Management Philosophy

"Have a broad perspective and make a positive contribution to society by providing superior goods and services ahead of the time," is the management principle of our company. We aim to serve not only our stockholders, business partners, employees, the regions where we do business, but the entire world.
Further, to win the confidence of our customers and the society, we've introduced a risk-management system based on compliance management and are promoting greater transparency and fairness in our business activities.

Corporate Strategy and Issues

This spring, in order to be the excellent company of 21st century, our corporate group reviewed our conventional five-year plan, and settled on a new "Medium-Term management scheme" effective until 2005.
Currently, the focus is on the realization of the plan. We regard "the early development of global supply system" as the basic strategy best suited to our long-nurtured automobile parts business. We are also in the process of reassessing our non-automotive interests in solar power and seating, utilizing our combined power as a group, and actively and steadily implementing a variety of new policies based on the following management strategies:
(1) Increasing Sales and Maximizing Profit Potential
As we maximize sales by developing new technology and products while reducing cost, a structural reform is also on its way based on labor cost-cutting, efficient capital investment, and debt reduction. Through this and other efforts such as the reduction of fixed cost, we at Shiroki are working at full force to fast the company to profit-generation.
(2) Strengthening our Group Companies
Profit return to stockholders as the number one priority and the basic strategy, we set dividend distribution and dividend yield increase as the objectives for the complete independence of our group companies. Furthermore, we are continuing to consolidate our corporate group with "selection" and "concentration" as our keywords, and we are developing business activities that boost our group's combined powers.
(3) Reassessing our Non-Automotive Interests
Alongside the progress we're making toward strengthening our sales base and earnings potential by narrowing our seating business developments to the environmental and rail sectors, we are working with the mid- and long-term vision in pursuit of establishing the alternative mainstay to railway seating.
As for solar power business, we have been concentrating our resources on environmental products utilizing thermal energy. The unique solar collection methods secured our superior position in the field, but as diversification continued, solar power systems based on light energy became the mainstream, and we are reevaluating our operation on that basis.
(4) Extending Global Operations
When it comes to the automotive parts business, we are in the process of building global supply system for our five major products and striving to be the manufacture of the world number one product. Regionally, along with strengthening our North American operations, we are not only making original advances as in the establishment of Thai and Chinese divisions, but are also considering and promoting joint operational developments with other makers.
(5) Pursuing Cost Competitiveness
In order to reduce the gross cost in every region, of every car model, of every unit, and every part, we are doing away with the old barriers in every process from development and supply to production and distribution, reevaluating costs, and promoting standardization.
(6) Advancing Brand Power, Product Development, and Technical Development
We are developing new, world-class products and technology to further increase the competitiveness of our five major products (seat recliners/adjusters, wind regulators, door sashes, locks and hinges, and molding) and modularize the whole system, including all associated peripherals.
In this way, we are working toward increased brand power.

Corporate Governance

Social responsibility, both in terms of awareness and practice, is becoming ever more important with forces like globalization, environmental concerns, and IT driving the management climate change. Under this circumstance, we recognize the importance of firm corporate governance for stronger group management, and are promoting transparent and fair management from organization level.
In addition to bodies designated by law such as AGM, the Board of Directors, auditors and accounting auditors, compliance structure and internal auditing system are being prepared to check corporate activities from both legal and ethical aspects. Out of fourteen board members and four auditors, two board members and two auditors are from outside the company. An internal audit unit ensures compliance and provides asset management and other risk-centered management that extends to group companies.

Relationship with Stakeholders

Our company is one member of the Tokyu Group, a group that is centered on the Tokyu Corporation. We manage our interests according to Tokyu Group's managerial principles and strategies.
For our automotive parts business operations, we promote our manufacturing activities in accordance with the strategies of the Toyota Group, which, centered on Toyota Motor Corporation, makes up approximately 60% of our total sales.