TOYOTA BOSHOKU REPORT 2014 2013.4.1—2014.3.31 Marking the 10th Anniversary of the Merger as We Head toward 2020 The Toyota Boshoku group was created in 2004 with the aim of becoming a truly global company. As we build on our achievements of the past 10 years, during which time we continually met new challenges while handing down the sentiments of our three predecessor companies, we will indomitably move ahead to realise Toyota Boshoku’s aspirations for 2020. Toyota Boshoku’s Aspirations for 2020 Our place in business (1) A company that persists in proposing excellent mobility for customers throughout the world 1) Readily provide products tailored to the various lifestyles of respective regions through innovative technologies that are unique to the Toyota Boshoku group and consistent in its manufacturing quality. 2) Have an established presence in terms of unique value by creating innovative, next-generation products that exceed customers’ expectations. 3) Strive to provide customers with environmentally friendly and enriched lifestyles by boldly pursuing inroads into new businesses. Our place in society (2) A trusted company that grows together with all stakeholders 1) Resourceful and multi-talented human resources drawn by the appeal of the Toyota Boshoku group, with members working enthusiastically in all regions worldwide 2) Recognised as a company that is trusted and indispensable to society, customers, business partners and shareholders 3) Capable of carrying out unequalled monozukuri in every region of the world while carrying out kaizen continuously Philosophy Based on the Principles of Toyoda, which encapsulate the ideas of founder Sakichi Toyoda, the Toyota Boshoku group formulated our corporate philosophy for maintaining the trust of all stakeholders and our vision, which articulates the type of company we aspire to become. With the corporate philosophy and vision serving as a framework, we have established clear policies, targets and plans for our business, social and environmental activities. We have also formulated the TB Way and the Toyota Boshoku group code of conduct to ensure that all company members share common values and behaviour. Principles of Toyoda Handing down the spirit of Sakichi Toyoda (established in 1935) Always be faithful to your duties, thereby contributing to society and to the overall good. Be at the vanguard of the times through endless creativity, inquisitiveness and pursuit of improvement. Always be practical and robust, and avoid extravagant and frivolous practice. Always strive to build a homelike atmosphere at work, one that is warm and friendly. Be reverent, and show gratitude for things great and small in thought and deed. Sakichi Toyoda Principles of Toyoda Corporate Philosophy Vision Toyota Boshoku TB Way Group Code Values, Annual Global Policy of Conduct stance and Sensible course action of action/ Global Functional Policy mindset Environmental Social Activities Business Activities Activities Corporate Philosophy 1. Society The Company will promote corporate growth while fulfiling the following responsibilities as a good corporate citizen: 1) Maintain ethical values, ensuring that our corporate activities are fair and transparent; 2) Supply safe products that do not harm the environment; Promote corporate activities that help protect the global environment; 3) Create a better society as a member of our local communities. 2. Customers The Company will develop innovative technologies and products to deliver quality that satisfies our customers. 3. Shareholders The Company will promote innovative management policies that ensure future corporate growth and the trust of our shareholders. 4. Employees The Company will build and maintain positive labour-management relations, respect the individuality of its employees and create safe and comfortable workplaces. 5. Business partners The Company will promote open and mutually beneficial relationships with its business partners in pursuit of long-term growth and prosperity. TB Way We contribute to society by developing leading-edge technologies and manufacturing high-quality products. 1. We meet challenges with courage and creativity, to realise our dreams. 2. We carry out kaizen continuously, aiming to achieve higher goals. 3. We practice genchi-genbutsu by going to the source to analyse problems and find their root causes. 4. Once a decision is made, we move quickly to carry out the plan, with passion and a sense of mission. 5. We seek to do our best, act professionally and take responsibility for our actions. 6. We respect the values of other cultures and accept differences, with an open mind and a global perspective. 7. As a good corporate citizen, we do what is right and contribute to society. 8. We respect the individual and use teamwork to produce the best result. ■Reafforestation activities CSR activities Number of trees planted 10 Years of Challenge and Growth 322,000 trees ■Number of persons registered with Through various data and photographs, we take a look back at the course of events during the 10 years the Toyota Boshoku Volunteer Centre since the rebirth of the Toyota Boshoku group. ■Amount of waste and basic unit results 818 The course of events prior to the merger of three companies is introduced in the Special Extra on page 21. 1.59 1.18 Business t/100 million yen t/100 million yen Reafforested area 270ha FY2005 102 ■Net sales FY2013 Number of trees planted FY2013 50,000 trees million yen 877,596 FY2013 FY2006 FY2013 million yen FY2008 1,218,399 Reafforested area 30ha FY2006 ■Amount of water consumption per Nurturing of global human resources basic unit results ■Number of affiliates Environment ■Users of trainee*1 system ■Users of ICT*2 system FY2013 109 0.11 ■Amount of CO2 emissions per t/100 million yen 149 160 ■Number of company members 0.18 basic unit results t/100 million yen 38,198 15.9 51 t-CO2/100 million yen 35 2 6 18,068 FY2004 78 FY2013 17.8 FY2013 t-CO2/100 million yen FY2005 FY2013 Total up to FY2006 FY2013 Total up to fiscal 2013 fiscal 2013 *1 Trainee: Toyota Boshoku members who learn about business operations outside Japan FY2004 FY2013 FY2008 FY2008 *2 Intra-Company Transfer: Toyota Boshoku members from outside Japan who visit Japasn to learn about business operations Technology/Products 2005 2011 Relax Captain Seat Sports seat exclusively for automobile racing 2008 Next-generation seat frames 2009 2009 2012 Seat cushion using Cabin air filter made by TB sports seat 2013 plant-derived material dual layer melt blow 2013 Railway seats construction method Fabric wall decoration for 2009 home interiors “Nunokabe” “La Seat” cover-exchangeable seats 2008 Round recliners utilising fine 2009 2010 2012 2013 2013 2006 2007 hold stamping (FHS) Intake manifold for Resin cylinder Air cleaner case using Motor core constituent parts Innovative sports seat utilising Headliner illumination Leather instrument panels process horizontally opposed engine head cover with OCV plant-based kenaf material for hybrid systems the Foam in Place Method 2004 2007 2008 2011 2014 2018 Merger of three companies Phase 2: Period for Structural reform period aimed Toward 2020 “gaining a foothold and Period for creating a “strong corporate structure” ●90th anniversary of establishment at making major strides ●10th anniversary ●100th anniversary toward the future establishing a foundation of merger of establishment for growth” Principal events at Toyota Boshoku October 2004 December 2006 December 2006 October 2008 November 2008 April 2009 May 2010 February 2011 April 2011 July 2011 September 2011 September 2013 Start of Toyota Boshoku First All TB Skills Global reafforestation Research Laboratories Global Learning Centre Toyota Boshoku Technical No. 2 building of the Technical Skills Training First exhibit at Auto Boshoku Automotive Toyota Boshoku Milan First exhibit at IAA 65th Competition activities started (Indonesia). established. completed. Skills Academy opened. Sanage Development Centre established. Shanghai 2011 Europe established. Design Branch established. International Motor show Centre completed. ■Reafforestation activities CSR activities Number of trees planted 322,000 trees ■Number of persons registered with the Toyota Boshoku Volunteer Centre ■Amount of waste and basic unit results 818 1.59 1.18 Business t/100 million yen t/100 million yen Reafforested area 270ha FY2005 102 ■Net sales FY2013 Number of trees planted FY2013 50,000 trees million yen 877,596 FY2013 FY2006 FY2013 million yen FY2008 1,218,399 Reafforested area 30ha FY2006 ■Amount of water consumption per Nurturing of global human resources basic unit results ■Number of affiliates Environment ■Users of trainee*1 system ■Users of ICT*2 system FY2013 109 0.11 ■Amount of CO2 emissions per t/100 million yen 149 160 ■Number of company members 0.18 basic unit results t/100 million yen 38,198 15.9 51 t-CO2/100 million yen 35 2 6 18,068 FY2004 78 FY2013 17.8 FY2013 t-CO2/100 million yen FY2005 FY2013 Total up to FY2006 FY2013 Total up to fiscal 2013 fiscal 2013 *1 Trainee: Toyota Boshoku members who learn about business operations outside Japan FY2004 FY2013 FY2008 FY2008 *2 Intra-Company Transfer: Toyota Boshoku members from outside Japan who visit Japasn to learn about business operations We introduce various types of comparable data following the Toyota Boshoku group merger. Technology/Products Periods of comparison differ depending on the start date of initiatives and the start date of data collection. 2005 2011 Relax Captain Seat Sports seat exclusively for automobile racing