CSR Report 2015

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

Published in December 2015

Toyo Seikan Group CSR REPORT 2015

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, please
visit 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, 2014 to July 31, 2015
Numerical data: April 1, 2014 to March 31, 2015

Our Businesses............................................................... 5
Toyo Seikan Group Companies..................................... 6
Message from the President........................................... 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
December 2015
(Next publication scheduled for December 2016)

Reference Guideline

ISO26000 (Guidance on Social Responsibility)
Refer to the following for detailed activities ofour operating companies.
Toyo Seikan Co., Ltd.: Sustainability Report
http://www.toyo-seikan.co.jp/e/eco/Open Up and Be Inspired

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

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 creating a sustainable society.

2

Toyo Seikan GroupCSR REPORT 2015

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

Cover Design
The cover page of this report was created by the design teamof Toyo Seikan Group Holdings, Ltd. who designs the graphics(printing) and products (shape) of packaging containers andundertakes PR activities of the Group including advertisement.

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

Design Concept
Under the concept of “packaging and nurturing”, the design
expresses tender and transparent silk. This silk has color
gradation effect which recalls the logo of Toyo Seikan Group.
Its harmony of colors signifies the harmony of groupcompanies.
Toyo Seikan Group will move forward in harmony with all
stakeholders.

Toyo Seikan GroupCSR REPORT 20153

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, Japan

Number of Employees

390 (consolidated: 18,446) as of March 31, 2015

Business Segments	Packaging business, Steel plate related business, Functional materials related business,
Real estate related business and Other businesses• Machinery and equipment
Manufacturing and sales of machinery and equipment related with packaging
containers, such as container manufacturing equipment and filling & seaming
equipment.

• Logistics
Motor truck transportation and warehousing mainly for group companies.

Financial Data (Consolidated)
Net sales
732.7
732.7
732.7
732.7
732.7
732.7

(Billion yen)

785.2
785.2
785.2

784.3
784.3
784.3

785.2
785.2
785.2

784.3
784.3
784.3

Ordinary income(Billion yen)

29.6
29.6
29.6
29.6
29.6
29.6

22.8
22.8
22.8

23.8
23.8
23.8

No. of employees

(Persons)

18,00918,00918,00918,344
18,344
18,344

18,446
18,446
18,44618,00918,00918,00918,344
18,344
18,344

18,446
18,446
18,446

23.8
23.8
23.8

22.8
22.8
22.8

8000
8000
8000

Steel plate
related business
300
300
300
250
250
250

6000
6000
6000
7000
7000
7000

15000
15000
This segment primarily manufactures and sells various 15000
steelplate materials that play
250
250
250
200
200
200
a key part in every phase of daily life, such as materials for cans, materials for
15000
15000
15000
electrical and electronic components, materials forautomotive and industry
200
200
200
150
150
150
10000
10000
10000
machinery parts, construction materials and materials
for household electricalappliances.

5000
5000
5000
6000
6000
6000

3000
3000
3000
4000
4000
4000
2000
2000
2000
3000
3000
3000

2012
2012
2012

2013
2013
2013
2013
2013
2013

Net sales by region

2014
2014
2014(FY)
(FY)
(FY)
2014
(FY)
2014(FY)(FY)
2014

OthersOthersOthers(U.S.,(U.S.,(U.S.,
etc.)
etc.)
etc.)
5.6%
5.6%
5.6%
Others(U.S.,
etc.)
Others(U.S.,
etc.)
Others(U.S.,
etc.)
5.6%
5.6%
5.6%

Japan
Japan
Japan
81.5%
81.5%
81.5%
Japan
Japan
Japan
Asia
Asia
Asia
(Thailand,(Thailand,(Thailand,
China,
China,
China,
Malaysia,
Malaysia,
Malaysia,
etc.)
etc.)
etc.)
81.5%
81.5%
81.5%
12.8%
12.8%
12.8%
Asia
(Thailand,
China,
Malaysia,
etc.)
Asia
(Thailand,
China,
Malaysia,
etc.)
Asia
(Thailand,
China,
Malaysia,
etc.)
12.8%
12.8%
12.8%

4

Toyo Seikan GroupCSR REPORT 2015

2012
2012
2012
2012
2012
2012

2013
2013
2013
2013
2013
2013

2014
2014
(FY)
(FY)
2014(FY)2014(FY)2014(FY)(FY)
2014

Functional
Functional
Functional

Real
Real
Real
estateestateestaterelatedrelatedrelatedrelatedrelatedrelated
Functional
Functional
Functional
businessbusinessbusinessmaterials
materials
materials
5.0%
5.0%
5.0%
relatedrelatedrelatedbusinessbusinessbusiness
5.0%
5.0%
5.0%

Real
Real
estateestaterelatedrelatedReal
estaterelated
Other
Other
Other
businesses
businesses
businesses
businessbusiness
0.8%
0.8%
business
0.8%
1.9%
1.9%
1.9%
Other
Other
businesses
businesses
Otherbusinesses
1.9%
1.9%
1.9%

Net
sales by business segment
materials
materials
materials
businessbusinessbusiness
0.8%
0.8%
0.8%

Steel
Steel
Steel
plate
plate
plate
relatedrelatedrelatedbusinessbusinessbusiness
7.5%
7.5%
7.5%
Steel
Steel
Steel
plate
plate
plate
relatedrelatedrelatedbusinessbusinessbusiness
7.5%
7.5%
7.5%

Packaging
Packaging
Packagingbusinessbusinessbusiness
84.8%
84.8%
84.8%
Packaging
Packaging
Packagingbusinessbusinessbusiness
84.8%
84.8%
84.8%

2012
2012
2012
2012
2012
2012

2013
2013
2013
2013
2013
2013

2014
2014
2014(FY)
(FY)
(FY)
2014
(FY)
2014(FY)
(FY)
2014

20000
20000
20000

7000
7000
7000
8000
8000
8000

4000
4000
4000
5000
5000
5000

2012
2012
2012

300
300
300

1000
1000
1000
2000
2000
2000
000
1000
1000
1000
000

150
150
150
100
100
100

20000
20000
20000

10000
10000
10000

100
100
100
50
50
50
Functional
materials related business

5000
5000
5000
5000
5000
5000

This segment primarily manufactures and sells materials with various functional
50
50
050
00
000
properties, such as aluminum substrates for magnetic disks, functional films for
optics, glost, trace-element
fertilizer, pigments and gel coats.
000
000

No. of employees by region

Overseas
Overseas
Overseas
26.9%
26.9%
26.9%
Overseas
Overseas
Overseas
26.9%
26.9%
26.9%

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.

Japan
Japan
Japan
73.1%
73.1%
73.1%
Japan
Japan
Japan
73.1%
73.1%
73.1%

New businesses
By leveraging our core technologies, we are expanding into new business areas
such as IT, energy, life science and nanotechnology.

Toyo Seikan GroupCSR REPORT 20155

Toyo Seikan Group Companies : 87 (Japan 45, Overseas 42)● Toyo Seikan Group Holdings, Ltd.
Head Office
Corporate R&D Center
Istanbul Liaison Office (Turkey)● STOLLE MACHINERY (SHANGHAI) CO., LTD (China)■ TOYO KOHAN Jiangsu Co., Ltd. (China)● Can Machinery Holdings, Inc. (USA)■ Kohan Kogyo Korea Co., Ltd. (Korea)● Stolle Holdings, Inc. (USA)■ Tosyalı Toyo Steel CO. INC. (Turkey)

Sells can and lid manufacturing machines and provides related services
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 plate 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 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● 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.

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)
Manufactures and sells can and lid manufacturing machines and provides
related services● 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 and lids

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

● 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

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
and tools

6

Toyo Seikan GroupCSR REPORT 2015

● 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● 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■ PT Indonesia Caps and Closures (Indonesia)
Manufactures and sells plastic closures● 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● Nippon Tokan Package Co., Ltd.

● Sunny Star Development Limited (China)● Kohan Kogyo Co., Ltd.

● Toyo Unicon Co., Ltd.

● TOMATEC America, Inc. (USA)● Tokan Kosan Co., Ltd.

● PT. TOMATEC INDONESIA (Indonesia)

Sells steel sheets and their processed products
Manufactures and sells steel bands, automatic binders,
hard alloys and manufactures magnetic disk aluminum substrates● KY Technology Co., Ltd.

Manufactures and sells building materials■ TOYO PAX Co., Ltd.

Manufactures and sells packing materials; cutting, verification andpacking work

Manufactures and sells paper and plastic packaging products
Manufactures and sells cardboard products and paperware
Manufactures and sells corrugated plastic products
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

Holding company of TOMATEC (XIAMEN) FINE MATERIAL CO., LTD.
Sole export agent of TOMATEC (XIAMEN) FINE MATERIAL CO., LTD.
Imports and sells inorganic pigments, frits, etc.
Manufactures and sells frits and pigments● Toyo Aerosol Industry Co., Ltd.

Contract manufacturing and sales of aerosol and general aseptic
filling products■ Kyodo Kaiun Co., Ltd.

● Shosando Co., Ltd.

● Toyo Filling International Co., Ltd. (Thailand)■ Kudamatsu Unyu Co., Ltd.

● Sunnap Co., Ltd.

■ Toyo & Deutsche Aerosol GmbH (Germany)

Marine transport and harbor transport services, custom agent services
Land transport, harbor transport services, custom agent services,and warehousing■ TOYO PARTNER Co., Ltd.

Services related to employee welfare facilities and others■ TOYO KOHAN SHANGHAI CO., LTD. (China)● Toyo Pack (Changshu) Co., Ltd. (China)

Manufactures and sells cold rolled steel sheets and surface-treated steel
sheets (construction of surface-treated steel sheet plant is in progress)

Manufactures and sells beverage paper cups

● Kohan Shoji Co., Ltd.

● Toyo Seikan Guangzhou Co., Ltd. (China)
Sells cans, plastic containers and other packaging

Sells hard alloys and machine tools■ TAIWAN TOKAN CORPORATION● Sun Dragon Development Limited (China)● Malaysia Packaging Industry Berhad (Malaysia)
Manufactures and sells flexible packaging

Manufactures laminated steel sheet for cans

● Tokan Kogyo Co., Ltd.

● TOYO-MEMORY TECHNOLOGY SDN.BHD.
(Malaysia)

Trucking business● Consolidated companies (as of June 30, 2015)

Manufactures and sells aluminum substrates for magnetic disks
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

Manufactures and sells paper cups, pasteboard and spoons
Sells paper cups, plates and napkins■ Takeuchi Hi-Pack Co., Ltd.

Manufactures and sells cardboard products and paperware■ SENRI TRANSPORTATION Inc.
Trucking business■ Shida Shiko Co., Ltd.

Manufactures and sells corrugated plastic products● Tokan (Changshu) High Technology Containers Co., Ltd.
(China)Contract manufacturing and sales of aerosol products
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,and tourism services

Manufactures and sells plastic products● TAIYO PLASTIC CORPORATION OF THE PHILIPPINES
Manufactures and sells plastic products● T.K.G. CORPORATION (Philippines)■ Lymphotec Inc.

Amplified Natural Killer Therapy support, pharmaceutical production

Land leasing

Toyo Seikan GroupCSR REPORT 20157

Message from the President

Looking back Year 2014
Japan’s economy in 2014 followed a gradual recovery
accompanied by improvements in corporate profitsand employment and income environments despitea temporary downturn in consumer spending due toadverse effects including consumption tax increase.
Meanwhile, it was a harsh year for Toyo Seikan Group.
Domestic sales primarily of beverage containers
declined, affected by the rise in the consumption tax rate
and unseasonable weather in summer despite favorable
sales from overseas subsidiaries, steel plate related
business and functional materials related business.
Operating income declined mainly reflecting higher raw
material and energy prices due to yen depreciation andan increase in depreciation expenses. As a result, net
sales were almost on target set under “Toyo SeikanGroup Third Mid-term Management Plan” while theoperating income unfortunately fell far below the target.

Towards strengthening profitability
In view of the actual performance versus projection
under the Plan, we expect to achieve net sales mostly inline with the Plan for 3 years. However, operating income
was in line with the Plan only for the first year, and our
top priority is to increase profitability. To achieve thetargets set under the Fourth Mid-term Management Plan
to be formulated and “Growing 2022”, the Group’s 10year vision for growth, we will address these initiatives byleveraging the Group’s collective strength.
In developing our existing business, we will cultivate newmarkets by developing high-value-added products andpromote structural reform to increase profitability given
the shrinking demand associated with a lower birthrate
and aging population in Japan.
We have continued investments in overseas markets.
We will vertically expand the packaging business andthe machinery and equipment business further, conduct
selection and focus in our businesses and redistributeour management resources as per regional market
environment.

8

Toyo Seikan GroupCSR REPORT 2015

In developing new businesses, we are pursuing R&D
activities in the areas of “life science and medical care”,“electricity/electronic, information & communication andenergy” for creating next-generation core businesses. We
are steadily developing and promoting cell culture systembusiness, genetic testing business and optical fiber lensbusiness, and aim to expand net sales in these areas.

Share the founding spirit which
nurtures growth and promote diversity
Each member of the Group should share the common
mindset and join forces together towards demonstratingcollective strength as a group. We have the “Fundamental
Principles” and “Work Rules for Employees” that wereproclaimed in 1933, after 16 years of establishment.
They outline the goals and direction for the company
and employees. To summarize, the following is statedtherein: 1) Our objective is to bring happiness to mankind,2) Purpose of our business is not just to gain profit. Profit
is a result of our hard work and not our main aim, 3) Eachof us must incorporate a sense of service in our work,4) Our products must be better in quality, lower in priceand must be supplied more quickly, i.e., pursue QCD(Quality, Cost and Delivery) and 5) To be satisfied with
only a small success is to take a step backwards. Our
primary duty must be at all times to work without losing
our youthful vitality and courage. The above incorporates
target vision of modern management. I believe ourgrowth is built on understanding and realizing thisfounding spirit.
The business environments surrounding us aredramatically changing. We need to keep launchinginnovative products and ideas as a driving force for growth
in response to changing environment. To achieve thisgoal, involvement of innovative and versatile employees
beyond nationality and race would be indispensable.
We aim to become a corporate group where diverse
employees can fully demonstrate their capabilities, andtheir expertise is actively utilized in every business areaby promoting a deeper understanding of diversity within
the Group.

under the fundamental principle of “contributing to
the happiness and prosperity of mankind” throughpackaging technology, demonstrated creativity andcontributed to the society by offering a wide variety of
products, systems and services.
By leveraging high-quality products and technology
accumulated over our long history, we endeavor to help
achieving comfortable and rich life for all stakeholders byoffering products we use in our daily life.
We thank you for your continued support and guidancein the future.

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

Since its establishment, Toyo Seikan Group has,Toyo Seikan GroupCSR REPORT 20159

Group News & Topics

Toyo Seikan Group Companies conduct CSR activities considering theirbusiness and regional characteristics.

■ J apan Packaging Contest

Toyo Seikan Group Products awarded in FY2014
The packaging products developed by Toyo Seikan Group companies were highly appreciated both at home and abroad
also in FY2014. Products which pursue better “functionality and ease of use”, “environmental friendliness” and “design”
won many awards. We will continue to offer products that meet customers’ needs by demonstrating the Group’s synergy.

■ Kinoshita Awards (R&D Award)■ Aoki Katashi Innnovation Award
Toyo Seikan Co., Ltd. and Toyo Seikan Group
Holdings, Ltd. were jointly awarded with Ajinomoto
General Foods, Inc.
■ Japan Packaging Contest “Package Design Awards”■ Asia Star Award
A joint award between Ajinomoto General Foods, Inc.
and Toyo Seikan Co., Ltd.
Fine Cellular Foamed PET bottle“Fi-Cell”
A recyclable PET bottle with white
pearl-like glossy appearance formedby fine-cellular foaming method
and equipped with a light barrier
property which blocks 90% of UV
and visible rays.

■ FY2014 Awards for Resource Recirculation

Techniques and Systems“Award of Director-General of Industrial Scienceand Technology Policy and Environment Bureau of
Ministry of Economy, Trade and Industry”■ The 2nd Food Industry Mottainai Awards, “Award of
Director-General of Food Industry Affairs Bureau”
Newest Filling System (NS* System)
A joint award between ITO EN Co.,
Ltd. and Toyo Seikan Co., Ltd.
The newest aseptic filling system jointly
developed by ITO EN Co., Ltd. and Toyo
Seikan Co., Ltd. which was appraisedfor its promotion of resource-saving andreduction of environmental impact.
NS*: Non-Sterilant■ Good Design Award 2014
■ Japan Packaging Contest“Accessible Design Packaging Awards”

Squeeze-Hinel-Bottle
Tokan Kogyo Co., Ltd.
A combination of an easy opening plastic cap,
“Hinel (Twisting Off) Cap” and a squeezable
plastic bottle (by just pressing its shoulder part)
enables users to easily control discharging
quantity irrespective of liquid viscosity.

Most prestigious International
Packaging Design Competition■ Pentawards 2014
“BRONZE”
Eda beans (edamame) container
Toyo Seikan Group Holdings, Ltd.

Toyo Seikan GroupCSR REPORT 2015

■ Japan Packaging Contest “Package Design Awards”
A display tray for persimmon
Nippon Tokan Package Co., Ltd.
A manually assembled tray for
persimmon designed to improvestability during column-stacked
transportation and stackability.
A persimmon-shaped window also enhances productvisibility.

■ Japan Packaging Contest “Packaging Transportation Awards”
Paper Packaging (12 paper packs), Easy-to-open Case
A joint award between ITO EN Co., Ltd. and Nippon Tokan
Package Co., Ltd.
An improved package which can be opened
from the side whereas conventional package
can be opened only from the top. Can be
opened just by pulling a tab and the products
can be taken out easily even in the refrigerator.
■ Japan Packaging Contest “Industrial Packaging Awards”
Cardboard packaging for a compressor
A joint award among Nippon Tokan Package
Co., Ltd., Panasonic Corporation and
Mihama Corporation
A supporting pad is standardized so that products
in different sizes and shapes can be fixed.

Profile of each award[Kinoshita Award] Sponsored by Japan Packaging Institute and awarded to those who made excellent achievements in R&D, improvements and rationalization of
packaging and generated new opportunities.
[Aoki Katashi Innovation Award] Sponsored by Japan Society of Polymer Processing and awarded to those who have achieved highly unique and creative polymer
processing technology.
[Japan Packaging Contest] Sponsored by Japan Packaging Institute and Japan's largest contest of packaging held for further developing and disseminating superior
packaging and packaging technology.
[Asia Star Award] Sponsored by Asian Packaging Federation for introducing superior packaging developed in Asian countries to the world. Only the packaging design
awarded in each country can participate in the competition.
[Awards for Resources Recirculation Technologies and Systems] Sponsored by Japan Environmental Management Association for Industry and aim at encouraging
and promoting remarkable projects and efforts by industrial groups with outstanding technologies or systems, contributing to the control, reuse and recycle of waste.
[Food Industry Mottainai Awards] Sponsored by Japan Organics Recycling Association and widely awarded to companies, company groups and individuals who excel
in promoting initiatives for global warming prevention and energy saving such as “effective use of heat”, “efficient transportation system”, “food waste reduction”,“collaboration across companies” and “collaboration with consumers” towards achieving sustainable growth of the food industry.
[Good Design Award] Sponsored by Japan Institute of Design Promotion and awarded to “a good design” that enriches life, industry and the whole society.
[Pentawards] A
 n international design competition sponsored by Pentawards for fostering packaging technology and packaging design.
[Packaging Tohoku Products Exhibition] A design competition sponsored by Tohoku Bureau of Economy, Trade and Industry and by Japan Graphic Designers
Association for supporting the reconstruction of Tohoku region through packaging design.
[Japan Package Design Awards] A design competition sponsored by Japan Package Design Association for improving the public understanding of package design.

New group companies
Toyo Seikan Group will grow along with local societies.
Kitchen Deli

Potte

Toyo Seikan Group’s contribution to
Tohoku Revitalization■P ackaging Tohoku Products Exhibition
2014 “Excellent Award”
Tamura Farm
Label graphics for “Sparkling Apple
Beverage 100%”
Toyo Seikan Group
Holdings, Ltd.

The glass bottle ismanufactured by Toyo GlassCo., Ltd. and the cap by
Nippon Closures Co., Ltd.

10

Kitchen Deli, Potte
Toyo Sasaki Glass Co., Ltd.
Awarded for its stackability and easy-to-store functions.

“Appropriate Packaging Awards”
A hanging display preventing box distortion
Nippon Tokan Package Co., Ltd.
Enhanced hole position to pass through stringsand slit position prevent distortion of a hanging
box and the products can be taken out easily.

Japan’s top-ranking packaging
contest■ Japan Package Design Awards
2015 “Awards”
Kewpie Corporation
Styling sauce bottle shape
Toyo Seikan Group Holdings, Ltd.

Opening of Takatsuki Logistics Center
Toyo Mebius Logistics Co., Ltd.
Takatsuki Logistics Center, a multi-tenanted center equippedwith various functions including distribution, manufacturing
and processing was established in Takatsuki, Osaka in
January 2015.
Takatsuki is located between Osaka and Kyoto and “Takatsuki
Interchange” of Shin-Meishin Expressway is scheduled toopen in 2017. The center will grow as a logistic site of Kansai
region together with Takatsuki City which aims to revitalize
the area. It will also serve as a temporary shelter in time ofdisaster for the local society and people.

Takatsuki Logistics Center

The establishment of TAIWAN TOKAN CORPORATION
Tokan Kogyo Co., Ltd.
TAIWAN TOKAN CORPORATION, a joint venture between
Tokan Kogyo Co., Ltd., YONG JI XING ENTERPRISE CO.,LTD. and WELL DRAGON CO., LTD., was establishedin YILAN COUNTY, TAIWAN (R.O.C.). This joint venturecompany will manufacture and sell paper cups for beverages
not just in Taiwan but also in the increasingly growing Asian
region with the aim of expanding its overseas business.

Signing ceremony ( from right Mr. Tsan Tan Lin, President of YONG JI XING ENTERPRISE
CO., LTD., Mr. Eiji Tsutsui, President of Tokan Kogyo Co., Ltd., and Ms. Wendy Lin,
Director of WELL DRAGON CO., LTD.)

Toyo Seikan GroupCSR REPORT 201511

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.

Toyo Seikan Group Management Vision
Aim to be the world’s leading professional company that contributes to thehappiness and prosperity of mankind with a key focus on “packaging
technologies”
Toyo Seikan will
1.	Pursue unlimited possibility of packaging containers that bridge the production
and consumption
2.	Become a corporate group that provides solutions with even more focus onenvironment in every phase of “production, filling & packaging, distribution,
consumption and collection & recycling”
3.	Become an unrivalled technology-driven company

Toyo Seikan Group vision for medium-to-long term growth
We formulated “Growing 2022” in 2013, the vision for growth in the next 10 years and started the third “Mid-term Management
Plan” for FY2013- FY2015 towards its achievement.

2nd Mid-termManagement Plan
(FY2010-FY2012)

3rd Mid-termManagement Plan
(FY2013-FY2015)

Future Vision of
Toyo Seikan Group(FY2022)

Strengthen the Group’s
collective strength 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•	Strategically invest by addressing thespecifics of overseas markets

Packaging businessOur 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, Toyo Seikan Grouphas fulfilled its mission based on such basic philosophy.
The Group’s essential CSR spirit is found there.

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.

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 with good ethics.

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.

Group 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

Audit and Supervisory Board

Steel plate related businessPresident

Functional materials related business•	Promote commercialization of new
businesses

1.	Our mission is to contribute to the happiness of people.

Life scienceNewbusinesses

Management Executive Meeting
Management Strategy Meeting

Electricity/electronics,
information & communication and energy
Environment

Group CSR Promotion Committee

Packaging/containers

Group Compliance Promotion Committee

Great
East Japan
Earthquake

12

Group Environment Committee

Shifted to a holding
company system
Floods inThailandToyo Seikan Group➡

CSR REPORT 2015

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 201513

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 governance

Information disclosure policy

Shareholder return policy

Toyo Seikan Group Holdings, Ltd. strives to gain confidence
from shareholders, investors and securities analysts bydisclosing timely and appropriate information based on its
Basic IR Policy.

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 the 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.

Toyo Seikan Group Holdings, Ltd. has, since its
establishment, focused on enhancing its corporate value
under the corporate philosophy of “contributing to thehappiness and prosperity of mankind through packaging
technology”. The Company places the enhancement ofcorporate governance as management priority to enable
sustainable development and progress while flexibly
addressing changes in business environment.
Further, based on Japan’s Corporate Governance Codeintroduced on June 1, 2015, we will further enhance thecorporate governance and pursue sustainable growth andhigher corporate value.

Corporate governance system
The Board of Directors is composed of nine (9) Directors,
including three (3) Outside Directors who are independent
from the management of the Company. The number of
Outside Directors represents one-third of the members of
the Board of Directors. The names of all three Outside
Directors are reported to the Tokyo Stock Exchange as
Independent Directors of the Company. The Board of
Directors generally meets once a month and holds
extraordinary meetings when necessary to determine
important issues in relation to the execution of business
operations. To clarify the management responsibility of
Directors and flexibly establish a management system topromptly respond to changes in the management
environment, the term of office of Directors is one year. The
Audit and Supervisory Board is composed of five (5) Audit
and Supervisory Board Members, including three (3) Outside
Audit and Supervisory Board Members. The Audit andSupervisory Board generally meets once a month and holds
extraordinary meetings when necessary.
These Outside Directors and Outside Audit and Supervisory
Board Members have actively expressed opinions at theBoard of Directors, and active discussions based on such
opinions have enabled the effective operation of the Boardof Directors. The Company ensures an appropriatemonitoring of the management system by Outside Directors
and Outside Audit and Supervisory Board Members whoare independent from the Company's management as well
as monitoring by the shareholders who approve the electionof Directors each year.

Strategic planning and execution by
the Management Strategy Meetings
The Company has implemented the Executive Officer
S yste m w i th th e a im of c l e a r l y d isti n g u is h i n g th e
management's decision-making and supervisory functions
from the business execution functions, while ensuring
management efficiency and flexibility. To appropriately andpromptly e stablish basic manage me nt guide line s,
determine various measures and aggressively promotemanagement activities, “Management Strategy Meeting”
is held once a month which comprises full-time Directors,
CFO, CTO, Senior Executive Of ficers and Executive
Officers. Further, “Management Executive Meeting” is held
twice a month and attended by full-time Directors, CFO,
CTO, Senior Executive Officers, the Presidents of corebusiness operating companies and the Presidents ofquasi-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
General Meeting of Shareholders
Election and Dismissal

Election and Dismissal

Basic Policy
Toyo Seikan Group Holdings, Ltd. (hereinafter, theCompa n y) fu lly u n de rs t a n ds t h a t t h e t ime ly a n d
appropriate disclosure of corporate information to all
stakeholders including shareholders, investors andsecurities analysts forms the basis of a sound securities
market. The Company will also issue corporate
information in a timely, fair and accurate manner
through active communications with its shareholders,investors and securities analysts, with the aim of gaining
their confidence and appropriate evaluation of theCompany.

Audit

Internal Audit Office
Management Executive Meeting
Management Strategy Meeting

Representative Directors

Group CSR Promotion Committee
Group Compliance Promotion Committee

Operating Officers
Respective Divisions

Group Environment Committee■ Annual dividendsー● Consolidated dividend payout ratio

(yen)

(%)
78.8％

12

IR activities

8

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.
Main Activities in FY2014
Target group

IR activities

Mass Media◦Financial Settlements Briefings
Analysts(Mid-term and Year-end)
Domestic Institutional◦Individual IR Meetings
Investors
Overseas Institutional
Investors◦Individual IR Meetings◦Participation in conferences held bysecurities companies◦Publication of Investor’s Guide◦Publication of Reports (Mid-term and Year-end)

Accounting Auditor

Board of Directors

Dividend payments

16

Shareholders

Accounting
Audit

Audit and Supervisory Board

Election and Dismissal

Basic IR Policy

80.0
60.0

14 yen12 yen40.0
14 yen
20.0

4
0

21.6％

20.6％

2012

2013

Shares

0.0
2014

(FY)

(As of March 31, 2015)

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: 6,820
Listed on the first section of the Tokyo Stock Exchange(Stock code: 5901)
Shareholder composition
Treasury shares 6.85%

Individuals and others 8.54%

Securities companies
2.72%

Government,
local public bodies
0.00%

Overseas
corporations, etc.
25.34%

Financial institutions
35.24%

Other domestic corporations
21.31%

Collaboration
Investor’s Guide

14

Toyo Seikan GroupCSR REPORT 2015

Toyo Seikan GroupCSR REPORT 201515

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“Shinagawa Eco Festival”
Toyo Seikan Group participated in “Shinagawa Eco Festival”
held on May 25, 2014 in the Shinagawa Central Park in frontof the Shinagawa City Hall. This was a good opportunity tohelp those who visited the exhibition of eco-friendly
packaging containers and attended the lesson of handicrafts
using containers to better understand the ecological aspectsof containers which are used daily with less attention.

Participation in environmental events
PET Refine Technology Co., Ltd. participated in the
exhibitions “Earth Environment Fair 2014 in Adachi Ward ofTokyo” and “Kawasaki International Eco-Tech Fair 2015”.
PET Refine Technology distributed to the visitors at each
event venue PET bottled water produced by Japan Bottled
Water and designed by the Marketing Center of Toyo
Seikan Group Holdings, Ltd. These PET bottles use
chemically recycled PET made from used PET bottles.This
bottled water drew much attention from the visitors andbecame part of the social contribution activities.

Plant tour

Clean-up activities in local areas

Toyo Glass Co., Ltd. has been holding a plant tour overmany years to visitors, mainly elementary, junior high, andsenior high school students as well as local citizens, tounderstand the life cycle of glass bottle from manufacturing
to recycling. This helps the visitors learn more about
environmental issues.

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.

Toyo Glassemployees
explaining about
glass bottles

Plant visit by senior high school
students
Hiratsuka Plant of Nippon Closures Co., Ltd. welcomedsenior high school students in Tokyo to help them with theirsummer holiday home work. They had a Q&A session
followed by a plant tour. The staff enjoyed simple questions
raised by students and their straightforward reactions.

Shinagawa Eco Festival

A night rescue training
with a ladder truck
Ibaraki City Fire Dept. used part of the premises of Toyo
Seikan Ibaraki Plant to practice night rescue operations witha ladder truck against a mid to high-rise building in May
2015. A night rescue drill with a ladder truck was held torescue people trapped in high places using an emergency
entrance.

The three dragons (“Mily”, “Doly” and“Lily”) considering the environment of
Adachi Ward

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

PET bottled water distributed at“Kawasaki International Eco-Tech Fair
2015”
Nippon Closures Co., Ltd.
Sales Dept., West Japan

Paper cup collection activities
Tokan Kogyo Co., Ltd. proposes paper cup collection carts
to assist paper cup collection activities at venues, such as
event halls and stadiums where paper cups are used. Suchwaste separation activities appeal to visitors and supporters.

Nippon Closures
R&D staff being
interviewed

Initiatives by overseas Group
companies

Toyo Kohan Kudamatsu
Plant

Visit to a children's nursing home in Thailand
Bangkok Can Manufacturing Co., Ltd. (BCM) carries out
volunteer activities around the anniversary of its establishment.
In 2014, BCM staff visited the children's nursing home in
Pathumthani Province to donate food and coloring books tothe children. They enjoyed the sweets they received andcolored the pictures together with BCM staff who weregreatly encouraged by their smile despite not having parents.

Tokan Kogyo Co., Ltd.
Komaki Plant

A paper cup collection cart placed in the NACK 5 Stadium in Omiya

Rescue training from a ladder truck

16

Toyo Seikan GroupBCM staff visited the institution and had a good time with children
CSR REPORT 2015

Toyo Seikan GroupCSR REPORT 201517

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 the 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 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.

FY2014 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
information system for environmental management

Resource
recycling

Assessment

FY2015
Target9.7%
reduction

Achieved by promoting energysaving activities

★★★

8.5%
reduction★

20%
reduction

19%
reduction

8%
reduction

Reduce primary unit of material input

2.9%
reduction

3.5%
reduction

Achieved through lightweighting,
etc.

★★★

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

48%
reduction

22%
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)

120 sites

129 sites

Achieved by promoting recycling★★★

131 sites(1)	Reduce the primary unitof release and transfer
of chemicals under the
PRTR Law10%
reduction

15%
increase

Release and transfer amountincreased due to higher
production of various materials★

12%
reduction(2)	Reduce the releaseand transfer amount of
toluene, xylene andother organic solvents

14%
reduction

1%
increase

Further shift to water-based,
solventless coatings andadhesives remains unachieved.

★

16%
reduction

Promote green
procurement,
distribution andsales

Reduce the primary unit for CO2 emissions in
the distribution process8%
reduction

9%
reduction

Achieved due to more efficient
operational system with lessworkers.

★★★

9%
reduction

Promote resource
recycling

Increase the material recycling rate

94%

93%

Nearly achieved due to strict
separation of waste, etc.

★★

94%

Continuously
createeco-friendly
products

Promotereduction ofenvironmental
impactin production
activities

7.6%
reduction

Results

Reduce CO2 emissions(vs. FY1990)

Promote reductionof environmental
impact resulting
Promote wastefrom production
reduction
activities
andzero emissions

Promoteenvironmental
management
and construct
information systemfor environmental
management

FY2014
TargetImplemented renewal for
restructuringof production system, plannedhigh efficiency equipments.
But target unachieved due toincreases in production andincreases in power CO2 emission
unit.

Chemicalcompounds
managementGreenprocurement,
distribution
and sales

FY2014 Activity Report
The results of FY2014 activities are shown in the tablebelow.
Four of the nine items were achieved while five remainunachieved.

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

Base year: FY2009

Environmental
communications

18

Toyo Seikan GroupCSR REPORT 2015

Toyo Seikan GroupCSR REPORT 201519