Management

In an effort to continuously enhance its corporate value, the Company is striving to ensure transparency ofmanagement and compliance, along with the maintenance and operation of an adequate governance framework while reinforcing its risk management framework.

Business Principles

Prioritize ethics and contribute to the prosperityof customers and society as a whole

1. Respond to customers in a timely and speedy manner

Encourage creativity and enterprisingspirit to meet the challenges of the future

4.	Keep a broad perspective and influence each other toward growth

Build trust by focusing on quality first

Corporate Governance

CSR Report

Our philosophy of corporate governanceManagement

16

Corporate Governance

18

Internal Control/Compliance18

Risk Management

18

Information Security

19

Business Risk

Report by Stakeholder

20

With Our Customers

21

With Our Suppliers

22With Our Shareholders and Investors

23

With Our Employees

Actions to Deal with the Environment and Local Communities

15

25

Actions to Protect the Environment

28

Contributions to Local Communities

Code of Conduct

The Group’s business activities are based on the business principles that “prioritize ethics and contribute to the prosperity of customers and society as a whole.” We therefore strive to attainsound corporate management through strengthening and reinforcing corporate governance, fully appreciating the significanceof compliance based on corporate ethics. At the same time, we
review as appropriate our management monitoring system to ensure its conformity to the changes in the business environment
including social environment and relevant legislation.
Corporate governance
We have corporate bodies established in accordance with laws
and regulations as well as the Articles of Incorporation, including
the Board of Directors, Statutory Auditors, the Board of Statutory
Auditors, Accounting Auditors, along with the General Meeting of
Shareholders and Directors. At its regular monthly meetings aswell as extraordinary meetings held when appropriate, the Boardof Directors, which is composed of eight Directors including one
Outside Director, discusses and decides on important management matters such as reports on Directors’ business execution
and matters to be decided solely at the discretion of the Board of
Directors, while supervising Directors’ business execution. In addition, the Company has meeting bodies including the Manage-

2. Tackle all challenges with forethought and creativity
3.	Continuous efforts toward self-development and skill improvement

5.	Act with awareness and pride of a good member of society andbusinessman
Established in June 2001

ment Strategy Meeting and Executive Officer Liaison Meeting.
Through these bodies, critical management matters including
specific matters related to their execution of duties and/or thosesubject to the deliberation of the Board of Directors are reported
to the President by the general managers of business execution
departments, and are deliberated and discussed preliminarily. As
for the matters discussed at meetings, matters subject to thedeliberation of the Board of Directors are decided by the Board of
Directors and other matters are decided by employees with business execution authority through means such as circulars basedon the Management Authority Rules.
Internal audit and statutory auditor’s audit
Action plans and results of internal audits are reported to theBoard of Directors and Statutory Auditors by the Audit Division, as
part of an effort to reinforce corporate governance. Statutory Auditors hold preliminary meetings with Accounting Auditors after
the Ordinary General Meeting of Shareholders to exchange opinions regarding the audit plan. Statutory Auditors receive the results of quarterly reviews from Accounting Auditors both verballyand in writing, and confirm their action plans (if required by thereviews) to be taken at a fiscal year-end audit. Statutory Auditors
also receive the results of the reviews on the fiscal year-end audit
from Accounting Auditors in a statutory document along withverbal reviews. Furthermore, Statutory Auditors are in principle
required to be present at inventory taking or on-site inspection at
subsidiaries by Accounting Auditors.

Toyo Denki Seizo Report 201516

Management

External Statutory Auditors and Outside Directors
The Company has established independence guidelines
regarding independence required for a candidate for its Outside Executive, and appoints Outside Directors and External
Statutory Auditors who have excellent insight in their areasof expertise. Currently, the Company appointed one Outside
Director and three External Statutory Auditors. Note thateach of the External Statutory Auditors is playing a role toenhance audit functions required by laws and regulations
while remaining independent from the Company.
Mr. Hirokazu Chinone, our Outside Director, is qualified asa lawyer and provides useful advice regarding managementin general, drawing on his wealth of experience and specialized knowledge regarding corporate law developed throughout his career.
Mr. Hiroshi Hamao and Mr. Eiichi Suzuki, our External Statutory Auditors, are engaged in the auditing activities for theCompany, drawing on their wealth of experience and broad
knowledge developed in corporate management and service
at a financial institution.
Mr. Toshio Ikeda, our External Statutory Auditor, is a certi-

fied public accountant who utilizes his professional expertisein the area of corporate financial accounting for the Company’s auditing work. Meanwhile, the Company has appointed
Mr. Ikeda as an independent director and registered him as
such at stock exchanges.
Executive remuneration
Amounts of remuneration for Directors and Statutory Auditors are
decided by a resolution at the General Meeting of Shareholders.
Basic remuneration for Directors is a fixed salary while a bonus ispayable as determined by each Director’s contribution to management as well as business results of the Company. Basic remuneration for both Standing and Part-time Statutory Auditors is a fixedsalary without bonus payments.
As of the end of May 2015
Number of
executives
applicable

Total amount of
remuneration(Unit: Million yen)

Directors

8

197

Statutory Auditors(excluding External Statutory Auditors)

2

17

Outside Executives(External Statutory Auditors)

4

22

Category of executives

Note: The number of executives applicable mentioned above includes two Statutory Auditors who respectively retired from their office at the end of the 153rd Ordinary General Meeting of Shareholders, held on August 27, 2014.

Corporate governance framework
General Meeting of Shareholders
Appointments/dismissals

Accounting Auditors

Reporting

ReportingAppointments/dismissals
Legal audit

Statutory Auditors

Directors

Business audit

Appointments/dismissals Reporting on business execution

Accounting audit
Reporting/decisions
Instruction/reporting
Internal audit

Appointments/dismissals

Board of Directors

Reporting

Audit Division

ReportingBoard of Statutory Auditors

Internal Control Oversight Committee
Appointments/reporting(Secretariat)
General Affairs Division(Contact for whistle-blowers)(Contact for legal consulting)

Whistle-blowings

Internal control
The Company views the development and operation of an internal
control system to be an important management issue, and it hasdeveloped an efficient, legal and appropriate business execution
system that is reviewed on an ongoing basis in accordance with
Article 362 of the Companies Act and Article 100 of the Ordinance for Enforcement of the Companies Act.
Principles of compliance
The Company has set “1. adherence to rules,” “2. observance ofconfidentiality,” “3. distinction between private and public matters,” “4. strictness with money,” “5. prohibition of side jobs,” and“6. prohibition of discriminatory and sexually suggestive statements or behavior” as principles of compliance.
Compliance promotion framework
To focus on business principles and fulfill its social responsibility,
the Company has provided all officers and employees with a copyof the Compliance Manual (Toyo Denki Seizo Ethical Standards)
that stipulates its code of conduct. The move is part of an effort tohave the code and the basic rules of work fully known.
The Company has also introduced a whistle-blowing systemthat allows employees to provide information directly to the management. The system is aimed at ensuring that any illegal orinappropriate conduct within the Company is detected at theearliest possible stage and that adequate measures are taken
promptly and as needed so that such conduct is rectified.

President
Management Strategy Meeting
Executive Officer Liaison Meeting
National and Global Group Company Meetings

Appointments/
dismissals

Instruction/reporting

Directors and Executive Officers
Instruction/reporting

Each business department
Oversight

Internal control and compliance

Instruction/reporting

Each Group company

Instruction/
reportingCompliance education
The Company is organizing scheduled and systematic training
sessions based on a compliance training master plan to enhanceknowledge on compliance while promoting a conscious respect
for corporate ethics.

Risk Management
Basic policy
The Company is engaged in developing rules and a framework forrisk management according to the Basic Rules for Risk Management established in August 2006.
Promotion framework
The Company has established the Internal Control OversightCommittee, an advisory body chaired by the President and hassome of its authority delegated from the Board of Directors. It
analyzes and assesses all the risks that exist in the Group anddevelops an effective risk management framework capable ofdealing precisely with the risks of the types and degrees that theGroup is exposed to. The committee specifically reviews the way
such a risk management framework ought to be, and it reports
periodically to the Board of Directors on the recommendations
resulting from its deliberations.
Furthermore, the committee is committed to enhancing theGroup-wide risk management framework in accordance with the
Basic Rules for Risk Management.

Information Security
Basic policy
The Company holds a vast amount of information assets including
information presented by customers related to its businessexecution and confidential information concerning the Group’s
proprietary technologies and its trade. Each Group company istaking various measures in this respect based on an awarenessof shared security under the Group’s Information Security Guidelines, which have been established to adequately manage anduse these information assets.
Information security training
The Company is conducting educational activities to develop
information security awareness among all employees including
various training sessions, some involving the use of educational
DVDs.

17

Toyo Denki Seizo Report 201518

Management

Risk Factors
From the perspective of proactive information disclosure, theGroup intends to disclose a wide range of recognizable risks. Major risks that may affect its earnings and financial position are set
out below. The Group aims for thorough understanding of theserisks in order to establish a necessary risk management framework designed to prevent the risks from materializing or minimize
the impact of risks if they do materialize.
(1) Business activities, business structure, economic trends, and other factors
The Group’s sales heavily rely on the Transportation Systems
and Industrial Systems segments. Its customers conduct business operations at home and overseas. As such, businessclimates and individual spending conditions in different
countries may affect the Group’s business performance.
(2) Production bases
The great majority of the Group’s production bases are locatedin the Kanto area. Production capacity may be severely affected by large-scale disasters in the area.
(3) Intensifying competition
The Japanese market for the Transportation Systems segment
has matured and thus faces intensifying competition. The Industrial Systems segment is under pressure from intensifying
competition for product development. The Group’s businessperformance may be affected by such intensifying competition.
(4) Product quality
Defects in products may link to materialization of a risk that
requires large-scale compensation for damages. The possibility exists that insurance may not be able to cover associatedcosts, which may affect the Group’s business performance.
(5) Product development
With a view to providing attractive products to customers, theGroup applies itself to gathering information about customer
needs and leverages it in the development of new products to
support its future growth. However, delays in the developmentof new products to respond to rapid technological or environmental changes may affect the Group’s performance.
(6) Material procurement
Owing to the fact that the Group’s business has various distinctive characteristics, some of the materials it procures are noteasily available due to factors such as a limited number of suppliers. Delays in supply or discontinuation in production of suchmaterials may affect the Group’s performance. In addition, disruptions to the entire supply chain caused by a large-scaledisaster or other incidents could impact the Group’s operations.

19

Reports by Stakeholder

Moreover, its business may be affected by the fluctuation in
prices of raw materials, notably steel products and copper.
(7) Overseas expansion
The Group proactively pursues the expansion of overseas
operations including the Chinese market. Its performance may
be affected by major changes in situations overseas.
(8) Intellectual property rights
The Group attends to the protection of intellectual property
rights. However, amid drastically advancing technical innovations and accelerating globalization of business, the Group isinevitably exposed to potential disputes with third parties overintellectual property rights. If a dispute occurs, the Group’sbusiness may be affected.
(9) Business alliances
With the aim of business expansion and enhancing competitiveness, the Group proactively pursues various alliances withthird parties. However, if these alliances do not deliver expected results due to a failure in forging favorable relationships
with partners, the Group may face an impact on its performance.
(10) Exchange rate fluctuations
On the back of aggressive expansion into overseas markets,
the Group will inevitably face heavier impact of foreign currency exchange rate fluctuations on its earnings as itincreases foreign currency denominated transactions.
(11) Holding assets
Fluctuations in the fair value of assets held by the Group may
affect its performance.
(12) Financing
The Group’s financing programs may be affected by unexpected changes in financial conditions.
(13) Information security
The Group retains customer information related to its businessexecutions. Also, it possesses various types of confidential information concerning the Group’s proprietary technologies andoperations. If these information assets leak outside the Groupfor unforeseeable reasons, it may impact its performance.
(14) Compliance
The Group proactively pursues expansion in overseas operations, particularly the Chinese market; therefore its operations are subject to the laws and regulations of each country.
Although the Group has established and conducts a robust
compliance system, its operations are still at risk from the effects of unforeseeable events.
(15) Litigation
If the Group becomes the subject of any legal action or otherlegal procedures, its business may be affected.

With Our Customers
The Company makes it one of our business principles to “build trust by focusing on quality first.” As such, we strive
to enhance customer satisfaction through our commitment to thorough-going quality control as we believe delivering safe and secure products and services to customers is the Company’s most important mission.

Quality Control– Providing Safe and High-Quality Products
Basic policy on quality control
The Company’s electrical equipment for rail vehicles is installed inmany rail vehicles. These extremely important products play a
direct role in ensuring the safety of human life and property
during rail transportation. In the Industrial Systems and Information Equipment Systems segments as well, the Company’s products and services are used in customers’ production facilities,
development sites and in the field of social infrastructure, andthey form the foundation supporting the sustainable developmentof a society that is safe and comfortable to live in.
In order to ensure the high quality of our products and services, the Company has established a “Basic Policy on Quality
Control” which is deployed at all production bases as we strive tomaintain and improve our human resources education, compliance with rules, and our facilities.
Promotion framework
With regard to quality control, each fiscal year the Company
develops policies and the promotion framework aimed at further
maintaining and improving quality in each business unit, alongwith specific policies pertaining to the reduction of flaws andother issues. The Company’s Corporate Quality Control Division
works together with the quality control department or the quality
assurance department in each business unit to put together areport on the status of quality control and results in each unit.
The report is delivered to top management at the monthly Executive Officer Liaison Meeting where measures are debated anddecided. Furthermore, in the event that a flaw is discovered
after a product has been shipped, the necessary steps are
swiftly taken, mainly by the quality assurance department ineach business unit, while at the same time the causes that led
to the flaw and its mechanism are investigated, and this information is put into a database so that the information can beshared in-house in an effort to prevent recurrence.

Quality management system
The Company has created and operates a quality management
system at its production bases, the Yokohama Plant and the Shiga
Factory, and has obtained ISO 9001 certification.
Year ISO 9001 certification obtained

Yokohama Plant
1994

Shiga Factory
2000

Extended companywide
2007

Responding to the Global Market
Proper export controls
The Export Control Department at General Affairs Division is responsible for export management as the export management
control department. We have created a system for the proper
management of exports in order to ensure compliance with thelaws and regulations concerning export management in the countries and regions where we engage in business activities as wellas to avoid involvement in transactions that could hinder the
maintenance of international peace and safety.
The Export Control Department handles cargo and technology
parameters used in determining whether or not export permits are
required, as well as investigation of transactions. In addition, theDepartment carries out employee education and guidance andsupport for Group companies.

Towards Greater Customer Satisfaction
Implementation of customer satisfaction survey
Through its sales department, the Company regularly conducts
surveys on topics such as customer requests and customer satisfaction. The results are reported to the top management at Executive Officer Liaison Meetings, and the information is shared within
the Company. We strive to maintain good relations with our customers by identifying problems that need to be solved and swiftly
addressing them in order to raise customer satisfaction.
Toyo Denki Seizo Report 201520

Reports by Stakeholder

With Our SuppliersWith Our Shareholders and Investors

The Company responds to the needs of our customers through the strong network we have built with suppliers inline with our unique characteristics as a business based on an individual build-to-order/multi-product small lot
manufacturing model.

We strive to ensure transparency of management through the timely and proper disclosure of information and various modes of communication in order to receive an appropriate evaluation of the Company from our shareholders
and investors.

Towards Just and Fair Procurement
Communication with suppliers
The Company’s products possess various distinctive characteristics such as being individually built-to-order, manufactured in
multi-product small lots, and demanding high reliability. Therefore,
the Company can be affected by the performance of our suppliers
as a result of issues such as delays in supply due to fluctuationsin production quantity or delays in processing due to the quality of
products received.
In order to reduce these risks as much as possible, the Company carries out instruction and support related to quality, technology, and skills for our suppliers, as well as guidance for improvement of manufacturing sites, in order to ensure stableprocurement of even better quality products. In addition, we
actively promote information sharing through the “Toyo Denki
Cooperation Association” to which our leading suppliers belong.

Training for material procurement officers
The Company endeavors to maintain proper execution of operations by implementing a variety of training programs for material
procurement officers to deepen their knowledge of the Act against
Delay in Payment of Subcontract Proceeds, Etc. to Subcontractors
and related laws and regulations and to cultivate awareness oflegal compliance.
External whistle-blower system (for suppliers)
The Company has established an external whistle-blower system
to receive consultations or reports on compliance from our suppliers. The legal compliance department handles complaints andconsultations about transactions, and the Company’s retained
lawyer resolves issues when necessary.

TOPICS

Establishment of “Procurement Action Guidelines”

In March 2014, the Company improved its procurement-related regulations and established the “Procurement
Action Guidelines.” The details of the guidelines are as follows:

Procurement Action Guidelines
These guidelines indicate the codes of conduct that the Company’s executives and employees should comply with in the procurement ofpurchased parts and outsourced parts as required for the manufacturing of products ordered by customers (“procurement transactions”).
1. Procurement transactions shall be conducted in compliance with the laws of the relevant countries.
2. Information concerning suppliers in procurement transactions shall only be obtained within the scope necessary for conducting procurement activities in accordance with contracts. Furthermore, efforts shall be made to carefully manage and observe the confidentiality of information gained during business operations.
3. Personal interests with suppliers shall be prohibited in procurement transactions, including the lending and borrowing of money.
4. Receiving of remuneration or any other forms of personal rewards from suppliers shall be prohibited in procurement transactions.
In addition, entertainment or gifts beyond the scope of normal social behavior shall be prohibited.
5. Forceful requests for entertainment, gifts, or donations from suppliers shall be prohibited in procurement transactions.

Towards Enhancement of Corporate Value
Basic philosophy
Through timely and appropriate disclosure of information to ourshareholders and investors, the Company accurately conveys ourmanagement policy and business conditions while making use of
IR tools such as our website to promote a full range of IR activities
that contribute to the improvement of our corporate value.

Dividends
Maintenance of stable dividends forms the basis of the Company’s distribution of profit, and the dividend for the fiscal year ended May 31, 2015 was 6 yen per share (interim dividend of 0 yen,fiscal year-end dividend of 6 yen). The Company also intends tomaintain dividends at 6 yen or more per share from the fiscal year
ending May 31, 2016 onward.
Dividend per share
(Yen)

8

Development of IR activities
IR activities for institutional investors and securities analysts
The Toyo Denki management team holds a financial results briefing each quarterly period to provide opportunities for institutional
investors and securities analysts to understand the summary of
our financial results. The management team gives a report including the state of progress of the medium-term management plan
and an overview and forecast for each segment as well as neworders received and other topics.
In addition, we strive to deepen understanding of the Company
through individual visits to institutional investors or holding factory
tours to provide opportunities for them to actually see our manufacturing sites, as well as participating in small meetings organized by securities companies, and taking other measures.

6

6

6

6

6

6

FY 2010

2011

2012

2013

2014

4
2
0

Record of 154th Ordinary General Meeting of Shareholders
Date held: Thursday, August 27, 2015
Attendance: 102 people

IR activities for individual shareholders and individual investors
The Company website includes a “For Individual Investors” page
which offers a clear introduction to our business activities and our
results, as well as making available a variety of IR materials.
URL “For Individual Investors”
https://www.toyodenki.co.jp/ir/individual.php
Holding of company presentations for individual investors
Tuesday, January 27, 2015
Mitsubishi UFJ Morgan Stanley Securities (Head Office)Attendance: 109 people
Holding of factory tour for shareholders
Friday, April 17, 2015 at the Yokohama Plant
Attendance: 33 people (107 applicants)

President Terashima making a presentation (at the factory tour for shareholders)*Inquiries from outside are accepted via the following phone number and e-mail address:
Legal Compliance Department, General Affairs Division: +81-3-5202-8121

21

e-mail address for inquiries to Toyo Denki Seizo K.K.: contact@toyodenki.co.jp
Toyo Denki Seizo Report 2015

22

Reports by Stakeholder

With Our Employees

Creating a Pleasant Workplace

The Company seeks to cultivate a dynamic corporate culture and to create a pleasant and safe workplace where
each and every employee can unleash his or her diverse capabilities.

Executive manager development training

Department heads

Training for middle-management executives

II Hands-on learning
III Basic knowledge course
IV Practical training
V Individual training

IT education
Training inbusiness manners

Life-planning seminarOn-the-job
I Introductory training sales training
Training for new employees

Mental health training

Follow-up training (1st year)

Various distance learning courses

Follow-up training (3rd year)
Follow-up training (2nd year)

Compliance training

Comprehensive training for newly appointed senior general staff

TOEIC challenge system

Pre-promotion training for managers and professionals Coaching training

Pre-promotion training for senior general staff

Non-managerial employees

Training programs at the Company are divided into several categories according to the employee’s year of service, type of workand role, and training is carried out after clarifying what part each
employee is expected to play.
Furthermore, in response to globalization of the Company’s operations, we offer English and Chinese language programs. The Company covers the full cost for a variety of courses tailored to the levelof the participating employees, including distance learning, enrollment in schools, and classes provided by teachers in-house.

Supervisors

Education and training system

Evaluator training
Training for newly appointed managers and professionals

System for fostering specialists

Fundamental policy(1)	To develop human resources who understand and practice ourbusiness principles and code of conduct and who are of value
both as company employees and as members of society.
(2)	To develop human resources who are professionals, eachpossessing a high degree of specialized expertise, by enhancing the knowledge, techniques, and skills they need tocarry out their duties.
(3)	To provide a variety of educational opportunities in order topromote personal development, with emphasis on a self-directed approach to study and growth.

Training for newly appointed division heads
Incentive system for acquiring certification

The Company has set the following policy on human resources
development and carries out education and training.

Other/Personal development

Executive training

Division heads

Human resources development policy

Executives

Towards the Development of Human
Resources with Competitive Strengths

Training system

Follow-up
Training(within 1 year)

Training for unofficial new hires (graduates)

The Company holds monthly meetings of the Safety and Hygiene
Committee jointly with labor and management, where ongoing
discussions are held in order to build a safer working environment
and to reduce workplace injuries to zero, and to find solutions tomental health issues at each of our bases. In particular, sub-committees are set up to address important topics related to safety
and hygiene at production bases in an effort to create an evenbetter workplace.
Acquisition of the “Kurumin” certification logo (June 2014)
In recognition of our efforts as a “company that
supports child-rearing,” which includes a substantial childcare system, educational activities concerning a work-life balance, the creation of an environment in which it iseasy to obtain childcare leave, and the acquisition record of childcare leave by male employees, we received the “Kurumin” certification logo from the Tokyo Labor Bureau in June 2014.
Initiatives for diverse work-styles

On-the-job
factory training(sales staff)
Introductory
training IT education

Safety and hygiene initiatives

Supportsystemfor acquiring
publiccertification

Languageeducation(TOEIC)(Chinese)

Regular new hires (general staff group) Mid-career hires

Passing on skills
In order to proactively promote the transmission of outstanding
skills to maintain high quality, the Company encourages employees to obtain official certifications. Furthermore, employees withexceptional manufacturing skills or expertise are recognized as“My Star” internally and given responsibility to instruct and train
younger workers.
In April 2013, the Technical Training Center was newly established within the Yokohama Plant, where training is carried out fortechnical staff through lectures and various hands-on workshops.

The Company has implemented a flexible work-style including a
flextime system for sales staff and those involved in development.
Furthermore, in order to encourage retention and utilization of
employees with knowledge and skills, we have put in place the“System for Rehiring Employees” for employees who have resigned due to life events that occur in the course of their career(childbirth, childcare, family care, spouse’s transfer, etc.), so thatWork andfamily life
balancethey can be rehired when they reach the stage when it is possible
to return to work.
As for employees who wish to be rehired after they reach themandatory retirement age (60), in principle, we continue to employ them until the age of 65.
Initiatives for employment of the disabled
The Company makes improvements to the workplace environmentand carries out workplace training with the aim of creating aworkplace where the disabled and those in normal health canwork together energetically. We also promote collaboration withlocal governing agencies and special-needs schools regarding
employment of the disabled.
Mental health measures
As measures to address mental health, the Company conducts“Line care training” for administrative professionals and “Self caretraining” for employees. In addition, we have partnered with an
external medical institution to set up a telephone and e-mail consultation service to provide support for prevention, treatment, andreturn to work.
Implementation of employee satisfaction survey
The Company conducts an “employee satisfaction survey”
once per year, and relevant departments work to resolve
various issues extracted from the survey results. In addition,
the company-wide “Dynamism Committee,” whose purpose
is to create a “dynamic corporate culture,” leads various
activities aimed at revitalizing internal communication.

Encouraged to do my best by the smiles of my child!
Megumi Komatsu (Design Division, Transportation System Works)

I took maternity and childcare leave for about one year until my childbecame ten months old.
As I spent every day together with my child while I was on leave,
I think I felt even lonelier than my child when I first came back to work.
Because the time I could spend relaxing together with my child was
reduced after I was reinstated and because I also came to work laterand returned home earlier than the ordinary time as I used the shorter
working hour system for childcare, I initially felt some uncertainty
towards whether I could continue working as both work and childcare
felt somewhat incomplete.
However, as I kept busy every day, I became used to this life and now

I don’t feel any of this uncertainty.
I feel extremely happy thesedays when I return home fromwork to have my smiling childgreet me.
I would also like to do my bestat work, housework, and child raising so that my child, who is growing
fast every day, will be proud of me.
Finally, I would like to thank my coworkers who showed concern for
my health during pregnancy and who continue to demonstrate anunderstanding of my childcare duties.

Training for new employees

23

Toyo Denki Seizo Report 201524

Initiatives to Deal with the Environment and Local Communities

Initiatives to Protect the Environment

Initiatives to Prevent Global WarmingWith a view to realizing an environment-friendly society, the Company will further strive to promote the reduction ofenvironmental burden, while providing more efficient products that contribute to energy conservation.

Environmental Philosophy
The Toyo Denki Group sets initiatives to protect the global environment as its priority task and contributes to the development of a sustainable society.

Action Guidelines
We will continue to provide products and services that are considerate of the burden on the global environment by drawing on our “future-oriented technologies friendly to the Earth and mankind.”
1.
2.
3.
4.

We will comply with all environmental requirements including those under the relevant laws and regulations.
We will strive to minimize environmental burden through a reduction of energy consumption and other measures at
all stages of product lifecycle, namely planning, development, design, production, sales, use and disposal.
We will establish and execute a system to continuously promote activities to protect the global environment.
We will raise environmental awareness among individuals through enlightenment activities within the Group

Initiatives to reduce greenhouse gas (CO2) emissions

Targeted reduction of CO2 emissions and progress status

The Company is promoting energy conservation at each of its
production bases and offices to reduce its CO2 emissions. At the
production bases in particular, we are promoting power-savingand streamlining at production facilities. In addition, the Yokohama
Plant uses solar power generation for peak shaving of power demands.

Aiming to reduce CO2 emissions per unit of production output by
1% year on year, the Company’s main production base, the Yokohama Plant, achieved a 9.8% reduction in fiscal 2014.

Total energy input at Yokohama Plant (electricity and gas)
(Unit: 10,000 kWh)

800

Electricity

Total CO2 emissions at Yokohama Plant

Gas (Unit: 1,000 Nm )
3

400

(t)

720.7
317.2

631.8

3,000

400

200

2,000

200

100

1,000

0

0

Aiming for Realization of a Sustainable Society

244.6

Environment technologies of the Company
Energy conservation at each baseUse of sustainable energy

Low-carbon society
Implementation of measuresagainst global warming

590.9

284.7

2010

2011

3,307.3
2,905.0

252.0

0Recycling-based society

3,479.2

651.8
300

600

A sustainable society as envisaged by the Company is the combination of a “low-carbon society,” a “recycling-based society” anda “nature-symbiotic society.”
The environment technologies of the Company have produced
numerous products that contribute to energy conservation, including
high efficiency motors and inverters that capitalize on the amalgamation of our outstanding motor drive technology and other state-of-theart technologies. In the meantime, the Company has been striving toconserve resources through not only the efficient use of energy but
also the reduction of the size and weight of its products.
In addition, the Company is working on the development of
products with lower levels of noise involved in their use to makethem friendlier to the surrounding environment.
The Company will make further contribution to make society
more sustainable, fully utilizing on its environmental technologies
on a global scale, while carrying out various environmental
actions at each of its bases.

628.5
284.0

4,095.0

3,936.0

4,000

2012

2013

2014

2010

(year*)

2011

2012

2013

2014

(year*)

Waste reduction andrecycling at each basePromotion of waste reduction
and recycling

Total solar power generation at Yokohama Plant(kWh)

Based on 500 kW generator

750,000

Nature-symbiotic society

Initiatives for control overchemical substances

Conservation of biodiversity

Total water input/output
at Yokohama Plant
横浜製作所
水資源投入量・排出量674,893.0

25

676,000.0

22.5

600,000

450,000

Water input(Unit: 1,000 m3)

21.1

20

433,862.6

15

15.8

Water output

19.9
15.8
13.9

14.2

14.1 14.1
12.3

300,000

10

150,000

5Environmental Management System
0

0
2012

In order to tackle environmental issues on an independent and continuous basis, the Company has developed and operates an environmental management system and thereby obtained ISO 14001
certification. This certification has been acquired for all offices andthe production bases Yokohama Plant and Shiga Factory.

25

2013

2014

(year*)

2010

2011

2012

2013

2014

(year*)

Years of ISO 14001 certification

Shiga Factory

2001

Yokohama Plant

2004

Extended to all offices

2010

Toyo Denki Seizo Report 201526

Initiatives to Deal with the Environment and Local Communities

Initiatives for Control over Chemical Substances
Volatile organic compounds (VOCs) emitted as a result of ourbusiness activities are adequately controlled and the amount ofemission is monitored under the Pollutant Release and Transfer
Register (PRTR).
We will further engage in the reduction of waste through suchmeasures including using non-VOC materials and implementing
recovery and reuse of solvents. PCB waste is also subject to adequate control, storage and disposal in accordance with Japan’s
Act on Special Measures concerning Promotion of Proper Treatment of PCB Wastes.

Notification volume for Pollutant Release and Transfer Register (PRTR) substances
Total amount of air emissions(kg)

10,000

9,600

8,000

6,000

Total amount of shift

7,700

8,300

Contributions to Local Communities
We are committed to various social contribution activities, to contribute to society through our business while facilitating our own co-existence with communities and to foster young people who will represent the next generation.

7,900

7,300
6,120

5,320
4,600

4,810

5,290

To Convey the Mission and the Appeal of
Electrical Industry as Well as of Toyo Denki

4,000

2,000

Receiving interns
0
2010

2011

2012

2013

2014 (year*)

Initiatives for Reducing Disposed
Waste as Well as Recycling
Main actions

Factory tours

We are committed to activities that raise awareness and appreciation of our manufacturing expertise by accepting interns from local technical high schools and providing them with hands-on experience at manufacturing sites. This internship system serves as
an effective means of recruiting outstanding technical staff on aconsistent basis as some students in the schools apply for positions at the Company.
Six high school students participated in internships during fiscal 2014 and learned about our manufacturing expertise.

The Company successfully reduced its landfill waste rate to 1.3% in
fiscal 2014, as a result of thoroughly implementing waste processing rules, sorting of metal waste and recycling of paper resources.
Volume of landfill waste

Output of general and valuable waste
廃棄物・有価物排出量の推移
(t)

25

703.5
637.4

600

652.2

24.2

682.6
20

587.9

Measurement using a caliper

15

Instruction and practice of rotor
dynamic balance panning work at
a motor assembly workshop

The Company cooperates in small woodlands conservation activities led mainly by the city of Yokohama by donating part of theproceeds from vending machines installed at the Engineering
Center of the Yokohama Plant to the fund.
Cleanup campaigns within the vicinity of the production bases

400

10
200

Participation in university endowment courses and hands-on courses

9.0

5

5.6

5.0

2011

2012

5.9

0

0
2010

27

We are conducting “factory
tours” to provide opportunities for members of local
communities to actually see
our manufacturing facilities
and products in order to deA factory tour
velop deeper understanding
about the business operations of the Company. During these tours, we inform the participants of our products as well as our actions for environmental
protection and factory facilities, in an effort to build up relationships built on trust with local communities.
Cooperation with Yokohama Kyodo no Mori Fund

(t)

800

We conduct lectures leveraging the know-how fostered throughoperations and our business activities in corporate-participating
courses held by educational institutions including universities.

2011

2012

2013

2014

(year*)

2010

2013

2014

(year*)

We participated in endowment courses sponsored by
the Yokohama Green Purchasing Network so thatparticipants can deepen
their knowledge on historyof railway and the environEndowment course at a university
ment through our businessactivities.
In addition, in fiscal 2014, we also participated in hands-on
courses sponsored by Kanagawa Shimbun Co., Ltd., and Asahi
Kasei Amidas Corporation, during which one of our PR spokespersons gave a lecture for the “newspaper reporter hands-on lecture.”

In cooperation with neighboring companies, we conduct cleanup
campaigns within the vicinity of the Yokohama Plant and theShiga Factory.

Cleanup campaign(Yokohama Plant)

Cleanup campaign(Shiga Factory)

Toyo Denki Seizo Report 2015

28

Data
Data Concerning Personnel and Labor

Environmental Data
Indices

Data concerning personnel and labor (at Toyo Denki Seizo K.K.)
Item

Unit

Fiscal 2010

Total
Men

Number of employees

748
Persons

Women%

Ratio of female employees
Total
Men

Number of administrative professionals

Persons

Women%

Ratio of female administrative professionals
OverallMen

Average age

Age

Women
OverallMen

Average years of employment

1744

Fiscal 2012
1

791

Fiscal 2013
2

797

2

804

697

693

735

737

740

51

51

56

60

64

6.8

6.9

7.1

7.5

8.0

171

155

152

156

151

170

153

151

155

149

1

2

1

1

2

0.6

1.3

0.7

0.6

1.3

40.8

41.1

41.0

41.1

40.5

41.1

41.4

41.1

41.2

40.7

36.5

38.2

38.9

39.0

38.7

16.4

16.5

16.1

16.3

15.8

16.7

16.3

16.5

15.9

13.5

14.6

14.5

14.5

14.5

Yen

5,953,210

6,039,332

5,885,559

5,750,453

5,888,577

%

5.9

13.5

3.8

0.0

0.0

Number taking childcare leave

Persons

1

2

3

1

5

Number taking family care leave

Persons

0

0

0

0

0

Number of temporary staff (including part-timers)

Persons

155

149

167

158

153

Overturn rate (within 3 years of joining the Company)

Electric power (10,000 kWh)Fiscal 2014

16.6

Years

Women
Average annual salaryFiscal 20112

Urban gas (1,000 Nm3)

Water input (1,000 m3)CO2 emissions (t)Solar power generation (kWh)Water output (1,000 m3)

Indices
Total amount of air emissions (kg)
Total amount of shift (kg)
Total amount of
air emissions
Ethylbenzene (kg)
Total amount of
shift
Total amount of
air emissions
Xylene (kg)

Reference data I: Number of Officers (at Toyo Denki Seizo K.K.)
Item

Unit
Total
Men

Number of Officers

Persons

Women
Notes

Fiscal 2010

Fiscal 2011

Fiscal 2012

Fiscal 2013

Fiscal 2014

12

10

10

11

12

12

10

10

11

12

0

0

0

0

0

PRTR

Total amount of
Tetrahydromethylphthalic air emissions
anhydride(kg)
Total amount of
shift
Total amount of
air emissions

Reference data II: Number of employees at the Group Companies in Japan and overseas (at the 6 consolidated subsidiaries of Toyo Denki Seizo K.K.)
Unit

Fiscal 2010

Fiscal 2011

Fiscal 2012

Fiscal 2013

Fiscal 2014

Persons

1,177

1,175

1,170

1,201

1,216

Number of employees at Group companies in Japan and overseas Persons

429

431

379

404

412

Number of temporary staff on a consolidated basis(including part-timers; stated in the Annual Securities Report)

Persons

262

235

256

255

214

Number of temporary staff (including part-timers)

Persons

107

86

89

97

61

Number of employees on a consolidated basis

Notes

Toluene (kg)
Total amount of
shift

IndicesIndustrial waste (tons)

Reference data III: System for support of work-family balance (at Toyo Denki Seizo K.K.)

Maternity andchildcare related

Family care related
Other

29

Prenatal leave
Maternity leave

Can be taken for up to 8 weeks after birth.

Childcare leave

In principle, childcare leave can be taken for a period as needed from the day after 8 weeks have elapsed since birth (completion of maternity leave), until
the day before the child turns 1 year old. In cases where it is difficult to find a place in daycare, etc., it is possible to apply for an extension of childcare
leave until the child is 1 year and 6 months, or until the last day of the month of March after the child has reached the age of 1 year, whichever is longer.

If an employee has taken childcare leave within the 8-week period after his spouse has given birth, he may take repeat childcare leave until
Repeat childcare leave
the child reaches one year of age. Further, if the employee and spouse both take childcare leave, the childcare leave period can be extended(Mom and Dad Childcare Leave Plus)
until the child reaches 1 year and 2 months.
Shorter working hours forchildcare

Working hours may be set at 5 hours 45 minutes or 6 hours 45 minutes per day for a period as needed from the end of childcare leave until
the child graduates from elementary school.

Nursing leave

Up to 5 special days off may be taken per family member for nursing care for pre-elementary school age children.

Family care leave

A total of up to 3 years of family care leave may be taken per person needing care.

Family care work hours

Employees not taking family care leave may limit working hours to 5 hours and 45 minutes or 6 hours and 45 minutes per day.

System for Rehiring
Employees

Employees who have resigned due to marriage, infertility treatment, childbirth, childcare, family care, or spouse’s transfer, etc., may be rehired
when they are able to return to work depending on the employee’s request and workplace needs.

Fiscal 2012
624.1
590.9
33.2
31.2
252.0
252.0
19.9
19.9
0.0
3,456.3
3,307.3
149.0
169.0
433,862.6
13.9
13.9
0.0

Fiscal 2013
664.8
628.5
36.3
27.9
284.0
284.0
14.2
14.2
0.0
4,122.0
3,936.0
186.0
168.0
674,891.0
12.3
12.3
0.0

Fiscal 2014
684.3
651.8
32.5
30.1
284.7
284.7
14.1
14.1
0.0
4,265.0
4,095.0
170.0
180.0
676,000.0
14.1
14.1
0.0

Remarks

Fiscal 2011
7,700
4,600
1,800
1,800
0
550
550
0
3,300
3,300
0
450
450
0
0
0
0
1,600
1,600
0
2,600
2,600
0
2,000
2,000
0

Fiscal 2012
7,300
4,810
1,800
1,800
0
330
330
0
2,900
2,900
0
280
280
0
0
0
0
3,000
3,000
0
2,600
2,600
0
1,200
1,200
0

Fiscal 2013
8,300
5,290
2,000
2,000
0
430
430
0
3,300
3,300
0
360
360
0
0
0
0
2,900
2,900
0
3,000
3,000
0
1,600
1,600
0

Fiscal 2014
7,900
6,120
2,000
2,000
0
670
670
0
3,400
3,400
0
550
550
0
0
0
0
2,500
2,500
0
2,500
2,500
0
2,400
2,400
0

Remarks

Production bases total
Yokohama Plant
Shiga Factory
Production bases total
Yokohama Plant
Shiga Factory
Production bases total
Yokohama Plant
Shiga Factory
Production bases total
Yokohama Plant
Shiga Factory
Production bases total
Yokohama Plant
Shiga Factory
Production bases total
Yokohama Plant
Shiga Factory
Production bases total
Yokohama Plant
Shiga Factory
Production bases total
Yokohama Plant
Shiga Factory

Fiscal 2010
9,600
5,320
2,300
2,300
0
450
450
0
4,000
4,000
0
370
370
0
0
0
0
2,800
2,800
0
3,300
3,300
0
1,700
1,700
0

Applicable premises
Production bases total
Yokohama Plant
Shiga Factory
Production bases total
Yokohama Plant
Shiga Factory
Production bases total
Yokohama Plant
Shiga Factory
Production bases total
Yokohama Plant
Shiga Factory
Production bases total
Yokohama Plant
Shiga Factory
Production bases total
Yokohama Plant
Shiga Factory
Production bases total
Yokohama Plant
Shiga Factory

Fiscal 2010
319.8
292.8
27.0
130.2
130.2
280.5
280.5
730.5
703.5
27.0
524.3
524.3
24.2
24.2
3.3
3.4
-

Fiscal 2011
316.7
282.4
34.3
114.9
114.9
240.1
240.1
671.7
637.4
34.3
436.4
436.4
5.6
5.6
0.8
0.9
-

Fiscal 2012
279.9
244.1
35.8
101.9
101.9
255.6
255.6
637.3
601.5
35.8
435.2
435.2
5.0
5.0
0.8
0.8
-

Fiscal 2013
290.3
262.0
28.3
99.3
99.3
290.9
290.9
680.5
652.2
28.3
462.4
462.4
5.9
5.9
0.9
0.9
-

Fiscal 2014
303.1
303.1
30.3
105.4
105.4
274.1
274.1
682.6
682.6
30.3
598.2
598.2
9.0
9.0
1.3
1.3
-

Remarks

1

2

3

4

Applicable premises

Waste Data

As of May 31 for each fiscal year

Can be taken from 8 weeks prior to due date (14 weeks prior in the case of multiple births).
(6 weeks is required by law)

Total amount of
shift

5

For each fiscal year as of May 31 (Executives include Directors, Internal Statutory Auditors, and External Statutory Auditors)

Item

Fiscal 2011
667.1
631.8
35.3
28.9
244.6
244.6
21.1
21.1
0.0
3,014.0
2,905.0
109.0
231.0
15.8
15.8
0.0

PRTR Data*1 Number of regular employees including Executive Officers and number of special employees, temporary employees and temporary and part-time employees*2 Number of regular employees including Executive Officers, and number of special employees, temporary employees, contract employees and staff on loan from other companies, etc.

Notes

Fiscal 2010
756.9
720.7
36.2
35.5
317.2
317.2
22.5
22.5
0.0
3,585.2
3,479.2
106.0
212.0
15.8
15.8
0.0

Applicable premises
Production bases total
Yokohama Plant
Shiga FactoryNon-production bases total
Production bases total
Yokohama Plant
Shiga Factory
Production bases total
Yokohama Plant
Shiga Factory
Production bases total
Yokohama Plant
Shiga FactoryNon-production bases total
Based on 500 kW generator Yokohama Plant
Production bases total
Yokohama Plant
Shiga Factory

General waste (tons)

Valuable metal waste (tons)

WastesWaste output () (tons)

Recycled amount (tons)

Volume of landfill waste (tons)
Percentage of landfill waste (%)
Yearly comparison

6

6

6

*The fiscal year is from April to March of the following year. *Non-production bases: Toyo Denki Seizo Head Office, Osaka Branch, Nagoya Branch, Hokkaido Branch, Kyushu Branch, Hiroshima Branch*1 ISO 14001 certification was obtained for non-production bases in June 2010.
*4 Production activities at Shiga Factory recorded close to zero water output.
*2 Production activities at Shiga Factory recorded close to zero water input.
*5 PPTR: Pollutant Release and Transfer Register*3 500 kW solar panel became operational in July 2012.
*6 The recycled amount and the volume of landfill waste at the Shiga Factory are scheduled for investigation starting in fiscal 2015.

Toyo Denki Seizo Report 201530