Corporate Social Responsibility (CSR) / A Message from the President

Embarking on Our Second Century as "The Gas Professionals"

Allow me to begin by remembering the thousands of victims of the Great East Japan Earthquake of March 11, 2011, and by once again extending our deepest sympathies to the many thousands who were affected by this devastating tragedy. We continue to keep you in our thoughts as you work to recover and rebuild.

Our production and logistics facilities in Miyagi, Aomori and other prefectures in the Tohoku and Kanto regions sustained extensive damage. However, thanks to the understanding and cooperation of customers, freight forwarders and other relevant parties, we were able to prioritize supplies of crucial medical-use oxygen and nitrogen, the latter being indispensable to process safety at customers' manufacturing facilities and plant operations. In the months since, we have worked to assist victims of the disaster and participated in relief efforts to the best of our ability, including through monetary donations, in line with our commitment to fulfill our duty to society as a responsible corporate citizen. Going forward, we will continue working to provide assistance to the areas devastated by this catastrophe and to ensure safe, stable supplies of industrial gases.

A Century of Stakeholder Support

Established in October 1910 as Nippon Sanso Ltd., a joint stock company, Taiyo Nippon Sanso celebrated its centennial anniversary a year ago. This remarkable achievement is due in great part to the support, consideration and cooperation over the years of our many stakeholders, which include customers, shareholders, clients and employees. Since developing Japan's first oxygen gas generator in 1934, we have worked to advance cryogenic, high-pressure, separation, vacuum and gas control technologies, particularly in the development of air separation units, and support the evolution of industry. In subsequent years, we expanded our presence overseas, beginning with Singapore and the United States in the early 1980s, setting up bases in China, Southeast Asia and the United States and embarking on a drive to become a global corporation with the aim of evolving into the first Asian-born industrial gas major.

In the years ahead, we will step up efforts to leverage our distinctive technological capabilities to promote the development of new environment-friendly technologies for the use of industrial gases in manufacturing that contribute to energy conservation, improved production efficiency and the progress of hydrogen fuel cells, solar cells and other forms of clean energy. Through such efforts, we will strive continuously to contribute to a cleaner, safer world.

Earning a Reputation for Reliability as "The Gas Professionals"

To fulfill the responsibilities implied in our corporate slogan, "The Gas Professionals," and in line with our belief that selling gas is commensurate with selling safety and peace of mind, we continue to expand our operations in a manner that reflects five key priorities:

  1. Ensure stringent compliance
  2. Enhance safety management
  3. Guarantee superior product quality
  4. Contribute to a healthy environment
  5. Make effective use of intellectual property

In fiscal year 2012, we embarked on a new medium-term business plan that will guide our efforts over a three-year period. Commencing as it does in the first year of our second century in business, the new plan was formulated with the aim of creating a solid foundation for growth over the next 50-100 years. The plan's basic policy is to carry forward the core strategies of our previous medium-term business plan. At the same time, the plan seeks to improve compliance, reinforce safety and quality control, enhance management efficiency, fortify R&D and promote ongoing, ambitious investments, thereby accelerating our global expansion and strengthening our business fundamentals.

In these and all our efforts we look forward to continuing to earn the support of stakeholders. It is our hope that this report on environmental and social initiatives undertaken as part of the Taiyo Nippon Sanso Group's corporate responsibility program will prove both informative and entertaining.

In closing, I would be remiss if I did not address the events of May 2011. That month, Japan's Fair Trade Commission took the decision to issue a cease-and-desist order against Taiyo Nippon Sanso regarding an alleged pricing cartel for air separator gases (liquid oxygen, liquid nitrogen and liquid argon), along with a surcharge payment order, i.e., a fine. Recognizing the gravity of this occurrence, we pledge to do everything in our power to prevent a recurrence, as well as to regain the trust of all stakeholders.

Yasunobu Kawaguchi
President

Corporate Philosophy "Market-driven collaborative innovation:improving the future through gases"
Corporate Guidelines Progressive United in creativity Forward looking

We pledge to listen to the views of stakeholders and to contribute—through both our gas technologies and collaboration with partners in other industries—to the creation of a spiritually and materially wealthy society.

Corporate Slogan The Gas Professionals

Striving tirelessly to fulfill our potential as industrial gas professionals and as the global leader in this field in terms of both market position and expertise

Corporate Logo
TAIYO NIPPON SANSO The Gas Professionals

Taiyo Nippon Sanso's corporate logo represents the seamless integration of state-of-the-art technology and nature, as well as the Company's business domain, founded on its advanced technologies for controlling oxygen, nitrogen, argon and other gases. The logo also evokes the Company's resolve to achieve growth through superior quality and transparency and to ensure a future that is clean, safe and healthy.