T A K UM A CSR R epo rt 2018

2-2-33 Kinrakuji-cho, Amagasaki, Hyogo 660-0806, Japan
Website: http://www.takuma.co.jp/english/

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CSR Report2018Message from Top Management

7

Takuma Group 12th Medium-Term
Management Plan ̶ An Overview

12 12th Medium-Term Management Plan and
CSR Topics
17 Corporate Information
19 History
21 The Takuma Group Network

Takumaʼs technology, we continue to create products with new

Going forward, we will provide that value to customers throughdeveloped since our founding in areas such as combustion, waste

45 Corporate GovernanceCorporate GovernanceInternal Control /Compliance & CSR Promotion Structure
Risk Management Structure
Business Continuity Plan (BCP) /IR Activities
Directors and Executive Ofﬁcers

65 Participation in the Community
66 Contribution to Society
67 Financial Data
73 Outside Expert Opinion
Outside Expert Opinion
Response to the Outside Expert Opinion /Takuma Corporate Proﬁle & CSR Report 2017
Questionnaire Survey Results /Editorial Policy

Human Rights and
The Environment
Labor Practices

treatment, and water treatment.

41 CSR Activities for the Future
CSR Activities for the FutureGroup Company CSR Topics

63 Consumer Issues
Activities Involving Product Quality

Corporate
Governanceplants that take advantage of the proprietary technologies we have

29 Introduction to Takumaʼs Businesses
1. Municipal Solid Waste Treatment
Plant Business
2. Energy Plant Business
3. Water Treatment Plant Business
4. Activities of Our Overseas Business

CSR Activities
for the Future

value today.

23 Feature: "The King of Boilers"
Tsunekichi Takuma and His Company

61 Fair Business Practices
Compliance & CSR Promotion Education /Compliance Measures
CSR Awareness Survey /In-house Reporting System /Material Procurement Policy

Introduction to
Takumaʼs
Businesses

By passing down this philosophy over time and augmenting it with

57 The Environment
Basic Environmental Policy /Environmental Management
Takumaʼs CO2 Reduction Technologies
Environmental Reporting

The Takuma
Feature: "TheGroup Network King of Boilers"

to a product that had to be imported until that time.

3

51 Human Rights and Labor Practices
Respect for Human Rights and theAbolition of Discrimination /Working with Our Employees
Efforts for Occupational Safety and HealthHistory

produced entirely in Japan by bringing expertise and technology(Cover: Imabari City Waste Management Center)

Corporate
Information

Founder Tsunekichi Takuma invented the ﬁrst boiler to be

12th Medium-Term
Message fromTop Management Management Plan

Bringing new value tosociety with +TAKUMA

Contents

Fair Business
Practices
Consumer Issues
Participation in the
Financial Data
Community/
Contribution to Society
Outside Expert
Opinion1

TAKUMA CSR Report 2018

TAKUMA CSR Report 20182

Message fromTop Management

Message from Top Management
We are working to achieve sustained growth
together with society through the policies outlined
by our new Medium-Term Management Plan.

In the corporate vision adopted in 2012, the Takuma
Group embraced the goal of continuing to play an essential
role for society as a leading company in the utilization ofrenewable energy and in the ﬁeld of environmental
protection and of achieving ordinary proﬁt of JPY 10.0
billion in FY2020. Under our 11th Medium-Term
Management Plan (FY2015 to FY2017), which identiﬁed
the realization of sustained growth as a top priority, we
worked to expand our businesses in terms of both quality
and quantity in order to achieve that corporate vision
through the six policies set forth in the plan, including
maintaining and expanding our market position in the
EPC* business and expanding businesses that generatebase proﬁts.

In our EPC business, we ﬁrmly harnessed robust demand
to drive orders, allowing us to secure a certain position in
the various markets we serve while building a foothold to
expand that position by capturing orders for multiple large
biomass power plants and sludge-fueled power plants. In
businesses that generate base proﬁts, we pursued
initiatives to expand those proﬁts in an effort to maintainand increase proﬁtability, for example by developing abusiness foundation and strengthening our maintenancecapabilities. As the result of these initiatives, we were able
to steadily expand our business in terms of both quality
and quantity, and to achieve our targets for consolidated
order value and consolidated ordinary proﬁt under ourquantitative plan.

■ About the new Medium-Term Management Plan
This April, the Group embarked on the 12th
Medium-Term Management Plan (FY2018 to FY2020),
which embodies the ﬁnal stage of its current medium- andlong-term vision (corporate vision). Although we expect
demand to remain robust during the years covered by theplan, we also anticipate that the business environment will
undergo major changes as Japanese policy and social
structure continue to evolve over the medium and longterm. The plan identiﬁes ﬁve policies to boost the Groupʼsstrength so that we can achieve our corporate vision andsubsequently realize steady growth in light of the futurechanges we expect to see in the business environment.
The ﬁrst policy is to strengthen and expand our revenue
foundation. The Groupʼs products̶that is, waste treatment
plants, water treatment plants, and boiler plants̶serve associal infrastructure and as a base for companiesʼ businessactivities. Most products remain in use for a long time
following their delivery to customers, often 20 or 30 years,
and our ability to provide sustained, high-quality
after-sales service to ensure that those products function
longer and more effectively contributes to our customersʼ
proﬁts as well as our own, providing a basis for stable,
long-term proﬁts. By supplying high-quality solutions
throughout the plant and product life cycle in order toprecisely meet customersʼ diversifying needs, we will work
to further strengthen and enhance our revenue base.
The second policy is to achieve sustained growth. Overthe approximately 80 years since its founding, the Group
has supplied products built around a core of technologythat have earned recognition for their high value, giving it
an essential role in society. Drawing on strengths including
the technology, track record, experience, and expertise
accumulated through our business activities to date, wewill achieve sustained growth by continuing to develop
unique technologies, services, and business models;creating value for customers; and securing and creatingcompetitive advantages by rapidly accommodating changes
in the business environment, for example in the form ofevolving needs and the emergence of new social issues.
The third policy is to increase productivity, for example
by reforming business processes. The Groupʼs businesses
are changing dramatically in response to changes in thebusiness environment, including structural changes such as
the aging and shrinking of Japanʼs population and atendency for customersʼ needs and social issues to become
more sophisticated and diverse. To address these changes,
we will seek to more effectively utilize human resources
and to provide higher value to customers by boostingproductivity by radically reviewing and rebuilding businessprocesses that have become more complex and focusing on
higher-added-value operations.

The fourth policy is to use human resources more
effectively. In addition to hiring and training the morediverse workforce that will be essential for the future
development of our businesses, we will work to put in placean environment that allows each and every employee to dotheir jobs in an energetic and engaged manner so that they
can take full advantage of their skills and abilities.
The ﬁfth policy is to continue to pursue compliancemanagement. The Group has consistently considered
compliance to be a key basis for corporate activities, andthe last several Medium-Term Business Plans have included
policies that address this area in an effort to ensure thepenetration and implementation of associated measures. A
sustained program of awareness-raising and educational
activities has helped compliance awareness to take root
throughout our organization, and we will continue topursue improvements so the trust that our quality andother accomplishments inspires will remain unshaken. In
addition, we will work to ensure that enhanced awarenessof the importance of compliance permeates the company
even more deeply by effectively implementing andutilizing mechanisms such as our in-house reporting
system and CSR awareness questionnaire survey.

■ Responsible corporate management
Through the current Medium-Term Management Plan
the Group is working to build business and management
platforms that will be resistant to future changes in thebusiness environment. In order for us to achieve thosepriorities, I believe that it will be important for us to live up
to the trust placed in us by all stakeholders, including
customers, shareholders and investors, business partners,
employees, and local communities, in a spirit of good faith.
To that end, we will work aggressively to implement
corporate governance, compliance, and risk management
in a way that serves as a basis for our corporate activities
going forward.

*EPC business: A business in which Takuma offers turnkey service extending from plant design to procurement and construction.

3

TAKUMA CSR Report 2018

TAKUMA CSR Report 20184

Message fromTop Management

Message from Top Management■ Achieving sustained growth together with society
Takuma has been a signatory to the United Nations
Global Compact since 2006, and we support its 10
fundamental principles in the 4 areas of human rights,
labour, environment, and anti-corruption. We will work todevelop our business while understanding and respecting
these globally shared principles. In addition, concerning
the implementation of the Sustainable Development Goals(SDGs) adopted by the United Nations and the provisionsof the Paris Agreement adopted at COP21, the Group is
helping resolve social issues with technologies for reducing
emissions of the greenhouse gas carbon dioxide throughhigh-efﬁciency generation of electricity using waste andbiomass.

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 membersof society.
Reference: UN Global Compact
http://www.unglobalcompact.org/

In closing, in compiling this CSR Report we have sought
not only to provide a resource by means of which a broad
range of stakeholders could learn more about the Takuma
Groupʼs activities, but also to help each and every Group
employee think carefully about CSR and bring thatperspective to bear in his or her work. We at the Takuma
Group encourage 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 2018

Takaaki Kato

President and CEO
Takuma Co., Ltd.

Sustainable Development Goals (SDGs)
The Sustainable Development Goals (SDGs) are a series of international goals covering the time period of 2016 to 2030 as
described in “Transforming Our World: The 2030 Agenda for Sustainable Development,” which was adopted at a UN summit in
September 2015. The SDGs were intended to pick up where the Millennium Development Goals (MDGs), which were
formulated in 2001, left off. They consist of 169 targets organized around 17 goals for achieving a sustainable world, built
around the pledge of leaving no one behind. Intended to be implemented not only by developing nations, but also by
advanced nations, they are universal in scope, and Japan is working actively to implement them.
Takuma, too, is working to further progress toward the SDGs through its business activities. (The “Introduction to Takumaʼs
Businesses” section on pages 29 to 40 of this report includes icons representing the SDGs that are related to each business.)

Company Motto

Value Technology, Value People, Value the EarthManagement Principles
Takuma will strive for social contribution, corporate value enhancement, long-term corporate development and thesatisfaction of all stakeholders by providing goods and services that are needed and recognized as valuable in society.
The founding spirit of Takuma was “Service to the nation through boiler manufacturing,”* which in present-day languagemeans “contribution to society by supplying goods and services that we yield.” This spirit can also be applied to the concept ofCorporate Social Responsibility (CSR) that in recent years has become a vital issue for corporate management. The management
principles of the Takuma group companies are all based on the said founding spirit.
* Service to the nation through boiler manufacturing
It was the Company Motto of Takuma, then Takuma Boiler Manufacturing Co., Ltd., founded by Mr. Tsunekichi Takuma, one of the ten great
inventors of Japan during the Meiji and Taisho periods (1868‒1926).

Takuma Group Ethics Charter
Takuma and the Takuma Group companies believe that it is essential for the sound development of the groupthat all of the directors and employees remain aware of our social responsibilities and the circumstances
surrounding us as well as act in response to social ethics complying with applicable related laws and ordinances.
Bearing the above in mind, we have established and will promote this ethics charter as our code of conduct,aiming to realize our management principles.
1. We shall strive for proactive social contribution while establishing a harmonious coexistence with the global environment as good
corporate citizens.
2. We shall act in good faith in accordance with sound business custom, while complying with applicable laws and regulations andcommitting ourselves to fair, transparent and free competition, as well as conducting lawful business activities.
3. We shall never have any relationship with antisocial forces or organizations, which may pose a threat to the social order and security ofcivil society.
4. We shall respect fundamental human rights and never practice discrimination.
5. We shall strive to provide high quality products and services, based on our advanced technologies, to attain high acclaim and conﬁdence
from our customers.
6. We shall strive to disclose corporate information to shareholders and investors through investor relations (IR) and other activities on atimely and equitable basis.
7. We shall strive to protect corporate properties as well as information, while never using either for improprieties or any unjustiﬁable
purpose other than normal business operations.

Takuma Group Code of Conduct
Harmony with society
1. Coexistence with the global environment
2. Coexistence with international society
3. Practice of social contribution activities

Practice of customer satisfaction
12. Safety of products and services as well as
ensuring reliability
13. Policies concerning advertising

Practice of compliance with laws and ordinances as well
as sound economic activities
4. Free competition and fair trade
5. Relationship with politics and public
administration
6. Policies concerning business entertainmentand gift-giving
7. Prohibition of involvement in anti-social activities
8. Appropriate export and import transactions

Making appropriate disclosure of information
14. Transmission of corporate information
15. Ensuring reliability of ﬁnancial reporting
16. Prohibition of insider trading

Respect for basic human rights
9. Prohibition of discriminatory actions
10. Respect for individuality, personal quality, andprivacy
11. Safe work environment

5

TAKUMA CSR Report 2018

Protection of corporate properties and information
17. Management and proper use of corporate
properties
18. Handling of conﬁdential information
19. Intellectual property protection

TAKUMA CSR Report 2018

6

Takuma Group 12th Medium-Term Management Plan ‒ An Overview (FY 2018 to 2020)

1 Initiatives to implement policies

Creation ofcustomer value

Build upon our previous results to further improve our business in termsof both quantity and quality in order to achieve sustained growth.

●●

Further enhancement of thecompanyʼs ﬁnancial strength● Human resources management● Cultivation of a robust
organizational culture●●●

Accommodation ofenvironmental changes
and risk management

We expect to see continued robust demand in the Groupʼs principal business domains.
At the same time, the business environment is expected to undergo major changes over the medium and long term,
including changes in demand in response to evolving national policies and the structure of society, increased reliance oncomprehensive contracts due to a trend to outsource government services, and increasing sophistication and diversity incustomer needs.

●

Waste treatment
plants(Japan)●●●Water treatment
plants(Japan)●●●Boiler plants(Japan)Creation of customer value ● Ongoing innovation
Accommodation of environmental changes and risk management

●

●

●

Boiler plants(overseas)

Results and issues●●

Waste treatment
plants(overseas)

In our EPC business, we established a certain position in the markets we serve bysteadily harnessing robust demand to drive orders.
● We built a foothold to expand our presence by capturing orders for multiple large
biomass power plants and sludge-fueled power plants.
● Businesses that generate base proﬁts allowed us to generally achieve the proﬁttargets outlined in the plan, contributing to stable consolidated earnings.
● Preparing a stage for overseas expansion and developing human resources continue
to be important issues.
● We maintained a certain level of equity ratio thanks to continued proﬁtability.
● Efforts to secure adequate manpower, for example through midcareer hires, as a way
to accommodate growth in orders faced difﬁculty due to a shortage of workers. Tightlabor conditions persisted.
● Compliance and CSR awareness spread throughout the Group thanks to ongoing
initiatives.
●

Package boilers(general-purpose
boilers)

Biomass Power Plant

Equipment andsystems●●

There will continue to be demand from FIT projects.
The number of plants targeted for maintenance will continue to growas more plants come online.
Demand for plant operational management and O&M will grow.
Demand for biomass power plants in Southeast Asia will remain robust.
Our ﬂagship bagasse-ﬁred boiler plants will continue to face intensecompetition, especially from manufacturers in countries such as India
and China.
Demand for Waste to Energy will grow in Southeast Asia due to
growing urbanization, and an increase in, and diversiﬁcation of, waste.
Market development will be gradual due to institutional and ﬁnancial
issues, amongst others.
A certain level of demand will continue due to factors such as renewal
demand even as the Japanese market matures.
Demand for energy-conserving boilers will grow overseas particularlyin emerging nations.
A certain level of demand will continue for both building equipment
and semiconductor manufacturing equipment as construction demandrises and investment in the semiconductor industry expands.

●

Sales

Line indicating ordinary proﬁt of
JPY 10 billion

7

●

●

●

●
●

●

●

●

●

●

●

Comprehensive contracts for plant construction and operation,such as PPP/PFI arrangements, will become more common.
There will continue to be demand for energy conservation, energy
creation, and resource use.
Demand for renewable energy will continue as society works toachieve a new energy mix by 2030.
Use of regional distributed biomass will continue.
There will continue to be a certain level of demand for renewal andfuel conversion of existing plants.
There will continue to be a certain level of demand against the
backdrop of rich biomass resources.
Demand for using a variety of fuels such as EFB will grow.

The market will expand as economies grow.

The Japanese market will contract due to the aging and shrinkingof the countryʼs population.
The market will expand further as emerging nationsʼ economies
grow.
A certain level of demand will continue for both building equipment
and semiconductor manufacturing equipment.

The plan represents the ﬁnal stage of the current medium- and long-term vision (corporate vision), for which FY2020 is the target year.
During its three years, we will achieve the vision and boost our corporate capabilities to prepare for steady growth in the
future in response to future changes that are forecasted to occur in the business environment.

Previous medium-and
long-term vision

Current medium- and long-term vision (corporate vision)

Next medium- andlong-term vision

Ordinary proﬁt of JPY 10 billion in FY2020 (Build structures capable of consistently earning ordinary
proﬁt of at least JPY 10 billion even as the business environment undergoes major changes.)

2010

2011

2012

2013

2014

2015

2016

12th Medium-Term Management Plan
(FY2018 to FY2020)2017

11 Medium-Term Management Plan
(FY2015 to FY2017)th(Billion JPY)
10th Medium-Term
Management Plan results(2012 to 2014)●

Renewal and service life elongation demand will eventually fall off.
The market will contract due to the aging and shrinking of Japanʼs
population.
The trend to outsource government services (by making use of theprivate sector) will gain momentum.

Aim to maintain our role of being an indispensable presence in society as a leading company in the ﬁeld of renewable energy utilization and environmental protection.

2009
9th Medium-Term
Management Plan results(2009 to 2011)●

Sewage Sludge-Fueled Power Plant

Ordinary proﬁt

Business volume expanded steadily against a
backdrop of robust demand. Order value
signiﬁcantly exceeded the plan, while the orderbacklog grew to the JPY 200 billion level.
● In terms of quality, we achieved the level of
proﬁt outlined in the plan and made smooth
progress toward our goal of reaching ordinary
proﬁt of JPY 10 billion in FY2020.

●

Renewal demand will increase as sewage treatment plants age.
Demand for converting sewage sludge into energy will grow.
PPP arrangement (that make use of the private sector) will beembraced by the sewer industry.

●

3. Positioning of the 12th Medium-Term Management Plan

Order value●●

Renewal and service life elongation demand will continue as facilities age.
There will continue to be demand for more efﬁcient energy use andadditional functionality (development of disaster prevention andperipheral facilities, etc.).
Comprehensive contracts for plant operation, for example in the formof DBO and O&M arrangements, will become more common.

*DBO : Design Build Operate / O&M : Operation & Maintenance / PPP : Public Private Partnership / PFI : Private Finance Initiative / FIT : Feed-in Tariff /EFB : Empty Fruit Bunch●

2 Quantitative results

Future (medium and long term)

Current 3-year period(12th Medium-Term Management Plan)

Management base

Maintenance and expansion ofmarket position in the EPC business● Expansion of businesses thatgenerate base proﬁts● Initiatives that target growthmarkets●

Ongoinginnovation

Leveraging the companyʼs total capabilities

Initiatives of the 11th Medium-Term Management Plan (2015 to 2017)

2. Business Environment

12th Medium-Term
Management Plan

1. Reﬂections on the 11th Medium-Term Management Plan

11th Medium-Term Management Plan results

2015

2016

2017

Total

11th Medium-Term
Management Plan
targets

Order value

257.8

371.0

99.9

191.0

177.1

468.0

400.0

Sales

285.2

296.5

113.0

116.3

118.1

347.5

360.0

Ordinary proﬁt

13.7

25.7

9.6

11.6

10.6

31.9

27.0

Order backlog

78.1

152.5

139.4

214.1

273.0

−

−

10th Medium-Term Management Plan
(FY2012 to FY2014)
9th Medium-Term Management Plan
(FY2009 to FY2011)
Proﬁtability throughselection andconcentration of resources

Reinforcement of businessfoundation for stability
and proﬁtability
Cumulative ordinary proﬁt results

Steady expansion interms of both quantityand quality
Cumulative ordinary proﬁt results

Strengthening ofcorporate capability tofacilitate steady growth

Consistently secure annual
ordinary proﬁt of at least JPY
10 billion.

Cumulative ordinary proﬁt target

JPY 33.0 billion

JPY 31.9 billion

JPY 25.7 billion*Order backlog ﬁgures are provided for the last year of each Medium-Term
Management Plan and for the end of each ﬁscal year.

TAKUMA CSR Report 2018

TAKUMA CSR Report 20188

Takuma Group 12th Medium-Term Management Plan ‒ An Overview (FY 2018 to 2020)●

By undertaking ﬁve new policies in line with the three perspectives continued from the 11th Medium-Term Management
Plan, we will strengthen proﬁtability and competitiveness while working to strengthen our management foundation, with afocus on effective use of human resources. In this way, we will strive to achieve our medium- and long-term vision whilebuilding a robust business and management foundation in response to future changes in the business environment.

■ Policies■ Perspectives for achieving our policies

Strengthening and expanding ourrevenue foundation

Creation of customer value
Strive to create new value from the customersʼ perspective andavoid price competition by working closely with, anddeveloping a deep understanding of, customers.

Achieving sustained growth
Many of the Groupʼs products are used for a long period of time, for example for 20 or 30 years from the time of delivery.
Offering high-quality after-sales service in an ongoing manner so that customers can use those products more effectively andover a longer period of time contributes to both customersʼ and the Groupʼs proﬁts, helping to create a foundation for stable,
long-term earnings.
We will work to further strengthen and expand our revenue foundation by continuing to provide high-quality solutions
throughout the plant and product life cycle as we meet customersʼ diversifying needs in an individualized manner.

Over the 80 years since the Groupʼs founding, we have built a reputation as an essential part of society by providing productsthat are recognized for their value utilizing our technologies which are the core part of our company.
We will create customer value by continually developing unique technologies, services, and business models based on
Takumaʼs strengths such as the technologies, track record, experience, and expertise that weʼve accumulated through ourbusiness activities to date. In addition, we will work to secure sustained growth by securing and creating competitive
advantages as we respond quickly to changes in the business environment, such as evolving customer needs and emerging
social issues.

12th Medium-Term
Management Plan

4. Policies of the 12th Medium-Term Management Plan

Ongoing innovation

Increasing productivity, for example byreforming business processes

Achieve sustained differentiation by pursuing innovation interms of both technologies and business models, and leveragethat differentiation to create the value demanded by customers.

Using human resources effectively

Accommodation of environmental changes andrisk management

Continuing to pursue compliancemanagement

Adapt to changes of the business environment in which thecompany operates (e.g., changes in the economic climate,revisions to applicable laws, and changes in customer needs)
and strengthen initiatives to treat such changes as business
opportunities.

Achieving our vision
Building a business and management foundation that is resilient during change

5. Financial Target
The nature of the Groupʼs businesses is undergoing major evolution as the business environment changes, for example due
to changes in social structure such as the shrinking and aging of Japanʼs population and the emergence of more advanced anddiverse customer needs as well as social issues.
We will strive to improve productivity, make effective use of human resources, and further increase the level of value we
provide by fundamentally reviewing and rebuilding business processes that have become increasingly complex in order toaccommodate these changes while focusing on businesses with higher added value (which will help us create and provide
value).

We will work to hire and train the diverse workforce that will be essential as we develop the Groupʼs businesses going
forward. At the same time, we will strive to create an environment that keeps individual employees engaged in their work andable to make full use of their skills and abilities (by cultivating a healthy workplace culture, reforming individual awareness,and facilitating fulﬁlling workstyles).

Target: 3-year cumulative consolidated ordinary proﬁt of JPY 33 billion
500

The 12th Medium-Term Management Plan, which
represents the ﬁnal stage of our current mediumand long-term vision, establishes the above targets
to guide our achievement of the visionʼs goal of
consistently earning ordinary proﬁt of JPY 10 billion
while simultaneously directing the company toutilize all its resources to build a robust businessand management foundation in response to futurechanges in the business environment.
Order value (left scale)
Sales (left scale)
Ordinary proﬁt (right scale)

The Group considers compliance to be a key foundation of its corporate activities, and weʼve worked to spread awarenessand foster adoption of good practices by including compliance as a policy in the last several Medium-Term Management Plans.
Awareness of the importance of compliance has steadily taken root among our employees thanks to ongoingawareness-raising and educational activities, and we will continue to pursue such initiatives to ensure that the trust weʼve built
up in our quality and integrity remains unshakable. In addition, we will work to further spread and improve complianceawareness throughout the Group by effectively implementing and utilizing mechanisms such as our internal reporting system
and CSR awareness survey.

9

TAKUMA CSR Report 2018

(Billion JPY)

50

400

40

300

30

200

20

100

10

0

10th Plan

11th Plan

0

12th Plan(Billion JPY)
10th Medium-Term Management Plan results

11th Medium-Term Management Plan results

12th Medium-Term
Management Plan

2012

2013

2014

Total

2015

2016

2017

Total

FY2018 to FY2020

Order value

109.2

148.0

113.7

371.0

99.9

191.0

177.1

468.0

Sales

96.3

96.3

103.8

296.5

113.0

116.3

118.1

347.5

JPY 400 billion (approx.)(3-year cumulative total;reference value)

Ordinary proﬁt

7.1

9.4

9.1

25.7

9.6

11.6

10.6

31.9

Target: JPY 33 billion(3-year cumulative total)

TAKUMA CSR Report 201810

Takuma Group 12th Medium-Term Management Plan ‒ An Overview (FY 2018 to 2020)

Municipal Solid Waste Treatment Plant Business
As facilities age, there is ongoing robust demand for renewal
and service life elongation.
● Volume is growing for DBO projects as well as O&M services
for existing facilities.
●

Strengthen the proﬁtability of our plant operation business.
● Further strengthen initiatives to prolong the service life of facilities.
●

12th Medium-Term
Management Plan

6. Core Business Units and Emphasis of Future Activities
Waste Treatment Plant Business (Overseas)

Waste-to-Energy Plant(DBO Project)
Treatment capacity: 174 tons per day
Generating capacity: 3,800 kW

Waste-to-Energy Plant(Primary equipment improvement project)
Treatment capacity: 810 tons per day
Generating capacity: 17,200 kW●●●

There is a growing need for proper waste management and energy
utilization against a backdrop of growing urbanization, increase ofwaste volume, and diversiﬁcation of waste characteristics.

Build structures to facilitate collaboration with partner companies.
Build schemes for entering new markets.

Waste-to-Energy Plant (UK)
Treatment capacity: 1,370 tons per day
Generating capacity: 36,650 kW

Waste-to-Energy Plant (China)
Treatment capacity: 1,600 tons per day
Generating capacity: 30,000 kW

Package Boiler Business

Water Treatment Plant BusinessWe are continuing to see a certain level of demand in Japan,
particularly in terms of renewal demand.
● The need for energy-conserving boilers is increasing overseas,
particularly in developing nations.
●

There is growing demand for sludge incineration plants thatconserve and create energy.
● There is increasing use of PPP/PFI arrangements in thesewer business.
●●●

Strengthen the competitiveness of our sludge-fueled power system.
Scale our waste management expertise horizontally to otherbusinesses.

Sludge-Fueled Power System
Demonstration Plant
Treatment capacity: 35 wet tons per day(with moisture content of about 70%)
Generating output: About 100 kWh/hMoving Bed Upﬂow Continuous
Sand Filtration System (high-speed)
Treatment capacity: 29,500 m3 per day

Boiler Plant Business ( Japan)

Super Eqos EQi Series

Maintain and expand our domestic business.
● Expand our overseas business.
●

Super Vacotin Heater
GTL Series

12th Medium-Term Management Plan and CSR Topics
This section introduces how Takumaʼs management and the management of major Group companies view CSR issues andhow they are working to resolve them as they strive to pursue their respective missions under the 12th Medium-Term
Management Plan, which began in FY2018.

FIT demand remains robust.
The number of plants targeted for maintenance is increasing as
facilities are completed and transferred to customers.
● There is growing demand for plant operational management
and O&M.
●●

Capture new orders for FIT biomass plants.
Strengthen our maintenance structures.
● Scale our waste management expertise horizontally to otherbusinesses.

Wood Chip Biomass Power Plant
Generating capacity: 22,100 kW●●

Wood Chip Biomass Power Plant
Generating capacity: 1,990 kW

Koji Tanaka Executive Manager, Corporate Services Division
The Corporate Services Divisionʼs mission is to help boost proﬁts throughout the Group by providing services to its
various departments, for example so they can more effectively utilize information and other management resources andpractice legal risk management. To that end, it is called upon to provide higher-quality services to help achieve steady
growth and to enhance the Groupʼs capabilities.
Due to the extensive scope of these operations, the Divisionʼs activities encompass a variety of CSR issues, including withregard to strengthening relationships with shareholders, BCP, information security, and reducing risk. Particularly importantpriorities under the current Medium-Term Management Plan address human resources, an area that plays an essential role as
the basis of all business activities, including hiring practices and training programs as well as the development of anenvironment that will allow each and every employee to do his or her job in an energetic and engaged manner and to takeadvantage of his or her skills and abilities, while simultaneously facilitating improvements in productivity.

Boiler Plant Business (Overseas)
Tsuyohito Nishiyama Executive Manager, Corporate Planning & Administration Division
Demand for biomass power plants in Southeast Asia remains robust.
● Our ﬂagship bagasse-ﬁred boiler plants continue to experience
intense competition.
●

●
●

11

Capture orders continually by creating competitive advantages.
Strengthen the ability of our local subsidiary (SIAM TAKUMA) tocarry out its business operations.

TAKUMA CSR Report 2018

Bagasse-Fired Boiler Plant(Thailand)

Bagasse-Fired Boiler Plant (Thailand)

The current Medium-Term Management Plan sets forth ﬁve policies to address the theme of strengthening corporate
capability to facilitate steady growth.
Strengthening the Groupʼs corporate capabilities encompasses the meaning of transforming Takuma so that it will beuniversally recognized as a good company, and the only way to do that is not only to pursue performance metrics, forexample by increasing sales and proﬁts, but also to participate actively in the process of addressing social needs.
We are seeing a shift in how the world determines corporate value in the form of a move from tangible assets tointangible assets, and one key area of risk that the world recognizes now is the environment.
The Group is keenly attuned to these social trends, and as we pursue a range of initiatives to make Takuma a better
company, we will be fulﬁlling our responsibilities by working to resolve social issues in the areas of renewable energy
utilization and environmental protection.

TAKUMA CSR Report 201812

Takuma Group 12th Medium-Term Management Plan ‒ An Overview (FY 2018 to 2020)

Corporate Marketing GroupEngineering Group

Kengo Numata Executive Manager, Corporate Marketing Group & Business Administration Division & Environmental Plant Division

Hiroaki Nanjo Executive Manager, Engineering Group & Management CenterWe are seeking to increase Takumaʼs corporate value and to achieve sustained growth by formulating and executing abusiness strategy that will earn us the trust of a broad range of customers and other stakeholders.
For example, our ability to consistently supply high-quality solutions throughout the plant life cycle while responding
precisely to changes in the market environment and evolving customer needs yields mutual proﬁts for both customers
and the Group over the long term.
At the same time, maintaining and expanding our market position in such EPC markets as waste treatment plants andbiomass power plants will allow us to make a signiﬁcant contribution to the resolution of a variety of current social
issues.
By formulating and executing these business strategies, I believe we will be able to build a business platform that is
resistant to change so that we can continue to develop as a company that plays an essential role in society.

Hidetoshi Tomita Deputy Executive Manager, Environmental Plant Division
The Paris Agreement, which seeks to eliminate the worldʼs dependence on fossil fuels, entered into force in 2016, andTakuma, too, has an obligation to pursue corporate activities to help achieve its goals. The Environmental Plant Division
will help bring about a recycling-based society through the current Medium-Term Management Plan. We will reduce
environmental impacts by working to eliminate and reduce greenhouse gases, speciﬁcally through advanced thermal
recovery with high-efﬁciency power generation in waste treatment plant construction, through the reduction of CO2
emissions in core facility improvement projects at existing plants, and through power generation using incineration heatat sewage sludge incineration plants. In addition, we will coexist alongside local residents through our DBO business byutilizing waste treatment facilities as places of environmental awareness-raising and as disaster prevention facilities intimes of large-scale disasters, and by performing daily maintenance in an appropriate manner. Finally, we in theEnvironmental Plant Division look forward to fulﬁlling our social responsibility to help realize a recycling-based society
by providing high-quality products and services.

Mitsuaki Adachi Executive Manager, Energy Plant Division
Takumaʼs energy business has utilized the FIT scheme to deliver numerous biomass power plants, and we continue todo so today. Under the current Medium-Term Management Plan, we will prioritize a permanent approach to plant
operation, including by continuing to accept orders and by enhancing maintenance business structures for operational
plants, so that these facilities can serve as the foundation for clean energy.
We see our role with regard to a sustainable society as contributing to society by resolving issues through ourbusinesses, for example by contributing to environmental protection by reducing CO2 emissions through the use ofrenewable energy in response to speciﬁc measures by governmental agencies to achieve the Sustainable Development
Goals (SDGs), including by promoting use of renewable energy, addressing climate change, and building a
recycling-based society.

Takashi Manabe Executive Manager, International Operations Division
The International Operations Division has identiﬁed a number of priorities as it works to implement the current
Medium-Term Management Plan.
First, reﬂecting our belief that addressing compliance, safety, and environmental issues is a given, we are working todevelop our overseas businesses in a way that accords with local practices while understanding and respecting thecommercial customs, religion, culture, and values in the countries where we do business.
Next, we will help address environmental and energy issues and realize a recycling-based society by working to create
renewable energy and to improve the local waste treatment environment through the supply of biomass boilers such as
bagasse-ﬁred boilers and waste incineration plants that incorporate exceptional technologies.
Finally, we will strengthen our solutions-based sales initiatives, which are conceived to offer high added value basedon customer needs.
We will fulﬁll our social responsibility by contributing to the sustained development of other countries through these
initiatives.

13

TAKUMA CSR Report 2018

12th Medium-Term
Management Plan

12th Medium-Term Management Plan and CSR Topics

The Management Center is responsible for cost management and overall process management. Even as we continue to
see robust demand for products such as biomass boilers and municipal solid waste treatment plants, the businessenvironment is changing along with the structure of society. We will work to achieve a competitive cost structure by
optimizing costs to facilitate sustained growth. To that end, we will monitor pricing trends as they relate to supplies,
equipment, construction, and other costs and apply that information precisely to the processes we use to establish
quotation costs and manage working budgets. We will also work to limit risk by focusing on process management andcost progress management, including for civil engineering construction work.
In our overseas businesses, we will work to differentiate our offerings from those of our competitors by increasing thecompetitiveness of our boiler plants. With regard to waste treatment plants, we will study structures for facilitating
cooperation with partner companies and work to develop schemes for entering new markets.

Akira Taguchi Executive Manager, Technology Center
The Technology Center is responsible for a swath of operations ranging from the development of Takumaʼs coretechnology products to design while surveying and monitoring the latest social needs.
In recent years, we have seen a trend toward proper processing of waste and hazardous materials in the environmental
sector, along with a growing focus on reducing waste generation, reusing waste, and reducing waste volume. In theenergy sector, the trend is toward making use of fuels and energy sources that have gone unutilized in the past, and on
creating new types of energy. Against this backdrop, Takuma will continue to consistently ship environmentally friendly
products while making use of, and further developing, its stable of core technologies in areas such as combustion,
incineration, boilers, and exhaust gas treatment.

Hideki Takeguchi Executive Manager, Project Center
The equipment and plants that Takuma provides effectively utilize waste products and byproducts from human life andproduction activities, including municipal waste, industrial waste, sewage sludge, and biomass, to create the utilities̶
electricity and heat̶that people need to live and that economies need to grow. In this way, we are able to givesomething back to society.
Today, as we ﬁnd ourselves faced with the need to further increase use of renewable energy as one way to protect the
Earthʼs environment, the Project Center is working to help build a society where future generations can enjoy rich andfulﬁlling lifestyles, including by supplying plants designed to further the realization of a recycling-based society and to
reduce CO2 emissions, for example by generating power from municipal solid waste, sewage sludge, and biomass, and bycreating and developing the technologies and processes that will help expand the markets for such plants.

Norito Uchiyama Executive Manager, Engineering Center
The Engineering Center will promote the streamlining of speciﬁcations and design work in a way that takes life cycle
cost into account and provides technologies with value in terms of equipment and control by analyzing plant data andutilizing information and communications technology (ICT). We will also realize stable operation and management overthe long term by promoting energy savings at all types of facilities and providing solutions that deliver exceptional
economic performance at a high level of efﬁciency.
We will also pursue open innovation in an effort to fulﬁll our social responsibility as a corporation by adopting a global
perspective and working in partnership with Group companies, afﬁliates, and other organizations to accommodatechanges in the business environment.
To help realize a low-carbon society, we will strive to bring innovation to processes and products and to develop
products that satisfy all stakeholders.

Ryoji Tani Executive Manager, Construction Center
The current Medium-Term Management Plan calls on us to reliably fulﬁll a large order backlog and to accommodate arobust ﬂow of new projects, signaling an environment in which we are fortunate to be able to do business. At the sametime, that environment raises concerns about waning job enthusiasm due to a heavy workload, the unfortunate
occurrence of occupational accidents, and a tendency for human resources training measures to take a back seat to otherpriorities since most projects involve long lead times. Based on these facts, I see our most signiﬁcant issue as the need toensure employee health and safety, to facilitate enthusiasm, and to build solid operational structures that will position us
to take the next step once the current plan is complete. As we work to overcome these challenges, veterans andnewcomers alike will do well to remember and draw encouragement from one of the motivations that drove them to join
Takuma in the ﬁrst place: love for a job involving protecting the environment and utilizing energy effectively.

TAKUMA CSR Report 201814

Takuma Group 12th Medium-Term Management Plan ‒ An Overview (FY 2018 to 2020)

Group Companies
Masahiko Izumi, President and Representative Director
Reﬂecting our philosophy of “Service to the nation through boiler manufacturing,” we strive to contribute to society
through corporate activities in the package boiler segment of the market, and we consider our corporate activities
themselves to be CSR activities.
The current Medium-Term Management Plan sets forth two basic goals in order to increase corporate value: increasing
the size of the company and developing a more advanced level of quality. To achieve these goals, we will develop andsupply safe, high-quality products and services; increase customer and business partner satisfaction; and improve
employee satisfaction in the process while boosting organizational trust. If our products and services enter into evenmore widespread use in society, our contribution in the environmental and energy sectors will grow, helping to increase
our corporate value.
Going forward, we will fulﬁll our CSR by striving to serve as a high-value company for all stakeholders throughcorporate activities such as these.

This page introduces the views of members of our Audit & Supervisory Committee on the policies, priority measures, andother provisions of the current Medium-Term Management Plan, including with regard to initiatives to increase the Groupʼs
corporate value and their expectations and wishes for the future.

12th Medium-Term
Management Plan

12th Medium-Term Management Plan and CSR Topics

Audit & Supervisory Committee Members
Yasushi Enomoto Audit & Supervisory Committee Member (Director)
Having identiﬁed maintaining its role of being indispensable presence in society as a leading company in the ﬁeld of
renewable energy utilization and environmental protection as its corporate vision, Takuma has contributed toenvironmental protection by realizing a diverse range of customer needs and by improving technology through researchand development. We also work to protect the environment via a range of activities that includes limiting energy
consumption and waste emissions and community service programs.
In addition, we are achieving steady results through ongoing initiatives to promote compliance management.
Going forward, we believe that cultivating increased awareness of global needs as our overseas businesses develop, forexample in the form of ESG investment and the UNʼs Sustainable Development Goals (SDGs), and bringing thosepriorities to bear in our businesses will help us contribute to society while increasing our corporate value.

Kazunori Tsuji, President
With 68 ofﬁces, worksites, and other facilities around Japan, we operate and manage facilities under contract. In recent
years, the number of DBO and O&M facilities that we serve in partnership with Takuma Co., Ltd., is increasing, and themanner in which we operate those facilities is changing from the past.
However, our mission of providing safety and stability to customers at each facility we manage and of supervising theoperations with which we are entrusted in a way that inspires customersʼ peace of mind has not changed. To fulﬁll thatmission, all of our employees must come together to harness the full potential of each facility without accident or disasterso that waste products can be treated properly and ever-more-demanding requirements satisﬁed. We will do everything
we can going forward under the current Medium-Term Management Plan to fulﬁll our companyʼs social responsibility.

Hiromichi Satake Audit & Supervisory Committee Member (Outside Director)
The Takuma Group built structures to deliver results on a stable basis through the previous 11th Medium-Term
Management Plan. Under the 12th Medium-Term Management Plan, I expect to see the company strengthen risk
management and develop into an organization that is even more resistant to changes in the business environment.
We are seeing results from our efforts to contribute to society, and it is desirable that we work to ensure those efforts
penetrate every aspect of the Groupʼs operations so that they do not lose their viability. Encouraging all employees tocontinuously think about what they should do and how they should act will allow us to increase our corporate value. Asan outside director, I will work from an independent, fair perspective to strengthen the Groupʼs management andsupervisory functions and to establish CSR management with the goal of precisely understanding stakeholder
expectations and increasing stakeholder satisfaction.

Syusuke Suzuki, President
Our philosophy revolves around helping protect the regional environment by utilizing air-conditioning and sanitaryequipment design and installation technologies.
It is widely recognized that overwork is an issue in the construction industry, of which we are a part. We recognize thisissue as a life-or-death challenge for our company, and we are working to create an environment in which employees canbalance their jobs with their private lives, for example by actively participating in the Work-Life Balance campaign led by
the Tokyo Metropolitan Government. We also continue to run the company in a fair and just manner, with an absolute
focus on compliance. Going forward, we will strive to increase CSR awareness, for example by offering internal classes
designed to foster employeesʼ understanding of Japanʼs legal system.

Osamu Iwahashi Audit & Supervisory Committee Member (Outside Director)
I have served as an auditor and director (as a member of the Audit & Supervisory Committee) at Takuma for six years,
during which time I have drawn on experience I gained during my involvement with law enforcement policy for many
years. I have pursued auditing and other operations primarily from a corporate governance and compliance perspective,
and I believe that an emphasis on CSR is an essential part of corporate management.
Takumaʼs Energy from Waste plants and biomass-fueled power plants make up its core businesses, and the company isfortunate in that these businesses themselves help it fulﬁll its corporate social responsibility. In addition, the company
has actively pursued a broad array of CSR activities, including through solar power installations, research into how waste
gas and heat can be used in crop cultivation, and participation in, and contribution to, regional activities.
Going forward, Iʼm conﬁdent that Takuma will be able to effectively pursue activities that achieve the aims of CSR in its
primary businesses and associated operations.

Yoshiki Kita, PRESIDENT
For half a century, we have created highly clean environments for production processes in the semiconductor andelectronic precision fabrication industries, and we have made broad contributions to society by making possible
improvements in rational production that have helped maintain rich and safe lifestyles while solving environmental andenergy issues by supplying clean equipment and systems. At the same time, we believe that efforts to maintain andpromote compliance provide a crucial basis for the operation of our businesses, and going forward, we will strive on an
ongoing basis to enhance compliance by assessing our operations from an ESG standpoint.
In addition, we will work to help achieve the SDGs through cooperation, contribution, and partnership involving
customers and other stakeholders, both in Japan and overseas.

15

TAKUMA CSR Report 2018

Minoru Murata Audit & Supervisory Committee Member (Outside Director)
We contribute to society by creating value through maintenance of social infrastructure that underpins human
lifestyles and of industrial equipment. The products and services that are the ultimate result of our corporate activities
live up to the standards set by societyʼs expectations, and we have built a track record of success through our efforts toincrease social satisfaction.
At the same time, an increasingly diverse society demands a more sophisticated type of value, and attention now
encompasses not only deliverables, but also the processes that create them (i.e., production processes). To take CSR tothe next level, it will be necessary to increase the satisfaction of the people that participate in the processes that give rise
to deliverables. It will be important to reduce environmental impacts in manufacturing and construction processes, andto improve worker safety and the work environment. Going forward, I believe that taking into consideration stakeholders
such as employees and local residents will help us pursue an even higher level of CSR.

TAKUMA CSR Report 201816

Corporate Information

Business Summary

Name:
Head ofﬁce location:

Environmental and energy business

TAKUMA CO., LTD.
2-2-33 Kinrakuji-cho, Amagasaki, Hyogo 660-0806, Japan
TEL +81-6-6483-2609 FAX +81-6-6483-2751 (operator)
Representative Director: Takaaki Kato, President and CEO
Established:
June 10, 1938
Capital:JPY 13,367,457,968 (as of March 31, 2018)
Main business areas:
The design, construction and superintendence of a wide variety of boilers, plant machinery,pollution prevention plants, environmental equipment plants, and heating and cooling equipment
and feed-water / drainage sanitation equipment and facilities
The design, construction and superintendence of civil, architecture and other works
Number of employees (non-consolidated): 837 (as of March 31, 2018)
Number of employees (consolidated):
3,609 (as of March 31, 2018)

Permits and registrations●

We support the realization of a recycling-oriented society
using advanced waste treatment technologies that meetthe needs of local communities.
Energy from Waste plant
Pyrolysis gasiﬁcation andmelting plant● Resource recycling andcollection plant● Bulky garbage crushing plant● Incineration ash and ﬂy
ash melting plant●●

Waste to solid fuel conversion
plant● Transition and intermediate
processing plant● Raw fuel (biogas) recovery plant● Various types of pollution
prevention equipment■ Industrial waste treatment plants
Using advanced incineration technologies, we can eventreat toxic substances suitably and we are supporting theenvironmental protection efforts of industry.

●●

Industrial waste treatment plant

Head Ofﬁce, branch ofﬁces and other business ofﬁces
Construction license (Minister of Land, Infrastructure, Transport and Tourism license,
Special 27-6129, Special 29-6129)
Construction consultant registration (Minister of Land, Infrastructure, Transport andTourism registration, Construction 26-10202)
First-class architect ofﬁce registration (01A02903)
ISO 9001 quality management system certiﬁcation●■ Municipal solid waste treatment plants

Corporate
Information

Company Outline

Industrial waste treatment plant
Energy from Waste plant

ISO 9001

ISO 14001

JQA-1952
ISO 9001
certiﬁcation

JQA-EM0313
ISO 14001
certiﬁcation

Head Oﬃce, Osaka Oﬃce,
Tokyo Branch, Chubu Branch,
Kyushu Branch, Hokkaido Branchand Harima Factory

Harima Factory

Harima Factory
ISO 9001 quality management system certiﬁcation
ISO 14001 environmental management systems certiﬁcation
Manufacture of thermal equipment for power generation (Ministry of Economy, Trade and Industry)
Permission to manufacture boilers and pressure vessels, permission to manufacture cranes(Ministry of Health, Labour and Welfare)
Manufacture of speciﬁc high-pressure gas facilities (Ministry of Economy, Trade and Industry)
Manufacture of refrigerators (Governor of Hyogo Prefecture)

Corporate structure (as of June 27, 2018)

Bulky garbage crushing plant■ Energy plants■ Water treatment plants

Takumaʼs core technologies are utilized in various types ofboilers, starting with biomass boilers, as well as total
systems.
Biomass boiler● Fossil fuel boiler●

Plant that generates power fromindustrial waste and provides
heat to a plantation

Waste heat boiler● Power plant●

We are working to purify wastewater with a holistic
perspective through a “dialogue with water.”●

Sewage and wastewater
treatment plant● Various types of advanced
sewage treatment plant● Sludge treatment plant●

Sewage sludge-fueled power
plant● Plant to process water thatinﬁltrates ﬁnal disposal sites

Upﬂow moving-bed ﬁltration
systemSewage sludge-fueled power plant

Balance sheet overview andnet sales composition ratios■ Balance sheet overview

Internal Audit Dept.
Compliance & CSR Promotion Div.
Corporate Service Div.
Corp. Planning & Administration Div.
Committee of Executive Ofﬁcers
Board of Directors

President

Audit & Supervisory Committee
Audit & Supervisory Committeeʼs Ofﬁce

Corporate Marketing Group
Administration Div.
Environmental Plant Div.
Energy Plant Div.
International Operations Div.

Management Center
Technology Center
Project Center
Engineering Center
Construction Center
Harima Factory

TAKUMA CSR Report 2018

[Consolidated](Million JPY)
113,088
120,000
80,000Ordinary proﬁt

116,30911,605

118,19810,669(Million JPY)
12,000

9,646

8,000

40,000
0

4,000

2015

2017 (FY)[Non-consolidated](Million JPY)
120,000
80,0002016

72,445 7,406

73,327

8,937

0

0

(Million JPY)
12,00071,479 7,891

40,000Engineering Group17

Net sales

8,000
4,000

2015

2016

2017 (FY)■ Net sales composition ratios(FY2017)
Domestic Environment and Energy
Overseas Environment and Energy
Package Boiler
Equipment and System Business

2.9%

0

6.5%

Biomass power generation boiler

Waste heat boiler

Package boiler

Equipment and systems business■ General-purpose boilers■ Air-conditioning equipment and clean systems

As the convergence of Takumaʼs combustion technologies,
our boilers are a reliable brand that has earned the support
of a wide range of industries.

We provide comfortable, clean environments to customers
in the semiconductor industry as well as many locations
such as universities, research institutions, and hospitals.
Building equipment
Air-conditioning equipment● Cleaning and drying devices

Once-through boiler (Eqos, Super Eqos)● Vacuum-type water heater (Vacotin heater)● Package water-tube boiler● Smoke tube boiler (RE boiler)● Heat-transfer oil boiler (thermoheater)● Radiation heating equipment (strip heater)● Various equipment for ships●

Clean room
Clean devices● Chemical ﬁlters

●

●

●

●

14.6%
76.0%
Vacotin heater

Thermoheater

Super Eqos

RE boiler

Note: These products are handled by Nippon Thermoener Co., Ltd., which
is one of our group companies.

Chemical ﬁlters

Clean oven

Clean booths

TAKUMA CSR Report 201818

History
Sales(Hundreds ofmillions JPY)

Founder Tsunekichi Takuma established our philosophyof “Service to the nation through boiler manufacturing.”
The goal of becoming a technologically driven company
based on that belief has been the basis of Takumaʼsoperations throughout its 80 years of history.

JPY 118.1
billionHistory

1912 to 1950

1,500

FY2017
Sales

1951 to 1971

Tsunekichi began shipping Takuma boilers in
1912, and in 1938 he founded Takuma Boiler
Manufacturing Co., Ltd., with the philosophyof “Service to the nation through boiler
manufacturing.” The corporate stance andphilosophy that form the foundation of Takuma
developed during this period.

Takuma established itself as a manufacturer not
only of boilers, but also environmental andsanitary equipment, for example by developing
waste heat recovery boilers that use waste heatfrom manufacturing plants, developing modern
technology for incinerating solid waste, andentering the water treatment market.

1972 to 1999

1,000

2000 and beyond

In 1972, the company changed its name to
Takuma Co., Ltd., which remains its name to thisday. During this period, Takuma worked todevelop technologies to accommodate a varietyof customer needs, including demand for energy
savings in industry, the growing volume anddiversity of municipal solid waste, and the needfor improvements in water quality by means ofwater treatment equipment.

Takuma continues to provide technology for
utilizing and rendering harmless a variety of
waste products and biomass energy sources
through its businesses in the renewable energy
and environmental protection ﬁelds. The
company has established local subsidiaries
overseas and continues to bring its technologies
to customers not only in Japan, but alsoworldwide, particularly in Asia.

500

1938
Takuma Boiler Manufacturing Co., Ltd. founded*Consolidated accounting introduced in FY1990
1938

1912

1940

1950

The ﬁrst “Takuma
boiler” introduced by
our founder, Tsunekichi
Takuma1960

1949

Company listed on the Osaka andTokyo stock exchanges

1972

1970

1980

Company renamed
Takuma Co., Ltd.

1995

1990

Amagasaki Head
Ofﬁce Building
completed

2000

2004

Takumaʼs ﬁrst “Environmental
Report” issued
The “Takuma Group Code of
Conduct” instituted

2010

2010

2017

Energy from Waste
plant delivered inEurope (U.K.)
Lakeside EfW Plant

Amagasaki Head Ofﬁce Building
Tsunekichi Takuma

1930

Tsunekichi Takuma
commended as one of the ten
great inventors of Japan
during the Meiji and Taisho
periods (1868‒1926)

1953

Head Ofﬁce moved to
Osakaʼs Kita-ku District

1958

Business expanded into theenvironmental facility sectors,
including waste incineration andwater treatment plants

1975

Former head ofﬁce (Dojimahama)

1938

Takuma Boiler Manufacturing Co., Ltd. founded
Company Motto instituted:“Service to the nation through boiler manufacturing”

Bulk production began on“vacotin heater,” theworldʼs ﬁrst vacuum-type
hot water heater

1997

Vacotin heater

1986

The ﬁrst overseas delivery of a waste
treatment facility completed

1998

ISO9001 certiﬁcation obtained

Japanʼs largest Energy from Waste
plant delivered(Tokyo Shinkoto Waste Treatment
Plant Capacity: 1,800 tons per day)

(FY)

2005

2005

Takuma Hanyokikai Co., Ltd., asubsidiary involved in the
manufacture and sale of small
boilers, and Ebara Boiler Co., Ltd.
merged and renamed Nippon
Thermoener Co., Ltd.
The “Takuma Environmental Policy”
instituted
The “Personal Information
Protection Policy” instituted

Feed-in tariff (FIT) program

2012
2012年 launched to facilitate ﬁxed-costpurchases of renewable energy

2013

Operation of the
Takuma Solar Power
Plant began
Takuma Solar Power Plant

Amagasaki Factory

1942

Operation began at
Harima Factory

Harima Factory under construction

1949

19

Bagasse-ﬁred boiler, the ﬁrst
product of its kind in the industry,
exported

TAKUMA CSR Report 20181963

Japanʼs ﬁrst waste
incineration plantdelivered
Sewerage treatment
facility delivered

1992

1999

ISO14001 certiﬁcation obtained for
our Harima Factory

Japanʼs ﬁrst waste
incineration plant

Waste Management and Public

1970年 Cleansing Act and Water Pollution
1970
Control Act enacted

New Company Motto instituted:“Value Technology, Value People,
Value the Earth”

1993年 Basic Environment Act enacted
1993

1999年 Dioxins enacted
1999

Act on Special Measures against

2006

The “Compliance Declaration”
instituted
The “Takuma Group Ethics Charter”
instituted
Takuma participated in the UN Global
Compact

2007 Takumaʼs ﬁrst “CSR Report” issued

2017

Order received for a 50,000 kW biomass
power plant (FIT-approved facility)

Biomass Power Plant

TAKUMA CSR Report 201820

The Takuma Group Network■ Takumaʼs business ofﬁces(as of June 27, 2018)

Takumaʼs business ofﬁces

Overseas group companies

Group companies in Japan

1 Head Ofﬁce

6 Chubu Branch

2 Osaka Ofﬁce

7 Kyushu Branch

2-2-33 Kinrakuji-cho, Amagasaki, Hyogo
660-0806, Japan
TEL +81-6-6483-2609 FAX +81-6-6483-2751
Hanahara 6th Bldg., 6-8-31 Nishinakajima,
Yodogawa-ku, Osaka 532-0011, Japan
TEL +81-6-4805-7600 FAX +81-6-4805-7601

3 Tokyo Branch

Nomura Higashi-nihonbashi Bldg., 1-1-7
Higashinihonbashi, Chuo-ku, Tokyo 103-0004,
Japan
TEL +81-3-5822-7800 FAX +81-3-5822-7888

4 Hokkaido Branch

5 Tohoku Branch

NMF Sendai Aoba-dori Bldg., 2-1-2 Ichibancho,
Aoba-ku, Sendai, Miyagi 980-0811, Japan
TEL +81-22-222-3042 FAX +81-22-225-6759

1 Nippon Thermoener Co., Ltd.

Manufacture and sale of a wide range of boilers andrelated equipment
Shirokanedai Bldg., 3-2-10 Shirokanedai, Minato-ku,
Tokyo 108-0071, Japan
TEL +81-3-6408-8251 FAX +81-3-6408-8278
http://www.n-thermo.co.jp

2 Takuma Technos Co., Ltd.

Maintenance, management and operation of waste treatment
facilities, water treatment facilities and other facilities, as wellas the design, installation and management of various typesof boilers, environmental equipment and other equipment
10th Chuo Bldg., 1-5-6 Nihonbashi-honcho, Chuo-ku, Tokyo
103-0023, Japan
TEL +81-3-3231-2911 FAX +81-3-3231-2917
http://www.takumatechnos.co.jp

3 Hokkaido Sanitary Maintenance Co., Ltd.

Operation and maintenance of sewage treatment facilities
Daigo Bldg., 5-11, Ohdori Nishi, Chuo-ku, Sapporo,
Hokkaido 060-0042, Japan
TEL +81-11-221-8398 FAX +81-11-221-8542

25

2
9

8
14

13

4 3 4

4 Takuma Technos Hokkaido Co., Ltd.

5

1

26 16

Design, construction and superintendence of
air-conditioning equipment, feed-water/drainage
sanitation equipment, and electrical equipment
Nomura Higashi-nihonbashi Bldg., 1-1-7
Higashinihonbashi, Chuo-ku, Tokyo 103-0004, Japan
TEL +81-3-5825-0921 FAX +81-3-5825-1631
http://www.sunplant.co.jp

28

6 Takuma Engineering Co., Ltd.

Design of environmental equipment plants and energy plants
Takuma Bldg., 2-2-33 Kinrakuji-cho, Amagasaki,
Hyogo 660-0806, Japan
TEL +81-6-6487-4820 FAX +81-6-6487-4829
http://www.takuma-eng.co.jp

20

5
29

7 Takuma System Control Co., Ltd.

Design of electrical instrumentation equipment, including
environmental equipment plants and energy plants
Takuma Bldg., 2-2-33 Kinrakuji-cho, Amagasaki,
Hyogo 660-0806, Japan
TEL +81-6-6487-4830 FAX +81-6-6487-4839
http://www.takuma-sc.co.jp

7

19

6

Operation and maintenance of waste treatment facilities
Daigo Bldg., 5-11, Ohdori Nishi, Chuo-ku, Sapporo,
Hokkaido 060-0042, Japan
TEL +81-11-221-4128 FAX +81-11-221-1030

5 Sun Plant Co., Ltd.

15

21

3

12

9 10

22

27

1 6 7 11 18

8 Dan-Takuma Technologies Inc.

2

23

24

Manufacture and sale of clean equipment, cleaning
equipment, chemical ﬁlters, clean rooms, drying
equipment and thermal chambers
3-12-16 Iwadokita, Komae, Tokyo 201-0004, Japan
TEL +81-3-3488-1111 FAX +81-3-3488-1118
http://www.dan-net.com

9 Kyoritsu Setsubi Co., Ltd.

17

21

TAKUMA CSR Report 2018

Yakuin Business Garden, 1-1-1 Yakuin, Chuo-ku,
Fukuoka 810-0022, Japan
TEL +81-92-717-2828 FAX +81-92-717-2830

8 Okinawa BranchCommons Bldg., 1-11-12 Mashiki, Ginowan,
Okinawa 901-2224, Japan
TEL +81-98-898-6650 FAX +81-98-898-6657

9 Harima Factory

1 Taiden Environtech Co., Ltd.

Maintenance of waste treatment and other facilities
7F., No. 16, Lane 35, Jihu Rd., Neihu District, Taipei
114-92, Taiwan
TEL +886-2-2659-7137 FAX +886-2-2656-0584

2 Siam Takuma Co., Ltd.

Sale of energy and environment-related plants,
sales of parts for the same plants and after-sales
service
77/53 Sinn Sathorn Tower, 15th Floor,
Krungdhonburi Road, Klongtonsai, Klongsarn,
Bangkok 10600, Thailand
TEL +66-2438-5616 FAX +66-2440-0114

1-2-1 Shinhama, Arai-cho, Takasago, Hyogo
676-8540, Japan
TEL +81-79-443-6511 FAX +81-79-443-6599

10 Taipei Branch

7F., No.16, Lane 35, Jihu Rd., Neihu District, Taipei
114-92, Taiwan
TEL +886-2-8752-3838 FAX +886-2-2656-0584■ Group companies in Japan2

8

Daitokai Bldg., 3-22-8, Meieki, Nakamura-ku,
Nagoya, Aichi 450-0002, Japan
TEL +81-52-571-5211 FAX +81-52-581-3005

The Takuma
Group Network

Daigo Bldg., 5-11, Ohdori Nishi, Chuo-ku, Sapporo,
Hokkaido 060-0042, Japan
TEL +81-11-221-4106 FAX +81-11-241-0523

10 1■ Overseas group companies

Design, construction and superintendence of waste
treatment facilities, mechanical equipment of sewage
treatment facilities, and boiler plants for general industries
5-1-38 Yurigahara, Kita-ku, Sapporo, Hokkaido
002-8081, Japan
TEL +81-11-770-2811 FAX +81-11-770-2822

10 Kankyo Sol-Tech Co., Ltd.

Analyzing and measurement for environment-related issues,
including water quality, exhaust gas and soil pollution
1-2-1 Shinhama, Arai-cho, Takasago, Hyogo 676-0008, Japan
TEL +81-79-443-6508 FAX +81-79-443-6510
http://www.k-soltech.co.jp

11 Takuma Plant Service Co., Ltd.

20 Hokutan High Trust Co., Ltd.

Operation and maintenance management of amunicipal solid waste treatment facilities
943 Booka, Takeno-machi, Toyooka, Hyogo
669-6331, Japan
TEL +81-796-21-9111 FAX +81-796-21-9112
http://hokutan-ht.com

Maintenance of a wide variety of boilers andenvironmental facilities
2-2-27 Kinrakuji-cho, Amagasaki, Hyogo 660-0806, Japan
TEL +81-6-6488-8434 FAX +81-6-6488-0300
http://www.takuma-ps.com

21 Suwako High Trust Co., Ltd.

Municipal solid waste and industrial waste
treatment services
1 Takayanishitani, Sonobe-cho, Nantan, Kyoto 622-0032, Japan
TEL +81-771-68-3636 FAX +81-771-68-3639
http://www.c-rp.co.jp

22 Imabari High Trust Co., Ltd.

Facility upgrading, operation and maintenance ofmunicipal solid waste ﬁnal disposal sites
374-12 Higashino, Nagaizumi-cho, Suntou-gun,Shizuoka 411-0931, Japan
TEL +81-55-989-2268 FAX +81-55-987-9935
http://www.nagaizumi-ht.jp

23 Energy Mate Co., Ltd.

12 Campo Recycle Plaza Co., Ltd.

13 Nagaizumi High Trust Co., Ltd.

14 Fujisawa High Trust Co., Ltd.

Operation and maintenance management ofmunicipal solid waste treatment facilities
2168 Ishikawa, Fujisawa, Kanagawa 252-0815, Japan
TEL +81-466-45-5411 FAX +81-466-45-5454

15 Iwate-Kenpoku Clean Co., Ltd.

Municipal solid and industrial waste treatment services
48-34, Dai 20 Chiwari, Esashika, Kunohe-mura,
Kunohe-gun, Iwate 028-6505, Japan
TEL +81-195-42-4085 FAX +81-195-42-4550
http://www.iwate2cln.co.jp

16 Hitachinaka-Tokai High Trust Co., Ltd.

Operation and maintenance management of amunicipal solid waste treatment facilities
4769-14 Uchiyama, Okaya, Nagano 394-0055, Japan
TEL +81-266-78-1590 FAX +81-266-78-1591
http://www.suwako-ht.jp
Operation and maintenance management of amunicipal solid waste treatment facilities
394 Machiyakou, Imabari, Ehime 799-1514, Japan
TEL +81-898-35-5181 FAX +81-898-35-5182
http://bariclean.jp
Sale of cogeneration systems and systems for thegeneration equipment of the same and total service
for onsite energy systems for consumer use
Midosuji Daiwa Bldg., 3-6-8 Kyutaromachi,
Chuo-ku, Osaka 541-0056, Japan
TEL +81-6-6241-6200 FAX +81-6-6241-6210
http://www.energy-mate.co.jp

24 Kashihara High Trust Co., Ltd.

Operation and maintenance management of municipal
solid waste treatment facilities
1038-2 Kawanishi-cho, Kashihara, Nara 634-0826, Japan
TEL +81-744-26-6227 FAX +81-744-26-6228

25 Tochigi High Trust Co., Ltd.

Industrial waste treatment services
18-3 Kinugaoka, Moka, Tochigi 321-4367, Japan
TEL +81-285-83-3966 FAX +81-285-83-6500
http://www.t-hitrust.co.jp

Operation and maintenance management ofmunicipal solid waste treatment facilities
103-2 Shinkocho, Hitachinaka, Ibaraki 312-0005, Japan
TEL +81-29-265-5371 FAX +81-29-265-5372
http://hitachinaka-tokai-ht.com

26 Katsuta Co., Ltd.

Operation and maintenance management ofmunicipal solid waste treatment facilities
1-5 Kokatsu, Tachibana-cho, Anan, Tokushima779-1631, Japan
TEL +81-884-49-5823 FAX +81-884-49-5824
http://www.ecopark-anan.com

27 R.B.N. Co., Ltd.

17 Anan High Trust Co., Ltd.

18 Takuma Energy Co., Ltd.

Power retail business
Takuma Bldg., 2-2-33 Kinrakuji-cho, Amagasaki,
Hyogo 660-0806, Japan
TEL +81-6-6487-4870 FAX +81-6-6483-2794

19 Kurume High Trust Co., Ltd.

Operation and maintenance management of amunicipal solid waste treatment facilities
2225 Hacchojima, Miyanojin-machi, Kurume,
Fukuoka 839-0805, Japan
TEL +81-942-27-7490 FAX +81-942-27-7491
http://www.kurume-ht.com

Industrial waste and municipal solid waste
treatment services
1968-2 Koya, Hitachinaka, Ibaraki 312-0002, Japan
TEL +81-29-270-3711 FAX +81-29-270-3712
http://www.eco-katsuta.com
Municipal solid waste, including waste home
appliances and ofﬁce automation equipment, andindustrial waste treatment services
3059-20 Nakajima, Shikama-ku, Himeji, Hyogo
672-8035, Japan
TEL +81-79-243-1200 FAX +81-79-243-1202
http://rbn.jp

28 Ichihara New Energy Co., Ltd.

Industrial and municipal solid waste treatment services
733 Mandano, Ichihara, Chiba 290-0549, Japan
TEL +81-436-50-8300 FAX +81-436-50-8400
http://www.ichihara-new.com

29 Ecos Yonezawa Co., Ltd.

Final disposal of industrial waste
7028-1 Yanazawa, Yonezawa, Yamagata 992-0077, Japan
TEL +81-238-39-4050 FAX +81-238-39-4051
http://www.ecos-y.co.jp

TAKUMA CSR Report 201822

FeatureChildhood and youth

The King of Boilers
Tsunekichi Takuma and His Company
This year marks 80 years since Tsunekichi Takuma founded Takuma Boiler Manufacturing Co., Ltd.
The technological philosophy on the basis of which developed the ﬁrst boiler to be produced in Japanhas withstood the test of time, and it is being carried on by the company s engineers today.

Feature: "TheKing of Boilers"This feature takes advantage of this milestone year to introduce the roller-coaster life of the

Tsunekichi was born on February 8, 1872, in the village of Omakoto in the Tohaku districtof Tottori Prefecture (the present-day town of Hokuei in the Tohaku district). Skilled withhis hands and an avid student from his youngest days, Tsunekichi diligently studiedclassical Chinese under his father, who ran a small private school. He had an older brothernamed Manzo and an older sister named Yone. Having heard about steam-powered
vehicles and other urban wonders from his brother Manzo, who was an elementary school
teacher in Kyoto, the young Tsunekichi resolved to travel to the city.
After convincing his father and brother to let him go to Kyoto at age 14, Tsunekichi
initially worked for a physician, but he changed his mind and decided to become amerchant around age 20. He entered the lumber trade at age 31 in 1903, but the
Russo-Japanese War broke out in 1904, precipitating a rapid fall in the price of lumber andforcing him out of business. Already responsible for his wife and children, Tsunekichi tried
to reestablish himself in Korea with the aid of a friend when the war ended, but sad news
about the death of his wife at the time, Kameko, awaited him when he returned to Japanafter planning his business in Korea.

company s founder in order to make his story more familiar to readers.

Meeting his wife Kumako and encountering a boiler invention
The heartbroken Tsunekichi remarried Kumako
Harimura, who found herself in the same circumstances
as Tsunekichi, when he was 35.
Kumako supported Tsunekichiʼs efforts at invention
despite the householdʼs limited means; without her help,
the Takuma boiler would probably never have come to
be. The supportive wife is shown in proﬁle on a bust of
Tsunekichi that was made after he achieved success.
Yet another encounter awaited Tsunekichi after heremarried Kumako and relaunched his lumber tradingbusiness: Yasaburo Okamoto, who would later push him
down the path toward inventing a boiler.
Yasaburo was working to invent a boiler as a source ofpower to operate lumbermill machinery. Tsunekichi wasenthralled when he heard about the proposed invention
and invested in the Okamoto boiler. The project,launched around the time that Tsunekichi was 38 years
old, failed, leaving Tsunekichi and his wife with anenormous debt.

“The King of Boilers”: Tsunekichi Takuma
Tsunekichi Takuma, the founder of Takuma, was also an
inventor who invented the Takuma boiler, the ﬁrst watertube-type boiler to be produced entirely in Japan. However,Tsunekichi didnʼt embark on his quest to invent the boiler
until around the time he turned 40. Before this layperson,
who didnʼt even understand the terminology in a
specialized text on boilers, would become known as “theking of boilers,” before he would earn a reputation as one ofJapanʼs 10 great inventors of the Meiji and Taisho periods,
before he would found Takuma, he would grapple with aseries of difﬁculties that he was only able to overcome
through a long process of trial and error.

23

TAKUMA CSR Report 2018

Tsunekichi and his wife, Kumako

A bust of Tsunekichi withhis wife Kumako shownin proﬁle on the side

“If you put your mind to it, you can do it”: A eureka moment on the Genkai Sea
Drowning in debt from his failed business and with his family on the verge of breaking up, Tsunekichi boarded a ship with
the intention of turning once more to his Korean friend. One night on the ship as it crossed the Genkai Sea, Tsunekichi
became overcome by the distressed condition in which he and his family found themselves and contemplated throwing
himself into the sea.
Just before doing so, he had an experience that he would later describe as a “revelation from heaven.” In that moment, he
had an epiphany concerning the driving force behind the love of invention that he had cultivated throughout his life, realizingthat communicating the fruits of his work to the world and contributing to human progress were the heaven-sent mission ofhumanity and simultaneously the greatest joy that one could have, and resolving that if he put his mind to the task, he would
be successful.
Following his return to Japan, Tsunekichi repaid the loan from his failed business, and in 1912, he overcame the oppositionof those around him to start work on inventing his own boiler at the age of 40.

TAKUMA CSR Report 201824

“Boilers are living things”: Tsunekichiʼs boiler research

Tsunekichiʼs second challenge: From the Takuma boiler to the Tsunekichi boiler
Praise for the Takuma boiler grew, and production value approached 10 million yen, unadjusted for inﬂation. Buoyed bybrisk sales of his ﬁrst invention, Tsunekichi founded Tsunekichi Takuma Institute at his home in June 1936 and set out
inventing a new boiler. He dubbed the premium, compact boiler that resulted from his effort the Tsunekichi boiler. Easy tooperate, faster-starting than other boilers of the time with the same steam volume, and capable of running on about 30% lessfuel, the new design earned broad praise. Faced with the need to put in place a system capable of producing the boiler,
Tsunekichi incorporated his institute as a joint-stock company in July 1937, creating the Takuma Institute Co., Ltd. The
groundwork for the boiler-inventing business that Tsunekichi had long idealized had ﬁnally been laid.
As a result of the Marco Polo Bridge Incident on July 7, 1937, Japan abruptly found itself embroiled in the Sino-Japanese
War. As the war expanded, the Takuma Institute, which had been founded to carry out research into boilers, became caught up
in wartime production.

25

Feature: "TheKing of Boilers"

Tsunekichi, who knew nothing about boilers, bought several specialized books on the subject and set about developing his
own design while drawing inspiration from designs that were famous overseas at the time, including Cornish boilers andBabcock boilers. Despite a sustained effort that was supported by Kumako, the process did not go as he had hoped.
But he didnʼt give up, instead retreating from prying eyes to Mt. Takatori in the city of Kobe in Hyogo Prefecture, where he
immersed himself in his research and pursued a series of hunches: that boilers were living things; that they used heat from coal toconvert water into steam; that the circulation of boiler water in order to create steam from water was instrumental to the life of theboiler; that the movement of boiler water was analogous to the circulation of blood in the human body; and that boilers to date
did not adequately provide the functionality of the human heart, because the part corresponding to the arteries was incomplete.
Tsunekichi tried to conduct experiments involving the circulation of boiler water, but he was unable to build a model due tothe difﬁculty of obtaining funding. Instead, he carried out experiments using a model he had made out of implements hefound in his kitchen, including pots, glass sake utensils, and a device used to toast sesame seeds. In the course of doing so, heestablished a theory of boiler water circulation. The water collector, which was the heart of the boiler, and the downcomer
tubes, which were its arteries, together comprised the distinguishing characteristics of the Takuma boiler and were inventions
that were unknown in the water tube-type boilers of the day. In this way, Tsunekichi patented the Takuma boiler in 1913 andset out to found a company so that he could supply his invention to the world.

A band performs to accompany the ﬁrst shipmentof the Tsunekichi Model A boiler.

Schematic drawing of the Tsunekichi Model A boiler

The history of Tsunekichi and Takuma

Establishment of Takuma Boiler Manufacturing Co., Ltd., and adoption of the company motto

In April 1914, Tsunekichi exhibited his Takuma boiler at the 2nd Invention
Expo in Osaka, where he won the gold prize. It was the ﬁrst time for the
exceptional nature of the invention to be recognized in a public setting,prompting inquiries from all quarters as the inventor began work tocommercialize his product.
Eager to capitalize on the newfound opportunity, Tsunekichi enlisted the
support of Dr. Masao Kamo of Tokyo Imperial University and signed a sales
contract with Takada Shokai that November, prompting sales to growsmoothly. The following year, he established Takuma Boiler Company toprotect his patent rights.
The superiority of the Takuma boiler was proven in a capacity test carried out
by Kyoto Imperial University in 1919, pitting the design against the Babcock
sectional boiler, a design from the Babcock & Wilcox Company in England that
had earned worldwide renown. Results showed that the Takuma design bested
its British counterpart in terms of both steam volume and thermal efﬁciency.
The company began selling Takuma boilers in Manchuria in 1924 and in
Taiwan in 1926. At the time, sugar reﬁneries in Taiwan were looking for ahigh-efﬁciency boiler that burned bagasse (a ﬁbrous product left over after
sugarcane is pressed). When performance tests carried out by sugar reﬁneries
in Taiwan and other sugar plants made it clear that Takuma boilers excelled at
this task, the company experienced a surge of inquiries. Between 1930 and
1932, it delivered dozens of boilers to the market.
In November 1928, Tsunekichi was awarded the Fifth Class Order of the
Sacred Treasure by Emperor Hirohito in recognition of his contribution to newindustry. In addition, he was named as one of the Meiji and Taisho periodsʼ 10
greatest Japanese inventors in December 1930. He was 58 years old at the time.

Takuma Boiler Manufacturing Co., Ltd., the forerunner of todayʼs Takuma, was founded in the city of Amagasaki in Hyogo
Prefecture in June 1938 to boost the instituteʼs production capacity. The new company absorbed the Takuma Institute that
December. Tsunekichi served as the companyʼs ﬁrst president and formulated its motto of “Service to the nation through boiler
manufacturing.” Founded on the idea of contributing to society and the environment through the manufacture of boilers, thephilosophy captures the dedication of Tsunekichi, who poured his heart and soul into inventing the ﬁrst water tube-type boiler
to be produced in Japan, and it continues to serve as the foundation of Takuma and the Takuma Groupʼs management
philosophy today.
Takuma Steam Power Construction Co., Ltd., was founded in March 1939 to install and operate boilers, and the companyʼs
Tokyo Ofﬁce was spun off in September 1941 to form Tokyo Steam Power Construction Co., Ltd., (todayʼs SUNPLANT Co.,
Ltd.). The result was a three-part business that added installation to boiler research and manufacturing.

TAKUMA CSR Report 2018

A share of Takuma Boiler Manufacturing Co., Ltd.,
stock at the time the company was founded

The company emblem, whose design
incorporates Takumaʼs three-part business

TAKUMA CSR Report 201826

Tsunekichiʼs later years

As they manufacture boilers to deliver to Takumaʼs plant under a rigorous quality control system, veteran employees andyoung workers at the Harima Plant work together to master and pass on technologies in accordance with the same philosophy
that has guided us since our founding.

A sesame-toasting device used in boiler water circulation
experiments along with a corresponding sketch

Order of the Sacred Treasure, Gold Rays
with Rosette (junior ﬁfth rank)

Passing on boiler manufacturing technology and dedication at the Harima Plant

Feature: "TheKing of Boilers"

Tsunekichi worked hard as the president of Takuma Boiler Manufacturing Co., Ltd., until he resigned from the position in
May 1941 at the age of 69 due in part to his advancing age. He gave the post to Yoshisaburo Fujita, with whom he had shared
many joys and sorrows since before the founding of the company, and became chairman, in which capacity he watched overthe company during the chaos of World War II and its aftermath. He continued in that role after the death of his wife Kumako
at age 82 in March 1947 until passing away at age 81 on December 22, 1953.
On January 14, 1954, one month after his death, Tsunekichi was posthumously awarded the Order of the Sacred Treasure,Gold Rays with Rosette, for his contributions to the development of Japanese industry through his boiler business. The
company still has the award itself along with the sesame seed toaster and sketches he used in his experiments with boiler
water circulation and a coat worn by his wife, treasured artifacts of its history.

●

Sources

Autobiography of Tsunekichi Takuma: From His Personal Background to the Takuma Boiler (2005), Takuma Co., Ltd.
Fifty Years of Takuma (1989), Takuma Co., Ltd.
Great Inventors of Japan (1943), Michio Matsudaira, Kinnohoshisha
Life of an Inventor: The King of Boilers, Tsunekichi Takuma (1940), Tadashi Kawamura, Fujokaisha■ Afterword
Ryo Inaba, General Affairs Department, Corporate Services Division

The Harima Plant at the time of its construction (left), and the same plant today (right)

Tsunekichi set out on his path to invention as a layperson who knew almost nothing about boilers and went on to invent the
Takuma boiler as well as the Tsunekichi boiler. Boiler manufacturing technology has placed an essential role in facilitating thedevelopment of these boilers down to the present day by making it possible to manufacture the boilers invented and designed
by Tsunekichi without sacriﬁcing their quality and to deliver them to customers via a rigorous quality control system. No
matter how exceptional Tsunekichiʼs designs, it would not be possible to earn customersʼ trust without the ability to actuallybuild them, and the inventorʼs own experience led him to pay close attention to this aspect of the companyʼs operations.
The Harima Plant, which was established in December 1942 by Tsunekichi to implement his ideal of “Service to the nation
through boiler manufacturing,” continues to operate today as one of Takumaʼs boiler manufacturing facilities. Many of theboiler manufacturing technologies that comprise the companyʼs core competence ﬁnd expression in the skills of the plantʼsengineers, and we consider passing on and further developing those skills to be essential priorities.

27

TAKUMA CSR Report 2018

Although the word inventor calls to mind an image of someone who embraces the mission of creation
at a young age and then ﬁnds success, Tsunekichi Takuma set out to invent the boiler around the time
he turned 40, when he was a lumber merchant. The boiler and incineration technologies into which
this unusual person poured his heart and soul live on as core technologies of the company today. I
hope that this feature has given you a better understanding of the source of Tsunekichi Takumaʼspassion for boilers as the “King of Boilers.”

Chiyo Inoue, Manager, General Affairs Department, Corporate Services Division
What kind of person was Tsunekichi Takuma? He was full of curiosity and the will to study as a child,and he struggled with a desire to accomplish something with his life as a youth. A reading of his
autobiography reveals an energetic journey over the course of which he developed a strong desire tocontrol nature while experiencing numerous challenges and failures and making the impossible,
possible. In the episodes of his life that were not include in the autobiography you can ﬁnd the same
sort of human drama that characterizes life during other eras, including times of happiness andsadness through friendship, love, betrayal, trust, disappointment, and hope. It turns out that the
portrait of the old man with which employees are familiar points to a passionate spirit who lived 100
years ago.

TAKUMA CSR Report 201828

Introduction to Takumaʼs Businesses

1. Municipal Solid Waste Treatment Plant Business(Related SDGs)

Completion and acceptanceSeeing municipal solid waste treatment plants through to completion

Order receipt

32

Bidding

Planning and cost estimation

1
During the sales stage, we precisely
assess the needs of the local governmentthat is our customer. Working with our
in-house planning team, we develop a
proposal that will satisfy the customer
and work to earn an order.

During the design stage, we develop adetailed design through a series ofmeetings with the customer based on thebasic plan. Specialists in technologies suchas combustion, exhaust gas treatment, andelectric instrumentation systems work
together to create a speciﬁc solution
for the customer.
ectroj
ration p
e
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o
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ce an
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reatme
T
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s
a
ew W
abari N
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sign
e
o worke
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e
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ploy
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●Imp

4

Construction and commissioning

Procurement and manufacturing
Waste treatment plants consist ofmultiple pieces of equipment. During the
procurement and manufacturing stage,
we manufacture this equipment at ourHarima Plant under a rigorous quality
control system while carefully choosing
the optimal manufacturers to satisfy the
projectʼs cost and lead timerequirements.

During the construction and commissioning
stage, we manage the construction process,from civil and construction work to theinstallation and commissioning of plant
equipment. This management process,which addresses safety, quality, construction
process, and cost management, culminatesin the delivery of the completed facility to
the customer.

issioning

5

Yasushi Kamei
Operation & Maintenance Services
Department 2
Environmental Plant Division

Sales

Kenji Fujita
Civil & Architectural Engineering Department
Construction Center

Takashi Kubo
Plant Sales Department 2
Environmental Plant Division

As a salesperson, I visited the site numerous times toensure that the customer would choose to entrust the
project to Takuma. The process leading up to ourreceipt of the order was a truly challenging one.
This effort had numerous components, including
precisely assessing the customerʼs needs; proposing a
project that would satisfy those needs; building
relationships of trust with the customer, local residents,and others; coordinating and negotiating with in-houseteams and outside entities; negotiating with othercompanies; and dealing with various problems as theyarose. Our hard work was rewarded and turned into
immeasurable pleasure when the customer made thefollowing response on a customer satisfaction
questionnaire after the project was completed andhanded over: “I believe that weʼve just seen one of thebest facilities of its kind in Japan completed.”

29

TAKUMA CSR Report 2018

Nobuo Akae
Environmental Engineering Department 3
Engineering Center

My involvement with this project began as we sought to work out thesystem that Takuma was going to propose after we received the order forthe project while listening carefully to the customerʼs requests. As an
example, we ended up changing equipment that uses waste heat fromincinerating waste at the facility from a hot water supply system to anelectricity supply system after a series of discussions with involved
agencies and other stakeholders so that the plant could supply theelectricity it generates to nearby facilities.
After the basic design was ﬁnalized, we were able to design a facility thatearned the customerʼs approval by explaining information including thecapacity, operating methods, and maintenance methods for all machineryand participating in numerous meetings.
The process leading up to the transfer of the facility to the customer
brought one challenge after another, and Iʼll strive to take advantage of
those experiences so that we can continue to deliver facilities that makecustomers happy in the future.

6

ervicesales sAfter-

mn and com
o
i
t
c
u
r
t
s
n
Co

3

1

We carry out periodic inspections andmaintenance after the plant has been
handed over to the customer in order toensure it will operate safely over the longterm. In recent years, an increasing
number of customers are turning to
Takuma for turnkey solutions that extend
from the construction of new facilities totheir operation.

Introduction to
Takumaʼs
Businesses

Sales

During the planning and cost estimation
stage, we plan plant systems (including
equipment ﬂow, speciﬁcations, and layout)
to satisfy the customerʼs needs. We thenfocus our technological capabilities on thoseneeds and offer the proposal along with an
optimally priced quotation.

DesignAfter-sales service

5

Takuma is helping protect the global environment through business activities consisting of an integrated approach that
extends from the design, manufacture, and procurement of equipment and systems to plant construction. This section
introduces the process that goes into bringing a municipal solid waste treatment plant online in one of Takumaʼs core businesses.

6

Expert staff members manage operations at each construction site ona daily basis to ensure that the facility will be completed as outlined indesign drawings and in a way that satisﬁes the customer.
As many as more than 500 workers worked on this plantʼs site everyday. Daily construction management included safety patrols to ensurethat workers were doing their jobs safely and a variety of inspections toverify that the plant was being built in accordance with drawings.
We also actively promoted exchanges with local residents to ensure
they understood the construction process and to give them peace ofmind, for example by inviting them to tour the site, by cleaning up thearea around the site, and by participating in community events.
I realized that all the hard work was worth it when the customersʼ
representatives expressed their gratitude at the completion ceremony
after construction was ﬁnished.

When operating a plant, we provide optimal
maintenance and management services that utilize
POCSYS, a proprietary system designed to provide
comprehensive support for plant operation,
maintenance, and management so the plant can live
up to its concept of providing safe and stable waste
treatment.
Going forward, we will go beyond plant operation,
maintenance, and management as we work to allow
the facility to bring local residents together and toplay a disaster prevention role by offering tours,
hands-on events, and disaster prevention training
together with local residents. In this way, the facility
will protect the community and earn a place inresidentsʼ hearts while simultaneously raising
environmental awareness, facilitating hands-on
learning, and disseminating information.

TAKUMA CSR Report 201830

Introduction to Takumaʼs Businesses

1. Municipal Solid Waste Treatment Plant Business
Main Recent Projects
The following are the main plants supplied by Takuma during FY2017.

●New construction■ Imabari City Waste Management Center■ Uwajima Public Association Environment Center

Introduction to
Takumaʼs
Businesses●

Project nameRegional New Waste Treatment
Facility Construction Project(tentative)●

Capacity
Incineration facility: 120 tons per day(60 tons per day 2 units)
Recycling facility: 20 tons per 5 hours
Power output: 2,500 kW●

Location
Ehime Prefecture●

Project nameImabari New Waste Treatment Facility
Maintenance and Operation Project●

Capacity
Incineration facility: 174 tons per day(87 tons per day 2 units)
Recycling facility: 41 tons per 5 hours
Power output: 3,800 kW●

Location
Ehime Prefecture●Primary equipment improvements■ Hanno City Clean Center●

31

Project name
Hanno Waste Treatment Facility
Construction Project

TAKUMA CSR Report 2018●

Capacity
Incineration facility: 80 tons per day(40 tons per day 2 units)
Recycling facility: 11.8 tons per 5 hours
Power output: 830 kW■ Chiyoda Clean Center●

Location
Saitama Prefecture●

Project nameOkitama Administrative Association
Chiyoda Clean Center Incineration Facility
Primary Equipment Improvement Project●

Capacity
Incineration facility: 255 tons per day(85 tons per day 3 units)
Power output: 2,150 kW●

Location
Yamagata Prefecture

TAKUMA CSR Report 201832

Introduction to Takumaʼs Businesses

2. Energy Plant Business(Related SDGs)

Completion and acceptanceSeeing energy plants through to completion

4

Order receipt

Planning and cost estimation

1
During the sales stage, we gather
information about the business being
planned by the customer, conduct a
series of discussions and studies withinternal departments, develop a
proposal that precisely meets thecustomerʼs needs, and work to earn anorder.

s fromression
p
m
I
●
1

ee
employDuring the design stage, specialists
from various ﬁelds, including
combustion technology, exhaust gas
treatment, and electrical control
systems, work together to develop adetailed plan.

FYduring
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2017)

The procurement and manufacturing
stage consists of manufacturing
equipment and systems whose
speciﬁcations have been ﬁnalized at ourHarima Plant under a rigorous quality
control system and of choosing andprocuring equipment from optimal
venders in Japan and overseas to satisfy
speciﬁcations and quality requirements.

During the construction and commissioning
stage, we work to ensure construction
proceeds smoothly while carefully managing
safety, quality, and construction processes.
Once the plant has been completed, we carryout tests and inspections to assess whether
equipment and systems are operating as
designed and to speciﬁcations, and then weverify the plantʼs performance.

issioning5mn and com
o
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t
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Co

Fumitoshi Takahashi
Section 2,
Plant Service Department 2
Energy Plant Division

3

Sales

Naoki Hara
Section 1,
Construction Department (Osaka)
Construction Center

Kyohei Bunya
Section 1,
Plant Sales Department 2
Energy Plant Division
In this project, we proposed a plant capable ofburning and generating electricity from a variety offuels harvested from Japanʼs forested mountains in astable manner, reﬂecting our desire to achieve thecustomerʼs concept of using all the trees frommountains in order to regenerate and develop thecountryʼs forested mountains. I met with the customer
and various governmental ofﬁces, visited the planned
construction site frequently, checked on the status of
the infrastructure that would be needed for the power
plant to operate, and worked to ﬁnalize the overallplan. Going forward, I will offer assistance so that theplant we proposed can operate smoothly and thereby
contribute to the customerʼs business and to the local
community.

33

TAKUMA CSR Report 2018

Hiroyuki Hikita
Section 2,
Energy Engineering Department 2
Project Center
We reﬁne each plantʼs plan through repeated meetings with our sales
team and with the customer. While listening to the customerʼs wishes,
we offer a proposal that incorporates our expertise and work closely withthe sales team to earn an order. Once weʼve received that order, we
proceed with the plant design process while enlisting the cooperation of
the customer, public agencies, equipment manufacturers, and others.
The completed design drawings are handed off to our construction team,and once construction is completed, the engineering staff works with thecommissioning team to carry out inspections, offer instruction on plant
operation, and perform related tasks. Seeing the customerʼs personnel
working at the operating plant following its completion always gives me
a strong sense of how weʼre contributing to the customerʼs business.

6

ervicesales sAfter-

Introduction to
Takumaʼs
Businesses

Sales

During the planning and costestimation stage, we plan a plantsystem (ﬂow, layout, equipment
speciﬁcations, etc.) that will satisfy
the customerʼs needs and create acompetitive proposal.

DesignOnce the plant has been handed overto the customer, we carry out periodic
inspections and maintenance toprevent problems and ensure that theplant will be able to operate in a safe
and stable manner.

Construction and commissioning

Procurement and manufacturing3
2

After-sales service

5

This section introduces the process that goes into bringing an energy plant online in one of Takumaʼs core businesses.

6

Although the plant has only been operational for ashort time, we as a maintenance team will plan
periodic inspections and maintenance and carry themout safely so that the facility can operate in a stablemanner over the long term.
Weʼll also help increase the customerʼs proﬁtability
by maintaining a high level of performance withfunctional improvements and proposals for preventive
maintenance measures and other enhancements thattake advantage of our many years of experience andby eliminating unplanned stoppages.

I was involved with this wood chip biomass-fueled power plantinstallation project, which is Takumaʼs ﬁrst 2 MW-class power plant, as asite manager from the construction planning stage through toconstruction and completion of the facility. We worked especially hard to
stick to the schedule, ﬁrst, due to the projectʼs short six-month timeline,
which included four months for construction and two months forcommissioning, and second, because it didnʼt differ from a large power
plant in terms of the number of pieces of equipment, even though it was
only a 2 MW-class facility. Thanks to the cooperation of the customer
and other involved parties, we were able to complete the project ontime. I hope the plant will be able to promote local employment andhelp revitalize the forestry industry by using unused lumber.

TAKUMA CSR Report 201834

Introduction to Takumaʼs Businesses

2. Energy Plant Business
Main Recent Projects
The following are the main plants supplied by Takuma during FY2017.

●Energy plants●

Project name

■ SGET Green Power Sanjo Godo Kaisha●●

Capacity
Fuel: Wood fuelSteam conditions (normal operation):
42 tons per hour 6.0 MPaG 460 C
Power output: 9,850 kW
Location
Hiroshima Prefecture■ Pultec Energy Co., Ltd.
●

●

●

35

Project name
No. 5 Biomass Power Generator Installation Project
Capacity
Fuel: Wood fuel, PKS
Steam conditions (normal operation):
85 tons per hour 6.0 MPaG 480 C
Power output: 22,100 kW
Location
Hyogo Prefecture

TAKUMA CSR Report 2018●

Biomass Power Plant Construction Project

Chugoku Mokuzai Biomass-fueled Power Plant (Head Ofﬁce)
Construction Project●

Project name

■ Biomass Power Technologies Inc.

●●

Capacity
Fuel: Wood fuelSteam conditions (normal operation):
28 tons per hour 6.0 MPaG 425 C
Power output: 6,250 kW
Location
Niigata Prefecture■ DS Green Power Generation Yonezawa LLC.
●●●

Project name
Biomass Power Plant Construction Project
Capacity
Fuel: Wood fuelSteam conditions (normal operation):
28 tons per hour 6.0 MPaG 425 C
Power output: 6,250 kW
Location
Yamagata Prefecture

Project name
Biomass Power Technologies Inc. Matsusaka
Woody Biomass Power Plant Installation Project■ Shin nihon kaihatsu Co., Ltd.
●

No. 5 Incinerator Construction Project●●●

Capacity
Fuel: Wood fuelSteam conditions (normal operation):
11.4 tons per hour 4.2 MPaG 405 C
Power output: 1,990 kW

●

●

●

Capacity
Treated waste type: Industrial waste
Incineration capacity: 93.6 tons per day
Location
Hyogo Prefecture

Location
Mie Prefecture■ Ehime Forest Generation, LLC●

Project name

Introduction to
Takumaʼs
Businesses■ Chugoku Mokuzai Co., Ltd. Head Ofﬁce Plant●Industrial waste treatment plants

Project name
Matsuyama Biomass Power Plant Construction Project
Capacity
Fuel: Wood fuel, PKS
Steam conditions (normal operation):48.5 tons per hour 6.0 MPaG 480 C
Power output: 12,500 kW
Location
Ehime Prefecture■ Kurihalant Co., Ltd.
●●●

Project name
Daigo Biomass Power Plant Construction Project
Capacity
Fuel: Wood fuelSteam conditions (normal operation):
11.4 tons per hour 4.2 MPaG 405 C
Power output: 1,990 kW
Location
Ibaraki Prefecture

TAKUMA CSR Report 201836

Introduction to Takumaʼs Businesses

3. Water Treatment Plant Business(Related SDGs)

More than 50 years have passed since Takuma entered the water treatment business. To date, we have helped improve thewater environment by building water treatment facilities. Recently, the industry has been called upon not only to improve thewater environment, but to reduce the amount of power that treatment equipment consumes and to create energy from sludge.
Energy-saving and energy-creating products play key roles in the industry, particularly at sewage treatment plants, and weremain committed to helping realize sustainable sewage systems.

Main Recent Projects The following are the main facilities supplied by Takuma during FY2017.

●

Reaction tank

Initial setting pond
SewageintakeFinal settling pond

Sand ﬁlter

Pre-processing
equipment

Discharge●
Anaerobic tank Anoxic tank

Crude sludge

Bio Blade Mix

Anoxic tank Aerobic tank
Aeration panel
Aerobic tank

Disinfection
tank

Excess sludge

Drawn-off sludge

Dehydrated liquid treatment

Digester tanks

Sludge treatment●

Incinerator

Project name
Tarumi Sewage Treatment Plant Sand Filter
Machinery and Equipment Project(Sand Filter Machinery and Equipment Renovation Project)
Capacity
Treatment volume: 7,992 m3 per day
Treatment method: Upﬂow moving-bed ﬁltration(high-speed type)Speciﬁcations:
M40 1 unit 3 basins
Location
Hyogo Prefecture
Introduction to
Takumaʼs
Businesses

Generator

Return water

Reaction tank facility

Saving energy【Principal equipment】
Aeration systems
Low power agitator(Bio Blade Mix)

Rapid ﬁltration facility■ Homare Sewage Relay Pumping Station

Saving energy●【Principal equipment】
Upﬂow moving-bed ﬁltration(Uniﬂow Sand Filter)●●

Auxiliary
blade
Primary
blade

Saving energy【Principal equipment】
Rotating drum-type concentrator
Cleaning
nozzleSludgetransportspiralConcentrated
sludgeDrum screen

CapacityType:

Back-raked continuous
automatic screen
Speciﬁcations: 800 (W) 1,300 (D) mm

Hole

Sludge treatment facility

Project name
Homare Sewage Relay Pump Station Screening
Equipment Renovation Project(Automatic Screen Renovation Project)

Incoming
sludgeSludge-fueled power generation facility Saving energy Creating energy【Principal equipment】
Step grate stoker furnace
sewage sludge power
generation system(Step grate stoker furnace andinnovative step grate stoker
furnace)

Location
Hyogo Prefecture■ Kita-Tama No.2 Water Reclamation Center
Generator
Sludge●Waste heatboilerDehydrated
liquidStep grate
Drying gratestoker furnace
Combustion
grate
Burn-out
grate

Incineration ash●●

Project nameKita-Tama No.2 Water Reclamation Center Sludge
Concentration Equipment Reconstruction Project(Sludge Concentrator Delivery)
CapacityType:
Rotating drumSpeciﬁcations: 50 m3 per hour
Location
Tokyo Prefecture

Combustion air fan

37

TAKUMA CSR Report 2018

TAKUMA CSR Report 201838

Introduction to Takumaʼs Businesses

4. Activities of Our Overseas Business(Related SDGs)

Overseas Energy from Waste plant business

The biomass-fueled power generation boiler business in Southeast Asia is an essential part of any discussion of Takumaʼshistory. We have delivered more than 370 biomass boilers to customers overseas, and we have an especially extensive trackrecord since 1959 of delivering boilers fueled by bagasse (ﬁber remaining after sugarcane is crushed) in Thailand, where we havea local subsidiary. Takuma takes pride in having supported the Thai sugar industry for many years.
As the feed-in tariff program for renewable energy becomes increasingly well established in various industries, a growing
number of customers in Thailand are looking beyond simply gaining a source of power for plant operation and instead opting toconstruct boilers with the goal of using 10 MPa・520 C classboilers that operate at comparatively high temperature andhigh pressure levels to actively generate electricity for
resale to boost their income. In this way, demand for thistype of boiler facility is expected to continue to grow.
Under these conditions, we look forward to helping
supply environmentally friendly power from biomass,
particularly in Southeast Asia, by accommodating demand
not only in Thailand, but also in neighboring countries such
as Indonesia and Vietnam with reliable technology andﬁne-grained customer service based on our extensive
experience in the ﬁeld.
Sugarcane deliveries

Waste processing problems have been manifesting themselves in countries around the world recently due to the effects oftrends such as rapid urbanization, and there have been reports of various adverse effects of burying waste as-is on living
conditions, including soil pollution and ﬁres, especially in developing nations. Such countries are pursuing initiatives toresolve waste treatment issues, and demand for Energy from Waste plants has been growing with each passing year, seemingly
in proportion to the volume of waste being disposed of. Growth in construction of large-scale plants nonetheless remains
gradual. One cause of this mismatch between demand and construction is likely to be inadequacies in terms of programs,
ﬁnancing, and technologies as expectations concerning renewable energy combine with robust requirements with regard tosafety and environmental friendliness.
Takuma has deep experience and an extensive track record that together make it a market share leader in waste incinerationand processing equipment in Japan. The photograph below depicts a plant that we delivered to Lakeside Energy from Waste
Limited in the UK, one of a series of nine facilities we have delivered in various countries and regions, including China and theUK. Our Lakeside Plant in the UK and our Gaoantun Plant in Beijing have earned a high level of praise and trust from theirrespective customers, for example due to the facilities having achieved continuous operation for more than 8,000 hours a year.
We are conﬁdent that taking advantage of our extensive experience in the ﬁeld, working closely with stakeholders as weshare detailed information, and actively cooperating in order to solve waste treatment-related issues will allow us to better
deliver plants that operate in a safe and stable manner to bring peace of mind to the residents of those countries and regions.
We look forward to contributing to initiatives designed to encourage the adoption of waste power plants in the future bydrawing on the technological expertise that is our strength and partnerships with local companies and other entities topropose solutions to local needs.

Introduction to
Takumaʼs
Businesses

Biomass-fueled power plant business in the Southeast Asian market

Main Recent Project●

Bagasse boiler delivered in FY2017
Steam capacity:
170 tons per hour
Steam pressure:
4.2 MPa
Steam temperature: 485 C
Number of boilers: 2

Message

Main Recent Project●MessageI oversaw my ﬁrst overseas project in FY2017. Overseas projects pose unique challenges because
they tend to have larger boilers than domestic Japanese projects and because all interactions withthe customer during the design process must be carried out in English. I was relieved that we wereable to deliver this boiler plant to the customer without any issues. Iʼm looking forward to taking
advantage of the experience Iʼve gained from this project so that I can embrace the challenges ofsimilar projects in the future.

39

Recently, I've noticed a big increase in awareness around waste issues, be it in developed ordeveloping countries. But already for over half-a-century, Takuma has been providing environmental
technology solutions by designing and building hundreds of household waste treatment facilities. As
one of the few foreigners in Takuma, I'm working to bring our technology and expertise overseas andwhile these projects are very difﬁcult and complicated, the resulting facilities undoubtedly help
towards creating a cleaner environment for ordinary people and their communities.

Yasuyuki Kawabe

Marc Nyhan

Section 3, Energy Engineering Department 2
Project Center

Sales Section, Environmental Plant Sales Department
International Operations Division

TAKUMA CSR Report 2018

Lakeside Energy from Waste Plant
Processing capacity: 1,370 tons per day(685 tons per day 2 units)
Steam capacity:
95 tons per hour per unit
Steam pressure:
4.5 MPa
Steam temperature: 400 C
Power output:
36,650 kW

TAKUMA CSR Report 201840

CSR Activities for the Future

CSR Activities for the Future
To become a sustainable company while fostering and expanding a broader range of CSR activities, we began compiling a
CSR activity roadmap in FY2011, which we have subsequently implemented over time. In FY2012, we chose a number of key
issues based on international guidelines on corporate sustainability reporting published by the Global Reporting Initiative(GRI) as well as ISO 26000, an international standard on organizational social responsibility. We are currently working toresolve those issues.

■ Activity report for FY2017
Each department discussed CSR issues in line with those key issues and developed its own action program. At the end of theyear, those departments then conducted self-evaluations to assess how well they had implemented their programs. (The tablebelow outlines some of the results of that process.)
ISO 26000
core subjects

Consumer issues

Labour practices
and human rights

Environment
Community
involvement anddevelopment

41

FY2017 action program

CSR issue

Department

Corporate governanceSupport for measures to increase the effectiveness of
the Board of Directors

Planning
Division

Conduct a questionnaire targeting directors in order to increase theeffectiveness of the Board of Directors. Evaluate, analyze, and report on the
results to facilitate useful discussions at Board of Directors meetings.

We conducted a questionnaire targeting directors and held interviews asnecessary, evaluated and analyzed the results, and reported them to the Boardof Directors.

Compliance

Cultivation of a robust corporate culture

CSR
Division

Share formulations of Takumaʼs basic approach, for example Management
Principles, the Takuma Group Ethics Charter, and the Takuma Group Code of
Conduct, and work to ensure that they permeate the organization and take hold.

We highlighted the Management Principles, the Takuma Group Ethics Charter, andthe Takuma Group Code of Conduct in the CSR Report and in internal education
and worked to ensure that they permeate the organization and take hold.

Improvement of risk management techniques

Engineering
Division

Create a risk management chart for each project, identify risks, and implement
preventive measures.

We were able to keep risks from manifesting themselves by applying risk
criteria horizontally to each project. In addition, there were no complaints that
posed a risk of reduced customer satisfaction.

Review of risk management items in the ﬁeld,
evaluation and improvement of current conditions,and implementation of risk management

Construction
Division

Enhance the information included in construction plans for each project byidentifying risks associated with work in the ﬁeld in order to eliminate
accidents and disasters at construction sites, carry out audits to determine
whether safety activities are being conducted according to plan, and work to
implement improvements.

Although we identiﬁed risks in our safety and health plans, incorporated that information
into construction plans, audited safety activities in accordance with those plans, andworked to make improvements, accidents still occurred, preventing us from achieving ourgoal. Going forward, we will augment guidance and education for workers with education
for site managers while working to improve the safety awareness of partner businesses.

Information disclosure (fulﬁllment of accountability
requirements and assurance of transparency)

Appropriate disclosure of technical information tooutside parties

Engineering
Division

Work internally to disclose technical information in a timely and appropriate manneras a way to facilitate the announcement of such information to outside audiences.

We encouraged departments to submit ideas for presentations at meetings ofmajor academic societies and discussed development topics that seemedsuitable for presentation with the responsible departments.

Employee training on social responsibility

Promotion of understanding (awareness) of social responsibility
and recommendations of how employees can take the initiative
to found their behavior on an awareness of social responsibility

Marketing
Division

Have employees discuss what it means to take the initiative to found their
behavior on an awareness of social responsibility internally in their own
department in order to facilitate such conduct.

We held internal readings of the Takuma Group Ethics Charter and the Takuma
Group Code of Conduct, worked to raise awareness of social responsibility, andsought to promote conduct that accords with ethical principles.

Stakeholder engagement

Development of trusting relationships with customers

Engineering
Division

Have employees responsible for projects being researched organize associatedﬁndings (customer evaluations) and report internally so that the entire
department can study and implement countermeasures.

We completed an internal report on the results from the previous ﬁscal year at the
beginning of the new ﬁscal year and presented it to the QM Committee. The
evaluation of the coordinators in our department exceeded the corresponding targets.

Implementation of measures to address risks
associated with maintenance safety and quality

Engineering
Division

Share examples of problems that have occurred in the past and use that
information to prevent similar issues from occurring in the future and to
facilitate a rapid response in the event that they do.

We shared examples of problems that have occurred in the past at internal
meetings so that similar issues could be dealt with in a conﬁdent manner.

Improvement of construction quality

Construction
Division

Work to improve construction quality by carrying out voluntary inspections inthe ﬁeld and strengthening checks of the status of construction managementin the ﬁeld by internal coordinators.

We worked to improve construction quality by carrying out voluntary inspections
at all sites in the ﬁeld and having internal coordinators carry out checks of thestatus of construction management in the ﬁeld at least once a month, with theresult that we had no orders of additional work due to defective construction.

Assurance of understanding of, and compliance with,
the Antimonopoly Act

Marketing
Division

Provide training on the provisions of the Antimonopoly Act as necessary andwork to ensure that employee conduct accords with the “Regulations
Concerning Management of the Pledge of Antimonopoly Act Compliance.”

We offered training on the provisions of the Antimonopoly Act and worked to ensure that
employees understand the “Regulations Concerning Management of the Pledge ofAntimonopoly Act Compliance” and the “Regulations on Managing Contact with
Competitorsʼ Sales Departments” and that they will comply with those and other regulations.

Observance of fair trade practices with customers

Marketing
Division

Provide training on topics such as preventing bribery and work to ensure anawareness of the importance of compliance permeates the department.

We offered training on topics such as preventing bribery and worked to ensure
an awareness of the importance of compliance permeates the department
while carrying out fair business practices with customers.

Observance of fair trade practices with suppliers andother business partners

Procurement
Division

Host regular training sessions on basic contracts to increase individual
employeesʼ awareness.

We held a workshop but did not verify employeesʼ understanding by creating a
test, so we will hold another workshop next year and gauge understanding
with a test.

Respect of property rights

Protection and utilization of intellectual property
rightsEngineering
Division

Offer training related to intellectual property rights to improve and maintainemployeesʼ awareness of the importance of protecting those rights.

We held a course on patent basics for new employees as part of new-hiretraining in an effort to increase employeesʼ knowledge and awareness.

Appropriate employment relationships and labor conditions(including safety and health, social dialog, etc.)

Encouragement of diversity

Human Resources
Division

Host information sessions about the company for female college students.

We held an information session for female college students and had female
employees visit a university laboratory to speak to students.

Development of additional skills and expertise in
making proposals

Marketing
Division

Work to improve the skills of department employees tasked with responsibilities inthis area by offering training to improve those skills and sharing skills and expertise.

We worked to share proposal expertise and information about topics such as
the latest technologies by holding internal lectures as necessary.

Training and skill development for employees

Construction
Division

Summarize concerns arising during product inspections and commissioning along with measurestaken in response on internal memos, share the information with department employees atinternal meetings and other gatherings, and disseminate it to other involved departments.

We spread information about quality control problems and examples, encouraged
employees to prevent recurrences through monthly internal meetings, and increased plantquality by spreading information about problems that have occurred during commissioning.

Development of structures for managing environmental
considerations and reduction of environment impacts

Compliance with environmental laws and regulations

Manufacturing
Division

Patrol company sites while offering guidance in order to ensure that novehicles are left idling.

The number of violations fell from the previous ﬁscal year, indicating that the practiceof turning off the engines of parked vehicles has become established as habit.

Contributions to resolving environmental
problems

Implementation of initiatives to reduce environmental
impacts

Engineering
Division

Formulate and propose plans for new technologies and businesses that would
allow us to help reduce environmental impacts in the environmental and energy
ﬁelds while differentiating ourselves from competitors in the same industry.

Although we achieved our goal, we will work to develop plans that will enable
us to make a greater contribution to the environment.

Contribution to society

Contribution to the communities around our worksites

General Affairs
Division

Help improve the environment in nearby areas by carrying out clean-up
activities in areas near worksites.

We helped improve the environment in the nearby area by carrying out
clean-up activities in areas near worksites.

Risk management

Safety and quality of products and services

Compliance with the Antimonopoly Act

Fair operating
practices

Going forward, we plan to implement CSR activities using techniques that we consider appropriate while relying on
guidance and advice from outside experts as we choose key issues and develop CSR issues and action programs.
The global business environment that characterizes the environmental and energy ﬁelds in which Takumaʼs business
operates grows increasingly diverse day by day, and that environment remains one of intensifying competition. Our
technological capabilities in the environmental and energy ﬁelds, which we have reﬁned over many years of experience, form
the basis of our CSR management as well as our greatest strength as we look to make a broad contribution to society. We willcontinue to draw on this strength in our activities going forward.

Fair business relationships with customers
and business partners

Employee skill development(skill enhancement)

TAKUMA CSR Report 2018

Action plan

Self-evaluation of results

TAKUMA CSR Report 2018

CSR Activities
for the Future

Organizational
governance

Key issue■ Future issues

42

CSR Activities for the FutureGroup Company CSR Topics
This section introduces messages from the presidents of major Takuma Group companies describing issues they haveidentiﬁed in the course of pursuing CSR activities and how they are working to address them.

■ Takuma Engineering Co., Ltd.
●

Established
Businesses●

Employees●■ Energy Mate Co., Ltd.

September 11, 1969
Design of waste treatment plants, water treatment plants,
energy plants, and general-purpose boilers
50 (as of March 31, 2018)■ Message from the President●

Established
Businesses●

Employees●■ Message from the President

Yoshihito FukumaWeʼre involved with designing industrial machinery that helps protect the environment and save energy. Since
we believe human resources are the most important management resource in design operations, our CSR
activities are focused on improving employeesʼ skills and ensuring that they can make the most of those abilities.
Weʼre working on a companywide basis to facilitate open communication, to develop the habit of taking theinitiative to improve the way things are done, and to put in place an environment that makes it easy for
employees to do their jobs. Weʼre also trying to create novel products by valuing individual employeesʼ ideas andmaintaining diversity.

●

Established
Businesses●

Employees●

Our company was founded with a core business of offering comprehensive onsite energy services
for consumer cogeneration and boiler products. Our goal is to provide ideal energy andcogeneration (solutions that provide both heat and electricity) to stakeholders, and since 2005 wehave also operated a steam supply business using biomass boilers. We work around the clock to help
prevent global warming together with the site users who are our customers. Our CSR activities
consist of offering services that let us contribute to customersʼ businesses by meeting needs in a
ﬁne-grained manner while verifying system effectiveness.

■ Taiden Environtech Co., Ltd. (Taiwan)

April 13, 1994
Development of computer software
Design, manufacture, sale, construction, and management ofelectrical control systems
24 (as of March 31, 2018)■ Message from the President

Established
Businesses● Employees●●

Norito Uchiyama■ Kankyo Sol-Tech Co., Ltd.
●

Established
Businesses●

Employees

Kiyomitsu Ikawa

We carry out environmental analysis and testing on a contract basis, and our reports play an important rolein the precise assessment of environmental conditions. Recognizing the importance of that responsibility, we
endeavor to do our jobs in a fair and appropriate manner by maintaining state-of-the-art equipment, training
employees in specialized skills and technologies, helping them earn associated qualiﬁcations, and ensuringthat they acquire and share knowledge about related laws and regulations. In this way, we strive in asustained manner to maintain and improve the quality of our services and to comply with norms of conduct.
Weʼve earned certiﬁcation under international standards such as ISO/IEC 17025 to assure the reliability of
the calibration services we provide, and we look forward to continuing to support the development of asustainable society and to consistently offering reliable calibration service of the highest caliber.

43

TAKUMA CSR Report 2018

Taiden Environtech Co., Ltd., is helping protect and improve the environment in Taiwan byoffering maintenance for waste incineration plants on the island. Weʼre working to provide safe,
conﬁdence-inspiring service based on extensive experience to meet the expectations of customers
and all other stakeholders and to provide optimal equipment maintenance so that the waste
incineration plants we maintain will perform to speciﬁcations over the long term.

■ Siam Takuma Co., Ltd. (Thailand)

April 5, 2000
Measurement and analysis of environmentally hazardous
substances (dioxins, asbestos, wastes, trace substances, etc.)
and general environmental measurement and testing
45 (as of March 31, 2018)■ Message from the President

January 26, 1988
Maintenance of waste treatment and other facilities
15 (as of March 31, 2018)■ Message from the Chairman Yasuo Takamatsu

As a member of the Takuma Group, we manufacture plant control systems for use in waste
treatment and develop and produce application software.
Our goal is to create a better tomorrow by harnessing the extensive expertise weʼve developed todate so that we can creatively accommodate a variety of changes in the business environment andcustomer needs and thereby achieve sustained growth.
Our employees are committed to working together to develop along with customers and to create
products that satisfy all stakeholders so that we can help create a rich and satisfying society that is
also environmentally friendly through our business activities.

●

Hiroaki Nanjo

CSR Activities
for the Future■ Takuma System Control Co., Ltd.

June 27, 2001
Onsite energy services for package boilers
and solutions-related businesses
8 (as of March 31, 2018)●

Established
Businesses●

Employees●

August 6, 2002
Sale of energy and environment-related plants, sales of parts
for the same plants and after-sales service
19 (as of March 31, 2018)■ Message from the Managing Director

Masahide Okamoto

Are we a reliable company for customers, business partners, employees, and other stakeholders? I
believe that answering this question lies at the heart of CSR. Particularly when operating overseas,
companies are called upon to engage in business activities that are founded on an understanding oneach countryʼs unique laws, culture, and characteristics. Acting with responsibility based onadequate preparations and fulﬁlling accountability with regard to those activities are essential inorder to be reliable, and we will strive to live up to all of our responsibilities as a member of the
Takuma Group.

TAKUMA CSR Report 201844

Corporate GovernanceCorporate GovernanceInternal Control

As of June 27, 2018, the Board of Directors was comprised of six
directors (excluding directors who are members of the Audit &Supervisory Committee) and four directors (of whom three wereoutside directors). The Board of Directors meets regularly once amonth as a rule and whenever else it is necessary to make decisions
about important issues related to business management and issues
established by law and ordinances, as well as to oversee theexecution of the directorsʼ duties.
In order to accelerate management decision-making and clarify
where management responsibilities are placed, we have adopted an
operating ofﬁcer system in which we appoint operating ofﬁcers whoare entrusted with the responsibility of executing our businessactivities. As of June 27, 2018, there were 14 operating ofﬁcers(including those who also serve as directors). Moreover, we have alsoestablished a Committee of Executive Ofﬁcers, which is chaired by
the president/chief operating ofﬁcer, as an organization that
deliberates matters that are brought up at meetings of the Board of
Directors and other important issues related to the execution of ourbusiness activities. This committee communicates and provides
direction about items decided by the Board of Directors and otherimportant items related to the execution of our business activities
appropriately to the divisions that are to execute them.

An Audit & Supervisory Committee that consists of four members,of whom three are outside directors, is responsible for accounting
and operational audits. Members of the committee attend important
meetings, including those of the Board of Directors and theCommittee of Executive Ofﬁcers, and they strive to understand andobserve the status of business execution in a timely and appropriatemanner. Drawing on their professional background and experience,
they express their opinions as necessary from an objective
perspective, and they conduct strict auditing of the businessexecution performed by the directors.
To facilitate the effectiveness of audits carried out by the Audit &Supervisory Committee, the president holds regular meetings withcommittee members to ensure good communication, and we haveestablished an Audit & Supervisory Committeeʼs Ofﬁce to provide
staff to help carry out the committeeʼs work.
In addition to the above, we have established a Human Resources& Remuneration Advisory Committee comprised of independentofﬁcers, representative directors, and the ofﬁcer in charge of humanresources. The committee works to increase transparency andobjectivity in the selection of candidates for director and operatingofﬁcer positions and in the determination of compensation as well as
to enhance the supervisory function of the Board of Directors.

General Meeting of Shareholders
Appointment
and removal

Reporting

Reporting andstatement of views

Appointment
and removal

Reporting

Reporting
Auditingandsupervision

Board of Directors

AdviceSelection,
dismissal,
andsupervision

Audit & Supervisory
Committee

Advisory Committee

Representative
Directors
Committee of Executive Ofﬁcers(Deliberation of important matters)

Issuance of
instructions andcommunicationof information

Audit & Supervisory
Committeeʼs Ofﬁce
Cooperation

Auditing of accounts

Auditing

Reporting

Regular meetings are held once a year. The person in
charge of promotion receives reports on the status ofcompliance and CSR promotion company-wide, as well ason the status of the implementation of compliance and CSR
promotion education for the past year, etc., and participantsdeliberate on a promotion plan for the current ﬁscal year.
Promotion members convene departmental meetings oncea quarter, with educational training aiming at the permeationof compliance and CSR in each department. After
departmental meetings, promotion members implement
compliance and CSR promotion education in their respective
departments using training materials or in-house educational
materials and report the result to the Secretariat.
We are also pursuing awareness-raising and educational
activities targeting Group companies through our Takuma
Group Coordinating Committee for Compliance & CSR
Promotion to ensure thorough compliance and risk
management throughout the Group.

Board of Directors
President

Committee of Executive Ofﬁcers

Compliance & CSR Promotion Organization
Internal Auditing
Department

Internal Auditing

Chairman (Executive Manager of the Compliance & CSR Promotion Division)

Compliance & CSR
Promotion DivisionInternal auditing

Secretariat (CSR Department)

Observing andguidance

Education,
instructions, andreporting

Takuma Group
Coordinating Committee forCompliance & CSR Promotion

Each division and center
Each department

Compliance & CSR Promotion Administrator (division or center manager)

Compliance & CSR Promoters (department manager)
Enlightenment/education

Staff members

Divisions and centers

Corporate governance structure
TAKUMA CSR Report 2018

Led by the department in charge of compliance and CSR
promotion (CSR Department), Takuma aims at
encouraging that activity through the Compliance & CSR
Promotion Organization that was installed for the purposeof enabling compliance and CSR to concretely permeate
company-wide through an in-house organization.
This organization is composed of a chairman (theExecutive Manager of the Compliance & CSR Promotion
Division), a secretariat (positioned in the CSR
Department), and an executing organization in eachdivision, center, and department.
As the person in charge of promoting compliance andCSR in his or her division, each division or center manager
is appointed as a Compliance and CSR Promotion
Administrator. As persons who implement awareness andeducation in compliance and CSR in their respective
departments, department managers are appointed as
Compliance and CSR Promoters.
The meetings conducted within this mechanism include
regular meetings and departmental meetings.

ReportingExecution of
responsibilities

45

Compliance & CSR Promotion Structure

Various committees

Reporting

ReportingDiscussion of andreporting onimportant matters

Executive Ofﬁcers

Accounting Auditors
Cooperation

Assistance

Recommendations

Discussion
Human Resources &andRemuneration
reportingAppointment
and removal

Reportingemergency headquarters are established with the company
president as the director in charge of risk management, andan organization is put in place in order to minimize andprevent further damage through prompt action.
Internal control, constructed and evaluated in order toreport on and prevent misstatements in our ﬁnancial
reporting, is based on the Financial Instruments andExchange Act. This internal control on ﬁnancial reportingfor the Group has resulted in reports that indicate thissystem has been effective.
In this way, we will continue to work in the future toensure thorough compliance while carrying out businessproperly and efﬁciently while also deepening risk
management.

Corporate
GovernanceAppointment
and removal

Takuma has adopted a Basic Policy for Establishment ofan Internal Control System (the full text is available on our
website) in accordance with the Companies Act. We
continue to review and improve this policy in response tochanging circumstances.
Working towards thorough compliance, Takuma built acompliance promotion organization in FY2006 in order tocontinuously implement enlightenment and educational
activities that make corporate ethics, related laws andordinances, and internal rules fully understood. To control
the danger of loss, we have also prepared a “RiskManagement Code” that determines the person in charge ofeach risk, and we set up our risk management organizationaccording to that Code. When the unexpected occurs,(As of June 27, 2018)

Compliance & CSR promotion structure
TAKUMA CSR Report 201846

Corporate GovernanceRisk Management Structure

Business Continuity Plan (BCP)

Takuma follows a “Risk Management Policy” that connects company-wide risks and separately classiﬁes them into “projectrisks” related to our core business, i.e., plant construction; “DBO project risks” and “DBO project operation, maintenance andmanagement risks” related to our DBO business; and “potential risks,” “actualized risks,” and “ﬁnancial reporting risks” related
to other corporate business activities.
We are also building a risk management organization and constructing a system of risk management and promoting thestrengthening of management for group companies as well through our Takuma Group Coordinating Committee forCompliance and CSR Promotion.

Takuma has formulated a “Business Continuity Plan” based on the following policies to ensure proper and appropriate
continuity of business operations in the event of a large-scale disaster, pandemic, or other emergency:

Risk Management Policy

1. In addition to implementing disaster-related measures to secure the safety of corporate ofﬁcers and employees,
maintain structures so as to enable continuity of business operations while minimizing damage in an emergency.
2. Strive to respond to customer needs and recover from damage quickly by working closely with suppliers and partnercompanies to continue business operations.
3. Earn the trust of numerous stakeholders, including employees, their families, shareholders, and nearby residents, andfulﬁll social needs by continuing business operations.

【Disaster rule system diagram】［Basic purpose of risk management］
Risk refers to all phenomena that interfere with the groupʼs ability to achieve its business objectives or cause losses orharm to the interests of stakeholders.
The Takuma Group practices risk management with the goal of increasing its corporate value by working to maximize
returns while minimizing the negative impacts of risk.

Risk Management Policy
Risk Management CodeCrisis Management Code［Risk management action guidelines］
1. The president and CEO is responsible for risk management at Takuma.
2. All ofﬁcers and employees participate in risk management activities.
3. Risk management activities are carried out in accordance with applicable guidelines such as the Risk Management
Rules.
4. Risk management activities are carried out in line with the Medium-Term Management Plan and annual plan, and wework to make improvements on an ongoing basis.
5. When risk manifests itself, we respond by taking responsible action quickly to minimize any damage and creating
provisional organizational entities as necessary.
6. Group companies carry out risk management activities in accordance with their own policies and plans, with support
from Takuma.

Overseas Risk Management CodeDisaster Prevention Management Code* Based on Fire Service Act
Enforcement Regulations

Fire Prevention Plan

BCP activation

Storm and Flood Damage Countermeasure Manual
Novel Inﬂuenza Countermeasure ManualBusiness Continuity Plan
(BCP)

Corporate
Governance

Earthquake Countermeasure Manual

Safety Conﬁrmation System Administration Rules

Board ofDirectors

Reporting

Request for
decision/
reportingPresident

Committee of Executive Ofﬁcers
Request for
decision/
reporting

Evaluation

Report oninternal
controlevaluation
concerning
ﬁnancial
reporting

Reporting

Reporting

Risk Management Department

Internal Auditing
Department

Planning/
reporting

Project risk
DBO Project risk
DBO Project operation,
maintenance and management risk

Potential risk

Risk management structure

In keeping with the “Takuma Group Code of Conduct,” we provide our shareholders and investors with accurate corporate
information in a timely and fair manner. As a part of this, we provide notiﬁcations on the convening of General Meetings ofShareholders, balance sheet information, timely disclosure information, marketable securities reports, annual reports in English
and other business information, all on our website.
[Takuma website > IR information]
http://www.takuma.co.jp/english/investor/index.html

Eachdivision

Treasury stock:
0.1％
Individuals, others:
9.3％

Financialreportingrisks

Evaluation

Takuma Group Coordinating
Committee for Compliance & CSR
Promotion (including risk matters)

TAKUMA CSR Report 2018

Risks
concerning
corporate
activities

Actualized risk

Evaluation

47

IR Activities

Risk Management Code, Crisis Management Code
Project Risk Management CodeDBO Project Risk Management CodeRisk Management Code for DBO Project Operation,
Maintenance and Management

Financial institutions andstock brokerages:
44.7％

Corporations in Japan:
14.9％

Group
companies
Foreign individuals:
31.0％

Shareholders Report

Composition of shareholders(as of March 31, 2018)

TAKUMA CSR Report 201848

Corporate GovernanceDirectors and Executive Ofﬁcers(as of June 27, 2018)■ Directors■ Executive Ofﬁcers

Takashi Manabe

Ryoji TaniManaging Executive Ofﬁcer

Managing Executive Ofﬁcer

Mitsuaki Adachi

Managing Executive Ofﬁcer

Executive Ofﬁcer

Corporate
Governance

Norito Uchiyama

Akira Taguchi

Hidetoshi Tomita

Executive Ofﬁcer

Executive Ofﬁcer(Back row, from the left)

Minoru Murata

Hiromichi Satake Koji Tanaka

Osamu Iwahashi Yasushi Enomoto

Outside Director(Audit & Supervisory
Committee Member)

Outside Director(Audit & Supervisory
Committee Member)

Outside Director(Audit & Supervisory
Committee Member)

Director
Executive Ofﬁcer

Director(Audit & Supervisory
Committee Member)(Front row, from the left)

49

Tsuyohito Nishiyama

Kengo Numata

Takaaki Kato

Hiroaki Nanjo Hideki Takeguchi

Director
Managing Executive Ofﬁcer

Director
Executive Vice President

Representative Director
President andChief Executive Ofﬁcer

Director
Senior Managing
Executive Ofﬁcer

TAKUMA CSR Report 2018

Norio Maeda

Kunio Hamada

Executive Ofﬁcer

Executive Ofﬁcer

Director
Managing Executive Ofﬁcer

TAKUMA CSR Report 201850

Human Rights and Labor Practices

Respect for Human Rights and the Abolition of Discrimination
Our company sets out its respect for basic human rights
and prohibition of discriminatory acts in the Takuma Group
Ethics Charter, Takuma Group Code of Conduct and labor
regulations. In addition, we also support respect for humanrights, without contributing to human rights violations,elimination of forced labor/child labor and the abolition of
discrimination through participation in the UN Global
Compact. We are also working to promote employment of
disabled and elderly individuals.

●

Programs to boost employee skills

Takuma Group Ethics Charter (excerpt)

4. We shall respect fundamental human rights andnever practice discrimination.
●

Takuma Group Code of Conduct (excerpt)【Respect for basic human rights】
9. Prohibition of discriminatory actions
10. Respect of individuality, personal quality and privacy

1. Grade-speciﬁc educational programs
We work to boost employee skills through grade-speciﬁc educational programs that mark career milestones, startingwith new-employee training and moving on to a technical presentation at the two-year mark, a thesis discussion at theﬁve-year mark, a presentation at the 10-year mark, and mid-career training. We also work to improve management
skills by offering training to management candidates.

11. Safe work environmentNew-employee
training

Lecture on harassment

Technical presentationby 2-year
employees

Thesis discussionby 5-year
employees

Presentation by
10-year employees

Mid-career
training

Management
training

In January 2018, we invited attorney Yukiko Higashioka of Koyano LPC to deliver a talk on
harassment entitled “Compliance and Harassment.”
She explained laws related primarily to sexual harassment and power harassment in speciﬁc
terms and included information about Takumaʼs regulations and systems, providing an
opportunity for employees to learn about preventing harassment and how the company
responds to such allegations.

Working with Our Employees

2. Technical training sessions

Takuma is implementing a variety of measures to enable each and every employee to make the most of his or her abilities
and to approach his or her job with motivation and interest.

At the beginning of each ﬁscal year, employees meet with their supervisor to determine their objectives for the year based on theirdepartmentʼs policies. They also participate in a midyear interview with their supervisor in September and in an interview thefollowing March to reﬂect on the year, with the supervisor offering feedback by evaluating their job performance. In this way,supervisors work to train and motivate their subordinates through two-way communication.

Implementationof objectives

Midyearinterview

Implementationof objectives

Evaluation

Feedbackinterview

2. Self-reporting system
We have introduced a self-reporting system that allows employees who have worked for the company for at least three years tocommunicate their thoughts on their future career path directly to the company every three years. Through this system we areworking to assess employeesʼ awareness, needs, and issues and to apply that information to human resources measures.

3. Work group transfer system
We have created a work group transfer system to facilitate movement from clerical and labor positions to the main career track sothat motivated and skilled employees can make use of their abilities regardless of their gender or academic background. We also
provide opportunities for employees to be promoted to management positions.

4. In-house commendation system
Each year on June 10, the anniversary of the companyʼs founding, we recognize employees
who have helped improve the companyʼs performance; done something exceptional outside thecompany; earned qualiﬁcation as a professional engineer, doctoral degree, patent, or otheraccomplishment; worked for the company continuously for a certain number of years; authoredan exceptional paper; supervised an accident-free site; or otherwise earned recognition.

51

TAKUMA CSR Report 2018

We offer a course to help employees prepare to earn certiﬁcation as professional engineers, with employees who
have already earned those qualiﬁcations offering guidance on solving examination questions and conducting
simulated oral examinations.

Human Rights andLabor Practices

the cost of license and qualiﬁcation examinations and by offering incentives to employees to earn such qualiﬁcations.

1. Objective management and human resources evaluation system

Establishmentof individual
objectives

3. Skill improvement support structures
We work to improve employeesʼ skills by helping them earn public qualiﬁcations, for example by reimbursing them for

Systems designed to boost employee motivation

Organizational
objectives

We hold technical training sessions in order to increase employeesʼ technical knowledge, including lectures byuniversity professors and outside researchers and presentations by Takuma engineering employees about their work
responsibilities and research themes.

Workstyle reform initiatives
1. Initiatives to correct excessive working hours
In addition to having the Human Resources
Department interview employees with excessive
working hours and their supervisors to assess thecauses of the phenomenon, we are pursuing initiatives
to study and implement corrective measures and toverify their effectiveness.

2. Initiatives to encourage employees toutilize annual leave and other programs
During the second half of FY2016, we began
implementing a measure to have employees
systematically utilize ﬁve days of the time off theyʼreallowed under annual paid leave and other programs.

Employee health initiatives
In addition to stress checks and examinations to assess the risk of adult-onset diseases, our annual health checkups include
cancer and gastric checks for employees who wish to have them.
We also hold health consultations by an occupational physician (once a month) and counseling sessions by a clinicalpsychologist (twice a month) as part of our commitment to facilitating employeesʼ physical and emotional health.

TAKUMA CSR Report 201852

Human Rights and Labor Practices

Efforts for Occupational Safety and HealthWorking with Our Employees
Initiatives to promote the participation of
female employees in the workplace

Occupational safety and health initiatives
Since FY2006, we have introduced TK-COHSMS based on an occupational safety and health management system for theconstruction industry and worked actively and independently to improve our safety and health activities. We believe that among
these efforts, the manner in which (1) safety inspections, (2) mandatory safety and health education (education for construction
site representatives), and (3) creation of pre-work safety procedure checklists known as SSAs have been steadily adopted by all
departments and used to consistently improve the level of knowledge about Takumaʼs safety and health is particularly noteworthy.
We have adopted the following safety and health objectives for FY2018: for construction sites, eliminating accidents that
result in work stoppages (of four or more days); for branches, pursuing a thorough program of safety and health education,
ensuring adherence to safety inspection guidelines, and implementing the branch safety patrol plan; and for the Safety and
Health Cooperative Association, strengthening collaboration with partner companies. We will work to revitalize safety andhealth activities throughout the company by carrying out that role.
Rather than contenting ourselves with the status quo, we will pursue new safety and health initiatives to foster a deep
awareness of the concept that underlies our safety and health policy̶“understanding the need for respecting people andgiving top priority to safety and health”̶on the part of everyone whoʼs involved in our operations.

We have formulated and made available a general employer action plan inaccordance with the Act on Promotion of Womenʼs Participation and Advancementin the Workplace, and we have worked to deepen understanding of the company
on the part of women by including information about talks by female employees
on our recruiting website and by holding information sessions for female college
students. In addition, we are working to increase the number of female employees
in management positions and the number of female employees on the main career
track (including individuals who have been tentatively offered positions) as ofMarch 31, 2021, to 20, which would be double the corresponding number as ofMarch 31, 2016, by putting in place a workplace environment that allows ﬂexible
workstyles and continued employment by women, for example by expanding
eligibility for our ﬂex time system.

A talk by a female employee (top) andan information session (bottom)

Promoting employment of senior citizens●

We have put in place programs to offer employees
who have left the company after reaching 65 yearsof age reemployment at Takuma and Group
companies.

1. Safety inspection system

Number of reemployed individuals over the past 5 years
FY2013

FY2014FY2015FY2016FY2017

Number of employees
reaching retirement age

8

12

11

3

5

Number of employees
desiring reemployment

6

10

10

2

5

Number ofreemployed employees

6

10

10

2

5

Child-raising and nursing care support measures
1. Reduced working hours and ﬂex time program
We offer reduced working hours to employees who are raising one or more children age two or younger as well as a
ﬂex time program for employees who are raising one or more children from age three through lower elementary school(through third grade). We also allow employees who are responsible for providing nursing care to a family member toutilize these programs.

2. Telework program
Since April 2015, we have allowed employees who are raising one or more children who have not yet begun
attending elementary school or who are responsible for providing nursing care to a family member to work from home
one day a week.
Impressions from an employee who has taken advantage of these programs

I have two infant children, and in our family, the hour between the time the kids wake up in the morning andthe time they leave the house, and the hour from the time we pick them up in the evening until we have dinnerare extremely difﬁcult, both physically and emotionally. By working from home, Iʼve been able to allocate timethat I would otherwise spend commuting to childcare and household chores during those times, and thatʼs been
extremely helpful by letting me reduce my wifeʼs workload.

We maintain a system where any construction or installation work starts
only after the safety and health manager or other responsible ofﬁcial ineach department conducts a successful safety inspection based on safety
and health plans for the construction or installation work as prepared byour primary partner companies.
We strive to ensure a safe work environment at all construction sites by
eliminating potential hazards and risk factors identiﬁed by thoseinspections before work begins.
●

A safety inspection meeting
Human Rights andLabor Practices

We offer the following work programs as support measures for employees with child-raising and nursing care responsibilities.

●

Safety and health activities and their results

FY2017
Number of safety inspections done: 160(Initial inspection pass rate: 94%)

2．Safety patrols and ﬁeld education
Based on an annual plan, safety patrols are carried out at worksites by the Safety and Health Committee (comprisedof committee members and advisors), Safety Control Department, and construction division along with safety
education in the ﬁeld in a precisely targeted and efﬁcient manner.
By focusing on the early discovery and elimination of risk in safety patrols and on the improvement of safety
awareness among workers through communication skills in ﬁeld education, these activities help ensure the safety of
Takumaʼs workplaces.
●

Number of safety patrols implemented in FY2017
By Safety and Health Committee (members, advisors): 28
By Safety Control Department:297
By construction division:
305

Social welfare programs that meet employee needs
We have introduced cafeteria-style social welfare programs as one way to meet a diverse range of employee needs. Thisapproach provides a ﬁxed annual allowance that employees can “spend” as they wish by choosing from a menu of beneﬁts that
includes support for self-study, child-raising and nursing care, healthy living, and ﬁnancial well-being.

53

TAKUMA CSR Report 2018

Field education

Safety patrols

TAKUMA CSR Report 201854

Human Rights and Labor Practices

Efforts for Occupational Safety and Health
3. Safety and health education (education for construction site representatives)

Message from a partner company

We continuously provide specialized safety and health education at branches and worksites to increase the levels ofsafety awareness and knowledge of our employees and partner companies.
As indicated below, more than 16,000 trainees have passed the completion exam. We are involved in a variety of
initiatives to put in place mechanisms for preventing accidents, including by assigning workers with extensive knowledge
in areas such as safety-related laws and ordinances to individual construction sites.
●

April, 2004 to March, 2018
Cumulative number of trainees:
33,362
Number of trainees passing the completion exam: 16,050

Toshiya Sakaguchi
President
Chokyu Chikuro Industries Co., Ltd.

Our company, which recently celebrated the 47th anniversary of its founding, focuses
primarily on repairing waste incineration facilities in western Japan. Our previous president
did business for many years with Takuma, and Iʼve learned much about a variety of topics
from Takuma since I ﬁrst joined the company, including furnace installation technology andsafety and health management.
Safety and health management activities are the responsibility of each company, and wecarry out branch safety patrols on worksites to check every aspect of the work going on there.
In addition, I believe it is our mission to keep tabs on each workerʼs state of health and to
conﬁrm that all rules are being followed and that SSA and KYK (hazard prediction activities)
are being carried out using the “genba, genbutsu, genjitsu” philosophy.
A major challenge for us going forward will be Japanʼs labor shortage, and weʼre particularly
focused on training young furnace installation technicians. With regard to strengthening
supervisor skills, we plan to do our best, both by offering in-house training and by
participating in site agent training offered by Takuma.
In closing, we will continue to strive in partnership with Takuma to create workplaces
where employees can work safely and with peace of mind and to complete installation workwith zero accidents by following the slogans of “avoiding injury” and “absolutely avoiding
causing injury.”

Message from Takumaʼs person in charge of procurement
Head Ofﬁce venue

Tokyo Branch venue

Takuma holds a Safety and Health Meeting to bring workers with safety- and health-related responsibilities together toimprove and share their safety and health awareness with the goal of ensuring worker safety and health and promoting thedevelopment of a pleasant work environment.
The FY2017 meeting included awards for partners who helped achieve zero-accident records at worksites and employees
who achieved zero-accident performance over many years as worksite managers along with a lecture entitled “Proper Use ofWork Safety Equipment” and a talk by an outside instructor entitled “Preventing Human Error: Preventing Errors throughTeamwork.” In addition, safety and health partner companies gave presentations on their safety and health policies and goals,
and all participants closed the meeting by chanting the FY2017 slogan and pledging to continue to work toward thoroughsafety and health management by utilizing TK-COHSMS.

Shinobu Arakawa
Manager
Section 4,
Construction Department (Osaka)

Takumaʼs safety results in recent years
During 2017, both the construction industry and Takuma beneﬁted from brisk business conditions. Although the total
number of occupational accidents, including accidents that did not result in work stoppages, fell compared to 2016, thenumber of accidents that impacted our safety record by necessitating work stoppages rose. In addition to enhancing our safety
and health management structures in order to halt this trend, we will work to ensure even more thorough risk management
through a uniﬁed effort by all involved so that we can redouble our resolve to eliminate occupational accidents.
15

Number ofcasualties(persons)

4.0

3.93
2.79

3.00

10

9

12
5

Presentation of a zero-accident record award

Pointing and chanting of the slogan by all participants
0

0.37
1
2013

0.79
3

1.13
3

0.03

0.02

2014

2.03

2015

2016

Takumaʼs safety results
55

TAKUMA CSR Report 2018

Human Rights andLabor Practices

Safety and Health MeetingWeʼre extremely grateful to Chokyu Chikuro Industries Co., Ltd., which has worked with
Takuma as a partner company for close to half a century, primarily by repairing furnaces at
waste incineration facilities.
Youʼve worked steadily to ensure the safety and health activities that Takuma carries out at
its worksites have taken root among your employees, and the results of this steady effort toraise safety awareness on the part of all workers in the ﬁeld has helped you continue to operate
without any accidents that resulted in a work stoppage for about 20 years. As a result of thistrack record, youʼve made a signiﬁcant contribution to our efforts to build safe workplaces.
Although there are many causes for concern as you continue to operate your business,
including the labor shortage in the construction industry, I hope that your company willcontinue to grow while thoroughly practicing and enhancing risk management to addresschanging conditions.

1.76

3.0 Takumaʼs
accident
frequency
2.0 rateandseverity
1.0 rate

0.0
2017 (Year)Year

Accident
frequency
rate

Accident
severity
rate

2013

1.25

0.23

2014

0.91

0.07

2015

0.92

0.21

2016

0.64

0.11

2017

0.81

0.18

∗ Accident frequency rate
Indicates the frequency with which accidents
occur as the number of fatalities caused byoccupational accidents per 1 million actual
working hours.
Number of fatalities
Total actual working hours

1,000,000∗ Accident severity rate
Indicates the seriousness of accidents as
the number of work-days lost per 1,000
actual working hours.
Total work-days lost
Total actual working hours

1,000

Reference: Nationwide accident frequency and severity rates
for the construction industry (general construction)
TAKUMA CSR Report 2018

56

The Environment
Basic Environmental Policy

Takumaʼs CO2 Reduction Technologies

Our company has established the “Basic Environmental Policy” as follows, aiming to ensure employees contribute to global
environmental conservation. This basic policy applies to the activities of all company departments.

We convert waste/biomass into energy and reduce CO2!

In 1 year, Takuma products

Environmental Philosophy
Takuma is committed to preserving the environment and realizing an afﬂuent society through business activities

cut about 5million tons!

under the Company Motto: “Value Technology, Value People, Value the Earth.”(Equivalent to the CO2 absorbed by about 350 million Japanese cedar trees*)

Operational Guidelines
1. All Takuma Group companies will recognize the importance of maintaining a balance between preservation of theenvironment and business activities.
2. Continuously develop activities to preserve the environment that comply with applicable environmental laws andordinances, and ensure environmental control and assessment systems conform to international environmental
standards.
3. Promote development of improved technologies and products for society that preserve the environment.
4. Address resource conservation, energy efﬁciency, recycling, and minimization of waste generated by all businessactivities.
5. Improve employee awareness and understanding about the importance of preserving the environment throughenvironmental education and internal promotional activities.
6. Provide the community with information on the activities of Takuma to preserve the environment.

*Assuming one Japanese cedar tree absorbs 14 kg of CO2 per year.

■ Reducing CO2 with biomass power generation boilers
A classic example of biomass power generation can be found in sugar
factories. Factories that make sugar produce large quantities of residue fromsugarcane, the raw material used to make sugar. Sugarcane is crushed into apulp, and sugar is extracted in a mill. The remaining ﬁber is called bagasse
and can be used as boiler fuel. The steam produced is used as the plantʼs heatsource, and any remaining steam is used to generate electricity that is utilized
to operate the plant and, if any remains, sold to the electric power company.
The amount of power generated at sugar factories has grown greatly, with
examples of single plant that generates 50,000 kW.

In 1 year,

down about
4million tons!
CO2 reduction achieved by
Takumaʼs biomass power generation boilers

Environmental Management●

What is biomass?

Biomass is any recyclable organic material derived from aliving organism, but does not include fossil fuels, such as oiland coal. For example, even though CO2 is emitted if wood
waste products are incinerated, when trees grow again, they
absorb CO2 to offset the emissions from incineration, so
there is no increase in CO2 in the atmosphere. By using theheat produced by incinerating biomass to generate power,
the amount of power generated using fossil fuels can be
reduced, and this contributes to decreasing CO2.

Wood
chips
BagassePalm
kernelshellsEnergyBiomass-fueled power
generation boiler

The Environment

The situation concerning the acquisition of ISO 14001
Our Harima Factory has acquired ISO 14001 certiﬁcation and has been implementing environmental management activities
based on an environmental management system established to comply with international standards.
Our group companies Nippon Thermoener Co., Ltd., Takuma Technos Co., Ltd., and Dan-Takuma Technologies Inc. have alsoacquired ISO 14001 certiﬁcation.

●(as of end of FY2017)■ CO2 reduction from waste incineration plants
Garbage, or waste, is an important source of energy. About 500 kW** ofpower can be generated from one ton of garbage. In Europe and theAmericas, waste incineration plants are often called Energy from Waste (EfW)
plants, and recovering energy from garbage has become the norm. Waste
must be seen as a “resource,” so Takuma is seeking to be the best in the world
with our technologies to convert waste into energy and reduce CO2.
** Presumes waste with a caloriﬁc value of 8,800 kJ per kg and a power generation efﬁciency of 20%

1 ton ofgarbage
57

TAKUMA CSR Report 2018

Waste
combustion

About 500 kW of

In 1 year,

down about
1million tons!
CO2 reduction achieved by Takumaʼs municipal solid waste
incineration plants and industrial waste incineration plants(as of end of FY2017)

power generated
TAKUMA CSR Report 2018

58

The Environment■ Environmental accounting

Environmental Reporting
Takuma reports the environmental impact of its business activities as well as the manner in which it takes environmental
considerations into account in accordance with the Environmental Reporting Guidelines (issued by the Ministry of the Environment).
This environmental reporting program includes not only environmental information extracted from our overall business activities
from an environmental standpoint, but also information about related economic and social aspects of those activities.

■ Environmental data (non-consolidated)●

Total energy consumption●

Greenhouse gas emissions

●

6,000
(Tons-CO2 per year)(GJ per year)

120,000

80,00040,0000

Environmental accounting is the process by which companies and other entities recognize the cost of environmental conservation in
their business activities as well as the effects of those activities and measure and communicate them in as quantitative a manner as
possible (either in terms of monetary amounts or amounts of materials) with the goal of pursuing environmental conservation initiatives
in an efﬁcient and effective manner while maintaining a good relationship with society so as to facilitate sustainable development.
In FY2006, we introduced and disclosed our own environmental accounting system based on the “Environmental Accounting
Guidelines 2005” issued by the Ministry of the Environment. As our business activities mainly involve environmental conservation
plants and their equipment, Takuma Group employees have a signiﬁcant awareness of the need for environmental conservation, andwe have been implementing approaches toward such issues within the Takuma Group.

2014

2015

2016

2017

4,000

Item

2,000

(FY)

2013

The total energy consumption of the fuel and the electricity
consumed at Takuma during FY2017 fell slightly compared to
FY2016 levels. We will continue to promote energy savings
from here on out.

2014

2015

2016

2017

(FY)

The greenhouse gas emissions created by our company are
limited to carbon dioxide (CO2). The amount of CO2 emissions
in FY2017 fell slightly compared to FY2016 levels. We willcontinue striving to reduce CO2 emissions.

Waste generation●

Waste generation

900

90,000(m3 per year)(Tons per year)

Final disposal treatment

600

30

30,000

2014

2015

2016

2017

2013

(FY)

Our company sells recyclables and reusables from the waste
generated through its business activities to scrap dealers, while
outsourcing the treatment of non-recyclables and non-reusables
to haulers, processors and ﬁnal disposal dealers, in accordancewith the Industrial Waste Control Manifest system.

2014

2015

2016

2017 (FY)

Takumaʼs water consumption during FY2017 fell slightly
compared to FY2016 levels. Going forward, we will continue towork to lower our water use.

Although our business activities do not involve a wide variety of chemical substances on a massive scale, we use a few
designated chemical substances. Consequently, we report and register such chemical substances designated under the
Pollutant Release and Transfer Register (PRTR), in accordance with relevant laws and ordinances, with the local government.

59

Dichloromethane (CAS No. 75-09-2)●

Toluene (CAS No. 108-88-3)

FY

2013

2014

2015

2016

2017

FY

2013

2014

2015

2016

2017

Emissions (tons per year)

0

0.3

0.4

0.4

0.5

Emissions (tons per year)

0.08

0.08

0.26

0.09

0.62

●

Environmental conservation effectEven as total environmental impacts must be reduced, it isnecessary from a business management standpoint to pursue
environmental initiatives that are characterized by a high degree of
economic efﬁciency. We report environmental efﬁciency using an
index calculated in accordance with examples provided by the
Ministry of the Environment in its Environmental Performance
Indicators Guidelines for Organizations.
At the Takuma Group, we calculate environmental efﬁciency as
the ratio of consolidated net sales to greenhouse gas emissions. In
FY2017, this value improved slightly compared to FY2016.
●

Xylene (CAS No. 1330-20-7)
FY

2013

2014

2015

2016

2017

Emissions (tons per year)

1.4

3.4

2.2

2.9

1.2

TAKUMA CSR Report 2018●17,19721,806
12,971
46,685
1,361,328
9,925
1,469,912

Takuma Co., Ltd. (Head Ofﬁce, other ofﬁces
including overseas sites and the Harima Factory)●

NIPPON THERMOENER CO., LTD.

●

Takuma Technos Co., Ltd.

●

Hokkaido Sanitary Maintenance Co., Ltd.

●

Takuma Technos Hokkaido Co., Ltd.

●SUNPLANT Co., Ltd.

●

Takuma Engineering Co., Ltd.

●

Takuma System Control Co., Ltd.

●

Dan-Takuma Technologies Inc.

●

Kyoritsu Setsubi Co., Ltd.

●

Kankyo Sol-Tech Co., Ltd.

●

Takuma Plant Service Co., Ltd.

[2 overseas subsidiaries]
Taiden Environtech Co., Ltd.
Siam Takuma Co., Ltd.
●●■ Environmental efﬁciency■ PRTR target substance emissions●

Companies targeted:[12 domestic companies]

Item
FY2016FY2017(1) Environmental conservation effect concerning resources input forbusiness activities
97,416
101,681
Total energy input (GJ)
45,46050,584
Water resources input (m3)(2) Environmental conservation effect concerning environmental loads andwastes created by business activities
4,131
4,337
Greenhouse gas emission volume (tons-CO2)
1,028
976
Waste generation (tons)
131
163
Final disposal volume (tons)
45,46048,299Total drainage volume (m3)
2,448
2,720
BOD emissions (kg)
2,613
2,898
COD emissions (kg)645
698
T-N emissions (kg)111
119
T-P emissions (kg)60,0000
2013

21,851
15,190――4,028―
41,069Period covered:
April 1, 2017, to March 31, 2018

The Environment

0●

According to the “Environmental Accounting Guidelines,” environmental
conservation effects measure on a material basis the effects of preventing,controlling, or avoiding environmental impacts, eliminating their effects,
recovering from associated damage, and initiatives to aid in the same.

Water usage

Recycling●

Investment
Costs(thousand JPY) (thousand JPY)

Business area costs
Pollution prevention costs
Global environmental conservation costs
Resource recycling costs
Management activity costs
Research and development costs
Social activity costs
Total
●

●

Scope of data collected

According to the “Environmental Accounting Guidelines,” environmental
conservation costs measure on a monetary basis investments and expenditureson preventing, controlling, or avoiding environmental impacts, eliminating theireffects, recovering from associated damage, and initiatives to aid in the same.

0
2013

Environmental conservation cost

These materials are used for antirust painting of boiler
structures and so on.

The Takuma Groupʼs deﬁnition of environmental efﬁciency
Consolidated net sales (million JPY)

40
29.12

30
22.46

24.42

26.82

28.61

20
10
0

2013

2014

2015

2016

2017

(FY)

Environmental efﬁciency

Greenhouse gas emissions (tons-CO2)

TAKUMA CSR Report 201860

Fair Business Practices
Compliance & CSR Promotion Education
Takuma offers compliance and CSR promotion education through the Compliance & CSR Promotion Organization (see page46), which was established in order to spread awareness of compliance and CSR issues among employees.
During FY2017, we implemented education focusing on compliance and CSR promotion in four separate stages (see below) in
keeping with our policy of pursuing a sustained and thorough program of improving compliance and CSR awareness and risk
management based on a consideration of internal conditions and the characteristics of Group companies in response to social
requirements and expectations in accordance with the basic policy of cultivating a robust corporate culture and the perspectives ofaccommodating environmental change and practicing risk management as set forth in the 11th Medium-Term Management Plan.

●

1st term: Bid-rigging and the Antimonopoly Act●

2nd term: Takuma CSR comprehension test●

3rd term: Risk management, security export control●

4th term: Compliance and harassment, forward-looking CSR activities: CSR issues and an action program

During FY2017, we invited experts to give the following talks to management-level employees:

2nd lecture (January 24, 2018)“Group management and the responsibilities of parent
company ofﬁcers”(Lecturer: Ms. Junko Yamada, Professor, The Konan Law
School)Initiatives to ensure compliance with the Antimonopoly Act
Towards ensuring permanent compliance with the
Antimonopoly Act, Takuma enacted “Regulations
Concerning Management of the Pledge of Antimonopoly
Act Compliance,” which provides for the submission of awritten oath in regard to observing the Antimonopoly Act.
“Rules on Controlling Contact with Competitorsʼ Sales
Departments, Etc.,” deﬁnes the procedure for an employee
to contact the sales department, etc., of a competitor andspeciﬁes that an application should be made to and an
approval should be obtained from the afﬁliated division orcenter manager in advance to ensure fair business contact.

61

TAKUMA CSR Report 2018

Holding training sessions about the Antimonopoly Act
We hold regular training sessions about the
Antimonopoly Act to deepen participantsʼ understanding of
the act and to ascertain the latest information about it.

●

Introducing a Legislation Information Service
In order to allow its employees to gain a continuous grasp of
the latest changes to laws and ordinances, Takuma introduced aLegislation Information Service. In this system, legislation alerts
highlighting revisions to, and abolition of, laws and ordinances
are sent by e-mail in advance to employees, who can also review
detailed information about the corresponding law or ordinance on
the website as needed.
In addition to current laws and ordinances, the system lets users
search for legal precedents and public comments to facilitate aneven greater understanding of relevant laws and ordinances.

●

Takuma has been operating an in-house reporting systemsince FY2006, with the aim of promoting compliancemanagement by uncovering illegal or unfair acts as early as
possible and undertaking corrective measures.
Reporting contacts are set up at our Compliance & CSR
Promotion Division and at an outside law ofﬁce, as well as a
dedicated outside report contact for anonymous e-mailreporting. Our “In-house Reporting Code” and the Takuma
Group Code of Conduct further declare that no informant
shall be subjected to disadvantageous treatment simply due
to his or her having ﬁled a report.
Furthermore, in order for this system to be correctly
understood and utilized, we distribute a card to all employeeswith information on the reporting contacts and regularly
publicize the system.

Persons seeking consultation or making reports
Response
Outside report contact(Anonymous e-mail)

Consultation
or report

Law ofﬁce

Compliance & CSR Promotion Division(Investigation and response)
In-house reporting process

Material Procurement Policy
Our Purchasing Department carries out procurement【Material Procurement Policy】
activity in accordance with its Material Procurement Policy.
We provide fair opportunities for all suppliers, irrespective
1. Treat all candidates fairly when selecting a supplier.
of nationality, company size, or transaction history. Suppliers
2. Strive to discover new manufacturers.
are selected based on our comprehensive evaluation of their
3. Strictly control conﬁdential information.
reliability and safeness in terms of quality, price, delivery,
etc., as well as their abilities in technological development
4. Strive to acquire new and pertinent information.
and supply capabilities.
5. Promote green procurement.
Long-term stable transactions with dependable suppliers
6. Comply with laws and ordinances related toresult in improved product reliability and greater corporate
business dealings.
value. We, therefore, seek to establish relationships of mutual
7. Always keep VA and VE in mind.
trust and mutual development with our suppliers.
8. Strive for self-development.
While also respecting relevant laws and regulations as well
as social norms, we strictly control and maintain any
conﬁdential information that we obtain through our business
transactions.
More information about the procurement procedures used by our Purchasing Department is available on the following
website:[Takuma website > Material Procurement] http://www.takuma.co.jp/procurement/ (content in Japanese)

TAKUMA CSR Report 2018

Fair Business
Practices

Compliance Measures●

As a means of understanding the level of awareness of compliance and CSR and the level of permeation of education that
promotes these priorities, and employing that data as reference for the integrated activities carried out during each ﬁscal year
and for the following ﬁscal yearʼs action plan, we have conducted the “CSR Awareness Survey” every year since FY2008 withthe end goal of utilizing that information for future compliance and CSR promotion activities. The survey has included Group
companies since FY2013.
We actively use survey results in our activities, for example by offering additional education in areas that received lower
scores than in the previous survey.
We will continue to offer this survey and use its results to improve compliance and CSR promotion education on an ongoingbasis.

In-house Reporting System■ CSR lectures for management-level employees

1st lecture (September 27, 2017)“Compliance as a way to increase corporate value: Taking
advantage of internal reporting systems”(Lecturer: Mr. Kiyoshi Endo, Attorney at Law, Endo
Kiyoshi Law Ofﬁce)

CSR Awareness Survey

62

Consumer Issues

Activities Involving Product Quality
The amount of attention paid by consumers (stakeholders) to quality in a wide range of ﬁelds, including manufacturing andservices, has been growing in recent years. This section introduces Takuma initiatives that are designed to provide safe,
conﬁdence-inspiring products and plants.
Takuma has earned certiﬁcation under the ISO 9001 standard on management systems, and in December 2017 we completed ourtransition to the latest version of the standard, the 2015 edition. In addition to working to improve the quality of our products inaccordance with our Quality Policy and quality management system, we are pursuing activities that emphasize customer satisfaction.
In order to produce products and plants that customers truly appreciate, it is necessary not only to boost the quality of the productitself, but also to improve the operations and quality as well as each individualʼs ability to create a good plant in each process fromplanning up to delivery (sales, planning, design, procurement, manufacture, construction, and management).

Takuma Co., Ltd. has adopted the following Quality Policy in order to provide satisfying products that meetcustomer expectations and earn a high level of trust while continuously improving the effectiveness of its
quality management system.

Quality Policy“Manufacturing products that result in customer satisfaction”
Based on that Quality Policy and the three priority items described below, Takuma is working to improve the quality of its
products and services through a variety of initiatives that address every process, including in sales, planning, design,
procurement, manufacture, construction, and management.

Priority items
Creating value to earn customer satisfaction (ascertaining customer needs and making improvements based on past experience)
Carrying out risk management (addressing changes in the business environment and human error)● Implementing human resources management (implementing human resources development and ensuring skills are passed
down to younger employees)●●

Speciﬁc initiatives for improving quality■Improving organizational operations
As an organizational initiative thatʼs designed to boost product quality, we have each department establish quality
targets at the beginning of the year and then provide regular reports (twice a year) on progress towards achieving thosegoals at QM Committee meetings (quality management reviews).

■Internal quality audits

We carry out the following quality improvement initiatives:(1) Conducting a customer satisfaction survey every year
since FY2007

Customer satisfaction survey process(2) Applying customer feedback with regard to delivered
products and Takuma employees to quality and service

Decide where to conduct the questionnaire survey

The ﬁgure to the right illustrates how the survey is
Conduct the questionnaire survey
administered.
First, we administer questionnaires targeting customers
who had construction work done by asking them to assess theoverall experience after the work is completed, including theInvestigate the questionnaire results
nature of the work performed, suitability of delivered
Analyze problem factors and investigate
equipment, and the level of service provided by Takuma staff.
recurrence prevention countermeasures(if results are lower than our standard)
Next, the QM Committee calculates a score for each item
based on the survey results as well as a report andAnalyze praiseworthy factors(particularly for praiseworthy aspects)
explanation from the responsible department. The
committee then analyzes the resulting data.
If we ﬁnd a problem, for example an item receiving anevaluation score of less than 70 out of 100 or a score of 1
Apply recurrence prevention measures and(dissatisﬁed) or 2 (rather dissatisﬁed) on a 4-point scale, thepraiseworthy factors across the organization
QM Committee analyzes the cause of the problem andstudies measures to prevent recurrence based on interviews
with the department in question. We also evaluate aspects ofFollow up with recurrence prevention measures
our products and services that receive especially high praise
Follow up on resultsfrom customers and work to further enhance customer
satisfaction by combining problem areas and praiseworthy
areas and applying them horizontally across involved
departments at the company.
For customers targeted for problem analysis and consideration of preventive measures based on the survey results,
we also conduct a follow-up survey to discern whether those measures were reliably implemented and whether theirlevel of satisfaction has indeed improved.
With scores averaging higher than 80 points every year since its second year, the questionnaire demonstrates
the effectiveness of our initiatives.
In this way, we work to improve product and plant quality so that all customers are satisﬁed.

(Points)

Number of surveys■Quality control and process reviews
Quality control is an important measure that allows us to provide exceptional products and plants.
We take action (improvement measures) as outlined by a manual (standard) in the event a non-conforming product is
discovered, but even if an issue doesnʼt lead to a non-conforming product, we conduct a review as a preventive measure if
there are processes that could have caused the issue.
Furthermore, we actively offer training to new business partners and retraining (instruction) for existing business
partners to prevent defects in the products we purchase.

63

TAKUMA CSR Report 2018

(Surveys)

40
37

90

■Improving the employeesʼ individual operational skills
To improve employeesʼ individual operational skills, we have created an operational skill achievement checklist that
identiﬁes the skills required by personnel in each process for use in regular assessments, and we are reviewing the targets
we have chosen.

Average score

100

Consumer Issues

In addition to increasing the precision of operations by standardizing operating procedures in each departmentʼs processes,
we are improving operations as necessary by carrying out an internal quality audit of each department to verify the status ofquality management system operation.
Internal quality audits are carried out regularly by employees who have been certiﬁed as internal auditors after completinginternal quality auditor training seminars offered by instructors from an outside organization. At the training seminars,
employees master content ranging from basic knowledge about ISO 9001 to speciﬁc methods for conducting internal audits.

Customer satisfaction survey

83.5
80.2

80

85.5

85.8

87.7

88.2

86.8

85.6

30

82.3
27

26

27

27

25
23

73.4

70

85.9

18

18

20
19

16

60

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 (FY)

10

Number of questionnaire surveys and average score

TAKUMA CSR Report 201864

Participation in the Community / Contribution to Society

Participation in the Community
Reﬂecting their dedication to providing safe, reliable facilities that inspire peace of mind on the part of local residents,
Takuma and its Group companies work actively to disclose information in an appropriate manner, keep the areas aroundplants clean, participate in regional activities, and engage in exchanges with local residents. This section introduces some ofthose efforts.

■ Hitachinaka-Tokai High Trust Co., Ltd.
Hitachinaka-Tokai High Trust is working actively to participate in local activities
and to foster exchanges with local residents, including by participating incoordinated clean-up activities in the surrounding area.
During FY2017, the company sponsored and participated in the 66th Katsuta
Marathon, which was held in January 2018. The company has been involved with theevent every year since it was ﬁrst run.

■ Kurume High Trust Co., Ltd.
Kurume High Trust offers nature and environmental learning programs to ensurethat Kurumeʼs pleasant living environment can be passed on to the next generation,
primarily through the Miyanojin “Manabino” Biotope at its facility, which is designed
to serve as a space where visitors can learn about wildlife in the Kurume region.
During FY2017, the company offered three classes for area parents and theirchildren: a ﬁreﬂy-watching class entitled “Letʼs Go View Fireﬂies” in June, “The Great
Search for River Life” in August, and “The Great Search for Biotope Life” in November.

■ Suwako High Trust Co., Ltd.
In FY2017, Suwako High Trust welcomed more than 300 visitors to its facility inNovember when it hosted the “Eco-Poppo Community Festival,” which is named forthe site. Following a report on the operation of the plant, Okaya City Nagaike
Elementary Schoolʼs chorus performed. In addition, “Explore eco-Poppo” tours
offered attendees a chance to tour parts of the facility that are normally off-limits tovisitors, and there was also a simulation designed to let people see what itʼs like tooperate a waste crane.

■ Hokutan High Trust Co., Ltd.

■ Iwate-Kenpoku Clean Co., Ltd.
Iwate-Kenpoku Clean is committed to disclosing information about its operations
to the general public, including by publishing maintenance and management
records on its website and by regularly publishing a variety of information in the IKC
Newsletter.
During FY2017, the company continued to be involved in community service
activities, including by participating in the village of Kunoheʼs Village Sports andRecreation Festival in September and by picking up litter in the Esashika district andparticipating in the Kunohe Industry, Art, and Culture Festival in October.

65

TAKUMA CSR Report 2018

This page introduces some examples of Takumaʼs community service activities.

●Takuma Group coordinated cleanup activities
The Takuma Group orchestrates coordinated clean-up activities in the areas around its
worksites each year as a way for volunteers to beautify the environment and contribute tosociety. During FY2017, a total of 547 employees participated in two such activities. The
activities provided an opportunity for employees to think afresh about waste-related
issues and their connection to the community. Going forward, the Takuma Group willcontinue this initiative.

●Participation in the “Osaka Marathon ʻCleanupʼ Campaign”
In November 2017, volunteers from the former Plant Service Department (Osaka)
participated in the “Osaka Marathon ʻCleanupʼ Campaign,” a cleanup activity that is held
every year as part of the Osaka Marathon. The activity brought together organizational,
group, and individual volunteers to beautify public spaces throughout the city.

●Blood donation campaign
Takuma supports blood donation activities through the Japanese Red Cross
Society. During FY2017, a total of 167 donors participated in spring and fall
blood drives at the Head Ofﬁce and Harima Plant. Donors can simultaneously
register as bone marrow donors, and this year four employees did so. We plan
to continue this activity in the future.

●WFP fundraising activities
Takuma serves on the Board of Trustees of the Japan Association for theWorld Food Programme, the ofﬁcial supporting partner of the World Food
Programme in Japan. Each year, we display WFP posters at the entrances tocompany buildings and in cafeterias during a campaign that lasts from June
through August. The campaign serves both to increase employee interest in
the worldʼs food problems and to collect donations to address them.

Blood donation activities

WFP fundraising activities■ Contributions to NPOs●

Purchasing UNICEF Christmas cards

Takuma purchases UNICEF Christmas cards. A portion of the proceeds is used to fund UNICEF in their work to help
children around the world.
●

Donating calendars to a charity calendar market

Takuma donates unused calendars to a calendar market sponsored by the NPO “Nippon Volunteer Network Active inDisasters.” In FY2017, we donated about 100 calendars. The proceeds are used to provide aid for victims of natural
disasters and other crises.

■ Publications●

Publication of the Takuma Technical Review

Participation in theCommunity/
Contribution to Society

Hokutan High Trust provides space to foster exchanges with area residents tofacilitate environmental learning and awareness-raising, including by preparing toserve as an evacuation site in the event of a natural disaster.
During FY2017, the company participated in the Clean Park Hokutan Festival,
which was held in order to deepen the general publicʼs understanding of the facility
through events such as facility tours, nature experiences as part of an environmental
learning program, and craft lessons. Many visitors brought their children andparticipated in the craft lessons, where they made items such as candles, bamboo
crafts, and plastic bottle airplanes.

Contribution to Society

We publish the Takuma Technical Review twice a year to introduce technologies
that Takuma has developed. Contents in FY2017 included an explanation of how
sewage sludge incineration ash can be used effectively and reports on plant
equipment operation, trial demonstration results, and observations from a visit to an
environmental facility overseas. Abstracts are available on Takumaʼs website.
[Takuma top page > Technical Information > Technical Review]
http://www.takuma.co.jp/english/gijutu/gihou.html
TAKUMA CSR Report 201866

Financial Data
Trend in Principal Management Indicators and Other Financial Data
Fiscal year

(

109th

Millions of
yen

) (

110th

Millions of
yen

) (

111th

Millions of
yen

) (

112th

Millions of
yen

) (

113th

Millions of
yen

) (

114th

Millions of
yen

) (

Business performance during the ﬁscal year under review

114thThousands of
U.S. dollars

March 2013

March 2014

March 2015

March 2016

March 2017

March 2018

March 2018

Net sales¥ 96,384¥ 96,334¥ 103,875¥ 113,088¥ 116,309¥ 118,199$ 1,112,562

Operating income

¥

9,189

¥ 10,974¥ 10,030$

End of ﬁscal year

6,241

¥

8,424

¥

8,223

¥

Ordinary proﬁt

¥

7,168

¥

9,449

¥

9,116

¥

9,646

¥ 11,606

Proﬁt attributable toowners of parent

¥

6,145

¥

8,835

¥

8,030

¥

7,817

¥

8,551

¥

Comprehensive income

¥

6,712

¥

9,935

¥

9,398

¥

7,149

¥

Net assets¥ 34,653¥ 43,889¥ 52,516¥ 58,809

94,408¥ 10,670$

100,433

7,847$

73,865

9,937¥ 10,177$

95,797¥ 67,727¥ 76,726$

722,193

Total assets¥ 106,754¥ 108,520¥ 123,127¥ 132,614¥ 140,201¥ 151,862$ 1,429,420

Net assets per share（JPY or USD）

¥ 415.92¥ 527.50¥ 631.53¥ 708.18¥ 815.77¥ 924.25$

8.70

Net income per share（JPY or USD）

¥

74.32

¥ 106.86¥

94.55¥ 103.43

¥

94.93

$

0.89

-

-

-

-

-

-

-

Capital adequacy ratio (%)

32.2

40.2

42.4

44.1

48.1

50.3

50.3

Return on equity (%)

19.7

22.7

16.8

14.1

13.6

10.9

10.9

Price-to-earnings ratio

7.4

6.9

9.7

10.7

10.5

12.3

12.3

8,270

¥ 21,727

¥

6,728

¥

9,590

¥

5,141

$

48,388

(160)

¥

(445)

¥

143

¥

(328)

$

(3,088)

Diluted net income per share（JPY or USD）

97.12

¥

Cash ﬂows fromoperating activities¥ 17,465

Cash ﬂows frominvesting activities

¥

(59)

¥ (1,430)¥

Cash ﬂows fromﬁnancing activities¥ (8,887)¥ (5,867)¥ (3,707)¥ (2,900)¥ (1,787)¥ (1,670)$ (15,720)

End-of-year balance of
cash and cash equivalents¥ 26,005¥ 27,030¥ 45,008¥ 48,335¥ 57,132¥ 60,283

$

3,288

3,315

3,266

3,366

3,447

3,609

Number of employees¥

567,425)

The Japanese economy continued a gradual recovery during the consolidated ﬁscal year under review as corporate
earnings grew along with employment and incomes. Despite gradual economic expansion overseas, uncertainty remainedin the form of the UKʼs exit from the EU and actions by the administration in the U.S., clouding the outlook for the future.
Against this economic backdrop, the Takuma Group expects to see continued demand for its principal businesses
thanks to increased environmental awareness; progress in initiatives to prevent global warming and conserve resourcesand energy; planned replacement of, and updates to, outdated waste treatment facilities; and energy policies that are
favorable for biomass power facilities, for example in the form of feed-in tariﬀ programs for power.
During the consolidated ﬁscal year under review, we received orders for projects including construction of biomass
power facilities and sewage sludge-fueled power generation facilities in addition to construction of waste treatment
facilities, primary improvement work, and facility operation, maintenance, and management. As a result, order volume
totaled 177,116 million yen. Although volume fell 13,910 million yen (7.3%) from the previous consolidated ﬁscal year,
performance remained strong.
Sales rose 1,890 million yen (1.6%) from the previous consolidated ﬁscal year to 118,199 million yen on steadyprogress in construction projects such as waste treatment facilities and biomass power facilities. As a result, the backlog
totaled 273,060 million yen.
Operating income was 10,030 million yen, ordinary proﬁt was 10,670 million yen, and proﬁt attributable to owners ofparent was 7,847 million yen, down 944 million (8.6%), 936 million yen (8.1%), and 704 million yen (8.2%), respectively,from the previous consolidated ﬁscal year, when performance beneﬁted from cost reductions.
Performance by segment was as follows:(Millions of yen)Segment

Orders received

Sales amountOperating income

Backlog

Domestic Environment and Energy

148,892

90,075

10,488262,388

Overseas Environment and Energy

3,873

3,401

78

2,783

Package Boiler

17,696

17,321

1,015

3,350

Equipment and System Business

7,141

7,697

229

4,770

Sub-total

177,603

118,494

11,810273,292

（486）

（295）

（1,780）（231）

177,116

118,199

10,030273,060

Adjustment
Total

3,609
Financial Data

Note:
1. U.S. dollar amounts are shown solely for the convenience of readers and are translated at the rate of ¥106.24 to U.S.$1.00,
the exchange rate prevailing at March 31, 2018.
2. Ordinary proﬁt is a measure of accounting proﬁt that equals operating income plus other income minus other expenses,
except for extraordinary items under Japanese GAAP.

67

TAKUMA CSR Report 2018

TAKUMA CSR Report 201868

Financial Data
Consolidated Balance Sheets
TAKUMA CO., LTD. and Consolidated Subsidiaries
As of March 31, 2018 and 2017
Thousands of
U.S. dollars

Millions of yen
ASSETS

2018

2017

2018

¥ 60,864¥ 57,719$ 572,888

50,04944,716

471,092

380

391

3,578

2018

2017

2018

¥ 7,675¥ 7,675$ 72,242

470

468

4,422

34,91332,569328,625

234

344

2,204

979

931

9,214

36,12633,844340,043

281

2,532

2,644

13,592

7,935

127,936

Notes and accounts payable
Trade

Unconsolidated subsidiaries
and aﬃliated companies

Short-term loans payable
Current portion of long-term debt

Notes and accounts receivable:
Trade

LIABILITIES AND NET ASSETS
Current liabilities:

Current assets:
Cash and time deposits

Thousands of
U.S. dollars

Millions of yen

Unconsolidated subsidiaries
and aﬃliated companies

Other

381

242

3,590

Less allowance for doubtful accounts

(38)

(27)

(358)

Total

50,77245,322477,902

Total

Inventories

4,307

3,897

40,538

Accrued income taxes

Deferred tax assets

1,669

2,471

15,708Advances received

Other

1,372

766

12,917

Allowance for guarantees on completed work

86

177

808

110,175

1,119,953

Allowance for losses on sales contracts

373

3,578

3,508

Total current assets

118,984

Other

Other
Total current liabilities

Property, plant and equipment:

5,709

5,734

53,74164,312

61,943605,344

4,319

Land

3,011

3,018

28,344

Buildings and structures

12,287

12,225

115,647

Long-term liabilities:

Machinery, equipment, ｌease assets and construction in progress

10,653

11,119100,275

Long-term debt

459

929

25,951

26,362

244,266

Allowance for directorsʼ and executive oﬃcersʼ retirement beneﬁts

183

152

1,728

(17,450)(17,434)(164,245)

9,406

9,011

88,535

8,501

8,928

80,021

776

439

7,301

Total long-term liabilities

10,824

10,531

101,883

Total liabilities

75,136

72,474707,227

13,367

13,367

125,823

Less accumulated depreciation
Total property, plant and equipment
Investments and other assets:
Investment securities

Net deﬁned beneﬁt liability
Other

Contingent liabilities

16,885

13,161

158,932

5,015

4,950

47,204

Other

1,823

938

17,155Less allowance for doubtful accounts

(471)

(461)

(4,433)Issued:

3,768

3,768

35,46952,94946,258498,386

(235)

(234)

(2,214)

Total shareholders' equity

69,84963,159657,464

Unrealized gains on securities

7,161

4,886

67,407

(46)

(21)

(438)

2

6

22

Investments in:
Net assets:

Unconsolidated subsidiaries
and aﬃliated companies

Common stock
Authorized: 321,840,000 shares
83,000,000 shares

Total

6,367

5,427

59,926

Capital surplus

Deferred tax assets

785

2,210

7,388

Retained earnings

Other

340

300

3,200

Treasury stock, at cost

24,37721,098229,446

Total investments and other assets

331,385 shares in 2018 and
331,201 shares in 2017

Total assets¥ 151,862¥ 140,201$ 1,429,420

Deferred gains and losses on hedges
Foreign currency translation adjustments
Remeasurements of deﬁned beneﬁt plans(591)(5,265)

6,558

4,280

61,726

Non-controlling interests in consolidated subsidiaries

319

288

3,003

76,72667,727722,193¥ 151,862¥ 140,201$ 1,429,420

Total net assets
Total liabilities and net assets

69

TAKUMA CSR Report 2018

TAKUMA CSR Report 2018

Financial Data

(559)

Total accumulated other comprehensive income

70Financial Data
Consolidated Statements of Changes in Net Assets

TAKUMA CO., LTD. and Consolidated Subsidiaries
For the years ended Marcｈ 31, 2018 and 2017

Consolidated Statements of Operations

Commonstock

Tｈousands of
U.S. dollars

Millions of yen
Net sales
Cost of sales
Gross proﬁt
Selling, general and administrative expenses
Operating income

2018

2017

2018

¥ 118,199¥ 116,309$ 1,112,562

93,372

90,693878,877

24,827

25,616

233,685

14,797

14,642

139,277

10,03010,974

94,408
3,455

Otｈer income (expenses):
Interest and dividend income

367

337

Interest expense

(66)

(76)

(621)

Foreign currency excｈange loss

(157)

-

(1,478)

111

-

1,041

Gain on sales of investment securities

90

-

850

Loss on valuation of investment securities

(60)

-

(565)

Loss on disposal of property, plant and equipment

(44)

(51)

(419)

Equity in earnings of aﬃliated companies

461

280

4,344

Gain on liquidation of subsidiaries and associates

79

142

744

781

632

7,351

10,811

11,606

101,759

Current

1,352

2,859

12,731

Deferred

1,581

172

14,879

2,933

3,031

27,610

7,878

8,575

74,149

31

24

284

¥ 7,847¥ 8,551$ 73,865

Otｈer, net
Otｈer income (expenses), net
Income before income taxes
Income taxes:

Total income taxes
Proﬁt
Proﬁt attributable to non-controlling interests
in consolidated subsidiaries
Proﬁt attributable to owners of parent

U.S. dollars

Yen
Per sｈare:
Net income¥ 94.93¥ 103.43

-

-

-

16.00

13.00

0.15

Diluted net income
Casｈ dividends applicable to tｈe year

$ 0.89Consolidated Statements of Comprehensive Income

71

TAKUMA CSR Report 2018

Tｈousands of
U.S. dollars
2018$74,149

2,275
(3)
(4)
31
2,299
¥ 10,177

1,299
(29)
23
69
1,362
¥ 9,937

21,420
(30)
(36)
294
21,648$ 95,797¥ 10,12552¥ 9,942(5)$ 95,306
491

Retainedearnings

Total
shareholders'equityForeigncurrency
Unrealized Deferred gains translation
gains onand losses
adjustsecurities
on hedges
ments

Total
NonRemeasure- accumulated controllinginterests inotherments ofcomprehensive consolidated
deﬁnedsubsidiaries
incomebeneﬁt plans

Total
net
assetsFor the years ended March 31, 2018
Balance at the beginning of current period
Cash dividends (¥14.00 per share)
Proﬁt attributable to owners of parent
Purchase of treasury stock
Other changes during the year, net
Balance at the end of current period¥13,367¥13,367¥3,768¥3,768¥46,258(1,156)
7,847¥52,949¥(234)(1)¥(235)¥63,159(1,156)7,847(1)¥69,849

Millions of yen¥(21)¥4,886
(25)
2,275
¥(46)
¥7,161¥6(4)¥2¥(591)
32¥(559)¥4,2802,278¥6,558

¥288
31
¥319

¥67,727(1,156)
7,847
(1)
2,309
¥76,726

For the years ended March 31, 2017
Balance at the beginning of current period
Cash dividends (¥12.00 per share)
Proﬁt attributable to owners of parent
Change in scope of consolidation
Purchase of treasury stock
Other changes during the year, net
Balance at the end of current period¥13,367¥13,367¥3,768¥3,768¥38,754
(992)
8,551
(55)
¥46,258¥(232)(2)¥(234)¥55,657
(992)
8,551
(55)
(2)
¥63,159

Millions of yen¥(27)¥3,586
6
1,300
¥(21)
¥4,886

¥(11)
17
¥6

¥(660)
69¥(591)¥2,888
1,392¥4,280

¥264
24
¥288

¥58,809
(992)
8,551
(55)
(2)
1,416
¥67,727

For the years ended March 31, 2018
Balance at the beginning of current period
Cash dividends ($0.13 per share)
Proﬁt attributable to owners of parent
Purchase of treasury stock
Other changes during the year, net
Balance at the end of current period$125,823$125,823$35,469$35,469$435,415(10,894)
73,865$498,386$(2,212)(2)$(2,214)$594,495(10,894)
73,865(2)$657,464

Thousands of U.S. dollars$45,987$(196)
21,420(242)$67,407$(438)

$53
(31)
$22

$(5,559)294$(5,265)$40,285
21,441$61,726$2,711292$3,003$637,491(10,894)
73,865(2)
21,733$722,193

Consolidated Statements of Cash Flows
Cash ﬂows from operating activities:
Income before income taxes
Adjustments to reconcile income before income taxes
to net cash provided by operating activities:
Depreciation
Loss (gain) on sales of investment securities
Loss (gain) on liquidation of subsidiaries and associates
Loss (gain) on valuation of investment securities
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in allowance for bonuses
Increase (decrease) in allowance for losses on sales contracts
Increase (decrease) in net deﬁned beneﬁt liability
Interest and dividend income
Interest expense
Equity in losses (earnings) of aﬃliated companies
Net decrease (increase) in notes and accounts receivable and advances received
Decrease (increase) in inventories
Decrease (increase) in other current assets
Net increase (decrease) in notes and accounts payable and advance money
Increase (decrease) in other current liabilities
Other
SubtotalInterest and dividend received
Interest paid
Income taxes received (paid)
Net cash provided by operating activities
Cash ﬂows from investing activities:
Net decrease (increase) in time deposits
Purchase of property, plant and equipment
Purchase of intangible ﬁxed assets
Purchase of investment securities
Sale of investment securities
Disbursement for loans receivableCollection of loans receivable
Other
Net cash provided by (used in) investing activities
Cash ﬂows from ﬁnancing activities:
Net increase (decrease) in short-term bank loans
Payment of long-term debt
Purchase of treasury stock
Payment of cash dividends
Dividends paid to non-controlling interests
Other
Net cash used in ﬁnancing activities
Eﬀect of exchange rate changes on cash and cash equivalents
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Increase in cash and cash equivalents from newly consolidated subsidiary
Cash and cash equivalents at end of year

2018

Millions of yen

2017

Tｈousands of
U.S. dollars
2018¥ 10,811¥ 11,606$ 101,759

790
(111)
(90)
60
20
307
(3,205)
441
(367)
66
(461)
200
(387)
(305)
1,959
(426)
(798)
8,504
456
(66)
(3,753)
5,141

851
0
1
(18)
182
(1,586)
445
(337)
76
(280)
463
148
(25)
(2,143)
1,489
148
11,020405(76)(1,759)
9,590

7,433
(1,041)
(850)
565
191
2,892
(30,168)
4,152(3,455)621(4,344)
1,884(3,640)(2,875)
18,438(4,007)(7,506)80,0494,293(625)(35,329)
48,388

4
(343)
(125)
(561)
230
(151)
550
68
(328)

3
(575)
(65)
(473)
13
(171)
1,328
83
143

40
(3,231)(1,174)(5,277)2,161(1,423)
5,175
641(3,088)(468)(1)(1,157)(21)(23)(1,670)

(75)
(673)
(2)
(992)
(17)
(28)
(1,787)(4,403)(2)(10,894)
(199)
(222)
(15,720)

8
3,151
57,132¥ 60,283

15
7,961
48,335836¥ 57,132

78
29,658537,767$ 567,425

TAKUMA CSR Report 2018

Financial Data

Proﬁt
Other comprehensive income：Unrealized gains on securities
Deferred gains and losses on hedges
Foreign currency translation adjustments
Remeasurements of deﬁned beneﬁt plans
Total other comprehensive income
Comprehensive income
Comprehensive income attributed to:
Owners of the parent
Non-controlling interests

Millions of yen
2018
2017
¥ 7,878¥8,575

CapitalsurplusTreasurystock,
at cost72

Outside Expert Opinion
Outside Expert Opinion

Response to the Outside Expert Opinion

Takuma Corporate Profile & CSR Report 2017
Questionnaire Survey Results
Survey period: July 2017 to June 2018
Number of respondents: 961

Q1 Did you understand the activities of our company?
I couldnʼt understand very well. 0.4% / I couldnʼt understand. 0%

Koji Tanaka
Kazuhiko Takano
Professor, Ph.D. in Law (LL.D.)
Graduate School and Faculty of Safety Science, Kansai University
Senior Director
Japan Society for Business Ethics Study
Senior Researcher
Business Ethics Research Center

1. Features of the Takuma Groupʼsapproach to CSR management

73

TAKUMA CSR Report 2018assessing the penetration of compliance and CSR education
year by year, the company is working to improve associatedmeasures.
I believe that the Takuma Groupʼs CSR activities are
distinguished by extensive employee education andcommunication. I also believe that companies can address
most of the risks they face by improving employee
awareness and cultivating an organizational culture that ischaracterized by free and open communication. Goingforward, I hope to see Takuma continue activities such asthese.

2. Areas where Takuma can do more
Currently, experts are predicting composite natural
disasters with far-reaching regional consequences such as aNankai megathrust earthquake. The Takuma Group has
formulated a business continuity plan (BCP) to address therisks posed by such events. I believe that the effectivenessof the BCP can be enhanced if the company conducts
regular crisis simulation training going forward in which itpractices implementing its BCP and makes improvements
to those aspects of the plan that prove problematic.
In addition, the Takuma Groupʼs 12th Medium-Term
Management Plan calls for the company to actively develop
its businesses overseas. Global companies must take on
signiﬁcant risks due to high civil penalties and ﬁnes often
levied overseas in areas such as data protection, bribery
prohibition, and antitrust law as well as legal systems that
apply across borders. By adding these topics to its alreadyextensive employee education programs, I believe Takuma
will be able to develop into an organization that is evenmore capable of developing its businesses in the future.
I believe that the Takuma Group is currently
implementing a sophisticated program of compliance andCSR activities. Going forward, I expect to see the Groupenhance its sustainability so that it can develop evenfurther by exploring how to adjust its compliance and CSR
activities to its expanding businesses and social changes.

I would like to thank Professor Takano of Kansai
University for offering his valuable insights on the CSR
Report 2018.
In compiling this report, we have worked to offer
stakeholders an easy-to-understand introduction to avariety of activities carried out by the Takuma Group withthe goal of resolving social issues and increasing corporate
value by achieving sustained growth as well as to theGroupʼs 12th Medium-Term Management Plan, which began
this year, and we have focused on inviting involved parties
to express their thoughts on related subjects in their own
words.
Iʼd like to express our gratitude to Professor Takano for his
evaluation of the Groupʼs CSR management initiatives in“1. Features of the Takuma Groupʼs approach to CSR
management.” An old expression says that it takes a decade
to build a castle, but only one day to destroy it. In thatspirit, there is no shortage of scandals that threaten toundermine the trust that organizations have built up overtime. Corporate governance, risk management, andcompliance together provide a foundation for managementthat is a prerequisite for robust corporate activities. Goingforward, we will pursue initiatives in these areas with asense of urgency both to live up to stakeholdersʼ
expectations and requirements and to achieve sustainablegrowth for the Group.
Professor Takano also offered valuable insights withregard to enhancing the business continuity plan (BCP)
and addressing signiﬁcant risks in our global businesses in“2. Areas where Takuma can do more.” We will strive tobuild tenacious business and management foundations
that can withstand future environmental changes while
cultivating an ESG- and SDG-driven perspective.
We value Professor Takanoʼs observations and take them
seriously, and I would request stakeholdersʼ continued
support and encouragement as we work to practice CSR
management and enhance our CSR Report.

●

Editorial Policy

We have prepared this document as a CSR
Report that details our CSR activities.
●

Publisher and Contact for Inquiries

CSR Department, Compliance & CSR Promotion
Division
TEL: +81-6-6483-2673
FAX: +81-6-6483-2620

I understood.
57%

Q2 What is your level of satisfaction regarding this Report?
(1) Volume of information
Too much 3%

Entirely insufficient 0% /Somewhat insufficient 1%(2) Design
Very bad 0% / Poor 0.4%
Average23%

Somewhatexcessive
23%

Satisfied73%(3) Quality of information(4) Readability

Unsatisfactory 0% / Somewhat unsatisfactory 0.4%
Average
12%
Mostlysatisfied
37%

Satisfied47%

Mostlysatisfied
29%

Satisfied50%

Difficult to read 0.3%
Somewhat difficult
to read 2%
Average
21%
Satisfied
Mostlysatisfied
36%

41%

Q3 Which items were you interested in? (Select up to 3.)
48%
43%

Business Development
Message from Top Management
Takuma Group 11th Medium-Term
Management Plan ̶ An Overview
Feature: Striving to Coexist with Local
Communities
Business Summary

34%
33%
22%
14%

CSR Activities for the Future

9%
9%
9%
7%
6%
6%
4%
4%
3%
3%
2%
2%
2%

The Environment
Corporate Information
Human Rights and Labor Practices
Financial Data
Outside Expert Opinion
Contribution to SocietyGroup Company CSR Activities
Group Company CSR Topics
Consumer Issues
The Takuma Group Network
Corporate GovernanceParticipation in the Community
Fair Business Practices

0%

10%

20%

30%

40%

50%

60%

Data Collection Period
From April 1, 2017, to March 31, 2018, in principle.
In addition, some activities in FY2018 are included.

●

CoverageThis report applies to Takuma Co., Ltd. and its afﬁliates in principle.

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Time of Issue
Current issue: July 2018
Next issue:
Scheduled for July 2019
Last issue:
July 2017●

Outside Expert
OpinionI believe that the Takuma Groupʼs business plays animportant role in supporting Japanese industry, particularly
with regard to a wide variety of plants, and there is strong
need on the part of society for the company to continue tooperate. I conduct research into CSR as a specialist in thevarious management structures that provide a basis forcorporate sustainability, including corporate governance,risk management, and compliance. I reviewed the Takuma
CSR Report 2018 from that perspective, and Iʼd like tointroduce some of its features as I see them.
The ﬁrst feature is corporate governance. At its regular
general meeting of shareholders in June 2016, the company
transitioned to a corporate structure with an auditing
committee, an organization that was newly established in
the revised Companies Act, and it acted voluntarily toestablish a Human Resources & Remuneration Advisory
Committee. This decision was a pioneering one that waspresumably intended as an institutional design change toenhance the oversight function of the Board of Directors
and to facilitate free and vigorous discussion.
The second feature is compliance structures. Takuma hasestablished a Compliance & CSR Promotion Organization,and the Group as a whole practices the PDCA cycle formanaging major risks. Members of the organization are
responsible for education and awareness-raising in theirrespective departments, and they report regularly back to
the division on the progress of those efforts. On the Grouplevel, the Takuma Group Coordinating Committee forCompliance & CSR Promotion facilitates awareness-raising
activities such as employee education. It is apparent thatthe committee has identiﬁed issues such as the
Antimonopoly Act, export control, and harassment as
signiﬁcant risks, and that itʼs working to spread awarenessthrough frequent employee education programs.
The third feature is the cycle used to assess the extent towhich compliance and CSR awareness have spreadthroughout the organization and to improve that level ofpenetration. Takuma began conducting a CSR Awareness
Survey in 2008, and it expanded the scope of the survey toinclude Group companies in 2013. By quantitatively

I basicallyunderstood.
43%

Director & Executive Ofﬁcer
Executive Manager
Compliance &CSR Promotion Division &Corporate Service Division

TAKUMA CSR Report 201874

T A K UM A CSR R epo rt 2018

2-2-33 Kinrakuji-cho, Amagasaki, Hyogo 660-0806, Japan
Website: http://www.takuma.co.jp/english/

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CSR Report2018