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Group Policy

TOHO Charter

The TOHO Group inherits the management philosophy of our founder, Ichizo Kobayashi: We widely provide inspiring entertainment to the general public; We owe our business to the happiness of the customers; and We always act with vivacity, modesty, fairness and grace. In order to contribute positively to cultural and economic development, we declare as follows.

  • We provide high quality services and products to satisfy our customers.
  • We always deal fairly to earn the trust of our business partners.
  • We make our work environment comfortable so that our co-workers can work in a rewarding and healthy manner.
  • In order to respond to requests from our shareholders, we will ensure the effective functioning of corporate governance, disclose appropriate management information in a timely manner, and enhance our business performance and corporate value.
  • In order to actively fulfill our corporate social responsibility, we do not tolerate inequality; instead, we respect human rights, contribute to local communities, care about preserving the natural environment, and play an active role in the development of a diverse, inclusive and sustainable society.

Implemented: November 30, 2004
Revised: July 20, 2007

March 1, 2023

Sustainability Policy

The TOHO Group seeks to contribute to the realization of a society that is happy and enriched for everyone.

TOHO group’s sustainability efforts will focus on the following important issues:

Creating a healthy work environment where everyone feels valued for their contributions

Promoting environmentally friendly business practices that are protective of our planet

Respecting human rights and foster a constructive and fair corporate culture

Creating a rich film and theater culture and pass it on to the next generation

TOHO Group Human Rights Policy

  • Respect for Human Rights

    Based on the mission of our founder, Ichizo Kobayashi, “to widely provide inspiring entertainment to the general public," we respect the human rights of all people, including customers, all executives and employees of the TOHO Group, and its business partners and shareholders, in order to contribute to the creation of rich culture and pass it on to future generations through our corporate activities in film, animation, theaters and real estate.

  • Commitment to International Human Rights Standards

    We support the International Bill of Human Rights and the International Labour Organization’s Declaration on Fundamental Principles and Rights at Work. The formulation of the TOHO Group Human Rights Policy and the conducting of our business in accordance with this policy are based on the UN Guiding Principles on Business and Human Rights.

  • Compliance with Applicable Laws

    We comply with all applicable laws in the countries and regions where we operate our business.

  • Scope of this Policy

    This policy applies to all executives and employees of the TOHO Group. In addition, we inform business partners of the TOHO Group Human Rights Policy and engage with them to ensure compliance.

  • Human Rights Due Diligence

    Following procedures based on the UN Guiding Principles on Business and Human Rights, we implement a human rights due diligence to identify issues related to human rights.

  • Remediation

    If our corporate activities have a negative impact on human rights, we will take appropriate measures to rectify the situation. In addition, we will maintain appropriate grievance mechanisms that can be accessed by anyone whose human rights have been adversely impacted.

  • Education

    We will continuously educate all executives and employees of the TOHO Group in order to facilitate understanding, implementation, permeation and establishment of the TOHO Group Human Rights Policy.

  • Information Disclosure

    We regularly disclose information on our human rights initiatives through the TOHO Group official corporate website.

  • Stakeholder Dialogue

    We engage in dialogue and discussion with stakeholders to promote respect for human rights.

Code of Conduct

All TOHO Group executives and employees shall aim to put the values of the TOHO Charter into practice by adhering to the following code of conduct.

  • Contribution to the culture of film, animation and theaters

    1. In order to create and develop rich culture around film, animation and theaters and pass it on to the next generation, we provide high-quality products and services that are sound and conducive to the betterment of society.

  • Compliance with social norms

    1. We will comply with all applicable laws, accounting standards, company rules, contracts, and other social norms. We will not do anything that may violate social norms or may be subject to social censure. If we violate a social norm in some way, we will not hide such fact.
    2. If we become aware of any conduct that may violate social norms, we will work to correct it by discussing it with our superiors, colleagues, business partners and other co-workers, or by reporting it to the Reporting and Consultation Desk established within the TOHO Group.
    3. We will not treat whistleblowers who approach the Reporting and Consultation Desk in a disadvantageous manner.
    4. If we learn of any conduct of our business partners that violates social norms, we will encourage them to take corrective action so that together we can contribute to the development of a better society.

  • Business Development and Continuity

    1. We conduct our business through honest and courteous communication with all people.
    2. In order to fulfill our social responsibility, we will disseminate factual and accurate information in a timely, appropriate and proactive manner.
    3. Company assets and information, whether tangible or intangible, are properly managed and effectively utilized.
    4. To ensure business continuity, we will make adequate preparations against threats such as natural disasters, terrorism and cyber-attacks.

  • Fair Corporate Activities

    1. We will not engage in any activities that are detrimental to the interests of the company.
    2. We will not have any relationship, direct or indirect, with antisocial forces.
    3. We will not give or receive entertainment or gifts that deviate from the bounds of social common sense.
    4. We will not provide unfair benefits to any party.
    5. We will not do anything that may impede free competition.
    6. We will not divulge or commit acts that otherwise lead to the divulgence of confidential or insider information about the company or our business partners.

  • Work Environments

    1. We will develop and maintain safe and healthy work environments.
    2. We respect the diversity and individuality of the people with whom we work.
    3. We will create and maintain environments in which our co-workers can achieve a work-life balance.
    4. We will establish and maintain environments in which our co-workers can freely express and discuss their opinions.

  • Sustainability and Respect for Human Rights

    1. We will comply with the "TOHO Group Human Rights Policy" and act in accordance with the "Sustainability Policy.”
    2. In all our corporate activities, we will give full consideration to the optimization of resource and energy use and the preservation of the natural environment, and aim to provide products and services in a manner that has less impact on the environment.
    3. In case of accident or disaster, respect for human life is our first priority.
    4. We respect the human rights of all people equally and to the maximum extent possible.
    5. We do not tolerate any unfair discrimination, violence, bullying, character denial, intimidation, harassment or other human rights violations against any person.
    6. We do not tolerate any kind of unjust exploitation, including slave labor, child labor, forced labor and human trafficking.

Actions to Implement Management That Is Conscious of Cost of Capital and Share Price

  1. Current Assessment

    The Company believes that generating return on equity (ROE) in excess of cost of shareholders' equity is important for improving corporate value. The Company evaluates the cost of shareholders' equity to be around 4-5% in its external assessment(*) based on the CAPM. The ROE against this was 10.4% in the previous fiscal year (fiscal year ended February 28, 2024), and the Company has been able to achieve return on capital that exceeds the cost of shareholders' equity.

    The PBR is currently around 2x, and PER is in the mid-20x range, which is above the average for the Prime Market in TSE, and the Company believes that it has received a certain degree of recognition from the stock market in terms of growth potential and other factors.

    (*) Evaluation by Plutus Consulting co., Ltd.
    Reference: CAPM calculation assumptions
    -Beta: around 0.5 to 0.7
    -Market risk premium 6.0
    -Risk-free interest rate 1.0

  2. Targets and Initiatives

    Based on the above evaluation, the Company believes that promoting various initiatives in line with the goals and strategies set forth in "TOHO VISION 2032 - Toho Group Management Strategy" will lead to further enhancement of the Group's corporate value.

    In "TOHO VISION 2032 - Toho Group Management Strategy,” we set a target of ROE of around 8% to 10% in “Long-term Vision 2032” and more than 8% ROE in “Medium-Term Management Plan 2025”. In addition to improving profitability by promoting growth strategies, we will continue to improve capital efficiency through appropriate shareholder returns and strive to achieve sustainable return on capital that exceeds the cost of shareholders' equity.