Taiyo Yuden : Management Policies(2090KB)

Management Policies

Katsuya Sase

Representative Director, President and CEO

May 8, 2024

What TAIYO YUDEN Group aims for

2

Medium-term Management Plan 2025

（From FY2021 to FY2025）

Materiality

Category

Economic

Value

Social Value

E

Environmental

Social Value

S

Social

Social Value

G

Governance

Materiality

• Strengthen core technologies to make our core business grow
• Create solutions to solve social issues
• Strengthen measures to address climate change
• Use resources effectively and contribute to creating a recycling society
• Achieve health-oriented management and work style reforms at safety first workplace
• Train and develop human resources based on the diversity policy
• Improve management quality to support business growth
• Establish and evolve BCM in preparation for disasters or infectious diseases

SDGs Targets

4

Priority Measures in Medium-term Management Plan 2025

Aim to enhance corporate value through the combination of economic and social value

1

2

3

4

Product Strategy

Further grow the MLCC business and strengthen inductor and communication device products to turn them into core businesses

- Create high value-added electronic components centered on high-end and high-reliability products

Market Strategy

Increase the proportion of sales in focus markets, primarily automotive and IT infrastructure/industrial equipment, to 50%

Financial Strategy

1. Continuously expand production capacity to meet increase in demand for electronic components
2. Aim to increase returns to shareholders and realize a stable dividend payout ratio of 30%

ESG Initiatives

Accelerate our efforts with numerical targets to improve our social value

• (E) Response to climate change, (S) Achieve health-oriented management and work style reforms at safety first workplace, (G) Improve management quality

5

KPIs in Medium-term Management Plan 2025

Corporate Value（Economic Value＋Social Value）

Economic Value

Net sales

Operating

margin

ROE

480

billion yen

15%

or higher

15%

or higher

Social Value

E

GHG emissions

E

Waste

Water usage

S	Safe & secure
	workplace
Optimization of group
	base functions

Absolute amount

FY2030 42% reduction

※compared with FY2020

Basic unit (production volume)

FY2025 10% reduction

※compared with FY2020

• Creating safe, comfortable and environmentally friendly workplaces
• Incidence rate of

injuries and illness	＜0.016
• Accident frequency rate	＜0.08

	ROIC				10%
				or higher

※Exchange rate assumption︓1US$=¥105

S

Work style reforms

Diversity

• Work engagement	2.5 or higher
• Rate of newly recruited
female graduates	30% or higher

• Female manager ratio

FY2030 10% or higher

6

Improving Economic Value

A Future Society Imagined by TAIYO YUDEN 〜Towards 2025 - 2030〜

The arrival of a connected world

• The Social Impact of Web 3.0, Generative AI, and Digital Twins - Revolutionizing the way we live and work. As a result, there has been an explosive growth in electronic devices and systems.

Digital twin

Generative AI

Fintech

Interconnecting

the senses

XR Working

Base station

Smart

Optical / quantumagriculture computing

	Construction
Cloud	site
Systems	×
	IoT
5G 6G
	Green energy

Base station

Smart maintenance

Detection and prediction of abnormality

Smart logistics

Management Material/production/transport/warehouse/ sales/delivery/customer inventory control

with AI

Connected Autonomous S Electric

wireless communication

ADAS

• Electronic components of semiconductors are indispensable for all electric devices.
• Fast-growingAI technology, IoT communications, and CASE.
• Sensing solutions are explosively increasing.

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Product development using material and multilayer technologies

Leverage outstanding technological expertise to supply high-end electronic components that underpin technological evolution in such areas as 5G and electrification of automobiles

High-capacitance

Multilayer ceramic

capacitors

High-frequency

Ni	＋		＋	Cu
electrode	Material	electrode
		technology
High		Multilayer		Metal
frequency	＋	＋
technology
circuit	material
design	＋		＋

Piezoelectric

Solid

electrolyte

Multilayer metal

Multilayer

ceramic filters

material

material

power inductors

Sensing devices	Power generation/power
storage devices
Actuators

9

Sales Composition by Market Sector

Consumer products

• Game console
• Smart watch
• Wireless earphones

Information equipment

• Tablet device
• PC
• HDD, SSD

Communication equipment

• Smartphone

Automotive

• ADAS
• Meter cluster
• ECU

IT infrastructure/

Industrial

equipment

• Base station communication device
• Server
• Security camera

Targets

Focus Market

50%

Automotive 25%

IT infrastructure/ Industrial equipment

25%

Sales ratio of growth market was expanded

Focus

Market

48%

*Estimated by the Company

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