Sustainability

SOCIAL

Procurement and Provision of High-Value-added Products, Merchandise and Services

Quality Control of products and merchandise
Acquisition of certification of JIS and industry group
Response to complaints

In the event that a complaint is raised, KONDOTEC first has the sales representative meet with the customer and prepare a report. When there is a need to investigate the cause, if the case pertains to a product manufactured in-house, the Quality Control Section in our factory takes the necessary steps, while if the case pertains to procured merchandise, we take steps jointly with the supplier. We have a mechanism to share complaints whereby holding a meeting on complaints (irregularly held) and cases that should be shared on a corporate-wide basis are addressed to the entire organization by issuing a sales report or guidance to draw attention in order to share information.

Technical strength through co-creation with group companies

We are engaged in product development and development of labor-saving lines by adding the technological strengths of Mechatro Laboratory as one of KONDOTEC’s manufacturing section to CHUOH GIKEN Co., Ltd. which is our group company. Thus far, CHUOH GIKEN Co., Ltd. has developed brace manufacturing lines in the factory and automated chain cutters for chain slings.
We will continue striving to improve the production capacity for the Company’s products using synergies with group companies.

Stance for Security and Safety
Implementing study groups for customers
Voluntary quality control activities (QC activities)
Internally certified qualification “Lifting equipment advisor”

For the purpose of public relations for its corporate image as a lifting equipment manufacturer and improvement in employee knowledge of products and merchandise and abilities to propose and sell, KONDOTEC introduced the “Lifting equipment advisor” system as an internally certified qualification in 2015.
Employees can be qualified as a “Lifting equipment advisor” after external safety/hygiene education, obtaining public qualifications, participating in internal three-day seminars, and passing the written examination.
By the end of March 2024, 63 employees had become qualified as lifting equipment advisors, and engage in not only supplying lifting equipment but also providing their knowledge at operating sites across Japan.
Moreover, while Technical service staff at Osaka head offices have been in charge of seminars on lifting equipment for people outside the Company, with lifting equipment advisors coming into existence study groups on lifting equipment can now be held all over Japan.

Provision of Products, Merchandise and Services responding to Changes in the Times and Needs of Customers

In addition to providing necessary materials for construction, KONDOTEC deals with materials for recovery/reconstruction used at the time of disasters and any other items needed at construction sites.
After its foundation, the Company sold hardware for vessels, and subsequently started dealing with construction materials during the high growth period; we currently provide more than 50,000 products and merchandise. At the New Merchandise Committee held every other month, sales staff propose to deal with new products and merchandise based on the needs of customers, generating numerous hot selling products and merchandise from the adopted proposals.
At present, we also operate the “Tsurikata” inspection site for lifting equipment to simplify the individual management and inspection of merchandise centered on cargo handling equipment.
Moreover, we not only sell products and merchandise but also proactively disclose information and provide services on the Company website.
Along with our online catalog and technical information, we have opened an online showroom to display new products and merchandise, drawings, instruction manuals, and usage videos. we will continue to not only sell products and merchandise but to also provide high-value-added services, such as disclosing software to support the selection of wire ropes according to the weight of lifted loads.

Online showroom

In 2022, we opened an online showroom for new products and merchandise, drawings, instruction manuals, and usage videos. In line with the recent digital shift by companies and consumers, we created the online showroom to provide additional information on products and merchandise that we were unable to convey via our existing website and catalogs, further enhancing convenience. We invite you to visit the showroom as we continue to increase and enhance its content.

Cultivation of Suppliers and Efficient Purchase, Management and Delivery

To make bulk purchases of merchandise from suppliers, KONDOTEC has logistics center at two bases in Japan (Osaka and Ibaraki) as well as one base in China. We are reducing the cost of purchase by delivering in-demand merchandise to operating sites using in-house delivery systems after purchasing them in bulk from manufacturers in Japan and abroad ,and storing in logistics center.
Moreover, we always take a stance of reviewing costs by having established the Delivery Division to constantly find better suppliers as well as concluding OEM production contracts with manufacturers.
Furthermore, we can search on our own system for the status of inventories at logistics center or individual operating sites. As a result, by grasping the status of inventories at our own sites in real time, we can measure the timing for our own sites to purchase inventories as well as immediately reply to inquiries from customers.
For deliveries, we have a system to deliver to customers safely and quickly by employees of the Company or cooperating companies.

Entry into the new fields

KONDOTEC is actively undertaking entry into new fields in which it expects growth. To expand our business in the field of maintenance and repair of aging social infrastructure, we have acquired three companies engaged in scaffolding construction (see table below) and established Nippon Scaffolding Holdings Co., Ltd. as an intermediate holding company to oversee them. Working around this core, we will expand the areas we handle by sharing the know-how of the companies, which differ in their business areas and the construction properties in which they specialize, and will otherwise aim to achieve synergies among them.
At the same time, there is a tendency in the construction industry to replace the main material of iron with aluminum, which is suitable for weight saving. Therefore, the demand for aluminum is expected to rise. Given this condition,the Company has acquired KURIYAMA ALUMINUM Co., Ltd., which is involved in the manufacturing and development of aluminum extrusions, in aiming to expand our product and merchandise line up with new materials.
Going forward, we will continue striving to enter new fields by utilizing our wide range of business fields as the KONDOTEC Group.

Group companies assumed the maintenance/repair field
TECBUILD CO., LTD. TOKAI STEP CO., LTD. FUKOKU, Ltd.
Location (Head office)
Ota-ku, Tokyo
(Business area)
Kanto, Hokuriku, Kansai,Chugoku, Kyusyu
(Head office)
Fujieda-shi, Shizuoka
(Business area)
Kanto, Tokai
(Head office)
Sendai-shi, Miyagi
(Business area)
Tohoku
Specialty ・low to mid-rise buildings
・Rental of scaffolding
 equipment

Detached housing construction

・mid to high-rise buildings
・low-rise buildings


Accommodation construction

・Bridge
・mid to high-rise buildings


Aqueduct bridge repair




Production Innovation through Capital Investment in Factories

Coexisting with local communities

Operating site Opening Plan

Currently,KONDOTEC has 48 operating sites (as of March 31, 2024). Among sales activities areas, a precondition for selecting areas for operating site openings is that the area should be far away and have prospects for increased sales. We have expanded areas for operating site openings by way of branching out from relatively large-scale operating sites (branch class).
The Company makes sure to establish warehouses to store inventory at operating sites. Because we make deliveries, as for the location of operating sites, we select places near expressway ICs, or industrial parks that are unlikely to affect neighboring residents in terms of noise and traffic.
As for personnel, while several employees from branch operating sites are transferred at the time of a new operating site opening, we recruit several local people to help create employment in the community.

Response to disasters and contribution to them

With the inventories of necessary materials at the time of disasters at 48 operating sites across Japan, we have established a system to deliver necessary materials immediately even if the disaster is just local, thereby contributing to the security and safety of local communities.

 Examples of disaster-related merchandise
[Flexible Container bag]
[Tarpaulin, sandbag, etc.]
[Net, sheet] and others

 Examples for use of container bag
It is used in various scene such as transportation and storage of feed, fertilizer, resin pellets, industrial waste, etc., and as a large-size sandbag for rubble clearing, decontamination, and recovery work after disasters.

Development of human resources and encouragement of diversity, equity and inclusion

Policy on human resources development

To contribute to sustainable growth and long-term enhancement of our corporate value as a “proposal-oriented company” that leverages our employees' diversity by creating a work environment where all employees can engage in active roles with motivation, we have set "respect for the individuality and values of employees from diverse backgrounds" and "creation of a working environment in which all employees can fully display their capabilities and work with a sense of purpose" as basic policies.

Enhancement of remuneration and benefits programs

With the introduction of remuneration and benefits programs, including those listed below, the Company strives to improve motivation for employees while increasing corporate value in the medium and long term.

【 Employee incentive system 】
< Restricted stock (RS) program for employees >

In 2013, we introduced an employee stock ownership plan (ESOP) as a program that offers shares to employees who have been promoted. Upon termination of the ESOP in 2021, we replaced it with a restricted stock (RS) program for employees. By issuing shares as an incentive to employees, we encourage employees to boost their motivation and morale toward enhancing performance.



【 Benefits programs 】
<GLTD (Group Long Term Disability income indemnity insurance)>

Since October 2019, we have introduced the “GLTD (group long term disability income indemnity insurance)”, which indemnifies a certain revenue up to 60 years old (retirement age) for employees who become unable to work for a long period of time due to illness or injury. While widespread in the U.S., the GLTD program is a relatively new program in Japan, which was permitted in 1994. With the introduction of GLTD, we have covered a long-term “Risk of becoming unable to work“ to eliminate uncertainties for employees to work, striving to improve their motivation.

<Employees shareholders association>

The employees shareholders association offers financial incentives equivalent to 5% of the contribution. When employees join us, we give them an outline of the association and, in addition, provide them with education on the necessary costs in life estimated from future life events and on asset building.

<Corporate-type defined contribution pension plan>

We introduced the corporate-type definite contribution pension program in 2014 for ensuring employees' income after their retirement. We note that many employees make their own additional contributions to the program.

<Workplace accumulation-type Nippon individual saving account (NISA) program>

We introduced a workplace accumulation-type NISA program on December 1, 2019. Under the program, employees may invest the amount withheld from their salaries in their tax-exempt accounts.

Childbirth by employees and spouses
  Those who newly took childcare leave during the period Return to work rate after childcare leave during the period Rate of those currently on childcare leave who started childcare leave during the period
April 1, 2023
– March 31, 2024
5 persons 40% 60%
April 1, 2022
– March 31, 2023
13 persons 100% -
April 1, 2021
– March 31, 2022
6 persons 100% -
April 1, 2020
– March 31, 2021
7 persons 100% -
  Number of men taking childcare leave
April 1, 2023
– March 31, 2024
2 persons
April 1, 2022
– March 31, 2023
8 persons
April 1, 2021
– March 31, 2022
2 persons
April 1, 2020
– March 31, 2021
1 person
Indicators and targets related to diversity

In hiring employees, we respect the diverse characteristics of individuals, including age, gender and nationality. Moreover, with the introduction of year-round recruitment (for 2008 recruits and after), we have been hiring employees with various careers, experience, etc.
Further, we offer support to athletes as well as appoint highly motivated contract workers as regular employees. We are expanding support for the participation of women in the workplace, and have appointed three female Directors in order to incorporate diverse values and perspectives into the business management of the Company.
Based on our recognition of the need to ensure diversity, particularly among the managerial-position staff who play central roles in management, we have set the following best-effort targets for ratios of mid-career hires, women, and foreign nationals in managerial positions.

Indicators
Actual
(As of March 31, 2024)
Target Achievement period
Ratio of mid-career hires in managerial positions 31.4% Maintaining a range of 20%-40% March 31, 2025
Ratio of women in managerial positions 1.0% 5% or higher March 31, 2030
Ratio of female employees with job titles
(excluding managerial positions)
9.6% 15% or higher March 31, 2030
Number of foreign nationals in managerial positions 1 person Maintaining of the status quo or higher March 31, 2025

(Notes)Number of foreign nationals in managerial positions only, as an indicator for the Group as a whole.
The three items other than number of foreign nationals in managerial positions are indicators for the Company.

Appointment of a female executive members

Promotion of Health Management and Occupational Safety and Health

For employees' health and safety

We are taking the following initiatives to ensure the safety and health of employees. Representative matters in need of safety measures in conducting business activities include receiving and shipping operations in warehouses, marketing activities, delivery of products and merchandise, and production activities in factories.

Work Style Reform and Work-Life Balance

We aim to create a corporate culture where employees can have “a fulfilling individual life and involvement in society,” while promoting work style reform to enable them to do “worthwhile and high-quality work” efficiently.
In 2014, we conducted training for all supervisors aiming for more efficient operations and less overtime work, and have been promoting work style reform since then, on the condition of improved earnings. Since 2017 led by head office, we have been engaged in reform for efficient operations by reviewing various operational rules, decreasing collections by sales staff, reducing internal documents, and reviewing approving authority.
As an indicator to realize appropriate work-life balance, we have set a target for paid vacation acquisition with an acquisition rate of 70% or higher and internally publish the figures for each section to promote the acquisition.

Promotion of communication with stakeholders

Constructive dialogues with shareholders and investors

KONDOTEC recognizes the importance of having stakeholders gain an understanding of the KONDOTEC Group. We therefore organize General Meeting of Shareholders, briefings for individual investors and financial results briefings and take part in investor relations events as a way to enhance dialogues with shareholders and investors. We endeavor to give careful explanations to stakeholders in accordance with the IR policy and to disclose information quickly in consideration of fairness, accuracy, and timeliness.
In parallel with constructive dialogues with shareholders and investors as mentioned above, we will make strategic investment that will help increase the Group's corporate value through M&A and other initiatives. We will also strive to improve profitability through aggressive expansion of business investment for growth and we will work to improve capital efficiency.

Basic policy concerning constructive dialogues with shareholders

KONDOTEC promotes constructive dialogues with shareholders through holding briefings for individual investors and financial results briefings, in addition to the general meeting of shareholders and participating in IR fairs.
We also appoint the Director who manages the General Affairs Division responsible for IR as the Director in charge of IR, and share information with other departments to strengthen cooperation. In order to reflect the opinions of shareholders on management, when important feedback given from an objective viewpoint arises, we make an effort to report the matter to the Board of Directors as needed.
In addition, the Company has put in place its IR Policy, which defines the quiet period and other matters, and Internal Information Management Regulations, which set forth rules on communicating important facts and internal information, and performs accordingly in managing information.

Invigoration of the General Meeting of Shareholders

KONDOTEC regards the General Meeting of Shareholders as an important opportunity to communicate with shareholders.In order to invigorate the General Meeting of Shareholders we strive to have as many shareholders as possible participate the General Meeting of Shareholders, understand us, and secure a sufficient period for examining proposals for the Meeting.

IR activities

Bearing in mind the need to offer information disclosure that takes into account fairness, accuracy and timeliness, KONDOTEC organizes briefings for analysts by the President and individual meetings, participates actively in IR events for individual investors, and discloses IR materials via the Company’s website.
Comments, etc. obtained through dialogue with institutional investors and analysts are shared with the President and General Manager of Management Headquarters and reported to the Board of Directors as necessary.
Going forward, we will strive for continued growth and long-term corporate value enhancement as well as actively engage in dialogue with investors as a listed company on the Prime Market.

Track records of dialogue with institutional investors and analysts (FY 2024)

* Including Online

Main themes of dialogue Topics for the fiscal year, business environment, Medium-term Management Plan, etc.

Actual coverage (June 2024)
Actual participation in IR events for individual investors (FY 2024)

Appropriate Information Disclosure