Tokuyama is one of the world’s leading polycrystalline silicon manufacturers, boasting highLiquid Hydrogenproduction capacity. The Company drew on its superior technological capability, which enabled it toachieve 99.999999999% (referred to as “eleven-nines”) pure polycrystalline silicon. This material
has become essential to the manufacture of high-performance semiconductors. Today, on the backof growing calls for renewable sources of energy, polycrystalline silicon is also used as a material
for solar cells. To meet increasing global demand for this material, Tokuyama has constructed newpolycrystalline silicon production facilities in Malaysia that utilize the abundant clean energy

Specialty Products Business Division• Polycrystalline silicon• Fumed silica• Aluminum nitride (A N)• High-purity chemicals for electronics
manufacturing• Positive-type photoresist developer, etc.

generated by a hydropower plant located in the region. In this way, Tokuyama is making asubstantial contribution to the generation of environmentally friendly energy.

Next-Generation
Clean Energy

In recent years, the Japanese government and industries nationwide have been striving to utilizehydrogen as a next-generation clean energy source to replace fossil fuels. Employed in the semiconductor
and solar cell manufacturing processes, hydrogen is also used as a rocket fuel, including for the H-IIA,
Japan’s primary large-scale space launch vehicle. With applications as diverse as hydrogen fuel cells, theChemicals Business Divisionuse of hydrogen as an energy source is anticipated to expand even further.

• Soda ash

Taking the above into consideration, Tokuyama established Yamaguchi Liquid Hydrogen Corporationin tandem with Iwatani Corporation, a pioneering company in the hydrogen business. Yamaguchi Liquid
Hydrogen enables the efficient transportation and storage of hydrogen by liquefying it at minus 253
degrees Celsius. Such liquefied hydrogen is made of high-quality hydrogen generated through aproprietary Tokuyama technology involving brine electrolysis using zero-gap electrolyzers, a process thatsimultaneously produces caustic soda, chlorine and hydrogen.
Seeing that liquid hydrogen is gaining ever greater significance as a source of clean energy, theTokuyama Group will push forward with its efforts to exploit this beautiful next-generation energy source.
1

Pure Materials• Calcium chloride• Caustic soda
• Propylene oxide• Chlorinated solvents (methylene chloride, etc.)• Vinyl chloride monomer and resins• Hydrogen• Isopropyl alcohol for industrial use, etc.
Photo: ©JAXA

Polycrystalline Silicon2Life & Amenity Business Division

Waste Plasterboard Recycling• Active pharmaceutical ingredients (API)• Photochromic materials• Hard coating solutions for plastic lenses• Microporous films• Polyolefin films

Tokuyama’s microporous film “Porum®” has been adopted as the backing sheets for disposable
diapers, which make use of its unique ability to let air and moisture pass through it while confining
water. Employing a proprietary biaxially-stretched tubular process, Tokuyama succeeded in creating
a film with improved air and moisture permeability along with increased strength.
Tokuyama established a production base in Shanghai, China, in 2002, with an eye on the
rapidly growing market for disposable diapers in that country. In December 2012, Tokuyama went
on to kick off operations at a second Chinese production base in Tianjin. While enhancing• Ion exchange membranes and electrodialyzers

productivity through the improvement of production methods, Tokuyama will continue to• Reagents, analyzers and systems for clinical tests

strengthen its supply structure with the aim of accommodating growing market needs backed by• Sensing elements and devices

rapidly heightening demand for improved everyday hygiene among the Chinese populace.

• Dental materials and equipment• Plastic window sashes, etc.

Advancing
Recycling

Plasterboard is a construction material used for such applications as the interior walls and ceilingsof housing and buildings. Although a portion of plasterboard waste generated from the construction,
demolition and remodeling of structures is recycled, most is disposed of in landfills, giving rise toconsiderable environmental concerns. In response, Tokuyama has devised a process for
re-crystallizing particles of waste plaster into a form that is easy to handle and recycle. While

Comforting
Technology

Cement Business Division• Various types of Portland cement• Portland blast furnace slag cement• Cement for dam construction

previously, the waste plaster recycling rate could never surpass 10%, we have succeeded in raising• Cement-type stabilizer

the recycling rate substantially with this process. Moreover, Tokuyama established Tokuyama• Ready-mixed concrete

Chiyoda Gypsum Co., Ltd. jointly with the major plasterboard manufacturer Chiyoda Ute Co., Ltd.

• Recycling and environment-related businessThis joint venture began operation in March 2013. Tokuyama’s technological innovation aimed at• Plaster sheet for inkjet printing“Fresco Giclee,” etc.

contributing to a recycling-oriented society is drawing great interest.
3

Microporous Films
4

Top Message

Toward Achieving the Centennial Vision
Centennial
VisionPursuing “Venture Spirit & Innovation” to Achieve Our
Centennial Vision
In 2018, Tokuyama Corporation will mark the centennial anniversaryof its founding. The ideal that we aspire to under the Centennial
Vision is for the Tokuyama Group to remain a “prominent manufacturer that is responsive to society and helps create a better future
through the vitality of its human resources and the creativity of chemistry.” To realize this ideal, all of us throughout the Group are rallying
our strengths in the pursuit of “Venture Spirit & Innovation,” thevision’s underlying principle.
We believe that no corporation can survive in the global market
unless it continues to change. Tokuyama will no longer confine itself tooperations that revolve around domestic demand. Rather, we willtransform ourselves to win among global competition, establishing abusiness structure that allows us to secure profitability and achievesustainable growth, even in a harsh operating environment.

Communication with Stakeholders Is Key to
CSR Activities
Looking ahead, we will continue to ask ourselves the same question,“What is our social responsibility?” Working diligently and constantly
to find the right answers to this question, we will consistently promote
CSR-oriented global corporate management.
We invite readers to provide us with feedback and welcome a frankexchange of views with them in connection with our activities and initiatives.

Strengthen
Growing
StrategicallyBusinesses

Human Resource-based Management
Promotion of CSR Activities

Pursuing Four Strategies under theManagement Slogan“Venture Spirit & Innovation”

In the CSR Report 2011 and the CSR Report 2012, we discussed the Centennial Vision with a focus on three growth strategies: “Growing,”“Creating” and “Integrating.” In the CSR Report and Corporate Profile 2013, we have added another strategy, “Diversifying,” in order to include in
the scope of this report the vital role our diverse human resources play in achieving the Centennial Vision.

Contents
1 Business Operations Highlights

July 20131

Liquid Hydrogen2

Polycrystalline Silicon

the mainstay is the polycrystalline silicon business. Developed as a material for electronic parts and compo-

3

Waste Plasterboard Recycling

nents, particularly for semiconductor applications, polycrystalline silicon has driven the expansion of our

4

Microporous Films

Strengthen Strategically Growing Businesses (See page 9)Under its Centennial Vision, Tokuyama aims to strengthen strategically growing businesses, among whichGroup operations. Recently, against a backdrop of rapid adoption of solar batteries as a means to curb

The Foundation of the Centennial Vision’s Basic
Strategies—Human Resources and CSRWith regard to the management of human resources, we believe that it
is essential to offer our employees a vibrant and lively working environment that inspires devotion to duty. We also believe that our efforts
to nurture human resources and assist their development will bolster
the foundation of the Group’s operations, which, in turn, will allow us
to achieve continuous business growth.
In the promotion of Corporate Social Responsibility (CSR) activities,
we recognize employees as important stakeholders. In line with thisrecognition, we are facilitating the setting of career goals to ensurethat all employees are motivated in their work while promoting theirmental and physical health and the improvement of the work-life balance. By doing so, we are seeking to create a vibrant workplace thatenables employees to put “Venture Spirit & Innovation” into practice.

global warming, polycrystalline silicon has grown into a sought-after material for solar panels and is quickly

Proactively Promoting Environmental Management
under the “Safety First” Basic Policy
On the manufacturing front lines, a “safety first” basic policy underlies
all our operations as we strive to thoroughly improve manufacturing
processes and promote energy conservation in accordance with ourgoal of creating high-quality, highly efficient products. Through suchinitiatives, we endeavor to gain the confidence of society while continuing to grow in scale and enhance quality.
At the same time, we promote environmental management at eachphase of operations, knowing that putting greater emphasis on environmentally conscious approaches will, in turn, enhance our corporate
value and help secure continuous business expansion.

Create New Businesses (See page 13)

becoming indispensable to today’s society.

5 Top Message
6 Toward Achieving the Centennial Vision
7 Tokuyama’s CSR
8 Corporate Governance

Vitalize Human Resources (See page 11)
Tokuyama believes that its efforts to nurture human resources and assist their growth will bolster theGroup’s foundation and, in turn, facilitate its continued expansion while enhancing corporate value overthe long term. In line with this belief, we are promoting Diversity & Inclusion Management, an initiative
aimed at creating a personnel system and corporate culture that welcome a workforce of diverse individuals while allowing all employees to realize their full potentials and feel rewarded.

9 Special Features: the Centennial Vision

9 GrowingBlazing a Trail to the Future
11 Diversifying
Nurturing Vital Human Resources
13 Creating
Utilizing Chemistry Creatively
15 Integrating

Tokuyama creates environmental technologies and products with an emphasis on social contribution andreducing environmental impact, even from the development stage. Focusing on the three growth fields ofRemaining Responsive to Society
17 Responsible Care (RC)“information and electronics,” “environment and energy” and “life and healthcare,” Tokuyama is leverag-20 Process Safety, Disaster Prevention

ing the inorganic chemical and crystal technologies that it has accumulated over the years to accelerate

and Occupational Health and Safety

product development. As the latest accomplishment of its R&D activities, Tokuyama has succeeded in thedevelopment of a deep ultraviolet light emitting diode (DUV-LED). This innovative LED will contribute to thefields of medical care, water purification and food sanitation and is expected to be used as a substitute for
mercury lamps, which have a significant negative impact on the environment.

21 Promoting Environmental
Management
24 Tokuyama Science Foundation
25 Third-Party Comments
26 The Tokuyama Group at a Glance

Bolster International Competitiveness (See page 15)
The unparalleled energy efficiency and superior technologies that we have nurtured at the frontlines ofmanufacturing operations have made our mainstay Tokuyama Factory internationally competitive. By step-Kazuhisa Kogo
President
5• The “Earth,” “Blessings” and “Life”: Keywords for Our Cover Art
The artwork on the cover is designed to symbolize our responsibility
to the blessings we receive from the Earth and the living beings itping up the Group’s integrated manufacturing operations even further, Tokuyama is working to establish ashelters while also representing our unshakable technologicalhighly profitable business structure. Simultaneously, we are pursuing global expansion, with the Tokuyama

strengths and warmth and happiness in people’s lives. These designs

Factory bolstering our operations as a “Mother Factory.” Furthermore, we aim to make the Tokuyama

allude to the Group’s relationship with the world, which is built
through our pursuit of business and the provision of products. The

Factory a manufacturing base that coexists and grows with local communities while establishing closebackground design expresses the energetic forward momentum

communication with them.

driving changes in the world.

6

Tokuyama’s CSR

Corporate GovernanceManagement That Is
Responsive to Society
Basic
Philosophy

Basic Policy

Tokuyama’s CSRManagement thatis responsive to society
Implementation of CSR Activities

Basic Philosophy of Tokuyama’s CSR-Oriented Management
Tokuyama approaches its CSR activities in accordance with a basic philosophy of continuously working with society to build a sustainable future and promoting corporate
activities that are evaluated highly by its various stakeholders, namely, shareholders,customers, employees, trading partners, communities and society as a whole.

Build good relationships withvarious stakeholders
CSR Foundations
Ensuring sound corporate governance
Establishing effective internal control system
Securing compliance
Strengthening risk management
Promoting Responsible Care activities
Tokuyama Group Code of Conduct
Tokuyama Group Guidelines for Business Activities

Accelerating Our CSR Initiatives
I recognize that the fulfillment of our Corporate Social Responsibility
must involve the cultivation of harmonious relationships with our stakeholders. More specifically, we must always be aware of the social andenvironmental impact that each phase of our business operations exerts
while maintaining complete accountability for our impact. Based on thispremise, the Tokuyama Group is seeking to contribute to the creationand development of a sustainable future through its CSR activities.

Aiming to remain a “prominent manufacturer that is responsive tosociety,” for many years the Tokuyama Group has been pursuing
Responsible Care (RC) activities initially begun in the form of voluntary
chemical substances management. Through our RC activities, we havealso been promoting environmental management and achieved significant reductions in unit energy consumption as well as the commercialization of resource recycling utilizing our cement plant.
Recently, the Group has been accelerating the augmentation of its
CSR foundations, aiming to enhance transparency and ethical standards. Moreover, we have been seeking to strengthen corporate governance through management structure reforms and to improve ourinternal control system, with a focus on compliance and risk management. Of course, we recognize that global CSR has become an essential issue as we expand our overseas operations.
Approaching 2018, the year in which Tokuyama Corporation will
mark the centennial anniversary of its founding, the Tokuyama Group
is evolving into something new. The underlying principle of Tokuyama’s
Centennial Vision is “Venture Spirit & Innovation.” This principle hasgrown out of our belief that no corporation can survive unless it continues to change. Looking ahead, we will step up the promotion of
our CSR activities in line with the basic philosophy of Tokuyama’s
CSR-oriented management.

Basic Approach to Corporate
GovernanceTokuyama believes that corporate governance is an
important foundation for maximizing its corporate
value. Tokuyama also believes that it must conduct
daily inspections and take steps as necessary toensure its corporate governance systems always
function appropriately.
At the same time, Tokuyama is working consistently to strengthen its compliance with corporate
ethics, laws and regulations as a means of enhancing its corporate value. Furthermore, we believe that
we can gain the trust of stakeholders—including
shareholders, customers, employees, trading partners and local communities—by accurately understanding our social responsibility and pursuing
corporate management that is responsive to society.
Corporate Governance Structure
Board of Directors and Executive Officer System
Tokuyama’s Board of Directors meets at least oncea month to deliberate and make resolutions onimportant matters regarding business operations
while supervising business operations.
To reinforce the supervisory function of theBoard of Directors, the Company has appointed
two external directors. Tokuyama also introduced
an executive officer system in April 2011 with theaim of separating the supervisory and executivefunctions for business operations.
Audit & Supervisory Board
The Company’s Audit & Supervisory Board holds
meetings to report, discuss and pass resolutions onimportant matters. Also, Audit & Supervisory Board
members frequently attend Board of Directors
meetings and various other key meetings andreceive reports on the status of business operations, thereby overseeing the execution of duties bydirectors.

Human Resources Committee
The Human Resources Committee consists of thechairman, representative directors and external
directors. This committee holds discussions on suchmatters as the remuneration for directors and executive officers and the selection of director and executive officer candidates before Board of Directors
meetings take place.
Executive Committee
The Executive Committee consists of the president
and executive officers selected by the president
and serves as an advisory body to the president.
Holding meetings twice a month to formulate management plans and important strategies, the committee also discusses and makes decisions on
overall policies and schedules with regard to theimplementation of such plans and strategies whileproviding the president with advice on the execution of business operations.
Strategy Committee
The Strategy Committee is an advisory body to thepresident and consists of the president and executive
officers selected by the president. This committee
meets once a month to discuss important projects,
deliberating on whether or not to green-light projects and the manner in which they should be implemented. Through these discussions, the committee
helps the president determine the Company’s policies for business operations.
CSR Promotion Council
Chaired by the president, the CSR Promotion
Council sets policies on CSR and lays out the goalsof our CSR activities, facilitating the execution andattainment of all such activities and goals. The
Council focuses on the strengthening of corporate
governance and improvement of internal control
systems, which together are the foundations of

CSR. It also discusses other important mattersregarding internal control.
Risk Management and Compliance Committee
Tokuyama’s Risk Management and Compliance
Committee—chaired by the director supervising the
Corporate Social Responsibility Division—operates
under the CSR Promotion Council. The Committee
takes the initiative in promoting risk management
and compliance, which are central to the development of effective internal control systems.
Helpline Committee
The Helpline Committee is responsible for theadministration of Tokuyama’s helpline (whistleblowing) system, which has been established forthe purpose of enabling the internal reporting oflegally questionable actions and behaviors byGroup executives and employees.
Departments Responsible for Internal Auditing
Tokuyama has established the Auditing Department
and the RC Management Department, which areresponsible for internal auditing. These departments
perform internal audits of individual divisions anddepartments of the Company as well as of Group
companies.
Risk Management andCompliance Promotion Systems
Under the CSR Promotion Council, we have established the following seven committees to handle
Companywide (cross-divisional) issues, particularly
those deemed important from the perspective ofrisk management and compliance, in areas coinciding with their mandates: The Financial Reporting
Committee; Fair Trade Compliance Committee;
Foreign Trade Compliance Committee; Information
Security Committee; Environmental Measures
Committee; Safety Measures Committee; andProduct Safety and Quality Assurance Committee.

Corporate Governance Structure
Shareholders’ Meeting

Tatsuo Segawa
Appoint/dismiss

Representative Director, Senior Managing
Executive Officer (The director supervising
the Corporate Social Responsibility Division)

ReportAppoint/dismiss

Board of Directors

Appoint/dismiss

Accounting Auditors

Whistle-blowing System

Audit & Supervisory Board
Human Resources
Committee

Executive Committee
Tokuyama has created the above symbol for CSR promotion. Depicting a sunflower, the symbol is intended toconvey the Company’s active, healthy and honest stancetoward CSR. Under this symbol, the Tokuyama Groupwill not only promote compliance and efficiency in its
business operations, but will also work to develop into avibrant, sound corporate entity that is socially and envi-

7

ronmentally beneficial and is trusted by all stakeholders.

Strategy Committee

Audit
Business
Operations

Audit & Supervisory Board Members

Decide/supervise

President

Collaborate

Helpline
Audit

Audit

Departments Responsible
for Internal Auditing

Auditing Dept.
RC Management Dept.
Internal audit

CSR Promotion Council

Helpline Committee

Risk Management andCompliance Committee
Seven Committees Handling
Important Companywide Issues

Instruct/educate/raise awarenessBusiness Divisions, Back-Office Divisions, Research Laboratories, Factories and Group Companies

8

The Centennial Vision: Blazing a Trail to the Future

Transforming Ourselves toBring a Breath of Fresh Air
Tokuyama Aggressively Expanding

Abundant Electricity and Human Resources

Growth Businesses

Based on long consideration, Tokuyama decided toUnder its Centennial Vision, Tokuyama aims toestablish this second polycrystalline silicon manu-

strengthen strategically growing businesses,

facturing base in addition to the one in Japan inamong which the mainstay is the polycrystalline

light of diversifying risks and to respond to thesilicon business. Developed as a material for elec-

expected medium- and long-term demand expan-

tronic parts and components, particularly forsion for this material used in solar cells. Following

semiconductor applications, polycrystalline silicona careful examination of locations, the Company

After I joined Tokuyama, I spent about two years in

has driven the expansion of our Group opera-

selected the Samalaju Industrial Park in Malaysia.

charge of dental material R&D. At Tokuyama

tions. Recently, against a backdrop of rapid adop-

There were many reasons for the selection of

Malaysia, I began my service at the Samalaju

tion of solar batteries as a means to curb global

this site, such as the region’s sufficient electricity

Technical Training Centre, where I taught new

warming, polycrystalline silicon has grown into a

supply capacity, which is a prerequisite for the

Malaysian recruits. Then, I moved to the Technicalsought-after material for solar panels and is

manufacture of polycrystalline silicon, the abun-

Coordination Section and now am involved in trial

quickly becoming indispensable to today’s society.

dance of water resources for industrial use andoperations as we move toward the commencement

In addition to the area of electronic materials

highly educated human resources. In addition,of production at the earliest possible date.

for semiconductors, Tokuyama is concentrating its

Tokuyama was able to secure preferential tax

In my daily operations, I engage with numerous

management resources on the environment andtreatment and support for the acquisition of per-

Malaysian staff from such sections as theenergy field. In doing so, Tokuyama is striving tomits and licenses from the Malaysian federal gov-

Manufacturing Department, the Logistics Service

Beginning with land preparation, Tokuyama

expand the polycrystalline silicon business glob-

ernment and the Sarawak state government. The

Department and the TMP Project Department.

ally, working to further strengthen its world-classSamalaju Industrial Park boasts an area of 8,000

I admire that they listen so earnestly to my instruc-competitiveness in this business.

hectares. Within this vast property, Tokuyama

tions and are capable of comprehending them

workforce consists of people who speak different

secured approximately 200 hectares for its factory

quickly, despite my poor English speaking ability.

languages and have various cultural backgrounds

Overview of the Malaysia Projectsites with due consideration given to future

I think such an earnest attitude and capability are

involved in all stages of the Malaysia Project,

In the past, IT was nothing more than one of myspeak English in their own country. Nevertheless, I

In the Samalaju Industrial Park, which is situatedextension. The first phase involves factory con-rare to see among Japanese staff. Sometimes, I failwhich extends from construction to plant opera-

areas of interest, or at best, just a hobby, but now

find no difficulties in communicating with Japanesein Sarawak, a state in the eastern region of

struction on a site totaling approximately 40 hect-

to come up with the appropriate English words

tions. We completed the first-phase construction

it has become an important part of my job.

staff. All I have to do is to be attentive and confirm

Malaysia, Tokuyama Malaysia Sdn. Bhd. is cur-ares. The 2,400-MW Bakun Dam hydropower

when giving instructions and end up struggling toand are expecting operational kickoff. It is not easy

Although I used to know very little about this field,

what is being discussed as I proceed with my work.

rently constructing a factory for the manufacture

plant—situated about 200 kilometers south ofcommunicate using a kind of simplified English.

trying to maximize production while placing the

Tokuyama Malaysia has given me the opportunity

I am also excited to work at Tokuyama

of polycrystalline silicon. The groundbreaking cer-the factory site—supplies electricity to the factory.

However, they work hard to understand what I’m

utmost priority on occupational safety and environ-

to polish my IT skills. Being involved with the IT

Malaysia because I can gain greater experienceemonies for first- and second-phase construction

In accordance with its clean energy policy,

trying to tell them to do, for example, asking memental conservation. I recognize that, in order to

network and systems supporting the entire factoryand knowledge by working with specialists in vari-

took place on February 16, 2011 and February 16,

dubbed Sarawak Corridor of Renewable Energy

back “Are you talking about the checking of param-fulfill these requirements simultaneously, it is essen-

production system has really given me a deeper

ous fields, such as engineers.

2012, respectively. Construction of the factory is(SCORE), the state of Sarawak is accelerating its

eter changes for… (e.g., such indexes as pressuretial to maintain close cooperation and communica-

knowledge of IT. I have also gained an understand-As the commencement of commercial produc-proceeding steadily along with the development

economic growth and development while step-and temperatures)?” Learning from their attitudes,

tion between Japanese and Malaysian staff. Withing of processes associated with polycrystalline sili-tion approaches, I expect that our workload willof the area around the factory. Commercial oper-

ping up invitations to businesses to participate in

I have been trying hard to understand what others

this in mind, I am striving to create a cooperative

con manufacturing and the shipment of thisincrease even further. However, I am proud of being

ations at the first plant are scheduled to com-

renewable energy projects. The Samalaju Industrial

are trying to say. I feel these efforts have made me

and vibrant workplace that motivates them andmaterial. Going forward, I would like to increasea part of the Tokuyama Group and determined tomence in September 2013. The cost of factory

Park has been designated as an economic devel-

quicker to grasp the point, that is, compared to justmakes their jobs rewarding. I believe that not only

my expertise in the IT field even further.

contribute to the success of the Malaysia Project.

construction is estimated at approximately ¥180

opment area under SCORE, and Tokuyama’s poly-

after I came to Tokuyama Malaysia.

the management team but also each Malaysian

Right after I entered Tokuyama Malaysia, I

billion in total, and Tokuyama Malaysia plans to

crystalline silicon operations are the first

Going to unknown places and taking on chal-staff member at the manufacturing front line isfound it difficult to understand the English spoken

employ 1,000 people for first-phase and second-

investment project undertaken in this area.

lenges in unknown fields can make you nervous

playing a significant role toward ensuring that thisby Japanese staff and it took considerable effort

and anxious. However, I believe that maintaining

company succeeds.

simply to communicate with them. But now wephase operations. While a number of Asian com-

Key to Blazing a New Trail
Is a Willingness to Take on
New Challenges
Masashi Shinagawa
Engineer, Technical Coordination
Section, Manufacturing Department

Devoting Our Best Effortsts
hetoward the Success of the
Malaysia Project
Tan Shan Shan
Working toward One Goal
beyond Language andd
Cultural Differences

Manager, Corporate Strategy Section,
Corporate Strategy Department

When I learned about Tokuyama Malaysia, there

Benjamin Chin Ching Heng

were only three Japanese staff working at the

Executive, Manufacturing Section,
Manufacturing Department

office located in Kuching. Today, this company has
grown into an enterprise that employs more than

Malaysia is constructing sophisticated chemical

Enhancing Skills throughgh
OJT as We Prepare for the
oduc
od
ucti
tion
on
Commencement of Production

plants here at the Samalaju Industrial Park. The

Diana Aren Laing

worked with native English speakers. However,

Executive, IT System Section, Logistics Service Department

panies are expanding into the Samalaju

The staff of Tokuyama Malaysia is now striv-

one’s determination to dare to take on new chal-

Noting that we are at a crucial stage of the

manage to understand each other. We have been

Industrial Park, which is growing into a huge fac-

ing to practice “Venture Spirit & Innovation” in alenges is key to blazing a new trail. It’s been a longproject, as we anticipate the kickoff of commercial

going through on-the-job training for the past cou-

tory complex, Tokuyama Malaysia is proud to be

bid to overcome a number of unprecedented

time since people began talking of the globaliza-

production, we are moving forward to success,ple of months and I hope that the training willa “top runner” as the first company that has

challenges the company is confronting. In thetion of society. I believe that, therefore, allworking hand in hand to go beyond language andincrease our physical and mental strength and get

expanded into the park.

following section, we introduce a Japanese expa-

Tokuyama staff members should recognize that for-cultural differences.

us ready for the kickoff of production.

triate and Malaysian staff members who areeign language ability is not an extraordinary skill

tackling such challenges as they work toward

but a means of smoothing day-to-day businessthe success of the Malaysia Project.

functions. In this light, all of us in the Group, not

500 staff in total at its Head Office and factory. In
my previous job at an accounting firm, I had
until I joined Tokuyama Malaysia, I had no experience in working with Japanese people, who do not

Working together with my colleagues, I will do mybest while striving for work-life balance.

just expatriates, should be more serious about
gaining a better understanding of others, just likethe aforementioned Malaysian staff.

910

The Centennial Vision: Nurturing Vital Human Resources

Each One Is Essential—
Creating a Workplace That Allows Employees toRemain Vigorous and Enthusiastic
Stakeholder Dialogue
At certain times in their lives, such as when
they marry, give birth or are faced with raisingchildren, female workers can find themselvesat critical decision points that may affect theircareer development. Tokuyama’s female
researchers are no exception. We hosted a
dialogue inviting three such women and twoother female staff members in positions ofresponsibility, encouraging them to discuss
their struggles to strike a balance between
work and family life as well as the times when
they find their job particularly rewarding.
(May 21, 2013 at the Tsukuba ResearchLaboratory)• Is Tokuyama an Inspiring Workplacefor Working Mothers?
Takahashi (Facilitator): I suppose that being
a mother changed your working style. Could you
share your experience with us, Ms. Ushioda and
Ms. Sai?
Ushioda: I have a two year-old daughter. WhenI was single, I was able to devote all of my time
to work. But now I have to put child rearing
before everything else. For example, I have topick up my daughter by six o’clock in the evening. As a result, my sense of time has changed
a lot since my reinstatement. Also, I used to bereally independent and driven to succeed on myown. Now, however, I have no hesitation in asking others for help.

Sai: Since having my child, I’ve begun making
sure that everything is ready a day before it isdue “just in case,” and always aim to finish
work as early as possible. I feel that I havebecome much more efficient in the way I work.
At the same time, I’ve begun feeling a muchgreater sense of responsibility for my junior colleagues, becoming more serious about teaching
and taking care of them.
Takahashi: Ms. Dodomi, how is your work
going as a young researcher?
Dodomi: First of all, I have to mention that
there is absolutely no difference between maleand female researchers in terms of workload.
Although I often feel quite rewarded when I see
products that I’ve developed being launched,
I’ve always thought there can be no chance forme to have my own family as long as I am up to
my neck in work. However, as I’ve been listening
to my senior colleagues, who are able to keep
working hard after getting married or having
children, I have come to believe that it might bepossible for me to juggle work and family life bychanging my way of thinking.
Takahashi: Ms. Takeda, you must have considerable experience in raising children since you
have a 12-year-old and a nine-year-old. Could
you share that with us?
Takeda: As I listen to this discussion, I remember
that, when my children were small, things neverworked out the way it said in child-rearing
books. Also, I could never keep to a schedule
because of the children. As a result, I learned to

not panic when something happens at work. I
became more flexible in how I figure out solutions. You know, children are prone to fevers
when it is least convenient, aren’t they?
Ushioda: I agree that troubles never come one
at a time. Fortunately, my supervisor and colleagues have been really considerate about mysituation and they gladly exchange their work
shifts with mine. Recently, I have also been setting things up so that I can work at home incase of emergencies.
Takahashi: A while back, one of my children
was running a high fever when I was working
on a project that I definitely wanted to completeon my own. I ended up deciding to take off fromwork and made a call to my supervisor. I wastold, “Don’t worry, we will take care of thatproject,” and felt overwhelmed with gratitude. I
am even more determined to reward my teamby doing good work. After all, I suppose it is theunderstanding of and support from my supervisor and colleagues that allow me to strike a balance between work and family life.
Takeda: I believe such a warm and accommodating atmosphere prevailing among staff members is a remarkable feature of Tokuyama’s
corporate culture.
• Cooperation of Families Is Essential
Takahashi: Ms. Takeda, you transferred from the
Tsukuba Research Laboratory to the Tokyo Head
Office this spring. How did your family respond?

Takeda: It was my eldest son who supported
my transfer most. When I heard of the transfer,honestly speaking, I was troubled because commuting to Tokyo takes two hours each way. My
12 year-old son surprised me, however, volunteering himself to pick up his younger sister,
who is still in elementary school and goes to anafter-school day-care center. He told me, “That’s
my role as older brother.” I also learned that myhusband supported his initiative. I was surprised
at how quickly he grew up and was filled withgratitude for the cooperation of my family.
Sai: As a matter of fact, my son is living in
China with my parents.
Everyone: Really!?
Sai: Of course, I wish that we could all live
together. However, I am also wondering seriously
about what is the best thing for my son. For
example, I’m worried about his education; eventhough I want him to be able to speak Chinese,
I am also worried about whether or not he will

be able to fit into Japanese society if I bring him
to Japan. Although my son, husband and I are
now living separately, I’ve never thought ofresigning my position because my job developing dental materials is so stimulating. When
products I’ve developed are highly evaluated byusers, I feel glad and fulfilled, realizing that I am
contributing to society.
Dodomi: It is always so nice and encouraging
to hear of working women supported by people
who always remain considerate of their situations. I also suppose that having a family might
increase my sense of responsibility while ramping up my motivation to work.
Sai: In China, it is normal for working women tocontinue their careers after marriage. In contrast, I hear that many efficient female researchers in Japan have to resign their positions aftergetting married or giving birth. I’ve thoughtthat this could also result in substantial loss
for companies.

Ushioda: I think that the Tsukuba ResearchLaboratory is an accommodating environment
for workers who are raising children. I’m also
aware that my junior colleagues and my daughter see me as an example of a professional, so I
feel I have to do my best as a researcher.
Takahashi: In conclusion, we expect that
Tokuyama will continue to capitalize on theadvantages of its corporate culture to realize
diversified working styles. This will, in turn, help
facilitate the nurturing and securing of enthusiastic human resources. Thank you for participating in this dialogue.

In 2012, Tokuyama was awarded the Kuruminmark, a symbol that represents excellence inefforts to support child rearing, by Yamaguchi
Prefectural Labor Department of the Ministry of
Health, Labour and Welfare.

Akiko Takahashi

Sei Sai

Ayumi Dodomi

Emi Ushioda

Yasuko Takeda

Assistant Manager, Administration Section,
Tsukuba Research Laboratory
Joined in 1996
A mother of one boy and one girlTokuyama Dental Corporation

Tokuyama Dental Corporation

Joined in 2007
A mother of one boy; reinstated from childcare leave inFebruary 2013

Joined in 2006
Striving toward the launch of new dental materials

Assistant Manager, Specialty Products Development
Department
Joined in 1997
A mother of one girl; reinstated from childcare leave in
April 2012Manager, Technology Strategic Planning Department,
Tokyo Head Office
Joined in 1996
A mother of one boy and one girl; transferred to theTokyo Head Office in April 201311

The “Kurumin” MarkThe Certification for Companies That Support
Next-Generation Parenting

12

The Centennial Vision: Utilizing Chemistry Creatively

Cutting-Edge Technologies That
Contribute to Environmental
Conservation and Human Wellbeing

200

Visible
300

400

UV-C

UV-B

UV-A

200-280

280-320320-400

Tokuyama Creating New
Technologies and Businesses
As it works to create environmental technologies and eco-friendly products, Tokuyama
emphasizes social contributions and environmental impact reduction efforts, even from thedevelopment stage.
Researchers today are under increasingpressure to quickly develop innovative technologies and new materials that meet the rapidly changing needs of society. Our R&D
mission is to contribute to the healthy development of society by delivering such innovative technologies and new materials throughcontinuous inquiry and ceaseless effort.
Focusing on three growth fields, namely,“information and electronics,” “environment
and energy” and “life and healthcare,” we areleveraging the inorganic chemical and crystal
technologies that we have accumulated over
the years to accelerate product development.
As the latest accomplishment of our R&D
activities, we are proceeding with the development of a high-performance deep ultraviolet light emitting diode (DUV-LED).

500

IR
600

What Is Deep Ultraviolet Light?
Constituting a part of the solar spectrum,
ultraviolet (UV) light has a shorter wavelengththan blue light and is well known as being thecause of sunburn and other skin problems.
Deep ultraviolet (DUV) light has an evenshorter wavelength and is not contained in
the solar spectrum. (See the spectrum diagram
shown above.) DUV light also exerts a strong
sterilization ability, destroying the nucleic
acids—DNA and RNA—of germs and viruses.
Since DNA has an absorption peak in the
260nm range, devices generating light in thisrange are the best suited for sterilization
applications. Conventionally, mercury lamps
have been used for such applications, especially in the fields of medical care, water purification and food sanitation, due to theirability to emit DUV light in the 254nm range.
However, the use of mercury lamps poses several problems in terms of environmental
impact, not the least of which is that they
contain mercury, an environmental load substance. They also have a short life of approximately 2,000 hours, and require a highoperating voltage. In recent years, on the backof the growing trend toward mercury-free
products and heightening energy-conservation
requirements, the possibility of DUV-LEDs has
prompted their development as a substitutefor mercury lamps.

700

800
Wavelength (nm)Tokuyama Succeeds in Developing a
Deep Ultraviolet LED
In response, development efforts aimed at creating DUV-LEDs have been pursued all aroundthe world. In order to realize an LED with suchsuperior performance, developers had to overcome two technological challenges: how to
produce high-quality single crystal aluminum
nitride (A N); and how to optimize LED structures that emit DUV light. Since A N is a key
material that enhances the efficiency of DUVlight generation, the quality of A N crystals
had to be improved. Employing its proprietary
crystal growing technology, Tokuyama succeeded in developing a DUV-LED boasting aworld-leading output capacity.
Virus Sterilization Using Deep
Ultraviolet Light

Virus

Entire genetic
informationof viruses(DNA or RNA)

Protein coat

Proteolysis

To Commercialize a Deep Ultraviolet LED
Toru Kinoshita
Assistant Manager, Corporate Development Department

Invented at the beginning of the 20th century,
mercury lamps are a mainstay sterilization
device in a variety of fields, including medicalcare and water purification, making significant
contributions to public hygiene. However, mercury lamps also exert a high environmental impact.
In addition to containing mercury, which is toxic,
these lamps have only a short life while consuming a substantial amount of electricity. In recent
years, calls for the development of convenientand highly efficient light sources for sterilization
applications have been increasing, especiallygiven the increasing threat of highly pathogenic
avian influenzas and noroviruses. Reflecting this,vigorous development activities aimed at creating DUV-LEDs to replace mercury lamps havebeen undertaken all around the world.
To overcome technological problems that
DUV-LED developers previously confronted,
Tokuyama devised an innovative process using
its proprietary hydride vapor phase epitaxy(HVPE) method, thereby succeeding in producing high-quality A N single-crystal substrates
that boast low-defect density and superior
ultraviolet light transmittance. Our prototype
DUV-LED, which has been created on these substrates, is capable of generating wavelengths in
the 260nm range, ideal DUV light for sterilization applications. Upon the verification of theworld-leading output capacity marked by thisprototype, we went on to announce its development to the general public.

The mission of our research team is to contribute to the improvement of public hygiene
and the reduction of environmental impact bycommercializing the DUV-LED and thereby helping people enjoy safer and cleaner living environments. To this end, we are devoting ourselves
to research and development activities aimed atrealizing an LED that has a longer life and also
consumes less electricity.
Comparison of A N Substrates’ Light
Transmittance by Production Method(Thickness: 114µm; Polish: both surfaces)
100

HVPE-A N substrate

80
Transmittance (%)

UV

60

Physical vapor transport(PVT)-A N substrate

40
20
0
200

300

400
500
Wavelength (nm)

600

700

Sterilized

13

14

The Centennial Vision: Remaining Responsive to Society

The Nanyo Plant’s Cement Production Recycling System
Local governments
Incinerated ash

Taking a Recycling Approach That Is
Responsive to Society’s Needs
and Uses Energy Efficiently

Yamaguchi
Eco-tech
CorporationRawmaterial
crusher

Natural resources
Limestone

Preheater

Raw material powder silo

Raw material dryer

Silica stone

Local governments

Outside corporations

Sewage sludge

Outside corporations

Waste plastics

Outside corporations

Slag

Outside corporations

SludgeCoal ashConstruction waste soil

Waste plastics

Waste liquid

In-house

In-house

In-house

Preincineration

Organic sludge

In-house

Coal ash

Organic sludge

Incombustible lime

Rotary kiln

SludgeConstruction waste soil

Natural resources
Coal

Coal
crusher

Clinker silo

Outside corporations

Outside corporations

Waste carbon

Plaster

In-house
Main raw materials

Main energy source

Alternative raw materials

Alternative energy sources

Finishing crusher

Plaster

Cement silo

As a “Mother Factory” of the Tokuyama GroupThe sources of competitiveness of our
Tokuyama Factory are the unparalleled energy
efficiency and superior technologies that wehave nurtured at the frontlines of manufacturing operations. With an eye to responding toenvironmental concerns, the Tokuyama Factoryis solidifying its foundation as the Group’s“Mother Factory,” striving to reduce unit energy consumption while enhancing productivity
and efficiency.
The Nanyo Plant, a cement production
base within the Tokuyama Factory, has beenpromoting the reuse of incombustible lime
from the Company’s soda ash plant as well as
coal ash from the in-house power plant asalternative raw materials for cement production. Also, the Nanyo Plant proactively accepts
a significant volume of waste from local
15

communities and outside corporations, promoting a recycling approach that is responsive
to the needs of society.

Nurturing a Business That Plays a Key Role in theDevelopment of a Recycling-Oriented Society
Naoya Maeda
Manager, Manufacturing Section,
Cement Manufacturing Department

Through a firing process involving extremely
high temperatures, our rotary cement kilns produce clinker, which constitutes an intermediate
product used in cement manufacturing. As thetemperature inside the rotary kilns reaches
1,800 degrees Celsius, the kilns completely burnthe waste used as an energy source, leaving
only ash that is then itself used in cement.
Because of this, these cement kilns have tworemarkable features: they can accept a wide
range of materials as long as they contain main
ingredients of cement; and they generate nosecondary waste, such as burnt residue, unlike
typical incinerators. As a result, our recent
cement manufacturing business is not only producing materials for concrete, it is playing a keyrole in a nascent recycling-oriented society bytreating and changing a variety of waste andby-products into cement.

Looking to the future, continuing to playsuch a role will be increasingly essential for
Tokuyama in terms of social contribution, particularly in light of the ongoing trend of decline indomestic cement demand. My aims as an engineer working in cement production are to develop technologies that enhance the utilization
efficiency of waste and to conduct meticulous
operational management aimed at realizing
optimized production, thereby ensuring steadycement production and waste treatment.
The cement industry is a key industry thatbolsters infrastructure development. As our centennial approaches, we will devote our best
efforts to strengthening the capability of ourcement manufacturing front lines, aiming todevelop this business into a strong foundationthat plays a quiet but significant role supporting
the Company’s operations.

Cement shipment

Aerial view of the Tokuyama Factory

16Responsible Care

*Currently, the JCIA Responsible Care Committee

CSR Activities Centered on RC Activities
RC activities constitute one of core initiatives in Tokuyama’s CSR activities.
A Companywide promotion structure has been established to soundly
operate various management systems. In this way, we continue to improve
our environmental, safety, and quality management systems.
RC Promotion Structure
Under the CSR Promotion Council chaired by the president and consistingof members of the Executive Committee, the Company has established theEnvironmental Measures Committee, Safety Measures Committee andProduct Safety and Quality Assurance Committee as decision-making bodies. Also, the Company has established several subcommittees—such as
the Product Assessment Subcommittee—which provide various assessment

functions. All these committees and subcommittees promote specific initiatives in their respective areas of responsibility.
RC Promotion Structure
CSR Promotion Council
Assessment Function

Decision-Making Function
Environmental Measures Committee

Product Assessment Subcommittee(Labeling Assessment Subcommittee)

Safety Measures Committee

Safety and Environmental
Assessment Subcommittee

Product Safety and Quality
Assurance Committee

RC Research Laboratory(support organization)

Responsible Care Management
Department (Secretariat)

This laboratory checks the safety of chemicals and assesses their environmental
impact using simulations. It also carries
out environmental measurements,
working environment measurements andultra-trace analysis of substances underregulation and chemical pollutants.

This department promotes RC activities
throughout the Group, covering the areasof the environment, safety and quality.

RC Activity Evaluation and Management System
Tokuyama periodically adopts a new medium-term plan in the area of
Responsible Care and determines its policies and targets for each fiscal
year to achieve said plan. Under these policies, the individual departments
create specific plans and engage in their activities. The results of these
activities are assessed at the end of each fiscal year so that the plans forthe following fiscal year will reflect the findings. Tokuyama formulated a
new four-year plan starting in fiscal 2011. Activities under the plan are
now in progress.

Basic Philosophy of Responsible Care
Basic Policy
As a member of the JCIA Responsible
Care Committee, Tokuyama Corporation
carries out Responsible Care activities
that protect the environment andpreserve safety and health throughout
the entire chemical substance life cycle,
from development and manufacturing
to distribution, use, final consumption
and disposal.
Our social mission is to aggressively
tackle and systematically solve environmental issues in particular, which, inturn, will lead to sustainable corporate
and social development. Based on thisrecognition, we promote Environmental
Management, a management policy thatemphasizes the environment, in all ofour business activities, including development, manufacturing and sales.

Action Objectives
1 Promote environmental protection• Implement an ISO 14001-based Environmental Management System and reduce environmental impact

2 Observe the laws and regulations

RC Activity Goals

Environmental Impact Reduction Goals
Medium-Term
Environmental Plan
Environmental Management Plan

Environmental Management Activities

Assessment of Activities

ISO 14001 Environmental
Management System
Safety and Environmental
Assessment System
RC Audit System• Thoroughly implement export management rules on materials under control

3 Promote energy conservation and curb global warming• Achieve top-class unit energy consumption in the industry for each product4 Promote resource recycling and work toward reduction and the proper
management of waste materials• Promote the material recycling and thermal recycling of resources• Work toward achieving a paperless office

5 Promote process safety, disaster prevention and occupational health and safety• Aim for zero accidents and disasters based on the principles of self-responsibility and the self-management of safety• Achieve a comfortable working environment and protect people’s safety and health

6 Ensure strict product safety standards• Offer environmentally friendly products that can be used with safety• Provide proper information on how to use products and what precautions to take7 Deepen the relationship of trust with society• Publicly disclose information on the Company’s activities concerning environmental protection, process safety anddisaster prevention, occupational health and safety, and chemical product safetyassess the risk evaluation and examine compliance with the statutory
requirements from a wide range of perspectives, including the safety of thechemical substances involved, the environmental impact and the effect onhuman health. We also assess the labeling to ensure that the product information in catalogs, manuals on safe handling, safety data sheets (SDSs)*
and other types of labeling contain no deficiencies in relation to the instructions and/or warnings and that there are no inappropriate statements.
* A safety data sheet is a document that deals with the hazard and toxicity of achemical substance. It is prepared to ensure the safe handling of a particular
substance and provides information on the name of the substance, safety measures, the action to be taken in the event of an emergency and so forth.

Environmental Accounting
Environmental Performance

Operation of Management Systems
ISO 14001 Environmental Management System
The Tokuyama Factory and the Kashima Factory have already acquired ISO
14001 certification. ISO 14001 is an international standard for environmental management systems. In line with the Companywide environmental policy, each factory sets out an environmental policy and the specificgoals to be achieved in areas covering environmental impact reduction,energy conservation, waste reduction and resource recycling.
At the Company’s head office, branch offices and research laboratories,
activities are under way based on their respective policies and goals set
out according to the scale of their operations, covering energy conservation, waste reduction, resource recycling and other activities.
ISO 9001 Quality Management System
Tokuyama has also acquired ISO 9001 certification for its quality management system. Since fiscal 2002, this system has been operated as a systemcovering sales, development and all other divisions of the Company.
Occupational Health and Safety Management System
In accordance with the Japan Chemical Industry Association (JCIA) New
Occupational Health and Safety Guidelines, Tokuyama has built and promoted occupational health and safety management systems at individual
factories and offices. In fiscal 2005, the Tokuyama Factory upgraded its
system into a comprehensive safety management system covering various
safety-related activities.

• Observe international rules, domestic laws and regulations and industrial standards• Actively engage in dialogue with the local communities

17

RC Activity Evaluation and Management System(Environmental Preservation)
Incorporate assessment results into goals
and plans for the following fiscal year

What Is Responsible Care?
Responsible Care (RC) refers to the voluntary management activities ofcompanies that manufacture and handle chemical substances to protect
the environment and maintain the safety and health of members of the
public and employees in all processes covering the development, manufacturing, distribution, use, final consumption and disposal of chemical substances. Also, RC activities involve the publication of the results of theactivities and the promotion of dialogues and communication with society.
The RC concept originated in Canada in 1985, and it is now in place in 52
countries around the world. In Japan, the Japan Responsible Care Council(JRCC)* was established in 1995 within the Japan Chemical Industry
Association (JCIA). It had 104 corporate members as of April 2013,
Tokuyama being one of the founding members. We actively promote RC
activities as the basis of our environmental management and CSR activities.

Assessment Systems
Tokuyama has set up several assessment systems in an effort to reduce
environmental and safety risks.
Safety and Environmental Assessment
Prior to installing, expanding or modifying any facility, we conduct safety
and environmental assessments. We check the safety design of equipment,
the safety level of the materials handled, compliance with the laws andregulations and the impact on the environment, thereby ensuring that ourfacilities are safe, easy to operate, easy to maintain, and accident- anddisaster-resistant. The assessments apply to three stages: Basic Plan
Assessment, Design Assessment and Pre-Operational Assessment. At thesestages, assessments are conducted to verify that the facilities have a safety
and environment-oriented design, that they have been built to the design
requirements and that they are ready for operation.
Product Assessment and Labeling Assessment
To ensure product safety, Tokuyama conducts a product safety assessment
at each stage, from research and development to commercialization. We

RC Promotion Structure and Operation of Management
Systems
Auditing Systems
Tokuyama has an auditing system aimed at verifying that individual factories
and offices engage in appropriate activities in line with Companywide policies.
Safety and Environmental Audit
Tokuyama conducts safety and environmental audits on a yearly basis toverify the appropriateness of its accident/disaster prevention measures andmanagement activities in relation to environmental conservation. The
auditing team is headed by the director who chairs the Safety Measures
Committee and the Environmental Measures Committee, and the teamconducts audits of all factories, laboratories and offices, organizations designated for inspection under the High Pressure Gas Safety Act, thePurchasing & Logistics Department and the Health Management Center.
The results of the audits are compiled in reports and distributed to all
departments concerned. They are also presented to the president.
Third-Party Audit
Tokuyama undergoes ISO 9001 and ISO 14001 examinations conducted byaccreditation organizations. The latest examination for maintenance of theISO 9001 certification took place in April 2013. The examination resulted
in two observations (audit findings referred to as “opportunities for
improvement”) and the Company took such steps as the revision of
in-house operating standards in response. Also, the Tokuyama Factory and
the Kashima Factory have undergone examinations for maintenance of theISO 14001 certification in October and December 2012, respectively. As aresult, five observations were made, including a minor nonconformity andfour “opportunities for improvement.” The factories implemented remedial
measures based on these findings by once again disseminating appropriate management procedures throughout the organization.
Internal Audit
Tokuyama conducts internal audits on a regular basis in accordance with
the ISO 9001 and ISO 14001 standards and with the occupational healthand safety management system. The progress of action plans and the status of system operations are audited. If a problem is found, it is notified torelated parties, and corrective actions are instituted.
Education and Training
Employee education related to overall Responsible Care activities is provided for all members within the framework of level-specific group education.
Practical education and training in relation to environmental management, safety management, occupational health and safety, and quality
management are offered as part of actual management activities.
18

Process Safety, Disaster Prevention and Occupational Health and Safety

Environmental Management
The Tokuyama Factory and the Kashima Factory have formulated specificeducation and training plans in accordance with the ISO 14001 environmental manual. They offer education on the importance of environmental
conservation and compliance with relevant laws and regulations to employees and contracted workers alike. The scope of the plans for fiscal 2012
covered approximately 3,800 employees and contracted workers and all
have undergone prescribed education programs. Also, 15 internal auditors
participated in training sessions aimed at enhancing their auditing skills.
Safety Management and Occupational Health and Safety
The Company offers hazard prediction training; hands-on experience training; pre-work hazard prediction activities; safety regulation education;internal special education on electricity, oxygen deficiency, waste incinerators and other areas; foreman education; troubleshooting training; training
on the use of fire prevention and extinguishing systems; evacuation drills;
general disaster drills; traffic safety education; and training on aid activities
following external accidents and disaster prevention.
Quality Management
Each workplace provides its own ISO-related instruction. Twenty-five key
personnel at different workplaces have completed the ISO 9001 internal
auditor development course.
Business Continuity Initiatives and BCPs
Business Continuity Plans (BCPs) refer to action plans prepared by enterprises with the aim of mitigating the impact of disasters, accidents and otheremergency events on their core operations and ensuring the earliest recovery and resumption of operations if these events caused their disruption.

The Tokuyama Group has formulated a BCP that postulates anear-future scenario in which a major earthquake has occurred directly
below the Tokyo metropolitan area. The Group is also drawing up BCPs tocounter such events as a major earthquake along the Nankai trough andnew influenza pandemics.
As a part of these initiatives, in fiscal 2012 the Group implemented
an emergency first response drill aimed at testing its BCP, assuming thatthe abovementioned earthquake hit the Tokyo metropolitan area during
working hours.
The drill involved the Tokuyama Factory, the Kashima Factory, theTsukuba Research Laboratory and 11 Group companies located in thearea. We rehearsed the launch of the Crisis Countermeasure Headquarters
at the Tokyo Head Office, which simultaneously accompanies the establishment of the Tokuyama Support Headquarters at the Tokuyama Factory, theconfirmation of the safety of officers and employees, the collection andsharing of information on the damage sustained, the distribution of aid
supplies and information disclosure using the Company’s website.

The Crisis Countermeasure Headquarters

Distributing aid supplies

launched at the Tokyo Head Office:Discussing emergency response with
the Tokuyama Support Headquarters
through teleconference

Fiscal 2012 RC Activities: Priority Issues and Results
Category

Priority Issues

Results

Management• Review by top management• CSR Promotion Council• Safety, environment and quality audit

Environmental conservation• Environmental impact reduction• Energy conservation• Waste recycling• Reduction in environmental impact (air, water quality, etc.)• Reduction in the emission of PRTR substances andhazardous air pollutants• Decrease in unit energy consumption• Promotion of zero-emission activities• Steady operation of the environmental management system• Reduction in the emission of SOx and NOx• Ongoing efforts aimed at reducing soot emissions• Increase in the emission of PRTR substances• Promotion of energy conservation
Reduction of 21.8% in unit energy consumption compared with fiscal 1990 level• Facilitation of the use of waste as raw materials and fuel for cement production• Maintenance of zero-emission rate at 99.9%

Process safety

Occupational health and safety
Chemical product safety• Zero accidents• Promotion of risk management• Promotion of independent safety management• Proper operation of the safety management system• All-inclusive safety and disaster prevention activities• Implementation of various types of training and drills• Zero disasters• Efforts to maintain zero-disaster status• Promotion of risk assessment• Securing product safety• Implementation of product assessment and labeling assessment• Improvement of SDSs
• Participation in JIPS*

Cultivation of a relationship of trust • Participation in community activities• Participation in community volunteer activities
with society and local communities • Harmonious coexistence with society and local communities • Holding of RC Community Dialogues (regional, organized by each factory)• Provision of factory tours
Promotion of RC activities at Group • Expansion of RC activities
companies• Safety, quality and environmental audits• Encouragement of ISO certification acquisition• Sharing of RC-related information* The Japan Initiative of Product Stewardship: An initiative spearheaded by JCIA with the aim of facilitating the independent management of chemicals. Participating companies andother related enterprises and organizations that handle chemicals collect and analyze information on the hazardous properties of chemical substances and products to carry out risk
assessment based on comparisons between exposure when chemicals are used and the no-effect level (the level at which there is no effect), taking into account the use applicationsof these substances and products. The risk assessment results are utilized for appropriate chemical substance management aimed at ensuring workers’ occupational safety, protecting consumers and reducing environmental impact. The outcome of such management activities is disclosed to the supply chain and to the general public.

19

Tokuyama believes that safety is an essential part of business activities
and that ensuring safety is the first step in achieving coexistence withsociety. In taking this stance on safety, Tokuyama thoroughly conducts
process safety and disaster prevention activities as well as occupational
health and safety efforts. By doing so, the Company endeavors to prevent accidents and disasters while striving to provide a favorable working environment.
Commitment to Safety and Disaster Prevention
All-Inclusive Safety and Disaster Prevention Activities
Tokuyama has three safety principles. According to these principles, safety
is, in the first instance, a social responsibility to be met as a corporate
citizen. Second, safety is given priority over all other business activities;
and third, security can be achieved by the fact that all staff members havea responsible attitude and engage in responsible activities.
In line with these principles, we make painstaking efforts to ensure thesafety of facilities and processes. Specifically, we continually strive toimprove our level of security control, identify the sources of hazards andenrich our security education and training. Accordingly, we promote such
efforts as safety patrol operations, Kiken Yochi (KY) hazard prediction activities, Hiyari Hatto accident prevention activities, the five-S activities aimed
at ensuring the five-S’s that refer to Seiri (tidy), Seiton (organized), Seiketsu(clean), Seiso (cleaning) and Shitsuke (disciplined) at the workplace, as wellas the practice of pointing and calling a name out loud. In addition tothese basic activities, we operate and continuously improve risk management and crisis management systems.
Disaster Drills
Tokuyama conducts a variety of disaster drills, including general disaster
drills in tandem with the Shunan City Government.
Efforts to Maintain Safety Performance and Stay Accident-Free
The Tokuyama Factory maintained its zero-disaster record in fiscal 2012 forthe fifth consecutive year. The Kashima Factory and the Tsukuba ResearchLaboratory also saw no disasters in fiscal 2012. Moreover, we recorded
no on-the-job accidents affecting Tokuyama employees. However, theTokuyama Factory experienced four accidents involving contractors’
employees. One of these accidents forced a worker to take a leaveof absence, while the other three required no time off to be taken.
Looking ahead, we will continue our efforts to achieve zero-accident andzero-disaster status.

Promoting Mental and Physical HealthWe implement such steps as taking measurements at worksites where
specified chemical substances and organic solvents are handled. Our
industrial doctor inspects these worksites and we take other steps toimprove facilities and working methods.
To combat lifestyle related diseases, we provided health guidance
through face-to-face counseling based on the results of health checkups
and issued written notifications to encourage those who failed to undergoa recommended complete checkup to do so. Consequently, the ratio of
those who underwent such recommended checkups significantly improved
to 85.5% from 69.3% in the previous fiscal year. Although Tokuyama has
seen an upward trend in employee absenteeism in recent years, the rate
for fiscal 2012 decreased from 5.8‰ to 5.5‰ on a Companywide basis.
We are also working to strengthen our structure for assisting in thehealth management of expatriates through such steps as dispatching an
industrial doctor to our locations overseas (Malaysia and Shanghai).
Trend in the Accident Frequency Rate*1
2.5

1.85 1.95

1.90 1.83
1.75

2.0

1.5

1.61

0.72

0.72

0.88

0.84

1.0

0.67

0.5

0.27

0.00
04

0.88 0.85

0.26 0.26
0.00

05

06

07

All industries

0.25
0.00

0.00
08

09

10

11

12

Chemical industries(FY)

TokuyamaT*1 The accident frequency rate refers to the number of workers forced into absence
through industrial accidents per one million cumulative working hours. This reflects
the frequency at which industrial accidents occur.

Trend in the Accident Severity Rate*2
0.15

0.12

0.13

0.12 0.12

0.12
0.11

0.11
0.10

0.10
0.10

0.077

0.07

0.10

0.09 0.09

0.06
0.04

0.04

0.04

0.05

0.022 0.020

Commitment to Occupational Health and Safety
Strengthening the Safety Management System
With the aim of completely removing potential risk factors, each factoryand laboratory adopted Safety Management Systems and is continuously
improving these systems through risk assessments of work practices, facilities and processes. Also, discussions are now under way to formulate
improved systems for the measurement of the effects brought by changes
in safety management methods.
Helping Contractors Promote Safety and Health Activities
By holding active dialogues on safety, Tokuyama and its contractors share
their wisdom and eliminate potential risks associated with work in thefield, thereby collaboratively promoting safety management activities. In
these ways, Tokuyama is striving to safeguard all personnel working at its
plants from accidents and disasters.

1.62 1.59

1.10
0.88 0.90

0.0

1.62

0.00000.00

04

0.000 0.000
0506

All industries

07

0.005

08

09

0.015
0.000

0.000
10

11

Chemical industries

12

(FY)

TokuyamaT*2 The accident severity rate refers to the number of lost work days per one thousand
cumulative working hours. This reflects the magnitude of industrial accidents thathave taken place.

Fiscal 2012 Investment in Process Safety, Disaster Prevention
Amount(millions of yen)and Occupational Health and Safety Countermeasures

Ratio (%)

Countermeasures against explosions, fire and leakage

386

60

Countermeasures to improve occupational safety andwork environment

236

37

Countermeasures against earthquakes and othernatural disasters

17

3

Total

639

100

20

Promoting Environmental Management: Tokuyama’s Environmental Management

Promoting Environmental Management

Economic Benefits in Fiscal 2012

Performance for Fiscal 2012
Protecting the Global Environment
One of our most important corporate social
responsibilities is to actively protect the global
environment. Tokuyama practices environmental management with an emphasis onenvironmental perspectives in all of its business activities.

Environmental

Flow of Materials in Business Activities(Unit: 1,000 metric tons)

OUTPUT

Production Activity
Tokuyama

Waste and by-products

Carbon dioxide (CO2)

1,780

5,800

Fuel

(44,200 thousand GJ)

20

Pollution Control

Raw materials

Substances withenvironmental impact

41,300

Products

Items

Atmosphere

Resource Recycling

Management Activity Costs

Rating: 쎻 : Satisfied; ҂: Not satisfied

Fiscal 2012 Result

RatingFiscal 2013 Target

Soot and Dust (Compared to the average
emission from fiscal 2008 to 2010)

±0%

+27%

҂

COD (Compared to the fiscal 2010)

±0%

−5%

쎻

±0%
±0%

Nitrogen (Compared to the fiscal 2010)

±0%

−15%

Phosphorus (Compared to the average
emission from fiscal 2008 to 2010)

±0%

−9%

쎻

±0%

PRTR

PRTR (Compared to the average emission
from fiscal 2008 to 2010)

±0%

+14%

҂

−14%

EnergyConservation

Unit Energy Consumption Index(Compared to the fiscal 1990)

24% lower than thefiscal 1990 level

22% lower than thefiscal 1990 level҂

24% lower than the fiscal 1990 level

Rate of Effective Waste Utilization

Maintain at 94%

94.8%

쎻

Maintain at 94%

Maintain at 99.9%

99.9%

쎻

Maintain at 99.9%

Global Environment
RecyclingConservation

Zero Emission Zero-Emission Rate

72

298

Gains on Reduction in Waste Disposal
Costs through Waste Recycling

283

727

Gains on Reduction in Raw Material andFuel Costs through Waste Recycling

284

512

Costs
(¥ million)

Replacement of electric
dust collectors and neutralizing facilities, etc.

861

4,776

Improvement of facilities
for the effective utilizationof coal

88

680

Efficient use of resources

235

990

0

2

20

271

Environmental analysis
equipment, etc.

00Social Activity Costs

Greenery development,
production of CSR report1

68

Costs for Environmental Damage

Imposition, managementof a former mining site

0

158

1,206

6,945

Total

1,714

Commitment to the Preventionof Global Warming
Prevention of global warming is key to the future of the humanrace. Tokuyama is making steady energy conservation achievements in its business activities while supporting energy conservation in employee households.

Promotion of Energy Conservation
Tokuyama consumes a huge amount of energy in manufacturing its coreproducts, such as caustic soda, cement and polycrystalline silicon. Carbon
dioxide, one of the greenhouse gases, is generated chiefly by burning fossil
fuels and also by the decarboxylation of limestone used as a raw material
in cement production.
Aware of the high priority of preventing global warming, the Company
is conducting energy conservation activities to reduce carbon dioxide emissions. The Tokuyama Factory is responsible for more than 99% of theCompany’s energy consumption. Taking this fact into consideration, in fiscal
2012 the Tokuyama Factory undertook the switchover from coal to alternative fuels as well as the acceleration of energy-saving activities. However,the unit energy consumption index of the Tokuyama Factory has been
reduced no more than 22% (with unit energy consumption in fiscal 1990
set as 0) due to a decrease in the factory’s overall facility utilization rate.
Unit Energy Consumption Index* (Tokuyama Factory)
Reduction rate (%)

00Tokuyama has set atarget for fiscal 2013at 24% lower than thefiscal 1990 level.

-5

-10

Emissions target reset to 200 metric tons per
year, about 30% higher than the fiscal 2012target, to reflect the expected facility utilization rate and individual facility characteristics

쎻

Water Quality

AmountInvested(¥ million)

Research and Development Costs

Coolant water and other types of effluent

Fiscal 2012 Target

Major Activities

Upstream and Downstream Costs

24,9005,300

Fiscal 2012 Results of Environmental Preservation Activities (Tokuyama Factory)Category

Costs in the
GlobalBusiness
Environmental
Areas
Conservation

Process effluent

Industrial water

Waste Reduction

Environmental Costs
Of Tokuyama’s total environmental investment during fiscal 2012, investments related to pollution control, resource recycling and global environmental conservation accounted for 71%, 19% and 7%, respectively. At thesame time, investments related to management activities accounted for
2%. Costs related to pollution control, resource recycling and global environmental conservation accounted for 69%, 14% and 10%, respectively,of the Company’s total environmental costs for the same period.
Major environmental investments in fiscal 2012 included the replacement and reinforcement of neutralizing facilities; the construction of storage facilities for polluted soil accepted from outside corporations, whichaccompanied the installation of strengthened soil contamination countermeasures; and other steps to promote waste treatment.
Environmental Preservation Costs

10

177

Gains on Sale of Valuable Waste

Total

Category

5,650

Environmental
Impact Reduction

To accurately grasp and analyze the amounts of investments andcosts associated with environmental preservation activities andimprove the effectiveness of environmental investment, Tokuyama
has implemented environmental accounting since fiscal 2000.

Waste (incinerated and landfill)

2,150

Economic Benefit(¥ million)

Gains on Reduction in Energy Consumption

Tokuyama’s Environmental Performance for Fiscal 2012
Tokuyama strives to obtain accurate data on the input and output of materials and substances in its business activities and reduce the environmental impact of these activities to meet its environmental targets.
Among its fiscal 2012 targets for environment impact reduction, the Company failed to achieve its
soot and dust-emission reduction target due to the increased utilization of facilities subject to environmental regulations. We also failed to meet targets for the reduction of PRTR substance emissions andunit energy consumption index because of a decline in the Tokuyama Factory’s overall facility utilization
rate. On the other hand, we achieved our waste reduction target by pursuing proactive recycling efforts
internally and externally.

INPUT

Material Benefit(1,000 metric tons)

Category

Accounting

Economic Benefits
To analyze the economic benefits, we calculate nothing but the real benefitsof gains on reduction in energy consumption, gains on sale of valuable waste,
gains on reduction in waste disposal costs through waste recycling, andgains on reduction in raw material and fuel costs through waste recycling.
In fiscal 2012, Tokuyama achieved economic benefits totaling approximately ¥1.7 billion, up about ¥30 million from fiscal 2011.

-16.4
-15

-25

90

07

-21.8

-22.4

-18.6

-20

08

09

-24.6

-24.2

10

11

-24.0
12

13
(Target)(FY)* The unit energy consumption index is calculated using a method
recommended by the Japan Chemical Industry Association (JCIA).

In fiscal 2012, Tokuyama met its targets for water pollutant reductions (COD, nitrogen and phosphorus), recycling and zero emissions.

21

22

Tokuyama Science Foundation

Flow of Industrial Waste Treatment

Reducing Waste and

The Tokuyama Science Foundation was established on September 19, 1988, to commemorate
the 70th anniversary of Tokuyama’s founding.
The mission of the foundation is to offer financial support for research into new materials andrelated subjects in science and technology, andto raise awareness of science and technology,
thereby enabling socioeconomic development
and the improvement of people’s lives.
The foundation has to date offered a cumulative total of ¥853 million for 753 projects.
Many who enjoyed support from the foundation
as youths are today leading professors at universities nationwide.

Waste Generated

Promoting Recycling

382
Incineration (internal)

18.9

As a result of its exhaustive efforts to reduce and recycle waste,
Tokuyama maintained the effective waste utilization rate at 94%
and the zero-emission rate at 99.9% in fiscal 2012.

Internal Recycling

337
Landfill (internal)

Inside theCompany
Outside theCompany

0.3
External Recycling

25.0* Figures are for fiscal 2012 and in units of 1,000 metric tons.

337(88.2%)
Effective Utilization Rate

94.7%
Zero-Emission Rate

99.9%

Landfill Volume (internal and external)
Total Waste Generation

Landfill volume

40,000

99.9

×100

×100

94.1

93.5

93.5

94.4

94.7
80

60

30,00036,26040

20,000

20

90

480

440

430

500

330

08

09

10

11

12

Effective utilization rate

(FY)

The foundation provides financial support for the operationsof international conferences to enable researchers to
exchange information with peers overseas.

Financial support for international exchange:¥72 million to 274 recipients

Grants for campaigns on science and technology:¥51 million to 68 projects

The foundation subsidizes the participation of young researchers aged 45 or younger at universities and research institutions in Japan at overseas meetings. After returning to Japan,
the recipients are required to submit reports on the results.

The foundation backs campaigns that present the excitement
and wonders of science and technology to children. The
Chugoku/Shikoku Branch of the Chemical Society of Japan
plays a central role in organizing a series of exhibitions titled“An Exciting World of Chemistry” in the summer vacation season. In Yamaguchi Prefecture, there are “invention clubs” forboys and girls operating in seven cities and towns.

All the recipients of research grants in fiscal 2011

Cumulative Total of Grants and Financial Support(¥ million)

1,000
800
600
400
200

0

Zero-emission rate

Management and Treatment of PCB Waste
The Tokuyama Group has 78 transformers and capacitors containing polychlorinated biphenyl (PCB).* The Group has already stopped using them. In
compliance with the Special Measures Law for the Proper Treatment of
Polychlorinated Biphenyl Waste, they are retained and managed in an
appropriate manner. In accordance with the plan of the Japanese government, wide-area PCB treatment facilities are being constructed at various
locations in Japan, and some of these facilities have started operation.
Taking advantage of the early registration program, the Tokuyama Groupfinished its registration to the Japan Environmental Safety Corporation(JESCO) in December 2005 and commenced disposal in fiscal 2009. In
June 2013, the Tokuyama Factory began to transfer PCB waste that it hasretained to the abovementioned treatment facility, starting full-scaledisposal of such waste.
* PCB is an organic chlorinated compound that emits dioxins when burned at a
low temperature. Chemically stable and excelling in thermal resistance, chemical
resistance, insulation and other electric characteristics, it was formerly used inmany different electric products, including transformers and capacitors.
However, it has been banned from production or utilization since 1972 becauseof its hazardousness to humans. Transformers, capacitors and other PCBcontaining products that have already been distributed have to be retained atbusiness establishments.

23

The foundation offers research grants to young researchers
aged 45 or younger at universities and research institutions inJapan. After the financial support period, a research presentation meeting takes place with the participation of all recipients.

(%)

76.9

쐽 Landfill volume

Internal Recycling(into materials and fuel for reuse)Zero-Emission Rate (%) = 1 —

99.9

100

82.4

0

Total Waste
Generation
382

Total Waste Generation

99.9

Effective utilization rate/Zero-emission rate

0.3
(0.1%)

Recycling Volume (internal and external)

99.9

50,00010,000Landfill

Effective Utilization Rate (%) =99.9(metric tons)

Financial support for international symposia:¥21 million to 47 projects

Research grants: ¥709 million to 364 recipients

Landfill Volume, Zero-Emission Rate and Effective Utilization Rate

Incineration

25.0(6.5%)

Incineration (external)

Landfill (external)(Unit: 1,000 metric tons)
19.7(5.2%)

26.1

0.8

Breakdown of Industrial Waste by Treatment for Fiscal 2012

External Recycling

Waste Generated¥853million

3’12 Ehime Chemistry Show (the Exciting World of Chemistry)

0

88

37

73

109

89 90 91

143

180

215

250

92 93 94 95

283 31396 97

404
343 37498 99

00

440 474

01 02

515

550 585

03 04

620

05 06

656

704

07 08

741

09

777

10

815

11

853

12 (FY)

Editorial Policy
Editorial Policy• The CSR Report and Corporate Profile 2013 has been compiled with the aimof providing our stakeholders with a comprehensive picture of our CSR initiatives and business activities in an easily understood format. This integrated
report consists of a print edition and a web edition in PDF format. Please also
visit our website* to see the web edition for more detailed information, especially numerical data, and other articles that could not be featured in the print
edition because of space limitations.
*www.tokuyama.co.jp/eng/csr/report/• As with the 2012 edition, Tokuyama asked Ms. Eriko Nashioka of the Institutefor Environmental Management Accounting to offer independent commentson this integrated report. The purpose of the independent comments is tocontinuously seek feedback and ratings that help the Company to fulfill its
social responsibility. Details of Ms. Nashioka’s comments are available on
page 25 of this document.
• This integrated report has been prepared based on the Environmental Reporting
Guidelines (Fiscal 2007 edition) published by the Ministry of the Environment.
For inquiries, please contact:
Corporate Social Responsibility Division
Kasumigaseki Common Gate West Tower, 2-1, Kasumigaseki 3-chome, Chiyoda-ku,
Tokyo 100-8983, Japan
Tel: +81-3-6205-4835 Fax: +81-3-6205-4882

Scope of the Report
Period: All performance data is for fiscal 2012, from April 1, 2012 to March 31,
2013. Certain activities undertaken after April 1, 2013 are included.
Companies: Tokuyama Corporation (Environmental performance data is for the
Tokuyama Factory and the Kashima Factory.); certain environmental performance data includes total values for 11 major production
companies within the Tokuyama Group (see the web edition in
PDF format).
Region: Activities in Japan (including some overseas Group companies)
Date of issue: November 2013
The Scope of Reporting Covered by Print and Web Editions(High)

Importance for stakeholders

Waste Management
In fiscal 2012, Tokuyama generated 382 thousand metric tons of waste.
The Company actively recycled this waste internally and externally, mainly
reusing it as raw materials and fuel for cement production at the
Tokuyama Factory. Packing materials, pallets and other wood waste werecrushed into woodchips so that they could be effectively used as fuel at
power plants. As we worked diligently to recycle waste into raw materials
for cement, we kept on target, maintaining an effective waste utilization
rate of 94%. We stepped up our activities for reusing and reducing waste
and, accordingly, maintained our high landfill zero-emission rate at 99.9%.

0

Cumulative total financial support
from fiscal 1988 to fiscal 2012:

Featured in the print edition

Featured in the web edition posted on Tokuyama’s website(High)

Importance for Tokuyama

24Third-Party Comments

A Review of Tokuyama’s CSR Report andCorporate Profile 2013

Eriko Nashioka
Representative Director of the Institute forEnvironmental Management Accounting,
Certified Public Accountant and Certified Tax
Accountant
Part-time lecturer in environmental accounting
and environmental auditing for the Faculty ofCommerce of Doshisha University

A Flexible Approach to Achieving the Centennial Vision
As it looks forward to marking the centennial of its founding in 2018,
Tokuyama has been promoting business activities under the three growthstrategies “Growing,” “Creating” and “Integrating” established in 2011.
Tokuyama went on to add “Diversifying” to this list in 2013, a fourth strategy
that bolsters the other three, aimed at facilitating the Company’s growth.
I find it highly praiseworthy that Tokuyama has clearly stated its intention
to place the utmost emphasis on human resources in order to achievebusiness expansion. Because Tokuyama is willing to take a flexible
approach to achieving its Centennial Vision, I have growing expectations
as to what Tokuyama will look like when it celebrates the centennial anniversary five years from now.
Human Resources as Business Foundation
The new, fourth strategy, “Diversifying,” is based on Tokuyama’s recognition that its efforts to nurture human resources and assist in their development will bolster its business foundation. To showcase initiatives under thisstrategy, the special features of this report cover the nurturing of humanresources in Malaysia and a dialogue among female employees in Japan.
These articles communicate the status of Tokuyama’s personnel administration based on a personnel system designed to treat all employees withThe Tokuyama Group at a Glance

respect regardless their race or gender. As I read the articles, I came tounderstand that “Diversifying,” Tokuyama’s fourth strategy aimed at vitalizing its human resources, is not mere sloganeering but an actual practicethat is yielding actual achievements.
Every year since it began factory construction in Malaysia, Tokuyama
has reported on the exchange of personnel between Japan and Malaysia
and the nurturing of human resources. It has been pleasing to see that
staff members from both countries are gaining greater mutual understanding, which, in turn, has helped Japanese staff’s painstaking efforts to train
local employees. Anticipating the commencement of the first plant’s operations in September 2013, I expect Tokuyama’s human resources to achieve
success in Malaysia.
Also, the dialogue among the female employees presents examples ofworking styles suited to female researchers. I took this dialogue as a demonstration of Tokuyama’s efforts to address social issues and a management approach that puts emphasis on human resources. Japan has been
facing population decline in recent years and it was reassuring to learn
that Tokuyama is promptly responding to this trend through the provisionof workplaces that welcome diverse human resources.
Integration of CSR Report and Corporate Profile
In 2013, Tokuyama combined its CSR Report and Corporate Profile while
separately preparing print and web editions, implementing reforms in
information disclosure. In light of the promotion of CSR-oriented corporate
management, it was a good idea to integrate the CSR Report andCorporate Profile. While this integration made some data available only on
Tokuyama’s website, the print edition became easier to read as it is able toplace greater focus on key performance indicators (KPIs), providing a snapshot of the Company’s operating status rather than in-depth detail.
However, the presentation of the KPIs is somewhat disorganized, and I
expect that the Company will be looking to incorporate the opinions ofstakeholders in order to determine which KPIs to track and disclose. I hopethat future efforts will help facilitate stakeholders’ understanding of thestatus of Tokuyama’s initiatives as it approaches its centennial and inspirethem to support the Company as it strives to achieve the Centennial Vision.

Company Outline
Company name: Tokuyama Corporation
Location: (Tokyo Head Office)Kasumigaseki Common Gate West Tower, 2-1, Kasumigaseki 3-chome, Chiyoda-ku, Tokyo
100-8983, Japan
Tel: +81-3-6205-4800 Fax: +81-3-6205-4886(Tokuyama Factory)
1-1, Mikage-cho, Shunan-shi, Yamaguchi 745-8648, Japan (Registered address)
Tel: +81-834-34-2000 Fax: +81-834-33-3790(Other facilities in Japan)
Kashima Factory, Tsukuba Research Laboratory, Osaka Branch, Takamatsu Branch,
Hiroshima Branch, Fukuoka Branch, Sendai Office and Nagoya Office
President: Kazuhisa Kogo
Established: February 16, 1918
Capital: ¥53,458 million (as of March 31, 2013)
Number of employees: 5,651 (consolidated basis; including 1,164 working overseas);
2,122 (non-consolidated basis) (as of March 31, 2013)
Number of Group companies: 84 (as of March 31, 2013)
Main businesses: Manufacture and sale of the following chemicals and products
Chemicals: Soda ash, chlor-alkali, vinyl chloride and new organic chemicals
Specialty Products: Polycrystalline silicon, fumed silica, high-purity chemicals for electronics
manufacturing and aluminum nitride
Cement: Cement, recycling and environment-related businessLife & Amenity: Fine chemicals, microporous films, synthetic resins, ion exchange membranes
and dental materials
Securities code: 4043 (First Section of the Tokyo Stock Exchange)

Financial Highlights
Net Sales:(¥ billion)

Non-consolidated

350
300

300.9

Consolidated

289.7
282.3

273.1

258.6

250
202.6

200

187.9

197.7

185.0
164.2

150
100
50
0
(FY)

08

09

10

11

12

Sales Breakdown by Segment (Fiscal 2012):
Others¥40.1billion(13.8%)
Advanced
Components¥51.0 billion(17.5%)

Chemicals

Total¥258.6¥77.3billion(26.6%)

billion*Specialty Products

Cement¥69.9 billion¥52.8 billion(18.1%)(24.0%)* Segment’s figures include inter-segment sales.

In Response to Third-Party Comments
Our efforts to nurture globally capable human resources featured in the CSR Report 2012 were highly evaluated, and as wecompiled this latest report, we wished to retain this emphasis by introducing the views of employees actively working in
Malaysia. We hope readers were able to see that a new corporate culture is being created through cross-cultural exchange.
Also, to facilitate readers’ understanding of “human resource-based management,” a priority issue with us, the reportpresents a dialogue featuring female researchers. In addition, we are glad to learn that the integration of the CSR Report
and Corporate Profile and the issuance of a web edition featuring detailed data have been favorably evaluated by Ms.
Nashioka for their aim of improving information disclosure. Her words of encouragement are appreciated by the staff who
spearheaded the preparation of this report.
In fiscal 2012, Tokuyama Corporation experienced its hardest ever year in terms of performance. In response, Tokuyama formulated plans toimprove profitability and is rallying its entire strength to implement them. However, our goal of achieving the Centennial Vision remains unchanged,
despite the severe operating conditions. Based upon Ms. Nashioka’s suggestion, we will devise ways to provide stakeholders with more quantitative
information on the progress of our efforts toward the Centennial Vision. At the same time, we will strive to prepare a more reader-friendly CSR Report
and Corporate Profile.
Masao Fukuoka

쎲 Tokuyama’s main locations overseas“Tokuyama’s Manufacturing Roots”
In 1918, Tokuyama Corporation (Nihon Soda Kogyo Co., Ltd. at thattime) was established in Tokuyama-cho (today’s Shunan City), Yamaguchi
Prefecture, to undertake the domestic production of soda ash—a basic
and essential material for the development of Japanese industries. Whileretaining its headquarters in its place of origin, Tokuyama has since
entered the fields of cement, petrochemicals and electronic materials.
Today, the scope of its Group operations extends to medical care andenvironmental businesses and is expanding globally.

A photo of the Company’s soda ash plant (1918)

Executive Officer, General Manager of the Corporate Social Responsibility Division

25

26