TOSHIBA PLANT SYSTEMS & SERVICES CORPORATIONTsurumi Toshiba Building, 36-5, Tsurumichuo 4-chome, Tsurumi-ku, Yokohama City, Kanagawa, 230-8691, JapanTEL: +81-45-500-7050 FAX: +81-45-500-7155

C S R R e p o r t 2 0 1 6

http://www.toshiba-tpsc.co.jp/

Company Data

Highlights of Consolidated Financial Results

Company Name Toshiba Plant Systems & Services Corporation

Address of Head Office Tsurumi Toshiba Building36-5, Tsurumichuo 4-chome, Tsurumi-ku, Yokohama City, Kanagawa, Japan

Representative Ryo Matsukawa,President and Chief Executive Officer, Representative Director

Founded October, 1923

Established October, 1938

Paid-in Capital 11,876,021,006 yen

Our Business Engineering, procurement, construction, trial operation, adjustments, and services for facilities and buildings targeting power plants, substations, public facilities and general industry

Number of Employees 4,283 (Consolidated basis), 3,133 (Non-Consolidated basis)

Net sales（Millions of yen）

2014.3 2015.3 2016.3

Ordinary income （Millions of yen）

2014.3 2015.3 2016.3

Profit attributable to owners of parent （Millions of yen）

Total assets （Millions of yen）

Net assets（Millions of yen） Equity ratio（%）

182,257218,652 219,353

16,739 17,687 18,720

9,831 10,04411,242 221,135 229,436 238,254

2014.3 2015.3 2016.3 2014.3 2015.3 2016.3

104,664116,059 121,281

47.2 50.4 50.8

2014.3 2015.3 2016.3 2014.3 2015.3 2016.3

Commitment, Company Data, Highlights of Consolidated Financial Results … 1

Toshiba Plant Systems & Services Group’s Business Domains … 3

Top Message …………………………… 5

Feature: The History of Toshiba Plant Systems & Services Corporation The Path to Becoming an “Excellent Company” … 7

CSR Management ………………………… 9

The Company’s Priorities ………………11

Communication with Stakeholders

Together with Our Customers ………13

Together with Shareholders and Investors …15

Together with Suppliers ………………16

Together with Employees ……………17

Human Life, Environment, Society

Environmental Management …………19

Together With Society and Local Communities …21

Compliance

Corporate Governance …………………25

This report is the company’s first CSR Report. The aim of the report is to provide disclosure related to the company and to allow all its stakeholders to better understand the company’s CSR-related phi losophy and initiatives as a whole.This report details the initiatives and roles that the company plays in society and with respect to the earth through its business activities.

■ Reporting periodThis report generally covers the period from April 2015 through March 2016, but also includes information on activities prior to and after this period.

■ Organizations covered in this reportThis report covers certain group companies with a focus on the Toshiba Plant Systems & Services Corporation.

■ Expected timing of issuance of next reportJuly 2017

■ Reference guidelinesThe international standard for social responsibility

“ISO 26000” was referred to in preparing this report.

Contents

Editing Policy

At Toshiba Plant Systems & Services Corporation, each employee is committed to serving society through the provision of services, products and systems that fulfill customer needs in the field of social infrastructure.

Commitment

Toshiba Plant Systems & Services Corporation places top priority on life, safety and law compliance. At the same time, we will work to build bonds of trust with society, including our customers and shareholders.

Standards of Conduct

An excellent company continuing a profitable and sustainable growthManagement Vision

11 2

Toshiba Plant Systems & Services Group’s Business Domains

Toshiba Plant Systems & Services group emphasizes the building of a social infrastructure that enables people active in all works of society and industry to continually be ensured of security and safety.

The Toshiba Plant Systems & Services Corporation group's principal sphere of business includes the building of a foundation that supports society and industry through the construction of a social infrastructure encompassing power plants and substation facilities, water and sewage facilities, transportation facilities, industrial plants and buildings.We build a social infrastructure that enables people active in all works of society and industry to continually be ensured of security and safety.

Offices, FactoriesTsurumi Office (Head Office, Yokohama City), Kawasaki Office (Kawasaki City), Kawasaki Solid Square Office (Kawasaki City),Isogo Office (Yokohama City), Atsugi Factory (Atsugi City), Atsugi Technology Research & Development Center (Atsugi City), Atsugi Plant Equipment Control Center (Atsugi City)

Offices Fuchu Office (Fuchu City), Keihin Office (Yokohama City), Hama-Kawasaki Office (Kawasaki City)

Branch Offices Tohoku Branch Office (Sendai City), Chubu Branch Office (Nagoya City), Kansai Branch Office (Osaka City), Kyushu Branch Office (Fukuoka City)

Branch OfficesHokkaido Branch Office (Sapporo City), Shinetsu Branch Office (Niigata City), Hokuriku Branch Office (Toyama City), Chugoku Branch Office (Hiroshima City), Power Plant Systems West-Japan Branch Office (Shunan City)

OfficesFukushima Office (Koriyama City), Iwate Office (Kitakami City), Shizuoka Office (Mishima City), Mie Office (Yokkaichi City), Shikoku Office (Takamatsu City), Oita Office (Oita City), Kumamoto Office (Kumamoto City), Okinawa Office (Urasoe City)

Offices Kitakanto Office (Saitama City), Higashikanto Office (Chiba City)

SHIBAURA PLANT CORP.KANSAI TOSHIBA ENGINEERING CORP.TOSHIBA ENGINEERING SERVICE CORP.ES TOSHIBA ENGINEERING CORP.SKS CORP.

Domestic Network Consolidated Subsidiaries (Domestic)

Toshiba Plant Systems & Services Group

PT. TOSPLANT ENGINEERING INDONESIATPSC (INDIA) PRIVATE LIMITEDTPSC ENGINEERING (MALAYSIA) SDN. BHD.TOSPLANT ENGINEERING (THAILAND) CO., LTD.TPSC (THAILAND) CO., LTD.TPSC US CORPORATIONTPSC (VIETNAM) CO., LTD.TPSC PHILIPPINES CORPORATIONAffiliates using equity method accounting (Domestic)

Toshiba Power Systems Inspection Services Co., Ltd.

Consolidated Affiliates (Overseas)

Source: Tokyo Electric Power Company Holdings, Incorporated

Infrastructure and Industrial Systems Division

Power System

s Division

The Power Systems Business provides engineering, construction, testing, trial operation and such maintenance services as inspections and renovations for thermal, hydroelectric and nuclear power plants.

We conduct a broad range of business involving thermal and hydroelectric power plants in Japan and overseas. In particular, we have built up a track record through numerous projects centered in the ASEAN region.

In addition to commercial power plants, we apply our nuclear power technologies at nuclear power plants and related facilities.

The Infrastructure and Industrial Systems Business provides engineering, construction, test operations, adjustments and field services, etc. for social infrastructure and general industrial facilities.

We conduct business for public- and private-sector facilities in a broad range of fields, including electrical facilities and equipment, dispersed power source facilities, substations, transmission and distribution facilities, and other energy-related business, as well as production and related facilities.

3 4

Balancing financial performance and CSR to promote sustainable growth for the group

Top Message

Helping to Build Social InfrastructureToshiba Plant Systems & Services Corporation

(the “Company”) group comprises the Power Systems Div is ion , which engages in the eng ineer ing , const ruct ion , tes t ing , and maintenance of thermal, hydroelectric and n u c l e a r p o w e r p l a n t s , a s w e l l a s t h e Infrastructure and Industrial Systems Division, which handles engineering and construction for social infrastructure such as water and sewage systems, transportation systems, factories, and solar power stat ions, as well as general industrial facilities. Based on a commitment to

“security and safety,” the group companies contribute to the building of important social infrastructure.

In December 2015, the Paris Agreement was adopted at COP21, the 21st meeting of the United Nations Framework Convention on Climate Change (UNFCCC) held in Paris. As a long-term goal shared by countries around the world, this agreement aims to achieve net-zero emissions of greenhouse gases by the second half of this century. Looking at the business activities of the Company group (the “Group”), in recent years the Group has handled a large number of projects for power stations which ut i l ize renewable energy, such as solar ,

our standards of conduct: Toshiba Plant Systems & Services Corporation places top priority on life, safety and law compliance. At the same time, we will work to build bonds of trust with society, including our customers and shareholders.

In May 2016, in order to attract talented people as a part of realizing the management v i s ion o f be ing “an exce l lent company continuing profitable and sustainable growth,” we added the concept of comprehensive capabilities, which represent our strong point, as a combination of workplace capabilities and human capabilities = “engineering capability” to the “Careers” page of the corporate website. This was part of an effort to reach out to students.

Working with Stakeholders to be a “Corporate Citizen of the Earth”

The Group’s business activit ies have a different level and scope of impact on each of our stakeholders, including our shareholders and other investors, customers, suppliers, local communities, government institutions, as well as our employees and their family members. The Group is proactively promoting CSR management in order to provide “security and

hydroelectric, geothermal, and biomass power.Considering global initiatives to combat warming will be stepped up going forward, the Group’s role in these efforts will likely become even more important.

Reviewing CSR Promotion FrameworkI view financial soundness and CSR as the

wheels of corporate management, and believe that both must a lways be pursued in a balanced manner.

The Company’s earnings have been growing steadily. In FY2014, consolidated net sales surpassed ¥200 billion, as the overall group continues to grow sustainably. On the other hand, in order to more clearly present our t h o u g h t s r e g a r d i n g C S R , i n 2 0 1 5 w e systematically reviewed and organized our CSR philosophy and initiatives.

For s tar ters , we estab l i shed our own “Commitment , Management Vis ion , and Standards of Conduct” (refer to Page 1 for details) based on the “Basic Commitment of the Toshiba Group.” The Group is not a pure manufacturing business group. The Group’s main business involves plant engineering to deliver plants that resolve the wide-ranging needs of customers. The above document suits this reality. Our business activities are based on

safety,” and continue to contribute to the advancement of society as a “Corporate C i t i z e n o f t h e E a r t h ” t r u s t e d b y a l l stakeholders.

T o e m p h a s i z e c o m m u n i c a t i o n w i t h stakeholders, the Group continually works to ensure health and safety, quality management and the disclosure of timely and accurate information. In addition, the Group promotes environmental preservation measures and engages in social contribution activities aimed at cont r ibu t ing to sound and sus ta inab le development in key countries and regions in which the Group engages in business.

Also, with the aim of ensuring management soundness and transparency to increase management efficiency and maximize corporate value, the Company established and disclosed clear principles addressing all 73 principles stipulated in the Corporate Governance Code formulated by the Financial Services Agency and the Tokyo Stock Exchange in June 2015.

The Group will continue to maintain and enhance i t s opera t ing per fo rmance by proactively promoting CSR management, and steadily pursue a path towards further growth.

We look forward to your continued support.

December 2016

President and Chief Executive Officer, Representative Director

Ryo Matsukawa

5 6

Feature: The History of Toshiba Plant Systems & Services Corporation

The Path to Becoming an “Excellent Company”

In January 2004, the tradition which had been passed down since 1923 embarked on a new start as Toshiba Plant Systems & Services Corporation through the merger of Toshiba Engineering & Construction Co. Ltd. and Toshiba Engineering Corp.Amid the bewildering pace of change in the business environment, the Company has dealt with issues at each point in its history and boldly striven to achieve sustainable growth as it meets the demands of society. Upon a foundation of reliable technologies and quality cultivated over the course of the Company’s history, the Company will keep earning the trust of society and continue the challenge of growing and developing as a company to be chosen by customers.

Sanko Electric Office Toshiba Engineering & Construction Co. Ltd.

Toshiba Engineering Corp.Toshiba Plant Systems & Services CorporationNoguchi Hiroyasu Electric Constructor’s Office

1923 1978

1959

2004

Toshiba Engineering & Construction Co. Ltd. Toshiba Engineering Corp. Toshiba Plant Systems & Services Corporation

1923 E s t ab l i s hmen t o f o r i g i n a l p a r en t companies Sanko Electric Office and Noguchi Hiroyasu Electric Constructor’s OfficeLater, Sanko Electric Office was renamed Toshiba Electric Engineering Co. Ltd.Noguchi Hiroyasu Electric Constructor’s Office was renamed Toshiba Construction Co. Ltd.

1966 Company name changed to Toshiba Electric Construction Co. Ltd. following the merger of Toshiba Electric Engineering Co. Ltd. and Toshiba Construction Co. Ltd.

1968 Start of full-fledged nuclear power business

1978 Company name changed to T o s h i b a E n g i n e e r i n g & Construction Co. Ltd.

1979 Listed on Tokyo Stock Exchange, Second Section

1983 Reassignment to Tokyo Stock Exchange, First Section

1959 Established as Toshiba Group’s first heavy electric machinery consulting companyLaunch of the plant engineering business

1962 Launch of consulting services re lated to construct ion and auxiliary equipment

1970 Entrance into the plant business for sewer systems

1979 Launch of small hydroelectric power plant business

1985 Entrance into information and communications business

1996 Merger with seven Toshiba Group companies in charge of system development in each region

2001 Spin off of IT engineering division through a stock split

2008●EPC*1 orders received for BOP*2 for Sidi Krir and El Atf combined cycle power plant in Egypt

2009●Complet ion o f const ruct ion o f h igh -p ressu re p ip ing , o f pa r t s inspection center building, and of auto-warehousing system for a large-scale integrated faci l i t ies project for EBARA CORPORATION’s Futtsu District

2010●Completion of work to restore and enhance the earthquake r e s i s t a n c e o f t h e Kashiwazaki -Kar iwa Nuclear Power Station, which had been shut down due to the Niigataken Chuetsu-oki Earthquake

2011●All business divisions focused on efforts to recover from the Great East Japan Earthquake, including the restoration of power plants, securing emergency power sources, restoring rail and airport facilities, and restoring plant facilities in areas affected by the disaster

●Order received to install gas engine power station for Nihon Techno Co. Ltd.’s Sodegaura Green Power, one of the largest in Japan

2012●Enhancement of initiatives for solar, hydroelectric, biomass, and other renewable energy power plants in conjunction with the enactment of the Renewable Energy Special Measures Act

●Completion of work to restore Miyagi Prefecture’s Senen Water Purification Center etc., which had been severely damaged in the Great East Japan Earthquake

2013●Completion of work to restore Tohoku Electric Power Co., Inc.’s Haramachi Thermal Power Station No. 1, which had been severely damaged in the Great East Japan Earthquake

●Completion of the project to enhance the capac i ty o f the Shake pump transporting water towards Isehara, one of the largest projects ever in the public facilities sector

2014●Opening of solar power R&D base and installation of research facilities for solar power plant business in Oyama Town, Sunto District, Shizuoka Prefecture

2015●Completion of construction of Kanagawa Cancer Center’s heavy ion radiotherapy facility; launch of treatment at certain facilities

●Comp le t i on o f on - s i t e t e s t i n g and adjustment work for upgrade project which had been ongoing for five years at Tokyo Gas Co., Ltd.’s Sodegaura LNG Terminal.

2004PrivacyMark certification obtained2005Renewal and expansion of scope of ISO 9001 and ISO 14001 certification obtained2007Next-generation authorization mark “Kurumin” obtained2008Basic ru les for CSR promot ion established

2009Atsugi Factory obtained OHSAS 180012010“Supporting activities of the Solar Lantern project” received the Toshiba’s “ASHITA” Award for its social contribution

2011First Technology Exhibition aimed at improving product quality held2014Safety sensory education held for the 100th time in total2015Election of two Independent Outside Directors201673 principles of the Corporate Governance Code addressed

2006●Order received to construct large facility for Toshiba Corporation’s Yokkaichi Operations

2007●Completion of construction of Sumitomo Metal Industries, Ltd.’s Kashima Thermal Power Station, one of Japan’s largest coal-fired p o w e r p l a n t f o r I P P s (independent power producer)

Toshiba Group CSR Conference

Ion-beam Radiation Oncology Centeri-ROCK

Mega-Solar TsuyazakiNo. 1 Power Station

El Atf Power Plant (Egypt)

EBARA CORPORATIONFuttsu District

January 2004Merger of Toshiba Engineering & Construction Co. Ltd. and Toshiba Engineering Corp.Launch of Toshiba Plant Systems & Services Corporation

Source: Kanagawa Cancer Center

*1 EPC: (Engineering, Procurement, and Construction) A construction contract in which the contractor is responsible for the entire process flow including engineering, procurement, and construction.

*2 BOP: (Balance of Plant) Peripheral equipment besides the main equipment at a power plant7 8

CSR Management

Action Policy Activity Themes Specific Activities

Comm

unication with Stakeholders

Customers

As a company that supports society and industry, we deliver quality infrastructure and services that can please many people in society.We conduct business activities with customers in the fields below. Power Systems DivisionHandles a part of the function of Toshiba Corporation’s field work for commercial power generation facilities for power companies, and we are developing a proprietary business for industrial power generation facilities.Infrastructure and Industrial Systems DivisionHandles business for public- and private-sector facilities in a broad range of fields, including electrical facilities and equipment, dispersed power source facilities, substations, transmission and distribution facilities, and other energy-related business, as well as production and related facilities.

Maintain quality management · In accordance wi th ISO 9001, we maintain quality management systems and work to improve quality

Enhancement of quality · We continually implement PDCA cycles in order to improve quality

Raise customer satisfaction level

· We str ive to provide services that contribute to solving social issues

ShareholdersInvestors

We carry out business operations that meet the expectations of our shareholders and other investors, and strive to provide timely and accurate information disclosure. Enhancement of corporate value · We work to ensure a stable share price, market

capitalization, and dividend payout ratio.

Suppliers

Based on the understanding that our business depends on cooperation and support from suppliers and partner companies, we make sure to engage in fair, transparent and free competition and engage in appropriate business transactions. By doing so, we create relationships in which all parties can co-exist and prosper.

Ensuring transparent and fair business transactions

· We continually provide training related to transparent and fair business transactions· We work to eliminate anti-social forces

CSR promotion in the supply chain (Consideration of human rights, labor practices, the environment)

· We check on the status of our suppliers’ CSR initiatives

Employees

Tosh iba P lan t Sys tems & Se rv i ces Corporation has approximately 3,100 employees , wh i le i nc lud ing g roup companies (5 domestic, 8 overseas), there are roughly 4,300 employees. We view diverse personnel and working styles positively, and work on a global basis to create work environments that lead to imagination and competitiveness for our businesses.

Training and utilization of personnel

· We implement measures to increase our competitiveness by improving the organization and corporate culture· We thoroughly use our personnel evaluation feedback system· We continually implement all sorts of programs to develop global personnel

Supporting diverse working styles

· We strengthen programs aimed at utilizing seniors· We offer workplaces where women can play an active role

Promoting work-life balance · We appropriately maintain working hours that depend on work performance

Ensuring health and safety· We implement measures to prevent workplace accidents· We maintain worksite safety· We maintain and improve employees’ health

Human Life, Environm

ent, Society

Global Environment

To reward our customers’ trust and contribute to the advancement of society, we engage in environmental activities in all EPC* business processes.

U s e o f e n v i r o n m e n t a l management systems

· We maintain environmental management systems in accordance with ISO 14001· We work to reduce our environmental impact in all EPC processes

Reducing the environmental impact of business activities

· We manage environmental risks· We work to reduce energy-derived CO2 emissions· We aim at efficient use of resources, and zero emissions· We contribute to biodiversity

Developing and providing eco-friendly construction · We develop and provide eco-friendly construction

Society and Local

Communities

We have offices in 8 countries around the world. As a good corporate citizen, we engage in meaningful communication with local communities, and support a wide range of programs to contribute to the sound and sustainable advancement of society.

Supporting programs that help the next generation in Japan and overseas

· We provide ongoing assistance in projects that restore and preserve domestic cultural properties· In emerging countries, we continually build social infrastructure and support programs for the next generation

Social contribution activities through engagement with local communities

· Our offices and local worksites continually engage in social contribution activities· We provide cooperation and support for volunteer activities carried out individually by employees and others

Compliance

Corporate Governance

In order to continue to be a corporate group trusted by society, we enhance the corporate governance system and strive to r a i s e o u r l e v e l o f m a n a g e m e n t transparency and effectiveness.

Enhancement of the r isk management system

· We ensure that the internal control system for corporate governance functions effectively· We continually provide risk compliance education, and make sure that we have strong awareness of legal compliance

Maintaining ethical standards · We continually provide education related to compliance and information security (e-learning, rank-based training, etc.)

The Company has established a CSR Governance Committee chaired by the head of the general affairs department. Th i s commit tee per forms c ross -organizational oversight of CSR-related staf f d iv is ion operat ions and the activities of related committees. This strengthens coordination among all CSR activities, and invigorates the CSR activities of the entire Toshiba Plant Systems & Services Corporation Group.

CSR Promotion Framework President

CSR Governance Committee

Toshiba Plant Systems & Services Corporation Overseas AffiliatesDomestic Subsidiaries

Central Health and Safety Committee,Environmental Management Officers Meeting, etc.

Corporate Planning Division, Administration & Human Resources Division, Finance & Accounting Division, Industrial Safety & Environment Control Division, etc.

CSR-Related CommitteesCSR-Related Staff Division

Secretariat

CSR Policies, Themes, and Specific Activities

Standards of Conduct

Aggressively implementing CSR management as a company that contributes to the building of a foundation that supports society and industry

In order to continue to be trusted by society, the Toshiba Plant Systems & Services Corporation Group promotes all business activities with the highest priority placed on life, safety and law compliance, and fulfills its social responsibilities so as to satisfy all stakeholders.

Toshiba Plant Systems & Services Corporation places top priority on life, safety and law compliance. At the same time, we will work to build bonds of trust with society, including our customers and shareholders.〈 〉Important CSR Initiatives

We thoroughly comply with laws and regulations, societal norms, ethics, internal rules and other directives on a global basis, and promote business activities amid fair and honest competition.

To reward our customers’ trust and contr ibute to the advancement of society, we engage in environmental activities in all EPC* business processes.

I n a d d i t i o n t o s o u n d a n d high-quality management, we emphasize good communication with all of our stakeholders.

Practice thorough compliance

and operate properly

Communication with stakeholders

Protect the environment which supports life,

and contribute to society

※EPC：(Engineering, Procurement, and Construction) A construction contract in which the contractor is responsible for the entire process flow including design, procurement, and construction. 9 10

The Company’s Priorities

Through our business activities, we reward the trust of our customers and contribute to the advancement of society. In addition, based on our respect for people, “Valuing People,” we devote maximum effort to ensure the health and safety of all people involved in our business activities and promote health and safety management programs. This includes our employees, as well as the people of our affiliates and partner companies.

We proactively implement health and safety management programs, and promote “safety activities” with a goal of zero workplace accidents. In order to enhance safety management function, we have established a health and safety management framework in accordance with our “Basic Health and Safety Policy.” We have also established an occupational health and safety management systems and strive to promote health and safety programs.

Health and Safety Initiatives

Basic Health and Safety Policy

Health and Safety GoalsHealth Goal: Zero health impairments(1) Promotion of mental healthcare(2) Prevention of health impairments

caused by overwork(3) Improvement in health concern

detection rate in regular health checks(4) Creation of comfortable workplace environments

Safety Goal: Zero workplace accidents(1) Firm establishment of basic work operations and actions(2) Continual improvement of occupational health

and safety management systems(3) Enhancement of health and safety education(4) Promotion of voluntary activities by affiliates

and partner companies

Basic work operations and actionsAll members of the Group will return to the starting point of safety, and aim for “zero

workplace accidents” by firmly establishing the Basic Work Operations and Actions.To this end, we will incorporate the “expansion of risk assessment

(preparation through clean-up)” into daily TBM/KY activities* and continually improve occupational health and safety management systems.

Mental healthcare promotionWe aim for managers and employees to

have “zero health impairments” by energizing workplace communication, promoting mental healthcare, and working to create comfortable and low-stress work environments

Example of Health and Safety Initiative (2) Safety Environment Competition

[Aim] In order to raise awareness of the health, safety, and the environment, and ensure proactive promotion of activities, the Group as a whole, including partner companies, holds a “Safety Environment Competition” each July.

[Details] 1. Reports on examples of safety and environmental management

2. Safety achievement award presentation 3. Environmental achievement award presentation

*TBM: Tool Box Meeting. A safety meeting held at worksites prior to performing work. It is called this because workers gather near the tool box and have a discussion led by the supervisor.

KY (abbreviation of the Japanese phrase kiken yochi ): Small group activity aimed at preventing accidents by having individual work groups grasp the current work conditions to predict the inherent potential risks, establish countermeasures and action goals prior to performing work.

Example of Health and Safety Initiative (1) Safety sensory education

[Aim] To remind employees of the importance of the basic actions and work operations for safety, this training provides a virtual experience of dangers under conditions approximating a real worksite environment, and allows employees to feel how scary an accident or disaster is.

[Number of Times Held] Since the first being held in June 2007, the event has already been held more than 100 times at worksites both in Japan and overseas.

[Example of Activities] To get a hands-on understanding of the effectiveness of full-body harness safety belt* used overseas, employees learn the difference in the effectiveness between correctly and incorrectly wearing the device by wearing one both correctly and then incorrectly (leg portion of belt left unfastened) while being actually suspended.

Pulled up without wearing the belt for the legs (before being pulled up)

Pulled up while correctly wearing the full-body harness safety belt (feeling a real weight)

▶Worn incorrectly ▶Worn correctly

While being pulled up, the person slips out of the safety belt and falls

IncorporationCompliance check

1. We have integrated our occupational health and safety management systems into our operations and construction work management frameworks, and all employees follow it.

2. We strive to create safe and comfortable workplace environments and raise our level of health and safety based on the cooperation of all people involved in our business activities.

3. In addition to increasing the essential safety of our facilities and the equipment we use, we aim for a thorough safety management framework in accordance with our health and safety plan which details the response to emergencies as well as reduces the potential risk of workplace accidents and harmful factors. With this, we ensure safe conditions and safe actions, and have set a target of zero accidents/disasters as our goal for occupational safety.

4. We eliminate factors that undermine health, proactively create bright and comfortable workplaces, and proactively implement programs that support health and provide health guidance etc., thereby promoting both physical and emotional health.

5. Promoting uniform health and safety activities across the entire Group, we inform all employees, affiliates and partner companies about Basic Health and Safety Policy as well as health- and safety-related laws and regulations, rules, and standards by holding education and drills, and other such activities to increase awareness.

Promotion of mental healthcare

Self-careConduct stress

checks

Line careImprove workplace

environment

Communication

Grasping health condition

Putting into practice

Thorough implementation

*Full body harness safety belt: Instead of only having a torso belt to prevent falls, a full-body harness safety belt includes belts for both shoulders, the back, and legs, and disperses shock throughout the body

TBM/KY activitiesAll workers reconfirm examples of

accidents, operations rules

Expansion of risk assessmentPreparation work through

Post-work clean up

Basic work operations and actions

Safety patrolsPromote implementation

and check status

Prevent similar accidents from occurringInclude in work instructions and manuals etc. and disseminate

11 12

▼

Communication with Stakeholders

Based on Commitment (our business philosophy) and Standards of Conduct, we implement effective measures with respect to quality management, information security and the protection of personal data, and strive to raise the level of customer satisfaction by continually improving these measures.

Together with Our Customers

We have built a quality management system with a total engineering framework spanning from plant planning and proposals to design, procurement, construction, testing, trial operations, maintenance and services, and offer services that match customers’ needs.

Going forward, we will carry out quality activities based on our “Quality Control Policy,” implement strict quality management, make continual improvements, and strive to improve quality.

Quality ManagementWe continually make improvements to quality

always from the perspective of our customers by using a stringent quality management system based on ISO 9001 requirements, and by carrying out PDCA (Plan-Do-Check-Act) cycles, the basic principle of ISO 9001.

Quality Management System (QMS) Overview and Management Framework

Toshiba Plant Systems & Services Corporation has obtained the PrivacyMark certification from JIPDEC. This signifies that the company is in compliance with all laws and regulations, as well as other standards related to the protection of personal data, in accordance with the Standards of Conduct.

We have established a Personal Data Protection Management System in order to thoroughly protect the personal data we handle. This system is implemented and used in our daily operations, and improvements are continually made to the system based on improvements and reviews made by the internal and external audits.

Protection of Personal Data

Acting in accordance with Toshiba Plant Systems & Services Corporation’s Standards of Conduct, and sticking to our Commitment, we make quality our highest priority, ensure product safety and reliability, secure a proper worksite environment, comply with legal regulations, and thereby contribute to society by providing products that satisfy our customers.

1. We engage in quality assurance from the customers' point of view.2. We comply with relevant laws and regulations and contracts,

and respect the rights of customers and third parties.3. We establish and maintain a quality management system

which aims to deliver products which satisfy customers, and continually improve their effectiveness.

4. We ensure quality through effecting the participation of the entire group and all employees.

5. We aim for essential improvement by investigating the root causes of process failures.

Quality Control Policy

Management Framework of Quality Management System

*CPL: Abbreviation combining CL (contractual liability) and PL (product liability)*CPL Committee: Committee formed to handle quality-related incidents when a

CPL incident occurs

President

Management Review MeetingCPL Committee*

Quality Oversight Division

Quality management groups

Divisions

Groups

Management System Framework of Personal Data Protection

Conceptual Diagram of Quality Management System

Plan

Do

Act

Check

Continual improvement of Quality Management System

Quality Control Policy

Formulate plans to achieve quality targets

Customer

· Worksite environm

ent· Infrastructure· Hum

an resources

(Operation management of resources)

Inform entire company of important quality-related itemsQuality-related Meeting

(Clarify requirements)· Product monitoring and measurement

· Management of non-compliant products

· Corrective measures (products)

Analyze data

Management review

Construction → Delivery

Design-Development-Purchasing-Manufacturing

Contracts (contract specifications)

Monitoring and measurement (customer satisfaction, data from each process)Internal audit, ISO 9001 certification renewal (external audit)

Evaluation and implementation of preventive and corrective measures

Conceptual Diagram of Personal Data Protection Management System

Plan

Do

Act

Check

Privacy Policy

Risk assessment (create registry)

Devise countermeasures

Identify personal data (create registry)

Check management vulnerability Measures to respond to emergencies (establish system)

Implement countermeasures· Periodic inspections of

implementation status· Recognition of residual risk

Disclosure/penalty· Compliance with disclosure obligations

· Fair handling

Handle complaints and consultations· Clarify response contact· Sincere response

Renew PrivacyMark certification (external audit)

Management review

Provide refresher training

Assessment and improvements to matters that need correcting

Conduct internal audit

· Record· Documentation· Establish framework· Legal compliance

(Basic Elements)

Continual improvem

ent of Personal Data

Protection Managem

ent System

In accordance with the Standards of Conduct, we appropriately manage all information handled while carrying out operations (excluding information disclosed widely outside the company), and strive to protect such information by preventing inappropriate disclosure, leakage, or usage.

We have established “Information Security Guidelines” to effectively and appropriately manage the information we hold.

The key details of the Guidelines are as follows.① Establish an organizational framework to implement PDCA (Plan-Do-

Check-Act) cycles ② Implement various security measures to raise the efficiency and

effectiveness of information management ③ Appropriately conclude written pledges, confidentiality agreements, etc.

necessary for legal compliance concerning the use of information

Information Security

Individual requirements for personal dataPersonal data protection rules for collection, consent, disclosure, etc.

Individual requirements for technological informationTechnological information management rules, etc.

Handlers of informationTypes of entities to whom information is disclosed

Management of electronic information processing systems and networks

Information systems

Organizational measures

Shared requirements related to information

Individually-managed parts

Technological information (trade secrets)

Personal data

Individually-managed parts

Information handling and security (physical)

Information handling and security (technological)

Human/legal countermeasures

Employees

Temporary workersBusiness counterpartiesBetween companies

President

(Convenes when personal data leakage or other incident occurs)

Personal data protection division management officer

Personal data protection division manager

Personal data protection management implementation officer

Handler of personal data

Personal data protection audit officer Chief Risk-Compliance Management Officer (CRO) *1

Information Security Committee

Personal data protection management promotion officer

Personal data protection committee member

Consultation contact staff

Personal Data Protection Committee

Chief Privacy Officer (CPO)*2

Company-wide consultation contact

Management Framework of Information Security

Company-wide information security implementation manager

Information Security CommitteeDivisions in charge of information security◦Prevent insider trading◦Manage technological information◦Handle inventions and designs◦Protect personal data◦Handle electronic information◦Business contracts Practices Committee

Implementation managers

Management executives

Secretariat

Heads of the sections Affiliates

Conceptual Diagram of Information Security

*1 CRO: Chief Risk-Compliance Management Officer*2 CPO: Chief Privacy Officer

PrivacyMarkWe protect personal data in compliance

with JIS, and have obtained the PrivacyMark awarded by JIPDEC to business entities which properly handle personal data.

ISO 9001 certification markT h e C o m p a n y h a s

o b t a i n e d I S O 9 0 0 1 certification from Lloyd’s Register Quality Assurance Limited, the international s t a n d a r d f o r q u a l i t y management systems.

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Communication with Stakeholders▼

Communication with Stakeholders

We strive to build strong relationships of trust with shareholders, investors, customers and other stakeholders, and to increase corporate value.

Together with Shareholders and Investors

Information disclosure is an important management priority, and we recognize it is essential to appropriately disclose information in order to obtain our stakeholders’ understanding.

To put this in practice, we quickly carry out

timely disclosure in accordance with laws and regulations etc., in addition to voluntarily disclosing information (including non-financial information) determined to be important for shareholders and other stakeholders.

Policy on Disclosure of IR Information

We recognize that proactively engaging in dialogue with our shareholders to listen to their opinions and requests, and reflecting such feedback into management, are important responsibilities in order to achieve sustainable growth and to increase corporate value over the medium to long term.

To this end, we have established an IR framework centered on the director responsible for IR. We generally hold financial results meetings for shareholders and investors twice a year, as well as proactively hold IR meetings and other events based on requests from shareholders and institutional investors, and strive to disclose information in a timely and appropriate manner to a reasonable extent, while keeping in mind principles such as shareholder equality and insider information handling etc.

As necessary, the director responsible for IR provides feedback about the outline of such information and shares information with other directors and relevant departments through meetings, reports, and other means.

Dialogue with Shareholders and Investors

The Company works to return profits with the target of a consolidated dividend payout ratio of approximately 30%, while considering the optimal balance between increasing corporate value through medium- to long-term growth and the return of profits.

Also, the Company effectively uses internal reserves to bolster its financial position, to prepare for future business development, and to flexibly respond to changes in the business environment as well as other developments.

Taking changes in the business environment, the company’s financial condition, and other factors into consideration, the Company considers carrying out share buybacks as a way of raising capital efficiency and returning profits to shareholders.

Basic Policy on the Profit Allocation

We hold a firm belief that materials procured should be of superior quality and safety to meet each of our clients' needs. Our unique Standard of Conduct and Toshiba Group Procurement Policy govern and ensure that our sourcing, contracting and purchasing activities are ethical, efficient and accountable while compliance

to laws and regulations is met and all efforts are made to preserve the environment. We seek a wide range of partnerships with like-minded companies who share with us the same corporate values of fairness, openness, and building long trusting relationships, as we believe that together we can prosper.

Procurement Policy

We provide fair business opportunities to suppliers, and prioritize doing business with companies that comply with relevant laws, take the environment into consideration, and have excellent technology and quality.

Together with Suppliers

1. Compliance with Laws, Regulations, Social Customs, Etc. (1) Ensuring compliance with the prevailing laws and regulations, including anti-trust laws, commercial

codes, subcontractor regulations, construction business act, personal privacy laws, ordinance for eliminating organized crime groups, etc.

(2) Prohibition of bribery (any gift, payment, consideration, financial or non-financial advantage or benefit of any kind which constitutes a corrupt and illegal practice)

2. Considerations to Human Rights, Labor, Health and Safety3. Environmental Considerations (1) Suppliers are encouraged to adopt ISO 14001-based environmental management systems and to

promote third-party certification. (2) Suppliers are encouraged to reduce or eliminate use of potentially hazardous substances and to utilize

Green Procurement. (3) Suppliers are encouraged to promote environmental protection activities.4. Maintain Sound Business Operations5. Securing Excellent Product Quality6. Offering Goods and/or Services at Appropriate Prices7. Firm Delivery Commitment and Establishment8. Enhancement of Technological Capabilities9. Continuing Supply in Times of Unexpected Circumstances

Var ious t ra in ing p rograms re la ted to compliance during procurement are provided to officers to ensure fair trading practices.

In order to ensure compliance and fair transactions, we established a whistleblower system for our suppliers called Clean Partner

Line, in January 2007.If any violation of the law should arise during

business transactions, our suppliers notify us.We establish more transparent relationships of

mutual trust with the suppliers, and develop sound partnerships with the suppliers.

Establishment of Whistleblower System (Clean Partner Line)

Website IR information

Shareholder Newsletters

Dividend Amount Trends (Yen/share)

FY2012

15.00

7.50

7.50

7.50 7.50

7.50 25.0019.00

12.50 19.00(Plan)

15.00

7.50

37.5038.00(Plan)

FY2013 FY2014 FY2015 FY2016 (Plan)

0

10

20

30

40

50Interim dividend Fiscal year-end dividend

※

Supplier Expectations

Breakdown of FY2015 interim dividend: Ordinary dividend = ¥12.50, Special dividend = ¥12.50

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Communication with Stakeholders

“Feedback meetings” that build relationships of trust between superiors and employees that report to them.The Company conducts personnel evaluations with the aim of fairly and impartially

treating employees based on current market valuations in accordance with assessment factors. As a part of feedback through interviews between superiors and employees reporting to them, assessments of performance, abilities, and attitude are explained. In addition to increasing transparency and understanding, this leads to employees having motivation to use in their future work and to personnel training.

Training systemWe develop employees by effectively

c o m b i n i n g O J T , O F F - J T , a n d s e l f -development systematically.◦OJT

The aim of OJT is to systematically increase one’s abilities by acquiring the necessary knowledge, technical skills and business skills through work.◦OFF-JT

Systematic and specialized training away from the workplace, including rank-based training, global training, specialized skill training, and training to acquire public certification, aimed at giving employees knowledge, technical skills and business skills commonly required to carry out business.◦Self-development

We offer opportunities for personnel to improve their qualifications and abilities. Such opportunities include voluntary long-distance education and “family training” which promotes mutual self-improvement among workplace units.

We help employees balance their work and personal lives in order to achieve profitable and sustainable growth for the company and to help employees live fulfilling lives.

Helping employees balance work, childcare and family careTo help employees raise their children, we have put in place systems that

go beyond what is legally required. In addition, we have prepared a leaflet containing information on the company’s various benefits and programs as well as public benefits related to giving birth and raising children. The contents are posted on the Company intranet for employees to view anytime.

In FY2005, we established an action plan based on the “Act on

Advancement of Measures to Support Raising Next-Generation Children,” and acquired the next-generation authorization mark “Kurumin”* in April 2007. We are currently, advancing the initiatives of the 4th Period Action Plan.

In addition, the company supports employees to balance work and family care.

*Kurumin: A symbol indicating that a company has been recognized by the Minister of Health, Labour and Welfare as a company that supports childcare.

We have put in place a “Career Design System” which aims to train and utilize personnel from a medium- to long-term perspective. Superiors and the employees that report to them cultivate communication through interviews and the company’s operating performance is aided by superiors helping employees advance their careers while checking on the direction of their employees’ development and utilization.

We view diverse personnel and working styles positively, and work on a global basis to create work environments that lead to imagination and competitiveness for our businesses. Our personnel are our greatest management resource, and are the source of our competitiveness as a company. We believe that getting the most out of the abilities and unique strengths of each of our valuable employees and continually energizing them will lead to continual growth for the company.

Together with Employees

Personnel training and utilization

Re-hiring SystemTo support our business plans, it is essential to pass skills down from one generation to the next and to allow experienced employees to contribute. We have established the Toshiba

Plant Systems & Services Group Re-hiring System, which provides a framework for our employees to continue to work enthusiastically on the front lines of business after reaching the mandatory retirement age of 60, and incorporates incentive structures for employees. Employees wishing to do so may renew their employment up until the age of 65.

Promoting Women in the WorkplaceThe company’s ratio of female employees is 6.2% (as of March 31, 2016). Although this ratio is low,

female employees are working in a wide range of fields, including technical, sales, and administrative positions. In addition, in order to increase the number of female workers in leadership roles, we have been enhancing training programs, increasing the retention rate (the average number of continuous years of employment by female employees is 17.9 years as of March 31, 2016) through our initiatives to support childcare and family care, and the Company is hiring more women.

Supporting diverse working styles

Promoting Work-Life Balance

Preventing lifestyle-related diseases (health guidance, specified health guidance)Based on the results of regular health checks, we provide health guidance and specified health guidance for employees aged 40 and

above. Employees keep track of the values that have been identified as problematic, and set improvement targets for lifestyle habits and write up detailed action plans. A nurse provides ongoing support to help employees achieve their targets in 6 months.

Creating healthy and safe workplaces

Measures to support employees to balance work with childcare and family careChildcare leave Until the 30th of April following the child’s first birthday (or until the child is 18 months old if the child is under 18 months old on April 30)

Shortened working hours to provide childcare Covers children through elementary school graduationFamily care leave (for the sick and/or injured) 5 days a year per eligible person

Paternity leave 5 days (within 6 weeks of spouse giving birth)Raising next-generation support leave 10 continuous days (following birth by spouse, until child turns one)Family care leave (for the elderly and/or disabled) One year per applicable family memberShortened working hours to provide family

care (for the elderly and/or disabled) Under 3 years per applicable family memberFamily care leave (for the elderly and/or disabled) 5 days a year per applicable family member

Ratio of women returning to work after giving birth

Since FY2013100％

Main leave programsFree entry leave Employees can register and take up to 12 days of annual leave in advance

Accumulated leave Employees can accumulate and take up to a maximum of 20 days of annual leave, that would otherwise expire, for the purpose of self-development, volunteering, family care, or childcare

Refresh vacation Can take 5 days of vacation after 10 consecutive years of service, thereafter 5 days after each 5 years (10 days after reaching 25 years of consecutive service)

Retirement trip vacation Can take 5-day travel vacation upon reaching mandatory retirement at age 60

Mental HealthcareOur support for employees includes conducting legally-required stress checks

once a year to encourage awareness of stress among employees. In addition, we offer self-care training as a part of rank-based training, and provide opportunities for employees to learn ways to handle stress.

In addition, we conduct line care training through managerial training and other initiatives. This helps managers become aware of employee’s needs and develops their listening skills. We also foster lively workplace communication among our people by encouraging them to call out and greet one another.

Initiatives through the Hatsuratsu Work-Life LevelThe outcome of initiatives to reduce the total number of hours

worked is used as an indicator called the “Hatsuratsu Work Life Level.” Divisions that have done well receive recognition, and are given money to use for recreational activities that involve the business unit.

Self-care

Line care

First Level Prevention and health promotion

Second LevelEarly detection, quick response

Third LevelConvalescence support

Training for new hires and again after first year

Year 5 training

Rank-based training

Stress checks

Employee satisfaction awareness survey

Managerial training

Comprehensive workplace inspections by managers

Interviews with clinical psychologists

◦Personnel training and utilization ◦Supporting diverse working styles ◦Promoting work-life balance ◦Creating healthy and safe workplaces

Four Areas of Emphasis

Men Women

10

15

20

25

2012 2013 2014 2015 2016

20.6 20.7 21.0 21.5

16.2 16.5 17.0 17.4 17.9

21.3

Personnel Utilization and Training System

Career Design

Personnel training

Career Plan Employees desiring transfer etc.

Feedback

Personnel Treatment

Interview

OJT

Self-development

Rank-based training

Global Training

Health, Safety and Environmental Training

Innovation Training

Specialized skill training

Training to acquire public certification

OFF-JT

Training system

………

Average number of continuous years of employment for men and women (Units: Years)

Initiatives aimed at shortening total hours worked

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Human Life, Environment, Society

Using the previous fiscal year’s values as a base, we set target values taking our business plans into account, and work to reduce environmental impact in all EPC processes.

Environmental Activity Targets

The material flow below shows the extent to which business activities impact the environment.

Environmental Activities and Material Flow

(Note) The values above are from the previous fiscal year. Criteria used to calculate energy data Electricity: Power consumption of offices and factories. Gasoline and light oil: Fuel for vehicles used by offices and worksites. Criteria used to calculate copy paper and water resources Copy paper: Amount of copy paper purchased by offices and factories. Water resources: Amount of water resources used by factories. Conversion coefficient for CO2 Electricity: 5.10 t-CO2 /10,000 kWh Gasoline: 2.32 t-CO2/KL Light oil: 2.62 t-CO2/KL Conversion coefficient for trees used for copy paper 13,000 sheets (Size A4)/tree

Business activities

OUTPUT (Environmental impact)

Environmental risks Zero environmental non-conformance

Materials

Promotion of reducing environmental impacts

Prevention of environmental non-conformance

Mitigation of climate change

efficient use of resources (Waste associated with construction)

Provision of facilities and systems to customers

INPUT (Amount used)

Energy Electricity : 2.2 million kWh Gasoline : 287 KL Light oil : 107 KL

Energy-derived CO2 emissions Amount of Emissions: 2,070 t-CO2

Amount of generated waste Total amount of discharged waste : 1,181 t Final disposal volume: 3 t

Copy paper Number of trees cut down: 2,549 treesWater resources Amount of discharged water: 2,003 ㎥

Copy paper: 33,140,000 sheetsThe volume of water resources received　Tap water : 1,689 ㎥　Groundwater : 314 ㎥

Procurement of materials and services

Conservation of biodiversity

Activities to reduce environmental impact in all EPC processes

• Development and proposals of systems and products to reduce environmental impact

E（ Engineering ）

• Promotion of green procurement

P（ Procurement ）

• Eco-friendly construction• 3R*1 activities

C（ Construction Commissioning ）

Activity Objective Activity marker Activity Target

Environmental risk management Prevention of environmental non-conformance Zero environmental non-conformance

Mitigation of climate change Reduction of energy-derived CO2 emissions Lower per unit production*2 than previous fiscal year’s values

Efficient use of resourcesReduction of amount of generated waste Lower per unit production than previous fiscal year’s values

Achievement of zero emissions (final disposal volume) Percentage of final disposal less than 0.5%

Conservation of biodiversityReduction in amount of copy paper purchased 5% reduction in purchase plan

Reduction in the volume of received water resources Lower per unit production than previous fiscal year’s values

We recognize that working to solve environmental issues in all of our business activities is one of the main pillars of the company’s management. All of our employees strive to reduce the environmental impact of our business activities.

Environmental Management

In line with the idea that “We of the Toshiba Group recognize that the basic responsibility of people living today is to hand over the precious global environment to the next generation in a sound condition,” which is part of the Toshiba Group’s Basic Policy for the Environment, we engage in three “Greening” activities: the greening of products, greening by technology, and greening of process, based on the Green Management activities. These activities are aimed at realizing the goal of “practicing environmental management that promotes harmony with the Earth, contributing to the creation of affluent lifestyles for society,” as stipulated in the Toshiba Group “Environmental Vision 2050.”

Creating products that reduce environmental impact

Greening of Products

Creating systems that reduce environmental impact

Greening by Technology

Initiatives to reduce environmental impact

Greening of Process

Business activities that aim to reduce environmental impactGreen Management

Philosophy on Environmental Management Initiatives

The Group has established an “Environmental Management Concept” and a “Basic Policy for the Environment,” and we carry out environmental activities in line with both.

Our stance on Environmental Management

Environmental Management ConceptWe work to reduce the environmental impact of our EPC business activities.

Basic Policy for the Environment Based on the Toshiba Group Environmental Vision, we incorporate the following environmental management activities

in all EPC processes in order to reward our customers’ trust and contribute to the advancement of society.

1. Viewing the protection of the global environment as one of management’s primary responsibilities, we promote environmental activities, including the protection of biodiversity.

2. We strive to prevent global warming and to effectively use resources in all of our business activities, from design to maintenance services.

3. We develop products and technologies, as well as improve our services, so as to reduce environmental impact.4. We comply with all laws and regulations, guidelines we have endorsed, and our own environmental standards.5. We work with local communities, and all of our employees, including members of affiliates, engage in

environmental activities.

*1 3R: Reduce, Reuse, and Recycle*2 Per unit production: Company reference value computed taking net sales into consideration

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Human Life, Environm

ent, Society

▼

Human Life, Environment, Society

We proactively engage in social contribution activities. We contribute to the advancement of society by supporting various activities as a company that handles social infrastructure, and as a good corporate citizen we value communication with local communities.

Together With Society and Local Communities

Social Contribution Activities

Basic Policy for Social Contribution Activities

As a company that handles social infrastructure, we contribute to sound and continued development in the main countries and territories in which we operate, based on the Toshiba Plant Systems & Services Corporation’s Standards of Conduct.

In Japan, we support activities related to restoring and preserving cultural assets in order to pass ancient Japanese culture along to future generations. Overseas, we provide ongoing support for activities related to improve social infrastructure and developing future generations (construction of schools, etc.).

Also, as a good corporate citizen, we value communication with local communities and promote social contribution activities.

Activity Concepts

1. Assistance for efforts to pass down Japanese culture and techniques In order to pass ancient Japanese culture and Japan’s wonderful traditions down

to future generations, we support efforts to restore and preserve cultural properties, and help pass down restoration techniques and skills.

2. Assistance for activities to improve social infrastructure In addition to improving social infrastructure through our business activities, we

contribute to development of local communities by supporting programs to upgrade infrastructure in inadequate condition.

3. Assistance for activities to develop future generation We support the construction of schools and other educational facilities that

provide learning opportunities to children that will build our future society.

4. Promotion of activities rooted in local communities We value communication with people in local communities in which we operate,

and continually engage in programs that contribute to local communities.

Assistance in restoration and preservation of domestic cultural propertiesAs a part of our efforts to support programs that restore and preserve precious Japanese

cultural properties in order to pass them along to future generations, we have been assisting with the “project to restore and preserve cultural properties in Imperial Convents”*1 since FY2010. This project is to preserve the paintings, sculptures, craft works, textiles, and historic structures owned by existing Imperial Convents*2, in order to hand them down to posterity.

Just as the work of the Company requires systematic inspection and repair of equipment involving social infrastructures, these restoration and conservation projects require persistent effort over a long time. Despite its being a totally different field, the restoration work shares many aspects with our business. Thus the Company continues to support this project.

*1 Project to restore and preserve cultural properties in Imperial Convents: This project is sponsored by the Medieval Japanese Studies Institute, and we provide support through the Foundation for Cultural Heritage and Art Research.

*2 Imperial Convents are those where the Buddhist nuns previously came from Imperial, court, and samurai lineage. A dozen Imperial Buddhist convents are still active in Kyoto and Nara.

Assistance for Efforts to Pass Down Japanese Culture and TechniquesStatus of conservation project of statues at Shinnyoji

Shinnyoji was built in 1342. It is the temple where Hōkyōji Abbess are buried. Shinnyoji is one of three branch temples*3 associated with Shōkokuji, the others being Rokuonji (Kinkakuji) and Jishōji (Ginkakuji). It is a venerable temple and also ranked as one of the ten second-tier (jissetsu) Rinzai Zen temples in Kyoto. The statues of nuns at Hōkyōji Imperial Convent housed in Shinnyoji are extremely rare portrait sculptures. In order to pass these valuable cultural properties on to future generations, following the statue of Hongakuin no Miya, currently work is being done to restore the statue of Kotokuin no Miya, centered on the overall statue, its coloring, and exfoliation.

*3 Branch temple (sangai tacchu) : A small temple was built near the graveyard of the high priest of the large temples in order to protect it, and called a mortuary temple (tacchu) . There are three mortuary temples outside the grounds (sangai) of Shōkokuji.

Key projects supported in the past by the project to restore and preserve cultural properties in Imperial Convents

Year Assistance Project Location2010 The restoration of the Nanakusa Emaki handscroll

belonging to Hokkeji Imperial ConventNara

Prefecture2011 The restoration of a nikai-zushidana, a two-tiered

decorated cabinet, belonging to Sanji Chion-ji Imperial Convent

Kyoto Prefecture

2012 The repair and preservation of the outer garments of a layered court costume (the uwagi and karaginu of a jūnihitoe ) owned by Reikanji

Kyoto Prefecture

2013 The conservation of a statue of Hongakuin no Miya at Shinnyoji

Kyoto Prefecture

2014 The conservation work on a set of Genji screens belonging to Chūgūji Imperial Convent

Nara Prefecture

2015 The ongoing conservation of a statue of Kotokuin no Miya at Shinnyoji

Kyoto Prefecture

(Before restoration)

The statue of Kotokuin no Miya (Under restoration) The statue of Hongakuin no Miya (After restoration)

Junihitoe Karaginu

The right screen of a set of Genji screens

Junihitoe Uwagi

The left screen of a set of Genji screens

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Human Life, Environm

ent, Society

Human Life, Environment, Society

Our business offices, branch offices and worksites engage in activities to contribute to local communities, and also provide assistance to volunteer activities that officers and employees engage in. Going forward, as a good corporate citizen we will continue to actively engage in social contribution activities.

Volunteer Clean-Up EventsWe participate in events to pick up trash, cigarette butts, and other items discarded near business offices, branch offices, and worksites.

Commemorative Backpack Gift We provide assistance for basic education by collecting used backpacks and sending them to children overseas.

Collection of PET Bottle CapsWe provide vaccines to children around the world by donating collected PET bottle caps.

Safety Sensory EducationAs an initiative to create harmony with local companies, we provide safety sensory education for new employees of neighboring companies.

Thinning of bamboo groves near worksitesWe participate in programs to thin bamboo groves in the vicinity of our worksites and offices.

Employees volunteer to provide assistance at the Hiroshima Peace Memorial Ceremony Employees used wheelchairs to help physically-handicapped people at the Hiroshima Peace Memorial Ceremony.

Together With Society and Local Communities

Promotion of Activities Rooted in Local Communities

Support for Social Infrastructure Assistance for activities to develop future generationsSupporting Infrastructure Projects in Emerging Countries

As a company that handles social infrastructure, since FY2014 we have helped upgrade inadequate infrastructure in emerging countries where we have deep business ties, and offer assistance*1 to activities for the development of local communities.

*1 Assistance: Funding through the International NGO World Vision Japan

Solar panels

Solar charging station

Solar Lantern user

Assistance DescriptionThe FY2015 project to build the Trung Dinh Satellite Preschool in Socialist

Republic of Vietnam was completed. (March 2016)Location: Trung Dinh village, Huoi Leng commune, Muong Cha district,

Dien Bien province, Socialist Republic of VietnamProject Period: October 2015 to March 2016Description: 2 classroomsSize (Number of Students): 29 children of

age 2-5

Key projects supported in the pastYear Assistance Project Country2010 Construction of Shadashivbari Primary School Bangladesh2011 Construction of Beribide Primary School Bangladesh2012 Construction of Gezani Primary School Tanzania2013 Construction of Nonchan Kindergarten Laos2014 Construction of Mwakikoya Primary School Tanzania2015 Construction of Trung Dinh Satellite Preschool Vietnam

Key projects supported in the pastYear Assistance Project Description Country

2014 Installation of water system

We built a water system, including a disinfectant tank, water storage tank, and water distribution pipes, to provide safe water to local residents Philippines

2015 Installation of reverse osmosis water filter system

We built a water system, including an RO System (Reverse Osmosis System) to a well in the area designated for support, in order to supply safe water to local residents India

2016 Bridge construction

We built a safe and durable bridge to replace the bamboo bridge that junior high and high school students in the area designated for support were using to go back and forth from school as well as for transporting agricultural products. Philippines

Supporting Activities of the Solar Lantern project

Delivering electric “Light” to people living without electricityOne estimate says that 1.2 billion people around the world have no access to

electricity. As a company that handles social infrastructure, the Company has been stretching out a helping hand since FY2008 to the “Solar Lantern project”*2 expanded in India.

As the first Japanese company to participate in this project, we have donated a solar panel (one panel) and 50 chargeable LED lamps to people living in 44 villages without electricity. Going forward, we will continue to deliver electric

“Light.”

*2 Solar Lantern project: We provide funding to The Energy and Resources Institute (TERI) of India through the NPO Gaia Initiative.

Support for the construction of schools and other facilities in emerging countriesSince FY2010, the Company has been offering assistance to construct primary

schools, kindergarten and other educational facilities in order to provide children in emerging countries with an opportunity for learning.

*Assistance: Funding through the International NGO World Vision Japan.

Trung Dinh Satellite Preschool in Vietnam

Nonchan Kindergarten in Laos

Gezani Primary School in Tanzania

Water system in the PhilippinesWater system in India RO System for Indian water system

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Human Life, Environm

ent, Society

Compliance▼

As a company that handles social infrastructure systems, in order to keep the trust of stakeholders such as customers and shareholders, we enhance our corporate governance system and strive to increase management transparency and effectiveness.

Starting with the Toshiba Plant Systems & Services Corporation’s Standards of Conduct, which is the Company’s original code of conduct, we have established a compliance system through the establishment of various rules. The basic objective of our corporate governance is to ensure management soundness and

transparency, to increase management efficiency, and to maximize corporate value. We have striven to further strengthen and enhance our corporate governance,

and have positioned the building of good relationships of trust with stakeholders such as customers and shareholders as an important management policy.

Corporate Governance Policy

Corporate Governance System

Corporate Governance

The Company is a company with Board of Statutory Auditors. The Company has 13 Directors (including two Outside Directors) and four Statutory Auditors (including two Outside Statutory Auditors). Through their efforts, the Company is working to strengthen and enhance its corporate governance system, and is aiming to boost management efficiency and ensure transparency.

1. Board of DirectorsThe Board of Directors generally holds meetings once a month in order to

ensure that Directors are effectively executing their duties.As the highest management decision-making body, the Board of Directors

discusses and makes decisions on matters stipulated in laws and regulations and the Articles of Incorporation, as well as other important management matters. In addition, the Board of Directors receives reports in a timely and appropriate

manner from each Director regarding the status of operations, and effectively and efficiently monitors and supervises the suitability and rationality of operations.

Moreover, the Executive Officer System has been introduced to quickly respond to rapid changes in the business environment as well as competition with other companies by separating the business execution function from the management decision-making and supervising functions.

2. Management MeetingThe Management Meeting is generally held once a week in order to ensure

quick decision-making and efficient operations. At the Management Meeting, management policies and important business

execution related to management strategies, etc., are discussed and decisions are made.

Corporate Governance Structure

General Meeting of Shareholders

Accounting Auditor

Board of Statutory Auditors

Board of Directors

Representative Director

Business Divisions, Branch Offices, Offices, Administration Groups

Group Companies

Executive Officers

Management Meeting

Nomination and Compensation Committee

Auditing Division

Corporate attorneys, etc.Cooperation

Appointment / Dismissal Audit

AuditReport Report

Appointment / Dismissal / Supervision

Appointment / Dismissal / Supervision

AuditReport

Report

Instruction

Instruction / Supervision

Instruction / Supervision

ReportSubmit report

Advice Appointment / Dismissal

Advice / Guidance

Internal Audit

Appointment / Dismissal

Report

25

We thoroughly comply with all laws and regulations, social norms, ethics, and internal rules, and strive to improve management efficiency and ensure management transparency.

In addition, we ensure strong compliance with our Commitment, our Management Vision, and the “Toshiba Plant Systems & Services Corporation’s Standards of Conduct,” which is the Company’s original code of conduct. As a corporate citizen of the Earth that values the environment, human rights, and harmony with local communities, we aim to realize sound and high-quality management.

Furthermore, each year we determine priority measures in our risk and compliance management measures while taking into consideration current changes in the business environment. By pursuing these measures that are common to the whole company, we strive to enhance compliance.

As part of our proactive effort to prevent compliance violations and to limit risk, we have established a “Risk Hotline” as well as a “Board of Statutory Auditors Hotline.” These measures allow the Company to directly obtain information on risk internally.

Furthermore, in either system, we make sure that people who provide information on risks are not subject to unfair treatment on the grounds that they provided such information.

3. Nomination and Compensation CommitteeThe Nomination and Compensation Committee, comprised of two Outside

Directors and four Directors appointed by the resolution of the Board of Directors, has been established as a voluntary advisory body to the Board of Directors. This Committee ensures a framework whereby Outside Directors are able to be appropriately involved in, and provide advice with respect to matters such as the nomination of officers, as well as Directors’ compensation.

4. Board of Statutory AuditorsIn accordance with the “Board of Statutory Auditors’ Rules,” the Board of

Statutory Auditors generally holds meetings once a month. At these meetings, the Statutory Auditors exchange opinions and share information with one another. In addition, reports about auditing matters, etc. are received from each Statutory Auditor, and the matters are deliberated and decided upon.

As an independent organization, in accordance with the auditing standards for Statutory Auditors, audit policy, annual audit plan, etc. decided by the Board of Statutory Auditors, each Statutory Auditor strives to deepen his/her understanding of business and proactively collect information, and through the investigation of management conditions and financial conditions, fairly and effectively audit the execution of business by Directors. In addition, the Statutory Auditors work closely with the Auditing Division and other divisions, request advice from attorneys and other outside experts as necessary, and otherwise strive to bolster the function of the Board of Statutory Auditors.

In addition, we have established a framework so Statutory Auditors accurately and in a timely manner understand the important decision-making process and the status of business execution, and are able to offer advice and express their opinions as necessary. This includes providing Statutory Auditors with the opportunity to attend Board of Directors meetings, Management Meetings, and other important meetings, in addition to regularly providing opportunities for Statutory Auditors to meet and discuss matters with the President and Chief Executive Officer (Representative Director).

5. Auditing DivisionThe Auditing Division was established as an organization responsible for the

internal audit function. Based on the plan for the fiscal year, the Auditing Division audits the business activities, accounting and systems of the Company’s various divisions and of group companies.

The Auditing Division studies and evaluates the effectiveness of compliance, risk management and governance processes of each division, and the status of management activities impartially and from an independent position, from the standpoint of legality, rationality, and efficiency. The Auditing Division possesses the audit function to provide opinions, advice, and recommendations aimed at making improvements, and works closely with the Statutory Auditors and others with respect to the overall audit process and shares information related to audits.

6. Accounting AuditorPricewaterhouseCoopers Aarata LLC, the Accounting Auditor, performs

statutory accounting audits and works closely with the Board of Statutory Auditors to ensure the legality and appropriateness of accounting practices.

Policy and Structure of Risk Management and Compliance

Whistleblower System

Whistleblower System

Risk HotlineWhistleblowing

Whistleblowing Contact *Independent from executive side

Response Investigate/Check

Investigate/Check

Coordination

Coordination

Attorney’s Office

Whistleblowing contact

Whistleblowing

Response

Whistleblowing

Response

Board of Statutory Auditors Hotline

Whistleblowing Contact

Board of Statutory Auditors

Employees

Divisions Concerned

Division Responsible for Risk Management and Compliance Matters

26

Compliance

TOSHIBA PLANT SYSTEMS & SERVICES CORPORATIONTsurumi Toshiba Building, 36-5, Tsurumichuo 4-chome, Tsurumi-ku, Yokohama City, Kanagawa, 230-8691, JapanTEL: +81-45-500-7050 FAX: +81-45-500-7155

C S R R e p o r t 2 0 1 6

http://www.toshiba-tpsc.co.jp/