TACHI-S has formulated a medium-term management plan (April 2021 to March 2025) with the end in fiscal year 2024.
Approach to Medium-Term Management Strategy
Started as a seat manufacturer, TACHI-S has grown to a “Seat System Creator” with fully integrated development and production systems and then to a “Global Seat System Creator”
providing our products the world over. Along with globalization of our customers, we have increased our sales. As the automotive industry enters a once-in-a-century transformation, however, the environment surrounding our company is changing drastically, and we must make changes in the way we do things or we are no longer able to envision our sustainable growth. In order to offer new value through our business activities and to survive as a truly independent company, we defined “Purpose of TACHI-S” and formulated a new mid-term management plan for 2021 to 2024, tentatively named “Transformative Value Evolution (TVE)”. The word TVE express our will to "evolve our values and provide new values through self-transformation in this era of great change."
Definition of ”Purpose”
To realize our corporate vision of “To live in harmony with individuals and society and to put smiles on people's faces by continuously creating living spaces of comfort and enrichment.", we first defined our company's "Purpose" in formulating this medium-term management plan. We thought about how we could contribute to the realization of a sustainable society using our technology to support human posture with "safety, security and comfort", our technology to "combine" various materials, and our Monozukuri capabilities to "deliver high-quality products on a global scale", and we have defined its purpose as "Supporting People and the Earth through ‘Seating’ Technology"
Our Purpose
Approach to TVE
We transform our operations by "Deepening" existing seat business field. Leveraging the outcomes, through "Innovating" and "Renewing", we create innovations that lead to new value and expand our business fields. Our aim is to increase corporate value by investing for further growth as we work to return the achievements to all our stakeholders.
Target of TVE
- Target： In addition to business strategies, we aim to enhance corporate value by comprehensively considering financial and capital strategies.
- Target value
|
FY2024 Management Targets |
| Operating income |
9.0～10.0 billion yen |
| ROE |
Minimum: 8％ / Target:10％ |
| DOE |
4% |
| Net Sales |
270.0 billion yen |
Business Strategy
We positioned the phases from FY2021 to FY2024 as Wave0 and Wave1, and set them as the "Revitalizing / Strengthening" phases. We rebuild the foundation by improving profit structure and asset efficiency.
In advancing our business strategy, we are working on three priority activity measures below.
- Transformation of Monozukuri
- Reform and restructure business strategies
- Strengthening management foundation
We will also work to promote DX as a foundation of activities.
Three types of "Shinkha": “Innovating," "Deepening," and “Renewing“ are key to our business strategy.
In the "Deepening" area, increase profitability by making operational process leaner, and invest management resource gained from the initiative in the "Renewing" and "Innovating" areas for growth to drive innovations. As a result, create values in a broader area by changing the sales composition.
Through all of these activities, we aim to realize our company's "purpose".
Three types of "Shinkha"
Financial and Capital Strategies
- Strategic policy： Manage with an awareness of the cost of capital
Designating Wave 0 ～ Wave １as a period of “Managing with an awareness of the cost of capital” and instilling this throughout the Group. In addition, using ROIC as important management index for ROE achievement
- Strategic Goal： FY2024 ROE Minimum: 8 ％ / Target:10 ％
FY2024 ROIC 8% or higher
Shareholder Return Policy
Using Dividend on Equity (DOE) ratio as primary financial index for dividends and proactively providing returns to shareholders while comprehensively taking into account factors including cash flow, maintenance of health.
Target： FY2021 - FY2024 DOE 3~4％
Trends in Dividend and DOE
Roadmap to Growth Strategies
Here is TVE‘s business strategy roadmap toward a space producer spread from seats in FY2030. We will also expand the Non-Automotive business other than seat parts. We aim for these two businesses to be the two wheels of our business. We back cast from that desired state, and positioned the phases from FY2021 to FY2024 as Wave0 and Wave1, respectively, and set them as the "Revitalizing / Strengthening" phases.
Specifically, we will rebuild our foundations by thoroughly improving our earnings structure and asset efficiency. After solidifying the foundation, all group companies will make concerted efforts to move forward into Wave 2 from FY2025 onwards to our desired state.
