Value Creation Story

2030 vision

The TS TECH Group’s Vision Statement—“A company dedicated to realizing people’s potential, a company sincerely appreciated by all”—underpins all of its business operations. By providing the world with attractive products even in the evolving mobility society, we will not only achieve our 2030 Vision but also help to build a more sustainable world. In doing so, we will continue to serve as a reassuring presence for all our stakeholders and be a company sincerely appreciated by all.

Review of the 14th Medium-Term Management Plan

The 14th Medium-Term Management Plan set out a management policy of “Corporate evolution through ESG management,” and during those years we moved forward with efforts to strengthen our corporate structure in various ESG-related areas that support business growth. We made progress on priority measures, but the extremely challenging business environment caused by the pandemic and material supply shortages left outstanding issues in terms of profitability. We will implement the 15th Medium-Term Management Plan to ensure that all remaining challenges are addressed, such as achieving as yet unattained commercial rights targets in new business areas and remedying the downturn in capital efficiency.

Progress on Priority Measures

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◎: Very good 〇: Good △: Average

Measure Evaluation Notable initiatives
Evolution for
business growth
Commercialization of original technologies
  • Acceleration of development of sensing and other technologies that lead to attractive products
    Announcement of next-generation vehicle interior XR Cabin
  • Active incorporation of joint development and other types of open innovation
    Capital and business partnership with Imasen Electric Industrial Co., Ltd.
    Business partnership with ALPS ALPINE CO., LTD. Investment in teTra aviation corp.
  • Application of advanced processing technology in mass production
    Newly established mold manufacturing and technology development bases
Expansion of strategic commercial rights
  • Steady receipt of orders from major customers for target commercial rights through spec proposals that leverage our strengths and enhanced development collaboration
  • Precise selection of target and strategic order development to acquire new customers and new commercial rights
    Although the number of new orders increased, the target for final orders received was not achieved
Optimization of business operations structure
  • Streamlining and increased efficiency through allocation reviews and restructuring of business operations both in Japan and overseas based on reorganization of production
    UK and Hungary: Reorganization of production hubs
    India: Reorganization of automobile and motorcycle businesses
    Mexico: Establishment of trim cover production company
    Poland: Establishment of seat production company
Contribution to a sustainable society
  • Establishment of the Sustainability Committee
  • Identifying material issues and setting KPIs and targets for 2030
  • Stronger global CO2 emissions reduction activities and related management to help achieve a low-carbon society
    Endorsement of TCFD recommendations and disclosure response
  • Enhancing resource management to achieve a circular society
Stronger business
operations structure to
support evolution
Recognition for top quality
  • Enhanced know-how and support from the first production base during global rollout of new models
  • Prevention of defects by strengthening verification in the beginning stages of development
  • Stronger quality control systems at Group and business partner locations
    Impact on income due to quality-related response costs
Strengthening of continuous earnings structure
  • Establishment of a lowest-cost procurement structure by enhancing our global procurement system
  • More efficient administrative and indirect operations through active use of IT
  • Studying and formulating financial strategies aimed at medium- to long-term growth
Maximization of employee and structural efficiency
  • Establishment of a system to promote advancement of diverse human resources
    Introduction of referral and return of former employees recruitment
  • Implementation and utilization of employee engagement survey
    Rating: C
    Aiming to achieve highest rating of AAA
  • Evolution of our evaluation system to accommodate various work styles
  • Review of our training system for next-generation human resource development

Financial Trend

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Financial Transition 1 Financial Transition 2   Financial Transition 3
  Fiscal 2020 results Fiscal 2021 results Fiscal 2022 results Fiscal 2023 results   Fiscal 2024 plan
(Billion yen)
359.6 346.1 349.9 409.2   410
Operating income
(Billion yen)
26.3 26.7 22.9 15.2   20
Operating margin 7.3% 7.7% 6.6% 3.7%   4.9%
ROE 5.9% 7.8% 4.3% 1.8%   3.4%
Average exchange rate [USD] 108.7 106.1 112.4 135.5   130.0
[CNY] 15.6 15.7 17.5 19.8   19.0

Non-Financial Trend

The TS TECH Group measures its ESG quality using an evaluation method based on the Dow Jones Sustainability Indices (DJSI)*1

In the 14th Medium-Term Management Plan, our governance reforms, including becoming “a company with an Audit and Supervisory Committee” structure and enhanced disclosure of non-financial items, were all well received. This meant that we significantly improved our scores in the domains of corporate governance and social reporting. We will continue to move forward with advanced ESG management, which we highlighted as a challenge in the 13th Medium-Term Management Plan (fiscal 2018–2020), as we strive to build an industry-leading corporate structure and deliver sustainable corporate growth.

DJSI Evaluation (Indicated as a percentile ranking within the auto parts industry*2)

Pie chart of DJSI evaluation
							percentile in the auto parts industry
  • A sustainability-related index that evaluates companies’ sustainability from ESG and economic perspectives, published annually by S&P Dow Jones Indices LLC of the United States
  • Indicates the company’s position in the industry, with the highest score being 100
  • New item from fiscal 2021, so no score recorded for the 13th Medium-Term Management Plan

Major Initiatives


  • Endorsement of TCFD recommendations and disclosure response
  • Enhancing environmental management and CDP initiatives


  • Implementation of employee engagement survey
  • Expanded the deployment of Supplier Sustainability Guidelines and the scope of surveys about the guidelines


  • Transition to “a company with an Audit and Supervisory Committee” structure
  • Establishment of the Nomination and Compensation Committee
  • Diversification of the Board of Directors (appointment of female directors, etc.)
  • Establishment of the Sustainability Committee
  • Formulation of material issues and setting of 2030 targets

Outline of the 15th Medium-Term Management Plan

Under the 15th Medium-Term Management Plan, we are first of all focusing on the challenge of recovering profitability as soon as possible, to achieve further growth and deliver on our 2030 Vision. To do this, the plan sets out nine key strategies, comprising growth, regional and functional strategies. We also aim to help to build a sustainable world, as the ESG management initiatives we have been implementing since the 13th Medium-Term Management Plan culminate, and always seek to be a reassuring presence for our stakeholders and “A company sincerely appreciated by all.”

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Financial targets 14th Medium-Term
Management Plan results
15th Medium-Term
Management Plan targets
2030 targets
Revenue (Billion yen) 409.2 480 700
Operating income (Billion yen) 15.2 44 68
Operating margin 3.7% 9.2% 9.7%
ROE 1.8% 8.5% 10.0%
Shareholder returns
Basic policy Implementing sustained, stable returns unaffected by business results
Dividends Stable increase in dividend payments, targeting DOE of 3.5% or more by the end of the 15th Medium-Term Management Plan
Acquisition of treasury stock Flexible share buyback during the term of the 15th Medium-Term Management Plan amounting to cumulative total of 20 billion yen and appropriate retirement of treasury stock
Management policy Realizing ESG management
Priority strategies Notable initiatives
Growth strategies Securing cabin coordination capacity
  • Creating attractive cabin products and technologies
    Active co-creation activities with companies in other industries
    Research on how people spend time inside a vehicle, focusing on next-generation vehicles
  • Enhancing systems and software development capabilities
    Development of electronic control device components such as seat-integrated ECUs
    Training of advanced engineers
Further growth in new businesses
  • Strategic acceptance of orders for target commercial rights
    Securing commercial rights for derivative models that incorporate technologies from existing ordered models
    Securing orders for advanced development on future models by proposing next-generation technologies in advance
  • New customer development
    Enhancing joint efforts between individual regions and the head office, centered on the New Business Management Division
A higher share of major customers’ products
  • Receiving orders for seat trading rights through regional coordination
    Securing commercial rights in regions where no seat orders have yet been received
    Building new partnerships and deploying sales activities leveraging them
  • Growing orders received for parts commercial rights
    Steadily receiving orders for next-generation shared frames
    Enhancing development to receive orders for light-vehicle frames
    Growing orders received through enhancing our competitive strengths in parts
V-shaped recovery in North America
  • Achieving a reformed corporate structure capable of adapting to production fluctuations
    Thorough automation of production line to keep up with irregular production and cost increase pressures
    Strengthening cost competitiveness through optimization of specifications, materials, and processes
Restructuring the China business strategy
  • New initiatives not bound by existing businesses
    Building new partnerships aiming to secure new customers
    Expanding use of local manufacturers to lower costs and reduce procurement risks
Strategic growth in new businesses in Europe
  • Further business expansion with European automakers
    Sales development with Poland as a key station
    New establishment of a trim cover production company with a view to expanding adoption of components
Supply chain restructuring
  • Toward a sustainable supply chain
    Balancing stability and profitability through risk visualization and efforts to promote local procurement
    Working with business partners to reduce supply chain CO2 emissions volume (Scope 3)
Enhancing efforts to develop environmental technologies
  • Evolution of environmental technologies for early commercial use
    Establishment of technologies for product applications for biomass materials and eco-friendly steel materials
    Resource recycling accomplished by selecting materials and designing structures with recycling in mind
Building high efficiency production structures
  • Building a production structure capable of outperforming competitors
    Continuous evolution of production lines through introduction of digital transformation and AI, and automation
    Improvement of production management efficiency through system reviews, etc.
Foundation Human resources strategies/ Financial strategies /Earning a reputation as a quality leader/Promoting and firmly establishing sustainability
Securing cabin coordination capacity

Changes in automobiles brought about through technological innovation will transform the value required of vehicle interiors. In order to seize this business opportunity and translate it into further business growth, it is imperative to be able to coordinate not only seats but the entire cabin, proposing new value to customers and users. We will work to create products and technologies that, put together, can deliver attractive cabins, utilizing both our accumulated proprietary technologies and collaboration with companies in other fields.

Acquisition of cabin coordination function
Targeting further business growth

The TS TECH Group has to date achieved steady business growth, serving as a global partner to Honda Motor Co., Ltd. and its affiliates in the Honda Group. In order to achieve further growth, we aim to achieve our 2030 Vision not by securing a higher share of major customers’ (Honda Group) business but also by ensuring further growth in new businesses, for instance by acquiring new customers and commercial rights outside the Honda Group.

2030 targets

  • Automobile seat share for the Honda Group above 70%
  • New business sales accounting for more than 30% of consolidated revenue
Toward Further Business Growth