FUTABA Integrated Report
2021
FUTABA WAY
Corporate Motto Quality Products at Lower Cost
Management Principle
We will continue with unceasing efforts to achieve the following.
-
Be a company that is trusted by and essential to our customers.
② Be a company that can be proud and worth living for
associates we work with.
③ Be a company that is broadly supported and loved by the local society.
Corporate Charter・Code of Conduct・Action Guidelines of Futaba
The Company We Want to Be by FY2030
・A strong team with individuals taking initiatives and tackling challenges ・A global monozukuri company with leading technologies
・A sustainable company that shows creativity and takes action
Introduction | About | Value Creation | Foundation | Corporate | Data |
FUTABA | Strategy | for Value Creation | Governance | Section | |
The Company We Want to Be by FY2030
● A strong team with individuals | ● A global monozukuri company | ● A sustainable company that |
taking initiatives and tackling | with leading technologies | shows creativity and takes action |
challenges |
Action Statement
We will focus on mobility in order to contribute to society by employing ideas, wisdom, and prompt execution
exceeding customers' expectations to provide safety- and environment-related technologies.
Safety | Environmental |
technology | |
Digital | |||||
Solution | Global | ||||
Prompt execution | |||||
Ideas | Wisdom | ||||
Welding technology | Durability evaluation technology | ||||
FY2021 to 2023 Mid-term Management Policy |
① Strong measures to be a trusted and successful company |
・Engage in business from the customer's perspective |
(focus on proposing solutions to customer issues) |
Fundamental | ||||||
Equipment design | Stamping technology | Adsorption and desorption | Acoustic analysis | |||
technologies | ||||||
control technology | technology | |||||
CONTENTS
Internal | ・Maximize profit in the automotive parts business | ||
environmental | ② Strong measures to be a true global company | ||
change | ・Globalize our HQ | ||
・Implement a mid- to long-term business strategy | |||
③ Strong measures for a sustainable corporate foundation | |||
・Grow our corporate value | |||
・Set up an infrastructure for the digital society | |||
・Reform our mindset for a new era |
External
environmental
change
Introduction
About FUTABA
03 Business Focus
04 FUTABA Group Sites
- Financial and Non-financial Highlights
- FUTABA History and Future
Value Creation Strategy
09 Message from the President
Foundation for Value Creation
- Manufactured Capital
- Intellectual Capital
- Human Capital
- Social and Relationship Capital
- Natural Capital
Corporate Governance
39 Corporate Governance
45 Directors and Audit & Supervisory Board Members |
Daily management | Annual company policy | Policy management | ||||
Human resources development | ||||||
- Priority Issues (Materiality): SDGs Initiatives
- Value Creation Process
- Mid-termManagement Policy
- Strategy by Product
47 | Comments from Outside Directors |
49 | Compliance |
50 | Risk Management |
Data Section
I Take on all challenges!
We will be united in our resolve to improve our manufacturing processes to ensure our clients and partners are always happy.
II The importance of being on site | ||||
FUTABAIII both in mind and body, and | ||||
Wisdom | Being present on site and assessing | |||
and | the actual situation is the best way | Respect | ||
to determine the root cause of any | for People | |||
Kaizen | problem. | |||
Be unassuming, humble, strong | ||||
when necessary be bold | ||||
It becomes easy to deal with difficult | ||||
issues and implement improvements | ||||
if you are modest, unassuming, | ||||
tough, and hardworking. |
IV Think individually, act collectively
Maximize results by working as a team where each individual is driven and understands the importance of working together.
WAY
V People first
Trusted relationships are formed by always treating everybody the same way―our clients, suppliers, affiliates, employees and their families, and people in our local communities.
Editorial Policy
Starting this fiscal year, we have published the FUTABA Integrated Report to explain and provide a better understanding of our strategies and initiatives for solving social issues and enhancing the Futaba Group's corporate value over the medium to long term for a wide range of stakeholders, including shareholders and investors. This report has been prepared and edited primarily with reference to the International Integrated Reporting Framework of the International Integrated Reporting Council (IIRC).
We intend to position this integrated report as a tool for dialogue with our stakeholders so that it will help lead to sustainable enhancement of our corporate value. We will continue to make every effort to promote a better understanding of our company.
Structure of Information Disclosure
Financial information | Non-financial information | ||
FUTABA Integrated | Report 2021 | ||
・Financial results | ・Environmental and social initiatives | ||
・Annual Securities Reports, etc. | ・Corporate governance report, etc. | ||
Futaba website https://www.futabasangyo.com/en/
- Financial Summary (Consolidated)
- Financial Review
- Consolidated Financial Statements
- Corporate and Stock Information
Reference Guidelines
● International Integrated Reporting Framework issued by the International Integrated Reporting Council (IIRC)
- Guidance for Integrated Corporate Disclosure and Company-Investor Dialogue for Collaborative Value Creation issued by the Ministry of Economy, Trade and Industry
Reporting Period | Scope of Report |
April 1, 2020 to March 31, 2021 | Futaba Industrial Co., Ltd. and its consolidat- |
*Some activities outside the reporting period | ed subsidiaries |
are also introduced. | *The scope of some sections is separately defined. |
Publication | |
September 2021 |
Notes on forward-looking statements
This integrated report includes predictions and forecasts regarding future plans, strategies, and performance. These statements are based on information currently available, and do not guarantee future performance. Actual performance may diverge from the predictions and forward-looking statements in this integrated report due to changes in the business environment.
1 FUTABA Integrated Report 2021
FUTABA Integrated Report 2021 | 2 |
Business Focus
The Futaba Group's main business is the manufacture and sales of automotive parts, information and environment equipment parts, equipment for external sale, and agricultural products.
We produce products that contribute to "Safety, Environment, and Performance" by utilizing core technologies such as sound damping, heat management, stamping, and welding that we have cultivated.
Automotive parts
167.6 billion yen (35.9%) | 27.1 billion yen | ||||||||||||||||||
Body/Interior parts | Fuel system parts | ||||||||||||||||||
(5.8%) | |||||||||||||||||||
»P21-23 | Canister | ||||||||||||||||||
»P24 | |||||||||||||||||||
Body frame parts | |||||||||||||||||||
Fuel inlet pipe | |||||||||||||||||||
29.9 billion yen | |||||||||||||||||||
Instrument panel reinforcement | |||||||||||||||||||
Suspension parts | |||||||||||||||||||
(6.4%) | |||||||||||||||||||
183.4 billion yen (39.3%) | |||||||||||||||||||
»P25-26 | |||||||||||||||||||
Exhaust system parts | Front suspension member | ||||||||||||||||||
Exhaust system | |||||||||||||||||||
Exhaust | Trailing arm | ||||||||||||||||||
manifold |
POWEREV® | Engine undercover | ||||||||||
(Exhaust heat recovery device) | |||||||||||
Information | 21.0 | ||||||||||
environment | Other | 37.8 billion yen (8.1%) | |||||||||
equipment | billion yen | ||||||||||
(4.5%) | |||||||||||
Equipment for external | |||||||||||
sales business | Agricultural business | »P28 | |||||||||
»P27 |
®
Tray module for copiers | Assembly and welding equipment | agleaf® CO2 accumulation and application device for |
greenhouse cultivation |
Introduction | About | Value Creation | Foundation | Corporate | Data |
FUTABA | Strategy | for Value Creation | Governance | Section | |
Futaba Group Sites (As of June 30, 2021)
Since we opened the first global site in the United States in 1994, we have expanded our business globally, currently with more than 20 sites around the world. We are also working to enhance capability of our production sites in each region to respond quickly to customers not only in Japan but also overseas. The Futaba Group will strive to create new value that contributes to solving social issues using this global network.
Global sites
■ : Consolidated subsidiary ▲: Affiliated company
FUTABA MANUFACTURING U.K. LIMITED (UK)
[Supervisory company] | |||||||||||||||||||
Futaba Czech, s.r.o. (Czech Republic) | TIANJIN SHUANG SHYE MECHANICAL | FUTABA NORTH AMERICA | |||||||||||||||||
ENGINEERING & MARKETING | |||||||||||||||||||
INDUSTRIAL CO., LTD. (China) | |||||||||||||||||||
CORPORATION (USA) | |||||||||||||||||||
CHANGSHA FUTABA AUTO | TIANJIN FUTABA-SC | ||||||||||||||||||
MECHANICAL CO., LTD. (China) | FIC AMERICA CORP. | FIO AUTOMOTIVE | |||||||||||||||||
PARTS CO.,LTD. (China) | [Supervisory company] | CANADA CORPORATION | |||||||||||||||||
(USA) | |||||||||||||||||||
GUANGZHOU FUTABA AUTO | FUTABA (TIANJIN) CO., LTD. (China) | (Canada) | |||||||||||||||||
PARTS CO.,LTD. (China) | DONGGUAN FUTABA METAL PRODUCTS CO., LTD. | FUTABA INDIANA OF AMERICA | |||||||||||||||||
CORPORATION(USA) | |||||||||||||||||||
Futaba Industrial Gujarat | (China) | ||||||||||||||||||
SHYE SHYANG MECHANICAL INDUSTRIAL CO., LTD. | FUTABA INDUSTRIAL | ||||||||||||||||||
Private Limited (India) | (Taiwan) | ||||||||||||||||||
FUTABA TECHNOLOGY LIMITED (Hong Kong) | TEXAS CORP. (USA) | ||||||||||||||||||
FMI Automotive Components | |||||||||||||||||||
Private Limited (India) |
PT.GREENLAND METAL STAMPING INDONESIA (Indonesia)
PT.FUTABA INDUSTRIAL INDONESIA (Indonesia)
Domestic sites
Domestic plants | Domestic subsidiaries and affiliated companies |
: Head Office ●: Plant | ■ : Consolidated subsidiary ▲: Affiliated company |
Aichi Prefecture | |||||||||||
Midori Plant | FUTABA HIRAIZUMI | ||||||||||
Chiryu Plant | |||||||||||
Crefact Corporation | CORPORATION | ||||||||||
Head Office, Okazaki Plant | |||||||||||
Takahashi Plant | FUTABA KYUSYU | FUTABA SUMI CORPORATION | |||||||||
Mutsumi Plant | |||||||||||
Kota Plant | |||||||||||
CORPORATION | |||||||||||
Tahara Plant | FUTABA GENERAL CO., LTD. | ||||||||||
3 | FUTABA Integrated Report 2021 | FUTABA Integrated Report 2021 | 4 |
Financial and Non-financial Highlights
Introduction | About | Value Creation | Foundation | Corporate | Data |
FUTABA | Strategy | for Value Creation | Governance | Section | |
Consolidated financial data
Sales
(Billion yen)
500 | 461.7 | 476.1 | 466.8 | |||
440.4 | ||||||
412.3 | ||||||
400 | ||||||
300 | ||||||
200 | ||||||
100 | ||||||
0 | ||||||
2016 | 2017 | 2018 | 2019 | 2020 | (FY) |
Operating profit / Operating profit ratio
(Billion yen) ■ Operating profit | Operating profit ratio | (%) | |
12 | 11.2 | 8 | ||||
10.6 | ||||||
9 | 8.9 | 6 | ||||
7.7 | ||||||
6 | 6.7 | 4 | ||||
3 | 2.2 | 2.6 | 1.5 | 2.2 | 2 | |
1.7 | ||||||
0 | 0 | |||||
2016 | 2017 | 2018 | 2019 | 2020 | (FY) |
Non-financial data
CO2 emissions (Non-consolidated)
(t-CO2) | |||||
80,000 | |||||
63,518 | 64,171 | 61,979 | 59,549 | ||
60,000 | |||||
54,145 | |||||
40,000 | |||||
20,000 | |||||
0 | |||||
2016 | 2017 | 2018 | 2019 | 2020 | (FY) |
Waste output (Non-consolidated)
(t) | |||||
1,200 | |||||
1,101 | |||||
900 | 904 | 861 | |||
820 | 774 | ||||
600 | |||||
300 | |||||
0 | |||||
2016 | 2017 | 2018 | 2019 | 2020 | (FY) |
Profit attributable to owners of parent / ROE
(Billion yen) ■ Profit attributable to owners of parent | ROE | (%) | |
12 | 30 | |||||
10.7 | ||||||
9 | ||||||
20 | ||||||
6 | 17.9 | 6.3 | ||||
4.8 | 4.0 | |||||
10.0 | 3.5 | 9.5 | 10 | |||
3 | ||||||
5.6 | ||||||
5.3 | ||||||
0 | 0 | |||||
2016 | 2017 | 2018 | 2019 | 2020 | (FY) |
Capital expenditures / Depreciation
(Billion yen) ■ Capital expenditures ■ Depreciation
45 | ||||||
41.3 | ||||||
30 | 27.3 | |||||
23.7 | ||||||
21.0 | 23.0 | 24.4 | ||||
20.2 20.5 | 19.4 | |||||
16.3 | ||||||
15 | ||||||
0 | ||||||
2016 | 2017 | 2018 | 2019 | 2020 | (FY) |
Number of employees / Percentage of overseas employees
(Persons) ■ Number of consolidated employees | Percentage of overseas employees | (%) | |
12,000 | 100 | |||
10,590 | 10,540 | 10,865 | ||
9,960 | 9,969 | |||
9,000 | 75 | |||
59.8 | 59.3 | 60.2 | 59.4 | 59.1 |
6,000 | 50 | |||
3,000 | 25 |
Number of employees taking childcare leave by gender (Non-consolidated)
(Persons) ■ Number of employees taking childcare leave (Female)
50 ■ Number of employees taking childcare leave (Male)
44 | |||||
40 | 1 | 41 | |||
0 | |||||
30 | |||||
26 | 25 | ||||
2 | |||||
20 | 43 | 41 | 6 | ||
17 | |||||
1 | |||||
10 | 24 |
Sales and operating profit by region
19 |
16 |
Europe (2 subsidiaries) | Asia | Europe | |
■ ■ Sales ■ ■ Operating profit | (Billion yen) | 10.0% | 7.0% |
Japan (Futaba Industrial + 4 subsidiaries)
■ ■ Sales ■ ■ Operating profit | (Billion yen) |
0 | 0 | ||||
2016 | 2017 | 2018 | 2019 | 2020 | (FY) |
0 | |||||
2016 | 2017 | 2018 | 2019 | 2020 | (FY) |
33.3 | 29.2 | 34.0 | China | Sales ratio | |||||||||||||||||||
26.3 | |||||||||||||||||||||||
0.7 | 0.9 | 16.8% | by region | ||||||||||||||||||||
(0.3) | North America | Japan | |||||||||||||||||||||
(0.9) | |||||||||||||||||||||||
18.1% | 48.1% | ||||||||||||||||||||||
2017 | 2018 | 2019 | 2020 (FY) |
258.9 | 266.1 | 264.2 | 233.8 | |
5.7 | 5.1 | |||
2.6 | 1.9 | |||
2017 | 2018 | 2019 | 2020 | (FY) |
Percentage of employees with disabilities (Non-consolidated)
(%) | Futaba | Statutory employment rate | ||
3 | ||||
2.30 | 2.38 | ||
2.21 | 2.20 | 2.27 |
Frequency of industrial accidents
(Disabling injury frequency rate) (Non-consolidated)
0.8 | Futaba | All industries | Manufacturing industry | ||||||||
* | Offices with 1,000 or more employees | ||||||||||
0.69 | |||||||||||
0.6 |
Asia | (3 subsidiaries) | ||||
■ ■ Sales | ■ ■ Operating profit | (Billion yen) | |||
48.6 | |||||
30.9 | |||||
18.4 | 19.8 | 0.8 | |||
0.2 | 0.2 | ||||
(0.1) | |||||
2017 | 2018 | 2019 | 2020 | (FY) |
China (9 subsidiaries)
■ ■ Sales ■ ■ Operating profit | (Billion yen) |
81.7 | ||||
58.0 | 68.2 | |||
53.3 | ||||
3.4 | ||||
2.5 | 3.0 | 3.0 | ||
2017 | 2018 | 2019 | 2020 | (FY) |
North America (5 subsidiaries)
■ ■ Sales ■ ■ Operating profit | (Billion yen) |
103.2 | 105.2 | 100.4 | 88.0 | |
3.2 | ||||
2.3 | ||||
1.5 | 0.9 | |||
2017 | 2018 | 2019 | 2020 | (FY) |
2 | 2.20 | 2.20 | 2.30 |
2.00 2.00
1
0
2016 | 2017 | 2018 | 2019 | 2020 | (FY) |
0.56 | 0.52 | 0.47 | ||||
0.46 | ||||||
0.4 | ||||||
0.24 | 0.25 | 0.29 | 0.26 | 0.28 | ||
0.2 | ||||||
0.22 | 0.10 | 0.19 | ||||
0 | 0.00 | 0.00 | ||||
2016 | 2017 | 2018 | 2019 | 2020 | (Year) |
Note: The Asia segment has been reclassified into the China segment and the Asia segment (other than China) effective from this fiscal year.
Source: Survey on Industrial Accidents, Ministry of Health, Labour and Welfare
5 | FUTABA Integrated Report 2021 | FUTABA Integrated Report 2021 | 6 |
Sales (Billion yen)
500
Introduction
FUTABA History and Future
Since its foundation, the Futaba Group as "a team that tackles challenges to grow" has made contributions with its advanced technological development capability and manufacturing capability to ensure our clients and partners are always happy.
We will work as one to contribute to the coming mobility society by leveraging the strengths we have developed.
About | Value Creation | Foundation | Corporate | Data |
FUTABA | Strategy | for Value Creation | Governance | Section |
400
300
Worked on pollution issues | Progressed further by leveraging | Took on a challenge to evolve the | Heat management technology | 466.8 billion yen | ||||||||||
(contribution through environmental | our core technologies (contribution | technological development (contribution | (contribution through | |||||||||||
technologies) | through safety technologies) | through environmental technologies) | environmental technologies) | |||||||||||
1960 Entered into the muffler business | 1970- Expanded the parts business to con- | 1990- Developed the world's first stainless steel exhaust | Developed an exhaust heat recovery device | SCR* | ||||||||||
Contributed to the social demand for solving noise | tribute to the environment and safety in addi- | manifold using "Evaluation/Analysis" and "Functional | by combining core technologies with heat | * SCR (Selective Catalytic Reduction): | ||||||||||
issues through our core technologies | tion to the muffler business by applying | design" technologies as a challenge to reduce weight and | management technology to recover and | |||||||||||
Selective catalytic reduction for a diesel engine | ||||||||||||||
stamping and welding technologies. | improve exhaust gas performance. | utilize heat energy from exhaust gas. | ||||||||||||
Origin of Futaba Industrial | ||||||||||||||
"Futaba" comes from a Japanese proverb "Sendan | ||||||||||||||
wa futaba yori kanbashi (The Japanese bead tree is | ||||||||||||||
fragrant from when a sprout, which is a metaphor | ||||||||||||||
for a genius always reveals himself or herself even | Entered into an | |||||||||||||
in childhood)." | Toyota Motor's first stainless | Toyota Motor's first exhaust heat | Technological | |||||||||||
Iron canister | agricultural field utilizing | |||||||||||||
"Industrial" is an English translation of a Japanese | ||||||||||||||
steel exhaust manifold | recovery device POWEREV® | core technologies | ||||||||||||
term sangyo, which has an implied meaning of "tak- | development | |||||||||||||
ing on any challenge to create business." | Took on a further challenge to enhance manufacturing | |||||||||||||
capability | ||||||||||||||
1956 | and technological development capabilities | |||||||||||||
Established research | (safety and environmental technology) | |||||||||||||
Started production of | ||||||||||||||
mufflers for scooters | and evaluation facilities | Instrument panel reinforcement | The world's first pipe | Muffler with | DPF* for diesel- | Took on a new challenge as "a team that tackles challenges to grow" nurtured | ||||||||
intake manifold | variable valve | powered vehicles | since the foundation to enhance manufacturing capability by developing hot | |||||||||||
Offered new value (contribution through | stamping based on safety technology and also a challenge to contribute to the | |||||||||||||
Developed and produced fish | environmental technologies) | environment with agleaf® using environmental technology. | FUTABA's | |||||||||||
Leveraged our strength of an integrated system of product | * DPF (Diesel Particulate Filter): The filter that reduces particulate matter (PM) contained in exhaust gas from a diesel engine | |||||||||||||
netting machines at a remarkable | Strengths | |||||||||||||
pace to solve the food shortage | development, production technology, and manufacturing, | |||||||||||||
Built a global production system (Globalization) | ||||||||||||||
which allowed us to propose products designed and evaluat- | ||||||||||||||
ed by ourselves to our customers and to produce them. | We developed a global production system to meet customer needs. In addition to production, we also | |||||||||||||
promoted to develop an integrated functional system for supervising and managing production.
200 | Produced high-grade reception | |
area seating sets utilizing core | ||
technologies |
Contributed to society through manufacturing capability
(contribution to local communities)
Futaba Industrial's first product was born from the desire to create products useful for society in the post-war era of food shortages, using our core technologies of stamping and welding cultivated by our predecessor Dengensha.
Manufacturing
capability
1970- | 1970- | 1980s | General purpose line for small-lot | 2015 |
Introduced industrial | Introduced large | Commercialized the | production of various products | Introduced hot stamping in Mutsumi |
robots for arc welding | transfer presses | world's first pipe- | Plant to meet customer needs | |
fabricated benders |
Took on a challenge to develop new technology | "Pushing the limit of production efficiency" |
(Innovation of the production line) | (Innovation of the production line) |
1970- We quickly attempted automation and achieved it amid sluggish sales of | We have attempted to increase production efficiency through automation with |
domestic automobiles, soaring resource prices, and a pressing need to improve | the aim of "Creating the world's No. 1 production line" and rebuilt the produc- |
productivity and streamline operations. | tion lines one after another. The technology is still applied in production lines. |
1940s1950s
100 | Start-up period | |
We created our core businesses by taking on the
challenges of various businesses using our
technologies with the first priority of contributing to the local communities and our employees.
1960s | 1970s | 1980s | 1990s | 2000s | 2010s | 2020s | ||||||||
Period of expansion and growth of automobile parts business | Period of expansion of domestic and global sites | Regeneration period | Become a | |||||||||||
sustainable | ||||||||||||||
We expanded the automotive parts business by | The top management and | employees worked | We boldly took on challenges for | We strengthened our foundation | company that | |||||||||
values | ||||||||||||||
utilizing our technologies and developed a | together to balance solid | investment with | becoming an industry leader and | to enhance compliance and | creativity and | |||||||||
system to fulfill our social responsibilities. | business expansion. | expanded our business globally. | ensure stable earnings. | action | ||||||||||
0
1945 | 1950 | 1960 | 1970 | 1980 | 1990 | 2000 | 2010 | 2020 | (FY) |
7 | FUTABA Integrated Report 2021 | FUTABA Integrated Report 2021 | 8 |
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Futaba Industrial Co. Ltd. published this content on 07 December 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 06 December 2021 15:51:08 UTC.