- Sustainability
- Top Message
Top Message
We will strive to improve our corporate value by developing next-generation technologies and products to realize our Aspiration for 2050.
The Tamura Group is focused on achieving the targets of the 13th Medium-term Management Plan in order to realize its long-term vision “Aspiration for 2050.” By aiming to realize a decarbonized society through our business activities, we will not only increase our corporate value but also contribute to resolving various social issues.
Achieving record net sales of 100 billion yen
Business strategy to realize our Aspiration for 2050
Outlook for the Second Year of the 13th Medium-term Management Plan
Expectations for Tamura Group employees
Enhancing and strengthening our governance framework
FY2023 earnings forecast and enhancement of sustainability
Aiming to contribute to society by enhancing corporate value
The Tamura Group is focused on achieving the targets of the 13th Medium-term Management Plan in order to realize its long-term vision “Aspiration for 2050.” By aiming to realize a decarbonized society through our business activities, we will not only increase our corporate value but also contribute to resolving various social issues.
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Declaring its support for the U.N. Global Compact
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Masahiro Asada
Representative Director, President & CEO |
Achieving record net sales of 100 billion yen
In FY2022, the global economy was generally on a recovery trend although unstable conditions continued due to soaring raw material and fuel prices, exchange rate fluctuations, inflation, the decoupling between the U.S. and China, and part procurement issues due to supply chain disruptions.
In the electronics market, automobile production declined due to a shortage of semiconductors, and production of smartphones and PCs declined due to a rebound from stay-at-home demand. Home appliances, including air conditioners, and industrial machinery, including robots, continued to experience firm demand. Business performance increased due to growth in electronic components sales in response to a backlog of orders that had increased due to difficulties in procuring raw materials as well as the effect of the yen depreciation in addition to the promotion of sales price revisions.
As a result, the Group’s consolidated net sales for FY2022 reached a record high of 107.993 billion yen (up 22.3% year-on-year). Operating profit was 4.829 billion yen (up 208.6% year-on-year), and net income was 2.047 billion yen (compared to a net loss of 84 million yen in the previous fiscal year), returning the Company to profit.
There is concern that the global economy will also slowdown in FY2023 due to the progress of inflation and other factors. In addition, since the impact of the decoupling between the U.S. and China has intensified pressure from European and American manufacturers to withdraw from China, forcing us to consider decentralizing our production bases, future conditions are expected to be uncertain.
In the electronics market, automobile production declined due to a shortage of semiconductors, and production of smartphones and PCs declined due to a rebound from stay-at-home demand. Home appliances, including air conditioners, and industrial machinery, including robots, continued to experience firm demand. Business performance increased due to growth in electronic components sales in response to a backlog of orders that had increased due to difficulties in procuring raw materials as well as the effect of the yen depreciation in addition to the promotion of sales price revisions.
As a result, the Group’s consolidated net sales for FY2022 reached a record high of 107.993 billion yen (up 22.3% year-on-year). Operating profit was 4.829 billion yen (up 208.6% year-on-year), and net income was 2.047 billion yen (compared to a net loss of 84 million yen in the previous fiscal year), returning the Company to profit.
There is concern that the global economy will also slowdown in FY2023 due to the progress of inflation and other factors. In addition, since the impact of the decoupling between the U.S. and China has intensified pressure from European and American manufacturers to withdraw from China, forcing us to consider decentralizing our production bases, future conditions are expected to be uncertain.
Business strategy to realize our Aspiration for 2050
The Tamura Group’s Aspiration for 2050 is to become “A leading company for realizing a decarbonized society that is highly valued in the global electronics market.”
The key to achieving this goal is business growth in areas that contribute to carbon neutrality, such as power electronics, mobility, and IoT. We aim to realize our Aspiration for 2050 by achieving great results with our with all of our three-year Medium-term Management Plans while balancing our business strategy, which consists of two pillars (growth and efficiency), and sustainability strategy.
However, it is impossible to achieve this vision only with our existing product lines. Therefore, we need to establish new, world-leading technologies by 2030 and develop them to serve as new pillars of our business.
One of the main targets for this is next-generation power semiconductors. We are working on the development of related materials, parts, and products. By developing these products to create new businesses, we aim to make a leap forward toward 2050.
Since we are at the very beginning of that effort right now, it can be said that we are at a very important turning point in our history.
The key to achieving this goal is business growth in areas that contribute to carbon neutrality, such as power electronics, mobility, and IoT. We aim to realize our Aspiration for 2050 by achieving great results with our with all of our three-year Medium-term Management Plans while balancing our business strategy, which consists of two pillars (growth and efficiency), and sustainability strategy.
However, it is impossible to achieve this vision only with our existing product lines. Therefore, we need to establish new, world-leading technologies by 2030 and develop them to serve as new pillars of our business.
One of the main targets for this is next-generation power semiconductors. We are working on the development of related materials, parts, and products. By developing these products to create new businesses, we aim to make a leap forward toward 2050.
Since we are at the very beginning of that effort right now, it can be said that we are at a very important turning point in our history.
Outlook for the Second Year of the 13th Medium-term Management Plan
The slogan for the 13th Medium-term Management Plan is “Energize the Future 100,” which is an initiative that we are focusing on. These words express our determination to evolve into a more powerful Tamura Group and to create a strong and wonderful future for society as the first step toward the 100th anniversary of our founding and, in the distant future, the realization of our “Aspiration for 2050.”
In FY2022, the first year of the Medium-term Management Plan, net sales exceeded 100 billion yen, a level which we could not achieve until now, partly due to the depreciation of the yen.
In FY2023, the second year of the plan, demand in Electronic Components in the Electronic Components business has been sluggish due to an increase in inventory adjustments by customers while order backlogs still remain. In addition, the tight supply and demand for semiconductors is also affecting the production of unit products used to drive semiconductors. Although these conditions will continue in the first half of the period, we expect a recovery from the second half of the period and beyond. Therefore, it is important for the Company to quickly grasp changes in demand and prepare a production system to respond to those changes.
Although the Electronic Chemicals/FA Systems business has had a difficult start due to the sluggish smartphone-related market and weak demand in the Chinese market, demand is expected to recover gradually. As the challenge is to strengthen the development of new high value-added products, we are currently working on the development of solder paste for next-generation semiconductors. We aim to launch this product during the period of the next Medium-term Management Plan. If successful, our Electronic Chemicals/FA Systems business will evolve to the next stage.
In the Information Equipment Business, we have recently launched the NTX series next-generation audio mixing consoles. We are the only Japanese manufacturer of a full IP audio mixing console, and expect sales to expand, especially among broadcasters.
The Group will continue to implement various measures in FY2023 with the aim of achieving performance targets for FY2024, the final year of the 13th Medium-term Management Plan and the year marking the 100th anniversary of our founding.
In FY2022, the first year of the Medium-term Management Plan, net sales exceeded 100 billion yen, a level which we could not achieve until now, partly due to the depreciation of the yen.
In FY2023, the second year of the plan, demand in Electronic Components in the Electronic Components business has been sluggish due to an increase in inventory adjustments by customers while order backlogs still remain. In addition, the tight supply and demand for semiconductors is also affecting the production of unit products used to drive semiconductors. Although these conditions will continue in the first half of the period, we expect a recovery from the second half of the period and beyond. Therefore, it is important for the Company to quickly grasp changes in demand and prepare a production system to respond to those changes.
Although the Electronic Chemicals/FA Systems business has had a difficult start due to the sluggish smartphone-related market and weak demand in the Chinese market, demand is expected to recover gradually. As the challenge is to strengthen the development of new high value-added products, we are currently working on the development of solder paste for next-generation semiconductors. We aim to launch this product during the period of the next Medium-term Management Plan. If successful, our Electronic Chemicals/FA Systems business will evolve to the next stage.
In the Information Equipment Business, we have recently launched the NTX series next-generation audio mixing consoles. We are the only Japanese manufacturer of a full IP audio mixing console, and expect sales to expand, especially among broadcasters.
The Group will continue to implement various measures in FY2023 with the aim of achieving performance targets for FY2024, the final year of the 13th Medium-term Management Plan and the year marking the 100th anniversary of our founding.
Expectations for Tamura Group employees
The strength of Tamura Group employees lies in their skills cultivated over the past 100 years and spirit to never give up on achieving their goals. On the other hand, they are not so sensitive to changes in the surrounding environment, so they tend to wait for instructions from their superiors and their seniors.
Therefore, in order to actively increase communication where employees in lower positions convey their ideas to those in higher positions rather than having only “top-down” style communications, I am asking for leaders and managers to utilize various opportunities, such as town hall meetings, where they can talk directly with employees so that they can change their approach to communicating with them.
In addition, I expect all employees to “challenge themselves without fear of change,” first changing their own team and then the Company as a whole. We will actively recruit experienced personnel and revitalize the organization with talented personnel who have gained experience outside the Company, thereby promoting corporate culture reform.
For securing diversity in human resources, we are working to increase the ratios of females, non-Japanese, and mid-career hires in managerial positions. With regard to female managers, we will increase the ratio of female employees to start with and promote them to managerial positions in line with the trend of promoting the participation of women in the workplace, aiming to increase the ratio of female managers to 10% by the end of FY2024. We are also increasing the number of our female outside directors. With regard to the ratio of non-Japanese managers, we have appointed two non-Japanese as executive officers, and will actively promote the appointment of non-Japanese employees to managerial positions.
Furthermore, as part of job satisfaction reform that I am personally leading, we will promote initiatives to improve employee engagement with the aim of becoming a company that people admire and a company where people gather. In particular, we will continue to focus on various measures to instill “psychological stability,” which is the foundation for the development of job satisfaction. In addition, to the survey that we have been conducting in Japan, we will conduct an employee engagement survey on a global basis for the first time, and will promote initiatives to improve engagement at all Tamura Group sites, including overseas sites.
In order to realize job satisfaction reform, as President, I expect three things from employees. The first is “two-way communication,” which transcends age and position so that we can understand each other’s opinions and grasp a sense of the time to create an organization that is resistant to changes in the business environment. The second is to have “healthy ambitions.” I want employees to be willing to take on new challenges and to do what they believe is important and what they desire, even if it means sometimes clashing their superiors. The third is to “set high-level goals.” Through hard work over time and daily study, employees change themselves. By always maintaining an awareness of these three things, I believe that diverse human resources will be able to find job satisfaction and will be a major force in opening up a new future for the Company.
Therefore, in order to actively increase communication where employees in lower positions convey their ideas to those in higher positions rather than having only “top-down” style communications, I am asking for leaders and managers to utilize various opportunities, such as town hall meetings, where they can talk directly with employees so that they can change their approach to communicating with them.
In addition, I expect all employees to “challenge themselves without fear of change,” first changing their own team and then the Company as a whole. We will actively recruit experienced personnel and revitalize the organization with talented personnel who have gained experience outside the Company, thereby promoting corporate culture reform.
For securing diversity in human resources, we are working to increase the ratios of females, non-Japanese, and mid-career hires in managerial positions. With regard to female managers, we will increase the ratio of female employees to start with and promote them to managerial positions in line with the trend of promoting the participation of women in the workplace, aiming to increase the ratio of female managers to 10% by the end of FY2024. We are also increasing the number of our female outside directors. With regard to the ratio of non-Japanese managers, we have appointed two non-Japanese as executive officers, and will actively promote the appointment of non-Japanese employees to managerial positions.
Furthermore, as part of job satisfaction reform that I am personally leading, we will promote initiatives to improve employee engagement with the aim of becoming a company that people admire and a company where people gather. In particular, we will continue to focus on various measures to instill “psychological stability,” which is the foundation for the development of job satisfaction. In addition, to the survey that we have been conducting in Japan, we will conduct an employee engagement survey on a global basis for the first time, and will promote initiatives to improve engagement at all Tamura Group sites, including overseas sites.
In order to realize job satisfaction reform, as President, I expect three things from employees. The first is “two-way communication,” which transcends age and position so that we can understand each other’s opinions and grasp a sense of the time to create an organization that is resistant to changes in the business environment. The second is to have “healthy ambitions.” I want employees to be willing to take on new challenges and to do what they believe is important and what they desire, even if it means sometimes clashing their superiors. The third is to “set high-level goals.” Through hard work over time and daily study, employees change themselves. By always maintaining an awareness of these three things, I believe that diverse human resources will be able to find job satisfaction and will be a major force in opening up a new future for the Company.
Enhancing and strengthening our governance framework
Our basic policy of the Group's corporate governance is to maximize corporate value from the perspective of shareholders by emphasizing management efficiency and transparency through compliance management based on high corporate ethics as entrusted by shareholders. We place particular importance on risk management and internal control, and are currently conducting risk assessments to establish a company-wide and systematic risk management system.
In June 2023, Tamura Corporation transitioned from a company with an Audit & Supervisory Board to a company with an Audit & Supervisory Committee. The purpose of the transition is to strengthen the supervisory function of the Board of Directors and to achieve more transparent corporate governance by having directors with voting rights on the Board of Directors become Audit & Supervisory Committee members. Although the Company has always been progressive in its approach, we decided to further strengthen our governance structure as we approach our 100th anniversary.
We also introduced a CXO system. Until now, the Company has been split into separate business segments, so we have strengthened our cross-sectional business promotion by implementing our “One Tamura” strategy. The purpose of the CXO system is to develop this further and to enable the Company to work in a unified manner and respond flexibly to the drastic changes of the times.
I want to see the Company build a robust governance structure where the Executive Officer Committee, which is comprised of the heads of divisions involved in business execution, and the Board of Directors are in proper contact with each other and be mutually enhanced through execution and supervision.
In June 2023, Tamura Corporation transitioned from a company with an Audit & Supervisory Board to a company with an Audit & Supervisory Committee. The purpose of the transition is to strengthen the supervisory function of the Board of Directors and to achieve more transparent corporate governance by having directors with voting rights on the Board of Directors become Audit & Supervisory Committee members. Although the Company has always been progressive in its approach, we decided to further strengthen our governance structure as we approach our 100th anniversary.
We also introduced a CXO system. Until now, the Company has been split into separate business segments, so we have strengthened our cross-sectional business promotion by implementing our “One Tamura” strategy. The purpose of the CXO system is to develop this further and to enable the Company to work in a unified manner and respond flexibly to the drastic changes of the times.
I want to see the Company build a robust governance structure where the Executive Officer Committee, which is comprised of the heads of divisions involved in business execution, and the Board of Directors are in proper contact with each other and be mutually enhanced through execution and supervision.
FY2023 earnings forecast and enhancement of sustainability
Despite a temporary slowdown due to the deterioration in economic conditions in FY2023, we expect solid demand to continue in the electronics market due to the increasing needs related to EVs, industrial machinery automation, clean energy, and energy saving. However, the FY2023 consolidated earnings forecast is below the original targets set for the second year of the Medium-term Management Plan, with net sales of 108 billion yen and operating income of 4.6 billion yen.
In response to this difficult situation, the entire Group is working to improve sales and profitability, aiming to achieve FY2024 target, the final year of the plan and the year marking the 100th anniversary of its founding.
With regard to our sustainability strategy, we are implementing measures centered on the materiality defined in the 13th Medium-term Management Plan, including the review of risk management mentioned above. We also reviewed the Tamura Group Code of Conduct, which is the foundation for implementing the Tamura Group Mission, part of the Corporate Philosophy of the Tamura Group. Although the Tamura Group Code of Conduct was established in 2007, it was revised to comply with international standards to be in line with the changing times. We will work to ensure that all Group employees are familiar with it.
With regard to the environment, we worked to further expand the lineup of products that contribute to sustainability and to reduce greenhouse gas emissions, achieving a renewable energy usage rate of 100% at our business sites in Japan. In June 2022, the Company declared its support for the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). Recognizing that climate change can be a risk and opportunity for corporate management, we have disclosed information based on the TCFD recommendations.
In response to this difficult situation, the entire Group is working to improve sales and profitability, aiming to achieve FY2024 target, the final year of the plan and the year marking the 100th anniversary of its founding.
With regard to our sustainability strategy, we are implementing measures centered on the materiality defined in the 13th Medium-term Management Plan, including the review of risk management mentioned above. We also reviewed the Tamura Group Code of Conduct, which is the foundation for implementing the Tamura Group Mission, part of the Corporate Philosophy of the Tamura Group. Although the Tamura Group Code of Conduct was established in 2007, it was revised to comply with international standards to be in line with the changing times. We will work to ensure that all Group employees are familiar with it.
With regard to the environment, we worked to further expand the lineup of products that contribute to sustainability and to reduce greenhouse gas emissions, achieving a renewable energy usage rate of 100% at our business sites in Japan. In June 2022, the Company declared its support for the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). Recognizing that climate change can be a risk and opportunity for corporate management, we have disclosed information based on the TCFD recommendations.
Aiming to contribute to society by enhancing corporate value
The Tamura Group has set Aspiration for 2050 as the final goal and aims to achieve this goal through a series of three-year Medium-term Management Plans, with 2024, the year marking the 100th anniversary of our founding, and 2030, the target year of the SDGs, as milestones.
We have designated the two years from January 2024 to December 2025 as our 100th anniversary period and are planning various events to express our gratitude for the support of our stakeholders over the years, such as making a compilation of our history and exhibitions for customers.
Looking beyond our 100th anniversary, the Group will continue to contribute to global society by promoting initiatives to enhance not only its own corporate value but also the value of society as a whole. I would like to ask all of our stakeholders for their continued understanding and support.
We have designated the two years from January 2024 to December 2025 as our 100th anniversary period and are planning various events to express our gratitude for the support of our stakeholders over the years, such as making a compilation of our history and exhibitions for customers.
Looking beyond our 100th anniversary, the Group will continue to contribute to global society by promoting initiatives to enhance not only its own corporate value but also the value of society as a whole. I would like to ask all of our stakeholders for their continued understanding and support.
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