3 Financial Targets (Consolidated)(Billion JPY)

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

400

40

300

30

200

20

100

10

0

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

11th Plan

Sales(left scale)0

Ordinary Profit(right scale)(Billion JPY)

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

Management Plan targets

2010

2011

Total

2012

2013

2014

Total

FY2015 – FY2017

Order Value

70.5

97.0

90.4

257.9

109.2

148.0

113.7

371.0

(3-year cumulative total)

Sales

95.1

89.1

101.0

285.3

96.3

96.3

103.8

296.5

(3-year cumulative total)

Ordinary Profit

2.0

4.4

7.3

13.7

7.1

9.4

9.1

25.7

(3-year cumulative total)

400 Billion JPY

360 Billion JPY
27 Billion JPY

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

Water Treatment Plant BusinessBusiness Environment

Business Environment●

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

●

Emphasis of Future Activities

Emphasis of Future Activities

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

●

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

Boiler Plant Business (Overseas)

Business Environment

Business Environment

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

●

Emphasis of Future Activities

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

Emphasis of Future Activities

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

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

Waste Treatment Plant Business (Overseas)

Package Boiler BusinessBusiness Environment

Business Environment●●

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

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

7

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

Boiler Plant Business (Japan)●

TAKUMA CSR REPORT 2017●

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

Emphasis of Future Activities●●

Corporate Information

11th Medium-Term

2009

●

Corporate Profile

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

The Takuma Group Network
Business Summary

Corporate Information
Company outline
TAKUMA CO., LTD.
2-2-33 Kinrakuji-cho, Amagasaki, Hyogo 660-0806, Japan
TEL +81-6-6483-2609 FAX +81-6-6483-2751 (operator)
Representative Director: Takaaki Kato, President and CEO
Established:
June 10, 1938
Capital:JPY 13,367,457,968 (as of March 31, 2017)
Main business areas:
The design, construction and superintendence of a wide variety of boilers, plant machinery, pollution
prevention plants, environmental equipment plants, and heating and cooling equipment andfeed-water / drainage sanitation equipment and facilities
The design, construction and superintendence of civil, architecture and other works
Number of employees (non-consolidated): 824 (as of March 31, 2017)
Number of employees (consolidated):
3,447 (as of March 31, 2017)

Permits and registrations

Internal Audit Dept.
Compliance & CSR Promotion Div.

Corp. Planning & Administration Div.

Board ofDirectors

President

Audit & Supervisory
Committee
Audit & Supervisory
Committee’s Office

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

Ordinary income[Non-consolidated](Million JPY)

(Million JPY)

120,000

Corporate Service Div.

Committee of
Executive Officers

Net sales

80,00012,00064,2888,022

72,445 7,406

73,327

8,937

4,000

0

Administration Div.

0

2014

Environmental Plant Div.
120,000

103,874

International Operations Div.
Engineering Group

2016

113,088
9,116(Million JPY)

116,309 11,605

80,0008,000

40,0004,000Management Center
0

0

2014

Technology Center

2015

Engineering Center

Domestic Environment andEnergyOverseas Environment andEnergyConstruction Center

Package Boiler

Project Center

2016

(FY)

5.7%
14.7%
1.9%

77.7%

Equipment and System
Business

Harima Factory

Net sales composition ratios (FY2016)

Sales

1949

1958

1975

1999

2006

2010

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

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

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

ISO14001 certification obtainedfor our Harima Factory

1949

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

Company listed on the
Osaka and Tokyo stock
exchanges

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

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

1930

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

1953

1986

Vacotin heater

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

1972

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

The venerable
Tsunekichi Takuma

2004

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

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

Head Office moved to
Osaka’s Kita-ku District

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

Amagasaki Head Office Building
completed

2005

2007
00

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

Takuma’s first “CSR
Report” issued

Hundreds ofmillions JPY

(

)

1,500

2013

Operation of the
Takuma Solar
Power Plant began

1,000

2005

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

1998

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

1997

ISO9001 certification obtained

500

Amagasaki Factory

1970

1942

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

Operation began at
Harima Factory

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

TAKUMA CSR REPORT 2017

12,000

9,646

1912

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

Energy Plant Div.

2015

Kyushu Branch, Hokkaido Branchand Harima Factory

The History of Takuma

1938

8,000

40,000

Corporate Marketing Group

Corporate
Information

Name:
Head office location:

9

Balance sheet overview andnet sales composition ratios

Corporate structure (as of June 28, 2017)

1993

1999

2012

Basic Environment
Act enacted

Act on Special
Measures against
Dioxins enacted

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

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

(FY)

TAKUMA CSR REPORT 201710

The Takuma Group Network
3
4 9

19

(as of April 1, 2017)27

11
10 6 17
7 22

21

14

24

25
29

12

2

1 Nippon Thermoener Co., Ltd.

4

5

2

6

7

3

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

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

Sale of cogeneration systems and systems for thegeneration equipment of the same and total service
for onsite energy systems for consumer use
Midosuji Daiwa Bldg., 3-6-8 Kyutaromachi,
Chuo-ku, Osaka 541-0056, Japan
TEL +81-6-6241-6200 FAX +81-6-6241-6210
http://www.energy-mate.co.jp/

3 Hokkaido Sanitary Maintenance Co., Ltd.

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

1

Head Office

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

Osaka Office

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

6

Chubu Branch

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

Kyushu Branch

Yakuin Business Garden, 1-1-1 Yakuin, Chuo-ku,
Fukuoka 810-0022, Japan
TEL +81-92-717-2828 FAX +81-92-717-2830
8

Okinawa BranchCommons Bldg., 1-11-12 Mashiki, Ginowan,
3 Tokyo Branch
Nomura Higashi-nihonbashi Bldg., 1-1-7 Higashi- Okinawa 901-2224, Japan
TEL +81-98-898-6650 FAX +81-98-898-6657
nihonbashi, Chuo-ku, Tokyo 103-0004, Japan
TEL +81-3-5822-7800 FAX +81-3-5822-7888 9 Harima Factory
1-2-1 Shinhama, Arai-cho, Takasago, Hyogo
4 Hokkaido Branch676-8540, Japan
Daigo Bldg., 5-11, Ohdori Nishi, Chuo-ku,
TEL +81-79-443-6511 FAX +81-79-443-6599
Sapporo, Hokkaido 060-0042, Japan
TEL +81-11-221-4106 FAX +81-11-241-0523 10 Taipei Branch
7F., No.16, Lane 35, Jihu Rd., Neihu District,
5 Tohoku Branch
NMF Sendai Aoba-dori Bldg., 2-1-2 Ichibancho, Taipei 114-92, Taiwan
Aoba-ku, Sendai, Miyagi 980-0811, Japan
TEL +886-2-8752-3838 FAX +886-2-2656-0584
TEL +81-22-222-3042 FAX +81-22-225-6759

11

TAKUMA CSR REPORT 2017

Overseas group companies
1

Taiden Environtech Co., Ltd. (Taiwan)

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

Siam Takuma Co., Ltd. (Thailand)

Sale of energy and environment-related plants,
sales of parts for the same plants and after-sales
service
77/53 Sinn Sathorn Tower, 15th Floor,
Krungdhonburi Road, Klongtonsai, Klongsarn,
Bangkok 10600, Thailand
TEL +66-2-4385616 FAX +66-2-4400114

20 Suwako High Trust Co., Ltd.

Operation and maintenance management of amunicipal solid waste treatment facilities
4769-14 Uchiyama, Okaya, Nagano 394-0055,
Japan
TEL +81-266-78-1590 FAX +81-266-78-1591
http://www.suwako-ht.jp/

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

8

10 Kankyo Sol-Tech Co., Ltd.

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

4 Takuma Technos Hokkaido Co., Ltd.

Takuma’s business offices

28

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

1

13

5

1 2

18

Group companies in Japan

9

8

20

10 1

23
26 15

The Takuma
Group Network

16

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

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

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

11 Campo Recycle Plaza Co., Ltd.

12 Nagaizumi High Trust Co., Ltd.

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

Operation and maintenance management of municipal
solid waste treatment facilities
2168 Ishikawa, Fujisawa, Kanagawa 252-0815, Japan
TEL +81-466-45-5411 FAX +81-466-45-5454
14 Iwate-Kenpoku Clean Co., Ltd.

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

Operation and maintenance management of municipal
solid waste treatment facilities
103-2 Shinkocho, Hitachinaka, Ibaraki 312-0005, Japan
TEL +81-29-265-5371 FAX +81-29-265-5372
http://hitachinaka-tokai-ht.com/
16 Anan High Trust Co., Ltd.

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

8 Dan-Takuma Technologies Inc.

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

9 Kyoritsu Setsubi Co., Ltd.

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

Manufacture and sale of clean equipment, cleaning
equipment, chemical filters, clean rooms, drying
equipment and thermal chambers
3-12-16 Iwadokita, Komae, Tokyo 201-0004, Japan
TEL +81-3-3488-1111 FAX +81-3-3488-1118
http://www.dan-net.com/
Design, construction and superintendence of waste
treatment facilities, mechanical equipment of sewage
treatment facilities, and boiler plants for general industries
5-1-38 Yurigahara, Kita-ku, Sapporo, Hokkaido
002-8081, Japan
TEL +81-11-770-2811 FAX +81-11-770-2822

18 Kurume High Trust Co., Ltd.

19 Hokutan High Trust Co., Ltd.

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

21 Energy Mate Co., Ltd.

22 Takuma Plant Service Co., Ltd.

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

Wood biomass power generation business
1974-1 Koya, Hitachinaka, Ibaraki 312-0002,
Japan
TEL +81-29-270-3341 FAX +81-29-270-3343
24 Kashihara High Trust Co., Ltd.

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

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

Industrial waste and municipal solid waste treatment
services
1968-2 Koya, Hitachinaka, Ibaraki 312-0002, Japan
TEL +81-29-270-3711 FAX +81-29-270-3712
http://www.eco-katsuta.com/
27 R.B.N. Co., Ltd.

Municipal solid waste, including waste home
appliances and office automation equipment, andindustrial waste treatment services
3059-20 Nakajima, Shikama-ku, Himeji, Hyogo
672-8035, Japan
TEL +81-79-243-1200 FAX +81-79-243-1202
28 Ichihara New Energy Co., Ltd.

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

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

TAKUMA CSR REPORT 201712

Business Summary
Environmental and energy business
Municipal solid waste treatment plants

Industrial waste treatment plants

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

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

Energy from Waste plant
Pyrolysis gasification and melting plant● Resource recycling and collection plant● Bulky garbage crushing plant● Incineration ash and fly ash melting
plant● Waste to solid fuel conversion plant● Transition and intermediate
processing plant● Raw fuel (biogas) recovery plant● Various types of pollution
prevention equipment●●

Industrial waste treatment plant●

Business
Summary

Energy from Waste plant

Bulky garbage crushing plantIndustrial waste treatment plant

Energy plants

Water treatment plants

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

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

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

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

Biomass power generation boiler

Waste heat boiler

Upflow moving-bed filtration system

Sewage sludge-fueled power plant

Package boiler

Equipment and systems business

General-purpose boilers

Air-conditioning equipment and clean systems

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

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

●

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

●

●

●

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

13

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

TAKUMA CSR REPORT 2017

Vacotin heater

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

Thermoheater

Super Eqos

RE boiler

Chemical filters

Clean oven

Clean booths

TAKUMA CSR REPORT 201714

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

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

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

CSR Report 2017

Feature: Striving to Coexist with Local Communities

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

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

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

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

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

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

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

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

TAKUMA CSR REPORT 2017

Financial Data