TOYODA GOSEI REPORTEditorial policy

Management Philosophy

Boundless Creativity and Social Contribution
Good corporate citizenship

Customer satisfaction

We, as a good corporate citizen, contributeto the economy and society throughcommunity-based business activities andsocial action programs.

We aim to provide products and services
with satisfying quality and price in a timely
manner, through forward-looking R&D
and production engineering.

Proper business operation
We promote business operations withintegrity through the establishment of asystem founded on thorough complianceand corporate ethics.

Conservation of global
environment and resources
We aim to conserve the global environmentand resources in order to hand down agreener world to our children through every
business activity, which includes cooperation with society and the development ofan environment-friendly product and manufacturing process.

This report was compiled with the aim of providing
shareholders, investors, and all other stakeholders with adeeper understanding of the Toyoda Gosei Group. It describes
the ﬁscal 2017 business performance of the Group andexplains the Group’s strategy and efforts for creating medium
and long-term value. Every effort was made to keep the Reportstraightforward and understandable. The investor relations(IR) report was prepared with reference to the International
Integrated Reporting Framework of the International
Integrated Reporting Council (IIRC), while the environmental,social, and governance (ESG) report was prepared withreference to the Global Reporting Initiative (GRI) Standards.

Reference guidelines
・International Integrated Reporting Framework(International Integrated Reporting Council (IIRC))
・GRI Standards (Global Reporting Initiative)
・Environmental Reporting Guidelines, 2012 Edition(Ministry of the Environment, Japan)
・Environmental Accounting Guidelines, 2005 Edition(Ministry of the Environment, Japan)＊Environmental data is available on our website.
For CO2 emissions we received third-party veriﬁcation.
http：//www.toyoda-gosei.co.jp/csr/

Period covered by report2

Respect for the individual

We aim to build up the TG Group's collective
strength through an open and fair relationshipwith suppliers, through a mutually strengthened corporate structure and innovative management response to change.

We aim to establish a vibrant corporate
culture through respect for individuality
and the value of enhanced teamwork, basedon shared responsibility and mutual trust
between employees and management.

Toyoda Gosei Group
2 Management Philosophy
3 Editorial Policy, Contents
4 History of Toyoda Gosei
6 Business Sectors, Locations

Vision and Value Creation Process
8 Toyoda Gosei’s Value Creation Process
10 Financial and Non-Financial Highlights
12 Letter from the President
16 New Medium and Long-TermBusiness Plan, “2025 Business Plan”

Foundation Supporting Value Creation

April 1, 2017 to March 31, 2018
This report principally covers the period above, but content
related to other periods may be included as needed.

22 CSR

Scope

32 Social〈S〉

Toyoda Gosei GroupThe scope is outlined individually for some items.

40 Governance〈G〉

Date of issue

Sustainable growthContents

November 2018
(Last published in August 2017; issued once a year)

Disclaimer
Careful attention was paid to the content of this Report, but
accuracy and the timing of updates is not guaranteed and Toyoda
Gosei shall bear no responsibility for trouble, loss, or damage
resulting from updates or errors in the information herein.

24 Environment〈E〉

Financial Report
48 Consolidated 11-Year Financial
Summary

50 Financial Review
52 Consolidated Financial Statement
56 Company, Investor Information3

Toyoda Gosei Group

Vision and Value
Creation Process

Foundation Supporting
Value Creation

Financial Report

History of Toyoda Gosei
2011

Lightweight radiator hoses

Since its founding, Toyoda Gosei has provided new value to the world through2018

manufacturing that meets the needs of the times with original technology in the

Glass run for ﬂush surface door

ﬁelds of rubber and plastics.
Plastic water pipes

2010

Nylon fuel hoses

AutomotiveParts

Net sales（Billions of yen）

2014

1983

Lightweight opening
trim weatherstrips

900

2003

Two-color molded
opening trims

1977

Constant velocity joint boots

Large radiator grilles

Sound insulating glass runs

1961

2015

Piston cups

Capless fuel ﬁllers

700

2008

1953

Rubber

800

2017

1982

Plastic fuel ﬁller pipes

1963

Brake hoses

Flocked glass runs

2000

Noise absorbing air
intake ducts

2017

Steering wheel with grip
sensor / new type of side airbag

1982

600

Plastic fuel ﬁller caps

1950

2008

Weatherstrips

500

Rear-end impact airbags

1998

Curtain airbags

1974

Instrument panels

1989

400

Driver-side airbags

2010

1960

Start of R&D for
GaN power
semiconductors

PP steering wheels

Plastics

1954

2017

Conclusion of exclusive
license agreement forthe main material(supramolecules)in e-Rubber

Plastic injection steering wheels

New Fields

1991
1986

Start of R&D forblue LEDs

Success in developmentof blue LEDs is certiﬁed

300

200
2007

Start of R&D for e-Rubber

100

1949

1960

Early years [1949～1979]
1949 Nagoya Rubber Co., Ltd. is

1957
1967
1973
1976
1977
1978

4

established as a spin-off of therubber research division of Toyota
Motor Industry Co., Ltd.
Haruhi Plant begins operation
Inazawa Plant begins operation
Company name is changed to Toyoda Gosei Co., Ltd.
Morimachi Plant begins operation
US Ofﬁce is established in Illinois
Company is listed on the Nagoya Stock Exchange

1970

Expansion [1980～1999]
1980 Headquarters is relocated to present location
1982
1985
1985
1986
1997
1999

(Kiyosu, Aichi Prefecture)
Bisai Plant is completed and begins operation
Capital participation in Tai-yue Rubber Industrial Co., Ltd.
Company wins Deming Prize for Total
Quality Management
TG Missouri Corporation is establishedCompany obtains ISO 9001
Present Kitajima Technical Center is completed
Company is listed on the Tokyo Stock Exchange
Toyoda Gosei North America Corporation is established

1980

1990

2000

Becoming a global corporation [2000～2009]
Toyoda Gosei Europe N.V. is established
Toyoda Gosei Asia Co., Ltd. is established
ISO / TS16949 certiﬁcation
Toyoda Gosei (Shanghai) Co., Ltd. is established
Toyoda Gosei Minda India
Pvt. Ltd. is established2009 Miwa Technical Center isestablished

2000
2001
2005
2006
2008

2010

2017

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 andstart of operations
2018 Toyoda Gosei Minda India Pvt. Ltd.
Completion of Gujarat Plant andstart of operations

5

Toyoda Gosei Group

Vision and Value
Creation Process

Foundation Supporting
Value Creation

Financial Report

Business Sectors, Locations
Toyoda Gosei Group business sectors

Global Network （FY2017）

Automotive Parts

Sales by ﬁnancial segment

Group companies

67

131.9 billion（16.3 ）Weatherstrips¥％

Weatherstrips seal the gaps at door and window frames to keep out wind,rain, and noise. These products are essential for comfortable cabin interiors.

companies

806.9 billion¥
Door glass runs

（FY2017）

Opening trim
weatherstrips

Asia & Australia

24companies

Door weatherstrips

Functional Components

125.3 billion（15.5 ）¥％These rubber and plastic components support the basic vehicle functions of

Japan

17

companies

Other Areas

Americasdriving, turning and stopping. Toyoda Gosei technology ensures quality for

Europe & Africa

LEDs with new added value are being
developed.
Plastic fuel ﬁller pipes

Turbo ductsInteriors and Exteriors

21

LEDs

these key safety-related parts.

5

14.5 billion（1.8 ）¥Brake hoses％

companies

companies

309.5 billion（38.4 ）¥％Interior and exterior parts contribute to comfortable cabin spaces andattractive exteriors.
Solar LEDs

Deep ultraviolet LEDs
(developed product)

General Industry, New Fields
Instrument panel modules
and components

Safety Systems

Radiator grilles

We have used our automotive parts andConsole boxes

LED technology to develop and produce

225.5 billion（28.0 ）¥％We develop many types of airbags to protect vehicle occupants from impacts
from various angles. We also provide steering wheels and other products withproducts in various other ﬁelds. In particular, we are aiming for the early commercialization of e-Rubber, a next-generation
artiﬁcial muscle.

Sales by region

Employees by region

Japan

Japan

¥

381.3

（22.5％）

Americas¥

Americas241.2

billion

Asia & Australia

197.6

attractive design.

8,603

billion¥¥806.9 billion（FY2017）billionEurope & Africa¥
Airbags

6

Steering wheels(built-in airbags)

Pop-up hood actuators

e-Rubber(developed product)

Air puriﬁers

47.9
billion

13,122（34.3％）

Asia & Australia

13,41038,234（End of FY2017）（35.1％）

Europe & Africa

3,099（8.1％）

Note: Sales by region includes amounts for internal transactions within theGroup, and so does not match the total value for consolidated sales.

7

Toyoda Gosei Group

Toyoda
豊 田 合Gosei’s
成 の 価Value
値 創Creation
造 プ ロ ProcessセスhToyoda Gosei
stakeholders

e
lu
va

opportunities that

A society of well-being,safety and comfort

ofrisks andaffect Toyoda
Gosei

Value chain*

Environmental andsocial issues

Resolvingsocialproblems

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

Sales

Business activities

Procurementthat give rise to

Acceleration oftechnical innovation●

value in society

Production

IoT／AIElectriﬁcation

Interiors
andExteriors

SafetySystems

Development
and Technical
Design●●Financial Report

on
si
vi

Dealing withFoundation Supporting
Value Creation

o
Pr

it
g wr sniatdenic eholu
mm t akCo ny sma

Vision and Value
Creation Process

Automobile

LEDs,
Markets
General Other
Areas
Industry,
New Fields

Weatherstrips

Functional
Components

Changing values

Dealing withaging societies

Diversiﬁcation ofvalues● Changing consumer
behaviors● Ownership → shares●

Achievinga low-carbon
society

Strengths of
Toyoda Gosei

New businessdevelopment
experiences

Globalnetwork

Sustainable
company
growthKnowledgein the ﬁelds ofrubber andplastics

Contributing to
the local
community

Provision of safety
and comfort

Return of value

Sources ofvalue creation
Financial

Manufactured

Intellectual

Human

Social and relationship

Natural* Toyoda Gosei’s value chain

Development and Technical Design

P10-11Sincerity
8

Activity

Unity● Commercialization in new ﬁelds
utilizing core technologies● Development of new technologies andproducts coping with CASE
● Strategies of modularization andsystem products

Procurement● Globally standardized know-how and processes● Further promotion of TPS● "Jidoka "and manpower saving utilizing IT● Reduction of environmental burden
by production engineering reform

Production

Sales● Anticipating customer needs andintroducing high value-added products● Shift of resources to key ﬁelds throughselection and concentration● Pursuit of economies of scale andthoroughgoing efﬁciency and cost
reduction activities

9Toyoda Gosei Group

Vision and Value
Creation Process

Foundation Supporting
Value Creation

Financial Report

Financial and Non-Financial Highlights
Financial Data
Financial
Net sales

Operating profit / Profit attributable to owners of parent
Operating proﬁt（Billions of yen）

800

689.4

727.8

781.8

755.6

806.9

43.7

30

26.2

400
20
200
0

10

42.8

41.6

40

600

41.1

40.6

20.2

21.1

16.2

2015/3

2016/32017/3

2018/3 (Period)

0

9.8

80

8

7.1

2015/3

2016/32017/3

2018/3 (Period)

5.2
40

2015/3

2014/3

2016/32017/3

2018/3 (Period)

Annual dividends

Cash and deposits /Interest-bearing debt

（Yen）

（Yen）

（Billions of yen）

Cash and deposits

200

60

56.0

56.0

56.0

202.54

53.0

56.0

150

163.60156.49

40

80

20

40

125.42

100

29.1

29.5

28.4

27.1

2014/3

2015/3

2016/32017/3

2018/3 (Period)

51.6

51.6

51.7

50.7

49.6

2014/3

2015/3

2016/32017/3

2018/3 (Period)

27.8

0

Equity ratio

Interest-bearing debt
（％）

120

97.5

92.3
163.4443.0

20

Net income per share
250

55.2

54.4

4

0

64.8

64.7
60

6.6

6.6

2
2014/3R&D expenses（Billions of yen）

6

21.1

10
2014/3

Capital investment / R&D expenses
Capital investment（％）（Billions of yen）

50

Return on equity (ROE)

Proﬁt attributable to owners of parent

85.2 84.7
70.2

78.3

60

104.3 108.1
89.0

40

65.7

20

50
0

2014/3

2015/3

2016/32017/3

2018/3 (Period)

Non-Financial Data

2014/3

2016/32017/3

2018/3 (Period)

Intellectual

Capital investment

R&D expenses

billion/FY2017

We recognize capital needs with a longterm view for capital investment andfinancing in Japan and other countries,
including dealing with market
globalization and strengthening ourbusiness in growing markets.

10

2015/3

Manufactured

64.8

¥

0

27.8

¥

billion/FY2017

Taking advantage of our core technologies
in rubber, plastics and LEDs, we arecontinuing to develop new technologies
and products in various fields, such as
the e-Rubber that is promising for use insurgical training simulators in the field of
medicine.

0

2015/3

2014/3

2016/32017/3

Human
Training young people forinternational assignments

22

people/FY2017

We are giving business experiencein other countries with different
languages and cultures to young
people age 26 to 32 from an earlystage, with the aim of training
personnel who are prepared to act
globally in the future.

2018/3 (Period)

0Social and relationship
Number of business continuity
plan simulation trainings

25

times/FY2017

In preparation for a large-scale disastersuch as the predicted giant Nankai
Trough earthquake, we have establisheda crisis management system based onhuman life first, community support,
and early recovery. Disaster response
personnel across the company are
working to improve their skills.

NaturalAmount of CO2 reduced

6,000

t-CO2 /FY2017

The Paris Agreement went into effectin November 2016. In February ofthat year we established the “TG
2050 Environmental Challenge,” ourtargets for long-term challenges in theenvironmental field to be achieved by
2050.

11

Toyoda Gosei Group

Vision and Value
Creation Process

Foundation Supporting
Value Creation

Financial Report

Letter from the President

Achieving sustainable growth by

I would first like to extend my gratitude to our

responding flexibly and rapidly to

Massive business environment change

continues to change. One example is the tendency

There is intense competition in the automobile

the past. The capability to develop, design, and deliverindustry to develop autonomous driving, electric

products as modules or systems rather than single parts

vehicles and other new technologies, and it has spreadis expected to be a precondition for suppliers that will

globally with amazing speed. This and other changes

attract business from customers.

a dramatically changing environment

shareholders, investors and all other stakeholders.

Fiscal 2018 was a year of going all out
The composition of automotive parts themselves
for parts to be ordered in larger bundled units than inhave already brought huge waves of change to the

In the area of product development we areenvironment for our main business, but even bigger

responding to this shift by accelerating the developmentchanges are anticipated. To grow sustainably amid suchof product modules that add electronic components toa major shift, we will need to respond rapidly to change

our core technologies in rubber and plastics, where wewith an even greater sense of urgency, to be resolute inexcel in cockpit and front grille products.

seeking innovation without letting existing values holdus back, and to use limited resources effectively.

A look back on fiscal 2017

For this purpose we are increasing our collaboration
with others rather than doing everything ourselves,
while continuing to refine our strengths in rubber andplastics technology and our global reach. Throughpartnerships with suppliers, other businesses, startups

Last year we adopted the key words “foresee, prioritize

and others, we are adding to the store of knowledge

and take prompt action” with the aim of being moreboth inside and outside the company and making

strategic in our business endeavors.

concerted efforts in the spirit of ONE TEAM, ONE TG.

To strengthen our business foundations, we stepped

We believe this will lead to further growth.

up efforts to establish production sites in fast growing
developing countries. In India, which continues toexperience high growth, we started operations at our Bawal

Pr e s i d e n t

Formulation of 2025 Business Plan

Plant in the north and established a new plant in the state

In May 2018, Toyoda Gosei announced its mid- andof Gujarat in the west. In Brazil we acquired full ownershiplong-term business plan, the 2025 Business Plan, as aof Pecval Industries, a manufacturer of interior and exterior

concrete manifestation of our strategy. In this highly

parts, and in Vietnam we also established a new plant.

uncertain age, the 2025 Business Plan expresses

To further grow our business in airbags, which

our determination to take the changing businessare expected to see rising demand globally with theenvironment as an opportunity and to be a supplierintroduction of new or stricter safety regulations inof choice for global customers in areas where Toyoda

many countries, we have made a series of capital tie-

Gosei has a solid presence and superior products.

ups with major airbag parts manufacturers.

The 2025 Business Plan contains: (1) our newly

In product development, we were able to launch

red ef i ned exp res s ion o f wh at we aspire to be,

new, high-value added products on the market in the(2) business objectives for each field, and (3) threefields of safety and comfort. They included a steering

key areas of activity that form our underlying policy

wheel with grip sensor that can be applied in advanced

for achieving these objectives. We will steadily execute

driving support systems and new weatherstrips thateach item in the Plan with the aim of sustainable

received awards from our customers. At the Tokyo

growth. (See page 16.)

Motor Show, we exhibited next-generation concept
models and other displays with a view to the age ofautonomous driving that will soon be here, and visitors
to our booth gained a deep understanding of the future
we envision for the company.

1213

Toyoda Gosei GroupTo stakeholders —Our new management philosophy

on fulfilling their social responsibilities as a company.

Vision and Value
Creation Process

Foundation Supporting
Value Creation

Financial Report

Redeﬁnition of what
we want to be as a company

DiagramBased on the above, and with the idea of ourManagement
Philosophy

m a n a ge m e n t p h i l o s o p hy b e i n g a d e c l a ra t i o n t oManagement
Philosophy

Revisionstakeholders, we have reviewed its wording and replaced
In April 2018 we revised our management philosophy forthe first time in eight years.
Previously, ou r man age me n t p h i l os op hy wa s

certain items. (See below.)With the belief that a company is a public institutionthat is greatly dependent on economic and social

considered to be something for company executives

development, “Good corporate citizenship” is positioned

and employees. In recent years, however, the value ofas the first clause in our new management philosophy andcoexistence with all of our stakeholders, both inside and“Proper business operation” as the second. Clauses threeoutside the company, has taken on greater importance.

to five are declarations to each set of stakeholders, while

With the changes in society, it has also become moreclause six is a declaration to ourselves that forms theimportant for companies to openly express their thoughts

overall foundation for fulfilling our social responsibilities.

deliver the highest levels of
quality, innovation, andsatisfaction to customers
worldwide

Main stakeholders

All stakeholders

Companies cannot exist or grow without economic andsocial development. As a global corporation, we willconduct our business with consideration of differencesin cultures and customs and make positive efforts toresolve issues faced by local communities.

2. Proper business operation
Main stakeholders

All stakeholders

We will hold ourselves accountable in conducting fairand ethical business activities. We will comply with alllaws and regulations, build systems and mechanisms
to ensure sound and efficient management, and aim toearn the trust of our stakeholders.

3. Sustainable growth
Main stakeholders‌Shareholders, Toyoda Gosei
Group, suppliers

Toyoda Gosei’s growth and development is supported
by many suppliers. While making utmost efforts forfurther growth and development, we will improve thecollective abilities of the Toyoda Gosei Group to meetthe expectations of our wide range of stakeholders.

4. Customer satisfaction
Main stakeholders

Customers

As a manufacturer, delivering quality products andreasonably priced services to our customers in a timely
manner is among our first duties. For that purpose
we will make unceasing efforts for technical andmanufacturing innovations, stronger supply chains andother improvements.

‌
5. Conservation of global

environment and resources

Main stakeholders

Society

It is the duty of those of us living today to leave abeautiful earth for the future. An essential condition forour existence and activity as a company is to use theknowledge and skills we possess to aggressively tackle
environmental problems.

6. Respect for the individual●●

What we aspire to be
Management
objectives

Formulation●

What we aspire to be
Management
objectives*Target values for eachﬁeld

Pillars of activities●

Pillars of activities

Annual Corporate Policy

TG Spirit●

Customer Oriented
Challenge
Ownership●●●

Continuous Kaizen
Respect
Teamwork

TG Spirit●●●

Customer Oriented
Challenge
Ownership

The ESG (environmental, social, governance) movement
has attracted global attention recently. At Toyoda
Gosei we had already reflected that concept in the new
management philosophy mentioned above, and have been
focusing energy in those areas from the time before theESG concept arose.
One example of this can be seen in the fact that the●●●Continuous Kaizen
Respect
Teamwork

2018 ~

So far

ESG (environmental, social,governance) efforts

Toyoda Gosei aims to grow as a global
company that acts ﬂexibly and swiftly
in today’s dramatically changing business environment, delivering the highest levels of satisfaction to customers
worldwide through safety, comfort,
well-being and the environment*Speciﬁc efforts

Annual Corporate Policy

across the various business headquarters.
For CSR activities as well, we aim to be a company
with local roots that grows together with the community.
Employees carry out these types of activities at each of our
locations around the world, and will continue to do so in
the future.
From the perspective of governance, we will revise
our corporate governance code in a timely fashion andcontinue to be a company that meets the demands ofsociety for corporate governance.

predecessors to this report were the company’s environmental
reports. We have long made vigorous efforts to contributeto the environment, and were ranked tenth in the
manufacturing sector in the 2018 Nikkei Environmental
Management Survey.
The sustainable development goals (SDGs) for 2030
adopted by the United Nations in 2015 with global

Employees

agreement take up environmental problems as a major

We as individuals are the foundation that supports thegrowth of the company. With mutual respect and teamcooperation, we will aim for both personal growth andto be a company where employees can work with highaspirations and motivation.

issue and demand further strengthening and enhancement

Main stakeholders

2025
Business Plan●

*Basic concepts only●

1. Good corporate citizenship●

Looking ahead, share more
speciﬁc targets and efforts*Consolidated target
values only●

Declaration to stakeholders through our new management philosophy

TG 2020
VISIONA global supplier that aims toof environmental measures in each country and company.
In line with these trends, in January we moved thecompany’s Environment Division from the Production
Headquarters to the direct jurisdiction of the President.
This year we will conduct companywide, lateral activities

14

15

Toyoda Gosei Group

Vision and Value
Creation Process

Foundation Supporting
Value Creation

Financial Report

New 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 tolong-term business plan, we lay out three key areas that takeexpand the scope of our business, but also new efforts toadvantage of the Toyoda Gosei Group’s cultivated strengths.

contribute to society and to grow sustainably.

Venture into innovation, new mobility

PILLAR Ⅰ● Early realization of new business through innovative technology
What we aspire to be

PILLAR I

FY2017

FY2025Net sales￥807 billion￥1 trillion

Operating profit ratio

5.1％

ROE (Return on equity)

6.6％

PILLAR Ⅱ▲

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％

In “Venture into innovation,” we are looking toward the early

PILLAR Ⅲ● Develop and establish e-Rubber business and cultivate its

pillar. Crucial here will be to launch new technologies and● Develop and commercialize power devices (high-frequency

New Technology, New Products

Current Products

Current Products●Globally standardized production
know-how and processes

business resources● Development of new technologies●Further promotion of TPS● Make current products more

and products coping with CASE

highly value-added● Strategies of modularization and●"Jidoka " and manpower saving
utilizing IT● Business plan executions throughsystem products●Reduction of environmental burdencooperation with customers andby production engineering reformbusiness partners● Development of new technologies and products responding to drastic changes of
the car itself (CASE)

Early realization of new business throughinnovative technology

Innovative manufacturing at
production sites

utilizing core technologies

differentiated technologies

Key points for implementation

Strategy for growing
markets / fields● Selection and concentration ofnnovation derived from TG core technologies (rubber & plastic materials/LED)

Contribution to near future needs of relief (environment and health), safety, and comfort throughKey action items

10％

Venture into innovation,
new mobility● Commercialization in new fields

・I・

Course ofactionFinancial objectives

establishment of the new businesses that will be our next

market (innovative soft-robot)

business plans with consideration of the company’s businesspower source, wireless power supply)and value chain, and to accelerate innovations with partners
with whom we can carve out businesses together, without● Develop high-value-added LEDs and their applications

insisting on doing everything ourselves.

Development of new technologies and products
responding to drastic changes of the car itself (CASE)

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 to develop● Create new values/new products for the next generation(Autonomous driving/vehicles, electrification)

new technologies and products compatible with the drastic● Enhance added-value of conventional products

changes that are occurring in automobiles themselves (CASE).

(Modularization, systemization)

For example, by continuing to develop new products and raise
the added value of existing products (modularization), we will

● Develop technology to sustain new products(Light weight, innovative manufacturing processes)

be able to meet the new expectations of customers worldwide.

SPOTLIGHT

Enhancement of the business foundation● Strengthening global operation● HR development● Business activities with integrity

Venture into innovation ❶“e-Rubber,” a next-generation rubber that functions with electricity and mechanical force
Key words for our activities

PILLARⅠ. Venture into innovation, new mobility
Power semiconductors
e-RubberLighter weight

High-value-added LEDs
*CASE compliance
FCV compliance

Modularization

Consolidated net sales (100 million yen)

PILLARⅡ. Strategy for growing markets/ﬁelds
Expanded business in India
Expanded safety systems business

Increased N. American capacity

Expanded fuel system business

Increased non-Toyota sales

e-Rubber is a rubber artificial muscle that has been underdevelopment for more than 10 years. TG has concluded an
exclusive license agreement with a Tokyo University startup,and has been making approaches to companies in a wide
range of fields, including medicine, nursing care and welfare,Accelerated cooperation

IoT, and robots. We are also aiming to establish new business

Higher value-added interior and exterior products

opportunities in the automobile business. We have alreadydeveloped a surgical training simulator in collaboration with

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

2017

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

Automation/manpower reductionsa Waseda University venture. Sales are planned to start in theautumn of 2019. We also have ongoing projects in fluid control,

Reproducing the beating of the heart by taking advantage of thecharacteristics of e-Rubber, which maintains its properties well andmoves quickly

haptics, pressure sensors and other areas.

Flexible production
TPS (Toyota Production System)

IoT production control
Loss/waste reduction

Promising areas of use
RobotsMedicine

Automobiles

IoT/haptics

Elder care/ Welfare

2025* CASE : Connected Autonomous Shared Electric

16

17

Toyoda Gosei Group

Venture into innovation ❷GaN power semiconductors―Energy-saving key devices with theapplication of LED technology.
Next-generation type of power semiconductors (electronic components thatconvert/control power). Using the gallium nitride (GaN) crystal growth technology
cultivated in the development and production of LEDs, we are developing products

Foundation Supporting
Value Creation

Financial Report

Strategy for growing markets / fields

PILLAR Ⅱ
Course ofactionVision and Value
Creation Process● ‌Prioritized global sales expansion and securing profit (selection andconcentration of business resources)that contribute to more efficient and smaller electronic devices.

Key action items

Key points for implementation

Promising areas of use

Redefine the strategy by business field

Looking at markets and trends for existing products by●‌Weatherstrips: Noise reduction, profit reform in prioritized regions

product field, we see much potential for growth including

Wireless power supply

Mobility

Solar power generation

Industrial equipment●‌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

Venture into new mobility

Next-generation cockpit moduleof increasing safety regulations. We are now making solid
preparation for this. On regional axes, we need to ensurecompetitiveness in China, India and other emerging markets
where automobile production is increasing, as well as in the
major markets of North America and elsewhere. There areproduction increases, sales expansion to non-Toyota/non-JPN OEMs

many possibilities for expanding sales to major customers,●‌China: Sales expansion of global link cars (Toyota, non-JPN OEMs)

actively cultivating new customers, and increasing future profits.

●‌India: Sales expansion to catch up with the growth of the market(mainly J-OEMs)

functions for communication between

increased business in SS products with the favorable conditions●‌North America: Enhance production capacity for major customers'

and new customers

Equipped with human-machine interface

modularization and higher added value in IE products and

To ensure that this potential growth in existing products leads
reliably to sales and profits, we will deploy a focused strategy,
selecting and concentrating management resources, pursuingpeople and vehicles, creating a more secure

economies of scale, and thoroughly increasing efficiency.

and comfortable interior space.

Rapidly growing Indian automobile
marketThe United States has been a leader in safety regulations,

Automobile production in India is predicted to grow to

introducing the world’s first New Car Assessment Program

about 6 million units in 2020. Today India is the world’s fifth(NCAP) forty years ago. After that airbags spread rapidly

largest automobile producer, but it is likely to become thewith the adoption of laws to make front impact airbags

third largest in the near future. It introduced an automobile

standard. This was followed by assessment regulations in

impact safety performance test in 2017 and made both

Instrument panel transmissive display

Japan and Europe, and in recent years this trend has spread

driver side and passenger side airbags compulsory. India● Display instrument panel

to Southeast Asia, India, China and other countries of thehas developed original exhaust regulations, which will

world. These regulations are becoming stricter each year,

become stricter in 2020. It is a promising market for sales

and demand for airbags is expected to grow.

and business growth in SS and FC products with safety and

Next-generation cockpit module

Contact sensors
Camera authentication● Smart steering wheels
Drivers’ physical status sensed withbuilt-in cameras and sensors

Touch sensor● Multifunctional console・‌Movable console to accommodate
relaxation mode (posture changes)
・‌Handier, more intuitive operation
with touch panel

External and warning information
displayed on instrument panel

environmental technology.
Safety regulations (assessments) have spread across the world(Prepared with reference to individual country NCAP sites)（10,000 units）

800‌Sensor functions that support autonomous driving integrated in

600

18

500

● Plastic bodies
・‌Contributes to longer
cruising distances of EVs
through lighter weight・‌Greater design freedom
with plastic

Approx. 1.5-foldincrease by 2023 581

700

lightweight plastic body・‌Equipped with cameras andradar, etc., that do not detractfrom external appearance・‌Car’s direction and otherinformation communicated topeople nearby with LED lights

Automobile production in India(Source: IHS August 2017)

Next-generation front module● Integrated grille

SPOTLIGHT

New or stricter safety regulations in countries
around the world

Automobile production inIndia has steadily increased400● Australia（1993） ● Japan（1995） ● Europe（1997） ● Korea（1999）● Russia（2001）● China（2006）● South and Central America（2010）● Southeast Asia（2011） ● India（2017）● South Africa（2017）

Next-generation front module

In recent years, an increasing number of developing countries are introducing
regulations while those in developed countries become stricter

200

387

2012

2015

427

448

2016

2017

269

300
● U.S.A.（1978）

375

725

178

100
0

2006

2009

2020

(Forecast)

2023 （Year）(Forecast)19

Toyoda Gosei Group

Course ofactionBasis for
ActionInnovative manufacturing at production sites

PILLAR Ⅲ● ‌Realizing highly value-added factories through innovative manufacturing at
production sites

Foundation Supporting
Value Creation

Financial Report

Enhancement of the business foundation● ‌Strengthen global management, HR development, and perform/undertake
business activities with integrity

Key action items

Key points for implementation

Key action items

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

In the coming years existing products will need a further

Enhance global business management

Today, TG’s international locations account for more than half of● ‌Develop compact and lean production lines, TPS promotion (1/ncompetitive edge. To achieve that edge, we will need to makeprocesses more efficient and versatile, standardize effective● Self-sustainable overseas affiliates and governance by HQ

company profits, and it is important that we strengthen global

process, consolidation of supply parts, flexible process withmultiple products)● ‌Promote manufacturing, "Jidoka " and manpower saving
utilizing IT (IoT, AI)● ‌Reduce environmental burden through production engineering
innovation and recyclable energy

new practices, knowledge and techniques across the company,
and create mechanisms so that these things can be shared andspread rapidly and globally to Group companies and vendors.
We will also make efforts to allot resources to new fields andintroduce automation and labor-saving processes in aging

innovate in production floor manufacturing.

SPOTLIGHT

business, and we need to focus efforts on thorough compliance● Strengthen quality assurance systems(cope with emerging countries and new technologies/products)● Development of global HR, professional HR

data science personnel who can utilize big data to steadily

These days it does not take much to shake the foundations of a

● Strengthen supply chain (production and supply system)compact, low-investment lines to improve productivity.

among engineers with knowledge in rubber and plastics, core

and the head office in Japan serving as the global headquarters.

● Cooperation with global business partners

HR development

improve production and work efficiency and develop, fromgovernance with independence in each region and location● Globally optimized production layout and logistics reformsocieties with fewer workers. Processes will be carried out on
The key to all this will be IT. Utilizing IoT and AI, we will

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 ourgoals. Whatever the challenge, human ability is what allows● Diversity, work style reform

us to overcome it. We are conducting business activities with

Business activities with integrity

integrity, and promoting diversity and reform in the way we● ‌Thorough compliance and enhancement of internal controls
as a company of integrity

and risk management. At the same time, we are reforming

work.

SPOTLIGHT

who can analyze and use big data. This will increase competitiveness on theStrengthening business
operations in collaboration
with global partners

The TG Learning Center was established in January 2017 as the

production floor.

In the growing Indian market, TG has partneredcompany’s headquarters for human resources development. We arestrengthening TG’s foundations by creating a system that places greater

Establishment of Inabe Plant
for environmentally-friendly
FCV products

Process kaizen with the use of big data

A new plant has been established in the

The Toyota Group is collaborating with Shiga University to train people

Organizational promotion of sustainablegrowth in employees

city of Inabe in northern Mie Prefecture,

At our Morimachi Plant, big data was used to improve the appearancewith India’s Uno Minda Group, an expert inJapan to produce high-pressure hydrogenquality of weatherstrips. We had previously taken measures to deal withlocal business practices, since 2011. The Unoemphasis on human resources development, including a comprehensive

tanks for fuel cell vehicles (FCVs). This isproblems based on the experience of veteran workers, but some unresolved

Minda Group has a history of about 60 years

review of training programs, an expanded educational system for training

TG’s twelfth plant in Japan. As a “front-line

issues remained. Then, using big data collected from production equipment,in the Indian automobile industry, and has

by rank and type of skill, participation in the Skills Olympics, and support

eco plant” suitable for the production of athe entire process was analyzed again and the cause of the problems wasgrown to have 52 factories and 8 research andfor the acquisition of public qualifications. Our next efforts will be forkey component of FCVs, we are introducing

traced back to the previous process of rubber materials kneading, which isdevelopment centers in the country. To meetGroup-wide personnel development, creating a support mechanism tocompact, energy-saving equipment to reduce

the stage before the processes where we had taken measures up to that time.

the needs of customers in the coming years, wecultivate human resources at affiliates in Japan and internationally andCO2 emissions during production and using

The problems were successfully eliminated by making improvements in theare building an optimum production and supply

developing similar functions in the four global regions.

renewable energy, plus automated, labor-kneading time, temperature and other factors.

network through collaborations that utilize thesaving processes using the latest information

The use of big data in addition to the experience that has been cultivatedtechnology (IoT, AI) and other technology.

by veteran workers will increase the accuracy and speed of production kaizen .

Operations are scheduled to begin in early2020 with innovative manufacturing.

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

Weatherstrip
production
process

Rubber materials
kneading process

The Inabe Plant, TG’s twelfth plant in Japan

20

Course ofactionVision and Value
Creation Process

A process thatmixes the raw
materials in rubber

Chemicalkneading process

Molding
process

A process where sulfur
and other chemicals
are mixed inmutual strengths of partners and vendors.

Division
General Manager

Processes in which anti-defectmeasures have been taken

Vulcanizing
process

Processing/shearing

Processes from raw materials toﬁnished products

Level-specific education system

President Naoki Miyazaki shakes hands with Chairman
Nirmal K. Minda (right) of the Uno Minda Group

Skilled workers, ofﬁce workers,
technical workers

Department General Manager,
Division Deputy General Manager

Strategic thinking abilityGroup Manager,
Section Manager

Coaching ability

Assistant Manager,
Supervisor

Skilled workers,ofﬁce workers

Midlevel employees

Issue formation/
resolution

New employees

Technical workers

Improve supervisors’
abilities and knowledge

Ability to think and act oneself,
problem-solving abilities

21

Toyoda Gosei Group

Vision and Value
Creation Process

Foundation Supporting
Value Creation

Financial Report

CSR

Approach to CSR

Relationships with stakeholders

E
Environmental
Preservation

With the company creed of “Boundless creativity
and social contribution,” we are undertaking

We strive in all our businessactivities to reduce environmental
impacts, starting with lightweightautomotive parts that contributeto better fuel efﬁciency.

a wide range of efforts in the key CSR areas ofenvironmental preservation, creating pleasant
workplaces, and creating livable communities
business activities that contribute to the creation

Development ofPeople and Workplaces
that Support Our Business

reduce injuries during accidents and lighter weightparts that contribute to improved automobile

We aim to create a dynamic
corporate culture with a strong
sense of unity, where all
employees can work insafety and health.

fuel economy and reduced carbon emissions, wewill grow sustainably as a company and meet the
expectations of our stakeholders around the world,
including customers, shareholders, investors,
employees, suppliers and local communities.

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 technologythat anticipates future changes.

Shareholders, investors

Our 2025 Business Plan clearly shows our medium andlong-term management targets and strategic policy forsustainable growth.

Communication●●●

based on good corporate governance. Throughof a better society, such as providing airbags that

StakeholdersS

As a member of each of
the communities where
we are located, we engage
in various efforts formutual growth.

G

Employees

Suppliers

Local communities

GovernanceTo continue earning the trust of society as a company of integrity we arestrengthening our global efforts for legal compliance and working to instilla strong sense of ethics in our employees.

National and local
governments, industry
organizations

We respect the individuality of each person while at thesame time increasing our collective strength throughteamwork, achieving a vibrant corporate culture withmeaningful work based on labor-management trust
and mutual responsibility.
Based on open and equal relationships with
suppliers, we strengthen each other’s corporate
cultures, strive for management innovation, andraise the collective Group strength.
We contribute as a good corporate citizen to developmentof the economy and society through business activities
rooted in each country and community and social
contribution activities.
We have built systems for strict legal compliance andthorough corporate ethics, and conduct our businessactivities with integrity.

Financial statements (4 times/year)
Financial results briefings (2 times/year), annual
shareholders’ meeting (1 time/year)
Website Individual meetings
IR tools (general reports, business reports)
Intranet/in-house communications
Workshops
Employee surveys (6 times/year)
Central labor-management consultations (5 times/year)
Departmental labor-management consultations (6 times/year)

●

●
●

Building Livable
Communities

CS/Business activities
Website

●
●
●
●

●

●

●
●

●
●

●

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●●Materiality determination process

STEP 1

STEP 2

Identifying issues

Judging the importance of each elementfrom internal and external perspectives

STEP 3

Materiality determination

The Toyoda Gosei Group identified issues

The issues for consideration identified in STEP 1 were placed on a

The important issues identified in STEP 2 were investigated by a project team made up of people from relevant departments,

to be investigated with reference to the GRI

materiality map. Based on interviews with experts and stakeholders,and nine key CSR issues were decided. This materiality is obviously of interest to and has a strong impact on stakeholders.

Standards, which are international guidelines foritems placed in the “very high region” by either were judged to be

These issues are positioned as important themes for the Toyoda Gosei Group as well.

CSR (ESG), and sustainable development goals

issues of utmost importance.

Environment（E）(SDGs) for the growth of international society.

● Building Low-Carbon Societies

Very highEfforts toward SDGs
T h r o u g h i t s b u s i n e s s a c t i v i t i e s , t h e Toyo d a
Gosei Group contributes to the achievement of
the sustainable development goals (SDGs) thatinternational society (all United Nations member
nations) are targeting for 2030.

22

Degree of impact on stakeholders

・Reduction of CO2 emissions
・Reductions in greenhouse gases

High● Building Recycling Societies●

Communication withstakeholders

・Reductions in waste
・Reduction of water usage●●

Social contribution
activities● Higher employee
satisfaction
●

●

●
●

Hiring ● Respect for human rights
Contributing to society
through business activities

Environmental preservation andbuilding environmentally-friendly
societies● Environmental Management
・Compliance, management systemcreation・Fostering of environmental awarenessSocial（S）● Personnel
・Development of people with aninternational outlook
・Promotion of work-life balance
・Promotion of diversity● Occupational Health and Safety

Governance（G）● Corporate Governance・T ransparency in corporate governanceand management● Thorough Compliance・Corporate ethics and legal compliance

・Creation of safe and pleasant workplaces
・Sound management● Higher Product Quality● Living with the Local Community

Supply chain management

Healthy labor-management
relations●

Importance in Toyoda Gosei

Creation of new
products based on
advanced technology

Very high23

Toyoda Gosei Group

Vision and Value
Creation Process

Foundation Supporting
Value Creation

Financial Report

Environment〈E〉

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 theearth through the emission of greenhouse gases and depletion resources as a result 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 are

Toshihiro Yokoi

Director, Managing Officer

working to preserve the environment. These activities have earned Toyoda Gosei a highEnvironmental organization
Our medium and long-term policy and key action items are

areas such as reductions in energy use, waste products, anddiscussed and decided in an Environmental Committee chaired

VOC emissions, and preservation of the environment. In thisby the company president. The Environmental Committee

way, environmental preservation and management activities

consists of four subcommittees in the areas of products,

are conducted from an expert perspective.

production, and quality. The subcommittees are further

Environmental
Committee*

Products andTechnology

The Toyoda Gosei Group formulated its 1st Environmental
Action Plan in 1993 based on its environmental policy, andsince that time has been actively confronting environmental
issues.
Recognizing the need to tackle environmental issues
from a long-term perspective, we announced the TG 2050
Environmental Challenge, our long-term environmental targets,in 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 achieve environmental management that meetsthe expectations of society, we have established regional
headquarters in North America, China, and Asia and put inplace a global system for regional management in four global
centers. To achieve the targets in our TG 2050 Environmental
Challenge, we will conduct steady, Group-wide activities witha medium-term view until 2030 in addition to the existing2020 targets.

Production Technology Environment Subcommittee
Production

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, andsuppliers, conducts all business activities with concern
for the environment in cooperation and coordination
with customers, government authorities, and others.

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

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 hexagonal hydrocarbon structure that is the starting
point for polymers. Borrowing from the six sides of the

3. W h i l e s p r e a d i n g
information on these
activities, we listento the opinions ofpeople at all levels ofsociety and work to
improve our activities
wherever we can.

Products andtechnology

TG 2050 Environmental Challenge
Recyclingsociety

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

Low carbon
society

Minimize plant CO2
and utilize
renewable energy

Minimize waste andcreate resource
recycling systems

benzene ring, the TG 2050 Environmental Challenge sets six
challenges to strengthen our environmental efforts with aEnvironmental
preservation andliving with nature

Recyclingsociety
Minimize water
usage and raise
wastewater quality

Environmental
management

24[Promotes and manages development ofenvironmentally-friendly processes (low waste emissions)]

Production Environment Subcommittee[Promotes and manages technical development measures

Foster an environmentally
responsible corporate
culture and employees

Strengthen andexpand environmental
protection andpreservation activities

Liaison Committee for Environmental Communication with Domestic Afﬁliates[Manages, guides, and supports coordinated environmental
efforts by afﬁliates and suppliers in Japan]＊The position of the
Liaison Committee for Environmental Communication with Overseas Afﬁliates
for reduced emissions from production processes]
Environmental[Manages, guides, and supports coordinated environmental
Committee within the Quality
Subcommittee
on
Systemsfor
SOC
Regulations
andQuality
Assurance
Assurance
efforts by afﬁliates in other countries]
organization can beseen in our Corporate[Develops systems for compliance with SOC regulations
Governanceand for quality control]
Organization Chart
Deployment from the Environmental Committee and subcommittees to plants and other operations is done with the establishment of expert(see p. 41)
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 with climate

Risk

Opportunity

Cost increases from carbon tax
and soaring energy prices

Development of lighter weight,
next-generation automotive parts
Cost reductions from efficientenergy 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

Loss of trust in the company
from legal violations and otherenvironmental problems

Raise brand strength byenhancing environmental
activities

change and resource depletion are recognized as
Climatechangean 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

Environmental Policy

long-term view to the year 2050.

Products and Technology Environment Subcommittee[Promotes and manages development ofenvironmentally-friendly products and technologies](Chairperson: Company
president)

continue working actively to create a corporate culture and develop personnel for the

Basic philosophy

information with related companies in Japan and abroad.

Environmental organizational structure

ranking by the press and others, and we will further intensify our efforts. We will also
implementation of sustainable environmental preservation activities.

A liaison committee has also been established to sharebroken down into working groups that promote and manage

Resource
recycling

weather, changing precipitation patterns, droughts
and floods, from a global perspective based on laws,
regulations and trends.

Management

Resource utilization and environmental emissions in business activities
To lessen the amount of energy, material and other resource

kaizen in efforts to improve through business activities.

inputs, and maximum product output, we are utilizing our skills

The input resources we use include environmentally-in product development, process development and workplace

friendly materials and clean energy.

INPUT

OUTPUT

Total material input
Plastic

41,121t
23,570t

Rubber (rubber sheet) 17,551t
Excluding purchased parts,
metal and liquid

Total energy input 3,110,000GJ＊1
Purchased electricity 1,570,000GJCity gas
1,330,000GJ
LPG
70,000GJ

Heavy oil
Kerosene
LNG
Gasoline

Water resource input 1,510,000㎡
Industrial water
840,000㎡

Clean water
270,000㎡
Underground water 400,000㎡

10,000GJ
30,000GJ
100,000GJ
1,000GJ

Business activities

We contribute to preservation of the earth’s
environment through all of our business activities
to leave a greener, richer world to our children

PRTR＊2 substances usage 923t
＊1 Gigajoule (1,000,000,000 joules)＊2 ‌Pollutant Release and Transfer
Register＊3 Sulfur‌Oxide＊4 Nitrogen
‌
Oxide

＊5 ‌Volatile Organic Compounds＊6 ‌Range of target: 4 plants of Haruhi,
Inazawa, Heiwacho and Seto, Kitajima
Technical Center, Miwa TechnicalCenter and Sun-Court Inoguchi

Products
Emitted into the atmosphere
13,400t-CO2
CO2
6 gases
2,000t-CO2
SOx＊3
1t

NOx＊4
Dust
Volume of substances
subject to PRTRVOC＊5 emissions

Waste discharge
Landfill wasteIncinerated wasteIndustrial wasteGeneral waste
16t
For-profit disposal by sale 7,212t
Volume of substances
83t
subject to PRTR

0t
7t
11,633t

Wastewater
Total wastewater 1,070,000㎥
Volume of substances
0.3t
subject to PRTR

92t
0t
110t
361t

10.5t
Nitrogen emissions＊6
Phosphorus emissions＊6 0.9t
＊6
5.3t
COD emissions 

25

Toyoda Gosei Group

Building low-carbon societies

Japan, consolidated

90

49.4

55.1

decrease vs.
FY20122012（Base year）

2014

2015

2016

2017

distribution and other areas.

skills with an eye toward next-generation vehicles together

Reducing CO2 emissions
The Toyoda Gosei Group is reducing CO 2 emissions in
the product stage, production stage, and over the entire

lifecycle to achieve the targets set in its 6th Environmental
Action Plan.

Product development stage: Environmentally-friendly product development
In the product stage, we are making efforts across technicalare lighter in weight for improved fuel efficiency and lower

fields in materials technology, product design, and productionenergy consumption. Examples include interior parts such astechnology to provide environmentally-friendly, next-

instrument panel peripheral parts and functional parts such as

generation automobile parts and develop products that

hoses.

Production stage: Reductions with development of new processes, daily kaizen
In the production stage, we are developing new production

Today, the TG ESCO (expert team that conducts reduction

techniques that minimize energy usage and introducing

activities with genchi-genbutsu ) formed in 2016 is conducting

energy-saving equipment through the Production Engineeringkaizen activities that include the latest technologies andTechnology Environment Subcommittee started in fiscal 2016.

collecting and applying information on best practices fromWe also conduct regular kaizen to thoroughly eliminate waste.

other companies.

Recycling: Reductions in materials procurement, more efficient distribution

26

We have formulated and are expanding green procurement

We are also aggressively pursuing activities to reduce

guidelines for environmentally-friendly materials procurement.

CO2 emissions over the product lifecycle, including efforts toTogether with regular surveys and confirmation of complianceincrease distribution efficiency by improving loading efficiency,

status, we also support companies attempting kaizen .

reviewing transport methods and other efforts.

2012

2014

2015

2016

2017

17.3

Target

15.0

10

50

15％

decrease vs.
FY20120

2012（Base year）

2014

Toyoda Gosei Co., Ltd.
100

50

decrease vs.
FY2012（Base year）

100

77

2015

2016

0
2020 （Fiscal year）

2017

0
2020（Fiscal year）

95

2.0

100

1.21

1.07

Target

8％

1.0

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).

(Range: delivery distribution, intra-process
distribution, procurement distribution)

2014

2015

2016

0
2020 （Fiscal year）

2017＊5 ‌Electricity: 0.3707t-CO2/MWh, class A fuel oil: 2.69577t-CO2/kL, LPG:
3.00397t-CO2/t, town gas: 2.1570t-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
Japan
100

50

0

Overseas

2007

400

200

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

0

6,000

15,000

4,000

Tianjin TG 10,000
Zhangjiagang TGP

2,000
0

Foshan TGP

2007

5,000

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

Reductions in 6 greenhouse gases＊6

Trend in greenhouse gas (6 gases) emissions (CO2 equivalents)

Of the six greenhouse gases, Toyoda Gosei Co., Ltd. uses three

Toyoda Gosei Co., Ltd.

(HFC, PFC, SF6) and is conducting activities to reduce all ofEmissions (10,000t CO2)

utilizing new production techniques and product development

0

Inazawa
Plant

product lifecycle, we are making efforts to increase efficiency in（12.8）

Heiwacho
Plant

presented in the TG 2050 Environmental Challenge, we are

13.5

20

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

17％

Morimachi
Plant

scenario for 2030. To reduce CO2 emissions over the entire

decrease vs.
FY2012

TargetKitajima Technical Centertargets for 2020. We are now formulating our targets andzero by the end of this century. To minimize CO2 emissions as

94

10Haruhi Plant Safety Office

2°C and to achieve greenhouse gas emissions of essentially

15.4

Miyoshi Distribution Center

included in our 6th Environmental Action Plan with activities

20

Sun Court Inoguchi

Agreement, to keep the rise in global temperature to less thanEmissions (10,000t CO2)

with our cultivated manufacturing skills. Plans for execution arePower output (kw)

Toyoda Gosei believes it is imperative, as concluded in the Paris02020（Fiscal year）

17％

Toyoda Gosei Co., Ltd.

Basic philosophy

50

TargetIn addition to lighter weight products that lead to improved vehicle fuel efficiency, we are reducing CO2 emissions throughimproved productivity and more efficient distribution.

Target

12％

30

0

100

Emissions per sales unit (index)

60

Emissions per sales unit (index)＊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.)

Global, consolidated

Cumulative output (kw)

Scope 3.

Employee commutes & business trips 21,000t -CO2
Distribution 41,000t -CO2
Other 31,000t -CO2

CO2 emissions, CO2 emissions per sales unit (index) ＊4
Emissions (10,000t CO2)

reviewed the calculation method and data collection for

Raw materials/capital goods
1,860,000t -CO2

Emissions (10,000t CO2)of raw materials and product use and disposal (Scope 3 ).
To increase precision for a more accurate picture, we(Other indirect emissions)Power output (kw)

＊3

Scope 3 1,953,000t -CO2

China, Thailand, Vietnam, India and other countries.

pushing to expand renewable energy use by installing solar

Emissions per sales unit (index)

emissions in our entire value chain including excavation

Scope 1, 2 551,000t -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.

power generation systems or purchasing green energy inis being systematically introduced. Outside Japan, we are

Emissions per sales unit (index)(Scope 1＊1, Scope 2＊2) in our business activities but also

Financial Report

Renewable energy, including clean solar and wind energy,

Cumulative output (kw)have surveyed and disclosed not only GHG emissions

FY2017 (Global) 2,504,000t -CO2

Bisai Plant

From the perspective of preserving the earth, weFoundation Supporting
Value Creation

Renewable energy

CO2 Emissions by Scope Level

Emissions (10,000t CO2)

Environmental impact in the value chain

Vision and Value
Creation Processthem. By FY2015 we had completed a switch to alternative
gases with a low environmental impact for the shield gas
used in the production of steering wheel cores and othergases. This has resulted in an 81% decrease in greenhousegases since 2012. We will continue these reduction activities
in the future.

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

2.0

Target1.3

62％

decrease vs.
FY2012

1.0

0

2012

（Base year）

2014

2015

2016

0.2

(0.5)

2017

2020（Fiscal year）

27

Toyoda Gosei Group

Vision and Value
Creation Process

Foundation Supporting
Value Creation

Financial Report

Decreased water usage

To achieve the recycling society envisioned in our TG 2050

The frequent water shortages and floods that are occurring

Environmental Challenge, we aim to minimize emissions andin all parts of the world have become a major problem. We arewater use volumes and use resources effectively by reducing

attempting to identify these risks in every country and region

the volume of materials used, designing easily recyclableof the world where we have operations while also striving for

products, and other efforts.

reduced water usage, water recycling, and cleaner wastewater.

Reduction in waste

systematically upgraded to improve our processing ability

activities with genchi-genbutsu ) activities. Water use

so that wastewater is cleaner and the wastewater recycling

has been reduced 12% compared with FY2012 levels byrate is higher. This year we will upgrade the wastewatercorrecting loss and leakage in water use amounts.

treatment facilities at our Morimachi Plant.

Water use and water use per sales unit (index) ＊3
Japan, consolidated

Toyoda Gosei Co., Ltd.

400

100

74

260

217

200

8％

decrease vs.
FY2012

To reduce waste in production processes and achieve our 2020

the number of times reusable containers are used in the fieldtargets, we are taking measures to combat waste at its source

and maintaining cleanliness. Reduction with the use of covers

and recycle. We have also started a waste reduction project

on reusable containers is also being pursued.

（Base year）

Amounts of waste generated and disposed of(results for FY2017: Toyoda Gosei)

Overseas afﬁliates

0

Target

2012

2014

2015

2016

2017

50

0
2020 （Fiscal year）

200

100

88
184
151

100

0

Target8％

decrease vs.
FY20122012（Base year）

2014

2015

2016

2017

50

0
2020（Fiscal year）

Water use per sales unit (index)

Basic philosophy

Wastewater treatment facilities are also being

through TG ESCO (expert team that conducts reduction

Water use (10,000 t)

resources effectively and contribute to a recycling society.

To achieve the 2020 targets, we are working on kaizen

Water use per sales unit (index)

Through reductions in waste and water use volumes and the design of easily recyclable products, we use limited

Water use (10,000 t)

Building recycling societies

strengthen efforts to combat waste at its source. Individual
plants conduct reduction activities with genchi-genbutsu ,Amount ofcompensatedrecycling(payment received)
7,212tAmount of internal reuse 3,305t

while item identification by outside experts is conducted toreduce rubber, plastic and liquid waste.
Study sessions are also held to promote waste reduction at
both domestic and international Group companies.
The packing material used in product transport is being

Amountof waste
11,633t〈100%〉

Amountof landﬁll
waste
0t〈0%〉

reduced to prevent products from being dirtied by increasing

Amount ofpaid recycling(payment made)
11,626t〈99.9%〉

Amount ofincinerated
Numbers in parentheses are thewaste
7t〈0.1%〉 proportion of discarded materials volume

Target10％

10,000decrease vs.
FY2012

20122014（Base year）

2015

2016

2017

50

2020 （Fiscal year）

0

97

20,00012,844

11,633

Target12％

10,0000100

decrease vs.
FY2012

20122014（Base year）

2015

2016

2017

50

2020 （Fiscal year）

0

Waste volume per sales unit (index)

12,940Toyoda Gosei Co., Ltd.
Amount of waste (t)81

14,2230100

Waste volume per sales unit (index)

Amount of waste (t)20,000

150
100

40,00036,69147

20,00050

21,850
0

2013

2014

（Base year）

2015

2016

2017

2020 （Fiscal year）

0

Toyoda Gosei Co., Ltd.

103 ＊2

1,000
Amount used (t)Amount of waste (t)6％decrease vs.
FY2013

Waste volume per sales unit (index)

Target60,000

100

740

858

500

Target8％

decrease vs.
FY20120

2012（Base year）

2014

2015

2016

2017

2020 （Fiscal year）＊1 The amount of waste per sales unit (index) is a figure obtained taking the base year as 100＊2 Increased shipments of spare parts due to disasters continues. The amount of packing material used also increased with the larger size of parts.

28

50

0

Amount used per sales unit (index)

Amount of distribution packing material used/Amount used per sales unit (index)＊1
Overseas afﬁliates

100

73
200

0

205

202

Target8％

decrease vs.
FY20122012（Base year）

2014

2015

2016

2017

50

0
2020 （Fiscal year）＊3 Water use per sales unit (index) is a figure obtained taking FY2012 as 100

Environmental management

Waste volume, waste volume per sales unit (index) ＊1
Japan, consolidated

400

Water use per sales unit (index)

materials technology, and product design departments toWater use (10,000 t)

with coordination among plants and production technology,

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

Basic philosophy
Together with attempts to strengthen selection andand wastewater.

control of chemical substances for the creation of people-

We are also making aggressive efforts to raiseand environment-friendly products and processes, we

environmental awareness and train personnel forfaithfully comply with laws and regulations in eachsustainable environmental activities.

country and customer criteria related to the atmosphere

Control of chemical substances contained in products
To strengthen the management of chemical substances

regulations are revised. To respond to requests fromin our products, we control legally regulated substances

automakers in each country for information on chemicalin each country, substances that are self-regulated

substances in products, we have devised mechanisms

by automakers, and substances covered by our own

and conducted systems for global collective managementcompany regulations. We watch the trends in Europeanof chemical substances that we are currently using in

REACH

＊4

regulations and the EU RoHS Directive andJapan, China, Thailand and Vietnam. We will be steadily

have a system in place to respond rapidly when these

expanding this system to places where it is not yet in use.

＊4 Registration, Evaluation, Authorization and Restriction of Chemicals

29

Toyoda Gosei GroupISO 14001 environmental audit

those being audited in order to raise the independence and

10 locations

Affiliates in Japan

7 locations

Overseas Affiliates

Americas: 10 locations, Asia & Australia:
8 locations, China: 7 locations, Europe/
Africa: 3 locations

objectivity of the audits. Toyoda Gosei Co., Ltd. commissions
external reviews by the Japan Quality Assurance Organization

and biodiversity and contribute to the creation of environmentally-friendly societies.

Toyoda Gosei(JQA) to assess whether our environmental management

Reduced use of substances of concern

measures at both domestic and international affiliates to makemaintenance and management are carried out to ensure

sure that we do not experience similar problems.

not only legal compliance but also that no environmental

We are ensuring the proper disposal of devices containing

problems or complaints occur. Preventive activities such

PCBs. Waste from 848 units had been disposed of by FY2017,as environmental preservation walks are also conducted to

and we are continuing these efforts for the disposal ofEnvironmental education
The content each year emphasizes understanding andpractices based on legal trends, with examples incorporated tocreate specific and understandable teaching materials.

OverseasAfﬁliate Companies

Toyoda Gosei

Japan

Education for new managers

Education for environmental staff

Education for those posted overseas

Education to improve internal auditors’ skills

Education for environmental key persons
Acquisition of environmental education qualiﬁcations
Education for new employees

Overseas

Education to register internal auditors
Education for supervising managers
Education for key environmental facility workers
Education for general workers

Japan, consolidated
100

74

454

378

250

0

Target6％50

decrease vs.
FY20122012（Base year）

2014

2015

2016

0
2020（Fiscal year）

2017

Disposal(amount treated)
219

500

91

427

361

Target

6％

250

0

100

decrease vs.
FY20122012（Base year）

2014

2015

2016

2017

50

0
2020（Fiscal year）＊1 Emissions per sales unit (index) is a figure obtained taking FY2012 as 100

One of our 2020 targets is to conduct similar activities

environmentally-friendly societies. Examples are our plantin water areas and enhance them in coordination with theafforestation project, biotope creation and environmental

Toyota Group, government agencies, NPOs and others.

Mid-range plan for 2020

Plant afforestation

We have drafted a mid-range plan for biodiversity activities andOur plant afforestation project was

are carrying out these activities with the slogan “Working to

begun in 2009, and we have since

save our water, the source of life on earth.”planted about 300,000 trees at 26
locations around the world. The

Efforts to protect the water used at our plants from its source (mountains) to its destination (sea)For the continuation of environmental preservation activities,

Surveys of all employees are conducted each year to

we are attempting to raise environmental awareness amongassess employees’ environmental awareness, and educational

employees with regular events such as Environment Monthactivities are carried out based on the results.

and environmental presentations.

seedlings planted in these activities
are grown in the company.

Protecting rare species in biotopes From FY2017
Plant afforestation●Biotope creation

Toyoda Gosei Czech, s.r.o. / Treeplanting in September 2017.

●

Creation of biotopes in regulating
ponds Heiwacho Plant(scheduled for completion in November)●

Abundant water with abundant forests

Creation of “Toyoda Gosei Forest”(provisional name)
From FY2019●

Eradicating non-native species
From FY2018

Eradication of lance-leaved coreopsis (June)
Environmental education through nature observation●Eco tour (June)●

Biotope creation
We are creating biotopes suited
to each area around the world. To

Candidate sites being selected
Protecting local aquatic life

Environment Month
New environmental symbol (Adopted
after employee entries including domestic
and international affiliate companies)

education.

activities to protect nature and working for the creation ofBreeding endangered creatures

30

Amounttransferred
as waste 83

Toyoda Gosei Co., Ltd.

500

Working to save our water, the source of life on earth

Activities to raise environmental awareness

Environmental forum
Lecturer: Takenori Takahashi, Konica Minolta

Released
Released Released
into waterways into sewers into soil
0.24
0.02
0

VOC emissions/emissions per sales unit (index) ＊1

The Toyoda Gosei Group is conducting aggressive

ISO Education
Afﬁliate Companies

Products
481

Biodiversity

Environmental education system
Level-speciﬁc training

Recycled30

Chemical
substances
handled923

and train personnel for sustainable environmental activities.

Emissions (t)remaining units at an early date.

other companies, inspect similar facilities, and take preventive

Atmosphericemissions 110

improving coating efficiency, and making other efforts to

We are also making aggressive efforts to raise awareness

Regular checks are conducted by expert departments and(Unit: t)and release agents, making painting lines more compact,

substances and volatile organic compounds (VOCs).

Activities to eliminate compliance and environmental violations and complaints

Toyoda Gosei educates employees on environmental problems
including the destruction of nature and environmental
pollution, the impacts on the environment of production
activities, and compliance with environmental regulations.

In production processes, we are switching to water-based paintreduce to the Pollutant Release and Transfer Register (PRTR)

systems are run properly in accordance with ISO14001.

combat risks. In addition, we analyze problems that occur atVolumes and flow of emitted PRTR substances

Emissions per sales unit (index)

audit teams composed of members from business areas outside

Environment Month
Environmental exhibition

Financial Report

Together with efforts for environmental preservation, we are trying to increase recognition of the importance of protecting nature

Emissions (t)certification. Internal environmental audits are carried out by

Production sites subject to environmental management

Emissions per sales unit (index)

acquire ISO 14001 environmental management system

Japan

Foundation Supporting
Value Creation

Other important issues

Toyoda Gosei and its domestic and international affiliates

Toyoda Gosei

Vision and Value
Creation Process

make it easier to secure the space
Fostering organisms in clean
and beautiful seas

Environmental
preservation in tidal ﬂats
From FY2018

Preservation of Fujimae Tidal
Flats (scheduled for October)●and minimize costs, we have beencreating biotopes in regulating pondsin coordination with government
agencies and others.

Rendering (Heiwacho)

Environment Month
Eco tours (observation of living
creatures)

31

Toyoda Gosei Group

Vision and Value
Creation Process

Foundation Supporting
Value Creation

Financial Report

S o c i a l〈 S 〉

Developing personnel who can thrive in achanging environment, and contributing tosociety through manufacturing
As a good corporate citizen, the Toyoda Gosei Group aims to contribute to developmentof the economy and society through business activities rooted in each country andcommunity and social contribution activities. To build a foundation for those endeavors,
we are developing professionals who can act globally and promoting diversity and workstyle reforms. We respect the individuality of each person while increasing our collective

Level-specific education system
International

GLDP

Division General
Manager

GED

Department General
Manager, Division
Deputy General Manager

Global Leadership Development Program

Global Executive Development

GES

Global Executive Seminar

MMT

Middle Management Training

strength through teamwork to achieve a vibrant corporate culture with meaningful

Hiromasa Zaitsu
Corporate Officer

work. We will continue to conduct research and development in anticipation of future

TWI-JI、JM、JRchanges, raise the level of our manufacturing technology, strengthen our supply chain

Overseas Training for Supervisor

and make constant kaizen efforts to satisfy our customers.

Domestic
Office, technical workers
Skilled workers

New Division General Manager training
New Department Deputy
General Manager training
New Group Manager
training

Group Manager,
Section Manager

New Manager training

Assistant Manager,
Supervisor

New Division AssistantManager training

New Supervisor
training

Midlevel employees

Midlevel employee
training

New Team Leader training
Midlevel Leader training
programSecond-year /Third-year training

Third-year training

New employees

New employee training

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

Framework for personnel developmentthat supports growth
In the Toyoda Gosei Group, our personnel management
system features aspiration interviews and visualization of
mid- and long-term career design for each employee, as wellas rotation of young employees so that they experience awide range of work. We are also enhancing our level-specificand specialty training to give employees opportunities toacquire needed abilities and skills.

New Section Manager
training

Three key areas of personnel development
Development ofpeople withan international
outlook
who can perform
on the global
stage

Development ofnext generation
leaders
who can headregional
operations

Development ofprofessionals
who combine
high levels of
expertise witha broad outlook

Personnel development cycle
Aspiration interview
Career design

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

Employees consider
their own career plan
based on career visions
for each department

Appointment /rotation
Experience of otherareas, appointment topositions from ayoung age

Personal
growthYoung 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 throughon-the-job training (OJT)
Skills improvement through in-housetraining by rank and role (OFF-JT)

Training manufacturing personnel
With the aim of strengthening our production floors, themaintenance, fabrication

source of our competitiveness as a manufacturing company,of two-legged walking

we are enhancing technical education for employees ofrobots, and disassembl-

each level working at manufacturing sites and in eaching and reassembling

field of expertise. Technical education spanning four

automobiles, they recei-

months was provided to 51 skilled workers who joined theved practical training on acompany in April 2018. Following training in safety basics

manufacturing shop floor

on the production floor (danger simulations) and basic

for two months.

manufacturing education including practical training in die

New employee training

Work-style reforms
From FY2017 we began efforts to make work more efficientwith the use of IT and reviews of meeting structures withThe keys of workstyle reforms

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 work-stylereforms. To deal with changes with a sense of speed and raise
the quality of work, we are communicating more closely thanever before in the workplace, eliminating waste, and adopting
a working style with a varied pace.

Changing ourway of thinking

Correction of long
working hours andlabor compliance

Increased work
efﬁciency

Work culture reforms
Creation of a workplaceculture where people arefree to exchange all opinions

Two-way
communication

Active bottom-up
proposals

Enhanced training programs, invigorated
personnel development
A broad range of efforts based on individual career visions
are underway, including measures and study programs inJapan to develop people who can perform globally and nextgeneration leaders, and personnel development programs
for all global employees.

32

Conference on work-style reform and better communication

Regular meetings of work-style reform leaders33

Toyoda Gosei Group

Examples of work-style reform activities
Perspective

Concentration
on essential
work

Item

Efforts

11:00 to 12:00 each day is set as “concentration time” (asa rule, NO meetings, NO telephoning, NO instruction.
Workers are notified with music played at 11:00 a.m.)

Establishment of aconcentration time

Increased
work
efficiency●Arrangements, meetings
forbidden from going
beyond the fixed time

Training in workplace management and work
process kaizen
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

advancement.

open and fair environment.

Support for
the training andactive roles of
women

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

Encouraging people totake annual vacation

times with a sense of security, there is also support for careerwith creating an environment where people can work for longThree key priority measures for activity●Workplace managementkaizenWork-stylewith varied
pace

Educational poster

Going beyond the fixed time every Wednesday
and Friday is forbidden as a rule●

employees and strengthen personal connections. Together

employee, who works with energy and creates results in an
Activity
promotion
character●Work kaizen using IT
tools

Reforming
the attitudes andbehaviors ofsuperiors

Creatinga workplacecultureRoundtable discussion of work styles and workplace culture

Target values for 2020●

＊1 Robotic process automation

To encourage interactions among work
areas, glassed-in meeting spaces are set up
in the center of the floor.

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)

Workplaces that welcome people with disabilities

Respect for human rights
Respect for individual human rights and privacy both incharacter and individuality of each person is respected andand out of work are set in employee behavioral guidelinesthat are free of discriminatory behavior, sexual harassmentin the Toyoda Gosei Guidelines for Business Ethics. We are

and power harassment.

striving to create healthy and pleasant workplaces where the

Human rights education
In both new employee education and new manager training,

consideration of the rights of others. Personnel are sent

we provide education on human rights. Participants learn

to external training to learn in greater depth about rights

the reality of discrimination and deepen their understanding

problems. In these and other ways we are trying to trainof the importance of performing their daily work withpeople with a superior sense of human rights.

Toyoda Gosei Co., Ltd. actively employs persons withvoice guidance, and Carry Dun emergency stair evacuation

disabilities. The Committee for Employment of People withchairs based on periodic interviews to understand current

Disabilities plays a central role in hiring, job assignments,

situations. Work that people with disabilities can perform

education, establishment of stable positions, and awareness.

is identified, and they are systematically hired and placed.

We place particular emphasis on helping persons withIn FY2017, 125 people with disabilities were hired (as ofdisabilities establish stable positions and improving the work

January 1, 2018). This was a hiring rate of 2.41%, exceeding

environment with the installation of Braille blocks, elevators,

our target (legally mandated employment rate ≥2.0%).
Changes in employment rate for people
with disabilities (Toyoda Gosei Co., Ltd.)
(%)

3

2.39%
2.13%

Hiring of diverse personnel
nationals, women, people with disabilities, and people whoare rehired after retirement. Together with efforts to vitalize
the company, we strive to hire and train employees in a fair

Encouraging the active roles of women
A special organization was established in 2010 that has been
active in the three key areas of (1) support for the training

and equal manner with a respect for diversity.

and active roles of women, (2) reforming the attitudes

Toyoda Gosei Co., Ltd. employee composition (FY2017)

culture. Our aim is to create a situation in which people

No. of employees

5,797

Female677

and behaviors of superiors, and (3) creating a workplace

Total

6,474

can be active and grow in a fair environment regardless ofsex. A working group of volunteers in key positions in thecompany was started in 2018 and has begun working to raise
the management level and review the work styles of people

Average age

42.5

39.1

42.1

in key positions with the themes of promoting the activeroles of diverse employees and the work-life balance of the

Average length of
employment

34

18.6

15.5

2.08%

2.41%
2.2%

2.12%

2

Toyoda Gosei hires a wide range of people, including foreign

Male

Financial Report

The ability to play an active role and grow as an important●

Review of meeting
structure

Foundation Supporting
Value Creation

What we want for each person●

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

Vision and Value
Creation Process

18.3

members themselves and their subordinates. “Tea meetings”
are also held to listen to the troubles and thoughts of female

Legally mandated rate 2.0%
Communication with sign language in the workplace

1

2013

2014

2015

2016

2017

2018 （Fiscal year）

Creation of an environment for stable work after retirement
We have established an environment so that employees canwork with assurance after retirement in a post-retirement
rehiring system. Many people can make use of their highlevels of skill and experience after they are rehired. A system

Trend in cumulative number of re-employed retirees（Persons）

400

of reduced working days and working hours supports

300

working styles for a good work-life balance.

200

292

329

347

348

2014

2015

2016

373

100
0

2013

2017（Fiscal year）

*0.06

35

Toyoda Gosei Group

Work-life balance
We will provide education for the creation of workplace

employee can select a working style with consideration ofenvironments where people can use these systems withoutwork-life balance, supporting employees so that they canhesitation, while continuing to enhance our support andwork with a sense of security and motivation. Support topolicies.

balance childcare and work includes systems for shorter
working hours and holiday day-care, plus family-career
seminars. For these efforts we have been certified by the
Ministry of Health, Labor and Welfare as a “Childcare
Support Corporation.” For nursing care support we are

Financial Report

Toyoda Gosei Co., Ltd. provides regular mental healthTogether with various types of educational activity to

education for workers of each level, with emphasis on

maintain and promote health, health classes are held for

managers and supervisors to encourage management

employees at milestone ages with the aim of preventing

with a view to mental health in the workplace and smooth

lifestyle-related diseases. Support is also given to smokers

communication. A bimonthly mental health bulletin is also

who want to quit.

counselors to maintain and promote mental health.

new systems for reduced days orHoliday day-care

reduced working hours so that people

between medical care and work.

Physical health activities

occupational health nurses, medical nurses and externalwith our systems. We have establishedcontinuing to work, and for a balance

Mental health activities

each place of business, counseling is provided by in-house

knowledge and familiarize employees

can undergo treatment for disease while

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

distributed to all workers to improve self-care abilities. In

also undertaking activities to increase

These activities and other efforts to consider employee healthmanagement from the perspective of company operation were

“Kurumin” NextGeneration Nurturing
Support certification
mark

recognized in February 2018 with certification as an “Outstanding
Health Management Corporation—White 500” by the Ministryof Economy, Trade and Industry and the Nippon Kenko Kaigi.＊2

Childcare leave

Care leave

Reduced working
hours

60

7

58 ＊1

＊1 Childcare 54 /nursing care 2 /medical treatment 2

Division General
Manager
Family-Career Seminar (support for childcare-work balance)

Department General Manager,
Division Deputy General Manager

Group Manager,
Section Manager

Manager’s mental health (follow-up) education

for worker safety. We are trying to maintain these rules andPersonnel and Safe Workplace programs, with the president

raise compliance by posting guards.

overseeing all efforts as the company’s general health andAssistant Manager,
Supervisor

Section leaders

General employees

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

Toyoda Gosei Co., Ltd. aims for zero accidents through Safe

safety manager.

＊2 Nippon Kenko Kaigi: An organization
formed to conduct effective activities in
conjunction with private organizations andthe full support of government agencies, inorder to increase healthy lifespan andproper medical care for each person in
Japan as the population rapidly ages andthere are fewer children.

Health education system

Aiming for “Zero Accidents”

Assistant manager / supervisor
mental health education

Mental health department deputy
general manager education

In Safe Workplace activities we aim to improve the safetyof high risk equipment where serious accidents (STOP 7)

The FY2017 Safe Personnel program focused on holding

can occur. Risk assessments incorporating a reverse KY (kiken

handrails on stairs and stopping and checking in bothyochi , or hazard prediction) approach are conducted anddirections at stop points on walkways within plants as keys

measures are implemented with a clear priority order.

Uniform global quality assurance
Toyoda Gosei ensures quality in all business activities, fromdevelopment to production, based on our basic quality

Trends in rate of work accidents (rate of injuries resulting in lost work time)policy. Every one of our plants has obtained certification

No. of casualties in
occupational accidents
Rate of injuries resulting in＝×1 million
lost work time
Total work hours

and IATF16949 (JQA-AU124) international standards for

(%)

1.5

Fundamental principles of TQM

in the ISO 9001 (JQA-QM7318/QMA11826/ QMA12841)
Customer
firstquality management systems. Each plant also sets its own
quality control goals for production. These goals are based

Whole manufacturingindustry

1.02

on the principles of Total Quality Management, or TQM—
activities designed to enhance the quality of products, work,

1.0

TQM

and management, and increase the dynamism of individuals
Transportation equipment industry

0.5
Sentinel activity

2013

2014

2015

0.43
0.064

Toyoda Gosei Co., Ltd.

036Foundation Supporting
Value Creation

Maintaining and improving mental and physical health

Toyoda Gosei Co., Ltd. is adopting a system wherein each

FY2017

Vision and Value
Creation Process

2016

2017（Years）

and organizations, through constant improvement and theparticipation of all based on the “Customer First” principle. In

Constant
improvement

Participationby alladdition, all Group companies use our Quality System Global
Standards, which incorporate quality improvement with rules
and know-how to ensure quality.

37

Toyoda Gosei Group

Monitoring and responding to manufacturing processes and market quality

Vision and Value
Creation Process

Foundation Supporting
Value Creation

Financial Report

Collaboration with suppliers

Defect-free process completion is carried out in production

do not produce or pass on any defects and developing workers

Our partnerships with suppliers are very important to us

where we share production information and informationand other processes for parts involved in the basic automotive

with a high sensitivity to safety and to avoiding mistakes. We also

for smooth business operations. Every April, Toyoda Gosei

on quality improvements, compliance, safety, earthquake

functions of running, turning, and stopping, as these parts arehave fulltime auditors who audit and improve processes at allCo., Ltd. holds a procurement policy briefing with aboutmeasures, confidentiality, chemical substance control anddirectly linked to safety. We want the Toyoda Gosei name to

production sites globally.

200 suppliers of products, machining processes, materials,

human resources development.

A system is in place so that whenever a quality problem

facilities, and molds. We inform suppliers of upcoming issues

purpose, we advance quality assurance declaration activities at all

occurs in the market, we can quickly investigate the causes

and efforts, including our business environment and direction,

production locations. This means that all employees make efforts

based on information from automakers and implement

and share our procurement policy for the year with regard toequal quality in the minds of customers worldwide. For thisto improve safety and the people in charge of all manufacturing

prevention measures. When it is difficult to pinpoint the cause

safety, quality, delivery, price, technology, global expansion

processes improve quality through the development of peopleof a problem and develop solutions internally, we work with theand CSR. We also give awards to show our appreciation toand processes. When a mechanism that can ensure the target

quality departments of automakers to take precise measures tosuppliers for achievements in their fields, while encouraging

quality has been completed and is in place, the manager makes

prevent recurrence based on inspections with test vehicles andall suppliers to continue making progress. Every quarter, wean “assurance declaration” to the president or site manager.

other means. In this way we prevent such quality defects fromhold a procurement liaison meeting with about 100 suppliers,

The president or site manager then conducts a site inspection.

occurring in the next products.

Through “jidoka ,” we improve quality by creating processes that

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

Basic procurement policy
1. Optimum global procurement

Procurement policy briefing, China

Contributing to local communities

Supply chain management

In 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.

Procurement policy briefing, Japan

2. Mutual growth basedon mutual trust

3. Thorough environmental
protection and legal compliance

We want to grow together
with our business partners
through dealings based ona long-term vision. To thisend we work to build strong
relationships of trust throughclose communication with
suppliers.

We do our utmost to ensure environmental
protection and legal compliance in all ourdevelopment, design, and production activities.
In procurement we follow the principles ofpurchasing items with minimal environmental
impact and conducting our activities in ways that
reduce environmental impacts.
		 We also exercise extreme care for full legal
compliance and confidentiality in relation to our
procurement activities.

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

Social Welfare

Environmental Preservation

Introduction of fund-raising meals incafeterias

Wheelchair repair in welfare
institutions

Youth Development

Environmental education forelementary school students

A total of more than 300,000
trees planted domestically andinternationally

Community Safety

Support for suppliers
We support strong supplier structures with “genchi-genbutsu ”

design. Through sectional committee activities we share(go-and-see activities), and work for their growth. In addition

information necessary for quality improvements with suppliers.

to standardized work and defect prevention to avoid serious

We also conduct checks and risk assessment for compliancequality problems, and lowering of cost prices for higher

with Japan’s Industrial Safety and Health Act to help support

competitiveness, we involve suppliers in mold and productthe creation of safe workplaces and prevent fires and disasters.
Support for Boys and Girls Invention
Club

Green procurement
We do our utmost for environmentally-friendly procurement

ISO 14001 certification and reduction of energy consumption

based on our Green Procurement Guidelines (4 thand waste. We comply with increasingly strict chemical

Edition), which consist of three components: establishingsubstance regulations around the world and monitor theenvironmental management systems; improving regulatorychemicals contained in items procured from suppliers. We also

compliance and environmental performance; and managing

coordinate with suppliers in complying with European ELV

harmful substances. To reduce environmental impacts,(end-of-life vehicle) and REACH (Registration, Evaluation,

we strive to enhance suppliers’ internal organizations andAuthorization and Restriction of Chemicals) regulations, andsystems and raise the level of their production activities.

in the management of volatile organic compounds.

Positive results have been achieved, such as acquisition of

38

Sports clinics

Anti-crime patrols

Traffic safety patrols

Sports Promotion

Trefuerza volleyball teamBlue falcons handball team

Scorpions basketball teamSince winning its first league
championship in 2015, Toyoda
Gosei’s Trefuerza volleyball teamhas advanced to the finals forthree consecutive years. It and thecompany’s handball and basketballteams are all active in domestic
Japanese leagues. These teams
foster a feeling of unity between
employees and the community andenrich everyone’s lives.

39

Toyoda Gosei Group

Vision and Value
Creation Process

Foundation Supporting
Value Creation

Financial Report

Governance〈G〉

Building and operating transparent
management systems for thoroughGroup-wide compliance
The entire Toyoda Gosei Group is striving to enhance corporate governance so that we
can continue as a company of integrity that is trusted by society. To build and maintain
fair and transparent corporate governance systems, we are increasing the effectivenessof the monitoring and auditing of corporate management by external directors andauditors, while also installing internal control systems company-wide to ensure theInternal controls for the Toyoda Gosei GroupTo cultivate a healthy internal control environment atmanagement, we receive regular business reports and set up

Toyoda Gosei and its subsidiaries, all Group companies sharesystems to confirm the propriety and legality of subsidiaries’

established Corporate Principles. The Toyoda Gosei Groupbusinesses through advance approval reports. We also send

Charter for Business Ethics, a shared guideline for compliance,

non-executive directors and auditors to key subsidiaries in

has also been instituted and systems are being spread toa system to monitor and act as a check on their businesssubsidiaries. While respecting the independence of subsidiary

execution.

Corporate governance systempropriety and efficiency of work. Through Group-wide compliance activities we are

Shareholders’ Meeting

pursuing thorough legal compliance and business ethics.

Toru Koyama

Director, Senior Managing Officer

Appointment / dismissal

We are identifying risks with the potential to have a huge impact on our operations,Appointment / dismissal

and implementing risk management activities to prevent future problems.

Audit

Board of Directors

Corporate governance

We view the enhancement and strengthening of corporate

systems.

governance with the aim of ensuring sound and efficient

Toyoda Gosei supports the Corporate Governance Codecorporate management to be crucial in achieving sustainable

formulated by the Financial Services Agency and the Tokyo

growth. We are building and maintaining organizational

Stock Exchange, and has voluntarily implemented various

systems that can respond precisely to environmental changes,

policies based on the letter and spirit of those principles andand implementing and fair and transparent management

rules to enhance our corporate governance.

Corporate governance system
Toyoda Gosei has adopted an audit and supervisory board

matters, monthly management meetings are held. Functional

system and set up the shareholders’ meeting, Board ofconferences and committee meetings relevant to key areas

Directors, Board of Auditors, and accounting auditors as

such as technology, costs, and personnel are also held as

statutory entities. We have also installed internal auditors andneeded for good management decisions.

other internal control systems.

The Board of Auditors consists of five auditors and

The Board of Directors consists of nine directors, andholds regular meetings. Auditors also attend important

holds regular monthly meetings (extraordinary meetings held

meetings such as Board of Directors’ meetings and audit eachas needed), where matters prescribed by law and important

department and subsidiary, through which they fulfill theirmatters related to corporate management are reported,function of auditing corporate management.

discussed, and decided.
A system of corporate officers is used to speed up decisionmaking and business execution. For important businessAccounting auditors are external auditors who combine
auditing functions with ensuring an independent and fair
auditing system.

Internal control systems

40

Audit & Supervisory Board Dept.

Management committee

Basic philosophy

Toyoda Gosei has formulated a basic policy for setting internalin line with this policy, we are striving to build and operatecontrols, based on the provisions of the Companies Act. By

systems to ensure business propriety. The establishment andestablishing internal control systems for things including

operational status of internal controls is examined each year at

discussion of important matters, checks of business execution

a Board of Directors’ meeting, and continuous efforts are madestatus, internal audits, compliance, and risk management

to improve and strengthen these controls.

Supervision /auditing

Various functional conferences

Committees

Board of Auditors

Audit

・Corporate activity ethics committee
・Environmental committee
・Export management committee
・Central health and safety committee
Audit

Various functions / Business divisions and subsidiaries

External auditors（Financial and internal control audits）

Internal auditing dept.
(Internal control audits)

Internal audits, auditors’ audits, accounting audits
An Audit Division consisting of eight people has been set up

established by the Audit & Supervisory Board in conducting

for internal audits. With the aims of both achieving businesssurveys and interviews in the company and affiliates. Theyobjectives and preventing dishonest practices or falsification,

actively participate in Board of Directors meetings, management

internal audits are conducted across the entire business frommeetings, and other important meetings and committees,

the perspective of legality and rationality based on an internal

listen to reports on the business from directors and others, viewauditing plan approved by corporate managers at the beginning

financial statements and other important documents, visit andof each term. This includes audits of the internal control design

audit offices and subsidiaries, ensure legality and propriety, andand operation status in each department.
The results of internal audits are reported to corporate
managers via officers in charge of internal audits, andaudit the execution of business by directors from the perspectivesof protecting assets and rights and preventing loss. A special
section has been established to assist the auditors’ audits.

recommendations for improvements in the audited departments

The certified public accountants who perform the accounting

are given based on the audit results. The effectiveness of internal

audits of Toyoda Gosei are Eiichi Yamanaka and Tomohiro

audits is increased by confirming the improvement plans andNishimura of the firm PricewaterhouseCoopers Aarata LLC.

results. Audit plans are prepared through the exchange ofThey are assisted in the accounting audits of Toyoda Gosei by 11

opinions with Audit & Supervisory Board members, while atcertified public accountants, 5 accountants who have passed thethe same time reports on the status of internal audits and theiraccountant examination, and 6 others.

results are made to Audit & Supervisory Board members as
required to share information.

Audit & Supervisory Board members, internal auditing
department, and accounting auditors regularly meet with regard

To increase the effectiveness of auditors’ audits, criteria

to their respective auditing systems, auditing policy, auditing

for auditors’ audits have been enacted that establish the basic

plans, implementation status, and audit results. They also contact

related items. Audits are then conducted based on the pertinenteach other as needed to exchange ideas and share information,

criteria. Each auditor follows the auditing policy and audit planand cooperate in performing efficient and effective audits.

41

Toyoda Gosei Group

Outside directors, audit & supervisory board members

On executive compensation

Toyoda Gosei appointed two outside directors, Sojiro Tsuchiya

respective auditing plans, implementation status, and auditing

Director compensation consists of base compensation andand Kimio Yamaka, at its annual stockholders’ meeting

results, and contact them as needed to exchange opinions andbonuses. The base compensation is within a range with anon June 15, 2018. Two outside audit & supervisory board

share information for efficient and effective auditing.

upper limit decided at the general shareholders’ meeting, andmembers, Takeshi Uchiyamada and Masami Hadama, were also
appointed. Together with current outside audit & supervisory

determined with consideration of the duties of each position.
Election of outside directors and outside audit & supervisory board members

board member Hideomi Miyake, the total number of outside
audit & supervisory board members that have been appointed

Appointment

Name

Independent
director

is now three.
When electing outside directors, emphasis is placed

SojiroTsuchiyaon extensive experience in corporate management andother areas, plus deep insight. This is in addition to outside
requirements from the Companies Act. The outside audit &○Outsidedirectors
Kimio
Yamakasupervisory board members elected are people with deep
experience and knowledge in their field of specialty and○management. They stand as outsiders with little direct vested
interest and a certain distance from 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 status of
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 withaccounting auditors and the internal auditing department, which

Outsideaudit &
supervisoryboard
members

Reason for appointment

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 andenergy fields in the managementof Toyoda Gosei

TakeshiUchiyamada

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

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

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

includes an internal control auditing function, with regard to their

Officer class

Directors

467

342

125

10

(excluding outside
audit & supervisoryboard members)

74

74

-

3

External officers

58

58

-

5

(excluding outside
directors)

Audit & supervisoryboard members＊ Bonuses are the provision of allowance in the given fiscal year.

multiple perspectives and the results are reported to theBoard of Directors.

board members, including external ones, on the effectivenessThe results of the assessment for FY2017 showed that theof the Board of Directors. The roles and responsibilities of theBoard displayed a sufficient level of effectiveness. Meaningful

Board of Directors, the level of discussions, opportunities toopinions were expressed in the assessment process, andimprove effectiveness and other matters are assessed from

efforts to improve the effectiveness will continue.

Communication with stockholders and investors
For constructive dialogue with shareholders and investors, we

insider information is controlled and information control ishave established a system for conducting such diaglogue inthoroughly implemented.

to institutional investors, and other means. Based on theopinions and desires of shareholders and investors obtained,

Main IR activities
Targeted persons

In the period before earnings reports, dialogue withshareholders and investors is restricted during a silent period
Outside Director(Independent)

unfortunately betrayed the expectations of society.
Manufacturing consists of the consolidation of many functions, including technical development, sales, procurement,
production, and quality control. If activities in each of these areas are carried out in good faith, work will proceed
comprehensively and products with quality and cost that satisfy customers can be delivered in a timely manner.
The leading role in manufacturing is played by the production plant. I have actively visited Toyoda Gosei’s plants andthe plants of Group companies in Japan and other countries. There I talk with the plant personnel as much as possible, andcommunicate to them the things I notice from the perspective of an outsider so that they can carry out their essential roles.
I would like to support the Toyoda Gosei Group in continuing to contribute to society through suggestions with aand information is thoroughly controlled in the company.
If insider information emerges in the company, the said

IR activities

Domestic
institutional
investors,
securities analysts

Individual discussions,financial briefings,
plant tours, telephone
conferences

Overseas
institutional
investors

Individual discussions,participation in IR events

further opportunities for dialogue are being enhanced.

Sojiro Tsuchiya

Total amount by type of
Total executive
Number ofcompensation (Millions of yen)compensation
subject officers
Base(Millions of yen)(People)Bonusescompensation

annual interviews of all directors and audit & supervisory

the officer in charge; direct visits by people in charge of IR

the decision-making at those meetings is transparent.

●●

Individual
shareholders andinvestors●●●

Briefings for individual
investors

Issuance of the “Toyoda
Gosei Report”
Dissemination offinancial and IR
information on website

Plant tours after annual
shareholders’ meeting
Issuance of “Report on
Business Results”

Compliance
Basic philosophy
Toyoda Gosei’s management philosophy states that, “we will

Toyoda Gosei Group worldwide, and Group companies

build systems for thorough legal compliance and corporate

in Japan and other countries incorporate this Charter into

ethics, and undertake business activities with integrity.” Wetheir own behavioral guidelines. Toyoda Gosei Co., Ltd. has

strive for thorough compliance in all areas.

established the Toyoda Gosei Behavioral Ethics Guidelines,

The Toyoda Gosei Group Charter for Business Ethics sets
forth shared values and behavioral standards for the entire

42

The total compensation for each officer class, the total by each type ofcompensation, and the number of officers receiving the compensation

At Toyoda Gosei, the Board of Directors Office conducts

plant tours for institutional investors with explanations bydone my best to give objective advice utilizing my past experience and knowledge so that

Financial Report

Ensuring the effectiveness of the Board of Directors

explanations by the company president or relevant officer;

decisions quickly and flexibly to achieve sustainable growth. At directors’ meetings, I havedetailed focus on manufacturing.

upper limit decided at the general shareholders’ meeting.

This dialogue is carried out through financial results

environment has changed greatly. During this time the company has needed to makehave been revealed in recent years has shaken trust in Japanese manufacturing, and has

supervisory board members and within a range with anbriefings or small meetings for institutional investors withSince I was appointed as an outside director in June 2015, Toyoda Gosei’s business

contributing to society through manufacturing. The string of corporate scandals thatmembers is determined in consultation with the audit &necessary information.

I would like to see Toyoda Gosei continue contributing
to society though manufacturingfound one thing to be crucial in corporate management of a manufacturing company—

The base compensation of audit & supervisory board

a coordinated manner, planning opportunities and sharing

Message from outside director

I have worked in a manufacturing company similar to Toyoda Gosei, and haveat the general shareholders’ meeting.

Foundation Supporting
Value Creation

Officer compensation

The amount of bonuses is calculated with consideration ofbusiness performance, and determined through a resolution

Vision and Value
Creation Process

which it expects every employee to follow, and has worked tofamiliarize all employees with these guidelines.

43Toyoda Gosei Group

Compliance system

ComplianceToyoda Gosei has established a Corporate Ethics Committee withthe company president serving as chairman and all company
officers as members. Together with compliance advocates in eachdivision, the committee works for thorough compliance with a

Domestic
Afﬁliates

unified approach between management and the workplace.
In Japan, regular compliance liaison conferences are heldwith Group companies. Group companies in other countries
have established compliance committees, appointed complianceadvocates, or set up other compliance systems suited to thecircumstances in their region and company. Compliance activities

All company executives

Support forcompliancesystemManagement
Philosophy

Toyoda Gosei Group
Charter for Business Ethics
Toyoda Gosei Guidelines for
Business Ethics

Corporate Ethics
Committee

Legal affairs /compliance workshops

Overseas
Affiliates

Compliance advocates fromeach division

Ensuring
complianceare carried out in coordination with Toyoda Gosei.

Company-wide Compliance
Advocates’ Meeting
Internal and external

Compliance and sexual
harassment consultation
services

Specific efforts
Compliance consultation officeEfforts to prevent violations of competition laws

To identify and resolve compliance problems at an early

Guidelines have been prepared for Japan and key regions where

stage, Toyoda Gosei has established internal and externalGroup companies are located (USA, EU, China, Thailand, India,

compliance consultation offices and an internal harassment

Brazil, others), and efforts are undertaken globally to prevent

consultation office.

anti-competitive acts at Toyoda Gosei Group companies.

Group companies in Japan have their own consultation

Specific behavioral guidelines that Toyoda Gosei expects

offices, in addition to which they have established a joint

employees to follow in various business activities, especiallyexternal compliance consultation office together with Toyoda

sales activities, are embodied in the Codes of Conduct for

Gosei. Group companies in other countries have established

Antitrust Law Compliance in the company’s internal regulations,external or internal consultation offices.

and thorough compliance is expected of employees.

Compliance activity checks and kaizen
Toyoda Gosei conducts “compliance entrenchment
questionnaires” of all employees each year to confirm compliancetransparency and whether there are signs of violations. Kaizen
activities are then conducted based on the results.

Foundation Supporting
Value Creation

Financial Report

Crisis Management Project in anticipation of large-scale earthquake disasters

Corporate activities
Support forcompliancesystemVision and Value
Creation Process

Continuing education activities are also conducted throughspecial training in competition law and regular compliancetraining for each level within the company.
Anti-bribery efforts

Japan is a land of earthquakes, and we have put into place ahave also established specific procedures for the recovery ofcrisis management system for the event of a massive earthquake

affected buildings, facilities, and processes and for alternative

based on the principles of human life first, community

production in a production recovery system. Recovery training

support, and early recovery. Specifically, we are carrying out

for design drawings and other data is also carried out so thata Crisis Management Project to strengthen our ability to deal

product development can be continued even after disasters.

with disasters, focusing on the two areas of developing and

In addition, workshops to strengthen crisis management notenhancing first responses and clarifying response procedures

only in our own companies but also at affiliates and suppliers

for quick restoration of production. Since 2013 we haveare conducted regularly. Assessments using “anti-earthquake

conducted resilience training more than 80 times for directors

measures implementation status check sheets,” clarificationand members of anti-disaster departments, based on theof weak points with graphs, introduction of responses taken at

idea that in addition to infrastructure and system measures,

Toyoda Gosei and other companies, and cooperative preparation

improving the skills of response personnel is essential. Weof business continuation plans are carried out.
Disaster response

Efforts to date
Classification

Disaster outbreak - First response

Measures

Recovery

Permanent

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

Warning &Monitoring Team●

Disaster occurs●

Emergency
Task Force

Emergency
earthquake alert●●First Response
Task ForceIntroduction of site and building safety decisions
Maintenance of supply chain information
Teleconference system for multiple locations using tablet computers
SystemEarthquake bulletin and employee safety information system training
measures
Employee safety follow-up system incorporating arrival and departure times at company andbusiness trip data
Preparation of a business continuation plan

Advance Team●

(investigative
team)

●
●

Life Support
Task Force

Production
Restoration
Task Force●●District
Task Force●Instructions
Reports

Toyoda Gosei has formulated Global Anti-Bribery Guidelines asStrengthening information security measures and raising awarenessTo strengthen the control of confidential information,

departments, and confidentiality education activities areannual checks of the compliance status of each division

conducted based on information system security operatingbased on company confidentiality management regulations

standards and a confidential information management

are conducted together with onsite audits. Self-inspections

manual. Security control education is also conducted for new

are also done at Group companies in Japan and affiliates in

employees.

A voluntary check sheet is used for Group companies

a common guide to conducting transparent and sound businessin Japan and other countries to check their basic policy

activities globally, and is doing its utmost to prevent bribery

and systems for compliance, the status of compliance withand corruption at all Toyoda Gosei

important laws including competition laws and bribery andGroup companies. Continuing

corruption laws, and risks in key areas including humaneducation activities are conductedresources, finance, sales, procurement, safety and quality.

for employees through training for

Kaizen activities are then conducted based on the results.

each level and risk.

other countries. Confidentiality officers are assigned in all
Compliance training

Enhanced measures
Classification

Risk management

Preventionof leaks fromnegligence

Basic philosophy

44

With the aims of preventing risks that can have huge impacts

business management, such as implementing measures as

on management and to minimize damage in the event

needed based on assessments of operational status.

that adverse events do occur, we are identifying risk in

Risk Management and Response Guidelines have alsoeach function in cross-departmental meetings and making

been established. These Guidelines summarize basic mattersdecisions on how to respond. For each type of risk in safety,

related to risks and show the behaviors to adopt to prevent

quality, and other areas, the department in charge has

potential risks and to respond appropriately and quickly in theestablished regulations and key points and conducts proper

event that problems occur.

Preventionof malicious
unauthorized
leaks

Measures

Hard

●

Soft

●

Hard

●

●

●

●

Soft

●
●

Educational activities(ethics)●●

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

●

●
●
●

●
●

Restrictions on writing onto external storage media
System use records
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

45

Toyoda Gosei Group

Vision and Value
Creation Process

Foundation Supporting
Value Creation

Financial ReportManagement Members （As of June 15, 2018）
Managing Officers

Yasushi Miyamoto
Takashi Ishikawa
Ryo Onishi
Naoki Miyazaki

Masakazu Hashimoto

Tomonobu Yamada

Toru Koyama

Kimio Yamaka

Katsumi Tanabe

Hitoshi Mizutani

1980
2008

1980
2002
2005

1981
2007

1982
2005

1980

1981

1982
2009

President

2013
2014
2015

Joined Toyota Motor Company
Managing Officer, Toyota Motor
Corp.
Senior Managing Officer, Toyota
Motor Corp.
Executive Vice President,
Toyoda Gosei
Appointed President, Toyoda
Gosei (current)

Executive Vice President

2012
2014
2016

2017
2018

Joined Toyota Motor Company
Joined Toyoda Gosei
General Manager forTechnology, Safety Systems
Business Unit, Toyoda Gosei
Corporate Officer, Toyoda Gosei
Managing Officer, Toyoda Gosei
Senior Managing Officer,
Toyoda Gosei; Chief, Research& Development Headquarters
Toyoda Gosei (current)
Director, Toyoda Gosei
Appointed Executive
VicePresident, Toyoda Gosei(current)

Director, Senior Managing Officer

2010
2012
2014

2016

2017

Joined Toyoda Gosei
General Manager, First Sales
Division, Toyoda Gosei
Director, Toyoda Gosei
Corporate Officer, Toyoda Gosei
Managing Officer, Toyoda
Gosei; Chief, Sales
Headquarters, Toyoda Gosei(current)
Appointed Director, Toyoda
Gosei (current); appointed
President, Toyoda Gosei(Shanghai) Co., Ltd. (current)
Appointed Senior Managing
Officer (current), Toyoda Gosei;
oversees General Industry
Products Div., Toyoda Gosei(current)

Director, Senior Managing Officer

2012

2016

2018

Joined Toyoda Gosei
General Manager, Development
Division, Safety Systems
Business Unit, Toyoda Gosei
Corporate Officer, Toyoda Gosei;
President, Toyoda Gosei North
America Corp.
In charge of Corporate Planning
Division, Toyoda Gosei(current);
Appointed Director, Toyoda
Gosei (current); Chief,
Purchasing Headquarters,
Toyoda Gosei (current)
Appointed Senior Managing
Officer, Toyoda Gosei (current)

Outside Director (Independent)

2007
2009

2016

Joined Japan Development
Bank
Deputy Director-General,
Development Bank of Japan
Appointed Director of theEnergy Strategy Institute Co.,
Ltd. (current)
Appointed Director, Toyoda
Gosei (current)

Audit & Supervisory Board
Member (full-time)

2006

2012
2013
2017

Joined Toyota Motor Sales Co.,
Ltd.
General Manager, European
Business Dept., Toyota Motor
Corp.
Project Senior Manager, TMEJapan, Toyota Motor Corp.
Auditor, Toyoda Gosei;
Corporate Officer, Toyoda Gosei
Appointed Full-Time Audit &Supervisory Board Member,
Toyoda Gosei (current)

Yoshiyuki Fujita

Audit & Supervisory Board
Member (full-time)

2010
2015

2016

Joined Toyoda Gosei
Deputy General Manager,
Finance & Accounting Division,
Toyoda Gosei
Executive Vice President, TG
Missouri Corp.
General Manager, Finance &Accounting Division, Toyoda
Gosei;
Deputy General Manager,
Finance & Accounting Division,
Toyoda Gosei
Appointed Full-Time Audit &Supervisory Board Member,
Toyoda Gosei (current)

Corporate Officers

Kazuaki Maeda
Junichiro Kako
Hiroki Fukui
Masahiko Ito
Todd Huber
Hiroyasu Hirayama
Hiromasa Zaitsu
Yutaka Ogasawara
Tadashi Yamamoto
Makoto Hasegawa

Hiroshi Yasuda

Director, Senior Managing Officer
1982
2006

2010
2012
2016

2017
2018

46

Joined Toyoda Gosei
General Manager, Planning
Division, Safety Systems
Business Unit, Toyoda Gosei
President, Toyoda Gosei Czech,
s.r.o.
Corporate Officer, Toyoda Gosei
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.
Oversees Quality Assurance
Headquarters, Toyoda Gosei
Appointed Director, Senior
Managing Officer, Toyoda Gosei(current)

Takeshi Uchiyamada

Director, Managing Officer

Sojiro Tsuchiya

Outside Director (Independent)

1985
2012

1975
2002
2004
2007

1969
1998
2001

Toshihiro Yokoi

Masaki Oka

1982
2008

Director, Managing Officer

2011

2012
2015
2017

2018

Joined Toyota Motor Company
Executive Vice President, PT
Toyota Motor Manufacturing
Indonesia
Project Senior Manager, Human
Resources Development
Division, Toyota Motor Corp.
Project General Manager,
Corporate Planning Division,
Toyoda Gosei
Corporate Officer, Toyoda Gosei
Appointed Managing Officer(current), Toyoda Gosei
Appointed Director, Toyoda
Gosei (current); Chief, Corporate
Management Headquarters,
Toyoda Gosei (current)
Chief, General Administrationand Human Resources
Headquarters, Toyoda Gosei(current); in charge of Safety& Health Promotion Division,
Toyoda Gosei (current); in
charge of Environment Division,
Toyoda Gosei (current)

2014

2015

2016

2017

2018

Joined Toyota Motor Corp.
Project Senior Manager, Finance& Accounting Division, Toyota
Motor Corp.
General Manager, Related
Business Department, Toyota
Motor Corp.
Adviser, Toyoda Gosei;
Corporate Officer, Toyoda Gosei;
General Manager, Finance &Accounting Division, Toyoda
Gosei; in charge of IT Planning
Division, Toyoda Gosei
Deputy Chief, Finance &Accounting Headquarters,
Toyoda Gosei; in charge ofAudit Division, Toyoda Gosei(current)
Chief, Finance & Accounting
Headquarters, Toyoda Gosei(current)
Appointed Director, Managing
Officer, Toyoda Gosei (current);
Chief, IT Headquarters, Toyoda
Gosei (current)

2011
2013
2015

Joined Nippondenso Co., Ltd.
Director, Denso Corp.
Managing Officer, Denso Corp.
Senior Managing Director,
Denso Corp.
Executive Vice President, Denso
Corp.
Advising Executive Engineer,
Denso Corp.
Appointed Director, Toyoda
Gosei (current); Adviser, Denso
Corp.

Outside Audit & Supervisory
Board Member

2003
2005
2012
2013

2018

Joined Toyota Motor Company
Director, Toyota Motor Corp.
Managing Director, Toyota
Motor Corp.
Senior Managing Director,
Toyota Motor Corp.
Executive Vice President, Toyota
Motor Corp.
Vice Chairman of the Board of
Directors, Toyota Motor Corp.
Appointed Chairman of theBoard of Directors, Toyota
Motor Corp. (current)
Appointed Audit & Supervisory
Board Member, Toyoda Gosei(current)

Misao Fukuda

Masami Hadama

Hideomi Miyake

Outside Audit & Supervisory
Board Member (Independent)

Katsumi Saito

1993
2006

1968

Mitsuhiro Nawashiro

Outside Audit & Supervisory
Board Member (Independent)

2007
2008
2012
2014

Appointed public prosecutor
Public Prosecutor, Special
Investigation Dept., Tokyo
District Public Prosecutors
OfficeRegistered lawyer, partner at
TMI Associates (current)
Professor, Sophia University
Graduate School of Law
Representative, TMI Partners
Appointed Audit & Supervisory
Board Member, Toyoda Gosei(current)

1993
1999
2003
2005
2011
2015

2016

Joined Toyoda Iron Works Co.,Ltd.
Director, Toyoda Iron Works Co.,Ltd.
Managing Director, Toyoda Iron
Works Co., Ltd.
Senior Managing Director,
Toyoda Iron Works Co., Ltd.
President, Toyoda Iron WorksCo., Ltd.
Chairman, Toyoda Iron WorksCo., Ltd.
Appointed Audit & Supervisory
Board Member, Toyoda Gosei(current)
Appointed Senior Adviser,
Toyoda Iron Works Co., Ltd.
(current)47

Toyoda Gosei Group

Vision and Value
Creation Process

Foundation Supporting
Value Creation

Financial Report

Financial Report

Consolidated 11-Year Financial Summary(Millions of yen：rounded down to the nearest million yen)

Operating results

Financial position

FY2007

FY2008FY2009FY2010FY2011FY2012FY2013

FY2014FY2015FY2016FY2017￥662,497￥546,380￥495,002￥516,982￥504,518￥599,615￥689,477￥727,846￥781,886￥755,601￥806,938

Operating profit

52,125

15,833

26,202

29,952

20,41536,706

43,79841,60342,82440,675

41,136

Ordinary profit

50,541

12,155

26,57427,54920,287

36,77745,847

43,792

41,49039,007

43,200

Profit before income taxes

48,2039,125

23,92627,192

19,07636,571

46,101

39,851

36,71031,28835,775

Profit attributable to owners of parent*1

30,802

3,951

14,255

17,116

8,971

21,42926,214

21,155

20,255

16,233

21,175

203,863

145,891

198,537

183,293229,238

244,798

279,281291,246

281,212305,273

328,524

Cash and deposits

53,66243,00067,78356,58670,71579,07392,36485,28378,38897,553

104,309

Non-current assets

272,878

245,866

235,807

233,268

225,555

244,846

262,596

316,926

306,160

315,425

333,819

228,019

204,515

194,457

191,261

183,864

196,163

210,214250,557

241,408

245,666

259,537

Total assets

476,741

391,757

434,344416,562454,794

489,644541,877

608,172

587,373

620,699

662,388

Current liabilities

154,806

101,314130,857

123,379

149,968

157,748

168,136

180,795

162,592

170,574

189,075

19,845

14,557

19,35520,20023,30035,97839,06941,84821,07331,762

43,722

67,97378,74073,572

59,10767,45759,751

73,462

88,902

96,937

110,663

119,403

Bonds payable

10,00010,00010,00010,000

0

0

0

0

0

0

10,000Long-term loans payable

27,402

41,83934,245

19,34834,39723,32931,13842,92944,691

57,26154,458

Total liabilities

222,779

180,055

204,429

182,487

217,426

217,500

241,598

269,697259,530

281,237

308,479

Shareholders’ equity

214,867

209,766

221,724233,365

238,400

255,201

275,840

289,321

301,756

311,127

324,890(Reference) Interest-bearing debt

57,24866,39763,60049,54857,69859,30770,207

84,77765,76589,023

108,181

Cash flows from operating activities

75,22947,843

68,19962,586

51,11252,45155,44851,283

77,76560,40160,848Cash flows from investing activities（55,291）（55,945）（36,574）（52,579）（37,027）（40,989）（45,680）（62,432）（56,261）（82,131）（39,201）

Cash flows from financing activities（20,742）

5,604（7,426）（18,785）2,224（6,128）

（732）

（238）

（24,736）

14,794

6,541

4.6

0.7

2.9

3.3

1.8

3.6

3.8

2.9

2.6

2.1

2.6

Total asset turnover (times)

1.42

1.26

1.20

1.22

1.16

1.27

1.34

1.27

1.31

1.25

1.26

Equity ratio (％)

48.3

50.3

49.2

52.2

48.6

51.7

51.6

51.6

51.7

50.7

49.6

Return on equity (ROE) (%)

14.2

1.8

6.9

7.9

4.1

9.0

9.8

7.1

6.6

5.2

6.6

Capital investment

53,12858,20934,326

46,98337,62339,09743,08564,73354,49855,21864,816

Depreciation and amortization

40,30941,25843,00744,481

41,964

38,63338,74339,353

44,46240,902

44,037

R&D expenses

25,99024,837

26,066

25,61725,93627,27929,17029,57928,40927,164

27,864

Number of employees at year-end (consolidated)

27,036

25,792

26,08426,964

29,10830,19031,672

34,75435,90336,67938,234

46.00

36.00

36.00

36.00

36.00

44.00

56.00

56.00

56.00

53.00

56.00

Earnings per share (EPS)

238.61

30.55

110.19132.2769.33

165.63202.54163.44156.49125.42163.60

Dividend payout ratio (%)

19.28

117.84

32.67

27.22

51.93

26.57

27.65

34.26

35.79

42.26

34.23

Net sales

Current assets

Property, plant and equipment

Short-term loans payable*2
Non-current liabilities

Cash flows

Key performanceindicators

Per share
information (yen)Return on sales (％)

Annual dividends*1 “Net income” for FY2010 or before*2 Including current portion of long-term loans payable and redemption of bonds within 1 year48

49

Toyoda Gosei Group

Vision and Value
Creation Process

Foundation Supporting
Value Creation

Financial Report

Financial Review
Operating results

ization of next-generation “e-Rubber” as one aspect of ourability to expand production of plastic fuel filler pipes in

Net sales in the optoelectronic business totaled 14.5 billion

Summary

for applications such as artificial muscle, with a next-generationyen (down 21.6% year on year), due to decreased sales for LED

We will continue to look at capital requirements with a

In fiscal 2017, the global economy overall stayed on a recovery

power source (actuator) that moves with electricity, as well as

products for backlights. Segment loss was 844.0 million yen (uplong-term view for capital investment and financing globally,

track while being exposed to political and policy risks in thefor commercialization in tactile or pressure sensors that takefrom a segment loss of 5.5 billion yen in the previous fiscal year),including responses to globalization of markets and enhancing

United States and major European countries and geopoliticaladvantage of the softness of rubber. Measures and efforts are

due to decreased fixed costs and other factors.

our business in growing markets.

risks in the Middle East, the situation in North Korea and otherbeing executed in rapid succession to move steadily towardmatters. There was concern of a slowdown in the Chinese

commercialization, including strengthening the organization

Sales by region

the end of the fiscal year under review, including loans

economy, but it remained firm, supported by governmentthat will work toward commercialization, concluding tie-ups with

To expand sales and build a revenue base, we have made aand bonds payable, was 108.1 billion yen. The outstanding

economic measures and external demand. In developed countries

venture companies, and actively displaying e-Rubber in trade

powerful push to grow our airbag business, one of the drivers

balance of cash and deposits was 104.3 billion yen.

employment continued to improve while capital investment also

shows and other venues. We have also formulated a medium-of Toyoda Gosei’s growth. Specifically, to meet the needs of theincreased, sustaining the economic recovery. Economic growthand long-term management plan for fiscal 2025 that sets our

growing market in Asia, particularly India, we established a new

in developing countries also accelerated, centered on Russia andcourse for sustainable growth in a rapidly changing environment.

plant in Bawal, Haryana, which is in northern India, and thenInvestment, cash and debt

Brazil, favored by rising prices for natural resources.

Prior to its announcement in May 2018, we announced ourbegan working to establish another new plant in the western

Capital investment

64.8

55.2

medium-term business outlook for fiscal 2020 as a milestone

state of Gujarat. We are preparing to meet growing demand

Cash and deposits

104.3

97.5

Interest-bearing debt

108.1

89

In the Japanese economy both consumer spending andNorth America.

The outstanding balance of interest-bearing debt atcapital investment remained firm amid turbulent domestic andin May 2017 and explained our medium-term management

by strengthening our local business structure and raising costforeign politics, in a stable expansion.

objectives and short-term priority measures.

competitiveness. We have also strengthened our development(Billions of yen)

End of FY2017 End of FY2016

The automobile industry sold more vehicles than in the

For the fiscal year under review, net sales increased to 806.9

structure in developed countries to meet the needs for airbag

Cash flows

previous fiscal year thanks to the introduction of new vehicles,

billion yen (up 6.8% year on year), based on increased sales indiversification and an increasing number of airbags in cars due

The outstanding balance of cash and cash equivalents

although the number of units sold in Japan decreased due toour automotive parts business and the effects of exchange rate

to stricter safety regulations. Through a capital tie-up with a(excluding time deposits with maturities greater than threeproblems from falsified fuel economy tests and inspections. In

fluctuations.

business partner that produces inflators—a key component

months) on a consolidated basis at the end of the fiscal yearof airbags—and other activities, we enhanced our production

under review increased 28.0 billion yen over the previous

capability to meet this growing demand.

consolidated fiscal year, to 97.9 billion yen. This was mainly dueother countries, while the number of units sold in the United

Despite a worsening product mix, increased fixed costs andStates, which had been a favorable market, decreased, a recovery

other factors, operating profit increased to 41.1 billion yen (upwas seen in Asia and Europe. Worldwide, increasing demand was

1.1% year on year), ordinary profit grew to 43.2 billion yen (upWe are also enhancing our global business structure

to cash inflow of 60.8 billion yen from operating activities, net

maintained.

10.7% year on year) and profit attributable to owners of parent

to build other revenue bases. In Europe, which has been adecrease in time deposits of 21.4 billion yen and fundraising ofrose to 21.1 billion yen (up 30.4%).

challenging market for us, we are reviewing the division of

34.1 billion yen from long-term loans and issuance of bonds,

roles in our three locations and have begun optimizing our

despite outlays of 60.9 billion yen for the acquisition of non-In the LED industry, prices continued to decline for lighting
and backlights due to price competition and the emergence ofcompeting technologies such as organic electroluminescence.
Under these circumstances, the Toyoda Gosei Group
continued its aim of being a truly global supplier of choice thatdelivers satisfaction to customers worldwide, endeavoring toensure safety and raise quality globally with its corporate policy(Billions of yen)

Consolidated operating results

FY2017FY2016

production and cost structures. In South America, we havecurrent assets. Cash flows and related factors during the fiscal

Net sales

806.9

755.6

strengthened our production capabilities for interior andyear under review were as follows.

Operating profit

41.1

40.6

exterior parts by making Pecval Industria Ltda. in Brazil, a● Cash flows from operating activities

company in which we previously had only an equity interest,

Operating activities provided net cash of 60.8 billion yen, an

a wholly owned subsidiary.

increase of 400 million yen compared to 60.4 billion yen in theProfit attributableto owners of parent

21.1

16.2

of first creating a corporate culture and developing mechanisms(Billions of yen)previous fiscal year. This was due to increases in profit before

Sales by region

FY2017FY2016In the automotive parts business, net sales increased to 792.3

Japan

381.3

361.9

non-fund items, despite an increase in income taxes paid.

To follow the path of sustainable growth as a global supplier,billion yen (up 7.5% year on year), based on expanded sales to

Americas

241.2

230.1

● Cash flows from investing activities

we have also prioritized efforts to develop technologies andmainly Toyota Motor Corporation and Japanese customers not

Asia & Australia

197.6

179.0

Investing activities used net cash of 39.2 billion yen, a decrease of

expand sales in ways that correspond to environmental changes

in the Toyota Group, as well as the exchange rate effects from

Europe & Africa

47.9

45.4

42.9 billion yen compared to 82.1 billion yen in the previous fiscal

and future needs, and to build a solid revenue base that supports

a weaker yen. Meanwhile, segment profit was 41.9 billion yen

year. This was due mainly to a net decrease in time deposits.

sustainable growth.

(down 9.2% year on year), due to a worsening product mix and● Cash flows from financing activities

so that major accidents and serious quality problems will neverOperating results by segment

occur.

In the automotive parts business, we have introduced a series

increased fixed costs, despite the effects of increased sales andof attractive new products to the market based on our technicaldevelopment. These products include steering wheels with grip
sensors that automatically detect the status of the driver’s gripon the steering wheel and provide feedback to the autonomous
driving system, large radiator grilles that are lighter in weight with
an improved design and a dynamic shape, and glass runs witha stylish new configuration that improve quietness and provide
comfortable interior spaces. This has resulted in expanded sales.
We have accelerated movement toward the commercial-

50

Groupwide rationalization efforts.

technical development for the future. e-Rubber is promising(Billions of yen)

Sales by segment

FY2017FY2016

Automotive parts

792.3

737.0

Weatherstrips

131.9

134.4

Functional Components

125.3

117.6

Interiors and Exteriors

309.5

273.1

Safety Systems

225.5

211.8

14.5

18.5

Optoelectronic

Financial position

income taxes and adjustment of depreciation, profit and loss ofFinancing activities provided net cash of 6.5 billion yen, adecrease of 8.2 billion yen compared to 14.7 billion yen in

Capital requirements and financial policies

the previous fiscal year. This was due mainly to an increase in

The Toyoda Gosei Group had made capital investment of

repayments of loans.

64.8 billion yen in the fiscal year under review. Our planned
capital investment in the next consolidated fiscal year will
be mainly to enhance production capacity for inflators madein-house and plastic fuel filler pipes in Japan, and in othercountries to strengthen production in India and enhance
airbag production capacity in Vietnam, and to enhance our(Billions of yen)

Cash flows

FY2017

Cash flows from operating activities

60.8

60.4

Cash flows from investing activities（39.2）（82.1）Cash flows from financing activities

6.5

14.7

FY201651

Toyoda Gosei Group

Consolidated Balance Sheets￥104,309￥ 97,553￥ 80,989

Notes and accounts receivable – trade141,447

131,567

Short-term loans payable

18,595Merchandise and finished goods

12,76911,941

Current portion of long-term loans payable

Work in process

10,03910,266

Raw materials and supplies

28,09930,764

Deferred tax assets

5,153

4,341

Other

26,882

19,034Current assets

Total current assets

End of FY2017

End of FY2016（ 177）

328,524（ 195）

305,273

34,298

Packing and transportation expenses

5,033

4,778

Income taxes payable

3,704

3,522

Provisions for product warranties

630

951

Provision for directors’ bonuses

194

181

Provision for product warranties

858

Deposits received from employees
Other

168

21,581

19,477

Depreciation

3,716

3,551

189,075

170,574

Other

29,70926,957

Total selling, general andadministrative expenses

61,09956,979Loss on antitrust law

Operating profit

41,136

40,675

Loss on disposal of inventories

Machinery, equipment and vehicles, net

91,73784,569Total non-current liabilities

Tools, furniture and fixtures

172,804

160,837

Total liabilities（ 136,495）（ 130,592）

36,30830,244

Land

27,646

26,595Construction in progress

19,47425,580Total property, plant and equipment

259,537

245,666

Goodwill

37

217

Shareholders’ equity

Software

1,363

1,439

Capital stock

Other

1,154

667

2,555

2,324

Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets

3,400
（ 69）

4,650
（ 69）

71,72667,434

333,819

315,425

Deferred assets

16,52014,191

119,403110,663￥308,479￥281,237

Non-operating income
Interest income
Dividend income
Share of profit of entities accounted
for using equity methods

End of FY2016￥ 28,027￥ 28,027

Capital surplus

29,15029,314Retained earnings

268,930

255,001

Treasury shares（ 1,218）（ 1,216）

Total shareholders’ equity

324,890311,127

6,302

495

－
7,718

Profit before income taxes

35,77531,288

Income taxes ‒ current

12,79011,119

Income taxes ‒ deferred（ 1,654）

1,155

Total income taxes

11,136

12,274

Profit24,63819,013

Profit attributable tonon-controlling interests

3,463

2,780

￥21,175￥16,233

FY2017FY2016￥21,182￥17,776

4,113

2,613

156

985

－

Other

1,940

2,564

7,398

4,891

2,141

1,523

981

589

Loss on liquidation of subsidiaries

Profit attributable to owners ofparentConsolidated Statements of Comprehensive Income(Millions of yen)

Profit

FY2017FY2016￥24,638￥19,013

1,121

1,270

‌
Foreigncurrency translation
adjustment（ 1,977）（ 1,450）‌Remeasurementsof defined
benefit plans, net of tax

1,313

1,481

Foreign‌currency translation
adjustment（ 1,723）865

Remeasurements‌of defined
benefit plans（ 6,794）（ 8,250）

Total accumulated othercomprehensive income

3,747

3,752

Share
‌
of other comprehensive
income of entities accounted
for using equity method

199

75

657

1,376

￥25,295￥20,39045－

Non-controlling interests

25,271

24,582

Total other comprehensive income

Total deferred assets

45－

Total net assets

353,909339,461

Comprehensive income￥662,388￥620,699￥662,388￥620,699

Comprehensive income attributable to:‌Owners of parent‌Valuationdifference on
available-for-sale securities

12,265

Total liabilities and net assets

3,886
7,651

Valuation‌difference on
available-for-sale securities

11,136

1,416

Total extraordinary losses

Other comprehensive income

Accumulated othercomprehensive income

-

－

753

Non-operating expenses

End of FY2017

3,269

650

1,247

Foreign exchange losses

Extraordinary losses

685

765

Interest expenses

Total extraordinary income

1,495
1,044

Total non-operating income

Extraordinary income

Impairment loss

Gains on sales of non-current assets
Profit upon recognition ofindemnification claims

Bond issuance cost

Total assets－

184（ 288,430）

6,275

－

226

Provisions for directors’ bonuses（ 289,538）

5,057

125

4,655

Accumulated depreciation

4,435

－

4,745

32,943

5,625

101

Gain on bargain purchase

1,391

34,101

Deferred tax assets

Gain on step acquisitions

1,315

Net defined benefit liability

Net defined benefit asset

39,0071,020

373,000

51,5206,559

43,20019,179381,276

58,333

5,333

Ordinary profit

20,508

Machinery, equipment and vehicles■ NET ASSETS

Total non-operating expenses

Salaries and allowances

6,266

Other

Other

Retirement benefit expenses

57,261

Investment securities

1,778

33,2794,322

Investments and other assets

1,519

Accrued expenses

54,458

Total intangible assets

432

Selling, general and administrative expenses

Deferred tax liabilities

Intangible assets

691

13,66978,676

Tools, furniture and fixtures, net

1,069

‌
Loss
on sales of non-current
assets25,126

84,370

Accumulated depreciation－

97,655102,235

Long-term loans payable

Buildings and structures, net

657,946

704,703（ 107,081）（ 111,872）

1,165

Gross profit－

Accumulated depreciation－

Compensation expenses

18,092

10,000FY2016

Recall cost￥ 75,656

Bonds payable

185,758

FY2017￥755,601

Non-current liabilities

196,243

Buildings and structures

FY2016￥806,938

Notes and accounts payable – trade

Total current liabilities

Property, plant and equipment

FY2017

Cost of sales

Net sales

Current liabilities

Non-current assets

52■ LIABILITIESEnd of FY2016

Allowance for doubtful accounts

Financial Report(Millions of yen)

End of FY2017

Cash and deposits

Foundation Supporting
Value Creation

Consolidated Statements of Income(Millions of yen)

■ ASSETS

Vision and Value
Creation Process

Non-controlling interests53

Toyoda Gosei Group

Consolidated Statement of Changes in Equity FY2017

FY2017

Capitalstock

CapitalsurplusRetainedearnings

TreasurysharesTotal shareholders’equity￥28,027￥29,314￥255,001￥（1,216）￥311,127

Changes of items during period
Dividends of surplus（ 7,249）

Change in scope of consolidation
Profit‌
attributable to‌owners of parent（ 7,249）

2

2

21,175

21,175Purchase of treasury shares（ 1）（ 163）（ 1）（ 163）Net changes in items other thanshareholders’ equity
Total changes of items during period－

Balance at end of current period￥28,027（ 163）￥29,150

13,928（ 1）

13,763￥268,930￥（1,218）￥324,890

Accumulated other comprehensive income
Valuation difference Foreign currency Remeasurements Total accumulated
on available-for-saletranslationof defined benefit other comprehensive
securities
adjustment
plansincomeBalance at beginning of current period￥11,136￥ 865￥（8,250）￥3,752

Non-controllinginterests

Total net
assets￥24,582￥339,461

Changes of items during period
Dividends of surplus（ 7,249）

Change in scope of consolidation

2

Profit‌
attributable to‌owners of parent

21,175Purchase of treasury shares（ 1）

Change‌in ownership interest ofparent due to transactions with
non-controlling interests

54

Financial Report(Millions of yen)

Shareholders’ equity

Change‌in ownership interest ofparent due to transactions with
non-controlling interests

Foundation Supporting
Value Creation

Consolidated Statements of Cash Flows(Millions of yen)

Balance at beginning of current period

Vision and Value
Creation Process（ 163）Net changes in items other thanshareholders’ equity

1,128（ 2,589）

1,455

（ 4）

689

684

Total changes of items during period

1,128（ 2,589）

1,455

（ 4）

689

14,447

Balance at end of current period￥12,265￥（1,723）￥（6,794）￥25,271￥353,909￥3,747

Cash flows from operating activities
Profit before income taxes
Depreciation
Loss (gain) on step acquisitions
Gain on bargain purchase
Impairment loss
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for product warranties
Increase (decrease) in net defined benefit liability
Decrease (increase) in net defined benefit asset
Interest and dividend income
Interest expenses
Foreign exchange losses (gains)Share of loss (profit) of entities accounted for using equity method
Loss (gain) on sales and valuation of investment securities
Loss (gain) on sales and retirement of property, plant and equipment
Decrease (increase) in notes and accounts receivables – trade
Decrease (increase) in inventories
Decrease (increase) in other current assets
Increase (decrease) in notes and accounts payables – trade
Increase (decrease) in other current liabilities
Other, net
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes paid
Net cash provided by operating activities
Cash flows from investing activities
Purchases of investment securities
Proceeds from sales and redemption of investment securities
Purchase of investments in capital of subsidiaries
resulting in change in scope of consolidation
Purchase of property, plant and equipment and intangible assets
Proceeds from sales of property, plant and equipment
Net decrease (increase) in time deposits
Other, net
Net cash used in investing activities
Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Proceeds from issuance of bonds
Proceeds from share issuance to non-controlling shareholders
Purchase of treasury shares
Cash dividends paid
Dividends paid to non-controlling interests
Payments from changes in ownership interests in subsidiaries
that do not result in change in scope of consolidation
Repayments to non-controlling shareholders
Other, net
Net cash provided by financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Increase (decrease) in cash and cash equivalents resulting
from change of scope of consolidation
Cash and cash equivalents at end of period

FY201644,037（ 101）（ 125）
3,886
99
（ 19）
（ 152）
1,366
862（ 2,180）
2,141（ 1,080）（ 1,044）2（ 556）（ 9,509）2,113（ 5,255）
4,202（ 1,249）
235
73,4482,502（ 2,130）（ 12,971）
60,848￥31,288
40,902
－
－
6,302
92
18
（ 100）
1,405
433（ 1,404）
1,523
2,441
（ 765）（ 112）
276（ 7,665）（ 1,078）477（ 4,627）（ 1,120）（ 209）
68,0781,550（ 1,583）（ 7,644）
60,401（ 2,089）（ 92）￥35,775410（ 494）（ 60,914）

2,449
21,40630（ 39,201）198
24,187（ 13,943）
10,000163（ 1）（ 7,248）（ 2,235）138－（ 55,004）

365（ 27,311）（ 226）（ 82,131）（ 188）
27,031（ 3,267）－174（ 1）（ 6,860）（ 2,060）（ 3,866）－（ 649）
（ 61）

（ 33）

6,541
（ 65）
28,122
69,918（ 49）￥97,991－

14,794（ 1,350）（ 8,284）

78,203－￥69,91855

Toyoda Gosei Group

Vision and Value
Creation Process

Foundation Supporting
Value Creation

Financial ReportCompany and Investor Information （As of March 31, 2018）
Location of
headquarters

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

Distribution for each type of shareholder
Treasury stock at cost
0.43％

Date of establishment June 15, 1949

Individuals, others
6.09％¥28 billion

CapitalCommon stock

Authorized 200,000,000 shares
Issued 129,457,110 shares（Excluding 552,901 shares oftreasury stock）

Foreigncorporations
17.75％

Shareholder nameToyota Motor Corporation

Stock exchange Tokyo Stock Exchange andlistings
Nagoya Stock Exchange

The Master Trust Bank of Japan, Ltd. (Trust Account)
Japan Trustee Services Bank, Ltd.(Trust Account)
Sumitomo Mitsui Banking Corporation
STATE STREET BANK AND TRUST COMPANY

Shareholder registry Tokyo Stock Exchange andadministrator and special Nagoya Stock Exchange
account management
institution

NORTHERN TRUST CO. (AVFC) RE HSD00
Nippon Life Insurance Company
The Dai-ichi Life Insurance Company, Ltd.
Japan Trustee Services Bank, Ltd. (Trust Account 9 )Japan Trustee Services Bank, Ltd. (Trust Account 5 )7282

Interiors and Exteriors, Functional Components

Financial institutions
25.52％TG Fluid Systems USA Corporation

Functional Components

USD 10 million 100（TGNA100%）

TG Automotive Sealing Kentucky, LLC

Weatherstrips, Safety Systems

USD 33 million 100（TGNA100%）---

Financial instruments
business
1.13％

TGR Technical Center, LLC

Evaluation of safety system products

USD 13 million

60（TGNA60%）

TRAM

Toyoda Gosei Texas, LLC

Interiors and Exteriors

USD 22 million 100（TGNA100%）---

Domestic business
entities
49.08％

Toyoda Gosei BrownsvilleTexas, LLC

North American logistics company

USD 3 million 100（TGNA100%）---

Toyoda Gosei Holdings Inc.

WTG, TG Minto holding company

CAD 65 million---

Waterville TG Inc.

Weatherstrips

CAD 30 million 100（TGH100%）---TG Minto Corporation

Interiors and Exteriors

CAD 27 million 100（TGH100%）---TAPEX Mexicana S.A. DE C.V.

Safety Systems

MXN 201 million 100（TGNA100%）---

Meteor Sealing Systems, LLC

Weatherstrips

USD 8 million 100（TGM100%）---

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.

Weatherstrips

USD 7.7 million

45（TGM45%）---

Weatherstrips

MXN 778 million 100（TGNA100%）---

Mexican personnel agency

MXN 1 million 100（TGNA100%）---

MXN 19 million 100（TGNA100%）---

Major shareholders

Number of shareholders 10,285

Securities code

TG Kentucky, LLC

EquityBusiness
partnerstake (%)
USD 54 million 100（TGNA100%）---Company name

Number ofshares held
(unit : 1,000 shares)

55,459
6,600
5,797
5,049
1,881
1,763
1,592
1,535
1,465
1,388

Investment
ratio
（％）

42.83
5.09
4.47
3.90
1.45
1.36
1.23
1.18
1.13
1.07

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

Toyoda Gosei Group Companies（As of April 1, 2018）
Company nameProducts/business sector

CapitalEquitystake (%)

Business
partnerJapan

Functional Components

Toyoda Gosei Irapuato Mexico, S.A. de C.V. Interiors and Exteriors, Functional Components
GDBR Industria e Comercio de Componentes
Weatherstrips, Interiors and Exteriors, Safety Systems
Quimicos e de Borracha Ltda.
Pecval Industria Ltda.
Interiors and Exteriors

BRL 142.1 million

100

---

THB 824 million

100

---

Toyoda Gosei Rubber (Thailand) Co., Ltd.

Thai regional headquarters
Safety Systems, Interiors and Exteriors, Functional
Components
Weatherstrips, Functional Components

THB 600 million70（TGAS70%）

P.T. Toyoda Gosei Safety Systems Indonesia

Safety Systems, Functional Components

USD 8.5 million

80

AOP

P.T. TG INOAC Indonesia

Sales of weatherstrip products

USD 200,000

51

INOAC

Toyoda Gosei Haiphong Co., Ltd.

Safety Systems

USD 54 million

95

Toyota Tsusho

Toyoda Gosei South India Pvt. Ltd.

Safety Systems, Interiors and Exteriors

INR 304 million

95

Toyota Tsusho

Toyoda Gosei Minda India Pvt. Ltd.

Safety Systems, Weatherstrips, Functional Components

INR 4.4 billion

91.8

Uno Minda

Minda TG Rubber Pvt. Ltd.

Functional Components

INR 505 million

49

Weatherstrips, Functional Components

TWD 149 million

45

Safety Systems, Interiors and Exteriors

TWD 200 million

75

TWD 23 million

51

USD 2 million

100

RMB 200 million

90.1

USD 7.9 million

100

Uno Minda
Hongyu I&D.
othersHongyu I&D.
othersEpistar Corp.,
Twin Hill--Toyota Tsusho,
others---Asia
Toyoda Gosei Asia Co., Ltd.
Toyoda Gosei (Thailand ) Co., Ltd.

Metal parts, safety system products

JPY 457 million

65

---

Weatherstrips, Functional Components

JPY 473 million

100

---

Hoshin Gosei Co., Ltd.

Interiors and Exteriors, Safety Systems

100

---

Fong Yue Co., Ltd.

JPY 230 million

Toyoda Gosei Interior Manufacturing Co., Ltd. Interiors and Exteriors

JPY 80 million

100

---

Kaiyo Gomu Co., Ltd.

Weatherstrips, Functional Components
Miscellaneous goods sales, contract work (employment forpeople with disabilities)
Transport, warehousing, vehicle maintenance, subcontracting, etc.

JPY 36 million

53.6

---

JPY 10 million

100

---

Tianjin Toyoda Gosei Co., Ltd.

---

Tianjin Star Light Rubber and Plastic Co., Ltd.

Development, manufacture, and sales of optoelectronics
products
Design/technical development, sales/procurement
Functional Components, Safety Systems, Interiors andExteriors
Weatherstrips

JPY 152 million

Optoelectronics product sales

Toyoda Gosei (Zhangjiagang) Co., Ltd.

TG Opseed Co., Ltd.

Design, planning, model creation
Building cleaning and maintenance, equipment
maintenance and management, building security
Applied optoelectronics products

Toyoda Gosei Optoelectronics (Shanghai) Co., Ltd.

FTS Co., Ltd.
TGAP Co., Ltd.
TG-Techno Co., Ltd.

Mold design, staffing, business contracting

Chusei Gomu Co., Ltd.

Weatherstrips, Functional Components

TS Opto Co., Ltd.

Manufacture and sales of optoelectronics products

TG East Japan Co., Ltd.

Tecno Art Research Co., Ltd.
TG Maintenance Inc.

100
34.2

---

90（TGNA90%） Toyota Tsusho
Toyota Tsusho,
othersHinode Gomu Kogyo Co., Ltd.

JPY 30 million

MXN 781.8 million

100

---

94.8

Ichiei Kogyo Co., Ltd.

TG Logistics Co., Ltd.

CapitalBRL 90 million

Tai-yue Rubber Industrial Co., Ltd.

TG Welfare Co., Ltd.

TE Opto Corporation
Toyoda Gosei (Shanghai) Co., Ltd.

THB 400 million 78.5（TGAS78.5%） PPC, others
PCR

USD 400,000

85

Mr.Cheng

Safety Systems, Interiors and Exteriors

USD 46 million

97.95

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

Weatherstrips, Functional Components

USD 16.5 million

70

Toyoda Gosei (Tianjin) Precise Plastic Co., Ltd.

---USD 10.53 million

98.6

Kanto Kasei
Tai-yue Rubber,othersToyota Tsusho

JPY 20 million

100

---

JPY 480 million

100

---

Fuel tanks, fuel system parts

JPY 3 billion

23.8

---

Interiors and Exteriors, supplies, prototypes

JPY 36 million

100

---

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

Interiors and Exteriors

95（Toyoda Gosei Toyota Tsusho
USD 19.1 million 65%,
Fong Yue 30%)

JPY 20 million

100

---

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

Weatherstrips

USD 2.9 million

25.2

Tai-yue Rubber

JPY 396 million

33.4

---

Toyoda Gosei Korea Co., Ltd.

Market surveys, sales administration

KRW 300 million

100

---

JPY 490 million

100

---

Northeast Japan regional headquarters and production company JPY 490 million

100

---

Europe & Africa
Toyoda Gosei Europe N.V.
Toyoda Gosei UK Ltd.
Toyoda Gosei Czech, s.r.o.
Toyoda Gosei Meteor GmbH
Toyoda Gosei South Africa (Pty) Ltd.

Americas

56

Products/business sector

Toyoda Gosei North America Corporation

North American regional headquarters

TG Personnel Services North America, Inc.

North American personnel agency

TG Missouri Corporation

Interiors and Exteriors, Safety Systems

USD 240 million

100

USD 100,000 100（TGNA100%）
USD 30 million-----

80（TGNA80%） Mitsui & Co.

Design and technical development sales

EUR 500,000

100

---

Weatherstrips, Interiors and Exteriors

GPB 38 million

91.1

Toyota Tsusho

Safety Systems, Functional Components, Weatherstrips

Toyota Tsusho

CZK 970 million

80

Weatherstrips

EUR 25,000

100

---

Safety Systems, Weatherstrips

ZAR 6 million

65

Toyota Tsusho

57

1 Haruhinagahata, Kiyosu, Aichi,
452-8564, Japan
Public Relations Dept., General Administration Division
Phone: +81-52-400-1452
2018.12.1,500 TP Japan

Fax: +81-52-409-7491