Fine Materials for the Future

CSR Report
2020−2021

CONTENTS

Management Principle, Management Policy and Guidelines for Action………………………………… 3

TODA KOGYO Group s Business Contents and History …………………………………………… 4
Message from the President ………………………………………………………………………………… 8
Special Report I Responsible Care and Dialogues with Local Communities …………………… 9
Special Report III The Monozukuri (manufacturing) workshop …………………………………… 12- Management -……………………………………………………………………………………………… 142)Compliance3)Risk Management1)Business Overview and Business Activities
2)Expanding Businesses in China…………………………………………………………………………………………… 20

1)For Improving Product Quality

1. We will establish a management foundation as a Manufacturing Company that can contribute to society and willcontinue to grow and develop even 100 years after its foundation.
2. We will reﬁne our only-one technologies and continue to oﬀer products and solutions that have high added value.
3. We will become a company that is essential on a global level and increase the corporate value of the group.
4. We will seek the happiness of our employees and their families and will be a company that is constantly trusted by our
stakeholders.

Guidelines for Action
1. We will act quickly to oﬀer products and solutions that respond to the requirements of the customers.
2. The whole company will come together as one, with manufacturing, engineering, sales and management working
enthusiastically together.
3. We will be corporate citizens who are faithful and fair and will act with a strong sense of ethics.
4. We will improve our dignity as individuals and will continue to have pride, hope and dreams for the future.
5. We will work for harmony and symbiosis with the local community and with the global environment.

2)Quality Assurance Activities
3)Situation regarding Customers Inquiries- Environment and Safety -………………………………………………………………………………… 22

CSR Policy

Management4)Small Group Activities

Special ReportⅢ- Product Quality -Management Policy

Special ReportⅡ- Topics of Business Activities - …………………………………………………………………………… 16

Our group will further improve the ﬁne particle synthesis technology we have developed with iron oxides and will always
continue lively growth and development.
We will work on a foundation built on sincerity and trust and we will bring together our creativity and manufacturing
strength to make a contribution to society in general with attractive new materials and solutions that are full of originality.

Message from the President/
Special ReportⅠ1)Corporate GovernanceManagement Principle

Product Group
Familiar to Consumers

Special Report II Materials for Environmental Measures …………………………………………… 10

Each and every executive and employee fulﬁlls his or her respective role and works in accordance with these principles.

Business Contents
and History

TODA KOGYO Group s Product Group familiar to Consumers …………………………………… 6

TODA KOGYO Group renewed its Management Principle, Management Policy and Guidelines for Action in ﬁscal 2014.

Management Principle
and CSR Policy

TODA KOGYO Group s Management Principle and CSR Policy1)Reduction of the Environmental Load3)Registration for the participation in the Environmental Reporting Platform Development Pilot Project(Ministry of the Environment)
4)CSR Rating by a third party rating organization, EcoVadis SAS6)Security Export Control7)Occupational Safety and Health (Safety and Health Activities)

1)Relationships with Local Communities

Not only by means of accumulation and supply of resultsbrought by high quality growth which is underpinned by creative
te c h no log ie s , b ut a l s o by m e a n s of e s t a b l i s h m e nt a n dadministration of a transparent and sound corporate governancesetup and eﬀective internal controls, we will endeavor to earn
understandings and empathies of all our investors.

We will share values from customers viewpoints and, using
our original technologies as advantages, we will also build good
par tnerships w ith our business par tners who share samea mbit ions. A nd t hen, we w ill cont inue to ma ke mutua lly
beneﬁcial eﬀorts for achieving our common goals.

Organization Chart …………………………………………………………………………………………… 38

For Society

For our Employees

Oﬃces and Aﬃliate Companies …………………………………………………………………………… 39

In accordance with the spirit of compliance, we will break oﬀ
relations with antisocial forces, give the highest priority toconsiderations for safety and the global environment, and aim tobuild a wonderful living culture on the global level based on ourc u lt u r a l c a pit a l , w h i le s e ek i n g c o o p e r at io n w it h lo c a lcommunities and harmony with international societies.

The creativity and diversity of each and every employee are ourwe a lt h . We w i l l s upp or t a nd fa i rly a s s e s s t he l i m it le s sadvancement and expression of these abilities. We will also
strive to live together while enhancing the comfort and aﬄuenceof employees.

3)Training Systems4)Interview with Employees5)Support for the Development of the Next Generation / Activities on Promotion of Women s Participation and Advancement

Organization Chart/
Offices and Subsidiaries

For our Customers and Business Partners

Society

For our Investors2)Respect for Human Rights

2

Four guidelines for CSR……………………………………………………………………………………………………… 28

Environment
and Safety- Society -Product Quality5)Sustainable Procurement

TODA KOGYO Group is committed to carry out management on an ongoing basis which is based on
management principle and management policy, for the purpose of continued sound development into the future.
Recognizing that the fulﬁllment of our social responsibility is an important role as better citizens and corporate
citizens, we will adhere to the relevant laws and ordinances and company regulations, on the base of the spirit ofcompliance. Top managers of our Group themselves will lead by examples of these philosophy and policy, thenwill enforce within the company, disseminating to group corporations and business partners. Furthermore, we willseek sound and normal relations with politics and government, while refusing to have relations with antisocial
forces and groups that may threaten the order and safety of civil society.

Topics ofBusiness Activities

2)An international NGO, Carbon Disclosure Project (CDP) s climate change questionnaire3Business Contents of TODA KOGYO Group
Putting the most advanced technologies at your side and at your ﬁngertips♦EMC♦Imaging

Materials for electronic
components

Electromagnetic compatibility/
immunity solution

Electronic printing materials♦Ecology♦Digital♦ColorEnvironmentally functional
materials

Digital recording media materials

Pigments

・Magnetic materials for digital recording
media used with computers
・Magnetic materials for magnetic cards

・Pigments for automobiles and office equipment
・Pigments for building and building materials
・Pigments for antirust paints for ship bottom・Lead free materials (Polyvinyl chloride resin
stabilizer and road indication materials)
・Combustion catalysts
・Contaminated soil conditioners

Please do have a look at TODA
KOGYO CORP. introduction video of
4 minutes and 30 seconds.
(*It is an introduction only in Japanese.)♦BatterySpecial ReportⅢ

Battery materials
・Battery materials for electric vehicle

1953
Tokyo Sales Oﬃce andOsaka Sales Oﬃce
established

1959
Onoda Plant built in Sanyo-Onoda City,
Yamaguchi Prefecture

1823 Bengala manufacturing
started in Ibara City,
Okayama Prefecture

1920

1930

1940

Beginning from the industrial
manufacture of Bengala, theoldest pigment known to mankind

1950

1960

1953
Joint research started with Kyoto University.
Bengala manufacturing is transformed
from a traditional skill to a technology .
1953
Production plant of ferrite materials
newly added to Hiroshima Plant

1970

1980

World s Number 1 share for magnetic powder
used in audiotapes and videotapes!

1996
Toda America Incorporated established
1997
Toda Pigment Corp. established2004
Zhejiang Toda DMEGC Magnetic Co., Ltd.
established in Zhejiang Province, China

2012
TODA MAGNET (SHENZHEN) CO., Ltd.
established in Guangdong Province, China
2014
Head Oﬃce relocated to Hiroshima City.

2006
TODA Ferrite KOREA Co., LTD. established in South Korea
2007
Toda Magnequench Magnetic Material (Tianjin) Co., Ltd.
established in Tianjin, China
Toda Advanced Materials Inc. established in Canada

2008
2000
Head Oﬃce relocated to Funairi-Minami All shares of Tokyo Shikizai Industry Co., Ltd. Acquired
TODA ISU CORPORATION established in South Korea
in Naka-ku, Hiroshima City

2016
Toda Kogyo Asia (Thailand) Co., Ltd. establishedAll shares of Toda Fine Tech Inc. acquired2019
Toda Plastic Magnet Material (Zhejiang) Corp. relocatedand responded to increase the capacity of production

2000

1988
1989
1999
Dedicated facility to produce Manufacturing facility of magnetic Facilities for manufacturingcoloring materials for
powders for metal tape added to
Hydrotalcite newly added toelectronic printing added
Onoda Plant
Onoda Plant
to Onoda Plant
Computer digital
Application of therecording tape
wet synthetic method

2015
BASF TODA Battery Materials LLC established

2010
2003
2004
Manufacturing facility of
Facilities for manufacturing Barium titanium
cathode materials for lithium trioxide added to Onoda Plant
ion rechargeable battery
newly added to Onoda Plant

to materials otherthan ironHydrotalcite
1994
Development of a combustion
catalyst which suppress
generation of dioxins

1996
Facilities for manufacturingcolor toner carrier materials
newly added to Otake Plant

Example of use of Barium titanium trioxide
2006
Manufacturing equipment ofantenna sheets for IC tags
added to Otake Plant

2011
Manufacturing equipment of NFC
Ferrite sheets for use in smartphones
added to Otake Plant

Contributing to reduction of industrial wastes
and eﬀective utilization of resources
The industry s ﬁrst! Development of thewet synthetic method for iron oxides

Magnets

Magnetic tickets andmagnetic cards

Examples of use of a dioxin-suppressing
catalyst (garbage bags, cushioning material)

Color toner carrier

Metal-compatible IC tags

Organization Chart/
Offices and Subsidiaries

1984
Production of ferrite materials
started at Otake Plant

Society

1973
Equipment for production ofcoloring pigment using wet
synthetic method added to
Onoda Plant.

Toner materials

1994
Toda Kogyo Europe GmbH established1990

Ferrite powder

Pellets

4

1984
Otake Plant newly
established in Otake City, Hiroshima Prefecture

1969
Manufacturing equipment of magnetic powder materials
for audiotapes and videotapes added to Onoda Plant

Use of iron sulfate and iron chloride,
which are derived as byproducts fromiron and steel product manufacturing
processes, as raw materials
Coating material for building timber
Primer for dark blue dyeing
Coloring for lacquerwareand bangasa (coarse oilpaper umbrellas)
Ceramics (akae glaze), etc.

1983
Creative R&D Center
newly established in
Funairi-Minami in
Naka-ku, Hiroshima City

Start of overseas activities!

2011
Toda United Industrial (Zhejiang) Co., Ltd. in
Zhejiang Province, China became aconsolidated subsidiary of TODA KOGYO.

Environment
and Safety

1910

1965
Overcoming the pollution problems using the developmentof the wet synthetic method in which iron oxides are synthesizedfrom aqueous solution by a chemical reaction

1983
Shares listed on the ﬁrst sectionof Tokyo Stock Exchange

2003
Head Oﬃce moved to Otake City.
Wholly owned subsidiary Toda Plastic Magnet Material(Zhejiang) Corp. established in Zhejiang Province, China

Product Quality

1975
Funairi Plant transformed into a
dedicated research anddevelopment facility.

1953
In the process of1936
manufacturing iron oxides
Head Oﬃce and plantby calcination of iron sulfate,relocated tosulfurous acid gas was generated
Funairi-Minami in
Naka-ku, Hiroshima City. and became a serious problem.

Founded
in
1823

1971
Head Oﬃce relocated to
Yokogawa-Shinmachi in Nishi-ku,
Hiroshima City.

1991
Otake Creative R&D Center establishedin Otake Plant

Topics ofBusiness Activities

1933
TODA KOGYO CORP.
established in
Yokogawa-Shinmachi in
Nishi-ku, Hiroshima City

Management

History of TODA KOGYO Group
1907
Plant relocated to Asakita-ku,
Hiroshima City (Hiroshima Plant)

Special ReportⅡ・Toner materials for monochrome printers
・Carriers for color copiers・Magnet materials for printers and copiers

Message from the President/
Special ReportⅠ・Parts for smartphone products
・Parts for wearable products・Electric wave absorption materials

Product Group
Familiar to Consumers

・Magnet materials for motors for automobiles
・Magnet materials for household appliance motors
・Magnet materials for various sensors
・Electronic parts (inductors and capacitors)

Business Contents
and History♦Device

Management Principle
and CSR Policy

TODA KOGYO Group expands business based on nanotechnologies beginning with the wet synthesisof iron oxides. Iron oxides are inorganic compounds composed primarily of iron and oxygen. Dependingon types of bonding of elements, iron oxides show diﬀerences in color, hardness, strength, magnetismand other physical or chemical properties.
TODA KOGYO s wet synthetic technology is unique in that we can freely produce various kind of
materials with the functions and properties required by the application, by means of controlling
properties of particles. Our accumulation of nanotechnology based on wet synthetic technology
represents the core competence of TODA KOGYO.
Our accumulation of specialized knowledge, technologies and know-how based on iron oxides enables
us to approach customers issues from a new viewpoint and to ﬁnd solutions from the perspective ofmaterials.
In recent years, we have developed and manufactured materials for electronic parts unique to TODA
KOGYO with superior knowledge of materials, such as Barium titanium trioxide. Therefore, we can meet
the advanced demands of customers in the electronic parts market. Moreover, returning to the origin ofiron oxides, we will continue to focus on the development and manufacture of various kinds of catalysts,
magnet materials and functional pigments.
With the entire TODA KOGYO Group working together, we will continue to provide solutions which
support information, environment and energy via materials.

Ferrite sheet

5

TODA KOGYO Group s Product Group familiar to Consumers
Management Principle
and CSR Policy
Business Contents
and History

Chemical products are used in various forms as a part of our everyday lives.
TODA KOGYO Group s materials contribute to downsizing, weight reduction
and increasing the performance of automobiles, consumer electronics,
information equipment, etc.
Under the slogan of Fine Materials for the Future , we will continue to create
new values utilizing the most advanced material technologies.

Refrigerator door gaskets

Product Group
Familiar to Consumers

Inductors
Capacitors

Ferrite sheets for wireless charger

Magnetic toner and magnetic carrier

Message from the President/
Special ReportⅠ

Motors for washing machine

Films for touch-screen

Lipstick

Special ReportⅢ

Combustion catalyst

Fan motors

Special ReportⅡ

Magnetic ticket

Motors for air conditioner

Industrial catalyst

Management
Product Quality

Paints for automobiles

Colored pavement

Lithium ion rechargeable battery

Bengala latticeEnvironment
and Safety

Films for a plastic greenhouse
MotorsElectronic circuit components

Ship bottom paints (rust preventives)

Organization Chart/
Offices and Subsidiaries

The line in the center of the roadSocietyBrake

6

Topics ofBusiness Activities

Rust preventives for a steel frame

7

Top Message

Special Report I Responsible Care and Dialogues with Local Communities
What is Responsible Care?

Environment
and Safety

Date: February 14, 2020
Location: Iwakuni Kokusai Kanko Hotel
Member & supporting companies: 7
Number of participants: 100

Society
Organization Chart/
Offices and Subsidiaries

President and Representative Director

Shigeru Takaragi
8

Product Quality♦A dialogue with local communities of the district aroundIwakuni & Otake Otake Plant♦

Topics ofBusiness Activities

Scene from the dialogue<Information disclosure＞
Preliminary drafts of dialogues
with local communities of the west
section of Yamaguchi and the
district around Iwakuni & Otake
are disclosed in Japanese only, on
our website.

Management

Exhibition booth of
documents of companies＜Request for companies＞① Emergency response atearthquake disaster② Prevention of plant accidents③ Strengthening of prevention ofenvironmental contamination④ Communication with local communities⑤ Active participation in regional events

Special ReportⅢ

Date: November 8, 2019
Location: ANA Crowne Plaza Ube
Member & supporting companies: 7
Number of participants: 108

Special ReportⅡ♦A dialogue with local communities of the west section of
Yamaguchi Onoda Plant♦

Message from the President/
Special ReportⅠ

In order to disclose the results of activities and to engage in dialogue with local communities,
Onoda Plant and Otake Plant participated in dialogues with local communities organized by the
RC committee of Japan Chemical Industry Association. Persons involved in government
administrations, educators, industry associations, citizens' groups, regional residents associations,neighboring companies and member companies participated in the dialogues. And a keynote
speech, reports on companies eﬀorts on RC, a question-and-answer session, an exchange
meeting, etc. were held. These dialogues were conducted mainly by answering opinions andrequests placed on us by local communities using surveys in advance.
We will continue to promote activities so as to preserve the environment and to ensure safety &health in line with community needs. We will also promote community contribution initiatives.

Product Group
Familiar to Consumers

Dialogues with Local Communities

Business Contents
and History

In the chemicals industry, each company that uses chemical
substances, voluntarily promotes activities so as to preserve theenvironment and to ensure safety & health in all stage of the life cycles
of chemical substances from developing and manufacturing to
distribution, use, ﬁnal consumption and disposal, as well as conducting
dialogues and communication with the public starting with disclosing the results of these eﬀorts.
We call these activities Responsible Care, RC .

Management Principle
and CSR Policy

TODA KOGYO Group is a chemicalmaterial manufacturer founded as a
producer of the red iron oxide pigment
Bengala which is known by paintingof porcelain and Bengala lattice in
1823, at the end of the Edo Period, At
present, in the ﬁeld of automobile andcommunication equipment, we also
provide parts and materials indispensable for highly advanced electronics,
such as magnet materials for high perfor ma nce motors, Fer r ite sheets for
wireless charger and Barium titanium
trioxide for multilayered ceramic capacitors (MLCC).
The 200th anniversary of foundationis coming soon three years from now.
Although the business environment surrounding us is a lways facing majorc h a n ge s a n d b e c o m i n g u n c e r t a i ncaused by the global recession due toCoronavirus Disease 2019 (COVID-19)
etc., TODA KOGYO Group engages in
activities to provide products and services that anticipate markets needs,
with each and every executive and employee of our group.
Concerning CSR activities, we are inaccordance with the principle of SDGs.
We also continue to work with constant attention to the role which a company should play for the rich development of humanity. As introduced on thefollowing pages, we also make strenuous eﬀorts with regard to the commercialization of environmental materials
such as Adsorbent for water t reatment and Carbon Nanotube . Moreover, we strengthen activities for the establishment of a corporate structure to
survive in the society as a company,
such as the provision of an environment and a structure where every employee is comfortable to work, and theenhancement of corporate governance
We will continue to strive to develop
lively together with our stakeholders.
We appreciate your kind understanding
and support.

The reception desk

Scene from a questionand-answer session

Scene from the dialogue

9Special Report II Materials for Environmental Measures
Management Principle
and CSR Policy

Supply of safe water

Reductions of greenhouse gases in the atmosphereCO

FeOOH ⇒ Fe₂O₃ ⇔ Fe₃O₄
O₂

Promotion of combustion by active oxygen in the catalyst
Catalyst regeneration by absorbing oxygen from the air

TIC injection

Combustion improving burner
Combustion improving burner

Mg/Al-Hydrotalcite and iron based compounds have been commercialized asadsorbents/removers of harmful ions including arsenic, boron, phosphorus, selenium in the water.
Mg/Al-Hydrotalcite traps, tightly ﬁxes and removes harmful ions in water, byHydrotalcite powder
exchanging harmful ions with its harmless carbonate ions etc. through the chemical reaction called intercalation . At present, we are developing a system that purify the contaminatedwater polluted with arsenic to safe water for developing countries. We have a plan to supply safe water
for more than ﬁve million people (1,000 t of Mg/Al-Hydrotalcite powder) using the system in 2025.

Special ReportⅢ

Image of a waste incinerator

Special ReportⅡ

Exhaust gas
Waste♦Adsorbent for water treatment

CO₂

Message from the President/
Special ReportⅠ

Iron oxides originally have a catalytic activity,by which reactant substances are oxidized(burned). TIC is designed to maximize its catalytic activity. By supply of TIC into a waste incinerTIC powder
ator, it acts as a combustion improver which promotes perfect combustion of wastes.
Due to this action, operation of a combustion improving burner during
waste incineration can be controlled. Our target in 2025 is reducing
more than 15 kt of CO₂ gas emissions that corresponds to the reductionof the operation of a combustion improving burner, by means of supplying customers in Japan and overseas with 500 t of TIC.

Supply of safe water for more than ﬁve million people in developing countries ※Milestone at 2025

※Milestone at 2025

Product Group
Familiar to Consumers

Reduction of more than 15 kt of CO₂ gas emissions during life cycle♦Iron oxide combustion catalysts, TIC

Business Contents
and History

TODA KOGYO Group makes active eﬀorts on the preservation and improvement of the global
environment through the development and commercialization of products, technologies and services
concerned with reductions of greenhouse gases in the atmosphere, water puriﬁcation measures, etc.,
as well as promoting activities toward the achievement of SDGs (Sustainable Development Goals).

arsenic:AsO₃³ - ,AsO₄³ boron:B(OH)₄ selenium:SeO₃² - ,SeO₄² -♦Puriﬁer for remediation of soil and groundwater,RNIP
Core/shell-structure

70nm

Decomposition of trichloroethylene with RNIP
Ethylene
EthaneC₃〜C₆compounds

Trichloro
ethylene

Pump

RNIP slurry

Groundwater ﬂow

Aquifer

Conceptual design of the puriﬁcation process at thein-situ conditions using RNIP

AMH is composed of environmentally friendly inorganic oxides, ﬁxes and insolubilizes soluble heavy metals; arsenic, lead, ﬂuorine, etc. in the contaminated soil, as
well as preventing the elution of these heavy metals into the groundwater.

CH₄ ⇒ C
（Carbon Nanotube）+ 2H₂

AMH powder

Organization Chart/
Offices and Subsidiaries♦Additive for insolubilization of heavy metals, AMH

Society

RNIP is composed of iron complex
nanoparticles with a mean particle diameter of 70nm, which have core (α-Fe)/shell
α-Fe(Fe₃O₄)-structure. By injection of RNIP
(Core)
into the contaminated soil, RNIP puriﬁes
chlorinated volatile organic compound(VOC) in soil and groundwater by rapid
decomposition (hydrogenation and dechlorination), due to its excellent reducing ability. A slurry of RNIP has an excellent diﬀusion property because of its nanoparticle size. Therefore, deep layer pollutions
can be puriﬁed at the in-situ conditions in a short period while minimizing environmental impacts. Moreover, soluble heavy metals in soil
and groundwater are insolubilized by Ferrite formation.
Fe₃O₄(Shell)Environment
and Safety

By DMR (Direct
Methane Reforming)
reaction using anactive iron based catalyst, highly functional Carbon Nanotube
Electron micrograph of CNT(CNT) and highly
concentrated hydrogen that does not contain CO₂ can be obtained simultaneously.
DMR reaction technology can contributeto realizing a low-carbon society. We aim
at early practical applications. Our target
supply of CNT for customers in Japan andoverseas in 2025 is 400 t/year, resultinghydrogen production amount of 120
t/year. In this case, reduced CO₂ amountby the consumption of Methane is about
860 t.

Product Quality

Hydrotalcite that isused as heat insulating additive for agricultural polyoleﬁn
resin ﬁlm, have theElectron micrograph of Hydrotalcite c h e m i c a l f o r m u l a ,Mg₆Al₂ (OH)₁₆ CO₃・
4H₂O. Hydrotalcite has the high infrared
ray absorptivity in wavelengths from 5 to25 μm, caused by carbonate anions in its
crystal structure. Therefore, the decline intemperature inside greenhouses can beprevented. In TODA KOGYO, Hydrotalcite is synthesized using the exhaust gas
from boilers etc. which contains CO₂. CO₂
originated from exhaust gas is not released
into the air but immobilized within Hydrotalcite. Our sales target of Hydrotalcite in
2025 is 6,000 t, resulting immobilized CO₂amount of 550 t.

Cartridge unit for adsorbent for water treatment
Topics ofBusiness Activities♦Carbon Nanotube

Pollution
source10♦Heat insulating additive for agricultural polyoleﬁn resin ﬁlm

Management

others:F - ,HPO₄² - ,SO₄² - , etc.

Adsorption, immobilization and reduction of more than 1 kt of CO₂ gas in the atmosphere ※Milestone at 202511

Special Report III The Monozukuri (manufacturing) workshop

Product Group
Familiar to Consumers
Message from the President/
Special ReportⅠ
Special ReportⅡ
Special ReportⅢ
Management
Topics ofBusiness Activities
Product Quality

Since 2019, as an advisor in charge of Strengthening the basis of
manufacturing , I have been working on the construction of the
Monozukuri workshop with members of Human Resources Development Department with the guidance & support from the top management and with the advices from concerned departments.
Prior to joining our company, I worked about 40 years in order toestablish global competitiveness in development/production departments, engineering/planning departments and overseas entities ofan automotive parts manufacturer. During that time, I was taught
about the concept of TOYOTA Production System (TPS) directly by themembers of Engineering & Research department of TOYOTA MOTOR CORPORATION. This experience is my starting point for considering strengthening of Monozukuri (manufacturing) .
Because our company is a chemical company, our production processes are considerably diﬀerent fromthose of an automotive parts manufacturer. However, I believe that a fundamental approach for Monozukuri of our company is the same as that of an automotive parts manufacturer. The 200th anniversary of foundation is coming soon in 2023. In order to pursue growth strategies by creating new values, ﬁrst of all, it isimportant to further deepen core technologies of existing businesses. And it is also important to promote
productive and technological innovation in addition to continuous improvements. I believe that the resources needed to realize these targets exist in Human Resources Development .
Having established in January 2020, the Monozukuri workshop has just reached a place to start. We will
work on expanding and upgrading the systematic position-based training programs for anyone involved inall ﬁelds concerned with Monozukuri .
We are now considering the content of education programs. We improve teaching materials for participants
to learn methods and approaches that can be practically used . We also think that these programs might begood opportunities for trainers to arrange their own experiences & knowledges and review them based onprinciples. Moreover, how to pass on skills and know-how accumulated by our predecessors is a signiﬁcantchallenge. Therefore, we have proposed to advance this challenge to an initiative across the company.
Japanese manufacturing that had led the world has been losing its advantage caused by the problems ofthe declining birthrates & aging society, high-cost business structure and strengthened regulations & protectionism. The situation is becoming a serious problem. Facing today s rapidly changing business environment,
we regard pursuing our ability to manufacture products that outperform the competition in the global
market as a crucial management task. And we are working on this task.
Japan is expected to always lead the whole world as the center of technology . We seek to develop
Human Resources Development from a global perspective considering diversity management.

Business Contents
and History  ♦Comments from Mr. Aizawa, advisor of TODA KOGYO CORP.♦

Management Principle
and CSR Policy

Placing the highest priority on safety and security, Monozukuri Promotion Center, Human Resources Development Department established the workshop of the safety training based on the sensations at Onoda
Plant in ﬁscal 2014. Based on the experience, we established the Monozukuri workshop in Onoda Plant, as
an important location that will further reinforce the base as a whole, including safety on January 23, 2020.
In order to remain as a developing company beyond the 200th anniversary of our founding, we now haveto further strengthen the base of Monozukuri once again. In the rapidly changing business climate, the important points here are understanding of the basic principles, reconﬁrming existing states, and proposing andpromoting improvements & innovations ofMonozukuri while adopting common viewpointby everyone. We consider these eﬀorts

as our fundamental concepts.
On the opening of the Monozukuri workthat creates a better
futureMonozukuri
>L1MB"
shop, we revised the deﬁnition of Monozukri
in TODA KOGYO Group once again. SumMonozukuri that places top priority on "safety andsecurity!/,/7:5marizing our management philosophies andMonozukuri that pursues trust and satisfaction of customers and business partners!OH-453KI=D8
policies, guidelines to put them into practiceMonozukuri that takes on challenges in improvements, supported
each and every one!&%*6JP.
" by
and origins of TODA KOGYO s Monozukuri,
Monozukuri that creates the originality and the"marketability!EM0)'0MB
our company newly adopted slogans, Toda
Spirits .
Monozukuri that pursues stability /F<D8
reproducibility of quality, and!;@/(92" eﬃciencyThe mission of the Monozukuri workshop is
Monozukuri that considers $!#G+
the environment and takes business globally!CA?N" 
to develop human resources who know important basic principles for diﬀerent levels,
notice workplace problems and can resolve the problems by themselves, under Toda Spirits . Based onsafety, 5S; Seiri (arrangement), Seiton (ordering), Seiso (cleaning), Seiketsu (neatness), Shitsuke (discipline)
and TQM(Total Quality Management), we look forward to learn across various ﬁelds together with all participants through experiences of seeing and feeling at the workshop.
The training of Monozukuri from a management viewpoint for management-level and the training of
Philosophy regarding quality were implemented when the workshop was opened and in February, respectively. However, under the inﬂuence of COVID-19 related confusion, trainings scheduled from March had
not implemented as planned. By recognizing the period of delay as a preparatory period to enhance the contents of trainings, we had been involved in preparing. Although the situation has not returned to what it was
before COVID-19, we restarted the trainings since July with attention to create a situation where Three Cs(Closed spaces with poor ventilation, Crowded places with many people nearby and Close-contact setting
such as close-range conversations) can be avoided.
Considering Monozukuri that pursues trust and satisfaction of customers and business partners as our fundamental concept, we will continue to work on human resources development.

Environment
and Safety
Society

12▲The entrance of the Monozukuri workshop▲Scene from the training▲Scene form the group activity

Organization Chart/
Offices and Subsidiaries▲Scene from the training after the opening ceremony

13

Management
３）Risk Management

dismissals
Management supervision Appointments,
Monitoring andand supervision
Instructions
audit

ReportingMonitoring
and audit

Management Conference

Corporate Governance System

Financial audit

Outline drawing♦Compliance System

Organization Chart/
Offices and Subsidiaries

14

SocietyThrough the establishment of Compliance Committee, the establishment & operation of Compliance Codeof Conduct and Compliance Promotion Regulation, the implementation of compliance education and otheractivities, TODA KOGYO Group will continue to maintain and improve compliance across the group.
Recently, concerning information security, we have been promoting the enhancement of personal and organizational measures through revision of internal rules and education for employees etc. of group companies
and subcontracting companies, as well as the enhancement of technical and physical measures. Under theinﬂuence of the spread of COVID-19 around the world since the end of 2019, the Government of Japan
requested for a self-constraint of going out and an implementation of telework. By means of providing thetelework environment under the basis of enhanced information security, we implemented working at homeﬁrst in Tokyo Oﬃce where seriously aﬀected by the virus spread, and in other business site sequentially as
well. This is one of the results achieved by enhancement of information security.
In an increasingly diverse society, we will continue to strengthen sustainable compliance.

If a risk occurs or materializes, TODA KOGYO Group stipulates in our Risk Management Regulations to
immediately establish a Risk Response Headquarters and correspond thereto. In ﬁscal 2019, we implemented a training for an establishment of a Risk Response Headquarters at Hiroshima Head Oﬃce, in conjunction with the emergency response drill at Otake Plant implemented every year as BCP / disaster management. Under the assumption of the response dill that an earthquake measuring 6 on the seismic intensity
scale hit Otake Plant, the Plant would have little reserve to manage the risks as the activities such as lifesaving and ﬁreﬁghting have a top priority to take care. In order to cover this, we established a Risk Response Headquarters at Hiroshima Head Oﬃce (it was assumed that the oﬃce was not directly aﬀected by
the earthquake) and did the training of conﬁrming the safety of employees within the whole of our company, determining the damage situation, examining countermeasures, publicity activities.

Environment
and Safety2）Compliance◆Training for an establishment of a Risk Response Headquarters◆

Product Quality

Operational Departments

Monitoring
and audit

In ﬁscal 2019, we formulated the Basic Plan as a result ofidentiﬁcation of risks and assessment of risks in each responsible department through the activities including workshops byrepresentatives from several departments within every businesssite and meetings by all members of respective departments.
Thanks to these activities, we believe that we could avoid omissions of risks and could implement adjustments of risk assessScene from the workshop to identify the possible risks.
ments among responsible departments. In ﬁscal 2020, we will
promote risk mitigation activities by implementing countermeasures along the Basic Plan.

Topics ofBusiness Activities

Operational audit

Representative
Directors

Appointments
and dismissals

Financial Auditors

Outside Legal Experts

Internal Audit
Department

Board of Corporate
Auditors

Management

Monitoring andaudit

Special ReportⅢ

Risk Management Committee

Board of Directors◆Formulation of the Basic Plan◆

Appointments and dismissals

Special ReportⅡ

Compliance Committee♦Eﬀorts in ﬁscal 2019

General Meeting of Shareholders (The supreme decision making body)
Advisory Appointments and dismissals

Having established Risk Management Committee (which is chaired by president and representative director& executive oﬃcer) composed principally of executive oﬃcers, TODA KOGYO Group regularly discusses its
risks that are becoming apparent. In addition, having established responsible departments for respective risks(such as disasters etc. / BCP, product quality, procurement, information security) surrounding TODA KOGYO
Group since ﬁscal 2019, the group makes eﬀorts for theformulation of basic plans, the implementation of meaBoard of Directors
sures and the evaluation & improvement at the responReport
sible departments concerned. Risk Management PromoChairman: President
tion Committee which consists of managers and mem: Executive oﬃcers & others
Risk Management Committee Members
Initiatives: Assessment of the risks that are becoming
bers of responsible departments for risks, shares theapparent within TODA KOGYO Group
progresses and the problems in each activity andInstructions for
Reportcorrections
reports them to Risk Management Committee. Having
Chairman: General Manager of Corporate Planning Department
Members: Managers and members of departments responsible
received said report, Risk Management Committee apfor risk management.
Risk Management Promotion Committee
Initiatives: Implementation of countermeasures for respective risks
propriately conducts corrective actions and reports on(such as disasters etc. / BCP, product quality, procurement,
information security) surrounding TODA KOGYO Groupthese risk management activities to the Board of Directors., As a result, the Board of Directors is promoting the establishment of the general management system
where the risks of the entire TODA KOGYO Group are exhaustively and continuously monitored.

Message from the President/
Special ReportⅠ

Report♦Risk management system

Product Group
Familiar to Consumers

TODA KOGYO adopts a form of corporate governance system based on the framework of governance by
the General Meeting of Shareholders , the supreme decision-making body, the Board of Directors , a decision- making body concerning the execution of important operation and the Board of Corporate Auditors ,a supervising body for business operation.
In addition to regular meetings once a month of the Board of Directors, an extraordinary Board of Directors
is held as necessary for business needs, enabling us to make quick and appropriate management decisions.
In addition, by utilizing three outside directors, we recognize that the mutual monitoring and supervision of
the execution of duties by directors function more eﬀectively. Moreover, by means of implementation ofaudits of the Board of Directors and other important meetings, by the Board of Corporate Auditors including
three highly independent outside auditors, we ensure the system of monitoring and supervision for the execution of operation with high objectivity and neutrality.
In order to enhance corporate governance by strengthening fairness, transparency and objectivity of procedures concerning nomination and remuneratio. of directors and executive oﬃcers, the Board of Directors adopted the resolution to establish Nomination & Remuneration Advisory Committee as a voluntary advisory
body to the Board of Directors on April 24, 2020. Currently, in response to requests from the Board of Directors, Nomination & Remuneration Advisory Committee discusses matters including the appointment & dismissal of directors and executive oﬃcers and matters related to remuneration thereof, and report to theBoard of Directors.

Business Contents
and History♦Initiative System

Nomination & Remuneration
Advisory Committee

Management Principle
and CSR Policy1）Corporate GovernanceRisk Response Headquarters established at the Head Oﬃce

Scenes from checking the extent of damage and a request for support. between Otake Plant (left) and Head Oﬃce (right)

15

Topics of Business Activities

Operatingincomeﬁscal 2018

ﬁscal 2019

Sales

193

179

113

Strategic
businesses

159

142

Strategic
businesses

Dielectric materials

194
Strategic
businesses

Market: Expanding into products related to CASE and 5G fromproducts related smartphones and electric vehicle
Quality targets: High permittivity and easy dispersibility

Cathode materials for Lithium ion rechargeable battery
Market: Electric vehicle and hybrid vehicle
Collaborations with business partners such as BASF

2017

2018

2019

Trend of the ratio of sales of the strategic businesses in the net sales of electronic businesses (from ﬁscal 2017 to ﬁscal 2019)◆Main initiatives: Initiatives for Sustainable Development Goals (SDGs)◆

In order to promote activities for achieving SDGs through business and governance across TODA KOGYO
Group in accordance with the principle of SDGs related to economy, society and environment that shouldbe achieved by the international community by 2030, we formulated TODA KOGYO Group, Environmental Vision 2033 . We are promoting the environmental conservation activities under the concrete numericaltargets. Concerning one of ﬁve focuses for environmental management, Supply of environmentally harmonized products and technologies , we manufacture and sell iron oxide combustion catalysts, TIC , puriﬁer
for remediation of soil and groundwater, RNIP . Concerning Initiatives for the formation of recycling-oriented society and Eﬀective use of industrial waste , we are proactively promoting activities centered onreuse of inorganic waste by taking advantage of our years of experience.

Five Pillars of Environmental Management

Environment
and Safety

TODA KOGYO Group
Environmental Vision 2033

Product Quality(1) Initiatives for biodiversity(2) Reduction greenhouse gas emissions

Society(3) Supply of environmentally harmonized products and technologies(4) Initiatives for the formation of a recycling-oriented society(5) Eﬀective use of industrial waste

Organization Chart/
Offices and Subsidiaries

16

Market: Expanding into applications for the next-generation
automobiles (pump, sensor, etc.)
Quality targets: Strong magnetic force and high heat resistance

Topics ofBusiness Activities

Business environment both in the global economy and Japanese economy in ﬁscal 2020 is particularly aﬀectedby COVID-19. Although large-scale economic support packages by various countries are being implemented,
the diﬃcult economy in ﬁscal 2020 which is much harder than that in ﬁscal 2019 is expected.
Under the inﬂuence of the stagnation of economy & supply chain in the world, and the delay of the operation
behind the schedule by our customers that manufacture ﬁnal products as well, operating rates for production
facilities in production bases within TODA KOGYO Group have not increased. Our company is working on
countermeasures to decrease the impact. We will continue to implement necessary measures corresponding torapidly changing market conditions.
As shown in the above ﬁgure, during the ﬁrst half of ﬁscal 2019, under the stagnation of the global economy
caused by the US-China trade friction, there was a slowdown in the demand owing to the adjustment ofoverstock in the market of electronic materials. However, during the second half of ﬁscal 2019, there were signsof demand recovery centered on 5G-related products and smartphones. Thanks to the acceleration of the
popularity of 5G, the progress in IoT in the ﬁeld such as automobiles, consumer electronics and industrial
instruments as well, we encountered the situation where market expansion in the medium term is expected.

（Unit: 100 million JPY）

Magnet materials

Management♦Initiatives in ﬁscal 2020 (April 1, 2020 - March 31, 2021)

Sales in electronic businesses

Special ReportⅢ

300
10,000The business environment remained un9,267
238
8,925
8,565
9,000
8,425
8,397
8,171
predictable during ﬁscal 2019, mainly
200
8,000
8,265
reﬂecting US-China trade friction, the
92
81
100
7,486
7,000
46
slowdown of the Chinese economy and
6,0000
the problem of British exit from the EU.
1Q
2Q
3Q
4Q
1Q
2Q
3Q
4Q 5,000▲100
4,000
Moreover, since the end of 2019, there
▲112
▲113
3,000
▲200
was further growing concern on the global
2,000
▲222
economic slowdown under the inﬂuence of
▲300
1,000
▲322
the spread of COVID-19. Within TODA
▲400
0
US-China trade friction
KOGYO Group, although there was thethe slowdown of the Chinese economy
Strengthening approach for improvements in
Signs of market recovery by steady increase insales growth of battery-related materials
proﬁtability and productivity by cost reduction
5G market and reduction of US-China trade friction
and cost analysis
due to the expansion of the market of lithiSpread of COVID-19
um ion rechargeable batteries, demand in
Trends of the sales and operating proﬁt during ﬁscal 2018 and ﬁscal 2019Japan and overseas of main business suchas magnet materials and coloring materials, remained stagnant caused by the economic slowdown in many
parts of the world such as in China. Therefore, the sales, the operating loss, the ordinary loss and the net loss
attributable to owner of parent were 33,147 million JPY, 611 million JPY, 1,307 million JPY and 5,285 million
JPY, respectively.

Promotion of the strategic businesses

Special ReportⅡ（Unit: million JPY）

Having named three businesses included in electronic businesses Cathode materials for Lithium ion battery (LIB) , Magnet materials and Dielectric materials as strategic businesses, we will continue tostrengthen the eﬀorts.

Message from the President/
Special ReportⅠ♦Business Overview of ﬁscal 2019
(April 1, 2019 - March 31, 2020)◆Main initiatives: Initiatives for strategic businesses◆

Product Group
Familiar to Consumers

With a mission to contribute to solving social issues through business activities , TODA KOGYO Group has
achieved growth by responding to social issues and the most advanced needs of the time. Recently, we support the basic infrastructure of industry by having close relationships with many industrial ﬁelds including automobile, electronics, etc. through our materials. Signiﬁcant changes such as the evolution of the next-generation automobiles in line with the guidelines, CASE (Connected, Autonomous, Shared & Services and Electric)
and the fast pace development of information & communications ﬁeld, as represented by 5G (5th generation
mobile communication system), have started to occur toward the social environment in the future. We not
only solve customer issues, but also deal with our own problems and predict issues which we will be facing in
the future. By combining abilities of materials, our own abilities and our partners abilities, we will solve these
problems and continue to create new values.
In January 2020, we formulated Toda Spirits that summarize basics of manufacturing in order to further
increase the strength of our company. We will promote business activities which further contribute to a society.

Business Contents
and History♦Basic Policy for Business Activities

Although the recovery of demand is delayed due to the inﬂuence of the spread of COVID-19, we expect therecovery after the calming down of the inﬂuence. We will also establish production capabilities so as torespond appropriately to the expansion of demand. With Expansion of business , Enhancement of a highly
proﬁtable structure and Improvement of management foundation as keywords, we promote our activities
for a further improvement in performance.

Management Principle
and CSR Policy1）Business Overview and Business Activities

17Topics of Business Activities♦Toda United Industrial (Zhejiang) Co., Ltd.
Toda United Industrial (Zhejiang) Co., Ltd. which has fouraﬃliate companies, manufactures and sells pigments andﬂexible containers. Although doing business partly withcompanies of TODA KOGYO Group, the company mainly
deal with clients across the world and in China.

The company does three businesses, ①Importing and selling
TODA KOGYO s products such as pigments, magnet
materials, functional materials from Japan ②Exporting raw
materials, and facilities from China ③Environment-related
facilities. The company will continue to support Monozukuri(manufacturing) of our Chinese group companies as a pointof contact to TODA KOGYO Group in China.

Message from the President/
Special ReportⅠ
Special ReportⅡ

The employees participated in the weeding activity in theforest during Ching Ming Festival in April 2020
Ching Ming Festival (as shown in the photo).

〜 Community interaction 〜Society
Organization Chart/
Offices and Subsidiaries

Zhejiang Toda DMEGC Magnetic Co., Ltd. is a joint venturecompany in which 50% of equity contributed and owned by
TODA KOGYO CORP.. The company manufactures and sells
Ferrite magnetic powder. The company sells products to its
parent companies both in Japan and China, as well as doing
business with newly developed clients by its own.

Environment
and Safety♦Zhejiang Toda DMEGC Magnetic Co., Ltd.

〜 Community interaction 〜
As one part of our community interaction, the employees
participate in the softball league organized by Japanese
association of Shenzhen.

Product Quality♦TODA MAGNET (SHENZHEN) Co., Ltd.
TODA MAGNET (SHENZHEN) Co., Ltd. mainly
manufactures rubber magnets for fan motors with productionof about 60 tons per month. At the worksite, over twenty
employees work at the process including mixing, sharing,rolling and cutting. The sales area is limited inJapanese-aﬃliated companies located in China.

Employees of the company participated in Walkathon in
Dongyang China Woodcarving City organized by Dongyang city.

18

Zhejiang Huayuan Pigment Co., Ltd. is a joint venturecompany in which 22.5% of equity owned by TODA KOGYOCORP. . The company manufactures and sells pigments anddoes business on pigments with each company of TODA
KOGYO Group.

Topics ofBusiness Activities

Since its opening in September 2003, the company has been amanufacturer of magnetic compounds, engaging in part ofelectronic business of TODA KOGYO Group. As magnet
materials for various motors and sensors, the magnetic
compounds contribute to society in a variety of ﬁelds such as
consumer electronics and automobiles.
Because it s at time of great change, the company itself
intends to ﬂexibly change and to respond to customers
requests.

♦Zhejiang Huayuan Pigment Co., Ltd.

Management〜 Safety policies 〜
Since its foundation in 2007, thecompany has been operating
policies of Safety ﬁrst, Prevention
centric approach, Integrated
management, All employees'
participation, Environmental
improvement, Healthmanagement, Scientiﬁc operations
management and Continuation &improvement . The company isaudited and evaluated in thewhole company by a third party
experts every year, andimplements various types of safety
trainings on a companywide basis.

♦Toda Plastic Magnet Material (Zhejiang) Corp.

Special ReportⅢ♦Toda Magnequench Magnetic Material (Tianjin) Co., Ltd.
The company was established in 2007 as a joint venture
between TODA KOGYO CORP. and Magnequench
International, LLC. Located in Wuqing district in northwesternpart of Tianjin, the company mainly manufactures and sells
rare-earth compounds for injection molding.

Product Group
Familiar to Consumers〜 Regional contribution activity 〜♦TODA (CHINA) Co.,Ltd.

Business Contents
and History

We mainly develop business of materials for electronic components and pigment business in China. We manage
four companies (Toda Plastic Magnet Material (Zhejiang) Corp., Zhejiang Toda DMEGC Magnetic Co., Ltd.,
Toda Magnequench Magnetic Material (Tianjin) Co., Ltd. and TODA MAGNET (SHENZHEN) Co., Ltd.) as
business bodies of materials for electronic components. We also manage two companies (Toda United Industrial(Zhejiang) Co., Ltd. and Zhejiang Huayuan Pigment Co., Ltd.) and a （100 million JPY）
trading company (TODA (CHINA) Co., Ltd.) as business bodies of100
77.6
pigment business.
While pioneering its markets respectively, each company also plays a
50role of completion within the company group by supporting its supply
16.6
0.2
chain with each other. Since establishing our ﬁrst Chinese site and0starting full-scale business expansion in 2003, the business scale in
2003
2010
2019 （FY）
China has expanded and the business ﬁelds & the number of aﬃliatesof the sales volumes of consolidated subsidiaries in China(※)
have been increasing year after year. Although net sales in the ﬁrst year Trend(※) Consolidated subsidiaries in China; Toda Plastic Magnet Material (Zhejiang) Corp.,
Toda Magnequench Magnetic Material (Tianjin) Co., Ltd.,was 20 million JPY (the simple total of the sales of consolidated TODA MAGNET (SHENZHEN) Co., Ltd., Toda United Industrial (Zhejiang) Co., Ltd.,subsidiaries prior to consolidation elimination), the net sales have and TODA (CHINA) Co., Ltd.)
steadily increased, reaching 1,660 million JPY in 2010 and 7,760 million JPY in 2019, respectively.
Business contents of each business site, and examples of community interaction thereof are described below.

Management Principle
and CSR Policy2）Expanding Businesses in China

19

Product Quality

Onoda Plant

Onoda Plant

10%
57%

6%

1%

5%

Toda Pigment
Corp.

62%

6%

Tokyo Shikizai
Industry
74%

Details of customer inquiries at each business site

SupportToda Pigment Corp.

Safety/Quality

Quality education
Human resources
development

Other manufacturingaﬃliates4）Small Group Activities
Within TODA KOGYO, we recognize the ideal form of the production site at each workplace of eachplant, under the slogan No eﬃciency without safety. No trust without quality. No growth without innovation (improvement). We also actively implement small group activities in cooperation with subcontracting companies toward achieving the issues.
In order to share problems and encourages active communication among all employees, we have also
been promoting 5S activities by small groups that are elected to conduct the activities of special zoneof 5S as role models in each workplace since ﬁscal 2016.
We expanded the scope of activity theme not only to productivity improvement and quality improvement, but also to environmental conservation and preservation of safety. Through these activities, we
improve awareness / knowledge of employees and cultivate healthy relationship among employees. We
also lead to the sharing of know-hows between workplaces by implementing presentation meetings.

Organization Chart/
Offices and Subsidiaries

Sales Departments

Tokyo Shikizai
Industry Co., Ltd.

Monozukuri
Promotion Center

Society

Reporting of
Quality
Guidance
corrections
audit
Information
gathering

Communication ofcomplaints etc.

20

10%

2%

Environment
and Safety

Otake Plant

Otake Plant

14%

4%

22%

■Others

Product Quality

Onoda Plant

16%

12%

■BCP related

Topics ofBusiness Activities

Technical support■Environment / quality system

Management

5%■Conﬂict minerals

Special ReportⅢ

Consultation

Horizontal
deployment■Chemical substance related

3%

Reporting

Quality Assurance Committee (Quality Assurance Department)
Research &Development Division

Special ReportⅡ

Supervision

Otake Creative R&D Center

TODA KOGYO Group is trying to respond to customers inquiries regarding the products, CSR, etc.
promptly and with sincerity, for the purpose of maintaining and improving the quality of our products.
We strive to resolve the issues identiﬁed in the responses to customers inquiries, in cooperation
with the relevant departments.
In ﬁscal 2019, we responded to about four inquiries per day sincerely, mainly on inquiries related tochemical substances as shown in the ﬁgure below.

72%

Management Conference(TODA KOGYO)

ISO14001３）Situation regarding Customers Inquiries

11%

System chart of Quality Assurance

TODA MAGNET (SHENZHEN) CO., Ltd.
Otake Creative R&D Center:
Product Development Group

Toda Pigment Corp.
TODA Ferrite KOREA Co., Ltd.
TODA ISU CORPORATION
Toda Magnequench Magnetic Material (Tianjin) Co., Ltd.
Toda Plastic Magnet Material (Zhejiang) Corp.
Zhejiang Toda DMEGC Magnetic Co., Ltd.
Zhejiang United Pigment Co., Ltd.
Toda America Incorporated
Toda Kogyo Asia (Thailand) Co., Ltd.

Otake Plant

8%

Identiﬁcation of causes of complaints
etc., planning and implementation of
measures to prevent recurrence ofcomplaints etc., conﬁrmation ofprogress and horizontal deployment

ISO9001

Message from the President/
Special ReportⅠ

1. We perform quality audits for the purpose of conﬁrming compliance with requirements in the ISO9001 series and improvement of thequality assurance systems.
2. We conﬁrm the status of compliance with laws, regulations and other requirements.
3. In order to improve the qualities of products by TODA KOGYO Group, we promote comprehensive quality improvement by means ofanalyzing qualities, providing improvement guidance for related departments and holding regular quality review meetings (Quality
Assurance Committees).
4. We make eﬀorts to strengthen the quality assurance system of overseas operating companies.
5. We promote the human resources education so as to enhance Genbaryoku (capabilities to ﬁnd and solve problems in the workplaces).

ISO9001
ISO14001

Product Group
Familiar to Consumers２）Quality Assurance Activities

ISO9001
ISO14001
ISO45001

Business Contents
and History

TODA KOGYO Group determines the quality policy; Provide qualities which obtain the customers trust and satisfaction by
developing continuous improvement activities in accordance with Toda Spirits which consist of six spirits of Monozukuri*), andpromotes the quality assurance activities as shown below. Quality Assurance Department as a promoter, is an organization that is
independent from sales, development and manufacturing departments, placed under the direct control of the President, so as to promote quality assurance activities from a neutral standpoint, more eﬀectively.
Quality Assurance Department organizes Quality Assurance Committee, shares information with the quality assurance departmentof each TODA KOGYO Group s plant, and has established a system to resolve quality issues throughout the entire company. In
addition to performing quality audits for the manufacturing departments of TODA KOGYO Group, Quality Assurance Department
quickly grasps complaints and claim information delivered to sales departments from customers, and timely responds to the important concerns. Quality Assurance Department also identiﬁes causes of individual complaints, claims, etc. Moreover, Quality Assurance Department plans and implements measures to prevent recurrence of complaints, claims, etc. and performs veriﬁcations andhorizontal deployment of them from the perspective of workplace.
In ﬁscal 2020, we promote prevention activities by strengthening risk management. In addition, by cooperating with Monozukuri
Promotion Center that was established based on the idea that "Human resources development through Monozukuri" within Human
Resources Development Department, we will work on human resources development and deepen quality assurance activities.
*) Monozukuri means manufacturing.

TODA KOGYO Group has acquired certiﬁcation under the following management systems andimplements the PDCA cycle in its business activities.

Management Principle
and CSR Policy◆Situation regarding Introduction of Management Systems

１）For Improving Product Quality

21

Environment and Safety◆Promotion of Environmental Vision 2033

（t/y）

CO₂ gas emission(scope 1+2)

２）An international NGO, Carbon Disclosure Project (CDP) s climate change questionnaire

2017

D score2019

C score（%）

Recycling rate

Investor etc.
Environmental
Information Disclosure System

IR Library
EconomyCSR Report
Environmental Repor
Environment / Society

Report on
corporate governance
Governance４）CSR Rating of TODA KOGYO Group by a third party rating organization, EcoVadis SAS
In TODA KOGYO Group, CSR, Environment & Safety Department, CSR Committee and Environment Committee primarily promote CSR activities.
Our CSR activities are rated by a third party rating organization, EcoVadis SAS.
The EcoVadis Rating covers four themes; Environment, Labour & Human Rights,
Ethics and Sustainable Procurement. The ratings on twenty one issues that belong
to the four themes, respectively, are done in accordance with international CSR
standards such as the principles of the United Nations Global Compact, the agreements of the International Labour Organization (ILO), the Global Reporting Initiative (GRI) standards, ISO 26000 and Coalition for Environmentally Responsible
Economies (CERES) principles.
Our CSR activities in 2019 and 2020 were awarded SILVER Medal and BRONZE Medal, respectively.

Organization Chart/
Offices and Subsidiaries（FY）

In order to facilitate ESG (environment, society and governance)
investment to our company, we registered IR library, CSR report,
environmental report and report on corporate governance on Environmental Information Disclosure System. We started dialogues withinvestors etc. through ESG Dialogue Platform .

Company

Society22

D scoreEnvironment
and Safety

TODA KOGYO Group sets following targets related to industrial waste under Environmental Vision 2033. By
recycling of industrial waste, we will achieve the ﬁnal waste disposal (landﬁll disposal) amount zero. (ﬁscal
2033 as our target year)
・a 30% reduction in industrial waste compared to the 2013 level・an achievement of a recycling rate of 100%

（FY）

2018

Product Quality

Sodium carbonate manufacturing plant♦Eﬀective use of industrial waste♦

Volume of waste generation

D score３）Registration for the participation in the Environmental Reporting Platform Development Pilot Project (Ministry of the Environment)

2NaOH ＋ CO₂ → Na₂CO₃ ＋ H₂O

（t/y）

2016

Topics ofBusiness Activities

At Onoda Plant, TODA KOGYO CORP., a technology for manufacturing the raw material, high-purity sodium carbonate with utilizing the exhaust gas from boilers and sodium hydroxide (Japanese
Patent No.3114775) was developed in-house, and a sodium carbonate manufacturing plant was constructed in 1993. As a manufacturing capability, a maximum reduction of CO₂ gas emission is 3,600t/y. At present, high-purity sodium carbonate used in Onoda Plant,
is manufactured by fully automated and unmanned operation.
By means of an analysis of the reaction rate and a simulation program, it is possible to predict the operation status accurately. The
manufacturing system is operated under optimized conditions.

Since 2016, we have been responding to CDP s climate change questionnaire and disclose initiatives for climatechange to institutional investors etc. Having formulated Environmental Vision 2033 in 2019, the score of ourinitiatives stepped up from previous D to C, by means of changing previous passive initiatives with active ones.
We identify increasing environmental risks and new opportunities, and reﬂect them in management strategies.
A score: Leadership, B score: Management, C score: Awareness, D score: DisclosureManagement（FY）

Special ReportⅢ

TODA KOGYO Group sets following targets related to reductionof greenhouse gases under Environmental Vision 2033. (2033 as
our target year)
・a 20% reduction in energy consumption rate compared to the 2013 level・a 10% introduction of renewable energies into the total energy consumption
・a 30% reduction in GHG (Greenhouse Gases) emission compared to the 2013 level・a 30% reduction in CO₂ gas emission during transportation and commuting
to work compared to the 2013 level

Special ReportⅡ♦Reduction of greenhouse gases♦

As an obligation of the manufacturer in accordance with Basic Act
on Establishing a Sound Material-Cycle Society, the Law for the Promotion of Eﬀective Resources and the Green Purchasing Law, wetake necessary measures to reduce the waste etc. produced from raw
materials etc. in carrying out business activities. If raw materials etc.
can be Circulative Resources in the business activities, we ourselves
take necessary measures in order that they are cyclically reused properly. We ourselves also promote the formation of a recycling society
Iron sulfate manufacturing plantby using recycled materials etc., and cooperate with the measures forestablishing a sound material-cycle society, implemented by nationalor local public authorities. At present, the main raw material iron sulfate is manufactured in-house from discarded sulfuric acid and scrap steel in Onoda Plant, TODA KOGYO CORP.

Message from the President/
Special ReportⅠ

Toward 100th anniversary of establishment of our company in 2033, TODA KOGYO Group formulated Environmental Vision 2033 , as a result of discussion on a desirable state as TODA KOGYO at 2033 among executives and employees, from the view point of four principles of sustainability. The Environment Committee (composed of domestic group companies) which is under the control of the CSR, Environment & Safety Department
placed under the direct control of the President is promoting Environmental Vision 2033 .

♦Initiatives for Establishing a Sound Material-Cycle Society♦

Product Group
Familiar to Consumers

TODA KOGYO Group conducts environmental management based on the ISO14000 series, and not only recognizes environmental conservation as the mission imposed on global citizens, but also considers environmental
conservation activities and management activities coaxial. We take responsibility for Environmental Vision 2033,
formulated as a desirable state of TODA KOGYO, and work on these activities across the entire group, as well as
conducting active disclosure of information and communication with local residents through Responsible Care .

Business Contents
and History◆Basic Environmental Policy

The Government of Japan sets the target to be achieved of an 80% reduction in GHG emission compared to
the 2013 level by 2050. Innovation in each industry and collaboration which exceeds the boundaries between
types of industry are indispensable for the achievement of the target.
Under Environmental Vision 2033, we evaluate products and technologies supplied by TODA KOGYO Groupby classifying them into three categories (Excellent: environmentally harmonized, Good: environmentally conscious, Acceptable: standard). And we strive to make all the products and technologies supplied by TODA
KOGYO Group to be classiﬁed into the category of Excellent: environmentally harmonized by 2033.

Management Principle
and CSR Policy♦Development of environmentally harmonized products and technology♦1）Reduction of the Environmental Load

23

Environment and Safety◆Green Procurement「Guidelines」

45

94%

Operational results of the CSR self-check sheet in ﬁscal 2019

Apr. May Jun. Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar.

2019

2020

For inquiries concerning security export control of our products or related technology, please contact our technical / sales representative who is convenient. Because security export control is under the control of the CSR, Environment & Safety Department directly managed by the President, you can also contact to our Head Oﬃce forsuch inquiries.

Customers♦System of Security Export Control♦

SurveyExecutive Export Control Oﬃcer

Export Control Oﬃcer

1.Initiatives for
product quality

2.Considerations
for environment

3.Respect forhuman rights

4.Safety andhealth

5.Sound business6.Business
management
continuity plans

Totalevaluation

Person in charge of Onoda Plant

Person in charge of Otake Plant

Person in charge of Otake
Research & Development Division

Person in charge of Fine Material
Business Division

Department in charge : Procurer
Shipping person

Department in charge : Procurer
Shipping person

Department in charge : Procurer
Shipping person

Department in charge : Procurer
Shipping person

Organization Chart/
Offices and Subsidiaries

48

0

Society

Totals20

Environment
and Safety

Number of Number of Response
issuesanswers
rate

40

Product Quality

FY2019

（%）
100
98
96
94
92
90
88
86
84
82

60

Topics ofBusiness Activities(1) Distribution of the CSR self-check sheet(3) Issuance of a feedback sheet

80

Management

TODA KOGYO
Group（cumulative values）
100

Security Export Control
Number of issued Parameter Sheets◆Inquiries concerning security export control（2）Responses using the CSR self-check sheet
Report of the eﬀorts

Business
partners

TODA KOGYO Group has established the internal Security Export Control Regulations, anddeclares not only to comply with laws and regulations but also to contribute to maintain international peace and security.
In order to prevent weapons and military-transferable cargo / technology from going to countries or
terrorists that threaten the security of the international community, TODA KOGYO Group conducts
export controls in good faith based on Foreign Exchange and Foreign Trade Act and other applicable international and foreign laws and regulations
when exporting and providing our products, ourtechnical information, etc.

Special ReportⅢ

According to our internal purchasing regulations, it is obligated to implement business partner surveys. In the surveys, from various aspects such as quality assurance, supply capability, BCP / BCM, environmental conservation,
human rights, compliance with laws and regulations, social contribution, we receive responses from our business
partners and share common values. Through these eﬀorts, we aim to acquire trust, expectations and security ofcustomers, shareholders and society. Since ﬁscal 2019, having been asking our major business partners to respondto the CSR self-check sheet (in Japanese, English and Chinese) every year, we issue feedback sheets for them. We
ask our major business partners to implement improvements in CSR through the application of the PDCA *cycle.
*) PDCA means plan, do, check and act.
We promote sustainable procurement in cooperation with everyone in the supply chain.

6）Security Export Control

Special ReportⅡ◆CSR procurement

Reference environmental labels etc.

Message from the President/
Special ReportⅠ

1. Compliance with laws and regulations: In all activities related to procurement we comply with laws andregulations and conduct fair transactions.
2. CSR: In addition to recognizing the responsibility as better citizens and doing our CSR activities, we
collaborate with business partners who share similar ambitions and fulﬁll our social contribution.
3. Green procurement: We conduct purchase transactions, in accordance with the procurement policies thatconsider resource conservation and environmental conservation.
4. Fair and impartial transactions: We widely open the trading market and conduct purchase transactions, basedon impartial and fair standards both domestically and abroad.
5. Selection of business partners: We comprehensively evaluate quality, price, delivery time, etc. presented bybusiness partners. Considering the promotion of cost reduction activities, the possibility of providing newmaterials and new technologies, etc., we make selection based on economic rationality.
6. Regarding purchase transactions, we always focus on solidity and do not conduct speculative transactions.
7. We strictly manage documents and information provided in purchase transactions.

Product Group
Familiar to Consumers

TODA KOGYO Group shares global values with respect to "Human Rights", Labour", "Environment" and "Anti-Corruption" stipulated by the United Nations Global Compact and follows "Procurement Policy", "Guidelines"
and "Basic Policy concerning Conﬂict Minerals" (disclosed on our website). We also improve our business competitiveness and corporate value by enhancing sustainability with business partners, and aim to contribute to society.

Business Contents
and History◆Policy

Designated procurement items under Act on Promotion of Procurement of Eco-Friendly Goods and Services by
the State and Other Entities (also known as the Green Purchasing Act) started from 101 items in 14 ﬁelds in ﬁscal
2001 and increased to 275 items in 21 ﬁelds in ﬁscal 2018. (Cabinet decision in February 2018) With referring to
the "Public Procurement Guidelines for Green Purchasing (February 2018)" published by Japanese Ministry of theEnvironment, and by means of taking into account chemical substance management, energy saving, resourcesaving, recycling, packaging materials, ease of regeneration / disassembly / treatment, impact on ecosystem, etc.,
we procure products and services which are considered to reduce the environmental load.
Covered items: paper, stationery, home appliances, oﬃce equipment, water heaters, lighting, working clothes, airconditioners and ﬁre extinguishers

Management Principle
and CSR Policy5）Sustainable Procurement

Results of the CSR self-check answered by the suppliers

24

25

Environment and Safety

Course on heat stroke

One accident causing lost work time occurred in the entire group in ﬁscal 2018. Cooperating with CSR,
Environment & Safety Department, Monozukuri Promotion Center and safety and health committees ineach plant, we will continue to promote activities for the purpose of the elimination of industrial accidents.

Special ReportⅡ

Trend of rate of accident causing lost work time in TODA KOGYO Group
Rate of accident
causing lost work time

TODA KOGYO Group

3.0

Average value of data of various industries
investigated by Ministry of Health, Labour and Welfare

2.0

Course on traﬃc safety◆Activities in the Safety workshop

1.5
1.0

2012

2013

2014

2015

2016

2017

2018

2019

FY

◆Safety Activities◆Emergency response drill

Environment
and Safety

Since we handle inﬂammables such as heavy oil, kerosene, LPG and hydrogen gas in large quantities at each
worksite, there are risks of ﬁre, explosion and pollution due to outﬂow of chemical substances. In order to preventthe development of these potential risks, we carry out daily and periodic inspections and improve our safetysystem. Emergency response drills are held every year at the worksites. Conducting drills for evacuation, rescue,ﬁreﬁghting, etc., assuming ① personnel damage , ② ﬁre occurrence and ③ damage to buildings due to an
earthquake etc., we make eﬀorts to be able to respond more properly. We also promptly share information bypromoting collaboration with Risk Management Committee set up at Head Oﬃce.
Photos of emergency response drills implemented at each workplace are shown below.

Product Quality

In Onoda plant and Otake plant, we hold a "Safety Convention" every year before the National Safety
Week and the National Health Week. We invite lecturers from Ube Labour Standards Inspection Oﬃce at
Onoda Plant and Hatsukaichi Labour Standards Inspection Oﬃce at Otake Plant respectively, in order to
get lectured on disaster trends and disaster prevention plans together with the employees, and to raise employee's awareness of safety. We recognize the lectures as opportunities to reconﬁrm the results of disasteroccurrences in the previous ﬁscal year. We also reconsider the goals for the current ﬁscal year and set
them.

Topics ofBusiness Activities* Rate of accident causing lost work time: This means the number of casualties caused by industrial accidents
per 1 million actual working hours, and expresses the frequency of industrial accidents.

Since ﬁscal 2014, we have been holding the Safety workshop for all employees within TODA KOGYO Groupand subcontracting companies. Experiential educations for almost all target persons were completed by the end ofﬁscal 2019.
In this workshop, we hold courses in the classroom on 5S and Danger prevention training that are regarded
as basic of safety.
Moreover, by means of adopting eight experiencing devices, the safety education so as to experience the importance of safety( What is danger? , Notice of dangerous situation , etc.), based on the sensations of seeing,
touching and thinking , is implemented. Through the simulated experiences and experiences of dangers by participants themselves, participants experience the actualization of risks in workplaces. We will continue to provide
participants with opportunities to raise sensitivity to dangers, mainly as a training for new employees.

Management

0.5
0.0

Lecture regarding health care by
an industrial physician

Special ReportⅢ

Special education for the prevention of
hazards due to dust

2.5

Message from the President/
Special ReportⅠ

Reeducation of safety training of
forklift truck operation etc.

◆Data on industrial accidents

Product Group
Familiar to Consumers

By implementing courses focusing on priority themes set for each work site from time to time; such as Courseon danger prevention training , Course on heat stroke , Special education for low pressure electricity handling ,Special education for the prevention of hazards due to dust , Reeducation of safety training of forklift truck operation etc. , Basis of
GHS(Globally Harmonized System) and preparation methods of labelling & SDS(Safety Data
Sheet) , Course on traﬃc safety , etc., TODA
KOGYO Group strives to disseminate the recognition on safety and health for the group employees.

Business Contents
and History

For the purpose of unifying the activities on occupational safety and health in the entire group, TODA
KOGYO Group operates safety and health activities with the following organizational system.
・Operation of the safety and health committees in each plant under the Central Summarizing Safety and
Health Committee
・Development of human resources through the education cooperating with Monozukuri Promotion Center
Under the above system, we promote to foster a corporate culture of safety and health for the entire
group.

◆Holding of various types of courses and seminars

Management Principle
and CSR Policy7）Occupational Safety and Health (Safety and Health Activities)

Society
Organization Chart/
Offices and Subsidiaries

Scene from a Safety Convention in Onoda plant

Scene from a Safety Convention in Otake plant
Scene from a ﬁre drill

26

Training to rescue injured persons

Scene from setting up a ﬁrst-aid station

Scene from training to spray water27

Society
Management Principle
and CSR Policy◆Outreach science lessons

1）Relationships with local communities

Cleanup activities of Egawa River adjacent to Otake Plant

Number of schools
Number of lessons

14
12
10
8
6
4
2
0

08

◆Scenes from outreach science lessons◆

10

12

14

16

18

Management

Beautiﬁcation activity, called
ﬂower-planting campaign
around Kuba Station (Otake city)

Topics ofBusiness Activities

Cleanup activities of the roadways
around Toda Pigment Corp.

Environment
and Safety

The 10th science exhibition in Sanyo-Onoda City was heldat Onoda Sun-Park on August 28 and 29, 2019. TODA
KOGYO has participated for four consecutive years since2016. We made a presentation of Let s make an easy-handmade motor! at the exhibition booth of TODA KOGYO on
August 28, 2019. We asked about 120 children to make a
motor. In order to entertain, surprise and impress children
through learning sciences, we will continue to implement theactivity.

Product Quality◆The 10th science exhibition in Sanyo-Onoda City
Scene from an activity in the boothSpecial ReportⅢ（The pictures of outreach science lessons are provided by the Japan Institute of Invention andInnovation Hiroshima Branch, a general incorporated association.）

FY

Special ReportⅡ

Cleanup activities around Otake Plant

16

Message from the President/
Special ReportⅠ

Cleanup activities of the
roadways around Onoda Plant

Number of outreach lessons

Product Group
Familiar to Consumers

Not only by means of implementing cleanup activities along rivers
and roads near each workplace, but also by means of participationin cleanup events of coasts and public parks organized by local
governments, TODA KOGYO Group actively promote environmental beautiﬁcation activities.

Business Contents
and History◆Environmental beautiﬁcation activities

Since ﬁscal 2008, TODA KOGYO has
implemented outreach science lessons
and events for elementary and middle
school pupils in Hiroshima prefecture.
Children experience the work of permanent magnets and electromagnets, andlearn that magnets are used in various
products in familiar lives, throughtouching various types of permanent
magnets, or through making easy-handmade motors using permanent magnets,
enameled wire coils and dry batteries.
As a result of these activities, we hopethat more children will be interested inscience and will become the bearers ofscience and technology in Japan in the
future.

Society
Organization Chart/
Offices and Subsidiaries

Exhibition booth of
TODA KOGYO

28

29

Society◆Koi, Koi-Festival in Otake

Section of business PR◆Endorsement for Green Greetings ProjectManagement
Product Quality
Environment
and Safety

Scenery of corporate exhibition

Society

The oﬃcial website of Green Greetings Project, 2020
https://www.green-greetings.com/

The poster of Green Greetings Project, 2020

Organization Chart/
Offices and Subsidiaries

30

Topics ofBusiness Activities[Exhibit contents]
1. Cosmetic samples (Application of nanoparticles)
2. Lithium ion battery materials for smartphone and personal computer
3. A top that keeps spinning (Magnetic materials)
4. IC tags (Wireless communication devices)
5. Not hot (?), no noisy (?) coating (Heat insulating and soundproof paint)

Special ReportⅢ◆Exhibition by companies at Hiroshima
University Open Campus

At Hiroshima University Open Campus (August 20 to 21, 2019), Cluster 3, School of Engineering carried out a company exhibition
for high school students. In order that theycan experience the wonder of chemical technology and how it works in concrete terms in
the world, member companies in the Chugoku region's chemical conversation party(Secretariat: Department of Chemical Engineering, Faculty of Engineering, Hiroshima
University) exhibited advanced materials,
technologies, interesting substances, etc.
which create "Chemistry Dream". TODA
KOGYO participates every year and conveys
the interests, wonders and dreams of chemistry to high school students.

Special ReportⅡ

Having converted to the ashes after the atomic bombing in 1945,
it was said that nothing green would grow in Hiroshima urban
areas in the next several decades. But recently, we can see thegreen and the most beautiful landscapes around Peace Memorial
Park and Peace Boulevard. There are about 160 trees that are
A-bombed in these green landscapes. Green Greetings Project
started on August 6, 2005 in order to save these A-bombed trees
for posterity. TODA KOGYO Group endorse this project that promotes conservation activities of A-bombed trees for world peace.

Message from the President/
Special ReportⅠ

presentations: 79 (A total in six ﬁelds ofphysics, chemistry, biology, geology, mathematics and information) Active presentations and discussions in the poster session
were developed. Ten presentations wererecognized as awards of excellence. TODA
KOGYO, as a supporting company, awarded one presentation as a special award. Allof the students are interested in natural sciences, brightened their eyes and answered
our questions. It is a valuable event inwhich we can conﬁrm their enormous potential. TODA KOGYO will continue to actively participate in the event.

Product Group
Familiar to Consumers（The pictures are provided by Hiroshima City University.）

Business Contents
and History

Koi, Koi-Festival in Otake (organized by
Otake city) was held at the Otake General Civic
Hall and around the Otake City Fire Department on November 10, 2019. TODA KOGYO
exhibits at sections of environment & businessPR every year and willingly communicates withthe local residents.

Hiroshima Prefectural Board of Education holds anannual Hiroshima Prefectural Scientiﬁc seminar , inwhich high school students in Hiroshima give presentations on the results of scientiﬁc research activities inclasses, science club, etc. In ﬁscal 2019, six supporting
companies including TODA KOGYO were invited, andthe seminar was held at Hiroshima City University on
February 8, 2020. The number of participating schools:
18, the total number of students: 252, and the number of
Scenes from poster presentations

Management Principle
and CSR Policy◆Participation in scientiﬁc research presentations
by high school students in Hiroshima

31

Society

TODA KOGYO Group seeks always to respect fundamental human rights which are premises ofmutual understanding. TODA KOGYO Group also does not discriminate on the basis of race, creed,gender, social status, citizenship, sickness, handicaps and any other unjustiﬁable reasons.

◆Oﬀ-the-Job Training

Stratiﬁed training, priority issue training, job-classiﬁed training, mental health training, training foroverseas assigned personnel, etc.

◆Self-development

Providing support to the correspondence self-education system (Individuals can optionally selectcourses. If they graduate with outstanding results, they are exempted from paying tuition fees.)

Organization Chart/
Offices and Subsidiaries

32

Enhancement of OJT system for new recruits (Training plans for trainee, and implementations of training for OJT trainers), implementations of safety and health / quality control educations, dispatches todomestic universities / research institutes, etc.

Society(1)Activities on recruitment of foreign nationals
We conduct promotion of employment of foreign nationals in our company. Currently, we hire eight
foreign nationals as regular employees. Since 2019, we started to participate in activities organized
by Hiroshima Prefecture, to encourage science and technology students from foreign country to ﬁnd
employment at companies in the prefecture. We are promoting the recruitment of talented humanresources from Asia and other regions.
(2)Training support for overseas subsidiary staﬀ
In order to raise the career of the local manager (foreign nationality) of the overseas subsidiary,
TODA KOGYO has conducted educational support since ﬁscal 2017. In ﬁscal 2019, we held atraining program on QC (Quality Control) for overseas subsidiary staﬀ at Otake Plant.
(3)Education for expatriates
For Japanese employees assigned to overseas subsidiaries, we conduct various training (basics ofcross-cultural business etc.) for smooth company management.

◆On-the-Job Training (OJT)

Environment
and Safety◆Eﬀorts concerning Respect for Human Rights◆

Assignments are decided in consideration of each recruit s wishes, aptitude and needs in thecompany. After that, the recruits gain a variety of experiences according to in-company job rotation.

Product Quality

By setting up a consultation counter for harassment consultation / complaints in the
Personal & General Aﬀairs Department, we take appropriate measures in accordance with
our internal harassment prevention regulations.

Decision of oﬃcial assignments (September)

Topics ofBusiness Activities

Consultation System

The training is intended to understand the company culture and the workplace atmosphere byon-the-job experiences for a long period. And it is also intended to contact directly with senior
employees etc.
After learning the basics of Monozukuri, R&D and marketing activities in production departments, Research & Development departments and sales departments, the recruits acquire professional knowledge on the job.

Management

We have established internal rules such as "Harassment prevention regulations", Regulations
concerning protection of personal information , Regulations for childcare and nursing care leave ,Regulations concerning leave due to personal illness and return to work , Stress check system
implementation regulations , Compliance promotion regulations , Compliance consultation system
in order to strive to respect human rights throughout our group.

Workplace training (4 months from May to August)Special ReportⅢ◆Enhancement of Company Internal Rules◆

The training is intended to switch the trainees from students to members of society in terms ofrhythm of life and mind. And it is also intended to learn the basics as oﬃce workers.
- Training at Zen-temple (Switching from students to members of society in terms of mind andrhythm of life which is to be done together with new recruits of other companies)- Business training (Starting with manners training, the recruits master the basics of "oﬃce workers" with good spirit and technique.)- In-company training (Lecture on company organization and products, learning about the company system and rules, plant tours, etc.)

Special ReportⅡ(1)Elimination of all discrimination
Executives and employees must respect the fundamental human rights of individuals and must notengage in any actions that ignore human rights such as discriminatory language, violence, sexual
harassment, power harassment.
(2)Protection of personal privacy
When contacting personal information inside and outside the company for business activities,
executives and employees must pay close attention in their handling of this information in order thatthe personal privacy will not be infringed, and must exercise the proper management control over it.
(3)Elimination of improper labour practices
Executives and employees must eliminate improper labour practices. Moreover, they must not employ
children under the legal working age of the country or region concerned. Executives and employees
must also impose the same conditions as conditions within TODA KOGYO Group, on its sales outlets
and subcontracting companies.

Introductory training

Message from the President/
Special ReportⅠ◆Concrete code of conduct

Among various education systems, TODA KOGYO especially puts eﬀort into the training for new recruits.
All recruits (technical and clerical recruits) work on the same training program together.

Product Group
Familiar to Consumers◆Basic policy◆New Recruit Training

Business Contents
and History

Regarding the originality and the diversity of each employee as property, TODA KOGYO Group supports unlimited leap and activity of its capabilities, and evaluate fairly. We also endeavor to enhance
employee's comfort and aﬄuence and aim to live together.

3）Training (Education) Systems

Management Principle
and CSR Policy2）Respect for human rights

Scene from a training for managers

Scene from a new recruit training (a training on business manner)

33

Societyworking in Japan, concerning the way they work, ways of spending holidays, etc.

Masahiko Katayama,
Hiroyasu Miki

Q:Are there anything you are keeping in mind ineveryday conversation with local staﬀs?

Miki (M)

Katayama (K)Q:Finally, do you have a message to readers?

Organization Chart/
Offices and Subsidiaries

34

Scene from a discussion

SocietyMembers of TMT

K: Although I take a signiﬁcant responsibility as a president of
the company, I feel a strong motivation in my job everyday. Though living in a foreign country may not be so easy,
I keep it in mind to enjoy the inconvenience. Because noteveryone can experience such inconvenience, I would liketo challenge many kinds of goals and expand the range ofactivities both in public and private.
M: When visiting Tianjin, please feel free to drop by TMT. We
would like to extend to you a cordial welcome.

Environment
and Safety

M: The members of the facilities team are outstanding. They continue improvements and carefully implement
precautionary measures.
K: Chinese employees tend to make a career move after their experience. However, TMT staﬀ remains in thecompany and continues working for a long period of time.

As one of these activities, there is GB200! Recruiting department established by four younger
employees within 5 years after hiring. It is said that the shortage of workers will become aserious problem in the future. In order that our company continue to be healthy in such a
circumstance, the subcommittee was established with enthusiasm to continuously increase ourcolleagues by delivering appeal of our company to students. The ﬁrst internship program in
our company for applicants in the humanities and social sciences was entrusted to thesubcommittee from planning to management, andsuccessfully completed with the support of
Personnel & General Aﬀairs Department. Because
the internship program was mostly appreciated byparticipating students, this subcommittee achieved
an important result that about 80 percent of thestudents applied for the subsequent recruitment.
Under the major goal of the project, for the purposethat our company will be much more attractive than
now through a bottom-up approach, we willcontinue to promote daily activities.

Product Quality

Q:What are the strong points of TMT?

♦GB200! Recruiting department

Topics ofBusiness Activities

K: We hold a year-end party at the end of the year. I also go out for a drink with my colleague individually and go
to lunch with my colleagues at a restaurant near our company.
M: When moving, my colleague kindly took me to IKEA where it took about one-hour drive from the company . I
also took a tour of curtain shops with my colleague, and visited the Great Wall of China with other colleagues.

In 2023, we will celebrate the 200th anniversary of our founding. Toward the anniversary
year and as a major goal of a sustainable development of the company after the anniversary, aproject called Go Beyond 200! (hereafter, GB200!) was launched. The project members seek
to make the working time that has a large percentage in time in their lives, more meaningful
and more fun than now. In order to facilitate this aim, having set up a subcommittee topromote a small group activity, each member works on an activity with enthusiasm to grow up
throughout the company by means of a bottom-up approach . Contents of activities bysubcommittees are not restricted. Speciﬁc examples of subcommittees include workshops suchas Enhancement of the corporate recognition and Construction of a manufacturing process
in the future . There are various kinds of activities by the subcommittees.

Management

Q:What is your communication with your colleagues other than your duties?

Go Beyond 200! ProjectSpecial ReportⅢ

M: Because we communicate through an interpreter, I do notconverse in Hiroshima dialect and speak using a short sentence. I try to talk positively about something otherthan work-related, for example, ask something which I found in downtown and could not understand what itwas. I also speak some Chinese acquired. I usually call out to staﬀs when I notice the change in clothing or
hairstyle.
K: As it might be diﬃcult to convey my idea fully at once, I usually reconﬁrm the understanding of the staﬀs byasking questions about what I explained from various viewpoints. Recently, under the inﬂuence of COVID-19,
we communicate with our colleagues remotely from Japan. In order to facilitate a smooth communication under
this inconvenient situation, I usually ask Please feel free to call me if there is anything to talk .
M: I also speak clearly regarding safety. I write in Chinese characters or in English when it seems that my colleague
does not understand my intention.

Special ReportⅡ

K: A total staﬀ number is 51 including about twenty operators
and about thirty day shift staﬀs engaged in maintenances,quality control, etc. The average age and the average length of
employment of them are 35 years and 7 years, respectively.
There are many employees since the company s founding.

Message from the President/
Special ReportⅠ

Q:Please introduce your colleagues working at Toda Magnequench Magnetic Material (Tianjin)
Co., Ltd. (hereafter, TMT).

Product Group
Familiar to Consumers

Toda Magnequench Magnetic
Material (Tianjin) Co., Ltd.

One year has passed since joining our company. At the new recruit training, I
gained experiences across a broad range of tasks concerning development
division, production division and sales division. Through the training, I not only
studied attitudes toward manufacturing in each division, but also acquired basic
knowledges indispensable in my work in the future, such as the history andsocial responsibility of TODA KOGYO, relations between other divisions in thecourse of my work, etc.
At present, I carry out daily activities as a member of Equipment Maintenance
Department, Production Engineering Division. My main activity is the repairingof facilities. Diﬀerent from the days when I ﬁrst assigned, opportunities forconstruction management as a main person responsible, are increasing recently.
Although there are bound to be some failures caused by many ﬁrst experiences, I do my best every day thanks to kindadvices from my bosses and seniors.
From now on, I will steadily learn knowledges of facilities and skills. I strive to perform daily work responsibilities inorder to become an engineer who can consider and propose the most suitable ways for repairing and improvementswith various point of views such as safety aspects.

Business Contents
and History

We interviewed with two employees posted to an overseas subsidiary and a young employee

Takao Kawada

Management Principle
and CSR Policy

Maintenance Department,
Production Technology Division4）Interview with employees

35Society

6
4
2
0

5
（42％）
4
（44％）

5
（56％）

2018

4
（67％）

2019
Male

2020 FY

Female（２）Continued employment and work style reforms
Male

FemaleAverage

Average number of years of continuous service

23.6

11.7

21.9

Average age

49.2

38.1

47.6

Monthly average of extra working hours (hrs)9.34

Average acquisition rate (%) of annual paid leave and number of acquired days of annual paid leave

72.3％／13.9
FemaleNumber of people eligible for childcare leave

83

Number of acquirers

03

Acquisition rate (%)

0%

100%

※Acquisition rate of female
maintains 100% over the pastten years.

Percentage of female workers in assistant manager

11.8

Percentage of female workers in management

2.7

Percentage of female in executives

0(Various career paths)

Number of mid-career recruits in the past 3 years

Society（４）Renewed challenges

Environment
and Safety（３）Evaluation and promotion (As of March 31, 2020)

Product Quality

Male

6
5

6

3
2
1
0

Organization Chart/
Offices and Subsidiaries

1

4

4

2

1
2017

2018
Male

36

2
（33％）

7
（58％）

Topics ofBusiness Activities

We make children realize the ・We encourage understanding ・Number of exhibitions atinterests of science and of science and chemistry
events for elementary, juniorchemistry.
through exhibiting at events forhigh and high school stuelementary, junior high anddents: 2high school students.
・Number of implementations
・We will cooperate withof outreach science lessons:6
school education for elementalessons were held at 4
ry school students (outreachschools.
science lessons etc. ).

8Management

We will consider measures to ・Reduction of the scheduled workmaintain annual paid leave ing hours per year (Decreased byusage of over 70% and mea- 1.16 hours compared to ﬁscal 2018)
sures to promote acquisition.
・Implementation of no-overtimedays (At each worksite)
・Implementation of systematic
grant rule for annual payed leave(At Research & Development Division)・Promotion of operational eﬃciency using rental oﬃces (At Tokyo
Oﬃce)

Male
83.5%

10

（Number of people）

4

During the planning period, weshorten the total actual working hours of our employees.
(Reduction of overtime hours
worked, promotion of usage ofannual paid leave, expansionof application of hourly use ofannual paid leave, etc.)

Number of new graduate recruits in the past 3 years

12Female15.5%

As a result of actively implementing regular recruitment
and career recruitment activities to raise the female ratio in
the workplace, the female ratio
increased to 15.5% as of theend of ﬁscal 2019. (14.5% at
the end of ﬁscal 2018)
Under the regulation for childcare and nursing care leaverevised on April 1, 2017, theperiod during which work hours
can be shortened for childcare,and during which the start time
and the end time can be carriedforward and downward, wasexpanded to the period until
reaching the beginning of enrollment at junior high school.
Both an acquisition rate and a
return rate of childcare leave
are maintained 100%.

14

Special ReportⅢ3

During the planning period, the ・We continue educational acstatus of childcare leave acqui- tivities on good balance besition will be as follows. In ad- tween work and family for all
dition to extending the appli- of our employees.
c a b l e p e r i o d f o r r e d u c i n g ・We inform all employees
working hours, we encourage about childcare leave law andacquisitions of shortening, ad- childcare leave rules, especiallyvancement and carry down of urge men to acquire the leaves.
working hours.
※ Male: Make one or more acquirers.
※ Female: Maintain an acquisition rate of 100% and a
return rate of 100%.

Proportion of female in employees

Special ReportⅡ2

We regularly make awarenessof various systems concerning
childcare through the intranet
and other means, and continue
to conduct necessary education for managerial training
etc.

Result for ﬁscal 2019（１）Recruitment（Number of people）

1

During the planning period, we
will raise awareness aboutchildcare in the workplaceand create a corporate culture/ structure that will provide understanding and cooperationfor employees who take childcare.

Measures to achieve the goal

◆Results◆ All data are as of March 31, 2020. / Results for ﬁscal 2019 (Number of new graduate recruits includes a result for ﬁscal 2020.)

Message from the President/
Special ReportⅠ

Goal

In addition to reviewing recruitment selection criteria and its operation, we will expand support measures for work-life balance after employment, and will disclose information such as acquisition rate ofchildcare leave. As a result of these measures, we aim to increase both the number of female job applicants and the female ratio in new graduate recruits.

Product Group
Familiar to Consumers◆Action plans for supporting the development of the next generation (5 years from
April 1, 2016 to March 31, 2021)◆Measures to achieve the goal◆

Business Contents
and History

Based on the provisions of the Act on Advancement of Measures to Support Raising Next-Generation Children and the Act on Promotion of Women s Participation and Advancement in the Workplace, TODA
KOGYO has formulated the following action plans concerning the development of the next generation
training and promotion of women s participation and advancement, and we are promoting activities according to these plans.

In response to our problems that the ratio of female employees is low, we promote the following countermeasures with the goal of setting the female ratio in new graduate recruits to 30% or more,Management Principle
and CSR Policy5）Support for the development of the next generation /activities on promotion of women s participation and advancement◆Action plans for promotion of women s participation and advancement (5 years from
April 1, 2016 to March 31, 2021)

2019

FY

Female37

Organization Chart
Fine Material Business Division

Japan

Tokyo Oﬃce
Business Development Department

Board of Directors◆Research & Development Division◆Otake Plant
・Toda Fine Tech Inc.

Business Promotion Department
Marketing Department
Management Conference

Compliance Committee

Onoda Plant
・Toda Pigment Corp.

Onoda Plant
BTBM, Onoda Plant

Otake Plant◆Tokyo Sales Oﬃce
・Tokyo Shikizai Industry Co., Ltd.
Head Oﬃce and Plant
・BTBM Head Oﬃce

Tokyo Oﬃce

・BTBM.
Kitakyushu Plant(Sanyo-Onoda, Yamaguchi)

Production Planning Department(Minato-ku, Tokyo)

Procurement & Logistics Department

Special ReportⅡ

Risk Management Committee

Production Division(Itabashi-ku, Tokyo)◆Head Oﬃce

◆Onoda Plant
・BTBM
Onoda Plant

Message from the President/
Special ReportⅠ

Nomination & Remuneration Advisory Committee(Kitakyushu, Fukuoka)

Tokyo Shikizai Industry Co., Ltd.
Head Oﬃce and Plant

・Tokyo Shikizai Industry Co., Ltd.
Iwaki Plant

BTBM, Kitakyushu Plant

CS Promotion Department
Internal Audit Department

Business Strategy Department

Toda Pigment Corp.

1(Kita-ku, Okayama)

Overseas

Production Technology Divisionai

Production Technology Department
Maintenance Department
Research & Development Division

TODA (CHINA) Co.,Ltd.
Procurement and trading

Toda Advanced Materials Inc.

Manufacture and sale of electronic materials

BASF TODA America LLC

Toda Kogyo Europe GmbH

Manufacture and sale of electronic materials

Supply and sale of Group products, etc.

TODA ISU CORPORATION

Manufacture and sale of electronic materialshbTechnology Development Department

Personnel & General Aﬀairs Departmentc

Toda United Industrial (Zhejiang) Co., Ltd.

de

Manufacture and sale of functional pigmentsbfHuman Resources Development Department

Zhejiang Huayuan Pigment
Co., Ltd.

Manufacture and sale of functional pigments

Manufacture and sale of electronic materials

b
g

e

d

Zhejiang Toda DMEGC
Magnetic Co., Ltd.

Manufacture and sale of electronic materials

Toda Plastic Magnet Material(Zhejiang) Corp.

Manufacture and sale of electronic materialsg

MECHEMATODA CORPORATION

Manufacture and sale of raw materials for electronic materials

Thailandf

2016

TODA MAGNET (SHENZHEN)
Co., Ltd.
Manufacture and sale of electronic materials

Toda Kogyo Asia (Thailand)Co., Ltd.

Manufacture and sale of electronic materials

Organization Chart/
Offices and Subsidiaries

38

Toda Magnequench Magnetic
Material (Tianjin) Co., Ltd.

Manufacture and sale of electronic materials※Functional pigments = a variety of coloring materials and magnetic powder materials
Electronic materials = Ferrite materials and battery materials

d

c

a

TODA Ferrite KOREA Co., Ltd.

Society<Company Data>
Name of company: TODA KOGYO CORP.
Head Oﬃce: 1-23 Kyobashi-cho, Minami-ku, Hiroshima, 732-0828 JapanFounded: 1823
Incorporated: November 30, 1933
Capital: 7,477 million yen
Number of employees: 351 (stand-alone), 1,188 (consolidated)※As of March 31, 2020hEnvironment
and Safety

Accounting & Information System Departmenti

Product Quality

Corporate Administration Division

Topics ofBusiness Activities

Quality Assurance Department

Head Oﬃce(Minami-ku, Hiroshima)

Management

CSR, Environment & Safety Department

Otake Plant(Otake, Hiroshima)* BTBM = BASF TODA Battery Materials LLC.

Korea Business Department

Process Development Department
Structure Improvement Department(Otake, Hiroshima)

Special ReportⅢ

Corporate Planning Department

Research & Development Center

China Business Department

Product Group
Familiar to Consumers

President

・Central Battery Materials Co., Ltd.

Business Contents
and History

Board of Corporate Auditors

Management Principle
and CSR Policy

General Meeting of Shareholders

Oﬃces and Aﬃliate Companies39©2020 S. FC

TODA KOGYO CORP.
participates in local sports
promotion activities!

Contact address: CSR, Environment & Safety Department (Tel: ＋81-827-57-6129)

Published in October 2020