Sustainability

For the TOMY Group, the human resources involved in the creation of Asobi at domestic and overseas Group companies are important human capital, and the promotion and realization of our Group’s business strategy depend on securing, developing, and enabling the active participation of these human resources. Furthermore, we believe that working for the TOMY Group has a major impact not only on the skills and careers of our human resources, but also on their lives themselves.
Based on this approach, and in accordance with our Purpose and Vision, the TOMY Group has established the following Human Capital Strategy and Materiality and is working to strengthen our human capital while taking risks and opportunities into consideration.

The TOMY Group aims to be an organization where diverse human resources in Japan and overseas proactively and continuously work to create value, generating greater results globally.

The TOMY Group has established five pillars of transformation to realize the ideal organization outlined in our Human Capital Strategy. By working on specific measures linked to each pillar, we will not only continuously fulfill our human resources portfolio, but also promote productivity improvements and the creation of Asobi Innovation^*1. This will improve employees’ Asobi Well-being^*2, while further strengthening an organizational culture that achieves sustainable corporate growth.
Through these efforts to strengthen human capital, the TOMY Group will promote business strategies that expand our regional and age demographics to reach a diverse range of people. We aim to realize Business Vision 2030 (increasing economic value) and Sustainability Vision 2030 (increasing social value), thereby continuously enhancing our corporate value.

(Note) Although this strategy is positioned as a strategy for the entire TOMY Group, we are separately considering individual strategies for KIDDY LAND Co., Ltd. due to its high percentage of part-time and temporary employees. *1 Asobi Innovation: A series of initiatives that generate technologies, ideas, designs, and business opportunities to create new value for Asobi through the co-creation of diverse human resources. (Including the creation of patents, designs, and trademarks, as well as expansion into new businesses) *2 Asobi Well-being: A state in which diverse human resources collaborate while taking on autonomous challenges, maximizing their performance through a flow state of being fully absorbed (immersed) in creating Asobi.

The TOMY Group’s Human Capital Strategy is designed to “transform our organization, environment, and human resources to foster a passion for creating Asobi, in tandem with our corporate strategy aimed at increasing corporate value.” Under this Human Capital Strategy, the Group strives to support employee skill development by enabling individual employees to think about their careers, with the aim of maximizing their skills and abilities while opening up new possibilities. We are also working to reform our career planning, evaluation, and compensation systems so that diverse human resources can work with a sense of fulfillment, maximize their personal growth, and help realize our Purpose, Vision, Values, and Promise.

Governance related to human capital in the TOMY Group is promoted under the supervision of the Board of Directors, through a business execution system centered on the Managing Directors’ Meeting chaired by the President and CEO.
The Board of Directors receives proposals for resolution or reports on important management issues, including the Human Capital Strategy, and supervises the execution of business operations. In business execution, the Managing Directors’ Meeting, chaired by the President and CEO, deliberates and makes decisions on key matters regarding human capital, such as the Human Capital Strategy, organizational restructuring, human resource allocation, and working environment improvement, with results submitted or reported to the Board of Directors as necessary.
Furthermore, the planning and promotion of specific initiatives concerning human capital are led by the Human Capital Strategy Department and the DEI Promotion Department and are deployed across the Group in collaboration with domestic and overseas Group companies.
In addition, progress management of medium-to-long-term business strategies, evaluation and appointment of executive officers, examination of organizational strategies, and responses to sustainability and ESG issues are reported and deliberated at important meeting bodies such as the Medium-Term Management Plan Meeting, the Executive Officer Assessment Committee, the Organizational Decision-Making Meeting, and the Sustainability Committee, striving to improve the effectiveness of human capital initiatives and ensure appropriate governance.

We disclose rules regarding personnel evaluations and promotion requirements and conduct fair and impartial evaluations. We also conduct evaluator training for managers. We are revising our personnel system to one that promotes the growth and job satisfaction of all employees and maximizes their performance.

Three Characteristics of the Unique TOMY Job-Based Personnel System

(2) Evaluation System
A system that clearly defines the different skills required for each position and the evaluation process

We have introduced an evaluation system that does not use the same criteria for all positions, but rather evaluates employees based on the degree to which they demonstrate the skills required for each position. We have prepared an environment that allows employees to grasp their current status in more detail and link this to their growth through meetings with their supervisors. In addition, we have changed from a relative evaluation system in which evaluations of superiority and inferiority are controlled by the rate of occurrence, with a normal evaluation as the center, to an absolute evaluation system in which the degree to which each individual has demonstrated various skills is compared to set criteria. We have also clarified where the results of evaluation and compensation are reflected. Work results and performance are evaluated as a performance evaluation and reflected as a variable coefficient in performance bonuses. At the same time, performance evaluation is not used for promotion, and if the employee’s conduct and skills are evaluated as being of a level that contributes to a higher grade, the employee can be promoted by satisfying other requirements, such as an aptitude test – thereby establishing a mechanism that clearly defines evaluations and how they reflect on employee treatment.

*In addition to evaluation meetings, we conduct interviews with employees to learn about their medium-term career plans and promote their growth toward their envisioned careers. We are also developing mechanisms to understand employee aspirations regarding working overseas in order to develop global human resources.

(3) Compensation System
Eliminating seniority-based wages and personalized allowances to make each grade more competitive

We used compensation amounts from an external survey as benchmarks to set upper and lower limit ranges for each grade. Upon being promoted, employees are moved within the range set for the promoted grade and their salary is adjusted according to their evaluation within the range, regardless of age or years of experience. Household allowances and child allowances, which were paid to employees who were heads of households and had dependent children, were paid primarily to men, and have now been eliminated. Instead, the wage structure will be more grade- and performance-oriented regardless of an individual’s family structure or environment, to ensure that there are no wage differences or inequities due to personal factors. In addition, for bonuses, the fixed portion was incorporated back into base pay, leaving only performance-linked bonuses and strengthening the performance-linked element.

Under its Talent Strategy Vision, the TOMY Group strives to support employee skill development by providing various training programs enabling individual employees to think about their careers, with the aim of maximizing their skills and abilities while opening up new possibilities.
In FY2025, we conducted self-improvement, mandatory, and selective training programs, with a cumulative total of 1,290 participants.
In addition, in the engagement survey, the index of employees’ sense of growth* regarding self-driven career development was 72.2% on average for TOMY (up 5.2 pt compared to the Japanese manufacturing industry average).

* Ratio of positive responses to questions regarding the sense of growth in the engagement survey

(1) Overview of Education System

In addition to the programs listed above, we conduct a Toy Technology Training Course for young employees involved in planning development, technology development, production technology, or quality management to learn about the structure of toys and technology involved in molding. We also provide a TOMY Toy Technology Think Tank brochure that summarizes our expertise on setting up a new production base. Through such efforts, the TOMY Group has established a framework that enables young employees to benefit from our long-amassed technology and expertise.

(2) Overseas Trainees Program

To foster self-directed career growth and develop globally skilled talent, we have introduced an overseas training program at our overseas operations. We will first target positions and locations related to development technologies, production control, and safety and quality, then gradually expand it to other positions and locations.

The TOMY Group believes that embracing the diverse perspectives of a diverse range of people in our business is the best way to develop and invigorate our company, so we make our hiring decisions based on comprehensive judgement and a genuine respect for a candidate’s skills and individuality without reference to nationality, race, ethnicity, religion, gender, sexual orientation, age, ability or disability. In addition, TOMY International, which is responsible for overseas operations, recognizes the importance of DE&I and has established a committee to promote DE&I. This activity is a cross-border initiative, with the U.S. , the U.K., and Europe playing a central role.

Creating a Working Environment Where Diverse Human Resources Can Thrive from a Gender Perspective

The TOMY Group has established an action plan to create an employment environment allowing women to play active roles in managerial positions. We have set targets to increase the percentage of women in managerial positions to at least 20% by the end of March 2026, and to increase the percentage of men taking parental leave to at least 30%. In addition, our medium-term sustainability tagets and KPIs (FY2024-2026) is to increase the percentage of women in managerial positions in the Group to at least 30% through a fair personnel system. In April 2024, we set up the DEI Promotion Group to strengthen various measures and initiatives to achieve these targets. As a key initiative, the department organizes roundtable discussions and workshops led by young female managers to help female employees find role models and set personal career goals. Other programs include next-generation female leader development training and training to improve mental toughness.

The TOMY Group is revising its personnel system with the aim of creating a system that enables talented individuals who can continue to play an active role "regardless of age" to take on challenges and make contributions that excite the world while being absorbed in the creation of "Asobi." We believe that such initiatives in human capital investment can further enhance an environment where diverse talent can thrive, leading to improved employee sense of fulfillment and a sustainable increase in our corporate value.
By setting roles after re-employment based on individual abilities, experience, and expertise, and by making remuneration levels according to those roles clear, we are building an environment where re-employed contract employees can fully demonstrate their abilities without restrictions on their duties, and support them to be even more actively involved.
In addition, we have expanded the eligibility for "childbirth leave" to include employees who become grandparents, and have introduced special leave that can be used to attend the birth of a grandchild or to care for a grandchild.

We actively seek out mid-career hires whose skills are an immediate asset to the company. We also have a Job Return System in place to rehire former employees who left the company due to life circumstances — such as marriage, childbirth, childcare, nursing care or their partner’s job transfer — as well as those who left to further their career by going back to school, studying abroad or pursuing other roles. This system enables employees to utilize the knowledge and experiences gained after their departure from the company by returning to the TOMY Group, with the aim of revitalizing the company and creating new value.