Aiming to realize healthy growth accompanied by profit, we are devoting ourselves to management that focuses on the environment, society, and governance.
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.
In FY2017, the Company achieved a record high in operating profits for the second straight year.
During FY2017, which was the second year of the mid-term management plan “Biltrite Tamura GROWING”, the Company’s three core business sectors all increased their sales and the consolidated operating profits reached a record high for the second straight year. As the Company’s accounts are still developing favorably, the annual dividend, which comprises interim and term-end dividends, has been decided to be 9 yen per share, which is the same as last year. We will continue to work on various business strategies toward further growth, aiming at realizing an annual dividend of 10 yen in FY2018, the final year of the mid-term management plan.
In addition to the steady growth in the sales of automotive solder paste/solder resist and the reflow system in the electronic chemical component implementation business, this increase in profit was also attributable to a sharp rise in the sales of solder resists for flexible PCBs used in smartphones during the second half of the year.
Acceleration of the “Local development & local approval” system on a global scale and reinforcement of marketing power beyond divisional boundaries
Last year, as the priority issues for FY2017, I announced the policies of “Acceleration of the local development & local approval system” and “Reinforcement of marketing led by the Marketing and Development Management Division.”
In efforts toward the optimization of global operation, with regard to business deployment in Asia, the production of some products in the electronic chemicals business sector and in the electronic parts business sector is to be shifted from China to Thailand and from China to Myanmar and Bangladesh, respectively. For this purpose, efforts to reinforce production capability as well as locally recruit supervisors are now underway. We are endeavoring to shift our involvement in China from simply a production base to a development base for the Company. Therefore, our efforts are now being made to develop human resources for R&D and market development and to establish the “Local development & local approval” system. With regard to business deployment in Europe, in order to promote sales activities in European countries, we will set up a new base for the electronic chemical business sector in Germany and establish an integrated system for development, production, and sales.
Furthermore, the Marketing and Development Management Division that was established two years ago is now working on supporting the development of new products through trial and error while receiving experts’ advice on the market and competitors’ situations. By correctly identifying what is unavailable in the market today and what the market really demands, we will continue our endeavors to raise the success rate of new product development.
Assuming social responsibility as a global enterprise by working on solving various world problems
The Company was among the first electronic parts manufacturers that signed the UN Global Compact and has been reflecting and will continue to reflect the SDGs (Sustainable Development Goals adopted by the United Nations in 2015) in its corporate strategy.
While the Company has been promoting its CSR management, which is aimed at fulfilling the Company’s social responsibility and the resolution of various social problems, disseminating CSR awareness among the overseas affiliated companies has been an issue that must be addressed. In FY2017, with the objective of disseminating CSR awareness among all employees, efforts were made to translate the teaching materials into English and Chinese and to emphasize compliance education given in the local language. We consider that a long succession of such down-to-earth activities is important for the dissemination of CSR awareness.
Furthermore, to promote “Local development & local approval” on a global scale, product quality must also be satisfied in a self-contained manner. We are working to raise the level of quality awareness of local employees to be the same as that of the employees in Japan. As a consequence, products whose quality control is self-contained at each overseas base are expected to reach such a level that “Tamura products are consistent in quality wherever they are produced”.
In FY2017, effectiveness of environmental investment became tangible and sales of “Premier Eco-design Products” were firm
Among the 17 SDGs, we especially focus attention on “Goal 7: Affordable and Clean Energy”, “Goal 12: Responsible Consumption and Production”, and “Goal 13: Climate Action” as the fields in which the Company should contribute.
In the past several years, reducing electric consumption has been a major issue in environmental activity. In FY2017, under a strategy to proactively carry out environmental investment in addition to the conventional energy-saving activities, we updated our air-conditioning systems and facilitated the “visualization” of electric power consumption. As a result, we have succeeded in achieving the reduction target. Furthermore, Sakado Factory (currently under reconstruction) has obtained the “Net Zero Energy Building (ZEB)” certification. Further effects of environmental investment are expected to emerge.
With regard to the expanding sales of Premier Eco-design Products, the products for eco-cars have continued to be firm and the actual sales figure reached 11%, exceeding the target. Another new promising field is that of “super luminosity LEDs (Power LEDs)”. Because of technological difficulties, conversion to LEDs has not been facilitated in applications requiring high power, such as large lighthouses and spotlights. However, the Company’s technological competence has been collected for productization, and verification tests were begun at Kushirosaki Lighthouse in February this year. Conversion to LEDs in this field can contribute to solving multiple social problems by realizing a large amount of energy-saving, in view of the large power requirement there, through the reduction of waste and risks as a result of reduced replacement frequency, for example. We are proud that we can contribute to the achievement of the SDGs.
Welcoming a bright centennial anniversary as a company with sound and prosperous growth
Regarding the Company’s governance, with the aim of further securing diversity in Executive Management and viewpoints of third parties, the number of outside board members was increased from two to three, including the Company’s first female officer. In addition to the above, efforts are being made to hold “Small Meetings” to facilitate proactive disclosure of IR information.
The external evaluation of the Company’s CSR management has also been improved. In the past, our rankings in the Nikkei Environmental Management Survey and in the Toyo Keizai CSR ranking, which are well-known indicators for CSR activity, were nothing to boast about. However, as a result of efforts to disseminate CSR awareness and to promote various measures, our order in the ranking has risen sharply.
Because of the strategies that have gotten on the right track in both financial and nonfinancial aspects, we now strongly feel that we will be able, in 2024, which is only six years away, to welcome a bright centennial anniversary as a company that has achieved sound and prosperous growth. We will continue to make efforts to promote quality and sound management, aiming to become the “Only One” company to be truly needed in society.