TAIYO YUDEN CO., LTD.
INTEGRATED REPORT 2023
2 TAIYO YUDEN INTEGRATED REPORT 2023
Our Profile
TAIYO YUDEN INTEGRATED REPORT 2023 | 3 |
We are a global manufacturer of electronic components that develops and manufactures products indispensable to people's lives
TAIYO YUDEN develops, manufactures, and sells electronic components for use in a range of
electronic equipment that are essential to people's lives, including smartphones and
Multilayer ceramic capacitor (MLCC)
Global market share
No.3
(As of FY2022 (According to in-house research))
Mass production of the
world's smallest MLCC
(0.25×0.125mm)
other communication equipment, automobiles, and IT infrastructure/industrial equipment. The Company boasts advanced technological capabilities, continuing to produce the world's smallest MLCC, and supplies its products globally.
Reference: No. of MLCCs used in electronic equipment (As of December 2022 (According to in-house research))
Per smartphone* | Per electric vehicle |
Approx.1,500 | Approx.10,000 |
*High-end model |
Operating profit | GHG absolute emissions | ||||
reduction rate (Compared to FY2020) | |||||
FY2017 | FY2022 | ||||
20.2 billion | 31.9billion | -18.3% | |||
(8.3%) | (10.0%) | (FY2022) |
Operating margin is shown in parentheses.
Net sales
¥ 319.5billion
(FY2022)
Overseas sales ratio
89.7%
(FY2022)
Ratio of overseas production
64.7%
Sales composition ratio by region (FY2022)
Other
countries and
regions
53.7%
China
36.0%
Japan
10.3%
Accident frequency rate*
0.07
(FY2022)
*The accident frequency rate is the number of fatalities and injuries caused by work-related accidents per one million actual working hours and represents the frequency of accidents. The average for the Japanese manufacturing industry for FY2022 was 1.25
Rate of newly recruited female graduates
35%
(As of April 1, 2023)
(FY2022)
4 TAIYO YUDEN INTEGRATED REPORT 2023
Contents
2 Our Profile
Section 1Section 2Value | Strategies for | ||
Creation | the Creation of | ||
Story | Value | ||
8 | Mission, Management Philosophy, Vision | 32 | Smart Product Development System |
10 | History of Value Creation | 34 | Market Environment and Business Development |
12 | TAIYO YUDEN's Value Provision | 36 | Value Creation Model |
14 | Business Activities that Provide Value | 38 | At a Glance |
16 | Materiality | 42 | R&D |
- Medium-termManagement Plan 2025 (FY2021-FY2025)
- Financial and Non-financial Highlights
- Message from the President
- Message from the Officer in charge of Finance
Section 3
Foundation
Underpinning
Value Creation
48 Feature 1: Dialogue Between the Chairperson of the Company and the Chairperson of the Nomination Committee On the Appointment of a New President
51 Feature 2: Roundtable Discussion with the Outside Directors Towards the Sustainable Improvement of
TAIYO YUDEN's Value
- Executives
-
ESG
56 (G) Governance
63 Compliance and Risk Management
66 Sustainability
67 (E) Environmental Activities
69 Efforts to Address Climate Change
75 Efficiently Using Resources and Helping to Build a Recycling-Based Society
77 (S) Social Activities
81 Human Resources Strategy
87 Stakeholder Communication
TAIYO YUDEN INTEGRATED REPORT 2023 | 5 |
Corporate Data
- 11-yearFinancial and Non-financial Summary
- Financial Review
- Consolidated Financial Statements
100 ESG Data
- External Evaluation
- Corporate Data
- Stock Information
22 Message from the President | 27 Message from the Officer in charge | 38 At a Glance | 48 Dialogue Between the Chairperson | 51 Roundtable Discussion with the |
of Finance | of the Company and the Chairperson | Outside Directors | ||
of the Nomination Committee |
76 Message from the Officer in charge of Safety and Environment
6 TAIYO YUDEN INTEGRATED REPORT 2023
On the Publication of the Integrated Report 2023
TAIYO YUDEN began its five-yearmedium-term management plan 2025 in FY2021 and currently we are standing at the halfway point of the third year of the plan. Furthermore, as a consequence of the replacement of the President in June 2023, we are working on achievement of this plan under a new management structure.
In the Integrated Report, we explain the value creation activities of TAIYO YUDEN centered on initiatives for the medium -term management plan 2025 which aims for greater corporate value as both greater economic value and greater social value. This time we have worked to expand the content of the report, including the At a Glance section, the environment, human rights, our human resources strategy, etc. based on the feedback we have received through dialogue with our stakeholders. Furthermore, we also introduce our approach concerning the succession of the President. In preparing the report, the President and Chief Executive Officer, the officer in charge of corporate planning, and other members of management and each division collaborated to ensure that a proper process was followed. We hope that reading it will help deepen your understanding of the TAIYO YUDEN Group.
We will continue to place value on the dialogue we have with our stakeholders and strive to enhance both our information disclosure and transparency.
October 2023
Director, Executive Operating Officer
Tomomitsu Fukuda
Departments involved in the publication of the Integrated Report 2023 (in alphabetical order)
TAIYO YUDEN CO., LTD.
Accounting Department, Diversity Development Department, General Affairs Department, Global Logistics Department, Human Resources Department, Human Resources Planning Department, Intellectual Property Department, Legal Department, Management Information System Department, President's Office, Procurement Management Department, Public Relations Department, and Research and Development Laboratory
Scope of Report
This report covers (as of March 31, 2023) 33 companies, comprising TAIYO YUDEN, 11 domestic subsidiaries and 21 overseas subsidiaries.
Reference Guidelines
For editing purposes, reference was made to the International Integrated Reporting Framework recommended by the IFRS Foundation and the Guidance for Collaborative Value Creation provided by the Ministry of Economy, Trade and Industry. For ESG-related information, we referred to the Ministry of the Environment's Environmental Reporting Guidelines (2018 version). We also used the GRI Standards as a reference guideline.
Our GRI Standard Comparison Table | Information Disclosure Structure | |||||||||||
can be viewed on our website: | Value creation story | |||||||||||
https://www.yuden.co.jp/or/company/ | ||||||||||||
sustainability/misc/GRI/ | ||||||||||||
Financial | Integrated Report | Non-financial | ||||||||||
For details on TAIYO YUDEN's financial and | information | information | ||||||||||
Information for | Sustainability/ | |||||||||||
non-financial information, please visit our website at: | ||||||||||||
shareholders and investors | ESG information | |||||||||||
Investor Relations | Securities Report | Safety & Environmental | ||||||||||
https://www.yuden.co.jp/or/ir/ | Financial Results, Presentations | Report | ||||||||||
Website | Corporate Governance | |||||||||||
Shareholder and Investor | Report | |||||||||||
Sustainability | Relations | Website | ||||||||||
Sustainability | ||||||||||||
https://www.yuden.co.jp/or/company/ | ||||||||||||
sustainability/ | ||||||||||||
Comprehensive nature | ||||||||||||
Notes | Disclaimer |
• In this report, the fiscal year will be displayed as follows. | This report is intended to provide information about the business performance |
Example: April 1, 2022 to March 31, 2023 | and strategies of the TAIYO YUDEN Group. It is not intended as an inducement |
FY 2022 or fiscal year ended March 2023 | to purchase or sell stock in TAIYO YUDEN. Statements in this report that are |
not historical fact are forward-looking statements based on the current beliefs, | |
• The figures in this report omit amounts less than hundred million yen and | |
estimates and expectations of TAIYO YUDEN Group management. As these | |
1 million yen and displays it. | |
beliefs, estimates and expectations are subject to a number of risks, uncertainties | |
• The English-language version of this report is based on the Japanese- | |
and assumptions, actual results may differ materially. TAIYO YUDEN undertakes | |
language version. With the exception of the financial statements, all | |
no obligation to update any forward-looking statements, and shall in no event | |
figures presented have been rounded down to the nearest appropriate | |
be liable for any damages arising out of the use or interpretation of this material. | |
unit. As a result, there are cases when a presented figure differs slightly | Please refrain from copying or disseminating this material without the prior |
from the equivalent figure in the financial statements. | consent of TAIYO YUDEN. |
• The contents of this report are correct as of June 29, 2023. Some of the | |
content includes information from after that date. |
TAIYO YUDEN INTEGRATED REPORT 2023 | 7 |
Section 1
Value
Creation
Story
Since its founding in 1950, TAIYO YUDEN has been engaged in the Electronic
Components Business, focusing primarily on capacitors.
By constantly taking on new challenges and leveraging its long-honed core technologies, the Company has not only made lifestyles more convenient, but has also contributed to the discovery of solutions to various social issues.
8 | Value Creation Story | Strategies for the Creation of Value | Foundation Underpinning Value Creation | Corporate Data |
Mission, Management Philosophy, Vision
Stronger and more socially aware through the
wonders of science
TAIYO YUDEN's electronic components are critical in the manufacturing of various pieces of electronic equip- ment. Our products support the evolution of electronics technology that is indispensable for people's safe, secure, comfortable, and convenient lives.
In order to create, advance, and deliver these small but important electronic components to every corner of society, we are seeking to broaden and increase the depth of new knowledge while pursuing the sophistication of our technologies and skills. Meanwhile, the strengths that we have accumulated throughout our history have generated incidental discoveries and inspirational encounters, which opened the door to unexpected future of innovative solutions and expansion into new areas of scientific advancement. The foundation of this process is "the wonders of science," which is the source of TAIYO YUDEN's corporate value enhancement.
We will provide electronic components to the world and create greater economic value. As a company that contributes to the realization of a better society, we will continue to enhance social value. As a member of society, our constant and enduring aspiration is to fulfill this mission.
The Mission of TAIYO YUDEN
TAIYO YUDEN INTEGRATED REPORT 2023 | 9 |
Management Philosophy of TAIYO YUDEN
Employee well-being
Betterment of local communities
Responsibility to provide returns to shareholders
Hikohachi Sato, the founder of TAIYO YUDEN, worked as a researcher in ceramic materials before the second world war. Following the belief that 'product commercialization should start from the development of materials,' Mr. Sato launched TAIYO YUDEN to develop and commercialize titanium-oxide porcelain capacitors in 1950.
He also believed that affection for others was the most valuable thing a person could have. The Company's management philosophy has three major compo-
nents, all of which are designed to improve the social nature of the Company and contribute to cultural development by creating an environment in which employees and their families can live their lives in happiness and prosperity.
Mission
Stronger and more socially
aware through the wonders of science
Management
Philosophy
Through the power of the wonders of science, support the evolution of the electronics technologies which are essential for safe, secure, comfortable, and convenient lives
The Values of TAIYO YUDEN
Employee well-being Betterment of local communities
Responsibility to provide returns to shareholders
Realization of the Management Philosophy
The beliefs and philosophy of Mr. Sato live on as the underlying
spirit of TAIYO YUDEN. | Founder Hikohachi Sato |
Vision
Strategy
System and Action Guidelines
To be an excellent company that enjoys the trust and highest regard from all stakeholders
Medium-term Management Plan
Aim for greater corporate value through both economic value and social value
Daily Standards of Conduct for
Strategy Execution
Management systems such as
ISO, IATF, etc., the CSR Code of
Conduct, etc.
A base materials plant (the Takasaki Plant) in about 1957
10 | Value Creation Story | Strategies for the Creation of Value | Foundation Underpinning Value Creation | Corporate Data | TAIYO YUDEN INTEGRATED REPORT 2023 | 11 |
History of Value Creation
Changing with the times,
we have continuously met the needs of society
TAIYO YUDEN has since its founding provided to companies around the world a variety of electronics components, including inductors and communication devices, with a focus in particular on multilayer ceramic capacitors, the Company's mainstay product. This in turn has served to meet the needs of society while creating value.
1980s
Portable CD players, car phones and other devices make their appearance
-2010
Increased use of home video games, mobile phones, PCs and other devices
IT-related product demand rises while international specialization advances
2011-
Use of smartphones and tablets surges while trend toward the electrification of automobiles accelerates
Smartphones, tablets and other devices become more functional, compact and thinning
(Billions of yen)
400.0
1950s | 1960s |
Transistor radios make their | Production of TVs, transistor |
radios and other items expands | |
appearance | |
as export products | |
Increased use of radios, | Overseas demand rises | |
TVs and other electronic | ||
equipment | ||
Net Sales | ||
Founding | ||
1950 | 1960 | 1970 |
The Value Provided by TAIYO YUDEN |
1970s
Increased use of home-use video tape recorders (VTR), audio equipment and other items
Energy conservation, power saving
1980
Electronic devices become increasingly compact and lightweight
Overseas Sales Ratio
FY2000
62.0
%
19902000
FY2010
77.1
%
2010
300.0
FY2022
Net Sales
¥319.5 billion 200.0
Overseas
Sales Ratio
89.7%
100.0
FY2020
90.3
%
0
2020
Sept. 1950
Sales of Rutilcon, barium titanate tubular ceramic capacitors, began
Sept. 1954
Production of Ferrit Cores, small ferrite cores, began
Sept. 1964
Established the technical research laboratory
May 1967
Established our first overseas subsidiary TAIWAN TAIYO YUDEN CO., LTD. in Taipei
TAIWAN TAIYO YUDEN at the time of establishment
Mar. 1970
Listed on the Second Section of the Tokyo Stock Exchange. In 1973, moved to the First Section
July 1976
The world's first commercialization of axial leaded ceramic capacitors began
Oct. 1977
Developed world's first tubular chip type ceramic capacitors
July 1984
The world's first commercialization of nickel electrode high-capacitance multilayer ceramic capacitors began
[3216] type and [3225] type
Sept. 1988
Announced the release of the world's first recordable CD-R compact disks
DVD-R,BD-R,CD-R
1999-2000
Established four production bases abroad simultaneously
TAIYO YUDEN (SARAWAK)
Apr. 2001
Acquired the world's first Blue- tooth® standard version 1.1 qualification for Bluetooth® full modules
Mar. 2010
TAIYO YUDEN Mobile Technology Co., Ltd. became a subsidiary
Apr. 2018
ELNA CO., LTD. became a subsidiary
May 2018
Developed the world's first multilayer ceramic capacitors with a capacitance of 1,000μF
4532 size (4.5mm×3.2mm) with 1,000μF capacitance
Mar. 2020
The world's first commercialization of automotive multilayer metal power inductors
Multilayer metal power inductor "MCOILTM MC Series" (1.6mm×0.8mm×1.0mm, 0.47μH)
12 | Value Creation Story | Strategies for the Creation of Value | Foundation Underpinning Value Creation | Corporate Data |
TAIYO YUDEN's Value Provision
TAIYO YUDEN is expanding the scope in which it provides value toward the creation of a prosperous society
TAIYO YUDEN INTEGRATED REPORT 2023 | 13 |
TAIYO YUDEN's products are used across a wide range of fields. For example, our multilayer ceramic capacitors, a mainstay product, are used in products which are present all around us in our daily lives such as smartphones, PCs, tablet devices, TVs, game consoles, etc. In recent years, vehicle computerization and electrification of products have further expanded the scope in which we provide value toward the creation of a prosperous society.
TAIYO YUDEN Main Products
p.38 At a Glance
Sales Composition by Market Sector
(FY2022)
Others | Capacitors | 65% | |||||||
8% | |||||||||
TAIYO YUDEN offers aluminum electrolytic capacitors | Capacitors are used in a wide variety of electronic | ||||||||
that are optimal for mounting on increasingly electroni- | equipment to temporarily store electricity and remove | ||||||||
cized automobiles as well as various types of power | electronic noise. TAIYO YUDEN excels in producing | ||||||||
storage devices. | leading-edge,highly-reliable multilayer ceramic capaci- | ||||||||
tors which are best suited to cutting-edge electronic | |||||||||
devices including smartphones and automobiles, and | |||||||||
large numbers of multilayer ceramic capacitors are | |||||||||
loaded into such devices. | |||||||||
Integrated Modules | 10% | 17% | |||||||
& Devices | Inductors | ||||||||
The Integrated Modules & Devices classification's main | Inductors are used in electronic equipment power and | ||||||||
products are FBAR/SAW devices for mobile communica- | high-frequency circuits for blocking alternating current | ||||||||
tions, which are used primarily in smartphones to enable | while allowing direct current to pass through. | ||||||||
high-speed and high-quality data communications. | |||||||||
CASE
Contributing to a New Era in
Motorization
The advancement of four megatrends in the mobility revolution, or CASE (Connected, Autonomous, Shared
- Service, and Electric) is likely to propel strong growth in autonomous driving vehicles and electric vehicles. We also expect it to drive a continued expansion in demand for electronic control units (ECUs) which are critical for vehicle computerization and electrification and electronic components.
5G/6G
Responding to the Rapid
Increase in Data Transmission
Volume
Fifth generation mobile communications (5G) services commenced in 2018. Their applications are expected to extend not only to smartphones but also to a variety of IoT devices and remote controlled robots, resulting in the rapid development of information-based infra- structure, including 5G base stations and servers. The 6G system, which is beyond the 5G system, is forecast to increase data traffic even further.
Automobiles
Advanced driver assistance systems (ADAS)
Meter clusters Electronic control units
IT infrastructure / Industrial equipment
Base station communication equipment
Servers Security cameras
Communication equipment
Smartphones
Information equipment
Tablet devices
PCs
HDD/SSD
Consumer products
TVs
Game consoles
Smart watches
Sales Composition by Market Sector
(FY2022)
28%
24%
25%
15%
8%
14 | Value Creation Story | Strategies for the Creation of Value | Foundation Underpinning Value Creation | Corporate Data | TAIYO YUDEN INTEGRATED REPORT 2023 | 15 |
Business Activities that Provide Value
TAIYO YUDEN supports a society which "connects" people and things
"Connecting" people and things creates new value, bringing constant changes to society. TAIYO YUDEN's mainstay electronic components and the solutions they deliver continue to support all "connections" in life and help build a prosperous society.
Development | ||
of 5G/6G | ||
Reduction of the | services | |
management work | ||
for rivers and | ||
Disaster | waterways with the | High quality |
River Water Level | ||
readiness | wireless | |
Monitoring System | ||
communication | ||
IoT
Society connected
by IoT and
sensing
Value creation through products
p.38 At a Glance
Value creation through solutions
ADAS and
other vehicle
advances
Visualization of the | ||||
Contribution to zero | location information | |||
for people and | ||||
energy consumption | ||||
things inside the | ||||
and CO2 emissions | Smart factory | |||
plants with the | ||||
Zero carbon | and healthy lifespan | |||
productivity | soliot™ IoT Engine | |||
society with smart | extension with the | |||
improvements | Location Detection | |||
Regenerative Electric | ||||
mobility services | ||||
System | ||||
Assist System | ||||
Financial | Intellectual | Manufacturing |
capital | capital | capital |
Advances financial strategies | Contributes to the evolution | Establishes high efficiency |
that support sustainable | of electronics technology | production and stable supply |
growth | through R&D | systems |
Virtual space
Efficient | |
maintenance of | |
bridges and roads is | |
Efficient social | feasible with the |
Bridge Monitoring | |
infrastructure | |
System | |
development | |
Increasing
xEV
Human | Social/related | Natural |
capital | capital | capital |
Trains innovative talent who | Strengthens mutual trust | Contributes to achieving a |
will generate new value | with stakeholders | sustainable recycling society |
16 | Value Creation Story | Strategies for the Creation of Value | Foundation Underpinning Value Creation | Corporate Data | TAIYO YUDEN INTEGRATED REPORT 2023 | 17 |
Materiality
In order to achieve its mission of "stronger and more socially aware through the wonders of science," TAIYO YUDEN has designated the most important issues it faces as "materiality," or "key issues." In our
medium-term management plan 2025, which began in FY2021, we drew up priority measures and KPIs linked to key issues for both economic and social value, and we are in the process of carrying them out.
Materiality (Key Issues) | ||
Identification Process | Step | Establish mission and reaffirm |
1 | management philosophy and vision |
TAIYO YUDEN celebrated its 70th anniversary in 2020. To mark this occasion, it established a new mission of "stronger and more socially aware through the wonders of science," which is to be pursued unchanged and perpetually to become a centennial company. In addition, we reaffirmed our management philosophy, which is our value, and our vision.
Step | Extract issues and initiatives relating |
2 | to economic and social values |
During the discussions in Step 1, we recognized that increasing corporate value perpetually requires increasing not only economic value but also social value. In the process of formulating medium-term management plan 2025, we reviewed and extracted issues and initiatives related to economic and social values that we had been aware of.
Gauge the demands and | Set priority order and extract | |||||
Step | Step | Step | Approve materiality | |||
3 | expectations of stakeholders | 4 | issues as materiality | 5 | ||
Based on the details outlined through Step 3 (issues | ||||||
We engaged (held constructive dialogue) with sharehold- | We identified a set of issues as materiality in the | |||||
ers, investors, customers, business partners, employees, | extracted, demands and expectations for TAIYO YUDEN, | course of the numerous discussions among | ||||
and other stakeholders to gauge their demands and | extent of feasible contribution, degree of relevance to | management. Materiality was then approved by | ||||
expectations for TAIYO YUDEN and the extent to which | the business, etc.), we extracted issues that the Com- | the Board of Directors and announced. | ||||
we can make a contribution. | pany should continue to prioritize. |
Materiality and Priority Measures
Category | Materiality (Key Issues) | SDGs Targets | Medium-term Management Plan 2025 | Medium-term | Management Plan 2025 KPIs | Example Initiatives in FY2022 | Related Pages | ||||||
Priority Measures | Item | Target | FY2022 Actual | ||||||||||
• Product Strategy | Initiatives for the development and stable supply of high-quality smart products that reduce environmental impact | ||||||||||||
Further grow the MLCC business and strengthen | • Capacitors: Strengthened the product appeal of high-reliability MLCCs and shifted to large shaped products | p.38 At a Glance | |||||||||||
inductor and communication device products to | • Inductors: Expanded our lineup of power inductors and improved our item mix | ||||||||||||
turn them into core businesses | • Communications devices: Development of next-generation products for use in 5G mobile communications | ||||||||||||
Strengthen core technologies to | Goal 7: | • Market Strategy | Net sales | 480.0 billion yen | 319.5 billion yen | • Expanded our supply capacity through production capacity increase, and expanded sales in the high added value | p.18 Medium-term | ||||||
Increase the proportion of sales in focus markets, | |||||||||||||
make our core business grow | Affordable and | primarily automotive and IT infrastructure/industrial | zone for automobiles and IT infrastructure/Industrial equipment | Management Plan | |||||||||
Clean Energy | Operating margin | 15% or higher | 10.0% | • Expanded the proportion of sales in focus markets to 52% | 2025 | ||||||||
Economic Value | equipment, to 50% | ||||||||||||
Goal 9: | ROE | 15% or higher | 7.5% | ||||||||||
• Financial Strategy | • Constructed and completed a MLCC materials building at the Yawatabara Plant | ||||||||||||
Industry, | ROIC | 10% or higher | 5.9% | ||||||||||
Innovation and | Continuously expand production capacity to meet | • Constructed new plants to increase MLCC production capacity in China and Malaysia | - | ||||||||||
Infrastructure | increase in demand for electronic components | • Increased MLCC production capacity by 10-15% compared to the previous year | |||||||||||
Create solutions to solve social | • River water level monitoring system: Commenced provision of the services to local governments and participated in | ||||||||||||
- | the one-coin flood sensor demonstration experiment of the Ministry of Land, Infrastructure, Transport and Tourism | - | |||||||||||
issues | • Won the Ministry of Land, Infrastructure, Transport and Tourism's FY2023 Bicycle Use Promotion Achievers Award for | ||||||||||||
the regenerative electric assist system | |||||||||||||
Goal 6: | GHG emissions | • Improved energy-efficiency for production and infrastructural equipment and expanded introduction of renewable | |||||||||||
Clean Water and | |||||||||||||
Strengthen measures to address | (FY2030) | energy | |||||||||||
Sanitation | |||||||||||||
*Absolute amount, | 42% reduction | 18.3% reduction | • Increased information disclosure in line with TCFD (Safety & Environmental Report 2023, Integrated Report 2023, | ||||||||||
climate change | |||||||||||||
Goal 12: | compared with | etc.) | p.67 | ||||||||||
FY2020 | • Certified as an A List company, the highest evaluation, by international environmental not-for-profit organization CDP | ||||||||||||
(E) Environment | Responsible | Environmental | |||||||||||
Consumption and | |||||||||||||
Activities | |||||||||||||
Production | |||||||||||||
Use resources effectively and | Goal 13: | Waste | 10% reduction | 12.6% increase | • Reduced waste at production bases through revisions to production methods | ||||||||
Climate Action | |||||||||||||
contribute to create recycling society | Water usage | 10% reduction | 4.5% reduction | • Reduced water consumption at production bases through optimization of facilities that supply water | |||||||||
*Basic unit, compared with FY2020 | |||||||||||||
Incidence rate of | < 0.016 | 0.015 | • Promoted health and safety activities for each of the 5Ms of man, machine, method, material, and measurement | p.77 Social | |||||||||
• Accelerate our efforts with numerical targets to | injuries and illness | based on the medium-term occupational health and safety targets (FY2022 to FY2025) | |||||||||||
Achieve health-oriented manage- | < 0.08 | 0.07 | Activities | ||||||||||
improve our social value | Accident frequency rate | • Verified the risks of all work handling heavy objects, and revised and strengthened measures to reduce the risks | |||||||||||
ment and work style reforms at | Goal 3: | ||||||||||||
• Increased management training, harassment training, etc. | |||||||||||||
safety first workplace | Good Health and | Work engagement | 2.5 or higher | 2.28 | |||||||||
Well-being | • Officially introduced the work-from-home system in normal times | ||||||||||||
Goal 5: | • Promoted initiatives for each of the Focus 5 health indicators of diet, non-smoking, exercise, sleep, and stress | ||||||||||||
Social | (S) Social | Gender Equality | Rate of newly recruited | 30% or higher | 35%* | • Hosted company information sessions and 1-day work experiences for women | |||||||
Value | female graduates | • Participated in recruitment events for female students | p.81 Human | ||||||||||
Goal 8: | • Added a KPI (female manager ratio of 10% or higher by FY2030) | ||||||||||||
Train and develop human resources | Resources Strategy | ||||||||||||
Decent Work and | Female manager | • Newly established the Diversity Development Section (Its systems were strengthened as the Diversity Development | |||||||||||
based on the diversity policy | Economic Growth | ||||||||||||
10% or higher | 4.2%* | Department in FY2023) | |||||||||||
ratio | |||||||||||||
• Implemented diversity training (for the top executives and the management section general managers) | |||||||||||||
(FY2030) | |||||||||||||
• In partnership with labor unions, hosted workshops related to the promotion of women's participation and advance- | |||||||||||||
ment in the workplace | |||||||||||||
• Carried out Evaluation of Board of Directors' Effectiveness using external evaluation organization | p.56 Governance | ||||||||||||
Improve management quality to | • Made lists of laws/regulations and risks by organizational unit, and drafted and implemented mitigation measures | ||||||||||||
Goal 11: | • Regularly held meetings of the Information Security Committee to deliberate on the companywide security policy and | ||||||||||||
support business growth | |||||||||||||
Sustainable Cities | important measures and to share incidents | ||||||||||||
(G) Governance | and Communities | - | - | - | - | • Strengthened information security (including implementation of suspicious email drills, introduction of information | p.63 Compliance | ||||||
Goal 16: | leakage prevention tools, etc.) | ||||||||||||
and Risk | |||||||||||||
Peace, Justice, | • Revised and improved the Group Business Continuity Provisions synchronized with the amendment of the Risk Manage- | ||||||||||||
Management | |||||||||||||
and Strong | |||||||||||||
Establish and evolve BCM for | ment Manual | ||||||||||||
Institutions | |||||||||||||
• As measures to combat COVID-19, in the first half of the year continuously held meetings of the BCP Committee and in the | |||||||||||||
disaster and infectious disease | |||||||||||||
second half of the year when stabilization of the situation was confirmed stopped holding the regular meetings | |||||||||||||
• Started offering a priority telephone for times of disaster at each base inside Japan | |||||||||||||
*As of April 1, 2023
18 | Value Creation Story | Strategies for the Creation of Value | Foundation Underpinning Value Creation | Corporate Data |
Medium-term Management Plan 2025 (FY2021-FY2025)
Trends and Targets of the KPIs
TAIYO YUDEN INTEGRATED REPORT 2023 | 19 |
Economic value indicators
(Billions of yen) | (%) | |||||||||||||||||||||||
500.0 | 25 | |||||||||||||||||||||||
Net sales (left scale) | ||||||||||||||||||||||||
Operating margin (right scale) | ||||||||||||||||||||||||
400.0 | Return on Equity (ROE) (right scale) | 20 | ||||||||||||||||||||||
Return on Invested Capital (ROIC) (right scale) | ||||||||||||||||||||||||
300.0 | 15 | |||||||||||||||||||||||
Net sales | ||||||||||||||||||||||||
¥480.0 billion | ||||||||||||||||||||||||
200.0 | Operating | 10 | ||||||||||||||||||||||
margin | ||||||||||||||||||||||||
15% or higher |
Social value indicators
GHG emissions
Target for FY2030
Reduce absolute amount by 42%
(on a single-year basis (4.2)% equivalent)
(%)
0
−5.2
−18.3
FY | 2020 | 2021 | 2022 |
Waste, Water usage
Target for FY2025 | ||
Reduce by 10% (basic unit) | ||
(on a single-year basis (2.0)% equivalent) | ||
(%) | 12.6 | |
0 | −3.8 | |
−4.5 | |||||||
−17.2 | |||||||
FY | 2020 | 2021 | 2022 | ||||
Waste | Water usage | ||||||
*Change basic unit from sales volume to production volume and retroactively change fiscal 2021 figures
Incidence rate of injuries and illness Accident frequency rate
Targets
Incidence rate <0.016
Accident frequency rate <0.08
- 0.18
0.14 | |||||||||||
0.08 | 0.08 | 0.10 | 0.07 | ||||||||
0.04 | |||||||||||
0.035 | 0.028 | 0.015 | 0.008 | 0.015 | 0.021 | 0.015 | |||||
FY | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | ||||
Accident frequency rate | Incidence rate | ||||||||||
ROE | ||||||||||||||||||||||||||||
15% or higher | ||||||||||||||||||||||||||||
100.0 | ROIC | 5 | ||||||||||||||||||||||||||
10% or higher | ||||||||||||||||||||||||||||
0.0 | 0 | |||||||||||||||||||||||||||
2012 2013 2014 2015 2016 2017 | 2018 2019 2020 2021 2022 | ~ | 2025 (FY) | |||||||||||||||||||||||||
Target | ||||||||||||||||||||||||||||
Medium-term | Medium-term Targets | Medium-term | Medium-term Management Plan 2025 | |||||||||||||||||||||||||
Management Plan | Management Plan | |||||||||||||||||||||||||||
Work engagement
Target
2.5 or higher
2.28
2.27
2.25
FY | 2020 | 2021 | 2022 |
Rate of newly recruited female graduates*
Target
30% or higher
(%) | |||
43 | |||
36 | 38 | ||
35 | |||
33 | |||
29 | 28 | ||
FY 2017 2018 2019 2020 2021 2022 2023
*As of April 1
Female manager ratio*
Target for FY2030
10% or higher
(%)
4.2
3.7 | |||||||
2.5 | 2.4 | ||||||
1.4 | 1.8 | ||||||
1.1 | |||||||
FY | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 |
*As of April 1
Net sales | Net sales | Net sales | [Economic Value] | |
¥250.0 billion | ¥300.0 billion | ¥300.0 billion | Net sales | Operating margin |
Medium-term Management Plan 2025: Progress and Issues
Operating profit | Operating margin | Operating margin | ¥480.0 billion | 15% or higher | |||||
KPIs | ¥20.0 billion | 10% or higher* | 15% or higher* | ROE | ROIC | ||||
ROE | ROE | ROE | 15% or higher | 10% or higher | |||||
8% | 10% or higher | 10% or higher | |||||||
[Social Value] | |||||||||
*Reduced from 13% at the | *Increased from 10% at the | For further information about our KPIs, | |||||||
start of FY2017 | start of FY2019 | please see | |||||||
p.19 Medium-term Management | |||||||||
Plan 2025: Social value indicators | |||||||||
Structural | |||||||||
reforms | |||||||||
Increase number of super-high-end | Increase proportion of sales | ||||||||
accounted for by super-high-end | |||||||||
products | |||||||||
products to more than 50% | |||||||||
Increase proportion of sales | Increase proportion of | Increase proportion of | Increase proportion of sales accounted for by focus markets to 50% | ||||||
accounted for by focus markets to | sales accounted for by focus | sales accounted for by | |||||||
(25% automotive + 25% | IT infrastructure/industrial equipment) | ||||||||
15% | markets to more than 30% | focus markets to 38% | |||||||
Measures | Transform to business model with profitable business structure | Develop solutions to social issues | |||||||
(smiling curves in manufacturing and providing solutions) | |||||||||
Control capital investments | Shift to more aggressive invest- | Increase scale of capital invest- | Continue to strengthen production capacity (five-year total | ||||||
(three-year total of approx. ¥60 | ments (three-year total of approx. | ments (three-year total of approx. | |||||||
of approx. ¥300 billion) | |||||||||
billion) | ¥100 billion) | ¥130 billion) | |||||||
"smart.E" productivity enhancement activities |
Turn ELNA CO., LTD. into a subsidiary
In the medium-term management plan 2025 (FY2021 to FY2025), we defined the automotive market and the IT infra- structure/industrial equipment market-two markets for which stable growth can be anticipated-as "focus markets" and while working to increase sales centered on these markets, we are aiming to enhance corporate value through the combination of economic and social value.
For economic value, we have set KPIs for net sales, operating margin, ROE, and ROIC. For social value, we have set KPIs for GHG emissions, waste volumes, water usage, workplace safety, diversity, etc. We are also advancing a capital investments plan of ¥300.0 billion over the five years from FY2021, the first fiscal year of the plan. We will use this money to strengthen our production capacity in readiness for future increases in demand centered on demand for automobiles and to make more proactive capital investments in environmental measures and IT facilities.
In FY2021 against the backdrop of favorable market conditions we exceeded our final targets for the three KPIs of operating margin, ROE, and ROIC whereas in FY2022 the demand environment for electronic components went into decline and each of the KPIs deteriorated. It is anticipated that the market conditions will gradually recover in FY2023 and we are continuing to carry out business activities for achieving the targets of
the final fiscal year of the medium-term management Plan 2025. The sales composition ratio of the "focus markets" in
FY2022 was 52% as a result of the increased demand in the automotive market and the slowdown in demand in other markets. It is thought that going forward the sales composition ratio will change due to the demand trends in each market, and we will operate well-balanced businesses which can exercise the strengths of TAIYO YUDEN.
Further, of the KPIs concerning social value, we have
achieved our targets for incidence rate of injuries and illness, accident frequency rate, and rate of newly recruited female graduates. Going forward we will aim for continuous achievement of the targets. Regarding the other indicators, waste volumes and water usage deteriorated from the previous fiscal year, while on the other hand GHG emissions, work engage- ment, and the female manager ratio improved. We will continue to work toward achievement of the targets. Concerning GHG emissions, in response to the agreement of the target of 1.5°C in the 26th UN Climate Change Conference of the Parties (COP26), TAIYO YUDEN has also upwardly revised its targets and strengthened its initiatives in FY2022. As an initiative for GHG emissions reduction, the Yawatabara Plant materials building completed in March 2023 has realized significant energy savings and was able to acquire ZEB Ready certification.
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Taiyo Yuden Co. Ltd. published this content on 27 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 November 2023 07:05:09 UTC.