CSR
2014

Toyo Seikan GroupCSR Report 2014

CORPOR ATE SOCIAL RESPONSIBILIT Y REPORT

Publishing department and contact address: CSR Office
Osaki Forest Bldg., 2-18-1 Higashi-Gotanda, Shinagawa-ku, Tokyo 141-8627 Japan
Tel. +81-3-4514-2303

Published in October 2014

Toyo Seikan Group CSR REPORT 2014

Open Up and Be Inspired
Toyo Seikan Group contributes to the solution of social issues
through its business activities.
All employees of the Group are aware of their social responsibility
in daily operations and act accordingly.
Through these efforts, Toyo Seikan Group creates the values of “Open Up and Be Inspired”,
and aims to become a company that contributes to the development of a sustainable society.

Editorial Policy

Table of Contents

Toyo Seikan Group, under the holding company system,
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, pleaseview our website.
http://www.tskg-hd.com/en/csr/

Company Profile.............................................................. 4

Basic Report
Scope of the Report
Domestic and overseas group companies including
Toyo Seikan Group Holdings, Ltd.
Period covered: April 1, 2013 to July 31, 2014
Numerical data: April 1, 2013 to March 31, 2014

Our Businesses............................................................... 5
Toyo Seikan Group Companies...................................... 6
Message from President for Readers..............................8Group News & Topics .................................................... 10
Management................................................................... 12
CSR Management of Toyo Seikan Group
Corporate Governance
Relationship with Stakeholders..................................... 15
Shareholders and Investors
Local Societies
Global Environment

Publication
October 2014
(Next publication scheduled for October 2015)

Reference Guideline

ISO26000 (Guidance on Social Responsibility)
See the following for detailed activities ofour 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 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 Report
http://www.tomatec.co.jp/global/en/environment.html

Toyo Aerosol Industry Co., Ltd.: On Environment
http://www.toyoa.co.jp/environment/

2

Toyo Seikan GroupCSR REPORT 2014

Toyo Seikan GroupCSR REPORT 20143

Company Profile

Our Businesses

Toyo Seikan Group Holdings, Ltd.

Packaging business

Established

June 25, 1917

Representative

Takao Nakai, President and Representative Director

This segment primarily manufactures and sells various packaging containers to
support people’s daily lives such as metal cans, plastic containers, caps, bottles,
paper containers and aerosol products.

Capital11,094,600,000 yen

Head Office

Osaki Forest Bldg., 2-18-1 Higashi-Gotanda, Shinagawa-ku, Tokyo 141-8627 Japan

Number of Employees

392 (consolidated: 18,344) as of March 31, 2014

Steel plate related businessBusiness Segments	Packaging business, Steel plate related business, Functional materials related business,
Real estate related business and other businesses

This segment primarily manufactures and sells various steel plate materials that playa key part in every phase of daily life, such as materials for cans, materials forelectrical and electronic components, materials for automobile and industry
machinery parts, construction materials and materials for household electronic
appliances.

Functional materials related businessThis segment primarily manufactures and sells materials with various functional
properties, such as aluminum substrates for magnetic disks, functional films for
optics, glost, micro-elements fertilizers, pigments and gel coats.

Financial Data (Consolidated)
Net sales
702.8
702.8
702.8
702.8
702.8
702.8

(Billion yen)

732.8
732.8
732.8
732.8
732.8
732.8

Ordinary income(Billion yen)

785.2
785.2
785.2
785.2
785.2
785.2

22.9
22.9
22.9
18.6
18.6
18.6

No. of employees

(Persons)

29.6
29.6
29.6

17,792
17,792
17,79218,00918,00918,00918,344
18,344
18,344

29.6
29.6
29.6

17,792
17,792
17,79218,00918,00918,00918,344
18,344
18,344

8000
8000
8000

300
300
300

7000
7000
7000
8000
8000
8000

300
300
300
250
250
250

6000
6000
6000
7000
7000
7000

22.9
22.9
22.9

5000
5000
5000
6000
6000
6000

18.6
18.6
18.6

2012
2012
2012

2013
2013
2013(FY)
(FY)
(FY)

2011
2011
2011

2012
2012
2012

2013
2013
(FY)
2013(FY)
(FY)

2011
2011
2011

2012
2012
2012

2013
2013
2013(FY)
(FY)
(FY)

2011
2011
2011

2012
2012
2012

2013(FY)
(FY)
2013
(FY)
2013

2011
2011
2011

2012
2012
2012

2013(FY)
(FY)
2013
(FY)
2013

2011
2011
2011

2012
2012
2012

2013(FY)
(FY)
2013
(FY)
2013

Net sales by regionRealestaterelatedbusinessRealReal
estateestaterelatedrelatedbusinessbusiness

Others(U.S.,
etc.)
OthersOthers(U.S.,(U.S.,
etc.)
etc.)
3.2%
3.2%
3.2%
Others(U.S.,
etc.)
OthersOthers(U.S.,(U.S.,
etc.)
etc.)
3.2%
3.2%
3.2%

Net sales by business segment 0.8%
0.8%
0.8%

Functional
Functional
Functional
materials
relatedmaterials
materials
relatedrelatedReal
Real
estateestaterelatedrelatedbusinessbusinessRealestaterelatedbusiness
Otherbusinesses
Other
Other
businesses
businesses
businessbusinessbusiness
0.8%
0.8%
0.8%
1.8%
1.8%
1.8%
Functional
Functional
Functional
4.8%
4.8%
4.8%
materials
materials
relatedrelatedmaterials
related
Other
Other
businesses
businesses
Otherbusinesses
businessbusinessbusiness
1.8%
1.8%
1.8%
4.8%
4.8%
4.8%

Machinery and equipment
business
20000
20000
20000

This segment primarily manufacturesand sells machinery and equipment related
15000
15000
15000
with packaging containers, such as container manufacturing equipment and filling &seaming equipment.
15000
15000
15000

4000
4000
4000
5000
5000
5000

200
200
200
150
150
150

10000
10000
10000

3000
3000
3000
4000
4000
4000

150
150
150
100
100
100

10000
10000
10000

2000
2000
2000
3000
3000
3000

2011
2011
2011

250
250
250
200
200
200

20000
20000
20000

1000
1000
1000
2000
2000
2000

100
100
100
50
50
50

000
1000
1000
1000

50
50
050
00

000

000

5000
5000
Logistics business 5000

This segment engages in motor truck transportation business and warehousing
5000
5000
5000
business mainly for group companies.
000
000

No. of employees by region

Overseas
Overseas
Overseas
26.3%
26.3%
26.3%
Overseas
Overseas
Overseas
26.3%
26.3%
26.3%

Other businesses
In addition, the Group manufactures and sells hard alloys, machinery and appliancesand raw material products for agriculture, sells petroleum products, and engages in
non-life insurance agency business and real estate management business.

New businesses
Japan
Japan
Japan
87.0%
87.0%
87.0%
Japan
Japan
Japan
Asia
(Thailand,
China,
Malaysia,
etc.)
Asia
Asia
(Thailand,(Thailand,
China,
China,
Malaysia,
Malaysia,
etc.)
etc.)
87.0%
87.0%
87.0%
9.9%
9.9%
9.9%
Asia
(Thailand,
China,
Malaysia,
etc.)
Asia
Asia
(Thailand,(Thailand,
China,
China,
Malaysia,
Malaysia,
etc.)
etc.)
9.9%
9.9%
9.9%

4

Toyo Seikan GroupCSR REPORT 2014

By leveraging our core technologies, we are expanding into new business areas
such as IT, energy, life science and nanotechnology.
Steel
plate
Steel
Steel
plate
plate
relatedbusinessrelatedrelatedbusinessbusiness
7.0%
7.0%
7.0%
Steel
Steel
plate
plate
Steel
plate
relatedrelatedbusinessbusinessrelatedbusiness
7.0%
7.0%
7.0%

Packagingbusiness
Packaging
Packagingbusinessbusiness
85.5%
85.5%
85.5%
Packaging
Packagingbusinessbusiness
Packagingbusiness
85.5%
85.5%
85.5%

Japan
Japan
Japan
73.7%
73.7%
73.7%
Japan
Japan
Japan
73.7%
73.7%
73.7%

Toyo Seikan GroupCSR REPORT 20145

Toyo Seikan Group Companies 85 (Japan: 46, Overseas: 39)● Toyo Seikan Group Holdings, Ltd.
Head Office
Corporate R&D Center
Ho Chi Minh City Representative Office (Vietnam)
Istanbul Liaison Office (Turkey)● 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

Manufactures printing plate for printing metal and film

● Fukuoka Packing Co., Ltd.

Manufactures and sells sealant for metal, plastic and glass containers● TM Pack Co., Ltd.

● Can Machinery Holdings, Inc. (USA)Holding Company● Stolle Holdings, Inc. (USA)Holding Company● Stolle Machinery Company, LLC (USA)Develops, manufactures and sells can and lid manufacturing machines
and provides related services● Stolle Europe Ltd. (U.K.)

Develops and sells can and lid manufacturing machines and provides
related services● Stolle Machinery do Brasil Industria e Comercio
Equipamentos Ltda. (Brazil)● Stolle Asia Pacific Co., Ltd (Vietnam)

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

Manufactures and sells beverage PET bottle products● Toyo Food Equipment Co., Ltd.

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

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■ Lymphotec Inc.

Amplified Natural Killer Therapy support, pharmaceutical production● Bangkok Can Manufacturing Co., Ltd. (Thailand)

Manufactures and sells 2-piece steel & aluminum cans and aluminum lids

● 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● Malaysia Packaging Industry Berhad (Malaysia)
Manufactures and sells flexible packaging● Toyo Seikan Guangzhou Co., Ltd. (China)
Sells cans, plastic containers and other packaging● Tokan (Guangzhou) High Technology Containers Co., Ltd.
(China)Manufactures and sells 2-piece steel & aluminum cans

● Toyo Pack (Changshu) Co., Ltd. (China)

Manufactures and sells beverage PET bottles and undertakes
contract filling

Toyo Seikan Group

Manufactures and sells machines and tools for packaging container
manufacturing and for canned & bottled products, and other machines
and tools

Manufactures and sells can and lid manufacturing machines and provides
related services● Toyo Seihan Co., Ltd.

6

● Stolle Tokan Machinery (Shanghai) Co., Ltd. (China)

CSR REPORT 2014

● Toyo Kohan Co., Ltd.

Manufactures and sells tin plates, thin plates, and surface-treatedsteel sheets
Manufactures 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 and manufactures magnetic disk aluminum substrates

As of June 30, 2014 ● : Affiliates■ Kohan Kogyo Korea Co., Ltd. (Korea)

Manufactures and sells automatic binding devices and hard alloys,
and provides related services■ 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)● 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● Toyo Glass Mold (Thailand) Co., Ltd.
Manufactures and sells molds for glass products● Tokan Kogyo Co., Ltd.

Manufactures and sells paper cups and general plastic products● Nippon Tokan Package Co., Ltd.

Manufactures and sells cardboard products and paperware● Toyo Unicon Co., Ltd.

Manufactures and sells corrugated plastic products● Tokan Kosan Co., Ltd.

Manufactures and sells films for agriculture● KY Technology Co., Ltd.

● Tokan Takayama Co., Ltd.

■ TOYO PAX Co., Ltd.

● Tokan Logitech Co., Ltd.

Manufactures and sells building materials and logistics equipment
Manufactures and sells packing materials; cutting, verification andpacking 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,and warehousing■ TOYO PARTNER Co., Ltd.

Services related to employee welfare facilities and others,
staffing business, etc.

● TOYO-MEMORY TECHNOLOGY SDN.BHD.
(Malaysia)
Manufactures and sells aluminum substrates for magnetic disks■ TOYO KOHAN SHANGHAI CO., LTD. (China)

Sells steel sheet related products, hard materials, and automatic binders
and provides 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, and stainlesssteel and any and all business activities ancillary to the above■ TOYO KOHAN Jiangsu Co., Ltd. (China)

Manufactures and sells paper container and lid products
Trucking and warehousing● Shosando Co., Ltd.

Manufactures and sells paper cups, pasteboard and spoons● DAC Co., Ltd.

Plans and sells paper and plastic container products● Sunnap Co., Ltd.

Sells paper cups, plates and napkins■ Takeuchi Hi-Pack Co., Ltd.

Manufactures and sells cardboard products and paperware■ SENRI TRANSPORTATION Inc.

● 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 plastic caps for beverage PET bottles■ NCC Europe GmbH (Germany)

Manufactures and sells caps for beverages● 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 andglass filler for synthetic marble● Sun Dragon Development Limited (China)

Holding company of TOMATEC (XIAMEN) FINE MATERIAL CO., LTD.
(China)● Sunny Star Development Limited (China)

Sole export agent of TOMATEC (XIAMEN) FINE MATERIAL CO., LTD.

● TOMATEC America, Inc. (USA)

Imports and sells inorganic pigments, frits, etc.

● PT. TOMATEC INDONESIA (Indonesia)
Manufactures and sells frits and pigments● 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 steel materials for can making● Tokan Kyoei Kaisha, Ltd.

Offers insurance products, real estate rental management services,and tourism services

Trucking business■ Shida Shiko Co., Ltd.

Manufactures and sells corrugated plastic products● Tokan (Changshu) High Technology Containers Co., Ltd.
(China)Manufactures and sells plastic products● TAIYO PLASTIC CORPORATION OF THE PHILIPPINES(Philippines)
Manufactures and sells plastic products● T.K.G. CORPORATION (Philippines)
Land leasing

Manufactures laminated steel sheet for cans

Toyo Seikan GroupCSR REPORT 20147

Message from President for Readers

Mission to be inherited
In 2013 Toyo Seikan Group transferred to a holding
company system and on June 26, 2014, I, Takao Nakai
was appointed President succeeding former President
Shunji Kaneko.
I believe Toyo Seikan has respectable corporate missionthat has been passed down since its foundation, that is,“the company’s goal is to contribute to the happinessof mankind through packaging technologies”. EachGroup company has its outstanding businessphilosophy, but I believe eternal pursuit of this missionis where essential CSR of the Group starts. Assuming
this mission, I will strive to maximize our corporate value
together with our stakeholders.

Becoming a globally reliable company
in various business areas
Japan’s economy in 2013 saw positive signs ofrecovery in the financial economy and export industry
due to continued higher stock prices and yen’s
depreciation. In addition, we saw gradual economic
recovery on the back of successful bid for the 2020
Olympics in Tokyo. On the other hand, the businessconditions of the markets in which the Group operates
are extremely harsh because of a rise in energy and raw
material costs and intensified competition in Japan andabroad.
In April 2013, we formulated “Growing 2022”, theGroup’s mid-to-long term vision for growth, and set“Growing into a global company that develops
peripheral businesses centered on packaging
operations” as our future vision for the next decade.
The third Medium-term Management Plan (FY2013-FY2015) started for such achievement.
In FY2013, we could achieve the first year target under
the Group’s third Medium-term Management Plan due
to factors including robust sales at overseas companies
and solid sales of functional materials such as aluminum

8

Toyo Seikan GroupCSR REPORT 2014

substrates for magnetic disks. In the packaging
business, our operating companies have developed andsupplied highly value-added products such as PET
bottles with superior gas barrier function, easy-to-open
corned beef containers and caps, glass bottles withsuperior printing property, thermal insulation embossed
paper cups, and “DUAL”, an aerosol container for hairdye. As part of active investment strategies, we havealso advanced into Europe for the first time, following
ASEAN, China, and the U.S., and paved the way forincreasing the overseas sales ratio to 15% in 2015, thethird year of the Plan.
For new businesses focused on life science,“GENOGATE”, our genetic testing system to detect
fungi was launched to the market and is used byhygiene management service companies.
While accelerating collaboration across the Group andimproving the profitability in existing businesses, we will
strategically invest even more in overseas businesses
and new businesses with high growth potential.
In 2013, we formulated the “Group CSR Basic Policy”
together with the Group’s third “Medium-termManagement Plan”. Under the Policy, a CSR promotion
framework at each Group company was identified andsome activities were implemented to raise employees’
CSR awareness. We aim to establish a globally trusted
Toyo Seikan Group brand while building a solid CSR
promotion framework for the Group.

Solving social issues throughbusiness activities
Toyo Seikan Group contributed to improve people’s
daily life by sharing the role of social infrastructure to
support their living through its products, systems andservices. As part of such efforts, we pursued
businesses to tackle social issues such as implementing
recycling campaigns against can littering issue in the
1970s, and developing/launching our proprietary andecological “TULC” cans in 1990s which do not use

water in the can forming process. “TULC” continues to
evolve further. In recent years, we started “PET bottle to
PET bottle” business for recycling. There are many
more global social issues we must address for humanhappiness, such as ensuring environmental
sustainability, preventing human rights violations,
eradicating global hunger and preventing corruption.
Toyo Seikan Group will solve social issues through its
business activities leveraging our accumulated
technology and expertise, and continue to grow withthe society.
We ask for the continued support and guidance of all
our stakeholders.

Takao Nakai
President and Representative Director
Toyo Seikan Group Holdings, Ltd.

Toyo Seikan GroupCSR REPORT 20149

Group News & Topics

The companies of the Toyo Seikan Group conduct CSR activities utilizing
their business and regional characteristics.

Expanding Toyo Seikan Group’s brand globally

FY2013 Award Winning Products of Toyo Seikan GroupIn 2014, Toyo Seikan Group established its first production base in Europe and expanding its business area fromASEAN and China into Europe and U.S.

The containers and packaging products developed by the Toyo Seikan Group companies have received highevaluations both inside and outside Japan.
Among the award winning products in FY2013, we find many products with the aim of improving ease of use,or further reducing the environmental burden.
A year has passed since our transition to the holding company system. We will promote collaboration among Group
companies to achieve higher synergies and continue developing packaging containers that meet customer needs morethan ever.

NCC Europe GmbH (Germany)
On January 15, 2014, we established ajoint venture to manufacture and sell
beverage caps in Freistaat Thüringen,Germany.
We will locally produce Maxi-P bottle
caps in Europe where bottled beverages
are the main stream.
Maxi-P

Construction of a new plant for Tosyalı Toyo SteelCO. INC. (Turkey)
The Group decided to construct a manufacturing plant forsurface-treated steel sheet in Turkey with strong economic
growth, by forming a joint venture between Tosyalı Holding
and Toyo Kohan. The plant is scheduled for operation in
2016. Toyo Kohan has its main production base in
Kudamatsu City, Yamaguchi Prefecture, and will further
promote overseas businesses leveraging the new plant inTurkey as a foothold for globally expanding the steel plate
related business.

Left: President Tosyalı of Tosyalı Holding
Right: Chairman Tanaka of Toyo Kohan

Establishment of Toyo & Deutsche Aerosol GmbH
(Germany)
In April 2014, a joint venture to contract fill aerosol
products was established in the suburbs of Munich,Germany.
The company will manufacture and sell DUAL, a new
double-structured aerosol container that can discharge
two contents simultaneously with one push for theEurope and U.S. markets where aerosol products are
consumed about ten times more than in Japan.

PT Indonesia Caps and Closures (Indonesia)
In August 2014, we establishedthis joint venture to manufactureand sell plastic caps in Bekasi,West Java, Indonesia.
We aim to contribute to thedevelopment of the beverage
market in Indonesia whose market
size is expanding rapidly in recent
years.

Toyo Seikan GroupCSR REPORT 2014

● World Star Contest - Worldstar Award● Japan Packaging Contest- Japan Star Prize● Kinoshita Award (Improvement and Rationalization Category)“Corned beef in long shelf life plastic cup”
Recipient: Toyo Seikan Co., Ltd.
Joint award with Meidi-Ya Co., Ltd and Forica Foods Co., Ltd.
The award winning product is a container that emulated the form of traditional canned corned beef, but comes with newfeatures. It utilizes a film lid that can be opened safely and easily without a can opener. It can also be conveniently heated in
microwave ovens. It is made of a material with low oxygen permeability and has a four-layer structure to provide high lightshielding property, enabling the freshness date of three years similar to a can product.
Toyo Seikan Group Holdings, Ltd. which designed the cup, also received the Award for Good Design.

Japan packaging contest award winning products

Products awarded in overseas competitions

Accessible Design Packaging Award
Easy-to-squeeze bottle
Tokan Kogyo(Joint award with Kewpie Corporation)
The opening and shoulder
parts were made thinnerusing a concave shoulder
shape that is easy tosqueeze to the last.

PARIS AEROSOL & DISPENSING
8th AWARD (France)
DUAL - Toyo Aerosol Industry
The first aerosol system in theworld that can discharge twodifferent contents at the sametime.

Award trophy

Full view of the plant

DUAL

New plant of PT. TOMATEC INDONESIA (Indonesia)
In March 2014, a subsidiary of Tokan Material Technology
completed its new plant in East Java, Indonesia.
It manufactures and sells frit used as the raw material forenameled products and pigments for plastic and paint.

Full view of the plant

10*See our website to view the award winning products.

Beverage Packing Award
Partition formed witha single touch
Nippon Tokan Package(Joint award with S-surf Co., Ltd.)We developed a cardboard
partition that can be easily set
up to hold five bottles.

DUAL

iF Design Award (Germany)
YONEJU CONFITURE - Toyo Seikan Group Holdings
A glass container by Toyo Glassawarded for its stylish nestable
design.

Description of Awards[Japan Packaging Contest] Sponsored by the Japan Packaging Institute, recognizing excellent product lines from design to logistics[Worldstar Awards]	Sponsored by the World Packaging Organization, Exhibition qualification in the World Star contest is given to the prize winning product in theJapan Packaging Contest[Kinoshita Award]	S ponsored by the Japan Packaging Institute, recognizing (1) R&D of packaging, (2) improvement and rationalization of packaging and (3)noteworthy accomplishment in creating new packaging fields[Good Design Award] Sponsored by the Japan Institute of Design Promotion, recognizing formulations or activities by humans such as industrial products andbusiness models regardless of whether tangible or intangible[PARIS AEROSOL & DISPENSING 8th AWARD]	Sponsored by ORIEX COMMUNICATION and an award for innovation in aerosol technology and development ofdischarge system packaging[iF Design Award]	Sponsored by Industry Forum Design Hannover (iF), one of the world-class design awards Each year selects an excellent industrial producttargeting the whole world

Toyo Seikan GroupCSR REPORT 201411

Management

Management

CSR Management of Toyo Seikan GroupToyo Seikan Group has contributed to the society through its business operations focused on packaging.
Under the Group’s CSR management vision of “Continue contributing to the happiness and prosperity of mankind
through faithful and fair business activities”, we will establish a globally trusted Toyo Seikan Group brand while facingwith all stakeholders sincerely.

Management vision of Toyo Seikan GroupWe target becoming a corporate group of packaging professionals contributing
to the happiness and prosperity of mankind through “packaging technology”
1.	We are committed to pursue infinite possibilities of packaging containers thatact as intermediaries between production and consumption
2.	We establish a group of solution companies focusing more on the environment
over the cycle of “production, filling & packaging, distribution, consumption
and collection & recycling”
3.	We strive to become a technology-driven company unrivaled by other companies

Our basic philosophy
In 1933, our founder Mr. Tatsunosuke Takasaki,
documented the founding principles as basic philosophy
in the handbook named “The Mission of Toyo Seikan”,
and distributed it to shareholders, employees, andindustry participants. Since then, the Toyo Seikan Grouphas fulfilled its mission based on such basic philosophy.
The Group’s essential CSR spirit is found there.

1.	Our mission is to contribute to the happiness of people.
2.	Profit is a byproduct of our business efforts and not our maingoal.
3.	W e w i l l w o r k w i t h a s e n s e o f s e r v i c e , p r o m o t e s u c hcommitment in the company and strive to ensure theprosperity of our business partners as well as the company.

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

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

Toyo Seikan Group vision for medium-to-long term growth

Customers

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

Business partners

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

We formulated “Growing 2022”, the vision for growth in the next 10 years and started the third “Medium-term Management
Plan” for FY2013- FY2015 towards its achievement.

Shareholders andInvestors

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 with local
communities.

Global environment

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

2nd Medium-termManagement Plan
(FY2010-FY2012)

3rd Medium-termManagement Plan
(FY2013-FY2015)

Future Vision of
Toyo Seikan Group(FY2022)

Strengthen ties within theGroup based on “people”
and “technology”

Achieve dramatic growthof the Group under theholding company system

Grow into a global company thatdevelops peripheral businesses centeredon packaging operations• Secure stable profits from existing
domestic businesses• Strengthen profitability of existing
domestic businesses• Strategically shift growth focus tooverseas businesses and new
businesses• Strategic investment by addressing thespecifics of overseas markets

Packaging related businessGroup CSR Promotion Framework
Group CSR Promotion Committee was established to supervise overall CSR activities of Toyo Seikan Group.
The Committee is chaired by the President of Toyo Seikan Group Holdings, Ltd. and comprises of their senior executives
and the Presidents of all business companies as committee members.
Toyo Seikan Group Holdings, Ltd.

Board of Directors
President

Functional materials related business• Promote commercialization of new
businesses

Board of Corporate Auditors

Steel plate related businessLife scienceNewbusinesses

Management Executive Meeting
Management Strategy Meeting

Electrical/electronics, IT and energy
Environment

Group CSR Promotion Committee

Packaging/containers

Group Environmental Committee

2011 Thailand
Floods12Group Compliance Promotion Committee

Shifted to a holding
company system

The Great
East Japan
Earthquake

Toyo Seikan Group➡

CSR REPORT 2014

Enhance the Group’s corporate value
under the holding company system

Toyo Seikan

Toyo Kohan

Toyo Glass

Tokan Kogyo

NipponClosures

Tokan Material
Technology

Toyo Seikan GroupToyo Aerosol
Industry

CSR REPORT 201413

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.

Concept of corporate governanceToyo Seikan Group Holdings, Ltd., based on thefundamental spirit since its foundation, places theenhancement of corporate governance as management
priority to improve the corporate value and continue newdevelopment and progress further while contributing tosociety through its business activities.

Corporate governance system
The Board of Directors of Toyo Seikan consists of eight
directors, including three outside directors. Board of
Directors generally meets once a month, holds extraordinary
meetings when necessary, and make decisions onimportant management issues. The term of office for
Directors is one year in order to clarify their management
responsibilities, and to build a flexible management systemthat can immediately respond to changes in the
management environment.
Furthermore, we introduced corporate auditor system andeach Corporate Auditor supervises the business duties
executed by the Directors and oversees the Company’s
management. The Board of Corporate Auditors consists offive Corporate Auditors, including three Outside Corporate
Auditors. Board of Corporate Auditors generally meets oncea month, and holds extraordinary meetings when necessary.

Strategic planning and execution by
the Management Strategy Meetings
The Company has implemented the Executive Officer/
Operating Officer system with the aim of clearly
distinguishing the management’s decision-making andsupervisory functions from those of the business operations.
To appropriately and promptly establish basic management
guidelines, determine various measures to be taken andaggressively promote management activities, “Management
Strategy Meeting” is held once a month which comprises
full-time Directors, CFO, CTO, Senior Executive Officers andExecutive Officers. Furthermore, “Management Executive
Meeting” is in principle, held twice a month and attended byfull-time Directors, CFO, CTO, Senior Executive Officers, thePresidents of core business operating companies and thePresidents of quasi-core business operating companies.

Internal audit
To ensure that business activity fully complies with laws andregulations and to improve management efficiency, theinternal Audit Office is placed under the direct supervision of
the President as an internal auditing department. We aim to
improve the internal control function by periodically auditing
the development and management of the internal control
system at all Toyo Seikan Group companies.

Corporate governance system

Election and Dismissal

Audit

Board of Corporate Auditors

Group Compliance
Promotion Committee

Accounting Auditor

Group CSR Promotion
Committee

Accounting
Audit

Management Executive Meeting
Management Strategy Meeting

By improving business performance of the Toyo SeikanGroup, the Company has been continuing its efforts tosteadily increase returns to shareholders and share profits.
The Company’s policy on returns to shareholders or
distribution of earnings to shareholders is as follows:(1)	P ay dividends to its shareholders in a stable andsustainable manner, based on a consolidated payout
ratio of 20% or higher(2)	Apply retained earnings, in a positive and flexible manner,
to growing areas such as overseas business and new
business from the medium and long-term perspectives(3)	Flexibly purchase treasury shares in response to stock
market conditions and financial circumstances.

Disclosure Policy
Basic Policy
Toyo Seikan Group Holdings, Ltd. (hereafter,
the Company) fully understands that the timely andappropriate disclosure of corporate information toshareholders and investors forms the basis of a soundsecurities market. The Company will also issue
corporate information in a timely, fair and accurate
manner through active communications with its
shareholders and investors, with the aim of gaining
their confidence and appropriate evaluation of
the Company.

Dividend paymentsー● Consolidated dividend payout ratio■ Annual dividends
(yen)

(%)

16

IR activities

30.0
21.6 %

20.0

8
4◦Individual IR Meetings◦Participation in conferences held bysecurities companies◦Publication of Investor’s Guide

Shareholders◦Publication of Reports (Mid-term and Year-end)

16
12(As of March 31, 2014)

No. of shares authorized to be issued: 450,000,000
8No. of shares issued: 217,775,067
No. of shares per unit: 100
No. of shareholders: 6,7274
Listed on the first section of the Tokyo Stock Exchange(Stock code: 5901)
0
Shareholder composition
Treasury shares 6.8%

Individuals and others 8.7%

Securities companies
3.8%

Government,
local public bodies
0.0%

Financial institutions
34.9%

IR conference

CSR REPORT 2014

(FY)

Overseas
corporations, etc.
24.5%

Respective Divisions

Toyo Seikan Group

10.0

0

2011
2012
2013
*Consolidated dividend payout ratio is not recorded due to posting
consolidated net loss in FY2011

Operating Officers

14

14 yen0

SharesOverseas Institutional
Investors

12 yen

10 yenIR activities

Group Environment
Committee

Collaboration

20.6 %

12

The Company actively discloses corporate information informs such as releases containing information on financial
position and results.
The Company also holds financial results briefings for themass media and analysts as well as one-on-one meetings
with domestic and overseas institutional investors as part ofits efforts to gain their understanding of the Group’s
corporate value.

Mass Media◦Financial Settlements Briefings
Analysts(Mid-term and Year-end)
Domestic Institutional◦Individual IR Meetings
Investors

Board of Directors
Representative Directors

Toyo Seikan Group Holdings, Ltd. strives to gain confidence
from shareholders and investors by disclosing timely andappropriate information based on its Disclosure Policy.

Target group

Election and Dismissal

Internal Audit Office

Shareholder return policy

Main Activities in FY2013

General Meeting of Shareholders
Election and Dismissal

Information disclosure policy

Other domestic corporations
21.3%

Toyo Seikan GroupCSR REPORT 201415

Relationship with Stakeholders

Relationship with Stakeholders

Local Societies
We will co-exist harmoniously with local societies and promote interaction with local
communities.
The entire Toyo Seikan Group interacts with everyone in local communities as a member of those communities.
Leveraging the features of group companies, we will start CSR activities from what we can do.

Participation in exhibitions

Recycle Design ForumToyo Seikan Group participated in Japan’s largest
environmental exhibition “Eco-Products 2013” held from
December 12 to 14, 2013. We ran a booth showing ecoproducts made by group companies, explained about theforming process of containers and their recycling process
after use, and held a craft workshop using packaging
containers. Approximately 10,000 people visited the booth.

Toyo Glass Co., Ltd. participated in the “Recycle Design
Forum 2013” which was held at the Yokohama City
Osanbashi Hall on October 27, 2013. The event attracted
many families because illustrated diaries of elementary
school students on environmental issues were displayed, in
addition to booths of companies and other organizations.
Toyo Glass ran a booth showing the “3 Rs” of glass bottles
including lightweight and ecological bottles. It was a good
opportunity for parents and their children to understandToyo Glass’s environmental initiatives for glass bottles.

Cooperating in learning activities at a
nearby school
Toyo Seikan Headquarter cooperated in a class called “Let’sgo and discover what you can see from a high place” which
was part of social studies program for third-year students of
Hino Gakuen, a nearby unified elementary and junior highschool in Shinagawa Ward. Students were invited to the15th floor conference room of Osaki Forest Building.

Paper cup collection activities
Tokan Kogyo Co., Ltd. conducts paper cup collection
activities at venues, such as event halls and stadiums,
where paper cups are used. The collected paper cups arerecycled as toilet paper.

Plant tour

Clean-up activities in local areas

Komaki Plant of Nippon Closures Co., Ltd. held a plant tour
on Ma y 23, 2013. I t wa s h e ld a s pa rt of e du c a t ion a lactivities by the Komaki City senior citizens association.
Over 20 people participated in the event to visit the plant/
facility and were given explanation on the products.

All Toyo Seikan Group’s offices and plants carry out cleanup activities in the local areas surrounding their offices andplants. From time to time, they contribute to regional cleanup in cooperation with other corporations and local
residents.

Initiatives by overseas Group
companies

Osaki Forest Bldg., Local Community Environmental Clean-up Activities(Toyo Seikan Group Holdings, Toyo Seikan, Toyo Glass, Tokan Kogyo,
Nippon Closures, Nippon Tokan Package, Honshu Seikan, Toyo Aerosol
Industry, Tokan Shoji, Tokan Kyoei)

Supporting the Prostheses Foundation of Thailand
Bangkok Can Manufacturing (BCM) carries out volunteer
activities in support of the Prostheses Foundation ofThailand. They collect discarded aluminum (tabs, caps, etc.)
and donate the aluminum to the Foundation to manufacture
prostheses. Acting as an aluminum collection center, BCM
receives aluminum from various organizations, including
corporations and schools. In 2013, a total of 30,348 kg ofaluminum was collected (a single prosthesis requires
approximately 1 kg of aluminum).
In 2012, BCM’s continuous volunteer activities were
honored with an award from Princess Sirindhorn of theKingdom of Thailand, who acts as the representative of theFoundation.

Toyo Seikan
Hiroshima Plant
Nuta River Clean Campaign

Toyo Kohan
Kudamatsu Plant
Clean-up activities inthe surrounding area

Kudamatsu Plant Open Day
Toyo Kohan Co., Ltd. Kudamatsu Plant held an OpenDay on October 19, 2013. Approximately 3,000 people,
including people in the neighboring areas and employees’
families, visited the plant. They enjoyed various activities
such as a plant tour, the product showroom, a science
workshop, a children’s playground, and vendor stalls.

Members of the Bicycle
Association, who delivered
1,049 kg of aluminum ina single day

Tokan Material
Technology Co., Ltd.
Headquarters,
Osaka Plant
Yodogawa riverclean-up activities

President Yamada
receiving the award from
Princess Sirindhorn

16

Toyo Seikan GroupCSR REPORT 2014

Toyo Seikan GroupCSR REPORT 201417

Relationship with Stakeholders

Relationship with Stakeholders

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

Environmental Promotion System
Toyo Seikan Group Environmental Policies
Toyo Seikan Group established its Group Environmental
Policies in 2002. All Group companies conduct theirbusinesses in accordance with its basic philosophy.

Basic Philosophy
All Toyo Seikan Group companies are keenly
aware that preservation of the global environmentand qualitative improvement of the global
environment are the most important issues facing
all humanity. We strive to ensure that all aspects ofour business are environmentally friendly andsustainable, and contribute to the improvement of
human life and culture.

Eco Action Plan 2015
Toyo Seikan Group companies focus on achieving their targets based on the Eco Action Plan which sets forth specificenvironmental targets and mid-term action plans for achieving the Group’s Environmental Vision.
Eco Action Plan 2015
Since 2006, Toyo Seikan Group has formulated its
Eco Action Plan, which lists mid-term goals for the next
five years.
Under the Eco Action Plan 2015 established in FY2011,group-wide efforts are implemented to realize environmental
management by expanding the scope to cover all domestic
Group companies.

FY2013 activity results under Eco Action Plan 2015
Environmental
VisionSpecific items and environmental targets
Reduce primary unit of energy consumption

Group Environmental Vision
Toyo Seikan Group established the Group Environmental Vision comprising six key priorities in May 2004 to facilitate
environmental management. All Group companies strive for “harmony between packaging and the global environment” in theirprocurement, manufacturing, logistics, consumption, disposal, and recycling activities as well as in the entire supply chain. We
will promote environmental management through the participation of all our employees.

I.	Continuously create eco-friendly products
II.	Promote reduction of environmental impact resulting
from production activities
III.	Promote green procurement, distribution and sales
IV.	Promote resource recycling
V.	Promote environmental communications
VI.	Promote environmental management and construct aninformation system for environmental management

Resource
recycling

Promoteenvironmental
management
and construct
an information systemfor environmental
management

Environmental
communications

Promote resource
recycling

Toyo Seikan GroupCSR REPORT 2014

FY2015
Target9.3%
reduction

Achieved by promoting energysaving activities

★★★

8.5%
reduction★

20%
reduction

4%
reduction

Reduce primary unit of material input

2.5%
reduction

4.6%
reduction

Achieved through lightweighting,
etc.

★★★

3.3%
reduction(1)	Reduce the quantity oflandfill waste

47%
reduction

19%
reduction

Unachieved due to higher
production of various materials
although wastes were thoroughly
separated and recycling method
was reviewed★

48%
reduction(2)	Increase the number ofzero emission sites(recycling rate of 99%
or higher)

85 sites

126 sites

Achieved by promoting recycling★★★

133 sites(1)	Reduce the primary unitof emissions andtransportation for thosechemicals designated in
the PRTR Law

10%
reduction

6%
increase

Emissions and travel increased
due to higher production ofvarious materials★

12%
reduction(2)	Reduce the quantityof emissions andtransportation of
toluene, xylene andother organic solvents

13%
reduction2%
increase

Emissions and travel increased
due to higher production despite
shifting further to water-based,
solventless paints and adhesives★

16%
reduction

Reduce the primary unit for CO2 emissions in
the distribution process7%
reduction

10%
reduction

Achieved due to more efficientassignment of vehicles★★★

9%
reduction

We aimed to achieve better quality
recycling by strictly separating
wastes and reviewing the recycling
methods, however, this wasunachieved due to increased
production of various materials.

★★

94%

Increase the material recycling rate

94%

93%

Assessment index: ★★★ Achieved ★★ Partially unachieved ★ Initiative insufficient 
Target: All sites of domestic Group companies

18

Assessment

19%
reduction

Continuously
createeco-friendly
products

Promote green
procurement,
distribution and
sales

6.7%
reduction

Results

Reduce CO2 emissions(vs. FY1990)

Promote reductionof environmental
Promote waste
impact resulting
reductionfrom businessandactivities
zero emissions

Reduceenvironmental
impactin production
activities

FY2013
TargetImplemented renewal for
restructuringof production system, plannedhigh efficiency equipments.
But target unachieved due toincreases in production andincreases in power CO2 emission
unit.

Chemicalcompounds
management

Promote green
procurement,
distribution
and sales

FY2013 Activity Report
The results of FY2013 activities are shown in the tablebelow.
Four of the nine items were achieved while five remainunachieved.

Base year: FY2009

Toyo Seikan GroupCSR REPORT 201419