S

SOCIETY

OCIETY

Contribution to society

Participation in the "White Logistics" Promotion Movement

Voluntary Action," which includes itemized and detailed voluntary

In March 2022, we endorsed the objectives of the "White Logistics"

efforts to improve logistics. To date, approximately 1,658 companies

promotion campaign developed by the Ministry of Land, Infrastructure,

have endorsed the campaign. We have declared the following eightTransport and Tourism, the Ministry of Economy, Trade and Industry,

points as our own initiatives.

and the Ministry of Agriculture, Forestry and Fisheries, and submitted

Supply chain managementa Declaration of Voluntary Action.
The White Logistics campaign aims to address the growing
shortage of truck drivers, secure stable logistics services necessary

Respect for human rights in the supply chain

for people's daily lives and industrial activities, and contribute to the

The Toho Titanium Group promotes respect for human rights infulfill our social responsibility as the operator of an integrated supply

growth of the economy. Through the campaign, we are working to (1)keeping with the United Nations (UN) Guiding Principles on Businesschain by clearly stating respect for human rights and diversity in our

improve productivity and efficiency of transportation, and (2) createand Human Rights. We also understand the human rights described

Code of Conduct, and by requesting our business partners to give thelabor environments that are comfortable for all workers includingin the International Bill of Human Rights and the Declaration onsame consideration to human rights and diversity.

female and elderly (over 60) drivers. Participating companies are

Fundamental Principles and Rights at Work of the International Labour
Organization (ILO) are an absolute minimum to be observed. We will

Detailed information are listed in the Corporate Management Policy page on
our website.

https://www.toho-titanium.co.jp/en/company/principels/

Strengthening linkage and collaboration with business partners
Based on the Guidelines for Business Conduct and Promise to Business Partners (Transaction Principles) within our Fundamental Purchasing
Policy, the Group will strive to build relationships of trust with business partners through fair and equitable transactions as well as legal complianceand environmental conservation.

Fundamental Purchasing Policy
Guidelines
for BusinessConduct

Transparency

We will be open and transparent in our dealings.

7. P roactive use of logistics
companies that are involved in
work-style reforms, etc.
8. Safety measures during loading
and unloading operations

Responsible Mineral Procurement
Our Group's basic policy entails never procuring or using minerals

risk areas (CAHRAs), including tin, tantalum, tungsten, gold, cobalt,with OECD Annex II risk (i.e., [1] human rights abuses associatedand mica. If any risks are found in the supply chain, correctivewith the mining, transportation, and trade of minerals; [2] direct or

actions will be taken.

indirect support for non-government armed groups; [3] illegal acts by

In order to comply with this policy, we request that our

public or private security forces; [4] bribery and misrepresentation ofbusiness partners understand the Group's thinking and commit

mineral origin; [5] money laundering; [6] non-payment of taxes, fees,

to responsible mineral sourcing. We will also disclose appropriate

and mining rights fees to the government) in conflict areas and high-information about these efforts to all stakeholders.

Fairness		We will base our selection of suppliers on fair evaluation.

Coexisting with local communities

Legal compliance		We will comply with all applicable laws and regulations, and will conduct our business not only inaccordance with the letter of individual provisions of laws and regulations, but also with a respect forthe spirit of the law.

Our Group believes that, as a member of the local communities

we are making various social contributions and supporting local

Environment conservation	We place importance on the environment and actively promote "Green Purchasing" practices.

where our business sites are located, building relationships of trust

revitalization in each region so that we can continue to develop

Mutual trust		We will build relationships of trust with our business partners through transactions based on equal
partnership.

while maintaining harmony and cooperation with local communities

together with local communities as a corporate citizen.

Ethics		We will maintain appropriate relationships with business partners based on strict ethical viewpoint.
We will sever all relationships with Antisocial Forces and conduct sound purchasing activities.
We will not engage in any transactions that exploit an advantage of ours to the unfair advantage ordisadvantage of others.
Promiseto Business
Partners(Transaction
Principles)

required to formulate, declare, and implement a "Declaration of(Excerpt)
1. Proposals for and cooperation inlogistics improvement
2. Separation of work tasks otherthan driving
3. Improvement of facilities on thepart of shippers
4. Modal shift to ships and railroads
5. Introduction of fuel surcharges
6. Consideration of legal compliancewhen selecting contract
counterparts

Fair opportunity for entry		We will provide fair entry opportunities for those who wish to transact business, and we will respondsincerely to trade offers.
Fair evaluation		Selection of suppliers will be based on fair evaluation of quality, price, delivery time, and performance.
Confidential information management	We will strictly manage and maintain the confidentiality of information obtained for administrative
purposes in the course of purchasing transactions.
Clarity of reasons for selection	For business partners who were not selected for orders due to competing inquiries, etc., we will, uponrequest, clarify the fact that they were not selected and the reason for not being selected.

Green Procurement

Initiatives to eliminate Antisocial Forces

As part of our efforts to protect the environment, we actively

We are continuously working to eliminate Antisocial Forces. Our

promote "Green Procurement" practices. We strive to do business

Code of Conduct emphasizes fair trade and the promotion of soundwith partners that are proactive in their environmental responses

business practices. We also conduct surveys of business partners on

including reduction of the environmental impact related to thethe status of implementation of measures to prevent involvement with

manufacture, use, and disposal of their products and the provision

Antisocial Forces, and we follow up with them on an ongoing basis.

of services to our Group as well as purchasing of goods that haveless environmental impact on the global environment.

Procurement BCP Initiatives

Fair Trade(Activities for compliance with the Subcontracting Law)business shutdown due to natural disasters such as earthquakes,

The Group considers the deepening of relationships of trust withare advancing the diversification and multiple decentralization ofbusiness partners to be extremely important, and we are particularly

procurement sources to minimize procurement risks.

We are working on procurement BCP to prepare for the risk ofwindstorms, and floods, as well as fire and power outages. We

is essential for sustainable development. Based on this thinking,

Fostering a Toho Titanium Mindset
Toho Titanium Soccer Club
Established in 1955, the Toho Titanium Soccer Club has a long history
and has players who have played in the professional J League andvarious other categories. Players work at either the Chigasaki Plant or
the Yokohama Headquarters, and all are employees who balance workand soccer. Since 2002, we have planned and managed the boys' andgirls' soccer tournament "Toho Southern Cup," and since 2016, we havecontinued to support the healthy growth and development of children
through soccer by holding soccer clinics in the Chigasaki and Samukawa
areas, and we are loved as a community-based team.

C ontributing to the Local Community throughProactive Communication
In addition to inviting local elementary, middle school, and high school
students to our company on plant tours, our employees also provide
classes at local high schools. While contributing to children's education, theprogram provides an opportunity for children to deepen their understandingof our business and safety initiatives.
The Toho Titanium Soccer Club also promotes harmony with the local
community by organizing monthly community cleanups by staff and players.

committed to strict compliance with the Subcontracting Law,
engaging in ongoing measures to ensure the proper and smooth
operation of subcontracting transactions.

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I N T E G R AT E D R E P O R T 2 0 2 3

38

SOCIETY

Appealing workplace

Diversity and inclusion
Our Group aims to achieve diversity and inclusion in the workplace.

Message from a Human Resources and Labor Affairs Officer

We will enhance the competitivenessof our human resources and organization
toward "Vision for 2030".

Training to Promote Active Participation
by Women

TOPIC

Based on the Law Concerning the Promotion of Active Participation
by Women in the Workplace, our Group has formulated a General

After spending 15 years in charge ofvarious development tasks for material
manufacturers in France and the UnitedStates, I spent 6 years in Japan inmanagement work at a public agency.
We are currently focusing on developing
new materials with 3 members,
including new graduates and mid-careerhires.

Business Owner Action Plan to support the development of the next
generation.

Senior Employees in Action
From April 2023, we have extended the retirement age from 60 to
65, to encourage senior employees with extensive work experience

Akira Inokawa
Director and Executive Managing Officer
General Manager, Corporate Management Division

The Toho Titanium Group has envisioned a medium- to long-term growth strategy, setting goals for each division andimplementing various measures described in "Vision for 2030" and "FY2023-2025 Medium-term Management Plan"
formulated in May 2023. In order to achieve these medium- to long-term management goals, securing and developing
human resources is a major key for all departments. Recognizing that our human resources are the source of thecompetitiveness of our business, we have been proceeding with our initiatives on each theme toward "creating an
attractive workplace", which is one of our four materialities (important issues). The themes are: "Improving Industrial
Health and Safety in the Workplace", "Diversity & Inclusion", "Creating a Comfortable Work Environment", and "Human
Resource Development".
Moreover, in order to achieve sustainable growth, we are continually working to improve employee engagement.
We have conducted an "Employee Satisfaction Survey" once a year since FY2022, with the aim of investigating andunderstanding what employees think about company management, their current work, the work environment, andother areas. By repeatedly performing identification of issues and implementing countermeasures through regularmonitoring, we aim to make effective improvements and foster a culture of continuing to take on challenges without
being bound by preconceived notions.
On the other hand, we will promote productivity improvements by reducing labor through automation andmechanization at manufacturing sites. The long-term goal of "Vision for 2030" is to improve labor productivity by 30%.
We will accelerate the creation of innovation by improving the work environment and creating time for employees totake on more creative tasks. We will actively promote the development of DX human resources and aim to raise thelevel of DX literacy throughout the company.
As competition to acquire talent continues to intensify, we will focus on improving our work environment andhuman resource development system so that our employees can find their work attractive and rewarding. We hope tosecure excellent human resources and support the expansion of human capital by proactively appealing to people whoare interested in working for our Group.

Improving Occupational Health and Safety in the Workplaceand specialized knowledge to continue working with high motivation
physical strength of our senior employees than ever before, andcreate an environment where they can continue working for a longtime with peace of mind.

Employment of People with Disabilities
Our company is working on recruitment activities and improving
the work environment, targeting to achieve the nationally mandated
legal employment rate of 2.3% with a view to responding to future
increases in the legal employment rate.

Creating a supportive work environment
We have introduced a system that allows each employee to flexibly

to maintain good labor-management relations through dialoguechoose a wide range of work styles according to their individual life

between labor and management based on the labor agreement.

experiences and the stage of life they are in. A Parental / Nursing
Care Leave System is also in place to help employees balance workand family life, as well as a Flex-Time System and an Accumulated

Training is provided to employees and managers for early detection andDevelopment and Operation of Various Systems

prevention of mental health problems. In addition, we have established

SystemLimited-Area
Employee
Reemployment
System
Accumulated
Annual Leave(holidays)
Dormitories andCompany Housing(including rentals)
Recreation
Subsidies
Refreshment
Bonus

Key Features
Work location can be restricted within a specified area.
Reemployment is made available within a specified periodof time in the event of unavoidable discontinuation due tochildcare, nursing care, spouse's transfer, etc.
Annual paid leave days which ordinarily lapse and are ineligible
for carryover can be accumulated separately
Enables moving in with low out-of-pocket expenses (subject tooccupancy conditions)
Provides semi-annual recreation subsidies to employees andothers to promote fellowship in the workplace
Refreshment Bonus for employees completing 10 years and20 years of service

Consultation with Labor Unions

We implement a variety of measures to maintain and improve the

The Group has a stable labor-management relationship with theand achieve zero work-related accidents.

health of our employees, such as providing various types of health

JAM Toho Titanium Labor Union, and through dialogue about once

maintenance support and regular physical fitness tests.

a month, we negotiate and discuss various management topics andI N T E G R AT E D R E P O R T 2 0 2 3

a mental and physical health consultation service, provide guidance on
improving lifestyle habits, and focus effort on information dissemination
and awareness-raising activities through various in-house media.

Better treatment
As a result of negotiations with the labor union, the following systems
were mainly revised. In the FY2023 spring offensive, we raised
the base salary and increased allowances to improve employee
satisfaction and strengthen recruitment competitiveness.
SystemMaternity nursing
leaveUnaccompanied
assignment

in a variety of activities to ensure a comfortable working environment

39

Mental Healthcare

Annual Leave system in case of illness, etc.

good health at all times and work to the best of their abilities.

We also believe that it is an important matter in management

Although overcoming the languageDavidbarrier is very challenging, I am very
Lechevaliergrateful to have been accepted by
Chief Engineer, Technology
my colleagues just the way I am.
Strategy Department,
Moving forward, I would like to makeTechnology Strategy
recommendations on areas that
Headquarters
need improvement from a diversity
perspective, such as information
on organizational rules that is unique to Japan. I valuecommunication by carefully conveying messages and receiving
them well. I will be exploring the practical application of newtechnologies while increasing the capabilities of my team bycollaborating with internal engineers and external partners.

beyond the age of 60. We will pay more attention to the health andBased on our basic policy of prioritizing safety, our group is engaged

to create an environment in which all employees can maintain

Enhancing our abilities as a teamusing diversity as our strength

employee working conditions based on mutual trust. We will continue

Relocation allowance
Dormitory /company housing
Accumulated Annual
Leave (holidays)

I N T E G R AT E D R E P O R T 2 0 2 3

Revision Details
Increase in number of days, relaxation of conditions forapplication
Increase in the amount of allowance for unaccompanied
assignment and transportation expenses for returning
home
Increase in relocation allowance
Relaxation of conditions for dormitory entry and double
loans
Relaxation of conditions for application

40

G

Appealing workplace

Human Resource Development

inculcate the abilities and knowledge required for each position,
as well as a short-term study-abroad program and selective

New Employee
Training

are available to improve the skills of each and every employee.

New
Employees

education to foster global and innovative human resources fromthe earliest stages. In addition, various self-development programs

New Employee
Training

Selective education

Selective education

Business Task
Presentation Meeting
Graduate Employee
Mentoring System

New Career Plan

Proposal presentation meeting

Mental healthcare

Selective education

Strengthening Corporate Governance
Correspondence Education System

plans. At the same time, we have introduced group education to

Proposal presentation meeting

Training to promote active participation by women

employees and creating custom-made guidance and training

New Employee
Training

Selective education

Online English conversation

human resources development by assigning instructors to new

Junior /Mid-ranking

knowledge and foster awareness, we are engaged in systematic

New Employee
Training

Proposal presentation meeting

TOEIC Examination

In addition to on-site skills training to pass on and acquire
advanced technical skills, and individual theme training to acquire

New Employee
Training

Short-term study abroadbase to support our medium- to long-term business strategies.

Next-generation human resource development

development plan to strengthen and establish a human resource

Management
Employee
Development
Training Plan

our competitiveness. We have formulated a human resource

Solidifying our management foundation
Medium- to Long-term Human Resource Development Plan(excerpt)
Management
Positions

Our Group believes that human resources are the source of

OVERNANCE

Basic Thinking
Based on our Corporate Philosophy, the Company strives to enhance corporate governance in accordance with the following basic policies inorder to achieve sustainable corporate growth and increase medium- to long-term corporate value, and to ensure transparent, fair, timely, andaccurate decision-making and appropriate business execution in light of our business characteristics and the surrounding environment.
1	We will respect the rights of shareholders, ensure the substantial equality of shareholders, and strive to create an environment for the appropriate
exercise of rights.
2 We strive to cooperate appropriately with all stakeholders.
3	In addition to disclosure in accordance with laws and regulations, we work proactively to provide information beyond that required by law in efforts toensure transparency.

High-school
Graduate Employee
Mentoring System

4 The Board of Directors and the Auditing Committee members will:
i Clearly articulate the major direction of corporate strategy, etc.
ii Create an environment that supports appropriate risk-taking by senior managementiii Effectively supervise management (including Executive Officers) and Directors
etc. We will strive to appropriately fulfill our respective roles and responsibilities.

We also carry out 360-degree evaluations in managerial
positions with the objective that the person being evaluatedbecomes aware of the gap between their own perceptions and5	We strive to engage in constructive dialogue with shareholders to contribute to sustainable growth and medium- to long-term enhancement ofcorporate value.

of those around them, which leads them to change their behavior
and improve their management skills.

Corporate Governance Structure (as of June 20, 2023)

TOPIC

General Meeting of Shareholders

Supporting the career advancement of younger employees while improving
my own expertise

Board of Directors (Chairperson: President and Representative Director)

Manager,Internal Audit Department

Reporting
Supervisory
Committee for
Conflicts ofInterest among
Group Companies

When I just became a manager at my previous job, there weren't many female managers, and I remember
working 24 hours straight, within and outside working hours, just to be physically "on par" with men. But working forthis company, I feel that I can enjoy a good work-life balance. Also, I have never felt excluded due to gender and otherforms of discrimination. I feel that there is a good openness in the workplace that respects experience and knowledge.

Findings(report)Personnel andCompensation
Advisory
Committee

Monitoringand supervision

Directors who are not Audit and Supervisory Committee Members: 6 (including 2 outside)
Directors who are Audit and Supervisory Committee members: 3 (including 2 outside)

In 2021, I joined our company's Audit Department as a mid-career employee. I gained experience in secretarial
work in my 20s, learned from management how important it was to understand the mechanics of numbers, andtransitioned to an Accounting position. While gaining practical experience, I obtained the qualification of a US
Certified Public Accountant. Since then, I have been engaged in internal control and audit work for over 10 years.
Internal audits are carried out voluntarily by each company in accordance with the "International Standards for theProfessional Practice of Internal Auditing", so as a professional, I strive to brush up on my knowledge every days.

S i n ob u
Ka wa n oAppointment and dismissal

Appointment and dismissal

ReportingExecutive Committee

Judgment

Personnel and Compensation Advisory Committee

or whether they are new graduates or in their mid-careers. We areOver the past 5 years, the percentage was 22.4%.

The Committee consists of all Independent Outside Directors, as wellas the Representative Director and other Directors appointed by the
Representative Director, and is chaired by the President. The Personnel
and Compensation Advisory Committee meets at least once a year
to discuss and report to the Board of Directors on matters related topersonnel and remuneration of Directors and senior management, as wellas to evaluate the effectiveness of the Board of Directors.

job seeker's field of expertise and future career vision, we are able

FY2018to prevent early post-recruitment job turnover that can result from ill-

FY2019FY2020

FY2021

FY2022For fiveyears

matched assignments. In addition, our 5-year retention rate for new

Male

7

5

10

9

14

45

university graduates is 96%.

Female

1

3

3

2

4

13

12.5%

37.5%

23.1%

18.2%

22.2%

22.4%

8

8

13

11

18

58

In accordance with the Law Concerning the Promotion of Active
Participation by Women in the Workplace, we have set a target of

41

Female ratio
Total

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Audit

Audit
Internal
audit

Audit Department(Internal Audit Department)

LinkageIn order to clarify the structure of responsibility in the management
organization and to speed the execution of business operations, we haveintroduced an Executive Committee system under which certain businessexecution authority is delegated to Executive Committee members.
The Executive Committee consists of the President and Representative
Director (President), Executive Officers and Full-time Auditing Committee
members, and other persons appointed by the President.
Regular Executive Committee meetings are held several times
a month, or as needed, at which the President instructs Executive
Committee members and communicates policies and resolutions of
the Board of Directors. Executive Committee members report to the
President on the status of business execution.

number of female employees and quickly develop female managers.

and research institutes. By providing work experience based on the

Linkage

Executive Committee

hiring 20% or more female employees in order to steadily increase the

Number of Employees Hired in the Past 5 Years(new graduates and careers)

Accounting Auditor

The Board of Directors deliberates and decides on growth strategies,
management plans and other corporate strategies to ensure the Company's
sustainable growth and increase its corporate value over the medium to longterm. To monitor and control risk-taking, we have 4 Outside Directors (all 4of whom are Independent Directors) in the 9-member Board of Directors.
Each of them monitors the operation of Directors from a professional,
independent, and objective standpoint. We maintain a system to ensure thatinternal controls and risk management are fully functional.

who can play an active role globally, regardless of gender, nationality,

the-job trainings and observations of actual equipment at factories

Linkage

Board of Directors

At Toho Titanium, we are striving to secure talented human resources

particularly focusing on expanding internships that mainly include on-

Directors who are Audit and Supervisory
Committee members: 3(including 2 outside)(Chairperson: President and Representative Director)

Executive Officer

Approach to Recruitment

Audit and Supervisory Committee

Deliberative decision[Business execution]

We are currently in a transition period within the company, as we are setting up a system that allows for various
ways of working and building career plans. In order to advance in your career, I believe it is important to create yourown "image of a manager" by getting in touch with the experiences and ideas of your predecessors, and discussing
your concerns through continuous education for managerial candidates and opportunities to interact with managers
from other departments. Moving forward, I would like to actively support young colleagues so that I can somehow
give something back for the support I have received from so many people.

Audit

Group Company Supervisory Committee
for Conflicts of Interest
Regarding important transactions between the parent company groupand our Group, deliberations and considerations are held once a year,
and as necessary, from the perspective of protecting the interests ofminority shareholders. The members of this committee are independent
outside directors, and a summary of deliberations and results is reported
to the Board of Directors.

Audit and Supervisory Committee
2 of the 3 Audit and Supervisory Committee members are Independent
Outside Directors, who fulfill their responsibilities through monitoring andverification from an independent and objective standpoint. Audit andSupervisory Committee members include qualified accountants, who
use their high level of expertise to conduct operational and accounting
audits and provide active and appropriate opinions at Board of Directors
meetings. Full-time Audit and Supervisory Committee members attend
important meetings and have access to all information regarding internal
proposals and reports. Audit and Supervisory Committee also conduct
audits in full cooperation with the Accounting Auditor and the Internal
Audit Department.

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