AISIN GROUP REPORT 2019 Integrated Report - Aisin Seiki
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AISIN GROUP REPORT 2019 Integrated Report
Corporate principles CONTENTS
Based on “Quality First” Progress in value creation
1. Enhanced Value Creation 02 AISIN Group history
We are committed to contributing to the advancement
of society through future-oriented research and 04 Strengths of AISIN Group
development that provides new value for our 08 Financial and other highlights
customers.
Creating value with a view to the next 50 years
2. Continuous Global Growth
We are committed to steady development and 10 Message from Top Management
growth in the global marketplace by establishing the 18 Financial strategies of AISIN Group
foundations of our business activities in local values,
cultures and customs. 22 AISIN Group’s value creation process
3. Harmony with Society and Nature
24 AISIN Group’s sustainability initiatives
—Identifying materialities—
We are committed to earning trust as a responsible
corporate citizen by valuing harmony with society and Results of our value creation initiatives
nature.
26 Our Virtual Company (VC)
4. Individual Creativity and Initiative
We are committed to building a work environment 27 Group Head Office
that promotes continuous progress by developing the 28 Powertrain VC
creativity and initiative of individual employees.
30 Chassis & Vehicle Safety System VC
32 Body VC
34 ICT & Electronics VC
36 Aftermarket VC
Value creation management
38 Executive officers
42 Governance
Social and environmental initiatives
50 Environment
60 Society
Financial and company information
72 Consolidated summary of financial and non-
financial information over the last 11 years
74 Financial review
Kanshiro Toyoda Kiyotaka Ise
77 Consolidated financial statements
Chairman President
Aisin Seiki Co., Ltd. Aisin Seiki Co., Ltd. 81 Major shareholders
82 Outline of 13 Main AISIN Group Companies
Editorial policy Framework for Disclosure of Information
AISIN Group Report (Integrated Report) is issued by AISIN Group to provide shareholders, investors
and other stakeholders with an understanding of our initiatives to increase our corporate value in
the medium to long term. The report is edited according to the International Integrated Reporting Financial Information Other Information
In fiscal 2019, we achieved record sales through initiatives to make our existing businesses more
Message from
Framework by the International Integrated Reporting Council (IIRC)
and the Guidance for Collaborative Value Creation by the Ministry of AISIN Group Report 2019
competitive, accelerate growth strategies with a view to the next generation and reinforce our
Economy, Trade and Industry to provide more important information on
the Chairman management foundations for sustainable growth. It is thanks to our stakeholders that we have
been able to achieve this, and we would like to express our warmest gratitude to you all.
how we are increasing our corporate value. This information includes
the history and strengths of AISIN Group, our strategies and business
Includes: Includes:
and President
• Financial Report • Social and Environmental
activities in the face of the biggest period of change in 100 years, and
The world’s automotive industry is currently facing the biggest period of change in 100 Guidance for • Securities Report Initiatives
our ESG initiatives. Information on our ESG initiatives covers work that
years. “Quality First” has been AISIN Group’s basic philosophy since we were first established. has a particularly significant impact on our corporate value from the Collaborative • Shareholders’ Report • Environmental Data
perspective of priority. Other details can be found on our website. Value Creation • Corporate Governance
We continually approach our work with a customer-first mindset, striving to create safe and Report
important, high quality products for our customers. This basic philosophy will continue to guide .
our work in the future as we aim to become a vibrant company that is truly competitive and Period Reference guidelines AISIN Group website
Primarily fiscal 2019 (April 1, 2018 to March ISO 26000, Global Reporting Initiative
provides new value. 31, 2019). Some information is related to (GRI) Standard, Environmental Reporting https://www.aisin.com
We hope that you will continue to support us and work with us in the future. activities outside this period. Guidelines (2012 Version) by Japan’s Ministry
of the Environment
Scope
In principle, this report covers AISIN Group Fiscal year
(Aisin Seiki Co., Ltd. and its consolidated April 1, 2018 to March 31, 2019
subsidiaries). In cases where the scope of The scope of consolidation covers
reporting differs, we indicate this using consolidated subsidiaries and equity-method
descriptors such as “13 main group affiliates.
companies”.
Issued
September 2019
AISIN GROUP REPORT 2019 01
Progress in value creation
AISIN Group history
AISIN Group is composed of a vast collection of automotive companies led by Aisin Seiki, our core company which was Strengths of AISIN Group:
founded in 1965. Throughout our history, we have strategically expanded and adapted our business operations to meet the ystem
ever-diversifying needs of the automotive industry. Each of our companies has a specialist-level team of professionals working e ty S
Saf ics le
cle ron t sty
with highly advanced technology. The changes taking place in the industry are the kind that come along once a century, but at i n Vehi c t e L ife
rtra ssis & y le rk y&
& E terma
AISIN Group, we are ready. In April 2017, we adopted a new Virtual Company System to maximize the vast potential among
our global companies in a unified way. The success of the Virtual Company System inspires us to continually improve the way
Po
we
Ch
a
Bo
d
ICT Af En
erg Outstanding technology
we do business to sharpen our competitive edge. development
AW Industries Aisin AW Industries • Creative development of technology that is environmentally friendly,
Aisin AW Industries fuel efficient, safe and user-friendly
Toyoyasu Seiki Aisin Toyoyasu
• Comprehensive evaluation of the functions and performance required
Aisin Kiko for every vehicle
1943
AISIN Kiko
AW Kiko • Wide-ranging collaborations with partners for maximum potential
Tokai Aviation Industries • Accurately assessing consumer needs with our extensive knowledge of
established Aisin Warner Aisin AW
BtoC business
Aisin AW
Aisin AW Seimitsu
Tokai Aircraft
Aisin AI
Aichi Kogyo
1965 ADVICS
ADVICS
Excellent manufacturing
Aisin Seiki formed
Aisin Seiki • Technology for the entire production process from raw materials
Shinkawa Kogyo Aisin Keikinzoku to assembly, using a wide range of methods including die casting,
Aisin Keikinzoku pressing and cutting
Sin’ei Kogyo Aisin Sin’ei • Supplying high-quality products worldwide
Aisin Sin’ei
Shinkawa • Passing on our knowledge and techniques through training initiatives
Takaoka Kogyo Aisin Takaoka
Industries
Aisin Takaoka to assist with technology development around the world
Ohama Sewing Hekinan
1945
Machines Industries Aisin Chemical
Toshin Aircraft Aisin Chemical
established
Chugai Finance Chugai Real Estate Aisin Development
Cohesive strength as a
Fuji Engineering Aisin Development
group
Aisin Development
Aisin Greening
• Wide-ranging business fields and highly specialized operations
• Flexibly adapting our core businesses to meet the needs of each
Hosei Brake Industry new era
Hosei Brake Industry
Shiroki Metal Industries Shiroki Corporation
Shiroki Corporation
Art Commerce Art Metal Mfg.
Art Metal Mfg.
1965 - 1974
Birth of Aisin Seiki
Aisin Seiki was created in 1965 through the merger of
1975 - 1984
Pursuit of “Quality First”
Aisin strengthened its corporate structure through total
1985 - 1994
Full-fledged overseas production
In reaction to the Plaza Accord in 1985, AISIN Group also
1995 - 2004
Expanding and upgrading overseas
business structure
2005 - 2014
Expansion and independence of global
business
2015 - present
Initiatives to strengthen AISIN Group’s
competitiveness
Aichi Kogyo Co., Ltd. and Shinkawa Kogyo Co., Ltd. to quality control (TQC), and won the Deming Prize, the commenced full-fledged overseas production. Driven by our mission to expand into new and emerging Along with the globalization of business, we strengthened • Business restructuring
strengthen corporate structure and fortify international Japan Quality Control Prize, the Plant Maintenance (PM) markets, we leveraged our full-fledged local production group collaboration and progressed with the creation of a We created a new framework by restructuring our manual
competitiveness as an auto parts manufacturer. Prize and the PM Special Prize in the TQC and total capabilities and strengthened our production and sales business structure in each region that enables operations transmission, brake, body, seat frame and piston businesses
New developments in leading-edge to strengthen our production systems and build our other
productive maintenance (TPM) categories. structures globally with a particular focus on North, South ranging from development and design to production and
technology fields core businesses.
Established mass production framework Future-oriented technology research began to bloom and Central America, Europe, ASEAN countries and China. sales to be carried out independently.
to handle changes in the market Toward the age of vehicle electronics with the creation of new products in the fields of energy • Accelerated development of future business fields
AISIN Group strategically chose to invest global development
We expanded our production capacity to meet market We launched a new structure that incorporated electronics and medical devices through the expansion of our global Initiatives for development in energy resources into three areas for future business expansion: zero
needs as the automobile manufacturing industry rapidly with traditional mechanics to respond to rapid advances in research network. fields emissions, automated driving and connected cars. These
expanded. this industry segment. Aisin’s corporate philosophy is deeply rooted in focus areas will drive our next-generation technologies.
environmental protection, and we began to promote
• Introduction of a Virtual Company System
Pursuit of self-reliance in technologies Research network for future technology efforts for commercialization to solve various The introduction of our Virtual Company System in 2017
As technology began to emerge as a trend in the development environmental issues such as global warming. This led to created a more unified AISIN Group and accelerated our
automotive industry, Aisin Seiki implemented measures As society began to look toward the 21st century, we new areas of product development including fuel cells potential for growth in this rapidly changing industry. The
to raise its capabilities, including opening the Technology developed a proprietary research network, establishing and solar cells. unified direction, improved efficiency, new value creation and
Development & Research Laboratory, building a new and then expanding laboratories for each of our core sophistication of this system gives us a distinct competitive
edge.
proving ground and proactively introducing technologies fields. Aiming for a sustainable society
from European and U.S. markets. We launched company-wide initiatives that position global (Billion yen)
environmental protection as a crucial management issue 4,500
because we believe that creating a sustainable society is
the social responsibility of all companies.
■ Sales throughout Aisin’s lifetime Electric water pump for
*Sales up to 1992 are non-consolidated. engine cooling
*Overseas sales: The figure used for this ratio overseas sales minus sales for items exported from Japan. 3,000
RWD 10-speed automatic transmission
Overseas sales
Power sliding door system
Overseas sales
33.7% FY2019
41.2%
FY2006 Consolidated revenue 1,500
Consolidated revenue
Commissioned for production of Gas engine driven heat-
Voice navigation system
¥ 2,120.5 ¥4,043.1
pump air conditioner billion
Toyoglide 2-speed semi-automatic Shower toilet Sun-roof (first in Japan) billion
transmission (first in Japan) (outdoor unit)
Development of home-use
sewing machines 0
1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015
02 AISIN GROUP REPORT 2019 AISIN GROUP REPORT 2019 03
Progress in value creation
Strengths of AISIN Group
Outstanding technology development
AISIN Group draws on a vast base of highly specialized technology in order to respond to the
increasingly sophisticated and diverse needs of the automotive industry and the demands of society.
From artificial intelligence to automated vehicles and cutting edge research to CASE* product
development, AISIN Group has the agility and ability needed to remain on the leading edge for the
future while producing the products of today.
*CASE is an acronym for “connected”, “autonomous”, “shared/service” and “electric”, indicating the core trends of the automotive industry.
Creative development of technology that is environmentally friendly, fuel-efficient,
safe and user-friendly
We never lose sight of our vision to expand our existing products globally, and to develop products that will change the future of
society. The 13 main companies in AISIN Group have 19 development sites and 13 advanced research facilities worldwide along
with three test courses. At any moment around the world, there is an Aisin team working hard to IMRA Japan
discover the next technological Sites Sapporo
breakthroughs in the automotive Aisin Europe S.A. Fields of Electromagnetic materials, superconductive
Research materials, biological sciences
industry. Aisin (Nantong) Technical Center Aisin Technical Center of America, Inc.
AW Technical Center Europe S.A.
(Belgium Head Office) of China Co., Ltd. Toyokoro Proving Ground Daiba Development Center
Nakagawa District, Hokkaido ＩＭＲＡＡmerica,Ｉnc．
AW Technical Center Europe S.A. Sites Fremont, Boulder, Ann Arbor
(Wolfsburg Branch) Fields of Lasers
Tangshan Aisin Gear Co., Ltd. Research
ADVICS Europe GmbH ADVICS Changzhou
Aisin AI Europe GmbH Administration Co., Ltd.
Fujioka Proving
Ground
Toyota City, Aichi AW Technical Center U.S.A., Inc.
Prefecture
Technova ADVICS North America, Inc.
Aisin Wuxi Body Parts Co., Ltd.
Sites Tokyo
Fields of Think tank (energy, the environment, transport, etc.)
AW Suzhou Technical Center Co., Ltd. Research
Shiroki North America, Inc.
AW Hangzhou Software Development Co., Ltd.
Equos Research
Aisin Automotive Haryana Pvt. Ltd.
Sites Tokyo, Anjo
ADVICS North India Pvt. Ltd. Guangzhou Shiroki Corp.
Fields of Fields related to information and energy Fowlerville Proving Ground
Research
Michigan, USA
Aisin Cosmos R&D
IMRA Europe S.A.S. Sites Kariya, Kisarazu
Sites Brighton (UK), Sophia Antipolis (France) Aisin Cosmos R&D Co., Ltd. Fields of Human subject research (Kariya), biotechnology
Sites Hyderabad Research
Fields of Electrochemistry (solar cells), perception
Research and intelligence (image processing), Fields of Chemical synthesis
electromagnetism (motors) Research IMRA Material R&D
Sites Kariya
Shiroki Asia Corporation Limited
Fields of Advanced materials
● Overseas development sites: 19 Aisin Asia Pacific Co., Ltd. Research
Aisin Automotive Ltda.
● Advanced research facilities: 13
● Test courses: 3
● Daiba Development Center
Comprehensive evaluation of the functions and performance Welcoming outside perspectives through wide-ranging
required for every vehicle collaborations with partners
When it comes to proving grounds, AISIN Group was a trailblazer, beating our competitors to the Recreating unique environments AISIN Group has a long history of alliance with research institutes, universities and other
punch by building a general proving ground including a circuit in 1970. Our proving grounds are around the world in our evaluations partners for technical collaborations such as the historic Technova* project. We continue
an important part of our constant work to verify and improve the performance and durability of to look outside our own practices to gather information from a variety of industries to best
our products, with highly advanced facilities and test courses recreating road conditions around anticipate and respond to the rapidly changing demands of the industry. In January 2018,
the world. Tests are conducted from a variety of angles, always with our users’ experience in mind. AISIN Group formed a consolidated subsidiary fund, the Fenox Venture Company in Silicon
The results of our evaluations are instantly applied to our product development work in an ongoing Valley, California, to maximize the resources of outstanding technical startups. We also
initiative to provide the reliability that the industry increasingly demands. We are always working to
signed a capital and business partnership with Idein
improve evaluations to accelerate development of next generation of products and make efficient
Evaluation of electromagnetic waves Inc. in February 2018. This partnership will work to
use of our findings throughout the group. transmitted to electronic devices develop cutting-edge technology, making use of Idein’s
Aisin builds automobile evaluation framework focused on manufacturers and users, AI model designs and outstanding technology for
with three domestic and overseas test courses mass-produced microcomputers to develop AI-based
products.
* Technova is a technical think tank that was established in AISIN Group
in 1978.
Evaluation of automatic brake systems
Fujioka Proving Ground Toyokoro Proving Ground Fowlerville Proving Ground
Evaluation of vehicle stability on course
Toyota City, Aichi Prefecture Nakagawa District, Hokkaido Michigan, USA
with artificial ice
Area: Around 670,000m2 Area: Around 7,480,000m2 Area: Around 3,840,000m2
04 AISIN GROUP REPORT 2019 AISIN GROUP REPORT 2019 05
Progress in value creation
Strengths of AISIN Group
Excellent manufacturing (production technology) Cohesive strength as a group
At AISIN Group, we give 110% to our manufacturing work, creating top-notch production With specialized expertise in a wide range of business fields, we are able to meet the wide-ranging
technology to produce products with quality our customers can rely on. needs of consumers—our end customers—in areas that range from our core automotive parts
And we have no plans to rest on our laurels—we will continue to innovate in the creative methods business to fields such as electronics and energy.
and build production processes we have developed for the next generation of products, and we will
build on our framework for our development of production technology so that every product in
every region of the world has the best possible quality.
Body product business Chassis & Vehicle Safety Powertrain Business
System business
Supplying high-quality products worldwide
Aisin Seiki Aisin Seiki Aisin Seiki
We have built a global supply framework with 150 production sites around the world.
We work closely with the world’s major automotive manufacturers to develop and supply products that meet their Aisin Sin’ei Hosei Brake Industry Aisin AW
diverse range of needs and provide a high degree of added value. Shiroki Corporation ADVICS Aisin Kiko
Aisin AW Industries
19.5% 17.9%
Ratio of Ratio of Art Metal Mfg.
150
total sales: total sales:
ADVICS
production sites around the world Sales: ¥789.0billion Sales: ¥724.1billion
55.7%
Ratio of
total sales:
Sales: ¥2,253.9billion
China North
Europe America
6 companies 31 companies Japan 23 companies
52 companies
Disc brake
ESC modulator
Total sales of
Sun roof AISIN Group
Raw Materials
¥4,043.1
Automatic transmission
billion Business
South
Africa Asia & America
1company 3 companies
Oceania
34 companies Power sliding door
High-performance
Around coating-type damping
Power back door system Parts supplied
by AISIN Group 15,000 material
Around Aisin Takaoka
Electric 4-wheel drive unit
Total parts
in an automobile 30,000 Aisin Chemical
Wide range of production Sharing knowledge and techniques (From a study by AISIN) Aisin Keikinzoku
methods and technology to contribute to global growth
With a wide range of production methods and We know that high-quality products come from
technology, from die casting and pressing to cutting, highly skilled workers, and one of our most important
raw material handling and assembly, AISIN Group is initiatives is a global training program for our Electric water pump
for engine cooling
involved in the entire production process, and our manufacturing team members. This enables us to
products account for an enormous number of the pass on the knowledge and techniques that AISIN Aftermarket Business
parts in a vehicle. Group has developed over the years, and contributes
to the development of the countries where AISIN’s
companies are located.
ECU Car navigation system
ICT & Electronics Business Energy & Homes Business
Aisin Seiki Aisin Seiki
Aisin AW Aisin Takaoka
ADVICS Aisin Development
Workers learn how to operate an Our staff learn how to draw
3.1% 3.8%
Ratio of Ratio of
industrial robot diagrams with CAD and by hand
total sales: total sales:
¥124.0billion ¥152.1billion
Household Gas engine driven Shower toilet
Sales: Sales: co‑generation systems heat‑pump air
conditioner (outdoor
unit)
06 AISIN GROUP REPORT 2019 AISIN GROUP REPORT 2019 07
Progress in value creation
Highlights
*The index used for emissions per sales is calculated as a percentage of the figure for
Financial Highlights *Figures are indicated by Japanese standards for fiscal 2015 and according to IFRS for fiscal 2016 onward Other Highlights the baseline year (FY2010) of targets set out in the Sixth Environmental Action Plan
Net sales, operating income and operating margin Profit before tax and profit attributable to the owner Total CO2 emissions and CO2 emissions per sales Total CO2 emissions in transportation and emissions per sales
of the parent company for the current period
■ Total CO2 emissions CO2 emissions per sales ■ Total CO2 emissions in transportation Emissions per sales
■ Net sales ■ Operating income Operating margin ■ Profit before tax ■ Profit attributable to the owner of the parent (1,000t-CO2) (Index) (1,000t-CO2) (index)
company for the current period 6,000 100 120 100
(Billion yen) 4,043.1 （%） (Billion yen) 89
3,908.9 87 84 84
4,000 8.0 300 82 93 83
92 79
3,562.6 268.1 76
3,245.9 6.5 250 237.3 4,500 75 90 75
2,964.6 217.4
3,000 6.4 6.0 71
5.9 194.0 69
5.6 5.1 200 184.0 2,959 3,027 59 62 62
3,000 2,719 50 60 50
2,521 2,579
2,000 4.0 150 134.5
126.6
110.1
100.3
100 1,500 25 30 25
77.5
1,000 2.0
50
192.7 228.6 253.8 205.5 0 0 0 0
166.1 2015 2016 2017 2018 2019 (FY) 2015 2016 2017 2018 2019 (FY)
0 0 0
2015 2016 2017 2018 2019 (FY) 2015 2016 2017 2018 2019 (FY) * Past figures have been revised due to changes in the scope of calculation. * Past figures have been revised due to changes in the scope of calculation.
Equipment investment and depreciation R&D expenditure and ratio of these costs to net sales Waste and waste per sales VOC emissions per sales
■ Equipment investment ■ Depreciation ■ R&D expenditure Ratio of these costs to net sales ■ Total emissions Emissions per sales ■ Total emissions Emissions per sales
(Billion yen) (Billion yen) 202.1 （%） (1,000t) (index) （t） (index)
389.9 2,000 100
400 200 20 280 100
182.9
167.7 84
162.6 80 77
294.1 149.1 72 72
300 150 15 210 75 1,500 75
260.3 74
247.8 237.4 173 71
226.4 163 169 57 55
161 53
213.4 149
186.1 197.1
200 100 10 140 50 1,000 867.0 50
161.0 839.3 826.8 807.5
757.8
100 5.0 70 25 500 25
50 5
5.0 5.0 4.7 4.7
0 0 0 0 0 0 0
2015 2016 2017 2018 2019 (FY) 2015 2016 2017 2018 2019 (FY) 2015 2016 2017 2018 2019 (FY) 2015 2016 2017 2018 2019 (FY)
* Past figures have been revised due to changes in the scope of calculation. * Past figures have been revised due to changes in the scope of calculation.
EPS (basic earnings for the current period per share) Dividends per share, payout ratio and total return ratio Total employees, overseas employees and ratio Rate of disabling injuries occurring in the workplace
■ EPS (basic earnings for the current period per share) ■ Dividends per share Payout ratio Total return ratio ■ Total employees Overseas employees and ratio National average 13 main Group companies in Japan
(Yen) (Yen) （%） (Persons) （%） （%）
600 160 100 200,000 100 0.6
150 150 0.54
0.51
490.22
125 0.5
444.46 0.43
408.64 120 75 150,000 75
74.5
400 354.53 100 119,732 0.4
95 66.5 114,478 0.41
110,357 0.39
94,748 99,389
80 50 100,000 50 0.3
247.69
34.7 36.7 44.5 44.7 45.1 43.9 43.5
200 28.2 36.7 0.2
34.7 30.6
40 28.2 28.1 25 50,000 25 0.17
0.16
0.1 0.13
0.11 0.1
0 0 0 0 0 0
2015 2016 2017 2018 2019 (FY) 2015 2016 2017 2018 2019 (FY) 2015 2016 2017 2018 2019 (FY) 2015 2016 2017 2018 2019 (FY)
*¥49 billion in shares in AISIN were purchased in fiscal 2017, and ¥59.4 billion
fatalities and disabling
in shares were purchased in fiscal 2018.
Disabling injury injuries in the workplace
= x 1,000,000
frequency rate
Total working hours
08 AISIN GROUP REPORT 2019 AISIN GROUP REPORT 2019 09
Creating value with a view to the next 50 years
Message from Top Management
Kiyotaka Ise
President
Laying the foundation for the next
50 years and beyond…
AISIN Group has contributed to the development of the automotive industry with
advanced technology, superb manufacturing and cohesive strength as a group.
Now, the industry is facing the biggest period of change in over a century with new
advances including electrification and automated driving.
We have the opportunity once again to contribute to the future of the industry by
changing as a company, and here we will tell you about our plans and initiatives
for sustainable growth.
10 AISIN GROUP REPORT 2019 AISIN GROUP REPORT 2019 11
Creating value with a view to the next 50 years
Message from Top Management
Based on “Quality First” from this wave of technical innovation have extended The third is to break down barriers. Until now, We need to increase our development of
deep into society. Technological innovation now AISIN Group has used branch management to technology and investment in the future.
With ”Quality First” as our corporate principle, influences the values of the general public, with cars achieve specialization and speed, but as the What we do have are Aisin’s three unique
AISIN Group continually strives to create appealing now beginning to be regarded as things to be “used” company has grown, redundancy has occurred in our strengths: our advanced technology, superb
products for our customers. “Quality First” is at rather than “owned”. In order to survive in the age business and management, while collaboration has manufacturing (production technology) and cohesive
the heart of everything we do, and it is the guiding of CASE, as these new technical fields are known in sometimes been insufficient. To resolve these issues, strength as a group (wide-ranging areas of business).
principle of our manufacturing processes. But with the automotive industry, we need to change the way we launched a Virtual Company (VC) System in April We will strengthen these and address the issues we
values becoming more and more diverse, the types we operate, and fast. 2017. Areas of business that are duplicated between are experiencing through two reforms.
of products and levels of quality that our customers group companies all operate together as if they are
are seeking are many and varied. We need to give one “company”. In future, we will think outside the
each of our customers our full attention and provide Three policies for action with a shared VC system to further accelerate collaboration within
the quality they are looking for. I want to look at our sense of urgency the group.
corporate principles through that lens as we build our Since I was appointed as President in June 2018,
business on those principles. In order to make the drastic changes needed, I have regularly explained the situation to all of our
each and every person at AISIN, from executives employees so that they can understand our policies
to employees, needs to properly understand the for action and the sense of urgency they need to
To survive the biggest major changes that are taking place in the industry have about these major changes. We will need to
and approach this situation with the sense of carry out structural reforms quickly in order to adapt,
period of change in urgency that it merits. We established three Action and nothing is more essential than a change in our
100 years, we must change Guidelines that will serve as common philosophies employees’ awareness in order to make those reforms
for the group as a whole. happen. I want this to become entrenched in AISIN’s
ourselves Our first Action Guideline is initiative and speed. culture and make AISIN a strong company that can
We expect each person at AISIN to think for grow sustainably and bring new value to society.
Rapid changes to the environment themselves and act quickly and proactively, rather
around us than waiting passively.
The second guideline is to scrap and build with Aiming for growth through
It has been said that the automotive industry is nothing considered untouchable. With resources, it
experiencing the biggest period of change in is essential to choose carefully and focus on what steady work on two
100 years. Fuel consumption and exhaust gas we have chosen. Even in businesses that have reforms
regulations are becoming more and more stringent contributed to AISIN Group’s growth in the past, we
around the world, prompting a shift to electric may lose our competitive edge and find no prospects In recent years, AISIN Group has continually
vehicles. Meanwhile, automated driving technology for growth. If this happens, we need to assess the performed well due to growth in demand for core
is advancing rapidly due to dramatic progress in situation quickly, scrap these businesses and shift to products such as automatic transmission (AT), but the
components such as computers, image processing areas where our resources are needed. The same is changes taking place mean that these increases in
and AI. Companies from a wide range of industries true in each of our individual operations: we need to our figures will not last long-term—in fact, our profits
such as electrical goods and IT have jumped at this prioritize our work, scrap the tasks with the lowest decreased in FY2019 due to a decline in the Chinese
demand, creating more intense competition in the priority and shift to the work that truly needs to be market. We are still feeling the pinch in FY2020, and
automotive industry than ever before. The ripples done now. our profits are expected to decrease for the second
year in a row. If the electrification of powertrains
continues, demand for AT may never again be what
it used to be—making it difficult to predict the future
of this core business.
AISIN Group’s three Action Guidelines
1 2 3
Break down
Initiative and speed Scrap and build
barriers
12 AISIN GROUP REPORT 2019 AISIN GROUP REPORT 2019 13
Creating value with a view to the next 50 years
Message from Top Management
Reform of corporate structure to The area of automated driving provides many Reforming our corporate framework to
handle CASE opportunities for us to show our strength, and by become highly profitable
focusing our development resources on technology
AISIN Group’s key strength is our wide-ranging like our vehicle dynamics control, electronically Changing our business structure to handle CASE will
areas of business - we make up to 15,000 of the controlled brake system, driver monitoring system, take some time and capital. We will need to reform
approximately 30,000 parts a car is said to contain. intelligent parking assist system and automated valet the structure of our existing businesses to streamline
This technology combined with our commitment to parking, we can significantly impact the autonomous and enhance profitability. This will mean scrapping
quality will enhance our development capabilities for future. and building existing businesses and cutting fixed
the wide range of products required in the age of Other fields expected to bring major changes to costs to create a lean framework.
CASE. the market are connected cars and sharing services. We are scrapping business areas and products that
By applying the technical base we’ve established We are using the latest technology to develop are not competitive and for which there are limited
with other products, we are tackling electrification products to meet the needs of shared users such prospects for growth such as the recent closure of Our first sewing machine, the HA-1
through the development of 1-motor hybrid as power sliding doors, smart door safety function, our sewing machine business, one of our original
transmission, 2-motor hybrid transmission, and smart seating arrangement and cabin monitoring businesses. We also discontinued our bed business,
electric drive modules such as the eAxle series, along system. a company that began over 50 years ago as Toyota
with other products involved in electrification of Through these expansions of our product range, Beds. These difficult decisions are evidence our
cars, such as electric pumps and our electronically we intend to grow our stake in CASE-related commitment to the future, and we are now turning
controlled brake system. products from 27% market share to approximately our attention to any underperforming automotive
We are also actively strengthening our frameworks 50% market share by fiscal 2024. parts businesses. Future resource creation will focus
for development, sales and production. In April 2019, We will also welcome outside perspectives in a on the development of our CASE business.
we entered a joint venture with Denso Corporation variety of fields through technical collaborations with We will approach the cutting of fixed costs from
to establish BluE Nexus Corporation to produce partners to rapidly expand into new areas of business. two angles. The first is a reform of our working
and sell electric drive modules such as eAxle. We practices. In addition to making thorough use of IoT
also combined Aisin AW and Aisin AI to optimize and RPA*, we will revise the operations performed by
our powertrain business as a whole and handle every employee to ensure that no time is wasted on
The first Toyota Bed, the Split Type Sofa Bed
electrification more efficiently. superfluous work. Combined with bold changes to
the way we work, we can increase productivity by at
least 20%.
The second is a revision of the branch management
TOPICS Announcement on October 31, 2019
system that has been behind AISIN Group’s
growth thus far, thereby redefining the group’s
Management Integration of Aisin Seiki and Aisin AW management for the needs of the future. Subsidiaries
October 31, 2019, Aisin Seiki Co., Ltd. (AI) and Aisin AW Co., Ltd. (AW) and management functions will be merged to
signed a basic agreement for the management integration of AI and AW. eliminate redundant costs and use our resources
In order for the Aisin Group to survive the once-in-a-century more efficiently. We will also centralize head office
transformation of the automotive industry, which is ushering in the functions such as management and procurement for
rapidly developing CASE-related fields and the entrance into the the group, making these functions stronger and more
market by companies from other industries, it has become necessary efficient.
to further strengthen our competitiveness, and to this end, in an
effort to strengthen collaboration within the Group and improve
management efficiency, the Aisin Group pushed forward with the * Robotic Process Automation, a system using a software robot in
which high-performance recognition technology such as rule engines,
introduction of the virtual company system in April of 2017.
AI and machine learning is used to automate operations or make
Although there has been some progress over the past two and half them more efficient.
years in collaboration and consolidation of management functions
across company boundaries, changes in external business conditions
are also accelerating and in order to proceed to a new level of
structural reform, a decision was made to carry out an integration of
AI and AW in the spirit of a merger on equal footing.
The new company resulting from the AI and AW merger will
further accelerate a shift of resources to critical areas, with the
objective of creating synergies in both operations and management
and strengthen our competitiveness in CASE-related fields.
14 AISIN GROUP REPORT 2019 AISIN GROUP REPORT 2019 15
Creating value with a view to the next 50 years
Message from Top Management
Medium-term management we will tackle this by identifying new demand in Becoming the corporate To all of
emerging countries and expanding our range for HV
plan for fiscal 2024 transmission and electric products such as eAxle. We group that society needs our stakeholders
plan to increase the role of electric products in our
Our medium-term management plan for fiscal sales of driving modules, raising the ratio from 5% in The global society is holding companies increasingly Since I was appointed President, I have been
2024 was created based on the initiatives we have fiscal 2019 to at least 20% in fiscal 2024. responsible for their impact – both good and bad changing the way we think by looking outside our
described so far. Here we will explain the key points, We are also working to further reduce R&D costs - on various social issues. A particularly prominent existing rules and operations and providing new ideas
including our predictions of future market trends. and fixed costs (other than depreciation) by reforming example is the Sustainable Development Goals (SDGs) to make AISIN Group more innovative. My mission
Growth in the automotive market is tailing off, our practices in the ways we mentioned earlier and set by the United Nations in 2015. is to successfully steer this ship through the biggest
and where global car sales used to grow every year, making a strong shift from our previous branch We are responding to this call and working sea of change in the automotive industry in the past
they have fallen in 2018 and 2019. As a result, it is management to our new group-wide management hard to achieve a sustainable society. In May century of the automotive industry. I am sharing my
expected to take three years longer than planned system. Our aim is for these costs to be lower in fiscal 2019, we established AISIN Group Principles of sense of urgency with all who work in AISIN Group
to reach the target of 13 million units that was set 2024 than they are in fiscal 2020. Corporate Behavior as a guide to fulfilling our and encouraging them to turn that urgency into
for fiscal 2021 in 2018 for core businesses such as Though profits decreased in both fiscal 2019 and social responsibilities, with extensive standards energy applied to innovation that lays the foundation
our AT, HV transmission and driving modules such fiscal 2020, AISIN Group is no stranger to surviving for contributing to sustainable economic growth, for growth over the next 50 to 100 years. In addition
as eAxle. We have revised our sales plan to sell 13 challenging times. By steadily carrying out our two identifying solutions to social issues and upholding to a strong drive for structural reforms in AISIN
million units by FY2024. This is still a challenging reforms, we aim to achieve an operating profit margin the rights of all people. Group, I will also improve our ESG management so
target that will require an increase of around 30% of at least 7% and ROE of at least 12% in fiscal 2024. Aisin has always been a company dedicated to that we can continue to be a company that society
on our sales of 9.99 million units in FY2019, but meeting social needs, with international cooperation needs. You can expect a lot from AISIN Group in the
and existing harmoniously with society and nature future.
as core tenets of our management principles. We
selected seven priority issues to focus on as a group
and have set long-term targets and KPIs for each
Management plan for fiscal 2024 issue to strengthen our initiatives to solve these social
issues.
Make fiscal 2020 a turning point and aim to increase operating profit margin by at least 7% by fiscal 2024 Because we have a special responsibility as an
■ Revenue Operating profit margin automotive company to address the significant
strain that vehicles place on the environment, we
(billion yen) （%）
5,000 10.0 are working to achieve zero CO2 emissions in the
entire life cycle of automobiles by 2050, developing
emission-reducing products and introducing
9.0 innovative new facilities to achieve zero CO2
4,000
emissions in our plants.
We also believe that stringent corporate
8.0
governance is the key to sound economic growth,
3,000 and we are consistently working to strengthen our
7.0 governance practices. On April 1, 2019, we reduced
the levels and number of operating officers in the
2,000 group to best expedite operations. We also reduced
6.0 our board of directors from 14 to 9 in June 2019,
with external directors now representing over a third
1,000 of our board. These initiatives will clarify the roles of
5.0 our management and operating officers and enable
more stable, more transparent management.
0 4.0
2017 2018 2019 2020 2021 2022 2023 2024 (FY)
16 AISIN GROUP REPORT 2019 AISIN GROUP REPORT 2019 17Creating value with a view to the next 50 years
Financial strategies of AISIN Group
Introduction: My role as a financial Our ability to achieve increases in profit in the wake eliminate waste wherever we can and sharpen
officer of the 2008 global financial crisis was driven by the our investments. With these principles in mind,
expansion of our AT sales. As I mentioned before, this we will make a drastic shift in our development
I began working for Aisin Seiki in 1981, in HR. I market is changing rapidly and cannot be solely relied investments and management resources to be
became involved in the “meat” of Aisin’s work upon during our current fiscal challenges. We also ready for the dawning age of CASE. We plan to
in 1987, when I was transferred to accounting. must address our stagnated productivity, an increase increase our spending on CASE-related development
In 1993, I transferred to an American production in our fixed costs and our undeniable dependency from 27% of our spending to around 50% by
company of ours, where I gained a wide range of on sales to reverse the consecutive decrease in profit fiscal 2024 and increase our CASE-related facilities
experience from business planning to accounting, over the last two years. We are fully grasping the from 10% to around 40%. We will approach
HR and general affairs. I was made the deputy head seriousness of this situation and we are taking the electrification by expanding our range of driving
of our Accounting Division in January 2002, and opportunity to make dramatic improvements to our products such as eAxle and HV transmission and
have worked my way up the ladder in accounting framework in order to survive these once-in-a-century by accelerating our development to provide entire
and finance since. In my current role in finance, changes. systems and packages. This approach capitalizes on
I take a medium- to long-term view, working to the strengths presented through the wide range of
achieve sustainable growth and improve our value by suitable products produced by AISIN Group, such as
ensuring that our return on invested capital (ROIC)*1 Basic policies for our medium-term cooperative regenerative brake systems and other
is greater than our weighted average cost of capital management strategies electronically controlled brakes and electric pumps.
(WACC)*2. This sustainable growth will be achieved Sharing is a core facet of today’s MaaS*2 society
through three key practices. First, we will continue to Our strategy through fiscal 2024 is to streamline the and this is changing the way cars are being used.
plant plenty of seeds for the future while building a structure of our company to create a lean company Cars are being driven for longer periods of time and
corporate framework that can cope with change and framework, adapt to the age of CASE, and achieve many different users are riding in them, resulting in
maintain profitability. The second practice is thorough an operating profit margin of at least 7% and return completely different needs from what was expected
risk management to prevent crises and minimize on equity (ROE) of at least 12%. of us in the past. We will accelerate development
damage if a crisis does occur. Finally, our third The indicators of profitability that we will focus of our car body parts such as power sliding doors
practice is to carry out strong initiatives for ESG and on are operating profit on sales, break-even point, and seats to increase durability, and will create
achieve the SDGs based on AISIN Group’s activities. ROE of the parent company and return on invested products and services that meet new needs for
capital (ROIC). Another key focus will be further more comfortable and convenient driving. To make
*1 An indicator of how efficiently a company is generating profit
from the capital invested in its business activities. (Operating profit
strengthening our earning power*1 from the current this development happen as quickly as possible, we
after income tax ÷ (inventories + property, plants and equipment + value of 15-16% to 19-20%. will seek outside input, actively collaborating with
intangible assets))
companies, venture businesses and other outside
*2 Weighted Average Cost of Capital (WACC): A weighted average
of the costs generated by loans (debt costs) and procurement Growth strategies parties.
costs generated by shares (capital stock costs). This is the minimum In order to stay ahead of the rapid changes
profitability that the company needs to achieve.
in the industry, we need to actively invest in
the development of next-generation fields,
Review of FY2019 and outlook for
FY2020 Strengthening our corporate framework
While we achieved record sales in fiscal 2019, our ROE Profit on sales Total asset turnover Financial coverage
Financial support for operating profit decreased. Profit for the period
＝
Profit for the period
×
Sales
×
Invested capital
structural reform with for Despite actively expanding our business for
CASE and powertrains such as AT and increasing
Stock capital Sales Invested capital Stock capital
medium- to long‑term value investment in development, AT sales were lower
than expected in the second half of the year due to
Strengthening our corporate framework Capital policy
Reform and elimination of businesses
creation
Maintain
factors such as a slowing of the Chinese market and • Scrap and build capitalization ratio of
temporary costs required to ensure quality. around 25%
As we continue to invest in development costs Reform and elimination of organizations
• Virtual company system/physical merging and elimination
for CASE and the strengthening of our production
Makoto Mitsuya Executive Vice President
framework in fiscal 2020, challenges remain in AT Reform and elimination of operations
Sales, particularly in the Chinese market, and both • Use of AI and robotics
• Unification of platforms
revenue and profits are expected to be down.
The Chinese market still offers a lot of potential
and the needs of this market are set to grow in the
future, but the impact of issues such as the trade Improve ROIC (return on invested capital) Procure capital
conflict between the USA and China are still of under favorable
immediate concern. conditions
18 AISIN GROUP REPORT 2019 AISIN GROUP REPORT 2019 19Creating value with a view to the next 50 years
Financial strategies of AISIN Group
*1 An indicator of the balance between interest-bearing debt and
Refining our corporate framework limiting of crises during calm periods and taking initial capital (net assets). (Interest-bearing debt/(interest-bearing debt + Closing: To all of our stakeholders
As we accelerate our development of the next measures in the event of a crisis to minimize damage, stock capital))
*2 A method in which the parent company or central company
generation of products, we need to refine our prevent secondary disasters and resume normal establishes dedicated accounts in the same bank for the group’s
corporate framework. I want to thoroughly reduce activities as quickly as possible. We assess risks by capital and manages the capital centrally for efficient consolidated In order to come out on top and survive the biggest
operations and use of capital. This term can refer to both the
fixed costs and decrease our break-even point to examining situations around the world and assessing method and the system itself.
period of change in 100 years, we must carry out
below 80% so that we can survive the major changes the severity of a risk and the frequency with which structural reforms to handle the shift to CASE and make
that are taking place in the market. To achieve this, the issue is likely to occur. We then determine the our corporate framework leaner. At the same time, it is
we will carry out reforms in each of our businesses, order in which risks should be dealt with and classify Changes in Capitalization Ratio essential to coexist harmoniously with the environment
organizations and practices, with “scrap and build” our responses into four categories: risk avoidance, Capitalization ratio = (interest-bearing debt/(interest-bearing and society and share our prosperity with the world. The
debt + stock capital))
and “shifting from branch management to group- risk control, risk shifting and risk retention. values in our corporate principles—“Enhanced Value
wide management” as our key phrases. ■ Stock capital ■ Interest-bearing debt Capitalization ratio Creation”, “Continuous Global Growth”, “Harmony
Scrap and build—with nothing considered *1 Earning power is an index calculated by adding together a with Society and Nature” and “Individual Creativity
company’s operating profit margin, depreciation cost ratio and (Billion yen) 24.9 （%）
untouchable—will be our basic policy as we reform development cost ratio. Operating profit margin indicates the 2,500 25 and Initiative”—fit very neatly with the Sustainable
21.9 22.7
and eliminate businesses. If it generates a loss or only company’s current performance, depreciation cost ratio indicates
20.2
21.7 Development Goals (SDGs) that are currently in the
the expansion of its businesses and development cost ratio indicates
a marginal profit, it has to go. A standout example its investment in the future. 2,000 1,873.6 20 spotlight. AISIN Group has always been aware that
1,803.1
of this is the elimination of our sewing machine and 1,694.8 each and every one of us is responsible for building
*2 Mobility as a service, a new concept in which the mobility provided 1,558.4
1,532.6
bed businesses, which have been a part of Aisin since by various forms of transportation is consumed as a service. 1,500 15 a relationship of trust with society at large through
we were first established. As we have said, nothing is our corporate activities. “Be with” is our slogan as
untouchable, and the same will apply to our automotive 1,000 10 we work to protect the natural environment, nurture
parts business. Capital policy 468.7 528.5
622.5 young people and contribute to the development of
429.0 394.3
500 5
Next, there is the reform and elimination of communities around the world. With globalization and
organizations. Until now, the growth of AISIN Group 0
increasing diversity exposing us to more new values,
0
has been ensured by branch management. However, as Our core capital policy is to improve the value of our 2015 2016 2017 2018 2019 (FY) cultures, customs and situations than ever before, we
the group has expanded substantially, this management company with a balance between safe finances and Figures are indicated by Japanese standards until fiscal 2015 and need to pay even more attention to society and the
according to IFRS for fiscal 2016 onward
method has resulted in a lot of redundancy, waste efficient use of capital. We approach this balance people we interact with. In the mid-Edo period (the Edo
and inefficiency in our businesses, products and core using capitalization ratio*1 as an index. We believe Changes in dividends period as a whole lasted from 1603 to 1868), people
divisions. To turn this around, we established a Virtual that this ratio should be around 25% to achieve the had a custom called kasa‑kashige (offering an umbrella).
■ End of period ■ Interim Dividend payout ratio*1
Company (VC) System in 2017 to switch from branch ideal capital composition. Any time two people passed each other on a rainy day,
management to group-wide management. We opened We work to ensure the safety of our finances by (yen) （%） they would move their umbrellas out of each other’s
250 36.7 40
group headquarters to facilitate our VC system. This using evaluations as one of our benchmarks and 34.7 way. People were conscious of giving way to each other
new format enables us to centralize and standardize our maintaining a trust rating of AA to A+ for debt on 30.6 a little so that they did not bump into others. They knew
200
28.2 28.1 30
managerial administration divisions and our divisions for long-term loans to ensure that we are always able to how to coexist, and this is the mindset that we need to
each function within the group, and to make effective procure outside capital at a low cost. 150 150 adopt now. While we are of course seeking to grow our
150
use of the assets in each VC. We also merged Aisin AW To use our capital efficiently, we make it a priority 125 company through our business activities, we also keep
20
100
and Aisin AI in April 2019 to promote these activities. to only procure debt capital within the scope that 100 95 90 90 our corporate principles at the forefront of our mind
75
We plan to spend fiscal 2020 merging, eliminating and allows us to maintain a high rating, and limit the 50 50 and carry out ongoing activities to ensure that we are
10
streamlining organizations at our numerous sites around scale of our capital to reduce our overall capital costs. 50 growing together with our shareholders, investors and
60 60
the world. We have also implemented a cash management 45 50 50 all of our other stakeholders.
0
Our reforms and elimination of operations will system (CMS)*2 to make effective use of our 0
2015 2016 2017 2018 2019 (FY)
consist of measures such as joint procurement, capital policies and the capital in AISIN Group on a
distribution and IoT development between the consolidated basis. FY2015 FY2016 FY2017 FY2018 FY2019
divisions for each of our functions and unification of At present, the ROIC for all of our businesses is
Profit for the period 77.5 100.3 126.6 134.5 110.1
platforms for operations such as HR and accounting around 8%, while the weighted average capital cost (billion yen)
in our managerial administration divisions to (WACC) is 5-6%. Our returns are higher than our Total dividends 26.8 28.3 35.2 40.7 40.4
streamline and centralize our operations throughout procurement costs, which indicates that we have (billion yen)
the group. We are also taking stock of all of our made AISIN valuable as a company, but it is also clear Repurchase of treasury 0 0 49.0 59.4 0
operations, focusing on what really needs to be done that we need to carry out initiatives to future increase stock (billion yen)
and making use of AI and RPA to dramatically reduce our returns. To accomplish this, we need to actively Total return ratio*2(%) 34.7 28.2 66.5 74.5 36.7
the time that our work takes. Together with our work on strengthening our corporate framework in *1 Dividends per share ÷ basic profit for the period per share
reforms of our working practices, these measures will the ways that I mentioned earlier. *2 (Total dividends + Repurchase of treasury stock) ÷ profit for the period
Figures are indicated by Japanese standards until fiscal 2015 and
increase the overall productivity of our staff divisions In terms of our return to shareholders, we according to IFRS for fiscal 2016 onward
by over 20%. have been able to achieve steady dividends with
a dividend payout ratio of around 30%. We will
Thorough risk management continue to keep our capitalization ratio and future Rating (as of August 2019)
Thorough risk management is essential to achieve investment trends at the forefront of our minds, Long-term Short-term
sustainable growth. This means prevention and and are considering share buy-back. S&P Global Rating A+ A-1
Rating and Investment Information Center (R&I) AA- -
20 AISIN GROUP REPORT 2019 AISIN GROUP REPORT 2019 21Creating value with a view to the next 50 years
AISIN Group’s value creation process
AISIN Group identifies priority issues to tackle social issues through our business practices.
“Quality First” is our basic philosophy as we apply the strengths we have developed
in everything we do. We supply a wide range of products and services in areas such as Corporate principles
automotive parts, energy and homes. AISIN Group works to provide value to society,
increase our value as a company and maintain the trust of our stakeholders, but we’re also Based on 1. Enhanced Value Creation
thinking bigger than that: we are contributing to the accomplishment of many of the UN’s
2. Continuous Global Growth
Sustainable Development Goals. “Quality First” 3. Harmony with Society and Nature
4. Individual Creativity and Initiative
Work Force Business capital Products and services Providing value to society
Social issues Priority issues Input Output Outcomes
Financial capital Automotive parts Shareholders and investors
Climate • Prevention of global warming
• Reduction of traffic accidents • Net assets: ¥1,873.6 billion Busin Bu ● Revenue: ¥4,043.1 billion
change esse
• Providing safe means of • Interest-bearing debt: ¥623.8 billion s an sine ● Dividends: ¥150
transportation for people and Plan ds s
erv s A
cargo • Cash on hand: ¥520.7 billion
mers ning ice ct
s t iv
● Aggregate market value: ¥1,065.8 billion
• Business cash flow: ¥354.9 billion
sto an o i
pr ti
Cu dc o Customers
es e ne
• Promoting a shift to clean o
vid
Depletion of energy Production capital Powertrain Chassis & Vehicle Safety
● We supply products to reduce traffic
accidents
nc
resources • Working to improve health
w
• Hybrid transmission Systems
Through our well-oiled supply
ep
va
and welfare • Electric 4-wheel drive • E lectronically controlled ● Our products are user-friendly and ensure
framework, we provide high-quality
lue
unit brake system
ts
our customers’ comfort
products worldwide • Intelligent parking assist
system ● Each vehicle is evaluated for quality you
• 150 production sites can count on
• ¥389.9 billion invested in facilities
Prod
Rapid • Technological innovation for
urbanization sustainable industries
Suppliers
• Prevention of pollution, Intellectual capital Outstanding technology
● We strive to coexist harmoniously with
u c tio n
Product design
reduction of environmentally our suppliers and share our prosperity
We develop a wide range of technology, development
unfriendly materials, recycling Body ICT & Electronics
always thinking of our customers around
of resources and more efficient
the world
• Power sliding door •C ar navigation system Employees
resource usage • Sun roof • ECU
• Sensors ● We make AISIN a fulfilling place for our
Environmental • R&D expenditure: ¥202.1 billion Excellent employees to work
pollution • Technical partners manufacturing ● We promote diversity and inclusivity
• Industrial health and safety, • 19,792 patents ● We enable our employees to have a
protecting human rights,
promoting diversity, reforming • 32 overseas research and better work-life balance
development sites The AISIN Group's ● We promote physical and mental health
working practices, work-life
strengths
Aftermarket
balance
Growing
social
• Sustainable procurement
Human capital Local communities
● We work on advances in mobility societies
De
inequality Behind our global success in
manufacturing are diverse personnel Cohesive Energy and homes to improve safety
ve
strength as a ● We contribute to local economies
with extensive manufacturing expertise
me
lop
d
t ho
s
group
• 119,732 employees nt e
● We contribute to the development of
• 52,065 overseas employees of rk m
local communities and the training of
f ac
f wo
Accidents and young people in those communities
disasters (43.5% of total) i li t ie nt o
s D e ve l op m e Environment
• Household co- • Shower toilet ● We work on popularizing electric
generation systems products to reduce CO2 emissions
● Thorough resource recycling procedures
are in place to reduce waste
Health
● We are contributing to the conservation
problems
of biodiversity
Corporate governance Compliance Risk management
AISIN Group Principles of
AISIN WAY Corporate Behavior
22 AISIN GROUP REPORT 2019 AISIN GROUP REPORT 2019 23You can also read
