Toyo Seikan GroupCSR Report 2016

Toyo Seikan Group Holdings, Ltd. CSR Oﬃce
Osaki Forest Bldg., 2-18-1 Higashi-Gotanda, Shinagawa-ku, Tokyo, Japan
Tel. +81-3-4514-2303

Published in December 2016

Open Up and
Be Inspired

Table of Contents

Company Prof ile......................................................... 4
Business Overview..................................................... 4
Message from the President.................................... 6
CSR Management of Toyo Seikan Group........... 10

Toyo Seikan Group contributes to the solution of social issues through its business activities.

Corporate Governance........................................... 12

All employees of the Group are aware of their social responsibility in daily operations and act

Shareholders and Investors................................... 13

accordingly.

Global Environment................................................. 14

Through these efforts, Toyo Seikan Group creates the values of

Toyo Seikan Group Companies............................. 16“Open Up and Be Inspired”, and aims to become a company that
contributes to creating a sustainable society.

Editorial Policy

Basic ReportToyo Seikan Group, under the holding company system,

Scope of the Report
Domestic and overseas group companies including
Toyo Seikan Group Holdings, Ltd.
Period covered: April 1, 2015 to July 31, 2016
Numerical data: April 1, 2015 to March 31, 2016
Publication
December 2016
(Next publication scheduled for December 2017)
Reference Guideline
ISO26000 (Guidance on Social Responsibility)

promotes group management based on CSR management.
This report was created with the aim of clearly communicating
the CSR vision and activities of Toyo Seikan Group to its
stakeholders.
The Group’s basic stance on CSR is to have a sincere dialog
with all its stakeholders and respond to them.
We would be happy to share your opinions and feedback. For
additional information not covered in this report, please visit
our website.

http://www.tskg-hd.com/en/csr/

2

Toyo Seikan Group CSR REPORT 2016

Refer to the following for detailed activities of our operating companies.
■ Toyo Seikan Co., Ltd.: Sustainability Report
http://www.toyo-seikan.co.jp/e/eco/■ Toyo Kohan Co., Ltd.: CSR
http://www.toyokohan.co.jp/en/csr/index.html■ Toyo Glass Co., Ltd.: Environment and Social Report
http://www.toyo-glass.co.jp/environment/report.html■ Tokan Kogyo Co., Ltd.: Environment and Social Report
http://www.tokan.co.jp/english/environment/environment_manage.html■ Nippon Closures Co., Ltd.: Environment and Social Report
http://www.ncc-caps.co.jp/corporation/eco_report.html■ Tokan Material Technology Co., Ltd.: Environment and Social Report
http://www.tomatec.co.jp/global/en/environment.html■ Toyo Aerosol Industry Co., Ltd.: On Environment
http://www.toyoa.co.jp/environment/
Toyo Seikan Group CSR REPORT 2016

3

Company Prof ile
Financial Data (Consolidated)

Toyo Seikan Group Holdings, Ltd.
Established

June 25, 1917

Representative

Takao Nakai, President and Representative Director

Capital11,094,600,000 yen

Head Office

Osaki Forest Bldg., 2-18-1 Higashi-Gotanda, Shinagawa-ku, Tokyo, Japan

Number of Employees

391 (consolidated: 18,884) as of March 31, 2016

Net sales (Billion yen)
850

800

Operating proﬁt (Billion yen)

Ordinary proﬁt (Billion yen)

40

40

30

785.2

30

32.3

802.0

29.6

27.8

784.3

750

20

700

10

26.6
23.8

20

Business Overview
Packaging business

Steel plate related
business

Functional materials
related business

0

15.0

0

2013

2014

2015

0

2013

（FY）

2014

Net sales by region

This segment primarily manufactures

This segment primarily manufactures

This segment primarily manufacturesand sells various packaging containers

and sells various steel plate materials

and sells mat er ials with v ar ious

to support people’s daily lives, suchthat play a key part in every phase offunctional properties, such as

as metal cans, plastic containers, caps,

daily life, such as materials for cans,aluminum substrates for magnetic

bottles, paper containers and aerosol

materials for electrical and electronic

disks, functional films for optics, glost,

products.

components, materials for automotive

trace-element fertilizer, pigments

and industry machinery parts,and gel coats.

10

2013

（FY）

2014

2015

（FY）

Net sales by business segment
Others (U.S., etc) 7.7％

Asia
(Thailand, China,
Malaysia, etc.)

2015

Functional materials
related

4.8％

7.4％

Real estate related 0.9％
Others 2.3％

非財務データ（連結）
Steel plate
related
６.8％

Japan

84.8％

Packaging

85.2％

construction materials and materials

Machineryandequipment

for household electrical appliances.
Earnings per share (Yen)Net assets (Billion yen)100

Other businesses

No. of employees (Persons)800

19,000

New businesses

Manufacturing and sales of machinery75

and equipment related with pack-

600

667.7

710.7

18,884704.1

18,50018,446

aging containers, such as container

68.03

manufacturing equipment and filling& seaming equipment.

18,34450

400

18,000200

17,50049.43

25

Logistics

4

In addition, the Group manufacturesand sells hard alloys, machinery and

we are expanding into new businessappliances and raw material products

areas such as IT, energy, life sciencef o r a gr i c ul t ur e , s e ll s p e t r o l e um

and nanotechnology.

M o t or t r uc k t r ansp o r t a t i o n andproducts, and engages in non-life

warehousing mainly for groupinsurance agency business and realcompanies.

estate management business.

Toyo Seikan Group CSR REPORT 2016

By leveraging our core technologies,
17.77
0

0

2013

2014

2015

（FY）

0

2013

2014

2015

（FY）

2013

2014

2015

（FY）

Toyo Seikan Group CSR REPORT 20165

Message from the President

Toyo Seikan Group will build a new foundation
for growth reflecting on the past and next 100 years.

Q How were the financial results of FY2015 andthe business environment surrounding theGroup?

A Toyo Seikan Group's consolidated net sales for the year ended
March 2016 reached 802 billion yen (vs. 784.3 billion yen in FY2014),
and the ordinary income was 26.6 billion yen (vs. 23.8 billion yen
in FY2014). Net sales increased as a result of solid demand fromthe domestic market, and operating income grew due to Groupwide cost reduction efforts and the decrease of raw material andenergy cost resulting from the decline of crude oil prices.
However, our PET bottle business, one of our core businesses,
is facing a very harsh environment now, affected by in-housemanufacturing by our beverage customers, which now accounts
for 65% of the total demand. Further, market is drastically changing
as the demand for heat insulated paper cups is surging following
the sales increase of coffee at convenience stores, thereby causing
adverse effect to canned coffee.
Under such business environment, in an effort to leverage eachcompany's strength and maximize corporate value to countershrinking domestic packaging demand, we have reached a basic
agreement with Hokkan Holdings Limited in April 2016 for thebusiness integration of the two companies.

Q 4th Mid-Term Management Plan has started in2016. Tell us about its strategic direction andbasic policy.

A We have posted four strategies as the basic policy. All of them
are aimed to directly address the issues associated with themarket conditions and our business structure. We positioned
this Management Plan as "the phase for solidif ying foundation
for growth" to accomplish "Growing 2020", which we establishedas the Group's mid and long term growth vision.

Q How will you actually implement these four
strategies?

A Here are our four strategies.

President and Representative Director
Toyo Seikan Group Holdings, Ltd.

6

Toyo Seikan Group CSR REPORT 2016

1. D efine and pursue Group strategies under the holding
company structure.

We will promote group-wide restructuring to further seek effective
use of management resources (i.e., people, goods and money).
We will reassess the distribution of people and production
equipment in response to changing market environment, andcreate a structure where our employees can readily move froma group company to another. Specifically, we have launched a
project last year to formulate cross-functional teams consistingof suitable personnel regardless of their operating company,

department or title. Ten such teams are already organized andin action. For example, a team consisting of people from various
group companies including design engineers from Toyo Seikan
has been organized to accomplish the mission of "to make Tokan
Kogyo's paper cup forming machine the fastest one in the world",
and this team already attained some achievements. There arecountless themes we need to solve, and we are expecting many
project teams to emerge and show results.
When it comes to PET bottle, various different components of
the whole package are now being supplied to a single customer
from different group companies; bottle from Toyo Seikan, capfrom Nippon Closures, and cardboard box from Nippon Tokan
Package. In this respect, we may be required to build a system
to offer customers "one-stop-service/solution". We will address
this issue from the customer perspective.
Diversity is required for the employees who can become driving
forces toward business structure reform, overseas businessdevelopment and new business development. While we havealready set our goal for more active participation of female
employees, we will fur ther explore diversit y management
practices as well.

2. F urther restructure the existing businesses mainly
focusing on the domestic packaging segment.

As to the packaging business, which accounts for roughly 85%
of our Group's consolidated sales, we will further pursue structuralreform. Domestic market for such products as beverage, foodand household goods is shrinking due to population decline,
lower birthrate and aging population, adversely affecting our
packaging business as well. Under such environment, Toyo Seikan
implemented the Early Retirement Incentive Program last year,
for the first time since its stock listing.
Under the 4th Mid-Term Management Plan, we will further promotebusiness restructuring with such measures as making unprofitablebusinesses profitable, and if deemed unfeasible, withdrawing
from such businesses, to enhance our profitability.

3. E
 xpand business areas in the value chain centered on
packaging containers.

Under this Management Plan, we will also strive to expand new
businesses. Leveraging our group's accumulated technology
and expertise in the area of packaging over the years, we aim to
expand our business into areas where we can contribute tosolving social issues.

Specifically, in the area of life science, we are already supplying
our high-performance DNA chip to food and medical industries.
It is a new inspection technology to detect fungi/virus utilizing
Toyo Kohan's metal surface treatment technology.
As a product under development, we are now working on the

Toyo Seikan Group CSR REPORT 20167

Fourth Mid-Term Management Plan
(FY2016-FY2018)
Defined as the phase for solidifying foundation for growth
automatic cell culture system for immune cell therapy, taking
advantage of Toyo Seikan's plastic bag production and sterilization
technologies. Furthermore, applying Toyo Glass's glass technology
to optics area, the gradient index micro lens trade-named"SILICAGRIN" is an ultra-small optical device that can be directly
fusion-spliced to optical fibers. It is a next-generation opticaldevice suitable for such applications as optical communication
and ultra-small sensors.

Along with this governance enhancement, we have started from2013 measures to provide training programs to next-generation
management candidates for their further career development.
Aiming to nurture talented executives who can lead us throughfurther restructuring of the entire Group, we intend to continue
this program.

Utilizing the Group's advanced technologies, we will contributeto solving social issues by expanding into new businesses withgrowth potential.

"Management Philosophy of Toyo SeikanGroup" formulated this April?

4. E
 nhance the soundness of assets and finances in
preparation for future growth investment.

Under the 4th Mid-Term Management Plan, we have set up for
the first time the Group's target of achieving 4% ROE in FY2018.
With our commitment to solidif y f oundation during thisManagement Plan to accomplish over 5% ROE in the future, wewill achieve this target by increasing the numerator with suchmeasures as improving profitability of existing businesses anddisposing unprofitable businesses; thus improving our capitalefficiency. By doing so, we will enhance the soundness of assets
and finances, and build foundation for future growth.

Q The Corporate Governance Code has been
adopted in June 2015. How is it being
implemented?

A To assure solid growth of the Group under the holding company

structure, we are striving to enhance corporate governance, andformulated "Basic Corporate Governance Policy of the Company"in November 2015.
As to the outside Executives, there were three outside Directors
and three outside Audit and Supervisor y Board Members in
FY2015. Whereas, at the General Meeting of Shareholders heldin June this year, the number of outside Directors has been
increased by one person and now there are four outside Directors.
Each outside Executive attends monthly Board of Directors
meetings and expresses opinions from an independent andobjective standpoint. We are also frequently inviting them toinspect our major production sites in Japan and abroad to deepen
their understanding of our operations, expecting we can haveeven more free and open-minded discussions.
While I do feel our discussions at the Board of Directors meetings
are becoming more and more productive, results from theassessment of effectiveness of Board of Directors conducted byour executives pointed out that more time should be allocatedto discuss long-term management strategies. I will follow thisadvice and improve the effectiveness of this meeting.

8

Toyo Seikan Group CSR REPORT 2016

Basic Policy● Define and promote Group strategies under the holding company system● Further restructure the existing businesses mainly focusing on the domestic packaging segments● Expand business areas in the value chain focusing on packaging containers● Enhance the soundness of assets and finances in preparation for future growth investment

Q Finally, can you tell us about theA A combination of "Management Policy", "Creed" and "Vision"is called "Management Philosophy", based on which Group
companies will manage business and employees will pursue
business operations.

The group has disseminated and shared throughout the Group"Fundamental Principles" and "Work Rules" formulated by its
founder, Tatsunosuke Takasaki. However, the scope of businesswidely differs by company and some of their wordings mightsound strange or unmatched with reality. Prior to the centennial
anniversary approaching next year, I came to realize that a new,common guideline for the Group is required to leverage its
collective powers and look to the next 100 years. That was thereason we formulated the new management philosophy.
I personally am deeply attached to the expression "aspire toachieve a sustainable society" raised under the Management
Philosophy. When our company was first founded, there was nosuch phrase as "sustainable society". But when you come to thinkof it, canning and bottling technology was a tool to materialize
the sustainable society by preserving over-caught fish or seasonal
vegetables. We pride ourselves in contributing to the prosperityof society by providing, since our foundation, safe, reliable andeco-friendly products, systems and services.
Past 100 years have been a time when people highly valued theincrease of income and abundant goods. But now we are shifting
to a society where such values as environment, safety and healthare far more treasured. It will be of utmost importance to preserve
limited global resources, sustain eco-system and pass on to our
future generations the earth where human happiness can prevail.

Outline of Basic Policy●	C SR-Based

The Group’s vision for group CSR management is to “contribute to bringing happiness and prosperity to mankind throughits sincere and fair business activities”. Under this management philosophy, we will continue establishing “Toyo Seikan Group
as a brand that is trusted by people around the world” while communicating with all stakeholders.

●	G roup’s

While strategically making business decisions and promoting collaboration among group companies under the holding company
system, we will enhance the soundness of assets and finances in preparation for future growth.

Management

Management
Structure●	E xisting Business While keep creating new values to gain customer loyalty, we will further streamline and automate the Group’s productionin Japansystem, further improve profitability by partnering with third parties, and establish a sustainable profit structure.

●	O verseas

While striving to stabilize the earnings of recently established overseas subsidiaries, we will develop and implement appropriate
decisions on overseas investment based on strategies by specific businesses and regions.

●	G rowth

We will utilize the Group’s technologies to expand businesses peripheral to core segments such as machinery/equipment
engineering business that incorporates both the technologies of equipment manufacturing and container production, andstrive for constant growth of new businesses such as “life science, medical care” and “electricity/electronics, information andcommunication and energy” on which our R&D efforts are focused.

Business
Strategy

Numerical Target
FY2015 (Actual)

FY2018 (Target)

Vs. FY2015

Net sales

JPY802 bil

JPY820 bil(+2% or higher)

Operating income

JPY32.3 bil

JPY41 bil(+JPY8 bil or higher)

Operating income ratio

4.0%

5.0%

(+1 point or higher)

ROE

1.6%

4.0%

(+2 point or higher)(Dividend Payout Ratio)28.3%(Dividend Payout Ratio) 20%

Shareholder returns*	The Fourth Mid-Term Management Plan does not incorporate the impact of business integration with Hokkan Holdings Limited. The Plan will be reviewed, based on
the details of business integration, once the regulatory approval is obtained and the definitive agreement of business integration is signed.

Profit Plan by Segment
Net sales
900 (Billion yen)

802

■Packaging ■Steel plate related■Functional Materials ■Real Estate ■Others
800

820

Operating income
50 (Billion yen)

The Möbius c ycle, our Group's company logo, symbolizes
circulating and sustainable society, and I have put it together
here in writing as the core of our philosophy.

800
700

30

Together with you stakeholders, Toyo Seikan Group will stepahead toward our ultimate goal of "Happiness of Mankind". We
sincerely ask for your continued support and guidance.

600

20

100

10

770

0

■Packaging ■Steel plate related■Functional Materials ■Real Estate ■Others
41.0

40

32.3

35.0
28.0

0

FY2015
Actual

FY2016Plan

FY2017Plan

FY2018Plan

FY2015
Actual

FY2016Plan

FY2017Plan

FY2018Plan

Toyo Seikan Group CSR REPORT 2016

9

CSR Management of Toyo Seikan GroupToyo Seikan Group has established "Management Philosophy of Toyo Seikan Group" prior to celebrating
the centennial anniversary of establishment next year. Under this Management Philosophy as a new andcommon direction for the Group, we will leverage the Group's collective power and look to the next 100
years.

Basic CSR policy of the GroupToyo Seikan Group defines CSR as a commitment to contribute to the happiness and prosperity of mankind
through sincere and fair business activities. All employees of the Group understand its CSR initiatives and respondto all stakeholders.
All stakeholders

We will respect basic human rights and diversity of all people, communicate
faithfully and act with such awareness.

Customers

We will provide safe and secure products, system and services to ensure customer
satisfaction.

Business partners

We will conduct impartial, fair and transparent business activities always withgood ethics.

Shareholders and Investors

We will strive to enhance corporate value, and manage and disclose information
appropriately.

Employees

We will create a safe, hygiene and vibrant workplace.

Local societies

We will co-exist harmoniously with local societies and promote interaction withlocal communities.

Global environment

We will actively strive to preserve the global environment and improve
environmental quality.

Group CSR promotion framework
CSR Promotion Committee was established to promote CSR-based management of Toyo Seikan Group.
The Committee is chaired by the President of Toyo Seikan Group Holdings, Ltd. and comprises of its senior

Our basic philosophy
In 1933 our founder Tatsunosuke Takasaki documented
the founding principles as basic philosophy in thehandbook named “The Mission of Toyo Seikan”, andexecutives and the Presidents of all business companies as committee members.
1. Our mission is to contribute to the happinessof people.
2.	Profit is a byproduct of our business efforts

Toyo Seikan Group Holdings, Ltd.

and not our main goal.

distributed it to shareholders, employees, and industry

3.	We will work with a sense of service, promoteparticipants. Since then, Toyo Seikan Group has fulfilled

such commitment in the company and strive

its mission based on such basic philosophy. The Group’s

to ensure the prosperity of our businessessential CSR spirit is found there.

partners as well as the company.

Management Executive Meeting
Management Strategy Meeting

Audit and Supervisory Board

PresidentGroup CSR Promotion Committee
Group Compliance Promotion Committee
Group Environment Committee

Toyo Seikan

10 Toyo Seikan Group CSR REPORT 2016

Board of Directors

Toyo Kohan

Toyo Glass

Tokan Kogyo

NipponClosures

Tokan Material
Technology

Toyo Aerosol
Industry

Toyo Seikan Group CSR REPORT 201611

Management

Relationship with Stakeholders

Corporate Governance

Shareholders and Investors

We are striving to enhance corporate governance to conduct faithful and fair business.

We strive to enhance corporate value, and manage and disclose information appropriately.

Members actively express opinions at the Board of Directors,

The Company places its management top priority on theenhancement of corporate governance under the management

Information disclosure policy

Shareholder return policy

and active discussions based on such opinions have enabled

Toyo Seikan Group Holdings, Ltd. has defined its Basic IR Policy

By improving business performance of the Toyo Seikan Group,

the effective operation of the Board of Directors.

and strives to gain the trust of shareholders and investors by

the Company has been continuing its efforts to steadily increase

philosophy of Toyo Seikan Group (Management Policy, CreedManagement surveillance function is ensured based on thetimely and appropriate disclosure of corporate information.

returns to shareholders and share profits. The Company’s policy

and Vision) to enhance its corporate value and keep new growthmonitoring by outside Directors and outside Audit and Supervisory

and improvements while contributing to the society throughBoard Members from their independent and objective viewpoints,

business activities. The Company will continuously address

and through deliberation by shareholders of the proposal forthis issue.

appointing Directors every year.

established and disclosed in November 2015 to address thisthe Corporate Governance Code which came into effect on

Strategic planning and execution by theManagement Strategy Meetings

June 1, 2015.

T he C omp any has implement e d the E x e cuti v e O f f ic er

issue on an ongoing basis after deliberating the details ofsystem with the aim of clearly distinguishing the management's

Basic IR Policy
Toyo Seikan Group Holdings, Ltd. fully understands
that the timely and appropriate disclosure of corporate
information to all stakeholders including shareholders,investors and securities analysts forms the basis of asound securities market. The Company will also issue
corporate information in a timely, fair and accurate
manner through active communications with theshareholders and investors with the aim of gaining
their confidence and appropriate evaluation of theCompany.

Corporate governance systemdecision-making and supervisory functions from the business

The Board of Directors is composed of nine (9) Directors, including

and flexibility. To appropriately and promptly establish basic

three (4) outside Directors who are independent from the

management guidelines, determine various measures andmanagement of the Company. The number of outside Directors

aggressively promote management activities, “Management

represents one-third of the members of the Board of Directors.

Strategy Meeting” is held once a month which comprises full-IR activities

The Board of Directors generally meets once a month and holds

time Directors, CFO, CTO, Senior Executive Officers and Executive

The Company actively discloses corporate information in

extraordinary meetings when necessary to determine important

Officers. Further, “Management Executive Meeting” is held twice

forms such as press releases containing information on financial

issues in relation to the execution of business operations. To

a month and attended by full-time Directors, CFO, CTO, Senior

position and results. The Company also holds financial results

clarify the management responsibility of Directors and flexibly

Executive Officers and the Presidents of core business operating

briefings for the mass media and analysts as well as one-on-one

establish a management system to promptly respond to changes

companies.

meetings with domestic and overseas institutional investors as

execution functions, while ensuring management efficiency

in the management environment, the term of office of Directors
is one year. The Audit and Supervisory Board is composed offive (5) Audit and Supervisory Board Members, including three

To ensure that business activity fully complies with laws andand Supervisory Board generally meets once a month and holds

regulations and to improve management efficiency, the Internal

extraordinary meetings when necessary.

Audit Office is placed under the direct supervision of the President

Three outside Directors and three outside Audit and Supervisory

as an internal auditing department. We aim to improve theBoard Members have been reported to the Tokyo Stock Exchangeinternal control function by periodically auditing the development

as Independent Directors of the Company.

and management of the internal control system at all Toyo SeikanGroup companies.

Target group
Mass Media
Analysts
Domestic Institutional
Investors

IR activities

Shareholders

General Meeting of Shareholders(Mid-term and Year-end)●	Individual IR Meetings●	Participation in conferences held bysecurities companies

conditions and financial circumstances.

Shares (As of March 31, 2016)
No. of shares authorized to
be issued

450,000,000

No. of shares issued

217,775,067

No. of shares per unit

100

No. of shareholders

5,554

Stock Exchange

Listed on the first section of theTokyo Stock Exchange(Stock code: 5901)

Group CSR Promotion Committee

Respective Divisions

Group Environment Committee
Accounting
Audit

Individuals and others
7.66%
Government,
local public bodies
0.00%

Securities
companies
2.49%
Overseas
corporations,etc.
24.16%

Shareholder
composition

Financial
institutions
37.77%

Other domestic
corporations
21.07%

Dividend payments(yen)Group Compliance Promotion Committee

Operating Oﬃcers(Mid-term and Year-end)

Annual dividends

Consolidated dividend payout ratio （%）

20

Accounting Auditor

Audit and Supervisory Board

Representative Directors●	Publication of Reports

Election and Dismissal

Election and Dismissal

Board of Directors

100.0

78.8

15
10
5

14

14

75.0

14
28.3

20.6

0

2013
Report

50.0
25.0

0

Collaboration

12 Toyo Seikan Group CSR REPORT 2016

stability.
3.	Flexibly purchase treasury shares in response to stock market●	Financial results briefings●	Individual IR Meetings

Overseas Institutional
Investors

Corporate governance system

Audit

and long term perspectives while maintaining financial

Treasury shares 6.85%

Main Activities in FY2015●	Publication of Investor’s Guide

Management
Executive Meeting
Management
Strategy Meeting

2.	Apply retained earnings to growing areas from the medium

corporate value.

(3) outside Audit and Supervisory Board Members. The Audit

Internal Audit Oﬃce

manner, based on the consolidated payout ratio of 20% or
higher.

part of its efforts to gain their understanding of the Group’s

Internal audit

Election and Dismissal

shareholders is as follows:
1.	Pay dividends to its shareholders in a stable and sustainable

Global Environment

Accordingly, “Basic Corporate Governance Policy” has beenon returns to shareholders or distribution of earnings toShareholders and Investors

These outside Directors and outside Audit and Supervisory Board

Concept of corporate governance

2014

2015

Investor’s Guide
Toyo Seikan Group CSR REPORT 201613

Relationship with Stakeholders

Relationship with Stakeholders

Global Environment

Global Environment

We will actively strive to preserve the global environment and improve environmental quality.

ECO Action Plan

Toyo Seikan Group aims to achieve the Group’s Environmental

FY2015 is the final year under the Mid-Term Goal and the results

Vision and group companies are addressing to meet theof activities are as outlined below. 3 out of 9 targets were achieved

Global Environment

Under the ECO Action Plan 2015 which was formulated in FY2011,

Toyo Seikan Group Environmental Vision
ECO Action Plan 2022

environmental target based on specific environmental targets/

while remaining 6 were unachieved. Based on these results, theEnvironmental Vision and Long-Term Goal towards 2050

action plans set under the ECO Action Plan of Mid-Term Goal.

next Mid-Term Target was established.

Looking towards 2050, Toyo Seikan Group has fully revised the

Toyo Seikan Group has established ECO Action Plan as 5-year

Group’s Environmental Vision and newly set the Long-Term

Mid-Term Goal since 2006 and is promoting environmental

Goal (FY2050) and Mid-Term Goal (FY2022).

Shareholders and Investors

Shareholders and Investors

ECO Action Plan 2015

management of the Group.

Environmental Vision

FY2050 Long-Term Goal

Toyo Seikan Group will, leveraging all its pro-1)	Aim for 50% reduction of CO2 emission by FY2050

prietary and global technologies, contribute to2)	Reduce to the maximum extent the use of newmaterial resources, and strive to replace withrecycled or recyclable materials

T he entir e Gr oup w ill f ur ther pr omo t e env ir onment al
management.

achieving sustainable society from 3 perspectives“ECO Action Plan 2015” (FY2015 Actual)
Environmental
visionSpecific items andenvironmental targets

ActualAssessment

13％
reduction

Achieved by promoting energy-saving
activities★★★

Reduce CO2 emission(vs. FY1990)

20％
reduction

12％
reduction

CO2 emission factor related to electrical
power increased★

Reduce material input

3.3％
reduction

5.3％
reduction

Achieved by measures such as lightweighting48％
reduction

21％
reduction

Unachieved despite efforts to promote strict
waste separation

131 sites

133 sites

No. of sites increased by promoting
recycling

Promote waste
reduction andzero emission2)	Increase the numberof zero emission sites(99% or higher
recycling rate)

Chemical
substance control 2)	Reduce the releaseand transfer amountof toluene, xylene
and other organic
solvents

Promote resource
recycling

Target8.5%
reduction1)	Reduce the releaseand transfer ofchemical substances
under the PRTR Law

Promote green
procurement,
distribution andsales

we provide.

FY2015

Reduce energy consumption1)	Reduce land fill waste

Promote reductionof environmental
impact frombusiness activities

in the value chain of products/services/systems

Reduce CO2 emission during distribution

Improve material recycle rate

12％
reduction

16％
reduction

9％
reduction

94％

12%
increase6％
reduction

Release and transfer amount increased due
to increased production of various materials

Unachieved despite shifting to water-based
or solventless coatings and adhesives

7.6％
reduction

Unachieved despite efficient transportarrangement and other measures

92.5％

Unachieved despite reduction of land fillwaste and strict waste separation3)	Contribute through products and services to thecreation of a society where humans and all otherliving things on the planet can co-exist indefinitely, bearing in mind product life cycles spanning procurement, development, manufacturing,sales and customer service stages★

★★★

ECO Action Plan 2022
Mid-Term Goal・FY2016 Goal
Environmental Vision

Assessment: ★★★ Achieved ★★ Nearly achieved ★Not sufficiently addressed
Subject: All sites of domestic group companies
Base year: FY2009

14 Toyo Seikan Group CSR REPORT 2016★★★

1)	"Low-carbon Society" where CO2 emission is
reduced significantly2)	"Resource Recycling Society" where limited
resources are effectively used3)	"Harmonious Society" where blessings fromnature can be enjoyed indefinitely

Global Environment

the scope of site was expanded to include all sites of domestic
group companies from major sites of domestic group companies.

FY2050

FY2022FY2016Long-Term Goal

Mid-Term Goal

Single Year Goal★
1)	"Low-carbon Society" where CO2
emission is reduced significantly

Aim for 50% reduction of CO2
emission by FY2050

2)	"Resource Recycling Society"where limited resources are
effectively used

Reduce to the maximum extent
the use of new material
resources, and strive to replacewith recycled or recyclable
materials3)	"Haromonious Society"where blessings from nature
can be enjoyed indefinitely

Contribute through products andservices to the creation of asociety where humans and allother living things on the planetcan co-exist indefinitely, bearing
in mind product life cycles
spanning procurement,
development, manufacturing,sales and customer service stages

★

★★

★★

●	R educe by 14% CO2 emission●	R educe by 3% material input●	Promote green procurement ofpurchasing materials●	R educe by 5% CO2 emission●	R educe by 3% energy

consumption●	R educe by 1% material input●	R educe environmental risk
●	R educe environmental pollutant●	Increase purchase of certified

products●	Promote communication withexternal parties●	Promote biodiversity
conservation●	R educe by 5% emission andtransfer amount of chemical
substances under PRTR Law

Toyo Seikan Group CSR REPORT 201615

Toyo Seikan Group Companies: 97● Toyo Seikan Group Holdings, Ltd.
Holding Company● Toyo Seikan Co., Ltd.

Manufactures and sells various kinds of cans and containers and filling
equipment● Honshu Seikan Co., Ltd.
Manufactures and sells 18 liter cans, metal cans and general line cans

● Nippon National Seikan Co., Ltd.
Manufactures and sells beverage cans

● Ryukyu Seikan Kaisha, Ltd.
Manufactures and sells metal cans and plastic bottles● PET Refine Technology Co., Ltd.
Recycles PET bottles● Toyo Seihan Co., Ltd.
Manufactures printing plates for printing metal and film

● Fukuoka Packing Co., Ltd.
Manufactures and sells sealant for metal, plastic and glass containers● TM Pack Co., Ltd.
Manufactures and sells beverage PET bottle products● Toyo Seikan Group Engineering Co., Ltd.

Manufactures and sells canning machinery, bottling machinery, packaging
machinery and food processing machinery● Toyo Mebius Co., Ltd.

As of June 30, 2016

（Japan: 46, Overseas: 51）● Stolle Machinery Company, LLC (USA)Develops, manufactures and sells can and end manufacturing machines
and provides related services● Stolle Europe Ltd. (U.K.)

Develops and sells can and end manufacturing machines and provides
related services● Stolle EMS Group Limited (U.K.)
Holding Company● Stolle European Manufacturing Solutions Limited (U.K.)

Manufactures and sells can manufacturing machines and provides related
services● Stolle EMS Precision Limited (U.K.)

Manufactures and sells can manufacturing machine parts andprovides related services● Energo-Metal System Polska sp. z.o.o. (Poland)

Manufactures and sells can manufacturing machines and provides
related services● Stolle Machinery do Brasil Industria e Comercio

Equipamentos Ltda. (Brazil)

Manufactures and sells can and end manufacturing machines and provides
related services● Stolle Asia Pacific Co., Ltd (Vietnam)
Sells can and end manufacturing machines and provides related services■ Asia Packaging Industries (Vietnam) Co., Ltd.
Manufactures and sells 2-piece aluminum cans and ends

■ Asia Packaging Industries (Vietnam) Trading Co., Ltd.
Sells 2-piece aluminum cans and ends

Trucking, warehousing and others● Japan Bottled Water Co., Ltd.
Manufactures and sells containers and servers for bottled water■ T&T Enertechno Co., Ltd.

Manufactures and sells packaging material mainly for lithium-ion secondary
batteries● Bangkok Can Manufacturing Co., Ltd. (Thailand)

Manufactures and sells 2-piece steel & aluminum cans, welded cans andaluminum ends

● Next Can Innovation Co., Ltd. (Thailand)
Manufactures and sells 2-piece steel & aluminum cans

● Toyo Seikan (Thailand) Co., Ltd.

Manufactures and sells general plastic products; manufactures and sells
beverage PET bottles and undertakes contract filling; a technical support
center and administration of group companies● Kanagata (Thailand) Co., Ltd.
Manufactures and sells molds for plastic products● Global Eco-can Stock (Thailand) Co., Ltd.
Manufactures and sells resin-coated aluminum materials● Toyo Mebius Logistics (Thailand) Co., Ltd.
Trucking business● Toyo Seikan Guangzhou Co., Ltd. (China)
Sells cans, plastic containers and other packaging● Toyo Pack (Changshu) Co., Ltd. (China)
Manufactures and sells beverage PET bottles and undertakes contract filling● Stolle Tokan Machinery (Shanghai) Co., Ltd. (China)

Manufactures and sells machines and tools for packaging container
manufacturing and for canned & bottled products, and other machines andtools● STOLLE MACHINERY (SHANGHAI) CO., LTD (China)
Sells can and end manufacturing machines and provides related services● Can Machinery Holdings, Inc. (USA)Holding Company● Stolle Holdings, Inc. (USA)Holding Company

16 Toyo Seikan Group CSR REPORT 2016

● Toyo Kohan Co., Ltd.

Manufactures and sells tinplate, cold rolled steel, and surface-treated steel
sheetsManufactures and sells substrates for magnetic disks, functional films for
optical applications● Kohan Shoji Co., Ltd.
Sells steel sheets and their processed products● Kohan Kogyo Co., Ltd.

Manufactures and sells steel bands, automatic binders, hard alloys andmanufactures magnetic disk aluminum substrates● KY Technology Co., Ltd.
Manufactures and sells building materials● FUJI TECHNICA & MIYAZU INC.
Manufactures and sells stamping dies for car bodies and various molds■ TOYO PAX Co., Ltd.

Manufactures and sells packing materials; cutting, verification and packing
work■ Kyodo Kaiun Co., Ltd.
Marine transport and harbor transport services, custom agent services■ Kudamatsu Unyu Co., Ltd.

Land transport, harbor transport services, custom agent services andwarehousing■ TOYO PARTNER Co., Ltd.
Services related to employee welfare facilities and others● TOYO-MEMORY TECHNOLOGY SDN.BHD. (Malaysia)
Manufactures and sells aluminum substrates for magnetic disks■ MIYAZU MALAYSIA SDN. BHD. (Malaysia)
Manufactures and sells stamping dies for car bodies and auto parts■ TOYO KOHAN SHANGHAI CO., LTD. (China)

Sells steel sheet related products, hard materials and automatic binders andprovides related services■ Hunan TOYO-LEED Material Science & Technology Co., Ltd. (China)
Conducts research, development, manufacturing and sales of
surface treated substrates such as steel sheets, aluminum, copper, andstainless steel and any and all business activities ancillary to the above●：Consolidated subsidiary■ TOYO KOHAN Jiangsu Co., Ltd. (China)
Manufactures laminated steel sheet for cans

■ FUJI RAYHOO ENG. INC. (China)
Designs stamping dies for car bodies■ YANTAI FUJI TECHNICA & MIYAZU TRADING Inc. (China)
Sells stamping dies for car bodies■ YANTAI FUJI WILSON ENGINEERING CO., LTD. (China)
Designs stamping dies for car bodies● Tokan (Changshu) High Technology Containers Co., Ltd. (China)
Manufactures and sells plastic products● TAIYO PLASTIC CORPORATION OF THE PHILIPPINES
Manufactures and sells plastic products● T.K.G. CORPORATION (Philippines)
Land leasing■ TAIWAN TOKAN CORPORATION
Manufactures and sells beverage paper cups

■ YANTAI FUJI MITSUI AUTOMOTIVE DIE & PARTS CO., LTD. (China)
Manufactures and sells stamping dies for car bodies and auto parts■ Kohan Kogyo Korea Co., Ltd. (Korea)
Sells hard alloys and machine tools■ Tosyalı Toyo Steel CO. INC. (Turkey)

Manufactures and sells cold rolled steel sheets and surface-treated steel
sheets (construction of surface-treated steel sheet plant is in progress)■ FUJI TECHNICA & MIYAZU AMERICA INC. (USA)
Sells stamping dies for car bodies■ PT FUJI TECHNICA INDONESIA (Indonesia)
Manufactures and sells stamping dies for car bodies and auto parts● Nippon Closures Co., Ltd.
Manufactures and sells metal and plastic closures● Shin-Sankyo-Pd.
Trucking business● Crown Seal Public Co., Ltd. (Thailand)
Manufactures and sells metal & plastic caps and crown caps

● Riguan Closure (Changshu) Co., Ltd. (China)
Manufactures and sells caps for beverage● NCC Europe GmbH (Germany)
Manufactures and sells caps for beverages● Toyo Glass Co., Ltd.
Manufactures and sells glass bottles● Toyo Sasaki Glass Co., Ltd.
Manufactures and sells glassware● Toyo Glass Machinery Co., Ltd.

Manufactures and sells molds for glass and plastic bottles, and glass bottle
manufacturing machinery● Toyo Glass Logistics Co., Ltd
Trucking business, various yard operation contracting● Tohoku Keisha Co., Ltd.
Manufactures and sells silica sand● Tosho Co., Ltd.
Sells glass products■ PT Indonesia Caps and Closures (Indonesia)
Manufactures and sells plastic closures■ NCC Crowns Private Ltd.(India)
Manufactures and sells caps for beverage● Tokan Material Technology Co., Ltd.
Manufactures and sells frit products, pigments and gel coat

● TOMATEC (Shanghai) Fine Materials Co., Ltd. (China)

Manufactures and sells inorganic pigments (Complex Inorganic Color
Pigment)● TOMATEC (XIAMEN) FINE MATERIAL CO., LTD. (China)

Manufactures and sells frit for enamel, tiling and ceramics, glaze and glassfiller for synthetic marble● Sun Dragon Development Limited (China)
Holding company of TOMATEC (XIAMEN) FINE MATERIAL CO., LTD.

● Tokan Kogyo Co., Ltd.
Manufactures and sells paper and plastic packaging products● Nippon Tokan Package Co., Ltd.
Manufactures and sells cardboard products and paperware● TOMATEC America, Inc. (USA)
Imports and sells inorganic pigments, frits, etc.

● PT. TOMATEC INDONESIA (Indonesia)
Manufactures and sells frits and pigments● Toyo Unicon Co., Ltd.
Manufactures and sells corrugated plastic products● Tokan Kosan Co., Ltd.
Manufactures and sells films for agriculture● Tokan Takayama Co., Ltd.
Manufactures and sells paper container and lid products● Tokan Logitech Co., Ltd.
Trucking and warehousing● Sunnap Co., Ltd.
Sells paper cups, plates and napkins● Shosando Co., Ltd.
Manufactures and sells paper cups, pasteboard and spoons■ Takeuchi Hi-Pack Co., Ltd.
Manufactures and sells cardboard products and paperware■ SENRI TRANSPORTATION Inc.

● Toyo Aerosol Industry Co., Ltd.

Contract manufacturing and sales of aerosol and general aseptic filling
products● Toyo Filling International Co., Ltd. (Thailand)
Contract manufacturing and sales of aerosol products■ Toyo & Deutsche Aerosol GmbH (Germany)
Manufactures and sells aerosol products● Tokan Shoji Co., Ltd.
Sells packaging materials, petrochemical products and food machinery,equipment & parts● Tokan Kyoei Kaisha, Ltd.
Offers insurance products, real estate rental management services, andtourism services

Trucking business■ Shida Shiko Co., Ltd.
Manufactures and sells plastic products■ Lymphotec Inc.
Amplified Natural Killer Therapy support, pharmaceutical production

Toyo Seikan Group CSR REPORT 201617