Hirata Corporation

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CSR 1308-E1806NI01

Corporate Social Responsibility Report

CSR REPORT 2018

Hirata Corporation

T o p Mes s a ge

Introduction
Hirata Corporation, as of June 15, 2017, changed its market listing from the JASDAQ to the First
Section of the Tokyo Stock Exchange.

sincerely thank our stakeholders for their support.
The rapid growth Hirata Corporation achieved during the previous three-year medium-term

We would like to take this opportunity to express our sincere gratitude to all those who havemanagement plan allowed us to identify new issues. In order to address these issues, Hirata

helped us achieve this milestone, including shareholders and business partners, for their support.

Corporation will, in the medium-term management plan starting from FY2018, make efforts

Since the foundation of Hirata Corporation in 1951, we have provided production systems to

to strengthen internal control systems within the entire Hirata Group, working primarily on

the world’s top manufacturers in various field of industry, such as automobiles, semiconductors

enhancement of our mass production businesses, penetration in growth markets, further cultivationand consumer electronics. We believe that“contribution to society through products”is the mostand expansion of existing businesses, and reinforcement of ordering, production and development

important thing we can offer to the world. We will continue to pursue technological innovation sosystems. Under the banner of the Group’s slogan,“Top Integrator of Production Equipmentthat Hirata Corporation's production systems can help solve problems that companies around the

Systems for Global Customers”, we will provide Hirata’s unique value.

globe are facing, such as declining birth rates and aging populations, decreases in the labor force
population, and changes in the global environment.
We also place high priority on the restoration of Kumamoto, our birth place, which was severely
affected by the Kumamoto earthquakes which occurred in April 2016. We will continue tocontribute to local communities through sports promotion as a main sponsor of Roasso Kumamoto,a J2 Football League team, as well as a sponsor for the Kumamoto Castle Marathon.

Conclusion
Hirata Corporation aspires to contribute to society aiming for sustainable development and close
cooperative relationships with more of our stakeholders.
We appreciate your continued support for andcooperation in our endeavors.

We see our listing on the First Section of the Tokyo Stock Exchange as a new start, not an end
goal, and we will continue to fulfill our social responsibility as a company that contributes tosociety.

Aiming to be an integrator of production equipment systems for global
customers

In FY2017, the final fiscal year of the current medium-term management plan (FY2015 – FY2017),
we recorded our highest ever consolidated net sales of 94.1 billion yen, well surpassing the target
of“consolidated net sales of 50 billion yen or more and operating margin of 5% or more”. We

Editorial Policy

In order to inform the businessactivities of Hirata Corporation and therelationships with our stakeholders, we
hereby issue the CSR Report 2018.
By closer communications withstakeholders through the Report, we
will improve our activity level.
We truly appreciate your direct
opinions and comments.

01

The Global Production Engineering Company

Scope of report

Target Period: FY 2017 (April 1, 2017 – March 31, 2018)
Organization:Hirata Corporation, non-consolidated (consolidated results are added tothe changes in business results)
Published:June 2018 (Next scheduled report: June 2019)
Reference Guidelines:GRI“Sustainability Reporting Guidelines 4.”
The Ministry of the Environment,“EnvironmentalReport Guidelines (2012 edition)”Contact details:Quality Control Department
TEL：81-96-272-3277 FAX：81-96-272-3345
Accounting Department IR group
TEL：81-272-5558 FAX：81-96-272-3618
Website/http://www.hirata.co.jp

President

Yuichiro Hirata

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

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

Together with Customers …
Together with Business Partners…
Together with Employees…
Together with Shareholders
and Investors …………………
Together with Local
Communities …………………

12
13
14
17
18

Environmental Report
Environmental
Management ……………… 19
Environmental Conservationin Business Activities……… 21
Environmental Consideration
for Products ………………… 22

02

Corporate Social Responsibility ReportManagement Philosophy
CSR Policy
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.

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

CSR Policy

1

Overview of Company
and BusinessCompany Name Hirata Corporation
H e a d q u a r t e r s 111 Hitotsugi, Ueki, Kita, Kumamoto,861-0198 Japan
TEL：81-96-272-0555
FAX：81-96-272-7901
Representative President and Representative Director
Yuichiro Hirata
Date Established Dec. 29, 1951
Accounts Closed Mar. 31 (annually)
Employee Number Consolidated 2,185 employees(1,773 employees full-time)Non-consolidated 1,360 employees(1,021 employees full-time)
Capital2,633 million yen
Stock Exchange Listings Tokyo Securities Exchange
The First Section of the Tokyo
Stock Exchange(Code: 6258)
Issued Number of Shares 10,756,090 shares
Number of Shareholders 11,351 people
Production base Kumamoto prefecture:
Kumamoto Plant, Kumamoto East Plant,
Kusuno Plant, Shichijo Plant
Tochigi prefecture: Kanto Plant
Shiga prefecture: Kansai Plant

innovations.

3

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

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

4

Consolidated

Unit millions of yen

on-consolidated

Consolidated

Unit millions of yen

03

The Global Production Engineering Company

In the field of the semiconductor related production facility, we manufacture and sell load ports which transfer
silicon wafers into individual processing devices, wafer transfer robots for atmospheric and vacuum environment, as
well as EFEMs (Equipment Front End Modules) that integrates these components.
53,04880,542In the panel device
52,145 manufacturing field, we mainly engage in consignment manufacturing of liquid crystal glass
conveyance
47,129 systems, resist coating systems, and evaporation equipment related to organic electroluminescence
53,04880,542
52,145(organic EL). In addition, we also manufacture and sell cutting apparatus for tempered glass, vacuum platforms for
47,129 38,197
38,14662,784processing,and other37,725
products.

53,04852,14547,12950,00069,74580,54262,78450,00040,00069,74533,71862,78440,00030,00053,04852,145 37,725
38,19733,71847,12930,00020,00038,19733,71838,19733,71837,72562,784

28,16220,00010,000

ar-14
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ar-15

ar-16

ar-17

ar-18

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10,00000ConsolidatedincomeUnit millions of yen
Ordinary
9,247

on-consolidated
on-consolidated

Unit millions of yen

Consolidated

8,039

8,039
6,182
6,182

9,247

1,962

1,658
929
1,658

725 ar-14

ar-14

929

1,962

2,345
2,345

Wafer Transfer Robot

3,500

6,066
6,066

2,500
3,000
2,000
2,500

2,825

1,000
1,500
500
1,000

2,825

0
500

ar-15

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ar-17

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eneral meetin o s are olders
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-500
0
-500

Laser Glass Cutting System

Vacuum Platform

Home Appliances2,825
and Other Production Equipment

3,000
3,500

1,500
2,000

725

38,14628,162

37,725sustainable growth.

By striving to protect the environment, we ensurea safe and healthy life for local residents and will
actively contribute to the society.

94,16380,542

We formulate appropriate relationships based on
mutual trust with all stakeholders, and business
partners and will cooperate with each other for

We make efforts to protect theenvironment and contributeto society through all corporate
ac t i v i t i e s .

Clutch Assembly Line

94,163We build up appropriate
relationships with all stakeholders.

5

We engage in the manufacture and sales of a wide rangeof production equipment, such as power transmission/driving
devices for engines and transmissions, 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, air compressors for air
conditioners, ABS brake modules, motors for hybrid cars, anddriving inverters.

Semiconductor Production Equipment Businesson-consolidated

2

satisfaction in their job.

Automotive Production Equipment BusinessNet sales

We respect human rights of all
persons who are involved with ourcompany.

We respect the individuality and personality of
everyone involved with our company and will build
a workplace, where employees can feel pride andMain Product Line Introduction

Business Results

Through technological innovations,w e m a n u f a c tu r e p r o d u c t s t h a tcontribute to social development.

By realizing the customer’s desire for quality, safety,
and productivity, we will meet these expectationsof society through our ceaseless technological

Products Information

2,345

2,825
1,962
We manufactureand sell
production equipment for manufacturers of
1,658
2,345
electronic and electricmachinery and equipment, including such home
1,962
appliances
as 929flat TVs, refrigerators, and vacuum cleaners.
1,658
Our725products are capable of adapting to automatic assembly systems
929
394
with
various sizes and shapes, including high-speed assembly of small725
condensers,
incorporated into electronic components such as vacuum394
259
cleaners, compressors for refrigerators and air conditioners.
They also adapt to transportation equipment and manufacturing
259
devices of automotive tires.

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Automatic Assembly Systems of Home Appliances04

Corporate Social Responsibility ReportTo pic s

Deepening and expanding existing business / Venturing into growing markets

Medium-Term Management Plan

Sales of semiconductor production equipment by region (Actualand forecast)Group Slogan of Medium-term Management Plan Overview for FY 2018–2020.
Groupslogan（10 million USD）

Korea

Hirata is striving to become the Top Integrator of
Production Systems for Our Global Customers.

TaiwanChina

Outline and Positioning
2018-2020

Strengthening order-receiving/production/development systems

Strengthening
management bases

Deepening and expanding existing business
Venturing into growing markets- Toward continuous growth 2009-2014

Establishing mass production business and commercialization

2015-2017

・Accommodate increasing demand forsemiconductors in association with the expansion of
applications
・Respond to the domestic production ofsemiconductors in China
・Development and proposals in Hirata's specialty
areas (vacuum, coating, lamination, lasers, androbotics technologies)
Forecast of the share of EV (%) in the number of new cars
sold in each country

Fundamental Principles

Aims of Medium-termManagement Plan

Acquiring new regions and customers inthe semiconductor field

Acquiring new regions andcustomers in the EV field（10 million USD）

Korea

・Acquire European customers and secure market share
Taiwanin Europe, which is leading global efforts related toautomotive fuel economy restriction
・Development and proposals in Hirata's specialty areas
China(motors/EDU, batteries, inverters)

2018-2020

Sales plan (consolidated basis)(Upper left) Prepared by the Company in reference to SEMI - press releases on December 15, 2015 and December 12, 2017
(Lower right) Bloomberg New Energy Finance“Electric Vehicle Outlook 2017”

Sales result (consolidated basis)

Establishing mass production business and commercialization
Net sales remained atthe 30-40 billion yen
level[Plan]Net sales consistently
above 50 billion yen
Operating income margin
5% or more

[Plan]Net sales consistently above
100 billion yen
Operating income margin
10% or more

Towardcontinuous
growthMass Production

・Reduce cost by mass production.
・Launch high-performance and high-quality production lines inshort lead time by combining standard modules (ACS concept).
・Develop a system by which products needed in the market are
offered for sale with the required quantity and timing.

Strengthening order-receiving/production/development systems（10 million USD）

We expect opportunities for receiving orders to increase in the semiconductor and automobile

Strengthening order-receiving/production/ fields.Korea
To cope with the production expansion while providing the products with the quality required bydevelopment systems
customers, we will implement the following capital investment and research and development.
TaiwanMedium-term Management Plan
2015-2017 (Actual)

Details

2018-2020
China

Amount of capital
investment andother items

55

150

Research andDevelopment

20

50 ・Develop process compatible with next-generation

・Increase in-house fabrication of machined components by
updating machining devices.
・Investment related to M&A and strategic alliances
・Develop process equipment for EV, batteries.
equipment in the semiconductor field.

(Unit: 100 million yen)

New Plant in Kumamoto

We will upgrade to new equipment to improve production efficiency
in new plants where integrated production is possible, frommachining parts to assembling.

We will also establish a clean room there to manufacture various
products including robots designed for clean rooms.

Conceptual image

05

The Global Production Engineering Company

Move to mass production by modularizing individual design products

Construction started on January 15, 2018
Floor area of the new plant: 15,841 m2

Commercialization

Development and sales promotion of single item goods

・Select components for potential unit sales from our own existing product line.
・Develop new products through allianceswith other companies and strengthen sales
promotion through the acquisition of sales
channels.
・Establish production systems at affiliatedcompanies overseas.
・Unify Hirata branding.
(Unify the design, color, and other aspects
of products)

06Corporate Social Responsibility Report

Topics
Product production, sales and technology

Company highlights from April 2017 to March 2018

Hirata received a“Best Partner Award”from Canon
Tokki Corporation
Hirata Corporation (hereinafter Hirata) continuously receives orders from Canon Tokki Corporation (hereinafter
Canon Tokki) for vacuum deposition equipment, which is the heart of organic EL panel production equipment.
Recently, Hirata received the“Best Partner Award”for our contribution to the organic EL panel production
business of Canon Tokki.
We see this award as a validation of ourtechnology and production capability for
vacuum deposition equipment, which Hirata
supplies to Canon Tokki.
Hirata will continue to supply Canon
Tokki with products which will build on andimprove our excellent reputation.

■ Start of production and sales of SCARA typerobots by our subsidiary in China
Hirata Automated Machinery (Shanghai) Co., Ltd. (hereinafterHAS), a subsidiary of Hirata Corporation in China, started
production and sales of SCARA type robots AR-F from July
2017.
Previously, these products to be sold in China have been
External appearance of the HAS plant, our subsidiary in China
manufactured in Japan and transported to China. However,now HAS is capable of handling everything about theseproducts, including procurement, quality inspection, manufacture and sales, and wewere able to reduce costs and lead-times, which have been concerns in the past.
In the future, we will focus on sales promotion and enhancement ofcompetitiveness by using our existing sales networks to respond to strong demandin the China market.
In addition, we will upgrade and expand the variation of robots sold by HAS to
actively enter the robotics market in China.
SCARA type robot AR-F

Together with Mr. Shigeyuki Uzawa, Presid
ent and COO of Canon Tokki Corporation

Vacuum deposition equipment(image)Starting construction of new plant in Kumamotoscheduled for completion in 2020
Hirata Corporation (hereinafter Hirata) plans to build their headquarters office, a three-story headquarters
building (total floor area: 6,000 m2) structurally integrated with the four-story plant (total floor area: 15,841 m2).
Following the Kumamoto earthquakes that occurred in 2016 and also taking into account structural safety,
Hirata aims to build plants where employees can work safely and about which Hirata can boast to customers
around the world.
In addition, Hirata wants to contribute to the local community by promoting employment and improving
the economy in Kumamoto through its
business.
Construction of the new plant isscheduled to start on January 15, 2018
and complete in January 2020.

Image of the new plant07

The Global Production Engineering Company■ Hirata's booth at the International Exhibition
Hirata Corporation (hereinafter Hirata) hosted a booth at the International Robot Exhibition 2017 held at Tokyo
Big Sight from November 29, 2017 to December 2, 2017.
There were 3 main displays. The first was in-house robotics, such as vertical articulated robots, horizontal
articulated robots, and demonstrations of a 3D picking assembly line using five orthogonal type robots. Anotherwas an introduction of the Smart Factory (a collaboration with Internet Initiative Japan Inc. which was announced
on October 19, 2017), which can help manage production lines remotely and provide maintenance services
with IoT. The last one was having interested attendees take a virtual factory tour using 3D CAD. Hirata displayed
its technological ability as a system integrator that can offer reliable production engineering ranging frommechanical/software design and programming for manufacturing all the way to IoT integration, which differs fromgeneral-purpose robot manufacturers.

Demonstration of assemblyline using five robots

Introduction of Smart Factory08

Corporate Social Responsibility ReportManagement
Corporate Governance

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

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

Basic StanceCompliance Charter

At Hirata Corporation, as a company targeting the global market, we promote the effective management as wellas the emphasis on corporate governance to fulfill the social responsibilities, while also enriching the compliance
Unit millions of yen
Consolidated
system and by planning to strengthen theon-consolidated
competitivenessof businessto improve the corporate value.
94,163Moreover, we believe that companies should assume and stand in the shoes of the public, public interest,
52,14580,54250,000and social factors and keep a good relationship with all of our stakeholders will lead to the improvementof 47,129
69,745
shareholder return.
62,78440,00030,00038,19738,19733,718

Corporate Governance Framework
33,71838,14653,04852,14547,129

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80,54262,784

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

Code of Conductismissal

irectors

Representati e

37,725

Based on our business principles, we at Hirata Corporation are fully awareof our mission and role as a corporate entity with respect to our valued
customers, shareholders, business partners, employees as well as themembers of our local community and, in order to make a contribution tosociety at large, the following Code of Conduct is applied to all employeesof every company in the Hirata Group with every single employee having
the responsibility of maintaining and improving upon them.

20,000eneral meetin o s are olders

oard o53,04828,162*Directors Number is as of June 27, 2018

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Fundamental Principles

37,725

10,000
The Board of Directors at Hirata Corporation consists of 12 directors (including 2 outside directors).
The appropriateness of the president’s duties in the Board of Directors is audited by the Board0 of Auditors
ar-14
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ar-16
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including an external auditor and all audit members.
The Internal Audit Department, which wasestablished
as a department
reporting to the President,
Unit millions ofdirectlyyenon-consolidated
Consolidated
9,247
conducts audits of the Business and Administration Divisions in collaboration and cooperation with the auditors.
3,500
8,039
For important matters of compliance, the Company will consult with legal advisers if necessary
to receive useful
3,000
advice.
6,182
6,066
2,500
1,962
2,000
The Company has introduced a management meeting and executive officer system, and 14 executive
officers
1,658
1,500
(10 of whom also serve as directors) are working to strengthen corporate governance by carryingout their duties
929
2,825
1,000
2,345
quickly and accurately in each of their areas of responsibility,
while also participating in discussions
on important
725
1,962
500
394
matters relating to the execution of business at1,658
management
meetings.
929
0725
In addition, as of June 1 2018, the Company established the Nomination and Compensation-500
Advisory
Committee
259
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as a voluntary advisory body of the Board of Directors.

09

Compliance, Corporate Ethics

Financiala ditors

2,825
2,345

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 andwork to build fair, just and transparent relations with business 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 fair method
always in accordance with relevant laws and statutes.
We shall take all the proper precautions whenever handling non-disclosed
corporate information (insider information) making sure there is no profitsharing or favors bestowed to individuals involved in the transaction ofequity 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 inways 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 thecommunity.
We are against antisocial movements and organizations that threaten theorder and security of the citizenry and vow 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 our valued
customers' personal information but also our own secret corporate
information and employees' confidential data, which we vow never toillegally or unfairly, disclose or leak either during their employment 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 Code of
Conduct in the event of their detection during the course of the executionof business in accordance with the same.
Should such a report be issued, the employee or employees in question
shall be protected from liability.

Compliance Education

Hirata Corporation provides various
opportunities to educate employees
regarding business principles and thecompliance charter in order to ensurecompliance with the relevant laws andregulations in Japan and overseas, company
regulations, and any other social norms.
In FY2018, we provided training that
focused on the prevention of insider trading,extending the scope of targets to include
domestic affiliated companies.
We worked to reduce the risks associatedwith insider trading within the Hirata
Group by providing training to officers andemployees of domestic affiliated companies,
using specific examples of actions to betaken by employees to ensure the trust ofshareholders and investors and the integrity
and fairness of securities trading.
If concerning matters related to complianceoccur, internal notification will be issued, andtraining for anyone related will be conducted
to improve the awareness of compliance andto prevent the relapse of this.

Helpline

From May 2008, Hirata Corporation, under
our Code of Conduct, established an externalreporting contact, called Hirata Helpline, in
addition to the internal reporting contact for
employees to report problems that violate
laws and internal regulations, and to address
potential risks that may violate laws andinternal regulations as early as possible.
“Hirata Helpline”has a principle ofanonymous reporting and a whistleblower shall not face retaliation due towhistleblowing.
The investigation result will be reported to
the Compliance Committee and addressed
appropriately.

10

1,500

1,962

1,658
725

Risk Management

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Management

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

In order to protect information and information assets (information devices and the like) from threats suchas leakage and damage and to safely carry out business activities, Hirata Corporation is working to develop
information security management regulations and prevent leakage of confidential information and other similar
incidents through systems and activities centering on the information001
security committee.
R

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 of laws, 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 for service transactions”by which individual permission from the Minister of
Economy, Trade and Industry is not required with respect to some goods and services.

11

Together with Customers

As the best partner of our customers, we will endeavor to deliver trustworthiness and satisfaction
to the whole world, being sure to embody various requests for quality, safety, and productivity.

A ditominationand may hinder business
nternaloperations,
A dit epartment
To avoid unexpected disasters and problems
that
we will work
to mitigate
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ompensation
e
al
Ad
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ommitteerisks to the business continuity and, furthermore, to customers as well as to resume
A dit our business operations in
ad isorper ision
the shortest possible time after
etc a disaster by considering all possible risks in advance and taking into accountprevention, protection, and reduction measures.
・In the unlikely event that our company itself is the victim of a disaster, we make re-establishment of ourE ec ti esbusiness a priority to ensure that we are there to meet the needs of our customers and/or stricken areas that
require assistance.
ales epartment ana ement epartment
・In advance of any possible phenomena (disasters, unanticipated problems), we implement precautions andrestoration plans taking into account any possible risks which may exert a large effect on core business
operations, as well as continually practice disaster prevention and BCP training.
・During normal times, we provide training for employees, implementing a clearly defined plan of action in
emergencies and disasters.
Confirmation of safety of employees inEmer ency incident
case of disasters is a top priority item inthe efforts of BCP.
nitial response
P acti ation
ettin p Response ead arters and con rmin dama es and sa ety
Hirata Corporation has introduced
From
an external system of confirming safetyt e dayin order to confirm safety quickly andontactin c stomers s ppliers and a liates
efficiently.
With the above system, mail can beomm nity
Esta lis in
P and systems
Acti ities
sent to confirm safety from the outside or
From e days
remote areas and totals can be confirmed. to e mont s
orrespondence to employeesorrespondence to c stomers
We regularly send test emails as drills
Financial Action
ec rin o F nds Payment
siness reso rces
and cooperati e companies
Emer ency meas res and restoration
Ad stin and restorin siness transactions
and F ndrasin
for employees to respond quickly.
Moreover, we believe that companies
thinking and acting from the positions ofRestoration
the public, public interest, and society andmaintaining good relationships with all of their stakeholders will lead to improvements for shareholders.

Export Control

Social Report

Financiala ditors

Quality Assurance

Hirata Corporation engages in quality assurance activities based on the framework topromote a Quality Management System (QMS), and has completed the transition to the2015 version of ISO9001 in October 2017.
By integrating with the business management system, we will ensure
the reinforcement of quality assurance systems as well as enhance
performance.
Above all, we work on the thorough implementation of change
management in order to eliminate the degradation of quality of mass
produced products in the course of manufacturing.
In FY2017, we provided education not only to staff within the
Company but also to HAS, our subsidiary in China.
We work on early detection of problems and prevention of failures atthe production stage by raising the awareness, enhancing skills, and risk
response capabilities of staff engaged in production.
Change management education for internal workers
From FY2017, we introduced an internal process examination
conducted by internal third parties to check the status of production
PlanDomanagement of products from a third-party perspective.
Establishing
Operation of management
standards
standards (production)
We work to improve quality and productivity by solving problems
Reinforcementofproduction
identified by the examination and sharing information throughout the
management systems using the PDCA
cycle
FY2015company.
1 Prod ct
FY2016E al ation
Responding to changes in the market environment in a flexible
5
FY2017
ActionCheckmanner, we will achieve productivity enhancement and stable quality
Correction andInternal process
5 orporate
examinationo personal ation improvement of systems2-1 E al ationand continue to improve production management systems by usingE thein c ar e ales
Processofreinforcing
production
management
PDCA cycle to obtain trust and satisfaction from our customers.
2
systems using the PDCA cycle

Customer Satisfaction

We are working to improve customer satisfaction
through the opportunity for each department to interact
with customers, collecting customer's opinions andsuggestions to improve our products, as well as ourservice support.
Every year, all Hirata Group companies distributecustomer satisfaction surveys with a common set ofquestions to all customers.
Based on these valuable opinions, we will strive towards
strengthening the service support and cooperation withdepartments in the future.

1

er ice2-2 E al ation o person
al ation satisfaction survey results for FY2015 to FY2017
fromEcustomer
in c ar e esi nSatisfaction weighted average score (5 points ma .)1 Prod ct
ec nolo Ey al ation
E al5 ation
5

orporate
E al ation

FY20152- E al ation o person
FY2016in c ar e an act re
FY20172-1 E al ation o person
in c ar e ales21

er iceE al ation

2-2 E al ation o person
in c ar e esi n

2- E al ation o person
in c ar e an act reec nolo y
E al ation

Continuity for the future
ontin alseopinion

ill not se

2015

7

20

2016

76

2

2017

77

0

2

2
50

100

12

The Global Production Engineering Company

ontin alseopinion

ill not seCorporate Social Responsibility ReportSocial Report
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 July 2017, we held the 2017 Supplier Meeting“Evening of appreciation (Sincere gratitude withKumamoto)”at a hotel in Kumamoto City withattendees from 132 suppliers, for a total of 210
people including officers and employees of theCompany.
At this meeting, we focused mainly on financial
results and trends in the Hirata Group as wellas the business plan and procurement policyof each department. We also presented lettersof appreciation to 5 companies that have been
supporting the Company for more than 5 decades
and 18 companies that have been conducting
transactions with the Company for over 40 years,
and honored 15 companies (best performance
awards to 4 companies and best supplier awards to
11 companies) that had contributed greatly to the
production activities of Hirata Corporation in FY2016.
This meeting was where we expressed our
gratitude to suppliers that support the Company anda wish for the restoration of Kumamoto.
We received some impressions of the meeting fromparticipants such as“I sincerely felt your wishes forthe restoration”“ I am very glad to hear the words ofgratitude directly from Hirata”, and“I can make use of
these business trends in the future”.

VOICE

Skill Training Seminars,
Study Sessions
We held a training session to enhance welding skills
and a seminar to support the development of humanresources, aiming to build an ongoing partnershipwith suppliers.
In October 2017, we provided a practical workshop
to 20 participants from 12 suppliers, inviting a topclass welding engineer in Japan as an instructor.
In addition to the business succession/executive
fostering support seminars regarding reporting,contacting and information sharing, and coaching
seminars, we also held 4 Workplace Improvement
and Next Generation Manager Fostering seminars,
which were newly added this year.
We received positive feedback from someparticipants
saying“Ilearned awide rangeof human
resource
creation andmanagement/sales strategies from a specialist andimmediately put them into practice at the workplace.
I expect to continue these activities”.
Hirata Corporation will review the contents forfurther improvement to strengthen the relationshipwith suppliers for the future.

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.

1. Respect for human rights and diversity

We shall respect the individual character and the human rights
of all people working in the Group.
We definitely do not do any harsh and inhumane treatment
including sexual harassment, sexual abuse, abuse of authority,
corporal punishment, mental or physical coercion or verbal
abuse of workers.
We definitely do not employ child labor or forced labor.
We shall treat and appraise each and every employee in a fairand impartial manner.
We shall not discriminate against any employee on the basisof nationality, race, religion, age, gender, physical or mental
disability, or other legally protected attributes.

2. HR activities in compliance with applicable laws and regulations
We shall comply with all applicable laws and regulations ofeach region regarding the employees' rights.
The rights of workers to associate freely, join or not join labor
unions, seek representation, and join workers councils inaccordance with local laws shall be respected.

3. Fair, equal, and transparent HR system

We aim for a fair, equal and transparent HR system.

4. Support for skill development

Based upon our Corporate Philosophy of "Makes the best useof its members", we shall positively support for professional
development.

We support professional development.

Hirata Corporation believes that it is important tocreate a work environment where employees growand realize their potential under our management
philosophy,“Get the best from each person”.
Following this philosophy, we have improved OFFJT education year by year, to include stratified
educational programs and theme-based educational
programs.
An overseas posting program for young employees
was started from the previous fiscal year as part ofour support for capacity development, in addition toprograms that have been implemented every year,
and we additionally made three internal opportunity
announcements in FY2017, which made it possible topost selected staff to all overseas subsidiaries.
We will continue to implement this program to offer
opportunities where young people, who will leadthe next generation, can develop into highly capable
leaders who can perform on a global scale.
Considering the change in the market listing to
the First Section of the Tokyo Stock Exchange as
one of our milestones, we will put a high priority on
the development of human resources so that theCompany and its employees will be able to live up to
expectations of our new surroundings.

VOICE

Aiming to be Your Real Partner

Cultivate a flexible mind through learning different cultures

Executive Officer and Deputy General Manager for Sales Division, Industrial
Machinery Business Division of NSK Ltd. Mr. Tatsuya Atarashi

HirataEngineering Europe GmbH (Germany)

Our company has been supplying ball screws and linear guides to Hirata Corporation formany years.
At this 2017 Supplier Meeting, we received the prestigious best supplier award. I amvery honored that the quality, prices, and deliveries provided by our company have beencommended.
Through various business transactions with Hirata Corporation, we have fostered the abilities
required to respond to the needs and requests of Hirata Corporation which has abundant
knowledge regarding manufacturing and production equipment, and furthermore, helped us
train our proposal skills to help promote our products.
As a Your Real Partner that can contribute to further expansion of business, we will do ourbest to live up to expectations.

13

Together with Employees

The Global Production Engineering Company

Megumi Hatanaka*As of April 2018

With the aim to help maintain smooth communication in entering into a contract for new
projects between Hirata Engineering Europe GmbH (Germany) and Japan, I applied for thisoverseas posting program and left for a new post in Germany.
I am sincerely grateful that I could receiving such a challenging opportunity.
Prior to the posting, during training in German language and on different cultures, I learned
how to deal with situations that arise from cultural backgrounds or ways of thinking that differ
from mine.
In practice, though there will be cases where I face complicated situations, I will strive todevelop European markets, learning how to deal with such cases and cultivating a flexible mind
to respond whether overseas or in Japan.

14Corporate Social Responsibility ReportSocial Report
Together with Employees
Respecting human rights and diversity■ Efforts for Re-employment
Under the "Re-employment System" established in 2006, the Company has entered into re-employment agreements withretired employees so that they can continue to apply their skills, utilizing
60
their superior knowledge and experience.
RetiredRe-employment Re-employed
Fiscal Year
Employees
ApplicantsPersons
We make efforts so that re-employed persons can work in accordance
2013
23
17
17
with their respective lifestyles, adjusting and considering working days and
2014
11
9
9
hours based on the desires of re-employed persons and the content ofeach business contract.
2015
13
9
9
Based on the Law Concerning Stabilization of Employment of Older
2016
27
23
23
Persons as revised in April 2013, we have revised our re-employment
2017
17
14
14
system, and reemploy those who desire until 65 years of age.
■ Proactive Employment of Disabled Persons
The employment rate of disabled persons for FY2017 was 1.50%, falling below the statutory employment rate of 2.0%
after the revision.
Efforts were made this fiscal year to have staff participate in briefing sessions hosted by relevant organizations and to acquire
trainees from vocational schools, which resulted in the recruitment of four
employees in FY2018.
2.50
2.11
We will also continuously endeavor to achieve statutory employment rates.
1.74
egal
2.00
Employment■ Measures Against Harassment
1.50
1.95
Ratio
1.50
We held power and sexual harassment workshops during compliance2.0
1.36
training for employees (60 minute sessions, 12 times/year) and training for 1.00
newly appointed section managers and chiefs (240 minute sessions, once
0.50（ ） 2013 2014 2015 2016 2017 (Fiscal Year)a year), respectively.
■ Retirement Ceremony
We hold retirement ceremonies two times a year in June and December to commemorate those who are beginning a
new phase of life in retirement.
It is a ceremony to show Hirata Corporation's gratitude towards those who have supported our company for years on end.
Retirees should consider this ceremony to be the best time to start their second life or, for rehired employees, to be thebest opportunity to make a new start with a fresh state of mind.

Work-life Balance

In FY2017, in addition to the existing policies of prohibiting overtime work on Wednesdays, paydays, andbonus paydays, prohibiting overtime work past midnight, and prohibiting overtime work on statutory holidays, we
implemented a new policy by which working hours are managed based on actual working hours without exceptions,abolishing the discretionary work system that had been introduced mainly to the design division and a deemed
working hours system applied to the sales division. As a result of theintroduction of management based on actual working hours, the working
Fiscal Year
FY2015 FY2016 FY2017
system has been changed to the one by which we can focus on working
15
17
25
hours and productivity more than before.
111Furthermore, we implemented measures putting top priority on the
91420
health of employees, such as extending 3-day good-life leave to 5 days0
10
a year and prohibiting spending all of Sundays only for travelling during2
02
business trips.
00
1
As a result, the average overtime work in FY2017 for the whole
company decreased by 1.49 hours from FY2016 to 25.07 hours.
1
We aim to create a better workplace environment to facilitate further0
improvements in work-life balance.

15

The Global Production Engineering Company

VOICE

Thank you colleagues for your understanding andcooperation. I hope I can support you in turn.
Administration Dept.
Kansai Div. Asako Ichiki
I obtained childcare leave for my two children. Now, I attend work using a shorter working hoursystem.
When I was away from work for a long period of time, I felt unease about whether I could return towork again. However, in-house magazines and various notices sent to me by the personnel department
provided me with information on the state of the Company, which was a spiritual support for me.
I also felt very encouraged when colleagues helped me when I returned to work.
I greatly appreciate being able to continue my work while receiving the understanding andcooperation of colleagues and support of my family members.
In the past few years, use of the system relating to childcare has been increasing in the Kansai
Business Division, where I work.
I hope I can support those who use this system in the future, making use of my experience.

Labor Safety and HealthWith the slogan,“All employee participation in zero accidents”, Hirata Corporation has formed safety andhealth committees in each plant and a company-wide safety and health committee, which oversees the whole
company, to promote systematic safety and health activities.
The company-wide safety and health committee receives reports from each department relating to activities
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 and health.
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 thecompany-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 the morning meeting held at each work site.
We ensure the importance of safety by providing safety education to employees as well as contracting
companies for work in plants and also distributing handbooks that contain the rules of Hirata Corporation.
In FY2017, two occupational accidents occurred, and the consecutive zero occupational accident days havestopped.
In order to achieve“zero occupational accident for 365 days”, we will work to ensure awareness of safety andreinforce KYT and patrols.

TOPICS

Implementation of AED training

We have installed AEDs (Automated External Defibrillator) at each plant.
Every year, to prepare for emergencies, we implement training for AED usage andcardiopulmonary resuscitation (CPR), in which about 50 employees participate.

16

Corporate Social Responsibility ReportSocial Report
Together with Shareholders and Investors

Together with Local Communities

IR Activity Policy

Providing support and assistance to Kumamoto

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

Hirata Corporation believes that a fair and equal pricing of shares is on the premise that information on
investment decisions are being shared appropriately in a timely manner. Therefore, we recognize the need tofairly, equally, accurately, and quickly provide the investors with important company information that influences
investment decisions.
In the case of mandatory disclosure materials, such as annual securities reports, quarterly reports and material
facts or other company information, Hirata Corporation discloses the contents thereof correctly.

■Holding information sessions for investors

With a purpose of publicizing Hirata Corporation and gaining investors, wehold company information sessions and financial results briefing for institutional
investors, analysts, and private investors.
In 2017, we held the sessions in Tokyo, Kyoto, Nagoya, Kobe, and Sapporo andhad many participants.
Briefing for Indivisual 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 Corporation 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 andquarterly
financial results
These
documents explain
the summary offinancial resultsin each term
for an easier
understanding andare used as materials for financial results briefing for
institutional investors in the final and second quarter
financial results.
② Hirata Report
This report, for shareholders,
describes the business content,
results, plans and topics for aneasier understanding and isissued and sent by mail after
the disclosure of the final andsecond quarter financial results.

17

The Global Production Engineering Company③ General Meeting of
Shareholders
These are materials
used for explanations
at general meetings ofshareholders.
④“To Our Shareholders and Investors”on the Hirata
Corporation Website
This page is a collectionof information for ourshareholders and investors
with the intention ofpromoting understandingof Hirata Corporation.

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.

Hirata Corporation will work to help the restoration of Kumamoto through the following community support
projects.
■ Supporting the restoration of Kumamoto Castle through a shareholder special benefit plan
In FY2016, Hirata Corporation introduced the following shareholder special
benefit plan aiming to provide support for earthquake restoration and therestoration of Kumamoto Castle.
･Donations for rebuilding Kumamoto Castle or QUO cards with donations forrebuilding Kumamoto Castle･Granting the privilege of the“revival lord of the castle”identification toparticipating shareholders■ Establishing a joint research course with the Faculty of Medical and Pharmaceutical Sciences of Kumamoto
University
As of July 1, 2017, we established a joint research course for natural drug
discovery in collaboration with the Faculty of Medical and Pharmaceutical
Sciences of Kumamoto University, thereby carrying out the following research anddevelopment activities.
･Drug discovery and development using existing technologies･Collaboration and cooperation for the development of therapeutic agents fordiseases, such as AIDS, chronic kidney disease, Alzheimer’s disease, and discovering drug candidate substances.
■ Main sponsor for Football J2 League team Roasso Kumamoto in 2018
Hirata is a uniform sponsor of Football J2 League team Roasso Kumamoto.
Hirata Corporation fully understands Roasso Kumamoto’s philosophy“Energy toPeople, Dreams to Children, and Power to Kumamoto”, and supports their activities.
■Sponsor for the Kumamoto Castle Marathon
Hirata Corporation supported the Kumamoto Castle Marathon held on February 18,2018.

Internships

Hirata Corporation offers internships to "experience work," which gives the students opportunities to think "whatit means to have a corporate job," or "how much of their academic knowledge can be applied."
In the summer and winter of 2016, we accepted 56 students in total from technical colleges, universities, andtechnical high schools.
We also have accepted over 500 high school students for a factory tour to help them have a better grasp on
our occupation and select their academic courses efficiently.
We have also been promoting global human resource development in recent years. This year, we accepted 59
people and gave them factory tours at our overseas affiliated companies, HCT (Taiwan) and HSL (Singapore).

18

Corporate Social Responsibility Report

Environmental Goals

Environmental Report○ : achieved, △ : nearly achieved, × : unachieved
Categories

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 load in all aspects ofour 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 and cooperative
relations with relevant government agencies
and contributing to the local society.
③ Striving to improve productivity and conserve
the environment throughout all our businessactivities and production processes, including
sales, design, manufacturing, installation, andafter-sales service.
・Reducing energy usage and the emission ofgreenhouse gases
・Reducing waste and promoting recycle
・Reducing harmful materials and using 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.

GlobalWarming
Countermeasures

Environmental Management System■ Structure of Promotion for Environmental
Management System
Hirata Corporation has built up a structure ofpromotion for the Environmental Management System(EMS) led by top management and environmental
management manager and obtained an international
standard ISO14001 certification at the Kumamoto,
Kanto, and Kansai region production bases.
■ Responses to ISO14001:2015
In October 2017, All of our production bases that
had obtained ISO14001 certification completed thetransition to the 2015 version thereof.
By integrating business management systems andimproving compliance, we will ensure the efficiencyof environmental management systems as well as
enhance performance.

Abiding by laws and regulations
and preventing pollution
In June 2017, the BOD* value of the drainage in the
Kumamoto Plant exceeded the standard value specified
in the Water Pollution Prevention Act, and we received awarning and guidance from Kumamoto city.
The incident was caused by drainage from a septic tankinstalled at the Kumamoto Plant, and we improved theoperating mode of the septic tank and conducted draincleaning.
Corrective measures have been completed because adrain measurement conducted thereafter showed that the
BOD value was within the standard value.
To prevent recurrence, we will ensure thoroughimplementation of facility management and enhanced
monitoring of drainage conditions.
Except for the above incident, there were no violationof laws and regulations,accidents, or complaints
against Hirata
Corporation in FY2017.
* BOD: BOD stands
for Biological Oxygen
Demand, which is theindex of water pollution.

Reducing CO2
emissions fromproducing energy
saving products

Environmentally friendly designs
Conducted product assessments
Implementing energy saving designs on and designed smaller and lighter
the products
products○

Continue conducting productassessments○

Change from objective
management to operational
management and usage
monitoring.

△Operational management
applies due to the difficulty in
reducing waste wood, waste oil,
and waste plastic that accountfor the majority of emissions.

Implemented product assessments
and designed smaller and lighter
products○

Continue conducting productassessments

10% decrease in comparison withactual painting production
Reduction by the increase in painting
production and switching to low
toxicity products.

○

Change from objective
management to operational
management and usage
monitoring.

○

Improved efficiency of investigations
on chemical substances containedin products and implemented
investigations on chemical
substances contained in purchased
products.

44% decrease in comparison with actual
productionMore than 3% decrease in water usage
Significant reduction due to the effect ofin comparison with actural production
the introduction of the water circulatingin 2014.
system in the Kumamoto region and anincrease in production.
1% decrease in comparison with actualMore than 3% decrease in waste inproduction
comparison with actual production in
In association with the increase in2014
production, emissions of waste wood,
waste oil, and waste plastic increased.

Producing smaller,
lighter, andrecyclable products

Environmentally friendly designs
Implementing smaller and lighter
designs on the products

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

ChemicalSubstance
Management Managing chemical
substances
contained in
products

Implemented investigations on
Implementing the management ofchemical substances contained in mass- chemical substances contained in
products and confirmed toxicity.
produced products(Building and operating an information Provided education to employees(see Page 22).
management system)

Environmental Performance

We are pursuing to reduce the environmental load and achieve our environmental goals by understanding the impact
made by our business activities.
Total energy
input (Incrude oil equivalent) (kℓ)■ Totalenergyinput

of waterinput(m )■ Amount
Amountofresource
water
resources
input
3

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

Energy consumption per Unit

0.200

5,000
4,205

5,000
4,000
4,000
3,000

3,298

3,364

3,298
0.097

3,364
0.088

3,000
2,000 0.097

0.088

2,000
1,000
1,000
0

（kℓ）
0

（kℓ）

3,222

3,222
0.080
0.080

4,205

4,182

4,182

0.200
0.150

0.150
0.100
0.066

0.060

0.100

0.066

0.060

0.050

0.050
FY2013

FY2014FY2015FY2016FY2017FY2013

FY2014FY2015FY2016FY2017

0.000

0.000

CO2 Emissions (t-CO2)
CO2 Emission Per Unit
CO2 Emissions (t-CO2)
CO2 Emission Per Unit
10,00010,000
8,000

0.228

0.228
7,788
7,788

7,947

0.207
7,947

0.207

7,354

8,785

8,785

0.182
7,354

0.182

6,000
4,000

0.139

0.139

FY2013

FY2014FY2014FY2015FY2015FY2016FY2016FY2017FY2013

FY2014FY2015FY2013

FY2014FY2015FY2016FY2017FY2016FY20170.0

Amount of PRTR Substances per
Consumption
PRTR
Substances(kg)
hundred millionofJPY
actualpainting production(kg/million yen)Amount of PRTR Substances per
15,000150.0
hundred million JPY actual painting production (kg/million yen)

15,00012,000

150.0
120.0

12,000
9,000

120.0
90.0

71.8

9,000
6,000

71.8
6,934
6,934

6,000
3,000

6,761
45.6
6,761
45.6

8,190
5,809

58.9
8,190

37.4
5,809

58.9

3,000
0

(m3/hundred million
yen)
0.0

（kg）
0

（kg）

6,681 90.0
60.0

40.9
6,681

40.9

37.4

(m3/hundred million yen)Amount of industrial wastes (t)Amount of industrial wastes target substances per
hundred million
JPY actualwastes
production
Amountof industrial(t) (t/hundred million yen)Amount of industrial wastes target substances per
1,000 hundred million JPY actual production (t/hundred million yen)
2.0

0.200

800
600

0.200

FY2017

0

1,000
800

0.100

0.100

FY2013

100.0

（㎥）

0.300

0.116

0.116

4,000
2,000
2,000
0

8,111

20,0000Consumption of PRTR Substances(kg)Substances■ Consumptionof PRTR

FY2013

FY2014FY2015FY2016FY2013

FY2014FY2015FY2016FY2017

60.0
30.0
30.0
0.0

(kg/million0.0
yen)
FY2017(kg/million yen)

■ Industrial Wastes
0.300

8,111

Amount of water resource input per
3
Amountof water
input (m)
million yen)hundred million
JPY resource
actual production(m3/hundred
Amount of water resource input per
400.0
100,000
hundred million JPY actual production94,309(m3/hundred million yen)
80,702400.0
100,000
82,319 94,309
80,000 76,056 79,398
80,702300.0
82,31980,000 76,056 79,398
300.0
60,000 222.6
206.6
203.4
200.0
60,000 222.6
148.9
206.6
203.4
40,000115.6 200.0
148.9
40,000115.6 100.0
20,000（㎥）■ Amount of CO2 Emissions（t-CO2）The Global Production Engineering Company

Reducing CO2
emissions

Using theresources Reducing andeffectively recycling industrial
wastes（t-CO02）19

FY2017 Accomplishments
Evaluation
FY2018 Plans
32% decrease in comparison with actual
production
Focus efforts on the reduction ofMore than 3% decrease in CO2 emission Significant decrease due to theelectricity usage in particular byin comparison with actual production in introduction of energy-saving equipment○
the introduction of energy-savingsuch as LED-lighting and high-efficiency
2014
equipment and reinforcement of
air conditioners, as well as changes inenergy management.
the emission factor of greenhouse gases.

Reducing water
usage

8,000
6,000

Drainage inspection at the Kumamoto Plant

Long –term Goals (FY2015-2017)

600
400
400
200

0.000

200
0

0.000

（t）
0

（t）

2.0

0.97

0.97
331
331

671

675

0.98

1.06

671
1.06

675
0.97

0.98
375

428
1.06

1.06

0.97

375

428

1.5

1.5
1.0

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

1.0
0.5

0.5
FY2013

FY2014FY2015FY2016FY2017FY2013

FY2014FY2015FY2016FY20170.0(t/hundred million yen)
0.0

(t/hundred million yen)20

Corporate Social Responsibility Report

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

Environmental Load

Environmental loads in 2017 are as follows.

Inputs●Energy
Electricity …14,843 thousand kWh
LPG ……………………………… 98t
Gasoline ……………………… 4t
Kerosene ……………………… 38t
Light Oil …………………… 274t
●Water Resources
Underground Water … 71,420㎥
Clean Water …………… 9,282㎥●Chemical Substances
Substances for which PRTR Law applies…6.7t

Hirata Corporation Business Activities

Outputs●Design anddevelopment●Emissions in the Atmosphere
CO2 ………………… 8,111t-CO2●Procurement●WastesIndustrial Wastes ………… 675t
General Wastes …………… 34t
Valuable Resources ……… 710t

●Production
Processing
Coating
Assembly●Chemical Substances(Substances for which PRTR Law applies)
Toluene ………………………4.3t
Xylene …………………………0.6t
1,2,4-Trimethylbenzene ……0.8t
Others …………………………0.9t

Environmental Accounting

Major Activities

Cost for Preventing Pollution

・Replacing septic tank

Investment―

26,343

Upstream and downstream costs

・ Investigation of chemical substances
contained in products

―

3,000

Administration Cost

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

36,312Social Activity Cost – Environmental preservation andimprovement

・Nature conservation and beautify
・Donations to environmental protection groups―

77

201,621

163,349(Unit: thousand yen)

TOPICS

Conversion to LED lights in plants
In FY2017, our Kumamoto Plant and Kumamoto Plant (East Plant) replaced mercury
lamps with LED lights.
As a result, we were able to reduce power consumption, cost, and waste emissions,and improve illuminance.
We will continue to introduce energy efficient products to save energy and prevent

21

The Global Production Engineering Company

Process Equipment Dept.
Equipment Business Div. Hideki Tokunaga

products is also an issue to be addressed.

Cost・Introduction of a cooling tower andwater circulation system
・Disposal of general and industrial wastes

Kumamoto Plant introducing LED lights

Aim to increase contribution to society by environmental consideration for products

In this Report, energy-saving is the main subject of environmental consideration. However, in expanding

95,489global warming.

VOICE

sales, how to respond to the regulations of each country with respect to chemical substances contained in

191,841

Global Environmental Protection Cost ・ Installing energy-saving equipment

Total■Organic EL and a new type of laser panel cutting system for LCD panels
We developed a new type of laser panel cutting systems necessary for
manufacturing panels for smartphones and tablets and started the provision of
the systems from October 2017.
We were able to combine four laser-irradiation oscillators into a single
oscillator at each processing stage, which reduced power consumption
resulting in energy-saving products.
We changed the panel cutting method from cutter to laser processing, which eliminated tooling exchanges for eachmodel and cut shape, and also improved the production efficiency at customers’factories.

We extracted risks and issues from various aspects, such as technique, cost, and delivery time, and then the2,128

Cost of Resource Cycle

Environmentally-Friendly Products

related parties repeatedly discussed and implemented measures with respect to these risks and issues.

9,780

Business Area Cost

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

These products are produced by drastically refined laser glass cutting systems that were developed in 2012.

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

Environmental Consideration for Products

I would like to increase my contribution to society through our products by addressing issues concerning the
reduction of hazardous substances.

Managing Chemical Substances Contained in Products

In order to respond to a chemical substance related laws and regulations in Japan and overseas, including European RoHS
Directive (*1) and REACH Regulations (*2), we will strengthen management of chemical substances contained in our products.
In FY2017, we conducted investigations with customers on the management of chemical substances contained in
products to confirm the status of any chemical substances present.
In addition, we provided compliance education to employees aiming to fully familiarize them with revisions to therelevant laws and regulations, such as RoHS Directives and REACH Regulations.
We also provided this education to HAS, a subsidiary in China, and also started implementation in groups managing
chemical substances contained in products.
We conducted investigations on chemical substances contained in products targeted at semiconductors, medicalrelated products, and mass-produced products and confirmed the state of any chemical substances present.
We also conduct investigations on frequently used electronic component inventory items that have high chemical risk.
Laws and regulations related to chemical substances have beenstrengthened year by year, such as through the addition of substances
prohibited by the RoHS Directive from July 2019.
To comply with the relevant laws and regulations and reduce risks posed byhazardous substances contained in products, we will continue to coordinate
with our customers and strengthen our management of such substances.
*1 RoHS Directive: Regulations on chemical substances in EU*2 REACH Regulations: Chemical substance management regulations in EU

Compliance Education（RoHS Directive・REACH Regulations）

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