Torishima Report 2019

100th anniversary special website
Visit this site for Torishima’s 100-year
history, 100th anniversary projects byemployees, the Pumpride Quiz, and more.
https:www.torishima.co.jp/en/100/

The electricity used to print
this report is converted by
100% green power (windpower).

TORISHIMA PUMP MFG. CO., LTD.

Tel: +81-72-690-2308
https://www.torishima.co.jp/en/

Torishima Report 2019
Fiscal 2018 (From April 1, 2018 to March 31, 2019)

To ri s h i m a ’s M i s s i o n

Torishima’s 100-Year History

Energy-Efficient Solutions

We contribute to greater efficiency in plants andother infrastructure by supplying high-efficiency
pumps and other energy-efficient products,
and by providing energy-efficient solutions forpumping equipment and pumping stations.

Committed to pumps for 100 years,
we’ll keep evolving andmaking the world a better place.

Providing Safety and Reliability

Our state-of-the-art technology ensures safety
under all conditions.

2002

Launched Torishima Global Team
(TGT), made full-scale entry into
overseas markets, and establishedsales bases in the Middle East,
Europe, and the U.S.

1979

Established first overseas
office in Singapore.

1961

1983

Succeeded in the domestic
production of glandless boiler
circulation pumps forsupercritical boilers.

Manufactured the first horizontal
multistage ring section pump
(HD type).
Gaining momentum from this,
Torishima entered the markets
for industrial and off-grid power
generation. Our products wereeven adopted for supercriticalapplications.

2010s
2000s

1990s

1949
1941
1927

Agricultural-use pumps won
first prize in a competition
sponsored by the Ministry ofAgriculture and Forestry inJapan.

Relocated the head office
factory to the current site
(Miyata-cho, Takatsuki).

Began systematic research
into mechanical seals,
earlier than any othercompany in Japan.

1980s
1970s
1960s

1940s

1919
1919

The birth of Torishima
Seisakusho (“Works”), a
pioneer in pumps.

Amid growing demand fordomestically manufactured
pumps, Torishima began
production of boiler feedpumps. Very difficult to design,these were the main pumps
used in thermal power plants.

Promoted Eco-Pumps
under our energy-efficiency
initiative, “Go Green with
Pumps”.
In 2015, our “Go Green with
Pumps” initiative won thehighest honor—the Ministerof Economy, Trade andIndustry Prize—in Japan’s
Energy Conservation Grand
Prize program.

2018

Released TR-COM®, amonitoring system that
supports the day-to-day
management of rotatingmachinery such as pumps
through IoT.

1990

1981

1955

1934

2010s

Established Kyushu Torishima in
Saga Prefecture as a manufacturingbase for small standard pumps.

1950s

1930s

On August 1, 2019,
we open the door
to our next century
of business.
Our evolution
continues.

Received orders for ultra-large
adjustable-vane verticalaxial-flow pumps, allowing us
to make inroads into largescale national water andsewerage projects.
In 1957, received orders foradjustable-vane verticalaxial-flow pumps for what wasthen the largest drainage
pumping station in the East.

Listed on the First
Section of the Tokyo
Stock Exchange.

1975

The oil crisis of 1973 caused
domestic demand to fall.
Nevertheless, Torishima focusedon exports (mainly for the Middle
East and Southeast Asia) andreceived a steady flow of orders.

1985

Established P.T. Torishima Guna
Indonesia, our first overseas pumpfactory.

2010s

Established service facilities in the
U.K., U.A.E., India, Southeast Asian
countries, and the U.S. to expand
the service solutions business. In
2012, established a pump factory in
Tianjin, China.

Seawater desalination plant in Saudi Arabia

1

Torishima Report 2019

Torishima Pump Mfg. Co., Ltd.

2

Torishima’s 4 Business Domains

Contents

Torishima is an expert in pumps. We develop and supply pumps for various industry and infrastructure
applications. We also provide comprehensive pump solutions ranging from the engineering, procurement, and construction of pumping stations to their operation and maintenance.

Torishima’s 100-Year History ��������� P.1
Torishima’s 4 Business Domains ������� P.4

Providing high-efficiency and reliable engineered
pumps that respond to customers’ increasingly
advanced and diversified needs

Financial and Non-Financial Highlights ���� P.5
Progress in ‘Beyond 100’ 2019
Medium-Term Business Plan��������� P.6
Management Strategy andMessage from the President ��������� P.7
News in Fiscal 2018 ������������ P.11
ESG
Environment ��������������� P.13
Society ����������������� P.15

Torishima supplies
highly engineered
pumps for a wide range
of applications such as
power plants, seawater
desalination plants,
petrochemical plants, andother general industrial
plants. We continuallyrevise and improve ourtechnology to meet ourcustomers’ needs.

100th anniversary logo
Theme: Smile Together‌The
two zeros of ‘100’ in our logo resemble ‘infinity’ (∞) tosignify our never-ending efforts to grow and contribute tosociety.
‌The two circles in our logo—representing both ‘100’ andthe infinity symbol—are drawn to represent a pump and aface. The message is that our pump business brings smiles
to people by providing water, safety, and reliability.
The logo is blue because the color represents water,‌
progress, and safety and reliability. Like water in a pump,
the logo represents the ongoing virtuous circle connecting
Torishima to its customers.

Offering well-proven expertise and experience as an EPC(engineering, procurement, construction) contractor
Not just a pump supplier, Torishima has a long history of supplying
pumping stations. We have been providing a turnkey service to ourcustomers whereby we can design, engineer, procure, construct,and commission all the equipment within a pumping station.

Projects
High-Tech
Pumps

The 130 designs submitted by our employees were narrowed down to justfive, which all employees voted on to choose the favorite.

Governance ��������������� P.17
ISO Certification ������������� P.19

4 Businesses
Centeredon Pumps

Service
Solutions

Renewable Energy andthe Environment

Directors and Executive Officers ������� P.20
Financial Section
Financial Data from the Past 11 Years ���� P.21
Consolidated Financial Statements ����� P.23

Corporate Data �������������� P.28

The Sustainable Development Goals (SDGs), which were set
by the United Nations, call on companies to use their businessand technologies to help solve issues facing the world andhumankind. Torishima is responding to this call by taking
action through business and social contribution and byfulfilling its corporate mission. (The following pages of thisreport show the icons for each of the SDGs that Torishima is
contributing to.)Contributing to a low-carbon society throughthe use of renewable energy

Maximizing the life span of plants with integrated
service solutions

We offer customers total support in the design, installation, andmaintenance of facilities such as wind power and mini/microhydropower systems.

Torishima is committed to providing the highest-quality aftermarket
services. Our innovative solutions can enhance performance andincrease the life span of pumps. This allows operators to maximize
efficiency, reduce maintenance costs, and conserve energy.

Editorial Policy
We publish the Torishima Report, which communicates to the
public Torishima’s corporate value, including the company’s
financial and non-financial elements. Please refer to our
website for further information of the company.
Financial Data Reference Source
The financial results (including consolidated financial
statements) in the Torishima Report were taken from thesecurities report for the year ending March 31, 2019. For otherfinancial data, including the securities report and financial
statements audited by a third party, please visit the IR sectionof our website.

Organizations Covered
This report covers the activities of Torishima Pump Mfg. Co., Ltd. and its consolidated
subsidiaries. Some of the information is on Torishima Pump Mfg. Co., Ltd. only.
Period Covered
The report basically covers the financial reporting period from April 1, 2018 to March 31,
2019. For information on items occurring after April 1, 2019, the date is included on therelevant page.
Referenced Guidelines
Torishima has endeavored to make a report that will generate unique value for thecompany. We referred to the International Integrated Reporting Framework published by
the International Integrated Reporting Council (IIRC) and the Environmental Reporting
Guidelines (2012 version) published by the Ministry of the Environment, Japan.
Cautionary Statement with Regard to Forward-Looking Statements
The data and forward-looking statements disclosed in the Torishima Report are based on
decisions made and on information obtained up until the day this report was published.
The forward-looking statements are subject to change due to various factors, and they
do not guarantee the attainment of objectives, forecasts, or future business performance.
The information in the report is subject to change without prior notice. Therefore, readers
are cautioned to use the information in the report at their discretion while referring to—orcomparing the report with—other sources of information. Torishima bears no obligation
whatsoever to compensate for any damages that may occur as a result of using thisreport.

Torishima’s Mission and Vision
In marking its 100th anniversary, Torishima updated its vision and mission so that they serve as a guide for our next century.

The Mission

The Vision

Passion for our Products and Services.
Evolving to meet the demands of an ever changing world.
Teamwork : Combining our skills to achieve our common goal
Diversity : Embracing diversity to achieve success and maximize our global presence
Professional : Fulfil our duties and responsibilities to provide the best service possible
Clarity : Working with integrity, transparency and sense of social responsibility
Enthusiasm : Our success is linked to our passion and enthusiasm throughout our organization
Innovation : Never stop challenging to provide creative solutions to our customers

3

Torishima Report 2019

Torishima Pump Mfg. Co., Ltd.

4

Net Sales (millions of yen)

51,76851,304

51,76851,768Orders Received (millions of yen)
43,48342,878 Received
42,233
Orders(millionsof yen)51,30442,87842,87843,48342,233

43,48342,233Operating Income (millions of yen)

44,41445,381

44,41445,381

44,41445,38140,479Net Sales(millions of yen)
Net Sales (millions of yen)
46,50146,50140,479Note: Fiscal years ended March 31.

48,154

1,731

Operating Income (millions of yen)
1,462
Operating Income(millions of yen)

48,154
48,154

1,257

1,462

40,479

1,462
400

373

1,731
1,731

1,257
1,257

FY
2014

FY
2015

FY
2016

FY
2017

FY
2018

FY
2014

FY
2015

FY
2016

FY
2017

FY
2018

400
FY
400
2014

373
FY
373
2015

FY
2016

FY
2017

FY
2018

FY
2014
FY
2014

FY
2015
FY
2015

FY
2016
FY
2016

FY
2017
FY
2017

FY
2018
FY
2018

FY
2014
FY
2014

FY
2015
FY
2015

FY
2016
FY
2016

FY
2017
FY
2017

FY
2018
FY
2018

FY
2014
FY
2014

FY
2015
FY
2015

FY
2016
FY
2016

FY
2017
FY
2017

FY
2018
FY
2018

FY2018:Domestic and overseas orders grew steadily,
exceeding targets. Notably, orders from Asianand Middle Eastern countries contributed
greatly.

FY2018:Public-sector and private-sector sales wereabout the same as last year. Overseas sales
increased significantly, and sales as a whole
exceeded targets.

Net Income or Loss Attributable to
Owners of the Parent (millions of yen)

Net Assets per Share (yen)2,183toNet Income or Loss Attributable

Net Assets per Share (yen)Net
Assets per Share (yen)1,308.22

1,308.22

Net
Incomeor Parent
Lossto
Ownersof the(millions of yen)
1,532 Attributable
Owners of the Parent (millions2,183
of yen)854△2,422

1,532

Equity Ratio (%)
Equity Ratio (%)

1,270.43

854△2,422FY△2,422
2015

FY
2016

50.0

48.7

48.9

47.3

47.7

50.0

48.7

48.9

50.0

48.7

48.9

47.3
47.3

47.7
47.7

FY
2018

FY
2014

FY
2015

FY
2016

FY
2017

FY
2018

FY
2014

FY
2015

FY
2016

FY
2017

FY
2018

FY
2014
FY
2014

FY
2015
FY
2015

FY
2016
FY
2016

FY
2017
FY
2017

FY
2018
FY
2018

FY
2014
FY
2014

FY
2015
FY
2015

FY
2016
FY
2016

FY
2017
FY
2017

FY
2018
FY
2018

Manufactured Capital (millions of yen)
Capital investment
Non-Financial Highlights●

Manufactured Capital (millions of yen)
1,825
Manufactured
Capital(millionsof yen)
1,636
1,627
1,636
1,599
Capital investment
Depreciation and amortization

●

1,636

1,561
1,391
Capital investment
1,561
1,3911,561
1,391

1,221

The Torishima Group is implementing its Medium-Term Business Plan, which runs from fiscal 2017 to 2019, the year of
Torishima’s 100th anniversary. In the three-year period covered by our ‘Beyond 100’ 2019 Medium-Term Business Plan, we
will complete measures we have been implementing up to now and prepare to build momentum for our second century ofbusiness. In the process, we will improve our fundamental strengths so that we can withstand external environmental factors.

2019 Medium-Term Business Plan

Depreciation and amortization

1,0841,599

1,636

1,599

883 1,636

Plan Result

44.5 45.4

Plan Result

46.0 48.2

Plan

400

6

5.4%
200

3.6%

0

FY20172

FY2018FY2019(100th anniversary)

Torishima’s aim
Develop world-leading productsthat offer energy efficiency, safety,
and reliability, and create abusiness model to this end

Long-term
challenges

Innovative
Capabilities

1,825
1,6271,825
1,627

Global Strength

658

658

484

453

430

453

430

482

658
484
484

883

453

430

482
482

FY2015FY2016FY2017FY2018FY2014FY2015FY2016FY2017FY2018FY2014FY2014FY2015FY2015FY2016FY2016FY2017FY2017FY2018FY2018FY2014FY2014FY2015FY2015FY2016FY2016FY2017FY2017FY2018FY2018

Improve the company’s
fundamental resilience to external
environmental factors

Productivity,
Work Process
Quality

After-Sales
Service
Capabilities

In order to survive fierce global competition, we invest aggressively in production facilities, related equipment, software, and R&D.
For example, we are expanding our service bases overseas.
Governance

Global Network

Torishima’s after-sales service network
covering 13 bases worldwide
U.K.

Malaysia
Indonesia

5Torishima Report 2019

4

2.8%

Intellectual Capital (millions of yen)Intellectual
Capital (millions of yen)
R&D
expenditure● R&D expenditure

FY2014

U.A.E.
India Thailand

FY2017

8

46.0

883

Saudi Arabia(billions of yen)

600

Note: Fiscal years ended March 31.

R&D expenditure

1,084
1,084

China

2019 Medium-Term Business Plan

Target:Operatingprofit margin
10%or higher

FY20260

FY2018FY2019Plan

ResultPlan

ResultPlan

Orders received

44.0

42.2

45.0

51.8

46.0

Net sales

44.5

45.4

46.0

48.2

46.0

Operating income

2.0

1.3

2.0

1.7

2.5

Ordinary income

2.5

1.5

2.0

2.3

2.5

Net income attributable toowners of the parent company

1.8

0.9

1.4

2.2

1.8

Japan
Taiwan (Facility preparation underway)

Philippines
Singapore

Targets of2019 Medium-Term Business Plan

U.S.

March 2018 Established Torishima Service Solutions Malaysia Sdn. Bhd.
(Malaysia)
June 2018 Established Torishima Service Solutions Formosa Co., Ltd.
(Taiwan)September 2018 Established Torishima Service Solutions of Michigan LLC(Michigan, U.S.)

Main efforts in fiscal 2018

• Enhance core pump products,
introduce new products

Enhanced pumps for desalination plants, largecapacity water transmission pumps, and pumps forpumping stations
P.12• Develop new systems for theafter-sales service market by utilizing
technologies such as IoT and 3D

Launched sales of TR-COM system• Build an optimal global production
system (plants in Japan, China,
Indonesia, India)

Continued technology transfer to manufacture boiler
circulation pumps for power plants in India. Pumps
were manufactured locally and their performancewas confirmed• Use state-of-the-art equipment toboost productivity and expand
production capacity

Upgraded and installed equipment in head office
factory; boosted productivity• Firmly establish and continuously
improve process innovation

Improved systems for information sharing while
introducing RPA in various departments andpromoting digitalization• Cover more regions (Americas,
Southeast Asia)

Established subsidiaries in Taiwan and the U.S.

P.11

• Increase number of supervisors andtrain them

Expanded the number of supervisors to 45• Have service solutions businessaccount for 35% or more

Achieved a 35.6% rate in fiscal 2018

• Increase number of products that canbe serviced

Implementing and expanding sales in servicing of
small/medium steam/gas turbines in Indonesia• Improve viability of Board of Directors

Identified problems with Board of Directors, built andput into operation system for reforming Board of
Directors• Introduce performance-based
compensation system

Introduced transfer-restricted stock compensation for
directors. Plan to expand it to executive officers

Intellectual Capital (millions of yen)
Depreciation and amortization

1,221
1,636

2019 Medium-Term Business Plan

Torishima’s long-term challenges and measures towards achieving the 2019 Medium-Term Business Plan

FY
2017

FY2015:
FY
FY
FY
FY
FY
Incomefell due2015
mainly 2016
to transient
factors2018
including
2014
2017
FY
FY
FY
FY
FY
exchange-rate
lossesandinvestment
2014
2015
2016
2017 losses.
2018
FY2018:
Profits grew significantly due to a reduction intax expenses, which was caused by a decreasein valuation allowance of deferred tax assets
and a reversal of deferred tax liabilities.

1,221

1,270.43

854

405
405
FY
2014

Equity Ratio (%)

1,221.94 1,240.33
1,308.22 1,179.57
1,240.33 1,270.43
1,179.57 1,221.94

2,183

1,532

405

1,240.33
1,179.57 1,221.94

FY2014–2016
Following a thorough revamping of profitability,
profits recovered and in FY2016 rose substantially.
FY2018:Targets were mostly achieved thanks toincreased non-consolidated revenue and solid
growth of overseas service centers.

Progress in

Operating profit margin (%)

51,30446,501

Sales (billions of yen)Orders Received (millions of yen)

Financial Highlights

P.11• Strengthen management of worldwide
Reinforcing management of subsidiaries
subsidiaries

Build a flexible corporate
infrastructure (mechanisms,
people)Human
Resources• Reform working styles

Moving forward with three pillars of reform—
operations, systems, and awareness• Promote diversity (improve work
environment for women and foreign
nationals)

Improving working environment for all employees• Hire and foster globally mindedpeopleForeign nationals accounted for 42% of employees(on consolidated basis) in fiscal 2018. Expanded
training for overseas employees at head office.

P.12

Torishima Pump Mfg. Co., Ltd.

6

Management Strategy and Message from the President

Embarking on our second century
in business.
We continue to grow whilst keeping
our core values ofcontinual contribution to society.

President and CEO

Kotaro Harada

Surpassing targets for orders received
and net sales, almost reaching ourgoal on operating income, andachieving a smooth transition to athree-division business model.
Torishima completed the second year of our 2019
medium-term business plan. Our performance infiscal 2018 was strong right from the start of the firstquarter. In particular, our orders received totaled¥51.8 billion thanks to increased global demandprimarily in Asia and the Middle East. Thus, wewere able to surpass our target by ¥6.8 billion
and achieve 22.6% year-on-year growth. Further,
an increase in overseas sales helped boost our
net sales to ¥48.2 billion, which is a 6.1% yearon-year increase. Operating income increased
37.7% year-on-year to ¥1.7 billion as a resultof steadily recovering non-consolidated profit
margins. As a result of this strong performance,
we were able to pay shareholders both a regularinterim dividend and year-end dividend of ¥9, as
7Torishima Report 2019well as an additional ¥7 dividend commemorating
Torishima’s 100th year of business.
Also going smoothly is the system of three businessdivisions—Public Sector Division, Private Sector
Division, and Global Sector Division—which welaunched in April 2018. This system integrates sales,
engineering, installation, and after-sales service into
each division, making smoother communicationand faster decision-making possible. This way, we
can meet the diverse needs of our customers moresmoothly and precisely.
Business performance within our overseas service
bases, including Torishima Service Solutions
Thailand (TSST), established in fiscal 2016, andTorishima Service Solutions Asia (TSSA), which
underwent relocation and expansion in fiscal
2017, has also continued to grow steadily. Thishas been further enhanced by the addition in
fiscal 2018 of two new service bases: Torishima
Service Solutions Formosa (TSSF) in Taiwan andTorishima Service Solutions Michigan (TSSMI)

in the United States. With such growth within our
global network, we have seen a 21.8% year-onyear increase in service orders received, andour service solutions business has expanded toencompass 35.7% of our total business.
The outlook for the coal-fired power generation
market remains grim. On the other hand,increased crude oil prices have spurred demand
for water-related projects in the Middle East. We
have received orders for numerous pumps in theregion, including those for large-scale watersupply projects and seawater desalination plants
in Saudi Arabia. This is a positive reflection on thetechnological strength and reputation for reliability
that Torishima has cultivated over its many yearsof business.

Contributing to innovation in
Japanese manufacturing with the
TR-COM
Currently, an ever-accelerating fourth industrial

revolution is underway in a variety of different
industries around the world. It is being driven by thevast amounts of data gathered via the Internet ofThings (IoT) and analyzed by artificial intelligence(AI) and other technologies. Japan’s low birth rate
and aging population is causing labor shortages.
To support the continuing development of society,we must harness the innovations emerging from
IoT and AI. Of course, the manufacturing sector isno exception. In fact, it is the manufacturing sectorin particular where applying a combination of IoT
and AI is crucial to creating Japan’s future.
One of the ways that Torishima is helping meetthe need for new innovation is with the TRCOM rotating equipment monitoring system. We
launched this system in fiscal 2018, following
several years of development. TR-COM stands
for “Torishima Rotating equipment COndition
Monitoring,” with “COM” also standing for“COMmunication.” This service enables customers
to share with Torishima data on the condition of
their rotating machinery, so that this machinery
Torishima Pump Mfg. Co., Ltd.

8

Management Strategy and Message from the President

Work-style reform to change
employees’ mindset

TR-COM System Structure
Data isviewed online

Cloud network
Sensors gather
vibration andtemperature data

Data is collected
via smartphones
Data is managed
in a cloud network▲
b-Montor

Simple sensors

Mobile terminals

can be managed more efficiently. Our pumps areused not only for infrastructure such as power
plants or water and wastewater pumping stations;they are also used in production processes andcountless other processes across all industries.
While the fourth industrial revolution takes placein our customers’ industries, the TR-COM system
helps to ensure that a secondary process like daily
pump management can be carried out quickly,
easily, and cost-effectively. In November 2018, welaunched a 1,000-company campaign to provide
customers with opportunities to experience theconvenience of the TR-COM system firsthand.
Customers’ response to the TR-COM system
has been quite positive. Several companies
have already opted to introduce the system into
their power generation plants, factories, andother facilities. TR-COM reduces the amountof time required for machinery inspection andhelps ensure that problems are discovered early.
We also aim to have TR-COM use AI and othertechnologies to analyze the data it accumulates.
This will help us develop new services thatwill enable customers to innovate their work
processes. Although the TR-COM system has
only just been introduced, we are excited about
the tremendous potential it shows for the future.

Online viewing

the value chain are the processes with the least
profitability. Thus, over the past several years wehave focused on downstream service solutions
by expanding the number and size of our service
bases around the world, enabling Torishima to
be closer to its customers (localization). In thepast, shortages in manpower and experience
have hindered the effective management ofdata. But with the TR-COM system, you caneasily collect, analyze, and diagnose data. Thisenhances communication between Torishima
and its customers and improves the effectivenessof our services. Moreover, the data gathered by
the TR-COM system can be used to develop new
products and strengthen manufacturing. These
new products will then lead to new and better
services. By building a platform for generating thissort of virtuous cycle, we can continue to provide
high-value-added products and services that will
make Torishima irreplaceable in the eyes of ourcustomers.
ProfitLocalization (TSS)
Real-time systems (TR-COM)

Planning
anddevelopment

Building a target platform for
Torishima
According to the “smiling curve” concept, it istypically thought that the manufacturing andassembly processes that occur in the middle of
9Torishima Report 2019

Service solutions

Manufacturing

High

Parts
production

Low

After-sales
service

Sales

Manufacturing and assembly
Upstream
Far

Downstream
Near

Operational processes
End-users

The Administration Division supports theoperations of the business divisions. It established
the Work-Style Reform Promotion Group in April
2018. The Group has sought to introduce RPA
to handle simple office tasks in order to free up
employees for more creative work. It has promoted
the transition from paper-based to paperless
operations, and this has led to more flexible
working styles in terms of work location as well
as a more efficient use of space. Since April 2019,
we have launched pilot offices where we test out
different ideas aimed at improving work efficiency
and stimulating communication. Examples include
a hot-desk system and concentration cubicles.
Work-style reform is also a way of enabling us tobetter capitalize on diversity, which has long beena strength of Torishima. At present, our corporategroup comprises more than 1,500 employees ofroughly 35 nationalities. It is precisely because
our group contains so many different languages,
cultures, ways of thinking, and working styles that
we put such a strong emphasis on information
sharing and openness. But can we successfully
integrate our organizational structure to create
better working environments for everyone while
also fostering individual strengths and creativity?
Our challenge is to shift from “Diversity” to“Inclusion.”
These changes are also in preparation for
the relocation of our head office factory to a
new building scheduled to be completed in
February 2021. This new facility will incorporate
manufacturing facilities on the lower floors, andconcentrated office space on the upper floors
to eliminate the large physical distances thatcurrently separate our departments. It will also
include spaces for fostering ongoing debate anddiscussion, open information sharing, and thecultivation of communication channels. In order toeffect change in Torishima’s rigid infrastructure, wemust first effect a change in our own mindsets (softinfrastructure). Although it will involve a significant
investment, we firmly believe that instituting suchchange will foster a virtuous cycle in the long term.
This cycle will be driven by improved productivity,
greater customer and employee satisfaction, andan influx of talented new employees.

New integrated factory and office building (image)Conference roomand reception

Rooftop garden

OfficeOfficeOfficeOfficeHall (meetings)
Conference
Reception

OfficeService training center

Manufacturing
training hall

Reception
Entrance
and gallery

Rotor component fabrication area

Abnormal weather resulting from a changing
environment is becoming increasingly common
around the world. Because of this reality, we firmly
believe a key mission of our pump business is todeliver safety, reliability, and energy efficiency tosociety.
As Japan enters a new imperial era, we sense
history being made. And for Torishima there’s anadded milestone, as we celebrate our centenary
in business. The start of our 101st year in businessshould be seen as a milestone rather than adestination. We remain as committed as ever totackling challenges and finding ways to adapt andevolve, in order to fulfill our mission as a company
and achieve ever-greater growth. To all of our
stakeholders, in all of the many and varied ways inwhich you are connected to Torishima, I reiterate
my sincere gratitude and ask for your continued
support and understanding.

Torishima Pump Mfg. Co., Ltd.

10

News in Fiscal 2018
Let’s look at some Torishima initiatives from fiscal 2018 that improved our value.

TR-COM Rotating Equipment
Monitoring System
Torishima began supplying a system that monitors
the operational status of rotating machinery suchas pumps and fans. The system utilizes IoTtechnology and sensors attached to the machinery.
The sensors are battery operated and don’t needwiring. They can be set up in minutes. Data fromthe sensors is collected by a smartphone and canbe viewed either on that device or on a PC screen.
The system lets operators streamline the day-today management of machinery and monitor trends
in the machinery’s condition. As well as helping tocreate a positive work environment, this system
can be used to address issues such as an aging
workforce or a skills drain.
Starting November 2018, we launched a campaign
to let customers try TR-COM for free. In the trial,
sensors are attached to the customer’s equipment
and the collected data is used to check themachinery’s operational status. Many customers
have tried TR-COM, and orders have followed.
We plan to upgrade TR-COM with useful features.
One example is a function for managing maintenancerecords; another is improved functionality for using
data to predict malfunctions.

See the TR-COM video:
https://youtu.be/fnitNGzpMyg

Expanding Service Basesin Taiwan and the U.S.
Torishima has delivered many high-pressure
pumps and large pumps for thermal power plants.
In fiscal 2018, we established local subsidiaries in
Taiwan and the U.S. to provide on-site servicing
and overhauls of these pumps.
In June 2018, we established Torishima Service
Solutions Formosa Co., Ltd. in Taiwan. And in
September that year, we set up Torishima Service

11

Torishima Report 2019

Solutions ofMichigan LLC in
the U.S. We’ve
been supplying
pumps for over
15 years in the
U.S., the world’s
Torishima Service Solutions of Michigan LLC
largest power
generation market. In the past, we couldn’t provide
as much after-sales service as we’d have liked. But
the new subsidiaries will boost our after-sales
capabilities. Our service solutions will coverinstallation, field tests, pump maintenance, andsales of spare parts.
Today Torishima has 13 service bases around theworld: in Japan, China, Taiwan, Indonesia,
Singapore, Thailand, Malaysia, the Philippines,
India, the U.A.E., Saudi Arabia, the U.K., and the
U.S. Expanding our service network throughout
each country will help to improve our marketingand service activities in the local communities.
This will enhance our presence, boost customer
satisfaction, and lead to further business growth.

Rebuilding the Head Office Factory
Torishima haslaunched a
project to rebuild
the head office
factory and makeit earthquakeproof. The
concept of the
project is to
New integrated factory and office building(image)integrate thefactory and the office, with the aim of boosting
communication among those in the sales, R&D,
design, and production departments. At the sametime, the project seeks to create a more comfortableenvironment. This should help motivate employees
and boost productivity for the entire company.
March 2019 saw
us finish the firststep of therebuilding
project: awarehouse forstoring wooden
warehouse for wooden patterns
patterns used for New
completed in March 2019
casting. The newhead office factory is being built on the site of thisformer storehouse. It is scheduled for completionin February 2021.

Reforming Working Styles
Starting in April 2019, Japan is enacting a labor
reform bill that addresses work-related issues
faced by Japanese society. One issue is thecountry’s shrinking workforce caused by its low
birthrate and aging population. Another issue ischanging work styles that involve balancing workwith childcare or nursing care. Companies need to
do more than just improve productivity throughinvestments and innovations. They also need tocreate an environment where people have more
opportunities to work and where they can express
their capabilities and abilities.
In fiscal 2018, Torishima established a Work-Style
Reform Promotion Section. We have alreadylaunched three reforms to achieve an inspiring andvirtuous cycle in the workplace: operational reform;
systemic reform; and awareness reform.
First, for operational reform, we have introduced
RPA (robotic process automation) to automate
routine tasks. We are also eliminating the use of
paper wherever possible and digitizing and sharing
information to cut down on paper document
storage space.

Development and Design ofHigh-Head, High-Power Pumps
We have developed a range of high head(generated pressure) for water transmission
applications suited to delivering water long
distances over variable terrain. Compared toprevious large water pumps used for similar
purposes, our new pump has improved pressure
generation capabilities with high efficiency design.
In developing the pump, we performed repeatedstructural analysis using FEM (finite element
method) to determine the optimal configuration forachieving high-head capabilities. We also designed
the bearings to give the pump stable rotor-dynamic
performance. To achieve high efficiency, we
optimized the configuration of the pump’s internal
flow channel using our flow analysis technology.
This newly improved pump is being used in Saudi
Arabia in a project for which we received an orderin fiscal 2018. Demand for water transmission
pumps is expected to grow, mainly in the Middle
East, and we expect more new orders for our
pumps.

Secondly, systemic reform aims to bring about
diverse ways of working, unlimited by place ortime. To this end, we’re reviewing our work
regulations and systems. So far, we’ve introduced
staggered working shifts in the head office sales
department as well as an hourly paid vacation
system, to which all employees are entitled.
Lastly, to bring the above reforms to fruition, wemust change our conventional working styles. To
help employees buy in to changing their working
styles, we’re pursuing awareness reform. The head
office factory rebuilding project has given us an
opportunity to completely revamp the office layout,
so we’re trialing a hot-desk system. Not having
your own private desk can change an employee’s
attitude to work. It can also facilitate the digitizationof paper documents and the sharing of information,and it can ultimately energize communication
among different departments.
Structural analysis
using FEM

Torishima Pump Mfg. Co., Ltd.

12

ESG

Environment

Torishima focuses on contributing to the environment throughits products and business activities, while also lowering theenvironmental burden of all its business activities.

2 Reducing Waste
In fiscal 2018 at the head office factory, the amount ofwaste per production unit was down 1.3% year-on-

Torishima
Environmental Policy

Status of Fiscal 2018
Environmental Objectives

year, while the amount of waste rose by 4.0%.

— Philosophy —At Torishima, we believe that protecting the Earth’s
natural environment is a vital task that must be
addressed by all mankind. For the sake of the planet
and all of its inhabitants, our goal must be to cultivate anaturally beautiful global environment that is conducive
to comfortable living. Through our pumps and othereco-friendly products, we supply environmentally
sustainable systems that are engineered to enrich living
environments everywhere. We conduct production
activities so as to be in harmony with environmental
demands, and we offer products that have minimal
environmental loads. In this way, we are working tobring about developmentally sustainable societies thatcan support a healthy global environment well into the
future.
— Activities —To put the foregoing philosophy into practice,
we undertake the following activities:

By developing and supplying environmentally friendly
products such as energy-efficient pumps (highhigh-efficiency pumps), wind power systems, and mini/
micro hydropower systems, Torishima contributed tosaving energy and reducing CO2 emissions, as shown

13

Torishima Report 2019

30.0

Up
29.4 4.0%

29.3

30.6

Down
1.3%

0.99
20.0

0.81

0.79

Utility gas 5.1％

0.6

Electricity 93.4％

0.0

0FY2015FY2016FY2017FY2018

Waste

t-CO2
600,000
2,673

In fiscal 2018 Torishima achieved a 4.1% year-on-year

44,207 m3(up 13.2%)
Tap water: 23,069 m3(down 17.6%)
Industrial-use
water:

reduction in the amount of discharged and transferred

3,917

2,742

3 Reducing Discharge of PRTR Class

1-Designated Chemicals

CO2 reductions from wind power systems (t-CO2)chemical substances covered by the PRTR (pollutant
release and transfer register) system in Japan. We

400,000
401,418

420,750

449,142keep striving to estimate the required paint volumes

467,195

300,000

more accurately, while reducing the amount of cleaning

200,000

agents we use.
PRTR Class 1-designated chemicals released andtransferred (tonnes)

100,000
86,22285,89985,83576,973

FY2015FY2016FY2017FY2018Tonnes20.0

Initiatives for Reducing Environmental
Burden in Production Activities
1 Saving Resources and Energy

1.3
1.1

10.0
8.1

9.4

5.0

In fiscal 2018, total CO2 emissions from the head office
factory decreased by 7.8% year-on-year, and CO2
emissions per production unit went down by 12.5%.

5.1
0FY2015

TolueneOutputTorishima head office factory

CO2 emissions (year-on-year)

3,937 t-CO2 (down 7.8%)
Waste (year-on-year)

1.4
15.0

5.7
FY2016

Xylene

Down
4.1%

1.1

5.9

5.6

3.3

3.2

FY2017FY2018Ethylbenzene

CO2 emissions (t-CO2) andCO2 emissions per production unit (kg/1 million yen)

30.6 tonnes (up 4.0%)
Recycled resources (year-on-year)

1,280 tonnes (up 17.7%)
Environmental Friendliness throughout
the Value Chain

CO2 emissions per production unit (kg/1 million yen)

Torishima’s freight volume is below that of a specified
consigner, as designated under the Japanese Act on
the Rational Use of Energy. Nevertheless, we implement
various measures to further reduce freight volume. We
have set a target in our environmental management
program of reducing freight volume tonne-km* between
shippers and suppliers in an effort to lessen ourenvironmental impact.
Specifically, we are raising the load efficiencies offreight trucks and pursuing well-planned freighting toprevent sporadic shipments. These and other steady
day-to-day efforts enable us to achieve company-wide
improvements in transport efficiency.

CO2 emissions from head office factory (t-CO2)*Tonne-km = Freight weight (tonne) × transport distance (kilometer)t-CO2

Per production unit: (kg/1 million yen)

5,000

3,000

Gas oil 0.2％

Water consumption (year-on-year)

CO2 reductions from high-efficiency pumps (t-CO2)

4,000

Kerosene 1.3％

0.3

Waste per production unit

CO2 reductions from mini/micro hydropower systems (t-CO2)

500,000(year-on-year)

1.2

CO2 reductions (t-CO2)

2,429

Energy consumption,
converted into crude oil

0.9

0.80

10.0

in the graph below.

4,123

131.6

4,233

117.2

Down
4,270 12.5%

115.4

2,000

250
3,937

Down
7.8% 101.0

1,000
0

April 2, 2019
Kotaro Harada, President and CEO,Torishima Pump Mfg. Co., Ltd.

31.1

efficiency boiler feed pumps, Eco-Pumps, and large

01) We develop and supply highly efficient, environmentallyfriendly pumps that contribute to energy savings;
2) We develop and supply wind power and hydropower
generation systems that use natural energy sources.
This contributes to a reduction of CO2 emissions;3) We provide technologies targeting the reuse of wastematerials, as a way of enhancing the recycling of
natural resources;
4) We actively promote reductions in environmental loads
and prevention of environmental contamination, basedon environmental assessment results;5) We continually strengthen our environmental
management systems in order to raise environmental
performance;6) We comply with environmental laws, regulations, andother applicable obligations. We also formulate andcomply with our own in-house rules;
7) Throughout our production activities, we seek topreserve energy and natural resources and promote
recycling, waste reduction, and proper management ofchemical substances. These actions serve to reduce
environmental burdens.

Per production unit: (kg/1 million yen)
1.5

Tonnes40.0

Torishima head office factory

2,742 kL (down 7.6%)

Waste per production unit (kg/1 million yen) andtotal waste (tonnes)

Pump Business, Renewable Energy andthe Environment Business

Input

200
150
100
50

FY2015FY2016FY2017FY20180Energy Consumption and Input
Torishima fully understands the impact its businessactivities place on the environment. Ever aware of this
impact, we do all we can to reduce the environmental
burden at every stage of our activities, from productdevelopment to disposal. In fiscal 2018 at the head
office, electricity usage decreased by 7.7% year-onyear, while waste increased by 4.0%.

Torishima Pump Mfg. Co., Ltd.

14

ESG

Torishima strives to be a trusted company in its relationshipwith society by fulfilling its social responsibilities. To this end,
we communicate in every way possible with our stakeholders.

SocialRelationship with Business Partners
酉島製作所本社（前年度比）
Employees

Customers

Long-term trust

Suppliers,
Business
Partners

Employment,
human resource
development

Stakeholder
Engagement

To maintain a good relationship with our subcontractor
partners, Torishima selects such partners on the basisof transparent and impartial transactions. We alsoseek to establish equal partnerships with them while
complying with all related laws and regulations.

Pump Classes at Elementary Schools
Children represent the future, and we want to contributeto building that future by nurturing the dreams andambitions of children. Towards that end, Torishima has
been visiting elementary schools near the company’shead office and factory in Takatsuki, Osaka Prefecturesince fiscal 2008 to teach students about the excitement
and challenges of manufacturing. The instructors areyoung members from different departments who spend
six months developing and running a program that sees
both the students and the instructors learn and grow.

Torishima’s efforts

Local
Communities
Contribution tosociety

Fair dealings

Shareholders,
Investors
Appropriate disclosure

In order to improve the level of occupational safety andhealth at both Torishima and our subcontractor
partners, we hold a variety of events tailored to different
workplaces and aimed at eliminating workplace
hazards and accidents. These include joint Torishimasubcontractor occupational safety and health meetings
held at manufacturing sites, safety conferences atsales offices, and hazard prevention workshops atconstruction sites.

Letter of appreciation presented by the Minister of Manpower
and Transmigration of Indonesia

Local Activities

Relationship with Shareholders and Investors
Relationship with Customers

We do everything possible to release company
information in a timely, fair manner so that shareholders
and investors can get a deeper understanding of oursustainable growth.

We strive to respond to customer needs by providingthem with high-value-added products and services
that increase their satisfaction.

General shareholders’ meetings, financial results
briefings for institutional investors, etc.

Torishima’s efforts
Sales activities, “Go Green with Pumps” seminars,
product exhibitions, etc.

Communication tools

Torishima’s efforts
Communication tools

Website, financial results summaries, financial resultspresentation materials, financial statements, shareholder
newsletters, Torishima Report, fact sheets, etc.

Website, brochures, etc.

Relationship with Communities
We contribute to society, communities, and education,and strive for safe and stable operation of our factories
so that everyone living near Torishima bases can livein safety and peace of mind.

Torishima’s efforts
Harada Memorial Foundation

Torishima took part in Thermal Power Expo 2019 held in Tokyo.
We showed customers in the domestic and overseas power
generation industry the advantages of Torishima products.

The Harada Memorial Foundation is a public interest
incorporated foundation. In 1981, then-president
Ryuhei Harada launched the foundation with apersonal contribution. The foundation provides grants
to individuals and organizations engaged in researchin natural science domains connected to the pumpindustry, such as hydraulics and fluid mechanics. It
also offers scholarships to young people.

Technical Intern Training for Foreign Trainees
The technical intern training program for foreign trainees
was established in Japan in 1993 for the purpose of
instructing foreign trainees in those skills, technologies,
work habits, quality control, and other manufacturing
and operational practices at which Japan excels so thatthey can then apply their knowledge to industrial
development back in their home countries. Since 1999,
Torishima has worked with the internship coordination
organization IM Japan to accept close to 90 trainees
from Indonesia and various other countries. The year2018 marked 20 years of involvement by Torishima inthis training program. The Indonesian Minister of
Manpower and Transmigration and IM Japan presented
Torishima with a letter of appreciation for the significant
contribution Torishima has made to the development of
human resources through its enthusiastic acceptanceand tailored instruction of so many trainees over somany years.

In October 2018, Torishima opened its head office
factory for public tours as part of the hands-on,
interactive Open Takatsuki program sponsored by the
Takatsuki City Tourism Association. Even participants
who live close to the factory do not often have suchopportunities to learn about what exactly Torishima
does, and their response was positive. One participant
said that, “I didn’t realize that there was such a globally
active Japanese company right here in Takatsuki.”

The 27th Takatsuki City Half Marathon was run in
January 2019. As a local company, Torishima has
supported the event since its inception. Participants
include everyone from elementary school children to
the elderly, as well as a number of Torishima
employees. Takatsuki Citizens’ Sports Day is anotherof the local events which Torishima supports.

286 cases
Number of scholarships 1,106 students
Number of research grants(Total from 1981 to fiscal 2018)15

Torishima Report 2019

Torishima Pump Mfg. Co., Ltd.

16

Corporate Governance Structure

Human resources are a vital asset that companies
should nurture. We consistently create workplaceenvironments that enable employees to work safely
and worry-free, and we provide learning opportunities
that promote employees’ growth.

As of June 26, 2015, Torishima shifted its corporate
governance structure to one of a company with an
Audit and Supervisory Committee. Under this structure,
directors who are members of the Audit andSupervisory Committee (including three outside Audit
and Supervisory Committee members) are given
voting rights on the Board of Directors. This strengthens
the supervisory functions of the Board of Directors andenhances Torishima’s corporate governance structure.

Torishima actively offers educational opportunities andsupport, such as providing technical training on pumps
and on-the-job training for new employees. We alsooffer grants to help employees obtain a Ph.D. inengineering or a national technical qualification. In
addition, we provide distance learning, in-house
English conversation lessons, and seminars by outsideorganizations to boost employees’ skills. “Seeing isbelieving” is the motto for Torishima’s overseas on-sitetraining for young employees. The goal of this intensive
training program is to enable employees to identify
customer needs and the seeds of new businessbeyond national boundaries.

Diversity
For Torishima to grow sustainably
in a global market, we need touse personnel diversity to ouradvantage. Torishima actively
hires non-Japanese staff andworks to foster employees with a
global perspective so that we canstrengthen our competitive edgein the global market.
We also provide employees
support for raising children. In
addition to an in-house daycare
center, we strive to create anenvironment
conducivetoemployees taking maternity
leave and parental leave. As aresult of such measures, ourpercentage of women returning
to work after childbirth is 100%.
The percentage of disabled
employees at Torishima in fiscal
2018 was 2.85%. This figure far
exceeds the legally mandated
rate of 2.2%. Torishima provides
guidance and support so thatthese employees can feel they
are part of the Torishima teamand nurture their own hopes
and dreams for the future.

Torishima Report 2019

The accounting auditor cooperates with the Audit andSupervisory Committee and the Internal Audit
Department to efficiently conduct effective audits while
exchanging information and views.
The Internal Audit Department, which is independent
from business operations, conducts internal audits
from an unbiased perspective and with a focus on theefficiency, effectiveness, and legality of business
operations. It also audits overseas Torishima Group
companies in light of the globalization of Torishima’s
business activities.
For the future, Torishima will aim to raise corporate
value by increasing the effectiveness of the Board of
Directors. We will also enhance management ofdomestic and overseas subsidiaries in an effort tostrengthen governance. Furthermore, we will introduce
a performance-based compensation system that will
enable the sharing of value between directors andshareholders.

On July 19, 2017,
Torishima received the“Kurumin” mark ofcertification from the
Osaka Labor Bureau of
the Ministry of Health,
Labor, and Welfare inrecognition of thevarious ways in which
Torishima supports
employees in balancing
work and child-raising
responsibilities.

General Shareholders’ Meeting
Appointment/
Dismissal

Supervision/
Auditing

Board of Directors(all directors)
Selection/
Supervision

Organization
 irectors (excludingD
directors on the Audit
and Supervisory
Committee)
Directors on the Audit
and Supervisory
Committee
Executive officer
systemCompany with an Audit andSupervisory Committee
Five: One-year term

Four (of whom three areoutside directors):
Two-year term
Yes

June 2015: Transition to company with an Audit
and Supervisory Committee
November 2015: Report disclosure in line with adoptionof the Corporate Governance Code(establishment of corporate
governance-related basic policies)
May 2017: Start of Board of Director
effectiveness evaluations
June 2018: Introduction of a restricted stockcompensation system

Opinion Statements(on nomination andcompensation of directors)

Appointment/
Dismissal

Suggestions/
Reporting

Audit and Supervisory Committee(directors who are members of the Audit
and Supervisory Committee)

Appointment/
Dismissal

Reporting
Collaborating

Accounting
Auditor
Auditing

Deliberation/
Reporting

Collaborating

President
Prior Discussions

Collaborating

Instruction

Executive Officers
Committee

Instruction

Compliance Committee
Risk Management Committee

ReportingInternal Audit Department

Instruction
Reporting

Guidance/
AdviceSafety and Health Committee

Auditing/Instruction

Executive Officers
Business Divisions

Auditing/
Instruction

Administrative Divisions

Quality Committee
Environment Committee

Auditing/Instruction

Reporting/Consultation

Group Companies

Overview of the Corporate Governance
Structure (As of June 27, 2019)

Initiatives for Strengthening Corporate
GovernanceIn 2016, Torishima
was registered as,
and received a markof certification from
Osaka Prefecture as
a company actively
engaged in theemployment of
disabled persons.

Torishima’s Governance Structure

Company Units

Relationship with Employees

Employee Education

17

Governance

Organizations in Charge of Conducting Business

ESG

To grow sustainably and raise corporate value in the medium to long term,
Torishima is strengthening its corporate governance and its framework forrisk management, internal control, J-SOX compliance, and other items.

Compliance Structure“The Torishima Group has consistently accorded
highest priority to winning and maintaining thecustomer’s solid trust.” In line with this corporate motto,
Torishima has formulated a basic policy to ensurecompliance in business management. The policy
covers the observance of laws and regulations, while
also stipulating fair and impartial behavior andprohibiting discrimination and acts that violate social
ethics. There are further stipulations on maintaining
discipline and order, and on remedial action to takewhen violations of the policy occur.

Duties of the Compliance Committee
1. Develop legal and ethical compliance systems for
Torishima and its subsidiaries, which together makeup the Torishima Group
2. Provide guidance and advice to business execution
divisions regarding the results of internal audits ofcorporate ethics
3. Provide guidance and advice regarding educational
planning and activities related to corporate ethics
4. Provide guidance and advice to the internal
consultation service regarding whistle-blowing

Torishima works to thoroughly communicate thecontent of the policy to all directors and employees, sothat they understand and follow it properly.
Torishima also has a Compliance Committee and a
consultation service for discussing matters such as
workplace ethics and related laws and regulations.

Torishima Pump Mfg. Co., Ltd.

18

Directors and Executive Officers
Directors (As of June 27, 2019)
Maximizing our experience and knowledge to raise the medium- and long-term corporate value of the Torishima GroupISO Certification
Safety and Health Policy, ISO 45001
To ensure a safe work environment with the cooperationof employees and other relevant personnel, Torishima
has been certified for the ISO 45001 occupational
health and safety management standard and iscarrying out health and safety activities.
Certified site: Torishima Pump Mfg. Co., Ltd. head office factory
DateStandard/Certification body

April 2010–
March 2019

JISHA OSHMS standards
JISHA (Japan Industrial Safety and Health
Association)
ISO 45001:2018
Safety and Health Management System Audit
and Certification Center, JISHA

April 2019

Safety and Health Policy
Basic Philosophy

Torishima contributes to society through business activities that
include the development and manufacture of pumps and related
products. At the same time, we regard creating a safe, healthy
environment—one where employees can work free of worries
and where their health is maintained or even enhanced—as thebasis of our QCD (quality, cost, and delivery) actions. We havethus formulated a basic policy on safety and health and arebuilding a culture of safety and health that aims for a virtuous
cycle. And we seek to be a vibrant company that continues togrow forever.

Basic Policy

1. We are building an occupational safety and health management
system based on ISO 45001 and aim to raise the level of safety
and health through ongoing improvement activities.
2. We identify hazardous factors in the workplace through risk
assessments and take countermeasures on an ongoing basis
so that we can reduce risks to an absolute minimum.
3. We comply with all safety and health-related laws andregulations and company standards in an effort to further oursafety and health management.
4. We seek to create a comfortable workplace for everyone
concerned by ensuring effective communication among
Torishima employees and among other people working at
Torishima sites.
5. We strive to prevent incidents and aim for zero accidents anddisasters by raising employees’ awareness of safety andhealth through education and training.
6. In executing safety and health activities, we invest theappropriate management resources and implement effective
improvements on an ongoing basis.

Basic Quality Philosophy
Earning customer trust, providing satisfaction

Quality Policy
1. We place top priority on abiding by laws, regulations, andrules, and on giving customers safety and reliability.
2. In order to provide customers with products and services ofvalue, we make proposals and respond with a clear
understanding of customers’ needs and expectations.
3. We clarify and execute all items stipulated in contracts withcustomers.
4. We constantly create and improve on quality in all processes.
5. We set quality targets, and plan and implement the concretemeasures to realize these targets.
6. To ensure that non-conforming products and customer
complaints never happen, we conduct thorough design
review and initial-product quality control.
7. In the case of non-conforming products, we respond
appropriately and thoroughly.
8. In the case of non-conforming products or customer
complaints, we analyze them from a range of viewpoints toensure they never happen again.
9. We systematically develop employees’ capabilities as partof fostering them into self-directed individuals.
10. We constantly improve our quality management system toensure its maximum effectiveness.

President andRepresentative Director

Kotaro Harada
Since being appointed
president and representative
director in June 2006, Mr.
Harada has demonstrated
strong leadership at the coreof Torishima’s management.
He plays an indispensablerole in raising corporate
value over the medium andlong term.

Representative Director

Representative Director

Director

Director

Tetsuya Kujima

Koichiro Hamu

Nobuyuki Yoshikawa

Hiroto Takahashi

After being engaged
in areas such as sales
planning and wind power,
Mr. Kujima was appointed
representative director in
June 2018. He is now incharge of manufacturing
and procurement, and healso takes part in corporate
planning.

Mr. Hamu has always been
involved in engineering. As
well as being in charge oftechnology, he takes part incorporate planning. There,
his job is to promote theplanning and developmentof new products and boost
Torishima’s overseas
marketing capabilities. He
has been newly appointed
as representative director.

Mr. Yoshikawa has a wealthof experience in areas suchas quality assurance, CSR
promotion, manufacturing,and procurement. Since
April 2019, he has been
supporting Torishima’sback office operations as
general manager of the
Administration Division.

After joining Torishima
in 2003 and working inwind power development,
Mr. Takahashi has been
engaged in personnel andgeneral affairs. He wasappointed director based on
his contribution to runninggeneral shareholders’meetings and heading
investor relations activities.
His work in these areas hashelped to raise Torishima’s
corporate value over the
medium to long term.

Newly appointed

April 3, 2019
Kotaro Harada,
President and CEO

ISO 14001 Certification
Torishima actively pursues ISO 14001 certification,
an international standard on environmental
management systems, and strives to protect theenvironment. All of our bases in Japan operateenvironmental management systems that comply
with ISO 14001:2015.

Director (Member of Audit
and Supervisory Committee),
Chair of Audit andSupervisory Committee

Yutaka Fukuda
Mr. Fukuda draws on his
experience and knowledgein accounting, generalaffairs, and internal auditing
to strengthen Torishima’s
governance and compliancesystems.

Director (Member of Audit
and Supervisory Committee)

Director (Member of Audit
and Supervisory Committee)

Director (Member of Audit
and Supervisory Committee)

Akira Tsuda

Shiro Hakukawa

Hiroshi Akiyama

Mr. Tsuda has ample
experience, knowledge, andsuccess working at othercompanies as a director
and in other management
positions. From an objective
perspective, independentof Torishima’s management
members, he provides
sound proposals and advice
to the company’s Board of
Directors.

Mr. Hakukawa has
specialized knowledge
in taxes, finance, andaccounting gained throughyears of experience as acertified public accountant.
He brings strengthened
oversight and transparency
to Torishima’s management.

Mr. Akiyama has gained
extensive experience frombeing a lawyer and working
as an outside auditor atother companies. He offersa legal perspective while
overseeing the strengtheningof Torishima’s governanceand compliance systems.

Date

Name

April 1, 2019

July
1999

Torishima Pump Mfg. Co., Ltd.
head office and factories (Japan)

Kotaro Harada,
President and CEO

March
2004

P.T. Torishima Guna Indonesia
P.T. Torishima Guna Engineering (Indonesia)

May
2005

Kyushu Torishima Co., Ltd. (Japan)

Chief Executive Officer

Kotaro Harada

President

September
2010

Torishima Service Solutions Europe Ltd. (U.K.)

Deputy Chief
Executive Officer

Gerald Ashe

Overseas Business

Senior Managing
Executive Officers

Tetsuya Kujima
Koichiro Hamu

General Manager of Manufacturing Division, General Manager of Procurement Division
General Manager of Corporate Planning Office*, General Manager of Engineering Division,
General Manager of Research & Development Department
General Manager of Corporate Planning Office*, General Manager of Global Sector Division,
General Manager of TGT Sales Department
*The Corporate Planning Office is under joint management.

Nobuyuki Yoshikawa,
Safety and HealthGeneral Manager

ISO 9001 Certification
Torishima has been certified for ISO 9001, aninternational standard on quality management
systems. This assures we deliver products,
engineering, and maintenance services of a qualitythat satisfies customers and earns their trust.
Date

Name

February
1997

Torishima Pump Mfg. Co., Ltd. head office factory;
Torishima Tokyo branch; Sapporo, Sendai, Nagoya,
Osaka, Takamatsu, Hiroshima, Kyushu, and Saga
offices; Yokohama and Okinawa sales offices (Japan)

More and more of Torishima’s overseas subsidiaries and branches havebeen achieving ISO 9001 certification.

19

We make group-wide efforts to raise quality.

Torishima Report 2019

May
2012

Torishima Tokyo branch; Sapporo, Sendai,
Nagoya, Osaka, Takamatsu, Hiroshima,
Kyushu, and Saga offices; Yokohama andOkinawa sales offices (Japan)

August2012

Torishima Pump Mfg. Co., Ltd.
Qatar Project Office (Qatar)

January
2013

Torishima Pump Mfg. Co., Ltd.
Middle East Project Office (U.A.E.)

July
2013

Torishima Pump (Tianjin) Co., Ltd. (China)

For further information on Torishima’s ESG initiatives,
please visit our corporate website.

www.torishima.co.jp/en/outline/csr/

Executive Officers (As of June 27, 2019)

Alister Flett

Managing Executive Officers Nobuyuki Yoshikawa General Manager of Administration Division
Yoshiaki Inuyama
General Manager of Public Sector Division
Yoshinori Hirusawa General Manager of Private Sector Division
Executive Officers

Hiroto Takahashi
Masahiro Yamazaki
Mike Choi
Takuya Ono
Satoshi Tomizawa
Akihiro Suezawa
Yasuo Yanagawase
Hideki Tsukahara
Akihiro Wada

General Manager of Personnel Department, General Manager of General Affairs Department
Chairman of Torishima Pumps (India) Private Ltd.
Regional Director of TGT Hong Kong & Vietnam, Managing Director of Torishima (Hong Kong) Ltd.
General Manager of Singapore Office
General Manager of Middle East Office, General Manager of Pump Sales Department,
General Manager of Saudi Arabia Representative Office
General Manager of Tokyo Branch, General Manager of Tokyo Branch Plant Sales Department
General Manager of Osaka Branch, General Manager of Osaka Branch Public-Sector Sales Department
General Manager of Tokyo Branch Private Sector Sales Department
Deputy General Manager of Procurement Division, General Manager of Procurement Department
Torishima Pump Mfg. Co., Ltd.

20

Financial Data from the Past 11 Years
Millions of yen

Thousands of
U.S. dollars*1

FY2008FY2009FY2010FY2011FY2012FY2013

FY2014FY2015FY2016FY2017FY2018FY2018Orders received

46,98858,62432,97439,57940,97552,84742,87851,304

43,48342,23351,768466,378

Net sales

45,69245,00849,88046,45345,97445,98546,50140,47944,41445,381

48,154433,820Gross operating income

8,596

9,548

9,257

8,959

8,015

8,320

9,162

9,191

10,538

10,954

11,763105,973

Operating income or loss

2,761

3,258

3,127

2,286

517

(945)

400

373

1,462

1,257

1,731

15,595

Ordinary income or loss

3,410

3,833

3,673

2,929

1,389

(632)

793

(1,663)

1,871

1,549

2,275

20,495

Net income or loss attributable to owners of the parent

1,990

2,609

1,892

1,497

943

442

405

(2,422)

1,532

854

2,183

19,667Gross profit margin (%)

18.8%

21.2%

18.6%

19.3%

17.4%

18.1%

19.7%

22.7%

23.7%

24.1%

24.4%

24.4%

Operating profit margin (%)

6.0%

7.2%

6.3%

4.9%

1.1%

(2.1)%

0.9%

0.9%

3.3%

2.8%

3.6%

3.6%

ROE (return on equity) (%)

8.0%

9.5%

6.1%

4.8%

2.9%

1.3%

1.1%

(7.5)%

4.7%

2.6%

6.4%

6.4%

ROA (return on assets) (%)

3.2%

4.0%

3.1%

2.5%

1.4%

0.6%

0.6%

(3.7)%

2.3%

1.2%

3.0%

3.0%

Total assets

62,13265,641

61,17860,812

68,232

68,062

71,987

66,19867,71971,171

72,674

654,721

Net assets

24,00631,08330,96831,77533,602

34,52436,532

32,79433,71334,01734,947

314,838

Equity ratio (%)

38.6%

47.2%

50.3%

51.3%

48.2%

49.9%

50.0%

48.7%

48.9%

47.3%

47.7%

47.7%

Japan

19,126

20,93918,703

17,281

18,07020,096

19,104

17,05922,15325,05824,471

220,459

Asia

8,449

5,408

11,196

13,125

10,259

9,042

11,124

11,307

8,612

8,391

8,168

73,586

Middle East

13,347

16,24814,36911,43011,887

9,753

11,1158,225

10,94010,064

11,196

100,865

Others

4,770

2,412

5,609

4,615

5,758

7,092

5,156

3,887

2,708

1,866

4,318

38,901

Overseas ratio (%)

58.1%

53.5%

62.5%

62.8%

60.7%

56.3%

58.9%

57.9%

50.1%

44.8%

49.2%

49.2%

Public sector

14,835

14,575

9,973

11,60010,971

15,923

12,001

16,013

15,913

13,914

16,434148,054

Private sector

5,245

4,517

4,921

6,205

5,733

7,144

6,943

8,396

7,973

8,914

9,258

83,405

Overseas

26,90739,532

18,07921,772

24,27029,77923,93326,895

19,595

19,40326,075234,910

Public sector

14,09915,46913,76011,317

12,277

13,797

12,957

9,980

13,832

16,621

15,931

143,523

Private sector

5,025

5,468

4,942

5,963

5,792

6,299

6,146

7,078

8,320

8,436

8,540

76,937

Overseas

26,56624,06931,17629,172

27,90425,88827,397

23,41922,261

20,322

23,683

213,360

Public sector

11,20910,316

6,528

6,811

5,505

7,631

6,675

12,707

14,78812,082

12,585

113,378

Private sector

3,428

2,477

2,455

2,698

2,639

3,484

4,281

5,598

5,251

5,729

6,447

58,081

Overseas

35,86751,32938,23130,832

27,19831,08927,625

31,101

28,436

27,51629,908269,441

SG&A (selling, general, and administrative expenses)

5,834

6,290

6,130

6,673

7,497

9,265

8,761

8,818

9,075

9,697

10,03290,378

SG&A-to-sales ratio (%)

12.8%

14.0%

12.3%

14.4%

16.3%

20.1%

18.8%

21.8%

20.4%

21.4%

20.8%

20.8%

Depreciation

873

851

961

1,096

1,231

1,646

1,636

1,561

1,599

1,636

1,825

16,441

Capital investment

739

1,311

2,297

2,224

3,083

2,139

1,221

1,391

1,084

883

1,627

14,658R&D expense

603

730

567

606

691

678

658

484

453

430

482

4,342

Cash flow from operations

922

4,439

735

2,661

3,513

(4,086)(1,194)

5,000

6,496

587

3,769

33,955

Cash flow from investments(1,259)(3,084)(75)(1,269)(3,966)(4,498)

(345)

(415)

1,376

(1,105)(1,438)(12,955)

Cash flow from financial activities

(669)

1,678

590

(2,371)

4,356

(112)

2,120

(1,624)(4,140)

1,153

2,150

19,3696
Per share information

Net income per share (yen)77.32

100.07

67.45

53.38

33.64

15.74

14.61

(88.13)

56.15

31.50

80.18

0.72 dollars

Net assets per share (yen)931.13

1,105.50

1,097.71

1,112.29

1,172.56

1,209.10

1,308.22

1,179.57

1,221.94

1,240.33

1,270.43

11.45 dollars

7
Stock information

Dividends (yen)

17

18

18

18

18

18

18

18

18

Payout ratio (%)

22.0%

26.7%

33.7%

53.5%

114.4%

123.2%

–

32.1%

57.5%

(Fiscal years ended March 31)

1
Business
performance2
Financial status

Net salesby region

3
Breakdown oforders received,
net sales, andorder backlog

Orders received
by segment

Net salesby segment

Order backlog
by segment

4
Major expenditures

5
Cash flow

20 *2
20.0%

25 *3
31.3%

0.23 dollars
31.3%*1: ‌U.S. dollar amounts have been translated from yen—solely for the convenience of the reader—at the rate of ¥111 to U.S.$1.00,
the exchange rate prevailing on March 31, 2019.
*2: Includes an additional 2-yen dividend commemorating Torishima’s 90th year of business.
*3: Includes an additional 7-yen dividend commemorating Torishima’s 100th year of business.
Note: Figures on pages 21 to 27 have been calculated based on Japanese disclosure rules.
21

Torishima Report 2019

Torishima Pump Mfg. Co., Ltd.

22

Consolidated financial statements
Consolidated balance sheet

Thousands of
U.S. Dollars*1

Millions of Yen

Thousands of
U.S. Dollars*1

Millions of Yen

FY2017FY2018FY2018FY2017FY2018FY2018(March 31, 2018)(March 31, 2019)(March 31, 2019)(March 31, 2018)(March 31, 2019)(March 31, 2019)

AssetsLiabilities

Current assets

Current liabilities

Cash and deposits

11,474

15,931

143,526

Notes and accounts payable - trade

10,998

11,145

100,411

Notes and accounts receivable - trade26,78425,778232,242

Short-term loans payable

4,196

2,443

22,016Merchandise and finished goods

228

217

1,963

Income taxes payable

379

140

1,262

Work in process

7,639

6,462

58,223

Advances received

3,091

2,292

20,656

Raw materials and supplies

1,663

1,647

14,844

Provision for bonuses

856

872

7,857

Advance payments - trade

661

624

5,630

Provision for product warranties

722

797

7,182

Other

946

1,301

11,721

Provision for loss on construction contracts

1,635

584

5,270

Allowance for doubtful accounts

-841

-966

-8,705

Other

2,250

2,237

20,15648,55650,998459,445

Total current liabilities

24,13020,513

184,810

11,095

15,470139,371

Total current assets
Non-current assets

Non-current liabilities

Property, plant and equipment

Long-term loans payable
10,084

10,65896,025

Deferred tax liabilities

928

659

5,940

Accumulated depreciation-6,215-6,541-58,933

Provision for retirement benefits for directors (and other officers)

19

1

16

Buildings and structures, net

3,869

4,117

37,092Retirement benefit liability

300

301

2,717

Machinery, equipment and vehicles

10,772

11,186

100,781

Other

679

779

7,024

Accumulated depreciation-8,387-8,807-79,351

Total non-current liabilities

13,023

17,212

155,069

Machinery, equipment and vehicles, net

2,384

2,378

21,43037,15437,726

339,879

Tools, furniture and fixtures

2,718

3,082

27,772

Accumulated depreciation-2,371-2,609-23,507

346

473

4,264

Capital stock

1,592

1,592

14,349

2,490

2,484

22,386

Capital surplus

7,604

7,621

68,666

715

815

7,348

Retained earnings

23,13824,793

223,363

Accumulated depreciation

-277

-338

-3,049Treasury shares-1,841-1,736-15,643

Leased assets, net

437

477

4,298

Total shareholders' equity

30,49432,271

290,735

Construction in progress

102

225

2,032

9,631

10,156

91,501

Valuation difference on available-for-sale securities

2,039

1,638

14,762

1,416

909

8,196

Deferred gains or losses on hedges

72

-59

-535

Foreign currency translation adjustment

621

420

3,784

461

381

3,434

3,196

2,380

21,445

Buildings and structures

Tools, furniture and fixtures, net
Land
Leased assets

Total property, plant and equipment
Intangible assets
Investments and other assets

Total liabilities
Net assets
Shareholders' equity

Accumulated other comprehensive income

10,497

9,542

85,959Remeasurements of defined benefit plans

Long-term loans receivable

349

333

3,005

Total accumulated other comprehensive income

Retirement benefit asset

597

455

4,101

Share acquisition rights

142

121

1,092

Deferred tax assets

86

105

950

Non-controlling interests

184

174

1,573

Other

561

664

5,992

34,01734,947

314,845

Allowance for doubtful accounts

-523

-491

-4,425

71,171

72,674

654,724

11,567

10,60995,581

22,615

21,675

195,279

71,171

72,674

654,724

Investment securities

Total investments and other assets
Total non-current assets
Total assets

Total net assets
Total liabilities and net assets*1: ‌U.S. dollar amounts have been translated from yen—solely for the convenience of the reader—at the rate of ¥111 to U.S.$1.00,
the exchange rate prevailing on March 31, 2019.

23

Torishima Report 2019

Torishima Pump Mfg. Co., Ltd.

24

Consolidated financial statements
Consolidated statements of (comprehensive) income(Consolidated statements of income)Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using equity method
Rent income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Commission for syndicate loan
Foreign exchange losses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of investment securities
Gain on sales of shares of subsidiaries and associates
Total extraordinary income
Extraordinary losses
Loss on sales of investment securities
Loss on valuation of investment securities
Loss on valuation of shares of subsidiaries and associates
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit (loss) attributable to non-controlling interests
Profit attributable to owners of parent(Consolidated statements of comprehensive income)

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests

Thousands of
U.S. Dollars*1

Millions of Yen

FY2017FY2018FY2018(April 1, 2017 to March 31, 2018)(April 1, 2018 to March 31, 2019)(April 1, 2018 to March 31, 2019)45,381
34,426
10,954
9,697
1,257

48,15436,391
11,763
10,032
1,731

433,828
327,847
105,981
90,385
15,595

25
242
96
143
169
676

71
220
99
131
290
811

640
1,983
896
1,182
2,614
7,315

128
32
75
29
267
2,275

120
67
94
103
384
1,549

97
9
106

—
—
—

83
14
28
127
2,254
107
-7
100
2,154
-28
2,183

—
—
104
104
1,444
385
183
569
875
20
854

Torishima Report 2019

874
88
963
756
134
259
1,149
20,315971-68904
19,411-260
19,671Thousands of
U.S. Dollars*1

Millions of Yen

FY2017FY2018FY2018(April 1, 2017 to March 31, 2018)(April 1, 2018 to March 31, 2019)(April 1, 2018 to March 31, 2019)

875

2,154

19,411

206
65
-140
153
3
290
1,165

-401
-132
-212
-80
-1
-828
1,326

-3,616-1,190-1,917-726-14-7,463
11,948

1,160
5

1,367
-41

*1: ‌U.S. dollar amounts have been translated from yen—solely for the convenience of the reader—at the rate of ¥111 to U.S.$1.00,
the exchange rate prevailing on March 31, 2019.

25

1,160
296
685
268
2,409
20,501

12,322-374

Consolidated statements of changes in net assets
FY2018 (April 1, 2018 to March 31, 2019)

Millions of yen
Shareholders' equity

Capital stock

Capital surplus

Retained earnings

1,592

7,604

23,138

Balance at beginning of current period
Changes of items during period
Dividends of surplus
Profit attributable to owners of parent
Purchase of treasury shares
Disposal of treasury shares
Sales of shares of consolidated subsidiaries
Change of scope of consolidation
Net changes of items other than shareholders' equity
Total changes of items during period
Balance at end of current period

17

Treasury shares Total shareholders' equity

30,494-1,841

-492

-492

2,183

2,183
-0

-0

105

105

-4

12

-31

-31

—

17

1,654

104

1,777

1,592

7,621

24,793-1,73632,271

Accumulated other comprehensive income

Balance at beginning of current period
Changes of items during period
Dividends of surplus
Profit attributable to owners of parent
Purchase of treasury shares
Disposal of treasury shares
Sales of shares of consolidated subsidiaries
Change of scope of consolidation
Net changes of items other than shareholders' equity
Total changes of items during period
Balance at end of current period

Valuationdifferenceonavailablefor-salesecurities

Deferred
gains orlosses onhedgesForeigncurrencytranslation
adjustment

2,039

72

621

Total
Remeasure- accumulated
ments ofother
definedcomprebenefit
hensiveplans
incomeShare
acquisitionrights

Noncontrollinginterests

Total net
assets

3,196

142

184

34,017

461

-492
2,183
-0
105
12
-31
-401

-132

-201

-80

-815

-21

-9

-401

-132

-201

-80

-815

-21

-9

930

1,638

-59

420

381

2,380

121

174

34,947FY2018 (April 1, 2018 to March 31, 2019)

-846

Thousands of US dollars*1
Shareholders' equity
Capital stock

Capital surplus

Retained earnings

14,34968,507

208,454

Balance at beginning of current period
Changes of items during period
Dividends of surplus
Profit attributable to owners of parent
Purchase of treasury shares
Disposal of treasury shares
Sales of shares of consolidated subsidiaries
Change of scope of consolidation
Net changes of items other than shareholders' equity
Total changes of items during period
Balance at end of current period

159

Treasury shares Total shareholders' equity

274,721-16,589-4,432-4,432

19,671

19,671
-1

-1

947

947

-43

116

-287

-287

—

159

14,909946

16,014

14,34968,666

223,363-15,643

290,735

Accumulated other comprehensive income

Balance at beginning of current period
Changes of items during period
Dividends of surplus
Profit attributable to owners of parent
Purchase of treasury shares
Disposal of treasury shares
Sales of shares of consolidated subsidiaries
Change of scope of consolidation
Net changes of items other than shareholders' equity
Total changes of items during period
Balance at end of current period

Valuationdifferenceonavailablefor-salesecurities

Deferred
gains orlosses onhedgesForeigncurrencytranslation
adjustment

18,376

655

5,603

Total
Remeasurements of accumulated
otherdefinedcomprebenefit
hensiveplans
incomeShare
acquisitionrights

Noncontrollinginterests

Total net
assets

28,794

1,286

1,659

306,460

4,160-4,432
19,671
-1
947
116
-287
-3,614-1,190-1,819-726-7,349-194-86-3,614-1,190-1,819-726-7,349-194-86-7,6298,385

14,762

-535

3,784

3,434

21,445

1,092

1,573

314,845

Torishima Pump Mfg. Co., Ltd.

26

Consolidated financial statements
Consolidated statements of cash flows

Cash flows from operating activities
Profit before income taxes
Depreciation
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for product warranties
Increase (decrease) in provision for loss on construction contracts
Increase (decrease) in retirement benefit liability
Interest and dividend income
Interest expenses
Share of loss (profit) of entities accounted for using equity method
Loss (gain) on valuation of investment securities
Loss (gain) on sales of investment securities
Loss (gain) on valuation of subsidiaries and associates
Loss (gain) on sales of shares of subsidiaries and associates
Loss (gain) on sales and retirement of property, plant and equipment
Decrease (increase) in notes and accounts receivable - trade
Decrease (increase) in inventories
Decrease (increase) in advance payments
Increase (decrease) in notes and accounts payable - trade
Increase (decrease) in advances received
Increase (decrease) in accounts payable - other
Other, net
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes paid
Income taxes refund
Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sales of investment securities
Payments of loans receivableCollection of loans receivable
Proceeds from sales of shares of subsidiaries resulting in change in scope of consolidation
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Proceeds from sales of treasury shares
Purchase of treasury shares
Proceeds from share issuance to non-controlling shareholders
Dividends paid to non-controlling interests
Cash dividends paid
Payments from changes in ownership interests in subsidiaries that do not result in change in scope of consolidation
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Increase in cash and cash equivalents from newly consolidated subsidiary
Cash and cash equivalents at end of period

Global Network

Thousands of
U.S. Dollars*1

Millions of Yen

FY2017FY2018FY2018(April 1, 2017 to March 31, 2018)(April 1, 2018 to March 31, 2019)(April 1, 2018 to March 31, 2019)

1,444

2,254

20,315

1,636

1,825

16,445

430

96

870

-122

74

673

678

-1,047-9,433

-26

42

380

-267

-291

-2,623

120

128

1,160

-96

-99

-896

—

14

134

—

-13

-118

104

28

259

—

-9

-88

7

-1

-13

-3,180

1,065

9,595

-569

1,142

10,289

-252

100

903

1,576

3

29

-1,282-773-6,966294-274-2,472224-262-2,366719

4,004

36,077

268

291

2,629

-119

-122

-1,105-335-404-3,640

53

—

—

587

3,769

33,962

-136

-78

-708

97

108

979

-715

-1,558-14,039

63

11

105

-167

-69

-622

Tianjin, China
Torishima Pump（Tianjin）Co., Ltd.

Glasgow, U.K.
Torishima Europe Ltd. /Torishima Service Solutions Europe Ltd.

Beijing, China
Beijing Representative Office●●

Madrid, Spain
Torishima Europe Ltd.
Madrid Office

Saga, Japan
Kyushu Torishima Co., Ltd.

●

Gurgaon, India
Torishima Pumps（India）Pvt. Ltd.
●

●

●

●

●

●

●
●

●
●

Malaysia
Torishima Service Solutions Malaysia Sdn. Bhd.

●

Dammam, Saudi Arabia
Torishima Service Solutions（Saudi Arabia）Ltd.
Riyadh, Saudi Arabia
Saudi Arabian Representative OfficeHanoi, Vietnam
Torishima Service Solutions Asia Pte. Ltd.
Vietnam Office●

Jakarta, Indonesia
P.T. Geteka Founindo /P.T. Torishima Guna Indonesia /P.T. Torishima Guna Engineering

Abu Dhabi, U.A.E.
Middle East Project Office
Doha, Qatar
Qatar Project Office

Victoria, Australia
Torishima Australia Pty. Ltd.

-0

-7

29

390

3,519

—

-46

-417

Torishima Pump Mfg. Co., Ltd.

Individuals and others
5,548,345 shares 18.56%

Foundation: August 1, 1919

Treasury stock
2,528,069 shares 8.46%

20

180

—

-22

-206

13

-194

-1,749-1,105-1,438-12,964

Corporate Data (As of March 31, 2019)

59

49

442

5,307

47,818-5,873-2,639-23,783

62

60

548

-0

-0

-1

—

38

347

-1

—

—

-491

-490

-4,421

-470

—

—

-131

-174

-1,573

1,153

2,150

19,376

-127

3

31

508

4,485

40,405

10,871

11,379102,522

—

59

535

11,37915,924143,462

Countries where Torishima hasdelivered products (more than 100)

Share Breakdown (As of March 31, 2019)

Paid-in-capital: 1,592,775,030 yen
Outstanding shares: 29,889,079
Shareholders: 5,753

8,000

Mexico City, Mexico
Torishima Europe Ltd.
Mexico Office

Singapore
Singapore Office /Torishima Service Solutions Asia Pte. Ltd.

Bengaluru, India
Torishima Pumps（India）Pvt. Ltd.
Dubai, U.A.E.
Middle East Office /Torishima Service Solutions FZCO●

Hong Kong
Torishima（Hong Kong）Ltd.
Bangkok, Thailand
Torishima Service Solutions（Thailand）Ltd.

●

●

●

Manila, Philippines
Torishima Service Solutions Asia Pte. Ltd. Philippines Office●●●

Massachusetts, U.S.
North America East Office●TaiwanTaiwan Office / Torishima Service Solutions Formosa Co., Ltd.

●●

Michigan, U.S.
Torishima Service Solutions of Michigan LLC

HEAD OFFICE
Osaka, Japan
Torishima Pump Mfg. Co., Ltd.

-305

16

As of June 30, 2019

Torishima has delivered products to more than 100 countries and today
our network of offices, factories, and service centers spans the globe.

Share Breakdown by
Type of Shareholder

Employees: ‌1,588 (Consolidated);
878 (Non-consolidated)

Financial institutions
9,706,348 shares 32.47%
Financial instrument business operators
191,626 shares 0.64%
Other companies
7,112,524 shares 23.80%
Non-Japanese companies, etc.
4,802,167 shares 16.07%

Major Bases (As of June 30, 2019)
Major Japanese Bases

Manufacturing Bases

Overseas Offices

Head office: 1-1-8 Miyata-cho, Takatsuki City,
Osaka 569-8660, Japan

Head office factory (Osaka, Japan)
Kyushu Torishima Co., Ltd. (Saga, Japan)
P.T. Torishima Guna Indonesia, P.T. Geteka Founindo(Jakarta, Indonesia)
Torishima Pump (Tianjin) Co., Ltd. (Tianjin, China)

Singapore Office,Middle East Office (UAE),
North America East Office (US),Taiwan Office,Beijing Representative Office (China),
Saudi Arabian Representative Office,
Qatar Project Office

Branch offices: Tokyo, Osaka, Sapporo,
Sendai, Nagoya, Takamatsu, Hiroshima,
Kyushu, Saga
Sales offices:Yokohama, Wakayama, Okinawa*1: ‌U.S. dollar amounts have been translated from yen—solely for the convenience of the reader—at the rate of ¥111 to U.S.$1.00,
the exchange rate prevailing on March 31, 2019.
27

Torishima Report 2019

Torishima Pump Mfg. Co., Ltd.

28