Top Management Commitment

Upholding the spirit of our founder, who wanted to “supply customers with the world's best products,” we strive to evolve into a corporate group with a 100-year history
--- Record-high profits achieved in our 90th year ---


Naoki Tamura
President
Tamura Corporation

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.


Sales expansion and increased profitability achieved in all three business segments


In the economic environment of FY2014 where the U.S. economy made solid progress, China and other developing countries continued their economic growth, and the Japanese economy showed moderate recovery, the Tamura Group focused on creating new products with high added value and on expanding sales in target markets based on the medium-term management plan “Biltrite Tamura,” whose primary objective was to enhance profitability. Meanwhile, in business segments having a high overseas production ratio and seeing a decline in profits due to the current yen depreciation, we made extra effort to secure profits by responding to customers to the best of our abilities, reducing cost, and improving management.

As a result, sales expansion and increased profitability were achieved in all the three business segments, and consolidated performance resulted in a substantial increase in both sales and profits. As regards business performance for the consolidated financial year, the Group showed sales of 86,248 million Japanese yen, an operating profit of 4,029 million Japanese yen, and a recurring profit of 4,098 million Japanese yen, whereas the current term net income has exceeded the record achieved in the fiscal year ended in March 1985, marking 3,106 million Japanese yen.

Looking at the performance by region, surplus was maintained in Japan despite rising costs due to the depreciation of the yen, and profits recorded increases in Asia, Europe, and North and South America.

By business segment, the electronic components business showed a substantial profit increase because of increased sales mainly of reactors and transformers that resulted from the growth in the home electronics/housing business, such as air conditioners, and of industrial machines, such as robots, coupled with improvement in productivity and increased sales of high-value-added products. In the electronic chemicals and soldering systems business, sales of solder resists for smartphones, a strategic product, remained strong, and sales and profits of the soldering system also increased. Due to the recovery of demand from the broadcast equipment market, the information equipment related business emerged from its stagnant state that persisted up to the preceding year, and a large number of digital audio mixing consoles, the “NT series,” were delivered to key and local broadcasting stations, resulting in improved earnings and recovery of trade surplus.

Medium-term management plan "Biltrite Tamura" Achievements made in two years and future challenges


It can be said that the increase in income and profits achieved in FY2014 was brought about by improved management practices through the three major efforts specified in the medium-term management plan “Biltrite Tamura,” including “creating sound management,” “establishing the best global operation system,” and “manufacturing excellent products.”

Regarding “creating sound management,” a steady improvement in profits has been evident in the last two years, as the figures show. However, the key issue of improving operating margin still does not meet the initial target, partly due to the depreciation of the yen. We will further fortify our efforts in this regard.

Regarding “establishing the best global operation system,” there is a high possibility that our target of increasing the overseas ratio of fixed cost to 50% will be attained. Efforts will be continued to reinforce sales in the US and European markets with an eye to increasing orders from non-Japanese affiliated customers, while pushing production transfer from China to Myanmar and Bangladesh based on a structural review of the entire Asian region.

Regarding “manufacturing excellent products,” efforts for manufacturing products with high originality have been continued. Those efforts include the development of a YAG single-crystal phosphor that is suitable for a high-intensity and high-power white light source, the mass production of a vehicle-mounted reactor with internally developed core material, the development of a joining material that is optimal for joining minute parts for wearable products, and increasing color variations of solder resists that can reflect a substrate surface on a design. We will continue to work hard in order to contribute to society through Tamura products that are born and developed based on originality.

Toward "establishing the best global operation system" Our efforts to develop human resources in Japan and other countries


The importance of supply chain management, including that overseas, has been further stressed in the Tamura Group. Needless to say, as the development of human resources is critical to the success of this idea, strategic measures were implemented in Japan and other countries in FY2014. In Japan, three kinds of training programs were held, including overseas training of new employees, fast-track training of core employees as global executive candidates, and training of management-level employees for the development of next-generation global managers. Outside Japan, training programs to educate management philosophy were conducted in China, Hong Kong, Singapore, Malaysia, Thailand, Vietnam, and Bangladesh, and managers' training programs were carried out in China and Malaysia. Through the implementation of this Group-wide stratified training on a global scale, the development of local employees in each country was promoted and a sense of unity was nurtured across the entire Group.

As for the flood that hit the east coast of Malaysia in December 2014, our local subsidiary voluntarily supplied relief goods and performed relief activities. For the purpose of contributing to society, we will continue promoting globalization and localization as an enterprise with a presence in overseas countries.

Upholding the spirit of our founder, who wanted to "supply customers with the world's best products," we strive to evolve into a corporate group with a 100-year history


FY2014 marked the 90th anniversary of Tamura. In order to commemorate the 90-year history and express our sincere gratitude to our customers, a private exhibit entitled “Tamura Fair - 90th Anniversary Appreciation and the Future Beyond -” was held at the Tokyo International Forum for two days, the 5th and 6th of February 2015. Products and technologies to explain Tamura's past and those to visualize the future were displayed. This fair was attended by approximately 1,400 guests from home and abroad, and helped strengthen our resolve to commit ourselves to our duties toward becoming a corporate group with a 100-year history, upholding the Company's founding spirit of “Supply customers with the world's best products.”

Tamura Corporation will continue to exert all-out efforts and tackle challenges to advance as a company that is trusted by everyone.

July 2015

Naoki Tamura
President

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