Initiatives to Realize Vision 2030
(Medium-term Management Plan and Aichi Steel Priority Issues)

Vision 2030 clarifies what we want to achieve by 2030, and it presents a basic policy to enhance earnings capacity by reforming business and manufacturing while putting ESG management into practice. As a concrete plan and targets to realize this vision in respect to the FY2021–23 Medium-term Management Plan formulated in May 2021 and the five priority issues of ESG Management that we have been continually working on, we will strengthen the foundations of our company through digital transformation (DX) and accelerate initiatives, and use this to achieve steady growth.

Three Management Guidelines to Realize Vision 2030

Contribution to a sustainable global environment
  1. Fulfill environmental responsibilities
  2. Contribute to a low-carbon society
  3. Harmony with nature
7. AFFORDABLE AND CLEAN ENERGY 13. CLIMATE ACTION
Employee happiness and corporate development
  1. Safe and reassuring work environments
  2. Enhance work life
  3. Produce autonomous human resources
8. DECENT WORK AND ECONOMIC GROWTH 10. REDUCED INEQUALITIES 15. LIFE ON LAND
Creation of a prosperous society through business reform
  1. Reform existing business
  2. Develop business in new (smart) fields
  3. Shift from manufacturing to building value-added service systems
3. GOOD HEALTH AND WELL-BEING 9. INDUSTRY, INNOVATION AND INFRASTRUCTURE 11. SUSTAINABLE CITIES AND COMMUNITIES

Driving DX to accelerate solutions for priority issues (examples)

  • Digitization of data on tasks that previously relied on skills, intuition and tacit knowledge
  • Creation of explicit knowledge from streamlined data
  • Improvement of intellectual productivity to improve employee motivation

Positioning of Vision 2030 and the New Medium-Term Management Plan

Positioning of Vision 2030 and the New Medium-Term Management Plan

Aichi Steel Priority Issues

Aichi Steel Priority Issues

Aichi Steel Group FY2021–23 Medium-term Management Plan

Medium-term Management Plans, for each department, that are closely associated with the three management guidelines in Vision 2030

The Medium-term Management Plans for each department and company function are closely tied to the three management guidelines in Vision 2030. They are also an important step toward realizing that vision. The whole company will work together on activities to ensure steady implementation of the Medium-term Management Plans as we move toward the overarching goal of realizing Vision 2030.

3つの経営指針と各部門の関わり

Environment

Aims
Eco-program for a happy, smiling and prosperous future
Priority Issues
Contribute toward a sustainable global environment by implementing three pillars of the basic environmental policy
Three pillars of the basic environmental policy
  1. Eco-energy: Contribute toward a low-carbon society by reducing CO2 emissions
  2. Eco-production: Contribute toward a resource-recycling society by recycling automobiles
  3. Eco-management: Fulfill environmental responsibilities and grow together with local communities

Quality

Aims
Master manufacturing with a focus on quality
Priority Issues
Strengthen the foundations of Jikotei Kanketsu for office and plant workers by promoting the three pillars of quality
Three pillars of quality
  1. Quality management: Reforming QMS based on IATF 16949
  2. Development of quality-conscious human resources: Developing and utilizing talent able to put Jikotei Kanketsu into practice
  3. Fundamentally high quality design: Strengthening quality assurance for existing products
    Building a quality assurance system for new products

Production Management

Aims
Drive manufacturing innovation: Strengthen the foundations of TPS to help with Genryou Management
Priority Issues
Drive business process reform: Consistency and digital transformation
Genryou Management and optimized overall direct control: Personnel management and assignments, etc.
Develop TPS-conscious human resources: Driving force behind manufacturing innovation

Marketing & Sales Headquarters

Aims
Maintain volume while improving profitability
Priority Issues
Fulfill sales responsibilities
1. Secure order volumes up to the limits of production capacity
2. Improve profitability by refilling orders

Research and Development Headquarters

Aims
Dramatically increase the speed of R&D to become an innovation creation company
Priority Issues
Drive innovation through manufacturing that creates a sustainable and smart society

Manufacturing Innovation Headquarters

Aims
Manufacturing with the best quality, delivery and cost to achieve steady growth
Create workplaces that can utilize individuality and an overall optimized perspective
Priority Issues
Realize Vision 2030 and Genryou Management

Companies

Safety

Aims
Transform into a company recognized by society as having a culture of safety
Priority Issues
Strengthen foundations through reform of management, human resources and workplaces
Priority Safety Measures
  1. Safety management: Culture of safety with mutual awareness
  2. Development of safety-conscious human resources: Teaching company traditions and developing autonomous human resources
  3. Fundamentally safe design: Improving disaster mitigation efforts
  4. Health management: Creating workplaces with an open culture where employees can work with vitality

Corporate Planning Headquarters

Aims
Individual self transformation, with all Headquarters uniting to quickly and boldly work toward employee happiness and corporate development
Priority Issues
  • Manage progress of Vision 2030, medium-term and annual management plans, and effectively invest resources
  • Quickly and strongly implement ESG- and stakeholder-oriented measures
  • Develop strategies for subsidiaries to help improve corporate value for the Aichi Steel Group

Profit targets

Key Management Targets

FY2020 (Actual) FY2023 (Forecast)
Net sales 204.9 billion yen 250.8 billion yen
Operating profit margin 1.7% 6.0%
Payout ratio 29.1% 30.0%
ROE 1.9% 5.5%
Capital expenditures* 12.8 billion yen 51.2 billion yen
Interest bearing debt* 75.7 billion yen 62.7 billion yen
Depreciation expenses* 14.4 billion yen 16.9 billion yen

* Non-consolidated