AISIN GROUP REPORT 2017 - Aisin Seiki
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AISIN GROUP
REPORT
2017
English
AISIN Group History and Main Product Lines
Europe
Aiming to Be an 11
companies
China
37
companies
Japan
81
North
America
35
“Irreplaceable Global Partner”
companies companies
Asia &
Others
Africa AISIN Group
207
The AISIN Group has promoted the spinoff of companies into a network of subsidiaries and affiliates 38
centered on Aisin Seiki, which was established in 1965, to effectively leverage its advanced technological
1 companies South
company America
Australia
capabilities in the diversifying auto industry. By optimizing each company into a specialized business companies* 3
domain, we have become a corporate group able to process diverse materials such as steel, aluminum 1 companies
company
and resin into products that cover virtually all elements of driving that include the operating, turning and *Includes Aisin Seiki
*Excludes other 11 equity-method affiliates
stopping functions of automobiles. As of June 30, 2017
2006 2016
1965
Establishment
1986
1985 年度
1996
1995 年度
Consolidated 2005 年度
Consolidated Consolidated
Consolidated 連結売上高
連結売上高
net sales
連結売上高
net sales net sales revenue
0.4
¥ 0.4兆円
trillion
0.8
¥ 0.8兆円
trillion 2.1
¥2.1 兆円
trillion
¥ 3.5
trillion
1965 - 1974 1975 - 1984 1985 - 1994 1995 - 2004 2005 - 2014 2015 -
Birth of Aisin Seiki Pursuit of “Quality First” Full-fledged overseas production Expanding and upgrading overseas Expansion and independence of global Initiatives to strengthen Group
Aisin Seiki was created in 1965 through the merger of During the process of strengthening corporate structure In reaction to the Plaza Accord in 1985, the AISIN business structure business competitiveness
Aichi Kogyo Co., Ltd. and Shinkawa Kogyo Co., Ltd. with through total quality control (TQC), won four crowns, Group also commenced full-fledged overseas Along with the start of full-fledged local production, Along with the globalization of business, strengthened ■ Business restructuring
the aim of strengthening its corporate structure and including the Deming Prize, the Japan Quality Control production. strengthened production and sales structures in North Group collaboration and progressed with the creation Completed creation of a new framework following
fortifying international competitiveness as an auto parts Prize, the Plant Maintenance (PM) Prize and the PM America, South and Central America, Europe, ASEAN of a business structure in each region that enables restructuring of five businesses, namely manual
manufacturer. Special Prize in TQC and total productive maintenance New developments in leading-edge countries and China guided by the policy “Advance on operations ranging from development and design to transmissions, brakes, auto-body parts, seat frames and
(TPM) categories. our own into areas where there are markets.” production and sales to be carried out independently. pistons, in order to develop existing business and strengthen
technology fields
Establishment of mass production Future-oriented technology research began to bloom our production system.
structure Toward the age of car electronics with the creation of new products in energy and Initiatives for development in energy
Launched a new structure that combined electronics ■ Accelerated development of next-generation
Production capacity was increased and strengthened to medical device fields. Established a global research fields growth domains
respond to a rapid expansion of automobile production. with traditional mechanics to respond to rapid network.
advances in car electronics. Advanced toward new development themes such as Identified three fields for the Group to focus on, namely
fuel cells and solar cells. Promoted efforts for “zero emissions,” “automated driving” and “connected
Pursuit of self-reliance in technologies commercialization to solve various environmental cars” that are viewed as key in our mission to develop
To establish independent technologies, Aisin Seiki Research network for future technology issues, beginning with global warming. next-generation technologies and made the decision to
promoted measures to raise technological capabilities development invest development resources held by the Group in these
that included opening the Technology Development & In anticipation of 21st century society, built an Aiming for a sustainable society fields in a focused manner.
Research Laboratory, building a proving ground and independent research structure that included a research Commenced company-wide initiatives that position
proactively introducing technologies from European and laboratory with basic fields as its themes. ■ Introduction of a Virtual Company System
global environmental protection as a crucial Introduced with the aims of strengthening unity within the
U.S. auto parts manufacturers. management issue based on recognition that realizing AISIN Group and boosting responsiveness to change.
a sustainable society is a social responsibility of Directed toward raising competitiveness from four
Building a foundation for overseas business companies. perspectives: (1) heading in the same direction, (2) improved
Proceeded to build a foundation for overseas business in efficiency, (3) new value creation, and (4) sophistication.
preparation for an expansion in exports of auto parts
and for leaping forward as an international company. ⇒ Please refer to “Message from Top Management”
on Pages 06-11 and “Virtual Company Presidents’
Roundtable Discussion” on Pages 12-17 for details.
AISIN Group Main Product Lines
Powertrain Domain Chassis & Vehicle Safety System Domain Information/Electronics Domain
Manual transmissions Multi-stage hybrid transmissions Automatic transmissions Electric water pumps Exhaust manifolds Variable valve timing Active rear steering Brake boosters and Disc brakes Parking assist systems Car navigation systems
for passenger cars for passenger cars for passenger cars for cooling the engine and converters master cylinders
Body Product Domain L&E Domain
Sunroofs Power sliding door systems Window regulators Power door latches Spray-type damping coat Beds, bedding and furniture Home-use sewing machines Shower-toilet seats Gas engine driven Fuel cell cogeneration system
heat-pump air conditioners for residential use
A I S I N G R O U P R E P O R T 2 017 01
A Look at One Year in the AISIN Group
A Year for Enhancing Group In fiscal 2017, we set the AISIN Group slogan as “Do what you want to do to make tomorrow
better” with the aim of becoming “A vibrant company that possesses true competitiveness and
proposes new value” and promoted initiatives to bolster the competitiveness of existing
Collaboration and Building Capabilities businesses, accelerate development in next-generation growth domains and strengthen
competitiveness by enhancing Group collaboration.
to Switch from Defense to Offense
Management-
April 2016 September 2016 August 2016 - February 2017
related topics
Acquired own shares of common stock (approx. 10 million
Management integration of SeaHorses MIKAWA took part in
shares at a cost of ¥49.0 billion). April 2017
Shiroki Corporation into Aisin Seiki the first division of the B League
in the Japan Professional http://www.aisin.com/news/pdf/20170301.pdf
Basketball League, which was Introduced a Virtual Company System to bolster unity in the
launched in 2016. February 2017 AISIN Group and strengthen responsiveness to changes.
⇒ Please refer to “Message from Top Managemet” on Pages
Management integration of 06-11 and “Virtual Company Presidents’ Roundtable Discussion”
Aisin Seiki and Art Metal on Pages 12-17 for details.
MFG
August 2016 April 2017
April 2016
Aisin Kyushu Co., Ltd. completed Aisin Seiki and airweave Inc. entered into a sales
The factories of Aisin Kyushu restoration and resumed production. alliance for ASLEEP and airweave brand bedding.
Co., Ltd. and Aisin Kyushu
Casting Co., Ltd. were damaged November 2016 ⇒ Please refer to “Business Report for Fiscal 2017” on Pages
24-27 for details.
in the earthquakes with
Started working groups in next-generation growth domains
maximum seismic intensity of 7
focused on three fields of “zero emissions,” “automated
that hit Kumamoto Prefecture
driving” and “connected cars.”
⇒ Please refer to “Business Report for Fiscal 2017” on Pages 24-27
for details.
2016 2017
April May June July August September October November December January February March April
Product-
related topics
August 2016 October 2016 December 2016 February 2017
Products employed in Products employed in the Products employed ENE-FARM TYPE S fuel cell cogeneration system for
June 2016 the Nissan Serena Subaru Impreza in the Toyota C-HR residential use won the Energy Conservation Grand
Prize.
Products employed in
Guangzhou Automobile Group ⇒ Please refer to “Business Report for Fiscal 2017” on Pages
24-27 for details.
Motor Co., Ltd.’s
GA8
Power sliding door Variable valve timing
Cooperative regenerative brake system March 2017
Electric oil pump Interior handle
September 2016
Products employed in the Toyota
Products employed in October 2016 LEXUS LC500
the VOLVO 590
Engine Engine Aisin Seiki announced
side module front module ILY-Ai, a new model of
Spray-type damping coat
personal mobility
10-Speed FWD Aluminum fixed Pop-up door handle
8-Speed FWD 6-Speed FWD Automatic Transmission type 6-pot caliper
Automatic Transmission Automatic Transmission
02 A I S I N G R O U P R E P O R T 2 017 A I S I N G R O U P R E P O R T 2 017 03
｜Message from the Chairman and President｜ | Corporate Principles |
The AISIN Group companies that were damaged in the Kumamoto earthquakes in April 2016 have Based on “Quality First”
made a full recovery, and we would like to express our sincerest appreciation for the warm support
we received.
1. Enhanced Value Creation
In fiscal 2017, sales of automatic transmissions and body parts were strong worldwide, spurring We are committed to contributing to the advancement of society through future-oriented
research and development that provides new value for our customers.
record high sales. Despite the negative impact of restoration costs following the Kumamoto earth-
quakes and foreign exchange translation loss on profits, we still managed to post record highs in 2. Continuous Global Growth
We are committed to realizing steady development and growth in the global marketplace by
operating profit, profit before income taxes and profit attributable to owners of the parent.
establishing the foundations of our business activities in local values, cultures and customs.
The AISIN Group will continue to advocate a basic philosophy of “Quality First” going forward
3. Harmony with Society and Nature
and strive to build an even sturdier structure by learning the lessons of the recent earthquakes. At
We are committed to earning trust as a responsible corporate citizen by valuing harmony with
the same time, we will contribute to the creation of an environment enabling a better society and society and nature.
better lifestyles based on the unified efforts of our global Group. 4. Individual Creativity and Initiative
We ask for your continued understanding and support as we forge ahead. We are committed to building a work environment that promotes continuous progress by
developing the creativity and initiative of individual employees.
Kanshiro Toyoda Yasumori Ihara
Chairman President
Aisin Seiki Co., Ltd. Aisin Seiki Co., Ltd.
CONTENTS
01 AISIN Group History and Main Product Lines 28 AISIN Group CSR
02 A Look at One Year in the AISIN Group 29 Organizational Governance
04 Message from the Chairman and President 32 Human Rights and Labor Practices
06 Message from Top Management 40 Environment
50 Fair Operating Practices
12 Special Feature 1 Virtual Company Presidents’ 54 Consumer Issues
Roundtable Discussion
56 Community Involvement and Development
18 Special Feature 2 Discussion between an Analyst
and Executive Vice President
60 AISIN Group Profile (14 main companies)
22 Consolidated Financial and Non-Financial Highlights
24 Business Report for Fiscal 2017
Editorial policy Notations
AISIN Group Report 2017 is issued to provide stakeholders with information AISIN Group Aisin Seiki Co., Ltd. and consolidated subsidiaries
concerning the Group’s various activities while promoting dialogue with
14 main Group companies*1 Aisin Seiki Co., Ltd.*2
stakeholders. Along with this report, please refer to the AISIN Group CSR Aisin Takaoka Co., Ltd.*2
page on our website for more detailed information. Aisin Chemical Co., Ltd.*2
Aisin AW Co., Ltd.*2
Period covered Aisin Keikinzoku Co., Ltd.
Primarily fiscal 2017 (April 1, 2016 to March 31, 2017). Some information is Aisin Development Co., Ltd.
related to activities outside this period. Aisin Kiko Co., Ltd.
Scope of the report Aisin AI Co., Ltd.*2
In principle, the AISIN Group (Aisin Seiki Co., Ltd. and its consolidated subsidiaries) Aisin Sin’ei Co., Ltd.
is covered in this report. In case the scope of reporting differs for each information Aisin AW Industries Co., Ltd.
category listed, we indicate as such using the terms six core Group companies and Hosei Brake Industry Co., Ltd.
13 main Group companies. ADVICS Co., Ltd.*2
Shiroki Corporation
Reference guidelines Art Metal MFG Co., Ltd.
ISO 26000, Global Reporting Initiative (GRI) Sustainability Reporting Guidelines
Version 4, Japan’s Ministry of the Environment Environmental Reporting Guidelines *1 14 companies including Art Metal MFG Co., Ltd. from
(2012 Version) fiscal 2018
*2 Six core Group companies
Fiscal year
April 1, 2016 to March 31, 2017 Cautionary statement with respect to forward-looking statements
All fiscal years mentioned in this report run from April 1 to March 31 of the The report contains statements concerning plans, prospects, strategies, convictions
following year based on the accounting fiscal period in Japan. Scope of and business performance forecasts regarding the future of Aisin Seiki Co., Ltd.,
consolidation covers consolidated subsidiaries and equity-method affiliates. consolidated subsidiaries and equity-method affiliates. These statements are based on
judgments made by AISIN from information that can be obtained at the present time
Issued
and may also involve risks and uncertainties.
August 2017
Aichi Kogyo Co., Ltd., the predecessor to Aisin Seiki, manufactured the first Toyota sewing machine HA-1 in 1945. Kiichiro Toyoda, the first president
of Aichi Kogyo, was committed to delivering top-quality sewing machines to customers to help with the swift reconstruction of Japan after the war.
It took only six months before his aspirations bore fruit and production was underway. Approximately 80% of the sewing machines were sold
04 overseas at the time and the foreign currency earned was used to support Aichi Kogyo’s business, making this product invaluable to the company. A I S I N G R O U P R E P O R T 2 017 05
MESSAGE FROM TOP MANAGEMENT
Review of Fiscal 2017
Problem-Solving Activities through Genchi Genbutsu (Go and See for Yourself)
Lead to Record-High Profits
During fiscal 2017, operating profit increased I personally visited all 227 companies and 320
¥35.9 billion and we achieved record-high reve- main bases that are undertaking business to accu-
nue and operating profit. The primary factors rately ascertain the current state of our business
driving these solid results included the approximate operations through genchi genbutsu. In doing so,
1.32 million increase in unit sales of automatic I discovered and examined problems for each
transmissions by Aisin AW, to 8.69 million units. function, geographic region and product, and
Also contributing to performance were especially identified approximately 350 of the most critical
strong sales of high-added-value body parts, problems. In response, we subsequently carried
including system products such as Aisin Seiki’s out problem-solving activities by ranking each
power sliding doors, in Japan and China. problem based on its level of urgency and then
I am extremely grateful that we finished the solving problems one by one starting with the
fiscal period with outstanding business results, highest-priority issues. I believe our problem-
especially when considering the cloudy outlook at solving activities functioned extremely well.
the beginning of the fiscal year due to the effects For example, in door locks, one of the
of the Kumamoto earthquakes and the impact company’s mainstay products, we video recorded
of the strong yen. I would also like to express and then performed comparative evaluations of
my appreciation to all our employees for their all assembly lines at our nine bases worldwide,
hard work. centering on the Shinkawa Plant in Japan. This
Looking at our business activities, our top has allowed us to deploy the most efficient
management priority has been to strengthen the manufacturing processes globally as well as to
competiveness of our existing businesses. In line continuously compare and review purchased
with this objective, for approximately two years components at all bases, which has resulted in
Outline of business restructuring
Chassis & vehicle
Powertrain domain Body product domain
safety system domain
Aisin Seiki Co., Ltd. System products
AISIN Group
Shiroki Corporation
External/
Management
Pistons Controlled brake production
Integration
functional parts
Aiming to be a Vibrant, Art Metal MFG
Co., Ltd. 5 Aisin AI Co., Ltd. 1 ADVICS Co., Ltd. 2
Shiroki
Corporation 3
Globally Competitive Company
4
Management MT* development Controlled brake
Production Seat frames for Toyota Motor Corporation
Integration and production development
That Proposes New Value
Toyota Motor
Art Metal MFG Co., Ltd. DENSO Corporation Toyota Boshoku Corporation
Corporation
1 Consolidation of development and production functions of MT business under Aisin AI Co., Ltd. from January 2016
2 Consolidation of development and production functions of controlled brake business under ADVICS Co., Ltd. from April 2016
3 Integration of Shiroki Corporation into a subsidiary and consolidation of external and functional parts of body product business under Shiroki from April 2016
Yasumori Ihara 4 Transfer of development and sales of TMC’s seat frame business to Toyota Boshoku Corporation from November 2015
President 5 Integration of Art Metal MFG Co., Ltd. and consolidation of piston business under Art Metal MFG from February 2017 *MT: Manual transmission
Aisin Seiki Co., Ltd.
06 A I S I N G R O U P R E P O R T 2 017 A I S I N G R O U P R E P O R T 2 017 07
MESSAGE FROM TOP MANAGEMENT
improved profits. Besides this example, we are restructuring implemented in the powertrain The first guideline, “accelerate growth strate- The third guideline is to “reinforce the man-
achieving significant results at various bases and domain, Chassis & Vehicle Safety System Domain gies that anticipate the next generation,” is the agement foundation that supports sustainable
for products, and our problem-solving activities and Body Product Domain as we proceed Group’s top priority. Based on the watchwords growth” and this also encompasses compliance.
are now being firmly positioned throughout our smoothly with initiatives for strengthening com- “zero emissions,” “automated driving” and “con- We will once again reevaluate the underlying
operations worldwide. petitiveness in all domains. nected cars,” we will accelerate development foundation that supports our corporate activities,
We also began undertaking business restruc- As these examples demonstrate, I am confident activities targeting next-generation growth thoroughly adhere to our basic philosophy of
turing in fiscal 2016. As part of this reorganiza- that we are making steady progress toward domains as well as introduce a Virtual Company “Quality First” and assure quality that meets the
tion, in February of fiscal 2017 we integrated the “strengthening our underlying foundation.” Based System and tackle new challenges in Group man- expectations of our customers.
management of Art Metal MFG Co., Ltd. in the on this assessment, I would like to make fiscal agement for strengthening Group competitiveness. We are also advocating the following three
piston business. With this business integration, we 2018 a year in which we transition from The second guideline is to “strengthen com- measures as behavioral guidelines for individuals.
have now completed the framework for business “defense” to “offense.” petitiveness in existing businesses.” As we earn The first is to “have a dream” for attaining or
the benefits of our business restructuring, we will realizing some desire. The second is to speedily
steadily progress with the building of an efficient take on new challenges for realizing this dream.
Toward Future Growth Group production structure that responds to The third is to “break down any walls in the
Issues to Be Addressed by the AISIN Group increasing demand for automatic transmissions. company, business and functions” that stand in
The AISIN Group has promoted the establishment connected to the internet. Along with this, the Group will work in unison to your way.
of separate, independent companies and achieved In the automobile industry, a wave of unprece- accelerate initiatives for raising competitiveness. Under these management policies and three
growth as a professional corporate group under dented dramatic structural change is rapidly These efforts will focus on standardizing compo- behavioral guidelines, I would like the AISIN Group
the respective management policies of each of approaching. This includes the advance of auto- nents and evaluation items previously determined to be a vibrant company that possesses true com-
these companies that specialize in specific product mated driving technologies, the spread of con- separately for each company as we strive to petitiveness worldwide and proposes new value.
lines. When looking at the state of the world in nected cars and evolving lifestyles characterized by improve development efficiency.
recent years, however, I am concerned about cars changing from something you own to some-
growing business risks and regional risks, such as thing you share.
an increase in global protectionism policies, and The AISIN Group’s transmission business is Accelerate Technology Development in Next-Generation Growth Domains with the
have a heightened sense of uncertainty about the currently performing well. That said, I am unsure Group Working in Unison
future. The impact of recent developments on the whether we can maintain our future competitive- The AISIN Group has specialized in a domain hybrid cars, electric vehicles (EVs) and fuel cell
AISIN Group’s business activities is totally unpre- ness as these changes unfold merely by maintain- involving the actual movement of cars based on vehicles (FCVs). Specifically, we are developing a
dictable. At the same time, IT is advancing with ing the status quo. As a response, we will promote the “operating, turning and stopping” functions one-motor automatic transmission for hybrid cars
unprecedented speed, and society is undergoing initiatives for strengthening our sense of unity as of automobiles. Going forward, an urgent task in that is being demanded by European automakers.
dramatic changes as everything around us is now a Group and our ability to respond to change. this domain will be to respond to systemization We are also focusing on developing motors and
and integration accompanying the advance of inverters, which are basic components of power-
automated driving and connected cars in the trains for EVs and FCVs, by leveraging our knowl-
Formulating Group Management Policies for Strengthening Our Sense of Unity as a future. As I look ahead to our development that edge cultivated in hybrid transmissions.
Group and Our Ability to Respond to Change combines artificial intelligence with the AISIN In the EV/FCV System WG, we are undertaking
We formulated the Group Management Group’s existing core technologies, I believe that development in cooperation with Toyota Motor
1. Accelerate growth strategies that
Policies from fiscal 2018 with the aim of aligning the three areas of “zero emissions,” “automated Corporation in anticipation of the age of EVs and
anticipate the next generation (take on
our direction as a Group. These policies help us driving” and “connected cars” will likely become FCVs. We would like to provide a variety of prod-
challenges toward the future).
recognize challenges and strengthen our sense of extremely important areas. Therefore, I decided to ucts suitable for electrification across a wide field
2. Strengthen competitiveness in existing
unity as a Group and our ability to respond undertake Group-wide new technology develop- that includes not only our powertrain business but
businesses.
to change. ment activities in these three areas with the Group also our chassis & vehicle safety business and body
3. Reinforce the management foundation
Our fiscal 2018 Group Management Policies working in unison. product business.
that supports sustainable growth.
consist of the following three guidelines: In the first area, zero emissions, we are pursu- In the second area, automated driving, we are
ing various initiatives through the Electrification making various efforts in the Vehicle Dynamics
Working Group (WG) and the EV/FCV System WG. Control WG and the Automated Valet Parking WG.
The Electrification WG is moving forward with The Vehicle Dynamics Control WG is developing
the development of powertrain products for systems that optimize vehicle dynamic
08 A I S I N G R O U P R E P O R T 2 017 A I S I N G R O U P R E P O R T 2 017 09
MESSAGE FROM TOP MANAGEMENT
performance and realize integrated control of We possess a wide variety of products and The VC System is composed of four business
operating, turning and stopping functions that technologies that include such body parts as VCs and the Head Office. The business VCs con-
encompasses powertrains, steering, suspensions power sliding doors, power back doors and sun- sist of the Powertrain VC, which handles engines
and brakes. I had the opportunity to test drive a roofs as well as such body sensors as driver moni- and transmissions; the Chassis & Vehicle Safety
prototype vehicle that integrated this technology. toring systems. The Hospitality Services WG aims System VC, which is responsible for brakes, chassis
The body responded favorably when making sharp to use these technologies to realize a variety of and automated driving; the Body VC, which han- consolidate its transmission development
turns and we are already realizing bodies that functions that provide comfort. These include seat dles body components such as power sliding resources cultivated to date, build a unified devel-
enable extremely comfortable rides. positioning that activates in conformance with the doors and sunroofs; and the ICT & Electronics VC, opment structure and promote the development
In the Automated Valet Parking WG, we carried driver the instant the driver is seated as well as which handles navigation, electronic control units of new powertrains.
out development aimed at fully automated park- doors that detect the presence and distance of and sensors. Through the VC System, we will In the Chassis & Vehicle Safety System VC,
ing whereby with just one touch of a button an adjacent vehicles and then changes the way the promote product development by consolidating ADVICS, Aisin Seiki and Hosei Brake Industry will
automobile performs automated parking and then doors are opened to avoid making contact with the technologies of each company and enhance collaborate in the development of brakes, chassis
automatically returns to a drop-off location. We other vehicles. business efficiency by eliminating overlapping and automated driving to raise the performance of
have already advanced to the stage of test drives The Location Based Services WG creates domains. Further, the Head Office will possess “operating, turning and stopping.”
using actual vehicles, and we hope to introduce services that support the movement of customers functional divisions such as development, produc- In the Body VC, we will adjust overlapping
this technology at this year’s Tokyo Motor Show. leveraging the navigation technologies of tion, procurement and sales as well as business product domains of Aisin Seiki, Aisin Sin’ei and
In the third area, connected cars, we are Aisin AW and utilizing position information administration divisions that include accounting Shiroki Corporation and integrate each company’s
undertaking various initiatives in the Hospitality and Big Data. and human resources functions. We will proceed field of strength. By doing so, we will strive to
Services WG and the Location Based Services WG. with the sophistication of our business operations enhance efficiency through the pursuit of econo-
through functional divisions and enhance the mies of scale while developing efficient production
efficiency of business operations through the lines that leverage the excellent qualities of the
Introducing a Virtual Company System toward Strengthening Group Competiveness unified platform of business administration three companies.
In April 2017, we introduced a Virtual Company lines to undertake product development, produc- divisions. In the ICT & Electronics VC, we will strengthen
System (VC System) as a foundation for strength- tion and sales as if each product line is one com- In detailed terms, the Powertrain VC will center competitiveness by integrating all electronic com-
ening the competitiveness of the Group as a whole. pany. On the other hand, we will speedily execute on Aisin AW, which handles automatic transmis- ponent and navigations system units, consolidat-
The VC System was introduced for the purpose our business operations while maintaining respect sions and transmissions for hybrid cars; Aisin Seiki, ing resources and raising development efficiency.
of strengthening competitiveness by bolstering a for each real company to take advantage of the which handles transmissions for commercial ⇒ For details, please refer to “Virtual Company Presidents’ Roundtable
sense of unity as a Group and our ability to respond excellent DNA cultivated at each separate com- vehicles; and Aisin AI, which handles manual Discussion” on Pages 12-17.
to change. To attain this objective, we are consoli- pany to date, such as their diversity, respect for transmissions. Each company in this VC will
dating various companies according to business people, spirit of challenge and a sense of speed.
Overview of VC System A Company That Provides Excitement and Joy to Its Customers
Board of Directors At first glance, there appears to be no particular president we unveiled the slogan “Do what you
problems under the business structure that main- want to do to make tomorrow better.” I ask you
Business VC System Group Head Office
Chassis & Vehicle Group Managerial
tains our DNA, whereby each separate company to ensure that the AISIN Group remains a group
Powertrain VC Body VC ICT & Electronics VC Group Functions
Safety System VC Administration determines its own direction just as we’ve always of companies that can provide excitement and joy
Aisin Seiki Aisin Seiki Aisin Seiki Aisin Seiki Functions Admin done. However, I have the sense that without to customers throughout the world in any era.
realizing it, the entire AISIN Group has become The automobile industry is approaching a major
Aisin AW Aisin AW Functions Admin
very large, the AISIN spirit has faded and each turning point. I believe that various initiatives,
Aisin AW Industries Hosei Brake Industry Aisin Sin’ei
Aisin Kiko Shiroki Corporation company is heading in slightly different directions. beginning with our VC System as well as our
Aisin AI Aisin Takaoka
Art Metal MFG Aisin Chemical
I view the recent introduction of the VC System as development activities in next-generation growth
Electrification WG Automated Valet Hospitality Services WG Location Based Aisin Keikinzoku an excellent opportunity to continually promote fields, will in a sense determine the future of our
EV/FCV System WG Parking WG Services WG Aisin Development
change in the four lines of business and develop company. I have a strong desire to continue taking
ADVICS ADVICS ADVICS Functions Admin this system into an optimal shape through on new challenges while having dreams so that
Vehicle Dynamics repeated trial-and-error efforts with the Group we can move toward the future together with
Control WG
working in unison. When I assumed the duties of our customers.
10 A I S I N G R O U P R E P O R T 2 017 A I S I N G R O U P R E P O R T 2 017 11
Special Feature 1 Virtual Company Presidents’ Roundtable Discussion Perception of the Environment Surrounding
the VC System and Issues of Each VC
Ihara: Please share your views on the environment highly competitive sunroofs, power sliding doors and
Further Reinforcing Our Future
surrounding each Business VC and the Group Head other system products, which we have only been able
Office and describe existing issues. to supply to a limited group of customers, we need to
enhance our product lineup to provide more choices
Competitiveness through the Virtual Powertrain VC
Ozaki: The demand for automatic transmissions is
to customers and push ahead with the development
of forward-looking, next-generation products.
Company System on the rise, and one issue is how we increase our
production capacity while adapting to regulatory ICT & Electronics VC
changes. Increasingly stringent environmental regula- Uenaka: The ICT and electronics field is seeing the
tions have been enforced across the world, such as increased use of IoT and artificial intelligence (AI).
the CAFE*1 standards in the United States and the ICT and electronics will be at the core of the auto-
NEV*2 regulations in China. If these regulations push mobile industry in the future, and we need to
the trend toward electrification and accelerate the collaborate with the rest of the Business VCs in
shift to hybrid vehicles (HV), electric vehicles (EV) and taking necessary actions.
fuel cell vehicles (FCV), the demand for the existing
automatic transmissions may decline. We have to Group Head Office
prepare for that risk as well. Mitsuya: Business models in the automobile indus-
*1 Short for Corporate Average Fuel Efficiency, the CAFE standards are regulations in the
United States, which calculate the average fuel efficiency of each automaker and require
try have changed dramatically, encouraging many
the automaker to ensure that its fuel efficiency does not go below this standard value.
*2 Short for New Energy Vehicle, the NEV regulations in China require automakers to sell
companies operating in different business sectors to
a certain number of “new energy vehicles,” including EVs and plug-in hybrid electric
vehicles (PHEVs).
enter into the industry. We have to adopt a new way
of competing with these companies. Under these
Chassis & Vehicle Safety System VC circumstances, we need to make moves geared
Ogiso: In the field of chassis and vehicle safety, we toward the next generation and the generation after
are undergoing considerable changes involving that, while securely attaining growth in our existing
electrification, automated driving and connected cars business fields. To do so, the Group Head Office has
and facing severe competition. As seen in the grow- to carry out three tasks. One is to look ahead, dis-
ing demand for preventive safety technologies to cuss with the Business VCs what technologies and
eliminate traffic accidents, needs of the times are businesses to invest in from a broader business
changing, requiring us to make a swift response and perspective and set up a structure to provide access
take up new challenges. On the other hand, to the information necessary for such discussions.
mechanical components, such as brakes that safely The second is to consolidate common resources and
stop heavy vehicles weighing one or two tons, still operations for better efficiency and use the resulting
remain very important. The entire Group has to “surplus” to further refine the existing operations.
make concerted efforts to increase the competitive- The third is to reinforce our safety, environmental
ness of these products, including adoption measures and quality postures that form the foundation of our
targeting emerging countries. management. These are the three tasks the Group
Head Office intends to tackle.
Body VC Ihara: Is the Group Head Office planning to draw in
Nishikawa: Aisin Seiki and Shiroki Corporation had staff from our 14 Group companies?
been “good” rivals, learning from each other for Mitsuya: As a first step, about 40 members and 10
Kazuhisa Ozaki Satoshi Ogiso Yasumori Ihara Masahiro Nishikawa Hiroshi Uenaka Makoto Mitsuya
President President President President President Executive Vice almost 50 years. Recently, however, the competition members from 14 Group companies of the
Powertrain VC Chassis & Vehicle Aisin Seiki Co., Ltd. Body VC ICT & Electronics VC President with manufacturers in emerging countries has been Managerial Administration Sector were dispatched
Safety System VC Aisin Seiki Co., Ltd.
intensifying, and the two companies are having a hard to Aisin Seiki and Aisin AW, respectively, on April 1,
time to prevail over the competition, particularly in the 2017. They are making an “inventory” of businesses
Recently, the automobile industry has faced extreme changes, driven by technological innovation, such field of exterior and functional parts, such as door at these companies.
as vehicle electrification, automated driving and the Internet of Things (IoT), and by the entry of IT and frames and moldings. Increasing the competitiveness
other different business sectors into the industry. To increase our capability to respond to such changes of these existing products is an urgent task. In addi-
and strengthen the unity of the AISIN Group, we launched the Virtual Company (VC) System in April tion, as the two companies together operate 46
2017. With President Ihara leading the discussion, the president of each VC and Executive Vice President vehicle body bases in and outside Japan with some
Mitsuya representing the Group Head Office talked about what specific initiatives are being overlaps in business fields, we also need to increase
implemented under the VC System to increase overall competitiveness. the efficiency of our supply structure. As for our
12 A I S I N G R O U P R E P O R T 2 017
Special Feature 1 Virtual Company Presidents’ Roundtable Discussion
Yasumori Ihara Kazuhisa Ozaki Satoshi Ogiso
President President President
Aisin Seiki Co., Ltd. Powertrain VC Chassis & Vehicle Safety System VC
Specific Initiatives under the VC System
Ihara: Now, could you describe the specific initiatives hybrid transmissions. Aisin Seiki and Aisin AW had Chassis & Vehicle Safety System VC ties. While conducting these three activities, we will
of each Business VC and the Group Head Office? separately developed motors and inverters in the Ihara: The Chassis & Vehicle Safety System VC continue to take on challenges in new fields during
past, but we consolidated development resources handles brakes and everything that relates to the following year.
Powertrain VC into Aisin AW two years ago and have thus strength- operating, turning and stopping. What are your
Ozaki: We need to effectively utilize the overseas ened our development structure. specific initiatives? Body VC
bases of Aisin Seiki, Aisin AW and Aisin AI to set up Ihara: Does it mean that the development process, Ogiso: Currently, we are promoting the sharing of Nishikawa: First, for increasing the competitiveness
an efficient production structure across the entire which had been undertaken solely by Aisin AW, has information on each VC, its tasks and the business of existing products, we rolled out “best mix” activi-
Powertrain VC. For example, we are considering become a task of the entire Powertrain VC? environment and working to determine the direction ties last year to extract the strengths of each of the
shifting the roles of personnel and equipment at Ozaki: Yes, and it also means we have more options our full-scale efforts should pursue. While doing so, three companies. These activities have begun to
some of Aisin AI’s overseas production plants from now. Over the medium to long term, electrification we have decided to deliver products that are truly show some good results. We will reinforce plant
manufacture of manual transmissions to manufac- and other changes in vehicles will also entail changes valuable and globally competitive. We are now in operations by unifying quality management stan-
ture of automatic transmissions. in powertrains; therefore, one of our important the stage of discussing specific initiatives based on dards and operational management methods of the
In the field of electrification, as a response to the action themes is how we envision our future in this policy. three companies, and facilitating personnel
switching demand from automatic transmissions to response to such changes. Ihara: Could you provide examples of products that exchange. Next, in terms of reorganizing our supply
hybrid transmissions, we are developing a one-motor Ihara: Besides development and production, are are new and globally competitive? structure, transfer of production operations among
hybrid transmission, for which demand is currently there any other collaborative efforts, for example, in Ogiso: We have rolled out activities in three fields. plants in Japan has been proceeding at a good pace,
growing in Europe. This product combines a motor sales activities? One is the field of automated driving and preventive but we have not started this process for our plants
with our existing automatic transmissions and can be Ozaki: We just started collaborative sales activities safety, which is extremely important and requires outside Japan. We will discuss the matter thoroughly
manufactured by using the equipment already in and have asked sales personnel of each company to deliberate strategies. Specifically, we are discussing and strive to ultimately build an optimum supply
place. We will also devise ways to use the same think about what approach we should take in order to encourage the collaboration between the auto- structure across the world. In the area of develop-
equipment even when there is a change in compo- to encourage customers to use the products of the mated valet parking technology and vehicle dynam- ment of next-generation products, we will take on
nent by refining our production processes. AISIN Group. The entire Powertrain VC is exploring ics control technology, which are mainly promoted challenges of conducting development activities
For EVs and FCVs, we are forging ahead with ways to deliver excellent products, not just power- by Aisin Seiki and ADVICS, respectively, in our under the Hospitality Services Working Group (WG)
development of motors and inverters based on the trains alone but as a system encompassing every- Business VC and exploring how we should translate in collaboration with the ICT & Electronics VC and
knowledge we have accumulated in the field of thing from engines to transmissions. the two into products that will be useful for the adopting new materials, including aluminum and
public. The second is the field of chassis control carbon fiber reinforced plastic. For these purposes,
currently undertaken by Aisin Seiki. Combining we will establish a Development Committee within
chassis control with a brake offers many possibilities. the Body VC to narrow down a list of items that will
Overview of the VC System (Group Companies and Products) For example, suspension control and brake control be developed jointly by the three companies to 14
had been designed separately, and an automaker and promote development in an efficient manner.
Scope of business Members (14 Group companies)
Existing fields (main products) Next-generation fields had combined the two into its vehicles. This is ineffi- Also, we intend to nurture skilled leaders who
cient and precludes new ideas. Thus, we are engag- can take initiative in these cross-company activities.
Art Metal MFG
Aisin AW Industries
Engines Pumps, pistons
Powertrain VC
Aisin Seiki
Aisin Kiko
Aisin AW
Electrification
ADVICS
Aisin AI
Powertrain VC Manual transmissions, ing in an activity to consider a suspension system Ihara: For hospitality services, I hope you will
Drivetrain automatic transmissions, EV/FCV System
transmissions for HVs and a brake system simultaneously, and to offer a strengthen collaboration within the Group and
better packaged solution. The third is the field of increase our capabilities to offer solutions in concrete
Main brakes Drum brakes, disc brakes
Hosei Brake Industry
Safety System VC
Chassis & Vehicle
Automated Valet Parking
brakes. ADVICS had been in charge of this field, but terms by working with the ICT & Electronics VC.
Aisin Seiki
Chassis & Vehicle
ADVICS
Chassis Controlled suspension
Safety System VC Vehicle Dynamics Control electrification of parking brakes has necessitated
Electronic stability control (ESC),
Braking systems
cooperative regenerative braking systems
system development for both disc and drum brakes. ICT & Electronics VC
Controlled brakes are also required to offer higher Uenaka: We assume two roles in our operations,
Shiroki Corporation
System products Power sliding doors, sunroofs
Aisin Sin’ei
Aisin Seiki
Body VC
Body VC Functional parts Door latches, seat frames performance at a lower cost. Since the AISIN Group’s with the Tier 1 role as a primary supplier for auto-
External parts Door frames, door handles, moldings Hospitality strengths lie in electromechanical products that makers, mainly handling car navigation systems, and
Services
combine an actuator and an electronic control the Tier 2 role as a secondary supplier handling
Electronics VC
device, we need to find ways to better integrate a components, such as ECUs for automatic transmis-
Aisin Seiki
Aisin AW
ICT & Electronics Information Navigation systems
ADVICS
Location Based
ICT &
VC Electronic components Electronic control units (ECU), sensors Services
motor, driver and an ECU. Occasionally, we will also sions. In the Tier 1 role, there is an issue of how we
need to collaborate with the ICT & Electronics VC should respond to the evolution of car navigation
* For the overview of the VC System, please refer to the “Message from Top Management” section on Pages 06-11.
and Powertrain VC to reinforce our overall capabili- systems. Our strength lies in that we have vehicle
14 A I S I N G R O U P R E P O R T 2 017 A I S I N G R O U P R E P O R T 2 017 15
Special Feature 1 Virtual Company Presidents’ Roundtable Discussion
Masahiro Nishikawa Hiroshi Uenaka Makoto Mitsuya
President President Executive Vice President
Body VC ICT & Electronics VC Aisin Seiki Co., Ltd.
State of the VC System and Message for the Future
information. In addition, Aisin AW had originally that have become available through higher efficiency Powertrain VC Group Head Office
been handling high-precision map information. We will be allotted to overseas bases, to which we wish Ozaki: I felt certain that the VC System will be Mitsuya: The Group Head Office started discussing
intend to effectively combine these pieces of infor- to add better management capabilities or assign successful when I first addressed employees at the about the VC System with each company around
mation with information equipment and jointly more advanced, strategic operations. The Group launch ceremony in April. As time passes, we will be February of this year. Because there was only a lim-
create new value with automakers. We are also Functions Sector will identify operations that are able to build a heightened sense of unity within the ited time, we received varying opinions about the
looking into the creation of new Business to Business better conducted together in the areas of procure- Business VC. We are very thankful for receiving system at first. But as we explained our aspiration in
(B to B) services. In the Tier 2 role, we are required to ment, logistics, basic research and development, and many inquiries from customers in the powertrain detail, they gradually showed deeper understanding.
offer even higher functionality and quality at lower leverage the scale advantage of the AISIN Group as field. We will work to capture every chance and We would like to set up a positive activity cycle by
costs, and this makes combining our products with an effort to achieve improvement. contribute to the growth of the entire Group. accumulating example cases, which make us feel we
IT systems more important. Along with technology Ihara: The Group Managerial Administration Sector did a good thing and naturally create a sentiment to
development, we will make efforts to change our provides good examples of integrated operations Chassis & Vehicle Safety System VC do more. About five years ago, we had conducted
way of working. This means that within the VC and unified systems of personnel affairs, accounting Ogiso: We at the Chassis & Vehicle Safety System Group collaboration activities. Executive officers who
System, we will assume a “Tier 1.5” role and foster and public relations. On the other hand, the Business VC are also feeling confident. Being able to talk to gathered at that occasion were wearing different
collaboration in undertaking our tasks. VCs and the Group Head Office have their own each other beyond the Group’s corporate borders is company badges, and I asked them to take those
Ihara: Japanese manufacturers are forced into a development, production, products, procurement extremely valuable and is expected to generate a badges off and talk as members of the AISIN Group.
difficult battle in this area, as is the case for semicon- and sales functions, just like before. The VC System great outcome. We have many competitors in the We have only one badge today, and I no longer have
ductors. Does the AISIN Group have a chance to take will not work if we fail to define the clear roles of chassis and vehicle safety field. To prevail over the to ask them to take it off. The entire Group will work
a competitive lead in this area? the Group Head Office and each Business VC. How competition, we absolutely need to transcend corpo- as one team for the future of the AISIN Group.
Uenaka: We can differentiate ourselves by combin- will the Group Functions Sector handle the matter? rate borders and have frank discussions. We will
ing mechanical and actuator-related products, Mitsuya: We are indeed discussing with each facilitate exchange of honest opinions among the Ihara: The VC System is, in fact, an extreme measure
a source of the AISIN Group’s strengths, with ICT Business VC about the roles of the Functions Sector. members of the VC System, draw on their individu- designed to secure the future competitiveness of the
and electronics devices. We aim to channel more We will sort out our operations by first clarifying alities and work with a passion toward our goal. AISIN Group. In the age of great uncertainty, it is
resources into this area and win out over the which operations are better conducted jointly. difficult to attain greater competitiveness through
competition. Ihara: Taking procurement activities as an example, Body VC a work style that exists within the context of conven-
Ihara: We opened the Daiba Development Center in the system of purchasing main components at each Nishikawa: The VC System has been a driver of tional ideas. Thus, the most important objective of
April 2017. What is your plan regarding personnel Business VC and buying items that are suitable for inter-company personal exchange. We will continue the VC System is to reform our way of working and
recruitment? bulk purchase, such as materials and electronic to expand this circle of exchange because we believe increase our competitive edge. The entire AISIN
Uenaka: It takes time to nurture human resources. components, at the Group Head Office is a good, that natural interaction among people creates a Group will strive together to continue to evolve
But we cannot wait that long. We need to cultivate simple example. I hope you can achieve a similar strong system. Currently, the three companies are through trial and error, meet the expectations of
the capabilities of our workforce through mid-career separation of work in the areas of production tackling issues for improving efficiency and utilizing our stakeholders and move ahead to enhance our
recruitment and other means. engineering and development. “extra” resources generated through higher effi- competitiveness.
ciency to expand our business. We will use the VC
Group Head Office System effectively and work steadily toward enhanc-
Mitsuya: For several decades, each company in the ing the appeal of our products and increasing sales.
AISIN Group had conducted business separately.
Taking the opportunity of the launch of the VC ICT & Electronics VC
System, we need to reform this mindset by thinking Uenaka: The VC System has changed the atmo-
what is best for a consolidated group, not for an sphere positively. We had collaborated within the
individual company, and by questioning ourselves if Group in the past, but what differs most from our
our conventional way of working really generates past initiatives is that members are very eager to
value. As a first step, the Group Managerial provide ideas on what they would like to do. We
Administration Sector will create a common platform already have 92 such action ideas. Achieving an
by, for example, standardizing our accounting outcome for each as early as possible will lead to
systems. We will then utilize AI and robotics technol- the generation of new ideas on what to do next.
ogies to automate routine operations and simple We would like to establish such a positive cycle.
analysis and decision-making processes. Resources
16 A I S I N G R O U P R E P O R T 2 017 A I S I N G R O U P R E P O R T 2 017 17Special Feature 2
After undertaking business restructuring in five
Discussion between an Analyst and areas from fiscal 2016 and implementing
Executive Vice President “problem-solving activities” in fiscal 2017, the
AISIN Group introduced a Virtual Company (VC)
What are the System aimed at further raising competitiveness
as it approaches an age of dramatic change.
financial strategies
To explain to shareholders and investors
about the financial measures that will support
the AISIN Group’s growth and evolution, we
that support the welcomed global automobile industry expert
Takaki Nakanishi for a dialogue with Executive
AISIN Group’s Vice President Makoto Mitsuya, who is in charge
of finance. Here we introduce our basic stance,
growth?
policies and strategies concerning finance as
well as the valued insights of Mr. Nakanishi.
Please read this section in conjunction with the “Message from Top
Management” on Pages 06-11 and with “Virtual Company Presidents’
Roundtable Discussion” on Pages 12-17.
Makoto Mitsuya Takaki Nakanishi
Executive Vice President, Aisin Seiki Co., Ltd. Analyst
Takaki Nakanishi
Analyst and CEO, Nakanishi Research Institute, Co., Ltd.
improvement activities? the same products were being produced by multiple Takaki Nakanishi has extensive experience that includes management,
Improving Profitability by Enhancing quality controller and a publishing analyst from both the sell-side
Mitsuya: Maintaining sustainable growth even in an Group companies. (securities companies) and buy-side (fund management companies). Mr.
the Efficiency of Business Nakanishi has been in charge of research in the auto industry continuous-
age of dramatic change is important. We are work- Nakanishi: One benefit derived from the separate- ly since 1994 and has maintained his solid position. He ranked 1st in the
Nakanishi: I have observed the AISIN Group’s ing to improve our profit structure by trimming fixed company system is mobility that is also one of the U.S. Institutional Investor All-Japan Research Team Rankings for the auto
sector for six years running from 2003 to 2008 and was also first in the
growth pattern for 20-plus years and believe the costs and developing high-added-value products Group’s strengths. Nonetheless, I also began to sense Nikkei Veritas Analyst Rankings in the auto and auto parts industry over
the same period. After returning to the sell-side in 2011, he was ranked
Group has steadily achieved solid growth. What will to maintain a corporate structure capable of with- that in many ways you faced issues concerning poor first in 2013 in both the Institutional Investor All-Japan Research Team
be the key points for enabling the AISIN Group to standing events such as the so-called Lehman shock. efficiencies because of this approach. How would Rankings and the Nikkei Veritas Analyst Rankings in the auto industry.
Mr. Nakanishi has authored numerous books including Toyota versus
maintain this growth? Specifically, we aim to realize a break-even point you generally assess this point? Volkswagen—Strongest Company Aims to Be Champion in 2020 (Nikkei
Publishing Inc.) and 2020 “Group of Winners” Automakers (Nikkei
Mitsuya: I believe that improving the profitability of ratio of 80% or lower even with an exchange rate Mitsuya: Regarding the poor efficiencies you men- Publishing Inc.).
our businesses will be the most important point for of $1/¥100. Although we will reduce fixed costs, I tion, we have agency costs (conflicting opinions
allowing the Company to continuously realize sus- should point out that we also need to actively invest among Group companies) and duplications in func-
tainable growth. As indicators of our profitability, we for development in next-generation fields. For this tions sectors and in managerial administration sec- Management indicators and future initiatives
emphasize the operating profit margin, the break- reason, we must decisively eliminate wasteful areas tors. Let me give you an example. Our Group com- Operating Total asset
even point ratio and return on equity (ROE). to realize a balance in the way we allocate funds. panies possess and independently operate the entire ROE profit margin turnover ratio Financial leverage
Profit for the period Profit for the period Revenue Invested capital
In recent years, we have promoted two important Nakanishi: The collaboration of the entire AISIN range of functions such as human resources, legal Shareholders’ equity Revenue Invested capital Shareholders’ equity
activities for improving the operating profit margin. Group is crucial for promoting profit structure affairs and accounting functions. This has enabled
Business
One of these is problem-solving activities for quickly improvements. Carrying out business globally through each company to build systems and frameworks for 3. Capital strategy
1. Improve profitability 2. Enhance efficiency
improving profit margins on any current products numerous consolidated companies and sub-consoli- optimal operations. On the downside, these individ-
Problem-solving Effective use of assets Capitalization ratio:
having poor profit margins, with efforts focused dated companies is certainly a strength of the AISIN ual systems and frameworks are not always optimal activities Reduce duplicate Maintain at 20%-25%
Business restructuring investments
on improving manufacturing. For example, in fiscal Group. Alternatively, I believe that operations through from the broader perspective of consolidated opera- Improvement of (Virtual Company System)
break-even point ratio
2016 one of our products had a negative profit mar- 207 companies lead to a variety of issues in terms of tions and collectively often hindered overall efficiency. • Develop high-added-
value products
gin of 30%, but through problem-solving activities optimization. What are your thoughts on this? We are moving decisively to solve this prob- • Reduce fixed costs
(Group Head Office)
we turned this into a positive margin. The second Mitsuya: Until now, the AISIN Group promoted sus- lem of poor efficiencies. In April 2017, we newly
activity is business restructuring. This restructuring tainable growth by spinning off into separate com- launched the Group Head Office and are consolidat-
Improvement of ROIC Financing with
aims at raising the Group’s competiveness by trans- panies any businesses that attained growth and then ing and standardizing the functions and managerial (return on invested capital) favorable conditions
forming our business structure with the involvement raised its expertise in these particular fields while administration sectors. Moreover, to accelerate the Profit for the period
Invested capital (= fixed assets + inventories)
of other companies in five areas consisting of man- achieving agile operations. However, this approach reduction of fixed costs, we intend to proactively
ual transmissions (MTs), brakes, seat frames, body also had inefficient aspects. Because each company utilize robotics and artificial intelligence (AI). In the
parts and pistons. pursued its own growth, this led to a duplication of functions sector, we will undertake joint procure- administration sector, we will unify human resources
Nakanishi: Could you discuss any numerical tar- human resources, technologies and other resources ment, joint logistics and joint development in the and accounting platforms and promote simplification
gets you hope to attain in the future through these among different companies. A prime example is that field of the Internet of Things (IoT). In the managerial and consolidation to further enhance efficiency.
18 A I S I N G R O U P R E P O R T 2 017 A I S I N G R O U P R E P O R T 2 017 19You can also read
