TAIYO YUDEN CO., LTD.
INTEGRATED
R E P O R T
2022
Stronger and more socially
aware through
the wonders of science
2 TAIYO YUDEN INTEGRATED REPORT 2022
CONTENTS
4 TAIYO YUDEN's Mission
6 Our Profile
Section 1 | 9 | Mission, Management Philosophy, Vision |
VALUE CREATION | 10 | History of Value Creation |
12 | TAIYO YUDEN's Value Provision | |
STORY | ||
14 | Business Activities that Provide Value | |
16 | Materiality | |
18 | Medium-term Management Plan 2025 (FY2021-FY2025) | |
20 | Financial and Non-financial Highlights | |
22 | Message from the President | |
28 | Message from the Officer in charge of Finance |
Section 2 | 32 | Smart Product Development System |
STRATEGIES FOR THE | 34 | Market Environment and Business Development |
36 | Value Creation Model | |
CREATION OF VALUE | ||
38 | At a Glance | |
40 | Feature 1: Product-driven Advances in Digital Transformation (DX) | |
44 | Feature 2: Solutions to Solve Social Issues |
TAIYO YUDEN INTEGRATED REPORT 2022 | 3 |
On the Publication of the Integrated Report 2022
TAIYO YUDEN began its five-yearmedium-term management plan 2025 in FY2021. This report focuses on our efforts under the plan which aim to enhance our corporate value by increasing both our economic and social value. We have sought to provide easy-to-understand explanations on these so that even first-time readers may understand TAIYO YUD- EN's value creation. On top of this, we have worked to expand the content of the report, working to enhance the quantitative and qualitative information listed on ESG in particular based on feedback we have received through dialogue with our stakeholders.
In preparing the report, the President, the officer in charge of corporate planning, other members of management and each division collaborated to ensure that a proper process was followed. We hope that reading this report will help provide you with a better understanding of the TAIYO YUDEN Group.
We will continue to place value on the dialogue we have with our stakeholders and strive to enhance both our information disclosure and transparency. We appreciate any candid feedback you may have.
October 2022
Katsuya Sase
Director and Senior Executive Operating Officer,
Chief of Management Planning Headquarters
Departments involved in the publication of the Integrated Report 2022 (in alphabetical order)
TAIYO YUDEN CO., LTD.
Accounting Department, General Affairs Department, Human Resources Department, Intellectual Property Department, Legal Department, Management Information System Department, President's Office, Procurement Management Department, Public Relations Department, Research and Development Laboratory, and Sustainability Development Department
46 R&D |
Section 3 | 52 | Roundtable Discussion with the Outside Directors | |
FOUNDATION | -Striving to Further TAIYO YUDEN's Governance in Step with Its Growth | ||
56 | (G)Corporate Governance | ||
UNDERPINNING | |||
62 | Compliance and Risk Management | ||
VALUE CREATION | 64 | Executives | |
66 | Sustainability / (E)Environment Activities | ||
68 | Efforts to Address Climate Change | ||
73 | Efficiently Using Resources and Helping to Build a Recycling-Based Society | ||
74 | (S)Social Activities | ||
76 | Human Resources Strategy | ||
81 | External Evaluation |
Data Section | 82 | 11-year Financial and Non-financial Summary |
84 | Financial Review |
Scope of Report
This report covers (as of March 31, 2022) 32 companies, comprising TAIYO YUDEN, 11 domestic subsidiaries and 21 overseas subsidiaries.
Reference Guidelines
For editing purposes, reference was made to the International Integrated Reporting Framework recommended by the IFRS Foundation and the Guidance for Collaborative Value Creation provided by the Ministry of Economy, Trade and Industry. For ESG-related information, we referred to the Ministry of the Environment's Environmental Reporting Guidelines (2018 version). We also used the GRI Standards as a reference guideline.
Our GRI Standard Table
can be viewed on our website:
https://www.yuden.co.jp/or/company/sustainability/misc/GRI/
Notes
-
In this report, the fiscal year will be displayed as follows. Example: April 1, 2021 to March 31, 2022
FY 2021 or fiscal year ended March 2022 - The figures in this report omit amounts less than hundred million yen and 1 million yen and displays it.
- The English-language version of this report is based on the Japanese-language version. With the exception of the financial statements, all figures presented have been rounded down to the nearest appropriate unit. As a result, there are cases when a presented figure differs slightly from the equivalent figure in the financial statements.
- The contents of this report are correct as of June 29, 2022.
Disclaimer
This report is intended to provide information about the business performance and strategies of the TAIYO YUDEN Group. It is not intended as an inducement to purchase or sell stock in TAIYO YUDEN. Statements in this report that are not historical fact are forward-looking statements based on the current beliefs, estimates and expectations of TAIYO YUDEN Group management. As these beliefs, estimates and expectations are subject to a number of risks, uncertainties and assump- tions, actual results may differ materially. TAIYO YUDEN undertakes no obligation to update any forward-looking statements, and shall in no event be liable for any damages arising out of the use or interpretation of this material. Please refrain from copying or disseminating this material without the prior consent of TAIYO YUDEN.
86 | Consolidated Financial Statements |
94 | ESG Data |
96 | Corporate Data |
97 | Stock Information |
For details on TAIYO YUDEN's financial and non-financial information, please visit our website at:
Investor Relations | Sustainability | |||||||||||
https://www.yuden.co.jp/or/ir/ | https://www.yuden.co.jp/or/company/sustainability/ | |||||||||||
4 TAIYO YUDEN INTEGRATED REPORT 2022
TAIYO YUDEN's Mission
Stronger and more socially aware through
the wonders of science
TAIYO YUDEN's electronic components are critical in the manufacturing of various pieces of electronic equipment. Our products support the evolution of electronics technology that is indispensable for people's safe, secure, comfortable, and convenient lives.
In order to create, advance, and deliver these small but important electronic components to every corner of society, we are seeking to broaden and increase the depth of new knowledge while pursuing the sophistication of our technologies and skills.
Meanwhile, the strengths that we have accumulated throughout our history have generated incidental discoveries and inspirational encounters, which opened the door to unexpected future of innovative solutions and expansion into new areas of scientific advancement.
The foundation of this process is "the wonders of science," which is the source of TAIYO YUDEN's corporate value enhancement.
As a company that continues to grow, we will create greater economic value.
As a company that contributes to the realization of a better society, we will continue to enhance social value.
As a member of society, our constant and enduring aspiration is to fulfill this mission.
TAIYO YUDEN INTEGRATED REPORT 2022 | 5 |
6 TAIYO YUDEN INTEGRATED REPORT 2022
Our Profile
We are a global manufacturer of electronic components that develops and manufactures products indispensable to people's lives
TAIYO YUDEN develops, manufactures, and sells electronic components for use in a range of electronic equipment that are essential to people's lives, including smartphones and other communication equipment, automobiles, and IT infrastructure/industrial equipment. The Company boasts advanced technological capabilities, continuing to produce the world's smallest MLCC, and supplies its products globally.
9%
Overseas Sales | 24% | Sales Composition | |
Ratio | 16% | by Market Sector | |
90.2% | Industrial | ||
Net sales | |||
IT infrastructure/ | |||
¥ 349.6 | equipment | ||
Ratio of Overseas | Automotive | ||
Production | billion | Communication | |
67.5% | 22% | equipment | |
Information | |||
29% | |||
equipment |
Consumer products
Sales Composition Ratio by Region
China | Other |
countries and | |
36.2 | |
regions | |
% | 54.0 |
% |
Japan
9.8%
TAIYO YUDEN INTEGRATED REPORT 2022 | 7 |
Multilayer ceramic capacitor (MLCC) | |
Reference: | |
No. of MLCCs used in electronic | |
equipment | |
Global market share | (As of December 2021 (According to in-house research)) |
No.3 | Per smartphone* |
(As of December 2021 (According to in-house research)) | Approx.1,300 |
*High-end model | |
Per electric vehicle | |
Mass production of the | Approx.10,000 |
world's smallest MLCC | |
0.25×0.125mm | |
FY2017 | FY2021 |
20.2 billion | 68.2billion |
Operating (8.3%) | (19.5%) |
income | Operating margin is shown in parentheses. |
GHG absolute | Accident frequency | Rate of newly | ||||
emissions reduction | rate* | recruited | ||||
rate | female graduates | |||||
(Compared to FY2020) | 0.10 | 38% | ||||
-5.2% | ||||||
(FY2021) | (FY2021) | (As of April 1, 2022) | ||||
*The accident frequency rate is the number of fatalities | ||||||
and injuries caused by work-related accidents per | ||||||
one million actual working hours and represents the | ||||||
frequency of accidents. The average for the Japanese | ||||||
manufacturing industry for FY2021 was 1.31 |
(FY2021)
8
Section
1
Rutilcon, barium titanate tubular ceramic capacitors
VALUE CREATION STORY
Since its inception in 1950, TAIYO YUDEN has been engaged in the Electronic Components Business, focusing primarily on capacitors. By constantly taking on new challenges and leveraging its long-honed core technologies, the Company has not only made lifestyles more convenient, but has also contributed to the discovery of solutions to various social issues.
Founder
Hikohachi Sato
Hikohachi Sato, the founder of TAIYO YUDEN, worked as a researcher in ceramic materials before the second world war. Following the belief that 'product commercialization should start from the development of materials,' Mr. Sato launched TAIYO YUDEN to develop and commercialize titanium-oxide porcelain capacitors in 1950.
He also believed that affection for others was the most valuable thing a person could have. The Company's management philosophy has three major components, all of which are designed to improve the social nature of the Company and contribute to cultural development by creating an environment in which employees and their families can live their lives in happiness and prosperity.
The beliefs and philosophy of Mr. Sato live on as the underlying spirit of TAIYO YUDEN.
STRATEGIES FOR THE | FOUNDATION UNDERPINNING | |||||
VALUE CREATION STORY | CREATION OF VALUE | VALUE CREATION | Data Section | 9 | ||
Mission
Stronger and more socially aware through the wonders of science
Management Philosophy
Employee well-being
Betterment of local communities
Responsibility to provide returns to shareholders
Vision
To be an excellent company that enjoys the trust
and highest regard from all stakeholders
Smart products
Smart design
High quality | Low power | Downsizing | Abolishing | ||
use of toxic | |||||
consumption | |||||
substances | |||||
Smart production processes | |||||
Following | More | Reuse and | Minimizing | ||
Safety first | efficient use | 100% yields | |||
rules | recycle | emissions | |||
of energy | |||||
Systems | |||||
OHSMS | ISO9001 | IATF16949 | ISO14001 |
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Taiyo Yuden Co. Ltd. published this content on 31 October 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 31 October 2022 04:08:02 UTC.