TOYODA GOSEI REPORT 2019

We are a global company that delivers
satisfaction to customers worldwide
through safety, comfort, well-being
and the environment
T he To yo da Gosei Grou p c on tin ue s t o me e tt h e needs of soc iety th rou g h the p rov isiono f auto mo tive an d oth er p rod u ct s usingr u bber and p lastic tec h n olog y .

2

Management Philosophy

Boundless Creativity and Social Contribution
Good corporate citizenship

Customer satisfaction

We, as a good corporate citizen, contribute to

We aim to provide products and services

the economy and society through community-with satisfying quality and price in a timely

based business activities and social action

manner, through forward-looking R&D andprograms.

production engineering.

Proper business operation

Conservation of global
environment and resources

We promote business operations with integ-

We aim to conserve the global environment

rity through the establishment of a system

and resources in order to hand down a greener

founded on thorough compliance and corpo-

world to our children through every businessrate ethics.

activity, which includes cooperation with society and the development of an environmentfriendly product and manufacturing process.

Sustainable growth

Respect for the individual

We aim to build up the TG Group's collective

We aim to establish a vibrant corporate culture

strength through an open and fair relation-

through respect for individuality and the value

ship with suppliers, through a mutuallyof enhanced teamwork, based on sharedstrengthened corporate structure and inno-

responsibility and mutual trust between

vative management response to change.

employees and management.

Editorial policy

Reference guidelines

This report was compiled with the aim of providing share-・International Integrated Reporting Framework(International Integrated Reporting Council (IIRC))

holders, investors, and all other stakeholders with a deeper
understanding of the Toyoda Gosei Group. It describes theﬁscal 2018 business performance of the Group and explains
the Group’s strategy and efforts for creating medium- andlong-term value.
Since the 2018 report issued last year, the Toyoda Gosei
Report has been compiled as an integrated report. We have
tried to make it straightforward and understandable, withreference to the International Integrated Reporting Framework (International Integrated Reporting Council (IIRC))
for the IR section and the GRI Standards (Global Reporting
Initiative) for the ESG section.

Period covered by report

・GRI Standards(Global Reporting Initiative)
・Environmental Reporting Guidelines, 2018 Edition(Ministry of the Environment, Japan)
・Environmental Accounting Guidelines, 2005 Edition(Ministry of the Environment, Japan)＊Environmental data/ examples is available on
our website.

Contents

For CO2 emissions we received third-party
veriﬁcation.

3 Management Philosophy, Editorial Policy
4 History of Toyoda Gosei

https://www.toyoda-gosei.com/csr

Value Creation Strategy/environmental/report1/

The scope is outlined individually for some items.

6 Toyoda Gosei’s Value Creation Process
8 Letter from the President
12 Medium- and Long-Term Business Plan,“2025 Business Plan”
18 Message from the Ofﬁcer in
Charge of Finance
20 Financial and Non-Financial Highlights
22 Overview of Business

Date of issue

Foundation Supporting Value Creation

September 2019

Disclaimer

34 Sustainability ESG and SDGs
36 Environment
44 Social
52 Governance

Careful attention was paid to the content of this Report, but

Financial Report

April 1, 2018 to March 31, 2019
This report principally covers the period above, but content
related to other periods may be included as needed.

Scope
Toyoda Gosei Group(Last published in November 2018; issued once a year)

accuracy and the timing of updates is not guaranteed andToyoda Gosei shall bear no responsibility for trouble, loss, or
damage resulting from updates or errors in the information
herein.

60 Consolidated 10-Year Financial Summary
62 Financial Review
64 Consolidated Financial Statement
68 Company, Investor Information

3

History of Toyoda Gosei
Since its founding, Toyoda Gosei has provided new value tothe world through manufacturing that meets the needs ofthe times with original technology in the ﬁelds of rubber and plastics.

1949

1960

1970

Early years [1949～1979]

1980

Expansion [1980～1999]

1949 Nagoya Rubber Co., Ltd.

1980 Headquarters is relocated to present location

is established as a spin-off ofthe rubber research division of
Toyota Motor Industry Co., Ltd.
1957 Haruhi Plant begins operation
1967 Inazawa Plant begins operation
1973 Company name is changed to
Toyoda Gosei Co., Ltd.
1976 Morimachi Plant begins operation
1977 US Ofﬁce is established in Illinois
1978 Company is listed on the Nagoya Stock Exchange(Kiyosu, Aichi Prefecture)

1982 Bisai Plant is completed and begins operation
1985 Capital participation in Tai-yue
Rubber Industrial Co., Ltd.

1985 Company wins Deming Prize for
Total Quality Management

1986 TG Missouri Corporation is established1997 Company obtains ISO 9001
Present Kitajima Technical Center is completed

1999 Company is listed on the Tokyo Stock Exchange
Toyoda Gosei North America Corporation is established

Development history of technologies and products
Automotive Parts
Rubber1953

Brake hoses

1961

Piston cups

1977

Constant velocity
joint boots

1983

Nylon fuel hoses

1963

Flocked glass runs

1950

1982

Weatherstrips

Sound insulating glass runs

Plastics
1954

Plastic injection
steering wheels

1960

PP steering wheels

1974

1982

Plastic fuel ﬁller caps

Instrument panels

1989

Driver-side airbags

New Fields
1986

Start of R&D for blue LEDs

4

900
800

600
500
400
300

（ Billions of yen）
Net sales

700

200
100

1990

2000

Becoming a global corporation [2000～2009]2000 Toyoda Gosei Europe N.V. is established2001 Toyoda Gosei Asia Co., Ltd. is established2005 ISO / TS16949 certiﬁcation
2006 Toyoda Gosei (Shanghai) Co., Ltd. is established2008 Toyoda Gosei Minda India

2010

2018

0

Providing new value [2010～]
2013 Toyoda Gosei East Japan Co., Ltd. is establishedGDBR Industria e Comercio de Componentes Quimicos e de
Borracha Ltda. is established2014 Toyoda Gosei Irapuato Mexico, S.A. de C.V. is established2016 Toyoda Gosei Minda India Pvt. Ltd. Completion of
Bawal Plant and start of operations
2018 Toyoda Gosei Minda India Pvt. Ltd. Completion ofGujarat Plant and start of operations.
2019 Hubei Toyoda Gosei Zheng Ao Rubber & Plastics
Sealing Science and Technology Co., Ltd.
is establishedPvt. Ltd. is established2009 Miwa Technical Center isestablished

2011

Lightweight radiator hoses

2003

Two-color molded
opening trims

2000

2010

Lightweight opening
trim weatherstrips

2015

Plastic fuel ﬁller pipes

Capless fuel ﬁllers

2008

1998

2017

Large radiator grilles

Success indevelopment ofblue LEDs is certiﬁed

2010
2007

Start of R&D for
e-Rubber

Air conditioner
register with LED lighting

2019

Plastic turbo
ducts

Steering wheel with grip sensor /new type of side airbag

2017
1991

2018

2017

Rear-end impact airbags

Curtain airbags

Glass run for
ﬂush surface door

Plastic water pipes

2008

Noise absorbing air
intake ducts

2017

2014

Start of R&D for
GaN power semiconductors

Conclusion of
exclusive license
agreement with
Advanced Softmaterials,
Inc. for the main material(supramolecules)in e-Rubber

2018

Development with
EBM Corp. ofa prototype of
the “SupeR BEAT”
heart surgery simulator
that uses e-Rubber

2019World-classcurrent operationachieved ona vertical
GaN power
semiconductor

5

Toyoda Gosei’s Value Creation Processhwit
ng r s
i
t
a
lde
nic
mu k e hom
Co y stanmaDealing withrisks andopportunities that
affect Toyoda
Gosei

Value chain*

Environmental andsocial issues
Deepening social issues
Global warming
Depletion of resources● Water risks fromdroughts and ﬂoods● Increasing number ofendangered species● Aging populations

Development
and Technical
Design●●Sales

Acceleration oftechnical innovation●●

Procurement
Production

IoT/AIElectriﬁcation

Changing values
Diversiﬁcation ofvalues● Changing consumer
behaviors● Ownership → shares●Strengths of
Toyoda Gosei

New businessdevelopment
experiences

Knowledgein the ﬁelds ofrubber andplastics

GlobalNetwork

Sources ofvalue creation
Financial Manufactured Intellectual Human

Sincerity
6

ActivitySocial andrelationship

Unity

NaturalBusiness
activities thatgive rise tovalue in societyValue Creation Strategy

Foundation Supporting Value Creation

Financial Report

A society of well-being,safety and comfortoPr

Toyoda Gosei
stakeholders

on
si
vi
of
e
lu
va

SafetySystems

Resolvingsocialproblems
Interiors andExteriors

Automobile
e-Rubber,Markets
GaN power Other
semiconductors, areas
Weatherstrips
LEDs, GeneralIndustry Products
Functional
Components

Dealing withaging societies

Achievinga low-carbon society

Sustainable
company
growthContributing to
the local community

Provision ofsafety and comfort

Return of value* Toyoda Gosei’s value chain
Development and Technical Design

Procurement

Production

Sales● Commercialization in new ﬁelds
utilizing core technologies● Globally standardized know-how andprocesses● Anticipating customer needs andintroducing high value-added products● Development of new technologies andproducts coping with CASE

● Further promotion of TPS● Shift of resources to key ﬁelds throughselection and concentration● Strategies of modularization andsystem products● "Jidoka " and manpower saving utilizing IT● Reduction of environmental burden by
production engineering reform● Pursuit of economies of scale and thoroughgoing
efﬁciency and cost reduction activities

7

Letter from the President

President8Value Creation Strategy

Foundation Supporting Value Creation

Financial Report

Achieving sustainable growth by responding flexibly andrapidly to a dramatically changing environment

I would first like to extend my gratitude to ouraspiration to grow as a “global company that acts flexibly

shareholders, investors and all other stakeholders.

and swiftly in today’s dramatically changing businessenvironment, delivering the highest levels of satisfaction to

Massive business environment change

customers worldwide through safety, comfort, well-being

The world economy is facing increasing uncertainty as

activity to achieve our FY2025 business targets of sales

and the environment.” We have established three pillars oftariffs rise between the USA and China, the North American

exceeding ￥1 trillion, an operating profit ratio of 8%, andFree Trade Agreement (NAFTA) is reviewed, and the UK is

ROE of 10%.

leaving the EU. Effects are being felt in the form of a slowing
economy in China, the world’s largest automobile market,
Gosei has established a management system to deal withthese risks and to respond flexibly and swiftly to changes
in the external environment with the aim of achieving
sustainable growth.
In the automobile industry, companies are intensifying

FY2025￥1 trillion

Revenue￥807 billion

Operating profit ratio

5.1％

ROE（Return on equity）

6.6％（IFRS）▲

and fears of an economic slowdown in the USA. Toyoda

FY2017（J-GAAP）

8％
10％

Pillar I is “Venture into innovation, new mobility.”
One example of this in product development is our new

efforts to strengthen competitiveness through business tie-

air conditioner register with LED lighting, which uses

ups and joint development with other industries. Toyoda

resonant wireless power transfer technology for the first

Gosei is moving boldly to meet new challenges without

time in an automotive product. This is a modular productbeing constrained by the ways and customary practices

that incorporates electronics technology in an automotiveof the past. In this way we will contribute to society by

product using our core technologies in rubber and plastics.

delivering to the market at the earliest date new technologies
and products that provide the highest levels of satisfaction
through safety, comfort, well-being and the environment.

A look back on fiscal 2018
Last year, while continuing to refine our strengths as an expert
in the fields of rubber and plastic with a global network,
we also joined forces with suppliers, business partners, andstartup ventures.

Working together with a startup venture for the past year

In May we issued the 2025 Business Plan, our medium-and a half, we have also developed a prototype for theand long- term business plan, which highlights our“SupeR BEAT” surgical training simulator that uses e-Rubber

9Letter from the President

to reproduce the beating of the heart with great accuracy.

Pillar III is “Innovative manufacturing at production

e-Rubber is an artificial muscle material that functions withsites.” In addition to activities to raise productivity at ourelectricity. We have also set up a corporate venture capitalmanufacturing sites based on the Toyota Production System

department to facilitate searches for new technologies that

(TPS), we have begun new efforts to increase efficiency

complement our existing technologies.

using IT. Data are collected in manufacturing processes
and big data analysis is used to quickly identify and resolve
bottleneck processes.
To strengthen the business foundation that supports
activities in these three areas, we held the TG Global
Summit 2018 in November. About 130 leaders from 65group companies in 17 countries attended to discussspecific efforts to achieve business targets and sharestrategies for each region and field of business.

Pillar II is “Strategy for growing markets/fields,” in which
we aim to further grow our business globally. In China, wehave merged two production subsidiaries and made one
company a wholly- owned subsidiary to establish the bestproduction network for the nation as a whole. For rapidbusiness decisions and efficient operations, we have changed
the regional headquarters into a holding company andinvested for the first time in a location in central China.
In India, we established a new technical and sales office

FY2019 is a year of businessexecution with overwhelming speedin Gurgaon, a suburb of Delhi, to enhance local productOne of the key efforts in our 2025 Business Plan is todevelopment. Operations have also started at the Gujarat

execute business activities with “overwhelming speed.”

Plant, expanding our local production network.

We will improve efficiency in all aspects of our work for

In Indonesia, we established a new company to meet thegreater speed in every activity, without being constrained byhuge increase in demand for airbags as safety regulations

previous ways of doing things and customary practices.

become stricter.

Specifically,

Tianjin

China
HaryanaRajasthan

Hubei
Zhangjiagang

ShanghaiFuzhouFoshanIndia
Bangaluru

Jakarta

10

Indonesia

Value Creation Strategy

Foundation Supporting Value Creation

Financial Report

Pillar I: We are increasing the speed of development ofrecycle resources through reuse of things such as wastewater

new technologies, such as e-Rubber and power devices,

generated in production, and to reduce the weight ofand new products for use in CASE and modularization. We

products by making them with plastic instead of metal

will also strengthen tie-ups with startup ventures throughthrough concerted activities with domestic and international

corporate venture capital.

group companies and suppliers.

Pillar II: In China and India, where sales growth isIn the field of social activities, we strive to put down local

anticipated, we are conducting activities to grow whileroots and grow with our communities. Social contribution

ensuring profitability. In product development, we will

activities by employees are actively pursued in all parts ofincrease the added value of exterior and interior products

the world, and will continue. We also make efforts to develop

with things such as millimeter-wave compatible emblems,

people and workplaces that can support our business,and optimize the global supply system for airbag parts.

nurturing professional staff who can thrive globally and

Pillar III: Raising profitability is an issue we must
consider in working toward our business targets. We will

promoting two-way communication between superiors andsubordinates.

seek to improve consolidated performance centered on

In the field of governance, we have developed andthe Americas, where profitability is high, and accelerate

operate an internal control system to ensure that work is

restructuring of our business in the entire European

done properly and efficiently. With the appointment ofregion while keeping an eye on changes in the business

Mayumi Matsumoto as a Director, we have raised the level

environment.

of management monitoring and supervision by outside
directors and audit and supervisory board members.

ESG (environmental, social,governance) efforts

Towards sustainable growth

These ideas were already reflected in our Management

Toyoda Gosei celebrated its 70th anniversary on June 15,

Philosophy, which was amended last year, but the ESG way

2019. This would not have been possible without everyone’sof thinking has attracted global attention recently. At Toyoda

support, and we are deeply grateful.

Gosei we have been focusing energy in each of these fields
since before the ESG concept gained prominence.

In 2015, the United Nations adopted the Sustainable
Development Goals (SDGs) for 2030, and in recent years

In the field of environmental preservation, Toyoda

there is rising momentum for their achievement. We support

Gosei ranked third in the corporate ranking of the 22nd

the SDGs and are endeavoring to solve social problems

Environmental Management Survey (manufacturing

through our business activities. We will intensify and expand

category) of the Nikkei Shimbun, up from tenth last year.

these activities and raise our corporate value with the aim ofThis was in recognition of our efforts to promote biodiversity

achieving sustainable development into the new Japaneseby planting trees and creating biotopes on plant grounds, toera of Reiwa.

11Medium- and Long-Term Business Plan,“2025 Business Plan”
In Toyoda Gosei’s 2025 Business Plan, our medium- andThis shows not only numerical targets or how we seek

long-term business plan, we lay out three key areas thatto expand the scope of our business, but also new efforts

take advantage of the Toyoda Gosei Group’s cultivated

to contribute to society and to grow sustainably.

strengths.

What we aspire to be

Financial objectives
FY2017 ( J-GAAP)FY2025 (IFRS)Revenue￥807 billion￥1 trillion

Operating profit ratio

5.1％

ROE (Return on equity)

6.6％

▲

Toyoda Gosei aims to grow as a global company thatacts flexibly and swiftly in today’s dramatically changing
business environment, delivering the highest levels ofsatisfaction to customers worldwide through safety,
comfort, well-being and the environment

8％10％

Pillar Ⅰ

Pillar Ⅱ

Pillar Ⅲ

Venture into innovation,
new mobility

Strategy for growing
markets/fields

Innovative manufacturing
at production sites

New Technology, New Products

Current Products

Current Products●	Commercialization in the new
fields utilizing core technologies●	Development of new technologies
and products coping with CASE
●	Strategies of modularization andsystem products●	S election and concentration ofbusiness resources●	Make current products more highly
value-added●	Business plan execution through cooperation
with customers and business partners●	Globally standardized production
know-how and processes●	"Jidoka " and manpower saving
utilizing IT●	Reduction of environmental burden
by production engineering reform

Enhancement of our business foundation● Strengthening global operation

Financial
Policy● HR development● Business activities with integrity

Shareholder
returns

In terms of immediate shareholder returns, we have set a consolidated dividend
payout ratio of at least 30%, and we will work to make a return to shareholders
in various other forms as well from a comprehensive perspective.

Capitalinvestment

We will secure ¥50 billion per year by fiscal 2025 as funds for capital
investment for growth.

Cash on hand

In light of our operating environment, we will secure cash and deposits(excluding short-term borrowings) of around ¥30 billion above consolidated
monthly sales, including risk-response funds.

Key words for our activities

Pillar I. Venture into innovation, new mobility
Power semiconductors
e-Rubber

Consolidated net sales (100 million yen)

Pillar II. Strategy for growing markets/ﬁelds
Expanded safety systems business Expanded fuel system business

Enhancement of the business foundation
Strengthened global management
Improved proﬁtability in European business
Reduced costs
Strengthened supply chain
Reformed working practices*CASE compliance

Modularization

FCV compliance

Accelerated cooperation

Expanded business in India Increased N. American capacity
Increased non-Toyota sales

Higher value-added interior and exterior products

Pillar III. Innovative manufacturing at production sites
Global uniﬁcation of process know-how

Automation/manpower reductions

Flexible production
TPS (Toyota Production System)

IoT production control
Loss/waste reduction※ CASE : Connected Autonomous Shared Electric

2017

12

Lighter weight

High-value-added LEDs

2025

Value Creation Strategy

Foundation Supporting Value Creation

Financial Report

Pillar Ⅰ

Venture into innovation, new mobility● Early realization of new business through innovative technology
Course ofaction・Innovation derived from TG core technologies (rubber & plastic materials/LED)
ontribution to near future needs of relief (environment and health), safety, and comfort
・Cthroughdifferentiated technologies● Development of new technologies and products responding to drastic changes of
the car itself (CASE)

Key action items

Key points for implementation

Early realization of new business throughinnovative technology

In “Venture into innovation,” we are looking toward theearly establishment of the new businesses that will be ournext pillar. Crucial here will be to launch new technologies
and business plans with consideration of the company’sbusiness and value chain, and to accelerate innovations
with partners with whom we can carve out businesses
together, without insisting on doing everything ourselves.
Of course, we must not neglect to improve our own
technology when working together with good partners.
In “Venture into new mobility,” we are working todevelop new technologies and products compatible withthe drastic changes that are occurring in automobiles
themselves (CASE). For example, by continuing todevelop new products and raise the added value of existingproducts (modularization), we will be able to meet the new
expectations of customers worldwide.

● D evelop and establish e-Rubber business andcultivate its market (innovative soft-robot)● Develop and commercialize power devices (Highfrequency power source, wireless power supply)● Develop high-value-added LEDs and their applications

Development of new technologies and products
responding to drastic changes of the car itself (CASE)● Create new values/new products for the next generation (Autonomous driving/vehicles, electrification)●E nhance added-value of conventional products(Modularization, systemization)●D evelop technology to sustain new products (Lightweight, innovative manufacturing processes)

PICK UP

Venture into innovation ❶“e-Rubber,” a next-generation material thatfunctions with electricity and mechanical force
e-Rubber is a next-generation material developed with the
combination of a material patented by Tokyo University andthe rubber technology cultivated by Toyoda Gosei over 70
years. It can serve two functions: as a lightweight, soft artificial
muscle (actuator), and as a sensor that can detect subtle
pressure. We are working for practical applications in fields ofanticipated growth in aging societies, such as industrial robots
or medical devices.
In a collaboration with EBM Corporation, a startup outof Waseda University, we have developed a prototype heart
surgery training simulator, SupeR BEAT. It has earned highpraise, and we are aiming to launch a commercial version
soon.
In May 2019 we began a joint project with Nagoya
University and the city of Shinshiro to help extend healthy
lifespan. Sensors using e-Rubber are
inserted into thesoles
RobotsMedicineof shoes to gather data on changes in the walking posture ofelderly people. The aim is to detect weakening of the legs sothat preventive measures can be taken before people reach astate of requiring care assistance.

SupeR BEAT is a training simulator
for coronary artery bypass surgery.
Using e-Rubber, which expands
and contracts in quick response toelectricity switching on and off, it
can also faithfully reproduce theirregular heartbeats that occur
during surgery.

Promising areasof useAutomobiles

In off-pump surgery, a heart-lungmachine is not used and the heart
continues to beat as the surgeon
sews the bypass graft into place. Offpump surgery reduces the burden on
the patient, but requires great skill as
surgeons must quickly sew a vessel
with a diameter of only 2 mm onto
the surface of the beating heart.

RobotsMedicine

IoT/haptics

Elder care/ welfare

Automobiles

13Medium- and Long-Term Business Plan, “2025 Business Plan”

Venture into innovation ❷Vertical GaN power device
The LED technology we have developed over more than 30
years is used in the development of the power devices, electronic
components used in power conversion. Gallium nitride (GaN), a
key material in blue LEDs, has superior properties, such as highbreakdown voltage, for use in power devices. The applicationof our GaN crystallization technology together with a “verticalstructure” in which current flows perpendicularly to the substrate
has greatly improved the performance over that of conventional
silicon power semiconductors.

In FY2018, by modifying the structureof the GaN crystal, we achieved worldclass current flow of 100 amperes ona single chip. We are working together
with semiconductor and electronics
manufacturers to raise performance andreliability for a practical high-performance
power semiconductor device.

Promising areas of use
Home appliances

Mobility

Industrial equipment

Renewable energy

Power transmission
systems

Wireless
power supply

Electric vehicles Trains

Medicalequipment

Particle therapy

Higher efficiency Lighter weight Higher output

Venture into new mobility
With advances in autonomous technology, we expect tosee an increase in parts equipped with sensing functions
to perceive the surrounding environment, including othervehicles, pedestrians, and road shape, and human-machineinterface (HMI) functions for communication between
vehicles and humans. We are integrating sensors and otherelectronic components into front grilles, cockpits, steering
wheels and other interior and exterior products that wehave developed and manufactured over many years. These
modular products offer both functionality that supports
safety and comfort and attractive design.

Next-generation cockpit module

Contact sensors● Smart steering wheels
Drivers’ physical status sensed
with built-in cameras and sensors

Next-generation cockpit module

Touch sensor

Cameraauthentication

Instrument paneltransmissive display● Multifunctional console●Display instrument panel・Movable console to accommodate relaxation mode
(posture changes)
・H andier, more intuitive
operation with touch panel

External and warning information displayed on instrument panel

Next-generation front module
In December 2018, we announced an air
conditioner register with LED illuminationthat uses resonant wireless power transfer
technology for the first time in an automotive
product. This register is currently used on
the Lexus UX. The wireless technology
employed allows
for greater freedom
in the placement ofelectronic components
and design.

14

In January 2019, we established a new
Corporate Venture Capital Department toaccelerate open innovation efforts for the
rapid development of new products bycombining external knowledge with inhouse technology. The first case in which
it was involved came in March 2019 with
•Cameras and sensors that do not detract frominvestment in IMUZAK Inc., a Yamagata,attractive appearance.
Japan startup specializing in optical design •Car’s direction and other information communicated to people nearby with LED lights
and assessment. Incorporating theknowledge of that company in the field of optics, we are developing exterior andother products that are transparent to the infrared light of optical sensors (LIDAR).

Value Creation Strategy

Foundation Supporting Value Creation

Financial Report

Pillar Ⅱ

Strategy for growing markets/fields
Course ofaction● Prioritized global sales expansion and securing profit(selection and concentration of business resources)

Key action items

Key points for implementation

Redefine the strategy by business field

Looking at markets and trends for existing products byproduct field, we see much potential for growth including
modularization and higher added value in IE products
and increased business in SS products with the favorable
conditions of increasing safety regulations. We are now
making solid preparation for this. On regional axes, weneed to ensure competitiveness in China, India andother emerging markets where automobile production
is increasing, as well as in the major markets of North
America and elsewhere. There are many possibilities for
expanding sales to major customers, actively cultivating
new customers, and increasing future profits.
To ensure that this potential growth in existingproducts leads reliably to sales and profits, we will
deploy a focused strategy, selecting and concentrating
management resources, pursuing economies of scale,and thoroughly increasing efficiency.

● Weatherstrips: Noise reduction, profit reform inprioritized regions● Functional Components: Focus on fuel systems(weight reduction)● Interiors and Exteriors: Increase value of products(decoration, millimeter-wave radar compatible emblem)● Safety Systems: Regional strategy focusing on profitability

Prioritize regions for sales expansion● North America: Enhance production capacity for major
customers' production increases, sales expansion to
non-Toyota/non-JPN OEMs
● China: Sales expansion of global link cars (Toyota,
non-JPN OEMs) and new customers● India: Sales expansion to catch up with the growth ofthe market (mainly J-OEMs)

PICK UP

Building our network in China, the world’s largest market

Active investment in the rapidly growing Indian market

Toyoda Gosei has established a business network thatcan meet the needs of customers in China, the world’s
largest market. In FY2018, we made Tianjin Star Light- ,a wholly-owned subsidiary. This has increased the speedof management decisions. In July, two subsidiaries inFoshan- were merged to increase management efficiency.
In December, functions were strengthened by changing theregional headquarters into a holding company. With thesemoves, we have a system in place that can speed management
decisions in the China region. We have also invested in aweatherstrip manufacturer in central China.

In India, the demand for airbags is expected to increase withboth the rapidly rising number of automobiles manufactured
and regulations making safety equipment mandatory. In
FY2018, we established a sales and technical office near theheadquarters of Maruti Suzuki, a major customer. In addition
to speeding up our business activities, this strengthens local
development capabilities. In November, operations began at
a production plant that supplies airbags and steering wheels
to automakers.

Key business moves in FY2018

Production network in India

Automobile production in India(10,000units)

800

Tianjin Star Light becomesa full subsidiary [April 2018]
Weatherstrips

Minda TG Rubber Pvt. Ltd.
Toyoda Gosei
Minda India Pvt. Ltd.
Bawal Plant
Gurgaon Ofﬁce

Investment in Hubei Rock Rubber and
Seal Technology Co. Ltd.[December 2018],
Hubei Toyoda Gosei Zheng Ao Rubber &Plastics Sealing Science and Technology
established [May 2019] Weatherstrips

Merger of two production
subsidiaries in Zhangjiagang(Zhangjiagang TG) [ July 2018]
Safety system products,
interior and exterior products
Strengthening of the control
functions of Toyoda Gosei China(holding company created)[December 2018]

Neemrana Plant
Gujarat Plant
Toyoda Gosei
South India Pvt. Ltd.

About 1.5
times greater

700
600
500
400

375

300
200

387

427

725
581
448

269
178

100
0

2006 2009 2012 2015 2016 2017 2020 2023

(Year)(Forecast)15

Medium- and Long-Term Business Plan, “2025 Business Plan”

Engineering, sales functions
enhanced in USA
The USA is a major market. To respondrapidly to the product development needsof customers there, an engineering andsales office of our regional headquarters
was established in the state of Ohio. It is
located near the Ohio office of Honda R&D
Americas, Inc., a major customer. Having
design and sales capabilities for interior andexterior products and airbags at this location
will speed up development work.

Business network in the Americas(engineering, sales, production locations)
Toyoda Gosei North America Corporation

TGNA California Ofﬁce

DetroitTGR Technical Center, LLC

TG Missouri Corporation Headquarters Plant

TG Fluid Systems USA Corporation
Meteor Sealing Systems, LLC

TG Missouri Corporation Indiana Plant

TGNA Ohio Ofﬁce New

TG Automotive Sealing Kentucky, LLC

DublinColumbus

TG Kentucky, LLC
TG Missouri Corporation Mississippi Plant

LMI Custom Mixing, LLC

Toyoda Gosei Texas, LLC
Toyoda Gosei Brownsville Texas, LLC

Pillar III

Innovative manufacturing at production sites
Course ofaction● Realizing highly value-added factories through innovative manufacturing at
production sites

Key action items

Key points for implementation●Globally standardize production processes and know-

In the coming years existing products will need a further
competitive edge. To achieve that edge, we will need tomake processes more efficient and versatile, standardize
effective new practices, knowledge and techniques across thecompany, and create mechanisms so that these things can beshared and spread rapidly and globally to Group companies
and vendors. We will also make efforts to allot resourcesto new fields and introduce automation and labor-saving
processes in aging societies with fewer workers. Processes will
be carried out on compact, low-investment lines to improve
productivity.
The key to all this will be IT. Utilizing IoT and AI, we will
improve production and work efficiency and develop, fromamong engineers with knowledge in rubber and plastics,
core data science personnel who can utilize big data to
steadily innovate in production floor manufacturing.

how●Develop compact and lean production lines, TPS
promotion (1/n process, consolidation of supply parts,
flexible process with multiple products)●Promote manufacturing, “Jidoka ” and manpower saving
utilizing IT (IoT, AI)●Reduce environmental burden through productionengineering innovation and recyclable energy

PICK UP

Weatherstrip production process kaizen

Process kaizen with the use of big data
We are increasing competitiveness with the utilization of
big data that differs for structure or type and is generated
in real time. At our Morimachi Plant (Shizuoka Prefecture,
Japan), we have made improvements to reduce defects inthe appearance quality of weatherstrips using technology toanalyze this big data. Added to the experience accumulated
by veteran workers, we are increasing the speed and accuracyof our process kaizen with the use of big data.

16

Causes of problems are newly
identiﬁed with the use of big data

Rubber materials
kneading process
A process thatmixes the raw
materials in rubber

Processes in which anti-defectmeasures have been taken

ChemicalMolding
Vulcanizing
Processing/kneading processprocess
process
shearing
Processes from raw materials to
A process where sulfur
ﬁnished products
and other chemicals
are mixed inValue Creation Strategy

Foundation Supporting Value Creation

Financial Report

Skills Competition
A Mold Maintenance Skills Competition was held at the
Nishimizoguchi Plant with the aims of improving thecompany’s manufacturing level and creating an atmosphereof respect for technical skills. Ten skilled workers selected fromdepartments that perform mold maintenance for interiors/
exteriors, weatherstrips and other products competed in the
category of “Mold Finishing.” The goal was to produce workwith the highest accuracy
using files and measuring
instruments. We will continue
to raise the competitive abilityof our production sites byimproving and passing onthese skills.

Skills competition

Basis for Action

Enhancement of our business foundation
Course ofaction● Strengthen global management, HR development, and perform/undertake businessactivities with integrity

Key action items

Key points for implementation

Enhance global business management

Today, TG’s international locations account for morethan half of company profits, and it is important that westrengthen global governance with independence in eachregion and location and the head office in Japan serving
as the global headquarters. These days it does not takemuch to shake the foundations of a business, and weneed to focus efforts on thorough compliance and risk
management. At the same time, we are reforming cost
structures to improve profitability in key business areas,
including radically changing previous ways of doing
things.
Developing our people is also important in achieving
our goals. Whatever the challenge, human ability is whatallows us to overcome it. We are conducting businessactivities with integrity, and promoting diversity andreform in the way we work.

● Self-sustainable overseas affiliates and governance by HQ● Globally optimized production layout and logistics reform● Cooperation with global business partners● Strengthen supply chain (production and supply system)●Strengthen quality assurance systems(cope withemerging countries and new technologies/products)

HR development● Development of global HR, professional HR● Diversity, work style reform

Business activities with integrity● Thorough compliance and enhancement of internal
controls as a company of integrity

PICK UP

Global Summit

Management training for eachmanagement level

The TG Global Summit 2018 was held with the aims of sharing businessconditions and issues and building Group solidarity. Leaders from all
domestic and international group companies were brought together. It
was the first such summit in three years. Efforts were made to thoroughlyfamiliarize the participants with specific efforts needed to achieve themanagement targets in the 2025 Business Plan, so that they are known
throughout the Group. Business plans andemployee education programs for eachregion internationally were also shared.
In addition, participants inspected thelatest production lines at the Morimachi
Plant, the mother plant for weatherstrip
products, to learn about manufacturing
Inspection of Morimachi Plant
technology in Japan.

Management training for different management levels
is held at various locations with the aim of improving
the leadership and management skills of managers indomestic and international Group companies.
In FY2018, midd l e management
training was held in
Europe. Over threedays, the participantslearned the roles ofmanagement andmethods to resolve
problems that occur Participants in middle management
training held in Europe
in the workplace.

17

Message from the Officer in Charge of FinanceIn this time of change, financedepartments must take on the evermore important role of ensuring greater
capital efficiency and profitability.
Masaki Oka

Director, Corporate Officer
Chief of Finance and Accounting Headquarters /Chief of Audit Division / Chief of IT Headquarters

Bolstering Our IR Activities
As a listed company, Toyoda Gosei is accountable toinvestors regarding its business administration, and is
expected to disclose appropriate information and enhancesuch disclosure. In addition, we see it as an important part ofinvestor relations (IR) to lower our capital cost by winning
proper valuation through constructive dialogue with thecapital market. We also believe that we can share the fruitsof our corporate growth by making use of stakeholders’opinions and ideas in our business management. In line withthis thinking, we have set a major policy of our company:
obtaining proper valuation from the capital market andsociety through dialogue with investors.
Under top management leadership, we are committed
to strengthening our IR activities. In addition to the basic
approach of holding results briefings, including conference
calls, participating in conferences for overseas investors, andvisiting investors in Tokyo, we take part in more IR events
such as information sessions on our medium- and long-termbusiness plan, small meetings at which the president speaks,
plant tours, business briefings, and technology briefings.
We are also aware that conveying the voice of investors to
executives is another important role of IR. Accordingly, we
have improved our system of feeding information back to
officers and senior management in a timely and appropriatemanner.
In recognition of such efforts to strengthen our IR
activities, the Securities Analysts Association of Japan selected
Toyoda Gosei as an excellent company that made “remarkable
improvement in corporate disclosure” in fiscal 2018. Goingforward, we will continue to make IR activities a companywide effort.

18

Total number of contacts with institutional investors(including sell-side analysts) and individual investors（People）

800

600

456
400

200

521
448

319
179

Institutional
investors

301

210

148

Individual
investors

76
0

2013

2014

2015

2016

2017

2018 （FY）

Capital Cost
For several years now, our cost of equity capital and returnon equity (ROE) have remained at roughly the same level,
indicating that we face a challenge in terms of creating
shareholder value. Our 2025 Business Plan, which weannounced in May 2018, set out a target ROE of 10%.
This target was established with the goals of increasing
shareholder value by achieving ROE that stably exceeds
our cost of equity capital and of achieving the capitalefficiency needed for Toyoda Gosei to excel in the current
capital markets. The finance department will seek to createshareholder value by reducing our cost of equity capital in
addition to increasing ROE.
To secure an appropriate and stable share price andreduce our cost of equity capital, it is important to give
shareholders and investors a proper understanding of
Toyoda Gosei and get diverse shareholders and investors
to invest in our company. Leaving major shareholders

Value Creation Strategy

such as Toyota Motor Corporation aside, our shareholder
composition includes about 5% individual investors, 20%
foreign investors, and 15% Japanese institutional investors.
As the percentage of individual investors is low, the firststep toward cultivating a diverse shareholder and investor
base and securing share liquidity is to increase the numberof individual investors. Accordingly, we have started toboost IR efforts for individual investors. At present, we areworking to increase individual investors by actively holding
company information sessions targeting individual
investors in regions where recognition of Toyoda Gosei
is low. The finance department is determined to createshareholder value by continuing to reduce our cost ofequity capital.
Return on equity (ROE)
（%）

10.0
8.0

9.0

10-year average 7.0

7.9
6.9
7.1

6.0
4.0

9.8

6.6 6.7

6.6
5.2

4.1

2.0
0

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 （FY）
〈IFRS〉

Toward Achieving ROE of 10%
We recognize that raising profitability is our prime
necessity. In addition to ROE of 10%, our 2025 Business
Plan includes the targets of revenue of ¥1 trillion andan operating profit ratio of 8%. While revenue has been
growing steadily, however, our profitability has plateauedover the past several years. No matter how much our sales
expansion bears fruit, we will not garner high valuationin the capital market as long as profits remain static. As
the officer in charge of finance, I keep in mind that we, as
a listed company, are expected to produce profit growthconsistent with sales growth, and I will attend to revenue
management for the Group accordingly.
Our 2025 Business Plan sets out balanced global
sales expansion and securing of profits as one action
policy. To improve our business portfolio, we will rethink
unprofitable business and actively shift resources topriority fields.

Foundation Supporting Value Creation

Financial Report

Financial policy

Financial policy underpinning the 2025 Business
Plan, our medium- and long-term business plan
Shareholder
returns

In terms of immediate shareholder returns,
we have set a consolidated dividend payout
ratio of at least 30%, and we will work to
make a return to shareholders in various
other forms as well from a comprehensive
perspective.

Capitalinvestment

We will secure ¥50 billion per year by fiscal
2025 as funds for capital investment for
growth.

Cashon hand

In light of our operating environment, we
will secure cash and deposits (excluding
short-term borrowings) of around ¥30
billion above consolidated monthly sales,
including risk-response funds.

Our Financial Policy
Our ratio of equity attributable to owners of parent to total
assets is 50.0%. Even as profitability struggles to grow,
we have continued to accumulate stable earnings, and so
we see this as adequate in terms of security. In terms offinancial leverage, on the other hand, we are aware that acertain amount of control is needed to achieve ROE of 10%.
Based on this awareness, in November 2018 we announced
the financial policy underpinning our 2025 Business Plan.
First, in terms of shareholder returns, we have set a
consolidated dividend payout ratio of at least 30%, after
securing funds to invest for growth, remaining aware of
the financial balance to achieve ROE of 10%. Additionally,
we aim to make a return to shareholders in various otherforms as well from a comprehensive perspective.
As for capital investment, we plan to secure around¥50 billion per year as funds to invest for growth. This ¥50
billion will be our largest-ever capital investment amount,
and we see it as necessary to ensure continued growth in
the automotive industry, which has entered a period oftransformation.
Regarding cash on hand, we have made public theapproach we had adopted internally, and have made anexternal disclosure, which is to secure a level of funds thatwill allow us to conduct immediate operations even in theevent of a financial crisis or natural disaster. When disclosing
our financial policy, we have stated this point explicitly.
The establishment of this financial policy has allowed
us to organize our thinking regarding our shareholder
composition and balance sheet, and helped to ratchet thefinance department up a level. With a view toward our major
IR policy—obtaining proper valuation from the capital
market and society through dialogue with investors—
I hope to convey our initiatives and thinking to as many
stakeholders as possible.

19

Financial and Non-Financial Highlights
Financial Data
The Group adopted International Financial Reporting Standards(IFRS) effective from the first quarter of fiscal 2018, ended March 31, 2019.

Revenue（Billions of yen）

800

781.8

727.8

755.6

807.9

840.7

Operating profit /Profit attributable to owners of parent

Return on equity（Billions of yen）

（％）

50
41.6

Operating proﬁt
Proﬁt attributable to owners of parent

42.8

40.6

40

600

35.1

36.5

30
400

20

200
0

21.1

20.2

16.2

2014

2015

2016

2017

J-GAAP

IFRS

2018

0

(FY)

2014

2015

2016

2017

J-GAAP

IFRS（Billions of yen）

（Yen）

80
54.4

53.4

165.04156.49

2018

28.4

27.1

27.8

30.0

180.09

2014

2015

2016

2017

2018

J-GAAP

IFRS

0

2015

2016

2017

J-GAAP

IFRS

2018

(FY)

（Billions of yen）

（％）

60

125.4
85.2 84.7

78.3
65.7

108.2 107.3
97.9
97.5
89.0

50

0

20

2014

Ratio of equity attributable to ownersof parent to total assets

100

51.6

51.7

2014

2015

50.7

50.1

50.0

2016

2017

2018

J-GAAP

IFRS

40

20

2014

2015

2016

2017

J-GAAP

IFRS

2018

(FY)

2014

2015

2017

2018

IFRS

(FY)

60

56.0

56.0

2014

2015

53.0

56.0

60.0

20

Cash and cash equivalents /Interest-bearing debt
150

0

100

(FY)

Cash and cash equivalents
Interest-bearing debt

2016
J-GAAP

5.2

40

20
0

6

(FY)

125.42

46.8

29.5

6.7

（Yen）

163.44
55.2

6.4

6.6

Annual dividends per share

200

64.7
60

7.1

2

Basic earnings per share

Capital investment
R&D expenses

8

4

10

Capital investment / R&D expenses

40

23.3

21.3

10

0

(FY)

0

2016

2017

J-GAAP

IFRS

2018

(FY)

Value Creation Strategy

Foundation Supporting Value Creation

Financial Report

Non-Financial Data
Environment
CO2 emissions per sales unit
Japan consolidated (Toyoda Gosei Co., Ltd.
and domestic afﬁliates)
Outside Japan
Global consolidated（ t-CO2 /¥100 million）

150
111

107

107

103

100
76
48

50

74

75

45

43

95

73

69

63

42

37

33

0

Base year

15

2015

2016

2017

2018

11.1

7.0

7.0

0

0.8

0.72

5.3

（2012）

3.2

3.6

3.7

Base year

2014

2015

2016

5.5

5.3

0.63

0.54

0.5
4.0

4.4

0.65
0.62
0.63
0.58 0.53
0.62

0.64

0.71

（2012）

0.6

6.8

6.0

（2013）

5

(FY)

8.6

Japan consolidated (Toyoda Gosei Co., Ltd.
and domestic afﬁliates)
Outside Japan
Global consolidated（1,000 m3/¥100 million）

0.7

10 （2013）

4.0

2014

Japan consolidated (Toyoda Gosei Co., Ltd.
and domestic afﬁliates)
Outside Japan
Global consolidated（t/¥100 million）

11.3

100

（2012）

Water use per sales unit

Waste volume per sales unit

3.2

2.8

2017

2018

0.52

0.45

0.4
0.0

(FY)

0.46

Base year

2014

2015

2016

2017

2018

(FY)

SocialAverage years of service for male and female[Toyoda Gosei Co., Ltd.]

Female

20

19.5

15

17.9

12.7

13.8

17.9
13.8

14.8

Male

18.6
15.5

10

Female（People）

80

70
11

60
40

5
0

[Toyoda Gosei Co., Ltd.][Toyoda Gosei Co., Ltd.]（Years）

18.0

No. of female managers

No. of parental leaves taken

59

Male

20
63
6

57

58
7

61
53
6

12

2015

2016

2017

2018

16

15
10

10
51

47

8

49

6

6

2014

2015

5

20

2014

（People）

0

2014

(FY)

2015

2016

2017

2018

0

(FY)

2016

2017

2018

(FY)

Governance
Employment rate of people with disabilities

Labor accident rate (rate of lost-worktime injuries)

（%）

（%）

3

1.5

[Japan]

2.41
2.08

2.38

2.14

2.33

1.06

2015

2016

1.06

1.15

1.0
0.51

0.41

2017

2018
(FY)

1.02

0

（People）

400

0.54

0.39

359

0.062
2018

0.06

0.25

0.064

2014

2015

2016

2017

(FY)

277

0

134
63

336

244

200
100

0.08

New employee training
New manager training
Designated legal affairs workshop (for mid-career
employees)

317
300

0.43

Toyoda Gosei Co., Ltd.

No. of people who have taken compliance training[Japan]1.20

Transport equipment manufacturing industry

0.5

Statutory employment rate：2.0%

2014

No. of casualties in labor
Rate of lost-worktime
accidents (people)
injuries＝ Total labor hours × 1 million

All manufacturing industries

2.2%

2

1

[Japan]

156

153

109

107

2017

2018

95

57

56

2014

2015

72
2016

(FY)

21

Overview of BusinessWe supply automotive parts that use rubber and plastic polymer technology globally

Product field
Sales revenue by product area
Weatherstrips¥129.4

Interiors and Exteriors

334.1 billion（39.7 ）billion（15.4％） ¥Functional Components

Safety Systems％¥840.7billion（FY2018）¥136.2 billion（16.2％） ¥240.8 billion（28.7％）

Automotive Parts

Weatherstrips

Opening trim
weatherstrips

Door glass runs

Functional Components
Plastic fuel filler pipes

Plastic turbo ducts

Brake hoses

Instrument panel modules
and components

Radiator grilles

Console boxes

Airbags

Steering wheels(with built-in airbags)

Pop-up hood actuators

GaN power devices

LEDs

Interiors and Exteriors

Safety Systems

Other Products

e-Rubber

General Industry Products(Air purifiers, interior and exterior products for
agricultural, construction, and industrial machines)

22Value Creation Strategy

Foundation Supporting Value Creation

Financial Report

Global Network
With 67 group companies in 17 countries/regions, Toyoda Gosei swiftly meets the needs of customers around theworld. We have established sales and engineering systems that are customer-oriented and community-based with
globally optimal systems of production and delivery.

Group companies

67

companies

Asia

23

Japan

18

companies

companies

Americas21

Europe &Africa5companies

companies

Sales by region

Employees by region
Japan

Japan

¥377.9 billion

8,828（22.4 ）％Americas¥ 840.7billion（FY2018）¥245.4 billion
Asia¥173.3 billion
Europe & Africa¥43.9 billion

Americas39,429（End of FY2018）

14,091（35.7 ）％Asia

13,420（34.0 ）％Europe & Africa

3,090（7.8 ）％Note: Sales by region includes amounts for internal transactions within the Group, and so does not match the total value for consolidated sales.

23

Overview of Business / Automotive Parts

Weatherstrips

Proportion of sales by product field

Weatherstrip products serve many functions. In addition toprotecting the passenger cabin from rain, wind, and noise, they
ensure the smooth functioning of doors and windows and givedoors a satisfying sound when they close. We enjoy a top market
share with global supply from 24 production sites worldwide andintegrated manufacturing from materials development to in-housekneading of materials, product development and design, production
preparations, and molding and processing. We continue to improve
our product planning and production technology abilities, andactively propose new ideas to customers. We will also make further
efforts for lighter weights and recycling.

15.4％
5-year sales trends（Billions of yen）

400

300
200

129.4

100
0

2014

2015

2016

2017

J-GAAP

IFRS

2018 （FY）

1

3

4

2

A

A
A

A-A section

A-A section
SpongerubberA
A-A section

Decorative portion

1 Opening trim weatherstrips
Sponging processes for rubber using our materials development
and production technology reduce weight by about 30%. Ourlineup of fabric and other decorative variations is used where theparts are visible from the vehicle cabin.

24

2 Door weatherstrips

Value Creation Strategy

Foundation Supporting Value Creation

Financial Report

Main production sites
Location

Name

Shizuoka

Location

Hinode Gomu Kogyo Co., Ltd.
Japan

Mie

Name

ThailandToyoda Gosei Co., Ltd. Morimachi Plant

India

Kaiyo Gomu Co., Ltd.

MiyagiTG East Japan Co., Ltd.

Fukuoka

Toyoda Gosei Kyushu Co., Ltd.

Minda TG Rubber Pvt. Ltd.
Toyoda Gosei (Foshan) Rubber Parts Co., Ltd.

Asia
China

TG Automotive Sealing Kentucky, LLC
Meteor Sealing Systems, LLC

MexicoToyoda Gosei Automotive Sealing Mexico,
S.A. de C.V.

CanadaWaterville TG Inc.

BrazilGDBR Industria e Comercio de Componentes
Quimicos e de Borracha Ltda.

Fuzhou Fu-Yue Rubber & Plastic IndustrialCo., Ltd.
Hubei Toyoda Gosei Zheng Ao Rubber & Plastics
Sealing Science and Technology Co., Ltd.

LMI Custom Mixing, LLC
AmericasToyoda Gosei Minda India Pvt. Ltd.
Toyoda Gosei Star Light (Tianjin) Auto Parts Co., Ltd.

Chusei Gomu Co., Ltd.

America

Toyoda Gosei Rubber (Thailand) Co., Ltd.

Europe & Africa

TaiwanTai-yue Rubber Industrial Co., Ltd.

Germany

Toyoda Gosei Meteor GmbHUK

Toyoda Gosei UK Ltd.

Czech Republic Toyoda Gosei Czech, s.r.o.
South Africa Toyoda Gosei South Africa (Pty) Ltd.

A
A-A section

A

A-A section

AA

3 Door glass runs
Weight has been reduced about 30% by switchingfrom rubber to rubber-plastic admixtures andadopting innovative design that allows certain
sections to be made thinner.

4 Outer weatherstrips

AA

A-A section

5 Luggage weatherstrips

525Overview of Business / Automotive Parts

Functional Components
Functional components such as fuel parts and flexible hoses support
the basic automobile functions of running, stopping, and turning.
We have a lineup of parts that are lighter and more compact thanever, giving us a top share in the world market with global supply
from 21 locations worldwide. We are developing materials andproducts that take advantage of the characteristics of plastics andrubber—flexibility, electric insulation, heat resistant conductivity,and light weight—with a view to the widespread adoption of clean
energy vehicles including PHVs, EVs, and fuel cell vehicles.

Proportion of sales by product field

16.2％
5-year sales trends（Billions of yen）

400

300
200

136.2

100
0

2014

2015

2016

2017

J-GAAP

IFRS

2018 （FY）■ Fuel Tank Peripheral Parts

Fuel filler caps

Fuel filler lids

Fuel hoses and tubes(Engine-side hose included in photo)

Fuel filler hoses

Locknuts/pump gaskets

Roll-over valves

Hydrogen tank liners

26

Fill limit vent valves

Capless fuel fillers

Inlet check valves

Plastic fuel filler pipes

Value Creation Strategy

Foundation Supporting Value Creation

Financial Report

Main production sites
Location

Name

Location

Toyoda Gosei Co., Ltd. Haruhi Plant
Aichi

Name

Toyoda Gosei Co., Ltd. Heiwacho Plant

Toyoda Gosei Rubber Mexico, S.A. de C.V.

MexicoShizuoka

Toyoda Gosei Co., Ltd. Morimachi Plant

Kanagawa

Toyoda Gosei Co., Ltd. Kanagawa Plant

Aichi

TG Fluid Systems USA Corporation

AmericasToyoda Gosei Co., Ltd. Inazawa Plant

Japan

TG Kentucky, LLC

America

Toyoda Gosei Irapuato Mexico, S.A. de C.V.
Toyoda Gosei (Thailand) Co., Ltd.

ThailandToyoda Gosei Rubber (Thailand) Co., Ltd.

FTS Co., Ltd.
Asia

Hinode Gomu Kogyo Co., Ltd.
Mie

Kaiyo Gomu Co., Ltd.

Toyoda Gosei Kyushu Co., Ltd.

Minda TG Rubber Pvt. Ltd.

Indonesia

PT. Toyoda Gosei Safety Systems Indonesia

TaiwanTai-yue Rubber Industrial Co., Ltd.

Chusei Gomu Co., Ltd.
Fukuoka

Toyoda Gosei Minda India Pvt. Ltd.

India

Europe & Africa Czech Republic Toyoda Gosei Czech, s.r.o.

■ Engine Peripheral Parts
Resonators

Ventilation hoses
Air cleaner hoses

Reservoir tanks

Plastic turbo ducts

Noise absorbing
air intake ducts

Plastic water pipes

Intake manifold gaskets

Cylinder head cover gaskets
Plastic air pipes■ Parts for hybrids and EVs
Engine covers

Radiator hoses

Cooling ducts

Battery insulating platesBattery cases

Inverter covers■ Chassis and Drive Train Parts（Plastic）（Rubber）

3

1 Constant velocity

2

joint boots

2 Piston seals

3 Brake hoses

Speedometer gears

Transmission covers

1
Column hole covers

Piston cups

27

Overview of Business / Automotive Parts

Interiors and Exteriors
Instrument panels, console boxes, and other interior parts
contribute greatly to comfortable vehicle cabins, while exterior parts
such as radiator grilles and back door garnishes affect overall vehicle
design. These are all things noticed by customers, and demanda high aesthetic sense and high quality. We have built a global
network with 22 production locations, spread our technical abilities
from Japan to international locations, and refined our supply
and competitive strengths. We are also taking advantage of ourknowledge as a pioneer in LED development in efforts to develop
automotive LED products.

Proportion of sales by product field

39.7％
5-year sales trends（Billions of yen）

400

334.1

300
200
100
0

2014

2015

2016

2017

J-GAAP

IFRS

2018 （FY）■ Interiors
Instrument panel modules and components

Defroster nozzles

Ornamental panels

Registers

Console boxes

Meter clusters

28

Cup holders

Glove compartments

Using traditional, preelectronic Japanesetechnology, the console
box lid opens and closes
smoothly without the useof a motor. Wood-grain
panels and leather impartelegance.

Value Creation Strategy

Foundation Supporting Value Creation

Financial Report

Main production sites
Location

Name

Location

Aichi

Kanagawa
Japan

Aichi

Toyoda Gosei Texas, LLC

Toyoda Gosei Co., Ltd. Bisai Plant

MexicoToyoda Gosei Irapuato Mexico, S.A. de C.V.

Toyoda Gosei Co., Ltd. Seto Plant

CanadaTG Minto Corporation

BrazilGDBR Industria e Comercio de Componentes
Quimicos e de Borracha Ltda.

AmericasToyoda Gosei Co., Ltd. Kanagawa Plant
Toyoda Gosei Interior Manufacturing Co.,Ltd.

Pecval Industria Ltda.

TGAP Co., Ltd.

Americas

NaganoHoshin Gosei Co., Ltd.

Shizuoka

TG Opseed Co., Ltd.

Fukuoka

Toyoda Gosei Kyushu Co., Ltd.

AmericaName
America

Toyoda Gosei Co., Ltd. Inazawa Plant

ThailandToyoda Gosei (Thailand) Co., Ltd.

India

Toyoda Gosei South India Pvt. Ltd.

Asia

China
TaiwanTG Missouri Corporation
Europe & Africa

TG Kentucky, LLC

Air conditioner registerwith LED lighting
Wireless power transfer
technology based onmagnetic resonant couplingis used for the first time in
an automotive part. This isalso a means to prevent wire
breakage from repeatedmanipulations of the knob
and give greater freedom ofdesign.

UK

Tianjin Toyoda Gosei Co., Ltd.
Toyoda Gosei (Foshan) Auto Parts Co., Ltd.
Fong Yue Co., Ltd.
Toyoda Gosei UK Ltd.

■ Exteriors
Radiator grilles
We satisfy all sorts of user design
preferences with our decorativetechnology, such as plating andpainting, and molding technology.

Back door garnishes

Automotive headlamp LEDs

Shade
Lens

Millimeter wave compatible emblems
LED cabin lamps

Our decorative and molding technologies have enabled the development of vehicle
emblems that are transmissible to millimeter wave radar while maintaining aplating-like shine.

Assist grips29Overview of Business / Automotive Parts

Safety Systems

Proportion of sales by product field

28.7％

We supply airbags that lessen the impacts on vehicle occupants
during accidents, pop-up hood actuators that lessen the impact
on the heads of pedestrians who are hit, and steering wheels withattractive designs from 20 production sites worldwide. We willcontinue our development efforts for airbags with ever higher
performance while at the same time developing technologies thatmeet the needs of emerging markets and actively pursuing technicaldevelopment that integrates preventive safety.

5-year sales trends（Billions of yen）

400

300

240.8

200
100
0

2014

2015

■ Airbags
2
3
4

6

6
7

1
5

6
6

1 Driver-side airbags

30

2 Curtain airbags

8

2016

2017

J-GAAP

IFRS

2018 （FY）

Value Creation Strategy

Foundation Supporting Value Creation

Financial Report

Main production sites
Location

Name

Location

Toyoda Gosei Co., Ltd. Heiwacho Plant
Aichi

Toyoda Gosei Co., Ltd. Bisai Plant

Name

ThailandToyoda Gosei (Thailand) Co., Ltd.

Vietnam

Toyoda Gosei Haiphong Co., Ltd.
Toyoda Gosei South India Pvt. Ltd.

Ichiei Kogyo Co., Ltd.

Japan

Americas

India

NaganoHoshin Gosei Co., Ltd.

MiyagiTG East Japan Co., Ltd.

Fukuoka

Toyoda Gosei Kyushu Co., Ltd.

America

TG Missouri Corporation

Asia

Minda TG Rubber Pvt. Ltd.
Indonesia
China
TaiwanMexicoTAPEX Mexicana, S.A. de C.V.

BrazilGDBR Industria e Comercio de Componentes
Quimicos e de Borracha Ltda.

Europe & Africa

Toyoda Gosei Minda India Pvt. Ltd.

PT. Toyoda Gosei Safety Systems Indonesia
Tianjin Toyoda Gosei Co., Ltd.
Toyoda Gosei (Zhangjiagang) Co., Ltd.
Fong Yue Co., Ltd.

Czech Republic Toyoda Gosei Czech, s.r.o.
South Africa Toyoda Gosei South Africa (Pty) Ltd.

3 Passenger-side airbags

4 Knee airbags

5 Seat cushion airbags

6 Side airbags

7 Rear-seat center airbags

8 Rear-end impact airbags■ Pop-up Hood Actuators■ Steering Wheels

These actuators lift the hood and widen the space between hood andengine, reducing head or other impacts to pedestrians.

Our lineup of attractively designed wooden, leather,and wood grain steering wheels are used by a wide
range of customers.

Hood

Piston31

Overview of Business / Other Products■ e-Rubber

We are continuing to develop e-Rubber, an innovative, soft, polymer device that uses supramolecular Slide Ring
Material. e-Rubber is promising for use in a wide range of fields as a power source or as touch or pressure sensors.

Basic structure

Medicine
RobotsDevelopment and spread ofa surgical
医 療training simulator

Artificial
muscleロボット
ロボット(soft robots)

医療

自動車
自動車

Elastic electrode
Dielectric layer(Slide Ring Material)

医療

Power
Sensorsourceボット

医療electrode
Elastic
on-offDielectricelectricity
layer(Slide Ring Material)Powersourceロボット

Powersourceロボット

electrodePower layer
source Elastic(actuator)
Dielectric(SlideRing andMaterial)
Expands
contracts with

Tactile/pressure
医 療 sensor

Automobiles

自動車
Futurecars

Promising areas of use
IoT/ハプティクス

介護・福祉
Elder care/ Welfare

自動車

IoT/ハプティクス

Movement support for
介護・福祉
caregivers

IoT/Haptics

自動車

介護・福祉

Sensor Sensor

Senses pressure and converts toelectric signals

Tactile sensors,

IoT/ハプティクス
pressure sensors

Exhibit examples
Haptics;eR Hapt［irʌ'pt］（under development）

Tactile sensationis conveyed!

e-Rubber32

e-RubberHeart surgery training simulator（SupeR BEAT）

Tactile robot hand(under development)

Using e-Rubber, which moves inquick response to electricity turning
on/off, the simulator faithfully
reproduces the beating of the heart.

This tactile robot hand can feel thesoftness of objects with sensors in
the fingertips.

Haptics Sharing
transmits thetactile sensationof nearby people
to your fingers. An
object’s hardness
and softness isreproduced at a
distance.

e-RubberValue Creation Strategy

Foundation Supporting Value Creation

Financial Report■ GaN power devices

With the application of LED technology, we are developing products that contribute to higher efficiency andgreater compactness of power conversion equipment.

Power transistors（under development）

Using gallium nitride (GaN)
crystallization technology, weare developing products that
contribute to greater efficiency
and compactness of power
conversion equipment.

■ LEDsLEDs with new added value are being developed.

Deep ultraviolet LED lightsource modules
An LED module that emits
deep ultraviolet light (UV-C),
which has a sterilizing effect,is used for purposes such as
water sterilization (ensuring
drinking water, purifying
wastewater)

Solar LEDs
Red, green, blue phosphor isirradiated with violet light toachieve a color tone close to
sunlight.

■ General Industry Products

We have used our automotive parts and LED technology to develop and produce products in various other fields.

Air purifiers
We handle many different
variations in function, design,color and more.

Interior and exterior
products for agricultural,
construction, and industrial
machinery

Dynamic dampers

33Sustainability

ESG and SDGs
Policy for ESG
Toyoda Gosei is taking the nine actions below as
key efforts in the area of ESG (environment, society,governance) to achieve sustainable growth.

1 Building Low-Carbon Societies

Environment

Society

2 Building Recycling Societies
3

Building Environmental
Management Systems

4

Cultivating Global Personnel
and Promoting Diversity

5

Creation of Safe and Pleasant
Workplaces

6 Higher Product Quality
7 Living with the Local Community

Governance

8 Improved Corporate GovernanceWith the company creed of “Boundless creativity
and social contribution,” we would like to contributeto a sustainable society through growth of thecompany. For that purpose we are taking initiative
to resolve the global problems of society and theenvironment shown in the United Nation’s Sustainable
Development Goals for international society by 2030.
Specifically, through various business activities that
we have advanced for the creation of a better society,such as providing airbags that reduce injuries during
accidents and lighter weight parts that contributeto improved automobile fuel economy and reduced
carbon emissions, we will meet the expectationsof our stakeholders around the world, including
customers, shareholders, investors, employees, andsuppliers.

9 Strict Compliance

Relationships with stakeholders
Stakeholders

Declaration

Customers

We will provide in a timely manner products
and services with quality and prices that satisfy
customers, based on research and development
and manufacturing technology that anticipates
future changes.

Shareholders,investors

Our 2025 Business Plan clearly shows our
medium- and long-term management targets
and strategic policy for sustainable growth.

Communication

●
●

●

●
●

●

Employees

34

Suppliers

Based on open and equal relationships with
suppliers, we strengthen each other’s corporate
cultures, strive for management innovation,and raise the collective Group strength.

Local communities

We contribute as a good corporate citizen todevelopment of the economy and society
through business activities rooted in eachcountry and community and social contribution
activities.

National and local
governments, industry
organizations

We h a v e b u i l t s y s t e m s f o r s t r i c t l e g a lcompliance and thorough corporate ethics,
and conduct our business activities withintegrity.

Financial statements (4 times/year)
Financial results briefings (2 times/year),annual shareholders’ meeting (1 time/year)
WebsiteIndividual meetings
IR tools (general reports, business reports)●●We respect the individuality of each person whileat the same time increasing our collective strength
through teamwork, achieving a vibrant corporate
culture with meaningful work based on labormanagement trust and mutual responsibility.

CS/Business activities
Website●●●Intranet/in-house communications
Workshops
Employee surveys (6 times/year)
Central labor-management consultations(5 times/year)
Departmental labor-management consultations(6 times/year)

●

●
●

●
●

●

Procurement activities
Procurement liaison meetings

Contributing to the community through businessParticipation in volunteer activities

Complying with laws/regulations
Participation in industry-academia-government
collaboration projects
Participation in industry organizations●●Foundation Supporting Value Creation

Value Creation Strategy

Financial Report

Materiality determination process
STEP

1

Identifying issues

With reference to the Global Reporting Initiative (GRI)
guidelines, we have thought about how we can contribute toachieving the 17 targets set in the SDG through the Toyoda
Gosei Group business strategy, and the risks and opportunities
associated with each of those businesses.
Efforts toward SDGs
Through its business activities, the Toyoda Gosei Group contributes to theachievement of the sustainable development goals (SDGs) that internationalsociety (all United Nations member nations) are targeting for 2030.

STEP

2

The issues for consideration identified in STEP
1 were placed on a materiality map. Based oninterviews with experts and stakeholders, items
placed in the “very high region” by either were
judged to be issues of utmost importance.

Very highDegree of impact on stakeholders

Judging the importance ofeach element from internaland external perspectives●

3

Hiring ● Respect forhuman rights
Contributing to society
through business activities● Environmental preservation and building
environmentally-friendly societies●●

Social contribution activities●

Higher employee satisfaction

●
●

High

STEP

Communication
with stakeholders●

Supply chain management

Healthy labor-management relations● Creation of new
products based on
advanced technology

Importance in Toyoda Gosei

Very highMateriality determination

The important issues identified in STEP 2 were investigated by a project team made up of people fromrelevant departments, and nine key issues were decided. This materiality is obviously of interest to andhas a strong impact on stakeholders. These issues are positioned as important themes for the Toyoda
Gosei Group as well.

Environment（E）●●

Building Low-Carbon
Societies
・Reduction of CO2 emissions
・Reductions in greenhouse gases

Social（S）●●●

・Development of people withan international outlook
・Promotion of work-life balance
・Promotion of diversity●

Environmental Management
・Compliance, management system creation
・Fostering of environmental awarenessOccupational Health and Safety
・Creation of safe and pleasant
workplaces
・Sound management

Personnel

Governance（G）

Building Recycling Societies
・Reductions in waste
・Reduction of water usage●

Higher Product Quality●

Living with the Local Community

Corporate Governance・Transparency in corporate
governance and management●

Thorough Compliance・Corporate ethics and legal
compliance

35Environment

We contribute to preservation of the earth’s environment
through all of our business activities to leave a greener,
richer world for the future and our children.
We obtain many resources from the earth—water, food and clothing as well as raw
materials such as rubber, resin, and metal. At the same time, we inflict damage on
the earth through the emission of greenhouse gases and depletion of resources as aresult of overuse in our daily lives and business activities.
To leave a rich, green earth to the children who will build the future, Toyoda
Gosei has been implementing Environmental Action Plans every five years. We havealso formulated a long-term vision in our TG 2050 Environmental Challenge and areworking to preserve the environment. These activities have earned Toyoda Gosei ahigh ranking by the press and others, and we will further intensify our efforts. We will
also continue working actively to create a corporate culture and develop personnel
for the implementation of sustainable environmental preservation activities.

Hiroshi Yasuda

Director, Corporate Officer
Chief of Environment Division / Chief of Production Headquarters /Chief of Safety and Health Promotion Division

Basic philosophy
The Toyoda Gosei Group formulated its 1st Environmental
Action Plan in 1993 based on its environmental policy, and sincethat time has been actively confronting environmental issues.
With the belief that environmental issues need to be
tackled from a long-term perspective, we announced the TG
2050 Environmental Challenge, our long-term environmental
targets, in February 2016. That same year we formulated
our 6th Environmental Action Plan for activities and targets
over the five years until 2020, and have been promoting

environmental activities.
To carry out environmental management that meets the
expectations of society, we have established environmental
operations in the Americas, China, and Asia, and have put
in place a global system for area management in these fourglobal regions including Japan. To achieve our TG 2050
Environmental Challenges, we are implementing group-wide
activities to meet FY2020 targets with a view to the medium
term until 2030.

Environmental Policy
1. Environmentally-friendly
corporate activities

2. Good corporate citizenship

We are keenly aware that all stages of our business
relate deeply to the environment, from development,
production, and sales activities to end-of-life disposal. The
Toyoda Gosei Group, including all internal departments,
domestic and international affiliates, and suppliers,
conducts all business activities with concern for theenvironment in cooperation and coordination withcustomers, government authorities, and others.

As a good corporate citizen, we participate in, support,
and cooperate with environmental activities by manygroups while also working on environmental activities
in the community and broader society. We also
provide education for all employees to support themin becoming involved in environmental activities as
members of the community and society, and supportsocial contributions and volunteerism.

Products andtechnology

TG 2050 Environmental Challenge—A Greener, Richer World for Our Children
The Toyoda Gosei Group specializes in the field of highpolymers—rubber and plastics.
Our symbol is the benzene ring, a hexagonalhydrocarbon structure that is the starting point forpolymers. Borrowing from the six sides of the benzene
ring, the TG 2050 Environmental Challenge sets six
challenges to strengthen our environmental efforts with along-term view to the year 2050.

36

3. W
 hil e spre ading
information on these
activities, we listen
to the opinions ofpeople at all levels ofsociety and work to
improve our activities
wherever we can.

Recyclingsociety

Contribute to an
environmentally-friendly
society through highpolymer and LED
technology

Low carbon
society

Minimize waste andcreate resource
recyclingsystems

Minimize plant
ＣＯ２ and utilize
renewableenergyRecyclingsociety

Environmental
preservation andliving with nature

Minimize water
usage and raise
wastewater
quality

Environmental
management
Foster an environmentally
responsible corporate
culture andemployees

Strengthen and expand
environmental protection
and preservation
activities

Value Creation Strategy

Foundation Supporting Value Creation

Financial Report

Environmental organization
Our medium- and long-term policy and key action items are
discussed and decided in an Environmental Committee chairedby the company president. The Environmental Committee
consists of four subcommittees in the areas of products,
production, and quality. The subcommittees are further broken
down into working groups that promote and manage areas

such as reductions in energy use, waste products, and VOCemissions, and preservation of the environment. In this way,environmental preservation and management activities are
conducted from an expert perspective.
Liaison committees have also been established to share
information with related companies in Japan and abroad.

Environmental organizational structure
Environmental
Committee*

Products andTechnology（Chairperson: Company
president）

Production Technology Environment Subcommittee
Production＊The position of theEnvironmental
Committee within
the organization canbe seen in our
Corporate Governance
Organization Chart(see p. 53)

Products and Technology Environment Subcommittee［Promotes and manages development ofenvironmentally-friendly products and technologies］［Promotes and manages development ofenvironmentally-friendly processes (low waste emissions)］
Production Environment Subcommittee［Promotes and manages technical development measures for
reduced emissions from production processes］

Quality
Assurance

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

Liaison Committee for Environmental Communication with Domestic Afﬁliates［Manages, guides, and supports coordinated environmental
efforts by afﬁliates and suppliers in Japan］
Liaison Committee for Environmental Communication with Overseas Afﬁliates［Manages, guides, and supports coordinated environmental
efforts by afﬁliates in other countries］

Deployment from the Environmental Committee and subcommittees to plants and other operations is done with the establishment of expert
committees in accordance with the ISO 14001 system at each plant.

Risk and opportunity associated with climate change and resource depletion
The risks and opportunities associated withclimate change and resource depletion arerecognized as an important management
issue. We are working to strengthen our
responses to the overall financial and social
risks from the effects on economic andproduction activities of more drastic abnormal
weather, changing precipitation patterns,
droughts and floods, from a global perspective
based on laws, regulations and trends.

ClimatechangeResource
recycling

Risk

Opportunity

Cost increases from carbon tax
and soaring energy prices

Development of lighter weight, nextgeneration automotive parts, cost
reductions from efficient energy use

Effects of water shortages andfloods on production activities

Cost reductions from re-use anddecreased use of water

Cost increases from difficulty
in procuring materials, soaring
material prices

Cost reductions from recycling
technology, use of fewer materials

Management Loss of trust in the company due toenvironmental problems, including（regulatory
legal violations, and insufficientcompliance）
efforts to protect the environment.

Raise brand strength by enhancing
environmental activities

Resource utilization and environmental emissions in business activities
kaizen in efforts to improve through business activities.
The input resources we use include environmentallyfriendly materials and clean energy.

INPUT

OUTPUT

Total material input 45,974t
Plastic
28,154t

Rubber (rubber sheet) 17,820t
Excluding purchased parts, metal and liquid

Total energy input 3,080,000GJ＊1
Purchased electricity 1,560,000GJ   
City gas
1,310,000GJ
LPG
60,000GJ

Heavy oil
Kerosene
LNG
Gasoline

Water resource input 1,380,000㎡
Industrial water 737,000㎡

Products
Emitted into the atmosphereCO2
12,900t-CO2
6 gases
3,000t-CO2
SOx＊3
0t
88t
NOx＊4

Dust
Volume of substances
subject to PRTRVOC＊5emissions

Clean water
268,000㎡
Underground water 375,000㎡

Waste discharge
Landfill wasteIncinerated wasteIndustrial wasteGeneral waste
12t
For-profit disposal by sale 5,464t
Volume of substances
subject to PRTR
61t

＊6 R
 ange of target: 4 plants of Haruhi,
Inazawa, Heiwacho and Seto, Kitajima
Technical Center, Miwa TechnicalCenter and Sun-Court Inoguchi

Wastewater
Total wastewater 890,000㎥
Volume of substances
subject to PRTR
0.15t

10,000GJ
20,000GJ
120,000GJ
1,000GJPRTR＊2 substances usage800t＊1 Gigajoule (1,000,000,000 joules)＊2 Pollutant Release and Transfer Register＊3 Sulfur Oxide＊4 Nitrogen Oxide＊5 Volatile Organic Compounds

Business activities

To lessen the amount of energy, material and other resource
inputs, and maximum product output, we are utilizing our skills
in product development, process development and workplace0t
7t
10,995t

0t
115t
371t

Nitrogen emissions＊6 9.7t
Phosphorus emissions＊6 0.6t
4.8t
COD emissions＊6

37

Environment

Environmental impact in the value chain
From the perspective of preserving the earth, we have
surveyed and disclosed not only GHG emissions (Scope 1＊1,
Scope 2＊2) in our business activities but also emissions
in our entire value chain including excavation of raw
materials and product use and disposal (Scope 3＊3 ). To
increase precision for a more accurate picture, we reviewed
the calculation method and data collection for Scope 3.
＊1 Greenhouse gas emissions emitted directly by the company itself (natural
gas and other fossil fuels, etc.)＊2 Indirectly emitted greenhouse gases (electricity, etc.)＊3 Greenhouse gases emitted in the supply chain that are indirectly emitted by
the company (manufacturing, transport, business travel, commuting, etc.)

CO2 Emissions by Scope Level
FY2018 (Global) 1,976,000t -CO2
Scope 1, 2 543,000t -CO2

・Indirect emissions due to fuel,etc., from factories and other facilities(natural gas, heavy fuel, etc.)
・Indirect emissions associated withuse of purchased electricity, etc.

Scope 3 1,433,000t -CO2

（Other indirect emissions）

Raw materials/capital
goods 1,336,000t -CO2

Employee commutes & business trips 22,000t -CO2
Distribution 44,000t -CO2
Other 31,000t -CO2

Building low-carbon societies
In addition to lighter weight products that lead to improved vehicle fuel efficiency, we are reducing CO2 emissions
through improved productivity and more efficient distribution.

Basic philosophy
Keeping the rise in global temperature to below 2°C, asconcluded in the Paris Agreement, is crucial and we mustachieve greenhouse gas emissions of essentially zero by
the end of the century. With the aim of minimizing CO2
emissions as presented in the TG 2050 Environmental
Challenge, we are utilizing new production techniques
and product development skills with an eye toward next-

generation vehicles in addition to the manufacturing
skills we have cultivated over time. Plans for execution are
included in our 6th Environmental Action Plan with activity
targets for FY2020. We are now formulating our mid-range
targets and scenarios for FY2030. To reduce CO2 emissions
over the entire product lifecycle, we are making efforts toincrease efficiency in distribution and other areas.

Reducing CO2 emissions
The Toyoda Gosei Group is reducing CO2 emissions (per unit sales) in the product stage, production stage, and over theentire lifecycle to achieve the targets set for FY2020.

Product development stage: Environmentally-friendly product development
In the product stage, we are making headway in providing
parts for environmentally-friendly, next-generation
vehicles and developing products with lighter weight for
greater fuel efficiency and lower energy consumption
across the areas of materials technology, product design,and production technology. Examples include switchingmaterials (e.g., from metal or rubber to plastic) in
instrument panel peripherals and other interior products
as well as in functional parts such as hoses, reducing thenumber of components, integrating functions, and using
thinner material while ensuring strength.

Production stage: Reductions with development of new processes, daily kaizen
In the production stage, we are developing new production
techniques that minimize energy usage and introducing
energy-saving equipment through the Production
Engineering Technology Environment Subcommittee
started in fiscal 2016.
We also conduct regular kaizen to thoroughly

eliminate waste. Today, the TG ESCO (expert team that
conducts reduction activities with genchi-genbutsu )formed in 2016 is conducting kaizen activities that include
the latest technologies and collecting and applying
information on best practices from other companies.

Recycling: Reductions in materials and parts procurement, more efficient distribution
Toyoda Gosei has prepared and distributed green
procurement guidelines for materials and partsprocurement with low environmental impact. Together
with regular supplier surveys to ensure compliance, we
also provide support when improvements are needed.

38

We are also making active efforts to reduce CO 2
emissions over the lifecycle with more efficient
distribution, including reviews of truck allocation andtransport modes with the aim of improving truck payloads
and shortening distribution lines.

Value Creation Strategy

Foundation Supporting Value Creation

Financial Report

Renewable energy
We are moving toward a target of using renewableenergy equivalent to 2% of our total global electricity
consumption by FY2020. This includes installation of solar

and wind clean energy generation equipment and thepurchase of green power. Our next challenge is to raiseclean energy levels to at least 20% globally by FY2030.

CO2 emissions, CO2 emissions per sales unit (index) ＊430

Target12％50

decrease vs.

FY20120

2012（Base year）

2015

2016

2017

85

15.4

12.9

FY2012

Target
17％

100

50

FY20122012（Base year）

2015

2016

2017

0
2020（Fiscal year）

2018

50

decrease vs.

FY2012

0

2012

2015

2016

2017

0
2020（Fiscal year）

2018

Toyoda Gosei Co., Ltd.

decrease vs.

0

Target15％（Range: delivery distribution, intra-process distribution, procurement distribution）（12.8）

10

10

CO2 emissions in distribution, CO2 emissions per sales unit (index) ＊4

decrease vs.

20

69
14.5

17.3

（Base year）

Target17％

Toyoda Gosei Co., Ltd.
Emissions（10,000t CO 2）02020（Fiscal year）

2018

100

94

2.0

Target8％50

decrease vs.

FY20120

2012（Base year）＊4 Emissions per sales unit (index) is a figure obtained taking FY2012 as 100   【CO2 conversion factor】
   The CO2 conversion factors used for Japan ＊5 are the 1990 Keidanren factors.
   The CO2 conversion factors used for other countries are from the GHG
Protocol (2001).

1.34

1.07

1.0

100

2015

2016

2017

0
2020（Fiscal year）

2018

Emissions per sales unit (index)

54.3

20

Emissions（10,000t CO 2）

49.4

Emissions（10,000t CO 2）

83

Emissions per sales unit (index)

Emissions（10,000t CO 2）

100

Emissions per sales unit (index)

Japan, consolidated

60

Emissions per sales unit (index)

Global, consolidated＊5 Electricity: 0.3707t-CO2/MWh, class A fuel oil: 2.69577t-CO2/kL, 
LPG: 3.00397t-CO2/t, town gas: 2.15701t-CO2/1,000 Nm³, kerosene: 2.53155 t-CO2/ kL, LNG: 2.68682t-CO2/t, gasoline: 2.36063t-CO2/kL (excluding external factors of gas companies’ town
gas heat conversion)

Solar power generation graph（does not include stand-alone systems such as outside lights with solar panels）

0
2007 2010 2011 2012 2013 2014 2015 2016 2017 2018（Fiscal year）

6,000

15,000
TianjinTG

4,000

10,000ZhangjiagangTG

2,000
0

7,247
Foshan
TGP

2007

5,000
TGRT
915kW

Total generation capacity (kW)Bisai Plant

200

Generation capacity (kW)293

Total generation capacity (kW)400

TG East Japan Co., Ltd.
(Miyagi)

Heiwacho Plant

Kitajima Technical Center

Overseas afﬁliates

Morimachi
Plant

0Haruhi Plant Safety Office50

Miyoshi Distribution Center

Generation capacity (kW)100

Sun Court Inoguchi

Japan, consolidated

2010 2011 2012 2013 2014 2015 2016 2017 2018（Fiscal year）

Reductions in 6 greenhouse gases ＊ 6＊6 Hydrofluorocarbon (HFC), perfluorocarbon (PFC), sulfur hexafluoride(SF6), methane (CH4), nitrous oxide (N2O), nitrogen trifluoride (NF3)

Trend in greenhouse gas (6 gases) emissions (CO2 equivalents)
Toyoda Gosei Co., Ltd.
Emissions（10,000t CO 2）

Of the six greenhouse gases, Toyoda Gosei Co., Ltd. uses
three (HFC, PFC, SF6) and is conducting activities to reduce
all of them. By FY2015 we had completed a switch toalternative gases with a low environmental impact for theshield gas used in the production of steering wheel coresand other gases. This has resulted in an 74% decrease ingreenhouse gases since FY2012. We will continue these
reduction activities in the future.

2.0
Target62％

1.3

decrease vs.

FY2012

1.0

0

2012

（Base year）

2015

2016

2017

0.3

(0.5)

2018

2020（Fiscal year）

39

Environment

Building Recycling Societies
Toyoda Gosei uses resources effectively and contributes to a recycling society by reducing waste volumes ＊1 and water usage
and designing products that are easily recyclable.
＊1 We are currently attempting to reduce waste volumes to meet our FY2020 target as we move toward minimization of industrial waste as set forth in the TG
2050 Environmental Challenge.

Basic philosophy
To move closer to the recycling society envisioned in the
TG 2050 Environmental Challenge, Toyoda Gosei aims
to minimize industrial waste and water usage and we aremaking every effort to use resources effectively, reducing
materials usage and waste volumes through thoroughsorting and the design of easily recyclable products.

Frequent water shortages and floods have become amajor problem in all parts of the world. We are attempting
to identify these risks in every country and region where
we have operations while also striving to give back to thecommunity by reducing water usage, recycling water, andreleasing cleaner wastewater.

Waste reduction
Production To reduce waste in production processes andachieve our 2020 targets, we are combating waste at its
source and recycling.
We have also started a waste reduction project withcoordination among plants and production technology,
materials technology, and product design departments tostrengthen efforts to combat waste at its source. At eachplant, we are reducing waste through genchi-genbutsu(go and see), identifying items for reduction with the helpof external experts, and implementing rubber, plastic, andliquid reductions.
Study sessions are also held to promote waste reduction
at both domestic and international Group companies.
Distribution The packing material used in producttransport is being reduced to prevent products frombeing dirtied by increasing the number of times reusable

containers are used in the field and maintaining cleanliness.
We are also reducing packing material by putting lids
on reusable containers and other changes, considering
the balance between maintaining product quality andreducing the use of packing materials.
Amounts of waste generated and disposed of（results for FY2018: Toyoda Gosei）
Amount ofcompensated recycling(payment received)
5,464tAmount of internal reuse 2,333t

Amountof waste
11,002t〈100%〉

Amount of
landﬁll
waste
0t
〈0%〉

Amount ofincinerated
waste
7t〈0.1%〉

Amount ofpaid recycling(payment made)
10,995t〈99.9%〉
Numbers in parentheses are
the proportion of discarded
materials volume

decrease vs.

12,331 FY2012
0

2012（Base year）

2015

2016

2017

2018

0
2020（Fiscal year）

Target6％

Overseas afﬁliates
60,000
Amount of waste (t)50decrease vs.

FY201340,00045

20,0002013（Base year）

2015

2016

2017

2018

decrease vs.

50

FY20120

2012（Base year）

2015

2016

2017

Toyoda Gosei Co., Ltd.
150

50

21,9950

11,002 Target
12％

10,0002018

02020（Fiscal year）

Amount of distribution packing material used/Amount used per sales unit (index)＊3

100

36,691

12,84402020（Fiscal year）

102 ※4

1,000

100

740

925
Target8％500

50decrease vs.

FY20120

2012（Base year）

2015

2016

2017

2018

0
2020（Fiscal year）

Amount used per sales unit (index)

10,000

Amount used (t)Target
10％

100

87

Waste volume per sales unit (index)

71

14,223

Toyoda Gosei Co., Ltd.
20,000
Amount of waste (t)100

Waste volume per sales unit (index)

Amount of waste (t)Japan, consolidated
20,000Waste volume per sales unit (index)

Waste volume, waste volume per sales unit (index) ＊2＊2 The amount of waste per sales unit (index) is a figure obtained taking the base year as 100＊3 The amount of distribution packing material used per sales unit (index) is a figure obtained taking the base year as 100＊4 The amount of packing material used increased with increased shipments of service parts due to the heavy rains and floods in northern Kyushu in 2017 and westernJapan in 2018, and larger part sizes.

40

Value Creation Strategy

Foundation Supporting Value Creation

Financial Report

Decreased water usage
To achieve the 2020 targets, we are working on kaizen
through TG ESCO (expert team that conducts reduction
activities with genchi-genbutsu ) activities. Today, water
use has been reduced 24% compared with FY2012 levels
by decreasing loss and leakage in water use amounts.
Wastewater treatment facilities are also being

systematically upgraded to improve our processing ability
so that wastewater is cleaner and the water recycling
rate is higher. We will continue to reduce water usage
and manage wastewater in correspondence with local
conditions, given the increasing importance of water.

Water use and water use per sales unit (index) ＊5
Japan, consolidated

260

63

200

199
0

2012

（Base year）

2015

2016

2017

2018

Target8％

decrease vs.

50

FY201202020（Fiscal year）

66
202
194
2012

2015

Target8％

decrease vs.

50

FY2012

0

2012

2015

2016

2017

2018

0
2020（Fiscal year）

2016

2017

2018

Target8％

decrease vs.

50

FY201202020（Fiscal year）

Water use per sales unit (index)

Water use (10,000 t)

100（Base year）

138

100

＊5 W
 ater use per sales unit (index) is a figure obtained taking the base year as 100

400

0

100

76

184

（Base year）

Overseas afﬁliates

200

200

Water use per sales unit (index)

100

Water use (10,000 t)

Water use (10,000 t)

400

Water use per sales unit (index)

Toyoda Gosei Co., Ltd.

Environmental management
While working for environmental preservation, we are continuing employee training and education programs so that every
employee can act with awareness of the environment.

Basic philosophy
Together with attempts to strengthen selection and control
of chemical substances for the creation of products andprocesses that are friendly to people and the environment,
we faithfully comply with laws and regulations in eachcountry and customer criteria.
We are also making aggressive efforts for education toraise the environmental awareness of employees and train
personnel for sustainable environmental activities.

Control of chemical substances contained in products
To strengthen the management of chemical substancesin our products, we control legally regulated substancesin each country, substances that are self-regulated byautomakers, and substances covered by our own company
regulations. We watch the trends in European REACH ＊6
regulations and the EU RoHS Directive＊7 and have asystem in place to respond rapidly when these regulations

are revised. To respond to requests from automakers ineach country for information on chemical substances in
products, we have devised mechanisms and conductedsystems for global collective management of chemical
substances that we are currently using in Japan, China,
Thailand and Vietnam. We will be steadily expanding thissystem to places where it is not yet in use.

＊6 Registration, Evaluation, Authorization and Restriction of Chemicals＊7 Restrictions on the use of specific hazardous substances contained in electrical and electronic equipment

41

Environment

ISO 14001 environmental audit

ISO14001-certified production sites

Toyoda Gosei and its domestic and international affiliates
acquire ISO 14001 environmental management system
certification. Internal environmental audits are carriedout by audit teams composed of members from businessareas outside those being audited in order to raise theindependence and objectivity of the audits. Toyoda Gosei
Co., Ltd. commissions external reviews by the Japan
Quality Assurance Organization (JQA) to assess whether
our environmental management systems are run properlyin accordance with ISO14001.

Toyoda Gosei

10 plants* (FY2018)

Affiliates in Japan

9 companies

Overseas Affiliates

Americas: 12 companies, Asia: 7
companies, China: 6 companies,
Europe/ Africa: 3 companies＊ Currently 7 companies after establishing a subsidiary in Kyushu (Toyoda
Gosei Kyushu Co., Ltd.) and transferring business from 3 Toyoda Gosei
plants in Kyushu (Fukuoka Plant, Saga Plant, Kitakyushu Plant) (April
2019)

Activities to eliminate compliance and environmental violations and complaints
Regular checks are conducted by expert departments andmaintenance and management are carried out to ensure
legal compliance and no environmental problems orcomplaints. Preventive activities such as environmental
preservation walks are also conducted to combat risks.
In addition, we analyze problems that occur at othercompanies, inspect similar facilities including those atdomestic and international affiliates, and take preventive
measures.
We are ensuring proper disposal of equipment
containing polychlorinated biphenyl (PCB). So far, wehave completed disposal of waste from 848 units. We arecontinuing these efforts to dispose of untreated low-level
PCB waste at an early date.

Environmental education
Toyoda Gosei educates employees on environmental
problems including the destruction of natureand environmental pollution, the impacts on theenvironment of production activities, and compliancewith environmental regulations. The content each year
emphasizes understanding and practices based on legal
trends, with examples incorporated to create specific andunderstandable teaching materials.

Environmental education system
Level-speciﬁc training

ISO Education

Afﬁliate Companies

Toyoda Gosei

Japan

Overseas

Toyoda Gosei

Afﬁliate Companies
Japan

Education for new managers

Education for environmental staff

Education for those posted overseas

Education to improve internal auditors’ skills

Overseas

Education to register internal auditors

Education for environmental key persons

Education for supervising managers

Acquisition of environmental education qualiﬁcations

Education for key environmental facility workers

Education for new employees

Education for general workers

Activities to raise environmental awarenessWe are attempting to raise the environmental awarenessof employees through Environment Month events, regularenvironmental lectures, and other activities so that all
employees have an awareness of the environment in their

Environment Month
Environmental exhibition

42

Environment Month: Seeking
Mottainai Ideas
Don’t you have more mottainai ?

activities for ongoing environmental protection.
We also conduct a questionnaire survey of employees
each year to assess their environmental awareness andplan educational activities based on the results.

Environment Month Eco tours(observation of living creatures)

Environmental forum
Instructor: Taikan Oki, Special Adviser to the
President, The University of Tokyo

Value Creation Strategy

Foundation Supporting Value Creation

Financial Report

Other important issues
With awareness of environmental issues, every employee makes efforts to preserve the environment while recognizing theimportance of protecting nature and biodiversity and contributing to the creation of environmentally-friendly societies.

Reduced use of substances of concern
In production processes, we are switching to water-based
paint and release agents, making painting lines morecompact, improving coating efficiency, and making otherefforts to reduce Pollutant Release and Transfer Register(PRTR) substances and volatile organic compounds(VOCs).
Through on-site visits, we also share information on
cases in which VOCs were successfully decreased topromote reduction activities.

Volumes and flow of emitted PRTR substances（Unit: t）

Atmospheric emissions
115

Recycled
28

Chemical
substances
handled800

Products
429

Released Released
Released
into
into
into soil
waterways sewers
0
0.15
0

Amounttransferred
as waste
61

Disposal(amount
treated)167

VOC emissions/emissions per sales unit (index) ＊3

70

454

Target
6％

250

0

389

2012

（Base year）

2015

2016

2017

decrease vs.

50

FY201202020（Fiscal year）

2018

500
Emissions (t)Emissions (t)

100

100

89

427

371

250

Target6％

decrease vs.

50

FY20120

2012（Base year）

2015

2016

2017

2018

0
2020（Fiscal year）

Emissions per sales unit (index)

Toyoda Gosei Co., Ltd.

500

Emissions per sales unit (index)

Japan, consolidated＊ Emissions per sales unit (index) is a figure obtained taking FY2012 as 100

Biodiversity
The Toyoda Gosei Group is working actively to protect
nature and create environmentally-friendly societies
through our plant afforestation project, biotope creationand environmental education.

Mid-range plan for 2020

Plant afforestation

We have drafted a mid-range plan for biodiversity
activities and are carrying out these activities with theslogan “Working to save our water, the source of life onearth.”
Working to save our water, the source of life on earth
Efforts to protect the water used at our plants from its source (mountains) to its destination (sea)Breeding endangered creaturesProtecting rare species in biotopes From FY2017
Plant afforestation
Biotope creation●Creation of biotopes inregulating ponds Heiwacho Plant(Completed in November 2018)●●

Abundant water with abundant forests“Toyoda Gosei Kimori no Sato ”
for woodland Creation
From FY2019●

Clearing undergrowth (scheduled for June, October)Protecting local aquatic life

Eradicating non-native species From FY2018
Eradication of lance-leaved coreopsis (June)
Environmental education through nature observation● Eco tour (June)●

We will further enhance these activities in coordination
with the Toyota Group, government agencies, NPOs andothers.

Fostering organisms inclean and beautiful seas

Environmental
preservation in tidal ﬂats
From FY2018●

Preservation of Fujimae
Tidal Flats (May, October)

Our plant afforestation project
was begun in 2009, and we havesince planted about 300,000
trees at 28 locations around theworld. The seedlings planted inthese activities are grown in thecompany.

TG Automotive Sealing Kentucky,
LLC, / USA
Tree planting in October 2018.

Biotope creation
We are creating biotopes suited
to each area around the world. To
make it easier to secure the spaceand minimize costs, we have beencreating biotopes in regulating
ponds in coordination withgovernment agencies and others.

Completion of biotope using a
regulating pond* (Heiwacho)＊ Basins are made in residential areas, industrial plants, and similar places.
They function to limit local flooding by temporarily storing rainwater
during torrential rains.

43SocialDeveloping personnel who can thrive in achanging environment, and contributing to society
through manufacturing
As a good corporate citizen, the Toyoda Gosei Group aims to contribute todevelopment of the economy and society through business activities rooted
in each country and community and social contribution activities. To build
a foundation for those endeavors, we are developing professionals who canact globally and promoting diversity and workstyle reforms. We respect theindividuality of each person while increasing our collective strength throughteamwork to achieve a vibrant corporate culture with meaningful work. We
will continue to conduct research and development in anticipation of futurechanges, raise the level of our manufacturing technology, strengthen our
supply chain and make constant kaizen efforts to satisfy our customers.

Hiromasa Zaitsu

Chief of General Administration and Human Resources Headquarters

We are striving to create workplaces that are pleasant and conducive to producing good results,
with the following key performance indicators.
Classification

1

2

3

Creating
pleasant
workplaceenvironments

Promotingdiversity

Personnel
development

Target

FY2018 results

Employee turnover rate

Item

Less than 3.0%

1.2%

Average overtime hours

Less than 20 h/month

18.6 h/month

95% or higher

97.1%

30/yearStarting from FY2019

Effective January 2020

Smoking prohibited
during working hours

Annual paid leave taking rate
Number of people promoted from non-regular
to regular employees
Smoking prohibited on company premises
No. of female managers

18

16

Percentage of women among new employees

20％

21%

Men: 8%
Women: 100%

Men: 4%
Women: 100%

No. of foreign national employees

30

22

Employment rate of people with disabilities

2.2%

2.33%

Number of young employees sent overseas for development

40

22

Percentage who have taken level-specific in-house training

100% of those targeted99%

Successful execution of young employee 3-year
independence plans

100%

Currently being implemented intechnical departments. Implemented
company-wide from 2019.

Superior and subordinate self-reporting interview rate

100%

97%

Childcare leave taking rate

Workstyle and cultural reforms
From FY2017 we began efforts to make work more
efficient with the use of IT and reviews of meeting
structures with the aim of every employee thoroughly
executing his or her essential tasks. Overall activities
entailing a range of efforts to change the way we work are
conducted for workstyle reforms. To deal with changes
with a sense of speed and raise the quality of work, weare communicating more closely than ever before in theworkplace, eliminating waste, and adopting a working
style with a varied pace.

44

The keys of workstyle reforms
Changing our wayof thinking
Correction oflong working hours andlabor compliance

Increased work
efﬁciency

Work culture reforms
Creation of a workplace culture where
people are free to exchange all opinions

Two-way
communication

Active bottom-up
proposalsValue Creation Strategy

Conference on workstyle reform and better communication

Work culture reform presentation

Examples of workstyle reform activities
Perspective

Item

Foundation Supporting Value Creation

Financial Report

Activity promotion character Kaikakuma(selected from employee submissions)

Trials of flexible work styles
Efforts

11:00 to 12:00 each day is set as “concentration time” (asConcentration on Establishment of aa rule, NO meetings, NO telephoning, NO instruction.
concentration timeessential work
Workers are notified with music played at 11:00 a.m.)●

Abolishment of preliminary meetings, minimization of
the number of participants, time, and frequency
Thorough reinforcement in observing company rules
and etiquette●

Review of meeting
structure●Glassed-in meeting spaces are set up in the center of the floor

Arrangements,
meetings forbidden Going beyond the fixed time every Wednesday andfrom going beyond Friday is forbidden as a rule
the fixed time●

Increased work
efficiency

Work kaizen using
IT tools

As one part of our workstyle reforms, the following trials arebeing undertaken in FY2019 for employees who are raising
young children, caring for elderly or invalid persons, orreceiving medical treatment.
❶ Work from home
By making it possible to work from home, we provide anenvironment where people can balance work and life,
display their abilities, and do their jobs efficiently.
❷ Flexible, shorter working hours
We have reviewed our previous system of short working
hours and are conducting a trial allowing flexible, shortworking hours suited to the individual’s job and lifestyle.

Reduction of travel time, increased work speed(introduction of mobile teleconferences, etc.)
Task automation with RPA*1●●

Promotion of
Departments conduct efforts with a “Reform leader”
workplace-centered playing a central role for each workplace, and sharereforms
information●

Workstyle withvaried pace

Encouraging people
to take annual
vacation

Encourage general workplace employees to take fullannual leave and 3-day weekends
Set annual vacation targets for key positions andmonitor whether this vacation is taken●●*1 Robotic process automation

Example of workplace reform activities

TG NEWS J u l y 2 0 1 9

Five Articles for Officers

1. I will greet people with a smile
2. I will listen to team members talk until they are finished.
3. I will say “I appreciate your efforts” for positive informationfrom team members, and “Thank you” for negative information.
4. I will back team members who take on challenges, andassume responsibility.
5. I will try to make myself better understood.

We aim to create an environment in which employees can discuss
anything freely with each other, with officers themselves leadingthese changes (this year is 4th year)

7

Toyoda Gosei Group Ekiden race (suppliers/affiliates also participate)

Respect for human rights
Respect for individual human rights and privacy both inand out of work are set in employee behavioral guidelines
in the Toyoda Gosei Guidelines for Business Ethics. We
are striving to create healthy and pleasant workplaces

where the character and individuality of each person isrespected and that are free of discriminatory behavior,sexual harassment and power harassment.

Human rights education
In both new employee education and new manager
training, we provide education on human rights.
Employees learn about the current problems in humanrights, so that they can act with increased awarenessand respect for human rights and privacy both during

and outside of their work. Personnel are sent to external
training to learn in greater depth about rights problems.
In these and other ways we are trying to train people witha superior sense of human rights.

45

SocialHiring of diverse personnel
Toyoda Gosei hires a diverse workforce and is making efforts to energize the company. We are creating anenvironment for fair and equal employment and training with respect for diversity.

Encouraging the active roles of women

Workplaces that welcome people with disabilities

A special organization established in 2010 has been
active in the three key areas of (1) training and support
for the active roles of female leaders, (2) reforming theattitudes and behaviors of superiors, and (3) creating a fairworkplace culture. Our aim is to create a situation in which
all people, regardless of sex, can be active and grow in a fairenvironment. A working group of management volunteers
was started in 2018 and has begun working to raise themanagement level. The group is reviewing the work styles
of managers with the themes of promoting the active rolesof diverse employees and the work-life balance of managers
themselves and their subordinates. “Tea meetings” arealso held to listen to the troubles and thoughts of female
employees andstrengthen personalconnections. Together
with creating anenvironment where
people can work forlong times with asense of security, there
is also support for
Workplace reform management classcareer advancement.

We view the hiring of persons with disabilities as asocial responsibility, and make active efforts in thisarea. The Committee for Employment of People with
Disabilities plays a central role in hiring, job assignments,
education of managers and supervisors, establishmentof stable positions, and awareness. We place particularemphasis on helping persons with disabilities establish
stable positions, monitoring conditions through regularcare interviews and improving the work environment
by identifying where they face problems. The entire
Toyoda Gosei Group holds seminars on people withdisabilities to share information and create educational
opportunities. Work that people with disabilities canperform is identified, and they are systematically hired
and placed. In FY2018, 121 people with disabilities were
hired (as of January
1, 2019). This was ahiring rate of 2.33%,
exceeding our target(legally mandated
employment rate
Communication with sign language in the workplace≥2.2%).

What we want for each person(%)

To be active and grow as an employee who can work
energetically and produce results in an open and fairenvironment.

Reforming theattitudes andbehaviors of superiors

3

2.08%

2

Creatinga workplacecultureTarget values for 2020

❶ Women account for at least 20% of new graduates hired(office, technical positions)❷ Women occupy at least three times more key positions(compared with 2014)

2.14%

2.41%

2.38%

Legally mandated rate
1

Three key priority measures for activity
Training and support
for the active roles offemale employees

Changes in employment rate for people with disabilities(Toyoda Gosei Co., Ltd.)

2014

2015

2016

2017

2.33%
2.2%
2018（Fiscal year）

Creation of an environment for stable
work after retirement
We have established an environment so that employees
can work with assurance after retirement in a postretirement rehiring system. Many people can make useof their high levels of skill and experience after they are
rehired. A system of reduced working days and working
hours supports working styles for a good work-life balance.
Trend in cumulative number of re-employed retirees（Persons）

500

400

329

347

348

373

2014

2015

2016

2017

429

300
200
100
0

46

2018（Fiscal year）

Value Creation Strategy

Foundation Supporting Value Creation

Financial Report

Work-life balance
Toyoda Gosei Co., Ltd. is adopting a system wherein each
employee can select a working style with considerationof work-life balance, supporting employees so thatthey can work with a sense of security and motivation.
Support to balance childcare and work includes systems
for shorter working hours and holiday day-care, plus
working parent networking events. For these efforts wehave been certified by the Ministry of Health, Labor andWelfare as a “Childcare Support Corporation.” For nursing
care support we are also undertaking activities to increaseknowledge and familiarize employeeswith our systems. We have establishednew systems for reduced days or reduced
working hours so that patients canundergo treatment for disease while
continuing to work, and for a balance “Kurumin”
Next-Generation Nurturing
Support certification markbetween medical care and work.

We will provide education for the creation of
workplace environments where people can use thesesystems without hesitation, while continuing to enhance
our support and policies.
Childcare leave

Care leave

Reduced working hours

61

5

77＊1

FY2018＊1 Childcare 69 /nursing care 5 /medical treatment 3

Holiday day-care

Working parent networking meeting(support for childcare-work balance)

Personnel development
A global workforce of employees who
think and act independently

Framework for personnel development that supports growth

To raise the collective strength of Toyoda Gosei globally,
we are striving to develop people who can contribute tothat end and to create workplace environments where
each employee can display his or her full abilities.
Personnel who can play active roles globally
Personnel who arein universal demand

Personnel who are in demand
from the business environment

In the Toyoda Gosei Group, our personnel management
system features aspiration interviews and visualizationof mid- and long-term career design for each employee,
as well as rotation of young employees so that theyexperience a wide range of work. We are also enhancing
our level-specific and specialty training to give employees
opportunities to acquire needed abilities and skills.
Personnel development cycle
Career design

Aspiration interview

Ability to makemanufacturing innovations

Ability to produce
high added value

Ability to create
innovations

Professionalism andhigh levels of skill

Ability to play an active role
anywhere in the world

Ability to transmit skills
and techniques globally

Employees consider theirown career plan based on
career visions for eachdepartment

Appointment /rotation
Experience of otherareas, appointment topositions from a young age

Superiors and subordinates
discuss challenges for
growth to help individuals
ﬁnd a mission and vision ofwhat they would like to be

Personal
growthBasic competencies needed in business1. Problem-solving
ability

to work
2. Ability
in teams

3. Basic skills

TG Spirit (Toyoda Gosei Group’s shared values toward work)

Young employee
overseas training transfer
A program for young
employees to workwith local staff whilelearning the language
and culture

EvaluationOJT OFF-JT

Fair, equitable and open
evaluations andperformance reviews

Personnel development through on-the-job
training (OJT) . Skills improvement throughin-house training by rank and role (OFF-JT)

Enhanced training programs, invigorated personnel development
A broad range of efforts based on individual career
visions are underway, including measures and study
programs in Japan to develop people who can perform
globally and next generation leaders, and personnel

development
programs
for all global
employees.
Overseas middle management training

47

SocialLevel-specific education system
International

Domestic
Office, technical workers

Skilled workers

GLDP

Division
General Manager

GED

Department General
Manager, Division Deputy
General Manager

New Department Deputy
General Manager training

Group Manager,
Section Manager

New Group Manager training New Section Manager training

Assistant Manager,
Supervisor

New Division AssistantManager training

New Supervisor
training

Midlevel employees

Midlevel
employee training

New Team Leader training
Midlevel Leader training program

Second-year / Third-year training

Second-year training

Global Leadership Development Program

Global Executive Development

GES

Global Executive Seminar

MMT

Middle Management Training

TWI-JI, JM, JR

Overseas Training for Supervisor

New Division General Manager training

New Manager training

New employees

New employee training

Training manufacturing personnel
With the aim of strengthening our production floors, thesource of our competitiveness as a manufacturing company,
we are enhancing technical education for employees of eachlevel working at manufacturing sites and in each field ofexpertise. Technical education spanning four months wasprovided to 61 skilled workers who joined the company in April
2019. Following training in safety basics on the production
floor (danger simulations) and basic manufacturing education
including practical training in die maintenance, fabricationof two-legged walking robots, and disassembling andreassembling automobiles, they received practical training on
a manufacturing shop floor for three months.

New employee training

Aiming for “Zero Accidents”
Toyoda Gosei Co., Ltd. aims for zero accidents throughSafe Personnel and Safe Workplace programs, with thepresident overseeing all efforts as the company’s general
health and safety manager.
The FY2018 Safe Personnel program focused onholding handrails on stairs and stopping and checking inboth directions at stop points on walkways within plants
as keys for worker safety. We are trying to maintain theserules and raise compliance by posting guards.
In Safe Workplace activities we aim to improve thesafety of high risk equipment where serious accidents(STOP 7) can occur. Risk assessments incorporating areverse KY (kiken yochi , or hazard prediction) approach
are conducted and measures are implemented with aclear priority order.
Trends in rate of work accidents(rate of injuries resulting in lost work time)(%)

Rate of injuries resulting in lost work time＝

No. of casualties in occupational accidents
Total work hours

×1 million

1.5
Whole manufacturing industry

1.20

1.0
Transportation equipment industry

0.5
Toyoda Gosei
Co., Ltd.
Sentinel activity

48

0

2014

2015

0.54

0.062
2016

2017

2018 （Years）

Value Creation Strategy

Foundation Supporting Value Creation

Financial Report

Maintaining and improving mental and physical health
Toyoda Gosei implements measures to maintain and promote employees’ mental and physical health.

Mental health activities

Health education system

Toyoda Gosei Co., Ltd. provides regular mental healtheducation for workers of each level, with emphasis on
managers and supervisors to encourage managementwith a view to mental health in the workplace and smoothcommunication. A bimonthly mental health bulletin is also
distributed to all workers to improve self-care abilities. In
each place of business, counseling is provided by in-houseoccupational health nurses, medical nurses and externalcounselors to maintain and promote mental health.

Physical health activities
Together with various types of educational activity to maintainand promote health, health classes are held for employees atmilestone ages with the aim of preventing lifestyle-relateddiseases. We are also putting effort into smoking cessation forsmokers, and plan to implement a total ban on smoking on
company premises starting in January 2020.
These activities and other efforts to consider employee
health management from the perspective of company
operation were recognized in February 2018 withcertification as an “Outstanding Health Management
Corporation—White 500” by the Ministry of Economy,
Trade and Industry and the Nippon Kenko Kaigi. ＊Department
Division
General Manager,
GeneralDivision Deputy
Manager
General Manager

Group
Manager,
SectionManager

AssistantManager,Supervisor

Section Generalleaders employees

Milestone age (35, 45 years old) health education/
locomotive syndrome prevention seminar

Manager’s mental health(follow-up) education

Assistantmanager /supervisor mental
health education

Mental healthdepartment deputy
general manager
education

Health seminar＊ Nippon Kenko Kaigi: An organization formed to conduct effective activities
in conjunction with private organizations and the full support of government
agencies, in order to increase healthy lifespan and proper medical care for each
person in Japan as the population rapidly ages and there are fewer children.

2019

Health exhibit

Uniform global quality assurance
Toyoda Gosei ensures quality in all business activities, fromdevelopment to production, based on our basic quality
policy. Every one of our plants has obtained certification in
the ISO 9001 (JQA-QM7318/QMA11826/QMA12841) andIATF16949 (JQA-AU124) international standards for quality
management systems. Each plant also sets its own quality
control goals for production. These goals are based on theprinciples of Total Quality Management, or TQM— activities
designed to enhance the quality of products, work, andmanagement, and increase the dynamism of individuals
and organizations, through constant improvement and theparticipation of all based on the “Customer First” principle.
In addition, all Group companies use our Quality System
Global Standards, which incorporate quality improvementwith rules and know-how to ensure quality.

Fundamental principles of TQM

Customer
first

TQM
Constant
improvement

Participationby all49

SocialMonitoring and responding to manufacturing processes and market quality
Defect-free process completion is carried out inproduction and other processes for parts involved in
the basic automotive functions of running, turning, andstopping, as these parts are directly linked to safety. We
want the Toyoda Gosei name to equal quality in theminds of customers worldwide. For this purpose, we
advance quality assurance declaration activities at all
production locations. This means that all employees
make efforts to improve safety and the people in charge of
all manufacturing processes improve quality through thedevelopment of people and processes. When a mechanismthat can ensure the target quality has been completed andis in place, the manager makes an “assurance declaration”
to the president or site manager. The president or sitemanager then conducts a site inspection. Through“jidoka,” we improve quality by creating processes that
do not produce or pass on any defects and developing
workers with a high sensitivity to safety and to avoiding
mistakes. We also have fulltime auditors who audit andimprove processes at all production sites globally.
A system is in place so that whenever a quality problem
occurs in the market, we can quickly investigate the causes
based on information from automakers and implement
prevention measures. When it is difficult to pinpoint thecause of a problem and develop solutions internally,
we work with the quality departments of automakers totake precise measures to prevent recurrence based on
inspections with test vehicles and other means. In thisway we prevent such quality defects from occurring in thenext products.

Supply chain management
We aim to deepen, grow and develop our partnership with suppliers based on our basic procurement policy.

Basic procurement policy
1. Optimum global
procurement

2. Mutual growth based on
mutual trust

3. T horough environmental
protection and legal complianceIn the process of procuring product materials,
products and parts, production equipment, dies/molds and other goods needed for our business,
we conduct comprehensive assessments ofsuppliers from a global perspective. This includes
quality, cost, volume/delivery, technology, and the
supplier’s attitude to continuous improvement.
We do our utmost to make purchases in a fair andopen manner.
We also welcome proposals from suppliers for
new technologies and methods and new products.

We want to grow together with ourbusiness partners through dealings
based on a long-term vision. To
this end we work to build strong
relationships of trust through close
communication with suppliers.

We do our utmost to ensure environmental
protection and legal compliance in all
our development, design, and production
activities. In procurement we follow
the principles of purchasing items withminimal environmental impact andconducting our activities in ways that
reduce environmental impacts.
We also exercise extreme care for fulllegal compliance and confidentiality inrelation to our procurement activities.

Support for suppliers
We support strong supplier structures with “genchigenbutsu” (go-and-see activities), and work for their
growth. In addition to standardized work and defectprevention to avoid serious quality problems, andlowering of cost prices for higher competitiveness, weinvolve suppliers in mold and product design. Throughsectional committee activities we share informationnecessary for quality improvements with suppliers. We
also conduct checks and risk assessment for compliancewith Japan’s Industrial Safety and Health Act to help
support the creation of safe workplaces and prevent fires
and disasters.

Green procurement
We do our utmost for environmentally-friendly
procurement based on our Green Procurement Guidelines(4 th Edition), which consist of three components:
establishing environmental management systems;
improving regulatory compliance and environmental
performance; and managing harmful substances. To reduce
environmental impacts, we strive to enhance suppliers’
internal organizations and systems and raise the levelof their production activities. Positive results have been

50

achieved, such as acquisition of ISO 14001 certification andreduction of energy consumption and waste. We comply
with increasingly strict chemical substance regulations
around the world and monitor the chemicals containedin items procured from suppliers. We also coordinate
with suppliers in complying with European ELV (endof-life vehicle) and REACH (Registration, Evaluation,
Authorization and Restriction of Chemicals) regulations,and in the management of volatile organic compounds.

Value Creation Strategy

Foundation Supporting Value Creation

Financial Report

Collaboration with suppliers
Our partnerships with suppliers are very important to
us for smooth business operations. Every April, Toyoda
Gosei Co., Ltd. holds a procurement policy briefing with
about 200 suppliers of products, machining processes,
materials, facilities, and molds. We inform suppliers ofupcoming issues and efforts, including our businessenvironment and direction, and share our procurement
policy for the year with regard to safety, quality, delivery,
price, technology, global expansion and CSR. We also
give awards to show our appreciation to suppliers forachievements in their fields, while encouraging all
suppliers to continue making progress. Every quarter,
we hold a procurement liaison meeting with about 100

suppliers, where we share production information andinformation on quality improvements, compliance,
safety, earthquake measures, confidentiality, chemical
substance control and human resources development.

Procurement policy briefing, Japan

Procurement policy briefing, China

Contributing to local communities
The Toyoda Gosei Group wants to earn the trust ofsociety through all its business activities, including thedevelopment and manufacture of products that satisfy
customers worldwide, environmental preservation,and social contribution. TG Group companies and theirSocial Welfare

Introduction of fund-raising meals
in cafeterias

Environmental Preservation

Wheelchair repair in welfare institutions

Youth Development

Support for Boys and Girls Invention Club

employees around the world are making efforts tocontribute to their communities in the four areas of social
welfare, environmental preservation, youth development,
and community safety, and grow together with strong
local roots.

Environmental education for elementary
school students

A total of more than 300,000 trees
planted domestically and internationally

Community Safety

Sports clinics

Anti-crime patrols

Traffic safety patrols

Sports Promotion
Since winning their first league
championship in 2015, the Trefuerza
volleyball team (currently, Nagoya
Wolfdogs) has been in contention for
the top spot every year. Our handballand basketball teams are also activein Japanese domestic leagues.
Trefuerza volleyball team(currently, Nagoya Wolfdogs)

Blue Falcons handball team

Scorpions basketball team51

Governance
Building and operating transparent management
systems for thorough Group-wide compliance
The entire Toyoda Gosei Group is striving to enhance corporate governanceso that we can continue as a company of integrity that is trusted by society.
To build and maintain fair and transparent corporate governance systems, weare increasing the effectiveness of the monitoring and auditing of corporate
management by outside directors and Audit & Supervisory Board members,
while also installing internal control systems company-wide to ensure the
propriety and efficiency of work. Through Group-wide compliance activities,
we are pursuing thorough legal compliance and business ethics.
We are also identifying risks with the potential to have a huge impact on
our operations, and implementing risk management activities to prevent
future problems.

Toru Koyama

Executive Vice President
Chief of Corporate Planning DivisionCorporate governance
Basic philosophy
We view the enhancement and strengthening of corporate
governance with the aim of ensuring sound and efficient
corporate management to be crucial in achieving
sustainable growth. Based on this, we are building andmaintaining fair and transparent management systems
and organizational systems that can respond precisely toenvironmental changes.

In addition, Toyoda Gosei supports the Corporate
Governance Code formulated by the Financial Services
Agency and the Tokyo Stock Exchange, and has voluntarily
implemented a range of policies based on the letter andspirit of those principles and rules to enhance our corporate
governance.

Corporate governance system
Toyoda Gosei has adopted an audit and supervisory board
system and set up the shareholders’ meeting, Board of
Directors, Audit & Supervisory Board, and accounting auditors
as statutory entities. We have also put in place internal auditorsand other internal control systems including internal audits.
The Board of Directors consists of nine directors and holds
regular monthly meetings (extraordinary meetings held asneeded), where matters prescribed by law and importantmatters related to corporate management are reported,discussed, and resolved.
A system of corporate officers is used to speed up decisionmaking and business execution. For important businessmatters, monthly management meetings are held. Functional
meetings and committee meetings relevant to key areas suchas technology, costs, and personnel are also held as needed forgood management decisions.
The Audit & Supervisory Board consists of five members
and holds regular meetings. Members also attend important
meetings such as Board of Directors’ meetings and audit eachdepartment and subsidiary, through which they fulfill theirfunction of auditing corporate management.
Accounting auditors are external auditors who combine
auditing functions with a commitment to ensuring an
independent and fair auditing system. The Company adopts

52

the current system because audit, supervisory, and executionfunctions are well coordinated with each other under thisstructure, with legality and efficiency of the Company's
decision-making and business execution sufficiently ensured.
Also, in order to strengthen the supervisory functionof the Board of Directors and to increase the objectivity
and transparency of the decision-making process, we haveestablished an Executive Appointment Committee andExecutive Compensation Committee under the Board of
Directors as non-mandatory advisory committees. The roles
and membership of the two committees are as follows.
Name

Role

Members

President
Deliberates and reports
Naoki Miyazaki (Chair),on proposals regarding
Outside Director
Executive
the appointment andSojiro Tsuchiya,
Appointment
dismissal of directors and Outside Director
Committee
Audit & Supervisory Board Kimio Yamaka,Outside Director
members
Mayumi Matsumoto
President
Naoki Miyazaki (Chair),
Deliberates and reports on Outside Director
Executive
the compensation system Sojiro Tsuchiya,
Compensation
Outside Director
for directors and their
Committee
individual compensation Kimio Yamaka,Outside Director
Mayumi Matsumoto

Value Creation Strategy

Foundation Supporting Value Creation

Financial Report

Internal control systems
In accordance with the provisions of Japan’s Companies Act,
Toyoda Gosei has formulated a Basic Policy on Establishing
Internal Controls. Under this policy, we are striving to ensure
appropriate operations by establishing internal control
systems, which help us deliberate important matters,

establish related rules and guidelines, and handle internal
audits, compliance and risk management. Every year,
the Board of Directors checks the status of establishment
and operation of internal controls in an ongoing effort toimprove and reinforce them.

Internal controls for the Toyoda Gosei GroupTo cultivate a healthy internal control environment at Toyoda
Gosei and its subsidiaries, all Group companies share its
management philosophy. The Toyoda Gosei Group Charterfor Business Ethics, a shared guideline for compliance, hasalso been instituted and expanded to subsidiaries. While
respecting the independence of subsidiary management, weCorporate governance system chart

receive regular business reports from subsidiaries and set up
systems to confirm the propriety and legality of subsidiaries’
businesses through advance approval reports. We also send
non-executive directors and Audit & Supervisory Board
members to key subsidiaries in a system to monitor and act
as a check on their business execution.
List of major company meetings
Meeting Name

Shareholders' Meeting
Appointment/Dismissal

Board of Directors
Consultation

Appointment/Dismissal
Audit

Cooperation
Audit &
Supervisory Board

Accounting
Auditors

Audit &
Supervisory
Board Dept.

Audit

Executive
Executive
Submission/ Appointment Compensation
ReportCommittee
Committee

Audit

Functional
Meetings

Business Execution System
President

Direction/Supervision

ReportAudit Div.

Management Board of Directors
Meetings
Management Meeting

ReportSupervision
Appointment/
Dismissal

Appointment/
Dismissal

Business Execution
Audit

Cooperation with Audit &Supervisory Board andAccounting Auditor

Corporate Officers
Functional/
Business Divisions
Subsidiaries

Company Meetings
Submission/
ReportDecision/
ApprovalManagement Meetings
Functional Meetings
Committees

Committees

Division in Charge

General Administration
Corporate Planning

Sales Meeting

Sales Planning

Technical Development
Meeting

Technical Administration,
Production Engineering
Management

Profit and Cost Meeting

Finance & Accounting

Production Meeting

Production Engineering
Management

Purchasing Meeting
Human Resources Meeting

Purchasing
Human Resources

Compliance and Risk
Management Committee

Legal, Corporate
Planning

Export Control Committee Corporate Planning
Safety and Health Committee Safety & Health Promotion
Environment Committee

Environment

Quality Committee

Quality Assurance

Internal audits, Audit & Supervisory Board members’ audits, and accounting audits
We have set up an Audit Division to handle internal
audits. With the aims of achieving business objectives andpreventing misconduct and mistakes, internal audits are
conducted across the overall business (including audits offunctional departments) based on an internal auditing plan
approved by management at the beginning of each term.
The results of internal audits are reported to
management, and audited departments are given
recommendations for improvements based on the audit
results. The effectiveness of internal audits is increased bychecking their improvement plans and results.
Each Audit & Supervisory Board member follows theauditing policy and audit plan established by the Audit& Supervisory Board when investigating the Company
and subsidiaries. They attend the meetings of importantdeliberative bodies and committees including the Boardof Directors and management meetings, listen to reports
on business from directors and others, inspect financial

statements and other important documents, and conduct
on-site audits of offices and subsidiaries to audit theperformance of duties by directors from the perspectives of
ensuring legality and appropriateness, protecting assets andrights, and preventing loss. Moreover, a special department
has been established to assist the auditors’ audits.
The certified public accountants who performed theaccounting audits of Toyoda Gosei are Eiichi Yamanaka andTomohiro Nishimura of the firm PricewaterhouseCoopers
Aarata LLC.
Audit & Supervisory Board members, internal auditing
department personnel, and accounting auditors regularly
meet to confirm their respective auditing systems, auditing
policy, auditing plans, implementation status, and audit
results. They cooperate in performing efficient and effective
audits, contacting each other as needed to exchange ideas
and share information.

53

GovernanceOutside directors and outside Audit & Supervisory Board members
Toyoda Gosei appointed three outside directors, Sojiro
Tsuchiya, Kimio Yamaka, and Mayumi Matsumoto, at its annual
shareholders’ meeting on June 14, 2019. Hideomi Miyake wasalso appointed as an outside Audit & Supervisory Board member.
Together with current outside Audit & Supervisory Board
members Takeshi Uchiyamada and Masami Hadama, a total ofthree outside Audit & Supervisory Board members have now been
appointed.
When electing outside directors, emphasis is placed on
extensive experience and deep insight in corporate management
and other areas, in addition to outside requirements from theCompanies Act. The outside Audit & Supervisory Board members
elected are people with deep experience and knowledge in theirfield of specialty and corporate management. They also stand asoutsiders with little direct vested interest and a certain distancefrom the management team.
Outside Audit & Supervisory Board members attend
directors’ meetings and serve to raise the viability of management
oversight, such as seeking proper explanations for the statusof the performance of the Board of Directors. They also visit
offices and subsidiaries as appropriate to conduct direct audits
while coordinating with other auditors. They meet regularly
with accounting auditors and personnel of the internal auditing
department, which has an internal control auditing function, toconfirm their respective auditing plans, implementation status,
and auditing results, and contact them as needed to exchange
opinions and share information for efficient and effective auditing.

Election of outside directors and outside
Audit & Supervisory Board members
Appointment

Outsidedirectors

Name

Independent
director

Reason for appointment

SojiroTsuchiya○

To reflect his extensive experienceand deep insight as a corporate
manager in the management of
Toyoda Gosei○

To reflect his extensive experienceand deep insight in policy financeand the environmental and energy
fields in the management of
Toyoda Gosei○

To reflect her extensive experienceand high-level insight as a news
anchor and researcher in the broad
fields of social issues, environment
and energy in the management of
Toyoda Gosei

Kimio
YamakaMayumiMatsumoto

To reflect his extensive experienceand deep insight as a corporate
manager in the auditing of Toyoda
Gosei

TakeshiUchiyamada
OutsideAudit &
Supervisory
Board
members

MasamiHadama○To reflect his extensive experienceand deep insight in law in theauditing of Toyoda Gosei

HideomiMiyake○To reflect his extensive experienceand deep insight as a corporate
manager in the auditing of Toyoda
Gosei

Messages from the outside directors

Counting on “One Team, One TG” in a radically changing situation
In the course of experiencing manufacturing and the automotive industry and being acompany director since my appointment as an outside director in June 2016, I have gained asense of Toyoda Gosei’s integrity and technical competence as well as its emphasis on a senseof unity so that its many personnel can spread diverse products globally.
Currently, I specialize in environmental and energy research at a think tank and university,
based on my experience in finance and research at a government-run financial institution.
I will engage in long-term corporate management and business decisions from a neutral
standpoint, and focus on offering advice, drawing on my experience in making forecasts andproposals regarding a radically changing energy situation.

Kimio Yamaka
Outside director

Hoping to contribute in view of SDG initiatives and environmental technology trends
I have worked as an anchor and reporter on a TV news program and, since 2008, I have been
engaged in research and education in the environmental and energy fields at the Universityof Tokyo. One thing that has stayed consistent over that time is my commitment to verifying
things with my own eyes by going out to the scene and listening to people.
I believe that Toyoda Gosei’s management philosophy of “Boundless Creativity and Social
Contribution” reflects a spirit of tirelessly moving forward, overcoming difficulties in any era,taking as strengths its creativity and technological capabilities to blaze a path into the future.
Going forward, I hope to contribute to an increase in our corporate value and contributeto growth with initiatives that address sustainable development goals (SDGs) throughbusiness activities, in view of environmental technology trends.

54

Mayumi Matsumoto
Outside director(newly appointed)

Value Creation Strategy

Executive compensation
Director compensation consists of base compensation
and bonuses. The base compensation is within a range
with an upper limit decided at the general shareholders’meeting, and determined in consideration of the duties
of each position. The amount of bonuses is calculated inconsideration of business performance and other factors,
and determined through a resolution at the generalshareholders’ meeting.
The base compensation of Audit & Supervisory Board
members is determined in consultation with the Audit &Supervisory Board members and within a range with an
upper limit decided at the general shareholders’ meeting.

Foundation Supporting Value Creation

Financial Report

Officer compensation

The total compensation for each officer class, the total byeach type of compensation, and the number of officers
receiving the compensation
Officer class

Total amount by type of
Total executive
Number ofcompensation compensation (Millions of yen) subject officers(Millions of yen) Base compensation Bonuses(People)Directors (excluding
outside directors)

407

311

96

9

Audit & Supervisory Board
members (excluding outside
members)

76

76

—

2

Outside officers

58

58

—

6

Note: Bonuses are the provision of allowance in the given fiscal year.

Ensuring the effectiveness of the Board of Directors
At Toyoda Gosei, the Board of Directors Office conducts
annual interviews of all directors and Audit & Supervisory
Board members, including outside ones, on the effectivenessof the Board of Directors. The roles and responsibilities of theBoard of Directors, the level of discussions, opportunities toimprove effectiveness and other matters are assessed frommultiple perspectives and the results are reported to theBoard of Directors.
The results of the assessment for fiscal 2018 showedthat the Board displayed a sufficient level of effectiveness.
Meaningful opinions were expressed in the assessment
process, and efforts to improve the effectiveness will continue.

Communication with shareholders and investors
For constructive dialogue with shareholders andinvestors, we have established a system for conducting
such dialogue in a coordinated manner, planning
opportunities and sharing necessary information.
This dialogue is carried out through financial results
briefings or small meetings for institutional investors
with explanations by the Company’s president or
relevant officer; plant tours for institutional investors
with explanations by the officer in charge; direct visitsby the officer and persons in charge of IR to institutional
investors; and other means. Based on the opinions anddesires of shareholders and investors obtained, further
opportunities for dialogue are being enhanced.
In compliance with fair disclosure rules, Toyoda Gosei
restricts dialogue with shareholders and investors andthoroughly controls information in the Company during
a silent period before earnings reports are released. If

insider information emerges in the Company, it is tightly
controlled as part of thorough information management.
Main IR activities
Targeted persons

IR activities

Domestic institutional
investors (including
securities analysts)

Individual discussions,financial results
briefings, facility tours,
telephone conferences

Overseas
institutional
investors

Individual discussions,participation in IR
eventsBriefings for individual
investors
Plant tours after annual
shareholders’ meeting
Issuance of “Report on
Business Results”●Individual
shareholders andinvestors●Issuance of the“Toyoda Gosei
Report”●Disseminationof financial
information and
IR materials on
the website●●Compliance
Basic philosophy
Toyoda Gosei’s management philosophy states, “We
promote business operations with integrity throughthe establishment of a system founded on thoroughcompliance and corporate ethics.” We strive for thoroughcompliance in all areas based on this philosophy.
The Toyoda Gosei Group Charter for Business Ethics
sets forth shared values and behavioral standards forthe entire Toyoda Gosei Group worldwide, and Group
companies in Japan and other countries formulate theirown behavioral guidelines based on the Charter. Toyoda
Gosei Co., Ltd. has also established the Toyoda Gosei
Behavioral Ethics Guidelines, which it expects every
employee to follow, and has worked to familiarize all
employees with these guidelines.

55

GovernanceCompliance system
Toyoda Gosei has established the Compliance and Risk
Management Committee with the Company’s president
serving as chairman and all company officers as members.
Together with compliance advocates in each division, thecommittee works for thorough compliance with a unified
approach between management and the workplace.
In Japan, regular compliance liaison conferences areheld with Group companies. Group companies in othercountries have established compliance committees,
appointed compliance advocates, or set up othercompliance systems suited to the circumstances in theirregion and company. Compliance activities are carried out
in coordination with Toyoda Gosei.

ComplianceCorporate activities
Support for the
Support for theManagement
compliance system Overseas
Philosophy
Domestic compliance systemaffiliates
afﬁliates
Toyoda Gosei Group
Charter for Business Ethics

Toyoda Gosei Guidelines for
Business Ethics

All company executives
Corporate Ethics Committee

Compliance and Risk
Management Committee

Legal affairs/
complianceworkshops

Compliance advocates from each division

Ensuring
compliance

Company-wide Compliance
Advocates’ Meeting
Internal and external

Compliance and harassment
consultation services offices

Specific efforts
Compliance consultation office
To identify and resolve compliance problems at an
early stage, Toyoda Gosei has established internal andexternal compliance consultation services offices and aninternal harassment consultation office.
Group companies in Japan have their own consultation
offices, in addition to which they have established a joint
external compliance consultation office together withToyoda Gosei. Group companies in other countries haveestablished external or internal consultation offices.

Compliance activity checks and kaizen
Toyoda Gosei conducts compliance entrenchment
questionnaires of all employees each year to confirm
penetration of compliance transparency and whether there
are signs of violations. Kaizen activities are then conductedbased on the results.
For Group companies in Japan and other countries, avoluntary check sheet is used to check their basic policy
and systems for compliance, the status of compliancewith important laws including anti-trust laws and bribery
and corruption laws, and risks in key areas such as humanresources, finance, sales, procurement, safety, and quality.
Based on the results, kaizen activities are conducted.

Efforts to prevent violations of anti-trust laws
Toyoda Gosei has prepared guidelines for Japan and key
regions where Group companies are located (UnitedStates, EU, China, Thailand, India, Brazil, and others), andis undertaking efforts globally to prevent anti-competitive
acts at Toyoda Gosei Group companies.
Specific behavioral guidelines that Toyoda Gosei
expects employees to follow in various business activities,
especially sales activities, are embodied in the Codes ofConduct for Antitrust Law Compliance in the Company’s
internal regulations, and thorough compliance is expectedof employees.
Continuing education activities are also conducted
through special training in competition laws and regularcompliance training for each level within the Company.

Anti-bribery efforts
Toyoda Gosei has formulated Global Anti-Bribery Guidelines
as a common guide to conducting transparent and soundbusiness activities globally, and is doing its utmost to
prevent bribery and corruption
at all Toyoda Gosei Group
companies. Education activities
are continuously conducted for
employees through training foreach level and risk.
Compliance training

Risk management
Basic philosophy
With the aims of preventing risks that could have graveconsequences for management and minimizing damage
in the event that adverse events do occur, we identify risks
in each function and make decisions on how to respondin the Compliance and Risk Management Committee andgeneral meetings.

56

For each type of risk in safety, quality, and theenvironment, the department in charge has establishedregulations and key points and conducts proper business
management, such as implementing measures as needed
based on assessments of operational status.
Moreover, Risk Management and Response Guidelines

Value Creation Strategy

have been established. These guidelines summarize basic
matters related to risks and show the behaviors to adopt

Foundation Supporting Value Creation

Financial Reportto prevent potential risks and to respond appropriately
and quickly in the event that problems occur.

Crisis Management Project in anticipation of large-scale earthquake disasters
Earthquakes occur frequently in Japan, and we have put
into place a crisis management system in the event of a
massive earthquake based on the principles of human life
first, community support, and early recovery. Specifically,in addition to infrastructure and system measures basedon the project, we have conducted resilience training morethan 100 times for directors and members of anti-disaster
departments since fiscal 2013. These efforts are based on
our belief that improving the skills of response personnel isessential. We have also established specific procedures forthe recovery of affected buildings, facilities, and processes

and for alternative production in a production recovery
system. Recovery training for design drawings and otherdata is also carried out so that product development canbe continued even after disasters. In addition, workshops
to strengthen crisis management not only in our own
companies but also at affiliates and suppliers are conducted
regularly. Assessments using anti-earthquake measures
implementation status check sheets, clarification of weak
points with graphs, introduction of responses taken at Toyoda
Gosei and other companies, and cooperative preparation ofbusiness continuation plans（BCPs）are carried out.

Efforts to date

Disaster response

Classification

Disaster outbreak̶First response

Measures●●Earthquake resistance measures for buildings and facilities
Establishment of a disaster prevention center to serve as an operations base for theentire company for antidisaster department operations
Equipping all locations with a multi-channel access radio system (which is used inJapan for various purposes, from daily work to emergency and disaster situations)and satellite phones
Installment of a crisis management server (earthquake-resistant structure) andemergency power generators
Operation of a disaster recovery system for restoration of damaged systems anddata centers (special facilities equipped with and operating computers, data
communications, and other devices)●

Facility andequipment
measures

●

●

●
●

Systemmeasures●●●●

Introduction of site and building safety decisions
Maintenance of supply chain information
Teleconference system for multiple locations using tablet computers
Earthquake bulletin and employee safety information system trainingEmployee safety follow-up system incorporating arrival and departure times atcompany and business trip data
Preparation of a BCP

Recovery

Permanent
Warning &Monitoring Team

Disaster occurs

Emergency
Task Force

Emergency
earthquake alertFirst Response
Task Force
Advance Team
(investigative team)Life Support
Task ForceDistrict
Task Force

Production
Restoration
Task ForceInstructions
Reports

Strengthening information security measures and raising awarenessTo strengthen the control of confidential information,
annual checks of the compliance status of each division
based on company confidentiality management
regulations are conducted together with onsite audits. Selfinspections are also done at Group companies in Japanand overseas business bases. Confidentiality officers

are assigned in all departments, and confidentiality
education activities are conducted based on information
system security operating standards and a confidential
information management manual. Security control
education is also conducted for new employees.

Enhanced measures
Classification

Preventionof leaks fromnegligence
Prevention ofmalicious
unauthorized
leaks

Tangiblemeasures
Intangible
measures
Tangiblemeasures
Intangible
measures

Educational activities(ethics)

Measures
●

●
●

●
●

●
●
●

●

Printing restrictions with ID card authentication on multifunction machines and dedicated drawing printers
Data encryption of all PCs
Security measures when sending emails out of the Company (cc to superiors and encryption of attached files)
Increased surveillance cameras
Installation of wire locks to prevent PC theft
Confidentiality pledge
Stricter applications for taking items from premises
Restricted file server access
New employee education
Company-wide security control voluntary
inspections using check sheets●●●

Restrictions on writing onto external storage media
System use records and access log records monitoring
Strengthened hacking prevention measures (Internet)
Prevention of unauthorized connection of terminals brought in from outside

●

●

●

●

On-site checks of each department
Training in responding to standard email

57

GovernanceManagement Members （As of August 1, 2019）

Naoki Miyazaki

Masakazu Hashimoto

Toru Koyama

Tomonobu Yamada

1980 Joined Toyota Motor Company

1980 Joined Toyota Motor Company

1982 Joined Toyoda Gosei

1981 Joined Toyoda Gosei

2008 Managing Officer, Toyota Motor
Corp.

2002 Joined Toyoda Gosei

2005 General Manager, Development
Division, Safety Systems
Business Unit, Toyoda Gosei

2007 General Manager, First Sales
Division, Toyoda Gosei

President

Executive Vice President

2013 Senior Managing Officer, Toyota
Motor Corp.

2005 General Manager forTechnology, Safety Systems
Business Unit, Toyoda Gosei

2014 Executive Vice President, Toyoda
Gosei

2012 Corporate Officer, Toyoda
Gosei

2015 President, Toyoda Gosei(current)

2014 Managing Officer, Toyoda
Gosei
2016 Senior Managing Officer,
Toyoda Gosei; Chief, Research& Development Headquarters
Toyoda Gosei (current)
2017 Director, Toyoda Gosei
2018 Executive Vice President,
Toyoda Gosei (current)

2012 Corporate Officer, Toyoda
Gosei; President, Toyoda Gosei
North America Corp.
2015 Managing Officer, Toyoda Gosei
2016 In charge of Corporate
Planning Division, Toyoda
Gosei; Director, Toyoda
Gosei; Chief, Purchasing
Headquarters, Toyoda Gosei
2018 Senior Managing Officer,
Toyoda Gosei
2019 Executive Vice President,
Toyoda Gosei (current); Chiefof Corporate Planning Division,
Toyoda Gosei (current)

Director, Corporate Officer

2010 Director, Toyoda Gosei
2012 Corporate Officer, Toyoda Gosei
2014 Managing Officer, Toyoda Gosei;
Chief, Sales Headquarters,
Toyoda Gosei (current)
2016 Director, Toyoda Gosei;
President, Toyoda Gosei(Shanghai) Co., Ltd. (current)
2018 Senior Managing Officer,
Toyoda Gosei; oversees
General Industry Products Div.,
Toyoda Gosei
2019 Director, Corporate Officer(current); Chief of GeneralIndustry Products Division,
Toyoda Gosei(current)

Hiroshi Yasuda

Masaki Oka

Sojiro Tsuchiya

Kimio Yamaka

1982 Joined Toyoda Gosei

1985 Joined Toyota Motor Corp.

1975 Joined Nippondenso Co., Ltd.

2006 General Manager, Planning
Division, Safety Systems
Business Unit, Toyoda Gosei

2012 Project Senior Manager,
Finance & Accounting Division,
Toyota Motor Corp.

2002 Director, Denso Corp.

1980 Joined Japan Development
Bank2010 President, Toyoda Gosei Czech,
s.r.o.

2014 General Manager, Related Business
Department, Toyota Motor Corp.

2012 Corporate Officer, Toyoda Gosei

2015 Adviser, Toyoda Gosei; Corporate
Officer, Toyoda Gosei; General
Manager, Finance & Accounting
Division, Toyoda Gosei; in charge of
IT Planning Division, Toyoda Gosei

Director, Corporate Officer

2016 Director, Managing Officer, Toyoda
Gosei; Chief, Production Headquarters,
Toyoda Gosei (current); General
Manager, Plastic Parts Production
Center, Toyoda Gosei; President,
Tianjin Toyoda Gosei Co., Ltd.
2017 Oversees Quality Assurance
Headquarters, Toyoda Gosei
2018 Director, Senior Managing
Officer, Toyoda Gosei
2019 Director, Corporate Officer, Toyoda
Gosei (current); Chief of Safety &Health Promotion Division,
Environment Division, Production
Headquarters, Toyoda Gosei (current)

58

Executive Vice President

Director, Corporate Officer

2016 Deputy Chief, Finance & Accounting
Headquarters, Toyoda Gosei; in chargeof Audit Division, Toyoda Gosei
2017 Chief, Finance & Accounting
Headquarters, Toyoda Gosei (current)
2018 Director, Managing Officer, Toyoda
Gosei; Chief, IT Headquarters,
Toyoda Gosei (current)
2019 Director, Corporate Officer, Toyoda
Gosei (current); Chief of Audit
Division, Toyoda Gosei (current)

Outside Director

2004 Managing Officer, Denso Corp.
2007 Senior Managing Director,
Denso Corp.
2011 Executive Vice President,
Denso Corp.
2013 Advising Executive Engineer,
Denso Corp.
2015 Director, Toyoda Gosei(current); Adviser, Denso Corp.

Outside Director

2007 Deputy Director-General,
Development Bank of Japan
2009 Director of the Energy Strategy
Institute Co., Ltd. (current)
2016 Director, Toyoda Gosei(current)Value Creation Strategy

Foundation Supporting Value Creation

Financial Report

Corporate Officers

Takashi Ishikawa
Ryo Onishi
Yoshiyuki Fujita
Junichiro Kako

Mayumi Matsumoto

Katsumi Tanabe

Hitoshi Mizutani

Audit & Supervisory Board Member

Hiroki Fukui

1987 Contract newscaster, TV Asahi
Corporation

1981 Joined Toyota Motor Sales Co.,
Ltd.

1982 Joined Toyoda Gosei

Todd Huber

1993 Contract newscaster, Japan
Broadcasting Corporation

2006 General Manager, European
Business Dept., Toyota Motor
Corp.

Outside Director

2003 Freelance announcer, Horipro Inc.
2008 Collaborative Researcher, ResearchCenter for Advanced Science andTechnology, The University of Tokyo
2009 Project Researcher, same as above
2011 Director, principal researcher,International Environment andEconomy Institute (current)

Audit & Supervisory Board Member

2012 Project Senior Manager, TMEJapan, Toyota Motor Corp.
2013 Auditor, Toyoda Gosei;
Corporate Officer, Toyoda Gosei
2017 Full-Time Audit & Supervisory
Board Member, Toyoda Gosei(current)

2014 Visiting Associate Professor, Special
Division of Environmental and Energy
Science, Komaba Organization for
Educational Excellence (KOMEX),The University of Tokyo (current)

2009 Deputy General Manager,
Finance & Accounting Division,
Toyoda Gosei

Hiroyasu Hirayama

2010 Executive Vice President, TG
Missouri Corp.
2015 General Manager, Finance& Accounting Division,
Toyoda Gosei; Deputy
General Manager, Finance &Accounting Division, Toyoda
Gosei
2016 Full-Time Audit & Supervisory
Board Member Toyoda Gosei(current)2017 Director, Japan Council for
Renewable Energy (current)
2019 Director, Toyoda Gosei (current)

Takeshi Uchiyamada

Masami Hadama

Hideomi Miyake

1969 Joined Toyota Motor Company

1993 Public Prosecutor

1998 Director, Toyota Motor Corp.

2006 Public Prosecutor, Special
Investigation Dept., Tokyo
District Public Prosecutors
Office1968 Joined Toyoda Iron Works Co.,Ltd.

Outside Audit & Supervisory Board Member

2001 Managing Director, Toyota
Motor Corp.
2003 Senior Managing Director,
Toyota Motor Corp.
2005 Executive Vice President,
Toyota Motor Corp.
2012 Vice Chairman of the Board of
Directors, Toyota Motor Corp.
2013 Chairman of the Board of
Directors, Toyota Motor Corp.
(current)
2018 Audit & Supervisory Board
Member, Toyoda Gosei(current)

Outside Audit & Supervisory Board Member

2007 Registered lawyer, partner at
TMI Associates (current)
2008 Professor, Sophia University
Graduate School of Law
2012 Representative, TMI Partners
2014 Audit & Supervisory Board
Member, Toyoda Gosei(current)

Outside Audit & Supervisory Board Member

1993 Director, Toyoda Iron WorksCo., Ltd.
1999 Managing Director, Toyoda
Iron Works Co., Ltd.
2003 Senior Managing Director,
Toyoda Iron Works Co., Ltd.
2005 President, Toyoda Iron WorksCo., Ltd.
2011 Chairman, Toyoda Iron WorksCo., Ltd.
2015 Audit & Supervisory Board
Member, Toyoda Gosei(current)
2016 Senior Adviser, Toyoda Iron
Works Co., Ltd. (current)

59

Financial Report
Consolidated 10-Year Financial Summary
FY2009FY2010FY2011FY2012FY2013

Net sales

495,002516,982

504,518

599,615

689,477

Operating profit

26,202

29,952

20,41536,706

43,798

Ordinary profit

26,57427,54920,287

36,77745,847

Profit before income taxes

23,92627,192

19,07636,571

46,101

Profit attributable to owners of parent ＊1

14,255

17,116

8,971

21,42926,21467,78356,58670,71579,07392,364

198,537

183,293229,238

244,798

279,281

194,457

191,261

183,864

196,163

210,214

235,807

233,268

225,555

244,846

262,596434,344416,562454,794

489,644541,877

19,35520,20023,30035,97839,069Current liabilities

130,857

123,379

149,968

157,748

168,136

Bonds payable

10,00010,000---Long-term loans payable

34,245

19,34834,39723,32931,138Non-current liabilities

73,572

59,10767,45759,751

73,462

Total liabilities

204,429

182,487

217,426

217,500

241,598

Shareholders’ equity

221,724233,365

238,400

255,201

275,840(Reference) Interest-bearing debt

63,60049,54857,69859,30770,207

Cash flows from operating activities

68,19962,586

51,11252,45155,448J-GAAP
Operating results

Financial position（Fiscal year ended （Fiscal year ended （Fiscal year ended （Fiscal year ended （Fiscal year ended
March 31, 2010） March 31, 2011） March 31, 2012） March 31, 2013） March 31, 2014）

Cash and deposits
Current assets
Property, plant and equipment
Non-current assets
Total assets
Short-term loans payable

Cash flows

Key performanceindicators

Per share
information (yen)

＊1
＊2

60

＊2

Cash flows from investing activities（36,574） （52,579） （37,027） （40,989） （45,680）

Cash flows from financing activities（7,426） （18,785）

2,224（6,128）（732）

Return on sales (%)

2.9

3.3

1.8

3.6

3.8

Total asset turnover (times)

1.20

1.22

1.16

1.27

1.34

Equity ratio (%)

49.2

52.2

48.6

51.7

51.6

Return on equity (ROE) (%)

6.9

7.9

4.1

9.0

9.8

Capital investment

34,326

46,98337,62339,09743,085

Depreciation and amortization

43,00744,481

41,964

38,63338,743R&D expenses

26,066

25,61725,93627,27929,170

Number of employees at year-end (consolidated)

26,08426,964

29,10830,19031,672

Annual dividends

36.00

36.00

36.00

44.00

56.00

Earnings per share (EPS)

110.19132.2769.33

165.63202.54

Dividend payout ratio (%)

32.67

27.22

51.93

26.57

27.65

“Net income” for FY2010 or before
Including current portion of long-term loans payable and redemption of bonds within one yearValue Creation Strategy

Financial Report

Foundation Supporting Value Creation(Millions of yen; rounded down to the nearest million yen)

FY2014FY2015FY2016FY2017FY2017FY2018727,846

781,886

755,601

806,938

Revenue

807,958

840,71441,60342,82440,675

41,136

Operating profit

35,17936,525

43,792

41,49039,007

43,20039,851

36,71031,28835,775

Profit before tax

35,50737,35621,155

20,255

16,233

21,175

Profit attributable to owners of parent

21,361

23,30985,28378,38897,553

104,309

97,991

107,311291,246

281,212305,273

328,524357,666

382,106

250,557

241,408

245,666

259,537

241,581257,728

316,926

306,160

315,425

333,819

Non-current assets

321,819

326,023

608,172

587,373

620,699

662,388

Total assets

679,485

708,129

41,84821,07331,762

43,722

Borrowings

43,72232,396

180,795

162,592

170,574

189,075

Current liabilities

195,392

194,309---

10,00042,92944,691

57,26154,45864,511

93,08988,902

96,937

110,663

119,403

Non-current liabilities

118,435

133,674

269,697259,530

281,237

308,479

Total liabilities

313,828

327,983

289,321

301,756

311,127

324,890

Equity attributable to owners of parent

84,77765,76589,023

108,181(Reference) Interest-bearing debt

108,233

125,486

51,283

77,76560,40160,848Cash flows from operating activities

44,00457,463（Fiscal year ended （Fiscal year ended （Fiscal year ended （Fiscal year ended
March 31, 2015） March 31, 2016） March 31, 2017） March 31, 2018）（62,432） （56,261） （82,131） （39,201）（238） （24,736）

IFRS

Cash and cash equivalents
Current assets
Property, plant and equipment

Bonds and borrowings

Cash flows from investing activities（Fiscal year ended （Fiscal year ended
March 31, 2018） March 31, 2019）（21,832） （55,491）

14,794

6,541

Cash flows from financing activities

5,966

7,749

2.9

2.6

2.1

2.6

Profit attributable to owners of parent ratio (%)

2.6

2.8

1.27

1.31

1.25

1.26

Total asset turnover (times)

1.23

1.21

51.6

51.7

50.7

49.6

Ratio of equity attributable to owners of parent to total assets(%)

50.1

50.0

7.1

6.6

5.2

6.6

Return on equity (ROE) (%)

6.4

6.7

64,73354,49855,21864,816

Capital investment

53,411

46,89139,353

44,46240,902

44,037

Depreciation and amortization

32,54532,92729,57928,40927,164

27,864R&D expenses

27,68430,02534,75435,90336,67938,234

Number of employees at year-end (consolidated)

38,23439,429

56.00

56.00

53.00

56.00

Annual dividends

56.00

60.00

163.44156.49125.42163.60Earnings per share (EPS)

165.04180.09

34.26

35.79

42.26

34.23

Dividend payout ratio (%)

33.93

33.32

61

Financial Report

Financial Review
As of the first quarter of the fiscal year ended March 31,
2019, the Toyoda Gosei Group has adopted IFRS withthe objectives of increasing international comparabilityof financial reports in the capital market and further
strengthening its business management globally.

Overview
Amid a growing sense of economic slowdown in the fiscal
year under review, the global economy overall followed agradual recovery trend, buoyed by solid economic growth in
the United States.
In Japan, the effect of natural disasters and rising
uncertainty about overseas economies led to a deeper senseof economic slowdown toward the end of the fiscal year.
The automobile industry remained strong on a global
basis with the Japanese market maintaining upward
momentum thanks to brisk sales of new models andexpansion of emerging markets while the U.S. and Chinese
markets plateaued.
Facing these circumstances, in May 2018, the Toyoda
Gosei Group announced the 2025 Business Plan, its new
medium- to long-term business plan, in which it set out its
goals as follows: “Toyoda Gosei aims to grow as a global
company that acts flexibly and swiftly in today’s dramaticallychanging business environment, delivering the highest
levels of satisfaction to customers worldwide through safety,
comfort, well-being, and the environment.”
The plan identifies three key pillars of activity that we willprioritize, in order to meet our management targets for fiscal
2025: revenue of ¥1 trillion, an operating profit margin of 8%,
and ROE of 10%.
The first pillar is “venture into innovation, new mobility,”
under which we are pursuing early commercialization in
unconventional new domains through innovative technology.
We successfully turned e-Rubber, a next-generation dielectricrubber made using our rubber materials technology, into
the product SupeR BEAT, a heart surgery training simulator.
We are now developing a business around high-value-added
products in the medical field.
We are also focusing on development of a vertical gallium
nitride (GaN) power semiconductor device that utilizes
technology and expertise we have cultivated throughdevelopment and production of blue light-emitting diodes(LEDs). In addition, we are developing products that respondto the radical transformation of the car itself.
To accelerate commercialization of these newtechnologies and products, we have established a corporate
venture capital arm within the Company to invest agilelyin startups expected to produce synergies with our coretechnologies.
The second key pillar of activity is a “strategy for growing
markets/fields.” We have aggressively invested in capacity
expansion in the Americas, which is an area underpinning62

earnings, and sought to further expand earnings bypromoting sales to both Japanese and non-Japanesecustomers. In China, which is the world’s largest market
and is expected to keep growing, we adopted a policy of
increasing the number of major customers. Accordingly,
we improved our business management system, including
turning our regional headquarters into a holding company.
We also established Hubei Toyoda Gosei Zheng Ao Rubber& Plastics Sealing Science and Technology Co., Ltd. with theaim of strengthening our production and sales system in theinterior of China.
The third key pillar of activity is “innovative manufacturing
at production sites.” In addition to activities to increase
productivity on the production floor based on the Toyota
Production System (TPS), we worked at improving efficiency
using new IT. We are striving to quickly resolve bottlenecks
by analyzing big data gathered from production processes.
In an effort to strengthen the business foundation that
underpins these three key pillars of activity, last year we held
our third TG Global Summit for the first time in three years.
At the summit, the Group’s top leaders from around theworld gathered to discuss the current status of business andissues, and we spread concrete initiative measures aimed at
the achievement of management objectives throughout theGroup.
In our European business, which is an issue, a drastic
earnings improvement was not achieved. However, we
resolved production confusion in the first half of the year,
trimming losses in the second half of the year.
As a result of the above, in the fiscal year under review,
revenue increased to ¥840.7 billion (up 4.1% year on year)
thanks to the boost in sales of new car models in Japan, sales
promotion in the Americas, and increased production by our
major customers in Asia.
Despite posting a loss on anti-trust law in the second
quarter, profit increased as a result of the boost in sales
caused by new car models in Japan and our rationalization
efforts, with operating profit of ¥36.5 billion (up 3.8%) andprofit attributable to owners of parent of ¥23.3 billion (up9.1%). The foreign exchange rate was ¥111 to the U.S. dollar
during the previous consolidated fiscal year and during theconsolidated fiscal year under review.
(Millions of yen)

Consolidated results

FY2018FY2017

Revenue

840,71436,52523,309807,958
35,17921,361

Operating profit
Profit attributable to owners of parent

Value Creation Strategy

Foundation Supporting Value Creation

Revenue by segment

Financial condition

Japan
Revenue increased to ¥407.0 billion (up 6.2% year onyear) due to increased sales of new car models by major
customers. Despite posting a loss on anti-trust law inthe second quarter, profit increased to ¥11.0 billion (up4.4%), with the boost in sales of new car models being acontributing factor.

Americas
Sales promotion to both Japanese and non-Japanesecustomers increased revenue to ¥249.1 billion (up 3.3%
year on year). Profit was ¥17.4 billion (up 9.5%), with theeffect of higher sales and rationalization efforts offsetting
downward factors such as a rise in labor costs.

Asia
Lifted mainly by an increase in production by Japanesecustomers, revenue increased to ¥199.7 billion (up 1.3%
year on year). Profit was ¥12.7 billion (up 1.4%) as a resultof the rise in sales.

Europe & Africa(Millions of yen)

Revenue by segment

FY2018FY2017

Japan

407,084
249,150
199,790
45,955383,258
241,238
197,252
47,499Asia
Europe & Africa

Analysis of financial position
1. Assets, liabilities, and equity
Total assets at the end of the fiscal year under review
increased by 28.6 billion yen year on year, to ¥708.1 billion,
primarily as a result of a rise in fixed assets. Liabilities
increased by ¥14.1 billion year on year, to ¥327.9 billion,
mainly due to an increase in borrowings.
Equity rose by ¥14.4 billion year on year, to ¥380.1
billion, largely as a result of an increase in retained
earnings.

2. Cash flows
Cash and cash equivalents at the end of the fiscal year
under review increased by ¥9.3 billion, from ¥97.9 billion at
the end of the previous fiscal year, to ¥107.3 billion.
Cash flows and related factors during the fiscal year
under review were as follows.
●

Revenue was ¥45.9 billion (down 3.3% year on year) and aloss of ¥4.7 billion was posted (compared with a loss in theprevious fiscal year of ¥4.1 billion) due to an increase inproduction reorganization costs in Europe.

AmericasFinancial Report

Outlook for fiscal 2019
It is extremely difficult to forecast the future prospects ofthe global economy due to protectionist trends in various
countries and mounting geopolitical risk.
The auto industry is also in a critical situation, with alikelihood of fierce competition involving different types ofbusiness and other industries due to the rapid progress ofelectrification and self-driving vehicles.
Given such a harsh environment, we will conduct futurefocused R&D, strengthen our product supply system insideand outside Japan, and make Group-wide rationalization
efforts. Our forecast for results in fiscal 2019 is revenueof ¥845.0 billion, operating profit of ¥41.0 billion, profit
before tax of ¥42.0 billion, and profit attributable to ownersof parent of ¥25.0 billion.
We also anticipate a foreign exchange rate of ¥110 to the
U.S. dollar.

Cash flows from operating activities

Operating activities provided net cash of ¥57.4 billion, an
increase of ¥13.4 billion compared to ¥44.0 billion in theprevious fiscal year.
●

Cash flows from investing activities

Investing activities used net cash of ¥55.4 billion, an
increase of ¥33.6 billion compared to ¥21.8 billion in
the previous fiscal year. This was mainly due to a rise inpayments into time deposits.
●

Cash flows from financing activities

Financing activities provided net cash of ¥7.7 billion,
an increase of ¥1.7 billion compared to ¥5.9 billion in
the previous fiscal year. This was mainly due to a rise inproceeds from short-term borrowings.
(Millions of yen)

Cash flows
Cash flows from operating activities
Cash flows from investing activities
Cash flows from financing activities

FY2018FY201757,46344,004（55,491） （21,832）

7,749

5,966

63

Financial Report(Millions of yen)

Consolidated Statement of
Financial Position

Date of transition
to IFRS（April 1, 2017）

FY2017（as of March 31, 2018）

FY2018（as of March 31, 2019）

AssetsCurrent assets
Cash and cash equivalents

69,918159,066
27,68563,3349,973
329,977

97,991
172,480
7,154
63,98916,049357,666

107,311
179,791
10,824
63,647
20,531
382,106

233,659
1,906
46,59913,446
4,553
5,304
3,438
308,909638,887

241,581
2,316
51,826
13,470
4,435
4,859
3,329
321,819
679,485

257,728
2,327
39,19013,897
3,722
5,434
3,722
326,023
708,129

125,689
31,762
5,777
3,429
1,363
8,295
176,317

132,758
43,722
5,750
3,704
1,252
8,204
195,392

140,660
32,396
6,216
3,221
1,499
10,313
194,309

58,955
12,12332,033
93
5,283
2,176
110,665
286,983

64,511
14,67733,447
92
3,618
2,089
118,435
313,828

93,089348
34,320
115
3,558
2,242
133,674
327,983

Other components of equity

28,02729,314（1,216）
14,68828,027
29,055（1,218）14,32628,027
26,968（1,219）14,674Retained earnings

256,467

270,354285,669

Total equity attributable to owners of parent

327,282

340,546

354,120

Trade and other receivables
Other financial assets
Inventories
Other current assets
Total current assets
Non-current assets
Property, plant and equipment
Intangible assets
Other financial assets
Investments accounted for using equity method
Retirement benefit asset
Deferred tax assets
Other non-current assets
Total non-current assets
Total assets
Liabilities and equity
Liabilities
Current liabilities
Trade and other payables
Borrowings
Other financial liabilities
Income taxes payable
Provisions
Other current liabilities
Total current liabilities
Non-current liabilities
Bonds and borrowings
Other financial liabilities
Retirement benefit liability
Provisions
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities
Total liabilities
EquityShare capital
Capital surplus
Treasury shares

Non-controlling interests
Total equity

Total liabilities and equity

64

24,621

25,111

26,024351,903

365,657

380,145

638,887

679,485

708,129

Value Creation Strategy

Foundation Supporting Value Creation

Financial Report(Millions of yen)

Consolidated Statement of Profit or Loss
Revenue
Cost of sales
Gross profit
Selling, general and administrative expenses
Other income
Other expenses
Operating profit
Finance income
Finance costs
Share of profit of investments accounted for using equity method
Profit before tax
Income tax expense
Profit

FY2017

1, 2017 to（ AprilMarch 31, 2018）

FY20181, 2018 to（ AprilMarch 31, 2019）807,958（705,857）
102,101（60,567）
4,164（10,518）
35,1792,186（2,903）
1,044
35,507（10,982）
24,525

840,714（737,352）
103,362（62,387）
4,279（8,728）36,5252,669（2,692）854
37,356（11,245）
26,111

21,361
3,163
24,52523,3092,801
26,111165.04180.09Profit attributable to
Owners of parent
Non-controlling interests
ProfitEarnings per share
Basic earnings per share (yen)(Millions of yen)

Consolidated Statement ofComprehensive Income
Profit

FY2017

1, 2017 to（ AprilMarch 31, 2018 ）FY20181, 2018 to（ AprilMarch 31, 2019）24,525

26,111

Financial assets measured at fair value throughother comprehensive income

2,041（1,218）Remeasurements of defined benefit plans

Other comprehensive income
Items that will not be reclassified to profit or loss

（331）

（460）

Share of other comprehensive income of investments
accounted for using equity method

144

（33）

Total of items that will not be reclassified to profit or loss

1,854

（1,712）Items that may be reclassified to profit or loss
Exchange differences on translation of foreign operations（1,922）

1,983

Share of other comprehensive income of investments
accounted for using equity method

（272）

（120）

Total of items that may be reclassified to profit or loss
Other comprehensive income, net of tax
Comprehensive income（2,195）（340）
24,185

1,862
149
26,261

Comprehensive income attributable to
Owners of parent
Non-controlling interests
Comprehensive income

20,774
3,411
24,18523,2133,047
26,26165

Financial Report(Millions of yen)

Consolidated Statement of Changes in Equity
Equity attributable to owners of parent

Balance as of April 1, 2017
ProfitOther comprehensive income
Total comprehensive income
Purchase of treasury shares
Dividends
Changes in ownership interest in subsidiaries
Transfer from other components ofequity to retained earnings
Total transactions with owners
Balance as of March 31, 2018
ProfitOther comprehensive income
Total comprehensive income
Purchase of treasury shares
Dividends
Changes in ownership interest in subsidiaries
Transfer from other components ofequity to retained earnings
Total transactions with owners
Balance as of March 31, 2019

SharecapitalCapitalsurplusTreasuryshares28,027-29,314（258）（1,216）
（1）
-

-

-

28,02728,027

Other components of equity
Exchange
Financial assets
differences
Remeasurements
measured at fairon translationof definedvalue through othercomprehensiveof foreign
benefit plansincomeoperations（2,400）（2,400）-14,688
2,038
2,038
-

-

-

-

225

（258）
29,055（2,086）（1）（1,218）（1）-（2,400）
1,618
1,618
（41）

16,726（1,228）（1,228）
-

225
（486）
（486）
-

-

-

-

-

486

（2,086）
26,968（1）（1,219）

（41）
（823）

15,498486-

Equity attributable to owners of parent
Other componentsof equity
Total

66

Retainedearnings

Total

Noncontrollinginterests

Total

Balance as of April 1, 2017
ProfitOther comprehensive income
Total comprehensive income
Purchase of treasury shares
Dividends
Changes in ownership interest in subsidiaries

14,688
（587）
（587）
-

256,467
21,361
21,361（7,249）-327,282
21,361（587）
20,774（1）（7,249）（258）

24,621
3,163
247
3,411
（2,235）（685）

351,903
24,525（340）
24,185（1）（9,485）（944）

Transfer from other components ofequity to retained earnings

225

（225）

-

-

-

Total transactions with owners
Balance as of March 31, 2018
ProfitOther comprehensive income
Total comprehensive income
Purchase of treasury shares
Dividends
Changes in ownership interest in subsidiaries

225
14,326
（96）
（96）
（41）

（7,474）
270,354
23,30923,309（7,508）-（7,510）340,546
23,309（96）
23,213（1）（7,508）（2,128）（2,921）
25,111
2,801
246
3,047
（2,737）603

Transfer from other components ofequity to retained earnings

486

（486）

-

-

444
14,674（7,995）
285,669（9,638）354,120（2,134）26,024

Total transactions with owners
Balance as of March 31, 2019

（225）
（225）
-

（10,431）
365,657
26,111
149
26,261（1）（10,246）（1,525）（11,772）
380,145

Value Creation Strategy

Foundation Supporting Value Creation

Financial Report(Millions of yen)

Consolidated Statement of Cash FlowsFY2017FY20181, 2017 to（ AprilMarch 31, 2018 ）1, 2018 to（ AprilMarch 31, 2019）

Cash flows from operating activities
Profit before tax

35,50732,535（3,824）2,144（1,044）（342）（550）（13,675）
4,215
1,740
56,707
1,602
899（2,130）（13,074）
44,00437,35633,789（2,669）
2,830
（854）
590
719
（7,351）
5,008（522）
68,896
1,835
1,042（2,577）（11,732）
57,463（3,618）25,025（43,495）（14,249）
9,964（49,479）

2,449

1,327

（2,583）410（19）（21,832）（3,131）40
35（55,491）

Repayments to non-controlling shareholders

21,598（21,400）
24,187（13,943）9,954（1）（7,248）（2,235）163（649）

37,296（27,293）
31,462（25,787）（1）（7,503）（2,742）-

Purchase of shares of subsidiaries not resulting
in change in scope of consolidation（3,866）-

Proceeds from purchase of shares of subsidiaries
not resulting in change in scope of consolidation

-

2,314

（591）
5,966
28,13869,918（65）
97,991

3
7,749
9,721
97,991（401）
107,311

Depreciation and amortization
Finance income
Finance costs
Share of loss (profit) of investments accounted for using equity method
Loss (gain) on sale of fixed assets
Decrease (increase) in inventories
Decrease (increase) in trade and other receivables
Increase (decrease) in trade and other payables
Other
SubtotalInterest received
Dividends received
Interest paid
Income taxes paid
Net cash provided by operating activities
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment, and intangible assets
Proceeds from sale of property, plant andequipment, and intangible assets
Purchase of investments
Proceeds from sale and redemption of investments
Other
Net cash used in investing activities
Cash flows from financing activities
Proceeds from short-term borrowings
Repayments of short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Proceeds from bonds payable
Purchase of treasury shares
Dividends paid
Dividends paid to non-controlling interests
Capital contribution from non-controlling interests

Other
Net cash provided by financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Effect of exchange rate changes on cash and cash equivalents
Cash and cash equivalents at end of period

67

Financial ReportCompany and Investor Information（As of March 31, 2019）
Location of
headquarters

1 Haruhinagahata, Kiyosu, Aichi,
452-8564, Japan

Date of establishment

June 15, 1949

Capital¥28 billion

Common stock

Treasurystock at cost
0.43％

Financial
institutions
24.80％

Individuals,
others
5.79％

Authorized 200,000,000 shares
Issued 129,456,592 shares（Excluding 553,419 shares of treasury stock）

Number ofshareholders

9,589

Stock exchange
listings

Tokyo Stock Exchange andNagoya Stock Exchange

Financial
instruments
business
1.10％

Foreigncorporations
18.82％

Domestic
business entities
49.06％

Major shareholders（As of March, 2019）

Shareholder registry
Mitsubishi UFJ Trust andadministrator andBanking Corporation
special accountmanagement institution
Securities code

Distribution for each type of shareholder

7282

Number of shares held Investment(unit : 1,000 shares) ratio（％）

Shareholder nameToyota Motor Corporation

55,45942.84

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

7,089

5.47

Japan Trustee Services Bank, Ltd.(Trust Account)

5,307

4.10

Sumitomo Mitsui Banking Corporation

5,049

3.90

SSBTC Client Omnibus Account

2,470

1.90

Nippon Life Insurance Company

1,592

1.23

Northern Trust Co. (AVFC) RE HSD00

1,544

1.19

The Dai-ichi Life Insurance Company, Ltd.

1,535

1.18

Japan Trustee Services Bank, Ltd. (Trust Account 5 )

1,273

0.98

Toyoda Gosei Employee Stock Ownership Association

1,262

0.97

Note: Share-holding stakes are calculated after deducting treasury shares.

Toyoda Gosei Group Companies（As of April 1, 2019）
Company nameProducts/business sectors

CapitalEquity stake（%） Business partner

Japan
Ichiei Kogyo Co., Ltd.

JPY 457 million

65

---

Hinode Gomu Kogyo Co., Ltd.

Metal parts, Safety Systems
Weatherstrips,
Functional Components
Interiors and Exteriors,
Hoshin Gosei Co., Ltd.
Safety Systems
Toyoda Gosei Interior Manufacturing Co., Ltd. Interiors and Exteriors
Weatherstrips,
Kaiyo Gomu Co., Ltd.
Functional Components
Miscellaneous goods sales, contract work
TG Welfare Co., Ltd.
(employment for people with disabilities)
Transport, warehousing, vehicle
TG Logistics Co., Ltd.
maintenance, subcontracting, etc.
Tecno Art Research Co., ltd.
Design, planning, model creation
Building cleaning and maintenance,
TG Maintenance Inc.
equipment maintenance andmanagement, building security
TG Opseed Co., Ltd.
Applied optoelectronics products

JPY 473 million

100

---

JPY 230 million

100

---

JPY 80 million

100

---

JPY 36 million

53.6

---

JPY 10 million

100

---

JPY 30 million

100

---

JPY 152 million

34.2

---

JPY 20 million

100

---

FTS Co., Ltd.
TGAP Co., Ltd.
TG-Techno Co., Ltd.
Chusei Gomu Co., Ltd.
TS Opto Co., Ltd.
TG East Japan Co., Ltd.
TG SPORTS Co., Ltd.
Toyoda Gosei Kyushu Co., Ltd.

68

Fuel tanks, fuel system parts
Interiors and Exteriors, Supplies,
prototypes
Mold design, staffing, business contracting
Weatherstrips, Functional Components
Manufacture and sales of optoelectronics
products
Northeast Japan regional headquarters
and production company
Management of volleyball team andplanning and operation of related projects.
Weatherstrips, Functional Components,
Interior and Exterior Parts, Safety Systems

JPY 480 million

100

---

JPY 3 billion

23.8

---

JPY 36 million

100

---

JPY 20 million

100

---

JPY 396 million

33.4

---

JPY 490 million

100

---

JPY 490 million

100

---

JPY 90 million

100

---

JPY 3.5 billion

100

---

Value Creation Strategy

Company name

Foundation Supporting Value Creation

Products/business sectors

CapitalFinancial Report

Equity stake（%） Business partner

AmericasToyoda Gosei North America Corporation
TG Personnel Services North America, Inc.
TG Missouri Corporation
TG Kentucky, LLC
TG Fluid Systems USA Corporation
TG Automotive Sealing Kentucky, LLC
TGR Technical Center, LLC
Toyoda Gosei Texas, LLC
Toyoda Gosei BrownsvilleTexas, LLC
Toyoda Gosei Holdings Inc.
Waterville TG Inc.
TG Minto Corporation
TAPEX Mexicana S.A. DE C.V.
Meteor Sealing Systems, LLC
LMI Custom Mixing, LLC
Toyoda Gosei Automotive Sealing Mexico, S.A. de C.V.
Toyoda Gosei Personnel Services Mexico, S.A. de C.V.
Toyoda Gosei Rubber Mexico, S.A. de C.V.
Toyoda Gosei Irapuato Mexico, S.A. de C.V.
GDBR Industria e Comercio de Componentes
Quimicos e de Borracha Ltda.
Pecval Industria Ltda.

North American regional headquarters USD 264.73 million
USD 100,000
North American personnel agency
USD 30 million
Interiors and Exteriors, Safety Systems
USD 54 million
Interiors and Exteriors, Functional Components
USD 10 million
Functional Components
USD 33 million
Weatherstrips, Safety Systems
USD 13 million
Evaluation of safety system products
USD 22 million
Interiors and Exteriors
USD 3 million
North American logistics company
CAD 65 million
WTG, TG Minto holding company
CAD 30 million
Weatherstrips
CAD 27 million
Interiors and Exteriors
MXN 201 million
Safety Systems
USD 8 million
Weatherstrips
USD 7.7 million
Weatherstrips
MXN 778 million
Weatherstrips
MXN 1 million
Mexican personnel agency
MXN 19 million
Functional Components
MXN 781.8 million
Interiors and Exteriors, Functional Components
Weatherstrips, Interiors and Exteriors,
BRL 90 million
Safety Systems
BRL 142.1 million
Interiors and Exteriors

100--100（TGNA100%）--80（TGNA80%） Mitsui & Co.
100（TGNA100%）--100（TGNA100%）--100（TGNA100%）--60（TGNA60%）
TRAM
100（TGNA100%）--100（TGNA100%）--100--100（TGH100%）--100（TGH100%）--100（TGNA100%）--100（TGM100%）--45（TGM45%）--100（TGNA100%）--100（TGNA100%）--100（TGNA100%）--90（TGNA90%） Toyota Tsusho
Toyota Tsusho,
94.8
others
100
---

Asia
Toyoda Gosei Asia Co., Ltd.

---

Tianjin Star Light Rubber and Plastic Co., Ltd
Toyoda Gosei Optoelectronics (Shanghai) Co., Ltd.
Toyoda Gosei (Zhangjiagang) Co., Ltd.
Toyoda Gosei (Foshan) Rubber Parts Co., Ltd.
Toyoda Gosei (Tianjin) Precise Plastic Co., Ltd.

Thai regional headquarters
Safety Systems, Interiors and Exteriors,
Functional Components
Weatherstrips, Functional Components
Safety Systems, Functional Components
Sales of weatherstrip products
Safety Systems
Safety Systems, Interiors and Exteriors
Safety Systems, Weatherstrips,
Functional Components
Functional Components
Weatherstrips, Functional Components
Safety Systems, Interiors and Exteriors
Development, manufacture, andsales of optoelectronics products
Design/technical development,
sales/procurement
Functional Components, Safety
Systems, Interiors and Exteriors
Weatherstrips
Optoelectronics product sales
Safety Systems, Interiors and Exteriors
Weatherstrips, Functional Components---

Toyoda Gosei (Foshan) Auto Parts Co., Ltd.

Interiors and Exteriors

USD 19.1 million

Hubei Toyoda Gosei Zheng Ao Rubber & Plastics
Sealing Science and Technology Co., LTD.

Weatherstrips

RMB 46 million

60

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

Weatherstrips
Market surveys, sales administration

USD 2.9 million
KRW 300 million

25.2
100

Hubei ZhengAo
Automotive
Accessories Co., Ltd.
Tai-yue Rubber---

Toyoda Gosei Europe N.V.
Toyoda Gosei UK Ltd.

Design and technical development sales
Weatherstrips, Interiors and Exteriors

EUR 500,000
GPB 38 million

100
91.1

--Toyota Tsusho

Toyoda Gosei Czech, s.r.o.

Safety Systems, Functional
Components, Weatherstrips

CZK 970 million

80

Toyota Tsusho

Toyoda Gosei Meteor GmbH
Toyoda Gosei South Africa (Pty) Ltd.

Weatherstrips
Safety Systems, Weatherstrips

EUR 25,000
ZAR 6 million

100
65--Toyota Tsusho

Toyoda Gosei (Thailand ) Co., Ltd.
Toyoda Gosei Rubber (Thailand) Co., Ltd.
P.T. Toyoda Gosei Safety Systems Indonesia
P.T. TG INOAC Indonesia
Toyoda Gosei Haiphong Co., Ltd.
Toyoda Gosei South India Pvt. Ltd.
Toyoda Gosei Minda India Pvt. Ltd.
Minda TG Rubber Pvt. Ltd.
Tai-yue Rubber Industrial Co., Ltd.
Fong Yue Co., Ltd.
TE Opto Corporation
Toyoda Gosei (Shanghai) Co., Ltd.
Tianjin Toyoda Gosei Co., Ltd.

THB 824 million
THB 400 million

100

78.5（TGAS78.5%） PPC,others

THB 600 million
USD 8.5 million
USD 200,000
USD 54 million
INR 304 million70（TGAS70%）
80
51
95
95

PCR
AOP
INOAC
Toyota Tsusho
Toyota Tsusho

INR 4.4 billion

91.8

Uno Minda

INR 505 million
TWD 149 million
TWD 200 million

49
45
75

TWD 23 million

51

Uno Minda
Hongyu I&D. others
Hongyu I&D. others
Epistar Corp.,
TWIN HILLUSD 2 million

100

RMB 200 million

90.1

USD 7.9 million
USD 400,000
USD 46 million
USD 16.5 million
USD 10.53 million

100
85
97.95
70
98.6

--Toyota Tsusho,
others--Mr.Cheng
Kanto Kasei
Tai-yue Rubber, others
Toyota Tsusho

95（Toyoda Gosei
65%, Fong Yue 30%） Toyota Tsusho

Europe & Africa

69

1 Haruhinagahata, Kiyosu, Aichi,
452-8564, Japan
Public Relations Dept., General Administration Division
Phone: +81-52-400-1452 Fax: +81-52-409-7491
https://www.toyoda-gosei.com/
2019.9.1,500 TP Japan