Management

CSR Report

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

Corporate GovernanceOur philosophy of corporate governance
The Group’s business activities are based on the businessprinciples that “prioritize ethics and contribute to theprosperity of customers and society as a whole.” We
therefore strive to attain sound corporate management
through strengthening and reinforcing corporate
governance, fully appreciating the significance ofcompliance based on corporate ethics. At the same time,
we review as appropriate our management monitoring
system to ensure its conformity to the changes in thebusiness environment including social environment andrelevant legislation.

Corporate governanceManagement

16 Corporate Governance17 Internal Control/Compliance
18 Risk Management
18 Information Security

Reports by Stakeholder

19 With Our Customers
21 With Our Suppliers
22 With Our Shareholders and Investors
23 With Our Employees

Actions to Deal with the Environment and Local Communities

26 Actions to Protect the Environment
30 Contributions to Local Communities
15

We are a company with a board of statutory auditors,
furnished with corporate bodies established in accordancewith laws and regulations as well as the Articles ofIncorporation, and include 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 as well as extraordinary meetings held whenappropriate, the Board of Directors 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, theCompany has meeting bodies including the Management
Strategy Meeting and Executive Officer Liaison Meeting.
Through these bodies, critical management matters
including matters related to their execution of duties and/or those subject to the deliberation of the Board of
Directors are reported to the President by the generalmanagers of business execution departments, and aredeliberated and discussed preliminarily.

Internal audit and statutory auditor’s audit
Action plans and results of internal audits are reported to
the Board of Directors and Statutory Auditors by the Audit
Division under the direct control of the President as afunction independent of all business operations subject toaudit, 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 ofquarterly reviews from Accounting Auditors both verballyand in writing, and confirm their action plans (if required by
the reviews) to be taken at a fiscal year-end audit.
Statutory Auditors also receive the results of the reviewson the fiscal year-end audit from Accounting Auditors in a

s t a t u t o r y d o c u m e n t a l o n g w i t h v e r b a l re v i e w s .
Furthermore, Statutory Auditors are in principle required to
be present at inventory taking or on-site inspection at
subsidiaries by Accounting Auditors.

External Statutory Auditors and Outside Directors
Although the Company has established neither guidelines
nor policies regarding the independence required for a
candidate for its External Statutory Auditor, we usedcriteria for the independence of members of an
independent committee established by stock exchanges
as reference in appointing the two External Statutory
Auditors, who both have excellent insight in their areas ofexpertise with no interest in the Company or in its major
suppliers. One of them is engaged in the auditing activities
for the Company, drawing on his wealth of experience andbroad knowledge developed in his service at a financial
institution. The other is a certified public accountant who
utilizes his professional expertise in the area of corporate
financial accounting for the Company’s auditing work.
Meanwhile, the Company has appointed Mr. Ikeda as amember of the Independent Committee and registered
him as such at stock exchanges.
The Board of Directors consists of Directors who arefamiliar with the Company’s business operations, so thatmaintenance and enhancement of management efficiency
can be ensured. External Statutory Auditors are in place tothoroughly perform auditing functions to ensure
management soundness. As such, the Company has notappointed Outside Directors as of this report’s date ofissue.

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 is payable as determined byeach Director’s contribution to management as well as
business results of the Company. Basic remuneration forboth Standing and Part-time Statutory Auditors is a fixedsalary without bonus payments.
Category of executives
Directors
Statutory Auditors(excluding External
Statutory Auditors)
Outside Executives(External Statutory
Auditors)

Number of executives Total amount of remuneration
applicable(Unit: Million yen)

9

125

2

27

2

11

Toyo Denki Seizo Report 201316

Management

Internal Control/Compliance

Risk Management

Internal control

Principles of compliance

The Company has developed an internal control system
based on the Rules for the Internal Control OversightCommittee established in June 2006. The system
reasonably ensures the achievement of objectives
including effectiveness and efficiency of operations,reliability of financial reporting, compliance with relevantlaws and regulations and protection of corporate assets.
The Company has also introduced a self-inspection
system to enhance monitoring so that an effectivefunctioning of internal control can be ensured.
Furthermore, the Company has developed andoperates an internal control system appropriately toensure the reliability of its financial reporting, based on the
Financial Instruments and Exchange Act (the so-called
J-SOX Law). Accordingly, we determined that the internal
control with respect to the Group’s financial reporting was
effective as of fiscal 2012, and we submitted an internal
control report to the relevant authorities in August 2013.
The report has been endorsed as adequate by an audit
report submitted by the Accounting Auditor.

Basic policy

The Company has set “1. adherence to rules,” “2.
observance of confidentiality,” “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.

The Company is engaged in developing rules and aframework for risk management according to the Basic
Rules for Risk Management established in August 2006.

Promotion framework

Compliance promotion framework
To focus on business principles and fulfill its social
responsibility, the Company has provided all officers andemployees with a copy of the Compliance Manual (ToyoDenki Seizo Ethical Standards) that stipulates its code of
conduct. The move is part of an effort to have the codeand the basic rules of work fully known.
The Company has also introduced a whistle-blowing
system that allows employees to provide information
directly to the management. The system is aimed atensuring that any illegal or inappropriate conduct within
the Company is detected at the earliest possible stage
and that adequate measures are taken promptly and asneeded so that such conduct is rectified.

The Company has established the Internal Control
Oversight Committee, an advisory body chaired by the
President and has some of its authority delegated from theBoard of Directors. It analyzes and assesses all the risks
that exist in the Group and develops an effective risk
management framework capable of dealing precisely withthe risks of the types and degrees that the Group 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 therecommendations resulting from its deliberations.
Furthermore, the committee is committed to enhancing
t h e G ro u p - w i d e r i s k m a n a g e m e n t f r a m e w o r k i n
accordance with the Basic Rules for Risk Management.

Compliance education
The Company is organizing scheduled and systematictraining sessions based on a compliance training masterplan to enhance knowledge on compliance while
promoting a conscious respect for corporate ethics.

General Meeting of Shareholders
Appointments/dismissals

Accounting Auditors

Reporting

ReportingAppointments/dismissals

Board of Statutory Auditors

Legal audit

ReportingBoard of Directors
Directors

Statutory Auditors
ReportingAppointments/dismissals

Business audit

Accounting audit
Reporting/decisions
Instruction/reporting

Audit DivisionInternal audit

Appointments/dismissals

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

Reporting on business execution

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

Disaster drill by the company’s fire brigade(Yokohama Plant)

The Company holds a vast amount of information assets
including information presented by customers related toits business execution and confidential information
concerning the Group’s proprietary technologies and its
trade. Each Group company is taking various measures inthis respect based on an awareness of shared security
under the Group’s Information Security Guidelines, whichhave been established to adequately manage and use
these information assets.

Information security training
The Company is conducting educational activities todevelop information security awareness among all
employees including various training sessions, someinvolving the use of educational DVDs.

Instruction/reporting

Executive Officers (including those concurrently serving as Directors)
Instruction/reporting

Each business department
Oversight

Appointments/dismissals

In 2008, the Company developed a Business Continuity
Plan (BCP) for its main production site, the Yokohama
Plant. In the event of crises such as natural disasters,
accidents or emerging pandemics, the BCP shall belaunched without delay to ensure the continuity ofminimum essential work while facilitating an early recoveryof business operations.

Information Security
Basic policy

Corporate governance framework

Development of Business Continuity Plan (BCP)

Instruction/reporting

Instruction/reporting

Each Group company
A training session

17

Toyo Denki Seizo Report 201318

Reports by Stakeholder

With Our Customers

Passing on skills

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 believedelivering 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 isinstalled in many rail vehicles. These extremely important
products play a direct role in ensuring the safety of humanlife and property during rail transportation. In the Industrial
Systems and Information Equipment Systems segments
as well, the Company’s products and services are used incustomers’ production facilities, development sites and in
the field of social infrastructure, and they form thefoundation supporting the sustainable development of asociety that is safe and comfortable to live in.
In order to ensure the high quality of our products andservices, the Company has established a “Basic Policy on
Quality Control” which is deployed at all production bases
as we strive to maintain and improve our human resources
education, compliance with rules, and our facilities.

Promotion framework
With regard to quality control, each fiscal year theCompany develops policies and the promotion framework
aimed at further maintaining and improving quality in eachbusiness unit, along with specific policies pertaining to the
reduction of flaws and other issues. The Company’s
Corporate Quality Control Division works together with thequality control department or quality assurance
department in each business unit to put together a reporton 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 aredebated and decided. Furthermore, in the event that aflaw is discovered after a product has been shipped, thenecessary steps are swiftly taken, mainly by the quality
assurance department in each business unit, while at thesame 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 be shared inhouse in an effort to prevent recurrence.

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

Yokohama Plant

1994

Shiga Factory

2000

Extendedcompanywide

2007

Improvement activities
The Company promotes improvement activities focusedon our production bases for the purpose of improving
operational efficiency across the board, from the designand development stage through to manufacturing andquality assurance. These involve activities by groups orcircles in which all employees participate, with targets set
for each employee to carry out improvements and submit
case reports. The Circle of Excellence is an activity we are
implementing to raise employee motivation.
Commendations are awarded twice a year, and apresentation and awards ceremony is held at the
Yokohama Plant where individual improvement casestudies are evaluated and cash bonuses are given.

Responding to the Global Market
Proper export control
The Corporate Quality Control Division is responsible forexport management as an export management control
department. We have created a system for the proper
management of exports in order to ensure compliancewith the laws and regulations concer ning export
management in the countries and regions where we
engage in business activities as well as to avoid
involvement in transactions that could hinder the
maintenance of international peace and security.
The Corporate Quality Control Division handles cargo
and technology parameters used in determining whether
or not export permits are required, as well as investigationof transactions. In addition, the Division carries out
employee education and instruction and support forGroup companies.

Towards Greater Customer Satisfaction
Technical Training Center

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 byidentifying problems that need to be solved and swiftly
addressing them in order to raise customer satisfaction.

Hands-on technical training workshop

T O P I C S

Measures to prevent the recurrence of shipments of products containing asbestos
4, 2013, the Company released an “Apology
O nandMarch
Notice Concerning Shipment of Products

Improvement Activities Presentation Ceremony(Yokohama Plant)

19

In order to maintain high quality, the Company actively
promotes the transmission of outstanding skills. To thisend, employees with exceptional manufacturing skills or
expertise are recognized as “My Star” internally, and are
given responsibility to instruct and train younger workers.
The Company’s tradition of technical education has
continued unbroken since the establishment of the Toyo
Denki School for Young People in 1937. In April 2013, theTechnical Training Center was newly established within the
Yokohama Plant, where training is carried out for technicalstaff through lectures and various hands-on workshops.

Containing Asbestos.” Due to the inadequacy in some ofour policies on asbestos, it was discovered that insulating
sheets with asbestos backing had been used in someequipment for rail vehicles, namely “conductor’s switches,”that were manufactured and shipped by the Company.
In addition to offering an apology to our customers in
the railway business that received the products in question,
after consulting with the railway operators and based on
the law and regulations, we implemented measures toreplace the relevant products with products in whichasbestos was not used. Furthermore, we have repeatedly
conducted thorough investigations into the situation withregard to use of asbestos-containing products within theGroup, and as a result have confirmed that asbestos is not
used in any of our products.
We offer our deepest apologies for the problems wecaused for the railway operators and all others involved inthis matter, while at the same time taking this accident as alesson to take thorough steps to prevent a recurrence inthe future.

Toyo Denki Seizo Report 201320

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 in line with our unique characteristics as a business based on an individual build-to-order/multi-

Through the timely and proper disclosure of information and various modes of communication, we strive to
receive an appropriate evaluation of the Company from our shareholders and investors.

product small lot manufacturing model.

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 suchas delays in supply due to fluctuations in production
quantity or delays in processing due to the quality of
products received.
In order to reduce these risks as much as possible, theCompany carries out instruction and support related toquality, technology, and skills for our suppliers, as well as
guidance for improvement of manufacturing sites, in orderto ensure stable procurement of even better quality
products. In addition, we actively promote information
sharing through the “Toyo Denki Cooperation Association”
to which our leading suppliers belong.

Thorough incoming inspection
Many of the Company’s products are related to railways orsocial infrastructure and a high degree of reliability isrequired of these products.
When procuring materials, we have in place a system
in which procured items undergo a thorough incoming
inspection, and only those that pass the strict inspection
are accepted. The incoming inspection records are kept toprovide a trail that can be used in quality checks later on.
When a variation occurs in a procured item, the natureof the variation is verified from the perspective of fourmanagement points, “the 4Ms”: Man, Machine, Material,and Method. This mechanism allows us to confirm with

Towards Enhancement of Corporate Value
regard to the variation whether or not a problem arises
during processing before making a change.

Incoming inspection

Basic philosophy
Through timely and appropriate disclosure of information
to our shareholders and investors, the Company
accurately conveys our management policy and businessconditions 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.

The Company endeavors to maintain proper execution ofoperations by implementing a variety of training programsfor material procurement officers to deepen theirknowledge of the Act against Delay in Payment of
Subcontract Proceeds, Etc. to Subcontractors and related
laws and regulations and to cultivate awareness of legal
compliance.

External whistle-blower system (for suppliers)
The Company has established an external whistle-blower
system to receive consultations or reports on compliancefrom our suppliers. The legal compliance department
handles complaints and consultations about transactions,and the Company’s retained lawyer resolves issues whennecessary.

The Toyo Denki management team holds a financial
results briefing each quarterly period and gives areport including the state of progress of the mediumterm management plan, an overview and forecast foreach segment, major orders, and other topics.
In addition, we strive to deepen understanding of
the Company through individual visits to institutional
investors or holding factory tours, participating in small
meetings organized by securities companies, and soon.

IR activities for individual shareholders and individual
investors
The Company website includes a “For Individual
Investors” page which offers a clear introduction to ourbusiness activities and our results, as well as making
available a variety of IR materials.
URL “For Individual Investors”

http://www.toyodenki.co.jp/html/ir_individual.html

Efforts with regard to local procurement of materials overseaspress ahead with local procurement of materials while
striking a balance between reducing costs and ensuring
quality. In particular, in the Transportation Systems
segment, when submitting a tender for electrical equipment
for rail vehicles used overseas, one of the conditions
sometimes required is to meet a certain ratio of local
procurement, and as such the Company is stepping up
cultivation of local procurement sources and reinforcing the

Dividend per share
(Yen)

8
6

6

6

6

6

6

2008

2009

2010

2011

2012

4
2
0
FY

Record of 152nd Ordinary General Meeting of Shareholders
Date held: Tuesday, August 27, 2013
Attendance: 112 people

T O P I C S

IR activities for individual investors
received valuable comments fromT heourCompany
shareholders through the Questionnaire to
Shareholders inserted in the Interim Business Reportfor fiscal 2012 issued in early February 2013. Basedon the valuable answers and opinions that were
submitted, we will enhance our IR activities forindividual investors as follows.

T O P I C S
the Company’s business development expands
A soverseas,
it has become more and more important to

Maintenance of stable dividends forms the basis of theCompany’s distribution of profit, and the dividend for the
fiscal year ended May 31, 2013 was 6 yen per share(interim dividend of 0 yen, fiscal year-end dividend of 6yen). The Company also intends to maintain dividends at
6 yen or more per share from the fiscal year ending May
31, 2014 onward.

Development of IR activities
IR activities for institutional investors and securities
analysts

Training for material procurement officers

Dividends

quality check system for materials.
Furthermore, by moving ahead with measures such as
central purchasing that also includes Group companies
and joint purchasing with FUJI ELECTRIC and Hitachi withwhom we have business alliances in the field of electricalequipment for rail vehicles for railways overseas, we arealso advancing local procurement of materials in India andSoutheast Asia where the Company will be expanding in
the future.

IR activities launched in response to
the results of the questionnaire
Establishment of a web page for individual investors (June 2013)
Company presentation for individual investors (From September 2013)
Hold factory tours for shareholders(Scheduled to be held in spring of 2014)
Financial results briefing for the fiscal year ended May 31, 2013
by former President Hiroshi Tsuchida (held in July 2013)21

Toyo Denki Seizo Report 2013

22

Reports by Stakeholder

With Our Employees
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.

Towards the Development of Human Resources with Competitive Strengths
Human resources development policy

Establishing and promoting a dynamic corporate culture

Executives

Other/Personal development

Executive training
Executive manager development training
Training for newly appointed division heads

Non-managerial employees

Follow-up training (1st year)
Training for new employees On-the-job
sales training
I Introductory training
II Hands-on learning
IT education
III Basic knowledge course
IV Practical training
Training inV Individual training business manners

Follow-up Training(within 1 year)
On-the-job
factory training(sales staff)
Introductory
IT education
training

Training for unofficial new hires (graduates)
In-house exchange event “Area Night”

23

Mental health training

Follow-up training (3rd year)

Life-planning seminar

Pre-promotion training for senior general staff

Various distance learning courses

Comprehensive training for newly appointed senior general staff

Compliance training

Pre-promotion training for managers and professionals Coaching training

TOEIC challenge system

Evaluator training
Training for newly appointed managers and professionals

System for fostering specialists

Training for middle-management executives

Follow-up training (2nd year)

Safety and hygiene initiatives
The Company holds monthly meetings of the Safety andHygiene Committee jointly with labor and management,
where ongoing discussions are held in order to build asafer working environment and to reduce workplace
injuries to zero, and to find solutions to mental healthissues 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 aneven better workplace.

Support system for Language education(TOEIC)acquiring public(Chinese)certification

due to life events that occur in the course of their career(childbirth, childcare, family care, spouse’s transfer, etc.),
so that they 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 theyreach the mandatory retirement age (60), in principle, we
continue to employ them until the age of 65.

Initiatives for employment of the disabled
Initiatives to support a balance between work and family
The Company has put in place a full range of systems inorder to allow each and every employee to realize abalance between work and family. Details about thecontents of these systems are published in a PR pamphlet
for employees called the “Guidebook on Childcare andFamily Care Leave,” and are posted on the company
intranet where employees can consult them at any time.

Initiatives for diverse work-styles

Incentive system for acquiring certification

The Company engages in a range of communication
activities to realize the “establishment and promotion of a
dynamic corporate culture” set as a fundamental policy
under the Dash 2015 medium-term management plan.
These are implemented in-house through the Dynamism
Committee and include initiatives such as exchanges
between employees and between different business types
as well as opportunities for personal development.
The Dynamism Committee, made up of members fromthe Company’s administrative professionals and generalemployees, draws up policies related to these activities
and develops them independently.

Training system

Division heads(1) To develop human resources who understand andpractice our business principles and code of conduct
and who are of value both as company employees andas members of society.
(2) To develop human resources who are professionals,
each possessing a high degree of specialized
expertise, by enhancing the knowledge, techniques,
and skills they need to carry out their duties.
(3) To provide a variety of educational opportunities inorder to promote personal development, with emphasis
on a self-directed approach to study and growth.

Department heads

Fundamental policy

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

Supervisors

The Company has set the following policy on humanresources development and carries out education andtraining.

Education and training system

Creating a Pleasant Workplace

The Company has implemented a flexible work-styleincluding a flextime system for sales staff and those
involved in development. Furthermore, in order toencourage retention and utilization of employees withknowledge and skills, we have put in place the “System
for Rehiring Employees” for employees who have resigned

Work and family
life balance

The Company makes improvements to the workplaceenvironment and carries out workplace training with theaim of creating a workplace where the disabled and thosein normal health can work together energetically. We also
promote collaboration with local governing agencies andspecial-needs schools regarding employment of thedisabled.

Mental health measures
As measures to address mental health, the Company
conducts “Line care training” for administrative
professionals and “Self care training” 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.

Leading a busy but fulfilling life, encouraged by the smiling faces of my child and family
Asami Isaka (Financial Affairs Division), Tsutomu Isaka (Industry Business Unit)

I work in the Financial Affairs Division, and my husband is in
the Sales Division of the same company. When our firstchild was born, I took maternity and childcare leave. My
initial plan was to return to work when our child turned one,but I extended the childcare leave until our child was one
and a half years old because we could not find a place in
daycare, and then I went back to work.
After returning to work, my husband and I both took
advantage of the system of shorter work hours forchildcare, so my husband can drop the baby off at daycare
in the mornings, and I handle the pickup in the evening.
The three of us are making the effort to maintain a balance
between childcare and work.
It can be tough to strike that balance when time islimited, for example, when I found out I was pregnant with
our second baby after I returned to work, or when I get asudden call from the daycare because our child is ill or not

feeling well. It is
thanks to the people
at my workplace who
understand mysituation, my husband
who helps out withhousework and childrearing, and myparents who lend a
hand when the baby
is sick that I am able
to work, and I am
grateful for that. It is
pretty hectic when I get home, as I have to get dinner readyand prepare the bath, but I am leading a busy but fulfilling
life, encouraged by the smiling faces of my child and family.

Regular new hires (general staff group) Mid-career hires
Toyo Denki Seizo Report 201324

Reports by Stakeholder

Initiatives to Deal with the Environment and Local Communities

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

Unit

Fiscal 2008

Men

Men

700 *1748 *2744 *2791 *3

649

697

693

735

44

51

51

51

56

%

6.5

7.3

6.8

6.9

7.1

163

170

171

155

152

162

169

170

153

151

1

1

1

2

1

0.6

0.6

0.6

1.3

0.7

39.7

39.7

40.8

41.1

41.0
41.1

Persons

Women
Ration of female administrative professionals%
Overall

Average age

Men

Fiscal 2012673 *1

Total
Number of administrative professionals

Fiscal 2011

629

Women
Ratio of female employees

Fiscal 2010

Persons

Total
Number of employees

Fiscal 2009

40.0

40.0

41.1

41.4

Women

35.7

35.7

36.5

38.2

38.9

Overall

15.8

16.2

16.4

16.5

16.1

Years

16.0

16.4

16.6

16.7

16.3

13.0

13.3

13.5

14.6

14.5

Average annual salaryYen

5,899,196

5,831,972

5,953,210

6,039,332

5,885,559

Overturn rate (within 3 years of joining the Company)

%

0.0

5.9

5.9

13.5

3.8

Average years of employment

Men

Age

Women

Number taking childcare leave

Persons

1

0

1

2

3

Number taking family care leave

Persons

0

0

0

0

0

Number of temporary staff (including part-timers)

Persons

180

222

155

149

167

*1 Number of regular employees excluding Executive Officers*2 ‌Number of regular employees including Executive Officers and number of special employees, temporary
employees and temporary and part-time employees*3 ‌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

Initiatives to Protect the Environment
With a view to realizing an environment-friendly society, the Company will further strive to provide more
efficient and energy-saving products that generate lower noise, while promoting the reduction ofenvironmental burden.

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 bydrawing 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 measuresat 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

Aiming for realization of a Sustainable Society

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

Unit
Total

Number of Officers

Men

Persons

Women

Fiscal 2008

Fiscal 2009

Fiscal 2010

Fiscal 2011

Fiscal 2012

10

10

12

10

10

10

10

12

10

10

0

0

0

0

0

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

Notes

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.)
Item

Fiscal 2008

Fiscal 2009

Fiscal 2010

Fiscal 2011

Fiscal 2012

Number of employees at Group companies in Japan and overseas Persons

Unit

374

373

429

431

379

Number of temporary staff (including part-timers)

154

131

107

86

89

Notes

Persons

As of May 31 for each fiscal year

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

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)

Maternity leave

Can be taken for up to 8 weeks after birth.

Childcare leave
Maternity andchildcare related

Repeat childcare leave(Mom and Dad Childcare
Leave Plus)
Shorter working hours forchildcare
Nursing leave
Family care leave

Family care related

Other

25

Family care work hours
System for Rehiring
Employees

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 the child reaches one year of age. Further, if the employee andspouse both take childcare leave, the childcare leave period can be extended until the child reaches 1
year and 2 months.
Working hours may be set at 5 hours 45 minutes or 6 hours 45 minutes per day for a period as neededfrom the end of childcare leave until the child graduates from elementary school.
Up to 5 special days off may be taken per family member for nursing care for pre-elementary school age
children.
A total of up to 3 years of family care leave may be taken per person needing care.
Employees not taking family care leave may limit working hours to 5 hours and 45 minutes or 6 hours
and 45 minutes per day.
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.

A sustainable society as envisaged by the Company is the
combination of a “low-carbon society,” a “recycling-basedsociety” and a “nature-symbiotic society.”
The Company has produced numerous products thatfacilitate the efficient use of energy, including highefficiency motors and inverters that capitalize on theamalgamation of our outstanding motor drive technology
and other state-of-the-art technologies. In the meantime,
the Company has been striving to reduce the size andweight of its products as part of its efforts to conserve
resources, while lowering the level of noise involved in theiru s e t o m a k e t h e m f r i e n d l i e r t o t h e s u r ro u n d i n genvironment. As a member of society, the Company will
make further contribution to make society moresustainable, fully utilizing on its environmental technologies
on a global scale, while following through various
environmental actions at each of its bases.

Environment technologies of theCompany
Energy conservation at each baseUse of sustainable energy

Low-carbon society
Implementation of measures against
global warming

Recycling-based society

Waste reduction and recyclingat each basePromotion of waste reduction
and recycling

Nature-symbiotic society

Initiatives for control overchemical substances

Conservation of biodiversity

Environmental Management System
In order to tackle environmental issues on an independentand continuous basis, the Company has developed andoperates an environmental management system andthereby obtained ISO 14001 certification. This certification
has been acquired for all offices and the production bases
Yokohama Plant and Shiga Factory.

Years of ISO 14001 certification

Shiga Factory

2001

Yokohama Plant

2004

Extended to all
offices

2010

Toyo Denki Seizo Report 201326

Initiatives to Deal with the Environment and Local Communities

Initiatives to Prevent Global Warming

Initiatives for Reducing Disposed Waste as Well as Recycling

Initiatives to reduce greenhouse gas (CO2) emissions
The Company is promoting energy conservation at eachof its production bases and offices to reduce its CO2
emissions.
At the production bases in particular, the progress ofenergy-saving efforts at workplaces is checked on amonthly basis to encourage an energy-saving awarenessamong employees, along with general power-saving andstreamlining at production facilities.

Main actions

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

800

653.6

600

400

720.7
317.2

637.0

227.8

400

Gas (Unit: 1,000 Nm3)

Electricity

631.8

590.9
252.0

244.6

232.0

100

0

0
2008

At the Company’s main production base, the Yokohama
Plant, the targeted 1% year-on-year reduction of CO2
emissions per unit of production output has not beenachieved this year, which is primarily attributable to adecrease in the production volume at the plant as well as
an increase in the actual CO2 emission factor at the Tokyo
Electric Power Company.

The Company successfully reduced its landfill waste rate
to 0.9% in fiscal 2012, as a result of thoroughly
implementing waste processing rules, sorting of metal
waste and recycling of paper resources.

200

200

Targeted reduction of CO2 emissions and progress status

300

2009

Promotion of green procurement

2010

2011

2012

(year)*

Volume of landfill waste

Output of general and valuable waste

(t)

25

(t)

800

24.2

693.4

20

Total water input/output at Yokohama Plant

15(Unit: 1,000 m3)

25

Water input

23.2

20

22.8
18.0

22.5
17.9

15

21.1
15.8

Water output

19.9
15.8

The Company is promoting green procurement withrespect to office equipment and supplies, stationery andworker’s clothes used at the Yokohama Plant. A 70%
green procurement ratio was achieved in fiscal 2012
based on purchase value.

13.0

12.4

703.5

637.4

5.6

5.0

2011

2012

200

0
2008

2009

587.9

400

10
5

13.9

710.0

600

2010

0

(year)*

2008

10

2009

2010

2011

2012

(year)*

502008

Use of sustainable energy
The Company in July 2012 installed a 500 kW solar
power system on the roof of the Yokohama Plant forthe purpose of cutting power use at peak times.
Electricity generated by this system is used entirely
within the plant. A more than 5% reduction in the useof externally supplied electricity was achieved in the
one-year period following its installation.
Thanks to the in-house electricity generation by thesolar power system, the plant is capable of securing asufficient supply of power on its own during daytime tooperate its communication infrastructure and maintaina minimum level of business execution, even in theevent of major disasters such as earthquakes.

2009

2010

2011

2012

(year)*

Initiatives for Control over Chemical Substances

Total CO2 emissions at Yokohama Plant
(t)

4,000

3,262.3

3,000

3,479.2
2,905.0

2,896.7

3,307.3

2,000
1,000
0
2008

2009

2010

2011

2012

(year)*

Based on 12 kW generator

500,000

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

10,000
8,000

8,800
7,160

7,900
6,060

6,000

Total amount of shift

9,600
7,700
5,320

4,000

4,600

7,300
4,810

2,000
0
2008

2009

2010

2011

2012

(year)**Period from April to following March.

Total solar power generation at Yokohama Plant(kWh)

Volatile organic compounds (VOCs) emitted as a result ofour business activities are adequately controlled and theamount of emission in monitored under the Pollutant
Release and Transfer Register (PRTR).
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.
We will further engage in the reduction of waste
through such measures including using non-VOC materials
and implementing recovery and reuse of solvents.

Based on 500 kW generator

433,862.6

400,000
30,00020,00016,219.7

15,388.5

16,275.6

2010

2011

2012

10,00003,217.1
2009(year)*

Solar power system at Yokohama Plant

27

Toyo Denki Seizo Report 201328

Initiatives to Deal with the Environment and Local Communities
Environment-Related Data
Indices

Input

Electric power (10,000 kWh)Urban gas (1,000 Nm3)
Water input (1,000 m3)CO2 emissions (t)Yokohama
Solar power generation (kWh)
Plant
Water output (1,000 m3)
Total amount of air emissions (kg)
Total amount of shift (kg)Amount of air
emissions
Bisphenol A (kg)
Total amountof shiftAmount of air
emissions
Ethylbenzene (kg)Domestic

Total amountof shift
PRTR*1

Amount of air
emissions
Xylene (kg)OutputTotal amountof shift

Tetrahydromethylphthalicanhydride (kg)Amount of air
emissions
Total amountof shiftAmount of air
emissionsToluene (kg)
Total amountof shiftIndustrial waste (tons)
General waste (tons)
Valuable metal waste (tons)
WastesWaste output ( + + ) (tons)
Recycled amount (tons)
Volume of landfill waste (tons)
Percentage of landfill waste (%)
Yearly comparison

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
Total power generation
Based on 500 kW generator
Based on 12 kW generator
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
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
Production bases total
Yokohama Plant
Shiga Factory
Production bases total
Yokohama Plant
Shiga Factory

Fiscal 2008
653
653
227
227
23
23
0
3,262
3,262
18
18
0
8,800
7,160
0
0
0
1,600
1,600
0
2,100
2,100
0
150
150
0
3,700
3,700
0
120
120
0
0
0
0
4,700
4,700
0
3,000
3,000
0
590
590
0
198
198
115
115
379
379
693
693
560
560
13
13
1.9
1.9
-

Fiscal 2009
662
637
25
232
232
22
22
0
2,985
2,896
89
3,217
3,217
17
17
0
7,900
6,060
0
0
0
940
940
0
1,700
1,700
0
230
230
0
2,900
2,900
0
190
190
0
0
0
0
3,700
3,700
0
3,300
3,300
0
1,000
1,000
0
242
242
113
113
354
354
710
710
556
556
12
12
1.7
1.7
-

Fiscal 2010
756
720
36
18
317
317
22
22
0
3,585
3,479
106
212
16,21916,219
15
15
0
9,600
5,320
0
0
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
319
292
27
130
130
280
280
730
703
27
524
524
51
24
27
7.0
3.4
100.0

Fiscal 2011
667
631
35
16
244
244
21
21
0
3,014
2,905
109
231
15,38815,388
15
15
0
7,700
4,600
0
0
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
316
282
34
114
114
240
240
671
637
34
436
436
39
5
34
5.9
0.9
100.0

Fiscal 2012
624
590
33
20
252
252
19
19
0
3,456
3,307
149
169
450,138
433,862
16,275
13
13
0
7,300
4,810
0
0
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
266
230
35
101
101
255
255
623
587
35
432
432
40
5
35
6.5
0.9
100.0

Remarks

*3

*4

29

We are committed to various social contribution activities, to facilitate our own co-existence with
communities and to foster young people who will represent the next generation.

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

*5
*6

*7
*8

*9

*10
*10
*10
*10
*10
*10

As an electrical manufacturer that contributes to thedevelopment of railways and industries in general, theCompany is committed to providing young people, whowill represent the next generation, with various educational
opportunities. The goal is to have them appreciate the role
manufacturers must play in achieving a sustainable
society, and thus to nurture an environmental awarenessamong them.

Receiving interns
We are committed toactivities that raiseawareness andappreciation of ourmanufacturing expertise by
accepting interns fromlocal technical high schools
and providing them withhands-on experience at
An intern at work
manufacturing sites. This
internship system serves
as an effective means of recruiting outstanding technicalstaff on a consistent basis as some students in theschools apply for positions at the Company.

Environmental workshops at schools
The Company engages inenlightenment activities by
dispatching its employees
to hold lectures on theenvironment at educational
institutions such as
elementary schools. The
idea is to inform the publicof the fact that railways,
An environmental workshop at anparticularly those using
elementary school
electric trains, is a modeof transport that produces less CO2 emission than othermodes, and of the Company’s profound historicalcommitment to the development of environmental
technologies used by railways.

On-demand lectures on career workshops
The Company also dispatches its employees, primarily
engineers, for a career workshop at educational
institutions. The employees provide useful information topromote autonomous career choice among the students
at junior high schools and high schools. We offer
audience-friendly presentations that provide practicalinformation on the design and development work at
manufacturers.

*11

Aiming to be a Factory Trusted by All Members of Local Communities
Factory tours
*11

*11

*11

*Non-production bases: Toyo Denki Seizo Head Office, Osaka Branch, Nagoya Branch, Hokkaido Branch, Kyushu Branch, Hiroshima Branch*1 PRTR: Pollutant Release and Transfer Register*2	Data collection started at Shiga Factory in fiscal 2009 due to a revision of Japan’s Act on
the Rational Use of Energy, prior to which no data existed.
*3 ISO14001 certification was acquired for non-production bases in June 2010.
*4 Production activities at Shiga Factory recorded close to zero water input.
*5	Data collection started at Shiga Factory in fiscal 2009 due to a revision of Japan’s Act on
the Rational Use of Energy, prior to which no data existed.

Contributions to Local Communities*2*6 Data collection started in fiscal 2010.
*7 500 kW solar panel became operational in July 2012.
*8 12 kW solar panel became operational in January 2010.
*9 Production activities at Shiga Factory recorded nearly nil water output.
*10 Bisphenol A has been inapplicable thus outside the scope of registration since fiscal 2010.
*11 Data collection started at Shiga Factory in fiscal 2010, prior to which no data existed.

We are conducting“factory tours” to provide
opportunities formembers of local
communities to actually
see our manufacturing
A factory tour attended byfacilities and products inelementary school pupils
order to develop deeper
understanding about the business operations of theCompany. During these tours, we inform the participantsof our products as well as our actions for environmental
protection, in an effort to build up relationships built on
trust with local communities.

Contributions to blood donation campaign
As a gesture of support for the
blood donation campaign by theJapanese Red Cross Society, ourYokohama Plant welcomes blood
donation buses onto its premises
on a regular basis. Many employees
offer their blood through cooperative
promotional activities organized by
the Company and the labor union.

A blood donation site

Toyo Denki Seizo Report 201330