Technology and quality flowing together in one perfect motion 2015 Creating “Satisfaction in Life” Technology and quality – the work of the Topy Industries Group flowing together in one perfect motion The Topy Industries Group plays an active role in various aspects of one’s life and society. It is our mission to create new value that lead to “Satisfaction in Life” through a wide range of business activities from At the Topy Industries Group, we use the phrase “One-piece Cycle” to describe making steel material – the foundation of society – to producing automobiles and industrial machinery components, our approach to building a richer, prosperous society. Our Group’s most distinctive quality is our integrated production system, which covers everything from raw materi- generating and distributing electric power, and sports / leisure businesses. als to finished products. The know-how cultivated by each of our many business divi- sions is shared throughout the Group, enabling us to develop technologies with great- We have an integrated production system from raw materials to finished products, which assures the manufacture of er ingenuity and to make products with greater added-value. From design to production, from raw materials to finished products, we at Topy Industries conglomer- high value-added products that meet the various needs of industries. ate are committed to working alongside other Topy Industries Group companies and the society that uses our products to create new ways of doing business. We have a flexible world-wide manufacturing network. By making the most of these strengths we continue to deliver technologies and products to make our society more livable, comfortable, and contribute to the global environment. Contents This report provides the latest business and CSR activities of the Topy Industries Group. Editorial Policy/Contents 1 Top Message 3 Take a look at the “present” Topy Industries Group as we continue to work on future challenges. Corporate Profile and Governance Corporate Profile 5 Global Development of the Topy Industries Group 9 Special feature 11 Corporate Governance 15 Medium Term Consolidated Management Plan 19 Business Development Topy Industries Group at a Glance 21 Steel Business 23 Automotive and Industrial Machinery Components Business 25 Other Business 29 New Products and Technologies 30 From Topy’s Global Locations 31 CSR Activities CSR of the Topy Industries Group 33 CSR Highlights: Close-up 35 Toward a Promising Future Energy Saving Initiatives 2020 : “Enekatsu 2020” 37 Environmental Activities Environmental Management 39 Recycling 40 Initiatives on Waste Reduction 41 Initiatives on the Prevention of Global Warming 43 Biodiversity Conservation 43 Chemical Substance Management 44 Development of Environmentally Friendly Products 45 Reporting Period Editorial Policy Basic Environment Policy of Each Factory 46 Reporting Scope Covers mainly FY2014 (April 1, 2014 to March 31, 2015), but includes Social Responsibility This report covers all companies listed as an affili- some activities that occurred after April 1, 2015. Relationship with Customers Basic Policy ate of the Topy Industries Group (consolidated basis), 47 Topy Report 2015 has been prepared to provide all financial information. Information which was previously however, some activities and data represents only Date of Issue Involvement with Shareholders and Stakeholders 48 Topy Industries, Limited. Activities where the scope stakeholders with information on the involvement and introduced in the annual report has been integrated December 2015 Relationship with Local Communities 49 activities of the Topy Industries Group with respect to into this Topy Report 2015. has not been specified refer, in principle, to the Topy Relationship with Employees 51 CSR in a comprehensive manner. This report is largely Industries Group. Where it is necessary to specify the Inquiries Regarding this Report divided into two parts: the first part introduces the phi- This report has been prepared with reference to applicable scope, activities by Topy Industries alone Additional Data losophy of the Topy Industries Group, topics of activi- “ISO26000:2010”, GRI“Sustainability Reporting Guide- are identified within the headline or sentences as Topy Topy Industries, Limited (General Affairs Department) ties in the fiscal year (FY) 2014 and addresses the en- line 2006” and Environment Reporting Guidelines Industries and activities by an individual Group compa- TEL: +81-3-3493-0777 Corporate Data 55 vironmental and social responsibilities of the Topy 2012 of Ministry of the Environment. ny are identified by the name of the Group Company Art Village Osaki Central Tower, 1-2-2 Osaki, Industries Group; the second part consists mainly of involved. Shinagawa-ku, Tokyo, Japan 141-8634 1 2 Corporate Profile and Governance Top Message upheaval. The progressing depreciation of the yen, drop in oil procurement criteria at each department, we are advancing prices and slowing down of the economy in China and ASEAN the formulation of a supply chain management that enables countries which once was a “high-flying economy”, have brought stable procurement and one which can precisely respond to serious impact on our development plans that expected the needs from customers. Corporate Profile and Governance We strive to further enhance quantitative global growth for our products and services. This is As a supplier, we have paid special attention to the issue of particularly conspicuous in the sharp drop in demand for mining BCP (Business Continuity Planning) when building the new corporate value and machinery overall and decrease in demand for construction electric furnace. Since it is highly unrealistic to think that all machinery in China, putting us in a difficult position to achieve the damages can be prevented in the event of a disaster, we are contribute to realizing a targets we initially planned. However, we have steadily implemented taking action on a regular basis to minimize damages by sustainable society by measures to build a foundation for growth and addressed actions increasing the resistance of buildings and manufacturing against environmental changes at each business segment as well facilities against earthquakes, and implementing other disaster providing the world with as reviewing and realignment of business. We have evaluated all mitigation measures so that we do not disrupt the supply of group companies under the same criteria, giving management products to our customers. We are confident that these values generated through freedom to a greater extent for those companies with a high initiatives will help strengthen the continuation of our business our core business. evaluation while applying more effective corporate governance for activities. companies with a low evaluation in order to enhance group The development of global company management levels and to progress business promotion business such as the Topy Industries, Ltd. scheme towards future growth. establishment of a joint venture President and CEO company in Mexico poses another business challenge for us. As our business expands globally it Initiatives on CSR for FY2014 Business Development becomes more important for us to respect differences in cultures, From the view point of CSR, we have exerted increased customs and habits of local efforts toward corporate compliance and risk management, communities, to comply with and promoted the awareness of such matters through applicable laws and regulations of educational training programs for employees of the Topy host countries, to promote Industries Group. Furthermore, human resource development diversity, and to tackle other social issues. from a global prospective is essential to the future of the Topy Industries Group. In order to meet such requirements we have Business Activities and Promotion of CSR accepted trainees from overseas, provided assistance to local production sites and launched a project team to realize the participation and success of women employees in the workplace as part of promoting diversification. In six years’ time, Topy Industries will celebrate its 100th Corporate Profile and Governance As for EneKatsu 2020 (Energy Saving Initiatives 2020), anniversary of foundation. The 100th anniversary will mark a reported in Topy Report 2014, we have achieved solid results milestone in the history of the company. In order for the and are proceeding with the next plan to introduce energy company to continue being a sustainable organization in the saving equipment. We believe that services and products that future, we need to start our 101st year with a clean slate, and are environmentally friendly and create a new corporate culture. We are fully aware that, the that lead to resolving social issues notion that conventional ideas, technologies and preceding are essential to the future of our examples of management will assure business success had company. In this respect, we are long prevailed during the height of Japan’s economic growth. determined to progress our However, this can no longer be applied to our business today. contribution to the environment When drawing out our future business plan, it is now unrealistic through our business, namely to think that following our predecessors’ paths and doing Fulfill Corporate Social Responsibility (CSR) through produce reliable and high-quality products that meet the diversified making use of our new electric business in the same way will eventually lead us to our desired Business Activities