TOSHIBA PLANT SYSTEMS &SERVICES CORPORATIONCSR Report 2019

Toshiba Plant Systems & Services GroupManagement Philosophy Framework
Contents

Commitment

Committed to the Future of
Humanity and the Earth

The Toshiba Plant Systems & Services Group

commits to being a corporate group that creates
abundant value and contributes to the lives andcultures of people around the world through ourpower, industrial and social infrastructurebusinesses, based on respect for human rights.

Management Vision

Excellent Company capable of ﬂexibly responding in the Market Environment

Standards of Conduct

Toshiba Plant Systems & Services Group places top priority on life, safety andlaw compliance. At the same time, we will act to build bonds of trust withsociety, including our customers and shareholders.

Business Management (Regulations)

１Management Philosophy Framework

５

Top Message

９

Toshiba Plant Systems & Services Group‌
Feature:— Active Throughout the World

３

７

11

Plant Systems & Services Group’s Value Creation‌Toshiba
Process‌FY2019 Medium-Term Management Plan
(FY2019—FY2021)

Plant Systems & Services Group’s Business‌
Toshiba
Domains

13

CSR Management

17

Environment
Environment/Community Involvement and Development

15

24
33
37
38

FY2018 CSR Activities and FY2019 Issues and Goals

Social‌Human Rights/Labor Practices/Fair Operating Practices/
Consumer Issues
Governance
Organizational Governance

Company Data/Network

Highlights of Consolidated Financial Results

Editing Policy

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

Reporting period

This report generally covers the period from April 2018 through March 2019, butalso includes information on activities prior to and after this period.

Organizations covered in this report

This report covers certain group companies with a focus on Toshiba Plant
Systems & Services Corporation.

Expected timing of issuance of next report
July 2020

Reference guidelines

ISO 26000:2010 Guidance on Social Responsibility
Ministry of Economy, Trade and Industry’s “Guidance for Collaborative Value
Creation”

1

2Toshiba Plant Systems & Services
Group’s Value Creation Process
Aspiring to be “Excellent
responding in the

Input

Business

Our Strengths

Social Issues
Further
improvingsocialinfrastructure
Enhancing
cost
competitivenessResponding
to climatechangeCreating
healthy andpositive
workplaces

Cultivatedknow-how
Global businessdevelopment
Stable BCM
management

FY2019 Medium-Term
BasicStrategies

Personnel training
Capital investment
Financing activity
Communication withstakeholders

・Pursuing innovation through・Promoting CSR-oriented

Promoting EPC
Business

Business
Domains

Sales

Order

E

Engineering

Planning
Basic engineering
Detailed engineering

Power Systems
DivisionFoundation for Supporting Businesses

Ｅｎｖｉｒｏｎｍｅｎｔ
ＳｏｃｉａｌＧｏｖｅｒｎａｎｃｅ*BCM (Balanced CTQ Management): A methodology for management maintaining a balance between financial and other business conditions as well as management
quality to realize a company’s management vision.
CTQ (Critical to Quality) refers to the most important management-related issues.

3and its group companies (collectively, the “Group”), “Excellent Company capable of flexibly
responding in the Market Environment,” we conduct our business activities.

Through our business activities we provide services, products, and systems to solve the various
challenges facing society. By doing so, we aim to achieve sustainable growth while creating value
for society as well as customers and other stakeholders.

Company capable of ﬂexibly
Market Environment”

ModelManagement Plan

Output(FY2019—FY2021)

steadily achieve strong earnings

BCM* management

Power plants

management

Water and sewage facilities

Our Management Resources

Research anddevelopment

・Promoting businesses that

With the management vision of Toshiba Plant Systems & Services Corporation (the “Company”)

Procurement

P

Construction &Commissioning

C

Delivery

Procurement

Construction
Trial operation

Completion
DeliveryInfrastructure andIndustrial Systems Division

Environmental Activities ▶ P17
Social Activities ▶ P24

Organizational Governance ▶ P33

Manufacturing plants

Clean energy power
generation facilities

Transportation systems

Substations, transmission anddistribution facilities

4

OutcomeValue
Creation
Building secure andsafe social infrastructure

Developing local communities
A company withsociety’s complete trust

Increasing shareholder value
Increasing employee
motivation

Reducing environmental
impactCommitment
to Solving
Social Issues

Top Message

We aim for strong earnings andExcellent Company capable of flexibly

sustainable growth to become an
responding in the Market Environment.
Record high earnings andundertaking new businesses basedon the new management vision

I am Koichi Harazono, President and Chief Executive Officer, Representative

Director. I joined Toshiba Corporation in 1981, mainly worked in the sales
division in the energy and social infrastructure fields, and managed theTransmission & Distribution Systems Division. I joined Toshiba Plant Systems &Services Corporation in 2018 and have been in charge of the Corporate Planning
Division. I realize that I was able to discover the Group’s strengths andchallenges.

We intend to work toward reinforcing our business foundation and realize theimprovement of our corporate value with an eye toward the market
environment, which will rapidly change even more in the future. I look forward
to your continued guidance and encouragement.

President and Chief Executive Officer,
Representative Director
5

Koichi Harazono

governance system, promoted safety management
activities with the goal of zero accidents, but also
continued to maintain and improve quality, reduce
the environmental impact and contribute to society.
Additionally, regarding “workstyle reform,” which
can be called a recent challenge, we believe that wemust pursue stable growth by increasing
productivity with technological innovation, andutilize a combination of personnel development
and revitalization.
From the point of view of management, it isrecognized that the way one thinks about SDGs isimportant. This is because the goals and methods
to create a sustainable society are thoroughly
defined and become a part of the management
policy. We furthermore promote the Company’sbusiness operations in a manner that involves
identifying which SDGs such operations align with,thereby comprehensibly conveying the notion thatour business operations play a favorable role interms of the planet on which we live. We find thatsuch efforts are greatly advantageous.
When it comes to the Company’s governancepractices, although we will continue to operate
based on the existing governance framework, wemust also keep a close eye on developments in ourworld amid a scenario where today’s mass media
and other interests have been calling boards of
directors of listed companies into question.  
Meanwhile, our global operations also make itnecessar y for the Company to place focus on
enhancing governance of our overseas affiliates.

In FY2018, the Group posted consolidated net
sales of ¥244.2 billion and ordinary income of ¥22.3
billion, both of which were record highs. Businessresults domestically and abroad were generally
strong, with especially favorable results related tosolar photovoltaic power generation plants andsemiconductors, and with construction of generalindustrial factories being in full swing.
We changed our management vision from“Excellent Company continuing profitable andsustainable growth” to “Excellent Company capableof flexibly responding in the Market Environment.”
The biggest reason for this is that the market
environment is undergoing large changes due toenvironmental issues, and we believe that we need tofocus on businesses such as renewable energy, which
can take the place of coal-fired power plants, which
are expected to become more difficult to construct.
In the medium-term management plan, we areaiming for net sales of ¥250.0 billion and ordinary
income of ¥21.0 billion in FY2021 in order to achieve
this management vision. While stably realizing
strong earnings in base areas, we will also undertake
two new businesses with the goal of expanding
business domains and markets.
The first is the “power generation business,”which will turn us into a power producer. We will
first gain achievements domestically before
developing overseas. The next is the “vegetablefactory business,” which focuses on the possibilities
between agriculture and energy. Utilizing ourstrengths such as factory construction and energy
management, we will establish and operate joint
ventures with our knowledgeable specialized
partners, and work to improve volume efficiency
and profitability by increasing the size of factories.
In addition, we are working to promote thedigitalization of power generation and generalindustrial plants.

Honing our technological andfrontline capabilities attentivelyaligned with voices of the times

The Company helps to make more abundant andcomfortable lifestyles a reality through its power,
industrial and social infrastructure businesses. To
such ends, we will continue to provide valued e m a n d e d b y s o c i e t y, t h e r e b y h o n i n g o u rtechnological and frontline capabilities attentively
taking heed of voices of the times. Moreover, as weengage in our business activities we will also
p ro m ote CS R- o r i e n te d m a n a ge m e n t t h at i s
cognizant of ESG principles and the SDGs, with due
consideration placed on the global environment.
We are committed to our aims of building
relationships of trust with our stakeholders, helping
to bring about a sustainable society, and improving
our corporate value.
 
August 2019

Promoting business activities
while checking against SDGs

With regard to CSR management, we begin withthe belief that, “Toshiba Plant Systems & Services
Corporation places top priority on life, safety andlaw compliance, and desires to be a corporate group
trusted by the community.” Accordingly, we have
not only strengthened and enhanced the corporate
6

FY2019 Medium-Term Management Plan (FY2019—FY2021)

Group created the Medium-Term Management Plan, which was initiated in FY2019. Under this plan,
the Group is advancing specific measures based on the three basic strategies stipulated in the plan.

Basic Strategies We will steadily achieve strong earnings and growthunder the three basic strategies.

Promoting businesses thatsteadily achieve strong earnings

1

Pursuing innovation
through BCM management

2

Promoting CSRoriented management

3

232.5
88.5

116.8

20.2
144.0
25%

FY2017

22.3

127.3
18%
FY2018

230.0

235.0

112.0

112.0

13%

21.0

19.5

19.0

118.0

120.0

123.0
24%

FY2019FY2020(Plan)(Plan)

7

130.0
28%

FY2021(Plan)Net sales (Billions of yen)

■ Infrastructure andIndustrial Systems Division■ Power Systems Division■ Ordinary income (Billions of yen)Overseas sales ratio◦Create new businesses
Entry into power generation business
Entry into vegetable factory business◦‌Implement CPS technology*1 inexisting businesses‌Supply energy management
services to industrial parks, etc.

▶ Strengthening competitiveness of EPC business◦Quality◦Strengthening competitiveness through cost reduction
Steadily implement a quality management system
Integrated procurement, global procurement
COPQ*2 reduction activities, eliminate
Design standardization, improve construction
quality non-conformance
methods, make testing methods more efficient
Strengthen risk management
Optimize fixed costs◦Process improvements◦Technological capabilities
Expand application of engineering tools
Raise/improve operational efficiency through IT
Systematic development of supervisory/
Work process optimization
chief engineers and project managers*1 ‌CPS (Cyber Physical System): A mechanism for collecting physical data, analyzing the collected data in cyberspace by using digital technology toconvert them into easy-to-use information and knowledge, and providing feedback to the physical world so as to create added value*2 COPQ (Cost of Poor Quality): Unnecessary costs due to low quality or defective quality

2 Pursuing innovation through BCM management

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

Promoting CSR3 oriented
management

Toshiba Plant Systems & Services Group   places top priority on life, safety and law
compliance. At the same time, we will work
to build bonds of trust with society,including our customers and shareholders.

Company-wide strategy map●Finances●Society/customers●Work process ●Learning/growthDivisional strategy map●Finances●Society/customers●Work process ●Learning/growth

Clarify goals

Top management

Work in line with the strategies

Life in harmony
with the environment

Local
community
Globalenvironment

Safety8Marketinginnovation
Field/
procurement
innovation

Designinnovation

Inter-divisional
project

Each organization/individual

Economic
contribution
Work as a memberof society

Assess level ofachievement

244.2

250.0

▶ ‌Expanding businessdomains and markets◦‌J apan and Overseas (Japanese companies in Southeast Asia)
EPC for manufacturing plants…Semiconductor, chemical, life science related, etc.
Clean energy power generation facilities…Biofuel power generation facilities, solar
photovoltaic power generation facilities, etc.
◦Water and sewage treatment
Measures‌to handle earthquakes and flooding,
upgrade old facilities◦Building facilities, data centers‌power supply multiplexing/enhancement,
Stableupgrade extra-high voltage substations◦Transportation systems (airports, railways, roads)‌Airport lighting, etc., railway frequency converters /transformers, etc., road-related ETC, etc.

Report on progress

We will respond flexibly to the market environment
to ensure profitable and sustainable growth.

◦Nuclear power‌Decommissioning measures for Fukushima Daiichi
Nuclear Power Station‌Address new regulatory standards for resuming operations
Extend operating life of aging plants◦Domestic thermal power‌LNG thermal, biomass-mixed fuel power generation facilities‌Gas-fired combined-cycle power generation facilities, etc.
Upgrade and maintenance work
◦Overseas
Southeast Asia, Africa…‌Combined-cycle power
generation facilities
Renewable energy power
generation facilities, etc.
India, Nepal…Strengthen hydroelectric power business

Formulate androll out strategies

Quantitative Targets● Expanding business domains and markets
2 Strengthening competitiveness of EPC business●1▶ Expanding markets for existing businesses

Power Systems Division

To become an “Excellent Company capable of flexibly responding in the Market Environment,” the1 Promoting businesses that steadily achieve strong earnings
Infrastructure and Industrial Systems Division

Aspiring to be“Excellent Company capable offlexibly responding in the Market Environment”

Compliance
Customers

Toshiba Plant Systems &Services Group
Employees andfamilies

Shareholders
Suppliers

Great place
to work

Corporate
governanceRisk
management

Feature

Toshiba Plant Systems & Services Group— Active Throughout the World

Addressing Customer Challenges Underpinned
We contribute to building power, industrial andsocial infrastructures in respective nations bytaking on a broad range of initiatives encompassing
everything from setting up new power generation
facilities and factories to upgrading facilities andcarrying out small-scale renovations.
9 10 11
3

1 5 7
4TOSPLANT ENGINEERING (THAILAND)CO.,LTD.

TPSC US CORPORATIONTPSC (VIETNAM) CO., LTD.

1

6

7

At a company tour forthe 25th anniversary

Established: March 1, 1993
Activities: Bidding on behalf of overseas subsidiaries
of Toshiba Plant Systems & Services Corporation,
construction, maintenance, procurement ofmaterials and machinery,  engineering, etc.; workr e l a t e d t o co m p l i a n ce w i t h l o c a l co n t e n t
requirements for orders received by Toshiba Plant
Systems & Services Corporation, procurement oflocal materials and machinery for such orders,
subcontracting to local companies, dispatch of local
temporary staff; and local information gathering

Our longest-held overseas subsidiary,TOSPLANT ENGINEERING (THAILAND) CO., LTD. celebrated its
25th year in business in March 2018. This company mainly
serves Japanese companies in Thailand, and engages in EPC
operations with respect to construction of factories andfacilities that generate power using natural energy sources. This
company also engages in overseas training geared todeveloping a more international workforce of junior employees.

6

8

2

TPSC (INDIA) PRIVATE LIMITED
PT. TPSC ENGINEERING INDONESIA
2

Employees of the company

3

Established: August 26, 1994
Activities: Work related to compliancewith local content requirements fororders received by Toshiba Plant
Systems & Ser vices Corporation,
procurement of local materials andmachinery for such orders,
subcontracting to local companies,
dispatch of local temporary staff; andlocal information gathering

Hyderabad Office: Ceremony
for the 20th anniversary

Greater Noida Office: Groundbreaking ceremony for
expansion of hydroelectric turbine assembly plant

Established: December 15, 1998
Activities: Bidding on behalf of overseas
subsidiaries of Toshiba Plant Systems & Services
C o r p o rat i o n , co n st r u ct i o n , m a i n te n a n ce ,procurement of materials and machiner y,
manufacture, assembly, engineering, etc.; work
related to compliance with local content
requirements for orders received by Toshiba Plant
Systems & Services Corporation, engineering,procurement of local materials and machinery forsuch orders, manufacture, assembly,
subcontracting to local companies, dispatch of local
temporary staff; and local information gathering

Our overseas subsidiar y PT. TPSC ENGINEERINGINDONESIA marked its 25th anniversary in August 2019.
This company mainly handles local projects for Toshiba
Plant Systems & Services Corporation in Indonesia, and inrecent years has been engaging in projects involving large
thermal power plants and construction of factories.

One of the oldest Japanesecompanies in India, TPSC (INDIA) PRIVATE LIMITED
celebrated its 20th anniversary in December 2018. With
offices in two locations in India, it mainly handles EPC
operations for thermal power, hydropower, substation andgeneral industrial projects. This company has been engaging
in various projects thus far both within and outside of India,
and accordingly plays a major role in the global expansion of
Toshiba Plant Systems & Services Corporation.

TPSC ENGINEERING (MALAYSIA) SDN. BHD.

TPSC (THAILAND) CO., LTD.

4

5

Established: February 26, 2001
Activities: Work related tocompliance with local content
requirements for orders in Malaysia
and elsewhere jointly received by
Toshiba Plant Systems & Services
Corporation, including
engineering, planning ofTeam building event
commissioning, construction,(jungle trekking)construction management, project
management , maintenance,
procurement of materials and machinery, subcontracting to local
companies, and dispatch of local temporary staff; and local information
gathering

Established: June 23, 2010
Activities: Work related to compliancewith local content requirements fororders received by Toshiba Plant
Systems & Services Corporation,
including construction, construction
management, maintenance,
procurement of materials andEmployees of the company
machinery, and engineering; support
for order procurement activities by
Toshiba Plant Systems & Services Corporation; procurement of local materials
and machinery for such orders, subcontracting to local companies, dispatch of
local temporary staff; and local information gathering

TPSC (THAILAND) CO., LTD. was established in June 2010 to handle
operations involving a combined-cycle power plant project awarded
in 2010. This company has worked in collaboration with Toshiba Plant
Systems & Services Corporation and TPSC ENGINEERING (MALAYSIA)
SDN. BHD. to complete 12 power plant projects in Thailand so far, andare currently taking on construction involving one such project inCambodia. In addition, given the popularity of football in Thailand,
TPSC (THAILAND) CO., LTD. has also formed a futsal team, andotherwise facilitates interaction with the local community in part byholding gatherings with its customers and other business partners.

An overseas subsidiar y established in 2001, TPSCENGINEERING (MALAYSIA) SDN. BHD. ser ves as anengineering base for handling our thermal power projects
overseas. In the multi-ethnic nation of Malaysia, thiscompany cultivates mutual understanding andcommunications among its employees who embody a wide
variety of religions and customs by implementing various
events reflective of their various backgrounds in-house andelsewhere, and by arranging cross-cultural exchanges.

9by the Notions of Security, Safety and Quality
Established: October 1, 2010
Activities: Dispatch of engineers
to p o w e r p l a n t co n st r u ct i o nprojects being carried out by the
Toshiba Group; coordination of
Toshiba Plant Systems & Services
Corporation’s global trainees attraining sites in the United States,
assisting with living arrangements,
etc.

Having encountered substantial changes to its businessenvironment subsequent to its establishment in October
2010, TPSC US CORPORATION currently takes charge of
operations that mainly involve dispatching engineers andtaking on global trainees.
T h i s co m pa n y a l s o a ct i v e l y e n ga ge s i n s o c i a lcontribution activities such that entail engaging inconstructive communications with local communities
through initiatives that include raising funds to help
breast cancer patients and donating winter clothing.

Established: May 6, 2014
Activities: Work related to compliance withlocal content requirements for projects in
Vietnam including construction, construction
management, project management,
maintenance, procurement of materials andmachiner y, subcontracting to local
companies, and dispatch of local temporary
staff; work related to projects in Vietnam
including procurement of materials andmachinery for which Toshiba Plant Systems &Services Corporation has received orders,
subcontracting to local companies, dispatchof local temporary staff; and local information
gathering

Established as an overseas subsidiary in May 2014,
TPSC (VIETNAM) CO., LTD. takes charge of tasks geared toconstruction of power plants in Vietnam, such that
include handling local support operations, gathering
information and carrying out activities for gaining orders.

TPSC PHILIPPINES CORPORATIONSHIBAURA PLANT CORPORATION

89TPSC PHILIPPINES CORPORATION mainly engages ingeneral industrial projects in the Philippines, primarily
entailing expansion and renovation of factories belonging
to Japanese companies, power plant construction, andmaintenance operations. Established in June 2015, TPSCPHILIPPINES CORPORATION is our newest overseas
subsidiary. This company also engages in overseas
training geared to developing a more international
workforce of junior employees.

SHIBAURA PLANT CORPORATION was formed through amerger in 2004 of Shibaura Technical Service Co., Ltd.   
with Shibakyo Plant Kensetu CO.,Ltd, which started
operations upon its launch in 1983. SHIBAURA PLANTCORPORATION aims for quality that is a rank above therest, leveraging its strengths in supporting on-site
operations in terms of both tangible and intangible
aspects, in carrying out tasks that currently involve
managing construction of thermal and nuclear power
plants, handling general industrial electrical work,
procuring materials and machinery used in temporary
structures for construction, and handling construction of
temporary structures.

Established: June 30, 2015
Activities: Work related to orders
received by Toshiba Plant Systems& Services Corporation including
electrical equipment work,machinery equipment work, civilengineering and construction,
procurement of local materials
and machinery, subcontracting toChristmas party
local companies, dispatch of local
t e m p o ra r y sta f f ; w o r k i n t h ePhilippines and adjacent countries including engineering, electricalequipment work, machinery equipment work, civil engineering andconstruction, procurement of local materials and machinery, andmaintenance; and local information gathering

KANSAI TOSHIBA ENGINEERING CORPORATION10TOSHIBA ENGINEERING SERVICE CORPORATION

Established: January 26, 1970
Activities: Electrical equipment maintenanceservices involving power substation plants,
industrial plants, and public-sector plants

Since its establishment in 1970,
KANSAI TOSHIBA ENGINEERINGCORPORATION has been engaging inoperations that involve testing andadjusting electrical equipment ,conducting maintenance andinspection, and handling repair workfor the Toshiba Group’s social infrastructure andindustrial fields in the Kanto and Kyushu regions mainly
in western Japan.
In addition, this company leverages its strengths withrespect to engineering companies in handling a wide
range of operations extending from design, procurementof equipment, and installation to maintenance andinspection, thereby addressing demand from customers
in the increasingly diverse general industrial realm.

Established: December 23, 1983
Activities: Construction and repairof power substation equipment,
environment-related facilities, etc.,
and periodic inspections;construction of electrical andcommunications equipment ;rental, repair and sales of
construction materials andtemporary structures11

Established: April 1, 1981
Activities: Staff division operations forrespective companies of the Toshiba Plant
Systems & Services Group; dispatch of staff torespective companies of the Group, andtechnical support operations

TOSHIBA ENGINEERING SERVICECORPORATION facilitates smooth
execution of business within the
Toshiba Plant Systems & Services
Group, carrying out operations that
include handling general affairs,
inter-office delivery services, and technical support
services. It is also entrusted with handling employee
benefit operations and otherwise strives to enhance
convenience for Group employees by operating various
employee benefit services such as those involving kiosks,
stock ownership plans, insurance plans, and recreation
facilities.

10Toshiba Plant Systems & Services Group’s Business Domains

Toshiba Plant Systems & Services Group emphasizes
industrial and social infrastructure that enables people
society and industry to continually be ensured ofPower Systems
Division

the building of power,
active in all works of
security and safety.

Toshiba Plant Systems & Services Group’s principal
sphere of business includes the building of a foundationthat supports the advancement of society and industry
through the construction of power, industrial and social
infrastructure encompassing power plants andsubstation facilities, water and sewage facilities,
transportation facilities, industrial plants and buildings.

Infrastructure andIndustrial Systems Division

The Power Systems Business provides
engineering, construction, testing, trial
operation and such maintenance services
as inspections and renovations forthermal, hydroelectric and nuclear power
plants. We conduct a broad range ofbusiness involving thermal andhydroelectric power generation facilities
in Japan and overseas. In particular, wehave built up a track record throughnumerous projects centered in the ASEAN
region. In addition to commercial power
plants, we apply our nuclear power
technologies at nuclear power plants andrelated facilities.

The Infrastructure and Industrial
Systems Business provides engineering,
construction, test operations,adjustments and field services, etc. fors o c i a l i n f ra s t r u c t u r e a n d g e n e ra lindustrial facilities, and clean energy
power plants. We conduct business for
public- and private-sector facilities in a
broad range of fields, including electricalfacilities and equipment, dispersed
power source facilities, substations,transmission and distribution facilities,
and other energy-related business, aswell as production and related facilities.

Net Orders

Net Orders¥116.3

Year on year

¥116.8billion27.3% decrease Percentage of orders 49.9%

Year on year

Net Sales¥127.3
Year on year

160.0

¥116.8billion

Net Orders and Net Sales Amount Trends
144.5

139.6

120.0

Net Orders

144.0

160.0

80.0

Year on year

billion32.1% increase Percentage of orders 47.9%

Net Orders and Net Sales Amount Trends (Billions of yen)(Billions of yen)

160.0

127.3

120.0

116.3

80.0

Net Sales

Net Orders

106.5

108.9

FY2016FY2017

87.1

88.5

116.8

116.8

40.0

40.0
0.0

7.2% increase Percentage of orders 50.1%

Net Sales

11.6% decrease Percentage of orders 52.1%

Net Salesbillion

FY2016FY20170.0

Source: Tokyo Electric Power Company Holdings, Incorporated

FY20181112FY2018CSR Management

Aggressively implementing CSR management as ato the building of a foundation that supports society
Toshiba Plant Systems & Services Group’s Basic CSR Policy

Protect the environment which supports life, and contribute to society

To reward our customers’ trust and contribute to the advancement ofsociety, we engage in environmental activities in all EPC businessprocesses.

SocialProvide high-quality systems and services

We contribute to resolving social issues as a corporate group thatdevelops power, industrial and social infrastructure.

Governance

Practice thorough compliance and operate properly

We thoroughly comply with laws and regulations, societal norms,
ethics, internal rules and other directives on a global basis, andpromote business activities amid fair and honest competition.
CSR Promotion Framework

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

company that contributes
and industry

Important Issues for the Sustainable Growth of the Group
Important Issues

Environmental Management

Environment

In order to continue to be trusted by society, theToshiba Plant Systems & Ser vices Group
promotes all business activities with the highest
p r i o r i t y p l a ce d o n l i f e , s a f e t y a n d l a w
compliance, and fulfills its social responsibilities
so as to satisfy all stakeholders.

ISO 26000 Core Issues

Recognizing that working to solve
environmental issues in all of our businessactivities is one of the main pillars of theco m pa n y ’ s m a n a ge m e n t , a l l o f o u r
employees strive to reduce theenvironmental impact of our businessactivities.

Quality Management

Strive to increase customer satisfaction bycontinually improving the quality
management system.

Occupational Health and Safety Management

Create an environment where employees can workwith peace of mind and promote safety activities
with the aim of having zero work accidents.

Corporate Governance

Enhance our corporate governance systema n d st r i v e to i m p ro v e m a n a ge m e n ttransparency and effectiveness in order tokeep the trust of stakeholders.

Environment
Community

Involvement andDevelopment

CSR-Related Staﬀ DivisionCorporate Planning Division,
Administration & Human Resources Division,
Finance & Accounting Division,
Industrial Safety & Environment Control Division, etc.
Domestic Subsidiaries

13

Secretariat

CSR-Related Committees

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

Toshiba Plant Systems &Services Corporation

Overseas Aﬃliates

P17~

Human Rights

Labor Practices
Fair Operating
Practices

P24~

Consumer Issues

Organizational
GovernancePresident

CSR Governance Committee

Corresponding SDGs

Transforming our world: the 2030 Agenda for Sustainable
Development was adopted at the United Nations Sustainable
Development Summit held at the UN headquarters in New York
from September 25-27, 2015. The Agenda is a plan of action forpeople, the planet, and prosperity, and includes declarations
and goals. These goals were developed to succeed theMillennium Development Goals (MDGs), and are officially called
the Sustainable Development Goals (SDGs). They comprise 17
goals and 169 targets for these goals.
Toshiba Plant Systems & Services Group will contribute to theinitiatives to achieve these goals for sustainable development.

14

P33~

FY2018 CSR Activities and FY2019 Issues and Goals
Toshiba Plant Systems & Services Group places top priority on life, safety and law compliance. At theRelated SDGs

Environment

E
Community
Involvement
andDevelopment
Human Rights

Labor

Practices

Ｓ

Fair

Operating
Practices

ConsumerIssuesＧ

Organizational
GovernanceAction Policy

To reward our customers’
trust and contribute to
the advancement ofsociety, we engage inenvironmental activities
in all EPC businessprocesses.

Activity Themes

FY2018 (Plans & Activities)
Activity Plans

C o n s i d e r i n g i d e a l o f ・ ‌Identify environmental measures in all business processes,
share measures and develop them into activities
environmental activities・ ‌Reduction of energy-derived CO2
Maintain level of energy conservation activities・ ‌Efficient use of resources (reduction of waste
emissions)
Reducing the environmental Study and implement initiatives to reduce
impact of business activities
packaging materials
Maintain high recycling rate・ ‌Conservation of biodiversity
Promote green procurement for office supplies
Promote paperless meetings in each organization・ ‌ Promote provision of eco-friendly products and new‌Promoting provision of ecoenergy equipment
friendly products and・ ‌Reduce man-hours and materials in construction by
construction
developing construction methods and technologies

・ ‌P rovide continual support forW e h a v e o f f i c e s i n 8 projects that restore and preserve ・ ‌K yoto: Support the conservation of a statue of
Senjuin no Miya at Shinnyoji
countries around the world. domestic cultural properties
As a good corporate citizen, ・ ‌Continually build social infrastructure ・ ‌India: Continue to support the Solar Lantern project
we engage in meaningful and support programs for the next ・ ‌Indonesia: Support the construction of Ledang
Primary Schoolcommunication with local generation in emerging countries
communities, and support awide range of programs to ・ ‌Continually engage in social contribution ・ ‌Carry out similar social contribution activities
contribute to the sound and activities at offices and worksites
at our offices and worksites‌Provide ‌cooperation and support forsustainable advancement of ・・ ‌M aintain the system to help employees
volunteer activities carried out
society.
individually engage in volunteer activities
individually by employees
Toshiba Plant Systems &Services Corporation has
3,519 employees, while
including groupcompanies (4 domestic, 8
overseas), there are 4,395
employees. We view
diverse personnel andworking styles positively,
and w or k on a g lobal
basis to create work
environments that lead to
imagination andcompetitiveness for ourbusinesses.
Based on the understanding that ourbusiness depends on support fromsuppliers and partner companies,
we make sure to engage in fair,transparent and free competitionand engage in appropriate business
transactions. By doing so, we create
relationships in which all parties can
co-exist and prosper.

As a company that supports society
and industry, we deliver quality
infrastructure and services that canplease many people in society.
We conduct business activities withcustomers in a broad range of fields,such as thermal, hydroelectric andnuclear power plants, and public- andprivate-sector facilities including
energy-related businesses, production
facilities and related facilities.

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

Training and utilization of ・ ‌Enhance the career design system and use it topersonnel
develop human resources
Supporting diverse working
stylesPromoting work-life balance
Ensuring health and safety・‌ As a part of the Workstyle Reform Project, study
measures to help senior employees work witha high level of motivation until the age of 65・ ‌I mprove work efficiency and shorten total
working hours through putting the Workstyle
Reform Project into action・ ‌A chieve zero workplace accidents and zero healthimpairments by thoroughly establishing basic work
operations and actions through the continual improvementof occupational health and safety management systems・ ‌Continue compliance related to procurement to ensure transparent
and fair business transactions
Ensuring transparent and fair ・‌Confirm that all worker dispatching companies we do business withbusiness transactions
are transitioning to the license system under the Amended Worker
Dispatching Act in advance of the September 30 deadline fortransitional measures for the unified application of the license system

CSR promotion in the supply chain・ ‌C heck on the status of our suppliers’ CSR(Consideration of human rights,
initiatives
labor practices, and environment)
Maintaining and enhancing
quality management

Enhancement of quality・ ‌Promote and firmly establish Company-wide
quality activities based on ISO 9001:2015, andmaintain and improve quality management・ ‌Continuously carry out PDCA cycles in order toenhance quality, and work to continuously
improve the quality management system・ ‌Strive to provide services that contribute to
Raising customer satisfaction solving social issueslevel・ ‌C ontinuously implement improvement
activities to address customer needs

Strengthening initiatives for ・ ‌C onduct an appropriate review of all 73
the Corporate Governance principles
C ode and appr opr iatel y ・ ‌Handle Corporate Governance Code revisions
and formulate policies, etc.
In order to continue to be addressing revisions
a corporate group trusted・ ‌
Improve the effectiveness of the internal control system
by society, we enhancefor corporate governancethe corporate governancesystem and strive to raise Enhancement of the risk ・ ‌Improve Company-wide compliance awareness bymaking sure all officers and employees understand theour level of management management system
Standards of Conduct and continually implementing
transparency andcompliance training and other types of training
effectiveness.
・ ‌Enhance the Group management system
Maintaining ethical standards・ ‌Continually provide education related to complianceand information security, and rank-based training, etc.

We carry out business operations ・ ‌E nsure a stable share price, ・ ‌Maintain the target of a consolidated dividend payout ratio ofthat meet the expectations of our market capitalization, and approximately 30%, the basic policy on the profit allocation
shareholders and other investors, dividend payout ratio・ ‌Continually carry out timely disclosure as stipulated by the Tokyoand strive to provide timely and ・ ‌Strive to disclose appropriate IR Stock Exchange as an enhancement of IR activities, and provide
accurate information disclosure.
information in a timely manner
timely and appropriate information for institutional investors

15

same time, we will work to build bonds of trust with society, including our customers and shareholders.
Activities・ ‌Identified environmental measures in business processes withrespect to projects laterally across the company

・ ‌Reduction of energy-derived CO2
Maintained current levels of energy conservation activities: Electric power: 3,810,000 kWh
Changed lighting to LED・ ‌Efficient use of resources (reduction of waste emissions)
Studied and implemented initiatives to reduce packaging materials
Maintained high recycling rate: 99%・ ‌Conservation of biodiversity
Promoted green procurement for office supplies
Promoted paperless meetings in each organization (reduction of approximately 1,540,000
sheets of paper – A4 size equivalent)

Evaluation

FY2019 (Plan)

Activity Themes

Future Issues and Goals

・ ‌Integrating business activities ・ ‌Develop and firmly establish environmental measures○and environmental activities
within business processes・‌Promoting energy-saving measures
Maintain level of energy
conservation activities・ ‌Reducing industrial waste・ ‌Carry out initiatives for respective activities based on○
Promote measures to reduce waste results of study on ideal environments
and recycle・ ‌Promoting green procurement
・Promoting paperless meetings・ ‌Promoting provision of eco・ ‌Continue to provide renewable energy products such as
friendly products andsolar photovoltaic power generation facilities
construction・ ‌Continued to provide renewable energy products such as solar
photovoltaic power generation facilities○・ ‌Kyoto: Conserved the statue of Senjuin no Miya at Shinnyoji・ ‌Cambodia: Continued to support the upgrade of a drinking watersupply system・ ‌India: Supported the Solar Lantern project・ ‌Indonesia: Supported the construction of Ledang Primary School・ ‌C ontinually build social・ ‌India: Continue to support the Solar Lantern project
infrastructure and support・ ‌Provide support for construction and repair of toilets at○
programs for the next
the SAKURA CAMBODIA-JAPAN FRIENDSHIP SCHOOL
generat ion in emerg ing(TOMNOP ROLORK CHAS PRIMARY SCHOOL)
countries・ ‌Carried out similar social contribution activities at our offices andworksites・ ‌Maintained the system to help employees individually engage involunteer activities・ ‌Held human rights lecture to coincident with human rights week・ ‌Provided education on human rights at rank-based training・ ‌Implemented career entry program that entails job matching for employees
desiring transfer, and carried out career design interviews and personnel
evaluation feedback interviews between employees and their superiors・ ‌Overhauled employment structures through reorganization of affiliated companies
・ ‌Eased up on requirements for salary increases by overhauling the pay andconditions system・ ‌Revamped work schedule options with the aim of bringing about more flexible approaches to workthrough initiatives under the Workstyle Reform Project・Currently in the process of conducting initiatives for improving work efficiency by revising work processes・ ‌Accidents have occurred as a result of not adhering to the basic
work operations and actions・ ‌‌Launched activities that include health-related events geared topromoting health management・ ‌Worked to implement thorough compliance related to procurement by providing training
to officers and employees about relevant laws and regulations, including anti-trust laws,
subcontractor regulations, construction business act, ordinance for eliminating organizedcrime groups, and enrollment in social insurance
Confirmed that all worker dispatching companies with which we do business transferred
their undertaking system to the license system under the Amended Worker Dispatching Act

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

・ ‌Underwent regular and extended ISO 9001 examinations, andacquired certifications Company-wide・ ‌Continuously improved the effectiveness with PDCA cycles by carryingout quality activities based on the quality control policy, along with efforts
aimed at organizing and rectifying the quality management system・ ‌Analysis of customer satisfaction and dissatisfaction data revealed
no serious dissatisfaction information
・ ‌Implemented improvement activities to address customer needs
based on survey results

In line with the Corporate Governance Code revisions as of June 1, 2018, establishedfive new principles and revised nine principles; on December 27, 2018, reneweddisclosure with release of all 78 principles, upon having passed resolutions on wordingof the new and revised principles at the Board of Directors meeting held on that date・ ‌Strengthened initiatives for the whistleblower system (thoroughlyfamiliarized employees, including those of Group companies,
regarding matters that include systems, operations and procedures)・ ‌Ensured thorough compliance with the Standards of Conduct bycarrying out compliance lectures for officers and rank-based training・ ‌Strengthened Group governance by establishing rules for overseas
subsidiaries
・ ‌Improved Company-wide compliance awareness by adequately
and appropriately implementing training・‌Achieved the target of a consolidated dividend payout ratio of approximately
30%, the basic policy on the profit allocation (FY2018 28.5%)
・ ‌Provided timely disclosure as stipulated by the Tokyo Stock Exchange as anenhancement of IR activities, and provided timely and appropriate information
for institutional investors (financial results meetings, IR meetings, etc.)

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

◎
◎
◎

Respect for human rights

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

Promoting workstyle reform・ ‌D evelop measures geared to achieving more flexible
approaches to work・ ‌Improve work efficiency by enhancing work processes romote workplace improvement activities making use・ ‌Pof external consultants

Training and utilization of ・ ‌B uild highly convenient management tools andpersonnel
effectively develop human resources・ ‌A chieve zero workplace accidents and zero healthimpairments by firmly establishing basic work operations
and actions through the continual improvement ofoccupational health and safety management systems△

Ensuring health and safety○・ ‌Continue compliance related to procurement to ensure transparent
and fair business transactions
Ensuring transparent and fair ・ ‌Work to eliminate anti-social forcesbusiness transactions・ ‌Undertake every effort to make preliminary arrangements involving
systems, etc. geared to ensuring that no transactions will be hinderedby the consumption tax hike (8% to 10%) effective on October 1○

CSR promotion in the supply chain(Consideration of human rights, ・ ‌Check on the status of our suppliers’ CSR initiatives
labor practices, and environment)○

Maintaining and enhancing
quality management○・ ‌Strive to provide services that contribute to solving
Raising customer satisfaction social issueslevel・ ‌C ontinuously implement improvement activities toaddress customer needs

○

○
○

・ ‌E
 ngage in quality activities based on ISO 9001, maintainand continue certifications Company-wide, and work toorganize and streamline operations・ ‌W ork to continuously improve the quality management
system utilizing PDCA cycles・ ‌D evelop an optimal structure for the Board of Directors
Building appropriate・ ‌S ecure Outside Directors (also consider percentage ofgovernance structuresuch members)・ ‌C onduct an appropriate review of all 78 principles ofCorporate Governance CodeAppropriately address・ ‌C heck on developments regarding revisions to therevisions, etc. (planned) to theCompanies Act and the Securities Listing Regulations
Companies Act and the・ ‌F ormulate policies regarding revisions to the Companies
Securities Listing Regulations
Act and the Securities Listing Regulations, andappropriately address revisions

Maintaining ethical standards・ ‌C ontinually provide education related to complianceand information security, and rank-based training, etc.

 aintain the target of a consolidated dividend payout ratio of・ ‌E nsure a stable share price, ・ ‌Mmarket capitalization, and approximately 40%, the basic policy on the profit allocation○
dividend payout ratio・ ‌C ontinually carry out timely disclosure as stipulated by the Tokyo・ ‌D i s c l o s e a p p r o p r i a t e I R Stock Exchange as an enhancement of IR activities, and provide
information in a timely manner timely and appropriate information for institutional investors《Evaluation Standards》 ◎ Achieved all targets○ Targets mostly achieved

16△ More remaining issues than achievements

× No progressEnvironment

Protect the environment which supports life, and contribute to society

Engaging in Environmental Management in All EPC Business Processes

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

E（ Engineering ）Activities to reduce environmental impact in all EPC processes▪Promotion of engineering to
reduce environmental impact▪Establishment and implementation ofrules for eco-friendly work operations▪Promotion of providing productsthat reduce environmental impact▪Introduction and promotion of green
procurement rules recommended by the Company▪Promotion of reducing and reusing
packaging materials for procured items▪Promotion of introducing low CO2 emission
vehicles recommended by the Company

Promotion of activities to reduce environmental impact

Environment
Engaging in environmental activities in all EPC business processes

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

Environmental Management

We have established a “Basic Policy for the Environment” and an “Environmental Management Concept,” and carryout environmental activities in line with both.

Basic Policy for the Environment

In line with our Commitment, which is “to be a corporate group that creates abundant value andcontributes to the lives and cultures of people around the world through our power, industrial and social
infrastructure businesses, based on respect for human rights,” and in accordance with our recognition that a
corporate social responsibility is “to hand over the precious global environment to the next generation in asound condition,” we contribute to the realization of a sustainable society through promoting environmental
management highlighted by ongoing improvements related to the environment and efforts to prevent
pollution, with the aim of realizing the Toshiba Group Environmental Vision.
1.	‌Viewing the initiatives for the environment as one of the primary responsibilities of the management, we
promote environmental activities in accord with the economy.
2.	‌In order to protect the global environment, we will promote environmental activities, such as evaluating
the environmental impacts of our business activities, including their impacts on biodiversity, and will
establish environmental targets for reducing our environmental impact, preventing pollution, andachieving other goals.
3.	‌In addition to complying with environmental laws and regulations, as well as other guidelines that wehave agreed to, we will establish our own management standards and improve our management.
4.	‌A s a company that engages in everything from planning, design and other engineering operations, toprocurement, construction, and field services, we will look to reduce our environmental impact, promote
recycling, prevent global warming, and conserve resources and energy in all of our business processes.
5.	‌We will raise the environmental awareness of all employees and everyone who works to advance theCompany, and work on environmental activities with all of us doing our part. In addition, we will actively
disclose information and communicate with local communities and society as a whole as we strive tomaximize cooperation.

Initiatives for Environmental Management

We carry out initiatives for environmental management under our Environmental Management Concept of “Wework to reduce the environmental impact of our EPC business activities” to promote sustainable consumption andservices. Such initiatives include curbing the resource and energy consumption and the environmental impacts
accompanying our EPC business, practicing green procurement and providing eco-friendly products.
17&
C（Construction
Commissioning ）P（ Procurement ）▪Introduction of Company rules forhandling chemical substances, etc.
▪Reduction of waste and promotion of the 3Rs*
▪Operation of worksites with lessenvironmental impact

Participation in global environmental events (besides business processes)*3Rs: Reduce, Reuse, and Recycle

Environmental Activities and Material Flow

The material flow below shows the extent to which business activities impact the environment.

Business activities

INPUT (Amount used)

OUTPUT (Environmental impact)

Procurement of materials and services

Environmental risks

Zero environmental non-conformance

Promotion of reducing environmental impacts

EnergyElectricity: 3.80 million kWh
Gasoline: 276 KL
Light oil: 116 KL

Energy-derived CO 2 emissions
Amount of emissions: 2,965 t-CO 2

Prevention of environmental non-conformance
Mitigation of climate change

Amount of generated waste
Total amount of discharged waste: 3,653 t
Final disposal volume: 2.0 t

Eﬃcient use of resources(Waste associated with construction)

Materials

Copy paper: 31,660,000 sheets

Copy paper
Number of trees cut down: 2,435 trees

Conservation of biodiversity

Provision of facilities and systems to customers(Note) The values above are from FY2018.

Criteria used to calculateenergy data‌Electricity:
Power consumption of offices and factories.
Gasoline and light oil: Fuel for vehicles used by offices and worksites.

Conversion coefficient for CO2‌Electricity:
5.31 t-CO2 /10,000 kWh
Light oil: 2.62 t-CO2/KL

Copy paper

Conversion coefficient for trees
used for copy paper

Environmental Activity Targets‌Copy paper: Amount of copy paper purchased by offices and factories.
13,000 sheets (Size A4) /tree

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

Maintenance of zero environmental
non-conformance
Mitigation of climate change

Efficient use of resources

Conservation of biodiversity

Activity Items

Continuance of zero environmental non-conformance
Reduction of energy-derived CO2 emissions

Gasoline: 2.32 t-CO2/KL

Activity Target

Zero environmental non-conformance

Maintenance of activity level

Reduction of total amount of generated waste

Reduction of amount of discharged waste

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

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

Sorting of waste with more care

Improvement of recycling rate

Initiatives for Conservation of Biodiversity

As part of biodiversity conservation activities, we use electronic media for internal meeting materials in order toreduce paper usage.

■ Results of FY2018
 ‌Reduction of roughly 1,540,000 sheetsof paper on an A4 conversion basis(Approximately 118 source trees)

Reduction of approximately

1,540,000 sheets(A4 conversion basis)

18

Source trees:

Reduced by approx.

118

Environment
Initiatives to Mitigate Global Warming

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

500

382

400
300
200

210

208

FY 2014

FY 2015

164
218

100
0

FY 2016384
84

Presumed

381
81

300

300

FY 2017

FY 2018In FY2018, we switched to LED lighting at Tsurumi Office as an environmental measure.

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

Company-wide Vehicle Fuel Consumption (Gasoline)
Fuel used

400

Although the distance traveled and the number ofvehicles vary yearly depending on construction detailsa n d l o c a t i o n s , w e a r e w o r k i n g t o r e d u ce f u e lconsumption by implementing eco-friendly driving andusing eco-friendly cars and other initiatives.

303.84300

12.6km/L

200

3,992
thousand km

100
0

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

FY 201413.0km/L

276.55

3,686
thousand km

FY 2015

Annual distance driven

13.5km/L

13.6km/L

245.13251.653,298
thousand km

3,421
thousand km

FY 2016

FY 2017(Unit: kL)

Average fuel economy

13.8km/L

276.11
3,798
thousand km

FY 2018

Consideration of Environmental Activities Matching Our Business Activities

To envisage our future environmental management activities, we formed a company-wide, cross-divisional project
entitled “Environmental Vision” comprising all business divisions and staff divisions responsible for environmental
management and considered the current situation since FY2018. Through this project, we have been able to clarify what ourenvironmental activities are as a company that engages in construction related to power, industrial, and social infrastructure.
①Identification of issues with current environmental activities
on a global scale, we reviewed and adjusted theIncreasingly serious impacts are growing, including
environmental activities we carr y out internally.
disasters caused by abnormal weather around the world.
A cco r d i n g l y, a f t e r co n s i d e r i n g s p e c i f i c f u t u r e
In response to this situation, the international
environmental initiatives, we decided to engage in “17community is engaging in a variety of initiatives, such as
Implementation Items” within the Company.
global warming countermeasures under the Paris
The “Environmental Vision,” a company-wide, crossAgreement and environmental efforts under thed i v i s i o n a l p ro j e ct , w i l l l a u n c h s u b - p ro j e cts to
Sustainable Development Goals (SDGs). Thus far in thesystematically carry out the “17 Implementation Items.”
initiatives we have engaged in as environmental
We aim to enhance and energize our environmental
activities, we have reduced the environmental impact in
activities by having each sub-project create ongoing,
all EPC business processes and worked to ascertain thespecific environmental activity guidelines, such as zerostatus of our electricity usage, the amount of generated
energy use at worksites and proactive use of green
waste, among various other aspects linked to CO 2
emissions. Looking to promote environmental activities
procurement.
even further to reflect the expansion of such activities

SDGs Environmentalrelated Goals

Environmental Management Vision

Goal 9 INDUSTRIAL INFRASTRUCTURE: Expand the clean energy business in the facility
construction field (air conditioning, fire extinguishing, lighting, security, energy-saving, IoT, ZEB, etc.)

Goal
CITIES AND COMMUNITIES: Promote the introduction of eco-friendly products
and technologies for public transportation agencies, etc. (airports, railways, roads, etc.)
Goal
CONSUMPTION AND PRODUCTION: Promote and enhance activities
to reduce environmental impact overseas (waste, CO2, chemical substances, etc.)
Goal

CLIMATE CHANGE: Enhance activities to reduce CO2

19

Goal 6 CLEAN WATER: Promote regional contribution activities at overseas worksites

Through Social Contribution Activities

Contribution through Business Activities

Goal 7 ENERGY: Develop the clean energy business based on technological capabilities
and our track record (power plants, solar photovoltaic, small- and medium-sizedhydroelectric, biomass power generation, etc.)

Promotion of social contribution activities at overseas
subsidiaries and worksites
Promote activities already underway (solar lanterns, drinking water)
and consider new activities②Promotion of environmental management
In April 2019, the Company amended theaforementioned “Basic Policy for the Environment,” andfurther clarified the Company’s intention to promotemanagement taking the environment into consideration(environmental management) and contribute to therealization of a sustainable society. Rather than viewing
environmental efforts as additional costs, environmental
management is based on the idea that environmental
efforts will lead to sustainable growth by controlling
environmental problems. We will curb resource andenergy consumption as well as environmental impacts
accompanying our business activities through the entire

life cycle, and promote sustainable consumption andproduction by reducing the environmental impact
within business areas as well as through green
procurement and the provision of eco-friendly products
and services, etc. The Company has already acquired acertain market size for eco-friendly products (solar
photovoltaic, small- and medium-sized hydroelectric,
biomass power generation, etc.). Going forward, we willcontribute to the realization of a sustainable society bypromoting business plans (Medium-Term Management
Plan, etc.) that take environmental management into
consideration.

③Development of future environmental activities (Activity plans for FY2019 and beyond)By carrying out the “17 Implementation Items“ identified in the “Environmental Vision” project, we will promote theEnvironmental Management Concept of “reducing the environmental impact of our EPC business activities.”“17 Implementation Items” related to Environmental Activities	 1) Reduce environmental impact in the engineering stage
Implementation items
E
related to engineering	 2) Create examples of eco-friendly work operations
	 3 ) Create list of recommended green procurement items

	 4) Create materials packaging guide
Implementation items
P
related to procurement	 5) Consider ways to reduce vehicles used to transport materials and machinery	 6 ) Consider the introduction of eco-friendly vehicles

	 7 ) Create manual of techniques for the storage, management, and handling of chemical substances	 8 ) Create‌
guide for eco-friendly work operations related to the handling ofchemical substances, oils, toxic substances, and other items
Implementation items
	 9) Create uniform policy for the handling of industrial waste
related to construction
C& commissioning
10) Create 3R policy guide for industrial waste, materials and machinery, equipment, and packaging materials11) Create list of recommended construction equipment and heavy equipment
12) Create guide for the reduction of environmental impacts of field offices

Other implementation
items related to overallbusiness site activities

13) Training for affiliates and partner companies

14) Create plan for reducing the environmental impact of office buildings15) Create recommended measures for eco-friendly driving16) Create measures to increase environmental awareness17) Participate in environmental events in local communities

We will create clear standards and rules to be followed, and develop uniform initiatives for the Company.

Close-up

Aiming for Zero-Energy Office Buildings

Management System (BEMS). We will provide energysaving building support ser vices and eco-friendly
building/factory construction, along with other services,and continue our efforts to reduce the burden on theenvironment through our business.

At the Chiba Service Center, which is responsible forplant maintenance services, a new ZEB-compatible* officebuilding was completed by the Company’s EPC on April
19, 2019. This office building has three floors above
ground and a total floor area of 464m2. It is operated as an
office of the Group, and demonstrations aiming for zeroenergy consumption through energy-creation and energysaving are being carried out. Energy is created by the solar
photovoltaic power generation system installed on therooftop; stored using an energy storage system and peakshifting; and saved using an energy-saving system, inwhich lighting and air conditioning are controlled byhuman sensors using image authentication technology.
The overall energy consumption by offices will be reducedby linking each of these systems with the Building Energy*‌A ZEB (net Zero Energy Building) is abuilding that aims to achieve a net
balance of zero primar y energ yconsumption over a period of one year. It
aims to achieve this by introducing
renewable energ y after realizing
significant energy savings while
maintaining the quality of the indoor
environment by controlling loads throughadvanced architectural design, the active
utilization of natural energy, and theintroduction of highly-efficient equipment.

20

Environment

Community Involvement
and Development

Assistance for Activities to Improve Social Infrastructure

Contributing to the sound and sustainable development of local communities

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

Social Contribution Activities
Basic Policy for Social Contribution Activities

As a company that handles power,
industrial and social infrastructure, we
contribute to sound and sustainable
development in the main countries andterritories in which we operate, based on
the Toshiba Plant Systems & Services
Corporation’s Standards of Conduct.
In Japan, we support activities related
to restoring and preserving culturalproperties in order to pass down ancientJapanese culture to future generations.
Overseas, we provide ongoing support
for activities related to improving social
infrastructure and developing future
generations (construction of schools andother educational facilities).
Also, as a good corporate citizen, wevalue communication with local
co m m u n i t i e s a n d p r o m o t e s o c i a lcontribution activities.

Activity Concepts

1. Assistance for efforts to pass down Japanese culture and techniquesI n order to pass ancient Japanese culture and wonderfultraditions down to future generations, we support efforts torestore and preserve cultural properties, and help pass down
restoration techniques and skills.
2. Assistance for activities to improve social infrastructureI n addition to improving social infrastructure through ourbusiness activities, we contribute to development of local
communities by supporting programs to upgrade infrastructure
in inadequate condition.

3. Assistance for activities to develop future generations
We support the construction of schools and other educational
facilities that provide learning opportunities to children thatwill build our future society.

4. Promotion of activities rooted in local communitiesW e value communication with people in local communities inwhich we operate, and continually engage in programs that
contribute to local communities.

Assistance for Efforts to Pass Down Japanese Culture and Techniques
A ssistance in restoration and preser vation ofdomestic cultural properties

Key projects supported by the project to restore andpreserve cultural properties in Imperial Convents

properties to future generations, since FY2010 we have

The conservation of a statue of Senjuin no Miya
Kyoto
2018
at Shinnyoji temple
Prefecture

In order to pass down precious Japanese culturalYearbeen assisting*2 with activities to restore and preserve
cultural properties through the “project to restore andpreserve cultural properties in Imperial Convents”*1.

Assistance project

Location

2016

T h e co n s e r vat i o n o f a stat u e o f A b b e s s
Kyoto
Gekkyoken at Shinnyoji temple
Prefecture

2014

The conservation work on a set of Genji screensNarabelonging to Chūgūji Imperial Convent
Prefecture

2015

2013

The conservation of a statue of Kotokuin no Kyoto
Miya at Shinnyoji temple
Prefecture

Key projects supported
Year Assistance project

Description

The restoration of a nikai-zushidana, a twoKyoto
2011 tiered decorated cabinet, belonging to Sanji
Prefecture
Chion-ji Imperial Convent
The restoration of the Nanakusa Emaki handscroll
Nara
2010
belonging to Hokkeji Imperial Convent
Prefecture*1 ‌P roject to restore and preserve cultural properties in Imperial
Convents: Project to restore and preserve the paintings, sculptures,craft works, textiles, and historic structures owned by Imperial
Convents for posterity.
*2 ‌This project is sponsored by the Medieval Japanese Studies Institute,and we provide support through the Foundation for Cultural Heritage
and Art Research.

Country

We upgraded drinking water supply system in order to supply
Installation of drinking
2018
safe water to four elementary schools and neighboring Cambodia
water supply system*1
residents in the Kingdom of Cambodia, Kandal Province.
2017
2016
2016
2015
2014

We installed drinking water supply system equipment (water
Installation of drinking storage tanks, water supply pumps, drinking water filters, etc.) in
Thailandwater supply system*1 order to supply safe water to elementary schools in four towns in
the Kingdom of Thailand, Sa Kaeo Province, Ta Praya District.

Bridgeconstruction*1

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

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

We built a water system, including an RO System (Reverse
Installation of water
Osmosis System) to a well in the area designated for support, India1
system*in order to supply safe water to local residents.

We built a water system, including a disinfectant tank, water
Installation of water
storage tank, and water distribution pipes, to provide safe Philippines
system*1
water to local residents.

Children now able to drink cleanwater (Thailand)

Bridge construction (Philippines)*1 Funding through the Nonprofit Organization World Vision Japan*2 Facility installation and donation through Lions Club Tokyo Akasaka

Supporting Activities of the Solar Lantern Project

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

Solar panels

Solar Lantern
user

VOICE

Working with our supporting partners

The conservation of a statue of Hongakuin no
Kyoto
Miya at Shinnyoji temple
Prefecture

The repair and preservation of the outer garments
Kyoto
2012 of a layered court costume (the uwagi andPrefecture
karaginu of a jūnihitoe ) owned by Reikanji temple

21

Support for the infrastructure projects in emerging countries
As a company that handles power, industrial and social infrastructure, we have helped upgrade inadequate
infrastructure since FY2014 in emerging countries where we have deep business ties, and offer assistance to contributeto the development of local communities.

NPO Gaia Initiative

Ms. Mizuho Takanashi

The NPO Gaia Initiative is an NPO that aims to contribute to the establishmentof appropriate relationships between the global environment and corporate
activities. In 2008, Toshiba Plant Systems & Services Corporation was the firstJapanese company to provide support to us when we launched the “Solar
Lantern project,” a project to create sustainable community infrastructure
centered on natural energy. Over the years since then, Toshiba Plant Systems &Services Corporation has assisted more than 50 villages without electricity. To
date, we have donated “solar lanterns” that can be charged with sunlight tovillages without electricity in India. However, recently, we are shifting to supply
electricity to each household by building collective solar photovoltaic power
generation networks called “Solar DC Micro-Grid,” each unit of which supplies
electricity to 10 households. People use the electricity created from sunlight intheir daily lives, such as for children to study and for women to do housework.
Going forward, we will continue to work closely with Toshiba Plant Systems &Services Corporation to deliver electric Light.
22

Environment
Assistance for Activities to Develop Future Generations

Support for the construction of schools and othereducational facilities in emerging countries
Since FY2010, we have been providing assistance* forthe construction of school buildings, dormitories andother structures for elementary and junior high schools,
as well as pre-schools, so that children in emerging
countries can haveopportunities to learn.

Key projects supported
Year

2018

*‌Assistance: Funding through theNonprofit Organization World VisionJapan

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

Provide high-quality systems and services

Cambodia

Indonesia

2015 Construction of Trung Dinh Satellite Preschool Vietnam
2014 Construction of Mwakikoya Primary School

Our business offices and worksites engage in activities
to contribute to local communities. Going forward, as agood corporate citizen we will continue to actively
engage in social contribution activities.

Forest maintenanceCountry

Construction of the Vien Son Primary and2016
VietnamSecondary School Dormitory

Promotion of Activities Rooted in Local Communities

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

In the elementary school designated for support, there were
not enough toilets compared to the approximately 1,300
children enrolled at the school due to the aging and state ofdisrepair of the toilets. We supported the construction of
new toilet buildings and the repair of the aging toilet
building, thereby creating an environment where children
can continue to learn in health and with peace of mind.**‌Funding through JAPAN TEAM OF YOUNG HUMAN POWER (JHP)

2017 Construction of the Ledang Primary School

Ledang Primary School (Indonesia)

Local volunteer activities

Assistance project/Description

Provide Support for Construction and Repair ofToilets at the SAKURA CAMBODIA-JAPAN FRIENDSHIPSCHOOL (TOMNOP ROLORK CHAS PRIMARY SCHOOL)

SocialTanzania

2013 Construction of Nonchan Kindergarten

Laos2011 Construction of Beribide Primary School

Bangladesh

2012 Construction of Gezani Primary School

Tanzania

2010 Construction of Shadashivbari Primary School Bangladesh

Donations to orphanages and help
with cleaning
We donate items
n e e d e d b yorphanages, clean
facilities, andinteract with thechildren.

Collection of PET bottle caps

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

Volunteer clean-up events

We pick up trash, cigarette butts and otheritems discarded near business offices andworksites.

Recognizing diverse values and respecting individuals

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

Human Rights Enlightenment (Education)

Commemorative backpack gift

We participate in events to collect usedbackpacks and send them to children
overseas.

©JOICFP

VOICE

Human Rights

Employment of People with Disabilities

In order to ensure that employees have a correctunderstanding of human rights, and are fully aware ofthem, we continuously provide education on humanrights, including during new employee training, rankbased training when people are promoted, and otheroccasions.

Based on the philosophy of normalization, theCompany actively employs people with disabilities, andsupports them to thrive in the workplace. Its ratio of
employees with disabilities was 2.33% as of March 31,
2019.

Human Rights Lecture

2.28%

Each December, as one of the events held during
human rights week, an outside lecturer is invited to givea “human rights lecture” in order to raise employee
awareness about human rights issues. The theme of thelecture is different each year. Topics of past lectures
have included approaches to creating comfortableworkplaces and measures to prevent harassment.

Social contribution activities conducted by the Cambodia Branch Office

We constructed and donated 20 new toilets to the SAKURA CAMBODIA-JAPAN FRIENDSHIP SCHOOL(TOMNOP ROLORK CHAS PRIMARY SCHOOL) which is located near the thermal power plant being constructedby TPSC (THAILAND) CO., LTD.’s Cambodia Branch Office.
There are approximately 400 students enrolled in this school, butsome toilets had become unusable due to the aging of facilities, andthere were not enough toilets compared to the number of students. In
response, we provided support for creating an environment wherechildren can learn with peace of mind by improving the sanitaryenvironment through the construction and donation of toilets.
Going forward, Toshiba Plant Systems & Services Group willcontinue to contribute to the development of local communities bothin Japan and overseas.
23

2014

2.19%

2015

2.06%

2016

2.29%

2017

2.33%

2018 (FY)

Establishment of Consulting Service on Human Rights

The Company established a consultation service onhuman rights such as sexual harassment and power
harassment, and is promoting the creation of anenvironment where each employee can work with peaceof mind. Both the Administration & Human Resources
Division and the labor union have consultation desks,
making it easy for employees to receive support. Issues
brought to the Company’s attention are addressedq u i c k l y, a n d t h e p r i v a c y o f p e o p l e w h o s e e kconsultation is protected.

Human rights lecture24SocialLabor Practices

Health and Safety Goals

Creating rewarding workplaces that emphasize employee health and safety(1)	‌Clarification of and compliance with health andsafety rules

Basic Health and Safety Policy

Basic work
operations
and actions

H e a lt h a n d s

Mentalhealthcare
promotion

uc

a ti

n

Reﬂect in instructions,manuals, andwork order forms

Do

Area inspection
before starting work

Safe work

Act

Ch

Worksite inspection
PatrolGuidance/correction
System audit

on

Sangen shugi emphasizes
being on-site to see whatis actually happening.

kecCheck/suggestion

T

Management systems*TBM: ‌Tool Box Meeting. A safety meeting held
at worksites prior to performing work. It
is called this because workers gather
near the tool box and have a discussion
led by the supervisor.
KY (abbreviation of the Japanese phrase kiken
yochi ): ‌S m a l l g r o u p a c t i v i t y a i m e d a t
preventing accidents by having
individual work groups grasp thecurrent work conditions to predict theinherent potential risks, establish
countermeasures and action goals prior
to performing work.

We aim for managers and employees to have “zero health impairments” by energizing workplacecommunication, promoting mental healthcare, and working to create comfortable and low-stress work
environments.
Stress checks, awareness and response

Re
g

ch e

Enhance knowledge of care
Rank-based
training, lecture

Im pr ov e

m ent

ck s

Self-careHighPromotion ofmental healthcare/ e n h an

ce me n t

Line careI n d u s t ri a

s tr

es

s

r
ula

❷ Safety Environment Competition

In order to raise awareness of the health,safety, and the environment, and ensure
proactive promotion of the activities, the Group
as a whole, including affiliates and partnercompanies, holds a “Safety Environment
Competition” each July. In FY2018, the event
was held on July 11, and began with a lecture by
the head of relevant Labor Standards Inspection
Office and reports on examples of safety andenvironmental management, and included
presentation of the “Safety achievement award”
and the “Environmental achievement award.”aPl

to prevent recurrencety“Safety sensory education” is aimed at reminding employees of theimportance of the basic actions and work operations for safety byproviding a virtual experience of dangers under conditions
approximating a real worksite environment while allowing employees tofeel how scary an accident or disaster is. The main curriculum is designed
to provide not only the experience to handle a variety of situations,
including sling wire severing, pinched fingers, hanging from a belt-typesafety harness, and electric shock, but also additional exercises aimed at
reproducing accidents that have recently occurred for training purposes.
Since the first being held in June 2007, “Safety sensory education” hasalready been held more than 190 times at worksites both in Japan andoverseas.

or health and safety
Rules fRisk assessment

Entrenchment of rules
and stringent
compliance

afe

ed

3.	We aim for a thorough safety management framework in accordance with our health and safety plan which details
the reduction of the potential risks for workplace accidents and harmful factors. With this, we ensure safe conditions
and safe activities, and we have set a target of zero accidents/disasters as our goal for occupational safety.

❶ Safety sensory education

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

Improve safety cycle Basic work operations
and actions
Establishment of rules

2.	We respect the discussion and participation of everyone involved in our business activities, and strive tocreate a safe and comfortable work environment as well as to improve the level of health and safety.

Example of Health and Safety Initiative(4)	Maintenance and improvement of the workplaceenvironment as well as disease prevention(4) Enhancement of health and safety education

1.	We have positioned health and safety activities as one of the most important management issues, and while wecomply with relevant laws and regulations, as well as the Company’s own rules and standards related to health andsafety, we also encourage all employees to work on improving occupational health and safety management systems.

5.	We invest appropriate management resources when implementing this policy and continue to make efficient
improvements of Basic Health and Safety Policy as well as health- and safety-related laws and regulations,rules, and standards by holding training sessions, drills, and other such activities to increase awareness.

(3)	Enhancement of health level by promoting
health management(3)	‌Continual improvement of occupational healthand safety management systems

The Company engages in business activities in accordance with our Commitment, which is “to be a
corporate group that creates abundant value and contributes to the lives and cultures of people around theworld through our power, industrial and social infrastructure businesses, based on respect for human rights.”
To achieve these ends, we place top priority on life, safety and compliance with the law in all our businessactivities while promoting safe and comfortable work environments and sound physical and mental health.

4.	We aim to create a comfortable work environment in which employees are subject to minimal fatigue andstress, believing the goal of occupational health is to promote sound physical and mental health.

(2)	Prevention of health impairments caused by overwork(2) Firm establishment of basic work operations and actionsY

On April 1, 2019, we amended the “Basic Health and Safety Policy” in conjunction with the change in the
Company’s Management Philosophy Framework.

(1)	Promotion of mental healthcare

・K

Health and Safety Initiatives

Health Goal: Zero health impairmentsBM

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

Safety Goal: Zero workplace accidents

Industrial physician/health staﬀ
c i anl p h ys i

i n st r

u c ti o

Consultations/advice/ns referral to outside
institutions

Understand and improve the workplace environment

VOICE

My participation in “Safety sensory education”———Voice of customers■ It was excellent! I could experience things hands-on that I normally can’t experience. I reaffirmed just how

much risk there is in our work.

■ Unlike deskwork, safety sensory education allows us to learn by seeing, hearing, and touching. It was great. There

are not many opportunities for such memorable education that sticks in your mind, so I am glad I participated.

Hanging from a belt-type safety harness

Catching a 20kg dummy with a safety net

25

Safety Environment Competition in FY2018■ I learned a lot by being able to experience dangers in a hands-on manner. Experiences that you can feel with your own

hands, such as the hands-on experiences with electric shock and the safety net, are things that I will really remember.
26

SocialDiversity-related initiatives

Together with Employees
Four Areas of Emphasis

We view diverse personnel and working styles
positively, and work on a global basis to create work
environments that lead to imagination andcompetitiveness for our businesses. Our personnel are ourgreatest management resource, and are the source of ourcompetitiveness as a company. We believe that getting
the most out of the abilities and unique strengths of eachof our valuable employees and continually energizingthem will lead to continual growth for the company.
Therefore, we set the four areas of emphasis of“Personnel training and utilization,” “Diversity-related
initiatives,” “Promoting workst yle reform,” and“Promoting health management.”

Diversityrelated
initiatives

Personnel
training andutilization

PromotingworkstylereformPromotinghealthmanagement

Personnel training and utilization

We have put in place a “Career Design System” which aims to train and utilize personnel from a medium- to longterm perspective. Superiors and the employees that report to them cultivate communication through interviews andthe Company’s operating performance is aided by superiors helping employees advance their careers while checking
on the direction of their employees’ development and utilization.

“Feedback meetings” that build relationships of trust between superiors and employees that report to them
The Company conducts personnel evaluations that treat employees fairly and impartially. The evaluations are basedon performance over a set period in accordance with assessment criteria. As a part of feedback through interviews
between superiors and employees reporting to them, assessments of performance, abilities, and attitude are
explained. In addition to increasing transparency and understanding, this leads to employees having motivation touse in their future work and to personnel training.

Training system
We develop employees by effectively combining OJT, OFF-JT, and self-development systematically.
OJT
The aim of OJT is to systematically increase one’s abilities by acquiring the necessary knowledge, technical skills
and business skills through work.
OFF-JT
The aim of OFF-JT is to provide systematic and specialized training away from the workplace, including rank-based
training, global training, specialized skill training, and training to acquire public certification, aimed at giving
employees knowledge, technical skills and business skills commonly required to carry out business.
Self-development
We offer opportunities for personnel to improve their qualifications and abilities. Such opportunities include voluntarylong-distance education and “family training” which promotes mutual self-improvement among workplace units.
Personnel Utilization and Training System

Training System

Interview

Employees desiring transfer, etc.

OJT

Career plan

OFF-JT

Feedback

Rank-based training
Global training

Health, safety andenvironmental training

Personnel treatment

Evaluation system
Personnel allocation
Pay and conditions system

Innovation training
Specialized skill
training

Training to acquire Other
public certification

Self-development

Career design

Re-hiring system
To support business plans, it is essential to pass skills down from one generation to the next and to allow
experienced employees to contribute. We have established a framework for our employees to continue to work
enthusiastically on the front lines of business after reaching the mandatory retirement age of 60, and the Toshiba
Plant Systems & Services Group Re-hiring System which incorporates incentive structures for employees to be activeon the front lines at worksites. Employees wishing to do so may renew their employment up until the age of 65.
Promoting employment for foreigners
The Company actively promotes the hiring of foreign nationals, primarily foreign students. In addition, we carry out
personnel exchanges with overseas subsidiaries, and as a global company we are striving to create workplaces where
personnel of diverse nationalities are active and able to thrive.
Promoting women in the workplace
The Company’s ratio of female employees is 7.0% (as of March
31, 2019). Although this ratio is low, female employees are
Average number of continuous years of employment for men and women (Units: Years)
working in a wide range of fields, including technical, sales, and
Men
Women
administrative positions. In addition, the Company is creating
25
21.8
21.9
21.7
mechanisms that allow female employees to thrive in the
21.5
21.3
workplace, including enhancing training programs in order to
20
18.5
18.4
18.3
17.9
17.4
increase the number of female employees in leadership roles.
The Company is also working to increase the number of women15
hired and improve the retention rate (the average number of
10continuous years of employment by female employees is 18.4
2014
2015
2016
2017
2018 (FY)years as of March 31, 2019) through its initiatives to support abalance between work, childcare and family care.

Promoting workstyle reform

Promoting workstyle reform
The Company is endeavoring to realize more flexible working styles, and is promoting the creation of workplaces
that accommodate employees with restrictions, such as childcare and family care responsibilities.
Efforts aimed at workstyle reform
The Company is shortening total hours worked through initiatives to level off workloads and improve businessprocesses in each workplace. In January 2019, we launched a work-from-home system on a trial basis, and in July
2019 we started allowing employees to take annual leave in hourly increments. By establishing these and otherinitiatives to help employees work more flexibly, the Company is pushing through with workstyle reform.
Supporting employees to balance work, childcare and family care
To support employees to balance work, childcare and family care, we have put in place flexible work systems that go
beyond what is legally required. In addition, we have posted a “raising next-generation support leaflet” containing
information on the Company’s various benefits and programs as well as public benefits, and a “family care support
leaflet” on the Company intranet for employees to view necessary information anytime.
Measures to support employees to balance work with childcare and family careChildcare leave

Shortened working hours to
Covers children through until elementary school graduation
provide childcare
Family care leave (for the
5 days a year per eligible personsick and/or injured)Paternity leave
5 days (within 6 weeks of spouse giving birth)

Raising next-generation
support leave
Family care leave (for theelderly and/or disabled)
Shortened working hours to provide familycare (for the elderly and/or disabled)
Family care leave (for theelderly and/or disabled)

10 continuous days (following birth by spouse, until child turnsone)
One year per applicable family member (up to a year of total
leave can be split into smaller periods without restriction)
No limit per applicable family member (until reason for familycare no longer exists)
5 days a year per applicable family member

Initiatives aimed at shortening total hours worked
Main leave programs
Free entry leave

Accumulated leave
Refresh vacation
Retirement trip vacation

27

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

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

Employees can accumulate and take up to a maximum of 20
days of annual leave, that would otherwise expire, for the
purpose of self-development, volunteering, treatment of nonoccupational injuries and diseases, family care, or childcare
Employees can take 5 consecutive days of vacation after 10
consecutive years of service, and then 5 consecutive days ofvacation after each 5 consecutive years of service thereafter (10days after reaching 25 years of consecutive service)
Employees can take 5-day travel vacation upon reaching
mandatory retirement at age 60

28

Ratio of women returning
to work after giving birth

Since FY2013

100 ％Initiatives through the
Hatsuratsu Work-life Level

The outcome of initiatives toreduce the total number of hours
worked is used as an indicator
called the “Hatsuratsu Work-life
Level.” Divisions that have done
well receive recognition, and are
given money to use forr e c r ea t i o n a l a c t i v i t i e s t h a t
involve the business unit.

SocialPromoting health management

Fair Operating Practices

Promoting health management
The Company is promoting health management in order to raise healthawareness in every individual so that they can be physically and mentally
healthy and perform at their best levels.

Ensuring fair, transparent and free competition and appropriate
business transactions

Health guidance from industrial physicians and nurses
For employees receiving regular health checkups, industrial physicians
and nurses check their health level and encourage them to receive medical
checkups, as well as provide necessary support and advice concerning diet,exercise, and lifestyle improvements.
In specific health guidance, employees set improvement targets forlifestyle habits and write up detailed action plans. A nurse provides support
for the detailed action to help employees achieve their targets in 6 months.

Initiatives for mental healthcare
Stress checks promote awareness of stress among employees. For
employees with high stress levels, an industrial physician interviews theemployee and provides guidance, aiming to quickly detect and help employeeswith mental health problems. In addition, the Company has established areturn-to-work support system for those who have been on leave.
Efforts to improve employees’ health literacy include e-learning
education, rank-based training, managerial training, as well as self-care andline care support from a clinical psychologist.
First Level
Prevention and health promotion

Second Level
Early detection, quick response

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

We provide fair business opportunities to suppliers, and prioritize doing business with companies thatcomply with relevant laws and regulations, take the environment into consideration, and have excellent
technology and quality.

Procurement Policy

We hold a firm belief that materials procured should be of superior quality and safety to meet each of ourcustomers’ needs. Our unique Standards of Conduct and Toshiba Group Procurement Policy govern and ensure that
our sourcing, contracting and purchasing activities are ethical, efficient and accountable while compliance to laws andregulations is met and all efforts are made to preserve the environment. We seek a wide range of partnerships withlike-minded companies who share with us the same corporate values of fairness, openness, and building long trusting
relationships, as we believe that together we can prosper.

Supplier Expectations

Third Level
Convalescence support

Year 5 training

Rank-based training

Stress checks

Employee satisfaction awareness survey
Line care

Managerial training

Comprehensive workplace inspections by managers
Interviews with clinical psychologists

VOICE

Voice of an employee using the childcare leave system and shortened
working hours to provide childcare

After taking childcare leave for approximately ayear and a half, I am now back at work taking
advantage of the shortened working hours system.
When I returned to work following childcare, I
found balancing work with childcare to be moredifficult than I had expected, so being able to use
the shortened working hours system has beensignificant for me, and I really appreciate having thissystem in place. With this system, I am able to adjust
my starting time and ending time to reduce myworking hours up to a maximum of two hours. Being
able to use it to suit my schedule is a big plus.
Because my child is still young, there were manytimes when my child became ill suddenly or had ahigh fever upon waking up. Some colleagues in mydepartment had used the shortened working hours
system, so they understood my situation andmodified my work, which gave me peace of mind.
I am very grateful for this, because no matter how
good the system is, I would not be able to takeadvantage of it if my colleagues didn’t understandmy situation and support me.
For the benefit of employees who will use thesystem in the future, it would be great if theCompany enhances the system even more andcontinues to create a workplace environment thatmakes it easy for employees to take advantage of it.

29

1.	‌Compliance with Laws and Regulations, Social Customs, Etc.
(1)	Ensuring compliance with the prevailing laws andregulations, including anti-trust laws, commercial
codes, subcontractor regulations, construction
business act, personal privacy laws, ordinance for
eliminating organized crime groups, etc.
(2)	P rohibition of bribery (any gift, payment,
consideration, financial or non-financial
advantage or benefit of any kind whichconstitutes a corrupt and illegal practice)2.	‌Considerations to Human Rights, Labor, Health and Safety
3. Environmental Considerations(1)	S u p p l i e r s a r e e n co u ra ge d to a d o pt I S O
14001-based environmental management
systems and to promote third-party certification.

(2)	S uppliers are encouraged to reduce or
eliminate use of potentially hazardous
substances and to utilize Green Procurement.
(3)	S u p p l i e rs a re e n co u ra ge d to p ro m ote
environmental protection activities.
4. Maintaining Sound Business Operations
5. Securing Excellent Product Quality
6.	‌Offering Goods and/or Services at Appropriate
Prices7.	Firm Delivery Commitment and Establishmentof Stable Supply Structure
8. Enhancement of Technological Capabilities
9.	C ontinuing Supply in Times of Unexpected
Circumstances

E sta b l i s h m e n t of W h i st l e b l owe r
System (Clean Partner Line)

Handling Anti-Social Forces and Our
PolicyVarious training programs related to complianceduring procurement are provided to officers to ensure
fair trading practices. In order to ensure compliance andfair transactions, we established a whistleblower systemfor our suppliers called Clean Partner Line, in January
2007. If any violation of the law and regulations shouldarise during business transactions, our suppliers notify
us. We establish more transparent relationships of
mutual trust with the suppliers, and develop soundpartnerships with the suppliers.

The basic policy for internal controls stipulates that
officers and employees of the Group shall reject any
relationships with anti-social forces that pose a threat tothe order and safety of civil society, and the entire Groupshall take a resolute approach to all such issues.
As a concrete measure, the Group has strengthened
collaboration, steadily implemented public relations
super vision training, worked to share and utilize
information related to public relations. The Group also
investigates the attributions of counterparties when
initiating new business transactions and has thoroughly
introduced organized crime group elimination clauses
into business contracts. In addition, we have built asystem that allows us to cooperate with externalorganizations such as police and corporate attorneys,
and to respond appropriately and in a timely manner toany approaches from anti-social forces.

Philosophy on Intellectual Property

In addition to complying with the Patent Act, theCopyright Act, and other laws and regulations related tointellectual property rights, as well as respecting thelegitimate intellectual property rights of third parties, we
use intellectual property rights to protect the outcomesof our technological activities, and contribute to society
by actively utilizing these intellectual property rights inour businesses.
30

SocialInformation Security

Consumer Issues
In order to deliver high-quality infrastructure and services to customers

Check

Monitoring and measurement(customer satisfaction, data from each process)Internal audit, ISO 9001 certification renewal (external audit)
Analyze data

Groups*1 CPL: ‌Abbreviation combining CL (contractual liability) and PL (productliability)
CPL Committee: ‌Committee formed to handle quality-related incidents
when a CPL incident occurs*2 CQO: Chief Quality Officer

ISO 9001 certification markWe have obtained ISO
9001 certification from
Lloyd’s Register Quality
A ssurance Limited, theinternational standard for
quality management
systems.

Evaluation and implementation of preventive and corrective measures

31

Plan

Privacy Policy

Identify personal data (create registry)
Risk assessment (create registry)

Check management
vulnerability

Quality management groups①Matters related to the prevention of insider trading

Construction → Delivery〉②Matters related to the handling of personal data
③Matters related to the handling of technological information

Design-DevelopmentPurchasing-Manufacturing〈

Conceptual Diagram of Personal Data Protection Management System

Management Review Meeting

Divisions

Affiliates

We have obtained the PrivacyMark certification from JIPDEC. This signifies that the Company is in compliance withall laws and regulations, as well as other standards related to the protection of personal data, in accordance with theStandards of Conduct. We have established a Personal Data Protection Management System in order to thoroughly
protect the personal data we handle. This system is implemented and used in our daily operations, and improvements
are continually made to the system based on improvements and reviews made by the internal and external audits.

Measures to respond to
emergencies (establish system)

Devise countermeasures

Do

Provide refresher training

Implement countermeasures· ‌Periodic inspections of
implementation status· Recognition of residual risk

Check

Handle complaints and consultations· Clarify response contact· Sincere response

Disclosure/penalty· ‌Compliance withdisclosure obligations· Fair handling

Conduct internal audit

Renew PrivacyMark certification (external audit)<Basic Elements>

Management Framework of Personal Data Protection Management System
President· Record· Documentation· Establish framework· Legal compliance

Customer・‌Product monitoringand measurement
・‌Management of noncompliant products・‌Corrective measures(products)

Contracts (contract specifications)・ Worksite environment
・ Infrastructure
・ Human resources<Clarify requirements>

Operation
managementof resources④Matters related to the handling of intellectual property right⑤Matters related to the handling of electronic information

Do

Quality Oversight Division

CQO*2

Staff in related divisions

Protection of Personal DataManagement Review (Continual improvement of Quality)

Formulate plans to achieve
quality targets

CPL Committee*1

Management Review (Continual improvement of Quality)

Inform entire company ofimportant quality-related items

Practices Committee

Heads of the sections

Technical Information

Quality Control Policy

Quality-related
Meeting

Act

President

Information on Management

Plan

Management Framework of Quality Management System

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

Implementation managers

Personal Data

Conceptual Diagram of Quality Management System

Information Security Committee

Management executives

Information
Other than Personal
Data Requiring
Stringent Management

1.	We engage in quality assurance from the customers’
point of view.
2.	We comply with relevant laws and regulations and contracts,
and respect the rights of customers and third parties.
3.	We establish and maintain a quality management
system which aims to deliver services, products andsystems that fulfill customer needs, and continually
improve their effectiveness.
4.	We ensure quality through effecting the participationof the entire group and all employees.
5.	We aim for essential improvement by investigating
the root causes of process failures.

Technical Information

Based on our Commitment of raising the quality oflife for people around the world through our power,
industrial and social infrastructure businesses,
ensuring progress that is in harmony with our planet,
and in accordance with the Toshiba Plant Systems &Services Corporation’s Standards of Conduct, we
aim to contribute to society by making quality ourhighest priority, ensuring product safety andreliability, securing a proper worksite environment,complying with legal regulations, and by providing
services, products, and systems that fulfill customer
needs. To this end, we have established the Quality
Control Policy as shown on the right.

Insider Information

Quality Control Policy

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

Information on Management

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

Implementation manager⑥Matters related to the business contracts⑦Matters related to issues other than ①-⑥

Quality Management System (QMS)
Overview and Management Framework

Management officer
Deputy Management officer

Company-wide Information
Security Management Review

Quality Management

Management Framework of Information Security(including Personal Data Protection Management Review)

Based on Commitment (our business philosophy) and Standards of Conduct, we implement effective
measures with respect to quality management, information security and the protection of personal data, andstrive to raise the level of customer satisfaction by continually improving these measures.

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

Personal data protection audit officer

Chief Risk-compliance management Officer (CRO)*1
Information Security Committee

Chief Privacy Officer (CPO)*2
Deputy Chief Privacy Officer(Convenes when personal data leakage orother incident occurs)

Information Security Liaison Council

Company-wide consultation contact

Personal data protection management promotion officer

Personal data protection division management officer
Personal data protection division manager
Personal data protection management implementation officer

Consultation contact staff

Handler of personal data

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

PrivacyMark

We protect personal data in compliance withJ I S , a nd ha v e o bta i n e d t h e Pr i va c y M a r k

Actawarded by JIPDEC to business entities which

Assessment and improvements to matters that need correcting

properly handle personal data.

32

Governance

Practice thorough compliance and operate properly

経営の透明性を高めるガバナンスの強化

Organizational Governance
Aiming to improve management transparency and effectiveness, and toincrease corporate value

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

Corporate GovernanceCorporate Governance Policy

Starting with the “Toshiba Plant Systems & Services
Corporation’s Standards of Conduct,” which is theC o m pa n y ’ s o r i g i n a l co d e o f co n d u ct , w e h a v ee sta b l i s h e d a co m p l i a n ce s y ste m t h ro u g h t h eestablishment of various rules. The basic objective of
our corporate governance is to ensure managementsoundness and transparency, to increase management
efficiency, and to maximize corporate value.
We have striven to further strengthen and enhance
our corporate governance, and have positioned thebuilding of good relationships of trust with stakeholders
such as shareholders, investors and customers as animportant management policy.
In addition, based on the purpose and spirit of the“Corporate Governance Code” established by the Tokyo
Sto c k Exc h a n ge , t h e C o m pa n y a i m s to rea l i ze
sustainable growth and medium- to long-term corporate
value improvement, and in order to clarify the basic
philosophy and initiatives of the Company with respect
to corporate governance, we have established “Our
Efforts Related to the Corporate Governance Code” aspolicies corresponding to all 78 principles, the full text ofwhich is disclosed on the Company’s website.

Corporate Governance System

The Company is a company with Board of Statutory Auditors. The Company has 11 Directors (including two
Outside Directors) and four Statutory Auditors (including two Outside Statutory Auditors). Through theirefforts, the Company is working to strengthen and enhance its corporate governance system, and is aiming toboost management efficiency and ensure transparency.

1. Board of Directors
The Board of Directors generally holds meetings once a month inorder to ensure that Directors are efficiently executing their duties.
As the highest management decision-making body, the Board of
Directors discusses and makes decisions on matters stipulated in laws
and regulations and the Articles of Incorporation, as well as otherimportant management matters. In addition, the Board of Directors
receives reports in a timely and appropriate manner from each
Director and Executive Officer regarding the status of operations, andeffectively and efficiently monitors and supervises the suitability andrationality of operations.
Moreover, the Executive Officer System has been introduced toquickly respond to rapid changes in the business environment as wellas competition with other companies by separating the businessexecution function from the management decision-making andsupervising functions.
2. Management Meeting
The Management Meeting is generally held once a week in order toensure quick decision-making and efficient operations.
At the Management Meeting, management policies and importantbusiness execution related to management strategies, etc., arediscussed and decisions are made.
3. Nomination and Compensation Committee
The Nomination and Compensation Committee, comprised of two
Outside Directors, one Outside Statutory Auditor and two Directors
appointed by the resolution of the Board of Directors, has been
established as a voluntary advisory body to the Board of Directors. This
Committee ensures a framework whereby Outside Officers are able tobe appropriately involved in, and provide advice with respect to matterssuch as the nomination of officers, as well as Directors’ compensation.
4. Board of Statutory Auditors
In accordance with the “Board of Statutory Auditors’ Rules,” theBoard of Statutory Auditors generally holds meetings once a month. At
these meetings, the Statutory Auditors exchange opinions and share
information with one another. In addition, reports about auditing
matters, etc. are received from each Statutory Auditor, and the matters
are deliberated and decided upon.
As an independent organization, in accordance with the auditing
Corporate Governance Structure

Nomination andCompensation Committee

AdviceSubmitreportstandards for Statutory Auditors, audit policy, annual audit plan, etc.
decided by the Board of Statutory Auditors, each Statutory Auditor
strives to deepen his/her understanding of business and proactively
collect information, and through the investigation of management
conditions and financial conditions, fairly and effectively audit theexecution of business by Directors. In addition, the Statutory Auditors
work closely with the Auditing Division and other divisions, request
advice from attorneys and other outside experts as necessary, andotherwise strive to bolster the function of the Board of Statutory
Auditors.
In addition, we have established a framework so that Statutory
Auditors accurately and in a timely manner understand the important
decision-making process and the status of business execution, and areable to offer advice and express their opinions as necessary. This
includes providing Statutory Auditors with the opportunity to attend
Board of Directors meetings, Management Meetings, and otherimportant meetings, in addition to regularly providing opportunities
for Statutory Auditors to meet and discuss matters with the President
and Chief Executive Officer (Representative Director).
5. Auditing Division
The Auditing Division was established as an organization responsible
for the internal audit function. Based on the plan for the fiscal year, theAuditing Division audits the business activities and accounting of theCompany’s various divisions and of group companies.
The Auditing Division studies and evaluates the effectiveness ofcompliance, risk management and governance processes of eachdivision, and the status of management activities impartially and froman independent position, from the standpoint of legality, rationality,and efficiency. The Auditing Division possesses the audit function toprovide opinions, advice, and recommendations aimed at making
improvements, and works closely with the Statutory Auditors andothers with respect to the overall audit process and shares information
related to audits.
6. Accounting Auditor
PricewaterhouseCoopers Aarata LLC, the Accounting Auditor,
performs statutory accounting audits and works closely with theBoard of Statutory Auditors to ensure the legality and appropriatenessof accounting practices.

General Meeting of Shareholders
Appointment / Dismissal

Board of Directors

Appointment / Dismissal / Supervision
ReportReportInstruction

Instruction / Supervision

Management Meeting

Divisions, Branch Oﬃces,
Executive Oﬃcers BusinessOﬃces, Administration Groups

Excerpt from the Corporate Governance report (June 20, 2019)https://www.toshiba-tpsc.co.jp/pdf/ir/or/pdf/corporate_governance_20190620.pdf

33

ReportReportAppointment /Board of Statutory Auditors
Dismissal /Audit
Supervision
ReportRepresentative Director

Instruction / Supervision

Group Companies

34

Appointment / Dismissal

Appointment / Dismissal
Audit

ReportAccounting Auditor
Audit

Cooperation

Auditing DivisionInternal Audit

Corporate attorneys, etc.
Advice /GuidanceGovernance
Policy and Structure of Risk Management and Compliance
We thoroughly comply with all laws andregulations, social norms, ethics, and internal
rules, and strive to improve management
efficiency and ensure management transparency.
In addition, we ensure strong compliancewith our Commitment, our Management
Vision, and the “Toshiba Plant Systems &Services Corporation’s Standards of Conduct,”which is the Company’s original code of
conduct. As a corporate citizen of the Earththat values the environment, human rights,
and harmony with local communities, we aim
to realize sound and high-quality management.
Furthermore, each year we determine
priority measures in our risk and compliancemanagement measures while taking into
consideration current changes in the businessenvironment. By pursuing these measures thatare common to the whole Company, we strive
to enhance compliance.

Whistleblower System

Policy on Disclosure of IR Information

Risk Management and Compliance Structure
Auditing Division

Audit report

President

ReportInstruction /AdviceCRO
Administration &Human Resources Division Report /Statutory
Auditors
Whistleblowing

Corporate
attorneys

Instruction

ReportWhistleblowing

Suppliers’ employees

Whistleblower System

Risk Hotline

Whistleblowing

Whistleblowing
Response

Board of Statutory Auditors Hotline

Whistleblowing

Divisions

Risk Compliancerelated Committee

Guidance / Support

Report / Deliberation

Associates

Whistleblowing Contact

Attorney’s Office

Whistleblowing Contact

Coordination

Division Responsible for Risk
Management and Compliance Matters
Coordination

Whistleblowing Contact *Independent from executive side

Response

Board of Statutory
Auditors

Investigate /Check

Relevant Divisions

Response

Risk Compliance
Committee

Submit report

Whistleblowing

Whistleblowing

Employees

Employees

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

Together with Shareholders and Investors

Investigate /Check

Message from Outside Auditor

Providing services responding to the changing times

Outside Auditor
Attorney at Law

Takashi Ishii[Biography]

April 2000	‌Registered as Attorney at Law
April 2007	‌Joined Japan Fair Trade
Commission (An Official with
Fixed Term of Office)April 2012	‌Re-registered as Attorney at
Law
August 2015	‌Attorney at Law, Outside
Statutory Auditor of theCompany (Present position)

I have interacted with many companies since starting my career as an
attorney. Based on this experience, at Board of Directors meetings I make sure
to proactively state my opinions about how issues that can have a major impact
on management are seen from the outside, such as whether materials related
to our debates are appropriate, and whether our discussions are being carriedout properly in the right way.
In addition, I recognize that the role required of me by the Board of Directors is topoint out issues in promoting business based on my expertise. For example, both
the Company and its parent company are listed on the stock exchange. Therefore,
one issue is how the interests of the shareholders besides the parent company,
which is a major shareholder, will be protected. Therefore, I understand that one
thing expected of me is to objectively monitor things such as whether transactions
with the parent company are appropriate, and whether there are inappropriate
provisions of profits, and to reflect such findings in the Company’s management.
I feel that the FY2019 Mid-Term Management Plan properly indicates a vision
for flexibly responding to the changes in the market, amid the changes insociety and the expansion of renewable energy along with the shift away fromcarbon. In order to survive as a sustainable company, it is important for theCompany to respond to the changing times. Going forward, we will facesignificant changes in the environment, and there will likely be a wide range ofdemands placed on us by society. If we can resolve social issues and expand
our earnings by providing services that respond to the changing times, we will
likely be able to grow further as a sustainable company.
35

Information disclosure is an important management
priority, and we recognize it is essential to appropriately
disclose information in order to obtain our stakeholders’
understanding.
To put this in practice, we quickly carry out timely

disclosure in accordance with laws and regulations etc.,
in addition to voluntarily disclosing information(including non-financial information) determined to beimportant for shareholders and other stakeholders.

Dialogue with Shareholders and Investors

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

Website IR information

Shareholder Newsletters

Basic Policy on the Profit Allocation

The Company works to return profits with the targetof a consolidated dividend payout ratio of
approximately 40%, while considering the optimalbalance between increasing corporate value throughmedium- to long-term growth and the return of profits.
Also, the Company effectively uses internal reserves tobolster its financial position, to prepare for futurebusiness development, and to flexibly respond tochanges in the business environment as well as otherde velopments. Taking changes in the businessenvironment, the Company’s financial condition, andother factors into consideration, the Company considers
carrying out share buybacks as a way of raising capitalefficiency and returning profits to shareholders.

Dividend Amount Trends
60Interim dividend

50
40
30
20
10
0

37.5
12.5

25※
FY201538(Yen/share)
Fiscal year-end dividend

40

42

20

21

19

20

21

FY2016FY2017FY2018

19

52
26

26
FY2019(Plan)Breakdown of FY2015 interim dividend: Ordinary dividend = ¥12.5,
Special dividend = ¥12.5

36

Company Data/Network (As of July 1, 2019)

Toshiba Plant Systems & Services GroupManagement Philosophy Framework
Company Name

Address of Head
OfficeRepresentative
FoundedEstablished

Paid-in Capital
Our Business
Number of
Employees

Toshiba Plant Systems & Services Corporation

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

Koichi Harazono,
President and Chief Executive Officer, Representative Director

Offices

Branch Offices
Branch Offices
Offices

FY2017FY2018(Millions of yen)

226,867

October, 1923

Ordinary income(Millions of yen)

19,093

20,23822,324

11,876,021,006 yen

Profit attributable to owners of parent(Millions of yen)

12,796

13,551

14,354Comprehensive income(Millions of yen)

15,07815,894

15,470Net assets(Millions of yen)

133,288

145,379

156,852

Total assets(Millions of yen)

244,407

256,003274,290

Net assets per share(Yen)

1,365.06

1,489.03

1,606.41

Basic earnings per share(Yen)

131.36139.11147.35Equity ratio

(％)

54.4

56.7

57.1

Rate of return on equity

(％)

10.1

9.7

9.5

Price-earnings ratio(Times)

12.37

16.48

13.32

Cash dividends per share

(Yen)

38.00

40.00

42.00

Dividend payout ratio

(％)

28.9

28.8

28.5

Cash flows from operating activities(Millions of yen)

700

16,726

10,189Cash flows from investing activities(Millions of yen)

△ 1,518△1,828△76,134

Cash flows from financing activities(Millions of yen)

△ 3,082△3,810△4,003

Cash and cash equivalents at end of year

(Millions of yen)

87,99699,28929,445October, 1938

Engineering, procurement, construction, trial operation,
Commitment
adjustments, and services for facilities and buildings
targetingpower plants, substations, public facilities and general industry
Committed
4,395 (Consolidated basis), 3,519 (Non-Consolidated
basis) to the Future of

Humanity and the Earth

The Toshiba Plant Systems & Services Group

commits
to being Officea corporate
group
that
creates Solid
Tsurumi Office (Head Office, Yokohama
City), Kawasaki(KawasakiCity),
Kawasaki
Square Office (Kawasaki City), Isogo Office(YokohamaCity),
Atsugi
Factory(Atsugiabundant value and contributes to the livesCity),and Atsugi
Technology Research & Development Center (Atsugi City), Atsugi Plant Equipment Control
cultures of people around the world through ourCenter (Atsugi City)
power, industrial
and social infrastructure
Fuchu Office (Fuchu City), Keihin Office (Yokohama
City), Hamakawasaki
Office (Kawasaki City)
businesses,
respect
for Kansai
humanBranchrights. Office
Tohoku Branch Office (Sendai City), Chubu
Branchbased
Office on(NagoyaCity),(Osaka City), Kyushu Branch Office (Fukuoka City)

Hokkaido Branch Office (Sapporo City), Shin-etsu Branch Office (Niigata City), Hokuriku BranchManagement
Office (Toyama City), Chugoku Branch Office (HiroshimaCity), PowerVision
Plant Systems West-Japan
Branch Office (Shunan City)
ExcellentCompany
capableof ﬂexibly
in the Market
City),
Iwate Office(KitakamiCity),responding
Mie Office (YokkaichiCity),Environment
Fukushima Office (Koriyama
Shikoku Office (Takamatsu City), Oita Office (Oita City), Kumamoto Office (Kumamoto City),
Okinawa Office (Urasoe City)
Kitakanto Office (Saitama City), Higashikanto
Office (Chiba City),
Office (Mishima City)
Standards
ofShizuoka
Conduct

Offices

FY2016

Net sales

Domestic Network
Offices, Factories

Highlights of Consolidated Financial Results

Consolidated Subsidiaries

Toshiba Plant Systems & Services Group places top priority on life, safety andlaw compliance. At the same time, we will act to build bonds of trust withsociety, including our customers and shareholders.

Toshiba Plant Systems & Services Corporation

Business Management (Regulations)

Domestic

Overseas● SHIBAURA PLANT CORPORATION● PT. TPSC ENGINEERING INDONESIA● ‌TOSHIBA ENGINEERING SERVICE CORPORATION● TPSC ENGINEERING (MALAYSIA) SDN. BHD.

● TPSC (INDIA) PRIVATE LIMITED● ‌KANSAI TOSHIBA ENGINEERING CORPORATION● Vegenova, Co. Ltd.

● TOSPLANT ENGINEERING (THAILAND) CO., LTD.

■ Net sales
226,867(Millions of yen)

232,570■ Ordinary income

244,239

19,093● TPSC (THAILAND) CO., LTD.

20,238(Millions of yen)

232,570

244,239■ Proﬁt attributable to owners of parent(Millions of yen)

22,324
12,796

13,551

14,354● TPSC US CORPORATION

Affiliates Using Equity Method Accounting■ ‌Toshiba Power Systems Inspection Services Co.,

● TPSC (VIETNAM) CO., LTD.

Ltd.

● TPSC PHILIPPINES CORPORATION

2016

37

2017

2018
(FY)

2016

2017

38

2018
(FY)

2016

2017

2018
(FY)

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

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