1-1 Toyoda-cho, Kariya-shi, Aichi 448-8651, Japan

https://www.toyota-boshoku.com/global/

Human Capital Report2023

Purpose of the Human
Capital Report

Overview of humancapital strategy

Based on our Vision, “Looking into
the future, we will create tomorrow’s
automobile interior spaces that will
inspire our customers the world
over,” we aim to be a company inwhich company members withdiverse values and ways of thinking
can cooperate and grow together.
We have prepared this reportbecause we believe that in order for
our various stakeholders to better
understand our company, it isnecessary to clarify the challenges
and goals of our current humanresource strategy, and to publicize
our initiatives in this area.
Going forward, we will maximize
the value of human capital andenhance corporate value throughdialogue and feedback on thecontent of this report.

VisionThe company we aim to become

CONTENTS

1 The company we aim to become

Vision ............................................................................................... . . . . . . . . . . . . 02
Message from the CHRO ................................................... . . . . . . . . . . . . 03

Materiality
Issues to address to realize
the company we aim to become

Management strategy
BusinessstrategyHRstrategy

2 Materiality

Toyota Boshoku Group’s Materiality ........................ . . . . . . . . . . . . 05

strategy and3 Businessthe areas of activity

1

1 2 3 4 5
Vision (the company we aim to become)The company we aim to become

VisionKey points of business and
HR strategies for achieving materiality .................. . . . . . . . . . . . . 07

4 Human resource strategy target
5 HR strategy—policies and KPIs

Human resource strategy themes and target .... . . . . . . . . . . . . 09

1 Clarification of required human resources . . . . . . . . . 11
2 Securing of talented human resources ...... . . . . . . . . . . . . 13
3 Support for growth ....................................................... . . . . . . . . . . . . 15

Personnel measures

4 Penetration of Diversity & Inclusion ............. . . . . . . . . . . . . 17

Looking into the future, we will create
tomorrow’s automobile interior
space that will inspire
our customers the world over.

5 Pursuit of ease of working .................................... . . . . . . . . . . . . 19
6 Promotion of health & safety .............................. . . . . . . . . . . . . 21
7 Adherence to compliance and ethics .......... . . . . . . . . . . . . 23

List of KPIs ................................................................................... . . . . . . . . . . . . 25

Scope of reporting
The information in this report applies to the
Toyota Boshoku group in Japan and otherregions throughout the world. However, thescope of reporting differs for each initiative.
Information disclosure in this report is carriedout using the reporting definitions shown on
the right.

01

TOYOTA BOSHOKU Human Capital Report 2023

Period covered by the report
Toyota Boshoku group: Japan, The Americas, China, Asia & Oceania, and Europe &Africa regions
Toyota Boshoku: Toyota Boshoku Corporation
Japan region: Toyota Boshoku Corporation and Japan affiliates

This report contains performance data forfiscal 2023 (from April 1, 2022 to March 31,2023). Some information on activities outside
this period is also included.

Offer “QUALITY OF TIME AND SPACE” in all mobility

TOYOTA BOSHOKU Human Capital Report 202302

1 2 3 4 5Vision (the company we aim to become)* Mobility as a Service: This is a concept for seamlessly linked new mobility that combines all types of transportation other than personally owned vehicles as one service

Message from the CHRO

Striving to harness
the potential of our diverse
human resources and createa culture in which people
around the world say,
“I like Toyota Boshoku”
Yasuhiro Fueta
Chief Human Resource
OfficerAiming to be a company where people
with diverse identities can cometogether and flourish
I believe that human resources are a company’s most
crucial asset. The 2030 target of the Toyota Boshoku
group is to “become a company, as an Interior Space
Creator, which realizes comfortable mobility spaces
and contributes to solving social issues while
expanding our product range and customer base.”
To achieve this, we need to create an environment inwhich people with diverse identities are attracted to
the Toyota Boshoku group and come together, freely
sharing their opinions and respecting each other, sothat new values and ideas can continue to be born.
Returning once again to the words of Sakichi Toyoda,
founder of the Toyota Group and founder of Toyoda

03

TOYOTA BOSHOKU Human Capital Report 2023

Boshoku (the current Toyota Boshoku), “Open thedoor, it’s a big world outside,” we want to build
mechanisms that allow all company members to takeon challenges with a sense of excitement and flourish
as they look toward new possibilities.

Developing the potential of each andevery company member as a major
force for our growth and development
In 2004, Toyoda Boshoku, Araco, and Takanichi
merged to form Toyota Boshoku, and in recent years,
members of Aisin Shiroki’s automotive seat businessand Toyota Auto Body Seiko have joined us. We also
actively recruit non-Japanese members, people withdisabilities, and mid-career professionals, bringing

together a diversity of talent. At the same time, I feelthat we have yet to fully optimize the potential ofthese diverse human resources.
I believe that if we can leverage the views andideas of each company member, or the abilities andpotential that he or she is unaware of, in our businessactivities, it will be a great source of strength and has
tremendous potential to lead to the dramatic growthof the Toyota Boshoku group. In 2023, we launched a
100-Member Committee (see figure below) consistingof members with diverse identities, both from Japanand outside Japan, and we are drawing on thesemembers’ diverse approaches and ideas in our HR
strategy and personnel system reforms.

Clarifying the HR challenges in orderto grow into an Interior Space Creator
Our customers’ expectations for a comfortable
automobile interior space are expected to grow in
the future due to changes in the automotive market
along with the evolution of battery electric vehicle(BEV) and MaaS,* as well as the diversification ofuser needs. To properly seize this opportunity,
besides honing our MONOZUKURI competitivenesswe will need to enhance the value we provide tocustomers and expand our customer base, growing
into an Interior Space Creator that can plan andpropose the entire automobile interior space. To
achieve this, we need to formulate an HR strategy
that is consistent with our business strategy. We

have clarified the areas of activity where humanresources are needed, as well as their quality andquantity, and again reviewed how to secure them,and how to create an organization that can draw out
the full potential of these human resources andenable them to play an active role. We then defined
the themes to be addressed, our target, and thespecific personnel measures, and established KPIs
to manage their progress.

Aiming to be a company that attracts
even more people, and which
resonates with them
We have inherited and will continue to embody
Sakichi Toyoda’s founding spirit of “for the world andfor people,” and we hope to be a company that
attracts and resonates with many more people. In
recent years, the environment surrounding humanresources has changed dramatically with the
declining birthrate, aging population, increasing
mobility of human resources, and the emergence of
ChatGPT, among other developments. Our humancapital management initiatives are only just getting
started. By establishing and leveling up a cycle ofhuman capital management to achieve our desired
status, we hope to realize the well-being of all ourcompany members, their families, and ourcustomers. We will continue to promote ourtransformation into a culture of which people aroundthe world can say, “I like Toyota Boshoku.”

100-Member Committee

Objective

Establish a committee composed of members covering adiversity of human resources in terms of qualification, job
type, site, and gender, and have members representing
each position give us their opinions to ascertain the “realvoices” of a broad spectrum of company members, so as
to create better HR strategy and personnel measures

Each split 50/50, men and women
Europe & Africa Region

Asia Region

Members

Select members with as little bias as possible in terms ofdepartment, age, gender, and other attributes

Activities

Provide candid opinions and feedback on the HR strategy
and measures, etc. currently under consideration(1) Participate in opinion exchange meetings(2) Respond to questionnaires on personnel measures

10

China Region

10
10

The Americas
Region10

Compositionof members(numbers ofpeople)45

Japan region
Toyota Boshoku

15

Domestic affiliates

TOYOTA BOSHOKU Human Capital Report 202304

2

1 2 3 4 5
Materiality

Materiality

Toyota Boshoku Group’s Materiality

Connection between materiality and human capital management

Issues Relating to Safety, Environment, and Comfort to Resolve through Our Business Operations

Issues Relating to thePeople and Organizations
that are Our Sources for
Exercising Competitiveness

Issues Relating to Safety, Environment, andComfort to Resolve through Our Business Operations

Materiality

1

Comfortable
spaces2

Climate change

We will develop people capable of contributing
to society, who have diverse values, a challenging
spirit and understand the value of strong teamwork
Respect forhuman rights

2

Aging society

Together with our business partners, we will realize
MONOZUKURI innovations that minimize environmental stressproductivity
Improvement

4

Reduction of
traffic accidents

Company-member
health and work safety

3

Energy and resource
conservation

GovernanceCompliance

To contribute to the ambitious target of a society of “zero trafficcasualties,” we will continue to offer high-quality, high-safety
products (integrated seats, seatbelts, airbags, and other suchproducts) and services that optimize Toyota Boshoku’s
strengths in R&D that is part of Toyota Boshoku’s identity.

Together with our business
partners, we will realize
MONOZUKURI innovations
that minimize environmental
stressAiming for a sustainable global environment in which children
can live happily with smiles on their faces, we will makeeffective use of business resources and achieve the targets set
out in our 2050 Environmental Vision, including zero CO2emissions, zero wastewater from production processes, andminimal volumes of natural resources used and waste
produced. To accomplish this, we will work with our business
partners to realize innovation and improve productivity in
MONOZUKURI (and all manufacturing-related processes),utilizing the latest leading-edge technologies.

Issues Relating to the People and Organizations that are Our Sources for Exercising CompetitivenessMateriality

In July 2020, we identified the key issues to be prioritized through our business operations from among a variety
of social issues, and defined as five materialities the approach we adopt to resolve them.
To achieve our Vision, we are working to resolve issues related to Safety, Environment, and Comfort ( , , and) through our business strategy, and at the same time, we are promoting human resource strategy initiatives toresolve issues related to People and Organizations (and) in order to demonstrate our competitiveness.

The meaning and concepts of materiality

4

We will develop people
capable of contributing tosociety, who have diverse
values, a challenging spirit
and understand the value ofstrong teamwork

To continue challenging ourselves to find solutions for theworld’s problems, we will develop autonomous humanresources by bringing together talented individuals fromaround the world, who understand different ideas andways of thinking, respect one another, and think together.

5

We will continue to be acompany of integrity trusted
by all our stakeholders,inheriting our tradition of
fairness and moral behavior
to the next generation

To continue being a company that is trusted by all
stakeholders and grows together with them, we will continue
to practice “ensuring that our corporate activities are fair andtransparent,” as enshrined in our corporate philosophy and
the Principles of Toyoda that embody the concepts of
Sakichi Toyoda, while “doing what is right” as laid down in
the TB Way.

About materiality

TOYOTA BOSHOKU Human Capital Report 2023

Toyota Boshoku group has consistently developed its
operations “for the world and for people,” expanding fromtextiles into automotive interiors and contributing to theenhancement of safety and reassurance in people’s daily lives.
We are evolving into an Interior Space Creator, providing
products and services such as those employing sensor-based
biometric information to achieve comfort, which means
enabling people to live with confidence while staying true toUsing our establishedtechnical capability, we willcontribute to realize asociety with no trafficcasualties throughproviding products thatassure safety

We will continue to be a company of integrity trusted
by all our stakeholders, inheriting our tradition of
5 fairness and moral behavior to the next generation

In the figure, the vertical lines are like the warp threads in a loom, representing society, while the interwoven
horizontal weft threads represent the group. The five materialities are represented by shuttles, which pass weftthreads between the warp threads, as a representation of the group’s interwoven efforts to achieve its Vision andrealize a sustainable society through its business operations.

05

Related SDGs

themselves (realization of smart cities).

Promotion of
innovation

Using our established technical capability,
we will contribute to realize a society with no traffic casualties
through providing products that assure safety
Product safety

3

1

As an Interior Space Creator, we will contributeto people’s quality of life, creating comfort,
safety, and reassurance through innovation

As an Interior Space
Creator, we will contributeto people’s quality of life,
creating comfort,
safety, and reassurance
through innovation

The meaning and concepts of materiality

Related SDGs

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1 2 3 4 5
Business strategy and the areas of activity

Business strategy and the areas of activity

1 Total Quality Management: To maintain a flexible and resilient corporate structure, aiming to increase the capabilities of humans,
the organization and processes founded on the basic TQM philosophy of “total participation,” “customer first,” and “continuous kaizen.”
2 Original Equipment Manufacture
3 Noise and Vibration
4 Connected, Autonomous, Shared, Electric

Key points of business and HR
strategies for achieving materiality

Three areas of activity
Expansion of added value

Non-Toyota

1. Core area: Promotion of MONOZUKURI
enhancement and DX
In the core area, which is our primary business, wewill strengthen our competitive advantage byimproving the quality of manufacturing andincreasing efficiency through the promotion of digitaltransformation (DX). We will focus on acquiring andtraining highly skilled and talented human resources.
2. Customer expansion area: Market expansion
In the customer expansion area, we will work to
expand existing markets and enter new markets.
Here, it will be essential to strengthen our marketingand sales teams to meet market needs. In this area,
we will respond flexibly to the market by actively
recruiting outstanding marketing professionals with a
global perspective, in addition to training andpromoting local executives outside of Japan.
3. New value area: Expansion of value provision
In the new value area, we will expand the value we
provide through innovative approaches, and develop
new business fields. We are looking to recruit people
who can draw on creative, out-of-the-box thinking
to come up with issues and questions to tackle, anddesign solutions to realize a new vision.

Automotive

Based on our knowledge and technology inautomobile interiors, we are in a position to provide
value for the next generation of mobility and offer
mobility services that match the demands of ourcustomers.
Leveraging this strength, we will focus onproviding future-oriented mobility services andrespond flexibly to market changes.
Furthermore, we have the potential to propose
and realize new value not only globally, but also in awide variety of markets outside the automotive sector,
such as aviation and Shinkansen (bullet trains).
In order to utilize this potential and realize ourbusiness strategy, we believe it is important toimprove our capability in terms of both added value
and markets, and have defined three areas of focus
as our areas of activity.
As our HR strategy, we will work to acquire thehuman resources needed in each of these areas.

Nonautomotive

Three areas of activity

Market expansion

Business and HR strategies

ToyotaInterior components and systems
Improving productivity ofexisting core business• Improve the break-even point
through factory reorganization andlocal procurement at eachregional site
• Enhance TQM1 by streamlining thedomestic supply chain, including
business partners• Pursue optimal production using
autonomation, IoT, and AI

Securing our territory as aninterior system supplier• Through cooperation with othercompanies and OEMs,2 develop a
lineup of superior items befitting of
our status as an interior system
supplier that serves as “Home”• Expand the seat device
development area (NV3performance, side collision
management, etc.)

Expansion into emerging markets• Win new orders for seat businessin growth markets• Build supply chains with supply at
optimal quality/cost

Expansion of demand forelectrification-related products• In electrification-related products,
expand from single productbusiness to assembly and systemproducts

Expansion into European andUS markets• Expand orders throughproposal-based sales

Size of the circles: Scale of sales

Added value

2030

ISC

High

Low

Present

Making automobile interior space comfortable
Proving safe and secure products
Environment-friendly BEV products

Improvingprofitability
Products ofshrinkingmarket

Area

Seats

Considering
withdrawal
ShrinkingStableExpandingCore area

Definition

New value area

Required human resourcesCore area

Customer
expansion area

An area in which we increase productsales to growth markets and build
efficient supply chains to promote
expansion worldwide, including into
non-automotive fields (additional
brands, geographic regions, sectors)• Local executive human resources on a global basis• Human resources with global planning andnegotiation skills• Human resources from different industries, who can
re-examine business strategy• Marketing personnel responsible for developing newmarkets and expanding our customer baseAn area in which we develop projects
to address new types of mobility andfuture mobility spaces, makepioneering proposals for the CASE4
and MaaS markets, and conduct R&D
for new business creation• Human resources capable of creating new value
through integration of advanced technologies andtheir insight into trends• Human resources who can design spaces based on
specialized fields such as Kansei engineering andergonomics• Human resources with the ability to think and act
with an eye on the future• Human resources who can solve social issues andhelp to create an enriched society

Electrified products

New value area

Unit components• Solve food problems• Create recycling-oriented materials• Human resources capable of strengthening the fields
of electronic control and information technology• Human resources who can fundamentally reform theway business is conducted by utilizing DX• Maintenance personnel with expertise in both
hardware and software• Human resources with outstanding sewing skills

Newbusinesses(Cabin air filters, fuel cell related products,
next-generation powertrain related products)

R&D for new business creation

An area in which we createhigh-quality products and leverage
our advanced technologicalcapabilities to expand the types andfunctions of our products

Comfort: Air quality
Interior/exterior

Establishment of
space solutions business• Become a company that proposes
state-of-the-art interior design andmobility experiences, both forautomobiles and modes oftransport other than automobiles• Create new value in theautomobile interior space throughinvestment in start-up companies• Build business models aimed atentry into next-generation mobility• Create new businesses thattranscend the boundaries of theautomobile interior space by
expanding the range ofapplications for electric products

Customer expansion area
Non-automobile• Design and manufacture seats for aircraft, Shinkansen (bullet trains), andother modes of transport besides automobiles

Image of a Business Portfolio• Expanding added value beyond the classification of seats and interior/exterior components as
the Interior Space Creator (ISC)• Investing in growth fields such as electrified products and developing new businesses

Interior space solutions

Market growth

07

TOYOTA BOSHOKU Human Capital Report 2023

TOYOTA BOSHOKU Human Capital Report 202308

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1 2 3 4 5
Human resource strategy target

Human resource strategy target

HR strategy

Human resource strategy themes and target

Target1

Clarification of required
human resources

Aim to secure the required human resources in thethree areas of activity in a timely and efficientmanner by establishing systems for recruiting anddeveloping human resources based on the humanresource portfolio, and for monitoring humanresource activities.

2

Securing of talented
human resources

Maintain or enhance the competitiveness of
personnel recruitment required in the areas ofactivity in order to become an Interior Space
Creator and expand globally.

p. 13

3

Support for growth

From the perspective of seeking innovations for the
future, aim to develop human resources who bringflexibility and creativity, and contribute to thegrowth of the organization as a whole through their
deep knowledge as experts and understanding of awide range of industries and business perspectives.

p. 15

4

Penetration ofDiversity & Inclusion

Aim to create an organization in which people withdiverse backgrounds and values can create newvalue by respecting and optimizing each other’s
differences.

p. 17

Pursuit of ease ofworking

Through the development of flexible, efficient, andcreative work rules and an open workplace,encourage new challenges and create anenvironment in which company members can work
happily with enjoyment.

p. 19

6

Promotion ofhealth & safety

Based on the belief that priority should be placedon health and safety at work, promote healthmanagement and safety & health management torealize an environment in which company
members are both mentally and physically healthy,
and can work with peace of mind.

p. 21

7

Adherence tocompliance and ethics

Aim for continuous organizational operation and a
reliable environment by implementing initiatives aswell as risk management to ensure adherence tocompliance and respect for human rights.

p. 23

p. 11

To realize our business strategy, we will address human resource measures under seven themes, and define thegoal of each initiative as the “target.”Realization of business strategy
Expansion of existing business & creation of new businessRealization of
Well-being

People gather and grow together

1

Clarification of required
human resources

New value area

2

Securing of talented
human resources

Customer expansion area

3

Support for growth

5

Core area

Three areas of activity

An organization that optimizes and mutually enhances diversity

409

Penetration ofDiversity & Inclusion

TOYOTA BOSHOKU Human Capital Report 2023

5

Pursuit of ease ofworking

6

Promotion ofhealth & safety

7Adherence tocompliance and ethics

TOYOTA BOSHOKU Human Capital Report 2023

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1 2 3 4 5
HR strategy—policies and KPIs

HR strategy—policies and KPIs

HR strategy

1Clarification of required humanresources

Priority policies and specific initiatives

Priority policy

Aim to secure the required human resources in the three areasof activity in a timely and efficient manner by establishing systems
for recruiting and developing human resources based on the humanresource portfolio, and for monitoring human resource activities
We are formulating our HR portfolio by analyzing medium-term market changes, technological advances, andcompetitive trends, and by clarifying the quality and quantity of human resources needed. By regularly
monitoring the progress of our plan, conducting reviews, and linking this to hiring and training measures, we willrealize prompt and appropriate HR recruitment. Furthermore, with regard to the success of the human resources
we have secured, we have established specific KPIs and evaluation criteria, and are building a system that willallow us to continuously monitor their adaptability and results.
We are also promoting the appointment of local personnel as the presidents of business sites in countries
outside Japan and at Regional Management & Collaboration Hubs, and are also pressing on with initiatives so
as to optimize seconded coordinators (non-Japanese line managers) and shift returning employees to newareas. Through these initiatives, we will implement optimal use of human resources throughout the company andcontribute to enhancing the performance of the entire organization.

FY2024 data
Number of company members / Full-time equivalent (FTE)

8,301
8,250

2023

2022

5.49

2023

2022

2021

(FY)

Number of ICTs
Number of trainees

202

25.3

191

21.7

29

%

2021

11

2022

2023

2031

(Target)TOYOTA BOSHOKU Human Capital Report 2023

9
(FY)

2021

and build mechanisms for implementing a PDCA cycle

Details• Formulation of a human resources portfolio• Visualizing KPIs

2022

2023

(FY)

Based on the mid-term HR portfolio, we are collecting thenecessary data and incorporating this into a data infrastructure inorder to comprehensively and effectively visualize the activities of
the human resources we have secured and to make management
decisions using quantitative data.

Focusing on the three areas of activity, forecast, analyze, andformulate the required capabilities, number of people, and timing.

• Global HR platform
Optimize human resource allocation at a global level by applying acommon global HR platform for managerial positions and above.

Priority policy

Policy objective

Resource shift to new areas
through optimization of
coordinator assignment

Main KPIs• Operate overseas businesses under a cleaner structure
by enabling direct interaction between company
members at the head office in Japan and local
company members at overseas entities, and shift
resources to new areas• Percentage of local company

members in positions such aspresidents of sites outside Japan• Number of coordinators• Number of ICTs
• Number of trainees

2021

2022

Actively accept intra-corporate transfer (ICT) personnel/trainees
from various sites, including mid-level company members, in orderto facilitate communication between local members of overseas
business entities and the head office in Japan. In addition,
establish a system whereby sites outside of Japan can contact andconsult directly with each function, segment, and field at the head
office in Japan, with the returned secondees (including
coordinators) as the contact points.

Global headquarters

Overseas business entities

55 60 75

Top positions oflocal sites

2023

2030

2031

Realizing Interior Space Creator(VP or higher position of
the controlling company,
top position of
production sites)

Optimalassignment

Management

Local company
members

122023• Promote globalization of Japan head office

(FY)

53

48

176

• Human capital ROI• Total personnel expenses• Number of company members• Full-time equivalent (FTE)• Number of outside workers• Quantitatively analyze progress on the headcount plan and the success of human resources,

Visualizing KPIs

overseas entities

Number of persons on
intra-corporate transfer (ICT) / trainees

%

25.6

human resources needed in the three areas of activity
that are essential for future business growth

Dispatch a large number of Japanese coordinators to overseas
business entities to ensure smooth coordination with the head
office in Japan. Promote the appointment of local personnel as thepresidents of business sites in countries outside Japan and insenior positions at Regional Management & Collaboration Hubs so
as to optimize these coordinators and enable returning company
members to flourish in new areas (such as ISC and BEV).

Number of coordinators(Japanese non-line managers)

80.0• Establish a structure for systematically securing the• Shift resources to new areas and promote localization of

%

5.26

Human capital ROI = operating profit / human capital cost.
Human capital cost is calculated using labor costs.

Percentage of local company
members in positions such aspresidents of sites outside Japan

Drawing up a mid-term
headcount plan

Main KPIs

Details

5.53

8,244
8,181

8,264
8,208

2021

Human capital ROI (%)

Full-time equivalent (FTE)

Number of company members

Policy objective

Japanese line Japanese non-line
top position manager(President) (Coordinator)

Approx.

200

peopleAcquiring new overseas
customers using language ability
Leveraging coordinator personnel
to promote shift in human resources
Promoting new businesses(FY)(Target)TOYOTA BOSHOKU Human Capital Report 202312

1 2 3 4 5
HR strategy—policies and KPIs

HR strategy

2

Securing of talented human resources

Maintain or enhance the competitiveness of personnel recruitment
required in the areas of activity in order to become an Interior Space
Creator and expand globally

Priority policies and specific initiatives

Priority policy

Secure human resources

Policy objective• Bring together outstanding human resources fromdiverse backgrounds who can demonstrate their uniquepotential in the three areas of activity and who share ouraspirations

FY2024 data
Administrative and engineering employees: Number of
recruits by new graduates/mid-career hires, and gender
New graduates (men)Mid-career hires (men)New graduates (women)
Mid-career hires (women)

105

118
30
20
77

58

9 81

0

2021

2022

80

Skilled

11.1
6.5

26
2023

11.9
8.9

%

13

TOYOTA BOSHOKU Human Capital Report 2023

12

0

2023

(FY)

<Reference>

Turnover rate of new graduate recruits in manufacturing positions leaving
within 3 years• University graduate recruits: 19.0%• High school graduate recruits: 27.2%(FY)

Priority policy

recruits leaving within 3 years• Mid-career recruitment(1) Referral recruitment
Hire through referrals from acquaintances of company
members, in order to both assess whether a person has theability to become an immediate asset and whether they sharethe company’s aspirations, as well as to hire speedily.
(2) Alumni recruitment
Hire OBs/OGs of the company.

Policy objective• In order to effectively communicate Toyota Boshoku’s appeal and aspirations to potential recruits
from various backgrounds, focus on interaction with candidates and PR to enhance recognitionof the company and our brand• Interaction with potential new graduate recruits and PR• Digital PR activities(1) Offer internships
Deepen understanding of the company and its culture by, forexample, working on topics such as “Research anddevelopment of urethane material that contributes to carbon
neutrality” and “Design and development of seats to be installedin globally deployed vehicle models” for around three weeks,
while receiving support and feedback from senior company
members, interacting with numerous senior members andgaining experience of giving presentations on the results during
this time.
(2) Dialogue and PR activities by OB/OG recruiters(3) Conduct small-group round-table discussions within
schools
Interact not only with students seeking employment, but alsowith younger students to convey the company’s appeal.
(4) Collaborate with university research labs
By clarifying the human resources needed, collaborating with
universities from an early stage, and linking this to training andrecruitment, eliminate mismatches and acquire humanresources capable of advanced R&D, who also possess thedeep expertise required in new customer and new value areas.

Internship for engineers

activities

Turnover rate of new graduate recruits leaving within 3 years(March 2018 graduates)• University graduate recruits: 31.2%• High school graduate recruits: 36.9%

%

2023

2021

(FY)

0
2022

graduate/mid-career recruits• Number of foreign national recruits• Average years of service• Turnover rate of new graduate

Details

63

51

48
3 21

1.8
2022

9

54

7
19

3.8

2021

57

13

Administrative and engineering employees / Skilledemployees: New graduate recruits leaving within 3 years (%)
Administrative and engineering

New graduates (women)
Mid-career hires (women)

67

25

78

88

New graduates (men)Mid-career hires (men)(1) Expand the target demographic
Conduct recruitment activities including previous graduates who
have no employment history and non-Japanese university
graduates, etc. Strengthen partnerships with high schools
involved in new development and technical fields to attract
young people who can work in the core and new value areas.
(2) Improve retention of new company members
Provide support in line with the individual wishes and growth of
new company members through measures such as
post-assignment questionnaires and individual interviews, andinterviews with supervisors/senior personnel using adevelopment record chart.
In addition, conduct communication skills training for directsupervisors/senior personnel to promote smoothcommunication with new company members.

Communicate our appeal
externally (enhancerecognition of the company)

Skilled employees: Number of recruits by
new graduates/mid-career hires, and gender• Number of new

Details• New graduate recruitment
In an increasingly competitive market, the key to our success as an Interior Space Creator will be to secure thebest talent. We will realize our business strategy by clearly setting out the skills and experience needed for thethree areas of activity, and by proactively bringing in talented people who match these requirements.
In terms of the target demographic for recruitment, we will broaden our sights beyond Japan to the global
market, where population growth is anticipated, to secure personnel from diverse backgrounds who are a good
match for the culture and needs of each region.
In addition, many company members are involved in hiring activities. By having them talk more widely
about the appeal and future of Toyota Boshoku in their own words, we are working to attract human resources
who share their aspirations, while eliminating any mismatch between the company and prospective employees.
Once they have joined the company, we carefully follow up with new recruits to ensure smooth communicationin the workplace, through individual meetings between the new recruit and HR staff, as well as through training
for supervisors and senior personnel.

Main KPIs

Source: Ministry of Health, Labour and Welfare, published data on turnoverrate for new graduate recruits (March 2018)(1) Utilize social media to disseminate the company’s culture
and internal atmosphere(2) Publish a video showing the company’s activities and thevoices of company members(3) Hold company exhibitions and exchange meetings withstudents in a virtual space

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HR strategy—policies and KPIs

HR strategy

3

Priority policies and specific initiatives

Support for growth

Priority policy

From the perspective of seeking innovations for the future,
aim to develop human resources who bring flexibility and creativity,and contribute to the growth of the organization as a whole throughtheir deep knowledge as experts and understanding of a wide range
of industries and business perspectives
In order to develop people capable of contributing to society, who have diverse values, a challenging spirit andunderstand the value of strong teamwork, we have formulated the TB Way competencies (the type of people
we are looking for and job performance standards), based on our management philosophy, as our basic
approach to developing and appointing human resources. We train and appoint people globally who candemonstrate well-balanced abilities in the four areas of “strategic planning,” “carries out the plan,” “strengthens
talents and organization power,” and “humanity.”
To nurture human resources who can play an active role in each of the three areas of activity, we aredeveloping executive and management-level personnel, providing training and career opportunities beyond an
individual’s own area of expertise, and are developing digital human resources. In particular, we will bolster skills
and technical capabilities in the core area, and global responsiveness in the customer expansion area. In the
new value area, we are focusing on developing the necessary experts in each field for making pioneering
proposals, as well as executive and management-level personnel to construct new business models.
While building on the foundation of each individual’s expertise, we are nurturing human resources who
have their sights set on a wide range of fields and who possess new insights for adapting to a changing
business environment.

Policy objective

Developing executives andfuture managers

Providing education andcareers beyond an individual’s
own area of expertise• In addition to deepening existing businesses, develop

next-generation management candidates who can leadmarket expansion and build new business models,
which are essential for enhancing the company’s value

Total cost related(Billionsto developmentof yen)training
Average training
hours per company (Hours)
member

1.11

1.18

1.35

19.1

17.6

18.8

perspectives through varied work experiences and knowledge of other companies and industries

effectively utilize data, so that company members are able to promote digital transformation (DX)with a sense of urgency to realize business reforms for securing future competitiveness

Details• Developing executives and future managers

Promote the optimal global allocation of human resources with afocus on development, regardless of their background, based on
discussions at the Global Succession Committee by Top Executives(GSCT) for executive management successor candidates, theGlobal Succession Committee (GSC) for candidates for presidentsof business entities and top functional positions outside Japan, andthe Regional Succession Committee (RSC) for other key posts.
Outline of the GHR Platform (global common HR system)
RSC

GSC

GSCT

Segment /regional manager orhigher level

Global presidentsof business entities,
top functional posts,
general managers
or higher level

Candidates forofficers

Forums for global discussions on human resources
development and optimal assignment

FY2023
Number of persons commended as
Outstanding Technicians(Aichi Master Craftsmen) in Aichi Prefecture
Number of winners of Ministry of Education,
Culture, Sports, Science and Technology
Award: Prize for Creativity and Ingenuity

3

Strengthening anddeveloping skills

8

Energizing innovation

Number of winners in
the National Skills Competition

4

Expert level
Number of persons
who passed
the skills test

Level 1

28

Level 230

Number of participants in global executive
training programs
Global executive training program

15

TOYOTA BOSHOKU Human Capital Report 2023

4138

executive training programs• Aim to develop human resources equipped with the knowledge to safely utilize digital tools andDigital human resource
development

Priority policy
FY2023• Number of participants in global• Provide learning opportunities for all aspiring talent, and develop company members with diverse

FY2024 data
FY2021 FY2022

Main KPIs• Global executive training programs

Develop candidates for future executive management.

• Supporting company members’ desire to learn andproviding opportunities to learn

We have introduced “Share Pro,” a Furusato kengyo cross-sector
training program in which participants work on business promotion
and management innovation projects of regional SMEs andorganizations for a limited period of time. This enables company
members to learn from industries and fields outside their own areaof expertise, and to think “outside the box” in the workplace. In
addition, to encourage company members to take on new
challenges, we are currently expanding the scope of our internal
recruitment system, which allows members to transfer to a divisionor post of their choice, to include younger company members.

• Digital human resource development(1) Promote use of the optimal digital tools to support businessprocess reform(2) Strengthen human resources capable of making effective use inbusiness of the growing volumes of data
(3) Acquire knowledge for the safe use of digital tools/data

Policy objective

Main KPIs• Establish a system to systematicallysecure the human resources neededin the areas of activity that are
essential for future business growth• Number of persons commended as Outstanding••

Technicians (Aichi Master Craftsmen) in Aichi
Prefecture
Number of winners in the National Skills Competition
Number of persons who passed the skills test

• Foster a culture of innovation and plant the seeds for business growth

Details• Developing the human resources required in the core area
Support the improvement of workplace capabilities throughknowledge training and practical training with the aim of developing
human resources capable of achieving high levels of safety, quality,
delivery, and cost on a global basis. An internal Skills Competition isheld to verify the degree of development of technicians. At the
Toyota Boshoku Technical Skills Academy, efforts are underway to
win prizes at the National Skills Competition, with the aim ofdeveloping human resources who can serve as the future leaders oftechnical workplaces.

• Developing the human resources required in the newcustomer expansion area and new areas(1) Re:act, We:ave
Continuously implement two programs (Re:act and We:ave) withthe aim of expanding our business fields and developing leaders in
the creation of new businesses. Raise the company’s overall levelto foster a culture of innovation, and develop company members
who will actually serve as the leaders of new businesses.
(2) Creating an environment conducive to fostering innovationand new businesses
Promote measures such as establishing a system to dispatch
company members to venture companies, peer companies, anduniversities with the aim of acquiring new values and ways of thinking,and establishing a division specializing in planning new businesses.

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HR strategy—policies and KPIs

HR strategy

4

Priority policies and specific initiatives

Diversity and inclusion

Priority policy

Policy objective•
Employee Network
Resource Group (ENRG)

Aim to create an organization in which people with diverse
backgrounds and values can create new value by respecting andoptimizing each other’s differences• Support company members facing various
Work-life balance

We believe that energizing innovation through the fusion of diverse knowledge and ideas is essential forbusiness expansion and the creation of new businesses. To this end, we are working to create an organizationin which people with different backgrounds, attributes, and values, including gender, age, nationality, andphysical ability, play a natural role in the company, where individual differences can be turned into strengths, andwhere people can enhance each other’s abilities and thrive. As part of this process, the Toyota Boshoku group is
promoting the creation of an open workplace culture in which everyone can openly and freely express theirideas, as well as activities to broaden the range of work style options according to each individual’scharacteristics. Through these activities, we aim to develop a basic environment in which company members
can be themselves and cooperate with each other, while at the same time building an organization that cancreate new value from multiple perspectives.

• ENRG (Employee Network Resource Group)• Enhancing measures to support work-life balance• New establishment of Life Support Leave: A leave system that can betaken for a wide range of reasons, such as family care and infertility
treatment, is scheduled to begin in April 2024.

Ratio of women in
management positions

Permanent company members

77

82
67
53

65

58

2021

2.0

4.0
2.7
2.4

Number and ratio of
men taking childcare leave

5.0

90

%

36
18

9
2022

12
2023

(FY)

2021 2022 2023 2026 2031

(Target) (Target)

Promoting active roles fordiverse human resources

%

70

(FY)

6
2021

2022

leave

• Number of Skill Comeback system users

Provide opportunities to think about future career, including the involvementof supervisors and spouses, in anticipation of returning to work afterchildcare leave.

Policy objective

Main KPIs

company members are given
opportunities for personal growth, feel
fulfilled and motivated in their work, andcan realize their full potential, regardlessof life events, age, cultural differences,
language, or physical ability• Ratio of management positions• Wage differential between men and women• Number of company members making use ofre-employment system• Percentage of senior citizens continuing
employment• Number of persons with disabilities employed• Ratio of persons with disabilities employedpeopleDetails• Career support for women28• Active recruitment of non-Japanese company members andacceptance via intra-corporate transfer (ICT)

Develop an environment that allows a work-life balance, raising awarenesson the part of the individual and their supervisor, and%15

using short-time working system• Number and ratio of men taking childcare• Holding career seminars before and after childcare leave• Aim to create an organization in which

Number of non-Japanese company
members• Number and ratio of company members• Program of financial assistance for childcare leave: The company provides
financial assistance to relieve both men and women of financial concerns
during childcare leave.
• Enhancement of short-time working system: Expand the eligibility andworking hour options.
Establish a flexible work environment including elimination of core time,
flexible working hours, and teleworking.

Established in fiscal 2023, this Group is working to ascertain the real viewsof company members and discuss measures to promote their success. To
date, ENRGs for women, young people, non-Japanese company members,seniors, and people with disabilities have been established and are
expanding their activities.

FY2024 data

29

life events, such as childcare and nursing
care, to balance their careers by giving
them a variety of options

Details

Priority policy

ICT

Main KPIs

Promote diversity and inclusion by bringing
together company members with diverse
backgrounds, attributes, and values to jointly
consider and implement policies andprograms that enable each member to fully
demonstrate his or her abilities

To enhance our ability to respond to globalization, invite to Japan more
overseas members—as future executive candidates—in addition to actively
hiring non-Japanese company members. Proactive efforts are underway tostrengthen the language skills of personnel within Japan.

registering and training priority trainees at each workplace.

2023

2026

(FY)

(Target)• Drawing on the expertise of seniors
In order to draw on the personal aspirations, experience, skills, and expertiseof members, implement a job posting system (an internal recruitment systemfor employees aged 50 years and over), flexible operation of the retirement
age for different positions, and overseas secondment of re-employed
members. In the post-retirement (age 60 and over) reemployment system, areview of duties and compensation is underway to improve job satisfaction.

• Employment of persons with disabilities
To provide the support needed for each individual, a consultation service
has been set up, and a system has been established that allows a personwith disabilities and/or their supervisor to consult with the service staff.

• Offering internships
Offer internships for non-Japanese company members and members withdisabilities. Eliminate anxiety by fine-tuning job descriptions and the support
required prior to joining the company.

Priority policy

ENRG Women’s Team kickoff

Creating work schedule that make it easy for women to work even duringchildcare

Policy objective

Responding to sexual diversity(LGBTQ+ community)• Establish a reassuring work environment for LGBTQ+ members, and be an organization that

Creating people-friendly
processes and environments• Create a workplace in which people with a variety of attributes and characteristics, including seniors,

respects all forms of sexuality

people with disabilities, and people who are unable to work full time, can work comfortably

Details• Apply internal marriage and family-related systems to same-sex
couples• Promote education for managers and supervisors• Design processes and create an environment that is easy foranyone to work in

17

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HR strategy

5

Priority policies and specific initiatives

Pursuit of ease of working

Priority policy

Through the development of flexible, efficient, and creative work rules
and an open workplace, encourage new challenges and create
an environment in which company members can work happily
with enjoyment
As part of Toyota Boshoku’s vibrant work style innovation, we are promoting the development of more flexible,
efficient, and creative work rules. At the same time, we are focusing on fostering an open workplace culture
where everyone can openly and freely express their ideas, in which company members can work happily andenergetically with a sense of enjoyment. Furthermore, in order to quantitatively evaluate the extent to which
company members feel vibrant and fulfilled, we have introduced the KPI on vibrant work environment as acompany-wide metric, and we are working to improve the system and environment in order to further enhance this.
We will work at an even higher level to realize both our business strategy and the vitality of our company members.

Policy objective

Fostering an open
workplace culture• Energize communication between top management, supervisors and subordinates, and build

Enhancing mechanisms forgathering feedback fromcompany members• Gather honest feedback from a diverse range of company members in terms of qualification,

relationships where people are able to “ask and tell”

job type, site, and gender, to create better HR strategies and policies

Details• Creating an open workplace(1) Internal training
Hold lectures by experts on creating an open workplace, andtraining to acquire a sense of gratitude and consideratecommunication.
(2) Communication of the Top message(3) Recognition of the views of company members“People skills” has been added to the job evaluation criteria
based on a system in which persons in various positions,
including supervisors, coworkers, and subordinates, giveevaluations from multiple perspectives (360-degree evaluation).

(4) Building relationships where members are able to “ask and tell”
Provide financial assistance for events, etc. to promotecollaboration and communication between divisions, and toincrease motivation. Also hold in-house events such as
regattas, summer festivals, and an Ekiden Championship.
(5) Creating a workplace where greetings and expressions ofgratitude come naturally
Labor and management are working together on Greeting
activity, Thanks activity, and Calling names using “san” activity
to build mutually respectful relationships.

• Enhancing mechanisms for gathering feedback from awide variety of company members

Establish a “Committee of 100” to hear the views of members covering
a wide range of human resources, representing different positions.

FY2024 data
Engagement score(company member satisfaction) (%)
71.5

85.0

71.1

95.6

103.6

Priority policy

Teleworking utilization rate2

Paid holiday utilization rate1

96.3

34.4

%

36.1

%

%

70.4

Promoting vibrant work styleinnovation

Policy objective• Create a workplace where company members can work
happily with enjoyment, in which they make
improvements independently

19.9• Promoting flexible work styles
Develop teleworking systems (including full remote working
depending on family circumstances), flextime without core hours,
and office reforms to create a flexible work environment.

2022

2023

2026

(Target)(FY)• Teleworking utilization rate

Details%

2021

Main KPIs

2021

2022

2023

(FY)

2021

2022

2023

(FY)

• Improving operational efficiency
To enable each company member to perform even higher
value-added work, promote the reduction of working hours
through a system (with incentives) in which each member makes atleast one proposal per month for improving company-wide
operational efficiency, and by promoting the delegation of authority,
reviewing meeting bodies, and establishing no-meeting days.

1 The paid holiday utilization rate may exceed 100%, as it is calculated by dividing the number of days of paid holiday taken (including paid holiday carried over from theprevious fiscal year) by the number of days of paid holiday granted (excluding paid holiday carried over).
2 Total utilization frequency ÷ number of days worked (excluding manufacturing workplaces)

Ekiden Championship

Summer Festival

Open community space

19

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HR strategy—policies and KPIs

1 WHO-HPQ (Health and Work Performance Questionnaire) measures absolute presenteeism. “Presenteeism” refers to a state ofaffairs where a loss of productivity occurs as a result of a company member’ s ability to work being impacted by health issues.
2 Employee-wide average number of days of work missed due to injuries or sickness

HR strategy

6

Priority policies and specific initiatives

Promotion of health & safety

Priority policy

Policy objective

Main KPIs• By recognizing enhancement of theBased on the belief that priority should be placed on health andsafety at work, promote health management and safety &health management to realize an environment in which company
members are both mentally and physically healthy, and can workwith peace of mind

Health management

health of our company members as amanagement task, realize a state inwhich every company member can
maximize his or her potential byworking in good health and withvitality, both mentally and physically• Work engagement• Presenteeism (rate of lost productivity)• Absenteeism (absence from work due to injuries orsickness)• Percentage of those who have an exercise habit (40years and older)• Rate of company members receiving thoroughmedical examinations after general health checkups

Details• Health management promotion system

Founded on our Basic Safety and Health Policy, we promote health management and safety & healthmanagement to establish a corporate culture in which the priority is placed on safety and health at work.
In health management, we regard enhancement of the health of our company members as a management task,
and based on the Toyota Boshoku Health Declaration, we are promoting the creation of a company in which every
company member can maximize his or her potential by working in good health and with vitality, both mentally andphysically. We have established a promotion system in cooperation with related divisions, with the CEO as the person
holding chief responsibility, and based on the strategic map we have created, we are making company-wide
efforts to improve company members’ work engagement, improve presenteeism, and reduce absenteeism.
In terms of health and safety, we are conducting activities globally in line with the Occupational Safety and
Health Management System (OSHMS) to ensure that a safe workplace environment is realized in all of ourworkplaces, regardless of region or type of work.

With the CEO as the person holding chief responsibility, the Health& Safety Promotion Division, the HR Strategy Division, theCorporate Planning Division, and the Health Insurance Association,
as the divisions responsible for promotion, hold periodic meetings.
Health Activities Promotion Leaders assigned to each division play acentral role in proactively promoting health activities.

of the Health Challenge Eight targets. Promote behavior change
by providing incentives, such as awarding points to company
members who achieve targets for events planned within thesmartphone app as a support tool.

• Cultivating good physical health
Hold various health seminars (health seminar for 28/35-year-olds,
women’s health seminar, sleep seminar), distribute health articles
including fitness videos, implement a smoking ban on all premises(since April 2023), provide smoking cessation medication assistance.

• Health management strategy map
Create strategy maps and promote activities based oncross-analysis of health checkup data and stress check results.

• Health literacy improvement• Cultivating good mental health
Provide self-care and line-care education to prevent mental healthissues. For company members with mental health issues, the HR
Strategy Division works with industrial physicians andoccupational health staff to provide support for returning to work.

Carry out the Health Challenge Eight comprising eight items thatdefine a healthy lifestyle to prevent lifestyle-related diseases(proper weight, breakfast, drinking, snacking, non-smoking,exercise, sleep, and stress), with the goal of achieving 5 out of 8

Certified as an excellent enterprise of health and productivity management
Following on from our certification in 2022, we were certified as an Excellent Enterprise of Health andProductivity Management 2023 (White 500), in recognition of our activities in fiscal 2023.

KPI data
Work engagement (deviation value)

37.9

50.0
48.1

48.1
47.0

2021

Presenteeism1(rate of lost productivity)

2023

2022

2026

37.3

2.8

%

35.0

%

2022

(FY)

(Target)Absenteeism2 (absence from work
due to injuries or sickness) (days)

2023

2026

(Target)

(FY)

2.7

2021

days

2023

(FY)

Group companies in Japan

Group companies outside Japan

1.20

1.21

1.20

1.31

FY2021
1.25%

1.02

0.75%
0.43
0.32
0.19
2018

21

0.44
0.18
0.14
2019

0.40

0.24 0.09
0.00
2020

TOYOTA BOSHOKU Human Capital Report 2023

0.30
0.13
0.10

2021

0.38%
0.00%

0.26
0.01
2022
2023

(FY)

Number of serious
accidents involving
company members
Number of serious
accidents involving
outside contractors
and visitors

00

FY2022 FY2023

0
0

0
0

• Frequency rate (lost time or above)• Number of serious accidents involving company
members• Number of serious accidents involving outsidecontractors and visitors• Mortality rate from industrial accidents

Details
System (OSHMS) activities

Average of Japan’s manufacturing industry (for reference)

Main KPIs

environment is realized in all of ourworkplaces, regardless of region ortype of work

• Promoting Occupational Safety and Health Management

Frequency rate of lost time accidents
Toyota Boshoku

Policy objective• Ensure that a safe workplace
Safety and health

2.7

2022

Priority policy

Having established a unified management system for the Toyota
Boshoku group, identify occupational health and safety
problems/issues and implement continuous improvement ofoccupational health and safety.

• Creating a safe workplace environment
Implement appropriate management measures founded on risk
assessment (equipment, chemical substances, and operations),
awareness of Safety Basic Behavior, safety inspections, andsafety training.

• Disaster prevention initiatives
Implement fire prevention inspections, performed by top management
themselves (the Chief Plant General Manager verifies the
management status), and conduct fire extinguisher training using VR.

• Ensuring safety in outsourced construction
Conduct activities together with the Toyota Boshoku Safety and
Health Association (including 47 companies) with the aim of
ensuring safe construction management. In addition, courses areheld by the Safety Education Academy for Construction (SEAC),
providing training for construction personnel who can experience
the construction environment using the same equipment as in theactual field.

• Developing human resources capable of acting safely
We established the Safety Health Environment fruitful Think and Act
Center (SHE-TAC) in 2020. The center is equipped with facilities
and mechanisms to enable each company member to “learn” thebackground and causes of past industrial accidents, “think” aboutcountermeasures, and “act (execute)” them on their own with asense of ownership. Training is provided by job level to prevent
accidents and promote safe human resources development.

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HR strategy

7 Adherence to compliance and ethics
Aim for continuous organizational operation and a reliable
environment by implementing initiatives as well as risk management
to ensure adherence to compliance and respect for human rights

Priority policies and specific initiatives

Priority policy
Create an ethical workplacewith an emphasis oncompliance

Respect for human rights

The Toyota Boshoku group states in its Corporate Philosophy that the company will promote corporate growth
while fulfilling our responsibilities in harmony with society as a good corporate citizen. At the same time, thecompany clarifies its overall promotion system, scope of activities and goals for compliance on a global basis,and conducts activities under strong leadership from top management, while personnel in charge of legal affairs
in each region share knowledge of issues as well as improve and strengthen compliance activities.
In addition to anti-bribery measures, and adherence to antitrust laws, the importance of respect for humanrights is steadily increasing. The Toyota Boshoku group works to raise members’ awareness of compliance andhuman rights and enhance the level of implementation through various training and educational activities forofficers and company members. In doing this, we strive to achieve compliance with laws and regulations as wellas co-existence with local communities through respect for various cultures, values and individuality.
In order to respond promptly to risks related to management and risks arising from the external
environment, we are actively working to strengthen risk management and reduce risks.

Total number of cases of serious non-compliance• Create an environment in which everyone can work with

• Number and participation rate

• Contribute to raising awareness of human rights in• Number of participants inpeace of mind by preventing harassment andinappropriate labor management

society as a whole through a wide range of initiatives,
including not only our own human rights initiatives, butalso raising awareness among company members andthe status of human rights at our suppliers• Strengthen harassment prevention activities
Starting in 2022, implement ongoing education for all managers
and distribute handbooks. Promote understanding of correctknowledge of harassment, and a shift in awareness on the part ofsupervisors.
(1) Improve the quality of daily working hour management: Appointa labor management promoter at each workplace andstrengthen systems for proper working hour management ineach division in cooperation with HR.

0

0

2021

2022

2023

2022

Number and participation rate ofparticipants in harassment training

2023(3) Review entry/exit control methods and the attendance system.
Implement training for officers and managers as well ascompany-wide e-learning to raise awareness of human rights.

information management

Details• Risk management activities• Formulate a Business Continuity Plan (BCP) for early restoration
2021(2) Activities to eliminate inappropriate time management: If there
are discrepancies between objective records of start/end times
and self-reports, conduct investigations of all cases. Implement
periodic company-wide training.

• Enable ongoing business operations by addressing risk, information security, and confidential

the Chief Officer. Establish priority risks to be followed up foreach fiscal year, and monitor their status. Promote theestablishment of a foundation for rapid response, safety ofhuman life, and minimization of losses in the event of a crisis.

(FY)

training by level and in humanrights seminars related toraising human rights awareness

Policy objective• Develop a global risk management system for the group, led by0of participants in harassment
training• Conduct training on raising human rights awareness• Ensure proper time management

Risk and information
management

Number of consultations with Anything Goes
Counselling Window
217
203
172

Main KPIs

Details

Priority policy

FY2024 data

Policy objective(FY)of business in case of a crisis. Promote improvements using a
PDCA cycle, through assessment of activities and training, etc.,with the aim of enhancing effectiveness. Positioning these
activities as business continuity management (BCM), promote
the creation of organizations, workplaces, and individuals thatare consistently resilient to crises.

• Confidentiality management and information security• We have established the Information Security Policy, a policy
common to the Toyota Boshoku group, and promote thestrengthening of information security.

• Promote reduction of the risk of confidential information leaks

through inspections/improvement of initiatives including the useof security guidelines.

• Regularly conduct activities to raise company members’ security
awareness such as through e-learning training and drills intargeted e-mail.

FY2023Results

950

Attendance rate

98

people%Harassment training for all managers

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HR strategy—policies and KPIs

List of KPIs

1 Human capital ROI = operating profit / human capital cost. Human capital cost is calculated using labor costs.
2 Refers to company members from outside Japan accepted to work in Japan.
3 Number of company members using the reemployment system who left due to pregnancy, childbirth, childcare,nursing care, work transfer (spouse), etc.
4 Company members’ attachment/commitment to the company. 50 is the average, with a higher number
indicating a better result.

Target value

Target value

FY2021

FY2022

FY2023

FY2026

FY2031

Toyota Boshoku Group44,15444,264

44,581––

Total cost related to development training

PeopleToyota Boshoku Group

13,814

13,537

13,420––Americas

PeopleToyota Boshoku Group

12,025

12,14812,381–China

PeopleToyota Boshoku Group

7,810

7,761

Asia, Oceania

PeopleToyota Boshoku Group

6,186

Europe, Africa

PeopleToyota Boshoku Group

4,324

PeopleToyota Boshoku

PeopleTarget value

Target value

FY2021

FY2022

FY2023

FY2026

FY2031

Toyota Boshoku

1.11

1.18

1.35

–

–

Hours

Toyota Boshoku

19.1

17.6

18.8

–

–

Number of participants in global executive training programs

PeopleToyota Boshoku Group

80

108

138

–

–

–

Medal with Yellow Ribbon: Number of recipients

PeopleToyota Boshoku

1

1

0

–

–

–

–

PeopleToyota Boshoku

1

0

0

–

–

4,863

–

–

PeopleToyota Boshoku

3

3

3

–

–

8,264

8,244

–

–

Number of persons commended as Outstanding Technicians(Contemporary Master Craftsmen)
Number of persons commended as Outstanding Technicians(Aichi Master Craftsmen) in Aichi Prefecture
Ministry of Education, Culture, Sports, Science andTechnology Award: Prize for Creativity and Ingenuity

PeopleToyota Boshoku

7

8

8

–

–

7,251

7,190

7,161

–

–

Number of winners in the National Skills Competition

PeopleToyota Boshoku

3

2

4

–

–

Toyota Boshoku

34

38

45

–

–

Expert level

PeopleToyota Boshoku

0

8

4

–

–

PeopleToyota Boshoku

1,050

1,074

1,083

–

–

Level 1

PeopleToyota Boshoku

4

28

28

–

–

PeopleToyota Boshoku

19

20

20

–

–

Number of
persons who
passed theskills test

Level 2PeopleToyota Boshoku

7

31

30

–

–

Women as percentage%

Toyota Boshoku

12.6

13.0

13.1

–

–

PeopleToyota Boshoku Group

–

–

1,387

–

–

Non-Japanese company members as percentage%

Toyota Boshoku

0.6

0.6

0.7

–

–

Men

PeopleToyota Boshoku Group

–

–

1,337

–

–

20–29 years old

PeopleToyota Boshoku

1,278

1,223

1,187

–

–

Women

PeopleToyota Boshoku Group

–

–

50

–

–

30–39 years old

PeopleToyota Boshoku

2,553

2,442

2,328

–

–

Women as percentage%

Toyota Boshoku Group

–

–

3.6

–

–

40–49 years old

PeopleToyota Boshoku

2,711

2,666

2,623

–

–

PeopleToyota Boshoku

1,213

1,226

1,236

–

–

50–59 years old

PeopleToyota Boshoku

1,749

1,927

2,099

–

–

PeopleToyota Boshoku

1,189

1,197

1,203

–

–

60–69 years old

PeopleToyota Boshoku

10

6

7

–

–

PeopleToyota Boshoku

4

4

5

–

–

%

Toyota Boshoku Group

25.95

24.90

17.32

–

–

PeopleToyota Boshoku

24

29

33

49

65

PeopleToyota Boshoku

0

0

1

–

–

%

Toyota Boshoku

2.0

2.4

2.7

4.0

5.0
–

KPI

Unit

Scope

Number of permanent company members

PeopleJapan

Number of permanent company members
Men
Of which non-Japanese company members

Women
Of which non-Japanese company members

1

Clarificationof requiredhuman
resources

By ageHuman capital ROI1

Total personnel expenses

Billions of yen

Average training hours per company member

–

–

6,156

4,583

8,301

Toyota Boshoku

People13,991

Toyota Boshoku

5.53

5.26

5.49

–

–

Toyota Boshoku Group

220,047

242,108275,279––

Millions of yen

Toyota Boshoku

82,962

84,92287,518––Full-time equivalent (FTE)FTE

Toyota Boshoku

8,250

8,208

8,181

–

–

Number of outside workers (contracted/ temporary workers)

PeopleToyota Boshoku

2,029

2,583

2,680

–

–

PeopleToyota Boshoku Group

25.6

25.3

21.7

–

80.0

KPI

for
3 Support
growthNumber of management positions

Number of management positions
Men
Of which non-Japanese company members

Women
Of which non-Japanese company members

percentage%

Toyota Boshoku

0.5

0.4

0.5

–

Men

PeopleToyota Boshoku Group

13

12

12

–

–

Women

PeopleToyota Boshoku Group

0

1

1

–

4

%

Toyota Boshoku Group

0.0

7.0

7.0

–

30.0

%

Toyota Boshoku

–

–

72.7

–

–

Non-Japanese company members as percentage

4

Penetrationof Diversity& Inclusion

Number of
officers

Women as percentage

Wage differential between men and women

Number of coordinators (Japanese non-line managers)

PeopleToyota Boshoku Group

202

191

176

–

–

Permanent company members%

Toyota Boshoku

–

–

73.0

–

–

Number of persons on intra-corporate transfer (ICT)2

PeopleToyota Boshoku Group

29

9

12

60

–

Temporary workers%

Toyota Boshoku

–

–

81.5

–

–

Number of trainees

PeopleToyota Boshoku Group

48

53

55

75

–

PeopleToyota Boshoku

195

211

242

–

–

Recruitment of company members for administrative andtechnical position

PeopleToyota Boshoku

125

87

131

–

–

PeopleToyota Boshoku

3

2

5

–

–

PeopleToyota Boshoku

118

78

105

–

–

PeopleToyota Boshoku

68

80

119

–

–

Men

PeopleToyota Boshoku

88

58

80

–

–

PeopleToyota Boshoku

18

36

70

–

–

Women

PeopleToyota Boshoku

30

20

25

–

–

Ratio of men taking childcare leave%

Toyota Boshoku

6

15

28

90

–

Of which non-Japanese company members

PeopleToyota Boshoku

7

5

10

–

–

Number of Skill Comeback system users3

PeopleToyota Boshoku

7

3

4

–

–

Number of company members recruited mid-career

PeopleToyota Boshoku

7

9

26

–

–

Number of company members making use of re-employment system

PeopleToyota Boshoku

343

354

392

–

–

%

Toyota Boshoku

4.6

7.0

13.4

–

–

Percentage of senior citizens continuing employment%

Toyota Boshoku

76

81

89

–

–

Men

PeopleToyota Boshoku

0

1

19

–

–

Number of people

PeopleToyota Boshoku

159

167

165

–

–

Women

PeopleToyota Boshoku

7

8

7

–

–

Employment of
persons withdisabilities

Employment rate%

Toyota Boshoku

2.33

2.50

2.53

–

2.80

Non-Japanese company members

PeopleToyota Boshoku

0

0

2

–

–

Engagement score (company member satisfaction)%

Toyota Boshoku

71.5

71.1

70.4

85.0

–

20–29 years old

PeopleToyota Boshoku

0

1

7

–

–

Paid holiday utilization ratio (union members)%

Toyota Boshoku

95.6

103.6

96.3

–

–

30–39 years old

PeopleToyota Boshoku

3

4

10

–

–

Average pay

Yen

Toyota Boshoku

6,716,515

6,835,847

7,005,275––

40 years and older

PeopleToyota Boshoku

4

4

9

–

–

Teleworking utilization rate%

Toyota Boshoku

19.9

34.4

36.1

–

–

PeopleToyota Boshoku

108

91

98

–

–

Work engagement4 (deviation value)–

Toyota Boshoku

47.0

48.1

48.1

50.0

–

PeopleToyota Boshoku

67

57

63

–

–

Presenteeism5 (rate of lost productivity)%

Toyota Boshoku

–

37.9

37.3

35.0

–

Men

PeopleToyota Boshoku

54

48

51

–

–

Absenteeism6 (absence from work due to injuries or sickness)

Day

Toyota Boshoku

2.7

2.7

2.8

–

–

Women

PeopleToyota Boshoku

13

9

12

–

–

Percentage of those who have an exercise habit (40 years and older)%

Toyota Boshoku

18.9

19.2

20.4

22.0

–

PeopleToyota Boshoku

0

0

0

–

–

Rate of company members receiving thorough medical
examinations after general health checkups%

Toyota Boshoku

84.4

87.0

91.3

94.0

–

Men

PeopleToyota Boshoku

2

0

0

–

–

Frequency rate (lost time or above)%

Toyota Boshoku

0.10

0.01

0.00

–

–

Women

PeopleToyota Boshoku

1

0

0

–

–

Number of serious accidents involving company members

Cases

Toyota Boshoku

0

0

0

0

0

Cases

Toyota Boshoku

0

0

0

0

0

%

Toyota Boshoku

0

0

0

–

–

Number of company members recruited as new graduates

Company members recruited mid-career as percentage of
total number of company members recruited per year

Recruitment of company members for skilled positions
Number of company members recruited as new graduates

Number of company members recruited mid-career

Number of company members using short-time working system
Of which men
Number of company members taking childcare leave
Of which men

5

6

Pursuit ofease ofworking

Promotion ofhealth &safetyYears

Toyota Boshoku

41

34

35

–

–

Number of serious accidents involving outside contractors
and visitors

PeopleToyota Boshoku

0

1

3

–

–

Mortality rate from industrial accidents

Years

Toyota Boshoku

17.0

17.5

17.8

–

–

Total number of cases of serious non-compliance

Cases

Toyota Boshoku

0

0

0

–

–

Men

Years

Toyota Boshoku

17.4

18.0

18.3

–

–

Number of consultations with Anything Goes Counselling Window

Cases

Toyota Boshoku
Group (Japan)

172

203

217

–

–

Women

Years

Toyota Boshoku

14.0

14.2

14.6

–

–

%

Toyota Boshoku

3.2

8.3

9.9

–

–

Administrative and technical positions%

Toyota Boshoku

3.8

6.5

8.9

–

–

Skilled positions%

Toyota Boshoku

1.8

11.1

11.9

–

–

Assignments from temporary worker to permanent company members
Non-Japanese company members

Average years of service

New graduate recruits leaving within 3 years

25

Scope

%

positions such as presidents of sites outside Japan

2

Unit

Millions of yen

Percentage of local company members in

Securing oftalentedhuman
resources

5 WHO-HPQ (Health and Work Performance Questionnaire) measures absolute presenteeism. “Presenteeism”
refers to a state of affairs where a loss of productivity occurs as a result of a company member’s ability to work
being impacted by health issues.
6 Employee-wide average number of days of work missed due to injuries or sickness

TOYOTA BOSHOKU Human Capital Report 2023

7 Complianceand ethics

Number and participation rate of

Number of people

PeopleToyota Boshoku

–

–

950

–

–

participants in harassment training

Attendance rate%

Toyota Boshoku

–

–

97

–

–

TOYOTA BOSHOKU Human Capital Report 2023

26