About Toyoda Gosei

Toyoda Gosei’s Management Capital

Value Creation Story

Value Creation Strategy

Foundation of Value Creation

Data

Management capital cultivated over more than
70 years of history* This data is current as of March 2023 (the number of locations only is current as of July 31, 2023).

Management capital is an important source of sustainable enhancement of corporate value.
Toyoda Gosei builds management capital through repeated cycles of value creation based on ourmanagement philosophy, and invests capital at the appropriate time in business opportunities and risks that
we foresee.

Human CapitalTransformation into a dynamic “polymer-like organization”
that supports corporate evolution and growth

Number of employees

Toyoda Gosei operates in 16 countries and regions around the world with 62
Group companies. We aim to achieve sustainable evolution and growth bybecoming a dynamic polymer-like organization that brings out the individuality
and power of employees with diverse values and talents from different
nationalities, genders, ages, and lifestyles, and generates new creativity andpower through organic linkups.

38,942

Ratio of overseas employees: 75.7% Ratio of local executives: 32%
Women in management positions (non-consolidated): 33
Ratio of mid-career hires in management positions (non-consolidated): 31.3%
Diversity & Inclusion

Manufacturing
Capital

Number of locations

62(July 31, 2023)

Social andRelationship Capital
Number of suppliers(non-consolidated)773

In order to meet the needs of our customers around the world in a timely manner,
we have established sales and technical structures that are closely linked to eachregion and an optimal global production and delivery system. In addition, we areenhancing our manufacturing capabilities by innovatively evolving ourmanufacturing methods and production facilities based on our knowledge ofrubber and plastics, a strength we have cultivated for more than 70 years.
We have adopted Internal Carbon Pricing (ICP) and make investment decisions
based on the balance between the global environment and economic activities.

The auto industry is undergoing a major transformation with the conversion
to electrification and automated driving. In order to realize our management
vision, smooth cooperation with various stakeholders is important. Throughrepeated and careful dialogue with stakeholders and by providing value tosociety, we will build and maintain strong relationships of mutual trust andcontinue to evolve steadily while flexibly adapting to a challenging businessenvironment.
Joint university research (Nagoya University, Osaka University, Tohoku University)
Individual meetings for analysts and institutional investors: 109
Social Initiatives

P.62

Providing safety, comfort, and decarbonization to customers
around the world by leveraging our global network andknowledge of rubber and plastics

Building strong relationships with stakeholders throughcareful dialogueNatural Capital
Total energy input

2.311 million GJ** Gigajoule = 1,000,000,000 J

Capital investment cost: 48.8 billion yen
CO2 emissions reduction (non-consolidated): −32.2% (compared to FY2015)
Competitive Advantages P.15

R&D expenses

34.2 billion yen
22

Pursuing the possibilities of polymers and refining our one-ofa-kind R&D capabilities to further enhance our competitiveness
It is important for us to anticipate the needs of society and our customers, and tohave the technological capabilities to offer solutions that focus on the futurechanges with the changing automobile industry. R&D capabilities are the source ofour corporate growth, and we have invested approximately 100 billion yen in R&D
over the past three years to conduct R&D for new and existing businesses that
pursue the potential of polymers. We are further enhancing our competitive
advantages by utilizing IP landscaping and other techniques to improve theaccuracy and speed of our decision-making process for new business development.
Development and engineering staff (non-consolidated): 2,293
Number of patents held: 4,835
Financial and Non-Financial Highlights P.96
Competitive Advantages P.15
Research and Development P.30
Intellectual Property Strategy P.36

Financial Capital
TG-ROIC*

8.2%(FY2022)

P.99

Initiatives for climate change and resource recycling utilizing theenvironmental technologies and knowledge we have developed
In 1993, we launched our full-scale environmental initiatives with the First
Environmental Action Plan, and have been vigorously implementing various
initiatives for about 30 years. Natural capital is the source of materiality (keyissues) and outcomes, and by further advancing the knowledge andtechnologies for environmental conservation, which we have cultivated, andthe knowledge in the rubber and plastics fields, which are our competitiveadvantages, we aim to efficiently invest natural capital in resources andreduce environmental impact, thereby achieving both conservation of the
global environment and resources and the creation of economic value.
Total material input: 38,935 t
Water resource input: 1.05 million m3
Renewable energy input: 34,000 GJ
Acquisition rate of ISO 14001 for production sites: 100% (environmentalmanagement system)
Materiality

IntellectualCapital

IR Activities

P.60P.18

Environmental Initiatives

P.54

Sound financial management to support sustainablegrowth and enhance corporate value
Continuous investment in machine equipment, R&D, and alliances isnecessary to achieve sustainable growth and enhance corporate value.
We maintain the stability of our financial base through healthy financial
management and achieve sustainable growth by effectively using financial
capital when necessary. We will practice more multifaceted financial
management by adopting new management indicators such as TG-ROIC andevaluating the creation of corporate value.
* TG-ROIC =Operating profit
Non-current assets + Inventories

ROE: 3.6% (March 2023)
Financial Policy: Message from the Chief Financial Officer
Financial and Non-Financial Highlights P.96

P.43

T OYODA GOSEI REP OR T 20 2323