TOYODA GOSE I REPORT

Contents About Toyoda Gosei Value Creation Story Value Creation Strategy Foundation of Value Creation Data

We are a global company that delivers

satisfaction to customers worldwide
through safety, comfort, well-being and
the environment
The Toyoda Gosei Group continues to meet the needs of
society through the provision of automotive and other
products using rubber and plastic technology.
Company Creed

Boundless Creativity and

Social Contribution
Management Philosophy

Good corporate citizenship Proper business operation

We, as a good corporate citizen, contribute to We promote business operations with
the economy and society through community- integrity through the establishment of a
based business activities and social action system founded on thorough compliance and
programs. corporate ethics.

Sustainable growth Customer satisfaction

We aim to build up the TG Group's We aim to provide products and services
collective strength through an open and with satisfying quality and price in a timely
fair relationship with suppliers, through a manner, through forward-looking R&D and
mutually strengthened corporate structure and production engineering.
innovative management response to change.

Conservation of global Respect for the

environment and resources individual
We aim to conserve the global environment and We aim to establish a vibrant corporate
resources in order to hand down a greener culture through respect for individuality
world to our children through every business and the value of enhanced teamwork,
activity, which includes cooperation with based on shared responsibility and
society and the development of an mutual trust between employees
environment friendly product and and management.
manufacturing process.

The company logo was modeled after the “benzene nucleus,”

a chemical compound consisting of six carbon atoms. Even very active
and unstable chemical substances become stable in a hexagonal form,
and the logo symbolizes our vigor and stability.

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 Contents About Toyoda Gosei Value Creation Story Value Creation Strategy Foundation of Value Creation Data

Contents TOYODA GOSEI REPORT 2022 Editorial This report was compiled with the aim of providing shareholders, investors, and all other
stakeholders with a deeper understanding of the Toyoda Gosei Group. It describes the
Policy
FY2021 business performance of the Toyoda Gosei Group and explains the Groupʼs strategy
and initiatives for creating medium- and long-term value. Since the 2018 report was issued,
the Toyoda Gosei Report has been compiled as an integrated report. We have tried to
make it straightforward and globally understandable, with reference to the International
Integrated Reporting Framework (International Integrated Reporting Council (IIRC)) for

About Toyoda Gosei Foundation of Value Creation the IR section and the GRI Standards (Global Reporting Initiative) for the ESG section.

3 Company Creed / Management Philosophy 42 Environment Period covered by report Reference guidelines

4 Contents Contributing to Environmental Preservation Through April 1, 2021 to March 31, 2022 ・International Integrated Reporting Framework
All Our Business Activities / Building Decarbonized Past initiatives and the latest (International Integrated Reporting Council (IIRC))
5 Editorial Policy, Positioning of This Report Societies / Building Circular Societies / Environmental information are given as needed ・GRI Standards (Global Reporting Initiative)
Preservation and Building Environmentally-Friendly
6 History of Toyoda Gosei to promote understanding of dis- ・Environmental Reporting Guidelines, 2018 Edition
Societies / Environmental Management
closed content. (Ministry of the Environment, Japan)
8 Businesses and Locations ・Environmental Accounting Guidelines, 2005 Edition
54 Social
Scope (Ministry of the Environment, Japan)
Human Resources Strategy / Human Rights Initiatives /
Promotion of Human Resources Development / Active In principle, this report covers 61 * Environmental data/examples are available on our website.
Participation of a Diverse Workforce / Creating a Toyoda Gosei Group companies: For CO2 emissions we received third-party verification.
Pleasant Corporate Culture / Safety and Health / Health https://www.toyoda-gosei.com/csr/environmental/report1/
Toyoda Gosei Co., Ltd. and its 60
Management / Supply Chain Management / Uniform
domestic and overseas subsidiar-
Global Quality Assurance / Contributing to Local
Disclaimer
Value Creation Story Communities ies and affiliates.
The scope is outlined individual-
ly for some items. Careful attention was paid to the content of this
68 Governance
10 Letter from the President Report, but accuracy and the timing of updates are
Corporate Governance / Interview with Outside Directors / not guaranteed and Toyoda Gosei shall bear no
Date of issue
16 Value Creation Process Risk Management / Compliance / Management responsibility for trouble, loss, or damage resulting
Members
January 2023 from updates or errors in the information herein.
18 Management Capital
Last published in December
20 Competitive Advantages 2021; issued once a year

21 TG Spirit
22 Materiality (Key Issues)

Data Positioning
Financial information Non-financial information
of This Report
86 Financial and Non-Financial Highlights
Website Shareholder and investor information Website Sustainability
88 Consolidated 10-Year Financial Summary
https://www.toyoda-gosei.com/ir/ https://www.toyoda-gosei.com/csr/
Value Creation Strategy 90 Financial Review
92 Consolidated Financial Statements
24 Feature1 Building Transportation Societies That Consolidated statement of financial position /
Protect Irreplaceable Human Life Consolidated statement of profit or loss /
Consolidated statement of comprehensive income / Financial statement, securities report, more Environment/Social/Governance, more
26 Feature2 Developing Products for BEVs
Consolidated statement of changes in equity /
Consolidated statement of cash flows
28 Feature3 Moving From “Storage” and “Use”
to “Transport” and “Production” for Toyoda Gosei Report
Hydrogen Societies 96 Company and Investor Information https://www.toyoda-gosei.com/csr/dl/
30 Feature4 New Value Creation for the Future 97 External Recognition
32 Initiatives and Progress in Our 2025 Business Plan

40 Message from the Officer in Charge of Finance

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 Contents About Toyoda Gosei Value Creation Story Value Creation Strategy Foundation of Value Creation Data

History of Toyoda Gosei 2022 Miyagi Ohira Plant of Toyoda Gosei

East Japan Co., Ltd. begins operation

2016 Bawal plant of Toyoda Gosei Minda

Toyoda Gosei has exploited its expertise in rubber and plastics and provided new value to the world India Pvt. Ltd. begins operation

that meets the needs of the times. 2018 Gujarat plant of Toyoda Gosei Minda
India Pvt. Ltd. begins operation
PT Toyoda Gosei Indonesia is
established

2019 Hubei Toyoda Gosei Zheng Ao

Net sales (Billions of yen)

2001 Toyoda Gosei Asia Co., Ltd. is
established Rubber & Plastics Sealing Technology
Co., Ltd. is established
1982 Bisai Plant begins operation 2005 ISO /TS16949 certification Thai Binh plant of Toyoda Gosei
Haiphong Co., Ltd. begins operation
1985 Capital participation in Tai-yue 2006 Toyoda Gosei (Shanghai) Co., Ltd.
Rubber Industrial Co., Ltd. is established 2020 Inabe Plant begins operation
1949 Nagoya Rubber Co., Ltd. is
established as a spin-off of the Company wins Deming Prize for 2008 Toyoda Gosei Minda India Pvt. Ltd.
Total Quality Management 2021 Monterrey plant of TAPEX Mexicana,
rubber research division of Toyota is established S.A. de C.V. begins operation
Motor Industry Co., Ltd. 1986 TG Missouri Corporation is New plant of Hubei Toyoda Gosei
2009 Miwa Technical Center is
1957 Haruhi Plant begins operation established established Zheng Ao Rubber & Plastics Sealing
Technology Co., Ltd. begins operation
1967 Inazawa Plant begins operation 1997 Company obtains ISO 9001 2013 Toyoda Gosei East Japan Co., Ltd. is
Present Kitajima Technical Center established
1973 Company name is changed to is completed GDBR Industria e Comercio de
Toyoda Gosei Co., Ltd. Componentes Quimicos e de
1999 Company is listed on the Tokyo
Stock Exchange Borracha Ltda. is established
1976 Morimachi Plant begins operation
Company obtains ISO 14001 2014 Toyoda Gosei Irapuato Mexico, S.A.
1977 US Office is established in Illinois Toyoda Gosei North America de C.V. is established
Corporation is established
1978 Company is listed on the Nagoya
Stock Exchange 2000 Toyoda Gosei Europe N.V. is
established
1980 Headquarters is relocated to
present location (Kiyosu, Aichi
Prefecture)

Development history of technologies and products

Automotive
parts
Rubber
1953 1961 1977 1983 2011
Brake hoses Piston cups Constant velocity Nylon fuel hoses Lightweight radiator hoses
joint boots

1963
Flocked glass runs
1950 1982 2003 2010 2017
Weatherstrips Sound insulating glass runs Two-color molded Lightweight opening Glass runs for flush
opening trims trim weatherstrips surface door

Plastics
1982 2000 2008 2014 2015 2017 2018 2019 2020 2022
1954 1960 1974 Plastic fuel filler caps Noise absorbing Plastic fuel Plastic water pipes Capless Large radiator Air conditioner Plastic turbo ducts / Extra-large High pressure CNF-Reinforced
Plastic injection PP steering wheels Instrument panels air intake ducts filler pipes fuel fillers grilles registers with Battery cases spindle grilles hydrogen tanks Plastic
steering wheels LED lighting

2020 2021
UV-C space disinfectors, which Driver-side airbags for better protection in angled
1989 1998 2008 2017
Driver-side airbags Curtain airbags Rear-end impact 2010 Steering wheels with grip sensor / use UV-C (deep UV) LEDs, are frontal collisions ／ Pedestrian protection airbags
airbags Start of R&D for GaN New type of side airbags launched
power devices UV-C (deep UV) LEDs 2022
New fields are confirmed to be highly Success in making
larger GaN substrates
2014 effective in inactivating
Profs. Isamu Akasaki and Hiroshi Amano COVID-19 2021 for next-generation
(Toyoda Gosei technical advisors) receive UV-C high-speed power devices
2019 surface disinfectors
Nobel Prize in Physics
1986 1991 Development with
Start of R&D for Success in EBM Corp. of the
blue LEDs development 2021
2007 SupeR BEAT heart
of blue LEDs Start of R&D Smart insoles
surgery simulator
is certified for e-Rubber that uses e-Rubber

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 Contents About Toyoda Gosei Value Creation Story Value Creation Strategy Foundation of Value Creation Data

Businesses and Locations

We supply rubber and plastic automotive parts globally.

Product area Global network

■ Automotive parts With 61 group companies in 16 countries and regions, Toyoda Gosei swiftly meets the needs of customers
around the world.
We have established sales and engineering systems that are customer-oriented and community-based with
Weatherstrips Functional globally optimal systems of production and delivery.
¥93.7 billion（11.3％）
Components
¥145.2 billion（17.5％）

Door glass runs Japan Americas

17 18
Plastic turbo ducts

Plastic fuel filler pipes

companies companies
Revenue by Brake hoses Sales Employees
Group Companies ＊
Sales Employees
¥399.5 billion 9,383 ¥240.7 billion 14,660
product area

Opening trim
weatherstrips
¥ 830.2 billion
High pressure hydrogen tanks
61
companies
（FY2021）
Asia *Companies for consolidation
Europe & Africa

Interiors and Exteriors

¥328.0 billion（39.5％）
Safety Systems
¥263.1 billion（31.7％）
22
companies
4
companies
Sales Employees Sales Employees
¥226.0 billion 14,125 ¥26.9 billion 1,343

Instrument panel modules and

components Airbags

Console boxes Sales by region (FY2021) Employees by region (FY2021)

Radiator grilles Steering wheels

(with built-in airbags)
Pop-up hood actuators
¥ 830.2 billion 39,511
D D
A Japan ¥399.5 billion A Japan 9,383
A
C
■ Other products A
B Americas ¥240.7 billion
C
B Americas 14,660
C Asia ¥226.0 billion C Asia 14,125
B D Europe & ¥26.9 billion B D Europe & 1,343
Africa Africa

*Rounded down to the nearest one hundred million yen

LEDs General industry products e-Rubber products Re-S eco-brand *Sales by region includes amounts for internal transactions within the Toyoda Gosei Group, and so does not match the total value for consolidated sales

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 Contents About Toyoda Gosei Value Creation Story Value Creation Strategy Foundation of Value Creation Data

Letter from the President

Creating a path to the future by offering solutions to environmental
and social issues through cooperation with our stakeholders

Our mission is leveraging our expertise in rubber In order to further reduce traffic fatalities, we
have been developing new airbags by leveraging our
and plastics to help resolve social issues accumulated technologies and our global development
and assurance system. With a sincere concern for safety,
Toyoda Gosei has been offering high-quality automotive we have pursued the potential of airbags to reduce
parts with synthetic rubber and plastics using our rubber casualties and protect vehicle occupants through analysis
and plastic material technologies for more than 70 years. of global traffic fatality data, repeated computer-aided
The word “Gosei” (synthesis) expresses our philosophy of engineering analyses and test trials, and much discussion
creating new things with these materials. That mindset with and numerous proposals to customers.
has been passed on to the present day. From this new airbag business development, I learned
Under the company creed of “Boundless Creativity that helping to solve social issues and other issues leads
and Social Contribution,” Toyoda Gosei's mission is to to corporate growth. We will embrace the actual problems
promptly grasp society’s needs and help to solve social for many people and propose solutions based on market
issues with the leading-edge technologies and products conditions. We will then spread solutions throughout the
we have cultivated and contribute to a sustainable world while continuing to develop our technology. This
environment and society. This will lead to sustainable will lead to the sustainability of our business. Our spirit
growth for our company. It is important for us to of taking on challenges, our know-how, and the global
anticipate changes and social issues five to ten years network we have developed are the source of our present
into the future, form an image of how we can contribute competitiveness.
solutions and the strengths we can leverage, and promote
our business models and grow our company while
enhancing our competitive advantages ( P.20) (Value
Solving major social issues through

▲
Creation Process P.16).

▲
cooperation with our stakeholders
For example, one of our longstanding goals has been
a safe, secure, and comfortable mobility society by Stakeholders have steadily rising expectations of com-
reducing traffic fatalities, as expressed in the section on panies to help solve social issues. For Toyoda Gosei, a
materiality( P.22). Through this, our airbag business has manufacturer of polymer automotive parts, our next big

▲
grown to acquire the top market share in Japan and 4th challenge is to achieve carbon neutrality.
globally. As we address this difficult social issue, it is important
In Toyoda Gosei’s first project to develop a driver's air- to cooperate with our stakeholders in order to improve
bag in the late 1980s, I was involved as one of its mem- problem-solving ability, competitiveness, and speed.
bers working. I myself became keenly aware of the importance of co-
At that time, we had experience with steering wheels, operation with stakeholders through the development of
instrument panels and associated material technology, airbags. This is why I believe one of my important roles

Toru Koyama
but airbags were completely new to us. Our knowledge as a leader is to build relationships with all stakeholders
of vehicle occupant protection systems and other safety involved in our business, including customers, suppliers,
President technologies was limited, and our evaluation and analysis employees, and local communities. For this purpose, I
technology was weak. The cornerstone of our project was will share the company’s future vision and direction, and
the spirit of delivering the airbags needed by customers as align our ideas with them through continuous dialog to
quickly as possible and a sense of mission to “save lives.” achieve corporate growth and help solve social issues.
Airbags are effective when installed in vehicles. With the transformation of automobiles and the
Accordingly, we worked to comprehensively overcome dramatically changing business environment, it is more
issues in conjunction with vehicle and seat belt systems important than ever to demonstrate to stakeholders the
after closely studying how they are used in the market company's direction and to undertake our initiatives
through occupant protection performance in crash tests. with a sense of urgency. As the leader of the company, I
Finally, we achieved mass production. will clearly present our medium- to long-term business
Since then, we have worked continuously to spread plan as a means to share and gain understanding of our
our airbags through efforts to lower costs and build a initiatives and promote solutions to the challenges we
supply chain that achieves the same quality globally. face in creating a sustainable society.

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 Contents About Toyoda Gosei Value Creation Story Value Creation Strategy Foundation of Value Creation Data

Taking these unprecedented changes in the automo- wheels that incorporate advanced design and high levels
Achieving our 2025 Business Plan tive business as an opportunity for growth, we will seek To achieve sustainable growth in today’s of safety.
to enhance our ability to make farsighted proposals changing environment, it is important for Even as vehicles change, we will continue to improve
A look back on FY2021 centered on carbon neutrality and responding to the shift the safety technology of our airbags to address the social
existing businesses to take an aggressive
In FY2021, it was difficult to ensure profits on a to BEVs ( P.26). We will also enhance our corporate ca- needs of protecting as many lives as possible in traffic

▲
global basis. The spread of COVID-19 caused a global pabilities by planting seeds for the future and solidifying posture in continuing to change accidents and providing safety in a timely manner to
semiconductor shortage and opaque production our management foundation. users around world.
fluctuations. There were also soaring prices and a tight Toyoda Gosei has maintained a leading position in
market for raw materials, along with rising energy, Forecast for achieving our 2025 Business Plan automotive parts made of rubber and plastics. In the IE business ( P.35), we aim to further grow

▲
transportation costs, and labor costs. We have reached the halfway point in our 2025 Business To achieve sustainable growth in the midst of the sales by strengthening our products and production
Even in this harsh environment, we have been urgently Plan ( P.32), published in 2018. We have been working recent major environmental changes, we need a “cycle engineering to reliably meet changing design and

▲
working on business continuity plan (BCP) management toward our goals of achieving revenue of more than of corporate growth” to ensure profitability. This function needs associated with the shift to BEVs and
to provide stable and timely production and quality, the 1 trillion yen, operating profit ratio of 8%, and ROE of includes reviewing our business and product portfolio autonomous driving. Examples in exteriors are stylish
lifeline of manufacturing, to our customers. Specifically, 10%. Looking back over the past four years, the business and further evolving our existing designs/materials and products that transmit millimeter waves, light, and
we have implemented continuous improvements through environment has changed more dramatically than we manufacturing capabilities, developing new products sound, and the development of environmentally-friendly
regular discussions on BCP at management and board had anticipated. We have asked each employee to think based on these management resources, and sending materials and decorative technologies. In interiors,
meetings, and we have enhanced our ability to supply and act on their own with a sense of ownership and to them to the market. Without an aggressive posture, we we will make timely proposals for new products that
customers even during material shortages brought on by be united in working on our policies and business plans. will not be able to maintain our position as a leader in leverage our accumulated technologies, focusing on next-
political instability or COVID-19 pandemic. We do this by These initiatives have begun to bear fruit, and sales this field, and will have little prospect of further growth. generation interiors such as functional LED lighting and
utilizing our global network to procure alternative parts revenue of 1 trillion yen is now within sight. The safety thin instrument panels that integrate airbag technology.
and establish backup production systems. In addition, systems business, a growth driver for the company, is In the SS business ( P.34), a growth driver for Toyoda

▲
to ensure global optimization and rapid responses, we spurring sales and earnings, and our other automotive Gosei, we will take an aggressive approach to new The FC business ( P.36) requires the most flexible re-

▲
have been reviewing our organization to strengthen businesses are focusing on regions where they can grow. product development with the aim of capturing the sponse to market changes. We focus on the development
global information collaboration and internal controls Meanwhile, there are a number issues to be ad- top market share. In India, where the automobile of next-generation cooling pipes for BEVs and hydrogen
at affiliates in Japan and other countries, and developing dressed in our commercialization of new technologies. market is expected to grow, we will strengthen our tanks for FCEVs to keep up with the wave of change. At
regulations and systems to ensure investment decisions Although the development of LED-related products for development and production systems and further the same time, we are developing a production system
and fund procurement to avoid loss. consumer use has progressed to a satisfactory level, the enhance collaboration with business partner Daicel that can handle the shift from gasoline to electric vehi-
We are now beginning to see challenges in terms commercialization of new material-related products has Corporation in order to respond to the coming shift to 6 cles.
of profitability. It is extremely frustrating that we been delayed due to a lack of maturity in the technology mandated airbags for passenger cars by law. To ensure
were unable to secure profits commensurate with the and weak commercialization strategies. We believe that a that we do not miss any business opportunities, we will In the WS business ( P.37), more advanced technology is

▲
recovering trend in sales. Profits decreased due to review is necessary. Through a re-evaluation of our new implement winning business strategies such as local needed to reduce driving noise more than engine noise
worsening materials market conditions in the Americas, value creation development process since last year and procurement of components. We will also implement with the move to BEVs. We will propose products with
one of our primary sources of revenue, and a lack of our CVC activities ( P.30), we have been supplementing sales strategies to meet a wide range of customer needs improved quietness performance with our expertise in
▲

flexible response to production fluctuations. This was areas where we lack technology or knowledge to promote by proposing collision safety systems that optimize rubber materials cultivated over 70 years.
despite an increase in net sales from FY2020 with the early commercialization. airbags and seatbelts as a whole to increase our market
recovery in production following the significant drop share. To further improve safety performance, we will Toyoda Gosei’s identity lies in a high level of knowledge
caused by COVID-19 pandemic and growing sales in our FY2022 is a year of preparation for our final push to expand high-performance far-side airbags, develop high of rubber, plastics, and other polymer materials, and
non-automotive business. In order to efficiently secure achieve the 2025 Business Plan. We are taking early impact-absorbing airbags for BEVs, and propose steering accumulated experience in new business development,
profits in the coming years, we will make significant action on issues to achieve these goals, and allocating
efforts to shrink losses from variable costs by responding management resources to carbon neutrality and new
flexibly to material market conditions and production businesses, which are growing markets and fields, with an
fluctuations, and to reduce total costs through thorough eye to the future. We will work for corporate growth with
cost improvement. effective and maximum utilization of our resources.
We will continue to make concerted efforts to build
a foundation for efficient earning. While exploring new
Strategy by Segment/Business Field
ideas for manufacturing that go beyond precedent
or convention, we are making efforts to utilize IT for
Business field
SS IE FC WS
Interiors New
Total
rapid improvements through timely visualization of Safety
and
Functional
Weatherstrips Technology
Systems Components
productivity, yield, and defects. We are also expanding Segment Exteriors

smart factories globally with more efficient work styles, Japan

environments, and information management.
Americas
Over the past year, the situation of the automo-
tive industry has been changing dramatically. Our Asia
main customer announced their BEV strategy, and the
ongoing transformation of automobiles has accelerated Europe
significantly.

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including LED and airbag products. We hope to further sustainability activities in order to lead Toyoda Gosei into reviewed the operation of the Board of Directors and other
refine the technologies developed and passed on to us the future. functional bodies. We will make global initiatives to build
from our predecessors and contribute to solving social a foundation for sustainable increases in corporate value
issues through the creation of new value that goes Environmental activities are one part of the ESG concept, by developing an Internal Control Committee in addition
beyond the framework of automotive parts. the foundation of management. For about 30 years, to a new internal audit status report to manage and correct
we have been sincerely committed to reducing CO 2 corporate risks in an integrated manner. Compliance and
emissions and protecting the environment, by setting risk management, which have been handled individually,
specific activity goals every five years. Since last year, we will also be discussed from multiple perspectives
Using our strengths to maintain have been working toward our 2025 mid-range targets. (Governance Initiatives P.68).

▲
coexistence between the environment This increases the feasibility of a 50% reduction in CO2
emissions and 50% use of renewable energy (Targets 50 &
and polymer materials
50) by 2030 and achieving carbon neutrality by 2050. We
will evolve as a leading company for carbon neutrality in the
To our stakeholders
The world has become keenly aware of the importance field of automotive rubber and plastic parts. We can accelerate
of tackling environmental problems on a global scale. industry-wide initiatives for carbon neutrality and a circular The world is going through chaotic times, with political
Environmental problems caused by plastic and rubber economy by more quickly building a track record of activities instability, escalating environmental problems, and the
waste are being closely watched around the world. It is targeting Scope 3 emissions and spreading that positive impact spread of COVID-19. The automotive industry is also un-
also true that we cannot go back to manufacturing without throughout the auto parts industry. We also want to contribute dergoing a huge transformation. Even in this uncertain
polymer materials. Recycling and effective utilization of to clean hydrogen energy societies ( P.28) through our business environment, we are leveraging our management

▲
rubber and plastic materials have become crucial for the hydrogen tank technology, and continue our efforts to leave resources and core competencies with a sense of integrity
positive coexistence of the environment and polymer a safe global living environment for future generations to continue achieving sustainable growth.
materials. (Environment Initiatives P.42). We strive to be a company that contributes solutions to

▲
Toyoda Gosei’s extensive knowledge in rubber and environmental and social issues and moves into the future
plastics, compounding technologies, and using these Since last year, we have also strengthened our initiatives by working together with our stakeholders and partners
materials to full advantage can lead to major business to enable activities by a diverse workforce. We have always who share and understand our initiatives. For this purpose,
opportunities without adversely impacting the environment. respected each and every one of our employees, and have the entire company is united in taking on new challenges
Currently, we aim to expand material recycling, including tried to make it possible for them to display their maximum with energy and enthusiasm.
recycling of waste materials and utilizing recycled abilities. With the establishment of a new Human Rights We would like to ask all of our stakeholders for their
materials in our products. If a company can establish green Policy, we hope to promote a culture of mutual respect continued understanding and support.
technology in the areas of rubber and plastics, it will open throughout the Toyoda Gosei Group and extending to
up a whole new world of business opportunities. We are all other stakeholders involved in our business activities.
Toru Koyama
collaborating with other companies on material recycling to The world is entering a period of major shifts in the social
President
make it into a viable business as soon as possible. environment, with declining birthrates, aging populations, November 2022
In addition to material recycling, we are making a wide diversifying work styles, and changing values. We see this
range of other initiatives, including reducing the amount as a turning point in our efforts to improve our corporate
of materials used, improving yields during production, capabilities, and we are examining and implementing
and substituting with bio-materials. We aim to become the personnel policies from various perspectives to ensure that
leader in carbon neutrality among polymer automotive employees with diverse ways of thinking and talents will
parts manufacturers by making major changes in design respect each other and display their maximum individual
and production engineering and cooperating with our strengths. This will lead to business growth opportunities
suppliers. and effective responses to corporate risks based on new
perspectives. Since each employee needs to acquire skills
that meet the needs of the times, we are also putting
greater emphasis on the reskilling necessary for the DX that
Leading the Toyoda Gosei of today into
is currently underway at Toyoda Gosei and the generation
the future of new business ideas. Employee job satisfaction and
motivation are also crucial to these activities, and so we
Photo taken at Toyoda Gosei Memorial Gymnasium (ENTRIO)
We are rapidly accelerating our sustainability activities. conduct employee engagement surveys to obtain their
Entrio was opened in September 2020 with the concept
Last year, we launched a new Sustainability Meeting true opinions, which we link to company policies and
of being a place that would bring people together
to discuss global issues presented in the Sustainable workplace improvements with the aim of creating vibrant through sports, make them smile, and energize them.
In addition to hosting the official games of Toyoda
Development Goals (SDGs) and management issues and energetic workplaces (Social Initiatives P.54).

▲
Gosei’s sports clubs and internal company events, it
related to the environment, society, and governance from creates excitement and contributes to a sustainable
society as a meeting place for people and people,
a medium-term perspective. The presence of outside To continue as a company of integrity, a cornerstone of our
people and companies, and companies and companies.
directors and outside Audit and Supervisory Board company, our governance system must constantly change
Origin of the name ENTRIO
members helps to ensure that our supervisory functions and evolve in response to the circumstances of the times The gymnasium was named for the three “en”
(connections) of work, community, and sports that we
work well and that balanced policies are agreed upon and the opportunities and risks we face. Last year, in line
treasure as we support each other and grow, and “trio”
and implemented. We will continue to take the lead in with revisions to Japan’s Corporate Governance Code, we meaning three.

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 Contents About Toyoda Gosei Value Creation Story Value Creation Strategy Foundation of Value Creation Data

Value Creation Process

With the company creed of “Boundless creativity and social contribution,”
the Toyoda Gosei Group leverages its expertise in rubber and plastic, its global reach,
and its experience in pioneering new businesses, and will continue to
meet social needs through the provision of automotive products and other innovations.

Toyoda Gosei aims to grow as a global compa-

Demands from society Company Creed/Management Philosophy P3
ny that acts flexibly and swiftly in today’s
Social issues from the perspective of
dramatically changing business environment,
Toyoda Gosei
delivering the highest levels of satisfaction to
Provide both innovations in automotive customers worldwide through safety, comfort,
technology (BEVs, CASE) and a safe and secure Mid-Term Business Plan (2025 Business Plan) P32
well-being and the environment.
mobility society

Increasingly serious problems in the global Revenue ・・・ More than ￥1 trillion
Mid-term
●

environment Business,
targets ● Operating profit ratio ・・・・・・・ 8%

Changing values/diversification of work styles

Products （2025） ● ROE (Return on equity) ・・・10%
the fields of rubber and p
wledge in lastic
Fewer children/aging population Kno s
Providing value to stakeholders and society
Changes in company competitiveness with Deve
accelerating digital/IT transformation lop

New
s m
le

busi
ork

Natural environment

en
Sa

ness d
Increasing political instability
Global netw

t/
● Fast response to climate change
‒ Import/export regulations, cost of living/foreign

des

evelopment experiences
(Contributing to carbon neutrality, circular societies)
exchange fluctuations, instability in energy supply

Value chain ig n Shareholders, Investors

Unstable material supply due to Automotive
COVID-19 pandemic ● Stable, sustainable shareholder returns
● Provision of transparent IR information
Safety Systems P34
t
en
Pr

Employees
od

em

ct r
io cu
u

n r o Interiors and Exteriors P35 ● Active participation of a diverse workforce

P
Management capital P18 ● Stimulating and pleasant workplace environment
0
P2
2
M

Functional Components
P2

Management capital built up over more Co P36

es
at

mp Customers
than 70 years of company history ia tag
e)

as
er

lit e titiv e a d v a n Contributing to business growth, purpose

b
●

y
nt Weatherstrips P37
(B e
realization
us
Human in e ag em - Provision of safe and reliable products
ss ac
●

tivi tie s・M a n - Flexible response to business transformation

●
Manufactured Other areas P38
Suppliers
●
Intellectual
General Industry Products ● Sustainable, equitable and fair business dealings
●
Social and relationship TG Spirit / Sincerity, Activity, Unity P21 ● Mutual development based on mutual trust
LEDs /e-Rubber
●
Natural Re-S eco-brand Local communities, government
●
Financial Corporate governance / ● Achieving a safer and more comfortable mobility
society
Risk management / Compliance P68
● Contributing to stable community development

Higher sustainable corporate value from value creation cycle

16 17
 Contents About Toyoda Gosei Value Creation Story Value Creation Strategy Foundation of Value Creation Data

Management Capital
Management capital built up over a history of more than 70 years
Management capital is crucial to the sustainable increase of corporate value.
Toyoda Gosei cultivates management capital through repeated cycles of
value creation based on its management philosophy, investing capital at opportune times for
anticipated business opportunities and risks.

Human Capital A manufacturing workforce with diverse individual characteristics and Social and Building strong relationships with stakeholders through close dialogue
strengths to support corporate evolution and growth
Relational Capital In this once-in-a-century period of tremendous change, and instability in the
Toyoda Gosei operates 61 Group companies in 16 countries and regions around the international community, smooth cooperation with various stakeholders is
world. We will continue to evolve and grow through the collective efforts of our crucial to realizing our management vision. Toyoda Gosei will engage in careful
employees, who have diverse talents and values that differ in terms of nationality, dialogue with our stakeholders, and, together with these stakeholders, build and
gender, age, and lifestyle, as they display their full abilities. We promote the maintain strong relationships of mutual trust by providing value to society. We
creation of healthy and comfortable work environments where everyone can fully Number of suppliers will continue to steadily evolve even in the current harsh business environment.
Number of employees
demonstrate their abilities while experiencing personal growth. [Toyoda Gosei Co., Ltd.] ●
Dialogue with institutional investors (financial results briefings, small
39,511 ●

●
Percentage of employees outside of Japan: 76.3%
No. of female managers [Toyoda Gosei Co., Ltd.]: 30 772 companies ●
meetings, ESG briefings, facility tours, business briefings, and more)
Joint research with universities (Nagoya University, Osaka University,
●
Local executive percentage: 31.0% University of Tokyo, others)
●
Percentage of management who are mid-career hires [Toyoda Gosei Co., Ltd.]: 30.9%

Active Participation of a Diverse Workforce P58 Social Initiatives P54

Manufacturing Leveraging our global network and knowledge in the fields of rubber and
Natural Capital Initiatives for climate change and resource recycling that leverage our
Capital plastics for the timely provision of safety, comfort, well-being, and the
environment to customers around the world
environmental technologies and knowledge
Toyoda Gosei began full-scale environmental activities in 1993 with its
To meet the needs of our customers around the world in a timely manner, we have “First Environmental Action Plan” and we have been strongly committed to
established sales and engineering structures with close ties to each region and an environmental activities over these 30 years. Natural capital is the root of
optimal global production and delivery system. In addition, we are enhancing our materiality and outcomes, and by further advancing our cultivated knowledge
manufacturing capabilities through innovative advancements in manufacturing and technology in environmental conservation, and our knowledge in the fields
Number of locations methods and production equipment by leveraging our own knowledge in the fields
Total energy input
of rubber and plastics, we will achieve efficient resource investment and reduction

61companies of rubber and plastics, a strength we have cultivated for more than 70 years. Going
forward, we will introduce internal carbon pricing (ICP) to promote investment 2,361,000 GJ ＊ of environmental impacts, promoting both environmental and economic value.
●
Total material input: 40,305t　　　 Water resource input: 1,120,000㎥
●

decisions based on the balance between environmental and economic activities. ●

Renewable energy input: 34,000GJ
●
Capital investment: ￥49.7 billion ●
Percentage of production sites that have acquired ISO 14001 certification (environmental management): 100%

Competitive Advantages P20 * Gigajoule (1,000,000,000 joules) Materiality P22 Environment Initiatives P42

Intellectual Refining our research and development (R&D) capabilities to further enhance
Financial Capital Sound financial management that supports sustainable growth and increased
Capital our competitive advantage in new business development experiences corporate value
We are going through a period of tremendous change with the transformation of Sustainable growth requires continuous investment in facilities, R&D, and human resources.
the automobile. Grasping the needs of customers and society as early as possible Toyoda Gosei will maintain the stability of its financial base through sound financial management
and possessing the technological capabilities that will be needed in five to ten years and achieve continuous growth by effectively using financial capital with the necessary timing.
will be important, as R&D capabilities are the source of growth for the company. In the future, by introducing new management indicators such as ROIC, promoting decision-
Toyoda Gosei has invested approximately 100 billion yen in R&D over the last three making that emphasizes investment efficiency, and improving capital efficiency through the
R&D expenses Credit rating
years for new and existing businesses. We will continue to enhance our competitive establishment of a system for global and nimble financing, we aim to increase corporate value

¥33.5 billion advantage by utilizing IP landscaping and other means to improve the accuracy and
speed of decision-making in new business development. A+（R&I） through multifaceted financial management that emphasizes capital efficiency.
●
Shareholders’ equity: ￥428.8 billion
●
No. of developers and engineers [Toyoda Gosei Co., Ltd.]: 2,327 ●
Interest-bearing debt: ￥173.6 billion
●
No. of patents held: 4,829 ●
Ratio of equity attributable to owners of parent to total assets: 49.9%

Competitive Advantages P20 Financial and Non-Financial Highlights P86 Message from the Officer in Charge of Finance P40 Financial and Non-Financial Highlights P86

As of March 2022

18 19
 Contents About Toyoda Gosei Value Creation Story Value Creation Strategy Foundation of Value Creation Data

Competitive Advantages TG Spirit

We aim to achieve sustainable corporate evolution and growth by addressing materiality issues based on the three The Toyoda Gosei Group established the “TG Spirit” as a common set of values toward work. As work styles diversify
competitive advantages we have built up over 70 years of business: knowledge in the fields of rubber and plastics, a and values change, the TG Spirit is an important source of cohesion and strength for our approximately 39,000
global network, and new business development experiences. employees working in 16 countries and regions around the world, who differ in terms of nationality, gender, age, and
lifestyle, and will help them to demonstrate their collective strength through teamwork. We will aim for sustainable
Knowledge in the Fields of Rubber and Plastics corporate evolution and growth by carrying into the future the “attitudes and ways of thinking that should be valued in
performing our work.” These are things that have been passed down to us and that we will continue to treasure even in
Materials and manufacturing methods that give our products an edge today’s rapidly changing environment.
Our research and development goes back to the rubber research division established by Kiichiro Toyoda, the founder of
Toyota Motor Corporation. We are leveraging the foundation of our continuous basic research to create materials and
manufacturing methods that anticipate the needs of our customers and the times to enhance our competitive advantage. Making the Ideas Passed Down Our Own, and Passing Them on to the Younger Generation
In-house development of materials Weatherstrips Functional Components Non-automotive We believe that sharing this TG Spirit throughout the entire Toyoda Gosei Group will help us to become one team,
▲

Our departments specializing in development ●

Opening trims / weatherstrips ●
Plastic fuel filler pipes transcending differences in nationality, gender, age, and lifestyle.
Formulation
and analysis for the rubber, plastic, and sur- ●
Door glass runs
design
●
Plastic turbo ducts
e-Rubber
face-treated materials that are most suitable for ●
Brake hoses
our products are working to solve development
issues from the perspective of materials. We Rubber and plastic Denaturation /
1 Customer Oriented 2 Challenge 3 Ownership
Mixing
then use these strengths in material and com- materials reformulation /
technology
surface treatment polymerization Think from the customer’s perspective Aim high, be resolute in the face of difficulties Be responsible and proactive
pounding technology, in analysis, observation
LEDs (package)
and evaluation technology, and in simulation How can we help customers get what We will aim high, set ambitious goals and Each and every TG employee is encouraged
technology to create various products beyond Radiator grilles they want? work relentlessly toward achieving them to feel a sense of ownership for the
●
Plating / painting / Steering wheels
the framework of automotive parts.
●
●
Instrument panel modules coating design no matter what the difficulties may be. products that leave our doors.
and components Airbags
Our knowledge in the fields of rubber and plastics
●

may be considered our identity, and is an important Interiors and Exteriors Safety Systems GaN power devices
foundation for sustainable corporate growth.
4 Continuous Kaizen 5 Respect 6 Teamwork
Global Network Never be satisfied; improvement never ends Respect for individuals and their perspectives Help each other, grow as a team

A value chain leveraging our network of 61 Group companies in 16 countries/regions Using the approaches of genchi-genbutsu (go We will maintain respect for the individuality We will combine our strengths within
and see) and genjitsu (activities based on the and perspectives of each person, be humble teams, between divisions, and between
Following our entry into the “global car” market, we have established more than 40 Group companies in about 20
actual situation) and asking why five times, we in our dealings with others regardless of Toyoda Gosei Group companies to make
years. Utilizing this global network, we deliver reliable technology and quality in a timely manner based on an optimal will constantly strive to bring our operations nationality, gender, or rank, and always try One TG a reality.
production system with a view to customer needs and political conditions. and products to the next highest level. to learn from each other.
Assisting vehicle development through close coordination Stable procurement through global supply chain
We support speedy vehicle development through close coordination Our partnership with more than 700 global suppliers (Tier 1)
Development /
design
between overseas sites and engineering, development, and production Procurement ensures stable procurement of parts and materials even in the The TG Spirit Supports Value Chain Activities
engineering from our World Headquarters. In this way, we can respond midst of geopolitical risks, for the timely delivery of products
to vehicle development by automakers at their overseas locations. tailored to our customers' needs. Development / Creating a new future with a spirit of Procurement Respect for our suppliers and maintaining
design taking on challenges open and fair relationships with them
Best production networks globally Customer-oriented sales activities
We have established a stable production and delivery system We have established sales structures in each region to meet the As one of my social problem-solving innovation We hear that “the downstream process is the
Production based on production near to our customers, and by building a Sales needs of our customers around the world, quickly identifying the activities, I am working with startup companies customer,” but when I was a young man in the
foundation for our production backup and support systems in needs of local customers in other countries and working with the to develop new areas of technology. We are Purchasing Division I was often taught that “the
four regions (Japan, the Americas, Asia, Europe/Africa). World Headquarters to address them in a speedy manner. conducting social demonstrations using microwave supplier is the customer.” I have been involved in
power transfer, image-based AI, and other purchasing since I joined the company, and I have
technologies. What is important here is to have a always approached this with an attitude of respect
spirit of taking on challenges and to be looking for our suppliers. We think together with them
New Business Development Experiences toward the future. Startups are incredibly fast in and provide thorough support as their contact
business, including development and decision Yoshiki point for Toyoda Gosei, no matter what kind of Hiroaki
Innovative products making. When we ourselves focused on speed Nakamura problems or questions they may have. As the Watanabe
with full commitment to the work, we found more General Manager business environment becomes increasingly harsh, General Manager
In line with our company creed, “Boundless Creativity and Social Contribution,” the many experiences we have gained and more colleagues who support us. I would New Value
I hope to overcome challenges together with our SS Parts Purchasing
Development Dept., Purchasing
over our 70-year history in successfully developing products that meet the needs of the times, such as for safety and like to continue to open paths to a new future by Division suppliers and further deepen our relationship as Division
the environment, form the foundation for our spirit of taking on challenges, as expressed in the TG Spirit. We will continuing to take on challenges without fear. equal partners to enable mutual growth.

continue to evolve further as a company by taking on challenges related to social issues while embracing the mindset
passed on to us from our predecessors. Kaizen is linked to all aspects of “Customer Oriented,” the starting point
Production Sales
the TG Spirit of sales
World firsts
▲

I believe that the TG Spirit is a guideline for About 15 years ago, at my own request, I was
doing things better for our employees and our transferred from a secretarial position to a sales
stakeholders, including our customers and position. The first time I was in charge of adjusting
communities. I believe that “continuous kaizen ” is sales prices, I discovered that the job was more
Millimeter wave Lightweight Plastic fuel the keyword that encompasses all aspects of the difficult and demanding than I had imagined. In
SRS curtain airbags Blue LEDs compatible emblems opening trims filler pipes
TG Spirit. We must make daily improvements part this situation, I tried to be “Customer Oriented,”
of our own work responsibility, work together and specifically, I adopted an attitude of give and take,
New endeavors Medicine / Health Environment
▲

respect other team members to accomplish what understanding the other person's point of view,
for social issues we cannot accomplish alone, and boldly take on Michelle and keeping my promises. By doing so, I gradually Sukanya
challenges to bring joy to our stakeholders through Patrick gained the trust of customers and my work began Soongsanit
our improvements. With this mindset, I will do Vice President to go smoothly. I would like to pass on these real- General Manager
my best every day to contribute to Toyota Gosei's Interior/Exterior Div. life experiences and realizations to new members. Sales Department
TGMO TGAS
growth.
e-Rubber UV-C LED High pressure hydrogen tanks Power devices Re-S eco-brand

20 21
 Contents About Toyoda Gosei Value Creation Story Value Creation Strategy Foundation of Value Creation Data

Materiality (Key Issues)

With the company creed of “Boundless Creativity and Social Contribution” we aim to achieve both economic
and social value by contributing to the realization of sustainable societies through the growth of our company.
In order to achieve our 2025 Business Plan, we are working on materiality items that are of high importance
to us and to which we can make a particular contribution, from among various social issues, including social
forecasts and SDGs, which are envisioned based on the changing business environment.

Materiality Identification Process

STEP 1 Selection of materiality candidates Most crucial fields in
Related social issues Materiality (key issues) Major initiatives
related SDGs
Issues to be considered are identified (59 items)
by sustainability advocates appointed from related Respond to the Development of new products for BEVs（Feature 2 P.26）

▼
●
Development of advanced safety technology, higher added value of steering wheel grips
divisions, with reference to social issues, market transformation of ●
Next-generation decoration (decorative lighting, hot stamps, etc.), forward-looking interiors
and social trends, GRI standards, SDGs, materiality automobiles ●
Cooling system for battery cooling and heat management
of other companies, and other considerations. Provide both innovations Development and sales of airbags that deliver safety, comfort, well-being and the environment to all（Feature 1 P.24）
Achieve a safer and more

▼
in automotive Enhanced protection performance
comfortable mobility
●

technology (BEVs, CASE) Development of crash safety systems in combination with seatbelts
Business activities
●

STEP 2 Evaluation/analysis of materiality candidates society by reducing the Development of various simulation technologies
and a safe and secure ●

number of traffic fatalities Creation of a production network for the spread of airbags in developing countries (India, Southeast Asia, etc.)
mobility society
●

Analysis and evaluation based on importance to

Building environmentally-friendly businesses leveraging our knowledge in the fields of rubber and plastics
Toyoda Gosei (management philosophy, management ●
Expansion of material recycling, including reuse of plastic waste material and desulfurization and
capital, interactions with competitive advantages and regeneration（ P.47）

▼
Changes in company Development of products that use CNF-reinforced plastic（ P.26）
strengths) and importance to stakeholders (contribu-

▼
●

competitiveness with
tion to social issues, promotion of ESG activities) Create new businesses that Expand new businesses using our new business development experiences
accelerating digital/IT Development of hydrogen tanks for commercial vehicles（Feature 3 P.28）

▼
●

transformation utilize core technologies

Development of water purification units and air and surface sterilization using UV-C (deep ultraviolet) LEDs（ P.38）

▼ ▼
●

STEP 3 Validity evaluation by management

●
Development of GaN power devices (Ministry of the Environment CO2 reduction project)（ P.38）
●
Development of smart insoles using e-Rubber
The validity of materiality is evaluated by inter- Leveraging our core technologies for innovation: Corporate venture capital（Feature 4 P.30）

▼
●

Creation of products through company collaboration using recycling (expand Re-S brand)（ P.49）

▼
●

viewing outside directors, executives, and in-

vestors regarding the material issues identified, Group-wide global activities for carbon neutrality（ P.44）

▼
including specific processes. Contribute to decarbonized ●
Reduction of energy consumption with greater efficiency through daily kaizen and by innovating
production engineering using IoT, AI
societies by reducing ●
Aggressive use of renewable energy
Increasingly serious emissions of CO2 and other ●
Making lighter weight products for better fuel efficiency (minimize CO2 during use)
STEP 4 Materiality identification problems in the global greenhouse gases ●
Design for easy disassembly (promote recycling, minimize waste)
●
Facility investment decisions that balance economics and the environment through the introduction of ICP
Selection of priority themes through deliberation environment Contribute to circular ●
Horizontal deployment of measures to reduce CO2 emissions of suppliers
by management bodies societies by reducing waste Contributing to circular societies（ P.47）

▼
and water risks ●
Expansion of recycled decorative products, use of environmentally friendly materials
●
Reduction of water intake/promotion of recycling, upgrading of wastewater treatment facilities for cleaner wastewater
STEP 5 Review
Local activities through companies that grow together with the communities where they are rooted
Review of initiatives tied to company policies, ●
Business expansion and employment creation in developing countries
Coexist with local Activities to support nature (woodland maintenance, plant afforestation, river and wetland protection, etc.)（ P.50）

▼
confirmation by the Sustainability Meeting, and
●

communities ●
Contributing to the development of sustainable communities (environmental protection, social
regular review of materiality welfare, youth development, community crime prevention)（ P.67）

▼
Fostering a sense of unity between employees and the community through sports（ P.67）

▼
Changing values/
●
Management base

diversification of work Diversity & inclusion, safety, health management（ P.54）

▼
styles ●
Promotion of human rights policy and pleasant workplaces (creation of mechanisms, education, implementation)
●
Company policies, workplace improvement activities based on engagement surveys
Fewer children/ ●
Empowerment of women, hiring of people with disabilities, delayed retirement to promote the
Promote diversification activity of senior employees
Materiality aging population
Importance to stakeholders

in employment / ●
Ensuring safe and pleasant workplace environments
(key issues) Respect human rights ●
Health management to maintain and improve the health of employees
determination Quality that supports sustainability and strengthening of supply chain
Strengthened supply chain management（ P.64）

▼
●

Uniform global quality assurance（ P.66）

▼
●

Increasing political Strengthening of corporate governance systems for sustainable growth（ P.68）

▼
Enhancement of ESG initiatives with establishment of new Sustainability Meeting
instability Corporate governance as a
●

●
Risk reduction activities and thorough compliance centered on Internal Control Committee
company of integrity Strengthened response to global risks (stable procurement of parts and materials, operation
Unstable material ●

shutdowns related to COVID-19, cyberterrorism, etc.)

supply due to Thorough compliance ●
Strengthened corporate governance with development of business plan and management
COVID-19 pandemic systems in Group companies
Importance to Toyoda Gosei

22 23
 Contents About Toyoda Gosei Value Creation Story Value Creation Strategy Foundation of Value Creation Data
Feature 1

Building Transportation Societies That Protect

Irreplaceable Human Life In India, where the government is expected to mandate six
Although rapid advances are being made in automobile safety performance, traffic fatalities are on the rise in types of airbags on vehicles (driver, front passenger, left and
regions where the development of traffic infrastructure lags behind the widespread use of automobiles and safety right side & curtain airbags), we are forecasting 5-fold growth North China area
Tianjin Toyoda Gosei Co., Ltd.
equipment such as airbags are not widely used. Even in developed countries with well-developed transportation compared with the current level and are working with inflator
infrastructure and widespread safety equipment, the number of traffic fatalities is far from negligible. In recent suppliers for local procurement to ensure capacity and cost
Toyoda Gosei (Zhangjiagang) Co., Ltd.
years, global traffic fatalities have hovered around 1.35 million. To contribute to traffic safety and security, we competitiveness.
East China area
will continue to pursue higher-performance safety equipment and provide this equipment in many regions. In Southeast Asia, side-impact evaluations have been intro-
duced in assessments and the demand for airbags is increasing. New plant (rendering)
We have established a new plant in Indonesia, where market
South China area
growth is particularly strong and Japanese OEMs have a large Toyoda Gosei (Foshan) Auto Parts Co., Ltd.
share of the market, to increase our production capacity.
New plant in South China

Wider Use of Airbags Will Bring Us Closer to Zero Traffic Fatalities

2. Further Evolve Safety Systems
The World Health Organization (WHO) reports that in
1. Increase Production Capacity
recent years the number of traffic fatalities worldwide has Overall, the number of traffic fatalities in developed Airbags and other safety equipment must also evolve
trended at around 1.35 million annually. It is estimated that We will increase production capacity in regions with rising
demand for airbags countries has been on the decline. One factor is the to match the advanced design and changes in riding
between 2020 and 2030, the total number of traffic fatali- evolution of safer vehicle bodies in collisions and safety posture that are expected in the future.
ties will be approximately 13 million. One of the reasons for 2. Further Evolve Safety Systems equipment such as airbags. Automatic braking and driving Computer analysis is one of our strengths as a tech-
these high numbers, along with the lagging state of trans- We will improve the performance of airbags to cover injuries are also expected to evolve in the future, ushering in an nology that supports such development. Various vehicles
portation infrastructure and the high ratio of two-wheeled that conventional airbags do not protect against era in which many accidents themselves can be prevented. and the human body reproduced on computers are used
vehicles, especially in developing countries, is thought to be However, more time is said to be needed. Therefore, to simulate accidents. This allows us to predict how vehi-
We will also develop technologies and products to respond
that automobile airbags and other safety equipment have to changes in the environment the continuous evolution of airbags and other safety cles will be damaged and the types of injuries that will be
not been widely adopted. In India, Southeast Asia, and other equipment that protect passengers and pedestrians in the sustained by humans. This is then fed back into the devel-
regions where there is large growth in the automobile mar- event of a traffic accident is still needed. opment of new products. We also have connections with
No. of traffic fatalities by region (1,000 people) Breakdown by status of traffic fatality (%)
ket, demand for airbags will increase as regulations make In 2020, we began mass production of far-side airbags medical institutions and universities to improve reproduc-
airbags mandatory and initiatives advance to raise airbag India Automobile occupant
that prevent injury to occupants thrown to the opposite tions of the tolerance of the human body and increase the
adoption rates by strengthening assessments. China
Two- or three-wheeled vehicle
side of the vehicle during side impact collisions. We have accuracy of our analysis.
While the number of traffic fatalities is gradually decreas- Cyclists Pedestrians
continued developing these airbags since then, earning This technology makes it possible to analyze the
ASEAN
ing in western countries, Japan, and elsewhere, many issues North North high praise from many automakers. Our most recent entire vehicle as a system, rather than just the airbag
still need to be resolved before the number of fatalities can America America
far-side airbag is also compliant with the new, stricter itself, and to propose improved protection performance
be brought closer to zero. Through the continuous evolution Europe Breakdown Europe
assessments. that also combines the vehicle body and seat belts.
of airbags and other safety equipment, we want to increase Japan Japan
With the BEVs that will become mainstream in the We are also addressing social issues, such as the
the types of accident in which people can be saved. future, impacts on occupants during traffic accidents development of a steering wheel with an accelerator
(Reference) World Health Organization (WHO) Global Status Report on Road Safety 2018
In addition, safety systems of vehicles in the coming may be more severe in some cases due to changes in the lever for drivers with lower limb disabilities. This makes it
years need to evolve to accommodate changes. New Toyoda Gosei’s Forecast for Number of Automobiles Produced vehicle body structure. This will require safety equipment possible to accelerate the vehicle with the steering wheel
vehicles such as BEVs and micro-vehicles are appearing in the Market and Number Equipped with Airbags with high levels of impact absorption. alone.
on the market, and these vehicles differ from conventional Developed countries Developing countries
vehicles in the degree of impact on occupants and vehicle Product Development Roadmap Analytical Technology That Supports
No. of automobiles produced (million)

No. of airbags equipped (million)

No. of automobiles produced (million)

No. of airbags equipped (million)

body deformation in the event of an accident. At the same No. of airbags equipped No. of airbags
Product Development
equipped 〜2025 〜2030
time, advances in autonomous driving technology are
Far side impact Cyclist protection Rear seat passenger protection
expected to allow drivers more freedom in their actions and Far side airbag Cyclist protection airbag Wrap airbag
riding posture. 　　　　No. of
No. of automobiles produced automobiles produced
In response to these market trends and changes in
Regulations /
the environment, we have established two major growth Toyoda Gosei’s forecast for airbag usage rate based on Light Vehicle Production assessments
strategies for the Safety System business. (IHS, April 2021) and average annual growth rate

Also effective when people are sitting

freely during autonomous driving

1. Increase Production Capacity Worsened impact G force with BEVs Steering wheel for people with disability
Proposal of measures with seatbelt + airbag (attached accelerator lever)
systems with CAE analysis technology*
We are increasing our production capacity in China, India, Concept,” pursuing efficient manufacturing and utilizing Focus on injured parts of the body that are
and Southeast Asia to keep pace with the rising number of IoT and AI to monitor production status in real time from CASE not evaluated in regulations/assessments
by analytical medicine and engineering
airbags that will be installed in vehicles after 2025. anywhere. SDGs
collaboration using THUMS
In China, we established a new plant in the southern part In addition, we will promote jidoka (autonomation) to THUMS：Total HUman Model for Safety
Airbag
of the country (to start operations in summer 2023). It will ensure sufficient production capacity to meet increasing
Seatbelt
be the first SS plant to incorporate the “TG Advanced Plant demand.
*Analysis technology using computers in the machine design process

24 25
 Contents About Toyoda Gosei Value Creation Story Value Creation Strategy Foundation of Value Creation Data
Feature 2

Developing Products for BEVs Four Development Targets

A major shift toward electrification is taking place in the automobile industry, and we are developing new ① Environmental Friendliness Example of Lifecycle Assessment Efforts
products by bringing together the polymer material technologies we have cultivated in multiple business Since BEVs have a higher environmental impact than gaso-
fields and our technical capabilities in product design and production based on these technologies. In line-powered vehicles during the manufacturing stage, it is
Disassembly/ Material
developing products for battery electric vehicles (BEVs), we seek to create new value ahead of needs, important to make life cycle assessments. As a manufacturer recovery Nature-derived materials
while expanding the scope of our efforts to all of CASE and contributing to the creation of safe, secure, specializing in the polymer field, we aim to provide environ- Rubber desulfurization
and regeneration, etc.
and comfortable vehicles. mentally friendly products by improving their recyclability,
Product waste material Use
expanding the application in our products of rubber regen- Recovered crushed (driving) Design
parts, etc.
eration technology, and developing the use of naturally
Manufacture/
derived materials. Products containing cellulose nanofibers
distribution
are expected to reduce CO2 emissions through both weight Plated product waste mixing design
reduction and recyclability. We are also working on the Cellulose nanofiber mix
Glove box, etc.
BEV Trends practical application of natural rubber and vegan leather. Recycled material mix
Opening trim, etc.
Furthermore, we are striving to impart new value by using Use of cellulose
Lightweight reusable box, etc.
A joint statement was issued at COP26 in 2021 with Forecast Spread of Electric Vehicles recycled materials, for example by using waste materials
the aim of making all new cars sold in major markets (%)
from plated products to achieve new surface designs.
zero-emission vehicles by 2035, and all new cars
sold worldwide zero-emission by 2040. A proposal
② Extension of Cruising Range
by the European Commission in 2021 to ban the sale
of internal combustion engine vehicles in the EU by Toyoda Gosei is contributing to extended BEV cruising ranges mainly through heat
2035 was passed in June 2022, a move that further management, weight reduction and aerodynamic design. We have brought together engineers
accelerates the shift to BEVs by automakers worldwide. from our functional component business to develop cooling systems (for example, piping and
(Year) battery cases) that extract greater battery efficiency.
Gasoline Diesel Mild hybrid Hybrid PHEV BEV FCEV
We utilize our materials technologies to replace metal with plastic, to
(Reference) Prepared from a June 2022 report by the Boston Consulting Group
make plastic and rubber products thinner by improving the material strength,
and to make products lighter using our foam production engineering. In the
Toyoda Gosei's BEV Initiatives exterior product field, seamless design with no openings is needed to improve
Seamless exterior image with functional
aerodynamic performance. To achieve this design, we are differentiating consolidation garnish
The biggest challenge for the widespread adoption of nologies that span multiple fields in response to the our exterior products by enhancing their functionality, including decorative
BEVs is to extend their cruising range. Environmental changes in vehicles and needs associated with the shift technologies that allow radio waves and light to pass through. Battery cases
friendliness and user safety and comfort in response to to BEVs.
changes in vehicle structure are also important. Toyoda We have established the following four development
Gosei's technological potential lies in its plastic and targets based on Toyoda Gosei's business areas, and, ③ BEV-like Interior Space
Functional illumination
rubber material technologies and its product technol- viewing change as an opportunity, are promoting prod- The design trend for BEV interior spaces will be for forward-looking spaces that
ogies in each business area. We believe that we can uct development while optimizing resources to quickly differ distinctly from gasoline-powered vehicles. We aim to achieve such forward-
increase our potential for providing value with tech- respond to changes in the business environment. looking vehicle interior spaces through a combination of our strengths in interiors Thin instrument panel
and safety systems. For example, we are developing airbags and registers that
Development targets 2022 2025 Future Thin register
contribute to smart, thin instrument panels, and functional illumination such as
① Environmental friendliness Raise recycling rate, provide new value with recycled materials, use nature-derived materials driver notifications that use the entire cockpit including the steering wheel. Novel steering
wheel shape
Disassembly/
Our advanced steering wheels with a novel shape provide not only an ergonomic
Input of waste Water injection

Material
material (deodorization)

recovery
Exhaust gas
Disassembly/ Material treatment
recovery Water Water Water

Use (driving) grip shape for comfortable steering, but also reflect airbag technology that ensures
Cooling tank

Design
Use
Design

Rubber desulfurization and Cellulose nanofiber

(driving)

Manufacture/ Pulverization Desulfurization Deodorization Heat

the same occupant restraint performance even with a steering wheel shape with
Manufacture/

distribution regeneration technologies mixed products Use of natural rubber Vegan leather
distribution Reclaimed rubber
Desulfurization process

Thin instrument panel

② Extension of cruising range Higher electric mileage with lighter weight using plastic, better cooling around battery vertical cutouts. compatible passenger-side airbag
Cylindrical battery Conductor (bus bar)

Cooling plate Case

Image of seamless Transparent garnish
④ Safety Assurance
Cooling pipes Battery cases exterior (electromagnetic waves, light)
The increased strength of the parts around the battery with the shift to BEVs will
Compatible with simple front design, contributes to BEV-like design and aerodynamic performance affect how vehicle occupants are impacted during collisions. This will require better
③ BEV-like interior space Achieves occupant comfort and innovative feel protection performance from the restraint system. Toyoda Gosei ensures safety
Novel steering wheel shape with high-performance airbags and internal pressure control technology. We are
Interior Heat managing also developing systems together with Tokai Rika Co., Ltd. and Ashimori Industry
functional air conditioning Thin instrument panel
illumination (near occupants) compatible passenger-side airbag Co., Ltd. to achieve optimal protection performance for each vehicle model through Image of large, comfortable vehicle interior
the combination of airbags and seatbelts. In addition, we are developing wrap
④ Safety assurance Improved occupant protection performance in response to changes in impact G force
Higher around airbags that are integrated with seatbelts to ensure safety in response to
High performance Next-generation
airbag（far side） active vent Wrap performance future changes in cabin layout and occupant posture. Toyoda Gosei will continue to
airbag steering wheel Wrap airbag
Driver-side provide safety and security to all while adapting to various vehicle changes in the
airbags
Compatible with changes in interior layout, autonomous driving future, with the ultimate aim of zero fatalities in traffic accidents.

26 27
 Contents About Toyoda Gosei Value Creation Story Value Creation Strategy Foundation of Value Creation Data
Feature 3

Moving From “SStorage” and “U

Use” to “T
Transport”
and “P
Production” for Hydrogen Societies Toyoda Gosei’s History of CNG / Hydrogen Tank Development

Toyoda Gosei has completed the development of its first hydrogen tank for automobiles, and we began

Performance
Hydrogen tanks
2020
mass production at one of our own plants in 2020. In moving toward hydrogen societies, we started out in CFRP CFRP 70 MPa hydrogen tank UN certification acquired
the areas of hydrogen “storage” and “use”, which are familiar to end-users. In the future, we will spread this Plastic liner
Aluminum liner Highest level 6.2Wt% achieved
technology to the “transport” and “production” of hydrogen, further contributing to hydrogen societies. Aluminum cap

Aluminum liner tank Plastic liner tank 2016

(Toyoda Gosei specifications) 70 MPa hydrogen tank KHK certification acquired
・Liner thickness: Plastic liner is 30% thinner than aluminum liner
・CFPR thickness: Plastic liner is 20% thinner than aluminum liner 2014 Mass production of plastic liners for 1st generation Mirai
2007 Mass production of plastic liners
2004 35 MPa hydrogen tank KHK certification acquired

1995 2001 20 MPa CNG tank KHK certification acquired

Development of type IV CNG tank started
The Future of Hydrogen Societies Year

Hydrogen can be produced from a variety of resources, In Japan, initiatives are underway for the utilization
and has the characteristics of not emitting carbon di- of hydrogen as a key energy source so that carbon neu-
Contributing to Hydrogen Societies
oxide when used and enabling renewable energy to be trality can be achieved by 2050, and we are committed Hydrogen tank technology for passenger cars will be applied to commercial vehicles,
Hydrogen
stored, transported, and used. to contributing to these hydrogen societies.
STEP 1 “storage” and “use”
motorcycles, ships, railroads, and other forms of mobility.
We will offer variations in size, pressure resistance, and other characteristics to meet
the needs of our customers, and work to ensure performance in a variety of operating
The areas of “production”, “transport”, FCEV
Production Transport environments.
“storage”, and “use” of hydrogen Storage Use
In hydrogen societies, the need for hydrogen supply will emerge not only in relation
in societies near to end users
Hydrogen
(personal mobility, public transport,
transportation vehicles, construction FC forklift
STEP 2 “transport”
to mobility, but also for use at construction sites, homes, and many other places. Our
hydrogen tank technology will make it possible to load hydrogen onto “transport” vehicles,
machinery, household use) as well as increase the hydrogen loading volume and contribute to weight reduction.
Hydrogen station
Energy farm We will also develop portable, removable containers in which hydrogen can be easily
Hydrogen trailer
carried for use in a wide range of applications.
FC motorcycle
Hydrogen production As hydrogen usage grows, the need for more efficient, large-capacity hydrogen
Hydrogen engine vehicle
Further hydrogen
3
FC truck
storage will increase. We will further develop our existing hydrogen tank technology
FC bus STEP
Hydrogen power generation
“storage” to develop hydrogen tanks that are compact and capable of storing large amounts of
hydrogen.
Fuel cell unit
Solar panel
Gray hydrogen is currently the main method for producing hydrogen, and it emits
Hydrogen Hydrogen
Hydrogen
supply truck
tank Hydrogen production plant STEP 4 “production”
CO2 in the manufacturing process. There is a need to expand the production of green
hydrogen, which uses sunlight or other natural energy sources and water and does
FC railroad not emit CO2 in the production process. Toyoda Gosei will build relationships while
The areas of “production”,
Wind power
“transport”, “storage”, and leveraging its strengths to contribute to the realization of carbon-neutral societies.
Portable tank Construction “use” as represented by various
Large hydrogen ship
machinery, etc. types of energy production Renewable energy
plant at the national level Hydrogen production*4
Solar power Wind
Production Toyoda Gosei development items Hydrogen supply truck generation power

Hydrogen tank

Toyoda Gosei’s Involvement with Hydrogen loading pallet *3

(increased hydrogen Water
load)
Transport
Electrolysis tank
Using our strengths in polymer materials, we began In 2007, we began production of 70 MPa*2 plastic
developing compressed natural gas (CNG) tanks with liners for leased FCEVs, and in 2014 we began mass
Portable tank Hydrogen storage material
Hydrogen tank Green hydrogen
plastic liners for natural gas vehicles in 1995, and production of plastic liners for the first generation (removable) (higher hydrogen load)
obtained Japan's first certification in 2001. Tanks with of the Toyota Mirai. This was a stepping stone to the
Storage Decreased
plastic liners are lighter and less expensive than tanks development of hydrogen tanks, and carbon fiber no. of tanks
More variations
with conventional aluminum liners. winding and epoxy curing technologies were brought
In 2002, we began developing hydrogen tanks for in-house. In 2016, we obtained certification for 70 MPa
fuel cell electric vehicles (FCEVs) utilizing our CNG hydrogen tanks, and in 2020 we began mass production FCEV FC truck FC bus Non-automotive Home use

tank technology. This was recognized in a NEDO *1 of hydrogen tanks in one of our own plants for the Use
subsidized project. Hydrogen molecules are smaller second generation Mirai. This contributes to hydrogen
than those of natural gas, and the development of “storage” and “use”.
materials to prevent fuel permeation was a challenge. *1 New Energy and Industrial Technology Development Organization Today STEP 1 STEP 2 STEP 3 STEP 4
(National Research and Development Agency)
This was solved by modifying the plastic material. *2 Megapascal (unit of pressure) *3 Collection container in which several tanks are attached to frame　*4 Concept includes collaboration with partners

28 29
 Contents About Toyoda Gosei Value Creation Story Value Creation Strategy Foundation of Value Creation Data
Feature 4

New Value Creation for the Future Projects in Which We Send Toyoda Gosei Employees to Work at Startups
Another objective of the CVC is to broaden the outlook we have invested in order to make new discoveries and
As the environment undergoes drastic changes, we cannot expect to make significant progress if we continue
of the young employees who will be responsible for the gain insights by looking at our company from the start-
along the same path as in the past. In order to achieve sustainable growth, it will be necessary to create new
future of the company. For this purpose, we assign young up's point of view.
value by adding outside knowledge and resources to the management resources we have cultivated to date.
engineers not only to the dedicated CVC organization, So far, four young employees have been sent to
We will build new growth engines by incorporating outside capabilities while maintaining the foundations of
but also to various engineering departments that serve as these start-ups,
our existing businesses, continuing to take steps forward by changing the way we think and developing our
support organizations. They can experience new insights where they are
human resources in order to promptly respond to changes that may arise as we address these challenges.
by coming into contact with technologies and cultures performing new
from different industries that they have previously been work in environ-
unexposed to, through which we hope to foster new ments they have
ideas and flexible ways of thinking within the company. never experienced
We are also implementing a project in which young before. Together with S lab Inc. employees (Haruka Ibusuki,
employees are sent to work at the startups in which New Value Creation Division; front row 3rd from right)
Achieving Sustainable Growth
VOICE Haruka Ibusuki New Value Creation Division

To achieve sustainable growth for the future, we will businesses, such as blue LEDs. We have inherited this I was sent to work at S lab Co., Ltd., a 3D printer manufacturer, in April 2022. Here I work with management in looking
need to venture out from the path we have been on. foundation and culture of taking on new challenges at how to strengthen the company's organizational structure, as well as its management and sales strategies, with a view
For this we will need to develop new products and and will to pass it on to younger people in the compa- to a future stock listing. I am also involved in the implementation and follow up of plans that have been made. This
cultivate new markets. At the same time, we need to ny as we create new value for the future. industry is different, and I have had to work at a speed that I could not have imagined before. I felt a little lost at first, but
respond quickly, and within our limited available re- it has been a very valuable experience that I would not have known without actually working in a start-up.
sources, to various social challenges such as the SDGs What is “New Value Creation for the Future”?
and carbon neutrality. We are conducting new value creation for the future in
Currently, there is a gap between following the same which external forces (startups, others) and internal New Business Creation Process
path and sustainable growth. We believe that activities forces (young employees) serve as growth engines
to bridge this gap are what will lead to new value cre-
New value creation For the more effective use of internal capabilities, we them down (high production). Hypotheses are then
ation for the future. Two things are needed for this. One for the future established a new organization called the New Value formulated on customer value and market size, and
th

is how well we are able to utilize external forces, such as

w

Targets
Creation Division in January 2022. It was formed to verified step by step. Technical development target
ro

start-ups. The other is how to awaken the latent poten- ・Mobility

g

promote activities that create new value from within levels and how close we are to those levels are assessed
le

・Energy
ab

tial within the company, especially among young peo- uing on

n

Contin path ・Smart homes the company, rather than simply depending on external from multiple perspectives. Development themes
ai

ple, and how well that potential is displayed. m e

st

sa ・Healthcare
organizations through CVC. are then prioritized, resources are allocated to key
Su

Toyoda Gosei has a history of venturing into new ・Carbon neutrality

First, new business plans and ideas that different de- activities, and missing pieces are examined (external
partments had been working on independently were use). By following this process carefully and managing
brought together in the New Value Creation Division, the gates, we will eliminate rework, arrive at carefully-
Use of Corporate Venture Capital (CVC) which then centralized all the information. Next, the selected and high-quality themes, and accelerate new
processes for creating new business were clearly de- business creation.
For the effective use of external forces, we launched an invest in these companies, but also work with them on fined, and the items to be checked for each process
internal organization dedicated to investing in startups joint development. We will continue to promote activi- were clarified. At the same time, stage gates were set Stage Gate Review Steps in New Value Creation Process
(corporate venture capital; CVC) in January 2019. The ties to develop new products and cultivate new markets up to check each milepost. In this way, a system was New value creation process
idea is to accelerate our response to areas that cannot by utilizing technologies from different industries. started that enables timely decisions on whether the
be handled with limited internal resources or where necessary recovery and business development is possi- Information
Idea creation Core technology
Trial
Product Mass production,
Major Companies in Which We Have Invested organization/ (hypothesis
our knowledge and experience are limited, by leverag- ble and on efficient management. insights
(many ideas) development
testing)
development commercialization
ing the capabilities of startups and other outside orga- Content of
Category Name of company development In the design generation stage, a large number
▲ ▲ ▲
nizations. of ideas are proposed without trying to winnow Gate 1 Gate 2 Gate 3
Carbon Portable water
In these CVC activities, our investments are focused neutrality
WOTA Corp.
purification unit
in five key areas: mobility, energy, smart homes,
healthcare, and carbon neutrality. This is based on the Carbon
Slab Inc.
Pellet 3D printer
(for recycled
Business Idea Contest
idea of prioritizing fields that have high synergy with neutrality
materials）
our core technologies (automotive-related technolo- In trying to create new businesses, we started the creation for the future” has been cultivated and is tak-
Mobility Space Power Microwave power
gies such as rubber and plastics, airbags, and hydrogen Smart homes Technologies Co., Ltd. supply device Business Idea Contest in the hope of soliciting ing root within the company.
tanks; GaN-based semiconductor technologies such as ideas from a wider range of employees. This system We will continue
Visual recognition
blue LEDs). Mobility Global Walkers, Inc. AI model
encourages boldness in stepping forward with attempts to advance these
Three years have passed since we began these CVC development to actively propose interesting ideas that come to various measures
activities as one of our new growth engines. The current Development of power mind. These contests were launched in FY2021, and and actively pro-
E-ThermoGentek Co.,
Energy generation element the first one received 125 applications, far exceeding mote activities that
organization consists of a full-time staff of 10 and 30 Ltd.
that uses waste heat
young engineers also working in other departments. expectations. Two excellent ideas were selected and support sustainable
Development of
The annual budget is 1 billion yen, and investments Healthcare Provigate, Inc. medical device (blood research activities were begun. growth.
have been made in 16 startups to date. We do not simply glucose measurement) We see that an attitude and culture of “new value
During Business Idea Contest

30 31
 Contents About Toyoda Gosei Value Creation Story Value Creation Strategy Foundation of Value Creation Data

Initiatives and Progress in Our 2025 Business Plan

Mid-Term Business Plan (2025 Business Plan) Assessment of Our Current Status

To deal with the significant changes in the business environment and achieve sustainable growth into AlthoughsalesrevenueincreasedinFY2021, FY2021 Results
the future, Toyoda Gosei’s 2025 Business Plan for the medium term lays out three key areas that take mainlyduetotherecoveryofproductionfrom Consolidated By regional segment
advantage of the Toyoda Gosei Group’s cultivated strengths. We are making efforts tied to materiality thecutbackscausedbyCOVID-19theprevious
Operating profit ratio Japan Americas
that will provide both social and economic value. fiscal year, operating profit fell and the
operatingprofitratiodropped1percentage
point to 4.1%. This was due to significant
changesintheexternalenvironment,including
What We Aspire to Be Financial Objectives deterioratingrawmaterialmarketconditions,
13.8
(Billions of yen)
FY2017 FY2025 mainlyintheAmericas,poortrackingofthe
Toyoda Gosei aims to grow as a global com- ( J-GAAP) (IFRS) rapidproductionvolumechangesduetothe
pany that acts flexibly and swiftly in today’s More than semiconductor supply shortage, and rising
Revenue ¥806.9billion logisticscosts.
dramatically changing business environment, ¥1 trillion (FY)

▲
Lookingatourprogresstowardthemanage-
delivering the highest levels of satisfaction to Operatingprofit
5.1％ 8％
Asia Europe & Africa
ratio menttargetsofthe2025BusinessPlanunder
customers worldwide through safety, comfort, suchcircumstances,wefindthatalthoughthe

Revenue

Operating profit
well-being and the environment ROE(Returnonequity) 6.6％ 10％ global automobile production forecast(see
figureonright)islower thanwhen theplan
wasformulated,non-Toyotasales,mainlyofSS
products,andsalesofIEproductsaregrowing
steadilyandweareontracktoachievetherev-
Pillar Ⅰ Pillar Ⅱ Pillar Ⅲ enuetargetof1trillionyen.
(FY)
Atthesametime,asmentionedabove,our (FY) (FY)

operatingprofitratiofellby1percentagepoint
Innovative Outlook for Global Vehicle Production
Venture into innovation, Strategy for growing inFY2021fromthepreviousyear,duemainly
manufacturing at (million units)
new mobility markets/fields tothesluggishperformanceintheAmericas. When formulated Most recent
production sites Despitetheseharshconditions,weareaiming
for a rate of 5% in FY2022 through profit Semiconductor
New Technology, New Products Current Products Current Products improvement measures. After that we will
COVID-19
shortage

● Commercializationinnewfields ● Selectionandconcentrationof ● Globallystandardizedproduction continuetoincreaseaddedvalueandreduce

utilizingcoretechnologies businessresources know-howandprocesses costs,theentirecompanymakingconcerted (FY)

● Developmentofnewtechnologies ● Makecurrentproductsmorehighly ● Furtherimplementationofthe effortstoachieveourtargetoperatingprofit

andproductscopingwithCASE value-added ToyotaProductionSystem(TPS) ratioof8%.
● Strategiesofmodularizationand ● Businessplanexecutionthrough ● “Jidoka ”andmanpowersaving

systemproducts cooperationwithcustomersand utilizingIT

businesspartners ● Reductionofenvironmentalburden Future Initiatives to Achieve Management Goals
byproductionengineeringreform
Weareworkingfrombothshort-termandmedium-tolong- Thethirdistopushfurthercostimprovements.Wehave
Base of the Pillars termperspectivestoachieveanoperatingprofitratioof8%. always tried tomakecostimprovements,butnow weare
Enhancement of our business foundation Our short-term initiatives are to reinforce our business, puttinggreateremphasisonrationalizationthaninprevious
mainlyintheAmericas,focusingonthreekeyinitiatives. yearsbyimprovingprocesses,strengtheninglossreduction,
● Strengtheningglobaloperations● HRdevelopment
    The first is to reduce the impact of material market andreducinglaborneedsthrough“jidoka ”.Thisisalsobeing
● Businessactivitieswithintegrity
conditions.Weareworkingtominimizetheimpactofmaterial donewithaviewtowardfuturerecruitmentdifficulties.
marketconditionsbyreducingmateriallossesthroughyield Medium-tolong-terminitiativeswillbemadetoincrease
improvementandothermeasures,andreducingtheamounts addedvaluebyintroducinghigh-value-addedproductsand
ofmaterialsused,whilealsonegotiatingwithautomakersto high-performance airbags in the growing SS business(
Financial Policy

▲
passonsomeoftheprices.Thesecondisaflexibleresponse P.24),andnewhigh-value-addedproductsfortheBEVsthat
Shareholder Regardingshareholderreturnsforthetimebeing,wewillworkwhollytorewardshareholders tosuddenproductionfluctuations.Inthepreviousfiscalyear, willcomeintowideruse( P.26).Wealsoaimtodevelop

▲
returns basedonaconsolidatedpayoutratioof30%orgreater,fromavarietyofperspectives. wewereunabletorespondflexiblytosuddenfluctuationsin newbusinesses,takingnewtechnologiesandthedemandfor
productionvolume,resultinginincreaseddirectlaborcosts. carbonneutralityasopportunities.
Capital Tocounterthis,wearereceivingmoredetailedinformation    In addition, we willstrive toreduce costs throughour
Wewillsecure50billionyenbyFY2025asfundingforcapitalinvestmentforgrowth. onproductionplansfromautomakersthaneverbefore,while manufacturinginnovationstrategy( P.39)andaswitchto
investment

▲
alsooptimizingtheallocationofpersonnelintheproduction low-costmaterialswithlowCO2emissions,aswellasareview
Cash Inviewoftheprevailingcircumstances,wewillsecurecashreserves*ofconsolidatedmonthly process.We aremakingimprovements to ourproduction ofourbusinessportfoliomixtoachievethetargetsinour
turnoverplus30billionyenincludingfundstocoverrisk. systemsothatwecanreceivethebenefitsofincreasedsales 2025BusinessPlan.
reserves *Short-termborrowings（lessthanoneyear)areexcluded.
whenproductionstabilizesinthefuture.

32 33
 Contents About Toyoda Gosei Value Creation Story Value Creation Strategy Foundation of Value Creation Data

Initiatives and Progress in Our 2025 Business Plan

SS Business Area ●
P
Issues
 roductdevelopmenttocorrespondtomore IE Business Area
Issues
 evelopmentofproductsandproductionengineering
D
●

typesofaccidents thatcapturestrendsindesignandfunctionalneeds
●
 evelopmentofnetworktohandlegrowing
D Lowercosts,higherproductivitywith“jidoka ”and
●

globalmarket productionengineeringimprovements
With our abilities in product development ●
 roductdevelopmenttokeepupwiththe
P We will expand our business by developing ●
 upplyingoptionalpartsthatcorrespondto
S
using world-class CAE analysis technology,＊1 changesinautomobiles products and production engineering that diversifyinguserneeds
we will provide high-quality, low-cost airbags meet performance requirements that are
to all regions to help solve social issues and Strengths changing with CASE, and by developing Strengths
achieve business growth.
●
 roductdevelopmentusingworld-classCAE
P D
 evelopment,productdesign,andproduction
●

environmentally friendly materials and

analysistechnology engineeringabilitiestoachievevariousdecorations,
*1Computer-aidedanalysistechnologyinthemachinedesign ●
 evelopmentandproductionlocationsthat
D manufacturing methods and adopting them suchaspainting,plating,LEDillumination,and
process.
coverexpandingregions surfaces,andmechanicalproductswithhighquality
at our production facilities.
●
 bilitytoproposesystemswithperipheral
A ●
 lantsthathavethelatestproductionengineering
P
componentsaddedtoairbags forourmainmanufacturingmethodsofpainting,
plating,moldingandmore.

Key Initiatives in FY2021 Key Initiatives in FY2021

Innewproductdevelopment,webeganmassproductionofairbagsthatprotectpedestrians,who Takingadvantageofourproductdesignandproductionengineeringcapabilitiesthatgiverisetoa
accountforthemajorityoftrafficfatalities.Theairbagscoverrigidsectionsofthevehicle,such widerangeofhighqualitydecorativetechniquesandproducts,wedevelopedanewlacquerblack
asthefrontpillarsandthelowerpartofthewindshield,thatcaneasilyleadtofatalinjuries.By plating thatcombinesalustrous feelanddeepblackcoloring,andanLEDilluminatedemblem
optimallyadjustingtheinternalpressureforeacharea,theairbagsreduceimpactstothehead. thatcontributestotheforward-lookingdesignsuitedtoBEVs,thefirsttobeadoptedinJapan.In
Theworld-classCAEanalysistechnologyusedinthedevelopmentofthisairbaghasalsoshownits addition,tostrengthenourproductionnetwork,weenlargedplantsandintroducednewequipment
advantagesinthedevelopmentofBEVairbagsystemstoachievetargetperformance.Thiswillbe torespondtoincreasedsalesofradiatorgrillesandotherproductsatUSlocations,whichisakey
reflectedinfuturemass-producedBEVs.Inanotherarea,weestablishedanewplantinMexicoto overseasmarketforus.InJapan,westartedproductionatanewplantinMiyagiPrefecture.Itisa
increaseourairbagproductioncapacity.Thiswillbuildupourproductionnetworksothatwecan state-of-the-artplantthatcombinesefficientmanufacturingusingthelatestpaintingequipmentand
meetgrowingdemand. collaborativerobotswithenvironmentallyfriendlypracticessuchastheuseofrenewableenergy.

Pedestrianprotectionairbags Illuminatedemblems NewMiyagiOhiraPlant Newlacquerblackplating

Future Initiatives Future Initiatives

We aim to develop high-performance products and speed up development through Wewillproposeproductscompatiblewith thesensing technologynecessary forCASE,
collaborationwithseatbeltandinflatormanufacturerstomeetthechangesinthebusiness interiorproductsincorporatinghumanmachineinterfaces(HMI)andothertechnologies,
environment,suchasthespreadofBEVsandautonomousdriving. andnewinstrumentpanelscombinedwithairbags.
Inaddition,wewillincreaseourairbagproductioncapacityinthekeymarketsofChina, Thenewtrendforautomobilesubscriptionswillstimulatetheoptionalpartsmarket.
India, and Southeast Asia, where further growth in demand is expected. Preparations ToyodaGoseiaimstoincreasevaluebyacceptingordersformass-producedproductsand
areunderwayfortheestablishmentofanewplantinSouthChinawithatargetedstart optionalpartsinsetsthroughintegratedplanning,andmeetingtheneedsforembellished
ofproductioninthesummerof2023.The“TGAdvancedPlantConcept”willbekeyto interiorsandexteriorswiththeuseofadvanceddecorativetechnologies.
operationsatthenewplant.Thisconceptwillthenbesequentiallyintroducedatother Wewillalsogrowourbusinessinlinewithenvironmentalconsiderationsbyutilizing
globallocations. environmentallyfriendlyandrecycledmaterialsanddevelopingcleanplants,facilities,and
manufacturingmethods.

34 35
 Contents About Toyoda Gosei Value Creation Story Value Creation Strategy Foundation of Value Creation Data

Initiatives and Progress in Our 2025 Business Plan

FC Business Area ●
D
Issues
 evelopmentofBEVlowCO2emissions WS Business Area ●
Issues
 stablishmentofsustainablesealproduct
E
products(nature-derivedmaterials,material businesswhileusingrubbermaterialswith
recyclingapplications,lighterweight,more) highCO2emissionsandthataredifficultto
●
 emainingfuelsystemproductdevelopment
R recycle
We aim to achieve further growth by ex- andproductdevelopmentforBEVswhile We aim to contribute solutions to social ●
 eetingtheneedsforgreaterquietnesswith
M
panding global sales of fuel system products ensuringproductionresources issues and ensure reliable profits through electrificationwhilealsoloweringproduct
cost
that reduce vehicle weight and meet emis- product development and manufacturing
sion regulations, building a development and Strengths activities centered on quietness technology
●
 nvironmentallyfriendlyproduct
E Strengths
production network for products to be used and a carbon-neutral, circular economy.
developmentthatleveragesourknowledge ●
 ubberdesulfurizationandregeneration
R
on the electric vehicles of the future, and inthefieldsofrubberandplastics technology
new environmentally friendly businesses. ●
Technologyandmanufacturingtoproduce P
 roductdevelopmentabilitiesandevaluation
●

importantsafetyproductswithhighquality technologyabilitiesthatcontribute
●
Globalsupplynetwork toimprovedquietness,leveragingour
knowledgeinthefieldsofrubberandplastics

Key Initiatives in FY2021 Key Initiatives in FY2021

Wearepromotinganall-roundstrategytogrowglobalsalesofplasticfuelfillerpipesandfueltank To improve profitability, we are seeking to reduce costs through production lines that are
peripheralcomponentsforgasolineandHEV/PHEVvehicles,andinvestingresourcesinadvanced automatedanddonotrequirehighskilllevels.
developmentandfacilitiesinvestmentforBEVsandFCEVs. WearealsoreducingwasteandCO2emissionsbyreusingrubberwasteintheplantwithour
Carbonneutralityinitiativesincludedesignandmanufacturingmethoddevelopmentutilizing rubberdesulfurizationandregenerationtechnology.Toraisetheaddedvalueofourproducts,we
knowledge from our strengthsin the field ofrubber andplastics to achieve weightreduction havebeenworkingcontinuouslywiththetestingdivisiontodeveloptechnologyforquietness.
throughthinnerwallsandtoreplacemetalwithplasticmaterials. Weidentify vehicleweaknesses thatcontribute tolackofquietness,anddevelopandpropose
quietness-enhancingproductsbyimprovingtheseweaknesses.InFY2022,wearestartingmass
productionofdoorglassrunsthatwillbeusedontheLexus.

Future Initiatives Power

Gasoline HEVs Previous product Developed product
trains BEVs FCEVs
Wewillpursuebusinessexpan- vehicles PHEVs 1
Functions 3 Interior Interior
sioninalldirections,including
the development oflow-cost
fuelsystemproductsforsealed
tanksystemsforHEVs/PHEVs,
High pressure
coolingpipeandbatterypack hydrogen tanks Higher
products for BEVs, and full- 2 sound
Storage / Fuel tank
Exterior insulation Exterior
scalemassproductionoftanks control / peripheral parts Changes
forFCEVpassengerandcom- supply Battery Doorglassruns(dottedline)

mercialvehicles. cases Noise Noise

   With a view to achieving
carbonneutrality,wewillseek Plastic fuel filler pipes
theeffectiveuseofrubberre- FC stack manifolds Future Initiatives
sources through our original Tocontribute to a carbon-neutral, circular economy, we aim toimprove the quality of
desulfurization andregenera- Electric vehicles recycledrubberandincreaserecycledrubberproduction.Atthesametime,wewilllook
tiontechnologyandtheuseof havehighcooling
intoswitchingtoplasticforsomeproductsforevenlowerCO2emissions,dependingonthe
needs, and pipe
naturallyderivedandrecycled Cooling Growing lengthis about productcharacteristics,andworktoincreasetherecyclingrate.
materialsutilizingourknowl- volume four timesthat     We also aim to improve the profitability of this business overall by developing
ingasolinevehicles
edgeofpolymermaterials. technologiestoexpand therangeofuses forrecycledrubberandplasticmaterialsand
Cooling pipes
developingsealstructuresthatwillenableustomaintainhighquietnessperformanceand
costcompetitiveness.

36 37
 Contents About Toyoda Gosei Value Creation Story Value Creation Strategy Foundation of Value Creation Data

Initiatives and Progress in Our 2025 Business Plan

Life Solution Business Issues

 xpansionandincreasedsalesofindustrial
E
Manufacturing The new Miyagi Ohira Plant was established under the TG
Advanced Plant Concept banner. Evolution is also continuing
Innovation Strategy
●

machinerypartsandtheLEDbusiness at the expanded Seto Plant and a new plant in South China
In the non-automotive area, we are expanding ●
 cceleratedestablishmentoftechnologyfor
A to double productivity and halve CO2 emissions.
earliercommercializationinnewfields
our UV-C and other LED business and working
toward commercialization in power semiconductor Strengths
devices and other new fields. ●
KnowledgeinLEDfield,materials Aims of the Manufacturing Innovation Strategy
●
Industry-academia-governmentcollaboration
TheTGAdvancedFactoryConcepthasbeenestablishedtorespondtovariouschangesintheenvironment,suchasdiversifyingcustomerneeds,
thegrowinglaborshortage,andstricterlawsandregulationstocopewithglobalwarming,andtoensurethecompetitivenessoftheentire
companyforcontinuedgrowth.Itincorporatesthreeconceptscenteredonthehighproductivitysmartfactoriesthathavebeendeveloped
UV-C LED Business
basedontheToyotaProductionSystem.Wehavebeensteadilyputtingthisconceptintopracticeaswemovetowarddoublingourproductivity
Key Activities in FY2021 and Future Initiatives andhalvingourCO2emissions.
Thefirstconceptisthatofa“virtuousfactory.”In-processlocationinformationandmanufacturingconditions
WelaunchedseveralnewUV-CLEDproductsinFY2020inresponsetoCOVID-19pandemic,andarenowdevelopingand arelinkedbydatadowntotheindividualproduct;evenhumanintuitionandknow-howareconvertedto Factory where
marketingvariousproductsinthethreeareasofairsterilization,waterpurification,andsurfacesterilization.Intheair digitaldata.WiththeuseofAI,wecandeliversafetyandsecuritytoourcustomersbynotcreatingorpassing everyone can work
with vigor
sterilizationfield,westartedwithaUV-Cspacedisinfector,whichtrapsbacteriaandvirusesinafilterandeliminatesthem ondefects.Thesecondconceptisthe“cleanfactory.”Wewillminimizeenergyconsumptionthroughprocess
byirradiationwithUV-CLEDs,andthenintroducedacompactUV-C innovationfocusedonintegrationanddownsizing,withanemphasisontheheatingprocessforourmainstay Clean factory
Air disinfection Surface disinfection
personalairdisinfectoranddeodorizer,whichalsohasadeodorizing plasticsandrubber.Thethirdconceptisthatof“afactorywhereeveryonecanworkwithvigor.”Tediousor Virtuous factory
function.Wearecurrentlydevelopingnewproductstofurtherexpand heavytasksareautomatedthroughtheuseofautomatedconveyance,automatedvisualinspections,and
Smart factory
ourproductlineup.Inthefieldofwaterpurification,wesellaUV-C collaborativerobotssothatworkerscanconcentrateontasksthatcanonlybeperformedbyhumans,suchas
waterpurificationunit,andinthefieldofsurfacedisinfection,wesella maintenanceimprovements.Thiswillincreasethesatisfactionandmotivationofskilledworkers. TG Advanced Factory Concept
UV-CdisinfectionboxandaUV-Chigh-speedsurfacedisinfectionunit. UV-Cspace UV-Cpersonal UV-Chigh-speedsurface
Wearedevelopingnewproductsintheseareasaswell. disinfectors spacedisinfector
anddeodorizers
disinfectors
Key Initiatives in FY2021
Tomakeiteasierforthegeneralpublictopurchaseourproducts, Water purification WOSHportable
wehavestartedanonlinestorewheresomeofourproductscanbe washstands ThenewMiyagiOhiraPlant,whichbeganproductionoperationsinJuly2022,isthefirstplantlaunchedunder
purchased directly over the internet.We will continue to develop theTGAdvancedPlantConcept.ItembodiestheTGAdvancedFactoryConceptinthethreekeyareasof(1)
UV-CLEDswithhigheroutputandlongerlifeandexpandtheuseof “jidoka ”andlaborsavings,(2)carbonneutrality,and(3)factoryDX,andwillhelptoachievesequential
UV-CLEDstofacilitieswheremercurylampsareused,suchaswater UV-CLEDwater productionandreducedper-productCO2emissionsbytakingadvantageofitslocationclosetothecustomer.
purificationunits *SoldbyWOTACorp.
purificationplants,inordertoprovidesafeandsecurespaces.
NewMiyagiOhiraPlant

（1）“Jidoka ” and Manpower Saving （2）Carbon Neutrality （3）Factory DX

Power Device Business Smart Vigor Smart Clean Smart Virtuous

Key Activities in FY2021 and Future Initiatives Collaborative robots perform everything from parts Inadditiontotheuseofsolarpowerintheplant,all Eachproduct,frommaterialintroductiontoshipment,canbe
assemblytotransfertocarts.Sequentialproductionis moldingandsetupmachinesonmoldinglineshave tracedwiththeuseofQRprinting.Thedataarethendisplayed
achievedincombinationwithversatilefixtures.Automated beenconverted toelectricpower.In thepainting onARglassestodeterhumanerrorssuchaspickingupthe
Powersemiconductordevicesareusedforpowercontrolinindustrial World’s
largest Made substrate of more than guidedvehicles(AGVs)handleallin-planttransport,and process, thepaintingboothhasbeenmademore wrongparts.Differentconditionsarealsoconvertedintodata
equipment,automobiles,homeappliances,andotherapplications.We arelinkedwithIoTtoenableoptimaltransport.Productivity compactbyimprovingthepaintingrobot'srangeof andusedforimprovement.Productivityisincreasedby30%
class 6 inches in diameter
aredevelopingsubstratesandelementsforthesedevicesusingGaN improvementof30%isachieved[Smart],whilehumansare motion,resultingina20%increaseinproductivity [Smart]andthepassingonofdefectsiseliminated[Virtuous]
(Manufacturing method: Sodium flux)
materials.Currently,powerdevicesusemainlySiandSiCmaterials,but freedfromassemblyandtransportationwork[Vigor]. [Smart]anda30%reductioninCO2emissions[Clean]. bynotcreatingpointsofvariationbetweenhumans.
Thesize andqualityof the
withthesematerialsthereisaproblemoflargeswitchingloss.*Higher
grownsubstratedependson
frequency andhigherpower canbe expected with theuse of GaN theseedcrystal,andsolarger
materials.Weareconductingdevelopmentincollaborationwithindustry, diameterandhigherquality
academia,andgovernment,usingtheknowledgewehavecultivated seedcrystalsareimportant
inperformanceandcostasa
overmanyyearsinthefieldofblueLEDs.Inaprojectsponsoredbythe powersemiconductor.
TransportusingAGVs Partassemblyprocess All-electricmolding Paintingrobot UsingwirelessAR AutomaticQRprinting
withcollaborativerobots line glasses withalasermarker
MinistryoftheEnvironment,wesucceededinproducinghigh-quality
GaNseedcrystalsofmorethan6inchesinsize,amongthelargestinthe
Best Performance Range of Each Device
world,utilizingamethodofgrowingGaNcrystalsinliquidmetalmixed 10M
Future Initiatives
SiC,Ga2O3
withsodiumandgallium(sodiumfluxmethod). Higher frequency
Development area in Ministry

Withaviewtofuturecommercialization,weareacceleratingthe 1M of the Environment project ThenewMiyagiOhiraplantwasthestartingpointforTGadvancedfactories,

Power
andtheseactivitieshavecontinuedtoevolvewiththeexpandedSetoPlantanda
Output [W]

developmentofelements withimprovedcharacteristics,supplying 100k

conditioners
Electric
Toyoda Gosei’s

samples,furtherimprovingthequalityofseedcrystals,andincreasing vehicles development area newSouthChinaplant.Theywillalsobespreadtoexistingplantsaspartofour

(GaN)
thediameterofsubstrates.Wealsoaimtoenterthemarketfordata 10k Auxiliary
power supply restructuringinitiativesinJapanandoverseas.
centersby2025.Beyondthat,wearelookingtoapplythetechnology Server Inthefuture,wewillimplementmanufacturinginnovationswiththeidealof
1k Si power source
GaN on Si Higher power
toautomotiveapplications. realizingthe“TGOneFactoryConcept,”inwhicheachplantoftheglobalToyoda SetoPlant　*Expanded NewPlantinCentralChina
10k 100k 1M 10M
*Energylossestoheat,etc.generatedduringDC⇔ACconversion Operating frequency [Hz] GoseiGroupisoperatedaspartofonelargeplant. (Productionscheduledtostart (Productionscheduledtostart
inDecemberof2023) aroundthesummerof2023)

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 Contents About Toyoda Gosei Value Creation Story Value Creation Strategy Foundation of Value Creation Data

Message from the

Officer in Charge
of Finance
SS business, we will not only generate more added did not meet expectations. This brought about
Aiming to improve corporate value through new technology that meets changes discussions on fixed costs, especially in terms
in the business environment, but will also work to of footing the bill for depreciation costs. While
value by implementing financial reduce costs by automating as well as standardizing investment is expected to increase in growth areas
components. With more BEVs on the road, the part such as BEVs and the move to carbon neutrality,
strategies and completing the job of the vehicle where the battery is mounted will we will make decisions that place more emphasis
invariably need to be strengthened owing to the on investment efficiency through more stringent
to achieve the 2025 Business Plan nature of the vehicle chassis. Because of this, it is assessments on the recovery of fuel system parts,
predicted the impact on the occupants in the event etc., a market which is expected to contract. In
of a collision will be more severe, and as such, the addition to the conventional approaches of sales
airbags’ shock absorption will need to be improved. It growth and profitability, we will aim to achieve ROE
is also expected that compact BEVs will become more targets while improving profitability. We will do this
popular, but since compact cars require even greater by substantiating our investment efficiency in terms
shock absorption, it will be necessary to improve of the region, business, and product, using the new
Hiroshi Yasuda added value. In other businesses as well, while there is metric of return on invested capital (ROIC) as a
demand for futuristic designs and advanced interiors benchmark.
Director, Corporate Officer
that characterize BEVs, it is also necessary to improve
Chief of Corporate Strategy power consumption by reducing weight and improving Approach to Cash Reserves
Headquarters aerodynamic performance. Major changes are expected Next, I would like to talk about funding. From a global
in the business environment, but we see these changes perspective, while we see regions with robust capital
as business opportunities. As such, we will work to requirements, there are regions with a financing
improve profitability by leveraging Toyoda Gosei's surplus, resulting in an imbalance between regions.
strengths in balancing design and functionality, as well On a consolidated basis, both cash and borrowings
2025 Business Plan Initiatives can firmly enjoy the effects of increased sales. The third as our ability to make proposals. are used, which makes for a rather inefficient financial
is promoting cost improvements. We will aim to cut costs position. We will strive to improve capital efficiency by
Review of FY2021 Financial Results to a higher level than before by making improvements building a framework for flexibly diverting funds on a
The financial results for FY2021 were significantly to our processes, reducing losses, and benefiting from
Status of Financial Policies global basis led by headquarters.
a f f e c t e d by change s in the e x t er nal busine s s investments made to automate the manufacturing Globally, there is no change to our policy on securing
environment. In addition to soaring material and process, which we have been undertaking. Although —Responding to issues based on environmental changes
more than ¥30 billion in monthly turnover, including
logistics costs and rising wages, there were also the external business environment is likely to continue Toward an ROE of 10% funds for risk management after learning the lessons
sharp fluctuations in production volume due to the to deteriorate due to soaring material and energy To stably achieve capital efficiency in excess of our from the Great East Japan Earthquake.
semiconductor supply shortage, resulting in some losses costs, we will focus on these three themes centered on cost of equity, we are targeting a 10% return on
to the production system. The Americas in particular was the Americas, aiming for previous profit levels at an equity (ROE) under our 2025 Business Plan. To Lastly, regarding dividends, there is no change in our
greatly affected by changes in the business environment operating profit ratio of 5%. achieve this goal, we have quickly been reducing goal, stated in our financial policy, of a consolidated
with the profit margin of the entire consolidated region unprofitable businesses. For instance, we downsized dividend payout ratio of 30% or more. We will continue
dropping unavoidably by about 1 percentage point. Progress of the 2025 Business Plan the optoelectronics business, divested a German to work to meet the expectations of our shareholders
Next, I would like to discuss how the 2025 Business subsidiary, and closed our base in the U.K. As a from many different perspectives.
Initiatives for FY2022 Plan has been coming along. The plan itself is in its next step, improving profitability is imperative for
Although external factors will be the same or greater in final stages with only three years remaining. Despite us. We aim to achieve an ROE of 10% by improving
FY2022, we not only regard improving the profitability revenue in FY2021 of ¥830 billion, which is about the operating profit ratio through the proposal of In Closing
of our Americas business as our top management ¥170 billion lower than our target, we are largely on products that add value using changes in the business
priority, but will also work to improve profitability by track toward our sales target of ¥1 trillion with sales environment as an opportunity. At this time, we are in the final stages of our 2025
focusing on three key themes. growth centered on the Safety Systems (SS) and the Business Plan. We aim to achieve our goals by
The first is to reduce the influence of the materials Interiors and Exteriors (IE) businesses. Conversely, Approach to Capital Investment proposing high-value-added products centered on
market. As well as working to reduce material losses operating profit ratio remains in the 4–5% range owing Over the past few years, we have contributed to the SS business, where sales growth is expected, to
by improving yield, we will negotiate on prices, mainly to a significant drop in net sales in FY2020 because achieving our sales targets by aggressively making improve profitability.
for those materials that have no rules when it comes of COVID-19 pandemic and, as mentioned above, a capital investments mainly in the SS and IE businesses. Currently, the automobile industry is in a period of
to passing on costs. The second is dealing flexibly to deterioration in the external business environment The new plants we build will be smart factories that transformation and the external business environment is
fluctuations in production volume. In the previous fiscal in FY2021. There is a gap to our target operating double productivity and halve CO2 emissions. These changing, but we see this as a great business opportunity
year, we were unable to adapt to the sudden decline in profit ratio of 8%, so it is imperative that we improve smart factories will improve our competitiveness as for the Company. Looking ahead to 2025 and beyond,
production, leaving us with the burden of direct labor profitability. In the short term, we are looking to well as help us adapt to the predicted shortage of I would like to break away from the same initiatives we
costs. However, we are working to minimize the effects improve the profitability of our Americas business, workers and enable us to realize carbon neutrality. We have seen before and make every effort to enhance our
of labor costs by reviewing the number of personnel and in the medium to long term, we aim to improve will also work to expand globally, strengthening the corporate value while improving our portfolio mix.
allocated and better assigning employees based on our portfolio mix by introducing high-value-added foundation we are built on. We will continue to step up our investor relations
advanced forecasts. When production stabilizes in the products geared toward the growth areas of our SS However, due to the recent impact from COVID-19 as a transparent company, striving to gain widespread
future, we will establish a production system so that we business and battery electric vehicles (BEVs). In the pandemic and the sudden drop in production, sales favor to become the company of choice.

40 41
 Contents About Toyoda Gosei Value Creation Story Value Creation Strategy Foundation of Value Creation Data

Taking on the challenge of carbon neutrality

Environment
and a circular economy with the concerted
strength of the Toyoda Gosei Group term view to the year 2050. As a roadmap to achieve Action Plan to guide our initiatives.
that, we have set targets for 2030 (Targets 50 & 50) as Environmental action plan
Global warming and the problems of resource depletion and waste that result
milestones and formulated a five-year Environmental https://www.toyoda-gosei.com/csr/environmental/report2/
from mass production and disposal have become issues common to the entire
world. Under the slogan of “A Greener, Richer World for Our children,” Toyoda
Gosei is accelerating Group-wide initiatives to achieve a carbon-neutral and Environmental Organization
circular economy as soon as possible, fully leveraging our strengths in rubber
Our medium- and long-term policy and key action energy use, waste products and preservation of the
and plastic polymer technology in both production and products.
items are discussed and decided in a Carbon Neutrality environment. In this way, environmental preservation
and Environmental Committee chaired by the and management activities are conducted from an
company president. The Committee consists of three expert perspective. Liaison meetings have also been
subcommittees in the areas of products, production, established to share information with domestic and
Contributing to Environmental Preservation and quality. In the area of production, a production international Group companies.
and environment subgroup has been established to A carbon neutrality project was started in FY2021
Through All Our Business Activities strengthen environmental activities over the entire to accelerate initiatives over the product lifecycle. The
manufacturing process. The above subcommittees project is headed by the president and with outside
Basic Philosophy are further broken down into working groups that directors as advisors and the managers of related
promote and manage areas such as reductions in divisions as members.
The Toyoda Gosei Group formulated its 1st Environ- tect the environment.
Environmental Organizational Structure
mental Action Plan in 1993 based on its environmental Globally, we have set integrated environmental
policy, and since that time has been actively confronting functions in Japan and the regions of the Americas, Liaison Committee for
Carbon Neutrality Environmental
Carbon Neutrality Project
environmental issues. In February 2016, we announced China, Southeast Asia, and India. The Group is also and Environmental Products and Technology Environment Communication
Subcommittee (meets as needed) with Domestic Affiliates
our TG 2050 Environmental Challenge, and have set tar- making efforts as a whole with area control in five Committee* Products (meets 2 times/year)
(meets 2 times/year) Formulation of
gets to be reached by 2030 as milestones. We have also global regions, the above four plus Europe/South medium- and Promotes and manages development of Manages, guides, and
(Chairperson: Company environmentally-friendly products and
president) long-term targets supports coordinated
formulated a 5-year action plan in which activity items Africa. These initiatives are made in conjunction with and discussion of technologies environmental efforts
Discussion of measures and by Group companies
and targets are set, and are carrying out activities to pro- government agencies, customers and suppliers. issues to achieve Production and in Japan
matters necessary Production Environment Subcommittee
for medium- and them Environment Subgroup
(meets 2 times/year) (meets 2 times/year)
long-term Liaison Committee for
Environmental Policy business Production Discussion of specific Promotes and manages policies and technical Environmental
decisions measures and issues to development measures for reduced Communication
1. Environmentally-Friendly Corporate Activities 2. Good Corporate Citizenship 3. While Spreading achieve short and emissions from production processes with Overseas Affiliates
medium-term goals (meets once/month)
We are keenly aware that all stages of our business As a good corporate citizen, we participate in, Information on These
relate deeply to the environment, from development, support, and cooperate with environmental Subcommittee on Systems for SOC Regulations Manages, guides, and
Activities, We Listen to and Quality Assurance (meets as needed) supports coordinated
production, and sales activities to end-of-life disposal. activities by many groups while also working Quality Assurance environmental efforts
The Toyoda Gosei Group, including all internal divi- on environmental activities in the community the Opinions of People Develops systems for compliance with SOC by Group companies
sions, domestic and international affiliates, and sup- and broader society. We also provide education at All Levels of Society regulations and for quality control in other countries
pliers, conducts all business activities with concern for for all employees to support them in becoming
and Work to Improve * The position of the Carbon Neutrality and Environmental Committee within the organization can be seen in our Corporate Governance Organization Chart (see p. 69)
the environment in cooperation and coordination with involved in environmental activities as members
customers, government agencies, and others. of the community and society, and support Our Activities Wherever Deployment from the Carbon Neutrality and Environmental Committee, the Production and Environment Subgroup, and the respective subcommittees to plants and
other operations is done with the establishment of expert committees in accordance with the ISO 14001 system at each plant.
social contributions and volunteerism. We Can.

Carbon Neutrality and Circular Economy Strategy Materials Design Manufacturing Recovery/recycling

TG 2050 Environmental Challenge To help us achieve the TG 2050 Environmental Chal- Carbon Neutrality and Circular Economy Strategy
The Toyoda Gosei Group specializes in the field of the starting point for polymers. Borrowing from the six lenge, we have developed a carbon neutrality and cir-
high polymers—rubber and plastics. Our symbol is the sides of the benzene ring, we have set six challenges for cular economy strategy for the entire life cycle of our
benzene ring, a hexagonal hydrocarbon structure that is our environmental preservation activities with a long- products. Our goal is to contribute to a carbon-neutral,
circular economy by taking concrete actions in the Sustainable
TG 2050 Environmental Medium- and Long-Term Scenario for Achieving Carbon Neutrality Materials
four specific areas of sustainable materials (Materials),
Products and
Challenge technology sustainable design (Design), a zero emission challenge
Global enhancement ・Global consolidated Targets 50&50
(Six Challenges) Carbon
Contribute to
environmentally-friendly
target management
・Water use reductions
(50% decrease in CO2
emissions and 50% Neutrality
(Manufacturing), and resource circulation (Recovery/ Materials
societies through high renewable energy use)
polymer and LED
Decarbonized
Enhanced reduction of 6 gases Declaration recycling).
Circular technology Nature-friendly activities・Start of plant afforestation
societies societies
Materials We will procure recycled materials and expand
Cut plant CO２ to
True start of Activities for decarbonized societies Resource Recovery/ Sustainable
Minimize waste and
create resource zero and utilize TG 2050 the use of biomass materials with a stable Design
recycling renewable environmental ・Introduction of renewable energy Environmental Circulation recycling Design
systems energy activities ・Completion of LED lighting replacement Challenge
supply in mind.
•Management system ・Strengthened production engineering kaizen
Announced
consolidation ・Inauguration of energy-saving kaizen expert team
February 2016 Design We will seek designs for lightweight products,
•Legal management
•Waste reduction easy disassembly, and compactness. Manufacturing
Circular Environmental
・CO2 reduction
societies preservation and
targets 2030 Milestones Manufacturing In addition to daily improvements, we will
living with nature
Minimize water risks •Main plant ISO Announced April 2020 continue to introduce innovative processes,
and improve Strengthen and expand acquisition (targets set April 2021) Zero Emission
waste water environmental protection
7th including line downsizing and heat energy
quality and preservation Challenge
Environmental activities
6th Action Plan reduction, and explore the use of hydrogen.
management 1st 5th Announced
Action Plan
Foster an environmentally Action Plan Action Plan April 2021
Recovery/recycling We will systematically minimize the waste in
responsible corporate
Environmental Action Plan (5-year plans)
culture and our plants, while at the same time building
employees
1993 2015 2020 2025 2030 2050 systems to recover parts from the market.

42 43
 Contents About Toyoda Gosei Value Creation Story Value Creation Strategy Foundation of Value Creation Data

Environment

Building Decarbonized Societies Reducing CO2 Emissions

The Toyoda Gosei Group is reducing CO2 emissions in the product stage, production stage, and over the entire
lifecycle to achieve the targets set for FY2025.
In addition to lighter weight products that lead to improved vehicle fuel efficiency, we are reducing CO2 emissions
through improved productivity and more efficient distribution.
■ Product Development Stage: Environmentally-Friendly Product Development Materials Design

Basic Philosophy In the product stage, we are making headway in of high pressure hydrogen tanks for FCEVs and,
providing parts for environmentally-friendly, next- after confirming strength and other quality aspects,
In addition to achieving the goal set under the Paris the midpoint for the TG 2050 Environmental Challenge,
ge n e ra t i o n ve h i c l e s a n d d e ve l o p i n g p ro d u c t s aggressively switching materials (e.g., from metal or
Agreement of keeping the rise in the global average and implementing stepwise, specific CO2 reductions.
with lighter weight for greater fuel efficiency and rubber to plastic) in instrument panel peripherals
temperature to below 2°C compared with pre-Industrial
lower energy consumption with linkage in areas of and other IE products and in FC parts such as hoses,
Revolution levels, we must reduce greenhouse gas ■ Support for TCFD Recommendations
materials technology, product design, and production reducing the number of components, integrating
emissions to virtually zero by the end of this century. With The Toyoda Gosei Group endorsed the recommenda- engineering. Examples include the development functions, and making lighter weight products.
the aim of zero CO2 emissions as presented in the TG tions of the Task Force on Climate-related Financial
2050 Environmental Challenge, we are utilizing materials Disclosures (TCFD) in May 2019, and has analyzed risk/ ■ Production Stage: Development of New Production ■ Distribution Stage: Improve Loading Efficiency
and product development skills with an eye toward next- opportunity scenarios and response scenarios based on Methods, Reductions Through Daily Kaizen and Design Manufacturing
generation vehicles in addition to the manufacturing guidelines. Together with an acceleration of initiatives, Other Efforts Manufacturing In collaboration with logistics companies, we are
skills we have cultivated over time. Plans for execution including the TG 2050 Environmental Challenge and On our way to achieving zero plant CO2 emissions reducing CO 2 by improving truck loads and more
are included in our 7th Environmental Action Plan with review of our 2030 milestones, we are actively disclosing under the TG 2050 Environmental Challenge, we have efficient logistics.
activity targets for FY2025. We have also set the goal of relevant information. set 2030 milestones that we seek to achieve through
cutting CO2 emissions 50% (vs FY2013 levels) by 2030, Please visit our website to see the results of our scenario analysis.
daily kaizen at our plants, production engineering in-
https://www.toyoda-gosei.com/csr/ environmental/report11/
novations, higher efficiency of utilities and expansion
of renewable energy.
Carbon Neutrality Project ● Visualization of CO2 emissions
and reduction volumes Without any measures
CO2 Emissions（Scope 1, 2）
Task A ● Items in setting targets （%）
100
We have been reducing CO 2 emissions throughout Understand current
⑴ Set medium- and long-term
targets (2050, 2030, 2025)
Daily improvement
（10,000 tons-CO 2）
Global Toyoda Gosei Co., Ltd. Target
the entire lifecycle of our products, from material and situation and set ⑵ Category (Scope 3) 60 57.4 25% decrease
53.2

Ratio of CO2 emissions volume

reduction targets Unit target details 「Targets 50&50」
vs. FY2015
Innovative production Reduction
47.1 Target
component procurement and product development ⑶ Set targets for each theme Renewable engineerings in energy
50% decrease
energy use consumption
to the production, use and disposal stages. In June Expand to 50% vs. FY2013
50 Utilities upgrades
2030 Target 30
2021, we launched a company-wide Carbon Neutrality Achieving 2025 Target (energy saving equipment)
Target for the 7th 50% decrease Increase

Project to accelerate these activities. carbon Environmental Action Plan （compared to FY2013）
in renewable
energy use 15.9 14.9
25% decrease
neutrality （compared to FY2015） Special priorities
Effect from power 10.8
Structure The project is headed by the President and has Task B Task C Renewable energy companies
switching to
Chiefs of the Corporate Strategy Headquarters, Formulate and Financial influences/ 0
power with low 0
2013 2020 2025 2030 2035 2040 2045
CO2 emissions
2050（FY）
2013 2015 2019 2020 2021 2025 2030 （FY）
Research and Development Headquarters, and execute reduction budgeting and IR/ （Base year）（Base year）
scenarios public relations TG 2050 Environmental Challenge formulated TG2050 Environmental Challenge Zero（carbon neutrality）
Automotive Business Management Headquar-
ters serving as project leaders. The core mem-
Identify where to start and points Clarify financial influences
bers are division general managers and above.
● ●

of focus for strategic reductions and environmental investments

This structure allows for quick decisions and ● Formulate scenarios ● Identify regulatory and industrial
Examples
(pillars of major activity) trends, release information,
actions in management issues. ● Identify items for execution to conduct public relations
Activities Each task is carried out with the relevant divi- bring about scenarios ● Coordinate with customers,

JAPIA, others CO2 Garden — Reducing CO2 Through Visualization

sion general manager as leader. ● Create environmental business

CO2 emissions are calculated for each product in terms of its component parts and processes, and CO2
Reducing CO2 Emissions in the Value Chain emissions graphs (CO2 garden) are created. We have narrowed our focus in materials, processes, and facilities,
Aiming for Carbon Neutrality in the Value Chain by 2050 leading to effective CO2 reduction initiatives.
●　Product lifecycle STEP Disassemble Products to Part Units STEP Disassemble to Process Unit
Procurement of materials and parts Toyoda Gosei (manufacturing) Use/Disposal (recycling) 1 2 Part ① Part ② Part ③
Scope 3*1 Scope 1*2 , 2*3 Scope 3 Part ①
Molding Molding Molding
Part ② Plating Plating Plating
Procurement of Transport Commuting & Part ③
Parts manufacture Transport Usage Waste Painting
materials and parts business trips
Assembly
●　Content of initiatives
Material and part Reduction of CO2 Minimization of CO2 Achieving zero CO2 at plants Minimization of CO2 in usage stage STEP Calculate CO2 Emissions Focus of reduction STEP CO2 Reduction Initiatives
Identification
CO2 minimization in distribution in commuting and ・Daily improvements:
Thorough energy-saving activities
・Lighter weight products
・Product development for BEVs, FCEVs
3 by Component Parts of issues by
element
4 Materials: Thinner product walls, use of recycled
In collaboration with In collaboration with business travel 10
materials manufacturers: logistics companies: ・Utilities upgrades: ・Development of power devices and and for Each Process, materials

kg-CO2 / part
・Encourage use of
・Development and use of ・Loading efficiency, High-efficiency equipment other technology Manufacturing: Low-pressure molding, shorter
BEVs, FCEVs Create CO2 Garden
・Innovative production engineerings: 5
recycled and biomass materials more efficient ・Recommend Web Minimization of waste Manufacturing
cycle times
Development of innovative
In collaboration with transport routes conferencing and • Design for easy disassembly
manufacturing methods 0 Parts
parts manufacturers: ・Introduction of working from home • Promotion of waste collection
・Renewable energy introduction: Molding
・Reduction of CO2 emissions electric trucks
Solar panel installation, green energy and recycling process Plating Painting Materials
lines
lines Assembly
*1 Greenhouse gas emissions in the company’s supply chain that are not directly related to the company’s activities (raw materials manufacture, transport, business lines
travel, commuting, etc.)
*2 Direct greenhouse gas emissions by the company itself (fossil fuels, natural gas, etc.) *3 Indirect greenhouse gas emissions (purchase of electricity, etc.)

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 Contents About Toyoda Gosei Value Creation Story Value Creation Strategy Foundation of Value Creation Data

Environment

■ Renewable Energy
Building Circular Societies
We are expanding renewable energy, including the Percentage of Renewable Energy［Global］
installation of clean solar and wind energy generation （%）
60 Target
equipment and the purchase of green power. This Toyoda Gosei uses resources effectively and contributes to circular societies by reducing waste volumes 2 and water
＊

2030
exceeded 5% of our total global electricity consumption Target 20％ usage and designing products that are easily recyclable.
40 2025 *2 We are currently attempting to reduce waste volumes for the minimization of industrial waste as set forth in the TG 2050 Environmental Challenge.
by the end of FY2021. Our next challenge is to raise 12％
clean energy levels to at least 20% globally by FY2030.
20
6
Basic Philosophy
0 As a polymer manufacturer specializing in rubber Another major problem relates to water, with water
2019 2020 2021 2025 2030 （FY）
and plastics, we undertake to do our part for circular shortages and flooding in many parts of the world
societies through the effective use of limited resources. caused by climate change. We are therefore identifying
Reductions in 6 Greenhouse Gases 1 *
First, we take measures to prevent defects and risks in all countries and regions of the world where we
improve yields centered on manufacturing floors. In have operations, and working to mitigate these risks
Of the six greenhouse gases, Toyoda Gosei Co., Ltd. Greenhouse Gas (6 gases) Emissions (CO2 equivalents)
addition, we are seeking ways to limit emissions and by decreasing water consumption and recycling water,
uses three (HFC, PFC, SF6) and is conducting activities ［Toyoda Gosei Co., Ltd.］
recycle materials with the involvement of our material as well as returning cleaner wastewater to surrounding
to reduce all of them. By FY2015 we had completed a （10,000 tons-CO 2）
2.0 and production engineering divisions, where all of our communities.
switch to alternative gases with a low environmental
work starts, and expand resource circulation.
impact for the shield gas used in the production of 1.3
steering wheel cores and other gases. We will continue
these reduction activities in the future.
1.0
Risks and Opportunities Associated with Resource Circulation
*1 Hydrofluorocarbon (HFC), perfluorocarbon (PFC), sulfur hexafluoride (SF6),
The risks and opportunities associated with resource recycling are an important management issue, and we are
methane (CH4), nitrous oxide (N2O), nitrogen trifluoride (NF3) 0.03
0 addressing them company-wide as one of our key action items.
2012 2019 2020 2021 （FY）
Impact items Risks Opportunities Response
• Higher revenue from recycling • Product development for lighter weight
Environmental Impact in the Value Chain Depletion of • Decreased revenue, production technology, reduced material usage • Development of raw material recycling
resources disruptions from difficulty purchasing • Higher corporate value from technology
(shortage) raw materials and soaring prices development of the above • Greater use of plant-derived biomaterials
From the perspective of preserving the earth, we have CO2 Emissions by Scope Level (FY2021 results)［Global］
technologies and recycled materials
surveyed and disclosed not only GHG emissions (Scope Emissions
Scope / Category
1, Scope 2) in our business activities but also emissions (10,000 tons) • Production disruptions from difficulty
• Higher revenue from reuse of water,
in our entire value chain including excavation of raw Scope 1 10.1 ensuring water needed in production • Development of water reuse technologies
Water risks decreased usage
• Poorer product quality from water • Greater use of rainwater
materials and product use and disposal (Scope 3). Our (volume/ • Higher corporate value from
quality deterioration • Review of production networks, review of
Scope 2 37.0 quality) development of the above
Carbon Neutrality Project was inaugurated in FY2021 • Production disruptions from water electric facility installation sites
technologies
damage
to improve the accuracy of Scope 3. Together with this,
we have established milestones and are making efforts 1. Purchased goods and services 138.1
to reduce CO2 through lighter weight and recycling of
2. Capital goods 14.5 Waste Reduction
raw materials for which there are high emissions.
3. Fuel- and energy-related activities ■ Establishment of 2030 Milestones Scenario for Minimizing Amount of Waste (reduction image)
5.0
(not included in scope 1 or scope 2) ［Toyoda Gosei Co., Ltd.］
As we move toward the circular societies envisioned
4. Upstream transportation and （%）
8.2 in our TG 2050 Environmental Challenge, we aim to 100
distribution
Scope 3 172.4 minimize emissions volumes and have set targets as Daily improvement

Percentage of waste
5. Waste generated in operations 3.8 Post-occurrence measures
2030 milestones for the effective use of resources,
60
including measures to limit emissions and control 50
2030 Target Industrial method development
6. Business travel 0.4
their source, recycling of rubber and plastic scrap, 2025 Target line 50% decrease Recycling
Targets for the 7th Environmental Action Plan （compared to FY2012） （including development
7. Employee commuting 2.3 and reducing waste through careful and thorough 40% decrease of recycled products）
（compared to FY2012）
separation. 0
8. Upstream leased assets 0.1 2012 2017 2020 2025 2030 2040 2050（FY）
TG 2050 Environmental Challenge Minimization
Minute amounts for other than the above, or not applicable

■ Satisfying the Plastic Resource Circulation Act Plastic Industrial Waste Volume［Toyoda Gosei Co., Ltd.］

The Plastic Resource Circulation Act went into effect （ Tons） Target
1,500 1,373 22% decrease
in April 2022, and with a view to our contribution to vs. FY2019
1,215
carbon neutrality, we are committed to designing
and manufacturing environmentally friendly 3R + 1,000
1,073
Renewable products.
We have also set new 2030 targets for industrial 500

plastic waste volume and are working for plastic

resource circulation. 0
2019 2020 2021 2030 （FY）
（Base year）

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 Contents About Toyoda Gosei Value Creation Story Value Creation Strategy Foundation of Value Creation Data

Environment

■ Development of Product Recycling Technology Amount of Waste［Toyoda Gosei Co., Ltd.］ Waste Volume per Sales Unit (index) 1［Overseas Group companies］
*
Materials Design Manufacturing Recovery/recycling
（1,000 tons ） （Index）
We develop and design easily recyclable products Development of Technology for End-of-Life Vehicle Parts Recycling 12 11.3 100 100
and materials with thought to the entire lifecycle Key items Measures implemented 2025 targets
40% 2030 targets 2025 targets
of automobiles. We are also developing recycling • Composite material separation technology decrease vs. 80 50％ 2030 targets
50% 55％
technology for waste material. New recycling • New recycling technology (high quality FY2012 decrease vs. decrease vs.
8 FY2015 decrease vs.
material recycling) FY2012 FY2015
60
Use of recycled • End-of-life vehicle recycling technology 5.5
materials in • Development of applications for recycled
vehicles materials 40 34
4
• Product design for easy disassembly
Product design 20
• Materials and composition changes for easy
for easy recycling
recycling
0 0
2012 2019 2020 2021 2025 2030（FY） 2015 2019 2020 2021 2025 2030（FY）
（Base year） （Base year）
Examples *1 A figure obtained taking the base year as 100

Full-Scale Operation of Rubber Recycling Processes to Achieve FY2030 Targets Recovery/recycling

We aim to reduce waste materials by 50% (com- Weatherstrip Recycling Process Reducing Water Risks Manufacturing

pared with FY2012 levels) by 2030 on our way to Input of waste Water injection We have set and are working toward 2030 milestones trying to reduce water intake amounts for the effective
achieving carbon neutrality in 2050. In April 2021, material (deodorization) Exhaust gas to achieve the targets in the TG 2050 Environmental use of resources.
recycling processes for four types of weatherstrips treatment
Water Water Water Challenge. For this we are assessing risks in both water In FY2021, we cut water use through improvements
were brought together in a dedicated building. By
Cooling tank usage and water quality in Japan and international to reduce leakage and by promoting recycling. We
restoring waste rubber to a raw material state with
locations, and making improvements at high-risk are also planning upgrades to wastewater treatment
our original technology and using it in new products,
locations. Even in places where risks are low, we are facilities for cleaner waste water.
we expect to reduce waste by about 600 tons. This
Pulverization Desulfurization Deodorization Heat
should also have an effect in reducing CO2 emitted Water Intake per Sales Unit (index) 2［Toyoda Gosei Co., Ltd.］
2030 Reducing Water Risks Milestone［Global］
*

during raw material transport and the incineration of Reclaimed （Index）

Item 2030 target
waste. In addition, we hope to contribute to reducing Desulfurization process rubber 120 107
Measures completed
100
the environmental impacts of the industry overall, Water quality
at four locations
by using this recycled rubber not only inhouse but High risk area
Measures completed 60 2025 targets
also selling it to other companies. Water intake 2030 targets
at seven locations 6％ 11％
decrease vs. decrease vs.
Water intake per 11% decrease vs. FY2019
Low risk area FY2019
sales unit FY2019
0
■ Reduction of Waste Materials in the Production Stage Manufacturing Recovery/recycling 2019 2020 2021 2025 2030（FY）
（Base year）

To reduce waste in the production stage, we are Amounts of Waste Generated and Disposed of (results for *2 A figure obtained taking the base year as 100

combating waste at its source and recycling. To FY2021)［Toyoda Gosei Co., Ltd.］
minimize waste in the TG 2050 Environmental Amount of internal reuse
Challenge, we launched a waste reduction project in 1,522 tons Amount of compensated Re-S Eco-Brand Recovery/recycling
recycling
2018 by our plants and production engineering, ma- (payment received) As one part of our efforts to reduce waste, we have “Re-S” was coined from the prefix
5,841 tons “re-,” as in “reborn” and “recycle,”
terials technology, and product design divisions, in expanded to products that use remnants generated Re-S
Amount that is the start of environmentally- online
which we combat waste at its source and recycle. We of waste Amount of paid in the production of automotive parts such as airbags friendly activities, and also includes shop
also conduct mottainai inspections to identify items 5,517 tons recycling
the meaning of sustainability (S).
〈100%〉 and steering wheels, under the Re-S brand. https://res00.base.shop/
(payment made)
for reduction with genchi-genbutsu (go and see) and Amount of Amount of Our Re-S brand is widely marketed to the general
5,516 tons
other reduction activities at each business location. landfill waste incinerated waste 〈99.9%〉 public, including consumers, and is being promoted
0 ton〈0%〉 0.5 tons〈0.1%〉
Good examples of reduction are shared among through regular pop-up stores at nearby commercial
domestic and international Group companies as the Figures in parentheses are the proportion of the discarded materials volume Airbags &
facilities and through our own online store. seatbelts
entire Group tries to reduce waste. In addition, we are actively collaborating with
Collaborative
companies in different industries, which we hope will
product with
■ Reduction of Packaging in the Distribution Stage Recovery/recycling lead to the accumulation of B to C business know-how. Kinjo Gakuin
University
In FY2021, we promoted and launched a project Representative product
The packing material used in product transport is are also reducing packing material by putting lids on for collaborative products with Doala, the mascot of
being reduced to prevent products from being soiled reusable containers and other changes, considering the Chunichi Dragons professional baseball team,
by increasing the number of times reusable containers the balance between maintaining product quality and Yamanami Kobo, a facility for people with disabilities,
are used in the field and maintaining cleanliness. We reducing the use of packing materials. and students of Kinjo Gakuin University.

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 Contents About Toyoda Gosei Value Creation Story Value Creation Strategy Foundation of Value Creation Data

Environment

Environmental Preservation and Building Environmentally-Friendly Societies Working to Save Our Water, the Source of Life on Earth
Initiatives to protect the water used at our plants from its source
■ Main Activities Related to Biodiversity

(mountains) to its destination (sea) Woodland Maintenance

In FY2019 we cleared undergrowth and thinned trees
We comply with laws and regulations related to chemical substance control and the environment, and are
in a forest in Minokamo, Gifu Prefecture, located on
conducting activities to protect biodiversity. Breeding endangered creatures
the upper reaches of the Kiso River to promote healthy
Protecting rare species in biotopes
Plant afforestation woodlands.
Basic Philosophy
●

● Biotope creation
● Creation of biotopes in regulating ponds
Heiwacho Plant
In addition to strengthening the selection and man- customer standards in every country where we do
agement of chemical substances to create products business, based on ISO 14001. Abundant water with abundant forests
and processes that are kind to people and the earth, We are also maintaining a company woodland, “Toyoda Gosei Kimori no sato ” for
we are improving environmental management in creating biotopes, and working to preserve tidal flats woodland maintenance
● Clearing undergrowth (scheduled for June, October）
things such as compliance with laws, regulations and and other areas for biodiversity. Kimori no sato preservation work Woodland maintenance participants
Protecting local aquatic life Fostering organisms in clean in Gifu Prefecture
Eradicating non-native species and beautiful seas
Environmental Biotope Creation on Company Grounds
Control of Substances of Concern ● Eradication of lance-leaved
coreopsis (June) preservation in tidal
Environmental education flats We conducted a biological survey of the biotope com-
To strengthen the management of chemical substanc- country for information on chemical substances in through nature observation ● Preservation of pleted in FY2018 at the Heiwacho Plant. Five themes
Fujimae Tidal Flats
es in our products, we control substances that are products, we have devised mechanisms and conducted ● Eco tour (June)
(May, October) and five species that are Aichi Prefecture Ecosystem
legally regulated in each country, substances that are systems for global collective management of chemical Monitoring Indicator Species were confirmed, and
self-regulated by automakers, and substances covered substances that we are currently using in Japan, China, living organisms have begun to gradually become
by our own company regulations. We monitor the Thailand and Vietnam. We will be steadily expanding established.
trends in European REACH*1 regulations and the EU this system to places where it is not yet in use.
RoHS Directive*2 and have a system in place to respond *1 Registration, Evaluation, Authorization and Restriction of Chemicals
*2 Restrictions on the use of specific hazardous substances contained in
rapidly when these regulations are revised.
electrical and electronic equipment
To respond to requests from automakers in each

Reduced Use of Substances of Concern Volumes and Flow of Emitted PRTR Substances
［Toyoda Gosei Co., Ltd.］ Biological survey at Heiwacho Plant Biological survey participants

In production processes, we are switching to water- Atmospheric emissions 81

Recycled
based paint and release agents, making painting lines （Unit: tons ） 17 Activities to Eliminate Compliance and Environmental Violations and Complaints
more compact, improving coating efficiency, and
Chemical
making other efforts to reduce Pollutant Release and substances Regular checks are conducted by expert departments analyze problems that occur at other companies,
Products
handled and maintenance and management are carried out inspect similar facilities including those at domestic
Transfer Register (PRTR) substances. 521 276
to ensure legal compliance and no environmental a n d i n t e r n a t i o n a l G ro u p co m pan ies, an d take
Released into Released into Released into Amount transferred Disposal
waterways sewers soil as waste (amount treated) problems or complaints. Preventive activities such as preventive measures. There were no occurrences of
0.12 0 0 43 103 environmental preservation project team activities environmental abnormalities in FY2021.
are also conducted to combat risks. In addition, we
Building Societies in Balance with Nature to Preserve Biodiversity
In an initiative to conduct our business in balance with nature for the preservation of biodiversity, we have set Proper Disposal and Storage of PCB-Containing Equipment
coexistence with local communities as a material issue and are seeking to promote it.
The law stipulates that hazardous and persistent No. of units Treated
Category Type
■ Risks and Opportunities Associated with Biodiversity ■ Establishment of Medium- and Long-Term Targets PCB (polychlorinated biphenyl) waste must be treated weight

We are working to identify risks and opportunities To contribute to environmentally-friendly societies as disposed of by the end of March 2027. We started High concentration PCB
Ballast, power 802 6.9
outsourcing this disposal in FY2006 for the proper waste material
associated with biodiversity. envisioned in the TG 2050 Environmental Challenge, (PCB levels: >5,000 mg/kg)
capacitors, etc. units tons
we have set the goal of no net loss of greenery (restoring treatment of equipment that contains PCBs. By
Risks and Opportunities
59 hectares, equivalent to the area of our plants, to FY2021, 896 units had been treated. We will continue Low concentration PCB Transformers,
94 80.3
Impact waste material power capacitors,
items
Risk Opportunity Response greenery by 2050) and are working to achieve this goal. to process untreated low-concentration PCB waste at (PCB levels: 0.5–5,000 mg/kg) etc.
units tons
an early stage. Until that is completed, appropriate
Scenario for Achieving This 2050 targets
• Decreased revenue, • Business continuation • Product development management based on the PCB Special Measures Law
production disruptions by ensuring personnel for lighter weight 0
0
2010 2020 2030 2040 2050 （FY）
is done to prevent runoff and soil contamination.
from difficulty and raw materials
purchasing raw through nature • Development of raw
-10
Declining materials and soaring conservation activities material recycling
natural prices technology -20 Protecting Soil and Groundwater
capital • Sustainable production Location Target Status of corrective measures
• Poorer product quality and higher corporate • Greater use of plant- -30
-36.0 We carefully monitor and treat soil and groundwater
from water quality value by ensuring high derived biomaterials 2025 targets
Haruhi Purification in progress (proactive treatment, as
2030 targets Groundwater
deterioration quality water resources and recycled -40 co n t a m i n a t i o n f ro m t ox i c s u b s t a n ce s s u c h a s Plant contamination from off-site sources is possible)
through woodland materials 2021 targets -45.0 ・Tree planting
-50 2010 targets -51.0 ・Woodland maintenance trichloroethylene, which was formerly used in cleaning Because substances we have no history of using have
maintenance and river
・Use of abandoned farmland agents. We have established observation wells at each been detected, regular reports to the government
conservation -59.0 Inazawa
-60 ・Solar power generation, more Groundwater contain results of measurements only
plant, and regularly confirm that there is no soil or Plant
*Results below reference values since 2010 (government
-70 groundwater pollution from toxic substances and oils. reports concluded in FY2012)
ha (area of lost greenery)

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 Contents About Toyoda Gosei Value Creation Story Value Creation Strategy Foundation of Value Creation Data

Environment

Environmental Management ■ International Environmental Audits

Voluntary annual inspections are performed based on
TG Global EMS, which are our original environmental
In coordination with Group companies in Japan and other countries, we are continuing employee training and management system standards, problems are correct-
education programs so that every employee can act with awareness of the environment. ed, and kaizen activities are carried out.
Toyoda Gosei (Thailand) Co., Ltd.

Basic Philosophy
We are also making aggressive efforts for education to raise the environmental awareness of employees and train Activities Based on Green Procurement Guidelines
personnel for sustainable environmental activities. We conduct surveys of the status of compliance with neutrality study groups, we provide
green procurement guidelines of the suppliers with examples of CO2 reductions and other
Enhancing Group-Wide Environmental Management whom we do business, and conduct genchi-gembutsu information.
(go and see) inspections of high-risk companies. When
The entire Toyoda Gosei Group promotes environmental management. Environmental data has been collected by needed, we carry out joint kaizen activities. In carbon
domestic Group companies since FY2001 and by international Group companies since FY2003.
Plants Subject to Environmental Management
Environmental Education
Toyoda Gosei Co., Ltd. Affiliates in Japan
Haruhi Plant Inazawa Plant Heiwacho Ichiei Kogyo Co., Ltd. Kaiyo Gomu Co., Ltd. Toyoda Gosei East 　 Toyoda Gosei educates employees on environmen- The content each year emphasizes understanding
Nishimizoguchi Plant Bisai Plant Plant Toyoda Gosei Hinode Co., Ltd. TG Opseed Co., Ltd. Japan Co., Ltd. tal problems including the destruction of nature and and practices based on legal trends, with examples
Seto Plant Morimachi Plant Inabe Plant* Hoshin Gosei Co., Ltd. TGAP Co., Ltd. Toyoda Gosei Kyushu environmental pollution, the impacts on the environ- incorporated to create specific and understandable
Co., Ltd.
Toyoda Gosei Interior ment of production activities, and compliance with teaching materials.
Manufacturing Co., Ltd. environmental regulations.
Overseas Affiliates
Environmental Education System
■ Americas ■ Asia
Toyoda Gosei Group companies Toyoda Gosei Group companies
(Regional headquarters: Toyoda Gosei North America Corporation) (Regional headquarters: Toyoda Gosei Asia Co., Ltd.) Level-specific training ISO education
Co., Ltd. Japan Overseas Co., Ltd. Japan Overseas
TG Missouri Corporation Toyoda Gosei Texas, LLC Toyoda Gosei Automotive Toyoda Gosei(Thailand) PT. Toyoda Gosei ○
Education for new managers ○ Education for environmental staff
TG Kentucky, LLC Waterville TG Inc. Sealing Mexico S.A. de C.V. Co., Ltd. Safety Systems
○ Education to improve internal auditors’ skills ○ ○
GDBR Industria e Comercio de Toyoda Gosei Rubber Indonesia Education for those posted overseas
TG Automotive Sealing TG Minto Corporation Education to register internal auditors ○ ○ ○
Componentes Quimicos e de (Thailand) Co., Ltd. Toyoda Gosei Minda Education for environmental key persons ○ ○ ○
Kentucky, LLC TAPEX Mexicana S.A. de Education for supervising managers ○ ○
Borracha Ltda. Toyoda Gosei Haiphong India Pvt. Ltd. Acquisition of environmental education
TG Fluid Systems USA C.V. ○ ○ ○ Education for key environmental facility
○ ○
Toyoda Gosei Rubber Mexico, Co., Ltd. Fong Yue Co., Ltd. qualifications workers
Corporation
S.A. de C.V. Toyoda Gosei South India PT Toyoda Gosei Education for new employees ○ ○ ○ Education for general employees ○ ○ ○
Pecval Industria Ltda. Pvt. Ltd. Indonesia
Toyoda Gosei Irapuato Mexico,
S.A. de C.V.
Activities to Raise Environmental Awareness
■ China (Regional headquarters: Toyoda Gosei (China) Investment Co., Ltd.) ■ Europe and Africa
Tianjin Toyoda Gosei Co., Ltd. Toyoda Gosei Toyoda Gosei (Foshan) Auto Toyoda Gosei UK Ltd. Toyoda Gosei South We are attempting to raise the environmental awareness in their activities for ongoing environmental protection.
Toyoda Gosei Star Light (Zhangjiagang) Co., Ltd. Parts Co., Ltd. Toyoda Gosei Czech, s.r.o. Africa (Pty). Ltd. of employees through Environment Month events, We also conduct a questionnaire survey of employees
(Tianjin) Auto Parts Co., Ltd. Toyoda Gosei (Foshan) Hubei Toyoda Gosei Zheng regular environmental lectures, and other activities so each year to assess their environmental awareness and
Rubber Parts Co., Ltd. Ao Rubber & Plastics Sealing
Technology Co., Ltd. that all employees have an awareness of the environment plan educational activities based on the results.

* The Inabe Plant was added from April 2021. Level of Recognition of Toyoda Gosei’s Long-Term Environmental Initiatives
Acquired ISO 14001 certification. When new plants and new companies are established, we aim to acquire ISO 14001 within three years of starting operation.
Know well Have a general idea of
Have seen and heard Don’t know

Environmental Audits FY2021 18％ 56％ 23％ 3％

Raise name
■ ISO 14001 Environmental Audit FY2020 13％ 54％ 27％ 6％ recognition
year by year
Toyoda Gosei and its domestic and international Group sess whether our environmental management systems FY2016 7％ 32％ 43％ 19％
companies acquire ISO 14001 environmental manage- are run properly in accordance with ISO 14001. We are ０％ 20％ 40％ 60％ 80％ 100％ Environment Month (virtual environmental exhibition)
ment system certification. Internal environmental audits promoting 100% acquisition with the intention to have
are carried out by audit teams composed of members new companies acquire ISO 14001 certification within
from business areas outside those being audited in order three years of be- Collaboration with External Organizations
to raise the independence and objectivity of the audits. ing established.
As the leading company in the Japan Auto Parts Measures to counter global warming is an issue on
Toyoda Gosei Co., Ltd. commissions external reviews by
Industries Association’s Global Warming Prevention a global scale, and requires effort in collaboration with
the Japan Quality Assurance Organization (JQA) to as-
Subcommittee, we work with member companies the entire automobile industry. We will continue to
ISO 14001-Certified Production Sites Acquisition rate 100% to prepare positive case studies and various study actively participate and put out information.
Americas: 13 companies, sessions.
Toyoda Gosei Co., Ltd. 7 plants
Asia: 7 companies,
Overseas Affiliates
China: 6 companies, Internal environmental audits / Toyoda Gosei
Affiliates in Japan 9 companies
Europe/Africa: 3 companies Hinode Co., Ltd.

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 Contents About Toyoda Gosei Value Creation Story Value Creation Strategy Foundation of Value Creation Data

Growing together through activities with

Social
all stakeholders
With our management philosophy of conducting business with FY2021 Priority Item Results and FY2025 Targets［Toyoda Gosei Co., Ltd.］
integrity, we are committed to contributing to society through Priority item FY2021 results FY2025 target
manufacturing, and are working to develop our personnel and create No. of people who have taken training for executive personnel 54 65
comfortable work environments as the foundation for such activities. Percentage of people who have had overseas assignments
22.7％ 25%
Respect for human rights is also important, and is the basis for (management, technical and office personnel)

various activities with our domestic and overseas Group companies No. of DX personnel trained 94 270

and business partners. No. of female managers 30 40

Local executive percentage (VP and above at overseas 31.0% 40%
Group companies) ［Global］ ［Global］
Percentage of managers who are mid-career hires 30.9% 30% or higher
2.78% Achievement of legally mandated rate
Employment of people with disabilities
［Entire Group in Japan］ ［All Group companies in Japan］
Human Resources Strategy Engagement survey results (positive evaluation) 56% 65%
Average overtime hours 12.3 h/month per person Less than 10.0 h/month per person
Annual paid leave taking rate 97.3% 90% or higher

We Aim to Be a Group of People Who Can Think Independently and Act Boldly
The automotive industry today faces social challenges, are striving to strengthen our ability to identify problems, our
including the shift to BEVs and move toward carbon ability to conceptualize scenarios and action plans, and our Human Rights Initiatives
neutrality. In this rapidly changing environment, human ability to execute these plans and bring them to reality.
capital is an ever greater focus of attention as a basis for We believe that human resource development measures
sustainable company growth, for which enhancing our and culture reforms must go hand in hand in order to
Basic Philosophy
human resource strategies is essential. develop people who can think for themselves and take on
The TG Spirit refers to a common set of work values that challenges. To create a vibrant and comfortable working The Toyoda Gosei Group respects the United Nations’ Universal Declaration of Human Rights, the UN Guiding
we have adhered to throughout our history of more than 70 climate, we will respect the various values of our diverse Principles on Business and Human Rights, and other international norms. The Toyoda Gosei Group Charter
years. Our problem-solving method and the PDCA cycle is workforce (diversity and inclusion) and create workplaces for Business Ethics lays out our basic principles of “respecting human rights and the diversity, character, and
fundamental to how we approach our work. Together, they where people can freely express their ideas, make proposals individuality of each person and striving to create workplaces that are free of discrimination and harassment
form a foundation for the people that support the company’s and fully demonstrate their abilities while we continue and always healthy, pleasant and safe, based on labor-management cooperation.” The Toyoda Gosei Guidelines
sustainable growth, which we consider to be one of our to reform work styles and change ways of thinking. At the for Business Ethics, our behavioral standards to realize the ideals in the Charter, declares respect for individual
strengths. same time, we seek to develop the abilities and promote the character, human rights, and fairness in hiring, and forbids forced labor and child labor.
We aim to achieve sustainable corporate growth by growth of each individual.
■ Formulation of Human Rights Policy Group companies and our business partners. The progress
responding to market changes in our core automotive
In May 2022, we formulated the Toyoda Gosei Group of this activity will be disclosed on our website from time
business, and by commercializing new technologies to solve Boundless Creativity and Social Contribution
Human Rights Policy based on the UN Guiding Principles. to time.
increasingly diverse and complex social issues.
Business growth × Solving social issues
We seek to strengthen our market competitiveness by We will promote management that respects human rights ■ Education
Display of abilities, individual and organizational growth
enhancing the competitive advantages we have cultivated: and diverse values in the countries and regions in which we In the past, education on respect for human rights was
knowledge in the fields of rubber and plastics, a global network, operate, and contribute to sustainable societies through provided on occasions such as when people join the
and new business development experiences. At the same time, mutual growth and development with our stakeholders. company, and when they are promoted. In FY2022, based on
A group of people who can think independently and act boldly
we strive to display leadership in solving social issues. For this, This policy is positioned as the highest level human the formulation of the Toyoda Gosei Group Human Rights
Promote the development Active participation of Create a pleasant
the thinking and independent actions that will enable us to of human resources a diverse workforce corporate culture rights policy in the Toyoda Gosei Group. To continue as a Policy, we have introduced lectures by outside speakers on
TG Spirit Sincerity, Activity, Unity company of integrity, we will comply with all relevant laws the theme of well-being, a human rights policy practical guide
adapt to market changes, as well as business opportunities
and risks, are important. To bring us closer to this ideal, we Respect for human rights and regulations in the countries and regions where we do in the company newsletter, training for department general
business, and as a good corporate citizen we will earnestly managers by outside instructors, online training for technical
address issues related to human rights by promoting and office personnel, and the development of educational
Three Pillars of Human Resources Strategy
activities that respect the fundamental human rights of all tools for skilled workers. We issue a monthly communication
Up to now we have focused on providing edu- our stakeholders. for the creation of workplaces free of harassment and
Promote the development Active participation Create a pleasant
Toyoda Gosei Group Human Rights Policy
cational opportunities for employees to learn of human resources of a diverse workforce corporate culture discrimination, which is read out at workplaces.
https://www.toyoda-gosei.com/csr/social/report2/pdf/ToyodaGoseiGroupHumanRightsPolicy.pdf
our specialized knowledge in areas such as ■ Consultation Office
We are training the leaders Promoting the creation Through continuous
technology and materials, as well as our problem- ■ Human Rights Due Diligence
who will drive sustainable of an environment in improvements based on We have established a consultation office for harass-
solving method and the PDCA cycle, which are growth and systematically which people from var- engagement surveys, we We began conducting human rights due diligence in May
ment, child and nursing care, mental health, and
fundamental to the way we work. We have also developing the specialized ious backgrounds can are creating workplaces 2022 in accordance with the Guiding Principles. Following
employment support for people with disabilities. In
sought to create workplaces where we can all technical personnel who will fully demonstrate their that are pleasant for a di- a desk review, we completed interviews and a written
create stronger manufactur- abilities will lead to the verse workforce, aiming the future, we plan set up and build channels to accept
work together, including women and people survey with relevant personnel at the World Headquarters
ing sites. We want to devel- creation of new value to combine our efforts inquiries from people who are not employees of the
with disabilities who were not traditionally in and domestic and overseas Group companies, and plan
op people who can take ini- and sustainable corpo- to be the company we company.
the workforce. In addition to these existing tiative in facing challenges rate growth. aspire to be with employ- to complete the identification of significant risks by the
initiatives, by implementing measures based on end of this fiscal year. In FY2023, we will study measures ■ System
and display their abilities for ee job satisfaction and a
our changing environment, such as diversification the growth of the business sense of growth. to prevent and mitigate the identified risks, implement Initiatives related to respect for human rights are discussed
of values and our workforce and digitalization of even in an age of volatility, corrective measures, and verify their effectiveness. We at the Human Resources Meeting, and results are reported
uncertainty, complexity, and
operations, we aim to become a group of people will focus on understanding the real situation and taking and confirmed at the Sustainability Meeting, for which the
ambiguity (VUCA).
who can think independently and act boldly. effective measures in cooperation with Toyoda Gosei company president serves as chairperson.

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Promotion of Human Resources Development Training of Global Executive Candidates

For the systematic training of people who will manage Personnel who can play active roles globally
the company in the future, we have introduced a
To raise the collective strength of Toyoda Gosei globally, we are striving to develop human resources and create Personnel who are in universal Personnel who are in demand from
program to help people learn how to look at and think demand the business environment
workplace environments where everyone can display their full abilities.
about things at the management level and cultivate

active role anywhere

skills and techniques

Ability to produce
high added value
the qualities that will help them bear higher levels

Ability to create
Ability to transmit

Professionalism

Ability to make
manufacturing
Enhanced Training Programs, Invigorated Personnel Development

Ability to play an

and high levels

of work responsibility, with aims such as broadening

innovations
innovations
in the world
To improve the skills and abilities needed in working We have also launched a new training program to develop their outlook and improving their judgment. Outside

globally

of skill
at Toyoda Gosei, we are encouraging human resources project leaders who can bring about reforms in order to Japan, we are training executive candidates globally
development in three key areas: problem-solving, which is respond to changes in the business environment, and digital with the introduction of a certification system for
solving problems by clarifying issues and setting goals. Basic competencies needed in business
fundamental to work; the ability to work in teams based on talent to promote DX. We are also actively introducing online
communication; and basic skills for strong on-site abilities. training, e-learning and other new training methods. With the continuous education of management 1 Problem-solving
ability 2 Ability to work
in teams 3 Basic skills
personnel, we will ensure that we have the personnel
Level-Specific TG Spirit（Toyoda Gosei Group’s shared values toward work）
“Basic competency” training who can support the management foundation of the
Education Officers
Executive Problem-solving ability Ability to work in teams Basic skills Role education Global education Specialized education company.
System Management

Senior New division

Executive Project Leader Training in the Age of VUCA
Business/ candidate education
Management general managers
organization
Problem-solving
management New division deputy general
Global leader
In addition to training based on problem solving, 　1）Business leader 2）Business innovation leader
[vision creation] Advanced skills/ managers, department
Skill transfer general managers education we believe people need to develop the expertise,

Development of

Innovation project
Human management Necessary abilities Necessary abilities

digital talent

Leader training
Management Coaching
Mental care
New group leaders,
section managers Management
capabilities, and skills required to respond to ・Scenario planning ・Gathering and analysis
Problem-solving ・Marketing of customer needs
[setting challenges] Division assistant changes in the business environment and implement ・Work analysis
T1 SX Guiding/looking after Fundamental skills managers, supervisors ・Business models
newer employees [advanced] Regional education management strategies. We have started a training ・Project planning, more ・Return on investment
Looking after others

T2 S1 Mid-level, team leaders problem-solving, ・Process design, more

Problem-solving
Communication Fundamental skills S2, 5th year knowing TG program where people learn new ideas, approaches,
T3 S2 [problem occurrence]
Teamwork [intermediate] Effective
Reporting, Fundamental skills
2nd, 3rd year and other skills to create new value and take the lead use of IT
T5・T4 B1・B2 PDCA contacting, consultation [beginner] New employees New employees
in innovating business operations. Three types of Digital personnel
project leaders are trained: 1) Business leaders who development Necessary abilities
・Agile processes
create new businesses and products, 2) Business 3）DX leader
New Employee OJT System ・Design thinking
innovation leaders who innovate business processes, ・Data science
・Digital architecture, more
For early employee education, we have introduced a Year 1st year in company 2nd year in company 3rd year in company and 3) DX leaders who lead digital human resources Data scientist Digital architect
Item
“New employee OJT system” for independence of young and promote DX. This training has been fully
OJT
employees within three years of joining the company. We <workplace>
Position Work guidance based on PDCA implemented since September 2022.
provide both on-the-job training and classroom training
in the workplace so that they can perform their work New employee training Basic problem- Problem-solving Digital Personnel Development for People Who Can Carry Out DX
Business manners solving training practical training
according to the PDCA cycle. PDCA, others

Interviews in the pivotal second, fourth and sixth OFF-JT Plant training Special education Report/contact/ I n re s p o n s e t o t h e ra p i d l y c h a n g i n g b u s i n e s s and in January 2022 we introduced a new educational
<training> Understanding Technician training consult training
years in the company help them display their abilities, manufacturing Production engineering (communication) environment, we are overhauling production processes program to train core digital personnel.
training
understand their individual growth, discover educational New employee and products using data and digital technology. With this we will ensure business innovations and
interviews (2nd year)
problems early, and take measures to counter them. While transforming our business model, we are also our competitiveness in the market, so that we can
transforming the work itself and the organization, grow as an organization that can respond flexibly
processes, corporate culture and atmosphere. We will and rapidly to market changes (81 people received
Special Skills Dojos, Maintenance Skills Dojos, and Mold Skills Dojos Raise the Level of continue this DX to gain a competitive advantage. standard level certification in FY2021).
Skill on the Manufacturing Floor Training people who can do this is an urgent task,
Improving the skills of each worker is an indispensable part also begun to create a curriculum to train people who will Digital Personnel Education System FY2021 Training plan
Necessary DX personnel
of enhancing manufacturing capabilities at production sites. bring autonomation to existing processes through the use of results for 2025

Digital core personnel

We therefore started up three dojos in FY2019 with the basic collaborative robots. Expert level
Can extract and analyze information
policy of “cultivating a culture that values skills.” The Mold Skills Dojo provides basic skills training and Data scientist from large amounts of data and 57 150
The Special Skills Dojo is designed to help managers and trainer training for mold maintenance personnel at domestic DX leader Standard level reflect it back to work improvements
supervisors acquire specialized skills in addition to their and overseas locations. So far a total of 100 people have Data scientist
Digital
architect Is well-versed in the latest cloud
supervisory duties. We have started a training program where been through this dojo. Digital architect and other technologies, and can 24 100
they learn the mechanisms that lead to defects so that they We have been entering the Skills Olympics since 2017. By Entry level implement them
are better able to take corrective actions. helping young employees to acquire the high-level skills and
General
IT literacy
In the Maintenance Skills Dojo launched to train knowledge related to their essential work, we are striving employees Can direct digital talent and
DX leader －＊ 20
maintenance personnel, we have added application-level to develop employees who can play active roles on the promote DX
training to respond to the shift to robotics and IT. To promote production floor in the future. With these ongoing initiatives,
*Due to implementation from FY2022
autonomation through the use of collaborative robots on we hope to achieve strong manufacturing floors that support
manufacturing floors, general shop floor workers are also the company.
being trained in robot teaching skills. In FY2022, we have

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Active Participation of a Diverse Workforce Continuing Roles of Senior Employees

We will create an environment in which senior as how they will work in the future and how to
employees, who are steadily increasing in number, demonstrate the techniques, skills, and experience
Toyoda Gosei hires and trains a diverse workforce, including women, foreign nationals, mid-career hires, and
can continue to work with a sense of security and they have cultivated in the workplace.
people with disabilities. We provide fair and impartial training, evaluation, and promotion opportunities to
high motivation after the age of 60. This will create In addition, to improve health and physical fitness,
all employees, so that everyone can display their abilities. We seek to energize the company by providing an
new value by combining their wealth of experience, we are stepping up activities to promote health
environment where people can play active roles.
techniques, and skills with the ideas and perspectives of through regular discussions with employees, such
younger employees. To build a foundation for this, we as holding health seminars at milestone ages and
Encouraging the Active Roles of Women have raised the retirement age from 60 to 65, effective reviewing cafeteria menus to improve dietary habits.
To bring about a situation in which all employees, implementing training rotations to expand their range April 2022. We will continue the initiatives shown in the
regardless of gender, can play active roles and grow, of experience and perspective. table on the right to encourage employees to continue • Management education for superiors
Increasing (Better communication, dialog ability, etc.)
and to create new value by taking advantage of In technical workplaces, we are also creating man- working enthusiastically and vigorously until age 65. motivation • Career formation education
diversity, we are implementing the initiatives shown in ufacturing floors where employees can play an active We are continuing activities to create an environ- (Young, mid-level to senior workers)

the table below. Our focus is on training and support role regardless of gender or age by introducing inno- ment in which employees, regardless of age, can • Health education
for the active roles of female employees, reforming the vations to minimize heavy labor, such as rethinking maximize their potential and to further improve en- Health and (Seminars in pivotal years)
gagement (target: positive response rate of 65% or physical fitness • Improved cafeteria menu
attitudes and behavior of superiors, and support for a high-load work with the use of karakuri kaizen and the improvements (Corresponding to risks for hyperlipidemia,
work-life balance. greater use of robots. This will encourage more active higher for employee engagement (50s and 60s)). hypertension)
We aim to have more than 40 female managers by participation of female employees. For example, as a means of improving motivation,
• Spread of good examples of workplaces on
we conduct career training for employees in their Workplace
2025 in order to create an environment where female manufacturing floors
environment
Number of Female Managers［Toyoda Gosei Co., Ltd.］ 50s, providing them with opportunities to exchange • Initiatives to reduce physical burden (use
employees can work long-term with assurance and development
of karakuri , other means)
continue to grow, as well as to incorporate more （Target） opinions with their peers and rethink such matters
（People）
40
diverse values and new perspectives and ideas into our 40

management. 30
30
25 Workplaces That Welcome People with Disabilities
For example, in training and support for the active 19
20
roles of female employees, we are strengthening our We view the hiring of people with disabilities as a disabilities can perform is identified, and they are
10 social responsibility, and make active efforts in this systematically hired and placed. As of the end of
training initiatives to encourage female employees 2
who aspire to become leaders by providing training 0 area. The Committee for Employment of People with FY2021 (March 1, 2022), 127 people with disabilities
2011 2019 2020 2021 2025 （FY）
to improve their management skills and actively Disabilities implements hiring, job assignments, had been hired for a hiring rate of 2.39%, exceeding
manager and supervisor education, and workplace the legally mandated employment rate of 2.3%.
・Challenge Programs: Educational program in which female manager candidates provide “Acquisition of settlement. We place particular emphasis on getting Our special subsidiary TG Welfare Co., Ltd. holds
Training and support management skills through training,” “Expanding range of experience with training rotation,” and “Sharing people settled in the workplace, monitoring conditions seminars for people with disabilities for the entire
for the active roles of and mutual advice of troubles or matters that are noticed through practice in the workplace.”
through regular care interviews, taking up problems, Group and serves in other ways to create places for
female employees ・Tea Meetings: A place where female employees can take up troubles and opinions and strengthen personal
networks
and formulating 3-year plans for improvement of the education and share information with 14 Group
workplace environment. We are also systematically companies that have received special Group company
Reforming the
・Workplace reform management class: A place to exchange opinions on voluntarily improving the installing restrooms for all with consideration of certification, achieving a hiring rate of 2.78% for the
attitudes and behaviors
of superiors
management ability of those in managerial positions, and change atmospheres and attitudes the workplace environment. Work that people with Group overall.

Employment Rate of People with Disabilities

Support for work-life • Enhancement of childcare leave, reduced working hours (systems exceed legal standards)
（％） Statutory employment rate Toyoda Gosei Co., Ltd. All domestic Group companies
balance • Introduction of telework (for office and engineering work since January 2021)
3.00
2.78 2.78
2.70
2.62
2.47 2.39
2.50 2.38 2.38
2.31
Local Executive Training 2.30
2.20
2.00
With 61 companies in 16 countries and regions around 2025, we are evaluating people with high potential 2.00
the world, we want our operations to be rooted in in each region and formulating plans for their We have formulated a three-year Training camp at TG Welfare Co., Ltd.
plan to improve the workplace envi- to support independence 0
the local communities that support sustainable development. We are also promoting the development ronment, and are making systematic
2017 2018 2019 2020 2021 （FY）

growth. For such business operations, we believe the of local personnel by introducing an introductory improvements such as installing re-
strooms with consideration of people
involvement of personnel who are familiar with local education and mentoring system and conducting with disabilities
business practices and culture is essential, and we “problem-setting problem-solving” training to
are actively promoting the appointment and training retain mid-career employees who are candidates for
of local executives at our overseas locations. To executive positions. In addition, Regional Succession
accelerate active promotion to such positions in each Committee (RSC) meetings are held in the Americas,
region, we established a basic policy and targets for Southeast Asia, and China to share the status of
the promotion of local executives (vice presidents and activities and issues related to the development and
above) in FY2020. Each business unit is working to recruitment of executive successor candidates. Annual
achieve these targets. reports are given at Global Succession Committee
With the aim of having 40% local executives by (GSC) meetings.

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Creating a Pleasant Corporate Culture Creating Systems and Environments for Flexible Working Styles and That Support
Increased Activity
We believe that it is very important to have both systems and environments in place for our employees to work with ■ Working Styles and Systems
energy and enthusiasm. In addition to measures to improve job satisfaction, we are actively working to improve
In addition to systems that exceed the legal require- children are born and by raising awareness through our
office environments, cafeterias, restrooms, and other facilities to provide safe and comfortable work environments
ments for support in balancing work with childcare, in-house newsletters.
and create a foundation on which each employee can demonstrate their abilities.
nursing care, and medical treatment, we are fostering a To help employees achieve a work-life balance, we
workplace culture of mutual consideration. In particular, also strive to create an environment where they can
Workplace Culture Reforms, Higher Employee Engagement as both men and women participate in childcare, we continue to work with a sense of fulfillment, using
actively encourage male employees to take childcare flexible work styles such as telework, shorter working
Toyoda Gosei is undertaking various activities to create the vision and mission for their division and declare
leave by reminding them of the system when their hours, and flexible work schedules.
a comfortable working atmosphere. how they will develop human resources and create a
In 2015, we launched the “Five Articles for Officers” positive culture. Major Systems for Childcare Support Company-Wide Average Overtime Hours［Toyoda Gosei Co., Ltd.］
with the aim of fostering workplaces where people can Although progress was made in reforming the Amount required by law System exceeding laws （h/month）
20.1 19.3
20
speak their minds freely and a culture that encourages corporate culture through these ongoing measures, Timing/event 17.0

Delivery date

4th grade

7th grade
Pregnancy
Subject

1st grade
1 yo

2 yo

3 yo
bottom-up proposals and initiative, as well as a compa- in 2021 we started an engagement survey and have System 12.3
Special 10.0
ny ekiden relay race to improve vitality and solidarity. been monitoring internal conditions to make further parental leave
M/F 10

These activities produced changes in the atmosphere improvements by quantitatively measuring employee Special Mainly
within the company, but to further raise employees’ job satisfaction and other parameters. We will continue paternity leave men
0
Childcare leave 2017 2018 2019 2020 2021 （FY）
sense of accomplishment and satisfaction in their our efforts to improve employee engagement by at birth
M/F

work, in April 2019 we started the Management addressing issues that are identified in the surveys. Annual Paid Leave Taking Rate［Toyoda Gosei Co., Ltd.］
Childcare leave M/F
Declaration Activity. The heads of all divisions clarify （％）
Reduced 100 94.4 95.3 97.3
M/F
working hours*1 79.6*2 79.5*2
Trends in Initiatives to Improve Employee Engagement Restrictions on overtime,
M/F
late-night work
Behavioral 50
change Special sick/injured M / F
childcare leave
10 days/year

In addition to the above, we have other generous programs such as Special 0

Initiatives to improve engagement Raising Children Support Leave so that parents can attend children's events or deal 2017 2018 2019 2020 2021 （FY）
of job with school closures and a Holiday Childcare Subsidy to subsidize the cost *2 There were company shutdowns due to COVID-19
Labor and management initiatives are made with an emphasis on the senior generation, mid-level and young
satisfaction of using a private daycare center on holidays that are working days for the
employees, and supervisors (career support for young workers, postponement of retirement to age 65, etc.)
company. Other programs include a Special Childcare Work Exemption and
Initiatives of superiors to communicate vision and thoughts interviews before taking childcare leave and before returning to work. Number of Men Who Took Childcare Leave［Toyoda Gosei Co., Ltd.］*3
Workplace *1 4-hour workday up to first grade of elementary school, 6/7-hour workday
Communication Empathy Penetration Expansion
culture up to fourth grade of elementary school
（People） No. of people Percentage （％）
reform 50 25.0
Two-way communication, Five Articles for Officers, facilitation of new work styles (telework, remote conferences) 20.9
Major Systems for Care Support 40 20.0
2015～ 2019 2020 2021 2022
Amount required by law System exceeding laws 30 37 15.0
10.5

3 years
93 days
1 month

6 months

1 year
Subject
20 10.0
4.5 4.9 18
Example of Workplace Culture Reform Activities 10 3.0 5.0
Care leave M/F
6 9 8
0 0.0
Five Articles for Officers Care day off M/F 10 days/year 2017 2018 2019 2020 2021 （FY）
1. I will greet people with a smile *3 No. corresponding to the year when childcare leave was started
2. I will listen to team members
System to Support a Balance Between Work and Medical Care
talk until they are finished
3. I will say “I appreciate your • Reduced working hours　　　• Half-day work
efforts” for positive information • Relaxation of upper restrictions on telework
from team members, and “Thank
you” for negative information
■ Workplace Environment
4. I will back team members who
take on challenges, and assume We strive to create workplace environments where
Company ekiden relay race
responsibility each and every employee can work energetically and
5. I will try to make myself better play an active role. We are improving the company
understood
environment to create safe and comfortable workplaces
We aim to create an environment in for our employees by renovating break rooms used
which anything can be discussed freely, by employees on manufacturing floors, installing
with officers themselves leading changes
(this year is the 7th year) restrooms for everyone, including disabled and LGBTQ
employees, and establishing a “hot desking” system
and satellite space in offices to promote flexible and Miwa Technical Center (satellite space) Headquarters office (hot desking)

efficient work styles that are not limited by location.

Employees cheering for volleyball team

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Safety and Health Health Management

Basic Policy for Safety and Health We conduct health management activities so that all people working in the Toyoda Gosei Group can continue
working in both mental and physical health.
The Toyoda Gosei Group considers employee safety and mental and physical health to be one of the most important
management issues, and we do our best to ensure secure and pleasant workplace environments for all business activities. To Achieve “Boundless Creativity and Social Contribution”
1. We believe the health of our employees is an important management resource and will strive to foster an
Safety and Health Initiatives Health organizational culture that puts safety and health first.
Declaration 2. We will strive to create positive and lively workplaces where employees can work energetically, and develop our
In the Toyoda Gosei Group, safety and health declarations are made and company activities are spread based on personnel.
the above basic philosophy. 3. To help improve the health of employees and their families, we try to raise health awareness for disease prevention.
1. Compliance with laws and internal regulations and standards related to health.
Safety and
2. With “safety before all” foremost in mind, thorough safety-first behavior by all employees.
Health Promotion System
3. Cultivation of a culture of safety in which activities are conducted with a sense of
Declaration ownership and there is mutual development with participation by all employees. With the aim of upgrading health management, the mental and In addition, activity reports are given and approvals are obtained
physical health committees were merged to form the Health and in our Central Safety and Health Committee, which then spreads
Happiness Promotion Council in FY2022. Aiming not only for good these measures to the Safety and Health Committees in each place
Promotion System health but also for happiness in work, industrial physicians and the of business.
A Central Safety and Health Committee (meets 4 times/year) In addition to the deliberation results of the Central company’s Human Resources Division, health insurance union, and Central Safety and Health Committee (meets 4 times/year)
is organized with the executive in charge of safety as the Safety and Health Committee, safety information is sent out labor union come together to discuss management for health and
Health and Happiness Promotion Council (meets 4 times/year)
chairperson. Meetings are attended by the company president, repeatedly in the President’s New Year message and company well-being, with the Safety & Health Promotion Division acting as
Safety and health committee at each location (meets once/month)
labor union chairperson, plant managers of all locations newsletters. The entire Toyoda Gosei Group carries out these executive office.
in Japan, and the presidents of domestic and international activities. For suppliers, efforts are made to regularly share all
subsidiaries. Various measures related to safety and health relevant information through procurement liaison meetings Health Management Activities and Certifications/Awards
are reported and discussed, and the results are reported to the and other means.
The ability of each employee to work with energy and health into quantitatively evaluating investments, effectiveness, and resources.
Board of Directors.
the future is essential as a foundation to fulfill our corporate social We have also formulated Challenge 8 as a health KPI to promote
responsibility as stated in Toyoda Gosei’s management philosophy. health management. The eight items of weight, breakfast, alcohol
Targets/Achievements
In recognition of this, we are promoting health management to consumption, snacking, smoking cessation, exercise, sleep, and stress
We believe it is the company's responsibility to ensure that *1 Grave: death maintain and promote the health of our employees. are numerically assessed, and targets have been set for each fiscal
*2 Serious: Victim loses part of body (or function)
everyone who works on our premises returns home in the *3 STOP 7: Seven things with which there is a possibility of serious injury: A strategy map based on the Ministry of Economy, Trade and year through FY2025.
same good health as when they arrived at work. We have (1) being pinched or caught in a machine, (2) heavy objects, (3) falling Industry’s Guidelines for Administrative Accounting of Investment in In recognition of our past health manage-
objects or people, (4) electric shock, (5) vehicles, (6) hot material,
implemented various measures to achieve our goal of zero explosives, gas, (7) severance Health and Productivity Management was created for the purpose of ment activities, we were recognized for the
grave,*1 serious*2 and STOP 7*3 accidents on a global basis. Occurrence of Grave and Serious STOP 7 Accidents［Global］ quantitatively showing health management initiatives and results, first time by the Ministry of Economy, Trade
We are working to eliminate accidents so that our employees (Including various contractors) and implementing the PDCA cycle for activities. We will promote and Industry as a Health and Productivity
（Incidents）
can focus on manufacturing with safety and security even Grave accidents Serious STOP 7 accidents health management in a continuous and effective manner by Brand in 2022.
4
when faced with sudden production volume fluctuations
due to COVID-19 or other factors. This includes preventing Raising Health Awareness and Changing Behaviors
recurrence, conducting risk assessments and various 2 2
2
safety audits for advance prevention, providing safety and We are in the seventh year of our workplace-based health promotion physical and mental health.
1 1
health education by job level to raise safety awareness, and activities, one of the programs to achieve the goals in Challenge 8. We are also working on activities to
conducting ongoing KYT (hazard prediction training) activities. 0 The number of participants has increased year by year, and in FY2021 raise health awareness and promote
0
2017 2018 2019 2020 2021 （FY） reached 96.8% of all employees. More than 80% of the 316 participating behavioral change by holding walking
teams have an exercise theme, and each workplace has a fun and creative events during long weekends and
Domestic and International Subsidiary Audits way to promote health and wellness. In FY2021, we also introduced the holidays using the Aichi Health Plus app A workplace that takes stretching
as a theme in workplace health
new theme of Sleep and Mental Health to promote activities for both distributed by Aichi Prefecture. promotion activities
We have been using safety and fire prevention maps (SFPM) workplaces where acting safely (hazard avoidance) is second
since FY2020 for the purpose of understanding the safety nature and people point out hazards to each other. KYT
Initiatives to Maintain and Improve Women’s Health
and fire prevention levels at our domestic and internation- competitions have also been held in India and China.
al subsidiaries and rectifying weaknesses. In FY2021, we We place great importance on activities that support the health of increase in the cancer screening application rate in FY2022.
established uniform assessment items based on the results working women. Our first Women's Health Week event was held in March We are also trying to support women who are returning to work after
of voluntary assessments at each company. We have been 2022 with the aim of improving women's health literacy. A special parental leave by providing information on consultation services and
conducting audits and providing support at 13 domestic meal (Pink Ribbon Lunch) was served in the cafeteria, information self-care information
subsidiaries three times a year (39 times in total) through on- was provided via panels, flyers, and digital signage, and self-check to help them balance
site inspections to further raise the level of safety. goods were distributed to raise awareness of breast and uterine cancer childcare and work
Particularly in the area of disaster prevention, we have screenings. In collaboration with the health insurance union, leaflets to from a health per-
been conducting KYT activities with the aim of further improve the cancer screening rate were distributed to people in their spective.
“Pink ribbon lunch” provided during Women’s Health
improving KY (hazard prediction) capabilities and creating First-place team in the first Indian KYT conference (TGSIN TPS section team) 20s, in whom the screening rate is particularly low. This resulted in a 5% Week and information being provided at event

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Supply Chain Management Strengthening Our Relationships with Suppliers

Every April, we hold procurement policy briefings where we and share information on production volumes, quality,
explain our management philosophy, the business environment compliance, and cybersecurity. In addition, we hold seminars
Basic Procurement Policy and company policy to about 250 of our major suppliers on carbon neutrality and other social issues.
The Toyoda Gosei Group has set a basic procurement policy based on the idea of coexistence and co-prosperity with in Japan. After sharing our initiatives and targets related to In FY2020, we established Management Troubleshooting
our suppliers. We aim to deepen our partnerships with suppliers while achieving sustainable growth for us both. safety, compliance, sustainability, quality, production, and Consultations for suppliers and other business operators. We
cost, we hold regular discussions to confirm results and make receive candid inquiries from them on various management
1. Optimum Global 2. Mutual Growth Based on 3. Moving Toward Sustainable improvements through anticipated value roundtables. issues, including corporate management, finance, human
Procurement Mutual Trust Societies We hold procurement liaison meetings six times a year to resources, and legal matters. This is done in small groups,
We procure the best raw materials, We aim to raise the collective Toyoda Gosei has set activity norms as introduce examples of fire and disaster prevention initiatives where we try to give advice on effective solutions.
Basic products, and equipment fairly strength of the Toyoda Gosei guidelines for initiatives that should
Procurement from a global perspective while Group based on open and fair be made for the SDGs and other social

Policy
considering cost, quality, technol- relationships with suppliers, issues, and shared them with suppliers Support for Suppliers so That We Can Grow Together
ogy, and production. strengthening our mutual in carrying out activities. We also aim to
We also welcome proposals from corporate cultures, introducing ensure complete legal compliance and
suppliers for new technologies and innovative management, and confidentiality in corporate activities,
To support our suppliers, we implement various initiatives In 2022, the Kyowa-kai held the Winning (Value)
methods and new products. building mutual trust. including our supply chain. from the perspective of safety, quality, cost and production. Technology Exhibition with the aim of strengthening
Safety initiatives include prevention activities based on fire each other’s competitiveness by, for example, leveraging
prevention inspections of painting and other production the knowledge that suppliers have developed to enhance
Toyoda Gosei’s Supply Chain equipment and risk assessments. Initiatives related to the added value of our products. The introduction of each
production include manufacturing site improvement company's special technologies, value-added products,
The number of suppliers we have direct dealings with Products/ Materials/
parts equipment
Other Total through manufacturing reform activities. Both of these areas and sustainability
is 419 for products and parts and 327 for materials
are related to personnel development. activities for carbon
and equipment. When suppliers not in those areas are Number of suppliers
419 327 26 772 We also provide indirect support for the activities of neutrality and
[Toyoda Gosei Co., Ltd.]
included, the total number is 772 companies.
the Kyowa-kai, an organization formed by suppliers for other matters will
the purpose of mutual improvement and sharing of best lead to the creation
Global Collaboration practices, and are involved in their activities for human of new value and
As our business expands globally, we are collaborating hold discussions to resolve issues related to quality, resource development and to achieve carbon neutrality. corporate growth
with purchasing managers in each region to further cost, and delivery (QCD), and well as environmental During Supplier Month (December), we once again express throughout the
promote local procurement, with consideration of issues and other sustainability activities. We are our sincere appreciation for the daily efforts of our suppliers supply chain. The Winning Technology Exhibition, held in
September 2022. Approximately 700 visitors
quality, cost, risk avoidance, and all other parameters. also strengthening our global procurement network and try to strengthen our support for their sustainability attended the exhibition of various “value

Global Procurement Liaison Meetings are held twice through mutual support, such as sharing buyer activities. techniques” from participating companies

yearly as a forum to share information. At these education materials and localization information.
meetings, regional managers share information and Monitoring Supplier Information
We ask suppliers with whom we have ongoing business to as soon as possible and solve problems.
Business with New Suppliers submit a supplier survey form on management information We also conduct supplier evaluations, including QCD, to
We have an entry form on our website for open dialogue other factors, to manage risks starting from our first at least once a year. The submitted information is shared better understand each company's strengths, weaknesses,
regarding new proposals and business dealings. transactions. with the entire Purchasing Division. If there are major and challenges before considering the details of our business
In addition to QCD assessments at the start of new At the same time, together with the signing of changes, we visit the supplier and conduct interviews to transactions.
business dealings, we also check the status of the contracts and memorandums of understanding, we quickly grasp the changes that have occurred, mitigate risks
other party’s management activities based on their explain the various guidelines that Toyoda Gosei has
level of support for our sustainability guidelines and developed and seek their understanding. Employee Education and Training
We strive to follow the “Toyoda Gosei Guidelines for and circumstances. The Procurement Subcommittee holds
Initiatives for Sustainability Over Entire Supply Chain
Business Ethics” so that each and every employee engaged regular monthly meetings to ensure that procurement
Based on rising expectations for sustainability initiatives With regard to the environment, CO2 reductions, recy- in procurement operations can conduct their activities in a activities correspond to various changing social conditions,
in companies, we have created Supplier Sustainability cling of resources including waste, and control of chem- manner that is open, fair and equitable toward suppliers. and all Purchasing Division members are given compliance
Guidelines and requested that our suppliers thoroughly ical substances is demanded in our Green Procurement To achieve sustainable societies, we also make efforts (subcontracting laws, bribery, etc.), safety, and carbon
understand and practice them. We also provide self- Guidelines. For conflict minerals, we ask suppliers to be throughout our supply chain with a view to social issues neutrality information.
check sheets for early measures when potential risks are responsible in their procurement of resources and raw
noticed, and ask companies to conduct self-assessments. materials. Once a year we conduct a survey on conflict Participation in Relevant Associations and Initiatives
These guidelines set policies related to human rights materials with the cooperation of all our suppliers.
and labor, the environment, compliance, and other As described above, we are accelerating initiatives We participate in industry associations such as the Japan Building promoted by the Ministry of Economy, Trade and
matters. In addition to social aspects (child labor, needed for sustain- Auto Parts Industries Association ( JAPIA) and the Japan Industry.
forced labor, no discrimination and equal opportunity, able growth over our Rubber Manufacturers Association ( JRMA). Our company We are also participating in the revision of the JAPIA BCP
freedom of association, reduction of long working entire supply chain, president serves as an officer (director) of JAPIA. Guidelines by the general affairs committee of JAPIA for
hours, compliance with minimum wages, and health matched to the Through our activities in these industry associations, not only earthquakes but also wind and water damage and
and safety), we ask suppliers to observe environmental various changes in we seek to achieve sustainable growth together with our pandemics. In this and other ways we are contributing to the
aspects such as water use and biodiversity. social conditions. suppliers, such as through the Declaration of Partnership formulation of BCPs by suppliers in the auto parts industry.

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 Contents About Toyoda Gosei Value Creation Story Value Creation Strategy Foundation of Value Creation Data

Social

Uniform Global Quality Assurance Contributing to Local Communities

Commitment to Quality Assurance Contributing to the Development of Sustainable Communities

Under our basic quality policy, we guarantee quality at quality into new products through our Initial Manage- The Toyoda Gosei Group wants to earn the trust of agement philosophy, we are active globally in the
every step from development to production for “Customer ment System, which checks how well each process is society through all its business activities, including four areas of social welfare, environmental protection,
First” and “Quality First” principles. done, from planning to design and production. not only the development and manufacture of youth development, and community crime prevention.
For our quality assurance systems, we have obtained *1 Incorporates the know-how and rules for quality improvement in the Toyoda products that satisfy customers worldwide, but also Together with these activities, we have continued to
Gosei Group
certification under the international standards ISO 9001/ environmental preservation and social contribution. support disaster recovery following the Great East
IATF 16949 and have established a quality management Gate Control by Initial Management System To be a good corporate citizen, as stated in our man- Japan Earthquake in 2011.
3 months
system. We are also working to strengthen quality as-
surance throughout the Group using the Quality System Product Product Production Mass

Gate

Gate

Gate

Gate
Global Standards*1 as common rules. We pursue quality planning design preparation production
that meets customer expectations by reliably building

TQM for a Stronger, Better Company

Based on the basic principles of TQM,*2 we are raising product Contributions to Food Banks Afforestation Project Boys and Girls Invention Club Traffic Safety Patrols

and work quality and individual and organizational vitality.

Company-wide TQM activities are undertaken to create a Customer
Creation of Fostering a Sense of Unity Between Employees and the Community Through Sports
customer
flexible and resilient corporate character. In addition to our first expectations
Through the promotion of sports, the Toyoda Gosei
conventional kaizen activities, including Workplace Management
TQM TQM Group aims to foster a sense of unity between
Kaizen Activities and Small Group Activities, we are building a
Reforms Individual employees and the community, and to contribute to
new TQM philosophy with the concept of “changing the way Constant Participation and thoughts, actions,
improvement by all bright, prosperous, and vibrant societies.
we work in anticipation of coming changes,” and sequentially innovations and coordination
In FY2021, the Wolfdogs Nagoya volleyball team,
spreading these new TQM activities in the Group. Fundamental principles of TQM New TQM philosophy
*2 Total Quality Management
a regular contender for the No. 1 spot in Japan's top
league, won the Emperor's Cup. The Toyoda Gosei Blue Wolfdogs Nagoya Blue Falcon Scorpions
Falcon handball team won the league championship Volleyball team Handball team Basketball team
Development of Human Resources for Future Business and Environmental Changes and the Japan Championship. The Toyoda Gosei
We established the Quality Learning Center as a place to foster “Customer First” mindset. Scorpions basketball team is active in the B3.LEAGUE.
a mindset in which all members of the Toyoda Gosei Group, In addition to the official team games, Entrio,
■ Training Personnel with Digital Analysis Skills
including suppliers and overseas locations, can think and act which opened in FY2020, embodies our philosophy
With the recent utilization of big data and the rapid ex-
in a “Customer First” and “Quality First” manner. In addition to by hosting local events that serve to create a lively
pansion of DX, the ability to analyze data has become an
the company's quality history and examples of quality kaizen atmosphere through interaction with the community.
essential skill. We are strengthening the practical education,
that embody the TG Spirit, we use this as a place to repeatedly including industry-academia collaboration,*3 of people who
learn about initiatives as we move toward the future. can use statistical quality
Toyoda Gosei Memorial Gymnasium (ENTRIO)

In addition, during “Global Quality Month” in November control (SQC) and machine
each year, everyone makes a “Declaration of Thought and learning (ML).
Action” in their position and role. Through this and the *3 Experts from Shiga University and the
I want to contribute to Today the idea that all business activities should contribute
establishment of regular opportunities for everyone to Toyota Group serve as instructors

reflect on their own actions, we try to firmly establish the Toyota Group machine learning dojo
solving social issues to solving social issues is becoming more prominent in the
through corporate sports world. However, I felt that when I joined Toyoda Gosei there
was already a culture within the company which held the idea
Manufacturing Quality Assurance and Continuous Improvement Activities Shigeru Tanaka
that “a company is a public institution in society and that it
Manager
In order to deliver safe and secure products to our cus- human resources, developing processes, and preventing Toyoda Gosei Blue Falcon should naturally therefore contribute to the local community.”
tomers around the world, we are executing defect-free recurrences, and then conduct kaizen . At the stage when I believe that there are many aspects of corporate sports that
process completion centered on production processes we achieve our targets, the supervisor gives an “Assurance can contribute to society as well as to the company.
for safety parts, which are directly related to the basic Declaration” to the company president on-site. With the For example, teaching handball to local children in
performance (running, turning, and stopping) and safety aim of quality that will earn the trust of the customers English, or having Toyoda Gosei play a match against a
of vehicles. Audits and improvements by certified auditors globally, we undertake this activity with the participation world-class team for them to watch. We hope to come up
are also conducted for safety part production processes. and concerted effort of the entire Toyoda Gosei Group. with many ideas that would be beneficial to the community
and the company, and create a model plan to put them into
■ Ongoing “Quality Assurance Declaration Activities”
practice. The Blue Falcon is committed to being a strong
We cultivate a workplace culture of continuous improve-
The Japan League Championship bridge between the company and the local community
ment and have conducted “Quality Assurance Decla-
and to the team's mission of building a strong team that is
ration Activities” since 2012 with the aim of creating
trusted by the company and the local community.
manufacturing floors that can cope well with changes. “Quality Assurance Declaration Activities” in local confirmation meetings with
We identify issues from the three angles of developing the company president (left: Japan, right: North America)

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 Contents About Toyoda Gosei Value Creation Story Value Creation Strategy Foundation of Value Creation Data

Building and operating transparent

Governance
management systems to further enhance
Groupwide corporate governance Corporate Governance System

We are working to enhance corporate governance throughout the Toyoda Gosei Group so that Shareholders' Meeting Main Meetings &
we can continue to be a trusted company. To create a fair and transparent corporate governance Committees
Appointment/ Appointment/ Appointment/
system, while we ensure its effectiveness through management supervision and audits by outside Dismissal Dismissal Dismissal
● Board of Directors
directors and outside Audit & Supervisory Board members, we improve the appropriateness and Audit Audit & Cooperation ● Sustainability Meeting
Board of Directors Supervisory Board Accounting Auditors
efficiency of our operations by developing and operating an internal control system. Furthermore, ● Chief of Headquarters

we are also promoting legal compliance, corporate ethics, and risk management activities. Appointment/
Consultation Report
Meeting
Dismissal ● Management Meeting
Submission/
Report Supervision Executive Executive Audit Audit & Audit
Report Functional Meetings
Appointment Compensation Supervisory Board Dept.
● Sales and Technical
Committee Committee
Meeting
Corporate Governance Business Execution System
● Research and

Development Meeting
● Profit and Cost Meeting

President ● Production and

Direction/Supervision
Basic Philosophy Purchasing Meeting
Report ● Human Resources Meeting
Business Execution Company Meetings
We view the enhancement and strengthening of corpo- Additionally, Toyoda Gosei pursues consummate cor- ● IT Planning Meeting
Audit
rate governance with the aim of ensuring sound and ef- porate governance by voluntarily implementing a range of Audit Div. Corporate Officers Submission/ Management Meetings Committees
ficient corporate management to be crucial in achieving policies in accord with the letter and spirit of the ideals and Cooperation with Audit & Report ● Internal Control Committee
Supervisory Board and Functional/ ● Export Control Committee
sustainable growth. Based on this, we are building and principles in Japan’s Corporate Governance Code, formu- Accounting Auditor
Business Divisions Decision/
Functional Meetings
● Central Safety and
maintaining fair and transparent management systems lated and revised in June 2021, by the Financial Services Approval
Health Committee
and organizational systems that can respond precisely to Agency and the Tokyo Stock Exchange. Subsidiaries Committees
● Carbon Neutrality and

environmental changes. Environmental Committee

● Quality Committee

Corporate Governance System

Sustainability Meeting
Toyoda Gosei has adopted an audit and supervisory board bers and holds regular meetings. Members also attend im-
system and set up the shareholders’ meeting, Board of portant meetings such as Board of Directors’ meetings and In November 2021, we established our new Sustain-
Frequency Generally meets twice yearly
Directors, Audit & Supervisory Board, and accounting audit each department and subsidiary, through which they ability Meeting with the aim of achieving sustainable
auditors as statutory entities. We have also put in place fulfill their function of auditing corporate management. corporate growth, improving corporate value, and con-
Chairperson President
internal auditors and other internal control systems including Accounting auditors are external auditors who com- tributing to the sustainable development of society. At
internal audits. The Board of Directors consists of nine bine auditing functions with a commitment to ensuring this meeting we work diligently to discuss and decide All Directors and Audit & Supervisory Board
members (including outside Directors and Audit
directors and holds regular monthly meetings (extraordinary an independent and fair auditing system. The Company on key action items related to sustainability, and con- Members
& Supervisory Board members), and Chief of
meetings held as needed), where matters prescribed by law adopts the current system because audit, supervisory, firm how the initiatives are progressing. The meeting Headquarters
or in the Articles of Incorporation and important matters and execution functions are well coordinated with each is attended by all executives, including outside direc- ・Make decisions on key action items related to
related to corporate management are reported, discussed, other under this structure, with legality and efficiency of tors and outside Audit & Supervisory Board members sustainability
・Report situation on key action items and target
and resolved. the Company's decision-making and business execution to ensure that the Group’s sustainability measures are Main Agenda
value
A system of corporate officers is used to speed up sufficiently ensured. implemented in a well-balanced way with transparency ・Make decisions on important external
decision-making and business execution. For important Also, in order to strengthen the supervisory function of and a high degree of objectivity. disclosure items

business matters, division chief meetings and manage- the Board of Directors and to increase the objectivity and
ment meetings are held monthly. Functional meetings transparency of the decision-making process, we have estab-
and committee meetings relevant to key areas such as lished the Executive Appointment Committee and Executive Executive Compensation Committee and Executive Appointment Committee
technology, costs, and personnel are also held as needed Compensation Committee under the Board of Directors as Toyoda Gosei’s Executive Compensation Committee directors. The chair of both committees is appointed
to ensure appropriate management decisions. non-mandatory advisory committees. and Executive Appointment Committee are composed from outside directors to further enhance transparency
The Audit & Supervisory Board consists of five mem- of members of which more than half are outside and objectivity. (Each committee met once in FY2021)

Name Role Members Name Role Members

Internal Control Systems
Toru Koyama, president, Toru Koyama, president,
In accordance with the provisions of Japan’s Companies Toyoda Gosei and its subsidiaries, all Group companies Deliberates and reports
Deliberates and reports on Naoki Miyazaki, director, Naoki Miyazaki, director,
Act, Toyoda Gosei has formulated a Basic Policy on Estab- share its management philosophy. The Toyoda Gosei Group on proposals regarding
the compensation system Sojiro Tsuchiya, outside Sojiro Tsuchiya, outside
Executive Executive the appointment and
lishing Internal Controls. Under this policy, we are striving Charter for Business Ethics, a shared guideline for compli- for directors and their director, director,
Compensation Appointment dismissal of directors and
to ensure appropriate operations by establishing internal ance, has also been instituted and expanded to subsidiaries. individual compensation Kimio Yamaka, outside Kimio Yamaka, outside
Committee Committee Audit & Supervisory Board
(restricted stock-based director (chairperson), director (chairperson),
control systems, which help us deliberate important mat- While respecting the independence of subsidiary manage- members (appointment
compensation, etc.) Mayumi Matsumoto, Mayumi Matsumoto,
ters, establish related rules and guidelines, and handle ment, we receive regular business reports from subsidiaries of the president, etc.)
outside director outside director
internal audits, compliance and risk management. Every and set up systems to confirm the propriety and legality of
year, the Board of Directors checks the status of establish- subsidiaries’ businesses through advance approval reports.
ment and operation of internal controls in an ongoing ini- We also send non-executive directors and Audit & Super-
tiative to improve and reinforce them. visory Board members to key subsidiaries in a system to
To cultivate a healthy internal control environment at monitor and act as a check on their business execution.

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 Contents About Toyoda Gosei Value Creation Story Value Creation Strategy Foundation of Value Creation Data

Governance

Skills Matrix
Changes In Numbers of Directors and Audit & Supervisory Board Members
Manufacturing New Attendance at Board of Directors’
Position Executive Executive
In 2012, Toyoda Gosei adopted a system of corporate or one-third of whom are outside directors. One of Name at Toyoda Appointment Compensation
Corporate
Governance
Overseas (production/
Technology Sales Finance Personnel
Environment
DX
business (BoD) , Audit & Supervisory
management operations quality and energy (non- Board (ASB) meetings
officers and downsized its Board of Directors to nine the outside directors is a woman. The outside director Gosei Committee Committee
management) automotive) (Apr. 2021–Mar. 2022)
directors from 23 as of 2011. It appointed its first appointments have increased the Board’s objectivity
Toru
outside director in 2015. and diversity. Koyama
President ○ ○ ● ● ● ● ● ● 13/13 (BoD)
The Board currently comprises nine directors, three
Tomonobu Executive Vice
● ● ● ● 13/13 (BoD)
Yamada President
Directors（People） Outside Director Ratio Female Director Ratio
23 Hiroshi
Director ● ● ● ● ● ● ● 13/13 (BoD)
Yasuda

9 0％ 33％ 0％ 11％ Masaki

Director ● ● 13/13 (BoD)
Oka

Takashi
Director ● ● ● ● ● 13/13 (BoD)
2011 2022 2011 2022 2011 2022 Ishikawa

Audit & Supervisory Board (ASB) members（People） Outside ASB Member Ratio Female ASB Member Ratio Naoki
Director ○ ○ ● ● ● ● ● ● ● 13/13 (BoD)
Miyazaki
５ 5
Sojiro Director
○ ○ ● ● ● ● ● ● 13/13 (BoD)
Tsuchiya Outside Independent
60％ 60％ 0％ 20％ Director
Kimio
◎ ◎ ● ● ● 13/13 (BoD)
Yamaka Outside Independent

2011 2022 2011 2022 2011 2022 Mayumi Director

○ ○ ● ● 13/13 (BoD)
Matsumoto Outside Independent
Main Initiatives to Strengthen the Governance System 13/13 (BoD)
Kenji Oiso ASB member ●
2012 2015 2019 2020 2021 2022 12/12 (ASB)
Yamato 11/11 (BoD)
● Reduced the ● Changed the ratio of outside directors to one in three Suzuki ASB member ●
10/10 (ASB)
Board of number of directors （appointed in June 2021）
● Established the Executive ● Appointed independent outside directors as chairs of
Directors, appointed Chika ASB member 13/13 (BoD)
Compensation Committee both committees ● ● ●
Audit & Kako Outside 12/12 (ASB)
and the Executive
Supervisory ● Appointed a female member of the Audit & Supervisory
Appointment Committee ASB member 13/13 (BoD)
Board Board Hideomi
● ● ●
● Appointed a female director Miyake Outside Independent 12/12 (ASB)
Hitoshi ASB member
Business ● Introduced a corporate ● Reduced the number of corporate officers Kuwayama Outside Independent ● ー
Execution officer system （appointed in June 2022）

System ● Began adhering to the Japan’s Corporate Governance Code Note: “ ◎ ” denotes the chairperson.

● Established the Sustainability

Meeting Board of Directors
● Corporate Conduct ● Changed name to the Compliance ● Changed name to
The Board of Directors deliberates from many differ- appropriately. In addition to strengthening the Com-
Meetings & Ethics Committee and Risk Management Committee the Internal Control
Committees Committee ent angles on the direction of management, including pany’s internal control system and risk management
● Environmental Committee ● Changed name to the Carbon management and business strategies, then reports system, in recent years the Board of Directors has been
Neutrality and Environmental and discusses on progress after any necessary reso- working to achieve sustainable corporate growth amid
Committee
lutions have been passed. In such a way, the Board a chaotic business environment of political instability,
supervises from a number of different viewpoints on worsening environmental problems, and COVID-19
whether management strategies are being executed pandemic.
Policies and Procedures to Appoint and Remove Senior Officers and Nominate
Candidates for Directors and Audit & Supervisory Board Members Main Matters Discussed by the Board of Directors in FY2021 Number of Matters Discussed by the Board of
Directors in FY2021
Theme Main matters discussed
Nominations of candidates for directors and Audit & corporate ethics. 1Q 2Q 3Q 4Q Total
Supervisory Board members are made after deliberation The nomination policy for Audit & Supervisory ・Domestic and overseas subsidiaries’ business strategies
(expansions, mergers, downsizing) Matters
and reporting by the Executive Appointment Commit- Board member candidates is to comprehensively 21 3 7 11 42
Management/ ・Conclusion of alliance agreements Resolved
tee, followed by a resolution of the Board of Directors nominate candidates from the perspective of putting Business Matters
strategies ・Business execution reports (results, production, quality, safety, 12 6 10 7 35
then at a Shareholders’ Meeting. the right person in the right position while ensuring Reported
technology/development, priority risk management, etc.)
The nomination policy for senior officer and direc- a balance between diverse perspectives on corpo- ・Progress report on matters resolved by the Board Total 33 9 17 18 77
tor candidates is based on the candidate’s popularity in rate management, including knowledge of finance,
・Revisions to Board rules　　・Financial results, etc.
terms of their ability to make accurate and prompt deci- accounting, and legal affairs, and knowledge of the ・Appointment of directors and Audit & Supervisory Board
sions after taking into account the balance of knowledge, Company’s business. Corporate members / Appointment of executives　
experience, and capabilities of the management team If a candidate for senior officer or director is found to ・Sustainability measures　　・Internal control systems
and the Board of Directors as a whole. The candidates are have committed any fraudulent act or seriously violated ・Executive compensation

comprehensively nominated and appointed on the basis any law or regulation, or the Articles of Incorporation, ・Investment in buildings and facilities following expansion of
of their ability to wholeheartedly comply with laws and we will take procedures for their dismissal. Investment and domestic and overseas production bases
Loan Projects
・Financing for overseas subsidiaries

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Governance

Evaluation of the Effectiveness of the Board of Directors Expected Roles of and Support for Outside Directors
Effective functioning of corporate governance is es- for outside officers. However, the Board’s discussions All three outside directors possess a wealth of experi- operations. Additionally, they are briefed in advance on
sential for the Company's sustainable growth, to on medium- to long-term policies, which have been ence and keen insight. the content and background of resolutions to be voted
enhance corporate value, and to contribute to the regarded as an issue for some time, were evaluated Mr. Tsuchiya’s experience and expertise lie in glob- on at Board meetings to facilitate sound decision-mak-
sustainable development of society. Therefore, to en- as needing further improvement. Outside directors al strategy and production engineering; Mr. Yamaka’s, ing.
sure the effectiveness of the roles and responsibilities stated their opinions on ensuring greater opportunity in finance and the environment; and Ms. Matsumo- At the same time, the outside directors advise man-
of the Board of Directors, evaluations and opinions for face-to-face discussions among directors, and for to’s, in the environment and SDGs. Ms. Matsumoto is agement on company direction and business challenges.
are heard every year from members of the Board. having the chance to once again make on-site visits to Toyoda Gosei’s first female director. Advisory opportunities include regularly scheduled
The Board of Directors then analyzes, evaluates, and understand the actual situation on the front line, both The three adeptly fulfill monitoring and advisory liaison meetings attended by all outside directors and
deliberates on measures for improvement. In FY2021, of which had been suspended due to the pandemic. roles in addition to actively participating in Board dis- outside Audit & Supervisory Board members, each of
debriefings with all nine directors and all five Audit & Accordingly, Toyoda Gosei is now taking measures to cussions. In their monitoring role, they receive support whom attends various other meetings also, including
Supervisory Board members were conducted to assess improve communication through direct, on-site visits in the form of departmental briefings on business oper- the Sustainability Meeting, Sales and Technical Meeting,
their performance. As a result, Toyoda Gosei found by conducting tours of business sites and arranging ations and challenges and direct access to frontline op- Carbon Neutrality and Environmental Committee, and
no material deficiencies across any of its assessments roundtable discussion-type meetings to exchange views. erations through on-site visits to domestic and overseas ad hoc meetings.
and concluded that the Board continues to function Opinions were also expressed with an eye on the future, subsidiaries to better understand the actual state of
effectively. addressing the need to add more diversity to the Board.
Of particular note, the Board received high ratings As such, Toyoda Gosei will continue to strive to ensure
Directors and Audit & Supervisory Board Members
for its openness and candid discussions, its agenda diversity by highlighting the experience and expertise
that focused heavily on key issues, and its support required for the growth of the Company in a skills matrix. At its annual Shareholders’ Meeting, held on June Supervisory Board member. Including Chika Kako and
16, 2022, Toyoda Gosei appointed Sojiro Tsuchiya, Hideomi Miyake, who are currently in office, a total
Board Effectiveness Evaluation Process
Kimio Yamaka, and Mayumi Matsumoto as outside of three outside Audit & Supervisory Board members
Evaluation Interview: Nine directors and five Audit & Debriefing Items ・Roles and responsibilities of directors directors and Hitoshi Kuwayama as an outside Audit & have been appointed.
Method Supervisory Board members (Main Items)
・Oversight function of the Board Election of Outside Directors and Outside Audit & Supervisory Board Members
Evaluation process: Analysis of interviews and
・Deliberations within the Board
debriefing results to ensure Independent
Appointment Name Reason for Appointment
anonymity ・Support for outside officers Director/Auditor
More detailed sub-items are laid out under the main items
of the debriefing to allow for a well-rounded survey. To benefit from his management oversight and advice based on his extensive experience,
including as a director of Denso Corporation, and his expertise, including full-spectrum
Sojiro
〇 manufacturing expertise cultivated over decades at Denso and other companies/groups.
Tsuchiya
Mr. Tsuchiya has been designated as an independent director because he meets the requisite
FY2021 Board Effectiveness Evaluation Results
criteria and is deemed free of potential conflicts of interest with regular shareholders.
Issues Identified Measures

Enhancing discussions on medium- to long-term To benefit from his management oversight and advice based on his extensive experience and
plans and future visions Further increase opportunities for discussion and reporting at the Board of expertise in finance, particularly policy finance, project due diligence, and the environmental
Outside Kimio
Directors’ meetings on initiatives to improve corporate value and medium- 〇 and energy sectors. Mr. Yamaka has been designated as an independent director because he
directors Yamaka
to long-term management strategies in response to changes in the business meets the requisite criteria and is deemed free of potential conflicts of interest with regular
Discussions on measures to respond to environmental environment shareholders.
changes (CASE, electrification, etc.)

Explanations on the background of individual To benefit from her management oversight and advice based on her extensive experience
Discuss individual projects at an executive level after indicating the direction
investments and their relationship with medium- and high-level insight as a news anchor and researcher in the broad fields of social issues,
of capital investment to make projects easier to understand Mayumi
to long-term strategies 〇 environment, and energy in the management of Toyoda Gosei. Ms. Matsumoto has been
Matsumoto
designated as an independent director because she meets the requisite criteria and is deemed
Extend time given for officer liaison meetings for further exchange of ideas and free of potential conflicts of interest with regular shareholders.
Ensuring time for outside officer liaison meetings
discussions

To reflect in Toyoda Gosei’s audits her wealth of experience and keen insight gained from her
Continue selection of diversity- conscious candidates by arranging experience Chika
Ensuring further diversity of the Board career at Toyota Motor Corporation, where she served mainly in vehicle development and
and expertise required for the growth of the Company in a skills matrix Kako
materials development roles and was involved in management as a managing officer.

Outside
To reflect his extensive experience and deep insight as a corporate manager in the auditing
Issues Evaluated in FY2020 for Board Effectiveness and Status of Initiatives in FY2021 Audit &
Hideomi of Toyoda Gosei. Mr. Miyake has been designated as an independent auditor because he
Supervisory 〇
Main Feedback (Issues) in FY2020 Initiatives in FY2021 Miyake meets the requisite criteria and is deemed free of potential conflicts of interest with regular
Board
shareholders.
members
Insufficient discussion on medium- to long-term
Reported and discussed long-term business strategies beyond 2025 at Board
issues such as core competencies and carbon To reflect his extensive experience and deep insight as a lawyer in the auditing of Toyoda Gosei.
meetings and at outside officer liaison meetings Hitoshi
neutrality that will serve as future growth strategies 〇 Mr. Kuwayama has been designated as an independent auditor because he meets the requisite
Kuwayama
criteria and is deemed free of potential conflicts of interest with regular shareholders.
Considered to be an ongoing issue so that appropriate candidates continue to
Ensuring further diversity of the Board
be selected (ongoing in FY2022)

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Executive Compensation
Directors’ compensation consists of monthly fixed
compensation and performance-based compensation in
Directors’ aggregate annual cash compensation (monthly
compensation plus bonuses) is capped at ¥650 million Interview with Outside Directors
the form of cash bonuses (short-term incentive) and stock- (outside directors’ share of which is capped at ¥65 million).
based compensation (long-term incentive) based on the Directors’ aggregate annual restricted stock-based
idea that directors should be appropriately incentivized compensation is capped at ¥100 million (outside directors
to pursue sustained growth in Toyoda Gosei’s value. are not eligible for restricted stock-based compensation).
Directors’ compensation is split roughly 70:20:10 among All three compensation caps were approved at the annual
monthly compensation, cash bonuses, and stock-based Shareholders’ Meeting on June 12, 2020.
compensation, respectively. Outside directors and Audit & Supervisory Board
Monthly compensation is set at a fixed amount that members receive only fixed monthly compensation
reflects the recipient’s job responsibilities and experience because their role is to oversee and monitor management
as well as compensation levels at other companies. Cash from an independent vantage point.
bonuses are based primarily on fiscal yearly consolidated Individual directors’ compensation is set in accord with
operating profit. Secondary variables that factor into their the above policies following a fair and transparent review/
determination include the degree to which fiscal yearly reporting process by the majority-independent Executive
plans are attained, employees’ bonus levels, bonus levels Compensation Committee, established in 2019.
at other companies, medium- to long-term earnings, At Executive Compensation Committee meetings,
previously paid bonus amounts, and contributions to ESG outside directors have made suggestions about further
management. Stock-based compensation is intended as enlarging the incentive element of director compensation
an incentive to pursue sustained growth in Toyoda Gosei’s by, e.g., adjusting compensation to reflect the extent of
value. It is paid in the form of restricted stock to promote directors’ respective environmental contributions.
greater sharing of value with shareholders.

Director Compensation Scheme Total Compensation for Each Officer Class, Total by Each Type of
Compensation, and Number of Officers Receiving the Compensation
Through June 2020 From July 2020
Total Amount by Type of Compensation
compensation

Monthly compensation Total Executive (Millions of yen) Number

Capped at ¥60 million/month 80% Monthly Compensation of Subject
70% Officer Class Fixed Performance-based Non-cash
compensation
Fixed

（ ） (Millions of Compensation Compensation Compensation

¥720 million
annualized
Officers
yen) Monthly Cash Bonuses Stock-based (People)
Compensation Compensation
Directors (excluding
Cash bonuses 334 231 74 28 6
Performance-based compensation

outside directors)
Short-term

Cash
（ ）
Amount approved at
20% 20%
annual Shareholders’ bonuses Audit & Supervisory Board
Meetings
members (excluding 75 75 － － 3
outside members)
Restricted
stock-based
Long-term

10% Outside officers 70 70 － － 6

compensation
*Bonuses are the provision of allowance in the given fiscal year
*Effective from April 1, 2021 to March 31, 2022

Internal Audits, Audit & Supervisory Board Membersʼ Audits, and Accounting Audits
We have set up the Audit Division to handle internal directors and others, inspect financial statements and
audits. With the aims of achieving business objectives and other important documents, and conduct on-site audits
preventing misconduct and mistakes, internal audits are of offices and subsidiaries to audit the performance of
conducted across the overall business (including audits of duties by directors from the perspectives of ensuring
functional departments) based on an internal auditing plan legality and appropriateness, protecting assets and rights, Sojiro Tsuchiya Mayumi Matsumoto Kimio Yamaka
approved by management at the beginning of each term. and preventing loss. Moreover, a special department has
The results of internal audits are reported to Career summary Career summary Career summary
been established to assist the auditors’ audits.
management, and audited departments are given Toyoda Gosei director since June Toyoda Gosei director since June Toyoda Gosei director since June
The certified public accountants who performed the
recommendations for improvements based on the audit 2015 2019 2016
FY2021 accounting audit of Toyoda Gosei are Yasuhiro
results. The effectiveness of internal audits is increased by Formerly executive vice president, Visiting Associate Professor, Director of the Energy Strategy
Nakajima and Satoko Nakatani of PricewaterhouseCoopers
checking their improvement plans and results. Denso Corporation Komaba Organization for Institute Co., Ltd. (current)
Aarata LLC.
Each Audit & Supervisory Board member follows the Educational Excellence (KOMEX),
Audit & Supervisory Board members, internal auditing
auditing policy and audit plan established by the Audit The University of Tokyo (current)
department personnel, and accounting auditors regularly
& Supervisory Board when investigating the Company meet to confirm their respective auditing systems,
and subsidiaries. They attend the meetings of important auditing policy, auditing plans, implementation status,
deliberative bodies and committees including the and audit results. They cooperate in performing efficient
Board of Directors, Chief of Headquarters Meetings and and effective audits, contacting each other as needed to
Management Meetings, listen to reports on business from exchange ideas and share information.

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Corporate Governance Initiatives as well as perspectives that recognize external only the company in Japan, but also domestic and costs are strongly tied to domestic and international
stakeholders. overseas subsidiaries as well as suppliers, and mate- environmental and energy policy trends, beyond
For example, for large-scale investments such as rial manufacturers. This is something that should be the automotive industry. We must be flexible in
Tsuchiya － Overall, I think that that the company is new factory construction, I ask whether the choice of taken very seriously. responding and changing in accordance with the
making efforts honestly and in good faith. Boards and location and business site are optimal and whether situation as we anticipate it.
structures have been established, and I think policies the investment is a priority with consideration Matsumoto － Another aspect of the management The rest will be executed according to the general
and plans have been well discussed and fairly well of all business areas. When making a large-scale foundation is the challenge of ensuring diversity framework, but I look forward to bold and speedy
developed. investment, I always make sure that a carbon-neutral among managers. initiatives to earn money from this.
perspective is taken into account. With regard to For example, I think that we need to continue to
Yamaka － A new Sustainability Meeting has been investment decisions on renewable energy and energy coordinate our approach to the appointment and
established to provide a holistic view of not only ESG efficiency, I have given advice from viewpoints that promotion of women, mid-career hires, and foreign
initiatives, but also technical and audit perspectives. It differ from the conventional rules, such as flexible nationals.
has become possible for us to repeatedly confirm and consideration of the time it will take to recover the We should also enhance the quality and quantity
perceive intents in conjunction with the discussions investment. Recently I have proposed quantification of disclosure of climate change measures, based on
of individual boards, and make comments and of energy saving and decarbonization benefits. international frameworks such as the TCFD. The com-
recommendations that are more in line with the At the end of fiscal periods and the time of monthly pany's initiatives to address issues around sustain-
actual situation. operational reports, I ask questions and try to ability should also be disclosed more proactively than
understand the numbers and interpretations of the before. I believe that these are things we can do.
Matsumoto － We appreciate the positive attitude of factors in increases or decreases, mainly through an
the company in setting up the necessary meetings outside eye. Yamaka － Disclosure of non-financial information, in-
and identifying and addressing sustainability issues cluding governance, is becoming increasingly import-
on a company-wide basis. ant. I hope the company will continue its initiatives to
Improving Governance for the Future explain to the necessary stakeholders the background, Matsumoto － I have a high opinion of the company’s
Tsuchiya －I think the question now is how to implement its thinking, and what it is doing to face difficult chal- achievements so far and the fact that its environmen-
and execute the decisions that have been made. lenges, as well as to demonstrate the improvements tal initiatives are constantly being reviewed and im-
Tsuchiya － Toyoda Gosei is a company that contributes that have been made, in a readily understandable proved. Initiatives to save energy are also being steadi-
to society through manufacturing. The most important manner. ly implemented in company factories and offices.
Effectiveness of Outside Directors thing in manufacturing is not to betray the trust of Toyoda Gosei has been selected by the Ministry of
customers who use our products. Economy as a company that is actively innovating to
Today, we often hear about falsification or tamper- Environment Initiatives achieve carbon neutrality by 2050. Lively discussions on
Tsuchiya － I believe that progress has been made, ing with data related to quality among Japanese man- the development of new products and the introduction
especially in the areas of sustainability and carbon ufacturing companies. I believe that one of the major of services for decarbonization and carbon neutrality
neutrality, thanks to Mr. Yamaka and Ms. Matsumoto, themes in order to improve governance in the future Yamaka － The environment is clearly positioned as are also taking place at meetings as we move toward
who specialize in these areas. is to review and create structures, a culture, and sys- a key management issue. Relevant boards have been commercialization of these products and services.
tems to ensure that such incidents never occur, and to created and are being enhanced organizationally. In It is gratifying that we outside directors also receive
Matsumoto － Shortly after my appointment as an maintain these things continuously. addition, I believe that steady progress is being made detailed explanations of new products and services.
outside director in 2019, I advised the company to re- These initiatives must be inclusive, involving not in data maintenance and fact finding.
view the materiality it had established for ESG. At that It is commendable that a tentative general frame- Tsuchiya － There are some things that can be done
time, Toyoda Gosei had committed to all 17 of the work and schedule for carbon neutrality and interim for the environment just by making improvements to
SDGs, but after further discussion we decided to re- goals have been established, and that we now have what currently exists, but more often than not major
view these commitments and have now reestablished a guide for these efforts and predictability for imple- reforms are required. In a manufacturing company
our focus to concentrate on eight of the most relevant mentation and procedures. such as Toyoda Gosei, results cannot be achieved
SDGs for the company. Meanwhile, the schedule for energy conservation without the backing of technology and technical
investments, which are closely related to the compa- skills.
Tsuchiya － To work toward and achieve the company’s ny’s core business, is affected by decisions on when In the field of automotive parts using polymer ma-
goals, further advances in many technologies and to what extent renewable energy and hydrogen terials such as plastic and rubber, which are the com-
for product development and production will be will be used. Conversely, the appropriate introduc- pany’s specialty, there seem to be high expectations for
essential. I have also offered a variety of advice and tion of renewable energy and green certificates can us to lead the industry in the shift to environmentally
suggestions in this regard. provide flexibility in the process of developing ener- friendly products.
gy-saving technologies. General environmental initiatives are important,
Yamaka － I always emphasize the importance of Renewable energy and hydrogen are closely related but I believe that expectations for and the repu-
company-wide objectives and their significance, to public policy, and the associated technologies and tation of the company will depend on whether it

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is able to replace polymer automotive parts with example, while optimization and lighter weight for hurdles are how to make such products cost-effective,
Technology That Takes Full Advantage
environmentally friendly products and provide them the cooling system around the batteries in battery acceptable to customers, and profitable.
to the world ahead of competitors. packs have been achieved, I expect to see initiatives of Recycled Materials I feel that a strong company-wide project or some-
to further increase added value. BEVs with solar roofs thing, not just shouts of encouragement, is needed to
Matsumoto － I look forward to the introduction of a are expected to become more popular in the future, make these things happen.
business in which, in parallel with initiatives to reduce and the role of batteries and peripheral parts will Yamaka － Toyoda Gosei is a company that develops
carbon dioxide (CO2) emissions for the environment, increase further. and utilizes plastic and rubber materials and their raw Matsumoto － Toyoda Gosei produces plastic and rub-
a shift is made to building circular societies through In non-automotive areas, the market related to car- ingredients. It is expected to be a leader in solving the ber products, and I hope that all employees will have
things such as resource recycling, and then to a bon neutrality is the largest field of growth. Technolo- problem of decarbonization of plastics and rubber. a strong awareness of the importance of a circular
circular economy that creates markets and leads to gies in areas such as GaN, which contribute to energy As a first step, it is developing technologies to recycle economy and work toward it. For example, by devel-
new industries and employment. saving and weight reduction, LEDs, and e-Rubber may and use scrap materials generated in factories as oping technologies for the use of recycled materials
be considered synonymous with the Toyoda Gosei raw materials for other products, and we are seeing as a means of creating long-term value from material
name. The company also produces high-pressure hy- positive results. waste. I look forward to initiatives for a transforma-
Expectations for New Products for BEVs drogen tanks, a key component of FCEVs, for which it In the future, the company will be required to ex- tion to a resource-recycling business model that is
received the 2021 “Technology Development Award” pand from in-house recycling and utilization to exter- environmentally friendly and profitable.
from Toyota Motor Corporation. I look forward to ini- nal recycling and utilization. In addition to the “entry
Tsuchiya － A BEV, or battery electric vehicle, consists tiatives that encompass the entire hydrogen lifecycle point” of how to collect waste from other companies,
of more than just a battery, motor, and inverter. (supply chain), from generation to transportation, there is an “exit point” of overcoming various hurdles Support for Initiatives to Enhance Corporate Value
There is also the vehicle body, interior and exterior storage, and disposal, with high-pressure hydrogen that arise when such material is distributed and sold
(IE) products, safety system (SS) products, and tanks at the core of the process. An accessible corpo- as a standard product. This will require initiative in
weatherstrip (WS) products. I believe that the wave rate story that drives carbon neutrality can be built coordinating with policy authorities, and so a compa- Tsuchiya － The value of a manufacturing company is
of automobile electrification will also lead to changes with energy-saving and hydrogen-related technol- ny-wide initiative is expected. found in various places, but I believe that technical
in IE products and safety devices with demands for ogies. Since exit strategies to cultivate demand are The use of biomass and (synthetic) hydrogen ma- capability is the essence that enables the creation
higher quality and lighter weight. That differentiation important for new products, I would like to see the terials is inevitable, and developing technologies for of this value. Technical capability includes not only
will center on two factors: intelligent performance, company focus resources in this area. the use of recycled materials is becoming increasingly product development, but also production technolo-
such as safety functions and autonomous driving, and important as they will be the first in the framework of gy, quality technology, material technology, sales and
the quality, comfort, and convenience of the vehicle's Matsumoto － I am watching the trends in battery reg- carbon-neutral materials. I hope that recycling strate- service technology, and technology related to on-site
interior and exterior. ulations as Europe moves toward a circular economy, gies will be developed from this perspective. improvement activities, production management, and
Considering this, there should be tremendous and hope that the company is able to respond where maintenance. I hope to continue to contribute to the
opportunities for the IE products and safety devices its technology is involved for enactment of revisions Matsumoto － Material recycling, including material improvement of Toyoda Gosei’s manufacturing and
that Toyoda Gosei specializes in, depending how to those regulations. regeneration, resource recovery, and reclamation, technical capabilities.
it is done. This will depend largely on whether we in which waste is recycled as raw materials for the
can propose IE products of unprecedented quality same product, has the advantage of matching supply Yamaka － I will continue to provide information relat-
and airbags and other safety devices for the electric and demand since the grade remains the same and ed to energy and the environment both domestically
vehicle era ahead of other parts suppliers and even recycling is done for the same product with the same and internationally. As I mentioned with regard to en-
ahead of automakers. intended use. Toyoda Gosei's value to society will be vironmental initiatives, the key to building a strategy
further enhanced by expanding from cascading *1 to is to establish a general framework and timeline. It is
Matsumoto － In the IE area, the design of illuminated horizontal recycling *2 through the development of important to watch rapidly changing domestic and in-
emblems and other products that take advantage of single-material plastics and other measures. ternational situations and be able to respond flexibly
the BEV character, as well as the design of the vehicle *1 Recycling a used product into a different product or a product of lower to these changes. I see one of the major roles of an
interiors, are simple and help to ensure safety, and quality outside director to be to offer advice on this general
*2 Recycling of used products into resources that are then used again in the
may appeal to many drivers. framework and flexibility.
same product
In the SS area, we should be able to expect growing
needs for the development of safety devices suited Tsuchiya － I think this is an area where expectations Matsumoto － Since I have opportunities to make
to small BEVs (airbags that match the vehicle from both society and our customers are high. The external presentations on automobile and storage
characteristics) and collision safety systems combined important thing now is that this is not a time for battery policies, I keep myself open to trends in these
with seat belts. discussion but to bring this to a practical level as soon policies around the world. I would like to provide
as possible. feedback on information that I believe will be benefi-
Yamaka － In the FC area, involvement with the batter- However, changing materials is not an easy task. cial to the company.
ies and peripheral products that are symbols of BEVs The functionality and durability of the part must be
is probably necessary in the sense of demonstrating guaranteed, and production engineering and facilities
the company’s commitment to carbon neutrality. For must be developed for mass production. The biggest

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Risk Management Crisis Management Project in Anticipation of Large-Scale Earthquake Disasters

A crisis management system has been put in place for the also been established, and for alternative production in a
event of a massive disaster, such as the predicted Nan- production recovery system.
Basic Philosophy kai Trough earthquake or natural disasters due to climate Recovery training for design drawings and other data is also
We are working to prevent risks that could have grave Moreover, Risk Management and Response Guide- change. This system is based on the principles of human life carried out so that product development can be continued
consequences for management and to minimize damage lines have been established. These guidelines show first, community support, and early recovery. Specifically, even after disasters. In addition, workshops to strengthen
in adverse events. For these purposes, we identify risks the behaviors to adopt to prevent potential risks and to in addition to infrastructure and system measures based on crisis management not only in Toyoda Gosei companies
in each function and make decisions on how to respond respond to problems appropriately and quickly. Parts a crisis management project, resilience training has been but also at Group companies and suppliers are conducted
in Board of Directors, Internal Control Committee and of the BCP plan are discussed by the Board of Directors conducted more than 160 times for directors and members regularly. Assessments using anti-earthquake measure im-
general meetings throughout the company. with respect to COVID-19. With consideration of the of antidisaster departments since FY2013. These efforts are plementation status check sheets, clarification of weak points
An Internal Control Committee headed by the com- status of infection spread, actions taken to minimize the based on the company’s belief that improving the skills of with graphs, introduction of responses taken at Toyoda Gosei
pany president identifies key risks, determines mea- impact of COVID-19 include (1) preventing infection by response personnel is essential. Specific procedures for the and other companies, and cooperative preparation of business
sures to counter them, and checks on the progress in promoting work from home, regulating business trips recovery of affected buildings, facilities, and processes have continuation plans (BCP) are carried out.
executing these measures. In this way, these measures and visitors, and cancelling company internal events, (2) Disaster Response Initiatives to Date
are made more effective. implementing measures for the event that an infection Disaster outbreak － First response Recovery Classification Measures
In addition, initiatives to deal with key risks or unex- occurrs in an employee, (3) maintaining our production
Permanent ●
Earthquake resistance measures for buildings and facilities
pected business risks due to political instability or other network by monitoring issues, including at our suppli- ●
Establishment of a disaster prevention center to serve as an operations
Warning & Monitoring Team Emergency
external factors are discussed regularly by the Board of ers, and (4) introducing profit improvement measures. base for the entire company for anti-disaster department operations
Disaster occurs Task Force ●
Equipping all locations with a multi-channel access radio system (which
Directors, and continuous improvements are made. Emergency Facility and is used in Japan for various purposes, from daily work to emergency
earthquake alert equipment and disaster situations) and satellite phones
System Diagram of Internal Control measures ●
Installment of a crisis management server (earthquake-resistant
Internal Control Committee Chairperson: President Koyama structure) and emergency power generators
Committee First Response
Deliberation of policies and measures related to internal control
●
Operation of a disaster recovery system for restoration of damaged
Task Force Production
Life Support systems and data centers (special facilities equipped with and
Advance Team Restoration operating computers, data communications, and other devices)
Task Force
(investigative team) Task Force
Compliance Subgroup Risk Management Subgroup Internal Audit Subgroup ●
Introduction of site and building safety decisions
Reports, deliberates on corporate ethics and Identifies major risks, decides measures to Status reports on internal audits System ●
Earthquake bulletin and employee safety information system training
status of compliance with laws, etc. avoid or mitigate them, confirms measures ●
Maintenance of supply chain information
District Task Force Instructions
implementation status
●
Preparation of a business continuity plan (BCP)
Reports
Skills ●
Continuation of resilience training (disaster simulations)
Principal risk management activities
(Execution of annual plan)
• Share information on key risks (including Group Strengthening of Global Risk Response
• Specify key risks for the next fiscal year AN companies in Japan and abroad)
• Confirm plans to counter key risks PL
DO

• Reflect in company, departmental policies The status of risks, not just domestic but also frequently weekly BCP), and necessary actions are taken globally.
• Conduct activities based on plan
occurring global risks (tightening supply of parts and raw Standardization is also underway so that measurements can
N

• Review yearly activities (including Group materials, COVID-19-related operation shutdowns, Ukraine be taken by domestic and international locations on their
IO

• Final report on the progress status of activities

CH
companies in Japan and abroad)
T

EC
for the current fiscal year situation and more), is identified, the early situation both own initiative, strengthening the response to key risks seen
AC

K
• Share risk analysis
• Improve, review risk management policies,
activities, standards, etc.
• Evaluate, discuss activities with members of in Japan and internationally is grasped (issuance of a in the business environment of each company.
the Board of Directors

External disclosure of activities (securities report, corporate governance report, annual report, company website, etc.) Basic Policy for Cybersecurity Measures
To strengthen the control of confidential information, on information system security operating standards and a
annual checks of the compliance status of each division confidential information management manual. At domestic
Response to Key Risks
based on company confidentiality management regulations and international Group companies and major suppliers,
Operating foundation risks and business strategy risks and key risks are identified. are conducted together with onsite audits. Self-inspections specific measures are stratified and executed based on the
based on the business environment are assessed from Key risks are reflected in company policy as are also done at Group companies in Japan and overseas, as size of the impact on Toyoda Gosei and inspection results
the perspective of impact on operations (financial important action items, and initiatives are made to well as at major suppliers. for cyber risk measures at each company. Regular reports
impact, etc.) and possibility of occurrence (frequency), mitigate or prevent risks. Confidentiality officers are assigned in all departments, and discussions are conducted in all company boards, and
Examples of Key Risks and confidentiality education activities are conducted based cybersecurity measures are taken together globally.

Classification Main key risks Main Cybersecurity Measures

●
Large-scale disaster (earthquakes, storm and flood damage, etc.)　　 Classification Measures (domestic and international Group companies and suppliers respond in accordance with the size of the impact)
Size of risk COVID-19 (infection prevention, production system maintenance　　 Facility and
Printing restrictions with ID card authentication for multifunction printers and dedicated drawing printers
●
Prevent equipment measures
●

Large ●
Risk/opportunity and handling based on TCFD　　 Carbon neutrality handling
●
leakage due
Impact on Data encryption on all personal computers　　
DX handling　　 Impact of Russia/Ukraine situation　　 Cyberattacks/scam email
●

operations
● ● ●
to negligence System measures ●
Security measures when sending emails out of the company (mandatory cc to superior’s email address, encryption of attached files)
(financial impact, etc.)
●
Recall due to serious quality problem　　 Human injury, operation shutdown due to serious labor accident
●

Facility and ●
Increased surveillance cameras Restrictions on writing onto external storage media
●

× ●
Leakage of confidential information　　 Traffic accidents (causing serious damage/injury)　　
●
Prevent equipment measures ●
Installation of wire locks to prevent PC theft
Possibility of Medium ●
Occurrence of harassment leakage due ●
Confidentiality pledge Monitoring of system use records, access log records Stricter applications for taking items from premises　　
● ●

occurrence to malice System measures ●

Strengthened hacking prevention measures (Internet) Restricted access to file servers
●

(frequency) ●
Anti-trust law violations　　 Business operations of partner companies　　
●

Small ●
Prevention of unauthorized connection to terminals brought in from the outside
●
Interruption of business activities due to fire or explosion accidents
Educational activities ●
New employee education　 On-site inspections of each department　　
●

(morale measures) ●
Company-wide voluntary security control inspections using check sheets　 Training in responding to targeted email attacks
●

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Compliance people in sales and other business departments,

training for sports clubs and more. Educational
including a “Compliance Academy” that is regularly
published in the company newsletter, and Compliance
tools using various case materials are also prepared, KY Case Studies.

Basic Philosophy ■ Awareness surveys and Self-Inspections

Toyoda Gosei’s management philosophy states, “We sets forth shared values and behavioral standards for the To ascertain the degree to which compliance awareness nition and understanding of compliance educational
promote business operations with integrity through entire Toyoda Gosei Group. Group companies in Japan has penetrated the company and whether there are any tools” was 93.4%.
the establishment of a system founded on thorough and other countries then formulate and implement signs of problems, we conduct an annual compliance Domestic and overseas group companies conduct an-
compliance and corporate ethics.” Together with their own behavioral guidelines based on the Charter. sustainment questionnaire survey of all employees. The nual self-inspections of the status of their compliance
highly ethical and fair business practices, we strive Toyoda Gosei Co., Ltd. has also established the Toyoda results of the survey are reported to the Internal Control advocacy systems and major risks including antitrust
for thorough compliance in all areas based on this Gosei Guidelines for Business Ethics, which it expects Committee, and measures are implemented through- and competition laws, bribery, internal control, labor,
philosophy. every employee to follow, and has worked to familiarize out the company based on the results. Each workplace accounting, procurement, and quality. The results of
The Toyoda Gosei Group Charter for Business Ethics all employees with these guidelines. also engages in educational activities led by compliance the inspections are checked by each of the company’s
advocates. functional departments, and a feedback report is pre-
In the FY2022 survey, the “level of recognition and pared. Each Group company then makes improvements
Compliance System
understanding of the Toyoda Gosei Guidelines for based on the report and strives for thorough compli-
Toyoda Gosei has established the Internal Control carried out globally in coordination with Toyoda Gosei Business Ethics” was 95.6%, and the “level of recog- ance through the PDCA cycle.
Committee with the Company’s president serving as Co., Ltd.
chairman and all company officers as members. The ■ Initiatives for the Prevention of Antitrust and Competition Law Violations
Compliance Subgroup's activities include reporting on Toyoda Gosei Compliance Promotion System
The Toyoda Gosei Group Charter for Business Ethics working to ensure thorough compliance by employees
and discussing the status of compliance with business Corporate activities
states that we will conduct business activities with a through training and educational activities. Antitrust
ethics, laws, and regulations. The items reported spirit of “fair and free competition” (compliance with law compliance manuals based on the laws of each
and discussed in the Committee are shared with the antitrust and competition laws). We have formulated country are prepared for the regions where Group
Support for the Management Support for the
compliance advocates selected by each department in Domestic compliance system Philosophy compliance system Overseas the Codes of Conduct for Antitrust Law Compliance as companies are located, and initiatives are made to
affiliates affiliates
Companywide Compliance Advocates’ Meetings so that Toyoda Gosei Group guidelines to be followed by our employees, and are prevent anticompetitive acts globally.
they will be reflected in the activities of each workplace. Charter for Business Ethics
The committee works for thorough compliance with ■ Initiatives to Prevent Corruption
Toyoda Gosei Guidelines
a unified approach between management and the for Business Ethics
The Toyoda Gosei Group Charter for Business Ethics common guide for global activities, and are making
workplace.
All company executives Compliance advocates from each division clearly states that in our relationships with govern- efforts to prevent bribery, accounting fraud, and other
Regular compliance liaison conferences are also held Internal Control Company-wide Compliance
Committee Advocates’ Meeting ment agencies, political parties, and public officials, forms of corruption. Education is provided to employ-
with Group companies in Japan. Group companies
Ensuring we shall strictly refrain from any behavior that could ees through various types of level-specific training
in other countries have also established compliance compliance Compliance consultation office be mistaken for “back-scratching” or cronyism in the and training for Group companies doing business in
committees, appointed compliance advocates, or set up Legal affairs/ (internal/external)
compliance workshops Labor consultation office eyes of society in general, and shall strive to maintain regions where there is high risk to prevent corruption.
other compliance systems suited to the circumstances (internal)
highly transparent and sound relationships. We have
in their region and company. Compliance activities are
also formulated Global Anti-Bribery Guidelines as a

Specific Initiatives ■ Early Detection and Correction of Problems Through an Internal Reporting System
We have established compliance consultation offices that is used in common through external contacts.
■ Training and Educational Activities
both inside and outside the company for the purpose Overseas Group companies also have external or
Toyoda Gosei conducts various training and education new employees and others as an opportunity to spread
of early detection and correction of problems related internal consultation services. In FY2021, as a result
activities with the aim of raising and solidifying and deepen awareness of compliance at various career
to violations of compliance, internal rules, and laws of making the consultation offices known to all, 42
compliance awareness in every employee. Trainings stages.
and regulations in the course of business operations. reports and consultations were received from within
are conducted by level in the company and by risks Risk-specific training is conducted for specific risks.
Outside lawyers are in charge of the external offices the company and its domestic affiliates, mainly
corresponding to the work. The level-specific trainings These trainings include training for transferees prior
to deal with problems from an objective standpoint. concerning labor management, workplace problems,
target new officers, new managers, mid-level employees, to overseas assignments, anti-trust law training for
This system allows all employees of the company and harassment. These cases were promptly investi-
List of Workshops/Education at Toyoda Gosei and family members living with them to consult gated and appropriate corrective measures were taken
anonymously, and the company takes thorough to resolve the issues.
Category Workshop name/education Recipients Main content
measures to protect their privacy and ensure that they
Workshops/study sessions for officers Company officers Company law, fiduciary duty, etc. No. of Compliance Reports/Consultations (Japan)
will not be treated unfairly because of their report.
New manager training New managers Compliance, mental preparation as a manager, anti-trust laws, bribery, etc.
For each In addition to the internal consultation office of FY 2018 2019 2020 2021
Legal affairs/compliance training General employees (mid-level) Compliance, contracts, internal company regulations, laws (anti-trust laws, bribery, etc.)
level each Group company in Japan, inquiries are also
Fifth-year employee training General employees (skilled workers) Compliance in manufacturing settings No. of cases 40 48 69 42
Workshops New employee training New employees Compliance, laws
handled at an external compliance consultation office
Pre-overseas assignment training Management/General employees Compliance precautions in other countries (anti-trust laws, bribery, etc.)
For each Anti-trust law training Management/General employees (sales) Laws, internal company regulations
risk Product liability law training Management/General employees (technical) Laws, internal company regulations
Training for sports clubs Management/General employees (athletes, staff) Compliance overall
Compliance Academy (company newsletter) All employees Introduction of compliance cases
Education
Compliance KY Case Studies All employees Theme-based cases and interpretations (100)

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 Contents About Toyoda Gosei Value Creation Story Value Creation Strategy Foundation of Value Creation Data

Governance

Management Members （As of June 16, 2022）

Toru Koyama Tomonobu Yamada Hiroshi Yasuda Masaki Oka Mayumi Matsumoto Kenji Oiso Yamato Suzuki Chika Kako
President Executive Vice President Director, Corporate Officer Director, Corporate Officer Outside Director Audit & Supervisory Board Audit & Supervisory Board Outside Audit & Supervisory
Member Member Board Member
1982 Joined Toyoda Gosei 1981 Joined Toyoda Gosei 1982 Joined Toyoda Gosei 1985 Joined Toyota Motor Corp. 1987 Contract newscaster, TV Asahi
Corporation 1980 Joined Sumitomo Metal 1987 Joined Toyota Motor Corp. 1989 Joined Toyota Motor Corp.
2005 General Manager of 2007 General Manager of Sales Division 1, 2006 General Manager of Planning Division, 2012 Project Senior Manager, Finance & Industries, Ltd.
Development Division, Safety Toyoda Gosei Safety Systems Business Unit, Toyoda Gosei 1993 Contract newscaster, Japan 2012 Group Leader, Litigation Dept., 2015 Chief Engineer, Lexus International
Accounting Division, Toyota Motor Corp.
Systems Business Unit, Toyoda Broadcasting Corporation 2002 Deputy Manager, Finance & Legal Division, Toyota Motor ZL, Toyota Motor Corp.
2010 Director, Toyoda Gosei 2010 President, Toyoda Gosei Czech, s.r.o. 2014 General Manager of Related Business Accounting Div., Sumitomo Metal
Gosei Department, Toyota Motor Corp. 2003 Freelance announcer, Horipro Inc. Corp. (Project Senior Manager) 2018 Managing Officer, Toyota
2012 Corporate Officer, Toyoda Gosei 2012 Corporate Officer, Toyoda Gosei Ind., Ltd. Motor Corp.
2012 Corporate Officer, Toyoda Gosei 2015 Adviser, Toyoda Gosei 2008 Collaborative Researcher, 2015 Project General Manager,
President, Toyoda Gosei North 2014 Managing Officer, Toyoda Gosei 2016 Director, Managing Officer, Toyoda Gosei 2004 Joined Mitsubishi Sumitomo Corporate Planning Division, 2019 Field General Manager,
Corporate Officer, Toyoda Gosei Research Center for Advanced
America Corp. Chief of Sales Headquarters, Toyoda Gosei Chief of Production Headquarters, Toyoda Silicon, Co., Ltd. Toyoda Gosei Material Technology Field,
General Manager of Finance & Accounting Science and Technology, The
(current) Gosei Materials Advanced R&D and
2015 Managing Officer, Toyoda Gosei Division, Toyoda Gosei University of Tokyo 2006 General Manager, Finance & 2016 Deputy General Manager,
2016 Director, Managing Officer, Toyoda Gosei Chief of Plastic Parts Production Center, In charge of IT Planning Division, Toyoda Engineering Company, Toyota
Accounting Division, SUMCO Corp. Legal Division, Toyoda Gosei
2016 In charge of Corporate Planning President, Toyoda Gosei (Shanghai) Co., Ltd. Toyoda Gosei Gosei 2009 Project Researcher, same as Motor Corp.
Division, Toyoda Gosei President, Tianjin Toyoda Gosei Co., Ltd. above 2011 Corporate Officer, SUMCO Corp. General Manager, Legal
Director, Managing Officer, 2017 Director, Senior Managing Officer, 2016 Deputy Chief of Finance & Accounting Division, Toyoda Gosei 2020 Senior General Manager,
Toyoda Gosei 2017 Adviser to Quality Assurance Headquarters, Headquarters, Toyoda Gosei 2011 Director, principal researcher, 2014 Functional Officer, Yokogawa Material Technology
Toyoda Gosei Toyoda Gosei International Environment and 2021 Full-Time Audit & Supervisory
Adviser to General Industry Products In charge of Audit Division, Toyoda Gosei Sumikin Bridge Corp. Field, Advanced R&D and
Chief of Purchasing Economy Institute (current) Board Member, Toyoda Gosei
Headquarters, Toyoda Gosei Division, Toyoda Gosei 2018 Director, Senior Managing Officer, Toyoda 2017 Chief of Finance & Accounting Headquarters, 2016 Joined Miraial Co., Ltd. (current) Engineering Company, Toyota
Gosei Toyoda Gosei 2013 Visiting Associate Professor, General Manager Motor Corp. (current)
2018 Director, Senior Managing 2019 Director, Corporate Officer, Toyoda Gosei
Special Division of Environmental Finance & Accounting Division, Audit & Supervisory Board
Officer, Toyoda Gosei Chief of General Industry Products 2019 Director, Corporate Officer, Toyoda Gosei 2018 Director, Managing Officer, Toyoda Gosei
and Energy Science, Komaba Miraial Co., Ltd. Member, Toyoda Gosei
Division, Toyoda Gosei (current) Chief of IT Headquarters, Toyoda Gosei
2019 Executive Vice President, Organization for Educational (current)
2020 Executive Vice President, Toyoda Gosei Chief of Safety & Health Promotion Division, 2017 Project General Manager, Finance &
Toyoda Gosei 2019 Director, Corporate Officer, Toyoda Gosei Excellence (KOMEX), The
(current) Environment Division, Toyoda Gosei (current) Accounting Division, Toyoda Gosei
Chief of Corporate Planning (current) University of Tokyo (current)
Division, Toyoda Gosei Chief of Audit Division, Toyoda Gosei Chief of Audit Division, Toyoda Gosei
2017 Director, Japan Council for 2019 Managing Director, Toyoda Gosei
(current) 2021 Chief of Corporate Strategy Headquarters, 2020 Chief of Corporate Planning Division, Toyoda Corporate Pension Fund
2020 President, Toyoda Gosei Adviser to General Industry Products Toyoda Gosei (current) Renewable Energy (current)
Gosei
(current) Business Headquarters, Toyoda Gosei Chief of Carbon Neutrality and Environment 2019 Director, Toyoda Gosei (current) 2020 Full-Time Audit & Supervisory
2021 Chief of Corporate Strategy Headquarters, Board Member, Toyoda Gosei
2021 Adviser to Life Solution Business Promotion Division, Toyoda Gosei
Toyoda Gosei (current)
Headquarters, Toyoda Gosei Adviser to Automotive Business
Deputy Chief of Corporate Strategy
Headquarters, Toyoda Gosei Headquarters, Toyoda Gosei
2022 Chief of Taiwan Regional Headquarters,
Chief of Purchasing Headquarters, Toyoda
Toyoda Gosei (current)
Gosei (current)

Corporate Officers

Ryo Onishi

Yoshiyuki Fujita

Hiromasa Zaitsu
Takashi Ishikawa Naoki Miyazaki Sojiro Tsuchiya Kimio Yamaka Hideomi Miyake Hitoshi Kuwayama
Director, Corporate Officer Director Outside Director Outside Director Outside Audit & Supervisory Outside Audit & Supervisory
Yutaka Ogasawara
Board Member Board Member
1985 Joined Toyota Motor Corp. 1980 Joined Toyota Motor
Company
1975 Joined Nippondenso Co., Ltd. 1980 Joined Japan Development
Bank 1968 Joined Toyoda IronWorks Co., Ltd. 1990 Registered as attorney
Tadashi Yamamoto
2008 General Manager of Upper 2002 Director, Denso Corp.
1993 Director, Toyoda IronWorks Co., Ltd. Joined Midosuji LPC
Body Engineering Division 2, 2008 Managing Officer, Toyota 2004 Managing Officer, Denso Corp. 2007 Deputy Director-General,
Toyota Motor Corp. Motor Corp. Development Bank of Japan 1999 Managing Director, Toyoda 1997 Partner at Misosuji LPC Mitsuhiro Nawashiro
2007 Senior Managing Director,
2013 Adviser, Toyoda Gosei 2013 Senior Managing Officer, 2009 Director of the Energy IronWorks Co., Ltd. 2011 Outside Company Auditor,
Denso Corp.
Maxvalu Nishinihon Co., Ltd.
Corporate Officer, Toyoda Gosei Toyota Motor Corp.
2011 Executive Vice President,
Strategy Institute Co., Ltd.
(current)
2003 Senior Managing Director, Makoto Hasegawa
2016 Managing Officer, Toyoda Gosei 2014 Adviser, Toyoda Gosei Toyoda IronWorks Co., Ltd. 2012 Vice Chairman, Osaka Bar
Denso Corp.
Executive Vice President, 2012 General Advisor on Energy 2005 President, Toyoda IronWorks Association
2019 Corporate Officer, Toyoda Gosei Toyoda Gosei 2013 Advising Executive Engineer,
Denso Corp.
Policy for Yamagata Pref. Co., Ltd. 2013 Part-time Lecturer, Kyoto Katsumi Saito
2020 Director, Corporate Officer, 2015 President, Toyoda Gosei (current) University Law School
2011 Chairman, Toyoda IronWorks
Toyoda Gosei (current) 2015 Director, Toyoda Gosei 2014 Project Professor, Graduate
Chief of Research and Development
2020 Chairman, Toyoda Gosei (current) School of Economics, Kyoto
Co., Ltd. 2015 Outside Director, Maxvalu
Nishinihon Co., Ltd.
Kenji Hayashi
Headquarters, Toyoda Gosei 2021 Executive Vice President Adviser, Denso Corp. University (current) 2015 Audit & Supervisory Board
Toyoda Gosei (current) Member, Toyoda Gosei (current) 2020 Senior Partner, Midosuji LPC
2022 Chief of Carbon Neutrality 2016 Director, Toyoda Gosei (current)
Director, Toyota Boshoku 2016 Senior Adviser, Toyoda Iron
and Environment Promotion (current) Outside Director, Zett Corporation
Corp. (current) Works Co., Ltd. (current)
Division, Toyoda Gosei (current) (Audit and Supervisory Committee
Director, Toyoda Gosei
Technical Liaison Officer of Member) (current)
(current)
Research and Development
Outside Audit & Supervisory 2022 Audit & Supervisory Board Member,
Headquarters, Toyoda Gosei
Board Member, Hino Motors, Toyoda Gosei (current)
(current)
Ltd. (current)

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 Contents About Toyoda Gosei Value Creation Story Value Creation Strategy Foundation of Value Creation Data

Data

Financial and Non-Financial Highlights

Financial Data Non-F inancial Data
The Toyoda Gosei Group adopted the IFRS effective from the first quarter of FY2018, ended March 31, 2019.
Additionally, FY2017 data was converted to the IFRS basis.
Environment

Revenue Operating Profit / Return on Equity (ROE) CO2 Emissions per Sales Unit
（Scope 1, 2） Waste Volume [Toyoda Gosei Co., Ltd.] Water Intake per Sales Unit
Profit Attributable to Owners of Parent [Toyoda Gosei Co., Ltd.]
（Billions of yen） （Tons/¥100 million）
840.7 812.9 830.2 （Billions of yen） Operating profit （％） （10,000 tons-CO2） Global Toyoda Gosei Co., Ltd （1,000 tons）
807.9 Profit attributable to owners of parent
800 50 9.6 60 57.4 15 1.0
721.4 10 53.2 Compared with
47.1 FY2015 Compared with
40 35.1 36.5 36.4 35.2 ▲25% 11.3 Compared with
600 34.1 8 0.67 FY2019
6.7 Compared with 0.65 FY2019
6.4 40 Compared with 10 ▲6%
FY2012 Compared with ▲11%
30 6 FY2013 ▲40% FY2012
23.3 23.3 ▲50%
400 21.3 5.7 ▲50% 0.5
20 17.8 4 5.5
20 15.9 5
11.2 14.9
200 3.2 10.8
10 2

0 0 0 0 0 0
2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 2013 2015 2021 2025 Target 2030 Target 2012 2021 2025 Target 2030 Target 2019 2021 2025 Target 2030 Target
（FY） （FY） （FY） （Base year）
（Base year） （FY） （Base year） （FY） （Base year） （FY）

Social

Operating Profit Ratio Capital Investment / R&D Expenses Basic Earnings per Share Average Years of Service for Male and Number of Parental Leaves Taken Number of Female Managers
Female Employees [Toyoda Gosei Co., Ltd.] [Toyoda Gosei Co., Ltd.] *1 [Toyoda Gosei Co., Ltd.]

（％） （Billions of yen） Capital investment （Yen） （Years） Female Male (People) Female Male （People）
R&D expenses 19.5 30
10 80 300 20 18.6 18.5 80 30
18.3 18.3
271.99 25
8 14.8 15.5 15.5 15.4 15.5 62
60 53.4 15 60
49.7 200 180.09 180.39 20 19
46.8 46.5
6 5.1 41.8 165.04 41 16
4.4 4.3 40 10 40 37
4.1 31.3 31.0 33.5
4 27.6 30.0 30 28 18
26 10
100 86.74 6 10
2.2 9 8
20 5 20
2 24 23
19 25
18
0 0 0 0 0 0
2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021
（FY） （FY） （FY） （FY） （FY） （FY）
*1 Number of employees who began parental
leave in fiscal year concerned

Governance

Annual Dividends per Share Cash and Cash Equivalents / Ratio of Equity Attributable to Owners of Employment Rate of People with Labor Accident Rate (Rate of Lost-Worktime Injuries) Number of People Who Have Taken
Interest-Bearing Debt Parent to Total Assets Disabilities [Toyoda Gosei Co., Ltd.] [Toyoda Gosei Co., Ltd.] Compliance Training [Toyoda Gosei Co., Ltd.]
（Yen） （Billions of yen） Cash and cash equivalents （％） （%） Rate of lost-worktime ＝ No. of casualties in labor accidents (people) × 1 million
（%） （People） New employee training New manager training
injuries Total labor hours
60.0 60.0 60.0 60.0 Interest-bearing debt
60 56.0 200 60 3 1.5 600 Training for mid-level employees
51.2 50.0 50.5 All manufacturing industries*2 1.31 518
48.7 49.9 1.21
173.6 1.20 1.20
152.2 2.47
150 148.0 2.38 2.38 2.39 1.02
134.0 2.31
40 125.4 127.9 40 2.3% 1.0 400
109.1 336 323
108.2 107.3 2.2% 317 317
100 97.9 Transport equipment manufacturing industry*2
2
0.54 0.50 216
0.43 0.48 0.45 175 196
20 20 0.5 200 156 153
50
Statutory employment rate Toyoda Gosei Co., Ltd. 0.208 82 89
0.118 73
0.064 0.062 0.066 109 107
0 0 0 1 0 0
2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021
（FY） （FY） （FY） （FY） （FY） （FY）
*2 Results of the Ministry of Health, Labour and
Welfare’s survey on labor accident trends
(Survey period: January to December)

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 Contents About Toyoda Gosei Value Creation Story Value Creation Strategy Foundation of Value Creation Data

Consolidated 10-Year Financial Summary

（Millions of yen; rounded down to the nearest million yen）

FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2017 FY2018 FY2019 FY2020 FY2021
J-GAAP （Fiscal year ended （Fiscal year ended （Fiscal year ended （Fiscal year ended （Fiscal year ended （Fiscal year ended IFRS （Fiscal year ended （Fiscal year ended （Fiscal year ended （Fiscal year ended （Fiscal year ended
March 31, 2013） March 31, 2014） March 31, 2015） March 31, 2016） March 31, 2017） March 31, 2018） March 31, 2018） March 31, 2019） March 31, 2020） March 31, 2021） March 31, 2022）

Operating Net sales 599,615 689,477 727,846 781,886 755,601 806,938 Revenue 807,958 840,714 812,937 721,498 830,243
results
Operating profit 36,706 43,798 41,603 42,824 40,675 41,136 Operating profit 35,179 36,525 17,888 36,479 34,172

Ordinary profit 36,777 45,847 43,792 41,490 39,007 43,200

Profit before income taxes 36,571 46,101 39,851 36,710 31,288 35,775 Profit before tax 35,507 37,356 16,106 37,301 37,696

Profit attributable to owners of parent 21,429 26,214 21,155 20,255 16,233 21,175 Profit attributable to owners of parent 21,361 23,309 11,226 35,205 23,352

Financial 　Cash and deposits 79,073 92,364 85,283 78,388 97,553 104,309 　Cash and cash equivalents 97,991 107,311 127,930 134,003 109,145
position
Current assets 244,798 279,281 291,246 281,212 305,273 328,524 Current assets 357,666 382,106 359,565 380,578 425,165

　Property, plant and equipment 196,163 210,214 250,557 241,408 245,666 259,537 　Property, plant and equipment 241,581 257,728 273,479 290,246 316,901

Non-current assets 244,846 262,596 316,926 306,160 315,425 333,819 Non-current assets 321,819 326,023 349,619 394,577 434,137

Total assets 489,644 541,877 608,172 587,373 620,699 662,388 Total assets 679,485 708,129 709,185 775,155 859,302

　Short-term loans payable* 35,978 39,069 41,848 21,073 31,762 43,722 　Borrowings 43,722 32,396 44,657 42,835 43,924

Current liabilities 157,748 168,136 180,795 162,592 170,574 189,075 Current liabilities 195,392 194,309 180,653 185,535 209,396

　Bonds payable - - - - - 10,000

　Bonds and borrowings 64,511 93,089 103,399 109,379 129,772
　Long-term loans payable 23,329 31,138 42,929 44,691 57,261 54,458

Non-current liabilities 59,751 73,462 88,902 96,937 110,663 119,403 Non-current liabilities 118,435 133,674 158,256 169,164 187,111

Total liabilities 217,500 241,598 269,697 259,530 281,237 308,479 Total liabilities 313,828 327,983 338,909 354,700 396,508

Shareholders’ equity 255,201 275,840 289,321 301,756 311,127 324,890 Equity attributable to owners of parent
(Reference) Interest-bearing debt 59,307 70,207 84,777 65,765 89,023 108,181 (Reference) Interest-bearing debt 108,233 125,486 148,057 152,215 173,696

Cash flows Cash flows from operating activities 52,451 55,448 51,283 77,765 60,401 60,848 Cash flows from operating activities 44,004 57,463 65,247 67,247 27,658

Cash flows from investing activities （40,989） （45,680） （62,432） （56,261） （82,131） （39,201） Cash flows from investing activities （21,832） （55,491） （54,174） （49,949） （59,427）

Cash flows from financing activities （6,128） （732） （238） （24,736） 14,794 6,541 Cash flows from financing activities 5,966 7,749 12,525 （13,065） 2,206

Key performance Profit attributable to owners of parent

Return on sales (%) 3.6 3.8 2.9 2.6 2.1 2.6 2.6 2.8 1.4 4.9 2.8
indicators ratio (%)
Total asset turnover (times) 1.27 1.34 1.27 1.31 1.25 1.26 Total asset turnover (times) 1.23 1.21 1.15 0.97 1.02
Ratio of equity attributable to owners of
Equity ratio (%) 51.7 51.6 51.6 51.7 50.7 49.6 51.2 50.0 48.7 50.5 49.9
parent to total assets (%)
Return on equity (ROE) (%) 9.0 9.8 7.1 6.6 5.2 6.6 Return on equity (ROE) (%) 6.4 6.7 3.2 9.6 5.7

Capital investment 39,097 43,085 64,733 54,498 55,218 64,816 Capital investment 53,411 46,891 41,835 46,589 49,749

Depreciation and amortization 38,633 38,743 39,353 44,462 40,902 44,037 Depreciation and amortization 32,545 32,927 35,323 35,527 38,499

R&D expenses 27,279 29,170 29,579 28,409 27,164 27,864 R&D expenses 27,684 30,025 31,374 31,000 33,543
Number of employees at year-end Number of employees at year-end
30,190 31,672 34,754 35,903 36,679 38,234 38,234 39,429 39,403 38,823 39,511
(consolidated) (consolidated)

Per share Annual dividends 44.00 56.00 56.00 56.00 53.00 56.00 Annual dividends 56.00 60.00 60.00 60.00 60.00
information
(yen) Basic earnings 165.63 202.54 163.44 156.49 125.42 163.60 Basic earnings per share (yen) 165.04 180.09 86.74 271.99 180.39

Dividend payout ratio (%) 26.57 27.65 34.26 35.79 42.26 34.23 Dividend payout ratio (%) 33.93 33.32 69.17 22.06 33.26

* Including current portion of long-term loans payable and redemption of bonds within one year

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 Contents About Toyoda Gosei Value Creation Story Value Creation Strategy Foundation of Value Creation Data

Financial Review
Financial Position and Operating Results Financial Condition
The global situation showed signs of recovery from the product to golf schools run by Mizuno Corporation. We are from lower production caused by COVID-19 pandemic in
Analysis of Financial Position
previous fiscal year, when the economy plunged into also developing next-generation power semiconductors the previous fiscal year.
recession due to COVID-19 pandemic. However, the pace using gallium nitride (GaN), a technology that contributes Notwithstanding the effects of increased sales, 1. Assets, liabilities, and equity
of recovery slowed in the second half of FY2021, mainly to the realization of an energy-saving society. We have operating profit was ¥34.1 billion (down 6.3% year on Total assets at fiscal year-end increased by ¥84.1 billion
due to the resurgence of COVID-19, notably Omicron succeeded in fabricating a larger, high-quality GaN year) and profit attributable to owners of parent was year on year to ¥859.3 billion, driven mainly by an increase
variant, and the surge in crude oil prices. substrate (GaN seed crystal) of over 6 inches in diameter, ¥23.3 billion (down 33.7%) due to factors such as soaring in trade and other receivables. Liabilities totaled ¥396.5
For most of the first half of the fiscal year the Japanese the largest of its kind in the world. As society moves toward raw material prices and the cost of not being able to deal billion, a ¥41.8 billion year-on-year increase due mainly to
economy was sluggish against the backdrop of the state of carbon neutrality, the practical application and widespread flexibly to fluctuations in automobile production volume. growth in trade and other payables.
emergency and measures to prevent spread of COVID-19. A use of next-generation power semiconductors is promising (Millions of yen) Equity totaled ¥462.7 billion, a ¥42.3 billion year-
recovery was expected in the second half of the fiscal year as a means of reducing power loss when controlling large on-year increase mainly attributable to growth in other
Consolidated results FY2021 FY2020
with the incoming Kishida administration, which sought volumes of power for renewable energy and EVs. We components of equity.
for a virtuous cycle of growth and distribution, as well as a believe the larger diameter GaN substrates will greatly Revenue 830,243 721,498 2. Cash flows
higher rate of vaccination for the population. This recovery, contribute to the issue of improving productivity (cost Operating profit 34,172 36,479 Cash and cash equivalents at the end of the fiscal year
however, stalled with the spike in COVID-19 cases, reductions). Profit attributable to owners of parent 23,352 35,205 under review fell by ¥24.8 billion, from ¥134.0 billion at
especially with the Omicron variant, and with sluggish In the automotive sector, we have brought new devices the end of the previous fiscal year to ¥109.1 billion.
growth in consumer spending owing to higher prices. to market with the aim of realizing a safe and secure Cash flows and related factors during the fiscal year
The automobile industry was expected to recover at mobility society. In response to the more rigorous vehicle under review were as follows.
the beginning of the year, but global production was slow collision safety assessments that are expected in North Revenue by Segment Cash flows from operating activities
due to the shortage of semiconductors and a stagnant America and other countries, we have developed a driver- Net cash flows provided by operating activities was ¥27.6
Japan
supply of parts due to the comeback in COVID-19 cases. side airbag with a new structure that better protects the billion, a decrease of ¥39.5 billion from the previous fiscal
Despite a drop in production due to a shortage of
The continued shortage of resin materials and disruption driver's head and chest in the event of an angled collision. year. This was mainly due to an increase in expenditures of
semiconductors for automobiles, revenue was ¥399.5
in the distribution network also had a significant impact This state-of-the-art airbag has been fitted in the new ¥22.5 billion in trade and other receivables and ¥6.1 billion
billion (up 11.6% year on year) thanks to greater sales in
on costs. Meanwhile, automakers in Japan and overseas Honda Civic. A pedestrian protection airbag we developed in provisions.
LED-related business.
announced their plans, notably for the launch of more that protects pedestrians when hit by a car has also been Cash flows from investing activities
Segment profit was ¥15.8 billion (up 31.2% year on
EVs, thus marking the year when the automobile market fitted to SUBARU’s latest Legacy Outback models. What Net cash flows used in investing activities was ¥59.4 billion,
year) due to a temporary decrease in retirement benefit
begun a full-scale shift toward EVs, especially when Toyota is more, our LED illuminated emblems meet the ever- an increase of ¥9.4 billion from outflows recorded in the
costs following changes to the retirement system.
Motor Corporation announced its plan to step up global changing design needs of our customers. This product, previous fiscal year. This was mainly due to a ¥2.3 billion
Americas
production of BEVs to 3.5 million units by 2030. used in Nissan’s ARIYA crossover EV, lights up the car’s decrease in proceeds from withdrawal of time deposits,
Revenue was ¥240.7 billion (up 18.3% year on year) thanks to
Under these circumstances, although the Toyoda Gosei logo, adding a new design dimension for BEVs. in addition to an increase in expenditures, ¥4.0 billion
a favorable exchange rate and recovery from production cuts
Group's revenue increased year on year, profits fell owing The second pillar of our Group activities is “Strategies for for payments into time deposits, and ¥2.1 billion for the
caused by COVID-19 pandemic in the previous fiscal year.
to a slowdown in the number of vehicles rolling off the growing markets/fields”. Here, we have been taking steps to purchase of property, plant and equipment, and intangible
Notwithstanding the effects of increased sales, segment
assembly line, as well as due to the state of the materials strengthen safety system operations, as one of our mainstay assets.
profit was ¥4.1 billion (down 69.7% year on year) due to
market and soaring logistics costs. Changes in the external fields. To this end, we entered into a capital and business Cash flows from financing activities
factors such as soaring raw material prices and the cost
business environment have also had a significant impact, alliance with Ashimori Industry Co., Ltd. to further improve Net cash flows provided by financing activities was ¥2.2
arising from our inability to deal flexibly to fluctuations in
amplifying our cost burden owing to our inability to respond vehicle safety performance. Our respective companies will billion, an increase of ¥15.2 billion from the previous
automobile production volume, as well as a rebound from
flexibly to fluctuations in automobile production volume. work together, leveraging each other's business assets and fiscal year. This was mainly due, in addition to an increase
government subsidies in the previous fiscal year.
Despite this difficult situation, we will not only continue expertise going forward to strengthen our development of ¥16.4 billion in repayments of long-term borrowings,
Asia
to streamline operations and curb expenses, but will also capabilities and product competitiveness. In this way, we will to a net inflow of ¥38.7 billion in proceeds from and
Revenue was ¥226.0 billion (up 18.7% year on year)
carry out our growth strategy revolving around three key work on the development of airbag and seatbelt systems, as expenditures for short-term borrowings, despite a decrease
buoyed by a pick up in production in Thailand, India,
areas toward the realization of our medium- to long-term well as next-generation safety systems for electric and self- of ¥8 billion in proceeds from long-term borrowings.
Indonesia, and other countries.
2025 Business Plan. driving vehicles. Despite the impact from a drop in sales in China and (Millions of yen)
The first pillar of our business activities is “Venture into Our third pillar of activity will focus on “Innovative soaring raw material prices throughout Asia, segment Cash flows FY2021 FY2020
innovation, new mobility.” In other words, we are pursuing manufacturing at production sites.” Here, we aim to create profit was ¥15.2 billion (up 5.6% year on year), boosted by
expeditious commercialization of innovative technologies smart factories to support sustainable growth for the Cash flows from operating activities 27,658 67,247
increased sales in other regions.
in new business domains, and the development of new Group. The Toyoda Gosei Group concept of an advanced Europe & Africa Cash flows from investing activities （59,427） （49,949）
technologies and products adapted to transformations in factory aims to be a clean production site that emits no CO2 Revenue was ¥26.9 billion (up 2.8% year on year). Cash flows from financing activities 2,206 （13,065）
automobiles. or waste, where anyone can work actively with no accidents Segment loss was ¥0.9 billion (compared with a loss
In new business domains, we have expanded our and no claims of damage or injury. As more kinds of of ¥3.9 billion in the previous fiscal year) due in part to a
product lineup with the launch of the UV-C Personal vehicles come off the production line, we are working not reaction to a restructuring provision for the U.K. subsidiary
Space Disinfector and Deodorizer. This product purifies only to increase productivity through the introduction of recorded in FY2020.
and deodorizes the air using deep ultraviolet (UV-C) LEDs collaborative robots and IoT systems that centrally manage
(Millions of yen)
that are effective in removing viruses and bacteria. We also production processes, but also on environmentally friendly
released the UV-C High-Speed Surface Disinfector that is manufacturing to enable employees to work securely and Revenue by segment FY2021 FY2020
capable of killing bacteria and viruses in a very short space safely. This initiative will be rolled out in new plants and Japan 399,575 358,082
of time. then gradually incorporated into existing factories.
Americas 240,730 203,421
In terms of our next-generation dielectric rubber,
e-Rubber, which moves using electricity, we developed Despite a drop in production due to a shortage of Asia 226,037 190,479
FeelSole, a smart insole with sensors that can be fitted into semiconductors and other factors, revenue for FY2021 Europe & Africa 26,992 26,261
a person’s shoe to give pressure data on the sole of the increased year on year to ¥830.2 billion (up 15.1%) thanks * Revenue by segment includes amounts for internal transactions within the Toyoda
foot during exercise. We started shipping samples of this to greater sales in LED-related business and a recovery Gosei Group, and so does not match the total value for consolidated sales.

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 Contents About Toyoda Gosei Value Creation Story Value Creation Strategy Foundation of Value Creation Data

Consolidated Financial Statements

（Millions of yen） （Millions of yen）

FY2020 FY2021 FY2020 FY2021

Consolidated statement of financial position Consolidated statement of profit or loss
（as of March 31, 2021） （as of March 31, 2022）
（　　　
March 31, 　　）
April 1, 2020 to
2021 （　　　
March 31,　　）
April 1, 2021 to
2022

Assets Revenue 721,498 830,243

　　Current assets Cost of sales （622,832） （733,686）
　　　Cash and cash equivalents 134,003 109,145 Gross profit 98,665 96,557
　　　Trade and other receivables 149,249 182,595 Selling, general and administrative expenses （56,423） （64,050）
　　　Other financial assets 9,617 17,421 Other income 3,225 5,239
　　　Inventories 72,888 94,862 Other expenses （8,987） （3,574）
　　　Other current assets 14,819 21,140 Operating profit 36,479 34,172
　　　Total current assets 380,578 425,165 Finance income 3,035 5,912
　　Non-current assets Finance costs （3,116） （2,651）
　　　Property, plant and equipment 290,246 316,901 Share of profit of investments accounted for using equity method 903 264
　　　Intangible assets 4,571 5,154 Profit before tax 37,301 37,696
　　　Other financial assets 41,983 50,650 Income tax expense 773 （10,962）
　　　Investments accounted for using equity method 14,844 15,642 Profit 38,075 26,734
　　　Retirement benefit asset 6,254 5,741
　　　Deferred tax assets 21,349 18,706 Profit attributable to 　
Owners of parent 35,205 23,352
　　　Other non-current assets 15,326 21,340
Non-controlling interests 2,870 3,382
　　　Total non-current assets 394,577 434,137
Profit 38,075 26,734
　　　Total assets 775,155 859,302

Earnings per share

Liabilities and equity 　Basic earnings per share (yen) 271.99 180.39
　Liabilities 　Diluted earnings per share (yen) 271.97 180.38
　　Current liabilities
　　　Trade and other payables 126,784 147,942
　　　Borrowings 42,835 43,924 （Millions of yen）
　　　Other financial liabilities 4,076 4,158 FY2020 FY2021
Consolidated statement of comprehensive income
　　　Income taxes payable
　　　Provisions
3,439
2,638
3,730
2,648
（　　　
March 31,　　）
April 1, 2020 to
2021 （　　　
March 31,　　）
April 1, 2021 to
2022

　　　Other current liabilities 5,760 6,993 Profit 38,075 26,734

　　　Total current liabilities 185,535 209,396
　　Non-current liabilities Other comprehensive income
　　　Bonds and borrowings 109,379 129,772 　Items that will not be reclassified to profit or loss
　　　Other financial liabilities 13,510 13,645 　Equity instruments measured at fair value
　　　Retirement benefit liability 34,745 32,420 through other comprehensive income 6,252 4,926
　　　Provisions 4,578 3,233 　Remeasurements of defined benefit plans 3,757 221
　　　Deferred tax liabilities 5,015 5,304 　Share of other comprehensive income of investments
　　　Other non-current liabilities 1,935 2,734 accounted for using equity method 112 37
　　　Total non-current liabilities 169,164 187,111 　Total of items that will not be reclassified to profit or loss 10,121 5,185
　　Total liabilities 354,700 396,508
　Items that may be reclassified to profit or loss
　Equity 　Exchange differences on translation of foreign operations 9,702 20,533
　　　Share capital 28,046 28,069 　 Share of other comprehensive income of investments
　　　Capital surplus 25,626 24,465 accounted for using equity method 74 841
　　　Treasury shares （1,232） （1,233） 　Total of items that may be reclassified to profit or loss 9,776 21,375
　　　Other components of equity 17,759 42,433 　Other comprehensive income, net of tax 19,898 26,560
　　　Retained earnings 320,883 335,069 　Comprehensive income 57,974 53,294
　　　Total equity attributable to owners of parent 391,083 428,804
　　　Non-controlling interests 29,372 33,989 　Comprehensive income attributable to
　　Total equity 420,455 462,794 　Owners of parent 53,857 48,251
　Total liabilities and equity 775,155 859,302 　Non-controlling interests 4,116 5,043
　Comprehensive income 57,974 53,294

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 Contents About Toyoda Gosei Value Creation Story Value Creation Strategy Foundation of Value Creation Data

（Millions of yen）

FY2020 FY2021
Consolidated statement of changes in equity Consolidated statement of cash flows
（　　　
March 31,　　）
April 1, 2020 to
2021 （　　　
March 31,　　）
April 1, 2021 to
2022

Equity attributable to owners of parent

Cash flows from operating activities
Other components of equity
　Profit before tax 37,301 37,696
Exchange Equity instruments
Share Capital Treasury Remeasurements
differences on measured at fair 　Depreciation and amortization 37,812 41,944
capital surplus shares of defined benefit
translation of foreign value through other
plans 　Impairment loss (reversal of impairment loss) 813 -
operations comprehensive income
Millions of yen Millions of yen Millions of yen Millions of yen Millions of yen Millions of yen
　Increase (decrease) in provision 4,749 （1,411）
Balance as of April 1, 2020 28,027 26,968 （1,220） （10,593） 12,826 - 　Increase (decrease) in retirement benefit liability 101 （414）
　Profit - - - - - - 　Decrease (increase) in retirement benefit asset 933 （2,240）
　Other comprehensive income - - - 8,705 6,289 3,657
　　Total comprehensive income - - - 8,705 6,289 3,657 　Finance income （2,800） （5,235）
　Issuance of new shares 18 18 - - - - 　Finance costs 3,116 2,566
　Purchase of treasury shares - - （11） - - -
　Dividends - - - - - - 　Share of loss (profit) of investments accounted
　Changes in ownership interest in subsidiaries - （1,360） - 531 - （0） for using equity method （903） （264）
　Change in scope of consolidation - - - - - - 　Loss (gain) on sale of fixed assets 668 75
　Transfer from other components of
- - - - - （3,657） 　Decrease (increase) in inventories　 （6,410） （15,789）
equity to retained earnings
　Other - - - - - - 　Decrease (increase) in trade and other receivable （2,707） （25,283）
　　Total transactions with owner 18 （1,341） （11） 531 - （3,657）
Balance as of March 31, 2021 28,046 25,626 （1,232） （1,356） 19,116 - 　Increase (decrease) in trade and other payables 6,187 13,718
　Profit - - - - - - 　Other （3,378） （8,344）
　Other comprehensive income - - - 19,735 4,910 253
　　Total comprehensive income - - - 19,735 4,910 253 Subtotal 75,485 37,019
　Issuance of new shares 23 23 - - - - 　Interest received 2,001 1,740
　Purchase of treasury shares - - （1） - - -
　Dividends - - - - - - 　Dividends received 893 1,178
　Changes in ownership interest in subsidiaries - （1,184） - - - - 　Interest paid （3,168） （2,582）
　Change due to capital increase - - - - - -
　Change in scope of consolidation - - - 29 - - 　Income taxes paid （7,964） （9,697）
　Transfer from other components of
- - - - - （253） 　Net cash provided by operating activities 67,247 27,658
equity to retained earnings
　　Total transactions with owners 23 （1,161） （1） 29 - （253） Cash flows from investing activities　
Balance as of March 31, 2022 28,069 24,465 （1,233） 18,407 24,026 - 　Payments into time deposits （16,142） （20,189）
　Proceeds from withdrawal of time deposits 15,673 13,297
Equity attributable to owners of parent
Other components Non-
　Purchase of property, plant and equipment, and intangible assets （49,595） （51,728）
of equity Retained
earnings
Total controlling Total 　Proceeds from sale of property, plant and equipment,
Total interests and intangible assets 632 1,206
Millions of yen Millions of yen Millions of yen Millions of yen Millions of yen
　Purchase of investments （566） （1,357）
Balance as of April 1, 2020 2,233 289,061 345,070 25,204 370,275
　Profit - 35,205 35,205 2,870 38,075 　Proceeds from sale of investments 16 -
　Other comprehensive income 18,652 - 18,652 1,246 19,898 　Other 33 （656）
　　Total comprehensive income 18,652 35,205 53,857 4,116 57,974
　Issuance of new shares - - 36 - 36 　Net cash used in investing activities （49,949） （59,427）
　Purchase of treasury shares - - （11） - （11） Cash flows from financing activities
　Dividends - （7,120） （7,120） （1,984） （9,104）
　Changes in ownership interest in subsidiaries 531 - （829） 1,335 506 　Proceeds from short-term borrowings 21,249 54,362
　Change in scope of consolidation - 80 80 373 453 　Repayments of short-term borrowings （39,749） （34,138）
　Transfer from other components of
（3,657） 3,657 - - - 　Proceeds from long-term borrowings 32,429 24,415
equity to retained earnings
　Other - - - 325 325 　Repayments of long-term borrowings （11,417） （27,868）
　　Total transactions with owners （3,126） （3,383） （7,844） 50 （7,794）
Balance as of March 31, 2021 17,759 320,883 391,083 29,372 420,455 　Repayments of lease liabilities （2,777） （3,073）
　Profit - 23,352 23,352 3,382 26,734 　Dividends paid （7,117） （9,071）
　Other comprehensive income 24,899 - 24,899 1,661 26,560
　　Total comprehensive income 24,899 23,352 48,251 5,043 53,294 　Dividends paid to non-controlling interests （1,984） （2,593）
　Issuance of new shares - - 46 - 46 　Payments of the abolition of the in-house deposit system （4,193） -
　Purchase of treasury shares - - （1） - （1）
　Dividends - （9,063） （9,063） （2,593） （11,657） 　Other 494 175
　Changes in ownership interest in subsidiaries - - （1,184） 1,606 421 　Net cash provided by (used in) financing activities （13,065） 2,206
　Change due to capital increase - - - 176 176
Net increase (decrease) in cash and cash equivalents 4,233 （29,562）
　Change in scope of consolidation 29 （355） （326） 383 57
　Transfer from other components of Cash and cash equivalents at beginning of period 127,930 134,003
（253） 253 - - -
equity to retained earnings
Effect of exchange rate changes on cash and cash equivalents 1,840 4,704
　　Total transactions with owners （224） （9,165） （10,529） （426） （10,955）
Balance as of March 31, 2022 42,433 335,069 428,804 33,989 462,794 Cash and cash equivalents at end of period 134,003 109,145

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 Contents About Toyoda Gosei Value Creation Story Value Creation Strategy Foundation of Value Creation Data

Company and Investor Information （As of March 31, 2022） External Recognition
Main Indices Selected in Composite
Location of 1 Haruhinagahata, Kiyosu, Aichi, Common stock Authorized 200,000,000 shares
headquarters 452-8564, Japan Issued 129,486,496 shares JPX Nikkei Index 400
（Excluding 558,510 shares of treasury stock）
Date of June 15, 1949
establishment Number of 13,403
S&P/JPX Carbon Efficient Index
shareholders

Capital ¥28 billion

Stock exchange Tokyo Stock Exchange and
listings Nagoya Stock Exchange
Consolidated 55 (14 in Japan, 41 in other countries) MSCI Japan Empowering Women Index (WIN) THE INCLUSION OF Toyoda Gosei Co., Ltd. IN ANY MSCI INDEX, AND THE USE OF MSCI LOGOS,
TRADEMARKS, SERVICE MARKS OR INDEX NAMES HEREIN, DO NOT CONSTITUTE A SPONSORSHIP,

subsidiaries
ENDORSEMENT OR PROMOTION OF Toyoda Gosei Co., Ltd. BY MSCI OR ANY OF ITS AFFILIATES. THE

Shareholder registry Mitsubishi UFJ Trust and Banking

MSCI INDEXES ARE THE EXCLUSIVE PROPERTY OF MSCI. MSCI AND THE MSCI INDEX NAMES AND
LOGOS ARE TRADEMARKS OR SERVICE MARKS OF MSCI OR ITS AFFILIATES.

administrator and special Corporation

Equity method 6 (3 in Japan, 3 in other countries) account management
affiliated companies institution
External Recognition for Sustainability
Number of Consolidated: 39,511　 Securities code 7282
employees Toyoda Gosei Co., Ltd.: 6,676
Nikkei SDGs Management Survey 2021 ★★★★☆

Distribution for Each Type of Shareholder Major Shareholders

CDP
Number of shares held Investment ratio (%)
Treasury stock at cost Shareholder name (unit: 1,000 shares) Climate Change 2021 Score: A−
Individuals, others 0.43％ Supplier Engagement 2021 Rating: A
7.52％ Toyota Motor Corporation 55,459 42.82
Water Security 2021 Score: A−
Financial institutions
Foreign 28.24％ The Master Trust Bank of Japan, Ltd.
corporations 13,192 10.18
(Trust Account) Energy Conservation Grand Prize
13.31％
　 (Best Practices category)
Custody Bank of Japan, Ltd.
7,844 6.05 　 Agency for Natural Resources and Energy
(Trust Account)
Financial instruments
business Commissioner's Award
Sumitomo Mitsui Banking
1.51％ 5,049 3.89
Corporation
Domestic business
2022 Health & Productivity Management
entities Toyoda Gosei Employee
48.99％ 1,626 1.25
Stock Ownership Association

Nippon Life Insurance

1,592 1.22 Sports Yell Company 2022
Company

The Dai-ichi Life Insurance

1,381 1.06
Company, Ltd.

State Street London Care of External Recognition for Communication

State Street Bank and Trust,
1,223 0.94
Boston SSBTC A/C UK London
Branch Clients- United Kingdom Securities Analysts Association of Japan: Third in automotive/automotive parts/tire division of the
2022 Award for Excellence in Corporate Disclosure
Daiei Sangyo Kaisha, Ltd. 1,041 0.80

Denso Corporation 1,002 0.77

* Share-holding stakes are calculated after deducting treasury shares.

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1 Haruhinagahata, Kiyosu, Aichi,
452-8564, Japan
Phone: +81-52-400-1055
https://www.toyoda-gosei.com/