management structure and corporate data 2014 - kitz · toyo metals co., ltd., was established and...

Board of Directors, Officers

President

Director

Director

Director

Outside Director

Outside Director

Audit & Supervisory Board Member

Audit & Supervisory Board Member

Outside Audit & Supervisory Board Member

Outside Audit & Supervisory Board Member

Yasuyuki Hotta

Toshiaki Natori

Masahiko Kondo

Takahito Hirashima

Shigerou Kusano

Kazuyuki Matsumoto

Corporate Data (as of March 31, 2014)

Stock Information (as of March 31, 2014)

Corporate Name

Head Office

URL

Established

Capital

Fiscal-year Ended

Stock Exchange Listing

Number of Employees

1-10-1 Nakase, Mihama-ku, Chiba-shi, Chiba Prefecture 261-8577, Japan TEL: +81-43-299-0111

http://www.kitz.co.jp/english/ http://www.kitz.com/

January 26, 1951

21,207,084,670 yen

March 31

First Section of Tokyo Stock Exchange (Code: 6498)

1,211 (Non-consolidated basis)

Date of resolution of meeting of shareholders: March 31Year-end dividend: March 31Interim dividend: September 30

Total Number of Authorized Shares

Shares Issued and Outstanding

Japan Trustee Services Bank, Ltd.

Nippon Life Insurance Company

The Master Trust Bank of Japan, Ltd.

Kitazawa Agent’s Stock Ownership Plan

The Chase Manhattan Bank, N.A. London S.L. Omnibus Account

Kitazawa Ikueikai Foundation

SUMITOMO LIFE INSURANCE COMPANY

KITZ Corporation Client Stock Ownership Plan

Mizuho Corporate Bank, Ltd.

Sumitomo Mitsui Banking Corporation

13,338

4,542

4,175

3,634

3,453

3,411

2,879

2,867

2,553

2,553

12.21

4.16

3.82

3.33

3.16

3.12

2.64

2.63

2.34

2.34

400,000,000 shares

109,218,877 shares Note: The number of shares shown above does not include 11,177,634 shares of treasury stock that were held as of March 31, 2014.

However, announcements will be placed in the Nihon Keizai Shimbun in cases where it is not possible to make an electronic announcement. URL for announcements: http://www.kitz.co.jp/

In addition, a public announcement will be made in advance as necessary.

Major ShareholdersName

InvestmentShareholdings (thousands) Percent of total shares issued (%)

Notes:1. The above list of major shareholders does not include the 11,177 thousand shares of treasury stock held as of March 31, 2014. 2. The above number of shares held includes shares associated with trust operations as follows:

3. Shares held by SUMITOMO LIFE INSURANCE COMPANY include 86 thousand shares in the variable insurance account and 32 thousand shares in the separate account. 4. The total number of shares used to calculate percentages of shares held does not include 11,177,634 shares of treasury stock.

Financial instruments exchange

Treasury stocks

Other domestic companies

Individuals and others

Foreign companies

0.4%

9.3%

12.9%

28.6%

15.1%

Less than 1,000 shares

1,000 shares or more



0.7%

12.3%

10.2%

25.1%

1 million shares or more51.7%

Financial institutions33.7%

Management Structure and Corporate Data2 0 1 4

Directors andAudit & Supervisory Board Members

President Chief Executive Officer

Senior Executive Officer

Managing Executive Officer

Executive Officer

Executive Officer

Executive Officer

Executive Officer

Executive Officer

Executive Officer

Executive Officer

Executive Officer

Executive Officer

Yasuyuki Hotta

Toshiaki Natori

Masahiko Kondo

Takahito Hirashima

Yoshihiro Atobe

Choji Suzuki

Kazuhiko Shimodaira

Mitsuo Otaki

Toshiyuki Murasawa

Taro Kimura

Kazuhiko Hirabayashi

Tetsuo Sakane

Executive Officers (as of April 1, 2014)

Composition of Shareholders Composition of Shareholdings

Mizuho Corporate Bank, Ltd., Sumitomo Mitsui Banking Corporation, Mitsubishi UFJ Trust and Banking Corporation, The Bank of Tokyo-Mitsubishi UFJ, Ltd., The Hachijuni Bank, Ltd., The Yamanashi Chuo Bank, Ltd., The Chiba Bank, Ltd.

Various types of valves, actuated valves, automated control valves, emergency shutoff equipment, systems devices, metal fittings and diverging tube attachable devices, forged products, water supply equipment

Takafumi Azuma

Junichiro Haishima

Hirosuke Chihara

Akio Mitsufuji

Main Banks

Products

Electronic announcement

100 shares

10,437

June

Reference Dates

Number of shareholders

General Meeting of Shareholders

Share Unit Number

Public Announcement Method

Japan Trustee Services Bank, Ltd.: 13,338 thousand shares The Master Trust Bank of Japan, Ltd.: 4,175 thousand shares

(as of June 27, 2014)

14

1951

19521959

1960

1962

1965196719681969

1970197319741975

19801984

1985

19881989

1991

199219941995

19981999

20002001

20022003

2004

2005200720082009

2010201120122013

Kitazawa Mfg. Works was established. The Nagasaka Plant was constructed in Nagasaka-cho, Yamanashi, and the Company started manufacturing and selling bronze valves.

The Nagasaka Plant received JIS certification for bronze valves. Toyo Metals Co., Ltd., was established and started manufacturing brass rods.

KITZ started using a high-performance automated production system using the most advanced machinery, including automated processing and molding machines from Europe and North America.

Company name changed to Kitazawa Valve Co., Ltd. KITZ was the first in Japan to start using a brass hot forging press; started manufacturing and selling brass forged valves.KITZ became a registered trademark.Started manufacturing and selling ductile cast iron valves and stainless steel valves.Started manufacturing and selling butterfly valves.Started manufacturing and selling cast gray iron valves.

Started operations at stainless steel valve casting facility and machining facility at the Nagasaka Plant.Started operations at the Ina Plant. Started manufacturing and selling cast steel valves. Changed Japanese-character company name (still Kitazawa Valve Co., Ltd., in English).

Adopted “CHRYSANTHEMUM-HANDLE® ” for cast bronze valves.

Shares listed on the First Section of Tokyo Stock Exchange. Established KITZ Corporation of America in Houston, Texas.Established KITZ Corporation of Taiwan in Kaohsiung, Taiwan.Senior Managing Director Yusuke Shimizu named President & CEO.Established KITZ (Thailand) Ltd., in Samutprakarn, Thailand. The Nagasaka and Ina plants earned ISO 9001 quality management system certification, making KITZ the first Japanese company to receivethis certification.

KITZ merged with TOYO Metals Co., Ltd.ISO S.A. of Spain (currently KITZ Corporation of Europe, S.A.) joined the KITZ Group.Changed name to KITZ Corporation and moved the head office to the Makuhari district of Chiba-shi. Established KITZ Engineering Service Co., Ltd.The Chino Plant was first in Japan’s brass bar industry to receive ISO 9002 certification for quality management systems.Shimizu Alloy Mfg. Co., Ltd., joined the KITZ Group, enabling the Group to begin supplying products for water supply systems.The Nagasaka Plant received ISO 14001 certification. Announced the development of KEEPALLOY brass and bronze alloys that are easy to machine and are free of lead for environmental protection.Miyoshi Valve Co., Ltd., joined the KITZ Group.

The Ina Plant received ISO 14001 certification.KITZ marked its 50th anniversary, announcing a New KITZ’ Statement of Corporate Mission, Action Guide and a Long-term Management Plan “Target 2010.”

Managing Director Kimio Kobayashi was named President & CEO.Purchased semiconductor manufacturing machine device business from the former Benkan Group and established KITZ SCT Corporation to operate this business.

Established KITZ Corporation of Kunshan in China. Established KITZ Corporation of Shanghai in China.Established KITZ Corporation of Jiangsu Kunshan in China.Purchased the valve business of the former Toyo Valve Co., Ltd., and began business at its reorganized operations.Spun off the KITZ brass bar manufacturing and micro filter businesses to form KITZ Metal Works Corporation and KITZ Micro Filter Corporation.Purchased the brass bar manufacturing business of the former Kyoto Brass Co., Ltd.Established KITZ Corporation of Lianyungang in China.Director and Senior Executive Officer Yasuyuki Hotta was named President & CEO. KITZ Metal Works Corporation and Kyoto Brass Co., Ltd., merged. Perrin GmbH, a ball valve manufacturer in Germany, joined the KITZ Group.

Established a new Long-term Management Plan called KITZ Global Vision 2020 and a new Medium-term Management Plan.Established KITZ Corporation of Asia Pacific Pte. Ltd., in Singapore.Transferred manufacturing operations of Toyo Valve Co., Ltd., to KITZ, changing Toyo Valve into a sales company.KITZ Europe GmbH started operations as European regional headquarters.Purchased Mikuni Engineering (Singapore) Pte. Ltd., an exclusive distributor in Singapore, and began operations as KITZ Valve & Actuation Singapore Pte. Ltd.

Certification item Certification body Business site Certification item

JIS product certification (JIS B 2062 Sluice valves for water works)

ISO 9001 / ISO 14001

Certified by Japan Water Works Association

ISO 9001 / ISO 14001

ISO 9001 / ISO 14001


ISO 9001 / ISO 14001


Manufacturing plant for PED/CE Marking Products

CSA<Canadian Standard Association>

FM<Factory Mutual>

UL<Underwriters Laboratories>

Australian Standard

NSF

ISO 9001 / ISO 14001


UL<Underwriters Laboratories>

ISO 9001 / ISO 14001

TS certification

ISO 9001 / ISO 14001


TS certification

ISO 9001

ISO 9001 / ISO 14001


API Spec 6D

ISO 9001

API Spec 6D

DIN/GOST certification obtained


CRN<Canadian Registration Number>

Type Test Certification of Special Equipment(CHINA)

Vender Registration Certificate

JIS product certification (JIS B 2011 Bronze, gate, globe, angle and check valves)

Manufacturing plant for AD2000-Merkblatt HP0 products

Manufacturing plant for AD2000-Merkblatt W0 castings




Management Structure and Corporate Data 2014

Approvals and Authorizations of the Group’s Principal PlantsHistory

KITZ Corporation Nagasaka Plant

ISO 9001

Shimizu Alloy Mfg. Co., Ltd.

KITZ SCT Corporation

KITZ Micro FilterCorporation

KITZ (Thailand) Ltd.

KITZ Corporation ofTaiwan

KITZ Corporation ofKunshan(China)

KITZ Corporation ofJiangsu Kunshan(China)

KITZ Corporation ofLianyungang(China)

KITZ Corporation ofEurope, S.A. (Spain)

Perrin GmbH(Germany)

ISO 14001


API Spec Q1 and 6D




KITZ Corporation Ina Plant

ISO 9001

ISO 14001


API Spec Q1 and 6D


JIS product certification (JIS B 2031 gray cast iron valves)

KITZ Corporation Chino Plant

ISO 9001

LRQA

LRQA

LRQA

Bureau Veritas Japan Co., Ltd.



Japan Water Works Association (JWWA)



American Petroleum Institute (API)

32

American Petroleum Institute (API)



TÜV SÜD

TÜV SÜD


TÜV SÜD

Japan Water Works Association (JWWA) (Ministry of Economy, Trade and Industry)


ISO 14001

JIS product certification (JIS B 2011 Bronze, gate, globe, angle and check valves)


Image of anti-corrosive lead-free brass bars

Lead-free valves for North America

Management and Financial Information

Consolidated Financial Highlights

Net Sales Operating Income Ordinary Income

Sales by Reportable Segments Operating Income by Reportable Segments Sales by Geographical Area

Consolidated Financial Summary

In recent years, regulations against lead and cadmium contained

in copper alloys have been strengthened in Japan and overseas.

For example, in the European Union (EU), cadmium has already

been strictly regulated by environmental regulations, as

exemplified by the RoHS Directive 2002/95/EC (Restriction of

the use of certain Hazardous Substances) and the ELV (End-of

Life Vehicles) Directive. Additionally, in the United States, a

revision to the Safe Drinking Water Act (SDWA) made the use of

lead-free copper alloys in materials for water-supply piping

mandatory from January 2014.

Under these circumstances, KITZ Metal Works Corporation,

a member company of the KITZ Group, jointly developed with

KITZ Corporation the new materials “XA Metal” and “XC Metal”

anti-corrosive lead-free brass bars and “XE Metal,” a lead-free

brass bar for general use. These materials have high recyclability

and excellent machinability. These new lead-free brass bars

have become available on the market since September 2013.

Unlike conventional lead-free brass bars, the materials do not

contain such chemical elements as silicon or bismuth, so they do not have to be segregated from other recyclable materials,

T O P I C

leading to high recyclability. Moreover, “XA Metal” and “XC

Metal,” patent pending, show the excellent performance of

corrosion resistance against dezincification, stress corrosion

cracking, erosion and corrosion, characteristics needed for

materials used in water handling equipment.

We will supply these new materials to the markets around

the world for lead-free applications either as a bar material or a

complete valve.

New Material Anti-Corrosive Lead-Free Brass Bars Jointly Developed

FY2009 FY2010 FY2011 FY2012Item

Net sales

Year-on-year

Operating income

Year-on-year

Ordinary income

Year-on-year

Net income

Year-on-year

Total assets

Year-on-year

Interest-bearing liabilities

ROE (Return on equity)

EPS (Earnings per Share)

PER (Price Earnings Ratio)

Cash dividends per share

Free cash flows

(Millions of yen)

(%)

(Millions of yen)

(%)

(Millions of yen)

(%)

(Millions of yen)

(%)

(Millions of yen)

(%)

(Millions of yen)

(%)

(Yen)

(Times)

(Yen)

(Millions of yen)

Operating income by reportable segments shows figures beforeadjustments for company-wide expenses and others.

Note:

96,592

(24.0)

6,976

(3.0)

6,248

(3.5)

3,079

(9.3)

97,533

(3.5)

27,555

6.0

27.23

20.0

7.0

8,759

106,059

9.8

6,341

(9.1)

5,929

(5.1)

3,063

(0.5)

100,138

2.7

30,165

5.8

27.36

14.6

7.0

2,911

108,446

2.3

4,638

(26.9)

4,388

(26.0)

2,480

(19.0)

94,981

(5.2)

24,290

4.7

22.71

15.8

7.5

(291)

111,275

2.6

6,558

41.4

6,521

48.6

4,039

62.8

99,972

5.3

22,319

7.2

36.98

12.8

9.5

3,366

FY2013

117,355

5.5

6,470

(1.3)

6,501

(0.3)

3,564

(11.8)

107,583

7.6

23,728

5.7

32.63

15.5

10.0

1,120

(Millions of yen) (Millions of yen) (Millions of yen)

(Millions of yen) (Millions of yen) (Yen)

Valve Manufacturing Business87,888 (74.9%)

Valve Manufacturing Business8,597 (91.2%)

Japan 84,970(72.4%)

Brass Bar Manufacturing

Business20,953

(17.8%)

Other8,514(7.3%)

Brass BarManufacturing Business

548 (5.8%)

Other 285 (3.0%)

FY2013Total 117,355

(Millions of yen)

FY2013Total 9,430(Millions of yen)

FY2013Total 117,355

(Millions of yen)

Asia and Middle East

18,888(16.1%)

Other 5,007 (4.3%)North America8,488 (7.2%)

2 0 1 4

Note: Free cash flows = Cash flows from operating activities + Cash flows from investing activities

150,000

6,9766,341

4,638

6,470 6,2485,929

4,388

6,5016,521

96,592106,059

108,446

117,355111,275

100,000

50,000

0

8,000

6,000

4,000

2,000

8,000

6,000

4,000

2,000

0 0

4,000

97,533100,138

94,981

107,58399,972

7.0 7.07.5

10.0

3,079 3,063

2,480

3,564

4,039

2,000

3,000

1,000

0

120,000

100,000

80,000

60,000

20,000

40,000

10

8

4

6

2

0 0

6,558

9.5

Net Income Total Assets Cash Dividends per Share

FY2009 FY2010 FY2011 FY2012 FY2013FY2009 FY2010 FY2011 FY2012 FY2013 FY2009 FY2010 FY2011 FY2012 FY2013

FY2009 FY2010 FY2011 FY2012 FY2013FY2009 FY2010 FY2011 FY2012 FY2013 FY2009 FY2010 FY2011 FY2012 FY2013

14

FY2012(As of Mar. 31,

2013)


2014)Item

FY2012(As of Mar. 31, 2013)

FY2013(As of Mar. 31, 2014)Item

FY2012(Year ended

Mar. 31,2013)

FY2013(Year ended

Mar. 31, 2014)

Item

FY2012(Year ended

Mar. 31,2013)

FY2013(Year ended

Mar. 31, 2014)

Item

ASSETS

Total current assets

Total fixed assets

Property, plant and equipment

Intangible assets

Investments and other assets

Total assets

49,956

50,016

35,811

3,269

10,935

99,972

55,866

51,717

36,835

3,315

11,566

107,583

ASSETS

Total current assets

Total fixed assets

Property, plant and equipment

Intangible assets

Investments and other assets

Total assets

29,649

54,401

20,459

1,710

32,231

84,051

29,389

55,062

20,256

1,912

32,893

84,452

LIABILITIES

Total current liabilities

Total long-term liabilities

Total liabilities

NET ASSETS

Total shareholders’ equity

Minority interests

Total net assets

Total liabilities and net assets

21,149

18,603

39,752

60,394

977

60,219

99,972

20,703

20,101

40,805

62,865

1,075

66,777

107,583

(Millions of yen)


2013)


2014)Item

(Millions of yen)

Cash flows from operating activities

Cash flows from investing activities

Cash flows from financing activities

Effect of exchange rate changes on cash and cash equivalents

Net increase (decrease) in cash and cash equivalents

Cash and cash equivalents at the beginning of the year

Cash and cash equivalents at the end of the year

7,885

(4,519)

(3,213)

253

406

5,635

6,042

4,667

(3,546)

66

694

1,881

6,042

7,923

FY2012(Year ended

Mar. 31,2013)

FY2013(Year ended

Mar. 31, 2014)

Item

(Millions of yen)

Management and Financial Information 2014

Consolidated Financial Statements Notes: Amounts less than the unit expressed are omitted.These financial statements show major items only.

Notes: Amounts less than the unit expressed are omitted.These financial statements show major items only.

LIABILITIES

Total current liabilities

Total long-term liabilities

Total liabilities

NET ASSETS

Total shareholders’ equity

Total net assets

Total liabilities and net assets

17,017

14,986

32,004

50,381

1,666

52,047

84,051

15,218

16,052

31,271

51,070

2,109

53,180

84,452

Net sales

Cost of sales

Gross profit

Selling, general and administrative expenses

Operating income

Non-operating income

Non-operating expenses

Ordinary income

Extraordinary income

Extraordinary loss

Income before income taxes

Income taxes

Net income

65,188

49,962

15,225

11,757

3,468

876

490

3,853

54

75

3,831

1,290

2,541

64,438

50,144

14,294

11,750

2,543

1,178

446

3,275

149

68

3,355

1,573

1,782

Non-consolidated Financial Statements

KITZ Global Vision 2020 Slogan

Evolution to become a fully global company

Maximize corporate value by full globalization

Revitalization of our operations as a dynamic and conscientious group of companies

Develop global level business locations with composite functions of sales, marketing, engineering, stock, maintenance and service

Highly secured rate of profits and cash flow

Continuous development of our corporate value and social contributions by improving our values to the customer, our employees’ quality of life and mutually beneficial business with our partners

Net salesOperating incomeOperating income ratioOverseas sales ratioInterest-bearing liabilitiesEquity ratioROE (Return on equity)

250,000 million yen20,000 million yen

8.0%50%

24,000 million yen70%

7%

Net salesCost of salesGross profitSelling, general and administrative expensesOperating incomeNon-operating incomeNon-operating expensesOrdinary incomeExtraordinary incomeExtraordinary lossIncome before income taxes and minority interestsIncome taxesIncome before minority interestsMinority interestsNet income

111,27585,07126,20319,645

6,558662698

6,52123

2076,3372,2624,075

354,039

117,35590,37926,97620,505

6,470734703

6,501157132

6,5262,9063,619

553,564

Long-term Management Plan “KITZ Global Vision 2020”

Balance Sheets (Millions of yen)Statements of Income

(Millions of yen)

FY2012(As of Mar. 31, 2013)

FY2013(As of Mar. 31, 2014)Item

(Millions of yen)

Balance Sheets

FY2020 Numerical Targets (Consolidated Basis)

(Millions of yen)Statements of Income

Statements of Cash Flows

Total accumulated other comprehensive income

Total valuation and translation adjustments

(1,151) 2,836

The KITZ Group formulated its “KITZ Global Vision 2020,” a Long-term Management Plan in May 2010.

32

Shooting for the Top Market Share in Targeted Market Areas and Sectors • Joining the Ranks of the World’s Top 3 Valve Producers

Key Concept for Valve Manufacturing BusinessGlobal & Domestic

Key Concept for Brass Bar Manufacturing BusinessTargeting Higher-Value-Added Business by Drastically Streamlining Operations and Developing New Materials and New Ventures

Key Concept for OtherOffering World-Class Customer-Oriented Services (Creation of touching experiences)

Reinforcement of Business Infrastructure (Human Resources)Global Recruitment and Cultivation of Human Resources

Reinforcement of Business Infrastructure (IT / Accounting System)Investment for Reformation of Information Control Systems for Group Operations

Reinforcement of Business Infrastructure (Environment)Promoting Environment-friendly Management for Preservation of the Global Environment

Reinforcement of Business Infrastructure (CSR: Corporate Social Responsibility)Legal Compliance and Internal Control ManagementSocial Contribution

Group Network

KITZ Corporation

Head Office1-10-1 Nakase, Mihama-ku, Chiba-shi, Chiba Pref. 261-8577, JapanTEL: +81-43-299-0111

Sales Bases

Tokyo Office

Tokyo Sales Group No. 1Onward Park Building, 3-10-5 Nihombashi, Chuo-ku, Tokyo 103-0027, JapanTEL: +81-3-6836-1501

Tokyo Sales Group No. 2Onward Park Building, 3-10-5 Nihombashi, Chuo-ku, Tokyo 103-0027, JapanTEL: +81-3-6836-1501

Chiba Sales Group1-10-1 Nakase, Mihama-ku, Chiba-shi,Chiba Pref. 261-8577, Japan TEL: +81-43-299-1706

Yokohama Sales GroupMeiji Yasuda Life Radio Nippon Building, 5-85Chojamachi, Naka-ku, Yokohama-shi,Kanagawa Pref. 231-0033, Japan TEL: +81-45-253-1095

Tokyo Sales Promotion GroupOnward Park Building, 3-10-5 Nihombashi, Chuo-ku, Tokyo 103-0027, JapanTEL: +81-3-6836-1503

Air Conditioning and Instrumentation Planning GroupOnward Park Building, 3-10-5 Nihombashi, Chuo-ku, Tokyo 103-0027, JapanTEL: +81-3-6836-1502

Industrial Sales Development GroupOnward Park Building, 3-10-5 Nihombashi, Chuo-ku, Tokyo 103-0027, JapanTEL: +81-3-6836-1501

Hokkaido BranchHokkaido Sales Group12-1-25 Kita 14 Jo Higashi, Higashi-ku, Sapporo-shi, Hokkaido Pref. 065-0014, Japan TEL: +81-11-733-2225

Tohoku BranchTohoku Sales GroupAsahi Seimei Sendai Ichibancho Building, 2-7-17 Ichibancho, Aoba-ku, Sendai-shi, Miyagi Pref. 980-0811, Japan TEL: +81-22-224-5335 Water Supply Product Sales Group - TohokuAsahi Seimei Sendai Ichibancho Building, 2-7-17 Ichibancho, Aoba-ku, Sendai-shi, Miyagi Pref. 980-0811, Japan TEL: +81-22-224-5335

Head Office

Sales Bases

Production Bases

Production & Sales Bases

Others

Head Office

Marketing Bases

Sales Bases

Production Bases

Production & Sales Bases

Domestic Network

KITZ (Thailand) Ltd. (Thailand)426 Moo17 Bangna-Trad Rd., T. Bangsaothong A. Bangsaothong, Samutprakarn 10540, ThailandTEL: +66-2-315-3129~31(Manufacturing and sales of copper alloy valves and butterfly valves)

KITZ Corporation of Taiwan (Taiwan) 5-26 East Street, N.E.P.Z., Kaohsiung, Taiwan (R.O.C.)TEL: +886-7-361-1235(Manufacturing and sales of stainless steel and carbon steel valves and joints)

KITZ Corporation of Kunshan (China) No. 15 Taihu South Road Economic and Technology Development Zone, Kunshan, Jiangsu, P.R. China, 215300TEL: +86-512-5763-8181(Manufacturing and sales of stainless steel valves)

KITZ Corporation of Jiangsu Kunshan (China) No.188, Zhongyang Road, B Zone, Kunshan Comprehensive Free Trade Zone, Jiangsu Province, P.R. China, 215300TEL: +86-512-5771-6078(Manufacturing and sales of carbon steel valves)

KITZ Corporation of Shanghai (China)Room 1701-1704, International Corporate City,No. 3000 North ZhongShan Rd.，PuTuo District, Shanghai, P.R. China, 200063TEL: +86-21-6439-1249(Sales, marketing and distribution of valves)

KITZ Corporation of Lianyungang (China)No. 16 Yun Yang Road, Lianyungang Economic and Technical Development Zone, Jiangsu, Province, P.R. China, 222047TEL: +86-518-8236-6061(Manufacturing and sales of carbon steel valves)

KITZ SCT Corporation of Kunshan (China)8-3, No.3 Road, Export Processing A Zone, Kunshan, Jiangsu, P.R. China, 215300TEL: +86-512-5735-0700(Manufacturing and sales of valves and fittings for semiconductor production facilities)

U.S.A.

KITZ Corporation of America10750 Corporate Drive, Stafford, Texas 77477, U.S.A.TEL: +1-281-491-7333(Sales, marketing and distribution of valves)

KITZ SCT America Corporation 1183 Bordeaux Drive, Suite 15 Sunnyvale, California 94089, U.S.A.TEL: +1-408-747-5546(Sales, marketing and distribution of valves and fittings for semiconductor production facilities)

Europe

KITZ Corporation of Europe, S.A. (Spain)Ramon Vinas, 8, 08930 Sant Adria de Besos Barcelona, SpainTEL: +34-9346-21408(Manufacturing and sales of stainless steel and carbon steel ball valves)

KITZ Europe GmbH (Germany)Siemensstraße 1, D-61130, Nidderau, GermanyTEL: +49-0-6187-928-100(Sales and marketing for Europe)

Perrin GmbH (Germany)Siemensstraße 1, D-61130, Nidderau, GermanyTEL: +49-0-6187-928-0(Manufacturing and sales of steel ball valves)

Overseas Network2 0 1 4

14

Domestic Network

Overseas Network

Group Network 2014

Kita-Kanto BranchKita-Kanto Sales GroupSakamoto-2 Building, 3-306-1, Miyaharacho, Kita-ku Saitama-shi, Saitama Pref. 331-0812, Japan TEL: +81-48-651-5260

Niigata Sales GroupNissai Minamisasaguchi Building, 1-1-54 Minamisasaguchi, Chuo-ku, Niigata-shi, Niigata Pref. 950-0912, Japan TEL: +81-25-243-3122

Chubu Office

Nagoya Sales Group No.148KT Building, 3-9-37 Meieki Nishi-ku, Nagoya-shi, Aichi Pref. 451-0045, JapanTEL: +81-52-562-1541

Nagoya Sales Group No.248KT Building, 3-9-37 Meieki Nishi-ku, Nagoya-shi, Aichi Pref. 451-0045, Japan TEL: +81-52-562-1541

Tokai Sales GroupSumitomo Life Shizuoka Tokiwacho Building, 2-13-1 Tokiwacho, Aoi-ku, Shizuoka-shi,Shizuoka Pref. 420-0034, JapanTEL: +81-54-273-7337

Hokuriku Sales GroupS.F Building, 4-7-14 Futakuchimachi, Toyama-shi, Toyama Pref. 939-8211, JapanTEL: +81-76-492-4685

Koshin Sales Group5125 Kanazawa, Chino-shi, Nagano Pref. 391-0012, Japan (located in Chino Plant) TEL: +81-266-71-1441

Osaka Office

Osaka Sales Group No.1Osaka Glen Check Building, 1-34-15 Shinmachi, Nishi-ku, Osaka-shi, Osaka Pref. 550-0013, JapanTEL: +81-6-6541-1178



Building Utility Product GroupOsaka Glen Check Building, 1-34-15 Shinmachi, Nishi-ku, Osaka-shi, Osaka Pref. 550-0013, JapanTEL: +81-6-6541-1357

Air Conditioning and Instrumentation Planning GroupOsaka Glen Check Building, 1-34-15 Shinmachi, Nishi-ku, Osaka-shi, Osaka Pref. 550-0013, JapanTEL: +81-6-6533-0350

Chugoku BranchHiroshima Sales GroupNBF Hiroshima Tatemachi Building, 2-27 Tatemachi, Naka-ku, Hiroshima-shi,Hiroshima Pref. 730-0032, JapanTEL: +81-82-248-5903

Okayama Sales GroupMitsui Life Okayama Building, 8-29 Saiwaicho, Kita-ku, Okayama-shi, Okayama Pref. 700-0903, JapanTEL: +81-86-226-1607

Kyushu BranchKyushu Sales GroupZS Fukuoka Building, 3-4-2 Higashihie, Hakata-ku, Fukuoka-shi, Fukuoka Pref. 812-0007, Japan TEL: +81-92-431-7877

Project Division

Project Sales 1st Group1-10-1 Nakase, Mihama-ku, Chiba-shi,Chiba Pref. 261-8577, Japan TEL: +81-43-299-1719

Project Sales 2nd Group1-10-1 Nakase, Mihama-ku, Chiba-shi,Chiba Pref. 261-8577, JapanTEL: +81-43-299-1719

Control Valve Sales Group1-10-1 Nakase, Mihama-ku, Chiba-shi,Chiba Pref. 261-8577, Japan TEL: +81-43-299-1773

Water Supply Product Sales Department

Water Supply Product Sales Group No.11-10-1 Nakase, Mihama-ku, Chiba-shi,Chiba Pref. 261-8577, JapanTEL: +81-43-299-1760

Kita-Kanto OfficeSakamoto-2 Building, 3-306-1, Miyaharacho, Kita-ku Saitama-shi, Saitama Pref. 331-0812, Japan TEL: +81-48-651-5260

Yokohama OfficeMeiji Yasuda Life Radio Nippon Building, 5-85 Chojamachi, Naka-ku, Yokohama-shi,Kanagawa Pref. 231-0033, Japan TEL: +81-45-253-1095

Nishi-Tokyo OfficeALUB Tachikawa Building, 2-3-28, Nishikicho, Tachikawa-shi, Tokyo 190-0022, Japan TEL: +81-42-595-9241

Water Supply Product Sales Group - KansaiOsaka Glen Check Building, 1-34-15 Shinmachi, Nishi-ku, Osaka-shi, Osaka Pref. 550-0013, Japan TEL: +81-6-7636-1061

Market Development Department

1-10-1 Nakase, Mihama-ku, Chiba-shi,Chiba Pref. 261-8577, JapanTEL: +81-43-299-1741

Department of Overseas Operation

1-10-1 Nakase, Mihama-ku, Chiba-shi,Chiba Pref. 261-8577, JapanTEL: +81-43-299-1730

Production Bases and Training Center

Plants

KITZ Corporation Nagasaka Plant2040 Nagasaka Kamijo, Nagasakacho, Hokuto-shi, Yamanashi Pref. 408-8515, JapanTEL: +81-551-20-4100

KITZ Corporation Ina Plant7130 Higashiharuchika, Ina-shi, Nagano Pref. 399-4496, JapanTEL: +81-265-78-1111

KITZ Corporation Chino Plant5125 Kanazawa, Chino-shi,Nagano Pref. 391-0012, JapanTEL: +81-266-82-0170

Training Center

KITZ Training Center3332-1239 Kamisasao Shinohara, Kobuchisawa-cho, Hokuto-shi, Yamanashi Pref. 408-0041, JapanTEL: +81-551-36-3971

KITZ Group

Toyo Valve Co., Ltd. Onward Park Building, 3-10-5 Nihombashi, Chuo-ku, Tokyo 103-0027, JapanTEL: +81-3-6262-1652(Sales of valves and system equipment)

Shimizu Alloy Mfg. Co., Ltd.928 Higashinonamicho, Hikone-shi, Shiga Pref. 522-0027, JapanTEL: +81-749-23-3131(Manufacturing and sales of water works valves)

KITZ SCT CorporationOmorieki Higashiguchi Building, 1-5-1 Omori kita Ota-ku, Tokyo 143-0016, JapanTEL: +81-3-6404-2171(Manufacturing and sales of valves and fittings for semiconductor production facilities)

Miyoshi Valve Co., Ltd.1-10-1 Nakase, Mihama-ku, Chiba-shi,Chiba Pref. 261-8577, Japan TEL: +81-43-299-1734(Sales of valves for building utilities and freezing and refrigeration equipment)

YKV Corporation1-10-1 Nakase, Mihama-ku, Chiba-shi,Chiba Pref. 261-8577, Japan TEL: +81-43-299-1773(Manufacturing, sales and services of control valves for various applications)

KITZ Engineering Service Co., Ltd.1-7-59 Akanehama, Narashino-shi, Chiba Pref. 275-0024, JapanTEL: +81-47-452-0585(Maintenance services for valves)

KITZ Micro Filter Corporation2983 Shiga, Suwa-shi, Nagano Pref.392-0012, JapanTEL: +81-266-52-0002(Manufacturing and sales of fluid separation products for filters and related products)

KITZ Metal Works Corporation7377 Kobayakawa, Miyagawa, Chino-shi, Nagano Pref. 391-8555, JapanTEL: +81-266-79-3030(Manufacturing and sales of copper and processed products)

India

KITZ Corporation (India Liaison Office)805 Meadows, Sahar Plaza, Off Andheri Kurla Road, Andheri East, Mumbai 400 059, India TEL: +91-22-40154202

Korea

KITZ Corporation (Korea Liaison Office)10th Floor, Seoul Finance Center, 136, Sejong-daero, Jung-gu, Seoul, 100-768, Korea TEL: +82-2-6959-2450

U.A.E.

KITZ Corporation (Dubai Branch)6EA501 Dubai Airport Free Zone, P.O. Box 293545, Dubai-U.A.E. TEL: +971-(0)4-701-7524

Hotel Beniya Co., Ltd.2-7-21 Kogan-dori, Suwa-shi, Nagano Pref. 392-8577, JapanTEL: +81-266-57-1111(Operation of hotel and restaurants)

KITZ G&I Co., Ltd.2575 Nagasaka Kamijo, Nagasakacho, Hokuto-shi, Yamanashi Pref. 408-0021, JapanTEL: +81-551-32-5800(Insurance agency business and real estate buying and selling, brokerage and management)

Asia

KITZ Corporation of Asia Pacific Pte. Ltd. (Singapore)No.22 Pioneer Crescent, #03-06 West Park BizCentral, Singapore 628556TEL: +65-6339-0350 (Sales, marketing and distribution of valves)

KITZ Valve & Actuation Singapore Pte. Ltd.No.22 Pioneer Crescent, #03-06 West ParkBizCentral, Singapore 628556TEL: +65-6861-1833(Sales and maintenance of valves)

Nitta SC Plant

Marketing Bases, KITZ Corporation

KITZ Group

32

KITZ Corporation supports the public interest incorporated foundation Kitazawa Museum of Art as a part of social contribution activities.

Kitazawa Museum of Art1-13-28 Kogan-dori, Suwa-shi, Nagano Pref. 392-0027, JapanTEL: +81-266-58-6000

Strengthening Overseas Environmental Management

The KITZ Group formulated its “KITZ Global Vision 2020,” a Long-term

Management Plan, and places promotion of environment-responsive

business operations as a major item for strengthening its business

foundations. In the Environmental Mid-term Plan, we set out a target

for all 15 production bases in Japan and overseas to acquire ISO

14001 certification. We will continue to make efforts toward the

establishment of global environmental management.

KITZ Group Environmental Report Digest 2014

1.

KITZ Group companies aspire to become operations worthy of society’s confidence through the supply of environmentally friendly products and services and promotion of environment-responsive corporate activities.

2 0 1 4KITZ Group Environmental Report Digest

KITZ Group Principle of Environmental Activities

KITZ Group companies shall recognize environmental issues as an essential perspective of corporate management and every employee shall positively participate in the following activities.

Development and supply of environmentally friendly products and services

1. KITZ is dedicated to ensuring safety and health for all employees by complying with Japan’s Industrial Safety and Health Act and other associated laws and regulations as well as by adhering to internal rules and standards.

2. KITZ improves safety and health management by educating and training all employees with regard to the knowledge and skills needed for safety and health programs.

3. KITZ is dedicated to ensuring the safety of its machinery and equipment so that employees can do their jobs without concern.

4. KITZ reduces exposure to risk factors with the goal of eliminating potential sources of danger and harm to employees in workplaces.

5. KITZ maintains stimulating and pleasant workplaces that contribute to the mental and physical wellbeing of all employees.

2. Effective use of resources

3. Promotion of reduction, reuse and recycle of waste

4. Prevention of environmental contamination

KITZ Group Companies: Environmental Action Policy

KITZ Corporation Environmental and Safety Group

2040 Nagasaka Kamijo, Nagasakacho, Hokuto-shi, Yamanashi Prefecture 408-8515, JapanTEL: +81-551-20-4104 FAX: +81-551-20-4180Website: http://www.kitz.co.jp/english/about/environment.html

Calculation Standards (Results in FY2013)

Environmentalperformance index

INPU

T

Unit

Total energy input amount

Raw materialsinput amount

Use amount of water

GJ

GJ

Ton

m3

Ton

Calculation method

OU

TPU

T

Carb

on d

ioxi

de (C

O₂ )

em

issi

on a

mou

nts

Waste

CO2 emitted from the energy used in business activities (t)

* List of calculation method and emission coefficients in the calculation, report and publication system under the Law to Promote Global Warming Countermeasures

Bunker A: 2.76 kg-CO2/L Kerosene: 2.49 kg-CO2/L Light Oil: 2.60 kg-CO2/L

LPG: 3.00 kg-CO2/kg City Gas: 2.23 kg-CO2/m3

Osaka/Tobu/Kita/Keiyo/Keiwa/Chiba Gas: 2.29 kg-CO2/m3

Cold/Hot Water: 0.057 kg-CO2/MJ Gasoline: 2.32 kg-CO2/L

Tokyo Gas: 2.19 kg-CO2/m3

Bushu Gas: 2.24 kg-CO2/m3

Final disposed amount: consigned waste amount (t) x final disposal rate *(%)* General Waste: 10.9% quoted from the Ministry of the Environment, “Status of Discharge and Disposal of General Waste, etc. (Results in fiscal 2012)” Industrial Waste: figures obtained from intermediate waste disposal service responses

Dust amount (t) = dust density (g/m3N) x dry exhaust gas amount per unit hour (m3N/h) x annual operation hours (h/year) x 10-6

SOx (t) = sulfur oxide density (ppm) x dry exhaust gas amount per unit hour (m3N/h) x annual operation hours (h/year) x 64/22.4 x 10-9

NOx (t) = nitrogen oxide density (ppm) x dry exhaust gas amount per unit hour (m3N/h) x annual operation hours (h/year) x 46/22.4 x 10-9

Electric power (kg-CO2/kWh)

Tokyo Electric Power Company, Incorporated: 0.525

Kansai Electric Power Company Co., Ltd.: 0.514

Hokuriku Electric Power Company, Incorporated: 0.663

Chubu Electric Power Co., Inc.: 0.516

Chugoku Electric Power Co., Inc.: 0.738

Hokkaido Electric Power Co., Inc.: 0.688

Kyushu Electric Power Co., Inc.: 0.612Tohoku Electric Power Co., Inc.: 0.600

Business activities

Energy amount consumed in business activities (GJ)

Amount of cold and hot water, the heat source, accepted from local cooling and heating system for ventilation use at KITZ Head Office Building (Makuhari New City, Chiba)

Annual use amount of raw materials directly used for manufacturing of products (t)

Annual use amount of clean water and underground water (m3)

* Source: Energy supply and demand results in 2012 (final) (published on April 15, 2014) Resources and Energy Agency

Electricity: 3.6MJ/kWh Bunker A: 39.8 MJ/L Kerosene: 36.7MJ/L Light Oil: 37.9 MJ/L LPG: 50.8MJ/kg City Gas: 44.8 MJ/m3 Gasoline: 34.6MJ/L

∑[Each energy annual use amount x each unit calorific value] x 10-3

Target Period: Target period was FY2013 (April 1, 2013 ~ March 31, 2014) and the results for the period are reported.Scope of Reporting: KITZ Corporation and seven group companies in Japan (see website).Policy and Standards for Collection and Reporting of Environmental Performance Information: In compliance with environment-related laws and regulations, the report is published in accordance with the “KITZ Group Environmental Philosophy,” the “KITZ Group Environmental Action Guidelines,” the “KITZ Group Environment, Safety and

Health Performance Data Calculation Guidelines” and other environment-related internal regulations.Referenced Guidelines:The Ministry of the Environment, Environmental Report Guidelines (2012 Edition)The Ministry of the Environment, Environmental Accounting Guidebook (2005 Edition)Published: July 2014Next publication: July 2015 (to be issued every year)

■ Business Offices That Have Acquired Integrated ISO 14001 Certification

Name of business office

■ Status of Acquisition of ISO 14001 Certification (Overseas)

Date of acquisition

(1) KITZ Corporation of Taiwan

(2) KITZ (Thailand) Ltd. Bangplee Plant

(3) KITZ Corporation of Kunshan

(4) KITZ Corporation of Jiangsu Kunshan

(5) KITZ (Thailand) Ltd. Amatanakorn Plant

(6) KITZ Corporation of Europe, S.A.

November 2000

December 2010

December 2010

April 2011

February 2012

May 2012





KITZ Metal Works Corporation

KITZ Micro Filter Corporation



Toyo Valve Co., Ltd. Koshin Sales Office

Take Preventive Steps and Improve Safety Awareness Through Group-wide Safety and Health Programs

KITZ implements measures from the two perspectives of coordinated programs and thorough management by line managers (bottom-up

approach via small group activities), with emphasis placed on changing the mindset of each person to improve safety awareness and reform

workplace culture.

KITZ has formulated the following key actions as measures for employee safety and health with the aims of taking preventive steps for safety

and improving safety awareness.

Office safety activities

Take preventive steps Improve safety awareness

KITZ Group Safety and Health Fundamental Philosophy

KITZ Group Safety and Health Fundamental Policies

KITZ places the highest priority on safety and health in all of its activities based on the principle of showing respect for people. Group companies conduct extensive safety and health programs with the goal of zero accident.

KITZ Group Safety and Health Activities

Develop a management system

Create frameworkMake it visible

Develop a management system (comply with safety and health related laws and regulations)Implement safety measures for machines, equipment and people (prevent similar accidents)Create workplace culture (promote zero accidents)

Implement safety measures for machines, equipment and people

Measures for equipment and environmentMeasures for people

Create workplace culture

Activate small group activitiesIntroduce enlightenment programs

6 15

Targets of Environmental Issues in Long-Range Management Projections

Environmental Management Agenda Needed to Accomplish Targets

1. Enhancement of Environmental Management System

2. Reduction in Environmental Impact

3. Compliance with Environment-Related Laws and Regulations

Items to control:

Enhancement of corporate business infrastructure(Group-wide environment-responsive management)

Enhancing management system

Risk prevention Cost reductionBalanced

CO₂ emissions


Forcused subject

Category Category Numerical targets (Unit) Results inFY2012

Results inFY2013

FY2013 lessFY2012Main actions

Details of effects Amount

Capitalinvestment Expenditures

Enhancement ofEnvironmentalManagement

System

1. Strengthening environmental management system

2. Establishment of a recycling-oriented society

3. Reduce hazardous chemical substances

4. Prevent global warming

5. Visualization of environmental risk and responses

Cost for premises

Pollution control

Global environmentprotection

Resourcecirculation

66,528

116,078

560

235

Total costs Costs for environmental conservation Total operationcosts (A)

Total capital investment

Total R&D expenditures

2,590,964

1,659,928

3.8% against total operation cost (A)

7.0% against total operation cost (A)

Earned from recycling waste and used products

Saved by energy saving activities

Reduced recycling expenditures

Saved by waste reduction

Consumed totalenergies (GJ)

Consumed PRTRmaterials (ton)

Consumed undergroundwater (m3)

Consumed cleanwater (m3)

Greenhouse gasemission (ton-CO2)

Discharged or displacedchemicals (ton)

Discharged total waste(ton)

704,892

4,872

346,197

602,742

76,227

306

8,393

519,427

5,091

135,938

408,660

59,674

358

9,063

185,466

-219

210,259

194,082

16,553

(52)

(671)

356,250

109,741

197,045

22,693

685,729

Product recycling

Administrative duties

Research anddevelopment

Social activities

Damaged environmentrecovery

Other costs

TotalProfits

Savedexpenditures

Total

(1) Legal compliance

Sales consumption units 0.32t/¥100 million

Sales consumption units 631.57GJ/¥100 million

Sales consumption units 66.15t-CO2/¥100 million

(*) KITZ and domestic group companies (except for sales offices)

(Thousand of yen)

(Thousands of yen)

0.26t/¥100 million (*)

603.80GJ/¥100 million (*)

65.29t-CO2/¥100 million (*)

Reduction inEnvironmental

Impact

Compliance withEnvironment-Related Laws

and Regulations

Actions planned Target for FY2013 Results in FY2013

Environmental Target and Results in FY2013

Environmental Data

We introduced “promotion of Group environment-responsive business operations” in the Second Mid-term Management Plan (FY2013 – FY2015) to promote environmental activities.

Environmental Accounting in FY2013

Overall Image of Environmental Impact

Scope of compilation is KITZ Corporation (Head Office, Nagasaka, Ina, Chino), KITZ Metal Works Corporation, KITZ Micro Filter Corporation, KITZ SCT Corporation, Shimizu Alloy Mfg. Co., Ltd., KITZ Engineering Service Co., Ltd., KITZ Wellness Co.,Ltd. and Hotel Beniya Co., Ltd.

Effects related with input resources

Effects related with output waste and pollutants

INPUT in FY2013

KITZ GROUP

Major Energies Manufacturers

ElectricityPurchased electric power Solar power generationCity gasBunker ALPGKeroseneCold and hot water

(1,000 kWh)(1,000 kWh)

(1,000 m3)(kl)(t)

(kl)(GJ)

98,3584610

9041,829

6823,223

(Sales offices)

4040

1926

Servicecompanies

14,5680

2,261349172143987

Water

Clean waterUnderground water

(1,000 m3)(1,000 m3)

138276

10

208327

Main Raw Materials Manufacturers

LeadNickelManganeseChromeCopperZinc

(t)(t)(t)(t)(t)(t)

(t)(t)(t)

2,099441

1,439613

42,10721,436

Main Auxiliary Materials

Sand for cores and castingsPaint and thinnerOil solution

5,472184212

OUTPUT in FY2013

Emission in Air

Development and Design Procurement Production Logistics Sales

Manufacturers

CO2

DustNOxSOx

Industrial wasteNon-industrial wasteValuable substancesFinal disposal

AirWastePublic water

(t)(t)(t)(t)

(t)(t)(t)(t)

61,4604.54.25.0

(Sales offices)

523

Servicecompanies

14,7670.39.36.5

Discharge of Waste Manufacturers

7,954189

5,733304

(Sales offices)

07

Servicecompanies

69180

3935

Discharge of PRTRTarget Chemicals

(t)(t)(t)

692370.1

Energy Consumption Amount (GJ)

(Base Year) FY2005

FY2011 FY2012 FY2013

(Base Year) FY2005

FY2011 FY2012 FY2013

(Base Year) FY2005

FY2011 FY2012 FY2013

Sales Consumption Units (GJ/Sales (¥100 million))

Energy Consumption (GJ)

800,000

600,000

200,000

0

600

450

400,000 300

150

0

513,307

191,228

7,332

191,690

6,122

511,945 519,427

Industrial Waste Amounts (t)

Manufacturers (except for sales offices)

Consumption units at manufacturers (except for sales offices)

(t)

Sales Output (t/Sales (¥100 million))

Discharge of Industrial Waste (ton) Consumption of PRTR Target Chemicals (tons of top 5 items)

15,000

10,000

5,000

0

12

8

4

0

8,974

9.858.47 8.58

2,099

1,439

613

441

312112 97 0 69 01

8,526 8,8437.40

7,954

CO2 Emission Amounts (t-CO2)

Lead

Manganese

Chrome

Nickel (metal)

Chrome oxide

Sales Output (t-CO2/Sales (¥100 million))

CO2 Emission (ton- CO2)

100,000

75,000

50,000

25,000

0

60

45

30

15

0

47,752

52.4 53.057.9

574

53,304

14,80513,446512

59,674

57.2

14,767523

61,460

0 500 1,000 1,500 2,5002,000

* PRTR target substances, for which annual handling amounts are less than 1t and content is less than 1%, are also compiled.

We aim to promote environment-responsive business operations across our entire groupwhile simultaneously pursuing risk prevention and cost reduction

The KITZ Group has designated “Group-wide promotion of environmentally conscious management” as one measure for strengthening our business foundation to realize our slogan “Evolution to become a fully global company,” which is articulated in the KITZ Global Vision 2020, a Long-term Management Plan. Based on this, we have set three targets of “Enhancement of Environmental Management System,” “Reduction in Environmental Impact” and “Compliance with Environment-Related Laws and Regulations.”

We have completed certification for ISO 14001 at all our production plants (seven locations) in Japan and will now expand efforts for obtaining ISO 14001 certification to our overseas bases. We will strive to complete the acquisition of ISO 14001 certification in the near future at all overseas manufacturing bases with the aim of building an environment management system as a truly global company.

Both CO2 emissions and waste discharge amount in FY2013 have been on the rise compared with the previous fiscal year. Conversely, the amount of water resource use and industrial waste emission has significantly decreased. We will continue to make concerted efforts as a Group to engage in activities to reduce environmental impact.

The KITZ Group will work in unison to undertake environment-responsive management to attain these three targets based on its policy of achieving a balance between risk prevention and cost reduction.

(1) Change to integrated ISO 14001(7 domestic bases).

(2) Implement environmental results management at overseas production bases (energy, waste materials, others).

(1) Building the basic structure for group-wide environmental management system

(1) Enhanced structure for gathering information about law revisions and made responses.

(2) Established management system for PCB waste materials at the KITZ Group in Japan

Responded to revised Water Quality Pollution Control Act. Completed survey of current situation as well as of response preparations.

Completed disposal of 68 units of high-concentration PCB.

(1) Completed the Group review in October 2013.

(2) KITZ (Thailand) Ltd. begins operation.

563.2508.8 504.3

183,970

5,911

520,922

484.9

Enhancement of Environmental Management System

We have set the target of reducing consumption of energy and water used for our business activities and reducing the discharge of carbon dioxide, industrial waste and chemical pollutants from our business operations. We will effectively use finite resources while extensively eliminating waste to reduce environmental impacts in terms of total volume and basic units.

Reduction in Environmental Impact

Besides complying with various environment-related laws and regulations for addressing environmental problems amid a tightening of restrictions worldwide, including in Japan, Europe, Asia and the United States, we also engage in activities to eliminate all environmental risk associated with our business activities.

Industrial waste discharge

Water consumption

Streamlining action processes Reducing environmentallyhazardous substances

Group activitiesApplication of management system

Building the basic structureCultivation of human resourcesVisualization

Combating global warmingCommon issues (handling waste and water)Care for local communitiesPrevention of future risk issues

Energy consumption

Final disposal of waste

Discharge of PRTR target chemicals

Compliance with Environment-Related Laws and Regulations



Sales consumption units 991.43 m3/¥100 million

7.19t/¥100 million (*)

0.29t/¥100 million (*)

812.84 m3/¥100 million (*)

Service companies (data compiled from FY2008)

Sales offices of manufacturers (data compiled from FY2009)

Environmental performance points

Environmental Conservation Costs Environmental Conservation Effects

Economic Effects of Environmental Conservation Activities

Brea

kdow

n

Introduction, purchasing and maintenance of facilities

Introduction of facilities and equipment

Reduction, recycling and outsourced disposal of waste

Collection and recycling of used goods

ISO-related works, environmental measurement and disclosure of environmental informationDevelopment of lead-free and other environmentally friendly products

Promotion of greening activitiesPurification of underground water

0

117,027

0

674,228

117,027

38,293

78,734

0

0

0

0

0

0

482,233

178,880

89,093

214,260

8,594

(1) Reducing discharged waste

(2) Reducing finally disposed waste

(2) PCB

(3) Reducing consumed water resource

(4) Reducing discharged PRTR Class-1 chemicals

(5) Reducing energy consumption

(6) Reducing CO2 emission

ISO 14001 certification and control of environmental issues for overseas manufacturing operations

3 42

Strengthening Overseas Environmental Management

The KITZ Group formulated its “KITZ Global Vision 2020,” a Long-term

Management Plan, and places promotion of environment-responsive

business operations as a major item for strengthening its business

foundations. In the Environmental Mid-term Plan, we set out a target

for all 15 production bases in Japan and overseas to acquire ISO

14001 certification. We will continue to make efforts toward the

establishment of global environmental management.


1.

KITZ Group companies aspire to become operations worthy of society’s confidence through the supply of environmentally friendly products and services and promotion of environment-responsive corporate activities.

2 0 1 4KITZ Group Environmental Report Digest

KITZ Group Principle of Environmental Activities

KITZ Group companies shall recognize environmental issues as an essential perspective of corporate management and every employee shall positively participate in the following activities.

Development and supply of environmentally friendly products and services

1. KITZ is dedicated to ensuring safety and health for all employees by complying with Japan’s Industrial Safety and Health Act and other associated laws and regulations as well as by adhering to internal rules and standards.

2. KITZ improves safety and health management by educating and training all employees with regard to the knowledge and skills needed for safety and health programs.

3. KITZ is dedicated to ensuring the safety of its machinery and equipment so that employees can do their jobs without concern.

4. KITZ reduces exposure to risk factors with the goal of eliminating potential sources of danger and harm to employees in workplaces.

5. KITZ maintains stimulating and pleasant workplaces that contribute to the mental and physical wellbeing of all employees.

2. Effective use of resources

3. Promotion of reduction, reuse and recycle of waste

4. Prevention of environmental contamination

KITZ Group Companies: Environmental Action Policy

KITZ Corporation Environmental and Safety Group

2040 Nagasaka Kamijo, Nagasakacho, Hokuto-shi, Yamanashi Prefecture 408-8515, JapanTEL: +81-551-20-4104 FAX: +81-551-20-4180Website: http://www.kitz.co.jp/english/about/environment.html

Calculation Standards (Results in FY2013)

Environmentalperformance index

INPU

T

Unit

Total energy input amount

Raw materialsinput amount

Use amount of water

GJ

GJ

Ton

m3

Ton

Calculation method

OU

TPU

T

Carb

on d

ioxi

de (C

O₂ )

em

issi

on a

mou

nts

Waste

CO2 emitted from the energy used in business activities (t)

* List of calculation method and emission coefficients in the calculation, report and publication system under the Law to Promote Global Warming Countermeasures

Bunker A: 2.76 kg-CO2/L Kerosene: 2.49 kg-CO2/L Light Oil: 2.60 kg-CO2/L

LPG: 3.00 kg-CO2/kg City Gas: 2.23 kg-CO2/m3

Osaka/Tobu/Kita/Keiyo/Keiwa/Chiba Gas: 2.29 kg-CO2/m3

Cold/Hot Water: 0.057 kg-CO2/MJ Gasoline: 2.32 kg-CO2/L

Tokyo Gas: 2.19 kg-CO2/m3

Bushu Gas: 2.24 kg-CO2/m3

Final disposed amount: consigned waste amount (t) x final disposal rate *(%)* General Waste: 10.9% quoted from the Ministry of the Environment, “Status of Discharge and Disposal of General Waste, etc. (Results in fiscal 2012)” Industrial Waste: figures obtained from intermediate waste disposal service responses

Dust amount (t) = dust density (g/m3N) x dry exhaust gas amount per unit hour (m3N/h) x annual operation hours (h/year) x 10-6

SOx (t) = sulfur oxide density (ppm) x dry exhaust gas amount per unit hour (m3N/h) x annual operation hours (h/year) x 64/22.4 x 10-9

NOx (t) = nitrogen oxide density (ppm) x dry exhaust gas amount per unit hour (m3N/h) x annual operation hours (h/year) x 46/22.4 x 10-9

Electric power (kg-CO2/kWh)

Tokyo Electric Power Company, Incorporated: 0.525

Kansai Electric Power Company Co., Ltd.: 0.514

Hokuriku Electric Power Company, Incorporated: 0.663

Chubu Electric Power Co., Inc.: 0.516

Chugoku Electric Power Co., Inc.: 0.738

Hokkaido Electric Power Co., Inc.: 0.688

Kyushu Electric Power Co., Inc.: 0.612Tohoku Electric Power Co., Inc.: 0.600

Business activities

Energy amount consumed in business activities (GJ)

Amount of cold and hot water, the heat source, accepted from local cooling and heating system for ventilation use at KITZ Head Office Building (Makuhari New City, Chiba)

Annual use amount of raw materials directly used for manufacturing of products (t)

Annual use amount of clean water and underground water (m3)

* Source: Energy supply and demand results in 2012 (final) (published on April 15, 2014) Resources and Energy Agency

Electricity: 3.6MJ/kWh Bunker A: 39.8 MJ/L Kerosene: 36.7MJ/L Light Oil: 37.9 MJ/L LPG: 50.8MJ/kg City Gas: 44.8 MJ/m3 Gasoline: 34.6MJ/L

∑[Each energy annual use amount x each unit calorific value] x 10-3

Target Period: Target period was FY2013 (April 1, 2013 ~ March 31, 2014) and the results for the period are reported.Scope of Reporting: KITZ Corporation and seven group companies in Japan (see website).Policy and Standards for Collection and Reporting of Environmental Performance Information: In compliance with environment-related laws and regulations, the report is published in accordance with the “KITZ Group Environmental Philosophy,” the “KITZ Group Environmental Action Guidelines,” the “KITZ Group Environment, Safety and

Health Performance Data Calculation Guidelines” and other environment-related internal regulations.Referenced Guidelines:The Ministry of the Environment, Environmental Report Guidelines (2012 Edition)The Ministry of the Environment, Environmental Accounting Guidebook (2005 Edition)Published: July 2014Next publication: July 2015 (to be issued every year)

■ Business Offices That Have Acquired Integrated ISO 14001 Certification


■ Status of Acquisition of ISO 14001 Certification (Overseas)

Date of acquisition

(1) KITZ Corporation of Taiwan

(2) KITZ (Thailand) Ltd. Bangplee Plant

(3) KITZ Corporation of Kunshan

(4) KITZ Corporation of Jiangsu Kunshan

(5) KITZ (Thailand) Ltd. Amatanakorn Plant

(6) KITZ Corporation of Europe, S.A.

November 2000

December 2010

December 2010

April 2011

February 2012

May 2012





KITZ Metal Works Corporation

KITZ Micro Filter Corporation



Toyo Valve Co., Ltd. Koshin Sales Office

Take Preventive Steps and Improve Safety Awareness Through Group-wide Safety and Health Programs

KITZ implements measures from the two perspectives of coordinated programs and thorough management by line managers (bottom-up

approach via small group activities), with emphasis placed on changing the mindset of each person to improve safety awareness and reform

workplace culture.

KITZ has formulated the following key actions as measures for employee safety and health with the aims of taking preventive steps for safety

and improving safety awareness.

Office safety activities

Take preventive steps Improve safety awareness

KITZ Group Safety and Health Fundamental Philosophy

KITZ Group Safety and Health Fundamental Policies

KITZ places the highest priority on safety and health in all of its activities based on the principle of showing respect for people. Group companies conduct extensive safety and health programs with the goal of zero accident.

KITZ Group Safety and Health Activities

Develop a management system

Create frameworkMake it visible

Develop a management system (comply with safety and health related laws and regulations)Implement safety measures for machines, equipment and people (prevent similar accidents)Create workplace culture (promote zero accidents)

Implement safety measures for machines, equipment and people

Measures for equipment and environmentMeasures for people

Create workplace culture

Activate small group activitiesIntroduce enlightenment programs

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management structure and corporate data 2014 - kitz · toyo metals co., ltd., was established and...

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