CSR Report2019Contents

Bringing new value to society
with +TAKUMA(Cover: Thai Udonthani Power Co., Ltd.)

3

Message from Top Management

7

Takuma Group 12th Medium-Term Management Plan
− An Overview

10Company Outline

11

Business Summary

13

Introduction to Group Company Businesses

15

History

17

Feature01. Biomass Power Plant Construction/O&M
Project in Kasaoka
02. Biomass Power Plant Construction Projectin Thailand

25

Introduction to Takumaʼs Businesses
1. Environmental Plant Business
2. Energy Plant Business
3. Overseas Business

39

CSR Activities for the Future41

Corporate GovernanceCorporate GovernanceInternal Control /Compliance & CSR Promotion Structure
Risk Management Structure
Business Continuity Plan (BCP) / IR Activities
Directors and Executive Officers
Message from a New Outside Director

47

Human Rights and Labor Practices
Respect for Human Rights and the Abolition ofDiscrimination / Working with Our Employees
Efforts for Occupational Safety and Health

53

The Environment
Basic Environmental Policy /Environmental Management
Takumaʼs CO2 Emission Reduction Technologies

Founder Tsunekichi Takuma invented the first boiler
to be produced entirely in Japan by bringing expertiseand technology to a product that had to be imported
until that time.
By passing down this philosophy over time andaugmenting it with Takumaʼs technology, we continue
to create products with new value today.
Going forward, we will provide that value tocustomers through plants that take advantage of the
proprietary technologies we have developed since ourfounding in areas such as combustion, waste
treatment, and water treatment.

Environmental Reporting

1

TAKUMA CSR Report 201957

Fair Business Practices
Compliance & CSR Promotion Education /Compliance Measures
CSR Awareness Survey / Internal Reporting
System / Material Procurement Policy

59

Consumer Issues
Activities Involving Product Quality

61

Participation in the Community

62

Contribution to Society

63

Financial Data

73

Outside Expert Opinion
Outside Expert Opinion
Response to the Outside Expert Opinion /Takuma CSR Report 2018 Questionnaire Survey
Results / Editorial Policy

TAKUMA CSR Report 20192

Message fromTop Management
Contributing todevelopment of society
by providing new value
the world needsIʼm Hiroaki Nanjo, and I became President and CEO of
Takuma in April.
The Takuma Group, which has adopted the goals 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 of achieving ordinary proﬁt of JPY 10 billion in FY2020,
has embraced a vision of building structures capable ofconsistently earning an ordinary profit of at least JPY 10
billion even as the business environment undergoes aprocess of significant change. As the final stage in our direct
to achieve that vision, we are working to implement the 12th
Medium-Term Management Plan (FY2018 to FY2020). That
effort includes a variety of business activities undertaken as
part of the Plan, which outlines a three-year period during
which we have sought to boost our corporate capabilities tofacilitate the achievement of our vision and consistent
growth afterwards based on a sure assessment of how thebusiness environment is likely to change in the future.

Continuing to be a company that plays
an essential role in societyIʼd like to take advantage of this opportunity to describe
my basic approach to management as I take on these new
responsibilities.
First, I believe in the importance of respecting ourManagement Principles. The Takuma and Takuma GroupManagement Principles state, “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.” That impetus
can also be found in our founding spirit of “Service to thenation through boiler manufacturing*,” and it means
contributing to the world through the goods and services
that we create. It also informs corporate social responsibility(CSR), which we have currently embraced as a key issue inthe companyʼs management. Companies must build andmaintain good relationships with a variety of stakeholders,
including customers, business partners, employees,
shareholders, and investors. Such relationships cannot berealized in a day. The first step is for the company to conduct
itself in a way that inspires trust on the part of stakeholders.

3

TAKUMA CSR Report 2019

Through endless effort to provide new value after
conducting ourselves in line with the dictates of legal
compliance, impartiality, ethical values, and social mores
while ensuring transparency in decision-making andfulfilling the obligations of accountability, we must build andmaintain good relationships; only then will society
acknowledge the value of Takumaʼs continued existence. I
believe that management is founded on corporate
governance, compliance, and risk management.
Second, I embrace the practice of seeing things from botha short-term and a medium-/long-term perspective. As thebusiness environment continues to undergo significant
change, we are called upon to deal with those changes in an
appropriate manner and to generate results as we do so.
Additionally, as a publicly held company, we are required toincrease management efficiency and to improve our
performance. However, merely pursuing short-term profits inthe context of an effort to achieve long-term development of
the business while satisfying all stakeholders is unlikely tolead to sustained growth. We must cultivate a medium- andlong-term perspective and incorporate it into ourmanagement while reliably dealing with the immediate
opportunities and issues that present themselves to us. In
particular, the Groupʼs products̶Energy from Waste plants,
water treatment plants, and energy plants̶are key parts ofsocietyʼs underlying infrastructure, and as such they operate
for 20 to 30 years after being delivered to the customer. We
will continue to work to manufacture optimal products
through careful attention to all phases of the life cycle, fromdesign to construction and maintenance, in order to ensurethat customers can utilize these facilities for as long, and in
as effective a manner, as possible. At the same time, ESG
investment is attracting attention as a means of boosting
corporate value over the long term. We will contribute tosociety by focusing even more closely on developing andsupplying products and services that make contributions to
the environmental priorities of reducing environmental
impacts and lowering greenhouse gas emissions.
Third, I am committed to carrying on a good corporate
culture that allows all employees to pursue their jobs withenthusiasm and ambition while enjoying personal growth.
Takuma has created a culture that encourages such growthby allowing relatively inexperienced employees to take on
job responsibilities so that they can gain motivation andexperience a sense of accomplishment while being mentoredby supervisors and older colleagues. I look forward tocontinuing to develop an environment that allows each
Takuma employee to approach his or her job with a desire to
improve, to take full advantage of his or her skills andabilities, to grow through the companyʼs activities, and toenjoy a sense of motivation and happiness.

Message from Top Management

the sustainable

Assessing change in the businessenvironment and boosting our ability
to grow

TAKUMA CSR Report 20194

Message fromTop Management

Value Technology, Value People, Value the Earth

Takuma will strive for social contribution, corporate value enhancement, long-term corporate development and thesatisfaction of all stakeholders by providing goods and services that are needed and recognized as valuable insociety.

Accommodating customersʼ diversifying
needs through new initiatives such as
the O&M* businessCurrently, Takumaʼs principal businesses include the Solid
Waste Treatment Plant Business; the Energy Plant Business,
which includes our Package Boiler Business; and the Water
Treatment Plant Business. These three core areas ofoperations have grown thanks to continuous effort overmany years, and by cultivating trusting relationships withcustomers, they have earned us excellent market share. We
are now embarking on a new initiative that will seek todevelop an O&M business for energy plants, an area thatshares our focus on maintenance, into a robust contributor
to Takumaʼs bottom line by taking advantage of theexperience weʼve gained in solid waste treatment plants.
Continuous action will be needed in the future in order toaccommodate customersʼ diversifying needs so that we cancontinue to grow. Through the creative efforts of all
employees, we will show the way forward for each businessso that we can achieve the goals of the 12th Medium-Term
Management Plan and realize our medium- and long-term
vision for the next stage in our history.

Helping solve social issues fromthe worldʼs standard perspective
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 to develop
our business while understanding and respecting these
globally shared principles. In addition, concerning theimplementation of the Sustainable Development Goals(SDGs) adopted by the United Nations and the provisions of
the Paris Agreement adopted at COP21, the Group is helping
resolve social issues with technologies for reducing
emissions of greenhouse gases like carbon dioxide throughsuch means as high-efficiency generation of electricity using
waste and biomass.
In closing, in compiling this CSR Report we have sought
not only to provide a resource by means of which a broad
range of stakeholders could learn more about the Takuma
Groupʼs activities, but also to help each and every Group
employee think carefully about CSR and bring thatperspective to bear in his or her work. We at the Takuma
Group encourage readers to offer their candid views andadvice, which we will carefully review in order that wemight better resolve social issues and contribute to thesustainable development of society.
July 2019

Hiroaki Nanjo
President and CEO
Takuma Co., Ltd.

* Service to the nation through boiler manufacturing:
It was the Company Motto of Takuma, then Takuma Boiler

The Takuma Group has joined the United Nations

Manufacturing Co., Ltd., founded by Mr. Tsunekichi Takuma,

Global Compact (UNGC), which is a voluntary effort

one of the ten great inventors of Japan during the Meiji andto create a global framework for implementing

Taisho periods (1868-1926).

sustainable growth by having companies and groups* O&M: Operation & Maintenance5* United Nations Global Compact:

TAKUMA CSR Report 2019

exercise responsible and creative leadership while
acting as good members of society.

Message from Top Management

The founding spirit of Takuma was “Service to the nation through boiler manufacturing,” which in present-day
language means “contribution to society by supplying goods and services that we yield.” This spirit can also be
applied to the concept of Corporate Social Responsibility (CSR) that in recent years has become a vital issue forcorporate management. The management principles of the Takuma group companies are all based on the said
founding spirit.

Takuma and the Takuma Group companies believe that it is essential for the sound development of the groupthat all of the directors and employees remain aware of our social responsibilities and the circumstances
surrounding us as well as act in response to social ethics complying with applicable related laws and ordinances.
Bearing the above in mind, we have established and will promote this ethics charter as our code of conduct, aiming
to realize our management principles.
1. We shall strive for proactive social contribution while establishing a harmonious coexistence with the global environment as
good corporate citizens.
2. We shall act in good faith in accordance with sound business custom, while complying with applicable laws and regulations
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 the social order andsecurity 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 high acclaim andconfidence from our customers.
6. We shall strive to disclose corporate information to shareholders and investors through investor relations (IR) and otheractivities 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.

Harmony with society

Practice of customer satisfaction

Practice of compliance with laws and ordinances as well
as sound economic activities

Making appropriate disclosure of information

1. Coexistence with the global environment
2. Coexistence with international society
3. Practice of social contribution 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

Respect for basic human rights

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

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

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

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

TAKUMA CSR Report 20196

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

1.Positioning of the 12th Medium-Term Management Plan
●
●

500

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

Previous medium-and
long-term vision

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

Next medium- andlong-term vision

Aim to maintain our role of being an indispensable presence in society as a leading company in the field of renewableenergy utilization and environmental protection.
Ordinary profit of JPY 10 billion in FY2020 (Build structures capable ofconsistently earning ordinary profit of at least JPY 10 billion even as thebusiness environment undergoes major changes.)

11th Medium-Term Management Plan
(FY2015 to FY2017)

Strengthening of corporate capability
to facilitate steady growth

10 Medium-Term Management Plan
(FY2012 to FY2014)

Steady expansion in terms of bothquantity and quality

Cumulative ordinary profit target

9th Medium-Term Management Plan
(FY2009 to FY2011)

Reinforcement of business foundation
for stability and proﬁtability

Cumulative ordinary profit results

Proﬁtability through selection andconcentration of resources

Cumulative ordinary profit resultsth

2.Policies of the 12 Medium-Term Management Planth

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

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

❸Increasing productivity, for example byreforming business processes

The nature of the Groupʼs businesses is undergoing major
evolution as the business environment changes, for example
due to changes in social structure such as the shrinking and

TAKUMA CSR Report 2019aging of Japanʼs population and the emergence of moreadvanced and diverse customer needs as well as social issues.
We will strive to improve productivity, make effective use ofhuman resources, and further increase the level of value we
provide by fundamentally reviewing and rebuilding businessprocesses that have become increasingly complex in order toaccommodate these changes while focusing on businesses withhigher added value (which will help us create and provide value).

❺Continuing to pursue compliance management

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

30
20
10

10th Plan

11th Plan

0

12th Plan(Billion JPY)

10 Medium-Term
Management Plan results

11 Medium-Term
Management Plan resultsth

12 Medium-Term
Management Planthth

2012 to 2014

2015

2016

2017

Total

2018

FY2018 to FY2020

Order value

371.0

99.9

191.0

177.1

468.0

179.8

Sales

296.5

113.0

116.3

118.1

347.5

121.9

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

Ordinary profit

25.7

9.6

11.6

10.6

31.9

12.3

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

4.Core Business Units and Emphasis of Future Activities
As facilities age, there is ongoing robust demand for renewal andservice life elongation.
● Volume is growing for DBO projects as well as O&M services forexisting facilities.

●●●❹Using human resources effectively

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

40

The 12 Medium-Term Management Plan, which represents the300
final stage of our current medium- and long-term vision, establishes
the above targets to guide our achievement of the visionʼs goal of200
consistently earning ordinary profit of JPY 10 billion while
simultaneously directing the company to utilize
Order value (left scale)100
all its resources to build a robust business andSales (left scale)management foundation in response to future
Ordinary profit (right scale) 0changes in the business environment.

JPY 33.0 billion

JPY 25.7 billion❶Strengthening and expanding our revenue
foundation

400

50

th

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

JPY 31.9 billion(Billion JPY)

Takuma Group 12th Medium-Term Management Plan - An Overview

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

7

3.Financial Target

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

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

●

●

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

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

●●●

Demand for biomass power plants in Southeast Asia remains
robust.
● Our flagship bagasse-fired boiler plants continue to experience
intense competition.

●

●

●

●

●

●

●
●

There is a growing need for proper waste management andenergy utilization against a backdrop of growing urbanization,
increase of waste volume, and diversification of waste
characteristics.
Build structures to facilitate collaboration with partner companies.
Build schemes for entering new markets.

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

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

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

●●●

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

* DBO: Design Build Operate / PPP: Public Private Partnership / PFI: Private Finance Initiative / FIT: Feed-in Tariff

TAKUMA CSR Report 20198

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

5.Progress in Implementing the 12th Medium-Term Management Plan
In this section, members of Takumaʼs management team present progress in implementing the goals of
the 12th Medium-Term Management Plan, which began in FY2018.

Name:
Head office location:

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: Hiroaki Nanjo, President and CEO
Established:
June 10, 1938
Capital:JPY 13,367,457,968 (as of March 31, 2019)
Main business areas:
The design, construction and superintendence of a wide
variety of boilers, plant machinery, pollution prevention
plants, environmental equipment plants, and heating andcooling equipment and feed-water / drainage sanitationequipment and facilities
The design, construction and superintendence of civil,
architecture and other works
Number of employees (non-consolidated): 852 (as of March 31, 2019)
Number of employees (consolidated):
3,619 (as of March 31, 2019)

3 Tokyo Branch (Minato-ku, Tokyo)
4 Hokkaido Branch (Sapporo, Hokkaido)
5 Tohoku Branch (Sendai, Miyagi)
6 Chubu Branch (Nagoya, Aichi)
7 Kyushu Branch (Fukuoka)
8 Okinawa Branch (Ginowan, Okinawa)
9 Harima Factory (Takasago, Hyogo)
10 Taipei Branch (Taipei, Taiwan)(As of June 26, 2019; see Takumaʼs website for details.)
Takumaʼs business offices

The Japanese Solid Waste Treatment Plant and Boiler Plant
Businesses performed well during the first year of the Plan. Orders,sales, and operating income all exceeded the initial planned values as
we enjoyed a smooth start in terms of quantitative performance.
Looking at the business environment, the transition in theJapanese market from manufacturing alone to a service business thatuses products as tools is accelerating, and there is demand in theoverseas market for products and services that can accommodate
individual countriesʼ different situations and needs.
In order to achieve steady growth, it is necessary for companies tobolster their capabilities to ensure they can adapt to changes in thetenor of the times. One of the key themes for this plan is strengthening
and expanding the Japanese plant operation business and bringing new
creativity to its development overseas. Our goal is to enhance ouradaptability and create a foundation that will enable us to secure stableprofits in the future by actively developing more appropriate structures
based on revamped resource allocation, accumulating more skills, andoffering a selection of products that meet the needs of the times.

1 Head Office (Amagasaki, Hyogo)
2 Osaka Office (Osaka)Group companies in Japan

12 Nagaizumi High Trust Co., Ltd.

17 Takuma Energy Co., Ltd.

1 Nippon Thermoener Co., Ltd.

13 Fujisawa High Trust Co., Ltd.

18 Kurume High Trust Co., Ltd.

2 Takuma Technos Co., Ltd.

14 Iwate-Kenpoku Clean Co., Ltd.

19 Hokutan High Trust Co., Ltd.

3 Hokkaido Sanitary Maintenance Co., Ltd.

15 Hitachinaka-Tokai High Trust Co., Ltd.

20 Suwako High Trust Co., Ltd.

4 Takuma Technos Hokkaido Co., Ltd.

16 Anan High Trust Co., Ltd.

21 Imabari High Trust Co., Ltd.
22 Energy Mate Co., Ltd.
23 Kashihara High Trust Co., Ltd.

6 Takuma Engineering Co., Ltd.

9

7 Takuma System Control Co., Ltd.

24 Tochigi High Trust Co., Ltd.
25 Ecos Yonezawa Co., Ltd.

8 Dan-Takuma Technologies Inc.
9 Kyoritsu Setsubi Co., Ltd.

4 3 4

10 Kankyo Sol-Tech Co., Ltd.
11 Takuma Plant Service Co., Ltd.

24

Tsuyohito Nishiyama

14

Director & Senior Managing Executive Officer
Executive Manager, Corporate Marketing Group

8

25

7

5

6

8
12

20

18

2

Hideki Takeguchi

9

TAKUMA CSR Report 2019

5

15

1

13

3

21

Director & Senior Managing Executive Officer
Executive Manager, Engineering Group

Overseas group companies

Group companies in Japan

5 Sun Plant Co., Ltd.

In order to build a society in which the global environment andnatural environment are protected and conserved in an appropriatemanner into the future, it will be necessary to utilize waste effectively
as a resource and to expand production of renewable energy.
Our mission is to maintain our role of being an indispensable
presence in society as a leading company in the ﬁeld of renewableenergy utilization and environmental protection. In keeping withthat mission, our Engineering Group will continue to help build asustainable society by providing plants that make significant inroadsin the drive to protect the environment, develop a recycling-basedsociety, and reduce CO2 emissions through pioneering solid waste
treatment that helps reduce environmental impacts, Energy from
Waste projects that generate power from municipal waste andsewage sludge, and carbon-neutral biomass power generation.

Takuma Group 12th Medium-Term Management Plan - An Overview

Kengo Numata

Director & Executive Vice President
Executive Manager, Corporate Planning & Administration Division

The central theme of this Medium-Term Management Plan isstrengthening our corporate capability to facilitate steady growth.
During FY2018, we worked to do just that in an effort to not only
boost profitability, but also better earn the trust of a wide range ofcustomers and other stakeholders, including by offeringhigh-quality solutions that help resolve a variety of todayʼs social
issues. I think it was a good start for the first year of the Plan.
In FY2019 and beyond, we will continue to help build asustainable society by strengthening our corporate capabilities
through operations including our environmental plant, energy
plant, and other businesses and by maintaining our role of being
an indispensable presence in society as a leading company in theﬁeld of renewable energy utilization and environmental protection.

Company Outline

19

9 10

10 1

Overseas group companies
1 Taiden Environtech Co., Ltd.
2 Siam Takuma Co., Ltd.

1 6 7 11 17

2

22

23

2

16

TAKUMA CSR Report 201910

Business Summary■ Municipal solid waste treatment plants
We support the realization of a recycling-oriented society
using advanced waste treatment technologies that meetthe needs of local communities.
●●

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

Industrial waste treatment plantIndustrial waste
treatment plant■ General-purpose boilers■ Air-conditioning equipment and clean systems

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

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

●

Steam Boilers (EQOS, Super EQOS)
Vacuum-type Water Heaters (Vacotin Heater)● Package Water-tube Boilers● Flue and Smoke Tube Boilers (RE Boiler)● Heat Medium Oil Boilers (Thermoheater)● Radiation Heating Equipment (Strip Heater)

●

●

●

●

●

Building equipment
Air-conditioning equipment● Cleaning and drying devices

Clean room
Clean devices● Chemical filters
Business Summary

Waste to solid fuel conversion
plant● Transition and intermediate
processing plant● Raw fuel (biogas) recovery plant● Various types of pollution
prevention equipment

Energy from Waste plant
Pyrolysis gasification andmelting plant● Resource recycling andcollection plant● Bulky garbage crushing plant● Incineration ash and fly ash
melting plant●■ Industrial waste treatment plants

Energy from Waste plant

Vacotin Heater
Plant that generates powerfrom industrial waste andprovides heat to a plantation

Bulky garbage
crushing plant

Thermoheater

Super EQOS

RE Boiler■ Overview of financial results
Consolidated■ Energy plants■ Water treatment plants

Takumaʼs core technologies are utilized in various types ofboilers, 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●●

Biomass power
generation boiler

Waste heat boiler● Power plant●

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

Upflow moving-bed
filtration system

Sludge treatment plant● Sewage sludge-fueled power plant● Plant to process water that
infiltrates final disposal sites(Million JPY)
150,000
120,000

103,874■ Net sales composition ratios (FY2018)

Non-consolidated【Net sales】

Domestic Environment and Energy Business
Overseas Environment and Energy Business

113,088

116,309

118,198

121,950

Equipment and Systems Business

60,00064,28872,44573,327

71,47974,238

2015

2016

2017

2018

76.5%

30,00002014

Non-consolidated【Ordinary profit】

11,60512,000
9,000

9,116
8,022

(FY)

9,646
8,937
7,406

0

■ Number of employees (as of March 31, 2019)
Consolidated

Non-consolidated(Employees)
4,000

12,334
10,669

3,609

3,619

824

837

852

2016

2017

2018

3,266

3,366

3,447

806

815

2014

2015

3,000

9,732
2,000

7,891

1,000

3,000

TAKUMA CSR Report 2019

13.8%

2.5%

90,000

6,000

11

7.2%

●

Consolidated

Sewage sludge-fueled
power plant

Clean booths

Package Boiler Business(Million JPY)
15,000Waste heat boiler

Clean oven

Chemical filters

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

2014

2015

2016

2017

2018

(FY)

0

(FY)

TAKUMA CSR Report 201912

Introduction to Group Company Businesses(Related SDGs)(Related SDGs)

Takuma Technos Co., Ltd.

NIPPON THERMOENER CO., LTD.
Established
Representative

Established

September 27, 1967

Representative

Kazunori Tsuji, President

Employees

1,721 (as of March 31, 2019)

Business Profile: Nippon Thermoner

Business Profile: Takuma Technos

As a company that manufactures and sells general-purpose boilers and hot-water heaters in the Takuma Group, we strive tocontribute to society through our activities in the field of package boilers in keeping with the founding spirit of “Service to thenation through boiler manufacturing.” And as a manufacturer specializing in heat source equipment, we meet a diverse rangeof needs for customers in Japan and overseas with a broad array of products and services along with an integrated system thatencompasses sales, installation, and maintenance for products and related equipment.

Our company, which maintains 63 sites and offices nationwide, operates and manages plants including waste incineration
facilities, bulk waste treatment facilities, and recycling facilities. Our approach to those operations has been changing, andrecently weʼre involved with more DBO and O&M projects with Takuma.
Because we offer what is in effect a type of government service, our business activities are intimately connected to the livesof local residents. Consequently, we see our mission as ensuring safety, stability, and peace of mind at each facility we operate,
and we are confident that by doing so in a reliable manner we can boost our corporate value.
Our executives and employees work closely together to ensure everyone involved with our company is satisfied. We strive to
do our part in developing a recycling-based society while boosting compliance and CSR awareness.

■ Manufacturing and sales●

Boilers and associated equipment●

Introduction to Group Company Businesses

Employees

August 1, 1961
Masahiko Izumi
President and Representative Director
431 (as of March 31, 2019)

Energy-saving heat source equipment■ Businesses

Vacuum-type Water Heaters

Steam Boilers

Heat Medium Oil Boilers

Flue and Smoke Tube Boilers

Vacotin Heater

EQOS Series

Thermoheater

RE Boiler FⅡ Series●

Maintenance, management and operation of waste treatment facilities, water treatment facilities and other facilities●

Design, installation and management of various types of boilers, environmental equipment and other equipment

Increasing our corporate value
Heat sources, which are generally required by industrial and commercial facilities,
can be classified based on their use of either steam, which is needed for heating andsterilization, or hot water, which is used for bathing and cleaning. In addition to
general-purpose boilers such as EQOS Series steam boilers and Vacotin Heater
vacuum-type water heaters, which deliver some of the best performance of any models
in their respective industries, we offer a selection of special-purpose boilers including
flue and smoke tube boilers, water-tube boilers, and heat medium oil boilers. Our goal
is to select and combine heat-source equipment that suits customersʼ applications andrequirements based on deep knowledge of their businesses. Going forward, we willcontinue to help create a clean global environment by supplying high-efficiency,
high-performance products that take advantage of technological capabilities developed
over many years so that we can accommodate the changing needs and environment of
our times. This commitment is evident in accomplishments such as our becoming thefirst company in the industry to introduce hybrid hot water systems that combine heatpumps, which deliver excellent energy-saving benefits, with hot water heaters.

13

TAKUMA CSR Report 2019

■ Principal customers
JR; Ground, Maritime and Air
Self-Defense Forces;
manufacturing plants in various
industries; hospitals; hotels;
cleaning companies and linen
plants; social welfare facilities;
public baths; golf courses; etc.

Entering new business domains
In April 2019, we joined Takuma in launching the Groupʼsfirst O&M business for biomass power-generating
equipment owned by a private-sector company. Customers
outsource operation, management, and maintenance ofequipment for 20 years after the start of operation to us, so
weʼre dedicated to keeping those facilities running andsupplying power in a stable manner.

Weʼve seen a surge of initiatives related to powerbusinesses that use biomass fuel since the launch of Japanʼs
feed-in tariff program for renewable energy, and going
forward we will work with Takuma to increase orders.

TAKUMA CSR Report 201914

History

Sales(Billion JPY)

Founder Tsunekichi Takuma established our philosophy of“Service to the nation through boiler manufacturing.”
The goal of becoming a technologically driven company
based on that belief has been the basis of Takumaʼsoperations throughout its 80 years of history.
1912 to 1950

150

FY2018 Sales

JPY 121.9
billion1951 to 1971

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

1972 to 1999

History

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

100

2000 and beyond

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

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

50

1938

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

1912

1940

1950

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

1949

Company listed on the Osaka andTokyo stock exchanges

1972

1970

1980

Company renamed
Takuma Co., Ltd.

1995

1990

Amagasaki Head
Ofﬁce Building
completed

2000

2004

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

2010

2010

2018 (FY)

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

Amagasaki Head Ofﬁce Building
Tsunekichi Takuma

1930

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

1953

Head Ofﬁce moved to
Osakaʼs Kita-ku District

1975

Former head ofﬁce (Dojimahama)

1938

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

1958

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

Bulk production began on“Vacotin Heater” theworldʼs ﬁrst vacuum-type
hot water heater

1997

Vacotin Heater

1986

The ﬁrst overseas delivery of a waste
treatment facility completed

1998

ISO9001 certiﬁcation obtained

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

2005

2005

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

Feed-in tariff (FIT) program

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

2013

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

Amagasaki Factory

1942

Operation began at
Harima Factory

Harima Factory under construction

1949

15

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

TAKUMA CSR Report 20191963

Japanʼs ﬁrst waste
incineration plantdelivered
Sewerage treatment
facility delivered

1992

1999

ISO14001 certiﬁcation obtained for
Harima Factory

Japanʼs ﬁrst waste
incineration plant

Waste Management and Public

1970年 Cleansing Act and Water Pollution
1970
Control Act enacted

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

1993年 Basic Environment Act enacted
1993

Act on Special Measures against
1999年 Dioxins enacted
1999

2006

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

2007 Takumaʼs ﬁrst “CSR Report” issued

2019

Order received for a 74,950 kW biomass
power plant (FIT-approved facility)

Biomass Power Plant

TAKUMA CSR Report 201916

Supporting innovation in agricultural technologies fora new era by making sustainable facility operation a reality

Related SDGs

Energy Plant Business: Biomass Power Plant Construction/O&M Project in Kasaoka
SARA Inc.

Construction site
Kasaoka(Okayama Prefecture)

OkayamaFeatureLocated in southwest Okayama Prefecture near
Hiroshima Prefecture, Kasaoka City is home to the
Kasaoka Bay Reclamation Site, one of four largest
reclamation sites in Japan.

As a company dedicated to “Taking Agriculture in Asia
into the Future,” plant customer SARA Inc. is dedicated tooffering a stable supply of delicious vegetables that can be
consumed with peace of mind throughout the year and toachieving reasonable, sustainable relationships withproducers, sellers, and consumers. At an enormous
reclamation site on Kasaoka Bay in Okayama Prefecture,
SARA operates one of the worldʼs most advanced protectedhorticulture businesses that combines vegetable cultivation
in a 13-hectare semi-enclosed greenhouse which is one of
the largest structures of its kind in Japan and a biomass
power plant. Here the company grows and ships safe,delicious, and fresh salad tomatoes, paprika, and leaf lettucethat can be enjoyed with peace of mind.

Greenhouse

Biomass power
plant

Facility overview

17

TAKUMA CSR Report 2019

TAKUMA CSR Report 201918

Supporting innovation in agricultural technologies fora new era by making sustainable facility operation a reality

Interview

Energy Plant Business: Biomass Power Plant Construction/O&M Project in Kasaoka

We spoke to CEO Takenobu Kobayashi of SARA Inc., who played a central role in this

SARA Inc.

project, about how he ﬁrst encountered Takuma and his subsequent experiences.

Mr. Takenobu Kobayashi
CEO
SARA Inc.

Impressed by Takumaʼs frontier spirit andconﬁdent of its ability to overcome
challenges together

The power of group collaboration to achieve sustainable facility operation

SARA Inc.

Project name

SARA Power Plant

Generating capacity

10, 000 kW
80 million kWh annually(Enough to power about
20,000 households)

Principal fuel

Imported wood products
such as PKS and lumber

Completion date

March 2019

O&M contract dates

April 1, 2019, to March 31,2039 (tentative)

Greenhouse
Power

Biomass power plant／
Combustion gas puriﬁcation system
EPC

rgy
ne

T

CO2

Heat

Biomass
tri-generation

Power T
sales a k uosm a Te c h n*EPC: Engineering Procurement Construction

19

TAKUMA CSR Report 2019

a
um
ak

Customer

Takuma and Takuma Technos will provide operational
management and maintenance of the facility for 20 years
after the start of operation. By deploying the,aproprietary operational support system, and applying
expertise from DBO, O&M, and other projects involving
municipal waste incineration facilities, it is possible toachieve higher-quality, efﬁcient operation and maintenancemanagement.
Group company Takuma Energy will purchase enoughsurplus electricity from the facility to fulﬁll the annual power
needs of about 20,000 households, and some of thatelectricity will be supplied to local kindergartens, daycare
centers, middle schools, and other facilities to encourage
local consumption of locally produced power.

TakumaE

In this project, the Takuma Group came together to help
achieve an innovative initiative being undertaken by
SARA Inc.
The biomass power plant and combustion gas puriﬁcation
system installed in this project use lumber from nearby
regions and imported wood products such as palm kernel
shells (PKS) as fuel in a biomass tri-generation plant that
supplies three types of energy necessary for facility
operation: electricity, heat for heating and cooling use, andcarbon dioxide for promoting vegetable growth. In this way,
the facility can be operated in a sustainable manner.

O&M

Numerous people from different departments participatedin the process of gaining an understanding of our concept anddeveloping a variety of proposals to make it a reality, and all ofthem approached their task with an extremely high level ofenthusiasm. It was truly a project that tapped the entire
company. Each employee was appealing in his or her own way,
and after each meeting I was left with a strong impression that
Takuma is a trustworthy manufacturer.
One of the reasons we asked Takuma to build the plant wasthat I knew based on that impression that the company would
continue to do its utmost in a spirit of good faith in design,
construction, and after-sales service after we entered into acontract.

FeatureIn the run-up to the establishment of our company inJanuary 2014, we were hard at work planning to build alarge-scale vegetable farm at a reclamation site in the city of
Kasaoka, Okayama Prefecture, which we considered apromising site. Our concept included using a biomass power
plant to supply the three types of energy needed by the farm,
speciﬁcally electricity, heat, and carbon dioxide. We met withseveral plant manufacturers as part of that process and spoke
to them about the concept, but only one company indicated anunderstanding of our intentions and a willingness to embrace
the challenges they posed together. I have a strong impressionof that companyʼs frontier spirit, which inspired it to boldly
take on a tri-generation project in an unknown area of
operations. That impression remains unchanged today.

Proposal capability and human ability that
led to a relationship of trust

A relationship that facilitates new value
creation and application through continued
exchanges

Feeling the appeal of a track record in extended
operation that promised stable business proﬁts
I knew that Takuma had a long and successful track recordin biomass plant construction projects, but as we learned more
about Takumaʼs conceptual and proposal capabilities in thethoroughgoing use of surplus heat and supply of CO2 from

During the design and construction phase after we enteredinto a contract, each coordinator and site manager offeredservice in a spirit of good faith, and Takuma was able to deliver
the plant on time without major incident. The facility
continues to operate smoothly today.
Following the delivery of the plant, we entered into along-term operational and maintenance management (O&M)
contract with Takuma Group company Takuma Technos. The
facility has only just begun to operate, but I trust that we will
be able work together to maximize proﬁts from power
generation while minimizing running costs.
Additionally, through the power sales business operated by
Takuma Energy, weʼre able to give something back to the local
community together with Takuma, including by supplying
power to local facilities. I look forward in the future to joining
together to create and apply new value through businessinitiatives and continued exchanges.

combustion gas puriﬁcation, which were new businessdomains, the company earned our trust and made us conﬁdent
that our concept would in fact be viable and proﬁtable. In thisway, a process that included numerous discussions ultimately
led to a facility that provided both economy and stability. I will
never forget how we completed the worldʼs ﬁrst system tosupply high-quality CO2 by purifying combustion gases
through a joint demonstration project.

TAKUMA CSR Report 201920

Contributing to the development of the sugar industry by helping leadthe way to success in the form of stable production and power sales

Related SDGs

Overseas business: Biomass Power Plant Construction Project in Thailand

Contribution of energy supply in Thailand
Fea t ure

Thailand is the worldʼs leading producer of sugar and thesecond-largest exporter of the commodity in the world. Since
our establishment in 1974, we have become one ofThailandʼs premier sugar manufacturers. Recently, in
addition to the sugar business, we are committed to
becoming a producer of electricity using the renewable fuelbagasse (ﬁber remaining after sugarcane is crushed).
We have used bagasse-ﬁred boilers from Takuma since ourcompanyʼs founding. More recently, we installed four more
Takuma boilers to obtain a stable supply of steam andelectric power in our new plant in Udonthani. Thailand
needs a growing energy supply, and we look forward tocontributing to the sugar business here by supplying clean
energy from Takuma biomass-fueled boilers. It is our hopethat Takuma and Siam Takuma will continue to provide
plants engineered to facilitate environmental conservationand industrial development.

Construction site

Bangkok

Located about 550 kilometers north-northeastof the capital Bangkok, Udonthani means“northern town” in Sanskrit.

21

TAKUMA CSR Report 2019

Udonthani(Thailand)

Mr. Jetsada Wongwatanasin
Managing Director
Thai Udonthani Power Co., Ltd. (TSM Group)

TAKUMA CSR Report 201922

Contributing to the development of the sugar industry by helping leadthe way to success in the form of stable production and power sales
Overseas business: Biomass Power Plant Construction Project in Thailand

The customer for this project is an energy company inThailand that operates a power boiler plant fueled by ﬁber
remaining after sugarcane is crushed, which is known asbagasse.
Sugarcane harvested in the area is pressed at the adjacentsugar mill to produce sugar. By using the bagasse generated
during that process to generate steam and electricity, thecustomer is able to use those products to power the plant
and to sell surplus power back to the grid.

Customer
Project name
Fuel
Steam conditions(Existing plant)
Customer
Project nameSteam conditions

As part of the project, we delivered a new two-boiler
power plant in order to supply additional energy (in the formof steam and electricity) needed as a result of an expansionof the customerʼs sugar plant.
We had previously delivered the facilityʼs existing
two-boiler power plant. Going forward, our four-boiler
bagasse-fueled power boiler plant will contribute to thecustomerʼs ability to produce sugar in a stable and consistentmanner while efﬁciently selling surplus power to the grid.

Thai Udonthani Power Co., Ltd. (TSM Group)
N-6500H Bagasse Fired Boiler
Bagasse170 tons per hour 4.2 MPaG 450 C 2 boilers(delivered in January 2019)
TSM Power Co., Ltd.
N-5000H Bagasse Fired Boiler
150 tons per hour 4.2 MPaG 450 C(delivered in November 2012)

Plant construction process

Siam Takuma procured materials and equipment needed for the project andcarried out construction and commissioning work with a focus on staying onschedule and ensuring worker safety.

Boiler plant construction starts with the construction of the boilerbuilding and then proceeds with the installation of machinery,
piping, electrical equipment, and other components. Once those
steps are complete, the entire facility undergoes adjustment andcommissioning processes, and performance is veriﬁed before it istransferred to the customer. We carried out these tasks in line with aconstruction schedule and work procedures that had been carefully
formulated based on our extensive experience.

FeatureThis feature introduces the thoughts of the engineering coordinatorfrom Takuma and the construction coordinator from Siam Takuma(Takumaʼs Thai subsidiary) on the delivered systems.

Takuma focuses on getting work done safely while taking steps
to ensure that materials and equipment are delivered on time andin line with the schedule and that all parties, including
subcontractors, are able to communicate smoothly and effectively.
In such construction projects, it is extremely important to work
closely with the customer while building a trusting relationshipduring the construction process, which can take a long time.

Electricity
Steam
Biomass

Water
Gas
Air

Message from the construction coordinator

2 boilers
Ash

At Siam Takuma, I am in charge of construction and commissioning work for Takuma

Ashboilers, and also responsible for safety and quality control management at construction sites
and subcontractor factories. I also handle correspondence with Takuma to conﬁrm
speciﬁcations and requirements.

Message from the engineering coordinator

In this project, we installed two bagasse-ﬁred boilers at Thai Udonthani Power Co., Ltd.,
which was already operating two Takuma boilers. Challenges included integrating the new

Atsushi Nishina

systems into the existing plant, which was operating at the time, and keeping to a tight

Section 3, Energy Engineering Department 2
Project CenterIn this project, the customer already had experience operating a pair of Takuma boilers that had
been delivered in the past. In light of the companyʼs favorable evaluation of our boiler plantʼsoperational track record and technological reliability, we were eager to plan and design a system sothat we could deliver a high-quality product that would meet the customerʼs expectations.
I look forward in the future to planning and designing even better plants that take into accountTakumaʼs record of success in Japan and overseas and to working closely with Siam Takumaʼs highly
experienced staff so that we can supply high-quality plants that satisfy customersʼ requirements.

23

TAKUMA CSR Report 2019

construction schedule.
Thanks to the cooperation of the customer and Takumaʼs Head Ofﬁce, we were able toTeekatat
Promsungyang

ﬁnish the construction and commissioning work generally on schedule. I was relieved andManager, Construction Section

contribute to the supply of renewable energy in a country where biomass fuels are plentiful.

proud as I watched the row of four boilers begin operating together.
Takuma boilers are famous in the sugar industry in Thailand, where customers expect us toSiam Takuma Co., Ltd.
(Shown at right)

TAKUMA CSR Report 201924

Introduction to Takumaʼs Businesses

1.Environmental Plant Business■ Receiving the Japan Resilience Award (Resilience Grand Prize) 2019 Grand Prix
The Imabari City Waste Management Center, which received the Japan Resilience Award(Resilience Grand Prize) 2019, incinerates solid waste from about 160,000 residents of the city of
Imabari and uses the resulting thermal energy to generate electricity. The plant is the first solid
waste treatment facility in Japan to adopt the “Phase Free” concept, allowing it to function as a place
where residents can gather and enjoy interaction with other members of the community during
times of normal operation and as a designated evacuation center where residents can seek refuge intimes of disaster. The facility has incorporated procedures such as disaster prevention training andevacuation center operation into its operation in order to ensure it can serve as a space whereresidents can evacuate with peace of mind in the immediate aftermath of a disaster.
The plant received the Grand Prix in recognition of these advanced and extensive disasterprevention initiatives.
* Japan Resilience Awards
The Japan Resilience Awards recognize advanced companies and organizations that have undertaken activities,
technology or product development programs, or other initiatives to help make their country, region, people, orindustry more resilient in an effort to build a next-generation society that is resistant to the effects of disasters.

At the award ceremony

Imabari City Waste Management Center
Phase Free initiative

Normal operation

Strengthening our value chain and＋supplying facilities that create new value

Solid waste
treatment

Always (normal operation)

Waste treatment ● Environment awareness-raising activities● Events ● Supply of power to the community ● Resident activities● Communication of facility information●

We receive orders for a broad range ofservices, from construction to maintenance.
Since constructing Japanʼs first fully continuous mechanicalEnergy from Waste plant in 1963, Takuma has delivered Energy
from Waste plants for more than half a century as a leading
company in its industry. To date, weʼve delivered more than360 plants in Japan, including Energy from Waste plants withsome of the largest processing capacities in Japan (at 1,800
tons per day) and methane gasification facilities.
During FY2018, we received two orders for new municipal solid
waste treatment plants, one for the Osaka City・Yao City・
Matsubara City Environment Facilities Association (located in
Osaka Prefecture), and one for the Ariake Living Environment
Facilities Association (located in Fukuoka Prefecture). We also
received a total of four orders for primary equipment
improvement work and equipment renovation work for customers
including the Oshima District Cooperative of Municipal Solid
Waste Management (located in Hokkaido Prefecture) and the Cityof Hitachiota (located in Ibaraki Prefecture). We also received
orders for overhaul work, regular adjustment, and maintenanceinspections from local governments, and weʼre working hard tomaintain plant performance and stable operation.

Weʼre seeing steady growth in orders forfiltration systems.
Takuma also has more than 50 years of experience in water
treatment, another key aspect of the Environmental Plant

25

TAKUMA CSR Report 2019

Business. Our products excel particularly in advanced wastewater
treatment technologies, and weʼve delivered numerous upflow
moving-bed filtration systems (Uniflow Sand Filter).
During FY2018, we received orders for sand filtration systems
and other products, and order volume is generally in line with
our goals for the first year of the current Medium-Term
Management Plan.

Weʼre helping build a sustainable society.
Noteworthy accomplishments during FY2018 included
receipt of the Grand Prix, the most prestigious award at the
Association for Resilience Japanʼs Japan Resilience Award(Resilience Grand Prize) 2019, together with Imabari City
(Ehime Prefecture), NPO Imabari Center, and Imabari High
Trust Co., Ltd. The accolade recognized advanced and extensive
disaster prevention initiatives carried out by the four partners
at the Imabari City Waste Management Center, a facility that
we delivered in FY2017.
In this way, we will continue to supply safe facilities thatinspire peace of mind and comfort on the part of local
residents, enhance operations and service, and strengthen ourvalue chain in areas such as plant maintenance and operation.
The United Nations Sustainable Development Goals wereadopted in 2015, and the Paris Agreement came into force in2016. Going forward, Takuma will work to help build asustainable society by striving to reduce its environmental
impacts.

The facilityʼs gym is used for resident activities.

The facility supports events by local NPOs.

Introduction to Takumaʼs Businesses

Officer
Hidetoshi Tomita Executive
Executive Manager, Environmental Plant DivisionPower
generation

In times of emergency (natural disasters)

Continuation of waste treatment ● Disaster waste treatment● Evacuation center ● Supply of power to evacuation centers● Provision of space for evacuees ● Communication of disaster information●

The gym can be used as an evacuation center.

The facility supports evacuation center
operation by local NPOs.

Equipment-focused initiatives (Resilient facilities and equipment) Organizational initiatives (Personnel support and community development)■ Opening Solution Lab, a next-generation facility that utilizes ICT
Since opening in 2004, Takumaʼs Comprehensive Operation Support Center has provided
remote monitoring and operational support for municipal solid waste treatment facilities. In
2019, we opened the Solution Lab with the goal of further enhancing the Centerʼs functionality
by augmenting the expertise itʼs accumulated to date with use of operational and maintenancemanagement data obtained by means of the latest information and communications
technologies (IoT, “Big Data,” and AI). As a result, it is able to offer optimal, high-quality
operational support services in partnership with group company Takuma Technos.
The Solution Lab will move to the sixth floor of the tentatively named Takuma Building New
Wing (Training Center)*, which is being built at our Head Office campus.
* The Takuma Building New Wing, which is scheduled to be completed in October 2020, is a six-story,
next-generation wood structure built using cross-laminated timber (CLT) and fireproof laminatedwood. The structure was selected as part of the Ministry of Land, Infrastructure, Transport andTourismʼs FY2018 Sustainable Building Leading Program (Leading Wood Structures).

Operation andmaintenance support

Three roles of the Solution Lab
Customer issue resolution
and research

Human resources development
and technology training

TAKUMA CSR Report 201926

1.Environmental Plant Business(Related SDGs)

Municipal solid waste treatment plants built recently are required to offer far-reaching performance and functionality, including
increased generating efﬁciency and recycling rates, reduced greenhouse gas emissions, enhanced facility resilience, and longer
service lives.
To meet precisely these demands from society and customers, Takuma delivers safe facilities that inspire peace of mind by taking
maximum advantage of the advanced technologies and expertise that have been fostered by its extensive track record of projects.

■ Plant construction●■ Primary equipment improvements
Municipal solid waste treatment plants must operate for extended periods of time, but their equipment must be updated once 20 or more years
have passed since the start of operation. In addition, changes to applicable laws and social conditions may necessitate large-scale modiﬁcations.
Takuma draws on the sophisticated heat utilization technologies and energy-saving technologies it has accumulated as a boiler andenvironmental plant manufacturer to carry out high-value-added and large-scale renovation projects. In this way, we are able to help extend
facilitiesʼ service life while lowering CO2 emissions.

Example of a primary equipment improvement project

Stoker-type incinerators

Energy from Waste plants must process waste in a safe and stable manner. Takuma stoker-type incinerators, which are one of our
ﬂagship products, excel at safe, stable combustion and generate lower CO2 emissions than other designs that require auxiliary fuel.
By combining a stoker-type incinerator with other technologies such as high-efﬁciency power generation and advanced exhaust gas
treatment, weʼre helping municipalities around Japan solve their solid waste treatment issues.
Steam

A
2

B

Circulation of ﬂy ash

Technology for circulating ﬂy ash collected by a ﬁlter-type dust
collector reduces the amount of ﬂy ash requiring ﬁnal disposal.

Steam turbine
generator

3

BoilerExhaust gas recirculation

Exhaust gas recirculation technology
limits the generation of toxic substances.

Measures to recover energy

Improvement of heat recovery

・Installing boilers on

water-injection furnaces
・Expanding boilersʼ
heating surface

Measures to save energy

Improvement ofsteam turbine capacity

Enhancement of
combustion equipment efﬁciency

Improving generating
capacity by increasing
steam intake capacity andoptimizing design features

Improving stable combustion bychanging furnace shape andstabilizing the volume of steam
generation and power generation

Control changes
Introducing inverters
for speed and airﬂow
control

Raising efﬁciency
Raising the efﬁciency ofelectric machinery andother components

Exhaust gas

Economizer
Catalyzer■ Maintenance

Filter-type
dust collector

1

1A
StokerIncineration of solid waste

・Solid waste introduced into theincinerator burns at a temperature of
850 C or higher as it moves on thestoker (a step grate stoker system).

●

B

2

Stack

3

Use of steam・Heat produced during the incineration process is recovered by theboiler and economizer and used to produce steam, which ﬂows
through a steam turbine generator to generate electricity.
・Steam also serves as a heat source for hot water, heating, cooling, andother uses in the plant and nearby facilities.

Processing of exhaust gas

・Toxic substances in exhaust gas ﬂowing

out of the boiler and economizer are
removed by a ﬁlter-type dust collector
and catalyzer so that they do not remainin smoke generated by the plant.

Combustible waste
Methane gas

Garbage
Wet paper

Methane fermentation tankFermentation
residue
Plastics, etc.

Steam

Electricity
generation
Gas-powered
generator

Repairing an incineratorʼs refractory

Maintaining a conveyor

Electricity
generation

Steam turbine generator
Exhaust gas

Incinerator and boiler

Exhaust gas
treatment system

The long-term turnkey operation business, in which customers enter into contracts covering both operation and maintenance management fora term of 10 to 20 years, has become the most common approach in the industry in recent years, for example in the form of DBO projects. The
Takuma Group operates many facilities using this approach.
Weʼve been introducing, a comprehensive operation, maintenance, and management support system that we developed in
FY2016, to these facilities in an effort to improve our operation and maintenance management services. Furthermore, weʼre offering additional
support for operation while helping customers resolve issues by using data collected from facilities we operate by the Solution Lab (see page 26).
We will continue to meet the needs of customers and society by making maximum use of the Takuma Groupʼs technologies and expertise,including maintenance management expertise accumulated by Takuma and operational management expertise accumulated by Group company
Takuma Technos.

Operating data

Electric powercompany

Sorting system

TAKUMA CSR Report 2019

Annual maintenance is essential in order to ensure stable operation ofmunicipal solid waste treatment plants. Maintenance demands bothsophisticated technological capabilities and experience, both because
waste treatment plants draw on a range of expertise and because themanner in which their equipment deteriorates over time varies with theproperties of the waste they process. Takuma takes maximum advantage of
its accumulated expertise to contribute to stable waste treatment andlong-term facility operation by developing long-term repair plans, carryingout elaborate site investigations, and then performing maintenance thathas been optimized in terms of both timing and content.

■ Long-term turnkey operation business

Methane recovery plants

Recently the Ministry of the Environment has been encouraging the introduction of methane recovery plants for use with municipal 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 Foundationʼs Chairman Award at the FY2014 New Energy Awards.)

27

Introduction to Takumaʼs Businesses

Incinerator

Stack

Operated
facility
New EnergyAwardsNew Energy
Foundationʼs
Chairman
Award

Inspection data
Maintenance 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 powerincome/expenditures

Aggregationof dataUtilization ofsystemfunctionality andprovision oftechnical support

Takuma, Takuma Technos
integrated server
Solution Lab
Central management andaccumulation of a range of data types
・Statistical analysis of data and machine learning
・Evaluation of equipment performance and failure prediction
・Visualization of service level and study of reductions etc.

TAKUMA CSR Report 201928

1.Environmental Plant Business(Related SDGs)

Takuma has delivered numerous systems utilizing advanced technologies, particularly for treating wastewater, in an effort to help
conserve the aquatic environment.
The recent trend is for plants to be called upon not only to purify water, but also to reduce power use by treatment equipment andcreate energy from sewage sludge. In an effort to meet these requirements, Takuma has been focused on developing a step grate stoker
furnace sewage sludge power generation system and commercializing technologies that use waste heat from the incineration process togenerate electricity.
Going forward, we will continue to help conserve the aquatic environment by supplying products that meet the needs of our times.

■ Water Treatment Plants●

Incoming
water path

Advanced treatment
facilities

Reaction tank facilities【Principal equipment】

Incoming
water pipe
Catchment
troughPurification air
Filteredwater

Secondary wash

Sand filter

Crude sludge

Filter layer

Excess sludge●

Aerobic tank

Filterbed
surface

The sand returns to the filter layer surface
and slowly falls while capturing SSs.

Air-lift pumpSludge incinerator 【Principal equipment】・Step grate stoker furnace sewage sludge power generation system(step grate stoker furnace and innovative step grate stoker furnace)

Drawn-off sludge

Because it contains a large amount of energy, sludge generated during the sewage treatment process has been attracting attention in recent
years as a biomass resource. We are taking advantage of our core incineration and boiler technologies to make effective use of the energy
contained in sludge by using it as a fuel to generate electricity. Following the systemʼs selection for inclusion in the Ministry of Land,
Infrastructure, Transport and Tourismʼs Breakthrough by Dynamic Approach in Sewage High Technology Project (B-DASH) in FY2013, we havereceived orders for the system from the cities of Tokyo and Sapporo.

Incinerator
Digester tanks

Air-liftpump

Sludge treatment

Steam generator
is used to dry dehydrated sludge.

Sludge treatment facility

Sludge incinerator

Boiler watersupply system

29

Exhaust gas

Sludge treatment facility 【Principal equipment】・Rotating drum-type concentrator

TAKUMA CSR Report 2019

Cleaning nozzle
Drum screen

is used to generate electricity.
Process water

Process steam

Dryer

A rotating drum-type concentrator consists of adrum-shaped screen consisting of metal wedge wirethat separates and concentrates solid and liquidcomponents from coagulated sludge as the drum
rotates. Following solid-liquid separation, sludge istransported to the exit side of the system as it isconcentrated and pushed by spiral-shaped vanes on theinside of the rotating drum. Thanks to a simple design
whose operation hinges on a slowly rotating drum
screen, the system uses less power than its conventionalcounterparts, yielding high energy savings.

Steam produced by the boiler*

Steam
Dehydrated
sludgeGenerating equipment

Binary generator

Steam from a steam generator

Generator●

Introduction to Takumaʼs Businesses

Aeration panel

Sand is washed by counter-flowing filteredwater as it falls inside the sand washer.

Filter layer

DisinfectiontankAnoxic Aerobic
tank
tank

Sand is moved toward the top of the filter while
being vigorously stirred inside the air-lift pump.

Sandwasher

Discharge

Anaerobic Anoxic
tank
tank

Primary wash

Treated water

Purified
wastewater

Final settling pond

Initial settling pond

Filter sand washing cycle

Catchment troughSourcewater

・Aeration systems ・Low power agitator (Bio Blade Mix)

Pre-processing
equipment

have delivered more than 2,700 units in Japan. A design thatcombines filtration treatment with continuous backwashing of thefiltration sand ensures stable operation and exceptional
maintainability.
The product line includes high-speed models with double or triple
the filtration speed of the standard model as well as denitrifying anddephosphorizing variants that add functionality for eliminating
nitrogen and phosphorus to standard SS elimination functionality.

Measures undertaken to improve the quality of public water
sources and the need to reuse treated sewage are spurring demand
for more advanced water treatment. Upflow moving-bed filtration
systems (Uniflow Sand Filter), which eliminate suspended solids(SSs) from water, are used in a variety of fields, including in final
processing at sewage treatment plants and in pre-processing to
remove solids at water plants. This particular model is a long-selling
product featuring proven water purification technology of which we

Water treatment plant equipment flow
Sewage intake

Advanced treatment facility 【Principal equipment】・Upflow moving-bed filtration (Uniflow Sand Filter)

Incoming
sludgeHeat produced by incinerating sludge

Waste heat boiler

is recovered and used to produce steam.

Dust collector

Process
water (*)

Combustion air

Concentrated
sludgeDehydrated
liquidCombustion air fan
N2O, a gas whose greenhouseeffect is 298 times more
pronounced than that of CO2, isbroken down by high-temperature
combustion at 900 C to 1,100 C.

Step grate stoker furnace

Ash bunker

Flue gas
treatment stack

Dust is removed from
Combustion

Photograph taken
inside the furnace

exhaust gas.

Induction fan

After exhaust gas is cooled with water mist, toxic
substances such as sulfur oxide are removed,
and the gas is released into the atmosphere.

TAKUMA CSR Report 201930

1.Environmental Plant Business
Main Recent Projects■ Water Treatment Plant BusinessTakasu Sewage Treatment Plant

The following are the main plants supplied by Takuma during FY2018.

Project nameUrado Bay Eastern Basin Takasu Sewage Treatment Plant
Sludge Treatment System Construction Part 12■ Municipal Solid Waste Treatment Plant Business● New construction

Capacity
Type: Pressurized screw press dehydrator
Treatment capacity: 225 kg-DS per hour
Location
Kochi Prefecture

Matsubara Preprocessing Plant
Project name
FY2017 Matsubara Preprocessing Plant Automatic Coarse Dust Eliminator
Renovation Project
Capacity
Type: Intermittent front-surface mixing-type screen
Speciﬁcations: 3,500 (W) 1,100 (D) mm
Project name
FY2018 Matsubara Preprocessing Plant No. 2 Concentration Tank
Sludge Scraper Update Project

Environmental Forest Center, Kizugawa
Project name
Clean Center Facility
Maintenance Project

Capacity
Incineration facility:
94 tons per day (47 tons per 24 hours 2 units)
Power output: 1,220 kW

Introduction to Takumaʼs Businesses

Capacity
Type: Sludge scraper (center-drive vertical type)Speciﬁcations: ∅17.9 m 1 unit
Location
Kyoto Prefecture

Location
Hyogo Prefecture● Primary equipment improvements

Kasai Water Reclamation Center
Project name
Kasai Water Reclamation Center Sludge Concentration Tank No. 1
Machinery and Equipment Improvement Project
Capacity
Type: Sludge scraper (center-drive post type)Speciﬁcations: ∅28 m 1 unit
Location
Tokyo Prefecture

Kumagaya Sanitation Center No. 1 Plant

The Inariyama Environmental Center

Project name
Kumagaya Sanitation Center No. 1 Plant
Primary Equipment Improvement Project

Project namePrimary Equipment Improvement Project,
The Inariyama Environmental Center, Sayama City

Capacity
Incineration facility:
140 tons per day (70 tons per 24 hours 2 units)

Capacity
Incineration facility:
165 tons per day (55 tons per 24 hours
Power output: 264 kW

Location
Saitama Prefecture

31

TAKUMA CSR Report 2019

Location
Saitama Prefecture

3 units)

Iizaka Clean Site
Project nameIizaka Clean Site Phase 2 Final Treatment Plant Seepage Water Treatment
Plant Construction Project (No. 2 Area)
Capacity
Type: Contact oxidation-type nitriﬁcation denitriﬁcation system
Speciﬁcations: 110 m3 per day
Type: Centrifugal dehydrator
Speciﬁcations: 515 kg-DS per hour
Location
Fukushima Prefecture

TAKUMA CSR Report 201932

Introduction to Takumaʼs Businesses

2.Energy Plant Business(Related SDGs)

Weʼre helping realize a sustainable society while working to resolve customersʼ issues as well as social problems
through our business activities.

Preserving the environment in the form

Promoting renewable energyWeʼre helping promote renewable energy bysupplying biomass power plants.

Weʼre helping preserve the global environment by
supplying plants that utilize appropriate technologies
and systems to protect the environment.

Making effective use ofunutilized resourcesWeʼre helping realize a recycling-based society bysupplying plants that can efficiently burn fuels and waste
products that have gone underutilized in the past.

Reducing CO2 emissions
Weʼre helping realize a low-carbon society bysupplying high-efficiency power plants.
Introduction to Takumaʼs Businesses

Contributing to local communities andthe renewable energy industry
with plants of the highest possible level of qualityof water, air, and mountain forests

Mitsuaki Adachi Executive Manager, Energy Plant Division
Managing Executive Officer

Value provided by Takumaʼs Energy Plant Business

33

Meeting growing demand witha sure track record

Biomass power as a solution forsocial problems

Our Energy Plant Business traces its roots back to thefounding of Takuma in 1938 by Tsunekichi Takuma, whodeveloped Japanʼs first high-performance boiler. Since thattime, weʼve enhanced technologies for using a variety offuels including biomass and solid waste and delivered
numerous boilers to customers (more than 600 in Japan andoverseas; a total of more than 3,220 boilers including units
that burn oil, gas, and wood).
Demand for wood-fueled biomass power plants has been
growing since Japanʼs introduction of a feed-in tariff (FIT)
program for renewable energy in 2012, and we havedelivered such facilities to many customers that havepraised our long-running track record. I am grateful for thisachievement and recognize that it is the result of our
stakeholdersʼ support. We take pride in marshalling all of
our capabilities to fill orders by supplying plants of thehighest possible level of quality.

We recently received our first O&M order for a biomass
power plant that will be delivered to a private-sector
company. Going forward, we will strive to ensure we cancontribute to customersʼ businesses in a comprehensive way
by offering a range of proposals, including for O&M projects.
Under the FIT program, biomass power is treated as asource of power that strives to facilitate medium- andlong-term autonomy while coexisting with local
communities, and it is a business that can contributedirectly to the resolution of social issues in the form of
unused lumber left on mountains and local employment.
Consequently, we look forward to helping facilitate thesustainable development of local communities and of therenewable energy industry by making a broad contribution
to customer businesses based on technologies andcomprehensive capabilities developed over many years,
even as we keep tabs on factors such as discussions of an
expected future review of the FIT program.

TAKUMA CSR Report 2019

１．Plant engineering

２．After-sales service

We supply plants that can burn a variety of fuels
and waste products in a stable manner overextended periods of time based on our extensive
track record of deliveries.

We offer service designed to ensure that plants canoperate in a stable manner over the long term
based on our advanced technologies and extensive
experience.

Biomass power plants

MaintenanceWe supply power plants that can utilize a variety ofbiomass fuels to operate in a stable manner overextended periods of time, including unused lumber,lumber waste, construction waste, PKS, pellets,
livestock waste, bagasse, and papermaking sludge.

We offer proposals for, and carry out, plans forperiodic inspections and maintenance, functional
improvements, and preventive maintenance inorder to maintain high plant performance andprevent unplanned stoppages.

Facilities that incinerate industrial waste to
generate power

O&M

We supply facilities that can recover heat in a highly
efficient manner, including by using it to generate
electricity, after burning even difficult-to-treat waste
products in an appropriate manner.

We accept orders for operation, maintenance, andmanagement over 20-year terms to reduce
workload and life cycle costs so that customers
can maximize the profitability of their businesses.

TAKUMA CSR Report 201934

2.Energy Plant Business

The following are the main plants supplied by Takuma during FY2018.

■ Energy plants
KOBE BUSSAN CO., LTD.

Daisen Biomass Power Generation Co., Ltd.

Project name
Biomass Power Plant Construction Project

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

Capacity
Fuel: Wood fuelSteam conditions (normal operation):
28 tons per hour 5.98 MPaG 480 C
Power output: 7,050 kW

Location
Hokkaido Prefecture

Location
Akita Prefecture

Chugoku Mokuzai Co., Ltd., Hyuga factory

Project nameArao No. 2 Biomass Power Plant
New Construction Project

Project name
Chugoku Mokuzai Wood-fueled Boiler (No. 2)
Construction Project

Capacity
Fuel: Wood fuelSteam conditions (normal operation):29.2 tons per hour 6.0 MPaG 425 C
Power output: 6,250 kW

Capacity
Fuel: Wood fuelSteam conditions (normal operation):
24 tons per hour 1.3 MPaG 195 C
LocationMiyazaki Prefecture

Location
Kumamoto Prefecture

Mogami Biomass Power Co., Ltd.

SARA Inc.

Project name
Mogami Wood Biomass Power Plant
Generating System Construction Project

Project name
SARA Power Plant Construction Project

Capacity
Fuel: Wood fuelSteam conditions (normal operation):
28 tons per hour 5.98 MPaG 465 C
Power output: 6,800 kW
Location
Yamagata Prefecture

35

TAKUMA CSR Report 2019

Introduction to Takumaʼs Businesses

Ariake Co., Ltd., No. 2 Power Plant

Capacity
Fuel: Wood fuel, PKS
Steam conditions (normal operation):
50 tons per hour 6.0 MPa 425 C
Power output: 10,000 kW
Location
Okayama Prefecture

TAKUMA CSR Report 201936

Introduction to Takumaʼs Businesses

3.Overseas Business(Related SDGs)

Overseas boiler plant business
The sugar business has been booming in Thailand, where Takuma has a local subsidiary. We have supported the industry formany years and have an extensive track record of supplying boilers that burn bagasse (ﬁber remaining after sugarcane is crushed)since our ﬁrst delivery in 1959.
Going forward, we will continue to tap sure technology and ﬁne-grained service based on our experience to date to help realize
the biomass-derived, Earth-friendly supply of power in not only Thailand, but also in Indonesia, Vietnam, and other Southeast
Asian countries.
*For more information on facilities delivered during FY2018, please see Feature 02, “Biomass Power Plant Construction
Project in Thailand,” on page 21.

Overseas waste treatment plant businessTakashi Manabe

Managing Executive Officer
Executive Manager, International Division

Introduction to Takumaʼs Businesses

Assessing changes in global trends in the overseas market
to ensure we can continue to contribute to
the development of industry in countries worldwide

As emerging nations develop, they experience population growth and urbanization, causing waste-related issues to manifest
themselves. Their environmental regulations and legal systems are also in a state of development, and inadequacies in
information about waste and technologies for treating it mean these countries have high expectations for Energy from Waste
technologies. We pursue sales activities, for example by studying information such as local systems and waste composition, sothat we can meet those expectations by delivering waste treatment plants that satisfy customers.
As one example, during FY2018 we conducted a viability study of a project in the Indian state of Telangana by taking advantage
of a Ministry of the Environment program. The results of the study, which we carried out
along with local governments in Japan as part of a government-industry partnership andwith the cooperation of local stakeholders in India, were reported jointly to the local
government. By making effective use of a cooperative framework that brought together
the Japanese and Indian governments, we were able to build a good relationship with thelocal government while discovering important information about local needs.
Takuma will continue to work to realize solutions to environmental problems bydelivering waste treatment plants.
Waste composition
study in Telangana

Main Recent Project (Waste treatment plant)This section introduces one of the main projects that Takuma has delivered to date.

Resolving issues by accommodating
a diversifying array of needs
The International Division is responsible for sales ofboiler plants and waste treatment plants in overseas
markets. We take pride in the fact that promoting thosebusinesses, which reduce greenhouse gases by making
effective use of non-fossil fuels while contributing to theresolution of environmental issues through the appropriate
treatment of waste, will help achieve the Sustainable
Development Goals (SDGs) that Takuma is pursuing.
Weʼve already delivered close to 400 biomass boilers tooverseas customers. Nowhere is the viability of this businessmore apparent than in Thailand, where Takuma has a local
subsidiary and where we have been supporting the sugar
industry as well as other sectors of the economy for over 60
years. In the past, biomass boilers were used to provide heatand power for equipment at industrial plants, but today
their role is diversifying as a recent global trend toward
converting to renewable energy drives expectations thatthey will function as true power plants by taking on some
responsibility for ensuring societyʼs supply of electricity.

37

TAKUMA CSR Report 2019Weʼve also delivered dozens of waste treatment plants
overseas. In recent years, the appropriate treatment of waste
has become a particularly urgent issue in developing nations.
While environmental awareness, governmental programs,
budgets, and other considerations vary from country tocountry, weʼre making preparations to ensure success in a
careful and steady manner based on these and related
developments, for example by formulating optimal schemes
by which to pursue potential orders and develop projects.

Bringing necessary, valuable products tothe international community
There is no doubt that plants that generate electricity
using Takumaʼs core technologies to burn biomass andwaste are earning recognition as both necessary andvaluable in a society thatʼs working to achieve the SDGs in aconcerted manner. Although the business environment willremain intensely competitive, we will continue to contributeto the international community by developing latentcustomer demand in a ﬁne-grained manner and supplying
solutions that meet those needs.

Lutsao Refuse Incineration Plant
Capacity
Incineration facility:
900 tons per day (450 tons per day
Power output: 28,000 kW

2 units)

Location
Chiayi, Taiwan

Message
Naoya Akasaki
Sales Section 2, International Department
International Division

Waste issue offers challenges to all countries, but speciﬁc needs and conditions vary from country tocountry. In Asia, there has been a trend away from waste disposal, which has centered on landﬁll until
now, and we believe that this constitutes a ﬁeld in which Takumaʼs Energy from Waste technologies
and experience can make a contribution. Continuous, stable operation is key to facilities that treat
waste such as Energy from Waste plants, for example, as one type of local and environmental
infrastructure. To that end, we will continue to work to ensure we can help resolve challenges in thisﬁeld while deepening our understanding and pursuing cooperation with an array of local entities,
companies, and other stakeholders from the “glocal” (think globally, act locally) perspective.

TAKUMA CSR Report 201938

CSR Activities for the Future

Sustainable Development Goals (SDGs)
Takuma is working to further progress toward the Sustainable Development Goals (SDGs) through its business activities.

To become a sustainable company while fostering andexpanding a broader range of CSR activities, we begancompiling a CSR activity roadmap in FY2011, which we havesubsequently implemented over time. In FY2012, we chose anumber of key issues based on international guidelines on
corporate sustainability reporting published by the Global
Reporting Initiative (GRI) as well as ISO 26000, aninternational standard on organizational social responsibility.
We are currently working to resolve those issues.

Each department discussed CSR issues in line with those key
issues and developed its own action program. At the end of theyear, those departments then conducted self-evaluations toassess 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

Department

As part of a larger effort to address the Sustainable Development Goals(SDGs) by supplying environmental plants and energy plants asenvironmental products to customers, Takuma has launched a series ofvoluntary internal workshops that cut across organizational boundaries tofacilitate discussions about how it can contribute to the SDGs through its
business activities and in areas outside its businesses.
We look forward to pursuing the SDGs so that we can help build asustainable society while assessing how Takumaʼs activities can make aneven more significant contribution to the SDGs.

FY2018 action program
Action plan

Self-evaluation of results

Conduct a questionnaire targeting directors in order to increase theeffectiveness of the Board of Directors. Evaluate, analyze, and report on
the results to facilitate useful discussions at Board of Directors meetings.
Share formulations of Takumaʼs basic approach, for example Management
Principles, the Takuma Group Ethics Charter, and the Takuma Group Code of
Conduct, and work to ensure that they permeate the organization and take hold.

We conducted a questionnaire targeting directors and held interviews, evaluatedand analyzed the results, and reported them to the Board of Directors.

Raise awareness among all employees of how to deal with actual
disasters through drills involving Takumaʼs safety confirmation system.

We carried out drills involving Takumaʼs safety confirmation system inAugust 2018 and January 2019, achieving a response rate in excess of 95%.
We held internal readings of the Takuma Group Ethics Charter and the Takuma
Group Code of Conduct, worked to raise awareness of social responsibility, andsought to promote conduct that accords with ethical principles.

Support for measures to increase theeffectiveness of the Board of Directors

Planning
Division

Compliance

Cultivation of a robust corporate culture

CSR
Division

Risk management

Risk management in times of disaster

GeneralAffairs
Division

Employee training on social responsibility

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

Marketing
Division

Stakeholder engagement

Development of trusting relationships withcustomers

Marketing
Division

Design of facilities that satisfy customers
through safe, stable operation

Engineering
Division

Have employees discuss what it means to take the initiative to foundtheir behavior on an awareness of social responsibility internally intheir own department in order to facilitate such conduct.
Meet customer requirements in an appropriate manner by working tostreamline communication with customers and among internal
departments.
Utilize review lists and checklists, and carry out performanceverifications during plant commissioning in order to achieve stable
operation of facilities after handover.

Improvement of construction quality

Construction
Division

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

Although we conducted at least one site construction management status check every month,
additional work was added after the facility was handed over to the customer. In each case,
we identified the cause and resolved it by taking steps to address it. While the number of such
incidents increased compared to the previous fiscal year, all additional work was minor innature, and we believe that we were able to effectively improve construction quality.

Assurance of understanding of, and compliancewith, the Antimonopoly Act

Marketing
Division

Offer training on the Antimonopoly Act and continue to implement
the Regulations Concerning Management of the Pledge ofAntimonopoly Act Compliance.

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

Enhancement and monitoring of health andsafety initiatives at worksites

SafetyControl
Division

Prevent accidents requiring leaves of more than 30 days by worksite
employees by conducting safety patrols along with construction
departments, site officials, and partner companies and thoroughly
implementing health and safety activities such as safety inspection planning.

A site employee responsible for marshalling traffic twisted his ankle on a grade
difference at a worksite and broke a bone. It will be necessary to ensure
employees exercise caution in the future regarding grade differences involving
temporary equipment and the installation of suitable lighting.

Improvement of work-life balance

Engineering
Division

Improve work-life balance by encouraging employees to use
alternative time off and annual leave time.

Despite being busy, we were able to foster awareness of the need to
improve work-life balance and meet our targets in that area.

Training and skill development for employees

Engineering
Division

We worked to improve awareness by sharing information internallyabout examples of defects, their causes, and corrective measures, andapplying that information to checklists and other tools.

Implementation of initiatives to reduce
environmental impacts

Engineering
Division

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

Initiatives to save energy and reduce CO2
emissions

Engineering
Division

Work to improve employee knowledge by sharing information aboutcases in which design defects have been caused by insufficientknowledge or experience at departmental and other meetings.
Formulate and propose plans for new technologies and businesses that would
allow us to help reduce environmental impacts in the environmental and energy
fields while differentiating ourselves from competitors in the same industry.
Actively contribute to the resolution of environmental problems by
pursuing measures to save energy and reduce CO2 emissions at plants
during the planning stage.

Contribution to the communities around ourworksites

Engineering
Division

Work to further beautify the neighborhoods in which worksites arelocated by encouraging employees to participate in local clean-up
activities.

Employees have a high level of awareness of the importance ofparticipating in volunteer clean-up activities, and many employees
actively participated in such initiatives.

Fair operating
practices

Compliance with the Antimonopoly Act

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

Environment

Contributions to resolving
environmental problems

Community
involvement anddevelopment

Contribution to society

TAKUMA CSR Report 2019

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

CSR Activities for the Future

Safety and quality of products and services

Employee skill development(skill enhancement)

39

CSR issue■ Topics SDGs Initiatives

Corporate governanceConsumerissuesLabourpractices andhuman rights

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 theenvironmental and energy fields in which Takumaʼsbusiness operates grows increasingly diverse day by day,and that environment remains one of intensifying
competition. Our technological capabilities in theenvironmental and energy fields, which we have refinedover many years of experience, form the basis of our CSR
management as well as our greatest strength as we look tomake a broad contribution to society. We will continue todraw on this strength in our activities going forward.

Results of the customer satisfaction survey conducted during the previous fiscal
year were reported internally at the beginning of the fiscal year and relayed to
the QM Committee. Evaluations of our coordinators exceeded targets.
We made use of reviews and checklists in the design process and verified
that stable operation is possible during a performance verification carriedout during the commissioning process prior to plant handover.

We actively proposed improvements incorporating measures to saveenergy and reduce CO2 emissions.

TAKUMA CSR Report 201940

Corporate Governance●

Basic policy on corporate governanceout appropriately and that officers carry out their operational
responsibilities by means of a process that is clear, rational,
efficient, and legally compliant. For that reason, we believethat understanding the Corporate Governance Code andputting it into practice in an autonomous and systematicmanner are top-priority management issues.

In order to safeguard and steadily increase Takumaʼs
corporate value over the long term, it is essential not only toensure the development of the companyʼs businesses, but also
to clearly define governance in corporate operations̶that is,to ensure that shareholdersʼ oversight of operations is carried●

Board of Directors●

As of June 26, 2019, the Board of Directors was comprised ofsix directors (excluding directors who are members of the Audit& Supervisory Committee) and five directors (of whom four wereoutside directors). The Board of Directors meets regularly once amonth as a rule and whenever else it is necessary to makedecisions about important issues related to business
management and issues established by law and ordinances, aswell as to oversee the execution of the directorsʼ duties.

Directors

Including the following outside directors:

11 (10 men and 1 woman)

4 (3 men and 1 woman)●

Audit & Supervisory Committee

An Audit & Supervisory Committee that consists of five members,of whom four are outside directors, is responsible for accounting
and operational audits. Members of the committee attend
important meetings, including those of the Board of Directors andthe Committee of Executive Officers, and they strive to understandand observe the status of business execution in a timely andappropriate manner. Drawing on their professional background andexperience, they express their opinions as necessary from an
objective perspective, and they conduct strict auditing of thebusiness execution performed by the directors. To facilitate theeffectiveness of audits carried out by the Audit & Supervisory
Committee, the representative director holds regular meetings withcommittee members to ensure good communication.

Executive Officers●

Takuma has established an Audit & Supervisory Committeeʼs
Office to help carry out the committeeʼs work.
●

Human Resources & Remuneration Advisory Committee

To augment the above structures, we have established a Human
Resources & Remuneration Advisory Committee comprised ofindependent officers, representative directors, and the officer incharge of human resources. The purpose of the committee, amajority of whose membership consists of independent outside
directors, is to increase transparency and objectivity in the selectionof candidates for director and executive officer positions and in thedetermination of the compensation and other terms so as toenhance the oversight function of the Board of Directors.

●

Basic approach●

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 and CSR in his or her division, each division orcenter manager is appointed as a Compliance and CSR
Promotion Administrator. As persons who implementawareness and education in compliance and CSR in theirrespective departments, department managers are appointed
as Compliance and CSR Promoters. The meetings conductedwithin this mechanism include regular meetings anddepartmental meetings.

Reporting
Auditing of accounts
Appointment
and removal

ReportingGeneralMeetingof
Shareholders

Reporting andstatement of views

Appointment
and removal

ReportingAccounting
Auditors

Reporting

Cooperation
Assistance

Audit &
Supervisory
Committee

Audit &
Supervisory
Committeeʼs
Ofﬁce

Appointment
and removal

Education, instructions, and reporting

Compliance & Observing and guidance
CSR Promotion
Division
Reporting

Reporting

Cooperation

AdviceDiscussion and reporting

ReportingCommittee ofRepresentative Executive Ofﬁcers(Deliberation of
Director
important matters)

Selection, dismissal, and supervision

41

TAKUMA CSR Report 2019

President

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 as on
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.
●

Departmental meetings

Promotion members convene departmental meetings oncea quarter, with educational training aiming at the permeationof compliance and CSR in each department. After
departmental meetings, promotion members implement
compliance and CSR promotion education in their respective
departments using training materials or in-house educational
materials and report the result to the Secretariat.
●

Takuma Group Coordinating Committee forCompliance & CSR Promotion

We are 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. During FY2018, we
invited representatives of group companies to participate in
two meetings of the committee.

Committee of Executive Officers

Compliance & CSR Promotion Organization
Internal auditing

Internal Audit
Department

Internal auditing

Discussion of and reportingon important matters
Issuance of instructions and Executive
communication of information Ofﬁcers

Divisionsandcenters

Chairman (Executive Manager of the Compliance & CSR Promotion Division)
Secretariat (CSR Department)
Each division and center
Each department

Execution of
responsibilities

Appointment
and removal

Corporate governance structure

Regular meetings

Board of Directors

Reporting

Auditing

Human
Resources &Auditing andRemuneration
supervision
Recommendations
Advisory
Committee
Board ofDirectors

Variouscommittees

according to that Code. When the unexpected occurs,
emergency headquarters are established with the company
president as the director in charge of risk management, andan organization is put in place in order to minimize andprevent further damage through prompt action.
Internal control, constructed and evaluated in order to reporton and prevent misstatements in our financial reporting, isbased on the Financial Instruments and Exchange Act. This
internal control on financial reporting for the Group has resulted
in reports that indicate this system has been effective.
In this way, we will continue to work in the future to ensure
thorough compliance while carrying out business properly
and efficiently while also deepening risk management.

Corporate GovernanceIn order to accelerate management decision-making and clarify
where management responsibilities are placed, we have adopted an
executive officer system in which we appoint executive officers whoare entrusted with the responsibility of executing our businessactivities. As of June 26, 2019, there were 15 executive officers(including those who also serve as directors). Moreover, we havealso established a Committee of Executive Officers, which is chairedby the president/chief executive officer, as an organization that
deliberates matters that are brought up at meetings of the Board of
Directors and other important issues related to the execution of ourbusiness activities. This committee communicates and provides
direction about items decided by the Board of Directors and otherimportant items related to the execution of our business activities
appropriately to the divisions that are to execute them.

Audit & Supervisory Committeeʼs Office

Takuma has adopted a Basic Policy for Establishment of anInternal 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 to changing
circumstances.
Working towards thorough compliance, Takuma built acompliance promotion organization in FY2006 in order tocontinuously implement enlightenment and educational
activities that make corporate ethics, related laws andordinances, and internal rules fully understood. To control
the danger of loss, we have also prepared a “RiskManagement Code” that determines the person in charge ofeach risk, and we set up our risk management organization(As of June 26, 2019)

Takuma Group
Coordinating Committee forCompliance & CSR Promotion

Compliance & CSR Promotion Administrator (division or center manager)

Compliance & CSR Promoters (department manager)
Enlightenment/education
Staff members

Compliance & CSR promotion structure

TAKUMA CSR Report 201942

Corporate Governance
Takuma has formulated a “Business Continuity Plan” based on the following policies to ensure proper and appropriate continuityof business operations in the event of a large-scale disaster, pandemic, or other emergency:
Takuma follows a “Risk Management Policy” that connects
company-wide risks and separately classifies them into
“project risks” related to our core business, i.e., plant
construction; “DBO project risks” and “DBO project operation,
maintenance and management risks” related to our DBO
business; and “potential risks,” “actualized risks,” and “financial
reporting risks” related to other corporate business activities.

We are also building a risk management organization andconstructing a system of risk management and promoting
the strengthening of management for group companies aswell through our Takuma Group Coordinating Committee
for Compliance and CSR Promotion.

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 andpartner companies to continue business operations.
３．Earn the trust of numerous stakeholders, including employees, their families, shareholders, and nearby residents,and fulfill social needs by continuing business operations.

【Disaster rule system diagram】

Risk Management Policy

Risk Management Policy[Basic purpose of risk management]
Risk refers to all phenomena that interfere with the Groupʼs ability to achieve its business objectives or cause
losses or harm 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 CodeCrisis Management CodeOverseas Risk Management CodeDisaster Prevention Management Code[Risk management action guidelines]
１．The president and CEO is responsible for risk management at Takuma.
２．All officers and employees participate in risk management activities.
３．Risk management activities are carried out in accordance with applicable guidelines such as the Risk
Management Rules.
４．Risk management activities are carried out in line with the Medium-Term Management Plan and annual plan,
and we work to make improvements on an ongoing basis.
５．When risk manifests itself, we respond by taking responsible action quickly to minimize any damage andcreating provisional organizational entities as necessary.
６．Group companies carry out risk management activities in accordance with their own policies and plans, withsupport from Takuma.

ReportingPresident
Committee of
Executive Officers

Request for decision/
reporting

Evaluation

Report oninternal control
evaluation
concerning
financialreporting

Request for decision/
reporting

Reporting

Reporting

Risk Management
Department
Internal Audit
Department

Project risk
DBO Project risk
DBO Project operation, maintenanceand management risk

Planning/
reportingPotential risk

Takuma Group
Coordinating Committee forCompliance & CSR Promotion(including risk matters)
Risk management structure

TAKUMA CSR Report 2019

Storm and Flood Damage Countermeasure ManualBusiness Continuity
Plan (BCP)

Novel Influenza Countermeasure Manual
Safety Confirmation System Administration Rules

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, shareholders reports,
annual reports in English and other business information, all on our website.

[Takuma website > IR information]
https://www.takuma.co.jp/english/investor/index.html
Treasury stock:
0.1%

Individuals, others:
8.7%

Each
division

Corporationsin Japan:
15.5%

Financialreportingrisks

Evaluation

BCP
activation

Earthquake Countermeasure Manual

Actualized risk

Evaluation

43

Risks
concerning
corporate
activities* Based on Fire Service Act
Enforcement Regulations

Corporate Governance

Board ofDirectors

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

Fire Prevention PlanGroup
companies

Foreignindividuals:
28.3%
Shareholders Report

Financial institutions
and stock brokerages:
47.4%
Composition of shareholders(as of March 31, 2019)

TAKUMA CSR Report 201944

Corporate GovernanceDirectors

Executive Officers

Takashi Manabe

Managing Executive Officer

Akira Taguchi
Executive Officer

Ryoji TaniManaging Executive Officer

Hidetoshi Tomita
Executive Officer

Norito Uchiyama Mitsuaki Adachi
Managing Executive Officer

Norio Maeda
Executive Officer

Managing Executive Officer

Kunio Hamada
Executive Officer

Keiji Nakamura
Executive Officer

Corporate Governance

Message from a New Outside Director
Tomomi Fujita
Outside Director(Audit & Supervisory Committee Member)(Back row, from the left)

45

Minoru Murata

Osamu Iwahashi

Tomomi Fujita

Hiromichi Satake

Yasushi Enomoto

Outside Director(Audit & Supervisory
Committee Member)

Outside Director(Audit & Supervisory
Committee Member)

Outside Director(Audit & Supervisory
Committee Member)

Outside Director(Audit & Supervisory
Committee Member)

Director(Audit & Supervisory
Committee Member)

Hideki Takeguchi

Kengo Numata

Takaaki Kato

Hiroaki Nanjo

Tsuyohito Nishiyama

Koji Tanaka

Director
Senior Managing
Executive Officer

Director
Executive Vice President

Director
Chairman
Executive Officer

Representative Director
President andChief Executive Officer

Director
Senior Managing
Executive Officer

Director
Executive Officer

TAKUMA CSR Report 2019Iʼve been involved with corporate legal affairs for about 15 years as an attorney. During thattime, an especially large proportion of my work has centered on legal work involving
manufacturing companies (including consultations, negotiations, and lawsuits involving
intellectual property rights and various domestic and international transactions). In addition toteaching a weekly class through a semester at Kyoto University Law School as a lecturer, I serve asa director of the Licensing Executives Society Japan, whose membership includes top corporate
management and leaders, businesspeople, attorneys, patent attorneys, and scholars.
Iʼm looking forward to taking advantage of my experience and legal knowledge to contribute to
the growth of Takuma, Japanʼs leading plant and boiler manufacturer.
Takuma has integrated many objectives related to the 17 Sustainable Development Goals(SDGs) that were adopted at a United Nations summit in 2015 into its businesses, particularly
clean water and sanitation (Goal 6), affordable and clean energy (Goal 7), and protection of thenatural environment (Goals 14 and 15). Takumaʼs business, and the role it plays in society, will
likely become increasingly important going forward. It is a great honor for me to be chosen toserve as an outside director (specifically, as a member of the Audit & Supervisory Committee) at
Takuma in a new era such as the one we face today, and I will do my best to fulfill my role.
Other SDGs include gender equality (Goal 5) and economic growth and productive
employment (Goal 8). As a female outside officer, I hope that I will be able to further improve
Takumaʼs corporate value by helping to tap the potential of a diverse workforce that includes
woman and boosting productivity.

TAKUMA CSR Report 201946

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
and never 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

Working with Our Employees
in FY2018, sets forth a series of measures to address ourworkforce, which is an essential resource and thefoundation of all efforts to advance our businesses. Toppriority is given to pursuing hiring and training, and tocreating an environment in which to ensure each and every
employee enjoys an engaging and motivating work
experience while giving full play to all of his or her abilities
over the long term.

Number of employees852(including 784 men and 68 women)

Average age

43.3

Average years of service

15.4

Attrition rate

6.3% (past 3 years)*As of March 31, 2019

Takuma is involved in a variety of employee retention programs to ensure employees remain at Takuma over the long term.

■ Workstyle reform initiatives●Weʼre working to deepen womenʼs understanding of Takuma
while boosting the number of female applicants and hires
through such means as including content speciﬁcally for female
college students on our website and hosting information
meetings just for female students.
In addition, weʼre working to increase the number of female
employees in management positions and the number of female
employees on the main career track (including individuals who
have been tentatively offered positions) as of March 31, 2021, to●

20, which would be double the corresponding number as ofMarch 31, 2016, by putting in place a workplace environmentthat facilitates ﬂexible workstyles and continued employment.

Number of newly hired graduates over the last 5 years
by gender (main career track)
FY2015FY2016FY2017FY2018FY2019

Men

19

18

19

17

16

Women

1

1

2

2

2

Total

20

19

21

19

18

■ Child-raising and nursing care support measures

Employee data

The 12th Medium-Term Management Plan, which began■ Initiatives to promote the participation of female employees in the workplace

Initiatives to boost productivity

In addition to working to review business processes and streamline and improve operations in individual departments, weʼreworking to boost productivity by deploying a videoconferencing system and automating work by means of RPA.

We offer the following work programs as measures to help employees balance work demands with their child-raising andnursing care responsibilities.
●

Nursing care leave●

Child-raising and nursing-care leave●

Reduced working hours program●

Flex time program●

Telework program

Impressions from an employee who has taken advantage of Takumaʼs child-raising leave (male, 20s, engineering position)
Because our ﬁrst child still requires a lot of care at age 3, I took child-raising leave for about 11 months starting one
month after our second child was born so that my wife could go back to work. I consulted with my supervisor before
returning to my position, and now Iʼm working in the same department as I was before I took the leave. Thanks to the
support of my supervisor, colleagues, and the company, Iʼve been able to participate in the same work as I did before
taking the leave.

■ Employee health initiatives
In addition to stress checks and examinations to assess the riskof adult-onset diseases, our annual health checkups include
cancer and gastric checks for employees who wish to have them.
We also hold health consultations by an occupational
physician (once a month) and counseling sessions by a clinicalpsychologist (twice a month) as part of our commitment tofacilitating employeesʼ physical and emotional health.
We encourage employees with excessive working hours to meetwith an occupational physician for guidance. The Human Resources
Department also interviews such employees and their supervisors
so that we can study and implement corrective measures after thecause of the excessive hours has been pinpointed.

Human Rights and Labor Practices

Using RPA tools to streamline operations
Environmental Engineering Department 1 is responsible for planningmunicipal solid waste treatment plants. The process of planning optimalplants that align perfectly with customersʼ needs requires an extremely
large number of complex calculations that span multiple ﬁles. Among
those calculations are operations in which input parameters must be
varied little by little in an effort to search for the optimal system, withthe result that the process has many, simple steps. To reduce theamount of time taken up by these calculations, we have deployedrobotic process automation (RPA) tools, and we succeeded in saving
about 1,000 hours by means of that approach during FY2018.

●

Putting in place an environment that encourages employees to take annual leave

As a way to promote mutual understanding and cooperation, employees announce their plans in advance for ﬁve of theirannual paid time off days to their counterparts in the workplace. This initiative is conceived to allow employees to takeadvantage of paid time off in a well-planned manner.

Weʼre working to enhance employee ability, technological skills, and management capability by offering grade-speciﬁc
educational programs, from new hires to management candidates.

Newemployee
training

Technical
presentationby 2-year
employees

Thesisdiscussionby 5-year
employees

Presentation
by 10-year
employees

Mid-career
training

Management
training

We hold several technical training sessions a year in order
to increase employeesʼ technical knowledge, including
lectures by university professors and outside researchers andpresentations by Takuma engineering employees about theirwork responsibilities and research themes.

To support employee skill development, we reimburse
employees for the cost of acquiring various licenses and offer
incentives for earning professional certiﬁcations.

To improve employeesʼ language skills, we host the TOEIC
test twice a year and offer incentives to employees who earna high score.

47

TAKUMA CSR Report 2019

TAKUMA CSR Report 201948

Human Rights and Labor Practices

Efforts for Occupational Safety and HealthWorking with Our Employees■ Objective management andhuman resources evaluation system

At the beginning of each fiscal year, operational goals are
determined based on departmental policies and individual
employeesʼ work issues and expected roles. A mid-year
interview in September and annual review interview thefollowing March offer opportunities for supervisors to offer
feedback to their subordinates by evaluating their job
performance and to receive advice and requests from
employees. In this way we strive to foster subordinatesʼ
abilities and improve their motivation throughcommunication between supervisors and their subordinates.

■ Self-reporting system
We have introduced a self-reporting system that allows
employees to communicate their thoughts on topics such as
their future career path directly to the company every three
years. Through this system we are working to assess
employeesʼ awareness, needs, and issues and to apply that
information to human resources measures.

■ In-house commendation system
Each year on June 10, we hold an awards ceremony tocommemorate the anniversary of the companyʼs founding.
●●●

Takuma Prize:
Employees who have helped improve operations or who
have exceptional achievements in community service
Invention and idea commendations:
Employees who have earned patents or other intellectual
property rights
Safety and Health Award in Construction Division:
Foremen at sites without accidents or damage●

Takuma Technical Review Outstanding Paper Award●

Qualifications acquisition commendations●

Length-of-Service Award(every 5 years of service after 20 years)

We maintain a system where any construction or
installation work starts only after the safety and healthmanager or other responsible official in each department
conducts a successful safety inspection based on safety andhealth plans for the construction 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.

We have created a work group transfer system to facilitate
movement from clerical and labor positions to the main
career track so that motivated and skilled employees canmake use of their abilities. We also provide opportunities for
employees to be promoted to management positions.

●

FY2018

Number of safety
inspections done: 163(Initial inspection pass rate:
95%)
A safety inspection meeting■ Safety patrols and safety talks

Number of reemployed individuals over the past 5 years
FY2014 FY2015 FY2016 FY2017 FY2018
Number of employees reaching retirement age

12

11

3

5

11

Number of employees desiring reemployment

10

10

2

5

10

Number of reemployed employees

10

10

2

5

10

Based on an annual plan, safety patrols are carried out atworksites by the Safety and Health Committee (comprised ofcommittee members and advisors), Safety Control
Department, and construction division along with safety
talks in a precisely targeted and efficient manner.
Safety patrols focus on identifying and eliminating risks as
early as possible, while safety talks are conceived to prevent
occupational accidents and raise employeesʼ safety
awareness by offering an opportunity to hand out andexplain materials such as examples of accidents. Bothprograms help ensure safety at worksites in the field.

●

Number of safety patrols implemented in FY2018

By Safety and Health Committee (members, advisors) : 47
By Safety Control Department: 267
By construction division: 334

Safety patrols

Human Rights and Labor Practices●

in work stoppages (of four or more days); for branches, pursuinga thorough program of safety and health education, ensuring
adherence to safety inspection guidelines, and implementing thebranch safety patrol plan; and for the Safety and Health
Cooperative Association, strengthening collaboration withpartner companies. We will work to revitalize safety and healthactivities throughout the company by carrying out that role.
Rather than contenting ourselves with the status quo, we will
pursue new safety and health initiatives to foster a deep
awareness of the concept that underlies our safety and healthpolicy ̶ “understanding the need for respecting people andgiving top priority to safety and health” ̶ on the part ofeveryone whoʼs involved in our operations.

■ Safety inspection system■ Work group transfer system

We have put in place programs tooffer employees who have left thecompany after reaching retirement age
reemployment at Takuma and groupcompanies up to age 65.

Since FY2006, we have introduced TK-COHSMS based on an
occupational safety and health management system for theconstruction industry and worked actively and independently to
improve our safety and health activities. We believe that among
these efforts, the manner in which (1) safety inspections, (2)mandatory safety and health education (education for
construction site representatives), and (3) creation of pre-worksafety procedure checklists known as SSAs have been steadily
adopted by all departments and used to consistently improve thelevel of knowledge about Takumaʼs safety and health isparticularly noteworthy.
We have adopted the following safety and health objectives for
FY2019: for construction sites, eliminating accidents that result

Safety talks■ Safety and health education (education for construction site representatives)
We have introduced a number of social welfare programs designed to meet a diverse array of employee needs.
●●

Cafeteria plan:
Employees receive a fixed “benefits budget” from the company to spend by choosing from a menu of options including support
for self-study, child-raising and nursing care, healthy living, and asset-building.
Employee Shareholder Association:
Employees can combine contributions that are automatically deducted from their salaries and bonuses provided by
the company to purchase Takuma shares.

We continuously provide specialized safety and healtheducation at branches and worksites to increase the levels ofsafety awareness and knowledge of our employees andpartner companies.
As indicated at right, more than 17,500 trainees havepassed the completion exam. We are involved in a variety of
initiatives to put in place mechanisms for preventing
accidents, including by assigning workers with extensive
knowledge in areas such as safety-related laws andordinances to individual construction sites.

●

April, 2004 to March, 2019

Cumulative number of trainees: 34,078
Number of trainees passing the completion exam : 17,621

Head Office venue

49

TAKUMA CSR Report 2019

Tokyo Branch venue

TAKUMA CSR Report 201950

Efforts for Occupational Safety and Health

Takuma holds a Safety and Health Meeting to bring workers
with safety- and health-related responsibilities together toimprove and share their safety and health awareness with thegoal of ensuring worker safety and health and promoting thedevelopment of a pleasant work environment.
During FY2018, we recognized subcontractors that helped
achieve our zero-accident record at worksites, held a lecture
entitled “Key Revisions to Safety Belt Standards,” and hosted atalk by a guest lecturer entitled “Health and Safety Activities
Incumbent upon Managers: Considering Risk Assessment andHuman Error.” In addition, safety and health partnercompanies gave presentations on their safety and healthpolicies and goals, and all participants closed the meeting by
chanting the FY2018 slogan and pledging to continue to work
toward thorough safety and health management by utilizing
TK-COHSMS.

Mr. Yuichi Nakayama
General Manager
Tobu Crane Service Center
Hitachi Plant Mechanics Co., Ltd.

Presentation of a zero-accident record award

Pointing and chanting of the slogan by all participants

In 2018, the total number of worked hours fell by about
64% compared to 2017. In addition, the total number ofoccupational accidents and accidents leading to missed
workdays fell about 60% of the 2017 level. However, the total
number of occupational accidents held constant in thetwo-digit range for the five-year period starting in 2014. In
3.93

15

3.00

10

9
2.03

12
5 1.13

0.79

3
0

3

0.02
2014

2015

5
0.06

2017

Takumaʼs safety results■ Topics

1.76

1.76

0.03

2016

3.0 Takumaʼs

accident
frequency
2.0 rateandseverity
1.0 rate

0.0
2018(Year)Year

Accident
frequency rate

Accident
severity rate

2014

0.91

0.07

2015

0.92

0.21

2016

0.64

0.11

2017

0.81

0.18

2018

1.09

0.30

Number of casualties
Total actual working hours

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

1,000

Reference: Nationwide accident frequency and severity rates
for the construction industry (general construction)

Takuma receives Outstanding Construction Contractor Award and Outstanding Engineer Award

In November 2018, Takuma was recognized as an Outstanding Construction Contractor for
the Imabari New Waste Treatment Facility Maintenance and Operation Project/Imabari City
New Waste Treatment Facility Construction Project, which was completed in FY2017. In
addition, Takumaʼs site manager for the work was recognized as an Outstanding Engineer.
The pair of awards, which the City of Imabari offers to recognize outstanding construction
contractors and engineers that serve as a model for others in construction technology, site
superintendence, and other areas of their performance in construction work ordered by the City,
are conceived to help ensure construction projects are carried out in an appropriate manner andto improve associated technologies.

51* Accident frequency rate
Indicates the frequency with which
accidents occur as the number of fatalities
caused by occupational accidents per 1
million actual working hours.

TAKUMA CSR Report 2019

Shinobu Takahashi
Associate Director
Purchasing Department
Takuma Co., Ltd.

Hitachi Plant Mechanics Co., Ltd., supplies products including waste cranes, which are a key
component at our waste incineration plants. Weʼre deeply grateful for the companyʼs excellent
record of cooperation with our health and safety activities at construction sites, including new
installations as well as overhauls and other work.
Work involving cranes at waste incineration facilities is associated with an extremely highlevel of risk due to the fact that the work must be carried out in constricted areas and at aheight. The magnitude of this risk is borne out by the accident record, and we require
subcontractors to take a rigorous approach to safety management at sites. In asking Hitachi
Plant Mechanics to handle replacing the traveling rails for the waste feed cranes and the fall
prevention safety net at the Shinkoto Waste Treatment Plant last year, we imposed numerous
requirements at a worksite where worker tension was aggravated by the effects of an accident
that had occurred the previous year. The company took those requests seriously and complied
appropriately.
The sequence of work required by the project was completed without accident thanks to an
approach that included a variety of measures, for example applying the characteristics of thesite as assessed in advance surveys into safe work procedures. Iʼm confident that Hitachi Plant
Mechanics developed a shared understanding of Takumaʼs approach to health and safety.
Going forward, I hope that Hitachi Plant Mechanics will join Takuma in working to continue
our zero-accident record by cooperating to implement thorough risk management at all sites
where the two companies work together and by further deepening our shared awareness ofhealth and safety.

Human Rights and Labor Practices

Number ofcasualties(persons)

4.0

addition to enhancing our safety and health management
structures in order to halt this trend, we will work to ensure
even more thorough risk management through a unified
effort by all involved so that we can redouble our resolve toeliminate occupational accidents.

Weʼre a general manufacturer of industrial cranes. Our goal is to supply products that meetcustomer needs with an integrated system that encompasses design, manufacture, andafter-sales service, and weʼve been responsible for manufacturing and providing after-sales
service for the ceiling-mounted waste feed cranes in Takumaʼs Energy from Waste plants formany years.
Recently, from August through October 2018 we replaced the traveling rails of the waste
feed cranes and the fall prevention safety net at the Shinkoto Waste Treatment Plant operated
by the Clean Authority of Tokyo.
As their name suggests, ceiling-mounted traveling cranes are installed near the ceiling,making construction potentially hazardous due to the need to work at a height. Consequently,
construction guidelines that value safety are critically important. For this project, we reduced
the risk of falls by holding study group meetings before work started with partner
subcontractors, installing a temporary handrail and multiple safety ropes on the runway,
installing two man lifts on the hopper floor, and ensuring that all workers used two safety
belts.
The work we carried out required great care and compliance with safety standards based on
Takumaʼs safety inspection program, and we were able to complete it without incident or
accident thanks to Takumaʼs guidance, which the company offered in the form of daily
meetings, joint safety patrols, and other means.
We look forward to working to ensure safety in a way that meets Takumaʼs expectations in
the future based on our safety slogan: “Build an uncompromising safety culture that does not
accept unsafe conditions based on thoughtfulness toward coworkersʼ safety.”

Conferment of the awards by Mr. Ryoji Kan,
Mayor, Imabari City

TAKUMA CSR Report 201952

The Environment

Takumaʼs CO2 Emission Reduction Technologies
We convert waste/biomass into energy and reduce CO2 emissions!

Basic Environmental Policy
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.

Environmental Philosophy
Takuma 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.”

In 1 year, Takuma products

cut about 5 million tons!
Equivalent to the CO2 absorbed by about 350 million Japanese cedar trees*: Assuming one Japanese cedar tree absorbs 14 kg of CO2 per year.
(*Equivalent to a cedar forest the size of 7,500 Tokyo Domes, assuming each tree takes up about 1 square meter of space.)■ Reducing CO2 emission with biomass power plants
Operational Guidelines
1. All Takuma Group companies will recognize the importance of maintaining a balance between preservation of theenvironment and business activities.
2. Continuously develop activities to preserve the environment that comply with applicable environmental laws andordinances, and ensure environmental control and assessment systems conform to international environmental
standards.
3. Promote development of improved technologies and products for society that preserve the environment.
4. Address resource conservation, energy efficiency, recycling, and minimization of waste generated by all businessIn 1 year,

down about
4 million tons!

The sugar industry is an example of an industry that generates power using
biomass. Factories that make sugar produce large quantities of residue fromsugarcane, the raw material used to make sugar. Sugarcane is crushed into a pulp,
and sugar is extracted in a mill. The remaining fiber is called bagasse and can beused as plant fuel. The steam and electricity generated by the plant are used assources of heat for the milling process and of power for plant operations, whilesurplus power is sold back to a power company. The amount of power generated
at sugar factories has grown greatly, with examples of single plants that generate
50,000 kW.

CO2 emission reduction achieved by
Takumaʼs biomass power plants(as of end of FY2018)activities.
5. Improve employee awareness and understanding about the importance of preserving the environment throughenvironmental education and internal promotional activities.
6. Provide the community with information on the activities of Takuma to preserve the environment.

Environmental Management

What is biomass?

Biomass 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 chips are incinerated,when trees grow again, they absorb CO2 to offset the emissions
from incineration, so there is no increase in CO2 in the atmosphere.
Biomass power generation helps reduce the amount of electricity
generated from fossil resources, helping lower CO2 emissions.

Wood
chips

The situation concerning the acquisition of ISO 14001

Biomass power plant

Our Harima Factory has acquired ISO 14001
certification and has been implementing environmental
management activities based on an environmental
management system established to comply withinternational standards.
Our group companies Nippon Thermoener Co., Ltd.,
Takuma Technos Co., Ltd., Hokkaido Sanitary
Maintenance Co., Ltd., and Dan-Takuma Technologies
Inc. have also acquired ISO 14001 certification.

■ CO2 emission reduction from waste incineration plants
Garbage, or waste, is an important source of energy. About 500 kW** of power
can be generated from one ton of garbage. In Europe and the Americas, waste
incineration plants are often called Energy from Waste (EfW) plants, andrecovering energy from garbage has become the norm. Waste must be seen as a“resource,” so Takuma is seeking to be the best in the world with ourtechnologies to convert waste into energy and reduce CO2 emissions.

** Presumes waste with a calorific value of 8,800 kJ per kg and a power generation efficiency of 20%

Harima Factory

53

TAKUMA CSR Report 2019

EnergyPalm
Bagasse kernel
shellsThe Environment

●

●

About

1 ton ofgarbage

Waste
combustion

500 kW of
power
generated

In 1 year,

down about
1 million tons!
CO2 emission reduction achieved by Takumaʼsmunicipal solid waste incineration plants(as of end of FY2018)

TAKUMA CSR Report 201954

■ Environmental accounting

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

Environmental 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 monetaryamounts 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●■ Environmental data (non-consolidated)●

Total energy consumption

●

4,500
(Tons-CO2 per year)(GJ per year)

90,00060,00030,0000

The total energy consumption of the fuel and theelectricity consumed at Takuma during FY2018 fell slightly
compared to FY2017 levels. We will continue to promoteenergy savings from here on out.

Waste generation●(Tons per year)

900

600

2014 2015 2016 2017 2018 (FY)●

Period covered: April 1, 2018, to March 31, 2019●

Companies targeted:

12 domestic companies

16,003

20,271―

13,479―41,584

38,5981,478,605

2014 2015 2016 2017 2018 (FY)Social activity costs―

11,808

Total

57,256

1,586,782

Water usage●

Environmental conservation effectAccording to the “Environmental Accounting Guidelines,”
environmental conservation effects measure on a material basis theeffects of preventing, controlling, or avoiding environmental impacts,
eliminating their effects, recovering from associated damage, andinitiatives to aid in the same.
FY2017FY2018(1) Environmental conservation effect concerning resources input
for business activities
Total energy input (GJ)
97,416
95,047
Water resources input (m3)45,46048,03440,00020,0002014 2015 2016 2017 2018 (FY)

●

FY

2014

2015

2016

2017

2018

Emissions (tons per year)

0.3

0.4

0.4

0.5

Toluene (CAS No. 108-88-3)
FY

2014

2015

2016

2017

2018

0.3

Emissions (tons per year) 0.08

0.26

0.09

0.07

0.06

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

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

2014

2015

2016

2017

2018

Emissions (tons per year)

3.4

2.2

2.9

1.2

1.1

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.

Even as total environmental impacts must be reduced, it is necessary
from a business management standpoint to pursue environmental
initiatives that are characterized by a high degree of economic efficiency.
We report environmental efficiency using an index calculated inaccordance 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 ratioof consolidated net sales to greenhouse gas emissions. In FY2018, thisvalue improved slightly compared to FY2017.

The Environment

Water consumption during FY2018 rose slightly comparedto FY2017. Going forward, we will work to lower our wateruse.

(2) Environmental conservation effect concerning environmental loads
and wastes created by business activities
Greenhouse gas emission volume (tons-CO2)
4,131
3,977
Waste generation (tons)
1,028
934
Final disposal volume (tons)
131
150
Total drainage volume (m3)45,46048,034BOD emissions (kg)
2,448
2,565
COD emissions (kg)
2,613
2,747
T-N emissions (kg)645
693
T-P emissions (kg)
111
121

●

■ Environmental efficiency

Dichloromethane (CAS No. 75-09-2)

TAKUMA CSR Report 2019

Global environmental conservation costs

Research and development costs

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.

55

21,035

Management activity costs■ PRTR target substance emissions

●

2,655

Resource recycling costs0

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

●

Pollution prevention costs

Item

300

0

1,500

60,000Waste generation
Recycling
Final disposal treatment

Costs
Investment(thousand JPY) (thousand JPY)

Scope of data collected

Business area costs

The greenhouse gas emissions created by our company
are limited to carbon dioxide (CO2). The amount of CO2
emissions in FY2018 fell slightly compared to FY2017 levels.
We will continue striving to reduce CO2 emissions.

(m3 per year)

●

Item

3,000

0

2014 2015 2016 2017 2018 (FY)

Environmental conservation costAccording 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 fromassociated damage, and initiatives to aid in the same.

Greenhouse gas emissions

facilitate sustainable development. In FY2006, we introduced anddisclosed 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 needfor environmental conservation, and we have been implementing
approaches toward such issues within the Takuma Group.

●

The Takuma Groupʼs definition ofenvironmental efficiency
Consolidated net sales (million JPY)
Greenhouse gas emissions (tons-CO2)●

Environmental efficiency

40
30

24.42

29.12

26.82 28.61

30.66

20
10
0

2014 2015 2016 2017 2018 (FY)TAKUMA CSR Report 201956

Fair Business Practices
Takuma offers compliance and CSR promotion education through the Compliance & CSR Promotion Organization (see page42), which was established in order to spread awareness of compliance and CSR issues among employees. During FY2018, we
implemented education focusing on compliance and CSR promotion in four separate stages (see below) in keeping with ourpolicy of pursuing a sustained and thorough program of spreading and improving compliance and CSR awareness and risk
management. This effort, through which we sought to live up to societyʼs requirements and expectations, while taking into
account internal circumstances and the characteristics of group companies, was based on the Compliance & CSR Promotion
Divisionʼs medium-term policy of continuing to practice compliance-focused management in accordance with the 12th
Medium-Term Management Plan.
●
●

●
●

1st term:

2nd term: Corporate disaster prevention and mitigation, SDGs (Sustainable
Development Goals), Takumaʼs CSR comprehension test
3rd term: Corporate scandals, security export control
4th term: Compliance and internal reporting system (lecture),
forward-looking CSR activities: CSR issues and an action program(Speaker: Mr. Kiyoshi Endo, Attorney at Law, Endo Kiyoshi Law Office)Sessions: 4 per year (May, August, November, and January)
Number of participating departments: 45
Total number of attendees: 4,026■ CSR lectures for management-level employees
In September 2018, attorney Yusaku Kurahashi of the law firm Nakamura, Tsunoda &Matsumoto gave a talk for managers entitled “Risk Management in Ordinary Timesand in Times of Emergency.”
In the talk, Mr. Kurahashi addressed the job responsibilities and operational
response of executives from the standpoint of risk management in ordinary times andin emergencies. The lecture offered a valuable opportunity to think anew about
conventional risks as well as special risks that are more likely to go unnoticed.

TAKUMA CSR Report 2019●

Holding training sessions about the Antimonopoly Act

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

Introducing a Legislation Information Service

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

Takuma has been operating an internal reporting systemsince FY2006, with the aim of promoting compliancemanagement by uncovering illegal or unfair acts as early as
possible and undertaking corrective measures.
Reporting contacts are set up at our Compliance & CSR
Promotion Division and at an outside law office, as well as a
dedicated outside report contact for anonymous e-mailreporting. Our “Internal 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. Although awareness of thissystem exceeded 90% according to the results of the FY2018
CSR awareness survey, some respondents indicated that they
were unaware of the system or uninterested in utilizing it,suggesting that issues remain for the reporting system.

Persons seeking consultation or making reports
Response
Outside report contact(Including via anonymous
e-mail if so desired)Consultation
or report

Law officeCompliance & CSR Promotion Division(Investigation and response)Internal reporting process

Fair Business Practices

Initiatives to ensure compliance with
the Antimonopoly Act

Towards ensuring permanent compliance with the
Antimonopoly Act, Takuma enacted “Regulations
Concerning Management of the Pledge of Antimonopoly Act
Compliance,” which provides for the submission of a written
oath in regard to observing the Antimonopoly Act.
“Rules on Controlling Contact with Competitorsʼ Sales
Departments, Etc.,” defines the procedure for an employee tocontact 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.

57

example by offering additional education in areas thatreceived lower scores than in the previous survey. In
FY2018, responses indicated that 921 (of 942) employees
are conducting themselves in accordance with standards
such as the companyʼs Management Principles and the
Takuma Group Code of Conduct, indicating that awarenessof the importance of compliance and CSR have spreadwidely among employees.
We will continue to offer this survey and use its results toimprove compliance and CSR promotion education on an
ongoing basis.

Effect of Japanese-style plea bargaining on corporate operations

4th term lecture●

As a means of understanding the level of awareness ofcompliance and CSR and the level of permeation of
education that promotes these priorities, and employingthat data as reference for the integrated activities carriedout during each fiscal year and for the following fiscal yearʼsaction plan, we have conducted the “CSR Awareness
Survey” every year since FY2008 with the end goal ofutilizing that information for future compliance and CSR
promotion activities. The survey has included groupcompanies since FY2013.
We actively use survey results in our activities, for

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

TAKUMA CSR Report 201958

Consumer Issues

Activities Involving Product Quality
The amount of attention paid by consumers (stakeholders)to quality in a wide range of fields, including manufacturing
and services, has been growing in recent years. This section
introduces Takuma initiatives that are designed to provide
safe, confidence-inspiring products and plants.
Takumaʼs Head Office, branch companies, and otherbusiness offices have earned certification under the ISO 9001
international standard on quality management systems, andthe Harima Factory has earned certification under the ISO
9001 and ISO 14001 international standards on quality
management systems and environmental management
systems, respectively. In December 2017, we completed a

We carry out the following quality improvement initiatives:(1) Conducting a customer satisfaction survey every year since
FY2007(2) Applying customer feedback with regard to delivered
products and Takuma employees to quality and service

transition to ISO 9001:2015, the latest edition of thatstandard. In addition to working to improve the quality of our
products in accordance with our Quality Policy and quality
management system, we are pursuing activities thatemphasize customer satisfaction.
In order to produce products and plants that customers
truly appreciate, it is necessary not only to boost the quality ofthe product itself, but also to improve the operations andquality as well as each individualʼs ability to create a good
plant in each process from planning up to delivery (sales,planning, design, procurement, manufacture, construction,and management).

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

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

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

With scores averaging higher than 80 points every year since its second year, the questionnaire demonstrates the effectivenessof our initiatives.
In this way, we work to improve product and plant quality so that all customers are satisfied.

As an organizational initiative thatʼs designed to boost
product quality, we have each department establish quality
targets at the beginning of the year and then provide regular
reports (twice a year) on progress towards achieving those goals
at QM Committee meetings (quality management reviews).
As part of the transition to ISO 9001:2015, weʼre working tofurther improve quality by identifying an effort to clarify andaddress risks and opportunities as a key quality goal andevaluating the effectiveness of that effort.
●

Internal quality audits

In addition to increasing the precision of operations bystandardizing operating procedures in each departmentʼs
processes, we are improving operations as necessary bycarrying out an internal quality audit of each department toverify the status of quality management system operation.
Internal quality audits are carried out regularly by
employees who have been certified as internal auditors after
completing internal quality auditor training seminars offered
by instructors from an outside organization. At the training
seminars, employees master content ranging from basic

59

TAKUMA CSR Report 2019knowledge about ISO 9001 to specific methods for
conducting internal audits.

Number of surveys

Average score(Surveys)●

Construction license (Minister of Land, Infrastructure, Transport andTourism license, Special 27-6129, Special 29-6129)

40

100

Construction consultant registration (Minister of Land, Infrastructure,
Transport and Tourism registration, Construction 26-10202)

37●

Improving the employeesʼ individual operational skills

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

Quality control and process reviews

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

90
83.5
80.2

80

85.5

85.9

85.8

87.7

88.2

86.8

85.6 86.3

27

27

82.3
27

26

●

28

23

18

18

20
19

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 (FY)Questionnaire average score (out of 100 possible points)

Harima Factory
ISO 9001 quality management system certification
ISO 14001 environmental management systems certification
Manufacture of thermal equipment for power generation (Ministryof Economy, Trade and Industry)
Permission to manufacture boilers and pressure vessels, permission
to manufacture cranes (Ministry of Health, Labour and Welfare)

16

60

First-class architect office registration (01A02903)
ISO 9001 quality management system certification

30

25

73.4

70

Head Office, branch offices and other business offices
Consumer Issues

Organizational initiatives for improving quality

Decide where to conduct the questionnaire survey

The figure to the right illustrates how the survey is administered.
First, we administer questionnaires targeting customers who
Conduct the questionnaire survey
had construction work done by asking them to assess the overall
experience after the work is completed, including the nature of thework performed, suitability of delivered equipment, and the level
Investigate the questionnaire resultsof service provided by Takuma staff.
Analyze problem factors and investigate
Next, the QM Committee calculates a score for each item based
recurrence prevention countermeasureson the survey results as well as a report and explanation from the(if results are lower than our standard)
responsible department. The committee then analyzes theAnalyze praiseworthy factors
resulting data.
(particularly for praiseworthy aspects)
If we find a problem, for example an item receiving anevaluation score of less than 70 out of 100 or a score of 1
(dissatisfied) or 2 (rather dissatisfied) on a 4-point scale, the QM
Committee analyzes the cause of the problem and studies
Apply recurrence prevention measures andmeasures to prevent recurrence based on interviews with thepraiseworthy factors across the organization
department in question. We also evaluate aspects of our products
and services that receive especially high praise from customers
and work to further enhance customer satisfaction by combining
Follow up with recurrence prevention measures
problem areas and praiseworthy areas and applying them
Follow up on results
horizontally across involved departments at the company.
For customers targeted for problem analysis and considerationof 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.

(Points)●

Customer satisfaction survey process

10

Manufacture of specific high-pressure gas facilities (Ministry of
Economy, Trade and Industry)
Manufacture of refrigerators (Governor of Hyogo Prefecture)

ISO 9001

JQA-1952
ISO 9001 certification
Head Office, Osaka
Office, Tokyo Branch,
Chubu Branch, Kyushu
Branch, Hokkaido
Branch and Harima
Factory

ISO 14001

JQA-EM0313
ISO 14001
certification
Harima Factory

TAKUMA CSR Report 201960

Participation in the Community

Contribution to Society

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

This page introduces some examples of Takumaʼs community service activities.

The Takuma Group orchestrates coordinated clean-up activities in the areas around its
worksites each year as a way for volunteers to beautify the environment and contribute tosociety. During FY2018, a total of 570 employees participated in two such activities. The
activities provided an opportunity for employees to think afresh about waste-related issues
and their connection to the community. Going forward, the Takuma Group will continue thisinitiative.

Imabari High Trust is a special-purpose company that was established to operate andmaintain Imabari City Waste Management Center (known as “Bari Clean”), which wasconstructed to connect residents, their community, and the future through safe operationthat inspires peace of mind. The company has promoted exchanges with residents througha variety of events every month since it began operating in April 2018.
The facility is able to serve as an evacuation center in the event of a natural disaster, andit has enough space and emergency supplies to accommodate 320 people for one week. It
can also generate electricity for use in such scenarios. In September 2018, the facility
joined local residents and the city in conducting an evacuation center drill.

In November 2018, volunteers from Operation & Maintenance Services Department 2
participated in the “Osaka Marathon ʻCleanupʼ Campaign,” a cleanup activity that is held
every year as part of the Osaka Marathon.
The activity brought together organizational, group, and individual volunteers to beautify
public spaces throughout the city.
Work to open the evacuation center

Before the festival venue doors opened

Flea market

In December 2018, the facility held the Imabari Environmental
Festival to prompt exchanges with local residents and environmental
education. Numerous residents attended the event, which wascosponsored by Imabari High Trust, and enjoyed activities including aflea market, environmental learning booths, and tours of the waste
treatment facility.
The company will continue to operate the facility in an appropriatemanner so that it can earn the understanding of residents in ordinary
times as well as in times of emergency as a facility that treats waste in asafe, stable manner in line with the Imabari Model (a model for21st-century waste treatment facilities) while earning a place in thehearts of local residents and safeguarding the community, and as a placethat offers environmental awareness-raising and hands-on learning
opportunities while communicating related information.

A tour of the waste treatment facility

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 worldʼs food problems and to collect donations to address them.

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

calendars at a charity calendar market sponsored by the NPO
Nippon Volunteer Network Active in Disasters are used toprovide aid for victims of natural disasters and other crises.
We also donate calendars to the NPO Community Support
Center Kobeʼs Gift On Heart Calendar project for delivery to
local residentsʼ associations and other groups, elderly
residents, and individuals with disabilities.

Participation in the Community/Contribution to Society

In August 2018, Takuma and group companies Takuma Energy and Fujisawa High
Trust manned a joint booth at the Recycle Plaza Fujisawa Fair, an event that is held
every year in the city of Fujisawa to promote and raise awareness of issues such as 3R
initiatives and use of renewable energy. This year, we promoted local production andconsumption of surplus electricity from Energy from Waste plants. Numerous local
residents, especially families, visited Takumaʼs bicycle-driven hands-on power
generation area, which attracted crowds for the duration of the event.

Takuma supports blood donation activities through the Japanese Red Cross Society.
During FY2018, a total of 122 donors participated in blood drives at the Head Office andHarima Factory. Donors can simultaneously register as bone marrow donors at the Head
Office, and this year eight employees did so. We plan to continue this activity in the future.

Each year, Takuma donates unused calendars to a
non-profit organization. The proceeds from selling the
Bicycle-driven hands-on power generation area

Publications
Takumaʼs Harima Factory has registered as an eco classroom as part of its ongoingsponsorship of environmental learning in the city of Takasago. In October 2018, acoordinator from one of Takumaʼs engineering departments visited Takasago
Municipal Amida Elementary School to teach an environmental learning class entitled“Thinking about Waste.” The instructor used slides and other learning materials to
explain topics such as waste generation, sorting, treatment, and recycling in aneasy-to-understand manner to a group of about 90 third-graders. The children listenedwith interest as the teacher happily answered their questions.

61

TAKUMA CSR Report 2019

We publish the Takuma Technical Review twice a year to introduce technologies that Takuma has developed.
Contents in FY2018 included an explanation of how power can be locally produced and consumed
based on examples from Takuma Energy, operational reports on plant equipment, observations from visits
to overseas facilities, and profiles of delivered projects. Abstracts are available on Takumaʼs website.
Eco classroom[Takuma top page > Technical Information > Technical Review]https://www.takuma.co.jp/english/gijutu/gihou.html

TAKUMA CSR Report 201962

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

(

110th

Millions of
yen

) (

111th

Millions of
yen

) (

112th

Millions of
yen

) (

113th

Millions of
yen

) (

114th

Millions of
yen

) (

Business Performance During the Fiscal Year Under Review

115thMillions of
yen

)(

115th

Thousands of
U.S. dollars)

March 2014

March 2015

March 2016

March 2017

March 2018

March 2019

March 2019

Net sales¥

96,334¥ 103,875¥ 113,088¥ 116,309¥ 118,199¥ 121,951$ 1,098,753

Operating income

¥

8,424

¥

8,223

¥

9,189

¥

10,974¥

10,030¥11,604$

104,551

Ordinary proﬁt

¥

9,449

¥

9,116

¥

9,646

¥

11,606¥

10,670¥12,334$111,128

Proﬁt attributable toowners of parent

¥

8,835

¥

8,030

¥

7,817

¥

8,551

¥

7,847

¥

8,854

$

79,772Comprehensive income

¥

9,935

¥

9,398

¥

7,149

¥

9,937

¥

10,177

¥

7,325

$

66,000End of ﬁscal year

Demand for products such as Energy from Waste

As growth in sales was augmented by improved

plants and biomass power plants remained robust

proﬁtability thanks to progress in efforts to cut costs,

during the ﬁscal year under review as growth inoperating income rose 1,574 million yen to 11,604

orders for construction and operation of such

million yen, ordinary proﬁt rose 1,664 million yen to

facilities led to order volume of 179,829 million yen,

12,334 million yen, and proﬁt attributable to owners

up 2,713 million yen from the previous year. Inof parent rose 1,007 million yen to 8,854 million yen.

addition, smooth progress in the construction ofordered plants led to sales of 121,951 million yen, an
increase of 3,752 million yen. As a result, the backlog
rose 57,879 million yen to 330,939 million yen.

Performance by segment was as follows:(Millions of yen)

Net assets¥

Total assets¥ 108,520¥ 123,127

Net assets per share（JPY or USD）¥

527.50¥631.53¥708.18¥815.77

Net income per share（JPY or USD）¥

106.86

¥

97.12

¥

94.55

¥

103.43

Diluted net income per share（JPY or USD）

43,889¥52,516-

Capital adequacy ratio (%)

¥

¥

¥

83,088$748,603¥ 155,989$ 1,405,431¥

924.25¥ 1,000.34

$

9.01

¥

94.93

¥

107.10

$

0.96

13.6

10.9

Orders received

Sales amountOperating income

Backlog

Domestic Environment andEnergy Business

153,628

93,724

12,405322,292

Overseas Environment andEnergy Business

799

3,057

163

525

Package Boiler Business

17,476

16,955904

3,872

Equipment and Systems Business

8,567

8,836

361

4,502

Sub-total

180,472

122,572

13,835331,192

(642)

(621)

(2,231)(252)

179,829

121,951

11,604

330,939

53.0

53.0

50.4

Segment

-

-

-

48.1

14.1

76,726¥ 151,489

-

44.1

16.8

67,727¥ 140,201

-

42.4

22.7

58,809¥ 132,614-

40.2

Return on equity(%)

¥

11.1

11.1

Adjustment
Price-to-earnings ratio

6.9

9.7

10.7

10.5

12.3

12.3

12.3

Total
Cash ﬂows fromoperating activities

¥

8,270

¥

21,727

¥

6,728

¥

9,590

¥

5,141

¥

Cash ﬂows frominvesting activities¥ (1,430)

¥

(160)

¥

(445)

¥

143

¥

(328)

¥ (1,382)$ (12,453)

Cash ﬂows fromﬁnancing activities¥ (5,867)¥ (3,707)¥ (2,900)¥ (1,787)¥ (1,670)¥ (9,120)$ (82,164)

End-of-year balance of
cash and cash equivalents

¥

¥

¥

¥

¥

¥

$

45,008

3,315

3,266

48,335
3,366

57,132
3,447

60,283
3,609

61,027
3,619$

97,460Financial Data

Number of employees

27,03010,817549,844
3,619

Note:
1. U.S. dollar amounts are shown solely for the convenience of readers and are translated at the rate of ¥110.99 to U.S.$1.00,
the exchange rate prevailing at March 31, 2019.
2. Ordinary proﬁt is a measure of accounting proﬁt that equals operating income plus other income minus other expenses,
except for extraordinary items under Japanese GAAP.

63

TAKUMA CSR Report 2019

TAKUMA CSR Report 201964

Financial Data
Consolidated Balance Sheets
TAKUMA CO., LTD. and Consolidated Subsidiaries
As of March 31, 2019 and 2018
Thousands of
U.S. dollars

Millions of yen
ASSETS

2019

2019

2018

¥

61,769¥60,864$

556,52949,04650,049441,899

764

380

6,884

281

381

2,526

Less allowance for doubtful accounts

(28)

(38)

(252)

50,06350,772451,057

Inventories

4,356

4,307

39,246

Other

1,732

1,372

15,606

Advances received

117,920

117,315

1,062,438

Total current assets
Property, plant and equipment:

3,013

3,011

27,145

Buildings and structures

11,905

12,287

107,267

Machinery, equipment, ｌease assets and construction in progress

8,969

10,65380,805

Total property, plant and equipment

5,811
1,052

37,587

34,913

338,651
3,006

979

11,057

Total

39,14836,126

352,714

Accrued income taxes

3,628

281

32,6909,798

13,592

88,276

149

86

1,344

1,739

373

15,672

Allowance for guarantees on completed work

Other
Total current liabilities

999

-

9,001

6,023

5,709

54,26562,24664,312560,825

3,083

25,951

215,217Long-term liabilities:(17,450)(140,491)

Long-term debt

342

459

8,294

8,501

74,726

Allowance for directorsʼ and executive ofﬁcersʼ retirement beneﬁts

185

183

1,664

9,746

9,406

87,808

382

403

3,448

Total long-term liabilities

10,655

10,451

96,003

Total liabilities

72,901

74,763656,828

13,367

13,367

120,438

Other
15,13816,885

136,387

Contingent liabilities

Unconsolidated subsidiaries
4,163

5,015

37,506

Other

5,460

1,823

49,201Less allowance for doubtful accounts

(109)

(471)

(986)

Total

9,514

6,367

85,721

Deferred tax assets

4,810

2,081

43,335

313

340

2,824

29,77525,673

268,267

Total investments and other assets$

470

23,887

Investments in:

Other

7,675

(15,593)

Investments and other assets:

and afﬁliated companies

¥

117

234

Net deﬁned beneﬁt liability
Investment securities

645

334

Provision for loss on liquidation of subsidiaries and associates

Land

¥

1,227

and afﬁliated companies
Other

Allowance for losses on sales contracts

Less accumulated depreciation

2019

2018

Unconsolidated subsidiaries

Other
Total

2019

Notes and accounts payable:
Trade

Unconsolidated subsidiaries
and afﬁliated companies

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

Notes and accounts receivable:
Trade

LIABILITIES AND NET ASSETS
Current liabilities:

Current assets:
Cash and time deposits

Thousands of
U.S. dollars

Millions of yen

Net assets:
Common stock
Authorized: 321,840,000 shares
Issued: 83,000,000 shares
3,768

3,768

33,951Retained earnings

60,86652,949548,390

(235)

(235)

(2,122)

Total shareholders' equity

77,766

69,849700,657

Unrealized gains on securities

5,390

7,161

48,558

8

(46)

75

(4)

2

(37)

Treasury stock, at cost

Financial Data

Capital surplus

331,644 shares in 2019 and
331,385 shares in 2018
Total assets¥ 155,989¥ 151,489$ 1,405,431

Deferred gains and losses on hedges
Foreign currency translation adjustments

(463)

(559)

(4,170)Total accumulated other comprehensive income

4,931

6,558

44,426

Non-controlling interests in consolidated subsidiaries

391

319

3,520

83,08876,726

748,603¥ 155,989¥ 151,489$ 1,405,431

Remeasurements of deﬁned beneﬁt plans

Total net assets
Total liabilities and net assets

65

TAKUMA CSR Report 2019

TAKUMA CSR Report 201966

Financial Data
Consolidated Statements of Operations

Consolidated Statements of Comprehensive Income

TAKUMA CO., LTD. and Consolidated Subsidiaries

TAKUMA CO., LTD. and Consolidated Subsidiaries

For tｈe years ended Marcｈ 31, 2019 and 2018

For the years ended March 31, 2019 and 2018
Thousands of
U.S. dollars

Millions of yen
2019

2018

2019

¥ 121,951¥ 118,199$ 1,098,753

94,491

93,372

851,340

27,46024,827

247,413

Unrealized gains (losses) on securities

15,856

14,797

142,862

Deferred gains and losses on hedges

11,604

10,030104,551

Foreign currency translation adjustments

Interest and dividend income

419

367

3,776

Interest expense

(59)

(66)

(535)

Foreign currency exchange loss

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

2019

Other income (expenses):

Proﬁt

¥

Comprehensive income

(157)

(509)

-

111

-

Owners of the parent

Gain on liquidation of subsidiaries and associates

-

90

-

Non-controlling interests

Provision for loss on liquidation of subsidiaries and associates

(999)

-

(9,001)

Loss on valuation of investment securities

(155)

(60)

(1,396)

Loss on disposal of property, plant and equipment

(58)

(44)

(527)

Provision for doubtful accounts

(49)

-

(446)

Equity in earnings of afﬁliated companies

473

461

4,265

21

79

189

781

(4,184)

11,14010,811

100,367

Current

4,179

1,352

37,649Deferred(1,991)

1,581(17,936)

2,188

2,933

19,713

8,952

7,878

80,654

98

31

882

Income before income taxes

7,878$ 80,654(1,772)

2,275(15,966)

58

(3)

519

(9)

(4)

(77)

8,952

¥

96

31

870

2,299

(14,654)¥

7,325¥ 10,177$ 66,000¥

7,227¥ 10,125$ 65,114

98

52

886

Comprehensive income attributed to:

(57)

(464)

2019

(1,627)

Total other comprehensive income

Gain on sales of investment securities

Other income (expenses), net

2018

Other comprehensive income：Remeasurements of deﬁned beneﬁt plans

Other, net

Thousands of
U.S. dollars

Millions of yen

Income taxes:

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

¥

8,854

Cash dividends applicable to the year

67

TAKUMA CSR Report 2019

¥ 107.10$

79,772

U.S. dollars
¥

94.93

$

Financial Data

Diluted net income

7,847

Yen

Per share:
Net income

¥

0.96

-

-

-

22.00

16.00

0.20

TAKUMA CSR Report 201968

Financial Data
Consolidated Statements of Changes in Net Assets
TAKUMA CO., LTD. and Consolidated Subsidiaries
For the years ended March 31, 2019 and 2018

Commonstock

Capitalsurplus

For the year ended March 31, 2019
Balance at the beginning of current period

Treasurystock,
at costRetainedearnings

Total
shareholders'equityUnrealized
gains onsecurities

Deferred
gains and losses
on hedges

Foreigncurrencytranslation
adjustments

Millions of yen¥ 13,367¥

Remeasurements ofdeﬁnedbeneﬁt plans

Total
Nonaccumulated
controlling
otherinterests incomprehensive consolidated
incomesubsidiaries

Total
net assets

Millions of yen

3,768¥ 52,949(235)¥ 69,849

319¥ 76,726

Cash dividends (¥19.00 per share)--(1,571)-(1,571)

-

-

-

-

-

-

(1,571)

Proﬁt attributable to owners of parent

-

-

8,854

-

8,854

-

-

-

-

-

-

8,854

Change in scope of consolidation

-

-

657

-

657

-

-

-

-

-

-

657

Change in scope of equity method

-

-

(23)

-

(23)

-

-

-

-

-

-

(23)

Purchase of treasury stock

-

-

-

(0)

(0)

-

-

-

-

-

-

(0)

Other changes during the year, net

-

-

-

Balance at the end of current period¥ 13,367¥

3,768¥ 60,866¥ 13,367¥

3,768¥ 46,258

For the year ended March 31, 2018
Balance at the beginning of current period

¥

¥

7,161

¥

(46)

¥

¥

(559)

¥

6,558

72

(1,555)

¥

4,931

¥

391

¥ 83,088

(591)

¥

4,280

¥

288

¥ 67,727-(1,156)
7,847(1,627)

-

-

¥

(235)

¥ 77,766

¥

5,390

¥

8

¥

¥

(234)

¥ 63,159

¥

4,886

¥

(21)

¥

-

(1,156)

-

-

-

-

-

Millions of yen

(4)

¥

¥

(463)

96

(6)

54

(1,771)

2

Millions of yen
6¥

Cash dividends (¥14.00 per share)--(1,156)

Proﬁt attributable to owners of parent

-

-

7,847

-

7,847

-

-

-

-

-

-

Purchase of treasury stock

-

-

-

(1)

(1)

-

-

-

-

-

-

(1)

Other changes during the year, net

-

-

-

-

-

2,275

(25)

(4)

32

2,278

31

2,309

Balance at the end of current period¥ 13,367

3,768¥ 52,949(235)¥ 69,849

For the year ended March 31, 2019
Balance at the beginning of current period

¥

¥

¥

7,161

¥

(46)

$

(419)

Thousands of U.S. dollars

¥

2

¥

(559)

¥

6,558

¥

319

¥ 76,726$

2,874$ 691,286

Thousands of U.S. dollars$ 120,438$ 33,951$ 477,057

Cash dividends ($0.17 per share)--

Proﬁt attributable to owners of parent--

Change in scope of consolidation-

Change in scope of equity method21$ (5,040)$ 59,085

-

-

-

-

-

(14,152)

-

-

-

-

-

79,772

-

-

-

-

-

-

5,919

(206)

-

-

-

-

-

-

(206)

(3)

(3)

-

-

-

-

-

-

(3)

-

-

(15,965)

494

(58)

870

(14,659)646(14,013)(2,122)$ 700,657$ 48,55875$ (37)$ (4,170)$ 44,426

3,520$ 748,603(2,119)$ 629,327$ 64,523(14,152)-(14,152)-

79,772-

79,772

-

-

5,919

-

5,919

-

-

(206)

-

Purchase of treasury stock

-

-

-

Other changes during the year, net

-

-

-

Balance at the end of current period$ 120,438$ 33,951$ 548,390

$

$

$

$

$

Financial Data

69

TAKUMA CSR Report 2019

TAKUMA CSR Report 201970

Financial Data
Consolidated Statements of Cash Flows
TAKUMA CO., LTD. and Consolidated Subsidiaries
For the years ended March 31, 2019 and 2018
Thousands of
U.S. dollars

Millions of yen
2019

2018

2019

2019

¥ 11,140¥ 10,811$ 100,367

2019

2018

Cash ﬂows from ﬁnancing activities:

Cash ﬂows from operating activities:
Income before income taxes

Thousands of
U.S. dollars

Millions of yen

Adjustments to reconcile income before income taxes
to net cash provided by operating activities:
Depreciation

798

Impairment loss
Loss (gain) on sales of investment securities
Loss (gain) on liquidation of subsidiaries and associates

Net increase (decrease) in short-term bank loans(7,030)-(63,339)

Payment of long-term debt

(470)

(468)

(4,233)Purchase of treasury stock

(0)

(1)

(3)

Payment of cash dividends(1,571)(1,157)(14,152)
(250)

790

7,187

40

-

364

Dividends paid to non-controlling interests

(28)

(21)

7

(111)

67

Other

(21)

(23)

(187)

-

(90)

-

(9,120)(1,670)(82,164)

Loss (gain) on valuation of investment securities

155

60

1,396

Increase (decrease) in allowance for doubtful accounts

(5)

20

(45)

(11)

8

(103)

4

307

33

Net increase in cash and cash equivalents

304

3,151

2,740

Cash and cash equivalents at beginning of year

60,28357,132

543,141

440

-

3,963

61,027¥ 60,283$ 549,844

Increase (decrease) in allowance for bonuses
Increase (decrease) in allowance for losses on sales contracts

1,367(3,205)

12,315

Increase (decrease) in provision for loss on liquidation of subsidiaries and associates

999

-

9,001

Increase (decrease) in net deﬁned beneﬁt liability

470

441

4,235

(419)

(367)

(3,776)

59

66

535

Interest and dividend income
Interest expense
Equity in losses (earnings) of afﬁliated companies
Net decrease (increase) in notes and accounts receivable and advances received
Decrease (increase) in inventories
Decrease (increase) in other current assets
Net increase (decrease) in notes and accounts payable and advance money
Increase (decrease) in other current liabilities
Other
SubtotalInterest and dividend received

(473)

(461)

(4,265)(2,229)200(20,083)

3

(387)

25

(27)

(305)

(243)

1,865

1,959

16,801

431

(426)

3,888

(3,192)(798)(28,761)

10,993

8,504

99,040

647

456

5,832

Interest paid

(60)

(66)

(541)

Income taxes received (paid)(763)(3,753)(6,871)

10,8175,141

97,460Net cash provided by operating activities

Net cash used in ﬁnancing activities
Effect of exchange rate changes on cash and cash equivalents

Increase (decrease) in cash and cash equivalents resulting from change in scope of consolidation
Cash and cash equivalents at end of year¥

Cash ﬂows from investing activities:
(14)

4

(126)

Purchase of property, plant and equipment

(482)

(343)

(4,347)Purchase of intangible ﬁxed assets

(51)

(125)

(462)

Purchase of investment securities

(802)

(561)

(7,221)

105

230

944

-

(151)

-

112

550

1,011

Sale of investment securities
Disbursement for loans receivableCollection of loans receivable
Other
Net cash used in investing activities

71

TAKUMA CSR Report 2019

(250)

68

(2,252)(1,382)(328)(12,453)

Financial Data

Net decrease (increase) in time deposits

TAKUMA CSR Report 201972

Outside Expert Opinion
Outside Expert Opinion

Takuma CSR Report 2018
Questionnaire Survey Results

Response to the Outside Expert Opinion

Survey period: July 2018 to June 2019
Number of respondents: 976

Q1 Did you understand the activities of our company?
I couldnʼt understand very well. 0.3% / I couldnʼt understand. 0%

Koji Tanaka

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

１．Characteristics of the Takuma CSR Reportand differences with last yearʼs edition73

TAKUMA CSR Report 2019

2. Areas where Takuma can do more
The Takuma Group is already pursuing CSR activities on a
sophisticated level, but I believe that it could take its
initiatives to a new level in two ways.
The first lies in initiatives to improve the companyʼsresilience. Takumaʼs risk management structures are robust.
It seems to me that by conducting regular drills to simulate
a complex, wide-area disaster such as a large earthquake orstorm and flood damage with an associated large-scale
power outage, the company could boost the validity of its
business continuity plan (BCP).
The second lies in carrying out specific measures to share
Management Principles and values. Many companies create
opportunities for dialog between management andemployees with the goal of sharing such principles andvalues while creating a corporate culture that fosters goodcommunication. I think it would be productive for Takuma
to consider how it can create opportunities for dialog
between management and employees, for example throughtraveling CSR “caravans,” under its new leadership.
In his “Message from Top Management,” President Nanjo
described the importance of ESG initiatives from thestandpoint of increasing corporate value over the long term.
ESG investment in Japan has been rapidly growing since2014, and such investment can help increase corporate
value over the long term by driving up evaluations of acompanyʼs CSR. I expect to see Takumaʼs corporate value
grow even further and for the company to enjoy continued
growth as it works to improve its resilience and ensure thatits Management Principles and values are shared.

I understood.

43%

57%

Q2 What is your level of satisfaction regarding this Report?
I would like to thank Professor Takano of Kansai
University for offering his valuable insights on the CSR
Report 2019.
In compiling this report, we have worked to offer
stakeholders an easy-to-understand introduction to avariety of activities carried out by the Takuma Group withthe goal of resolving social issues and increasing corporate
value by achieving sustainable growth as well as to theGroupʼs 12th Medium-Term Management Plan, and wehave focused on inviting involved parties to express theirthoughts on related subjects in their own words.
In “1. Characteristics of the Takuma CSR Report anddifferences with last yearʼs edition,” Professor Takano
noted the importance of the penetration of Management
Principles, along with his expectations concerning genderequality and SDGs initiatives. Iʼm grateful that he offered
his views on the direction of future initiatives. We will
move forward with those initiatives in order to meet the
expectations and requirements of our stakeholders and toachieve sustainable growth of the group going forward.
In “2. Areas where Takuma can do more,” Professor
Takano described measures with the potential to increase
corporate value and facilitate continued growth. We will
work to strengthen our ability to deal with change byimproving resilience and ensuring that Management
Principles and values are shared.
We value Professor Takanoʼs observations and takethem seriously, and I would request stakeholdersʼcontinued support and encouragement as we work topractice CSR management and enhance our CSR Report.

(1) Volume of information

Satisfied72%

Mostlysatisfied30%(3) Quality of information(4) Readability

Somewhat unsatisfactory 0.8% / Unsatisfactory 0%
Average
13%
Mostlysatisfied38%

Satisfied48%

Somewhat difficult
to read 2%

Difficult to read 0.1%

Average
Satisfied
21%
41%
Mostlysatisfied
36%

Satisfied48%

Q3 Which items were you interested in? (Select up to 3.)
Feature: "The King of Boilers"
Tsunekichi Takuma and His Company
Message from Top Management
Takuma Group 12th Medium-Term
Management Plan ̶ An Overview
Introduction to Takumaʼs Businesses
12th Medium-Term Management Plan
and CSR Topics
CSR Activities for the Future
The Environment
Human Rights and Labor Practices
Corporate Information
History
Group Company CSR Topics
Outside Expert Opinion
The Takuma Group Network
Financial Data
Contribution to Society
Participation in the Community
Fair Business Practices
Consumer Issues
Corporate Governance

28%

10%
6%
6%
5%
5%
5%
4%
3%
3%
3%
3%
2%
2%
1%
10%

20%

30%

42%
37%
36%

40%

50%

56%

60%

Data Collection Period
From April 1, 2018, to March 31, 2019, in principle.
In addition, some activities in FY2019 are included.

●●

Publisher and Contact for Inquiries
CSR Department, Compliance & CSR
Promotion Division
TEL: +81-6-6483-2673
FAX: +81-6-6483-2620●●

Poor 0.9% / Very bad 0%
Average21%

Somewhatexcessive
25%

0%

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

(2) Design

Somewhat insufficient 1% / Entirely insufficient 0%
Too much 2%

Outside Expert Opinion

There is no question that the Takuma Group is one ofJapanʼs leading plant engineering companies. In last yearʼs
Outside Expert Opinion, I noted that the group is pursuing
excellent initiatives in the areas of corporate governance,risk management, and compliance.
A review of this yearʼs edition of the CSR Report reveals
three key differences from last yearʼs edition.
The first difference centers on penetration of theManagement Principles. Newly appointed President and CEO
Nanjo mentions them in his “Message from Top
Management” while describing his approach to
management, which respects those principles even as hereturns to the idea of “Service to the nation through boiler
manufacturing,” the motto espoused by founder Tsunekichi
Takuma at the time of the companyʼs founding. Some
research findings suggest that a shared understanding ofmanagement principles and values on the part of managers
and employees is a characteristic of companies that endure
over long periods of time. I believe that President Nanjoʼsapproach to management will be important for Takuma as acompany whose plant engineering business has
underpinned the very foundations of Japanese industry andwhose continued existence is considered essential by society.
The second difference lies in gender equality. While thenature of the plant engineering business means that it
would difficult to characterize Takuma has having a large
number of female employees, the CSR Report includes
information about gender equality initiatives, indicating
how the company is working toward the goal of increasing
the number of female employees in key management andmain career track positions. Takuma welcomed a female
outside director this fiscal year, and I think we can expectthat change to lead to further pursuit of those initiatives.
The third difference involves initiatives addressing the
Sustainable Development Goals (SDGs). With its corebusinesses of waste treatment plants, water treatment plants,
and energy plants, Takuma has a high level of affinity with

the SDGs. In a topic entitled “SDGs Initiatives,” this yearʼs CSR
Report describes how the company launched a series ofvoluntary workshops that cut across departmental lines, and I
look forward to seeing how that effort develops in the future.
In this way, I am pleased to see that the Takuma CSR
Report 2019 demonstrates the continued evolution of thecompanyʼs programs.

I basicallyunderstood.

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

CoverageThis report applies to Takuma Co., Ltd. and its affiliates in principle.
Time of Issue
Current issue: July 2019
Next issue:
Scheduled for July 2020
Last issue:
July 2018●

TAKUMA CSR Report 201974

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

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