Social & Environmental
Report 2010

Contents
About Social & Environmental Report 2010
Message from the Management
Summary of Rinnai Group
Corporate Philosophy
Corporate GovernanceComplianceManagement Vision

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90th Anniversary Special Feature

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3
6
12
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Social Report
With Our Customers
With Our Business Partners
With Our EmployeesWith Our Shareholders and Investors
Corporate Citizenship

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70
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Environmental Report
Environmental Policy
Basic Environmental Activities
Environmental Management System
Fiscal 2010 Environmental Action Plan and Results
Environmental Accounting
Developing Environmentally Conscious Products
Environment-Conscious Monozukuri
Chronology of Environmental Activities at Rinnai

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Rinnai Social & Environmental Report 2010

Rinnai Social & Environmental Report 2010
ScopeRinnai Group(Rinnai Corporation and companies under the Rinnai Group umbrella in Japan and overseas)Reporting Period
This report focuses on events that occurred in fiscal 2010—April 1, 2009 to March 31, 2010—but
also touches upon measures implemented and recent activities undertaken prior to fiscal 2010 aswell as future business direction, targets and plans.

Referenced Guidelines
Sustainability Reporting Guidelines (G3), the third-generation of guidelines by the Global
Reporting Initiative (GRI); Environmental Reporting Guidelines (fiscal 2007), issued by Japan’s
Ministry of the Environment; Environmental Reporting Guidelines (fiscal 2005), issued by
Japan’s Ministry of the Environment
Note: The GRI comparison table is available on the Corporation’s website.

Publication Schedule
September 2010
Previous: August 2009
Next: September 2011 (planned)
Last Social and Environmental Report online version uploaded September 2009

Contacts
For information on social activities,
please contact the Corporate Communication Office at Administration Headquarters
2-26, Fukuzumi-cho, Nakagawa-ku, Nagoya, Aichi 454-0802, Japan
Telephone (from outside Japan): +81-52-361-8211
Fax (from outside Japan): +81-52-361-8529
For information on environmental activities, please contact the Environment Division
Aza-nishihacho, Oaza-akita, Oguchi-cho, Niwa-gun, Aichi 480-0132, Japan
Telephone (from outside Japan): +81-587-95-9560
Fax (from outside Japan): +81-587-95-8169

Editorial Policy
In 2000, Rinnai began publishing an environmental report, as an indispensible tool incommunications activities. In 2006, society-oriented content was added to the report, and in 2007,
disclosure was further expanded to create the current Social & Environmental Report format.
Social & Environmental Report 2010 spotlights Rinnai’s social and environmental
activities. The report reaches beyond the financial community to present the Corporation’s
perspective on social responsibility to a wider audience, promoting mutual trust with all
stakeholders and fostering awareness of actual social and environmental activities.

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Rinnai Social & Environmental Report 2010

Booklet and Online Reports
This report contains a selection of pertinent themes that should provide readers with an easy-tounderstand, overall picture of the social and environmental activities undertaken by the Rinnai
Group.
Specific examples, details, related facts and supplementary content pertaining to certain
topics may be found on the Corporation’s website under CSR Information.
Look for text tagged with the icon shown below and visit the Rinnai website for
expanded disclosure.

Rinnai Group and Its Stakeholders

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Rinnai Social & Environmental Report 2010

Message from the Management
Seeking to be a comprehensive heat-energy appliancemanufacturer contributing to society and the global
environment

Susumu Naito
Chairman

Hiroyasu Naito
President

Medium-term Business Plan “Reform and Breakthrough”
Rinnai embarked on a new medium-term business plan, “Reform and Breakthrough,” in the fiscal
year ended March 31, 2010.
During the previous medium-term business plan, “V-Shift Plan,” we emphasized
meticulous elimination of waste and implemented strategies leveraging our manufacturingexpertise. Our efforts were rewarded on two fronts—an improvement in the quality of many
Rinnai products and significant cost reduction—which underpinned enhanced profitability despite
very challenging market conditions. This undoubtedly reflects the success of reforms, based on“V-Shift Plan,” that strengthened the corporate structure.
We aim to apply the management structure built under “V-Shift Plan” to the whole Groupand will use “Reform and Breakthrough” to realize two key objectives: reinforce operations froma groupwide perspective and become a comprehensive heat-energy appliance manufacturer.
Meanwhile, the industry perspective is on measures to prevent global warming. The
Japan Industrial Association of Gas and Kerosene Appliances, to which gas appliance makers
such as Rinnai belong, is aggressively encouraging widespread adoption of Eco-Jozu highefficiency hot-water units. Under a voluntary measure adopted by the association, its member
companies will switch production of all hot-water units from conventional models to the EcoJozu format by March 2013. In line with this measure, Rinnai has energetically advocated themerits of Eco-Jozu, a position rewarded with favorable sales of its associated series.
In Japan, bathrooms are designed with a sit-down-style showering area and a deep tub.
Soaping up and rinsing take place beside the tub, keeping the hot water in the tub for a relaxing
soak only. Typically, therefore, bathroom systems also include a feature for reheating bathwater
to the desired temperature. Keen to make not only the supply of hot-water for bathtime washingand rinsing but also the reheating of bathwater more efficient, we launched sales of the RUF-E

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Rinnai Social & Environmental Report 2010
Series in February 2010. This series achieves thermal efficiency of 92%—the industry’s top levelfor bath heating systems—and the water-reheating feature offers both convenience as well as
energy savings. The system has received rave reviews ever since it went on sale, which bodes
well for wider support of Eco-Jozu systems.

World’s First Hybrid Hot-Water Unit Raises Breakthrough Expectations
In 2010, which marks the second year of “Reform and Breakthrough,” we introduced a hybrid
hot-water unit—a cutting-edge product with springboard potential to launch us toward our goal of
becoming a comprehensive heat-energy appliance manufacturer.
This hybrid hot-water unit effectively utilizes gas- and air-source heat energy incombination to achieve a 121% energy efficiency rating—the highest level in the world.
Equipped with a gas-source room-heating function, the unit can also be used for floor heating
systems and bathroom heaters, facilitating the creation of living environments that are bothpleasant and energy-efficient.
The room-heating function also offers added safety and peace of mind to elderly folks
who enjoy the therapeutic effects of a relaxing soak in the tub. Older people, even those in good
health, appear to be susceptible to bathtime accidents, especially in winter when the temperaturein the room for undressing and drying off is so much colder than the steaming hot water in the tub.
With the rising percentage of senior citizens in the population, the number of bathtime accidents
has increased, presenting a major social concern.
Many developed nations have announced new energy policies, exemplified by America’s
Green New Deal, and are implementing measures to promote effective utilization of various
energy sources. Rinnai’s hybrid hot-water unit addresses these evolving trends and should, as aleading example of environment-friendly appliances, attract wider interest.

Group Shares the Head Office Perspective on Monozukuri
The products of the Rinnai Group are made and marketed globally, in Japan and 16 othercountries, and have steadily established the Rinnai brand as an integral part of comfortable
lifestyles around the world. Recently, Rinnai products have garnered numerous compliments,
underlining our commitment to “safety and peace of mind,” “comfort” and “the environment.”
These comments make staff at our overseas offices immensely proud to be associated with the
Rinnai Group.
Our next step will be to acquire a higher worldwide profile for the Rinnai brand. To
accomplish this, the Group as a whole must share technologies and techniques—that is,development and production expertise—associated with gas appliance monozukuri, which is not
simply the process of making things but also the quality, pride and specialization that go into theprocess, and then solidify these capabilities. An integral component to our success in this effort isthe Production Technology Center, which was completed this past spring and will become a hub
for training activities. The facility will help us sustain our emphasis on monozukuri and enable us
expand core capabilities.
All our monozukuri know-how will be consolidated at the center, a base from which topursue research on cutting-edge technologies for the benefit of all companies under the Groupumbrella. This will also be a focal point where experienced production engineers offer in-depth

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Rinnai Social & Environmental Report 2010
manufacturing-related instruction to staff from domestic and overseas offices and extend concrete
technical support.
We will utilize the center as a communications point. From here, we will drive home the“Quality is our destiny” philosophy that guides us in our pursuit of new technologies andtechniques. Also from here, we will pass on to each subsequent generation of engineers vital
aspects of our corporate culture, especially the open atmosphere in which everyone, regardless of
position, may voice opinions and engage in improvements and reforms.

Rinnai Spirit Imbues Commitment to Society and the Environment
Today, critical environmental problems loom ahead, with global warming one of the mostpressing concerns worldwide. Consequently, the process of making things with the earth’s limited
natural resources is approaching a crossroads, and change is imminent. Consider the fundamental
shift in attitudes regarding heat-energy appliances that have traditionally consumed huge amounts
of fossil fuel.
Against this backdrop, Rinnai’s products are drawing increasingly wider attention in the
global market, not only from a quality perspective but also an environmental perspective,
especially in terms of reduced energy consumption.
Governments in a growing number of advanced nations have implemented incentive
programs that offer tax breaks for supporting measures to prevent global warming, on theassumption that such initiatives will also inevitably spur recovery. In the United States, forexample, the tax-credit system has steered demand away from conventional storage-type hotwater units in favor of high-efficiency tankless water heaters. Rinnai is among those companies
benefiting from this shift, substantiated by a significant increase in sales of hot-water units.
Our products are high-value-added, stressing safety and peace of mind, comfort, and theenvironment. Given heightened interest in energy-saving, planet-friendly products, our products
will undoubtedly acquire even wider appeal in environment-oriented Japan and other advanced
nations, as well as in newly emerging markets.
Since its establishment, Rinnai has been obsessed, so to speak, with three things: heat andcomfortable lifestyles, quality, and contributing to local communities. This enduring emphasis,
embodied in the Rinnai Spirit, has sustained corporate growth. It permeates the Rinnai Group andencourages new successes. Moreover, it infuses business activities that showcase the true natureof our dedication to society and the environment.
Rinnai has entered a period in which the Corporation intends to achieve a giant leap
forward—the “breakthrough” of the current medium-term business plan—by implementing
reforms.
We have accumulated expertise in manufacturing products that offer safety and peace ofmind, ensure comfort and minimize negative impact on the environment, in accordance with the
Rinnai Spirit. This gas-appliance monozukuri promises to cement our position as acomprehensive heat-energy appliance manufacturer, and we firmly believe it will underpin ourdevelopment into a trusted corporate citizen able to contribute suitably to society and theenvironment.
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Rinnai Social & Environmental Report 2010

Summary of Rinnai Group
Heat energy--we can't live without it.
As a comprehensive heat-energy appliance manufacturer, Rinnai and the Group it leads
contributes to the realization of sustainable societies and regions by emphasizing safety,
peace of mind, comfort and the environment in designing and making its products.

Corporate Data
Company nameHead office

Rinnai Corporation
2-26, Fukuzumi-cho,
Nakagawa-ku, Nagoya454-0802, Japan

Incorporated

September 1, 1920

Established

September 2, 1950

Telephone(from outside
Japan):+81-52-361-8211

Paid-in capital

Chairman

Susumu Naito

Main businessPresident

Hiroyasu Naito

Number of groupcompanies¥6,459,746,974(As of March 31,
2010)
Development,
manufacturing andsales of heat-energy
appliance
43 (domestic 14,
overseas 29)

Products
Kitchenappliances

Table stoves
Built-in-stoves
Built-in-range
Dishwashers
Rice cookers, etc.

Hot-water units

Hot-water units
Bath water heaterGas/solar hot-waterand heating units,
Hybrid hot-water
system,Hot-water heaters, etc.

Airconditioning
and heatingunits

Fan heaters
Fan-forced heaters
Fan-forced fires
Infrared heaters, etc.

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Rinnai Social & Environmental Report 2010

Commercial-use
equipment

OthersCommercial-use
grillers
Commercial-use
rangesCommercial-use ricecookers

Clothes dryers
Infrared burners
Components, etc.

Rinnai Group Network
Factories and related centers
Oguchi Factory, Seto Factory, Asahi Factory, Aichi Factory,
Production Technology Center, Integrated Logistics Center, Components CenterResearch and Development
Technology Development CenterBranches
Tohoku, Kanto, Chubu, Kansai, Kyushu

Domestic sales offices
Sapporo, Sendai, Niigata, Tokyo, Kita-Kanto, Higashi-Kanto, Minami-Kanto, Shizuoka, Nagoya,
Osaka, Kyoji, Hyogo, Hiroshima, Takamatsu, Fukuoka

Domestic Subsidiaries
Manufacture of Products
Yanagisawa Manufacturing Co., Ltd.
Rinnai Technica Co., Ltd.
Manufacture of Components
RB Controls Co., Ltd.
Rinnai Precision Co., Ltd.
RT Engineering Co., Ltd.
Japan Ceramics Co., Ltd.
Noto Tech Co., Ltd.
Techno Parts Co., Ltd.
RB Techno Co., Ltd.

Sale of Products
Rinnai Net Co., Ltd.
RG Co., Ltd.
Other Business
Rinnai Enterprises
Rinnai Tech Hokuriku Co., Ltd.
Rinnai Kogyo Co., Ltd.

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Rinnai Social & Environmental Report 2010

Overseas Subsidiaries and Affiliates
Holding Company/Sale of Products
Rinnai Holdings (Pacific) Pte Ltd.
Sale of Products
Rinnai Australia Pty., Ltd.
Rinnai America Corporation
Rinnai Hong Kong Ltd.
Rinnai Canada Holdings Ltd.
Rinnai UK Ltd.
Guangzhou Rinnai Gas and ElectricAppliance Co., Ltd.
Rinnai Italia S.r.l.
Rinnai SE Corporation
Rinnai Plus Corp.
Manufacture and Sale of Components
RB Korea Ltd.
RS Korea Ltd.
Shanghai RB Controls Co., Ltd.
RK Precision Co., Ltd.
Mikuni RK Corporation

Consolidated Net Sales by Product(Year ended March 31, 2010)

Manufacture and Sale of Products
Rinnai New Zealand Ltd.
Rinnai Taiwan Corporation
Rinnai Korea Corporation
Shanghai Rinnai Co., Ltd.
Rinnai (Thailand) Co., Ltd.
Rinnai Viet Nam Co., Ltd.
P.T. Rinnai Indonesia
Rinnai Brasil Heating Technology Ltd.
Rinnai (Malaysia) Sdn. Bhd.
RBS Thermo Technology Co., Ltd.
Guangzhou Ming Hai Gas & Electrical
Appliance Co., Ltd.
RCE Korea Corporation
Other Business
Rinnai Services (MS) Corporation
Rinnai CS Corporation

Consolidated Net Sales by Region(Year ended March 31, 2010)8

Rinnai Social & Environmental Report 2010

Consolidated Financial Data
Net Sales

Operating Income

Ordinary Income(100 millions of yen)(100 millions of yen)(100 millions of yen)2006 2007 2008 2009 20102006 2007 2008 2009 20102006 2007 2008 2009 2010

(Fiscal year/Years ended March 31)(Fiscal year/Years ended March 31)(Fiscal year/Years ended March 31)

Net Income

Total Assets

Number of Employees(100 millions of yen)(100 millions of yen)

(Number)

2006 2007 2008 2009 2010

(Fiscal year/Years ended March 31)

2006 2007 2008 2009 2010

(Fiscal year/Years ended March 31)

2006 2007 2008 2009 2010

(Fiscal year/Years ended March 31)

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Corporate Philosophy
At Rinnai, social responsibility means respecting the rules of society, including laws, andfostering community development, while conducting business in a responsible and highly ethicalmanner. This view takes precedence over all else in every aspect of routine operations.
To realize this level of social responsibility, each and every employee must weigh his or
her actions against the intent of the Rinnai Spirit in executing assigned duties. The Rinnai Spirit
comes through in the Corporation’s long-standing motto “Harmony, Spirit, Sincerity,” a moral
pillar, and the Rinnai Charter and Rinnai Code of Conduct, which together set out concrete
guidelines to be followed in day-to-day activities.

Company Motto
Harmony:
Develop personal character of the highest caliber
Spirit:Base your efforts on a consistent philosophy
Sincerity:
Know the fundamentals and consider issues with
precision and clarity

Rinnai’s Mission
Rinnai utilizes heating to provide society with a comfortable way of life.

 Rinnai Charter (Seven Commitments)
1. We are committed to keeping our customers first and foremost in our minds with our policy of“Quality is Our Destiny”.
2. We are committed to pursuing safety, comfort, and convenience and to providing products thatare friendly to the global environment.
3. We are committed to acquiring and utilizing expertise in heating to improve our customers’
quality of life.
4. We are committed to strengthening the relationship between Japanese and overseas Rinnai
Group members and to working for each other’s prosperity.
5. We are committed to enhancing the prosperity of the communities that we belong to and tobuilding a reputation as trustworthy and responsible members of society.
6. We are committed to operating under the principles of harmony, spirit and sincerity, and to
growing our company by ensuring the prosperity of society.
7. We are committed to acting in compliance with the law and to adhering to ethics as responsible
members of society.

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Schematic diagram of company idealsThree Key Themes
Since its establishment, Rinnai has grown and developed through an unshakable focus on threethemes. Part and parcel of the Rinnai Spirit, these themes are and always will be integral to our
success.

Heat and comfortable lifestyles
Rinnai’s corporate mission hinges on the use of “heating” to provide society with“comfortable lifestyles”. Our strength is in sophisticated heating technologies, and we will
utilize this capability to facilitate the creation of pleasant living environments.

Quality
Rinnai’s catchphrase—“Quality is our destiny.”—epitomizes a corporate obsession with quality.
So it is only natural that we would keep production and other monozukuri efforts in-house tosustain high-level standards. This enables us to deliver safety and peace of mind to our customers.

Contributing to local communities
At Rinnai, we firmly believe that contributing to a better lifestyle culture in local communities isvital to our role as a good corporate citizen. Basic strategies for expanding our presence abroadrequire that sales and services are executed with local conditions in mind and that manufacturing
takes place in the markets where the products will be sold.

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Corporate GovernanceToward Enhanced Transparency
From the perspective of a sharper competitive edge for the Group and sustained improvement incorporate value, Rinnai has made efforts to augment practices and enrich the scope of corporate
governance a top management priority. We aim to reinforce the functions of corporate structures,such as the Board of Directors and the Board of Auditors, and seek a higher level of managementtransparency, which will be achieved through quick and accurate disclosure of pertinent
information to various stakeholder groups and through access to a wide range of information.

Basic Principles of the Internal Control System
To reinforce our management structure and fulfill our social responsibilities, we maintain aninternal control system with the following objectives and emphasize risk management, internal
auditing and other administrative measures to underpin this system.

1. Effective and efficient operations.
2. Reliable financial reporting.
3. Adherence to laws and regulations affecting business activities.
4. Safeguarding assets.

Director Compensation
Directors are paid a fixed amount commensurate with assigned duties. Please note that Rinnai
terminated the retirement benefit system for directors, following approval of a proposal put
forward at the General Meeting of Shareholders on June 27, 2008.

Structure for Monitoring Management Performance
Rinnai has four corporate auditors, two of whom are outside auditors.
Corporate auditors attend important meetings, including those of the Board of Directors.
They also monitor internal control status—that is, progress on the establishment of internal
controls and implementation of associated practices—with a focus on the results achieved bydirectors and executive bodies, and they check on the status of operations and asset management
at the head office and principal branches.
In addition, an external accounting firm undertakes accounting audits and verifies thesoundness of accounting-oriented internal controls from a third-party perspective.

Board of Directors
The Board of Directors has decision-making authority for important management issues affecting
Rinnai and oversees the execution of duties by directors. The Board has seven members and as arule meets once a month. Some directors below the rank of president hold concurrent positions as
executive officers and are responsible for conveying the content of Board decisions to the
managers of divisions under their respective supervision and for executing operations. In addition,
general groupwide meetings as well as parent-only meetings are held so that directors canpinpoint the status of issues affecting operations and share information on pertinent topics.

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Information Disclosure
Rinnai’s internal regulations describe the structure and procedures to facilitate timely
disclosure of important internal information, including information concerning
subsidiaries. The Information Disclosure Committee ascertains the importance of
disclosing certain developments and determines the timing of disclosure, when a publicannouncement is deemed necessary.

Promoting Risk Management
As social structures become more complex, the risks faced by companies become more diverse.
In this operating environment, the Rinnai Group strives to manage existing and emerging risks tosupport global business development and ensure stable business activities that sustain the trust ofcustomers and society as a whole.
The Risk Management Committee, chaired by the president, meets regularly. The
committee assigns a division to oversee each risk with the potential to influence our corporate
survival, credibility, business pursuits and assets and is also tasked with risk-lowering duties,
such as formulating preventative measures, resolving issues before they turn into crises,
minimizing losses and defining strategies to avert the reoccurrence of any risks that became a
reality.
Methods for hedging risk are promoted laterally throughout the Group.

Corporate Governance Structure13

Rinnai Social & Environmental Report 2010

CompliancePromoting Compliance Practices
For a corporate group to maintain its health and the trust of society, thorough compliance is anabsolute necessity. To raise awareness of compliance as part of the corporate culture, we support
the creation of environments in which employees share the burden of social responsibility andtackle business activities with a forward-looking attitude.

Fiscal 2010 Target

Enrich compliancepromotion measures

Fiscal 2010 Results• Implemented Code of
Ethics course using visualteaching materials• Translated Code of Ethics
and distributed copies toGroup companies overseas

Fiscal 2011 Target
Develop compliancecourses at Group companies
overseasWidespread “Code of Ethics” AwarenessThe “Code of Ethics,” a booklet compiling all aspects of our corporate philosophy, features
specific standards of behavior that all executives and employees must follow. It was published in
2004 for use at the head office, but its scope of application was expanded in 2007 to include
domestic subsidiaries.
Compliance committees at each workplace conduct “Code of Ethics” courses for
employees every year to instill a thorough understanding of acceptable corporate behavior. In
fiscal 2010, visual teaching materials were prepared for the course to enhance the learning
process and give participants a deeper appreciation of the corporate perspective on ethicalbehavior.
An English version was printed in 2007 and distributed to Group companies overseas.
Then in 2009, paralleling expansion of the Rinnai Group outside the sphere of English-speaking
countries, the booklet was translated into five more languages, including Chinese, Korean and
Vietnamese, for local distribution.

“Code of Ethics” booklets in various languages.

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Rinnai Code of Conduct (Key Points)
1. General Provisions
2. Range of Application
3. Compliance with Laws
4. Safety of Product and Services
5. Environmental Protection
6. Contributing to the Local Society
7. Relationships with Shareholders andInvestors

8. Relations with Customers
9. Relations with Politicians and Local
Governments
10. Safety and Health
11. Respect for Human Rights and Beliefs
12. Protection of Company Assets
13. Dealing with Anti-Social ForcesCompliance Education
On the initiative of the president himself, Rinnai issues a corporate ethics message to boost
awareness of compliance among employees.
For background on laws closely connected to the activities undertaken by Rinnai
divisions, seminars are organized, mainly by the Legal Division, to ensure legal compliance.
These events are currently conducted only in Japanese. Themes in fiscal 2010 included contract
basics and Japan’s law on labor standards. Overall, these learning opportunities attracted 1,415
participants.
We also direct concerted effort toward preventing harassment in the workplace. We bringin legal advisors to provide guidance to the Compliance Committee and run level-specific inhouse programs on the topic as well.

At a training event to learn about laws

At a Compliance Committee training eventInternal Reporting System
If, in the course of routine business activities, an employee at a domestic company under theGroup umbrella suspects possible wrongdoing, from a legal, ethical or moral perspective, or thatin-house rules have been broken, and it is difficult to approach a superior or the person
responsible for the division with such suspicions, the employee may report the perceived
infraction to the Corporate Ethics Helpline. In fiscal 2010, the helpline received 20 calls.
Appropriate measures have been taken, including investigation and confirmation of the facts inthese cases of alleged misconduct.


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
Information for All Employees
Every October is designated Corporate Ethics Month, and we promote activities to enhanceawareness of ethics in the workplace. A message on corporate ethics from the president himself is
uploaded to an intranet, and compliance-themed posters are displayed in all offices.
We also run a series of legal compliance columns in Rinnai Life, an in-house publication,and post to our intranet information on revised laws affecting operations as well as a law-oriented
frequently-asked-questions corner. Currently, this information is only available in Japanese.

A compliance-themed poster

Intranet information on a law-oriented
frequently-asked-questions corner.

Checks and Improvement in Compliance Activities
In fiscal 2010, we sent out a questionnaire to employees on the Code of Ethics to determine how
deeply ingrained the corporate philosophy had become and to ascertain latent risk in all offices.
We are implementing measures, based on questionnaire results, to encourage greater awareness ofcompliance issues.
Breaking down the penetration rate for each component of our corporate philosophy, we
found that 99.6% of respondents were familiar with the corporate motto and 97.0% recognized
our corporate mission. From a management perspective, these rates are rewarding. We willcontinue to actively promote compliance activities to maintain these high levels.

Protecting Personal Information
Rinnai applies internal rules based on the Act on the Protection of Personal Information to ensure
appropriate storage and handling of customer data and protection thereof.
Accordingly, we established the position of Chief Privacy Officer at the head office andrequire privacy officers at all workplaces, including the offices of Group companies in Japan, tosupport measures that safeguard personal information and to get across to employees theimportance of protecting personal information. We implement internal audits on the handling of
personal information to ascertain the level of security achieved and strive to reinforce capabilities.
In the unlikely event of an information leak, we will act expeditiously and disclose thesituation.

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Management Vision
Amid a persistently gloomy outlook for the world economy, the Rinnai Group is focused on
measures to deal with heightened management risks and spur medium- to long-term growth.
Efforts are being directed into “Reform and Breakthrough,” a three-year business plan launchedin fiscal 2010.
Through this plan, we will rebuild our operating platform. The heat-energy appliancesegment, which supports comfortable lifestyles, will remain our core business as we work toward
our ultimate goal to be a comprehensive heat-energy appliance maker delivering environmentfriendly heating solutions perfectly suited to local requirements. The pillar of “Reform andBreakthrough” is a three-point set of core policies.

Three core policies

 Consolidated targets(By March 31, 2012)

Relentlessly promote wasteelimination activities
２ Reinforce Group operations
Solidify our position as a
３ comprehensive heating appliancemanufacturer
１

Net sales¥257.0 billion

Operating income¥24.0 billion

Operating margin

9.3%

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Rinnai Social & Environmental Report 2010

90th Anniversary Special Feature: The Past

Supporting comfortable lifestyles for 90 years

Chapter 1: It started with a moment of inspiration for Hidejiro Naito“I want to make a cooking stove like that.”
On a November day back in 1918, Hidejiro Naito, then 25, stood mesmerized in front of a shop
making imagawayaki, a traditional Japanese bun usually filled with adzuki bean paste. He wasintrigued by the unusual blue flame that came from the imported oil-burning cooking stove overwhich the molded imagawayaki pan had been placed.
Keen to try his hand at making a stove like that, he convinced the shopowner to part with
one of its pressurized oil stoves. Using this model as a source of reference, he diligently pursued
his project and successfully brought a model—Prince—to market.
Prince epitomized the pioneering spirit of a man who would become one of Rinnai’s
founders.
Hidejiro worked at Nagoya Gas (now, Toho Gas Co., Ltd.) but left the company to go
into business for himself, joined by Kanekichi Hayashi, whom he had met at the company
dormitory. On September 1, 1920, they established Rinnai & Co.—the forerunner of today’s
Rinnai Corporation. The company name was coined from characters in the two men’s last names.
“Rin” is another way to read “hayashi”, and “nai” comes from “naito.” Hidejiro was in charge oftechnology and Kanekichi handled marketing.

First president,
Hidejiro Naito

Second president,
Kanekichi Hayashi

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Chapter 2: Rinnai’s start traced back to oil-burning appliances“Fire” meets “comfortable lifestyle”
In those early days, the oil stove was seen as a revolutionary product drawing on the benefits offire—that is, heat—to make life easier and more comfortable. Gradually, the public came to see
the oil stove as a fuel-burning appliance at the cutting edge of a new era, and slowly but surely
orders increased.
Initially, Rinnai focused on production and sale of oil-burning appliances. But in 1921,
the year after its establishment, the company entered into production and sale of gas appliances,
an area the founders had considered and where accumulated combustion technology could be
utilized. The most common gas appliances at that time were kitchen-use shichirin stoves and pots
for cooking rice, but they were perceived as luxury items, too exclusive for the average citizen.
In 1923, Rinnai was asked by the local gas company to develop an inexpensive spaceheater in a sheet-metal enclosure. It was a difficult process, characterized by repeated trial-anderror, but eventually there was success. The heater was well received, its popularity leading to a
predominant place among home-use gas room heaters at that time.
Rinnai launched other innovative products, such as a Violet-ray gas stove and a Junker
high-heat gas stove using white gasoline for fuel. Innovative ideas in the development of cooking
stoves earned the company a solid reputation for its contribution to the modernization of theJapanese kitchen.

Publicity photo for oil stove

Chapter 3: Alliance with Schwank GmbH a wager for corporate survival
The cornerstone of today’s Rinnai
In 1948, freshly graduated from Tokyo University with a degree in mechanical engineering,
Hidejiro’s second son, Akito (currently, Rinnai chairman; changed his name to Susumu), joined
the company. He had imagined a different career path, but with the wartime death of his older
brother, who would have followed in his father’s footsteps, he assumed the role. He had his
father’s determination and firmly pledged to turn Rinnai into the world’s top gas appliance maker.
In 1955, Akito went on a site inspection tour to Europe in search of overseas technology
applicable to Rinnai’s activities. By chance, the European Gas Conference coincided with thetour schedule, and Akito decided to drop in. He was listening to presentations from industry
members when Germany’s Günter Schwank took to the stage and began talking about gas
infrared ceramic heaters—new technology that converted gas heat into infrared. Akito wasthrilled, silently screaming “This is it!”.
What Rinnai and gas companies had jointly tackled for many years with without success,Schwank had brilliantly achieved by applying heat through a different medium. Heat passes
evenly through infrared waves, making it perfect for heating and cooking. Akito was convinced

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Rinnai Social & Environmental Report 2010that infrared technology would become the de facto standard for gas appliances and asked
Schwank for access to the patent.
An answer came the next day. Schwank was amenable to licensing the technology, but
his price was equivalent to ¥200 million. Back then, Rinnai was only making ¥600 million a year,
and such an application of funds would have severely strained the company’s finances. But Akito
believed the technology was worth the cost.
Japan’s first Schwank infrared gas heater, realized through a technology tie-up with
Schwank GAS-GERATE GmbH, became hugely popular, transforming the way people heatedrooms.
Combustion technology is the lifeblood of gas appliances, so this chance encounter with
Schwank and subsequent access to infrared technology for gas heaters marked the historicalstarting point for growth at Rinnai. It laid the cornerstone for the business foundation of today’s
Rinnai.

Rinnai representatives visit
Schwank GAS-GERATE

Gas infrared heater catalog

Chapter 4: Rinnai, a household name
Meeting small kitchen requirements
From around 1950, liquefied petroleum (LP) gas consumption in Japan began to increase,prompting Rinnai to embark on the development of LP gas appliances.
In most households of the day, cooking was done on cast-iron stoves. Grilled fish was acommon meal, and smoke would inevitably engulf the kitchen and leave a lingering odor due toinsufficient ventilation. Rinnai had a two-element grill-equipped cooking stove that allowed
effectively limited the release of smoke. But at 70cm wide, this stove was too big for the small
kitchens typical of apartments built in this era.
To meet small kitchen specifications, Rinnai reduced the size of the components in its
two-element grill-equipped cooking stove, and in 1963, debuted the 56cm-wide R-2G. Riding the
housing boom that characterized high economic growth in Japan at this time, the apartmentoriented R-2G was a huge hit. We had to expand our sales network nationwide to keep up withdemand, and for a long time the R-2G dominated the market. Rinnai became a household name,predictably associated with the kitchen.
The catchphrase at the time was “One appliance, three uses—simmer, grill and warm allat once. Enjoy fish without a kitchen full of smoke.”
The following year, 1964, Rinnai stopped making oil-burning products and started afresh,
specializing as a manufacturer of gas appliances.

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Rinnai Social & Environmental Report 2010

Gas cooking stove R-2G

Chapter 5: Testing hot waters
Turning hot-water units into a pillar of business
Rinnai had pursued operations with an emphasis on stoves and space heaters and did not make afull-scale entry into the hot-water unit market until 1979.
The ability to turn hot-water units into a pillar of business came mainly from burgeoning
demand for gas hot-water units in the 1970s and industry-leading efforts to incorporate electronic
control technology into gas appliances.
We established the Seto Factory to anchor our hot-water heater production system andembarked on manufacturing operations in earnest.
In 1983, it was still common for households to use a small hot-water heater when hot
water was needed in the kitchen. These appliances were quite prevalent, with Rinnai alone
supplying 600,000 gas-powered units a year. But patterns of hot water usage were graduallychanging, and single, exterior-placed hot-water units supplying hot water for both bath andkitchen were beginning to appear on the market.
With the growing popularity of hot-water heaters came increasingly higher demand forlarger capacity. Even while the No. 16 hot-water heater was widely available, Rinnai wasworking to develop a high-quality, low-priced product. The result was Bikkuri Yukko, a hot-water
heater boasting No. 20 capacity for roughly the same price as a No. 16 model, thanks to a morecompact body and exhaustive efforts to realize a design that kept manufacturing costs down.
Bikkuri Yukko was well received for its economical, space-saving features as well as theready supply of hot water it provided.

Gas hot-water heater Bikkuri Yukko

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Rinnai Social & Environmental Report 2010

Chapter 6: Rinnai brand gains worldwide profile
Youism—Assume a position of coexistence, empathizing with others andpromoting shared prosperity
Rinnai’s first step abroad was through exports to the United States in 1967. Then in the 1970s, thecompany kicked off overseas manufacturing with the establishment of Rinnai Taiwan
Corporation. The factory network continued to grow, with locations in such markets as Australia,
South Korea, the United States and Brazil. Through local production and sales as well as exports
from Japan, we energetically promoted the Rinnai brand around the world.
From early on, our overseas expansion policy stressed consideration of local preferencesin food and residential customs and culture, efforts to respect the values and insights of our local
partners, and a desire to prosper together.

Rinnai Vietnam opening ceremony.

Chapter 7: From separate combustion appliances to system products
Maximizing the inherent qualities of gas
In the 1980s, qualitative improvements in general housing in Japan buoyed consumer interest in
home fixtures intended to make living spaces more comfortable.
The hot-water unit market saw the debut of models for hot-water/heating that utilized the
hot water made by the hot-water heater to warm rooms to a cozy temperature. Efforts weredirected toward hot-water/heating systems that not only supplied hot water for bath and kitchen
use but also supported whole-house heating, including heated floors and an invitingly warm
bathroom.
Maximizing the high-capacity feature of gas, Rinnai directed concerted energy into
commercializing System Hot 21, a hot-water heater/heating system, and moved ahead with
development of a hot-water terminal.
All of a sudden, the bathroom became much more than a place to bathe. It became a place
to relax, and consumers readily embraced innovative bathroom concepts, such as the mist sauna
and micro air bubble bath and even the installation of a bathroom television set, in the pursuit ofrelaxation.
In the kitchen appliance market, table stoves were prevalent. But the classy design ofsystem kitchens appealed to women, who generally had the last word in kitchen matters, and thisdecision-making power fueled demand for built-in stoves. To meet consumer requirements,
Rinnai enriched its lineup of built-in stoves with models stressing ease-of-use, enhanced safety
features, attractive design, and quick and simple cleaning.

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Rinnai Social & Environmental Report 2010
Changing lifestyles precipitated interest in ovens, which enabled preparation of moreadventurous meals, and dishwashers, which eliminated the drudgery of washing dishes by hand.
These appliances were installed in the space beneath the built-in stove.

System Hot 21, a hot-water heater/heating system

Romantic Realism“Artists, such as van Gogh, were 70% romanticist and 30% realist. Me, as abusinessman, I’m more or less the opposite—60% realist, 40% romanticist.
I aim for a balance. Corporate management is not a one-man show. It’s a
mix of people, things, money and time, all tied to profit in the end. School
grades reflect whatever effort you put into the subject. Take math; it’s aone-dimensional world. But management requires solutions tomultidimensional issues, and that’s the joy of business. That’s what I livefor.

Susumu Naito
Chairman

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Rinnai Social Environmental Report 2010

1920

1930

Rinnai-type oil gas stoves

Kitchenappliances

Hot-water
unitsCast-iron charcoal stoves

Kitchen stove-compound-type heatersCup-shaped hot-water heaters

1938-1944

Rinnai-type Prince gas generator

Violet-ray gas stovesJunker high-heat gas stoves

Automatic hot-water heater

Round bath-heating system

AirOil gas heater with reflector
conditioning and
Round reflector heater
heatingSquare iron-sheet heater

1923:The Great Kanto Earthquake

World events

Drop-type stoves
with two burners

Flower-shaped
charcoal stoves

Violet-ray gas
heater(Compound-type,oil and stoves)Junker high-heat gas heater

1929:World crisis

1933:Withdrawal fromthe United Nations

1926:Changed era from Taisho to Showa

During the Pacific War, whenindustry efforts were diverted toreinforcing Japan’s military arsenal,
the production and sale of fuelburning equipment was prohibited bylaw and factories turned out weaponsand military equipment instead.


1939: 2nd World War
1941-1945:The Pacific War

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Rinnai Social Environmental Report 2010

1950

1960
Restarted manufacturingof oil stoves

Grill-equipped tablecharcoal stoves

Gas-infrared
top-flamed griller

56cm-wide grill-equipped
gas table stoves (R-2G)

Gas table stoves with thin
two burners (R-2K)
Gas-infrared
lower-flamed griller(Araiso)Table charcoal stoves
with two burners
Drinking hot-water heaters
Wall-hung hotwater heaters

Second-grade
instant-heating hotwater units

Instant-heating hot-water units

Vulcan-type heater

Schwank infrared
gas heater
Infrared gas heater(wall-hung type)1947: The Constitution of Japan went into effect
1953:Started TV bradcasting service

Gas bath heating system
Gas instant-heating hot-water units

Infrared gas
paint-drying stoves

1957: The world-first artificial satellite launching by Soviet
1958:Completed
Tokyo Tower

1959:The Ise Bay
Typhoon's
onslaught

Central heating

Balance-type gas bath heating system
Reflective infrared gas heater

Porable dryerFan-forced gas hot-air heaters

1964: Held the Tokyo Olympic Games, opend the Tokaido Shinkansen
1967:Exceeded 100 million peopleof
1969:Apollo 11 moon landing
Japan's population

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Rinnai Social Environmental Report 20101970
Kitchenappliances

1980

High-speed
gas convection oven

Grill-equipped gas-infraedtable stoves (R-3G)



Hot-water
units


Air
conditionin
g and
heating

Conbination range,electoron-convection ovenBalance-typegas bath heating
system withshower1990
Microcomputer-controled
rice cooker

Gas table stoves
with two-side griller (RT-3GV)Built-in-stoves

Compact gas hot- Ultra-compact gas hotwater units, Yukko
water units, Super Yukko

Drum-type clothes dryer Gas fan heaters

1972:Held the Sapporo Winter Olympics

Rice cooker with timer function,
αKamado-dakiGas table stoves with oil overheating
prevention deviceGas hot-water units, Bikkuri Yukko

Gas hot-water and heating units

Gas instant-hotwater heater, Yutee
Gas fan heaters with timer function

Gas hot-air heaters withmicrocomputer-controled timer
function
1970:Held the Osaka Expo 1973:Oil shock 1980:The Iran-Iraq War broke out

World eventsGas hot-water-based air conditioner


1991:The Gulf War broke out

1985:JAL airplane crash

26

1969:Changed era from Showa to Heis

1993:Started European Union (EU)1995:The Great HanshinAwaji EarthquakeocccurrenceRinnai Social Environmental Report 2010

2000
Dishwasher



2009

Cera
mic
glass-



Built-in-stoves with inner-flame burner
Highly efficientcondensing
hot-water units







Glass-top table stoves “Eco-Jozu” hot-water and heating unitsDrop-in-stoves

Built-in-stoves, Mytone series

“Eco-Jozu ” hot-water and heating units,
lightweight "E series "Commercial-use hot-water heating circulation system DECA-QV

Bathroom heater/dryer
Gas fan heaters withfull-scale air purifierBuit-in-stoves, Delicia series Dishwasher with baking soda wash modeNewly designed gas fan heaterGas fan heaters withplasma cluster ion function







Fan-forced fireplace

Gas fan heater with Eco-mode function
Bathroom heater/dryer with Mist Sauna

2001:Attacks of Sept. 11, 2001 in United States

2005: Held the Aichi Expo, effectuation of Kyoto Protocol

2003: Severe Acute Respiratory Syndrome (SARS) epidemic

27

2007:Financial crisis triggered by defaults on US subprime loan

Rinnai Social & Environmental Report 2010

90th Anniversary Special Feature: The Present

The Rinnai Spirit
Our priority. Our most valued asset. For 90 years.
Our emphasis on the Rinnai Spirit has underpinned corporate growth and development
since our establishment 90 years ago. The Rinnai Spirit reflects an enduring obsession, so to
speak, with three things: heat and comfortable lifestyles, quality, and contributing to local
communities. These themes are and always will be integral to our success.

Heat and comfortable lifestyles
Rinnai’s corporate mission hinges on the use of heat to enable society to live in comfort. Ourstrength is in sophisticated heating technologies, and we utilize this capability to facilitate thecreation of pleasant living environments. We develop high-quality space heaters/heating systems
perfectly matched to geographic and demographic characteristics, from climate to lifestyle andpreferred energy options, in each country where our products are sold.

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Rinnai Social & Environmental Report 2010

QualityCore Technology Monozukuri ~ Quality is our destiny. ~Our basic philosophy on quality is epitomized by the catchphrase “Quality is our destiny” andevident in the outstanding quality of our products. We emphasize core technologies—combustion,
heat conversion, electronic control and gas and water fluid control—that create heat and regulate
it, and we keep production of key components in-house, at four of our own factories and sevenmanufacturing companies under the Group umbrella.
By realizing a high in-house production ratio, we have control over quality. We strive forzero-defect status and will sustain the level of excellence demanded by our commitment to thethemes that embody the Rinnai Spirit to provide consumers with products of outstanding quality.

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Rinnai Social & Environmental Report 2010

Monozukuri ~ Market-oriented production system
The basis for manufacturing and all aspects of the process—collectively, monozukuri—at Rinnai
is to think and act from a scientific perspective. We strive to maximize management resources
while applying equipment with operating and judgment functions that contribute to peoplefriendly environments and offer customers peace of mind.
Toward this end, we are building a market-oriented production system that combinespolicy management, the quality control cycle and continuous-improvement proposal activities,
based on a bottom-up approach hinging on lean production espoused under the Toyota Production
System, Total Productive Maintenance and Total Quality Management. We are also organically
applying quality (ISO9001) and environment (ISO14001) management to our operations.

Providing consumers with heat-energy equipment is our business but making high-quality
products is essential to corporate longevity.
Our dedication to quality is the reason we are so passionate about monozukuri. It is why
we take an integrated approach to manufacturing that addresses all stages, from upstream
processing to final assembly, why we keep production of key units within the Group, and why wemake our own tools, including the equipment, dies and information systems used in criticalmanufacturing stages.
In addition, all employees participate in improvement and productive maintenance efforts
and are actively engaged in monozukuri.
In manufacturing, we maintain a multiproduct, mixed-flow production system based on
actual demand to ensure that each item rolling off the line receives suitable attention. Through ourown logistics network, we realize timely delivery. The key components that go into all products
are meticulously monitored on an individual basis, and unit history, from production to shipment,is carefully tracked to maintain traceability.
At the Production Technology Center, which opened in April 2010, engineers pursue
leading-edge monozukuri themes, such as the development of high-precision processing
technologies and advanced automated technologies. This is also a place of training, where skilled
personnel from throughout Rinnai’s global network come to upgrade their capabilities.

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Rinnai Social & Environmental Report 2010

Domestic Monozukuri (Manufacturing within the Group)

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Rinnai Social & Environmental Report 2010

Contributing to Local Communities as a Global EnterpriseAt Rinnai, we firmly believe contributing to a better culture of living for people in the communities where we operate is a vital part of being agood corporate citizen. We pursue local production and conduct sales and service activities fine-tuned to each market through a 16-country
network comprising production and sales subsidiaries in 10 countries and sales-only subsidiaries in seven countries. It is our practice to hire
locally, even for executive positions, and control over business activities is left in the capable hands of these individuals. Embracing the Japaneseconcept of monozukuri laterally, our overseas subsidiaries apply technologies accumulated in Japan to the development of products perfectly
suited to the cooking and residential customs of each market and support our corporate mission to improve the culture of home life in thosecountries. These efforts reinforce the Rinnai brand.

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Rinnai Social & Environmental Report 2010

90th Anniversary Special Feature: The Future

New Challenges on the Road to Our 100th
Anniversary
Through the years, Rinnai has focused on core technologies, accurately pinpointed
consumer needs, and developed products that offer customers safety and peace of mind,
comfort and eco-minded choices.
In this tradition, we marked our 90th anniversary in 2010 with the debut of a
hybrid hot-water unit that runs on gas and electricity. The system uses the most efficientenergy for the required hot-water application to realize the world’s highest environmental
performance.
Our goal, as a comprehensive heat-energy appliance maker, is to contribute to thecreation of better living environments for people around the world and to addressenvironmental concerns. We have embarked on a new journey heading toward our 100th
anniversary but our goal remains the same. We will strive to build a future for our planet
and earnestly pursue new monozukuri through cutting-edge technology.

For the future of our planet, Rinnai challenges new productdevelopment maximizing our cutting-edge technology.
Gas/solar hybrid hot-water system

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Rinnai Social & Environmental Report 2010

Lower CO2 from Hot-Water/Heating System Is Key to Comfortable,
Energy-Saving Lifestyle
A look at household energy consumption in Japan shows that hot water and space heating
account for more than half of the energy bill. Annual use continues to climb nationwide,
due to an increasing preference for lifestyle options that provide greater convenience andcomfort and also due to changes in social infrastructure, including a rising number ofhouseholds. To reverse this rising consumption trend, families need to review theirenergy usage.
The Japanese government has established a CO2 reduction target for households
and is encouraging homeowners to install energy-saving products and switch to naturalenergy appliances. About nine million tons, or 21%, of the target will be met by highefficiency hot-water/heating systems, giving these appliances a significant part to play inJapan’s efforts to cut CO2 emissions.

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Rinnai Social & Environmental Report 2010

Achieving a Comfortable, Energy-Saving Lifestyle
In combination, the highly efficient Eco-Jozu hot-water unit and a heat pump running at
optimum temperature greatly surpasses conventional gas bath water heaters and electricmodels in primary energy efficiency, reaching 121%, because the hybrid system uses justthe right amount of gas and electric power needed for the application. Thanks to its highenergy-saving capability, the hybrid system releases about 27% less CO2 thanconventional gas bath water heaters and about 29% less than electric models,
substantiating the high environmental performance gained through the optimum mix ofenergy sources.

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Rinnai Social & Environmental Report 2010

Supporting Better Heating Culture in JapanThe hybrid hot-water/heating system ensures an ample supply of hot water not only foruse in the kitchen and bath but also for space heating, including heated floors and an
invitingly warm bathroom during the cold winter months—with just one unit. Households
can enjoy the comforts of hot water anytime at all, without worrying about when to use itor how much is available, because the supply of hot water is on-demand and will not runout.
In addition, the hybrid system consumes much less energy than typically required,cutting running costs by more than half, compared with conventional gas bath water
heaters. The energy savings can be directed to hot-water heating for heated floors andbathroom heating to create a comfortable living environment throughout the entire home
at a cost that previously covered only hot water.

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Rinnai Social & Environmental Report 2010

Developer’s Thoughts
We started from zero. We didn’t give up until we had
succeeded.
Takeshi Kato, Technology Chief, Engineering Development
Division, Research & Development Headquarters
In 2005, we turned our attention to the hybrid format as a possible
new type of hot-water unit and that’s how the development concept
was born. Rinnai had always been a gas appliance maker so there
was some in-house opposition to the use of an electric heat pump in
the system. But enthusiasm, mostly, overcame that hurdle because
we were keen to create the world’s most eco-minded product.

Expert Opinion
Live an environment-friendly life with wise energy
choices.
Kae Takase, Director, World Mamenergy FundIf households in Japan installed whole-home hybrid hotwater/heating systems, the impact would be to cut CO2 emissions
by 30.89 million tons. This would be equivalent to about 3% of theCO2 released through energy consumption, which represents 90%
of Japan’s overall greenhouse gas emissions. Hybrid hotwater/heating systems are energy-saving, CO2-reducing and, froman installation perspective, relatively cost-competitive among lowcarbon technologies pegged for mainstream application.

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Rinnai Social & Environmental Report 2010

Social Report

With Our Customers
To enable customers to achieve comfortable lifestyles, we strive to provide products
and services that they can use with peace of mind.
Fiscal 2010 Goals

Fiscal 2010 Achievements

Fiscal 2011 Goals

Disclose product malfunction
information in accordancewith the Consumer Product
Safety Law.

Details of critical productmalfunctions appearing in
Ministry of Economy, Tradeand Industry announcement
posted to Rinnai website.
Enhanced call response during
peak periods by anticipating
number of inquiries; rate
reached 87%.
Debuted Udea éf, a universal
design cooking stove.

Strengthen reporting ofproduct malfunctions to theConsumer Affairs Agency inaccordance with the Consumer
Product Safety Law.
Standardize inquiry response,
establish call-answeringsystem, and push response rate
above 90%.
Add product improvementsfrom a customer perspective.

Boost inquiry rate on
incoming calls from customers
with questions.
Enrich selection of universal
design products.

Improved Technological Capabilities and Unquestionable Quality
Control
Basic Stance on Quality
At Rinnai, we have always been passionate about technology and quality in our development andmanufacturing activities. Indeed, our policy on quality—infused by the corporate philosophy“Quality is our destiny”—stresses efforts to provide customers with highly safe and satisfactory
products. This enduring commitment gives customers complete peace of mind in selecting andusing Rinnai products.

Voluntary Action Plan for Product Safety
In June 2007, we formulated a voluntary action plan for product safety along with a promotion
strategy that would give substance to activities based on the action plan. We encouraged divisions
to embrace the action plan and its associated promotion strategy, confirmed that divisions wereon board, and wrapped up the process in February 2008. Currently, the Customer Service
Division and the Quality Assurance Headquarters oversee the voluntary action plan for productsafety, verify implementation status as appropriate, and guide efforts to uphold our policy on
quality day in and day out.

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Rinnai Social & Environmental Report 2010

Basic Philosophy on Quality

Quality is our destiny.

Policy on Quality
We provide highly safe
products that meetcustomers’ requirements.

Monozukuri in Pursuit of Safety and Peace of Mind
The nature of our business—making and marketing gas appliances—demands monozukuri
prioritizing safety. Since we are so totally committed to excellence in monozukuri, customers canrest assured that we will deliver products developed and manufactured in accordance withindustry specifications and safety standards. Safety is ensured through assessments specific toeach stage of the commercialization process, including design reviews that evaluate productperformance and reliability.

The Seven Key Elements of Quality
1. Good function and performance
2. Easy to use
3. Safe
4. Nice exterior features

5. Reliable
6. Environmentally compatible
7. Up to legal and self-imposed standards

Measures to Ensure the Safety of Gas Appliances
For Safety and High Quality Products
To ensure safety and high quality, we strive for outstanding precision in manufacturing. This isachieved through an integrated production format whereby each factory undertakes all aspects ofmanufacturing, from raw material processing to product assembly, and the production of key
safety components is kept within the Group.
Issues that crop up on a day-to-day basis are communicated to the relevant divisions andresolved. However, issues of a particularly serious nature are reported to the president andexecutive officers at the monthly meeting of the Quality Committee along with associatedupdates on response measures and other actions taken to address problems.

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Rinnai Social & Environmental Report 2010

Disclosure of Product Safety Information
In the event, however remote, that a Rinnai product malfunctions during use or an accident resultsfrom a defective Rinnai product or insufficient service thereof, we promptly report the details to
the competent authorities in accordance with prevailing laws and regulations. Even when it isunclear whether or not an accident is attributable to one of our products, we still provide pertinent
information on our website to alert customers and appliance installation and repair providers to apotential safety issue.

Information related to product accident (Homepage)

Invigorating Quality Improvement through Small Groups
Seeking to enhance the problem-solving skills of each and every employee and invigorate theorganization, we began promoting small group quality control circles in 1979. Currently, we have
245 domestic circles. In Japan, back-office sections, including those at Group companies, also get
actively involved, and we award prizes to the best circles at the annual quality-control conferencein November.
An overseas highlight was the first place award presented to Shanghai Rinnai Co., Ltd., at
the July 2009 Public Works Processing and Construction Excellence in Quality Circle Conference,sponsored by the Public Works Process Association of China. Shanghai Rinnai took top spot
among a China-wide candidate pool of 83 urban development–related companies.

Shanghai Rinnai quality control circle excellence recognized.

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Rinnai Social & Environmental Report 2010

Safety and Peace of Mind ~ Inspections like a yearly medical for
appliances
Accidents linked to the deterioration of home appliances over long-term use have been reported.
In April 2009, the Consumer Products Safety Act was revised and a safety inspection system forproducts in long-term use went into effect. To make customers realize that appliances, like mostproducts, have a particular service life and to encourage customers to have their Rinnai products
inspected regularly, we send out the necessary information and extend advice through the ProductInspection Center. These efforts are aimed at preventing unforeseen accidents.

Rinnai products corresponding to safety inspection system
Indoor-type
gas instant hot water heaters(for city gas, and LP)

Indoor-typebath water heaters
with gas burners(for city gas, and LP)

Dishwashers (built-in)Flow of Safety Inspection System for Products in Long-term Use

The seven products* that fall outside the scope of the safety inspection system are still supported,
but under Rinnai’s own services, such as product safety inspections by duly certified
professionals and three-year warranties on hot-water units.

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Rinnai Social & Environmental Report 2010
Customers turn on a Rinnai appliance every day. To ensure that they feel comfortableusing our products, we strive to enhance our after-sales services to facilitate a swift response in
the event, however remote, that a product does not function as it should.
* The seven products not subject to mandatory inspection are gas fan heaters, gas clothes dryers,
fan-forced gas heaters, built-in gas stoves, gas stoves, gas hot-water units and gas hot-water bathboilers.

Inspection and Repair Services Underpin Peace of Mind
Following the March 2009 establishment of the Customer Service
Division, we opened the Product Inspection Center, which
addresses issues associated with the safety inspection system forproducts in long-term use. We deploy members from anationwide team of about 500 inspection professionals and about
700 service specialists as part of our commitment to reliable andaccessible inspection and repair services.
In addition, we post detailed information on productinspection fees on our website so that customers are aware of thecosts involved in checking the condition of appliances in use.

Service Shop Proficiency Olympics
In July 2009, Rinnai opened the Service Shop Proficiency
Olympics, a national contest to improve servicing techniques. The
event pits some 700 service specialists nationwide against eachother in a friendly competition aimed at motivating participants to
upgrade their skills.

Customer Surveys
We send out questionnaires to customers who have had servicing done on their Rinnai products.
The responses allow us to gauge customer satisfaction, including assessment of on-site servicing,and comments, good and bad, are passed to key divisions as food for thought in developing
products and improving services.

Free Inspection of Instantaneous Gas Water Heaters
Three years ago, in 2007, one of our small, open-type water
heaters malfunctioned and caused an accident. Back then, we
implemented measures to reassure the market of ourcommitment to safety and quality, and today, to prevent areoccurrence of this kind of accident, we continue to offer freeinspections to customers using small, open-type water heaters,
including the RUS-5RX, produced between July 1991 andJanuary 1995, and the RUS-51BT, produced between May
1994 and January 1997.

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Rinnai Social & Environmental Report 2010

Responding to Customers’ Needs, Providing Support
Through Customer Centers
Rinnai maintains five customer centers in Japan. Staff at thesecustomer centers deal with questions, requests and complaints
received from customers by phone, through a toll-free number, andby email, forwarded through our website.
Customer centers are our only direct line ofcommunication to customers. Valuable comments collected
through customer centers are passed on to product development,
sales and service divisions on a daily basis. This feedback provides
clues that we can follow to higher levels of customer satisfaction.
In fiscal 2010, our customer centers logged about 800,000
calls and about 5,000 emails.

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Rinnai Social & Environmental Report 2010

Enhanced Response to Customer Requests for AssistanceSome customers are keen to troubleshoot problems on
their own, with a little guidance from Rinnai experts.
For these people, we created a page on our Japanesewebsite for frequently asked questions—theubiquitous
FAQs
page—concerning
Rinnaiappliances. The questions—numbering 253 at lastcount—and their answers are arranged by producttype.

Attending Consumer Discussion Groups
Between August 2009 and February 2010, at therequest of consumer groups in Aichi Prefecture,
Rinnai representatives attended informal dialogues totalk about the safety inspection system for products inlong-term use. Meetings were held at four locations
and attracted about 180 people who participated inquestion-and-answer sessions and opinion exchange
on such topics as the system’s connection to the
Product Liability Law and the process of inspections
and notifications for products already on the market.

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Rinnai Social & Environmental Report 2010

Helping Customers Use Gas Appliances Properly and Maximize
Comfort and Convenience
Dedicated Site for Sale of Replacement Parts
To ensure that Rinnai products are used properly andcontinue to provide maximum comfort and convenience
to customers for many years, we launched a website,
dubbed R.style—short for Rinnai Style—for online
purchase of parts, primarily for replacement and repair, sothat customers can change out components on their own.
This site lists more than 3,800 consumable parts andservice parts, including gas stove grates, grills and top
plates, and has been warmly received by customers forthe ease of ordering over the Internet to make gas cooking
stoves shine like new.

Rinnai Wins 2009 CRM Best Practice Award
In November 2009, Rinnai received a 2009 CRM Best
Practice Award from CRM Association Japan. The award
recognizes the high value of our joint research with the
Graduate School of Business Administration at Keio
University on a model for quantifying customer loyalty
and configuring a framework for collecting customer
comments via a direct-sales site.
We will treat this model as a key strategic tool in
our e-business and consistently strive to enrichcapabilities while providing services fine-tuned tocustomer needs.

(Right) Masao Kosugi, Managing
Executive Office of Rinnai
Corporation* The CRM Best Practice Award is given by CRM Association Japan to companies, government
agencies and organizations utilizing the latest in information technology and making a
concerted effort to implement leading-edge client resource management programs with success.
The award serves as a case model for promoting CRM.

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Rinnai Social & Environmental Report 2010

Saving Energy, Reducing Greenhouse Gases Depends on Customers
Knowing Optimal Hot Water Volume and Pursuing No-Waste EcoPrograms
In February 2010, we debuted the combi-boiler RUF-E Series as the second wave in the evolutionof our Eco-Jozu E Series, the highly efficient, environment-friendly hot water/heating system.
We worked to raise the heat-efficiency of the existing Eco-Jozu system by reusing waste
heat from hot-water heater circuitry and, with the RUF-E Series we realized high thermal
efficiency through the reuse of waste heat from bath boiler circuitry as well.
As an option, we offer the Eco-Signal Remote Control, which displays helpful
information, such as the right amount of hot water coming through the tap. We also suggest ecoprograms that are a snap to implement.

RUF-E Series Maximizes Waste Heat from Bath Boiler
The bathwater reheating function in hot-water systems is getting more use these days, due to theprevalence of smaller households and a growing tendency to allocate a longer portion of theevening to bath time. We successfully built into the hot-water heater circuitry a secondary heatexchanger for latent heat recovery of waste heat, and then realized thermal efficiency of 92%—
the industry’s highest level for bath heating system—by applying the same design to bath boiler
circuitry.

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Rinnai Social & Environmental Report 2010

Eco-Signal Remote Control Born from Eco-Conscious Perspective
Through a customer questionnaire, we learned that about half the respondents turn the tap for theshower attachment to a fully open position when showering. But using just the right amount ofwater instead of more than necessary will reduce water consumption and energy costs. To help
people know how much is the right amount, we developed the Eco-Signal Remote Control. This
device does not require any special operation nor does it forcibly limit the amount of hot waterused. Rather, it provides information so that customers can make the choice to be eco-friendly on
their own.

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Rinnai Social & Environmental Report 2010

Promoting Eco-Jozu as De Facto Standard
Rinnai offers conventional hot-water units and high-efficiency Eco-Jozu hot water/heating
systems, which reapply waste heat. Naturally, the thermal efficiency of Eco-Jozu hot
water/heating systems is higher, at 95%, compared with about 80% for conventional hot-water
units.
Eco-Jozu hot water/heating systems deliver high energy savings, trimming gas
consumption 12% over conventional hot-water and heating units, and curb CO2 emissions by
12% as well.
Rinnai was one of the first gas appliance manufacturers to integrate energy-savingfeatures into its hot-water units. It has been 10 years since Eco-Jozu hot water/heating systems
appeared on the market under the Rinnai label.
In 2009, we began selling the Eco-Jozu E series and through expansion of the lineup weare contributing to efforts aimed at combating global warming and realizing the April 2013industry goal to make Eco-Jozu the de facto standard*.
*In principle, the gas appliance industry will switch production of all hot-water units to the EcoJozu format by the end of March 2013.

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Rinnai Social & Environmental Report 2010

Universal Design—Easy-to-Use Products that Offer All Customers
Peace of Mind
It has always been our goal to create products from a customer perspective. We want as manycustomers as possible, regardless of age, gender or physical ability, to feel comfortable using our
gas appliances and find them easy to operate. Toward this end, we have been working on
products under the universal design concept.

Udea Tabletop Gas Stove Reflects Customer Input
The 21st century dawned with the rising percentage of elderly in Japan’s population beginning tohave a significant impact on society and lifestyles. The concept of universal design is therefore
more important than ever as it addresses the need for products and services suited to anincreasingly diverse customer base.

—Kitchen Appliances that Make Cooking Enjoyable at Any Age—
Udea is the result of a joint development project with Osaka Gas Co., Ltd., that began in June
2005. During the process of developing an easy-to-use tabletop gas stove, we conductedinterviews with many individuals, including senior citizens and people with disabilities, to gain
greater insight into the little oddities and inconveniences they encounter during routine cooking
activities.
We applied the thoughts and impressions gathered from these customers to thedevelopment of a tabletop gas stove with a straightforward operating format and a design that
does not force the user into a posture that is uncomfortable or impossible to achieve. Our efforts
led to the debut of Udea in October 2007 and Udea éf, with simplified features, in March 2010.
*Udea is a registered trademark of Osaka Gas. Udea êf is a registered product of Osaka Gas.

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Rinnai Social & Environmental Report 2010

Udea Features
Easy access for all users makes cooking apleasure• The control panel is located topside to facilitate
operation without the user having to hunch over orbend at the knees.
• Heating and operation controls for each burner areplaced in pairs so it is easy to keep track of whichburner is in use.
• The topside operation panel is tilted at 10˚ andfeatures touch keys that can be activated with minimalpressure for easy operation, whether the cook issitting in a wheelchair or standing 180cm tall.

Key Size, Labeling and Color Scheme Are Simple
and Straightforward• The layout is self-explanatory: easy to remember anduse.
• The size of the keys is suitable for a wide range of
people.
• The control panel is surface-treated to keep the keys ingood condition in any environment.

Use with Peace of Mind
• Each burner is equipped with a sensor that knows if a pot is there or not and will not lightunless a pot is in place. Also, if a pot is lifted away after a flame is lit, the burner willautomatically reduce the size of the flame so that the cook can move pots around safely.
• This tabletop gas stove is equipped with a sensor that automatically extinguishes the flame if
vibration exceeding a certain level is detected, ensuring safety even in the event of anearthquake.

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Rinnai Social & Environmental Report 2010

Safety and Convenience Features Are a Cut Above• Cooks in a hurry can pick a menu category fromthe icons right above the topside control panel to
expedite their tasks. The icon will illuminate toconfirm selection.
• When the burner itself heats up, a lamp comes on
as a warning that the metal is hot enough to cause
a burn.
• Speakers are installed at the front of theappliance, on either side of the grill door, forclear, intelligible voice guidance.

Enhancing Tabletop Gas Stove Design
The design of our built-in stoves, which garnered a Good Design Award in 2008 and 2009, wasapplied to tabletop gas stoves, which appeared on the market first in the glass-top series and thenin the pearl crystal series. Also, in an industry first, we introduced non–drip tray construction into
our metal-top series for easy cleanup. In addition, for people with diminished dexterity andeyesight, we made the switches bigger and label lettering larger.

Glass Top series

Metal Top series

Pearl Crystal series

Market first
Drip-tray-free configuration(Launched in May 2009)

Old type

New Products

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Rinnai Social & Environmental Report 2010

The Value of Close Contact with Customers
We hold exhibitions all over Japan where the public can get a closer look at the excellent
features of our products. For customers, these exhibitions are opportunities to try out topof-the-line products—to experience the safety of “Si” sensor-equipped tabletop gas
stoves and other features that make cooking and cleanup less of a chore, and to realize theenergy savings afforded by hot-water/heating systems and the comfort of floor heating.
For us, these exhibitions open lines of communication to customers wider.
In addition to exhibitions of our own, we participate in events that highlightregional characteristics, such as joint fairs sponsored by retailers who sell our products.
Our presentations are interesting but also provide customers with ideas on how gas
appliances can make life more comfortable.

Customer Comment Provides Hint for Product Development
An option that has proven particularly popular with our customers is the three-cup ricecooker used in conjunction with a tabletop gas stove.
A customer commented, “The rice cooker is easy to use and cooks up delicious
rice. But the design of the pot is rather drab. Couldn’t you make it a little prettier?” And
we did. Using color enamel technology, we created a series of rice cookers in shades thatmatch our gas cooking stove top plates.

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Rinnai Social & Environmental Report 2010

Live Demonstrations of New Products
Recently, more gas cooking stoves have come on the market with rice-cooking
capabilities and a Dutch oven feature in the grill section. This has expanded the repertoireof adventurous cooks. Our life creators are busy every day, offering explanations,especially to retailers, on the diversifying range of gas cooking stoves available today anddemonstrating products to end users as well.
We established hands-on facilities under the banner “Hot.Lab Training Center” in
10 locations around Japan. Here, visitors can try out new products, including gas cooking
stoves, floor heating and bathroom heater/dryer systems, and attend lectures to enhancetheir understanding of our products.

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Rinnai Social & Environmental Report 2010

Social Report

With Our Business Partners
Guided by a principle emphasizing fair-and-square transactions with all our
suppliers, we undertake various activities to reinforce the existing structure of trustand cooperation and promote stable, long-term growth on both sides of the businesstable.
Fiscal 2010 Goal

Fiscal 2010 Achievement

Fiscal 2011 Goal

Strengthen connections with
suppliers.

Held regular meetings of the
Supplier Liaison Group andopportunities for suppliers to
improve operations.

Continue to support activities
that enable suppliers to
improve operations.

Fair-and-Square Materials Purchasing and Procurement Activity
Our suppliers provide us with the raw materials and many of the components that go into the
products we make. They are business partners indispensible to the creation of products that attract
consumers to the Rinnai name.
To grow along with our suppliers, we emphasize transactions based on a fair andimpartial assessment and selection process and respect for laws and regulations and corporate
principles, in accordance with the Rinnai Group Purchasing Policy. We also work to establish
bonds of trust.

Rinnai Group Purchasing Policy“We will give equal opportunity to all companies at home and abroad and undertake fairevaluations to procure excellent parts that meet our requirements.”

Coexistence and Coprosperity with Business Partners
At Rinnai, we believe that building stable, long-term relationships with our suppliers and growing
with them as they grow with us is vital to the creation of better products.
We have made efforts to “provide highly safe and satisfactory products to our customers”
the foundation of our quality principle, and we strive to achieve and maintain zero-defect status.
But our dedication to this goal is only one side of the quality coin. Suppliers are also integral tothis ongoing objective, and so we ask our suppliers to institute voluntary quality assurance
systems and make a concerted effort to implement and adhere to associated measures.
We enthusiastically support our suppliers in their quality-oriented efforts and create
opportunities for contact, including a get-together at the beginning of the year as well as policy
information meetings to explain our purchasing policy. These occasions help foster mutual trust.

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Rinnai Social & Environmental Report 2010

Fair Selection of Business Partners
Our supplier acceptance process is applied uniformly, whether the company is an old-time
supplier or seeking to become a supplier. Our evaluations are fair, giving equal opportunity to any
and all companies with the right stuff, whether at home or abroad.
Essentially, the divisions involved in procurement—that is, divisions responsible fortechnology, quality and purchasing—consider all factors, including quality, price and delivery as
well as the potential supplier’s technological capabilities and its environment-oriented activities,
in reaching an impartial, well-considered decision.

Efforts to Enhance the Teamwork Perspective
We hold regular meetings of the Supplier Liaison Group, an opportunity for suppliers to learn
more about our perspective on quality and the basis of monozukuri at Rinnai. These meetings arealso ideal for providing updates, such as evolving production trends, and for gathering
information through suggestions from suppliers and dialogue based on submitted questions.
Indeed, these meetings promote a stronger commitment to teamwork.
In other activities, we combine corporate heads, so to speak, drawing on the wisdom ofboth ourselves and suppliers to boost productivity and product quality. Specifically, we send
representatives to visit supplier production sites, identify excess or problem points in their
manufacturing processes, and discuss approaches that might remedy concerns and improve
operations.
On an environmental theme, we promote green procurement processes with an emphasis
on supply chain management.

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Rinnai Social & Environmental Report 2010
We formulated E-Procurement Standards and work along with our suppliers to pursue
monozukuri with an environmental conscience. This includes the implementation of proper
environment management and environment-friendly approaches toward materials and parts
production and use.
In addition, we have introduced controls for chemical substances contained in materials
and parts, in accordance with Chemical Substance Management Rank Guidelines for Products*.
The management of chemical substances encompasses many issues, but we have prioritized thehealth of humans and reduced environmental impact. Along with our suppliers, we will strive toimprove management capabilities while growing our businesses together.
To sustain a sharp competitive edge amid the dizzying pace of change that characterizes
the business environment, the Supplier Liaison Group in fiscal 2010 we resolved issues that
suppliers have in common and strengthened contact among suppliers to address shared concerns.
This led to improvements in monozukuri technologies and quality.
*Policy to eliminate or reduce the use of 19 substances, including six substances listed in the
Reduction of Hazardous Substances (RoHS) Directive.

Policy information meeting with suppliers Supplier quality and on-site improvement
sessionPursuing ISO9001 and ISO14001 Certification
We substantiate our commitment to high quality and environmentally conscious products with
ISO9001 certification (quality management system), obtained in 1995, and ISO14001
certification (environment management system), acquired in 2003, for all domestic factories. We
constantly strive to improve quality and environment-oriented responses through theimplementation of associated management systems.
We encourage suppliers and logistics partners to embrace the same perspective on quality
and the environment. We actively encourage them to follow our example in establishingmanagement system structures based on ISO9001 and ISO14001—or alternative certification if itmeets the requirements of these international standards—and we support them in their efforts toimplement these structures.

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Rinnai Social & Environmental Report 2010

Adhering to the Dispatched Workers Law
The revised Dispatched Workers Law promulgated in March 2004 partially lifted, with certain
conditions, the restriction preventing the dispatch of temporary workers to manufacturing jobs.
Rinnai is one of many companies employing temporary workers, and close contact with agencies
involved in temporary staffing services is indispensible to the Corporation’s activities.
In fiscal 2010, we executed audits to ensure appropriate onsite contracting and temporary
staffing practices and made the results widely known to all factories. We will continue to ensure
strict adherence to the Dispatched Workers Law, primarily through audits.

Working with Logistics Partners
We totally revamped our logistics system, in line with a companywide logistics reform processlaunched in 2004, and centralized the products of four principal factories at the newly opened
Integrated Logistics Center in April 2008.
At this facility, we also pursue production and layout design as well as information
system development on our own to promote streamlined operations finely matched to ourmonozukuri concept.

Enhanced Communication with Logistics Partners
We hold regular quality-oriented discussions with all logistics partners.
Also, every April, we hold a logistics policy information meeting to help service
providers gain deeper insight into our logistics policy, which defines numerical targets and the
direction of logistics improvements. We evaluate logistics quality and improvements to thesystem, based on the existing policy, and single out service providers who have demonstrated
particularly excellent results.
We arrange factory tours so that service providers can see our emphasis on monozukuri
and quality in action and to enable them to visualize the factory floor when related discussions
arise.

Logistics Policy Information Meeting

Factory tour

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Rinnai Social & Environmental Report 2010

Traceability Through Item-by-Item Control
We print a quick response—QR—code directly on our appliances or on product labels affixed to
packaging materials to track each product from the manufacturing line to shipment stage. Whenscanned, the QR code confirms product history, such as the production date and the production
line that turned out that product.

Product Label
Information includes
Product code, gas type, production number, production date,
production line

Working with Logistics Partners to Improve Logistics
We make a concerted effort to listen to our service providers and improve efficiency by making
opportunities to talk with our partners. Through this process, we have adopted approaches toconfirm the company providing service and make sorting operations more efficient, such as
including provider-specific codes on the printed shipping labels affixed to products.

Shipping Label(also functions as shipping tag)
Information includes
Product code, gas type, shipping information

Seeking Comfortable Lifestyles for
People All Around the World
Business development hinges on production,
sales and services fine-tuned to each region
Our business history in Hong Kong spans more than 50 years, supported by bread-and-butter
product development fine-tuned to the local market and high-quality production technologies andmanufacturing capabilities. We sell a variety of items, including tabletop gas stoves, hot-water
units and hot water/heating systems, to major gas companies in the area on an original equipment
manufacture basis.
In September 2009, Rinnai welcomed representatives from 10 gas companies in China
and Hong Kong. They visited the head office and the Production Technology Center and toured
factories, coming away with a solid appreciation for the comprehensive factory management,
rigorous stance on quality control and portfolio of leading-edge technologies that Rinnai hasestablished through its emphasis on the “Quality is our destiny” slogan.

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Social Report

With Our Employees
We strive to create an atmosphere in which employees can be happy andproductive—a corporate climate that motivates each and every employee to do welland enables individuals to demonstrate their full potential. We also seek to maintainworkplace environments that keep employees safe and healthy, both physically andmentally.
Fiscal 2010 Goals

Fiscal 2010 Achievements

Fiscal 2011 Goals

Improve skills by position andresponsibility through rankspecific training programs.

• Implemented rank-specifictraining programs for all
employees promoted to
manager level.
• Executed occupational healthand safety rotation.
• Offered mental healthworkshop with lecture byoutside expert.

• Select leaders to take eachcorporate structure forwardand enhance capabilities
through training programs.
• Boost divisional energy
through mental healthworkshops for managers andtheir staff.

Promote workplace safety andactivities to maintain good
health.

Basic Concept
Efforts to develop business are guided by respect for our human resources, based on the longstanding corporate philosophy embodied in our corporate motto “Harmony, Spirit and Truth.”Every workplace prominently displays this motto as a constant reminder of universal goals.
We offer employees numerous opportunities in their work that enable them to fully
demonstrate the capabilities they have acquired and to grow as individuals. In addition, we seek
to cultivate workplace environments imbued with a corporate atmosphere that keeps employees
happy and properly challenged so that they will embrace respective responsibilities, great andsmall, with passionate determination.

Number of employees (Years ended March 31)(Fiscal year)
2007
2008
Number of
Men
2,156
2,163
employees
Female
1,043
1,076
Total
3,199
3,239
Average age
36.5
36.1
Average service years
14.5
14.3
Number of employees
7,368
7,390
(consolidated)

2009
2,305
1,129
3,434
34.5
13.6

2010
2,373
1,134
3,507
35.6
13.6

7,772

8,206

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Rinnai Social & Environmental Report 2010

Human Resource Development Activities
On-the-Job Training: Platform for Human Resources Development
At Rinnai, human resources are our greatest asset. With this in mind, we promote humanresources development that brings out the talents in each and every employee.

We subscribe to the idea that suitable training and positive work environments are thebuilding blocks of a personnel structure in which employees can demonstrate individual
capabilities through their jobs. Based on this concept, we have established three pillars to
support human resources development: 1) people skills courses, through rank-specifictraining; 2) specialization courses, through function-specific training; and 3) on-the-job
training covering routine operations in various settings.
From fiscal 2011, we also offer programs to upgrade the skills of people
responsible for structural administration and aim to boost the quality of training.

Support for Self-Directed Development
For young employees keen to hone their skills as well as for older employees looking toacquire greater specialized knowledge and techniques, broaden their horizons andbecome better human beings, we advocate personnel exchanges with companies in otherindustries and encourage employees to take language and communications training.
In addition, we introduced a rotation training program for employees with aninterest in improving skills and techniques overseas. This is a win-win program since
employees gain work experience at offices and factories abroad and the Corporation
cultivates human resources capable of playing an active role anywhere in the world.

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Voice
Comment from an Employee on Rotation Training
It’s been one year since I came to Rinnai America. My primary
job is to share information, such as new products and quality
updates, with several divisions on a daily basis to facilitatesmooth operations between Japan and the United States.
When I first arrived, everything was so different. My job
here and in Japan are quite different. I have to interact in adifferent language. And the lifestyle is, yes, different. It was all
so bewildering in the beginning. Thankfully, everyone in Japanand here at Rinnai America have been so helpful. But even ayear into this rotation, I find that every day brings a newchallenge.
I intend to make the most of this opportunity that the
Corporation has given me. I will pick up a little about a lot ofthings that I’d never be able to learn anywhere else, and I will
strive to put this experience to its best use when I return toJapan.

Daiki Uegaki, Rinnai
America Corporation

Hiring with Tomorrow’s Leaders in Mind
We maintain fair and equitable hiring practices, in line with prevailing business plans andrecruitment needs.
Job opportunities are listed on our website. We also attend job fairs to raise our profileand maintain an internship program for interested individuals. In addition, we actively engage in
mid-career hiring to capitalize on the accumulated experience and knowledge of individuals who
showed they can make a contribution to our success.

Recruit results (Number of people) (Years ended March 31)(Fiscal year)
2008
2009
Recurits
College/graduate school
107
130
High school/technical
115
118
schoolMid-career
50
147
Total
272
395

2010
92
151
46
289

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Rinnai Social & Environmental Report 2010

Developing Global Talent and the Technology Group to Support
Monozukuri
In March 2010, we opened the Production Technology Center to consolidate efforts to establish
constituent technologies for monozukuri and develop global talent. These are vital keys in ourplan for worldwide development of production technology as a comprehensive heat-energy
appliance manufacturer.
The center is a place to pursue leading-edge monozukuri, particularly development ofhigh-precision fabrication technology and sophisticated automation technology, and an emphasis
is placed on delving into core technologies. It is also a hub for developing human resources
involved in monozukuri activities at Group companies at home and abroad.

Passing “Rinnai Expertise” to the Next Generation
We continue to utilize the skills of veteran engineers even in retirement through arehiring system. Access to the experience and knowledge of individuals who havereached mandatory retirement age ensures that accumulated expertise and the Rinnai
Spirit are passed smoothly from one generation of Rinnai engineer to the next.
In fiscal 2010, we rehired 58 of 93 people who had reached retirement age, and asof April 2010, we have put 173 retired individuals back on the payroll. This rehiring
system is a win-win opportunity for retired employees as well as Rinnai. Individuals keen
to remain in the workforce can do so, and their enthusiasm injects vitality into ouroperations.

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Rinnai Social & Environmental Report 2010

Strengthen Human Resources at Overseas Group Companies
Since our establishment, we have made the catchphrase “Quality is our destiny” the foundation of
our policy on quality. We have emphasized monozukuri, in particular, in our commitment toquality and have encouraged companies throughout the Group to embrace the goals—integrated
production and zero defects—that are so integral to the monozukuri ideal.
We invite employees from overseas subsidiaries to visit Japan for training to enhancetheir skills and thereby fortify our pool of excellent human resources. Training goes beyond thesimple presentation of techniques from one generation of engineer to another to encompass theprinciples inherent in the Rinnai Spirit—our corporate philosophy—and nurture global talent for
tackling business from a unified, groupwide perspective.

 Key Activities in Fiscal 2010
Training in Japan for engineers at overseas subsidiaries

21 people

AOTS* overseas engineers’ training at Seta Factory*AOTS is the Association for Overseas Technical Scholarship.

Creating Comfortable Work Environments Worldwide
Rinnai maintains an international presence through subsidiaries in 16 countries. To create
comfortable lifestyles for customers in all regions, we must promote manufacturing, sales andservice activities matched to local culture, customs and traditions. Therefore, the president andexecutive officers at each Group company are hired to these positions because they are qualified
and capable. Nationality is not a factor. It is these individuals, with locally based knowledge andskills perfect for local operations, who run each company.

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Creating Comfortable Workplace Environments

Good Labor Relations
We have concluded a collective agreement with the Rinnai Employees’ Association—the unionthat acts on behalf of our employees—and regular negotiations and dialogue with executives
through the Labor-Management Council and with the Personnel Affairs Division through the
Personnel-Association Meeting on such issues as stable hiring, labor conditions, efforts toimprove the workplace environment, and execution of such plans.
With mutual respect for each other’s role and position and acknowledgement of thepotential for differences of opinion, we—Rinnai and the Rinnai Employees’ Association—
resolve issues together and strive to sustain and promote good labor-management relations.

Support for Work-Life Balance
We strive to enrich our support for employees throughout their respective careers at Rinnai sothat each person can balance work and private life according to personal lifestyle while actively
traveling their chosen career path with a sense of fulfillment.

 Key Programs
In-house recruitment
Disabled persons employment
Come Back ProgramChildcare leave
Family-care leave
Volunteering program

Voice
Childcare Leave Program Participant
I was conflicted for days before returning to work. I wanted
to go to the office and get back to work, yet I felt lonely at
the thought of being separated from my child. I was
encouraged by friends who had been in the same boat, andwhen my child turned one and I returned to work, I did sowith a new outlook.
I am eligible for the shortened work hours programand concentrate on my work in the daytime. This leaves my Kumiko Okada, Research& Development
evenings and weekends free to make up for the time I amaway from home, and my child and I have a wonderful time Headquarters
together.
I have so much to be thankful for: the support of myboss and my colleagues, the community of working mothersat Rinnai and the mechanisms, such as childcare leave andshortened work hours, that the Corporation has put in place
to enable employees to manage work and family obligations.
I also have the support of my family.

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Rinnai Social & Environmental Report 2010

 Key Program Participation in Fiscal 2010Childcare leave
Family-care leave
Shortened work hours
Work from home

22
1
14
1

Safeguarding the Personal Information of Employees
The personal information of employees is acquired and used, with consent, mainly for a specificpurpose, and kept under lock and key, primarily by the Personnel Affairs Division. The personal
information of job applicants is appropriately protected and used over a certain period of time,with consent, for a specific purpose.

Higher Pay for Employees on Overseas Assignments
To promote the creation of productive work environments, in fiscal 2010 we surveyed andinterviewed employees who had been sent abroad to gather opinions on the personnel system andthe salary and employment benefits system. Based on questionnaire and interview results, project
teams have been set up in the Personnel Affairs Division and the Overseas Business Headquarters
and a new salary and employment benefits system is being prepared.

Workplaces Welcoming to Women
A woman’s perspective is indispensable to product development at Rinnai, and as a company, we
truly value input from female employees. Women are actively involved in various corporate
activities, including product development, design, manufacturing and marketing as well as
management. We evaluate capabilities fairly and strive to shape business models and cultivate
workplace environments that capitalize on traits typically associated with men or with women.
In recent years, more female employees are taking advantage of our job switch program
to find an approach to work that fits their lifestyle.
We endeavor to create environments in which women can tackle their workplace
responsibilities with determination and a positive attitude.

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Rinnai Social & Environmental Report 2010
 Key Program Participation in Fiscal 2010
Fiscal 2007
Fiscal 2008
Female ratio
47%
57%
Technical job
4 people4 people
Marketing3
15
Clerical job
52
49
Craft
35
58
Total
94 people
126 people

Fiscal 200936%
4 people
11
21
49
85 people

Fiscal 201064%
3 people
3
32
69
107 people

More-Rewarding Family LifeThe Rinnai Employees’ Association is the lead organizer of courses for employees on thethemes “Education for the Soul” and “Passion for Life.” These courses are intended toprepare people for the different stages that life will take them through, with a focus on
ethics, communication skills, life planning and money matters.
Of the firm belief that a positive perspective on work is essentially a reflection ofa happy home life, we encourage employees to take advantage of opportunities, such as
barbecues and sports days, where they can gather as families with families. These events
foster a sense of harmony among colleagues.

Sports festival in Chubu

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Rinnai Social & Environmental Report 2010

Peace of Mind—Working in Safe and Secure Surroundings
Ensuring health and safety in the workplace is a top priority at Rinnai. All employees strive tomaintain clean and safe office and factory environments and contribute to a vibrant atmospherethat is good for both body and soul.

Creating Safe Workplaces
Workplace safety is of paramount importance, taking precedence over all else. The safety of
employees is our No. 1 priority and we have implemented several initiatives to ensure their wellbeing on site.
With the rising frequency of large-scale disasters at home and abroad, the Rinnai Groupknows the importance of building a strong corporate structure to withstand crisis situations.
Business continuity plans have been formulated and discussed, mainly by the Risk Management
Committee, and efforts have been directed into disaster-prevention schemes, hinging on safety
checks and enhanced maintenance of such environmental safety equipment as gas feeders andfurnaces.
We require offices and factories throughout Japan to plan and implement safety programs,
such as disaster prevention and evacuation drills, premised on scenarios of fire and explosions.
We also constantly stress the importance of being prepared, especially efforts to anticipate
potential crisis situations before they can happen and minimize damage and injury in the event
they do transpire, as well as to avert a reoccurrence of accidents that have occurred.

Fiscal 2010 Basic Policy on Safety and Hygiene• Make safety the top priority.
• Adhere to laws and in-house rules.
• Enrich health management and promote industrial health activities.

Fiscal 2010 Slogan
You can make the workplace safer.
Learn to spot potential hazards to achieve zero accident status.

Disaster prevention and evacuation drill at a factory67

Rinnai Social & Environmental Report 2010

Status of On-the-Job Accidents and Injuries
In fiscal 2010, a total of 40 on-the-job accidents were reported. Many of these accidents
involved employees with less than three years of work experience, so we shared the facts
with the Safety and Health Committee and initiated measures to improve safety
awareness among employees.
Information about accidents is provided to domestic Group companies as a way toprevent similar situations from arising.

Traffic Safety
Traffic rules simply must be observed, and we conduct various courses and awareness campaigns
to—pardon the pun—drive home the importance of appropriate on-the-road behavior. We also
have a driver certification program to license employees using company-owned vehicles andobligate drivers to report incidents, such as traffic accidents and violations, in an effort to raisesafety awareness and put a end to traffic accidents. We take a particularly rigorous view ofserious accidents and violations, disclosing details on our in-house portal site and implementing
measures to ensure safe operation of vehicles.

Earthquake Response
To prepare for the possibility of a large-scale earthquake in Japan, weestablished Digital Numazu, an emergency earthquake warning system,
and at least once a year we run a safety confirmation drill using
telephone message services available through local telecommunications
carriers.
We produced an action agenda for employees that describes thesteps to take when an earthquake strikes. Copies have been distributed
to all employees in Japan. The pocket-sized convenience of this action
agenda makes it easy to carry around.

Support for Improved Health
We assume that all employees want to be more health-conscious and at least want tomaintain if not improve their health. To assist employees in their respective approaches togood health, we provide regular checkups as well as annual physicals to catch illnesses as
early as possible and embark on courses of treatment quickly if a health problem is
discovered. We also cover specialized screening for lifestyle-related diseases andinsurance for certain medical situations.
Lifestyle-related diseases appear to be on an increase. As a way to forestall—or
better yet, prevent—the development of such ailments, we offer group classes onwholesome diets and good habits that boost a sluggish metabolism.
 Number of Participants at Key Workshops in Fiscal 2010
Workshop on lifestyle-related diseases

35 people

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Rinnai Social & Environmental Report 2010

Mental Health Care
A survey by Japan’s Ministry of Health, Labor and Welfare revealed an upward trend
over the last few years in the number of workers who feel considerable job-related
anxiety, worry and stress. At Rinnai, we strive to cultivate a positive atmosphere in theworkplace by caring for the mental health of employees as well as their physical wellbeing. This effort focuses on early stress detection and preventative measures.
In fiscal 2010, we held a mental health care workshop. The key objectives were tohelp employees recognize the stressors in their daily routines and become familiar witheffective approaches to de-stress.

Workshop by occupational health officer
 Number of Participants at Key Workshops in Fiscal 2010
Workshop on mental health care

405 people

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Rinnai Social & Environmental Report 2010

Social Report

With Our Shareholders and Investors
We disclose fair and impartial information in a timely and appropriate manner, andthrough open channels to shareholders and investors we pursue investor relations(IR) activities that foster greater trust.
Fiscal 2010 Goals• Ensure appropriate
information disclosure forshareholders and investors.

Fiscal 2010 Achievements• Implemented IR
information meeting in the
Kanto and Chubu districts,
centered on Tokyo andNagoya, respectively.
• Uploaded information to
the Rinnai website in atimely manner.

Fiscal 2011 Goals• Enhance information
access and maintaincontinuous disclosure of
pertinent information toshareholders and investors.

Basic Concept
The underlying policy that guides us in our IR pursuits is to accurately and impartially provide
pertinent information about Rinnai to shareholders and investors whenever necessary.
Naturally, this policy applies to the disclosure of business results and financial
information. It also underpins efforts to provide information on other aspects of business,
including expansion abroad, environmental activities and future growth strategies.
In addition, we feel communication with shareholders and investors is essential to deepen
stakeholders’ understanding of our business pursuits and reinforce our stellar reputation in themarket. Toward this end, we utilize such conduits as general shareholders’ meetings and investor
information meetings to lay the groundwork for good communication.

Emphasis on Stable Dividend
One of our top management priorities is to sustain astable return of profits to shareholders. Several
factors play into the calculation of dividends, suchas consolidated performance, return on equity andfinancial status.
Seeking to enhance corporate value,
management looks at retained earnings with a viewto the long term, effectively applying this source ofcapital toward R&D, capital spending andinvestments accompanying the expansion of sales
at home and abroad.
The annual dividend for fiscal 2010 was¥42 per share, up ¥2 per share from fiscal 2009.
This marked the seventh consecutive year of higher
dividends.

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Rinnai Social & Environmental Report 2010

Timely, Fair Disclosure
We produce various IR tools and disclose assorted
information to broaden shareholder and investor
perceptions about our operations and our results.
We issue press releases that are picked up bymass media, and we publish shareholder-oriented
documents, such as Jigyo Hokokusho—a Japaneselanguage business report.
We keep adding to the IR menu on our website,
updating with the right materials at the right time.
Visitors to the website will find financial statements,
shareholder notices and other results-related materials,
many of which have been translated into English as
well.

General Shareholders’ Meetings
To encourage more shareholders to get fully involved in discussions about agenda items put
before the general shareholders’ meeting and to draw more shareholders to the meetings, we sendout the convocation notice three weeks in advance of each annual meeting.
In addition, since the foreign shareholding ratio is close to 30%, we upload an Englishlanguage translation of the convocation notice to our website on the same day that the Japaneseoriginal is released to ensure that all shareholders have equitable and expeditious access topertinent information. Resolutions achieved at the general meeting of shareholders are alsoavailable on our website, in both English and Japanese.

Shares by shareholder
Share Information(As of March 31, 2010)
Number of authorized shares:
200,000,000 shares
Number of outstanding shares:
54,216,463 (Including treasury stock)
Number of shareholders: 3,757

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Rinnai Social & Environmental Report 2010

Communication Practices that Deepen Trust and Understanding
Communication with Global Institutional Investors and Analysts
Twice a year, for the announcement of second-quarter and fiscal year-end settlements, thepresident and other executive officers lead debriefings for institutional investors and analysts.
We also hold information meetings for overseas investors and actively promote events,
such as factory tours, that allow participants to learn more about the Rinnai Group. Keeping lines
of communication open on a smaller scale, we accept requests for story interviews and meetings
with institutional investors and analysts.
We also disclose information to the media and utilize these conduits as supplementaryaccess routes to shareholders and investors.

Principal IR activities in Fiscal 2010
IR activities
Information meeting
Individual meeting
Interview
Telephone meeting
Small meeting
Analyst IR events
Total

Number of activities held
2 times
77
31
12
10
1
133

Total number ofattendance
176 persons
127
35
14
69
11
432

Factory Tours
To enable individual investors to see what takes place on the factory floor, we joined Toho Gas
Co., Ltd., in holding a factory tour combined with an IR presentation. These double-feature
events have taken place since 2007 and are always well-received. A prime example of thepositive participant reactions we receive is this comment: “Very informative. I came away with
first-hand visuals of the manufacturing processes and overall quality control that goes into
products I use on a daily basis as well as facts, such as performance figures and management
plans.”

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Rinnai Social & Environmental Report 2010

Communication with Individual Investors
We promote IR activities highlighting direct contact with individual investors. In fiscal 2010, we
participated in IR fairs for individual investors in two cities, Tokyo and Nagoya. These events
provided opportunities for explaining business results and management strategies. In addition,
through question-and-answer dialogue prompted by new products on display and panels
showcasing overseas operations, a wide range of investors were able to learn more about ouractivities.

Questionnaires for Individual Investors
We send out questionnaires to individual
investors who have attended an information
meeting. The responses—valuable sources of
insight into how Rinnai is perceived by thisinvestor segment—are objectively analyzed
and the results used as a guide to reinforce
corporate value in line with the expectations of
all shareholders.

Tapped for the FTSE4Good Index Series
In the operation of funds, such as investment trusts, socially
responsible investment (SRI) has attracted considerable attention.
SRI managers not only assess a target company’s financial
conditions and growth prospects but also its ability to meet globally
recognized corporate responsibility standards in such areas as theenvironment, the community and human rights.
The FTSE4Good Index Series is one of the world’s mostwidely known SRI indices and facilitates investment in companies
that satisfy established CSR standards. Rinnai has been selected forinclusion in this series every year since 2004.

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Rinnai Social & Environmental Report 2010

Social Report

Corporate Citizenship
Corporate philanthropy is a global pursuit at Rinnai, with activities closely tied tothe communities in which we maintain a presence.

Positive Learning Environment for the Leaders of Tomorrow

Construction of Rinnai Xiwang Elementary School in China’s Anhui
Province
As a participant in the Shanghai City Xiwang (Wish) Project, Shanghai Rinnai Co., Ltd.,
sponsored construction of the Rinnai Xiwang Elementary School. The school-building project
was undertaken with a 500,000 yuan contribution from Shanghai Rinnai and a grant from the
Huoshan County, where the school is located.
Construction, which began in September 2009, wrapped up in spring 2010.
Representatives from Shanghai Rinnai attended the opening ceremony on April 13, 2010, andhanded out learning-oriented presents, such as school supplies for the children and teachingmaterials for the instructors.
The investment provides a wonderful improvement in the learning environment for the
local children. The school has seating for about 300 students. The building also features adormitory, with space for more than 100 children, as well as a cafeteria, library and an ITclassroom with computers, projectors and other equipment.
We will continue to support the development of children wherever the right opportunity
presents itself because children ensure the world’s tomorrow.

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Support for Victims of DisasterDonations
We promote fund-raising activities at Rinnai
locations around the world in support of Red
Cross programs that contribute to relief efforts
benefitting victims of disaster. Rinnai (Thailand)Co., Ltd., raised 100,000 baht in a local donation
drive for the Red Cross to help the many peopleof Haiti left injured and homeless by the massive
earthquake on January 12, 2010.

Help in Italy
A devastating earthquake hit the region of
Abruzzo in central Italy in April 2009, andRinnai Italia S.r.l. responded with a No. 24
condensing hot-water unit for a temporary
shelter set up to accommodate those left
homeless by the disaster.
We maintain contact with industry
organizations in all regions where we have apresence so that when disaster strikes we areable to assist in relief efforts.

Communicating with Students
Technology and Vocational Studies
Representatives from Rinnai America wereinvited to a local high school to give a
presentation to the vocational studies class ontankless technology and energy-efficient water
heating.

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Rinnai Social & Environmental Report 2010

Factory Tour for Elementary School Students
To encourage interaction with the local
community, we invite school children to visit a
nearby Rinnai factory for a tour. This is awonderful opportunity for youngsters to see amanufacturing facility up close and learn about
the products coming off the production lines.
Teachers use the tour as part of the social
studies class.

In Touch with the Community
Through regular meetings with citizens living
near our factories and participation in events
organized by the local government, we open
lines of communication with our neighbors.

Taking Part in Disaster-Prevention Activities
All places of business pursue various activities designed to show Rinnai’s helping hand in fireand disaster-prevention initiatives within the communities where the Corporation operates.
In May 2009, an apartment fire broke out near our office in the city of Akita, Akita
Prefecture, and employees responded quickly to give first-aid and douse the flames. These efforts
were credited with keeping damage to a minimum and honored with a commendation from the
Akita Fire Department.

In-house fire-fighting team Commendation received from Akita Fireat the Kanto Branch. Department.
Photo courtesy of Akita Sakigake Shimpo.

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Rinnai Social & Environmental Report 2010

Support for Sports and Culture

Rinnai supports events that foster international
exchange in the arts and culture, including cosponsorship of the Nagoya Philharmonic
Orchestra and the Nagoya Boys and Girls
Invention Club, and sports, including
sponsorship of a local soccer team.

Going Green

Rinnai has promoted the Home Greening
Project since 2008 as a way to curb global
warming. The project, now in its third year,
attracts the interest of many people every year.
Under this project, we present a set oftwo blueberry bushes to 3,000 individuals
selected from all over Japan. Growing
blueberries together, we can reduce carbon
dioxide in the atmosphere.

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Rinnai Social & Environmental Report 2010

Environmental Report

Environmental Policy
Mindful of the fact that the world’s environmental problems are a priority for management
at any company these days, Rinnai leads the Rinnai Group in pursuing business activities
that will support social sustainability through concurrent efforts to protect the environmentand generate public good.
Toward this end, we set specific targets to gauge the success of our environmental
policy, emphasizing environmentally conscious product development and monozukuri, andstrive to reinforce environment-oriented activities.

Basic Philosophy on the Environment
Rinnai’s basic philosophy is to embrace environmental protection on a global scale and contributeto society through the pursuit of excellent, people- and planet-friendly technology, and productdevelopment, production, sales and service infused with a sense of humanity.

Environmental Slogan“Our actions are imbued by the wisdom of many and undertaken with due consideration to thesustainability of a people- and earth-friendly environment.”

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Rinnai Social & Environmental Report 2010

Basic Environmental Policy
1. Provide environmentally conscious products that have minimal impact on theenvironment.
Through the diligent pursuit of product development stressing reduced consumption of
resources and energy and higher recycling rates as well as eco-minded materials procurement(E-Procurement), we will provide environmentally conscious products (E-Products) that haveminimal impact on the environment and contribute to a healthier planet.
2. Create green factories and offices with the environment in mind.
We will emphasize activities that save energy, reduce waste and limit or eliminate hazardous
chemical substances, and we will work toward the establishment of environmentally
sustainable factories and offices—E-Factory and E-Office—that fit in with the natural
surroundings.
3. Consider how sales and service activities might affect the environment.
We will reduce the impact that sales (E-Marketing), services (E-Service) and other businessactivities in general might have on the environment.
4. Formulate an environmental management system and continuously improve it.
We will formulate an environmental management system and continuously enhance its scopethrough the establishment and management of appropriate environmental objectives andtargets.
5. Ensure activities are in compliance with regulations and restrictions, including laws, andself-established standards.
Obviously, we will abide by laws, ordinances, agreements and other regulations andrestrictions, but we will also set and adhere to self-established standards corresponding tosocial demands. We will always strive to enhance our response to meet revised regulations
and evolving standards.
6. Raise environmental awareness among employees and work with communities tocontribute to society.
We will raise environmental awareness among all employees through environment-themed
training, and we will promote activities undertaken jointly with regional communities andother groups to achieve public good. This perspective is called e-mind.
7. Disclose information to employees and the communities in which we work.
We will disclose environment-related information, such as policies and strategies, to keep
employees and society at large in the loop about our perspectives and actions onenvironmental issues.

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Basic Environmental Activities“7E” Strategic Initiatives
Green Activities Involving All Employees in All Business Areas
A green perspective infuses our actions. Under the Rinnai umbrella, employees with a high senseof environmental awareness uphold a corporate mission to create environmentally conscious
products at green factories and provide these products to customers confident that every effort has
been made to protect the environment.
As a monozukuri-driven company with a long history in manufacturing operations, weapply this green perspective to the entire lifecycle of our products—from product development toprocurement of materials and components and on through production and then sales, use anddisposal—through fine-tuned “7E” strategic initiatives.
These 7Es are E-Procurement; E-Factory, which engage in monozukuri activities; EProducts, made at these factories; E-Marketing, the sale of products; E-Service, of products usedby customers; E-Office, where administration activities take place; and E-Mind, that is, ouremployees, without whom the business would not run.

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1. E-Products• Priority Focus
Develop environmentally conscious products.

2. E-Procurement• Priority Focus
Promote green procurement.

3. E-Factory• Priority Focus
Promote activities with reduced environmental impact.

4. E-Marketing• Priority Focus
Sell environmentally conscious products.
Encourage customers to be more environmentally aware.

5. E-Service• Priority Focus
Emphasize environmentally conscious service activities.

6. E-Office• Priority Focus
Promote office activities that are friendly to theenvironment.

7. E-Mind• Priority Focus
Initiate environmental education and awareness programs.
Distribute environment-themed information.
Get involved in activities that contribute to thecommunity.

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Environment-Oriented Activities
Takashi Hasegawa, Chief Manager, Environment Division
The Environment Division came to life in 1999, and the 11 years
since then have passed so quickly. I recall the division’s early days
with such a sense of nostalgia. I was assigned to get the division up
and running, frame a concept for the division, and present a direction
for environmental activities at Rinnai to the directors, including thecurrent president, who were responsible for the Corporation’senvironmental responses.
To give environment management tangible form, I pushed
for ISO 14001 certification for the whole company and expanded thescope of strategic activities from the initial 3Es to 7Es, covering allareas of corporate activity.
Lately, I often hear top management say that environmental
activities “are vital in fulfilling social responsibilities but also offer
tremendous business potential, and so we must enthusiasticallyengage in such activities.” I am keenly aware of the responsibility.
With global warming at the top of the list of environmental
issues growing more serious with every passing day, the Environment
Division’s role seems to be expanding to ensure Rinnai cancontribute to effective solutions. Taking a corporate perspective, allemployees naturally feel that corporate growth is the No. 1 priority,
but I’m sure they also take pride in the environmental activities
undertaken by their company. This is especially true withenvironmental issues, such as global warming, which demandmeasures transcending national, corporate and personal interests andrequire corporate citizens to do as much as possible to address theseissues.
How long can Japan—a country reliant upon other countries
for energy and natural resources—survive if the people don’t acquire
environmentally sound habits? To ensure Japan’s continued existence
and a future for our children, society must welcome change. People
must significantly modify their lifestyles.
For myself, my young grandchildren are a constant reminder
to me about the future. I watch them grow and wonder what kind ofworld they will inherit. So I will work along with everyone in theEnvironment Division to raise the quality of environmental activities
at Rinnai and help the Corporation make the kind of contribution thata company, trusted by customers and society as a whole, is expected
to make for a sustainable future.

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Environmental Management System
Rinnai maintains an environmental management system based on ISO 14001.
We effectively utilize this management system and constantly strive to promote
environment management practices aimed at environmentally conscious monozukuri and toraise environmental performance. Our goal is to contribute to the formation of a society
capable of sustainable development.

The Rinnai Group maintains an environmental management system.
To underpin the systematic and continuous development of environment-oriented activities in linewith our stated basic environmental policy, we encourage all members of the Rinnai Group toembrace efforts to acquire and maintain ISO 14001 certification. Most recently, in May 2010 theKansai Branch, a marketing and sales division, and the Logistics Control Office, which
coordinates product distribution, obtained certification. We will encourage other domestic
marketing and sales offices as well as overseas subsidiaries to work toward certification, which
will serve to reinforce our environmental résumé still further.

 Newly certified for ISO 14001 status

Kansai Branch

Logistics Control Office(Logistics Center) ISO 14001 Environmental management system Certification Status
Certified offices
Rinnai Corporation
Research & Development
Headquarters
Production Engineering
Division

Certificatedyear/month

Certified offices

Certificatedyear/month

Domestic Group Companies
Oct. 1997

Rinnai Technica Co., Ltd.

Dec. 2003

Oct. 1997

Yanagisawa Manufacturing Co., Ltd.

June 2004

Oguchi Factory

Oct. 1997

Rinnai Precision Co., Ltd.

Dec. 2005

Seto Factory
Environment Division
Aichi Factory
Asahi Factory
Quality Assurance
Headquarters
Head OfficeKansai Branch
Logistic Control Office

Dec. 2000
Dec. 2000
Nov. 2003
Nov. 2003

Japan Ceramics Co., Ltd.
RT Engineering Co., Ltd.
RB Controls Co., Ltd.
Noto Tech Co., Ltd.

Jan. 2006
Mar. 2006
Mar. 2006
Jan. 2007

Nov. 2003

Overseas Group Companies

Dec. 2008
May 2010
May 2010

Rinnai Korea Corporation
RB Korea Ltd.
Shanghai Rinnai Co., Ltd.

July 1997
Oct. 2006
Dec. 2008

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Environmental Activities Structure
The Environment Management Committee guides corporate efforts to achieve targets based on
environmental policy. This committee is chaired by the executive officer responsible for theenvironment and has the participation of representatives from all divisions. Its mandate is topromote environment-oriented activities from a big-picture view.

Environment Management Activities
The Environment Management Committee spreads the word about environmental policy andmedium- to long-term objectives at Rinnai. In line with annual plans, we promote concrete
activities. We review our objectives as necessary and diligently strive to meet our targets.
Each division has a liaison group and holds routine meetings to discuss environmentrelated themes and make issues known to everyone in the respective division.

Environment Management Committee

Environment Meeting (Seto Factory)84

Rinnai Social & Environmental Report 2010

Environmental Audits
External Audits
The ISO 14011 Certification Division undergoes a routine audit, once a year, by an external
screening/registration body to verify that the environmental management system is being properly
applied. The routine audit in fiscal 2010 did not turn up any major non-conformances.

External audit

Internal Audits
Auditing team, comprising impartial internal auditors chosen from within the Corporation who
have no direct connection to the division under audit, assess conformity to the establishedenvironmental management system and review division activities. Auditors visit worksites ofdivisions tapped for an audit and perform detailed inspections. Direct contact between auditorsand divisions facilitates greater understanding of division activities and auditor concerns.
Internal audits in fiscal 2010 found no major non-conformances. There were 13
opportunities for improvement and 51 observations. We swiftly addressed these areas to ensurethat they would not develop into problems later on.

Start of an internal audit

Environmental Training
Internal Auditor Training
Internal auditors play a significant role over and above their efforts to continuously improve theenvironmental management system. To upgrade the skills of internal auditors, we conduct regulartraining by in-house instructors on such topics as laws and ordinances, internal regulations,internal audit observations and improvement measures, and environment-oriented trends. In fiscal
2010, the courses drew 81 participants.

Internal auditor training

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Eco-Leader Course
In every divisions, we offer an eco-leader course aimed at developing the skills of environment
managers who independently and energetically promote environmental activities. The one-day
course is presented by in-house and guest instructors and covers a wide range of points, fromenvironmental management basics to concrete examples. In fiscal 2010, the course was attended
by 21 people, including employees from affiliated companies.

Environment basics courseby an in-house instructor

Environment game led by a guest instructor

Enhancing Global Environment Management:
Creating an environmental management system with our business partners
Chemical Management Project
All over the world, governments are implementing tougher restrictions on chemicals, andmanufacturers are increasingly required to monitor their use of chemicals used during production
stages and the chemical content in finished products. Chemical substances are known to present
certain risks, depending on the harm they could inflict. It is important to identify suchinformation.
In Europe, especially, manufacturers must adhere to strict regulations, such as the
Reduction of Hazardous Substances (RoHS) Directive and Registration, Evaluation,
Authorisation and restriction of CHemicals (REACH).
As a collection of companies, the Rinnai Group must assumed a unified approach inmanaging information on the chemicals contained in its products. We must properly address laws
and regulations at home and abroad and respond accurately to requests from customers on thechemicals found in our products.
Chemical substances are a critical key component of quality control. They are unseen yet
require monitoring. Members of the Chemical Management Project promote activities toestablish and further strengthen the platform for chemical management.
Information Meeting
Everything, from components made in-house andexternally to purchased products, is subject tochemical management, and the process requires close
contact between suppliers and members of the Rinnai
Group. To facilitate efforts, we hold information
meetings and encourage opportunities to strengthen
our cooperative relationship.

Information meeting for suppliers run by
the Chemical Management Project*RoHS Directive: A European Union–initiated directive calling for the near-elimination of certain hazardous
substances found in electrical and electronic equipment. Since July 1, 2006, restrictions have been placed onelectrical and electronic equipment entering EU markets, effectively banning products that contain more than thepermitted levels of lead, mercury, cadmium, hexavelent chromium, polybrominated biphenyls and polybrominateddiphenyl ethers. *REACH: Rules that obligate industry to register, evaluate and authorize chemicals manufactured in
the member nations of the European Union or imported to these nations.

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Fiscal 2010 Environmental Action Plan and
Results
Rinnai lists herewith the targets for key activities—environment management and the 7Es (EProducts, E-Procurement, E-Factory, E-Marketing, E-Service, E-Office and E-Mind)—and theresults achieved, as well as an assessment of progress toward respective goals.
Fiscal 2010 Target

Fiscal 2010 Achievement

Progress

RelatedContent• ISO 14001 certification• ISO 14001 certification
obtained for two divisions—Kansai Branch and Logistics
Control Office (Logistics
Center).

○P37• Developed products
exceeding energy-saving
standard.
- Table stoves, built-in stoves- Condensing hot-water units(for overseas)- Commercial-use stoves• Developed fan-forced gas
heater for overseas market.

○

P15
P16
P22
P42
P43

• Developed low-NOx
condensing hot-water unit.

○

P42
P43

• Implemented productassessments.
• Developed lighter-weight
condensing bath water unit.

○

P22
P42
P43

• Procured and used materials
in accordance with EProcurement Standard.
• Strengthened platform
through chemical management
project activities.

○

P25
P26
P38

• CO2 emissions reached92.2% of fiscal 1999 level.
Total CO2 emissions down
6.8% over previous year.

○

P45
P47

Activity

Environmental for two divisions—amarketing and sales officemanagement
and the Logistics Control
systemOffice (Logistics Center).

E-Products

Prevent global
warmingPrevent air
pollution
Reduceresource
consumption,
promoterecycling• Ongoing development of
products exceedingenergy-saving standard.
- Condensing hot-water
units (for overseas)- Table stoves- Built-in stoves• Development of fanforced gas heater foroverseas market.
• Continue development of
low-NOx hot-water units.
• Implement productassessments.
• Develop lighter-weight
condensing bath water
unit.

E-ProcurementGreenprocurement• Develop green products.
(Promote use of materials
conforming to EProcurement Standard.)• Enhance green
procurement management(chemical management).

E-Factory
Prevent
globalwarming• Push total CO2 emissions
below 93% of fiscal 1999
level.

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Reducewaste
Reducehazardous
chemical
substances• Sustain/improve zero
emission status to boost
recycling rate above 99.5%.
• Promote strategies in linewith waste reduction plans at
each location.
• Promote strategies in linewith hazardous chemical
reduction plans at eachlocation.

• Zero emissions: Average
recycling rate hit 99.9%.
• Waste: Aggregate amountfrom all facilities down by 536
tons.

○

P45
P48

• Aggregate amount from all
facilities down by 23 tons.

○

P48

E-Marketing, E-Service
Expand sales ofhigh-efficiency
products• Aim to sell 160,000 EcoJozu high-efficiency hotwater units, which would
contribute to CO2 emission
decrease of about 23,000tCO2/year.

• Sold 145,000 Eco-Jozu
high-efficiency hot-water
units, contributing to a CO2
emission decrease of 21,000tCO2/year.

ᇞ

P22

Provideinformation on
environmentallyconscious
products• Showcase such products
at trade shows.
• Create and distributecatalogs, flyers andpamphlets.

• Introduced and developed
awareness of such products at
trade shows.
• Created and distributed
catalogs, flyers andpamphlets.

○

P24

○

—

○

P1
P2

○

P27
P28
P38

E-OfficeGreenpurchasing• Sustain green purchasingrate above 95% for officesupplies and officeautomation equipment.

• Achieved green purchasingrate of 98.9%.

E-Mind, Other
Environmental
information
disclosure• Issue Social &Environmental Report for
fiscal 2010.
• Post environment-oriented
information on the Rinnai
website.

• Promote various

Environmental educational activities in line
education and with fiscal 2010 plans for
the Corporation and all its
awarenessplaces of business.

• Issued Social &Environmental Report for
fiscal 2010 in September
2010.
• Uploaded environmentoriented information on the
Rinnai website in September
2010.
• Implemented several
programs, including class for
new employees, classes
geared to job position, andinternal auditor–orientedclasses not only to develop
the skills of people new tothis process but also forexperienced auditors andchief auditors.

*Progress rating ○: Achieved ᇞ: Not achieved X: Not implemented

88Rinnai Social & Environmental Report 2010

Fiscal 2011 Environmental Action Plan
We always assume a new perspective in working toward new targets. In fiscal 2011, all head
office divisions and all companies under the Group umbrella will promote environmental
activities designed to take us further ahead on the environmental road. We aim to expand ourenvironmental management system and enhance our environmental performance.
Activity
Environmental
management
systemBasic Action Plan
• Build a groupwide environmental
management system and improve
environmental performance throughcooperative activities.

Fiscal 2011 Target• Acquire ISO 14001 certification for one
branch and one sales office as well as threeparts centers.

E-Products

Prevent
globalwarmingPrevent air
pollution
Reduceresource
consumption,
promoterecycling• Push Eco-Jozu as the de facto standard,emphasize measures to reduce stand-by
and in-use power consumption, andconstantly develop energy-saving,industry-leading products.

• Develop low-NOx products.
• Save resources by making products andcomponents smaller and more
lightweight, and strive to develop
products conducive to resourcerecycling.

• Develop high-efficiency appliances.
- Condensing heat source products for thedomestic and overseas markets- Remote controls with energy-saving
display function• Reduce stand-by power consumption.
- Yukko Eco-Jozu, and full-scale Eco-Jozu
hot-water and heating system• Develop low NOx condensing hot-water
heater for overseas markets.
• Implement product assessments.
• Develop lightweight condensing products.
- Yukko Eco-Jozu, and full-scale Eco-Jozu
hot-water and heating system• Develop products that conserve water andcut running costs.

E-ProcurementGreenprocurement• Work with suppliers and Group
companies and promote procurement ofparts with an environmental perspective
highlighting resource-saving, energysaving and recycling potential.

• Green product development.
(Promote use of materials conforming to EProcurement Standard)• Enhance green procurement management(chemical management).

E-Factory
Prevent
globalwarming
Reducewaste
Reducehazardous
chemical
substances• Reduce total CO2 emissions more than
10%, based on fiscal 1999 level, by
March 31, 2011.
• Sustain zero emission status and reduce
total waste output by more than 15%,
based on fiscal 2003 level, by March 31
2011.
• Continuously strive to enhance themanagement system for chemicals usedin manufacturing processes and ban or atleast reduce the use of hazardous
chemical substances.

• Push total CO2 emissions below 90% of
fiscal 1999 level.
• Sustain/improve zero emission status toboost recycling rate above 99.5%.
• Promote strategies in line with waste
reduction plans at each location.
• Reduce volume of hazardous chemical
substances—as listed on the Pollutant
Release and Transfer Register—by 50%,
based on the fiscal 2002 level.

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E-Marketing, E-Service• Expand sales of high-efficiency
products.
Cut CO2 emissions from hot-water
units between fiscal 2009 and fiscal
2011 by an aggregate 68,000tCO2/year through use of Eco-Jozu andhybrid hot-water units.

Expand sales ofhigh-efficiency
products

Provideinformation on• Provide information at trade showsenvironmentally and in printed materials, such as
catalogs, flyers and pamphlets.
conscious
products• Cut CO2 emissions from hot-water units
by 31,000t-CO2/year.

• Introduce and promote awareness ofenvironmentally conscious products at
trade shows.
• Create and distribute catalogs, flyers andpamphlets.

E-OfficeGreenpurchasing• Set green purchasing rate above 95%
for office supplies and officeautomation equipment.

• Sustain green purchasing rate above 95%
for office supplies and office automationequipment.

E-Mind, Other
Environmental
information
disclosure
Environmental
education andawareness• Utilize Social & Environmental Reportand Rinnai website to spotlightenvironmental activities and present
environment-oriented information.
• Enthusiastically promote
environmental education and awarenessactivities to employees and continuously
enhance environmental consciousness.

• Issue Social & Environmental Report for
fiscal 2011.
• Upload environment-oriented information
to the Rinnai website.
• Promote various educational activities inline with fiscal 2011 plans for the
Corporation and all its places of business.

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Rinnai Social & Environmental Report 2010

Environmental Accounting
To realize continuous growth while promoting environmental management, we must
accurately quantify the cost of environmental protection and the results achieved. We mustalso ensure that our approaches are effective through appropriate allocation ofmanagement resources. We utilize guidelines set by Japan’s Ministry of the Environment as
the tools in executing these tasks.

We offer environmental accounting on the cost of environmental
protection, the results achieved and the value of economic benefit
derived.
(1) Scope of accounting(2) Period of accounting

Rinnai Corporation
April 1, 2009 to March 31, 2010
(Unit: Ten thousand yen)

Breakdown of Costs forEnvironmental Protection
In the scope ofoperations

Pollution
prevention
Environmental
protection
Resource
recycling

Upstream/downstream
Management activities

Research and development

Community efforts

Key Activities
Mainly efforts to prevent air and waterpollution
Mainly efforts to save energy
Recycling as well as treatment anddisposal of industrial waste
Collection/recycling andvolume/weight reduction of materials
such as product packaging
Mainly monitoring and surveillance ofenvironmental impact
R&D on environmentally conscious
products addressing energy- andresource-saving features and reduction
and/or elimination of hazardous
chemical substances
Mainly community activities andbeautification/greening at places ofbusiness and surrounding areas

Total

Costs
3,473
1,153
3,174
425
7,692
116,846

199
132,962

About environmental protection costs • R&D costs are associated with the development of••environment-related, leading-edge technologies and products
for the gas appliance market as well as products that, basedon Rinnai’s standards, mark an improvement over existingproducts.
Costs covering other applications, which include non–environment-oriented activities, are apportioned according tointernal rules.
The calculations above exclude depreciation and amortization
expense.

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Item

Success ofEnvironmental
Protection
Efforts

On-site results

Upstream/downstream
results

About success of environmental
protection efforts

Economic effectEnvironmental
impact reduction
through use of
products

Saving energy
reducedgreenhouse gases
Low-NOx
products reduced
NOx
High-efficiency
products reduced
CO2

Environmental
ImpactReduction
504t-CO2/year

45t/year

79,519t-CO2/year• The success of environmental protection efforts through•Economic
Effects
Accompanying
Environmental
Protection
Measures

Content

energy-saving efforts and waste reduction is not a change inoverall volume but rather the assumed effect achieved
through associated activities.
The success of environmental protection efforts through theuse of products with the capacity to reduce environmental
impact is not an industry result but rather a year-on-yearcomparison based on Rinnai’s sales of such products. We
determined these estimates based on annual volume overnormal usage.

Item

Costs cut through energy-savings and waste reduction

•

•

•

(Unit: Ten thousand yen)
Economic Effect

1,950

The economic effects achieved through energy-savings andwaste reduction are not increases or decreases in overall costs
but rather an effective amount regarded for its economic
benefit through the associated activities.
Deemed effects, such as avoiding risks and enhanced productsales, fall outside the scope of economic effects because thestandard for evaluation is too vague.
External economic effects, derived mainly through productsthat reduce environmental impact, also fall outside the scopeof economic effects because the results are too difficult to
pinpoint.

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Rinnai Social & Environmental Report 2010

Topics Rinnai Group Environment Awards Programs
Seeking to invigorate environmental protection and resource
conservation activities and promote access to excellent
approaches within the Group, we established the Environment
Prize and the Environment Contribution Prize, effective fromfiscal 2011. These awards programs recognize activities
undertaken by domestic companies under the Rinnai umbrella
to protect the environment and conserve resources over a oneyear period.
Environment Prize
In-house environmental
activities

Environment Contribution
Prize
External environmental
activities

A total of 62 entries have been submitted by domestic Group companies forthe inaugural Environment Prize and Environment Contribution Prize. They
include approaches that contribute to reduced environmental impact,primarily by decreasing the amount of water and energy consumed byproducts in use at the consumer level, as well as social philanthropyemphasizing joint efforts with non-profit organizations and other like-minded
partners. All highlight activities that deliver environment-friendly results on adaily basis.
The screening process, now under way, will narrow the nomination
pool to 15 entries, from which the grand prize winner will be selected.

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Rinnai Social & Environmental Report 2010

Developing Environmentally Conscious Products
Product Development
Environmentally conscious design addresses such issues as measures to prevent global warming,
to facilitate resource recycling, and to reduce the use of substances that have a negative impact on
the environment. Based on this perspective and guided by the keywords safety, peace of mind,
comfort and convenience, we pursue the development and design of products that contribute to
comfortable lifestyles for our customers.

Efforts to Save Energy and Resources
Hybrid Hot-Water/Heating Unit
Optimum energy mix
Energy efficiency ratio of 121%
High-efficiency gas hot-water/heating
unit Eco-Jozu (Efficiency ratio: 90%)

heat pump＋ Air-source(Actual operating efficiency: 400%)*The combination of Eco-Jozu and a heat pump delivers a primary energy efficiency ratio of 121%,
marking the industry’s first hot-water/heating system surpassing energy efficiency of 100%.

Eco-Jozu Series
Hot-water/heating unit RVD-E Series

RVD-2400AW2-1
Lighter weight
45kg  34kg

Smaller (height)
Stand-by power
consumption

75cm  60cm
About 50% reduction(compared withexisting Rinnai
products)

Combi boiler RUF-E Series

RUF-E2400AW
82%  92%
Bathwater heating
efficiency
Hot-water heating
efficiency: 95%
Lighter weight
35kg  31kg
(compared withexisting Rinnai
products)

94

Rinnai Social & Environmental Report 2010

Bathroom Heater/Dryers

RBHM-C415K3U
Added an eco-dryer function to the bathroom heater/dryer that detects bathroom humidity,
determines drying time and stops automatically.
*Eco-dryer function: Reduces energy consumption by drying clothes slowly in cool-breeze mode andthen finishing off in dryer mode.

Commercial-Use High-Speed Oven

Commercial-Use Tabletop Gas Stove

RCK-10AS
Stand-by power consumption

RSB-096SV/127SV
Energy efficiency ratio

0W (4W with conventional model)* First commercial appliance featuring an
indicator light showing the next operation.

Lighter weight

38% (compared with 34% for conventional model)
Grate (change in material and shape)
5.9kg (compared with 8.5kg for conventional model)

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Rinnai Social & Environmental Report 2010

Safety and Peace of Mind, Comfort and Convenience
Good Design Awards

Built-in Gas Stove My Tone Series

In October 2009, Rinnai received Good Design 2009 awards from the Japan Industrial Design
Promotion Organization for six products, including the built-in gas stove My Tone Series. Thesesix products were recognized for environmentally conscious features that save energy andresources.
Encouraging Customers to Be More Energy-Aware by Visualizing Water Volume
Eco-Signal Remote Control
Bathroom remote control
Kitchen remote control

In UseOptimum amount of water

Lights up/ Flashes

Not optimum amount of water

Unlit*The Eco-Signal light goes on to indicate that just the right amount of water is running through theshower or kitchen sink tap.

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Rinnai Social & Environmental Report 2010

Products for Overseas Markets
Forced-Fan Heaters for Australia and New Zealand
RHFE-559FT Series

RHFE-309FT Series

Stand-by power consumption

8.5W energy-savings over existing Rinnai models*Fan-forced heaters pull in air from outside the combustion chamber and then push the warmed air out of
the chamber after combustion.

Built-in Gas Stoves for Taiwan

Taiwan’s mark of good design*These products also won Good Design awards inJapan in 2009.

Four products—RB-27F and 37 and RB-27GF and 37GF—were recognized under Taiwan’s
Good Design Product program.
Lighter weight and longer life: Switch to stainless steel burner trimmed about 2kg of productweight, compared with existing gas stoves featuring cast-iron burners.
Energy-savings: Heating efficiency of 50%, compared with 45% for existing Rinnai models.
Easier cleaning: Stove top is fully sealed.

Voice
The environment and saving energy are two themes taking on
greater importance in Asia, particularly China, Taiwan, Indonesia,
Thailand and Vietnam. Increasingly, equipment, like gas
appliances, must deliver high heating efficiency. Moreover, Asiancuisine, notably Chinese dishes, typically requires cooking overhigh heat, which means stoves with high-heat burners are essential.
I know how essential it is to develop products that meet diverse
lifestyles in every country while ensuring that these products areenvironmentally friendly and energy-saving. I will enthusiasticallypursue the development of environmentally conscious products that
fit the lifestyle choices of customers in every market.

Sadamoto Kato, Kitchen
Design Office, Researchand Development
Headquarters

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Rinnai Social & Environmental Report 2010

Topics Silver at the 2010 Aichi Environmental Awards
The 2010 Aichi Environmental Awards, sponsored by
Aichi Prefecture to promote resource recycling andreduced environmental impact, took place in February
2010. Rinnai took silver at the event for global businessexpansion of high-efficiency combustion appliances andsystems, including latent heat recovery hot-water units.

Winning Point
Rinnai was recognized for its
ability, as a comprehensive heatenergy appliance maker, tocontribute significantly toward
reduced residential consumptionof gas in Japan and around theworld, especially efforts toencourage widespread acceptanceof high-efficiency tankless hotwater units in the United States
where storage-type water heaters
are prevalent.

Hiroyasu Naito, Rinnai President, with award

Wider sales of highefficiency latent heatrecovery hot-water unit
Eco-Jozu

Tankless hot-water units
for U.S. market

Solar water-heating system forAustralian market*Aichi Environmental Awards: This program invites entries from companies and organizations andrecognizes the most excellent examples of pioneering and successfully implemented technologies,
businesses, activities and training. By showcasing these achievements, new production styles andnew lifestyle choices will take root in consumer culture and underpin the formation of a recyclingoriented society.

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Rinnai Social & Environmental Report 2010

Packing
Reduce Use of Containers and Packaging
Packaging Technology and Stronger Products Lessen Need—and Weight—of Packing
Hot-water unit Yukko
We switched from cardboard to pulp molds
for the top cushioning material to reduceweight.
1.55kg  1.48kg(down 4.5%)

Dishwashers
We switched from a double structure to single
structure cardboard box format to reduceweight.
3.3kg  3.0kg(down 9.1%)

 Reuse Packing Materials
To conserve resources, we collect used packing materials. We are also expanding our use of
returnable packing, which can be reused again and again.

Dishwasher
Packing Form

At shipment

At collection

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Rinnai Social & Environmental Report 2010

Recycle Containers and Packaging
The Containers and Packaging Recycling Law obligates manufacturers and user businesses torecycle product containers and packaging discarded by households in an effort to make more
effective use of resources. In accordance with the law, Rinnai has contracted a designatedcorporation that recycles containers and packaging on the Corporation’s behalf.

Home Appliance Recycling Law
Japan’s Home Appliance Recycling Law went into effect April 2001 with the goals to reduce theamount of waste going to landfills and incinerators and to promote more effective use ofresources. Since then, appliances that consumers no longer want to use have been recycled into
new products. Additional appliances came under the scope of this recycling law from April 2009,
and Rinnai now has two products—a unit-style air-conditioner and a clothes dryer—that can be
redirected from the waste pile.

Rinnai Products Subject to the Home Appliance Recycling Law and Guideline Values
Product
Unit-style air-conditioner
Clothes dryer

Recycling Rate Statutory Guideline Value
70%
65%

Fiscal 2010 Results (April 1, 2009 - March 31, 2010)
Product

Unit-style air-conditioner

Clothes dryer

Number of units brought to designatedcollection points
Number of units processed for recycling
Weight of units processed for recycling
Weight of recycled materials
Recycling rate

3,858 units

789 units

3,731 units
154.0 tons
139.5 tons
90%

759 units25.6 tons
22.8 tons
89%*Rinnai’s bathroom and kitchen televisions are incorporated into the building architecture. Consequently,
they fall outside the liquid-crystal television receiver category added to the national recycling law inApril 2009.

Unit-style air-conditioner

Clothes dryer

100Rinnai Social & Environmental Report 2010

Environment-Conscious Monozukuri
Environmental Footprint in Monozukuri
Energy and natural resources (electricity, gas, oil, raw materials)
Inputs
Parts and Raw
Material
Procurement

Product R&D

Mainly iron, stainless steel, copper, brass,aluminum, resin and rubber

Contributes to global warming, air
pollution, ozone layer depletion,water pollution, soil contamination,
noise and odor

Distribution
Contributes to global warming, air pollution, ozone layer depletion, waterpollution, soil contamination, noise and odor

INPUT
Water
Well water
140,000m3

Production

OUTPUT

Technology Development Center
Production Technology Center

Clean water
210,000m3

Energy4 Rinnai factories

Electricity
4,7310,000kWh

Productmanagement and
sales

Gas
City gas
3,960,000m3

7 domestic production companies
under Group umbrella*Scope of report on environmental impact: Back-officedivisions, such as head office marketing and sales
divisions, are included within the scope ofenvironmental reporting from this report.

Customers’ useof products

Released into
the airCO2
37,117 t CO2NOx
39 t
Waste output
15,430 t

Liquefiedpetroleum gas
1,622 ton
Other fuels
2,282 kl(oil equivalent basis)

Released into
water system
280,000 m3

Head officeIntegrated Logistics Center
Components Center
Branches and offices
Training Center

Distribution
Distribution

Contributes to global warming, air pollution

Distribution

Recycling(processing)Contributes to global warming, air pollution,ozone layer depletion, water pollution,soil contamination, noise and odor

Distribution

Waste (landfill)

Contributes to air pollution, water pollution, soil
contamination, noise and odor

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Rinnai Social & Environmental Report 2010

Pursuit of Monozukuri Reforms (Quality No. 1)
Production Technology Center (Monozukuri Center)
Paralleling business expansion overseas, we opened the Production Technology Center to global
development of technologies, especially efforts to build on the repertoire of monozukuri
technologies we have accumulated since our establishment and enhance the precision ofprocessing and automation technologies. The center also functions as a place where staff fromdomestic and overseas Group companies can upgrade their skills.
We will energetically promote environment-conscious business activities through thecenter and the pursuit of innovative technologies. We will achieve this goal by encouraging
widespread adherence to excellent monozukuri practices, such as stated approaches to work that
employees at companies under the Group umbrella are expected to follow.

Production Technology Center

Monozukuri
Optimizing Production Lines
We constantly keep a eye on production lines to pinpoint inefficiencies, such as energy loss, andwe strive to optimize the production system, matched to production volume, based on suchfactors as assembly time and the status of products-in-process.

More compact production lines, shift to cell-based production system
Approaches to reduce products-in-process between operators and to bring about production
maximizing operator expertise have a ripple effect that fosters higher energy-efficiency in suchproducts as air compressors.

Cell-based production (Oguchi Factory)102

Rinnai Social & Environmental Report 2010

Facility Surveillance System
We introduced a computer-based surveillance system that constantly tracks operating status at
facilities. Through a companywide intranet, divisions can also keep up on the status of operations.
This facilitates a quick response in the event of equipment trouble or some other facility issue.
The collection and analysis of data, such as facility operating performance, also contributes topreventative maintenance activities.
(At Rinnai Precision Co., Ltd.)

Screen shot of facility operation status

Collected data

Education
Perpetuating the Monozukuri Spirit
At every factory, we have set up a “monozukuri legacy station,” which accumulates and maintains
accumulated process technologies and new techniques as well as intangible assets, essentially, theinsights gained on-site by experienced employees. This station is a place where newly assigned
employees can acquire monozukuri basics. It is also a place for conveying the essence ofmonozukuri and training employees in such areas as improved efficiency and enhanced
production management.

Training room at the Oguchi Factory

Soldering practice spaceat the Aichi Factory103

Rinnai Social & Environmental Report 2010

Boosting Production System Efficiency
At Rinnai, monozukuri hinges on consistent efforts to achieve improvement. Naturally,
production divisions are in the spotlight, but the scope of strategies to achieve excellence inmonozukuri extends beyond operating proficiency. To prevent losses, especially those caused by
accidents, product defects and equipment malfunctions, and thereby sustain zero status in suchproblem categories, we strive to acquire specialized manufacturing techniques and the capacity toenhance operating methods and processes, which reinforce our ability to eliminate excess inmonozukuri, effectively utilize resources and energy, and minimize impact on the environment. In
this multi-objective effort, we promote Total Productive Maintenance for greater efficiency inproduction systems.

Scene of TPM activity

Voice
In the Stamping Department, in the Production Engineering
Division, we work on stamping dies and molds keeping in mind
yield improvement in the raw materials for press working of sheet
metal as a step toward reduced environmental impact. Specifically,
we aim to minimize the amount of scrap that gets discarded, so weput a lot of effort into stamping processes and mold construction
and utilize computer-aided-engineering and other computer-based
techniques, and we strive to trim the dimensions of the materials
used. We will continue to seek greater yield improvement while
entertaining new approaches for application.

Kenji Inaba, Manager,
Stamping Department,
Production Engineering
Division

Efforts to Prevent Global Warming
From “Team Minus 6%” to “Challenge 25”
Team Minus 6%, a national project introduced in 2005 to fight global warming, was revamped
into a program to curb CO2 emissions and relaunched in January 2010 as the Challenge 25
Campaign with suggestions aimed primarily for implementation at homes and offices. The Rinnai
Group was quick to get involved in this revitalized initiative and is aggressively promoting
activities to curb global warming.

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Rinnai Social & Environmental Report 2010

Participation in Turn-the-Lights-Off Initiatives
We participated in two events—Black Illumination 2009, on June 21, and Tanabata Lights Down,
on July 7—which called on corporate citizens to turn off night-time lights, especially at factories,
to conserve energy and thereby reduce downstream emissions that contribute to global warming.
We switched off exterior lighting, mainly signboards and outdoor lights, and interior lights,
primarily showrooms and offices, for two hours from 8pm to 10pm on those two days, as ourcontribution to reduced electricity consumption.

Green Curtain
We have created green curtains out of morning glories and goya (bitter gourd) over portions ofexterior wall surfaces at factories and offices. The plants not only absorb CO2 throughphotosynthesis but also prevent direct sunlight from pouring in through the windows during the
hot summer months. This keeps inside temperatures down and reduces the need for airconditioning, which in turn decreases energy consumption.

Yanagisawa Manufacturing Co., Ltd.

RB Controls Co., Ltd.

 Improvement Highlights
Lighting at the Head Office
Showroom
In a move to cut energy consumption at thehead office showroom, we switched from
halogen lights to low energy consumption
LED lights.
Reduction in electricity consumption 21,000kWh/year
CO2 emission impact reduction About 8t-CO2/year

Halogen light

Head office showroom

LED light

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Rinnai Social & Environmental Report 2010


 Improvement Highlights
Rooftop Thermal Barrier
A thermal barrier coating was applied to the roofof the south test building at the Technology
Development Center to keep the roof temperaturecooler in summer. A lower rooftop temperature
prevents the temperature inside from rising sohigh and limits consumption of energy forTechnology Development Centerrunning air-conditioners.
Reduction in electricity consumption 1,620kWh/year
Reduction in gas consumption 1,580m3/year
CO2 emission impact reduction About 6.6t-CO2/year

Change in Lighting
We switched from mercury vapor lamp lighting
fixtures to ceramic metal halide lamps at the
Aichi Factory to lower electricity consumption.
Reduction in electricity consumption 5,600kWh/year
CO2 emission impact reduction About 2.1t-CO2/year

Conserving Water
To ensure effective use of water, we attached water-saving devices to taps at the Oguchi Factoryand reduced water consumption.

Water-saving device
Amount of water saved 5,280m3/year

Improving Logistics
Responding to new requirements associated with the amended energy conservation law, which
went into force in April 2006, Rinnai has promoted improvements based on a rationalization planfor energy used in logistics activities that was formulated from the perspective of an owner ofgoods. We properly monitor the status of energy used in procurement and product shipment
activities, and work with our logistics partners to reduce the amount of energy consumed.
CO2 emission impact reduction achieved
About 100t-CO2/year
through improved logistics in fiscal 2010

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Efforts to Reduce Waste
Zero Emissions
We strive to maintain zero emissions and reduce waste output.

Fiscal 2010 Results
Waste output: 94.9% of the previous year
*Definition of zero emissions: More than 99.5% of waste is recycled, leaving just 0.5% or lessin waste destined for the landfill.

Efforts to Curb Generation of Waste
Reduce Waste

 Don’t buy something that will end up as garbage.
 Don’t make waste.
 Return reusable items to respective point of purchase.
 Reuse.
 Recycle.
Process Waste Economically Reduce volume.
Cut unit cost of processing fees.
Turn waste into a valuable commodity.
Boost the value of valuable commodities.
Example of Preventing Waste
Solder gas adversely impacts product quality and turns into waste, so RB Controls Co., Ltd.,
introduced a nitrogen gas generator into its soldering tank to reduce the amount of solder gas
created in the soldering process. Additionally, this had a positive cost effect in that less solder
had to be procured.
Solder gas impact reduction 500kg/year

Soldering tank107

Rinnai Social & Environmental Report 2010

Industrial Waste Disposal
Before outsourcing waste to a business specializing waste processing, we run meticulous
backchecks, including business status, and make on-site visits to confirm conditions. To ensurethat waste is being properly disposed of by contracted providers, we send representatives annuallyto the sites for visual confirmation and to exchange information with service providers. In fiscal
2010, we verified that 30 providers were performing waste management operations in an
appropriate manner.

Facility rounds.

Chemical Substances
Reduce/Eliminate Hazardous Chemical Substances
We are working to reduce, or eliminate altogether, hazardous chemical substances used in our
productions processes so as to minimize the impact of our operations on the environment. We
place the chemicals we use into three categories—eliminate, reduce and monitor—and formulate
strategies to limit our use of hazardous chemical substances. We have achieved good results
through such approaches as a review of materials containing chemicals subject to restrictions andenhancements to processing equipment.
Our target in fiscal 2010 was to bring the use of hazardous chemical substances down atleast 50%, based on the fiscal 2002 level. We exceeded this goal with a decrease of 57%.
Also, enforcement of an amended version of the Pollutant Release and Transfer Register
Law (PRTR Law) as of April 2010 expanded the list of chemicals that require responses, such asconfirmation of released amounts and transfer volume.
Class I Designated Chemical Substances 354  462
Class II Designated Chemical Substances 81  100
We will continue to apply approaches that decrease the amount of hazardous chemicals we use,
and our focus will be on further reviews of the materials we use and more improvements toprocessing equipment.

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Rinnai Social & Environmental Report 2010

 Flow of Chemical Release and Transfer

Example of Reduction in Hazardous Chemicals

Powder-Coating for Applying Color to Small-Lot Products
Since the installation of powder-coating equipment in fiscal 2009, the Seto Factory has steadily
shifted from solvent-based paints to powder-based alternatives as a way to trim its use ofvolatile organic solvents, such as xylene. In fiscal 2010, the factory’s focus was on pure white, apaint color that contains minimal amounts of volatile organic solvents.
Use of solvent-based paints About 260kg/year
Volatile organic compound Xylene: About 30kg/year
impact reduction Ethylbenzene: About 15kg/year

Polychlorinated Biphenyl Waste Management
Polychlorinated biphenyls (PCB), used primarily in the insulating oils of electrical transformers,
capacitors and ballasts, are subject to the Law Concerning Special Measures for Promotion of
Proper Treatment of PCB Waste (PCB Special Measures Law), which makes rules on the storageof PCB-containing equipment tougher and gives companies until July 2016 to safely dispose of
PCB waste or consign the duty to a certified service provider.
Rinnai is moving to address its responsibilities as quickly as possible. PCB-containing
equipment in storage is kept under lock-and-key to prevent loss or damage, and equipment still in
use is carefully monitored, mainly through tagging, so that we can respond appropriately in theevent of equipment failure, however remote that may be.
Treatment of high-concentration PCB waste stored at Rinnai and RT Engineering Co.,
Ltd., was completed as of March 2009.

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Efforts to Prevent Pollution
Preparing for Emergencies
To minimize environmental risk and stop pollution and accidents before they can happen, we
have implemented a number of preventative measures.
All offices run annual drills premised on adverse events, such as environmental accidents.
We have also reviewed procedures setting out actions to take in the even of a crisis and have
prepared emergency provisions. In addition, we perform regular environmental monitoring toverify the status environmental conditions, such as air and water pollution.

Emergency response drill at the Seto Factory.

Environment-Focused Equipment Inspection
We identify equipment with the potential to adversely affect the environment and run concerted
environment-focused inspections on these pieces of equipment on an annual basis. We strive toprevent the occurrence of serious accidents with environmental repercussions through suchapproaches as independent inspections of equipment, operating tests for measuring instruments,and emergency simulations.

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Biodiversity
Our use of various resources and the release of chemicals and waste from our operations into theenvironment give us a connection to biodiversity.
We must understand the natural environment and fully appreciate the importance ofsustaining biodiversity in order to protect it. We are enthusiastically involved in the activities of
the Environmental Partnership Organizing Club and all prefectural clean-up campaigns supported
by private and corporate citizens of Aichi Prefecture to promote development of our home base asa region befitting the title of host for the 10th meeting of the Conference of the Parties to theConvention on Biological Diversity—COP 10—which was held in October 2010 in Nagoya,
Aichi Prefecture.
As a company and as people associated with a company, we must think aboutbiodiversity and seek to sustain a harmonious coexistence with the natural world around us. We
will continue to lower the impact our operations have on the environment and strive to do our partto sustain and protect the rich biodiversity of our planet.

Status of Legal Compliance
Monitoring Compliance by Self-Set Standards
Naturally, we comply with laws and regulations, but we seek to do better than the minimum
required and have set our own benchmarks as targets to achieve. We also perform checks, mainly
daily monitoring, routine evaluations and environmental audits, and strive to reduce the release ofhazardous chemicals and other pollutants into the air and local water systems. We reinforce
equipment operation and maintenance practices and take preemptive action if facility status looks
as though it may exceed the level we deem permissible. If we can meet our own tough standards,
we will surely meet the levels required by government.

Air pollution
Water pollution
Ground subsidence
Noise, odor
Dangerous or hazardous
substances
Worker safety

Waste
Ecosystem

Issues and Principal Associated Laws
Air Pollution Control Law
Water Pollution Control Law, Sewage Law
Industrial Water Law
Noise Regulation Law, Vibration Regulation Law, Offensive
Odor Control Law
Poisonous and Deleterious Substances Control Law
Industrial Safety and Health Law (Chemicals designated by
Ordinance on Prevention of Organic Solvent Poisoning andOrdinance on Prevention of Hazards Due to Specified Chemical
Substances), Fire Defense Law (related to dangerous articles)
Waste Management and Public Cleansing Law
PRTR Law, PCB Special Measures Law

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Soil Surveys
Seto Factory
A soil contamination survey required under the Soil Contamination Countermeasures Law wasundertaken in September 2009 at the Seto Factory, following partial amendment of the land-use
plan for this facility. All measurements were within established environmental standards.

Aichi Factory
A soil contamination survey required under the Soil Contamination Countermeasures Law and amunicipal ordinance enforced by Nagoya concerning environmental protection was undertaken in
March 2010 at the Aichi Factory, following partial amendment of the land-use plan for thisfacility. The survey revealed boron compounds and fluorine compounds exceeding allowablelevels. A groundwater survey was also undertaken. Readings met the established criteria,
indicating that the compounds found at the surface had not leached down to the water table.

 Soil Contamination Survey
Survey location
Number of points checked
Number of points showing
contamination

South Wing
23

East-Side Parking Lot
7

4

4South Wing

East-Side Parking Lot

Boron and its compounds

Fluorine and its compounds

3.5mg/l

3.1mg/l

0.8mg/l
3.5 times

0.8mg/l
3.9 times

Soil Content Survey Results
Name of place wherecontamination foundContaminants exceeding
environmental standards
Maximum concentration
exceeding environmental
standards
Soil concentration standard
Times over standard

Responses
Because the soil survey found values exceeding allowable limits, we duly submitted a soil survey
report to the city of Nagoya in March 2013.
The contaminated soil at the South Wing was excavated and removed in June 2010, andsoil status has been returned to normal.
The east-side parking lot is asphalt-paved, so the fluorine compounds can not fly away orotherwise impact the surrounding area. A look at the geography and history of the location would
indicate that the contamination did not originate from our business activities.

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Chronology of Environmental Activities at Rinnai
March
1993
December
1994

July

1996

March

March
June
1997

October

December

April
1998

September
October

April

1999

July
September
October
February

2000

May
AugustDecember

Drafted Environmental Preservation Action Plan; established
Environment Committee
Won prize at 4th Energy Conservation Vanguard 21 for gas-blasttype high heat griller RGM-4, 6, 8.
Market debut: low-NOx burner built-in hot-water unit (NOx at lessthan 60ppm)
Won top prize at 1st Eco-Design Awards, sponsored by Tokyo Gas,
Osaka Gas and Toho Gas for hot-water unit, fan heater and small
hot-water heater.
Won special prize at 2nd Eco Design Awards for tabletop cooking
stove.
Market debut: absorption-type gas air-conditioner (non-CFC)
Oguchi site acquired ISO 14001 certification covering factory,
Production Engineering Division and Research & Development
Headquarters.
Won prize at 8th Energy Conservation Vanguard 21 for tabletop
oven RSBN-096.
Won grand prize for gas clothes dryer and special awards for small
hot-water heater and for absorption-type gas air-condition at 3rd
Eco-Design Awards.
Market debut: fan heater with air-purifier that traps dust and removes
odors.
Market debut: Yukko V Series, featuring no styrene packing, low
stand-by power consumption and low NOx emissions.
Oguchi Factory (approved facility under revised Energy
Conservation Law) registered as type 2 designated energy
management factory.
Established Environment Division.
Market debut: Ecomax burner and Eco burner–equipped gas cooking
stove.
Market debut: condensing hot-water unit boasting 95% heatefficiency and NOx emissions under 30ppm.
Won Minister of Economy, Trade and Industry award for condensing
hot-water unit at ministry’s 10th Energy Conservation Awards.
Drafted Rinnai Environmental Action Principles.
Published inaugural issue of Environmental Report.
Seto Factory Environment Division acquired ISO 14001
certification.

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January
2001
June
June

2003

OctoberNovember
2004

OctoberJune
2005
September

2006

October

September
2008
October
December
2009

February
January2010

February

April

Won Chunichi Newspaper Prize portion of Chunichi Industrial
Technology Awards for condensing hot-water unit.
Won top technology prize from Japan Gas Association forcondensing hot-water unit.
Won technology award from Japan Gas Association for condensing
hot-water unit.
Won Electric Equipment Packaging Category Award in Good
Packaging division at 2003 Japan Packaging Contest for built-in
75cm-wide glass-top gas cooking stove.
Quality assurance divisions at Aichi Factory and Asahi Factoryacquired ISO 14001 certification.
Won Logistics Award at Japan Packaging Contest 2004 for bathroom
heater/dryer.
Won top technology prize from Japan Gas Association fordevelopment of latent heat recovery high-efficiency hotwater/heating unit.
Got involved in Team Minus 6%, a national movement to prevent
global warming.
Won Electric Equipment Packaging Category Award in Good
Packaging division at Japan Packaging Contest 2006 for gas fanheater.
Gas tankless water heater sold in the United States captured 2008
Super Nova Star Award (Stars of Energy Efficiency) in the UnitedStates from the Alliance to Save Energy.
Won Electric Equipment Packaging Category Award in Good
Packaging division at Japan Packaging Contest 2008 for gas fanheater.
Head office acquires ISO 14001 certification.
Market debut: Eco-Jozu condensing hot-water/heating unit RVD-E
Series.
Market debut: Eco-Jozu condensing combi boiler RUF-E Series
boasting bathwater heating efficiency rate of 92%.
Took silver at Aichi Environment Awards, sponsored by Aichi
Prefecture, for global promotion of high-efficiency combustion
appliances and systems, including latent heat recovery hot-water
units.
Market debut: high-efficiency Hybrid Hot-Water Unit ECO ONE.

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