Corporate Social Responsibility Report 2017

The Global Production Engineering Company

The Global Production Engineering Company

CSR Report 2017

Hirata Corporation

Corporate Social Responsibility Report

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the environment.

Universally designed fonts
are used to ensure legibility
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Recycle aptitude
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CSR 1308-1707040NI05

Hirata Corporation

Corporate Social Responsibility Report

Top Message
Introduction

messages of encouragement and support from all

cost-competitiveness, we are also focusing on thequarters, and we once again gratefully acknowledge

expansion of business in our global markets bystock market listing to the First Section of the Tokyo

the support from our many stakeholders - enabling

taking appropriate measures, such as increasing

Stock Exchange.

Hirata Corporation to continue its business operations.

the ratio of local procurement and local production

We sincerely appreciate your continuing support andthrough cooperation and collaboration with overseas

the encouragement we have received.

subsidiaries.

Hirata Corporation, as of June 15, 2017, changed its

We take this opportunity to express our sincere
gratitude to all related parties, including shareholders
and business partners, for their support.

In June 2016, we relocated our head office from

In keeping with expansion of our business operations,

We will accept the challenge of creating new

Tokyo to Kumamoto for the first time in 35 years, aiming

enhancing corporate governance, compliance and risk

manufacturing opportunities as a company thatto assist the restoration of Kumamoto, our birthplace,management systems becomes important.

contributes to society and turns our customers' desires

which was heavily damaged by the earthquakes.

We could minimize the impact of the Kumamoto

We will make every effort to work with local

earthquakes on our business activities by putting theinto reality while also, as a Kumamoto-based company
listed with the First Section of the Tokyo Stockcommunities in the development of Kumamoto under

Exchange, aiming to both accelerate the recovery of

the slogan "from Kumamoto to the world".

Kumamoto and increase corporate value.
We look forward to your continued support andguidance.
Together with stakeholders
FY2016 became an unforgettable year for us.
The Kumamoto earthquakes that occurred in April
2016 caused damage to our plant when part of theceiling peeled off and some component processing

BCP (Business Continuity Plan) into practice.
We will further strengthen our systems byincorporating lessons learned from these earthquakes.

Aiming at sustainable growth
In FY2016, the second year of the mid-term

We will enhance value in all stakeholders andincrease profits by making sustainable growth

management plan (FY2015 to FY2017), we recorded

decisions, pursuing manufacturing capability, enhancing

the highest ever consolidated net sales of 80.5 billion

management and by returning profits to stakeholders,yen.

thereby fulfilling our social responsibilities.

We sincerely thank our stakeholders for theirsupport.
"Efforts for globalization", one of pillars of the mid-

Conclusion
In the future, Hirata Corporation, as a company

machines required adjustment, but the effect on ourterm management plan, is the top priority issue

listed with the Frist Section of the Tokyo Stockproduction capacity was negligible.

for Hirata Corporation, whose delivery points for

Exchange, aspires to contribute to society by aiming

equipment are mostly overseas.

for sustainable development and a close cooperative

However, since many employees as well as ourbusiness partners and affiliated companies were also

In FY2016, we promoted group-wide globalization byaffected by the earthquakes, we had to continue

implementing a system of mutual personnel rotations

production during the upheaval.

between overseas subsidiaries and Hirata Corporation.

In such circumstances, we received heartfelt

relationship with more of our stakeholders.
We appreciate your continued support andcooperation in our endeavors.

In order to increase order volume and strengthen

President

Yuichiro Hirata

Editorial Policy
In order to inform the business activities of Hirata Corporation and the relationships with our
stakeholders, we hereby issue the CSR Report 2017.
By closer communications with stakeholders through the Report, we will improve our activity level.
We truly appreciate your direct opinions and comments.
Scope of report
Target Period:FY 2016 (April 1, 2016 – March 31, 2017)
Organization:Hirata Corporation, non-consolidated (consolidated results are added to the changes in business results)
Published:July 2017 (Next scheduled report: June 2018)
Reference Guidelines:GRI“Sustainability Reporting Guidelines 4.”
		
The Ministry of the Environment, Environmental Report Guidelines (2012 edition)
Contact details:Quality Control Department		
Accounting Department IR group		
Website/http://www.hirata.co.jp

01

The Global Production Engineering Company

TEL：81-96-272-3277 FAX：81-96-272-3345
TEL：81-96-272-5558 FAX：81-96-272-3618

Top Message………………… 1
Management Philosophy/
CSR Policy… ………………… 3
Overview of Company
and Business… ……………… 3
Products Information……… 4
Topics… ……………………… 5

Management

Corporate Governance… … 9Compliance,
Corporate Ethics… ………… 10
Risk Management…………… 11

Social Report
Together with
Customers… ………………… 12
Together with
Business Partners…………… 13
Together with
Employees… ………………… 14
Together with Shareholders
and Investors… ……………… 17
Together with Local
Communities… ……………… 18

Environmental Report

Environmental
Management………………… 19
Environmental Conservationin Business Activities… …… 21
Environmental Consideration
for Products… ……………… 22
The Global Production Engineering Company

02Corporate Social Responsibility ReportManagement
Philos ophy,
CSR Polic y

O ve rvie w
of C om pan yan d B u sin e ss

P r o d uc t s
I nf o r ma t i o n

Main Product Line Introduction
Under the management philosophy andCSR policy, Hirata Corporation will continue tocontribute to developing a sustainable society,cooperating and providing mutual support with
our many stakeholders to conduct businessactivities and activities of every single employee.

Management Philosophy
・MAKES THE BEST USE OF ITS MEMBERS.
・CHALLENGES TECHNICAL INNOVATION.
・RESPECTS HUMANITY.
・OPENS THE DOOR TO THE CREATIVE LIFE.
・CONTRIBUTES TO THE SOCIETY.
・MAKES OUR CUSTOMERS SUCCESSFUL.

CSR Policy

1

Through technological innovations, wemanufacture products that contribute tosocial development.
By realizing customers' desire for quality, safety, andproductivity, we will meet these expectations of society
through our ceaseless technological innovations.

2

We respect human rights of all persons whoare involved with our company.
We respect the individuality and personality of everyone
involved with our company and will build a workplace,where employees can feel pride and satisfaction in theirjob.

Company Name Hirata Corporation
Headquarters
111 Hitotsugi, Ueki, Kita,
Kumamoto, 861-0198 Japan
TEL：81-96-272-0555
FAX：81-96-272-7901
Representative
President and Representative
Director Yuichiro Hirata
Date Established Dec. 29, 1951
Accounts Closed Mar. 31 (annually)
Employee Number Consolidated 2,111 employees(1,710 employees full-time)Non-consolidated 1,325 employees(990 employees full-time)
Capital2,633 million yen
Stock Exchange Listings Tokyo Securities Exchange
The First Section of theTokyo Stock Exchange(Code: 6258)

3

4

Issued Number of Shares 10,756,090 shares
Number of Shareholders 3,829 people
Production base Kumamoto prefecture:
Kumamoto Plant,
Kumamoto East Plant,
Kusuno Plant, Shichijo Plant
Tochigi prefecture: Kanto Plant
Shiga prefecture: Kansai Plant

Business Results
Net sales
Non-consolidated

In the field of the semiconductor related production facility, we manufacture and sell load ports which transfer
silicon wafers into individual processing devices, wafer transfer robots for atmospheric and vacuum environment, as
well as EFEMs (Equipment Front End Modules) that integrates these components.
In the field of manufacturing panel devices, we manufacture and sell coating devices for panels and cutting
apparatus for glasses, and vacuum platform for processing, that corresponds to the production facilities that are
related to LCD screens and the organic electroluminescence (organic EL).

80,542

38,19733,71853,04852,14547,12937,72528,162Wafer Transfer Robot

Mar-13Mar-14Mar-15Mar-16

Mar-17

Ordinary income
Non-consolidated

Consolidated

Unit: millions of yen
8,039

6,182

1,962

1,658
394

725

2,345

2,825

929

△259

Mar-13Mar-14Mar-15Mar-16

Mar-17*As of March 31, 2017

The Global Production Engineering Company

General meeting of shareholders

Semiconductor Production Equipment Business

62,7845
03

Clutch Assembly Line

Unit: millions of yen

Consolidated

We build up appropriate relationships withall stakeholders.
We formulate appropriate relationships based on
mutual trust with all stakeholders, and business partners
and will cooperate with each other for sustainablegrowth.
We make efforts to protect the environmentand contribute to society through all
corporate activities.
By striving to protect the environment, we ensure asafe and healthy life for local residents and will actively
contribute to the society.

We engage in the manufacturing and sales of a wide rangeof products and major components from our facilities, such asengines called power-train and main components for the powertransmission/driving of transmissions, as well as electronic devices
controlling computers, automotive electronic components forvarious types of sensors, air compressors for air conditioners, ABS
brake modules, motors of hybrid cars and driving inverter, etc.

*Changed stock market listingon June 15, 2017

38,146

We comply with related laws, social norms
and internal regulations and carry out fairand impartial business activities.
We carry out fair and impartial business activities incompliance with laws, etc., and secure transparency
through timely and appropriate information disclosure.
Through these activities, we maintain a soundinvestment environment.

Automotive Production Equipment BusinessCoating Device

Vacuum Platform

Home Appliances and Other Production Equipment
We manufacture and sell production equipment for manufacturers of electronic and electric machinery andequipment, including such home appliances as flat TVs, refrigerators, andvacuum cleaners.
Our products adapt to automatic assembly systems with various
sizes and shapes, including high-speed assembly of small condensers,
incorporated into electronic components, compressors for refrigerators
and air conditioners.
They also adapt to transportation equipment and manufacturing
devices of automotive tires.
Automatic Assembly Systems of Home Appliances
The Global Production Engineering Company

Election/Dismissal04

Corporate Social Responsibility Report

Reports on the
Kumamoto earthquakes

Topic sWe report on the Kumamoto earthquakesthat occurred in April 2016.
Conditions when the earthquakes occurredSupport for business partners

A large magnitude 7 earthquake struck the Kumamoto region at 21:26 JST on April 14, 2016 (Thursday).
Though there were some employees in the office, working overtime, fortunately nobody was injured.
We conducted an investigation of buildings and equipment, but no significant damage was found except for minor
cases such as the collapse of shelves and objects falling from shelves in the upper floors of buildings.
While we were relieved that the extent of damage suffered was not as serious as expected, a second magnitude 7
earthquake (the main shock) hit Kumamoto again at 01:25 JST on April 16, 2016 (Saturday).
Since the shock of the quake was bigger than the foreshock, we suffered more serious damage, such as the crackingof building walls, overturning of racks, and the failure of elevators.
However, there was little damage to production facilities and electricity was back on in a few hours. Though someturbid water was also found, there was no suspension of water supplies because we were utilizing groundwater.
We avoided any damage that may have had a devastating effect on the business continuity, and were able to continue
production activities without suspending operations, while also helping with tidying up and restoration activities.

After the initial Kumamoto earthquake foreshock on April 14, 2016 (Thursday), we created an emergency response
project team within the procurement headquarters on 9 a.m., April 15 (Friday) and checked the status of damage
suffered by suppliers.
Following the main shock on April 16 (Saturday), we conducted a further investigation.
Fortunately, no-one was hurt by either the foreshock or the main shock, but some suppliers were affected by theearthquakes and suspended production.
Damage status
After the foreshock After the main shock
on April 14, 2016
on April 16, 2016
Suspension of production

14 companies

37 companies

Affected suppliers

33 companies

71 companies

Restoration status(the number of suppliers that suspended production)
April 28

May 9

June 615 companies

4 companies

0 companies*excluding the partial suspension of production

Activation of the BCP (Business Continuity Plan)

After the main shock, 37 suppliers suffered damage to their production facilities. 22 suppliers recovered at the end of
April (two weeks after the main shock), and 11 more suppliers recovered by May 9 (after Golden Week). By mid-June,
two months after the Kumamoto earthquake, operations were back to pre-earthquake levels.
As part of our support for damaged suppliers, we mainly placed orders with suppliers in Kumamoto, provided
support for logistics, and made payments in cash.
The amount of orders placed with processors in Kumamoto in FY2016 doubled compared to the previous fiscal year.
We will continue cash payments and offering support for restoration activities.

Hirata Corporation has introduced a safety confirmation system which confirms the safety and damage status of
employees and their family members whenever there is an earthquake, while informing them of the Company policythat places the maximum priority on human life.
As the main shock occurred during a holiday, the BCP Secretariat and the manager of each business divisionconfirmed the damage status of facilities and equipment, while collecting information and taking emergency measures.
Based on the information received, the person responsible for the BCP determined the actions to be taken andinformed employees of the decisions made through the safety confirmation system.
We could perform all confirmation and information transmission smoothly utilizing the safety confirmation systembecause response training had been held twice a year.
On the first working days after the main shock, we also held an BCP emergency response meeting where we
considered subsequent responses based on the safety and evacuation status of employees and their family members,
as well as the state of damage to facilities and equipment. Instructions were also issued to each department.
During the initial activation of the BCP, even though we faced unexpected difficulties in identifying the overall extent
of damage and there were some points to be reviewed and issues to be addressed, the cooperation received from all
employees enabled us to cope.

Support for employees
Immediately after the earthquake, frequent aftershocks meant that water and gas supplies were suspended in someareas.
We allowed access to our shower rooms and distributed relief goods because many employees had to continue tolive in evacuation centers or stay in vehicles.
In terms of our systems, we granted special leave to employees who were forced to be absent from work due to theearthquakes, started up a restoration loan system, and provided relief money as a means of life-support for employees.

■Responses to the Kumamoto Earthquakes
Disclosure of informationon the website about theeﬀect of the earthquakes

April 14,2016

April 15

Occurrence of the foreshock

Disclosure of information on thewebsite about the eﬀect of theearthquakes (the second report)

April 16

April 17

Occurrence of the main shockConﬁrmation of the safetyof employees

Conﬁrmation of the safety of
employees

Reporting the safety status to the BCP manager and supervisor
Launching the emergency response
project team within the
procurement headquarters

April 18
Holding the BCP
emergency response meeting- Reporting the status of thesafety and evacuation of
employees and their family
members- Future measures for buildings
and infrastructure

Disclosure of information on thewebsite about the eﬀect of theearthquakes (the third report)

April 19 to April 20

A press conference was held on May 12, 2017. This announced therelocation of our head oﬃce from Tokyo to Kumamoto.

April to 21 April 30

After May
Improvement of the BCP system and manual

Support for employees- Distribution of relief goods- Allowing aﬀected employees to use the dormitory

Support for employees

Support for business partners- Starting the restoration loansystem- Provision of relief money- Logistics support(May 9 to May 13)- Cash payment

Conﬁrmation of the status of damage caused to business partners
Checking the status of damage to facilities and equipment and starting repairs

05

The Global Production Engineering Company

The Global Production Engineering Company

06

Corporate Social Responsibility Report
TopicsRestoration support efforts for Kumamoto

Hirata Corporation will continue proactive efforts to assist the restorationof our hometown.

Topics

We will introduce the main topics from
April 2016 to March 2017.

Live together with Kumamoto. We relocated our head office from Tokyo to
Kumamoto.
On June 23, 2016, we relocated our head office from Tokyo to Kumamoto.
When our company was founded, our head office was located in Kumamoto but we relocated it to Tokyo, thecenter of Japan, in 1981 in order to do business with the world.
In recent years, we have become increasingly able to deal with companies in more than 40 countries aroundthe world in various fields including automobiles, semiconductors and home electronics. Therefore, we concluded
that our original goals had been attained. Thus, we were considering returning our head office to Kumamoto
to further improve the efficiency of our business
operations.
Then the Kumamoto earthquakes occurred.
We decided on the relocation of our head office,wishing to do something for our hometown.
We want to contribute to Kumamoto using the
global business network of the Hirata Corporation,
accepting orders from all over the world.
We hope to overcome any hardships by working
together with people in our hometown.
On May 12, 2016, a press conference was held regarding the relocationof our head office

Introduction of a shareholder special benefit plan supporting the restoration of
Kumamoto Castle
In FY2016, we introduced a shareholder special benefit plan aiming to provide support for earthquake
restoration and the restoration of Kumamoto Castle.
We multiplied the number of shareholders by 10,000 yen then donated this amount to Kumamoto-shi throughthe "revival lord of a castle" system.
Privileges such as the "revival lord of a castle", including free admission to tourist facilities and discounts atparticipating stores in Kumamoto-shi, will be granted to participating shareholders through the issuance of special"lord of the castle" identification.

Shareholders' special benefit prepaid card (called a "QUO" card)with donations for rebuilding Kumamoto Castle©2010 Kumamoto prefecture Kumamon #K1761

07

The Global Production Engineering Company

Expansion of the production area and relocation of an
office■ Expansion of the organic EL-related production area at the Kumamoto
East Plant in October 2016
We added 2,570㎡ , including a clean room, at the Kumamoto East Plant(Ueki-cho, Kita-ku, Kumamoto) for organic EL-related production and started
operation in October 2016.
Production space extended to about 4,400㎡ to deal with increased
production.
Hirata Corporation has technical strength in the production of various
devices involved in each process carried out by organic EL-related
production equipment.
With this enhancement of the production environment, it is now possible
to deal with the increase in orders and production.

The portion circled with a red line
indicates an addition.

■ We relocated our Tokyo office to Minato-ku.
We relocated our Tokyo office from Togoshi, Shinagawa-ku, to Kaigan,
Minato-ku, in October 2016 to provide a better working environment for
employees, to safeguard the structure of the building, and to allow goodtraffic accessibility.
The office provides us with more convenience and mobility because we
can now easily access major stations and Haneda International Airport.

Commendation from customers■ We received the "Partnership Award" from Dyson Ltd., forthe third consecutive year
Hirata Corporation received the Partnership Award at Dyson's
supplier day held in 2016.
We were honored for our contribution to Dyson's productionof various types of motors, as well as our contributions to itsdelivery management, technological capabilities, and quality
control. This is the third consecutive year that we have received
this award.
At the launch of Dyson's hair dryer, held in Tokyo, Mr.
James Dyson, the founder of Dyson Ltd., commended theHirata Corporation on being an excellent company which has
partnered with Dyson throughout the years.
■ We received a "Global Cooperation Award" from DENSO
Corporation
Hirata Corporation received a "Global Cooperation Award"
from DENSO for the first time. We were recognized for our
significant contributions to DENSO, such as the short delivery
time and the on-site installation of its injector assembly line,
which is used in the fuel injection equipment of diesel engines
supplied to Thailand and Hungary.
The Global Production Engineering Company

08Corporate Social Responsibility ReportManagement

Compliance, Corporate Ethics

Corporate Governance

Ma nagement

We are committed to ensuring thorough implementation of complianceand corporate ethics to conduct fair and impartial business activities.

We are enhancing corporate governanceto meet the expectation of trust from allof our stakeholders.

Compliance Charter
Fundamental Principles

Because of our "global" nature, we at Hirata Corporation as well as each of our Group companies abide by a set of established rules we call
our "Code of Conduct" and strive for total compliance to it in order to effectuate commercial endeavors that are both fair and transparent
always in accordance with legal statutes both domestically and abroad along with societal norms and in-house regulations.

Basic Stance

Code of Conduct

At Hirata Corporation, as a company targeting the global market, we promote the effective management as wellas the emphasis on corporate governance to fulfill the social responsibilities, while also enriching the compliancesystem and by planning to strengthen the competitiveness of business to improve the corporate value.
Moreover, we believe that companies should assume and stand in the shoes of the public,
public interest,
Non-consolidated
Consolidated
and social factors and keep a good relationship with all of our stakeholders will lead to the improvement ofshareholders.
47,129Corporate Governance Framework

38,14633,71852,14538,197

Unit: millions of yen
80,54262,78453,04837,72528,162The Board of Directors at Hirata Corporation consists of 12 directors (including 2 outside directors).
The appropriateness of the president’s duties in the Board of Directors is audited by the Board of Auditors
Mar-13Mar-14Mar-15Mar-16
Mar-17
including an external auditor and all audit members.
The Internal Audit Department, which was established as a department directly reporting to the President,
Non-consolidated
Consolidated
Unit: millions of yen
8,039
conducts audits of the Business and Administration Divisions in collaboration and cooperation with the auditors.
For important matters of compliance, the Company will consult with legal advisers if necessary to receive useful
6,182
advice.
Furthermore, the Company has introduced a management meeting and executive officer system.
2,825
We are working to strengthen the corporate governance where 16 executive officers have been appointed
2,345
1,962
1,658
(of them 10 also serving as a director) by carrying out each responsibility quickly and accurately, while also929
participating in discussions related to the importance of business during management meetings. 394 725

Based on our business principles, we at Hirata are fully aware of our mission and role as a corporate entity with respect to our valued
customers, shareholders, business partners, employees as well as the members of our local community and, in order to make a contribution
to society at large, the following Code of Conduct is applied to all employees of every company in the Hirata Group with every single
employee having the responsibility of maintaining and improving upon them.
1. Abiding by legal statutes and regulations
We at Hirata shall always abide by relevant laws and internal
regulations whenever engaging in business activities, always
compliant with social logic.
2. Engaging in fair and just business
We at Hirata, as a company that develops and provides
optimal products and systems that benefit society, shallprioritize customer satisfaction and work to build fair, just andtransparent relations with business partners.
3. Disclosure of corporate information
We at Hirata shall disclose information on the managementof our company as well as on the condition of our activities
to shareholders and investors at the suitable time and in
an appropriate and fair method always in accordance with
relevant laws and statutes.
We shall take all the proper precautions whenever handling
non-disclosed corporate information (insider information)
making sure there is no profit-sharing or favors bestowed toindividuals involved in the transaction of equity and othersecurities based on this information or to other parties.
4. Proper management and utilization of corporate assets
We at Hirata shall manage our company's tangible and nontangible assets in accordance with internal regulations and neverfor personal gain or in ways contrary to corporate objectives.

5. Contribution to society
We at Hirata, as a good corporate citizen, shall place ourenergy in protecting the environment, reusing natural resourcesand developing the local community with the hope ofentrenching ourselves deeply within the community.
We are against antisocial movements and organizations thatthreaten the order and security of the citizenry and vow neverto associate with them.
6. Respecting the individual
We at Hirata shall strive to respect the rights, privacy, characterand individuality of each and every single individual and makefor a happy workplace for all.
7. Controlling confidential information
We at Hirata are devoted to the strict management of not only ourvalued customers' personal information but also our own secretcorporate information and employees' confidential data, which we
vow never to illegally or unfairly, disclose or leak either during theiremployment or after their departure from this company.
8. Duty of practice and accountability
We at Hirata shall promptly report any and all infractions of thisCode of Conduct in the event of their detection during the courseof the execution of business in accordance with the same.
Should such a report be issued, the employee or employees inquestion shall be protected from liability.

△259※Directors Number Mar-13
is as of June2017 Mar-16
Mar-14 27,
Mar-15

Election/Dismissal

General meeting of shareholders
Election/Dismissal

Election/Dismissal

Board of Directors
Representative Director

Audit

Board of Auditors

Directors

ReportCoordination/
Cooperation

Instruction

Advising/
Instruction

Legaladvisor,etc.

ReportElection/
Dismissal

ReportSupervision

Coordination/
Cooperation

Internal Audit Department

Audit

Coordination/Cooperation

Audit

Executives
Sales Department/Management Department

09

The Global Production Engineering Company

Audit

Financialauditors

Mar-17

Compliance Education
Hirata Corporation provides various opportunities to educate employees regarding business principles andcompliance changes in order to ensure compliance with all relevant laws and regulations in Japan and overseas,
company regulations, and any other social norms.
In FY2016, we provided training which focused on the prevention of insider trading, extending the scope oftargets to also include domestic affiliated companies.
We worked to reduce the risk associated with insider trading within the Hirata Group by providing training tothe officers and employees of domestic affiliated companies, using specific examples of actions to be taken by
employees to ensure the trust of shareholders and investors and the integrity and fairness of securities trading.
If concerning matters related to compliance occur, internal notification will be issued, and training for anyone
related will be conducted to improve the awareness of compliance and to prevent the relapse of this.

Helpline
In May 2008, Hirata Corporation established an external reporting contact“Hirata Helpline”under the“Codeof Conduct”for employees to report problems that may violate laws and internal regulations, and to address
potential risks that may violate laws and internal regulations as early as possible.
“Hirata Helpline”has a principle of anonymous reporting and a whistle-blower shall not face retaliation due towhistleblowing.
The investigation result will be reported to the Compliance Committee and addressed appropriately.

The Global Production Engineering Company

Emergency incident

10General meeting of shareholders
Election/Dismissal

Election/Dismissal

Management

Board of Directors

Risk Management

Representative Director

Audit

Corporate Social Responsibility Report
ReportBoard of Auditors

Directors

We have developed a risk managementInstruction
system which enables us to accurately
Advising/
ReportCoordination/
Audit promptly.
Audit
determine various risk factors
andCooperation
Instruction and respond to them appropriately
Election/

ReportLegal
BCP (Business ContinuityPlan) Dismissal
advisor,Supervision
etc.

Internal Audit Department

Coordination/Cooperation

Audit

Financialauditors

Quality Assurance
Hirata Corporation has constructed a framework to promote a Quality Management System (QMS). Under the
responsibility and authority of the quality control representative, eachdepartment promotes QMS and engages in quality assurance activity.
In order to provide safe products that our customers can use with peaceof mind, we are working to improve the basic knowledge of those in chargeof design and production regarding standards and certification systems
relating to product safety by providing in-house education (ISO, IEC, and risk
assessment) conducted by a qualified person (safety assessor)*.
In this fiscal year, to assist the updating of ISO9001 and ISO14001
standards to the 2015 version, we provided specialist education for eachorganizational layer (management, managers, auditors, and persons in charge
ISO education to managementof administration) by inviting external specialists.
Based on the contents of this education, we conducted a review of the mechanism by which standards in the 2015
version were incorporated, and provided education to all employees on the correct operation of the restructured contents.

Setting up Response Headquarters and conﬁrming damages and safety.

external system of confirming safety in orderFrom
to confirm safety quickly and efficiently.
the day
With the above system, mail can beContacting customers, suppliers, and aﬃliates
sent to confirm safety from the outside or
remote areas and totals can be confirmed.
Community
Establishing BCP and systems
We regularly send test emails as drills
Activities
From few daysfor employees to respond quickly.
to few months
Making the best use of lessons learned
Correspondence to customers Correspondence to employees/
Financial Action
Securing of Funds, Payment,from the Kumamoto earthquakes, webusiness resources
and cooperative companies
Adjusting and restoring business transactions Emergency measures and restoration
and Fundraising
prepared the "BCP card" in which actions
to be taken, communications, and allother necessary matters to be dealt with
Restoration
upon the occurrence of an earthquake
are summarized.
Employees can carry this handy-sized BCP card in their wallets, etc., in order to help raise awareness of disasters, evenduring normal times, as well as to help them take appropriate action in the event of an earthquake.

FY2014FY2015*A qualification system that certifies that the holder of the qualification has a comprehensive knowledge of safety
standards for machinery,
based on
1.Product
FY2016
international safety standards (ISO and IEC), and is able to judge whether or not something is safe.
Evaluation
4.1

品質管理責任者

手順

In order to protect information assets from threats such as leakage
and damage and to safely carry out business（ISO9001）
activities, the information security management system and the information management committee has been
MR会議
established to develop security management regulations to prevent exposure of confidential information.
基準
力量
（全社）
品質会議
（HS）
（人材育成）

品質保証

（各部門）

（各部門）

（各部門）

The Global Production Engineering Company

3.9

2-1.Evaluation of
person in charge(Sales)

3.7
3.5

3.3
We are working to improve customer satisfaction through the opportunity for each department
to interact with
2-2.Evaluation of
4.Servicecustomers, collecting customer's opinions and suggestions to improve our
products, as well as our service support.
person in charge
Evaluation
From FY2014 onwards, we distributed customer satisfaction surveys with a common set of questions to all (Technology)
customers.
Based on these valuable opinions, we will strive towards strengthening the service support and cooperation withdepartments in the future.
2-3.Evaluation of
3.Technology

person in charge(Manufacture)

Evaluation(from customer satisfaction survey results for FY2014 to FY2016)
ISO監査チーム

Satisfaction weighted average score (5 points max.)
FY2014

1.Product
Evaluation

FY2015

Continuity for the future

FY2016

Continual Use

4.1

5.Corporate
Evaluation

Export Control
In the global community, the importance of security trade controls has been increasing品質会議
against the品質会議
backdrop of
品質会議
global threats (terrorism and the development of nuclear weapons, etc.)
Hirata Corporation has established the "Regulations for Security Export Controls" to help implement appropriate
security trade controls designed to maintain global peace and safety and has strengthened security export control
systems regarding the appropriateness of goods and technologies, responses to the revision of laws, employee
education, and internal audit procedures.
We also obtained special blanket permission for export and service (program relating to use) transactions, by which
individual export exemptions can be obtained from the Minister of Economy, Trade and Industry with respect to somegoods and services.

5.Corporate
Evaluation

Customer Satisfaction

経営者

Information Security

We are working hard to meet the needsof our customers regarding quality,
safety and productivity and provide
products and services that satisfy them.

S o c i a l Rep o r t

To avoid unexpected disasters and problems that may hinder business operations, we will consider all possible risks
in advance and take into account prevention, protection, and reduction measures to ensure that our business operations
resume in the shortest possible time after a disaster.
Executives
・In the unlikely event that our company itself is the victim of a disaster, we make re-establishment of our business a priority
Sales Department/Management
Department
to ensure that we are there to meet the needs of our customers
and/or stricken areas that requireassistance.
・In advance of any possible phenomena (disasters, unanticipated problems), we implement precautions and restorationplans taking into account any possible risks which may exert a large effect on core business operations, as well as
continually practice disaster prevention and BCP training.
・During normal hours, we provide training for our employees, implementing a clearly defined plan of action for emergencies
and disasters.
Confirmation of safety of employees in
Emergency incident
case of disasters is a top priority item inthe efforts of BCP.
Initial response, BCP activation
Hirata Corporation has introduced an

11

Together with Customers

Coordination/
Cooperation

3.9
3.7
3.5

（各部門）
品質会議

2-1.Evaluation of
person in charge(Sales)3.3

2-2.Evaluation of
person in charge(Technology)

4.ServiceEvaluation

3.Technology
Evaluation

2-3.Evaluation of
person in charge(Manufacture)

No Opinion

Will not use

2014

78％

21％ 3％

2015

78％

20％ 2％

2016

76％

24％

0％

50％

100％

The Global Production Engineering Company

12Corporate Social Responsibility ReportSocial Report

Together with Business Partners

We are working to build cooperative relationships based on trust withour business partners to secure good long-term business partnerships.
Suppliers Meeting
In June 2016, we held the 2016 Supplier Meeting in Kumamoto City's Ueki Culture Hall with attendants from 217
people and 141 companies.
At this meeting, we focused mainly on financial results and trends in the Hirata Group, market trends, and thebusiness plan and procurement policy of each department. We also
awarded best performance awards (3 companies), best supplierawards (10 companies), special awards (2 companies), and letters ofappreciation (20 companies) to suppliers that had contributed greatly tothe production activities of the Hirata Corporation in FY2015.
In addition, we expressed our sympathy to all those affected by
the Kumamoto earthquakes and our gratitude towards all those who
showed such warm support. We also reported on the status of damage
to the Hirata Group.
All participants found this a useful and productive meeting, thecontents of which may be passed on to each supplier for incorporationin their business plans.

Skill Training Seminars, Study Sessions
We held a training session to enhance welding skills and a seminar to support
the development of human resources, aiming to build an ongoing partnership with
suppliers.
In August 2016, we provided a practical workshop for 16 suppliers (27participants), inviting an instructor from a Japanese company employing top-classwelding engineers.
In September 2016, we provided 6 coaching/business/management/financeseminars for senior management and upcoming managers from 23 suppliers (31 participants) to support the developmentof human resources. The "reporting, contacting and information sharing" seminar was a new addition this year.
We received positive feedback from participants agreeing that the contents of this seminar are useful for promoting highquality business operations.
Hirata Corporation aims to build an ongoing partnership with our suppliers and to work collaboratively with them.

Together with Employees

We are working to develop a workplace where individuality and personality of
employees are respected, and they can take pride and satisfaction in their work.

Global Human Resource Policies
By combining our basic policies concerning the mechanisms and operations of the Hirata Group's various common systems as“Human
Resource Policies,”and implementing specific measures based on these, we will strengthen our commitment to being a company where
employees can act with pride and satisfaction through their work.
1. Respect for human rights and diversity
We shall respect the individual character and the human rights of all people working in the Group.
We definitely do not do any harsh and inhumane treatment including sexual harassment, sexual abuse, abuse of authority, corporalpunishment, mental or physical coercion or verbal abuse of workers.
We definitely do not employ child labor or forced labor.
We shall treat and appraise each and every employee in a fair and impartial manner.
We shall not discriminate against any employee on the basis of nationality, race, religion, age, gender, physical or mental disability, orother legally protected attributes.
2. HR activities in compliance with applicable laws and regulations.
We shall comply with all applicable laws and regulations of each region regarding the employees' rights.
The rights of workers to associate freely, join or not join labor unions, seek representation, and join workers councils in accordance withlocal laws shall be respected.
3. Fair, equal, and transparent HR system
We aim for a fair, equal and transparent HR system.
4. Support for skill development
Based upon our Corporate Philosophy of "Makes the best use of its members", we shall positively support for professional development.

We support professional development.
Hirata Corporation strives to create a work environment where employees can grow and realize their potential under ourmanagement philosophy, "Makes the best use of its members".
In FY2016, in addition to the stratified educational program that has been implemented every year, we introduced anoverseas posting program - announcing suitable opportunities.
The purpose of this program is to encourage young people, who will lead the next generation, to develop into highly
capable leaders who can perform on a global stage.
We introduced this program by focusing on enhancing communication skills, management capability, and professional
abilities, including language skills and cross-cultural understanding developed by engaging in business activities in overseas
subsidiaries for a few years.
In the first year, 11 employees who applied were selected and posted to 8 countries (9 business locations).
Though it requires a lot of time for this sort of program to produce results, we will continue to implement it in order tosteadily enhance the capabilities of Hirata Corporation and meet the expectations of customers around the world.

VOICE

VOICE

Overcome hardships and take on more challenges

Develop and refine an international outlook and sensibility that, in turn,enhances both personal growth and the accumulation of company assets

Representative Director, Kumabou Metal Co., Ltd. Hiroaki Maeda
Our company engages in metal-surface treatment such as the polishing and plating of metals. We
received the best supplier award in FY2016.
I feel very honored that the quality, prices, deliveries and services provided by our company havebeen commended.
In April 2016, our office and plant were affected by the Kumamoto earthquakes.
At that time, peer companies from the Kyushu Electro Industry Association undertook our business.
The construction company that built our plant was the first to arrive to help us restore the plant, andHirata Corporation supported us in terms of physical distribution.
In June, we completed restoration work thanks to the united efforts of all employees. We are very
grateful to all those who supported and helped us.
We will endeavor to keep taking on new challenges, cultivating new skills, and improving quality strengthening the collective power of our company.

13

Social Report

The Global Production Engineering Company

Hirata Engineering Europe GmbH (Germany) Yosuke Sora

I applied for the overseas posting program through the opportunity announcement system because
my goal is to become an engineer who can play a part on the global stage. I was then selected to go
to Germany.
If I raise my hand, I may have a chance to gain valuable experience. I really appreciate such a
supportive environment.
I would like to develop my international awareness and sensibility so that I can engage in effective
face-to-face dialogues and discussions in overseas countries.
I think that if we proactively introduce the latest technology from Europe, enabling us to enhance
the technical assets of the Company, we can then deal more effectively with the requirements ofcustomers around the world.
I will ensure that I link this opportunity to my personal growth, and I would also like to thank mycolleagues at work and my family who have all helped me.

The Global Production Engineering Company

14Corporate Social Responsibility ReportSocial ReportSocial Report

Together with Employees

Respecting human rights and diversity

Together with Employees

Number of re-employed persons above 60 years old (Unit: persons)RetiredEmployees

Fiscal Year

2012

25

Re-employment
Applicants

18

Re-employed
Persons18■ Efforts for Re-employment
2013
23
17
17
Under the "Re-employment System" established in 2006,
2014
11
9
9
the Company has entered into re-employment agreements
2015
13
9
9
with retired employees so that they can continue to apply
2016
27
23
23
their skills, utilizing their superior knowledge and experience.
We make efforts so that re-employed persons can work in accordance with their respective lifestyles, adjusting andconsidering working days and hours based on the desires of re-employed persons and the content of each business
contract.
Based on the Law Concerning Stabilization of Employment of Older Persons as revised in April 2013, we have revised
our re-employment system, and reemploy those who desire until 65 years of age.
■ Proactive Employment of Disabled Persons
The employment rate of disabled persons for
FY2016 was 1.36%, falling below the statutory
employment rate of 2.0% after the revision.
We will endeavor to achieve the statutory
employment rate - adjusting the balance between
individuals and duties, having staff participate inbriefing sessions hosted by related organizations, andacquiring trainees from vocational schools.

2.50
2.00

1.90％ 2.11％

1.95％ 1.74％ 1.36％

2012

2014

1.50
1.00
0.50

（％）

2013

2015

Legal
Employment
Ratio
2.0％

2016 （Fiscal Year）

Changes in Employment Ratio of Disabled Persons (%)■ Measures Against Harassment
We held power and sexual harassment workshops during compliance training for employees (60 minutes/each and
12 times/year), training for newly appointed section managers and chiefs (240 minutes/each and once a year), and labor
management training for management staff and managers (90 minutes/each and 9 times/year), respectively.
■ Retirement Ceremony
We hold retirement ceremonies two times a year in June and December to commemorate those who are beginning a
new phase of life in retirement.
It is a ceremony to show Hirata Corporation's gratitude towards those who have supported our company for years on
end.
Retirees should consider this ceremony to be the best time to start their second life or, for rehired employees, to be
the best opportunity to make a new start with a fresh state of mind.

Work-life Balance

Number of Employees Receiving Childcare and Nursing Care Leaves (Unit: persons)Fiscal YearChildcare Leave

FemaleFY2014FY2015FY2016

15

15

17

Male
1
1
1
In FY2016, we implemented new policies (1) prohibiting
Female10914overtime work on a pay-day and (2) prohibiting overtime
Shorter Working
Hours for Childcare Male001
work on a bonus pay-day, in addition to "prohibiting overtime
Female120work on Wednesday", "prohibiting overtime work past
Nursing Care
Leave
Male
0
0
0
midnight", and "prohibiting work on statutory holidays".
As a result, despite a significant increase in orders received and increased sales, the average overtime work in FY2016 forthe whole company decreased to 26.6 hours, compared with 26.9 hours recorded in FY2015.
In addition, we implemented new policies whereby "the eligibility for shorter working hours was significantly extended
from an employee who has a child less than three years old to an employee with a child in the third grade at elementary
school" and new systems by which "an employee can take special leave for up to 4 weeks before taking pre-childbirthleave", making them available for all employees who wish to make use of these benefits.
We will aim to create a better workplace environment in order to facilitate further improvements in the work-life balance.

15

The Global Production Engineering Company

VOICE

Significant support for balancing work and family
Business Management Gp International Business Headquarters, Yuko Tashiro
Regulations for childcare and nursing care leave have been revised, as from January 2017, and eligibility
for shorter working hours has been extended to include any employees with a child in the third grade atelementary school. I am also entitled to obtain this benefit.
My husband has difficulty in arranging his work schedule around the time our child arrives home, andwe have few close friends nearby who can help us. Therefore, I couldn't have asked for a better solution
for us.
Before, I was always pressed for time and in a bad mood. But now, I am less rushed and have moretime to interact with my child.
I thought I would avoid causing trouble for my co-workers at work as much as possible and reviewed
my previous duties. Now I am trying to be more creative.
I think this system, with better cooperation and surroundings, will provide a lot of support for balancing work and family, andalso help junior staff who will play an important role in the Company in the future.
I will live my life and carry out my daily activities remembering that a balance between work and family cannot stand firm without
the cooperation of society, workplace, and family.

Labor Safety and HealthWith a motto,“All employee participation in zero accidents", Hirata Corporation holds a safety and healthmeeting in each plant and a company-wide safety and health meeting every month to promote systematic healthand safety activities.
The company-wide safety and health committee receives reports from each department relating to thepromotion of safety measures based on the annual plan, confirms the details of any accident that occurs,
discusses how best to prevent any recurrence, and formulates and establishes new rules regarding safety andhealth.
In the health and safety committee held at each plant, we correct according to the results of patrol and brief on
all information discussed at the company-wide meeting.
In addition, we strive to ensure the safety of our plants by means of risk assessment and hazard prediction
training during the morning meeting held at each work site.
Executives carry out safety patrols during "National Safety Week" every July to help manage the work
environment and raise awareness of safety in the workplace.
As a result, we were able to achieve a zero accident result in FY2016.
We will strive to maintain a zero accident rate through the continuing participation of all employees.

TOPICS

Implementing a joint fire drill with alocal fire station
We implemented a joint fire drill with the newly established Kumamoto Kita Fire
Station on the first day of the 2016 Autumn Fire Prevention Campaign.
A successful fire drill was carried out, including reporting, evacuation and fire
extinguishing, as well as an evacuation drill using a ladder truck and a rescue drill
involving firefighters wearing breathing apparatus.
Evacuation drill involving a ladder truck

The Global Production Engineering Company

16Corporate Social Responsibility ReportSocial ReportSocial Report

Together with Shareholders and Investors

We provide appropriate and timely disclosure of information to ourshareholders and investors, with the intent of enhancing IR tools.

Hirata Corporation believes that a fair and equal pricing of shares is on the premise that information on
investment decisions are being shared appropriately in a timely manner. Therefore, we recognize the need tofairly, equally, accurately, and quickly provide the investors with important company information that influences
investment decisions.
In the case of mandatory disclosure materials, such as annual securities
reports, quarterly reports and material facts or other company information,
Hirata Corporation discloses the contents thereof correctly.
■ Holding information sessions for investors
With a purpose of publicizing Hirata Corporation and gaining investors, wehold company information sessions and financial results briefing for institutional
investors, analysts, and private investors.
In 2016, we held the sessions in Tokyo, Kumamoto, and Miyagi and had
many participants.

Briefing for Individual Investors

IR Tools
In addition to the financial reports prepared under laws and regulations of financial exchanges, Hirata
Corporation makes an effort for shareholders and investors to deepen their understanding of our businesses by
preparing the following materials on our own.
1.Briefing documents for financial results andquarterly financial results
These documents explain the summary of financial
results in eachterm for an easier
understanding年月期
決算説明資料and are usedas materials
for financial
results briefing
for institutional
investors in the final and second quarter financial
results.

株 主メモおよび 株 主 優 待 制 度

株主メモ（株式のご案内）
事

業

年

度

毎年4月1日から翌年3月31日まで

株 主 確 定 基 準 日

定時株主総会
毎年3月31日
期末配当金
毎年3月31日
中間配当金
毎年9月30日※期末配当のみとさせていただきます。

定 時 株 主 総 会

毎年6月開催

単

元

株

式

数

100株

証

券

コ

ー

ド

6258

上場金融商品取引所

東京証券取引所

株 主 名 簿 管 理 人

東京都千代田区丸の内1丁目4番1号
三井住友信託銀行株式会社

同 事 務 取 扱 場 所〈郵便物送付先〉〒168-0063
東京都杉並区和泉2丁目8番4号
三井住友信託銀行株式会社 証券代行部〈電話照会先〉
0120-782-031（フリーダイヤル）

公

当社のホームページに掲載します。
ただし、
事故その他やむを得ない事由が生じたと
きは、
日本経済新聞に掲載して公告します。

告

方

法

66期

第

Hirata Report
平成28年4月1日～平成29年3月31日

市場第一部【株式に関する住所変更等のお届出およびご照会について】
証券会社に口座を開設されている株主様は、住所変更等のお届出およびご照会は、口座のある証券会社宛にお願いいたします。
証券会社に口座を開設されていない株主様は、上記の電話照会先にご連絡ください。

株主優待制度【対象株主】毎年、3月31日現在の当社株主名簿に記録された当社株式１単元（100株）以上を保有する株主様【優待内容】

1.寄付もしくはクオ・カード

2.熊本城復興城主の特典付与

以下①②のいずれかを選択していただきます。
①熊本城災害復旧支援金として熊本市に3,000円を寄付※名義は「平田機工株式会社(株主寄付口)」となります。

②熊本城災害復旧支援 金（ 6 円 ）付 きクオ･カード
3,000円分※3,000円分全額使用できます。

Ⓒ2010 熊本県くまモン#K1761

希望される株主様に「復興城主」
として以下の特典が付与されます。
①城主証の交付②城主手形の交付③城主手形の提示により、指定の市内観光施設の入場料免除
および協賛店割引等（城彩苑 湧々座2階に設置）④デジタル芳名板への氏名の掲示⑤復興城主限定ブックレットの贈呈(熊本城総合事務所または城彩苑 湧々座にてお渡し)※特典の詳細につきましては、熊本城総合事務所（TEL：096-352-5900）までお問い合わせください。

Ⓒ熊本城総合事務所【贈呈時期】平成29年7月下旬予定。以降、毎年同時期を予定①クオ・カードご希望の株主様へ発送②「復興城主」特典をご希望の株主様へ仮の城主手形を発送。正式な城主証、城主手形は2ヵ月ほど遅れて発送予定です。
●IR情報に関するお問い合わせ先

本社〒861-0198 熊本県熊本市北区植木町一木111番地
TEL.096-272-0555 FAX.096-272-7901

We are diligently engaged in activities that contribute to society in our commitment
to be a company rooted in the local community as a good corporate citizen.
Conclusion of a comprehensive partnershipagreement with Kumamoto University

IR Activity Policy

2. Hirata Report
This report, forshareholders, describes
the business content,
results, plans andtopics for an easier
understanding and isissued and sent by mailafter the disclosure of
the final and second
quarter financial results.

Together with Local Communities

平田機工株式会社
管理本部 経理部 IRグループ IR·広報課
T E L 096-272-5558
FAX 096-272-3618
E-mail hirata_info@hirata.co.jp

3. FACT BOOK
consolidated statement ofleasing for the past five (5)years
These are materials
summarizing the consolidated
financial statements,
consolidated statement ofincome and financial results
index for the past five (5) years
both in Japanese and English.

2017
FACT BOOK

4. General Meeting of Shareholders
These are materials used for explanations
at general meetings of shareholders.
5.“To Our Shareholders andInvestors”on the Hirata
Corporation Website
This page is a collectionof information for ourshareholders and investors
with the intention ofpromoting understanding ofHirata Corporation.

Hirata Corporation concluded a comprehensive partnershipagreement with Kumamoto University in August 2016,
covering the development of human resources and research &development.
Through collaboration with Kumamoto University, we aim to
improve the exchange and integration of human resources andintellectual resources, as well as the creation of local innovation
originating from Kumamoto, thereby aiming to assist regional
revitalization.

Internships
Hirata Corporation offers internships to "experience work," which gives the students opportunities to think "whatit means to have a corporate job," or "how much of their academic knowledge can be applied."
In the summer and winter of 2016, we accepted 37 students in total from technical colleges, universities, andtechnical high schools.
We also have accepted over 300 high school students for a factory tour to help them have a better grasp on
our occupation and select their academic courses efficiently.
■ Students from the technical high school in Kumamoto visited our subsidiary in the United States (HCA)In October 2016, the Hirata Corporation of America (HCA),
our subsidiary in the United States, accepted 10 students fromtechnical high school in Kumamoto as interns and gave them atour of the factory.
This initiative was implemented as part of a program designed
to encourage the cultivation of global human resources, whowill contribute to the development of the industry of Kumamoto
prefecture in the future, and was organized by the Kumamoto
Prefecture Board of Education.
We wish to maintain strong ties with local communities andsociety, so that we can continue to grow together.

Donation to the roadside rest area "Suika no
Sato", located in Ueki-cho, Kumamoto-shi
Hirata Corporation donated the figure of Kumamon and thebench bearing the illustration of Higomaru, while Taihei Technos,
our subsidiary, donated hand dryers in a nursing room for "Suikano Sato", which opened in Ueki-cho, Kita-ku, Kumamoto in
November 2016.

*1 – 5 above can be found on the Hirata Corporation Website.

17

The Global Production Engineering Company

The Global Production Engineering Company

18Corporate Social Responsibility Report
Environmental Report

Environmental
ReportEnvironmental Management
To realize a sustainable society, we areworking hard to protect the environment.

Environmental Policy
We at Hirata establish environmental policies andpromote environmental activities in line with thepolicies.
In FY2016, we revised our policies, aiming to
expand our environmental activities and enhance theirperformance.
In keeping with these policies, we contribute toprotecting the global environment by reducing theenvironmental load of all aspects of our businessactivities, products, and services.
Particulars of Our Environmental Policy

Hirata Corporation contributes to protecting the
global environment by reducing the environmentalload of all aspects of our business activities,
products, and services in order to achieve asustainable society.
（1）Working towards manufacturing products witha reduced environmental load, considering the
product lifecycle throughout its supply chain.
・Promoting energy-saving products
・Promoting recyclable design andmanufacturing of products
・Reducing the amounts of harmful materials
used in our products and using substitutes（2）Abiding by environmental laws, treaties,
requirements and voluntary standards set as
needed.
A lso, developing coordination and cooperative
relations with relevant government agencies
and contributing to the local society.
（3）Striving to improve productivity and conserve
the environment throughout all our businessactivities and production processes, including
sales, design, manufacturing, installation, andafter-sales service.
・Reducing energy usage and the emission ofgreenhouse gases
・Reducing waste and promoting recycle
・Reducing harmful materials and using
substitute article
・Preventing environmental problems andpollution
・Preserving biological diversity（4）Increasing environmental awareness throughimplementing education and publicity
programs.
（5）Reviewing the EMS regularly to enhanceenvironmental performance and striving forcontinuous improvement.

Environmental Goals
Ο : achieved, Δ : nearly achieved, × : unachieved
Categories

Environmental Management System■ Structure of Promotion for Environmental
Management System
Hirata Corporation has built up a structure ofpromotion for the Environmental Management System(EMS) led by top management and environmental
management manager and obtained an international
standard ISO14001 certification at the Kumamoto,
Kanto, and Kansai region production bases.
■ Preparation for and responses to emergencies
Hirata Corporation eliminates any potential
problems from its production activities, products andservices that may result in emergencies and makes
preparations and conducts response training to keep
potential damage to a minimum.
When the Kumamoto earthquakes occurred in
April 2016, the ISO office and an environmental
management representative investigated whether
there was any failure orenvironmental impact
on facilities, including
the hazardous materials
warehouse, LPG tank, andseptic tank.
Though part of the piping
to the groundwater tankand LPG tank was damaged,
Problems with
we immediately carried out
the groundwater tankrepairs and were able tominimize the environmental impact.

Abiding Laws and Regulations andPreventing Pollution
The abiding of environmental laws is examined by
the ISO office and ISO internal audit. We also have
set up voluntary standards on particular matters andenforce the abiding of laws and regulations.
There was no law violation, accident, or claim
against the Hirata Corporation on environmental
matters in FY 2016.
Drainage measurements are conducted yearly toassess the quality of water in our plants and ensure
it meets the requirements standardized by the local
administration and water pollution control laws.

GlobalWarming
Countermeasures

Using theresources
effectively

ChemicalSubstance
Management

The Global Production Engineering Company

Reducing CO2 emissions

More than 3% decrease in CO2 emission incomparison with actual production in 2014

Reducing CO2 emissions Environmentally friendly designs
from producing energy Implementing energy saving designs on thesaving products
products

FY2016 Accomplishments

Evaluation

33% decrease in comparison with actual
production
Significant decrease due to the increase inproduction, in addition to the introductionof energy-saving equipment such as LEDlighting and high-efficiency air conditioners

FY2017 Plans○

Focus efforts on the reduction ofelectricity usage in particular by
the introduction of energy-saving
equipment and reinforcement ofenergy management.

Conducted product assessments anddesigned smaller and lighter products○Continue conducting productassessments○

Investigate and consider recycling
water used in production

Reducing water usage

More than 3% decrease in water usage incomparison with actual production in 2014.

28% decrease in comparison with actual
production
Significant reduction due to theintroduction of the water circulating
system (see page 21) in the Kumamoto
region and the increase in production

Reducing and recycling
industrial wastes

More than 3% decrease in waste incomparison with actual production in 2014

8% increase in comparison with actual
production
Increase in the discharge of wood waste inconnection with the increase in production△

Maintaining the status quo due to thedifficulty of reducing the discharge ofwood waste

Producing smaller,
lighter, and recyclable
products

Environmentally friendly designs
Implementing smaller and lighter designs on
the products

Implemented product assessments anddesigned smaller and lighter products○Continue conducting productassessments

29% increase in comparison with actual
painting production
Significantly below the target due to theincrease in the use of thinners for cleaning
imported parts during the painting
process in the Kumamoto region

×

Promote switching to thinners that
contain fewer substances subject to
the PRTR law△

Promoting the continuation of
investigations on chemical substances
contained in products

Reducing theMore than 3% decrease in PRTR Law
consumption of
Substances usage in comparison with actual
materials subject to thepainting production in 2014
PRTR Law

Implementing the management of chemical
Implemented the investigation on
Managing chemical
substances contained in mass-produced products chemical substances contained in
substances contained in(building and operating an information
products and confirmed the toxicity of
products
management system)
products (see page 22).

Environmental Performance
We are pursuing to reduce the environmental load and achieve our environmental goals by understanding theimpact made by our business activities.
Amount of water resource input (㎥)Total energy
input (Ininput
crude oil equivalent) (kℓ)■ Totalenergy5,000

Energy consumption per unit

0.200
4,205

5,000
4,000
4,000
3,000 2,949
3,000
2,000
2,000
1,000
1,000
0

（kℓ）
0

（kℓ）

0.107
2,949

0.107

3,298

3,364

0.097
3,298

3,364
0.088

0.097

0.088

3,222

3,222
0.080
0.080

0.200
0.150

4,205

0.150
0.085
0.066

0.066

0.085
TargetValue
TargetValue

FY2012FY2013

FY2014FY2015FY2016FY2017FY2012FY2013

FY2014FY2015FY2016FY2017

0.100

0.100
0.050

0.050
0.000

0.000

actualproduction(m3/hundred
Amountof water resource
inputmillion(㎥) yen)
100,000
Amount of water resource input per hundred
million JPY 400.0
94,309actual production (m3/hundred million yen)
82,319400.0
100,000
94,30979,39880,00076,056300.0
68,00582,31979,39880,00076,056300.0
60,000 68,005 222.6
206.6
203.4
200.4
246.9
200.0
222.6
148.9
60,000
206.6
203.4
200.4
40,000 246.9
Target 200.0
148.9 Value
40,000Target 100.0
20,000Value
100.0
20,000
0
0.0

8,000
6,000
6,000
4,000

0.220
6,055
0.220

6,055

0.228
7,788
0.228

7,788

7,947

0.207
7,947

0.207

0.182
7,354

0.182

8,785

0.139

0.139

0

FY2016FY2017FY2012FY2013

FY2014FY2015FY2016FY2017150.0

15,00012,000

150.0
120.0

12,000
9,000
62.9

9,000
6,000

62.9
4,485

6,000
3,000
3,000
0
（kg）
0

（㎥/hundred million yen）

（kg）

120.0
90.0

71.8
6,934
71.8

6,934

4,485

（㎥/hundred million yen）
0.0

0.201

0.201
Target
Value

0.300

1,000 Amount of industrial wastes target substances per
2.0
hundred million JPY actual production (t/hundred million yen)

0.300

1,000
800

0.200

0.200

TargetValue 0.100

800
600
600
400

0.100

400
200

2,000
0

0.000

200
0

（t-CO2）FY2015

actualpaintingofproduction(kg/million
Consumption
PRTR Substances(kg) yen)
15,000
Amount of PRTR Substances per hundred million JPY
actual painting production (kg/million yen)

6,761
45.6
6,761
45.6

8,190
5,809
37.4
5,809

58.9
8,190

58.9

37.4

FY2012FY2013

FY2014FY2015FY2016FY2012FY2013

FY2014FY2015FY2016

44.2

90.0
60.0

60.0
44.2 30.0
TargetValue
30.0
Target 0.0
FY2017Value（kg/million yen）
0.0
FY2017（kg/million yen）

Amount of industrial wastes (t)Amount of industrial wastes target substances per
hundredmillion
JPY actual
production(t/hundred million yen)Amount ofindustrial
wastes
(t)

4,000
2,000

（t-CO2）FY2014■ Consumptionof PRTR
Substances
Amount of PRTR Substances
per hundred
million JPY■ Industrial Wastes

8,785
7,354

FY2013（㎥）

CO2Emissions（t-CO2）
CO2Emission per unit

10,0008,000

FY2012（㎥）■ Amount of CO2 Emissions
10,000 CO2Emissions（t-CO2）
CO2Emission per unit

Consumption of PRTR Substances (kg)■ Amountof resource
waterinput
resources
input
Amount of water
per hundred million
JPY

Energy consumption per unit
Total energy input (In crude oil equivalent) (kℓ)

019Long–term Goals (FY2015-2017)

FY2012FY2013

FY2014FY2015FY2016FY2017FY2012FY2013

FY2014FY2015FY2016FY2017

0.000

（t）
0

（t）

2.0
1.5

671
0.96

0.96
265

265

0.97

0.97
331
331

0.98

1.06

1.06
671

0.95

375
0.98

428
1.06

1.06

0.95
Target
Value

375

428

TargetValue

FY2012FY2013

FY2014FY2015FY2012FY2013

FY2014FY2015FY2016FY2017FY2016FY20171.5
1.0* Actual output is used to calculateenergy use and CO2 emission
per unit.
*Figures for Hirata Corporation on
an unconsolidated basis

1.0
0.5

0.5
0.0

（t/hundred million yen）
0.0

（t/hundred million yen）

The Global Production Engineering Company

20Corporate Social Responsibility Report
Environmental Report

Environmental Report

Environmental Conservation in Business Activities

We are proactive in measuring and reducing the environmental load throughout
the product lifecycle in design and development, procurement, production, etc.

Environmental loads in 2016 are as follows.

Hirata Corporation Business Activities● Energy
Electricity…… 14,896thousand kWh
LPG………………………………… 94t
Gasoline… ……………………… 6t
Kerosene………………………… 37t
Light Oil… …………………… 286t

●Design anddevelopment●WastesIndustrial Wastes…………… 671t
General Wastes… …………… 32t
Valuable Resources………… 770t
●Chemical Substances(Substances for which PRTR Law applies)
Toluene… ………………………5.3t
Xylene… …………………………0.8t
1,2,4-Trimethylbenzene………0.9t
Others… …………………………1.2t●Production
Processing
Coating
Assembly●Chemical Substances
Substances for which PRTR Law applies…… 8.2t

Outputs●Emissions in the Atmosphere
CO2 … ………………… 8,785t-CO2●Procurement● Water Resources
Underground Water…… 83,200㎥
Clean Water… ………… 11,109㎥

Environmental Accounting
The below is a status of environmental preservation cost.
We categorize these into investment and cost concerning the“Environmental Accounting Guidelines”by the
Ministry of the Environment.
(Unit: thousand yen)
Categories

Business Area Cost

Major Activities

Cost for Preventing Pollution- Replacing septic tank

Global Environmental
Protection Cost
Cost of Resource Cycle

Investment

Cost
―

118

- Installing energy-saving equipment

78,83253,879- Introduction of a cooling tower and water
circulation system- Disposal of general and industrial wastes

37,94328,643

Upstream and downstream costs- Investigation of chemical substances
contained in products

―

2,700

Administration Cost

- Maintenance of environmental
management system- Environmental measurement- Environmental education―

31,271Social Activity Cost – Environmental preservation andimprovement- Nature conservation and beautify- Donations to environmental protectiongroups―359

116,775

116,970

Total

Efforts aimed at reducing undergroundwater usage
Kumamoto prefecture, which contains a major portion of our production bases, is agroundwater-rich area but faces the problem of lowering underground water levels.
Hirata Corporation has established the cooling tower in conjunction with the Kumamoto East
Plant expansion, and makes use of cooled water.
The Kumamoto Plant also introduced a circulation system for the cooled water that is used in
the clean room.
To help preserve the shared, underground water resources of the Kumamoto region, we will
make an effort to reduce our underground water usage and protect water quality.

The Global Production Engineering Company

Hirata Corporation conducts a lifecycle evaluation of all products at the design stage, taking environmental issues
into consideration.
Hirata Corporation's products are large and involve many parts. Therefore, their environmental load tends toincrease at each stage from design through to the procurement of materials and parts, manufacturing, transportation,and eventual use by customers.
Pursuant to the product assessment regulations, we are working towards resource savings, energy savings, and the
reduction of waste and emissions at each stage of the product lifecycle, while setting energy conservation and the
production of smaller and lighter products as company-wide environmental targets. These are being addressed by thetechnical division.

Managing Chemical Substances Contained in Products
In order to respond to a chemical substance related laws and regulations in Japan and overseas, including European
RoHS Directive (*1) and REACH Regulations (*2), we will strengthen management of chemical substances contained in
our products.
In FY2016, we conducted an investigation on chemical substances contained in products and mass-produced partsat the request of customers to confirm the status of any chemical substances present.
As part of the promotion of green procurement, we revised the suppliers' environmental management regulations, inwhich the management status of chemical substances contained in products is now provided for.
To reduce the risks posed by chemical substances contained in our products, we will continue to coordinate withour customers and strengthen our management of such substances.
*1 RoHS Directive: Regulations on chemical substances in EU*2 REACH Regulations: Chemical substance management regulations in EU

VOICE

Aim to produce environmentally friendly products by meansof external and internal cooperation
Process Equipment Dept. Equipment Business Div. Kosei Mishima

TOPICS21

We determine the environmental loads caused by products and try to produce
products with reduced environmental load, taking their lifecycle into account.
Environmentally friendly designs

Environmental Load

InputsEnvironmental Consideration for Products

Cooling tower introduced at
the Kumamoto East Plant

In recent years, requests regarding environmentally friendly products have been increasing.
In particular, products must now comply with the laws and regulations of their destinations withregard to energy savings and chemical substance management, for which I feel a deep sense of
responsibility.
When I was appointed to the role of person responsible for managing chemical substances
contained in products and ordered to carry out an investigation of these chemical substances, I was
unsure how to handle this issue as no adequate system or mechanism had yet been developed.
In that case, customers kindly taught me how to proceed with the investigation so that I could learn
about the management of chemical substances contained in products, and determine how best toinvestigate and deal with them.
The development of systems and procedures for the promotion of in-house green procurement, as
well as the cooperation of suppliers who provided us with information on chemical substances contained in parts and materials,
enabled me to perform the management of chemical substances contained in products.
With the reinforcement of laws and regulations, the management of chemical substances contained in products will become
increasingly important.
Hirata Corporation's environmental targets include the design of smaller and lighter products. As products get smaller, we also
use less chemical substances.
As a designer of products, I would like to contribute to global environmental protection by recognizing the importance ofminimizing the environmental load at the design stage.

The Global Production Engineering Company

22