Corporate Information

2020 Business Plan

The Toyota Boshoku group devised the five-year 2020 Mid-term Business Implementation Plan in 2016, and has pressed forward with action in line with the plan's three pillars of ‘Corporate Growth While Fulfilling Our Responsibility in Harmony with Society’, ‘Sustainable Growth’, and ‘Enhance Our Corporate Value on a Mid-to-Long-Term Basis’. Structure strengthening has advanced through the work made heretofore, and favorable results are appearing in terms of finance as well, but issues still remain. Fiscal 2021 is the final fiscal year of the 2020 business plan. We shall be verifying the progress of the measures that address the planned goals and the results achieved so far, and link this to the 2025 mid-term business plan.

2020 Mid-term Business Implementation Plan

Items of the 2020 Mid-term Business Implementation Plan Progress and Results of Effort to Date
Corporate growth while fulfilling our responsibility in harmony with society CSR Contribute to enhancing social value through activities that meet the expectations of every stakeholder
  • Management Advisory Council for strengthening corporate governance
  • Formulate materiality for contributing to a sustainable society
Environment
  • Promotion of the 2020 Environmental Action Plan with focus on the 2050 Environmental Vision
Sustainable growth Strengthen competitiveness Develop new technologies and new products towards 2030 Comfort
Safety
Environment
  • Promotion of technical development to control suitable status for passengers by stimulation of five senses + air quality
  • Proposal, as the MOOX*1, of space planning oriented towards MaaS spaces and smart cities
  • Creation of the seeds of new business, including plant-growing and animal-rearing methods using tidal forces
  • Move to full-fledged production of motor cores for hybrid vehicles
  • Establishment of a pilot line for production of high-output lithium-ion batteries
Manufacturing Innovations towards 2030 Affection
Trust
Reassurance
  • Implementation of equipment operation monitors for predictive maintenance, with real-time visualisation of production information
  • Establishment of the MONOZUKURI Innovation Center to serve as a hub for global cooperation involving technology and people
  • Advancement of measures to reduce personnel, including adoption of automatic inspection of seat exterior appearance
Further enhance our fundamental capabilities in manufacturing Strengthen capabilities
  • 26% reduction in development man-hours through development of human resources using skill maps
  • Strengthened cooperation with research and development centers in each region
StStrengthen production and capabilities
  • Continued promotion of process standardisation oriented towards improving quality and productivity
  • Promotion of plant autonomy with analysis of strengths and weaknesses in daily plant control for safety, quality, production, etc.
Strengthen management foundation Strengthen profit structure Evolve system supplier system
  • Revision of interior system supplier's setup and programmes, and trial launch of model projects
Rebuild business structure in Japan
  • Integration of seat-frame operations and streamlining of production and logistics
  • Strengthened asset-management capabilities through visualisation of the consolidated profit structure
  • Promotion of efficient utilisation through sharing of business resources
Build a resilient business structure
  • Revision to a robust business continuity plan
  • Reorganisation of production and logistics to enable flexible response to changes in demand
  • Identification of anticipated risks with respect to fluctuations in currency exchange rates and the financial environment, and strengthened response actions
Create a global management foundation Develop a management information infrastructure
  • Enhancement of the management structure and stepwise adoption of an ERP*2 system
Create a vibrant work environment where diverse people can fully demonstrate their abilities
  • Promotion of use of global human resources and of establishment of efficient organisations through control of personnel numbers
  • Realisation of flexible and efficient ways of working through such measures as adopting mobile, Skype, Teams, and teleworking

*1 MOOX : A combination of the words Mobile & Box denoting a private space that can be utilised freely while in motion
*2 Enterprise Resource Planning : A cross-orginisational core system that manages company-wide information in a unified manner and aim to make effective use of management resources

2020 Business Plan

Basic thought

  • Aim to accomplish Mid-term Business Implementation Plan coping with changes in market trends
  • Steadily realize financial benefits from our efforts by improving management capabilities

Operating profit target

2020 Financial commitment

2025 Target

Business Target

We devoted effort to structuring a system capable of responding flexibly to changes in demand, and our earning power has improved steadily. We strove to expand sales by accelerating the addition of more dimensions to offer value and the expansion of business fields, and certain results are beginning to appear. However, the impact of the spread of COVID-19 makes for a tough environment in which to reach our 2020 business targets.

Item FY2020 results FY2021 target
Revenue 1,372.6 billion yen 1,400.0 billion yen
Operating profit 47.7 billion yen 70.0 billion yen
Operating profit ratio 3.50% 5.00%
Total equity 321.7 billion yen 400.0 billion yen
Ratio of equity attributable to owners of the parent 37.30% approx. 40%
ROE 8.50% 10% or more
Dividend payout ratio 40.60% approx. 30%
Capital investments 58.7 billion yen (Total:120 billion yen) Total:180 billion yen (FY2019-FY2021)
R&D costs 45.9 billion yen (Total:92.8 billion yen) Total:140 billion yen (FY2019-FY2021)

Fiscal-year Key Issues for FY 2021

We narrowed down to four issues remaining for accomplishing 2020 Mid-term Business Implementation Plan, and made them key issues for fiscal 2021. We will work to accommodate wildly fluctuating demand and secure profits even as we work to prevent the spread of COVID-19, and together with this, accelerate the countermeasures to become an Interior Space Creator as we move towards expanding business fields.

  1. Aim to become an Interior Space Creator leading new value creation
  2. Solidify development, production and supply systems to strengthen MONOZUKURI competitiveness and profitability
  3. Accomplish building resilient management foundations and systems
  4. Improve operational quality of all work performed by activities leading to the Deming Prize

2025 Mid-term Business Plan

Presentation Slides and Movies

Mid-term Business Implementation Plan Progress Report (May, 2020)

Mid-term Business Implementation Plan Progress Report (November, 2019)

Mid-term Business Implementation Plan Progress Report (May, 2019)

Mid-term Business Implementation Plan Progress Report (November, 2018)

2020 Management Plan (May, 2018)

Mid-term Business Implementation Plan Progress Report (November, 2017)

Mid-term Business Implementation Plan Progress Report (May, 2017)

Mid-term Business Implementation Plan Announcement (November, 2016)