Corporate Social Responsibility Report 2015

The Global Production Engineering Company

The Global Production Engineering Company

CSR Report 2015

Hirata Corporation

Corporate Social Responsibility Report

This printed matter uses vegetableoil-based ink, in consideration of
the environment.

Universally designed fonts areused to ensure legibility andreader-friendly reports.

CSR1308-E1508NI03

Hirata Corporation

Corporate Social Responsibility Report

Presidentʼs Message
Preface

operational trial, production establishment, andexceptional company which contributes tocooperation of sales and production in Japan,

continues to pursue growth under a relationshipmaintenance/support system. This is owed to theof mutual trust.

society alongside our stakeholders.

North America, Asia, and Europe.

employees to ensure satisfaction by developing

compiled by Hirata Corporation including ourand global network, we demonstrate ourfor opportunity. Hirata Corporation will relay

Engineering, Manufacturing, and Support, swiftly

problems and regional contribution to promoting

philosophy.

customers.

society through sound and honest businesschallenged the future with cutting-edge

in all parts of the word, we provide systemsof society by providing production systems forpractical challenges focusing on safer standard

industry such as automobile, semiconductor, andcontinuation of large facilities.

Hirata Corporation strives to become an

Please read the issue of our 2015 CSR report

Based on our integrated production system

Creating a friendly work environment for oura variety of human resources and provisions

technology and efforts towards society.

comprehensive strength through Production

corporate responsibility about environmental

Customer trust is the basis of our management

and ﬂexibly responding to the demands of ourour CSR in order to realize a rich and comfortable

Since 1951, Hirata Corporation has always

By observing consumer production philosophy

activities.

technology and contributed to the development

suitable for local labor practices, customs, andConclusion

the world's top manufacturers in various fields of

to maintain the trust of our customers andconsolidated net sales of 52.1 billion Yen in

consumer electronics.

We focus our business operations based on

the following management philosophies: "FullFor a prospering, comfortable society

Through fair and honest business practice

Hirata Corporation attained a record

2014. We sincerely thank our stakeholders fortheir support.

Due to this achievement, we have formulated

a new mid-term business plan scheduled to be

utilization of individual potential", "Challenge

which includes our compliances and disclosure

implemented in 2015.

"Open doors to creative life", "Contribute to

Corporation has built a strong trust relationship- Win the race across the globe -”, we aim to(employees), business partners (suppliers),sustainable growth.

technological innovation", "Respect humanity",of information in a prompt manner, Hirata

society", and "Ensure customer success".

with not only our customers, but all stakeholders

manufacturing business structure which opens

stockholders, investors and local community.

proposal and design, parts processing, assembly,

be an important public entity of society which

Hirata Corporation creates an integrated

the doors for development, new project

We believe it is our company responsibility toWith our slogan,“One Hirata For Next Stage

continuously improve our corporate values andWe appreciate your continued support for andcooperation in our endeavors.

Editorial policy
With a view to widely informing of the business activities of Hirata Corporation and therelationships with our stakeholders, we hereby issue the CSR Report 2015.
By closer communications with stakeholders through the Report, we will improve our activity
level. We truly appreciate your direct opinions and comments.

President

Yuichiro Hirata

Scope of Report
Period covered:Fiscal Year 2014 (from April 1, 2014 to March 31, 2015)
Subject Organization:Hirata Corporation, non-consolidated (consolidated results are added to the changes in business results)
Published:August 2015 Next scheduled report: August 2016
Reference Guidelines:GRI“Sustainability Reporting Guidelines 3.1”
The Ministry of the Environment,“Environmental Report Guidelines (2012 Ed.)”
Contact:Quality Control Department
TEL: 81-96-272-3277 FAX: 81-96-272-3345
Investor Relations & Public Relations TEL: 81-96-272-5558 FAX: 81-96-272-3618
Website http://www.hirata.co.jp

01

The Global Production Engineering Company

Social Report

President’s Message ……… 2
Management
Philosophy, CSR Policy …… 3
Overview of Company
and Business ……………… 3
Products Information …… 4
Topics ……………………… 5

Management
Corporate Governance,
Risk Management ………… 6
Compliance,
Corporate Ethics ………… 7

Together with
Customers ………………… 8Together with
Business Partners ………… 9Together with
Employees ………………… 10
Together with Shareholders
and Investors ……………… 13
Together with
Local Communities ……… 14

Environmental Report
Environmental
Management System …… 15
Consideration for
the Environment
in Business Activities …… 17
Environmental Considerationin Products ………………… 18
The Global Production Engineering Company

02Corporate Social Responsibility ReportManagement
Philos ophy,
CSR Polic y

Hirata Corporation will continue to contributeto sustainable social development under its
management philosophy and CSR Policy inconducting business activities and through theactivities of every employee in mutual support
and cooperation with our many stakeholders.

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

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

Main Product Line Introduction
Company Name
Headquarters

Hirata Corporation
3-9-20 Togoshi, Shinagawa, Tokyo
142-0041 JAPANT E L. 81-3-3786-1226
FAX. 81-3-3786-1264
Representatives Yuichiro Hirata, President
Date Established Dec. 29, 1951
Accounts Closed Mar. 31 (annually)
Employees
Employees Consolidated 1,978
Non-Consolidated
1,265
Capital2,633 million yen
Stock Exchange Listings
Tokyo Securities Exchange
JASDAQ (Code : 6258)
Issued Number of Shares 10,756,090 shares
Number of Shareholders
2,371
Production base Kumamoto prefecture：
Kumamoto Plant
Kumamoto Plant（East Plant）
Kusuno Plant
Shichijo Plant
Tochigi prefecture：
Kanto Plant
Shiga prefecture：
Kansai Plant※As of March 31,2015

1

Through technological innovations, wemanufacture products that contribute tosocial development.
Through ceaseless technological innovation, by
realizing each customer’s desire for quality, safety andproductivity, we will meet the expectations of society.

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 build up a workplace,where employees can feel pride and job satisfaction.

3

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.

Business

We build up appropriate relationships withall stakeholders.
We formulate appropriate relationships based on
mutual trust with all stakeholders, including business
partners and cooperate with each other for sustainablegrowth.

5

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 actively
contribute to society.

Automotive Production
Equipment BusinessWe engage in the manufacturing and sale a wide range of

products and major components such as power transmissions anddrive-train such as the engine and transmission, electronic devices
as controlling computers, automotive electronic components suchas sensors, air compressors for air conditioners, ABS brake modules,
and etc.

Clutch assembly line

Semiconductor Production Equipment BusinessIn the field of the semiconductor related production facility, we manufacture and sell load port which transfers siliconwafers to individual processing devices. Wafer transfer robots for atmospheric and vacuum environment and EFEM
(Equipment Front End Modules) which integrates the load port and wafer tranfer robots.
For FPDs (Flat Panel Displays), we manufacture and sell panel coating device “head coaters,” panel glass cutting

Results

devices and glass laminating devices, etc.

Net sales
Non-consolidated
50,000Non-consolidated

44,14250,00040,00040,00030,000

million of yen

Consolidated

52,14547,622
Consolidated

47,62244,142 38,575

47,12938,57538,14628,16235,01430,00020,00047,12938,14635,01433,718million of yen
52,14538,19738,19733,71828,162Wafer transfer robot

Glass cutting device

20,00010,00010,00000Mar-11Mar-12Mar-13Mar-14Mar-15Mar-11Mar-12Mar-13Mar-14Mar-15

Non-consolidated

403

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

3,500
Non-consolidated

Ordinary
incomeConsolidated

million of yen
million of yen

Consolidated

2,500
3,000

1,500
2,000
1,000
1,500

1,962
1,544 1,554
1,544 1,554

1,658

1,464
1,160

1,658

1,464
725

1,160

500
1,000

394

5000
△259

-500
0
-500

We manufacture and sell production equipment for manufacturers of electronic and electric machinery andequipment, including such home appliances as ﬂat TVs, refrigerators

3,000
3,500

2,000
2,500

Home Appliances and Other Production Equipment

Mar-11Mar-12Mar-11Mar-12

1,962

Our products adapt to automatic assembly systems with various

929

sizes and shapes, including high-speed assembly of small condensers,929

incorporated into electronic components, compressors for725

refrigerators and air conditioners.

394

Mar-13Mar-14Mar-15Mar-13Mar-14Mar-15△259

and vacuum cleaners.

The Global Production Engineering Company

General Meeting of Shareholders
General Meeting of Shareholders

They also adapt to transportation equipment and manufacturing
devices of automotive tires.
Appointment ／ Dismissal
Appointment ／ Dismissal

Home electronics component assembly system
The Global Production Engineering Company

04Corporate Social Responsibility Report

Topic sM a na g ement

We will introduce the main topics forApril 2014 to March 2015.

Corporate Governance，
Risk Management

We continue to enhance our corporate
governance and risk management
structure to maintain trust and meet the
expectation of our stakeholders.
Non-consolidated

35,014Non-consolidated
30,000KOYA Corporation was established on August 7,
2014, in the Koshi, Kumamoto Prefecture, for theservice research, development, manufacture, andsales.
KOYA Corporation is a unique company capableof integrated manufacturing from the ITO substratepale of organic EL in Japan and develops its
business for the growth of organic EL lighting - thenext generation

We were recognized as an excellent
supplier from Dyson LTD.
Hirata Corporation was granted as an excellent
supplier from Dyson LTD., in Singapore on June 11,
2014.
Dyson LTD. has held supplier meeting since2013. This year, 4 companies (including Hirata Co
rporation) were commended and recognized amongst the world as a large contributor to Dyson's business.
We are the only company to provi
de production equipment for Dyson
LTD. We strive to manufacture andof lighting.

meet the customer expectations forthe future.

40,000

Corporate Governance Framework

38,146

Consolidated

38,19752,14547,62244,142

10,00047,12938,57538,14635,01438,19733,7180

Mar-11

30,000Mar-12

Non-consolidated

20,000

million of yen

33,71828,16250,000We have founded an affiliatedcompany, KOYA, which manufacturesand sells organic EL-related products.

47,12938,57520,00052,14547,62244,14240,000

million of yen

Consolidated

50,000Mar-13Mar-14

28,162Mar-15

million of yen

Consolidated

3,500

Hirata Corporation has built up a corporate governance system through its board of directors, its supreme
3,000

10,000

2,500

1,962

2,000

decision-making authority, and the board of auditors, which audits the appropriateness of the status of execution
0

1,544 1,554

1,500

Mar-111,000

of duties by directors and the following institutions as well.

1,464

Mar-12
1,160

1,658

Mar-13Mar-14Mar-15

929

725

500

394

0

Non-consolidated

million of yen

Consolidated
△259

-500

The Internal Audit Department, which was established as a department directly reporting to the President,
Mar-11

3,500

Mar-12Mar-13Mar-14Mar-153,000

conducts audits of the Business and Administration Divisions

2,500

1,544 1,554

1,500

1,658

1,464

Appointment／ Dismissal
1,160

1,000

Hirata Corporation has accounting audits performed under

0

Audit

President
Mar-11
Directors

important accounting matters as needed.

Corporate
lawyers andothers

For important matters of compliance, the Company consultswith legal advisers as appropriate to receive useful advice.

Mar-12

Supervision

Appointment／ Dismissal

ReportMar-13

ReportMar-14Mar-15Collaboration／ Cooperation

Audit

Collaboration／ Cooperation

Audit

Internal audit Dept.

Appointment ／ Dismissal

Collaboration ／ Cooperation

Audit
General Meetingof Shareholders

ExecutiveoﬃcersAppointment／ Dismissal
Directors and Executive oﬃcers

Furthermore, the Company has introduced a management

ReportBoard of Company auditors△259

Indication

Advice／Supervision

929

394

-500

advice on proper accounting methods upon consultation on

Appointment ／ Dismissal

725

500
Board
of directors

an audit engagement with an audit corporation and receives

Appointment ／ Dismissal

1,962

General Meeting of Shareholders

2,000

in collaboration and cooperation with auditors.

Executive oﬃcers

Independent
publicaccounting
Appointment／ Dismissal
Firm

Board of directors

ReportOperational Dept. ／ Administration Dept.

meeting and executive officer system. Executive officers

Audit

President

Board of Company auditors

Collaboration／ Cooperation

Directors
promptly and precisely carry out each responsibility and participate in discussions
related to the importance ofbusiness during management meetings.

We received the Japan Machinery
Federation Chairman's Award
conjointly with Sakura Finetek Japan
Co., LTD.
"Tissue-Tek Smart Section" automated continuous
slicer for preparing pathological specimen which
designs were contracted and manufactured with
Sakura Finetek Japan Co., LTD., received the "Japan
Machinery Federation Chairman's Award" on October
15, 2014. The award was conjointly received with
Sakura Finetek Japan Co., LTD. as the "6th Robot
Award" sponsored by Ministry of Economy and theJapan Machinery Federation.

We started development and sales ofa form recognition round chamferingsystem for large-scale steel plate.
Hirata Corporation developed an automated roundchamfering system with a readout feature whichanalyzes the form of large-scale steel plates andbegun sales in October 2014. The product's mainfunctions and features are as follows:
1. Teachingless:Automated readout of steel plateforms via vision systems.
2. Perfect Automation:This enables the roundchamfering of both sides inthe same direction without
the need to reverse the steel
plate.
3. Burden Release:Decreases workload, cost, andoccupational hazards.

Advice／Supervision

BCP（Business Continuity Plan）

Indication
Occurrence of emergency
Collaboration
Report／ Cooperation

Supervision

Audit

Audit

Initial response, BCP operations

From the day
Appointment
Reportof occurrence／ Dismissal
Corporate
lawyers andothersInternal audit Dept.

Establishment a task force, Conﬁrm conditions of damage and personnel’s safety

Collaboration ／ Cooperation

Audit

Contact customers, suppliers and all persons concerned

Independent
publicaccounting
Firm

Activities tocontribute to
the aﬀected
region／area

Draft a policy for continued operation of core business,
Executive
establish the oﬃcers
systemTo avoid unanticipated disasters and problems from hindering uninterrupted
business
we consider
From a few and Executive
Directors
oﬃcers operation,
Executive oﬃcers
days to a few Support clients and partner companies Support employees and business resources Handle ﬁnancial liabilities
months after Adjust and restore the deals Administer emergency aid and restoration Ensure, pay and ﬁnance a working capitaloccurrence
all possible risks in advance, and take prevention, protection and reduction
measures into consideration to ensure

Operational Dept. ／ Administration Dept.

Restorationensuring
and reconstruction
continued business operation, giving our customers piece of mind against risks whilethat business returns

to normal within the shortest time possible after a disaster.
・In the unlikely event that our company itself is the victim of a disaster, we make re-establishment of our business a
経営者

priority to ensure that we are there to meet the needs of ourcustomers and/or stricken areas that require assistance.
・In advance of any possible phenomena (disasters,
unanticipated problems), we implement precautions and

MR会議

基準
力量
（全社）
品質会議
Establishment a （人材育成）
task force, Conﬁrm conditions of damage and personnel’s safety
（HS）

品質保証

may exert a large effect on core business operations, as wellas continually practice disaster prevention and BCP training.
employees, implementing a clearly defined plan of action

ISO監査チーム

Initial response, BCP operations

From the dayof occurrence

restoration plans taking into account any possible risks which・During normal hours, we provide training for our

品質管理責任者

Occurrence of emergency

手順（ISO9001）（各部門）
Contact customers, suppliers andall persons（各部門）concerned （各部門）
品質会議
品質会議
品質会議

（各部門）
品質会議

Draft a policy for continued operation of core business,
establish the system

Activities tocontribute to
the aﬀected
region／area

From a few
days to a few Support clients and partner companies Support employees and business resources Handle ﬁnancial liabilities
months after Adjust and restore the deals Administer emergency aid and restoration Ensure, pay and ﬁnance a working capitaloccurrence

Restoration and reconstruction

for emergencies and disasters.

We have introduced a safety verification system to swiftly and efficiently ensure the welfare of our employees indisasters by performing emergency drills regulary.
※ "Tissue-Tek Smart Section" is a
registered trademark of Sakura
Finetek Japan Co., LTD.

Information Security

経営者
品質管理責任者

手順（ISO9001）

ISO監査チーム

MR会議

Hirata Corporation established a management system focusing on an information
security
committee which strives
基準
力量
（HS）

（全社）
品質会議

（人材育成）

to prevent the exposure of confidential information. We can protect informational assets and devices from threatsby constantly improving our information security management regulations to deviate
from leaks,
threats,
damages.
品質保証
（各部門）
（各部門）
（各部門）
（各部門）
品質会議

05

The Global Production Engineering Company

品質会議

品質会議

The Global Production Engineering Company

品質会議

06

Corporate Social Responsibility ReportManagement

Compliance, Corporate Ethics

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

Together with Customers
S o c i a l Rep o r tCompliance 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.

Code of Conduct

Based on our business principles, we at Hirata are fully aware of our mission and role as a corporate entity with respect to ourvalued customers, shareholders, business partners, employees as well as the members of our local community and, in order to makea 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 ethics.
2. Engaging in fair and just business
We at Hirata, as a company that develops and provides
optimal products and systems that benefit society, shall prioritize
customer satisfaction and work to build fair, just and transparent
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 relevantlaws and statutes.
We shall take all the proper precautions whenever handling nondisclosed corporate information (insider information) making
sure there is no profit-sharing or favors bestowed to individuals
involved in the transaction of equity and other securities basedon 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,
character and individuality of each and every single individualand make for a happy workplace for all.
7. Controlling conﬁdential information
We at Hirata are devoted to the strict management of not
only our valued customers' personal information but also ourown secret corporate information and employees' confidential
data, which we vow never to illegally or unfairly disclose or leakeither during their employment or after their departure fromthis company.
8. Duty of practice and accountability
We at Hirata shall promptly report any and all infractions tothis Code of Conduct in the event of their detection during thecourse of the execution of business in accordance to the same.
Should such a report be issued, the employee or employees inquestion shall be protected from liability.

Compliance Education
Hirata Corporation provides various opportunities for employee education in order to thoroughly comply with related
laws in Japan and overseas, various regulations of the Company and any other norms socially required for compliance.
In addition to providing basic education on the necessity of compliance and the concept to all employees, theCompany established programs by managerial ladder and department on such subjects as the Subcontract Law,
corruption prevention, export control, confidential management, prevention of insider trading, labor management,
occupational safety and environmental protection, etc.,.
Matters concerning the occurrence of compliance, we are trained to relate with the individual and strive for the
improvement of their compliance awareness and reoccurrence prevention.

Helpline
Hirata Corporation established an external reporting contact (Hirata Helpline) in May 2008 under the“Codeof Conduct”for employees to report problems which might violate laws and internal regulations and to address
with the potential risks which violate laws and internal regulations as early as possible.

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

Quality Assurance
Hirata Corporation has constructed a framework to promote the Quality Management System (QMS). We pursue
the QMS to embark on quality assurance activities on a sectorial basis under the responsibility and authority of aquality control manager. Management Review (MR) are held twice a year to analyze the status of operation andreview the QMS to make company-wide quality goals and improvements.
We strive for continuous improvement and quality progress through target management.

Customer Satisfaction

Product
Evaluation
Corporate
Evaluation
3.62
Corporate

department, technical department and production department for each

3.51

Evaluation 3.62

Hirata Corporation collects customer feedback and demands to foster
the improvement of products and increase customer satisfaction on sales

Product
Evaluation

3.51

3.42

Service
Service
Evaluation

3.66

division.

3.62

3.42

Evaluation

3.66

Evaluation of
person in charge
Evaluation of(Sales)personin charge
3.62(Sales)3.56

Evaluation of
Evaluationofin charge
3.59 person
person in charge
3.59(Technology)

3.56(Technology)

TechnologyofTechnologyEvaluation
Evaluation of
Evaluation
personin charge
Evaluation
personin charge(Manufacture)(Manufacture)

Furthermore, customer satisfaction surveys were distributed
simultaneously to all companies in 2014.
We will make continuous efforts to improve our business and further

Continual
Use Use No Opinion
Continual
No Opinion

increase customer satisfaction for the future.

76％ 76％0％0％50％ 50％

Avoid
Use
Avoid
Use
21％3％3％
21％
100％
100％

2014 Customer Satisfaction Survey Results
Average Weighed Score (1-5 Scale)

VOICE

Aim to increase the satisfaction of customers
Bio Device Gr. Equipment Dept. 1
Equipment Business Div. Toshiya Tagawa
Interviews regarding customer satisfaction improvements with the personnel incharge of Bio Device Gr. Equipment Dept. 1, who received the Robot Award andJapan Machinery Federation Chairman's Award conjointly with Sakura Finetek
Japan Co.,Ltd.
Development of automation equipment in substituteto human labor has been a long-standing issue for thecustomer. The customer was searching a partner who
was consistently capable of designing, manufacturing anddevelopment of software.
We started a partner relationship with Sakura Finetek
Japan Co,.LTD thanks to our performances in various fields
and industries with our ISO13485 certification (international
standard of medical devices).
Our challenge was to automate the essence andknow-how derived from the customers' experience andperformance plus lower costs for its mass production.
We shared a conceptual drawing included with customer

opinions for each detailed process and movementswith 3-dimensional moving images to clearly show thecomplications inside the equipment.
In order to install and transport the product easily in a
hospital, we made a small and ﬂexible structure whichenabled it to change through various settings and fine-tuning.
I was able to participate in the award ceremony because
the customer proposed our joint names. I am sincerely
grateful to the customer for their consideration and prided
that the success met their expectations.
My goal is to manufacture based on the satisfaction of theusers and prove worthy of their trust.

“Hirata Helpline”has a principle of anonymous reporting and a whistle-blower shall not face retaliation due to whistleblowing.

07

The Global Production Engineering Company

The Global Production Engineering Company

08Corporate Social Responsibility ReportSocial ReportSocial Report

Together with Business Partners

Together with Employees

We are working to build cooperative relationships based on trust withour business partners to secure good long-term business partnerships.

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

Suppliers Meeting

Global Human Resources Policies

We held the 2014 Supplier Meeting in Kumamoto City's
Ueki Culture Hall in May 2014 with attendants from 189
suppliers and 129 companies.
We awarded 9 companies with the Excellent SupplierAward and 4 companies with the Highest Revenue
Reward factoring in the quality, cost, and delivery
deadlines for 2013. After the explanation of businesstrend and procurement policy, 2 companies were givena special award for their remarkable performance inoverseas and supply chain at the meeting. In addition,a tour was held of Kumamoto's plan to deepen theunderstanding of Hirata Corporation.

Supplier skill training and seminar course
A welding skill training course was held for our
suppliers three times in August, 2014. While 5 study
meets were held for 17 management staff regarding
coaching, management, and financial affairs with

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 ourcommitment to being a company where employees can act with pride and satisfaction through their work.
1.Based upon our Corporate Philosophy
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,
corporal punishment, 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 definitely do not discriminate against any employee on the basis of nationality, race, religion, age, gender,
physical or mental disability, or other legally protected attributes.
2.We carry out our HR activities in compliance with applicable laws and regulations.
We shall comply with all applicable laws and regulations of each region regarding employees’rights.
The rights of workers to associate freely, join or not join labor unions, seek representation, and join workers
councils in accordance with local laws shall be respected.
3.We aim for a fair, equal and transparent HR system.
The human resource policies have to be reasonable and persuasive to the employees.We shall clearly explain
the contents of the policies to the employees and make it open to the maximum extent.
4. We support professional development.
Based upon our Corporate Philosophy of "Makes the best use of its members”, we shall positively support
for professional development.

Support to Ability Development
Hirata Corporation strives to create a work environment where employees can mature and realize their potential
under our management philosophy, "Full utilization of individual potential".

specialists such as professional coaches, small andmedium enterprise management consultants, and tax
counsellors.These seminars and skill training courses willcontinually be held to build a reliable and collaborate
relations.

With this is mind, we set a basic policy of human affairs where Talent Cultivation is the key to management and aim
to support the advancement of employee capabilities.
We upgraded our professional and subject-based education in addition with our systematic implementation ofprograms of previous stratified curriculums.
Hirata Corporation is a build-to-order company, therefore, it is crucial that the required skills are available for the
success of orders. We aim to continuously augment the abilities of employees through project management training.
Furthermore, to cope with globalization, we are committed to fostering a structure which cultivates talented
individuals who can perform on a global stage and grow alongside employees.

09

VOICE

VOICE

Thank you for your kind consideration.

Project Expansion Utilization

Kouguchi Precision Industry Co., Ltd.

Hironori Kouguchi

Sales Engineering Gr. #1 System Dept.
Kumamoto Business Div. Ryouichi Watanabe

We are a precision cutting company processing
various metals such as iron and aluminum which
has been working with the Hirata Corporation forover 25 years.
I thank Hirata Corporation for the opportunity
to participate in this study meet. Through thiscoaching seminar, I realized that we must be agreat listener to understand a person through theintroduction training provided.
I learned techniques to identify strengths andweaknesses through the visualization of ourmanagement style during the management seminarand understood my company's constitution via
financial analysis from the financial seminar.
These skills are extremely useful towards ourbusiness's success as well as the communication
with employees and negotiation with financial
institutions.
I was impressed by Hirata Corporation's kindconsideration to train suppliers and immediately
wanted to relay my recently acquired knowledge
to all my employees.

The project management (PM) training areconducted with scientific analysis of a problem on awhiteboard never seen before for groups consistingof members from different departments in orderfor them to share common perceptions to prevent
communication error via "Visualization".
Through "Visualization" we were able to sharecommon perception to prevent communicative
error.
We have increasing difficulty managing and

The Global Production Engineering Company

controlling groups for each office and department
during project expansion.
We currently understand, plan, practice,
do progress management and conclude eachproject, that we finally connect it with next
projects after completion.
We can create a more effective business
atmosphere by spreading the importanceand necessities of PM through practice andparticipation of these positions.

The Global Production Engineering Company

10Corporate Social Responsibility ReportSocial ReportSocial Report

Together with Employees

Together with Employees
VOICE

Civil Rights and Diversity

Importance of work environment and human relationshipGreat opportunity to reconsider a life plan

■ Eﬀorts for Re-Employment
Under the“Re-Employment System”established in 2006, the Company enters into re-employment agreements withretired employees so that they can continue to apply 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 andProcurement Div.

considering working days and hours based on the desires of re-employed persons and the content of each business
contract.

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

Based on the Law concerning Stabilization of Employment
our re-employment system, and re-employ those who desire
until 65 years of age.

■ Active Employment of Disabled Persons
Employment rate of disabled for FY2014 was 1.85%,
underrunning the statutory employment rate of 2.0% after
the revision.
We strive to recruit individuals by participating in briefing
sessions hosted by related organizations and acquiring
trainees from vocational schools.

Persons retiredby age limit

Yearof Older Persons as revised in April 2013, we have revised

Persons who
sought reemployment

Re-employedpersons

2010

7

5

5

2011

16

11

11

2012

25

18

18

2013

23

17

17

2014

11

9

9

Changes in Employment Ratio of Disabled Persons (%)

2.50
2.00

1.88％

1.99％

1.90％ 2.02％

1.85％

1.50

Legal
employment
ratio

0.50

When I gave birth to my first son, I was able to take childcare leave for a year and 3 months which
included 6 months of a waiting period for nursery school. Currently, I am utilizing shorter working hoursystem.
Women normally return to their respective company after several months of giving birth in China andchildcare becomes the responsibility of the grandparent. I grew accustomed to the childcare leave andnursery school system since I was raised in Japan, however, my Chinese acquaintances were quite
surprised by this idea. I hesitated enrolling my crying child to school at first, but I realized it was important to balance work andhuman relationships opposed to focusing solely on childcare.
I noticed trivial matters such as room temperature and impacts of standing and sitting would affect my condition when I was
pregnant.
I wish to return the favor to my surrounding colleagues who aided me during this period. During childcare leave, I was able toconsiderably redefine my life goals. I think it was a great time and opportunity.
Another View
As a male employee who took childcare leave, it was an uncommon yet new experience to see my child grow when I took
a yearlong childcare leave. Even with more supporting system, I had assumed that men were unable to utilize.
We plan to further support and encourage fathers to utilize child care leave.

2.0％

1.00
（％）

Gao Xue

2010

2011

2012

2013

2014（Year）

1.8％■ Harassment Preventive Measures
Power and sexual harassment workshops based on past cases were held in 2014 for managerial positions and higher
officials. We aim to ensure that employees are aware of the severe problems caused by power and sexual harassmentand must be prevented. The workshop will be held regularly to improve the work environment and create a positive

Occupational Safety and Health
Hirata Corporation motto, "Zero accidents in all employee participation".
Hirata Corporation holds a safety and health committee at each plant and acompany-wide safety and health committee, a supervisory committee, every

atmosphere.

month to promote organizational safety and health activities. The companywide health and safety committee creates plans for constant improvementwith the PDCA system (Plan Do Check Act). Each plant's health and safety
from the company-wide meet to employees. We strive to ensure the safetyof Hirata Corporation factory workers with risk assessment and hazard

Hirata Corporation makes every effort to improve the work environment and strongly believes in a "work-life balance"
ensuring that employees can use their time freely by offering the following:

In regards to childcare leave, we have established a compatible system where an increase of employees has returned toof consecutive leave when using annual paid vacation days. By
implementing a work-life balance, we hope efficacy througha rejuvenated mind and body. The new implementation
resulted in a utilization rate of 80%. This system will continue
for 2015 with an overall goal of 100%.

11

The Global Production Engineering Company

Number of employees who took childcare
and nursing care leave, etc.

(Unit: person)

Year

2012

2013

2014

Childcare leave Femaleof absence
Male

6

6

15

0

1

1

Childcare
Femaleshorter working
Male
hours

13

8

10

0

0

0

Female

1

0

1

Male

0

0

0

Nursing careleave

All executives including the CEO makes safety patrols in the plant duringawareness for employee safety. There was one case of an occupation2 ) Overtime reduction

In 2014, we have introduce a new system called "Good Lifeprediction training during a morning meeting of each job site.
"National Safety Week" every July and creates an environment which raises

1) Fully providing childcare leave, maternity leave, and shorter working hours for childcare.

Leave" which enables employees to take three or more days

Training sessions
for AED and CPR
implementation.

committee revises the results of patrols and relays all information discussed

Work-Life Balancenormal work.

TOPICS

accident which occurred in 2014. We strive for a zero incident fiscal year for2015.

■ Implementation of Safety and Health Education

We provide courses, appropriate education, and skill training forhazardous operations. Health and safety education is a must for employees
and contractors working in our plants.
Handbooks are distributed with the rules regarding Hirata Corporation's
health and safety.

To prepare live saving measuresfor cardiac arrest due to myocardial
infarction (heart attack), we holdseminars for AED usage and CRP
training. All Hirata Corporation plants
are equipped with an AED.

The Global Production Engineering Company

12Corporate Social Responsibility ReportSocial ReportSocial Report

Together with Shareholders and Investors

Together with Local Communities

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

We are diligently engaged in activities that contribute to society in ourcommitment to be a company rooted in the local community as a good
corporate citizen.

IR Activities

Donations and Cooperation

Hirata Corporation believes it is the assumption of impartial and fair

We have supported the yearly local environmental photo

price formation of shares that information on investment decisions shall becontest, " Watashi no machi no ○ & × ・Kumamoto" tosupplied properly in a timely manner. We recognize it's our responsibility

promote environmental awareness since 2008.

to supply important corporate information which constitutes the basis forinvestment decision-making for the many market investor participants in afair, equal, accurate and swift manner.
For such institutional disclosure materials as financial reports andWe have contributed in environmental preservation
Financial results briefing for institutional
investors.

activities byfundraising for the
restoration of Asoquarterly reports, we have improved our organization system to make correct and timely disclosure of theGrasslands which

details of the Company and for material facts and any other important corporate information,

was certified by

we disclose theinformation promptly after making a formal decision and the occurrence of the facts.
For major IR activities, we hold closing explanation and second quarter closing explanation meetings for
institutional investors and also individual consultations with institutional investors and analysts.

Global Geoparks
in September
2014.

Career-related Lectures / Experience Learning
As part of our community-based social contributions,
we have been continuously engaged in activities
visiting junior high schools in neighborhoods togive career-related lectures and invite students
to the company and provide experience learning
opportunities.
In July of 2014, we discussed Hirata Corporation's
important points and job descriptions with students
in the eighth grade of Kumamoto's Municipal Ueki
Kita Middle School.
In addition, we provided experiential learning
for ten students in the ninth grade of Kumamoto
Municipal Kanan Middle School at our Kumamoto

Internship

IR Tools

Hirata Corporation provides internships of a“working

In addition to financial reports, announcements on closings, which are prepared under laws and regulations offinancial instruments exchanges, Hirata Corporation makes every possible effort for shareholders and investors
to deepen their understanding of the business of Hirata Corporation by independently preparing the following
materials.
① Closing explanation materials, quarterly closing③ Fact Book
These are materials summarizing

explanation materials

the consolidated financial

These are thematerials explaining

statements, consolidated statement

the summary of theof income and closing index for theclosing of a term inpast five (5) years both in Japaneseeasy to understandand English.

language and are usedas materials for closing④ Materials for explanations at

explanation meetings for institutional investors for thegeneral meetings of shareholders

final closing and second quarter.

This report, for⑤“To our Shareholders andshareholders, describes

Investors”on the Hirata

the business content,

Corporation website

results, plans and topics

This page collects information forin easy to understandour shareholders and investors andand is issued and sent

posts the information about shares,

by mail after disclosurecompany profile information forof the final closing andindividual investors in addition tosecond quarter closing.

the above materials. We intend topromote understanding of Hirata Corporation.
Number 1 and 3 are posted on the Hirata Corporation's website.

13

The Global Production Engineering Company

opportunities for students to think“What it means towork at a company”or“How much what I have learned
can be applied.”
In 2014 during summer and winter season, we
accepted nine students in total from technical colleges,

Students were able to observe SCARA-type robotic
teachings and solar panels through interacting withmaterials and 3D videos after being informed with thebusiness, product, and history of Hirata Corporation.
Student participants were impressed by Hirata Corporation's
global expansion, but were more eager to see andtouch industrial robots they were unable to interact
with earlier.

universities and technical high schools.
Also, for high school students, we accept a few
hundred of them for plant visits in order to help themdevelop proper views about occupations and selecttheir courses efficiently.
To promote global development, we have establishedstudent internships and plant field trips for oversea
affiliates in Taiwan.

Students who ask about Hirata
Corporation's jobs

Students who operate therobot with enthusiasm

These are materials used for explanations at general
meetings of shareholders.

② Hirata Reportexperience type,”by which the Company provides

headquarters and plant last November.

VOICE

Students' feedback● "The Kipling Method" & "HO-REN-SO"● Robotic Evolution Amazement

Today, I learned about work necessities.
The explanation of "The Kipling Method" and "HO-REN-SO"
was easy to understand and remember.

I learned that robots have a function to prevent damages tosurrounding objects by early detection. I think that robots are
evolving
I wish to have a job which involves robotics and machinery in
the future, so this opportunity was a great experience for me.

reporting, sharing and consulting technique
A student in the eighth grade of Kumamoto Ueki
Middle School (Occupation lecture)

A student in the ninth grade of Kumamoto Kanan Middle
School (Learning experience)

The Global Production Engineering Company

14Corporate Social Responsibility Report

Environmental
ReportEnvironmental
Management System

Towards the realization of a sustainable
society, we have developed theEnvironmental Management System（EMS）
to protect the environment.

Environmental Report

Environmental Targets○・・・achieved, △・・・nearly achieved, ×・・・ unachieved

Environmental Policy
We at Hirata Corporation establish environmental
policies and promote environmental activities inline with the policies. We contribute to global
environmental protection by reducing environmentalload on our business activities, products and services.
1. ISO (9001/14001) Basic Policy(1) Putting customers first, and providing the high-quality
products that meet customer satisfaction.
(2) Producing high value-added and environmentally-friendly
original products through efforts in technical innovationand improvement.
(3) Upholding laws and regulations and making productsthat are safe and easy to use.
(4) Working towards the prevention of pollution andthe enhancement of quality through the continuous
improvement of our EMS/QMS effectiveness.
E M S：E n v i r o n m e n t a l M a n a g e m e n t S y s t e m
Q M S：Q u a l i t y M a n a g e m e n t S y s t e m

2. Particulars of our environmental policy(1) Working towards the manufacturing of products
considering the product life cycle through implementing
production engineering.
・Promoting energy-saving products
・Promoting recyclable design and manufacturing ofproducts
・Reduction or substitute of harmful materials used in
products(2) Abiding by environmental laws, treaties, requirements
and voluntary standards set as needed. Also, developing
coordination and cooperative relations with relevant
government agencies and contributing to the local
society.
(3) In order to construct sustainable society, striving
to conserve the environment technologically andeconomically in the business activity and the all
production process including sales, designing,
manufacturing, installing and service after the sales.
・Reducing energy usage
・Reducing waste and promoting recycle
・Reduction or substitute of harmful materials
・Preventing environmental problems and pollution(4) Increasing environmental awareness throughimplementing education and publicity programs.
(5) Reviewing EMS regularly for continuous improvement.

Environmental Management System

Item

Mid and long-term targets (2012 ～ 2014)○

Product assessments willcontinue to be conducted.

△

We aim to enhanceorganization in theexamination of productchemicals substances
including the supplierchain.

Reduction of 17% of actual
production amount ratios○

Promote replacement ofmaterials subject to the
PRTR Law.

Reduction of more than 5% of actual
Reduction of 22% of actual
Reduction of waterproduction amount ratios to the waterproduction amount ratios
consumption
consumption amount in 2009○

We examine the recycling
water used in the
manufacturing process.

Implementation of environmentallyfriendly designs

Promotionof Green
Procurement

Implementation of management ofchemical substances contained in
products

Reductions in
consumption
amounts ofmaterials subject
to the PRTR Law

Reduction of more than 10% of actual
production amount ratios to theconsumption amount of materials
subject to the PRTR Law in 2009

■ Environmental Management System Promotion
Hirata Corporation has built up the Environmental
Management System (EMS) Promotion Organization
led by management and the environmental

Countermeasures forchemical substances,hazardous materials

management manager, and obtained international
standard ISO14001 certification at the Kumamoto,
Kanto and Kansai plants.
■ Internal Audit

Water resource
countermeasures

Our auditing team, consisting of section chiefs
and higher officials, conducts yearly internal
audits. Auditors are trained to prioritize certain

Global warming
countermeasuresaspects during inspections and focus not only
on the indication, but recommend improvement
in conducting effective investigations, promoting
management system quality.

Legal Compliance and Pollution Control
In 2014, we amended issues corresponding to
officially registering facilities to meet the specifications

Waste
countermeasures

it meets the requirements standardized by the local
administration and water pollution control laws.

Reduction of CO2
emissions

Reduction of more than 5% of actual
production amount ratios to CO2emissions in 2009

Real output 5% increase
Deterioration by change ingreenhouse gas emission factor△

Reduction ofindustrial waste
amounts

Reduction of more than 5% of actual
production amount ratios to waste
amounts in 2009

Reduction of 29% of actual
production amount ratios.

○■ Amount of water resource input

Total energy input （In crude oil equivalent）(kℓ)
120,000
0.200
100,000
0.125
3,000

3,180

2,636

2,000

3,532
2,949
0.089

0.090

0.107

3,298
0.097

3,364
0.088

0

0.100

0.050

2009

2010

2011

2012

2013

FY20140.000

Routine inspection to waste treatment contractor
Visits to our contracted waste treatment company are regularly made to ensure that the waste isproperly disposed of. We make efforts to recycle plastic waste due to its high emission.

8,000

4,000

The Global Production Engineering Company

We endorse recycling
waste plastic.

0.196
4,128

5,747

6,055

0.228

0.220

4,845
0.137

7,947

0.300
0.250

0.207
0.200

0.100
0.050

1,000
2009

2010

55,529 220.5

246.9
68,005

191.2

76,056222.6

79,398
206.6

300.0

200.0

2011

2012

2013

25.0

21.2

4,470

4,000

20.3

19.8
15.0

8,000
6,000

20,0000

12,00010,000

100.0

7,840

5,330

16.3
6,934

17.6

20.0

6,761

15.0

4,485

10.0
5.0

2,000
2009

2010

2011

2012

2013

FY20140.0（㎥／hundred million yen）

Amount of industrial wastes（t）
Amount of industrial wastes target substances per hundred
million JPY actual production（t／hundred million yen）
1,000
2.0
800

1.4

600

FY2014

0.000

1.5

1.2
1.1

0.150

0.145

2,000

0

78,256 75,863

14,000Consumption of PRTR Substances (kg)Amount of PRTR Law target substances per hundred million JPY
actual production（kg／hundred million yen）
30.0

0
（kg）

2009

2010

2011

2012

2013

FY20140.0（kg／hundred million yen）

■ Industrial Wastes

3,000（t-CO2）

15

7,788

7,000

5,000

60,000（㎥）■ Amount of CO2 Emissions

6,000

263.2

80,00040,000

1,000

（kℓ）

0.150

CO2 Emissions（t-CO2）
CO2 Emissions intensity

TOPICS

Focus efforts on reductionof electricity usage inparticular by introductionof energy-saving equipment
and reinforcement ofenergy management.

■ Consumption of PRTR Substances

Amount of water resource input（㎥）Amount of water resource input per hundred million JPY
actual production（㎥／hundred million yen）
400.0

Basic unit for energy

4,000

assess the quality of water in our plants and ensure○■ Total energy input

able to take preventative measures by enhancing

Drainage measurements are conducted yearly to

Reduction of 30% of actual
production amount ratios

We hope to reduce the burden on the environment and achieve our goal by grasping the impact made by our

5,000

assessment regulations.

Reduction of more than 5% of actual
production amount ratios to energy
inputs in 2009business activities.

By registering with this administration, we are
our awareness of law changes and complying with

Reduction ofenergy input

Environmental Performanceof the Anti-water Pollution Act for plants located in
Kumamoto, East Kumamoto, and Kansai.

Evaluation Activity Plan for 2015

Conducting product assessments
and reduced number ofcomponents, power consumption,
hazardous materials and waste,etc.
Chemical substances in our
products are thoroughly
examined. (Refer to the "Response
to Management of Chemical
Substances Contained in Products"
section for more details.)

Supplying products that reduce
environmental loads

Organization

Results of 2014

436

400

1.0

1.0

422

285

265

331

1.0

0

2009

2010

2011

2012

1.0

375
0.5

200

（t）

* Actual production amounts used
for calculation of energy use andCO2 emission intensity.

2013

FY20140.0（t/hundred million yen）

The Global Production Engineering Company

16Corporate Social Responsibility Report
Environmental Report

Consideration for the Environment in Business Activities

Environmental Report

Environmental Consideration in Products

We are actively working to determine and reduce the environmentalloads for the entire lifecycle of products including design anddevelopment, procurement and production.

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

Environmental loads

Environmentally-Friendly Products

Environmental loads in 2014 are as follows.

Input■ Eco Electric Series

Business Activities of Hirata Corporation●Energy
Electricity ……12,444 thousand kWh
LPG ……………………………… 79t
Gasoline ……………………… 3t
Kerosene ……………………… 53t
Light Oil ……………………… 62t●Design anddevelopment●Emissions in Air
CO2 ………………… 7,947t-CO2●WasteIndustrial waste …………… 375t
General waste ……………… 26t
Valuable waste …………… 724t

●Procurement●Water Resources
Underground Water … 67,746㎥
Clean Water ………… 11,652㎥●Chemical Substances(PRTR Law target substances)
Toluene ………………………3.8t
Xylene …………………………1.0t
Other ……………………………1.9t●Production
Processing
Coating
Assembly●Chemical Substances
PRTR Law target substances …6.8t

We develop a series of energy saving transportation products which not only regulate the running cost but also

Outputimprove productivity.
We propose eco-friendly manufacturing such as automobiles and household appliances to be used as a series.
＜Features＞①Energy Saving:No power consumption while idling. No need for pneumatic tooling like compressors, andreduces CO2 emission.
②Low cost:Minimize lead time by reducing the number of parts and running at only 24-volt power supply.
③Compatibility:Identical standards to major domestic air device makers. Easily replaceable.
④Safety:Automatch halt via low resistance to reduce risks such as entrapment.

Environmental Accounting
The below is a status of environmental preservation cost.
We categorize these into investment amounts and cost amounts with reference to the“Environmental
Accounting Guidelines”by the Ministry of the Environment.
Item

Conveyor（Transportation）（Unit:thousand of Yen）

Major Activities

Investment
amounts

255-Introduction of energy-saving equipment

1,547

30,022-Disposal of general waste and industrial
waste

―

13,720Administration Cost

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

23,479Social Activity Cost

-Nature protection, clean-up-Donations to environmental protectiongroups

―

66

1,547

67,542Business Area Cost

-Noise prevention

Global Environmental
Protection Cost
Resource Circulation Cost

Total

Eco-electric series ﬁve line-up

Costamounts―

Pollution Prevention Cost

Balance stopper
Small stopper（Suspension of work and pallet）

Turn-lifting module（Work and pallet directional change）

Cylinder（Sliding operation）

Response to Management of Chemical Substances Contained in Products
In order to respond to chemical substance related laws and regulations in Japan and overseas, including

TOPICS

Energy conservation and education of
eco-friendly driving implementations.
Energy consumption is the largest factor in environment burden regarding business activities.
Most employees commute via privately own vehicles which expend an abundance of fuel.
We educated all employees on the importance and various techniques regarding energy
Education in the Kansai plant
conservation and eco-friendly driving in 2014.

17

The Global Production Engineering Company

European RoHS Directive (*1) and REACH Regulations (*2), we promote strengthened management of chemical
substances contained in our products.
In 2014, in the Green Procurement Subcommittee, in-house promotion organization, we shared informationand problems concerning laws and regulations and management situation of chemical substances containedin products. Afterwards, we investigated the chemical substances contained in products in which chemical
substance management is required.
For chemical risk reduction, we will work actively to strengthen the management system, including the supply
chain.
*1 RoHS Directive: Regulations of hazardous materials of EU*2 REACH Regulations: Chemical substance management regulations of EU
The Global Production Engineering Company

18