Tsubaki Corporate Report 2012
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TSUBAKI CORPORATE REPORT 2012 TSUBAKI Corporate Report 2012 Innovation in Motion Excellence in Manufacturing for Customers around the World Tsubaki Mission Statement Our Mission —Excellence in Manufacturing for Customers around the World We will provide the best value to customers around the world by capitalizing on our technical strengths in power transmission products and materials handling systems. Our Vision We aim to be a leading company in the global markets for our products. Innovation in Motion Excellence in Manufacturing for Customers around the World For the Tsubaki Group, we believe it is our mission to provide the best value to customers around the world. Striving to fulfill this mission, we have continued to further enhance our core strengths, principally our development capabilities, which enable us to develop products that are superior in terms of such character- istics as durability and energy consumption; the customizability of these products, which can be arranged to meet the needs of specific customers; and the Group’s production technologies, which have been fine-tuned to feature unrivaled levels of efficiency and quality. Leveraging these strengths, we have consistently created products that have come to boast leading market shares. The strong sense of pride and conviction that we hold as a manufacturing company will continue to drive us forward as we vigilantly endeavor to provide the best value to our customers, society, and the world as a whole. This devotion is the source of the Tsubaki Group’s sustainable growth. Tsubaki Corporate Report 2012 1 Contents The Tsubaki Group’s Challenges and Strat egies Snapshot —Targeting Sustainable Improvements in Corporate Value This section offers an overview of the Tsubaki Group’s business In this section, we will explain the challenges faced by the activities, environmental and social contribution activities, global Company and its strategies to strengthen foundations, corporate network, principal products, and technological edge. governance systems, and human resource and workplace development efforts as well as the environmental and social 04 Highlights of the Tsubaki Group’s Business Activities contribution activities we are conducting through our 5 The Tsubaki Group’s Growth manufacturing operations. 6 Overview of Tsubaki’s Business, Financial Information, 14 Strengthening Foundations and Developing Businesses and Results of Social Contribution and Environmental Activities 14 Quick Review 7 Tsubaki’s Global Network Medium-Term Management Plan 2012 (FYE 2011–2013) 08 Highlights of the Tsubaki Group’s Products and Technologies 16 Interview with the President 9 Tsubaki’s Differentiated Technologies Challenges Faced by the Group and Improvement Measures 10 Tsubaki’s Product Lineup Review of Operations 12 Tsubaki Products in Our Everyday Lives 20 Chain and Power Transmission Units and Components Operations / Automotive Parts Operations / Materials Handling Systems Operations Notes on the Production of this Report The Company realizes that corporate value is based on a comprehensive results of these initiatives. In this manner, the report explains issues that evaluation of the operating results of a company and a variety of other factors, could affect the sustainability of the Company’s growth. We believe this new including its social responsibility. Based on this understanding, the Company form of corporate report will assist stakeholders in developing a more compiled its various information transmission tools for stakeholders, including comprehensive evaluation of the Company. its annual report and environmental and CSR reports, into a single corporate For more detailed information and numerical data, please refer to the report. This report contains explanations on Tsubaki’s corporate philosophy, Company’s website (http://tsubakimoto.com/). strategies for strengthening foundations, performance, and policies for conducting environmental and social contribution activities as well as the The logos, brand or product names in this report are trademarks or registered trademarks of Tsubakimoto Chain Co. in Japan and other countries. 2 Tsubaki Corporate Report 2012 The Tsubaki Group’s Challenges and Strat egies Financial Data and Supplementary —Targeting Sustainable Improvements in Corporate Value Information 23 TOPICS 40 Numerical Data Launch of a Project for Supplying Chains to China —Operating Environment Data and Performance of 24 Pursuit of Ideal Corporate Governance Tsubaki’s Business Segments 27 Stringent Compliance and Risk Management 42 Report and Analysis of Financial Condition and Results of Operations for FYE 2012 28 Human Resource Development and the Creation of Conducive Workplace Environments 44 Principal Tsubaki Group Companies 30 TOPICS 45 Corporate Data and Stock Information The Tsubaki Group’s Human Resources Development Initiatives 31 Coexistence and Co-Prosperity with the Environment and Society 33 TOPICS Tsubaki’s Eco-Products 37 TOPICS The Tsubaki Group’s Social Contribution Activities 38 Board of Directors, Corporate Auditors, and Executive Officers tsubakimoto.com The Tsubaki Group’s website contains information for shareholders and other investors, such as its financial statements, as well as information on its environmental and social contribution efforts, including descriptions of Tsubaki’s eco-products and environmental impact data; however, not all information is available in English. Forward-Looking Statements Data Regarding Environmental and Social Initiatives In certain cases, the information in this report is based on estimates and forecasts This report was prepared with reference to the Ministry of the Environment of Japan’s made by the Tsubaki Group. The accuracy of data from external sources, including “Environmental Reporting Guidelines 2012,” the Ministry of the Environment of Japan’s statistics, is not guaranteed. As a general rule, figures less than one unit have been “Environmental Accounting Guidelines 2005,” and the Global Reporting Initiative rounded down to the nearest whole number. Also, unless otherwise specifically stated (GRI)’s “Sustainability Reporting Guidelines, Third Edition (G3).” all numerical values relating to Company performance and its financial position have been calculated on a consolidated basis. Reporting Period: April 2011 to March 2012 (includes some activities after the reporting period) Scope of Data Collection: Tsubakimoto Chain Kyotanabe Plant, Saitama Plant, and major Tsubakimoto Chain subsidiaries and affiliates (Tsubaki Emerson, Tsubakimoto Custom Chain, Tsubakimoto Sprocket, Tsubakimoto Bulk Systems, Tsubakimoto Mayfran, Tsubakimoto Iron Casting, and Tsubaki Yamakyu Chain) Tsubaki Corporate Report 2012 3 Snapshot Highlights of the Tsubaki Group’s Business Activities Corporate Profile In 1917, Tsubakimoto Chain Co. began its operations as a manufacturer of chains, later expanding its operations to include materials handling systems, automotive parts, and power transmission units and components. The Company has since evolved to become a general manufacturer of equipment in the field of motion control, offering a vast and diverse lineup of related industrial machinery and parts as well as systems. Today, the Company conducts these operations in Japan as well as abroad, in such regions as North America, Europe, Asia, and Oceania. Distribution of Net Sales by Segment* Distribution of Operating Income by Segment* (FYE 2012, Consolidated) (FYE 2012, Consolidated) % Other1% Other 2 Materials Handling Systems Materials Handling 7% Systems Chain 19% Chain 29% Net Sales 35% Operating Income ¥144.8 ¥12.0 billion Automotive Parts billion Automotive Parts 41% Power Transmission Power Units and Components 30% Transmission Units and Components 21% 15% *Percentages are for total net sales per segment prior to adjustment for intersegment transactions. 4 Tsubaki Corporate Report 2012 The Tsubaki Group’s Growth Net Sales Operating Income FYE 2012 FYE 2012 Scale ¥144.8 billion ¥12.0 billion 1.3 2.0 times times FYE 2002 FYE 2002 ¥113.7 billion ¥6.0 billion Operating Income Margin ROE FYE 2012 FYE 2012 8.3% UP 7.9% UP 3.0 6.0 percentage points percentage points FYE 2002 FYE 2002 Efficiency / 5.3% 1.9% Financial Soundness D/E Ratio (Net) Operating Income per Employee FYE 2012 FYE 2012 times 0.15 Improved ¥1,960,000 0.79 1.6 times times FYE 2002 FYE 2002 0.94 times ¥1,220,000 Indicators per ¥1 Million of Ordinary Income Employees FYE 2012 FYE 2012 CO2 emissions Energy consumption Social Responsibility / Environment- 5.0 t 121GJ 6,160 Friendliness Down Down 1.3 46% 46% times FYE 2004* FYE 2002 9.2t 223GJ 4,916 * Data is collected starting from the fiscal year ended March 31, 2004. Tsubaki Corporate Report 2012 5 Overview of Tsubaki’s Business, Financial Information, and Results of Social Contribution and Environmental Activities In its Chain Operations, the Tsubaki Group offers a wide variety of Tsubaki’s Operational Fields industrial-use drive and conveyor chains, including the drive and Business Model chains used in drive systems and the conveyor chains that are a Parts and units Parts central component of production lines. The Group provides these From 1960 From 1917 products to various industries, such as the industrial machinery, machine tool, automobile, shipbuilding, steel, and liquid crystal Power Transmission Units and Components display (LCD) / semiconductor industries. At the same time, the Operations Chain Group’s Automotive Parts Operations supply the timing chain drive Operations systems that help support