2025 Mid-Term Business Plan
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2025 Mid-Term Business Plan Announcement Presentation Slides and Movie
Concepts in formulating 2025 Mid-term Business Plan
Shift to CSV management. Make company-wide efforts to fulfill the aspects of materiality identified from the current issues and future social needs.
1. Toyota Boshoku Group’s Vision
Looking into the future, we will create tomorrow’s automobile interior spaces that will inspire our customers the world over.
2. Our desired status for 2030
To become a sustainable, leading global company by enhancing corporate value (Creating new value as an Interior Space Creator)
3. Toyota Boshoku Group’s Materiality
Identify aspects of the Toyota Boshoku Group’s materiality to contribute to realization of sustainable society
⇒ All company members recognize SDGs and work to contribute to society through business activities
Toyota Boshoku Group’s Materiality
4. Concept for formulating 2025 Mid-term Business Plan
Set targets that will help enhance vitality of employees and that can be challenged by all members. And for further leap, formulate the mid-term business plan based on the Toyota Boshoku Group’s materiality.
As an interior system supplier, become a company that serves as “Home”* and secures competitiveness that can surpass global suppliers
- “Home” means a business or region that is capable of creating added values on a Genchi-Genbutsu (go, see & study) basis and has competitive advantage compared to competitors
Framework of 2025 Mid-term Business Plan
Corporate Value Enhancement Scenario
Expand sales and improve profit margins through leading global proposal capabilities
- Strengthen corporate structure(with the break-even point reduced to below 70%) by reinforcing existing core businesses, and reallocate resources to growth fields
- Differentiate our products based on thorough competitor benchmarking, expand sales to strategic OEMs other than Toyota
- Improve work quality through efforts to win the Deming Prize
- Consolidate the ability to solve social issues through innovation
Responding to the advancement of CASE, we aim to become a company that is needed by the world, by providing solutions for automobile interior spaces
- Maintain earnings from existing core businesses
- Acquire expertise and capabilities necessary to become an Interior Space Creator, and seek efficient ways to introduce technologies, including alliances
- Establish a mobility space solution business model and make achievements
- Implement work reform (digital transformation (DX)) based on thorough systemization to ensure resources
Interior & exterior
(1) Reinforce core businesses and expand sales to new customers
(2) Raise earning power and promote investments in new growth fields
(1) Respond to the advancement of CASE/MaaS
(2) Respond to electrification along with market expansion
(3) Promote new businesses that may serve as our fourth or fifth core businesses
Actions in 2025 Mid-term Business Plan
To fulfill matters of materiality and enhance corporate value, we set four priority actions below.
2025 Mid-Term Business Plan
|FY2026 management target|
|Revenue (100 million yen)||16,000＋α|
|Operating profit (100 million yen)||1,000＋α|
|Operating profit ratio||6～7%|
|ROE||10% or higher|
|Equity ratio||Around 40%|
|Net asset (100 million yen)||4,000|
|Dividend payout ratio||Around 30%|
|Capital investment (100 million yen)||FY2022–2026 total
|R&D expenses (100 million yen)||(FY2022–2026 total)
We measure social value through the ESG KPIs, which we established in December 2021. Based on the ESG KPIs, we will meet the expectations of our stakeholders by realizing our materiality and enhancing our corporate value.
Business Portfolio Policy
The Toyota Boshoku group sets our Vision, which describes the company we aim to become by considering the Principles of Toyoda, which bring together the ideas of the founder Sakichi Toyoda, and our Corporate Philosophy, which was established based on the it. This Vision advocates, “looking into the future, we will create tomorrow’s automobile interior spaces that will inspire our customers the world over.”
We defined the Toyota Boshoku group’s materiality, the identification of important issues to be resolved through our business operations from among a variety of social issues and the approach we adopt to resolve them with the goal of enhancing corporate value.
Furthermore, 2025 Mid-term Business Plan announced in fiscal year 2021 was formulated based on our materiality and we have defined our 2025 target as being 'As an interior system supplier, become a company that serves as “Home” and secures competitiveness that can surpass global suppliers.' In this plan, we set Corporate Value Enhancement Scenario for 2025 and 2030, and Business strategies by business and region, and have drawn up Priority Actions to achieve them.
We are looking to maximize cash flow through enhancement of revenue, by expanding our business fields such as expanding sales of existing core products and acquiring new OEMs, and through improvements in manufacturing productivity. We aim to achieve the goals of our Mid-Term Business Plan through strategic allocation of the management resources gained from MONOZUKURI.
We have set FY2026 management target and aim to realize revenue of 1.6 trillion yen plus alpha, operating profit of 100 billion yen plus alpha (an operating profit ratio of 6–7%), and ROE of 10 % or higher. With regard to returns to shareholders, we continue to steadily increase profits and to maintain long-term dividend stability with a target dividend payout ratio of around 30% as well as invest in sustainable growth.
In order to manage business risks, we have adopted the business evaluation metric with an awareness of capital costs (IRRs that take into account the cost of capital by country). This allows us to objectively monitor business feasibility and its result will be reflected on discussion for formulation of action plans and examination of business continuity.
We will continue strategic allocation of the management resources to achieve FY2026 management target which is the sales composition ratios of seat business at 70%, interior & exterior business at 20%, and unit components business at 10% and to achieve the sales composition ratios of the core businesses at 95% and new businesses at 5%.
- As part of our “Home & Away” strategy, “Home” means capable of creating added value on a Genchi-Genbutsu (go, see & study) basis and have competitive advantage compared to competitors. In contrast with this, “Away” refers to businesses or regions in which other companies have more advantages than we do in terms of expertise.