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

Working with Stakeholders

Facility tour and chemistry lab lesson held for families of employees in Shanghai

In October 2015, local subsidiary Shanghai Taiyo Nippon Sanso Gas Co., Ltd., held a facility tour and chemistry lab lesson for the families of its employees. With two-income households the norm in the People’s Republic of China (PRC), family understanding and cooperation are crucial to the ability of employees to balance the demands of career and home. Shanghai Taiyo Nippon Sanso organized this event with the aim of encouraging a better understanding, as well as a positive appreciation, on the part of its employees’ families.

Excitement was high among visiting family members, with this being the first time for most to see, among others, gas production facilities and liquid oxygen, and the event proved highly productive for all involved. Going forward, we would like to explore the feasibility of holding events such as this at domestic production facilities.

Facility tour and chemistry lab lesson held for families of employees in Shanghai

Initiatives to reduce technological risks at overseas subsidiaries

Sales in overseas markets account for approximately 40.0% of consolidated net sales. Accordingly, ensuring the effective management of technological risks across the Taiyo Nippon Sanso Group, including overseas Group companies, is a critical concern. At the same time, customers with global operations demand that we deliver the same level of safety and technology management worldwide. With this in mind, we recently published the Taiyo Nippon Sanso Group Standards, a set of common rules to be observed by all Group companies. We are also promoting the preparation of textbooks and holding educational seminars on security issues at overseas local subsidiaries. To date, a total of 120 employees have attended these seminars.

In the years ahead, we will take steps to enhance the Taiyo Nippon Sanso Group Standards and the content of technology management and educational materials, and will continue educational seminars on security issues at overseas Group companies. We look forward to working as one with Group companies to improve both security and technology management capabilities.

 

Initiatives to reduce technological risks at overseas subsidiaries

Relations with Customers

Safety management

Recognizing that we have a responsibility to ensure safe and stable supplies of industrial gases, we have created a Group safety management system headed by the president, which underpins a meticulous approach to safety management.

Guided by the president’s policy of implementing 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, we promote voluntary safety management initiatives and conduct management inspections and safety and environmental audits by pertinent divisions on a periodic basis, thereby ensuring the effectiveness of our safety management efforts.

At parent company- and affiliate-operated sites with production functions, we have established a safety commendation program that recognizes outstanding achievements attributable to voluntary safety management initiatives.

To ensure our ability to respond promptly and effectively in the event of gas leaks or other emergencies during the transport or use thereof by customers of specialty gases, we have specified 55 sites across Japan as emergency response depots, each of which is equipped with materials and equipment crucial to mitigating damage from such an incident. Training and drills for emergency response personnel are conducted at least once annually, thereby ensuring a high level of preparedness at all times. At present, we have approximately 260 registered emergency personnel.

To ensure the safe use of our industrial gases, we offer customers safety seminars that provide information on the properties, dangers and safe handling of various products.

Relations with Shareholders and Investors

Communicating with shareholders and investors

In addition to our annual general meeting of shareholders, we hold results presentations twice annually and hold facility tours for analysts. Results presentations center on explanations of our operating results and forecasts targeted at institutional investors and buy-side analysts. Materials prepared for these presentations are also made available via our corporate website. Visual aids are used to support explanations and enhance shareholders’ and investors’ understanding of our operations and operating results.

Facility tours are designed to enhance institutional investors’ and buy-side analysts’ understanding of our operations and include visits to both production facilities and research laboratories. To date, we have organized tours of the Keihin Factory’s Plant Engineering Center, the Chiba Sanso Center, the Yamanashi Laboratory and the Tsukuba Laboratory.

We also publish a variety of investor relations tools, including full-term and interim business reports and an annual report, all of which can be downloaded from our website. In addition to financial results, the annual report contains information on management strategies, a message from the president and features on topics of interest. The annual report was previously published only in English and aimed specifically at overseas institutional investors, but in the interest of equal disclosure, in 2016 we also began publishing the report in Japanese.

Communicating with 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, ended March 31, 2015, through fiscal year 2017, ending March 31, 2017, we continue working to enhance our performance, as well as to raise the payout ratio. In line with this policy, having paid a year-end dividend for fiscal year 2015, and an interim dividend for fiscal year 2016, ended March 31, 2016, of ¥7.00 per share, we increased our year-end dividend for fiscal year 2016 to ¥9.00 per share.