TOYODA GOSEI REPORT 2014
［Report on Activities in FY2013］

Toyoda Gosei Group Management Philosophy
Management Philosophy[Good corporate citizenship]

Boundless Creativity & Social
Contribution

We aim to, as a global corporation, strive to be a trustworthy, respected corporate citizen by honoring both the letterand the spirit of law and rule of every nation, and throughcommunity based business activities and contributing toindustry, economy and the society.

[Customer satisfaction][Respect for the environment]

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

We aim to dedicate ourselves to create a prosperous
society and make the Earth a better place to live throughour business activities such as providing environment preservation, energy-saving and safe products.

[Respect for individual][Steady growth]

We aim to realize a vibrant corporate culture throughinnovative thinking of individuals and enhanced team workvalue based on shared responsibility and mutual trust
between employees and management.

We aim to ensure steady growth as a global leading manufacturer in high-polymer and LED technologies through a strengthened corporate structure and the management that can adapt
to changes.

Management
Philosophy

Charter for
Business Ethics

TG 2020
VISIONTG Spirit

TG SPIRT

憲 章
Charter for Business Ethics
行 動This charter shows the ethical standards and values
to be shared throughout the Toyoda Gosei Group. 理 念経 営【Corporate Social Responsibility】【Company-Employee Relationship】
・Creation of healthy, pleasant workplaces
・Management of assets and conﬁdentiality【Company Business Activities】
・Development and production
・Sales・Procurement
・International business・Environmental conservation【Company-Society Relationship】

・Public relations activities throughout the world・Social contribution activities
・Elimination of antisocial forces
・Relations with public agencies【Personal Conduct】

・ Healthy social activities
・Prohibition of insider trading
・Traﬃc safety

01

TOYODA GOSEI REPORT 2014

TG 2020 VISIONV I S ION
TG 2020

In conformance with our Management Philosophy,
the TG 2020 VISION is a clear expression of thedirections for the Group s eﬀorts and where wewant to be in 2020.

[What we aspire to become]To be a truly global supplier of choice thatdelivers the highest levels of satisfaction tocustomers worldwide[Main pillars of activity]

1. Delivering the best for less
2. Acquiring new technologies ﬁrst
3. Consolidating business foundations[Human resources : The key to our activity]
Enhance individual capabilities ＆Encourage inter-organizational cooperation

TG Spirit
The key values shared by the TG Group globally【Continuous Kaizen】【Customer Oriented】【

Challenge】【

Respect】【

Ownership】【

Teamwork】

About TOYODA GOSEI REPORT 2014

Contents

Editorial policy

This report principally covers the period above, but content related to otherperiods may be included as needed.

Scope

Caution regarding forecasts

Reference Guidelines● The Global Reporting Initiative (GRI)

Date of Issue

July 2014 (Next publication scheduled for summer 2015. Previous
publication July 2013.)

Contact information for inquiries about this report
Public Aﬀairs Dept., General Administration Division (Headquarters)
TEL. +81-52-400-1055

FeatureFAX. +81-587-34-3309

This report can also be viewed on the Toyoda Gosei website.
http://www.toyoda-gosei.com/

Becoming One Team, One TG
Stronger global competitiveness with deeper
collaboration among group companies

Business Reports
11

Business Portfolio

12Reports by Business Area

Management Reports
15

Corporate Governance

16Compliance17

Risk Management

Social Reports
18

Customer Relations

21

Employee Relations

26

Shareholder Relations

27

Supplier Relations

28

Involvement with Local Communities

Environmental Reports
31

Global Environmental Protection Activities

32

Fifth Environmental Action Plan

34

Prevention of Climate Change

36

Effective Use of Resources

38

Control and Reduction of Environmental Substances

39

Environmental Management

43

Environmentally Efficient LEDs

44

Environmental Protection Costs / Independent
OpinionFinancial Reports
45

Operating Results and Financial Position

47

Consolidated Five-Year Financial Summary

48

Consolidated Balance Sheets / Consolidated

FAX. +81-52-409-7491

Environment Administration Dept., Plant Engineering & Environment Division (Kitajima Technical Center)
TEL. +81-587-34-3291

Letter from the President

5

Corporate Data

Sustainability Reporting Guidelines Version 3.0 (G3.1) *1● Ministry of the Environment
Environmental Reporting Guidelines, 2012 Edition *1
Environmental Accounting Guidelines, 2005 Edition* A comparative table of these guidelines can be found on our website.
http://www.toyoda-gosei.co.jp/csr/dl/

3

Financial Reports

This report includes predictions and forecasts pertaining to
Toyoda Gosei s future plans, strategies, and business performance.
These statements are based not only on past facts but on
assumptions and opinions, made through information available atthe time of writing. It also contains information on risks anduncertainties related to economic trends, intensiﬁcation of competition in the automotive industry, market demand, taxes, laws,
systemic changes, natural disasters and other factors. Please notethat actual results may vary from our predictions.

Editorial Policy / Contents

Environmental Reports

In principle, the companies covered are those consolidated in the
Toyoda Gosei Group. The scope is outlined individually for someitems.

2

Social Reports

April 1, 2013 to March 31, 2014

Toyoda Gosei Group Management Philosophy

Management Reports

Period covered by report

1

Business Reports

This report was planned and developed as a single publication
combining our Social/Environmental Report and Annual Report togive stakeholders a fuller understanding of the Toyoda Gosei
Group s stances and activities in various ares, so that we may win
their greater trust. This report stresses the issues we consider
important and want to convey to our stakeholders to make ourGroup s business activities easy to understand. We have also
included opinions from stakeholders and comments from employees engaged in various activities. This report is composed of an
introductory section including special features and a main reportcovering the ﬁve categories of business, management, society,environment and ﬁnance. The feature in the introduction section
looks at the activities of the TG Group in becoming One Team,One TG amid rapidly progressing globalization. This is followedby reports describing our activities in 2013 and their results ineach global region.

Statements of Income

Corporate Data
49
52

Global Network / Network in Japan
Corporate Data / Directors / Audit & Supervisory Board Members / Corporate Officers /Stock Information

TOYODA GOSEI REPORT 201402

Letter from the President

As One Team, One TG, all 30,000 employeesof the Toyoda Gosei Group are working with the shared aspirationof becoming a truly global supplier of choice that delivers
the highest levels of satisfaction to customers worldwide.
The Toyoda Gosei Group is a global supplier specialized inrubber and plastic automotive parts and light-emitting diodes(LEDs), with a network of 64 group companies in 18 countries and regions worldwide. Our recent development eﬀorts
focus on lighter and more compact automotive parts. These
products meet rising demand for environmentally friendly
components that contribute to energy-eﬃcient cars. We arealso vigorously supplying airbags and other components forsafer driving, which is another element of international
demand. Our endeavors further include the development ofeven more luminous and eﬃcient LEDs, and other companywide activities to reduce carbon emissions and other burdens
on the global environment.

A look back at FY2013
In FY2013, healthy North American and Chinese markets, alongwith new model launches in Japan, sustained the global automotive market, despite a production growth slowdown inSoutheast Asia and other emerging markets. The LED market
has continued to grow with the spread of smart phones, tablet
computers, and LED lighting, but market entry by new companies has led to increasingly ﬁerce price competition.
To achieve sustainable future growth in the changing business environment, we have been focusing on two areas:
improving product competitiveness for business expansion,and moving aggressively in growing markets.
The ﬁrst area, improving product competitiveness for businessexpansion, is exempliﬁed by the development of the transparent acrylic radiator grille used on Toyota s new Harrier (LexusRX) model. This invention received a Product Commendationin the Technical Division for improved appearance quality.
Toyoda Gosei s airbag performance, especially in terms offaster deployment, has also greatly improved. Our newly
developed knee airbags boast standardized design speciﬁcations and a simple, easy-to-assemble structure. The Slim BaseLights, our new LED ﬂuorescent tubes, feature 50% lessenergy consumption and a six times longer service life than

Tadashi Arashima
President
Toyoda Gosei Co., Ltd.

conventional ﬂuorescent tubes, at about half the weight.
Another product, Sanken Neo View LED lighting ﬁxtures,
jointly developed with Sanken Electric Co., Ltd., received theGood Design Award, Japan s leading industrial design award.
These ﬁxtures allow the light to be controlled to match various
purposes.
Our second area of focus, moving aggressively in growing
markets, is prompted by the increasing importance of interna-

03

TOYODA GOSEI REPORT 2014

tional markets. Sales outside Japan exceeded those within
Japan in FY2013 for the ﬁrst time in the company s history,
and we are investing actively in many parts of the world. In

Environmental protection and CSR
activities for sustainable societies

the Americas, we established new companies and increased

To grow as a good global corporate citizen together with all thecapacity at existing plants to deal with rising demand there.

societies in which we operate, the Toyoda Gosei Group contrib-

In Asia, we expanded a plant in Indonesia to meet growing

utes to environmental protection and conducts volunteer

demand for airbags and a plant in Tianjin, China, to increase

activities rooted in local communities.

sales of automotive sealing products. In Europe, we established a new company in Germany for sealing products toincrease our business with European automakers andstrengthen our revenue base. These and other eﬀorts are serving to solidify our business foundation and strengthen our
global presence.

FY2014 and beyond
In the automotive parts business, we anticipate increasingly
intense competition, including ﬁerce price competition with
suppliers from emerging countries and global competition in
product development. In Japan, an aggressive move is necessary in the expanding market of Kei cars, vehicles with 660 cc
engines. In the optoelectronics business, further growth isexpected mainly in room and vehicle lighting, but growth in
the backlight business will slow down, with the end of thiscycle in the spread of tablet computers and other devices.
Price competition also continues to drive prices down,
increasing the severity of the business environment.
Aiming to become a truly global supplier of choice that delivers the highest levels of satisfaction to customers worldwide,
as put forward in the TG 2020 VISION, we are adopting the
key policies of :(1) Steady quality improvement with a manufacturingsystem that prevents the creation or passing on of
defects;(2) World-class product creation and global expansion
through process and material innovations;(3) Pursuit of product planning and the development ofleading-edge technologies that meet market and customer needs ; and(4) Sales expansion by integrating technology, manufacturing and marketing.

Based on our Fifth Environmental Protection Plan, establishedin FY2011, we have replaced 1,000 high ceiling mercury lamps with
our own LED lighting at work sites in Japan. This is expected toreduce CO2 emissions by about 60% compared with conventional
mercury lamps. We plan to continue with this changeover until
the remaining 2,000 lamps are replaced by FY2015. Since 2009,
we have also been expanding our tree -planting project in Japan,
China, Southeast Asia and the USA, to make workplaces greener,
help unify employees and raise their environmental awareness,and build ties with local communities. At the end of FY2013, thenumber of trees planted already exceeded 240,000 at 16
locations internationally. Our environmental activities have beenrecognized outside the company. In an environmental management survey conducted by the Nihon Keizai Shimbun, Toyoda
Gosei was ranked ninth among Japanese manufacturers, which is
the top ranking among Japanese automobile parts manufacturers,
putting us in the top 20 for the seventh consecutive year.
Moreover, to help people in the East Japan region recover fromthe 2011 Earthquake and Tsunami, we have been donating LED
security lights equipped with our own LEDs to Iwate and Miyagi
prefectures. We also actively support sports activities indisaster-struck areas. We have been selling products from theregion in our company cafeterias and are making other recovery
support eﬀorts aligned to the needs of the disaster areas.
Worldwide, we have continued our Global Society Activities, withparticipation growing to 7,000 people. Activities in FY2013 included
visiting a center for disabled children in Thailand and an elderly
welfare facility in the USA, donating daily use items, and helping
people in other ways. We are actively continuing these eﬀorts to
support local communities in countries around the world.

Final words
Under the management principles of customer satisfaction,

As One Team, One TG, the entire Group will work togethersocial responsibility, and environmental friendliness, the entire

to strengthen our technical development, marketing andToyoda Gosei Group will continue to do its utmost for all TG

manufacturing capabilities for sustainable growth.

stakeholders. To provide quality products and make the world
a better place, our 30,000 employees worldwide are working
as One Team, One TG.

TOYODA GOSEI REPORT 201404

Feature

Becoming One Team,

Stronger global competitivenesswith deeper collaboration among group companies■ Automobile sales trends
by country
400
（%）
300

Emerging markets are key to growth200

The globalization of Japan s automobile industry has continued100

to accelerate over the past several years. While sales rates for

400

300

200

0
BrazilThailandIndonesia

numbers of units sold are nearly ﬂat for North America, Europe
and Japan, countries such as China, India and Brazil show

outstanding growth. These emerging economies now play a key

100

India
China

role in the growth of the world market, and the automakers

movement toward localization of production in line with thesetrends has been striking. The Toyoda Gosei Group opened its

UK
Germany
FranceMexicoCanada201
3
2 201
201 011 22
200 009 0
2
200 007 8
2
200 005 6
4

USA
Japan

Graphed with 2004 =100 ※2005 =100 for Indonesia
Source : MarkLinesﬁrst American oﬃce in Illinois in 1977, and has since establishedoperations in the Americas, Southeast Asia, China, India, andEurope. Today, we have grown to have 64 group companies in

new companies in Germany and Mexico, expanded opera-

18 countries and regions.

tions at plants in the USA and Canada, and enlarged plant

In FY2013, sales outside Japan exceeded sales withingressing steadily for the FY2014 startup of a Brazilian plant,

Japan for the ﬁrst time in company history, further raising
the importance of international markets. We establishedfacilities in Indonesia. Production preparations are also proour ﬁrst in South America. We plan to aggressively enter
growing markets and strengthen our business globally.

Asia &
Australia
24

group companies 1,893
843

●
●

●

1,078

1,072

'10

'11

1,440

Japan

●
'09

Europe &Africa
5

●

153

147
'10

'11

166
'12

234

●
●●

17

'13

●
●●

●

●

●
●
● ●●

group companies
includingWorld Headquarters(Fiscal year)

●●
●●
●

●
159

'12

●●●

group companies'09(¥100 million)

2,940

2,991

2,899

3,153

3,137

●●

● ●
●

(¥100 million)

●●
●
●●

●●
●

Americas19

group companies
1,629(¥100 million)'13(Fiscal year)

'09

●●

'10

'11

'12

1,005

952

920

'09

'10

'11

1,235

'13

(Fiscal year)

'12

'13

(Fiscal year)

●
●

05

TOYODA GOSEI REPORT 2014●(¥100 million)

One TG

Global Summit examines andand reaﬃrms mutual strengths

An opportunity for collaboration
among Group companies

With the growing importance of international markets, we

The Summit was followed by increased networking amongber 13, 2013. This was an opportunity to reaﬃrm our strengths

panies outside Japan. One example of this is the holding ofheld a Global Summit in Japan over four days from Septemand take a good look at each other s operations in various
countries, as we move toward the sustainable growth of

Toyoda Gosei. The Summit brought together about 100

participants̶both leaders of overseas operations (about 40

people) and participants from Japan. TG President Tadashi
Arashima gave the keynote address, describing the purposegroup companies and the sharing of successful eﬀorts at commini-summits. People from production sites that have thesame processes̶plating, airbags, extrusion, leather-wrapping
on steering wheels̶have taken it upon themselves to sharewith each other issues they are facing and try to work out
solutions in pursuit of the best processes. Another is greateruse of kaizen activities using karakuri. Based on ideas theyof the Summit and the things to value and respect in our daily

obtained in the karakuri workshop, various sites have takenengineering, production, and other business areas, who

In other activities, a representative from the Headquarters,work. He was followed by representatives from marketing,

explained TG s basic policies and mid- and long-term eﬀorts.
A designer also gave a presentation on new products andtechnologies from the design perspective. Other activities

included tours of main rubber and plastics plants, where par-ticipants saw the actual work on various production lines, asafety workshop showing examples of unsafe situations andbehaviors, and a karakuri workshop with examples of kaizen

using traditional Japanese technical mechanisms without

electricity. Presentations on successes at operations outside
Japan allowed participants to share more information than
before and reaﬃrm the strengths of Toyoda Gosei.

measures to establish more eﬃcient processes.

which is leading eﬀorts to reduce environmental impacts,
visited North American companies to determine issues thatneed to be addressed and provide guidance to local repre-

sentatives. We plan to spread this action to other regions as
well. We also moved forward in sharing information on bestpractices among operations in various countries. For example,
during a human resources and labor meeting in North

America, a presentation was given on labor management
practices at TG Czech.

The TG 2020 Vision sets the goal for the Toyoda Gosei

Group of becoming a truly global supplier of choice that delivers the highest levels of satisfaction to customers worldwide.
This Global Summit was one activity to move us towardachieving that goal. In the future we will continue these activities as One Team, One TG, working together and growing
with open minds to become a truly global supplier.

Keynote address by President Arashima

China
Regional
Headquarters

Presentation by designer

Americas
Regional
Headquarters

Shanghai
TG

TGNA

Japan
World
Headquarters

Plant tour

Safety workshop

Europe &AfricaRegional
Headquarters

Asia &
Australia
Regional
Headquarters

TGE

TGAS

TOYODA GOSEI REPORT 201406

Feature

Becoming One Team, One TG

Stronger global competitivenesswith deeper collaboration among group companies

Global Reports

Regional leaders who attended the Global Summit report on 2013 trends,
regional outlooks, and future eﬀorts in the North America, Asia and Oceania,
and Europe and Africa regions.

North
AmericaPursuit of expanded sales to non-Japanese manufacturers
and improved proﬁt structure■ Regional overview

Toyoda Gosei s Tree-Planting Project came to North

recover in FY2013, with steady growth to about 16.5

TG Kentucky LLC. More than 4,000 volunteers, includ-

North American automobile production continued toAmerica for the ﬁrst time with a tree-planting event at

million units. Further moderate growth in production

ing TG employees, community residents and suppliers,

volumes is predicted with increasing demand andgreater investment by auto manufacturers, centered on
the USA and Mexico. Parts makers should see increasing orders from Japanese automakers, America s big

three (GM, Chrysler, Ford), and other foreign automakers. This will serve to further to improve our businessbase in the USA, Canada, and Mexico.

■ Results in FY2013

participated in planting some 35,000 seedlings ofnative tree species.

■ Looking ahead

Continuing steady growth is predicted for the North

American region in FY2014. With renewed awareness of
the importance of this region, we are focusing on ﬁve

areas̶safety, quality, strengthened manufacturing, humanresources development, and CSR/compliance̶to expand

Eﬀorts to increase sales and proﬁts, based on the 2018

sales and achieve stable production and higher proﬁtabil-

have begun to produce results with expanded sales to non-are cultivating people and workplaces through activities

increased production by our customers and create newgood examples among operations. To maintain the high-of TG Minto in Canada and the establishment of Toyoda

January 2014 to develop people and processes that

Our eﬀorts to improve technical capabilities and assure

improve our proﬁt structure, group companies are

Toyota Motor Engineering & Manufacturing North America,

are working together for process innovation and smooth(Tundra) by Toyoda Gosei Texas LLC, a Quality Performance

production layouts across North America. To develop the

Value Improvement Award by Toyoda Gosei North America

strength for future growth, we are implementing phased

ening global collaboration with the World Headquarters andlocation. And in the area of CSR/compliance, we are con-

North American Sales Strategy we developed in FY2012,ity. To ensure safe workplaces with no major accidents, weJapanese automakers. Steps taken in FY2013 to respond tocentered on our North America Safety Committee, sharing

sales included the start of operations at the Stratford Plant

est levels of quality, we are continuing activities begun inGosei Rubber Mexico S.A. DE C.V. to produce rubber hoses.

prioritize quality. To strengthen manufacturing andquality were also recognized with Excellent Awards fromcollaborating more closely, production and engineering

Inc., including the receipt of a Launch Performance Award

new product startup, and we are establishing optimumAward by TG Automotive Sealing Mexico S.A. DE C.V., and acore human resources we need to raise organizational

Corporation on behalf of the Toyoda Gosei Group. Strength-

management and middle management training at eachother regions, we will continue activities to expand sales

tinuing activities to contribute to our local communities,

and increase proﬁts.

including the ﬁrst tree-planting event in North America in

Serving our communities is also important to us, and weawareness of compliance through education and training

will continue to be active in this area. In March 2014,

Toyoda Gosei s Tree-Planting Project, and cultivating anof all employees.

Message
Stronger manufacturing and thinking across divisional boundaries were sharedconcerns at the Global Summit, and we reaﬃrmed the importance of quality
diﬀerentiation and human resources development. I felt we are truly One
Team. For the sustained growth of our business in North America, collaboration with operations in all countries is important. We are increasing suchcollaboration while incorporating successful activities from other regions, referring to global benchmarks and ideas to achieve policy goals. In addition to ourquality assurance activities, last year we shared information on IS systems withToyoda Gosei Czech and actively pursued cross-regional eﬀorts.

07

TOYODA GOSEI REPORT 2014

Toru Koyama
President of
Toyoda Gosei
North America
Corporation

Asia

Reliable technology transfer, local procurement,
and in-house production to strengthen sales activities
and increase our competitiveness in the region■ Regional overview

to meet demands from increased vehicle sales; and took

ences exist between countries and regions. Indonesia contin-

and plastic parts. In India we began local production ofmobile sales exceeded 1.2 million units. The low cost green

achieved integrated production of body sealing parts,

While economic growth in Asia overall is strong, large diﬀer-

the ﬁrst steps toward in-house production of metal cores

ues to show growth of more than 10%, and in FY2013 auto-

extrusion materials previously imported from Thailand, andcars (1,000cc class) introduced in the second half of FY2012

including mixing, extruding, and secondary processing.

rising fuel costs have contributed to sluggish automobile■ Looking ahead

are now also selling well. In India, where high interest andsales, signs of an upturn are seen with the announcement in

February 2014 of a lowering of the automobile commodity
tax. We are also seeing moves by automakers to source
parts locally and other ways to optimize procurement inorder to strengthen their competitiveness in the region.

■ Results in FY2013

In Thailand we held an exhibition in May 2013 to promote
new products and technologies and raise the name recognition of the Toyoda Gosei Group. In Indonesia, productionof passenger-side as well as driver-side airbags was begun

to meet the demands brought by the new ASEAN New Car
Assessment Program (ASEAN NCAP). We also began local

production and delivery of leather-wrapped steering wheels,
previously delivered from Thailand; expanded plant buildings

With rising labor costs in Asia, reducing labor hours

through simple automation and kaizen will be an importanttask in FY2014. We will also continue activities to reduce

costs and maintain price competiveness. In individual countries, we are making eﬀorts to increase sales to customers

other than Toyota Motor Corporation in Thailand. We areprocuring more parts locally in Indonesia while also beginningin-house forming of steering wheel cores and plastic covers

for low-cost compact cars. A new assembly factory for fuelhoses and other functional parts is also planned. To improve
our price competitiveness with local suppliers in India, we are

expanding production facilities such as extrusion lines, begin-ning production of steering wheel die cast products in-house,and moving toward more local procurement.

Message
At TG s Global Summit we learned about the status of activities in Japan andother countries, while at the same time discovering what is lacking in the
Asia & Oceania region and what we can do to improve. We became moreaware of the need for an attitude of learning from each other, exchanging
information and cooperating, and stronger promotion of our products globally. We also recognized that orders in one region aﬀect other regions. The
Summit motivated us to work harder to prevent accidents, strengthen compliance, and improve QC circle activities. We will do our best to make theentire Asia & Oceania region a driver in the globalization of Toyoda Gosei.

Asia and
Oceania（China）

Kyoji Ikki
President of
Toyoda Gosei
Asia Co., Ltd

Increased price competitiveness with top priority
on safety and quality as production and salesof Japanese automakers recovers■ Regional overview

Sales of Japanese automakers began to recover in FY2013,
following a period of sluggishness due to anti-Japanesesentiment stemming from island territorial disputes andother problems. In all of China, a new record was set withsales of nearly 22 million automobiles, an increase of

13.9% from the previous year. Both production and sales
led the world for the ﬁfth consecutive year, while thegrowth rate recovered to double digits after falling to
below 5% for the previous two years.

■ Results in FY2013

In addition to our ongoing activities to win orders fromToyota Motor Corporation, in FY2013 we did our utmost
to expand business with other automakers. In China weare conducting sales activities with engineering and sales
in long-term collaboration, while building a solid foundation as a global supplier. We have built strong relation-

ships of trust with customers, and have started to become
involved from the stage of product development in new

vehicle development. These eﬀorts have borne fruit with

TOYODA GOSEI REPORT 201408

the receipt of many commendations from customers in

the areas of quality, R&D, supply, and environmental protection.

planned for Toyoda Gosei (Foshan) Rubber Parts Co. toincrease sales of fuel parts, and plans are underway for an

expansion at Toyoda Gosei (Foshan) Auto Parts Co. to growbusiness with new customers. Toyoda Gosei Group compa-■ Looking ahead

In FY2014 we will strengthen technical functions at

Toyoda Gosei (Shanghai) and conduct sales activities witha united engineering and sales team. We will installevaluation equipment for this purpose and move into a
research and development zone. A plant expansion is

Messagenies in China are united in working to raise productivity,

strengthen local procurement, and develop human resources.
The adoption of stricter environmental measures amid rising
environmental concern in China is good news for Japanese

automakers, who boast advanced environmental technologies, and we hope to actively use this in our sales promotions.

Through their conversations with executives from the World Headquarters
and other regions at TG s Global Summit, our local staﬀ was greatly motivated. We learned about eﬀorts in Japan and other countries, gaining hints
for improvement of our own operations. Currently we are carrying out
activities to instill the TG Spirit and issuing an in-house newsletter with theaim of cultivating a One Team, One TG mindset. We are also strengthening our engineering functions for the localization of product and partassessment, and from 2014 will hold Chinese QC circle conferences toenhance TQM activities.

EuropeandAfricaRyo Onishi
President of
Toyoda Gosei（Shanghai）
Co.,Ltd.

New business centered on European automakers,
localization of production,
and a stronger product development base

■ Regional overview

emblems from a German manufacturer, and orders for

The European automobile industry retains its excess

airbags to be equipped on a newly developed vehicle

tinue in ﬁerce price competition using multiple purchaseToyoda Gosei Meteor GmbH and acquired the assets oftries was 12.3 million, stuck at the same level since 1995.

strips. This will strengthen our business foundation inpelled by a growing middle class, and Japanese andmakers and making available to us the original technolo-

production capacity and the major automakers con-from a Japanese manufacturer. We also establishedincentives. The number of units sold in the 30 EU coun-

Meteor Gummiwerke (Germany) to produce weather-

The African market, on the other hand, is being pro-

Europe both by expanding business with European auto-

other manufacturers are launching new models to meetgies of Meteor.

the diversiﬁcation of consumer tastes.

■ Results in FY2013
The trust we have built with our accomplishments inthe supply of automotive sealing products led to theacquisition of new business with a British automaker in
FY2013. In other business areas, we acquired neworders centered on interior parts from Japanese manufacturers, orders for millimeter wave radar compatible■ Looking ahead
In FY2014 we will build a foundation for local design toaccommodate increased production of interior and exterior
parts. We will also look into local production of plastic ﬁller
pipes, and work to create systems that will allow us toquickly reﬂect European needs in new automotive sealing

products and strengthen the development and design ofsafety system products for European customers.

Message
The Global Summit was an opportunity for us to learn about successful
activities and improvements in other locations and get to know and share
information with our colleagues in other countries. The Toyoda Gosei
Group will grow with all group companies around the world working
together, and the Summit motivated us to strive for further development asa global corporation. This will include strengthening sales activities withreference to successful activities in other countries, raising our awarenessof compliance, and cultivating the problem-solving skills of employees.

09

TOYODA GOSEI REPORT 2014

Tetsumi Ichioka
President of
Toyoda Gosei
Europe N.V.

TO
TO
P IPCI CS S

Global Milestones in FY2013
The Toyoda Gosei Group is expanding in growing markets and consolidating its operating
foundation with the aim of being a true global supplier. Here are some of our major milestones in FY2013.

Americas

Operation at new plants in the USA and Canada
Production started at new plants to make plastic fuel tubes in the
USA and instrument panel components in Canada to meet growing
demand in North and South American markets.

USA : TG Fluid Systems USA Corporation
Powell Plant

Canada : TG Minto Corporation Stratford Plant

Establishment of new company
in Mexico
A new company (Toyoda Gosei Rubber Mexico S.A.
de C.V.) was established in Mexico to produce
rubber hoses to strengthen competitiveness andstrengthen our supply system in North and SouthAmerican markets.

Start of production preparations
tio
in new company in Brazil

Production equipment is being gradually installed
for the start of full operation at a production baseestablished in Brazil in March 2013.

GDBR Industria e Comercio de Componentes
Quimicos e de Borracha Ltda.
Toyoda Gosei Rubber Mexico

Asia&
Oceania

Europe&AfricaEstablishment of new company
in Germany

Expansion of plantant
in Indonesia

An Indonesian plant was expanded inJuly 2013 to meet growing demand
for airbags in the ASEAN region.

A new company (Toyoda Gosei
Meteor GmbH) to produce weatherstrips and other products was established in Germany in January 2014 inorder to expand business with European automakers and strengthen ourbusiness foundation in Europe.

Area of expansion
P.T. Toyoda Gosei Safety Systems Indonesia

Toyoda Gosei Meteor GmbHTOYODA GOSEI REPORT 201410

Business Portfolio
Expanding business globally as a best partner inthe fields of polymers and optical semiconductors■ Business area

Automotive Sealing ProductsInterior and Exterior Parts

Functional Components● Door Glass Runs

● Fuel Tank Module Components● Door Weatherstrips● Power Train Parts● Opening Trim Weatherstrips● Chassis and Drive Train Parts● Instrument Panels Modules
and Components● Interior Products Using LEDs

● Luggage Weatherstrips● Automobile Accessory Parts● Radiator Grilles

Optoelectronic Products

General Industry Products● LED Lamps, Chips, Modules● Telecommunication Device Components

Safety System Products● Airbags● Steering Wheels● Air Conditioning Products● Pop-up Hood Actuators● Home Construction Components● Construction and Industrial
Machinery Components■ Sales by business field(Rounded down to nearest billion yen)

FY2013

FY2012

ChangeAmount Component Amount Component （％）(billion yen) ratio (%) (billion yen) ratio (%)

Automotive Sealing Products

129.6

18.8

115.7

19.3

12.0

Functional Components

78.6

11.4

66.0

11.0

19.0

Interior and Exterior Parts

213.0

30.9

185.9

31.0

14.6

Safety System Products

198.7

28.8

167.5

28.0

18.6

Automobile Parts Business Total

620.0

89.9

535.2

89.3

15.8

Optoelectronic Products

52.0

7.6

54.8

9.1

▲5.0

General Industry Products

17.3

2.5

9.4

1.6

84.0

689.4

100.0

599.6

100.0

15.0

Total

11

TOYODA GOSEI REPORT 2014

General Industry Products
2.5%
Automotive
Optoelectronic
Sealing Products
Products
18.8%
7.6%

Functional
Components
11.4%

Safety System
Products
28.8%

Interior andExterior Parts
30.9%

Reports by Business Area

Highlights of FY2013

Functional Components
Highlights of FY2013■ Greater use of environmentally-friendly
surface treatment agents■ Expanded global production oflightweight (plastic) parts

we apply water-based surface treatment agents withrecent years has increased demand for more lightweight,

the aim of reducing volatile organic compounds, aenvironmentally-friendly automobile parts.

substance of concern. Conventional door weatherstrip

In 2013 we began preparations to mass produce plastic

surface treatment agents are modiﬁed to achieve thefuel ﬁller pipes globally. Previously, they had been pro-required performance of each product, and applicable

duced only in Japan.

products for opening door trim and sun roof weather-

In 2014 we expanded production of lightweight parts

stips are expanded.

made of plastic, including turbo ducts and fuel ﬁller lids.
Additionally, we are continuing to develop plastic andrubber materials and products with properties such as
ﬂexibility, electrical insulation, and low thermal conductiv-

Social Reports

Rising fuel costs and growing environmental awareness inManagement Reports

For manufacturing that lessens environment impacts,

Business Reports

Automotive Sealing Products

ity for alternative energy vehicles including hybrid, elec-●③

tric, and fuel cell vehicles.
● Fuel tank module components●②① Door glass runs
② Opening trim weatherstrips③ Door weatherstrips●②

Fuel limit
vent valves

Financial Reports●①

Fuel fill lids

Continuing development of high-function parts
used around fuel tanks; product manufacturingthat anticipates environmental regulations

Fuel filler caps●③
Fuel tubes

Plastic fuel filler pipes● Hoses, turbo ducts, and boots
Development of hoses and boots that support braking,engine, and driving systems

Corporate Data

The best door
sealing structures areproposed for diverse
door function anddesign needs

Environmental Reports●①

Brake hoses
Lightweight opening trim forcompact cars
Rubber materials and metal
inserts are modified to achieve
lighter weights

Turbo ducts(Rubber) (Plastic, 1-piece construction)

Constant velocity joint boots

FY2013 (consolidated)

FY2013 (consolidated)

Sales ：129.6 billion yen

Sales ： 78.6 billion yen

Percentage of company sales ：18.8%

Percentage of company sales ：11.4%

TOYODA GOSEI REPORT 201412

Interior and Exterior Parts
Highlights of FY2013

Safety System Products
Highlights of FY2013■ Development/production of stylish instrument panels■ Development/production of transparent grilles
To survive the ﬁerce competition of the global auto industry,
we are innovating our manufacturing processes and eliminating waste and loss. At the same time, we are developing production technology to shorten lead times from material procurement to ﬁnished product, and strengthening our corporate culture. By strengthening production in all countries andspreading production technology development to countries
other than Japan, we continue to reﬁne our global competitiveness.
In FY2013 we began production of instrument panels with a
new design look, as well as transparent acrylic radiator grilles
that make use of two-color molding technology. We alsobegan selling millimeter wave radar system-compatible
emblems in countries outside Japan.

■ Increasing production capacity forsafety system products in Indonesia
In addition to driver-side airbags, we produce newly-

developed, compact passenger-side, side, curtain, and knee

airbags at locations worldwide. These airbags protect vehicle
occupants; to protect pedestrians we also produce pop-up

hood actuators that lift the rear part of the hood instantaneously to lessen impacts on the heads of pedestrians duringcollisions.

Together with eﬀorts to develop high performance airbags

that protect vehicle occupants in collisions of all forms, weare actively working on fusion technology that combines preventive safety in next-generation products. In development,

we are expanding the scope of safety beyond vehicle occupant safety to also include pedestrian safety, and developing

pedestrian protection airbags. We are achieving cost reductions with design and production technology innovation andfocusing eﬀort on meeting demand in emerging economies

such as China, India, ASEAN, and Brazil where the spread of

airbags is anticipated. Demand for airbags is rising in ASEAN

countries with the introduction of automobile safety evaluation tests, and we will meet this demand with expansion of

an Indonesian plant, introduction of new production facilities,
and enhanced production capacities.
Driver-side airbags

Passenger-side airbags

Curtain airbags Rear-end impact airbags

Instrument panels
Instrument panel modules for new designs

Console boxes

LED map lamp units

Lid slides backward/forward
to open/close for easier use

Radiator grilles

Transparent acrylic radiator grilles that use two-color
molding technology

13Knee airbags
Seat cushion airbags

Side airbags
RR seat console airbags

Pedestrian protection airbags (under development)
Airbags deploy during front
collisions to protect pedestrians

Pop-up hood actuators

Pedestrian head protection devices

FY2013 (consolidated)

FY2013 (consolidated)

Sales ： 213.0 billion yen

Sales ： 198.7 billion yen

Percentage of company sales ： 30.9%

Percentage of company sales ： 28.8%

TOYODA GOSEI REPORT 2014

Highlights of FY2013

General Industry Products
Highlights of FY2013■ Increasing orders for air puriﬁers among
general industry products

Our lineup revolves around white LEDs with world-classIn FY2013 we began production of a new kind of dehumidi-

ness is the high-end notebook computer and tablet com-with new orders for air humidiﬁer puriﬁers. We plan tobrightness and low power consumption. Our core LED busiputer market, from which we are expanding to a second

key market of room and area lighting. The high-luminosity,
high-eﬃciency technology of our LEDs is recognized in themarket, and we aim to expand this business with the develhigher cost performance.

increase sales with continuing orders of the 2014 model. We
will also work to develop products in new ﬁelds based oncollaborations between our development divisions and prod-

ucts including construction machinery parts that utilize automobile technology, home construction materials with theapplication of anti-vibration technology and pocket lights
using our LEDs.

At a Chinese subsidiary that produces mobile phone cases,

we have taken orders for two new smart phone models

Social Reports

opment and supply of LED chips and packages with evenfying/humidifying air puriﬁer and attempted to expand sales

Management Reports■ Expanding our the core LED business of LEDs
for tablet computers to LED area lighting

Business Reports

Optoelectronic Products

following FY2013 and will start eﬃcient, low-waste production.

Environmental Reports

White LED packages forcomputers

Financial Reports

Mobile phone cases

LED backlights fornotebook computers

Corporate DataWhite LED packages for area lighting

LED dynamo lights

LED fluorescent lamps

Air purifiers

FY2013 (consolidated)

FY2013 (consolidated)

Sales ： 52.0 billion yen

Sales ： 17.3 billion yen

Percentage of company sales ： 7.6%

Percentage of company sales ： 2.5%

TOYODA GOSEI REPORT 201414

Corporate Governance

We are building a corporate structure that can respond quickly to environmental changes,
based on sound management and organizational eﬃciency

Responsive, eﬃcient, and healthy corporate management
For sound, eﬃcient management of our business, we arestrengthening corporate governance with the stable rise ofshareholder value as a top management priority. Thismeans maintaining an organizational structure that can
respond swiftly and properly to environmental changes
and a fair, transparent, and robust management systemthat meets the expectations of shareholders, customers,
and other stakeholders.
In addition to legally mandated bodies such as a generalshareholders meeting, board of directors, and board ofauditors, we are creating an environment that allows
accounting auditors to conduct fair audits. For an agile
management structure that can respond to changes in thebusiness environment and to clarify the responsibilities of
directors, we have shortened directors terms to one year
and introduced an executive oﬃcer system to separatebusiness execution and management supervision functions.
We are also putting into place a system that can check
management execution, with deliberative bodies andcommittees to discuss and decide important issues, anddeveloping an internal control system for the purpose of
appropriate and eﬀective business management.
To foster a healthy internal control environment, all groupcompanies share a common management philosophy. We
have also established a common charter of business ethics
for the group. While respecting the management independenceof subsidiaries, we also receive regular business reports
from them and monitor the propriety and legality of theirbusiness practices through advance reports and a review
system. Nonexecutive directors and auditors are also sent
to key subsidiaries to observe and check their business
operations.

■ Corporate Governance System

Shareholders' Meeting
Appointment/dismissal

Appointment/dismissal

Board of Directors

Audit

Board of Auditors

Management committee
Companywide organs
Supervision/
auditing

Audit

Committees

External auditors(Financial and internal
control audits)

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

Various functions / business divisions and subsidiaries

15

TOYODA GOSEI REPORT 2014

Audit

Internal auditing dept.
(Internal control)Compliance

Establishing compliance as a good corporate citizen■ ComplianceCorporate activities

TG
Domestic
Aﬃliates

Support forcompliancesystem

Support forcompliancesystem「Toyoda Gosei
Group Charterfor Business Ethics」「ToyodaGosei Guidelines
for Business Ethics」

Ensuring complianceTG
Overseas
AﬃliatesCompany-wide
Compliance
Advocates Meeting
Compliance Advocatesfrom each divisionInternal andexternal
compliance andsexual harassment
consultation
services

Compliance Month, and feedback on survey results wasgiven to make improvements where necessary. Intensive
compliance training for employees of every level was also
carried out.
■ Major workshops
Workshop nameNew employee workshop

Times held

Participants

2 times48

1 time51

Legal affairs workshop (for mid-career employees)

5 times

256

Sales division antitrust workshop

7 times

124

Workshops for individual divisions

3 times142◆ Strengthening compliance systems of aﬃliates worldwide
We actively support aﬃliate companies in conducting independent
compliance activities based on the corporate policy of
Toyoda Gosei.
In 2013, we held a compliance liaison conference for aﬃliatecompanies in Japan to provide various kinds of support andshare information. Special focus was on support for newly
established aﬃliates as they developed a compliance system.

Corporate Data

New manager workshop

Financial Reports

We are continuing various educational activities to instillin all employees the importance of compliance. Regularcompliance training targets employees at diﬀerent levelsin the company and diﬀerent risks. In addition, we present
simple compliance lessons in cartoon format in company
newsletters and fuller descriptions of legal compliancecases posted to company message boards. We are also
continuing activities to uncover latent risks in eachdepartment and implement measures to prevent problems
from occurring. Compliance activities at the company level
help employees recognize risks in their own department
and take necessary steps.
Every year we conduct a compliance survey of all employees
to determine the level of understanding of compliance they
have acquired through these activities. November 2013 wasEnvironmental Reports◆ Educational activities for compliance awarenessSocial Reports

Corporate Ethics
Committee
All company
executives

Legal affairs/
complianceworkshops

TG
Management
Philosophy

Management Reports

To ensure that employees obey all laws and regulations
and maintain a keen sense of corporate ethics, Toyoda
Gosei carries out thorough compliance activities. In 1997,
we established a Corporate Ethics Committee with the
President serving as chairman and all company executives
as members. In 2009, we replaced the legal liaison oﬃcer,
who served mainly to circulate information relevant torespective divisions, with a Compliance Advocate in eachdivision to lead its activities and ensure thorough compliancewith management and job-site employees working as ateam. We have also established internal and external
compliance consultation services where employees facing
compliance problems in their work can seek guidance fora quick resolution. The Toyoda Gosei Group Charter for
Business Ethics sets out shared values and behavioral
standards for the Toyoda Gosei Group and serves ascompliance behavioral guidelines. Based on this Group
Charter, Toyoda Gosei and all group companies worldwide
have formulated their own speciﬁc behavioral guidelines.
At Toyoda Gosei we have also prepared the Toyoda Gosei
Guidelines for Business Ethics for all employees.

Business Reports

Thorough, group-wide compliance

In September 2013 we held a global summit to bring
together the leaders of all our international aﬃliates in one
place. The summit stressed the importance of complying
with anti-trust laws and preventing bribery, and working
to strengthen the compliance system of the Toyoda Gosei
Group as a whole.

TOYODA GOSEI REPORT 201416

Risk Management

Risk management at Toyoda Gosei consists of employee training and quality assurance
activities for products, as well as information security and disaster prevention measures.

Preparations for large-scale earthquake disasters.
Toyoda Gosei conducts risk management to prepare ourselves
to respond in cases of disaster that threaten our management
and operations. In the wake of the Great East Japan Earthquakeof 2011 we launched a Crisis Management Project and haveworked to raise our ability to withstand major earthquakes.

◆ Crisis Management Project
The Crisis Management Project launched in 2012 aims tostrengthen our emergency response abilities by enhancing crisis
management in two main areas: upgrading and enhancing ﬁrst
responses and clarifying recovery procedures for quick restorationof production. In 2013 we conducted communications training
using Japan s multi-channel access (MCA) radio system (used forvarious purposes from daily work to emergency and disastersituations), satellite telephones, and tablet computers at eachlocation, and conducted trial operation of a system to conﬁrm thewhereabouts and well-being of company individuals. We alsobegan operation of a system that updates every hour with dataon work arrival and departure and business trips. In a deskop exercise,ﬂow diagrams were prepared and action procedures were clariﬁed for restoration of production following a disaster. We haveselected alternative production sites in advance, backed up information systems, and reviewed our network environment. Operations at a disaster recovery system to restore and repair damaged
systems and specialized data centers for computer and data
communications equipment are also being started incrementally.
Resilience training was conducted four times to improve practicalskills in responding to unforeseen events. We will continue tostrengthen coordination between locations and departments andimprove our abilities in ﬁrst response and restoration of production and design functions.

◆ First response in disasters and measures for early recovery
With human life ﬁrst and early recovery as basic principles,
we are reinforcing buildings and facilities to better withstandearthquakes. In 2013 we continued regular disaster response
drills and upgraded operations training for a rapid communication
system and a system to conﬁrm the whereabouts of employees
and their families in earthquakes. We also constructed andregularly update a database for early recovery, including thelocation of alternative facilities and the speciﬁc skills of
employees. We installed an emergency response server inthe ﬁrst response head oﬃce and are developing systems toutilize various kinds of information.
We were fortunate not to have suﬀered any human loss or
major impacts on production or quality in the Great East Japan
Earthquake of 2011, but will continue to establish systems
with recognition of the importance of crisis management.

■ Disaster Response
RecoveryDisaster outbreak ‒ First response【Permanent】
Warning &Monitoring Team

Emergency
Task Force

Disaster occurs
Emergency
earthquake alertFirst Response
Task Force

Life Support
Task Force

Advance Team
(investigative team)Production
Restoration
Task ForceInstructions

District Task Force

Reports◆ Strengthening information security measures and raising awarenessToyoda Gosei maintains strict conﬁdentiality of information. In
2013 we continued to conduct annual checks of thecompliance status of each division, while also conducting
on-site audits of certain divisions. Self-inspections are alsodone at aﬃliates in Japan, major aﬃliates in other countries,
and production sites in China (starting from ﬁscal 2013). We
provide operating standards for information system security
and issue a manual for protecting conﬁdentiality. With the useof this manual, all employees are trained in information
conﬁdentiality through new employee education (including
those hired mid-career) and conﬁdentiality oﬃcers in eachdivision. This manual is revised as necessary and security
news is issued from time to time to strengthen security andraise employee awareness.

■ Enhanced Measures

Prevention

TOYODA GOSEI REPORT 2014

MeasuresHard● Prevention of uncontrolled printing or removal throughemployee ID authentication at digital copiers/printers
and technical drawing printers

Soft● Data encryption of all PCs● E-mail security reinforcement（mandatory supervisor CC）

Hard● Inspection of removed materials (twice monthly)● Increased surveillance cameras● Wired PCs
・ Laptop PCs
・Desktop PCs
・ External HDDs

Soft

● Stricter access privileges to ﬁle servers● Restrictions on items taken out / stronger check function● Acquisition and monitoring of system usage records
and access records● Prevention of unauthorized access (main building/IS
Center, Technical Center)of leaks fromnegligence

Preventionof malicious

unauthorized
leaks

Ethics17

Mode● Review of security management rules● In-house security management education● On-site inspections of each division

Customer Relations

We oﬀer attractive products and services with the customer andquality foremost in mind.

on the customer ﬁrst principle. We also issue Quality System
Global Standards with rules and expert advice for quality
improvement. Since FY2010, we have distributed these standards to all TG locations worldwide as guidelines for local staﬀ
to follow in ensuring consistent product quality.

Basic Quality Policy
Every employee shall bear in mind the concepts of Quality
First and The Next Process is the Customer, engaging inmutual cooperation to provide outstanding products andservices that ensure customer trust and satisfaction.

Social Reports

TQM for a stronger, better company■ Fundamental principles of TQM

TQM̶Total Quality Management̶involves activities
aimed at constant improvement and participation by all,based on the customer-ﬁrst
principle for better-quality
products and work, and toenergize individuals and theorganization.

Customers
ﬁrst

TQM
Participationby allFinancial Reports

Constant
improvement■ TQM activities at Toyoda Gosei
Level
Managerial

Category
Improving workplace management

Staﬀ

Improving SQC (Statistical Quality Control) andLine

Small group activities (QC circle)

QE (Quality Engineering) capabilities (engineering)

Corporate Data

Small group activities (group kaizen)

Small group (QC circle) meeting

Environmental Reports

In keeping with the Quality First concept, we advance TQM
programs at every level of the company, from the top executives to staﬀ and line workers. All employees make constantimprovements from their respective positions to ensure
higher-quality products and work and to increase personaland organizational vitality.
The ﬁrst step in developing global quality control (QC) activities in FY2013 was the solicitation of superior examples
from Thailand and India, with the individuals responsible presenting these examples at a small group (QC circle) meetingin Japan. By developing TQM programs globally based onthese small group activities, we will strengthen the entire
Toyoda Gosei Group.

Management Reports

Toyoda Gosei aims to be a fully global supplier of choice delivering the highest levels of satisfaction to customers worldwide.
Our business activities are integrated with a quality assurance
system covering every stage from development to production,
all based on our Basic Quality Policy. Every one of our plants has
obtained certiﬁcation in the ISO9001 (certiﬁcation by JQAQM7318, QMA11826/12256/12238/13130/12841) andISO/TS16949 (certiﬁcation by JQA-AU0094/0091/0160/0124)
international standards for quality management systems. Each
plant also sets its own quality control goals based on the principles of Total Quality Management, or TQM̶activities that aredesigned to enhance the quality of goods and work throughconstant improvement and the participation of all, and to
improve the quality of goods, services, and management based

Business Reports

Integrated quality assurance, from development to production

Sales activities aligned with customer needs
Sales activities are our ﬁrst point of contact with the customer, and are crucial to responding to the needs of ourdiverse global customer base by learning what customers
need, getting development information from key members intechnology and procurement, and incorporating the information in sales promotions. Our sales personnel cultivate good
relationships with customers while gathering and analyzing

various types of information on matters essential to customers and the problems they face. The content is communicated to relevant departments within TG and used in presenting customized proposals to meet our customers
diverse needs, thus helping to build relationships of mutual
trust.

TOYODA GOSEI REPORT 201418

Monitoring and responding to manufacturing processes and market quality
We promote defect-free process completion in the manufacture of safety-related parts aﬀecting basic automotive functions. Two core approaches are adopted to ensure that our
products never have major quality defects: development ofprocesses using automation to prevent production or passageof any defective parts; and development of personnel toenhance awareness of quality and eliminate mistakes. We also
have full-time auditors who audit and improve processes at all
our production sites globally, while site managers provide leadership in the quality assurance declaration program that has
been applied successfully in Japan. These and other activities
are undertaken with the aim of earning the reputation amongcustomers worldwide that Toyoda Gosei equals quality.

Systems are also in place to convey information on quality problems occurring in the market via automakers and swiftly pass it on
to the relevant internal divisions. Any defective product is recalled
and analyzed, causes immediately investigated, and measurestaken to prevent a recurrence of the problem. When it is diﬃcult
to pinpoint the cause of aproblem and develop solutions internally, we team up
with automakers and conduct tests using test vehicles,
cooperating on faster andsurer ways to prevent recurActivities for improving trust in the market
rence of such problems.

Since 2012 we have conducted a program of quality assurance declarations with thetwin aims of developing quality-conscious personnel who minimize mistakes and processes that avoid production or passage of defective parts. Speciﬁcally, section heads
at production sites conduct independent personnel and process development, while
the company president checks these processes at all worksites. Superior programs arethen developed across the entire company. This has resulted in greater attention toquality and spurred further improvements, with all leaders completing assurance declarations by 2013. We are working hard to continue and spread this program to provide greater assurance to our customers.

VOICE
Quality Assurance
Division

Hiroki Yamashita

Customer praise for TG as a superior supplier
Our products are delivered to automakers around the world,
supporting the basic performance of their vehicles. Automak-

ers commend their best suppliers each year, and in 2013
Toyoda Gosei again received many of these honors.

■ Awards for quality in FY2013
Award

Recipient company

Awarding company

Excellent Award - Quality Performance

Toyoda Gosei Automotive Sealing Mexico S.A. de C.V.

Toyota Engineering & Manufacturing
North America

Supplier Excellence 2013

TG Missouri Corporation

Yamaha Motor Corporation, USA.

Achievement in Quality Management

Toyoda Gosei South Africa (Pty) Ltd.

Toyota South Africa Motors（Pty）Ltd.

Best Quality Award

Tianjin Toyoda Gosei Co., Ltd.

Changan Suzuki Automobile Co., Ltd.

Market 5-Year 50% Reduction Award

Fong Yue Co., Ltd.

Kuozui Motors, Ltd.

Quality

TG Kirloskar Automotive Pvt. Ltd.

Toyota Kirloskar Motor Private Ltd.

In Recognition of the Outstanding
Performance and Support

P. T. Toyoda Gosei Safety Systems Indonesia

P.T. Hino Motors Manufacturing Indonesia

Zero PPM Quality Achievement

P. T. Toyoda Gosei Safety Systems Indonesia

Krama Yudha Tiga Berlian Motors

TO
OPPI ICCSS

Auto Shanghai 2013

First showing, with aim of improving brandrecognition and customer ties in China
Aiming to increase sales and brand recognition in China,
the world s biggest market, we made our ﬁrst appearance
at Auto Shanghai at the Shanghai New International Expo
Center April 20-29, 2013. With around 2,000 car and partmanufacturers from around the world, Auto Shanghai is anenormous motor show that draws over 800,000 visitors.

19

TOYODA GOSEI REPORT 2014

TG is a global supplier in the polymer ﬁeld, mainly inrubber and plastics, and we focused on products that help
to protect the environment and enhance safety and comfort with the theme Toyoda Gosei ̶ delighting customers
around the world. Attendance by general visitors andnumerous VIPs and company executives means thenews about our technological capabilities andbusiness reached a wide
audience.

TOPICSTokyo Motor Show 2013
Business Reports

TG was an exhibitor at the Tokyo Motor Show held
November 23 to December 1, 2013 at Tokyo Big Sight.
Our theme for this show was One team, One TG: Rubber
and Plastic Polymer Technologies to Help Build Safe, Comfortable, Environmentally-Friendly Cars. Displays toexhibit safety and environmental technologies included awire mockup demo vehicle equipped with various typesof airbags, an airbag simulator that visitors could try out,
and master-crafted radiator grilles to show our plating,coating, and other decorative technologies. Our booth
was ideally located near the car manufacturers booths,
which served to attract numerous visitors to our displays.
With the ﬁrst auto show press brieﬁng by our company spresident, coverage by Japanese and foreign media networks, and other publicity eﬀorts, we were able to communicate our message to an extensive audience.

Management Reports

Wire mockup is ﬁtted withairbags and pop-up hoodactuator to protect passengers and pedestrians.

ComfortMilliwave radarsystem-compatible emblem
Specialized emblem is transparent to milliwave radar. Superior
design makes full use of ourdecorative technologies.

Airbag simulator

Elegant large radiator grilles

Simulating the experience ofan airbag inﬂating, this unit
was a hit that constantly drewhuge crowds.

Showcasing our plastic molding, metal plating, and otherdecorative technologies, theseoversize radiator grille designs
appeal to many users tastes.

Financial Reports

Comfort

SafetyEnvironment
Corporate Data

FutureEnvironment

Environmental Reports

360º full-coverage airbag

Social Reports

SafetyFutureDoor weatherstrip,
opening trim, glass run

Plastic fuel ﬁller
pipe

A rethinking of methods(rubber foam molding) andmaterials resulted in reduced
weight in a variety of weatherstrip products.

Replacing metal withplastic reduces weightby over 1kg.

Interactive smart steering wheel
This conceptual model ofthe steering wheel, a criticalinterface between driver andvehicle, includes functions
for greater safety, convenience, and comfort.

TOYODA GOSEI REPORT 201420

Employee Relations

With policies based on respect for humanity and safety,
we aim to create healthy and secure workplaces

A global workforce of employees who can think and act independently
Toyoda Gosei s vision is to develop a global workforce anddemonstrate our combined strengths, for which we areaiming to enhance the workplace and spur employee initiative through mutual respect and skills improvement. Young
employees with the potential to handle international assignments are enrolled in foreign language training, and throughone-year overseas internships (on-loan system for training)and other work with national staﬀ at overseas sites, we
systematically develop workers who can act at the global
level in the future.

■ Human Resources Systems
Internal group education
by position/function(problem resolution,
management)
Appointment of global
personnel and young,dynamic managers andexecutives (for personnel
in their 30s and older)

On-the-Job
Training
(OJT)

Group
Education

Promotion

OJT is the basis of personnel
development, with managers
developing employees on the
ﬂoor

Self-InitiatedInterview
SystemPersonal
Growth■ Key HR Concepts● Train highly specialized professionals with a broad perspective● Recruit a diverse global workforce to respond better to local issues● Have employees show mutual support and teamwork acrossregional, work boundaries

Planned rotation of
personnel through diﬀerent
job assignments to foster andactivate development(career paths, skill diversity)

Evaluation and
Handling

Rotation

Superiors and subordinates
discuss challenges toprofessional and personal
growthRational, understandable
evaluation and merit system
based on skills and performance◆ Human resource development with solid education programs
veying the knowledge and skills they have accumulated on
the job, experienced employees help
Total participants inother employees acquire practical
Language Skills
knowledge and skills applicable to
Cultivation Program:actual work duties. Going forward, we
will continue honing these programs forcultivating skilled personnel.

280■ Training Structure
Position/
title

Basic technicaltraining

Type of training

Overseas-related
training

Div. leaders & Div. leaders & assist. div.
assist. div. leaders leader training

Assist.
managers

Management training forassistant managers

Generalemployees

Level 4 problem resolution follow-up training
Training for 3rd year employees
Mid-career leader training programNew
employees

Training for new employees
English training for new employees◆ Global human resources development

21

As locally-based Toyoda Gosei, our business throughoutsion leader candidates fromthe world requires us to contribute to the economic andChina. We also started ansocial well-being of each country and community we work inintra-company transferee

and to localize through our overseas aﬃliates.

(ICT) program, transferringWith the aim of localizing administration, we develop our

employees from overseas

global human resources through integration with national

locations to our company

staﬀ. In FY2013, we conducted a Global Executives Seminaron internships. Currently,

for 17 executive trainees from North America, Europe, Asia

one employee from India,

and Oceania, and Middle Management Training for 17 divi-

one from China, and two

TOYODA GOSEI REPORT 2014

Global Executives Seminar

Language training

Management training for TL

Training for transferred/local employees

TL

Management training for GL/managers
Newly appointed GL policy development training

Training system for skills

GL/
Managers

Training system for engineers

Toyoda Gosei is committed to education programs todevelop personnel capable of responding eﬀectively to internationalization and formulating and resolving problems.
Since FY2012, we have been proactive in training employees
who incorporate quality control in all their work. We moved
up schedules for our younger employees basic problemsolving education̶from their ﬁfth or sixth year after joining
the company to the third year̶enabling them to apply
problem-solving approaches at an early stage. Our mechanism allows employees to interact with superiors in practicalproblem-solving situations encountered in work, with superiors providing proper on-the-job training.
We also stress language education for new and younger
employees. From informal acceptance by the company tooﬃcial employment, new employees practice e-learning for
personal development and gain motivation to learn English
after joining our company through intensive training withnative English-speaking instructors. Our global employees
also start on development from an earlier age. With augmented content in the Language Skills Cultivation Programfor Younger Employees, launched in FY2011 for employees
in their 20s and 30s, a total of 280 employees in FY2013
learned English skills that directly relate to their work.
With continuous updating of human resources development,
since FY2009 we have shifted from the use of outside lecturers to in-house lecturers, except in specialized ﬁelds. Con-

from Thailand have been transferred, and we plan to expand■ Training for global human resource development

this program. We also promote other programs, such as
accepting ten local employees from Thailand and Vietnam
via the Overseas Human Resources andIndustry Development Association(HIDA) with practical on-the-job train-

Participants in global humanresources development andtraining programs

42

Number of countries participating Number of attendees

Global Executives Seminar

9

11

Middle Management Training

1 (China)

17

HIDA

2

10

ICT

3

4

Employment■ Number of employees by region (consolidated)(FY2013)
Europe/Africa:
1,221 (3.8%)

North America:
8,023 (25.3%)■ Workforce composition (non-consolidated)
2012

2013

Female

Total

Male

FemaleTotal

No. of employees

6,068

695

*6,763

5,975

688*6,663

Average age

41.4 yo36.4 yo 40.9 yo 42.0 yo 37.1 yo 41.5 yo

Average lengthof employment

17.4 yr11.9 yr

16.8 yr18.0 yr12.7 yr17.5 yr

Number of
employees
31,672
Asia and Oceania:
13,762 employees(43.5%)

Japan:
8,666 employees(27.4%)

Social Reports

Male

Management Reports

We promote fair and impartial employment and development and respect for diversity to ensure stable employment,with systems and environments where employees ﬁnd it
easy to work.

Business Reports

ing over one to six months.

Workshop name

*Total no. of employees does not include 407 employees dispatched overseas

We conduct an annual Workplace Management Survey tostudy employees motivation to work and their attitudes
regarding managers and the workplace. The aim is to understand problems in the workplace, improve the work climate,
and utilize the ﬁndings in our human resources development.

Based on the results, we advance planned measures tomake improvements to each division s weaknesses. Improvements incorporate good measures found both within andoutside the company and provide individual support tothose dealing with many problems.

have educational activities to create working environmentsthat make the support system easy to use. We aim to continue providing such support to employees with development of robust, eﬀective programs.
This plan was enacted in April 2011 and we were recognized a second time in July 2012 by the Ministry of Health,
Labor and Welfare as a company actively working to support the development of the next generation with actionplans based on work-life balance. We are making further
eﬀorts based on current action plans, mainly focusing on
activities to understand the workplace.

TG Family Day(company tour for employees families)

Kurumi Next-Generation Nurturing
Support certification markHoliday child care

Corporate Data

We strive to create a constantly improving system thatplaces priority on work-life balance, encouraging independence and enabling all employees to choose their own way
of working. We also provide support for our employees sothey can work with greater motivation and peace of mind.
We responded to our employees needs in FY2013 with
programs and events including Child-Rearing Day, Networking Event for Working Mothers, TG Family Day, and Holiday
In-House Childcare. Of particular note is the improved support in balancing nursing care and work, with oﬀerings likenursing care support workshops and guidebooks. We also

Financial Reports

Support for a stable work-life balance

Environmental Reports

Workplace management survey

Guidebook for nursing care support

TOYODA GOSEI REPORT 201422

Diversity
Toyoda Gosei is committed to fostering a corporate culturethat utilizes the diversity of our employees and enables themto make full use of their individual capabilities, without

regard to race, nationality, gender, or age. We have alsoestablished a system to enable workers of retirement age orwith disabilities to maintain stable employment.

◆ Developing diverse human resources
In FY2010, we set up a specialized organization to promote
workplace diversity and use of diversiﬁed human resources,
with a particular focus on facilitating the utilization of
women. Focusing on management-level positions, we holdworkshops to raise awareness and change attitudes about
women in the workplace with the aim of making management more conscious of company policies and the signiﬁcance of diversity. We also provide women with venues forconsidering and cultivating their work style and future direction.
We surveyed female employees and their supervisors to
study issues such as women s perceptions of their jobs, howsupervisors cultivate and promote female subordinates, performance evaluations, and the pace of pay raises and promotions. With these issues identiﬁed, we formulated athree-year development plan for utilizing women employees and in FY2013
held our ﬁrst Career Design Forum for
TG Women. We will continue to move
forward with other speciﬁc measures.

Management training to advanceutilization of women

Career Design
Forums for TG
Women oﬀered

Career Design Forum for TG Women◆ Workplaces that welcome people with disabilities
Toyoda Gosei actively employs persons with disabilities. We
aimed to exceed the legally mandated rate of 2.0%, and in2013 hired 113 persons with disabilities (as of February 1,2014) to achieve this target with a rate of 2.1%.
The Committee for Employment of People with Disabilities
plays a central role in hiring, assignments, education, establishing stable positions, and awareness. We place particularfocus on helping persons with disabilities establish stable
positions, improving the work environment
Employment rate forbased on periodic interviews with these
employees. We are pioneers in matching people with disabilities:
disabled persons with work suited to theirabilities, with systems to guide themthrough the hiring to assignment stages.

2.1％

With our special subsidiary TG Welfare, the Toyoda Gosei
Group is taking further steps to promote employment ofpeople with disabilities.
■ Changes in employment rate for people with disabilities
（％）
3

2.1％
2

Legally mandated
rate: 2.0％

Legally mandated
rate: 1.8％
1

'03

'04

'05

'06

'07

'08

'09

'10

'11

'12

'13（ﬁscal year）◆ System for stable work after retirement
Established in April 2006, our Retiree Re-Employment Systemenables employees to continue working with peace of mind
even after retirement.
Since FY2013, post-retirement employees have been
allowed to reduce the days or hours worked per week for abetter work-life balance and greater diversity in working
styles.

■ Trend in Number of Reemployed Retirees

200

0

VOICE
Human Resources
Development Division

Akinori Takagi

23

TOYODA GOSEI REPORT 2014

No. of people reemployed（Persons）
400

'09

'10

'11

'12

'13

'14

Our approach in promoting diversity relies on connecting the company s growth andwell-being to that of the individual, for a sustainable business environment that meets
our needs and adapts to change by incorporating numerous ways of thinking, value
systems, and other individual characteristics, without regard to nationality, gender, age,or other such factors.
In FY2013 we held our ﬁrst Career Design Forum for TG Women with the aim of having
women think seriously about their own futures in ﬁelds that are trying to attract more
women. This creates opportunities to move towards the future with increased awareness through exchanges with women in and outside the company.
We will continue to create an environment and climate where we make use of every
individual s characteristics and where employees can work with vigor and purpose.

Mental and physical health maintenance■ Health Education System

Supervisors

Sectionleaders

General employees

To promote eﬃcient workplace operations and smooth communication, we regularly held mental health education sessions in FY2013 for employees at every level, from newly
appointed management directors, division leaders, and assis-

tant division leaders to section chiefs and group leaders.
Qualiﬁed clinical nurses provided comprehensive counselingservices at each location. That fewer individuals are coming
in for consultations is proof of the program s eﬀectiveness.

A program launched in FY2011 continues to provide
employees aged 45 with practical education on eating
habits, various forms of exercise, alcohol consumption, andother topics. Employees are also urged to wash their hands
and gargle to prevent the spread of seasonal and newstrains of inﬂuenza and other infectious diseases.

Zero accidents
lost work time, minor accidents continued apace. Activities
such as notifying employees of past accidents, our Safety KY
Dojo hazard awareness training, and safety awareness activities and safety inspections help create a safe and healthy
work environment for all Toyoda Group employees.

■ Main Activities in FY2013■ Trends in rate of work accidents(rate of injuries resulting in lost work time)

Safety-Conscious Personnel

1● Informing employees of past accidents to prevent reoccurrence

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

1.5

Whole manufacturing industry● Creating safety awareness through comprehensive safety education

2（1）Safety education for management

1.00

1.0

（2）Safety KY Dojo

Transportation equipment industry（3）Safety awareness activities for individual workplaceｓ

0.42

0.5

3

Toyoda Gosei● Application of OSHMS in safety activities and improving management

Workplace Safety

4● Ensuring safety around molds and cranes, where serious accidents occur

5● Complete plant/site inspections, with no area omitted

6● Inspection and correction of visibly aging equipment/facilities

7● Strengthening measures to ensure safety in outside projects

Corporate Data

Activities

Financial Reports

Under the leadership of the company president, who also acts
as the company s general health and safety manager, we conduct Safe Personnel and Safe Workplace programs and otheractivities aimed at total accident prevention. Although in
FY2013 we had zero serious accidents and injuries resulting inEnvironmental Reports

Since FY2007 we have held our Good Life Seminar 35 for
employees aged 35, providing education on day-to-day
health management and preventing lifestyle-related diseases.
In FY2010 we launched a smoking cessation program toprovide support to employees trying to quit smoking. We
have removed all cigarette vending machines from company
premises and discontinued sales of cigarettes at company
stores.

Social Reports◆ Health management

Management Reports◆ Continuing mental health education for management directors

Business Reports

L
TL & assist.
managers

Mental healtheducation
for management
directors

Self-care education

G

Mental healthleader education

Mental health(follow-up) education

Managers（physical health education at 35 years）

Div. leaders &assist. div. leaders• Good life seminar 35

General managers• Health education at 45 years

Plant managers

Physical healthmanager education

Our employee health programs include various measures toensure and improve employee health, focusing mainly on
maintaining mental and physical health.

0

0.00
'03

'04

'05

'06

'07

'08

'09

'10

'11

'12

'13（ﬁscal year）

TOYODA GOSEI REPORT 201424

◆ Safety KY Dojo/Hazard Awareness Academy
The company established the Safety KY Dojo (K is kiken, orrisk, and Y is yochi, or prediction ) in October 2013. Its
purpose is to raise employees safety awareness and abilities by fostering sensitivity to risk and problem resolution
skills, helping employees to detect risks in advance and takemeasures to prevent injuries. Cases of past accidents andunsafe conduct that may be anticipated in daily operations
are reproduced with mannequins, and participants learncompany safety rules through training to discover risks andsafety problems.

Safety KY Dojo

VOICE
Safety and Health
Promotion Division

Chiyori Yamamoto

We ve developed a variety of activities, mainly derived from OSHMS [Occupational Safety
and Health Management Systems], to ensure all TG Group employees avoid injury andhead home after work in excellent condition. While there are fewer accidents each year,
we haven t reduced the number to zero. We ve also seen a rise in the number ofaccidents while an individual is walking and other accidents caused by carelessness, so
we are placing greater focus on increasing safety awareness and skill. We will continue
to promote health and safety programs throughout the entire Toyoda Gosei Group.

Partnering with labor unions for a better workplace
Based upon our fundamental philosophy of mutual trust andshared responsibility in labor-management relations, we holddiscussions with the labor union on wages, work environment and hours, and other working conditions at regularly
held meetings of the Central Labor-Management Council,
Divisional Labor-Management Council, and other groups. Particularly at the Divisional Labor-Management Council, division chiefs themselves directly discuss key workplace issues
with union members with the aim of creating a more pleasant working environment.

Central Labor-Management Council

25

TOYODA GOSEI REPORT 2014

Shareholder Relations

We strive to maximize understanding of Toyoda Gosei s achievements throughincreased corporate value and proactive disclosure.

Our automotive parts business for the current term enjoyedrecord revenues due to increases in vehicle production,
aggressive expansion of sales to non-Japanese automakers,■ Change in Dividends
56.0(yen)60

46.0

and correction of the excessively strong yen, resulting inoverall sales of 689.4 billion yen, a 15.0% increase over the

19.0

26.0

Thanks to the increased sales of automotive parts as well as
rationalization measures, including a push by the entire
Group to reduce cost prices, we achieved increases in bothordinary proﬁt and net
income for the current term,
業

年度

4月1日から翌年の3月31日まで

with ordinary proﬁt increasing
時

株

主

総

会

6月

配当金支払株主確定日

3月31日
なお、中間配当を実施するときの中間配当金支払株主確定日は9月30日であります。

証

7282

公

上

券

コ

告

場

ー

ド

法

電子公告（当社ホームページ http：//www.toyoda-gosei.co.jp/ に掲載いたします。）

引所

東京証券取引所および名古屋証券取引所

方

取

'05

'06

'07

'08

'09

'10

'11

'13 (ﬁscal year)'12■ Distribution Status According to Shareholder

株主メモ

事
定

0

株主のみなさまへ

Financial product traders Individuals and others

第91期中間業績のご報告
2013年4月1日から2013年9月30日まで

24.7% to 45.8 billion yen andForeign investors, etc.

Financial institutions 1.01

1. 株主様の住所変更､単元未満株式の買取請求その他各種お手続きにつきましては､原則､口座を開設されている証券会社で承ることとなっておりますので､口座を開設されている証券会社にお問合せください｡三菱UFJ信託銀行株式会社ではお取扱いできませんので､ご注意ください｡

2. 特別口座に記録された株式に関する各種お手続きにつきましては､三菱UFJ信託銀行株式会社にお問合せください｡なお､三菱UFJ信託銀行株式会社の全国各支店でもお取次ぎいたします｡

net income increasing 22.3%
3. 未受領の配当金につきましては､三菱UFJ信託銀行株式会社の本店および全国各支店でお支払いいたします｡

Treasury stocks

0.42○証券会社の口座に記録された株式お手続き､ご照会等の内容

お問合せ先

三菱UFJ信託銀行株式会社 証券代行部〒137-8081 東京都江東区東砂七丁目10番11号
TEL. 0120-232-711（通話料無料）

株主名簿管理人･ 上記以外のお手続き､ご照会等

口座を開設されている証券会社にお問合せください｡

to 26.2 billion yen.
○特別口座に記録された株式お手続き､ご照会等の内容･ 郵送物等の発送と返戻に関するご照会･ 支払期間経過後の配当金に関するご照会･ 株式事務に関する一般的なお問合せ

株主名簿管理人･ 特別口座から証券会社の口座への振替請求･ 単元未満株式の買取請求･ 住所､氏名等のご変更･ 特別口座の残高照会･ 配当金の受領方法の指定

特別口座の口座管理機関お問合せ先三菱UFJ信託銀行株式会社 証券代行部〒137-8081 東京都江東区東砂七丁目10番11号
TEL. 0120-232-711（通話料無料）［手続き書類のご請求方法］･ 音声自動応答電話によるご請求
0120-244-479（通話料無料）･ インターネットによるダウンロード
http：//www.tr.mufg.jp/daikou/

Due to these factors, we
decided t o d i s t r i b u t e a n

31 March,
2014

24.30

48.67

17.02

8.58

31 March,
2013

25.39

49.16

15.96

8.39

〔単元未満株式の買取制度について〕

当社の株式は100株が1単元となっており､単元未満株式（100株未満）につきましては､市場で売買できません｡単元未満株式をご所有の株主様は､引き続き,ご所有いただくことのほか､当社に対して買取請求（当社への売却）をしていただくことも可能です｡お手続きの詳細につきましては､口座を開設されている証券
会社または特別口座の口座管理機関である三菱UFJ信託銀行株式会社にお問合せください｡.

annual dividend from surplus〒４５２-８５６４ 愛知県清須市春日長畑1番地
TEL.０５２-４００-１０５５(代表) ホームページ http://www.toyoda-gosei.co.jp/

of 56 yen per share.

この印刷物を回収・リサイクルに出しましょう。

0.64

Report on Business Results

20

0.46
40

60

80

（％）
100

Disclosure
astically provide information in individual investor meet-

regularly issuing reports via our website and with our IR

ings and to all of our many investors in Japan and over-tools (earnings summary, data for ﬁnancial brieﬁngs, etc.),

seas. As an open and transparent corporation, we strive

holding ﬁnancial brieﬁngs, and participating in IR events.

to ensure correct evaluation of our corporate value bySpeciﬁc steps include biannual earnings presentations forarranging individual plant tours for institutional investors

institutional investors and securities analysts, with materi-and security analysts, publicizing our technical strengths,

als from these meetings and other relevant ﬁnancial infor-and participating in investor relations events.

mation published on our website. In addition, we enthusi-

Targeted persons

IR activities

Dom. instit. investors
Securities analysts

Individual discussions,ﬁnancial brieﬁngs

Overseas institutional
investors

Individual discussions,participation in IR events

Individual
shareholders
and investors

Corporate Data

■ Main IR Activities

Plant tours after annual
shareholders meeting
Report on BusinessResults issued

Toyoda Gosei
Report issued
Dissemination ofﬁnancial and IR
information on website

Financial Reports

Toyoda Gosei discloses information in a proper manner,

Environmental Reports

0Social Reports

Financial product traders〔株式に関するお手続きについて〕･ 郵送物等の発送と返戻に関するご照会･ 支払期間経過後の配当金に関するご照会･ 株式事務に関する一般的なお問合せManagement Reports

previous term.

36.0 36.0 36.0 36.0
30

44.0

Business Reports

Business results and proﬁts

Presentation of financial results

TOYODA GOSEI REPORT 201426

Supplier Relations

We will develop and grow together with our suppliers, based on strong cooperative ties.

Basic Procurement Policy
Our basic procurement policy is to achieve an optimal global
procurement system with a procurement framework that
beneﬁts TG, swiftly and accurately gauging changes inprocurement conditions and customer and competitor attitudes,

ensuring compliance, and conducting business in a fair andopen manner. All of this enables us to produce competitive
products.
Based on the idea that it is our suppliers support who ourcompany, we employ the principle of “genchi, genbutsu,
genjitsu” (go-and-see; activities based on the actual situation) tostrengthen the foundations of our business with our suppliers.

Procurement policy brieﬁngs
We hold a procurement policy brieﬁng every April to give our
suppliers a clear understanding of our procurement policy forthe coming ﬁscal year, with a description of our current business environment and our direction moving forward.
These brieﬁngs are attended by 170 suppliers of products,
machining processes, materials, facilities, and molds. In addition to the above, procurement policy topics also include
safety, quality, quantities, costs, technology, global expansion,and CSR. We also give awards
each year to show our appreciation to suppliers who havemade noteworthy contributions in their ﬁelds, while
encouraging all participating
suppliers to continue making
progress.

Procurement policy briefing

Collaboration with suppliers
Four times a year, we hold a procurement liaison meetingwith about 100 participating suppliers. The meeting focuseson ongoing themes such as developments in the area of production information, quality control, compliance and safety

activities, anti-earthquake measures, conﬁdentiality, andharmful substances management. Various educational sessions and lectures on cultivation of human resources further
deepen our relationships with our suppliers.

Quality, safety/ﬁre prevention, compliance, and other initiatives
We carry out programs to eliminate all major quality problems through standardized procedures, prevent shipment ofdefective product, and improve competitiveness by lowering
cost price. We also urge supplier participation in the designof metal molds and products so that we may grow anddevelop together. Product quality receives special attention,
and we regularly hold quality liaison meetings and provide
our suppliers with information they need to improve quality.

Our ﬁre prevention, disaster preparedness, and other safety
activities include visits to areas aﬀected in the Great East
Japan Earthquake and requests to our suppliers to establish
emergency response systems based on information obtained
through reciprocal company observation tours. We also
discuss management issues with suppliers and actively work
to secure proﬁts through cost price reductions.

Green procurement
We continue to expand environmental activities based on
our company s Green Procurement Guidelines (3rd Edition).
The guidelines comprise three components: establishingenvironmental management systems; improving regulatorycompliance and environmental performance; and harmful
substances management. We have achieved good results inenvironmental management systems and regulatorycompliance/environmental performance by requesting that
suppliers take steps to reduce environmental impacts, aswell as with changes at the organization and system levels

VOICE

Purchasing Division

Yuki Miura

27

TOYODA GOSEI REPORT 2014

and programs to improve production, ISO 14001 certiﬁcation, and measures to conserve energy and reduce waste.
Measures to control harmful substances include reportingchemicals contained in products or materials we order fromsuppliers so that we may comply with increasing regulations
around the world. We also coordinate with suppliers in complying with European ELV (end-of-life vehicle) and REACH(Registration, Evaluation, Authorization and Restriction ofChemicals) regulations and regulations on managing volatileorganic compounds.

I am in frequent contact with our suppliers in my work, and the thought that I am a representative of my company brings a certain amount of tension to the work.
As one responsible for furnishing our suppliers with information at procurement policy
brieﬁngs, procurement liaison meetings, and other venues, I concentrate on providing
information that is instructive and beneﬁcial to the suppliers. I will continue to ask suppliers for their opinions and strive to provide information with consideration of their perspective.

Involvement with Local Communities
As a good corporate citizen,
we work to improve our local communities through activities with local residents.

with local communities through volunteer and othercommunity-oriented activities.
In FY2013, a total of more than 22,000 people participatedin volunteer activities in Japan, about twice the number in
FY2012. This is the second year of our Group-wide social
contribution activities, with about 7,000 employees volunteering globally, expanding volunteer activities and strengthening ties with our communities.
To support reconstruction after the Great East Japan Earthquake, we donated security lights utilizing the features of our
LED technology for well-lit towns.

Wheelchair Doctors

This volunteer group of employees
visits welfare facilities for the elderly
and hospitals in the community every
month to repair, adjust or clean morethan 500 wheelchairs a year. This program has continued since 1996.

Selling goods produced by
vocational training facilities

To support the independence ofpeople who attend vocational facilities
for the disabled, we provide places tosell hand-made bread and cookies atseven of our facilities every month. Anyrevenue earned is used to help ﬁnancethe operation of vocational facilities.

Financial Reports

Cafeterias at eight business locations
introduced charity meals that raise
10 yen per meal for charity. Using thecollected funds, wheelchairs and rehabilitation aides w e r e p u r c h a s e d a n d
donated to three welfare facilities in
the community.

Environmental Reports

Charity Meals

Social Reports

Social Welfare

Management Reports

Toyoda Gosei strives to create better local communities
though active involvement. In Japan our eﬀorts have focusedon traﬃc safety educational activities as an automotive parts
manufacturer, as well as the four areas of support for thevulnerable, youth development, environmental protection,and community crime prevention. To motivate employees
and encourage them to become involved in a wider range ofvolunteer activities, we have introduced a volunteer award
system and social contribution education to raise awareness.
Although the approaches of TG Group companies in various
countries diﬀer, we all strive to create close relationships

Business Reports

Growing volunteer activities

Environmental Protection
Corporate Data

Tree-planting project

To enhance employees environmental
awareness and promote communication within the company, we have conducted tree-planting activities at ourplants since 2009. In FY2013 weplanted 45,000 trees at three locations
around the world.

Cutting-edge green factoryWith the Heiwacho Plant as a model,
we have been conducting ecosystemsurveys, cleanup activities, eco-learningand other activities with local communities since 2011 to preserve our environment.

Community cleanups

In addition to routine cleaning at eachfacility, we conduct community cleanups twice a year with participation of
more than 2,500 people including
employees, their families, and local
students.

TOYODA GOSEI REPORT 201428

Youth Development

Ichinomiya Boys and Girls Invention ClubWith the aim of providing a place forchildren to enjoy making things and togrow creatively, we have given full support to this club since its establishment.
In 2013, 125 children participated in
the club s activities.

Sports support activities

Neighborhood safety patrols

Donation of LED security lights

Traffic safety patrols

Athletes from our volleyball, handballand basketball clubs provide instruction
to local elementary and junior highschool children for their healthy growthand development. Many of these activities include people with disabilities.

We have launched a program of neighborhood safety patrols in which
employees volunteer to patrol key
crime-prevention areas, such as aroundelementary and junior high schools andtrain stations.

Community Safety

Blue light crime prevention patrol

In July 2012 we began blue lightpatrols in cars equipped with blue
lights. We have since expanded thearea of these activities three-fold, andstarted crime-prevention activities withincreased mobility.

Since 2009 we have been donating our
LED security lighting to communities tohelp them create brighter and safer
cities without crime. By FY2013, we
had donated to Kiyosu, Inazawa, andIchinomiya cities.

Community Safety

Traffic safety presentations

About 50 employees visit 14 nurseries
and kindergartens around our facilities
to teach children the importance oftraﬃc safety using picture-card shows
and videos. In FY2013 we marked the28th anniversary of this activity.

29

TOYODA GOSEI REPORT 2014

We are involved in educational traﬃcsafety promotion activities aimed at
reducing traﬃc accidents and protecting vulnerable road users. On the 10th,
20th and 30th days of each month,employee volunteers stand along roads
near each facility to call for traﬃc safety
in the community.

Donations to those in needPatrol to eradicate drunk driving

Since 2008 our Morimachi Plant has been
conducting activities to prevent drunk
driving by patrolling community areas incooperation with traﬃc safety-relatedorganizations. Thes patrols to eradicate
drunk driving continued in FY2013.

Toys for disadvantaged children

TG Automotive Sealing Mexico
donated 450 toys to disadvantaged
children in three areas near the company. Plastic bottles and cans werecollected in the company and sold formoney to buy the toys.

Donations of LED streetlights

We donated LED security lamps andlights using TG s high eﬃciency LED
light sources to aﬀected areas, basedon their needs, for well-lit and safe
streets.

Sales of Northeast Japan specialty products

To help employees understand thatthey could support reconstruction even
without going to the aﬀected areas, we
held Tohoku product exhibitions ofconfectionaries and foods popular in
the Tohoku region at 13 company
cafeterias in Japan.

Social Reports

TG Missouri Corporation in the USA
collected daily use articles (body soap,
perfumes, etc.) from employees for
donation to local elderly nursing
homes.

Management Reports

Presents to a nursing home

East Japan Reconstruction Support

Business Reports

Donations to those in need

Other Activities
Environmental Reports

VOICE
GeneralAdministration Division

Chikako Yamada

Volunteer markWe give awards to employees who
have conducted outstanding volunteer
activities. This increases our employees motivation to volunteer, and provides an incentive to widen the circle ofvolunteers.

Corporate Data

We hold events for exchange between
new employees and people withdisabilities, to help our employees
properly understand disabilities
through interaction, learn ways to support people with disabilities, nurture a
considerate spirit, improve their socialand cooperative skills and expand theirperspectives.

Volunteer Award System

Financial Reports

Education on social contribution
for new employees

We conduct many activities that contribute to better communities and society,including tree-planting, global social contribution activities, support for recovery
from the Great East Japan Earthquake, safety patrols, wheelchair doctor services,and the Ichinomiya Boys and Girls Invention Club. Employee understanding isessential for these activities, and we hope to increase the number of people supporting these activities so that participation is voluntary, continuous, and fun.

TOYODA GOSEI REPORT 201430

Global Environmental Protection Activities
All member companies of the Toyoda Group,
including domestic and international aﬃliates and suppliers,
undertake environmental protection activities in response to global environmental problems.

The Toyoda Gosei Group carries out a variety of activities toreduce environmental impacts over the entire lifestyle of vehicles,
based on our basic environmental policy.
These activities include environmental considerations at every
stage, from development, production, and sales activities todisposal, as well as eﬀorts to respond quickly to changing laws
and regulations and societal needs. We are also working to raise
the environmental awareness of each employee to energize these
activities. We will continue our eﬀorts to reduce environmental
impacts based on TG s Fifth Environmental Protection Plan, ouraction plan for FY2011 to FY2015.

Environmental Policy
1 Environmentally-friendly corporate activities
We are aware that all stages of our business, fromdevelopment, production, and sales activities to
end-of-life disposal, are deeply related to theenvironment. The Toyoda Gosei Group, including allinternal departments, domestic and internationalaﬃliates, and suppliers, conducts all businessactivities with concern for the environment incooperation and coordination with customers,
government authorities, and others.
2 Good corporate citizenshipAs a good corporate citizen, we participate in,support, and cooperate with environmental activities
by many 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, andsupport social contributions and volunteerism.
3 We listen to the opinions of people at all levels ofsociety while spreading information on these activities
and working to improve them.

Aiming higher

Expanded use of renewable energy
Greater use of LED lighting for high ceilings

2010
Formulation of

Activities for zero cases of
5th Environmental
non-compliance and complaint
Action Plan
Response to Europes
REACH*² regulations
Establishment of SOC*³
management for major overseas
sites, including China
Deployment of Global EMS
Total elimination ofhexavalent chromium in products

Reduced CO₂ emissions per sales
unit (consolidated global)
Reduced emissions per sales
unit (consolidated in Japan)
Reduced use of 5 gases*¹
Reduced water usage
Tree-planting at factories
Expanded LED use within company

Reduced CO₂ emissions per sales unit
(consolidated global)
Reduced emissions per sales unit
(consolidated in Japan)
Continuation of our policy of zero landﬁll waste;
zero incinerated materials

2005
Formulation of
4th Environmental
Action Plan

Reduced emissions of VOCs*4 and PRTR*5 substances
Compliance management

Founding
Environmentally-friendly
manufacturing
5% reduction in overall CO₂

1991
NicelyCommittee
establishedemissions from 1990 level
Greater material recycling
Zero landﬁll waste
TG Group activities for ISO
14001 certiﬁcation

2000
Formulation of
3rd Environmental
Action Plan

Total elimination ofchloroﬂuorocarbons (CFCs)

Treating Humans and the Earth Nicely

ISO 14001 certiﬁcation at main
1995
Japanese plants
Formulation ofEnvironmental accounting
2nd Environmental
Improved environmental
Action Plan
education
75% reduction in waste(from FY1991 levels)
Total elimination ofchlorinated solvents

1993
Formulation of
1st Environmental
Action Plan

Strengthened environmental
management system
50% reduction in waste(from FY1991 levels)
Total elimination of CFC
substitutes and trichloroethane*1 HFCs (hydroﬂuorocarbons), PFCs (perﬂuorocarbons), SF₆ (sulfur hexaﬂuoride),
CH₄ (methane), N₂O (nitrous oxide)*2 Registration, Evaluation, Authorization and Restriction of Chemicals*3 Substances of Concern*4 Volatile Organic Compounds*5 Pollutant Release and Transfer Register

Environmental enhancement organization■ Environmental organization chart

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

Chairperson: Company president

Environmental Committee

Environmental policy and key action items for the Toyoda
Gosei Group are discussed and decided by an Environmental
Committee. The Environmental Committee consists of threesubcommittees in the product, production, and quality areas.
Liaison committees and working groups from these subcommittees work in coordination to promote environmental protection and management from an expert perspective.

Production Production Environment Subcommittee［Promotes and manages technical development measures for
reduced emissions from production processes］

Liaison Committee for Environmental
Communication with Domestic Aﬃliates［Manages, guides, and supports coordinatedenvironmental eﬀorts by aﬃliates and suppliers in Japan］

Liaison Committee for Environmental
Communication with Overseas Aﬃliates

Quality
Assurance［Manages, guides, and supports coordinatedenvironmental eﬀorts by aﬃliates in other countries］

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

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

31

TOYODA GOSEI REPORT 2014

Fifth Environmental Action Plan

The Toyoda Gosei Group is midway through its Fifth Environmental Action Plan and conducts
various activities with the aim of contributing, through its products, to a low carbon,
recycling-oriented, and environmentally-friendly society.

❶ Reduction of CO2 emissions【Production】
・Replace ineﬃcient equipment; improve existing equipment
・Expand use of LED lighting for high ceilings
・Greater use of renewable energy (solar power generation)
・Greater use of insulating paint

Climate change prevention

Examples of production-related eﬀorts ・・・・・・・・・・・・・・・
・Save energy by using more compact vacuum
forming equipment built in-house
・Use of fewer pneumatic pumps in urethanesteering wheel molding process
・More compact molds

P34

FY2013 Achievements

FY2015 target

Rating［2］Global, consolidated CO2 emissions per sales unit 33% reduction from FY2003 level

［1］

69

Reduced 31% from FY2003 level○

Japan, consolidated CO2 emissions per sales unit 28% reduction from FY2003 level76［1］Reduced 24% from FY2003 level○

CO2 emissions per sales unit 26% reduction from FY2003 level76［1］Reduced 24% from FY2003 level○

119,000 tons of CO2 Reduced 1% from FY2003 level○

Toyoda Gosei

CO2 emissions

13% reduction from FY2003 level

Distribution (Scope: Delivery, in-process and procurement distribution)
・Improved transportation eﬃciency
・Improved loading eﬃciency
・Shorter distribution routes by production close to customers
・Vehicle deployment matched to production volumes

Item
Toyoda Gosei

Eﬀorts in logistics ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
・Direct delivery

FY2013 Achievements

FY2015 target

Distribution CO2 emissions per sales unit 37% reduction from FY2003 level

63

［1］

Reduced 37% from FY2003 level

P35
Social Reports

Rating［2］○Products
・Product design, materials development for weight reduction
・Development of products and materials in new areas
corresponding to new energy trends

Examples of product-related eﬀorts ・・・・・・・・・・・・・・・・・・Intercooler piping made of plastic
・Development of inflator damper (decreased weight)

P35❷ Reductions in 5 gases*

Switch from 5 gases to substitute gases

P36

・Substitutes for gases (HFC, PFC, SF6) used in magnesium
casting and LED manufacture

Item
Toyoda Gosei

FY2015 target

Emissions of 5 gases 75% reduction from FY2003 levels

FY2013 Achievements
6,000 tons of CO2

Reduced 68% from FY2003 levels

・・・・・・・・・・・・・

Rating［2］○Item

FY2013 Achievements

FY2015 target

Rating［2］［1］52Reduced 48% from FY2003 level○

Toyoda Gosei Waste volume per sales unit 50% reduction from FY2003 level

52［1］Reduced 48% from FY2003 level○Overseas affiliates Waste volume per sales unit 38% reduction from FY2003 level

64［1］Reduced 36% from FY2003 level○

Distribution (Scope: Delivery, in-process and procurement distribution)
・Slimmer packing speciﬁcations
・Greater use of returnable containers
Item

Toyoda Gosei

Eﬀorts in logistics ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
・Cleaner returnable containers

FY2013 Achievements

FY2015 target

Packing material per sales unit 70% reduction from FY2003 level28［1］ 1］

Reduced 70% from FY2003 level

P36

P37

Rating［2］○【Products】
・Product design and materials development for easy recycling

Product-related eﬀorts ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

P37❹ Reduction in water use

Reduced water use and eﬀective use of water・Reuse of waste water with a decompression-dehydration system in plating processes

P37

Item

Toyoda Gosei

FY2015 target

Water used per sales unit 30% reduction from FY2003 level

FY2013 Achievements
56［1］

Reduced 44% from FY2003 level

Corporate Data

Japan, consolidated Waste volume per sales unit 48% reduction from FY2003 levelEﬀective use of resources

Production-related eﬀorts ・・・・・・・・・・・・・・・・・・・・・・・・・・・

Financial Reports❸ Reduced emissions【Production】
・Reduced waste at source through better yields
・In-house recycling of rubber, plastics, and metals
・Continue to have zero landﬁll waste

Environmental Reports

Reduction of environmental impacts

Page

Management Reports

Item

Results of Activities in FY2013

Business Reports

Measures Implemented

Theme・・・・・・・

Rating［2］○*5 gases: Fluorocarbons, etc. [HFCs (hydroﬂuorocarbons), PFCs (perﬂuorocarbons), SF6 (sulfur hexaﬂuoride)], methane (CH4), nitrogen gases (N2O: nitrous oxide)[1] This value takes the ﬁgure in the base year as 100. [2] ○: Goal for ﬁscal year achieved, ×: Goal for ﬁscal year not achieved

TOYODA GOSEI REPORT 201432

Control/reduction of substances of concern
Greater environmental awareness, management

Environmental management

Community cooperation

Reduction of environmental impacts

Theme❺ Reduction in VOC*1 emissions

・Reduce VOC use through switch to water-based paints,
use of fewer solvents and substitute washing thinners,
and use in optimized amounts

Item

Page

Example of eﬀorts to reduce VOC emissions ・・・・・・・・・
・Greater use of water surface treatment

P38

Toyoda Gosei

FY2015 target

VOC emissions per sales unit 65% reduction from FY2003 level

Rating［2］FY2013 achievements
31［1］

69% reduction from FY2003 level○❻ Stricter management of chemicals in products
・Global management of chemical substances in products

Compliance with EU REACH regulations and ・・・・・・・・・
laws/regulations in China and other countries

P38❼ Planting native tree species on factory grounds

Examples of tree-planting at manufacturing plants ・・・・
・Native trees were planted at 3 locations globally(bringing total to about 236,980 trees planted
at 16 locations worldwide)
Examples of community eﬀorts
・Community cleanup activities・・・・・・・・・・・・・・・・・・・・・・・・Concerted global social contribution activities ・・・・・・・
Participated in environmental policies of theJapan Auto Parts Industries Association,
Japan Rubber Manufacturers Association and other organizations

P41

・Our goal is to plant 600,000 trees at about 60 locations
worldwide over 10 years (starting from 2009)
・Wider use of renewable energy (solar energy)❽ Social contribution activities❾ Contributions to environmental policy❿ Greater environmental awarenessGreater environmental awareness・Systematic environmental education ・・・・・・・・・・・・・・・・
・Environment Month and other educational activities ・・・・・・⓫ Stricter consolidated environmental management

Stricter consolidated environmental management
・Acquired ISO 14001 at sites worldwide; audited current status ・・・・・
・Environmental audits (internal and external audits) ・・・・・
・Global consolidated environmental management ・・・・・
・Initiatives of domestic aﬃliates (TGAP) ・・・・・・・・・・・・・・
・Initiatives of overseas aﬃliates ・・・・・・・・・・・・・・・・・・・・・・(Toyoda Gosei (Zhangjiagang) Plastic Parts Co., Ltd.)

External environmental audit

Thoroughgoing procurement strategy ・・・・・・・・・・・・・・・
・Held Procurement Strategy Meeting
・Spread system to control substances of concern globally⓭ Disclosure of environmental information

Environmental information disclosure
・Exhibited at the Shanghai Motor Show 2013 ・・・・・・・・
・Exhibited at the Tokyo Motor Show 2013 ・・・・・・・・・・・
・Issued Toyoda Gosei Report 2013

our business partners

in product development⓯ Greater use of LEDs in company⓰ Expansion of LED business

P28
P29
−

P39
P40
P39
P39
P40
P42
P42

On-site environmental audits in all countries⓬ Environmental activities in conjunction with

⓮ Environmental impact assessments (LCA*2)

Contributions as an environmentally-friendly LED maker

Results of Activities in FY2013

Measures Implemented

P27

P19
P20

Visualization of status of CO2 reduction and productrecycling eﬀorts−

Greater use of LEDs in company ・・・・・・・・・・・・・・・・・・・・
・Replaced ﬂuorescent lighting with LEDsat business locations in Japan・Switched high-ceiling lighting to LEDs

P43

Expansion of LED business ・・・・・・・・・・・・・・・・・・・・・・・・・・
・Expanded the LED business for lighting

P43

GOOD DESIGN AWARD
2013 RecipientLight and color modulatingbase light (NVR2ZA)

Daytime light for conferences and events Warm white light for banquets and parties*1 VOC: Volatile organic compounds*2 LCA: Life Cycle Assessment (assessment of the environmental impact [CO2 emissions, etc.] over the entire life cycle of a product from production and use to disposal)[1] This value takes the ﬁgure in the base year as 100. [2] ○: Goal for ﬁscal year achieved, ×: Goal for ﬁscal year not achieved

33

TOYODA GOSEI REPORT 2014

From the next page, prize-winning declarations in the My Eco Declaration contest are presented (see page 40 for details
on My Eco Declaration )Prevention of Climate Change
To reduce CO2 emissions, TG is working to raise productivity
and increase distribution eﬃciency, while also making vehicles
lighter and improving our ability to use diverse energy sources.

by corporations themselves (fossil fuel, natural gas, etc.)*2 Scope 2: Volume of greenhouse gases indirectly emitted(electric power, etc.)*3 Scope 3: Volume of greenhouse gases indirectly emitted

by corporations in their supply chains (production,transportation, business trips, commuting, etc.)

Cutting energy waste and reducing CO2 emissions

グローバル目標

69(31% reduction)

20

100

Target50

33%

reductionfrom FY2003
level

0

'03
(Base year)

'10

'11

'12

'13

'15

(Fiscal year)

0

Target20

100

76(24% reduction)

13.7

13.4

10

Target28%

50

reductionfrom FY2003
level

0

'10

'11

'12

'13

(Fiscal year)

'15

0

20

Target26%

76(24% reduction)
12.0

from FY2003
level

11.9
(1% reduction)

10

100

reduction
Target13%50

reduction
0

from FY2003
level

'03
(Base year)

'10

'11

'12

'13

(Fiscal year)'15

0Production

Saving energy by using more compact vacuum
forming equipment built in-house

We reduced electricity use about 30% by switching from general-purpose vacuum
forming equipment to machines we built in-house for the forming of instrument
panels and other large products. These machines have upper and lower molds,
and we were able to cut the number of hydraulic units in half by using a stationary
lower mold. Energy use was also decreased with the use of a quick heater that isturned on only when needed. The equipment is now also smaller.

ExampleProduction

30%
decrease

Previous machine

New machine

Fewer hydraulic pumps in urethane steering
wheel molding process

Power consumption was reduced 60% with the use of inverter pumps in theurethane steering wheel molding process. In the past, two hydraulic pumps wereused in this process, one to supply materials and one to open and close the mold.
Since they operate at diﬀerent times, however, we devised a single inverter pump
do both jobs, reducing the number of pumps from 37 to 17. In addition to savingenergy, the reduced noise and heat from pump operation contributes to a betterworking environment.

My Eco Declaration

Power consumption (kWh)Example*5 Electricity: 0.3707 t CO₂/MWh; heavy oil A: 2.69577 t CO₂/kL; LPG: 3.00397 t CO₂/t;city gas: 2.1570 t CO₂/1,000 Nm3 ; kerosene: 2.53155 t CO₂/kL; LNG: 2.68682 t CO₂/t;
gasoline: 2.36063 t CO₂/kL

Corporate Data

The CO2 conversion factor used in Japan*5 is the 1990 Japan Federation of Economic
Organizations (Keidanren) factor. In the conversions in this report, the CO2 reduction
effect of co-generation calculated with the thermal power mean is reflected in CO2emissions. The CO2 conversion factor used for countries other than Japan is that in the
GHF protocol (2001).

Financial Reports

Emissions (10,000 t CO2)

■ CO₂ emissions, CO₂ emissions per sales unit (index)*4 (Toyoda Gosei)

Environmental Reports'03(Base year)

Social Reports

Emissions (10,000 t CO2)

■ CO₂ emissions, CO₂ emissions per sales unit (index)*4 (Japan, consolidated)*4 CO2 emissions per sales unit (index) is a figure obtained with the 2003 level as 100

CO₂ conversion factor:

Management Reports

Emissions (10,000 t CO2)

37.6

34.0

Emissions per sales unit (index)

Power monitor

40

Emissions per sales unit (index)

Exhaust heat recovery compressor Solar panels■ CO₂ emissions, CO₂ emissions per sales unit (index)*4 (global, consolidated)
Emissions per sales unit (index)

The Toyoda Gosei Group contributes to the prevention ofclimate change by improving productivity and reducing energy
use. To limit peak power and decrease energy use, plant
waste elimination squads are establishing measures toreduce wasted energy during holidays and save energy. We
are also setting up monitors to visualize and analyze energy
use in some processes, in order to uncover and eliminate
waste. Successful energy-saving efforts at Toyoda Gosei arethen shared with our domestic and international affiliates tocontinue these improvements elsewhere.
In FY2013, we applied compressor exhaust heat to boiler
feed-water preheating and switched to LED high ceiling lights,
among other efforts. To achieve our goal of using renewableenergy equivalent to 1% of actual total purchase of peak
power by 2017, we installed solar power generation at the
Kitajima Technical Center. We also explored ways to saveenergy with genchi-genbutsu (go and see) inspections at bothour domestic and international affiliates, and began activities
that will lead to specific ideas for improvement.
In addition to Scope 1* 1 and Scope 2* 2 activities, which
require environmental management such as set forth in the
Energy Saving Law in Japan, we have been preparing for
improved accuracy in each category for Scope 3,* 3 for which
disclosure requirements are growing in recent years.

Business Reports

Production*1 Scope 1: Volume of greenhouse gases directly emitted

Examine test machine usage conditions and space, select the most appropriate machines,
and reduce operating time (Silver Award, Plastic Parts Quality Control Division)

Hydraulic pump formaterial feed 7.5 kW

Inverter hydraulicpump 5.5 W
Hydraulic pump to open/
close mold 7.5 kW

TOYODA GOSEI REPORT 201434

Example

ProductionMore compact molds

We have developed compact molds with about half the bulkof previous molds and downsized the extrusion molding
machines on which they are used, resulting in a 9% decreasein energy consumption. In the past we used large molds toprevent product defects and mold deformation or breakage.
Based on simulations using our accumulated knowledge, wehave developed better molds that eliminate parts of the moldthat do not aﬀect strength. We will continue to make smallermolds, starting with those for large products, and to share thetechnical information with our mold suppliers so that we canwork together to strengthen our competitiveness.

【Height】
About −5%
New type cross section

Conventional type cross section

Increase load efficiency and reduce the number of vehicle trips
Change routes and shorten routes with production nearcustomers
Explore means of transport with low CO₂ emissions

transport efficiency through direct delivery to customers without going through our distribution centers. We will continue
these activities while searching for new ideas to incorporate
in further reducing transportation loss.
■ CO₂ emissions and CO₂ emissions per sales unit (index)*
in distribution (Toyoda Gosei)(Scope: Delivery distribution, in-process distribution, procurement distribution)
2.0

100

63

(37% reduction)

1.34
1.0

Target37%

1.09

reduction

50

from FY2003
level

0

'03
(Base year)

'10

'11

'12

'13

'15

(Fiscal year)

0

Emissions per sales unit (index)■ Three key activities in reducing CO₂ emissions in distribution*Emissions per sales unit (index) is a ﬁgure obtained with the 2003 level as 100

Lighter vehicles and reduced CO₂ emissions

We are working at the product and technical development
stages to achieve lighter weights. In FY2013 we made concentrated efforts to reduce weights, including plastic insteadof metal intercooler piping, lighter-weight inflator dampers,

ExampleWeight About −45%

Eﬀorts to reduce transportation loss

To reduce CO₂ emissions during transportation, we focusedon improving load efficiency, shortening distribution routes,
and improving allocation of vehicles in accordance with production volumes. In Japan, we went through a major changewith the expansion of the Ichinomiya Distribution Center in
FY2012, and took that opportunity to review and improve thetransport efficiency on each of our routes. We re-examined
the transport status to customers from each of our production
locations. Where delivery volumes were large, we increased

Products

New type top view

Conventional type top view

Emissions (10,000 tons of CO2)

Logistics【Area】
About −40%

Products

and weatherstrip foaming. We also settled on key products
for our efforts, and established weight reduction targets foreach of those products. Our goal is to reduce the weight ofthese products by about 20% by FY2017.

Intercooler piping made of plastic

Weight reduction of about 40% was achieved in the intercooler piping parts that are locatedaround the engine, by making them of plastic instead of metal. For this we needed to ensure
selection of new materials that were resistant to long life coolant (LLC) and heat and maintained
the ﬂow volume of the coolant. We were able to reduce weight with no loss of function by using
a new process that enables molding of hollow piping shapes with three-dimensional curves andestablishing the best molding conditions. The use of plastic material also alleviates shape restrictions, such as pipe bending angle, giving a greater level of freedom in mounting design. We willcontinue to make these plastic pipes available to a wider range of vehicle models.

ExampleProducts

Development of lightweight inﬂator dampers

Weight reduction of about 10% was achieved by giving a damper role to the inﬂators used in airbags. Dampers have previously been used to cancel out unpleasantvibrations in steering wheels. By devising and developing a damper role for the
airbag inﬂators that are also mounted in the steering wheel, we reduced up-down
and side-to-side vibration three-fold compared with previous devices. We plan toexpand the use of this type of product in the future.

35

TOYODA GOSEI REPORT 2014

Damper role
given toairbaginflators

My Eco Declaration Use eco bags rather than plastic bags in transporting product samples (Silver Award, WS Engineering Division)

Reduction in greenhouse gases (5 gases)
Emissions (10,000 tons of CO2)■ Greenhouse gas (5 gases) emissions (CO₂ equivalents) at Toyoda Gosei
2.0

2.0

Target:

75%

1.0

0

reduction

0.6(68% reduction)'03(Base year)

'10

'11

'12

from FY2003
level'15 (Fiscal year)'13

Management Reports

Eﬀective Use of Resources

Social Reports

Together with eﬀective use of resources through reduction of waste materials and recycling plans,
we are contributing to resource recycling.

Reduction in waste materials

Waste volume
12,916t〈100%〉

Amount of landﬁll
waste 0t〈0%〉Amount of incinerated waste 10t〈0.1%〉

Waste volume (t)050

15,586'03'10(Base year)

'11

'12

'13

'15

(Fiscal year)0■ Trends in waste volume and waste volume per sales unit
(index)* (Toyoda Gosei)
Target:Waste volume (t)40,00050%52(48% reduction)

20,000 19,200

0

'03
'10
(Base year)100

reductionfrom FY2003
level

50

12,916

'11

'12

'13

'15

(Fiscal year)0■ Trends in waste volume and waste volume per sales unit
(index)* (international aﬃliates)
40,000100

33,81025,75064(36% reduction)

20,000Target:38%

50

reductionfrom FY2003
level

0

'03
'10
(Base year)

'11

'12

'13

'15

(Fiscal year)

0

Waste volume per sales unit (index)

Amount of paid recycling(payment made)8,024t〈62.1%〉

20,000from FY2003
level

Corporate Data

Amount of compensated recycling(payment received)
4,882t〈37.8%〉

52(48% reduction)

22,900100

Financial Reports

Numbers in parentheses are
the proportion of waste volume

48%

reduction

Environmental Reports

Amount of internal reuse
5,775tTarget:40,000Waste volume per sales unit (index)■ Amounts of waste generated and disposed of(results for FY2013: Toyoda Gosei)■ Trends in waste volume and waste volume per sales unit
(index)* (Japan, consolidated)
Waste volume per sales unit (index)

The Toyoda Gosei Group is working to reduce all types ofwaste through measures to reduce waste at its source andrecycling. Continuing from the previous year, in FY2013 weshared outstanding examples of waste reduction from insideand outside the company. We also made eﬀorts to reducerubber and plastic scrap and liquid waste through measures
to prevent defects and improve yield ratios. In Japan wehave advised aﬃliates on improvements through on-site visits
and worked to increase recycling. This year we also started
waste reduction activities globally. Our aim in spreadingtargets is to motivate waste reduction activities, for which
we share examples that have been successful in Japan.
Through these eﬀorts we have achieved our annual targets
for Toyoda Gosei nonconsolidated, Japan consolidated, andoverseas aﬃliates. We are continuing these activities to meet
our FY2015 targets, strengthening and enhancing eﬀorts inthe entire Toyoda Gosei Group worldwide.

Waste volume (t)Production

Business Reports

Of the ﬁve greenhouse gases other than CO₂, three are usedat Toyoda Gosei and we are working to reduce their use. A
switch to a substitute cleaning gas in LED chip production
was completed in FY2013. We also plan to complete a transition to a substitute for the shield gas used in the production of metal cores for steering wheels by the end of
FY2014. These eﬀorts have resulted in a 68% reduction ingreenhouse gases compared with FY2003.

*Waste volume per sales unit (index) is a figure obtained with the 2003 level as 100

My Eco Declaration Carry one s own water bottle to reduce the use of plastic bottles and paper cups (Bronze Award, Purchasing Division)

TOYODA GOSEI REPORT 201436

Reduction in product packaging materials
use of packaging materials per sales unit. We will continue
our eﬀorts for cleaner returnable containers, prevention ofcontamination, and reduction of packaging materials.
■ Amount of packaging materials used and amount used per sales
unit (index)* (Toyoda Gosei)(Activities covered: Delivery distribution, in-process distribution, procurement distribution)

300

100

Target:235

70%

reduction

150

28(72% reduction)from FY2003
level

50

87
0

'03
(Base year)

'10

'11

'12

'13

'15（Fiscal year）

0

Amount used per sales unit（index）

Each year we set targets for reductions in the amounts ofpackaging materials used in returnable containers during
product transport, and make improvements with the ultimate
goal of zero disposable packaging materials. In FY2013 wecontinued activities from the previous year to use covers on
returnable containers and place reusable partitions(protective material) in returnable containers. We also
installed washers in the Bisai and Morimachi Plants and acleaning machine in the Inazawa Plant to maintain thecleanliness of the containers and reduce the amount of
packaging materials to prevent contamination. We
established cleanliness criteria and encouraged each supplierto undertake its own activities to prevent contamination. The
result was a reduction of 72% compared with FY2003 in theAmount used（t）

Logistics*Amount used per sales unit (index) is a figure obtained with the 2003 level as 100

Product

Recycling technology■ Development of technology for end-of-life vehicle parts recycling

Toyoda Gosei develops and designs products with recycling
in mind, considered over the entire life cycle of the product.
We are also developing recycling technology, including thatfor the reuse of polymer materials and composite products
composed of several types of rubber and non-rubber materials. In FY2013 we continued our eﬀorts from the previous year
to use recycled rubber, for more eﬀective use of resources.
Toyoda Gosei and its domestic aﬃliates will continue to work
for a stable supply of recycled rubber.

Key items
New recycling
Use of recycledmaterials in
vehiclesProduct designfor easy recycling

Measures implemented• New recycling technology (high quality material recycling)• Composite material separation technology• Development of applications for recycled materials• End-of-life vehicle recycling technology• Materials and composition changes for easy recycling• Product design for easy dismantling※ELV：End of Life Vehicle

Reduced water use

Exampletively, introducing visualization of water use at each plant
and working to discover waste and make improvements.
■ Water use and water use per sales unit (index)* (Toyoda Gosei)
Water use（10，000 t）

300

TOYODA GOSEI REPORT 201456
(44% decrease)

184
150

152

Target:30%

50

reductionfrom FY2003
level

0

'03
(Base year)

'10

'11

'12

'13

'15 (Fiscal year)

0*Water use per sales unit (index) is a figure obtained with the 2003 level as 100

Reuse of waste water with a decompression-dehydration system
Reuse
in plating processes

Water used in the plating process at the Kita Kitakyushu Plant
has been reduced 60% by recycling. Water and solid material
in the waste water produced in the plating process are
separated in a decompression-dehydration system. This water
is then reused in processes where it will not aﬀect quality, suchas exhaust gas scrubbers or paint products. Through theseeﬀorts we have reduced eﬄuent that is treated as industrial
waste to one-seventh the amount in previous lines.

37

100

My Eco Declaration

Water used per sales unit（index）

Water is an important resource and Toyoda Gosei is trying
to use less water through reuse, discovery of waste, andimprovements. In FY2013 we began using water that was
not pure enough for production lines as make-up water forcooling towers in the Heiwacho Plant, reducing the total
amount of water used at the plant by 20,000 m3, equivalent
to about 7% of annual use. At the Haruhi Plant we havevisualized water use and are conducting point-of-use
surveys and anti-leakage measures, resulting in a reductionof 25,000 m3, or 8% of total annual water use at the plant.
Through these and similar eﬀorts we reduced water use
company-wide by 5% from the previous year. We will continue doing everything we can to save water and use it eﬀec-

Plant A

Decompression-dehydration
system
Waste
Reuse

Plant Bwater

Industrial
waste

Reduce equipment energy consumption by limiting experiments to the minimum necessary and no repeats
by using past experimental data and results predictions (Bronze Award, SS Engineering Division 1)

Control and Reduction of Environmental Substances
Stricter regulations on substances that impact the environment are being put in place worldwide.
We are working to comply appropriately with these regulations, reviewing the materials we use and ourmanufacturing processes.

We are reducing Pollutant Release and Transfer Register (PRTR)
substances and volatile organic compounds (VOCs) in our
production processes through greater use of water-based coatingsand products that can be used with coating-less glass runs. We

1,600

100

31
(69% reduction)

800

reductionfrom FY2003
level

50

0

'03
(Base year)

'10

'11

'12

'13

'15 (Fiscal year)

0

Chemical
substances
handled
770 t

Products
291t
Released
intowaterways*Emissions per sales unit (index) is a figure obtained with the 2003 level as 100

0.09t

Releasedinto
sewers0.13t

Released
AmountDisposal
into soil transferred (amountas
waste
treated)0t

154t

Greater use of water surface treatment50%
reduction

Solvent-based
coatings

Water-based
coatings

Stricter management of chemicals in products■ Regulations on chemical substances contained in products*REACH: Regulation on Registration, Evaluation, Authorization and Restriction of◆ Amendment of Chemical Substances Control Law

My Eco Declaration

2011

2012

2013

Annex II revision◆ EU REACH regulations

31 additional SVHC

200 SVHC by 2020

41 additional SVHC 54 additional SVHC 13 additional SVHC
6 substances requiring authorization/designation

North America◆ EU CLP regulations
Classiﬁcation and labeling notiﬁcation

Asia

Laws & regulations

Europe◆ EU RoHS Directive revisionJapan

Chemicals2010◆EU ELV Directive
Annex II revisionCorporate Data

European REACH* regulations and other regulations on
substances of concern are growing increasingly strict. At thesame time, more and more countries are establishing new
regulations. Automakers also have their own voluntary
regulations. This means that Toyoda Gosei, as a global
supplier, needs to closely control chemical substances. We
manage some 5,000 chemical substances in line withregulated substances in each country, automakers
voluntarily regulated substances, and our own substanceregulations. In preparation for stricter regulations in the
future, we are working together with aﬃliates in othercountries to gather information that will enable us to comply
quickly whenever regulations are revised. To respond to thedemands from each automaker, we have organized anexpert team for the control of chemical substances anddeveloped a system for integrated control of chemical
substances, which we have introduced in Japan and China.
From FY2014 we will sequentially introduce similar systemsin Thailand, North America, and other regions. Compliancewith strict regulations is essential for a company like TG that
supplies its products to automakers, and we will continue towork with our overseas aﬃliates to enhance and strengthen
our control of chemical substances.

Financial Reports

With greater use of water-based coatings applied to rubber shield products for automobile
doors and sun-roofs, we have cut the use of chemical solvents 50% from 2003 levels. The
performance demanded of shield products diﬀers depending on where they are used. Thisrequired multiple coatings, which made it diﬃcult to increase the products on whichwater-based coatings can be used. By adding components for each function to a commonbase material, however, we have been able to make water-based coatings applicable tovarious performance demands. We are also working to steadily expand these eﬀorts globallyby adopting raw materials that meet to export regulations for each country and region.

160t

Environmental Reports

ExampleRecycled
33t

Social Reports

404

Atmosphericemissions132t

VOC emissions

Emissions（t）

65%

1,024

Emissions per sales unit（index）

Target:■ Volumes and ﬂow of emitted PRTR substances(Unit: ton)

Management Reports■ VOC emissions/emissions per sales unit (index) (Toyoda Gosei)

also exchange information and share good examples among
business units, principally at the VOC Reduction Working Group,a sub-unit of the Production Environmental Subcommittee. We
will continue to reduce the use of coatings and washing solvents.

Business Reports

Reduced use in production processes of substances that impact the environment

Investigations for additional chemicals covered by action plans
Announcement of 4 substance groups being considered
Announcement of 2 substance groups being considered◆ USA EPA Action Plans

Movements for individual state regulations◆ Environmental◆ South Korean REACH regulations
Administration◆ Amendment of South Korean ELV and RoHS regulationsof New Chemical
Hazardous Chemical Safety Control Ordinance (China) ◆Substances in China

Contribute to energy reductions by preventing equipment breakdowns and not using wasteful, defective lots
(Bronze Award, Optoelectronics Manufacturing Division 1)

TOYODA GOSEI REPORT 201438

Environmental Management

The Toyoda Gosei Group is committed to thorough environmental management andreduced environmental impacts through collaborative eﬀorts by all group companies.

Environmental activities in the Toyoda Gosei GroupAll Toyoda Gosei Group companies are doing their utmost
for strong environmental management and reduced environmental impacts.
We have been collecting environmental data from domestic
aﬃliates since FY2001 and from overseas aﬃliates since

FY2003. Based on this data (CO₂ emissions, waste volumes),
we set goals and establish practices for the entire group. In
FY2013 we strengthened collaborations among group companies and carried out activities to achieve the goals set forth in
the Fifth Environmental Action Plan started in FY2011.

■ Production sites targeted for environmental activities

ToyodaGosei

Aﬃliatesin Japan■ North America● TG Missouri Corporation● TG Kentucky, LLC● TG Automotive Sealing Kentucky, LLC● TG Fluid Systems USA Corporation● Toyoda Gosei Texas, LLC● TAPEX Mexicana S.A. de C.V.
● Waterville TG Inc.
● TG Minto Corporation● Toyoda Gosei Automotive Sealing Mexico S.A de C.V.

● Haruhi Plant ● Kitakyushu Plant● Nishimizoguchi Plant ● Saga Plant
Iwate Plant ● Morimachi Plant● Heiwacho Plant● Seto Plant
Kanagawa Plant● Inazawa Plant● Bisai Plant● Fukuoka Plant● Ichiei Kogyo Co., Ltd.
● Hinode Gomu Kogyo Co., Ltd.
● Toyoda Gosei Interior
Manufacturing Co., Ltd.
● Kaiyo Gomu Co., Ltd.
● TG Opseed Co., Ltd.
● Hoshin Gosei Co., Ltd.
● TGAP Co., Ltd.

Overseas
Aﬃliates■ Asia and Oceania● Toyoda Gosei（Thailand）Co., Ltd.
● Toyoda Gosei Rubber（Thailand）Co., Ltd.
● Toyoda Gosei Haiphong Co., Ltd.
● TG Kirloskar Automotive Pvt. Ltd.
● P.T. Toyoda Gosei Safety Systems Indonesia● Toyoda Gosei Minda India Private Limited● Fong Yue Co., Ltd.
● Tai-yue Rubber Industrial Co., Ltd.
● Toyoda Gosei Australia Pty. Ltd.
● Tianjin Toyoda Gosei Co., Ltd.
● Tianjin Star Light Rubber and Plastic Co., Ltd.
● Toyoda Gosei (Zhangjiagang) Co., Ltd.
● Toyoda Gosei (Zhangjiagang) Plastic Parts Co., Ltd.
● Toyoda Gosei (Foshan) Rubber Parts Co., Ltd.
● Toyoda Gosei (Foshan) Auto Parts Co., Ltd● Fuzhou Fu-Yue Rubber & Plastic Industrial Co., Ltd.
● Toyoda Gosei (Tianjin) Precise Plastic Co., Ltd.
■ Europe and Africa● Toyoda Gosei UK Ltd.
● Toyoda Gosei Czech, s.r.o.
● Toyoda Gosei South Africa（ Pty）Ltd.

●Acquired ISO 14001 certiﬁcation New companies and main plants aim to acquire ISO 14001 within three years of starting operation

Environmental audits
Internal environmental audits at Toyoda Gosei are carried out
by audit teams composed of members from business areas
outside those being audited. We also commission reviews by
the Japan Quality Assurance Organization (JQA) to assess
whether our environmental management systems are being
properly implemented in accordance with ISO 14001 (2004version). As in previous years, in FY2013 these external
environmental audits uncovered no issues at Toyoda Gosei oraﬃliate companies. We are currently preparing to restructure
our system to comply with ISO 14001 revisions (2015 version).

Internal environmental audit

External environmental audit

Environmental education in the Toyoda Gosei GroupWe educate Toyoda Gosei Group employees on environmental issues such as the destruction of nature, environmental pollution, the impact of production activities on the environment, and observance of environmental laws. Each year

the educational materials used are revised to deepen
understanding by including case examples that emphasize
understanding of problems and implementation of practices
based on trends in laws and regulations.

■ Environmental Education System
Toyoda Gosei

Recipients

Companywide

39

Aﬃliate Companies
Japan

Overseas

Recipients

Toyoda Gosei

Aﬃliate Companies
Japan

Education for new managers

Education for environmental staﬀ

Education for those posted overseas

Education to improve internal auditorsʼ skills

Education for environmental key persons
Acquisition of environmental education qualiﬁcations

ISO 14001-related

Education to register internal auditors
Education for supervising managers

Education for new employees

Education for key environmental facility workers

Environment Month educational activities

Education for general workers

TOYODA GOSEI REPORT 2014

My Eco Declaration

Design and fabricate more compact molds to reduce energy and materials use during production(Bronze Award, IE Production Preparation Division)

Overseas

Environmental education activities
Toyoda Gosei focuses on participation-based environmental
activities to help employees develop an environmental

awareness that can be translated into action.

Company newsletter (TG Times)

Environment Month inspection tour

Inspect and maintain equipment and tools
to eliminate all air leaks. （Chusei Gomu）*Eco Declarations by the Silver and Bronze Prize winners are listed at the bottom of
pages 34 to 40.

◆ New environmental contribution award system establishedduction preparation
category was the SS Production Preparation Division,
which succeeded in using
alternative gases in place ofthe greenhouse gas sulfur
hexaﬂuoride (SF6)*. We
plan to expand the areas forinspection from FY2014.

Environmental Reports

In FY2013 Toyoda Gosei established a new Environmental
Contribution Award system to raise environmental awareness and promote environment activities. Prizes for the mostsigniﬁcant results from environmental activities are awardedin the categories of factory/oﬃce and production preparation. The winner in the factory/oﬃce category was the Bisai
Plant, which reduced its environmental impact in every
category and also established a Green Day for environmental activities involving the community. The winner in the pro-Awards for the Bisai Plant and SS ProductProduction Preparation Division

Financial Reports◆ Green curtain planting

Green curtain

Tasting party

Environmental management systems and environmental audits at overseas aﬃliates

My Eco Declaration

three group companies inNorth America, two in Europe,and all China locations to
conﬁrm the status of theirenvironmental management
systems and help each otherimprove. In FY2014 we arecontinuing these onsite
environmental audits andother steps to ensure morethorough and cooperative
operation of environmental
management systems forbetter global environmental
management.

Corporate Data

To enhance environmental awareness and reduce energy
use during the summer, the Heiwacho Plant grew green
curtains of goya (bitter gourd) vines, which covered thebuildings and reduced interior temperatures. This cut
hourly energy consumption by 3.8 kWh. The goya fruits
were then harvested in August and used in making the
Okinawan dish goya chanpuru for a tasting party.

To standardize environmental management for aﬃliates acrossthe entire Toyoda Gosei Group, we have established a Global
Environmental Management system. Toyoda Gosei s wealth oftechnologies and expertise is made available to our aﬃliates, tohelp them improve management systems, share information, andcomply with laws. Particularly in China, where environmental
regulations are becoming more stringent, we are creating amore robust environmental management system centered at theregions environmental headquarters. We are also continuing ourprogram of onsite environmental audits at overseas aﬃliates. To
keep up with the rapid globalization of our business, in FY2013
we held meetings to reaﬃrm with leaders of overseas aﬃliates
the need to manage environmental risk, comply with laws andregulations, reduce environmental impacts, and make otherenvironmental eﬀorts. We conducted environmental audits at

Social Reports

Declaration from theEco Declaration Gold
Prize winnerManagement Reports

June 2013 was Environment Month for all companies of the
Toyoda Gosei Group. Information on the environment wasshared through posters, articles in the company newsletter,and other means to heighten environmental awareness. In a
company-wide Eco Declaration campaign, employees produced
personal Eco Declarations and then evaluated their eﬀorts to
put these declarations into practice. Eight employees received
the Excellent Eco Declaration Award for the outstanding
results of their activities. Twenty employees from headquarters
and other domestic aﬃliates also toured Toyota Metal Co.,
Ltd., a company with advanced ecological practices. The
participants observed processes used in dismantling end-of-life
vehicles and recycling technologies and equipment developedby Toyota Metal. They also learned ways to recycle Toyoda
Gosei products at the end of their service life and the importanceof working for greater recycling in the company. To raise theeﬀectiveness of our programs, we also held onsite environmental
management inspections at Toyoda Gosei and domestic
aﬃliates to determine the status at each location.

Business Reports◆ Educational programs for Environment Month

Overseas onsite environmental audit

Always shut down machine power supplies for the weekend (Bronze Award, Functional Components Division)

TOYODA GOSEI REPORT 201440

Elimination of environmental non-compliance and complaints
The Toyoda Gosei Group conducts activities for zeroenvironmental violations and complaints to ensure fullcompliance with environmental regulations. In 2013, weanalyzed examples of problems at other companies andinspected similar facilities throughout the Group, taking
corrective measures where necessary to prevent suchproblems at TG. We have also established Environmental
Working Groups that conduct mutual inspections of plantand oﬃce waste processing facilities four times annually. As
a result we have had no environmental violations in any
country.

Proper disposal and storage of equipment containing PCBs
We exercise the strictest care in storing used transformers
and ﬂuorescent lamp
ballasts containing toxic
and persistent PCBs
(polychlorinated biphenyls).
Thus far, we have properly
disposed of 65 power
capacitors containing highconcentrations of PCBs. In
Removal of transformers and capacitors
FY2013 we began to disposeof transformers and capacitors with minute amounts of
PCBs. We will continue with the proper disposal of these
items as they are produced.
Category

Disposal status

High concentration
PCB waste material
Minute amount
PCB waste material

Power capacitors (65 units) properly disposed of in2006 at the Toyota Oﬃce of the Japan Environmental
Safety Corporation.
Transformers and capacitors (5 units) properly
disposed of in 2013.

Soil and ground water conservation
We carefully monitor and treat soil and ground water contamination from toxic substances such as trichloroethylene̶
formerly used as a cleaning agent̶and pollutants enteringfrom outside our premises. Observation wells installed at allplants are routinely checked to ensure that no soil orgroundwater is contaminated with oils or other substances
speciﬁed in the Soil Contamination Countermeasures Act. As
contaminant concentrations at our Inazawa Plant have been
below reference values for the past two years, our lastreport to government authorities was in FY2012. Monitoring

activity, however, continues. We conducted soil surveys at
Toyoda Gosei Group oﬃces and have completed surveys for
Toyoda Gosei and our domestic aﬃliates.
LocationTargetStatus of corrective measures

Haruhi Plant

Groundwater

Puriﬁcation in progress (proactive treatment,
as contamination from oﬀ-site sources is possible)

Inazawa Plant

Groundwater

Due to detection of substances we have nohistory of using, regular reports to the government
contain results of measurements only.
* Results below reference values since 2010 (administrative report completed)

Restoration of wooded areas on factory sites worldwide
Launched with the 60th anniversary of the company sfoundation in 2009, Toyoda Gosei s Tree-Planting Project hascontinued to expand and grow. Beyond the broader goals ofprotecting ecosystems and preventing climate change, theprogram aims to create more natural environments intandem with local communities through activities to makefactory grounds greener, improve employees environmental
awareness and foster a sense of connection throughparticipation by all, and build stronger community ties
though joint eﬀorts with residents. Our goal is to plant
approximately 600,000 trees in about 60 TG locations
worldwide.
In this project we are promoting real woodlands bycultivating̶from seeds̶native trees that are suited to each
community s natural environment, restoring these sites to amore natural state. Our tree plantings incorporate events
that community residents, employees, and their families all
can enjoy, fostering a sense of unity through participation.
Management of the planted areas at each site continues, with

Growth status〈Heiwacho Plant〉

Planted November 200941

TOYODA GOSEI REPORT 2014

tree growth periodically measured and recorded, employees
weeding the grounds, and other activities.
Tree plantings in FY2013 included events at our Seto Plant and
Hinode Rubber Industries Co. inJapan and TG Kentucky LLC in
the U.S.A. In all events to datetotal participation has grown toaround 27,400 people, whohave planted a total of about
237,000 trees covering some
52,250 square meters.
Seto Plant (Japan), November 2013

Hinode Gomu Kogyo co., Ltd. (Japan), December 2013

TG Kentucky LLC (U.S.A.), March 2014

〈 Toyoda Gosei Thailand〉

April 2014

Planted February 2010

April 2014

Environmental Eﬀorts at Aﬃliated Companies
Hoshin Gosei Co., Ltd.

The company set up an education dojo to instill this thinking in
employees and regularly spread awareness of the program. In
addition to safety and health guidance for employees, the company has built an outdoor wooden deck and other spaces
where employees can take breaks to refresh their spirits. Basedon the core concepts of creating a safe workplace and safe
workers, this approach to health and safety has received highpraise, winning the Nagano Labor Bureau Director s Superior
Prize for FY2013.

DATE

Awarded the Nagano Labor Bureau
Director s Superior Prize■ Location: Nakagawa, Kamiina-gun, Nagano Prefecture■ ISO 14001 certification: June 2003

■ Established: August 1974

■ ISO 9001 certification: January 2004

■ Capital: ¥230 million■ OSHMS certification: October 2008

■ Business: Manufacture and processing of plastic automotive components

Environmental Reports

Toyoda Gosei (Zhangjiagang) Plastic Parts Co., Ltd. (Zhangjiagang TGP)
Highly regarded for labor-management relations while operating under
Zhangjiagang City s strict environmental regulations.
citizens, and other participants planting 27,000 trees.
Zhangjiagang TGP was also
awarded by the People s
Government of Zhangjiagang City in 2013 as an enterprise with superior labor
relations for its outstanding
labor-management relations.

Financial Reports

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

Corporate Data

Located in Zhangjiagang City, about two hours northwest of
Shanghai, Toyoda Gosei (Zhangjiagang) Plastic Parts Co., Ltd.
(Zhangjiagang TGP) conducts operations including plastic
automotive component molding, plating, and painting. Its
location along the lower Yangtze River makes it subject tostrict environmental regulations. Zhangjiagang has been designated a National Model City for Environmental Protectionin China, and over its ten years of operation here Zhangjiagang TGP has become recognized locally as a top company
for the environment.
Energy-saving measures include improvements to molding
machine cooling pumps, inverter controls for plating air
intake systems, and integration of two transformer rooms
into a single room in line with production volumes, resulting
in a 9% cut in energy consumption over the previous year.
Water usage was reduced by installing a decompressiondehydration device for wastewater from plating processes,
enabling reuse of wastewater condensed and collected
through vacuum distillation and solid-liquid separation.
Waste is reduced by cutting waste at its source and recycling waste plastic included in plated items. Environmental
protection activities include regular repair of ﬂoors in platingareas to prevent leakage of toxic wastewater and soil contamination, and systems to monitor wastewater constituents.
A blue card system rewards employees who discoverequipment or quality problems, while another system solicits
ideas for improvements. These sorts of programs to prevent
defects also tie into the company s environmental protection
activities.
Corporate social responsibility (CSR) work includes community cleanups, blood drives, and donations. Together with
Zhangjiagang TGSS, a tree-planting activity was held in March2013 with some 2,300 employees, family members, local

Social Reports

Hoshin Gosei Co., Ltd.

Management Reports

A manufacturer and processor of parts used around instrument
panels as well as mat clips and other plastic interior components
for automobiles, Hoshin Gosei Co., Ltd. incorporates environmental
protection measures in its production processes and conducts
cleanup activities in areas around the company. Energy-saving
measures include consolidating and centralizing injection
molding machines and replacing ﬂuorescent lighting with LEDs.
The company also wraps steam pipes during winter withelectric heating wire and insulating materials. This allows themto cease continuous operation of boilers, thereby reducing
kerosene consumption 35%. A program to reduce wastematerial included reducing the amount of scrap by recoloring
plastic parts and expanding use of pallets to increase recycling.
Activities to minimize water usage include recirculating waterused for cooling molding machines and other equipment.
Community activities for both environmental protection andcorporate social contribution include monthly cleanup
sessions in the neighborhoods around the company andtraﬃc safety activities on school routes near the company.
The company employs manufacturing practices that integrate
safety, quality, and environmental protection, believing thatenhanced safety and health helps to prevent production problems (i.e., improve quality), and is linked to energy savings,
reduction of waste products, and other environmental issues.

Business Reports

Promoting craftsmanship in manufacturing that integrates safety, quality,and environmental protection. Actively working for better health, safety, and welfare.

Decompression-dehydration device

Cleanup activities

Tree-plantingEnterprise with superior labor relations award

D AT E■ Location: Zhangjiagang Free Trade Zone, Jiangsu Province, 215634, China■ Established: November 2003

■ Business: Manufacture of interior components■ Capital: ¥23 million■ ISO 14001 certification: December 2008

■ Number of employees: 455■ ISO/TS16949 certification: October 2011

TOYODA GOSEI REPORT 201442

Environmentally Eﬃcient LEDs

Environmentally-friendly LED products manufactured in an integrated system.
Greater use will contribute to the prevention of global warming.

Wide use of LEDs within the company
We are increasing the use of LED lighting within the company. By last year we had ﬁnished switching about 70,000
lights from ﬂuorescent type to LED. Now we are moving
toward replacing high ceiling lighting at all business locationsin Japan with LED lighting by FY2015. So far, a changeoverof about 960 lights has been completed in eight plants andone oﬃce in the Kyushu region and leading green plants.
All lighting in ﬁve business locations in Japan, including the
Heiwacho Plant, has now been converted to LED.* As amanufacturer of LEDs, wewill continue our educational activities and eﬀorts
for wider use of LEDs, contributing to environmental
preservation and broad
energy eﬃciency.
*Excluding certain special lighting andprocesses

High-ceiling LED lighting

Growing the LED business
LED products are characterized by energy eﬃciency and longservice life. We develop and produce these environmentallyeﬃcient products at every step, from elements to lightsource modules. We are also developing surface-emitting
LED room lamp units for automobiles. In these units theentire lamp gives oﬀ a uniform light that is 2.5-times brighter
than conventional light bulbs while reducing power
consumption about 84%. LEDs have been widely used as abacklight light source for liquid crystal displays in notebook
and tablet computers and automobile meters. Recently wehave been focusing more eﬀort on LED light sources forroom lighting and plan to grow our business in this ﬁeld.

Overhead console

Surface-emitting LED room lamp unit

◆ Actively promoting the advantages of LEDs at events and exhibitions
In FY2013 all lighting at our exhibition booths at the Shanghai Motor Show and other events were LEDs, showcasingenergy savings and LED technology. At the Tokyo Motor
Show our entire booth was bright and energy-saving with theuse of slim base lights that have brightness equivalent to two
ﬂuorescent tubes. We also conducted a trial of the world sﬁrst 3m-LED tube light. At an exhibition in Messe Nagoya, we
presented the Vegefull Studio, developed in conjunction
with Toyotomi Kiko, which uses LED lighting to grow plants.
We also supported Nagoya Akaria Night in November,
exhibiting a large tree that used light and color modulating

LED lamps to give a magical feel tothe night sky.

LED lamps used in floor

Tokyo Motor Show 2013

Vegefull Studio◆ LEDs at plants and facilities
To increase the use of LEDs we have been actively
converting to LED lighting at Toyoda Gosei. We have also
been promoting the use of LED lighting at oﬃces, plants, andother facilities of the Toyota Group. In FY2013, LED lighting
was adopted at many of these operations, including oﬃces
of Toyota Boshoku Kyushu and the Toyoake Plant of
Churitsu Electric Corp.
Toyota Boshoku Kyushu

Toyoake Plant, Churitsu Electric Corp.

◆ Research into plant cultivation and color temperature
We are continuing to research and evaluate other LED
products. In one such eﬀort we are providing special LEDs
for tests of indoor vegetable cultivation. Another is researchon brightness and color temperature for pleasant andeﬃcient lighting spaces. One product that has resulted fromthese eﬀorts is a light and color modulating base light thatcan easily reproduce illuminance and color temperature tosuit any setting in multipurpose rooms. For these lights we
received a Good Design Award jointly with Sanken ElectricCo. (Exhibited at the World Headquarters, Miwa TechnicalCenter, and Heiwacho Plant.)

43

TOYODA GOSEI REPORT 2014

Daytime light for conferences and events

GOOD DESIGN AWARD
2013 RecipientLight and color modulating base light (NVR2ZA)

Warm white light for banquets and parties

Environmental Protection Costs

We do our utmost to properly understand the costs incurred for environmental protection in our businessactivities, and undertake appropriate environmental preservation activities.
sites). The economic eﬀects from these activities included lower
waste disposal expenses as a result of measures to combat
waste where it is generated and recycling, and reduced
electricity expenses from more eﬃcient facilities.

■ Environmental protection costs■ Eﬀects（Unit: ¥100 million）

Toyoda Gosei

Research and development
costs*1
Costs within businessareas*2
Management
activity costs*3

7.0

̶

14.5

1.2

1.2

0.2

Social activity costs*

1.1

0.1

Costs for environmental
measures*5

0.1

0

Total

23.9

1.5

4

■ Environmental protection costs

Toyoda Gosei

Aﬃliates in Japan,
total

Energy expenses

1.5

0.5

Waste-processing expenses

2.0

1.0

Total

3.5

1.5

Item

Quantitative eﬀect※7

Global warming prevention(CO₂ reduction)

5,500t -CO₂

Legal compliance

Described on page 41

Waste reductions(amount reduced)

895t（Japan plant data posted on Toyoda Gosei website）*6 The economic eﬀects calculated here are those that can be ascertained
based on solid evidence.
*7 Amounts are calculated for Toyoda Gosei alone.

■ Economic eﬀect

Toyoda Gosei（￥100 million）

Item

Aﬃliates in Japan, total

Toyoda Gosei（￥100 million）

Aﬃliates in Japan, total

20

1.5
23.9

20

10

1.5
'09

'10

'11

'12

'13 （ﬁscal year）

0

3.5
'09

'10

'11

'12

'13 （ﬁscal year）

Professor
Graduate School ofEnvironmental Studies,
Nagoya University

TOYODA GOSEI REPORT 2014

Corporate Data

Mitsuru Sano

The purpose of this report is to explain to all stakeholders the activities of Toyoda Gosei as a
global supplier of products and services in the ﬁelds of polymers and optical semiconductors.
Following is my opinion as a third party, from the perspective of environmental reporting.
Toyoda Gosei is making good progress in its Fifth Environmental Action Plan, which serves as aroadmap for the company s environmental eﬀorts from 2011 to 2105. This Plan was preparedbased in their basic environmental policy. All targets for the year have been achieved, andsome for 2015 have even been achieved ahead of time. This appears to be the result of activities by all employees for the action items laid out in each area. I hope they will continue thisprogress, never forgetting the support they receive from stakeholders.
In the area of research and development, further advances are being made in the development of lightweight parts made of plastic instead of metal to reduce the environmental impact.
One speciﬁc example is their report on intercooler piping. This was a very interesting example
of both reducing the environmental impact from production and raising competitiveness inJapan by sharing with suppliers technical information that incorporated the company s proprietary knowledge. In this case, the information was on the development of more compact
molds that reduce the weight (volume) by half compared with previous molds.
On the systems front, I was impressed with their thorough management of chemical substances as a global supplier, using easy-to-understand diagrams that show what eﬀorts weremade when to enhance the management of the chemical substances contained in products.
One can also see that they are making full eﬀorts to strengthen operation of overall environmental management, such as by putting in place environmental management systems at theiroverseas aﬃliates.
Toyoda Gosei s Fifth Environmental Protection Plan has two years remaining, and they are continuing their activities to achieve all targets. As they progress in these eﬀorts, I look forward to
Toyoda Gosei products and services that are price competitive and feature rich, staying aheadof the times and leading the industry.

Financial Reports

Please visit our website for environmental data. An independent review was commissioned for CO2 emissions. http://www.toyoda-gosei.co.jp/csr/

Independent
opinionEnvironmental Reports

400Social Reports*1 Costs for research and development of products that reduce environmental impact.
*2 Costs to reduce environmental impacts from production, including pollution
control, reduced energy consumption, and waste disposal.
*3 Costs for management, including education, maintenance of the environmental
management system, and measurements.
*4 Costs for such measures as tree-planting and beautiﬁcation.
*5 Costs for dealing with environmental impacts from business operations.

（Unit: ¥100 million）

Economic eﬀect※6

Management Reports

Type of costAﬃliates in Japan,
total

Business Reports

In FY2013 our focus in environmental protection costs was on
research and development, business operation sites (converting
high-ceiling lighting to LED, recycling, reducing greenhouse gas
emissions), and social activities (woodland restoration at factory

44

Operating Results and Financial Position
Analysis of operating results
In the term covered by this report, the world economy saw
an economic slowdown in some emerging economies but
also an overall gradual recovery in business conditions in theUSA, Japan, and other developed countries.
In the automobile industry, growth in production volumes
slowed in the Southeast Asian and other emerging
economies that had been steadily expanding in recent years,
but the global market overall was strong, propped up by
healthy North American and Chinese markets and newmodel launches in Japan. In the LED industry, the market
continued to grow with the spread of smart phones, tablet
computers and other mobile devices, plus the wider use of
LED lighting. Entry into the market of new companies,
however, has meant increasingly severe price competition.
Faced with these conditions, the Toyoda Gosei Group strives
to be a supplier that provides the highest levels of satisfaction
to customers, continuing from last year to give top priority to
our company policy of Ongoing quality improvements thatraise customer satisfaction. All employees carry out quality
activities and work to further improve quality. In moving
toward sustainable future growth, our eﬀorts are focused on
expanding our business by raising product competitivenessas well as aggressive expansion in growing markets.
An example of expanding our business by raising productcompetitiveness in the automobile parts business is thedevelopment of a transparent acrylic radiator grille, which isused on Toyotaʼ s new Harrier (Lexus RX) model. The
high-precision molding technology used for these grilles
allows greater freedom of design. We have also developed
knee air bags with much improved performance, including
faster deployment than previous airbags. In the developmentof these products, we have greatly reduced the variety ofparts by sharing design speciﬁcations and adopting simple,
easy-to-build product structures. These eﬀorts have beenrecognized by automakers for enabling them to install thesame product on multiple vehicle models, and we have received
commendations from customers. In the optoelectronics
business, we have developed and begun selling Slim BaseLights. These are easily installable LED ﬂuorescent tubes for■ Sales■ Ordinary income / Current net income(billion yen)

689.4

700

599.6

600
500

495.0

516.9

30
20

200

2010

2011

2012

2013

Current net income

45.8
36.7
26.5
14.2

27.5
17.1

ended
2014（ Years
March 31 ）

0

2010

20.2

21.4

26.2

8.9

10

100

TOYODA GOSEI REPORT 2014

Ordinary income

60

40

300

45

(billion yen)

50

504.5

400

0

use in factories. They have a service life that is about six
times longer than that of conventional ﬂuorescent tubes,
while consuming only about half as much electricity. We havealso developed high intensity LED light sources that provide
brightness equivalent to that of the mercury vapor lamps
used in high-ceiling facilities such as factories andgymnasiums, and begun sales of high-ceiling LED lighting.
Our eﬀorts are focused not only on performance, but also on
making products that will be popular with a wide range ofgeneral consumers. These eﬀorts have been rewarded withthe 2013 Good Design Award for the Sanken Neo View, apleasant LED ﬂuorescent tube with easily adjustable
illuminance and color.
Our attention is not limited to the development of new
products, however. We are also seeking to increase theeﬃciency of the logistics that support our business. Ourlogistics subsidiary, TG Logistics Co., Ltd., has pursued an
improved distribution system that combines just-in-time, apillar of the Toyota production system, and greater loadeﬃciency. This resulted in the receipt of the Logistics Award,
the most prestigious award in the Japanese logistics industry.
As for aggressive expansion in growing markets,
international markets are becoming increasingly important to
Toyoda Gosei, and we are actively investing in markets
around the world.
In the European region, we established a new company after
acquiring the rubber business from Meteor Gummiwerke inGermany. With this acquisition we have become the only
automobile parts manufacturer to have development,
manufacturing, and sales operations for weatherstrip productsin the developed markets of Japan, America, and Europe.
In the Americas, we established our third production
subsidiary in Mexico, Toyoda Gosei Rubber Mexico, with theaim of strengthening our competitiveness and productsupply system for rubber hoses.
In the Asia and Australia region, we invested in a plant
expansion and facility capacity increases at P.T. Toyoda
Gosei Safety Systems Indonesia. These improvements willraise the airbag production capacity to ﬁve times its current

2011

2012

2013

ended
2014（ Years
March 31 ）

manufacturers, as well as greatly increased revenue from acurrency exchange eﬀect with the correction of the strong
yen. Proﬁts were up as well. Thanks to increased sales in theautomotive parts business and rationalizations such as cost
reduction activities by the entire group, operating income
was 43.7 billion yen (19.3% increase over previous term),
ordinary income was 45.8 billion yen (24.7% increase overprevious term), and current net income was 26.2 billion yen(22.3% increase over previous term).

Business Reports

level. In China, we have expanded the plant at Tianjin StarLight Rubber and Plastic Co., Ltd. to 1.5 times its current size
and introduced a highly eﬃcient production line in order toexpand sales of automotive sealing products.
Total sales in the automotive parts business in this term
were 689.4 billion yen (15.0% increase over the previousyear), the highest in company history. This resulted from anincrease in the number of automobiles produced and active
expansion of sales to European and American automobile

Management Reports

Analysis of ﬁnancial position◆ Assets, liabilities and net assets
previous term, to 241.5 billion yen, due mainly to bank loans.
Our net assets recorded an increase of 28.1 billion yen
compared to the end of the previous term, to 300.2 billion yen.
This was due mainly to an increase in accumulated earnings.

◆ Cash ﬂows
at the end of the previous period. The status of each cash ﬂow
in the current period and related factors are described below.

■ Cash ﬂow from business activities■ Cash ﬂow from ﬁnancial activities

Cash ﬂow from business activities increased 2.9 billion yen
to revenue of 55.4 billion yen, up from 52.4 billion yen theprevious term. This was due to net proﬁts before tax adjustments
for this term and depreciation and amortization.

Cash ﬂow from ﬁnancial activities decreased 5.3 billion yen
to expenditures of 700 million yen, down from 6.1 billion yen
the previous term. This was due to balance of payments from
dividend payments, and long-term loans and their repayment.

Environmental Reports

Cash and cash equivalents (hereinafter referred to as funds )at the end of the period under review came to 92.0 billion yen,
an increase of 13 billion yen over the ﬁgure of 78.9 billion yen

Social Reports

Total assets in the current term increased 52.2 billion yen
from the previous term, to 541.8 billion yen, due mainly toincreases in tangible ﬁxed assets, cash on hand, and money
on deposit. Our liabilities increased 24.0 billion yen from the■ Cash ﬂow from investments■ Capital investment / R&D expenses(billion yen)
300
250

272.1
229.9

234.0

(billion yen)

300.2

50

237.3

200
150

30

100

20

50

10

2010

2011

2012

Capital investment

60

40

0

Corporate Data

■ Net assets

Financial Reports

Cash ﬂow from investments increased 4.6 billion yen, to
expenditures of 45.6 billion yen compared with 40.9 billion
yen the previous term. This was due to increased expendituresfrom acquisition of tangible ﬁxed assets.

2013

2014（ Years ended）
March 31

0

R&D expenses

46.9
37.6

34.3
26.0

2010

25.6

2011

25.9

2012

39.0
27.2

2013

43.0
29.1

ended
2014（ Years
March 31 ）TOYODA GOSEI REPORT 201446

Consolidated Five-Year Financial Summary
Toyoda Gosei Co., Ltd. and its Consolidated Subsidiaries
Years ended March 31(Unit: million yen) (Rounded down to nearest million yen)

2014

2013

2012

2011

2010

Net sales

689,477

599,615

504,518

516,982

495,002

Operating income

43,79836,706

20,41529,952

26,202

Ordinary income

45,847

36,777

20,28727,54926,574Current net income

26,214

21,4298,971

17,116

14,255

Overseas sales

387,152

303,063

233,650

242,158

233,425

Depreciation and amortization

38,74338,633

41,964

44,481

43,007

Capital expenditures

43,08539,097

37,62347,83235,190R&D expenses

29,17027,27925,936

25,617

26,066

Net income per share-basic

202.54165.6369.33

132.27110.19Net income per share-diluted

202.53ーー

132.27110.17

Total net assets per share

2,161.58

1,955.47

1,708.41

1,680.96

1,650.90

Cash dividends per share

56

44

36

36

36

Total assets

541,877

489,644454,794

416,562434,344

Total net assets

300,279

272,144

237,367

234,074

229,915

Capital stock

28,02728,02728,02728,02728,027

129,437

129,406

129,407

129,407

129,399

Net cash provided by operating income

55,44852,451

51,11262,586

68,199Net cash used in investing activities

For the YearPer share of common stock (yen)At Year-End

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

Cash Flows△45,680△40,989△37,027△52,579△36,574

Net cash provided by (used in) financing
activities△732△6,1282,224△18,785△7,426

Cash and cash equivalents end of year

92,02078,924

69,91454,32667,490Return on equity (ROE) (%)

9.8

9.0

4.1

7.9

6.9

Return on assets (ROA) (%)

8.9

7.8

4.7

6.5

6.4

Rate of sales (ROS) (%)

6.4

6.1

4.0

5.8

5.3

Debt/Equity ratio (%)

24.9

23.4

24.3

21.2

27.7

Interest coverage (times)

39.4

44.7

21.3

35.7

24.2

EBITDA (millions of yen)

84,68975,22061,23771,87867,652

31,67230,19029,10826,96426,084

IndicesNumber of employees at year-end

Note 1. Net income per share, ROE and ROA are computed based on the average number of shares, total net assets and total assets, respectively, for each consolidated ﬁscal year.
Nate 2. Debt/Equity ratio = Interest-bearing debt / Total net assets
Note 3. Interest coverage = (Operating income + Interest and dividend income / Interest expenses
Note 4. EBITDA = Income before income taxes + Interest expenses - Interest and dividends income + Depreciation and amortization

47

TOYODA GOSEI REPORT 2014

Consolidated Balance Sheets /Consolidated Statements of Income
Toyoda Gosei Co., Ltd. and its Consolidated Subsidiaries
March 31, 2014 and 2013

(Unit: million yen) (Rounded down to nearest million yen)

AssetsCurrent assets

Inventory assets
Other current assets
Fixed assets
Property, plant and equipment

2013

2014

2013

541,877

489,644279,281244,798

241,598

217,500

168,136

157,748

92,36479,073

Trade notes and accounts payable

75,92872,287102,281

Short-term debt, etc.

114,82148,583

43,56540,47048,785

Other current liabilities

48,642

44,98923,511

14,658262,596244,846

210,214

196,163

2,291

2,524

Investments and other assets

50,09046,158541,877

489,644

Total assets

Current liabilities

Long-term liabilities

59,751

31,13823,329Other long-term liabilities

42,32436,422300,279

272,144

275,840

255,201

Capital stock

28,02728,027

Capital surplus

29,882

29,844

Accumulated earnings

217,930

197,329

3,949▲2,192

128

447

Net assets
Shareholders equity

Accumulated othercomprehensive income

Subscription rights to shares
Minority interests in consolidated
subsidiaries

20,35918,688

Total liabilities and net assets

541,877

489,644(Unit: million yen) (Rounded down to nearest million yen)

Net Sales
Cost of sales
Gross profit
Operating income
Non-operating expenses

2013
599,615

597,062

521,051

Extraordinary income
Gain on reversal of subscription
rights to shares

Extraordinary losses

2014

2013

287

224

287

224

33

430

-

427

92,41578,563

48,61641,857

43,79836,7063

5,083

Income before income taxes
and minority interests

33

5,494

46,101

36,571

Impairment loss on long-lived assets
Other extraordinary losses

Interest expenses

1,299

823

Income taxes ‒ current

16,162

12,998Other non-operating income

4,195

4,259

Income taxes ‒ deferred

953

457

3,445

5,012

Income before minority interests

28,985

23,115

2,771

1,685

Net income

26,214

21,429Non-operating expenses
Interest expenses

1,144

838

Other non-operating expenses

2,301

4,173

45,847

36,777

Ordinary income

Minority interests in consolidated
subsidiaries

TOYODA GOSEI REPORT 2014

Corporate Data

Selling, general andadministrative expenses

2014
689,477

Financial Reports

Consolidated Statements of Income

Environmental Reports

73,462Long-term bank loans payable

Social Reports

Intangible assets

Liabilities

Management Reports

Cash and cash equivalents
Trade notes and accounts
receivable

2014

Business Reports

Consolidated Balance Sheets48

Corporate Data
Global Network As of June, 2014
With 64 group companies in 18 nations and regions around the world

14 companies in
China/Taiwan/Korea

Consolidated subsidiaries: 57 (13 in Japan, 44 in other countries)
Equity method affiliated companies: 7 (3 in Japan, 4 in other countries)

Toyoda Gosei Korea Co., Ltd.［TG Korea］

Toyoda Gosei UK Ltd.［TGUK］■■
Toyoda Gosei Europe N.V.［TGE］

Toyoda Gosei（Shanghai）Co., Ltd.［Shanghai TG］

Toyoda Gosei Meteor GmbH［TG Meteor］■

4 companies
in Europe

Toyoda Gosei Optoelectronics（Shanghai）Co., Ltd.［Shanghai Opto］
Toyoda Gosei（Zhangjiagang）Co., Ltd.［Zhangjiagang TGSS］■
Toyoda Gosei（Zhangjiagang）Plastic Parts Co., Ltd.［Zhangjiagang TGP］■

Toyoda Gosei（Tianjin）Precise Plastic Co., Ltd.［Tianjin TG Precision］■

South Yorkshire

Tianjin Toyoda Gosei Co., Ltd.［Tianjin TG］■■■

Bockenem (Germany)
Klášterec (Czech)

Zaventem (Belgium)

Tianjin Star Light Rubber and Plastic Co., Ltd.［Tianjin Star Light］■
Toyoda Gosei Czech, s.r.o.［TGCZ］■■■
Tianjin3 companies
in India
Metzeler Automotive Proﬁles India Pvt. Ltd.［MAPS INDIA］■

ShanghaiFuzhouGhaziabad

Toyoda Gosei Minda India Pvt. Ltd.［TGMIN］■■■

Seoul

Zhangjiagang

Rajasthan

FoshanTaiwanHaiphong

TG Kirloskar Automotive Pvt. Ltd.［TGKL］■■

Bangalore

Chonburi
Samutsakorn

Toyoda Gosei Rubber（Thailand）Co., Ltd.［TGRT］■■
Toyoda Gosei Asia Co., Ltd.［TGAS］
Toyoda Gosei（Thailand）Co., Ltd.［TGT］■■■

Jakarta

Toyoda Gosei Haiphong Co., Ltd.［TGHP］■

1 companyin Africa

P.T. TG INOAC Indonesia［TGII］
P.T. Toyoda Gosei Safety Systems Indonesia［TGSSI］■

Toyoda Gosei South Africa（Pty）Ltd.［TGSA］■

6 companies inSoutheast Asia

DurbanSouth Australia

Toyoda Gosei Australia Pty. Ltd.［TGAU］■■■

1 companyin Australia

World Headquarters

49

TOYODA GOSEI REPORT 2014

Toyoda Gosei North America
Corporation

Toyoda Gosei Asia Co., Ltd.

Toyoda Gosei Europe N.V.

TG Missouri Corporation

Product Group■ Automotive Sealing Products■ Functional Components■ Interior & Exterior Parts■ Safety System Products■ Optoelectronic Products■ General Industry Products

18 companies inNorth America

16 companies
in JapanIchiei Kogyo Co., Ltd. ■TG Maintenance Inc.

Hinode Gomu Kogyo Co., Ltd. ■■TG Opseed Co., Ltd. ■Hoshin Gosei Co., Ltd. ■■FTS Co., Ltd. ■Toyoda Gosei Interior
Manufacturing Co., Ltd. ■TGAP Co., Ltd. ■TG Welfare Co., Ltd.
TG Logistics Co., Ltd.
Tecno Art Research Co., ltd.

Toyoda Gosei North America Corporation［TGNA］
TG Personnel Services North America, Inc.［TGPS］
TGR Technical Center, LLC［TGRTC］
TG Fluid Systems USA Corporation［TGFSUS］■

Toyoda Gosei Holdings Inc.［TGH］
Waterville TG Inc.［WTG］■

TG-Techno Co., Ltd.
Chusei Gomu Co., Ltd. ■■Ontario

TS Opto Co., Ltd. ■Social Reports

Kaiyo Gomu Co., Ltd. ■■Management Reports

TG Kentucky, LLC［TGKY］■■
TG Automotive Sealing Kentucky, LLC［TGASK］■

World Headquarters : Toyoda Gosei Co., Ltd.

QuebecTG Minto Corporation［TGMINTO］■

TG East Japan Co., Ltd.

Michigan
Ohio
MissouriKentuckyMeteor Sealing Systems, LLC［MSS］■
LMI Custom Mixing, LLC［LMI］■

Texas
San Luis Potosi

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

Environmental Reports

TG Missouri Corporation［TGMO］■■

Matamoros

Business Reports

Company names in the square
brackets [ ] are abbreviations.

Toyoda Gosei Texas, LLC［TGTX］■
Toyoda Gosei Brounsville
Brownsvill Texas,
Texas, LLC
LLC［TGBTX］［TGBTX］
TAPEX Mexicana S.A. de C.V.［TAPEX］■
Toyoda Gosei Rubber Mexico S.A. de C.V.［TGRMX］■

Tai-yue Rubber Industrial Co., Ltd.［Tai-yue Rubber］■■

TE Opto Corporation［TE Opto］■

Toyoda Gosei Automotive Sealing Mexico S.A. de C.V.［TGASMX］■
Toyoda Gosei Personnel Services Mexico S.A. de C.V.［TGPSMX］

Toyoda Gosei（Foshan）Rubber Parts Co., Ltd.［Foshan TGR］■■
Toyoda Gosei（Foshan）Auto Parts Co., Ltd.［Foshan TGP］■
GDBR Industria e Comercio de Componentes
Quimicos e de Borracha Ltda.［GDBR］■■■

Sao Paulo

Corporate Data

1 company inSouth America

Toyoda Gosei Automotive
Sealing Mexico S.A. de C.V.

Tianjin Toyoda Gosei
Co., Ltd.

Toyoda Gosei Minda India
Pvt. Ltd.

Financial Reports

Fong Yue Co., Ltd.［Fong Yue］■■

TG Kirloskar Automotive
Pvt. Ltd.

Toyoda Gosei Czech, s.r.o.

TOYODA GOSEI REPORT 201450

Network in Japan As of June, 2014

Product Group

Utsunomiya Sales Branch■

Automotive Sealing Products■

Functional Components■

Interior & Exterior Parts■

Safety System Products■

Optoelectronic Products■

General Industry Products

Iwate Plant ■■Saga Plant ■Tokyo Sales Branch

Kitakyushu Plant ■■■■
Kanagawa Plant ■■Hiroshima Sales Branch

Bisai Plant ■■Inazawa Plant ■■World Headquarters: Toyoda Gosei Co., Ltd.

Haruhi Plant ■Seto Plant ■Nagoya City

Miyoshi Distribution Center

Osaka Sales Branch
Aichi pref.

Shizuoka pref.

Kitajima Technical Center

Fukuoka Plant ■■■Miwa Technical Center
Nishimizoguchi Plant
Heiwacho Plant ■■■■
Morimachi Plant ■■Kitajima Technical Center

Inazawa Plant

51

TOYODA GOSEI REPORT 2014

Miwa Technical Center

Morimachi Plant

Bisai Plant

Miyoshi Distribution Center

Heiwacho Plant

World Headquarters/Haruhi Plant

Seto Plant

Corporate Data

As of March 31, 2014

Company emblem/Corporate name

June 15, 1949

Capital28,027 ｍillions of yen

Number of Employees

31,672（consolidated）
6,663（non-consolidated）

Location of Headquarters

March 31

Fiscal year end

1 Haruhinagahata, Kiyosu, Aichi

Management Reports

Directors/ Audit & Supervisory
Board Members / Corporate Oﬃcers
2014年6月19日現在
取締役・監査役及び執行役員

As of June 19, 2014

President

Managing Officers

Tadashi Arashima

Yasushi Miyamoto

Atsushi Sumida

Mitsuo Mori

Masakazu Hashimoto

Naoki Miyazaki

Nobuyuki Shimizu

Nobuo Fujiwara
Director, Senior Managing Officers

Masayoshi Ichikawa

Kazumi Otake

Daisuke Kobayashi

Corporate Officers

Shinichi Goto

Motoo Tanaka

Kazuaki Maeda

Toshihiro Yokoi

Hiroshi Yasuda

Toru Koyama

Katsumi Tanabe

Takashi Ishikawa

Makoto Horie

Ryo Onishi

Environmental Reports

Director, Managing Officer

Tomonobu Yamada

Social Reports

Executive Vice Presidents

Yoshiyuki Fujita

Audit & Supervisory Board Members

Toru Oguri

Shinichi Sasaki

Yoshiro Hayashi

Financial Reports

Yasushi Matsui
Masami Hadama

Authorized
Issued200,000,000 shares
130,010,011 shares

Stock exchange listings

Tokyo Stock Exchange andNagoya Stock Exchange

Number of shareholders

14,935

Transfer agent

Mitsubishi UFJ Trust andBanking Corporation
Stock Transfer Agency Department,
Mitsubishi UFJ Trust and Banking
Corporation

7-10-11 Higashi-suna, Koto-ku,
Tokyo 137-8081, Japan
Tel. 0120-232-711(Toll-free number in Japan)

Major shareholders（ten largest）
Shareholder name

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

Toyota Motor Corporation

55,45942.65

Master Trust Bank of Japan, Ltd. (Trust Acct.)

7,183

5.52

Sumitomo Mitsui Banking Corporation

5,049

3.88

Japan Trustee Services Bank, Ltd. (Trust Acct.)

4,600

3.53

Nippon Life Insurance Company

1,611

1.23

Dai-ichi Life Insurance Company, Ltd.

1,493

1.14

Mitsui Sumitomo Insurance Co., Ltd.

1,162

0.89

Daiei Sangyo Kaisha, Ltd.

1,031

0.79

Toyoda Gosei employee shareholding assoc.

1,008

0.77

Denso Corporation

1,002

0.77

TOYODA GOSEI REPORT 2014

Corporate Data

As of March 31,
2014
Stock
Information
2014年6月19日現在
取締役・監査役及び執行役員

Common stockBusiness Reports

Established52

﹈Report on Activities of FY 2013

With regard to creating an environment that is kind toboth people and the Earth, and from the perspective ofenvironmental conservation and the valid use ofresources, we base our actions on three points, or three
don ts, : Don t make/use [tsukuranai], Don t throw
away [sutenai], and Don t leave things to others[makasenai]. Together, these phrases make up the slogan
Nicely (the three nai s, or nai s-three, sound likeNicely when pronounced with a Japanese accent).
Treating humans and the Earth nicely is the trademarkof Toyoda Gosei s environmental activities.

﹇
TOYODA G O S E I R E P O R T 2 014

Treating Humans andthe Earth Nicely● This report is printed on paper with FSC
certification, indicating that it was produced
from properly managed forests.
● This report uses vegetable oil-based ink that
does not contain volatile organic compounds.
● This report was made with a waterless printing
method that does not produce harmful waste
liquid in the printing process.
● This environmentally-friendly product was
printed at a Green Printing-certified plant using
printing materials that conform to green
criteria.
● This report uses a universal design font withoutstanding visibility and readability.
● Consideration was given to the color usage sothat the graphics are easy to see by as many
people as possible, regardless of individual
differences in color vision.

1 Haruhinagahata Kiyosu Aichi,
452-8564, Japan
Phone: +81-52-400-1055
Fax:+81-52-409-7491
http://www.toyoda-gosei.com/
Please recycle this publication.

2014.09.2,000 TP Japan

TOYODA GOSEI CO.,LTD.

General Administration Division,
Public Aﬀairs Dept.