Torishima Report 2020

Torishima Report 2020
Fiscal 2019 (From April 1, 2019 to March 31, 2020)

The
st

Year

Door

The electricity used to print
this report is converted by
100% green power (windpower).

TORISHIMA PUMP MFG. CO., LTD.

Tel: +81-72-690-2308
https://www.torishima.co.jp/en/

Evolving towards the next 100 years while
carrying on the spirit of our predecessors

Message from the President

As we mark the 100th anniversary of our founding and begin the next 100 years, we at the Torishima Group

Torishima continues its
commitment to consistent &sustained service regardless ofglobal chaos.

updated our mission statement to incorporate a pledge to continue to evolve while valuing the history andtechnologies that we have inherited from our predecessors. Our keyword is “EVOLUTION.” To ensure that foreign
nationals, who now account for more than 40% of the Group’s workforce, can share the same philosophy, wedeveloped a simple statement of our vision based on that mission.
Our global workforce will come together to evolve towards the next 100 years based on the core values set forth in
the philosophy, mission, and vision below.

The Corporate
Philosophy
President and CEO

Kotaro Harada

Heritage

I’d like to thank our stakeholders for their continued

globalization has accelerated the pandemic, it’s also

understanding and consideration.

true that the world is capable of overcoming thisDuring fiscal 2019, we marked the 100th anniversary

threat through cooperation and solidary. This once-of our founding. This major milestone provided us

in-a-century crisis is precisely the time forwith an opportunity to revise our mission statement

governments and companies to show their true worth.

to better reflect today’s business climate, while

No matter how much society is disrupted, we atmaintaining our corporate philosophy of “Never lose

Torishima, will continue to fulfill our role of providing

the public trust, even if monetary loss provessafety and reliability to society as a pumpunavoidable.” We also standardized our vision in

manufacturer that is dedicated to supporting

English around the keyword “EVOLUTION.” This

infrastructure. We will continue to evolve through our

vision sets forth a single, shared direction that will

new mission and vision, enabling our business toguide our employees around the world as they movealways contribute to society—whatever kind of

forward.

society that may be after the pandemic.

The unprecedented COVID-19 pandemic continues

To all our stakeholders, I reiterate my sincere

to wreak havoc worldwide, leading many countries

gratitude and ask for your continued support,

to impose restrictions on economic activities andpatience and understanding.

travel. While it’s undeniable that humankind’s

The Mission

UpdateThe Vision

UpdateNever lose the public trust,even if monetary loss proves unavoidable.
This principle was the first to be incorporated in the mission statement put forth by Ryuhei Harada,a successful banker who joined Torishima in 1949 and revised the company’s fortunes with his
experience and knowledge.
Monetary losses can be reversed over time. However, loss of trust can take much longer—even
years—to reverse. This management philosophy, which identifies trust as the most importantfactor in business, has been passed down unbroken as our corporate philosophy.

Passion for our Products and Services.
Evolving to meet the demands of an ever changing world.
We’ve updated our mission statement. Torishima has been in business for a century because our
employees have built trust worldwide based on our corporate philosophy as we manufacture andsupply pumps that are indispensable to society. This Mission statement embodies a pledge tocontinue to evolve by embracing changes while safeguarding our core competence in pumping
technology.

The vision describes how individual employees should conduct themselves as they carry out our
mission.
We designed an “EVOLUTION” graphic that provides a visual cue that’s easy to understand andremember so that the vision will permeate our organization and reach all employees worldwide.
The six-part vision is a touchstone for determining the proper direction to take in daily business.

TEAMWORK

DIVERSITY

Combining our skills to achieve
our common goal

Embracing diversity to achieve
success and maximize our
global presence

PROFESSIONAL

CLARITY

Fulfill our duties andresponsibilities to provide thebest service possible

Working with integrity,transparency and sense ofsocial responsibility

Contents
Message from the President�����������P.1
Meet Torishima CSV— Creating Shared Value ���������������P.3
Financial and Non-Financial
Highlights����������������������������������������P.4
Reflections on the 2019
Medium-Term Business Plan�����������P.5
TOPICS (News in Fiscal 2019)��������P.7
1

Torishima Report 2020

ESG
Environment�����������������������������������P.9
Society����������������������������������������P.12
Governance���������������������������������P.14

Directors and Executive Officers���P.16

Financial Section
Financial Data
from the Past 11 Years���������������������P.17
Consolidated Financial Statements���P.19

Corporate Data������������������������������P.24

ENTHUSIASMINNOVATION

Our success is linked to our
passion and enthusiasm
throughout our organization

Never stop challenging toprovide creative solutions to ourcustomers

Torishima Pump Mfg. Co., Ltd.

2

Meet Torishima

CSV

Financial Highlights

Creating Shared Value
Torishima conducts CSV (creating shared value) management in which we help
solve society’s challenges while making a profit for the company. Based on ourcore competence in pumping technology, Torishima is enhancing profitability andproviding a competitive edge while creating value both for society and for itself.

Energy-Efficient Solutions

Providing Safety and Reliability

We contribute to greater efficiency in plants and otherinfrastructure by supplying high-efficiency pumps and otherenergy-efficient products, and by providing energy-efficientsolutions for pumping equipment and pumping stations.

Our state-of-the-art technology ensures safety
under all conditions.

Note: Fiscal years ended March 31.

Orders Received (millions of yen)

Net Sales (millions of yen)

Operating Income (millions of yen)(millions ofof yen)yen)
Orders Received (millions

48,154 47,126(millions ofof yen)yen)
Net Sales (millions
45,381(millions ofof yen)yen)
Operating Income (millions

51,76851,30451,30451,304

43,483

43,483
43,48342,23351,76851,76844,414

48,82440,47948,824
48,82440,47940,47944,414
44,41445,38145,381

1,462
1,257

1,731
1,731

1,220

1,462
1,462

42,23342,233

1,257
1,257

1,220
1,220

373

373
373

FY
2015

Providing high-efficiency and reliable
engineered pumps that respond to
customers’ increasingly advanced anddiversified needs

Offering well-proven expertise andexperience as an EPC (engineering,procurement, construction) contractor

FY
2016

FY
2017

FY
2018

FY
2019

FY
2015

FY2019:FY
FY
FY
FY
FY
FY
FY
FY
FY
FY
Targets2015
were mostly
and private-sector
2016
2017
2018
2019
2015
2016achieved.
2017Public2018
2019
demand both grew year on year, but overseas demand
declined.

1,532

FY
2019

FY
2015

1,179.57

1,221.94 1,240.33

1,270.43

854
854

FY
2016

FY
2017

FY
2018

FY
2019

FY2019:FY
FY
FY
FY
FY
FY
FY
FY
FY
FY
Operatingincomefell due 2017
to a loss of
1.4 billion
owing
2015
2016
2017
2018
2019
2015
2016
2018
2019
mainly to the following factors: posting of a provision forloss on construction contracts and an allowance for
doubtful accounts following the bankruptcy of a customer,
declining profit at our U.A.E. service subsidiary, an
increase in sales costs, and a decline in wind power
earnings caused by natural disasters.

Equity Ratio (%)(%)
Equity Ratio (%)

1,226.56

1,270.43
1,221.94 1,240.33
1,240.33 1,270.43 1,226.56
1,226.56
1,179.57 1,221.94
1,179.57

543(2,422)

4 Businesses
Centeredon Pumps

FY
2018

(yen)
Net Assets per Share (yen)854

Projects
High-Tech
Pumps

FY
2017

Net Assets per Share (yen)

2,183
2,183

1,532
1,532

FY
2016

FY2019:FY
FY
FY
FY
FY
FY
FY
FY
FY
FY
Targets2015
were mostly
and private-sector
2015
2016achieved.
2017Public2018
2019
2016
2017
2018
2019
demand both grew year on year, but overseas demand
declined.

Net Income or Loss Attributable to
Owners of the Parent (millions of yen)
Net Income or Loss Attributableto2,183(millions ofof yen)yen)
Owners of the Parent (millions

543
543

48.7

48.9

47.3

47.7

45.4

48.7
48.7

48.9
48.9

47.3
47.3

47.7
47.7

45.4
45.4

(2,422)(2,422)Service
Solutions

Renewable Energy andthe Environment

FY
2015

FY
2016

FY
2017

FY
2018

FY
2019

FY
2015

FY
2016

FY
2017

FY
2018

FY
2019

FY
2015

FY
2016

FY
2017

FY
2018

FY
2019

FY
FY
2015
2015

FY
FY
2016
2016

FY
FY
2017
2017

FY
FY
2018
2018

FY
FY
2019
2019

FY
FY
2015
2015

FY
FY
2016
2016

FY
FY
2017
2017

FY
FY
2018
2018

FY
FY
2019
2019

FY
FY
2015
2015

FY
FY
2016
2016

FY
FY
2017
2017

FY
FY
2018
2018

FY
FY
2019
2019

FY2015:
Income fell due mainly to transient factors including
exchange-rate losses and investment losses.
FY2019:Profits fell due to factors including a loss on valuation of
investment securities and increased tax expenses,
including a reversal of deferred tax assets.

Manufactured Capital (millions of yen)

Non-Financial Highlights

Contributing to a low-carbon society
through the use of renewable energy

1,731

48,154 47,126
48,154
47,126

Maximizing the life span of plants withintegrated service solutions

Intellectual Capital (millions of yen)

Capital investment

Depreciation and amortization

R&D expenditure

Capital investment
investment
CapitalDepreciation andand2,469
amortization
Depreciationamortization

R&D expenditure
expenditure
R&D

Manufactured Capital (millions(millions ofof yen)yen)

Note: Fiscal years ended March 31.

Intellectual Capital (millions(millions ofof yen)
yen)

2,469
2,017
2,469
1,825

The Sustainable Development Goals (SDGs),
which were adopted by the United Nations in
September 2015, are 17 major goals comprising

1,561
1,391

1,599

1,561
1,561
1,391
1,391

1,599
1,0841,599

169 specific targets to be achieved by 2030.

1,636

1,627

1,636
1,636

1,825
1,825
1,627
1,627

2,017
2,017

484

484
484

883

453

453
453

482
430

430
430

353

482
482

353
353

1,084
1,084
883
883

Torishima is taking action to achieve the goals
through various initiatives related to ESG(Environment, Society, and Governance),

FY2015FY2016FY2017FY2018FY2019FY2015FY2016FY2017FY2018FY2019FY2015FY2015FY2016FY2016FY2017FY2017FY2018FY2018FY2019FY2019FY2015FY2015FY2016FY2016FY2017FY2017FY2018FY2018FY2019FY2019including the provision of high-performancepumps that support infrastructure.

In order to survive fierce global competition, we invest aggressively in production facilities, related equipment, software, and R&D.
For example, we are expanding our service bases overseas.

3

Torishima Report 2020

Torishima Pump Mfg. Co., Ltd.

4

Reflections on the 2019 Medium-Term Business Plan
Improve the company’s fundamental resilience to external environmental factors

Three-Year Overview
Order volume and sales have generally followed themade significant progress by embracing a variety of“Beyond 100” 2019 Medium-Term Business Plan. We failed

challenges in the areas of “Innovative Capabilities”, “Global

to achieve our profit goal after posting a loss of ¥1.4 billion,

Strength”, and “After-sales Service Capabilities”. However,including an allowance for doubtful accounts following theour efforts are still ongoing in the area of “Productivity andbankruptcy of a customer, during the first half of fiscal 2019,

Work Process Quality”. We developed the next medium-the plan’s final year.

term business plan based on an awareness of these facts,

Nonetheless, in a qualitative sense, we focused on the

but we’ve delayed announcing it as it needs to be reviewed

activities below and firmed up the foundation that will allow

in light of the COVID-19 pandemic.

2019 Medium-Term Business Plan (billions of yen)
FY2018FY2019Plan

ResultPlan

ResultPlan

ResultOrders received

44.0

42.2

45.0

51.8

46.0

48.8

Net sales

44.5

45.4

46.0

48.2

46.0

47.1

Operating income

2.0

1.3

2.0

1.7

2.5

1.2

Ordinary income

2.5

1.5

2.0

2.3

2.5

1.3

Net income attributable to owners of
the parent company

1.8

0.9

1.4

2.2

1.8

0.5

Orders Received (billions of yen)

51.8

48.8

42.2

Operating income (billions of yen)
Operating profit margin (%)

Net sales (billions of yen)

45.4

48.2

1.7

47.1
1.3

1.2

2018

2019

2017

2018

2019

• India: Fabricated motor modules for boiler circulation pumps.
• Indonesia: Fabricated boiler feed pumps designed to fulfill Southeast Asian specifications.
• Tianjin: Began manufacturing boiler feed pumps for waste incineration and biomass

power plants.

2017

Achievement

 se state-of-the-art equipment to boost productivity and expandUproduction capacity
Firmly establish and continuously improve process innovation• Installed new equipment to improve in-house productivity and test capabilities.

Although we moved forward with information-sharing and RPA initiatives, our efforts toboost operational efficiency remain insufficient.

After-Sales Service Capabilities

Achievement

Cover more regions (Americas, Southeast Asia)• Newly started: Thailand, Philippines, Malaysia, Taiwan, U.S., Saudi Arabia• Expanded: Singapore, Dubai, U.K.
• Also expanded our domestic service network.

Increase number of supervisors and train them
Have service solutions business account for 35% or more• Achieved target of service solutions business accounting for 34% to 36% (average:35%) of all sales.

2.5
2018

FY

FY

 uild an optimal global production system
B(plants in Japan, China, Indonesia, India)

Increase number of products that can be serviced

3.5

2.9

2017

Achievement

Productivity, Work Process Quality

us to achieve our long-term goals. As part of that effort, we

FY2017

Global Strength

2019

Build a flexible corporate infrastructure(mechanisms, people)

FY

Governance2019 Medium-Term Business Plan

Improve viability of Board of Directors

Specific targets and Key achievements over the plan’s 3-year term

• Put in place a system for reforming the Board of Directors as part of CGC changes.

Introduce performance-based compensation system

Develop world-leading products that offer energy
efficiency, safety, and reliability,
and create a business model to this end

Innovative Capabilities
Enhance core pump products, introduce new products• To thoroughly meet customer needs, enhanced products including pumps for power

plants, pumps for desalination plants, high-capacity/high-pressure water transmission
pumps, and drainage pumps for dealing with sudden and violent rainstorms.
Order volume grew as those products were well received by the market.

 evelop new systems for the after-sales service market by utilizingDtechnologies such as IoT and 3D• Developed and began marketing TR-COM, an IoT-enabled rotating equipment monitoring

system. Currently working to build alliances with partners in related industries.

5

Torishima Report 2020

Achievement• Introduced transfer-restricted stock compensation for directors.

Strengthen management of worldwide subsidiaries

Human Resources
Achievement

Achievement

Reform working styles• Launched the Work-Style Reform Promotion Section and moved forward with reforms

targeting operations, systems, and employee awareness.

Promote diversity(improve work environment for women and foreign nationals)• 
Strove to put in place a work environment that’s satisfying for all employees, for example

by promoting diversity and expanding our in-house childcare services.

Hire and foster globally minded people• Hired foreign nationals in an active and ongoing manner to address Japan’s shrinking

workforce.

Torishima Pump Mfg. Co., Ltd.

6

T O P I C SNews in Fiscal 2019
Torishima Holds
100th Anniversary Ceremony
On August 1, 2019, Torishima celebrated its 100th
anniversary in a ceremony in a theater in the city of
Takatsuki.
As we enter our second century of businessunder the banner of Torishima’s new Mission and
Vision, we wish to express the sincerest gratitude to
our many predecessors and their marvelous
achievements, and to our many customers andbusiness partners for their support. We will continue
to pursue growth towards an ongoing contribution
to a better society.

President Harada speaks at the 100th anniversary celebration

Construction Moving Along at
New Head Office Factory

beginning to take shape.
Construction continues with a completion target of
February 2021.

Reforming Working Styles
In April 2018, we launched the Work-Style Reform
Promotion Section, which leads three reforms
aimed at improving working styles: operational
reform, systemic reform, and awareness reform.
First, operational reform is focused on advancing apaperless work environment. Through improvements
such as digitalizing in-house paper media and using
computers for formerly paper-based authorization
procedures, it is becoming possible for employees
to work anywhere. This has proved particularly
helpful in allowing employees to work from home
after the Japanese government declared a state of
emergency in April 2020 to slow the spread of
Covid-19.
Second, under systemic reform, we are looking in to
new HR systems. In order to make employees’ jobs
more rewarding and raise their productivity, we arebuilding mechanisms that will allow us to positively
evaluate those who take the initiative and makeprogress.
Third, under awareness reform, the new head office
factory will incorporate flexible office spaces thatfacilitate things like responding to change andbonding with fellow workers. The facility will also begiven a split-level layout that eliminates walls
between company divisions.

State of construction as of mid-July 2020

Construction on the new head office factory began in
October 2019 with ground improvement, excavation,and foundation work such as concrete placement.
After this was completed at the end of March 2020,
steel framing began in April and the facilities are

7

Torishima Report 2020

The new head office factory’s split-level layout

Expanding Regional Coverage in
Service Solutions Business
While continuing to meet maintenance demand forthe pumps we have delivered all over the world, weare expanding and improving our service solutions
business to quickly and flexibly respond to wideranging customer needs by establishing service
bases in places such as Southeast Asia and the U.S.
Recent years have seen us establish service basesin Thailand, the Philippines, Malaysia, Taiwan, theU.S., and Saudi Arabia. We also upgraded ourPhilippines representative office to a branch of
TSSA in April 2020, and expanded service facilitiesin Singapore and Dubai.

Philippine Branch, Torishima Service Solutions Asia Pte. Ltd. (TSSA)

TR-COM System Boosts
Service Capabilities
TR-COM is a simple system in which customers
merely install a dedicated sensor that allows themto harness the power of IoT in monitoring rotatingmachinery. Since its development and full-fledged
release in 2018, TR-COM has been a hit withcustomers. An easy-to-install wireless sensor isused to periodically gather vibration data frompumps and other rotating machinery, thus allowing
users to monitor the state of their machinery. Data iscollected from the sensors with a smartphone andcan be managed using the online TR-COM server.
Normally, to monitor the state of machinery withvibration data requires experience and specialized
knowledge. But with TR-COM, anyone can easily
carry out advanced monitoring. TR-COM can also
be linked with other monitoring systems, allowing
data gathered with TR-COM to be used on thecustomer’s other systems.
TR-COM continuously improves the accuracy of
anomaly detection by using data gathered fromaround the world. To further expand our services, infiscal 2020 we plan to start the sale and rental of IoT
gateways that automatically gather data.

TR-COM website screen

Enhancing Core Pump Products
In order to thoroughly respond to the needs of various
markets, we are boosting product lineups mainly inhigh-pressure seawater pumps for desalination
plants, high-head, high-capacity pumps for watersupply plants, sewage-water transmission pumps
for sewerage plants, and condensate pumps for
power plants.
In increasingly widespread need in recent years areenergy-efficient high-pressure seawater pumps fordesalination plants. These pumps represent a key
strength of Torishima and are crucial pieces ofequipment at RO (Reverse Osmosis) method ofdesalination. That’s why we developed and released
the new MHH, whose improved pumping efficiency,
reliability, and ease of maintenance have helped fuelgrowing orders from customers.
Due to the increasing demand for water transmission
pumps that carry large volumes long distances
through pipelines in regions such as the Middle
East, we developed the CDM, which realizes highhead, high capacity, and high efficiency among thebest in the world. We have been receiving morelarge orders for CDM models for projects incountries like Saudi Arabia.

MHH high-pressure seawater
pump for desalination plants

CDM high-head, high-capacity
pump for water supply plants

Torishima Pump Mfg. Co., Ltd.

8

ESG

Environment

Torishima focuses on contributing to the environment through its products
and business activities, while also lowering the environmental burden of allits business activities.

Status of Fiscal 2019
Environmental Objectives

Torishima
Environmental Policy

Pump Business, Renewable Energy
and the Environment Business—Philosophy—
At Torishima, we believe that protecting the Earth’s
natural environment is a vital task that must be
addressed by all mankind. For the sake of theplanet and all of its inhabitants, our goal must be
to cultivate a naturally beautiful global environmentthat is conducive to comfortable living. Throughour pumps and other eco-friendly products, we
supply environmentally sustainable systems thatare engineered to enrich living environments
everywhere. We conduct production activities so as
to be in harmony with environmental demands, and
we offer products that have minimal environmentalloads. In this way, we are working to bring aboutdevelopmentally sustainable societies that can
support a healthy global environment well into the
future.

—Activities—
To put the foregoing philosophy into practice,
we undertake the following activities:
1) We develop and supply highly efficient, environmentallyfriendly pumps that contribute to energy savings;
2) We develop and supply wind power and hydropower
generation systems that use natural energy sources.
This contributes to a reduction of CO2 emissions;3) We provide technologies targeting the reuse of wastematerials, as a way of enhancing the recycling of
natural resources;
4) We actively promote reductions in environmental loads
and prevention of environmental contamination, basedon environmental assessment results;5) We continually strengthen our environmental
management systems in order to raise environmental
performance;6) We comply with environmental laws, regulations, andother applicable obligations. We also formulate andcomply with our own in-house rules;
7) Throughout our production activities, we seek topreserve energy and natural resources and promote
recycling, waste reduction, and proper management ofchemical substances. These actions serve to reduce
environmental burdens.
April 1, 2020
Kotaro Harada, President and CEO,Torishima Pump Mfg. Co., Ltd.

9

Torishima Report 2020

By developing and supplying environmentallyfriendly products such as energy-efficient pumps(high efficiency boiler feed pumps, Eco-Pumps, andlarge high-efficiency pumps), wind power systems,
and mini/ micro hydropower systems, Torishimacontributed to saving energy and reducing CO2
emissions, as shown in the graph below.
CO2 reductions (t-CO2)
CO2 reductions from mini/micro hydropower systems (t-CO2)
CO2 reductions from high-efficiency pumps (t-CO2)
CO2 reductions from wind power systems (t-CO2)t-CO2
600,000
500,000

2,673

2,742

3,917

4,470

449,142

467,195

491,229400,000
420,750

2 Reducing Waste
In fiscal 2019 at the head office factory, the amount ofwaste per production unit was down 11.4% year-onyear, the amount of waste also decreased by 13.7%.
Waste per production unit (kg/1 million yen) andtotal waste (tonnes)
Per production unit: (kg/1 million yen)
1.0

Tonnes
40.0

30.0

0.81

0.80

0.79

29.3

29.4

30.6

Down
11.4%

0.70

Down 26.4
13.7%

20.0

10.0

0

FY2016FY2017FY2018Waste per production unit

FY2019FY2017FY2018FY2019

1-Designated Chemicals
In fiscal 2019, the total amount of discharged andtransferred chemical substances covered by the
PRTR (pollutant release and transfer register)
system in Japan increased by 33% year-on- year.
We keep striving to estimate the required paintvolumes more accurately, while reducing the amountof cleaning agents we use.

1 Saving Resources and Energy

Electricity 93.1%

5.7
FY2016

Toluene(down 0.3%)

Torishima head office factory

CO2 emissions (year-on-year)

4,215t-CO2 (up 7.1%)
26.4tonnes (down 13.7%)

7.8

Recycled resources (year-on-year)

1.1

5.9

5.6

3.3

3.2

4.4

FY2018FY2019

XyleneOutput(up 2.9%)

Waste (year-on-year)

1.1

FY201745,475m3
Tap water: 23,010m3
Industrial-use
water:

0.9

1,238tonnes (down 3.3%)

Ethylbenzene

Environmental Friendlinessthroughout the Value Chain

CO2 emissions per production unit (kg/1 million yen)

Torishima’s freight volume is below that of a specified
consigner, as designated under the Japanese Act
on the Rational Use of Energy. Nevertheless, we
implement various measures to further reduce freight
volume. We have set a target in our environmental
management program of reducing freight volume
tonne-km* between shippers and suppliers in aneffort to lessen our environmental impact.
Specifically, we are raising the load efficiencies offreight trucks and pursuing well-planned freighting
to prevent sporadic shipments. These and othersteady day-to-day efforts enable us to achieve
company-wide improvements in transport efficiency.

CO2 emissions from head office factory (t-CO2)*Tonne-km = Freight weight (tonne) × transport distance (kilometer)

Energy Consumption and Input

CO2 emissions (t-CO2) andCO2 emissions per production unit (kg/1 million yen)t-CO2

Per production unit: (kg/1 million yen)
4,233

4,270
3,937

4,000

3,000
117.2

115.4

2,000

Up
7.1% 4,215
200

Up
111.5
101.0 10.4%

150

100

50

1,000

0

9.4

5.0

0

In fiscal 2019, total CO2 emissions from the head
office factory increased by 10.4% year-on-year, andCO2 emissions per production unit rose by 7.1%.

Up
33%

15.0

10.0

Initiatives for Reducing Environmental
Burden in Production Activities

Utility gas 5.4%

0.0

1.4

FY2016

Gas oil 0.2%

0.6

3 Reducing Discharge of PRTR Class

100,000
0

Kerosene 1.3%

Water consumption (year-on-year)

Tonnes20.0

75,9192,932kL (up 6.9%)

0.8

Waste

200,000

76,973

Energy consumption,
converted into crude oil (year-on-year)

0.2

PRTR Class 1-designated chemicals released andtransferred (tonnes)

85,835Torishima head office factory

0.4

300,000

85,899Input

FY2016FY2017FY2018FY20190

Torishima fully understands the impact its businessactivities place on the environment. Ever aware ofthis impact, we do all we can to reduce theenvironmental burden at every stage of ouractivities, from product development to disposal. In
fiscal 2019 at the head office, CO2 emissions
increased by 7.1% year-on-year, waste decreased
by 13.7%, achieved the targets.

Torishima Pump Mfg. Co., Ltd.

10

ESG
New Environmental Targets
in Service Solutions Business
Torishima’s efforts to reduce CO2 emissions go
beyond supplying high-efficiency pumps—they
also include after-sales service. For the second halfof fiscal 2019 and beyond, we have set a newenvironmental objective of reducing CO2 emissions
through product maintenance.
Customers can bring their old Torishima pumps into
our service facilities for maintenance. The serviced
pumps regain their efficiency and consume less power.
To quantify the efficiency gains that come withpump servicing, we measured the performance ofboiler feed pumps before and after servicing. Using
an average efficiency improvement value, we canestimate how much our customers can reduce their
CO2 emissions following a servicing.
Reducing CO2 emissions through product maintenancetonnes
8,000

6,700
5,600

6,000

4,792

4,000
2,000
0

FY2019 Plan

FY2019 Result

FY2020 (Plan)

In fiscal 2020, we will also evaluate the performanceof our REDU (Re Engineering and Design Up)
maintenance service. REDU aims to boost theefficiency and prolong the life of pumps throughrestoring, improving, andreplacing obsolete or wornout parts.

Introducing Digital Manifests
and Service Agreements
In autumn 2019, Torishima began using digitalmanifests and digital service agreements. Previously,
Torishima used paper-based manifests. By digitizing
them, we can create a database and speed upadministrative tasks. Digitizing also links theconnection between service agreements, manifests,
and permits, which allows us to strengthen legal
compliance.

Benefits • Reduces the time and effort required tocreate and manage manifests• Automatic compilation improves efficiency
of analysis and government reporting• Prevents errors with data entry andforgetting to update deadlines

11

Torishima Report 2020

Torishima strives to be a trusted company in its relationship with society byfulfilling its social responsibilities. To this end, we communicate in every
way possible with our stakeholders.

SocialImprovements Made in Fiscal 2019
1 Saving Resources and Energy

Torishima’s Response to the Covid-19 Pandemic

Torishima is making steady efforts to reduce theamount of electricity it uses. These efforts include
optimizing electricity usage by eliminating unnecessary
pump tests, optimizing compressor operating times(stopping operation on non-working days and longholidays), repairing compressor air leaks, andturning off unused lights in plants and offices.
Nevertheless, Torishima’s plants electricity usage infiscal 2019 increased by 6.8% year-on-year. To
address this, we will boost our capacity for analyzing
and evaluating the effectiveness of our energy-saving
initiatives at each stage of our business activities.

Suppliers,
Business
Partners

2 Reducing General Waste Disposal Costs

Relationship with Customers

Much of the waste oil from Torishima plants used tobe disposed of as industrial waste. In the second
half of fiscal 2019, we reviewed our disposal
subcontractor with a view to reducing disposal
costs and selling waste as a valuable resource. As aresult, we were able to cut disposal costs by 43%
compared to the same period last year.
We carefully separate waste oil to be disposed of as
industrial waste from waste oil that can be converted
into valuable resources. In this way, the entire
company is becoming more focused on recycling
and able to process industrial waste appropriately.

Customers
Long-term trust

Employees
Employment,
human resource
development

Stakeholder
Engagement

Local
Communities
Contribution tosociety

Fair dealings

Shareholders,
Investors
Appropriate disclosure

The Covid-19 pandemic began spreading worldwide from the endof 2019. In response, Torishima has been doing all it can to securebusiness continuity, while placing the utmost priority on infection
control and the safety of all stakeholders—including customers,
business partners, investors, and employees.
Pumps are indispensable to infrastructure such as water supply andsewerage systems, power plants, and factories. That’s why, withthe exception of temporary closures in a few regions, Torishima’s
worldwide plants have continued to operate during the pandemic.
It is our mission as a pump manufacturer to continue fulfilling our
responsibilities to protect water and power-related infrastructure,
while focusing on comprehensive risk control.

We strive to boost customer satisfaction in every way
possible; for example, by providing high-value-added
products and services, conducting thorough sales
activities, joining worldwide trade shows, holding
engineer-led seminars, and sharing information on
our website.

Improvement Plans for Fiscal 2020
At present, all the spray cans of the cleaning agentsused in our plants are disposed of as industrial waste.
By properly sorting and managing these used spraycans, we are aiming to convert them into valuable
resources and reduce the amount sent to final disposal.
Specifically, we are:
1. clarifying the rules for sorting industrial waste, suchas metal waste containing other materials, andplastic waste.
2. monitoring the status of waste storage and givingout awareness-raising notices when necessaryduring plant patrols
3. updating can-press machinery (installing newmodels) and managing its operation

Relationship with Communities
Harada Memorial Foundation
The Harada Memorial Foundation is a public interest
incorporated foundation. In 1981, then-president
Ryuhei Harada launched the foundation with apersonal contribution. The foundation provides grants
to individuals and organizations engaged in researchin natural science domains connected to the pumpindustry, such as hydraulics and fluid mechanics. It
also offers scholarships to young people.

3 Optimizing the Amount of Chemicals Handled

The health of our employees and subcontractors
is a top priority, as is the environment in residential
areas next to our facilities. That is why we have beenswitching to cleaning agents that are free of toxic
substances. We are also reducing the amount ofcleaning agents we use, by recycling a portion of them.

and investors can get a deeper understanding of
our corporate value and our management plan forsustainable growth. Our efforts include general shareholders’ meetings, financial results briefings for
institutional investors and analysts, shareholder
newsletters, and the Torishima Report.

At the Plant Maintenance Show in Tokyo, we showcased
service solutions centered on the new TR-COM system

Relationship with Business Partners
To maintain a good relationship with our subcontractor
partners, Torishima selects such partners on the basisof transparent and impartial transactions. We alsoseek to establish equal partnerships with them while
complying with all related laws and regulations.
In order to improve the level of occupational safety
and health at both Torishima and our subcontractor
partners, we hold a variety of events tailored to different
workplaces and aimed at eliminating workplace
hazards and accidents. These include joint Torishima–
subcontractor occupational safety and health meetings
held at manufacturing sites, safety conferences atsales offices, and hazard prevention workshops atconstruction sites.

Relationship with Shareholders and Investors
We do everything possible to release company information in a timely, fair manner so that shareholders

Number of research grants
Number of scholarships

296 cases

1,289 students(Total from 1981 to fiscal 2019)

Taking Part in Takatsuki Industry Festival
The Takatsuki Industry Festival is an annual event
held in the city of Takatsuki, Osaka—where Torishima
has its head office. It is organized by the city of
Takatsuki and the Takatsuki Chamber of Commerceand Industry. At the event, Takatsuki-based companies,
stores, and other organizations set up exhibitionbooths that are open to the public. There are also
hands-on workshops and food stalls, which make theevent fun for the whole family.
At the 2019 event, Torishima took the opportunity toengage with local citizens. The Torishima booth
explained pumps and their uses in a way that was fun
and engaging, even for children. We also showcased
Takatsuki’s rainwater pumping station, where
Torishima pumps are at work. Torishima’s mascot,
Torishima Pump Mfg. Co., Ltd.

12

ESG
Certified site: Torishima Pump Mfg. Co., Ltd. head office factory
Date

Employee Education
Torishima actively offers educational opportunities
and support, such as providing technical training on
pumps and on-the-job training for new employees.
We also help employees obtain a Professional
Engineer qualification or another national technicalqualification. In addition, we provide distance learningand seminars by outside organizations to boost
employees’ skills. “Seeing is believing” is the motto
for Torishima’s overseas on-site training for young
employees. The goal of this intensive training programis to enable employees to identify customer needs
and the seeds of new business beyond nationalboundaries.

Diversity
For Torishima to grow sustainably ina global market, personnel diversity
is a must-have. Torishima actively
hires non-Japanese staff and works
to foster employees with a global
perspective, so that we can strengthen
our competitive edge in the global
market. The percentage of nonJapanese nationals in the Torishima
Group was 44.2%*.
We also provide employees with support for raisingchildren. In addition to an in-house daycare center,
we strive to create an environment conducive toemployees taking maternity leave and parental leave.
As a result of such measures, in 2017 Torishimareceived the “Kurumin” mark of certification from the
Osaka Labor Bureau of the Ministry of Health, Labor,and Welfare in recognition of the various ways inwhich Torishima supports employees in balancing
work and child-raising responsibilities.
Torishima also actively hires people with disabilities.
In fiscal 2019, the percentage of employees withdisabilities at Torishima was 2.85%. Our goal is to be
a company with a vibrant work environment where all
employees find their work rewarding.


13

Torishima Report 2020

Standard/Certification body

April 2010–
March 2019

• JISHA OSHMS standards• JISHA (Japan Industrial Safety and
Health Association)

April 2019• ISO 45001:2018• Safety and Health Management
System Audit and Certification
Center, JISHA

Safety and Health Policy
Basic Philosophy
Torishima contributes to society through businessactivities that include the development andmanufacture of pumps and related products. At thesame time, we regard creating a safe, healthy
environment—one where employees can work free ofworries and where their health is maintained or evenenhanced—as the basis of our QCD (quality, cost, anddelivery) actions. We have thus formulated a basic
policy on safety and health and are building a cultureof safety and health that aims for a virtuous cycle.
And we seek to be a vibrant company that continues
to grow forever.

Basic Policy
1. We are building an occupational safety and healthmanagement system based on ISO 45001 and aim
to raise the level of safety and health throughongoing improvement activities.
2. We identify hazardous factors in the workplacethrough risk assessments and take countermeasureson an ongoing basis so that we can reduce risks toan absolute minimum.
3. We comply with all safety and health-related laws
and regulations and company standards in aneffort to further our safety and health management.
4. We seek to create a comfortable workplace foreveryone concerned by ensuring effective
communication among Torishima employees andamong other people working at Torishima sites.
5. We strive to prevent incidents and aim for zeroaccidents and disasters by raising employees’
awareness of safety and health through educationand training.
6. In executing safety and health activities, we invest
the appropriate management resources andimplement effective improvements on an ongoingbasis.
April 1, 2020

Kotaro Harada, President and CEO
Michihiko Oie, OHSMS General Manager

The accounting auditor cooperates with the Audit
and Supervisory Committee and the Internal Audit
Department to efficiently conduct effective audits
while exchanging information and views. The
Internal Audit Department, which is independent
from business operations, conducts internal audits
from an unbiased perspective and with a focus on
the efficiency, effectiveness, and legality of business
operations. It also audits overseas Torishima Group
companies in light of the globalization of Torishima’s
business activities.
For the future, Torishima aims to raise corporate
value by increasing the effectiveness of the Boardof Directors. We will also enhance management ofdomestic and overseas subsidiaries in an effort tostrengthen governance.

Corporate Governance Structure
Since June 26, 2015, Torishima’s corporate
governance structure has included an Audit andSupervisory Committee. Under this structure,
directors who are members of the Audit andSupervisory Committee are given voting rights on
the Board of Directors. This strengthens thesupervisory functions of the Board of Directors
and enhances Torishima’s corporate governancestructure.
Four independent outside Audit and Supervisory
Committee members provide insightful advice tothe Board of Directors. Each Committee member
has specific expertise in the field of business,legal affairs, or accounting. Their input contributes
to the formulation of management policies andhelps improve business performance.

Torishima’s Governance Structure
General Shareholders’ Meeting
Company Units

To ensure a safe work environment with thecooperation of employees and other relevant
personnel, Torishima has been certified for the
ISO 45001 occupational health and safety
management standard and is carrying out healthand safety activities.

Relationship with Employees

Governance

Safety and Health Policy, ISO 45001

Appointment/
Dismissal

Opinion Statements(on nomination andcompensation of directors)

Appointment/
Dismissal

Suggestions/
Reporting

Supervision/
Auditing

Board of Directors(all directors)
Selection/
Supervision

Organizations in Charge of Conducting Business

Toripon, appeared on the special event stage and was
the center of attention for the kids .

To grow sustainably and raise corporate value in the medium to long term,
Torishima is strengthening its corporate governance and its framework forrisk management, internal control, J-SOX compliance, and other items.

Audit and Supervisory Committee(directors who are members of the Audit
and Supervisory Committee)

Reporting
Collaborating

Appointment/
Dismissal

Accounting
Auditor
Auditing

Deliberation/
Reporting

Collaborating

President
Prior Discussions

Collaborating

Instruction

Executive Officers
Committee

Instruction

Internal Audit Department

Instruction

Compliance Committee
Risk Management Committee
Safety and Health Committee

Reporting

Reporting

Guidance/
AdviceAuditing/Instruction

Executive Officers
Business Divisions

Auditing/
Instruction

Administrative Divisions

Quality Committee
Environment Committee

Auditing/Instruction

Reporting/Consultation

Group Companies*As of March 31, 2020

Torishima Pump Mfg. Co., Ltd.

14

Directors and Executive Officers
Directors (As of June 26, 2020)
Maximizing our experience and knowledge to raise the medium- and long-term corporate value of the Torishima Group

Compliance Structure“Never lose the public trust, even if monetary loss
proves unavoidable.” In line with this corporate
philosophy, Torishima has formulated a basic policy
to ensure compliance in business management.
The policy covers the observance of laws andregulations, while also stipulating fair and impartial
behavior and prohibiting discrimination and actsthat violate social ethics. There are further
stipulations on maintaining discipline and order,
and on remedial action to take when violations of
the policy occur.
Torishima works to thoroughly communicate thecontent of the policy to all directors and employees,
so that they understand and follow it properly.

Torishima also has a Compliance Committee and a
consultation service for discussing matters such as
workplace ethics and related laws and regulations.

Duties of the Compliance Committee
1. Develop legal and ethical compliance systems
for Torishima and its subsidiaries, which together
make up the Torishima Group
2. Provide guidance and advice to businessexecution divisions regarding the results ofinternal audits of corporate ethics
3. Provide guidance and advice regarding
educational planning and activities related tocorporate ethics
4. Provide guidance and advice to the internal
consultation service regarding whistle-blowing

ISO 9001 Certification

ISO 14001 Certification

Torishima has been certified for ISO 9001, aninternational standard on quality management
systems. This assures we deliver products,
engineering, and maintenance services of a qualitythat satisfies customers and earns their trust.

Torishima actively pursues ISO 14001 certification,
an international standard on environmental
management systems, and strives to protect theenvironment. All of our bases in Japan operateenvironmental management systems that comply
with ISO 14001:2015.

Date

Name

February
1997

Torishima Pump Mfg. Co., Ltd. head office
factory; Torishima Tokyo branch; Osaka,
Kyushu, Nagoya, Sapporo, Sendai, Hiroshima,
Takamatsu, and Saga offices; Okinawa andYokohama sales offices; (Japan)

Date

More and more of Torishima’s overseas subsidiaries and branches
have been achieving ISO 9001 certification.

Basic Quality Philosophy

Earning customer trust, providing satisfaction

July
1999

Name
Torishima Pump Mfg. Co., Ltd.
head office and factories (Japan)

March
2004

P.T. Torishima Guna Indonesia
P.T. Torishima Guna Engineering (Indonesia)

May
2005

Kyushu Torishima Co., Ltd. (Japan)

September
2010

Torishima Service Solutions Europe Ltd.
(U.K.)

President andRepresentative Director

Kotaro Harada
Since being appointed
president and representative
director in June 2006,
Mr. Harada has
demonstrated strong
leadership at the core of
Torishima’s management.
He plays an indispensablerole in raising corporate
value over the medium andlong term.

Director (Member of Audit
and Supervisory Committee),
Chair of Audit andSupervisory Committee

Yutaka Fukuda
Mr. Fukuda draws on his
experience and knowledgein accounting, generalaffairs, and internal auditing
to strengthen Torishima’s
governance and compliancesystems.

Quality Policy
1. We place top priority on abiding by laws, regulations, andrules, and on giving customers safety and reliability.
2. In order to provide customers with products and services ofvalue, we make proposals and respond with a clear
understanding of customers’ needs and expectations.
3. We clarify and execute all items stipulated in contracts withcustomers.
4. We constantly create and improve on quality in all processes.
5. We set quality targets, and plan and implement the concretemeasures to realize these targets.
6. To ensure that non-conforming products and customer
complaints never happen, we conduct thorough design
review and initial-product quality control.
7. In the case of non-conforming products, we respond
appropriately and thoroughly.
8. In the case of non-conforming products or customer
complaints, we analyze them from a range of viewpoints toensure they never happen again.
9. We systematically develop employees’ capabilities as partof fostering them into self-directed individuals.
10. We constantly improve our quality management system toensure its maximum effectiveness.
April 1, 2020

Kotaro Harada, President and CEO

Representative Director

Representative Director

Director

Koichiro Hamu

Tetsuya Kujima

Hiroto Takahashi

Besides his main duties inengineering, Mr. Hamu wasin charge of planning anddeveloping new products
and boosting Torishima’s
overseas marketing
capabilities as head of areas
including research anddevelopment and global
sales. Since April 2020, he
has been leading reform
efforts as general manager ofthe Administration Division.

After being engaged in areas
such as wind power,
procurement, andmanufacturing, in April 2020
Mr. Kujima was appointed
general manager of the
Public Sector Division,
which meets society’s needs
by, for example, preventing
flooding of rivers andupgrading aging pumps.

In addition to his main
duties in personnel andgeneral affairs, Mr. Takahashi
has been leading shareholder
and institutional investor
efforts through work that
includes running generalshareholders’ meetings andheading IR activities.

Director (Member of Audit
and Supervisory Committee)

Director (Member of Audit
and Supervisory Committee)

Director (Member of Audit
and Supervisory Committee)

Director (Member of Audit
and Supervisory Committee)

Akira Tsuda

Shiro Hakukawa

Hiroshi Akiyama

Toshimasa Iue

Outside director

Outside director

Outside director

Newly appointed

Mr. Tsuda has ample
experience, knowledge, andsuccess working at othercompanies as a director andin other management
positions. From an objective
perspective, independent ofTorishima’s management
members, he provides
sound proposals and advice
to the company’s Board of
Directors.

Mr. Hakukawa has
specialized knowledge intaxes, finance, andaccounting gained throughyears of experience as acertified public accountant.
He brings strengthened
oversight and transparency
to Torishima’s management.

As a lawyer, Mr. Akiyama
possesses expertise andbroad experience incorporate law andgovernance. From an
objective perspective,
independent of Torishima’s
management members, heprovides sound proposals
and advice to thecompany’s Board of
Directors.

Executive Officers (As of June 26, 2020)
May
2012

Torishima Tokyo branch; Osaka, Sapporo,
Sendai, Nagoya, Takamatsu, Hiroshima,
Kyushu, and Saga offices; Yokohama andOkinawa sales offices (Japan)

August2012

Torishima Pump Mfg. Co., Ltd.
Qatar Project Office (Qatar)

January
2013

Torishima Pump Mfg. Co., Ltd.
Middle East Project Office (U.A.E.)

July
2013

Torishima Pump (Tianjin) Co., Ltd. (China)

Chief Executive Officer

Kotaro Harada

President

Deputy Chief Executive Officer

Gerry AsheHead of Global Business

Senior Managing Executive Officers

Koichiro Hamu
Alister Flett
Tetsuya Kujima

General Manager of Corporate Strategy Bureau*, General Manager of Administration Division
General Manager of Corporate Strategy Bureau*, General Manager of Global-Sector Division
General Manager of Public-Sector Division
*The Corporate Strategy Bureau is under joint management.

Managing Executive Officers

Yoshinori Hirusawa
Yoshiaki Inuyama

General Manager of Private-Sector Division
Public-Sector Division

Executive Officers

Masahiko Ishida
Michihiko Oie
Hiroto Takahashi
Mike Choi
Takuya Ono
Yasuo Yanagawase
Hideki Tsukahara
Akihiro Wada
Jun ItouAtsuo Mabuchi
Satoshi Tomizawa

General Manager of Engineering Division
General Manager of Production Division
General Manager of General Affairs Department
Regional Director of TGT Hong Kong & Vietnam, Managing Director of Torishima (Hong Kong) Ltd.
General Manager of Singapore Office, Chairman of Torishima Service Solutions Asia
Osaka Branch Manager, General Manager of Osaka Public-Sector Sales Department
General Manager of Tokyo Private-sector Sales Department
General Manager of Procurement Department
General Manager of Information System Office
General Manager of Accounting Department
General Manager of Middle East Office, General Manager of Pump Sales Department,
General Manager of Saudi Arabia Representative Office
Tokyo Branch Manager, General Manager of Tokyo Plant Sales Department

Akihiro Suezawa
15

Torishima Report 2020

Outside director

Mr. Iue has been appointed
as an outside director andmember of the Audit andSupervisory Committee.
Having worked in top
management positions
including managing director
and possessing a wealth ofexperience and knowledge
in running companies and avast network of personalconnections, he is expected
to provide the Torishima
Group with valuable opinions
and advice on management.

Torishima Pump Mfg. Co., Ltd.

16

Financial Data from the Past 11 YearsBusiness
performance2
Financial status

FY2010FY2011FY2012FY2013

FY2014FY2015FY2016FY2017FY2018FY2019FY2019Orders received

58,62432,97439,57940,97552,84742,87851,304

43,48342,23351,76848,824447,926

Net sales

45,00849,88046,45345,97445,98546,50140,47944,41445,381

48,154

47,126432,348

Gross operating income

9,548

9,257

8,959

8,015

8,320

9,162

9,191

10,538

10,954

11,763

12,310112,935

Operating income or loss

3,258

3,127

2,286

517

(945)

400

373

1,462

1,257

1,731

1,220

11,192

Ordinary income or loss

3,833

3,673

2,929

1,389

(632)

793

(1,663)

1,871

1,549

2,275

1,324

12,146

Net income or loss attributable to owners of the parent

2,609

1,892

1,497

943

442

405

(2,422)

1,532

854

2,183

543

4,981

Gross profit margin (%)

21.2%

18.6%

19.3%

17.4%

18.1%

19.7%

22.7%

23.7%

24.1%

24.4%

26.1%

26.1%

Operating profit margin (%)

7.2%

6.3%

4.9%

1.1%

(2.1)%

0.9%

0.9%

3.3%

2.8%

3.6%

2.6%

2.6%

ROE (return on equity) (%)

9.5%

6.1%

4.8%

2.9%

1.3%

1.1%

(7.5)%

4.7%

2.6%

6.4%

1.6%

1.6%

ROA (return on assets) (%)

4.0%

3.1%

2.5%

1.4%

0.6%

0.6%

(3.7)%

2.3%

1.2%

3.0%

0.7%

0.7%

Total assets

65,641

61,17860,812

68,232

68,062

71,987

66,19867,71971,171

72,67472,961

669,366

Net assets

31,08330,96831,77533,602

34,52436,532

32,79433,71334,01734,94733,470307,064

Equity ratio (%)

47.2%

50.3%

51.3%

48.2%

49.9%

50.0%

48.7%

48.9%

47.3%

47.7%

45.4%

45.4%

Japan

20,93918,703

17,281

18,07020,096

19,104

17,05922,15325,05824,471

25,799236,688

Asia

5,408

11,196

13,125

10,259

9,042

11,124

11,307

8,612

8,391

8,168

8,306

76,201

Middle East

16,24814,36911,43011,887

9,753

11,1158,225

10,94010,064

11,196

8,929

81,917

Others

2,412

5,609

4,615

5,758

7,092

5,156

3,887

2,708

1,866

4,318

4,090

37,522

Overseas ratio (%)

53.5%

62.5%

62.8%

60.7%

56.3%

58.9%

57.9%

50.1%

44.8%

49.2%

45.3%

45.3%

Public sector

14,575

9,973

11,60010,971

15,923

12,001

16,013

15,913

13,914

16,434

18,813

172,596

Private sector

4,517

4,921

6,205

5,733

7,144

6,943

8,396

7,973

8,914

9,258

9,339

85,678Overseas

39,532

18,07921,772

24,27029,77923,93326,895

19,595

19,40326,075

20,672

189,651

Public sector

15,46913,76011,317

12,277

13,797

12,957

9,980

13,832

16,621

15,931

16,412

150,568

Private sector

5,468

4,942

5,963

5,792

6,299

6,146

7,078

8,320

8,436

8,540

9,387

86,119Overseas

24,06931,17629,172

27,90425,88827,397

23,41922,261

20,322

23,683

21,326

195,651

Public sector

10,316

6,528

6,811

5,505

7,631

6,675

12,707

14,78812,082

12,585

14,987

137,495

Private sector

2,477

2,455

2,698

2,639

3,484

4,281

5,598

5,251

5,729

6,447

6,399

58,706

Overseas

51,32938,23130,832

27,19831,08927,625

31,101

28,436

27,51629,90829,253

268,376

SG&A (selling, general, and administrative expenses)

6,290

6,130

6,673

7,497

9,265

8,761

8,818

9,075

9,697

10,032

11,090101,743

SG&A-to-sales ratio (%)

14.0%

12.3%

14.4%

16.3%

20.1%

18.8%

21.8%

20.4%

21.4%

20.8%

23.5%

23.5%

851

961

1,096

1,231

1,646

1,636

1,561

1,599

1,636

1,825

2,017

18,504

1,311

2,297

2,224

3,083

2,139

1,221

1,391

1,084

883

1,627

2,469

22,651

730

567

606

691

678

658

484

453

430

482

353

3,238

Cash flow from operations

4,439

735

2,661

3,513

(4,086)(1,194)

5,000

6,496

587

3,769

4,207

38,596

Cash flow from investments(3,084)(75)(1,269)(3,966)(4,498)

(345)

(415)

1,376

(1,105)(1,438)(1,976)(18,128)

Cash flow from financial activities

1,678

590

(2,371)

4,356

(112)

2,120

(1,624)(4,140)

1,153

2,150

(1,672)(15,339)

67.45

53.38

33.64

15.74

14.61

(88.13)

56.15

31.50

80.18

20.07

0.18 dollars

1,097.71

1,112.29

1,172.56

1,209.10

1,308.22

1,179.57

1,221.94

1,240.33

1,270.43

1,226.56

11.25 dollars
0.17 dollars

Net salesby region

3
Breakdown oforders received,
net sales, andorder backlog

Orders received
by segment

Net salesby segment

Order backlog
by segment

4
Major expenditures

Depreciation
Capital investment
R&D expense

5
Cash flow

Thousands of
U.S. dollars*1

FY2009(Fiscal years ended March 31)

1Millions of yen

6

Net income per share (yen)100.07Per share information

Net assets per share (yen)1,105.50

7

Dividends (yen)

20*

18

18

18

18

18

18

18

18

25*

18

Stock information

Payout ratio (%)

20.0%

26.7%

33.7%

53.5%

114.4%

123.2%

–

32.1%

57.5%

31.3%

90.1%

2

3

90.1%

*1: ‌U.S. dollar amounts have been translated from yen—solely for the convenience of the reader—at the rate of ¥109 to U.S.$1.00,
the exchange rate prevailing on March 31, 2020.
*2: Includes an additional 2-yen dividend commemorating Torishima’s 90th year of business.
*3: Includes an additional 7-yen dividend commemorating Torishima’s 100th year of business.
Note: Figures on pages 17 to 23 have been calculated based on Japanese disclosure rules.
17

Torishima Report 2020

Torishima Pump Mfg. Co., Ltd.

18

Consolidated financial statements
Consolidated balance sheet

Thousands of
U.S. Dollars

Millions of Yen

Thousands of
U.S. Dollars

Millions of Yen

FY2018FY2019FY2019FY2018FY2019FY2019(March 31, 2019)(March 31, 2020)(March 31, 2020)(March 31, 2019)(March 31, 2020)(March 31, 2020)

AssetsLiabilities

Current assets

Current liabilities

Cash and deposits

15,931

16,277

149,330

Notes and accounts payable - trade

11,145

11,863

108,834

Notes and accounts receivable - trade

25,77825,727

236,027

Short-term loans payable

2,443

3,452

31,669

217

264

2,422

Income taxes payable

140

297

2,724

Work in process

6,462

7,916

72,623

Advances received

2,292

3,242

29,743

Raw materials and supplies

1,647

1,940

17,798Provision for bonuses

872

822

7,541

Advance payments - trade

624

649

5,954

Provision for product warranties

797

595

5,458

Other

1,301

1,353

12,412

Provision for loss on construction contracts

584

831

7,623

Allowance for doubtful accounts(966)(1,885)(17,293)

Other

2,237

2,700

24,77050,99852,243479,293

Total current liabilities

20,51323,806

218,403

15,470

14,116

129,504

659

336

3,082

1

2

18

Merchandise and finished goods

Total current assets
Non-current assets

Non-current liabilities
Long-term loans payable

Property, plant and equipment
10,658

10,397

95,385

Deferred tax liabilities

Accumulated depreciation(6,541)(6,161)(56,522)

Provision for retirement benefits for directors (and other officers)

Buildings and structures, net

4,117

4,235

38,853Retirement benefit liability

301

279

2,559

Machinery, equipment and vehicles

11,186

11,279103,477

Other

779

949

8,706

Accumulated depreciation(8,807)(9,185)(84,266)

Total non-current liabilities

17,212

15,683

143,880

Machinery, equipment and vehicles, net

2,378

2,094

19,21137,72639,490362,293

3,082

3,334

30,587(2,609)(2,901)(26,614)

473

433

3,972

Capital stock

1,592

1,592

14,605

2,484

2,478

22,733

Capital surplus

7,621

7,372

67,633815

1,712

15,706

Retained earnings

24,79324,656226,201

Accumulated depreciation

(338)

(750)

(6,880)Treasury shares(1,736)(1,733)(15,899)

Leased assets, net

477

962

8,825

Total shareholders’ equity

32,271

31,888292,550

Construction in progress

225

1,490

13,66910,156

11,695

107,293

1,638

822

7,541

909

413

3,788

Deferred gains or losses on hedges

(59)

(42)

(385)

Foreign currency translation adjustment

420

310

2,844

381

163

1,495

2,380

1,253

11,495

Buildings and structures

Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Land
Leased assets

Total property, plant and equipment
Intangible assets
Investments and other assets

Total liabilities
Net assets
Shareholders’ equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

9,542

7,917

72,633Remeasurements of defined benefit plans

Long-term loans receivable

333

307

2,816

Total accumulated other comprehensive income

Retirement benefit asset

455

280

2,568

Share acquisition rights

121

121

1,110

Deferred tax assets

105

85

779

Non-controlling interests

174

207

1,899

Other

664

499

4,577

34,94733,470307,064

Allowance for doubtful accounts

(491)

(480)

(4,403)72,67472,961

669,366

10,6098,609

78,981

21,67520,717

190,064

72,67472,961

669,366

Investment securities

Total investments and other assets
Total non-current assets
Total assets

Total net assets
Total liabilities and net assets- U.S. dollar amounts have been translated from yen—solely for the convenience of the reader—at the rate of ¥109 to U.S.$1.00,
the exchange rate prevailing on March 31, 2020.
- The totals shown in the consolidated financial statements (both in yen and in U.S. dollars) do not necessarily agree with the sum of the individual amounts.

19

Torishima Report 2020

Torishima Pump Mfg. Co., Ltd.

20

Consolidated financial statements
Consolidated statements of (comprehensive) income(Consolidated statements of income)Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using equity method
Rent income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Commission for syndicate loan
Foreign exchange losses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of investment securities
Gain on sales of shares of subsidiaries and associates
Total extraordinary income
Extraordinary losses
Loss on sales of investment securities
Loss on valuation of investment securities
Loss on valuation of shares of subsidiaries and associates
Loss on disposal of property, plant and equipment
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit (loss) attributable to non-controlling interests
Profit attributable to owners of parent(Consolidated statements of comprehensive income)

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests

Thousands of
U.S. Dollars

Millions of Yen

FY2018FY2019FY2019(March 31, 2019)(March 31, 2020)(March 31, 2020)

47,12634,815
12,31011,0901,220

48,15436,391
11,763
10,032
1,731

36
293
20
91
241
682

71
220
99
131
290
811

125
—
270
183
578
1,324

128
32
75
29
267
2,275

432,348
319,403112,935
101,743
11,192
330
2,688
183
834
2,211
6,256
1,146
—
2,477
1,678
5,302
12,146

97
9
106

3
—
3

27
—
27

83
14
28
—
127
2,254
107
(7)
100
2,154

33
154
—
128
316
1,011
309
140
449
561

302
1,412
—
1,174
2,899
9,275
2,834
1,284
4,119
5,146

(28)

17

155

543

2,183

4,981

Thousands of
U.S. Dollars

Millions of Yen

FY2018FY2019FY2019(March 31, 2019)(March 31, 2020)(March 31, 2020)

2,154

561

5,146

(401)
(132)
(212)
(80)
(1)
(828)
1,326

(815)
16
(100)
(218)
(4)
(1,122)(560)(7,477)146(917)(2,000)(36)(10,293)(5,137)

1,367
(41)

(583)
22

(5,348)201- U.S. dollar amounts have been translated from yen—solely for the convenience of the reader—at the rate of ¥109 to U.S.$1.00,
the exchange rate prevailing on March 31, 2020.
- The totals shown in the consolidated financial statements (both in yen and in U.S. dollars) do not necessarily agree with the sum of the individual amounts.

21

Torishima Report 2020

Consolidated statements of changes in net assets
FY2019 (April 1, 2019 to March 31, 2020) Millions of yen
Shareholders’ equity
Capital stock

Capital surplus

Retained earnings

Treasury shares

Total shareholders’ equity

1,592

7,621

24,793(1,736)32,271

Balance at beginning of period
Changes during period
Dividends of surplus
Profit attributable to owners of parent
Purchase of treasury shares
Disposal of treasury shares
Cancellation of treasury shares
Net changes in items other than shareholders’ equity
Total changes during period
Balance at end of period

(680)

(680)

543

543
(382)

(382)

13

123

136

(262)

262

—

—

(249)

(137)

3

(382)

1,592

7,372

24,656(1,733)31,888

Accumulated other comprehensive income

Balance at beginning of period
Changes during period
Dividends of surplus
Profit attributable to owners of parent
Purchase of treasury shares
Disposal of treasury shares
Cancellation of treasury shares
Net changes in items other than shareholders’ equity
Total changes during period
Balance at end of period

Valuationdifferenceonavailablefor-salesecurities

Deferred
gains orlosses onhedgesForeigncurrencytranslation
adjustment

1,638

(59)

420

RemeasureTotal
ments of accumulated
definedotherbenefit comprehenplans sive income

Shareacquisitionrights

Noncontrollinginterests

Total net
assets

2,380

121

174

34,947

381

(680)
543
(382)
136
—
16

(109)

(218)

(1,126)

(816)

16

(109)

(218)

(1,126)—32(1,477)

822

(42)

310

163

1,253

121

207

33,470(816)—

FY2019 (April 1, 2019 to March 31, 2020)

32(1,094)

Thousands of US dollars
Shareholders’ equity

Balance at beginning of period
Changes during period
Dividends of surplus
Profit attributable to owners of parent
Purchase of treasury shares
Disposal of treasury shares
Cancellation of treasury shares
Net changes in items other than shareholders’ equity
Total changes during period
Balance at end of period

Capital stock

Capital surplus

Retained earnings

Treasury shares

Total shareholders’ equity

14,60569,917

227,458(15,926)

296,064(6,238)(6,238)

4,981

4,981
(3,504)(3,504)

119

1,128

1,247

(2,403)

2,403

—

—

(2,284)(1,256)27(3,504)

14,60567,633

226,201(15,899)

292,550

Accumulated other comprehensive income

Balance at beginning of period
Changes during period
Dividends of surplus
Profit attributable to owners of parent
Purchase of treasury shares
Disposal of treasury shares
Cancellation of treasury shares
Net changes in items other than shareholders’ equity
Total changes during period
Balance at end of period

Valuationdifferenceonavailablefor-salesecurities

Deferred
gains orlosses onhedgesForeigncurrencytranslation
adjustment

15,027

(541)

3,853

RemeasureTotal
ments of accumulated
definedotherbenefit comprehenplans sive income

Shareacquisitionrights

Noncontrollinginterests

Total net
assets21,834

1,110

1,596

320,614

3,495(6,238)4,981(3,504)
1,247
—
146

(1,000)(2,000)(10,330)(7,486)146(1,000)(2,000)(10,330)—

293(13,550)

7,541

(385)

2,844

1,495

11,495

1,110

1,899

307,064(7,486)—

293(10,036)- U.S. dollar amounts have been translated from yen—solely for the convenience of the reader—at the rate of ¥109 to U.S.$1.00,
the exchange rate prevailing on March 31, 2020.
- The totals shown in the consolidated financial statements (both in yen and in U.S. dollars) do not necessarily agree with the sum of the individual amounts.

Torishima Pump Mfg. Co., Ltd.

22

Consolidated financial statements

Corporate Data
Thousands of
U.S. Dollars

Millions of Yen

FY2018(April 1, 2018 toMarch 31, 2019)

Cash flows from operating activities
Profit before income taxes
Depreciation
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for product warranties
Increase (decrease) in provision for loss on construction contracts
Increase (decrease) in retirement benefit liability
Interest and dividend income
Interest expenses
Share of loss (profit) of entities accounted for using equity method
Loss (gain) on valuation of investment securities
Loss (gain) on sales of investment securities
Loss (gain) on valuation of subsidiaries and associates
Loss (gain) on sales of shares of subsidiaries and associates
Loss (gain) on sales and retirement of property, plant and equipment
Decrease (increase) in notes and accounts receivable - trade
Decrease (increase) in inventories
Decrease (increase) in advance payments
Increase (decrease) in notes and accounts payable - trade
Increase (decrease) in advances received
Increase (decrease) in accounts payable - other
Other, net
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes paid
Income taxes refund
Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sales of investment securities
Payments of loans receivableCollection of loans receivable
Proceeds from sales of shares of subsidiaries resulting in change in scope of consolidation
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Proceeds from sales of treasury shares
Purchase of treasury shares
Proceeds from share issuance to non-controlling shareholders
Dividends paid to non-controlling interests
Cash dividends paid
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Increase in cash and cash equivalents from newly consolidated subsidiary
Cash and cash equivalents at end of period

FY2019(April 1, 2019 toMarch 31, 2020)

FY2019(April 1, 2019 toMarch 31, 2020)

2,254

1,011

9,275

1,825

2,017

18,504

96

908

8,330

74

(201)

(1,844)(1,047)

245

2,247

42

(168)

(1,541)

(291)

(329)

(3,018)

128

125

1,146

(99)

(20)

(183)

14

154

1,412

(13)

29

266

28

—

—

(9)

—

—

(1)

174

1,596

1,065

(68)

(623)

1,142

(1,820)(16,697)

100

(26)

(238)

3

784

7,192

(773)

965

8,853

(274)

326

2,990

(262)

(23)

(211)

4,004

4,085

37,477

291

330

3,027

(122)

(132)

(1,211)

(404)

92

844

—

(167)

(1,532)

3,769

4,207

38,596

(78)

(68)

(623)

108

60

550

(1,558)(2,242)(20,568)

11

17

155

(69)

(226)

(2,073)

(0)

(142)

(1,302)

390

498

4,568

(46)

(3)

(27)

20

31

284

(22)

—

—

(194)

99

908

(1,438)(1,976)(18,128)

49

67

614

5,307

500

4,587

(2,639)(913)(8,376)

60

81

743

(0)

(382)

(3,504)

38

5

45

—

(1)

(9)

(490)

(679)

(6,229)

(174)

(350)

(3,211)

2,150(1,672)(15,339)3(217)(1,990)

4,485

341

3,128

11,37915,924

146,091

59——

15,924

16,265

149,220- U.S. dollar amounts have been translated from yen—solely for the convenience of the reader—at the rate of ¥109 to U.S.$1.00,
the exchange rate prevailing on March 31, 2020.
- The totals shown in the consolidated financial statements (both in yen and in U.S. dollars) do not necessarily agree with the sum of the individual amounts.

23

Torishima Report 2020

Individuals and others
5,648,080 shares 19.14%
Treasury stock
2,491,912 shares 8.44%

Torishima Pump Mfg. Co., Ltd.

Consolidated statements of cash flows(As of March 31, 2020)

Share Breakdown

Foundation: August 1, 1919
Paid-in-capital: 1,592,775,030 yen
Outstanding shares: 29,512,179
Shareholders: 5,803
Employees: 1,642 (Consolidated);
894 (Non-consolidated)
Major Japanese Bases:
Head office: 1-1-8 Miyata-cho, Takatsuki City, Osaka
569-8660, Japan
Branch offices: Tokyo, Osaka, Sapporo, Sendai,
Nagoya, Hiroshima, Takamatsu, Kyushu, Saga
Sales offices: Yokohama, Mie, Wakayama, Okinawa

Type of Shareholder

Financial institutions
9,577,848 shares 32.45%
Financial instrument business operators
161,437shares 0.55%
Other companies
7,225,824 shares 24.48%
Non-Japanese companies, etc.
4,407,078 shares 14.93%

Global Network

Countries where Torishima has delivered products (more than 100)

❶❷
❸❹
❽ ❾
❼
❺❻

East Asia❶ Beijing Office❷ Torishima Pump (Tianjin) Co., Ltd.
❸ Torishima (Hong Kong) Ltd.
❹ Torishima Service Solutions
Formosa Co., Ltd.

South East Asia
❺ Singapore Office❻ Torishima Service Solutions Asia Pte. Ltd.
❼ Torishima Service Solutions
Malaysia Sdn. Bhd.
❽ Torishima Service Solutions Asia Pte. Ltd.
Vietnam Office❾ Torishima Service Solutions Asia Pte. Ltd.
Philippines Office

10P.T. Torishima Guna Engineering
11P.T. Torishima Guna Indonesia
12P.T. Geteka Founindo
13Torishima Service Solutions ( Thailand) Ltd.

19Qatar Project Office
20Torishima Service Solutions(Saudi Arabia) Ltd.
Saudi Arabia Representative OfficeSouth Asia
14Torishima Pumps (India) Pvt. Ltd.
15Torishima Pumps (India) Pvt. Ltd.
Service Division

EuropeTorishima Europe Ltd.
Torishima Service Solutions Europe Ltd.
Torishima Europe Ltd. Madrid Office

Oceania

North America
North America East Office
Torishima Service Solutions ofMichigan LLC.

16Torishima Australia Pty. Ltd.

Middle East
17Torishima Service Solutions FZCO
18Middle East Project OfficeCentral America
Torishima Europe Ltd. Mexico Office

Editorial Policy
We publish the Torishima Report, which communicates to the
public Torishima’s corporate value, including the company’s
financial and non-financial elements. Please refer to our
website for further information of the company.
Financial Data Reference Source
The financial results (including consolidated financial
statements) in the Torishima Report were taken from thesecurities report for the year ending March 31, 2020. For
other financial data, including the securities report andfinancial statements audited by a third party, please visit the
IR section of our website.
Organizations Covered
This report covers the activities of Torishima Pump Mfg. Co.,
Ltd. and its consolidated subsidiaries. Some of theinformation is on Torishima Pump Mfg. Co., Ltd. only.

Referenced Guidelines
Torishima has endeavored to make a report that will generate unique value for thecompany. We referred to the International Integrated Reporting Framework
published by the International Integrated Reporting Council (IIRC) and theEnvironmental Reporting Guidelines (2012 version) published by the Ministry of
the Environment, Japan.
Cautionary Statement with Regard to Forward-Looking Statements
The data and forward-looking statements disclosed in the Torishima Report are
based on decisions made and on information obtained up until the day this report
was published. The forward-looking statements are subject to change due tovarious factors, and they do not guarantee the attainment of objectives, forecasts,
or future business performance. The information in the report is subject to change
without prior notice. Therefore, readers are cautioned to use the information in thereport at their discretion while referring to—or comparing the report with—othersources of information. Torishima bears no obligation whatsoever to compensate
for any damages that may occur as a result of using this report.

Period Covered
The report basically covers the financial reporting period from
April 1, 2019 to March 31, 2020. For information on items
occurring after April 1, 2020, the date is included on therelevant page.
Torishima Pump Mfg. Co., Ltd.

24