Hirata Corporation

Corporate Social Responsibility Report

CSR REPORT 2020

Top Message■ Committing to Overcome Corona Shock Together with Our Stakeholders
As the new coronavirus pandemic still expanding across the world, the global economy isfacing the biggest crisis since the World War II. In this hard time where the world markets
are unpredictable, Hirata Corporation is here to support our customers worldwide and will
overcome the corona shock together with our stakeholders.
In the turbulent world markets, we will be responding to the inevitable shift with thefocus on the demographic aging, skyrocketing healthcare costs, electric vehicles, and more.
Our business will further be shaped around the Sustainable Development Goals (SDGs) for
more commitment to the stakeholders and contribution to society.

■ Toward Our Sustainable Operations
Hirata has activated its Business Continuity Plan (BCP) in 2020 to prevent the spread of
the new coronavirus and minimize its effects on our business. We will continue to review
our system to keep our business running in this contingency. Long stretch of disasters or
emergencies places great stress on people. Hirata opened a healthcare center and an inhouse gym to promote employees' health (closed as of the end of May 2020 to prevent
infection spreading). We will drive our healthcare programs including mental health andsound management, a foundation for Hirata's manufacturing.
Our new Kumamoto headquarters factory will be completed in June 2020. Equippedwith IoT and 5G technologies, the new factory will be thriving in manufacturing toward
environmental load reduction and further reinforcement of our operating base.
In this unprecedented corona shock across the world, Hirata will thrive through thisdifficult time with its stakeholders. Finally, I sincerely hope this new coronavirus global
pandemic passes off soon.

President

Yuichiro Hirata

The Global Production Engineering Company

1Corporate Social Responsibility Report 2020

Contents

Social Report

Top Message………………………………… 1

Together with Customers………………… 9Management Philosophy………………… 2

Together with Business Partners……… 10

CSR Policy and Overview of Company and Business…… 3

Together with Employees………………… 11

Products Information… …………………… 4

Together with Shareholders and Investors…… 14

Topics… ……………………………………… 5

Together with Local Communities……… 15

Management

Environmental Report

Corporate Governance… ………………… 6

Environmental Management… ………… 16

Compliance, Corporate Ethics… ……… 7

Environmental Conservation in Business Activities…… 18

Risk Management… ……………………… 8

Environmental Consideration for Products…… 19

Editorial Policy
In order to inform the business activities of Hirata Corporation and the relationships with our
stakeholders, we hereby issue the CSR Report 2020.
By closer communications with stakeholders through the Report, we will improve ouractivity level. We truly appreciate your direct opinions and comments.
Scope of report
Target Period
Organization:FY2019 (April 1, 2019 to March 31, 2020):Hirata Corporation, non-consolidated (consolidated results are added to thechanges in business results)
Published: June 2020 (Next scheduled report: June 2021)
Guidelines referred :GRI "GRI Standards 2016"
The Ministry of the Environment, "Environmental Report Guidelines (2018edition)"Contact:Corporate Planning Department
TEL: 81-96-272-3668 FAX: 81-96-272-3696
Investor Relations & Public Relations Department
TEL: 81-96-272-5558 FAX: 81-96-272-3618
Website: https://www.hirata.co.jp/en/

Management Philosophy
Under the management philosophy andCSR policy, Hirata Corporation will continue
to contribute to developing a sustainable
society, cooperating and providing mutual
support with our many stakeholders to
conduct business activities and activities ofevery single employee.

・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.

The Global Production Engineering Company

2Corporate Social Responsibility Report 2020

CSR Policy

12
3

Through technological innovations, we manufacture products that contribute to social development.

4
5

We build up appropriate relationships with all stakeholders.

By realizing the customer's desire for quality, safety, and productivity, we will meet these expectations of society through ourceaseless technological innovations.

We respect human rights of all persons who are 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 their job.

We comply with related laws, social norms and internal regulations and carry out fair and impartial
business activities.

We carry out fair and impartial business activities in compliance with laws, etc., and secure transparency through timely andappropriate information disclosure. Through these activities, we maintain a sound investment environment.
We formulate appropriate relationships based on mutual trust with all stakeholders, and business partners and will cooperatewith each other for sustainable growth.

We make efforts to protect the environment and contribute to society through all corporate activities.

By striving to protect the environment, we ensure a safe and healthy life for local residents and will actively contribute to thesociety.

About the Sustainable Development Goals (SDGs)
The Sustainable Development Goals are universal call included asa part of the 2030 Agenda for Sustainable Development which was
adopted in the UN Summit held on September 2015 to action towardrealizing a better, sustainable world by 2030.
The SDGs represent 17 Goals pledge to leave no one behind of
this planet. The SDGs are a global common objective for all nations.

Overview of Company and Business
Capital2,633 million yen
Hirata Corporation
Non-consolidated
Stock Exchange
ListingsConsolidatedT he First Sectionof theofTokyo
1
 11 Hitotsugi, Ueki, Kita, Kumamoto,
Unit: millions
yen
94,163
Stock Exchange (Code: 6258)
861-0198 Japan
TEL: 81-96-272-0555 FAX: 81-96-272-7901 Issued Number of Shares
10,756,09077,302
shares80,542
RepresentativeP resident and Representative Director
Number of Shareholders 8,756
69,745
Yuichiro Hirata
Production baseK
 umamoto prefecture:
65,61262,78457,751 plant, Kumamoto
Date Established December 29, 1951
Kumamoto
53,048
Accounts Closed March 31 (annually)
east plant, Kusuno
plant, Shichijo
48,123
Employee Number C onsolidated 2,201 employees (1,849
plant
37,725
employees full-time)Non-consolidated 1,362
Tochigi prefecture: Kanto plant
employees (1,058 employees full-time)
Shiga prefecture: Kansai plantCompany Name
Headquarters

Business Results
March

Net sales

March

March

March
2019

2016
2017
2018
Ordinary
incomeNon-consolidated

Consolidated

Unit: millions of yen

94,163

Non-consolidated

Consolidated

Non-consolidated

80,54277,302
69,74562,78450,00065,61257,75153,04848,12340,00030,00037,725

Unit: millions of yen

Consolidated
9,247

Unit: millions of yen

53,04852,14580,542

47,129

8,039

6,182

March
2020

38,146
6,066
33,71838,197
6,306

37,72562,784

4,830

28,16220,000
2,825

2,627

2,345

2,861

10,000

March
2016

March
2017

Non-consolidated

March
2018

Consolidated
9,247

March
2019

March
2020

March
2016

0

March
2017

March
2018

March
2019

March
2020

*As of March 31, 2020
Unit: millions of yen

Non-consolidated

Consolidated
Unit:millions of
The Global Production Engineering
Company
3 yen

GeneralMeeting of Shareholders
3,500Corporate Social Responsibility Report 2020

Products Information
Main Product Line Introduction

Automotive Production Equipment BusinessWe engage in the manufacture and sales of a wide
range of production equipment, such as powertransmission/driving devices for engines andtransmissions, so-called power trains as well as
drive units and packaging for electric vehicles (EV),computers to control electronic devices, automotive
electronic components for various sensors, aircompressors for air conditioners, ABS brake modules,
motors for hybrid cars, and driving inverters.

Clutch assembly line

Semiconductor Production Equipment and Panel Device Manufacturing 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 foratmospheric and vacuum environment, as well as EFEMs (Equipment Front End Modules) that
integrates these components.
In the panel device manufacturing field, we mainly engage in consignment manufacturingof liquid crystal glass conveyance systems, resist coating systems, and evaporation equipment
related to organic electroluminescence (organic EL). In addition, we also manufacture and sellcutting apparatus for tempered glass, vacuum platforms for processing, and other products.

Wafer transfer robot

Laser glass cutting system

Vacuum platform

Home Appliances and Other Production Equipment
We manufacture and sell production equipment for
manufacturers of electronic and electric machinery andequipment, including such home appliances as flat TVs,
refrigerators, and vacuum cleaners.
Our products are capable of adapting to automatic
assembly systems with various sizes and shapes, including
high-speed assembly of vacuum cleaner motors andsmall built-in electronic component capacitors as well ascompressors for refrigerators and air conditioners.
We also adapt to transportation equipment andmanufacturing devices of automotive tires.

Automatic assembly systems of home appliances

The Global Production Engineering Company

4Corporate Social Responsibility Report 2020

TopicsDiscover some of our stories from April 2019 through March 2020.

Receives Regional Special Award from JATCO Ltd
Hirata received Regional Special Award from JATCO Limited.
We have proposed this prize-winning work, ACS* conceptbased equipment for JATCO's transmission assembly line, wh
ich then was approved as a JSL (JATCO Standard Line). Highly evaluated was its integration of units that led to strict meeti
ng of deadlines and early stabilization of quality. Every year JA
TCO recognizes the parts and equipment manufacturers whoare contributing to quality improvement and manufacturing. In
this fiscal year, 37 suppliers in total for four categories wereawarded, including Hirata.

Desktop award from JATCO* ACS: Hirata's unique concept to standardize equipment processes

Exhibits at 21st China International Industry Fair 2019
Hirata had a booth in the 21st China International Ind
ustry Fair 2019 from September 17 to 21, 2019 joint
ly with our Robot Department, two group companies in
China, and distributors in China. The Fair attracted 2,610
exhibitors and 182,000 visitors. The Hirata booth, displa
ying a 6-station reducer assembling demonstration machine including a newly designed robot, was packed with
more-than-expected 1,600 visitors. We will continue to
strive to develop new markets and customers.

Hirata booth crowded with visitors

Hirata Field Engineering Headquarters Factory Relocates
Hirata Field Engineering Co., Ltd., a group company ofours, moved its headquarters factory to the Semicon Te
chno Park in Koshi City, Kumamoto on March 25, 2020,
from Kumamoto City. The new premises are three tim
es larger than before. The building even has a floor designed based on ideas from employees like shared spac
es and desks, providing a comfortable workspace. With
this refreshing change, the whole staff is ready to work
toward go for further business development.
* The headquarters factory has relocated on April 1, 2020.

New headquarters factory

The Global Production Engineering Company

5Corporate Social Responsibility Report 2020

Management

Relevant SDGs

Corporate Governance

We are enhancing corporate governance to meet the expectation of trust from all of our stakeholders.

Basic Stance

At Hirata Corporation, as a company targeting the global market, we promote the effective management
as well as the emphasis on corporate governance to fulfill the social responsibilities, while also enriching
the risk management/compliance system and by planning to strengthen the competitiveness of businessto improve the corporate value.
Moreover, we believe that companies should assume and stand in the shoes of the public, public
interest, and social factors and keep a good relationship with all of our stakeholders will lead to theimprovement of shareholder return.

Corporate Governance Framework

The corporate governance system is as follows as of June 25, 2020:〈Board of Directors〉It is held once a month as a scheduled meeting or ad hoc as required to decide
important matters including the management policy and the intermediate or annual management plan of the
Hirata group and supervise the progress of the management plan and the operation execution status of the
management personnel. Two of the five directors constituting the Board of Directors are outside directors inorder to strictly exercise the surveillance function over the Board of Directors. Their term is one year in order toclarify their management responsibility as a director.
〈Management Meeting〉It consists of 13 executive officers (3 interlocking directors and 10 full-time executive
officers) elected by the Board of Directors, and deliberates the resolution matters of the Board of Directors inadvance and decides various matters on the execution of operation based on the management policy and theplans specified by the Board of Directors. It is held once a month as scheduled or ad hoc as required. In orderto clarify the operational responsibility, all of the executive officers are elected as commissioned officers andtheir term is one year.
〈Board of Auditors〉It is established to audit the appropriateness of the duty execution status of the directors
in the Board of Directors. The Board of Auditors consists of four auditors all of which are outside auditors. The
auditors have a high degree of professionalism and perform an appropriate audit from the standpoint of theoutside auditor.
〈Accounting Auditor〉We enter into an audit contract with KPMG AZSA LLC. and are receiving their accounting
audit. We consult the auditing company
General Meeting of Shareholders
on important accounting issues as needed
Appointment/
Appointment/
Appointment/
and receive advices about appropriate
RemovalRemovalRemovalDesignation/measures.
Board
of
Board of Directors
Compensation
Auditors
Advisory〈Designation/Compensation Advisory
Recommendation
Directors
Committee
AuditorsCommittee〉It has been established as an
Audit
Representative Director
arbitrary advisory organization of the Board〈Decision-making/Supervising〉
of Directors. The purpose of this committee
Coordination
Supervising
Appointment
is to deliberate important matters such
/Removal
Audit Accounting
Reporting
Reportingas the designation and compensation of
AuditorManagement
Meeting
CSR Committee
directors and executive officers, secure
Coordination
Executive Oﬃcers
the objectivity and transparency of these
Risk Management
Coordination
Committee〈Operation execution〉
Reportingmatters and further enhance the corporate
Compliancegovernance system.
Business function/
Committee
Internal Audit
Non-consolidated

Consolidated

Unit: millions of yen

94,163

Non-consolidated

80,54277,302

69,74562,78465,61257,75153,048

Consolidated

50,00040,00048,12330,00037,72552,14547,12938,14638,197

3

33,71828,16220,00010,000

March
2016

March
2017

Non-consolidated

March
2018

March
2019

Consolidated

0

March
2020

Unit: millions of yen

Non-consolidated

9,247

Consolidated

3,500

8,039

3,000
2,500

6,182

6,306

6,066

1,962

2,000

4,830

1,658

1,500

929

1,000

2,825

2,627

2,345

2,861

500

725
394

0

-500

March
2016

March
2017

March
2018

March
2019

Administrative function/Subsidiaries

△259

March
2020

Audit

Department

The Global Production Engineering Company
緊急事態の発生

6

当日

Corporate Social Responsibility Report 2020

Relevant SDGs

Compliance, Corporate Ethics

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

Compliance Charter
Fundamental Principles

Because of our "global" nature, we at Hirata Corporation as well as
each of our Group companies abide by a set of established rules
we call our "Code of Conduct" and strive for total compliance toit 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 Corporation are fully
aware of our mission and role as a corporate entity with respect toour valued customers, shareholders, business partners, employees aswell as the members of our local community and, in order to makea contribution to society at large, the following Code of Conduct isapplied to all employees of every company in the Hirata Group withevery single employee having the responsibility of maintaining andimproving 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 withbusiness partners.
3. Disclosure of corporate information
We at Hirata shall disclose information on the management of ourcompany as well as on the condition of our activities to shareholders
and investors at the suitable time and in an appropriate and fairmethod always in accordance with relevant laws and statutes. We
shall take all the proper precautions whenever handling non-disclosed
corporate information (insider information) making sure there is
no profit-sharing or favors bestowed to individuals involved in thetransaction of equity and other securities based on this information or
to other parties.
4. Proper management and utilization of corporate assets
We at Hirata shall manage our company's tangible and non-tangible
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 our energy inprotecting the environment, reusing natural resources and developing
the local community with the hope of entrenching ourselves deeply
within the community. We are against antisocial movements andorganizations that threaten the order and security of the citizenry andvow never to associate with them.
6. Respecting the individual
We at Hirata shall strive to respect the rights, privacy, character andindividuality of each and every single individual and make for a happy
workplace for all.
7. Controlling confidential information
We at Hirata are devoted to the strict management of not only ourvalued customers' personal information but also our own secretcorporate information and employees' confidential data, which we
vow never to illegally or unfairly, disclose or leak either during theiremployment or after their departure from this company.
8. Duty of practice and accountability
We at Hirata shall promptly report any and all infractions of this Codeof Conduct in the event of their detection during the course of theexecution of business in accordance with the same. Should such areport be issued, the employee or employees in question shall beprotected from liability.

Promotion of ComplianceTraining programs were provided for our group
employees on laws for subcontracting, labor man
agement, safety assurance export control, harass
ment, etc. The compliance committee met twicea year for a regularly scheduled meeting and deliberated on the social trends including law amen
dments and misconducts, the implementation st
ate of compliance measures in Hirata, promotion
programs, law compliance state, etc. The Compliance Department issued a compliance newslett
er for raising compliance awareness.

Helpline

From May 2008, Hirata Corporation, under our
Code of Conduct, established an external reporting contact, called Hirata Helpline, in addition to
the internal reporting contact for employees toreport problems that 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 anonymo
us reporting and a whistle-blower shall not faceretaliation. The investigation result will be report
ed to the Compliance Committee and addressed
appropriately.

The Global Production Engineering Company

7

Corporate Social Responsibility Report 2020

Relevant SDGs

Risk Management

We have developed a risk management system which enables us to accurately determine various risk factors and respond to them appropriately and promptly.

Risk Management System

With Administration Division Director as risk management manager, we have been working on minimizing
risks associated with compliance, information security, incidents, and disasters that may seriously affect
Hirata Group's business operations. Furthermore, we set up Risk Management Committee for further
enhancement of our integrated risk management system across the entire Group. The Risk Management
Committee oversees integrated risk management, including preparation of risk response policy andrelated rules, risk information collection/analysis, and development of countermeasures such as loss
avoidance/reduction/transfer. Through the Committee's regular monitoring and risk management auditingof our operating organizations and group companies, we ensure that our risk management system isappropriately built and operated with continuous improvement.

BCP (Business Continuity Plan)

To ensure our business continuity in unexpected disasters and problems, we are promoting the BCP(Business Continuity Plan) for preventing, defending against, and reducing risks that are identified inadvance.
Regarding the new coronavirus, we took actions such as aid deliveries from Japan in liaison with our
subsidiaries in China (HAS and HME) and temporary suspension of business trip.
Then, with the spreading of infection across Japan, we launched a BCP Task Force and implemented
measures at each section responsible for business operations, human resources, premises, networks, andprocurement based on the government policy.
Consequently, Hirata Group has no employees infected as of the end of May 2020, with almost no
impact on our operations. We will continue our measures until the pandemic is over.
≪ Main measures taken ≫・Remote working
・Social distancing in factories, offices, and places for shared use
・Cancellation and postponement of business trip
・Temperature taking before going to work
・Distribution of hygiene supplies like masks and sanitizers
・Reduction of office meetings (utilization of video/Web meeting)・Regular disinfection of facilities and places for shared use
・Supplier impact survey

Information Security

Disinfecting regularly

In order to protect information and information assets (information devices and the like) from threatssuch as leakage and damage and to safely carry out business activities, Hirata Corporation is working todevelop information security management regulations and prevent leakage of confidential information andother similar incidents through systems and activities centering on the information security committee.

Export Control

In the global community, the importance of security trade controls has been increasing against the
backdrop of global threats (terrorism and the development of nuclear weapons, etc.). Hirata Corporation
has established the "Regulations for Security Export Controls" to help implement appropriate security
trade controls designed to maintain global peace and safety and has strengthened security export
control systems regarding the appropriateness of goods and technologies, responses to the revision oflaws, employee education, and internal audit procedures. We have also obtained the "special blanket
permission for export and services (program relating to use)" and the "special blanket permission forservice transactions" by which individual permission from the Minister of Economy, Trade and Industry is
not required with respect to some goods and services.
The Global Production Engineering Company

8Corporate Social Responsibility Report 2020

Social Report

Relevant SDGs

Together with Customers

As the best partner of our customers, we deliver reliability and satisfaction to theworld by materializing various customer requests for quality, safety, and productivity.

Quality Assurance

As part of quality assurance, Hirata is working on product quality improvement to deliver more reliable, safer
products.
■ For improved drawing quality
The Harness Drawing Control Section Meeting has been set up for
defect reduction and quality improvement of parts manufactured. At themeeting, the wire harness designers from the business divisions extract
drawing information necessary for manufacturing wire harnesses. The
extracted information is reflected in the HS* and internal manuals toimprove drawing quality.
* HS: Hirata Standard, i.e., our company standard

Division A

Section Meeting Oﬃce

(Quality Control Department)

Division C

Division B

・Collect harness

drawings
Harness Drawing
Control Section ・Extract necessary
information
Meeting・Scrutinize information
for standardization

Hirata Standard

Internal ISO manuals

Harness Drawing Control Section Meeting promotion system■ Assuring design reliability through reliability education (FMEA basics)
In January 2020, a reliability education was provided by an outside
lecturer for employees of design and quality assurance departments.
The education is intended to help them learn the FMEA* conceptCorporate
会社評価
Evaluation
leading to product reliability assurance and thus encourage FMEA
to be
incorporated at the conceptual design phase. This should increase ourdesign quality, allowing us to make our products even more reliable.
We are providing various education programs to upskill our Service
サービス
評価
Evaluation
employees to deliver safer and more secure products.
* FMEA: Failure Mode and Effect Analysis

Product
Evaluation
製品評価

FY20185

2018年度4

Evaluation
担当者 評価 of personin（営業）
charge (Sales)

3

FY2019

2
1
0
担当者
評価
Evaluationof person（設計）
incharge (Design)

Reliability education session by an outside lecturer
担当者 評価Evaluation of person（製造）
in charge (Manufacture)

技術評価
Technology
Evaluation

Customer Satisfaction

FY20172017年度We are working to improve customer satisfaction through the opportunity for each department to interact withcustomers, collecting customer's opinions and suggestions to improve our products, as well as our service support.
Every year, all Hirata Group companies distribute customer satisfaction surveys with a common set of questions
to all customers. Based on these valuable opinions, we will strive towards strengthening the service support andcooperation among departments in the future.
Customer satisfaction survey results for FY2017 to FY2019<Satisfaction weighted average score (5 points max.)>
Product
Evaluation
製品評価

Corporate
会社評価
Evaluation2017年度FY2017

Continual use

FY20185

2018年度4

Evaluation
担当者 評価 of personin（営業）
charge (Sales)

3<Continuity for the future>

No opinion

Will not use

FY2019

2017

77％

23％

2

2018

1

75％

16％ 9％

0
サービス
Service
評価
Evaluation

技術評価
Technology
Evaluation

担当者
評価
Evaluationof person（設計）
incharge (Design)

担当者 評価Evaluation of person
（製造）

2019

0％

86％
50％

3％
11％
100％

in charge (Manufacture)

The Global Production Engineering Company

9Corporate Social Responsibility Report 2020

Relevant SDGs

Together with Business Partners

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

Suppliers Meeting

In June 2019, Hirata held its FY2019 Suppliers
Meeting at the Ueki Cultural Center's large hallin Kumamoto City, with a record high number of
303 representatives from 186 companies. The
meeting proceeded to share Hirata's financial
results and trend, then each business division's
trend and policy, and at last the procurement
policy.
In addition, awards were granted to those
who made a great contribution to Hirata's
FY2018 production activities. Six Best Supplieraward companies and 11 Excellent Supplieraward companies were commended on thestage.

Welding skills workshop

In October 2019, the welding skills workshop
was held for 27 persons from 16 suppliers, at afactory of a company having some best welding
engineers in Japan. This skills training course will
be further improved to help both our welding
employees and suppliers' persons upskill for
better QCD.

VOICE

Let's boost our manufacturing competence to make progress day by day
Oyo Electric Co., Ltd.
Seichi Chaya, President; Noritaka Tanoue, Executive Director of Operations
We are developing, designing, and manufacturing measuring instruments,
mechatronics products, and medical equipment leveraging our electronic andoptical expertise to meet customers' needs.
Since our start of business with Hirata Corporation in 1996, we havebeen working on printed board implementation and harnesses at first, andnow control boards in addition to them. It is a great honor to receive the Best
Supplier award in 2019. We are very happy with the evaluation.
The world's leading Hirata demands higher quality. This drives us to carry out thorough quality
control at every process with a sense of tension, resulting in upskilling of each one of us. With this award
in mind, we keep going for the best quality any time along with Hirata's manufacturing competence bycontinuing the endless process of improvement to our operations.

The Global Production Engineering Company

10Corporate Social Responsibility Report 2020

Relevant SDGs

Together with Employees

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

Global Human Resource Policies
By combining our basic policies concerning the mechanisms
and operations of the Hirata Group's various common systems
as "Human Resource Policies," and implementing specificmeasures based on these, we will strengthen our commitment
to being a company where employees can act with pride andsatisfaction through their work.

I

Respecting human rights and diversityⅡ R activities in compliance with applicable lawsHand regulations

We shall respect the individual character and the humanrights 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 ofworkers. We definitely do not employ child labor or forcedlabor. 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 otherlegally protected attributes.

We shall comply with all applicable laws and regulationsof each region regarding the employees' rights. The rights
of workers to associate freely, join or not join labor unions,seek representation, and join workers councils in accordancewith local laws shall be respected.

Ⅲ

Fair, equal, and transparent HR system

Ⅳ

Support for skill development

We aim for a fair, equal and transparent HR system.
Based upon our Corporate Philosophy of "making thebest use of its members", we shall positively support for
professional development.

Support for Capability development

Hirata Corporation thinks, according to its
management policy of "making the best use ofits members", that one of the most important
issues is to provide each employee with theopportunities to challenge and grow, anddevelop the environments that enable them tofully exercise their abilities.
It is now three years since the launch of theyoung employees overseas dispatch program,and the members selected for the first year are
beginning to come back. They sure will play
an active role making use of their experience.
This program will continue for fostering young
employees.
This fiscal year also focused on the
improvement of basic skills across theboard. Many employees took the increased
opportunities to participate in various basic
training courses of specific goals, like thinking
training.
We will be improving our human resource
development both in quality and quantity, so that
we can fully satisfy the expectations of interested
parties around us.

VOICE

Communication skills and speed make good relations
Keisuke Teramoto#1 Engineering Department, #2 Kumamoto Business Division #2 Business Unit
In Singapore, I involved in mechanical design through the first year, then in sales for thesecond and third years. This experience taught me how important thecommunication skill is. I rediscovered the importance of exchanging
thoughts and ideas accurately.
Singapore uses English as a common language. Among those who are
not English native speakers, I tried to speak in as simple English as possible,
and sometimes in Singlish. I think this helped me establish good relations
both inside and outside the company. Sales activities need a variety ofcommunication approaches with customers, in-house departments, andsuppliers. I have rediscovered that speed matters in these activities. If something got stuck at me, the project
would come in late. And if it is at the sales stage, it may lead to an opportunity loss. I will be working hardon my role making use of my experience to contribute to our Group's development and prosperity.
● Transferred from April 2017 to March 2020

● Transferred to Hirata FA Engineering (S) Pte. Ltd. (Singapore)

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11Corporate Social Responsibility Report 2020

Respecting human rights and diversity■ Efforts for Re-employment
Under the "Re-employment System" established in 2006, Hirata Corporation has entered into reemployment agreements with retired employees so that
Number of re-employed persons above 60 years old (Unit: persons)they can continue to apply their skills, utilizing their superior
RetiredRe-employment Re-employed
Fiscal Year
Employees
ApplicantsPersons
knowledge and experience. The number of workdays and
2015
13
9
9
hours is adjusted for each re-hired person's lifestyle by
2016
27
23
23
reflecting his/her wish and the work contents contracted.
2017
17
14
14
According to the April 2013 amendment to the Act for
2018
22
17
17
Stabilization etc. of Employment of Older Persons etc., our Reemployment System is now rehiring employees who wish to
2019
33
25
25
remain employed until age 65 beyond the retirement age.
■ Proactive Employment of Disabled Persons

Our disability employment rate in FY2019 was 2.16%,
nearly close to the legal rate 2.2%. We are actively
seeking opportunities to hire persons with disabilities
through participation in disability career fairs andWeb-based public relations. Hirata will continue its
effort to meet the legal rate.
■ Measures Against Harassment

Changes in Employment Ratio of Disabled Persons (%)

Legal Employment Ratio 2.2%

（％）

2.5
2.0

1.63％

1.5 1.74％
1.0

1.36％

2.16％

1.50％

We hold compliance training for employees (60
0.5
2015
2016
2017
2018 2019 (Fiscal Year)minutes/training, 12 times a year) and training for
newly appointed section chiefs and supervisors(240 minutes/training, once a year). Both include a training session on how to prevent power
harassment or sexual harassment. Furthermore, starting in FY2018, a 90-minute harassment
prevention class is provided once a year by an outside expert for all the employees to increaseawareness of harassment in general. We are striving across the board to create a pleasant,harassment-free work environment.
■ Retirement Ceremony

Since FY2019, the Retirement Ceremony has been redesigned from twice a year (June andDecember) to once a year (March, the end of fiscal year). This ceremony is an important
opportunity for Hirata to express its appreciation to all the people for their years of devoted
service to the company. For the retirees, it will mark a start of the new chapter in life, regardlessof whether they have chosen to leave or get re-hired.

Work-life Balance

In addition to our continuous commitment to work-life balance improvements including setting orcompensating leave-work-on-time days, we have further decreased the overtime work hours in thespecial clause under Article 36 (Agreement on Overtime) from 80 to 75 hours in response to thereform of working practices starting on April 2019 which legislates the annual overtime work hours
limited to 720 hours. Days on business trip are now managed on the basis of actual time to pay
more attention to the employees' healthcare. Furthermore, the interval time system put in practicelowered the company-wide average overtime work hours from 23.56 for FY2018 to 22.11 hours for
FY2019, achieving a 1.45-hour reduction. We will continue to take further measures to improve theemployees' work-life balance.

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12Corporate Social Responsibility Report 2020

VOICE

"My Work-life Balance!"
Kaori Nakayama , Human Resources Department
We are working on the improvement of work-life balance by carrying out various
overtime reduction measures, for instance, the interval time system and banning ofovertime on Wednesday, salary day, and bonus pay day.
Now we have a gym in our new factory for employees health promotion. The gym is equippedwith professional training machines. You can also get an exercise tailored to you by an external fitness
instructor. I am spending most of my work time for PC related work and feeling worn out, having not much
exercise. So, I started to work out at the gym following the instructor's special program every no overtime
Wednesday to refresh myself. The gym also provides an opportunity to communicate with people fromother departments usually with little contact. Exercising there has become part of my life, giving me theenergy to work.
I would like to keep pursuing my own work-life balance to boost motivation for work and make themost out of life.

Labor Safety and HealthWith the slogan, "All employee participation in zero accidents", Hirata has formed safety and healthcommittees in each plant and a company-wide safety and health committee, which oversees the whole
company, to promote systematic safety and health activities. Based on the annual plan, the workplacesafety has been further improved along the PDCA cycle of implementation, validation, and review,achieving no accidents with lost workdays in FY2019.
The company-wide safety and health committee receives reports from each department relating toactivities based on the annual plan, confirms the details of any industrial accident that occurs, discusses
how best to prevent any recurrence, and formulates and establishes new rules regarding safety andhealth. In the safety and health committee held at each plant, we implement safety and health patrols,
take corrective action according to the results of the patrols, and keep everyone informed of the contents
discussed at the company-wide committee. In addition, we strive to ensure the safety of the Company
and customers' plants by means of risk assessment and hazard prediction training (KYT) during themorning meeting held at each work site.
The supplier safety and health meeting is held every month for suppliers' personnel working at our
premises. This meeting shares information disclosed in the safety and health committee, and introduces
safety/health case studies while collecting suppliers' opinions and feedback.
During the annual National Safety Week in July, the executive officers walk through the factories forsafety patrol. A rigorous check is done from a managerial point of view to protect workers.

TOPICS

Handling work safety training provided

Responding to the increase of accidents during handling work in landtransportation businesses, we provided a safety training instructed byan outside safety expert from the Land Transportation Safety & Health
Association. During the session, our heavy-article loading operation was
actually done in the shop floor, and evaluated as a good example in whichsafety is ensured.

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13Corporate Social Responsibility Report 2020

Relevant SDGs

Together with Shareholders and Investors

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

IR Activity Policy

Hirata believes that a fair and equal pricing of shares is on the premise that information on investment
decisions are being shared appropriately in a timely manner. Therefore, we recognize the need to fairly,
equally, accurately, and quickly provide the investors with important company information that influences
investment decisions.
In the case of mandatory disclosure materials, such as annual securities reports, quarterly reports andmaterial facts or other company information, Hirata Corporation discloses the contents thereof correctly.
■ Holding information sessions for investors
With a purpose of publicizing Hirata Corporation and gaining investors,
we hold company information sessions and financial results briefing for
institutional investors, analysts, and private investors.
In FY2019, the seminar was held in Iwate, Fukushima, Akita, Kagawa,
Tokushima, Kyoto, Nagasaki, Shizuoka, and Kanagawa, attracting a large
number of local investors.

IR Tools

In addition to mandatory disclosure materials, such as annual securities reports and quarterly financial
reports, which are prepared under laws and regulations of financial instrument exchanges, Hirata
works to disclose the following materials on our website to allow shareholders and investors a deeper
understanding of our business.

1. Briefing documents for financial results
and quarterly
financialresults
These documents
explain thesummary offinancial resultsin each term
for an easier
understanding and are used as materials
for financial results briefing for institutional
investors in the final and second quarter
financial results.
2. Hirata Report
This report, forshareholders, describes
the business content,
results, plans andtopics for an easier
understanding and isissued and sent by mailafter the disclosure of the final and second
quarter financial results.

3. G eneral Meeting of Shareholders
These are materials used for explanations at
general meetings of shareholders.

4. "IR Information" on the Hirata Corporation
WebsiteThis page is a collection of information forour shareholders
and investors
with the intentionof promoting
understanding ofHirata Corporation.

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14Corporate Social Responsibility Report 2020

Relevant SDGs

Together with Local Communities

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.

Contribution to Local Communities, Providing Support
and Cheering for Hometown
Hirata Corporation will work to help the restoration of Kumamoto through the following community support
projects.
■Lecture given in Manufacturing Management class at Kumamoto
Gakuen University
On January 14, 2020, Hitoki Hongo, Global Business Headquarters
Division Director, gave a lecture in the class "Manufacturing
Management" by Kenji Matsuo of the Kumamoto Gakuen University(KGU). This was done under the comprehensive collaborationagreement between the Kumamoto Industrial Federation and
KGU for encouraging the students to learn about Kumamoto's
manufacturing industry. The lecture was attended by about 40
students, mostly sophomores who are becoming more aware offinding a job. Topics covered were Hirata's profile, history of growth,and year-by-year market environment and Hirata's response. The
lecture was closed with Hongo's message to "get your experienceand be eager to challenge while young".
■Shareholder Special Benefit Plan, Donation as Support for Restorationof Kumamoto Castle
Hirata has a shareholder special plan for post-earthquake reconstruction
assistance to Kumamoto.
A shareholder can donate 3,000 yen by choosing either of the followings:
・QUO card with donation for restoration of Kumamoto Castle
・Donation to Kumamoto City as funding for restoration of Kumamoto
CastleBy courtesy of 460 shareholders who agreed to the plan as ofthe end of March 2019, a total of 1,380,000 yen was donated to
Kumamoto City for restoration of Kumamoto Castle.

Copyright 2010 Kumamoto Prefecture Kumamon #K1761■Roasso Kumamoto, Hirata Thanks Match
On September 7, 2019, a thanks match sponsored by Hirata
Corporation was held as Roasso Kumamoto vs. Gamba Osaka
U-23 in the J3 Football League and gathered 16,027 spectators. In
2020, Hirata Corporation continues to support Roasso Kumamotoas a main sponsor with the people of the local communities.
■Sponsoring Kumamoto Castle Marathon
As an official sponsor of Kumamoto Castle Marathon in February
16, 2020, Hirata supported and assisted the event in Kumamoto.
Even in chilly, windy, and rainy weather, 36 employees
participated from Hirata and ran with all their might to thecheers.

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15

Corporate Social Responsibility Report 2020

Environmental Report

Relevant SDGs

Environmental Management

To realize a sustainable society, we are working hard to protect the environment.

Environmental Policy

We at Hirata establish environmental policies andpromote environmental activities in line with thepolicies. We will contribute to protect the global
environment by reducing the environmental loadin all aspects of our business activities, products,
and services.
Particulars of Our Environmental Policy
Hirata Corporation contributes to protecting the
global environment by reducing the environmentalload of all aspects of our business activities,
products, and services in order to achieve asustainable society.
① Working towards manufacturing products witha reduced environmental load, considering the
product lifecycle throughout its supply chain.
・Promoting energy-saving products
・Promoting recyclable design and manufacturingof products
・Reducing the amounts of harmful materials usedin our products and using substitutes② Abiding by environmental laws, treaties,
requirements and voluntary standards set as
needed. Also, developing coordination andcooperative relations with relevant government
agencies and contributing to the local society.
③ Striving to improve productivity and conserve
the environment throughout all our businessactivities and production processes, including
sales, design, manufacturing, installation, andafter-sales service.
・Reducing energy usage and the emission ofgreenhouse gases
・Reducing waste and promoting recycle
・Reducing harmful materials and using substitutearticle・Preventing environmental problems andpollution
・Preserving biological diversity④ Increasing environmental awareness throughimplementing education and publicity programs.
⑤ Reviewing the EMS regularly to enhanceenvironmental performance and striving forcontinuous improvement.

Environmental Management
System■S
 tructure of Promotion for Environmental
Management System
Hirata has built up a structure of promotion for
the Environmental Management System (EMS)
led by top management and environmental
management manager and obtained aninternational standard ISO14001 certification
at the Kumamoto, Kanto, and Kansai region
production bases.
■ Continual Improvements
The management conducts a management
review once a year to review the systemtaking into account the external andinternal issues related to the environment
management system and changes in theneeds and expectations of the interested
parties.
The person in charge in each section
embodies the output of management review
in the environment meeting to lead to
improvements.

Abiding by laws and regulati
ons and preventing pollution
Our environment-related regulatorycompliance is confirmed regularly at the
ISO Office and through ISO internal audit.
In addition, we have our own voluntarystandards in some areas to ensurecompliance.
We have had no environment-related
violations, incidents, or complaints in FY2019.
The annual wastewater measurement at all of
our factories verifies that the results are within
the standards defined in the Water Pollution
Prevention Law and each local government's
more stringent effluent standard.

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16Corporate Social Responsibility Report 2020

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

Item

Long-term Goals(FY2018-2020)

Reducing CO2 emissions

By the end of 2020, we will
decrease more than 3% of
the amount of CO2 emissions
compared to that of FY2017
when measured based on theactual production amounts.

CO2 emissions per actual
production reduced by 27%
over FY2017. The energy inputs
per actual production increased
by 2% over FY2017. Somelightings were switched to LED
and compressors were replaced
to reduce energy usage.

◯

We continue to make efforts
to reduce the CO2 emission
amount by introducing
energy saving equipment
and strengthening the energy
management practices.

Provision of Products with
Reduced Environmental
Load

Development of environmentfriendly design (energy
saving, space/weight saving,
substitution of harmful
materials)

We conducted productassessments to have achievedenergy and space/weightsaving products.

○

We continue to conduct
product assessments.

Inspection of Chemical
Substances Contained in Our
Products

The control system of chemical
substances in products put
into operation; the scopeof investigation on chemical
substances expanded. Producthazardousness checked by
the investigation on chemical
substances in products.

○

The method of investigation
on chemical substances in
products will be reviewed
to enhance our chemical
substances investigation.

Managing chemical
substances contained in
products

FY2019 Accomplishments Evaluation

FY2020 Plans

Environmental Performance
We are pursuing to reduce the environmental load and achieve our environmental goals by understanding theimpact made by our business activities.
■ Totalenergyinput
Total energy
input (Incrude oil equivalent)(kℓ)
Energy consumption per unit (kℓ/million yen)
Total energy input (In crude oil equivalent)(kℓ)

Energy consumption per unit (kℓ/million yen)

3,222

4,205

4,182

4,205

4,182

0.080

0.066

0.066

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

■ Consumption
PRTR Substances
Consumption of PRTRof
Substances(kg)
Amount of PRTR Substances per hundred million
Consumptionof PRTR
Substances(kg)
JPY actual painting
production(kg/million
yen)
Amount of PRTR Substances per hundred million
JPY actual painting production (kg/million yen)

94,30982,319

3,587

3,587

3,222
0.080

■ Amountof water
input
Amount of water
resourcesresources
input (㎥)

2,955

82,319
203.4

2,955

203.4

0.060

0.062

0.061

0.060

0.062

0.061

94,30980,70280,702
148.9

148.9

115.6

115.6

63,08063,0808,190

54,374109.1

54,374
112.8

109.1

112.8

5,809
37.4
5,809

58.9
8,190

6,681

6,681
40.9

58.9

40.9

37.4

5,241

5,241
27.8
27.8

4,384
28.2
4,384
28.2

FY2015FY2016FY2017FY2018FY2019FY2015FY2016FY2017FY2018FY2019FY2015FY2016FY2017FY2018FY2019FY2015FY2016FY2017FY2018FY2019FY2015FY2016FY2017FY2018FY2019FY2015FY2016FY2017FY2018FY2019■ Amount of CO2 Emissions
CO2 Emissions (t-CO2)
CO2 emission per unit (t-CO2/million yen)
CO2 Emissions (t-CO2)
CO2 emission per unit (t-CO2/million yen)
8,785
7,354

8,785

8,111

8,111

7,354

0.139

0.139

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

6,860

6,860

0.182

0.182

■ Industrial Wastes

4,068
0.116

0.119

0.116

0.119

4,068
0.084

671

675

1.06

671
1.06

1.06
428

1.06

675
0.97
0.97

428

0.084

490

381

490
0.85

381
0.79

0.85

0.79

FY2015FY2016FY2017FY2018FY2019FY2015FY2016FY2017FY2018FY2019FY2015FY2016FY2017FY2018FY2019FY2015FY2016FY2017FY2018FY2019

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

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17Corporate Social Responsibility Report 2020

Relevant SDGs

Environmental Conservation in Business Activities

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

Environmental Load

Environmental loads in FY2019 are as follows.

Inputs● Energy
Electricity……………11,220K kWh
LPG………………………………… 56t
Gasoline… ……………………… 3t
Kerosene………………………… 21t
Light oil…………………………… 26t

Hirata Corporation Business Activities●Design anddevelopment●WastesIndustrial wastes… ………… 381t
General wastes………………… 19t
Valuable resources………… 687t

● Procurement●Water Resources
Underground water…… 45,782㎥
Clean water… ………… 8,592㎥●Chemical Substances (PRTR Substances)
Toluene… ………………………2.8t
1,3,5-trimethylbenzene… ……0.6t
Xylene… …………………………0.3t
Others… …………………………0.7t●Production
Processing
Coating
Assembly●Chemical Substances
PRTR substances… ……………4.4t

Outputs●Emissions in the Atmosphere
CO2 … ………………… 4,068t-CO2

Environmental Accounting

The below is a status of environmental preservation cost.We categorize these into investment andcost concerning the "Environmental Accounting Guidelines" by the Ministry of the Environment.

(Unit: thousand yen)

Categories

Major Activities

Cost for preventing
pollution

Investment

Cost

・Rain runoff preventive measures
・Electric dust collectors introduced

22,393

7,645

・Installing energy-saving equipment

9,160

71,291

・Disposal of general and industrial
wastes－23,785

Upstream and downstream costs

・Investigation of chemical substances
contained in products

－

7,714

Administration cost・Maintenance of environmental
management system
・Environmental measurement
・Environmental education－

30,185Social activity cost・Nature conservation; beautification
・Donations to environmental
protection groups

－

1,286

31,553141,906

Business area cost

Global environmental
protection cost
Cost of resource cycle

Total

TOPICS

Ezu Lake cleanup activity
As part of our biodiversity protection effort, some of the Hirata employees
participated in the Ezu Lake cleanup activity hosted by the Kumamoto
Prefectural Environmental Conservation Council. The Hirata team weeded out
adventive plants together with other participants from member companies,
learning the importance of water conservation activities. Hirata will continue
its biodiversity protection effort through the Ezu Lake cleanup activity.

Cleaning up hand in hand

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18Corporate Social Responsibility Report 2020

Relevant SDGs

Environmental Consideration for Products

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

Environmentally-Friendly Products■ High-speed transfer platform
We have developed a high-speed transfer platform as an integrated systemwith atmospheric and vacuum environments for use in semiconductor
production process.
Equipped with a multi-stage load lock chamber that can accommodate
25 wafers for environmental care, this high-speed transfer platform canreduce the number of chamber gas exhausts to one-25th and nitrogen gas
consumption by 50% compared to the conventional single-wafer model. The
wire usage is also cut by over 30% by reorganizing the structure and layoutof the control parts inside the equipment, achieving resource saving. Moreover, the number of touches to thework is decreased by adding a traveling axis, employing a single, 4-arm atmospheric transfer robot rather than
two robots. The consequence is added longevity of the products and waste reduction.

VOICE

Using our own environmentally-friendly products
Toward human-friendly product development
Our high-speed transfer platform uses home-grownenvironmentally-friendly FOUP opener and vacuum transfer
robot. Equipped with our own atmospheric transfer robot andaligner and in-house processed aluminum chamber, this highspeed platform is a product based on our own components with #1 Equipment Business Division, #3 Business Unit
Sales Engineering Department
high throughput, low particle, and energy conservation.
This development all started with an intention to appeal our Junichi Hirakida (right)
technical expertise at a trade show. Improvement to equipment #1 Engineering Department
configuration/robot motion and the resultant production
Yusuke Senoue (center)
efficiency gain led to elimination of need for the robot to#2 Engineering Department
move an extended period of time and reduction of power
Ryuji Nagase (left)
consumption. In the limited time between day-to-day operations,
we had discussions with various departments from configuration to design every day and solved problemsby trial and error. This product is a fruit of Hirata's company-wide coordinated effort.
As engineers, we will continue with improvements in a safety-conscious, energy-aware manner todeveloping more human- and earth-friendly products.

Managing chemical substances contained in products

In order to respond to chemical substance related laws and regulations in Japan and overseas, including
European RoHS Directive *1 and REACH Regulations *2, we are strengthening management of chemical
substances contained in our products around those related to semiconductor and medical equipment aswell as mass-produced items.
In FY2019, we introduced the Control System of Chemical Substances Contained in the Products andput it into operation. This has allowed us to investigate into a wider range of targets than before. With thesystem now in full-scale operation and thanks to suppliers' cooperation, we were able to further proceed
the survey on chemical substance inclusion status. The system will be improved for higher efficiency to
reduce suppliers' load in investigation.
*1 RoHS Directive: Regulations on chemical substances in EU *2 REACH Regulations: Chemical substance management regulations in EU
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19

Hirata Corporation

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are used to ensure legibility
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