Corporate Data Management Structure and Corporate Data 2014 (as of March 31, 2014) Corporate Name Head Office 1-10-1 Nakase, Mihama-ku, Chiba-shi, Chiba Prefecture 261-8577, Japan TEL: +81-43-299-0111 URL http://www.kitz.co.jp/english/ Established January 26, 1951 Capital 21,207,084,670 yen Fiscal-year Ended March 31 Stock Exchange Listing First Section of Tokyo Stock Exchange (Code: 6498) Number of Employees 1,211 (Non-consolidated basis) Products Various types of valves, actuated valves, automated control valves, emergency shutoff equipment, systems devices, metal fittings and diverging tube attachable devices, forged products, water supply equipment Main Banks Mizuho Corporate Bank, Ltd., Sumitomo Mitsui Banking Corporation, Mitsubishi UFJ Trust and Banking Corporation, The Bank of Tokyo-Mitsubishi UFJ, Ltd., The Hachijuni Bank, Ltd., The Yamanashi Chuo Bank, Ltd., The Chiba Bank, Ltd. Stock Information http://www.kitz.com/ Board of Directors, Officers (as of June 27, 2014) Directors and Audit & Supervisory Board Members (as of March 31, 2014) Total Number of Authorized Shares 400,000,000 shares Shares Issued and Outstanding 109,218,877 shares President Director Director Director Outside Director Outside Director Audit & Supervisory Board Member Audit & Supervisory Board Member Outside Audit & Supervisory Board Member Outside Audit & Supervisory Board Member Note: The number of shares shown above does not include 11,177,634 shares of treasury stock that were held as of March 31, 2014. Number of shareholders 10,437 General Meeting of Shareholders June Reference Dates Date of resolution of meeting of shareholders: March 31 Year-end dividend: March 31 Interim dividend: September 30 In addition, a public announcement will be made in advance as necessary. Public Announcement Method Electronic announcement However, announcements will be placed in the Nihon Keizai Shimbun in cases where it is not possible to make an electronic announcement. URL for announcements: http://www.kitz.co.jp/ Share Unit Number 100 shares Investment Major Shareholders Name Shareholdings (thousands) 13,338 12.21 Nippon Life Insurance Company 4,542 4.16 The Master Trust Bank of Japan, Ltd. 4,175 3.82 Kitazawa Agent’s Stock Ownership Plan 3,634 3.33 The Chase Manhattan Bank, N.A. London S.L. Omnibus Account 3,453 3.16 Kitazawa Ikueikai Foundation 3,411 3.12 SUMITOMO LIFE INSURANCE COMPANY 2,879 2.64 KITZ Corporation Client Stock Ownership Plan 2,867 2.63 Mizuho Corporate Bank, Ltd. 2,553 2.34 Sumitomo Mitsui Banking Corporation 2,553 2.34 Executive Officers President Chief Executive Officer Senior Executive Officer Managing Executive Officer Executive Officer Executive Officer Executive Officer Executive Officer Executive Officer Executive Officer Executive Officer Executive Officer Executive Officer Notes: 1. The above list of major shareholders does not include the 11,177 thousand shares of treasury stock held as of March 31, 2014. 2. The above number of shares held includes shares associated with trust operations as follows: Japan Trustee Services Bank, Ltd.: 13,338 thousand shares The Master Trust Bank of Japan, Ltd.: 4,175 thousand shares 3. Shares held by SUMITOMO LIFE INSURANCE COMPANY include 86 thousand shares in the variable insurance account and 32 thousand shares in the separate account. 4. The total number of shares used to calculate percentages of shares held does not include 11,177,634 shares of treasury stock. Financial instruments exchange 0.4% Treasury stocks 9.3% Composition of Shareholdings Financial institutions 33.7% Less than 1,000 shares 0.7% 1,000 shares or more 12.3% 10.2% Other domestic companies 12.9% 10,000 shares or more Individuals and others 28.6% 100,000 shares or more 25.1% Foreign companies 15.1% 4 Takafumi Azuma Junichiro Haishima Hirosuke Chihara Akio Mitsufuji Percent of total shares issued (%) Japan Trustee Services Bank, Ltd. Composition of Shareholders Yasuyuki Hotta Toshiaki Natori Masahiko Kondo Takahito Hirashima Shigerou Kusano Kazuyuki Matsumoto 1 million shares or more 51.7% 1 (as of April 1, 2014) Yasuyuki Hotta Toshiaki Natori Masahiko Kondo Takahito Hirashima Yoshihiro Atobe Choji Suzuki Kazuhiko Shimodaira Mitsuo Otaki Toshiyuki Murasawa Taro Kimura Kazuhiko Hirabayashi Tetsuo Sakane Management Structure and Corporate Data 2014 Approvals and Authorizations of the Group’s Principal Plants History 1951 1952 1959 1960 Kitazawa Mfg. Works was established. The Nagasaka Plant was constructed in Nagasaka-cho, Yamanashi, and the Company started manufacturing and selling bronze valves. The Nagasaka Plant received JIS certification for bronze valves. Toyo Metals Co., Ltd., was established and started manufacturing brass rods. 1965 1967 1968 1969 KITZ started using a high-performance automated production system using the most advanced machinery, including automated processing and molding machines from Europe and North America. Company name changed to Kitazawa Valve Co., Ltd. KITZ was the first in Japan to start using a brass hot forging press; started manufacturing and selling brass forged valves. KITZ became a registered trademark. Started manufacturing and selling ductile cast iron valves and stainless steel valves. Started manufacturing and selling butterfly valves. Started manufacturing and selling cast gray iron valves. 1970 1973 1974 1975 Started operations at stainless steel valve casting facility and machining facility at the Nagasaka Plant. Started operations at the Ina Plant. Started manufacturing and selling cast steel valves. Changed Japanese-character company name (still Kitazawa Valve Co., Ltd., in English). 1980 1984 Adopted “CHRYSANTHEMUM-HANDLE® ” for cast bronze valves. Shares listed on the First Section of Tokyo Stock Exchange. Established KITZ Corporation of America in Houston, Texas. Established KITZ Corporation of Taiwan in Kaohsiung, Taiwan. Senior Managing Director Yusuke Shimizu named President & CEO. Established KITZ (Thailand) Ltd., in Samutprakarn, Thailand. The Nagasaka and Ina plants earned ISO 9001 quality management system certification, making KITZ the first Japanese company to receive this certification. 1962 1985 1988 1989 1991 1992 1994 1995 1998 1999 2000 2001 2002 2003 2004 2005 2007 2008 2009 2010 2011 2012 2013 Certification item Certification body KITZ Corporation Nagasaka Plant LRQA ISO 14001 Bureau Veritas Japan Co., Ltd. Certified by Japan Water Works Association Japan Water Works Association (JWWA) API Spec Q1 and 6D American Petroleum Institute (API) Manufacturing plant for PED/CE Marking Products Bureau Veritas Japan Co., Ltd. ISO 9001 / ISO 14001 Manufacturing plant for AD2000-Merkblatt W0 castings TÜV SÜD Manufacturing plant for AD2000-Merkblatt HP0 products TÜV SÜD JIS product certification (JIS B 2062 Sluice valves for water works) KITZ SCT Corporation ISO 9001 / ISO 14001 KITZ Micro Filter Corporation ISO 9001 / ISO 14001 KITZ (Thailand) Ltd. ISO 9001 / ISO 14001 Certified by Japan Water Works Association JIS product certification (JIS B 2011 Bronze, gate, globe, angle and check valves) Certified by Japan Water Works Association Manufacturing plant for PED/CE Marking Products CSA<Canadian Standard Association> FM<Factory Mutual> UL<Underwriters Laboratories> Australian Standard NSF KITZ Corporation Ina Plant ISO 9001 KITZ Corporation of Taiwan LRQA ISO 9001 / ISO 14001 Manufacturing plant for PED/CE Marking Products UL<Underwriters Laboratories> ISO 14001 Bureau Veritas Japan Co., Ltd. Certified by Japan Water Works Association Japan Water Works Association (JWWA) API Spec Q1 and 6D American Petroleum Institute (API) Manufacturing plant for PED/CE Marking Products Bureau Veritas Japan Co., Ltd. The Ina Plant received ISO 14001 certification. KITZ marked its 50th anniversary, announcing a New KITZ’ Statement of Corporate Mission, Action Guide and a Long-term Management Plan “Target 2010.” Managing Director Kimio Kobayashi was named President & CEO. Purchased semiconductor manufacturing machine device business from the former Benkan Group and established KITZ SCT Corporation to operate this business. Established KITZ Corporation of Kunshan in China. Established KITZ Corporation of Shanghai in China. Established KITZ Corporation of Jiangsu Kunshan in China. Purchased the valve business of the former Toyo Valve Co., Ltd., and began business at its reorganized operations. Spun off the KITZ brass bar manufacturing and micro filter businesses to form KITZ Metal Works Corporation and KITZ Micro Filter Corporation. Purchased the brass bar manufacturing business of the former Kyoto Brass Co., Ltd. Established KITZ Corporation of Lianyungang in China. Director and Senior Executive Officer Yasuyuki Hotta was named President & CEO. KITZ Metal Works Corporation and Kyoto Brass Co., Ltd., merged. Perrin GmbH, a ball valve manufacturer in Germany, joined the KITZ Group. JIS product certification (JIS B 2031 gray cast iron valves) Japan Water Works Association (JWWA) (Ministry of Economy, Trade and Industry) Manufacturing plant for AD2000-Merkblatt HP0 products TÜV SÜD 2 Shimizu Alloy Mfg. Co., Ltd. Certification item Certified by Japan Water Works Association ISO 9001 KITZ merged with TOYO Metals Co., Ltd. ISO S.A. of Spain (currently KITZ Corporation of Europe, S.A.) joined the KITZ Group. Changed name to KITZ Corporation and moved the head office to the Makuhari district of Chiba-shi. Established KITZ Engineering Service Co., Ltd. The Chino Plant was first in Japan’s brass bar industry to receive ISO 9002 certification for quality management systems. Shimizu Alloy Mfg. Co., Ltd., joined the KITZ Group, enabling the Group to begin supplying products for water supply systems. The Nagasaka Plant received ISO 14001 certification. Announced the development of KEEPALLOY brass and bronze alloys that are easy to machine and are free of lead for environmental protection. Miyoshi Valve Co., Ltd., joined the KITZ Group. Established a new Long-term Management Plan called KITZ Global Vision 2020 and a new Medium-term Management Plan. Established KITZ Corporation of Asia Pacific Pte. Ltd., in Singapore. Transferred manufacturing operations of Toyo Valve Co., Ltd., to KITZ, changing Toyo Valve into a sales company. KITZ Europe GmbH started operations as European regional headquarters. Purchased Mikuni Engineering (Singapore) Pte. Ltd., an exclusive distributor in Singapore, and began operations as KITZ Valve & Actuation Singapore Pte. Ltd. Business site KITZ Corporation of Kunshan (China) LRQA ISO 14001 Bureau Veritas Japan Co., Ltd. JIS product certification (JIS B 2011 Bronze, gate, globe, angle and check valves) Japan Water Works Association (JWWA) Certified by Japan Water Works Association Japan Water Works Association (JWWA) Manufacturing plant for AD2000-Merkblatt W0 castings TS certification KITZ Corporation of Jiangsu Kunshan (China) ISO 9001 / ISO 14001 Manufacturing plant for PED/CE Marking Products Manufacturing plant for AD2000-Merkblatt HP0 products TS certification KITZ Corporation of Lianyungang (China) ISO 9001 KITZ Corporation of Europe, S.A. (Spain) ISO 9001 / ISO 14001 Manufacturing plant for AD2000-Merkblatt W0 castings Manufacturing plant for PED/CE Marking Products API Spec 6D KITZ Corporation Chino Plant ISO 9001 ISO 9001 / ISO 14001 Manufacturing plant for AD2000-Merkblatt W0 castings Manufacturing plant for AD2000-Merkblatt HP0 products Perrin GmbH (Germany) ISO 9001 API Spec 6D DIN/GOST certification obtained Manufacturing plant for PED/CE Marking Products CRN<Canadian Registration Number> Type Test Certification of Special Equipment (CHINA) Vender Registration Certificate 3 Management and Financial Information 2014 Consolidated Financial Summary Item FY2009 FY2010 FY2011 FY2012 FY2013 96,592 106,059 108,446 111,275 117,355 (24.0) 9.8 2.3 2.6 5.5 6,976 6,341 4,638 6,558 6,470 (3.0) (9.1) (26.9) 41.4 (1.3) 6,248 5,929 4,388 6,521 6,501 (3.5) (5.1) (26.0) 48.6 (0.3) 3,079 3,063 2,480 4,039 3,564 (9.3) (0.5) (19.0) 62.8 (11.8) 97,533 100,138 94,981 99,972 107,583 (3.5) 2.7 (5.2) 5.3 7.6 (Millions of yen) 27,555 30,165 24,290 22,319 23,728 (%) 6.0 5.8 4.7 7.2 5.7 (Yen) 27.23 27.36 22.71 36.98 32.63 PER (Price Earnings Ratio) (Times) 20.0 14.6 15.8 12.8 15.5 Cash dividends per share (Yen) 7.0 7.0 7.5 9.5 10.0 (Millions of yen) 8,759 2,911 (291) 3,366 1,120 Net sales (Millions of yen) Year-on-year (%) Operating income (Millions of yen) Year-on-year (%) Ordinary income (Millions of yen) Year-on-year (%) Net income (Millions of yen) Year-on-year (%) Total assets (Millions of yen) Year-on-year (%) Interest-bearing liabilities ROE (Return on equity) EPS (Earnings per Share) Free cash flows Consolidated Financial Highlights Net Sales Operating Income Ordinary Income (Millions of yen) 150,000 (Millions of yen) 8,000 117,355 111,275 108,446 106,059 100,000 96,592 8,000 6,976 6,000 (Millions of yen) 6,558 6,470 6,341 6,000 6,248 4,638 4,000 4,000 2,000 2,000 6,521 6,501 5,929 4,388 50,000 0 0 FY2009 FY2010 FY2011 FY2012 FY2013 0 FY2009 FY2010 FY2011 FY2012 FY2013 FY2009 FY2010 FY2011 FY2012 FY2013 Note: Free cash flows = Cash flows from operating activities + Cash flows from investing activities Net Income (Millions of yen) 4,039 4,000 3,000 3,079 3,063 New Material Anti-Corrosive Lead-Free Brass Bars Jointly Developed In recent years, regulations against lead and cadmium contained in copper alloys have been strengthened in Japan and overseas. For example, in the European Union (EU), cadmium has already been strictly regulated by environmental regulations, as exemplified by the RoHS Directive 2002/95/EC (Restriction of the use of certain Hazardous Substances) and the ELV (End-of Life Vehicles) Directive. Additionally, in the United States, a revision to the Safe Drinking Water Act (SDWA) made the use of lead-free copper alloys in materials for water-supply piping mandatory from January 2014. Under these circumstances, KITZ Metal Works Corporation, a member company of the KITZ Group, jointly developed with KITZ Corporation the new materials “XA Metal” and “XC Metal” anti-corrosive lead-free brass bars and “XE Metal,” a lead-free brass bar for general use. These materials have high recyclability and excellent machinability. These new lead-free brass bars have become available on the market since September 2013. Unlike conventional lead-free brass bars, the materials do not contain such chemical elements as silicon or bismuth, so they do not have to be segregated from other recyclable materials, leading to high recyclability. Moreover, “XA Metal” and “XC Metal,” patent pending, show the excellent performance of corrosion resistance against dezincification, stress corrosion cracking, erosion and corrosion, characteristics needed for materials used in water handling equipment. We will supply these new materials to the markets around the world for lead-free applications either as a bar material or a complete valve. Image of anti-corrosive lead-free brass bars (Millions of yen) 120,000 3,564 TOPIC Total Assets 2,480 2,000 10 107,583 100,138 99,972 100,000 97,533 94,981 9.5 8 7.0 80,000 7.0 (Yen) 10.0 7.5 6 60,000 4 40,000 1,000 2 20,000 0 0 FY2009 FY2010 FY2011 FY2012 FY2013 Sales by Reportable Segments Brass Bar Manufacturing Business 20,953 (17.8%) Other 8,514 (7.3%) FY2013 0 FY2009 FY2010 FY2011 FY2012 FY2013 Operating Income by Reportable Segments Brass Bar Manufacturing Business 548 (5.8%) Other 285 (3.0%) FY2009 FY2010 FY2011 FY2012 FY2013 Sales by Geographical Area Other 5,007 (4.3%) North America 8,488 (7.2%) Asia and Middle East 18,888(16.1%) FY2013 FY2013 Total 117,355 Total 9,430 Total 117,355 Valve Manufacturing Business 87,888 (74.9%) Valve Manufacturing Business 8,597 (91.2%) Japan 84,970 (72.4%) (Millions of yen) (Millions of yen) Lead-free valves for North America Note: Operating income by reportable segments shows figures before adjustments for company-wide expenses and others. 4 Cash Dividends per Share 1 (Millions of yen) Management and Financial Information 2014 Consolidated Financial Statements Long-term Management Plan “KITZ Global Vision 2020” The KITZ Group formulated its “KITZ Global Vision 2020,” a Long-term Management Plan in May 2010. KITZ Global Vision 2020 Slogan Evolution to become a fully global company Maximize corporate value by full globalization Balance Sheets Item ASSETS Total current assets Total fixed assets Property, plant and equipment Intangible assets Investments and other assets Total assets Revitalization of our operations as a dynamic and conscientious group of companies FY2020 Numerical Targets (Consolidated Basis) Net sales Operating income Operating income ratio Overseas sales ratio Interest-bearing liabilities Equity ratio ROE (Return on equity) 250,000 million yen 20,000 million yen 8.0% 50% 24,000 million yen 70% 7% Statements of Income (Millions of yen) FY2012 (As of Mar. 31, 2013) FY2013 (As of Mar. 31, 2014) Net sales Cost of sales Gross profit Selling, general and administrative expenses Operating income Non-operating income Non-operating expenses Ordinary income Extraordinary income Extraordinary loss Income before income taxes and minority interests Income taxes Income before minority interests Minority interests Net income (Millions of yen) Item LIABILITIES Total current liabilities Total long-term liabilities Total liabilities NET ASSETS Total shareholders’ equity FY2012 (As of Mar. 31, 2013) FY2013 (As of Mar. 31, 2014) 20,703 20,101 40,805 21,149 18,603 39,752 Shooting for the Top Market Share in Targeted Market Areas and Sectors • Joining the Ranks of the World’s Top 3 Valve Producers 60,394 62,865 Total accumulated other comprehensive income (1,151) 2,836 Minority interests Total net assets Total liabilities and net assets 977 60,219 99,972 1,075 66,777 107,583 Key Concept for Brass Bar Manufacturing Business Targeting Higher-Value-Added Business by Drastically Streamlining Operations and Developing New Materials and New Ventures Key Concept for Other Offering World-Class Customer-Oriented Services (Creation of touching experiences) Reinforcement of Business Infrastructure (Human Resources) Global Recruitment and Cultivation of Human Resources Reinforcement of Business Infrastructure (IT / Accounting System) Investment for Reformation of Information Control Systems for Group Operations Reinforcement of Business Infrastructure (Environment) Promoting Environment-friendly Management for Preservation of the Global Environment Reinforcement of Business Infrastructure (CSR: Corporate Social Responsibility) Legal Compliance and Internal Control Management Social Contribution 2 Item ASSETS Total current assets Total fixed assets Property, plant and equipment Intangible assets Investments and other assets Total assets Item LIABILITIES Total current liabilities Total long-term liabilities Total liabilities NET ASSETS Total shareholders’ equity (As of Mar. 31, 2013) FY2013 Item 29,389 55,062 20,256 1,912 32,893 84,452 Net sales Cost of sales Gross profit Selling, general and administrative expenses Operating income Non-operating income Non-operating expenses Ordinary income Extraordinary income Extraordinary loss Income before income taxes Income taxes Net income FY2013 (As of Mar. 31, 2014) 17,017 14,986 32,004 15,218 16,052 31,271 50,381 51,070 Total valuation and translation adjustments 1,666 2,109 Total net assets Total liabilities and net assets 52,047 84,051 53,180 84,452 7,885 (4,519) (3,213) 253 406 5,635 6,042 Statements of Income (Millions of yen) FY2012 (Millions of yen) FY2013 4,667 (3,546) 66 694 1,881 6,042 7,923 Notes: Amounts less than the unit expressed are omitted. These financial statements show major items only. (As of Mar. 31, 2013) (As of Mar. 31, 2014) 29,649 54,401 20,459 1,710 32,231 84,051 117,355 90,379 26,976 20,505 6,470 734 703 6,501 157 132 6,526 2,906 3,619 55 3,564 (Year ended (Year ended Mar. 31, Mar. 31, 2013) 2014) Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities Effect of exchange rate changes on cash and cash equivalents Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year (Millions of yen) FY2012 111,275 85,071 26,203 19,645 6,558 662 698 6,521 23 207 6,337 2,262 4,075 35 4,039 FY2012 Item Balance Sheets FY2013 Statements of Cash Flows Non-consolidated Financial Statements Key Concept for Valve Manufacturing Business Global & Domestic (Millions of yen) FY2012 (Year ended (Year ended Mar. 31, Mar. 31, 2013) 2014) Item 55,866 51,717 36,835 3,315 11,566 107,583 49,956 50,016 35,811 3,269 10,935 99,972 Develop global level business locations with composite functions of sales, marketing, engineering, stock, maintenance and service Highly secured rate of profits and cash flow Continuous development of our corporate value and social contributions by improving our values to the customer, our employees’ quality of life and mutually beneficial business with our partners Notes: Amounts less than the unit expressed are omitted. These financial statements show major items only. 3 (Millions of yen) FY2012 FY2013 65,188 49,962 15,225 11,757 3,468 876 490 3,853 54 75 3,831 1,290 2,541 64,438 50,144 14,294 11,750 2,543 1,178 446 3,275 149 68 3,355 1,573 1,782 (Year ended (Year ended Mar. 31, Mar. 31, 2013) 2014) Group Network 2014 Overseas Network Head Office Marketing Bases Sales Bases Production Bases Production & Sales Bases Domestic Network Sales Bases Tokyo Office KITZ Corporation KITZ (Thailand) Ltd. (Thailand) 426 Moo17 Bangna-Trad Rd., T. Bangsaothong A. Bangsaothong, Samutprakarn 10540, Thailand TEL: +66-2-315-3129~31 (Manufacturing and sales of copper alloy valves and butterfly valves) KITZ Corporation of Jiangsu Kunshan (China) No.188, Zhongyang Road, B Zone, Kunshan Comprehensive Free Trade Zone, Jiangsu Province, P.R. China, 215300 TEL: +86-512-5771-6078 (Manufacturing and sales of carbon steel valves) U.S.A. Tokyo Sales Group No. 1 Onward Park Building, 3-10-5 Nihombashi, Chuo-ku, Tokyo 103-0027, Japan TEL: +81-3-6836-1501 Head Office 1-10-1 Nakase, Mihama-ku, Chiba-shi, Chiba Pref. 261-8577, Japan TEL: +81-43-299-0111 KITZ Corporation of America 10750 Corporate Drive, Stafford, Texas 77477, U.S.A. TEL: +1-281-491-7333 (Sales, marketing and distribution of valves) Tokyo Sales Group No. 2 Onward Park Building, 3-10-5 Nihombashi, Chuo-ku, Tokyo 103-0027, Japan TEL: +81-3-6836-1501 KITZ SCT America Corporation 1183 Bordeaux Drive, Suite 15 Sunnyvale, California 94089, U.S.A. TEL: +1-408-747-5546 (Sales, marketing and distribution of valves and fittings for semiconductor production facilities) KITZ Corporation of Taiwan (Taiwan) 5-26 East Street, N.E.P.Z., Kaohsiung, Taiwan (R.O.C.) TEL: +886-7-361-1235 (Manufacturing and sales of stainless steel and carbon steel valves and joints) KITZ Corporation of Shanghai (China) Room 1701-1704, International Corporate City, No. 3000 North ZhongShan Rd.,PuTuo District, Shanghai, P.R. China, 200063 TEL: +86-21-6439-1249 (Sales, marketing and distribution of valves) KITZ Corporation of Lianyungang (China) No. 16 Yun Yang Road, Lianyungang Economic and Technical Development Zone, Jiangsu, Province, P.R. China, 222047 TEL: +86-518-8236-6061 (Manufacturing and sales of carbon steel valves) KITZ Corporation of Kunshan (China) No. 15 Taihu South Road Economic and Technology Development Zone, Kunshan, Jiangsu, P.R. China, 215300 TEL: +86-512-5763-8181 (Manufacturing and sales of stainless steel valves) Chiba Sales Group 1-10-1 Nakase, Mihama-ku, Chiba-shi, Chiba Pref. 261-8577, Japan TEL: +81-43-299-1706 Yokohama Sales Group Meiji Yasuda Life Radio Nippon Building, 5-85 Chojamachi, Naka-ku, Yokohama-shi, Kanagawa Pref. 231-0033, Japan TEL: +81-45-253-1095 Europe KITZ Corporation of Europe, S.A. (Spain) Ramon Vinas, 8, 08930 Sant Adria de Besos Barcelona, Spain TEL: +34-9346-21408 (Manufacturing and sales of stainless steel and carbon steel ball valves) Tokyo Sales Promotion Group Onward Park Building, 3-10-5 Nihombashi, Chuo-ku, Tokyo 103-0027, Japan TEL: +81-3-6836-1503 Air Conditioning and Instrumentation Planning Group Onward Park Building, 3-10-5 Nihombashi, Chuo-ku, Tokyo 103-0027, Japan TEL: +81-3-6836-1502 Industrial Sales Development Group Onward Park Building, 3-10-5 Nihombashi, Chuo-ku, Tokyo 103-0027, Japan TEL: +81-3-6836-1501 KITZ Europe GmbH (Germany) Siemensstraße 1, D-61130, Nidderau, Germany TEL: +49-0-6187-928-100 (Sales and marketing for Europe) KITZ SCT Corporation of Kunshan (China) 8-3, No.3 Road, Export Processing A Zone, Kunshan, Jiangsu, P.R. China, 215300 TEL: +86-512-5735-0700 (Manufacturing and sales of valves and fittings for semiconductor production facilities) Hokkaido Branch Hokkaido Sales Group 12-1-25 Kita 14 Jo Higashi, Higashi-ku, Sapporo-shi, Hokkaido Pref. 065-0014, Japan TEL: +81-11-733-2225 Perrin GmbH (Germany) Siemensstraße 1, D-61130, Nidderau, Germany TEL: +49-0-6187-928-0 (Manufacturing and sales of steel ball valves) Tohoku Branch Tohoku Sales Group Asahi Seimei Sendai Ichibancho Building, 2-7-17 Ichibancho, Aoba-ku, Sendai-shi, Miyagi Pref. 980-0811, Japan TEL: +81-22-224-5335 Head Office Sales Bases Production Bases Production & Sales Bases Others 4 Water Supply Product Sales Group - Tohoku Asahi Seimei Sendai Ichibancho Building, 2-7-17 Ichibancho, Aoba-ku, Sendai-shi, Miyagi Pref. 980-0811, Japan TEL: +81-22-224-5335 1 Group Network 2014 Domestic Network KITZ Group Kita-Kanto Branch Kita-Kanto Sales Group Sakamoto-2 Building, 3-306-1, Miyaharacho, Kita-ku Saitama-shi, Saitama Pref. 331-0812, Japan TEL: +81-48-651-5260 Niigata Sales Group Nissai Minamisasaguchi Building, 1-1-54 Minamisasaguchi, Chuo-ku, Niigata-shi, Niigata Pref. 950-0912, Japan TEL: +81-25-243-3122 Chubu Office Nagoya Sales Group No.1 48KT Building, 3-9-37 Meieki Nishi-ku, Nagoya-shi, Aichi Pref. 451-0045, Japan TEL: +81-52-562-1541 Nagoya Sales Group No.2 48KT Building, 3-9-37 Meieki Nishi-ku, Nagoya-shi, Aichi Pref. 451-0045, Japan TEL: +81-52-562-1541 Tokai Sales Group Sumitomo Life Shizuoka Tokiwacho Building, 2-13-1 Tokiwacho, Aoi-ku, Shizuoka-shi, Shizuoka Pref. 420-0034, Japan TEL: +81-54-273-7337 Hokuriku Sales Group S.F Building, 4-7-14 Futakuchimachi, Toyama-shi, Toyama Pref. 939-8211, Japan TEL: +81-76-492-4685 Koshin Sales Group 5125 Kanazawa, Chino-shi, Nagano Pref. 391-0012, Japan (located in Chino Plant) TEL: +81-266-71-1441 Osaka Office Osaka Sales Group No.1 Osaka Glen Check Building, 1-34-15 Shinmachi, Nishi-ku, Osaka-shi, Osaka Pref. 550-0013, Japan TEL: +81-6-6541-1178 Osaka Sales Group No.2 Osaka Glen Check Building, 1-34-15 Shinmachi, Nishi-ku, Osaka-shi, Osaka Pref. 550-0013, Japan TEL: +81-6-6533-1715 Osaka Sales Group No.3 Osaka Glen Check Building, 1-34-15 Shinmachi, Nishi-ku, Osaka-shi, Osaka Pref. 550-0013, Japan TEL: +81-6-7636-1060 Building Utility Product Group Osaka Glen Check Building, 1-34-15 Shinmachi, Nishi-ku, Osaka-shi, Osaka Pref. 550-0013, Japan TEL: +81-6-6541-1357 Air Conditioning and Instrumentation Planning Group Osaka Glen Check Building, 1-34-15 Shinmachi, Nishi-ku, Osaka-shi, Osaka Pref. 550-0013, Japan TEL: +81-6-6533-0350 Chugoku Branch Hiroshima Sales Group NBF Hiroshima Tatemachi Building, 2-27 Tatemachi, Naka-ku, Hiroshima-shi, Hiroshima Pref. 730-0032, Japan TEL: +81-82-248-5903 Okayama Sales Group Mitsui Life Okayama Building, 8-29 Saiwaicho, Kita-ku, Okayama-shi, Okayama Pref. 700-0903, Japan TEL: +81-86-226-1607 Kyushu Branch Kyushu Sales Group ZS Fukuoka Building, 3-4-2 Higashihie, Hakata-ku, Fukuoka-shi, Fukuoka Pref. 812-0007, Japan TEL: +81-92-431-7877 Project Division Market Development Department 1-10-1 Nakase, Mihama-ku, Chiba-shi, Chiba Pref. 261-8577, Japan TEL: +81-43-299-1741 Department of Overseas Operation 1-10-1 Nakase, Mihama-ku, Chiba-shi, Chiba Pref. 261-8577, Japan TEL: +81-43-299-1730 Control Valve Sales Group 1-10-1 Nakase, Mihama-ku, Chiba-shi, Chiba Pref. 261-8577, Japan TEL: +81-43-299-1773 Plants KITZ Corporation Nagasaka Plant 2040 Nagasaka Kamijo, Nagasakacho, Hokuto-shi, Yamanashi Pref. 408-8515, Japan TEL: +81-551-20-4100 KITZ Corporation Ina Plant 7130 Higashiharuchika, Ina-shi, Nagano Pref. 399-4496, Japan TEL: +81-265-78-1111 Water Supply Product Sales Department Water Supply Product Sales Group No.1 1-10-1 Nakase, Mihama-ku, Chiba-shi, Chiba Pref. 261-8577, Japan TEL: +81-43-299-1760 Kita-Kanto Office Sakamoto-2 Building, 3-306-1, Miyaharacho, Kita-ku Saitama-shi, Saitama Pref. 331-0812, Japan TEL: +81-48-651-5260 Yokohama Office Meiji Yasuda Life Radio Nippon Building, 5-85 Chojamachi, Naka-ku, Yokohama-shi, Kanagawa Pref. 231-0033, Japan TEL: +81-45-253-1095 Nishi-Tokyo Office ALUB Tachikawa Building, 2-3-28, Nishikicho, Tachikawa-shi, Tokyo 190-0022, Japan TEL: +81-42-595-9241 Water Supply Product Sales Group - Kansai Osaka Glen Check Building, 1-34-15 Shinmachi, Nishi-ku, Osaka-shi, Osaka Pref. 550-0013, Japan TEL: +81-6-7636-1061 2 Shimizu Alloy Mfg. Co., Ltd. 928 Higashinonamicho, Hikone-shi, Shiga Pref. 522-0027, Japan TEL: +81-749-23-3131 (Manufacturing and sales of water works valves) Production Bases and Training Center Project Sales 1st Group 1-10-1 Nakase, Mihama-ku, Chiba-shi, Chiba Pref. 261-8577, Japan TEL: +81-43-299-1719 Project Sales 2nd Group 1-10-1 Nakase, Mihama-ku, Chiba-shi, Chiba Pref. 261-8577, Japan TEL: +81-43-299-1719 Toyo Valve Co., Ltd. Onward Park Building, 3-10-5 Nihombashi, Chuo-ku, Tokyo 103-0027, Japan TEL: +81-3-6262-1652 (Sales of valves and system equipment) KITZ Corporation Chino Plant 5125 Kanazawa, Chino-shi, Nagano Pref. 391-0012, Japan TEL: +81-266-82-0170 KITZ SCT Corporation Omorieki Higashiguchi Building, 1-5-1 Omori kita Ota-ku, Tokyo 143-0016, Japan TEL: +81-3-6404-2171 (Manufacturing and sales of valves and fittings for semiconductor production facilities) Nitta SC Plant Miyoshi Valve Co., Ltd. 1-10-1 Nakase, Mihama-ku, Chiba-shi, Chiba Pref. 261-8577, Japan TEL: +81-43-299-1734 (Sales of valves for building utilities and freezing and refrigeration equipment) YKV Corporation 1-10-1 Nakase, Mihama-ku, Chiba-shi, Chiba Pref. 261-8577, Japan TEL: +81-43-299-1773 (Manufacturing, sales and services of control valves for various applications) KITZ Engineering Service Co., Ltd. 1-7-59 Akanehama, Narashino-shi, Chiba Pref. 275-0024, Japan TEL: +81-47-452-0585 (Maintenance services for valves) Hotel Beniya Co., Ltd. 2-7-21 Kogan-dori, Suwa-shi, Nagano Pref. 392-8577, Japan TEL: +81-266-57-1111 (Operation of hotel and restaurants) KITZ G&I Co., Ltd. 2575 Nagasaka Kamijo, Nagasakacho, Hokuto-shi, Yamanashi Pref. 408-0021, Japan TEL: +81-551-32-5800 (Insurance agency business and real estate buying and selling, brokerage and management) KITZ Micro Filter Corporation 2983 Shiga, Suwa-shi, Nagano Pref. 392-0012, Japan TEL: +81-266-52-0002 (Manufacturing and sales of fluid separation products for filters and related products) KITZ Metal Works Corporation 7377 Kobayakawa, Miyagawa, Chino-shi, Nagano Pref. 391-8555, Japan TEL: +81-266-79-3030 (Manufacturing and sales of copper and processed products) KITZ Corporation supports the public interest incorporated foundation Kitazawa Museum of Art as a part of social contribution activities. Kitazawa Museum of Art 1-13-28 Kogan-dori, Suwa-shi, Nagano Pref. 392-0027, Japan TEL: +81-266-58-6000 Overseas Network Marketing Bases, KITZ Corporation Korea Training Center KITZ Training Center 3332-1239 Kamisasao Shinohara, Kobuchisawa-cho, Hokuto-shi, Yamanashi Pref. 408-0041, Japan TEL: +81-551-36-3971 KITZ Corporation (Korea Liaison Office) 10th Floor, Seoul Finance Center, 136, Sejong-daero, Jung-gu, Seoul, 100-768, Korea TEL: +82-2-6959-2450 U.A.E. India KITZ Corporation (India Liaison Office) 805 Meadows, Sahar Plaza, Off Andheri Kurla Road, Andheri East, Mumbai 400 059, India TEL: +91-22-40154202 KITZ Group Asia KITZ Corporation of Asia Pacific Pte. Ltd. (Singapore) No.22 Pioneer Crescent, #03-06 West Park BizCentral, Singapore 628556 TEL: +65-6339-0350 (Sales, marketing and distribution of valves) KITZ Valve & Actuation Singapore Pte. Ltd. No.22 Pioneer Crescent, #03-06 West Park BizCentral, Singapore 628556 TEL: +65-6861-1833 (Sales and maintenance of valves) 3 KITZ Corporation (Dubai Branch) 6EA501 Dubai Airport Free Zone, P.O. Box 293545, Dubai-U.A.E. TEL: +971-(0)4-701-7524 KITZ Group Environmental Report Digest 2014 KITZ Group Principle of Environmental Activities KITZ Group companies aspire to become operations worthy of society’s confidence through the supply of environmentally friendly products and services and promotion of environment-responsive corporate activities. KITZ Group Companies: Environmental Action Policy KITZ Group companies shall recognize environmental issues as an essential perspective of corporate management and every employee shall positively participate in the following activities. 1. Development and supply of environmentally friendly products and services 2. Effective use of resources 3. Promotion of reduction, reuse and recycle of waste 4. Prevention of environmental contamination 1 We aim to promote environment-responsive business operations across our entire group while simultaneously pursuing risk prevention and cost reduction The KITZ Group has designated “Group-wide promotion of environmentally conscious management” as one measure for strengthening our business foundation to realize our slogan “Evolution to become a fully global company,” which is articulated in the KITZ Global Vision 2020, a Long-term Management Plan. Based on this, we have set three targets of “Enhancement of Environmental Management System,” “Reduction in Environmental Impact” and “Compliance with Environment-Related Laws and Regulations.” Enhancement of Environmental Management System We have completed certification for ISO 14001 at all our production plants (seven locations) in Japan and will now expand efforts for obtaining ISO 14001 certification to our overseas bases. We will strive to complete the acquisition of ISO 14001 certification in the near future at all overseas manufacturing bases with the aim of building an environment management system as a truly global company. Reduction in Environmental Impact We have set the target of reducing consumption of energy and water used for our business activities and reducing the discharge of carbon dioxide, industrial waste and chemical pollutants from our business operations. We will effectively use finite resources while extensively eliminating waste to reduce environmental impacts in terms of total volume and basic units. Compliance with Environment-Related Laws and Regulations Besides complying with various environment-related laws and regulations for addressing environmental problems amid a tightening of restrictions worldwide, including in Japan, Europe, Asia and the United States, we also engage in activities to eliminate all environmental risk associated with our business activities. The KITZ Group will work in unison to undertake environment-responsive management to attain these three targets based on its policy of achieving a balance between risk prevention and cost reduction. Targets of Environmental Issues in Long-Range Management Projections 1. Enhancement of Environmental Management System 2. Reduction in Environmental Impact ISO 14001 certification and control of environmental issues for overseas manufacturing operations Items to control: CO₂ emissions Energy consumption Industrial waste discharge Final disposal of waste Water consumption Discharge of PRTR target chemicals 3. Compliance with Environment-Related Laws and Regulations Environmental Management Agenda Needed to Accomplish Targets Enhancement of corporate business infrastructure (Group-wide environment-responsive management) Risk prevention Enhancing management system Building the basic structure Cultivation of human resources Visualization Balanced Streamlining action processes Group activities Application of management system 2 Cost reduction Reducing environmentally hazardous substances Combating global warming Common issues (handling waste and water) Care for local communities Prevention of future risk issues Environmental Target and Results in FY2013 We introduced “promotion of Group environment-responsive business operations” in the Second Mid-term Management Plan (FY2013 – FY2015) to promote environmental activities. Forcused subject Actions planned Target for FY2013 Results in FY2013 1. Strengthening environmental management system Enhancement of (1) Change to integrated ISO 14001 Environmental (1) Building the basic structure for (7 domestic bases). Management group-wide environmental management (2) Implement environmental results system System management at overseas production bases (energy, waste materials, others). (1) Completed the Group review in October 2013. (2) KITZ (Thailand) Ltd. begins operation. 2. Establishment of a recycling-oriented society Reduction in Environmental Impact (1) Reducing discharged waste Sales consumption units 8.31t/¥100 million 7.19t/¥100 million (*) (2) Reducing finally disposed waste Sales consumption units 0.41t/¥100 million 0.29t/¥100 million (*) (3) Reducing consumed water resource Sales consumption units 991.43 m3/¥100 million 812.84 m3/¥100 million (*) Sales consumption units 0.32t/¥100 million 0.26t/¥100 million (*) 3. Reduce hazardous chemical substances (4) Reducing discharged PRTR Class-1 chemicals 4. Prevent global warming (5) Reducing energy consumption Sales consumption units 631.57GJ/¥100 million 603.80GJ/¥100 million (*) (6) Reducing CO2 emission Sales consumption units 66.15t-CO2/¥100 million 65.29t-CO2/¥100 million (*) 5. Visualization of environmental risk and responses Compliance with Environment- (1) Legal compliance Related Laws and Regulations (2) PCB to revised Water Quality Pollution (1) Enhanced structure for gathering information Responded Control Act. Completed survey of current situation about law revisions and made responses. as well as of response preparations. (2) Established management system for PCB waste materials at the KITZ Group in Japan Completed disposal of 68 units of high-concentration PCB. (*) KITZ and domestic group companies (except for sales offices) Environmental Data Manufacturers (except for sales offices) Sales offices of manufacturers (data compiled from FY2009) Service companies (data compiled from FY2008) Consumption units at manufacturers (except for sales offices) Energy Consumption (GJ) Energy Consumption Amount (GJ) 800,000 600,000 563.2 513,307 CO2 Emission (ton- CO2) Sales Consumption Units (GJ/Sales (¥100 million)) 508.8 504.3 484.9 511,945 519,427 520,922 400,000 7,332 200,000 6,122 191,228 0 (Base Year) FY2005 FY2011 5,911 191,690 FY2012 183,970 CO2 Emission Amounts (t-CO2) Sales Output (t-CO2/Sales (¥100 million)) 600 100,000 57.9 57.2 450 75,000 59,674 61,460 300 50,000 150 25,000 0 10,000 FY2012 523 14,767 15 0 FY2013 Lead 8.47 8.58 8,843 8,526 7.40 7,954 112 1 FY2011 97 0 FY2012 69 0 2,099 Manganese 8 1,439 Chrome 4 (Base Year) FY2005 FY2011 512 14,805 30 Sales Output (t/Sales (¥100 million)) 5,000 0 574 13,446 (Base Year) FY2005 12 8,974 47,752 Consumption of PRTR Target Chemicals (tons of top 5 items) 15,000 9.85 60 45 53,304 0 FY2013 Discharge of Industrial Waste (ton) Industrial Waste Amounts (t) 53.0 52.4 613 Nickel (metal) 441 Chrome oxide 0 FY2013 312 0 500 1,000 1,500 2,000 2,500 (t) * PRTR target substances, for which annual handling amounts are less than 1t and content is less than 1%, are also compiled. 3 KITZ Group Environmental Report Digest 2014 Overall Image of Environmental Impact Environmental performance points Both CO2 emissions and waste discharge amount in FY2013 have been on the rise compared with the previous fiscal year. Conversely, the amount of water resource use and industrial waste emission has significantly decreased. We will continue to make concerted efforts as a Group to engage in activities to reduce environmental impact. INPUT in FY2013 Major Energies Manufacturers (Sales offices) 98,358 46 10 904 1,829 682 3,223 404 0 Electricity Purchased electric power (1,000 kWh) (1,000 kWh) Solar power generation (1,000 m3) City gas (kl) Bunker A (t) LPG (kl) Kerosene (GJ) Cold and hot water Service companies Clean water Underground water KITZ GROUP 138 276 (1,000 m ) (1,000 m3) Development and Design 1 0 208 327 Procurement 2,099 441 1,439 613 42,107 21,436 Sand for cores and castings (t) Paint and thinner (t) Oil solution (t) 5,472 184 212 Main Auxiliary Materials Water 3 (t) (t) (t) (t) (t) (t) Lead Nickel Manganese Chrome Copper Zinc 14,568 0 2,261 349 172 143 987 19 26 Manufacturers Main Raw Materials Production Logistics Sales OUTPUT in FY2013 Emission in Air Manufacturers (Sales offices) (t) (t) (t) (t) 61,460 4.5 4.2 5.0 523 CO2 Dust NOx SOx Service companies Manufacturers (Sales offices) (t) (t) (t) (t) 7,954 189 5,733 304 0 7 (t) (t) (t) 69 237 0.1 Discharge of Waste 14,767 0.3 9.3 6.5 Industrial waste Non-industrial waste Valuable substances Final disposal Service companies 69 180 39 35 Discharge of PRTR Target Chemicals Air Waste Public water Environmental Accounting in FY2013 Environmental Conservation Costs Category Main actions Breakdown Cost for premises Pollution control Global environment protection Resource circulation Product recycling Administrative duties Research and development Social activities Damaged environment recovery Other costs Total Introduction, purchasing and maintenance of facilities Introduction of facilities and equipment Reduction, recycling and outsourced disposal of waste (Thousand of yen) Capital Expenditures investment 117,027 482,233 38,293 178,880 78,734 89,093 0 214,260 0 8,594 0 66,528 0 116,078 0 560 0 235 0 117,027 0 674,228 Collection and recycling of used goods ISO-related works, environmental measurement and disclosure of environmental information Development of lead-free and other environmentally friendly products Promotion of greening activities Purification of underground water Environmental Conservation Effects Category Effects related with input resources Effects related with output waste and pollutants Total operation costs (A) Total capital investment 3.8% against total operation cost (A) 2,590,964 Total R&D expenditures 1,659,928 7.0% against total operation cost (A) Results in FY2013 FY2013 less FY2012 Consumed total energies (GJ) Consumed PRTR materials (ton) 519,427 704,892 185,466 5,091 4,872 -219 Consumed clean water (m3) Consumed underground water (m3) Greenhouse gas emission (ton-CO2) 135,938 346,197 210,259 408,660 602,742 194,082 59,674 76,227 16,553 358 306 (52) 9,063 8,393 (671) Discharged or displaced chemicals (ton) Discharged total waste (ton) Economic Effects of Environmental Conservation Activities (Thousands of yen) Details of effects Profits Costs for environmental conservation Total costs Results in FY2012 Numerical targets (Unit) Saved expenditures Earned from recycling waste and used products 356,250 Saved by energy saving activities 109,741 Reduced recycling expenditures 197,045 Saved by waste reduction Total 685,729 Scope of compilation is KITZ Corporation (Head Office, Nagasaka, Ina, Chino), KITZ Metal Works Corporation, KITZ Micro Filter Corporation, KITZ SCT Corporation, Shimizu Alloy Mfg. Co., Ltd., KITZ Engineering Service Co., Ltd., KITZ Wellness Co.,Ltd. and Hotel Beniya Co., Ltd. 4 Amount 22,693 KITZ Group Environmental Report Digest 2014 Strengthening Overseas Environmental Management The KITZ Group formulated its “KITZ Global Vision 2020,” a Long-term ■ Business Offices That Have Acquired Integrated ISO 14001 Certification Management Plan, and places promotion of environment-responsive Name of business office business operations as a major item for strengthening its business foundations. In the Environmental Mid-term Plan, we set out a target for all 15 production bases in Japan and overseas to acquire ISO 14001 certification. We will continue to make efforts toward the establishment of global environmental management. KITZ Corporation Nagasaka Plant KITZ Micro Filter Corporation KITZ Corporation Ina Plant KITZ SCT Corporation KITZ Corporation Chino Plant Shimizu Alloy Mfg. Co., Ltd. KITZ Metal Works Corporation Toyo Valve Co., Ltd. Koshin Sales Office ■ Status of Acquisition of ISO 14001 Certification (Overseas) Name of business office Date of acquisition (1) KITZ Corporation of Taiwan November 2000 (2) KITZ (Thailand) Ltd. Bangplee Plant December 2010 (3) KITZ Corporation of Kunshan December 2010 (4) KITZ Corporation of Jiangsu Kunshan (5) KITZ (Thailand) Ltd. Amatanakorn Plant April 2011 February 2012 (6) KITZ Corporation of Europe, S.A. May 2012 Calculation Standards (Results in FY2013) Environmental performance index Calculation method Unit INPUT Energy amount consumed in business activities (GJ) Total energy input amount Raw materials input amount GJ ∑[Each energy annual use amount x each unit calorific value] x 10-3 * Source: Energy supply and demand results in 2012 (final) (published on April 15, 2014) Resources and Energy Agency Electricity: 3.6MJ/kWh Bunker A: 39.8 MJ/L Kerosene: 36.7MJ/L Light Oil: 37.9 MJ/L LPG: 50.8MJ/kg City Gas: 44.8 MJ/m3 Gasoline: 34.6MJ/L GJ Amount of cold and hot water, the heat source, accepted from local cooling and heating system for ventilation use at KITZ Head Office Building (Makuhari New City, Chiba) Ton Annual use amount of raw materials directly used for manufacturing of products (t) Use amount of water m 3 Annual use amount of clean water and underground water (m3) OUTPUT Carbon dioxide (CO₂) emission amounts CO2 emitted from the energy used in business activities (t) * List of calculation method and emission coefficients in the calculation, report and publication system under the Law to Promote Global Warming Countermeasures Electric power (kg-CO2/kWh) Business activities Tokyo Electric Power Company, Incorporated: 0.525 Tohoku Electric Power Co., Inc.: 0.600 Bunker A: 2.76 kg-CO2/L Ton LPG: 3.00 kg-CO2/kg Cold/Hot Water: 0.057 kg-CO2/MJ Kansai Electric Power Company Co., Ltd.: 0.514 Hokuriku Electric Power Company, Incorporated: 0.663 Kerosene: 2.49 kg-CO2/L Chubu Electric Power Co., Inc.: 0.516 Hokkaido Electric Power Co., Inc.: 0.688 Chugoku Electric Power Co., Inc.: 0.738 Kyushu Electric Power Co., Inc.: 0.612 Light Oil: 2.60 kg-CO2/L City Gas: 2.23 kg-CO2/m3 Osaka/Tobu/Kita/Keiyo/Keiwa/Chiba Gas: 2.29 kg-CO2/m3 Tokyo Gas: 2.19 kg-CO2/m3 Bushu Gas: 2.24 kg-CO2/m3 Gasoline: 2.32 kg-CO2/L Dust amount (t) = dust density (g/m3N) x dry exhaust gas amount per unit hour (m3N/h) x annual operation hours (h/year) x 10-6 SOx (t) = sulfur oxide density (ppm) x dry exhaust gas amount per unit hour (m3N/h) x annual operation hours (h/year) x 64/22.4 x 10-9 Waste NOx (t) = nitrogen oxide density (ppm) x dry exhaust gas amount per unit hour (m3N/h) x annual operation hours (h/year) x 46/22.4 x 10-9 Final disposed amount: consigned waste amount (t) x final disposal rate *(%) * General Waste: 10.9% quoted from the Ministry of the Environment, “Status of Discharge and Disposal of General Waste, etc. (Results in fiscal 2012)” Industrial Waste: figures obtained from intermediate waste disposal service responses Target Period: Target period was FY2013 (April 1, 2013 ~ March 31, 2014) and the results for the period are reported. Scope of Reporting: KITZ Corporation and seven group companies in Japan (see website). Policy and Standards for Collection and Reporting of Environmental Performance Information: In compliance with environment-related laws and regulations, the report is published in accordance with the “KITZ Group Environmental Philosophy,” the “KITZ Group Environmental Action Guidelines,” the “KITZ Group Environment, Safety and 5 Health Performance Data Calculation Guidelines” and other environment-related internal regulations. Referenced Guidelines: The Ministry of the Environment, Environmental Report Guidelines (2012 Edition) The Ministry of the Environment, Environmental Accounting Guidebook (2005 Edition) Published: July 2014 Next publication: July 2015 (to be issued every year) KITZ Group Safety and Health Fundamental Philosophy KITZ places the highest priority on safety and health in all of its activities based on the principle of showing respect for people. Group companies conduct extensive safety and health programs with the goal of zero accident. KITZ Group Safety and Health Fundamental Policies 1. KITZ is dedicated to ensuring safety and health for all employees by complying with Japan’s Industrial Safety and Health Act and other associated laws and regulations as well as by adhering to internal rules and standards. 2. KITZ improves safety and health management by educating and training all employees with regard to the knowledge and skills needed for safety and health programs. 3. KITZ is dedicated to ensuring the safety of its machinery and equipment so that employees can do their jobs without concern. 4. KITZ reduces exposure to risk factors with the goal of eliminating potential sources of danger and harm to employees in workplaces. 5. KITZ maintains stimulating and pleasant workplaces that contribute to the mental and physical wellbeing of all employees. Take Preventive Steps and Improve Safety Awareness Through Group-wide Safety and Health Programs KITZ implements measures from the two perspectives of coordinated programs and thorough management by line managers (bottom-up approach via small group activities), with emphasis placed on changing the mindset of each person to improve safety awareness and reform workplace culture. KITZ has formulated the following key actions as measures for employee safety and health with the aims of taking preventive steps for safety and improving safety awareness. Develop a management system (comply with safety and health related laws and regulations) Implement safety measures for machines, equipment and people (prevent similar accidents) Create workplace culture (promote zero accidents) KITZ Group Safety and Health Activities Office safety activities Take preventive steps Develop a management system Create framework Make it visible KITZ Corporation Environmental and Safety Group Improve safety awareness Implement safety measures for machines, equipment and people Measures for equipment and environment Measures for people Create workplace culture Activate small group activities Introduce enlightenment programs 2040 Nagasaka Kamijo, Nagasakacho, Hokuto-shi, Yamanashi Prefecture 408-8515, Japan TEL: +81-551-20-4104 FAX: +81-551-20-4180 Website: http://www.kitz.co.jp/english/about/environment.html 6
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