Respect for Employees : Human Capital Initiatives
Toyo Seikan Group promotes the development and success of human resources as a group. In 2018, to realize our management philosophy, we established the "Toyo Seikan Group Personnel Policy," focusing on four pillars: "Realizing Autonomous Growth (Human Resource Development)," "Co-creation of Diverse Human Resources," "Work Style Reform," and "Health Management," and have been working to improve the internal environment. In 2023, with the aim of strengthening the Group's overall capabilities and linking human capital management to corporate value, we formulated the "Human Resources Strategy," "Human Resource Development Policy," and "Internal Environment Improvement Policy." By expanding human capital, we aim to enhance corporate value.
Group management strategy and organizational structural reforms implemented to date
The basis of our management strategy is to "maintain existing business areas while expanding profits in new business areas by making maximum use of the Group's resources." To realize this strategy, we transitioned to a holdings structure in 2013 and have since (1) established and expanded strategic departments, (2) consolidated and integrated operational tasks, and (3) established a governance system. In 2021, we formulated our "Long-Term Management Vision 2050: The Future, Wrapped for All," and are currently working to spread this vision among our employees.
Ideal candidate profile for realizing business strategy
The types of talent needed to realize the above management and organizational strategies can be broadly divided into the following three categories.
- Talent who can maintain and continue the operation of existing businesses at a high level (in terms of quality, cost, delivery time + ESG)
- Talent who are familiar with the operations of existing businesses and can build new systems from the perspective of optimizing the entire group
- Talent who can utilize the group's resources to create new products, technologies, and businesses
After securing personnel in category ①, the challenge is how to increase personnel in categories ② and ③ ("group personnel").
Human Resources Strategy
The human resources strategies for developing the above talent are summarized below.
- By promoting human resource management based on the Group's personnel policy, we aim to improve employee engagement and productivity.
- Creating an environment to secure human resources for the manufacturing sector
- Regarding regular recruitment of university graduates at major group companies, we will continue to recruit all employees at once across the group, aiming to strengthen our competitiveness in recruitment and raise awareness of the group.
- Promote group awareness and foster new perspectives through collaboration and personnel exchanges that transcend company boundaries
- Actively recruiting mid-career talent with diverse knowledge
KPI
The KPIs for realizing our HR strategy are summarized below.
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Scores for "Engagement," "Overall Health Risk," and "Workplace Growth" are measured using the "HoPE Survey" by Hoken Dojin Frontier Co., Ltd. "Engagement" is measured from three perspectives: "Attachment to the organization," "Fulfilling one's role (will and motivation)," and "Ambition for work."
As a correlation can be seen between many KPIs, such as "EBITDA per capita" and "engagement," at each group company, we plan to continue efforts based on the group's human resources policy and improve each KPI, thereby improving "EBITDA per capita," which is our KGI.
Indicators and targets for the materiality "Respect for Employees"
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| KGI | KPI | Achievements | Target year | ||
|---|---|---|---|---|---|
| FY2023 | FY2024 | FY2025 | |||
| per person EBITDA *1 Over 6.5 million yen |
4.54 million yen | 4.79 million yen | 5.58 million yen | 2030 | |
| Ratio of female managers *2,3 More than 6% |
4.4% | 5.8% | 5.6% | ||
| Female hiring ratio *3 Over 30% |
17.5% | 23.3% | 26.3% | ||
| Differences in average years of continuous employment between men and women *3,4 Within 3 years |
3.1 years (18.3 years for men, 15.2 years for women) |
3.2 years (18.3 years for men, 15.1 years for women) |
3.7 years (18.5 years for men, 14.8 years for women) |
||
| The percentage of workers who continued employment by gender in the fiscal years immediately preceding and following the 10th fiscal year. *3,4 Over 60% for both men and women |
62.3% male, 50.5% female (Overall 60.5%) |
58.7% for men, 48.7% for women (Overall 57.1%) |
Male 57.4%, female 47.5% (Total 55.9%) |
||
| Engagement *3,5 53 or older |
50.8 | 50.9 | 51.2 | ||
| The degree to which the group's philosophy and vision are understood *3,6 Over 80% |
51.0% | 55.0% | 60.8% | ||
| Overall health risk *3,5 96 or less |
103 | 102 | 99 | ||
| A workplace where you can grow *3,5 53 or older |
51.8 | 51.9 | 52.3 | ||
| Percentage of core personnel with experience at other group companies *3 Over 60% |
59.1% | 59.0% | 57.9% | ||
| Number of people exceeding 45 hours after hours *3,7 2.7 people |
5.0 people | 4.9 people | 4.6 people | ||
- Calculated by dividing consolidated EBITDA by the number of consolidated employees
- The figures for fiscal years 2023 and 2024 are as of April 1st of each respective year, and the figures for fiscal year 2025 are as of March 31st.
- Target companies: Toyo Seikan Group Holdings, Toyo Seikan, Toyo Kohan, Tokan Kogyo, Nippon Closures, Mebius Packaging, TOYO GLASS
- As of March 31 of each fiscal year
- The measurements are taken using the "HoPE Survey" provided by MBK Wellness Co., Ltd. Furthermore, "a workplace where you can grow" is an indicator that measures whether or not a workplace allows employees to envision their own career advancement and growth, and to engage autonomously and proactively.
- This is the percentage of employees who answered that they "understand" or "understand to some extent" the Group's philosophy and vision. Disclosure will begin from fiscal 2023 results.
- The average number of incidents per 100 people per month in each fiscal year is calculated, excluding management-level employees.
Particularly important issues for realizing HR strategies
We recognize four points as particularly important issues: "improving engagement in the manufacturing department," "improving engagement among employees in their 30s," "increasing the percentage of female managers and eliminating the gender wage gap," and "improving group consciousness and the rate of talent mobility within the group."
① Improving engagement in the manufacturing department
Toward 2050, which has set the "Long-Term Management Vision 2050 'The Future, Wrapped for All'," the domestic population aged 18 is expected to decrease significantly, while the rate of university advancement to universities and other institutions will rise, resulting in a significant decrease in the number of young people who graduate from high school and start working as working adults. In order to continue the group's business under such circumstances, it is important to reduce employee turnover and strengthen hiring competitiveness by improving employee engagement in the manufacturing division. Since engagement is strongly correlated with long working hours and physical strain, we will work to eliminate long working hours, including reviewing shift shifts, and to reduce physical strain through labor-saving investments.
Engagement by Category and Age Group (Fiscal Year 2025)* Target: Toyo Seikan Group Holdings, Toyo Seikan, Toyo Kohan, Tokan Kogyo, Nippon Closures, Mebius Packaging, TOYO GLASS
② Improving engagement among employees in their 30s
An analysis of employee engagement by age group reveals that those in their 30s tend to have lower engagement than other age groups. This is largely attributed to the increased psychological burden (amount) of work compared to those in their 20s, coupled with reduced support from superiors and colleagues, leading to a decreased sense of personal growth.
As a countermeasure, we conducted career training and career consulting interviews for employees in their 30s and their supervisors. We are currently considering ways to enhance career development support for employees of all ages. We are also considering implementing an open recruitment system within the group, career self-declaration, and expanding our career counseling services.
③ Increase the percentage of female managers and eliminate the gender wage gap.
Ratio of female managers
As a target for fiscal year 2030, we have set a goal of exceeding 6% for the percentage of female managers across our seven group companies and are working to improve this. In fiscal year 2025, the percentage of female managers across the seven group companies was 5.6%, showing an improvement from 2.7% in fiscal year 2019. Similarly, the percentage of women in their 30s, who are candidates for management positions, reached 11.5%, showing a similar trend.
Going forward, we will focus on providing early opportunities for growth that take life events into consideration, and establishing flexible work styles that do not rely on long working hours. By creating a system that allows everyone, regardless of gender, to demonstrate their abilities, we will promote the development and promotion of female managers in the medium to long term.
Since fiscal year 2024, we have established a Diversity Promotion Subcommittee as a subordinate organization of the Human Rights and DE&I Promotion Subcommittee. The subcommittee aims to improve diversity throughout the group by sharing best practices from each company, proposing policies, and facilitating interaction among participating members. In fiscal year 2025, we examined support for balancing childcare and work, identified challenges, and conducted a survey within the domestic group.
Gender wage gap
In fiscal year 2025, the gender wage gap across the 15 companies in the group averaged 69.6%. Looking at wage items for regular employees, the gap in base salary remained around 90% for both managerial and non-managerial positions, but the gap widened in wage items such as family and housing allowances and overtime and shift allowances. Furthermore, due to the low percentage of female managers, the gender wage gap for all regular employees combined is larger than the gap when looking at gender wages separately for managerial and non-managerial positions.
To further improve the company, we plan to continue working on increasing the hiring and retention rates of female full-time employees, promoting them to higher positions and grades (expanding career development for internally promoted employees and hiring mid-career employees for management positions), reviewing the eligibility requirements for family and housing allowances, and eliminating the gender wage gap by correcting long working hours for male employees.
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| index | Target value | actual value | |||
|---|---|---|---|---|---|
| FY2022 | FY2023 | FY2024 | FY2025 | ||
| Gender wage gap (all workers) | 80% in FY2030 | 66.9% | 69.6% | 69.0% | 69.6% (reduced) |
- The figures for fiscal year 2022 are for 14 group companies, and for fiscal year 2023 and beyond, for 15 companies.
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| Basic salary *2 | Family and housing allowances *3 | Overtime and shift allowances *4 | Total wage items | |
|---|---|---|---|---|
| Management position | 92.3% | 21.0% | 44.2% | 90.7% |
| Non-management position | 90.0% | 36.3% | 43.5% | 78.1% |
| Total full-time employees | 82.6% | 36.5% | 49.5% | 75.5% |
- These figures are based on salary data for March 2026 (single month).
- Basic salary refers to role-based pay, skill-based pay, age-based pay, qualification pay, position allowance, position allowance, qualification allowance, work allowance, etc.
- Family and housing allowances include family (support) allowance, housing allowance, single-person relocation allowance, urban allowance, and cold region (fuel) allowance.
- Overtime and shift allowances include early-morning overtime allowances, late-night allowances, holiday work allowances, allowances for over 60 hours, night shift allowances, late-start allowances, shift work allowances, and staggered work allowances. Overtime and shift allowances for managers include late-night allowances.
④ Improve group awareness and the rate of personnel mobility within the group
To realize the group's management strategy, it is necessary to enhance employee group consciousness and promote talent mobility. With this in mind, we have set "the degree to which the group's philosophy and vision are understood" and "the percentage of core personnel with experience in other group companies" as KPIs. Core personnel refer to future leader candidates selected from major group companies. We will increase the rate of talent mobility within the group by promoting the understanding of the group's long-term management vision, which was formulated in 2021, and by facilitating the shift of talent to growth business areas.
Human resource development policy for achieving human resource strategy
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| Ideal Candidate Profile | Until now | from now |
|---|---|---|
| ① Personnel capable of maintaining and continuing the operations of existing businesses at a high level (quality, cost, delivery time + ESG perspective). | We are working to raise the overall level of training by conducting group-wide training for newly appointed managers and hierarchical training for younger employees. We are also working to strengthen management skills by utilizing the results of group stress check analysis, and through improvements in support between superiors and colleagues, we have achieved our 2025 target for overall health risk. | As the workforce becomes more diverse, strengthening the management skills of managers is becoming increasingly important for organizational management that allows each employee to demonstrate their abilities. We will establish a system (training) that allows managers to continuously reflect on and follow up on their management after being promoted to a managerial position. |
| ② Personnel who are thoroughly familiar with the operations of existing businesses and who can build new systems from the perspective of optimizing the entire group. | As selective training, we conduct the "Next-Generation Management Development Training" (for department managers) and "TSGBC (Toyo Seikan Group Business College)" (for section managers). We promote "core talent management," which combines training with strategic rotation (tough assortment). | We will increase strategic rotations (tough assignments) after training and work towards achieving our goal of having over 60% of core personnel have experience in other group companies. |
| ③ Individuals who can create new products, technologies, and businesses by utilizing the group's resources. | With the aim of broadening the perspectives of our researchers and developers, we conduct group training based on MOT (Management of Technology). | We will work to expand the number of projects and target participants for our existing programs, including public recruitment, group side jobs, and cross-border learning. |
Policy for creating an environment to realize human resources strategies
To address the increased mobility of talent within the group, we have standardized personnel systems across our major group companies and developed IT infrastructure such as talent management systems and stress check systems. Furthermore, to secure top talent and cultivate leaders who will drive the group forward, we switched from regular recruitment of university graduates at our major group companies to a unified group recruitment process starting with those joining in fiscal year 2021. As a result, we have seen an increase in employees with a group-wide perspective, and the company's philosophy and vision are becoming more widely understood.
Going forward, we will support career development through improvements to our personnel system, utilization of IT infrastructure, and expansion of career training and consultation services tailored to different age groups, thereby increasing the number of employees who proactively take on change and contribute to the growth of the group.
Policy for Determining Employee Salaries, etc.
Our company, Toyo Seikan, and Toyo Kohan pay employees their base salary based on the role grading system. Annual income levels are set with consideration for the level of prime listed companies (manufacturing) and are competitive for hiring.
Our company and Toyo Seikan have management bonuses linked to the number of months paid to EBITDA per person, which is the KGI for realizing HR strategies (the same method is under consideration for the Toyo Kohan management bonus). We have introduced an employee stock ownership plan targeting employees of domestic group companies, and in fiscal years 2025 and 2026, we implemented restricted stock grants to employee investment association members.