www.nkc-j.co.jp

Through this Communication on
Progress, we will report the status of our
implementation of the principles of theUnited Nations Global Compact and its
support of the various United Nations goals.

Communication on
Progress

We welcome your thoughts and opinions.

Kurumin is a certification
mark for companies thatprovide support to families
raising children.
Kurumin Mark (one star)Obtained in April 2016

Fun to Share
We endorse climate control initiatives
promoted by the Ministry of theEnvironment.

Let's
Get
Rolling
NKC Repor t 2019

Contents
Message from Top Management

03

Mission & Vision

05

History of NKC

06

Spotlight 01

Spotlight 02

Let's
Get
Rolling
01

NKC Report 2019

Spotlight 03

Bearing Retainer Division

07

Diversity

09

Conveyor Division11

Inclusion

13

Sash Hardware Division

15

Next NKC

17

Report: With Local Communities

19

Report: With Our Employees

21

Report: With the Global Environment

23

Report: With Our Customers and Stakeholders

25

Overview of NKC

27

Editor’s Note

29

NKC Report 201902

Message from Top Management

Message from Top Management

To Contribute to a Sustainable Society
Together with Our Customers
The structure of industry, in all its sectors, is changing on
a tremendous scale and at a bewildering pace.
The manufacturing industry has always needed to keepchanging. In the face of constantly changing social
conditions and customer needs, and to make active
contributions to a sustainable society, it is essential that
we are able to respond even more flexibly and swiftly tothose needs and have a solid outlook on the future. As
well as engaging positively in our existing businesses andinnovative new businesses as a responsible manufacturer,
we must continue to contribute to society proactively as
a company with social responsibility, and meet the needsof our customers and other stakeholders.
Therefore, our Group Vision describes our corporate
philosophy, “all employees constantly striving forinnovation with pride.” Under this vision, the NKC Grouphas devoted its efforts to business activities that aim tosolve social issues andcontribute to the creation of asustainable society. We will continue to stand firm in thisstance and stride forward together with our stakeholders.

them greater satisfaction in their life overall, which in turnwill allow them to perform to the best of their abilities
and contribute to the business. Such initiatives were
implemented with these intentions in mind, and they
have become more widely recognized by our employees
along with previous areas of focus, such as our
promotion of women’s active participation and diversitybased management. We also have great expectations
for the young people in our company. Our young people
are very adept at absorbing their work and knowledge,
and can adapt quickly. Brimming with curiosity, they do
not depend on experience or intuition. Japan has various
challenges, such as population decline and shrinking
markets, but the world is full of possibilities. We want
our young people to look toward the future with dreams.
Of course, we also want our staff of the generation thatpossesses a wealth of experience to continue to refine
themselves in a positive manner.

The NKC Group’s CSR Activities andPhilosophy

When we look at the markets of individual countries,
the economy continues to move drastically on a global
scale. In every sector and industry, we are all in the midstof fierce competition, and it is evident that everyone isworking hard to compete.
In the manufacturing industry as well, all companies
continue to tackle new challenges through R&D andinnovation. For example, with the automotive industry inthe middle of a “once-in-a-century” era of transformation,
there has never been a time more replete with the needfor challenge. At such a time, our company is steadily
expanding its business base, including production
reforms through innovation, opening up new markets
through globalization, and moving into new sectors suchas power generation, agriculture, and consumer products
and services for the home. By invigorating our businessin this way, to fulfill our responsibilities as a company
while creating a sustainable society in which anyone
can play an active part, the NKC Group will continue topursue its business activities, CSR initiatives, and social
contribution efforts, together with all of our employees,
customers, suppliers, and the community.

The NKC Group has actively expanded its CSR activities
as a means of fulfilling its own social responsibilities,
to solve the social issues that it has identified throughits business activities. Following the NKC Group Vision,
which is our corporate philosophy, our code of ethics inthe form of the NKC Group Code of Conduct, and the
NKC Standard, which sets out the principles for conduct
by our employees, we will continue to pursue ourbusiness and CSR activities.

Diversity and Our People
An important initiative in becoming a responsible
corporation by ensuring business management values
each individual employee as well as diversity-based
management. The NKC Group has been implementing
measures that emphasize work-life balance for about
the last ten years. These measures help to increase
motivation toward work and innovation, by providing ourpeople with a comfortable working environment to give03

NKC Report 2019

Tatsuo Nakanishi
President & CEO

Toward the Future and Beyond

NKC Report 201904

Mission & Vision

History of NKC

Mission &VisionIn recent years, the NKC Group has been actively
engaging in new businesses in addition to thebusinesses that it has pursued since the beginningof its long history, including bearing retainers,
conveyor systems, and housing components.
We will continue to transform ourselves so we
can meet our customers’ requirements while
responding to the remarkable changes in society.

History

Since it was first established in 1924, NKC hascontinued to respond to the remarkable changes insociety as it expanded its business. We have firmly
established a corporate culture that always puts
the customer first in all aspects of our business,
including planning, development, design, andmanufacture. The entire Group works together toengage in our business activities so that we may
continue to enjoy the support of our customers
throughout the world. We also actively pursue
consideration of the environment and contributions
to local communities through our businessactivities, and aim to be a company that willcontinue to grow as it contributes to a sustainable
society.

NKC Group
Corporate Code of
Conduct
Rules of ethics for the company toobey, observe and practiceContribution to a
Sustainable Society

1924
NKC Group
VisionUnited Nations
Global Compact

Basic principles
Aspired vision

Expression of support
and commitment toprinciples and penetration
within company
Participation in activities
in Japan and abroad

NKC Group’s
ActionPhilosophy

NKC
Group’sBusiness
Strategy

NKC Group’s
Business
Activities

Established as Nakanishi
Manufacturing Co., Ltd.,and began production ofretainers

1945

1952
NKC Standard
General rules of
employee conduct tofulfill the Corporate Codeof Conduct

1973

Name changed to Nakanishi
Metal Works Co., Ltd.

Established Shiga Plant

1980

NKC Standard● NKC strives to be a company that is constantly evolving and● We will contribute to the whole of society through manufacturing

NKC Group Corporate Code of Conduct● We will comply with the laws and regulations of each country andwhose employees always have pride in working.

● Principal mission: The provision of outstanding and safe products

and services● Compliance with social norms: Thorough compliance with laws

and regulations, fair competition, and appropriate dealings● Disclosure and handling of information: Highly transparent

disclosure of information and appropriate information management● Respect for human rights: Respect for human rights and preventionof human rights violations● Work environments: Provision of safe, healthy, and comfortable
work environments● Environmental protection: Active environmental protection activities
and prevention of environmental problems● Social contribution: Proactive initiatives for solutions to social issues● Opposition to antisocial forces: Resolute blocking of any connections
with antisocial forces or organizations● Adherence to corporate ethics: Establishment of effective in-housesystems and thorough adherence to corporate ethics● Problem-solving: Investigation of causes of problems, prevention ofrecurrence, disclosure of information, and pursuit of accountability(including services).

pursue business activities in good faith.
● We will be conscious of the importance of all types of informationand handle such information appropriately.
● We will respect the human rights of all people and will not associate to
not be involved in any acts that violate human rights.
● We will strive to maintain and further improve safe, comfortableworkplace environments.
● We will engage actively in the protection of the environment and themitigation of environmental burdens and help create a sustainable
society.
● We will contribute to the cultural and economic growth andprosperity of local communities as good corporate citizens.
● We will resolutely block any connections with antisocial forces.
● Top management will take the lead in striving to maintain and further
improve ethics.
● We will strive to work to prevent problems from occurring, but respondstrictly and resolutely in the event that they do occur.

2005

Established conveyor plants
first venture into UnitedStates

1984

1960

2005

1988

1961

Established conveyor plantin China

Established Nabari Plant incompany’s 60th anniversary
year

Established Mie Plant

NKC Group Vision

Established sash hardware
plant in China

Started manufacture ofconveyors

Stakeholders
Provision oftechnology/services
Building relationships of trust
Cooperation/collaboration

2003

Established Osaka Plant

Established bearing retainer
plant in China

2011

Established bearing retainer
plant in United States

Established bearing retainer
plant in Sweden, NKC’s first
venture into Europe

1997

1965

Started manufacture of sash
rollers

Established bearing retainer
plant in the Philippines,
NKC’s first venture into the
ASEAN region

Considering Global-Scale Issues
As a company that pursues business on a global scale, the NKC Group wishes to contribute actively not only in Japan, but also in the international
community. As one of the initiative to achieve this, in April 2015, we joined the United Nations Global Compact (UNGC), a UN initiative that encourages
companies to conduct themselves as members of society. With this as momentum, we will fulfill our responsibilities as a company by putting into practice
the action principles sought by the UN, such as consideration of human rights and the environment.

05

NKC Report 2019

NKC Report 201906

Spotlight 01
Bearing Retainer Division

Spotlight 01

Bearing Retainer
Division

NKC is supported by three business divisions - Bearing Retainer, Conveyors, and Sash Hardware.
In this feature, the executives who lead these individual divisions will talk about their respective
businesses, outlooks, and expectations.

Since the foundation of NKC, the Bearing
Retainer Division has manufactured anddeveloped many different bearing products
as society and science have developed,
and has now proven its presence as theglobal market leader in this field.

Industry-leading bearing technology

It manufactures several thousand typesof bearing retainers, its core product,
ranging in diameter from three millimeters
to three meters. These products play avital role in all industry areas, including
automobiles and railway cars. Also, by
adapting the technologies it has cultivatedto develop precision composite products,
such as automotive products and machine
tool products, it aims to make further
contributions to these industries and to thesociety.
Bearing Retainer
Division

The “Parts Business” and “Parts Power” that Underpin theFoundations of All Industry
Michiyuki Kamiji
Managing Executive Officer
General Manager of Technological Development
Department & General Manager of Technology
Management Department, Bearing Retainer Division

What kind of business is the
Bearing Retainer Division?
Kamiji: As well as bearing retainers(that hold the bearings used in therotating parts of machinery), theBearing Retainer Division develops,
manufactures, and sells mechanicalcomponents used in many sectors
including automobiles, precision
machinery, and aircraft. Our products
have earned high marks for quality
and reliability from our customers. In
particular, we enjoy trust in the world
market for our bearing retainers.
The Bearing Retainer Divisionboasts an excellent track record andreliability. What is the mission of
the division?
Kamiji: Our business is basically a“parts business.” Parts, which are thebuilding blocks of all products, support
society from its very foundations.
The mission of the Bearing Retainer
Division is to grow and develop this“parts business” to contribute tosociety. “Parts power” is what drives
that mission, maximizing the strengthof the parts business.
The main role of our business is

to manufacture products that are
indispensable to many domains,
bearings being a typical example. This
will give us the power to withstandmajor changes in society, including
economic trends. We also have thepower to make products of a top global
standard by bringing together thestrengths in production engineering,product development, and intellectual
property that we have cultivated over
the years. Our expansion into different
industries and our innovation throughthe use of this “parts power” will neverstop. They give us the ability to support
the foundations of all industries and tocontinue to contribute to society.

Stability, innovation, as
well as wisdom and speed,
are key
As the manufacturingindustry, including the automotive
industry, enters this era of change,
competition in the marketplaceis also intensifying. How will thecompany respond?
Kamiji: Firstly, I do not believe themarket for bearings and similar

products will ever disappear. These
products are a basic requirement for allindustries, so we want to expand ourbusiness in line with our customers’
expectations. On the other hand,
this era of change also represents anopportunity to create new demand.
As such, we are actively considering
moving into new domains, without
being held back by pre-existing
concepts.
Our primary concern when it comesto competition is to differentiate
ourselves from our competitors withcost and product. This is where
our “parts power”, as I mentioned
earlier, particularly our strengths inproduct development and productionengineering, will be a major advantage.
In recent times, our competitors,
particularly those overseas, are rapidly
closing in on us in terms of cost andquality, so unless we keep coming up
with new ideas, we will not survive
in the marketplace. For this reason,
we focus on production innovation as
well as active product development,
thoroughly pursuing cost reduction
and streamlining in our businesslocations in Japan and overseas.
The businesses you mentioned
are probably not commonly known.
What kind of impact do you thinkthey will have on society? Also,
what is NKC doing to safeguard its
technologies to realize your vision?
Kamiji: Certainly, our products
are mostly invisible to their end
users. However, each one of those
products plays a major role in termsof resources and energy issues. Evena single bearing has an impact onenergy efficiency. For example, toachieve torque reduction in automobile
hub seals, we recently succeededin reducing the seal torque*1 of our
hub seals by 30%. Development ofthese kinds of products can makesignificant contributions to and havea broad impact on society. Our “parts
power”, that is, our strengths inproduct development and intellectual
property, are what will safeguard
these important technologies in the

future. In the past, much of NKC’s
production was based on orders fromour customers, so it was quite rare for
us to file patent applications ourselves.
However, after devoting more effort
into developing products ourselves,
we have increased our patent numbers
considerably in recent times. My
theory is that, when it comes to
product development, as soon as youcome up with an idea for a productor technology, several people aroundthe world will have come up with thesame idea at the same time. Everyone,
including yourself, will be in the same
position, so it is important not tobe left behind, and to be the first to
develop your product and safeguard
the technology you have developed.

Expectations of self-sufficientpersonnel and putting
diversity into practiceLet’s move on to the personnelof the Bearing Retainer Division. Do
the people in your division have aparticularly distinctive character?
Could you also tell us what you aredoing to nurture your people?
Kamiji: NKC employees in general
are hard workers, and the people in
the Bearing Retainer Division are no
exception. The nature of our people
is helping to grow our businessperformance, giving everyone working
here peace of mind. One thing I
would say, however, is that I wish
there were more people at NKC who
have the toughness to overcome any
challenge and the strong ambition
to succeed. We do hold regular
workshops and seminars for humanresources development purposes.
Most importantly, we want ourpeople to gain a broad range of skills
and experience, including practicalexperience on the factory floor andon the front line of our business.

Experience in a range of jobs is criticalto gaining leadership skills. To this end,
we hold meetings three to four times
a year, where we plan the personnel
rotations for our engineers.
We want our engineers to make themost of any opportunities to lead
major projects. These rotations will
equip them with the knowledge,
experience, and results that will allow
them to handle any difficult problems
and challenges that our customers
may present.
Tell us about NKC’s current
commitments and approach toward
diversity.
Kamiji: Firstly, we are seeing more andmore women working in engineering
positions, an area that has traditionally
had a lower percentage of female
employees. We are gender-blind whenit comes to judging the excellenceof our employees. Respecting thediversity of our employees’ opinions
and values and making the most of
their individual strengths are the keys
to management. Meanwhile, NKC has
recently started focusing on our moresenior employees, who have many
years of experience. Until recently,
60 was a common retirement age,
but things are changing, and a set
retirement age may one day becomea thing of the past. People have two
types of intelligence—fluid intelligence*2and crystallized intelligence . In my
opinion, crystallized intelligence ismore likely to mature as we get older.
Our senior employees have a level ofexperience and knowledge beyond
comparison with that of our younger
employees. Accordingly, finding ways
to maximize the strengths of bothyoung and senior employees will
become an important management
factor for companies in the future.
Many companies are already facing
labor shortages, a situation thatwill only worsen as the population
continues to decline. In such times,
I believe it is critical to use a diverse
range of employees proactively and in
appropriate ways.
NKC has been expanding its
businesses overseas. What is yourimpression of your local staff inother countries?
Kamiji: Currently, the Group has
offshore factories in four countries.
All of our local bases already employ
very competent people, and with theenhancement of support from Japanand the training of our overseas staff,
we have hopes that each and every
one of those employees will contributeto the Group’s ongoing growth andprosperity and help the NKC Group toshine into the future.

Hoping for “NKC, where
everyone can burn bright”
Finally, could you tell us about
your hopes for NKC?
Kamiji: NKC will soon celebrate the100th anniversary of its foundation,
and will launch itself into its next
hundred years. I hope that the people
who will be in charge will be confident
in their role as the leaders of the newera. I also hope the company will
become “NKC, where everyone canburn bright.” Just like the days when
Japanese companies were recording
extraordinary growth, success comesfrom people taking on the challenge ofthe unknown and companies allowing
their people to take such challenges.
I sincerely hope that, in its next
hundred years, NKC will be just such a
wonderful company.

Turning diversity and aptitude into skills to make themost of our people*1 Seal torque: An expression of the resistance of the seal part that is generated during the bearing’s rotation. The lower the seal torque,the less energy is lost.

*2 Fluid intelligence/crystallized intelligence: Fluid intelligence is the ability to adapt to new things. Crystallized intelligence, meanwhile, isexpert ability based on past experience.

07

NKC Report 2019

NKC Report 201908

Diversity

Diversity
To Make Diversity Our Strength
Activities to promote women’s empowerment in theworkplace

March 8
Positive Action forInternational Women’s Day
The NKC Group focuses on diversity management,
in which its people’s different individual attributes,
including gender, nationality, and age, are seen as
strengths of the organization. As part of that focus,
we have undertaken reforms of our systems andwork styles and implemented a range of measuresdesigned to promote women’s empowerment in allareas of the company. To raise awareness within
the company, we hold events that are linked toInternational Women’s Day* on March 8. This isan example of the initiatives NKC is pursuing topromote the importance of women’s participation,
for the renewed recognition of gender equality andthe creation of an affluent, sustainable society.
In this way, we are making progress in firmly
establishing awareness. The NKC Group willcontinue to further enhance and promote diversity
management.
*International Women's Day: an international day of celebration

established by the United Nations in 1975. This day calls for theelimination of discrimination against women and the advancement of
women, continuing a movement that began with the women’s suffrage
demonstrations held in New York in 1908.

09

NKC Report 2019

— As part of its diversity-based
management, the NKC Group
engages in various initiatives
designed to make active use ofour diverse people. The fruits ofthese efforts are now steadily being
revealed.

Positive impacts fromchanges in female
employees' mindset andbehavior in the workplace
As a manufacturing company, the NKCGroup does have a high ratio of male
employees. Quite often, our female
employees have hesitated to express theiropinions in the workplace and in meetings.
We are building frameworks that will allow
all of our employees to fully demonstrate
their individual characteristics andabilities to contribute to the creation of asustainable society together with the NKCGroup. Positive change is resulting fromthese initiatives, particularly in the mindset
and behavior of our female employees.

To become indispensable,
self-directed personnel
Y-san talked about her new forwardlooking approach that is having a
positive impact on her work. “Inan assignment on business books
in a training course, I came acrosssome excellent books related to selfimprovement. Since then, I have read
numerous books as a way of improving
myself. Reading these books has beenvery useful for my personal growth.
Before, I lacked self-confidence, butnow, I am making an effort to raise myown value.” During a training exercisethat involved preparing presentationmaterials, M-san became more carefulwith how she “communicated,” suchas using simple, easily understood
expressions, and adding a twist to

written formats and visuals. She now
pays careful attention to what she
wants to convey in every word she
uses in business e-mails, and strives
to communicate in ways that consider
the recipient and the situation.
O-san said, “Instead of just listening,
I have learned to think everything
through very thoroughly. My boss has
encouraged me to be more active incommunicating, saying, ‘In meetings,
instead of just sitting meekly up theback, we'd like you to join in thediscussion more actively. We all want
to hear your opinions.’” O-san saysthat she is now constantly aware of theimportance of making herself heard inbusiness situations.

Aiming to become a selfdirected leader who strives
for personal growth,without being staying in
one’s current position
In NKC’s HR development strategy,
the Group works actively to help
employees to develop their careers
at each level. In particular, it offers
several training courses for mid-career
employees to become leaders in the
future.
T-san, who is expected to be a next
generation leader, looked delighted
as she spoke about her impressionsof the company’s initiatives. “Intraining courses, female employees
who usually do not have much to dowith each other have come together
and made a concerted effort toachieve a single goal. Reaching thatgoal through those efforts made mevery happy, and now I have manycolleagues in divisions besides myown. The curriculum on dialogue
with managers also taught me theimportance of establishing appropriate
communication as a leader.”We asked our interviewees about theirown image of what makes a good
leader. J-san said, “As someone who
leads others, I would like to have botha leader’s strong will and humility at
the same time, and to always keep
learning.” M-san and O-san also
answered, “I want to be a leader who
does not try to decide everythingalone, but instead listens to others andleads the team, and who continues tostrive for personal growth.”
K-san spoke positively about her joy
in uncovering latent skills. “There
were times when I felt overwhelmedand hesitated to communicate my
opinions to others. However, I haveacquired leadership qualities overtime as I have come into contact withmany different people through myvarious tasks and by handling workwith responsibility. I will continue tovalue my team members and becomea leader who will always keep in mind
the principle of thinking about what ismost important.”

provided for female employees todemonstrate leadership. On thewhole, the female employees weinterviewed presented a concrete
image of the leader they aspire
to, namely a leader who listens toothers’ opinions and concentrates
on their own growth. This showsthat the NKC Group offers many
opportunities for employees withpotential to play their own role
actively in the workplace. We willcontinue to promote diversity-based
management and to contribute to
the creation of a sustainable society.

— The NKC Group’s various
initiatives are bringing about
positive changes in female
employees’ mindset and thinking.
More opportunities will be

Diversity – The Key to Career
Development and New Leaders of
the Future

NKC Report 201910

Spotlight 02
Conveyor Division

Spotlight 02

Conveyor Division

Since production began in 1952, NKC’s
Conveyor Division has continued to
expand and evolve. Responding flexibly tothe diverse conditions of each individual
site, the Division has contributed toindustry through improvements in working
environment, costs, safety and security,and other factors.

Its customers cover a wide range of fields,
including the automotive industry, home
appliances, electronics, and logistics. In
particular, NKC systems are operating on
automobile production lines all over theworld, and boast a significant share of
the Japanese automotive sector. In recent
years, it has also ventured into the robotics
sector.

Total support for logistics systems, from design and development tomanagement

Conveyor Division“Creating” through True Global Development
Based on the vision of“Creativity for Prosperity”
First, could you please tell us
about the mission and vision of
NKC’s Conveyor Division?
Murai: In our Medium-Term Business
Plans for 2018-2022, we establisheda mission “to contribute to society
through the global supply of total
engineering, through our accumulated
conveyance and logistics technologies,
and the realization of the ultimate
in energy conservation and fullautomation in production and logistics.
To achieve this mission, we are
currently rolling out activities based on
our vision of “Creativity for Prosperity.”
What, precisely, does this“Creativity for Prosperity” in yourvision mean?
Murai: It is an expression we madeup ourselves that means connecting
our creative intentions to prosperity.
In other words, connecting people,
products, quality, service, and sincerity
to discover and deliver new value. In
terms of concrete actions, our intention
is to grow into a general logistics
system company based in China andthe Philippines, with offshore locationsin 16 countries (Japan, United States,
Europe, and Asia). To this end, we are
pursuing global strategies in which our
product R&D and sales are developed
and accelerated on a marketing basis.

Aiming for “True Globalization”
with local roots
The group is looking at shiftingits business base overseas. How
will you pursue this plan?
Murai: In the past, we have been
contracted by Japanese manufacturersof home appliances and automobiles
to perform on-site installation ofequipment for the development of
their overseas operations. Once thatwork was completed, we developed
our own business in those locations,which became our current offshorebases. We are now working on shifting
our production to these bases. More

importantly, because we have long
relationships with the local market
and track records of sales in thoselocations, instead of merely “expanding
overseas,” we have realized “TrueGlobalization.”

This approach applies not just to our
products, but to our employees andcustomers as well. In this regard,
how precisely we identify those
local circumstances is an important
challenge for “True Globalization.”

Could you tell us more about
this “True Globalization,” in which
you have united as one with thelocal market?
Murai: It means globalization that
follows the intention of the word“localization.” In the past, wedeveloped products in Japan that
had potential for global demand anddelivered them to overseas markets.
However, when we looked at thecircumstances of individual markets,
we realized that demand was different
in each of those locations. This has
prompted us to conduct our business,
including R&D, manufacturing,and sales, in accordance with eachindividual market’s circumstances.
In other words, we are pursuing
globalization from local perspectives.

It will be interesting to see aJapanese company conducting R&D
overseas.
Murai: We are contemplatingexchanges at the R&D level in future.
This means our Japanese and overseas
locations will introduce their respective
necessary outcomes to each other, andwe are steadily preparing for that. We
hope to realize this vision in very near
future.

Interaction with “people”
brings greater vitality
If you were to liken theConveyor Division to a person, what
image would come to mind?
Murai: The Conveyor Division is often
likened to a hunter. Our development

Fukushi Murai
Executive Officer and General Manager, Conveyor Divisionof new business is symbolic of thatimage. Currently, one of the key
challenges in the medium-term plan isa focus on new business. This means
expanding our target from our existing
BtoB model to BtoC or to BtoBtoC.
This is exactly what I mean by“hunter-like” business development.
We are currently restructuring fromthe conventional, function-basedorganization to a structure that is
divided into individual products,
projects, and targets.
What skills do you think the
personnel of your division need?
Murai: I think communication skills
are very important, no matter what thejob. For example, value-added productdevelopment, which is very popularthese days, requires appropriateorganizations and frameworks, andin new business development, weneed to be able to communicate
with customers in new fields. For abusiness to grow, nothing is more
important than interaction withothers, so employees with excellent
communication skills will be essential.
What approaches are you taking
with your people to invigorate thebusiness?
Murai: The first thing is inter-divisional
personnel exchanges. For example, in
future, we will accelerate the sharingof expertise between divisions ofvalue-added product development.
Personnel exchanges to accompany
this will bring unity to the company
and help generate more great ideas.
We already have numerous crossdivisional workshops but I am
looking forward to having more suchproductive meetings. We are also
engaging in diversity as an important
theme. Human resources strategies
that aim for diversity, such as actively
promoting women and developinga more multinational workforce,are crucial in this day and age. In
terms of developing a multinational
workforce, we have started introducing
job descriptions* for future global

personnel exchanges. We are currently
working very hard to achieve thesales and profit targets set out in themedium-term plan. With our excellent
people and products, we will be able
to achieve these targets. I believe there
is no more important job than humanresources development, based on mymany years of experience in cultivating
people.
Is your passion for humanresources based on your belief
that business is underpinned bycommunication, as you mentioned
earlier?
Murai: When I was assigned to asite manager position in the UnitedStates, I gained the trust of the locals
by communicating with them. I
participated in and became part of thelocal community, and I truly felt that I
was a member of the local company.
This helped me to do my job better. I
achieved all that by communicatingwith people. There is, of course,
more to it than that, but thoseexperiences helped me to realize that
communication is vital to success inbusiness.

No dream, no success
Could you tell us about yourown personal philosophy in yourwork?
Murai: I was once involved in design
work. When I went to the construction
site, they were constructing thebuilding exactly as I had drafted it.
For example, if I set a distance of
70 cm, that was exactly how it was
actually done. It really amazed me.

The realization of that 70 cm wasthe culmination of the passion andefforts of many people, including
those who proposed it, those who
built it, those who installed it, andthose who checked it. Moreover, weknow exactly why this dimension of
70 cm was realized. Experiencing thiswork brings an understanding of how
hard others work toward the mission,
and we can explain the products withconfidence. This is my ideal image
and the basic approach that we havemaintained for 70 years. This may
have something in common with thephilosophy of diversity, in terms of
mutual acknowledgement of others.
Finally, could you send amessage to the people in yourdivision as its executive?
Murai: As I mentioned in my 2019
New Year’s message, I really want toconvey the words of Yoshida Shoin.
“No dream, no ideal. No ideal, noplan. No plan, no action. No action,no success. Therefore, No dream, no
success.”
As Shoin says, having a dream is
crucial. I hope every one of you has
your own dream as you move forward.
Thank you. Could you tell us
your own dream, please?
Murai: Currently, we have more than
850 personnel working in the Conveyor
Division around the world. I would liketo learn the names and faces of eachand every one of them and to talk tothem all as I shake their hand. It may
not be easy, but I really hope to makethat dream come true.

Appropriate communication
at all times* Job description: Document that describes the details of a job, including position, purpose,

11

NKC Report 2019

responsibilities, and contents of work, and required skills. It is an important document that iscommonly used in Western companies.

NKC Report 201912

Inclusion

Inclusion

Each person looking forward
toward their own future— For the members of any
organization to work together andproduce results, communication skills
are also extremely important.

Creating the NKC Group’s futurewith enthusiasm and passion.
— The younger generation are theones who will take the NKC Group
into the future. We want our young
people to accumulate all manner ofperspectives, values, and knowledge
through many different experiences
and to grow into people who willleverage those perspectives, values,
and knowledge to engage in all things
autonomously. We believe that thisis what will create the future of the
NKC Group. To support that growth,
the NKC Group offers a variety ofdevelopment opportunities for our
younger employees.

Evolving into true businesspeople several years after
joining— For the first several years
after joining the company, young
employees engage in practicalbusiness while acquiring the qualities
that any member of the workforce
needs through training and othermeans.

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NKC Report 2019

After joining the company, young
employees renew their awarenessby encountering more practicalknowledge and business. In Y-san’scase, working in his current position
helps him to understand that costconsciousness and customer services
are important fundamentals. To ensurethat any future labor shortage will not
result in a decline in work efficiency
across the company, including in theseareas, he is currently concentrating his
efforts on coming up with labor-saving
methods.
Since joining the company, O-san has
made a habit of measuring her own
working hours and compensation forthat labor, and giving serious thought
to the efficient use of her time. She isalways conscious of positioning herself
so she can make the most of her
strengths to achieve that, and strives
to improve her own profitability.
K-san, who is engaged in overall
progress management and in
identifying and adjusting the key points
on site in production management,says his sense of responsibility toward
his job is increasing as he gains moreexperience. He finds his job at his
current workplace quite challenging,but, at the same time, he can also feelhimself growing, which he believes
will help lead him to the next step inhis career.

Communication with members fromother divisions and other positions
provides younger employees with
opportunities to cultivate newperspectives in their work. This isevident in I-san’s comment. “When I
discuss things or work on joint tasks
with employees I would not normallyinteract with, such as in training andprojects with other divisions, I canencounter new perspectives and waysof thinking. Often, it gives me newideas that I can put to use in my own
work.” As M-san says, “In a training
session I took part in, there was atask where we had to consider our
boss’s position, and that completely
overturned my own understanding andperspective up to that point. Whenit came to doing the task, I realizedthat such a position, of always having
to think of the team, is actually very
hard.” These young employees haverealized how communication takes
different forms in different positions,and have used that awareness to buildsmooth relationships in the company.

Work-life balance— Using one’s private timeeffectively and in fulfilling ways also
has a positive effect on one’s work.
A fulfilling private time can also help toimprove work skills and have a positiveeffect on personality development.
Everyone has their own way of
spending their private time. Y-san usesthat time for career development. “I
am constantly thinking of ways to do
my work more efficiently within regular
working hours, even in very busy
times. I also make effective use of myprivate time and would like to study so
I can gain more specialist knowledge.”
K-san believes that language skills are
essential to the business scene in the
NKC Group as it extends its businessglobally, and is developing those skills
for the sake of advancing his own
career. I-san sees benefit in keeping aclear division between his work andprivate life. “After I finish for the day,I completely separate myself from mywork and enjoy my private time to thefullest.” This makes me more refreshed
and I can look at my work again in amore comprehensive way, resulting ina better environment.’

Realizing teamwork through diverse people
Gender ratio of new university- graduate recruits*

FemaleMale

Family, a pillar of support— Fulfillment in business careerand life stages, for everyone whoworks with us. That is what the NKCGroup offers.
The NKC Group strives for theenrichment of all employees inboth work and private life, andour young employees display anambitious attitude on the basis of thatphilosophy. For example, O-san says,“Even when my life stage changes,
I hope to balance both work and my
private life as I pursue my career, so I
will work hard on both to make surethat happens.” M-san also displayeda very positive attitude, saying, “Timespent with family is irreplaceable andI cherish it greatly. My responsibilities
at work have been growing and myjob is very rewarding, so I want toacquire more specialist knowledge andadvance my career.”— The NKC Group respects theperspectives and values of all of ouremployees. Our young employees
are required to grow steadily throughtheir experiences and to work with anindependent and self-driven mindset
so they can contribute not only to thegrowth and development of the NKCGroup, but also to the creation of asustainable society. We will continue
to promote initiatives that will makethe most of the individual traits ofour employees and draw out theirabilities to the maximum.

50 50
%

%

With the aim of making diverse individuality astrength of its organization, the NKC Group has
actively recruited a diverse range of people. For
example, the gender ratio of our new universitygraduate recruits in FY2018 was 50:50*. One ofthose new recruits is a foreign national. Everyone in
NKC is able to work in team settings that transcend
genders, nationalities and age groups. We are also
promoting work styles that offer a good work-lifebalance and that will allow all employees to makethe most of their skills, experience, and perspectives
to play an active role. We are pursuing these
initiatives as important action for the growth anddevelopment of our business activities.
* FY2018 actual figures. Includes recruits of the same level asuniversity graduates.

Training for new recruits
After they join the company, our new employees
participate in factory training where they learn about
the products and technologies of the NKC Group on
the ground. Later, they undertake language training
in the Philippines to improve their English skills.
This also gives them the opportunity to learn aboutother cultures and languages by interacting with thelocals.

NKC Report 201914

Spotlight 03
Sash Hardware Division

Spotlight 03

The Sash Hardware Division leverages thetechnologies cultivated in bearing retainers
to deliver indispensable products that
support people’s living environments.

Sash Hardware
Division

It handles a vast array of products,
including plastic rollers for window sashes
and drawers, for which it boasts the
top share in the Japanese market. The
division’s products are used in familiar
places in the office and the home. In recent
years, it has started to adapt its expertiseto place efforts into life design-related
products that add color to daily life.

Indispensable products that support our daily lives

Sash Hardware
Division

Challenge the Various Possibilities of BusinessTechnology to be proud ofand the importance of a“genba” (job site) mindset
Please give us an outline of the
Sash Hardware Division.
Nishigaki: The Sash Hardware
Division has long delivered functional
products that are indispensable tothe housing environment, under theslogan of “contributing to the creationof comfortable homes in responseto the social needs of the homeenvironment.” We have a reputation
for a high standard of technologicalcapabilities, as exemplified by the
many orders we receive for ODM*
products, in which we are totally
involved from design to production.
Could you tell us about
the specifics of your businessactivities and about some recent
developments?
Nishigaki: Our main business is thedesign, manufacture, and sales of
products for the major housing-relatedcompanies. Using the experience wehave built up through that business,
we are also developing a renovation
business. In recent years, we launched“animacolle,” a pet products brandin the B to C sector, exhibiting“Catroad+”, our first product under thebrand, at Pet Expo Osaka 2018.
What are your impressions of
the division at the moment?
Nishigaki: The people in the division
engage in their work with great
enthusiasm. At the same time, asense of monozukuri (Manufacturing)is refined through the methodology
of San-Gen Shugi (Three Important
Realities), which entails looking at
the actual product (Genbutsu or “RealProduct”) on site (Genba or “RealJob Site”) to learn about the actual
situation (Genjitsu or “Real Fact”). Thisis essential even for people who do notwork at the Genba, or Real Job Site,level, such as the design and sales
departments, but it seems that, lately,
this is being somewhat overlooked. Aslong as we are involved in monozukuri,

unless we return to the basics with adown-to-earth attitude, I do not think
our customers will be convinced. I
see the role I have been given as toexpand the business, including making
improvements in this area.
Are you saying that elevating
and optimizing the performance ofevery single person is important for
the whole?
Nishigaki: That’s right. For example,
we only have one or two sales
representatives dealing with eachcustomer, so their actions and the way
they pursue their work will be taken bythat customer as being characteristicof NKC and the division, so it isvery important. It is similar for ourgroup companies, so in that respect,
improving this environment will be
useful in raising the motivation of theindividuals.

Discovering possibilities ininteraction among groupcompanies
The way you think about the
NKC business covering all of thegroup companies is very interesting.
Nishigaki: When I was on a temporary
assignment to a group company forabout eighteen months, I realizedthat the different companies know
surprisingly little about each other.
I felt that if we could deepen ourinteraction in the areas of technology
and sales, we could mutually improvethose areas. For example, exchanges
of information about customers
and the provision of mutual support
using each other’s bases are just two
possibilities. Also, if we learn about
each other’s strong areas, it could
help with new product development
and the extension of our businesses.
I believe my experience from that
temporary assignment will be useful inthese areas.
Could you give us an example
of where such interaction within thegroup has been used effectively?
Nishigaki: Take lumber, for example.

In recent years, more and more local
companies in Osaka have been goingout of business, including some
excellent companies in the area. Oneof our large customer companies
was having trouble securing lumber
supplies because of this, so we
introduced them to one of our groupcompanies in Kanto that dealt in
lumber. The customer and this groupcompany negotiated successfully,
resulting in the group company
winning more business from that large
company. This example is not directly
related to the Sash Hardware Division,
but it did provide a new business
opportunity for that group company.

people in the division more motivatedand lively.

Do you have any alliancesthat leverage the NKC Group’s
advantages?
Nishigaki: The group company I justmentioned also specializes in theprocessing of local specialty ceramics
and stone materials. This caught theeye of one of our customers, a large
housing equipment company, and we
received an order for the processing
and production of such items. At the
moment, we have reached the stageof participating in the developmentof new products. Also, this groupcompany has its own specialist teamand consultants, and sells furniture
under original brands. We areconsidering pursuing an alliance within
the group that takes reference fromthese projects.

Could you give us your ideas
for the people the Sash Hardware
Division needs for a thriving
business?
Nishigaki: As I mentioned earlier, oneof our key features is ODM, and ourstrength lies in the ability to engage
in an all-in-one project from design toproduction. For this reason, we needpeople who excel at ODM. I also wantthem to have the ability to understandthe entire ODM process consistently
based on their skills and experience,and the ability to make proposals.
Most people who fit that description

Nurturing highly motivatedpeople who have acomprehensive perspective
Tell us about the people in the
Sash Hardware Division. What isyour impression of them?
Nishigaki: Many of them seem a little
quiet. I’m sure that, as individuals,
they all have good ideas, but I wish
they would be more proactive about
promoting them, such as having more
lively discussions. When pursuingand considering a certain theme,
aggressiveness is needed to a certain
extent, and I would like to make theFor example, what kindof atmosphere do you want tocultivate?
Nishigaki: An atmosphere in which
lively opinions fly around the room in
discussions, transcending hierarchies,
where the whiteboard is covered withkey words written on sticky notes, andwhere everyone discusses those key
words and produces outcomes fromthem. I want to create an atmospherein which everyone is lively and united.
This will surely create the driving force
for the division for the future.

tend to be experienced workers, but I
would like to develop our people so we
can appoint younger employees to thiskind of work as well.

A Return to San-Gen Shugi
What are your own intentions
toward monozukuri?
Nishigaki: In a monozukuri company,
the San-Gen Shugi I mentioned earlier
is an important fundamental. Without
it, we would not be able to survive. I
started with this philosophy myself,and I was always happy to go out
onto the factory floor. Lately, as more
highly-educated people have joined
the company, I have become a little
concerned that this San-Gen Shugi
has become less important. This has
the potential to impact greatly onhuman resources development. On theother hand, a case I saw in China wascompletely different, which I foundvery interesting.
Did you see actual San-Gen
Shugi over there?
Nishigaki: When we were installingsome equipment in a factory in China,
the local staff all gathered aroundto watch. They were unbelievably

Teruo Nishigaki
Executive Officer and General Manager, Sash Hardware
Divisionenthusiastic. I had never experienced
that level of enthusiasm in Japan, so it
was quite a shock. That experience in
China is what prompted my concernthat San-Gen Shugi is being neglected
here in Japan. Having observed theChinese workers’ enthusiastic attitude
to absorbing technologies, it may havegiven me complicated feelings about
the Japanese being too reserved.
Thank you. Could you conclude
with a message for all of theemployees?
Nishigaki: I was interested to see
products being made exactly as
they appeared in the drawings, anddelighted that people at the production
sites were finally manufacturing the
products. On the other hand, ourcustomers care greatly about usability,
durability, and safety, but we cannot
fulfill their requirements simply by
manufacturing the products according
to the drawings. Accordingly, as
people involved in monozukuri, we
need to listen carefully not only to ourbosses and others within the company,
but also to our customers, and turn the
know-how that comes from listening
into our assets. And to achieve that,
we must not forget San-Gen Shugi.
That is my message.

San-Gen Shugi isthe starting
point ofeverything* ODM: Stands for Original Design Manufacturing. Refers to the design
and production of a product under a consignor’s brand.

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NKC Report 2019

NKC Report 201916

Next NKC

NEXT NKC
Voluntary Activities in the Company
by Employee Volunteers
Activities by company-wide teams that transcend
workplace boundaries

The NEXT NKC Project was launched in the NKCGroup with the objective of taking action ourselves
to make NKC a company we can be proud towork for. It was launched by a group of employee
volunteers from various divisions and departments.
The independence of the members is emphasized
above all else. The group’s main activities aremonthly meetings and autonomous hosting of
seminars and events when the need arises. One
purpose of this initiative is to turn unproductive
daily worries and complaints into ideas for
improving the situation and stepping up to thenext level. The group aims to create a place whereideas will be realized with their own dynamism
and ability, with the slogan of “projects of
employees, by employees, and for employees.” InFY2018, the group hosted a business seminar withthe title, “Growth Mindset,” given by an external
lecturer, which was attended by more than 50
people. It also held the Meeting of NKC Parents
and Guardians, which was attended by morethan 30 staff members who are currently raisingchildren. The entire group is currently working ona “Mission, Vision, Value” (MVV) project. Throughthese activities, we are building the foundation for
the NKC Group’s future business activities.

Seminar by external lecturer— The NKC Group has embarked
on new businesses with the aimof offering further value to society.
Our new businesses revolve aroundthemes that meet society’s needs ofthe future, such as renewable energy,
improving the efficiency of farmwork, and lifestyles supported bypets. Gathering together the expertise
we have cultivated to date alongside
the latest technologies, these various
businesses are providing products
and services of high quality.

Environmental products andrenewable energy business
Today, the world is actively
engaged in environmental actions
to prevent global warming, such as
the reduction of CO 2 emissions andbreaking free from dependence
on fossil fuels. From theseperspectives, the NKC Group has
been pursuing the developmentof environmental products andproducts related to renewableenergy. Our product range includes
small wind- powered generators,
solar- powered streetlights, waste
disposal equipment, storage cells,and HEM sets for the home. We
designed these products after firstasking our customers what theywanted. They are manufactured
with meticulous care before
being delivered to our customers.
We have also started working
on a solar power generation
business and a biomass power
generation business, succeedingin operating the equipment andgenerating power according toplan. In addition to the appropriate
operation of the equipment, NKC
head office conducts regularsafety audits to ensure equipment
maintenance and site safety, andwe strive to maintain stable power
generation and accident- free sites.

New Businesses Responding toSociety’s Needs of the Future

New endeavors seen in thedevelopment of agriculturalrobotsSmart agriculture using robotics
and ICT has been attracting muchattention lately. The backgroundto this is the large volume ofhighly labor- intensive work thatJapan’s farmers carry out togrow agricultural products ofhigh quality. To offer new value
to people involved in agriculture,
the NKC Group has planned anddeveloped a farming robot named“agbee.” As well as following
behind the farm worker to help
carry loads, it can also measure
the condition of the soil in thecrop area and harvest yields,
forecast harvest yields based onthat information, and use applied
AI technologies to perform a wide
range of farming tasks. In this way,
it makes an excellent partner for
farmers.
As a new endeavor in the
agricultural sector, we establisheda strawberry farm on Awaji Island
in Hyogo Prefecture in the second
half of FY2018. The farm grows
strawberries in plastic greenhouses
spanning some 6,000 square
meters. Strawberries of highquality, the result of thoroughtemperature and moisturecontrol, have been harvested
and are already providing newvalue to customers, just like thecherry tomatoes being grownin greenhouses in Konan, Shiga
Prefecture.

“Catroad+” introduces the B
to C model
Pets are cherished members of thefamily, and it has become a very
normal thing in recent times to
see them living together with theirowners as their valued partners.
To respond to the needs of theseowners and their pets, the NKCGroup has leveraged the expertiseit has cultivated as a manufacturer
to venture into the pet- related
market with the launch of a new
brand, “animacolle” to propose“spaces for living with pets.”“animacolle” is a B to C brandbeing led by the Sash Hardware
Division. It targets the general
consumer, a group that we havenot engaged with in the past. It isa new and unprecedented style ofbusiness model for the division,
one that adapts its expertise in
housing- related accessories, thedivision’s core business, to develop
new products. The new productthat has already been launched is a
cat step (a product for cats to playon indoors) called “Catroad+.” It iseasy to install and dismantle andcan be freely arranged in different
layouts. As well as being exhibitedat various pet events, it is also
now available on the major online

shopping sites. In this way, theNKC Group is turning its eyes tofuture lifestyles and continuing totake on new challenges.
We are actively engaging in thesekinds of new approaches based on
the NKC Group vision of “striving
to be a company that is constantly
evolving and whose employees
always have pride in working.”
Going forward, the NKC Group will
respond flexibly and appropriately
to the changes in society and theenvironment and to the needs ofthe marketplace, and move forwardwith our business activities and,through them, the creation of asustainable society.

NKC Parents and Guardians Meetings

17

NKC Report 2019

NKC Report 201918

Report: With Local Communities

SOC I ETY &COMMUNITYNKC Group’s Philosophy
Through various social contribution activities forthe present and future, the NKC Group aims tobuild good relationships with local communities,
so that both the company and society will survive,grow, and prosper. We place particular value indialogue with the people of the local community.
By giving back to the community with our Group’s
knowledge, technology, and management
resources, we are carrying out social contribution
activities that are truly needed.

Social Contribution Activities
Building good relationships with local communities

Nakani-Wa andChildren’s Cafeteria
The NKC Group opened a “Children’s Cafeteria” inMiyakojima Ward, Osaka, in August 2018. In October of thesame year, we opened a multipurpose interaction space,called “Nakani-Wa.” At Nakani-Wa Children’s Cafeteria,children and other members of the local community canenjoy a free meal of curry and rice, and the space is open
for children to interact with each other, or children andtheir parents or guardians to communicate with each other.
Various activities are held throughout the year, such as
events to mark the seasons. In FY2019, coaching classes
were held for parents and children to foster self-esteem andindependence in children. In future, we plan to launch social
contribution activity projects conducted by NKC Group
employees, prompted by the local community interaction
taking place here.

Fostering an awareness of co- existence
Nationwide activities

13 128Socialcontribution
activities in Japan locations

activities

For many years, the NKC Group has actively engaged insocial contribution activities at each of its locations. Since
FY2013, the social contribution activities of all locations
have been consolidated at head office and they are now
being pursued in a more systematic way.

Welcoming tours by local schools and children
The NKC Group welcomes company tours by high school
students and children who will take Japan into the next
generation. As well as tours of the offices, factories, andemployee wellbeing facilities, we also introduce groups toprojects that are taking place in the company at the time,and hold monozukuri workshops and other programs. In
FY2018, we welcomed groups of local junior and seniorhigh school students for a variety of reasons, including aspart of their social studies or to research a particular topic,
or to see the company as a potential place of employment
in the future.

Initiatives for improving communities’ disaster
response capabilities

Concludeda disaster preparation partnershipagreement
The NKC Group concluded a disaster preparation
partnership agreement with Osaka’s Kita Ward in 2014.
The aim of this agreement is to improve the region’s
capabilities in the prevention and mitigation of disasters andin responses to them. In a program to cooperate with local
residents and government agencies at times of large-scaledisaster, we have continued to donate disaster-preparation
goods and medical supplies. In FY2018, we donated tarp
tents for use in disaster preparation and provided water
stockpiled by NKC for a local disaster preparation training
event.

As an in-house event, we also hold a “Bring Your Child
to Work Day” for local employees and their children,
providing a place for family communication.
We received a Certificate of Appreciation from Osaka’s Kita Ward forthe disaster-preparation tarp tent we donated.

Nakani-Wa’s mascot
Nakani-Wani

Welcoming many groups to tour the company

Various events, including seasonal celebrations, are held at Nakani-Wa

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NKC Report 2019

We provided drinking water stockpiled in NKC premises for a local
disaster-readiness training event.

Nakani-Wa Children’s Cafeteria for local residents

NKC Report 201920

Report: With Our Employees

NKC Group’s Philosophy
Based on the NKC Group Vision of “striving to be
a company that is constantly evolving and whose
employees always have pride in working,” theNKC Group is pursuing the active assignment
and appropriate development of our diverse
human resources, and also developing working
environments that will enable our people todemonstrate their individual strengths to thefullest and contribute to society’s growth andprosperity.
Further, in addition to constantly maintaining fairrelationships between labor and management, theentire group is striving together in active initiatives
for the creation of new value.

Greater promotion of telecommuting

Health promotion tabletop displays

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NKC Report 2019

Development of Working Environment
Promotion of work-life balanceGreaterpromotion of telecommuting
The NKC Group is promoting working styles that emphasize
work-life balance. In 2017, it introduced in earnest a workfrom-home scheme for administrative facilities, the objectiveof which is to reduce commuting times and secure time
to concentrate on the work, so that both male and female
employees can balance their work and home lives. Further,since FY2018, we have been stepping up our promotion of
telecommuting to realize flexible and autonomous working
styles, so that our increasingly diverse personnel can build
up their own respective experience, perspectives, andpersonal networks.
To embark on this initiative, we first conducted training
to inform managers about telecommuting and help
them understand its benefits. This was followed by atelecommuting trial that included those employees who
took part in the training. A subsequent questionnaire survey
found that the trial participants were able to work in a
flexible way, fitting telecommuting in with the contents of
their work and plans such as business trips and outside
meetings, and that the sense of refreshment the changeof scenery gave them helped them to come up with new
ideas. Incidentally, during the trial period, a trial satellite
office was set up as a teleworking space, and it appears
that, along with Cross Park at head office, the employees
made good use of the space.
We will continue to promote teleworking, in the hope that it
will lead to an autonomous approach to their work among
more employees, as well as improved operational efficiency,
paperless operations, and better IT literacy.

Manager telecommuting training

Safety / Health management / Labor-management relations
Fostering safety awareness on a global scale

World Safety
Conventions

Regular

The NKC Group constantly approaches health and safety
in the factories as a critical issue. While pursuing thepenetration of measures in Japan, we have also worked
on extending them to our overseas factories and sharing
information with them. To raise the standard of thosemeasures, we believe that, in addition to improvement
activities based on the current status of their own factories,
it is important that workers turn to other factories to findnew discoveries and learnings.
To that end, since 2016, the NKC Group has held a biennial
World Safety Convention with the objectives of sharing
information and building stronger relationships among
our factories in Japan and overseas. The health and safety
officers of all of our domestic and overseas factories
gathered under one roof at the 2nd Convention, which took
place on September 6-7, 2018. There were lively exchangesof opinions on individual themes aimed at establishing andimproving safety awareness. There were also presentationsof safety activity case studies at individual facilities, sharingof best practice examples at individual factories, factory
tours, and risk experience training.
We intend to keep holding the World Safety Convention asa forum to share examples and mutually raise awarenessamong our factories.

Communication between labor and management

Agreement
on full-time employment in principle
The NKC Group holds regular meetings of the LaborManagement Council to encourage appropriate
communication between labor and management, for the
improvement of the staff’s employment and workplaceenvironments. In FY2017, the Council’s Post-Retirement
Re-Employment Scheme Deliberation Committee arrangeda labor-management agreement for such a scheme,
making it possible for employees themselves to choose
how they want to work after they reach retirement age.
Going forward, to strive for further improvements in worklife balance, the Council will continue to discuss labormanagement initiatives for the improvement of employee
satisfaction (ES), including the reduction of total working
hours.

Physical and mental health management

Varioushealth events

In its aim for “health-oriented management,” the NKCGroup conducts a range of initiatives designed to promoteand manage the health of our employees. A brief overview
of those initiatives is as follows.

Health Promotion 2018 Event
NKC walking event

Health trivia

Walking events were held for thewhole month of October, with all
employees welcome to join in.
Original maps and pedometers
were distributed, and in 2018, thethird year of the event, more than
1,000 people took part.

We asked employees to sendin their health-related tips andproduced a health trivia booklet.
Prizes were presented to theemployees whose tips werechosen.

Reinforcement of nosmoking measures

Health promotion
tabletop displays

We have strengthened
no-smoking measures inconsideration of employees’
health and in response to social
trends. We have reduced thenumber of smoking areas on allcompany premises and hold quitsmoking seminars.

We produced tabletop displays
listing information about diet,alcohol, smoking, and sleep.
These displays have been placedin employee cafeterias for greater
visibility.

NKC Report 201922

Report: With the Global Environment

NKC Group’s Philosophy
The NKC Group has long practiced proactive
environmental measures in our business activities,
and all of our employees have engaged intheir work with a consciousness of protecting
the global environment. Those efforts are notconfined to energy conservation. They are also
evident in the creation of renewable energies
through environmental businesses. Through these
activities, we are contributing to the prevention of
global warming.
Efforts to protect the global environment arealso being appropriately and actively pursued at
the NKC Group’s overseas production facilities(the United States, Sweden, the Philippines, andChina), in accordance with the laws, regulations,and local customs of each country.

Reduction of Environmental Burden,
Prevention of Global Warming
Energy conservation activities

Rate of introductionof environmentally-friendly
vehicles for corporate fleet

Protection of biodiversity
Resources conservation actions

98%

The NKC Group promotes energy conservation efforts
for the prevention of global warming at our workplaces
and production environments in Japan and overseas.
For example, we have actively installed energy-saving
production equipment, air-conditioning systems, lighting
fixtures, and other equipment, and insulated the roofs
and walls of our buildings. For our corporate fleet, wehave achieved an almost 100% rate of introduction of
economically friendly vehicles in our production facilities inJapan, including corporate headquarters.
So that our employees can participate in energy-saving
activities in their daily lives, we have adopted the Ministryof the Environment-advocated programs, “Fun to Share”*1,“Cool Biz”*2, “Warm Biz”*3, and “Cool Choice”*4, and are
putting in place things that each individual can do to protect
the global environment.

Zeroemissions

Carbon offset

12

consecutive years

Total offset
until FY2018337

tonnesThe NKC Group is engaging in company-wide resources
conservation activities as well as energy conservation.
We promote 3R (reduce, reuse, recycle) for the reductionof waste at its various business premises and production
facilities, achieving zero emissions*5 for the 12th consecutive
year in FY2018.
To reduce the burden on the environment, we strive to
conduct appropriate environmental management, such as
conducting regular questionnaire surveys of our partnercompanies.

In addition to reducing CO2 emissions at its workplaces andproduction facilities, the NKC Group has also introduced
carbon offsets, reaching a total of 281 tonnes in offsets in
FY2017 and 337 tonnes in FY2018.
The NKC Group’s carbon offset initiative was published in
the 4th and 6th collection of case studies of the Carbon
Offset Awards. These awards are conducted by the Carbon
Offset Promotion Network and sponsored by the Ministryof the Environment, Ministry of the Economy, Trade andIndustry, and Ministry of Agriculture, Forestry and Fisheries.
The NKC Group will continue to strive for the reduction of
CO2 emissions as part of our biodiversity protection efforts.

Resources recycling

Evaluation of environmental measures

Energy conservation activities

Distribution of
Eco Card

In accordance with the NKC Group Corporate Code of
Conduct, we have established an environmental policy as
the standards for the entire Group. A document called the
NKC Eco Card, which contains this environmental policy
and actions that individual employees can take, has been
distributed to all employees. With a motto of “Let’s leave agreen Earth for future generations,” our people make efforts
to improve the environment in their daily work. This Eco
Card has been translated into English and Portuguese forcirculation among our non-Japanese employees.

Rate of waste
plastic recycling

100%

The NKC Group is engaged in the recycling and appropriate
disposal of waste products. Plastic waste, particularly inthe oceans, has become a serious issue throughout theworld. The NKC Group was quick to start appropriate
separation and reduction of waste and to seek out
appropriate recycling businesses. Single-material waste
is sent for material recycling, and waste products that are
more difficult to re-use are sent for chemical recycling, orare turned into solid fuel, RPF (Refuse Paper and Plastic
Fuel), and thermal-recycled for use as fuel for paper
manufacturers and other businesses. We have continued tomaintain our record of almost 100% plastic recycling.

AwardedFY2018 Osaka City Environmental Award
In recognition of our proactive environmental activities
and contributions to society, including the establishmentof the NKC Group Environmental Policy, our thoroughenvironmental management through ISO14001 certification,and the publication of our CSR Reports, the NKC Groupwas presented with a FY2018 Osaka City Environmental
Award in the Business Operator category. The award cited
our long-running clean-up activities in the vicinity of ourbusiness premises and our active participation in local
activities.

*1 Fun to Share: A campaign to share and communicate environmental initiatives for the creation of a low-carbon society. The initiatives of declaring
companies can be viewed on the website.

NKC’s Environmental Awareness- Raising Activities

NKC Eco Card

*2 Cool Biz: Campaign that encourages light business attire with the objective of saving electricity in summer (campaign period: May – September).
*3 Warm Biz: The winter version of Cool Biz, this campaign aims for a comfortable working environment even at a room temperature of 20°C, byencouraging people to dress warmly, so as not to rely on excessive heating (campaign period: November – March).

23*4 Cool Choice: Campaign to combat climate change and reduce greenhouse gas emissions in homes and workplaces.
*5 Zero emissions: A concept that strives to achieve zero final waste through thorough recycling, so that all waste products are completely used up
NKC Report 2019

on a society-wide scale. Also refers to activities in line with that concept.

NKC Report 201924

Report: With Our Customers and Stakeholders

CUSTOMER &QUALITY CONTROLNKC Group’s Philosophy
Quality assurance and improvement is an
important promise that we have made to ourcustomers who use NKC Group’s products,
technology, and services. Since our foundation,
the NKC Group has been making tireless efforts
to fulfill that promise and to deliver consistently
high-quality and reliable products, technology,
and services to all of our customers. This
commitment is evident in our development offrameworks based on quality assurance andcontrol policies and the various initiatives for the
maintenance and further improvement of our
products, technology, and service quality provided
by the individual divisions and departments. To
respond to any request of our customers aroundthe world, we strive to maintain our quality control
at consistently high standards not only at our
production facilities in Japan and overseas, butalso in cooperation with our partner companies
and suppliers. The NKC Group has establishedoriginal quality management standards and will
not deliver any product, technology or service
unless it is of an equivalent standard to that ofour competitors. We are continuously refining
ourselves to meet these high standards that wehave set for ourselves.

Quality Assurance & Quality Management

Bearing Retainer Division
With its slogan, “Achieving the highest quality in the market
economically,” the Bearing Retainer Division, united with
the Quality Assurance Group in the Technology Divisionand our production facilities in Japan and overseas (7 intotal), endeavors to maintain and improve product quality.
Through these initiatives, the division conducts thoroughquality management in accordance with international
quality management standards such as ISO9001*1 andIATF16949*2 for a wide range of products. Those products
include its flagship bearing retainer products and otherproducts for automobiles, windmills, and Shinkansen rollingstock. It also combines these initiatives with internal audits.
To enhance its quality management and quality assurance
frameworks on a global scale, the division shares its quality
management principles through information exchanges
among relevant personnel at monthly quality meetings andannual global quality meetings. It also endeavors to raiseawareness on the ground through grade-based training
courses at its production facilities in Japan conductedby Corporate Headquarters’ Quality Assurance Group.
The Bearing Retainer Division’s track record of quality
assurance and management has been well received bymany customers. To deliver more trustworthy products tocustomers and to maintain and raise the reputation of our
products, the Bearing Retainer Division is implementing
new technology such as AI and IoT and developing its
personnel.

Conveyor Division
With its slogan of “conveyors that will not stop, or that canbe immediately restored even if they do”, the Conveyor
Division constantly strives to improve and maintainquality. The Conveyor Division has three facilities inJapan and overseas. Important information such as theresults of deliberations at regular management meetings
are communicated from the Head Office to each site.
This provides the facilities with frameworks for sharing
information and responding swiftly and appropriately to any
eventuality.
The Conveyor Division has positioned the Shiga Plant, its
production facility in Japan, as its global “mother plant”
and pursues thorough quality management there, working
in tandem with Corporate Headquarters. Feedback from
customers, plants and other front-line workplaces
is incorporated into drawings to make further improvements

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NKC Report 2019

Complianceto quality. Further, the Shiga Plant has prepared a skill
distribution map for each employee by establishing
operational matrices that set evaluation criteria for eachdepartment. The Plant uses this map and the plant’s unique
Meister Program to make the skills of its workers visible
at a glance. This system enables us to provide employeeswith instruction and education that is appropriate to theirindividual skill levels, to ensure that quality is maintained
and improved. The Conveyor Division will continue toengage in various initiatives, including those described
here, to win high praise from its customers and to allow it
to create products that can contribute to society.

Compliance training
To foster awareness of compliance throughout the entire
company, the NKC Group conducts knowledge acquisition
training and practical workshops through case studies.
We also conduct similar training during new employee
orientation in April every year, and in FY2018, we held
training sessions for mid-ranking management, delivered byexternal instructors. In FY2019, we started training sessions
for newly appointed managers. With these initiatives, weare continuously striving to foster awareness of compliance.

Sash Hardware Division
With its slogan, “Achieving the highest quality in the market
economically,” the Sash Hardware Division is working
with all of its on-site employees to establish management
frameworks at its three locations in Japan and overseas.
The division decides its quality management policies basedon the previous year’s performance and customers’ wishes.
It strives to manufacture parts and finished products safely
and securely, together with its production plants in Japanand overseas and its partner plants.
In terms of production processes, the division has achieved
results by improving things that bother employees andinefficient processes of its own accord. It extends thoseresults across the group by sharing them with production
facilities in Japan and overseas. Regarding quality
management, the division is seeking new ways to improve
quality management standards and is pursuing initiatives
for quality consistency. In these ways, the Sash Hardware
Division strives to raise its management standards throughhuman resources development both inside and outside
the company for the creation of frameworks for quality
management. In so doing, it engages in initiatives for the
pursuit of manufacturing that will be well received by its
customers. It is developing initiatives for the pursuit ofmonozukuri” that will receive even greater praise from its
customers.

Orientation for new employees*1 ISO9001: International standard for establishment and maintenance of Quality

Management System, while evaluating ongoing improvement of its
effectiveness.
*2 IATF16949: International standard for quality management systems for the
automobile industry, administered by the International Automobile Task Force.
Training courses for middle management

NKC Report 201926

Overview of NKC

Overview of
NKC

The NKC Group established a conveyor
manufacturing facility in Memphis, Tennessee, USA
in 1980. Since then, we have established design,
manufacturing, and sales facilities around the world
to deliver high quality technologies, products, andservices that respond to our customers’ trust in us.

With production facilities nationwide, the NKCGroup surely delivers high-quality, high-performance
products to our customers. With our outstanding
technologies, production systems, and meticulous
services, we respond to our customers’ needs with
precision.

Aichi Sales Office/Sub Office
75, Hirata, Uchisaiwai-cho, Chiryu,
Aichi 472-0042
Sales Office Tel: +81(0)566-85-1300
Sub Office Tel: +81(0)566-85-1444

Kosai Sub Office6233, Shirosuga Shukuhoku, Kosai, Shizuoka 4310451
Tel: +81(0)53-579-2323

Atsugi Sub Office
5-2-31, Onna, Atsugi, Kanagawa 243-0032
Tel: +81(0)46-222-4566

Domestic Production Facilities

Overseas Facilities

Tokyo Branch
7th Floor, Yaesu Dai Building
1-1-1, Kyobashi, Chuo-ku, Tokyo 104-0031
https://www.nkc-j.co.jp/company/office.html
Head Office
3-3-5, Tenmabashi, Kita-ku, Osaka 530-8566
Tel: +81(0)6-6351-4832

Mie Plant
650, Hisai-shinmachi, Tsu, Mie 514-1118
Tel: +81(0)59-256-5100

Nabari Plant
1300-67, Yabata, Nabari, Mie 518-0605
Tel: +81(0)595-64-3733

EuropeAsia & Oceania

・Sweden・United Kingdom
・Hungary・Spain・Japan・China・Philippines
・Australia
・Taiwan・Malaysia
・Thailand
・India・Indonesia

NKC MANUFACTURING
SWEDEN AB

North America, Latin
America
・USA・Canada・MexicoKyushu Sub Office
2-8-4, Aratsu, Kandamachi, Kyoto-gun,
Fukuoka 800-0344
Tel: +81(0)930-26-2425

Shiga Plant
4, Hie-cho, Konan, Shiga 520-3203
Tel: +81(0)748-75-2191

Osaka Plant
1-3-1, Neyaminami, Neyagawa, Osaka 572-0855
Tel: +81(0)72-823-4151

NAKANISHI MANUFACTURING
CORPORATIONNKC MANUFACTURING
PHILIPPINES CORPORATIONNKC CONVEYORSINSTALLATION CO.

JIG Plant
3-3-5, Tenmabashi, Kita-ku, Osaka 530-8566
Tel: +81(0)6-6351-2217

Kawachi Plant
1626, Niwaji-cho, Neyagawa, Osaka 572-0066
Tel: +81(0)72-829-7285

NKC CONVEYOR FOSHAN
CO., LTD

27

NKC Report 2019

NKC Report 201928

Editor's Note

Editor's Note

On the Release of NKC Report 2019We, the NKC Group, have been issuing our CSR Reportto our precious stakeholders since 2009. While thecontents and style of the Report have gradually changed
over the past ten years, it has played an important role
as a communication tool for stakeholders to gain a broad
knowledge of the various aspects of our business. During
the production and publication of this milestone 10thedition of our CSR Report, we reassessed the origin of NKC
Group’s Business Activities. At the same time, we placed aparticular focus on our people, who will lead the NKC Group
into the future, and on the shape that the NKC Group’s
diversity and inclusion policies, which support our people,
will take over the next 10 years and beyond.
Society is in constant motion and we are facing many
challenging global issues. Hand-in-hand with our
stakeholders, the NKC Group will contribute to the creationof a sustainable society as a responsible corporate citizen
and as a company whose employees can take pride inworking there.

Let's
Get
Rolling
NKC Repor t 2019

Let’s Get RollingWe, the NKC Group will continuously and actively promotevarious initiatives to meet the expectations of all our
stakeholders.

Nakanishi Metal Works Co., Ltd. 2018-2019
Activity Report 10th Edition[Publication date]

September. 2019

[Planning/Supervision/Publication]

Nakanishi Metal Works Co., Ltd.

[Editing]

CSR Office, CSR Department[Editing Cooperation/Design]

Daishinsha Delight Inc.

[Printing/Binding]Live Art Books Inc.

[Publisher/Publication Location]

Nakanishi Metal Works Co., Ltd.
3-3-5, Tenmabashi, Kita-ku, Osaka
530-8566
CSR Office, CSR Department

www.nkc-j.co.jp

29

NKC Report 2019

NKC Report 201930