Message from the President
As of October 2, 2018
Review of financial results for FY2017 (Seventh fiscal year)
The financial results for the fiscal year ended March 31, 2018 were: net sales in the amount of ¥219.8 billion (year-on-year increase of ¥13.7 billion), operating income of ¥14.3 billion (year-on-year decrease of ¥0.1 billion), ordinary income of ¥14.6 billion (year-on-year increase of ¥0.2 billion) and net income attributable to owners of parent of ¥11.5 billion (year-on-year increase of ¥1.8 billion). Although the plan at the beginning of FY2017 had anticipated a temporary decrease in the sales of non-mass-produced items and thus projected a year-on-year decrease in both sales and profits, we managed to post increased sales as well as profits, as a result of net sales being pushed up by brisk sales in China and the European region, combined with the impact of the exchange rate. The G-TEKT Group is currently forging ahead with its medium/long-term growth strategy, in which the targets set for the consolidated financial results for FY2021 (11th fiscal year) are ¥300 billion in net sales and ¥20 billion in operating income. We were able to make a smooth start in FY2017, the first year of the three-year Medium-term Plan, which is regarded as a period of preparation for achieving these targets.
What are CSR Activities for G-TEKT?
In recent years, expectations placed in corporate social responsibility (CSR) have become higher and higher. Such responsibility cannot be fulfilled without healthy corporate management. We believe that, namely, CSR activities essentially consist of a cycle in which contributions are made to solve social issues through core operations and such contributions result in an increase in corporate value.
G-TEKT’s corporate slogan “Shape the Future” indicates our approach to fulfilling our responsibility towards realizing a sustainable society while achieving sustained growth ourselves.
In the core operations of G-TEKT, which is an automotive body manufacturer/distributor,reduction of weight and improvement of rigidity of automotive bodies that lead to better fuel efficiency is an important theme in terms of environmental conservation. Even in the trend towards electric vehicles (EV), in which internal-combustion engines are replaced with motors, reduction of body weight is indispensable for increasing the distance to empty.
G-TEKT’s basic stance on CSR activities is to contribute to the solution of the social issue of environmental conservation and realize corporate value and social value simultaneously, in pursuit of advanced technologies that shape the ideal automotive body.
Four material issues that have been identified
In 2016, G-TEKT identified the following four material issues for the purpose of understanding the social impact of its business activities and managing them in the context of CSR: “Enhancement of corporate governance”; “Talent development”; “Development of environmentally-friendly products and technologies”; and “Environmental management”.
“Enhancement of corporate governance” is mandatory for the sustained growth of a company. “Development of environmentally-friendly products and technologies” is the core element of social value to be realized by G-TEKT. “Environmental management” is a duty that must be fulfilled by the manufacturing industry. G-TEKT is working to address each of these issues as a matter of high priority. Among the four material issues, “Talent development”—which involves training of staff who will play the principal role in dealing with these issues—is a theme on which most of our efforts are currently focused.
As part of the “Human resources innovation” based on its medium/long-term growth strategy, G-TEKT has reviewed its personnel evaluation system and adopted a new talent development program. In addition, we will promote improvements in productivity per employee from FY2018 onwards. This will not be limited to improving the operational efficiency of production sites and technological development; it will also involve making the respective roles of all employees more sophisticated,including those of the administration division. Employees will be given support at the company level to make self-improvements by utilizing the extra time created as a result of higher productivity, so that it will lead to the development of talent for the “creation of new value”.
Process for Identifying Material Issues
We believe that the G-TEKT Group should engage in business activities while understanding the social impact of its business activities, managing the possibility of having such an impact as well as controlling the impact itself. Based on such view, we identified the material aspects as of 2016 in consideration of the characteristics of G-TEKT’s business, while seeking the opinions of stakeholders. We have organized and enhanced the method of managing material issues that have been identified, and integrated them into the policies for the third Medium-term Plan.
Four material issues that have been identified
Enhancement of corporate governance
We recognize that in particular, the enhancement of the Group’s governance and the maintenance of a sound governance structure are extremely important issues for G-TEKT, a global corporation with affiliates all over the world. Given this, in addition to the periodical reviews of states of governance structures in our domestic and overseas subsidiaries by using a checklist, etc., we share issues and plan to implement improvement measures between the headquarters and those subsidiaries, with the goal of maintaining and enhancing the level of governance.
Development of environmentally-friendly products and technologies
Automobiles created from G-TEKT’s business are one of the products that require utmost consideration for the environment. In particular, the fuel efficiency of an automobile is greatly influenced by its weight, so reduction of body weight is a major challenge. At G-TEKT, we manufacture products with a low environmental burden by reducing the body weight without compromising its performance by applying G-TEKT’s proprietary design concepts and weight reduction technologies.
A company cannot grow without growing its people. We put a great deal of effort into company-led talent development at G-TEKT, where various talent development programs are available for all employees from new to experienced ones. To be a company that undergoes sustained growth and evolution, G-TEKT is committed to treating each and every employee as an individual.
In order to realize a sustainable society, the task of tackling climate change risks is a major corporate social responsibility. G-TEKT not only proactively engages in initiatives to reduce greenhouses gas (GHG) released through its businesses in a systematic manner, but also endeavors to reduce the environmental burden in the value chain.
CSR issues in future business operations
G-TEKT’s global network currently consists of 21 subsidiaries/affiliates, 29 plants, one R&D center, two R&D facilities and two research offices in Japan, China, Asia, North and South Americas and Europe (as of the end of May 2018). For G-TEKT, which is seeking to further expand its global business operations in the future, we recognize that the priority issue in the context of CSR is the “enhancement of Group governance”.
In FY2017, the in-house Compliance Committee played a central role in establishing the “Global Fundamental Policies on Compliance”. In FY2018,we will build a robust Group governance structure required of a global enterprise by reviewing rules and regulations at each overseas business location in accordance with the “Global Fundamental Policies on Compliance”.
Another CSR issue to be addressed by G-TEKT going forward is the “enhancement of information disclosure”. We intend to proactively disclose not only financial information but also information in the non-financial domain that covers corporate activities in a comprehensive manner, in order to improve the transparency of management and build a strong relationship with stakeholders based on trust.
Relationship between G-TEKT’s business activities and Sustainable Development Goals (SDGs)
The United Nations-led Sustainable Development Goals (SDGs) set for 2030 are regarded as a benchmark that we should place importance on when portraying the future vision of G-TEKT. As described at the beginning of this CSR Report, we will fulfill our responsibility towards realizing a sustainable society while achieving sustained growth ourselves, in accordance with our corporate slogan “Shape the Future”. G-TEKT’s ideal way to solve social issues is in consistent with creation of the future sought by SDGs.
SDGs consist of 17 goals set on a field-by-field basis, as well as 169 targets (to measure the level of achievement), but not all of these goals are within the scope of efforts to be made by companies that have adopted SDGs. G-TEKT believes that it can help achieve SDGs by realizing a number of highly relevant goals through its efforts in tackling the aforementioned four material issues. In particular, goals such as “AFFORDABLE AND CLEAN ENERGY”, “DECENT WORK WITH ECONOMIC GROWTH”, “INDUSTRY, INNOVATION AND INFRASTRUCTURE”, “RESPONSIBLE CONSUMPTION AND PRODUCTION” and “CLIMATE ACTION” may be deemed to be highly relevant. In this CSR Report 2018, we indicated the link between such SDG goals and our business activities.
G-TEKT will continue to meet the expectations of all our stakeholders at all times as a company that “shapes the future”.
To Our Stakeholders
The G-TEKT Group has been issuing the CSR Report since 2015 for the purpose of disclosing information to its stakeholders and helping them gain a better understanding of its CSR activities. In this year’s CSR Report, we have made conscious efforts to proactively disclose more information than ever before, in order to improve the company’s transparency. We hope to continue being a trustworthy company by listening to our stakeholders’ opinions and through the proactive execution of stakeholder engagement.
As a global business enterprise, we have also covered the status of many overseas subsidiaries/affiliates’ activities in this CSR Report.
We will continue to help solve social issues through our businesses, and thereby improve our corporate value and achieve sustained growth.
We would like to ask for the continued support of all our stakeholders for our future endeavors.