Corporate Social Responsibility Report...our social responsibility through our main-stay business. In the current fiscal year, we raised a slogan of“Let us offer “Waku-waku”:the

Shinjuku Oak Tower 29F6-8-1 Nishishinjuku, Shinjuku-ku, Tokyo 163-6029, JAPANURL: www.his.co.jp Corporate Social Responsibility Report

H.I.S. CSR Report201410450070

CSR DepartmentH.I.S. CO., LTD

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■CONTENTS

Chairman’s Greeting ...................................................03President’s Commitment ............................................04

Feature StoryWe p ro v i de “ Waku -waku ”: t he t h r i l l , t h e entertainment and amazement are provided by the “power of travel”, which leads to the creation of a sustainable society in the future. ..................06

H.I.S. CSR ManagementCorporate Philosophy and CSR ................................09CSR Promotion Policy and structure ........................10

The Report Based on Seven Core Subjects of ISO26000“Corporate Management” .........................................11“Consumer Issues” .......................................................12“Community Participation and Community Development” ...........................15“Human Rights” .............................................................18“Employment Practices” .............................................20“Fair Operating Practices” .........................................22“Environment” ...............................................................24

Business Overview and Value Distribution to Stakeholders .........................26Business Operations of Each Group Company ....28ISO26000 Core Subject Comparative Table ........30Third-party Opinion .....................................................31

Editorial Principles

This report serves the function of not only presenting our implementation of CSR to our stakeholders butalso acting as a medium for promoting communicationwith you.I SO26000 was used as a checkl i s t fo r CSR implementation and we declared that social responsibility shall rest on the seven core subjects. Furthermore, we used the Sustainability Reporting Guidelines2006 as a reference for reporting on the three areas of social, environmental and economic sustainability.v

Scope and Time Period【Scope】Scope is the H.I.S. Group, and indications have been made when information is not covered this scope.

【Time Period】October 2013（11/01/2012‒10/31/2013）Indications have been made where information is not covered this time period.

【Publication】January 2014

【Guidelines Used for Reference】ISO26000；2010 （Guidance on Social Responsibility） First EditionGRI Guideline 2011 （Edition 3.1）

DisclaimerNumbers in the graphs and charts appearing in this report have been rounded up and thus may conflict with total values. Further, some portions of the previous year’s data have been revised due to scope expansion and revised calculation methods.

To contribute to the advancement of world peace and mutual understanding by increasing the knowledge of people around the world through tourism, and thereby overcoming the differences of nationality, race, culture and religion.

H.I.S. CSR Report 20142

H.I.S. intends to challenge to deliver a lot of smiles and wonder to the people in the world.

Travel can help connect people in the world across borders, where new encounter and communication are taken place transcending race, religion and culture, thus making it possible to nurture mutual understanding and trust. Such new discovery and wonder, which cannot be attained in the daily life, could sometimes become a big turning point of life. Nobody wants to fight with other regions and countries with unforgettable beautiful sceneries that give them a lot of wonder when they visit there. Travel is a peace industry that contributes to world peace.We, H.I.S., has continued to create new travel models while challenging the conventional perception and systems in order to make travel more reasonable and freer. More than 30 years have passed since the start of our efforts in this area, and now it has become quite common to travel easily alone. However, even now, the challenge is continuing since we have even bigger dreams.We have created a comfortable and future-oriented “Smart House” that can provide all necessary electric power by the latest air condition system that uses radiant heat, and

natural energies such as solar and wind powers by putting in various state-of-the art technologies of Japan. Now taking advantage of the data obtained from there, we have started to design and construct the world-first “Smart House” with extreme energy saving efficiency, with its opening set in 2015. In addition to environment-related technologies, the state-of-the-art robot and sensor technologies that Japan boasts of will be utilized to create a model of a hotel that is very comfortable in spite of its low boarding cost. We are thinking of offering it not only in Japan but also into the world, and thus making travel closer at hand to even more people. In the past when we started to make a challenge as a LCC, people dismissed it as reckless. However, now LCC has been established as one of the important selections as a form of travel. We will make efforts to succeed in our challenge towards the “Smart House”, thus offering travel opportunities to many people and delivering smiles and wonder to the people in the world. We will contribute to world peace through travel, which is the mission of H.I.S.. There is no end for our challenge.

Chairman

Hideo Sawada

3H.I.S. CSR Report 2014

President’s Commitment h

Realizing our mission to shoulder the travel industry.

H.I.S. asserts in its corporate philosophy“To contribute to the advancement of world peace and mutual understanding by increasing the knowledge of people around the world through tourism, and thereby overcoming the diff erences of nationality, race, culture and religion.” In an effort to realize this mission, H.I.S. intends to fulfill our social responsibility through our main-stay business. In the current fiscal year, we raised a slogan of“Let us offer “Waku-waku”:the thrill, the entertainment and amazement to our customers”, which constitutes the starting point of H.I.S. at the time of its foundation. We believe that this idea should be rooted in the base of the travel industry in which we develop. Also, as a concrete standard of conduct, new “H.I.S. DNA” has been stipulated. We will continue to create travel that can bring smiles and wonder to our customers as paying constant attention to our origin and the role that we have to fulfi ll.

Our continuous challenges have made the pleasure of travel attainable and closer to many people that could be enjoyed only by wealthy people 30 years ago. Further, we have expanded the possibility of free individual travel by transmitting ideas in an easier form. Now, overseas travel has certainly become closer to many people. However, there still exist a lot of attractive regions and cultures in the world. Making best use of our outlets located in various regions in the world, we are proposing pleasant and comfortable travel at a low price with attractive travel plans and services such as newly introduced “Travel concierge” that helps support free travel in local areas.In addition, besides normal sight-seeing tours, we have designed and executed “volunteer study tours” in various categories such as international cooperation, environmental secur i ty , educat ion and wel fare support , in which participants see, think and learn what is happening there on the spot together with supporters and local people in the various places in the world.

To contribute to the advancement of world peace and mutual understanding

Representative Director, President

Akira Hirabayashi

Challenge to propose moreattractive and comfortable travel

H.I.S. CSR Report 20144

safety and comfort of travel. In order to improve the quality of travel products, H.I.S. has set up the “Excellent Travel Research Office”, in which we have continued to check the contents of travel from the standpoint of customers to offer better products. Further, regarding the observance of laws, the management method and safety standard related to facilities for use and the selection of cars, we have provided constant education, research and training to our affi liated companies who conduct business overseas in co-operation with us. Also, in “Nice Workplace Promotion Office, we have been tackling with various plans to create a comfortable working environment for our employees.Recently, we have seen political frictions with neighboring countries. Because of that very situation, it is becoming much more important to communicate and understand those countries through travel. In that sense, the social role of travel has become more important. H.I.S. will continue to grow further as a company who offers ““Waku-waku”:the thrill, the entertainment and amazements”, and develop constantly together with our stakeholders as seeking mutual understanding with world people and peace. We are looking forward to receiving a constant support and encouragement from our customers.

The number of H.I.S.’s overseas branches have expanded to 163 in 54 countries in the world. Our target has been set at 700 overseas and combined with 1,000 branches in Japan. The expansion and strengthening of overseas branches are an important issue for H.I.S. to make a new advancement. As for the expansion of branches, using the already-established base branches, we have opened a satellite shop in Thailand and Indonesia, and plan to open new offices in undeveloped areas such as ump, Peru, Morocco, South Africa and Nepal, and further in Central and South America and African countries.Based on the opening of such branches, we, from now on, will attempt to strengthen “local area oriented sightseeing business”, that is, we will make efforts to design and plan attractive travel utilizing their strong information collection power in local areas where people travel. Through the above-mentioned measures, we intend to strengthen our efforts to stimulate travel demand in local areas. Also as part of the plan, we aggressively proceed with developing travel among our overseas outlets without intervention from Japanese offi ces. Through the promotion of such travel plans originated in our local branches, we will generate further economic development and job creation in such areas. Strong travel demand expected mainly in Asia In order to meet strong travel demand in Asia, which is expected in the future, H.I.S. group has established an airline company “Asia Atlantic Airlines” specialized in international charter business. We will further expand our travel plans, and at the same time restrain travel prices in high travel seasons in a reasonable and new business style.

To support such overseas branches, it is urgent for us to t ra in sta f fs who have st rong wi l l and chal lenging mentality to succeed in the world business scenes. In order to achieve this objective, we have set up the “open application system” in which domestic staffs who wish to work overseas can apply for a post in a self-designated branch offices. In addition, we have made it possible for staffs to get to know the contents of business and working conditions in overseas offices by introducing “overseas business training system” and “sub-conductor system”, which makes i t easier for staf fs to chal lenge toward working overseas.Further, in overseas offices, besides sending staffs from Japan, we intend to focus on hiring and training capable people locally, and train them to become a strong power in the task of developing travel in regions and countries where they are based. For that purpose, we first accept locally-hired staffs in Japan, and train them until they have acquired H.I.S. policy and DNA, and after that they are posted in the country of their origin.

The most important mission of the travel industry is to off er

Jump to the height of world H.I.S.

＊Local area-oriented tour is the one in which local people take an initiative to create travel plans that highlight the attractiveness of the locality.

Accelerate to train global human resources

As a company who off ers“Waku-waku”:the thrill, the entertainment and amazement


I wanted to become a member of Japan Overseas Cooperation Volunteer. However I could not have the clear image of their ac tual ac t iv i t y, therefore I participated in this tour to see the spot with my own eyes. When visiting “Satitto elementary school”, I drew for them the i l lustrat ion of characters of Japanese animation, which pupils of the school enjoyed very much, and they sang a song, “Sukiyaki” for us. The memory of the visit is still engraved vividly in my mind, because I could communicate with a lot of children even though I did not understand the language. Before the tour, I was thinking of extending some assistance to an underdeveloped country such as Laos, however that

kind of idea has totally changed after intermingling with local people. People of Laos are very warm and seem to have spiritual affluence that Japanese people have lost. Those who need assistance may be the side of Japanese. Therefore, I felt that what we really need is not simple assistance but the activity of international “cooperation” such as Japan Overseas Cooperation Volunteers. As I have had a wonderful experience that cannot be obtained in normal tours, I have come up with a clear idea about what I really want to do. Since there are many people who have the same desire participating in such tours, we could also have a good opportunity to make friends. At any rate, this is a kind of tour that gives us a lot of things.

In this study tour, you can have a wonderful experience that cannot be obtained in normal tours.

who participated in the tour, “Seven days to get to know Laos”. Ms. Ogawa

Under the full cooperation of JICA(Japan International Cooperation Agency), H.I.S. has inspected the activity of “Japan Overseas Cooperation Volunteers”, and further to communicate with local people and children, we have been conducting “JICA Support Project” in the countries where JICA operates. The “Seven days to get to know Laos” is one of the projects. Laos is an Asia’s later underdeveloped country, in which we ,above all, visited the most undeveloped southern region, and inspected the spot where JICA staff were promoting the region-oriented sightseeing business together with local volunteers who were involved in the development of sightseeing business.

We have mingled with minority groups, and experienced the culture of Laos such as traditional rituals and “Takuhai”, Thereafter, we have proposed “catch phrases for sightseeing promotion” to the Department of Tourism”. Also, we inspected the “One Village one Product Project”, one of the pillars of region development, for which we have suggested ideas about new products. At the same time, we visited elementary schools and hospitals to exchange with local people, thus conducting participation-type study tours in which activities of cooperation volunteers can be experienced.

●Memory photos with villagers

●The reception held with the participation of Royal family members

●Children who are enjoying paper folding

Series of front activities of JICA

:the thrill, the entertainment and amazement

The front of JICA’s activities

Seven days to get to know Laos

Children’s desire becomes bonds and connects to world people

Bonds of friendship festival in Thailand

●The hall of BACC where art works of children are exhibited

●Scene of the workshop at the elementary school

●Exchange with children at an orphanage in Cambodia, and six days in Angkor Watt●Seven days in Laos to support school lunch and communicate with people at an

elementary school ●Inspection of the activity of UNESCO, and communication with Cambodian

people during 6 days●5 days in Thailand to do voluntary work in an orphanage and to experience in

teaching Japanese at an elementary school●Let’ s teach Japanese to children in Bali! 5 days in Bali in Indonesia to do

volunteer work at an orphanage ●Visit slums and communicate with children through sports! 5 days in Cebu Island in Philippine ●4 days in Manila to communicate with children there who are living strongly

despite in poverty ●Consider how to support infants at infant nursing institution! Six days in Vietnam

to volunteer for child care●7 and 11 days activities at Calcutta Mother Teresa facility in India to feel the

heart of Mother Teresa ●5 days study tour in Myanmar to learn the current lights and shadows of Myanmar ●6 days in Vietnam to learn Vietnam from wars and to visit “Tuzu Hospital” and a

welfare facility to communicate

●8 days in Cambodia to build a house with Cambodian families●6 days in a world heritage town “Hoi an” to contribute to revitalizing the town●8 days study tour at Harvard University to participate in its social enterprise

promotion festival ●7 days in Silicon Valley to learn state-of-the art IT●7 days to inspect microcredit in Mexico●5 days in Cambodia to learn social enterprises●6 days in Bangladesh to inspect new business style (BRAC/Grameen Bank)●6 days in Bangladesh to discover the future possibility of the mother house developing country●8 days in Chernobyl to visit its nuclear power plant and to remember the accident ●10 days study tour in Tanzania to learn agricultural BOP business on the spot ●7 days in farm villages in Indonesia to provide them with nutrition education●6 days in Sri Lanka to learn the country at the activity front of JICA●9 days in Kenya to know the country at the activity front of JICA●7 days in Laos to know the country at the activity front of JICA●7 days in Bangladesh to know the country at the activity front of JICA ●2 days to know the current situation of Fukushima and to consider its future●3 days in Taiwan to participate in the bond art festival

●Cooperation with OISCA: 6 days in Sri Lanka to do volunteer work for afforestation with children and communicate with them

●Cooperation with WWF: 4 days in Ishigaki Island to learn the preserving activities of world-rare coral reef and to learn its culture

●Cooperation with JEEF: 8 days in Bhutan to stay at a farmer’ s house and to support exchange activities

●5 and 6 days in Mongol to make a cultural exchange with Mongolian nomads ●4 days in world heritage Ogasawara to learn its natural environment●4 days in world heritage Yakushima Island to participate in the activity of natural

environment protection

Lists of main study tours

List of main tours

For tour details, please visit: http://eco.his-j.com/volunteer/

For details of tours, please visit: http://eco.his-j.com/eco/

Purposes of study tours

Supporting disaster-stricken areas

Support and education of the activities of NPOs and NGOs

International cooperation activitiesSolution of poverty

Volunteers

Education, medical support

International communication

Environmental preservation and protection

Study on social issues and the cultivation of problem solution power

Environmental education and nature experimenting study

Inspection of local areas, fieldwork

Promotion and educationof world peace

The purpose of

a study tour is

to learn something thr

ough

travel (by visiting loc

al places)

in order to create

a

sustainable society

in the future.

Travel has the “power” to create better future. When you travel, you learn a lot.You learn the variety of the world by directly visiting a country and feeling their culture and sense of value.Also, we can learn the universal value of humans by communicating with local people. When communicating and linking with them through travel crossing country borders, we are able to share a social issue as the common issue of the world. Imaging the image of the ideal future world, we can acquire the “power” to think about future it selves and to behave. Travel has that kind of “power”. We believe in such a “power of travel”.

Inviting children who study at painting schools across the nation to BACC (Bangkok Culture Center), we have conducted an art session, where roughly 8,000 paintings were exhibited with the theme on the future of Japanese and Thai children and families. In the reception for all the participants, with the participation of Royal family members, we held an exchange meeting for children and their parents with the same desire. We also visited the elementary school in the suburbs of

Bangkok that suffered from a flood in 2011, and exchanged with local children. At the same time, we held a workshop related to art. We have prepared optional tours available only in Thailand such as the experience of elephant ride, Ayutthaya tour and the viewing of traditional dance on a water restaurant . For chi ldren , overseas travel and the experience of global communication is a good asset, which could become an impetus for them to nurture dreams toward the future.

Study toursinternationalcooperation,inspection ）（

Study tourInternational

communication）（

Specialfeature

:the “Waku-waku”are provided by thewhich leads to the creation of a sustainable society in the future.

6 H.I.S. CSR Report 2014

I wanted to become a member of Japan Overseas Cooperation Volunteer. However I could not have the clear image of their ac tual ac t iv i t y, therefore I participated in this tour to see the spot with my own eyes. When visiting “Satitto elementary school”, I drew for them the i l lustrat ion of characters of Japanese animation, which pupils of the school enjoyed very much, and they sang a song, “Sukiyaki” for us. The memory of the visit is still engraved vividly in my mind, because I could communicate with a lot of children even though I did not understand the language. Before the tour, I was thinking of extending some assistance to an underdeveloped country such as Laos, however that

kind of idea has totally changed after intermingling with local people. People of Laos are very warm and seem to have spiritual affluence that Japanese people have lost. Those who need assistance may be the side of Japanese. Therefore, I felt that what we really need is not simple assistance but the activity of international “cooperation” such as Japan Overseas Cooperation Volunteers. As I have had a wonderful experience that cannot be obtained in normal tours, I have come up with a clear idea about what I really want to do. Since there are many people who have the same desire participating in such tours, we could also have a good opportunity to make friends. At any rate, this is a kind of tour that gives us a lot of things.

In this study tour, you can have a wonderful experience that cannot be obtained in normal tours.

who participated in the tour, “Seven days to get to know Laos”. Ms. Ogawa

Under the full cooperation of JICA(Japan International Cooperation Agency), H.I.S. has inspected the activity of “Japan Overseas Cooperation Volunteers”, and further to communicate with local people and children, we have been conducting “JICA Support Project” in the countries where JICA operates. The “Seven days to get to know Laos” is one of the projects. Laos is an Asia’s later underdeveloped country, in which we ,above all, visited the most undeveloped southern region, and inspected the spot where JICA staff were promoting the region-oriented sightseeing business together with local volunteers who were involved in the development of sightseeing business.

We have mingled with minority groups, and experienced the culture of Laos such as traditional rituals and “Takuhai”, Thereafter, we have proposed “catch phrases for sightseeing promotion” to the Department of Tourism”. Also, we inspected the “One Village one Product Project”, one of the pillars of region development, for which we have suggested ideas about new products. At the same time, we visited elementary schools and hospitals to exchange with local people, thus conducting participation-type study tours in which activities of cooperation volunteers can be experienced.

●Memory photos with villagers

●The reception held with the participation of Royal family members

●Children who are enjoying paper folding

Series of front activities of JICA

:the thrill, the entertainment and amazement

The front of JICA’s activities

Seven days to get to know Laos

Children’s desire becomes bonds and connects to world people

Bonds of friendship festival in Thailand

●The hall of BACC where art works of children are exhibited

●Scene of the workshop at the elementary school

●Exchange with children at an orphanage in Cambodia, and six days in Angkor Watt●Seven days in Laos to support school lunch and communicate with people at an

elementary school ●Inspection of the activity of UNESCO, and communication with Cambodian

people during 6 days●5 days in Thailand to do voluntary work in an orphanage and to experience in

teaching Japanese at an elementary school●Let’ s teach Japanese to children in Bali! 5 days in Bali in Indonesia to do

volunteer work at an orphanage ●Visit slums and communicate with children through sports! 5 days in Cebu Island in Philippine ●4 days in Manila to communicate with children there who are living strongly

despite in poverty ●Consider how to support infants at infant nursing institution! Six days in Vietnam

to volunteer for child care●7 and 11 days activities at Calcutta Mother Teresa facility in India to feel the

heart of Mother Teresa ●5 days study tour in Myanmar to learn the current lights and shadows of Myanmar ●6 days in Vietnam to learn Vietnam from wars and to visit “Tuzu Hospital” and a

welfare facility to communicate

●8 days in Cambodia to build a house with Cambodian families●6 days in a world heritage town “Hoi an” to contribute to revitalizing the town●8 days study tour at Harvard University to participate in its social enterprise

promotion festival ●7 days in Silicon Valley to learn state-of-the art IT●7 days to inspect microcredit in Mexico●5 days in Cambodia to learn social enterprises●6 days in Bangladesh to inspect new business style (BRAC/Grameen Bank)●6 days in Bangladesh to discover the future possibility of the mother house developing country●8 days in Chernobyl to visit its nuclear power plant and to remember the accident ●10 days study tour in Tanzania to learn agricultural BOP business on the spot ●7 days in farm villages in Indonesia to provide them with nutrition education●6 days in Sri Lanka to learn the country at the activity front of JICA●9 days in Kenya to know the country at the activity front of JICA●7 days in Laos to know the country at the activity front of JICA●7 days in Bangladesh to know the country at the activity front of JICA ●2 days to know the current situation of Fukushima and to consider its future●3 days in Taiwan to participate in the bond art festival

●Cooperation with OISCA: 6 days in Sri Lanka to do volunteer work for afforestation with children and communicate with them

●Cooperation with WWF: 4 days in Ishigaki Island to learn the preserving activities of world-rare coral reef and to learn its culture

●Cooperation with JEEF: 8 days in Bhutan to stay at a farmer’ s house and to support exchange activities

●5 and 6 days in Mongol to make a cultural exchange with Mongolian nomads ●4 days in world heritage Ogasawara to learn its natural environment●4 days in world heritage Yakushima Island to participate in the activity of natural

environment protection


List of main tours

For tour details, please visit: http://eco.his-j.com/volunteer/

For details of tours, please visit: http://eco.his-j.com/eco/

Purposes of study tours


Support and education of the activities of NPOs and NGOs

International cooperation activitiesSolution of poverty

Volunteers


International communication

Environmental preservation and protection

Study on social issues and the cultivation of problem solution power

Environmental education and nature experimenting study

Inspection of local areas, fieldwork

Promotion and educationof world peace




The purpose of

a study tour is

to learn something thr

ough

travel (by visiting loc

al places)

in order to create

a

sustainable society

in the future.

Travel has the “power” to create better future. When you travel, you learn a lot.You learn the variety of the world by directly visiting a country and feeling their culture and sense of value.Also, we can learn the universal value of humans by communicating with local people. When communicating and linking with them through travel crossing country borders, we are able to share a social issue as the common issue of the world. Imaging the image of the ideal future world, we can acquire the “power” to think about future it selves and to behave. Travel has that kind of “power”. We believe in such a “power of travel”.

Inviting children who study at painting schools across the nation to BACC (Bangkok Culture Center), we have conducted an art session, where roughly 8,000 paintings were exhibited with the theme on the future of Japanese and Thai children and families. In the reception for all the participants, with the participation of Royal family members, we held an exchange meeting for children and their parents with the same desire. We also visited the elementary school in the suburbs of

Bangkok that suffered from a flood in 2011, and exchanged with local children. At the same time, we held a workshop related to art. We have prepared optional tours available only in Thailand such as the experience of elephant ride, Ayutthaya tour and the viewing of traditional dance on a water restaurant . For chi ldren , overseas travel and the experience of global communication is a good asset, which could become an impetus for them to nurture dreams toward the future.

Study toursinternationalcooperation,inspection ）（

in Thailand Study tour

Internationalcommunication）（

Specialfeature

“Waku-waku”are provided by thewhich leads to the creation of a sustainable society in the future.


Feature Story“Waku-waku”:the thrill, the entertainment and amazement are provided bythe “Power of Travel”, which leads to the creation of a sustainable society in the future.

Three years have quickly passed since I started to deal with study tours. During the period, I have encountered with various tour plans and customers, and what pleased me most was the connection with customers whose life have changed thereafter because of their participation in the “tour” offered by us working as a formative experience. For example, among those who participated in an inspection tour of JICA’s activity, as far as I know, three customers have become a member of Japan Overseas Cooperation Volunteer of JICA thereafter, and have been shouldering its supporting activities. A lot of participants in these tours have sent us comments as follows. “I have become to t h i n k a b o u t w h a t a fflu e n ce a n d t h e happiness of life really are. “As I live a very convenient l i fe in which every thing is available, but is this real happiness? It

seemed to me that the life of people in developing countries that was considered to be poor was happier.” In my opinion, their thinking patterns have changed because of their acquiring objective viewpoints by travelling abroad. This kind of experience gives people the power to think about Japan while feeling the world closer, which helps enhance their worldview and change their way of life thereafter. Travel has the power to make people think about their life, cultivate humans and change people. When I saw them grow and enlightened after the travel, and when I thought I had given them a positive influence no matter how small it is, I think it worthwhile to engage in this business. There are still a lot of fields for learning in this world. I myself am thinking about learning and expanding the scope of study tours.

I have a strong desire to offer travel which could change the life of our customers.

KenichiKobayashi

Sri Lanka is an island country on the Indian Ocean with abundant nature mixed with history. Recently, these abundant tropical forests in this island have been rapidly decreasing due to deforestation and forest fires, which in turn have triggered climate change and drought, and caused a severe negative impact on the life of the residents who lived close with nature. In this tour, participants visit the spot of activities of NGO OISCA that is in active operation in Sri Lanka on the front of environmental protection and environmental education, and also visit the spot of deforestation to do planting activities together with local children and villagers, thus contributing to reforestation of Sri Lanka. Also visit schools in a farming district where few tourists visit. Experience the culture of Sri Lankan farming villages, and deepen warm exchanges with local children and villagers though forestation, meals and the introduction of each culture.

Eco-tourExperience in

volunteer work, Environmental education

Experience in Experience in Experience in Experience in Experience in Experience in Experience in Experience in Experience in Experience in Experience in Experience in Experience in Experience in Experience in Experience in Experience in Experience in Experience in Experience in volunteer work, volunteer work, volunteer work, volunteer work, volunteer work, volunteer work, volunteer work, volunteer work, volunteer work, volunteer work, volunteer work, volunteer work, volunteer work, volunteer work, volunteer work, volunteer work, volunteer work, volunteer work, volunteer work, volunteer work,

Environmental educationEnvironmental educationEnvironmental educationEnvironmental educationEnvironmental educationEnvironmental educationEnvironmental educationEnvironmental educationEnvironmental educationEnvironmental educationEnvironmental educationEnvironmental educationEnvironmental educationEnvironmental educationEnvironmental educationEnvironmental educationEnvironmental educationEnvironmental educationEnvironmental educationEnvironmental educationEnvironmental educationEnvironmental educationEnvironmental educationEnvironmental educationEnvironmental education（）Collaboration plans between H.I.S. and NGO OISCA

●Participating in afforestation activities

●Arrived in Sigiriya and took a commemorative photo to begin with●Communicating with people in a local school

Eco-Study Tour Desk

Protecting forests with children6 days in Sri Lanka to do volunteer work for planting and communicate with local children


In the “H.I.S. Corporate Philosophy” and the “H.I.S. Charter of Corporate Principles” the social mission of our business is defined clearly. This philosophy should be the basis for all decision-making and corporate behavior and should be accepted, thoroughly reinforced and upheld through every situation. To this end, all staff , including foreign staff , are given a pocket-sized credo card that describing “H.I.S. Corporate Philosophy” , “H.I.S. Charter of Corporate Principles”, “H.I.S. Policy”, “H.I.S. Service Standard” and the “H.I.S. DNA” to carry with them at all times and to support conscientiousness during their daily work activities.Moreover, we have made it a steadfast rule that the credo be recited at all morning assemblies of each departments and branches and that it be reflected upon by all staff on a daily basis.

Creative CSR and Basic CSRH.I.S. has divided CSR implementation into categories of creative CSR and basic CSR. “Basic CRS” incorporates social responsibilities into its work process such as our customers’ safety and security; employee health and motivation; respect for human rights; and compliance activit ies beginning with fair trade. On other hand, “Creative CSR” is social innovation in that we take what we learn from our customers and community and use it to cooperate with various stakeholders in creating a greater social value. In other words, it includes tourism development for regional promotion and regional development, the inheritance of local traditional cultures, promotion of international peace and cultural exchange, conservat ion of the g lobal env i ronment , and the popularization of eco-study tours.

To contribute to the advancement ofworld peace and mutual understandingby increasing the knowledge of people around the world through tourism,

and thereby overcoming the diff erencesof nationality, race,culture and religion.

H.I.S. Corporate Philosophy

H.I.S. Charter of Corporate Principles

1. Provide valuable travel products and services to society.

2. Lead fair, transparent, and free trade 3. Handle and disclose information properly4. Secure a comfortable and safe working environment

5. Coexist with the local community

6. Preserve the global environment.7. Hope for world peace.8. Accomplish the responsibilitiesas executive offi cers

Basic CSR

・World Peace・Mutual Understanding

・Corporate Value Creation・Social Innovation・Compliance・Corporate Governance・Internal Controls

Creative CSR

Corporate Philosophy

H.I.S. CSR Management h

Corporate Philosophy and CSRImplementing CSR Based on its corporate philosophy and charter of corporate principles.


Chart of CSR promotion system

CSR Promotion PolicyH.I.S. has carried out its business operations based on the “H.I.S. Corporate Philosophy” and the “H.I.S. Charter of Corporate Principles” and incorporated social responsibility into its business management. However, although CSR is actively incorporated in our corporate culture where initiative by employees and branches is highly regarded, the conveyance

of such information to the employees and society as a whole is lacking. In the future, we aim to better collaboration and integration activitives companywide, publicize our activities in CSR reports and etc., and improve communication with you, our stakeholders.

committee chairman（President）

CSR Staff（About 100staffs from each departments

and each group companies）

CSR committee（Board of Directors, Officers, General Manager）

CSR Promotion committee（Configured on each department leaders） CSR Department

CSR Promotion Policy and structureIn order to actively promote CRS, we have been maintaining our system.

The CSR executive office has been in place since 2012, which constitutes the starting point of cross-company CSR activities. In 2013,we issued the first CSR report, and at the same time made eff orts to diff use CSR perception to staff . From now on, we intend to expand and upgrade CSR activities through strengthened publ ic re lat ions ins ide and outs ide the company and the estab l i shment o f the promotion system.

From CSR Department

CSR Promotion Structure ReadinessAt H.I.S., we have constructed a highly mobile and transparent corporate management structure based on the “H.I.S. Charter of Corporate Principles” to use as a decision-making system. As committee chairperson, the president established a new CSR Committee in 2012. Under the committee, we formed a CSR Promotion Committee consisting of the heads of human resources, general affairs, CS/ES administrative headquarters, sales and marketing, overseas branches, etc. In fiscal year 2013, we held a monthly CSR Promotion Committee meeting, where we confirmed H.I.S.’s priority issues that had been picked up based upon ISO26000 as a check list, and also confirmed the status of implementation of each department’s short and medium target for such issues, thus starting activities involving the DCA cycle. This year, we will post roughly 100 staff in charge of CSR at our domestic and overseas outlets in order to strengthen the system of CSR promotion.

・Deriving High-priority Issues・Short-term Targets, Mid-term Targets

・To check the state of progress at CSR Promotion Committee meeting ・CSR Report Publication・Third-party Opinion

P

A D

C

・Report and Give Restructure Directions to CSR Committee

・Promoting Measures・Employee Training・Penetration of theperception

H.I.S. CSR Management h


The Report Based on Seven Core Subjects of ISO26000 h

Corporate Management

Corporate GovernanceAt H.I.S., under the shareholder’s meeting we have set up a director’s meeting made up of 10 directors, including one outside director. In addition, we have implemented an audi tor’s meet ing made up of three audi tors to monitor the director’s meeting and ensure that the directors’ activities are legally sound. We ensure that two of the auditors are external auditors and that the full-time auditor and at least one of the external auditors are certified public accountants. We register one outside director and two external auditors as independent offi cers who are appointed by the Tokyo Stock Exchange. Furthermore, we have installed “Counseling Hotline,” an external consultation service used to safeguard corporate transparency.

Promotion of internal control related to fi nancial reportsBased on the Financial Instruments and Exchange Act（J-SOX law） which requires the maintenance of the evaluation system for financial accounting and the submission of a “report on internal control”, we have been maintaining the credibility of financial reports（securities reports, etc.）. Also, we have visualized the important work process related to financial reports, and at the same time, we have been operating the schveme to make a proper confi rmation and evaluation so that no false reporting will occur. As maintaining and operation the scheme, we have made revisions whenever necessary with H.I.S.’s business expanding. Further, we intend to apply this scheme to our group companies one after another in order to further enhance our credibility.

The travel industry developed by H.I.S. is a business that contributes to the promotion of world peace and mutual understanding. In order to uphold our social responsibilities and become a corporation in which our stakeholders can have faith, we are incorporating CSR promoting activities in our corporate governance structure.

01

Shareholder’s Meeting

Counseling Hotline（External Consultation Service）

Director’s Meeting

President

Operation Department

Appointment andDismissal

Appointment andDismissal

Appointment and Dismissal/Supervision

Collaboration

Auditor

Accounting Audit

Direction/ReportDirection/Report

Internal AuditingAuditing Office （Internal Auditing Offi ce）

Accounting Auditor

Auditor’s Meeting

Corporate Governance Structure


In an effort to establish shared standards and improve customer service, on November 1, 2011, we instituted “H.I.S. Service Standards” and have been working to impress it upon all our staff. We took the former “H.I.S. Charter of Corporate Principles”, derived and organized more concise customer-oriented corporate behavior, then translated into 25 languages and applied it to all business activities in each of the 162 offi ces around the world.Training was carried out domestically by the personnel department and by the CS/ES administrative headquarters in our overseas offices. In addition, we have been diligent in fi rmly establishing “H.I.S. Service Standards”.In fiscal year 2013, we have prepared a service manual that uses moving pictures（approximately 30 minutes）, which has been distributed to all overseas outlets in order to improve the service quality of overseas staff who are in charge of the guide business. Regarding the way to accept customers, movements of guidance, contents of conversation and the timing of responses, this manual is easy to learn and understand for foreign guides, because the character ist ics of moving pictures are ef fect ively utilized. Utilizing this manual, we intend to enhance the degree of satisfaction on the part of customers.

H.I.S. Service StandardsEight Keywords


Consumer IssuesWe heighten standards of safety, security, and service for higher customer satisfaction.

02

Higher customer satisfaction is an important concept for H.I.S.We are working to make that concept a reality by providing world-class services, running safety-first business operations, and employing the system that compiles customer feedback and promptly applies it to improvements.

Applying the H.I.S. service standard also to overseas

Goals and Accomplishments

Fewer Claims Filed at“Customer Service Department”Complaints filed at our “Customer Service Office” have decreased over the years. In FY2013, we had 1,389 claims, 184 complaints less than the previous year. Compared to FY2009, there was a decrease of roughly 40% in the number of complaints. For FY2014, we will strengthen our training and educational activities and intend to attain our objective of decreasing the number of complaints by 50% and 80% compared with 2009 and 2013, respectively aiming for the total number to be under 1,110 cases.

1000

1500

2000

2500

2009

2,219

1,900

1,638 1,5731,389

Number of Claims

（FiscalYear）2010 2011 20132012

●Shift in Number of complaints Filed at Customer Service Offi ce

FY2014 Target 20% Decrease over Pervious Year’s complaints.

●Smile and Liveliness●Cleanliness●Politeness●Speed

●Customer Oientation●Honesty●Quality●Professionalism

Image of service manual

BadGood


For Safer and More Convenient TravelH.I.S. has worked to raise safety standards by creating a manual of every safety measure.To prevent accidents and other problems at travel destinations, we have created our own handbook and distributed to customers. In it, we have described actual problems and accidents that have occurred abroad and used those to warn our customers about possible troubles that might occur.And also, “Check list in the event of the occurrence of infectious diseases such as dysentery” has been prepared, because quick discovery of the cause of a disease wi l l become necessary when such disease occurs. By utilizing this list, any person can proceed with necessary points when confirming the sanitary condition of restaurants that were used on tours. Further, since fiscal 2013, we have held a periodical “service

Examples of Improvements Based on Customer Comments

d i s c u s s i o n mee t i n g ” b y domestic branch managers. In this meeting, we examine deeply actual cases that were presented by customers, and d iscuss concrete ly how to prevent the cases in order to further enhance the degree of customer satisfaction on sales scenes in a shop. Although this is being conducted mainly in eastern Japan, we intend to expand it quickly to the whole nation. Travel Warning Handbook

●Customer CommentSense of vibration and ambient noises from the morning were annoying, because the building next to the hotel I stayed at was under construction. Also, all the sudden, a big sound like a machine went off in the next room, and I did not feel like staying at a standard-class hotel.▲

ResponseAs for the construction noise, the customer is the only one who pointed it out, however we consulted with the hotel regarding the matter. As a result, the hotel has made an arrangement that they would not place H.I.S. customers in rooms affected by construction（room no. 8 and 10 on the 3rd floor through 11th fl oor, 18 rooms in total）.

●Customer CommentThe local staff who took us to the hotel spoke very poor Japanese, which I hardly understood. Although I participated in a marathon tour, local staff s did not have any information on this tour（however, I did not have any problem, because a Japanese staff explained about the marathon tour when I arrived at the hotel）. ▲

ResponseStaffs at the local branch lost no time in riding on the bus with us, and checked the content of guidance by a tour guide. The guide has memorized the given text by rote, and read it in a monotone, which I thought was hard to follow. Therefore, I advised him to speak more loudly, and at the same time, gave him guidance on his incorrect pronunciation and wrong use of some Japanese expressions.

●Customer CommentI had a hard time to plan my itinerary, because H.I.S. staff said that the time table of the ferry between Hong Kong and Macao was available only at the destination. Local staff has responded to our request in a very kind and helpful manner.

▲

ResponseWe have made it a rule to provide final timetable of the ferry locally, however we have introduced a new pamphlet that carries its rough time zones, after the voice of customers was heard.

●Customer CommentWe need more time for transit on our way home. I regret that I could not complete the procedure for tax exemption, since the transit time was only about one hour.

▲

ResponseIn EU member countries, as a rule, the procedure for tax exemption is required to be completed at the custom of the EU country finally visited, however it was actually possible to complete the procedure at the airport of the first departing country, in case transit time between the EU countries is short, and at the same time, purchased goods are in checked luggage. This above-mentioned exception was not known to all people, therefore we decided to put the procedures on a document that is handed out locally.

“Customer Service Offi ce” ImplementationIn order to expand customer sat is fact ion and provide better quality H.I.S. has set up a “Customer Service Office” at our CS/CE administrative headquarters. The Customer Service Office handles over 4,000 customer comment cards and e-mails from customers in a month, reading each one and using them to improve our services domestically and internationally.In fiscal 2013, we have strengthened management that utilizes intra-company system, and shared actual examples of complaints and consultations with our consultation office in the nation. From now on, we intend to reduce the number of complaints and enhance customer satisfaction by

coordinating closely with our shops through the means such as web meetings.

＊CS is an abbreviation of “Customer Satisfaction” and represents how satisfied customers are about our products and services.

＊ES is an abbreviation of “Employee Satisfaction” and represents how satisfied employees are abouttheir work environments, treatment, and relationships.

Customer Survey Responses


At the CS/ES Administrative Headquarters we have set up a “Quality Control and Market Research” alongside the “Customer Service Department”. While the “Customer Service Department” responds directly to customer feedback, the “Quality Control and Market Research”maintains quality control and focuses on safety issues to ensure the safety of our customers during their travels.

We want to create travel in cooperation with customers.

Examples of Service Restructuring in OverseasCOLUMN

interview

CS/ES Administrative Headquarters

Quality Control and Market Research

Izumi Seino

New trolley bus that carries GPS（Guam）

Safety seminar held in HawaiiPresenting messages

from the driver in operation

Trolley with straps and seat belts（Guam）

Trolley with a safety bar（Honolulu）

Barrier-free trolley with a lift（Guam）

【Initiatives in Guam and Honolulu（Hawaii）】As for the “Excellent Travel Research Office”, all sirena trolleys used in Guam have been changed to new ones, which now carry GPS functions. Trolleys we operate in Honolulu have been equipped with safety lever inside the cars as a measure in the event of sudden application of the brake, which helped strengthen our consideration for safety. Just like in Guam, all trolleys in Hawaii carry GPS functions. In Honolulu, we held safety seminars inviting people who are involved in tourism in order to enhance safety of various marine sports which we off er as an optional tour. We invite as a speaker highly-trusted local coast guard＊, and thus strengthening the measures to avoid marine accidents pre-emptively.

＊The coast guard or its members

In H. I .S . , we have been making ef forts to improve all areas of planning, sales and execut ion so that customers can enjoy travel safely at ease. We examine questionnaires received from customers and reports f rom tour conductors in detail, which are immediately transmitted to serv ice of fer ing inst i tut ions , thus attempting to improve our services. For

the purpose, we sometimes call customers for detail. “Excellent travel” cannot be created only by travel agencies but also together with customers. We will continue listening to the voice of many customers, so that we could offer better travel than customers expect.



Community Participation and Community Development

We strive toward a harmonious community and a better collective future.

03

The travel business introduces participants to foreign lands and the opportunity to experience unknown natural environments, histories, and cultures, thereby is a business that creates new values and mutual understanding and promotes community development.

Travel Business and CommunityH.I.S.’s desire “To contribute to the advancement of world peace and mutual understanding by increasing the knowledge of people around the world through tourism, and thereby overcoming the dif ferences of nationality, race, culture and religion（H.I.S. Corporate Philosophy）” is manifest in its business development. More specifically, we provide a new, personalized style of travel and continuously develop unique travel products. In following this tradition, Now we have created a new type of travel called study tour. Through this tour, we offer customers oppo r t un i t i e s whe r e t he y communicate with people both at home and overseas, consider regional and social issues based on a g lobal s tandpoint , and think about how to solve those issues together. Our overseas outlets are the ones that support such travel locally. H.I.S. has been seeking to expand them aggressively,

and currently the number stands at 163 in 54 countries in the world. The target for the number of outlets in fiscal 2014 has been set at 200 with a new outlet being open in uncultivated countries such as Nepal, Peru, Morocco and South Africa. H.I.S. has continued to play a social role through travel by the expansion of overseas outlets and strengthened contribution to local communities. It is in this way that H.I.S. continues to carry out its role in society through tours.

Examples of Service Restructuring in Overseas

Hong Kong Branch Bangkok, Suvarnabhumiinternational Airport Branch

Achievements and Goals

We will increase the number of overseas outlets, and contribute to local communities.H. I .S . has been contr ibut ing to the development of overseas economy and culture in areas such as local employment, and the development and cultivation of tourism resources. Currently, the number of our overseas outlets stands at 163 in 114 cities of 54 countries（as of December 2013）. This fiscal year, in addition to further increasing the number of outlets to accept more Japanese customers, we also have been making efforts to increase the number of dealings in travel intended for local people. While contributing to the development of local communities, we will also contribute to the mutual understanding of the world people and to the vitalization of local communities.

30

60

90

120

150

180

2002（FiscalYear）

(Number of Overseas Of�ces)

163

2007 2012 2013

49

79

141

●Change in the number of overseas offi ces.

FY2014 Target Increase overseas offi ces to 200 offi ces.


Job Creation and Local RevitalizationH.I.S. has realized local areas’ economic revitalization and job creation through its overseas outlets. In Thailand, H.I.S. has steadily penetrating in the local society, and is ranked 6th place in the popularity ranking of Japan-affiliated companies. From now on, we intend to seek further “localization”, and nurture our outlets to take deeper root in local areas, thus expanding our local travel business. For us to attain the objective, it is urgent to train staff including local managers. They are quite familiar with their homeland, therefore they can create locally-oriented attractive travel products, and diffuse them further into the local economy. Through training programs both in Japan and overseas, we have provided opportunities to staff where they can learn the creation of travel products unique to H.I.S., quality control and safety management. At the same time, for us to strengthen overseas outlets, we should not depend too much on acceptance of travelers from Japan. A new charter flight that flies directly from Russia to

Guam is being planned. Russian tourists tend to travel longer than Japanese, and in addition, the timing of their vacation does not duplicate with that of Japanese, therefore it will help vitalize travel business in a receiving country.H.I.S. will make efforts to strengthen travel products that feature direct visit from countries other than Japan, and to contribute to the promotion of tourism.

interview

Global Business Development DivisionSales Strategy GroupHIROYUKI

FURUKAWA

Growing with overseas outletsAt the t ime when H . I . S . was founded, overseas travel was luxury only for selected people in Japan, however we have changed it to the one that can be enjoyed by more people in the form of free individual travel, and is close at hand, which we are proud of . Now, I am thinking of execut ing the same thing in our overseas outlets. We

will nurture and make them stronger, and increase the number of people travelling overseas from there. Of course, we also intend to increase travelers visiting Japan. I think this is really a worthwhile job that leads to the vitalization of world tourism industry, and further to that of the world economy.

s t uden t s i n Iwak iin order to v i ta l i ze I w a k i b y i n v i t i n g tourists. Sympathizing with thei r pass ion, H.I.S. has designed a bus tour（two days and one night） that features experience

of attractive Iwaki such as “making of a tube-shaped fi sh paste cake”, a local industry. We were able to transmit attractive Iwaki to a lot of people who participated from across the nation. We will continue to develop activities that vitalize the disaster-stricken areas through tourism from now on.Besides the already mentioned-activities, H.I.S. has been developing recovery-support activities of wide range, such as a bus tour titled, “Let’s communicate with local people by helping them harvest “wakame seaweed” in season, and eat seafood in the Fukkoushi !!” as a joint project tour with “NPO corporation Butterfly Eff ect”.

After the Great East Japan Earthquake, H.I.S. has been continuously developing recovery support activities. Among them is the activity of the “Cheer up Tohoku, Support Fukushima Tour” planned and guided by high school students in disaster-str icken areas, whose first tour was done in the spring and summer of 2013, followed by the second tour in autumn and winter, five times in total. The original proposer of this tour is Miss Haruna Shiraishi, a second grader of a high school in Iwaki c i ty . She participated in the “Tomodachi Summer 2012 Soft Bank Leadership Program” in the summer of 2012, in which she learned leadership and local contribution in the United States. After r e tu rn i ng home , s h e h a s s e t u p “ TOMOTORA ”）Tomodachi TravelAgency） with ten other high school

Great East Japan Earthquake Reconstruction AssistancePICKUP

Executive committee members of “TOMODACHI”

”TOMODACHI” memberswho navigate the tour

Local staff in Kenya


H.I.S. has actively supported sports teams and events based upon our view that both sports and overseas travel give dreams to people. We have supported the “JFA Heart Project, Dream Room（Yumesen）” that has been hosted by Japan Football Association（JFA） since 2013, thus providing opportunities to think and talk about dreams among families, as well as making them enjoy family travel.Yumesen is an event in which active and retired players of soccer or other sports actually stand on the platform as a “dream teacher” to talk about topics such as “wonderful to have a dream” and “importance to make efforts toward the goal”. After the events, participants（including their parents and guardians） write their own dreams on the paper, which teachers see and return after putting comments on it in their own hand. Encouraging comments from teachers who have realized their dreams by a continuous eff ort will support dreams of each participant strongly.

COLUMN

Saipan

GuamPalauCebu

Taipei

Hainan Island

MacaoHong Kong

Tsingtao

Sao PauloSao Paulo

LimaLima

Xiamen

Japan

Ulan Bator

Manila

VientianeLuang Prabang

DalianBeijingGuangzhou

ShanghaiShanghaiShanghai

Vladivostok

Seoul

Jeju IslandJeju IslandJeju Island

Cehngdu

DhacaKathmandu

DelhiDelhi

Maldive

NairobiNairobi

JohannesburgJohannesburg

BangkokBangkokBangkok

Siem ReapPhnom Penh

PhuketChennaiChennai

Colombo

Chiang MaiChiang Mai

Jakarta

BaliBali

CikarangCikarangCikarangCikarangCikarangCikarang

Bandung

SurabayaSurabayaSurabayaSurabayaSurabayaSurabayaSurabayaSurabaya

Perth

Singapore

Langkawi Kota KinabaluKota KinabaluKota Kinabalu

Ho Chi Minh

CairnsCairnsNoumea

SydneySydney

FijiPapeete

CancunCancunCancun

Orlando

Toronto

Miami

Las VegasNew YorkNew York

BostonBostonChicagoSeattle

WhistlerVancouverVancouver

San FranciscoSan FranciscoLos AngelesLos AngelesCosta Mesa

South Bay

San DiegoSan Diego

Mexico CityMexico City

MauiKona

Honolulu

MelbourneMelbourneAuckland

BrisbaneGold Coast

Srirach

Penang

Kuala Lumpur

PattayaPattayaPattayaPattayaCikarangPattaya

CikarangCikarangPattaya

Cikarang

BarcelonaBarcelona

Zurich

MadridMadridLisbon

MilanoDubaiDubai

ParisParisGeneveGeneve

AmsterdamAmsterdamBrusselsBrussels

FrankfurtFrankfurtCopenhagenCopenhagen

Dusseldorf

Moscow

IstanbulIstanbulCappadocia

FlorenceFlorence

BerlinBerlin WarsawPrague

LondonLondonLondonLondonDublinDublin

RomeRomeVenice,ViennaVenice,ViennaVenice,Vienna

MunichVienna

BratislavaBratislavaBudapestBudapest

IstanbulBudapest

Istanbul

Oslo

CairoCairo

YangonYangon

287retail storesinJapan

54 countries114 cities163 overseasbranches

CSR on the World Stage

At H.I.S., retail stores in Japan and overseas branch offi ces ardently collaborate in community revitalization, job creation, supporting traditional cultures, and the pursuit of social betterment around the world.

CSR Implementation around the World

“Dream School” that raises children’s dream

To support the preservation of Balinese dance, music, and other traditional culture, we are developing various projects that focus on supporting older generation artists. There are “Producing DVD that teaches the philosophical ideas of shadowgraph artist Sija.”,“Supporting the preservation of the Legong traditional dance of Peliatan village.” and “Joge Pingitan illusional classic dance succession planning.” in typical that.

H.I.S. Balinese Traditional Culture Preservation Project

“H.I.S. support for sports teams in 2013（part of support）”●A camp of Tokyo Yakult Swallows was held　7/31-8/1・Stayed at the Jingu Stadium, held baseball classes・ Stadium tour（visited the backside of the stadium, rocker rooms and the practice fi eld） ●A match day of Yokohama Marinos was held　7/13・Escort kids（children enter the fi eld holding hands with players）・Stadium tour（visited the back of the stadium, rocker room and the practice fi eld）●Other support ・Tokyo Yakult Swallows match day（match with H.I.S. name attached） once ・Chiba Lotte Marines match day（match with H.I.S. name attached） once First event　Shoji Jo

Second event　Takashi Mizunuma


ISO26000 Report Based on Seven Core Subjects h

Human RightsToward Corporate Management that Renounces Discrimination and Respects Human Rights

04

H.I.S. strives to, in all of its corporate undertakings, protect human rights and renounce discrimination based on race or citizenship, sex, age, beliefs or religion, and the presence or absence of disabilities, and sustain a fair and positive workplace environment. H.I.S. has been striving to create a human- rights- fi rst work environment, although human rights involves a lot of issues.

Creating a Workplace Environment that Protects Human RightsWe always endeavor to uphold manners and humi l i ty and ma in ta in good commun ica t ions tha t va lue the individual. In addition, as part of H.I.S. Charter of Corporate Pr inc ip les , we declare that “we respect each other’spe r sona l i t y andun i quenes s . A l so , we d r aw a l i n e be tween pub l i c and p r i v a t e ma t t e r s , ma i n t a i n i ng fa i rness in our work env i ronment and prohib i t ing any unpleasant conduct. Working environments should be c lean and safe , p leasant and v igorous for everyone. ”We have opened an out-of-the company window for reporting, “Counseling Hotline” in July 2003, thus making efforts to find and solve compliance violating activities including the violations of human rights. We have also opened “Gotemba Support Center” as an office that integrates tasks that are handled by handicapped employees in an effort to actively hiring handicapped people. In Apri l 2013, we set up “ Kumagaya Giveaway Center”that handles travel itinerary making, where handicapped employees are engaged in tasks such as data entry and enclosing. From now on, we will continue to promote actively the expansion of opportunities for hir ing handicapped persons through measures such as diversifying contents of business and increasing the volume of tasks to be handled by them.

4500

4600

4700

4800

0.5

1.0

1.5

2.0

October 2010

4,675

1.561.51

1.66

4,4754,491

4,788

October 2011 October 2012

Total employees (people) Employment rate of people with disabilities（%）

1.56

October 2013

Affi xing labels and packaging work in a warehouse at the Gotemba Support Center

Travel itinerary making at the Kumagaya Giveaway Center


Ratio of Human Rights Related Consultations at “Counseling Hotline”As part of the internal control system to ensure proper work practices, H.I.S. has set up an external fraud hotline, “Counseling Hotline," a corporate transparency and early-warning compliance violation system. Every year we receive about 20 reports on the average. In 2013, we received 19 reports just like the previous year. Of the content of the reports, the ratio of human rights- related ones including “power harassment” has declined to 36.4% in 2013. We will continue to further strengthen the measures in order to further reduce the number of reports. In an effort to further reduce the number in 2014, we will continue to strengthen measures to fi ght against the problem.

●Ratio of Human Rights Related Consultations at “Counseling Hotline”（%）

10

20

30

40

50

2010

47.6%

33.3%

42.1% 36.4%

（%）

2011 2012 2013（FiscalYear）

FY2014 Target Reduced ratio of human rights-related consultation numbers

●Employment rate of people with disabilities


and also point out business-related problems including compliance. Responses to such proposals and questions are sent from the department concerned while necessary business improvement is made at the same time.

interview

“Dream Project” and “Business Improvement Proposal”OperationsH.I.S. introduced the “Dream project” in the summer of 2013 in order to provide a comfortable working environment to staff s.In this project, experienced support staffs with ready power are sent to shops in response to their request to support their sales activities during the busy period. Tightness of business on the spot is relieved thanks to this arrangement, which makes it possible to reduce overtime hours, promote leave taking and realize more precise and efficient customer receiving business. This project is currently in operation only in the Kanto region, however we are planning to develop it across the nation at the earliest possible time.Also, we have added special pages on our intra-company portal site so that we see clearly how staffs are working at domestic and global outlets. Photos of staffs are posted on the site with comments. Who are working where and thinking what? Such images that normally cannot be obtained are shared among employees through the site, thus making them feel closer to each other. A communication tool in the daily sales reporting system, the so-called “three- line reports” has continued to be operated on the whole company basis, in which any staff can make a proposal for job improvement and new ideas at any time,

Since I was posted here, my mission is to create an environment where everybody can work lively for a long time. I will listen to voices of staffs ten times more than before, and proceed with quick improvement . H.I.S. is a place where especially women are taking an active part. Travel business is a service business, which needs women’s delicate feeling and consideration when

dealing with customers. Although there are some cases such as marriage, chi ld birth, and child raising that are diff icult for women to reconcile with their work, we intend to create a workplace where employees can cont inue to work for a long time through the understanding of surrounding people and strengthened system.

CS/ESAdministrativeHeadquarters

Workplace Enhancement Department

Chiaki Otani

Create an environment where everybody can work lively for a long time

Special pages of our portal site that make staff activities “visible”

The “Workplace Enhancement Department” was organized under the CS/ES Administrative Headquarters to improve the satisfaction of all H.I.S. staff . 〈Major Operations〉●Sales support during the busy period through the “Dream Project”

●“Visualization of staff activities” through our intra-company portal site

●Operation/management of “Business Improvement Proposal” and distribution/sharing of restructuring items.

●Implementation of the employee satisfaction survey and review of relevant restructuring strategies.

●Revision and operation of paid leave and employee discount system.

● Warn offi ces and staff with excessive overtime.●Implementation and operation of award systems（for example, President’s Award）.

●Planning and execution of incentive trips.● Patrolling of agencies to collect staff opinions and confi rm situations.

In fiscal 2014, we plan to further speed up the cycle of grasping and improving working environment. Besides, we are in the process of building a system in which staff’s voice reaches the “Excellent Workplace Promotion Office” easily through a measure such as increased staff meetings.

Workplace Enhancement DepartmentPICKUP



Labor PracticesWe aim to create the working environment where there is “Job Satisfaction” and everyone can demonstrate their abilities.

05

At H.I.S., we ardently pursue the creation of a workplace environment where the entire staff can fully express their individuality and competence and we take great effort in nurturing a workforce that can take on the world.

Working EnvironmentCreating a comfortable and fulfilling working environment and providing each individual with a fair opportunity to grow is a major corporate responsibility.We acknowledge that regarding paid leave , we have promoted an incentive toward higher consumption in serious consideration of its low consumption ratio at around 40% and therefore we have taken actions to improve the usage. One step we have taken is to link the award system to an overseas travel incentive program as a new opportunity to collect paid leave. We instituted a continuous leave system where up to 14 days can be used during the off-season and a roughly 10-day long vacation can be used during the summer. Furthermore, since FY2012, we have installed a half-day paid leave system where every month, 200 to 250 people use the system.In a half-day paid-leave system that has started in 2012, about 200 employees used the system every month at the start of the system, however as from May 2013, the number has increased to about 350. Pertaining to the use of overtime, individuals must submit a “Current Month Total/Previous Month Total” of overtime to

the supervisor of each department, along with the number of hours of another department for reference, and request concrete measures to reduce the amount of overtime.

●Used Paid Leave Rate

5.5

6.0

6.5

7.0

2010

Average Number of Paid Leave Days per Employee

＊ In FY2011, special paid leave days were granted due to the Great East Japan Earthquake.

5.87

6.56＊

6.37

6.74

2011 2012 2013（Fiscal year）


About “Job Satisfaction” in the Employee Satisfaction SurveyAt H.I.S., in order to confirm the trend of employee satisfaction（ES） and put restructuring to good use, we have conducted a 50 item employee satisfaction survey on a regular basis. According to a survey conducted in 2013, 60% of the total responses were those of “Job Satisfaction”, which represents an increase of 1.34%. We continue to aim at increasing the fi gure for the above-mentioned “Job Satisfaction” to the mid-term target of 80% from 2014 onward.

●Employee Satisfaction Survey

FY2014 Target Work-Life Balance Sustainability （Mid-term Goal: 80% “Job Satisfaction”）

45

50

55

60

65

2010

63.67

60.01

50.62

52.00

58.67

51.04

I am satis�ed with my job.

Average Score＊

＊Average Score of Complete Employee Satisfaction Survey20132012 （Fiscal year）

Response Rate（%）


At H.I.S., it is our policy to provide all staff opportunities for personal-development and growth. H.I.S. has introduced a scholarship system that supports the acquisition of a qualification for “Destination specialist” who is specialized in a wide-range of cross-sectional study programs and in specifi c countries and regions appointed by the industry. Also, we have been trying to improve our training programs in order to expand width and possibility of our employees. Oneexample is “Sub-conductor training”, in which participants accompany tour conductors on travel to learn tour conductorship,and at the same time understand the needs from customers by becoming familiar with H.I.S.’s tour products. In November 2013, eight employees part icipated in such programs. The second one is “Overseas business training”, in which participants experience local business at an overseas branch for two weeks. Both programs help them to accumulate sales knowledge and improve their service, and at the same time contribute to their future career paths.At the same time, we have been making eff orts to train global staff toward our future growth. For us to support their self-

At H.I.S., where we have numerous female staff, we have implemented a support system for working mothers.In the "mom dad Choice", if you take parental leave, it is possible to extend for one year in addition to the one-year normal.（for full-time employees who have worked three years or longer）. We also grant a short-workday policy until April 30 of the year that a child enters elementary school, which is much longer than the average policy term.Furthermore, for those who continue working full-time after the birth of their child, we provide financial support such as extended daycare and babysitting fees. And for staff who are raising three or four children under 18 years of age, we have a “Happy 66” system which allocates ¥5,000 for the 3rd child and ¥50,000 for the 4th child（¥660,000 max/year）. As such, H.I.S. intends to strengthen its child raise supporting system based on the “Act on Advancement of Measures to Support Raising Next Generation Children, and obtain a next generation certification mark, “Kurumin mark” as a “child raise supporting company”. Currently, many of the women working at H.I.S. are continuing work after they give birth and while they are raising their children. These policies influence our ratio of women in management posit ions, which is much higher than the average and currently stands at 16.77%（as by our standards for management positions）.

interview I think you must have realized the wave of

globalization occurring in a daily business, since you hear someone speaking English around you on a daily basis, and sometimes need English-translated documents, etc. In the personnel department, we are considering to introduce programs that serve the cultivation of staffs that can succeed in global business scenes,

which include measures such as overseas training programs, English study and invitation of overseas staff to Japan to create opportunities for communication. Taking advantage of these programs, please fl y toward the world. I think the growth of each staff leads to the improvement of service quality for customers, and that, in turn, helps promote H.I.S.’s growth potential.

Human Resource Development

Childcare Support Providing a Comfortable WorkEnvironment for our Employees Womenmake up 16.77% of management positions.

●Mama Papa Choice□The 1 year childcare period can be extended up to 2 years（Reason not required and for full-time employees who have worked 3 years or longer）.

□Short-workday hours during childcare until April 30 of the year that the child enters elementary school.

□Financial assistance to cover extended daycare hours and babysitting fees for full-time employees.

□For children under the age of 18, allocation of ¥5,000 for the 3rd child and ¥50,000 for the 4th child （¥660,000 max/year）.

●Award SystemThe main awards are the President’s Award and Evaluation Point System. Evaluation Point System is points for performance by the sales and marketing team during peak seasons. It is then used to revitalize and improve workplace performance. Secondary overseas travev l prizes are as an incentive. We can then provide customers with latest information about their destinations with spread knowledge.

●Rated Highly in “Employee Satisfaction Survey”More than half of the total staff at H.I.S. are women and are active in various work activit ies . Even in the most recent “Employee Satisfaction Survey,” a high 73.17% answered that “I am treated fairly without any sex discrimination.” There are 190 female staff in managerial positions, accounting for 16.77% of the 1133 managerial positions in total（as by our standards for management positions）.

Human Resources DivisionHuman ResourcesDevelopment TeamFumi Shinobu

2009 2010 2011 2012 2013

100

150

200

250

300

89

244

142

171

264

（Fiscal Year）

Number of Licensed Destination Specialists (people)

The growth of each staff helps promote H.I.S.'s growth potential

development, we have introduced CASEC for all staff that is capable of measuring their English ability. Support for short-term overseas language training programs is also in place. We accept interns from overseas on a long-term basis, in which eight students have participated from countries such as Germany and France. We will proceed with creating a global working environment through the promotion of communication in multiple languages.

●Number of Licensed Staff


ISO 26000 Report Based on Seven Core Subjects h

Fair Operating PracticesWorldwide Promotion of Fair Business Operations Founded on H.I.S. Charter of Corporate PrinciplesAt H.I.S., we aim to thoroughly ensure compliance with laws and regulations, social norms, and ethics, and establish the “H.I.S. Charter of Corporate Principles.” Moreover, in order to apply its principals globally, we provide the training, inspection, and guidance required by overseas offi ces and suppliers.

06

Common Knowledge and Commitment/Training and Orientation

The Charter of Corporate Principles and H.I.S. Quality Control

Standards

H.I.S. Overseas Offi ces/Tour Arrangement PersonnelLocal Travel Companies/Bus Companies/Hotels, etc.

Establishment of Fair Trade RelationsThe s logan for the second pr inc ip le of the “Charter of Corporate Principles” is to “lead fair, transparent, and free trade” and clearly states the following: “When prov id ing t ravel products and serv ices to our customers, or purchasing and receiving services from others, we lead fair, transparent and free trade by firmly standing against any unhealthy or corrupt business practices.”We believe that all staff thoroughly recognizing these principles of behavior is the foundation for realizing fair business practices. In conjunction with our own quality control standards, through compliance education and training, we aim to ensure that all trades formed between countries and regions are always a healthy relationship.With the revision of Subcontract Act（official name: Act against Delay in Payment of Subcontract Proceeds, Etc. to Subcontractors in 2013, the scope of its regulation has been expanded to services that the travel industry offers.

Whether to apply this Act is difficult to judge in some cases, therefore we have opened a portal site of our legal team on the intra-company network to post explanations related to the travel industry. That is made up of three parts, including explanations about Subcontract Act, questions and answers, and simple check lists to judge whether the Act is violated.

Portal site of the legal team


Implementing Client TrainingPe r ta i n i ng to the p repa ra t ion and execu t ion o f t r a ve l products, there are numerous business operators involved, such as overseas H. I .S . branches, product development related people, local travel companies, and even hotels, restaurants, and bus companies. In order to establish and sustain fair trade relationships, we conduct regular training sessions to disseminate the principles of the “H.I.S. Charter of Corporate Principles” as a global standard.

200

250

300

227

256

（companies）

2012 2013（Fiscal Year）

●Actual results of Partner Training in Japan（Total number of companies）

FY2014 Target Continuation of Training Twice a Year


interview

The Value Chain ApproachWhen it comes to travel business at H.I .S. , not only are numerous staff and business people involved in the creation and sales of travel products, but so are bus companies, hotels, restaurants, drivers, guides, and other businesses at travel destinations. In order to provide customers with high-quality services and value, we use the same training we use in Japan to teach staff and related personnel about laws and regulations, social norms, and ethics. The travel laws and regulations that are used in Japan are the most stringent in the world. We consider those levels to be standard and are working to bring our overseas offi ces up to the same level by embedding the basic principles of H.I.S. Charter of Corporate

I think “travel is already started, when a customer think he wants to travel”. When consulting with customers, I make sure to treat them warmly, and at the same time make eff orts to make them feel even more excited about the travel in the process of the consultation. Thanks to the execution of mystery shopper investigations, an outer

institution’s research has rated H.I.S.’sserv ices as stable . A iming at rea l iz ing satisfactory wait on customers, we will cont inue to conduct mystery shopper invest igat ions. I th ink my miss ion is to further improve the quality of H.I.S.’s wait on customers making the best use of the result of such investigations from now on.

CS/ES Administrative Headquarters

Quality Control and Market ResearchDepartment

Takayuki Tsubo

Principles, as well. In order to achieve the objective, we have been conducting a research on whether they have had regular training sessions, and employment and management policies focusing on human rights by making use of role-playings and the collection of cases that are arranged by actual business scenes. Further, we regularly regarding hotel accommodations and bus operations, which are the bedrock of travel safety and security, we have developed a system of inspecting onsite and based on checklists both in Japan and abroad. Our accommodations and bus partners are chosen strictly and fairly as a result.

The “Quality Control and Market Research Department,” in conjunction with the “Customer Service Department” and “Workplace Enhancement Department”, and under the CE/ES Administrative Headquarters, works to provide higher quality products.More speci f ica l ly , f i rs t we l i s ten carefu l ly to our customers, read all of their comment cards and online questionnaire responses in order to f ind concrete solutions to all the faults in our travel products, as seen through the eyes of our customers. We also conduct more than 1,000 mystery shopper investigations every yea r a t the counte r o f ou r domest i c shops , thus checking how each item of the service standard has been fulfi lled. Results from these investigations are fed back to each shop, by which we have been trying to improve the quality of our services.Regarding matters related to the security of travel and services, we have been in the process of digging up problems. When the problems are related to the design and creation of products themselves, departments concerned are asked to inspect and solve the matter jointly. These concrete efforts to raise product quality cannot be achieved by H.I.S. alone. We use the value chain and cooperative efforts. As a means to that end, we implement our own quality control standards, develop a detailed manual and hold training and orientation seminars to thoroughly familiarize bus companies, hotels,

local travel agencies, and guides with those standards. The manual consists of approximately 40 pages that are updated or revised every six months. Training is held once a year for overseas branch managers and twice a year for roughly 70 client companies and other local agencies. Further, the “Quality Control and Market Research Department” staff go directly to the destination to conduct onsite inspections of commissioned bus companies , hotels , opt ional tour transportat ion modes such as trains and buses, lodging facilities and even gift shops, to confirm that tours are running in proper order. We have been making efforts to improve customer satisfaction together with local mangers.

Travell iterally starts when you think you “want to travel”.

Client Training

Quality Control and Market Research DepartmentPICKUP


ISO26000 Report Based on Seven Core Subjects

EnvironmentWe are cultivating awareness and thoughts toward the environment and local problems through travel.

07

Aiming at establishing a sustainable society, H.I.S. has been conducting various “eco-tours” that nurture awareness and thoughts toward the global environment.

hinterview Eco-tour , which we want to of fer as a

community, is a new type of travel that is full of wonder and discoveries, which leads to the creation of new communities. This community is like a “school with free entry and exit”, and helps introduce new visions to the daily life and make life more affluent

and multiple-faceted. Eco-tours can be enjoyed even after returning to Japan. In a get-together following the tour, people, who did not participate in the tour but want to go next time, also participate. My mission is to off er travel as a new community. Eco-Study Tour Desk

Taku Sameshima

To off er travel as a new community

Greenhouse Gas（CO2） ReductionThe travel business is a business that provides opportunities to come into contact with different cultures and bountiful nature. Particularly now, when environmental preservation issues are dire in all countries, we have planned various “eco-tours” as a way of conveying to as many people as possible, the urgency of environmental issues and the need for preservation. The scheme of “carbon offset” in which emitted CO2 during travel is offset started in 2012. Nearly 10% of the total participants of eco-tours have offered to use this scheme. As for this “carbon offsetting”, we have applied to the “Support Program for Business Persons in Disaster-stricken Areas related to the Acquisition of Verified carbon offset Certificate that utilizes J-VER（offset credit）” of Ministry of the Environment, and it has been approved for the

first time as a travel agency. This is a scheme, in which CO2 emitted during H.I.S.- hosted bus tours that support the recovery of Tohoku is offset by credits generated in visiting disaster-stricken areas. In addition to direct support through travel, we were able to attract more consumers to such disaster-stricken areas by introducing the scheme on our home pages and blogs, and at the same time carbon offset has been diff used and promoted.

Carbon off set verifi cation label that uses disaster-strickenarea-generated J-VER, etc.

Achievement and Goals

Carbon Off setOur appeal to a cooperation for “carbon offset”, which started in October 2012, has resulted in an actual offset figure of 60.674t-CO2 in a year from November 2012 to October 2013, and the ratio of its users against all participants of eco-tours has reached 9.6%. Next year, in addition to credits used for India’s biomass development, we intend to increase carbon of fset t ing which ut i l i zes cred i ts that contribute to environmental security and renewable energy development in visiting places on Tohoku recovery support and local promotion tours.

●Results of carbon off setting

＊ Ministry of the Environment “Carbon off setting credit（J-VER） system” http://www.env.go.jp/earth/ondanka/mechanism/carbon_off %20set/j-ver.html

80

60

100

10

5

15

2013

Actual �gures（ｔ－CO2）The users’ ratio against

total participants in eco-tours（％）

9.6%

60.674

100

15%

2014（目標値）

（Fiscal Year）

FY2014 Target 100 ton - CO2 off set The users’ ratio against total participants in eco-tours 15%


Huis Ten Bosch, which aims to future urban environment

In cooperation with the Research Office of Messrs. Noshiro, Kawazoe and Magori at Tokyo University’s “Production Technology Research Center” and housing makers, we have completed a new smart house on our premises in an effort to create a place for various experiments and inspections. Almost all electric consumption of this “future-type house” is provided by natural energies such as solar and wind powers.

A new project challenged by Huis Ten Bosch that seeks to become a 1,000 year town is a “smart hotel” scheduled to open in April 2015. The hotel is a next-generation hotel that restrains i ts running cost to minimal, and at the same time aims at obtaining the world-best productivity by using automation and robotization.

COLUMNSmart house is completed.

Designing of the “smart hotel” has started.

■A room unit that utilizes local technologies and materialsLocal technologies and materials are actively used for its room interiors. We aim at designing the room that has regional characteristics unique to Huis Ten Bosch by actively utilizing lumber produced mainly in Japan and steel structure technology developed in conjunction with Sasebo’s shipbuilding industry. We, also, will build a system that is used as a basic measure for a room and also applicable to hotels on a global basis.

■Use of renewable energiesWe intend to use various future energies in the hotel including solar power generation and solar heat panels based on experiment results obtained from the smart house. The kind of usable natural energies and its efficiency will change according to construction locations. We aim at a high-efficiency hotel suitable to the location in accordance with its conditions.

■New “Omotenashi” using robotics We will actively introduce services by robots, which makes it possible to substantially reduce personnel cost that accounts for a major part in hotel management. The objective of this trial is not just cost cutting, but also to seek the way how the next-generation robot services should be.

■Air-conditioning in hot and cold water circulating in the buildingThe smart house is a one-story hybrid-structured house which is built of steels combined with wood. The comfortable inner room environment of this house is created not by air-conditioners but by panel heating and a cooling system that utilizes cold and hot water running in metallic panels. This system is also used for structure body of the building.

■“Visualization” of basic functionalitiesPutting importance on residents’ comfort of life, besides the visualization of electric energy produced by solar and wind powers, we have visualized basic functionalities needed for a house.

■Verifi cation of comfort of lifeVarious future energies such as solar and wind powers have been experimented. Among them, magnetic force generation is an epoch-making invention, although still on an experimental stage. Magnetic force generation is a system that turns a generator using the suction power and repulsive force of a strong permanent magnet, which is really a future energy that is totally clean and semi-permanently usable.


hBusiness Overview and Distribution of Value

■Sales by segment（FY2013）

Business Overview

Distribution of Value to Stakeholders About fund-raising activities

By employing our network of 287 domestic branches and 163 braches in 114 cities abroad, we are building a theme park business and hotel business in addition to our travel business. We will continue to strive for customer satisfaction and the supply of competitive products and services.

Selling expenses, administrative expenses, non-operating expenses, etc. are deducted from revenue gained through business operations（net sales ‒ cost of sales） and the results are added with value, which are distributed to stakeholders as follows

H . I . S . h a s b e e n p e r f o rm i n g f u n d - r a i s i n g activities considering them as one of our social responsibilities.

Sales by segment

◆Travel Business 89.9% In addition to overseas travel from Japan and Japanese domestic tours, we al so have been strengthening overseas travel business. With great serv ices and product l ineups , we provide each and every one of our customers with the perfect trip.

◆Theme Park Business 4.1%

We are operating “Huis Ten Bosch,” theme park based on the concept of harmony with nature.We are engaging in various activities to make it Asia’s most beautiful city for sightseeing.

◆Hotel Business 0.8% We are operating hotels in Australia's Gold Coast and Brisbane, Sapporo, Nagasaki, and Guam.

◆Kyushu IndustrialTransportationHoldings Co.,LTD.

5.2%Kyushu Industria l Transpor tat ion Holdings Co.,LTD. has been operating main ly in Kumamoto in business areas such as rout bus, express bus, domestic and overseas travel and hotel, restaurant business.

H.I.S. seeks sustainable development by carefully preserving the environment and the world’scultural heritage by strengthening bonds among customers, local communities, and employees. We believe it follows the expectations of our shareholders and investors and is the surest path to sustainable development.

Business Climate and Distribution of Value to Stakeholders

Stakeholders Amount（Millions of Yen）

Content

Shareholder 1,102 Dividends

Employees 28,105Total Amount of Salaries, Wages, Bonuses, and

Retirement Benefi t Costs

Creditors（Financial Institutions） 146 Interest Expenses

Government Agencies（national, local） 3,586

Total Payment of Corporate, Inhabitant, and Business Taxes

Companies（Retained Earnings） 7,698 Increase in Retained

Earnings

Itemized Amount（Millions of Yen）

Culture, art 52

International communication, cooperation

24

Education, social education 15

Sports 2

Local social activities 2

Others 2

Total 100


0

50000

100000

150000

200000

250000

300000

350000

400000

450000

500000

2009（Millions of Yen）




2010 2011 2012 2013

325,086348,065

380,805

431,483

479,478

0

2000

4000

6000

8000

10000

12000

2010 2011 2012 2013

7,1376,278

9,407

11,84311,316

0

2000

4000

6000

8000

10000

2010 2011 2012 2013

3,371 3,384

8,300

9,3318,903

0

2000

4000

6000

8000

10000

12000

14000

16000

2010 2011 2012 2013

5,5825,019

11,005

13,479

15,203

0

50000

100000

150000

200000

250000

300000

350000

400000

450000

500000





2010 2011 2012 2013

325,086348,065

380,805

431,483

479,478

0

2000

4000

6000

8000

10000

12000

2010 2011 2012 2013

7,1376,278

9,407

11,84311,316

0

2000

4000

6000

8000

10000

2010 2011 2012 2013

3,371 3,384

8,300

9,3318,903

0

2000

4000

6000

8000

10000

12000

14000

16000

2010 2011 2012 2013

5,5825,019

11,005

13,479

15,203

■ Ordinary Profit（Consolidated） ■ Net Profit for the Year（Consolidated）

0

50000

100000

150000

200000

250000

300000

350000

400000

450000

500000





2010 2011 2012 2013

325,086348,065

380,805

431,483

479,478

0

2000

4000

6000

8000

10000

12000

2010 2011 2012 2013

7,1376,278

9,407

11,84311,316

0

2000

4000

6000

8000

10000

2010 2011 2012 2013

3,371 3,384

8,300

9,3318,903

0

2000

4000

6000

8000

10000

12000

14000

16000

2010 2011 2012 2013

5,5825,019

11,005

13,479

15,203

0

50000

100000

150000

200000

250000

300000

350000

400000

450000

500000





2010 2011 2012 2013

325,086348,065

380,805

431,483

479,478

0

2000

4000

6000

8000

10000

12000

2010 2011 2012 2013

7,1376,278

9,407

11,84311,316

0

2000

4000

6000

8000

10000

2010 2011 2012 2013

3,371 3,384

8,300

9,3318,903

0

2000

4000

6000

8000

10000

12000

14000

16000

2010 2011 2012 2013

5,5825,019

11,005

13,479

15,203

Company Information

Performance Information■ Net Sales（Consolidated） ■ Operating Profit（Consolidated）

NameH.I.S. Co., Ltd.（The fi rst section of the Tokyo Stock Exchange: Company Code 9603）

License No. No.724 by Commissioner of Japan Tourism Agency

CommonStock 6,882 Million Yen（October 31, 2012）

Established December 19, 1980

Address Shinjuku Oak Tower 29F, 6-8-1 Nishishinjuku, Shinjuku-ku, Tokyo 163-6029, JAPAN

Net Sales 479.4 Billion Yen（Consolidated Financial Results: October 31, 2013）

Number of Employees 11,776（Group’s Total: October 31, 2013）

Affi liations Japan Association of Travel Agents（JATA）International Air Transport Association（IATA）

Bank References

Sumitomo Mitsui Banking Corporation, The Bank of Tokyo-Mitsubishi UFJ, Ltd., The Tokyo Tomin Bank, Ltd., etc.

Subsidiaries

［Travel business（63）］　ORION TOUR CO., LTD　H.I.S. INTERNATIONAL TOURS（NY） INC., etc.［Hotels（9）］　THE WATERMARK HOTEL GROUP PTY. LTD.［Theme Parks（5）］　Huis Ten Bosch Co., Ltd.［Other（22）］　Kyushu Industrial Transportation Holdings Co.,LTD.

Board of Directors and

Corporate Auditors

Chairman Hideo Sawada

Representative Director, President Akira Hirabayashi

Managing Director Narimoto Kusuhara

Managing Director Kiyoshi Takagi

Director Hikaru Wada

Director Tatsuya Nakamori

Director Shigeru Nakatani

Senior adviser Kazumasa Namekata

Director Masahiko Hirata

Corporate Auditor Mikio Mikami

Auditor Tsunekazu Umeda

Auditor Toru Yamamoto

Senior Offi cer Haque Azadul　

Offi cer Kiyoshi Takano

＊Masahiko Hirata is an outside director.＊Tsunekazu Umeda and Toru Yamamoto are outside auditors.


1: Solar panel for large-scale photovoltaic power generation. 2: Sewage plant equipment for park’s sewage treatment. 3: Common ducts running throughout underground infrastructure. 4: Solar cells installed at 10 locations in the park.

hGroup Company

Operations by Each Group CompanyEach company of the H.I.S. Group is strengthening its CSR management because they are also related to the travel industry. Huis Ten Bosch installs the most advanced, environmentally-friendly technology such as solar power, ORION-TOUR is conducting tours to Kume Island and contributing to local revitalization, and Kyushu Sanko is ardently pursuing grassroots volunteer activities.

Huis Ten Bosch Co., Ltd.Enhancing Operations as a “Next Generation Energy Park”

1 2

3

4

Huis Ten Bosch, authorized by the Japanese government as a “Next Generation Energy Park,” is enhancing its operations. The major installation is a “Closed System of Production and Consumption” that consummates energy supply and consumption within the park.A 900kw solar-powered generator is already in operation. With power generation using natural gas, we have employed a co-generat ion system that shares wasted heat from power generation and eff ectively uses it for heating and cooling.Further, 100% of the raw garbage（approximately 1 ton per day） created within Huis Ten Bosch is converted into compost and reused in the fl ower pots and gardens. Sewage has been reused as splashing water and rinsing water for toilets after purified to 5ppm, which is far below the administrative

standard of 20pm. At the “Nagasaki Next-generation Energy ParkPavilion” in Huis Ten Bosch, various panels and videos are used to present the next-generation energy operations. As part of Sasebo’s “Furusato

Cu l ture , Env i ronment D i s cove r y Bu s iness”, we have continued to hold the “Huis Ten Bosch Environment Experience Study” intended for 4th graders of all elementary schools in the city. In the 12th study tour in fiscal year 2013, about 2,350 students of the citys 43 schools participated, visiting places such as environmental facilities and the “Nagasaki Next-generation Energy Park Theme Building” where they observed creatures and nature.This fiscal year, the smart house is expected to complete（re fe r to P25）. At the same t ime , we a re p lann ing to enter into a new solar power generation business（2.1 mega-watt scale） util izing our idle land, thus aiming at strengthening our undertaking of making the best use of natural environment- friendly renewable energies. Huis Ten Bosch intends to become a leading company in Japan as an environment protection-oriented company.

Co-Generation System

Nagasaki Next-Generation Energy Park Pavilion


ORION-TOUR CO., LTD.

Tokyo Symphony Orchestra

The company is promoting Kume Island sightseeing and supporting development of the local economy.ORION-TOUR CO., LTD. operates a variety of domestic tours all over Japan. Of the tours, the most energy is being put into Kume Island, one of the remote islands of Okinawa prefecture. Between April and September of 2013, Orion Tour had the greatest share of total direct flights between Haneda and Kume Island and fl ights between Naha and Kume Island. In Kume Island, Okinawa’s unspoiled, rustic scenery stil l remains. There are multitudes of fascinating spots, including Eef Beach, which holds a place in the “Best 100 Japanese Beaches,” and the “Eternity Beach,” where you are surrounded by 360 degrees of ocean and have unparalleled scenery. One reason for its lack of popularity compared to other remote islands is its name value, so Orion Tour planned special summer event tours to attract more visitors all year around. In

addition to sightseeing, they are introducing the island’s local products and actively supporting the revitalization of the island.Furthermore, they are also actively planning events for other r emo t e i s l a n d s i n Okinawa, make the islands more attractive to more people, and help develop the local economy.

Under H.I.S. Group’s corporate philosophy of world peace and mutual understanding, we ardently pursue the cultural exchange of music and the arts.Tokyo Symphony Orchestra, a public interest incorporated foundation, whose chief directorship Hideo Sawada, chairman of H.I.S., assumed in September 2012, has been making culture exchanges with people of a wide generation by actively holding concerts related mainly to educational and local activities such as music schools and charity concerts. I want to propose new-typed concerts familiar with you, and play an active part in the world.

Kyushu Industrial Transportation Holdings Co.,LTD.Continuing road and park cleaning activities as a grassroots company group.Kyushu Industrial Transportation Holdings Co.,LTD. runs a local and highway bus business, domestic and international travel business, and hotel and restaurant business, which are all predominantly based in Kumamoto prefecture.Al l o f those bus inesses are d i rect ly connected to the residents, who are the foundation of community socially and economically, and it is thus that they operate their businesses based on the corporate philosophy of “Providing customer-based services that allow the customers to prosper with the community and contribute to the development of society.” As a member of the community, we have been doing various volunteer activ it ies, which include park cleaning in the neighborhood of Kumamoto Transportation Center（by-monthly）, monthly cleaning around the West Garage and monthly cleaning activities along national roads as part of “Kumamoto City Fureai Beautifi cation” activities.In addition, every year, Kyushu Industrial Transportation Landmark Co., Ltd. installs bamboo lanterns at the “Mizuakari” community event as a set-up volunteer. They also conduct city-sponsored “onsite classes” on how to ride a loop bus,

once or twice a year at the local elementary schools, in addition to hosting original classes every year at elementary schools.National road cleaning volunteer.Kyushu Industrial Transportation Tourism Co. has actively accepted student interns, providing them with working experiences in its various work places. We will continue contributing to local prosperity and social development by deepening more actively communication with local societies from now on.

“Visiting lectures” to instruct how to ride a rout bus

Beautiful Beach in Kume Island


ISO26000 Core Subject Comparison Table Core Subjects Challenges List of Operations Pages

Corporate Management

Top Commitment P.4～5H.I.S. Corporate Philosophy P.9CSR Management P.9～10Corporate Governance P.11

Human Rights

Due Diligence “Counseling Hotline” and “Business Improvement Proposal” Operations P.18～19

Human Rights Crisis SituationComplicity DeterrenceGrievance Resolution Counseling Hotline P.18

Discrimination and Socially Vulnerable People Creating a Workplace Environment that Respects Human Rights P.18

Civil and Political Rights Economic, Social, and Cultural RightsBasic Principles and Rights Concerning Work “Human Rights” All Pages P.18～19

Labor Practices

Employment and Employment Relations “Labor Practices” All Pages P.20～21Working Conditions and Socially Secured Work Working Environment and Child Care Support P.20～21Social CommunicationsHealth and Safety at Work Working Environment P.20

Human Resource Development and Training in the Workplace Human Resource Development P.21

Environment

Pollution Prevention

Sustainable Usage of Raw Materials Greenhouse Gas（CO2） ReductionCarbon Off set P.24

Climate Change Mitigation and Climate Change Adaptation Greenhouse Gas（CO2） Reduction P.24

Environmental Protection, Biodiversity, and Recovering Natural Habitats

Eco-Tour Operations P.8, P.24Huis Ten Bosch P.25, P.28

Fair Business Practices

Corruption Prevention Establishing Fair Trade Relations P.22Responsible Political Involvement Fair Competition Establishing Fair Trade Relations P.22

Enhancement of Social Responsibilities in Value Chain Value Chain Implementation P.23

Respect for Property Rights

Consumer Issues

Fair Marketing, Unbiased Information Based on Facts, and Instituting Fair Contracts “Consumer Issues” All Pages P.12～14

Consumer Health and Safety Protection More Comfortable and Convenient Travel P.13

Sustainable Consumption Huis Ten BoschCSR on the World Stage

P.28P.17

Consumer Services, Support, and Claims and Dispute Settlement

Examples of Restructuring Based on Customer Comments P.13

Consumer Data Protection and Privacy

Access to Essential Services “Consumer Issue’s” All Pages P.12～14Education and Awareness More Safe and Convenient Travel P.13

Community Participation and Community Development

Community Participation “Community Participation and Community Development” All Pages P.15～17

Education and Culture Travel Business and Community P.15Job Creation and Skill Development Local Revitalization and Job Creation P.16

Technology Development and Access to Technology

Wealth and Income Generation “Community Participation and Community Development” All Pages P.15～17

Health

Social Investment ORION-TOUR CO., LTD./ Kyushu Sanko Group/ Tokyo Symphony Orchestra P.29

hISO26000 Comparison Table


I had a l iberty of reading CSR reports just l ike last y e a r . I h e a r t h a t t h e s e repor t s a re d i s t r ibu ted to al l your staf f , and that an arrangement has been made tha t any v i s i to r to you r headqua r te r s and sa les o f f i ces cou ld take f r e e l y s u c h r e p o r t s i n their hand and bring them back home, which I think i s a wonder fu l e f fo r t . I t is di f f icult for consumers

and your employees to grasp a clear image on how compan ies th ink about the i r soc ia l m i ss ion and responsibilities and how they are trying to achieve them. I see that your company has been making eff orts to fi nd a way out of the very problem.Regarding the contents of th is year’s report , I got information from the chairman’s address, etc. that you have completed reconstruction of Huis Ten Bosch, and created much busier traffi c in there than used be. And, at the same time, you have been making unique eff orts toward the “smart house” and “smart hotel”, as giving due consideration to this year’s energy situation and the global environment. I would like to pay tribute to you for the fact that you have succeeded in rebuilding Huis Ten Bosch, thus supporting local economy and employment, and at the same time, you have been proceeding with new efforts to create a society that

Impressions of H.I.S. CSR Report

Response to Third Party Opinion

Corporate Advisor,Nippon Association of Consumer SpecialistsKikuko Tatsumi

Third party opinion h

To further enhance CSR in future and create h i ghe r -qua l i t y CSR repor t s , we had a m in i -d ialog with Ms. Kikuko Tatsumi on February 5, 2013. The fol lowing comments by a third-party and responsible director were based on the mini-dialog.

makes sustainable development possible using Huis Ten Bosch as a base. I felt strongly that I would have to tel l more people these actual results and your perspective for the future. Also, according to the “special issue”, you have been developing unique tours in various ways. Especially, t he one i n wh i ch pa r t i c ipan t s v i s i t t he spo t o f development business, education and welfare support in developing countries is a valuable plan. I would like you to continue and expand this kind of tours. Fur ther , i n Tha i land and Indones ia , th rough the expansion of your outlet, you have made it possible for local people to enjoy travel more by providing the local people with detailed knowhow, working opportunities and training. You have been cultivating travel business as being welcomed by local people, which can be rated highly as a CSR activity.Regarding the report on consumer problems, the “Customer Consultation Office” reported that “the number of complaints” had declined, which can be valued. There is also a report that the “Excellent Travel Offi ce” has been researching and developing products in conjunct ion wi th the “Customer Consul tat ion Office”. This very coordination is important. You have also appealed to the “value chain”, which is a very valuable activity as a developed-type communication method with consumers. I regret that pages of the report have been detached.I strongly expect that you will continue issuing this report and that the role of the travel industry wi l l further increase.

H.I.S.’s CSR activities are to realize its corporate philosophy through concrete business activities. We will make efforts to create a company that can offer“Waku-waku”:the thrill, the entertainment and amazement through tourism while challenging new things and revolutionizing the society. For us to achieve the objective, we aim at becoming a company with high social values who maintains high profitability and offers higher value-added products and services while fulfilling customer-or iented serv ices, customer sat is fact ion

improvement and co-existence with local societies. I have received a request from Mr. Tatsumi reading, “I would like you to treasure communication with consumers, and reflect customers’ opinions in your management”. From now on, we intend to put more energy in a dialogue with our stakeholders including customers and employees. We will keep listening humbly to their opinions, and evolve and develop H.I.S..

Senior Advisor, CSR Promotion AdministrationKazumasa Namekata


Shinjuku Oak Tower 29F6-8-1 Nishishinjuku, Shinjuku-ku, Tokyo 163-6029, JAPANURL: www.his.co.jp Corporate Social Responsibility Report

H.I.S. CSR Report201410450070

CSR DepartmentH.I.S. CO., LTD

〈Please participate in our CSR Report survey.〉We thank you for reading the entire H.I.S. CSR Report. For further implementation and improvement of CSR, we would like to ask for your feedback.Please participate in our online survey through the following link:http://www.his.co.jp/csr/

Documents

Corporate Social Responsibility Report...our social responsibility through our main-stay business. In the current fiscal year, we raised a slogan of“Let us offer “Waku-waku”:the