Management Capital

THK generates new value and solves social challenges by effectively making use of the various types of capital it has established since its founding. We will continue to strengthen each type of capital in order to further bolster the foundation of our business.

Related material issues

Strengthening of a sustainable value creation platform

Decarbonization and realization of a recycling-oriented society

Creating an affluent society and solving social issues through innovation

Realization of a diverse and meaningful work environment

Strengthening of a sustainable value creation platform

Decarbonization and realization of a recycling-oriented society

Our philosophy

In recognition of the impact that changes in our external environment have on our business, we consider it integral to the continuation of our business to secure the necessary capital for a sound financial base and investments in future growth. Internal reserves are determined based on a balance between shareholder returns, investments in growing fields, and maintaining a sound financial basis.

Continuing to increase productivity
- Strengthening individual skills
- Increasing machine utilization: upgrading equipment and promoting automation (trailblazing)
- Seeking out precise materials that are easy to process
- Effective use of systems

Guided by the corporate philosophy of providing innovative products to the world and generating new trends to contribute to the creation of an affluent society, we continually create original products as a company focused on creation and development.

The contributions of each employee are what enable us to continuously grow and generate value as a company focused on creation and development.

We establish relationships of mutual trust and strengthen the foundation of our business operations by maintaining a dialogue with our stakeholders and conducting related activities.

To minimize the negative impacts of our corporate activities and strengthen the positive, we work to generate shared value in terms of sustainability through efforts that are optimized for everyone’s benefit, not just one set of interests.

Strengths

Strong cash flow generation
Establishing a net cash position and maintaining a sound financial basis

Ability to adapt to changing customer requirements and user trends with a flexible, global production structure
Manufacturing made-to-order products to meet customer requirements
Producing products with a low friction coefficient to reduce energy consumption

Ability to provide individually optimized products based on our expertise and experience in achieving smooth, high-precision linear motion in the rolling guide components of machines and an extensive foundational platform

Training and support aimed at developing internal talent (data utilization training and international trainee system)
Actively supporting the development of external talent (THK Education Outreach Program, internship program for international engineers, and cooperating with government projects)

Continuing activities aimed at sustained future advancement of Japanese industry, such as our EntSherpa technical support service for start-up companies

Using our proprietary rolling technology in linear motion components to reduce consumption of electricity and lubricant compared to conventional sliding motion

2023 data

Equity attributable to owners of the parent
Total: ¥357.2 billion
Ratio of equity attributable to owners of the parent: 64.2%
Credit rating
- Japan Credit Rating Agency (JCR)
  A+ (issued Dec. 1, 2023)
- Rating and Investment Information (R&I)
  A+ (issued Dec. 1, 2023)
Capital investments: ¥28.7 billion

* Investments in future growth: Approx. ¥170 billion (property, plant, and equipment investments made during the five-year period from 2022 to 2026 only)

Capital investments: ¥28.7 billion
Production facilities: 12 in Japan, 6 in the Americas, 4 in Europe, 6 in China, 9 in Asia and other regions

R&D expenses: ¥5.6 billion
Intellectual property holdings
- Registered: 2,487
  (Entire THK Group)
- Published: 403
  (Entire THK Group)
R&D facilities: 3
(Japan: 1, Europe: 1, China: 1)

Training time: 30.75 hours/person
Training costs: ¥21,949/person
Employees certified with National Trade Skill Test & Certification (Production departments at THK and Group locations in Japan)
- Male: 51
- Female: 13

Interactions with shareholders and investors
- Financial results briefings: 2
- Interviews with institutional investors: Approx. 270
- SR meetings with major shareholders: As appropriate
Supplier visits
- Sustainability-related: 2
- Materials-related: 7
Industry-academia-government collaborations

Solar power generated: 10,875 MWh
Recycled volume: 18,888 tons
Zero emissions result: 0.12%

Future challenges to address

Active and appropriate allocation of funds into investments to increase returns (profit levels) as part of our ROIC in both the industrial machinery and automotive and transportation businesses as we engage with diverse areas of medium- to long-term growth

Reducing CO₂ emissions and effectively utilizing renewable energy
Energy-saving activities
Promoting DX activities

Further cultivating our core technology of rolling machine components and developing new products
Developing (IoT) service to visualize component status based on extensive performance data
Turning pioneering products in new fields into lines of business

Ratio of women in management: 3.0% (end of March 2025)
Initiatives to achieve severity rate of 0.01 or less (2026)
Incident rate of 0.50 or less (2026)

Strengthening Group governance structure
Initiatives to increase compliance awareness
Strengthening risk management (BCP and information security) structures

Initiatives to achieve medium- and long-term targets for carbon neutrality
- 2030 CO₂ emissions: 50% of 2018 levels (Scope: THK Japan and Group companies in Japan)
- 2050 CO₂ emissions: Net-zero (Scope: Entire THK Group)