Through our products and business, we contribute to resolving social issues and work at fulfilling our social responsibility.
Declaring its support for the U.N. Global Compact
The Tamura Group declares to its stakeholders that it will continue to support the U.N. Global Compact's ten principles in the areas of human rights, labor, the environment, and anti-corruption, and enact a set of core values in those four areas.
Highest past profits achieved, exceeding initial expectation
Significant improvement in soundness of management practices
In FY2016, the first year of the mid-term management plan “Biltrite Tamura GROWING”, we achieved an increased profit that surpassed beginning-of-year forecasts, and business profit as well as current net profit attributable to owners of the parent reached new highs. Although sales showed a decrease of about 5 billion yen compared with the preceding term mainly due to the appreciation of the yen, substantial growth excluding the exchange factor remained at the level of the preceding term. Reflecting the increased profit, the annual dividend that combines interim and term-end dividends paid to shareholders was increased by 2 yen to 9 yen.
The increase in profit was mainly attributable to the electronic parts related business that increased profit by reinforcing high value-added products and shifting the priority market from households to industries. Meanwhile, although the electrochemical component implementation business was able to achieve a certain level of results by proactively expanding its sales in the IoT and in-vehicle markets, it experienced decreased sales and profit due to the appreciation of the yen. Partly because the special demand for security-related equipment had ended, the information equipment related business also showed decreased sales and profit compared to the preceding term.
The Company’s ROE, as against the set goal for the final year of 9%, reached 10% in the first year, indicating improvement in soundness of management practices. The power to resist foreign exchange fluctuations has steadily increased. In FY2017, towards the optimization of our global network, we will continue to expand our strategic products by accelerating our local-based efforts in “Local development & local approval” to carry out product development as well as the acquisition of approval in a speedy manner and by reinforcing marketing under the leadership of the newly established Marketing and Development Management Division.
Aiming to welcome the year 2024, the 100th anniversary of the Company, as a prosperous company maintaining abundant growth
We at the Company value this medium-term management plan as the “stage of growth” towards the 100th anniversary in 2024. As the first in the electronic parts industry to celebrate its 100th anniversary, we will work on maintaining abundant growth under the motto “Drawing a path to abundant growth” so that the Company can celebrate its 100th anniversary in prosperity. In this rapidly-advancing society, by the time the Company reaches its 100th anniversary, some products will be already serving out their roles. However, we would like to develop products full of originality that can offer even greater value to customers than the former products and introduce them to the market. Our passion for pursuing new value in this manner is the source of the Company’s growth and prosperity.
In order to grasp customers’ needs by focusing on the market and develop products strongly demanded by the market, the Company’s R&D has placed priority on operation by each business division. In FY2016, while maintaining this system and carefully observing the trend of the entire electronics-related market as well as competitors’ movements, and further aiming to carry out R&D with a wide perspective, the Company newly established the Marketing and Development Management Division as an independent organization from its business divisions. It functions to check R&D of the business divisions from an objective point of view in cooperation with outside investigation organizations. Through this process that is performed in an equitable and fair manner, we consider that highly reliable R&D responding to true market needs can be accomplished without misjudging the entire market trend.
Contributing to realization of a sustainable society by continuing to supply environmentally minded products
Under the circumstances where climate change is advancing on a global level and every company is required to contribute to a sustainable society, we recognize that supplying environmentally minded products is a Tamura Group’s social responsibility.
For example, a majority of eco-friendly cars, such as hybrid vehicles that contribute to CO2 emission reduction, use a voltage boosting reactor to increase battery voltage. Considering that the demand for eco-friendly cars will continue to rise worldwide, the Company’s subsidiary, Wakayanagi Tamura Corporation (Kurihara City, Miyagi Prefecture), is scheduled to be remodeled into a mass-production plant for in-vehicle electronic parts, thus aiming to expand the Company’s production capacity of in-vehicle reactors by 2.5 times or more in 2024, the centennial year. Among the products that contribute to environmental load reduction, the Company certifies ones that are especially outstanding as “Premier Eco-design Products”. As of FY2016, Premier Eco-design Products account for 21% of all products, markedly exceeding the target of 17%.
The Company’s environmental activities have three major objectives: (1) increasing the percentage sales of eco-design products; (2) reducing substances with environmental load; and (3) reducing power consumption. In FY 2016, the reduction of electric power consumption alone failed to meet the target value and we have taken it as an issue to be addressed. As energy saving activities has been almost fully implemented at worksites, we consider it necessary to develop a company-wide policy to enforce large-scale “green investment”. In the planned reconstruction of Sakado Factory, it is expected to be designed as an energy-saving building based on this policy and has been certified as a “Nearly ZEB”, achieving energy savings of over 75% in the “Net Zero Energy Building (ZEB) verification project”.
Establishing presence in global market by promoting structural reconstruction for fair corporate management
As regards governance as the foundation for CSR management, the Company’s policies in response to the “Corporate Governance Code” were defined in 2015 and all necessary response measures were completed by clearly stating the reasons for election at the time of election of directors in FY2017. Further, the Company has separated compliance promotion function and audit function that used to be held in one division, to delineate the roles of promotion and auditing. Further, by diversifying contacts for the whistle-blowing system and newly setting up independent contact points, the Company has been steadily developing structural reconstruction in order to enhance fair and sound management practices.
In 2016, our society was saddled with labor-management issues, such as long working hours. The Company has worked on correcting long working hours by linking the occupancy management system for security with the attendance management system to grasp the exit hour of each employee. Further, along with business globalization, in order to address various issues regarding personnel affairs in Japan and overseas, we have applied the distinguished personnel system of the head office to overseas operation bases and, at the same time, proactively promoted local employees to managerial posts there. In FY2016, the ratio of local employees in managerial posts of overseas subsidiaries reached approximately 80% and diversification of employment patterns progressed.