CSR Report
2018

TOSHIBA PLANT SYSTEMS & SERVICES CORPORATION CSR REPORT 2018

TOSHIBA PLANT SYSTEMS & SERVICES CORPORATIONAt Toshiba Plant Systems & Services Corporation, each employee is
Commitmentcommitted to serving society through the provision of services, products
and systems that fulfill customer needs in the field of social infrastructure.

Management
VisionStandards ofConduct

An excellent company continuing profitable and sustainable growth

Toshiba Plant Systems & Services Corporation places top priority on life,

Company Data (As of March 31, 2018)
Company Name

Toshiba Plant Systems & Services Corporation

Address of Head Office

Tsurumi Toshiba Building
36-5, Tsurumichuo 4-chome, Tsurumi-ku, Yokohama City, Kanagawa, Japan

Representative

Masataka Hayashi,
President and Chief Executive Officer, Representative Director

Founded

October, 1923

Established

October, 1938

Paid-in Capital

11,876,021,006 yen

Our BusinessEngineering, procurement, construction, trial operation,
adjustments, and services for facilities and buildings targeting
power plants, substations, public facilities and general industry

Number of Employees

4,318 (Consolidated basis), 3,102 (Non-Consolidated basis)

safety and law compliance. At the same time, we will work to build
bonds of trust with society, including our customers and shareholders.

Contents
1

Commitment, Company Data

3

Toshiba Plant Systems & Services Group’s Value Creation Process

5

Top Message

7

FY2018 Medium-Term Management Plan (FY2018—FY2020)

9Feature: Clean Energy Power Generation Solutions

11

Toshiba Plant Systems & Services Group’s Business Domains

13

CSR Management15

FY2017 CSR Activities and FY2018 Issues and Goals

17■ Organizational Governance21■ Human Rights

22■ Labor Practices

27■ Consumer Issues

29■ Fair Operating Practices30

■ Community Involvement and Development

33

■ Environment

36

Highlights of Consolidated Financial Results

Editing Policy
The aim of the report is to provide disclosure related to the company and toallow all its stakeholders to better understand the company’s CSR-related
philosophy and initiatives as a whole.
This report details the initiatives and roles that the company plays in society
and with respect to the earth through its business activities.

Reporting period
This report generally covers the period from April 2017 through March 2018,
but also includes information on activities prior to and after this period.
Organizations covered in this report
This report covers certain group companies with a focus on Toshiba Plant
Systems & Services Corporation.
Expected timing of issuance of next report
July 2019
Reference guidelines
The international standard for social responsibility“ISO 26000”was referred
to in preparing this report.

12Toshiba Plant Systems & Services Group’s Value Creation Process
With the management vision of Toshiba Plant Systems & Services Corporation (the“Company”) and its group companies (collectively, the“Group”),“an excellent company
that continues profitable and sustainable growth,”we conduct our business activities.
Through our business activities we provide services, products, and systems to solve thevarious challenges facing society. By doing so, we aim to achieve sustainable growth while
creating value for society as well as customers and other stakeholders.
Social Issues

Invested Management Resources/Our Strengths

Further
improving social
infrastructureManagement Vision

An excellent company continuing
proﬁtable and sustainable growth

Research anddevelopment

FY2018 Medium-Term Management Plan (FY2018̶FY2020)
Enhancing costcompetitiveness

Financing
activity

Creating healthy
and positive
workplaces

Toshiba Plant Systems &Services Group s strengths

Creating a business model
to steadily achieve strong
earnings and growth

Sust
ainab
le

Pursuing innovation
through BCM*
management

Promoting
CSR-oriented
management

Business Domains

Communication withstakeholders

Power Systems
Division

Invested management resources

Foundation supporting corporate value creation

3

Personnel
training

Stable BCM Global business
management development

Responding toclimate change

Building secure andsafe social infrastructure

Developing local
communities

Basic Strategies

Cultivatedknow-how

Capitalinvestment

Value Creation

E Environmental Activities

S

Social Activities

Infrastructure
and Industrial
Systems Division

A company with society scomplete trust

Increasing
shareholder value

Increasing employee
motivation

Reducing
environmental impact

G Organizational GovernanceCommit ment
investment of management resources*‌BCM (Balanced CTQ Management): A methodology for management maintaining a balance between financial and other businessconditions as well as management quality to realize a company’s management vision. CTQ (Critical to Quality) refers to the mostimportant management-related issues.

4Top Message

Through management that takes
into consideration, we will strike a
and CSR initiatives as we promote
A Sure Step Towards Beingan Excellent Company

Promoting Group-wide BCM
Management

CSR Management Evolving with
People, Communities and Society

To be an excellent company maintaining
profitable and sustainable growth, the Group
promoted three strategies under the FY2017
Medium-Term Management Plan: ❶ creating
a business model to steadily achieve strong
earnings and growth, ❷ pursuing innovation
through BCM management, and ❸promoting CSR-oriented management.
As initiatives in line with creating abusiness model to steadily achieve strong
earnings and growth, we continued with
EPC* 1 projects including thermal power
plants in Japan and overseas. We also
pursued initiatives for eco-friendly clean
energy power generation facilities such as
plant and building facilities, hydroelectricrelated facilities, and solar photovoltaic
power generation and biomass power
generation.
In FY2017, we focused on strengthening
our frameworks, including improving andproperly managing the whistleblower
system that enhances the organization’stransparency, and process improvements by
operating the integrated job management
system and enhancing the rules system.
In FY2017, the Group's consolidated net
sales and ordinary income increased year
on year due to the continued strong
performance of our mainstay businesses,
and we continued to grow in a sustainable
manner. Going forward, we will continue tomake steady progress towards our FY2020
goals of net sales of ¥270 billion andordinary income of ¥23 billion, as set forthin the FY2018 Medium-Term Management
Plan.

In pursuing innovation through BCM
management, we promoted Management
Innovation (MI) and continued to make
improvements through Small Group
Activities (SGA) in each business divisionand organization, making these activities
firmly established on a Group-wide basis.
As we look ahead, we will continue topursue balanced management andinnovation by continuing with our BCM
management.
In FY2017, we launched“Project NOVA”
which addresses issues throughout theGroup spanning all organizations,occupations, and ages, and built a system
to spur innovation from the inside.
Currently, we are making progress oninternal reinvigoration projects, including
working style reform, cultivating andentering new markets and businesses,
enhancing safety and the environment, as
well as technology planning. For eachproject, employees from various divisions
and professions are working together toexpand our possibilities.
In addition, with the aim of fostering ashared understanding of our goals, I havebeen sending the CEO e-mail magazine“The Sea Crane Monthly”to employees,
and this has been helping to spur
communication.

As a corporate group that operates in theenergy field and develops social
infrastructure, both of which are
indispensable for people’s lives andeconomic activity, we believe that we havea social responsibility to tackle a variety ofchallenges, and we will continue to focus
on promoting CSR management. We also
aim to continuously improve both social
value and economic value through ESG
viewpoints taking environmental and social
considerations into account. In addition, it
is my belief that our global business andCSR activities contribute to a number of the
17 goals in the Sustainable Development
Goals (SDGs)*2 adopted at the UN Summit
in September 2015.

*1 EPC: Packaged orders that encompass engineering, procurement, and construction*2 Please refer to Page 14 for details.

5both environmental and social issues
balance between our financial results
sustainable growth for the Group.

Going forward, while valuing
communication with all of you, we will
flexibly respond to the market environmentand continue to focus on the important
points of“integrity,”“accountability,”and“transparency” for the company andmanagers alike. I hope that you will lookforward to Toshiba Plant Systems &Services Corporation’s CSR management,
which will evolve together with people,
communities, and society.
July 2018

President and Chief
Executive Officer,
Masataka Hayashi
Representative Director
6

FY2018 Medium-Term Management Plan (FY2018—FY2020)

To be an excellent company continuing profitable and sustainable growth, the Group
created the Medium-Term Management Plan, which was initiated in FY2018. Under
this plan, the Group is advancing specific measures based on the three basic▪Expanding business domains and markets

strategies stipulated in the plan.

Basic Strategies

We will steadily achieve strong earnings and growth under the three basic strategies.

1

Creating a business model to steadily
achieve strong earnings and growth
1 Expanding business domains and markets●
2 Strengthening competitiveness of EPC business
●

2,600
2,268
871 190

885

202

210

220
1,100

230
1,100

33%
25%

24%

1,396

1,440

1,330

FY2017FY2018(Plan)

27%
1,500

FY2019(Plan)Net sales (Billions of yen)
■ Power Systems Division■ Infrastructure and Industrial Systems Division■ Ordinary income (Billions of yen)

1,070

24%

FY2016

7

2,325

2,400

2,700

1,600

Overseas sales ratio◦Cultivate new markets‌Entry into promising emerging markets(Africa, Central Asia, etc.)
Expand clean energy business◦‌Accelerate the reinforcementof global business structure▪‌Strengthening competitiveness of EPC business◦Quality◦Process improvements
Establish a quality management system
Raise operational efficiency through IT‌Eliminate quality non-conformance
Work process optimization
with COPQ* reduction activities◦Strengthening competitiveness through cost reduction◦Technological capabilities
Design standardization‌Promote and expand integrated
Expand application of engineering tools
procurement and global procurement‌Systematic development of supervisory/
chief engineers and project managers‌Shorten work construction time by improving construction
methods, and make testing methods more efficient*COPQ (Cost of Poor Quality): Unnecessary costs due to low quality or defective quality

2

Pursuing innovation through BCM management

We will establish BCM management in all divisions.
◦Balanced management based on four perspectives(Finances, society/customers, processes, learning/growth)◦Set goals at the individual employee level◦Pursue innovation through inter-divisional projects◦Implement BCM management in domestic
and overseas affiliates

3

Company-wide strategy map
Finances

Society/customers

Processes

Learning/growthDivisional strategy map
Finances

Society/customers

Processes

Learning/growth(Plan)

Marketinginnovation
Field/
procurement
innovation

Work in line with the strategies

Designinnovation

Inter-divisional
project

Each organization/individual

Promoting CSR-oriented management

Toshiba Plant Systems & Services
Corporation places top priority on life,
safety and law compliance. At thesame time, we will work to build bondsof trust with society, including ourcustomers and shareholders.

Economic
contribution

Work as a memberof societyLife in harmony withthe environment

FY2020Clarify goals
Top management
Assess level ofachievement

We will strive to achieve“profitable and sustainable growth.”▪‌Accelerating overseas
business development◦EPC for manufacturing plants
Semiconductors, chemicals, food products, etc.
◦Clean energy power generation facilities‌Biomass power generation, solar photovoltaic
power generation plants, etc.
◦Water and sewage treatment‌Measures to handle earthquakes and flooding,
upgrade old facilities◦Building facilities, data centers‌Stable power supply multiplexing/enhancement,
upgrading extra-high voltage substations◦Transportation systems‌Airport lighting, etc., Railway frequency converters /transformers, etc., Road-related ETC, etc.

Report on
progress

Quantitative Targets

3

Promoting CSR-oriented
management◦Nuclear power plants‌Decommissioning measures for Fukushima Daiichi
Nuclear Power Station, address new regulatory
standards, extend operating life of aging plants◦Commercial thermal power plants‌Large and high-efficiency coal-fired thermal,
LNG thermal◦Domestic industrial thermal power plants‌Biomass-mixed fuel, gas-fired combined-cycle,
large upgrade and maintenance work
◦Overseas thermal power plants‌Coal-fired thermal, combined-cycle, large
thermal peripheral equipment◦Hydroelectric Power Generation Facilities
Construction and replacement

Formulate androll out strategies

2

Pursuing innovation throughBCM management

Creating a business model to steadily achieve strong earnings and growth
Infrastructure and Industrial Systems Division

Pursuit of and Further Progress in Process Innovation

1

Power Systems Division

Be an Excellent Company That Continues
Profitable and Sustainable GrowthCompliance
Customers

Local community

Shareholders

Toshiba Plant Systems &Services Group

Global environment

Suppliers

Employees andfamilies

SafetyCorporate
governanceRisk
management

Great place
to work

8

Feature

Clean Energy Power Generation Solutions

Five Cutting-Edge Clean Energy Power Generation Systems
Eco-Friendly, as well as Stable and Economically Viable
As interest in renewable energy increases due tothe Act on Special Measures Concerning Renewable
Energy, which went into effect in 2012, the Grouphas established a track record for clean energy
power generation solutions in various fields. This
includes having received orders for solar photovoltaic
power generation facilities in excess of 780MW on a
cumulative basis, as well as hydroelectric
microturbines, for which our construction trackrecord is among the best in the industry.
In addition, we are actively engaged in marketing
activities in the fields of biomass power generation
facilities as well as gas turbine combined-cycle
power generation facilities which have low
environmental impact, and we are bolstering our
proposals that take the level of environmental impact
into consideration.

committed to answering the trust of customers and promoting

initiatives to consider the environment in a wide range of fields.

Help from the business planning stage

Hydroelectric

Propose the optimal plan with respect microturbines
to the investment plan

Small- andmedium-sized
thermal power
plant systems

Our track record with construction of industrial mega-solar farms in Japan is
top-class in the industry. We offer a comprehensive array of services, fromsystem planning to construction, operation and maintenance, at a variety ofsites, including old factory sites, old saltpan sites, as well as marshes,
mountainous areas and old golf courses, which are generally considered to bedifficult locations for construction. Depending on the planned local
environment, we provide power stations that operate stably by delivering
optimal power station design and construction, including highly-precise
topographical measurements utilizing drones, as well as module layout design.

Liquid biomass power generation

Hydroelectric microturbines

Overview/Features

Overview/Features

Liquid biomass power generation is a diesel engine power
generation facility that uses plant-based liquid fuel. This type of
power generation is receiving attention as a new form of renewableenergy which qualifies for the FIT (Feed-in Tariff) Program.
Compared with other types of power generation like solar
photovoltaic and wind, in addition to being able to generate power
in a stable manner, it is eco-friendly as a“carbon neutral”energy
source that does not impact the concentration of CO 2 in theatmosphere.

For hydroelectric microturbines with small power generation capacities, we have developed packagetype hydroelectric microturbine technology to increase efficiency and scale down equipment.
We created this new equipment by inserting a hydroelectric microturbine (1–25 kW) and a control
panel into a shipping container (height: 2.6m, width: 2.4m, depth: 3.7m) in our plants and shipped
following testing, thereby shortening the construction work time significantly. Power can be generated
simply by installing the container and performing the water-intake work at the actual installation location.
In addition, our report on package-type low-drop microturbine technology was selected as a superior
paper in the POWER-GEN Asia 2017 Best Paper Awards, sponsored by the PennWell Corporation, a US
media company. The paper received second prize in the renewable energy category.

Wooden biomass power generation

9

generation systems that help protect the environment, the Group is

Overview/Features

Provide highly-reliable facilities

Wooden biomass
power generation

power generation systems and low environmental impact power

Solar photovoltaic power generation

Solar photovoltaic
power generation
Liquid biomass
power generationthat are Extremely

Through the provision of products and services such as clean energy

Small- and medium-sized thermal power plant systems

Overview/Features

Overview/Features

Wooden biomass power generation is a new form of energy source that uses forestry
scraps and factory scrap wood as fuel. The keys to a successful power generation
business using this system are a stable fuel supply channel and high-performance boiler
systems that ensure stable operations. We partner with Japan’s prominent timbercompanies and proven boiler manufacturers to offer proposals for one-stop service,from woody biomass procurement to power plant construction. By procuring domestic
timber from within about 50km of the power plant, you can achieve the stable
operation of a 2MW-class power generator. This will also promote the consumption of
locally produced materials and contribute to the revitalization of local forestry.

Our EPC business provides thermal power plants both in Japan and abroad,
ranging from industrial thermal power plant systems that are the main energy
source for industrial plants and those for power companies, independent
power producers (IPP), and power producers and suppliers (PPS).
In the area of low environmental impact gas turbine combined- cycle power
plants and other areas, we offer solutions tailored to our customers’diverse
needs by leveraging our engineering prowess for products made by companies
around the world, our global procurement track record leveraging Groupsynergies, and our expertise having supervised many construction projects.
10Toshiba Plant Systems & Services Group’s Business Domains

Toshiba Plant Systems & Services Group emphasizes the building of aenables people active in all works of society and industry to continually besocial infrastructure that
ensured of security and safety.

Power Systems Division

Infrastructure and Industrial Systems Division

The Power Systems Business provides engineering,
construction, testing, trial operation and such maintenanceservices as inspections and renovations for thermal, hydroelectricand nuclear power plants. We conduct a broad range of businessinvolving thermal and hydroelectric power generation facilities inJapan and overseas. In particular, we have built up a track record
through numerous projects centered in the ASEAN region. In
addition to commercial power plants, we apply our nuclear
power technologies at nuclear power plants and related facilities.

Net Orders¥160.0billion

Net Orders

Net Sales

Net SalesYear on year

10.7% increase Percentage of orders 59.5 %¥144.0billion

Year on year

3.1% increase Percentage of orders 61.9 %Net Orders and Net Sales Amount Trends
1,600

Net Sales

1,295

1,445

(Billions of yen)
1,600
1,440

1,396

1,200
800

Net Orders

1,014

0

Year on year

2.3% increase Percentage of orders 40.5 %

1,200

through the construction of a social infrastructure encompassing power
plants and substation facilities, water and sewage facilities,
transportation facilities, industrial plants and buildings.

The Infrastructure and Industrial Systems Business provides
engineering, construction, test operations, adjustments andfield services, etc. for social infrastructure and general industrial
facilities. We conduct business for public- and private-sector
facilities in a broad range of fields, including electrical facilities
and equipment, dispersed power source facilities, substations,transmission and distribution facilities, and other energy-related
business, as well as production and related facilities.

¥88.5billion
1.5% increase Percentage of orders 38.1 %Net Orders and Net Sales Amount Trends
1,600

includes the building of a foundation that supports society and industry

Net Sales

1,053
898

(Billions of yen)

Net Orders

1,065

1,089

871

885

FY2016FY2017400

FY2015FY2016FY2017

Domestic Network

11

Year on year

800

400

Source: Tokyo Electric Power Company Holdings, Incorporated¥108.9billion

Toshiba Plant Systems & Services Group’s principal sphere of business

0

FY2015

Consolidated Subsidiaries (Domestic)

Consolidated Affiliates (Overseas)

SHIBAURA PLANT CORPORATIONKANSAI TOSHIBA ENGINEERING CORPORATIONTOSHIBA ENGINEERING SERVICE CORPORATIONES TOSHIBA ENGINEERING CORPORATIONSKS CORPORATION

PT. TOSPLANT ENGINEERING INDONESIATPSC (INDIA) PRIVATE LIMITEDTPSC ENGINEERING (MALAYSIA) SDN. BHD.
TOSPLANT ENGINEERING (THAILAND) CO., LTD.
TPSC (THAILAND) CO., LTD.
TPSC US CORPORATIONTPSC (VIETNAM) CO., LTD.
TPSC PHILIPPINES CORPORATION

Offices, Factories

Tsurumi Office (Head Office, Yokohama City), Kawasaki Office (Kawasaki City), Kawasaki Solid Square
Office (Kawasaki City), Isogo Office (Yokohama City), Atsugi Factory (Atsugi City), Atsugi Technology
Research & Development Center (Atsugi City), Atsugi Plant Equipment Control Center (Atsugi City)

Offices

Fuchu Office (Fuchu City), Keihin Office (Yokohama City), Hamakawasaki Office (Kawasaki City)

Branch Offices

Tohoku Branch Office (Sendai City), Chubu Branch Office (Nagoya City), Kansai Branch
Office (Osaka City), Kyushu Branch Office (Fukuoka City)

Branch Offices

Hokkaido Branch Office (Sapporo City), Shin-etsu Branch Office (Niigata City), Hokuriku Branch Office (ToyamaCity), Chugoku Branch Office (Hiroshima City), Power Plant Systems West-Japan Branch Office (Shunan City)

Affiliates Using Equity Method Accounting (Domestic)

Offices

Fukushima Office (Koriyama City), Iwate Office (Kitakami City), Mie Office (Yokkaichi City), Shikoku Office(Takamatsu City), Oita Office (Oita City), Kumamoto Office (Kumamoto City), Okinawa Office (Urasoe City)

Toshiba Power Systems Inspection Services Co., Ltd.

Offices

Kitakanto Office (Saitama City), Higashikanto Office (Chiba City), Shizuoka Office (Mishima City)
12

CSR Management

Aggressively implementing CSR management as
contributes to the building of a foundation that supports
Important CSR Initiatives

a company thatsociety and industry

Corporate governanceIn addition to sound andhigh-quality management, weemphasize good communication

Stakeholders

with all of our stakeholders.

Protect the environment
which supports life,and contribute to society

Human Life,
Environment,
Society

Practice thoroughcomplianceand operate properly
Compliance

To reward our customers trust andWe thoroughly comply with laws and regulations,contribute to the advancement ofsocietal norms, ethics, internal rules and othersociety, we engage in environmental

directives on a global basis, and promote businessactivities in all EPC business processes.

activities amid fair and honest competition.

CSR Promotion Framework
The Company has established a CSR
Governance Committee chaired by thehead of the Administration & Human
Resources Division. This committee
performs cross-organizational oversightof CSR-related staff division operations
and the activities of related committees.
This strengthens coordination among
all CSR activities, and invigorates the
CSR activities of the entire Toshiba
Plant Systems & Services Group.
13

Society s
needs

Contribution to sustainable development, including health and a prosperous society
Consideration of stakeholders expectations
Compliance with relevant laws and regulations, as well as respect for global code of conduct

Communication withstakeholders

In order to continue to be trusted by society,
the Toshiba Plant Systems & Services Group
promotes all business activities with the highest
priority placed on life, safety and law
compliance, and fulfills its social responsibilities
so as to satisfy all stakeholders.

Shareholders and investors

Employees

Organizational
GovernanceP.17〜20

Human Rights

P.21

Labor Practices

P.22〜26

Customers

ConsumerIssues

P.27〜28

Suppliers

Fair Operating
Practices

Local communities

Community Involvement
and Development

P.30〜32

Environment

P.33〜35

Employees

Environmental management

P.29

President
CSR Governance Committee
Secretariat
CSR-Related Staﬀ Division

CSR-Related Committees

Corporate Planning Division, Administration & Human
Resources Division, Finance & Accounting Division,
Industrial Safety & Environment Control Division, etc.

Central Health and Safety Committee,
Environmental Management Oﬃcers Meeting, etc.

Domestic Subsidiaries

Toshiba Plant Systems & Services Corporation

Overseas Aﬃliates

Transforming our world: the 2030 Agenda for Sustainable
Development was adopted at the United Nations Sustainable
Development Summit held at the UN headquarters in New
York from September 25-27, 2015. The Agenda is a plan ofaction for people, the planet, and prosperity, and includes
declarations and goals. These goals were developed tosucceed the Millennium Development Goals (MDGs), and are
officially called the Sustainable Development Goals (SDGs).
They comprise 17 goals and 169 targets for these goals.
14

FY2017 CSR Activities and FY2018 Issues and Goals
Toshiba Plant Systems & Services Corporation places top priority on life, safety and law compliance. At the                   same time, we will work to build bonds of trust with society, including our customers and shareholders.
FY2017 (Plans & Activities)

Related SDGs

Action Policy

Activity Themes

Activity Plans

・Improve the effectiveness of the internal control system for corporate governance・Improve Company-wide compliance awareness by making sure all
Enhancement of the risk
officers and employees understand the Standards of Conduct andmanagement system
continually implementing compliance training and other types of training
・Enhance the Group management system

・Compliance lectures given at each office and branch office by officers, and followed up withpeople who did not attend (compliance meetings and e-mail delivery of lecture materials)
・Implemented training related to information security and personal data protection
・Systematically implemented training related to ethics, compliance, Standards ofConduct, etc. at rank-based training (managers, supervisors, young/new employees)◎ Maintaining ethical standards

We carry out business operations that・E nsure a stable share price, market
meet the expectations of our shareholders Enhancement of
capitalization, and dividend payout ratio
・S trive to disclose appropriate IR
and other investors, and strive to provide corporate value
information in a timely manner
timely and accurate information disclosure.

・A chieved the target of a consolidated dividend payout ratio of
approximately 30%, the basic policy on the profit allocation (FY2017 28.8%)
・Provided timely disclosure as stipulated by the Tokyo Stock Exchange as an enhancement of IR activities, andprovided timely and appropriate information for institutional investors (financial results meetings, IR meetings, etc.)◎

Respect for human ・Strive to have all officers and employees correctly understandrightshuman rights so that it becomes part of the corporate culture

・Held human rights lecture to coincident with human rights week
・Provided education on human rights at rank-based training◎ Respect for human rights

Training and utilization ・Enhance the personnel evaluation feedbackof personnel
system and use it to develop human resources

・Held evaluator training twice (semi-annually) targeted at newly appointed
managers for education for personnel evaluation feedback system◎

Supporting diverse ・F oster the creation of workplace
working styles
environments that address diversity

・Confirmed the personal career plan of employees through interviews
based on the career design system, and created an environment that 〇allows employees to conduct their work and family life in a planned way.

Promoting work- ・Appropriately maintain working hours
life balancethat depend on work performance(1) Reduced total working hours by 50 hours/person/year(2) Average number of annual leave days taken: 16 days・Thoroughly establish basic work operations and actions through the continual
Ensuring healthimprovement of occupational health and safety management systems
and safety
・Promote mental healthcare and strive tocreate healthy and positive workplaces・Accidents caused by“basic work operations and actions”△
occurred, and they have not been thoroughly dealt with・T here is limited use of internal systems for mental healthcare △improvement (interview by industrial physician or clinical psychologist)

Ensuring health and safety

・Achieve zero workplace accidents and zero healthimpairments by thoroughly establishing basic work
operations and actions through the continual improvementof occupational health and safety management systems

Maintaining and enhancing
quality management

・Promote and firmly establish Company-wide
quality activities based on ISO9001:2015, andmaintain and improve quality management

As a company that supports society andindustry, we deliver quality infrastructure andservices that can please many people in society.
We conduct business activities with customers
in a broad range of fields, such as thermal,hydroelectric and nuclear power plants, andpublic and private-sector facilities including
energy-related businesses, production facilities
and related facilities.

コミュニティへの参画及びコミュニティの発展

消費者課題

We have offices in 8 countries
around the world. As a good
corporate citizen, we engage inmeaningful communication withlocal communities, and support awide range of programs tocontribute to the sound andsustainable advancement of society.

Environment
コミュニティへの参画及びコミュニティの発展

消費者課題

公正な事業慣行

環境

労働慣行

15

Toshiba Plant Systems & Services
Corporation has 3,102 employees,
while including group companies(5 domestic, 8 overseas), there
are 4,318 employees.
We view diverse personnel andworking styles positively, andwork on a global basis to create
work environments that lead to
imagination and competitivenessfor our businesses.

Based on the understanding that ourbusiness depends on support fromsuppliers and partner companies, we
make sure to engage in fair, transparent
and free competition and engage inappropriate business transactions. By
doing so, we create relationships in which
all parties can co-exist and prosper.

コミュニティへの参画及びコミュニティの発展

消費者課題

公正な事業慣行

環境

Community
Involvement andDevelopment

Future Issues and Goals

・Appropriately operated whistleblower system “Risk(
Hotline”
and“Board of Statutory Auditors Hotline”)
・Established internal rules related to the handling of whistleblower system ◎・Implemented training related to Toshiba Plant Systems & Services Corporation’sStandards of Conduct, Antimonopoly Act compliance, and prevention of bribery

コミュニティへの参画及びコミュニティの発展

コミュニティへの参画及びコミュニティの発展

消費者課題

公正な事業慣行

Fair Operating
Practices

コミュニティへの参画及びコミュニティの発展

消費者課題

公正な事業慣行

環境

労働慣行

人権

Consumer Issues

Activity Themes

In order to continue to be a
・M ake the internal control system forcorporate group trusted by Enhancement of thecorporate governance function effectivelys o c i e t y , w e e n h a n c e t h e risk management ・Make sure all officers and employees understand the Standardsof Conduct and continually implement risk compliance andcorporate governance system systemother types of training, to bolster compliance awarenessand strive to raise our level ofmanagement transparency and・C ontinually provide education
effectiveness.
related to compliance andMaintaining ethicalinformation security, and rankstandards
based training, etc.

コミュニティへの参画及びコミュニティの発展

消費者課題

公正な事業慣行

環境

労働慣行

人権

組織統治

Labor Practices

Evaluation

◎

消費者課題

公正な事業慣行

環境

労働慣行

人権

組織統治

Human Rights

Activities

Strengthen initiatives for the ・Conduct an appropriate review of all 73 principles
Corporate Governance Code and ・Handle Corporate Governance Code revisions
to appropriately address revisions
and formulate policies, etc.

Enhancement of・R eview the policy for initiatives
initiatives for theaddressing all 73 principles
73 principles

Organizational
Governance

FY2018 (Plan)

To reward our customers’trustand contribute to theadvancement of society, we
engage in environmental
activities in all EPC businessprocesses.

・Reviewed the policy for initiatives addressing all 73 principles

・Continually provide education related tocompliance and information security, andrank-based training, etc.

・Ensure a stable share price, market ・Maintain the target of a consolidated dividend payout ratio of
capitalization, and dividend payout ratio
approximately 30%, the basic policy on the profit allocation
・Strive to disclose appropriate IR ・Continually carry out timely disclosure as stipulated by the Tokyo Stock Exchange as an enhancement
information in a timely mannerof IR activities, and provide timely and appropriate information for institutional investors・‌Strive to have all officers and employees correctly understandhuman rights so that it becomes part of the corporate culture

Training and utilization of ・Enhance the career design system and use it
personnel
to develop human resources
Supporting diverse working
styles・As a part of the Workstyle Reform Project, study
measures to help senior employees work with ahigh level of motivation until the age of 65◎ Promoting work-life balance・Improve work efficiency and shorten total working hours
through putting the Workstyle Reform Project into action.

Maintaining quality
management・M aintain the quality management system
by renewing ISO 9001 certification, andwork to enhance quality

・I S O 9 0 0 1： R e c e i v e d r e g u l a r e x a m i n a t i o n s i n c l u d i n g
examinations of the migration to the 2015 version, andmaintained certification○

Enhancement ofquality・Continuously carry out PDCA cycles in orderto enhance quality, and work to continuously
improve the quality management system・Continuously improved the effectiveness with PDCA cycles by carryingout quality activities based on the quality control policy, along withefforts aimed at organizing and rectifying the quality management system○ Enhancement of quality

Raise customer ・Strive to provide services that contribute to solving social issues
satisfaction level ・Continuously implement improvement activities to address customer needs

・Analysis of customer satisfaction and dissatisfaction data revealed no serious dissatisfaction information
・Implemented improvement activities to address customer needs based on survey results○

Raise customer satisfaction ・Strive to provide services that contribute to solving social issues
・Continuously implement improvement activities to address customer needs
level・Continue to engage in transparent
and fair business transactions
Ensuring transparent
and fair business ・Work to eliminate anti-social forcestransactions
・P r o m o t e p a r t n e r c o m p a n i e s ’enrollment in social insurance

・Worked to implement thorough compliance related to procurement by providing
training to officers and employees about relevant laws and regulations, including
anti-trust laws, subcontractor regulations, construction business act, ordinance for
eliminating organized crime groups, and enrollment in social insurance
If a partner company is not enrolled in social insurance, we do not allow them toenter sites◎

・Continue compliance related to procurement toensure transparent and fair business transactions
Ensuring transparent and ・Confirm that all worker dispatching companies we do businessfair business transactions
with have obtained permission in advance of the September 30
deadline for transitional measures for the unification of
permission systems under the Amended Workers Dispatching Act

CSR promotion in the supply chain ・Promote CSR together with suppliers,(Consideration of human rights,
and build good partnerships withlabor practices, and environment)
suppliers who have reliable quality

・W hen drafting agreements (new, renewal, addition of transaction
category, re-registration) with suppliers, we check their CSR initiatives ○(environment, quality, etc.) and demand that they promote such initiatives

CSR promotion in the supply chain
・Check on the status of our suppliers’CSR(Consideration of human rights,
initiatives
labor practices, and environment)・P rovide continual support for projects that
Supporting programs
restore and preserve domestic cultural properties
that help the next・C ontinually build social infrastructure
generation in Japanand support programs for the next
and overseas
generation in emerging countries

・Kyoto: Supported the conservation of a statue of Abbess Gekkyoken at Shinnyoji
・Thailand: Supported the upgrade of a drinking water supply system
・India: Continued to support the Solar Lantern project・Vietnam: Supported the construction of Vien Son Primary and Secondary School Dormitory◎

・Provide continual support for projects that
restore and preserve domestic cultural properties ・Kyoto: Support the conservation of a statue of Senjuin no Miya at Shinnyoji
・Continually build social infrastructure ・India: Continue to support the Solar Lantern projectand support programs for the next ・Indonesia: Support the construction of Ledang Primary School
generation in emerging countries

Social contribution ・C ontinually engage in social contribution
activities throughactivities at offices and worksites
engagement with ・P rovide cooperation and support for volunteer
local communities
activities carried out individually by employees

・Carried out similar social contribution activities at our offices and worksites
・‌Maintained the system to help employees individually engage in volunteer activities◎

・Continually engage in social contribution ・Carry out similar social contribution activities
activities at offices and worksites
at our offices and worksites
・Provide cooperation and support for volunteer ・Maintain the system to help employees
individually engage in volunteer activities
activities carried out individually by employees

Use of environmental ・A djust the environmental management systems inmanagement systems
conjunction with amendments to JIS Q14001 standard･Completed re-certification at 2015 version standards◎

C o n s i d e r i n g i d e a l o f ・Identify environmental measures in all business processes,
environmental activities
share measures and incorporate them into activities

Reducing the・Continuously strive to reduce ourenvironmental
environmental impact in all EPC
impact of businessprocesses
activities･Reduction of energy-derived CO2
Maintained current levels of energy conservation activities: Electric power: 3,840,000 kWh
Changed lighting to LED and changed to high-efficiency air conditioning units when refurbishing business sites
Managed the fuel efficiency of vehicles used in construction work, etc.
･Efficient use of resources
Reduced industrial waste associated with construction and maintained high recycling rate 99%･Conservation of biodiversity
Promoted the elimination of paper for main meetings, including company-wide meetings,
etc. (Reduction of approximately 340,000 sheets of paper – A4 size equivalent)○･Reduction of energy-derived CO2
Maintain level of energy conservation activities
・Efficient use of resources (reduction of waste emissions)
Reducing the environmental
Study and implement initiatives to reduce packaging materials
Maintain high recycling rate
impact of business activities
・Conservation of biodiversity
Promote green procurement for office supplies
Promote paperless meetings in each organization

Developing and providing ・Develop eco-friendly products andecofriendly construction
provide eco-friendly services

・Continued to provide renewable energy products such as solar
photovoltaic power generation and hydroelectric microturbins○

Promoting provision of eco-friendly ・Promote provision of environmentally conscious products and new energy equipment
products and construction
・Reduce man-hours and materials in construction by developing construction methods and technologies《Evaluation Standards》 ◎ Achieved all targets○ Targets mostly achieved・Continuously carry out PDCA cycles in orderto enhance quality, and work to continuously
improve the quality management system△ More remaining issues than achievements

× No progress

16Organizational Governance

As a company that handles social infrastructure, in order to keep the trust of
stakeholders such as customers and shareholders, we enhance our corporate governancesystem and strive to improve management transparency and effectiveness. We strive tobuild strong relationships of trust with shareholders, investors, customers and otherstakeholders, and to increase corporate value.

Corporate GovernanceCorporate Governance Policy
Starting with the “Toshiba Plant Systems & Services
Corporation’s Standards of Conduct,”which is the Company’s
original code of conduct, we have established a compliancesystem through the establishment of various rules. The basic
objective of our corporate governance is to ensure managementsoundness and transparency, to increase management efficiency,
and to maximize corporate value.
We have striven to further strengthen and enhance ourcorporate governance, and have positioned the building of good
relationships of trust with stakeholders such as shareholders,investors and customers as an important management policy.
In addition, based on the purpose and spirit of the“Corporate
Governance Code”established by the Tokyo Stock Exchange,
the Company aims to realize sustainable growth and medium- tolong-term corporate value improvement, and in order to clarify
the basic philosophy and initiatives of the Company with respect
to corporate governance, we have established“Our Efforts
Related to the Corporate Governance Code” as policies
corresponding to all 73 principles, the full text of which isdisclosed on the Company’s website.

Corporate Governance System
Statutory Auditors exchange opinions and share information with one another. In
addition, reports about auditing matters, etc. are received from each Statutory
Auditor, and the matters are deliberated and decided upon.
As an independent organization, in accordance with the auditing standards for
Statutory Auditors, audit policy, annual audit plan, etc. decided by the Board of
Statutory Auditors, each Statutory Auditor strives to deepen his/her understandingof business and proactively collect information, and through the investigation ofmanagement conditions and financial conditions, fairly and effectively audit theexecution of business by Directors. In addition, the Statutory Auditors work closelywith the Auditing Division and other divisions, request advice from attorneys andother outside experts as necessary, and otherwise strive to bolster the function of
the Board of Statutory Auditors.
In addition, we have established a framework so that Statutory Auditors
accurately and in a timely manner understand the important decision-making
process and the status of business execution, and are able to offer advice andexpress their opinions as necessary. This includes providing Statutory Auditors withthe opportunity to attend Board of Directors meetings, Management Meetings, andother important meetings, in addition to regularly providing opportunities for
Statutory Auditors to meet and discuss matters with the President and Chief
Executive Officer (Representative Director).

The Company is a company with Board of Statutory Auditors. The Company has
11 Directors (including two Outside Directors) and four Statutory Auditors(including two Outside Statutory Auditors). Through their efforts, the Company isworking to strengthen and enhance its corporate governance system, and is aiming
to boost management efficiency and ensure transparency.
1. Board of Directors
The Board of Directors generally holds meetings once a month in order toensure that Directors are efficiently executing their duties.
As the highest management decision-making body, the Board of Directors
discusses and makes decisions on matters stipulated in laws and regulations andthe Articles of Incorporation, as well as other important management matters. In
addition, the Board of Directors receives reports in a timely and appropriatemanner from each Director and Executive Officer regarding the status ofoperations, and effectively and efficiently monitors and supervises the suitability
and rationality of operations.
Moreover, the Executive Officer System has been introduced to quickly respondto rapid changes in the business environment as well as competition with othercompanies by separating the business execution function from the management
decision-making and supervising functions.
2. Management Meeting
The Management Meeting is generally held once a week in order to ensure
quick decision-making and efficient operations.
At the Management Meeting, management policies and important businessexecution related to management strategies, etc., are discussed and decisions aremade.

Organizational Governance

Aiming to improve management transparency andeffectiveness, and to increase corporate value

5. Auditing Division
The Auditing Division was established as an organization responsible for theinternal audit function. Based on the plan for the fiscal year, the Auditing Division
audits the business activities and accounting of the Company’s various divisions
and of group companies.
The Auditing Division studies and evaluates the effectiveness of compliance, risk
management and governance processes of each division, and the status ofmanagement activities impartially and from an independent position, from thestandpoint of legality, rationality, and efficiency. The Auditing Division possesses
the audit function to provide opinions, advice, and recommendations aimed atmaking improvements, and works closely with the Statutory Auditors and otherswith respect to the overall audit process and shares information related to audits.

3. Nomination and Compensation Committee
The Nomination and Compensation Committee, comprised of two Outside
Directors and four Directors appointed by the resolution of the Board of Directors,
has been established as a voluntary advisory body to the Board of Directors. This
Committee ensures a framework whereby Outside Directors are able to beappropriately involved in, and provide advice with respect to matters such as thenomination of officers, as well as Directors’compensation.

6. Accounting Auditor
PricewaterhouseCoopers Aarata LLC, the Accounting Auditor, performs statutory
accounting audits and works closely with the Board of Statutory Auditors to ensure
the legality and appropriateness of accounting practices.

4. Board of Statutory Auditors
In accordance with the“Board of Statutory Auditors’Rules,”the Board of
Statutory Auditors generally holds meetings once a month. At these meetings, theCorporate Governance Structure

General Meeting of Shareholders
Nomination and Compensation Committee

AdviceSubmitreportAppointment / Dismissal

Board of Directors

Appointment / Dismissal / Supervision
ReportAppointment /Dismissal /Supervision

Appointment /Audit
Dismissal
ReportReportAudit

Board of Statutory Auditors

Representative Director

Appointment / Dismissal

Accounting Auditor
Audit

Cooperation

Instruction

Instruction / SupervisionCorporate attorneys, etc.
Advice /Guidance

ReportReportAuditing DivisionInternal Audit

Management Meeting
Executive Oﬃcers

Business Divisions, Branch Oﬃces, Oﬃces, Administration Groups

ReportExcerpt from the Corporate Governance report (June 21, 2018)
http://www.toshiba-tpsc.co.jp/pdf/ir/or/pdf/corporate_governance_20180621.pdf

17Group Companies

Instruction / Supervision18

Organizational GovernanceWe thoroughly comply with all laws and regulations, social
norms, ethics, and internal rules, and strive to improve management
efficiency and ensure management transparency.
In addition, we ensure strong compliance with our Commitment,
our Management Vision, and the“Toshiba Plant Systems & Services
Corporation’s Standards of Conduct,”which is the Company’s
original code of conduct. As a corporate citizen of the Earth thatvalues the environment, human rights, and harmony with local
communities, we aim to realize sound and high-quality management.
Furthermore, each year we determine priority measures in ourrisk and compliance management measures while taking into
consideration current changes in the business environment. By
pursuing these measures that are common to the whole Company,
we strive to enhance compliance.

Together with Shareholders and Investors

Risk Management and Compliance Structure
Auditing Division

Audit report

ReportInstruction /AdviceCRO
Administration &Human Resources Division

Statutory Auditors

Corporate attorneys

Instruction

Whistleblowing
Whistleblowing

Policy on Disclosure of IR Information

President

Report /Submit report

ReportWhistleblowing

Risk Compliance
Committee

Risk Compliance-related
Committee

Employees

Suppliers employees

Divisions

Guidance / Support
Report / Deliberation

Associates

Whistleblower System
Risk Hotline
Whistleblowing
Response

Whistleblowing Contact

Attorney’s Office

Response

Investigate /CheckCoordination

Division Responsible for Risk Management
and Compliance Matters
Coordination

Board of Statutory Auditors Hotline

Whistleblowing

Whistleblowing Contact *Independent from executive side

Board of Statutory
Auditors

Investigate /Check

Message from Outside Director

Valuing viewing things from the frontlines and not simply as numbers on paper

Certified Public Accountant, Certified Public Tax Accountant

Yoshikazu Yokoyama[Biography]
July 1993 Registered as Certified Public Accountant (Present

position)

September 1993 Registered as Certified Public Tax
Accountant (Present position)
June 2016 Outside Director of the Company (Present position)

19

I became an Outside Director in 2016, but in the early 1990s when I worked at then Showa Ota& Co. (now Ernst & Young ShinNihon LLC), I used to come to Toshiba Engineering & Construction
Co. Ltd., the Company’s predecessor, as an accounting auditor. When I returned to the Company
as a member of the Board of Directors, I felt a sense of nostalgia, as if I had returned to my oldhome.
I believe that my role in the Company is to provide management-related advice from an objective
viewpoint while utilizing my expertise as a certified public accountant. In addition, I place a lot ofemphasis on viewing things from the frontlines and not just viewing things in terms of operating
performance. I have always thought that our strengths were our strong technological capabilities
that we have cultivated over the years and our frontline capabilities, where each and every
employee works enthusiastically. By visiting worksites and learning the situation on the frontlines, I
started to realize that if you look at things from the view of people in the field, you can gain
different strategic insights. I think this allows me to provide better management-related advice.
Under the FY2018 Medium-Term Management Plan, we are proactively working to expand ourbusiness domains and markets, as well as bolster our quality and technological capabilities with aview to the future, and I believe that we can expect great things going forward. In addition, I get the
feeling that we are progressing steadily towards our goals. Going forward, we will demonstrate ourstrengths in terms of both our technological and frontline capabilities, and I expect us to be an
excellent company that continues to achieve sustainable growth.

Relevant Divisions

Employees

Whistleblowing Contact
Whistleblowing

Response

Outside Director

timely disclosure in accordance with laws andregulations etc., in addition to voluntarily
disclosing information (including non-financial
information) determined to be important forshareholders and other stakeholders.

Whistleblowing

Whistleblower System
As part of our proactive effort to prevent
compliance violations and to limit risk, we haveestablished a“Risk Hotline”as well as a“Board of
Statutory Auditors Hotline.”These measures allow
the Company to directly obtain information onrisk internally.
Furthermore, in either system, we make surethat people who provide information on risks are
not subject to unfair treatment on the grounds
that they provided such information.

Information disclosure is an importantmanagement priority, and we recognize it isessential to appropriately disclose information inorder to obtain our stakeholders’understanding.
To put this in practice, we quickly carry out

Organizational Governance

Policy and Structure of Risk Management and ComplianceDialogue with Shareholders and Investors
We recognize that proactively engaging in dialogue
with our shareholders to listen to their opinions andrequests, and reflecting such feedback into
management, are important responsibilities in order toachieve sustainable growth and to increase corporate
value over the medium to long term. To this end, we
have established an IR framework centered on the
director responsible for IR. We hold financial resultsmeetings for shareholders and investors generally twicea year, as well as proactively hold IR meetings andother events based on requests, and strive to disclose
information in a timely and appropriate manner to areasonable extent, while keeping in mind principles
such as shareholder equality and insider information
handling etc. As necessary, the director responsible for
IR provides feedback about the outline of suchinformation and shares information with other directors
and relevant divisions through meetings, reports, andother means.

Website IR information

Shareholder Newsletters

Basic Policy on the Profit Allocation
The Company works to return profits with thetarget of a consolidated dividend payout ratio of
approximately 30%, while considering the optimalbalance between increasing corporate value
through medium- to long-term growth and thereturn of profits. Also, the Company effectively
uses internal reserves to bolster its financial
position, to prepare for future businessdevelopment, and to flexibly respond to changes
in the business environment as well as otherdevelopments. Taking changes in the businessenvironment, the Company’s financial condition,and other factors into consideration, theCompany considers carrying out share buybacks
as a way of raising capital efficiency and returning
profits to shareholders.

Dividend Amount Trends
50Interim dividend

40

37.5

30

12.5

(Yen/share)

Fiscal year-end dividend

42

40(Plan)

20(Plan)

19

20(Plan)FY2016FY2017FY2018(Plan)

38
19

21

20
10
0

7.5

25※

7.5
FY2014FY2015

21

Breakdown of FY2015 interim dividend: Ordinary dividend =¥12.5, Special dividend = ¥12.5

20

Human Rights

Labor Practices

In accordance with basic human rights protected by the Constitution, related laws andsregulations, as well as our Commitment, the Toshiba Plant Systems & Services Corporation’Standards of Conduct recognizes the diverse values of individuals based on a respect forpeople, and respects the character, individuality, and privacy of people. The Standards ofConduct also prohibit discriminatory remarks and actions against race, religion, gender,
nationality, physical or mental disability, age, or sexual orientation, as well as physicalviolence, sexual harassment, power harassment, and other acts that violate human rights.

Our personnel are our greatest management resource, and are the source of ourcompetitiveness as a company. We create an environment where employees can work withpeace of mind and promote safety activities with the aim of having zero work accidents.
We also keep our employees energized by making the most of each employee’s abilities
and unique strengths. Both of these initiatives lead to continual growth for the Company.

Human Rights Enlightenment(Education)

Employment of People with
Disabilities

Basic Health and Safety Policy

In order to ensure that employees have acorrect understanding of human rights, and are
fully aware of them, we continuously provide
education on human rights, including during new
employee training, rank-based training whenpeople are promoted, and other occasions.

Based on the philosophy of normalization, theCompany actively employs people with disabilities,
and supports them to thrive in the workplace. Its
ratio of employees with disabilities was 2.29% asof March 31, 2018.

2.17%

2.28%

2.06%

Human Rights Lecture
Each December, as one of the events held
during human rights week, an outside lecturer isinvited to give a“human rights lecture”in order toraise employee awareness about human rights
issues. Topics of past lectures have included
approaches to creating comfortable workplaces
and measures to prevent harassment.

2.29%

2.19%

FY2013 is for the Company on a stand-alone basis
Group-wide calculation basis as an exception since FY2014

2013

2014

2015

2016

2017(FY)

Establishment of Consulting
Service on Human Rights
The Company established a consultation service
on human rights such as sexual harassment andpower harassment, and is promoting the creation ofan environment where each employee can workwith peace of mind. Both the Administration &Human Resources Division and the labor union haveconsultation desks, making it easy for employees toreceive support. Issues brought to the Company’s
attention are addressed quickly, and the privacy ofpeople who seek consultation is protected.

Health and Safety Initiatives
Through our business activities, we reward the trust of our customers
and contribute to the advancement of society. In addition, based on our
respect for people,“Valuing People,”we devote maximum effort to ensure

the health and safety of all people involved in our business activities andpromote health and safety management programs. This includes our
employees, as well as the people of our affiliates and partner companies.

1. ‌We have integrated our occupational health and safety management systems into our operations and construction work management
frameworks, and all employees follow it.
2. ‌We strive to cooperate and partner with local communities based on the cooperation of all people involved in our business activities, and aim
to create comfortable workplace environments and raise our level of health and safety based on safety activities through excellent
communication.
3. ‌In addition to increasing the essential safety of our facilities and the equipment we use, we aim for a thorough safety management framework inaccordance with our health and safety plan which details the reduction of the potential risks for workplace accidents and harmful factors. With
this, we ensure safe conditions and safe activities, and we have set a target of zero accidents/disasters as our goal for occupational safety.
4. ‌We eliminate factors that undermine health, proactively create bright and comfortable workplaces, and proactively implement programs that
support health and provide health guidance etc., thereby promoting both physical and emotional health.
5. ‌Promoting uniform health and safety activities across the entire Group, we inform all employees, affiliates and partner companies about Basic
Health and Safety Policy as well as health- and safety-related laws and regulations, rules, and standards by holding education and drills, andother such activities to increase awareness.

Example of Health and Safety Initiative❶ Safety sensory education❷ Safety Environment Competition“Safety sensory education”is aimed at reminding employees of theimportance of the basic actions and work operations for safety byproviding a virtual experience of dangers under conditions
approximating a real worksite environment while allowing employees tofeel how scary an accident or disaster is. The main curriculum includes
experiencing a variety of situations related to potential dangers during
regular work, including sling wire severing, pinched fingers, hanging froma belt-type safety harness, and electric shock. Since the first being heldin June 2007,“Safety sensory education”has already been held morethan 150 times at worksites both in Japan and overseas.

In order to raise awareness of the health,safety, and the environment, and ensure
proactive promotion of the activities, the Group
as a whole, including partner companies, holds
a“Safety Environment Competition”each July.
In FY2017, the event was held on July 18, andbegan with reports on examples of safety andenvironmental management, and included
presentation of the“Safety achievement award”
and the“Environmental achievement award.”

Experiencing pinched fingers

21

Labor Practices

Creating rewarding workplaces thatemphasize employee health and safety
Human Rights

Recognizing diverse values andrespecting individuals

Experiencing electric shock

Safety Environment Competition in FY2017

22

Labor Practices
Health and Safety Goals

Together with Employees

Safety Goal: Zero workplace accidents

Health Goal: Zero health impairments(1) Clarification of and compliance with health and safety rules(1) Promotion of mental healthcare(2) Firm establishment of basic work operations and actions(2) Prevention of health impairments caused by overwork(3) ‌Continual improvement of occupational
health and safety management systems(3) Improvement in health concern detection rate in regular health checks(4) Maintenance‌and improvement of the workplaceenvironment as well as disease prevention(4) Enhancement of health and safety education
Basic work operations and actions

Risk assessmentagemCompliance check

TBM・KYemphasizes being on-site
to see what is actually happening.

en
ts
yst
em
s

Measures to prevent reoccurrence of accidentsnPoint out issues → Conﬁrm corrections

Instructions and manualsti oBasic work
operations andactions

Worksite inspection/patrol

Incorporation

Thorough implementation

d
h an
Healt

e
saf

ca

Improvement

ty

ed

u

KY (abbreviation of the Japanese phrase kiken yochi): Smallgroup activity aimed at preventing accidents by having
individual work groups grasp the current work conditions topredict the inherent potential risks, establish
countermeasures and action goals prior to performing work.

Stress checks, awareness and response

Self-care

Regular checks

Enhance knowledge of care
Rank-based training, lecture

Promotion ofmental healthcare

Improvement/enhancement

Line careHigh stressIndustrial physician/health staﬀ
Consultations/advice/referral to outside institutions

Industrial physician instructions

Understand and improve the workplace environment

VOICE

My participation in“Safety sensory education” Voice of new employees

and utilization
Diversity-related

Promotinginitiatives

work-life balance
Creating healthyand safe workplaces

We have put in place a“Career Design System”which aims to train andutilize personnel from a medium- to long-term perspective. Superiors and theemployees that report to them cultivate communication through interviews
and the Company’s operating performance is aided by superiors helping
employees advance their careers while checking on the direction of theiremployees’development and utilization.
▌‌“Feedback
meetings”that build relationships of trust
between superiors and employees that report to them
The Company conducts personnel evaluations that treat employees fairly
and impartially. The evaluations are based on performance over a set period
in accordance with assessment criteria. As a part of feedback throughinterviews between superiors and employees reporting to them, assessmentsof performance, abilities, and attitude are explained. In addition to increasingtransparency and understanding, this leads to employees having motivation
to use in their future work and to personnel training.
Personnel Utilization and Training System▌Training system
We develop employees by effectively combining OJT, OFF-JT,and self-development systematically.
OJT
The aim of OJT is to systematically increase one’s abilities byacquiring the necessary knowledge, technical skills and businessskills through work.
OFF-JT
The aim of OFF-JT is to provide systematic and specialized
training away from the workplace, including rank-based training,
global training, specialized skill training, and training to acquire
public certification, aimed at giving employees knowledge, technicalskills and business skills commonly required to carry out business.
Self-development
We offer opportunities for personnel to improve their
qualifications and abilities. Such opportunities include voluntarylong-distance education and“family training”which promotes
mutual self-improvement among workplace units.

Career design
Training System
Career plan

OFF-JT

Feedback
Personnel treatment
Evaluation system
Personnel allocation
Pay and conditions system

Rank-based training

Innovation training

Global training

Specialized skill training

Health, safety and environmental training Training to acquire public certification Other

Self-development

New employees of the Company for FY2018

Interview

Employees desiring transfer etc.

OJT◦I felt that properly using protective equipment is a very importantfactor in order to protect our lives. I realized that it is importantto recognize that dangers are always nearby at the worksite, andthat it is critical that not only individuals, but the entire team,work to increase safety awareness.
◦In addition to learning about worksite risks, I learned what safetymeasures should be taken to ensure that no risks materialize, andI also learned that safety measures must be thorough. I want to
aim for zero accidents by adhering to the fundamentals of safety
when actually working on site, as well as by having others
thoroughly comply with these fundamentals of safety.
◦I learned that it is important to have a uniform awareness ofsafety, because each person has a different level of sensitivity todanger. Going forward, I will further raise my level of knowledge
and skill with respect to safety, and always make sure not tocause any accidents.
23

Personnel training

Personnel training and utilization

Mental healthcare promotion
We aim for managers and employees tohave “zero health impairments” byenergizing workplace communication,
promoting mental healthcare, and working
to create comfortable and low-stress work
environments.

We view diverse personnel and working styles
positively, and work on a global basis to create
work environments that lead to imagination andcompetitiveness for our businesses. Our
personnel are our greatest management resource,
and are the source of our competitiveness as acompany. We believe that getting the most out of
the abilities and unique strengths of each of ourvaluable employees and continually energizingthem will lead to continual growth for thecompany.
Therefore, we set the four areas of emphasis of“Personnel training and utilization,”“Diversityrelated initiatives,”“Promoting work-life balance,”
and“Creating healthy and safe workplaces.”

Labor Practices

Reﬂect previous examples of accidents

an*TBM:	Tool Box Meeting. A safety meeting held atworksites prior to performing work. It is called
this because workers gather near the tool box
and have a discussion led by the supervisor.

r health and safety
Rules foM

All members of the Group will return tothe starting point of safety, and aim for“zeroworkplace accidents”by firmly establishing
the Basic Work Operations and Actions.
To this end, we will incorporate risk
assessment results into work instructions
and manuals, and use them in TBM/KY
activities* attended by all employees,
thereby continuously improving occupational
health and safety management systems.

Four Areas of Emphasis

24Labor Practices
Diversity-related initiatives▌Re-hiring system
To support business plans, it is essential to pass skills downfrom one generation to the next and to allow experienced
employees to contribute. We have established a framework forour employees to continue to work enthusiastically on the front
lines of business after reaching the mandatory retirement age of60, and the Toshiba Plant Systems & Services Group Re-hiring
System which incorporates incentive structures for employees
to be active on the front lines at worksites. Employees wishing
to do so may renew their employment up until the age of 65.

hired and improve the retention rate (the average number ofcontinuous years of employment by female employees is 18.5
years as of March 31, 2018) through its initiatives to support abalance between work, childcare and family care.
Average number of continuous years of employment for men and women
25
20

Men

(Units: Years)
Women

21.0

21.3

21.5

21.7

21.8

17.0

17.4

17.9

18.3

18.5

15
10

2014

2015

2016

2017

2018

▌Promoting employment for foreigners
The Company actively promotes the hiring of foreign
nationals, primarily foreign students. In addition, we carry out
personnel exchanges with overseas subsidiaries, and as a global
company we are striving to create workplaces where personnelof diverse nationalities are active and able to thrive.

Promoting work-life balance▌‌Preventing lifestyle-related diseases (healthguidance, specified health guidance)
Based on the results of regular health checks, we provide health guidance andspecified health guidance for employees aged 40 and above. Employees keep
track of the values that have been identified as problematic, and set improvementtargets for lifestyle habits and write up detailed action plans. A nurse provides
ongoing support to help employees achieve their targets in 6 months.
▌Mental healthcare
Our support for employees includes conducting legally-required stress checks
once a year to encourage awareness of stress among employees. In addition, weoffer self-care training through rank-based training, and provide opportunities for
employees to learn ways to handle stress.
In addition, we promote the creation of healthy workplaces by not only
conducting line care training through managerial training and other initiatives andproviding an opportunity for managers to become aware of employee’s needs
and develop their listening skills, but also by fostering lively workplacecommunication among our people by encouraging them to call out and greet one
another.
First Level
Prevention and health promotion

We help employees balance their work and personal lives in order to continue profitable andsustainable growth for the Company and to help employees live fulfilling lives.
▌Supporting employees to balance work, childcare and family care
To support employees to raise their children, we have put
in place systems that go beyond what is legally required. In
addition, we have a leaflet containing information on the
Company’s various benefits and programs as well as publicbenefits related to giving birth and raising children. The
contents are posted on the Company intranet for
employees to view anytime. We acquired the nextgeneration authorization mark“Kurumin”* in April 2007.

In addition, in order to support the balance between
work and family care, we have created a flexible work
system so that employees can respond to various familycare situations while working. Also, on the intranet we haveposted a leaflet providing information on the Company’s
family care-related systems as well as examples of balancing
family care and work.
*‌Kurumin: A‌ symbol indicating that a company has been recognized by the Ministerof Health, Labour and Welfare as a company that supports childcare

Labor Practices▌Promoting women in the workplace
The Company’s ratio of female employees is 6.6% (as ofMarch 31, 2018). Although this ratio is low, female employees
are working in a wide range of fields, including technical, sales,
and administrative positions. In addition, the Company iscreating mechanisms that allow female employees to thrive inthe workplace, including enhancing training programs in order
to increase the number of female employees in leadership roles.
The Company is also working to increase the number of women

Creating healthy and safe workplaces

Second Level
Early detection, quick response

Third Level
Convalescence support

Training for new hires and again after first year
Year 5 training
Self-care

Rank-based training
Stress checks
Employee satisfaction awareness survey
Managerial training

Line careComprehensive workplace inspections by managers
Interviews with clinical psychologists

Measures to support employees to balance work with childcare and family careChildcare leave

Until the 30th of April following the child’s second birthday (if statutory requirements are met)

Shortened working hours to provide childcare Covers children through until elementary school graduation
Family care leave (for the sick and/or injured) 5 days a year per eligible person
Paternity leave

5 days (within 6 weeks of spouse giving birth)

Raising next-generation support leave 10 continuous days (following birth by spouse, until child turns one)
Family care leave (for the One year per applicable family member
elderly and/or disabled) (up to a year of total leave can be split into smaller periods without restriction)
Shortened working hours to provide family No limit per applicable family member
care (for the elderly and/or disabled)(until reason for family care no longer exists)

Ratio of women
returning to work
after giving birth

Since FY2013

VOICE

A workplace where diverse personnel can be active and thrive Voice of non-Japanese national

100％

Family care leave (for the elderly and/or disabled) 5 days a year per applicable family member

Initiatives aimed at shortening total hours worked
Main leave programs

25

Free entry leave

Employees can register and take up to 12 days of annual leave in advance

Accumulated leave

Employees can accumulate and take up to a maximum of 20 days of annual leave,that would otherwise expire, for the purpose of self-development, volunteering,treatment of non-occupational injuries and diseases, family care, or childcare

Refresh vacation

Employees can take 5 consecutive days of vacation after 10 consecutive years ofservice, and then 5 consecutive days of vacation after each 5 consecutive yearsof service thereafter (10 days after reaching 25 years of consecutive service)

Retirement trip vacation

Employees can take 5-day travel vacation upon reaching
mandatory retirement at age 60

Initiatives through the Hatsuratsu Work-life Level

The outcome of initiatives to reduce the total
number of hours worked is used as an indicator
called the“Hatsuratsu Work-life Level.”Divisions
that have done well receive recognition, and are
given money to use for recreational activities
that involve the business unit.

Industrial Systems Division
Facilities & Systems
Engineering Department
Facilities & Industrial Plant
Engineering GroupI am from Peru and am one-quarter Japanese. I came to Japan with my family in 1999, and was educated inJapan and went to a Japanese university. After I came to Japan I wasn’t thinking about my future career inparticular, but my Japanese grandfather’s work was related to electricity, and after seeing him work I decided topursue a career related to electricity. At university, I majored in electrical and electronic engineering, and thenjoined the Company in 2012.
Currently, in addition to designing layout drawings and wiring tables related to steel equipment-related
electrical equipment, as well as selecting materials, I manage processes, quality, and safety for construction workat worksites. Due to differences in culture and language, I still sometimes am unable to smoothly answer
questions from customers and partnering companies, and have to revert to using gestures, and I also stillsometimes struggle with difficult aspects of the Japanese language, but I feel that I am developing as I experience
one type of work after another, and I find my work to be very rewarding.
In the future, in addition to of course doing electrical work, I also want to experience a wide range of work withother machinery and other operations, and I want to grow to be a fine engineer and contribute to the Company.
26

Consumer Issues

Construction → Delivery

Check
Monitoring and measurement (customer satisfaction, data from each process)Internal audit, ISO 9001 certification renewal (external audit)
Analyze dataAct
Evaluation and implementation of preventive and corrective measures

Management Framework of Personal Data Protection Management System
President

Plan

Measures to respond to emergencies(establish system)

Devise countermeasures<Basic Elements>

Provide refresher training

9001 certification from

Lloyd’s Register Quality

Management Review Meeting

Quality Oversight Division

Implement countermeasures

Handle complaints and consultations

Disclosure/penalty

・‌Periodic inspections of
implementation status
・Recognition of residual risk

・Clarify response contact
・Sincere response・‌Compliance withdisclosure obligations
・Fair handling

Check

Divisions

Conduct internal audit

Assurance Limited, theinternational standard

for quality management
systems.

27

Groups

Quality management groups*CPL: Abbreviation combining CL (contractual liability) and PL (product liability)
CPL Committee: ‌Committee formed to handle quality-related incidents whena CPL incident occurs*2 CQO: Chief Quality Officer

Renew PrivacyMark certification (external audit)
Act

Assessment and improvements to matters that need correcting

RecordDocumentation
Establish framework
Legal compliance

Do

Information Security Committee

Chief Privacy Officer (CPO)*2
Deputy Chief Privacy Officer

Identify personal data (create registry)Management Framework of Quality Management System

Chief Risk-compliance management Officer (CRO)*1

Personal data protection audit officer

Privacy Policy

Check management vulnerability

CPL Committee*

Affiliates

Conceptual Diagram of Personal Data Protection Management System

・
・
・
・

We have obtained ISO

Heads of the sections

Protection Management System in order to thoroughly protect
the personal data we handle. This system is implemented andused in our daily operations, and improvements are continually
made to the system based on improvements and reviews
made by the internal and external audits.

CQO*2

ISO 9001 certification markImplementation managers

We have obtained the PrivacyMark certification fromJIPDEC. This signifies that the Company is in compliance withall laws and regulations, as well as other standards related tothe protection of personal data, in accordance with theStandards of Conduct. We have established a Personal Data

Risk assessment (create registry)

President⑥①

Design-Development-Purchasing-Manufacturing

Management executives

Consumer Issues

Contracts (contract specifications)

Practices Committee

Matters related to the prevention of insider trading<Clarify requirements>

・Product‌
monitoring andmeasurement
・Management‌
of non-compliant
products
・Corrective measures (products)<Operation
management of
resources>

Information Security Liaison Council（Staff, Business Divisions, Branch Offices）

Matters related to the handling of personal data
Matters related to the handling of technological information
Matters related to the handling of intellectual property right5. ‌We aim for essential improvement by investigating the root
causes of process failures.

Do

Information Security Committee

Staff in related divisions

Protection of Personal DataManagement Review (Continual improvement of Quality)

4. We‌ ensure quality through effecting the participation of the entire
group and all employees.

Formulate plans to achieve quality targets

Implementation manager

Technical Information

3. ‌We establish and maintain a quality management system
which aims to deliver services, products and systems that fulfill
customer needs, and continually improve their effectiveness.

Inform entire company of important quality-related items

Management Review (Continual improvement of Quality)

2. We‌ comply with relevant laws and regulations and contracts, andrespect the rights of customers and third parties.

Quality-related
Meeting・ Worksite environment
・ Infrastructure
・ Human resources

1. We‌ engage in quality assurance from the customers’point of view.

Quality Control Policy

CustomerActing in accordance with Toshiba Plant Systems & Services
Corporation’s Standards of Conduct, and sticking to our
Commitment stipulating that each employee is committed to serving
society through their work in the field of social infrastructure, we
aim to contribute to society by making quality our highest priority,
ensuring product safety and reliability, securing a proper worksite
environment, complying with legal regulations, and by providing
services, products, and systems that fulfill customer needs.

Technical Information

Plan

Quality Control Policy

Information on Management

Conceptual Diagram of Quality Management System

Personal Data

We continually make improvements to quality
always from the perspective of our customers by using
a stringent quality management system based on ISO
9001 requirements, and by carrying out PDCA (PlanDo-Check-Act) cycles, the basic principle of ISO 9001.

Information Other
than Personal Data
Requiring Stringent
Management

We have built a quality management system with a total engineering
framework spanning from plant planning and proposals to design,
procurement, construction, testing, trial operations, maintenance andservices, and offer services that match customers’needs.
Going forward, we will carry out quality activities based on our“Quality Control Policy,”implement strict quality management, makecontinual improvements, and strive to improve quality.

Insider Information

Quality Management System (QMS) Overview and Management Framework

Information on Management

Quality Management

Management officer
Deputy Management officer

Matters related to the handling of electronic information
Matters related to the business contracts
Matters related to issues other than -data, and strive to raise the level of customer satisfaction by continually improving these measures.

Management Framework of Information Security

Company-wide Information Security
Management Review

measures with respect to quality management, information security and the protection of personal

In order to properly manage all information handled in the course ofbusiness operations (excluding information widely disclosed outside
the Company) based on the Standards of Conduct and the Information
Security Guidelines, we have established a management frameworkcomprising the Company-wide Information Security Management
Review by senior management, as well as the Information Security
Committee, the Information Security Liaison Council, the Practices
Committee, and each division.
We implement measures to effectively and appropriately manage
the information we hold and to reduce and avoid information risks to
the maximum extent possible. In addition to carrying out a range of
security measures, including those related to the handling of Company
information and countermeasures for Relationship Between Information and Security Classification
information equipment, wePublicly Released Information
appropriately conclude written
Corporate Information
pledges, confidentiality agreements,
Other Informationand other agreements with suppliers,
Classiﬁed
Highly Classiﬁed
cooperating companies, employees
Information Requiring
Stringent Management
and other relevant parties necessary
Information onIntellectualfor legal compliance concerning thePropertyuse of information.
Highly Classiﬁed
In the event of an information
Classiﬁed
security incident, we will promptly
Other Information
restore the security system and takePublicly Released Information
corrective measures.

(including Personal Data Protection Management Review)

Based on Commitment (our business philosophy) and Standards of Conduct, we implement effective

Information Security① ② ③ ④ ⑤ ⑥ ⑦

In order to deliver high-quality infrastructureand services to customers(Convenes when personal data leakage or other incident occurs)

Information Security Liaison Council
Company-wide consultation contact
Personal data protection management promotion officer
Personal data protection division management officer
Personal data protection division manager
Personal data protection management implementation officer
Consultation contact staff
Handler of personal data

*1 CRO：Chief Risk-compliance management Officer*2 CPO：Chief Privacy Officer

PrivacyMark
We protect personal data in compliancewith JIS, and have obtained the PrivacyMarkawarded by JIPDEC to business entities
which properly handle personal data.

28

Community Involvement andDevelopment

Fair Operating Practices

Ensuring fair, transparent and free competition
and appropriate business transactions
We provide fair business opportunities to suppliers, and prioritize doing business withcompanies that comply with relevant laws and regulations, take the environment into

We contribute to the advancement of society by supporting various activities as a company that handles social infrastructure.
As a good corporate citizen, we value communication with local communities and actively engage in social contribution activities.

consideration, and have excellent technology and quality.

Social Contribution Activities

Procurement Policy

Basic Policy for Social Contribution Activities

We hold a firm belief that materials procured should be ofsuperior quality and safety to meet each of our customers’needs.
Our unique Standards of Conduct and Toshiba Group Procurement
Policy govern and ensure that our sourcing, contracting andpurchasing activities are ethical, efficient and accountable while

compliance to laws and regulations is met and all efforts are madeto preserve the environment. We seek a wide range ofpartnerships with like-minded companies who share with us thesame corporate values of fairness, openness, and building longtrusting relationships, as we believe that together we can prosper.

Supplier Expectations
4. ‌Maintaining Sound Business
Operations
5. ‌Securing Excellent Product Quality
6. ‌O f f e r i n g G o o d s a n d / o r
Services at Appropriate Prices
7. ‌Firm Delivery Commitment
and Establishment of Stable
Supply Structure
8. ‌Enhancement of Technological
Capabilities
9. ‌Continuing Supply in Times ofUnexpected Circumstances

Establishment of Whistleblower System (Clean Partner Line)
Various training programs related to compliance during
procurement are provided to officers to ensure fair trading
practices. In order to ensure compliance and fair transactions, weestablished a whistleblower system for our suppliers called Clean
Partner Line, in January 2007. If any violation of the law andregulations should arise during business transactions, our suppliers
notify us. We establish more transparent relationships of mutual
trust with the suppliers, and develop sound partnerships with the
suppliers.

Philosophy on Intellectual Property
In addition to complying with the Patent Act, the Copyright Act,and other laws and regulations related to intellectual property
rights, as well as respecting the legitimate intellectual property
rights of third parties, we use intellectual property rights to protect

1. Assistance for efforts to pass down Japanese culture and techniques	In order to pass ancient Japanese culture and wonderful traditions down to future generations,
we support efforts to restore and preserve cultural properties, and help pass down restoration
techniques and skills.
2. Assistance for activities to improve social infrastructure	In addition to improving social infrastructure through our business activities, we contribute todevelopment of local communities by supporting programs to upgrade infrastructure in
inadequate condition.
3. Assistance for activities to develop future generations	We support the construction of schools and other educational facilities that provide learning
opportunities to children that will build our future society.
4. Promotion of activities rooted in local communities
	We value communication with people in local communities in which we operate, and continuallyengage in programs that contribute to local communities.

Assistance for Efforts to Pass Down Japanese Culture and Techniques
the outcomes of our technological activities, and contribute tosociety by actively utilizing these intellectual property rights in ourbusinesses.

Handling Anti-Social Forces and Our Policy
The basic policy for internal controls stipulates that officers andemployees of the Group shall reject any relationships with antisocial forces that pose a threat to the order and safety of civilsociety, and the entire Group shall take a resolute approach to allsuch issues.
As a concrete measure, the Group has strengthened
collaboration, steadily implemented public relations supervision
training, worked to share and utilize information related to public

Activity Concepts

relations. The Group also investigates the attributions ofcounterparties when initiating new business transactions and has
thoroughly introduced organized crime group elimination clauses
into business contracts. In addition, we have built a system thatallows us to cooperate with external organizations such as policeand corporate attorneys, and to respond appropriately and in atimely manner to any approaches from anti-social forces.

▌Assistance in restoration and preservationof domestic cultural properties
In order to pass down precious
Japanese cultural properties to future
generations, since FY2010 we have been
assisting*2 with activities to restore andpreserve cultural properties through the“project to restore and preserve culturalproperties in Imperial Convents”*1.
*1 ‌Project to restore and preserve cultural properties inImperial Convents: Project to restore and preserve thepaintings, sculptures, craft works, textiles, and historic
structures owned by Imperial Convents for posterity.
*2 ‌This project is sponsored by the Medieval JapaneseStudies Institute, and we provide support through theFoundation for Cultural Heritage and Art Research.

Key projects supported by the project to restore
and preserve cultural properties in Imperial Convents
Year
2017
2016
2015
2014
2013
2012
2011
2010

Assistance project

Location

The ongoing conservation of a statue of
Senjuin no Miya at Shinnyoji temple
The conservation of a statue of Abbess
Gekkyoken at Shinnyoji temple
The conservation of a statue of Kotokuin
no Miya at Shinnyoji temple
The conservation work on a set of Genjiscreens belonging to Chūgūji Imperial Convent
The conservation of a statue of Hongakuin
no Miya at Shinnyoji temple
The repair and preservation of the outer garments of a layered court
costume (the uwagi and karaginu of a jūnihitoe) owned by Reikanji temple
The restoration of a nikai-zushidana, a two-tiered decorated
cabinet, belonging to Sanji Chion-ji Imperial Convent
The restoration of the Nanakusa Emaki
handscroll belonging to Hokkeji Imperial Convent

Kyoto
Prefecture
Kyoto
Prefecture
Kyoto
Prefecture
Nara
Prefecture
Kyoto
Prefecture
Kyoto
Prefecture
Kyoto
Prefecture
Nara
Prefecture

Community Involvement and Development

2. ‌Considerations to Human Rights,
Labor, Health and Safety
3. Environmental Considerations(1) ‌Suppliers are encouraged to adopt ISO
14001-based environmental management
systems and to promote third-party
certification.
(2) ‌Suppliers are encouraged to reduce or
eliminate use of potentially hazardous
substances and to utilize Green Procurement.
(3) ‌Suppliers are encouraged to promote
environmental protection activities.

As a company that handles social infrastructure, we contribute to sound and sustainable
development in the main countries and territories in which we operate, based on the Toshiba Plant
Systems & Services Corporation’s Standards of Conduct.
In Japan, we support activities related to restoring and preserving cultural properties in order topass down ancient Japanese culture to future generations. Overseas, we provide ongoing support
for activities related to improving social infrastructure and developing future generations(construction of schools, etc.).
Also, as a good corporate citizen, we value communication with local communities and promotesocial contribution activities.
Fair Operating Practices

1. ‌Compliance with Laws and Regulations,Social Customs, Etc.
(1) ‌Ensuring compliance with the prevailing laws
and regulations, including anti-trust laws,
commercial codes, subcontractor regulations,construction business act, personal privacy
laws, ordinance for eliminating organizedcrime groups, etc.
(2) ‌Prohibition of bribery (any gift, payment,
consideration, financial or non-financial
advantage or benefit of any kind whichconstitutes a corrupt and illegal practice)29

Contributing to the sound and sustainable
development of local communities

a statue of Abbess Gekkyoken(After restoration)

30

Community Involvement andDevelopment
Assistance for activities to improve social infrastructure

Assistance for Activities to Develop Future Generations▌Support for the infrastructure projects in emerging countries
As a company that handles social infrastructure, we have helped upgrade inadequate infrastructure since FY2014 in emerging
countries where we have deep business ties, and offer assistance to contribute to the development of local communities.

▌‌Support for the construction of schools andother educational facilities in emerging countries
Since FY2010, we have been providing assistance* for theconstruction of school buildings, dormitories and otherstructures for elementary and junior high schools, as well as
pre-schools, so that children
in emerging countries canhave opportunities to learn.

Key projects supported*‌Assistance: Funding throughthe Nonprofit Organization
World Vision Japan

2014 Construction of Mwakikoya Primary School Tanzania

Key projects supported
Year
2017

Assistance project
Installation of drinking
water supply system*1

2016 Bridge construction*1

2016

Country

We built a safe and durable bridge to replace the bamboo
bridge that junior high and high school students in the area
Philippines
designated for support were using to go back and forthfrom school as well as for transporting agricultural products.

We installed solar power generation facilities with storage batteries
Solar power generation
at an elementary school in an area without electricity so that Philippines
facilities*2
students can learn in a comfortable environment under lighting.

Installation of2015
water system*1
2014

Description

We installed drinking water supply system equipment (water
storage tanks, water supply pumps, drinking water filters, etc.) in
Thailandorder to supply safe water to elementary schools in four towns
in Kingdom of Thailand, Sa Kaeo Province, Ta Praya District.

Installation ofwater system*1

Children now able to drink clean water(Thailand)

We built a water system, including an RO System (Reverse
Osmosis System) to a well in the area designated for India
support, in order to supply safe water to local residents.

VOICE

Program Coordinatorof Development
Program Unit 1,
Program/Operation
Department

Corporate andMajor Donor
Unit, Marketing
Department 1

Ms. Minori Tanimura Ms. Chigusa Ikeuchi Ms. Mitsuko Sobata

Country

Current school buildings primarily made of bamboo wood are2017 easily damaged by wind and rain, and are not very durable. Indonesia
By constructing strong brick or cement school buildings, we
provide a safe and secure learning environment for children.

2016

Construction of the Vien Son Primary andVietnamSecondary School Dormitory

2015 Construction of Trung Dinh Satellite Preschool Vietnam
2013 Construction of Nonchan Kindergarten

Laos2012 Construction of Gezani Primary School

Tanzania

2011 Construction of Beribide Primary School

Bangladesh

2010 Construction of Shadashivbari Primary School Bangladesh

Promotion of Activities Rooted in Local Communities

World Vision Japan is an international non-profit organization engaged in activities tosupport the healthy growth of children around the world. We were established in 1987
as World Vision’s Japan office, and we celebrated our 30th anniversary this year.
World Vision engages globally in activities centered on three core areas: development
support, emergency humanitarian assistance, and advocacy (putting forward policy
recommendations). In FY2017, World Vision Japan carried out 123 projects inapproximately 30 countries. As a partner supporting these activities, since 2010 Toshiba
Plant Systems & Services Corporation has been assisting with 12 of our projects in eight
countries, mainly in the fields of education and social infrastructure. Specific examples
include installation of water system, bridge construction, and construction of schoolbuildings, dormitories and other structures for educational institutions in Asian
countries. Going forward, we will continue to work closely with Toshiba Plant Systems &Services Corporation on projects aiming to improve education and protect people’s
lifestyles, all while sharing the latest information and otherwise staying in close contact.

▌Local volunteer activities▌Volunteer snow removal for the elderly, etc.

▌Volunteer clean-up events▌Forest maintenance▌Collection of PET bottle caps

▌Commemorative backpack gift

We participate in events to sell sweets made bydisabled people in the Company cafeteria, andparticipate in activities to support their independence.

We participate in events to maintain
forests, including thinning operation.

We participate in activities to clear
snow around elderly people’s homes.

We participate in events to provide
vaccines to children around the world
by donating collected PET bottle caps.

We pick up trash, cigarette butts andother items discarded near businessoffices and worksites.

We participate in events to collectused backpacks and send them tochildren overseas.

Supporting Activities of the Solar Lantern Project▌‌Support for delivering electric Light to people
living without electricity
There are still many people in the world who
have no access to electricity. As a company that
handles social infrastructure, we have been
stretching out a helping hand since FY2008 to the“Solar Lantern project”* expanded in India.
As the first Japanese company to participate inthis project, we have donated a solar panel (onepanel) and 50 chargeable LED lanterns to people
living in more than 50 villages without electricity.
Going forward, the Group will continue todeliver electric Light.
* ‌Solar Lantern project: Funding to The Energy and Resources
Institute (TERI) of India through the NPO Gaia Initiative

31©JOICFP

VOICE

Solar panels

Solar Lanternuser

Community Involvement and Development

Team Leader ofCorporate and Major
Donor Team, Corporate
and Major Donor Unit,
Marketing Department 1

Bridge construction (Philippines)～Working with our supporting partners～

Nonprofit Organization World Vision Japan

Assistance project/Description
Currently constructing the Ledang Primary School

Our business offices and worksites engage in activities to contribute to local communities. Goingforward, as a good corporate citizen we will continue to actively engage in social contribution activities.

We built a water system, including a disinfectant tank, water storage tank,Philippines
and water distribution pipes, to provide safe water to local residents.

*1 Funding through the Nonprofit Organization World Vision Japan*2 Facility installation and donation through Lions Club Tokyo Akasaka

Vien Son Primary and Secondary
School Dormitory (Vietnam)

Year

Overseas training from a rugby trainer (Innovation Planning Division)

In 2004, I acquired A1 referee certification by the Japan Rugby Football Union. Ever since, I havebeen a volunteer referee for major matches, and since 2013, I have been the vice chair of the Union’sTechnical Committee’s Refereeing Division, as well as a trainer of new referees, along with other duties.
The Union is focusing not only on strengthening Japan’s national team ahead of the first Rugby
World Cup in Asia to be held in 2019 and the Tokyo Olympic and Paralympic Games in 2020, but also
on developing referees. As a concrete strategy, between April 2018 and March 2019, I will engage intraining in three countries (New Zealand, U.K., and Ireland) in order to study the referee certification
systems in other countries and to improve my own skills as a trainer. The Company has given its
approval for me to participate in this training based on a request from the Union. In addition toactivities as a trainer, I am studying at a language school each day to improve my English conversation
ability. It is my hope that this experience will help me to contribute to a successful Rugby World Cup
and Tokyo Olympic and Paralympic Games.

Coaching a 13 year-old girl.
Overseas, prospective referees havealready started working to obtain
international referee certification at
this age. (In Wellington, New
Zealand)32

Environment

Engaging in environmental activities
in all EPC business processes

Environmental Activities and Material Flow
The material flow below shows the extent to which business activities impact the environment.

Business activities

We recognize that working to solve environmental issues in all of our business activities
is one of the main pillars of the company’s management. All of our employees strive to
reduce the environmental impact of our business activities.

INPUT(Amount used)

Procurement of materials and services

OUTPUT (Environmental impact)

Environmental risks

Promotion of reducing environmental impacts

Zero environmental non-conformance

Prevention of environmental non-conformance

Energy-derived CO2 emissions
Amount of Emissions: 2,907 t-CO2

EnergyElectricity: 3.84 million kWh
Gasoline : 252 KL
Light oil : 108 KL

Environmental Management
Our Stance on Environmental Management
The Group has established an“Environmental Management Concept”and a“Basic Policy for theEnvironment,”and we carry out environmental activities in line with both.

Mitigation of climate change

Materials

Eﬃcient use of resources(Waste associated with construction)

Copy paper: 35,050,000 sheets

Conservation of biodiversity

Amount of generated waste
Total amount of discharged waste: 1,333 t
Final disposal volume:
3.8 t
Copy paper
Number of trees cut down: 2,696 trees

Provision of facilities and systems to customers▌Environmental Management Concept
We work to reduce the environmental impact of our EPC business activities.
▌Basic Policy for the Environment
Based on the Toshiba Group Environmental Vision, we incorporate the following environmental management
activities in all EPC processes in order to reward our customers’trust and contribute to the advancement of society.
1. ‌Viewing the protection of the global environment as one of management’s primary responsibilities, we
promote environmental activities, including the protection of biodiversity.
２. ‌We strive to prevent global warming and to effectively use resources in all of our business activities, fromdesign to maintenance services.
３. ‌We develop products and technologies, as well as improve our services, so as to reduce environmental impact.
４. ‌We comply with all laws and regulations, guidelines we have endorsed, and our own environmental standards.
５. ‌We work with local communities, and all of our employees, including members of affiliates, engage inenvironmental activities.

(Note) The values above are from FY2017.
Criteria used to calculate energy data
Copy paper
Conversion coefficient for CO2
Conversion coefficient for trees used for copy paper

Electricity:Power consumption of offices and factories. Gasoline and light oil: Fuel for vehicles used by offices and worksites.
Copy paper: Amount of copy paper purchased by offices and factories.
Electricity: 5.31 t-CO2 /10,000 kWh Gasoline: 2.32 t-CO2/KL Light oil: 2.62 t-CO2/KL
13,000 sheets (Size A4) /tree

Environmental Activity Targets
We will work to reduce environmental impact in all processes of our business activities.
Activity Objective

Activity Items

Maintenance of zeroenvironmental non-conformance

Continuance of zero environmental nonconformance

Zero environmental non-conformance

Mitigation of climate change
Efficient use of resources
Conservation of biodiversity

Activity Target

Reduction of energy-derived CO2 emissions

Maintenance of activity level

Reduction of total amount of generated waste

Reduction of amount of discharged waste

Sorting of waste with more care

Improvement of recycling rate

Reduction in amount of copy paper purchased
Promotion of purchase of eco-friendly products

Promotion of paperless meetings
Promotion of 3R activities
Promotion of green procurement

Activities to reduce environmental impact in all EPC processes

Initiatives for Conservation of Biodiversity（ Engineering ）• Development and proposals
of systems and products to
reduce environmental impact

P（ Procurement ）• Promotion of green
procurement

C

Construction（ Commissioning）• Eco-friendly construction• 3R* activities▌Results by March 31, 2018

Environment

E

In October 2017, we launched paperless meetings as a new initiative. Meeting materials that werepreviously distributed in paper form are saved as data, and tablets and other devices are used inmeetings to view the contents. By doing so, we encourage meetings where distribution of papermaterials is not necessary on a Company-wide level.
Reduction‌of roughly 340,000 sheets of paper on an A4 conversion
basis (Approximately 26 source trees)

Reduction of approximately
340,000 sheets

Source trees:

Reduced by approx. 26(A4 conversion basis)*3R: Reduce, Reuse, and Recycle

33

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Highlights of Consolidated Financial Results

Environment

Initiatives to Mitigate Global Warming

FY2015In order to control the emissions of carbon dioxide (CO2), which is said to be the main factor behind
global warming, we are working on various activities to reduce CO 2 emissions derived from energies
such as electricity and vehicle fuel used at factories, offices, and worksites.
Company-wide Workplace Electricity Use (Unit: 10,000 kWh)Results

500

382

400
300
200

208

210

208

100
0

164

218

FY 2013

FY 2014

FY 2015

FY 2016

Presumed384
84

Company-wide Vehicle Fuel Consumption (Gasoline)
400
300
200

300

FY 2017100
0Fuel used

Annual distance driven

324.26303.8412.6km/L

12.5km/L

276.55(Unit: kL)

Average fuel economy
13.5km/L

13.6km/L

245.13251.653,298
thousand km

3,421
thousand km

FY 2016

FY 2017

4,061
thousand km

3,992
thousand km

3,686
thousand km

FY 2013

FY 2014

FY 2015

Although the distance traveled and the numberof vehicles vary yearly depending on construction
details and locations, we are working to reduce
fuel consumption by implementing eco-friendly
driving and using eco-friendly cars and otherinitiatives.

From FY2016, we also considered offices that are located in othercompanies’business sites and for which we are unable to actually
measure the amount of electric power we use, and included those values
in Company-wide figures.
In FY2017, we added workplaces where actual measurements are made.

The power CO 2 emission coefficient is the receiving end
coefficient. Because this graph shows the trend in electric poweruse, a coefficient of 5.10 t-CO2/10,000kWh was applied for all
fiscal years.

Example of clean energy construction (biomass power generation station construction worksite)

This biomass power generation station uses wood chips made with construction waste materials as fuel.

This not only results in the recycling of resources, but also leads to a decline in CO2 emissions (carbon

neutral). Also, the steam generated during the power generation process is recycled (thermal recycling)and supplied to nearby businesses as steam for business use. We handle all aspects of the project, fromengineering to procurement, installation and trial operation and adjustments of key equipment including
boilers and turbine generators, civil engineering work, construction, and electrical equipment work.

Site Manager ofFacilities & Systems
Engineering
Department, Industrial
Systems Division

Initiatives for Efficient Use of Resources
We are working on various activities, such as reducing the total amount of waste generated andemitted in conjunction with construction at worksites, and at business sites, and improving the recycling
rate by thorough separation of waste in order to effectively utilize assets.
VOICE

FY2017

Net sales(Millions of yen)

219,353

226,867

232,570

Ordinary income(Millions of yen)

18,72019,093

20,238

Profit attributable to owners of parent(Millions of yen)

11,242

12,796

13,551

Comprehensive income(Millions of yen)

7,645

15,07815,894

Net assets(Millions of yen)

121,281

133,288

145,379

Total assets(Millions of yen)

238,254244,407

256,003

Net assets per share(Yen)

1,241.90

1,365.06

1,489.03

Basic earnings per share(Yen)

115.40131.36139.11Equity ratio

(％)

50.8

54.4

56.7

Rate of return on equity

(％)

9.5

10.1

9.7

Price-earnings ratio(Times)

11.94

12.37

16.48

Cash dividends per share

(Yen)

37.50

38.00

40.00

Dividend payout ratio

(％)

32.5

28.9

28.8

Cash flows from operating activities(Millions of yen)

25,210700

16,726

Cash flows from investing activities(Millions of yen)

16,332△ 1,518△1,828Cash flows from financing activities(Millions of yen)

△ 2,444△ 3,082△3,810Cash and cash equivalents at end of year

(Millions of yen)

91,63387,99699,28913.0km/L

In FY2017, we eliminated andconsolidated working space in
the Fuchu Office, and asenvironmental measures weswitched to LED lighting andinstalled hybrid fans to increase
the efficiency of the air conditioning system.

VOICE

FY2016

Kansai Branch Office: Site Office for the Project Involving a High-voltage Transformer at a Sewage Treatment Plant

Following an October 2017 amendment to a Ministry of the Environment enforcement order, we are now required to dispose offluorescent light tubes (which we formerly disposed of as scrap glass) as a mercury-added industrial waste product. At thisworkplace, the disposal of fluorescent tubes in existing panels falls under the scope of these new regulations, but since theamendment to the law had just been made, we were unable to verify the specific disposal standards, so we worked with relevant
parties to establish the following countermeasures that should be considered to ensure that final disposal complies with all rules.
❶ Do not break fluorescent tubes; ❷ Attach numbers to all fluorescent tubes in order to verify the quantity discarded; ❸ Wrap thefluorescent tubes in protective sheets and transport to disposal; ❹ Meticulously save photos of all processes leading up to disposal.
We implemented these countermeasures and safely disposed of the fluorescent tubes as industrial waste. We will continue toconsider the environment as we build social infrastructure, which is our mission.

Net sales

Ordinary income(Millions of yen)

Site Manager of Infrastructure
Systems Group (at the time),
Engineering & Construction
Department, Kansai Branch Office219,353

226,867

232,570

Proﬁt attributable to owners of parent(Millions of yen)

18,72019,093

2015

2016(Millions of yen)

20,238

12,796

13,551

11,242

United Republic of Tanzania: Site Office for Gas Fired Combined Cycle Power Plant Project
In an effort led by end-users and customers, we reused packaging waste generated at the construction site to produce
46 desks, 60 chairs, and three bookshelves. These were then donated to nearby elementary and junior high schools. We
managed the packaging waste on a daily basis, brought it to a furniture processing factory near the power station, andthe furniture produced was then delivered to the schools. Effectively using resources through the 3R (Reduce, Reuse,
Recycle) activities brought smiles to the faces of local children, which in turn brought great joy to everyone involved.

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2015

2016

2017(FY)

2017(FY)

2015

2016

2017(FY)36

http://www.toshiba-tpsc.co.jp/

TOSHIBA PLANT SYSTEMS & SERVICES CORPORATION
Tsurumi Toshiba Building, 36-5, Tsurumichuo 4-chome, Tsurumi-ku,
Yokohama City, Kanagawa, 230-8691, Japan
TEL: +81-45-500-7050 FAX: +81-45-500-7155