Corporate Social Responsibility (CSR) / Environmental and Social Report 2013

Capitalizing on our operating activities as “The Gas Professionals” to help create a safe, secure society

Implementing a new management policy aimed at enhancing business growth and corporate value

The global economy remained fragile in fiscal year 2013, ended March 31, 2013. In Japan, stagnation persisted, reflecting a strong yen and continuing deflation. Having recognized the need to ensure our ability to move quickly and accurately to further strengthen our domestic operating foundation and bolster operating results in our existing businesses, effective October 1, 2012, we installed a new management team with myself as president. Despite ambitious stimulus measures implemented by the government and the Bank of Japan in the year since, which have yielded signs of an upturn in some areas of the manufacturing sector, notably exports, a recovery in the manufacturing sector as a whole is expected to take some time. The situation has been exacerbated by hints of a slowdown in key emerging economies, as a result of which we continue to operate in a challenging environment. Nonetheless, we remain firm in our resolve to achieve the profit target we set for the Company in the period under review.

When I took the reins as president of Taiyo Nippon Sanso in October 2012, I set forth a new policy that outlines key priorities for the Company pertaining to safety management, product quality, product safety, the environment and technological risk management relating to intellectual property. Going forward, we will make every effort to ensure this policy is understood fully by all employees and implemented effectively, confident that in doing so we will remain a company deserving of society's trust and capable of achieving sound business growth and steadily increasing corporate value.

President

Shinji Tanabe

President

Evolving as a company that leverages gas technologies to address crucial challenges

In the years ahead, we will further strengthen our efforts to leverage our distinctive gas technologies, accumulated over many years as a supplier of industrial gases, to develop products—including hydrogen stations for fuel cell vehicles (FCVs) and turbo refrigerators for cooling superconducting power equipment—that help reduce environmental impact and technologies that contribute to energy conservation and improved production efficiency. We will also broaden the practical application of our corporate philosophy—"Market-driven collaborative innovation: improving the future through gases"—with the aim of addressing crucial challenges facing society today in such areas as the environment, resources and energy, and healthcare.

To ensure continued growth for the Taiyo Nippon Sanso Group, management and staff pledge to work as one to promote sound business practices, thereby earning the trust of our stakeholders worldwide and of society at large. It is our hope that this report on the Taiyo Nippon Sanso Group's environmental and social initiatives will prove both informative and of interest.

President's Basic Policy on Technological Risk Management

To fulfill the responsibilities implied in our corporate slogan, "The Gas Professionals," we recognize that we have an obligation to ensure stringent compliance with pertinent laws and regulations and to prioritize the management of key technological risks, i.e., risks related to security, product quality, product safety, the environment and intellectual property. Accordingly, we have formulated the President's Basic Policy on Technological Risk Management.

We will continue taking steps to minimize such risks and to enhance customer satisfaction across all areas of our operations. These include ensuring the President's Basic Policy on Technological Risk Management is fully understood and applied by every Taiyo Nippon Sanso Group employee, as well as formulating and implementing a Groupwide technological risk management system and effective business continuity planning (BCP) to guarantee critical operations are maintained in the event of a disruption caused by an earthquake or other major disaster. At the same time, we will work to contribute to greater public safety and environmental preservation, thereby earning the trust of society at large, to ensure the sound growth of our businesses and build greater corporate value.

Security: Implement decisive, practical measures to ensure the safety of our operations, in line with our belief that selling gas is commensurate with selling safety and peace of mind.
Product quality: Accurately grasp the increasingly sophisticated and diverse customer needs and social imperatives and respond by ensuring optimum product quality.
Product safety: Minimize safety risks at all stages of the product life cycle to ensure the safety and security of the products we supply.
Environment: Take steps to reduce the negative impact of our operations on the global environment and to prevent pollution.
Intellectual property: Obtain and make use of intellectual property rights as necessary to preclude competition with other companies.

(As of October 1, 2012)

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 all 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.