CSR Report2020

Contents

Bringing new value to society
with +TAKUMA(Cover: Miyazu-Yoza Clean Center)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

Introduction to Takumaʼs Businesses
1.Environmental Plant Business
2.Energy Plant Business3.Overseas Business
Main Recent Projects

31

CSR Activities for the Future

Founder Tsunekichi Takuma invented the ﬁrst boiler
to be produced entirely in Japan by bringing expertiseand technology to a product that had to beimported until that time.

E NVIRONMENT ーEnvironmental Initiativesー33

By passing down this philosophy over time andaugmenting it with Takumaʼs technology, we continue
to create products with new value today.

SOCIAL ーSocial Initiativesー
37

Human Rights and Labor Practices
Respect for Human Rights and the Abolition ofDiscrimination / Working with Our Employees
Efforts for Occupational Safety and Health43

Consumer Issues
Initiatives for Product Quality

45

Participation in the Community

46

Contribution to Society

Going forward, we will continue to provide new value tocustomers through plants that take advantage ofthe proprietary technologies we have developed since
our founding in areas such as combustion,
waste treatment, and water treatment.

The Environment
Basic Environmental Policy /Environmental Management
Takumaʼs CO2 Emission Reduction Technologies
Environmental ReportingG OVERNANCE ーGovernance Initiativesー

1

TAKUMA CSR Report 2020

47

Corporate GovernanceCorporate GovernanceInternal Control /Compliance & CSR Promotion Structure
Risk Management Structure
Business Continuity Plan (BCP) / IR Activities
Executive Proﬁles: Directors
Messages from New Outside Directors
Executives' Proﬁles: Executive Ofﬁcers

54

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

57

Financial Data

67

Outside Expert Opinion

TAKUMA CSR Report 20202

Message from Top Management

We continue to help solve social
problems and contribute to the sustained
Message from Top Management

development of the world by creating
valuable products and services.

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

Marshaling the Takuma Groupʼs strengths
to maximize proﬁts and enhance its corporate value
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 an ordinary proﬁt of JPY 10 billion in
FY2020, has embraced a vision of building structures
capable of consistently earning an ordinary proﬁt of at least
JPY 10 billion even as the business environment undergoes
a process of signiﬁcant change, and we are pursuing avariety of business activities to achieve that vision. We
believe that we will be able to do so by marshaling thestrengths not only of Takuma on a standalone basis, but of
the entire Group, and our management is guided by thebasic policy of maximizing proﬁts and enhancing corporate
value on a consolidated basis. To that end, we are diligently
implementing the 12th Medium-Term Management Plan
(FY2018 to FY2020), which takes into account changes thatare anticipated to occur in the business environment in the
future and which adopts as its core theme the need toenhance our corporate capabilities to facilitate the3

TAKUMA CSR Report 2020

achievement of our vision and consistent growth
afterwards.

Adapting to changes in the business environment andsecuring a consistent position in the markets we serve
The Takuma Groupʼs core businesses are the constructionof waste treatment plants, energy plants, water treatment
plants, and other similar facilities (through its EPC
business*) and the provision of after-sales services forthem, including maintenance, operational management,
and operation.
In the Groupʼs principal business domain, expectations
with regard to renewable energy and its potential to help
realize a low-carbon and post-carbon society are rising as
the effects of climate change increasingly manifest
themselves. Additionally, work is being planned to updatesuperannuated public infrastructure and to extend its
service life. At the same time, the business environment is
expected to undergo major changes over the medium andlong term, including shifts in demand in response to
evolving national policies and the structure of society, forexample due to Japanʼs low birthrate and the shrinking andaging of its population; increased reliance oncomprehensive contracts as part of a trend to outsource
government services; and increasing sophistication anddiversity in customer needs.
In such a business environment, the plants provided by
the Group through its EPC business have garneredcustomer praise and earned the Group a consistent positionin the markets it serves. Continuing this trend, customers
will begin operating sewage sludge-fueled power plants
capable of creating energy while reducing greenhouse gas
emissions this year.
As facilities that play an essential role in maintaining
peopleʼs lives and our customersʼ business activities, theplants we build are called upon to operate for 20 or 30 years
after delivery. In our after-sales service business, weformulate long-term repair plans based on the extensive
expertise the Group has accumulated over time so that
customers can use those plants longer and more effectively,
and we help them realize stable operation over the longterm by carrying out optimally planned and timed
maintenance based on detailed site inspections. We
recently launched our ﬁrst 20-year long-term operations
business at an energy plant, augmenting similar services
that we provide for seven waste treatment plants. Our next
priority is to build implementation and management
structures for a long-term operations business for water

treatment plants and to carve out a path for expanding
those businesses.

Pursuing sustained growth for society andour company based on our founding philosophyof “Serve society through boiler manufacturing”
The 12th Medium-Term Management Plan represents theﬁnal stage of our current medium- and long-term vision(FY2012 to FY2020), which means that FY2020 is a year
during which we will formulate the next long-term vision.
The previous medium- and long-term vision sought toimprove proﬁtability through the selection andconcentration of resources, while the current medium- andlong-term vision seeks to reinforce our business foundation
for stability and proﬁtability and to achieve a steady
expansion in terms of both quantity and quality in order tolead to a strengthening of corporate capability to facilitatesteady growth based on our development of structures
capable of consistently securing an ordinary proﬁt of atleast JPY 10 billion. In formulating the next long-term
vision, we will be considering how the Takuma Group canbest forge ahead into the future.

TAKUMA CSR Report 20204

Message from Top Management

Company Motto

Value Technology, Value People, Value the EarthManagement Principles
At the same time, there is broad concern that the
COVID-19 pandemic will impact social and economic
activity in an increasingly signiﬁcant manner for an
extended period of time, and there is a growing sense of
uncertainty with regard to the future. As we face
unprecedented difﬁculty in forecasting what is to come, itwill be critical to strengthen our ability to adapt to change
and recover from crisis.
Takumaʼs Management 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.” Thisphilosophy can also be found in our founding spirit of“Serve society through boiler manufacturing*,” and itmeans contributing to the world through the goods andservices that we create. It also informs Corporate Social
Responsibility (CSR), which we have currently embraced asa key issue in the companyʼs management. We will continue
to work toward the realization of sustained growth ofsociety and our company in keeping with these principles.
In addition to creating new value in the ﬁelds of renewableenergy and environmental protection, we will strive toaddress the new challenges arising from the COVID-19
pandemic by working to increase the effectiveness of ourcompliance, risk management structures, and BusinessContinuity Plan (BCP).

Takuma will strive for social contribution, corporate value enhancement, long-term corporate development and the satisfactionof all stakeholders by providing goods and services that are needed and recognized as valuable in society.
The founding spirit of Takuma was “Serve society through boiler manufacturing,” which in present-day language means“contribution to society by supplying goods and services that we provide.” This spirit can also be applied to the concept ofCorporate Social Responsibility (CSR) that in recent years has become a vital issue for corporate management. The
management principles of the Takuma Group companies are all based on the said founding spirit.

Takuma Group Ethics Charter

1.
2.
3.
4.
5.
6.
7.

Takuma has been a signatory to the United Nations
Global Compact* since 2006, and we support its 10
fundamental principles in the four areas of human rights,
labour, environment, and anti-corruption. We will work todevelop 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 provisionsof 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 power generation using
waste and biomass.

Finally, in compiling this CSR Report we have sought not
only to provide a resource by means of which a broad rangeof stakeholders can learn more about the Takuma Groupʼsactivities, but also to help each and every Group employee
think carefully about CSR and bring that perspective to bearin his or her work. We at the Takuma Group encourage
readers to offer their candid views and advice, which we will
carefully review in order that we might better resolve social
issues and contribute to the sustainable development ofsociety.

We shall strive for a proactive social contribution while establishing a harmonious coexistence with the global
environment as good corporate citizens.
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.
We shall never have any relationship with antisocial forces or such organizations, which may pose a threat to the social
order and security of civil society.
We shall respect fundamental human rights and never practice discrimination.
We shall strive to provide high quality products and services, based on our advanced technologies, to attain highacclaim and conﬁdence from our customers.
We shall strive to disclose corporate information to shareholders and investors through Investor Relations (IR) andother activities on a timely and equitable basis.
We shall strive to protect corporate assets as well as information, while never using either for improprieties or any
unjustiﬁable purpose other than normal business operations.

Takuma Group Code of Conduct
Harmony with society

Practice of customer satisfaction

1. Coexistence with the global environment

12. Safety of products and services as well as ensuring reliability

2. Coexistence with international society

13. Policies concerning advertising

3. Practice of social contribution activities

Practice of compliance with laws and ordinances aswell as sound economic activities
4. Free competition and fair trade

July 2020

5. Relationship with politics and public administration

Hiroaki Nanjo

6. Policies concerning business entertainment and gift-giving

President and CEO
Takuma Co., Ltd.

Message from Top Management

Takuma and the Takuma Group companies believe that it is essential for the sound development of the group that all of thedirectors 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 haveestablished and will promote this ethics charter as our code of conduct, aiming to realize our management principles.

7. Prohibition of involvement in anti-social activities
8. Appropriate export and import transactions

Respect for basic human rights

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

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

9. Prohibition of discriminatory actions

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

10. Respect for individuality, personality, and privacy of employees
11. Safe work environment*EPC business: A business in which Takuma offers a turnkey
service extending from plant design to procurement andconstruction. (Plant Engineering, Procurement, and Construction)* Serve society through boiler manufacturing:
It was the Company Motto of Takuma, then Takuma Boiler
Manufacturing Co., Ltd., founded by Mr. Tsunekichi Takuma,
one of the ten great inventors of Japan during the Meiji andTaisho periods (1868-1926).

5

TAKUMA CSR Report 2020

* United Nations Global Compact:
The Takuma Group has joined the United Nations
Global Compact (UNGC), which is a voluntary
effort to create a global framework for
implementing sustainable growth by having
companies and groups exercise responsible andcreative leadership while acting as good membersof society.

TAKUMA CSR Report 20206

Takuma Group 12th Medium-Term Management Plan - An Overview (FY 2018 to FY2020)

1.Positioning of the 12 Medium-Term Management Planth

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.

3.Financial Target
Target: 3-year cumulative consolidated
ordinary proﬁt of JPY 33 billion●

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
the business environment undergoes major changes.)

11th Medium-Term Management Plan
(FY2015 to FY2017)
10th Medium-Term Management Plan
(FY2012 to FY2014)
9 Medium-Term Management Plan
(FY2009 to FY2011)th

Ordinary proﬁt (right scale)Consistently secure annual
ordinary proﬁt of at least
JPY 10 billion.

Steady expansion in terms of both
Cumulative ordinary proﬁt target
quantity and quality

Reinforcement of business foundation
Cumulative ordinary proﬁt results
for stability and proﬁtability

Proﬁtability through selection andCumulative ordinary proﬁt results
concentration of resources

Strengthening of corporate capability
to facilitate steady growth

JPY 25.7 billion

2.Policies of the 12th Medium-Term Management Plan
Many of the Groupʼs products are used for a long period of time,for example for 20 or 30 years from the time of delivery. Offeringhigh-quality after-sales service in an ongoing manner so that
customers can use those products more effectively and over a longer
period of time contributes to both customersʼ and the Groupʼs
proﬁts, helping to create a foundation for stable, long-term earnings.
We will work to further strengthen and expand our revenue
foundation by continuing to provide high-quality solutions
throughout the plant and product life cycle as we meet customersʼ
diversifying needs in an individualized manner.

2 Achieving 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.

3

Increasing productivity, for example by reforming
business processes

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

7

TAKUMA CSR Report 2020

Japanʼs population and the emergence of more advanced anddiverse customer needs as well as social issues.
We will strive to improve productivity, make effective use ofhuman resources, and further increase the level of value we provide
by fundamentally reviewing and rebuilding business processes thathave become increasingly complex in order to accommodate thesechanges while focusing on businesses with higher added value(which will help us create and provide value).

5 Continuing 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 andintegrity remains unshakable. In addition, we will work to further
spread and improve compliance awareness throughout the Groupby effectively implementing and utilizing mechanisms such as ourinternal reporting system and CSR awareness survey.

400

40

300

30

200

20

100

10

0

10th Plan

11th Plan

12th Plan

0

11th Medium-Term
Management Plan results

12th Medium-Term
Management Plan

2012 to 2014

2015

2016

2017

Total

2018

2019

FY2018 to FY2020

Order value

371.0

99.9

191.0

177.1

468.0

179.8

148.8

Sales

296.5

113.0

116.3

118.1

347.5

121.9

134.4

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

Ordinary proﬁt

25.7

9.6

11.6

10.6

31.9

12.3

10.3

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

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

Water Treatment Plant BusinessBusiness Environment

Business Environment

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

●

●

●

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

Emphasis of Future Activities

Emphasis of Future Activities

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

●

●

●

Boiler Plant Business ( Japan)

4 Using human resources effectively
We will work to hire and train the diverse workforce that will beessential as we develop the Groupʼs businesses going forward. At
the same time, we will strive to create an environment that keeps
individual employees engaged in their work and able to make fulluse of their skills and abilities (by cultivating a healthy workplaceculture, reforming individual awareness, and facilitating fulﬁlling
workstyles).

50(Billion JPY)

10th Medium-Term
Management Plan results

JPY 33.0 billion

JPY 31.9 billion

1 Strengthening and expanding our revenue foundation

The 12th Medium-Term Management Plan, which represents theﬁnal stage of our current medium- and long-term vision,
establishes the above targets to guide our achievement of thevisionʼs goal of consistently earning ordinary proﬁt of JPY 10
billion while simultaneously directing the company to utilize all
its resources to build a robust business andOrder value (left scale)management foundation in response toSales (left scale)
future changes in the business environment.

(Billion JPY)

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

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

500

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

Boiler Plant Business (Overseas)

Business Environment

Business Environment

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.

●

●

●

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

Emphasis of Future Activities

Emphasis of Future Activities

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

●

●

●

Waste Treatment Plant Business (Overseas)
Business Environment●

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

Emphasis of Future Activities●●

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

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

Package Boiler BusinessBusiness Environment
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.
●

Emphasis of Future Activities●●

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

*DBO: Design, Build, Operate / O&M: Operation & Maintenance / PPP: Public Private Partnership / PFI: Private Finance Initiative
FIT: Feed-in Tariff / Bagasse: Fiber remaining after sugarcane is crushed

TAKUMA CSR Report 20208

Takuma Group 12th Medium-Term Management Plan - An Overview (FY 2018 to FY2020)

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

Company Outline
Name:

TAKUMA CO., LTD.

Head ofﬁce location:

2-2-33 Kinrakuji-cho, Amagasaki, Hyogo 660-0806, Japan
TEL +81-6-6483-2609 FAX +81-6-6483-2751 (operator)

Increasing customer satisfaction by enhancing our technologicalcapabilities and strengthening our corporate capabilities to

2 Osaka Ofﬁce (Osaka)

Established:

June 10, 1938

3 Tokyo Branch (Minato-ku, Tokyo)

Capital:JPY 13,367,457,968 (as of March 31, 2020)

4 Hokkaido Branch (Sapporo, Hokkaido)

Main business areas:

The design, construction and superintendence of a wide variety of

5 Tohoku Branch (Sendai, Miyagi)

boilers, plant machinery, pollution prevention plants, environmental

6 Chubu Branch (Nagoya, Aichi)

equipment plants, and heating and cooling equipment and feed-water

7 Kyushu Branch (Fukuoka)/ drainage sanitation equipment and facilities

8 Okinawa Branch (Ginowan, Okinawa)

3,816 (as of March 31, 2020)

which makes it a year in which we must lay the groundwork forthe next Medium-Term Management Plan. I look forward toclosing out the ﬁnal ﬁscal year of the current plan by generating
solid results and starting to develop the next plan.
With regard to the policy of “strengthening and expanding ourrevenue foundation” as set forth in the current Medium-Term
Management Plan and our effort to strengthen our after-sales
service business to achieve it, we are working to develop
technologies for increasing the ease with which facilities can be
maintained and managed as well as technologies for plantmonitoring and operation, including advanced technologies suchas ICT and AI. Furthermore, we will add a Supply Chain Lab to theHarima Factory, which we plan to renovate and update in 2022, toserve as an after-sales service facility that can maintain a reliable
inventory of maintenance-critical parts and supply them rapidly.
In this way, Takuma will work actively to construct, maintain,
manage, and operate plants in the environmental and energy
ﬁelds and to help realize the Sustainable Development Goals thatsociety is pursuing by protecting the environment, realizing a
recycling-based society, and reducing CO2 emissions.

(As of June 25, 2020; see Takumaʼs website for details.)
Takuma's business ofﬁces

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.

5 Sunplant Co., Ltd.

23 Kashihara High Trust Co., Ltd.

6 Takuma Engineering Co., Ltd.

9

7 Takuma System Control Co., Ltd.

24 Techno Links Inc.
25 Tochigi High Trust Co., Ltd.

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

26 Ecos Yonezawa Co., Ltd.

4 3 4

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

25

14
8

26

7

18

6

2

5

8

5

15

1

12

20

24

3

21

13

19

9 10

Takuma had decided to update the Harima Factory and build a Supply Chain Lab.

We are planning to further enhance productivity and quality at the Harima Factory while carrying
on the high-quality manufacturing policies developed over the last 77 years and to transform thefacility into a sustainable factory that is kind to both workers and the surrounding environment.
As part of the development and enhancement of our after-sales service structures, the new factory
will include a Supply Chain Lab in an effort to build structures to maintain a reliable inventory ofparts that are essential to the operation of customersʼ facilities and supply them rapidly.
This new facility will help us meet a broad range of customer needs while contributing to society
in the areas of renewable energy and environmental protection.

Group companies overseas

Group companies in Japan

Building a new factory and after-sales service facility

TAKUMA CSR Report 2020

Takuma Group 12th Medium-Term Management Plan - An Overview / Company Outline

10 Taipei Branch (Taipei, Taiwan)

The Takuma Group Network

Executive Manager, Engineering Group

9

9 Harima Factory (Takasago, Hyogo)

and other works
Number of employees (consolidated):

Director & Senior Managing Executive Ofﬁcer●

The design, construction and superintendence of civil, architecture
Number of employees (non-consolidated): 875 (as of March 31, 2020)

Hideki Takeguchi

TOPICS

1 Head Ofﬁce (Amagasaki, Hyogo)

Representative Director: Hiroaki Nanjo, President and CEO

accommodate change in the business environment

Strengthening our corporate capabilities so that we can securestable annual ordinary proﬁt of at least JPY 10 billion regardless of
how the business environment in which we operate changes in the
future remains the central theme of our current Medium-Term
Management Plan. Our Engineering Group is responsible forstrengthening the technological capabilities that are central toachieving that goal, speciﬁcally our capabilities in areas such asplanning, design, purchasing, construction, manufacturing, andresearch and development. The plants we deliver bring together
these technological capabilities, and to provide plants that satisfy
our customers, it is important that we improve upon them, alongwith the human abilities of those who are involved in associatedprocesses.
We operate in the dual business ﬁelds of the environment andenergy, and under the current Medium-Term Management Plan
we have identiﬁed, and are working toward, the targets that need
to be achieved by each department in order to enhance ourtechnological capabilities and foster the development ofprofessionals so that we can expand in those ﬁelds. This ﬁscal year
is the ﬁnal year of the current Medium-Term Management Plan,

Takuma's business ofﬁces

10 1

Group companies overseas
1 Taiden Environtech Co., Ltd.
2 Siam Takuma Co., Ltd.

Harima FactoryPlan overview
Planned site
Total ﬂoor space
Planned start of operations

At the Harima Factory site
New factory: About 19,000 m2(including associated facilities)
Supply Chain Lab: About 3,500 m2
December 2022

1 6 7 11 17

2

22

23

2

16

TAKUMA CSR Report 202010

Business Summary
Environment and Energy Business
Municipal solid waste treatment plants

Industrial waste treatment plants

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

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

Waste incineration plants●

Pyrolysis gasiﬁcation and melting plants●

Resource recycling and recovery plants●

Bulky waste crushing plants●

Bottom ash and ﬂy ash melting plants●

Refuse derived solid fuel conversion plants●

Transition and intermediate processing plants●

Raw fuel (biogas) recovery plants●

Various types of pollution prevention equipment●

Waste incineration plants

Bulky waste crushing plants

Industrial waste treatment plant

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

Energy plants

Water treatment plants

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

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

Biomass boilers●

Sewage and wastewater treatment plants●

Fossil fuel boilers●

Various types of advanced sewage●

Waste heat boilers●

Power plants

treatment plants

Biomass power generation boiler●

Sludge treatment plants●

Sewage sludge-fueled power plants●

Landﬁll leachate treatment plants

Waste heat boiler

Upﬂow moving-bed sand ﬁltration system

Sewage sludge-fueled power plant

Package Boiler Business

Equipment and Systems Business

General-purpose boilers

Air-conditioning equipment and clean systems

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

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

●

Steam Boilers (EQOS, Super EQOS)●

Building equipment●

Vacuum-type Water Heaters (Vacotin Heater)●

Air-conditioning equipment●

Heat Medium Oil Boilers (Thermoheater)●

Cleaning and drying devices●

Flue and Smoke Tube Boilers (RE Boiler)●

Clean rooms●

Package Water-tube Boilers●

Clean devices●

Chemical air ﬁlters

Super EQOS

Vacotin Heater

Thermoheater

RE Boiler

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

11

Industrial waste treatment plants

TAKUMA CSR Report 2020

Business Summary●

Clean oven

Clean booths

Chemical air ﬁlters

TAKUMA CSR Report 202012

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

Dan-Takuma Technologies Inc.

Sunplant Co., Ltd.

September 15, 1941

Established

August 21, 1969

Representative

Syusuke Suzuki, President

Representative

Yoshiki Kita, President

Employees

111 (as of March 31, 2020)

Employees

77 (as of March 31, 2020)

Introduction to Group Company Businesses

Established

Head Ofﬁce (LIVMO Rising. Bldg., 2F, Shin-Yokohama)Business Proﬁle: Sunplant

Business Proﬁle: Dan-Takuma

Tokyo Steam Power Construction Co., Ltd., was established as a boiler installation company when Takuma Steam Power
Construction Co., Ltd., spun off its Tokyo Ofﬁce. We changed our name to Sunplant in July 1976, and we have developed into a
more generally focused facilities company as society has changed over time.
In recent years, we have carried out numerous installations that are backed by our technological capabilities and reliability atsites ranging from commercial facilities such as nursing homes and hotels to research facilities and facilities at U.S. military bases.
Next year, we will mark the 80th anniversary of our founding, and all of our employees are committed to working together tocreate comfortable spaces in buildings through the design and installation of air-conditioning, water and wastewater, andhygienic equipment in keeping with our philosophy of “gratitude and service” so that all people can lead healthy lives.

Business Activities●

Business Activities●

Our products have been used broadly in a variety of industries and social systems over half a century, and we have contributed
to society by creating advanced clean environments that are an essential part of the manufacturing processes forsemiconductors and electronic devices, which have a major impact on our lives.
We have world-class technological capabilities and a market share for chemical air ﬁlters for use in clean rooms andsemiconductor manufacturing equipment and for magnetic shield rooms for use with high-precision electron beam equipment.

Manufacture of products used in semiconductor manufacturing processes

Design and installation of air-conditioning, water and wastewater, and hygienic equipment

Chemical air ﬁlter

Magnetic shield room

Polyimide curing oven

Wet station

Hospital (Adachi-ku, Tokyo)

New business domains

Research institution (Tsukuba, Ibaraki)

Resort hotel (Niseko, Abuta-gun, Hokkaido)

Future business policy
Cleanliness is becoming even more necessary in the environments inside and outside buildings, and companies
performing installation work are under pressure to do so in a way that helps eliminate pollutants and viruses. We
have the technology necessary to do this kind of work as well as a proven track record (including equipment
installation work at university hospitals and clean room construction), and we will continue to work to enhance
our capabilities and provide safer, cleaner spaces in line with our philosophy of “continual reﬁnement.”

13

TAKUMA CSR Report 2020

We are working with national universities to commercialize products by
pursuing applied research and development of precision cleaning using
micro- and nano-bubbles for the electronic industry and for the use ofnano-bubble ozone water in the hygiene and healthcare ﬁelds.
The pictured system is a washing system featuring next-generation
environmental technology that uses ozone and pure water to wash
semiconductors instead of the heated mixed cleaning liquid used byconventional semiconductor washing equipment.
By using cleaning liquid made from ozone (oxygen) and water while
maintaining washing performance that is as good as or better thanconventional systems, the product simpliﬁes waste liquid treatment while
enhancing safety.

TAKUMA CSR Report 202014

History

Businesses

CSR

Legal

Founder Tsunekichi Takuma established our philosophy of“Serve society through boiler manufacturing.”
The goal of becoming a technologically driven company based on that belief has been

2000 ▶

the basis of Takuma's operations throughout our 80-years history.

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. We established local subsidiaries overseas andcontinue to bring our technologies to customers not only in Japan, butalso worldwide, particularly in Asia.

1985 ▶

Takuma established itself as a manufacturer not only of
boilers, but also environmental and sanitary equipment, forexample by developing waste heat recovery boilers that use
waste heat from manufacturing plants, developing modern
technology for incinerating solid waste, and entering the water
treatment market. In 1972, the company changed its name to
Takuma Co., Ltd., which remains its name to this day.

1912 ▶
Founder Tsunekichi Takuma, who invented
the ﬁrst water tube-type boiler entirely
produced in Japan, is one of the 10 great
inventors of the Meiji and Taisho periods. He
formulated the philosophy of “Serve society
through boiler manufacturing” in 1938. Thatphilosophy, which calls on the company tocontribute (render service to) society and theenvironment through the manufacture ofboilers, remains the foundation of TakumaʼsManagement Principles today.

Tsunekichi Takuma

Takuma Boiler Manufacturing Co., Ltd., founded (1)1942

Operations began at Harima Factory (2)1949

Bagasse-ﬁred boiler, the ﬁrst product of its kindin the industry, exported
Company listed on the Osaka and Tokyo stock exchanges

1950

Head Ofﬁce moved to Osaka's Kita-ku District (Sonezaki) (3)Takuma formulated the 1st Medium-Term Management Plan.

1986

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

1992

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

1953

Head Ofﬁce moved to Osaka's Kita-ku District (Dojimahama) (4)1958

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

1993

Basic Environment Act enacted

Operations began at Kyoto Factory* (5)1995

Amagasaki Head Ofﬁce Building completed (9)

1961

1938

1985

*Currently operates as a factory of Nippon Thermoener Co., Ltd.

1963

Japan's ﬁrst 24 hour operating waste incineration
plant delivered (6)Sewerage treatment facility delivered

1997

ISO9001 certiﬁcation obtained

1970

Waste Management and Public Cleansing Act andWater Pollution Control Act enacted

1998

Japanʼs largest waste incineration plant delivered (10)(Tokyo Shin-Koto Incineration Plant Capacity:
1,800 tons per day)

1972

Company renamed Takuma Co., Ltd. (7)1975

Mass production began on “Vacotin Heater”
the worldʼs ﬁrst vacuum-type hot water heater (8)1999

ISO14001 certiﬁcation obtained for Harima Factory

1999

Act on Special Measures against Dioxins enacted

2004

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

2005

Takuma Hanyokikai Co., Ltd., a subsidiary involved in
the manufacture and sale of small boilers, and Ebara BoilerCo., Ltd., merged and renamed Nippon Thermoener Co., Ltd.

2005

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

2006

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

2007

Takumaʼs ﬁrst “CSR Report” issued

2010

Energy from Waste plant delivered in Europe (U.K.)

2012

Feed-in tariff (FIT) program launched to facilitateﬁxed-cost purchases of renewable energy

2013

Operation of the Takuma Solar Power Plant began (11)2019

Decision made to build a new factory and after-sales
service facility (12)History

1951 ▶

Takuma formulated its ﬁrst Medium-Term Management Plan in order toadapt to the challenging economic environment. During this period,
Takuma worked to develop technologies to accommodate a variety ofcustomer needs, including demand for energy savings in industry, thegrowing volume and diversity of municipal solid waste, and the need for
improvements in water quality by means of water treatment equipment.

Sales(Billion JPY)

(11) Takuma Solar Power Plant（1）Amagasaki Factory(2) Harima Factoryunder construction(12) Conceptional drawing of
our new factory

150（9）Amagasaki Head Ofﬁce Building （10）Shin-Koto
Incineration Plant（4）Former head ofﬁce(Dojimahama)

100（5）Kyoto Factory at the time（3）Former head ofﬁce (Sonezaki)（6）Japan's ﬁrst 24 hour （7）Company namechangeoperating waste
incineration plant

1938

Takuma Boiler Manufacturing Co., Ltd.,50

FY2019 Sales（8）Vacotin Heater

JPY

134.4 billion

founded*Consolidated accounting introduced in FY1990
1938

15

1940

TAKUMA CSR Report 2020

1950

1960

1970

1980

1990

2000

2010

2019 (FY)TAKUMA CSR Report 202016

Introduction to Takumaʼs Businesses

1. Environmental Plant Business(Related SDGs)

Primary equipment improvements

Municipal Solid Waste Treatment Plant Business
Since developing waste incineration technologies using
proprietary technology and delivering Japanʼs ﬁrst fully
continuous mechanical waste incineration plant in 1963,
Takuma has built more than 360 municipal solid waste
treatment plants in Japan. Subsequently, we haveintroduced numerous new technologies and achieved theNo. 1 share of plant deliveries in Japan. Today, we continue
to reﬁne our technologies and embrace the challenge of

operating to the highest possible standards.
Takuma will continue to contribute to stable regional
waste treatment by pursuing integrated initiatives ranging
from the construction of municipal solid waste treatment
plants to after-sales service for those facilities through abroad product line and service based on an extensive trackrecord as the industryʼs leading company.

Stoker-type incinerators are the most common type of waste treatment plant in Japan, and they are a ﬂagship Takuma
product. Today, most incinerators operated by local governments throughout Japan use this treatment method, and Takuma
delivers secure, safe, stable, and highly efﬁcient waste treatment in response to customersʼ needs through advanced technology
and expertise based on its extensive track record.

Reducing environmental impacts

1 Stoker-type incinerators

2 Advanced ﬂue gas treatment

3 Surplus heat utilization equipment

We help reduce environmental impacts with advanced
ﬂue gas treatment technology that reliably removes
toxic substances from ﬂue gas and technology to
reduce the amount of ﬂy ash going to landﬁll.

High-temperature, high-pressure boilers
and other equipment maximize recoveryof the energy stored in waste to realize
high-efﬁciency power generation.

Steam

3 Surplus heat utilization equipment
Flue gas

BoilerEconomizer
Filter-type dust
collector

1 Stoker-type incinerator

Incineration of solid waste｜
Stable combustion
Solid waste introduced into the incinerator
burns consistently at a temperature of
850 C or higher as it moves on the stoker(a step grate combustion equipment).
●

Denitriﬁcation
tower

2 Advanced ﬂue gas treatment

Flue gas treatment｜Reliable removal
Flue gas, ﬂowing out of the boiler andeconomizer, contains toxic substances
which are then reliably removed by aﬁlter-type dust collector and denitriﬁcation
tower, before being released from the stack.

Improving heat recovery

Increasing steam
turbine capacity

Increasing combustion
equipment efﬁciency

・Adding boilers to water
injection furnaces
・Expanding boilersʼ heattransfer area

Increasing generating
capacity by increasing
intake steam volume andoptimizing system design

Increasing combustion stability
and stabilizing evaporation amountand power generation output
through changes in furnace shape

Changing control systems

Increasing efﬁciency

Implementing
inverter-based speed
and airﬂow control

Increasing the
efﬁciency of motors
and other equipment

Realizing high efﬁciency power generation

Stoker-type incinerators realize stable combustionof a variety of waste thanks to proprietary stoker
technology, state-of-the-art instrumentation, andadvanced automatic combustion control.

Steam turbine
generator

Energy-saving Measures

Introduction to Takumaʼs Businesses

Stoker-type incinerators

Realizing stable combustion

Example of a Primary Equipment Improvement Project
Energy Recovery Measures

Plant construction●

70%* of all Japanese municipal solid waste treatment plants, which comprise a key type of infrastructure, have been operating for atleast 15 years, and demand for updating plants and extending their service life is growing due to their aging. Using the advanced heatutilization and energy-saving technologies we have developed as a boiler and environmental plant manufacturer, Takuma helps extend
plant service lives and reduce CO2 emissions through high-added-value primary equipment improvement projects. *According toresearch conducted by the Ministry of the Environment in 2018 and reported in “Municipal Solid Waste Emissions and Disposal.”Long-term comprehensive operation business
The Long-term comprehensive operation business, inwhich customers enter into contracts covering both
operation and maintenance management for a term of 10
to 20 years, has become the most common approach in theindustry in recent years, for example in the form of DBO
projects.
We have currently collected plant operating andmaintenance management data for more than 10 municipal
solid waste treatment plants with, which we use
to provide real-time integrated management of plant and

Takumaʼs Solution Lab remote monitoring and operational support facility

Stack

Utilization of surplus heat |Effective utilization of energy from waste
Heat generated by the waste incineration process is recovered as steam by
the boiler and economizer and used to generate electricity at a steam
turbine generator. The recovered steam is also used as a heat source in theplant and nearby facilities, for example for hot water, heating, and cooling.

Methane gasiﬁcation facilities

Recently the Ministry of the Environment has been encouraging the introduction of Methane gasiﬁcation facilities for use with municipal
solid waste. Takuma is helping reduce incinerated waste volume and environmental impacts with its combined system of methane
fermentation and incineration for municipal solid waste, which recovers the maximum amount of energy possible from waste to realize
highly efﬁcient power generation. (The system received the New Energy Foundationʼs Chairman Award at the FY2014 New Energy Awards.)

equipment operating status.
Additionally, we operate Solution Lab to further enhance
our remote monitoring and operational support functions
for existing plants. Our Solution Lab provides remotemonitoring and operational support by monitoring plantstatus and operating conditions 24 hours a day. It utilizes
the latest Information and Communications Technologies(ICT), including the IoT, big data, and AI, to provide
optimized solutions for customers and support to help
ensure safer, more secure plant operation.

Optimal solutions that meet customersʼ needs

Safe, secure operation and efﬁcient management

Human resources and technological development

We provide high-quality solutions that have been
optimized for customers based on data obtained fromremote monitoring and operational support by identifying
and analyzing issues related to plant operations using thelatest Information and Communications Technologies (ICT).
We also create new value in the form of distinctive
technologies and services so that we can respond to thesocial challenges that will face society in the future.

We provide even safer, more secure operationand more efﬁcient management for customers
through remote monitoring and operational
support functions that utilize the latest ICT.
In the event of the unforeseen circumstances,
our highly experienced engineering staff canprovide precisely targeted guidance tocustomer sites 24 hours a day.

In addition to ICT, facilitating the growth ofthe people involved in operations is essential
in order to ensure plants to be operated in astable manner over the long term.
Solution Lab improves workersʼ technicalskills through highly effective education andtraining using operational training
simulators.

PlantsSolution Lab
serverCollecting data

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

17

TAKUMA CSR Report 2020

Replacing boiler tubes

DeliveryamountCombustion
statusPower generation
statusChemicals/
analysis

Inspection
history

Maintenancehistory

Data analysis andvisualization

Proposing
improvements

・Combustion status and evaluation
・Equipment performance diagnostics
・Optimization of operation plans
・Equipment service life forecasts

TAKUMA CSR Report 202018

1.Environmental Plant Business(Related SDGs)

Water Treatment Plant Business●

Takuma has delivered numerous systems, particularly in relation to technologies for advanced treatment of wastewater, in aneffort 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 and create energy from sewage sludge. In an effort to meet these requirements, Takuma has been focused on
developing a step grate stoker type sewage sludge incineration and power generation system and implemented technologies
using waste heat from the incineration process to generate electricity.
Going forward, we will continue to help conserve the aquatic environment by supplying products that meet the needs of ourtimes.

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 sand 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 ofWater Treatment Plants

Incoming
water path

Incoming
water pipe
Catchmentwater troughPuriﬁcation air
Catchmentwater trough

Raw
water

【Principal equipment】

Filteredwater
Filter layer

Sand washer

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

Pre-processing
equipment
Initial settling pond

Final settling pond

Filter sand washing cycle

Filtered water

Advanced treatment facilities

Reaction tank facilities

which we have delivered more than 2,700 units in Japan. A
design that combines ﬁltration treatment with continuous
backwashing of the ﬁltration sand ensures stable operationand exceptional maintainability.
The product line includes high-speed models withdouble or triple the ﬁltration speed of the standard model
as well as denitrifying and dephosphorizing variants thatadd functionality for eliminating nitrogen and phosphorus
to standard SS elimination functionality.

Air-lift pump

Puriﬁedwastewater

Sand ﬁlter

Introduction to Takumaʼs Businesses

Water treatment plant equipment ﬂow
Sewage intake

Advanced treatment facility【Principal equipment】・Upﬂow moving-bed sand ﬁltration systems (Uniﬂow Sand Filter)Primary wash
Sand is moved toward the top of the ﬁlter while
being vigorously stirred inside the air-lift pump.
Secondary wash
Sand is washed by counter-ﬂowing ﬁlteredwater as it falls inside the sand washer.

Discharge

Anaerobic Anoxictank tank

DisinfectiontankAnoxic Aerobic
tank
tank
Aeration panel

Crude sludge●

Drawn-off sludge

Sludge incinerator【Principal equipment】・Step grate stoker type sewage sludge incineration and power generation

system (step grate stoker furnace and innovative step grate stoker furnace)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 useof the energy contained in sludge by using it as a fuel to generate electricity. Following the systemʼs selection for inclusion in the
Breakthrough by Dynamic Approach in Sewage High Technology Project (B-DASH) by the Ministry of Land, Infrastructure,
Transport and Tourism (Japan) in FY2013, we have received orders for the system from the cities of Tokyo and Sapporo.

Incinerator
Digester tanks

Air-lift pump
Filter bed surface

Excess sludge

Aerobic tank

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

Filter layer

Sludge treatment

Power generation equipment

Generator

Steam produced by the boiler is used to generate electricity.

Heat produced by incinerating sludge isrecovered and used to produce steam.

Dust is removed fromﬂue gas.

SludgeAir
Flue gas
Steam

Sludge treatment facility

Sludge incinerator
Binary generator●

Dust collector

Sludge treatment facility【Principal equipment】

Cleaning nozzle•Rotating drum-type concentrator
A rotating drum-type concentrator consists of a drum-shaped
screen consisting of metal wedge wire that separates andconcentrates solid and liquid components from coagulated
sludge as the drum rotates. Following solid-liquid separation,
sludge is transported to the exit side of the system as it isconcentrated and pushed by spiral-shaped vanes on the insideof the rotating drum. Thanks to a simple design whose
operation hinges on a slowly rotating drum screen, the system
uses less power than its conventional counterparts, yielding
high energy savings.

Drum screen

Concentrated
sludgeSeparator
liquidSludge fed into
the machine

Dryer

TAKUMA CSR Report 2020

Step grate stoker
furnace

Steam from a steam turbine generator
is used to dry dehydrated sludge.

Combustion

19

Waste heatboilerSteam turbine
generator

Photograph taken
inside the furnace

Ash bunker

Combustion air fan
N2O, a gas whose greenhouse effect is
298 times more pronounced than that of
CO2, is broken down by high-temperature
combustion at 900 C to 1,100 C.

Flue gas
treatment tower

Induced draft fan
After ﬂue 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 202020

1.Environmental Plant Business

Kyotango City

Building a regional Sound Material-Cycle Society with advanced biomass utilization technologies

Clean Center construction project by the city of Miyazu
and the towns of Ine and Yosano●

Miyazu-Yoza
Clean Center

YosanoTown

MiyazuCity

Construction

MiyazuCity

Facility overview

Operator

Miyazu Yoza Union Environment

Project type

DBO (Design, Build, Operate)

Facility name

Miyazu-Yoza Clean Center

Project period

Construction phase: April 2016 to June 2020 Operational phase: July 2020 to February 2040

Miyazu-Yoza Clean Center is a wide-area waste treatment facility operated by a city (Miyazu) and two towns (Ine andYosano) in northern Kyoto Prefecture. The complex, which consists of an energy recovery-type waste treatment facility (waste
incineration + methane gasiﬁcation) and a material recycling facility, incorporates the latest biomass technologies and willcontribute to the realization of a Sound Material-Cycle Society.

Energy recovery-type waste treatment facility(Waste incineration facility)
The waste incineration facility uses
high-temperature heat from the waste
incineration process to make hot water.

(garbage, moist paper)(Methane gasiﬁcation facility)
The methane gasiﬁcation facility recovers
methane gas released by waste and uses
it to generate electricity. The heat fromthat process can be reused.

The material recycling facility sorts and recycles waste such as noncombustible
refuse, plastic containers and packaging, and cans. Sorting helps extend the service
life of ﬁnal disposal site by reducing the volume of waste to be landﬁlled.

Electricity
company

Combustible
waste
Organic waste

Residue offermentation

Material recycling facility
Crusherand sorter

Other waste(sorting residue)
Incinerator

Methane gas
Methanefermentation Gas generator
tank

Section 2, Environmental Design Dept. 3
Engineering Center
Takuma Co., Ltd.

21

TAKUMA CSR Report 2020

This project, through which the city of Miyazu and the towns of Ineand Yosano are seeking to realize a safe and hygienic living
environment, was about more than just fulﬁlling the basic role of awaste treatment facility. Reﬂecting its belief that the project is one inwhich a new future can be pioneered through advanced biomass
utilization technologies, the Takuma Group sought to create a modelcase demonstrating how a project could help create a Sound
Material-Cycle Society. In undertaking the project, we identiﬁed threecore concepts: providing peace of mind and vitality to the region,
protecting the environment and coexisting with nature, andsupporting a sound material cycle into the future.
●

Similarly, in planning the facility, we identiﬁed three designconcepts: nature, history, and people. In addition to adopting a designthat blends into the areaʼs rich natural environment, we incorporated
the distinguishing shapes of the regionʼs traditional arts and crafts into
the design, along with features that express gentle hospitality towardvisitors, for example through the natural warmth of wood.
As it turned out, the construction phase posed many unexpectedchallenges, including the discovery of underground obstructions andﬂooding in a waste pit due to heavy rainfall. Nonetheless, we wereable to overcome these obstacles to complete a facility whose
advanced equipment is unique in Japan.

Construction sitePowergeneration

Flue gas
Flue gas
treatment system

Stack

July 2018 (heavy rainfall)

September 2018

April 2019

October 2019

Methane gasiﬁcation facilities

Message from the engineering coordinator

Hiroshi Kogita

Introduction to Takumaʼs Businesses

Ine Town

Project Story

The complex consists of an energy recovery-type waste treatment facility (waste incineration +methane gasiﬁcation) and a material recycling facility. The methane gasiﬁcation facility ferments
waste, paper, and other material that makes up the combustible waste stream to produce
methane, which is then used to run a gas generator, allowing it to be recovered as electricalenergy. Electricity that remains after certain local load requirements are met can be sold back to
the grid.
In designing the methane gasiﬁcation facility, we worked hard to precisely apply the expertise
we have gained through past experience and to incorporate the latest information about otherstate-of-the-art facilities into the plant after a careful vetting process.
It is our hope that in addition to its basic role of treating waste in a hygienic manner, the plant
will contribute to material recycling and to the effective use of biomass energy.

Message from the construction coordinator

Takahiro Kimura
Section 2, Civil &Architectural Engineering Dept.
Construction Center
Takuma Co., Ltd.

The facilityʼs location next to Yoza-Amanohashidate IC about 10 minutes by car from Amanohashidate,
one of the three most famous scenic spots in Japan, makes it a picturesque destination in its own right.
Although the greatest concern when construction began in January 2017 was delays caused byaccumulated snowfall during the winter, the project was blessed with a comparatively mild winter.
However, in addition to boulders and other underground obstructions, a variety of problems, including
inﬂows of muddy water caused by heavy rainfall in nearby mountainous valleys, impacted theconstruction schedule and led to a delay of about 11 months after discussions with the customer.
We were able to overcome the challenges with the customer in cooperation with a local generalcontractor with whom we shared the construction work, sharing information about problems arising ineach scope of the plant construction and the civil work, and revamping the schedule.
Our hope is that the facility, which was completed thanks to the understanding and cooperation of thecustomer and local residents, will continue to operate and develop as a site that can contribute to theregion as part of Takumaʼs comprehensive operation business.

TAKUMA CSR Report 202022

Introduction to Takumaʼs Businesses

2.Energy Plant Business(Related SDGs)

For more than 100 years, Takuma has delivered numerous boilers and plants of various types and speciﬁcations, including foruse in power, shipping, and air-conditioning applications, while accumulating extensive experience and expertise as a pioneerof the boiler industry. We will continue to help realize a sustainable society while working to resolve customersʼ issues as well
as social problems through our business activities.

Products and services
Biomass Power Plants
These plants produce heat and power from a variety of biomass fuels, including wood fuels such as wood chips and bark, PKS, and bagasse.

Contributing to society through business activities
Promoting renewable energy

Making effective use of unutilized
resources
We are helping realize a Sound Material-Cycle
Society by supplying plants that can efﬁciently
burn fuels and waste products that have goneunderutilized in the past.

We are helping preserve the global
environment by supplying plants thatutilize appropriate technologies andsystems to protect the environment.

Advantage

1 Ability to burn a wide range of fuels

These plants can effectively use a variety of substances that have been difﬁcult to use in the past as fuel.

Introduction to Takumaʼs Businesses

We are helping promote renewable energy
by supplying biomass power plants.

Preserving the environment:water, air, and mountain forests

Four Advantages

Reducing CO2 emissions
We are helping realize a low-carbon society
by supplying high-efﬁciency power plants.

Value provided by Takumaʼs Energy Plant Business

Advantage

Wood chips

Bark

Wood pellets

PKS

BagasseLivestock (poultry)
manureRice husks

Corn residue

etc.

2 Custom designs

From our four combustion furnace types, we select the model that best suits each customer's plan and design a plant accordingly.

1．Plant engineering

２．After-sales service

We supply plants that combust a variety of fuels
and waste in a stable manner over extended
periods of time based on our extensive trackrecord 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 over extended
periods of time, including unused lumber, lumber waste,
construction waste, PKS (Palm kernel shells), pellets,
livestock manure, bagasse, and paper 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.

Industrial waste incineration andpower generation facilities

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
in an appropriate manner.

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

Step grate stoker

Advantage

Traveling stoker

Bubbling ﬂuidized bed

Circulating ﬂuidized bed

3 Stable operation over the long term

We supply plants that can operate in a stable manner for decades with the least number of breakdowns or sudden stoppages by designing them basedon our extensive experience and expertise and by maintaining them in an optimal manner, even when biomass with inconsistent properties is used.

Advantage

4 High-efﬁciency, energy-saving performance

We supply plants characterized by high transmission end efﬁciency and boiler efﬁciency by selecting the optimal
combustion method and boiler for each installation and by reducing auxiliary power and the unburnt portion.

* O&M: Operation & Maintenance

23

TAKUMA CSR Report 2020

TAKUMA CSR Report 202024

2.Energy Plant Business

Introduction to Takumaʼs Businesses

Construction

Project Story

Supporting continuity of the renewable energy industry with a biomass power plant

Biomass power plant construction project in Toyohashi, Aichi Prefecture

Customer

SALA e POWER Co., Ltd.

Project name

SALA e POWER Biomass Power
Plant Construction ProjectPower output

22,100 kW

capacity

150 million kWh per year
(Equivalent to the power used byabout 40,000 households)

Principal fuel

PKS, wood fuel, wood pellets

Completion dateJune 2019

The customer, a wholly owned subsidiary of SALA Energy Co., Ltd., which isa central company in the SALA Group and its array of energy-oriented
businesses, was established to operate a wood biomass power plant business.
The biomass power plant that we delivered in this project uses PKS imported
from Southeast Asia as its primary fuel, and it uses the heat generated byburning a mixture of chips produced from unused lumber and other woodfrom Okumikawa in Aichi Prefecture and the Enshu region of Shizuoka
Prefecture to generate electricity.
In addition to providing a clean, stable source of power that also helps
reduce greenhouse gases regardless of the weather, the facility contributes tothe appropriate protection of the regionʼs woodland resources by working
closely with local communities.

Message from the engineering coordinator

TAKUMA CSR Report 2020●

began. The schedule was extremely tight for a plant of this scale,
but we were able to transfer the facility to the customer after
completing it without incident (while setting a record of about
160,000 accident-free hours). The projectʼs successful completionis entirely due to the customerʼs cooperation and the hard work of
the cumulative total of 20,900 employees of Takuma and ofpartner companies who were involved with the plantʼs
construction.
We look forward to taking advantage of the experience gained
from this project to build the kind of plants that are required by ourchanging times.

Construction site

Stakeholder message

Ryoji Higuchi

Mr. Naohiro Fujita

Section 2, Energy Engineering Dept. 1
Project Center
Takuma Co., Ltd.

President
SALA e POWER Co., Ltd.

I currently work in Takumaʼs engineering oversight department, where I am involved with boiler plant planningand design.
Since the project represents SALA e POWERʼs ﬁrst purchase of a Takuma boiler plant, we conducted a series ofhighly detailed meetings, starting during the design phase. I believe that we were able to construct a plant that would
satisfy the customer as a result of the unity and effort by each and every person who was involved with the project.
Going forward, I look forward to contributing to plant planning and design so that we can leverage Takumaʼsexperience and technology to better meet customersʼ needs.

25This plant, which was constructed on a site of about 30,000
square meters on Mikawa Harbor in the Shinnishihama-cho districtof the city of Toyohashi, is one of the few wood biomass power
plants in Japan with a generating capacity of 150 million kWh ayear, equivalent to the power used by 40,000 households. It uses
PKS and lumber from forest thinning in Japan as fuel. Reﬂecting
our belief that the project will play a key role in the adoption ofrenewable energy in Japan, we emphasized an early start ofoperations and thorough safety management in its construction.
Construction began in April 2018, and commissioning began in
April 2019. Work was completed in June 2019, 15 months after it

The energy industry has embarked in an era of consolidation and borderless operations as a result of an across-the-board
liberalization of the power and gas retail sector. The SALA Group has responded to these changes by augmenting its natural
gas and propane supply operations with power retail and generation businesses. We believe that by putting in place structuresthat allow us to carry out integrated operations extending from power generation to power sales, we will be able to earn thetrust, and meet the expectations, of regional society as well as of our customers.
We look forward to supplying clean, stable renewable energy to the region in a way that also helps reduce greenhouse gases
by operating this biomass power plant built by Takuma and to deepen our partnership with local communities while bringing
innovation to the infrastructure that underpins society by making effective use of unused lumber from nearby regions.

TAKUMA CSR Report 202026

Introduction to Takumaʼs Businesses

3.Overseas Business(Related SDGs)

attention from the dual standpoints of global warming
prevention and energy policy based on internationalframeworks such as the Paris Agreement, and there is now amajor trend toward using biomass as a source of power atscale. At the same time, the appropriate treatment of waste is
becoming a particularly pressing issue in developing nations.
The path to solutions is by no means a simple one as a resultof the complexities of environmental awareness, legal
structures, budgets, and other considerations, but there is no
doubt that plants provided by Takuma make a valuable
contribution to achieve the Sustainable Development Goals(SDGs) in a number of areas, including by providing“affordable and clean energy”, aiding in the development of“sustainable cities and communities,” and so on. We willcontinue to harness such products, which are the embodimentof Takumaʼs technologies, to support customersʼ businesses
while contributing to international society.

Deliveries to overseas markets

Founding

856 boilers(Including 380 biomass boilers)
16 waste treatment plants

Takuma exports the industryʼs
Takuma delivers the ﬁrst waste
ﬁrst bagasse-ﬁred boiler to Taiwan. treatment plant in its area in Taiwan.

1986
1938

1949

2009

2010

Kenana Sugar Co., Ltd. (Sudan)

FacilityCompleted

Biomass boiler plant (8 units)
6 units in 1981, 1 unit in March 1999,
1 unit in January 2004
Combustion furnace type Traveling stoker
Steam conditions
113.4 tons per hour 3.2 MPaG 360 C 6 units(normal operation)
136 tons per hour 3.1 MPaG 370 C 2 units
Fuel
BagasseThis bagasse-ﬁred boiler plant was delivered to a customer in
Sudan. Kenana Sugar, which was established in 1976, is a large
company that manages integrated operations extending fromsugarcane cultivation to sugar reﬁning. The project was part of anational effort to take advantage of water from the Nile River and theareaʼs extensive insolation to greenify the region and transform it intoa grain-growing area.
Takuma contributed to regional development by delivering six
boilers in 1981, followed by one boiler each in 1999 and 2004, while
contending with challenges including the projectʼs scale, demanding

requirements, a completely different culture, and a harsh work
environment in distant Africa during a time when communications
were limited. A number of national presidents and other distinguishedguests from various countries attended an elaborate dedication
ceremony following the projectʼs completion in 1981.

Introduction to Takumaʼs Businesses

Our overseas business began in 1949, when we exported
the industryʼs ﬁrst bagasse-ﬁred boiler to Taiwan. During thesubsequent 70 years, we have delivered more than 850 boilers
to overseas customers. The combustion technologies we havedeveloped since our founding can accommodate not only
fossil fuels, but also special fuels such as bagasse, palm, andwood, and we have both supported local industry by providing
a source of power for manufacturing facilities in various
countries and promoted effective use of renewable resources.
We have also delivered 16 waste treatment plants tocustomers in the U.S.A., Taiwan, China, South Korea, andEngland. Takuma technology allows these facilities toincinerate a variety of waste products. We help thesecustomers achieve stable operation over the long term byproviding optimal solutions for waste streams whose
properties vary by country and region.
In recent years, biomass boilers have received new

A 10-Sudan-pound note featuring
a depiction of Kenana Sugar tocommemorate the facilityʼs completion

Lakeside Energy from Waste Ltd. (UK)1992

Takuma delivers its ﬁrst overseas
waste treatment plant in the U.S.A.

Takuma delivers a waste treatment
plant with one of the highest capacities
per boiler (800 tons per day 2 boilers)
in China.

FacilityCompleted
Treatment type
Treatment capacity
Power output

Takuma delivers a waste
treatment plant in England.

Our Achievements

We delivered this waste incineration power plant in 2010
to a customer in Slough, a suburb of London, England. The
companyʼs website introduces the facility as a plant that islarge enough to supply electricity to power all 86,267
households in the area by processing 450,000 tons of waste
to generate 306 GWh of power every year.
Overseas, private-sector companies are often responsible

Waste incineration power plant
January 2010
Step grate stoker
1,370 tons per day (685 tons per 24 hours 2 units)
36,650 kW (rated)

for waste treatment, including municipal solid waste, atfacilities such as this one. Durable plants that can operate athigh efﬁciency in a stable manner over the long term areessential in order to improve the proﬁtability of revenue
such as processing fees and power sales when such plants
are operated as a business, and this facility has earned highpraise in this regard.

Message

TSM Group (Thailand)

嘉義縣鹿草垃圾焚化廠

TSM Power Co., Ltd.
Thai Udonthani Power Co., Ltd.

Facility

Treatment capacity

Waste incineration
power plant

900 tons per day(450 tons per 24 hours 2 units)

Facility

Steam conditions (normal operation)

Biomass boiler plant (4 units)

CompletedPower output

150 tons per hour 4.2 MPaG 450 C 2 units
170 tons per hour 4.2 MPaG 450 C 2 units

December 2001

28,000 kW (rated)

Completed

Treatment type2 units in November 2012,
2 units in January 2019

Step grate stoker

Combustion furnace type
Traveling stoker

27

Yasuo Takamatsu

LuTsao Incineration Plant, ChaiYi County (Taiwan)

TAKUMA CSR Report 2020

Fuel
Bagasse

Deputy Executive Manager
International Division
Takuma Co., Ltd.

The eight boilers we have delivered to Kenana Sugar continue to operate today, close to 40 years after theﬁrst units were delivered. Ten years has passed since we delivered the facility we completed in 2010 for
Lakeside EfW, and that plant, too, continues to operate smoothly and earn high praise from the customer as
Europeʼs No. 1 EfW plant. Our products contribute to our customersʼ businesses and to society by operating
in a stable manner over the long term, and their performance is our greatest pride. Although the overseas
business poses unique challenges that must be met before a plant can be delivered, I look forward tocontinuing our initiatives in this area as a bridge to the future, based on the willingness to embrace difﬁcult
challenges that we inherit from those who came before us and the experience we have accumulated to date.

TAKUMA CSR Report 202028

Introduction to Takumaʼs Businesses

Main Recent Projects
The following are the main plants supplied by Takuma during FY2019.

Municipal Solid Waste Treatment Plant Business

Water Treatment Plant Business

Energy Plant BusinessPrimary equipment improvements

Project nameYamaguchi City Incineration Plant
Primary Equipment Improvement Project

Capacity
Incineration facility: 220 tons per day (110 tons per 24 hours 2 units)
Power output: 3,600 kW

CEPO Handa Biomass Power Co., Ltd.

SALA e POWER Co., Ltd.

Aoki Environmental Enterprise Co., Ltd.

Project name

Project name

Project name

Project nameTokyo Kasai Water Reclamation Center Sludge
Concentration Tank No. 4
Machinery and Equipment Improvement Project

CEPO Handa Biomass Power Plant
Construction Project

SALA e POWER
Biomass Power Plant Construction Project

Waste Incineration Power Plant
Construction Project

Equipment capacity and speciﬁcations

Equipment capacity and speciﬁcations

Equipment capacity and speciﬁcations

Equipment capacity and speciﬁcations

Project overview: Update work on a sludge scraper
Type: Center-drive post type
Capacity: φ28,000 mm 1 unit

Fuel: PKS, wood fuelSteam conditions (normal operation):
190 tons per hour 6.2 MPaG 480 C
Power output: 50,000 kW

Fuel: PKS, wood fuel, wood pellets
Steam conditions (normal operation):
85 tons per hour 6.0 MPaG 480 C
Power output: 22,100 kW

Treated waste type: Industrial waste
Treatment capacity: 93.6 tons per day
Power output: 1,050 kW

Location

Location

Location

Location

Niigata Prefecture

Aichi Prefecture

Aichi Prefecture

Tokyo

Introduction to Takumaʼs Businesses

Yamaguchi City Incineration Plant

Tokyo Kasai Water Reclamation Center

Location
Yamaguchi Prefecture

Hayashi Plywood Industrial Co., Ltd.
Project name
Biomass Power Plant Construction Project
Equipment capacity and speciﬁcations
Fuel: Wood fuelSteam conditions (normal operation):
31 tons per hour 5.98 MPaG 415 C
Power output: 6,800 kW

Uji City Higashiuji Sewage

Osaka City Hokko Landﬁll site

Kochi Prefecture Urado Bay Eastern

SARA Inc.

Treatment Plant

Project nameBasin Takasu Sewage Treatment Plant

Project name

Uji City Higashiuji Sewage Treatment Plant
Water Treatment Equipment Project No. 17

Hokko Landﬁll site
Wastewater Treatment Facility
Restoration Work (Phase 2)

Equipment capacity and speciﬁcations

Equipment capacity and speciﬁcations

Project overview: Modiﬁcation to early sedimentation,
reaction tank, ﬁnal sedimentation,
disinfection, and water equipment
Capacity treatment volume: 3,650 m3 per day
Treatment method:
Biological nitrogen removal with agglomerating agent
Speciﬁcations: Aeration system, sludge scraper, etc.

Project overview: Work to restore operation to a wastewater
treatment facility that was damaged
by Typhoon 21 in September 2018
Capacity treatment volume: 3,000 m3 per hour
Treatment method:
Coagulating sedimentation
Speciﬁcations: Turbid water treatment system

Location

Location

Kyoto Prefecture

Osaka Prefecture

Project name29

TAKUMA CSR Report 2020

Project nameUrado Bay Eastern Basin Takasu Sewage
Treatment Plant
Sludge Treatment System Construction Part 15

Equipment capacity and speciﬁcations
Project overview: Dehydrator expansion work
Type: Pressurized screw press dehydrator
Treatment capacity: 225 kg-DS per hour

Location

Location
Kyoto Prefecture

Waste Gas Puriﬁcation System
Installation Project
Equipment capacity and speciﬁcations
Equipment overview: Equipment to supply CO2
Waste gas source: Incineration waste gas frombiomass power plant
CO2 supply volume: 2,750 kg of CO2 per hour
Location
Okayama Prefecture

Kochi Prefecture

TAKUMA CSR Report 2020

30

CSR Activities for the Future
The Takuma Groupʼs relationshipwith society

Creating social value through corporate activities and businesses

Realizing the corporate vision

Along with trusting relationships with customers and other stakeholders, our technical capabilities and expertise in the areas of theenvironment and energy that we have accumulated over many years based on our Management Principles lie at the heart of our businessactivities and comprise a core strength that allows us to make a broad contribution to society. Takuma creates value for, and contributes
to, society through corporate activities and businesses that draw on these strengths. This section introduces some examples.

Basic approach
Contributions to SDGs

Creation of social value
Customers

Shareholders
and investors

Employees
Business
partners●

Environment

Water treatment plant
Energy plantSocial●Clean centers as regional facilities

Imabari City Waste Management Center (informallyknown as “Bari-Clean”), which was delivered by Takuma, isa facility that contributes to its region in many ways, forexample by hosting environmental events attended by local
residents and by serving as a shelter in times of disaster.

Waste treatment plant

Environment●

We help reduce CO2 emissions by burning waste andbiomass fuels, recovering the heat that is produced, andusing it to generate electricity. (See page 34 for details.)

Regional
society

Provision of products and services

Helping reduce CO2 emissions

GovernanceManagement Principles

Environmental, social, and governance initiatives

ENVIRONMENT
Environmental
Initiatives
Page 33

GOVERNANCE
GovernanceInitiatives
Page 47●

Constructing a new building (Training Center) at Takumaʼs head ofﬁce

Takumaʼs new building which is scheduled to be completed in October
2020, will help realize a sustainable society by augmenting ordinary ofﬁcefunctionality with a variety of features, including use of Cross-LaminatedTimber (CLT) and plant remote monitoring and operational support.

CSR issue

Department●●

Bari-Clean Beautiﬁcation Project Shelter training exercise(Planting ﬂower beds)

Enhanced plant remote monitoring and operational support
Effective use of Japanese lumber, including CLT and ﬁre-resistantlaminated lumber, as building materials●

Disaster prevention functionality for the region,
including a high level of ﬁre and seismic resistance●

Employee training and skill development

FY2019 action program
Action plan

Self-evaluation of results

Engineering
Division

Enable the optimization of power sales volume without regard to individual
skills and abilities by building an operational plan optimization system.

We were able to increase power sales volume by using system-generated operational plans andcomparing them to power sales volume for operational plans proposed by human workers.

Engineering
Division

Actively contribute to the resolution of environmental problems by pursuing measures
to save energy and reduce CO2 emissions at plants during the planning stage.

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

Engineering
Division

Carry out safety-focused design and design review processes so as to eliminate
accidents at facilities after they have been transferred to customers. Additionally,
utilize review lists and checklists, and carry out performance veriﬁcations during
plant commissioning in order to achieve stable operation of facilities after handover.

There were no instances of additional work related to safety measures being
carried out at facilities that have been transferred to customers or of problems
related to stable operation as of the time of transfer.

Initiatives to establish appropriate working General Affairs /Human Resourcesconditions and healthy work-life balance
Division

Reduce overtime work, for example by streamlining operations and leveling
employee workloads after having all personnel take an operational inventory andput in place an environment in which employees can actively take time off.

We completed an operational inventory, developed an associated manual, andworked to level employeesʼ workloads. As a result, we were able to achieve the goal.

Occupational health and safety initiatives
in areas such as testing

Engineering
DivisionWith regard to testing and related operations, in addition to verifying safetymeasures at progress management meetings that are held on a regular basis,
prevent occupational accidents by thoroughly carrying out advance reviews andreporting of safety and hygiene, for example by using work journals and checklists.

In addition to verifying safety measures, for example at meetings, weprevented occupational accidents by developing checklists related to safe
work and by thoroughly carrying out advance reviews and reporting.

Contributions to resolving
environmental problems

Initiatives to save energy and reduce CO2
emissions

Consumer issues

Safety and quality of products
and services

Design of facilities that satisfy customers
through safe, stable operation

Labour practices
and human rights

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

Community involvementand development

Contribution to society

Contribution to the communities aroundour worksites

Marketing
Division

Carry out community service activities that align with issues in the areas
around worksites.

Employees participated in volunteer clean-up activities in June in areas
around worksites.

Compliance

Cultivation of a robust corporate culture

CSR Division

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

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

Risk management

Study and implementation of risk
management plans

Marketing
Division

Formulate risk reduction measures by working with related departments at
Takuma to identify and visualize risks before and after orders are received.

We conducted negotiations with customers to avoid and mitigate
identiﬁed risks during the pre-order stage and continued to put in placestructures for managing various risks during the post-order stage.

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

Planning
Division

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

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

Compliance with
the Antimonopoly Act

Assurance of understanding of, andcompliance with, the Antimonopoly Act

Marketing
Division

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

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

Organizational
governanceFair operating
practices

31

Communities Kizugawa, Kyoto Prefecture Hokutan region, Hyogo Prefecture
servedFujisawa, Kanagawa Prefecture Kasaoka, Okayama Prefecture

Environment

SOCIAL
Social Initiatives
Page 37

Key issue

The Takuma Groupʼs Takuma Energy strives to increase the added
value of power plants while revitalizing the regions in which thoseplants operate by supplying power generated by waste power plants
and biomass power plants delivered by Takuma to local communities.

Facility features

As Takuma looks toward the future and strives to become a sustainable company, we choose key issues involving the environment,
society, and governance based on the GRI Standards (a set of international guidelines on corporate sustainability reporting) and ISO 26000
and then work to resolve them. Each department discussed CSR issues in line with those key issues and developed its own action program.
At the end of the year, these departments then conducted self-evaluations to assess how well they had implemented their programs.
The table below outlines some of the results of that process.

ISO 26000
core subjects

Revitalizing the region through local generationand consumption of power

TAKUMA CSR Report 2020

CSR Activities for the Future

Takuma provides products and services centered on
environmental and energy plants on the basis of its
environmental, social, and governance initiatives. We believethat the entire range of business activities pursued by
Takuma with regard to social requirements, expectations,and responsibility in this way collectively constitute CSR.
The sustainability of society has been called into question
in recent years in a trend that is illustrated by the very phrase
Sustainability Development Goals (SDGs). Going forward,
Takuma will continue to strive to realize a sustainable
society along with the Groupʼs Management Principles andcorporate vision by adding new social value to its products
and services and by contributing to the resolution of social
issues.

TAKUMA CSR Report 202032

E NVIRONMENT ーEnvironmental Initiativesー

The Environment
Basic Environmental Policy

Takumaʼs CO2 Emission Reduction Technologies

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

We convert waste/biomass into energy and reduce CO2 emissions!

In 1 year, Takuma products

Equivalent tothe annual CO2 emissions
from the population of Osaka

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.”

cut about 5 million tons!

Assuming per-capita CO2 emissions of 1.92 tons
(household emissions for FY2018)
Source: Greenhouse Gas Inventory Ofﬁce of Japan

Operational Guidelines
１. All Takuma Group companies will recognize the importance of maintaining a balance between preservation of theenvironment and business activities.

Reducing CO2 emission with biomass power plants

２. Continuously develop activities to preserve the environment that comply with applicable environmental laws and ordinances,and ensure environmental control and assessment systems conform to international environmental standards.

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 apulp, and sugar is extracted in a mill. The remaining ﬁber is called bagasse andcan be used as plant fuel. The steam and electricity generated by the plant areused as sources of heat for the milling process and of power for plant operations,while surplus power is sold to a power company. The amount of power
generated at sugar factories has grown greatly, with examples of single plantthat generate 50,000 kW.

４. Address resource conservation, energy efﬁciency, recycling, and minimization of waste generated by all business activities.
５. Enhance emplyees' 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.

●●

How does biomass power generation help reduce CO2 emissions?
Biomass is any recyclable organic material derived from a living

Environmental Management

organism, but does not include fossil fuels, such as oil and coal. For

The situation concerning the acquisition of ISO 14001

this CO2 is offset as it is absorbed through photosynthesis in the growth

example, even though CO2 is emitted when wood chips are incinerated,

Takumaʼs biomass power plants(as of end of FY2019)

Wood
chips

EnergyPalm
Bagasse kernel
shellsBiomass power generation helps reduce the amount of electricity
generated from fossil resources, helping lower CO2 emissions.

Biomass power plant

CO2 emission reduction from waste incineration plants
Waste, is an important source of energy. Approx. 500 kW** of power can begenerated from one ton of waste. In Europe and the Americas, waste
incineration plants are often called Energy from Waste (EfW) plants, andrecovering energy from waste has become the norm. Waste means “resource.”
Takuma is seeking to be the best in the world with our technologies to convert
waste into energy and reduce CO2 emissions.
** Presumes waste with a caloriﬁc value of 8,800 kJ per kg
and a plant with electrical efﬁciency of 20%

Harima Factory

1 ton ofwaste

TAKUMA CSR Report 2020

CO2 emission reduction achieved byprocess of trees, thus there is no increase in CO2 in the atmosphere.

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.

33

cut approx.
4 million tons!

The Environment

３. Promote development of better technologies and products for society that preserve the environment.

In 1 year,

Waste
combustion

Approx.

500kW ofpower
generated

In 1 year,

cut approx.
1 million tons!
CO2 emission reduction achieved by Takumaʼsmunicipal solid waste incineration plants(as of end of FY2019)

TAKUMA CSR Report 2020

34

The Environment

Environmental accounting

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

Environmental data (non-consolidated)●

Total energy usage●(Tons-CO2 per year)(GJ per year)

60,00030,000900

300

22,307

3,125

19,318―

14,277―

36,120Administration costs
R&D costs●

14,301

1,637,750

Social activity costs―

12,863

Total

21,1901,742,635

Environmental conservation effectEnvironmental conservation beneﬁt is measured in physical units and is the
beneﬁt obtained from the prevention, reduction, and/or avoidance ofenvironmental impact, removal of such impact, restoration following the occurrenceof a disaster, and other activities. (“Environmental Accounting Guidelines”)

Water resource inputs(m3 per year)

600

3,764

Global environmental conservation costs
Resource circulation costs

2015 2016 2017 2018 2019 (FY)60,000Total production of waste, etc.
Recycling
Total ﬁnal disposal volume of waste, etc.

Pollution prevention costs

Business area costs

The greenhouse gas emitted by Takuma is limited tocarbon dioxide (CO2). The amount of CO2 emissions in
FY2019 rose slightly compared to FY2018 levels. We willcontinue striving to reduce CO2 emissions.
●

Costs(thousand JPY)

Item

40,000FY2018FY2019(1) Environmental conservation beneﬁt related to resources
input into business activities

20,000Total energy input volume (GJ)

95,047

100,973

Input volume of water (m )48,03447,3403

Scope of data collected●

Period covered: April 1, 2019, to March 31, 2020●

Companies targeted:
12 domestic companies●●

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 companies(2) Environmental conservation beneﬁt related to waste or002015 2016 2017 2018 2019 (FY)

Although total production of waste, etc., grew during FY2019
compared to FY2018, total ﬁnal disposal volume of waste, etc., grew only
slightly thanks to appropriate treatment such as recycling. Going forward,
we will work to reduce the amount of waste we generate. Although wework to recycle and reuse waste, waste that cannot be reused is disposedof in accordance with the Industrial Waste Control Manifest System.

environmental impact originating from business activities

2015 2016 2017 2018 2019 (FY)

Water consumption during FY2019 fell slightly comparedto FY2018. We will continue to work to lower our water use.

●

Volume of greenhouse gas emissions (tons-CO2)

3,977

4,273

Total waste emissions volume (tons)

934

1,047

Final waste disposal volume (tons)

150

155

Wastewater volume (m3)

48,03447,340BOD emissions (kg)

2,565

2,567

COD emissions (kg)

2,747

2,760

T-N emissions (kg)

693

706

T-P emissions (kg)

121

125

●

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) Law, in accordance with relevant laws and ordinances, with the local government.

Dichloromethane (CAS No. 75-09-2)
FY

Emissions (tons per year)
●

●

0.42

0.43

0.45

0.27

0.08

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

Emissions (tons per year)

Ethylbenzene (CAS No. 100-41-4)

2015 2016 2017 2018 2019

FY
Emissions (tons per year)
●

0.26

0.09

0.07

0.06

0.09

FY
Emissions (tons per year)

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

35

TAKUMA CSR Report 20202015 2016 2017 2018 2019
0.34

0.14

0.96

0.98

1.34

Xylene (CAS No. 1330-20-7)

2015 2016 2017 2018 2019

Taiden Environtech Co., Ltd.
Siam Takuma Co., Ltd.

●PRTR target substance emissions (non-consolidated)●

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

2015 2016 2017 2018 2019
2.22

2.85

1.18

1.12

1.47

The Environment

Total production of waste, etc.

Investment(thousand JPY)

Item

0

2015 2016 2017 2018 2019 (FY)

The total energy usage of the fuel and the electricity
consumed at Takuma during FY2019 rose slightly
compared to FY2018 levels. We will continue to promoteenergy savings from here on out.

(Tons per year)

3,000

1,500

We have disclosed our own environmental accounting systemsince FY2006 when we introduced it 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 theneed for environmental conservation, and we have been
implementing approaches toward such issues within the
Takuma Group.

Environmental conservation cost

Investments and expense related to the prevention, reduction, and/or
avoidance of environmental impact, removal of such impact, restoration
following the occurrence of a disaster, and other activities are measured
in monetary value. (“Environmental Accounting Guidelines”)

4,500

0

●

●

Greenhouse gas emissions

90,000

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 andeffective manner while maintaining a good relationship withsociety so as to facilitate sustainable development.

The Takuma Groupʼs deﬁnition of
eco-efﬁciency

Eco-efﬁciency
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 eco-efﬁciency using an index calculated in accordance with
examples provided by the Ministry of the Environment in its
Environmental Performance Indicators Guidelines for Organizations.
At the Takuma Group, we calculate eco-efﬁciency as the ratio ofconsolidated net sales to greenhouse gas emissions. In FY2019, this value
improved slightly compared to FY2018.

Consolidated net sales (million JPY)
Greenhouse gas emissions (tons-CO2)●

Eco-efﬁciency

40
30

29.12

26.82 28.61

30.66 31.47

20
10
0

2015 2016 2017 2018 2019 (FY)TAKUMA CSR Report 2020

36

SOCIAL ーSocial Initiativesー
Human Rights and Labor Practices

Respect for Human Rights and the Abolition of Discrimination
Our company sets out its respect for basic human rights andprohibition 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 Code of Conduct (excerpt)【Respect for basic human rights】
9. Prohibition of discriminatory actions
10. Respect for personality, individuality,and privacy of employees
11. Safe work environment●

３．Initiatives that promote diversity

1 Initiatives to increase female participation
In addition to putting in place a workplace environment that provides ﬂexible workstyles and continuous employment, we havecontinued to pursue initiatives that encourage employees to understand Takuma. Our goal is to increase the number of female
employees in management positions and the number of female employees on the main career track (including individuals who havebeen tentatively offered positions) as of March 31, 2021, to 20, which would be double the corresponding number as of March 31, 2016.

Employee data

*As of March 31, 2020

Number of employees【Number of newly hired employees over the last 5 years by gender(Figures in parentheses: number of newly hired graduates for main career track positions)】

875(Including 805 men and 70 women)

Average age

43.2

Average years of service

15.5

Attrition rate

1.6% (past 3 years)

FY2018FY2019Men

26(19)

27(18)

28(19)

34(17)

38(16)

Women

2(1)

２(1)

2(2)

3(2)

3(2)

Total

28(20)

29(19)

30(21)

37(19)

41(18)

Human Rights and Labor Practices

Stress checks
Lifestyle disease checkups (added to regular checkups)● Cancer screening and stomach tests (for interested employees)

Reassessing workﬂows ● Streamlining and improving operations● Utilizing chat tools● Utilizing videoconferencing systems● Automating work using RPA*
*RPA: Robotic process automation●

2 Putting in place an environment that encourages employees to take annual paid leave
Reﬂecting our respect for employeesʼ individuality, we treat simultaneous leave as special leave in line with our employment
rules, which means it does not count against employeesʼ annual paid leave. In addition, weʼve put in place an environment thatencourages mutual understanding and cooperation among employees while making it easy for all employees to take annual
paid leave by having team members announce in advance their plans to take ﬁve days of allotted annual paid leave each year.

【Average number of days of annual paid leave, number of annual public holidays and leave days, and number of special leave days (unit: days)】
FY2015FY2016FY2017FY2018FY2019Average days of annual paid leave taken

7.9

6.5

6.7

8.7

8.9

Annual public holidays and leave days (except annual paid leave)

129

129

128

129

132

Of which, special simultaneous leave days

11

11

12

13

9

２．Initiatives related to work-life balance
We have introduced the following programs to facilitate healthy work-life balance and to help employees make the most of
their skills and abilities while balancing their work with child-raising and nursing-care responsibilities.
Half-day annual paid leave program ● Childcare leave ● Nursing-care leave ● Flex time program
Telework program ● Leave program for husbands whose wives are giving birth

TAKUMA CSR Report 2020

FY2017

４．Employee health initiatives

1 Initiatives related to improving productivity and streamlining operations

37

FY2016

We added the Ofﬁce Support Section to the Human Resources Department to provide work assistance and management fordisabled individuals and to aid in the “outsourcing” of various internal tasks to these workers as a way to boost employment of
disabled individuals. Individuals with disabilities, including serious or mental disabilities, do cleaning and other light work to
assist Takuma employees.

１．Workstyle reform initiatives●

FY2015

2 Initiatives to increased participation by disabled individuals

Employee retention programs●

We have children ages 2, 6, and 10, and we both work. Until now, when one of our kids gets sick, weʼve used thechildcare program for kids recovering from sickness, and when thatʼs not available, weʼve adjusted our schedules or usedannual paid leave or half-day paid leave. The availability of a work-from-home option has been extremely helpful for
our family. (Main career track male employee in his 40s)

Takuma Group Ethics Charter (excerpt)
4. We shall respect fundamental human rights
and never practice discrimination.

Working with Our Employees
Making the most of each and every employeesʼ skills andcreating workplaces where employees can feel engaged andmotivated while working over the long term are top priorities
for Takuma.
We reorganized our Human Resources Department in April
2020 to better address manpower shortages, develop
employeesʼ skills, and realize workstyle reform, work-lifebalance, and diversity. As part of those changes, new Human
Resources Development and Ofﬁce Support sections werecreated to develop workplace environments that value people
so that employees can feel more motivated and better takeadvantage of their skills.

Impressions from an employee who has taken advantage of Takuma's telework program

Health consultations by industrial physicians (once a month)Counseling by clinical psychologists (twice a month)● Interviews and follow-up conversations with employees who are working
unusually long hours

●

●

●

●

Initiatives to help develop employee skills and boost motivation
１．Educational and training programs＜Grade-speciﬁc educational programs＞
Weʼre working to enhance employee ability,
technological skills, and management capability byoffering grade-speciﬁc educational programs, from newhires to management candidates.

Newemployee
training

Technical
presentationby 2-year
employees

Thesisdiscussionby 5-year
employees

Presentation
by 10-year
employees

Midcareer
training

Management
training＜Technical training sessions＞
We hold several technical training sessions a year in order to increase employeesʼ technicalknowledge, including lectures by university professors and outside researchers and presentations by
Takuma engineering employees about their work responsibilities and research themes.
＜Support for skill development＞
We reimburse employees for the cost of acquiring various licenses and offer incentives for earning
professional certiﬁcations.
＜Help for building language skills＞
To improve employeesʼ language skills, we host the TOEIC test twice a year and offer incentives to employees who earn a high score.

TAKUMA CSR Report 2020

38

SOCIAL ーSocial Initiativesー
Human Rights and Labor Practices

Working with Our Employees

Efforts for Occupational Safety and Health２．Career development programs
Supervisors schedule two interviews with each subordinate every year to review progress toward operational
goals and listen to their wishes and advice directly.
● A self-reporting program session is held every three years to facilitate long-term career development.
● A work group transfer program facilitates movement from clerical and labor positions to the main career track.
●

３．In-house commendation system
We hold an award ceremony commemorating the founding of the company every
year on June 10, the date on which Takuma was founded, to recognize employees
who have given exceptional service.
●●●

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 otherintellectual 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,patent commendations
Length-of-Service Award(Every 5 years of service after 20 years)

We have introduced a number of social welfare programs, including a cafeteria plan and employee shareholder association,
designed to meet a diverse array of employee needs.

Question: Why did you decide to join Takuma?
I felt it would be appealing to work for a business that plays asupporting role in many peopleʼs lives behind the scenes.
● When I participated in an internship at Takuma as a student, I saw
how older colleagues were engaged in their jobs, and I realized Iʼdlike to work here, too.
● I liked the way Takuma gives young people lots of responsibility.
● Iʼm able to put what I learned as a student to use.
●

Question: What do you ﬁnd motivating about your job?
The scale of the facilities we build, for example power plants Iʼve
been involved with that provide enough power for tens of thousandsof peopleʼs homes● An environment that lets you embrace whatever challenges youʼrewilling to set for yourself● Expressions of joy from customers when a plant I helped build starts
operating… theyʼre enough to make me forget all the hard work thatwent into the facility!
● The ability to gain practical experience from a young age●

Question: What are your future goals?
To become an engineer who earns the trust of others, both insideand outside the company● To leave concrete expressions of my own experience and skill thatcan be passed down to younger colleagues● To strive daily to become a manufacturing professional● To consistently present optimal proposals to customers despite●

frequent changes in applicable laws and regulations

work stoppages (of four or more days); for branches, pursuing athorough 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 with partnercompanies. We will work to revitalize safety and health activities
throughout the company by carrying out that role.
Rather than contenting ourselves with the status quo, we will
pursue new safety and health initiatives to foster a strong
awareness of the concept that underlies our safety and healthpolicy -“understanding the need for respecting people and giving
top priority to safety and health”- on the part of everyone whoʼs
involved in our operations.

Safety and health activities and their results

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.

２．Safety patrols and safety lectures
Based on an annual plan, safety patrols are carried out atworksites by the Safety and Health Committee (comprisedof committee members and advisors), Safety Control
Department, and construction division along with safety
lectures in a precisely targeted and efﬁcient manner.
Safety patrols focus on identifying and eliminating risks
as early as possible, while safety lectures are conceived toprevent 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.

●

FY2019Number of safety inspections
done: 212

A safety inspection meeting●

Human Rights and Labor Practices

Employee feedback (from Takumaʼs website)

TAKUMA CSR Report 2020

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
FY2020: for construction sites, eliminating accidents that result in

１．Safety inspection system

Social welfare programs

39

Occupational safety and health initiatives

Number of safety patrols implemented in FY2019

By Safety and Health Committee (members, advisors)：95
By Safety Control Department：236
By construction division：362

Safety patrols

Safety lectures

３．Safety and health education (education for construction site representatives)
We continuously provide specialized safety and healtheducation at branches and worksites to increase the levelsof safety awareness and knowledge of our employees andpartner companies.
As indicated at right, more than 19,000 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 2020

Cumulative number of trainees：35,682
Number of trainees passing the completion exam：19,099

Head Ofﬁce venue

Tokyo Branch venue

TAKUMA CSR Report 202040

Efforts for Occupational Safety and Health
Safety and Health Promotion Meeting
Takuma holds a Safety and Health Promotion Meeting tobring workers with safety- and health-related
responsibilities together to improve and share their safety
and health awareness with the goal of ensuring worker
safety and health and promoting the development of apleasant work environment. During FY2019, we presented
awards to businesses that helped achieve a zero-accident
record at our worksites and hosted a guest lecture entitled,

Message from a partner company“Creating True Safety in the Context of Japanese Honne andTatemae.” In addition, safety and health partner companies
gave presentations on their safety and health policies andgoals, and all participants closed the meeting by chanting
the FY2019 slogan and pledging to continue to work towardthorough safety and health management by utilizing
TK-COHSMS.

Mr. Tetsuyuki Okabayashi
Safety Quality Training
Department General Manager
Executive Ofﬁcer
Asahi Synchrotech Co., Ltd.
Presentation of a zero-accident record award

Pointing and chanting of the slogan
by all participants

Takuma's safety results in recent years(Number of casualties, accident frequency rate, and accident severity rate)

15

3.93

4.0

3.00
Number ofcasualties(persons)

9
2.03

10

12

1.76

5

0.79
0

3.0 Takumaʼs

3

0.87

2016

2017

0.06
2018

Takumaʼs safety results

TOPICS

2.16

5
0.03

2015

1.76

accident
2.0 frequency
rate andseverity rate
1.0

3
0.0

2019 (Year)posing a serious problem that needs to be addressed. We
will work to eliminate occupational accidents through a
uniﬁed and redoubled effort by all involved to halt thistrend while strengthening risk management and enhancing
our safety and health management structures.
Year

Accident
frequency
rate

Accident
severity
rate

2015

0.92

0.21

2016

0.64

0.11

2017

0.81

0.18

2018

1.09

0.30

2019

1.69

0.29

* Accident frequency rate
Indicates the frequency with which
accidents occur as the number offatalities caused by occupational accidents
per 1 million actual working hours.
Number of casualties
Total actual working hours

From the Takuma department responsible for the project

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 average accident frequency and severity rates
for the construction industry (general construction)

Jyunichi Hashimoto

President Sakaguchi of SEIKO Co., Ltd.,
honored at Construction Station Ginosya Kensyo (Engineer Awards)

General Manager
Construction Dept. (Tokyo)
Construction Center
Takuma Co., Ltd.

In October 2019, President Michiko Sakaguchi of SEIKO Co., Ltd., a partner company in the Sludge
Incinerator Redevelopment Project at the Takuma-built Tamagawa Joryu Water Reclamation Center,received the Engineering Excellence Award at the 27th CCI Tokyo Construction Station Ginosya
Kensyo (Engineer Awards).
The accolade is conferred by the Tokyo Metropolitan Government in recognition of exceptional
engineers who utilize advanced skills and specialized knowledge, exhibit leadership at construction
stations, and work to improve safety and quality through better communication.
The honor is especially meaningful for construction sites where a variety of partner companies lendassistance on a daily basis. Going forward, Takuma will continue to build plants in close partnershipwith all stakeholders, including partner companies, in order to improve safety and quality.

Human Rights and Labor Practices

Although the total number of worked hours in 2019 roseabout 22% from the previous year, the total number ofoccupational accidents and accidents leading to missed
workdays fell compared to 2018. However, the accident
severity rate signiﬁcantly exceeded the national average,

We do a lot of work for Takuma as a construction management company that focuses
primarily on pipe equipment in plants. Last ﬁscal year, we were proud to work closely with
Takuma on the building of a number of plants, including the CEPO Handa Biomass Power
Plant, the Ako Plant of Nihonkaisui, the Aoki Environmental Enterprise Energy from Waste
Plant, and the Hikarigaoka Incineration Plant.
With regard to safety management, weʼve put in place construction structures based onwhat we learned at site manager training offered by Takuma, and we work to identify
potential hazards when compiling SSAs (safe work procedures that are created bysubcontractors before starting each dayʼs work). We develop construction methods that aredesigned to reduce potential hazards through risk assessment based on a carefulconsideration of how to transport materials at the site and how to set up temporary staging,
before work begins.
Then we strive to perform work safely at the site using those predetermined construction
methods while exercising care with regard to the progress of other companiesʼ work andmixed-company work, all under the umbrella of Takumaʼs safety management.
Additionally, our sales managers and Safety Management Group conduct safety patrols atleast once a month. Those patrols assess conditions at the site, check for problems in terms ofsafety management and construction management, and meet with the employees
responsible for supervising work to take corrective action to address any issues that wereidentiﬁed.
We look forward in the future to improving our employeesʼ construction management skills
with the goal of eliminating accidents by offering supervisor training and to working
alongside Takuma to implement safety management and construction management atworksites.

We turn to Asahi Synchrotech Co., Ltd., to carry out pipe equipment installation work at
numerous construction projects, including Takuma waste incineration facilities and biomass
power plants. In the area of safety and health activities, Asahi Synchrotech is an associatesafety and health partner company, and weʼre deeply grateful for the enormous cooperationand hard work that they bring to our projects.
About seven years ago, I worked as the site manager at the Joso Environmental Center
Third Waste Treatment Facility Construction Project. The site, which uses three pyrolytic
gasiﬁcation melting furnaces to treat waste, was characterized by not only a large number ofpieces of equipment, but also an extensive amount of work associated with pipe equipment
installation. It was an extremely long project, but we were able to complete it without a single
accident. Out of the many construction projects weʼve worked with Asahi Synchrotech on,
there have been only two non-lost-time incidents, and overall the company has an extremely
successful track record.
Safety management is generally considered to consist of risk management, and the risk ofan accident occurring rises as projects involve more time and people, increasing the factors
and opportunities that could trigger an accident. In theory, accidents can be prevented by
identifying these risk factors and eliminating them in advance through safety and healthmanagement at the site. Although itʼs easy to formulate this approach on paper, in fact its
successful implementation requires having everyone involved with the construction,
including all contractors, at a site where conditions change daily carefully examine the siteand develop effective measures accordingly as they painstakingly and methodically utilize
their knowledge to eliminate risk one day at a time.
We look forward to having Asahi Synchrotech continue its basic stance toward safety andhealth management in the future as the company cooperates with Takuma on safety
management so that we can achieve our goal of eliminating accidents in all projects.

Ms. Michiko Sakaguchi (center)

41

TAKUMA CSR Report 2020

TAKUMA CSR Report 2020

42

SOCIAL ーSocial Initiativesー
Consumer Issues

Initiatives for 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. Operations comply with the latest

version of both standards (the 2015 versions).
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 of the
product itself, but also to improve the operations and quality
as well as each individualʼs ability to create a good plant ineach process from planning up to delivery (sales, planning,
design, procurement, manufacture, construction, andmanagement).

Quality Policy
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.

Customer satisfaction survey

Customer satisfaction survey process

Decide where to conduct the questionnaire survey
Takuma has conducted an annual customer satisfaction survey since
FY2007 to solicit the views of customers concerning products we havedelivered as well as the Takuma employees they worked with. We use that
Conduct the questionnaire survey
information to improve quality and service.
First, we administer questionnaires targeting customers who hadconstruction work done by asking them to assess the overall experience after
Investigate the questionnaire results
the work is completed, including the nature of the work performed, suitability
Analyze problem factors and investigate
recurrence prevention countermeasuresof delivered equipment, and the level of service provided by Takuma staff.
(if results are lower than our standard)
Next, the QM Committee calculates a score based on the survey results asAnalyze praiseworthy factors
well as a report from the responsible department. The committee then(particularly for praiseworthy aspects)
analyzes the resulting data.
If there are any issues, for example if the score fails to meet our standards
or if there are individual areas where the customer was dissatisﬁed, the QM
Apply recurrence prevention measures andCommittee analyzes the cause of the problems based on interviews with thepraiseworthy factors across the organization
department in question and considers preventive measures. 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 horizontally acrossFollow up on results
involved departments at the company.
For customers targeted for problem analysis and consideration of
preventive measures based on the survey results, we also conduct a follow-up
survey to discern whether those measures were reliably implemented and whether their level of satisfaction has indeed improved.
With scores averaging higher than 80 points for each of the last 10 years, the questionnaire demonstrates the effectiveness of
our initiatives.
In this way, we work to improve product and plant quality so that all customers are satisﬁed.
(Points)

Number of surveys

Average score

Permits and registrations(Surveys)

100

40
●

90

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)

85.5 85.9 85.8

Organizational initiatives for improving quality

As an organizational initiative thatʼs designed to boost productquality, we have each department establish quality targets at the
beginning of the year and then provide regular reports (twice ayear) 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 by carryingout an internal quality audit of each department to verify thestatus of quality management system operation.
Internal quality audits are carried out regularly by employees
who have been certiﬁed as internal auditors after completinginternal quality auditor training seminars offered by instructors
from an outside organization. At the training seminars, employees
master content ranging from basic knowledge about ISO 9001 to
speciﬁc methods for conducting internal audits.

43

TAKUMA CSR Report 2020

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
for use in regular assessments, and we are reviewing thetargets 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 productis 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.

30

80

70

●

85.6 86.3 86.1
36

25

●

86.8

82.3

●

Speciﬁc initiatives for improving quality

87.7 88.2

16

60

18

27

27

27

●

28

20

23
19

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

(FY)

10

Consumer Issues

Priority items

Head Ofﬁce, branch ofﬁces and other business ofﬁces

Construction license (Minister of Land, Infrastructure, Transport andTourism license, Special 27-6129, Special 29-6129)
Construction consultant registration (Minister of Land, Infrastructure,
Transport and Tourism registration, Construction 01-10202)
First-class architect ofﬁce registration (01A02903)
ISO 9001 quality management system certiﬁcation

Harima Factory

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

Questionnaire average score (out of 100 possible points)

ISO 9001

Message

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

JQA-EM0313

14001 certiﬁcation
ISO 14001 ISO
Harima Factory

Mitsuo Ishiguro
Section 2, Quality Control Dept.
Construction Center
Takuma Co., Ltd.

Takumaʼs quality control team works to supply customers with safe, secure plants by means of reliable
product testing and a rugged commissioning process.
Commissioning marks the ﬁrst time a newly built plant will operate, so we strive to check safety andoperate the facility with care as we adjust combustion and operation and verify that the plant provides theperformance and operational characteristics required by the customer.
To ensure that the customer will be able to enjoy the beneﬁts of plant operation with peace of mind
over the long term once it has been transferred, we solicit feedback from the customer, compile operating
documentation that uses photographs and explanatory ﬁgures to ensure content is easily understood,
provide an explanation to the customer, and then operate, or provide guidance on, the plant.
We carry out commissioning work at sites day in and day out with the goal of supplying customers withplants that satisfy them.

TAKUMA CSR Report 2020

44

SOCIAL ーSocial Initiativesー

SOCIAL ーSocial Initiativesー

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.

Anan High Trust Co., Ltd.
At Ecopark-Anan, which we operate on a contract basis, we use the adjacentenvironmental learning facility to hold hands-on classes for parents and children andhandicraft events on a regular basis.
More than 200 people attended a Summer Vacation Eco Event in July 2019, where
they took tours of the plant, made drink coasters, and enjoyed other events.

Kurume High Trust Co., Ltd.

Participation in the "Osaka Marathon ʻCleanupʼ Campaign"

Blood donation campaign

Children viewing artiﬁcial ﬁreﬂy habitats

Suwako High Trust Co., Ltd.

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 provide information about fundraising activities during a campaign that lasts from June
through August, including by displaying WFP posters at the entrances to company buildings andin cafeterias and run articles in our company newsletter. The campaign serves both to increase
employee interest in the worldʼs food problems and to collect donations to address them.

Contributions to NPOs

Suwa Lakeside Clean Center (familiarly known as “eco Poppo”), which we operate
on a contract basis, held eco Poppo Fellowship Festivals in July and November 2019 tocommunicate to area residents the role and importance of the facility along withinformation about the status of waste treatment and other aspects of its operation. The
events were held in concert with the Neighborhood of the Lake Administrative Affairs
Association.
The festivals were a success, drawing numerous visitors who enjoyed reports on
facility operations, a prize drawing, fair stalls, and a chance to take a commemorative
photograph with the facilityʼs mascot.

Iwate-Kenpoku Clean Co., Ltd.
In FY2018, Iwate-Kenpoku Clean entered into an “Agreement on Providing a Shelter andWide-area Temporary-stay Facility” with the Village of Kunohe, where the company islocated. Under the agreement, the company gives something back to the community byproviding facilities it owns for use as shelters in the event of a natural disaster or otheremergency.
The facility also participates in an annual fall festival̶the Kunohe Industry, Art, andCulture Festival̶that combines local industry, art, and culture. During FY2019, the event
attracted local residents of all ages, who enjoyed a variety of activities, including quizzes onenvironmental topics, “ﬁshing” for candy, and building models of an incinerator.

Takuma supports blood donation activities through the Japanese Red Cross Society.
During FY2019, we held a blood drive at the Harima Factory. Many employees
participated on an ongoing basis, and some even received an award commemorating their
10th donation. We plan to continue this activity in the future.

WFP fundraising activities

Experiencing waterway management(catching spirogyra)

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

Donating unused calendars
Each year, Takuma donates unused calendars to a non-proﬁt organization. The proceeds from selling the calendars at acharity calendar market sponsored by the NPO Nippon Volunteer Network Active in Disasters are used to provide aid forvictims 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 withdisabilities.

Publications
Quiz on environmental topics

Incinerator model

TAKUMA CSR Report 2020

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 FY2019, 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 willcontinue this initiative.

Participation in the Community / Contribution to Society

Kurume Municipal Environmental Interchange Plaza at Miyanojin Clean Center, which
we operate on a contract basis, features the Miyanojin “Manabino” Biotope, a study facility
designed around the theme of a natural environment that allows the appealing spaces of
Kurume to be passed down to the next generation.
The biotope provides an environment inhabited by a variety of living organisms that live
and reproduce in the watershedʼs rivers and waterways and in the surrounding region.
During FY2019, the facility held a learning event about artiﬁcial methods for keeping
insects entitled “Mission: Keeping Fireﬂies!” in May with the goal of enabling ﬁreﬂies ofthe species Luciola cruciata to live at the biotope.
Many parents brought their children to the event, where they enjoyed a talk by an expert
about methods for keeping ﬁreﬂies, viewed artiﬁcial ﬁreﬂy habitats, and experienced
waterway management at the biotope (by catching spirogyra).

45

Takuma Group coordinated cleanup activities

In November 2019, 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.

Children making drink coasters

Report on facility operations

This page introduces some examples of Takumaʼs community service activities.

Publication of the Takuma Technical Review
We publish the Takuma Technical Review twice a year to introduce technologies that Takuma
has developed.
During FY2019, topics included explaining transitions in NOx reduction technology for waste
incineration, reporting on the operation of plant equipment, reporting on overseas tours, andintroducing new products. Abstracts are available on Takumaʼs website.
[Takuma top page > Technical Information > Technical Review]https://www.takuma.co.jp/english/gijutu/gihou.html
TAKUMA CSR Report 2020

46

G OVERNANCE ーGovernance InitiativesーInternal Control

Corporate GovernanceCorporate Governance●

Basic policy on corporate governanceIn order to safeguard and steadily increase Takumaʼs
corporate value over the long term, it is essential not only
to ensure the development of the companyʼs businesses,
but also to clearly deﬁne governance in corporate
operations-that is, to ensure that shareholdersʼ oversight ofoperations is carried out appropriately and that ofﬁcers●

Board of Directors●

As of June 25, 2020, the Board of Directors was comprised of six
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 make decisions
about important issues related to business management and issues
established by law and ordinances, as well as to oversee theexecution of the directorsʼ duties.

●

Directors

Including the following
outside directors:

11 (10 men and 1 woman)

4 (3 men and 1 woman)

Executive Ofﬁcers

Reporting

Auditing of accounts

ReportingAccounting
Auditors

Reporting

Cooperation
Assistance

Reporting andGeneralstatement of views
Meetingof
Shareholders Appointment

Audit &
Supervisory
Committeeʼs
Ofﬁce

Audit &
Supervisory
Committee

Cooperation

Nominating &Committee

Appointment
and removal●

Audit & Supervisory Committeeʼs Ofﬁce

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

Nominating & Compensation Advisory Committee

To augment the above structures, we have established a
Nominating & Compensation 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 theselection of candidates for director and executive ofﬁcer positions
and in the determination of the compensation and other terms so
as to enhance the oversight function of the Board of Directors.

Variouscommittees

Reporting

Auditing andCompensation
supervision
Advisory
Recommendations

Board ofDirectors

An Audit & Supervisory Committee that consists of ﬁve members,of whom four are outside directors, is responsible for accounting andoperational audits. Members of the committee attend important
meetings, including those of the Board of Directors and theCommittee of Executive Ofﬁcers, and they strive to understand andobserve the status of business execution in a timely and appropriatemanner. Drawing on their professional background and experience,
they express their opinions as necessary from an objective
perspective, and they conduct strict auditing of the businessexecution performed by the directors. To facilitate the effectivenessof audits carried out by the Audit & Supervisory Committee, therepresentative director holds regular meetings with committee
members to ensure good communication.

Consultations

Discussion
and reporting

Selection, dismissal, and supervision

TAKUMA CSR Report 2020●

Basic approach●

Led by the department in charge of compliance and CSR
promotion (CSR Department), Takuma aims at encouraging
proper activities through the Compliance & CSR Promotion
Organization which was installed for the purpose of
enabling compliance and CSR to concretely permeate
company-wide through an in-house organization.
This organization is composed of a chairman (theExecutive Manager of the Compliance & CSR Promotion
Division), a secretariat (positioned in the CSR Department),
and an executing organization in 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 areappointed as Compliance and CSR Promoters. The
meetings conducted within this mechanism include regularmeetings and departmental meetings.

Compliance& CSR
Promotion
Division

Reporting

ReportingPresident

Observing and guidanceCommittee
of Executive Discussion of and reportingon important matters
Representative Ofﬁcers(Deliberation
Directorof importantIssuance of instructions andmatters)

communication of information

Regular meetings are held once a year. The person in charge ofpromotion receives reports on the status of compliance and CSR
promotion company-wide, as well as on the status of theimplementation of compliance and CSR promotion education for the
past year, etc., and participants deliberate on a promotion plan for thecurrent ﬁscal year.
●

Departmental meetings

Promotion members convene departmental meetings once a quarter,with educational training aiming at the permeation of compliance andCSR in each department. After departmental meetings, promotion
members implement compliance and CSR promotion education in theirrespective departments using training materials or in-house
educational materials and report the results 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 thoroughcompliance and risk management throughout the Group. During
FY2019, 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

Regular meetings

Board of Directors

ReportingInternal auditing

Divisionsandcenters

Chairman (Executive Manager of the Compliance & CSR Promotion Division)
Secretariat (CSR Department)
Divisions and centers
Department

Execution of
Executive responsibilities

Ofﬁcers

Takuma Group
Coordinating Committee forCompliance & CSR Promotion

Compliance & CSR Promotion Administrator (division or center manager)

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

Appointment
and removal

Corporate governance structure

47

Compliance & CSR Promotion Structure

Education, instructions, and reporting

Auditing

and removal

Reporting

Audit & Supervisory Committee

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 toreport on and prevent misstatements in our ﬁnancial
reporting, is based on the Financial Instruments andExchange Act. This internal control on ﬁnancial reportingfor the Group has resulted in reports that indicate thissystem has been effective.
In this way, we will continue to work in the future toensure thorough compliance while carrying out businessproperly and efﬁciently while also deepening risk
management.

Corporate 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
who are entrusted with the responsibility of executing ourbusiness activities. As of June 25, 2020, there were 16 executiveofﬁcers (including those who also serve as directors). Moreover,
we have also established a Committee of Executive Ofﬁcers, which
is chaired by the president/chief executive ofﬁcer, as anorganization that deliberates matters that are brought up at
meetings of the Board of Directors and other important issues
related to the execution of our business activities. This committee
communicates and provides direction about items decided by the
Board of Directors and other important items related to the
execution of our business activities appropriately to the divisions
that are to execute them.

Appointment
and removal

carry out their operational responsibilities by means of aprocess that is clear, rational, efﬁcient, and legallycompliant. For that reason, we believe that understanding
the Corporate Governance Code and putting it into practicein an autonomous and systematic manner are top-priority
management issues.

Takuma has adopted a Basic Policy for Establishment ofan Internal Control System (the full text is available on our
website) in accordance with the Companies Act. We
continue to review and improve this policy in response tochanging circumstances.
Working towards thorough compliance, Takuma built acompliance promotion organization in FY2006 in order tocontinuously implement enlightenment and educational
activities that make corporate ethics, related laws andordinances, and internal rules fully understood. To control
the danger of loss, we have also prepared a “RiskManagement Code” that determines the person in charge ofeach risk, and we set up our risk management organizationaccording to that Code. When the unexpected occurs,(As of June 25, 2020)

Compliance & CSR promotion structure

TAKUMA CSR Report 2020

48

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

Risk Management Structure
Takuma follows a “Risk Management Policy” thatconnects company-wide risks and separately classiﬁes theminto 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.
Group companies also work to develop and strengthen
approaches to risk management through the 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 and partnercompanies to continue business operations.
３．Earn the trust of numerous stakeholders, including employees, their families, shareholders, and nearby residents, andfulﬁll social needs by continuing business operations.

【Disaster rule system diagram】

Risk Management Policy

Risk Management Policy
Risk Management Code［Basic purpose of risk management］

Crisis Management CodeRisk 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.

Overseas Risk Management CodeDisaster Prevention Management CodeFire Prevention Plan

Earthquake Countermeasure Manual［Risk management action guidelines］

Storm and Flood Damage Countermeasure Manual

１．The president and CEO is responsible for risk management at Takuma.

Novel Inﬂuenza Countermeasure Manual

２．All ofﬁcers and employees participate in risk management activities.

Safety Conﬁrmation System Administration Rules

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.

Reporting

Request for decision/
reportingPresident
Committee of
Executive Ofﬁcers

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

Request for decision/
reporting

Evaluation

Report oninternal control
evaluation
concerning
ﬁnancial
reporting

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

Reporting

Reporting

Risk Management Department

Internal Audit
Department

Planning/
reportingPotential risk

Eachdivision

Evaluation

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

Risk management structure

TAKUMA CSR Report 2020

Actualized riskGroupcompanies

Risks
concerning
corporate
activities

Financialreportingrisks

BCP activation
Business continuity plan (BCP)

Disaster prevention exercises
On November 19, group and partner companies joined head ofﬁce personnel inparticipating in disaster prevention exercises, which included drills to test readiness fora Nankai Trough earthquake and tsunami, ﬁreﬁghting practice, and an evacuation. The
head ofﬁce is equipped to serve as a temporary shelter in the event of a tsunami orother emergency, and the exercises included practice for providing evacuation guidance
to residents. On October 9, Takumaʼs company ﬁre brigade competed in the indoor ﬁrehydrant category of a ﬁreﬁghting technique competition organized by the Amagasaki
City Bouka Kyokai (Fire Protection Association) to maintain and improve ﬁreﬁghting
skills. The event offered the brigade an opportunity to improve its ability to respond in
the event of a ﬁre. We also held two safety conﬁrmation exercises using a systemdeveloped speciﬁcally for that purpose.
With regard to the maintenance and restoration of information systems, which is the
top priority of the Companyʼs business continuity plan (BCP), we carried out exercises
envisioning an earthquake and subsequent power outage.
These exercises and related activities served to verify that participants understand theapplicable rules and procedures and that they have the necessary knowledge and skills.
We will apply the results to future educational exercises and countermeasures as wework to improve our ability to respond in the event of a crisis.

IR Activities
In keeping with the “Takuma Group Code of Conduct,” weprovide our shareholders and investors with accurate
corporate information in a timely and fair manner. As a partof this, we provide notiﬁcations on the convening ofGeneral Meetings of Shareholders, balance sheet
information, timely disclosure information, marketablesecurities 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

Individuals, others:
7,540,000 shares
9.1％

A disaster prevention exercise

Corporate Governance

Board ofDirectors

49* Based on Fire Service Act
enforcement regulations

A response exercise

Treasury stock:1,857,000 shares
2.2％

Corporations in Japan:
15,632,000 shares
18.8％

Foreign individuals:
21,636,000 shares
26.1％

Financial institutions
and stock brokerages:
36,332,000 shares
43.8％

Distribution by shareholder type (as of March 31, 2020)

TAKUMA CSR Report 202050

Corporate Governance
Executive Proﬁles: Directors

Messages from New Outside Directors
Yoshiaki Ito

Outside Director(Audit & Supervisory Committee Member)

I am truly honored to have been chosen to serve as an outside director (Audit &Supervisory Committee Member) at Takuma. Over some 30 years as a certiﬁed public
accountant, I was involved with corporate accounting audits at a major auditor. I was
responsible for audits of companies in an array of industries, including manufacturers,
real-estate companies, and service businesses. At the same time, I also gained experience
providing operational support for companies preparing for their IPO. I look forward to
taking advantage of the auditing and corporate support experience I have gained to date inorder to help Takuma further increase its corporate value.
Takuma has consistently traveled the path of a pioneer in the boiler industry since its
founding, and more recently it has advanced into the environmental protection ﬁeld whileaccommodating changes in society.
In 2015, the Corporate Governance Code was drawn up to offer publicly listedcompanies a blueprint for initiatives for securing sustained growth. If you examine
Takumaʼs ﬁnancial statements and related materials, you will be left with the impressionthat the companyʼs corporate governance initiatives are extremely robust in terms of theirstructures and mechanisms compared to those of other companies. You can infer thatthese structures are being implemented at a high level of sophistication. As an outside
director, I am committed to helping maintain a high level of governance, which is the mostimportant priority of management, by fulﬁlling my positionʼs oversight function withregard to operational execution from the objective perspective of stakeholders, particularly
shareholders, after I develop a sufﬁciently deep understanding of the Companyʼsoperations.

Tetsuya Kaneko

Outside Director(Audit & Supervisory Committee Member)

7

8

2

10

11

6

9

1

4
2

3

5
3

4
5
6

51

TAKUMA CSR Report 2020

Representative Director
President and Chief
Executive Ofﬁcer

Takaaki Kato

Director
Chairman Executive Ofﬁcer

Kengo Numata

Director
Executive Vice President

Tsuyohito Nishiyama
Director
Senior Managing
Executive Ofﬁcer

Hideki Takeguchi
Director
Senior Managing
Executive Ofﬁcer

Koji Tanaka
Director
Executive Ofﬁcer

Yasushi Enomoto

7

Director(Audit & Supervisory
Committee Member)

8

Outside Director(Audit & Supervisory
Committee Member)

9

Outside Director(Audit & Supervisory
Committee Member)

Osamu Iwahashi

Tomomi Fujita

Yoshiaki Ito

Director
10 Outside(Audit & Supervisory

Committee Member)

11

Tetsuya Kaneko

Outside Director(Audit & Supervisory
Committee Member)

Corporate Governance1

Hiroaki Nanjo

During some 30 years as a banker, I gained experience in a number of areas, including
domestic and international facility operations and oversight, international monetary
exchange, human resources, and consulting on companies looking to enter overseas
markets. After that, I began working for a trading company, where I played a managementrole for eight years as the executive in charge of a department that provided general
support in areas such as reviews, legal affairs, distribution, insurance, and IT planning.
Today, I serve as the president of a real-estate holding company.
I look forward to taking advantage of the knowledge I gained during my years as abanker and trading company executive to contribute to the growth of Takuma as a leading
company in the environmental and energy ﬁelds.
Shibusawa Eiichi, whose face is slated to appear on the new ¥10,000 note, started many
companies during the Meiji and Taisho periods, and he also wrote Analects of Confucius andthe Abacus more than 100 years ago to explain the need for both ethics and proﬁt. The

spirit of that philosophy lives on in the Sustainable Development Goals (SDGs) that theinternational community is pursuing today, and I believe it will only become more
important̶essential, even̶as Takuma looks to help achieve the SDGs through its
technological capabilities and expertise. It is my fervent hope that Takuma will move totake those capabilities to a new level so that it can meet these rising expectations.
I am truly honored to have been chosen to serve as an outside director (Audit &Supervisory Committee Member) of a company that has developed businesses in responseto the needs of its times and in doing so has led its industry. I look forward to taking
advantage of the broad knowledge Iʼve gained in Japan and overseas to date to live up to
the expectations of my role once I have developed a sufﬁciently good understanding of thecompanyʼs businesses.

TAKUMA CSR Report 2020

52

G OVERNANCE ーGovernance Initiativesー
Corporate GovernanceFair Business Practices

Executives' Proﬁles: Executive Ofﬁcers

Compliance Measures●

Takashi Manabe

Ryoji Tani

Norito Uchiyama

Mitsuaki Adachi

Managing Executive
OfﬁcerManaging Executive
OfﬁcerManaging Executive
OfﬁcerInitiatives to ensure compliance with
the Antimonopoly Act

Towards ensuring permanent compliance with the
Antimonopoly Act, Takuma enacted “Regulations
Concerning Management of the Pledge of Antimonopoly
Act Compliance,” which provides for the submission of awritten oath in regard to observing the Antimonopoly Act.
“Rules on Controlling Contact with Competitorsʼ Sales
Departments, etc.,” deﬁnes the procedure for an employee
when interacting with the sales department, etc., of acompetitor and speciﬁes that an application should bemade to and an approval should be obtained from the
afﬁliated division or center manager in advance to ensure
fair business contact.

●

Holding training sessions about the Antimonopoly Act

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

Introducing a Legislation Information Service

In order to allow its employees to gain a continuous
grasp of the latest changes to laws and ordinances, Takuma
introduced a Legislation Information Service. In thissystem, legislation alerts highlighting revisions to, andabolition of, laws and ordinances are sent by e-mail inadvance 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 systemlets users search for legal precedents and public comments
to facilitate an even greater understanding of relevant laws
and ordinances.

Managing Executive
OfﬁcerInternal Reporting System

Akira Taguchi
Managing Executive
Ofﬁcer

Hidetoshi Tomita
Executive Ofﬁcer

because he or she 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 hotlines andregularly publicize the system. Although awareness of thissystem exceeded 90% according to the results of the
FY2019 CSR awareness survey, some respondents indicatedthat they were unaware of the system or uninterested inutilizing it, suggesting that issues remain for the reporting
system.

Corporate Governance / Fair Business Practices

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 hotlines are set up at our Compliance & CSR
Promotion Division and at an outside law ofﬁce, as well as a
dedicated outside report hotline 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

Internal reporting system

Persons seeking consultation or making reports
Response

Norio Maeda
Executive Ofﬁcer

Kunio Hamada
Executive Ofﬁcer

Consultation
or report

Outside reporting hotline(Including via anonymous
e-mail if so desired)

Law ofﬁce

Employees who become aware of a legal
violation, improper conduct, or other issue thatwould be problematic from a compliancestandpoint must work to help rectify the
problem and prevent future recurrences byreporting it to the Companyʼs hotline, regardlessof their own involvement.
Employees reporting information to the
hotline will not be subjected to disadvantageous
treatment simply because they ﬁled a report.
*Please see the “Internal Reporting Code.”

Hotlines (help lines)
Internal reporting hotline Compliance & CSR Promotion
Division CSR Department

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

Keiji Nakamura
Executive Ofﬁcer

53

TAKUMA CSR Report 2020

Hiroshi Oishi

・・・＠・・・
Outside reporting hotline Law ofﬁce
・・・＠・・・
Outside reporting hotline Specialized company
・・・＠・・・

Compliance Card

Executive Ofﬁcer

TAKUMA CSR Report 2020

54

Fair Business Practices●

Internal CSR lecture for executives

Date: December 25, 2019
Lecture topic: Understanding and Using the Antimonopoly Act in the Future

Compliance & CSR Promotion Education
Takuma offers compliance and CSR promotion education
through the Compliance & CSR Promotion Organization(see page 48), which was established in order to spreadawareness of compliance and CSR issues among employees.
During FY2019, we implemented education focusing on
compliance and CSR promotion in four separate stages (seebelow) in keeping with our policy of pursuing a sustained
and thorough program of spreading and improving

compliance and CSR awareness and risk management. Thiseffort, through which we sought to live up to societyʼs
requirements and expectations, while taking into accountinternal circumstances and the characteristics of groupcompanies, was based on the Compliance & CSR Promotion
Divisionʼs medium-term policy of continuing to practicecompliance-focused management in accordance with the12th Medium-Term Management Plan.

●

1st term : Insider trading●

2nd term : Training on compliance with Japanʼs Antimonopoly Act●

3rd term : Overview of security export controls
Takumaʼs CSR comprehension test●

4th term : Preventing power harassment
Forward-looking CSR activities, CSR issues and an action
program

Lecturer:Mr. Kentaro Hirayama
Attorney at Law and Representative of Hirayama Law Ofﬁces
Associate Professor (Economic Law), Kyushu University Faculty of Law

CSR Awareness Survey
We have been conducting a CSR Awareness Survey since
FY2008 in order to quantitatively assess the level ofcompliance and CSR awareness along with the effectivenessof related promotional and educational efforts. The resultsof this survey are used when summarizing the activities ofeach ﬁscal year and in formulating the upcoming yearʼsaction plan, as well as in future compliance and CSR
promotion activities. The survey was expanded to include
group companies in FY2013.
We actively use survey results in our activities, forexample by offering additional education in areas thatreceived lower scores than in the previous survey. FY2019,
responses indicated that 975 (of 993) employees are
conducting themselves in accordance with standards suchas the companyʼs Management Principles and the Takuma
Group Code of Conduct, indicating that awareness of theimportance of compliance and CSR have spread widely
among employees.
We will continue to offer this survey and use its results toimprove compliance and CSR promotion education on an
ongoing basis.

Material Procurement Policy
Number of sessions per year: 4 (May, August, November, and January)
Number of participating departments: 45
Total number of attendees: 4,315
We invited an outside expert to give lectures and training in August 2019 (2nd term) and January 2020 (4th term).
●

2nd term lecture“Training on Compliance with Japanʼs
Antimonopoly Act: Avoiding Involvement with
Bid-rigging and Cartels”●

4th term training session“Preventing Power Harassment: From theStandpoint of Workplace Mental Health”
Ms. Miyuki Matsuoka
Certiﬁed public psychologist/Clinical psychologist/Industrial counselor
H2 Consultant Co., Ltd.

A variety of educational methods

We use a variety of methods to foster a high level of awareness of complianceand CSR, including CSR education and discussions implemented directly bypromoters (department managers) as well as computer-based e-learning and the
pursuit of CSR goals and action programs throughout the year at each department.
Since 2006, we also have been distributing a Compliance Manual that includes
an explanation of the rules and standards of conduct as well as an FAQ to all
employees in accordance with the Takuma Group Ethics Charter and the Takuma
Group Code of Conduct. This manual is utilized in the course of daily operations
and departmental training.

55

TAKUMA CSR Report 2020

TOPICS

Fair Business Practices

Mr. Yuki Takei
Attorney at Law
Midosuji Legal Profession Corporation●

Our Purchasing Department carries out procurement
activity in accordance with its Material Procurement Policy.
【Material Procurement Policy】
We provide fair opportunities for all suppliers,
1．Treat all candidates fairly when selecting a supplier.
irrespective of nationality, company size, or transaction
history. Suppliers are selected based on our comprehensive
2．Strive to discover new manufacturers.
evaluation of their reliability and safeness in terms of
3．Strictly control conﬁdential information.
quality, price, delivery, etc., as well as their abilities in
4．Strive to acquire new and pertinent information.
technological development and supply capabilities.
5．Promote green procurement.
Long-term stable transactions with dependable suppliers
6．Comply with laws and ordinances related to businessresult in improved product reliability and greater corporate
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 aswell as social norms, we strictly control and maintain any
conﬁdential information that we obtain through our＊VA and VE : Value Analysis and Value Engineeringbusiness 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)

President Nanjo visits worksites involved in plant operation

From September to October 2019, President Nanjo visited nine worksites thatare responsible for the long-term operation of waste treatment plants andbiomass power plants (including operational management and maintenance).
Comprehensive operation contracts for plants have grown more common inrecent years, and high-quality after-sales service is becoming more important
than in the past. Through these visits, President Nanjo shared with workers theGroupʼs continued commitment to come together to provide high-quality
after-sales service that aligns with customer and regional needs.

TAKUMA CSR Report 202056

Financial Data

¥ 113,088¥ 116,309¥ 118,199¥ 121,951¥ 134,454$ 1,235,453
50,000

¥

8,223

¥

9,189

¥

10,974¥

10,030¥11,604

¥

9,600

$

Ordinary proﬁt

¥

9,116

¥

9,646

¥

11,606¥

10,670¥12,334¥

10,301$

94,649Proﬁt attributable toowners of parent

¥

8,030

¥

7,817

¥

8,551

¥

7,847

¥

8,854

¥

7,445

$

68,413Comprehensive income

¥

9,398

7,149

9,937

¥

Total assets¥ 123,127¥ 132,614

Net assets per share（JPY or USD）¥

631.53¥708.18¥815.77

Net income per share（JPY or USD）

¥

97.12

¥

94.55

¥

103.43¥58,809¥Net assets

Diluted net income per share（JPY or USD）

52,516¥¥67,727¥ 140,201¥¥

10,17776,726¥¥

7,325
83,088¥¥5,881
85,040$$54,041
781,403¥ 151,489¥ 155,989¥ 163,498$ 1,502,329¥

924.25¥ 1,000.34¥ 1,043.15

$

9.59

¥

94.93

¥

¥

90.36

$

0.83

107.10

-

-

-

-

-

-

-

Capital adequacy ratio (%)

42.4

44.1

48.1

50.4

53.0

51.8

51.8

Return on equity(%)

16.8

14.1

13.6

10.9

11.1

8.9

8.9

0
Fiscal year

●

(

111th

112th

113th

114th

9.7
¥

Cash ﬂows frominvesting activities¥

Cash ﬂows fromﬁnancing activities¥ (3,707)

End-of-year balance of
cash and cash equivalents¥

Number of employees

21,727(160)

45,008
3,266

¥
¥

6,728
(445)

¥ (2,900)¥

48,335
3,366

10.5
¥
¥

9,590
143

¥ (1,787)¥

57,132
3,447

12.3
¥
¥

5,141
(328)

¥ (1,670)¥

60,283
3,609¥

10,817¥ (1,382)¥ (9,120)¥

61,027
3,619

13.3

13.3

12.3

¥ (11,733)
¥

(202)

¥ (4,350)¥

44,7533,816$ (107,806)$(1,858)116th

0
Fiscal year

●

)

111th

114th

115th

134,454

113th

116th

Net sales composition ratios (FY2019)
Domestic Environment and Energy Business
Overseas Environment and Energy Business

20,000

Package Boiler Business

5.8%

Equipment and Systems Business
15,00010,0005,000

0Fiscal year

111th

112th

113th

114th

0.9%

13.2%

80.1%
115th

116th

Trend by Segment(Millions of yen)Orders received

Sales amountOperating income

Backlog

Domestic Environment andEnergy Business

123,154

108,124

10,619337,322

Overseas Environment andEnergy Business

1,351

1,143

（202）

733

Package Boiler Business

17,925

17,869966

3,928

Equipment and Systems Business

6,790

7,840

384

3,453

Sub-total

149,221

134,976

11,767345,437

（390）

（522）

（2,167）（122）

148,830

134,4549,600

345,315

Financial Data

Cash ﬂows fromoperating activities

10.7

115th

Operating income

Millionsof yenSegment
Price-to-earnings ratio

112th

88,215

8,223

Operating income

50,000121,951¥ 103,875

100,000

118,199

Net sales

113,763

100,000

116,309

March 2020

150,000

113,088

March 2020

148,830

March 2019

)

9,600

March 2018

179,829

March 2017

150,000

11,604

March 2016

Net sales

Millionsof yen200,000
177,116

of
of
of
of
of
of
of
( Millions) ( Millions) ( Millions) ( Millions) ( Millions) ( Millions) ( Thousands
yen
yen
yen
yen
yen
yen
U.S. dollars )March 2015(

200,000

116th

116th

10,030115th

191,026

114th)

10,974113th

Millionsof yen●99,919End of ﬁscal year

112th

(

Value of orders received

9,189

Fiscal year

111th

●

103,875

Trend in Principal Management Indicators and Other Financial Data

$ (39,971)$

411,224
3,816
Adjustment

Note:
1. U.S. dollar amounts are shown solely for the convenience of readers and are translated at the rate of ¥108.83 to U.S.$1.00,
the exchange rate prevailing at March 31, 2020.

Total

2. Ordinary income is a measure of accounting proﬁt that equals operating income plus other income minus other expenses,
except for extraordinary items under Japanese GAAP.

57

TAKUMA CSR Report 2020

TAKUMA CSR Report 202058

Financial Data
Consolidated Balance Sheets
TAKUMA CO., LTD. and Consolidated Subsidiaries
As of March 31, 2020 and 2019
Thousands of
U.S. dollars

Millions of yen
ASSETS

2020

LIABILITIES AND NET ASSETS

2020

2019

¥

46,145¥61,769$424,01573,03449,046

671,083

556

764

5,104

785

281

7,216

and afﬁliated companies

Less allowance for doubtful accounts

(20)

(28)

(183)

Other

74,35550,063

683,220

Total

Inventories

4,681

4,356

43,014

Other

1,787

1,732

16,414

126,968

117,920

1,166,663

Total current assets

2,497

3,013

22,945

Buildings and structures

11,955

11,905

109,856

Machinery, equipment, lease assets and construction in progress

10,114

8,969

92,932Less accumulated depreciation
Total property, plant and equipment

$

4,319
735

43,70837,587

401,622334

2,761
13,72145,502

39,148418,104

Accrued income taxes

1,673

3,628

15,374

Advances received

10,0299,798

92,155

165

149

1,516

3,401

1,739

31,251

Allowance for guarantees on completed work

Other
Total current liabilities

833

999

7,656

5,429

6,023

49,881

67,582

62,246620,991

2,409

24,56623,887

225,733

Long-term liabilities:(16,146)(15,593)(148,360)

Long-term debt

262

342

8,420

8,294

77,373

Allowance for directorsʼ and executive ofﬁcersʼ retirement beneﬁts

220

185

2,022

10,111

9,746

92,906

Investments and other assets:

283

382

2,598

Total long-term liabilities

10,876

10,65599,935

Total liabilities

78,45872,901

720,926

13,367

13,367

122,829

Other
13,815

15,138

126,945

Investments in:Contingent liabilities

Unconsolidated subsidiaries
and afﬁliated companies

2,112

4,163

19,403

Other

5,433

5,460

49,923

Less allowance for doubtful accounts

(109)

(109)

(998)

Total

7,436

9,514

68,328Deferred tax assets

4,810

59,993

54

-

494

Other

276

313

2,533

28,11029,775258,293

Net assets:
Common stock
Authorized: 321,840,000 shares
Issued: 83,000,000 shares
Capital surplus

3,818

3,768

35,084Retained earnings

66,24460,866608,688

Treasury stock, at cost

(2,178)(235)(20,017)

Total shareholders' equity

81,251

77,766

746,584

Unrealized gains on securities

3,764

5,390

34,5904835Foreign currency translation adjustments

(3)

(4)

(24)

Remeasurements of deﬁned beneﬁt plans

Financial Data

6,529

Net deﬁned beneﬁt asset
Total investments and other assets

645
117

1,227

Net deﬁned beneﬁt liability
Investment securities

¥

80

301

Provision for loss on liquidation of subsidiaries and associates

Land

470

1,493

Allowance for losses on sales contracts
Property, plant and equipment:¥

Unconsolidated subsidiaries

Other
Total

2020

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

2020

Current liabilities:

Current assets:
Cash and time deposits

Thousands of
U.S. dollars

Millions of yen

1,857,894 shares in 2020 and
331,644 shares in 2019
Total assets¥ 163,498¥ 155,989$ 1,502,329

Deferred gains and losses on hedges

(373)

(463)

(3,431)

Total accumulated other comprehensive income

3,392

4,931

31,170Non-controlling interests in consolidated subsidiaries

397

391

3,649

85,04083,088781,403¥ 163,498¥ 155,989$ 1,502,329

Total net assets
Total liabilities and net assets

59

TAKUMA CSR Report 2020

TAKUMA CSR Report 202060

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, 2020 and 2019

For the years ended March 31, 2020 and 2019
Thousands of
U.S. dollars

Millions of yen
2020
Net sales¥

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

2019

2020

2020

$ 1,235,453

94,491

997,817

25,862

27,460237,636

Unrealized losses on securities

16,26215,856

149,421

Deferred gains and losses on hedges

9,600

11,60488,215¥

Other income (expenses):
Interest and dividend income

485

419

4,459

Interest expense

(17)

(59)

(155)

Gain on sales of investment securities

710

-

6,521

(565)

-

(5,196)

-

(999)

-

Loss on sales of investment securities

(214)

-

(1,965)

Loss on valuation of investment securities

(92)

(155)

(842)

Commitment fee

(29)

(17)

(263)

Loss on disposal of property, plant and equipment

(53)

(58)

(490)

-

(49)

-

222

473

2,044

Settlement package
Provision for loss on liquidation of subsidiaries and associates

Provision for doubtful accounts
Equity in earnings of afﬁliated companies
Other, net
Other income (expenses), net
Income before income taxes

Proﬁt121,951

108,592

134,454

92

(19)

840

539

(464)

4,953

10,139

11,14093,168

Thousands of
U.S. dollars

Millions of yen
¥

2020

2019

7,417

¥

8,952

$

68,152Other comprehensive income：(1,625)(1,772)(14,934)

(5)

58

(41)

Foreign currency translation adjustments

5

(9)

42

Remeasurements of deﬁned beneﬁt plans

89

96

822

Total other comprehensive income
Comprehensive income(1,536)(14,111)(1,627)

¥

5,881

¥

7,325

$

54,041

¥

5,907

¥

7,227

$

54,275Comprehensive income attributed to:
Owners of the parent
Non-controlling interests

(26)

98

(234)

Income taxes:
Current

3,891

4,179

35,756

Deferred(1,169)(1,991)(10,740)

2,722

2,188

25,016

7,417

8,952

68,152

(28)

98

(261)

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

¥

7,445

¥

8,854

68,413Financial Data

Yen$

U.S. dollars

Per share:
Net income
Diluted net income
Cash dividends applicable to the year

61

TAKUMA CSR Report 2020

¥

90.36

¥

107.10

$

0.83

-

-

-

31.00

22.00

0.28

TAKUMA CSR Report 202062

Financial Data
Consolidated Statements of Changes in Net Assets
TAKUMA CO., LTD. and Consolidated Subsidiaries
For the years ended March 31, 2020 and 2019

Commonstock

Capitalsurplus

For the years ended March 31, 2020
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¥ 60,866(235)¥ 77,766

391¥ 83,088

Cash dividends (¥25.00 per share)--(2,068)-(2,068)

-

-

-

-

-

-

(2,068)Proﬁt attributable to owners of parent

-

-

7,446

-

7,446

-

-

-

-

-

-

7,446

Purchase of treasury stock

-

-

-

(2,000)(2,000)

-

-

-

-

-

-

(2,000)

Disposal of treasury shares

-

50

-

57

107

-

-

-

-

-

-

107

Other changes during the year, net

-

-

-

-

-

(1,626)

(4)

1

90

(1,539)6(1,533)

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

3,818¥ 66,244¥ (2,178)¥ 81,251

¥

3,764

¥

4

¥

¥ 13,367

¥

¥

(235)

¥ 69,849

¥

7,161

¥

(46)

¥

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

¥

¥

5,390

¥

8

¥

Millions of yen

(4)

(3)

¥

¥

(463)

¥

4,931

¥

(373)

¥

3,392

¥

397

¥ 85,040

(559)

¥

6,558

¥

Millions of yen

3,768¥ 52,949

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

-

-

-

-

-

(1,771)

54

(6)

96

(1,627)72(1,555)

Balance at the end of current period¥ 13,367

3,768¥ 60,866(235)¥ 77,766

For the years ended March 31, 2020
Balance at the beginning of current period

¥

¥

¥

5,390

¥

8

Thousands of U.S. dollars

¥

2

(4)

¥

¥

(463)

¥

4,931

¥

391

¥ 83,088$

Thousands of U.S. dollars$ 122,829$ 34,625$ 559,274$ (2,165)$ 714,563$ 49,522(38)$ (4,252)$ 45,308

3,590$ 763,461

Cash dividends ($0.23 per share)--(19,000)-(19,000)

-

-

-

-

-

-

(19,000)

Proﬁt attributable to owners of parent--

68,414-

68,414

-

-

-

-

-

-

68,414Purchase of treasury stock

-

-

-

(18,377)(18,377)

-

-

-

-

-

-

(18,377)

Disposal of treasury shares

-

459

-

525

984

-

-

-

-

-

-

984

Other changes during the year, net

-

-

-

-

-

(14,932)

(41)

14

821

(14,138)59(14,079)

Balance at the end of current period$ 122,829$ 35,084$ 608,688$ (20,017)$ 746,584$ 34,590(24)$ (3,431)$ 31,170

3,649$ 781,403

$

$

76

35

$

$

$

Financial Data

63

TAKUMA CSR Report 2020

TAKUMA CSR Report 202064

Financial Data
Consolidated Statements of Cash Flows
TAKUMA CO., LTD. and Consolidated Subsidiaries
For the years ended March 31, 2020 and 2019
Thousands of
U.S. dollars

Millions of yen
2020

2020

2019

Thousands of
U.S. dollars

Millions of yen
2020

2019

2020
(1,608)Cash ﬂows from ﬁnancing activities:

Cash ﬂows from operating activities:

Net increase (decrease) in short-term bank loans(175)(7,030)Adjustments to reconcile income before income taxes

Payment of long-term debt

(117)

(470)

(1,072)to net cash provided by operating activities:

Purchase of treasury stock(2,000)(0)(18,377)

Payment of cash dividends(2,068)(1,571)(19,000)

(24)

(28)

(219)

34

(21)

305

(4,350)(9,120)(39,971)

Income before income taxes

Depreciation
Impairment loss
Loss (gain) on sales of investment securities
Loss (gain) on valuation of investment securities
Increase (decrease) in allowance for bonuses¥

10,139¥

11,140$93,168

917

798

8,426

-

40

-

(496)

7

(4,557)

92

155

842

Dividends paid to non-controlling interests
Other
Net cash used in ﬁnancing activities

183

4

1,683

Increase (decrease) in allowance for losses on sales contracts

1,662

1,367

15,267

Effect of exchange rate changes on cash and cash equivalents

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

(166)

999

(1,523)

Net increase in cash and cash equivalents

Increase (decrease) in net deﬁned beneﬁt liability
Interest and dividend income
Interest expense
Equity in losses (earnings) of afﬁliated companies

494

470

4,539

(485)

(419)

(4,458)

17

59

155

(222)

(473)

(2,044)(23,614)(2,229)(216,984)

Decrease (increase) in inventories

(312)

3

(2,864)

Decrease (increase) in other current assets

(529)

(27)

(4,858)Net increase (decrease) in notes and accounts payable and advance money

6,146

1,865

56,474

Increase (decrease) in other current liabilities

(551)

431

(5,059)211(3,197)

1,935(6,514)

10,993(59,858)

Net decrease (increase) in notes and accounts receivable and advances received

Other
SubtotalInterest and dividend received

563

647

5,175

Interest paid

(19)

(60)

(170)

(5,763)(763)(52,953)(11,733)

10,817(107,806)

Income taxes received (paid)
Net cash provided by operating activities

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

¥

11

(11)

102

(16,274)304(149,533)

61,02760,283560,757-440-

61,027$ 411,224

44,753¥

Cash ﬂows from investing activities:
Net decrease (increase) in time deposits

(650)

(14)

(5,973)Purchase of property, plant and equipment(1,520)(482)(13,967)

508

2

4,666

Purchase of intangible ﬁxed assets

(36)

(51)

(334)

Purchase of investment securities(1,253)(802)(11,513)

Sale of investment securities

2,621

105

24,087

Disbursement for loans receivable

(50)

-

(459)

Collection of loans receivable

140

112

1,284

Other

38

(252)

351

(202)

(1,382)(1,858)Net cash used in investing activities

65

TAKUMA CSR Report 2020

Financial Data

Sale of property, plant and equipment

TAKUMA CSR Report 202066

Outside Expert Opinion
Outside Expert Opinion

Response to the Outside Expert Opinion

Takuma CSR Report 2019 Questionnaire Survey Results
Survey period: July 2019 to June 2020
Number of respondents: 1079

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

Koji Tanaka

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

I basicallyunderstood. I understood.
43%
57%

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

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

I would like to thank Professor Takano of Kansai
University for offering his valuable insights on the CSR
Report 2020.

Somewhatexcessive20%

In compiling this report, we have worked to offer

1．Characteristics of the Takuma CSR Report 2020
The Takuma Group is a key part of the foundation on whichstakeholders an easy-to-understand introduction to a2020 demonstrates the continued evolution of the Companyʼsvariety of activities carried out by the Takuma Group with

programs.

the goal of resolving social issues and increasing corporate

Japanese industry operates and one of Japanʼs leading plantvalue by achieving sustainable growth as well as to theengineering groups, and its continued operation is of critical

Groupʼs 12th Medium-Term Management Plan, throughimportance to society. Consequently, in rendering my opinionof this report I would like to focus particularly on its
characteristics with regard to the concept of sustainability.
The ﬁrst characteristic is the ability to manage operations
based on an understanding of societal issues. For example,

2．Towards further developmentIʼd like to describe some of my expectations toward the
Takuma Groupʼs future CSR management.
The ﬁrst involves studying the value creation process. The

we have focused on inviting involved parties to express theirthoughts on related subjects in their own words.
In “1．Characteristics of the Takuma CSR Report 2020,”
Professor Takano offers valuable insights from theyear 2020 was identiﬁed as a year in which the next long-term

standpoint of business continuity, which the Group takes

vision would be formulated, and I expect to see the Company

very seriously. We will continue to pursue these initiatives

development of biomass power plants and energy from waste

develop a vision that seeks to realize the sustainable society ofin order to realize the Groupʼs sustainable growth.

plants. I believe that these products will continue to earn social

the future by resolving societal issues such as those identiﬁedsupport in the future as companies become the focus ofin the Sustainable Development Goals (SDGs) throughsuggests measures that ought to be pursued as part of CSR

stepped-up scrutiny due to the need to realize a low-carbon

business activities that draw on the Groupʼs strengths, as

management. I am grateful to him for suggesting directions

society.

President Nanjo described in his message at the beginning offor future initiatives. They say that even a journey of athis report.

thousand miles begins with a single step, and we are

The second involves further deepening global compliancefor our operations so that we can realize the Groupʼs newcontains extensive descriptions of programs that are designed

section, the report introduces how the Company is developing

vision.

to ensure employees continue their employment over the longits businesses overseas, and this effort will continue in theterm, including workstyle reforms and work-from-homefuture. One major risk associated with overseas businesses isseriously, and I would request stakeholdersʼ continued

programs. The report notes that President Nanjo visited ninethat Western laws in areas such as bribery and data protection

support and encouragement as we work to practice CSR

worksites that are responsible for plant operation as part of an

extend outside their home jurisdictions. Takuma is pursuing an

management and enhance our CSR Report.

initiative that was presumably conceived to help develop aadvanced series of compliance initiatives at present, but I hopeculture that is characterized by good communication. The

to see those efforts expanded in the future, including with

report also offers a glimpse of managersʼ belief that valuing

regard to the unique risks that face global businesses.

employees helps increase the Companyʼs competitiveness.
The third characteristic is the Companyʼs pursuit of initiatives

35%
30%

Business Summary

14%

CSR Activities for the Future

13%

The Environment

9%Company Outline

8%

Introduction to Group Company Businesses

8%

Human Rights and Labor Practices

6%

Financial Data

5%

Contribution to Society

5%

We value Professor Takanoʼs observations and take themHistory

5%

Outside Expert Opinion

4%

Participation in the Community

4%

Corporate Governance2%

Consumer Issues

2%

Fair Business Practices

1%

0%

10%

20%

30%

40%

50%

60%

sustainability by reassessing and improving its BCP.
I believe that the Takuma Group is carrying out aBusiness Continuity Plan (BCP) by facilitating regular exercises

high-quality program of CSR activities in a serious manner.

simulating a natural disaster. This yearʼs report describes anGoing forward, I expect to see the Company develop further byeffort to increase crisis management capability by holding

contributing to the resolution of societal problems through its

disaster prevention exercises and BCP training with the goal ofcore businesses.

●

Editorial Policy

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

Publisher and Contact for Inquiries

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

Data Collection Period

Outside Expert Opinion

suggested that enhancing risk management structures could

TAKUMA CSR Report 2020

37%

COVID-19 pandemic has become a societal problem, and Iʼdlike to see Takuma treat it as an opportunity to increase

maintaining and restoring information systems.

57%

Message from Top Management

The third involves additional resilience initiatives. The

to improve resilience. In last yearʼs Outside Expert Opinion, I
provide a way to further increase the effectiveness of the(4)Readability

Introduction to Takumaʼs Businesses
Takuma Group 12th Medium-Term
Management Plan − An Overview
Featurecommitted to building an even more resilient foundation

structures. In the “Introduction to Takumaʼs Businesses”

Satisﬁed
50%

Mostlysatisﬁed
31%

Q3 Which items were you interested in? (Select up to three.)In “2. Towards further development,” Professor Takano

that make it easier for employees to work at Takuma. The report

Average18%

Somewhat unsatisfactory 0% / Unsatisfactory 0%
Difﬁcult to read 0%
Somewhat difﬁcult
Averageto read 1%
15%
Average
21%
Satisﬁed
Satisﬁed
Mostly43%
49%
Mostlysatisﬁedsatisﬁed
36%
35%

which we are working to achieve our corporate vision, andrenewable energy through its core businesses, for example the

The second characteristic is a rich selection of content related

Poor 1% / Very bad 0%

Satisﬁed
76%(3)Quality of information

Takuma works to resolve issues such as greenhouse gases andto the development of programs and an organizational culture

67

In this way, I am pleased to see that the Takuma CSR Report(2)Design

Somewhat insufﬁcient 1% / Entirely insufﬁcient 0%
Too much 3%

From April 1, 2019, to March 31, 2020, in principle.
In addition, some activities in FY2020 are included.
●

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

Time of Issue

Current issue: July 2020
Next issue: Scheduled for July 2021
Last issue: July 2019

TAKUMA CSR Report 202068

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Website: https://www.takuma.co.jp/english/

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