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CSR Report2017

TOSHIBA PLANT SYSTEMS & SERVICES CORPORATION CSR REPORT 2017

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

　　　

1 Commitment,CompanyData,HighlightsofConsolidatedFinancialResults

3 TopMessage

5 ToshibaPlantSystems&ServicesGroup’sBusinessDomains

7 Feature:Medium-TermManagementPlan

9 CSRManagement

11 FY2016CSRActivitiesand FY2017IssuesandGoals

13 ■OrganizationalGovernance

17 ■HumanRights

18 ■LaborPractices

23 ■Environment

26 ■FairOperatingPractices

27 ■ConsumerIssues

29 ■CommunityInvolvementandDevelopment

32 Third-PartyOpinion

Contents

Net sales (Millions of yen)

2015.3 2016.3 2017.3

218,652 219,353 226,867

2015.3 2016.3 2017.3

Ordinary income (Millions of yen)

17,687 18,720 19,093

HighlightsofConsolidatedFinancialResults

CompanyData(As of July 1, 2017)

Profit attributable to owners of parent (Millions of yen)

2015.3 2016.3 2017.3

10,04411,242

12,796

2015.3 2016.3 2017.3

Total assets (Millions of yen)

229,436238,254 244,407

2015.3 2016.3 2017.3

Net assets (Millions of yen)

116,059121,281133,288

Equity ratio (%)

50.4 50.8 54.4

2015.3 2016.3 2017.3

CompanyName Toshiba Plant Systems & Services Corporation

AddressofHeadOffice Tsurumi Toshiba Building36-5, Tsurumichuo 4-chome, Tsurumi-ku, Yokohama City, Kanagawa, Japan

Representative Masataka Hayashi,President and Chief Executive Officer, Representative Director

Founded October, 1923

Established October, 1938

Paid-inCapital 11,876,021,006 yen

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

Numberof Employees 4,430 (Consolidated basis), 3,196 (Non-Consolidated basis)

EditingPolicy

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 philosophy 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.

ReportingperiodThis report generally covers the period from April 2016 through March 2017, but also includes information on activities prior to and after this period.OrganizationscoveredinthisreportThis report covers certain group companies with a focus on Toshiba Plant Systems & Services Corporation.ExpectedtimingofissuanceofnextreportJuly 2018ReferenceguidelinesThe international standard for social responsibility

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

AtToshiba Plant Systems& ServicesCorporation, eachemployee iscommittedtoservingsocietythroughtheprovisionofservices,productsandsystemsthatfulfillcustomerneedsinthefieldofsocialinfrastructure.

Commitment

ToshibaPlantSystems&ServicesCorporationplacestoppriorityonlife,safetyand lawcompliance.At thesame time,wewillwork tobuildbondsoftrustwithsociety,includingourcustomersandshareholders.

StandardsofConduct

AnexcellentcompanycontinuingprofitableandsustainablegrowthManagementVision

1 2

We wi l l a im to realize a sustainable society by achieving sustainable growth while balancing financial performance and CSR.

TopMessage

PresidentandChiefExecutiveOfficer,RepresentativeDirector

I became President and Chief Executive Officer on June 22, 2017.Over the years, I was primarily working on the construction of thermal power plants, which are an important part of the social infrastructure. Even after taking office, I will make use of this experience and strive to help create a sustainable society with employees and other stakeholders through the business of social infrastructure that supports people’s lives. I look forward to your continued support.

The management vision of Toshiba Plant Systems & Serv ices Corporat ion (the

“Company”) and its group companies (collectively, the “Group”) is to be “an excellent company that continues profitable and sustainable growth.” In our capitalist society, “profitable and sustainable growth” is necessary for a company to survive, but at the same time, I think the most important factor behind this is for a company, as a member of society, to contribute to a

“sustainable society.” Our philosophy is that in order to continue profitable and susta inable growth as s tated in our management vision, pursuing profits based on management that balances financial performance and CSR, and sustaining group growth, will ultimately allow us to be an excellent company.

In FY2016, the Group’s consolidated net sales and ordinary income increased compared to the previous fiscal year. In fact, we have been continuing to grow

ASustainableCompanySupportingaSustainableSociety

sustainably, with year-on-year earnings growth, since 2004, when Toshiba Plant Systems & Serv ices Corporat ion was established in conjunction with the merger of Toshiba Engineering & Construction Co. Ltd. and Toshiba Engineering Corp. Going forward, we would like to continue to make steady progress towards reaching our FY2019 goals of net sales of ¥260 billion and ordinary income of ¥22 billion as set f o r t h i n t h e F Y 2 0 1 7 M e d i u m - T e r m Management Plan.

U n d e r t h e F Y 2 0 1 7 M e d i u m - T e r m Management Plan, we will continue to p u r s u e i n n o v a t i o n t h r o u g h B C M * management across all group companies and all divisions. BCM management refers to balancing the pursuit of profits with consideration of social issues, based on the four perspectives of “finances,” “society and cus tomers ,” “work p rocesses ,” and

“ lea r n i n g and g rowth .” Unde r t h i s

DevelopingGroup-wideBCMManagement

management approach, we are not only focusing on pursuing profits, but are also conscious of our CSR activities. The Group’s business activities have a different level and s c o p e o f i m p a c t o n e a c h o f o u r stakeholders, including shareholders and other investors, customers, suppliers, people in local communities, government, as well as our employees and their family members. We will continue to practice balanced management that is trusted by all of our stakeholders.

S ince FY2015, the Group has been revising the CSR promotion framework. Based on the “Basic Commitment of the Toshiba Group,” we formulated our own

“Commitment,” “Management Vision,” and “Standards of Conduct,” and in 2016 we published our first CSR Report. In CSR Report 2017, viewing the international standard ISO 26000 “Guidance on social responsibility” as a guideline suitable for

WorkingonNewCSRIssues

systematically reporting the Group’s CSR activities, we have prepared the report with a focus on the seven core subjects included in the standard, thereby enhancing the content of the report and making it more reader-friendly. In addition, we actively disseminate information by introducing our businesses in as much detail as possible on our website, and by providing disclosure according to the 73 principles of the Corporate Governance Code.

G o i n g f o r w a r d , w h i l e v a l u i n g communication with all of our stakeholders, we will continue to focus on the three key points of “integrity,” “accountability,” and

“transparency” for the company and managers alike. I hope that you will look forward to Toshiba Plant Systems & Services Corporation’s evolving CSR management.

July 2017

*BCM (Balanced CTQ Management):A management methodology of maintaining a balance between financial and other business conditions as well as management quality to realize a company’s management vision. CTQ (Critical to Quality) refers to the most important management-related issues.

MasatakaHayashi

3 4

ToshibaPlantSystems&ServicesGroup’sBusinessDomains

ToshibaPlantSystems&ServicesGroupemphasizes thebuildingofa socialinfrastructurethatenablespeopleactiveinallworksofsocietyandindustrytocontinuallybe ensuredofsecurityandsafety.

Toshiba Plant Systems& ServicesGroup’sprincipalsphereofbusiness includesthebuildingofa foundationthat supports society and industry through theconstructionof a social infrastructureencompassingpowerplantsandsubstationfacilities,waterandsewagefacilities, transportation facilities, industrialplantsandbuildings.

InfrastructureandIndustrialSystemsDivision

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.

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), Hamakawasaki Office (Kawasaki City)

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

BranchOfficesHokkaido Branch Office (Sapporo City), Shin-etsu 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), 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), Shizuoka Office (Mishima City)

SHIBAURA PLANT CORPORATIONKANSAI TOSHIBA ENGINEERING CORPORATIONTOSHIBA ENGINEERING SERVICE CORPORATIONES TOSHIBA ENGINEERING CORPORATIONSKS CORPORATION

DomesticNetwork ConsolidatedSubsidiaries(Domestic)

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 CORPORATION

AffiliatesUsingEquityMethodAccounting(Domestic)

Toshiba Power Systems Inspection Services Co., Ltd.

ConsolidatedAffiliates(Overseas)

PowerSystemsDivision

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.

Source: Tokyo Electric Power Company Holdings, Incorporated

5 6

▪Acceleratingoverseasbusinessdevelopment

◦Cultivate new markets　Entry into promising emerging markets　(Africa, the Middle East, Central Asia, etc.)　Clean energy initiatives◦ Accelerate the reinforcement of

global business structure

▪Enhancingqualityandtechnologicalcapabilities

◦ Enhance technological capabilities at each EPC stage　Project engineering capabilities　Project management capabilities　Develop construction technologies 　(construction methods and equipment)◦ Raise efficiency through work process

optimization and IT (i-JOBS)◦Differentiate ourselves through research and development

▪Strengtheningcompetitivenessthroughcoststructurereforms

◦ Enhance engineering functions　Make engineering tools more sophisticated◦ Reinforce on-site capabilities　Promote IT on the frontlines　Shorten construction timeframes◦Promote procurement cost reductions　Promote and expand international procurement 　and integrated procurement using global network

BeanExcellentCompanyThatContinuesProfitableandSustainableGrowthPursuitofandFurtherProgressinProcessInnovation

Tobeanexcellentcompanycontinuingprofitableandsustainablegrowth,theGroupcreatedtheMedium-TermManagementPlan,whichwasinitiatedinFY2017.Underthisplan,theGroupisadvancingspecificmeasuresbasedonthethreebasicstrategiesstipulatedintheplan.

Basic Strategies:Wewill steadilyachieve strongearningsandgrowthunderthethreebasicstrategies.

1 Creatingabusinessmodeltosteadilyachievestrongearningsandgrowth

2 PursuinginnovationthroughBCMmanagement

3 PromotingCSR-orientedmanagement

QuantitativeTargets:Wewill strive toachieve“profitableandsustainablegrowth.”

FY2015 FY2016 FY2017 FY2018 FY2019

Net sales (Billions of yen)

■Ordinary income (Billions of yen)

Overseas sales ratio

■Power Systems■Infrastructure and Industrial Systems

129.5

26% 24% 23%27% 30%

89.8

219.3

18.7

139.6

87.1

226.8

19.0

135.0

100.0

235.0

20.0

145.0

105.0

250.0

21.0

150.0

110.0

260.0

22.0

▪Expandingbusinessdomainsandmarkets

◦Overseasthermalpowerplants 　Coal-fired thermal, combined-cycle, large thermal peripheral equipment◦Domesticindustrialthermalpowerplants 　Biomass-mixed fuel, gas-fired combined-cycle, 　large upgrade and maintenance work◦Commercialthermalpowerplants 　Large and high-efficiency coal-fired thermal, LNG thermal◦Nuclearpowerplants 　Decommissioning measures for Fukushima Daiichi Nuclear Power Station, 　address new regulatory standards, extend operating life of aging plants◦Hydroelectricpowerplants 　Construction and replacement

PowerSystem

s

◦EPC*formanufacturingplants　Semiconductors, chemicals, food products, etc.◦Cleanenergypowergenerationfacilities 　Biomass fuel (liquid, woody), solar, etc.◦Waterandsewagetreatment 　Measures to handle earthquakes and flooding, upgrade old facilities◦Buildingfacilities,datacenters 　Stable power supply multiplexing/enhancement, 　upgrading extra-high voltage substations◦Transportationsystems 　Airport lighting, etc., Railway frequency converters 　/transformers, etc., Road-related ETC, etc.

InfrastructureandIndustrialSystems

* EPC: Packaged orders that encompass engineering, procurement, and construction

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. Toshiba Plant Systems &

Services Group

ComplianceEconomiccontribution

Great placeto workSafety

Work as a memberof society

Life in harmony withthe environment

Corporategovernance

Riskmanagement

Customers

Employees andfamilies

Shareholders

Suppliers

Local community

Global environment

Feature:Medium-TermManagementPlan(FY2017—FY2019)

1

3

Creating a business model to steadily achieve strong earnings and growth

Promoting CSR-oriented management

We will establish BCM management in all divisions.◦ Balanced management based on four perspectives

(Finances, customers, work processes, learning and growth)◦ Set goals at the individual employee level◦ Pursue innovation through inter-divisional projects◦ Implement BCM management in domestic

and overseas affiliates

Company-wide strategy map Clarify goalsTop management●Finances ●Society/customers

●Work processes ●Learning/growth

●Finances ●Society/customers●Work processes ●Learning/growth

Divisional strategy mapWork in line with the strategiesEach organization/individual

Inter-divisionalproject

MarketinginnovationAssess level of

achievement

Follow up

on progress

Formulate and

roll out strategies

Field/procurementinnovation

Designinnovation

2 Pursuing innovation through BCM management

7 8

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 thoroughcompliance

and operate properly

Communication withstakeholders

Protect the environmentwhich supports life,

and contribute to society

CSRManagement

ImportantCSRInitiatives Organizational Governance

Corporate governance

Shareholders and investors

Employees

Employees

Environmental management

Suppliers

Customers

Local communities

Human Rights

Labor Practices

Environment

Fair Operating Practices

Consumer Issues

Community Involvement and Development

P.13～16

P.17

P.18～22

P.23～25

P.26

P.27～28

P.29～31

●Contribution to sustainable development, including health and a prosperous society

●Consideration of stakeholders’ expectations

●Compliance with relevant laws and regulations, as well as respect for global code of conduct

Society’sneeds

Stakeholders

Human Life,Environment,Society

Compliance

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

CSRPromotionFrameworkThe Company has established a CSR

Governance Committee chaired by the head of the Administration & Human Resources Division. This committee performs cross-organizational oversight of CSR-related staff division operations 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 Group.

ISO 26000 is the international guideline for social responsibil ity issued in November 2010 by the International Organization for Standardization.

This report considers ISO 26000 to be a suitable guideline for systematically reporting the CSR activities of the Toshiba Plant Systems & Services Group, and we have prepared and edited this report with a focus on the seven core subjects in ISO 26000 (organizational

governance, human rights, labor practices, the environment, fair operating practices, consumer issues, community involvement and development).

For the items categorized in each of the seven core subjects, we report on the basic ideas, initiatives, and future policies, in as simple terms as possible, keeping in mind our stakeholders and their relation to each subject.

Aggressively implementingCSRmanagementasa companythatcontributestothebuildingofafoundationthatsupports societyandindustry

Inorder tocontinue tobe trustedbysociety,theToshibaPlant Systems&ServicesGrouppromotesallbusinessactivitieswiththehighestpr ior i ty p laced on l i fe , sa fety and lawcompliance,andfulfills itssocialresponsibilitiessoastosatisfyallstakeholders.

PreparedBasedonISO26000

9 10

ToshibaPlantSystems&ServicesCorporationplacestoppriorityonlife,safetyandlawcompliance.Atthesametime,wewillworktobuildbondsoftrustwithsociety,includingourcustomersandshareholders.ActionPolicy ActivityThemes FY2016Activities FY2017IssuesandGoals

OrganizationalGovernance

In order to continue to be a corporate group trusted by society, we enhance the corporate governance system and strive to raise our level of management transparency and effectiveness.

Enhancement of initiatives for the 73 principles • Considered and disclosed the policy for initiatives addressing all 73 principles • Review the policy for initiatives addressing all 73 principles

Enhancement of the risk management system• Created a whistleblower system (“Board of Statutory Auditors Hotline”) with the Board of Statutory Auditors as the contact point

• Implemented training (e-learning, etc.) related to Toshiba Plant Systems & Services Corporation’s Standards of Conduct, Antimonopoly Act compliance, and prevention of bribery

• Make the internal control system for corporate governance function effectively

• Make sure all officers and employees understand the Standards of Conduct and continually implement risk compliance and other types of training, to bolster compliance awareness

Maintaining ethical standards

• Compliance lectures given at each office and branch office by officers, and followed up with people who did not attend (compliance meetings and e-mail delivery of lecture materials)

• Implemented training (e-learning, etc.) related to information security and personal data protection• Systematically implemented training related to ethics, compliance, Standards of Conduct, etc. at rank-based training (managers, supervisors, young/new employees)

• Continually provide education related to compliance and information security (e-learning, rank-based training, etc.)

We carry out business operat ions that meet the expectations of our shareholders and other investors, and strive to provide timely and accurate information disclosure.

Enhancement of corporate value

• Revised the dividend policy• Provided timely disclosure as stipulated by the Tokyo Stock Exchange as an enhancement of IR activities, and

provided timely and appropriate information for institutional investors (financial results meetings, IR meetings, etc.)• Implemented a full review as a way to strengthen our information dissemination capability on the public website• Issued CSR Report to disseminate information about CSR management

• Ensure a stable share price, market capitalization, and dividend payout ratio

• Strive to disclose appropriate IR information in a timely manner

HumanRights

Toshiba Plant Systems & Services Corporation has 3,196 employees, while including group companies (5 domestic, 8 overseas), there are 4,430 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.

Respect for human rights • Held human rights lecture• Provided education on human rights at rank-based training

• Strive to have all officers and employees correctly understand human rights so that it becomes part of the corporate culture

LaborPractices

Training and utilization of personnel• Conducted employee survey (awareness survey) and each division implemented measures based on the results• Held evaluator training for education for feedback system• Continually held global training aimed at improving communication skills and management skills throughout the year

• Enhance the personnel evaluation feedback system and use it to develop human resources

• Continually implement all sorts of programs to develop global personnel

Supporting diverse working styles• Introduced a system under which employees can work with a high level of motivation until the age of 65 by revising the system to treat senior employees

• Established an environment whereby employees confirm their career plans in meetings with their superiors and are able to strategically juggle both a work life and family life

• Foster the creation of workplace environments that address diversity

Promoting work-life balance• Reduced total working hours through the activities of the Hatsuratsu Work-life (Work-life Balance) Promotion Committee

• Regarding the system to support a balance between work and nursing care, based on the purport of the legal amendment, we established a more compatible mechanism and widely informed employees about it

• Appropriately maintain working hours that depend on work performance

Ensuring health and safety• Carried out various activities based on the health and safety goals and the health and safety activities plan table

planned at the beginning of the year In particular, we carried out safety activities utilizing imprinting cards/ similar accident prevention check sheet

• Thoroughly establish basic work operations and actions through the continual improvement of occupational health and safety management systems

• Promote mental healthcare and strive to create healthy and positive workplaces

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

Use of environmental management systems • Continued to acquire certification after receiving the ISO 14001 external periodic review in November 2016• Established environmental targets and implementation plans in all active divisions, and took actions based on these targets and plans

• Adjust the environmental management systems in conjunction with amendments to JIS Q14001 standard

Reducing the environmental impact of business activities

• Confirmed that there were no violations of compliance obligations such as violations of laws and regulations• Despite an increase in energy-derived CO2 emissions in conjunction with the expansion of the scope of management of workplaces,

we continued to implement energy-saving measures throughout the Company and maintained optimum energy consumption• Despite increased industrial waste emissions due to increased construction volume, we promoted the

separation of waste and other appropriate disposal methods, and achieved the target recycling rate• In conserving biodiversity, in addition to actively participating in environmental conservation activities at

each worksite, we continued to optimize the amount of copy paper consumed in order to protect forests

• Continuously strive to reduce our environmental impact in all EPC processes

Developing and providing eco-friendly construction

• Provided eco-friendly products such as large-scale solar power plants (8 projects, total generating capacity of 119.73 MW), gas engines (21 units, total generating capacity of 15.6 MW), small hydroelectric power generation (5 units, total generating capacity of 147.7 kW), and biomass power generation (2 projects, total generating capacity of 185 MW)

• Develop eco-friendly products and provide eco-friendly services

FairOperatingPractices

Based on the understanding that our business depends on 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

• Implemented thorough compliance related to procurement by providing training to officers and employees about relevant laws and regulations, including anti-trust laws, subcontractor regulations, construction business act, and ordinance for eliminating organized crime groups

• Continue to engage in transparent and fair business transactions• Work to eliminate anti-social forces• Promote enrollment in social insurance

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

• Confirmed CSR considerations such as environment and quality at the time of contracts (new, renewals, etc.) with suppliers, and demanded that suppliers make progress

• Promote CSR together with suppliers, and build good partnerships with suppliers who have reliable quality

ConsumerIssues

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 a broad range of fields, such as thermal, hydroelectric and nuclear power plants, and public and private-sector facilities including energy-related businesses, production facilities and related facilities.

Maintaining quality management • Carried out activities to maintain ISO 9001 certification• Made preparations, including writing a quality manual, to adopt ISO 9001:2015

• Maintain the quality management system by renewing ISO 9001 certification, and work to enhance quality

Enhancement of quality• Continuously improved the effectiveness with PDCA cycles by carrying out quality activities based on the quality control policy, along with efforts aimed at organizing and rectifying the quality management system

• Continuously carry out PDCA cycles in order to enhance quality, and work to continuously improve the quality management system

Raise customer satisfaction level • Analysis of customer satisfaction and dissatisfaction data revealed no serious dissatisfaction information• Implemented improvement activities to address customer needs based on survey results

• Strive to provide services that contribute to solving social issues• Continuously implement improvement activities to address

customer needs

CommunityInvolvementandDevelopment

We have offices in 8 countries around the world. As a good corporate cit izen, 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

• Kyoto: Supported the conservation of a statue of Kotokuin no Miya at Shinnyoji• Philippines: Supported the construction of a bridge and donated solar power generation facilities with storage batteries to an elementary school in an area without electricity

• India: Continued to support the Solar Lantern project• Vietnam: Supported the construction of Trung Dinh Satellite Preschool and Vien Son Primary and Secondary School Dormitory

• Provide continual support for projects that restore and preserve domestic cultural properties

• Continually build social infrastructure and support programs for the next generation in emerging countries

Social contribution activities through engagement with local communities

• Carried out similar social contribution activities at our offices and local worksites• Maintained the system to help employees individually engage in volunteer activities

• Continually engage in social contribution activities at offices and local worksites• Provide cooperation and support for volunteer activities carried out individually by employees

FY2016CSRActivitiesandFY2017IssuesandGoals

組織統治

人権

労働慣行

環境

公正な事業慣行

消費者課題

コミュニティへの参画及びコミュニティの発展

組織統治

人権

労働慣行

環境


消費者課題


組織統治

人権

労働慣行

環境


消費者課題


組織統治

人権

労働慣行

環境


消費者課題


組織統治

人権

労働慣行

環境


消費者課題

コミュニティへの参画及びコミュニティの発展組

織統治

人権

労働慣行

環境


消費者課題


組織統治

人権

労働慣行

環境


消費者課題


11 12

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 shareholders,

investors and customers as an important management policy.In addition, based on the purpose and spirit of the “Corporate

Governance Code” established by the Tokyo Stock Exchange, the Company aims to realize sustainable growth and medium- to long-term corporate value improvement, and in order to clarify the basic philosophy and initiatives of the Company with respect to corporate governance, we have established “Our Efforts Related to the Corporate Governance Code” as policies corresponding to all 73 principles, the full text of which is disclosed on the Company’s website.

Corporate Governance Policy

Corporate Governance SystemThe Company is a company with Board of Statutory Auditors. The Company has

ten 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.BoardofDirectorsThe Board of Directors generally holds meetings once a month in order to

ensure that Directors are efficiently 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.ManagementMeetingThe 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.

3.NominationandCompensationCommitteeThe 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.BoardofStatutoryAuditorsIn 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 that 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.AuditingDivisionThe 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 and accounting 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.AccountingAuditorPricewaterhouseCoopers 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.

Aimingtoimprovemanagementtransparencyandeffectiveness,andtoincreasecorporatevalueAsacompanythathandlessocial infrastructuresystems, inordertokeepthetrustof

stakeholderssuchascustomersandshareholders,weenhanceourcorporategovernancesystemandstriveto improvemanagementtransparencyandeffectiveness.Westrivetobuild strong relationshipsof trustwith shareholders, investors, customersandotherstakeholders,andtoincreasecorporatevalue.

CorporateGovernance


組織統治

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Excerpt from the Corporate Governance report (June 22, 2017)http://www.toshiba-tpsc.co.jp/pdf/ir/or/pdf/corporate_governance_20170622.pdf

CorporateGovernanceStructure

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

ReportSubmitreport

Advice Appointment / Dismissal

Advice / Guidance

Internal Audit

Appointment / Dismissal

Report

13 14

Organizational G

overnance


組織統治

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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.

Policy and Structure of Risk Management and 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.

Whistleblower System

In format ion d isc losure i s 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 voluntari ly disclosing information (including non-financial information) determined to be important for shareholders and other stakeholders.

Policy on Disclosure of IR Information

TogetherwithShareholdersandInvestors

We recognize that proactively engaging in dialogue with our shareholders to listen to their opinions and requests , and re f lec t ing such feedback in to 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 prov ides feedback about the out l ine of such information and shares information with other directors and relevant divisions 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 pos i t ion , to prepare for fu ture bus iness 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 considerat ion, 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

AssociatesSuppliers’ employees

President

CROAdministration &

Human Resources DivisionRisk ComplianceCommittee

Risk Compliance-relatedCommittee

Auditing Division

Statutory Auditors Corporate attorneys

DivisionsEmployees

ReportInstructionWhistleblowingWhistleblowing

WhistleblowingWhistleblowing

Instruction /Advice

Report

Audit report

Report /Submit report

Guidance / Support

Report / Deliberation

Website IR information

Shareholder Newsletters

DividendAmountTrends (Yen/share)

FY2013

7.5 7.5

7.5 2519

12.519

15

7.5

37.5 38

20(Plan)

20(Plan)

40(Plan)

FY2014 FY2015 FY2016 FY2017(Plan)

0

10

20

30

40

50Interim dividend　　　 Fiscal year-end dividend

※

Breakdown of FY2015 interim dividend: Ordinary dividend = ¥12.5, Special dividend = ¥12.5

WhistleblowerSystem

RiskManagementandComplianceStructure

UsingmyexperienceasanattorneytofulfillmydutyasanOutsideDirectorSince 2015, the Company has been reviewing its CSR philosophy and initiatives. I became an Outside

Director in 2015, and I have observed the strong leadership of the management team and the status of internal initiatives. I feel that the Company’s governance and compliance structures have been significantly bolstered over the past two years.

For starters, the Company increased the number of Outside Directors to two from one, adding Mr. Yoshikazu Yokoyama, who possesses a high level of expertise as a certified public accountant, as an Outside Director. By taking advantage of each other’s backgrounds, and having multiple Outside Directors express their opinions from different perspectives, the Company has been able to achieve a balanced checks and balances function. In addition, the Company has established the Nomination and Compensation Committee, and I was appointed as chairperson. As the chairperson, I will focus on putting in place a framework for the nomination of officers and for director compensation, and design systems that are consistent with the actual circumstances of the Company.

Under the FY2017 Medium-Term Management Plan, the Company is promoting CSR-oriented management as one of the key measures to realize the management vision of being “An excellent company that continues profitable and sustainable growth.” As a lawyer, I will continue to provide assistance to the management team, especially in the areas of compliance and risk management.

I think that we are a company that possesses global technology as well as ambitious and respectable personnel. I expect that the Company will continue to develop as a corporate group capable of creating new value needed by society by harnessing its on-site capabilities and human capabilities.

OutsideDirectorKishikoWada

[Biography]April 1996 Registered as Attorney at Law (Present position)August 2015 Outside Director of the Company (Present position)

>>> MessagefromOutsideDirector

RiskHotlineWhistleblowing

WhistleblowingContact*Independentfromexecutiveside

Response Investigate /Check

Investigate /Check

Coordination

Coordination

Attorney’sOffice

WhistleblowingContact

Whistleblowing

Response

Whistleblowing

Response

BoardofStatutoryAuditorsHotline

WhistleblowingContact

BoardofStatutoryAuditors

Employees

RelevantDivisions

DivisionResponsibleforRiskManagementandComplianceMatters

15 16

Organizational G

overnance

HumanRights LaborPractices

組織統治

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消費者課題


組織統治

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Recognizingdiverse valuesandrespectingindividuals

Creating rewardingworkplaces thatemphasizeemployeehealthandsafety

InaccordancewithbasichumanrightsprotectedbytheConstitution,relatedlawsandregulations,aswellasourCommitment,theToshibaPlantSystems&ServicesCorporation’sStandardsofConductrecognizesthediversevaluesof individualsbasedonarespect forpeople,andrespectsthecharacter, individuality,andprivacyofpeople.TheStandardsofConductalsoprohibitdiscriminatory remarksandactionsagainst race, religion,gender,nationality,physicalormentaldisability,age,orsexualorientation,aswellasphysicalviolence,sexualharassment,powerharassment,andotheractsthatviolatehumanrights.

Ourpersonnel areour greatestmanagement resource, andare the sourceofourcompetitivenessasacompany. Inordertocreateanenvironmentwhereemployeescanworkwithpeaceofmind,wepromotesafetyactivitieswiththeaimofhavingzeroworkaccidents.Wealsokeepouremployeesenergizedbymakingthemostofeachemployee’sabilitiesanduniquestrengths.Bothof these initiatives leadtocontinualgrowth for theCompany.

HealthandSafetyInitiatives

Basic Health and Safety PolicyThrough 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.

ExampleofHealthandSafetyInitiative

❶Safetysensoryeducation ❷SafetyEnvironmentCompetition

Experiencing the impact from falling into a safety net

Experiencing hanging from a belt-type safety harness

Safety Environment Competition in FY2016

In order to raise awareness of the health, safety, and the environment, and ensure proactive promotion of environmental activities, the Group as a whole, including partner companies, holds a “Safety Environment Competition” each July. In FY2016, the event was held on July 13, and began with reports on examples of safety and environmental management, and included presentation of the “Safety achievement award” and the “Environmental achievement award.”

Human Rights Enlightenment (Education)

In order to ensure that employees have a correct understanding of human rights, and are fully aware of them, we continuously provide education on human rights, including during new employee training, rank-based training when people are promoted, and other occasions.

Human Rights LectureEach December, as one of the events held

during human rights week, an outside lecturer is invited to give a “human rights lecture” in order to raise employee awareness about human rights issues. The theme of the lecture is different each year. Topics of past lectures have included approaches to creating comfortable workplaces and measures to prevent harassment.

Employment of People with Disabilities

Based on the philosophy of normalization, the Company actively employs people with disabilities, and supports them to thrive in the workplace. Its ratio of employees with disabilities was 2.06% as of March 31, 2017, and the Company has received approval to calculate this ratio on a group-wide basis as an exception since FY2014.

Establishment of Consulting Service on Human Rights

The Company established a consultation service on human rights such as sexual harassment and power harassment, and is promoting the creation of an environment where each employee can work with peace of mind. Both the Administration & Human Resources Division and the labor union have consultation desks, making it easy for employees to receive support. Issues brought to the Company’s attention are addressed quickly, and the privacy of people who seek consultation is protected.

2012 2013 2014 2015 2016(FY)

2.17% 2.28% 2.19%2.18%2.06%

FY2012 and FY2013 are for the Company on a stand-alone basisGroup-wide calculation basis as an exception since FY2014

1.Wehave integratedouroccupationalhealthandsafetymanagement systems intoouroperationsandconstructionworkmanagementframeworks,andallemployeesfollowit.

2.Westrivetocooperateandpartnerwithlocalcommunitiesbasedonthecooperationofallpeopleinvolvedinourbusinessactivities,andaimtocreatecomfortableworkplaceenvironmentsand raiseour levelofhealthand safetybasedon safetyactivities throughexcellentcommunication.

3.Inadditiontoincreasingtheessentialsafetyofourfacilitiesandtheequipmentweuse,weaimforathoroughsafetymanagementframeworkinaccordancewithourhealthandsafetyplanwhichdetailsthereductionofthepotentialrisksforworkplaceaccidentsandharmfulfactors.Withthis,weensuresafeconditionsandsafeactivities,andwehavesetatargetofzeroaccidents/disastersasourgoalforoccupationalsafety.

4.Weeliminatefactorsthatunderminehealth,proactivelycreatebrightandcomfortableworkplaces,andproactivelyimplementprogramsthatsupporthealthandprovidehealthguidanceetc.,therebypromotingbothphysicalandemotionalhealth.

5.PromotinguniformhealthandsafetyactivitiesacrosstheentireGroup,weinformallemployees,affiliatesandpartnercompaniesaboutBasicHealthandSafetyPolicyaswellashealth-andsafety-relatedlawsandregulations,rules,andstandardsbyholdingeducationanddrills,andothersuchactivitiestoincreaseawareness.

“Safety sensory education” is aimed at reminding employees of the importance of the basic actions and work operations for safety by providing a virtual experience of dangers under conditions approximating a real worksite environment while allowing employees to feel how scary an accident or disaster is. The main curriculum includes experiencing a variety of situations related to potential dangers during regular work, including the impact from falling into a safety net, pinched fingers, hanging from a belt-type safety harness, and electric shock. Since the first being held in June 2007, “Safety sensory education” has already been held more than 150 times at worksites both in Japan and overseas.

18

Labor Practices

17

Human Rights

Health and Safety Goals

◦BasicworkoperationsandactionsAll 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 risk assessment results into work instructions and manuals, and use them in TBM/KY activities* attended by all employees, thereby continuously improving occupational health and safety management systems.

◦MentalhealthcarepromotionWe aim for managers and employees to

have “zero hea l th impa i rments” by energizing workplace communication, promoting mental healthcare, and working to create comfortable and low-stress work environments.

*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.

TogetherwithEmployees

Four Areas of EmphasisWe view diverse personnel and working styles

positively, and work on a global basis to create work environments that lead to imagination and compet i t iveness for our bus inesses . 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.

Therefore, we set the four areas of emphasis of “Personnel training and utilization,” “Supporting diverse working styles,” “Promoting work-life balance,” and “Creating healthy and safe workplaces.”

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.

◦“Feedbackmeetings”thatbuildrelationshipsof trustbetweensuperiorsandemployeesthatreporttothemThe 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.

◦TrainingsystemWe develop employees by effectively combining OJT, OFF-JT,

and self-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

The aim of OFF-JT is to provide 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 opportunit ies 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.

SafetyGoal:Zero workplace accidents(1) Firm establishment of basic work operations and actions(2) Reconfirm the rules for health and safety(3) Continual improvement of occupational

health and safety management systems(4) Enhancement of health and safety education

HealthGoal: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

Personneltrainingandutilization

Creatinghealthyandsafeworkplaces

Supportingdiverseworkingstyles

Promotingwork-lifebalance

PersonnelUtilizationandTrainingSystem

Personneltraining

Careerplan Employeesdesiringtransferetc.

Feedback

Personneltreatment

Interview

Careerdesign

OJT

Self-development

OFF-JT

TrainingSystem

Rank-basedtraining

Globaltraining

Health,safetyandenvironmentaltraining

Innovationtraining

Specializedskilltraining

Trainingtoacquirepubliccertification Other

LaborPractices

組織統治

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消費者課題


Personneltrainingandutilization

<Voice>Myparticipationin“Safetysensoryeducation”

◦ I f I go to t he s i t e a s a supervisor, I need to protect b o t h m y s e l f a n d o t h e r workers from dangers and accidents. After participating in the sensory education, I realized the importance of all workers taking responsibility for the safety of one another.

◦ Human errors can occur anywhere. I learned that, for this reason, no matter what kind of work is being done, everyone at the worksite

must work with a shared awareness of safety. I feel that sharing safety awareness is very important, as only a little bit of neglect can lead to a major accident.

◦ I had thought that everyone had a strong awareness of safety, but after attending the sensory education, I realized that your sa fe ty i s on ly ensured if all workers are careful about safety. Once you experience danger in a

hands-on manner, it remains as a memory and as an experience, so I will make great use of it going forward.

■Voiceofnewemployees◦ I felt that it is important to

act while also conjecturing what kind of things would lead to accidents as I work. I wi l l a lways th ink about potential risks and act based on my predictions of risk.

◦ Since the damage of the a c c i d e n t t h a t a c t u a l l y occurred at the worksite w a s f a r b e y o n d o u r imagination, I will make sure to work with a complete understanding of risks.

■Voiceofpartnercompanies

NewemployeesofToshibaPlantSystems&ServicesCorporationforFY2017

IncorporationImprovement

Compliance check

Thorough implementation

UtilizationinTBM/KYAll employees reconfirm

operations rules

EnhancementofriskassessmentPreparation work through

Post-work clean up

Basic work operations and actions

SafetypatrolsPromote implementation

and check status

IncludeinworkinstructionsandmanualsWrite down and confirm

detailed countermeasures

High stressRegular checks

Improvement/enhancement

Industrial physician instructions

LinecareUnderstand and improve the

workplace environment

Self-careStress checks, awareness

and response

Promotion of mental healthcare

EnhanceknowledgeofcareRank-based training,

lecture

Industrialphysician/healthstaffConsultations/advice/referral

to outside institutions

20

Labor Practices

19

LaborPractices

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消費者課題


◦Re-hiringsystemTo support 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 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 the Toshiba Plant Systems & Services Group Re-hiring System which incorporates incentive structures for employees to be active on the front lines at worksites. Employees wishing to do so may renew their employment up until the age of 65.

◦PromotingwomenintheworkplaceThe Company’s ratio of female employees is 6.3% (as of March 31,

2017). Although this ratio is low, female employees are working in a wide range of fields, including technical, sales, and administrative positions. In addition, the Company is creating mechanisms that allow female employees to thrive in the workplace, including increasing the 2012 2013 2014 2015 2016 2017

Men　　　Women

10

15

20

25

20.7 21.0 21.3

16.5

20.6

16.2 17.0 17.4 17.9 18.3

21.5 21.7

Averagenumberofcontinuousyearsofemploymentformenandwomen (Units: Years)

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

◦Supportingemployeestobalancework,childcareandfamilycareTo support employees to 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

MeasurestosupportemployeestobalanceworkwithchildcareandfamilycareChildcare 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 graduation

Family 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 member

Family care leave (for the elderly and/or disabled) 5 days a year per applicable family member

RatioofwomenreturningtoworkaftergivingbirthSinceFY2013

100％

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

Accumulated leaveEmployees 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 vacationEmployees 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 Employees can take 5-day travel vacation upon reaching mandatory retirement at age 60

InitiativesthroughtheHatsuratsuWork-lifeLevelThe 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.

number of women hired and enhancing training programs in order to increase the number of female employees in leadership roles. The Company is also working to improve the retention rate (the average number of continuous years of employment by female employees is 18.3 years as of March 31, 2017) through its initiatives to support a balance between work, childcare and family care.

◦Initiativesaimedatshorteningtotalhoursworked

Self-care

Linecare

FirstLevelPreventionandhealthpromotion

SecondLevelEarlydetection,quickresponse

ThirdLevelConvalescencesupport

Trainingfornewhiresandagainafterfirstyear

Year5training

Rank-basedtraining

Stresschecks

Employeesatisfactionawarenesssurvey

Managerialtraining

Comprehensiveworkplaceinspectionsbymanagers

Interviewswithclinicalpsychologists

Supportingdiverseworkingstyles

Promotingwork-lifebalance

Creatinghealthyandsafeworkplaces

<Voice>～Usingthechildcareleavesystemandshortenedworkinghourstoprovidechildcare～

I have two children, and I have used the childcare leave system twice now, taking a total of roughly three years of childcare leave. Fortunately, since there were several senior colleagues in the same department who had already returned to work after using this system, I was able to receive some good advice from them. For example, they recommended that I take longer breaks by combining days off with my paid vacation days.

My children are still young, and both of them are in a nursery school close to our home. These days, I use the shortened working hours to provide childcare to leave work early and pick them up. The shortened working hours system provided for in the Child Care and Family Care Leave Act covers up the period up until a child enters elementary school, but the Company has extended the system through the graduation from elementary school, which will be a big help to me. Some of the other parents I have met at the nursery school are only able to work shortened hours for only a few years, and some are even thinking about finding a new job for that reason. I am also able to use the flex-time system, and I am appreciative of the fact that I can set my work schedule precisely in 15 minute increments based on my own judgment. Going forward, I would like for the systems to be expanded even further to give those employees who will have children even more peace of mind.

PlantDesignAndEngineeringDepartmentStructuralDesignGroup

◦Preventing lifestyle-relateddiseases (healthguidance,specifiedhealthguidance)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.

◦MentalhealthcareOur 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 through 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.

21 22

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Environment

組織統治

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EngaginginenvironmentalactivitiesinallEPCbusinessprocessesWerecognizethatworkingtosolveenvironmentalissuesinallofourbusinessactivitiesisoneofthemainpillarsof thecompany’smanagement.Allofouremployeesstrivetoreducetheenvironmentalimpactofourbusinessactivities.

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.

◦EnvironmentalManagementConceptWe work to reduce the environmental impact of our EPC business activities.

◦BasicPolicyfortheEnvironmentBased 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.

Our Stance on Environmental Management

EnvironmentalManagement

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* activities

CConstruction Commissioning （）

*3R: Reduce, Reuse, and Recycle

Mitigation of Climate ChangeIn order to control the emissions of carbon dioxide (CO2), which is said to be the main factor behind

global warming, we are working on various activities to reduce CO2 emissions derived from energies such as electricity and vehicle fuel used at factories, offices, and worksites.

Activitytopics1.At theAtsugi Factory, 48 factory lightswere switched to LEDlighting, reducingelectricityconsumptionby19,000kWhperyear(equivalentto10t-CO2).

2.Asapartof theeventsofGlobalToshibaEnvironmentalAction’senvironmentmonth,alloffices turnedoff their lightsat thesametimetosaveelectricity.

3.WelengthenedtheCoolBizperiod(May-October). Introduction of LED lighting at the Atsugi Factory

(Note) The values above are from FY2016. Criteriausedtocalculateenergydata Electricity: Power consumption of offices and factories. Gasoline and light oil: Fuel for vehicles used by offices and worksites. Criteriausedtocalculatecopypaperandwaterresources Copy paper: Amount of copy paper purchased by offices and factories. Water resources: Amount of water resources used by factories. ConversioncoefficientforCO2 Electricity: 5.10 t-CO2 /10,000 kWh Gasoline: 2.32 t-CO2/KL Light oil: 2.62 t-CO2/KL Conversioncoefficientfortreesusedforcopypaper 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: 3.82 million kWh　Gasoline : 240 KL　Light oil : 217 KL

Energy-derived CO2 emissions　Amount of Emissions: 3,073 t-CO2

Amount of generated waste　Total amount of discharged waste: 1,469 t　Final disposal volume: 1 t

Copy paper　Number of trees cut down: 2,726 treesWater resources　Amount of discharged water: 1,796 ㎥

Copy paper: 35,430,000 sheetsThe volume of water resources received 1,796 ㎥

Procurement of materials and services

Conservation of biodiversity

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

Environmental Activities and Material Flow

We will work to reduce environmental impact in all processes of our business activities.

Environmental Activity Targets

ActivityObjective ActivityItems ActivityTargetMaintenance of zero

environmental non-conformanceCont inuance of zero env i ronmental non-conformance Zero environmental non-conformance

Mitigation of climate change Reduction of energy-derived CO2 emissions Maintenance of activity level

Efficient use of resourcesReduction of total amount of generated waste Reduction of amount of discharged wasteSorting of waste with more care Improvement of recycling rate

Conservation of biodiversity

Reduction in amount of copy paper purchasedPromotion of purchase of eco-friendly products

Promotion of paperless meetingsPromotion of 3R activitiesPromotion of green procurement

Reduction in the volume of water resources received Maintenance of water receiving activity level

1.Viewingtheprotectionoftheglobalenvironmentasoneofmanagement’sprimaryresponsibilities,wepromoteenvironmentalactivities,includingtheprotectionofbiodiversity.

2.Westrivetopreventglobalwarmingandtoeffectivelyuseresourcesinallofourbusinessactivities,fromdesigntomaintenanceservices.

3.Wedevelopproductsandtechnologies,aswellasimproveourservices,soastoreduceenvironmentalimpact.4.Wecomplywithalllawsandregulations,guidelineswehaveendorsed,andourownenvironmentalstandards.5.Weworkwith localcommunities,andallofouremployees, includingmembersofaffiliates,engage inenvironmentalactivities.

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Eco-FriendlyProductsandServices

SolarPowerPlants

SmallHydroelectricPowerPlants

HUIS TEN BOSCH TOHMEI SOLAR POWER PLANT installed on the former site of a parking lot (Sasebo City, Nagasaki Prefecture: 2.1 MW)

ORIX Ono Solar Power Plant installed on the top of a reservoir (Ono City, Hyogo Prefecture: 19.1 MW)

Although the definition of small hydroelectric power generation is not uniform among all countries, in Japan’s electric power industry, hydroelectric power that generates under 10,000 kW has been regarded as small hydroelectric power. Small hydroelectric power generation methods include “run-of-river type” and

“conduit type.” Unlike dams and other “reservoir type” methods, these power generation methods use the energy of the water flow directly without storing river water. These are eco-friendly power generation facilities that often effectively use existing energy such as general rivers, agricultural waterways, sabo dams, and water and sewerage systems, and do not require large-scale preparatory construction work.

◦ExamplesofconstructionsoverseasDemand for “run-of-river-type” small hydroelectric power generation using valuable water resources to

produce electricity, is rising, especially in South Asia, and the Group, including local subsidiaries, will continue to focus on increasing orders for eco-friendly small hydroelectric power generation facilities.

Procurement Policy

Ensuringfair,transparentandfreecompetitionandappropriatebusinesstransactionsWeprovide fairbusinessopportunitiestosuppliers,andprioritizedoingbusinesswith

companies thatcomplywith relevant lawsand regulations, take theenvironment intoconsideration,andhaveexcellenttechnologyandquality.

FairOperatingPractices

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Various training programs related 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 and

regulations 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)

In addition to complying with the Patent Act, the Copyright Act, and other laws and regulations related to intellectual property rights, as well as respecting the legitimate intellectual property rights of third parties, we use intellectual property rights to protect

the outcomes of our technological activities, and contribute to society by actively utilizing these intellectual property rights in our businesses.

Philosophy on Intellectual Property

The basic policy for internal controls stipulates that officers and employees of the Group shall reject any relationships with anti-social forces that pose a threat to the order and safety of civil society, and the entire Group shall take a resolute approach to all such issues.

As a concrete measure, the Group has strengthened collaboration, steadily implemented public relations supervision training, worked to share and utilize information related to public

relations. The Group also investigates the attributions of counterparties when initiating new business transactions and has thoroughly introduced organized crime group elimination clauses into business contracts. In addition, we have built a system that allows us to cooperate with external organizations such as police and corporate attorneys, and to respond appropriately and in a timely manner to any approaches from anti-social forces.

Handling Anti-Social Forces and Our Policy

SupplierExpectations

1.CompliancewithLawsandRegulations,SocialCustoms,Etc.

(1)Ensuringcompliancewiththeprevailinglawsand regulations, includinganti-trust laws,commercialcodes,subcontractorregulations,constructionbusinessact,personalprivacylaws, ordinance for eliminatingorganizedcrimegroups,etc.

(2)Prohibitionof bribery (any gift, payment,consideration, financial or non-financialadvantage or benefit of any kindwhichconstitutesacorruptandillegalpractice)

2.ConsiderationstoHumanRights,Labor,HealthandSafety

3.EnvironmentalConsiderations (1)Suppliers are encouraged to adopt ISO

14001-basedenvironmentalmanagementsystems and to promote th i rd-partycertification.

(2)Suppliers are encouraged to reduce oreliminate use of potentially hazardoussubstancesandtoutilizeGreenProcurement.

(3)Suppliers are encouraged to promoteenvironmentalprotectionactivities.

4.MaintainingSoundBusinessOperations

5.SecuringExcellentProductQuality6.O f f e r i n g Goods and /o rServicesatAppropriatePrices

7.FirmDeliveryCommitmentandEstablishment

8.EnhancementofTechnologicalCapabilities

9.ContinuingSupplyinTimesofUnexpectedCircumstances

ExamplesofOtherEco-FriendlyInitiativesAt worksites and factories, we engage in various eco-friendly activities, such as reducing industrial

waste and optimizing packaging materials, while in offices we use both sides of copy paper.

Solar power plants use sunlight, a renewable energy, and are eco-friendly power generation facilities that suppress emissions of carbon dioxide (CO2), which is considered to be the primary cause of global warming. As of March 2017, we have received orders for more than 650MW of cumulative output and orders for over 150 mega-solar plants alone, which is top-class in the industry. Going forward, we will continue to contribute to curbing CO2 emissions.

◦ExamplesofconstructionsutilizingexistingenvironmentsWe construct solar power plants on the former sites of parking lots

and reservoirs without making changes to the land.For the “HUIS TEN BOSCH TOHMEI SOLAR POWER PLANT,” installed

on the former site of a parking lot, we used our original “KiTy System” for solar panel mounting, which is friendly to the natural environment by leaving the parking lot as is without leveling the land when constructing the facility.

The “ORIX Ono Solar Power Plant,” installed on the top of a reservoir, was built as an eco-friendly power plant leaving the function of the reservoir in place. The solar power plant functions in normal weather, and water temporarily pools in the reservoir during times of heavy rain.

We emphasized leaving the natural environment unchanged and implemented eco-friendly construction for solar power generation that uses renewable energy.

We hold a firm belief that materials procured should be of superior quality and safety to meet each of our customers’ needs. Our unique Standards 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.

Fair Operating Practices

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ConsumerIssues

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Inordertodeliverhigh-qualityinfrastructureandservicestocustomersBasedonCommitment(ourbusinessphilosophy)andStandardsofConduct,weimplementeffective

measureswithrespecttoqualitymanagement, informationsecurityandtheprotectionofpersonaldata,andstrivetoraisethelevelofcustomersatisfactionbycontinuallyimprovingthesemeasures.

Quality ManagementWe 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.

We 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.

Acting in accordance with Toshiba Plant Systems & Services Corporation’s Standards of Conduct, and sticking to our Commitment stipulating that each employee is committed to serving society through their work in the field of social infrastructure, we aim to contribute to society by making quality our highest priority, ensuring product safety and reliability, securing a proper worksite environment, complying with legal regulations, and by providing services, products, and systems that fulfill customer needs.

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 services, products and systems that fulfill customer needs, 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.

QualityControlPolicy

ManagementFrameworkofQualityManagementSystem

*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

ManagementReviewMeetingCPLCommittee*

QualityOversightDivision

Qualitymanagementgroups

Divisions

Groups

ConceptualDiagramofQualityManagementSystem

Plan

Do

Act

Check

ContinualimprovementofQualityManagementSystem

QualityControlPolicy

Formulateplanstoachievequalitytargets

Customer

・Worksiteenvironm

ent

・Infrastructure

・Humanresources

<Operationmanagementofresources>

Informentirecompanyofimportantquality-relateditemsQuality-relatedMeeting

<Clarifyrequirements>・Productmonitoringandmeasurement・Managementofnon-compliantproducts・Correctivemeasures(products)

Analyzedata

Managementreview

Construction→Delivery

Design-Development-Purchasing-Manufacturing

Contracts(contractspecifications)

Monitoringandmeasurement(customersatisfaction,datafromeachprocess)Internalaudit,ISO9001certificationrenewal(externalaudit)

Evaluationandimplementationofpreventiveandcorrectivemeasures

ISO9001certificationmarkWe have obtained ISO

9001 certification from Lloyd’s Register Quality Assurance Limited, the international standard for quality management systems.

Quality Management System (QMS) Overview and Management Framework

We have 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.

ManagementFrameworkofPersonalDataProtectionManagementSystemConceptualDiagramofPersonalDataProtectionManagementSystem

Plan

Do

Act

Check

PrivacyPolicy

Riskassessment(createregistry)

Devisecountermeasures

Identifypersonaldata(createregistry)

Checkmanagementvulnerability Measurestorespondtoemergencies(establishsystem)

Implementcountermeasures・Periodicinspectionsofimplementationstatus・Recognitionofresidualrisk

Disclosure/penalty・Compliancewithdisclosureobligations・Fairhandling

Handlecomplaintsandconsultations・Clarifyresponsecontact・Sincereresponse

RenewPrivacyMarkcertification(externalaudit)

Managementreview

Providerefreshertraining

Assessmentandimprovementstomattersthatneedcorrecting

Conductinternalaudit

・Record

・Documentation

・Establishframework

・Legalcompliance

<BasicElements>

Continualimprovem

entofPersonalData

ProtectionManagem

entSystem

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 str ive to protect such information by preventing inappropriate disclosure, leakage, or usage.

We have establ ished the “Informat ion Secur i ty Guidelines” to effectively and appropriately manage the information we hold, and minimize and avoid information-related risk. The key details of the Guidelines are as follows.①Organizationalmanagement

Establish an organizational framework to implement PDCA (Plan-Do-Check-Act) cycles

②Physicalandtechnologicalmanagement Implement various security measures to raise the efficiency and effectiveness of information management

③Human/legalmanagement Appropriately conclude written pledges, confidentiality agreements, etc. necessary for legal compliance concerning the use of information

President

(Conveneswhenpersonaldataleakageorotherincidentoccurs)

Personaldataprotectiondivisionmanagementofficer

Personaldataprotectiondivisionmanager

Personaldataprotectionmanagementimplementationofficer

Handlerofpersonaldata

Personaldataprotectionauditofficer ChiefRisk-compliancemanagementOfficer(CRO)

InformationSecurityCommittee

Personaldataprotectionmanagementpromotionofficer

Personaldataprotectioncommitteemember

Consultationcontactstaff

PersonalDataProtectionCommittee

ChiefPrivacyOfficer(CPO)

Company-wideconsultationcontact

※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.

Information Security

Protection of Personal Data

ManagementFrameworkofInformationSecurity

ManagementofficerDeputyManagementofficer

InformationSecurityCommitteeDivisionsinchargeofinformationsecurity<Duties>①Mattersrelatedtothepreventionofinsidertrading②Mattersrelatedtothehandlingofpersonaldata③Mattersrelatedtothehandlingoftechnologicalinformation④Mattersrelatedtothehandlingofintellectualpropertyright⑤Mattersrelatedtothehandlingofelectronicinformation⑥Mattersrelatedtothebusinesscontracts⑦Mattersrelatedtoinformationsecurityotherthantheabove

Secretariat

Affiliates

Implementationmanager

Managementexecutives

PracticesCommittee

Implementationmanagers

Headsofthesections

Consumer Issues

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ContributingtothesoundandsustainabledevelopmentoflocalcommunitiesWecontributetotheadvancementofsocietybysupportingvariousactivitiesasacompanythathandlessocialinfrastructure.We

proactivelyengageinsocialcontributionactivitiesasagoodcorporatecitizenandvaluecommunicationwithlocalcommunities.

Assistance for Efforts to Pass Down Japanese Culture and Techniques

SocialContributionActivities

BasicPolicyforSocialContributionActivitiesAs a company that handles social infrastructure, we

contribute to sound and sustainable 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 properties in order to pass ancient Japanese culture along to future generations. Overseas, we provide ongoing support for activities related to improve social infrastructure and develop future generations (construction of schools, etc.).

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

ActivityConcepts1.AssistanceforeffortstopassdownJapanesecultureandtechniques In order to pass ancient Japanese culture and wonderful traditions down

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

2.Assistanceforactivitiestoimprovesocialinfrastructure 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.Assistanceforactivitiestodevelopfuturegenerations We support the construction of schools and other educational facilities that

provide learning opportunities to children that will build our future society.4.Promotionofactivitiesrootedinlocalcommunities We value communication with people in local communities in which we operate,

and continually engage in programs that contribute to local communities.

KeyprojectssupportedbytheprojecttorestoreandpreserveculturalpropertiesinImperialConventsYear Assistanceproject Location2016 The ongoing conservation of a statue of Abbess Gekkyoken, Shinnyoji temple Kyoto Prefecture2015 The conservation of a statue of Kotokuin no Miya at Shinnyoji temple Kyoto Prefecture2014 The conservation work on a set of Genji screens belonging to Chūgūji Imperial Convent Nara Prefecture2013 The conservation of a statue of Hongakuin no Miya at Shinnyoji temple 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 temple Kyoto Prefecture

2011 The restoration of a nikai-zushidana , a two-tiered decorated cabinet, belonging to Sanji Chion-ji Imperial Convent Kyoto Prefecture

2010 The restoration of the Nanakusa Emaki handscroll belonging to Hokkeji Imperial Convent Nara Prefecture

◦Statusof conservationprojectof statuesatShinnyojitempleShinnyoji temple was built in 1342. It is the temple where Hōkyōji temple

Abbesses are buried. Shinnyoji temple is one of three branch temples*3 associated with Daihonzan (head temple of a Buddhist sect) Shōkokuji temple, the others being Rokuonji temple (Kinkakuji) and Jishōji temple (Ginkakuji). It is a venerable temple and also ranked as one of the ten second-tier (jissetsu ) of the Five Mountains and Ten Monasteries System of Rinzai Zen temples ( gozan-jissetsu ).

The four statues of nuns at Hōkyōji Imperial Convent housed in Shinnyoji temple are extremely rare portrait sculptures. In order to pass these valuable cultural properties on to future generations, following the statue of Hongakuin no Miya, we conserved the statue of Kotokuin no Miya. We are currently conserving the statue of Abbess Gekkyoken, which is the third statue to be conserved.

Going forward, in addition to the one remaining statue and other statues held in the Dharma halls of temples other than Hōkyōji Imperial Convent, we are also planning conservation support that includes the buildings of Shinnyoji temple and its gardens.*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 temple.

◦SupportfortheinfrastructureprojectsinemergingcountriesAs a company that handles social infrastructure, we have helped upgrade inadequate infrastructure in emerging countries

where we have deep business ties, and offer assistance*1 to contribute to the development of local communities.

Solar panels Solar charging station

KeyprojectssupportedYear Assistanceproject Description Country

2016 Bridge construction*1We 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

2016Solar power generation facilities*2

We installed solar power generation facilities with storage batteries at an elementary school in an area without electricity so that students can learn in a comfortable environment under lighting

Philippines

2015 Installation of reverse osmosis water filter system*1

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

2014Installation of water system*1

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

◦SupportfordeliveringelectricLighttopeoplelivingwithoutelectricityOne estimate says that 1.2 billion people around the world have no access to electricity. As a company that handles social

infrastructure, we have been stretching out a helping hand since FY2008 to the “Solar Lantern project”* 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

lanterns to people living in approximately 50 villages without electricity.In FY2016, in addition to our activities, we cooperated with our local subsidiary in India to support its activities.Going forward, the Group will continue to deliver electric Light.

* Solar Lantern project: Funding to The Energy and Resources Institute (TERI) of India through the NPO Gaia Initiative

Bridge construction Solar power generation facilities with storage batteries

Assistance for Activities to Improve Social Infrastructure

Supporting Activities of the Solar Lantern Project

The statue of Kotokuin no Miya (Before restoration)

The statue of Kotokuin no Miya (After restoration)

*1 Funding through the Nonprofit Organization NGO World Vision Japan*2 Facility installation and donation through Lions Club Tokyo Akasaka

◦Assistance in restorationandpreservationofdomesticculturalpropertiesAs 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, and are still active mainly in Kyoto and Nara.

Comm

unity Involvement and D

evelopment

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Assistance for Activities to Develop Future Generations

Our business offices and worksites engage in activities to contribute to local communities. Going forward, as a good corporate citizen we will continue to actively engage in social contribution activities.

◦LocalvolunteeractivitiesWe participate in events to sell sweets made by disabled people in the Company cafeteria, and participate in activities to support their independence.

◦ExperienceintheworkplaceWe give nearby junior high school students the oppor tun i t y to exper ience the manufacturing process at our factory.

◦Volunteerclean-upeventsWe pick up trash, cigarette butts and other items discarded near business offices and worksites.

◦ForestmaintenanceWe participate in events to maintain forests, including thinning operation.

◦CollectionofPETbottlecapsWe part ic ipate in events to provide vaccines to children around the world by donating collected PET bottle caps.

◦CommemorativebackpackgiftWe participate in events to collect used backpacks and send them to children overseas.

◦AssistancedescriptionWe are currently constructing the Vien Son Primary and Secondary School

Dormitory in Socialist Republic of Vietnam. Vien Son Primary and Secondary School is located in the poorest mountainous region in northern Vietnam where many ethnic minorities live. The school has lodging facilities for students living in remote areas, but the existing dormitories are aging badly, and need to be rebuilt quickly in order to ensure their safety and make them more sanitary.Location: Vien Son commune, Van Yen district, Yen Bai Province, Socialist

Republic of VietnamProjectPeriod: April 2017 to January 2018 (Approximately ten months)Description: Dormitory for 40 people (complete with a kitchen and cafeteria)

KeyprojectssupportedYear Assistanceproject Country

2016 Currently constructing the Vien Son Primary and Secondary School Dormitory Vietnam

2015 Construction of Trung Dinh Satellite Preschool Vietnam2014 Construction of Mwakikoya Primary School Tanzania2013 Construction of Nonchan Kindergarten Laos2012 Construction of Gezani Primary School Tanzania2011 Construction of Beribide Primary School Bangladesh2010 Construction of Shadashivbari Primary School Bangladesh

◦Support for theconstructionof schoolsandotherfacilitiesinemergingcountriesSince FY2010, we have been offering assistance* to construct primary schools,

kindergartens and other educational facilities in order to provide children in emerging countries with an opportunity for learning.*Assistance: Funding through the Nonprofit Organization NGO World Vision Japan

Nonchan Kindergarten in Laos

Gezani Primary School in Tanzania

Promotion of Activities Rooted in Local Communities

Trung Dinh Satellite Preschool in Vietnam

I have carefully read the “2017 CSR Report,” which is your second publication of this report, for the first time. My opinion as a third party is as follows.

CommendablePoints◎ The headl ine of the top message includes

“Balancing financial performance and CSR,” and in fact, you have included “Promoting CSR-oriented management” as one of the initiatives in the Medium-Term Management Plan. This is commendable. Even in Japan, investors are increasingly evaluating corporate value from the perspective of ESG (Environment, Society, and Governance), and we anticipate that companies will integrate business management and CSR more and more with time.

◎ Although it has been two years since your full-fledged effort to bolster CSR management, you have compactly and clearly expressed your philosophy on CSR management. Also, the report is structured in accordance with ISO 26000, making the entire report approachable and easy to read.

◎ The “Message from Outside Director” does its part to ensure the soundness and transparency of your corporate governance.

◎ It is commendable that, since FY2013, you have maintained a 100% rate of women returning to work after giving birth. The <Voice> section written by a female employee who returned to work made it clear why she was able to return.

◎ I t i s a l s o c o m m e n d a b l e t h a t y o u h a v e established a social contribution activities policy and activity concepts based on your business characteristics, and have carried out a wide array of initiatives compatible with them.

GoingForward◎ Concerning reporting on results of CSR activities

and issues and goals for the following fiscal year, I recommend that you describe them in a format that takes the PDCA cycles into account, such as

“Targets,” “Achievements,” “Evaluation” and “Targets” for the next fiscal year. I also recommend doing likewise with respect to the targets of environmental activities.

◎ Based on your business characteristics, Standards of Conduct, and the last three ideas of the Top Commitment, it would be desirable if you disclose numerical data related to health and safety goals of

“Labor Practices.” Also, it would be desirable for you to disclose the current situation and issues at construction sites, CSR activities based on these, and comments from employees at construction sites in <Voice> sections.

◎ The Paris Agreement went into effect in November 2016, and in May 2016, the Cabinet decided on the Plan for Global Warming Countermeasures. Some aspects of your business (main business) lead to increased greenhouse gas emissions, while other aspects contribute to the reduction of emissions through the introduction of renewable energy and clean energy. Therefore, it would be desirable for you to explain to stakeholders how you are involved in climate change mitigation measures (global warming countermeasures), and how you view the issue and such initiatives.

◎ With respect to the above, your efforts in emerging countries should be evaluated not only with respect to the environment, but also, for example, with respect to targeting environmental and social issues using Sustainable Development Goals (SDGs) (Ex: Supplying energy, supplying safe water, developing social infrastructure, providing support for education). In addition, if, starting with the next edition of this report, you are able to include the comments of stakeholders who have benefited from your business (main business) and support activities in <Voice>, readers will be able to gain an even better understanding of your CSR activities.

Third-PartyOpinion

MasatoshiIkariManager,SeniorConsultant

EnvironmentandSocialRiskSection,RiskManagementDepartment3

InterRiskResearchInstitute&Consulting,Inc.Part-timeTeacher,SeikeiUniversity

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

CSR Report2017

TOSHIBA PLANT SYSTEMS & SERVICES CORPORATION CSR REPORT 2017

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

　　　

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