Corporate Social Responsibility (CSR) / Environmental and Social Report 2015

Ensuring a Safe and Stable Supply of Industrial Gases

Strengthening Efforts Across All Processes to Ensure Safe and Stable Supplies

We use various modes of transport to deliver gases to customers in a broad range of industries, depending on the characteristics of the gases themselves and the particular needs of the customer. To ensure a safe, stable supply, we are stepping up efforts at all Taiyo Nippon Sanso Group production and supply facilities-as well as at the facilities of official dealers (“partner companies”) and at our customers’ premises-to strengthen capabilities at the production and supply stages and when products are used.

Group companies also continue working with our partner companies and customers to address this challenge. These efforts focus on three concepts: scrupulous maintenance of facilities and equipment, safe and secure operations, and awareness of safety.

Strengthening Efforts Across All Processes to Ensure Safe and Stable Supplies

Working with Stakeholders

Taiyo Nippon Sanso Receives the JCIA Technology Awards’ Special Technology Prize

We were recently honored to receive a Special Technology Prize from the Japan Chemical Industry Association (JCIA), a general incorporated association, in acknowledgment of business expansion achieved thanks to our development and commercialization of a technology to isolate the Oxygen-18 O stable isotope. One of three JCIA Technology Awards given out annually to companies to recognize the development and commercialization of outstanding chemical technologies that have contributed to the chemical industry, the economy and society, the Special Technology Prize commends original products or technologies that have advanced the progress of science and technology and which are recognized as outstanding despite being comparatively small in scale.

Taiyo Nippon Sanso Receives the JCIA Technology Awards’ Special Technology Prize

Relations with Customers

Securing certification under ISO 9001

In line with our commitment to providing products and services that customers can use safely and securely, we have established a quality management system based on ISO 9001, the International Organization for Standardization’s benchmark for such systems.

In addition to departments involved in production, sales and logistics sections handling liquid oxygen, liquid nitrogen, liquid argon and specialty gases are certified under ISO 9001. Departments involved in the production and installation of semiconductor fabrication equipment, the production of medical gases and medical gas supply systems, and in the helium gas and hydrogen gas businesses, have also earned certification. A total of five Taiyo Nippon Sanso departments and 34 affiliated companies are thus currently ISO 9001-compliant.

We are committed to continuously improving our quality management system with the aim of increasing both customer satisfaction and our reputation as a trustworthy corporate citizen.

Relations with Suppliers, Shareholders and Investors

Ensuring Fair Returns to Shareholders

Having positioned the provision of fair returns to shareholders as a key management responsibility, we strive to maintain stable dividends, while at the same time ensuring our dividend payout ratio fairly reflects our business performance. Guided by the strategic policy set forth in our new medium-term business plan, which runs from fiscal year 2015 through fiscal year 2017, we continue working to enhance our performance, as well as to raise the payout ratio. In line with this policy, we increased our year-end dividend for fiscal year 2015 by ¥1.00, to ¥7.00 per share, in recognition of the period’s solid operating results.

Relations with Employees

Evaluating employee performance and determining compensation

We have developed job-/role-specific criteria for evaluating the performance of and determining compensation for employees. Prioritizing a fixed cycle of actions (fulfill expectations/exercise capabilities → evaluate performance/determine compensation → provide feedback → foster human resources) and repeating this process both ensures fairness and impartiality and enhances job satisfaction.

In a bid to invigorate our organization and create a bold, forward-looking corporate culture, in April 2015 we modified personnel systems for management-level employees. We began by seeing to ensure our ability to assign people to the right positions in a timely manner by eliminating our vocational qualification system, an essential component of which is seniority, in favor of a system that focuses on performance. Additionally, with the aim of enhancing profit sharing, we raised the percentage of annual remuneration accounted for by bonuses, thereby creating a system of compensation that is more closely tied to the achievement of the targets of Ortus Stage 1, our current medium-term business plan.

Through these and other measures, we will continue working to create a highly competitive organization and to cultivate human resources that will guarantee our position as an industry leader.

Relations with Local Communities and Society

Offering Facility Tours for Members of the Media

In line with our commitment to ensuring the adequate disclosure of information to our many stakeholders, we offer facility tours to journalists and other members of the media. In fiscal year 2015, we organized such a tour at the Sendai Sanso Center. The tour focused on the facility’s response in the wake of the Great East Japan Earthquake of 2011 and the progress of post-disaster reconstruction efforts. Tour participants also heard how 50 individuals escaped the tsunami by climbing up to the 20-meter mark of the facility’s air separation plant when the alarm sounded.

Offering Facility Tours for Members of the Media