Torishima Report 2021
TORISHIMA PUMP MFG. CO., LTD.

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

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

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

Torishima Report 2021
Fiscal 2020 (From April 1, 2020 to March 31, 2021)

Torishima Core Values
To ensure that the Torishima Group is continually evolving

Solid business performance even in the
midst of the COVID-19 pandemic—
Torishima continues to reliably deliveron its mission and responsibilities as
an essential worker
President and CEO

Kotaro Harada

and adapting to changing times, we revised our mission
statement and vision in 2019, our 100th anniversary.
With “EVOLUTION” the keyword, we continue toprogress while also enjoying our work, as we
pursue business growth and social

Never lose the publictrust, even if monetaryloss proves unavoidable.

contribution.

Monetary losses can be reversed over time.
However, loss of trust can take much longer—even years—to reverse. This management
philosophy, which identifies trust as the mostimportant factor in business, has been passed
down unbroken as our corporate philosophy.

The Mission

Passion for our Products
and Services. Evolving tomeet the demands of anever changing world.

Message from the President

The Corporate
Philosophy

The Vision

In fiscal 2020, the entire world was turned

3.6 billion yen for operating income.

upside down by the COVID-19 pandemic.

Operating income was particularly

It has been said that 10 years of change

significant, reaching the highest in

occurred in just one year. Worldwide

Torishima’s 101-year history. This solid

inoculation efforts are picking up speed andperformance is due to Torishima’s ability to

optimism is growing in the market. Still,provide reliable pumping technology critical

TEAMWORK

variants of the virus continue to spread, andto society. I want to express my appreciation

it will be some time before COVID-19 is

to everyone involved in these areas, and to

Combining our skills to achieve
our common goalcompletely stamped out.

all our officers and employees for their strong
commitment. I will work to ensure thatIn spite of the situation, Torishima still

Torishima continues to deliver on its mission

managed to post strong results in fiscal

and maintains its responsibilities as a2020, with 49.1 billion yen for orders

provider of essential products and services.

DIVERSITY
Embracing diversity to achieve
success and maximize
our global presence

received, 50.8 billion yen for net sales, andContents
Message from the President������������� P.1

1

ESG

Meet Torishima���������������������������������� P.3

Environment����������������������������������P.10

Medium-Term Business Plan������������� P.4

Society�����������������������������������������P.13

New Head Office Factory������������������ P.7

Governance����������������������������������P.15

TOPICS— News in Fiscal 2020��������� P.9

Directors and Executive Officers��������P.18

Torishima Report 2021

PROFESSIONAL

CLARITY

Fulfill our duties andresponsibilities to provide
the best service possible

Working with integrity,transparency and sense ofsocial responsibility

ENTHUSIASMINNOVATION

Our success is linked toour passion and enthusiasm
throughout our organization

Never stop challenging toprovide creative solutions to
our customers

Financial Section Financial Data
from the Past 11 Years�������������������������P.19
Consolidated Financial Statements������P.21
Corporate Data���������������������������������������P.26

Torishima Pump Mfg. Co., Ltd.

2

Medium-Term Business Plan

Meet Torishima

CSV

Creating Shared Value
Torishima conducts CSV (creating shared value) management in which we help solve
society’s challenges while making a profit for the company. Based on our corecompetence in pumping technology, Torishima is enhancing profitability and providing
a competitive edge while creating value both for society and for itself.

Energy-Efficient Solutions

Providing Safety and Reliability

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

Our state-of-the-art technology ensuressafety under all conditions.

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

Offering well-proven expertiseand experience as an EPC(engineering, procurement,
construction) contractor

Projects
High-Tech
Pumps
4 Businesses
Centeredon Pumps

Contributing to a lowcarbon society throughthe use of renewableenergyService
Solutions

Maximizing the life span ofplants with integrated
service solutions

Renewable Energy andthe Environment

Looking ahead to a carbon neutral future by2050 as Torishima embarks on a new challenge“Beyond 110” Medium-Term Business Plan e a company that is indispensable toBsociety by continually improving our
products to meet the challenge of anever-changing world

It consists of two main elements. One is the continued

For more than a year now, much of the world has been

The other main element of the plan involves developing

in a perpetual state of lockdown. The COVID-19

new and innovative technologies. This represents

pandemic has shown humanity and the global

business through which we can contribute to society inenvironment to be far more easily threatened than wethe medium to long term.

development of our existing technological strengths toensure we have a commanding lead in those areas.
This represents business through which we canalready be contributing to society in the short term.

had imagined. In light of this realization, the world has
The Sustainable Development Goals (SDGs), which were adopted
by the United Nations in September 2015, are 17 major goals
comprising 169 specific targets to be achieved by 2030.
Torishima is taking action to achieve the goals through various
initiatives related to ESG (Environment, Society, and Governance),
including the provision of high-performance pumps that support
infrastructure. (The following pages of this report show the icons
for each of the SDGs that Torishima is contributing to.)Financial Highlights

Note: Fiscal years ended March 31.

Orders Received (millions of yen)
51,76842,233

48,82449,055

Operating Income (millions of yen)

Net Sales (millions of yen)
50,00045,381

48,154

47,12650,7871,257

FY2017 FY2018 FY2019 FY2020 FY2021(predicted)

FY2020:Due to being firmly established as infrastructuresupporting essential work, even during the
COVID-19 pandemic, the strong performance seen
last year has been maintained, particularly by theparent company.

Net Income Attributable to
Owners of the Parent (millions of yen)
3,353
2,183
854

2,700

1,220

FY2017 FY2018 FY2019 FY2020 FY2021

FY2017 FY2018 FY2019 FY2020 FY2021

FY2020:In addition to a significant increase in sales to meet
public-sector demand in Japan, larger-thanexpected high-tech pump shipments overseas
contributed to net sales in excess of 50 billion yen.

FY2020:As a result of increased revenue combined withsignificant reductions in SG&A expenses, such as
expenditures and allowance for doubtful accounts,
operating income was a record-high 3.6 billion yen.

(predicted)

Net Assets per Share (yen)1,240.33 1,270.43 1,226.56(predicted)

Cash Dividends (yen)32

1,422.14 1,497.00

25
18

543

(predicted)

FY2020:Net income also grew significantly due to aboveaverage non-operating income items such as higher
foreign exchange profits, insurance payments andother miscellaneous revenue.
Torishima Report 2021

3,600

7 *

18

21

18

FY2017 FY2018 FY2019 FY2020 FY2021

3

1,731

FY2017 FY2018 FY2019 FY2020 FY2021(predicted)

The first of our business focuses to contribute tosustainability alongside economic growth. This is being

society in the short term is our energy-efficiency

pursued via a green growth strategy for carbon

initiative, “Go Green with Pumps,” which was launchedneutrality by 2050. In October 2020, Japan also

in fiscal 2009. In recognition of our steady efforts, weannounced its pledge to go carbon neutral by 2050.

received an award in the Energy Conservation Grand

Every company in every industry and sector, no matter

Prize program in fiscal 2014. The key word these days

how large or small, is considering what concreteis “decarbonization,” and we will use our technologicalactions it can take to contribute to this effort.

innovations to achieve further energy efficiency in ourpumps. We will promote the spread of these Super

Since our founding, Torishima has been contributing to

Eco-Pumps as a means of significantly reducing powersociety by providing it with pump technology essential

consumption and CO2 emissions.

for daily life. However, as we embark on our second

52,000

3,591

begun taking action to achieve environmental

FY2017 FY2018 FY2019 FY2020 FY2021(predicted)* The dividend for FY2018 includes a 100th
anniversary dividend of 7 yen.

century of business, we are taking this commitment to

The second business focus is technology for speciallyanother level. Based on a long-term mission for 2050

designed pumps to mitigate heavy flooding. This wasto help make society more carbon neutral while

introduced to the market around fiscal 2009 to help

achieving business growth, we have established aaddress climate change. We have been receiving

clear vision for making Torishima a company

increasing orders over the years for products using thisindispensable to society.

pump technology. This growing popularity is taking
place against a backdrop of increased flooding in pecific targets for achievementS
by fiscal 2029: Beyond 110

recent years, and more orders are expected for new

In 2049, the year before the world’s 2050 carbon-

era of rapid economic growth, and the next 20 years

neutral target, Torishima will mark its 130th

will see much of this infrastructure passing the 40-year

anniversary. But for 2029, twenty years before that andpoint in its lifespan. Pumping stations are no different.

our 110th anniversary, we have set a major milestone

We will contribute to the construction of safer andtarget. This is our “Beyond 110” New Medium-Termmore reliable infrastructure through cutting-edge

Business Plan.

technology, which addresses the critical social issues

pumps to replace aging units. A great deal of
infrastructure in Japan was built during the country’sof deteriorating infrastructure and climate change.

Torishima Pump Mfg. Co., Ltd.

4

Medium-Term Business Plan
Beyond 110: A Medium-Term Business Plan for a Long-Term Vision

Beyond110
2021–2024 (HOP)

Business contribution to society in the short term

Torishima’s
110th
anniversary(cultivating a commanding lead for our existing technology)(1) Boost Energy-efficiency Initiative with the Super-Eco Pumps(2) Enhance Technology for Specially Designed Pumps to Mitigate Heavy Flooding(3) Promote Smart Maintenance Service Based on Data with TR-COM(4) Develop Pumps to Handle Ammonia

Business contribution to society in the medium-to-long term
(developing new and innovative technologies)(5) R&D for Hydrogen, CO2 Pumps

Launch Products for This New Market(6) Invest in Wind Power Business

Maintenance Services Including Offshore
Wind Power Plants

2030– (JUMP)

our dream of making Torishima a company

wind power. The Japanese government has committed

indispensable to society will certainly become a reality.

itself to a target of 90 GW of offshore wind power

The future of Torishima depends upon the growth andgeneration by 2050. When combined with onshore winddevelopment of each and every employee.

power, the total power generated will be 130 GW, whichsustainable

represents an extremely large market expansion.

In March 2021, our new head office factory was

corporate value

Torishima is already involved in wind power-related

completed in Osaka, Japan, providing us with a new

through products

maintenance business through EOS Engineering &setting in which to foster employee growth andService Co., Ltd. (EES), in which we have a 49% equity

development. Based around a concept of

stake. We plan on making it an even greater focus“togetherness,” this new facility creates an integrated

moving forward. We will expand our business in thisspace that brings the manufacturing site together witharea via an alliance of human and financial resources

sales, technology, production, and administration underwith Japan Wind Development Co., Ltd., one of the

one roof. This space will facilitate strong synchronizationindustry’s largest wind power developers and an EESof employee goals and actions with the new medium-

joint venture partner. By combining Torishima’s

term business plan and faster completion of the PDCA

maintenance-related technology and expertise as acycle, thereby enhancing the feasibility of the businessrotating machinery manufacturer with that of these twoplan. This, in turn, will produce an “EVOLUTION,” whichand services that
address societal
challenges

Maximizing employee energy, ESG managementwind power-related specialist companies in order tois distinctively Torishima as we do our part—as asophisticated technology, and, as one of the companies

achieve the greatest synergy possible, we will position

company indispensable to society—in realizing a carbon

with the requisite technological foundation, we areourselves to capitalize on future market expansion.

neutral world by 2050.

researching how to enhance this technology further in
expectation of future market expansion.

The third business focus is TR-COM, a rotating

Our plan for these two areas of business contribution tosociety in the medium-to-long term is to have a firm

equipment monitoring system. Since its release in fiscal

These are the four business focuses which we havefoundation in place by 2024. This will be followed by the

2018, the number of orders for this system has been

already begun and which we are continuing to

introduction of practical applications in fiscal 2025,

steadily growing. Many prominent companies, including

strengthen in order to contribute to society in the shortfollowed by full-scale business expansion from fiscal

major power companies and steel manufacturers, haveterm.

2030 onward. On the right are the numerical targets for

installed this system for its unparalleled ability to detect

the Beyond 110 New Medium-Term Business Plan,

potential problems at an early stage. We have already ursuing R&D focused on the realizationPof a hydrogen-based society

centering on the specific initiatives we will pursue in thefrom visiting pump facilities. And a shrinking workforce isWith regard to contributing to society in the medium-to-

We are also more committed than ever to ensuring ahindering young trainees from receiving technical training

long term, which is the other core element of our

return for our shareholders, one of our most importantfrom experienced employees. We want to facilitate DX

business plan, our first area of focus is on developing

stakeholder groups. Although our policy has been tothrough TR-COM’s data-based smart maintenance,hydrogen technology that will facilitate the achievement

provide stable dividends with a payout ratio of 30%

thereby enabling more efficient inspection andof carbon neutrality. On Earth we have access to an

regardless of company performance, moving forward

maintenance of customers’ pump facilities. We areinexhaustible supply of hydrogen, which can be

we will put in place a more secure earnings structure

excited about the work we are doing on this system, as we

produced from a variety of resources. It is extremelythat will allow us to continue providing stable dividends

are keen to see how it will continue to evolve in the future.

energy-efficient and produces zero CO2 emissions. It iswith a total payout ratio, including treasury sharetouted as being a true “dream fuel”; however, it must be

acquisition, of at least 40%.

COVID-19 situation has prevented maintenance staff

5

The second business challenge we are working on is

Expanding— Underlying foundation —accumulated a great deal of data via TR-COM. The

Numerical Targets of the Beyond 110
New Medium-Term Business Plan (Billions of yen)
Net sales

converted into its liquid form because it is difficult topromising resource with great potential for next-transport and store in its gaseous form. This is wheregeneration energy production. A number of projects inthe demand for pumps arises and, hence, where

this area are already underway both in Japan andTorishima is focused. Liquid hydrogen is difficult tooverseas, and this has resulted in a good deal of interest

handle, as it requires a temperature of -259°C, which

It goes without saying that employees are needed toand inquiries about Torishima pumps. Developing

creates a number of hurdles that must be overcome, but

pursue our various initiatives. Whether or not we arepumps capable of handling ammonia requires

we believe that the potential benefits are significant

able to realize this plan and, through it, make an even

 aximizing employee energy—Mthe other foundation of Beyond 110

Ordinary income

Operating income

Net sales

Operating income/Ordinary income

800

56

60

or more

50

46

600

short, medium, and long term.

Finally, we are exploring the use of ammonia as a

Torishima Report 2021

greater contribution to the world depends on ourpeople. If we can maximize the energy of all employees,

2025–2029 (STEP)

 X in the form of TR-COM-driven smartD
maintenance to expand service solutions
businessenough to justify the full investment of our R&D resources.

508
471

400

44

or more47

600

or more

550

50

40

36
30

20

12 13

200

10

0

0

FY2019FY2020resultresultFY2024FY2029(predicted)(predicted)

ROE
FY2019resultFY2020resultFY2024(predicted)

FY2029(predicted)

1.6%

9.5%

8.5%

8.5% or more

Total payout ratio
FY2020resultFY2024(predicted)

FY2029(predicted)

26.8%

Target of 40%

40% or more

Torishima Pump Mfg. Co., Ltd.

6

New Head Office Factory
State-of-the-Art Building Is Green and Disaster-ReadyAs the nerve center of Torishima, the new head officeregistering 6+ on the Japanese seismic intensity scale.

factory was designed to keep people safe and secure:The building exterior is also strong enough toto protect employee lives and property in times ofwithstand a major typhoon. And with backup water

disaster and ensure that we continue supporting ourand electricity supply facilities, the new head officecustomers’ business at all times. For example,

factory can continue functioning fully during disasters.

earthquake resistance is such that facilities can

As well, dramatically advanced energy efficiency

continue operating even in the event of an earthquake

makes it environmentally friendly.

LED lighting is controlled by ambient
brightness and motion sensors

High side windows contribute natural
sunlight and natural ventilation

Emergency Generator
Open space

Emergency generator provides
backup electricity in case of
power outages(enough power for about 2 days
continuous operation)

Strong exterior can withstanda major typhoon

OfficeEarthquake resistance canwithstand an earthquake of
6+ seismic intensity

Hall, Office

Training Center

In-house water supply in caselocal water supply is cut

Factory
Water Tank

Stairwells and restrooms are at the east and west
ends of the building, reducing thermal load and thus
lessening air temperature fluctuations in offices

Desiccant air conditioning system (controls temperatureand humidity separately for better energy efficiency),
external air volume control based on CO2 concentration

The large hall can be used
for anything from
employee gatherings todaily free-use space

New Head Office Factory—
A Habitat for Evolution
Employees are Torishima’s most valuable asset. That’s

office floors creates a spacious, open feeling.

why we provide an environment that maximizes each

The split-level, no-wall floor plan creates unity byindividual’s unique personality and talents. The latest

eliminating “walls”: both the physical structures

example of this is our new head office factory.

between departments and the mental barriers among

Following five years of planning and construction since

employees or between employees and management.

initial concept in 2016, it was completed in April 2021.

This has made movement and interaction between

This distinctive building integrates factory and office:departments easier than ever, and created a

the first and second floors are factory space, the third

comfortable, efficient space that has boosteda training center, and the fourth to sixth office space.

employee motivation.

A triple-height ceiling encompassing the center of the7

Torishima Report 2021

In the training area,
customers and young
employees can learn
about pumps

Eliminating walls
creates a senseof togetherness

The factory produces
mainly rotors, which are at
the core of high-pressure,high-speed pumps

Torishima Pump Mfg. Co., Ltd.

8

TOPICSNews in Fiscal 2020

Environment

METI Selects Torishima As Global Niche
Top 100 Company

We also recently developed

Japan is renowned for its meticulous, sophisticatedthat automatically collects

manufacturing prowess. An example of this is

information without needing a

Torishima’s large pumps for seawater desalination,

person to patrol machinery

which earned us a selection by Japan’s Ministry offacilities. The many requests— Philosophy —Economy, Trade and Industry (METI) for its 100 Global

from customers led to the

Niche Top (GNT) Companies. The GNT recognizes

development of this device and, subsequently, morecompanies for continuous technological development

convenience for them. Installed in high, dangerous

and management efforts.

places and other locations that are difficult to patrol,

Through Torishima pumps and other eco-friendly
products, we supply environmentally sustainablesystems that are engineered to enrich living
environments everywhere. We conduct production
activities so as to be in harmony withenvironmental demands, and we offer productsthat have minimal environmental loads. In this way,
we are working to bring about developmentally
sustainable societies that can support a healthy
global environment well into the future.

t-Gateway, a permanently
installed data gathering device

t-Gateway can dramatically reduce the workload ofEver since the late 1960s, we have supplied countlesscustomers. As it evolves and offers greater accuracy ofpumps to seawater desalination plants, mainly in thedata analysis, t-Gateway will allow us to provide

Middle East and South America, as well as Australia

services available nowhere else and thus further boost

and other nations. With a growing demand in recent

customer satisfaction.

years for plant energy efficiency, we are developing
reverse-osmosis (RO) seawater feed pumps that meetcustomer needs while offering the ultimate in highefficiency. METI’s GNT selection of Torishima is

Torishima Delivers 56 Pumps to
National Project in Egypt

testament to this success. This

Egypt has been building new infrastructure tohonor will spur us on to evenaccommodate an increasing population and economic

greater technologicaldevelopment. An example is the Bahr Al-Baqar

advancement and toTreatment Plant, to which Torishima delivered 20 water

manufacturing pumps thattreatment pumps in June 2020. The construction ofcontribute to solving the world’s
water shortages.

RO seawater feed pump

this water treatment plant is a major national
government project and a key part of a development
program in Egypt’s Sinai Peninsula. Impressed with

TR-COM Wins 2020 TPM Excellence Award;
t-Gateway Monitoring Service Launches

Torishima’s prompt delivery of 20 high-quality large
pumps to the project just 10 months after ordering,
contractors ordered a further 36 pumps for another

TR-COM allows users to remotely monitor thepumping station. Torishima is proving to be aoperational state of a variety of rotating machinery

dependable partner in Egypt’s infrastructuresuch as pumps, motors, fans, and compressors.

development.

Although we have received a steady stream of orders
for TR-COM since its release in fiscal 2018, ourcustomers have come to appreciate its benefits evenmore since the start of the COVID-19 pandemic.
TR-COM helps us provide high-quality pump service
solutions. We have also expanded to 10,000 Hz theavailable frequency range that TR-COM can pick up,
and we have accumulated large amounts of data. Bothof these have made it possible to carry out advanced
analysis and normally difficult failure prognoses. This
success of TR-COM was recognized in August 2020
with a 2020 TPM Excellence Award from the Japan
Institute of Plant Maintenance (JIPM).

9

ESG

Torishima Report 2021

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

Torishima water treatment pumps being installedat the Bahr Al-Baqar Treatment Plant

Torishima
Environmental Policy— Activities —To put the foregoing philosophy into practice,
we undertake the following activities:
1. We develop and supply highly efficient,environmentally friendly pumps and provide
maintenance services for them in order tocontribute to customers’ energy savings;
2. We develop and supply wind power andhydropower generation systems that use
natural energy sources. This contributes to a
reduction of CO2 emissions;
3. We aim to be carbon neutral by fiscal 2029
through the use of energy saving methods andgreen power in running plants and offices;
4. We seek to preserve natural resources, reduce
waste, recycle, and properly manage chemical
substances throughout our production activities,
based on environmental assessment results;
5. We strive to reduce our carbon footprint
throughout the entire supply chain by
informing suppliers of our environmental policy
and obtaining their understanding;
6. We comply with environmental laws,
regulations, and other applicable obligations.
We also formulate and comply with our own
in-house rules;
7. We continually strengthen our environmental
management systems in order to raise
environmental performance.

Aiming to Be Carbon Neutral
Revisions to Our Environmental Policy
In response to global movements towards making
the world carbon-free, such as the Paris Agreement
and the Japanese government’s proclamation to
make the country carbon neutral by 2050, theTorishima Group is clarifying its stance by revising its
Environmental Policy this fiscal year with thefollowing details.
 e aim to make energy usage in our factories and• W
offices carbon neutral by fiscal 2029, the final yearof our Beyond 110 Medium-Term Business Plan.
• 
We will strive to reduce our environmental impact
throughout the entire supply chain.

Future Environmental Improvement Plans
By strictly conserving electricity and installing energyefficient equipment, we aim to reduce electricity
consumption, and shift to green power, eventuallyachieving 100% usage for factories and offices.
Saving energy and increasing green power ratio

Energyconsumed

Green power
ratio

100%

11%
2020
(result)

2021(plan)

Gas, kerosene, etc.
Electricity at existing factory
Electricity in offices2029(goal)

Green power at new factory
Green power at existing factory
Green power in offices

Torishima Pump Mfg. Co., Ltd.

10

1. Reducing Energy Consumption

Achieved ZEB Oriented Certification

1. Save energy through visualization of electricity
consumption
2. Shift to electricity from utility gas, kerosene, andgas oil
3. Reduce CO2 by switching company vehicles to
HVs and EVs
4. Improve loading efficiency of products shipped out
5. Establish method for measuring and assessing
CO2 emissions throughout the supply chain

The new head office factory has been certified as ZEB
Oriented. A ZEB (Net Zero Energy Building) aims toprovide a comfortable room environment while alsoachieving net zero energy consumption for its annual
primary energy input and output. With recent
developments such as the focus on SDGs (Sustainable
Development Goals) and the need to further reduce energy
consumption, the definition of ZEB has been expanded toinclude a new class of building called ZEB Oriented. ZEB
Oriented refers to buildings with a total floor area of
10,000 m2 or more that have achieved an energy
efficiency rate for their specific application but that use
unevaluated technologies.

2. Expanding Environmentally Friendly Business
1. Make Torishima products even more efficient(Super Eco-Pump, others)
2. Expand sales of pumps for renewable energy(biomass power plants)
3. Develop pumps for new fields (hydrogen, ammonia)
4. Strengthen alliance with Japan Wind Development
Group to invest capital and human resources in
the wind power business

The new head office factory uses ingenious ways toreduce energy consumption by more than 40%.
It achieves this through building plans such as eaves on
the south side and stairwells, restrooms, and storage atthe east and west ends of the building where airtemperatures fluctuate most. It also adopts state-of-theart technologies such as external air volume control basedon CO2 concentration, a natural ventilation system, and adesiccant air conditioning system.

3. Reducing Waste, Other Actions
1. Revise our environmental management structure
to vitalize environmental activities
2. Formulate thorough but intuitive guidelines forseparation of waste
3. Study ways to increase recycling rate of plastic
garbage‌2. Initiatives for Reducing Environmental Burden
in Production Activities
1 Saving Resources and Energy
In fiscal 2020, total CO2 emissions from the head office
factory was down 11.5% year-on-year, and CO2
emissions per production unit also decreased by 4.9%.
CO2 emissions and CO2 emissions per production unit
Per production unit: (kg/1 million yen)

t-CO2
4,270
4,000

4,215

3,937

3,000
115.4
2,000

111.5

101.0

Down
4.9% 4,010

200
150

Down
11.5%
98.7

100

1,000

50

0

0

FY2017FY2018FY2019FY2020Per production unit: (kg/1 million yen)
1.0

30.0

29.4

0.79
30.6

0.70
26.4

Up
8.6%

0.76

Up
16.7%

0.8

30.8
0.6
0.4

10.0

Design Primary Energy Consumption of this building: 41% reduction
Issued January 25th 2021
Third party certification based on notification by the Ministry of Land,
Infrastructure and Transport.

CO2 reductions through Torishima’s environmentallyfriendly products and services
万t-CO2
70

54.8

0.5

0.3

0.4

0.4

8.6

7.7

0.6
0.5

7.6

Input

Torishima head office factory

Energy consumption,
converted into crude oil (year-on-year)

2,792kL (down 4.8%)
Gas oil 0.2%
Utility gas 5.1%

Electricity 93.4%

60.0
7.1

0

FY2017FY2018FY2019Waste per production unit

10

as by servicing customers’ Torishima products, such

0

46.7

48.1

FY2020FY20189.0

FY2019FY2020Wind power systems

Mini/micro hydropower systems

Servicing boiler feed pumps and other
Torishima products at our service facilities(down 20.3%)

Waste

PRTR Class 1-designated chemicals released
and transferred

6.0
FY2017(down 17.2%)

0.0

In fiscal 2020, the total amount of discharged andtransferred chemical substances covered by the
PRTR (pollutant release and transfer register) system
in Japan decreased by 6.8% year-on-year.

51.9

High-efficiency pumps

37,644m3
Tap water: 18,348m3
Industrial-use
water:

3 Reducing Discharge of PRTR Class 1

13.1
0.9

12.0
44.9

Water consumption (year-on-year)

0.2

Tonnes15.030systems, and mini/micro hydropower systems, as well

Torishima Report 2021

53.8

56.6

40

pumps, Eco-Pumps, and large pumps), wind power

to customers’ energy savings.
11

50

20

restore them to their original efficiency, we contributeyear-on-year. However, waste increased by 16.7%.

2 Reducing Waste
In fiscal 2020 at the head office factory, the amount ofwaste per production unit was up 8.6% year-on-year,
and the amount of waste also increased by 16.7%.

0.80

60

as boiler feed pumps, at our service facilities toour target for CO2 emissions with a decrease of 4.9%

Kerosene 1.3%

-Designated Chemicals

products such as energy-efficient pumps (boiler feeddevelopment to disposal. In fiscal 2020, we achieved

Waste per production unit and total waste

The new head office factory is powered 100% by
green energy (power generated by renewableenergy sources) supplied by the Japan Natural
Energy Co. Ltd. Our new head office factory has
therefore achieved carbon neutrality.

By developing and supplying environmentally friendly

burden at every stage of activities, from productCO2 emissions from head office factory (t-CO2)

Tonnes40.0

Making Power 100% Green

1. Torishima’s Environmentally Friendly Products
and Services

Torishima does all it can to reduce the environmental

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

20.0

Status of Fiscal 2020
Environmental Objectives

Energy Consumption and Input

10.3
1.1

9.9
1.1

5.9

5.6

3.3

3.2

FY2017FY20183.0
0TolueneXylene

Down
6.8%

7.8

12.2
1.0

OutputTorishima head office factory

CO2 emissions (year-on-year)

4,010t-CO2 (down 4.9%)
Waste (year-on-year)

30.8tonnes (up 16.7%)
Recycled resources (year-on-year)

1,087tonnes (down 15.5%)

7.3

4.4

3.9

FY2019FY2020Ethylbenzene

Torishima Pump Mfg. Co., Ltd.

12

ESG

Society

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

JAXA requested this visit to Torishima to tour the
manufacturing site and discuss pump technologies.

Customers
Long-term Trust

Employees

The request followed on-site pump maintenance that

Employment,
Human Resource
Development

Torishima conducted at JAXA in 2020.

Relationship with Communities
 orishima Hall: An Arts and Culture Theater
Tin Takatsuki
Torishima’s head office is located in the municipalityof Takatsuki in Osaka Prefecture. In March 2023, theSuppliers,
Business
Partners

Stakeholder
Engagementcity is scheduled to open the Takatsuki Arts Theater,a new culture center to replace the former Citizen’s

Communities

Hall. The centerpiece of this facility, and destined toContribution toSociety

become a household name among local residents,

Fair Dealings

will be a 1,500-seat main theater called Torishima

Shareholders,
Investors

Hall, following our company’s selection under aAppropriate Disclosurerole of contributing to local arts and culture as anaming rights agreement. Torishima will continue its
good corporate citizen of Takatsuki.
Members of JAXA’s research team tour Torishima’s factory

Relationship with Customers
With the pandemic reducing Torishima’s

Relationship with Business Partners

opportunities to meet in person with customers, ourTo maintain a good relationship with oursales staff and engineers have been increasingly

subcontractor partners, Torishima selects suchinteracting with them online in meetings and web

partners on the basis of transparent and impartial

seminars. We will continue to pursue greatertransactions. We also seek to establish equal

customer satisfaction by meeting their needs withpartnerships with them while complying with all

higher-value-added products and services.

related laws and regulations.
In order to improve the level of occupational safety
and health at both Torishima and our subcontractor
partners, we hold a variety of events tailored todifferent workplaces and aimed at eliminating
workplace hazards and accidents. These include
joint Torishima–subcontractor occupational safety
and health meetings held at manufacturing sites,
safety conferences at sales offices, and hazard
prevention workshops at construction sites.

A web seminar

13

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

131 cases

Number of research grants

JAXA Researchers Visit Torishima
In March 2021, four research and development

Since fiscal 2020, we have held financial results

Number of scholarships

personnel from the Tanegashima Space Center ofbriefings for institutional investors and analysts online.

the Japan Aerospace Exploration Agency (JAXA)

We also do everything possible to release company

visited Torishima. JAXA uses Torishima water

information in a timely, fair manner so that shareholders

transmission pumps. These pumps are used forand investors can get a deeper understanding of our

When we constructed our new head office factory,

pumping water to cool the flame deflector, which

corporate value and our management plan for

we also improved the perimeter walls by planting

deflects the high-temperature gas ejected during

sustainable growth. Our efforts include shareholder

trees and shrubs along them. This has created arocket lift-off, and for pumping water in case of an

newsletters and the Torishima Report.

more pleasant path for locals who travel daily along

Torishima Report 2021

After

Relationship with Employees
Employee Education
Torishima actively offers educational opportunities
and support, such as providing technical training on
pumps and on-the-job training for new employees.
We also help employees obtain a Professional
Engineer qualification or another national technicalqualification. In addition, we provide distance learningand seminars by outside organizations to boost
employees’ skills. We are constantly updating thecontent of distance learning and expanding e-learning
course offerings, all with the goal of giving employees
opportunities for a wide-ranging learning experience.

Diversity
Artist’s rendering of Takatsuki Arts Theater (north side)

Relationship with Shareholders
and Investors

accidental fire.

Before1,326 students(Total from 1981 to fiscal 2020)

Making Roadsides Greener

the roads around our facility.

For Torishima to grow sustainably in a global market,
personnel diversity is a must-have. Torishima actively
hires non-Japanese staff and works to foster
employees with a global perspective, so that we canstrengthen our competitive edge in the global market.
The percentage of non-Japanese nationals in theTorishima Group was 44.7% (as of March 31, 2021.)
We also provide employees with support for raisingchildren. In addition to an in-house daycare center, we
strive to create an environment conducive toemployees taking maternity leave and parental leave.
As a result of such measures, in 2017 Torishimareceived the “Kurumin” mark of certification from the
Osaka Labor Bureau of the Ministry of Health, Labor,and Welfare in recognition of the various ways in which
Torishima supports employees in balancing work andchild-raising responsibilities.
Torishima also actively hires people
with disabilities. In fiscal 2020, thepercentage of employees withdisabilities at Torishima was 2.57%.
Our goal is to be a company with avibrant work environment where all“Kurumin” markemployees find their work rewarding.

Torishima Pump Mfg. Co., Ltd.

14

ESG

To grow sustainably and raise corporate value in the medium tolong term, Torishima is strengthening its corporate governanceand its framework for risk management, internal control, J-SOX
compliance, and other items.

GovernanceCompliance Structure
The accounting auditor cooperates with the Audit

Corporate Governance Structureand Supervisory Committee and the Internal Audit
Department to efficiently conduct effective audits

Since June 26, 2015, Torishima’s corporate

while exchanging information and views. The Internal

governance structure has included an Audit andAudit Department, which is independent fromSupervisory Committee. Under this structure,business operations, conducts internal audits fromdirectors who are members of the Audit andan unbiased perspective and with a focus on the

Supervisory Committee are given voting rights on theefficiency, effectiveness, and legality of business

Board of Directors. This strengthens the supervisory

operations. It also audits overseas Torishima Groupfunctions of the Board of Directors and enhances

companies in light of the globalization of Torishima’s

Torishima’s corporate governance structure.

business activities.

Three independent outside Audit and Supervisory

For the future, Torishima aims to raise corporate

Committee members provide insightful advice to thevalue by increasing the effectiveness of the Board of

Board of Directors. Each Committee member has

Directors. We will also enhance management ofspecific expertise in the field of business, legal

domestic and overseas subsidiaries in an effort toaffairs, or accounting. Their input contributes to thestrengthen governance.

Torishima’s Governance Structure
Company Units

General Shareholders’ Meeting

Organizations in Charge of Conducting BusinessSelection/
Supervision

Opinion Statements(on nomination andcompensation of directors)

Appointment/
Dismissal

Suggestions/
ReportingBoard of Directors(all directors)

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

Collaborating

Appointment/
Dismissal

Accounting
Auditor
Auditing

Collaborating

President

Collaborating

Instruction

Executive Officers
Committee

Instruction

Risk Management Committee
Safety and Health Committee

ReportingToshimasa Iue

Please give us your thoughts on matters such as
Torishima’s Board of Directors and governancesince you were appointed a director in June 2020.
I remember that my first impression was feeling a sense of easeand relief that Torishima has hired several foreign nationals inmanagement. Diversity is an important—yet difficult toachieve—aspect of corporate governance. Upholding its
corporate vision of being a company indispensable to society,
Torishima’s lifeline is the trust of stakeholders and the market.
This strong trust has been earned thanks to a basic stance of
doing its job with sincerity and integrity under the strong
leadership presence of the company president. I believe this is
the foundation of Torishima’s governance.

Guidance/
AdviceWhat is your assessment of the effectiveness of theBoard of Directors?

Auditing/Instruction

Executive Officers
Business Divisions
Administrative Divisions

Quality Committee
Environment Committee

Auditing/
Instruction

I don’t think there are any issues with the effectiveness of theBoard of Directors. Effectiveness is something that gradually
evolves. Guidelines in Japan have been issued in the form of the
Corporate Governance Code. The latest revisions to this code callfor companies’ boards of directors and outside directors topossess ever-more professional expertise. To this end, I andother outside directors must be fully committed to our roles.

What do you think should be done to further
increase the effectiveness of the Board of Directors?

Group Companies

Torishima Report 2021

Interview with an Outside Director

Internal Audit Department

Instruction

Compliance Committee

Reporting

Auditing/Instruction

15

Reporting

Deliberation/
ReportingPrior Discussions

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

Career summary
2005: President and Representative Director, SANYO Electric Co., Ltd
2011: Director, Deputy Chief Executive Officer, LIXIL Corporation
2018: Outside Director (Member of Audit and Supervisory Committee), Enplas Corporation (present)
2019: Outside Director, TAKARA & COMPANY Ltd. (present)

improve business performance.

Supervision/
Auditing

Duties of the Compliance Committee

Director (Member of Audit and Supervisory Committee)

formulation of management policies and helps

Appointment/
Dismissal“Never lose the public trust, even if monetary loss
proves unavoidable.” In line with this corporate
philosophy, Torishima has formulated a basic policy toensure compliance in business management.
The policy covers the observance of laws andregulations, while also stipulating fair and impartial
behavior and prohibiting discrimination and acts that
violate social ethics. There are further stipulations onmaintaining discipline and order, and on remedialaction to take when violations of the policy occur.
Torishima works to thoroughly communicate thecontent of the policy to all directors and employees,
so that they understand and follow it properly.

Torishima also has a Compliance Committee and a
consultation service for discussing matters such as
workplace ethics and related laws and regulations.

Reporting/Consultation

I think there are four ways in which the Board of Directors canincrease effectiveness.

1. Allot more time to debating important issues.
2. Spend sufficient time debating and verifying a matter withincompany departments before it goes to the Board of Directors
for deliberation.
3. Constantly verify company measures regarding the SDGs.
4. Aggressively incorporate information and communication
technologies that can bring us closer to where the work is
done.

Tell us about your role as an outside director andwhat you hope to achieve.
Up to now, I have worked in management in the manufacturingindustry. I have worked with people from many different
countries, and always with the fundamental objective of doing
everything possible to bring useful products and services tocustomers around the world. Torishima’s corporate vision of
being indispensable to society resonates with me, and I am
pleased to be able to work with everyone at the company.
My job is to get things done. All I can do for the company is offer
it my firsthand experience, advise it using examples of relevant
management decisions I have made in the past, and propose
other choices to the management team.
I just want to contribute in any way I can to Torishima’s
growth. With the new head office factory fully operational,
Torishima is embarking on a new journey of challenges. I ask
each and every one of my colleagues to take this opportunity toplay a vital role in making Torishima a company that is truly
indispensable to society.

Torishima Pump Mfg. Co., Ltd.

16

Directors and Executive Officers
Directors (As of June 29, 2021)
ISO 9001 Quality Management System

Maximizing our experience and knowledge to raise the medium- and long-term corporate value of the Torishima Group

Torishima has been certified for ISO 9001, an international standard on
quality management systems.

Basic Quality Philosophy
Earning customer trust, providing satisfaction

Quality Policy
1.	
We place top priority on abiding by laws, regulations, and rules, and on giving customers safety
and reliability.
In order to provide customers with products and services of value, we make proposals and2.	
respond with a clear understanding of customers’ needs and expectations.
We clarify and execute all items stipulated in contracts with customers.
3.	
4. We constantly create and improve on quality in all processes.
5. We set quality targets, and plan and implement the concrete measures to realize these targets.
To ensure that non-conforming products and customer complaints never happen, we conduct
6.	
thorough design review and initial-product quality control.
7. In the case of non-conforming products, we respond appropriately and thoroughly.
8.	In the case of non-conforming products or customer complaints, we analyze them from a rangeof viewpoints to ensure they never happen again.
9.	
We systematically develop employees’ capabilities as part of fostering them into self-directedindividuals.
10. We constantly improve our quality management system to ensure its maximum effectiveness.

Representative Director

Director

Director

Since being appointed
president and representative
director in June 2006,
Mr. Harada has demonstrated
strong leadership at the core of
Torishima’s management.
He plays an indispensable rolein raising corporate value overthe medium and long term.

Besides his main duties inengineering, Mr. Hamu was incharge of planning anddeveloping new products andboosting Torishima’s overseas
marketing capabilities as headof areas including R&D andglobal sales. Since April 2020,
he has been leading reform
efforts as general manager ofthe Administration Division.

Since joining Torishima,
Mr. Takahashi’s duties haveincluded working in the wind
power business and inpersonnel and general affairs.
He has also been leading
shareholder and institutional
investor efforts through workthat includes running generalshareholders’ meetings andheading IR activities.

Mr. Fukuda’s career inaccounting, general affairs, andinternal auditing isstrengthening Torishima’s
corporate governance.
Using his experience andknowledge, he will contribute toraising corporate value over the
medium and long term throughhis appointment as a director.

Director (Member of Audit andSupervisory Committee)

Director (Member of Audit andSupervisory Committee)

Director (Member of Audit andSupervisory Committee)

Director (Member of Audit andSupervisory Committee)

Newly appointed

Outside director

Outside director

Newly appointed

Mr. Sumi has mainly worked in
the Administration Division andin a support role for Audit andSupervisory Committee
members. He will contribute toraising corporate value overthe medium and long term as adirector and member of the
Audit and Supervisory
Committee.

As a lawyer, Mr. Akiyama
possesses expertise and broad
experience in corporate law
and governance. From an
objective perspective,
independent of Torishima’s
management members, heprovides sound proposals andadvice to the company’s Boardof Directors.

Having worked in top
management positions
including managing director
and possessing a wealth ofexperience and knowledge inrunning companies and a vast
network of personalconnections, Mr. Iue provides
the Torishima Group withvaluable opinions and advice
on management.

President andRepresentative Director

Koichiro Hamu

Kotaro Harada

Hiroto Takahashi

Yutaka Fukuda
Newly appointed

ISO 14001 Environmental Management System
Torishima actively pursues ISO 14001 certification, an international standard
on environmental management systems. All of our bases in Japan operateenvironmental management systems that comply with ISO 14001:2015.
See page 10, ESG Environment, for more on Torishima’s environmental policy.

ISO 45001 Occupational Health and Safety Management
Torishima has been certified for the ISO 45001 occupational health andsafety management standard so that it can work with employees and otherrelevant personnel to build a safe work environment.

Safety and Health Policy

Haruhisa Sumi

Hiroshi Akiyama

Toshimasa Iue

Basic Philosophy
Torishima contributes to society through business activities that include the development andmanufacture of pumps and related products. At the same time, we regard creating a safe, healthy
environment—one where employees can work free of worries and where their health is maintainedor even enhanced—as the basis of our QCD (quality, cost, and delivery) actions. We have thus
formulated a basic policy on safety and health and are building a culture of safety and health thataims for a virtuous cycle. And we seek to be a vibrant company that continues to grow forever.

Executive Officers (As of June 29, 2021)
Kotaro Harada

President

Deputy Chief Executive Officer

Gerry AsheHead of Global Business

Senior Managing Executive Officers

Koichiro Hamu
Alister Flett

General Manager of Corporate Strategy Bureau*, General Manager of Administration Division
General Manager of Corporate Strategy Bureau*, General Manager of Global-Sector Division

Managing Executive Officers

Yoshinori Hirusawa
Yasuo Yanagawase

General Manager of Private-Sector Division
General Manager of Public-Sector Division

Executive Officers

Masahiko Ishida
Mitsuhiko Ohie
Hiroto Takahashi
Mike Choi
Takuya Ono
Hideki Tsukahara

General Manager of Engineering Division
General Manager of Production Division
General Manager of General Affairs Department
Regional Director of TGT Hong Kong & Vietnam, Managing Director of Torishima (Hong Kong) Ltd.
General Manager of Singapore Office, Chairman of Torishima Service Solutions Asia
Deputy General Manager of Private-sector Sales Department,
General Manager of Tokyo Private-sector Sales Department
General Manager of Procurement Department
General Manager of Information System Office
General Manager of Accounting Department
General Manager of Middle East Office, Director of Project Management Division,
General Manager of Saudi Arabia Representative Office
Deputy General Manager of Production Division, General Manager of Production Management Division
General Manager of China Production, Vice General Manager of Torishima Pump (Tianjin) Co. Ltd*The Corporate Strategy Bureau is under joint management.

Akihiro Wada
Jun ItoAtsuo Mabuchi
Satoshi Tomizawa
Takuaki Tasaki
Koichi Takenaka

17

Torishima Report 2021

Outside director

Mr. Yamamoto has been
appointed as an outside director
and member of the Audit andSupervisory Committee. With awealth of experience andspecialized knowledge in taxes,
finance, and accounting
garnered through years as acertified public accountant,
he will bring an objective,
outside perspective to Torishima
and is expected to provide
valuable proposals and advice.

Chief Executive Officer

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

Soji Yamamoto

Torishima Pump Mfg. Co., Ltd.

18

Financial Data from the Past 11 Years
Millions of yen

Thousands of
U.S. dollars*1

FY2010FY2011FY2012FY2013

FY2014FY2015FY2016FY2017FY20182019

FY2020

FY2020Orders received

32,97439,57940,97552,84742,87851,304

43,48342,23351,76848,82449,055441,936

Net sales

49,88046,45345,97445,98546,50140,47944,41445,381

48,154

47,12650,787457,540

Gross operating income

9,257

8,959

8,015

8,320

9,162

9,191

10,538

10,954

11,763

12,31013,462

121,279

Operating income or loss

3,127

2,286

517

(945)

400

373

1,462

1,257

1,731

1,220

3,591

32,351

1

Ordinary income or loss

3,673

2,929

1,389

(632)

793

(1,663)

1,871

1,549

2,275

1,324

4,612

41,549Business
performance

Net income or loss attributable to owners of the parent

1,892

1,497

943

442

405

(2,422)

1,532

854

2,183

543

3,353

30,207Gross profit margin (%)

18.6%

19.3%

17.4%

18.1%

19.7%

22.7%

23.7%

24.1%

24.4%

26.1%

26.5%

26.5%

Operating profit margin (%)

6.3%

4.9%

1.1%

(2.1)%

0.9%

0.9%

3.3%

2.8%

3.6%

2.6%

7.1%

7.1%

ROE (return on equity) (%)

6.1%

4.8%

2.9%

1.3%

1.1%

(7.5)%

4.7%

2.6%

6.4%

1.6%

9.5%

9.5%

ROA (return on assets) (%)

3.1%

2.5%

1.4%

0.6%

0.6%

(3.7)%

2.3%

1.2%

3.0%

0.7%

4.2%

4.2%

Total assets

61,17860,812

68,232

68,062

71,987

66,19867,71971,171

72,67472,961

79,185713,378

Net assets

30,96831,77533,602

34,52436,532

32,79433,71334,01734,94733,47037,609338,819

Equity ratio (%)

50.3%

51.3%

48.2%

49.9%

50.0%

48.7%

48.9%

47.3%

47.7%

45.4%

47.0%

47.0%

Japan

18,703

17,281

18,07020,096

19,104

17,05922,15325,05824,471

25,79928,980261,081

Asia

11,196

13,125

10,259

9,042

11,124

11,307

8,612

8,391

8,168

8,306

7,650

68,918Middle East

14,36911,43011,887

9,753

11,1158,225

10,94010,064

11,196

8,929

9,421

84,873

Others

5,609

4,615

5,758

7,092

5,156

3,887

2,708

1,866

4,318

4,090

4,735

42,657

Overseas ratio (%)

62.5%

62.8%

60.7%

56.3%

58.9%

57.9%

50.1%

44.8%

49.2%

45.3%

42.9%

42.9%

Public sector

9,973

11,60010,971

15,923

12,001

16,013

15,913

13,914

16,434

18,81320,504

184,720

Private sector

4,921

6,205

5,733

7,144

6,943

8,396

7,973

8,914

9,258

9,339

9,623

86,693

Overseas

18,07921,772

24,27029,77923,93326,895

19,595

19,40326,075

20,672

18,928

170,522

Public sector

13,76011,317

12,277

13,797

12,957

9,980

13,832

16,621

15,931

16,412

19,682

177,315

Private sector

4,942

5,963

5,792

6,299

6,146

7,078

8,320

8,436

8,540

9,387

9,297

83,756

Overseas

31,17629,172

27,90425,88827,397

23,41922,261

20,322

23,683

21,32621,807

196,459

Public sector

6,528

6,811

5,505

7,631

6,675

12,707

14,78812,082

12,585

14,98715,808142,414

Private sector

2,455

2,698

2,639

3,484

4,281

5,598

5,251

5,729

6,447

6,399

6,724

60,576

Overseas

38,23130,832

27,19831,08927,625

31,101

28,436

27,51629,90829,253

26,374

237,603

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

6,130

6,673

7,497

9,265

8,761

8,818

9,075

9,697

10,032

11,0909,870

88,918

SG&A-to-sales ratio (%)

12.3%

14.4%

16.3%

20.1%

18.8%

21.8%

20.4%

21.4%

20.8%

23.5%

19.4%

19.4%

961

1,096

1,231

1,646

1,636

1,561

1,599

1,636

1,825

2,017

1,706

15,369

2,297

2,224

3,083

2,139

1,221

1,391

1,084

883

1,627

2,469

2,450

22,072R&D expense

567

606

691

678

658

484

453

430

482

353

381

3,432

Cash flow from operations

735

2,661

3,513

(4,086)(1,194)

5,000

6,496

587

3,769

4,207

4,366

39,333

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

(345)

(415)

1,376

(1,105)(1,438)(1,976)(1,645)(14,819)

Cash flow from financial activities

590(2,371)

4,356

(112)

2,120

(1,624)(4,140)

1,153

2,150

(1,672)(2,070)(18,648)(Fiscal years ended March 31)

2
Financial status

Net salesby region

3
Breakdown oforders received,
net sales, andorder backlog

Orders received
by segment

Net salesby segment

Order backlog
by segment

4
Major expenditures

5
Cash flow

Depreciation
Capital investment

6

Net income per share (yen)

67.45

53.38

33.64

15.74

14.61

(88.13)

56.15

31.50

80.18

20.07

126.47

1.13 dollars

Per share information

Net assets per share (yen)1,097.71

1,112.29

1,172.56

1,209.10

1,308.22

1,179.57

1,221.94

1,240.33

1,270.43

1,226.56

1,422.14

12.81 dollars

7

Dividends (yen)

18

18

18

18

18

18

18

18

25*2

18

21

0.18 dollars

Stock information

Payout ratio (%)

26.7%

33.7%

53.5%

114.4%

123.2%

–

32.1%

57.5%

31.3%

90.1%

16.6%

16.6%

*1: ‌U.S. dollar amounts have been translated from yen—solely for the convenience of the reader—at the rate of ¥111 to U.S.$1.00,
the exchange rate prevailing on March 31, 2021.
*2: Includes an additional 7-yen dividend commemorating Torishima’s 100th year of business.
Note: Figures on pages 19 to 25 have been calculated based on Japanese disclosure rules.

19

Torishima Report 2021

Torishima Pump Mfg. Co., Ltd.

20

Consolidated financial statements
Consolidated balance sheet

Thousands of
U.S. Dollars

Millions of Yen

Thousands of
U.S. Dollars

Millions of Yen

FY2019FY2020

FY2020FY2019FY2020

FY2020(March 31, 2020)(March 31, 2021)(March 31, 2021)(March 31, 2020)(March 31, 2021)(March 31, 2021)

AssetsLiabilities

Current assets

Current liabilities

Cash and deposits

16,277

16,799151,342

Notes and accounts payable - trade

11,863

11,440103,063

Notes and accounts receivable - trade25,72726,265

236,621

Short-term borrowings

3,452

3,495

31,486

264

239

2,153

Income taxes payable

297

1,114

10,036Work in process

7,916

8,273

74,531

Advances received

3,242

2,858

25,747

Raw materials and supplies

1,940

1,978

17,819Provision for bonuses

822

924

8,324

649

929

8,369

Provision for product warranties

595

822

7,405

Other

1,353

1,056

9,513

Provision for loss on construction contracts

831

914

8,234

Allowance for doubtful accounts(1,885)(1,971)(17,756)

Other

2,700

4,303

38,765

Total current assets

52,24353,572482,630

Total current liabilities

23,80625,872233,081Long-term borrowings

14,116

13,065

117,702

336

1,088

9,801

2

3

27

Merchandise and finished goods

Advance payments to suppliers

Non-current assets

Non-current liabilities

Property, plant and equipment
Buildings and structures

10,397

13,819124,495

Deferred tax liabilities

Accumulated depreciation(6,161)(5,619)(50,621)

Provision for retirement benefits for directors (and other officers)

Buildings and structures, net

4,235

8,200

73,873Retirement benefit liability

279

202

1,819

Machinery, equipment and vehicles

11,27911,421

102,891

Other

949

1,342

12,090

Accumulated depreciation(9,185)(9,336)(84,108)

Total non-current liabilities

15,68315,703

141,468

Machinery, equipment and vehicles, net

2,094

2,084

18,77439,49041,575374,549

3,334

3,555

32,027(2,901)(3,104)(27,963)

433

450

4,054

Share capital

1,592

1,592

14,342

Land

2,478

2,386

21,495

Capital surplus

7,372

7,388

66,558

Leased assets

1,712

1,978

17,819Retained earnings

24,65627,780250,270

Accumulated depreciation

(750)

(651)

(5,864)

Treasury shares(1,733)(2,464)(22,198)

Leased assets, net

962

1,326

11,945

Total shareholders’ equity

31,88834,297

308,981Construction in progress

1,490

94

846

Total property, plant and equipment

11,695

14,544

131,027

Valuation difference on available-for-sale securities

822

2,277

20,513

413

240

2,162

Deferred gains or losses on hedges

(42)

(143)

(1,288)Foreign currency translation adjustment

310

39

351

163

758

6,828

1,253

2,932

26,414Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net

Intangible assets
Investments and other assets
Investment securities

Total liabilities
Net assets
Shareholders’ equity

Accumulated other comprehensive income

7,917

9,189

82,783Remeasurements of defined benefit plans

Long-term loans receivable

307

142

1,279

Total accumulated other comprehensive income

Retirement benefit asset

280

1,221

11,000Share acquisition rights

121

112

1,009

Deferred tax assets

85

116

1,045

Non-controlling interests

207

267

2,405

Other

499

461

4,153

Total net assets

33,47037,609338,819

Allowance for doubtful accounts

(480)

(302)

(2,720)72,961

79,185713,378

Total investments and other assets

8,609

10,82897,54920,717

25,612

230,738

72,961

79,185713,378

Total non-current assets
Total assets

Total liabilities and net assets- U.S. dollar amounts have been translated from yen—solely for the convenience of the reader—at the rate of ¥111 to U.S.$1.00,
the exchange rate prevailing on March 31, 2021.
- The totals shown in the consolidated financial statements (both in yen and in U.S. dollars) do not necessarily agree with the sum of the individual amounts.
21

Torishima Report 2021

Torishima Pump Mfg. Co., Ltd.

22

Consolidated financial statements
Consolidated statements of (comprehensive) income(Consolidated statements of income)Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Foreign exchange gains
Share of profit of entities accounted for using equity method
Rental income
Insurance claim income
Subsidy income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of investment securities
Total extraordinary income
Extraordinary losses
Loss on sale of investment securities
Loss on valuation of investment securities
Loss on disposal of non-current assets
Impairment losses
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent(Consolidated statements of comprehensive income)

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

Thousands of
U.S. Dollars

Millions of Yen

FY2019FY2020

FY2020(March 31, 2020)(March 31, 2021)(March 31, 2021)

50,78737,325
13,4629,870
3,591

47,12634,815
12,31011,0901,220

457,540
336,261
121,279
88,91832,351

190
682

35
220
240
131
116
171
142
174
1,230

315
1,981
2,162
1,180
1,045
1,540
1,279
1,567
11,081

125
270
183
578
1,324

127
—
82
210
4,612

1,144
—
738
1,891
41,549

3
3

110
110

990
990

36
293

—
20
91
51

—

150
—
—

33
154
128

1,351
—
—

—

21

189

316
1,011
309
140
449
561
17
543

171
4,551
1,270
(136)
1,133
3,417
64
3,353

1,540
41,00011,441(1,225)
10,20730,783576
30,207

Thousands of
U.S. Dollars

Millions of Yen

FY2019FY2020

FY2020(March 31, 2020)(March 31, 2021)(March 31, 2021)

561

3,417

30,783

(815)
16
(102)
(218)
(2)
(1,122)
(560)

1,455
(100)
(270)
595
(3)
1,676
5,094

13,108(900)(2,432)
5,360(27)
15,09945,891

(583)
22

5,032
62

45,333558- U.S. dollar amounts have been translated from yen—solely for the convenience of the reader—at the rate of ¥111 to U.S.$1.00,
the exchange rate prevailing on March 31, 2021.
- The totals shown in the consolidated financial statements (both in yen and in U.S. dollars) do not necessarily agree with the sum of the individual amounts.

23

Torishima Report 2021

Consolidated statements of changes in net assets
FY2020 (April 1, 2020 to March 31, 2021) Millions of yen
Shareholders’ equity
Share capital

Capital surplus

Retained earnings

Treasury shares

Total shareholders’ equity

1,592

7,372

24,656(1,733)31,888

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

(485)

(485)

3,353

3,353
(867)

(867)

136

143

7
8

264

256

—

15

3,124

(731)

2,408

1,592

7,388

27,780(2,464)34,297

Accumulated other comprehensive income

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

Valuationdifferenceonavailablefor-salesecurities

Deferred
gains orlosses onhedgesForeigncurrencytranslation
adjustment

822

(42)

310

RemeasureTotal
ments of accumulated
definedotherbenefit comprehenplans sive income

Shareacquisitionrights

Noncontrollinginterests

Total net
assets

1,253

121

207

33,470

163

(485)
3,353
(867)
143
264
1,455

(100)

(271)

595

1,678

1,455

(100)

(271)

595

1,678

(9)

60

4,139

2,277

(143)

39

758

2,932

112

267

37,609(9)FY2020 (April 1, 2020 to March 31, 2021)

60

1,730

Thousands of US dollars
Shareholders’ equity
Share capital

Capital surplus

Retained earnings

Treasury shares

Total shareholders’ equity

14,342

66,414

222,126(15,612)287,279

Balance at beginning of period
Changes during period
Dividends of surplus
Profit attributable to owners of parent
Purchase of treasury shares
Disposal of treasury shares
Cancellation of treasury shares
Net changes in items other than shareholders’ equity
Total changes during period
Balance at end of period(4,369)(4,369)30,20730,20763
72(7,810)(7,810)

1,225

1,288
2,378

2,306

—

135

28,144(6,585)

21,693

14,342

66,558250,270(22,198)

308,981

Accumulated other comprehensive income

Balance at beginning of period
Changes during period
Dividends of surplus
Profit attributable to owners of parent
Purchase of treasury shares
Disposal of treasury shares
Cancellation of treasury shares
Net changes in items other than shareholders’ equity
Total changes during period
Balance at end of period

Valuationdifferenceonavailablefor-salesecurities

Deferred
gains orlosses onhedgesForeigncurrencytranslation
adjustment

7,405

(378)

2,792

RemeasureTotal
ments of accumulated
definedotherbenefit comprehenplans sive income

Shareacquisitionrights

Noncontrollinginterests

Total net
assets

11,288

1,090

1,864

301,531

1,468(4,369)30,207(7,810)
1,288
2,378
(900)

(2,441)

5,360

15,117

13,108(900)(2,441)

5,360

15,117(81)

540

37,28820,513(1,288)

351

6,828

26,414

1,009

2,405

338,819

13,108(81)

540

15,585- U.S. dollar amounts have been translated from yen—solely for the convenience of the reader—at the rate of ¥111 to U.S.$1.00,
the exchange rate prevailing on March 31, 2021.
- The totals shown in the consolidated financial statements (both in yen and in U.S. dollars) do not necessarily agree with the sum of the individual amounts.

Torishima Pump Mfg. Co., Ltd.

24

Consolidated financial statements

Corporate Data
Thousands of
U.S. Dollars

Millions of Yen

FY2019(April 1, 2019 toMarch 31, 2020)

Cash flows from operating activities
Profit before income taxes
Depreciation
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for product warranties
Increase (decrease) in provision for loss on construction contracts
Increase (decrease) in retirement benefit assets
Increase (decrease) in retirement benefit liability
Interest and dividend income
Insurance claim income
Subsidy income
Interest expenses
Share of loss (profit) of entities accounted for using equity method
Loss (gain) on valuation of investment securities
Loss (gain) on sale of investment securities
Loss (gain) on sale and retirement of property, plant and equipment
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Decrease (increase) in advance payments to suppliers
Increase (decrease) in trade payables
Increase (decrease) in advances received
Increase (decrease) in accounts payable - other
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Income taxes refund
Proceeds from insurance income
Subsidies received
Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Payments for retirement of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sale of investment securities
Loan advances
Proceeds from collection of loans receivable
Purchase of shares of subsidiaries resulting in change in scope of consolidation
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Proceeds from sale of treasury shares
Purchase of treasury shares
Proceeds from share issuance to non-controlling shareholders
Dividends paid to non-controlling interests
Dividends paid
Repayments of lease obligations
Proceeds from issuance of bonds
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Decrease in cash and cash equivalents resulting from exclusion of subsidiaries from consolidation
Cash and cash equivalents at end of period

FY2020(April 1, 2020 toMarch 31, 2021)

FY2020(April 1, 2020 toMarch 31, 2021)

1,011
2,017
908
(48)
(201)
245
(154)
(14)
(329)
(51)
—
125
(20)
154
29
174
(68)
(1,820)
(26)
784
965
326
24
4,034
330
(132)
(167)
92
51
—
4,207

4,551
1,706
100
101
226
85
(99)
19
(255)
(171)
(142)
127
(131)
0
39
1
(659)
(434)
(269)
(405)
(360)
(95)
451
4,387
255
(127)
(464)
1
171
142
4,366

41,00015,369
900
909
2,036
765
(891)
171
(2,297)(1,540)(1,279)1,144(1,180)0351
9(5,936)(3,909)(2,423)(3,648)(3,243)(855)
4,063
39,522
2,297(1,144)(4,180)
9
1,540
1,279
39,333(68)
60(2,242)
(91)
17
(226)
(142)
498
(3)
31
—
190
(1,976)(1)
12(2,342)
(48)
4
(107)
(88)
957
—
3
(4)
(29)
(1,645)(9)
108(21,099)
(432)
36
(963)
(792)
8,621
—
27
(36)
(261)
(14,819)

67
500
(913)
81
(382)
5
(1)
(679)
(350)
—
—
(1,672)(217)
341
15,924—
16,265

(172)
1,650
2,037
99
(867)
38
—
(487)
(389)
97
(1)
(2,070)(18)
630
16,265(149)
16,746(1,549)14,864(18,351)891(7,810)342—(4,387)(3,504)873(9)(18,648)
(162)
5,675
146,531(1,342)150,864- U.S. dollar amounts have been translated from yen—solely for the convenience of the reader—at the rate of ¥111 to U.S.$1.00,
the exchange rate prevailing on March 31, 2021.
- The totals shown in the consolidated financial statements (both in yen and in U.S. dollars) do not necessarily agree with the sum of the individual amounts.
25

Torishima Report 2021

Individuals and others
5,931,988 shares 20.10%
Treasury stock
2,841,260 shares 9.63%

Torishima Pump Mfg. Co., Ltd.

Consolidated statements of cash flows(As of March 31, 2021)

Share Breakdown

Foundation: August 1, 1919
Paid-in-capital: 1,592,775,030 yen
Outstanding shares: 29,512,179
Shareholders: 6,391
Employees: 1,608 (Consolidated);
918 (Non-consolidated)
Major Japanese Bases:
Head office: 1-1-8 Miyata-cho, Takatsuki City, Osaka
569-8660, Japan
Branch offices: Tokyo, Osaka, Sapporo, Sendai, Nagoya,
Hiroshima, Takamatsu, Kyushu (Fukuoka City), Saga
Sales offices: Yokohama, Mie, Wakayama, Okinawa

Global Network

Type of Shareholder

Financial institutions
10,237,248 shares 34.69%

Financial instrument business operators
558,134 shares 1.89%
Other companies
7,280,662 shares 24.67%
Non-Japanese companies, etc.
2,662,887 shares 9.02%

Countries where Torishima has delivered products (more than 100)

23 24

❶❷
21 20
22

❸❹
❽ ❾
❼
❺❻

East Asia❶ Beijing Office❷ Torishima Pump (Tianjin) Co., Ltd.
❸ Torishima (Hong Kong) Ltd.
❹ Torishima Service Solutions
Formosa Co., Ltd.

South East Asia
❺ Singapore Office❻ Torishima Service Solutions Asia Pte. Ltd.
❼ Torishima Service Solutions
Malaysia Sdn. Bhd.
❽ Torishima Service Solutions Asia Pte. Ltd.
Vietnam Office❾ Torishima Service Solutions Asia Pte. Ltd.
Philippines Office
10P.T. Torishima Guna Engineering
11P.T. Torishima Guna Indonesia
12P.T. Geteka Founindo

13Torishima Service Solutions (Thailand) Ltd.
14Torishima Service Solutions Asia Pte. Ltd.
Myanmar Office

EuropeTorishima Europe Ltd.
Torishima Service Solutions Europe Ltd.
Torishima Europe Ltd. Madrid OfficeSouth Asia
15Torishima Pumps (India) Pvt. Ltd.
16Torishima Pumps (India) Pvt. Ltd.
Service Division

North America
North America East Office
Torishima Service Solutions ofMichigan LLC.

Oceania
17Torishima Australia Pty. Ltd.

Central America
Torishima Europe Ltd. Mexico Office

Middle East
18Torishima Service Solutions FZCO
19Middle East Project Office
20Qatar Project Office
Torishima Service Solutions(Saudi Arabia) Ltd.
Saudi Arabia Representative Office

Editorial Policy
We publish the Torishima Report, which communicates to the
public Torishima’s corporate value, including the company’s
financial and non-financial elements. Please refer to our
website for further information of the company.
Financial Data Reference Source
The financial results (including consolidated financial
statements) in the Torishima Report were taken from thesecurities report for the year ending March 31, 2021. For
other financial data, including the securities report andfinancial statements audited by a third party, please visit the
IR section of our website.
Organizations Covered
This report covers the activities of Torishima Pump Mfg. Co.,
Ltd. and its consolidated subsidiaries. Some of theinformation is on Torishima Pump Mfg. Co., Ltd. only.

Referenced Guidelines
Torishima has endeavored to make a report that will generate unique value for thecompany. We referred to the International Integrated Reporting Framework
published by the International Integrated Reporting Council (IIRC) and theEnvironmental Reporting Guidelines (2012 version) published by the Ministry of
the Environment, Japan.
Cautionary Statement with Regard to Forward-Looking Statements
The data and forward-looking statements disclosed in the Torishima Report are
based on decisions made and on information obtained up until the day this report
was published. The forward-looking statements are subject to change due tovarious factors, and they do not guarantee the attainment of objectives, forecasts,
or future business performance. The information in the report is subject to change
without prior notice. Therefore, readers are cautioned to use the information in thereport at their discretion while referring to—or comparing the report with—othersources of information. Torishima bears no obligation whatsoever to compensate
for any damages that may occur as a result of using this report.

Period Covered
The report basically covers the financial reporting period from
April 1, 2020 to March 31, 2021. For information on items
occurring after April 1, 2021, the date is included on therelevant page.
Torishima Pump Mfg. Co., Ltd.

26