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TS TECH Report 2015 TS TECH Report 2015 CONTENTS TS TECH Co., Ltd. Report 2015 TS TECH Report 2015 TS TECH Report 2015 CONTENTS TS Philosophy/Conceptual Overview of TS TECH’s CSR/Corporate Message Contents 01 TS Philosophy TS TECH’s Value Creation Process/Editorial Policy 02 A Message from the President 04 TS TECH’s Business 08 Beliefs Business Activity Highlights 10 “Due regard for human resources” Carrying on the TS TECH Spirit 12 Special Feature 1: The Spirit of Challenge in TS TECH’s Trailblazers 13 Special Feature 2: Passing Down the Spirit of Monozukuri 15 A “company welcomed with joy” Special Feature 3: Stakeholder Dialogue 18 How will automated driving alter intra-vehicle spaces? Young staff from the research group “Za-Lab” search for Company Principle the starting point of monozukuri and the future of sitting We will always provide comfortable, TS TECH’s Business Model 22 Sales: Doing battle with “proposal power” that impresses high-quality products at a competitive price customers and the ability to take action 23 for customers all over the world, Business Development: Its role is to become a command center for the expansion of sales beyond our pursuing our dreams existing customers 24 Research & Development: Attempting to create world-leading through creating products and technology that can conquer challenging infinite possibilities. global competition 25 Manufacturing: The key phrase on the frontline of monozukuri is “high quality” 26 Management Policies Our Relationship with Stakeholders 27 Our Relationship with Customers • Create a bright working atmosphere, respecting harmony and (Customer Companies and End Users) 28 communication among people. Our Relationship with Shareholders and Investors 30 Our Relationship with Business Partners 32 • Work in a harmonious manner, making the most effective use Our Relationship with Employees 34 of time and observing priorities. Our Relationship with Society and the Community 36 Our Relationship with the Environment 38 • Challenge the creation of new value, using wisdom in an en- thusiastic manner. Corporate Governance and Compliance 42 • Strive constantly for the realizaton of individual visions. Financial Report 44 Directors and Auditors 79 Global Network 80 Conceptual Overview of TS TECH’s CSR Third-Party Opinion 82 Customers Stakeholders CSR Corporate Message Local Shareholders TS Philosophy Communities Society In the manufacture of its products, TS TECH pursues safety, environmental A “Company Welcomed with Joy” sustainability, and comfort. The pursuit of comfort in particular is multifac- General eted and deep, and over the course of time, this pursuit is subject to an Society The Employees Environment Economy Corporate Risk infinite process of evolution. When we approach our tasks as individual members of the TS TECH Group, our actions are underpinned by the belief that comfort leads to satisfaction, which in turn brings joy to the end users Providing Safe and Comfortable Products of our products. Under the TS Philosophy, we are not bound to the Administration Suppliers Compliance present, but rather we create products that go beyond the present in order to bring joy to all our stakeholders. Our will and determination to TS Philosophy Internal Control Corporate Governance take on the challenges of a world whose future shape we cannot yet see TSCG are expressed through the words “Beyond Comfort.” TS TECH Report 2015 01 TS TECH’s Value Creation Process TS TECH’s business activities are based on the TS Philosophy and bring together a range of capital sources in a fusion of financial and non-financial. In conducting these activities, we employ strategies and resource allocation in line with factors such as the external environ- Shareholders and Investors ment, risks and opportunities. This enables us to develop comfortable, high-quality prod- Active disclosure of information and a high degree of transparency ucts and create long-term value for our stakeholders as we look to continuous growth. in corporate management Customers Always setting creative tasks Financial Capital Corporate Philosophy (Mission) from the customer’s viewpoint and proceeding Governance with the tasks from the customer’s position Manufactured Risks and Opportunities Strategies and Resource Allocation Capital Employees Business Model Business Model Intellectual Capital TS TECH’s TS TECH’s Services Value We Oer Taking pride in the company and Input work, keeping an open mind to Business Activities (Output) Stakeholders everything and acting under the notion that all people are equal Human Capital P.10-11 P.22-26 P.8-9 P.27-39 Business Partners Capital investment Output from in business activities business activities Natural Capital Results Forecasts Dealing with partners in a Governance fair and sound manner Local Communities Social Capital Making a positive contribution to the local community as a member The Environment of the community Editorial Policy In 2012 the TS TECH Group issued the TS TECH Report by integrating its annual reports and environmental reports. The TS TECH Taking positive actions for Report was reorganized from the twin perspectives of financial information and non-financial information (corporate social re- environmental protection sponsibility (CSR)). The Group is carrying out a variety of activities and initiatives in terms of the economy, the environment, and society in order to be a “Company Welcomed with Joy.” This report is issued with the purpose of fulfilling the Group’s accountability in these regards. About This Report's Formats Scope of the report ISO 26000 Related Pages Disclaimer Business activities pertaining to topics of importance to TS TECH have The TS TECH Report covers the entire TS TECH Group, which conducts ISO 26000 Section This report contains forward-looking statements from TS TECH been included in the printed report in an easy-to-read format. In business in Japan and around the world. However, the scope of the Core Subjects Co., Ltd. pertaining to plans, forecasts, strategies, and results. • A Message from the President P.04-07 addition to this information, the online report offers more detailed report may differ depending on business activities and CSR initiatives. Organizational These forward-looking statements are based on currently • Our Relationship with Shareholders and Investors P.30-31 information and data. Governance • Corporate Governance and Compliance P.42-43 available information, and actual results may vary significantly Period covered by the report from the forward-looking statements contained in this report In principle, this report covers the period from April 1, 2014 to March Human Rights • Our Relationship with Employees P.34-35 due to a range of variable factors. 31, 2015 (fiscal 2015), but it may include coverage of activities before Labour Practices • Our Relationship with Employees P.34-35 or after that period. For comments and inquiries regarding this report, The Environment • Our Relationship with the Environment P.38-41 Printed Report please contact us at the address below. Guidelines • A Message from the President P.04-07 Fair Operating Practices TS TECH Co., Ltd. The ISO 26000 international guidelines for corporate social responsi- • Our Relationship with Business Partners P.32-33 Public Relations Section, Administration Department Online Report bility issued in November 2010, the Global Reporting Initiative (GRI) • A Message from the President P.04-07 TEL:+81-48-462-1136 Information Important TECH TS to http://www.tstech.co.jp/english/csr/ Sustainability Reporting Guidelines Version 3.1, and the International Consumer Issues • Our Relationship with Customers and End Users P.28-29 Information Important to Stakeholders Integrated Reporting Framework issued by the International Integrat- FAX:+81-48-465-0403 Community Involvement and ed Reporting Council (IIRC) in December 2013 were consulted in • Our Relationship with Society and the Communitiy P.36-37 3-7-27 Sakae-cho, Asaka-shi, Saitama 351-0012, Japan Community Development editing this report. Date of publication: July 2015 02 TS TECH Report 2015 TS TECH Report 2015 03 A Message from the President Michio Inoue, President and Representative Director Michio Inoue joined Tokyo Seat (renamed TS TECH in 1997) in April 1977. He was appointed to the Board of Directors and as Executive General Manager of the Development and Engineering Division in 2002 and Director and Chairman of TS TECH North America, Inc. (now TS TECH AMERICAS, INC.) in 2008. Mr. Inoue was named Executive Vice President (Representative Director) of TS TECH in 2010 and has served as President since April 2013. Consolidated Results for the Fiscal rapid changes in the economic environment and a Year Ended March 2015 strong operational structure for areas such as produc- Consolidated results for the fiscal year ended March tion planning at all of our overseas locations. The 2015 included sales of 434,279 million yen (down Americas made an especially large contribution to 5.0% from the previous year), an operating income of improving our earnings structure. The following 35,286 million yen (down 9.8%), an ordinary income measures were implemented in North, Central, and of 40,362 million yen (down 6.0%), and net income South America, with each region producing solid for the year of 22,008 million yen (down 7.9%). results. Despite the effects of a favorable foreign exchange * North America: Doubled the size of the building for rate due to a weak yen and aggressive cost reduction TS TECH AMERICAS, INC., the company that serves efforts by the Group as a whole, lower
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