Corporate Profile & CSR Report 2017

Tec
e
u
l
Va

hnology, Value People, Value the EarthMessage fromTop Management

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

Business Development

23
27
31
33
35

CSR Initiatives

Using advanced incineration technologies, we can eventreat toxic substances suitably and we are supporting theenvironmental protection efforts of industry.

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

We provide comfortable, clean environments to customers
in the semiconductor industry as well as locations such asuniversities, research institutions, and hospitals.

60
61
63
63
65

75

TAKUMA CSR REPORT 2017

Outside Expert Opinion /2016 Questionnaire
Survey Results

76

Financial
Data

TAKUMA CSR REPORT 2017

59

Participation in theCommunity /Contribution to Society

1

55
56
57

Consumer Issues

Outside Expert Opinion
Response to the Outside Expert Opinion /Takuma Corporate Profile & CSR Report 2016
Questionnaire Survey Results

51
53

Fair Business
Practices

Financial Data
Outside Expert Opinion /Takuma Corporate Profile & CSR Report 2016
Questionnaire Survey Results

46
47
48
49

Human Rights andLabor Practices The Environment

Air-conditioning equipment andclean systems

45

Corporate
Governance

Water treatment plants

39
41
43

CSR Activities
for the Future

Industrial waste treatment plants

CSR Activities for the Future
CSR Activities for the FutureGroup Company CSR Topics
Group Company CSR Activities
Corporate GovernanceCorporate GovernanceInternal Control /Compliance & CSR Promotion Structure
Risk Management Structure
Business Continuity Plan (BCP) / IR Activities
Directors and Executive Officers
Human Rights and Labor Practices
Respect for Human Rights and the Abolitionof Discrimination /Working with Our Employees
Efforts for Occupational Safety and Health
The Environment
Basic Environmental Policy /Environmental Management
Takuma’s CO2 Reduction Technologies
Environmental Reporting
Fair Business Practices
Compliance/CSR Promotion Education /Compliance Measures
CSR Awareness Survey /In-house Reporting System /Material Procurement Policy
Consumer Issues
Activities Involving Product Quality
Participation in the Community
Contribution to Society

Business
Development

1. Activities of Our Municipal Solid Waste
Treatment Plant Business
2. Activities of Our Energy Plant Business3. Activities of Our Water Treatment Plant
Business
4. Activities of Our Overseas Business
5. Main Recent Projects

Feature: Striving
to Coexist with
Local Communities

Takuma’s core technologies are utilized in various types ofboilers such as biomass fuel boilers as well as total
systems.

17
19
21

Business
Summary

We support the realization of a recycling-oriented society
using advanced waste treatment technologies that meetthe needs of local communities.

General-purpose boilers

6
9
11
13

The Takuma
Group Network

Energy plants

DBO projects① Kurume High Trust Co., Ltd.
② Hokutan High Trust Co., Ltd.
③ Suwako High Trust Co., Ltd.

3

Corporate
Information

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

Takuma develops a variety of technologies around a core set of combustion technologies, including
waste treatment and water treatment components.
Our businesses in the environmental and energy fields are dedicated to resolving environmental
issues such as global warming and to helping achieve a recycling-oriented society.
At Takuma, our mission is to pursue technologies for coexisting in harmony with nature in order thathumankind and the Earth might enjoy a truly rich and fulfilling future.

Municipal solid waste treatment
plantsContents

Takuma Group 11th
Medium-Term Management
Plan — An Overview

Takuma Provides New Value for Society in the Environ mental and Energy Fields.

2Message fromTop Management

Message from Top Management
Achieving sustained growth by resolving social issues andincreasing corporate value through CSR management■ Business policies
Takuma’s Management Principles state that the company will strive for “social contribution, corporate valueenhancement, long-term corporate development, and thesatisfaction of all stakeholders by providing goods andservices that are needed and recognized as valuable insociety.”
In keeping with this philosophy, we have identified two
goals: first, continuing to play an essential role for society
as a leading company in the utilization of renewable energy
and in the field of environmental protection; and second,of achieving ordinary profit of JPY 10.0 billion in FY2020 as
our target level of ordinary profit. Similarly, we haveembraced a corporate vision of building structures capableof earning JPY 10.0 billion in profit or more in a stable andconsistent manner even as the business environment
continues to undergo dramatic change, and we are
pursuing a series of business activities in pursuit of thatvision. We will achieve this vision not through thestandalone efforts of the company, but as the result of the
combined capabilities of the entire Takuma Group. To that
end, we have adopted a basic management policy of
maximizing profits in our consolidated financial accounting
and of increasing corporate value.
The Group will work diligently to implement the 11th
Medium-Term Management Plan (FY2015 to FY2017) in aneffort to build on past results to enhance its business sothat it can achieve sustained growth, both in terms of
quality and quantity.

dioxide emissions through high-efficiency generation ofelectricity using biomass promise to make a significant
contribution to the resolution of social issues, and I believethat they will also serve to facilitate the growth and development of the Group’s businesses.

■ Implementing CSR management andachieving sustained growth

Companies must continuously build mechanisms forcreating new value while maintaining good, long-term
relationships with a variety of stakeholders, including
customers, business partners, employees, shareholders,and investors. To do so, it is essential to demonstrate anability to act in a way that earns stakeholders’ trust. To that
end, we will continue to pursue management activities in asocially just and ethical manner, to take into accountenvironmental and human rights considerations, and toadvance corporate governance, compliance, and risk
management, which comprise the foundation on which
the company’s activities are carried out.
The Takuma Group has established its Company Motto,
Management Principles, Takuma Group Ethics Charter, andTakuma Group Code of Conduct as the foundation for CSR

management, and we strive to put them into practice. We
believe that we can resolve social issues, increase corporate
value, and achieve sustained growth by cultivating ahealthy and robust corporate culture and ensuring that theGroup’s executives and employees each maintain a highlevel of CSR awareness and incorporate that awareness into
their business activities.
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 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
Group’s 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 2017■ Business environment
We expect to see continued demand for our principal
businesses thanks to increased environmental awareness;
progress in initiatives to prevent global warming andconserve resources and energy; planned replacement of,and updates to, outdated facilities operated on behalf of
local governments; and energy policies that incentivize
biomass-fueled power plants, for example feed-in-tariff
programs for power generated using renewable energy.
In addition, adoption of the Paris Agreement at theUnited Nations Climate Change Conference (COP 21) andof Sustainable Development Goals (SDGs) at the United
Nations Sustainable Development Summit provides milestones along the path to a sustainable society. Takuma’s
technologies for processing waste and reducing carbon

3

TAKUMA CSR REPORT 2017

Takaaki Kato
President and CEO
Takuma Co., Ltd.

The Takuma Group has joined the United Nations Global Compact (UNGC), which is a voluntary effort to create a
global framework for implementing sustainable growth by having companies and groups exercise responsible andcreative leadership while acting as good members of society.
Reference: UN Global Compact http://www.unglobalcompact.org/
Network JapanWE SUPPORTTAKUMA CSR REPORT 2017

4

Company Motto

Value Technology, Value People, Value the Earth

Takuma Group 11th
Medium-Term Management
Plan — An Overview

Takuma Group 11th Medium-Term Management Plan — An Overview
1 Business Directions① Positioning of the 11th Medium-Term Management Plan

Management Principles
Takuma will strive for social contribution, corporate value enhancement, long-term corporate
development and the satisfaction of all stakeholders by providing goods and services that areneeded 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 theconcept of Corporate 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).

Achieve sustained growth by targeting growth markets while maintaining and expanding our market position in the EPC
business and using businesses that generate base profits as a foundation for growth.
∗ EPC: Plant engineering, procurement, and construction
Profitability throughselection and concentrationof resources

Reinforcement of businessfoundation for stability
and profitability

Achieving sustained
growth (11th Medium-Term
Management Plan)

FY2009 – FY2011

FY2012 – FY2014

FY2015 – FY2017② Principal business domains
Enhance our businesses in terms of both quantity and quality by expanding on-site maintenance and management service,competitive product development, and regional reach around the existing EPC business.

Waste Treatment Plant Business1. 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 andregulations and committing 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 thesocial order and security of civil 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 highacclaim and confidence from our customers.
6. We shall strive to disclose corporate information to shareholders and investors through investor relations (IR) andother activities on a timely 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.

5Harmony 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 entertainment andgift-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

TAKUMA CSR REPORT 2017

O&M and equipment
sale market
Existing
EPC market

O&M

Operation & Maintenance∗ DBO:

BiogasplantsWaste
treatment
plantsDBO

Design Build Operate

Large and Multifuelfired boilers

Water treatment
plants

Maintenance(Adding FIT customers)

Indonesia,
Vietnam, etc.

Boiler plants(Japan, Thailand)
Package boilers

Sand filtration(Japan)Southeast Asia
Equipment
renewal demand
Sludge-fueled power
generation (Japan)

Water Treatment Plant Business

Maintenanceand chemicals

Eastern Europe

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

Package Boiler Business2 Policies and Perspectives of the 11th Medium-Term Management Plan
Policies

Takuma Group Code of Conduct

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

Overseas
markets∗ O&M:

Boiler Plant Business

New products,
peripheral markets,
overseas markets

Takuma Group Ethics Charter
Takuma and the Takuma Group companies believe that it is essential for the sound development of the group that 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.

FY2018 and onwards❶ Maintenance and expansion of market position in the EPC
business❷ Expansion of businesses that generate base profits❸ Initiatives that target growth markets❹ Further enhancement of the company’s financial strength❺ Human resources management❻ Cultivation of a robust organizational culture

Perspectives❶ Creation of customer value❷ Ongoing innovation❸ Accommodation of environmental changes and risk
management

Achieving sustained growth

Creation ofcustomer value
OngoingInnovation

Accommodation ofenvironmental
changes and risk
managementM
mar aintenance and expansion of
ket position in the EPC business
Leveraging
thecompany’s
totalcapabilities

Expansiothat ge n of businesses
nerate base profits

Initiatives th
at target
growth markets

Further enhancement of thecompany’s fi
nancial strength

Management
base

Human resources management

Cultivation of a robust
organizational culture

TAKUMA CSR REPORT 20176

3 Financial Targets (Consolidated)(Billion JPY)

We are currently striving to build structures capable ofconsistently earning an ordinary profit of JPY 10 billion evenas the business environment undergoes a process ofsignificant change in keeping with our corporate vision of“aiming 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”
and our target of achieving ordinary profit of JPY 10 billion
in FY2020.
To facilitate the achievement of the goals outlined in thisplan, we will undertake initiatives to realize sustained
growth in accordance with the policies while seeking tosteadily improve our business in terms of both quantity andquality. To that end, we have established the financial
targets described below.

400

40

300

30

200

20

100

10

0

9th Plan
Order Value(left scale)10th Plan

11th Plan

Sales(left scale)0

Ordinary Profit(right scale)(Billion JPY)

9th Medium-Term Management Plan results 10th Medium-Term Management Plan results

Management Plan targets

2010

2011

Total

2012

2013

2014

Total

FY2015 – FY2017

Order Value

70.5

97.0

90.4

257.9

109.2

148.0

113.7

371.0

(3-year cumulative total)

Sales

95.1

89.1

101.0

285.3

96.3

96.3

103.8

296.5

(3-year cumulative total)

Ordinary Profit

2.0

4.4

7.3

13.7

7.1

9.4

9.1

25.7

(3-year cumulative total)

400 Billion JPY

360 Billion JPY
27 Billion JPY

4 Core Business Units and Emphasis of Future Activities
Municipal Solid Waste Treatment Plant Business

Water Treatment Plant BusinessBusiness Environment

Business Environment●

As facilities age, there is ongoing robust demand for renewal
and service life elongation.
● DBO project volume is growing, and there is also growth in
O&M services for existing facilities.

●

Emphasis of Future Activities

Emphasis of Future Activities

Develop the foundation of the business and enhance ouroperational capabilities.
● Further strengthen initiatives to prolong the service life offacilities.

●

Secure our position in the market for tapping the energy
potential of sewage sludge.
● Expand our share in the advanced-treatment sand filtration
market.

Boiler Plant Business (Overseas)

Business Environment

Business Environment

Demand for biomass power plants remains steady.
● The number of plants targeted for maintenance is increasing
as facilities are completed and transferred to customers.

●

Emphasis of Future Activities

Demand for biomass power plants in Thailand and surrounding countries remains robust.

Emphasis of Future Activities

Secure more orders for biomass power plants (secure market
position).
● Enhance maintenance service and capabilities.

Maintain and enhance functionality for carrying out overseas
projects, including enhancement of the functions of our
local subsidiary (Siam Takuma).
● Enhance price competitiveness and differentiated products.

Waste Treatment Plant Business (Overseas)

Package Boiler BusinessBusiness Environment

Business Environment●●

Plans to build Energy from Waste plants are underway invarious regions worldwide against the backdrop of ongoingurbanization and increasing environmental awareness.

Emphasis of Future Activities
Develop schemes for entering the market that are suited toeach country and region.
● Develop structures to facilitate market entry.
●

7

There is a growing need to recover energy from sewage
sludge.
● Renewal demand and service life elongation demand areincreasing as facilities age.

Boiler Plant Business (Japan)●

TAKUMA CSR REPORT 2017●

The domestic market has matured, and it is not reasonable
to expect a significant recovery of demand.
● The need for boilers is increasing overseas, particularly indeveloping nations.
●

Emphasis of Future Activities●●

Corporate Information

11th Medium-Term

2009

●

Corporate Profile

Expand our overseas business.
Enhance our technologies and production capacity.

The Takuma Group Network
Business Summary

Corporate Information
Company outline
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, 2017)
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 andfeed-water / drainage sanitation equipment and facilities
The design, construction and superintendence of civil, architecture and other works
Number of employees (non-consolidated): 824 (as of March 31, 2017)
Number of employees (consolidated):
3,447 (as of March 31, 2017)

Permits and registrations

Internal Audit Dept.
Compliance & CSR Promotion Div.

Corp. Planning & Administration Div.

Board ofDirectors

President

Audit & Supervisory
Committee
Audit & Supervisory
Committee’s Office

Head Office, branch offices and other business offices
Construction license (Minister of Land, Infrastructure, Transport and Tourism license, Special 27-6129)
Construction consultant registration (Minister of Land, Infrastructure, Transport and Tourism registration, Construction 26-10202)
First-class architect office registration (01A02903)
ISO 9001 quality management system certification
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 andIndustry)
Permission to manufacture boilers and pressure vessels, permission to manufacture cranes
JQA-1952
JQA-EM0313
ISO 9001
ISO 14001(Ministry of Health, Labour and Welfare)certification
certification
Manufacture of specific high-pressure gas facilities (Ministry of Economy, Trade and Industry)
Head Office, Osaka Office,Harima FactoryTokyo Branch, Chubu Branch,
Manufacture of refrigerators (Governor of Hyogo Prefecture)

Ordinary income[Non-consolidated](Million JPY)

(Million JPY)

120,000

Corporate Service Div.

Committee of
Executive Officers

Net sales

80,00012,00064,2888,022

72,445 7,406

73,327

8,937

4,000

0

Administration Div.

0

2014

Environmental Plant Div.
120,000

103,874

International Operations Div.
Engineering Group

2016

113,088
9,116(Million JPY)

116,309 11,605

80,0008,000

40,0004,000Management Center
0

0

2014

Technology Center

2015

Engineering Center

Domestic Environment andEnergyOverseas Environment andEnergyConstruction Center

Package Boiler

Project Center

2016

(FY)

5.7%
14.7%
1.9%

77.7%

Equipment and System
Business

Harima Factory

Net sales composition ratios (FY2016)

Sales

1949

1958

1975

1999

2006

2010

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

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

Bulk production began on “vacotinheater,” the world’s firstvacuum-type hot water heater

ISO14001 certification obtainedfor our Harima Factory

1949

The venerable Tsunekichi
Takuma commended as one of
the ten great inventors ofJapan during the Meiji andTaisho periods (1868–1926)

Company listed on the
Osaka and Tokyo stock
exchanges

The “ComplianceDeclaration” instituted
The “Takuma Group
Ethics Charter”
instituted
Takuma participatesin the UN Global
Compact

Energy from Waste
plant delivered inEurope (U.K.)

1930

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

1953

1986

Vacotin heater

The first overseas delivery of a waste
treatment facility completed (U.S.A.)
1992

1972

Japan’s first waste
incineration plantCompany renamed Takuma
Co., Ltd.

The venerable
Tsunekichi Takuma

2004

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

1963Japan’s first waste incineration
plant delivered
Sewerage treatment facility
delivered

Head Office moved to
Osaka’s Kita-ku District

New Company Motto instituted:“Value Technology, Value People,
Value the Earth”
1995
995

Amagasaki Head Office Building
completed

2005

2007
00

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.

Takuma’s first “CSR
Report” issued

Hundreds ofmillions JPY

(

)

1,500

2013

Operation of the
Takuma Solar
Power Plant began

1,000

2005

The “Takuma Environmental
Policy” instituted
The “Personal Information
Protection Policy” instituted

1998

Japan’s largest Energy from
Waste plant delivered(Tokyo Shinkoto Waste
Treatment Plant
capacity: 1,800 tons per day)

1997

ISO9001 certification obtained

500

Amagasaki Factory

1970

1942

Waste Management and Public
Cleansing Act and Water
Pollution Control Act enacted

Operation began at
Harima Factory

Harima Factory under construction
1938 1939 1940 1941 1942 1943 1944 1945 1946 1947 1948 1949 1950 1951 1952 1953 1954 1955 1956 1957 1958 1959 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977

TAKUMA CSR REPORT 2017

12,000

9,646

1912

Takuma Boiler ManufacturingCo., Ltd. founded
Company Motto instituted:“Service to the nation throughboiler manufacturing”(FY)[Consolidated](Million JPY)

Energy Plant Div.

2015

Kyushu Branch, Hokkaido Branchand Harima Factory

The History of Takuma

1938

8,000

40,000

Corporate Marketing Group

Corporate
Information

Name:
Head office location:

9

Balance sheet overview andnet sales composition ratios

Corporate structure (as of June 28, 2017)

1993

1999

2012

Basic Environment
Act enacted

Act on Special
Measures against
Dioxins enacted

Feed-in tariff (FIT)
program launched tofacilitate fixed-costpurchases ofrenewable energy∗ Consolidated accounting introduced in FY1990

1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

(FY)

TAKUMA CSR REPORT 201710

The Takuma Group Network
3
4 9

19

(as of April 1, 2017)27

11
10 6 17
7 22

21

14

24

25
29

12

2

1 Nippon Thermoener Co., Ltd.

4

5

2

6

7

3

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

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/

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/

3 Hokkaido Sanitary Maintenance Co., Ltd.

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.

1

Head Office

2-2-33 Kinrakuji-cho, Amagasaki, Hyogo
660-0806, Japan
TEL +81-6-6483-2609 FAX +81-6-6483-2751
http://www.takuma.co.jp
2

Osaka Office

Daiken Bldg., 2-3-20 Tsukamoto, Yodogawa-ku,
Osaka 532-0026, Japan
TEL +81-6-6100-3301 FAX +81-6-6100-3302

6

Chubu Branch

Daitokai Bldg., 3-22-8, Meieki, Nakamura-ku,
Nagoya, Aichi 450-0002, Japan
TEL +81-52-571-5211 FAX +81-52-581-3005
7

Kyushu Branch

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,
3 Tokyo Branch
Nomura Higashi-nihonbashi Bldg., 1-1-7 Higashi- Okinawa 901-2224, Japan
TEL +81-98-898-6650 FAX +81-98-898-6657
nihonbashi, Chuo-ku, Tokyo 103-0004, Japan
TEL +81-3-5822-7800 FAX +81-3-5822-7888 9 Harima Factory
1-2-1 Shinhama, Arai-cho, Takasago, Hyogo
4 Hokkaido Branch676-8540, Japan
Daigo Bldg., 5-11, Ohdori Nishi, Chuo-ku,
TEL +81-79-443-6511 FAX +81-79-443-6599
Sapporo, Hokkaido 060-0042, Japan
TEL +81-11-221-4106 FAX +81-11-241-0523 10 Taipei Branch
7F., No.16, Lane 35, Jihu Rd., Neihu District,
5 Tohoku Branch
NMF Sendai Aoba-dori Bldg., 2-1-2 Ichibancho, Taipei 114-92, Taiwan
Aoba-ku, Sendai, Miyagi 980-0811, Japan
TEL +886-2-8752-3838 FAX +886-2-2656-0584
TEL +81-22-222-3042 FAX +81-22-225-6759

11

TAKUMA CSR REPORT 2017

Overseas group companies
1

Taiden Environtech Co., Ltd. (Taiwan)

Maintenance of waste treatment and otherfacilities
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. (Thailand)

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 +66-2-4385616 FAX +66-2-4400114

20 Suwako 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 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

8

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/

4 Takuma Technos Hokkaido Co., Ltd.

Takuma’s business offices

28

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.

1

13

5

1 2

18

Group companies in Japan

9

8

20

10 1

23
26 15

The Takuma
Group Network

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/
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/
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/

11 Campo Recycle Plaza Co., Ltd.

12 Nagaizumi 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/
13 Fujisawa High Trust Co., Ltd.

Operation and maintenance management of municipal
solid waste treatment facilities
2168 Ishikawa, Fujisawa, Kanagawa 252-0815, Japan
TEL +81-466-45-5411 FAX +81-466-45-5454
14 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/
15 Hitachinaka-Tokai High Trust Co., Ltd.

Operation and maintenance management of municipal
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/
16 Anan High Trust Co., Ltd.

Operation and maintenance management of municipal
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/
17 Takuma Energy Co., Ltd.

8 Dan-Takuma Technologies Inc.

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

9 Kyoritsu Setsubi 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/

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/
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

18 Kurume High Trust Co., Ltd.

19 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://www.hokutan-ht.com/

21 Energy Mate Co., Ltd.

22 Takuma Plant Service Co., Ltd.

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/index.html
23 Biopower Katsuta Co., Ltd.

Wood biomass power generation business
1974-1 Koya, Hitachinaka, Ibaraki 312-0002,
Japan
TEL +81-29-270-3341 FAX +81-29-270-3343
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/
26 Katsuta Co., Ltd.

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

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
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 201712

Business Summary
Environmental and energy business
Municipal solid waste treatment plants

Industrial waste treatment plants

We support the realization of a recycling-oriented society using advanced waste treatment technologies that meet theneeds of local communities.

Using advanced incineration technologies, we can even treat toxic substances suitably and we are supporting theenvironmental protection efforts of industry.

Energy from Waste plant
Pyrolysis gasification and melting plant● Resource recycling and collection 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 plant●

Business
Summary

Energy from Waste plant

Bulky garbage crushing plantIndustrial waste treatment plant

Energy plants

Water treatment plants

Takuma’s core technologies are utilized in various types of boilers, starting with biomass boilers, as well as total systems.

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

Biomass boiler
Fossil fuel boiler● Waste heat boiler● Power plant●

Sewage and wastewater treatment
plant● Various types of advanced sewage
treatment plant● Sludge treatment plant● Sewage sludge-fueled power plant● Plant to process water that
infiltrates final disposal sites●●

Biomass power generation boiler

Waste heat boiler

Upflow moving-bed filtration system

Sewage sludge-fueled power plant

Package boiler

Equipment and systems business

General-purpose boilers

Air-conditioning equipment and clean systems

As the convergence of Takuma’s 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.

●

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

●

●

●

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

13

Plant that generates power from industrial waste
and provides heat to a plantation

TAKUMA CSR REPORT 2017

Vacotin heater

Building equipment
Air-conditioning equipment● Cleaning and drying devices● Clean room
● Clean devices● Chemical filters

Thermoheater

Super Eqos

RE boiler

Chemical filters

Clean oven

Clean booths

TAKUMA CSR REPORT 201714

Plant construction processThis page introduces how our plant business, which is one of our core areas of operations, functions.

1 Sales activities
The mission of sales is to facilitate communication with customers, promote
Takuma’s products and services, and acquire information about potential customers’
new plant construction plans as quickly as possible. Then sales personnel work withinternal planning and design departments as well as cost estimation departments tocreate proposals that will satisfy those customers.

2 Planning and design
We develop a basic plan for each plant that will satisfy the customer’s needs. For
local governments, we propose a basic plan for the plant that conforms to thepurchase specifications that the ordering agency has provided. The purchasespecifications indicate the conditions and level of performance required by the local
government, for example in terms of the amount and type of waste it wishes toprocess, site conditions, and waste-fueled power generation capacity. Engineering
coordinators spec out incinerators and waste heat boilers along with other systems
in order to satisfy those conditions and performance requirements and determine
how the equipment will be laid out at the facility.

CSR Report 2017

Feature: Striving to Coexist with Local Communities

3 Cost estimation
We calculate the costs associated with all equipment and systems that will be
installed at the plant up until the facility’s completion based on the basic plan andfinalize a quotation to submit to the customer.

Order receipt
We propose the plan developed through the collaboration of sales, planning anddesign, and cost estimation coordinators to the customer. For local governments, this
proposal is submitted during the bidding process. If our proposal outshines other companies’ proposals and satisfies the customer, we will receive an order for the project.

4 Plan implementation and detailed design
Once we have received an order, we transition to detailed design work to facilitate
the construction of the plant. We conduct a detailed study of equipment
specifications and layout based on the plan and design and then proceed to finalize
associated details. At this stage, specialists from a variety of fields, including
combustion technology, exhaust gas treatment, and electrical control systems, work
together to create the detailed design.

5 Manufacture and procurement
We manufacture equipment and systems whose specifications have been finalized
at our factories using a strict quality control system and place orders with a varietyof specialized equipment manufacturers.

Business Development
CSR Initiatives
CSR Activities for the Future
Corporate Governance
Human Rights and Labor Practices
The Environment
Fair Business Practices
Consumer Issues
Participation in the Community
Contribution to Society

6 Construction work and commissioning
We commence the civil and foundation work, construct all plant buildings, installequipment and systems, and manage the project until the plant is fully operational.
Key considerations include efficient site operations, thorough schedule and costmanagement, and management of safety and quality at the site.

AcceptanceDuring the commissioning work, it is confirmed the constructed plant is capable ofsafe operation. Once the performance test is completed successfully, the acceptanceof the plant can be made.

7 After-sales service
Once the plant has been handed over to the customer, we provide periodical
inspections and maintenance to prevent problems and keep the plant operatingsafely over the long term. In addition to inspecting and repairing systems for whichinspections are legally mandated, we inspect and repair equipment deterioration anddamage that accumulates over time. In addition, we complete large-scale renovation
work in response to changes in applicable laws and customer needs.
15

TAKUMA CSR REPORT 2017

Financial Data

Feature: Striving to Coexist with Local Communities
DBO projects ① Kurume High Trust Co., Ltd.
Working with local residents to create a place that will be loved by the community
Kurume High Trust Co., Ltd. is a special-purpose company (SPC) that was established through joint investments by Takuma
Co., Ltd.; Takuma Technos Co., Ltd.; and ShinMaywa Industries, Ltd. to play the lead role in operating, maintaining, andmanaging Miyanojin Clean Center.
http://www.kurume-ht.com/■ Stakeholder message

Overview of Miyanojin Clean Center

Customer

Kurume City

Location

2225 Hacchojima, Miyanojin-machi, Kurume-shi, Fukuoka Prefecture

Site area

About 74,000 m2

Plant: Building size

6 aboveground floors, 1 belowground floor

Plant: Operating period

June 2016 to June 2036 (20 years)

Plant: Incineration facility

Plant: Crushing and sorting facility

Power output

Processing method

Stoker furnace (with conversion of ash into cement)

Processing capacity

163 tons per day (81.5 tons per 24 hours × 2 units)

Processing method

Crushing and sorting

Processing capacity

Unburnable waste and unburnable bulky garbage, 28 tons per 5 hours; burnable bulky garbage, 24 tons per 5 hours

Mr. Tomohisa Iida
Kurume-shi Government Office3,560 kWThe Miyanojin “Manabino” Biotope was completed in April 2016 at Miyanojin Clean
Center in Kurume. We created the facility’s basic design with the goal of having it becomea new symbol of Kurume and serve as a place where people could learn about the environment and spread what they learn while coexisting with the area’s scenic natural landscapeand as a place where people could learn about the plant and animal life that inhabits thecommunity. We built a space with water, plant life, and soil to foster a variety of plant andanimal species that live and reproduce in the basin’s rivers, waterways, and surrounding
areas. Going forward, we will work with Kurume High Trust to ensure that the facility willserve as a place where people can learn about the natural environment so that Kurume’s
exceptional environment can be passed down to the next generation by using the biotope
to host classes and events.
We held an experience-based learning event entitled “Mission: Find Aquatic Life” inAugust as the first environmental learning activity we proposed in FY2016. During thatevent, we caught fish living in rivers in the Chikugo River water system, released them into
the biotope, explained the ecology of the captured fish, and considered the implications
together with participants. The second activity took the form of a parent-child class
entitled “Learning How Fireflies Live” in March, where we explained that thinking about
how fireflies live means thinking about the local environment. Going forward, we will help
author the Miyanojin Biotope Newspaper, which is published by Kurume High Trust eachseason, by proposing new lifestyles to help ensure Kurume will have a rich future while
communicating information about plant and animal life as well as seasons from theMiyanojin “Manabino” Biotope.

17

TAKUMA CSR REPORT 2017

Feature: Striving
to Coexist with
Local Communities

The Kurume Northern Municipal Solid Waste Treatment Plant Development and Operation Project is being implemented asa DBO-style program that integrates facility design, construction, and operation in order to facilitate the proper processing ofmunicipal solid waste from the Kurume City. Under the project, Takuma Co., Ltd. was responsible for designing andconstructing the plant building, and Kurume High Trust Co., Ltd. took over operation of the plant following its completion inJune 2016.
The company’s goals in operating the facility include giving top priority to safe and stable operation, working to reduce its
environmental impact, ensuring that area residents feel secure living close to the plant, and utilizing it as a place where
people can gather to learn about the environment and related topics.
The facility has also been designed to help form a low-carbon society
and realize a recycling-oriented society. The incineration facility is designed
to utilize energy effectively by using surplus heat from incinerated waste
to generate electricity and selling surplus power remaining after plant
operation to power companies. Metals in the crushing and sorting
facility’s output stream are sold and recycled, while incineration ash isused effectively as a raw material in the production of cement.

The Kurume City built Miyanojin Clean Center, its second municipal solid waste intermediate treatment facility, so that it could promote the development of a recycling-basedsociety and carry out safe, stable waste processing over the long term.
With an incineration facility, crushing and sorting facility, and recycling facility as well as
the Environment Interchange Plaza, which is designed to serve as a place for environmental
awareness-raising and learning, Miyanojin Clean Center will not only process and recycle
waste, but also facilitate learning about the environmental field in general while revitalizing
the local community and creating a sense of excitement and activity in the surroundingarea by fostering social interaction through citizens’ activities.
To achieve these goals, I believe that it will be important for the facility to earn the trustof city residents so that it becomes a familiar presence to them and to contribute to thecommunity. We expect Kurume High Trust to pursue an active program of community
initiatives, for example by creating a sense of excitement by hosting environmental
awareness-raising events and exhibits that take advantage of the facility and cooperatingwith events conceived to revitalize the local community even as it gives top priority to
reducing environmental impact and operating the facility in a safe and stable manner.

(Environmental learning partner)

Mr. Yuji Yasueda
Ecoplan Corporation

TAKUMA CSR REPORT 201718

Feature: Striving to Coexist with Local Communities
DBO projects ② Hokutan High Trust Co., Ltd.
Providing a facility that will be trusted by local residents and safeguarding the area’s beautiful natural setting
Hokutan High Trust Co., Ltd. is a special-purpose company (SPC) that was established through joint investments by
Takuma Co., Ltd. and Takuma Technos Co., Ltd. to play the lead role in operating, maintaining, and managing Clean Park
Hokutan.
http://www.hokutan-ht.com/■ Stakeholder message

Overview of Clean Park Hokutan (Hokutan Administrative Association)

Customer

Hokutan Administrative Association

Location

943 Booka, Takeno-cho, Toyooka-shi, Hyogo Prefecture

Site area

About 2.6 ha

Building size

Administrative building: 2 stories; Clean Center: 6 aboveground floors; Recycling Center: 2 aboveground floors

Operating period

August 2016 to July 2036 (20 years)

Incineration facility

Crushing and sorting facility

Power output

Processing method

Fully continuous combustion stoker

Processing capacity

142 tons per 24 hours (71 tons per 24 hours × 2 units)

Processing method

Crushing and sorting

Processing capacity

19 tons per 5 hours

Mr. Toshiaki Tani
Hokutan Administrative
Association

About 2,850 kW

In the area around Clean Park Hokutan, there were a series of satoyama sites (including
terraced fields, rice paddies, bamboo groves, and forests) that had not been maintained over along period of time. In order to protect and restore these areas while utilizing them as places forlearning about coexistence with nature, studying the importance of resources and the environment, and gathering to foster rich sensibility, we took advantage of the opening of Clean Park
Hokutan to develop a plan for restoring these satoyama spaces, and we have offered assistanceto environmental learning projects that utilize them after the facility began operation.
Starting with information about satoyama spaces that we provided during the facility’s opening event in August 2016, we have planned and orchestrated a variety of events at which a large
number of area residents have participated and enjoyed themselves, including an acorn craft
session at which people made tops and traditional balancing toys with acorns that had beengathered in the satoyama; a parent-child soba-making and rice cake-making party where people
could experience those traditional techniques, which have been passed down in the community;
and a spring plant gathering where participants viewed and tasted flowers and mountainvegetables that can be found in satoyama spaces in spring. Going forward, we will continue tooffer operational assistance to ensure that Clean Park Hokutan can revitalize nature in this new era
and encourage regional interaction while fostering these satoyama spaces together with local
residents, for example by maintaining bamboo groves and forests and managing cultivation fields.

19

TAKUMA CSR REPORT 2017

Feature: Striving
to Coexist with
Local Communities

Clean Park Hokutan was built as a DBO project under the provisions of the Act on Promotion of Private Finance Initiatives
with the goal of protecting the living environment in the Hokutan region, improving public health, and moving away from asocial paradigm founded on mass production, mass consumption, and mass disposal to advance the 5Rs of waste (refuse,
reduce, reuse, repair, and recycle) in a comprehensive manner by facilitating the proper processing waste generated day inand day out by the city of Toyooka and the towns of Kami and Shin’onsen. Designed and built by the TakumaKabumoto-Kawami-Nishiyama Designated Construction Joint Venture, the facility was completed and began operation in July2016.
In addition to ensuring safety and inspiring peace of mind in the future on the part of area residents by reducing thecommunity’s environmental impact, the facility is dedicated to serving as a designated evacuation center in the event of adisaster and to functioning effectively as an area center of environmental learning and awareness-raising.
The facility also combats global warming through effective use of energy by using surplus heat produced when theincineration facility burns waste to generate electricity and then selling the surplus power that remains after facility use to a
power company (Takuma Energy Co., Ltd.) under Japan’s renewable energy feed-in-tariff program. In addition, generated
power is supplied to public facilities such as elementary and middle schools in Clean Park Hokutan’s member towns and cityin the spirit of “local production for local consumption.” The crushing and sorting facility also helps advance the 5Rs byrecycling processed materials.

The process leading to this project’s successful completion in July 2016 involved many twists
and turns over more than 18 years since the Hokutan Regional Waste Processing Plan wasformulated in December 1998. This success despite numerous challenges—for example, changes
in the height of the foundation during the earthwork phase and a reassessment of the project
design—due to the project’s reliance on a financing plan that utilized a jointly issued bond anddeadlines that were extremely demanding was made possible by the tireless efforts of thepartners in the Takuma Group Joint Venture, for which I am deeply grateful. When our association formulated the basic policies that would guide the construction of the facility, we asked
that it protect and revitalize the surrounding environment, that it foster coexistence and mutual
prosperity with nature, and that it serve as a dynamic and exciting place where people can learn
about the importance of resources and the environment through waste and enjoy interaction
with their fellow residents. We are pleased that the joint venture was able to construct a facility
that conforms to the construction policies that were put in place by our association.
One year has passed since Clean Park Hokutan began processing waste as part of its trial
operation phase in April 2016. Maintaining equipment reliability and operational stability is anextremely important part of continuing to operate the facility in a safe and stable mannergoing forward, and despite various issues, Hokutan High Trust is working hard to do just that.
We trust that it will continue to work hard to resolve the remaining issues. The facility began
hosting tours and environmental learning events in September 2016, and by March 2017 it
had hosted 1,373 visitors at a total of 51 tours and events. Hokutan High Trust has provided
assistance with planning events and explaining the facility to visitors, and the feedback that ourassociation has received through surveys and other means indicates that visitors are pleased
with the polite and accommodating reception they received. Going forward, we fully expect
Hokutan High Trust to operate the facility in a safe, secure, and reliable manner over the
20-year period ending in July 2036.

(Environmental learning partner)

Ms. Yuri Nakagawa
Chubu Branch Office
PREC Institute Inc.

TAKUMA CSR REPORT 201720

Feature: Striving to Coexist with Local Communities
DBO projects ③ Suwako High Trust Co., Ltd.
Supporting comfortable local lifestyles in order to create a sustainable future for a recycling-based society
Suwako High Trust Co., Ltd. is a special-purpose company (SPC) that was established through joint investments by Takuma
Co., Ltd.; Takuma Technos Co., Ltd.; and Okayagumi Co., Ltd.; to play the lead role in operating, maintaining, and managing
Suwako Koshu Clean Center.
http://www.suwako-ht.jp/■ Stakeholder message

Overview of Suwako Koshu Clean Center (Neighborhood of the Lake Administrative Affairs Association)

Customer

Neighborhood of the Lake Administrative Affairs Association

Location

4769-14 Uchiyama, Okaya-shi, Nagano Prefecture

Site area

About 19,620 m2

Plant: Building size

6 aboveground floors, 1 belowground floor

Plant: Operating period

December 2016 to November 2036 (20 years)

Plant: Incineration facility

Power output

Processing method

Stoker furnace

Processing capacity

110 tons per day (55 tons per 24 hours × 2 units)

Mr. Hirotomi Ito
Neighborhood of theLake Administrative
Affairs Association

2,050 kWOn December 1, 2016, Suwako High Trust Co., Ltd. began operating, maintaining, andmanaging Suwa Lakeside Clean Center, nicknamed eco-Poppo, with a robust series ofstructures for a term of 20 years with the guidance and cooperation of the Neighborhood of
the Lake Administrative Affairs Association and its member cities and town.
I believe that the most important aspect of these operations over the long term is
coexistence with the local communities, which is also a priority of the Association and its
member cities and town.
Although intermediate processing facilities have not enjoyed a particularly favorable image
to date, we look forward to striving daily to operate, maintain, and manage the facility in a waythat will endear it to everyone in the local communities. In doing so, our goal will be to involve
everyone in the process of “raising” eco-Poppo while visualizing the status of facility operations
and disseminating information in an accessible manner (via digital displays, the facility’s
website, etc.), disclosing information about those operations to local communities by holding
participatory events for residents (including operational briefings and facility tours), and actively
fostering the exchange of information among the Association, local residents, and Suwako
High Trust Co., Ltd.

21

TAKUMA CSR REPORT 2017

Feature: Striving
to Coexist with
Local Communities

Suwako Koshu Clean Center was constructed as a DBO project with the goal of facilitating the smooth implementation of
measures related to waste processing and the development of a recycling-based society through the joint, regional processing of waste by the cities of Okaya and Suwa and the town of Shimosuwa, all of which lie in the lakeside district. The
Takuma-Okayagumi Designated Construction Joint Venture designed and constructed the facility, which began operation in
December 2016.
To operate the facility in a way that achieves the goals of safeguarding nature,
educating residents, and connecting communities, Suwako High Trust is dedicatedboth to operating the facility in a safe and environmentally friendly manner so as toinspire peace of mind among residents and to coexisting with local communities
over the long term as a facility of environmental creativity where large numbers ofpeople gather.
In addition, the facility is helping to form a recycling-based society as part of the
Takuma Group by recovering as much heat from waste as possible and converting it
efficiently into electricity and then selling surplus power remaining after facility use
to Takuma Energy Co., Ltd. under Japan’s renewable energy feed-in-tariff program.

The Suwako Koshu Clean Center was successfully completed in December 2016 following aseries of twists and turns as the embodiment of the Lakeside District Waste Processing Basic
Plan that was formulated in 2005. The project’s goal is to jointly process waste from thelakeside district that includes the cities of Okaya and Suwa and the town of Shimosuwa on the
shores of Suwa Lake, which is located in roughly the center of Nagano Prefecture. Thanks to thetireless work and constant effort of Takuma, we were able to overcome the many challenges
and unexpected problems that continued to arise until the project was completed. I’d like toexpress our deep gratitude to all of your workers, along with my respect for their enthusiasm
and commitment. The completed facility provides functionality worthy of being calledstate-of-the-art, and it is also equipped to disseminate information as a symbol ofenvironmental protection. In particular, the center will help form a recycling-based society by
reducing CO2 emissions through the generation of electricity from heat, which it accomplishes
at an efficiency of close to 20%, highlighting its performance. Once the electricity has beenused locally, surplus power is sold. Concerning the concentration of exhaust gases, an area ofhigh interest to local residents, we required the facility to generate emissions that do not exceed
legal levels, but your company submitted guaranteed levels that are even lower than thoselevels as part of its focus in operation and management of reducing the facility’s impact on theenvironment of the surrounding area. Your employees have served as volunteers at a marathon
held near the facility, and they’ve cooperated with cleanup and other activities. You’ve also
earned trust by treating customers who bring waste directly to the facility in a meticulous andconsiderate manner. Going forward, we fully expect you to continue to operate the facility withan even greater focus on safety, peace of mind, and reliability over the next 20 years.

Mr. Katsunari Endo
Suwako High Trust Co., Ltd.

TAKUMA CSR REPORT 201722

Business Development 1

Activities of Our Municipal Solid Waste Treatment
Plant Business
A leading company in the industry

1 Plant construction

Since completing Japan’s first fully continuous mechanical waste incineration plant in 1963, Takuma has built more than
350 waste incineration plants in the country, more than any other company in the industry.
We have consistently led the municipal solid waste treatment industry, for example by starting operation of Japan’s firstcombined facility comprised of waste incineration and biogas recovery plants and building numerous high-efficiency wastefueled power plants.
Takuma will continue to contribute to the realization of a recycling-based society as the industry’s leading company.

Stoker-type incinerators
Most Energy from Waste plants use stoker-type incinerators. Takuma has been delivering stoker-type incinerators tocustomers for half a century, allowing us to accumulate a variety of expertise in areas such as stable combustion, exhaust gas
treatment, and waste-fueled power generation.
Based on this well-established base of technological capability, we build and supply highly efficient waste treatment
systems by integrating the latest technologies, for example water-cooled stokers, proactive combustion control, exhaust gas
recirculation systems, and furnace denitration and urea decomposition systems.
Steam

2

Business
Development

Filter-type
dust collector

Steam turbine
BoilerLaser H2O
meter

Technologies for increasing
power generation
Technologies for lowering
life cycle cost

Exhaust gas

4Incinerator
Catalyzer

Combined facility comprised of waste incineration andbiogas recovery plants

High-efficiency waste-fueled power plant(processing capacity: 163 tons per day)

(Delivered in 2013 to Nantan Regional Administrative Association)(Delivered in 2016 to Kurume City)

1
3
Water-cooled stoker +1 high-temperature/high-pressure boiler●●

This design increases the stocker’s cooling performance
to facilitate stable combustion of high-calorie waste.
It also increases the boiler’s steam conditions to improve
power generation.

5

Stack

Exhaust gas recirculation

3 system●

5 Fly ash circulation system

Generation of harmful substances isdramatically reduced by stirring andmixing exhaust gases with hot
circulating gases in the incinerator.

●

2 Proactive combustion control●

6

Exhaust gas
circulating
fan

Fly ash captured by the filter-type
dust collector is circulated, allowing
effective use of unreacted chemical
agents in the fly ash.

Catalyst regeneration

6 system●

Maintenance costs can be dramaticallyreduced by regenerating catalysts
without removing the catalyst from theassociated equipment.

4 Furnace denitration and urea decomposition system

This technology utilizes a laser H2O meter to implement real-time monitoring of waste characteristics
based on the concentration of moisture in combustion gases. Combustion is subject to proactive
control based on waste characteristics to maintain extremely stable combustion conditions.

●●This system ingests ammonia into the incinerator to reliably eliminate nitrogenoxides.
Life cycle cost is lowered by generating ammonia from urea at the facility.

Biogas recovery plants
High-efficiency waste-fueled power plant(processing capacity: 600 tons per day)High-efficiency waste-fueled power plant(processing capacity: 110 tons per day)

(Delivered in 2014 to the Clean Authority of Tokyo)(Delivered in 2016 to the Neighborhood of the Lake Administrative Affairs Association)

From construction to after-sales service
Takuma’s municipal solid waste treatment plant businessconsists of four components: plant construction, primaryequipment improvement, maintenance, and long-term
turnkey operation.
In each area of operations, we draw on technologicalcapabilities and expertise based on our extensive experienceto precisely meet the needs of local governments, regions,and society, allowing us to offer facilities that are
welcomed by their communities.

Recently the Ministry of the Environment has been encouraging the introduction of biogas recovery plants for use withmunicipal solid waste. This is an area where Takuma is helping further lower CO2 emissions with a combined system of
methane fermentation and incineration for municipal solid waste to recover the maximum amount of energy from the waste
treatment and utilize it in high-efficiency power generation. (The system received the New Energy Foundation’s Chairman Award at the FY2014
New Energy Awards.)

Combustible
waste
Needs ofsociety

Methanegas
Methanefermentation tankFermentation
residue

Needs offiees
escommunities

Plastics, etc.
Takuma technologies
Takuma’sand expertise

Sorting system

Electric powercompany
Electricity
generation

Steam turbine
generator
Exhaust gas
treatment
systemIncinerator and boiler

TAKUMA CSR REPORT 2017

Gas-powered
generator

Steam

Exhaustgas

Facilities that are welcomed by their communities

23

Electricity
generation

Garbage
Wet paper

New EnergyAwardsStack

New Energy
Foundation’s
ChairmanAward

TAKUMA CSR REPORT 201724

Business Development 1

Activities of Our Municipal Solid Waste Treatment Plant Business2 Primary equipment improvements

3 Maintenance

Implementing high-value-added renovations

Ensuring stable waste treatment

Although waste treatment plants are required to operate over extended periods of time, equipment must be renovatedonce 20 or more years has passed since the plant began operating. In addition, changes in the regulatory environment andsociety sometimes make large-scale renovations necessary.
Takuma draws on the sophisticated heat utilization technologies and energy-saving technologies it has accumulated as aboiler and environmental plant manufacturer to carry out high-value-added and large-scale renovation projects. In this way,
we are able to help extend facilities’ service life while lowering CO2 emissions.

Annual maintenance is essential in order to ensure stable operation of waste treatment plants. However, maintenancedemands both sophisticated technological capabilities and experience, both because waste treatment plants draw on a range ofexpertise and because the manner in which their equipment deteriorates over time varies with the properties of the waste they
process. Takuma takes maximum advantage of its accumulated expertise to contribute to stable waste treatment and long-term
facility operation by developing long-term repair plans, carrying out elaborate site investigations, and then performing
maintenance that has been optimized in terms of both timing and content.

Installation of
inverters on cranes●

Improvement of steam turbine capacity

Installing boilers on
water-injection furnaces● Expanding boilers’ heating surface

Improving generating capacity by increasing steam intake capacity andoptimizing design features● Improving the capacity of steam condensers●●

Business
Development

Reducing power by installing
speed control-type inverters

Improvement ofheat recovery

Repairing an incinerator’s refractory

Measuring the thickness ofboiler water tubes

Maintaining a conveyor

4 Long-term turnkey operation business
Steam

G

High-quality facility operation using

Steam turbine
Waste crane

Steam condenser

Quenching tower

Our long-term comprehensive operation business, in which we offer contract operation, maintenance, and management services
over a period of 10 to 20 years, has been growing in recent years. As of May 2017, the Takuma Group operates 16 facilities.
We are working to increase the quality of our operation, maintenance, and management services by progressively deploying, a system that we developed during FY2016, at the facilities we operate.
makes it possible to achieve evenmore stable operation by analyzing enormous volumes of accumulated data, for example to facilitate more sophisticated: Plant Optimization Comprehensive Support System)
automatic combustion control. (∗Filter-type
dustcollector

Boiler∗, a comprehensive support system for operation, maintenance, and management

Incinerator

Induceddraft fan

Operated facility

Stack

Ash conveyor

Operating data●●

Adoption ofhigh-efficiency motors

Enhancement of combustion equipment efficiency
Improving stable combustion by changing furnace shape and stabilizing
the volume of steam generation and power generation● Reducing the volume of exhaust gases and increasing the volume ofheat recovery by adopting low-air-ratio combustion technology●●

Reducing power use by adopting
high-efficiency motors

Installation of
inverters on fans●

Reducing power use by installing
speed control-type inverters

Takuma Head Office

DCS continuous operation data
DCS graphical display monitoring

Aggregationof data

Inspection data●●

Daily inspection records
Measurement and analytical data

Comprehensive Support Center

Maintenance data
Functional diagnostics and inspection
records● Maintenance history data●

Increasing the quality of our operation,
maintenance, and management services
Implementation of safe and sophisticated operation
Streamlining of maintenance and management● Optimization of utility use and power income/expenditures●●

Examples of primary equipment improvement works
25

TAKUMA CSR REPORT 2017

integrated server
Utilizationof systemfunctionality
and provision oftechnical support

Central management and accumulation of a range of data types
Statistical analysis of data andmachine learning● Evaluation of equipment
performance and failure prediction● Visualization of service level andstudy of reductionsetc.
●

conceptual diagram
TAKUMA CSR REPORT 201726

Business Development 2

Activities of Our Energy Plant Business—Transforming a variety of biomass resources into fuelTechnologies and experience in using a broad range of biomass fuels
Since its founding, Takuma has enhanced its technological capabilities as a pioneering boiler manufacturer to deliver a
total of more than 600 boilers designed to accommodate a wide variety of biomass fuels in Japan and overseas.
Going forward, we will continue to actively pursue development and improvement of technologies for effectively using
energy in a way that gives priority to both humankind and the planet while simultaneously meeting customer needs.

Social landscape

Takuma is working on facilities that use biomass fuel throughout Japan.
● We have constructed facilities that use forestry-derived

biomass fuels such as thinned timber and waste fromlumber plants and industry-derived biomass fuels suchas plant waste and sludge from manufacturing plants inmany regions.

Hokkaido Region
Wood fuel: 11 plants● We have constructed many facilities in Japan that use

livestock-derived biomass fuels such as chicken and cattle
manure and agriculture-derived biomass fuels such as
bagasse (fiber remaining after sugarcane is crushed andsugar extracted), particularly in Kyushu and Okinawa.

Tohoku Region

Wood waste-fired
boilerChubu Region

Wood fuel: 25 plants
Other fuel:3 plants

Business
Development

The Great East Japan Earthquake of 2011 threw the safety of nuclear power plants into question and led many tobegin focusing on “renewable energy,” which is characterized by a low environmental impact, as an alternative sourceof energy. Biomass-fueled power generation in particular promises beneficial ripple effects such as redevelopment of
the forestry industry and job creation as companies move to fill needs of fuel procurement, transport, and storage aswell as chip processing and other operations. Compared to solar and wind power, biomass also has the advantage ofbeing able to provide power in a relatively stable manner without being affected by weather. Currently, biomass-fueled
power plants are being planned and built in locations across Japan.

Delivery record of biomass boilers by area of Japan

Wood fuel: 33 plants
Other fuel:Chugoku Region

Renewable energy

Wood fuel: 25 plants
Other fuel:

Wood fuel: 22 plants

Wood fuel: 20 plants
Other fuel: 48 plants

Hydro

Other fuel:3 plants

Shikoku Region
Wood fuel: 10 plants

Geothermal

Biomass

9 plants

Kinki Region
Kyushu-Okinawa Regions

Wind

Kanto Region

Wood fuel: 28 plants

Chicken manure-fired
boilerSolar

7 plants

Paper mill sludge-fired
boilerBagasse-fired boiler∗ “Other fuel” includes livestock manure, bagasse, miscellaneous plant waste, and sludge.
(as of March 31, 2017)

Forestry-derived biomass fuels

Industry-derived biomass fuels

VOICE

Debris from demolitionof wooden houses

Waste fromlumber plants

Thinned timber

Livestock-derived biomass fuels

Chicken manure

27

TAKUMA CSR REPORT 2017

Cattle manure

Paper sludge

Miscellaneous
plant waste

Agriculture-derived biomass fuels

BagassePruned fruit
tree branches

Rice husks

Sales activities from the customer’s
perspective

Planning of biomass-fired power plants has surged due to the effects of Japan’s
feed-in tariff (FIT) program for renewable energy, which entered into effect in July
2012. As a result, our sales departments have been receiving a large number ofinquiries for such facilities.
Our primary focus as we work to accommodate those inquiries is on pursuingsales activities from the customer’s perspective. Since numerous companies fromother industries are entering the FIT business, we work in our daily sales activities
to build trust by addressing the concerns of customers with little experience inplant operation and to offer the best possible proposal for each customer.
Negotiations typically entail considerable difficulty, but I look forward toworking through various obstacles and challenges in an optimistic and constructive
manner while communicating closely with involved parties both inside and outside
the company.

Junya Yamada
Section 1
Plant Sales Department 1
Energy Plant Division &Manager
Section 1, Hokkaido Branch
Takuma Co., Ltd.

TAKUMA CSR REPORT 201728

Business Development 2

Activities of Our Energy Plant Business—Pursuing biomass power generation
Biomass-fired power plants comprise one of our most skilled product areas. Activity in the segment has been sparked by
the prospect of stable profits made possible by the launch of Japan’s feed-in tariff system for renewable energy, and Takuma
has received orders for numerous plants.
We have also received multiple orders for boiler fuel conversion projects to provide electricity and steam for internal plantuse.
Power output scaleGreater than or equal to 10,000 kW
Greater than or equal to 2,000 kW
but less than 10,000 kW

Hanamaki Biomass Energy Co., Ltd.

Less than 2,000 kW

Tsugaru Biomass Power
Generation Co., Ltd.

Conversion to biomass fuelMogami Biomass Power
Co., Ltd.
Ibuki Green Energy Co., Ltd.
Sanyo Paper MFG. Co., Ltd.

Ichinohe Forest Power Co., Ltd.

Matsue Biomass Power Co., Ltd.

Utthi Kawai Co., Ltd.
Pultec Energy Co., Ltd.

SARA Incorporated

SGET Green Power Sanjo
Godo Kaisha

Chugoku Mokuzai Co., Ltd.
Head Office Plant

Step grate stoker

Traveling stoker

This combustion method,which derives from waste
incineration technology, canbe used to uniformly burnfuels with different calorificvalues, moisture content,
shapes, and sizes. Anothercharacteristic of this method
is that it requires less power
to operate (known as facility
power) than other types.

With a traveling stoker, fuel isdistributed in the furnace sothat longer combustion times
are secured for fuel withlarger volumes. As with astep grate stoker, combustion
is comparatively gradual, andthe system can accommodatea wide range of fuels withdifferent calorific values, moisture content, and shapes.

Installation example: Sendai Factory, Chuetsu
Pulp & Paper Co., Ltd.

Installation example: Ariake Green Energy Co., Ltd.

Chuetsu Pulp & Paper Co., Ltd. is a large general
paper manufacturer that manufacturers, processes,
and sells pulp and paper products.
The facility we delivered at the company’s Sendai
Factory uses a step grate stoker that can accommodate
biomass fuels with a variety of properties and shapes in
anticipation of the future diversification of fuels.
[Equipment overview]○ Location: Satsumasendai City, Kagoshima Prefecture○ Power output: 23,700 kW

Ariake Green Energy Co., Ltd. is a wood chip
biomass-fueled power plant operator established withinvestments by Ishizaki Inc.; Kyushu Biotech Co., Ltd.;and Matsumoto Mokuzai Co., Ltd.
This plant uses scrap lumber and other wood wastefrom lumber mills in Kumamoto Prefecture as well as
unused lumber such as wood from thinned trees asbiomass fuel. The business is expected to yield a variety
of benefits, including the revitalization of the forestry
industry and the local community through job creation.

Business
Development

Akita Green Power Co., Ltd.

Proposing combustion furnaces that can accommodate the fuels customers use[Equipment overview]○ Location: Arao City, Kumamoto Prefecture○ Power output: 6,250 kW

DS Green Power Generation
Yonezawa LLC.

Wood One Co., Ltd.
Kurihalant Co., Ltd.
Chugoku Mokuzai Co., Ltd.
Imari Factory

Rengo Co., Ltd., Yashio Mill
Fuji Seishi Cooperative

Ariake Co., Ltd.
No.2 Power Plant

Shin Tokai Paper Co., Ltd.
Shimada Mill

Ariake Green Energy Co., Ltd.

Gifu Biomass Power Co., Ltd.

Chuetsu Pulp & Paper Co., Ltd.
Sendai Factory
Chugoku Mokuzai Co., Ltd.
Hyuga Factory

SALA e POWER Co., Ltd.
Japan Farm Co., Ltd.

Biomass Power Technologies Inc.
Mie Ene Wood Co., Ltd.
Maniwa Biomass Power
Co., Ltd.
Tosa Green Power Co., Ltd.
Ehime Forest Generation, LLC∗ Biomass-fired power plants ordered during or after July 2012(as of March 31, 2017)29

TAKUMA CSR REPORT 2017

Bubbling fluidized bed

Circulating fluidized bed

Since sand that has been
fluidized by high-pressure air
burns away the surface of thechips, little unburned fuelremains, making high boiler
efficiency a characteristic of
fluidized bed systems. They
can accommodate a variety ofdifferent types of fuel, including fuels with high moisture
content.

Heated, fluidized sand burns
fuel as it circulates, keeping
temperatures inside thefurnace uniform to enablestable combustion. Since little
waste remains unburned,
boiler efficiency is high, andthe system can accommodate
a broad range of mixed fuelswith different caloric values.

Installation example: Hanamaki Biomass EnergyCo., Ltd.

Installation example: Hyuga Factory, Chugoku
Mokuzai Co., Ltd.

Hanamaki Biomass Energy Co., Ltd. is a wood chip
biomass power plant operator established by a group ofinvestors led by Takeei Corporation.
This plant makes effective use of unused lumber suchas wood from thinned trees from Iwate Prefecture’s lush
forests and lumber damaged by pine weevils to create
renewable energy.

Chugoku Mokuzai Co., Ltd. is a large general lumber
company that offers an extensive product line ranging
from lumber to laminated lumber and precut lumber.
The facility delivered by Takuma to the company’s
Hyuga Factory uses a circulating fluidized bed boiler that
can accommodate the customer’s need to effectively
utilize a wide range of biomass fuels.

[Equipment overview][Equipment overview]○ Location: Hanamaki City, Iwate Prefecture○ Power output: 6,250 kW○ Location: Hyuga City, Miyazaki Prefecture

TAKUMA CSR REPORT 201730

Business Development 3

Activities of Our Water Treatment Plant Business
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 fromsludge.
This section introduces some of Takuma’s recent initiatives, using a sewage treatment plant as an example.

3 Sludge-fueled power

generation facility

2 Rapid filtration facility
A sand filtration facility removes even smallersuspended particles in water that has alreadypassed through the reaction tank and sedimentation basin. This type of facility is necessary when
the river into which treated sewage is discharged
is subject to strict water quality requirements orwhen the treated sewage will be reused.
Moving-bed sand filtration facilities, which are a
specialty of Takuma’s, deliver energy and spacesavings along with stable performance. To date,
we have delivered more than 2,500 such systems
throughout Japan.

VOICE

Helping protect water quality
where treated sewage is discharged

Section 2
Construction Department(Osaka)Construction Center
Takuma Co., Ltd.
2 Rapid filtration facility

1 Reaction tank facility

Business
Development

Yoshinobu Konomi

In this project, we installed a newfiltration facility capable of treating
about one-third of the entire
throughput of the Edagawa Sewage
Treatment Plant (about 30,000 m3
per day). This type of system isinstalled inside a tank, so it’s difficult
to picture what it looks like, but acreative approach is required in order
to fit it into the available space since
it has a large number of components.
I was responsible for the construction process as the project’s field
representative. We completed thatprocess without incident in about six
months thanks to support from thecustomer and numerous other involved parties. I hope that throughthis construction project we will beable to help protect water quality
where treated sewage is discharged.

Installation example(Edagawa Sewage Treatment Plant, Nishinomiya City)

1 Reaction tank facility
A bioreactor tank, which provides the primary
type of water treatment at the site, purifies
sewage through the action of microorganisms.
Takuma’s low-power agitator plays a key role byreducing the power consumption requirementsof agitating activated sludge to one-third of
those of a conventional facility.

3 Sludge-fueled power generation facility

VOICE

Stable operation over thelong term

Masanobu Fukuzawa
Section 1
Sewerage Engineering
Department
Project Center
Takuma Co., Ltd.

Installation example(Higashiuji Sewage Treatment Plant, Uji City)

31

TAKUMA CSR REPORT 2017

In this project, we replaced an
outdated reaction tank facility witha state-of-the-art energy-saving
system and introduced advanced
treatment capable of removing
nitrogen and phosphorus. The
latter can be expected to improve
the quality of treated sewage, toprotect water quality where treateddischarge is discharged, and toprevent eutrophication, whichcauses phenomena such as red
tides, in Osaka Bay. It is our hopethat the facility in whose designand construction I was involved will
operate in a stable manner over thelong term and play a useful role inprotecting the water environment.

Sludge, which is a byproduct of the sewage
treatment process, contains a large amount ofenergy. As a result, it has been attracting attention in recent years as a type of biomass.
Takuma harnesses its core incineration andboiler technology to make effective use of sludge
as fuel for power generation to create electricity.

VOICE

Contributing with the latest
systems∗ Artist’s conception

Hiroki Wada
Section 2
Sewerage Engineering
Department
Project Center
Takuma Co., Ltd.

Installation example()

Tama River Water Recycling Center[currently under construction], Tokyo

The new sludge-fueled facility
we’re building in this project is astate-of-the-art system that incorporates steam power generation intoa stoker furnace and waste heatboiler that was ordered by the
Tokyo Metropolitan Government’s
Bureau of Sewage to fulfill a hightemperature, energy-saving furnaceand generator procurement project. The facility will generate 137
kW from incineration of 140 tonsof sludge per day. We’ll be working
with the Tokyo Metropolitan
Government and other involved
companies to complete the projectsafety and reliably by the end of
FY2019.

TAKUMA CSR REPORT 201732

Business Development 4

Activities of Our Overseas Business
Biomass-fueled power plant business in the Southeast Asian market

Overseas Energy from Waste plant business

The biomass-fueled power generation boiler business in Southeast Asia is an essential part of any discussion of Takuma’s
history. 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 wehave a local subsidiary. Takuma has supported the Thai sugar industry for many years.
As the feed-in tariff program 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 to construct boilers
with the goal of using 10 MPa/520°C class boilers that operate at comparatively high temperature and high pressure levels toactively generate electricity for resale to boost their income. In this way, demand for this type of boiler facility is expected tocontinue to grow.
Under these conditions, we look forward to helping supply environmentally friendly power from biomass, particularly inSoutheast Asia, by accommodating demand not only in Thailand, but also in neighboring countries such as Indonesia andVietnam with reliable technology and fine-grained customer service based on our extensive experience in the field.

Biomass

Water

Business
Development

Electricity
Steam

Waste processing problems have been manifesting themselves in countries around the world recently due to the effects of
rapid urbanization, and there have been reports of the adverse effects of burying waste as-is on living conditions, including
soil pollution and fires, especially in developing nations. These countries have embarked on initiatives to resolve waste
processing issues, but the fact remains that they require even more sophisticated waste processing diagnostic expertise,advice, and guidance.
Takuma has deep experience and an extensive track record that together make it a market share leader in waste
incineration and processing equipment in Japan. The photograph below depicts a plant that we delivered in Beijing, China,
but in fact we have delivered plants in nine overseas countries and regions, including China and the UK. Our Lakeside Plant in
the UK and our Gaoantun Plant in Beijing have earned a high level of praise and trust from their respective customers, forexample due to the facilities having achieved continuous operation for more than 8,000 hours a year.
We look forward to taking advantage of our extensive experience to closely exchange information and engage inpartnerships with local stakeholders as we offer optimal proposals that meet the full array of needs using technologicalcapabilities in which we have great confidence.
Apart from plant construction, numerous issues must be addressed in order to resolve waste processing problems,
including methods for collecting and sorting waste, awareness-raising and environmental education, and consensus-building
with local residents. While it takes time to resolve each of these in turn, we are confident that it is precisely by cooperatingwith such initiatives that we can best provide safe, stable plants that inspire pace of mind on the part of people in their hostcountries and communities.
Going forward, Takuma will continue to contribute to environmental protection by pursuing an overseas Energy from
Waste plant business that suits each country and community.

Gas

Beijing Gaoantun Energy from Waste Plant(China)Air● Processing capacity:
Ash

Ash

1,600 tons per day(800 tons per day × 2 units)

Bagasse-fired boiler installation example● Steam capacity:

73.8 tons per hour

● Steam pressure:

4.0 MPa● Steam temperature: 400°C● Rated power output: 15,000 kW × 2 units

Sugarcane deliveries

VOICE

Contributing to energy supply overseas

The first time I visited a sugar factory in Thailand, I was amazed at the scale ofthe facility. At the same time, I was impressed that one of our boilers was serving
as the plant’s source of power. We’ve delivered numerous boilers overseas, and I
think that this experience has served to further hone our biomass combustion
technology. I look forward to doing my best to help supply energy locally throughdiligent sales activities so that we will be able to pass that legacy on to the next
generation of Takuma engineers intact.

33

Bagasse yard

TAKUMA CSR REPORT 2017

VOICE

Takahiro Akaishi
Manager, Sales Section
Energy Plant Sales Department
International Operations Division
Takuma Co., Ltd.

Helping solve environmental problems
overseas

Waste incineration facilities, which are one of Takuma’s flagship products, are
one type of essential infrastructure that numerous developing nations in Asia
expect to construct in the future. Although the market environment, for example interms of laws, has not yet been put in place in those countries, I’m involved inlarge-scale projects related to developing associated mechanisms. I find my job
motivating from the standpoint of being able to help resolve environmental
problems in developing nations.

Masaya Kawamoto
Sales Section
Environmental Plant Sales Department
International Operations Division
Takuma Co., Ltd.

TAKUMA CSR REPORT 201734

Business Development 5

Main Recent Projects
The following are the main facilities supplied by Takuma during FY2016.

Municipal solid waste treatment plants■ New construction (DBO projects)∗ More information about the following projects can be found in “Feature: Striving to Coexist with Local Communities” on pages 17 to 22.
●

Miyanojin Clean Center■ Primary equipment improvements●

Kogasaki Incineration Facility City of Kitakyushu●

Mattoishikawa Environmental Clean Center

Business
Development

Project name Kogasaki Plant Incineration Facility
Improvement Project
Capacity
Incineration facility: 810 tons per day(270 tons per day × 3 units)
Power output: 17,200 kW
Location
Fukuoka Prefecture

Project name Mattosihikawa Environmental Clean Center
Primary Equipment Improvement Project(Plant Construction)
Capacity
Incineration facility: 240 tons per day(80 tons per day × 3 units)
Power output: 2,900 kW
Location
Ishikawa Prefecture

Project name Northern Kurume Solid Municipal Waste Treatment Facility Development and Operation Project
Capacity
Incineration facility: 163 tons per day(81.5 tons per day × 2 units)
Power output: 3,560 kW
Location
Fukuoka Prefecture●

Clean Park Hokutan

Project name Hokutan Waste Treatment Facility
Development and Operation Project
Capacity
Incineration facility: 142 tons per day(71 tons per day × 2 units)
Power output: 2,850 kW
Location
Hyogo Prefecture

35

TAKUMA CSR REPORT 2017●

Suwa Lakeside Clean Center

Project name Lakeside District Waste Treatment Facility
Development Project
Capacity
Incineration facility: 110 tons per day(55 tons per day × 2 units)
Power output: 2,050 kW
Location
Nagano Prefecture●

Osato Regional Konan Clean Center

Project name Konan Clean Center Core Equipment
Improvement Project
Capacity
Incineration facility: 100 tons per day(50 tons per day × 2 units)
Location
Saitama Prefecture●

Sakado West Disposal Center

Project name Sakado West Disposal Center Incineration Facility
Primary Equipment Improvement Project
Capacity
Incineration facility: 80 tons per day(40 tons per day × 2 units)
Power output: 160 kW
Location
Saitama Prefecture

TAKUMA CSR REPORT 201736

Business Development 5

Main Recent Projects

Energy plants●

Ichinohe Forest Power Co., Ltd.

Water treatment plants●●

Sanyo Paper MFG. Co., Ltd.

Project name Arao Biomass Power Plant New Construction Project
Capacity
Fuel: Wood fuelSteam conditions (normal operation):29.2 tons per hour × 6.0 MPaG × 425°C
Power output: 6,250 kW
Location
Kumamoto Prefecture●

Project name Biomass Boiler Generation Equipment Installation Project
Capacity
Fuel: Biomass fuelSteam conditions (normal operation):
70 tons per hour × 6.0 MPaG × 460°C
Power output: 16,700 kW
Location
Tottori Prefecture●

Shin Tokai Paper Co., Ltd., Shimada Mill●

Hanamaki Biomass Energy Co., Ltd.

●

37

TAKUMA CSR REPORT 2017

Tatsuno City Matsubara Preprocessing Plant

Project name Matsubara Preprocessing Plant No. 1 Thickener Tank
Scraper Update Project
Capacity
Type: Center-drive suspended typeSpecifications: 17,900 mm diameter × 1 unit
Location
Hyogo Prefecture

Osaka Soda Co., Ltd. (via Daiso Engineering Co., Ltd.)Uji City Higashiuji Sewage Treatment Plant

Project name Uji City Higashiuji Sewage Treatment Plant
Water Treatment Equipment Project No. 16
Capacity
Treatment volume: 3,650 m3 per day
Treatment method:
Biological nitrogen removal with agglomerating agent
Specifications: Low-power vertical agitator, aeration system
Location
Kyoto Prefecture●

Nagoya City Tsuyuhashi Sewage Treatment Plant

Project name Tsuyuhashi Sewage Treatment Plant Water Treatment
Equipment Project (No. 3)
Capacity
Treatment volume: 80,000 m3 per day
Type: Moving-bed upflow continuous sand filter
Specifications: M60 × 6 units × 8 basins(requiring addition of agglomeration agent)
Location
Aichi Prefecture

Overseas energy plants●

Project name Boiler and Turbine Equipment Installation Project
Capacity
Fuel: Wood fuel, RPF
Steam conditions (normal operation):
100 tons per hour × 6.0 MPaG × 460°C
Power output: 23,040 kW
Location
Shizuoka Prefecture●

Project name Edagawa Sewage Treatment Plant Rapid Filtration Facility
Machinery and Equipment New Construction Project
Capacity
Treatment volume: 29,500 m3 per day
Type: Moving-bed upflow continuous sand filter
Specifications: M60 × 10 units × 2 basins (high-speed type)
Location
Hyogo Prefecture

Project name Biomass Power Plant Construction Project
Capacity
Fuel: Wood fuelSteam conditions (normal operation):
28 tons per hour × 5.98 MPaG × 425°C
Power output: 6,250 kW
Location
Iwate Prefecture●

Nishinomiya City Edagawa Sewage Treatment Plant

Business
Development

Project name Biomass Power Plant Construction Project
Capacity
Fuel: Wood fuelSteam conditions (normal operation):
28 tons per hour × 5.98 MPaG × 425°C
Power output: 6,250 kW
Location
Iwate Prefecture

Ariake Green Energy Co., Ltd.

Rajburi Sugar Co., Ltd.

Project name RPF Boiler Plant Installation Project
Capacity
Fuel: RPF
Location
Okayama Prefecture
Project name N-5000H Bagasse-Fired Boiler
Capacity
Fuel: Bagasse
Number of boilers: 1
Steam conditions (normal operation):
150 tons per hour × 4.2 MPaG × 450°C
Location
Ratchaburi, Thailand

TAKUMA CSR REPORT 201738

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 FY2016
Each department discussed CSR issues in line with those key issues and developed its own action program. At the end of
the year, those departments then conducted self-evaluations to assess how well they had implemented their programs. (Thetable below outlines some of the results of that process.)

ISO 26000
core subjects
Organizational
governance

Key issue

CSR issue

Corporate governance

Verification of corporate administrative proceduresCompliance

Cultivation of a robust corporate culture

Department
Internal Auditing
Division
CSR Division

Risk management

Mitigation of risks to employee safety

General Affairs
Division

Improvement of risk management techniques (reduction of additional costs)

Engineering
Division

Consumer issues

Fair operating
practices

Labour practices
and human rights

39

Construction
Division

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

Appropriate disclosure of technical information to outside parties

Engineering
Division

Employee training on social responsibility

Promotion of employee understanding (awareness) of social responsibility

Marketing
Division

Stakeholder engagement

Development of trusting relationships with customers

Engineering
Division

Safety and quality of products and services

Provision of products that contribute to customer satisfaction

Marketing
Division

Preventive measures related to risk concerning the safety and quality of
products and services

Engineering
Division

Improvement of construction quality

Construction
Division

Provision of high-quality products that contribute to customer satisfaction

Manufacturing
Division

Compliance with the Antimonopoly Act

Understanding of the provisions of the Antimonopoly Act

Marketing
Division

Fair business relationships with customers andbusiness partners

Implementation of fair transactions with business partners

Administration
Division

Respect of property rights

Protection and utilization of intellectual property rights

Engineering
Division

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

Initiatives to address occupational safety and health

Safety Control
Division

Pursuit of appropriate labor conditions and initiatives to balance work andpersonal life

Marketing
Division

Employee skill development (skill enhancement)

Leadership for young employees and efforts to pass down expertiseMarketing
Division

Environment

Contributions to resolving environmental problems

Energy-saving initiatives

Engineering
Division

Community
involvement anddevelopment

Impact of business activities on the local communityand society at large

Contribution to the communities around our worksites

Marketing
DivisionContribution to society

Community service and other volunteer opportunities

General Affairs
Division

TAKUMA CSR REPORT 2017

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 Takuma’s 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
will continue to draw on this strength in our activities going forward.
FY2016 action program
Action plan

Self-evaluation of results

Verify whether corporate activities (general operations) are being carried out inaccordance with predetermined control procedures (such as rules) by means of aninternal audit.

We carried out an internal audit in accordance with the audit plan. We found that
activities were generally conducted according to plan and that they generated results.

Share formulations of Takuma’s 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, and the
Takuma Group Code of Conduct in the CSR Report 2016 and in internal education andworked to ensure that they permeate the organization and take hold.

Carry out activities to reduce the number of traffic accidents, including those causedby company vehicles and bicycles.

We worked to raise awareness, for example by holding training at a driving school for
individuals who have been involved in two traffic accidents and holding safety lectures
given by an outside instructor. We believe that awareness increased as a result.

Reduce the risk of incurring additional costs by enhancing partnerships withdepartments placing orders.

In addition to continuing preliminary studies, we worked to reduce the risk of incurring
additional costs by enhancing partnerships with departments placing orders.

Enhance the information included in construction plans for each project by identifying
risks associated with work in the field in order to eliminate accidents and disasters atconstruction 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, and worked tomake improvements, accidents resulting in work stoppages still occurred, preventing us fromachieving our goal. Going forward, we will augment guidance and education for workers
with education for site managers.

Promote useful Takuma technologies and spread awareness outside the company byhaving employees apply for and win awards.

We applied for and received one award during this fiscal year. Combined with theresults of similar activities last year, we have now received two such awards.

Apart from companywide education, offer departmental education to deepen
employees’ understanding (awareness) of social responsibility.

We offered educational experiences such as holding readings of documents related tosocial responsibility and carried out initiatives to deepen employees’ understanding of
CSR in general.

Work to resolve issues by organizing and sharing customer information and examples
of problems encountered during past projects.

We worked to deepen trusting relationships with customers and to resolve issues byorganizing customer information and examples of similar problems that have occurredin the past and sharing that information with operational management.

Work to ensure effective communication with customers and comply with customer
requirements.

Customers who responded to this year’s customer satisfaction survey praised Takuma
for its fast, sincere service, and we were able to provide products that contribute tocustomer satisfaction thanks to the cooperation of involved departments.

Enforce precisely targeted safety guidance and safety patrols in the field.

We offered safety guidance and education by holding safety patrols and liaison
meetings.

Work to improve construction quality by carrying out voluntary inspections in the fieldand strengthening checks of the status of construction management in the field byinternal 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 the status of construction
management in the field at least once a month, with the result that we had no orders ofadditional work due to defective construction.

Carry out process intermediate inspections in a reliable manner.

We carried out process intermediate inspections in a reliable manner, but inspection
mistakes led to the occurrence of defects.

Hold workshops about the Antimonopoly Act, for example as part of complianceeducation.

We held workshops about the Antimonopoly Act as part of compliance education andother programs.

Offer support for fair business practices in sales, manufacturing, procurement, andconstruction departments (support for transactions that comply with all applicablelaws and regulations).

Cost management department personnel offered support for fair business practices on
the part of ordering departments after carrying out cost assessments in a fair andappropriate manner.

Offer education about intellectual property rights and work to raise employee
awareness about protecting and utilizing those rights.

We worked to raise employee awareness by holding courses on patent basics for new
employees as part of new employee training and for all employees at company
branches.

Prevent the type of fatal accidents that occurred last year based on the FY2016 safety
and health plan.

We were able to prevent fatal accidents by implementing a variety of measures,
including by strengthening Safety and Health Committee structures.

Work to enhance the balance between work and personal life by encouraging
employees to make appropriate use of leave time.

Employees were aware of planned paid holidays and took paid time off while
coordinating their plans with coworkers in their department.

Work to improve the mastery of knowledge with an emphasis on participating in learning
opportunities such as OJT related to operations involving the export of parts to previously
delivered plants as well as seminars related to employees’ own departments, for example
with a focus on subjects such as English contracts and export controls.

Concerning the export of parts, we offered education for department employees witha focus on OJT. Despite handling a comparatively large volume of such exports during
the fiscal year under review, there were no incidents with detrimental effects.

Deploy systems that can be expected to (1) maximize generating capacity, (2) minimize
power consumption, and (3) reduce utility use.

We were able to orchestrate more deployments than we planned at the beginning of
the fiscal year.

Engage in activities that contribute to communities around worksites.

Worksite employees participated in cleanup activities and were able to make acontribution to the local community, however slight.

Actively participate in the activities of local organizations (disaster prevention, crime
prevention, safety, economic stimulation, etc.).

Department employees coordinated with events held by local groups and governmentorganization, participating whenever possible. This effort helped strengthen personal
relationships with local residents.

TAKUMA CSR REPORT 2017

CSR Activities
for the Future

Review of risk management items in the field, evaluation and improvementof current conditions, and implementation of risk management● Future issues

40

Group 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.

NIPPON THERMOENER CO., LTD.
Established
Businesses
Employees

SUNPLANT Co., Ltd.

(The current name was adopted on April 1, 2005, after the company merged with Ebara Boiler Co., Ltd.)

Established
Businesses

Manufacture, sale, engineering, and maintenance of a wide range of boilers
and related equipment
395 (as of March 31, 2017)

Employees

August 1, 1961

President andRepresentative Director
NIPPON THERMOENER CO., LTD.

Keiki Kamada
President
SUNPLANT Co., Ltd.

Takuma Technos Co., Ltd.
Established September 27, 1967
Businesses Maintenance, management, and operation of waste treatment facilities,
water treatment facilities, industrial waste treatment facilities, boiler
facilities, power generation facilities, and other buildings
Employees 1,523 (as of March 31, 2017)

Kazunori Tsuji
President
Takuma Technos Co., Ltd.

41

TAKUMA CSR REPORT 2017

● Message from the President
Local government agencies in 59 communities throughout Japan entrust us with theoperation and management of their waste incineration, bulk waste treatment, recycling,
and other facilities. We maintain a worksite, branch office, field office, or administrative
office at each of those sites so that we can provide safe and secure service at all hours.
As a company that’s responsible for one aspect of government service and one that’s
engaged in business activities that are intimately related to the lives of community
residents, we realize that our mission is important, and we are confident that we canincrease our corporate value by carrying that mission out in a reliable manner.
Our executives and employees come together to ensure that everyone who is involved
with the company is satisfied. We emphasize the need to improve compliance and CSR
awareness, and we offer a systematic program of education and guidance in order toensure that attitude permeates every aspect of our organization. Going forward, we willcontinue to strive to become a company that can achieve sustained growth by makingsocial responsibility a core part of our approach.

● Message from the President
We’ve been involved with environmental optimization in the full range of building types
through the design and construction of air conditioning, water supply and drainage, andother equipment.
Rock-solid legal compliance is one of the CSR issues that we must fulfill as part of the
Takuma Group. We strive to observe all laws and regulations related to our operations, toengage in fair competition, and to operate in a fair and just manner. A second CSR issue
involves strengthening risk management. In addition to reliably carrying out technical patrols
to prevent quality-related accidents, we strive to ensure that all employees report relevant
information and communicate and consult with their colleagues and that issues are dealt within a timely manner. A third CSR issue is dealing with overwork. Overtime work for extended
hours has become the rule in the construction industry, and that trend is having an adverse
effect on healthy family life. It’s also had a major impact on our personnel planning, and we
can no longer afford to overlook it. We’re working to create a workplace environment inwhich employees can balance the competing demands of their jobs and their personal lives.
An accurate understanding of the legal system is necessary in order to address these issues.
Going forward, we will work to acquire legal knowledge and to ensure that a commitment tocorporate ethics permeates our organization.

CSR Activities
for the Future

Masato Fujita● Message from the President
Our management principle is “Service to the nation through boiler manufacturing,”
and we are committed to enriching all stakeholders in accordance with that principle.
Our vision calls on us to become a leading company in the public thermal energy sector,
and we define “leading” in this context in terms of thermal output and our ability to
reduce CO2. In short, our corporate activities are themselves CSR activities.
Thanks to support from our stakeholders, we have delivered close to 100,000 boilers
nationwide to date, and most of them remain operational today. Consequently, ourcustomers have a broad array of needs, and our products go beyond boilers to include
chemical agents and maintenance service. As a result, partnerships with numerous
stakeholders, including employees and business partners, play an extremely importantrole in our ability to offer fast, precise service. To enrich our customers and indeed all
stakeholders, we believe enhancing CSR activities is directly related to the company’s
continued evolution, and all of our employees will continue to come together to pursuethat goal.

September 15, 1941
Design, construction, and superintendence of air-conditioning
equipment, feed-water/drainage sanitation equipment, and electricalequipment
104 (as of March 31, 2017)

Dan-Takuma Technologies Inc.
Established
Businesses

Employees

August 21, 1969
Supply and maintenance of clean equipment, systems, and other products
for customers in the electronics and precision machining industries,
particularly the semiconductor industry in Japan and overseas
70 (as of March 31, 2017)

Chiaki Nagahama
PRESIDENT & CEO
Dan-Takuma Technologies Inc.

● Message from the President
We supply an extensive range of new products while carrying out the importantmission of creating a clean environment, which is an essential task in the electronics andprecision machining industries, by drawing on technology and experience gained insemiconductor-related industries over many years. As you know, semiconductor andelectronic devices are widely used in a broad range of industries, products, and social
systems, and they play a vital role in contemporary life. We help maintain the advanced,
clean environments used in production of these semiconductor and electronic devices
and improve rational productivity that helps solve global issues involving the environment
and energy resources while achieving a rich, safe, and secure society by supplying clean
devices and systems. We’re also striving to make an even greater contribution in otherfields that require a clean environment, including medicine and food products, based on
our accumulated technology and experience.
As part of the Takuma Group, which is a manufacturer of environmental and energy
plants, we work with customers to make a broad contribution to the resolution ofproblems involving the environment and energy resources in Japan and overseas bysupplying clean-running equipment and systems.

TAKUMA CSR REPORT 201742

Group Company CSR Activities
Spreading Takuma’s Company Motto and Management Principles among overseas
Group companies
To spur shared understanding of the Takuma Group’s basic approach, we have prepared Chinese and Thai translations of
key documents such as the Company Motto and Management Principles for overseas Group companies in order to deepen
local employees’ understanding of these important guides.
The Takuma Group will continue to cultivate a healthy and robust corporate culture throughout the Group going forward.

■ Takuma Group corporate policies● Chinese edition

This page introduces feedback from overseas Group company employees who have read the Takuma Group’s corporate
policies in their own language.

Taiden Environtech Co., Ltd. (Taiwan)
VOICE

Helping maintain and manage waste
treatment facilities in Taiwan

Chien-Lung Shen
President

Taiden Environtech Co., Ltd. has worked to protect and improve the environment in Taiwan as part of the Takuma
Group since its establishment in 1988. Four plants built by Takuma in locations such as Taipei together process morethan 4,000 tons of municipal solid waste per day. We’ve earned high praise for our earnest approach to maintaining
and managing these plants, and we’re currently offering similar services at other facilities as well. We strive tofacilitate the company’s development while satisfying all stakeholders, and in so doing to help protect the local
environment, by proposing equipment maintenance and construction plans that take the local environment into
consideration and by providing safe, secure products and services. Going forward, I look forward to continuing to
implement and utilize the Takuma Group’s corporate policies through daily operations such as these.
CSR Activities
for the Future● Thai edition

Siam Takuma Co., Ltd. (Thailand)
VOICE

Customer trust is our first priority

Siam Takuma is actively standing at the front of business activity of Takuma. It has
been over 50 years after starting supplying numerous Takuma boilers in Thailand andcustomers rely on Siam Takuma since we opened office in Bangkok.
In responding to the customers we shall present whole necessary information without
delay and do have an efficient strategy growing with the reliance ever. Through handlingenvironmental friendly equipment, the matter of reducing impact on Earth will be our
pride. The extensive experience will always keep customers feel confident in our safety andstable performance even competition is increasing nowadays. At the same time, we also
give appropriate advice on energy use and operating costs creating full satisfaction.
Above all, our boiler technology is particularly designed to generate lower carbon effectto the society and environment than those of others in term of pollution.
Besides that, we realize to be a giver to our society by donating old or unused officeequipment to temples or poor people as for recycling. We are, therefore, contributing toSociety through our businesses and products under clean energy. Customers, Society andEnvironment are the keys for the development in our service, and Takuma Group Ethics
Charter and Code of Conduct, etc. should be our underlying principles for our businessactivity.

43

TAKUMA CSR REPORT 2017

Pornpetch
Petchsuwannakit(Joy)
Manager
General Affairs Section

TAKUMA CSR REPORT 201744

Corporate GovernanceCorporate GovernanceInternal Control

As of June 28, 2017, the Board of Directors wascomprised of six directors (excluding directors who aremembers of the Audit & Supervisory Committee) and four
directors (of whom three were outside directors). The Boardof Directors meets regularly once a month as a rule andwhenever else it is necessary to make decisions about
important issues related to business management andissues established by law and ordinances, as well as tooversee the execution of the directors’ duties.
In order to accelerate management decision-making andclarify where management responsibilities are placed, we
have adopted an operating officer system in which we
appoint operating officers who are entrusted with the
responsibility of executing our business activities. As of June
28, 2017, there were 14 operating officers (including those
who also serve as directors). Moreover, we have also established an Executive Execution Committee, which is chairedby the president/chief operating officer, as an organizationthat deliberates matters that are brought up at meetings ofthe Board of Directors and other important issues related tothe execution of our business activities. This committee
communicates and provides direction about items decided
by the Board of Directors and other important items related
to the execution of our business activities appropriately tothe 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 thoseof the Board of Directors and the Executive Execution
Committee, and they strive to understand and observe thestatus of business execution in a timely and appropriatemanner. Drawing on their professional background andexperience, they express their opinions as necessary from an
objective perspective, and they conduct strict auditing of
the business execution performed by the directors.
To facilitate the effectiveness of audits carried out by the
Audit & Supervisory Committee, the president holds regularmeetings with committee members to ensure goodcommunication, and we have established an Audit &Supervisory Committee’s Office to provide staff to help
carry out the committee’s work.
In addition to the above, we have established a Human
Resources & Remuneration Advisory Committee comprisedof independent officers, representative directors, and theofficer in charge of human resources. The committee works
to increase transparency and objectivity in the selection ofcandidates for director and operating officer positions andin the determination of compensation as well as toenhance the supervisory function of the Board of Directors.

Appointment
and removal

Appointment
and removal

Reporting

Auditing andsupervision

Board of Directors

Reporting andstatement ofviews

ReportingAppointment
and removal

Reporting

Reporting

Audit & Supervisory
Committee

Accounting Auditors
Cooperation

AdviceSelection,
dismissal,
andAppointment supervisionand removal

Assistance

Recommendations

Discussion
andHuman Resources &reporting

Remuneration
Advisory Committee
Cooperation

Representative
Directors
Committee of
Executive Officers
Deliberation of(important matters)
Issuance of
instructions andcommunicationof information

Discussion ofand reportingon importantmatters

Auditing ofaccounts

Audit & Supervisory
Committee’s Office

Reporting

ReportingInternal Auditing
Department

Internal auditing

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
once a quarter, with educational training aiming at thepermeation of compliance and CSR in each department.
After departmental meetings, promotion members implement compliance and CSR promotion education in theirrespective departments using training materials or in-house
educational materials and report the result to the Secretariat.
(Details of the compliance and CSR promotion education
implemented in FY2016 can be found on page 59.)
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
Variouscommittees

President

Compliance & CSR
Promotion Division

Committee of Executive Officers
Compliancep& CSR Promotion Organizationg

Chairman (Executive Manager of the Compliance & CSR Promotion Division)
Secretariat (CSR Department)
Education,
instructions,and reporting

Takuma Group
Coordinating Committee forCompliance & CSR Promotion

Each division andcenterCompliance & CSR Promotion Administrator (division or center manager)

Executive Officers

Observing
and guidanceEach department

Compliance & CSR Promoters (department manager)

Execution of
responsibilities

Enlightenment/education

Staff members

Divisions and centers

Corporate governance structure
TAKUMA CSR REPORT 2017

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 purpose of enabling
compliance and CSR to concretely permeate company-widethrough 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 each division, center, anddepartment.
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.

ReportingInternal auditing

45

Compliance & CSR Promotion Structure

Auditing
Reportingoccurs, emergency headquarters are established with thecompany president as the director in charge of risk
management, and an organization is put in place in orderto minimize and prevent further damage through prompt
action.
In this way, we are working to ensure thoroughcompliance while carrying out business properly andefficiently while also deepening risk management.
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.

Corporate
Governance

General Meeting of Shareholders

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 chargeof each risk, and we set up our risk management
organization according to that Code. When the unexpected(As of June 28, 2017)

Compliance & CSR promotion structure
TAKUMA CSR REPORT 201746

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 the risk management organization shown below and constructing a system of risk management andpromoting the strengthening of management for group companies as well through our Takuma Group Coordinating
Committee for Compliance 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 group’s 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 tomaximize returns while minimizing the negative impacts of risk.

Risk Management Policy
Risk Management CodeCrisis Management CodeOverseas Risk Management CodeDisaster Prevention Management CodeFire Prevention Plan

∗Based on Fire Service Act Enforcement
Regulations

Earthquake Countermeasure Manual

BCP activation

Storm and Flood Damage Countermeasure Manual

Corporate
GovernanceRisk 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, andwe work 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.

Business Continuity
Plan (BCP)

Novel Influenza Countermeasure Manual
Safety Confirmation System Administration Rules

ReportingpgPresident
Committee of
Executive Officers

Board ofDirectors

Request for
decision/
reporting

Evaluation
Report oninternal
controlevaluation
concerning
financialreporting

Request for
decision/
reporting

Reporting

Reportingpg
Risk Management
Department

Internal Auditing
Department

Planning/
reporting

Risk Management Code, Crisis Management Code
Project Risk Management CodeDBO Project Risk Management CodeRisk Management Code for DBO Project Operation,
Maintenance and ManagementgProject risk
DBO Project risk
DBO Project operation, maintenanceand management risk
Actualized risk

IR Activities
Risks
concerning
corporate
activities

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

Potential risk

Individuals,
others:10.7%

Financialreportingrisks

Evaluation

Other
corporationsin Japan:
15.0%

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

Financial
institutions andstock brokerages:
46.9%

Group
companies

Foreignindividuals:
27.4%

Shareholders Report∗ Excluding treasury stock

Composition of shareholders (as of March 31, 2017)

Risk management structure

47

TAKUMA CSR REPORT 2017

TAKUMA CSR REPORT 201748

Corporate GovernanceDirectors and Executive Officers(as of June 28, 2017)

Directors

Executive Officers

Ryoji Tani

Norito Uchiyama

Managing
Executive Officer

Executive Officer

Executive Officer

Masahiko Izumi

Yoshiki Kita

Mitsuaki Adachi

Executive Officer

Executive Officer

Executive Officer

Hideki Takeguchi

Akira Taguchi

Hidetoshi Tomita

Director
Executive Officer

Executive Officer

Executive Officer

Corporate
GovernanceTakashi Manabe(Back row, from the left)

Minoru Murata

Hiromichi Satake

Koji Tanaka

Tsuyohito Nishiyama

Outside Director
Audit & Supervisory
Committee Member

Outside Director
Audit & Supervisory
Committee Member

Director
Executive Officer

Director
Executive Officer

(

)

(

Osamu Iwahashi
Outside Director
Audit & Supervisory
Committee Member

(

)

)

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

49

TAKUMA CSR REPORT 2017

Kengo Numata

Takaaki Kato

Hiroaki Nanjo

Director
Senior Managing
Executive Officer

Representative Director
President andChief Executive Officer

Director
Managing Executive Officer

TAKUMA CSR REPORT 201750

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.

● 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
11. Safe work environment

Our company sets “establishing a work environment allowing each employee to challenge their goals, as well as getting onwith their work through appropriate assessment” as its basic policy. Specifying the following three approaches as criticalitems, we introduce various systems for each.

1 Increase employee motivation by ensuring transparency as well as satisfaction withHR assessments

We have created a work group transfer system tofacilitate movement from clerical and labor positions to
the main career track so that motivated and skilledemployees can pursue success regardless of their genderor academic background. We also provide opportunities
for employees to be promoted to management positions.

● In-house commendation system

Every year on the anniversary of the company’s founding on June 10, we recognize employees with the following awards:• Takuma Prize∗• Invention and idea commendations• Safety and Health Award in Construction Division• Qualifications acquisition commendations• Takuma Technical Review Outstanding Paper Award• Years-of-service commendations∗ The Takuma Prize is awarded to
employees who have demonstrated outstanding achievementsin their work or in their efforts onbehalf of society outside of work,
including lifesaving, disaster prevention, and volunteer service.

2 Provide capacity building assistance to employees● Junior employee exhibition

As a part of the education of our junior staff, ten-yearcompany employees give presentations that reflect on
their experiences and indicate the future growththat they are looking for,and second-year employees
hold technological exhibitions in order to improvetheir ability to make presentations.

● Technical training sessions

We hold technical training sessions to provide
opportunities for employees to increase their technicalknowledge. These events range from inviting outside
researchers or university professors to give lectures tohaving employees in technical positions give presentations on issues on which they are currently working.

51

TAKUMA CSR REPORT 2017

Takuma offers the following programs in order to help employees harmonize their jobs and private lives, balance theirwork and child-raising responsibilities, and make the most of their skills and abilities:• Paid time off in half-day increments• Childcare leave• Nursing care leave• Discretionary work
• Flextime∗• Telework● English education support

We periodically administer the TOEIC test at thecompany to help employees improve their language skills.
Employees who earn a high score are eligible to receive abonus from the company.

● Support for self-study

Takuma encourages employees to acquire various
licenses and certifications as part of the skill development
process, for example by reimbursing them for the cost of
testing needed to earn official certifications and licenses
that are necessary for operational reasons and offering
incentives for successful completion of such tests. We
also provide information about a range of distancelearning and e-learning opportunities.

● Grade-specific educational programs• New employee training• General employee training• Line manager training

Takuma carries out the following health management measures:• Improvement program for lifestyle-related diseases• Lifestyle-related disease prevention checkups• Mental health measures• Health consultations• Dissemination of health information (in-house newsletter and website)• Wellness Fair (cosponsored with the Health Insurance Union and cafeteria operator)● Labor-management relations
The labor union is an organization which conducts periodic deliberations and collective negotiations in terms of annual
salary, working hours and other working conditions and establishing a stable employee-employer relationship.

● Initiatives to create a workplace environment where employees can more easily taketime off
We are working to create a workplace environment where employees can more easily take time off by planning their
desired vacation dates, making those plans known to their coworkers, sharing associated information, and offering
each other support.

● Initiatives to promote the participation of female employees in the workplace
In March 2016, Takuma adopted an action plan with the goal of doubling to 20 the number of female employees incore and general management positions by March 31, 2021, and we are pursuing the following initiatives to achieve thatgoal:

Human Rights andLabor Practices● Work group transfer system● Work-life balance● Employee health management

Approaches toward employees

We utilize an objective management system in which
work objectives are set at the beginning of the fiscal year
and the degree to which they are achieved is evaluatedat the end of the fiscal year. The objectives, which are
based on company policies, are decided throughmeetings and interviews with superiors to include thework tasks that each individual is to undertake over theyear and the roles they are expected to fill.

tasks without anxiety∗ The Flextime program has been expanded to cover employees raising children up to the end of third grade in order to make iteasier for them to balance the competing demands of work and raising children.

Working with Our Employees● Objective management system

3 Improve the work environment, facilitating employees’ efforts to address business• Female employees hold talks to paint a picture of what it’s like for women towork at Takuma, and there is information about those talks on the website.
[Takuma top page > New-graduate hiring information >Takuma jobs and employees > Talks by female employees]
http://www.takuma.co.jp/recruit/newgraduates/work/talk.html(content in Japanese)• We hold company information sessions for female students, and we provide opportunities for students to talkdirectly with female employees of Takuma.

● Other enhancements to workplace environments• Measures to counter sexual/power harassment• Listening to opinions within the company∗∗ To enhance ideal working conditions for employees, our company absorbs a wide range of views from employees by placing an“opinion box,” as well as communication via e-mail and telephone concerning their working environments.

● Cafeteria plan
We offer a “cafeteria plan” as an employee benefit program as part of our effort to meet the full range of diverse
employee needs. Employees can choose from a menu of programs including support for skill development, child-raisingand nursing care, and health maintenance and promotion. The company then reimburses them for the cost of using
those services, subject to an annual cap. The selection of programs is reviewed on an ongoing basis.

TAKUMA CSR REPORT 201752

Human Rights and Labor Practices

Efforts for Occupational Safety and HealthOccupational safety and health initiatives

Safety and health education (education for construction site representatives)

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 thatamong 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 Takuma’s safety and health isparticularly noteworthy.
We have adopted the following safety and health objectives for FY2017: 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 achieving at least 90% of the objectives set forth in the safety patrol
plan; and for the Safety and Health Cooperative Association, strengthening collaboration with partner companies. We will
work to revitalize safety and health activities throughout the company by carrying out that role.
Instead of resting on our laurels, we will redouble our safety and health activities going forward with a focus on each andevery employee so as to ensure that all workers are aware of the vital importance of Takuma’s philosophy of respecting
people, which forms the foundation of our safety and health policies.

We continuously provide specialized safety and health education at branches andworksites to increase the levels of safety awareness and knowledge of our employees
and partner companies. As indicated below, more than 14,000 trainees have passed
the completion exam. We are involved in a variety of initiatives to put in placemechanisms 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, 2017
Cumulative number of trainees: 30,743
Number of trainees passing the completion exam: 14,639
Education for construction site
representatives■ Message from a partner company

Safety and health activities and their results
1. Safety inspection system
We maintain a system where any construction or installation work starts only after
the safety and health manager or other responsible official in each department
conducts a successful safety inspection based on safety and health plans for theconstruction or installation work as prepared by our primary partner companies.
We strive to ensure a safe work environment at all construction sites by eliminating
potential hazards and risk factors identified by those inspections before work begins.
• FY2016
Number of safety inspections done: 159(Initial inspection pass rate: 93%)

Mr. Takeshi Ito
A safety inspection

2. Safety patrols and field education(From a Takuma construction site representative)

Safety patrols and field education

Takuma’s safety results in recent years
Despite a tight labor market in the construction industry nationwide, business continued to be brisk in 2016. We saw oursafety track record improve from the dip in performance that occurred in 2015 as a variety of safety and health activities
began gradually to bear fruit. Nonetheless, we will not rest on these accomplishments, but rather will work to ensure evenmore thorough risk management, to strengthen and enhance our safety and health management system, and to redouble
our resolve to eliminate occupational accidents.
3.86

15

2.79

Number ofcasualties(persons)

2.75

10

11

1.44
5

4
0

0.08
2012

1.13
0.37
1

3

2013

2014

0.02

0.03
2015

Takuma’s safety results
53

TAKUMA CSR REPORT 2017

4.0

Takuma’s
accident
frequency
2.0 rate
and0.80 1.0 severity
rate
3.0

3

0.0

2016 (Year)

Human Rights andLabor Practices

Based on an annual plan, safety patrols are carried out at worksites by the Safety and
Health Committee (comprised of 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 fieldeducation, these activities help ensure the safety of Takuma’s workplaces.
• Number of safety patrols implemented in FY2016
By Safety and Health Committee (members, advisors): 51
By Safety Control Department: 342
By construction division: 310

Site Manager
Kizugawa OfficeKansai Branch, West Japan
Regional Headquarters
Nishimatsu Construction
Co., Ltd.

Thanks to Takuma’s education for construction site representatives, we learned that themission of such representatives is to ensure safety and health at companies by raising thelevel of safety in order to create a healthy workplace environment in accordance with
Takuma’s commitment to respecting life and health to create a healthy workplaceenvironment. Our site foremen have also received that education, and all of our branchcompanies now understand the importance of SSAs, although they were a little confused
at first. It is clear now that the lesson is the same as what our predecessors used to teach,that preparation is 80% of the job, and indeed those measures provide a useful way toensure safety in advance. I think that good communication among foremen and anunderstanding that safety is a priority that must be pursued actively are bringing optimismand motivation to the workplace environment.
Furthermore, Takuma’s site safety patrols have provided education and guidance on
how to enhance safety equipment so that it can withstand human error while raising
employees’ safety awareness so that such errors will not occur. We’re extremely gratefulthat those inspections have also served to cultivate autonomy on the part of workers andenabled worksites as a whole to think seriously about safety.

Year

Accident Accident
frequency severity
rate
rate

2012

0.83

0.05

2013

1.25

0.23

2014

0.91

0.07

2015

0.92

0.21

2016

0.64

0.11

∗ 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
× 1,000,000
Total actual working hours

Because Takuma chooses the primary contractor when it’s the prime contractor but notsecondary or subsequent contractors, we’ve adopted a system in which we haveconstruction site representatives pass on our approach to safety and health to foremen(safety and health managers). If this education leads site workers to recollect what Takuma
says about safety and health issues and therefore empowers them to nip hazards in thebud, we will consider it to have been successful.
Your company was confused about SSAs at the start of work at the site, and you asked
many questions before you finally became convinced of the effectiveness of that approach.
However, I’m extremely grateful that now you create samples yourselves and explain thesystem to other companies. You’ve proposed and organized foremen’s meetings, and yourbelief that site personnel, particularly foremen, must play the lead role in safety andenvironmental issues is apparent. I can understand why our safety patrols always praise
the Kizugawa construction site for its clean and organized appearance.
In closing, let me mention that I find many aspects of your safety management systeminteresting and look forward to managing sites with you again in the future while learningfrom one another.

Tatsuya Kawamura
Site Manager
Kizugawa Construction Site
Takuma Co., Ltd.

∗ Accident severity rate

Indicates the seriousness of accidents as thenumber of work-days lost per 1,000 actual
working hours.
Total work-days lost
× 1,000
Total actual working hours

Reference: Nationwide accident frequency and severity rates
for the construction industry (general construction)
TAKUMA CSR REPORT 2017

54

The Environment
Basic Environmental Policy

Takuma’s 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!

Environmental Philosophy

In 1 year,
uma products
p
produ
du
TakumaTakuma is committed to preserving the environment and realizing an affluent society
through business activities under the Company Motto: “Value Technology, Value People,
Value the Earth.”

abouttOperational Guidelines

cut

5

milliontons!

(Equivalent to the CO2 absorbed
by about 350 million Japaneseedar tre
ee ∗)
cedar
trees

1. All Takuma Group companies will recognize the importance of maintaining a balance between
preservation of the environment and business activities.
2. Continuously develop activities to preserve the environment that comply with applicable environmental laws and ordinances, and ensure environmental control and assessment systems conformto international environmental standards.

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

3. Promote development of improved technologies and products for society that preserve theenvironment.
4. Address resource conservation, energy efficiency, recycling, and minimization of waste generated
by all business activities.

Reducing CO2 with biomass power generation boilers
rss

5. Improve employee awareness and understanding about the importance of preserving the environment through environmental education and internal promotional activities.

A classic example of biomass power generation can be found in sugar factories.
Factories that make sugar produce large quantities of residue from sugarcane, the raw
material used to make sugar. Sugarcane is crushed into a pulp, and sugar is extracted ina mill. The remaining fiber is called bagasse and can be used as boiler fuel. The steam
produced is used as the plant’s heat source, and any remaining steam is used togenerate electricity that is utilized to operate the plant and, if any remains, sold to theelectric power company. The amount of power generated at sugar factories has grown
greatly, with examples of single plant that generates 50,000 kW.

6. Provide the community with information on the activities of Takuma to preserve 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 groupcompanies Nippon Thermoener Co., Ltd., Takuma Technos Co., Ltd., and Dan-Takuma Technologies Inc. have also acquired
ISO 14001 certification.

Wood
chips

4

milliontons!

CO2 reduction achieved by
Takuma’s biomass power
generation boilers(as of end of FY2016)

EnergyPalm
Bagasse kernel
shellsBiomass is any recyclable organic material derived from a livingorganism, but does not include fossil fuels, such as oil and coal. For
example, even though CO2 is emitted if wood waste products areincinerated, when trees grow again, they absorb CO2 to offset theemissions from incineration, so there is no increase in CO2 in theatmosphere. By using the heat produced by incinerating biomass togenerate power, the amount of power generated using fossil fuels
can be reduced, and this contributes to decreasing CO2.

CO2 reduction from waste incineration plants
Garbage, or waste, is an important source of energy. About 500 kW∗∗ of power canbe generated from one ton of garbage. In Europe and the Americas, waste incineration
plants are often called Energy from Waste (EfW) plants, and recovering energy fromgarbage has become the norm. Waste must be seen as a “resource,” so Takuma isseeking 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

TAKUMA CSR REPORT 2017

about

What is biomass?

Biomass-fueled power
generation boiler

55

down

The Environment

Environmental Management

In 1 year,

Waste
combustion

In 1 year,

down

about

1

milliontons!

CO2 reduction achieved by Takuma’smunicipal solid waste incineration
plants and industrial waste
incineration plants(as of end of FY2016)

About
500 kW of
power
generated

TAKUMA CSR REPORT 2017

56

The Environment

Environmental Reporting

Environmental accounting

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 businessactivities from an environmental standpoint, but also information about related economic and social aspects of those
activities.

Environmental data (non-consolidated)● Total energy consumption(Tons-CO2 per year)(GJ per year)

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

6,000

80,00040,0000● Environmental conservation cost

● Greenhouse gas emissions

120,000

2012

2013

2014

2015

2016

4,000

Item

2,000

0

(FY)

2012

2013

2014

2015

2016

(FY)

The total energy consumption of the fuel and theelectricity consumed at Takuma during FY2016 rose slightly
compared to FY2015 levels. We will continue to promoteenergy savings from here on out.

The greenhouse gas emissions created by our company
are limited to carbon dioxide (CO2). The amount of CO2
emissions in FY2016 rose slightly compared to FY2015
levels. We will continue striving to reduce CO2 emissions.

● Waste generation● Water usage

600(m3 per year)(Tons per year)

Waste generation
Recycling
Final disposal treatment

300

2012

2013

2014

2015

2016

30,000(FY)

Our company sells recyclables and reusables from thewaste 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 accordance with the Industrial Waste Control
Manifest system.

2012

2013

2014

2015

2016

(FY)

Takuma’s water consumption during FY2016 held steadyat FY2015 levels. Going forward, we will continue to work
to lower our water use.

PRTR target substance emissions
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.

● Dichloromethane (CAS No. 75-09-2)
FY
Emissions(tons per year)

2012
0

2013
0

2014
0.3

2015
0.4

● Toluene (CAS No. 108-88-3)
2016

FY

0.4

Emissions(tons per year)

2012
0.05

2013
0.08

2014
0.08

2015
0.26

2016
0.09

● Xylene (CAS No. 1330-20-7)
FY

2012

2013

2014

2015

2016

Emissions(tons per year)

1.8

1.4

3.4

2.2

2.9

1,610
4,754
—
—
36,866—43,230

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

Item
FY2015FY2016(1) Environmental conservation effect concerning resources input
for business activities
Total energy input (GJ)
92,458
101,684
Water resources input (m3)44,34250,584(2) Environmental conservation effect concerning environmentalloads and wastes created by business activities
Greenhouse gas emission volume (tons-CO2)
4,337
3,883
Waste generation (tons)
976
834
Final disposal volume (tons)
163
77
Total drainage volume (m3)48,29942,482
BOD emissions (kg)
2,720
2,273
COD emissions (kg)
2,898
2,443
T-N emissions (kg)698
626
T-P emissions (kg)119
111

TAKUMA CSR REPORT 2017

● Period covered:
April 1, 2016, to March 31, 2017
● Companies targeted[12 domestic companies]• 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
Even as total environmental impacts must be reduced, it isnecessary from a business management standpoint to pursue
environmental initiatives that are characterized by a high degreeof 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 FY2016, this value declined compared to FY2015.

The Takuma Group’s definition of environmental efficiency
Consolidated net sales (million JPY)
Greenhouse gas emissions (tons-CO2)

57

17,51823,96812,524
46,386
1,675,842
3,377
1,779,615

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 associateddamage, and initiatives to aid in the same.

60,0000

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

Costs
(thousand JPY)

Scope of data collected

The Environment

0Investment(thousand JPY)

● Environmental conservation effect90,000900

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 pursuingenvironmental 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, and we have been implementing approaches toward such issues within the Takuma Group.

40
29.12

30
21.04

22.46

24.42

26.82

20

10

0

2012

2013

2014

2015

2016 (FY)

Environmental efficiency

TAKUMA CSR REPORT 201758

Fair Business Practices
Compliance/CSR Promotion Education

CSR Awareness Survey

Takuma offers compliance and CSR promotion education through the Compliance & CSR Promotion Organization (seepage 46), which was established in order to spread awareness of compliance and CSR issues among employees.
During FY2016, we implemented education focusing on compliance and CSR promotion in four separate stages (seebelow) 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 our priorities of cultivating a robust corporate
culture, accommodating environmental change, and practicing risk management as set forth in the Compliance & CSR
Promotion Division’s medium-term plan under the 11th Medium-Term Management Plan.

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 year’s 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
ongoing basis.

1st term: Insider trading

2nd term: Corporate scandals

We offered education to prevent insider trading,
addressing such topics as the definition of insider trading,penalties imposed in response to violations, example
violations, and Takuma’s rules on the subject.

This program introduced recent corporate scandals,
many of which have been coming to light recently;
explained the importance of compliance, mechanismsthat lead to scandals, and measures for preventing them;and raised awareness in order to prevent them.

3rd term: Overview of security export controls;
measures to prevent maternity harassment,paternity harassment, and care harassment

4th term: Business continuity planning (BCP);
Forward-looking CSR activities:
CSR issues and action programs

We offered an educational program addressing security
export controls, including their purpose, examples ofviolations and associated penalties, and internal export
control-related operations and associated procedures.
We also offered education about maternity, paternity,and care harassment in response to the announcement ofrevisions to Japan’s Act on Securing, Etc. of Equal
Opportunity and Treatment between Men and Women in
Employment and the Act on Childcare Leave, Caregiver
Leave, and Other Measures for the Welfare of Workers
Caring for Children or Other Family Members. In addition
to the specific provisions of the revisions in question, theprogram addressed topics such as problematic behavior
and Takuma’s approach to dealing with related issues.

We offered education about business continuity
planning (BCP) based on the results of the FY2016 CSR
awareness survey that was conducted during the thirdterm.
We also offered education about forward-looking CSR
activities and conducted a self-assessment of our implementation of FY2016 action programs as planned byeach department.

We hold regular training sessions about the Antimonopoly
59

TAKUMA CSR REPORT 2017

Response

Consultation
or report

Outside report contact(Anonymous e-mail)Law officeCompliance & CSR Promotion Division(Investigation and response)

Act to deepen participants’ understanding of the act and toascertain the latest information about it.

● Introducing a Legislation Alert Service
In order to allow its employees to gain a continuous
grasp of the latest information on revised laws and ordinances, Takuma introduced a Legislation Alert Service. In
this system, legislation alerts highlighting changes to 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 systemlets users search for legal precedents and public comments
to facilitate an even greater understanding of relevant laws
and ordinances.

Takuma carries out procurement activity in accordancewith its Material Procurement Policy.
We provide fair opportunities for all suppliers,
irrespective of nationality, company size, or transaction
history. Suppliers are selected based on our comprehensive
evaluation of their reliability and safeness in terms of
quality, price, delivery, etc., as well as their abilities intechnological development and supply capabilities.
Long-term stable transactions with dependable suppliers
result in improved product reliability and greater corporate
value. We, therefore, seek to establish relationships of
mutual trust and mutual development with our suppliers.
While also respecting relevant laws and regulations aswell as social norms, we strictly control and maintain any
confidential information that we obtain through ourbusiness transactions.
Takuma procurement procedures and required items areposted on the following website.

Material Procurement Policy
1. Treat all candidates fairly when selecting a supplier.
2. Strive to discover new manufacturers.
3. Strictly control confidential information.

Fair Business
Practices

Compliance Measures● Holding training sessions about the Antimonopoly Act

Persons seeking consultation or making reports

Material Procurement Policy

In November 2016, we invited attorney Izumi Sato, who is an expert on environmental issues, to give a lecture for management-level employees entitled “Takuma’s
Environmental Business, Compliance, and Risk Management.”
In her talk, which was extremely useful for participants as they prepared to chart the
future course of Takuma’s environmental business, Ms. Sato addressed current trends
with regard to environmental issues, revisions to environment-related laws andregulations in Japan, examples of instances in which those laws and ordinances havebeen violated, and the future direction of the environmental business.

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 Competitors’ 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.

Takuma has been operating an in-house reporting
system since FY2006, with the aim of promoting compliance management 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 employees with information on the reporting contacts andregularly publicize the system.

In-house reporting process● CSR lectures for management-level employees● Initiatives to ensure compliance with the Antimonopoly Act

In-house Reporting System

4. Strive to acquire new and pertinent information.
5. Promote green procurement.
6. Comply with laws and ordinances related tobusiness dealings.
7. Always keep VA and VE in mind.
8. Strive for self-development.

[Takuma website > Material Procurement] http://www.takuma.co.jp/procurement/ (content in Japanese)

TAKUMA CSR REPORT 201760

Consumer Issues
Activities Involving Product Quality
In addition to defining our Quality Policy (see below), registering for “ISO 9001: Management Systems” certification(Registration No.: JQA1952), and improving product quality based on our quality management system, we carried out
concrete activities to enhance customer satisfaction. The present status for ISO 9001 certification includes having switched to
ISO 9001:2000 in FY2002 and to ISO 9001:2008 in FY2010, as well as a transition to ISO 9001:2015 that we plan tocomplete in FY2017.

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

Quality Policy

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
their level of satisfaction has indeed improved.
Since the second year, the average score for thesequestionnaires has been 80 points or higher, as shown in
the table to the right. We believe that the rising trend forscores indicates that our initiatives are functioning
effectively.
In this way, we work to improve quality so that all
customers are satisfied.

Number of surveys(Points)
100

Average score

37
90

80.2
80
70
60

83.5 82.3

85.5 85.9 85.8

26

73.4
18

25

16

18

(Surveys)40

87.7 88.2 86.8
30

27

27
23

20

19

10
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 (FY)

Number of questionnaire surveys and average score

Manufacturing products that result in customer satisfaction■ Message from a customer
In order to produce products that customers truly appreciate, it is necessary not only to boost the quality of the product itself,
but also to improve the content of that work as well as each individual’s ability to create a good product in each process fromplanning up to delivery (planning, development, sales, design, procurement, manufacture, construction, and management).
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 such measures as improving organizational operations, improving individual employees’capabilities, carrying out internal quality audits, and reviewing quality control and processes.

Priority items• Creating value to earn customer satisfaction (ascertaining customer needs and making improvements based on pastexperience)• 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)

Mr. Kyoji Takahashi
Executive Managing Director& Factory Manager
Sanyo Paper MFG. Co., Ltd.

● Customer satisfaction survey
We have conducted a customer satisfaction survey each year since FY2007 to obtain unfiltered customer feedback concerning delivered products and the level of service provided by Takuma coordinators. We use that information to improve quality.

61

TAKUMA CSR REPORT 2017

Decide where to conduct the questionnaire survey
Conduct the questionnaire survey
Investigate the questionnaire results
Analyze problem factors and investigate
recurrence prevention countermeasures(if results are lower than our standard)(Particularly praiseworthy aspects)
Analyze praiseworthy factors
Apply recurrence prevention measures andpraiseworthy factors across the organization(From the sales manager)

Consumer Issues

The figure to the right illustrates how the survey is 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 thenature of the work performed, suitability of delivered equipment, and the level of service provided by Takuma staff.
Next, the committee calculates a score for each item basedon the survey results as well as a report and explanation fromthe responsible department. The committee then analyzes theresulting data.
If we find a problem, for example an item receiving anevaluation score of less than 70 or a score of 1 (dissatisfied) or
2 (rather dissatisfied) on a 4-point scale, the committee
analyzes the cause of the problem and studies measures toprevent recurrence based on interviews with the department
in question. We also evaluate aspects of our products andservices that receive especially high praise from customers andwork to further enhance customer satisfaction by combining
problem areas and praiseworthy areas and applying themhorizontally across involved departments at the company.

We began studying the possibility of having Takuma build a biomass power plant for us
at the start of 2014 as part of our environmentally responsible fuel conversion business.
We began civil and foundation work for the project in 2015 and then began constructionof the plant itself in 2016. The new plant began operation in January 2017. In this way,
the project lasted about three years.
In studying construction of a biomass power plant, we identified requirements such as
the following after touring numerous such facilities and ultimately determined that a
Takuma progressive stoker furnace would best meet our needs:
1. That site requirements be satisfied
2. That the facility operate in a stable manner since it will also be used to supply heat toproduction equipment
3. That the facility be capable of using various types of fuelAfter starting this study process, we held numerous meetings to flesh out the various
constraints, and we were impressed with how Takuma’s sales coordinators and technicalcoordinators were able to draw on their extensive experience to offer a fast, precise
response based on knowledge and information about past projects. I think the quality ofthat response is apparent in the stability of the facility.
In addition, Takuma was able to complete the removal of plant equipment according toplan despite space constraints. The fact that the new facility is operating in such a stablemanner is a testament to the high level of technical skill that Takuma’s construction site
representatives and supervising engineers brought to the project.

First of all, I’d like to thank you for choosing a Takuma progressive, water-cooled stoker
furnace.
Although the construction process presented a variety of challenges, it is thanks to yourcooperation as well as the cooperation of everyone else who was involved that we wereable to complete the project without any accidents, and I’d like to express my gratitude forthat.
We look forward to working hard to ensure that the facility generates power for the
feed-in tariff program in a way that inspires peace of mind while working withmaintenance department personnel and taking into account the wishes you indicated on
our customer satisfaction survey.

Kentaro Araki
Follow up with recurrence prevention measures
Follow up on results
Customer satisfaction survey process

Manager, Section 1
Plant Sales Department 2
Energy Plant Division
Takuma Co., Ltd.

TAKUMA CSR REPORT 201762

Participation in the Community● Group company activities• Anan High Trust Co., Ltd.

Group company Anan High Trust is striving to open itself to the surrounding community
through a series of initiatives that include cleanup activities in the area around its facilities,
environmental learning sessions and workplace tours held at its on-site management
education center, and a variety of other events.

• Kashihara High Trust Co., Ltd.

Activities by Group company Kashihara High Trust include cleaning and beautifying
nearby roads, weeding in the surrounding area, conducting patrols for illegal dumping,manning a booth at local business meetings, and cooperating with locally held events.

● WFP fundraising activities
Takuma serves on the Board of Trustees of the Japan Association for the World Food
Programme, the official supporting partner of the World Food Programme in Japan.
Each year, we display WFP posters at the entrances to company buildings and in cafeterias
during a campaign that lasts from June through August. The campaign serves both to increase
employee interest in the world’s food problems and to collect donations to address them.
According to the UN WFP, about 800 million people suffer from hunger worldwide. Throughthe Japan Association for the World Food Programme, we will continue to raise funds to help
people suffering from food scarcity.

● 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∗ Activities by Group companies Kurume High Trust Co., Ltd., Hokutan High Trust Co., Ltd., and Suwako High Trust Co., Ltd.
are introduced in the “Striving to Coexist with Local Communities” feature on pages 17 to 22.

Takuma donates unused calendars to a calendar market sponsored by the NPO “Nippon Volunteer Network Active inDisasters.” In FY2016, we donated more than 100 calendars. The proceeds are used to provide aid for victims of natural
disasters and other crises.

● Publications• Publication of the Takuma Technical Review

Contribution to Society

We publish the Takuma Technical Review twice a year to introduce technologies that
Takuma has developed. Contents in FY2016 included a report on research into sewage
sludge incinerator, a report on the operation of biomass boiler power generation facilities,
a report on the operation of waste incineration facilities, a report on a survey of overseas
recycling facilities, and introductions to new products. Abstracts are available on Takuma’s
website.
[Takuma top page > Technical Information > Technical Review]
http://www.takuma.co.jp/english/gijutu/gihou.html● Contribution to society• Takuma Group coordinated cleanup activities

The Group participated in an initiative to clean up the area around its worksites tocontribute to the local community and beautify the surrounding environment. Each year,
the entire Group participates on a volunteer basis. During FY2016, a total of 534 employees
participated in two cleanup initiatives, one in May and June and the other in September.
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.

• Publication of Air Pollution Prevention Technology

The Takuma Environmental Technology Society, which consists of Takuma employees
who are experts in the field, published Air Pollution Prevention Technology in April 2016.
The book presents its subject matter using plain language and extensive pictures anddiagrams so that it will be accessible to general readers with an interest in preventing
pollution while simultaneously serving as a reference for engineers and students in related
fields.

• Participation in the “Osaka Marathon ‘Cleanup’ Campaign”

In October 2016, volunteers from Takuma’s Plant Service Department (Osaka) participated in the “Osaka Marathon ‘Cleanup’ Campaign,” a cleanup activity that is held every
year in Osaka City.
The activity, which brought together organizational, group, and individual volunteers tobeautify public spaces such as roads, promenades, parks, and station plazas throughout
the city, is held every year as part of a tie-up with the Osaka Marathon.

Takuma supports blood donation activities through the Japanese Red Cross Society. Our
Head Office and Harima Factory held spring and autumn blood drives, and President Kato
participated. During FY2016, a total of 177 employees took part in the campaign. Harima
Factory has cooperated with the Japanese Red Cross Society’s blood drives for many years,
earning it a letter of appreciation from the organization’s Hyogo Branch. Donors cansimultaneously register as bone marrow donors, and this year nine employees did so. We
plan to continue this activity in the future.

63

TAKUMA CSR REPORT 2017

• Tour of Kankyo Sol-Tech Co., Ltd.

[Kankyo Sol-Tech Co., Ltd.]In November 2016, Takuma Group company, Kankyo Sol-Tech Co., Ltd., hosted a tour by
35 students of the Osaka Institute of Technology together with the Shirokita Club∗. In
addition to introducing the company, the students learned about instruments used inenvironmental analysis and the processes by which such analysis is carried out. For most of
the visitors, it was their first time to see an analytical laboratory, and they reacted with greatinterest.

Participation in theCommunity /Contribution to Society• Blood donation campaign● Group company activities∗ Shirokita Club: A group of business executives consisting of graduates of Josho Gakuen, which consists of the
Osaka Institute of Technology, Setsunan University, Hiroshima International University, etc.

TAKUMA CSR REPORT 201764

Financial Data
■ Trend in Principal Management Indicators and Other Financial Data

Fiscal year

108th

(

Millions of
yen

109th

)

(

Millions of
yen

110th

)

(

Millions of
yen

111th

)

(

Millions of
yen

112th

)

(

Millions ofyen■ Business performance during the fiscal year under review

113th

)

(

Millions of
yen

113th

) (

Thousands of
U.S. dollars)

End of fiscal year

March 2012

March 2013

March 2014

March 2015

March 2016

March 2017

March 2017

Net sales¥ 101,015¥ 96,384¥ 96,334¥ 103,875¥ 113,088¥ 116,309$1,036,717

Operating income

¥

6,429

¥

6,241

¥

8,424

¥

8,223

¥

9,189

¥ 10,974$

Ordinary income

¥

7,336

¥

7,168

¥

9,449

¥

9,116

¥

9,646

¥ 11,606$ 103,446

Profit attributableto owners of parent

¥

4,212

¥

6,145

¥

8,835

¥

8,030

¥

7,817

¥

8,551

$

76,217

Comprehensive
income

¥

4,935

¥

6,712

¥

9,935

¥

9,398

¥

7,149

¥

9,937

$

88,569Net assets¥ 28,308¥ 34,653¥ 43,889¥ 52,516¥ 58,809¥ 67,727$ 603,682

Total assets¥ 107,028¥ 106,754¥ 108,520¥ 123,127¥ 132,614¥ 140,201$1,249,675

Net assets per share(JPY or USD)

¥ 339.20¥ 415.92¥ 527.50¥ 631.53¥ 708.18¥ 815.77$

7.27

Net income pershare (JPY or USD)¥¥

¥ 106.86¥¥¥ 103.43

$

0.92

50.94

74.32

97.12

94.55

97,815

Diluted net income
per share (JPY or USD)

−

−

−

−

−

−

−

Capital adequacy
ratio (%)

26.2

32.2

40.2

42.4

44.1

48.1

48.1

Return on equity
(%)

16.3

19.7

22.7

16.8

14.1

13.6

13.6

Price-to-earnings
ratio

8.1

7.4

6.9

9.7

10.7

10.5

10.5

Cash flows fromoperating activities

¥

4,565

Cash flows frominvesting activities¥

Cash flows fromfinancing activities¥

End-of-year balanceof cash and cash
equivalents¥ 17,384¥ 26,005¥ 27,030¥ 45,008¥ 48,335¥ 57,132$ 509,247

3,187

3,288

3,315

3,266

3,366

3,447

3,447

Number of
employees¥ 17,465¥

8,270¥ 21,727

¥

6,728

¥

9,590

$

85,483

270

¥

(59)

¥

(1,430)

¥

(160)

¥

(445)

¥

143

$

1,273

(2,494)¥(8,887)¥(5,867)¥(3,707)¥(2,900)¥(1,787)$(15,930)

The Japanese economy continued to recover gradually during the consolidated fiscal year under review as employment
and incomes improved along with corporate revenue and personal consumption. At the same time, uncertainty expanded
overseas due to factors such as slowing economic growth in China and other emerging nations, the UK’s exit from the EU,
and the political situation in the U.S., contributing to an opaque economic outlook.
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 resources and energy;
planned replacement of, and updates to, outdated waste treatment facilities; and energy policies that are favorable forbiomass 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-fueld 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 surged to
191,026 million yen, an increase of 91,106 million yen (91.2%) from the previous consolidated fiscal year.
Thanks to steady progress in construction of projects such as waste treatment facilities and biomass power facilities, salesrose 3,220 million yen (2.8%) from the previous consolidated fiscal year to 116,309 million yen. As a result, the backlog
totaled 214,142 million yen.
Because we pursued cost-cutting measures even as sales grew, gross profit increased despite increases in selling, generaland administrative expenses such as R&D. As a result, operating income was 10,973 million yen, ordinary income was
11,605 million yen, and profit attributable to owners of parent was 8,550 million yen, up 1,784 million yen (19.4%), 1,959
million yen (20.3%), and 733 million yen (9.4%), respectively.
Performance by segment was as follows:(Millions of yen)Segment

Orders received

Sales amountOperating income

Backlog

Domestic Environment and Energy

163,505

90,643

11,726

203,571

Overseas Environment and Energy

3,070

2,222

(154)

2,310

Package Boiler

16,724

17,165916

2,974

Equipment and System Business

8,041

6,666

322

5,326

Sub-total

191,342

116,696

12,811

214,183

(315)

(387)

(1,837)(41)

191,026

116,309

10,973214,142

Adjustment
Total

65

TAKUMA CSR REPORT 2017

Financial
Data

Note:
1. U.S. dollar amounts are shown solely for the convenience of readers and are translated at the rate of ¥112.19 to U.S.$1.00, the exchange
rate prevailing at March 31, 2017.
2. Ordinary income is a measure of accounting profit that equals operating income plus other income minus other expenses, except for
extraordinary items under Japanese GAAP.

TAKUMA CSR REPORT 201766

Financial Data

■ Consolidated Balance Sheets
TAKUMA CO., LTD. and Consolidated Subsidiaries
As of March 31, 2017, and 2016

Thousands of
U.S. dollars

Millions of yen

ASSETS
Current assets:
Cash and time deposits .................................................
Notes and accounts receivable:
Trade ..........................................................
Unconsolidated subsidiaries
and affiliated companies ...........................
Other ..........................................................
Less allowance for doubtful accounts ...........
Total ............................................
Inventories ....................................................................
Deferred tax assets ........................................................
Other ............................................................................
Total current assets .................................
Property, plant and equipment:
Land .............................................................................
Buildings and structures ................................................
Machinery, equipment, lease assets
and construction in progress .......................................
Less accumulated depreciation ......................................
Total property, plant and equipment ....

2017
¥ 57,719

2017

2016
¥

48,916$514,475

44,71644,935398,574

391
242
(27)
45,322
3,897
2,471
766
110,175

1,457
289
(39)
46,642
4,041
2,803
607
103,009

3,486
2,160
(247)
403,973
34,74422,021
6,827
982,040

3,018
12,225

3,018
12,21926,898108,973

11,11926,362(17,434)
8,928

11,12326,360(16,764)
9,596

99,109234,980(155,401)
79,579Investments and other assets:
Investment securities .....................................................
Investments in:
Unconsolidated subsidiaries
and affiliated companies ...........................
Other ..........................................................
Less allowance for doubtful accounts ...........
Total ............................................
Deferred tax assets ........................................................
Other ............................................................................
Total investments and other assets .......

13,161

11,136

117,311

4,950
938
(461)
5,427
2,210
300
21,098

5,556
823
(467)
5,912
2,648
313
20,00944,123
8,363(4,108)48,378
19,6992,668
188,056

Total assets ............................................................................

¥ 140,201¥ 132,614$ 1,249,675

LIABILITIES AND NET ASSETS
Current liabilities:
Short-term loans payable ...............................................
Current portion of long-term debt .................................
Notes and accounts payable:
Trade ..........................................................
Unconsolidated subsidiaries
and affiliated companies ............................
Other ..........................................................
Total ............................................
Accrued income taxes ....................................................
Advances received .........................................................
Allowance for guarantees on completed work ...............
Allowance for losses on sales contracts ..........................
Other ............................................................................
Total current liabilities .............................
Long term liabilities:
Long-term debt .............................................................
Allowance for directors’ and executive officers’
retirement benefits ......................................................
Net defined benefit liability ............................................
Other ............................................................................
Total long term liabilities ........................
Total liabilities ..........................................
Contingent liabilities
Net assets:
Common stock ..............................................................
Authorized: 321,840,000 shares
Issued: 83,000,000 shares
Capital surplus ...............................................................
Retained earnings ..........................................................
Treasury stock, at cost ...................................................
331,201 shares in 2017 and
328,764 shares in 2016
Total shareholders’ equity ............................
Unrealized gains on securities ........................................
Deferred gains and losses on hedges .............................
Foreign currency translation adjustments .......................
Remeasurements of defined benefit plans ......................
Total accumulated other comprehensive income ..
Non-controlling interests in consolidated subsidiaries .....
Total net assets ........................................

TAKUMA CSR REPORT 2017

2017
¥

7,675
468

2017

2016
¥

7,750
673

$

68,411
4,169

32,56934,584

290,300

344
931
33,844
2,532
7,935
177
3,578
5,734
61,943575
1,111
36,270
1,256
7,700
141
5,164
4,190
63,144

3,071
8,299
301,670
22,56770,733
1,577
31,88951,114552,130

929

1,396

8,278

152
9,011
439
10,531
72,474

189
8,668
408
10,66173,805

1,356
80,317
3,912
93,863645,993

13,367

13,367

119,150

3,768
46,258(234)

3,768
38,754(232)

33,588412,323(2,095)

63,159
4,886
(21)
6
(591)
4,280
288
67,72755,657
3,586
(27)
(11)
(660)
2,888
264
58,809562,966
43,548(185)
50(5,264)
38,1492,567
603,682¥ 140,201¥ 132,614$ 1,249,675

TAKUMA CSR REPORT 2017

Financial
Data

Total liabilities and net assets ..............................................

67

Thousands of
U.S. dollars

Millions of yen

68Financial Data

■ Consolidated Statements of Operations■ Consolidated Statements of Comprehensive Income

TAKUMA CO., LTD. and Consolidated Subsidiaries
For the years ended March 31, 2017, and 2016

TAKUMA CO., LTD. and Consolidated Subsidiaries
For the years ended March 31, 2017, and 2016

Thousands of
U.S. dollars

Millions of yen
2017

2016

2017

Net sales .................................................................................
Cost of sales ...........................................................................
Gross profit ...................................................................
Selling, general and administrative expenses ....................
Operating income .........................................................
Other income (expenses):
Interest and dividend income .........................................
Interest expense ............................................................
Loss on disposal of property, plant and equipment ........
Equity in earnings of affiliated companies ......................
Impairment loss ............................................................
Other, net .....................................................................
Other income (expenses), net .................

¥ 116,309
90,69325,616
14,642
10,974¥ 113,088
89,744
23,344
14,1559,189$1,036,717
808,393
228,324
130,509
97,815

337
(76)
(51)
280
142
632

366
(105)
(167)
287
(267)
76
190

3,000
(673)
(456)
2,491
1,269
5,631

Income before income taxes................................................
Income taxes:
Current .........................................................................
Deferred ........................................................................
Total income taxes ...................................

11,606

9,379

103,446

2,859
172
3,031

1,558
11
1,569

25,482
1,532
27,014

Profit .......................................................................................

8,575

7,810

76,432

Profit (loss) attributable to non-controlling interests
in consolidated subsidiaries ...............................................

24

(7)

215

Profit attributable to owners of parent ..............................
Per share:
Net income ...........................................................................
Diluted net income ...............................................................
Cash dividends applicable to the year ....................................

¥

8,551

¥

7,817

Yen
¥ 103.43
13.00$

Thousands of
U.S. dollars

Millions of yen
2017Profit ........................................................................................
Other comprehensive income:Unrealized gains (losses) 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 ....................................

¥

8,575

¥

1,299
(29)
23
69
1,362
9,937

¥

9,942
(5)

2017

2016
¥

7,810

¥

(511 )
(41 )
(55 )
(54 )
(661 )
7,149

¥

7,165
(16 )

$

76,432$

11,582
(262)
200
617
12,13788,569$88,619(50)

76,217

U.S. dollars
¥

94.55
11.00

$

0.92
0.12

Financial
Data

69

TAKUMA CSR REPORT 2017

TAKUMA CSR REPORT 201770

Financial Data

■ Consolidated Statements of Changes in Net Assets
TAKUMA CO., LTD. and Consolidated Subsidiaries
For the years ended March 31, 2017, and 2016
Millions of yen
Commonstock

For the year 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

Capitalsurplus¥Thousands of U.S. dollars
Treasurystock,
at costRetainedearnings

3,768
3,768

¥ 38,754
(992)
8,551
(55)
¥ 46,258

Unrealized
gains onsecurities

Deferred gains
and losses
on hedges

Foreigncurrencytranslation
adjustments

Remeasurements ofdefinedbenefit plans

¥

¥

¥

¥

¥

¥

¥

(232)
(2)
(234)

Total
shareholders’equityFor the year ended March 31, 2017
Balance at the beginning of current period ...
Cash dividends ($0.11 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 ............

¥ 55,657
(992)
8,551
(55)
(2)
¥ 63,159

CapitalsurplusRetainedearnings$ 119,150$ 119,150$ 33,588$ 33,588$ 345,436(8,843)76,217(487)$ 412,323

Unrealized
gains onsecurities

Deferred gains
and losses
on hedges

Foreigncurrencytranslation
adjustments

Remeasurements ofdefinedbenefit plans$ 31,964
11,584$ 43,548$$$

Millions of yen

For the year 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 ............

¥

3,586
1,300
4,886

¥

(27)
6
(21)

¥

(11)
17
6

¥

(660)
69
(591)

Treasurystock,
at costCommonstock$$(2,075)(20)(2,095)

Total
shareholders’equity$ 496,099(8,843)76,217(487)(20)$ 562,966

Thousands of U.S. dollars
Total
Non-controlling
accumulated otherinterests incomprehensive
consolidated
incomesubsidiaries

¥

¥

2,888
1,392
4,280

¥

¥

264
24
288

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

For the year ended March 31, 2017
Balance at the beginning of current period ...
Cash dividends ($0.11 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 ............

$

(237)
52
(185)

$

(100)
150
50

$

(5,881)
617(5,264)Total
Non-controlling
accumulated otherinterests incomprehensive
consolidated
incomesubsidiaries$ 25,746
12,403$ 38,149

$

$

2,350
217
2,567

Total net
assets$ 524,195(8,843)76,217(487)(20)
12,620$ 603,682

Millions of yen
Commonstock

For the year ended March 31, 2016
Balance at the beginning of current period ...
Cash dividends (¥10.00 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

Capitalsurplus¥Treasurystock,
at costRetainedearnings

3,768
3,768

¥ 31,764
(827)
7,817
¥ 38,754

Unrealized
gains onsecurities

Deferred gains
and losses
on hedges

Foreigncurrencytranslation
adjustments

Remeasurements ofdefinedbenefit plans

¥

¥

¥

¥

¥

¥

¥

(228)
(4)
(232)

Total
shareholders’equity¥ 48,671
(827)
7,817
(4)
¥ 55,657

Millions of yen

For the year ended March 31, 2016
Balance at the beginning of current period ...
Cash dividends (¥10.00 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 ............

¥

4,097
(511)
3,586

¥

24
(51)
(27)

¥

25
(36)
(11)

¥

(605)
(55)
(660)

Total
Non-controlling
accumulated otherinterests incomprehensive
consolidated
incomesubsidiaries

¥

¥

3,541
(653)
2,888

¥

¥

304
(40)
264

Total net
assets¥ 52,516
(827)
7,817
(4)
(693)
¥ 58,809
Financial
Data

71

TAKUMA CSR REPORT 2017

TAKUMA CSR REPORT 201772

Financial Data

■ Consolidated Statements of Cash Flows
TAKUMA CO., LTD. and Consolidated Subsidiaries
For the years ended March 31, 2017, and 2016

Thousands of
U.S. dollars

Millions of yen
2017
Cash flows from operating activities:
Income before income taxes ...........................................................................
Adjustments to reconcile income before income taxes
to net cash provided by operating activities:
Depreciation ...............................................................................................
Impairment loss ..........................................................................................
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 ..........................................................................................................
Subtotal ..................................................................................................
Interest 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 receivable ...................................................................
Collection of loans receivable ..........................................................................
Other ..............................................................................................................
Net cash provided by (used in) investing activities .....................................

¥ 11,606

2017

2016
¥

9,379

$

103,446

851
(18)
182
(1,586)
445
(337)
76
(280)
463
148
(25)
(2,143)
1,489
149
11,020405(76)(1,759)
9,590

840
267
(21)
107
(1,731)
325
(367)
105
(287)
(7,951)
(237)
42
6,867
(587)
152
6,903
623
(108)
(690)
6,728

7,585
(157)
1,623
(14,140)
3,971(3,000)673(2,491)
4,123
1,325
(224)
(19,105)
13,274
1,324
98,227
3,609(679)(15,674)
85,483

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

42
(656)
(82)
(91)
152
(25)
243
(28)
(445)

30
(5,126)(578)(4,216)116(1,524)
11,836735
1,273

Thousands of
U.S. dollars

Millions of yen
2017

2017

2016

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 .........................................................

(75)
(673)
(2)
(992)
(17)
(28)
(1,787)(100)(1,896)
(4)
(827)
(25)
(48)
(2,900)(668)(5,996)(20)(8,843)(151)(252)(15,930)

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 ....................................................

15
7,961
48,335836¥ 57,132

(56)
3,327
45,00848,335

131
70,957
430,835
7,455
509,247¥$

Financial
Data

73

TAKUMA CSR REPORT 2017

TAKUMA CSR REPORT 201774

Outside Expert Opinion
Outside Expert Opinion

Response to theOutside Expert Opinion

Takuma Corporate Profile & CSR Report 2016
Questionnaire Survey Results
Survey period: July 2016 to June 2017 Number of respondents: 955

Q1. Did you understand the activities of our company?
I couldn’t
understandvery well.
0%

Hiroji Tanaka

Koji Tanaka

Head Researcher
Business Ethics Research Center
Professor Emeritus
Tokyo College of Transport Studies(former President)

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

Exceptionally praiseworthy accomplishments

75

TAKUMA CSR REPORT 2017

I basically I understood.
51%
understood.
49%

Q2. What is your level of satisfaction regarding this Report?

Fifth, the company describes key issues, CSR topics,
responsible departments, action plans, and its
self-assessment of implementation status for each initiative in the form of a comprehensive table while making
reference to seven core themes from sources such as the
GRI and ISO 26000. The report goes on to carefully
explain how Takuma creates value through its CSR
activities with photographs, illustrations, and tables thatshow the status of activities in each area as well as
messages from customers and thoughts from involved
employees. The thoroughness of this approach is praiseworthy.
Moreover, the company accommodates socialpressure with regard to corporate governance, an area of
pronounced interest, by thoroughly outlining forstakeholders its corporate governance, internal controls,
compliance and CSR structures, risk management
structures, business continuity planning (BCP), and IR
activities. In addition, the company has addressed
environmental concerns by significantly lowering its CO2
emissions in accordance with the Takuma Environmental
Policy, environmental management practices, and proprietary technologies for reducing CO2 emissions.

Areas where Takuma can do moreFirst, I would suggest that Takuma establish concrete
links concerning environmental, social, and governance(ESG) and sustainable development guidelines (SDGs),
both areas where interest is growing in society, in thecomprehensive table of forward-looking CSR activities
compiled with reference to the GRI and ISO 26000.
Second, the Takuma Group has formulated guidelines
such as the Takuma Group Ethics Charter, the Takuma
Group Code of Conduct, and various company rules toensure respect of fundamental human rights and toprohibit discrimination. I would recommend that thecompany summarize those guidelines in the form of a
Takuma Group human rights policy. Adding initiatives
related to human rights would only serve to heighten thelevel of trust that society has placed in the company.

I would like to thank Mr. Tanaka of the Business Ethics
Research Center for offering his valuable insights on the
Corporate Profile & CSR Report 2017.
In compiling this report, we have worked to offer aconcrete, easy-to-understand introduction to a variety ofactivities carried out by the Takuma Group with the goal ofachieving sustained growth while resolving social issues andincreasing corporate value, and we have invited stakeholders
and involved parties to express their thoughts on related
subjects in their own words so that all stakeholders could
have a better understanding of our operations.
I’m grateful that Mr. Tanaka has praised us for carryingout our responsibility to explain our operations to all
stakeholders in an appropriate manner in the “Exceptionallypraiseworthy accomplishments” section of his evaluation.
I’m also extremely grateful for his kind words concerning
the way we’ve incorporated the thoughts of stakeholders andemployees. His observation that we are carrying out oursocial mission through our businesses by ensuring that all
employees put the Group’s fundamental approach, as
defined by guidelines such as the Company Motto and theManagement Principles, into practice and cultivating arobust corporate culture is very encouraging.
At the same time, Mr. Tanaka provided valuable insights
in the “Areas where Takuma can do more” section of his
evaluation. With regard to forward-looking CSR activities
and human rights initiatives, I hope that we’ll be able tobetter facilitate communication with stakeholders in the
future by deepening their understanding of ESG and SDGs,
organizing social expectations and requirements from thatperspective, and working to share value with stakeholders.
We value Mr. Tanaka’s observations and take them
seriously, and I would request stakeholders’ 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 combined Corporate
Profile and CSR Report, with both a guide to our corporation
and a report on our CSR activities.

■ Publisher and Contact for Inquiries

General Affairs Department, Corporate Service Division
TEL: +81-6-6483-2609 FAX: +81-6-6483-2751
CSR Department, Compliance & CSR Promotion Division
TEL: +81-6-6483-2673 FAX: +81-6-6483-2751① Volume of information
SomewhatToo much
insufficient 2%
2%
Insufficient 0%
Somewhatexcessive
23%② Design
Poor 0%
Very bad 0%
Average
14%
Mostlysatisfied
28%

Satisfied73%③ Quality of information
Somewhat unsatisfactory 0%
Unsatisfactory 0%④ Readability

Average
13%
Mostlysatisfied
32%

Average
19%
Satisfied55%

Mostlysatisfied
33%

Satisfied58%

Somewhatdifficult to read 2%
Difficult to read 0%

Satisfied46%

Q3. Which items were you interested in? (Select up to 3.)
50%
50%

Message from Top Management
Business Development
Contributing to Society throughOur Businesses and Products
Takuma Group 11th Medium-Term
Management Plan — An Overview

27%
23%
17%
12%
11%
10%
8%
7%
5%
4%
4%
4%
3%
3%
3%
1%

Business Summary
Corporate Information
The Environment
CSR Activities for the Future
Financial Data
Stakeholder Dialog
Human Rights and Labor Practices
Contribution to Society
Outside Expert Opinion
Participation in the Community
Fair Business Practices
Corporate Governance
The Takuma Group Network
Consumer Issues
0

10

20

30

40

50

60 (%)■ Data Collection Period

From April 1, 2016, to March 31, 2017, in principle.
In addition, some activities in FY2017 are included.

■ Coverage

This report applies to Takuma Co., Ltd. and its affiliates inprinciple.
Outside Expert Opinion /2016 Questionnaire
Survey Results

First, the Takuma Group summarizes its stance towardachieving sustained growth by resolving social issues andincreasing corporate value based on CSR management inan easy-to-understand manner in its Corporate Profile &CSR Report 2017. In this way, it fulfills its responsibility
to explain its operations to all stakeholders in an
appropriate manner.
Second, the message from top management outlines
the manner in which the company will facilitate theexpansion and development of its business by diligently
pursuing its 11th Medium-Term Management Plan
(FY2015 to FY2017) in order to achieve sustained
growth in line with its Management Principles and by
pursuing its goal of achieving ordinary income of JPY
10.0 billion in FY2020.
Furthermore, it is praiseworthy how the company has
set forth the Company Motto, Management Principles,
Takuma Group Ethics Charter, and Takuma Group Codeof Conduct as the basis for CSR management and how it
is fulfilling its social mission through its business by
ensuring that all employees strive to put those ideals into
practice to cultivate a robust corporate culture.
Third, the corporate profile’s “Corporate Information,” “Business Summary,” and “The Takuma Group
Network” sections provide concise explanations of theenvironmental energy, package boiler, and equipment andsystems businesses, as well as the state of its businessnetwork, using photographs and illustrations along withinformation about Takuma’s history, organization, andbusiness results.
Fourth, the “Striving to coexist with local communities” feature provides a concrete report about how
Takuma partners with three companies to complete DBO
projects, offering site photographs, messages from stakeholders, and thoughts from involved employees. The
report goes on to highlight the company’s municipal
solid waste treatment plant business, energy plantbusiness, water treatment plant business, overseas
business, and principal delivered projects with site
photographs, illustrations, and thoughts from involved
employees. In this way, Takuma meticulously fulfills its
responsibility to explain its operations.

I couldn’t
understand.
0%■ Time of Issue:

Current issue: July 2017
Next issue: Scheduled for July 2018
Last issue: July 2016

TAKUMA CSR REPORT 201776

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

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■ Printing

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Printed using environmentally friendly
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