Corporate Social Responsibility Report 2016

The Global Production Engineering Company

The Global Production Engineering Company

CSR Report 2016

Hirata Corporation

Corporate Social Responsibility Report

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

Recycle aptitude
This publication may berecycled for printing paper.

CSR 1308-E1607NI04

Hirata Corporation

Corporate Social Responsibility Report

Top Message
Prior to the CSR report, we would like tothe cooperation of sales and production in Japan,

express our sympathy to anyone affected by theNorth America, Asia, and Europe.

towards those who have shown warm support

following management philosophies: "Makes the

Kumamoto earthquakes, as well a big gratitude

We focus our business operations based on theas we are mainly based in Kumamoto.

best use of its members", "Challenges technicalIntroduction

door to creative life", "Contributes to the society",

Hirata Corporation strives to become an

exceptional company which contributes toinnovation", "Respects humanity", "Opens theand "Makes our customers successful”.

society alongside our stakeholders.

Efforts for globalization

Hirata Corporation including our technology andtop priorities for the management at Hirata

efforts towards society.

Corporation.

A challenge to develop products that will

2017, along with the support from its affiliation,

Please read our 2016 CSR report compiled byhelp achieve a richer life

Since 1951, Hirata Corporation has always

challenged the future with cutting-edge

The effort for globalization is one of the

In the mid-term management plan for 2015-

Hirata Corporation aims to establish a global
position as a manufacturer and integrator.

The same applies for the CSR, and from 2015

technology and contributed to the development

the overseas business headquarters have been

the world's top manufacturers in various fields of

the CSR promotion organization, establishing aof society by providing production systems forincluded to the CSR Committee that is part ofindustry such as automobiles, semiconductors

management system.

and consumer electronics.

Hirata Corporation creates an integrated

In addition, risks associated with globalization

has been carefully examined from the viewpoint

manufacturing business structure which opensof compliance, ethics, products and the

proposal and design, parts processing, assembly,

with overseas companies and taking actions tomaintenance/support systems. This is owed tochemical substances contained inside products.

the doors for development, new projectenvironment, as well as strengthening the relation

operational trial, production establishment, andensure the safety of products and managing

Aiming to contribute to the society throughproducts

Many countries, not only limited to Japan areconcerned about the decrease in the labor force

population with the declining birthrate and aging
population.

We aim to contribute further to the society by

pursuing technological innovation in various fields

including medical, pharmaceutical and nursery careby using the automated production system at Hirata
Corporation to resolve problems to these solutions.

In addition, as environmental problems are becoming

a serious issue, we have a duty to a company to

manufacturing eco-friendly goods, taking into accountthe lifecycle of products, reducing its size and weight,
and the use of chemical substances.

We will continue to fulfill our social responsibility to

manufacture products that are friendly towards bothpeople and the environment.
Conclusion

In 2015, we were able to record the highest everconsolidated net sales of 53 billion Yen.

We sincerely thank our stakeholders for their support.
With our slogan, "One Hirata For Next Stage - Win

the race across the globe -", we aim to continuously

improve our corporate values and sustainable growth.
We appreciate your continued support for andcooperation in our endeavors.

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 2016.
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 2015 (April 1, 2015 – March 31, 2016)
Organization：Hirata Corporation, non-consolidated (consolidated results are added to the changes in business results)
Published：June 2016 (Next scheduled report: June 2017)
Reference Guidelines:GRI“Sustainability Reporting Guidelines 4.”
The Ministry of the Environment,“Environmental Report Guidelines (2012 edition)”Contact details：Quality Control Department
TEL：81-96-272-3277 FAX：81-96-272-3345
Accounting Department IR group
TEL：81-96-272-5558 FAX：81-96-272-3618
Website/http://www.hirata.co.jp

01

The Global Production Engineering Company

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

Management

Corporate GovernanceRisk Management…………… 6
Compliance,
Corporate Ethics… ………… 7

Social Report
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………………… 15
Environmental Conservationin Business Activities… …… 17
Environmental Consideration
for Products… ……………… 18
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 and CSR
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

1Company 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 2,007 employees(1,663 employees full-time)Non-consolidated 1,279 employees(992 employees full-time)
Capital2,633 million yen
Stock Exchange Listings Tokyo Securities Exchange
JASDAQ (Code: 6258)
Issued Number of Shares 10,756,090 shares
Number of Shareholders 1,864 people
Production base Kumamoto prefecture:
Kumamoto Plant,
Kumamoto East Plant,
Kusuno Plant, Shichijo Plant
Tochigi prefecture: Kanto Plant
Shiga prefecture: Kansai Plant*As of March 31, 2016

Through technological innovations, wemanufacture products that contribute tosocial development.
By realizing the customer’s 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.

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.

4

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.

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 will actively
contribute to the society.

03

The Global Production Engineering Company

Business Results

50,00050,00040,00040,00038,57538,57530,00030,00052,14552,14547,12947,12938,14638,14628,162
28,162of 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.

Clutch Assembly Line

Semiconductor Production Equipment BusinessIn 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
related to LCD screens and the organic electroluminescence (organic EL).

Unit: millions of yen
Unit: millionsof yen53,048

Consolidated
Consolidated

47,622
47,622

We engage in the manufacturing and sales of a wide range

apparatus for glasses, and vacuum platform for processing, that corresponds to the production facilities that are

Net sales
Non-consolidated
Non-consolidated

Automotive Production Equipment
Business

33,71833,71838,19738,19753,04837,72537,72520,00020,000

Wafer Transfer Robot

Coating Device

Vacuum Platform

10,00010,00000Mar-12Mar-12

Non-consolidated
Non-consolidated

3,500
3,500

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

Consolidated
Consolidated

Unit: millions of yen
Unit: millions of yen
2,825
2,825

2,500
2,500

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

394
394

0
0

Mar-12Mar-12

1,962
1,962

1,658
1,658

1,464
1,464
1,160
1,160

500
500

-500
-500

Home Appliances and Other Production Equipment

Ordinary income

3,000
3,000

2,000
2,000

Mar-16
Mar-16△259△259
Mar-13Mar-13

725
725

2,345
2,345

We manufacture and sell production equipment for manufacturersof electronic and electric machinery and equipment, including suchhome appliances as flat TVs, refrigerators, and vacuum cleaners.
Our products adapt to automatic assembly systems with various
sizes and shapes, including high-speed assembly of small condensers,

929
929

incorporated into electronic components, compressors forrefrigerators and air conditioners.

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

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

Automatic Assembly Systems of Home Appliances
The Global Production Engineering Company

04Corporate Social Responsibility Report

Corporate GovernanceRisk Management
Topic s

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

M a na g ement

We will introduce the main topics from
April 2015 to March 2016.
Held the opening ceremony for the subsidiary plant in Indonesia and North America
In April 2015, the subsidiary company in Indonesia, PT. Hirata Engineering Indonesia and in May, the othersubsidiary company Hirata Corporation of America held the opening ceremony for the subsidiary plant.
In the Southeast Asia region, we provide high-quality products and services to our customers, having our Si
ngapore subsidiary as the main subsidiary, along with subsidiaries in Thailand, Malaysia, and Indonesia.
In addition, in the North America Plant, thetrial operation of the production facility of thepower train of automobile held is possible.
We were able to realize the presidents' con
cept for corresponding closely from the custo
mer's production base.

Commendation from customers
Commendation from Dyson Ltd. for 2 consecutive years
In June 2015, Hirata Corporation was awarded the“Recognition award lean (anaward for distinguished service as a result for corresponding to Dyson's policy)”.
This is the second consecutive year of winning following last year's award forbeing an excellent supplier.
Our company has received many orders for various production facilities to build the motor for Dyson vacu
um cleaner. The construction of production system of 6 million units/year for the assembly line of the V6 mo
tor for the cordless vacuum was the main product for the company, and the machine with high precision andCorporate Governance Framework
At Hirata Corporation, as a company targeting the global

In May 2015, we received a letter of appreciation from Daiwa House Industry Co., Ltd. where the strict schedu
le management for the quick delivery was appraised for the production line of the outer wall panel for the person
al custom homes xevo Σ.
In this line, more than 200 of the orthogonal type robots made by our company were used and have been activ
ely used in the company's Okayama, Nara and Tochigi plants.

The development of pallet machine tool for the automatic transporting system
Hirata Corporation developed a pallet machine tool for the automatic transporting
system that can transport a maximum weight capacity of 4 tons.
By introducing this system, a wide variety of products for machine tools can be au
tomatically supplied, and the emission, transportation, and storage after processing
the product enable continuous manufacturing for over 24 hours.
As an effort to self-manufacture and improve the productivity, this system was insta
lled in September, and the productivity level has increased by double the amount.
Improvement of productivity and the rate operation of the machine tool is a common factor that all manufa
cturing industry faces.
Based on our performances, we are confident to provide you with this system.
We are also planning on building the system for small-sized and medium-sized machine tools and in the fut
ure, we will sell this system to general manufacturing industries.

05

The Global Production Engineering Company

Election/Dismissal

Election/Dismissal

as the emphasis on corporate governance to fulfill the

Board of Directors

social responsibilities, while also enriching the compliance

Audit

Representative Director

system and by planning to strengthen the competitiveness

Board of Auditors

Board of Directorsof business to improve the corporate value.

Advising
Instruction

Moreover, we believe that companies should assumeLegaladvisor,etc.

and stand in the shoes of the public, public interest, andInstruction

Coordination
Cooperation

ReportSupervision

Election
Dismissal

social factors and keep a good relationship with all of our

Audit

Internal Audit Department

Audit

Coordination
Cooperation

Audit

ReportReportCoordination
Cooperation

Financialauditors

Executives
Sales Department ／ Management Department

stakeholders will lead to the improvement of shareholders.

The Board of Directors at Hirata Corporation consists of 11 directors (including 2 outside directors).
The appropriateness of the president’s duties in the Board of Directors is audited by the Board of Auditors
including an external auditor and all audit members.
General meeting of shareholders

Election/Dismissal
Emergency incident

The Internal Audit Department, which was established
as a department directly
reportingto the President, conductsElection/Dismissal
Election/Dismissal
Initial response, BCP activation

audits of the Business and Administration Divisions
inDirectors
collaboration andFrom
cooperation
with the auditors.
the day
Board of
Setting up Response Headquarters and conﬁrming damages and safety.

ReportContacting customers, suppliers, and aﬃliates
Representative
Board ofadvisers
Auditors
For important matters of compliance, the Company
willDirector
consultAudit
with legal
ifCoordinationnecessary to receive useful advice.
Cooperationof Directors
Establishing
BCP and systems
Furthermore, the Company has introduced Boarda management
meeting and executive
officersystem.
Instruction

Community
Activities

Advising
Coordination
Fromexecutive
fewAudit
We are working to strengthen the corporate
governance15
officers
have been appointed
Report where
Audit
Cooperation
Instruction
days to few Correspondence to customers Correspondence to employees Financial Action

monthsand cooperative companies

business resources

Securing of Funds,
Payment, and Fundrasing

Internal Audit
Department(of them 9 also serving as a director) by carrying out each
responsibility
quickly
and accurately, while also
Coordination
SupervisionLegaladvisor,etc.

Election
Dismissal

Adjusting and restoring business transactions

Emergency measures and restoration

Cooperation

Audit
ReportFinancial
Restoration
participating in discussions related to the importanceof businessduring management
meetings.
auditors*Directors Number is as of June 23, 2016

Executives

compact size with flexible and speedy correspondence led to high evaluation, leading to receiving the award.
Letter of appreciation from Daiwa House Industry Co.,Ltd.

Election/Dismissal

General meeting of shareholders

market, we promote the effective management as well

Sales Department ／ Management Department

BCP (Business Continuity Plan)
To avoid unexpected disasters andrisks in advance and take prevention,
protection, and reduction measures
into consideration to ensure continued
business operation, to ensure that thebusiness resumes within the shortest
time possible after a disaster.

In order to protect

Emergency incident

problems that may hinder the business
operation, we will consider all possible

Information Security
information assets from

Initial response, BCP activation

threats such as leakage

Setting up Response Headquarters and conﬁrming damages and safety.

From the day

and damage and to

Contacting customers, suppliers, and aﬃliates

Establishing BCP and systems
From few
days to few Correspondence to customers Correspondence to employees
and cooperative companies
business resourcesmonthsAdjusting and restoring business transactions

Emergency measures and restoration

Community
Activities

Financial Action

Securing of Funds,
Payment, and Fundrasing

Restoration

In advance of any possible phenomena (disasters, unexpected problems), we will
implement precautions and restoration plans, and will continuously practice disasterprevention and BCP training.
We have introduced a safety confirmation system to rapidly and efficiently ensure
the welfare of our employees during disasters by performing emergency drills on aregular basis.

safely carry out businessactivities, the information
security management
system and the information
management committee
has been establishedto develop security
management regulations
to prevent exposure ofconfidential information.

As a result of these efforts, we will prioritize restoring the business even during
disasters and will meet the needs of customers and areas that require assistance.
The Global Production Engineering Company

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.

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 andtransparent 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 our valued
customers, shareholders, business partners, employees as well as the members of our local community and, in order to make acontribution to society at large, the following Code of Conduct is applied to all employees of every company in the Hirata Group withevery 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, 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
non-disclosed 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 never for
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 of entrenchingourselves deeply within the community.
We are against antisocial movements and organizations thatthreaten the order and security of the citizenry and vow never toassociate 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 make fora 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 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.

Together with Customers

We strive to provide the highest
satisfaction by corresponding to thecustomer's demand for quality and safety.

Quality Assurance
Hirata Corporation has constructed a framework to promote a Quality

Hirata Corporation provides various opportunities to educate our employees such as learning about the act against
delay in payment, export trade control, security control, prevention of insider trading, work safety, etc. based on thebusiness principles and compliance charter to ensure compliance with related laws in Japan and overseas, company

engages in quality assurance activity.
We are working to provide consistent quality, especially for mass-

Management Review

produced products by enhancing the management level and to build(Corporate) Quality Conference

understanding through specific examples of actions that should be taken to ensure thetrust of shareholders and investors to provide the integrity and fairness of the stock market.
If concerning matters related to compliance occur, internal notification will be
issued, and training for anyone related will be conducted to improve the awarenessof 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 to whistleblowing.

07

The Global Production Engineering Company

ISO Audit Teamquality assurance system including the supplier.
In addition, as part of the quality assurance, in order to provide
safe products that can be used safely by our customers, the qualified(Departmental)
Quality Conference

person with safety assess* will provide education towards the design■ System for Quality Management System Promotion

and manufacturing staff within the company to increase the application(Departmental)
Quality Conference(Departmental)
Quality Conference(Departmental)
Quality Conference

performance and basic knowledge of standard and certification related to safety.
*Qualification system that authenticates that the knowledge and safety of the validity decision incredible according to the international safety standards.
Product
Product
Evaluation

Customer Satisfaction

Evaluation

Corporate
Corporate
Evaluation
Evaluation
3.48
3.48

We are working to improve customer satisfaction through theopportunity for each department to interact with customers, collecting
customer's opinions and suggestions to improve our products, as well as

3.53
Service3.53
Service
Evaluation
Evaluation

Furthermore, we have conducted customer satisfaction surveys in 2015
companies.
the service support and cooperation with departments in the future.

3.72
3.72

3.74
3.74

3.66
3.66

Technology

Continual Use

Evaluation of

Evaluation of
personinincharge
chargeperson(Sales)(Sales)
Evaluation
ofof
Evaluation
personpersoninincharge
charge(Technology)(Technology)

3.71
3.71

Continual Use

Based on these valuable opinions, we will strive towards strengthening

3.63
3.63

Technology
Evaluation
Evaluation

whose survey items are in common with those carried out at all other

Evaluation of
Evaluation of
person in charge
personin charge(Manufacture)(Manufacture)

No Opinion

No Opinion

78％

Will not use

Will not use

78％
0％

20％

20％

50％

2％

2％

100％

0％ FY2015 Customer Satisfaction
50％
100％
From theSurvey Results,
Satisfaction weighted average score (5 points max.)

regulations and any other social norms.
During the training program for the prevention of insider trading, we have increased our

Quality Control Representative

the quality control representative, each department promotes QMS andour service support.

Compliance Education

Top Management

Management System (QMS). Under the responsibility and authority of

VOICE

Kumamoto Plant authorized as a UL Registered Plant
by United States' safety standard
In December 2015, the Kumamoto plant (Device Center Electronics Department) received
authorization by the United States' safety standard and became a registered plant receiving thesafety standard UL 508A for control panels for North America.
As a result, we are able to correspond quickly to customer's needs to manufacture products
using the control panel under UL standard.
There are only around 10 companies in Japan that have been authorized by the UL standard.
Hence, in the future, we also aim to expand our market to equipment manufacturers that
require control panel of UL508A authentication in the country.

The Global Production Engineering Company

08Corporate Social Responsibility ReportSocial Report

Together with Business Partners

Together with Employees

Suppliers Meeting

Global Human Resource Policies

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

In May 2015, we held the 2015 Supplier Meeting in Kumamoto
City's Ueki Culture Hall with attendants from 222 people and140 companies.
In this meeting, we awarded the best performance award(3 companies), the best supplier award (10 companies), thespecial award (2 companies), and the letter of appreciation (20companies) to suppliers that have contributed greatly to ourmanufacturing at Hirata Corporation in 2014.
Furthermore, the explanation of financial results, trends ineach business department, and the procurement policy made it possible to understand the current situation andfuture prospects, which brought good feedback from a number of participants.
We would like to continue this meeting in the future.

Skill Training Seminars, Study Sessions
At Hirata Corporation, we are continuously offering skill training
seminars and study sessions to strengthen the competitiveness of
suppliers.
In August 2015, we conducted a practical workshop with companies
who have top-level engineers enrolled for skill improvement.
In addition, we conducted 6 coaching/management/businessmanner workshop inviting professional instructors to teach to the 19
members of the senior management of suppliers over the span from
September to October.
It was the first time organizing this. However, we received many
feedbacks from our employees telling us how these workshops led to improving their skills.
Hirata Corporation aims to build the ongoing partnership with our suppliers and to work with coexistence withall suppliers.

VOICE

Grow Together as a Good Partner
Fujimoto Piping Co., Ltd. President and Representative Director Masaru Fujimoto
At our company, we conduct contract works for design and manufacture for devices and plumbing
construction work and assembly of units.
At this supplier meeting, we received the best performance supplier award.
We have continuously received awards after the implementation of the award system, and for 22years
since the foundation of the company, working together for a long time has been evaluated highly, andwe are pleased to have developed this trust with Hirata Corporation.
We can quickly learn about the new trends in manufacturing to come in the next generation byworking with the globally advanced Hirata Corporation.
By continuously challenging ourselves to these new technologies lead to the improvement of ourtechnology as well as bringing motivation for our employees.
As a partner, we hope to always try new things and continue to grow together.

09

Social Report

The Global Production Engineering Company

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.

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 acompany 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,
or other 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 inaccordance with local 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 our management philosophy, "Makes the best use of its members".
With this 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.
In FY 2015, in addition to the conventional systematic style of education and curriculum plan, professional studies
and subject-based education has been included.
Hirata Corporation is a build-to-order company. Therefore, it is crucial that the required skills are available for the
success of order. 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.

VOICE

To create a vibrant company that "Makes the best use of its members"
Machine Design Third Section, Second Mechanical Design Group, Second System Department,
Kumamoto Office, Operational Headquarters Hisayuki Sueoka
In the project management training (below is called PM), we aim to "visualize" the problem and learn
techniques to analyze this.
One of the elements for PM is "empowerment (management technique that gives authority and force of
the administrator to subordinates to meet the goals)"and is an important element to create a high-quality
manufacturing system that is becoming more sophisticated, complex, and large scale.
Currently, using the empowerment technique, we have been scoping out the individual skills, aiming to
improve the technical skills that would lead the project to success.
By having the participants spread the word of the effectiveness of this technique in the company, we
would like to create a vibrant company that "Makes the best use of its members".

The Global Production Engineering Company

10Corporate Social Responsibility ReportSocial ReportSocial Report

Together with Employees

Together with Employees
VOICE

Respecting human rights and diversity

Support for Balancing Work and Childcare■ Efforts for Re-employment
Under the "Re-employment System" established in 2006, the Company has entered 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

Number of re-employed persons above 60 years oldin accordance with their respective lifestyles, adjusting andconsidering working days and hours based on the desires(Unit: persons)

Eriko Hayashi

I received a childcare leave and shorter working hours for childcare after giving birth to my first child. I

Retired Employees

Re-employment Applicants

Re-employed Persons

2011

16

11

11

2012

25

18

18

was due and then return to work a few months after giving birth. Now being in the same position as my

2013

23

17

17

mother, I am not only thankful for the welfare of my company, but also the understanding and support

2014

11

9

9

2015

13

9

9

from my co-workers and family. I am very fortunate for the environment that I am in.

contract.
Based on the Law Concerning Stabilization of Employmentof Older Persons as revised in April 2013, we have revised

2.50

The employment rate of disabled persons for FY2015 was 1.67%,
falling below the statutory employment rate of 2.0% after the revision.
We strive to recruit individuals and achieve the statutory employment
rate by participating in briefing sessions hosted by related organizations

2.00

I hope to become a support through my work for the younger co-worker in balancing work and childcare
I aim to continue advancing while always remembering to be thankful for the support I get from my co-workers and family.

1.99％

1.90％ 2.02％

1.85％ 1.67％

2011

2012

2014

1.50
1.00
0.50

（％）

My mother told me that 30 years ago when she gave birth to me, she had to work until right before shewhen they have children.

our re-employment system, and reemploy those who desire until 65 years of age.
■ Proactive Employment of Disabled Persons*As of April, 2016

was able to spend my time with my child and see my child's growth.

Fiscal Yearof re-employed persons and the content of each businessand acquiring trainees from vocational schools.

Department of General Affairs and Human Resources, Management Head Office

2013

Legal
Employment
Ratio
2.0％

2015 (Fiscal Year)

Changes in Employment Ratio of Disabled Persons (%)

Labor Safety and HealthWith a motto,“All employee participation in zero accidents", Hirata Corporation holds a safety and health meetingin each plant and a company-wide safety and health meeting every month to promote systematic health and safety
activities.
At the company-wide health and safety meeting, we create plans for constant improvement using the PDCA

■ Measures Against Harassment
We have been holding seminars on compliance, abuse of authority, and sexual harassment in seminars held annually for
new chiefs and managers and labor management seminars (for administrators and managements), which began in June2015.

system (Plan Do Check Act).
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.
We strive to ensure the safety in Hirata Corporation factories and our client factories with risk assessment andhazard prediction training during a morning meeting of each work site.

■ Retirement Ceremony
We hold retirement ceremonies two times a year in June and December tocommemorate those who are beginning a new phase of life in retirement.
It is a ceremony to show Hirata Corporation's gratitude towards those whohave supported our company for years on end.

All executives including the CEO will conduct a safety patrol of the plants during the annual "National Safety
Week" in July to manage work environment and raise awareness for safety in the workplace.
In FY2015, there was one occupational accident that required the worker to take time off from work for recovery.
We strive for zero occupational accidents in FY2016■ Implementing Safety and Health Training
We provide appropriate education and offer courses for operating cranes, forklifts, and industrial machinery.
Health and safety education is a must for employees and contractors working in plants.
Handbooks on Hirata Corporation Codes are distributed to enforce safety and health.

Work-life Balance
In FY2015, we focused on“work efficiency”and enforced three regulations as a measure for“reducing overtime work”: (1)Prohibiting overtime work on Wednesdays, (2) Prohibiting overtime work past midnight, and (3) Prohibiting working without
any days off (At least one day off every week, four days off every 4 weeks).
Efforts to achieve these regulations led to making
improvements and creating efficiency in ouroperations and as a result, we reduced overtime
work by 10% without affecting our production.
We plan to create new measures as we
continue to enforce these regulations for further
improvements in the work-life balance.

11

The Global Production Engineering Company

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

TOPICS

Implementing Safety Operation Training
Every year, we invite instructors from non-life insurance companies to conduct seminars
on road traffic safety.

FY2013

FY2014FY2015

Male

1

1

1

Female

8

10

9

Male

0

0

0

considering the number of cars we own. We will continue to promote our efforts to bring

Female

0

1

2

Male

0

0

0

down our traffic accidents to a zero.

Female615

15

Employees learn about accident cases of company-owned cars and causes of general
traffic accidents based on analysis. They study driving safety from DVDs.
According to our insurance company, the number of accidents we have had is few

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 our commitment
to be a company rooted in the local community as a good corporate citizen.

IR Activity Policy

Donating Blood

Internships

Each Hirata Corporation factory participates in

Hirata Corporation believes that a fair and equal pricing of shares

Hirata Corporation offers internships to "experience

is on the premise that information on investment decisions are being

donating blood as one of the simplest ways towork," which gives the students opportunities to thinkshared appropriately in a timely manner. Therefore, we recognize thevolunteer.

"what it means to have a corporate job," or "how much of

Kumamoto factory has been donating blood for overneed to fairly, equally, accurately, and quickly provide the investors
with important company information that influences investment
decisions.
We will accurately and appropriately disclose relevant information

Briefing for Indivisual Investors

their academic knowledge can be applied."

30 years. They promote blood donation with posters

In the summer and winter of 2015, we accepted ten

and factory announcement and about 200 people

students in total from technical colleges, universities, anddonate blood every year.

technical high schools.

All the factories have been proactive participants,

We also have accepted over 600 high school students

other important corporate information.

and Kansai factory has received a Japanese Red Cross

for a factory tour to help them have a better grasp on our

Holding information sessions for investors

Society Silver Order of Merit. We will continue tooccupation and select their academic courses efficiently.

from institutional disclosure materials such as financial reports and quarterly reports and material facts and any

With a purpose of publicizing Hirata Corporation and gaining investors, we hold company information sessions
and financial results briefing for institutional investors, analysts, and private investors.
In 2015, we held the sessions in Tokyo, Kumamoto, Fukuoka, and Kagoshima and had many participants.

raise awareness in

We have also been promoting global human resources

social responsibility

in the recent years and accepted three interns and gaveand donate blood,a factory tour to 116 people at our overseas affiliate,

which also offers(Taiwan Hirata).

us opportunities

IR Tools

to think about ourhealth.

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. B
 riefing documents for financial results andquarterly financial

3. FACT BOOK
consolidated statement of

results

leasing for the past five (5) years

These documents

These are materials summarizing

explain the summary

the consolidated financialof financial results instatements, consolidated

each term for an easierstatement of income andunderstanding and arefinancial results index for theused as materials forpast five (5) years both infinancial results briefing for institutional investors inJapanese and English.

the final and second quarter financial results.
4. General Meeting of Shareholders

2. Hirata Report

These are materials used

This report, forAs part of our community-based social contributions, we have been continuously engaged in activities visiting
junior high schools in neighborhoods to give career talks and invite students to the company for hands-on
learning.
In addition, we invited ten third-year students from Kumamoto Municipal
Kanan Middle School for hands-on learning in October 2015.
After explaining the work, products, and history of Hirata Corporation
using documents and 3D videos, we demonstrated teaching an SCARA
robot and checked its movement. We then gave a tour of the office andfactory.
The students were able to have a better grasp of what we do by coming
in touch with unfamiliar industrial robots and receiving our video lectures.

for explanations at generalshareholders, describes

meetings of shareholders.

the business content,
results, plans and5.“ToOur Shareholders andtopics for an easier

Investors”on the Hirata

understanding and is

Corporation Website

issued and sent by mailThis page is a collection ofafter the disclosure of

information for our shareholders and investors withthe final and second

the intention of promoting understanding of Hirata

quarter financial results.

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

13

Career Talks and Hands-on Learning

The Global Production Engineering Company

VOICE

Student Feedback
Kanan Middle School Third-Year Student
・I thought that Hirata Corporation was a car parts and robot manufacturer, but I was surprised to learn that in addition to therobots, they also produced equipment for manufacturing cars, semiconductors, and home appliance-related products.
・I was surprised to learn that the factory in Ueki that I always walk past works globally with Dyson and Intel.
Now I know what that blue building is for.

The Global Production Engineering Company

14Corporate Social Responsibility Report
Environmental Report

Environmental
ReportEnvironmental Management
To realize a sustainable society, we havedeveloped an Environmental Management System
and are working hard to protect the environment.

Environmental Goals○ : achieved, △ : nearly achieved, × : unachieved

Environmental Policy
We at Hirata establish environmental policies andpromote environmental activities in line with the policies.
We contribute to protecting the global environment by
reducing the environmental load of our business activities,
products, and services.
1. ISO (9001/14001) Basic Policy(1)Putting customers first and providing high-quality productsthat meet the customer satisfaction.
(2)Producing high value-added, environmentally-friendly, andoriginal products through efforts in technical innovationand improvement.
(3)Upholding laws and regulations and making products thatare 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: Environmental Management Systems
QMS:Quality Management Systems

2. Particulars of Our Environmental Policy(1)Working towards manufacturing products with a reduced
environmental load considering the product lifecycle byimplementing production engineering.
・Promoting energy-saving products
・Promoting recyclable design and manufacturing ofproducts
・Reducing harmful materials used in products(2)Abiding by environmental laws, treaties, requirements andvoluntary 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 a sustainable society, striving
to conserve the environment technologically andeconomically in all business activities and production
processes including sales, designing, manufacturing,
installing and services after sales.
・Reducing energy usage
・Reducing waste and promoting recycle
・Reducing harmful materials and using substitute article
・Preventing environmental problems and pollution(4)Increasing environmental awareness through implementing
education and publicity programs.
(5)Reviewing EMS regularly for continuous improvement.

Categories

Environmental Management System

Global WarmingCountermeasures■ Structure of Promotion for Environmental
Management System
Hirata Corporation has built up a structure ofpromotion for top Environmental Management System(EMS) led by the management and environmental
management manager and obtained an international

Using theresources
effectively

standard ISO14001 certification at the Kumamoto,
Kanto, and Kansai region production bases.
■ Continual Improvement
Twice a year, we review our management systemby implementing a management review by eachdepartment head, discussing the results, and coming
up with the improvement strategies.
the environmental conference to further materialize
the strategies and achieve improvements.

More than 3% decrease in CO2emission in comparison with actual
production in 2014

12% decrease in comparison withactual production by installing of aenergy-saving equipment such as
LED lighting○

Reducing CO2
emissions fromproducing energy
saving products

Environmentally friendly designs
Implementing energy saving designs
on the products

Conducted product assessments
and designed smaller and lighter
products○

Continue conducting productassessments

Reducing water
usage

More than 3% decrease in water usage
1% decrease in comparison within comparison with actural production
actual production
in 2014.

△

Investigate and consider
recycling water used in
production

Reducing andrecycling industrial
wastesMore than 3% decrease in waste incomparison with actual production in
2014

8% increase in comparison withactual production
As production increased; oil,plastic, and wood waste increased.

△

We endorse recycling waste
plastic.

Producing smaller, Environmentally friendly designs
lighter, andImplementing smaller and lighter
recyclable products designs on the products

Implemented product assessments
and designed smaller and lighter
products○

Continue conducting productassessments

Reducing theMore than 3% decrease in PRTR Law
consumption of
Substances usage in comparison withmaterials subject toactual painting production in 2014
the PRTR Law

18% decrease in comparison withactual production○

Promote replacement ofmaterials subject to the PRTR
Law

Built an investigation system on
the chemical substances containedin products (Refer to“Response
to Management of Chemical
Substances Contained in Products”
for details)○

Promote efficiency ininvestigating the chemical
substances contained in
products

Amount of water resource input (㎥)Energy consumption per Unit

Total energy input (In crude oil equivalent) (kℓ)

5,000Energy consumption per Unit

0.200

enforce the abiding of laws and regulations.

5,000
4,000

0.200
0.150

3,532

4,000
3,000

3,532
0.089

3,000
2,000

Drainage measurements are conducted yearly to

2,000
1,000

assess the quality of water in our plants and ensure

1,000
0

0.089

（kℓ）

administration and water pollution control laws.

（kℓ）

which is the environmental month. We received many works with themes on saving energy andresources and eco-friendly design and production.
These works were put up on the notification boards and cafeteria to raise environmental awareness.

0.107
2,949
0.107

3,298

3,364

3,222

0.097
3,298

3,364
0.088

3,222
0.080

0.097

0.088

0.085

0.080

0.085
TargetValue
TargetValue

it meets the requirements standardized by the local

We called for senryu (Japanese poems) and poster designs with an environmental theme in June,

2,949

0

FY2011FY2012FY2013

FY2014FY2015FY2017FY2011FY2012FY2013

FY2014FY2015FY2017

0.150
0.100
0.100
0.050
0.050
0.000
0.000

■ Amount of CO2 Emissions（t-CO2）0（t-CO2）FY2011FY2012FY2013

7,947
7,947
0.207
0.207

40,00020,00020,0000

TargetValue
FY2011FY2012FY2013

FY2014FY2015FY2017FY2011FY2012FY2013

FY2014FY2015FY2017（㎥）
0■ Industrial Wastes
0.300

7,354
0.182
7,354

actual production (㎥/hundred million yen)Amount of water resource input (㎥)100,000
Amount of water resource input per hundred million JPY 400.0
actual production (㎥/hundred million yen)
82,319400.0
100,000
79,39880,000 75,863
76,056300.0
68,00582,31979,39880,000 75,863
76,05660,000206.6
191.2 68,005
203.4 200.4 300.0
246.9
200.0
222.6
60,000206.6
203.4 200.4
40,000 191.2
Target
246.9
200.0
222.6
Value

（㎥）

CO2 Emissions (t-CO2)
CO2 Emission Per Unit
9,000 CO2 Emissions (t-CO2)
CO2 Emission Per Unit
7,788
8,000
9,000
0.228
6,055
7,000
7,788
8,000
5,747
0.220 0.228
6,000
6,055
7,000
5,000
5,747
6,000
0.145 0.220
4,000
5,000
3,000
0.145
4,000
2,000
3,000
1,000
2,000
0
1,000 FY2011 FY2012 FY2013

Consumption of PRTR Substances (kg)■ Amountof water
input
Amount of water
resourceresources
input per hundred
million JPY■ Total energy input

Total energy input (In crude oil equivalent) (kℓ)

set up voluntary standards on particular matters andEfforts of the Environmental Month

The Global Production Engineering Company

Implementing the management ofchemical substances contained in
mass-produced products(Building and operating an information
management system)

We are pursuing to reduce the environmental load and achieve our environmental goals by understanding the impact

the ISO office and ISO internal audit. We also havematters in FY 2015.

FY2016 Plans

Reducing CO2
emissions

made by our business activities.

The abiding of environmental laws is examined byagainst the Hirata Corporation on environmental

Evaluation

Environmental Performance

Abiding Laws and Regulations and Preventing Pollution

There was no law violation, accident, or claim

FY2015 Accomplishments

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

ChemicalSubstance
Management Managing chemical
substances
contained in
products

We bring the results of the management reviews to

TOPICS

15

Long –term Goals (FY2015-2017)

0.300
0.201

0.200

0.201
0.182 Target
Value

0.200

Target
Value

0.100
0.100

FY2014FY2015FY2017FY2014FY2015FY2017

0.000
0.000

100.0
100.0
0.0

400
200
200
0

（t）
0

（t）

422

0.96
0.96
265
265

0.97
0.97
331
331

150.0
120.0

12,000
9,000
9,000
6,000

0.98

1.06

375
0.98

428
1.06

375

428

0.95
0.95
TargetValue
TargetValue

FY2011FY2012FY2013

FY2014FY2015FY2017FY2011FY2012FY2013

FY2014FY2015FY2017

118.4
118.4
7,840
7,840

6,000
3,000
3,000
0

（kg）

1.5

422
1.06

15,00012,000(㎥/hundred million yen)

2.0

600
400

150.0

（kg）
0

1,000
800
1.06

JPY actual painting production (kg/million yen)Consumption of PRTR Substances (kg)15,000
Amount of PRTR Substances per hundred million
JPY actual painting production (kg/million yen)(㎥/hundred million yen)
0.0

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

800
600

■ Consumptionof PRTR
Amount of PRTR Substances
per Substances
hundred million

62.9
62.9
4,485

120.0
90.0

71.8
6,934
71.8
6,934

4,485

6,761
45.6

5,809

6,761
45.6

37.4
5,809
37.4

FY2011FY2012FY2013

FY2014FY2015FY2011FY2012FY2013

FY2014FY201544.2
44.2
Target
Value

90.0
60.0
60.0
30.0

30.0
0.0
Target
FY2017Value(kg/million yen)
0.0
FY2017(kg/million yen)

* Actual output is used to calculateenergy use and CO2 emission per
unit.

1.5
1.0
1.0
0.5
0.5
0.0

(t/hundred million yen)

0.0

(t/hundred million yen)

The Global Production Engineering Company

16Corporate Social Responsibility Report
Environmental Report

Environmental Report

Environmental Conservation in Business Activities

Environmental Consideration for Products

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

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

Environmental Load

Environmentally-Friendly Products

Environmental loads in 2015 are as follows.

InputsThe development of pallet machine tool for the automatic transporting system

Hirata Corporation Business Activities● Energy
Electricity…… 11,967thousand kWh
LPG………………………………… 92t
Gasoline… ……………………… 3t
Kerosene………………………… 39t
Light Oil… ……………………… 37t● Water Resources
Underground Water:… 72,066㎥
Clean Water:…………… 10,253㎥●Chemical Substances
Substances for which PRTR Law applies:…… 5.8t

●Design anddevelopment

We will introduce our environmental efforts involved in the automated conveyor

Outputs●Emissions in the Atmosphere
CO2 … ………………… 7,354t-CO2●WastesIndustrial Wastes:…………… 428t
General Wastes:… …………… 28t
Valuable Resources:… …… 801t

●Procurement●Chemical Substances（Substances for which PRTR Law applies）●Production
Processing
Coating
Assembly

Toluene:… ………………………3.1t
Xylene:……………………………0.8t
1,2,4-Trimethylbenzene………0.8t
Others:……………………………1.1t

system for machine tool pallets, which can transport up to a maximum of four tons.
Key Points of Environmental Conservation●Casting the parts reduced the number of parts by about 40% and also cut the welding processes.
●Changing the power supply from oil to air pressure reduced supplementary equipment by about 50%, e.g. oil pressure pump, andincreased safety.
●Examining structures and design and installing lower output motors saved energy by 25%.
●Installing trays and gutters to catch scraps and cutting fluid increased efficiency of the cleaning process and prevents oil wastes
from leaking

Voices of the Factory Workers and Building Company Communications
Automated supply system in the manufacturing industry with machine tools could only transport up to about oneton, and no system could support a heavier weight regardless of the need.
With our needs unmet, we decided, "If it is not available, we will make one ourselves," and developed this system.
It is rare for our company to manufacture equipment for ourselves.
We began by interviewing the processing department which would be where this system was going to beinstalled.

Environmental Accounting

After interviewing and collecting large amounts of opinions and requests, the robot department began working on
the design and manufacturing, and we set up systems to cooperate and coordinate within the company.

The below is a status of environmental preservation cost.

We were able to develop an environmentally friendly system by listening to the needs of the factory workers.

We categorize these into investment and cost concerning the“Environmental Accounting Guidelines”by the
Ministry of the Environment.

Currently, our processing department uses the system as a field-test.

Categories

Major Activities

Cost for Preventing Pollution- Replacing septic tank

Investment

We are also aiming to market this system overseas and are working to reduce chemical
73

26,56474,301- Disposal of general and industrial wastes―

16,816

Administration Cost-M
 aintenance of environmental management
system- Environmental measurement- Environmental education―

30,496Social Activity Cost
– Environmental preservation and improvement- Nature conservation and beautify- Donations to environmental protection groups―

333

29,530122,019

Global Environmental Protection- Installing energy-saving equipment
Cost
Cost of Resource Cycle

Total

process of rethinking concept and design.

Cost

2,966

Business Area Cost

We have received requests for improvement after actual use and are currently in the(Unit: thousand yen)

substances to pass restrictions set by different countries.
Device Center Robot Department Hirofumi Ueda (Left) Hidenori Kikuchi (Center)
Device Center Processing Department Ikuo Sawada (Right)

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.
Hirata Corporation's products were large and involved many parts, making it difficult to examine efficiently the

TOPICSchemical substances contained in products.

Replacement to LED Lights in Factories and Offices

Chemical Substances Contained in Products in 2015 and investigated on conducting efficient examinations of chemical

In August 2015, our Kanto Factory replaced mercury lamps in the factory andflorescent lights in the office with LED lights.
As a result, we were able to save two-thirds of energy; reduce cost, waste, andemission; and improve illuminance.
We also introduced LED lighting at Kumamoto Factory (Higashi Factory), Kusuno
Factory, and Shichijo Factory in the Kumamoto Region.
We will continue to introduce LED lighting to save energy and prevent global warming.

17

The Global Production Engineering Company

As an organization subordinate to Green Procurement Subcommittee, we established the Subcommittee for
substances contained in products.
To deliver our products to customers around the world, it is important to gather and relay information on regulationsof each country on chemical substances contained in products, and such information is shared in the subcommittee
we have established.
To reduce risks caused by the chemical substances contained in products, we will continue to coordinate with ourcustomers and strengthen our management of chemical substances contained in products.
Kanto Factory introducing LED lighting*1 RoHS Directive: Regulations on chemical substances in EU*2 REACH Regulations: Chemical substance management regulations in EU
The Global Production Engineering Company

18