Message from Top Management

We continue to help solve
social problems and contributeto the sustained developmentof the world by creating valuable
products and services.

We at Takuma oﬀer our heartfelt condolences for all
those who have lost their lives as a result of
COVID-19, and we hope that all those suﬀering fromthe disease will recover quickly and that the pandemic
will be brought under control as soon as possible.

Management Principles

Inventor Tsunekichi Takuma founded Takuma in
1938 with the philosophy of Serve society throughboiler manufacturing. Since that time the Takuma
Group has inherited that philosophy and used it toestablish businesses involving the full array of boilers
while taking advantage of technologies developed
through boilers to enter the environmental sanitationﬁeld with facilities such as waste treatment plants andwater treatment plants, broadening its businesses
with a focus on the ﬁelds of energy use andenvironmental protection, and contributing to society's
development and the resolution of social problems.
Our Management Principles lie in this founding spirit,and a dedication to contributing to the sustained
development of society over the long term throughbusiness activities remains the starting point of the
Takuma Group as well as a core expression of its
unchanging values.

Takuma Group Strengths

Along with the technologies and expertise that the
Takuma Group has accumulated through the repeated
improvement of products and services since its
founding, the relationships of sincerity and trust that
the Group has developed with longstanding customers
by providing after-sales service and solutions havebeen passed down unbroken as the tangible andintangible assets that embody its greatest strengths
and the source of its ability to compete successfully.

05

Reﬂections on the 12th
Medium-Term Management Plan
Under the 12th Medium-Term Management Plan
(FY2018 to FY2020), which represents the ﬁnal stage
in the Group's eﬀort to achieve the medium- andlong-term vision for FY2020 that it began in FY2012
of being an indispensable presence in society as aleading company in the ﬁeld of renewable energy
utilization and environmental protection and ofachieving ordinary proﬁt of JPY 10.0 billion in
FY2020, we have pursued the theme of increasing
our corporate capabilities in order to achieve ourcorporate vision and subsequently realize steady
growth. In addition to working to strengthen andexpand our revenue foundation, for example byproposing solutions based on customer needs in our
after-sales service business and launching an energy
plant O&M* business for private-sector companies, we
safeguarded our market position by continuing tosteadily turn robust demand into orders received in our
EPC business*. As a result of these initiatives, weachieved the targets set forth in the ﬁnancial plan (forconsolidated ordinary proﬁt).

Vision 2030 Long-Term Vision

Global issues that merit concern include thegrowing seriousness of the problem of climate change;
the worsening of the sanitation environment due torapid population growth and urbanization, particularlyin emerging nations; and increasing energy demand.
At the same time, domestic challenges like fallinginternal demand caused by the shrinking and aging ofJapan's population, shortages of human resources
and future leaders, tight ﬁnancial conditions aﬀecting

TAKUMA CSR Report 2021

06

Message from Top Management

national and local government, and aging
infrastructure are triggering major concerns about howa sustainable society can be realized going forward.
Based on these social conditions and issues, weformulated Vision 2030 as a long-term vision thatwould serve as new guidelines for the Group's
medium- and long-term management.
In keeping with this vision, the Takuma Group will
implement Environment, Social, and Governance(ESG) management, an approach that consists ofaddressing key ESG-related issues in an eﬀort toachieve sustained growth by resolving issues faced bycustomers and society through business activities. In
pursuing business activities built on a core of ESG
management, we will strive to become a great partner
for our customers by leveraging the technologies andexpertise related to energy utilization andenvironmental protection that are the Group's
strengths, along with the relationships of trust we havedeveloped with customers over the long term. Throughthe useful technologies and services created throughinnovation by the Group, which carries on the spirit ofa tenacious inventor, we will resolve challenges facedby customers and society, with a focus on the ﬁelds ofrenewable energy utilization and environmental
protection. We at the Group will work to achieve
ordinary proﬁt of JPY 20.0 billion in FY2030 byaddressing key ESG-related issues through ourbusiness activities and realizing sustained growthalongside our customers and society. P29-30

13th Medium-Term
Management Plan

The Takuma Group launched its 13th Medium-Term
Management Plan (FY2021 to FY2023) in April 2021
as the ﬁrst step towards realizing Vision 2030, ourlong-term vision. The plan's theme is laying the07

foundation for further growth based on the
management foundation and business foundation that
the Group has built to date.
The basic policy set forth in the 13th Medium-Term
Management Plan is strengthening conventional
businesses by reinforcing the Group's managementfoundation and at the same time accelerating our
response to future environmental changes. We will
strive to realize sustainable growth alongsidecustomers and society by implementing ESG
management through these business activities.
1) Implementing ESG Management
In order to realize sustained growth alongside ourcustomers and society by implementing ESG
management as set forth in Vision 2030, our long-term
vision, the Group approached the task of formulating
the 13th Medium-Term Management Plan byorganizing various ESG issues from the dual
standpoints of their importance for stakeholders andsociety on the one hand, and their importance for theGroup on the other. This process led to theidentiﬁcation of seven key issues (Materiality) thatdeserve to be given priority by the Group. P32-34
Helping combat climate change
Environment

Conserving resources and protecting
the environment
Strengthening relationships of trust withcustomers and communities

SocialPursuing partnerships and innovation

neutrality by 2050, the Group will work to strengthen
its management foundation through active allocationand investment of resources in human resources,
digital technologies, and other areas of our operations
while accelerating eﬀorts to strengthen conventional
businesses and accommodate future environmental
changes. P39-40
3) Financial Targets
In order to achieve the goal of posting ordinary proﬁtof JPY 20.0 billion in FY2030 as set forth in Vision
2030, our long-term vision, the 13th Medium-Term
Management Plan sets the achievement of steady
growth and a target of cumulative consolidated
ordinary proﬁt of JPY 36.0 billion over the course of
the plan (FY2021 to FY2023) as the ﬁrst step in thatprocess. We will work wholeheartedly to achieve
those goals. P37
Takuma has been a signatory to the United Nations
Global Compact* since 2006, and we support its 10
fundamental principles in the four areas of humanrights, labor, environment, and anti-corruption. We will
work to develop our business while understanding andrespecting these globally shared principles. The
Takuma Group has been helping resolve social issues
with technologies for reducing emissions ofgreenhouse gases like carbon dioxide through suchmeans as high-eﬃciency power generation using waste
and biomass since before the phrase renewableenergy entered into common usage. We believe that
initiatives to achieve the Sustainable Development
Goals (SDGs) P14 put forth by the United Nations
and the COP21 Paris Agreement align extremely wellwith the Group's businesses.
Finally, in compiling this CSR Report we havesought not only to provide a resource by means ofwhich a broad range of stakeholders can learn more
about the Takuma Group's activities, but also to help
each and every Group employee think carefully about
CSR and bring that perspective to bear in his or her
work. Additionally, this year's report provides moredetailed coverage of topics like the value creation
process and key issues. We at the Takuma Groupencourage readers to oﬀer their candid views andadvice, which we will carefully review in order that wemight better resolve social issues and contribute to thesustained development of society.

July 2021
Takuma Co., Ltd.
President and CEO
Hiroaki Nanjo

Promoting activities of human resources
Ensuring safety and health
Governance

Strengthening corporate governance2) Strengthening the Management Foundation
In order to anticipate change and realize additional
growth as environmental change gathers pace, forexample in the rapid development of digitaltechnologies and the goal of achieving carbon*O&M: Operation & Maintenance*EPC business: A business in which Takuma oﬀers a turnkey service extending from plant design to procurement and construction(Engineering, Procurement, and Construction)*United Nations Global Compact: The Takuma Group has joined the United Nations Global Compact (UNGC), which is a voluntary eﬀort to create a
global framework for implementing sustainable growth by having companies and groups exercise responsible andcreative leadership while acting as good members of society.

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08

At a Glance●Contribution to reducing CO 2 emissions

TAKUMA's strengths
Industrial waste
treatment plants●Established●Consolidated net sales (million JPY)

●Number of employees (consolidated)1938 146,726

3,925

P59

4 million tons

Reductionof about

from Takuma products during FY2020

Using advanced incineration
technologies, we properly treat toxic
substances and help the industry's
environmental protection eﬀorts.

（Fiscal year ended March 2021）●Our achievements (to date)

Municipal solid
waste treatment

No.1 sharein Japan360 +facilities

Biomass boiler(Japan)3,200 +

630+

Worldwide

Boiler

units

120 +

Worldwide

Upﬂow Moving-Bed
Sand Filtration System(Including biomass)

Worldwide

Industrial waste
treatment

units

facilities

We provide comfortable, clean
environments to customers in thesemiconductor industry as well as
many locations such as universities,
research institutions, and hospitals.

No.1 sharein Japan

2,700 +

Air-conditioning equipment
and clean systems

units

Municipal solid waste
treatment plants

General-purpose boilers
As the convergence of our
combustion technologies, ourboilers are a reliable brand thathas earned the support of a wide
range of industries.

We support the realization of a Sound
Material-Cycle Society using advanced
waste treatment technologies that meetthe needs of local communities.

Water treatment plants

Energy plants

We are working to purify
contaminated water with a holistic
perspective through a dialogue
with water .

Takuma's core technologies are
utilized in various types of boilers,from biomass-fueled boilers to total
systems.

●Share of the market for municipal solid waste treatment plants (cumulative to date)

No.1
09

in Japan in terms of bothscale and quantity

By number offacilities:

11.9%

By facility
capacity:

19.1%
TAKUMA CSR Report 2021

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TAKUMA's

Technologies
From waste treatment

to energy creation

TAKUMA's technologies
support recycling worldwide.
The Takuma Group possesses advanced technologies related to waste
treatment, the creation and supply of energy using under-utilized resources,
and the recycling of wastewater.
In order to resolve global-scale environmental issues like climate change andrealize a Sound Material-Cycle Society, we operate businesses in theenvironmental and energy ﬁelds, including municipal solid waste treatment plants,
energy plants, and water treatment plants.

Treating
11

waste

Creating

heat and electricity

Supplyingpower to communities

Recycling

contaminated water

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TAKUMA'sContributions
Serving as a leading company

in the environmental ﬁeld

TAKUMA's pride:
Proven track recordand accumulated trust
Since our founding, we have provided a variety of products
and services to customers in Japan and around the world.
The track record and trust we have accumulated to datetestify to the essential role we play in the world,
and we take pride in having helped resolve issues faced bycustomers and society throughout our history.
We will continue to cultivate the ability to help realize
the sustainable development of society.

What can we do on behalf of the Earth?
Protecting the environment and utilizing
renewable energy.
We are harnessing a variety of technologies to help resolvethese critical global environmental issues, which are set
forth in the Sustainable Development Goals (SDGs)
adopted by the United Nations. Helping ensure that people
worldwide can enjoy aﬄuent and fulﬁlling lifestyles whilesafeguarding our planet's abundant environment... we willcontinue to embrace these challenges.

13

TAKUMA CSR Report 2021

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TAKUMA's

History
It all began with one man's

pursuit of a challenge.

Passing on the spirit ofServe society through boiler
manufacturing to the future
Since Tsunekichi Takuma founded our business in 1938, Takuma, whose story
began with the manufacture of boilers, has marked more than 80 years of history
in pursuit of its mission of contributing to society through its business.
Today, we have grown into a company that leads its industry in the ﬁelds of theenvironment and energy, and we continue to move

1972
1958
1938
forwards to create a sustainable future.

Founding of Takuma
Boiler ManufacturingCo., Ltd.
Founder Tsunekichi Takuma invented theﬁrst water tube type boiler to be entirely
produced in Japan in 1912. The TAKUMA
boiler oﬀered performance that exceeded
the imported products of the time, and its
reputation spread. Takuma Boiler
Manufacturing Co., Ltd., was establishedin 1938. The Company Motto of Serve
society through boiler manufacturing wasformulated, establishing the philosophy thatwent on to become the foundation of
today's Management Principles.

Entry into theenvironmental andsanitation markets

Takuma established itself as amanufacturer not only of boilers, but also
environmental and sanitary equipment, forexample by developing waste heat recovery
boilers that use waste heat frommanufacturing plants, developing modern
technology for incinerating solid waste, andentering the water treatment market.
In 1963, the company delivered Japan'sﬁrst 24 hour operating waste incineration
plant.

15

Takuma worked to develop technologies to
respond to various needs as Japan's
economy grew rapidly, including demand forenergy savings in industry, countermeasures
for the growing volume and diversiﬁcation ofmunicipal waste, and improvements in water
quality by water treatment systems. In 1972,
Takuma Boiler Manufacturing Co., Ltd. which
had grown beyond its principal business ofboiler manufacturing, changed its name totoday's Takuma Co., Ltd. The company
transformed itself into an enterprise that
operates a range of multifaceted businesses,
including environmental equipment.

Building a resilient
managementfoundation

Takuma continued to reform itself, formulating
its ﬁrst Medium-Term Management Plan in1985 in order to accommodate abruptchanges in the economic environment. In
1992, the company introduced a new
Company Motto of Value Technology, Value
People, Value the Earth replacing the former
motto of Serve society through boiler
manufacturing . Capping the track record andtrust it had established to date, the company
delivered the largest waste incineration plantin Japan in 1998. The facility continues tooperate to this day.

Embracing global
challenges andbuilding a new era

Seeking to make further progress in theﬁelds of renewable energy andenvironmental protection, Takuma supplied
technologies for using energy from a variety
of waste types and biomass as well as
technology for rendering waste harmless.
We established local subsidiaries overseas
and continue to bring our technologies tocustomers not only in Japan, but alsoworldwide, particularly in Asia.

Realizing asustainable future

As contemporary society continues tochange at a dizzying rate, we face complex
problems such as climate change andchanges in demographic structure. Takuma
formulated Vision 2030, its long-term
vision, as well as the 13th Medium-Term
Management Plan in FY2021, identifying
the implementation of ESG management
as a priority. We will continue to work
towards further increasing our corporate
value and realizing a sustainable future
through business activities that leverage
the Group's strengths.

Delivery of an Energy Construction of thefrom Waste plant
Takuma Solarin Europe (2010)
Power Plant (2013)
Completion of the
Delivery of the
Amagasaki Head
Shin-Koto Incineration
Oﬃce Building (1995) Plant (1998)

Japan's ﬁrst 24 hour operating waste
incineration plant (1963)
Tsunekichi Takuma

Developing along withindustrial society

2021
2001
1985

Name change Start of mass production of(1972)
the Vacotin Heater ,the world's ﬁrst vacuum-type
hot water heater (1975)

Company emblem at thetime of Takuma's founding
The company emblem at the time of Takuma's founding stylized the company's
name (Takuma) with a triangular shape that combined the three core areas of its
operations: research, manufacturing, and installation. The design expresses thecompany's philosophy at the time, which focused on giving top priority to thecontinuous improvement of quality and on contributing to customers and society.

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TAKUMA’s WorkT h e p owe r to c h a n ge t h e wo rl d
As society's values and needs continue to diversify, respecting the personality andpotential of each and every employee so that they can make the most of theirabilities is an essential part of creating new value.
Takuma has a culture which encourages employees to embrace challenges in new
ﬁelds and to work together to reﬁne their skills, which allow us to contribute tosociety by resolving customers' and society's issues.

17

TAKUMA CSR Report 2021

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Features

01

New TAKUMA Building (Training Center)
Construction of the New TAKUMA Building(Training Center) at Takuma's Head Ofﬁce wascompleted in October 2020.
The new facility, which consists of a Solution Lab
that provides remote support for operation
management of facilities such as municipal solid
waste treatment plants and biomass power plants,
which are ﬂagship Takuma businesses, as well as aTraining Center designed to enhance employee
education and skill development, makes extensive useof wood building materials like Cross-LaminatedTimber (CLT) to create a relaxing workplaceenvironment in which occupants are surrounded by
the warmth of wood.
In addition to a hybrid structure that combines
elements of wood and steel construction, the building
has high seismic performance due to the adoption of aseismic isolation structure, and it can be used as aregional disaster prevention site in the event of anearthquake or other natural disaster.

In 2020, we opened the

New TAKUMA
Building
19

Entrancehall

The ﬁrst step takes you into a wood-themed space.
Not only ﬂoors and walls, but also ceilings make active
use of wood materials, creating a relaxing ambiancethat surrounds occupants with the warmth of wood.

SolutionLab

The Solution Lab oﬀers customers safety and a senseof assurance by providing remote support for operation
management of municipal solid waste treatment
plants, biomass power plants, and other facilities. We
increased the reliability of our remote monitoring
system by moving it from the Head Oﬃce Building to
the seismically isolated new building.

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New value creation initiatives
start at the New TAKUMA Building
The New TAKUMA Building makes extensive use ofwood materials not only in its structure, but also in its
interior furnishings. Wherever people go in the building,they will find themselves in a space imbued with thewarmth of wood.
The Solution Lab, which was moved from the Head
Office Building following the completion of the New
TAKUMA Building, provides 24-hour remote support for
operation management of municipal solid waste treatment
plants, biomass power plants, and other customer facilities.
We increased the reliability of our remote monitoring system
by moving it to this seismically isolated structure.
Additionally, we have created space designed to spur free
and imaginative thinking in the Solution Lab, and we areworking to enhance our services and improve quality byactively utilizing that space.
Training rooms feature a creative design that allows them
to be subdivided into separate spaces or opened up to
create larger, integrated spaces so that they can be used
not only for large-scale training, but also meetings andother functions.

The lobby makes extensive use of wood materials.

Spaces are designed to encourage free, imaginative thinking.

Training sessions are held in training rooms
and a seminar room. Training rooms can be
conﬁgured in a variety of ways dependingon the amount of space required.

Along with open-feeling conference rooms
that oﬀer panoramic views of the pond next
to the building, each ﬂoor's foyer prompts
free, unconstrained discussion.

21

In addition to conference rooms and training rooms that
accommodate staff from Takuma as well as multiple Group
companies and to promote energetic discussions and free,imaginative thought by both employees and outside visitors,
the New TAKUMA Building incorporates a space designed
to trigger ideas through spontaneous conversation into
each floor's foyer. Conference rooms and training rooms,
which are also used by Group companies, accommodate adiverse range of workstyles with videoconferencing andother equipment.
Additionally, adoption of a seismically isolated structure
gives the facility a high level of earthquake resistance, andthe building provides disaster prevention functionality thatwill allow it to help coordinate responses to earthquakes
and other natural disasters.
The recently completed New TAKUMA Building isalready creating new connections between Takuma, itscustomers, and regional society.

The building's hybrid structure, which combines
elements of wood and steel construction, is designed tocoexist harmoniously with the environment
The starting point for the concept underlying the newbuilding was the idea of a building that coexists
harmoniously with the environment by giving shape to
Takuma's Company Motto of Value Technology, Value
People, Value the Earth .
In formulating the building's basic plan, personnel
studied how the building could make active use of woodmaterials, which are intimately connected to the field of
renewable energy, a core business for Takuma, particularly
with regard to biomass power plants, while drawing on
proposals from the construction company. The result was a
hybrid structure that combines elements of wood and steel
construction while incorporating seismic isolation, giving ita beautiful appearance aswell as being earthquake
resistant.
In addition to providing ahigh level of satisfaction tousers, the building has
earned praise for its
architectural features,
including by being selectedduring the construction
process for inclusion in the
Ministry of Land,
Wood-rich exterior appearance

Infrastructure, Transport and Tourism's FY2018
Sustainable Building Leading Program (Leading Wood
Structures) as a next-generation wood structure and byreceiving the Prize for Timber Utilization at the Award forInnovative Timber Utilization 24th following its completion.

New TAKUMA Building (Training Center)
Completed: October 2020
Structure: Wood + steel construction witha seismically isolated foundation
Size: Six stories above ground
Many of the building's wooden elements wereTotal ﬂoor space: 3,334m²
manufactured by MEIKEN LAMWOOD Corp.

Design and construction: Takenaka Corporation

Message from the New TAKUMA Building (Training Center) Project Team Secretariat

We are making improvements on a daily basis toensure the new building provides a pleasant experience.
As the department responsible for orchestrating a smooth
construction process and managing the facility after its
completion, the General Aﬀairs Department, to which I
belong, helps operate the building through small, cumulative
improvements, for example in how the facility's air
conditioning systems are operated and in the layout of its
furnishings, in response to daily feedback from building users.
I am pleased that the building, which serves as a symbol of
Takuma's businesses, has been generating results as aneﬀective promotional tool since its completion, as evidenced
by growing coverage of our company by television stations,magazines, and other media. In addition to providing robust

support for customer needs through remote monitoring ofcustomers' plants, the New TAKUMA Building is playing a
key role in Takuma's employees' education and skill
development. Going forward, we will continue our current
approach to managing the facility while pursuing operational
improvements in a way that satisﬁes all stakeholders.
Naoki Tsujita
General Aﬀairs Department, Corporate Services Division
New TAKUMA Building (Training Center)
Project Team Secretariat

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