RESPONSIBLE CARERESPONSIBLE CAREＣＳＲ Ｒｅｐｏｒｔ ２０１７
Corporate Social Responsibility Report

06-Mar-2018

AST Inc.

The second new year has come since the Kumamoto earthquake in April ,2016.
We would like to express our sincerest sympathies again for all suffers and theirfamilies. We pray that their souls may rest in peace and cordially hope that
affected regions will recover completely from the damage as soon as possible.
AST INC.
President Akira Ishibashi
All employees and all groups

Responsible Care Activities
Responsible Care Activities are voluntary activities for the companies handle chemical substances
to implement and improve activities relating to environment, safety and health throughout a lifecycleof products. (development, manufacture, distribution, use, final consumption and dispose)
RC activities were born in Canada in 1985. Since The International Council of Chemical Association(ICCA) was established in 1990, each country's chemical industrial association has started topromote RC activities depending on individual circumstances and based on common principles, andthis activity has expanded to 53 countries as of October, 2007.
In Japan, Japan Responsible Care Council (JRCC) was established in 1995 and the activities
officially started.

CSR Report 2017
Since 2008, we have issued CSR report annually to announce results of RC activities and to
improve communication with society. This is 10th issue of the report.

Basic Responsible CareOur company's RC activities are implemented in five main categories as follows.
Security and Prevention
Industrial safety and health
Logistic safety
Environmental protection
Quality assurance

Communication（Conversation andPublication）

Community

RC activities are implemented according to the PDCA cycle.
Checking and Reviewing Activity Status by President

Ａ ctionInternal Audit

Ｃ heckRC Policy

Ｐ lan

Setting Policy andActivity Plan

Ｄo
Implementing Activity

System of Responsible Care activities

The President established the RC Committee to promote RC activities effectively and appointed
the General Manager of Environmental Safety Department as a chairperson of the committee.

President
RC Committee
Chairperson:
General Manager of Environment Safety Department

Quality
Assurance

Environmental
Preservation

ＱＭＳ

ＥＭＳ

Quality Management Committee

Environmental Management
Committee

Chairperson: General Manager ofEnvironment Safety Department

Chairperson: General Manager ofEnvironment Safety Department

Members:*Quality Assurance Group Leader*General Manager of divisions*General Manager of Transportation
Department*Others

Members:*Environmental Management Group
Leader*General Manager of Marine
Department*General Manager of Transportation
Department*Others

Healthand Safety

Security

SP Environmental Safety
Committee
Ship Safety and HealthCommittee
Vehicle Safety and HealthCommittee
Chairperson: General Manager ofEnvironment Safety Department
Members:*General Manager of Operating
Division*General Manager of Marine
Department*General Manager of Transportation
Department*Others

Report Period
January 1st to December 31st, 2017.

Report ScopeThree divisions of AST Inc. (Terminal and Warehouse, Marine Transportation, Land Transportation)

Contact information
AST Inc. (Advanced Storage & Transportation)
Environment Safety Department
4-17-23, Kita-horie, Nishi-ku, Osaka city, Osaka JapanTEL 81-6-6538-2845

Risks and its measures in our operating activities
Our company's main operating activities are transportation in three major business fields of marinetransportation by tanker ships, storage in tank terminal and warehouse, and land transportation
by truck, tank lorry and bulk container. We also operate packing operations and custom works
according to our main operating activities. We mainly handle petrochemical products andinorganic chemical products. Our logistical activities have general risks in the process oftransportation and storage such as fire, leakage accidents, industrial accidents, traffic accidents
and marine accidents.
We not only comply with laws and regulations, but also regulate internal rules in addition tolaws and regulations and administrative guidance. Sufficient safety measures to all possible
risks are taken by all employees, with strict compliance with the internal rules.

Possible Risks in Our Operations
Marine transportation①Marine accidents as ship collisions and groundings.
②Theft, leakage, fire accidents of cargo.
③Industrial accidents in handling cargo and other operations
Land transportation①Traffic accidents such as vehicle collisions②Theft, leakage, fire accidents of cargo.
③Industrial accidents in handling cargo and other operations.
Storage①Damages of tanks and warehouses by accidents.
②Theft, leakage, fire accidents of stored products.
③Industrial accidents in handling stored products and other operations.
Handling products：①Flammable liquid regulated as hazardous under the Fire Service Act.
Risks: Flammable and explosive by static electricity or other fire source.
②Deleterious substances regulated under the Poisonous and Deleterious Substances Control Act
Risks: Injuries, poisoning, oxygen deficiency, health hazard by touching, sucking and ingesting.
③Organic solvent and specified chemical substances regulated under Industrial Safety andhealth act.
Risks: Injuries, poisoning, oxygen deficiency, health hazard by touching, sucking and ingesting.

Risk management①Full compliance with applicable laws and regulations and controls and guidance by related
autholities.
②Establishment and full compliance with internal rules.
③Deviation monitoring by the Compliance Committee and Responsible Care committee.
④Sharing information by close relationship with various organizations and internally by horizontal
communication.
⑤Establishment of systems in safety and health, quality assurance, and environmental
management and the achievement of certifications.

Safety Information of Products
We keep documents about characteristics and safety information of our handling products (SDS
and other documents) at each operating office and head office.
We provide these information on demand of external interested parties. Please contact thefollowing if necessary.
Head Office Environment Safety Department 4-17-23 Kita-horie Nishi-ku Osaka city 81-6-6538-2845
1-6-1 Awaza Nishi-ku Osaka city
81-6-6538-2783
Hommachi Office Business Department
12-7 Nihonbashi Koami-cho Chuo-ku Tokyo 81-3-3664-9440
Tokyo branch
1-4-20 Hirao Taisho-ku Osaka city
81-6-6552-0561
Kizugawa Terminal
1-1-5 Kobayashi-higasi Taisho-ku Osaka city 81-6-6551-7850
Kobayashi Terminal
1-1-7 Hirao Taisho-ku Osaka city
81-6-6552-8484
Chishima Terminal
1-1-15 Tsurumachi Taisho-ku Osaka city 81-6-6554-2760
Namihaya Terminal
1-6 Funamachi Taisho-ku Osaka city
81-6-6554-7682
Funamachi Terminal
2-4-67 Hokko Konohana-ku Osaka city
81-6-6463-7301
Hokko Terminal
2-5-4
UmemachiKonohana-ku
Osaka
city
81-6-6468-5281
Umemachi Terminal
2-2-1 Takasago Takaishi city Osaka81-72-268-0616
Takaishi Terminal
2-4-67 Hokko Konohana-ku Osaka city
81-6-6464-6184
Land Transport Department Osaka
3-13
Ushiodori Kurashiki city Okayama 81-86-475-0567
Land Transport Department Mizushima
Mizushima
1-6-1
Awaza Nishiku Osaka city
81-6-6538-2784
Marine Transport Department Osaka
12-7 Nihonbashi Koami-cho Chuoku Tokyo 81-3-3664-9440
Marine Transport Department Tokyo

Complaints and Inquiries
We take all possible measures to ensure the SHEQSS (Safety and Health, Environmental
management, Quality assurance, Security, and Service) with our risk management for possible risk in
our operations. Please contact the following responsible persons for complaints and inquiries.
Safety and health, security
Environmental Management
Quality Assurance
Services (Sales Operations)

Safety and Health Representative

81-6-6538-2845

Environmental Management Representative

81-6-6538-2845

Environmental Management Group Leader

81-6-6538-2845

Quality Management Representative

81-6-6538-2845

Quality Assurance Group Leader

81-6-6538-2845

General Manager of Business Department

81-6-6538-2782
81-3-3664-9440

General Manager of No.1 Terminal Group 81-6-6552-0561
No.1 Terminal Group（Kizugawa, Kobayashi, Chishima, Namihaya, Funamachi Terminal)
General Manager of No.2 Terminal Group 81-6-6463-7301
No.2 Terminal Group（Hokko, Umemachi, Takaishi Terminal）
General Manager of Transportation Department 81-6-6464-6184
Transportation Department
Marine Transport Department

General Manager of Marine Transport Department 81-6-6538-2784

General Affairs Department（a whole company）
General Manager of General Affairs Department 81-6-6538-2788

CSR Activity Report
Safety and disaster prevention
Company-wide
Since we had big damages of the Great East Japan earthquake in 2011, we prepared and took
measures for big earthquake, and we also reconsidered the measures to prevent damage expansion
after the Kumamoto earthquake in April, 2016.
＊We completed seismic structure evaluation for hazardous materials facilities in 2015 andadvanced to enforce the safety inspection and conservation of facilities.
＊We reviewed measures for earthquakes and tsunamis.
＊We reviewed BCP(Business Continuity Plan)＊In addition to drills for earthquake, we decided to conduct drills for tsunamis, evacuationand safety confirmation (more than once a year). We installed satellite telephone for safety
confirmation
Disaster drills, emergency contact training
All operating offices, ships and vehicles of AST INC. are required to conduct disaster drills. All
terminals conduct disaster drills at least once a month, and Marine Transport Department andLand Transport Department conduct the drills at least three times a year.
All operating offices have organized the Fire Defense Organization for self-protection andconduct joint drills with Public Fire Department. Terminals in Sakurajima, Hokko and Takaishi area
also conduct joint drills with Joint Disaster Prevention Association in addition to joint drills
with Public Fire Department.
In 2017, every terminals and offices conducted self and joint disaster drills based on annual
training schedule, and joined in joint disaster drills with residents and competitions organizedby Public Fire Department.
Marine Transport Department conducted the drills for accident at sea, and Land Transport
Department conducted the drills for fire or leakage of vehicles. We conduct disaster drills basedon annual training schedule, and we try to improve disaster prevention including a neighborhood.

February 2nd, 2017. Fire drill at Kizugawa terminal

June 22th, 2017. Fire drill with Pubic Fire Department at Hokko terminal

July 25th, 2017. Study session supported by Public Fire Department at Hokko terminal

October 18th, 2017. Drill for extending oil fence with cooperative Fire Prevention Association

March 11th, 2017 No.1 Terminal Group (Kizugawa, Kobayashi, Chishima) joint Tsunami drill

June 14th, 2017. Marine transport department lifesaving training on tanker ship "Ikoma"

Terminals and warehouses＊The renewal audit by CDI-T(*1) was conducted in November, 2015.
The first renewal audit by CDI-T(*1) was conducted in November 2012, because threeyear validity period of the audit has passed since the first audit and second renewal
audit was conducted in November 2015. The previous audit was conducted with the 4thedition questionnaire and first renewal audit was conducted with 5th edition questionnaire(69 new checking items). The second renewal audit was conducted with 6th edition
questionnaire (126 new checking items), but the number of uncleared items was 45 items
less than the first renewal audit and our current matching ratio is 98% including
substitute ideas.
The next renewal audit is scheduled in November, 2018.
(*1) Chemical Distribution Institute - TerminalFirst audit： November 24th to 28th, 2009
AuditorJC Bae(JC Marine Services/Korea)
First renewal audit: November 19th to 23rd, 2012
AuditorJC Bae(JC Marine Services/Korea)
Second renewal audit: November 16th to 20th, 2015
Auditor
Tatsuyoshi Demizu (Tokyo Chemical Safety Operations/Japan)
Next renewal audit: In middle of November, 2018
Report №：
Hokko Terminal 1347 ／ Date of receipt 27-11-2015
Kizugawa Terminal 1348 ／ Date of receipt 27-11-2015
Scope：
Head office (The system of a whole company)
Hokko Terminal (Including a part of Land Transportation Department)
Kizugawa Terminal
Result：Hokko Terminal 96,91％
Kizugawa terminal 96,33％
All items：
2,002（Management：925，Technical ：1,077）
Uncleared items: Hokko terminal ：54（Management： 7，Technical ： 47）
Kizugawa Terminal： 64（Management： 9，Technical ： 55）※There were many uncleared items which comply with Japanese law, but
CDI-T encourages an international standard.
Except for these items comply with Japanese law, 97% of the CDI-T
questionnaire was cleared.
We improved the uncleared items according to auditor's guidancein December 2015 and 98% of the CDI-T questionnaire was cleared.
※Generally, 60% matching of all of items is the standard value ofsafety, however we perform further to complete all items.
Reference All items (First audit)：1,807（Management：807，Technical ：1,000）
Uncleared items： 177（Management： 67，Technical ： 110）
All items (First renewal audit)：1,876（Management：860，Technical ：1,016）
Uncleared items： 163（Management： 68，Technical ： 95）※Kizugawa and Hokko terminals conducted the first audit and the firstrenewal audit together, but this time they were inspected separately.
Internal audit: From June to November 2015, we conducted self-audit 12 times with all
items of 6th version of CDI-T and cleared 98% matching rate.

Chishima terminal, Namihaya terminal, Umemachi terminal, Takaishi
terminal, Osaka Land Transportation section, Osaka Business Department
General Affairs Department are not in inspection target, but they attended
self-audit and embark on an effort to follow the items recommended insafety as the applying mutatis mutandis terminal.
Next audit： This year(2018) is the third years since last renewal audit.
The next renewal audit is scheduled for November 2018.
＊We join the committee for Oil Containment and Control in Osaka Bay and the Harima Sea,
and cooperate to prevent marine pollution in compliance with related laws and regulations.
Members： Kizugawa terminal, Kobayashi terminal, Chishima terminal
Namihaya terminal, Hokko terminal, Umemachi terminal, Takaishi terminal※On-site inspection by Ministry of Land, Infrastructure, Transport and tourism has
been started orderly from Kizugawa terminal in March, 2011 and full preparation for
emergency response is confirmed.
＊The terminals who have many arrivals of ocean-going ships are designated as International
ships and harbor facilities in compliance with International Ship and Port Facility Security(ISPS) Code ratified by International Convention for Safety of Life at Sea (SOLAS) andapproved as ISPS-compliant port facilities.
Scope： Hokko terminal (Q-4B,Q-2 Piers)※The on-site inspection for international harbor facilities is conducted by
Ministry of Land, Infrastructure, Transport and Tourism in December, 2017 and our full
preparation for safety was confirmed.
Takaishi terminal (Takaishi chemical Pier)※The on-site inspection for international harbor facilities is conducted by
Ministry of Land, Infrastructure, Transport and Tourism in December, 2017 and our full
preparation for safety was confirmed.
＊The ships safety check list of ISGOTT(*2)
ISGOTT provides the checklists for discussion and agreement between terminals
and ships for loading operations. In our terminals, we use marine loading confirmation
form(started operating in July, 2010) that combines all requested items of ISGOTT andexisting check lists to improve the relationship between terminals, ships and International
Standard Compliance. We also operate according to the epistle for safety written as "to makeeffort to secure safety and consider the safety and efficient operations" (started operatingin September, 2011) to secure the safety loading operation in the fair position between
terminals and ships.
(*2) ISGOTT＝International Safety Guide for Oil Tankers and Terminals＊We join the various safety and security organizations and contribute to neighborhood safety.
＊Improvement of terminal safety by using KPI
We use the KPI（Key Performance Indicator）to assess important facilities andequipment, and judge sustainability and necessity of improvement. It helps to find troubles
in advance and prevents troubles and accidents caused by aged deterioration andobsolescence. We have used KPI since 2013.

＊We installed 24-hour surveillance cameras in combination with manned security system
in main operating offices and garage of Land transport Department.
Installed：7 operating offices(12 points)
Surveillance：24-hours surveillance and voice warning as necessary in Hokko terminal.
Supervisor can access at the desk and home computer by using internet line.
Recording：24-hours recording on host computer of Hokko terminal.
※ It has been 12 years since we started operating monitoring cameras. To resolve
obsolescence of these cameras, we will add new cameras and replace existing cameras
with new ones. We will also rebuild the network and enforce to update the whole systemof surveillance. (will be completed in April, 2018)＊We changed the security system from our company's security to a professional security
company in 2013 to improve security quality.
Marine Transportation Division＊We operate safety navigation according to safety regulation of Ministry of Land,
Infrastructure, Transport and Tourism.
Establishment ：October 1st, 2006
Commencement date ：December 20th, 2006
(Notification to Kinki District Transport Bureau on December 6th)
Administrative audit ：August 7th, 2007
(Transportation Safety Assessment by Kinki District Transport Bureau.)：September 29th to 30th, 2016
(The second Transportation Safety Assessment by Ministry of Land
Infrastructure, Transport and Tourism, Minister's Secretariat
and Transportation Safety Officer.)
Good items：4
Items pointed out: 0
Suggested items：2（Improved items：2／Items under consideration：0／Unresolved items：0）※The third Transportation Safety Assessment is scheduled on Febrary 7th, 2017.
Internal audit：December 19th, 2017（Compliance with the Safety Management Code was confirmed）＊We join various safety and security organizations and contribute to marine safety.
Land transportation Division＊G-Mark (Certification for safe and exemplary companies) was certificated in December,2005 and we strive for safety operation.
Validity Period: January 1st, 2015 to December 31st, 2018 (4 years)
Evaluation items：Ⅰ．Compliance with Laws and Regulations of safety
Ⅱ．Status of accidents and violations
Ⅲ．Aggressiveness in safety activities※We gained the 10 years awards from Osaka Transportation Bureau forcontinuing to update G-mark many years on December 16th, 2016.
＊We join various safety and security organizations and contribute to neighborhood safety.

Industrial Safety and Health＊Each terminal and operating office set up Safety and health committee to secure industrial
safety and health.
＊We conduct various internal audits and confirm our industrial safety and health.
Terminals：SP safety audit (Stock Point)11 offices (12 divisions)
August 23rd to November 2nd, 2017
Items pointed out：27（Improved items：27／Items under consideration：0／Unresolved items：0）
Land Transport Division：SHEQS audit
12 operating offices and 11companies
May 24th to July 21st, 2017
Items pointed out：37（Improved items：37／Items under consideration：0／Unresolved items：0）
Internal audit under the Safety Management Code December 19th, 2017
Items pointed out：0
Suggested items：1（Improved items：1／Items under consideration：0／Unresolved items：0）
Visiting ships activities：169 times（13 ships）
Average for each ship : 13times, Average for each month : 14 times＊We conduct medical examination once a year, and special medical examinations twice ayear to maintain employees health.
＊Decision of employees' condition and ability.
All employees and cooperated companies' sailors and drivers have taken breath alcohol
tests and physical checks everyday to judge if they can work since December 2006.
Since December 2008, Kizugawa terminal, Hokko terminal and Osaka transportation Department
installed advanced alcohol checkers which can save test results with pictures on computers.
Alcohol checkers in the Land Transportation Department has a certification system
which checks if the driver has proper licenses and system to notice the expired
licenses. All drivers are required to take breath alcohol test at the time of arrival before
agreement corrections.(*3)
No drivers failed breath alcohol tests and physical condition checks in 2017.
(*3)By agreement corrections by the Safety Rules of the Act on Service of Cargo
Transportation by Automobile, and all drivers are regulated to take alcohol checkat the time of arrival from April 1st, 2011.
At Hokko terminal and Osaka Land Transportation Department, the drug tests are
conducted by a third party institution at the request of one of customers.
Scope：Managers、Field operaters、Drivers of tank lorries.
Freqency：When they hired, once in 2 years
Method of inspection：Measure the drug in urine.

Safety Transportation＊We compile and analyze accidents and near misses of a whole company monthly and annuallyand give feedback to all employees.
＊We issue S&E circulation about safety, health and environment to a whole company
and all partnering companies to share the measures to prevent future accidents
by horizontal communication and to give warnings.
2017, we issued 31 SHEQSS information, 3 main articles of revised Laws and regulations
and 24 accidents of other companies.

＊Encouraging Employees to Gain Licenses
As a company handle hazardous materials, we positively promote workers to gain
national qualifications relating to Fire Service Act, Poisonous and Deleterious Substances
Control Act and Occupational Safety and Health Act. We have the total of 93 people gaining
national certifications out of 120 candidates. (The pass rate is 78%)
＊Standard education
We have educated all employees' knowledge from the basic to advanced level which is required
to work. We have conducted internal and external educational training by specialists to all
employees to bridge the gap of knowledge and to raise employee's level.
4times in 2017Class for hazardous materials
engineer qualification

April, 10th to 14th, 2017
CENTRAL SECURITY
PATROLS CO.,LTD. AED lesson

April 19th, 2017 TOYOTA
Safe Driving training
for forklifts

Terminals and warehouses＊We hold four times SP safety environment committee meeting to secure safety.
The annual schedule of next years' safety activities are approved at the end of the year, andimplemented according to PDCA cycle.
The progress status and results are verified in regular meeting and internal audit.
Committee meeting：Four times (March 23rd , June 7th, September 13th, December 13th)
Agendas＊Planning annual schedule of safety education and confirmation of progress status.
＊Announcement of serious accidents and near-misses, considering the measures and verification.
＊Sharing information of measures for accidents and near-misses.
＊Educational training according to amendment of laws and regulations.
＊Educational training for accidents, troubles, safety documents and regulations.
＊Report the results of each audit and improvement status.
＊Response to the President's instructions.
＊Reporting status to administration.
＊Construction for enlarging the south jetty (Q-2) at Hokko terminal was complete in December
2013 and maximum duck ability specifically for hazardous material was increased from 1800D/Wt
to 6842D/Wt.

Marine Transportation Division
The annual schedule of next years' safety activities are approved at the end of the year, andimplemented according to PDCA cycle.
The progress status and results are verified in regular meeting and internal audit.
Convention：once a year (January 27th, 2017)
Regular conference：Twice a year (June 16th, November 17th, 2017)
Agendas＊Planning annual promotion schedule for safety and health activities and confirmation of
implementation status.
＊Commendation for no accident.
＊Educational training according to accidents, troubles, safety and company's regulations.
＊Information and requests from terminals.
＊Opinions and requests from ship owners.
＊Safety management regulations, safety navigation, propriety decision of workers, andstrengthening of visiting ships activities.
Land Transportation Division＊We hold the vehicles safety and health conference three times a year to secure safety.
The annual schedule of next years' safety activities are approved at the end of the year, andimplemented according to PDCA cycle.
The progress status and results are verified in regular meeting and internal audit.
Convention：once a year (February 25th, 2017)
Regular conference: Twice a year: Osaka (July 28th, November 22nd, 2017)
Mizushima (July 21st, November 2nd, 2017)
Agendas＊Planning annual schedule for safety and health activities and confirmation of
implementation state.
＊Educational training according to accidents, troubles, safety information documents andregulations.
＊Information and requests from terminals.
＊Opinions and requests from subcontracting companies.
＊The problems and sharing information of safety and health.
＊Our company's all heavy vehicles installed digital tachometers and dashboard cameras.
Compilation of Accidents and Near-misses
Environment Safety Department compiles reports of accidents and near-misses of all divisions.
＊Each terminals and operating offices report the details and measures of accidents andnear-misses to Environment Safety Department every Monday.
＊Environment Safety Department compiles the reports and gives feedback toa whole company.
We established the system to nip big accidents in the bud, and take measures even to small
accidents and near-misses. Environment Safety Department offers suggestions if necessary.

Environmental Preservation＊We are certified according to ISO14001(JISQ14001:2015)
Organization ：JAPAN CHEMICAL QUALITY ASSURANCE LTD.
Date of certification ： November, 25th, 2008
Certification number: JCQA-E-0844
Scope ：Environment Safety Department in head officeBusiness Department in Hommachi office ＊Marine Transportation Department＊Tokyo branch, Tokyo Business Department
No1 Group Terminals Kizugawa Terminal, Namihaya Terminal※Kobayashi Terminal ※Chishima Daiichi Terminal
No2 Group Terminals Hokko Terminal, Umemachi Terminal ※Takaishi Terminal
Land Transport Department Osaka Land Transportation section※：ISO Mutatis mutandis application
External audit：Renewal audit was conducted on October 12th and 13th, 2017.
After the audit, update registration was approved by the Register Committee ofRegistered Probation Organization.
In 2017, we had the following environmental objectives and achieved these objectives
and goals.
Three years plan：January 2017 to December 2019
１．Reduction of waste
２．Promotion of zero emission
３．Reduction of environment pollution by using KPI＊Prevention of marine pollution
Marine：Tanker ships have made an outsourced contract with the Maritime Disaster Prevention
Center to prevent marine pollution.
Land：Terminals have landing piers or weaves join the member of the Committee for Oil
Prevention and Oil containment and Control in Osaka Bay and the Harima Sea. This committee is amutual organization for an emergency. We stock equipment for oil separation and we actively joinin educational trainings, table top exercises and share the contents to a whole company
by horizontal communication.
The General Manager of Environment Safety Department has served a director of the Committee
for Oil Prevention and Oil Containment and Control in Osaka Bay and the Harima Sea since thiscommittee started, and he also serve a manager of newly established executive committee
since 2014.
＊Umemachi terminal has a facility to land washing water which occurs in washing operarionof tanker ships and a facility to dispose the industrial waste.
This terminal land washing water of hazardous substances regulated by Maritime Pollution
Control Act or oil classified by Ministry of Land, Infrastructure, Transport and Tourism andoperate an intermediate treatment of disposing industrial waste by oil separation. This terminal
waccept not only our company's ships, but also accept ships of other companies. This is oneof the few facilities in Osaka Bay.
We reduce environmental load by treating washing water properly at Umemachi terminal
according to related laws and regulations.

＊Hokko terminal has a washing facility (Cleaning station) of tank lorries and ISO containers.
They enforce the washing operation of products such as hazardous substances without
affecting the environment by completely recovering Volatile Organic Compound (VOC), waste
water and washing water and disposing them properly.
＊Kizukgawa terminal has the system to supply power source to ships at anchor. Ships can turnoff the engine and it improve inboard environment and also reduce noise to neighborhood and CO2.
＊All tank lorries of Land Transport Department have tachometers and dashboard cameras.
Tachometers show the driving result by numerical data, and dashboard cameras record driving
situation visually. These functions helps the management of safety driving and improve fuelefficiency, and reduce CO2.
＊We sequentially install pollution coating that reduce 97% of solar heat on the warehouses andtanks in each terminal.
By reducing the temperature changes in tanks, volatilization of chemical substances and tankventilation are controlled, and VOC emissions are reduced. It is equally effective with air
abatement equipment by using insulation coating and atmos valves together.
It also improve freezing effect in low temperature warehouses and save power consumption.
Current status
Hokko terminal：３９tanks（ ２８,２５０ＫＬ）
３ warehouses（１,７１６㎡）
Kizugawa terminal ：１１Tanks（ ６,２２０ＫＬ）
Namihaya terminal ：１１Tanks（ ４,５６７ＫＬ）
１warehouse（９８㎡）
Umemachi terminal ： ７Tanks（ ３,１１７ＫＬ）
Takaishi terminal ： ２Tanks（ １,９００ＫＬ）
Kobayashi terminal ： ２Tanks（ 1,６５０ＫＬ）＊An electric propulsion chemical tanker "Atago" (498G/T) started operating in March, 2013.
It reduces the use of fuel and CO2 emissions.
＊Windows in head offices and all main operating offices has been renovated to shading
specification. By improving cooling effect , we can save operating time and preset
temperature and reduce power consumption.
＊We promote LED conversion of lightning.
Head office：Finished LED conversion of all lightning in February, 2011.
※Head office reduced 35% of all power consumption as compared with 2010.
Operating offices：Approximately 98% of lighting in the operating offices were replacedwith LED lightning as of December, 2015
※Each operating offices reduced 10 to 30% power consumption as compared with 2011.
Main terminals finished LED conversion of all lightning.
※The power consumption of LED lightning is about a quarter of mercury lamp's
so we can expect a major effect on energy saving.

＊We promote energy-efficient air-conditioners
Head office： All of the old air-conditioners were replaced with energy-saving ones since 2011,
and we completed insulation coating on all air-conditioner outdoor units.
We reduced about 35% of all power consumption by LED conversion and insulation coating onelectric power receiving facilities.
Offices： 95% of old air-conditioners were replaced with energy saving ones and we completed
insulation coating on 80% of air-conditioner outdoor units as of December, 2015.
We continue to promote the replacement of air-conditioners and insulation coating on
air-conditioner outdoor units.
＊We have promoted to replace engine type forklifts with battery type forklifts for environmental
protection, but since 2012, we keep 30% engine type forklifts for BCP such as power failure bydisasters as earthquakes.

Quality Assurance＊We are certified according to ISO9001(JIS Q 9001:2015)
Organization：JAPAN CHEMICAL QUALITY ASSURANCE LTD
Date：April 6th 1998
Certificated Number ：JCQA-0324
Scope ：Environment Safety Department in Head officeBusiness Department ※Marine Transport Department in Hommachi office
Tokyo Business Department ※Domestic Transportation Section in Tokyo branch
No.1 terminal group Kizugawa terminal, Kobayashi terminal, Chishima terminal
No.2 terminal group Hokko terminal, Umemachi terminal, Takaishi terminal
Osaka Land transportation Department
Mizushima office Mizusima Land Transport Section and Pier operation section※Hachinohe office ※Chiba office(※ISO Mutatis-mutandis Application)
External audit：Renewal audits were completed on March 14th to 15th, 2017.
After the audit, update registration was approved by the Register Committee ofRegistered Probation Organization.
In 2017, we had the following objectives and achieved these objectives.
１．Reduce transportation accidents.
Set the accident rate at each operating offices.
２．Improve the quality of logistics operation.
Set the detailed objectives at each operating offices.
３．Improve and maintain 5S.
Set the detailed objectives at each operating offices.
４．Improvement activities and preventive activities.
Set the detailed objectives at each operating offices.
In 2018, we operate with same objectives as 2017.

＊Marine Department
7 ocean-going ships are certified under the International Safety Management Code (ISM)
4 ocean going ships are certified under the Chemical Distribution Institute Marine (CDI-M)
The operation section of Marine Department is certified according to ISO 9001.
＊The operation section of Marine Department manages and operates as applying
ISO 14001 Mutatis-mutandis.
＊ＢＣＰ(Business Continuity Plan)
We established the BCP basic regulations to continue and recovery the operation
quickly from emergency such as pandemic, earthquake, tsunami, typhoon.
The effect of BCP was shown in emergency contacts and safety confirmations at theGreat East Japan Earthquake, in March 2011.
December 2013, we installed satellite telephones to main offices to improve thecommunication at the big disasters as earthquake and tsunamis and personal safety
confirmation.
＊Sales activities
We opened Hommachi office on July 4th, 2016 and moved Business Department and Marine
Transport Department there to improve business activities and service operation to satisfy
customer's demand.

Communication with customers and external interested parties.
＊Awards from Government Agencies, Industry Groups and customers in 2017.
January,11th Hachinohe office received a safety award to achieve claim and trouble zero froma chemical company.
January,17th Hokko terminal received a safety award to achieve no accidents and no disasters during
year-end and new year holidays from a chemical company.
Febrary,22nd Our chemical tanker ship "Rokko" received an award for safety excellence tanker from achemical company for no accidents, no disaster and stable navigation.
April,25th Chemical tanker ship "22 Kyokuhomaru" received an award from chemical company for no
accidents and no disasters for 3 years.
April,25th Chemical tanker ship "Rokko" received an award from chemical company for no accidents
and no disasters for a year.
May,15th General Manager of General Affairs Department received a commendation from Osaka
Industorial Chemical Association for long term service.
May,15th The Deputy Manager of Kizugawa terminal received a commendation from Osaka Industorial
Chemical Association for long term service.
May,18th Ast Inc. received a safety award from a chemical company for no accidents, no disasters
and improving activity of transport quality.
May,19th Hokko terminal received an award from chemical company for no accidents and no disasters.
May,19th The deputy manager of Hokko terminal received an award for continuing no accidents,
no disasters and contribution to improve transport quality.
MAY

Our tanker ship "Atago" received an award from Japan Safety Cargo Association for no

accidents during loading operations.
May,26th Our tanker ship "22 Kyokuhoumaru" received an award from a chemical company for safety
excellence tanker for no accidents, no disasters and stable operations.
May,28th Kizugawa terminal received a letter of appliciation from Taisho Fire Department for corpoatingin their "Open Day".
June,6th Our tanker ship "11 Keishinmaru" received an award from a chemical company for safety
excellence tanker for safety management and disaster prevention.
June,9th Kizugawa terminal received an award for securing safety of hazardous facilities
to prevent hazardous disasters from the Governor of Osaka Prefecture.
June,20 Our tanker ship "Rokko" got an award from chemical company due to its perfect record
throughout the year.
December,15th Daimaru Sekiyu received an award for winning the third place in the Fire
Extinguishing Competition from Osaka City Taisyo Fire Department.

＊Customer Satisfaction Survey
We have conducted customer satisfaction surveys to improve communication with customers
and external interested parties since the end of 2010.
This is a key element of both ISO 9001 and ISO 14001.
We conducted questionnaire on November, 2017 and we received various opinions, requests
and praises. The result of survey were compiled and analyzed in Business Department
and fed back to all employees.
＊Communication with Local Communities
Just as last year, we had a offer to hold the job training experience to students ofa nearby school. We cooperated positively for their education and improving communication
with people in our neighborhood.
November 14th,15th,2017 at Namihaya terminal

Environment and Safety investment
We have invested necessary management resources to RC activities.
Details of investment in equipment for environment and safety in 2017 is stated in the chapterof the Safety Transportation and the Environment Preservation.

Compliance
In 2006, the Compliance with the General Principles was established.
We added prohibition of drunken, drugged and dangerous driving in 2007, and RC activities
were stated in writing in 2008.
At the end of 2010, the Alcohol and Drug Policy was established, and it has been in
effect from January, 2011.
＊The Compliances with the General Principles
Attached documents ＊Management Principles＊Ast Group's Code of Conduct＊AST group's Approach to Safety and Health＊Ast Group's Approach to Environment＊Responsible Care activities＊Alcohol & Drug policy

AST Inc. promote to operate business activities based on our Business Philosophy
and Code of Conduct. We have never been instructed, commanded or punished by authorities.
Also our employees have never been arrested or investigated by the police, and wenever had any complaints for acting against the public order and morality or been sued byexternal interested parties or neighborhood.

Management Principle (Business Philosophy and Network Construction)
Business Philosophy
Safety, Speed and Sincerity are our fundamental commitment uponwhich we expand our leading transportation business globally.
Since the foundation of our Company in 1934, we have been developing ourselves into the mostcomprehensive transportation company with the motto of “Safety, Speed, and Sincerity.”
In order to cope with a further innovation in an “Advanced Storage and Transportation” in ourbusiness, we have re-launched our Company, Kinki Transportation & Warehouse Co., Ltd., under a
new name on August 1st, 2005.
To take advantage of our 70 years accumulated business assets, know-how, and technicalexpertise, we firmly seek the future of our customers needs, and develop and offer to the customers
We will continue to serve our three major business fields in marine transport, storage, and landtransport, and will extend our service into a more consolidated distribution and a more globalized
transportation, which are surely the demand of our customers in future.

Network Construction
Using our nation-wide framework as information satellites we promote
our ability to provide consulting services
Using our nation-wide framework we are actively promoting our business and consulting services.
Leading edge techniques and skills have been adopted by making our time developed distribution
know-how available.
As professionals in an advanced storage and transportation industry, we plan to offer to ourcustomers to meet their every need in distribution systems in future, from quality control, safety, andefficient transport to cost saving measures.

AST Group's Code of Conduct
AST Group's board members and employees (hereinafter referred to as we) comply withall laws and regulations faithfully with an awareness of corporate social responsibility andmission. And we firmly act with corporate ethics and public decency as people engaged in
the industry.
1. Compliance with laws and regulations
As well as complying with the laws and regulations of both domestic and overseas, we
respect for social norms and strive to conform our business activities to normal businesspractices and social ethics.
2. Management of information
We will use any internal/external information which may come to our knowledge in thecourse of business for business purposes only and strictly maintain it to prevent leakage.
3．Health and safety of the employees
We ensure the health and safety of our employees in the workplace and establish a
comfortable work environment.
4．Respect for human rights and characters
We respect for individuals' human rights and characters.
5．Relationship with politics and the administration of government
We maintain a transparent and healthy relationship with politics and the administration of
government.
6．Coping with antisocial forces and organization
We do not have any relationship with antisocial forces and organization which might posea threat to the social order and healthy business activities.
7．Living together with local communities
We recognize the importance of the communication with local community, and establish
a good relationship.
We are aiming to live together with local communities by cooperating for its development
and activities to contribute to the safe and comfortable life.
8．Environment protection
We recognize the importance of environmental issues, and strive for an effective use ofresources and environmental protection through the business activities.

AST Group's Approach to Safety and Health
Safety and Health Ideal
Safety is the foundation of business activities. AST group complies with the relevant laws andregulations, and places the highest priority on safety and health of the public and our company inbusiness activities.
We create a workplace environment that allows our employees to work with peace of mind and stay
coordinated with local communities through the business activities which mission is to ensure thesafety. We maintain social responsibility as a reliable member of the community.

Safety and Health Policy
1. We give the highest priority to safety.
2. We promote the health control of our employees to maintain a healthy body and mind.
3. We secure the safety with the slogan, "Maintaining the state of no work accidents and injuries
in accordance with the rules and fundamentals".

Safety and Health Objective
1. No absence due to work accidents
2. General health checkups: Once a year, All employees
3. Special health checkup: Twice a year, All subject employees
4. Maintaining the state of no work accidents and injuries

Establishment of security system
1. Our terminals' premises are surrounded by the structure that can prevent invasion by outsiders
fromoutside and the important facilities/equipment are protected against invasion and theft with lockup
and guard.
2. The security cameras are installed to monitor around the clock in the terminals that have andhandlegoods.
3.dangerous
The security
guards are deployed to monitor around the clock in the terminals that have andhandledangerous
4. Thesecuritygoods.
guards are limited to the employees directly employed by AST Inc. or the staffs ofthereliablesecurity
companyand
signeda contractwith1)
We provide
education
training
required
forus.
security to the guards directly employed by AST
Inc.
2) The security company provides education and training required for security to the staffs of the
security company under the supervision of AST Inc.
3) The education on "Compliance with the General Principles" stipulating the prohibited matter fortheincludedin educationand training
required
for security.
4) employees
If intake of is
alcoholor drugs
is suspectedon duty,alcohol/drugs
testing are conducted.
5. The guards should be engaged in the development of objectives and plans for security.

AST Group's Approach to Environment
Environmental Ideal
The global environment protection is high-priority issue for everyone around the world. AST groupcomplies with the environmental laws and regulations, and promotes the business activities withenvironmental consideration.
We work together for mutual understanding and benefit with local communities through thebusiness activities with harmony between people and environments. We maintain social
responsibility as a reliable member of the community.

Environmental Policy
1. The environment protection is our mission.
2. We assure continuous improvement of environmental impact in the business activities, andactively
promote the following action to prevent of global warming and environmental pollution.
(1) Prevention of Environmental Pollutiona) Warehouse/ Terminal
The control equipments for air emissions are actively installed to reduce gas emissions
fromtanks.
The drainage equipments which comply with effluent regulations are installed to prevent
sewage contamination.
b) Land Transportation
The low-emission vehicles are actively installed and the vehicles which comply with thenewregulations
are replaced to reduce gas emissions from vehicles.
c) Marine
Transportation
The low sulfur fuel is used and the vessels which comply with the new regulations are
replaced to reduce gas emissions from vessels.
We actively promote waste treatment on land to reduce disposal from vessels to theoceans.
(2) Prevention of Global Warminga) Promotion of eco-drivingb) Promotion of energy savingc) Promotion of modal shift(3) Waste Reduction and Proper Disposal
3. We raise our employees' awareness of environmental problems, and make an active
contribution to environment protection.

Environmental Objective
1. Reduction in gas emission from tanks
2. Discharging of wastewater from terminals based on the effluent regulations
3. Use of high quality fuels and reduction in the consumption and gas emission due to safe driving.
4. All waste from vessels is collected and treated on land.
5. Introduction of the Cool and Warm Biz campaign as a means to help reduce electric consumption.
6. Proposition of modal shift to the customers
7. Separation of waste and recycling of paper and iron scraps
8. The planned education on environment is provided to our employees to raise their awareness.

Responsible Care Activities
Responsible Care (RC) activities are voluntary activities to implement and improve practices relating toenvironment, safety, and health throughout a life cycle of products; development, manufacture, distribution, use,
final consumption and disposal, on the initiative of companies that handle chemical substances.
In 1985, RC activities started in Canada. The International Council of Chemical Associations (ICCA) wasestablished in 1990. Since then, each country's chemical industrial association has promoted RC activities,
depending on individual circumstances and based on common principles.
The activities have been developed in 53 countries as of October 2007. The Japan Responsible Care Council(JRCC) was founded and officially started activities in 1995.

Corporate Social Responsibility (CSR) Report
CSR report of three divisions (Warehouse and Terminal, Marine Transportation, and Land Transportation) is madeand released annually to enhance social communication and to announce results of our responsible activities.

Basic Responsible Care
Our RC activities are implemented in five categories as follows:
Security and Prevention
Occupational Health and Safety
Logistic Safety

Communication(Dialogue andPublication)

Community

Environmental Preservation
Quality Assurance

RC activities are implemented according to the PDCA cycle.

Checking and Reviewing Activity Status by President

Ａ ctionInternal Audit

RC Policy

Ｃ heckＰ lan

Setting Policy andActivity Plan

Ｄo
Implementing Activity

Responsible Care Policy
Our RC activities are based on the Code of Conduct and the Management Principles.

System of Responsible Care
The RC Committee is internally established to promote RC activities effectively.

Alcohol & Drug Policy
Acts in violation of internal rules and policies and laws and regurations in their own is defined in Article
5 (Prohibited Matter for the Employees) - (1) in our "Compliance with the General Principles", and thedetails of the Article 10 (Compliance Monitoring) on "Alcohol and Drugs" which is especially disruptive
and may affect their operations directly are stipulated as follows:
1. Prohibited acts concerning alcohol and drugs
All employees should not act as below;
1) Driving of vehicles, navigating of vessels and monitoring sailing conditions after drinking/ under the
influence of alcohol.
2) Performing work duties after drinking/ under the influence of alcohol.
3) Dealing, possession and consumption of illicit drugs; such as hallucinogens, stimulants, opiates,
marijuana, thinner, etc.
4) Dealing, possession and consumption of drugs which have limited use by laws and regulations
for purpose other than the original intent, and dealing, possession and consumption of any otherdisruptive drugs
5) Using of prescriptions and therapeutic drugs for purpose other than the original intent
6) Driving of vehicles, navigating of vessels and monitoring sailing conditions while taking medicinaldrugs with sleep-inducing or hallucinogenic properties.
7) Operation of cargo-transporting equipment and fieldwork while taking medicinal drugs withsleep-inducing or hallucinogenic properties.
8) Obstructing of alcohol and drug testinga) Proxy test-takingb) Replacement of the sample for testing and adding a foreign substance into itc) Unreasonable refusal of the testing
2. Compliance monitoring for the prohibited acts
1) The company may conduct the following test to constantly monitor to make sure that the items 1),2), 6) and 7) in the preceding paragraph are being complied with. The employees and themembers of business partners shall give consent for the testing to prove that they comply withthese items.
a) Test items and criteria(1) Check for availability of operation before workｲ) Physical condition"Best criteria": No health problems, and no sleep-inducing or hallucinogenic symptomﾛ) Breath alcohol test
"Best criteria": Zero value of measurement(2) Breath alcohol test for professional vehicle drivers after returning to the offices"Best criteria": Zero value of measurementb) Examinees(1) The employees and the members of business partners engaged in driving of vehicles,
navigating of vessels, operation of cargo-handling equipment and fieldwork(2) The employees engaged in office work required by the director/ terminal managerc) Examiners and records(1) Managers of the operations section or the environment safety section in each terminals,
managers of the transportation department and the captain or chief officers of the marine
department

(2) Only if the director/ terminal manager requires, the employees should take each test bythemselves, and their managers should confirm immediately after the tests are completed.
(3) The examiners should record the test results on the designated form.
d) Examination period(1) All working days
(2) When the influence of alcohol or drugs is suspected as the cause of an accident or abnormal
behaviore) Availability of operation and penalties(1) Availability of operationｲ) Available: To meet all of the conditions before or during work as follows;ⅰ) The stipulated tests are completed before or during work.
ⅱ) All test results meet "Best criteria".
ﾛ) Not available: To meet any of the following conditions, and if so, working on the day isprohibited.
ⅰ) The employees who neglect or refuse the testsⅱ) Either test result is not "Best criteria".
However, if results of retesting are "Best criteria" and the director/ terminal manager
determines that the failure of "Best Criteria" in the previous test was caused by mechanicalerror or a trivial reason that does not affect the safety directly(*1), the employee isallowed to work from that point on.
(*1) A trivial reason that does not affect the safety directly;*Poor physical condition that does not affect operations, but uninfluenced by medicines*Alcohol response from other than alcohol in the mouth(2) Penaltiesｲ) The company should take measures regarding the employee who violates prohibited acts
concerning alcohol and drugs in accordance with the company rules.
ﾛ) If a serious consequence has occurred in the light of the public order and morals especially,
chapter 10 (disciplinary action) in the company rules will be enforced.
2) The company may conduct the following test when the external interested parties (hereinafterreferred to as the "customers") require that alcohol and drug testing be implemented by the third
party organization. However, written consent of the employee or the business partner and its
member is required to implement these testings.
a) Requirements for testing(1) When the customers require alcohol and drug testing, and the company understand thenecessity and agrees.
(2) The testing cost shall be borne by the customers.
(3) The company considers the customer's stipulation to determine the examinee.
(4) The total number of the examinees and examiners, and the testing cost should be reported toand approved by customers.
b) Test items and criteria(1) Urine testing for alcohol detection"Best criteria": Negative test result(2) Urine testing for drug detection"Best criteria": Negative test result
Object
MethodAmphetamine
Screening Test
CocaineScreening Test
Marijuana
Screening Test

Allowable Value (ng/ml)
1,000
300
50

OpiumScreening Test
2,000
Phencyclidine
Screening Test
25c) Examinees(1) The director/ the terminal manager, managers of the environment safety section, managersof operation section, and the general manager and manager of the transportation depertmentin the terminal who handle products of the customers requiring the testing.
(2) The employees and the members of business partners engaged in driving of vehicles,
navigating of vessels, operation of cargo-handling equipment and fieldwork who handle
products of the customers requiring the testing.
(3) The examinees who took completely the check for availability of operation before work andhave got the normal test result over the past year are exempted from the urine testing foralcohol detection.
d) Examiners and records(1) The third party organization designated/ suggested by the customer and agreed by thecompany(2) The third party organization determined by the company in the absence of a designation/suggestion by the customer(3) Managers of the operation section or the environment safety section in each terminal andmanagers of the transportation department should receive and record the test results fromthe examiners.
e) Examination period(1) From one month to one day before the employee is in charge of the subject operation.
(2) From one month to one day before two years passes since the previous testing when theemployee keeps being in charge of the subject operation.
(3) From one month to one day before two years passes since the previous testing when theemployee is in charge of the subject operation again.
(4) With in two years since this policy is established when the testing is agreed between
customers and us in particular.
(5) When the influence of alcohol or drugs is suspected as the causes of an accident or abnormal
behavior(6) An unannounced testing shall not be implemented from a human-rights perspective.
f) Availability of operation, retesting and penalties(1) Availability of operationｲ) Available: To meet all of the conditions before work as follows;ⅰ) The tests are completed within the stipulated period.
ⅱ) All test results meet "Best criteria".
ﾛ) Not available: To meet any of the following conditions, and if so, working on the day isprohibited.
ⅰ) The employees who neglect or refuse the testsⅱ) Either test result is not "Best criteria".
However, if results of retesting are "Best criteria" and the director/ terminal manager
determines that the failure of "Best Criteria" in the previous test was caused by mechanicalerror or a trivial reason that does not affect the safety directly(*1), the employee isallowed to work from that point on.
(*2) A trivial reason that does not affect the safety directly;*Positive test result from the effect of medicinal drugs taken properly*Positive test result from the effect of poor physical condition, and detection of tiny amount of
alcohol

(2) Retestingｲ) When the examinee himself makes objection with rational reasonsﾛ) When the company gets suspicious about the test resultsﾊ) When the company considers the retesting is necessary.
(3) Penaltiesｲ) The company should take measures regarding the employee who violates prohibited acts
concerning alcohol and drugs in accordance with the company rules.
ﾛ) If a serious consequence has occurred in the light of the public order and morals especially,
chapter 10 (disciplinary action) in the company rules will be enforced.
3. Storage, management of the test results and report to the customers
1) Storage, management of the test results
Managers of the operation section or the environment safety section, managers of thetransportation department and the captain or chief officers of the marine department
should store and manage the test results as personal information.
2) Report the test results to the customersa) When the test results are reported to the customers, personal information such as individualname must not be disclosed.
b) The following test results are reported to the customers.
(1) The total number of examinees who are taking tests.
(2) The number of examinees who took tests.
(3) The number of examinees whose test results are negative.
(3) The number of examinees whose test results are positive.
(5) Testing organization, Cost, Date
date of establishment: 5th Jan 2011
date of revision:-

AST Inc.