*FY2017 results except for accumulated amount

Financial capital

Manufactured capital

Human capital

Intellectual capital

Social/relationship capital

Natural capital

• Maintain a solid financial foundation• Net assets of 110.6 billion yen• Equity ratio of 48.5%

• Hand down technology to the nextgeneration

• Enhance technological platformsusing IT tools

• Accumulate technologies andknow-how overseas

• Accumulated overseas sales of 1.9 trillion yen

• Reduce environmental impact• Efficiently utilize resources/energy• Use “air,” a natural resource

• Maintain a solid global network• 39 consolidated subsidiaries in Japan and overseas

• Abundant transactions 1,942 clients and 1,850 subcontractors

• Respond to customer needs byleveraging R&D facilities

• Capital investment of 3.8 billion yen• 6 R&D facilities in Japan and overseas

• Generate customer satisfaction• Advancement of overseas

local staff• Ratio of overseas employees: 65%

• Variety of education andtraining

Environment surrounding Taikisha Capital invested Provision of valueBusiness activities

Business opportunitiesResponse to climate changeEfficient use of resources and energyDevelopment of industries and

technological innovationContribution to creating sustainable

cities and communitiesUse of IoT/AI and technological

innovations toward automation

Risk factorsFluctuations in private-sector capital

investmentRisks involved in overseas business

operationsRisks involved in intensified price

competitionFluctuations in material pricesNatural disasters/accidents Internal issuesWork style reform and human resource

developmentBuilding a solid governance systemOptimum quality controlStakeholder engagement

Financial capital

Manufacturedcapital

Human capital

Intellectual capital

Social/relationship capital

Natural capital

Optim

al allocation of capital invested

Green TechnologySystem Division

Provider ofsolutions and

ingenuity

105 years of trustsince foundation

Environment-responsive

technologies

Paint FinishingSystem Division

Solid globalnetwork

Overseas operationsspanning 8 decades

One and onlypainting business

P07-08

Clients

Shareholders

Employees andtheir families

Business partners

Communities/societies

Supervisoryauthorities

Globalenvironment

Practicing“Customers First”At Taikisha, “Customers” is broadly interpreted as all stakeholders surrounding the company. Practicing the Mission Statement “Customers First” is central to Taikisha’s business as it generates benefits and happiness for all such stakeholders.

ValueCreationFeature

P23

Technology × Human Resources

3Work style reform through employee education and active utilization of ITManagement Aimed at Achieving Growth by Nurturing and Utilizing People

ValueCreationFeature

P21

Technology × Environment

2Leap forward on wings—Expansion into the aircraft paint finishing system businessFirst Regional Jet Aircraft Produced in Japan “MRJ”

For Taikisha’s specific “value creation” initiatives, please see the special features on P19–24.

ValueCreationFeature

P19

Technology × Environment

1Air control supporting safe manufacture of pharmaceuticalsAir-Conditioning Systems in the Pharmaceuticals Manufacturing Environment

Providing the optimalconditions as an engineer

environment andof energy, air and water

Capitalize on opportunities through business and manage risk factors

Technology developmentand design Order receiving Procurement Construction Operation, management

and after-sales services

Value chain

Governance

Quality

P29-36

P51-52

Environment

Labor practices

P37-48

P53-56

Address internal issues based on ourMateriality

P25-26

CSR activities that supportsustainable growth

*FY2017 results except for accumulated amount

Financial capital

Manufactured capital

Human capital

Intellectual capital

Social/relationship capital

Natural capital

• Maintain a solid financial foundation• Net assets of 110.6 billion yen• Equity ratio of 48.5%

• Hand down technology to the nextgeneration

• Enhance technological platformsusing IT tools

• Accumulate technologies andknow-how overseas

• Accumulated overseas sales of 1.9 trillion yen

• Reduce environmental impact• Efficiently utilize resources/energy• Use “air,” a natural resource

• Maintain a solid global network• 39 consolidated subsidiaries in Japan and overseas

• Abundant transactions 1,942 clients and 1,850 subcontractors

• Respond to customer needs byleveraging R&D facilities

• Capital investment of 3.8 billion yen• 6 R&D facilities in Japan and overseas

• Generate customer satisfaction• Advancement of overseas

local staff• Ratio of overseas employees: 65%

• Variety of education andtraining

Environment surrounding Taikisha Capital invested Provision of valueBusiness activities

Business opportunitiesResponse to climate changeEfficient use of resources and energyDevelopment of industries and

technological innovationContribution to creating sustainable

cities and communitiesUse of IoT/AI and technological

innovations toward automation

Risk factorsFluctuations in private-sector capital

investmentRisks involved in overseas business

operationsRisks involved in intensified price

competitionFluctuations in material pricesNatural disasters/accidents Internal issuesWork style reform and human resource

developmentBuilding a solid governance systemOptimum quality controlStakeholder engagement

Financial capital

Manufacturedcapital

Human capital

Intellectual capital

Social/relationship capital

Natural capital

Optim

al allocation of capital invested

Green TechnologySystem Division

Provider ofsolutions and

ingenuity

105 years of trustsince foundation

Environment-responsive

technologies

Paint FinishingSystem Division

Solid globalnetwork

Overseas operationsspanning 8 decades

One and onlypainting business

P07-08

Clients

Shareholders

Employees andtheir families

Business partners

Communities/societies

Supervisoryauthorities

Globalenvironment

Practicing“Customers First”At Taikisha, “Customers” is broadly interpreted as all stakeholders surrounding the company. Practicing the Mission Statement “Customers First” is central to Taikisha’s business as it generates benefits and happiness for all such stakeholders.

ValueCreationFeature

P23

Technology × Human Resources

3Work style reform through employee education and active utilization of ITManagement Aimed at Achieving Growth by Nurturing and Utilizing People

ValueCreationFeature

P21

Technology × Environment

2Leap forward on wings—Expansion into the aircraft paint finishing system businessFirst Regional Jet Aircraft Produced in Japan “MRJ”

For Taikisha’s specific “value creation” initiatives, please see the special features on P19–24.

ValueCreationFeature

P19

Technology × Environment

1Air control supporting safe manufacture of pharmaceuticalsAir-Conditioning Systems in the Pharmaceuticals Manufacturing Environment

Providing the optimalconditions as an engineer

environment andof energy, air and water

Capitalize on opportunities through business and manage risk factors

Technology developmentand design Order receiving Procurement Construction Operation, management

and after-sales services

Value chain

Governance

Quality

P29-36

P51-52

Environment

Labor practices

P37-48

P53-56

Address internal issues based on ourMateriality

P25-26

CSR activities that supportsustainable growth

Taikisha’s Mission Statement “Customers First” refers to the spirit of earning the ongoing trust of stakeholders (society in general).

Since the foundation of Taikisha in 1913, this guiding principle has underpinned its efforts and was formulated anew in 1970 as the

“Customers First” Mission Statement. Based on this mission statement, Taikisha will continue to create new value for others while

striving to achieve its sustainable growth.

Value Creation Process

Top Managem

ent’sM

essageCorporate O

verviewTop to Top Dialogue

Materiality

Key Measures and

Progress of ActivitiesG

overnanceEnvironm

entContributions to Society

Value Creation Feature

17 18Taikisha Ltd. CSR Report 2018 Taikisha Ltd. CSR Report 2018

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