CORPORATE REPORT 2013 DATA BOOK

Transcription

1 CORPORATE REPORT 2013 DATA BOOK

2 Contents 02 Communication Tools 03 Our Basic Concept of CSR Major Themes and Items of CSR ivities and Their Relationships with KPIs for FY Environmental Data The Environment 21 Social Data Consumer Issues Community Involvement and Development Human Rights and Labor Practices Labor Practices 31 Governance Data Organizational Governance Fair Business Practice 37 KPIs (Key Performance Indicators) TAISEI KPIs Group Company KPIs 45 Financial Data Consolidated Balance Sheets Consolidated Statements of Income Consolidated Statements of Comprehensive Income Consolidated Statements of Changes in Net Assets Consolidated Statements of Cash Flows 53 Corporate Data Corporate Profile / Board of Directors, Corporate Auditors and Executive Officers TAISEI Corporation Organization Chart Overseas Network External Awards / External Evaluations 58 Third Party Opinion Editorial Policy This report is designed in order to build understanding among stakeholders of TAISEI corporate activities, which are conducted in line with the TAISEI Group ideal, and the Group action guidelines. The report is composed primarily of TAISEI data and information content. Organizations Covered TAISEI Corporation and main Group companies Reporting Period FY 2012 (from April 1, 2012 to March 31, 2013) (Some content from other fiscal years is also included.) Reference Guidelines Ministry of the Environment, Environmental Reporting Guidelines (FY 2007 Version) ISO (Guidance on Social Responsibility) Issued October 2013 A Note About Forward-Looking Statements Opinions, outlooks, and other forward-looking statements in this report are based on information available to us at the time of writing. Please understand, therefore, that changes in various factors may cause actual target fi gures and results to differ from these projections. 1 TAISEI CORPORATE REPORT 2013 DATA BOOK

3 Communication Tools TAISEI CORPORATE REPORT 2013 The Corporate Report introduces main CSR initiatives of the TAISEI Group aimed at resolving social in special reports. Also introduced are the advanced technologies that support those initiatives and construction achievements. CORPORATE REPORT 2013 TAISEI CORPORATE REPORT 2013 DATA BOOK The Data Book provides information on the status of TAISEI Group CSR activities. It contains primary financial information together with non-financial information such as the, objectives, and current status of CSR activities established with reference to ISO 26000, the status of environmental management activities (the TAISEI Agenda), and main KPIs. C ORPORATE REPORT 2013 DATA BOOK TAISEI ANNUAL REPORT 2013 Directed mainly to overseas investors, the Annual Report contains financial information together with information on main CSR activities aimed at resolving social, the latest technologies, and overseas construction achievements. A NNUAL REPORT 2013 TAISEI CSR Website TAISEI Group financial information is published in the annual security report, and nonfinancial information is published on the CSR website. On the CSR website, information is presented in individual e-books, and is also published via links to information about our CSR activities in general that have been disclosed. TAISEI CSR Website Content Our Basic Concept of CSR Corporate activities of the TAISEI Group aimed at sustainable growth of society are reported here. The Environment Basic conceptual approaches and measures relating to preservation of the environment are presented here. Consumer Issues Material about assuring quality and improving customer satisfaction as well as research and technological development aimed at resolving social are presented here. Community Involvement and Development Various initiatives that contribute to local communities are presented here. Labor Practices Basic conceptual approaches and measures relating to safe construction and services are presented here. Human Rights and Labor Practices Basic conceptual approaches and measures relating to the assurance of a work environment that is pleasant and rewarding for everyone are presented here. Organizational Governance Information disclosure on organizational governance, which is the foundation for CSR management, is introduced here. Fair Business Practices Basic conceptual approaches and measures relating to the promotion of compliance are presented here. TAISEI CORPORATE REPORT 2013 DATA BOOK 2

4 Our Basic Concept of CSR Promote CSR with Shared Group Ideal and Values The TAISEI Group has sought to realize the Group Ideal, To create a vibrant environment for all members of society, by having all employees share the TAISEI Spirit and by implementing our Overall Management Perspective (TAISEI VISION 2020, Mid-Term Business Plan) and Overall Principles of Conduct (Group ion Guidelines) when pursuing our business activities. TAISEI Group Ideal To create a vibrant environment for all members of society Continuing Objectives to be Pursued by the TAISEI Group (Goals) TAISEI Spirit TAISEI Group Ideal Commitment to Openness Creation of Value Evolution of TAISEI Sprit Traditions A slogan that concisely expresses the Group Ideal, the TAISEI Spirit, and the Group ion Guidelines. TAISEI Spirit Overall Principles of Conduct ion Guidelines Overall Management Perspective Mid-Term for TAISEI Business Plan Personnel and the (FY ) TAISEI Group as a Whole Conceptual approaches valued by all TAISEI Group members for the pursuit and realization of the Group ideal Mid-Term Business Plan Basic Policy 1. Fulfi llment of social responsibilities imposed on the construction industry 2. Establishment of a business structure for the creation of high-added value Business Construction business: Strengthening of the core business Development/improvement of social infrastructure: Contribution to post-earthquake reconstruction Overseas business: Establishment of an earnings structure Strengthening of initiatives and expansion of business fi elds to create high added value Development/improvement of robust business foundations Group ion Guidelines The basic principles for action by the TAISEI organization and the standards for action and judgment to be strictly observed and positively acted on by TAISEI Group members at all levels The 14 points in the Group ion Guidelines are organized along the 7 core subjects of the ISO standard * Overall Principles of Conduct Commitment to Openness 1. Cultivating an open corporate culture 2. Securing a pleasant working environment 3. Respect for fundamental human rights and diversity Creation of Value 4. Creating a vibrant environment for all members of society 5. Striving to create value 6. Pursuing customer satisfaction 7. Ensuring and improving safety and quality Evolution of traditions 8. Respect for traditions 9. Promoting partnerships with subcontractors and suppliers 10. Promoting environmental conservation and creation 11. Communication with local communities 12. Conduct in the international community 13. Appropriate disclosure of information 14. Fulfilling social responsibilities The seven core subjects of ISO The Environment 2. Consumer 3. Community involvement and development 4. Human rights and Labour practises 5. Labour practises 6. Fair operationg practices 7. Organization Main Issues and Objectives Promote environmental management activities Quality control and customer satisfaction improvement Contributions to local communities Respect for human rights Creating a pleasant work environment Support for employees career development Thoroughgoing occupational health and safety management, collaboration with the TAISEI Association of Subcontractors for Health, Safety, and the Environment Supply Chain Management Promoting compliance Protection management and use of intellectual property Information security measures Corporate governance and internal controls Risk management Information disclosure and dialogue with stakeholders * ISO 26000: International guidance on social responsibility for all kinds of organizations, including companies 3 TAISEI CORPORATE REPORT 2013 DATA BOOK

5 Development of CSR ivities Utilizing ISO The TAISEI Group takes the perspective of our stakeholders (interested parties) when considering CSR and objectives and establishing challenges and concrete measures. In fiscal 2012, we established key to focus on as KPIs * after using our own unique checksheet based on ISO to organize our initiatives and exchanging opinions with external CSR experts. STEP 1: Interview employees to investigate current conditions Holding a department CSR managers meeting TAISEI s CSR Promotion Section held a briefing for the 40 CSR managers in each division and the 10 in our main Group companies to inform them of our intention to investigate the status of CSR activities. The employees at the briefing increased their consciousness towards ISO and confirmed and shared the process for pursing CSR challenges in the future. Taking inventory of CSR activities based on ISO In order to survey the status of CSR activities, the CSR Promotion Section drafted an original checksheet based on the 36 established under 7 core subjects in the ISO standard. The checksheets were distributed in advance to the STEP 1 STEP 2 Interview employees to investigate current conditions Identify challenges for the agenda Implementing measures for STEP 3 within the PDCA cycle Steps Towards Implementation CSR managers from each division and from the main Group companies who were later interviewed regarding their responses to take an inventory of the current state of CSR activities. STEP 2: Identify challenges for the agenda Extracting and objectives and setting KPIs The status of the CSR activities in the inventory were then evaluated with the help of the CSR experts at Craig Consulting, and CSR and objectives were extracted for each division. These were then used to establish KPIs. Addressing and promoting measures As one issue identified was supply chain management (CSR procurement), a CSR Procurement Council was established as an internal working group and a procurement policy was formulated. In addition, a workshop was held for the CSR managers from each TAISEI division and from the main TAISEI Group companies. STEP 3: Implementing measures for within the PDCA cycle PDCA Cycle Starting with the TAISEI Group Plan comprised of Overall Principles of Conduct and the Overall Management Perspective (Plan), main initiative items were undertaken (Do). The CSR Promotion Section worked with Craig Consulting to set key as part of the TAISEI Agenda and/or as KPIs and to assess the status of those initiatives (). Yearly improvements () will be made to achieve sustained growth of the enterprise. The following pages detail the status of initiatives in fiscal 2012 (pages 5-6). Plan Overall Management Perspective Mid-Term Business Plan and Business Issues Overall Principles of Conduct Group ion Guidelines (Basic conceptual approach to CSR activities) Do Main Initiative Items Sustained growth of the enterprise Plan Do Identify points of improvement to address and objectives of CSR activities and set and objectives for the next fiscal year TAISEI Agenda 2012 performance figures and degree of achievement Main initiative items and main KPI performance figures and degree of achievement Message from an Expert Mr. Mitsuo Ogawa, President of Craig Consulting The objective of CSR for the TAISEI Group is to realize the Group Ideal and is based on the Group ion Guidelines and Mid-Term Business Plan. The 7 core subjects of ISO were referenced when establishing CSR and KPIs previously as well, but in fiscal 2012, an original checksheet based on ISO was used to analyze activities carried out until then more deeply, after which discussions were held with main departments. This approach deserves high praise as an initiative that will raise the level of the Group s CSR activities so that they are better suited to the global field within the industry-specific practices of a contracting business. The results of the analysis demonstrated that one issue is promoting CSR throughout the supply chain. In upcoming years, I hope that TAISEI can expand this initiative beyond it to other Group companies and other partners in the supply chain as well. * KPI: Key Performance Indicator TAISEI CORPORATE REPORT 2013 DATA BOOK 4

6 Major Themes and Items of CSR ivities and Their Relationships with KPIs for FY 2012 Plan The Seven Core Subjects of ISO26000 <Overall Principles of Conduct> ion Guidelines for TAISEI Personnel and the TAISEI Group as a Whole, Individual Policies, Guidelines <Overall Management Perspective> Mid-Term Business Plan and Business Issues 1. The Environment Prevention of pollution Sustainable resource use Climate change mitigation and adaptation Protection of the environment, biodiversity and restoration of natural habitats 2. Consumer Fair marketing, factual and unbiased information and fair contractual practice Protecting consumers health and safety Sustainable consumption Consumer service, support, and complaint and dispute resolution Consumer data protection and privacy Access to essential services Education and awareness 3. Community involvement and development Community involvement Education and culture Employment creation and skills Technology development and access Wealth and income creation Health Social investment 4. Human rights and Labor practises Due diligence Human rights risk situations Avoidance of complicity Resolving grievances Discrimination and vulnerable groups Civil and political rights Economic, social and cultural rights Fundamental principles and rights at work Employment and employment relationships Conditions of work and social protection 5. Labor practises Social dialogue Health and safety at work Human development and training in the workplace ion Guidelines for TAISEI Personnel and the TAISEI Group as a Whole Environmental Policies Declaration of TAISEI on Biodiversity Preservation TAISEI Agenda 2012 Performance Eco First Company ion Guidelines for TAISEI Personnel and the TAISEI Group as a Whole Quality Policy Policy on the Protection of Personal Information Standards of Conduct for the Use of Social Media ion Guidelines for TAISEI Personnel and the TAISEI Group as a Whole ion Guidelines for TAISEI Personnel and the TAISEI Group as a Whole ion Guidelines for TAISEI Personnel and the TAISEI Group as a Whole Health and Safety Policy Strengthening of initiatives and expansion of business fields to create high added value Development/improvement of social infrastructure: Contribution to postearthquake reconstruction (1) Present ideas and technologies that differentiate us in terms of the environment (2) Develop and provide environmental technology Strengthening of initiatives and expansion of business fields to create high added value (1) Expand TAISEI QUALITY activities (2) Develop and provide technologies, such as base isolation and vibration control, that help resolve the problems facing society Development/improvement of social infrastructure: Contribution to postearthquake reconstruction Development/improvement of robust business foundations Continuous implementation of communitybased activities with local residents Development/improvement of robust business foundations (1) Strengthen human resources and promote diversity (2) Create a system that maximizes employee potential Development/improvement of robust business foundations Establishment of safety-first posture 6. Fair operating practices Anti-corruption Responsible political involvement Fair competition Promoting social responsibility in the value chain Respect for property rights ion Guidelines for TAISEI Personnel and the TAISEI Group as a Whole Policy on Intellectual Property Procurement Policy Development/improvement of robust business foundations Strengthening of compliance and ICT governance 7. Organization Organizational governance ion Guidelines for TAISEI Personnel and the TAISEI Group as a Whole Basic Poliy for the Development of Systems Necessary to Ensure the Properness of Operations Observing the Charter of Corporate Behavior of the Nippon Keidanren Risk Management Policy ion Guidelines concerning Countermeasures to New Strains of Influenza Policy on Business Continuity in Times of Disaster Information Disclosure Policy Development/improvement of robust business foundations Enhancement of internal controls throughout the TAISEI Group 5 TAISEI CORPORATE REPORT 2013 DATA BOOK

7 TAISEI Group Main Issues and Objectives TAISEI Group Initiative Items TAISEI Group Main KPIs* Degree of Achievement Improvement Do Field Pages Promote environmental management activities (achieve TAISEI Agenda 2012) Contribute to realizing a low-carbon society energy conservation Promote 3R (reduce, reuse, recycle) activities Promote green procurement Proper control of construction waste Provide environmentally friendly technology Conduct comprehensive environmental activities CO2 emissions reduction rate during building use (u) CO2 emissions reduction rate during construction (u) Rate of decrease of electric power use (offices) ( ) Number of proposals given to customers to improve energy conservation in their facilities ( ) of recycling of construction waste (ê) of green procurement (u) Rate of electronic manifest penetration (ê) Amount of media coverage of environmental technologies / PJ using these technologies (u) Rate of participation in environment-related training ( ) The environment P7-20 (CSR ivities) P37, P43, P44 (KPIs) P9 (TAISEI Agenda) Quality control and customer satisfaction improvement Establishment and observance of quality management standards and procedures Development and provision of technologies for resolving social Customer satisfaction surveys (ê) Number of patent applications filed and patents granted (u) Amount of media coverage of development of technologies / Projects in which technologies were applied (u) P21-24 (CSR ivities) P38, p44 (KPIs) Contributions to local communities Promoting activities contributing to society Expansion of employees volunteer activities (Support activities in disasteraffected areas, etc.) Number of activities contributing to society and the environment (u) Number of employees who participated in volunteer activities (u) P25-P26 (CSR ivities) P39 (KPIs) Society Respect for human rights Creating a pleasant work environment Support for employees career development Human rights awareness raising activities Promotion of diversity Support for work-life balance Promotion of personnel training Rate of attendance in human rights training (u) Number of participants in education and training for female leaders / Number of female managers / Number of female officers / Physically challenged employment rate / Number of re-employed individuals (u) Number of employees taking childcare leave (u) Rate of paid leave utilization (u) Number of former employees registered with the Job- Return system (u) Training hours per employee (u) of trainees at overseas construction sites (u) Number of trainees at overseas research institutes, etc. (u) P27-29 (CSR ivities) P39, P40 (KPIs) Thoroughgoing occupational health and safety management, collaboration with the TAISEI Association of Subcontractors for Health, Safety, and the Environment Continuous practice and improvement of TAISEI OHSMS Number of fatal accidents and frequency rate (u) Accident frequency rate ( ) Number of occupational accidents ( ) P30 (CSR ivities) P41, P43, P44 (KPIs) Promoting compliance Supply Chain Management Protection management and use of intellectual property Information security measures Ongoing implementation of compliance training Promoting CSR procurement Intellectual property risk management initiatives Protection and management of information Increasing awareness of information security Rate of participation in compliance training (Group training) (ê) Number of branches conducting compliance training for subcontractors (u) (to be set in FY2013) Number of training sessions on intellectual property rights (u) of major information security breaches (u) Number of company-wide education programs regarding information security (u) Governance P31-P34 (CSR ivities) P41, P44 (KPIs) Corporate governance and internal controls Risk management Information disclosure and dialogue with stakeholders Dissemination and establishment of the TAISEI Group Ideal Structure of Values and Policies BCP initiatives Promoting dialogue with stakeholders Rate of TAISEI Group Ideal e-learning implementation (u) Rate of participation in major disaster response training (ê) Number of dialogues, etc. (u) P35-P36 (CSR ivities) P42, P44 (KPIs) * KPI(s): Key Performance Indicator(s) u : TAISEI KPIs, : TAISEI Group of companies KPIs, ê : TAISEI and TAISEI Group of companies KPIs TAISEI CORPORATE REPORT 2013 DATA BOOK 6

8 Environmental Data The Environment Plan (Overall Principles of Conduct) Basic Conceptual Approaches (Overall Management Perspective) Mid-Term Business Plan and Business Issues The TAISEI Group is formulating Environmental Policies aimed at the formation of an environmentally friendly society. We will determine objectives and measures for taking action, strive for preservation and creation of the environment and promote advanced environmental business. Strengthening of initiatives and expansion of business fields to create high added value Development/improvement of social infrastructure: Contribution to post-earthquake reconstruction (1) Present ideas and technologies that differentiate us in terms of the environment (2) Develop and provide environmental technology Plan Do Main Issues and Objectives (FY 2012) Promote environmental management activities (achieve TAISEI Agenda 2012) Main Initiative Items (FY 2012) Contribute to realizing a low-carbon society Promote 3R (reduce, reuse, recycle) activities Promote green procurement Proper control of construction waste Provide environmentally friendly technology Main KPIs * (Key Performance Indicators) CO2 emissions reduction rate during building use CO2 emissions reduction rate during construction Rate of recycling of construction waste Rate of green procurement Rate of electronic manifest penetration Amount of media coverage of environmental technologies / PJ using these technologies * KPI(s): Level of achievement () of Key Performance Indicator(s) and fiscal 2012 improvements () are described on page 37. Degree of achievement Improvement See the TAISEI Agenda 2012 on P9 Environmental Business Promotion Framework Plan The TAISEI Group is working on a promotion framework for improvement of environmental technology that contributes to achievement of a low-carbon society, preservation of biodiversity, and formation of a recycling society. Environmental Policies With the group ideal of To create a vibrant environment for all members of society, TAISEI, through its construction activities, strives for the development of quality social infrastructure and the improvement of the living environment in harmony with Nature. As environmental problems worldwide increase, TAISEI s business activities are necessarily a part of the burden on the environment. With these environmental management principles as a guide, and working for an environmentally sensitive society, TAISEI and its group companies strive for Environmental Protection and Innovation, and promote Pioneering Environmental Projects in all corporate activities. ion Guidelines 1. We shall prevent environmental pollution through compliance with environmental laws, regulations, and agreements and, through the effective application of our Environmental Management System (EMS), expand and continually improve environmental conservation activities. 2. We shall develop environmental technologies that contribute to the realization of a low-carbon society, the conservation of biological diversity, and the formation of a recycling-based society, and use these technologies to benefit our clients and resolve environmental problems. 3. During both planning and design phases, we shall give proper consideration to global and regional environments, and propose to our clients the creation of facilities that harmoniously coexist with the natural environment, conserve energy and resources throughout their life-cycle, and reduce CO2 emissions. 4. During construction, we shall reduce CO2 emissions, give proper consideration to biological diversity, and promote the efficient use of resources, thereby reducing the burden on the environment. In cooperation with specialty contractors and business partners, we shall promote the 3R of construction byproducts (Reduce, Reuse, Recycle), along with other environmental conservation activities. 5. We shall communicate effectively with local communities, and as a worthy corporate citizen, contribute to the conservation of regional environments. 6. We shall proactively cooperate with other nations, NGO s and NPO s in creating and protecting the environment. 7 TAISEI CORPORATE REPORT 2013 DATA BOOK

9 Declaration of TAISEI on Biodiversity Preservation Based on the TAISEI Group Ideal To create a vibrant environment for all members of society, and in order to remain an organization that learns from and cares for nature, TAISEI proclaims the following action policy. 1. Analyze the risks the Company s construction activities pose to biological resources and the ecosystem, utilize environmental management systems, and minimize the impact of those risks to the maximum extent possible. 2. Develop environmental technologies to preserve and re-create biodiversity, and utilize those technologies with clients to sustain ecological services. 3. Perform urban development and facilities design that coexists in harmony with nature, and aggressively submit proposals that serve to preserve and increase biodiversity. 4. Cooperate with business associates, including specialty sub-contractors, in pursuing biodiversity preservation. 5. Promote communication with local communities, cooperate with domestic/overseas NPO/NGO s, engage in proactive biodiversity conservation activities, and disclose the accomplishments of those activities. TAISEI Environmental Management Organization Chart President Environment Committee Environment Committee Subgroup Subgroup & Working groups Taisei Group Environmental ion Meeting Central Safety Committee *1 Specific Environmental Representative (CCMO) *2 General Manager Corporate EMS Secretariat Head Office Environment Committee Environmental Manager Internal Environmental Audit Staff Head Office Head Office EMS Secretariat Branch Manager Branch Environment Committee Environmental Manager Branch Branch EMS Secretariat *1 Central Safety Committee From fiscal 2012, environmental accidents are subjects for investigation and deliberation of the Central Safety Committee. *2 CCMO Having appointed the General Manager of the Environment Division as our Chief Carbon Management Officer (CCMO) in FY 2011, TAISEI continues to promote the Carbon Management Working Group (CMWG) across all its divisions with a view to reducing company-wide carbon emissions. CMWG prepares plans and makes strategic decisions regarding risks and business opportunities related to carbon emissions. TAISEI CORPORATE REPORT 2013 DATA BOOK 8

10 Environmental Data Promote Environmental Management ivities (Performance and Objectives) The data on P9-18 is rounded off and therefore may not tally with totals. TAISEI s Environmental Management Targets for Fiscal 2013 Regarding the recovery and reconstruction from the Great East Japan Earthquake as important, we have set the following environmental management targets for fiscal 2013 in line with our Charter of group action guideline, environmental policies, and medium-term management plan. Objective Targets for Fiscal 2013 Promoting 1 Div./Dept. 8 Manage disaster waste Dispose properly and promote 1 reuse for reconstruction Building Construction, Civil Engineering, Environment 1. Contribute to the recovery & reconstruction of devastated areas by the Great East Japan Earthquake Manage radioactive contaminated materials Address environmental risks Decontaminate devastated areas quickly and not proliferate radioactive materials Consideration for local citizens and ensure safety of workers & employees Improve environmental skills of workers & employees and execute patrol to prevent environmental accidents Building Construction, Civil Engineering, Marketing & Sales, Nuclear, Environment, Technology Center Building Construction, Civil Engineering, Safety, Administration Building Construction, Civil Engineering, Safety, Environment Address recovery Contribute to reconstruct & develop environmentally friendly town and infrastructures Building Construction, Civil Engineering, Marketing & Sales, Urban Development, Building Design, Technology Center, Environment Contribution to low carbon society 2. Address global warming Reduce CO2 emissions at the operation stage of buildings by 30% compared with fiscal 1990 level Reduce CO2 emissions at the construction stage by 40% compared with fiscal 1990 level Building Design, Environment Building Construction, Civil Engineering, Environment Promote 1 reduction in energy consumption Promote 1 reduction in energy consumption rate per floor area at offices (Reduce consumption rate by 10% compared with fiscal 2010 level) Administration, Environment Increase construction waste recycling rate 2 (Construction waste recycling rate: 95%) Building Construction, Civil Engineering, Safety 3. Effectively Utilize resources Promote 1 3R activities Reduce mixed waste weight rate 3 of new building construction projects (Less than 30%) Reduce construction waste processing amount 4 per value of finished work (Less than 350t/ hundred million yen) Building Construction, Safety Civil Engineering, Safety Promote 1 green procurement Promote 1 the adoption of green procurement for major items following the green procurement guideline (Green procurement index: 30%) Building Construction, Civil Engineering, Building Design, Procurement, Environment 4. Conserve biodiversity and activities for environmental contribution Promote 1 biodiversity conservation and creation Environment-related contribution to local community Enforce and execute activities & trainings to preserve biodiversity (Over 6 activities & trainings) Develop and evolve biodiversity technologies in both design and construction stages Promote 1 environment-related contribution activities 5 Corporate planning Office, Environment, Urban Development Building Construction, Civil Engineering, Building Design, Environment, Technology Center, Urban Development, Building Construction, Civil Engineering, Administration, Environment 9 TAISEI CORPORATE REPORT 2013 DATA BOOK

11 Non occurrence of environmental accident Improve knowledge of environmental laws and ensure prevention measures Building Construction, Civil Engineering, Safety 5. Address environmental risks Appropriate management of construction waste Appropriate management of harmful and/or chemical substances Dispose construction waste properly and improve electronic manifest penetration rate 6 (Rate: 80%) Ensure appropriate management and disposal of harmful and/or chemical substances such as sprayed asbestos, building materials containing asbestos, and equipment containing PCB Building Construction, Civil Engineering, Safety Building Construction, Civil Engineering, Safety, Administration, Urban Development Appropriate management of contaminated soil Ensure management and disposal of contaminated soil 7 are both appropriate and thorough Building Construction, Civil Engineering, Safety Urban Development, Environment 6. Research, develop, and propose environmental technologies Provision of environmentally friendly technologies Promote research, development, and application of technologies related to CO2 reduction and energy conservation (Over 20 media presentations) Promote 1 comprehensive proposals for environmentally friendly technologies (Over 50 proposals) Develop technologies related to radioactive material contamination and remote controlling of equipment Technology Center, Building Design, Environment, Engineering Building Design, Marketing & Sales, Environment, Engineering Nuclear, Technology Center, Environment 7. Promote 1 excellent environmental activities in many fields Promote 1 eco-model projects Conduct more than 26 projects Building Construction, Civil Engineering, Safety, Environment 1. The word promote is used here to mean the realization of specific targets set by the promoting divisions and/or departments 2. Construction waste recycling rate (excluding sludge) = [(amount of waste - final disposal amount) / amount of waste] Mixed waste weight rate does not include the weight of concrete waste, asphalt waste, and sludge 4. Construction waste includes sludge, but disaster waste 5. Environment-related contribution activities include volunteers, local community activities at construction sites, and other related activities 6. Electronic manifest penetration rate = (number of electronic manifests issued/number of manifests issued) Contaminated soil includes radioactive contamination The targets above apply only to Japan. Targets beyond 2014 (For reference only) Objective Targets for Fiscal Reduce CO2 emissions at the operation stage of buildings 2. Reduce CO2 emissions at the construction stage Reduce CO2 emissions at the operation stage of buildings by 40% by fiscal 2020 compared with fiscal 1990 level Reduce CO2 emissions at the construction stage by 50% by fiscal 2020 compared with fiscal 1990 level 3. Improve electronic manifest penetration rate Improve electronic manifest penetration rate up to over 80% by fiscal Promote eco-model projects 30 projects including overseas projects by 2014 TAISEI CORPORATE REPORT 2013 DATA BOOK 10

12 Environmental Data Measures to Address Global Warming Plan This presents data on activities for environmental preservation and creation through construction projects. Items that involve independent assurance report (P20) are marked with a checkmark symbol. Projected CO2 emissions and reduction rate at the operation stage of buildings Do Projected CO2 reduction rate (%) CO2 emissions (1000 t-co2) Figure calculated from 1990 benchmark (1000 t-co2) Projected CO2 emissions (1000 t-co2) Projected CO2 reduction rate Emissions by floor area (kg-co2/year m 2 ) FY 2013 target 30% reduction in projected CO2 emissions (compared to FY 1990) * Emissions by floor area (kg-co2/year m 2 ) FY CO2 emissions (1000 t-co2) Environmental Performance Index Computation Standards FY 2013 target 40% reduction in CO2 emissions (compared to FY 1990) CO2 emissions CO2 emissions intensity (kg-co2/million yen) FY2013 Aggregation period: April 1, 2012-March 31, 2013 Subject organization: Taisei Corporation (Japan domestic only) Aggregation standards: Data is aggregated on the basis of in-house regulation for environmental information management and in accordance with the on the Rational Use of Energy, on Promotion of Global Warming Countermeasures, Waste Disposal and Public Cleaning, Fluorocarbons Recovery and Destruction, GHG Protocol, etc. Purpose Item Computation method Classifi cation by business category Classifi ed under civil engineering business (worksite), construction business (worksite), offi ces (including development and other businesses) The scope of aggregation for offi ce data covers the TAISEI head offi ce, branches, and the Technology Center Material Flow-Related Global Warming Prevention Resource Recycling CO2 emissions Scope classifi cation CO2 emissions Calculation methods NOx and SOx emissions Calculation methods <Civil engineering business, construction business> Calculation method for energy used, fossil fuel used (diesel oil, fuel oil, kerosene), electric power used, water used < O f fi c e s > Calculation method for energy used, fossil fuel used (diesel oil, fuel oil, kerosene), electric power used, city gas used, water used <Civil engineering business, construction business> Calculation method for main building materials and construction materials purchased <Civil engineering business, construction business> Calculation method for amount of chlorofl uorocarbons, halons recovered <Civil engineering business, construction business> Calculation method for amount of soil generated by construction and removed <Civil engineering business, construction business> Calculation method for amount of construction waste removed <Civil engineering business, construction business> Calculation method for amount of concrete forms and replacement forms used Projected CO2 emissions and reduction rate during building use CO2 emissions and reduction rate during construction Results for use of green procurement items Scope 1: CO2 emissions from burning of fossil fuels Scope 2: Indirect CO2 emissions from electric power use, steam use, and hot/cold water use Scope 3: CO2 emissions from removal of construction waste from construction sites and from outgoing and returning transport of soil generated by construction (offsite emissions). CO2 emissions coeffi cients Diesel oil, fuel oil, and kerosene: Calculated using the fuel consumption data by the Japan Construction Machinery and Construction Association minus the oil and fat content, with the emission coeffi cients in the on the Rational Use of Energy and the on Promotion of Global Warming Countermeasures Electric power: Calculated using the 2011 user-end emissions coeffi cient (before refl ection of Kyoto credit) of t-co2/ MWh announced by the Federation of Electric Power Companies of Japan. Emissions for the previous fi scal year were also updated using this coeffi cient. City gas: Calculated using the standard calorifi c value from city gas providers and the emissions coeffi cient in the on Promotion of Global Warming Countermeasures. Calculated NOx and SOx emissions from diesel oil, fuel oil, and kerosene Calculated in the past fi ve years, using the fuel consumption given by the Japan Construction Machinery and Construction Association minus the oil and fat content, with the emission coeffi cients published in Revised LCA Index for Architectural Structures: A Tool for Assessing Measures Against Global Warming, Resource Consumption, and Waste Production by the Architectural Institute of Japan. Amounts used during two-month period of fi scal year 2012 sampled from 144 construction sites were aggregated and usage (intensity) per value of work performed in that two-month period was calculated. Annual emissions were calculated by multiplying the value of work for the year by this intensity. The calculations for civil engineering are performed by work category. Starting in the current fi scal year, the annual amount purchased and amount used are calculated on a monthly basis at each offi ce, for all offi ces. Main building materials and construction materials purchased directly for TAISEI independent projects and for joint projects in which TAISEI is the representative. Amount of chlorofl uorocarbons and halons recovered for disposal contracted by TAISEI Waste soil generated and removed from construction sites CO2 emissions during construction Value of work in current period (millions of yen) Construction by products, etc. (waste, valuable materials) generated by TAISEI independent projects and by joint projects in which TAISEI is the representative. Forms purchased directly for TAISEI independent projects and for joint projects in which TAISEI is the representative. Calculated using energy-saving plans for each of 42 projects for architectural structures designed by TAISEI with total fl oor area of 2,000 m 2 or more, a total of approx. 890,000 m 2. Worksite CO2 emissions and rate of reduction in CO2 emissions compared to fi scal 1990 Portion introduced into design specifi cations calculated using Eco-Sheet CASBEE for architectural structures designed by TAISEI Recycling rate ((Amount generated Amount for fi nal disposal) / Amount generated) 100 Civil engineering Building construction Total 199, , ,581 CO2 quantity (1000 t-co2) CO2 emissions reduction rate (%) 55.1* 56.7* 55.9 * KPIs P37 * KPIs P37 Do TAISEI CORPORATE REPORT 2013 DATA BOOK

13 Environmental Impact of Business ivities Do This presents data on activities for the purpose of environmental preservation and creation through construction business activities. Items that involve independent assurance report (P20) are marked with a checkmark symbol. Material Flow INPUT Unit FY2008 FY2009 FY2010 FY2011 FY2012 Total energy usage 10 9 MJ Worksites (building construction) 10 9 MJ Worksites (civil engineering) 10 9 MJ Offices 10 9 MJ Total for fossil fuels (diesel fuel, fuel oil, and kerosene) 1,000kl Diesel fuel 1,000kl Kerosene 1,000kl Fuel oil 1,000kl Total for electric power 10 6 kwh Worksites (building construction) 10 6 kwh Worksites (civil engineering) 10 6 kwh Offices 10 6 kwh City gas (offices) 1,000m Total for main building materials used 1,000t 7,043 5,549 5,958 6,742 6,676 Ready-mixed concrete 1,000t 6,021 4,627 5,082 5,440 5,200 Aggregate (gravel, crushed rock, etc.) 1,000t Cement 1,000t Steel 1,000t Wood building materials 1,000t Asphalt 1,000t (Amount of which was green procurement) *1 1,000t 2,621 2,732 2,079 1,761 2,161 Total amount of concrete forms used 1,000m 2 7,006 4,629 4,216 4,741 4,407 Tropical plywood forms 1,000m 2 4,975 3,605 3,079 3,094 3,543 Substitute forms 1,000m 2 2,031 1,024 1,137 1, Replacement forms as percentage % Water 1,000m 3 3,188 2,537 3,122 3,063 1,663 OUTPUT Unit FY2008 FY2009 FY2010 FY2011 FY2012 Total CO2 emissions 1,000t-CO Worksites (building construction) 1,000t-CO Worksites (civil engineering) 1,000t-CO Offices 1,000t-CO Total CO2 emissions 1,000t-CO Scope1 1,000t-CO Scope2 1,000t-CO Scope3 1,000t-CO NOx t 1,177 1, , SOx t Amount of chlorofluorocarbons and halons recovered t Soil generated by construction works (offsite emissions) 1,000m 3 1,669 1,118 1,757 1,717 2,753 Construction waste 1,000t 1,980 1,687 1,228 1,633 2,236 Recycled amount and intermediate treatment amount 1,000t 1,950 1,646 1,213 1,614 2,220 Direct final disposal amount 1,000t (Amount of which was asbestos) 1,000t INPUT DATA Energy usage (X10 9 MJ) Worksite (civil engineering) Worksite (building construction) Offices FY2012 OUTPUT DATA CO2 emissions *2 (1,000 t-co2) Worksite (civil engineering) Worksite (building construction) Offices Scope1 Scope2 Scope FY2012 *1 Amount of green procurement items as component of main building materials used *2 Calculation of diesel oil for FY 2011 and previous fiscal years includes adjustment by subtraction of 20% for diesel oil equivalent of fats and oils TAISEI CORPORATE REPORT 2013 DATA BOOK 12

14 Environmental Data Effective Use of Resources Plan This presents data on activities for environmental preservation and creation through construction projects. Items that involve independent assurance report (P20) are marked with a checkmark symbol. Waste recycling rate improvement and proper disposal Do Emissions and recycling rate by construction waste category Unit: 1,000 t Construction waste Civil Building construction engineering New construction Demolition Subtotal Total Recycling rate * Concrete remnants , % Asphalt and concrete remnants % Construction site sludge Mixed waste % Wood scrap % Metal scrap % Miscellaneous % Total ,530 2,236 Construction waste treatment breakdown (excluding sludge and portions of waste not originating in TAISEI) (1,000 t) Sale of valuable materials, wide-area certification, on-site use, etc. 109 Amount generated 1,522 Contracted disposal amount 1,413 Recycling facility 1,173 Intermediate treatment amount 227 Resource recovery amount 1,281 Recycling 197 Direct final disposal amount 14 Recycled amount 1,479 Intermediate treatment residue 30 Final disposal amount 43 Construction waste emissions (1,000 t) 2,500 1,980 (1,509) 2, (17) (168) 1,500 Operating on the Basis of Green Procurement Guidelines Do TAISEI has formulated Green Procurement Guidelines for the purpose of applying materials, equipment, and methods that have less environmental impact during the design, construction, and demolition of structures. Green procurement item categories are reviewed annually. TAISEI s green procurement rate for fiscal 2012 was 30.6% *. One item (energy-saving electric toilet seats) was added to the 76 items in fiscal 2011, making 77 items. In fiscal 2012, 61 of these items were adopted in 65 construction design projects, and the number of items adopted per project came to 9.2 items. Meanwhile, the construction divisions have designated priority items, including ready-mixed concrete using blastfurnace cement, blast-furnace cement, recycled aggregate, slag aggregate, recycled steel (recycled reinforcing bars and steel frame), liquefied stabilized soil, high-efficiency fluorescent light fixtures, and environmentally-friendly thermal insulation. TAISEI is promoting introduction of these items to our construction sites. 1, ,515 (1,323) Resource recovery amount Intermediate treatment amount Direct final disposal amount Figures in parentheses are amounts excluding sludge and portions of waste not originating in TAISEI. 2,236 (1,522) (14) (227) 1,687 (1,275) (14) (109) 1,317 (1,152) 1,228 (828) (9) (89) 879 (730) 1,633 (1,117) (13) (201) 1,116 (903) ,554 (1,281) FY2012 * KPIs P37 Green procurement item adoption results from Eco-Sheet CASBEE Construction-related items Thermally insulated sashes and doors 26 Environmentally friendly thermal insulation 18 Ceramic tile 17 Recycled vinyl flooring 14 Permeable pavement (including water retaining 10 pavement) Recycled gypsum board 8 Recycled carpet tile 8 Sun control film 6 Particle board 5 Lumber and lumber products (laminated wood, 5 plywood, laminated veneer lumber) Paving blocks made with recycled material (burned, 4 plain concrete (PC) products) Primer coating (multilayer anti-corrosion) 4 Building greening (roof greening) 4 Building greening (wall greening) 4 Wood-based cement boards 3 Recycled hot asphalt mixture 3 Highly solar reflective waterproofing 3 Environmentally friendly flooring 2 Low-volatility organic solvent-type water-based 2 coating for pavement marking High solar reflective coating 1 Median blocks made of recycled plastic 1 Facility and equipment-related items Automatic water faucets 49 Western-style toilet bowls (water-saving type) 45 High-efficiency fluorescent light fixtures 42 Automatic flushing devices with built-in urinals (water-saving type) 42 LED light fixtures 42 Electric heat-pump air-conditioning equipment (multi-unit 40 type for large buildings) High-efficiency transformers 29 Solar power systems 13 Stainless steel pipe 11 Environmentally friendly street lighting 9 Absorption chillers/heaters 7 Lead-free electrical wire and cable 6 Inert gas fire extinguishing equipment 5 High-efficiency gas water heaters 5 High-efficiency ventilation equipment 5 Recycled polyvinyl chloride tubing for drainage and ventilation 3 Cardboard ducts 3 High-efficiency pumps 3 Energy-saving electric toilet seats 3 EM (Eco-material) wires and cables 2 Garbage disposal units 2 Gas-engine heat-pump air-conditioners 2 Ice heat storage air conditioners 2 Solar heating systems 1 Structural items Recycled steel 31 Blast-furnace cement 9 High-strength concrete 9 Metal concrete form panels 7 Concrete frames 6 Ready-mixed concrete using blast-furnace cement 4 Recycled aggregate 4 Fly ash cement 3 Slag aggregate 2 Ready-mixed concrete using fly ash cement 1 Eco-cement 1 Fly ash 1 Forms mixed with recycled material 1 Stabilized soil recycled from construction sludge 1 (liquefied stabilized soil) Wall construction method using reduced-slurry soil 1 cement columns in rows Method for rebuilding the road surface 1 * Figures indicate the number of projects. * KPIs P37 13 TAISEI CORPORATE REPORT 2013 DATA BOOK

15 Preservation of Biodiversity and Environmental Preservation ivities Plan Promote education for understanding of TAISEI involvement in biodiversity Conducted two biodiversity e-learning sessions for all employees with a response rate of over 90%. Promote environmental contribution activities Do Conducted activities that included helping create local green areas (Tokyo Greenship ion), helping create nest boxes for dormice, and Shinjuku cleanup activities (Zero Garbage Day), among others. Assisted Animal-pathway & Wildlife Association (a company) that was established to disseminate the results of animal pathway reseach. The TAISEI 1 Ton Club was launched in 2010 as an activity to purchase Kyoto carbon credits (CO2 emissions credits) based on the goal of cutting CO2 emissions. The Club was held again in 2012 based on the goal of carbon dioxide absorption, with employees giving donations to support preservation of the Kamaishi forest and tree planting activities in Borneo. A total of 747 employees donated to Kamaishi forest preservation activities and 675 to Borneo tree planting activities. Do Respond to Environmental Risks Plan Achieve zero environmental law violations Do by improving knowledge of related laws Our worksite environmental patrols, which conduct in-house supervision regarding compliance with environmental laws and regulations at construction sites, conducted a total of 1,214 patrols at 695 construction sites throughout Japan. Patrol findings are shown in the graph. We took correction and prevention measures regarding the findings, and we are working continuously to make improvements. Improve electronic manifest penetration rate Percentages of findings categories (FY2012) Education, training, etc. 32% Do Worksite plans 13% Laws, regulations, etc. 55% Industrial Safety and Health 3% Water Pollution Control 2% Ordinance on Prevention of Health Impairment due to Asbestos 2% Waste Management and Public Cleansing Law 29% Construction Material Recycling 6% Law for Promotion of Effective Utilization of Resources 5% Local regulations 2% Off-road 2% Miscellaneous 4% In the interest of proper disposal of waste material, we are promoting the computerization of paper manifests to prevent mistaken entries and omissions from manifests by emitting business operators, collection and transport business operators, and disposal contractors. We achieved a penetration rate of 85.9% * (civil engineering 79.0% * and construction 88.9% * ) in fiscal KPIs * P37 Proper disposal and rigorous control of spray-on asbestos and construction materials Do containing asbestos We published a notice regarding measures to take in construction work that may cause dispersion of asbestos, and took measures to prevent dispersion of asbestos powder. In addition, we began work to store the results of preliminary surveys on asbestos in demolition and repair work for a period of 40 years. Thoroughgoing implementation of proper disposal and control of contaminated soil Do On the real properties owned by TAISEI for marketing purposes, five surveys were conducted in fiscal 2012 on the basis of the Soil Contamination Countermeasures and other such statutes. There were two cases of countermeasure construction being implemented. Complaints regarding construction sites and our responses Do The main complaints received from neighboring areas regarding environmental at the construction sites of all our branches during fiscal 2012 are as follows, with their content and response measures taken. Breakdown of complaints to construction sites (FY 2012) Type % Content Response measures Noise 43 Complaints about noise from construction work (such as work noise from demolition, use of heavy machinery and generators, and of form placement). Complaints about noise during pile driving. Provide explanations and information to people in the area concerning the schedule and details of the construction work, make every effort to use low-noise, low-vibration heavy equipment, and take noise reduction measures such as using sound-proof sheets. Prohibit thrown placement of forms. Adjust working hours to reduce the amount of work in the daytime producing intense noise. Vibration 14 Complaints about vibration during use of heavy machinery and pile driving. Traffic 6 about parking of construction vehicles. obstruction Complaints about reduced visibility of intersections due to temporary enclosures. Dust 4 Complaints about dust from workyards. Scattering of dust during work on existing connections. Air pollution 4 Complaints about gas emissions from work vehicles. Odors 3 about burnt odors from asphalt waterproofing. Complaints about paint odors and unusual odors from generators during repair work. Explain to nearby residents what work is being done and obtain their consent. Also, take measures to reduce vibrations, such as switching to slightly smaller machines. Request remediation by the vehicle management companies and provide traffic safety education. Change temporary enclosures to clear panels to increase visibility. Perform water-spraying. Clean up workyards and nearby streets. Change the positioning and parking locations of the vehicles to reduce the impact of gas emissions, and ensure thorough use of eco-driving, such as idling stop practice. Explain to nearby residents what work is being done and obtain their consent. Also, take measures to reduce foul odors, such as ventilation with a blower fan. Move generators and take measures, such as conducting work that produces foul odors during breaks. TAISEI CORPORATE REPORT 2013 DATA BOOK 14

16 Environmental Data Improve Environmental Technology Research and Development and Proposal-Making Capability Plan Environmental Impact Items Global Warming Prevention Establishing a Recycling Society Preservation of Biodiversity Local Environmental Issues Hazardous Substances Main Environmental Laws, Regulations, Etc. EMS *1 specifi es environmental laws, regulations, etc. Basic Environment Kyoto Protocol Kyoto Mechanism Outline for Promotion of Efforts to Prevent Global Warming on Promotion of Global Warming Countermeasures Kyoto Protocol Target Attainment Plan on the Rational Use of Energy on the Promotion of New Energy Usage Urban Green Space Conservation Housing Quality Assurance Fluorocarbons Recovery and Destruction Tokyo Metropolitan Ordinance on Environmental Preservation Basic Environment The Basic for Establishing a Sound Material-Cycle Society Law for Promotion of Effective Utilization of Resources Construction Material Recycling Law on Promoting Green Purchasing Waste Management and Public Cleansing Law on Sophisticated Methods of Energy Supply Structure Basic Environment Basic on Biodiversity on the Promotion of Nature Restoration Nature Conservation Natural Parks National Biodiversity Strategy of Japan on Conservation of Endangered Species of Wild Fauna and Flora Invasive Alien Species Urban Green Space Conservation Forest Wildlife Protection and Proper Hunting Landscape Basic Environment Vibration Control Sewerage on Regulation, Etc. of Emissions From Non-road Special Motor Vehicles Air Pollution Control Environmental Impact Assessment on Prevention of Marine Pollution and Maritime Disaster Water Pollution Control Noise Regulation NOx *2 /PM *3 River Purifi cation Tank Basic Environment Soil Contamination Countermeasures on Special Measures Concerning Dioxins Law Concerning Special Measures Against PCB *4 Waste Building Standards Ordinance on Prevention of Health Impairment due to Asbestos PRTR *5 Law Law Concerning Special Measures Against Contamination by Radioactive Materials Planning and Design Planning and design are carried out to optimize environmental friendliness and meet client requirements based on grasp of circumstances at location where construction business is undertaken as well as in surrounding area. Design energy-saving architectural structures Super-Eco buildings T-Façade Air (thin double-skin system) Eco-Sheet CASBEE *6 (CO2 emissions) Carbon Navigator (building CO2 emission planning system) T-SEEK (structure environmental performance evaluation system) Air conditioning and lighting equipment T-Zone Saver (automatic ultra-energy-saving environment control system) T-Personal II (personal environment control technology) Geothermal air-conditioning system using cast-in-place piles North Country Air Conditioning (eco-air-conditioning system for cold climates) T-Breeze Floor System (total fl oor-vented air-conditioning system) T-Soleil 100 (solar lighting system for tall buildings) Original TAISEI LED lighting Miscellaneous Smart thermal/electrical storage system DC powered offi ce BIM and VR *7 coupled functionality Application of renewable energy (solar light, solar heat, wind power generation, etc.) CO2 underground sequestration simulation, CO2 underground sequestrationrelated facilities Zero emissions plans (3Rs of waste) Eco-Sheet CASBEE (green procurement) Long-life design (develop materials, construction methods) T-RESPO construction method (long-period ground motion countermeasure technology) TASMO (next-generation intelligent seismic control *8 system) T-Grid, T.G-WALL, T.T-WALL TASS-fl oor (3D fl oor base isolation system) TASS unit (equipment seismic isolation system for production facilities) Automatic warehouse rack vibration control system T-RESQF (earthquake emergency management system for production facilities) Ultra high-strength concrete construction planning technology TAS-Fine (ultra high-strength thin RC columns) Ductal ultra high-strength fi ber-reinforced concrete (UFC) T-Feels (TAISEI Eco-material comprehensive evaluation system) Resource-saving Eco-friendly concrete T-POP construction method (ultra-light long-span precast concrete beam) CFT construction method (steel-frame construction method using concretefi lled steel tubes for columns) Corrugated air duct (eco-air-conditioning duct made of high-performance corrugated cardboard) TAS-Clean (Clean room air-conditioning unit) Data center construction with cooling by introduction of outside air T-Flexible Clean room, T-Smart Clean room Ecological Planning Landscape design (landscape planning, planning and design of building greening) Planning for harmony with the environment, ecosystem conservation Mitigation, biotope Nature-friendly greening, green space ecology planning Natural environment conservation and disaster mitigation design method using GIS *9 Wetland environment impact assessment Wetland environment restoration Water purifi cation using high-density oxygen water Simplifi ed biodiversity assessment tool *10 Environmental Assessment T-Heats (heat island countermeasure analysis and evaluation system) Low-carbon city block simulator TSounds (comprehensive noise prediction system) T-Diff (air pollution prediction and evaluation system) TWinds-II (building wind prediction and evaluation system) Low-maintenance rooftop greening system using TEPSAM greening foundation TEPSAM Cool Wall (high-tech water sprinkling system) Closed system disposal site Remediation of contaminated soil (volatile organic compounds, petroleum, heavy metals, PCBs, dioxins, etc.) Groundwater remediation Healthful housing plans Soil remediation double-cap insurance Radiation decontamination Execution Noise, vibration, construction waste, and CO2 emissions are limited as much as possible while performing construction work with speed and certainty. Promote CO2 Zero ion, Eco Model projects Carbon Navios (system for projecting CO2 emissions during building construction) Application of energy-saving construction methods Continuous belt conveyor tunnel construction method Harmonica method (large-section divided shield construction method) Upward shield construction method Paving A using Visco-Mix (medium-temperature compound material) Fiber-reinforced ferro concrete segments Improvement of transport methods Reduced transport distance Education in fuel-economical driving (Eco-Drive) Modal shift (surplus soil, industrial waste) Reduce CO2 by shortening construction periods Continuous long-distance boring by shield machine with double bits Adopt energy-saving machines and equipment Electric-powered backhoe, LED lighting, solar power Use biodiesel fuel Zero emission construction (3Rs of waste) Designated worksite with implementation of zeroemissions priority E-DAM (environmental data management system) Recycle wood building materials generated by construction Use tree cuttings for mulch, compost, charcoal Effective use of soil generated by construction (soil stabilization material, etc.) Construction method using reduced-slurry soil cement columns in rows Resource-saving Precasting ultra high-strength concrete Ultra high-strength concrete with 300 N compressive strength Fc 200N precast column application nepre (structures made of precast ferro concrete) C Reuse of existing pilings during building reconstruction Green procurement (fl y ash concrete, etc.) LNG tank dual PC dike Rooftop greening, wall greening, rooftop vegetable gardens E Friendly to raptors and other rare organisms Transplant rare plants Turbid water treatment system using chitosan fl occulant F Local forest creation Bottom sediment purifi cation method Environmentally Friendly Construction Automatic noise and vibration monitoring system Temporary enclosure greening (green curtain, water curtain) Water retaining pavement technology with water supply functionality (cool road) A Underground water reservoir construction method A UD-HOMET construction method (low-noise, lowvibration construction method) Large-diameter curved pipe roof method Application of photocatalytic air purifi er in underground construction ICT-based management technology for dam construction (4D-DIS) Unmanned construction equipment system Tunnel blasting noise reduction system Remediation of contaminated soil (volatile organic compounds, petroleum, heavy metals, PCBs, dioxins, etc.), in-situ remediation Water injection bio-sparging method Biodegradation method Soil remediation method F Groundwater remediation Permeable purifying barrier (Multi-barrier) methodf Guidance regarding MSDS *11 Radiation decontamination *1 Environmental management system *2 Nitrogen oxides *3 Particulate matter *4 Polychlorinated biphenyls *5 Pollutant release and transfer register *6 Comprehensive Assessment System for Building Environment Effi ciency *7 BIM: building information model; VR: virtual reality (both 3D technologies) *8 Commonly referred to as vibration damping because it addresses vibration from wind-induced motion. Here, where it specifi cally refers to seismic motion, it is referred to as seismic control to make it more readily understood. 15 TAISEI CORPORATE REPORT 2013 DATA BOOK

17 A: Taisei Rotec Corporation; B: Taisei-Yuraku Real Estate Co., Ltd.; C: Taisei U-LEC Co., Ltd.; D: Taisei Setsubi Co., Ltd.; E: Taisei Housing Corporation; F: Seiwa Renewal Works Co., Ltd. (As of April 1, 2013) Operation, Renovation, Demolition We engage in earthquake proofi ng to give building structures longer lives, we extend the life of existing structures, and we effi ciently demolish structures. General renovation work Extending building life, installing information telecommunications capability, conversion to barrier free design, conversion to energy-saving design Energy-saving renovation work D Energy management T-Green BEMS T-Carbon Conductor T-Smart Monitor Demand response technology *12 *13 B, D ESCO business Recovery and destruction of fl uorocarbons Recovery of SF6 Application of Research and Development Technology We engage in research and development of methods and technologies related to construction, and push the level of technology up to practical application. Use renewable energy Mega-Solar power generation system Concentrated Solar power generation system Tidal current power generation system Geothermal utilization system CO2 underground sequestration technology Develop liquefi ed CO2 storage facilities Heat-recovering solar battery louvers Light-modulating ceiling system T-Smart Focus (next-generation human detection sensor) Low-carbon city block and city simulator BIM and VR *7 coupled functionality T-Site View (on-site panoramic photography system) Mole navigator (underground location fi nding system using sound waves in the ground) Creation of New Business We create new businesses in the environmental fi eld. Inter-seasonal ice storage air-conditioning system Plant factory with inter-seasonal ice storage airconditioning system Vegetable plant (thin LED grow light unit) Aquarium using artifi cial seawater Methane hydrate gas leak monitoring CO2 underground sequestration (CO2 injection simulation, CO2 transportation) Electric power stabilization by electric power storage evaluation system (NaS battery *14 ) Distributed energy network technology (smart grid, smart city construction) Mega-Solar power generation system using the top of fi nal landfi ll site Wind power generation Zero-emission demolition (3Rs of waste) Conversion (technology to change use of building) Renovation (improving the performance of buildings) Life-extending repair Earthquake resistance, base isolation, seismic vibration control Use of ground fl ex mole method (fl exible boring) for anti-seismic reinforcement of tank conforming to old law Embankment structure anti-seismic reinforcement method Anti-seismic reinforcement F by Post-Head-bar (retrofi tted steel bar reinforcement against shear) Pipe refreshing method (restoration of marine pipes) Measures against liquefaction of existing facilities with the groundwater level lowering method Measures against liquefaction of existing facilities with the WinBLADE method (improved soil mixing method by opening impellers in the ground) Effi cient use of concrete debris TAISEI super concrete T-POP construction method (ultra-light long-span precast concrete beam) Reuse demolished concrete as aggregate Use tree cuttings for charcoal, compost Use dehydrated cake produced after chitosan fl occulant treatment for planting base Produce ethanol from rice straw Business of improving and operating fi nal disposal sites through PFI, DBO *15 Business of restoring fi nal waste disposal sites Business of carbonizing and recycling city waste through PFI Biogas fermentation of domestic animal waste, garbage, and use for electric power generation Methane fermentation without dilution by water Relocation and preservation of historic buildings Inherit and develop local culture Conservation of cultural assets Forest saver project Forest restoration Ecosystem survey following biotope construction Greening plan based on cluster analysis Technology for spraying local wild grasses Purifi cation system using adsorbent and aquatic plants Aquatic environment restoration Restoration of tidal fl ats and Zostera beds Placement and promotion of animal pathways on existing roads Environmentally friendly demolition planning TECOREP system (environmentally friendly method for demolition of very tall buildings) Low-noise, low-vibration work method using wire saw Laser non-slip work method Local environment assessment system Vibration analysis system Forecasting fl oods from localized severe rainstorms Water purifi cation system using photocatalytic air purifi er Drinking water business Remediation of contaminated soil (volatile organic compounds, petroleum, heavy metals, PCBs, dioxins, etc.), in situ remediation Asbestos countermeasures Robot to remove spray-on asbestos inside elevator shafts Asbestos removal in subways using specialized wagon Incinerator demolition system compliant with laws Proper storage of PCBs Radiation decontamination Soil and groundwater remediation Sick house countermeasures Robot to remove spray-on asbestos On-site asbestos abatement detoxifi cation system Radiation decontamination Indoor air pollution prevention In-situ remediation of soil contaminated with benzene/ cyanogen activating microorganisms *9 Geographic information system *10 Assesses effects of creating a space that considers biodiversity by showing the organisms that may potentially visit. *11 Material safety data sheet *12 A system that varies the energy demand to achieve a balance between supply and demand. *13 Business providing comprehensive services including energy-saving proposals, provision of facilities, maintenance, and management. *14 Sodium-sulfur batteries *15 A business method similar to the private fi nance initiative (PFI) in which the public sector takes on fund-raising and contracts design, construction, and operation to the private sector. * KPIs P37 16 TAISEI CORPORATE REPORT 2013 DATA BOOK

18 Environmental Data Comprehensive Environmental ivities Plan Implementation of Eco-Model Projects Do Recipient of 2 Awards from the Minister of Land, Infrastructure, Transport and Tourism for Promoting Reduce, Reuse, Recycle ivities The Midosuji shield construction site (Eco-Model Projects site, Osaka) and Keisei Sugano construction site (Chiba) each received an award from the Minister of Land, Infrastructure, Transport and Tourism for Promoting Reduce, Reuse, Recycle ivities given for active implementation of the three R s (reducing, reusing, and recycling) and ongoing activities. The Midosuji shield construction site was recognized for its ingenious 3R activities utilizing the unique materials and facilities of shield tunnels and activities to reduce CO2 emissions. The Keisei Sugano construction site was recognized for its activities to reduce CO2 emissions by solar power generation and reduction in sludge production using the CRM (Continuous Walls Using Recycled Mud) method. Expansion of Eco-Model Projects Do Overseas In fiscal 2012, we attempted expanding Eco-Model Projects to overseas locations. In Taiwan, we calculated the amount of CO2 emissions at one civil engineering site, three building construction sites, and the office and discovered that the total amount of emissions was approximately 40,000 tons. Assessing the Environmental Load Do Throughout the Supply Chain In fiscal 2012, we joined the CDP Supply Chain Program hosted by CDP, an internationally recognized authority (British NGO). This program involves assessing the volume of carbon dioxide emissions (GHG Protocol, Scope 3) related to TAISEI s business activities at domestic and overseas business partner companies. TAISEI Group Environmental Data Promoting Environmental Management in whole TAISEI Group We analyze material data from seven group companies participating in the TAISEI Group Environmental ion Meeting, including Taisei Rotec Corporation, Taisei-Yuraku Real Estate Co., Ltd., Taisei U-LEC Co., Ltd., Taisei Setsubi Co., Ltd., Taisei Housing Corporation and Seiwa Renewal Works Co., Ltd., and collaborate with them to reduce CO2 emissions and industrial waste as well as save energy. As a five-year plan starting in fiscal 2012, we have also begun work to standardize environmental data collection methods. We are aiming for independent assurance in fiscal Material Flow Group Companies INPUT Unit FY2008 FY2009 FY2010 FY2011 FY2012 Energy Consumption: Total 10 6 MJ 1,775 1,788 1,649 1,762 1,743 Worksites 10 6 MJ Factories 10 6 MJ 1,321 1,327 1,232 1,311 1,302 O f fi c e s 10 6 MJ Fossil Fuel Consumption: Total 1,000kl Light oil 1,000kl Kerosene 1,000kl Heavy oil 1,000kl Gasoline 1,000kl Power Consumption: Total 10 6 kwh Worksites 10 6 kwh Factories 10 6 kwh O f fi c e s 10 6 kwh City gas 10m 3 3,380 2,900 2,590 3,190 2,853 LPG t Water 10m OUTPUT Unit FY2008 FY2009 FY2010 FY2011 FY2012 CO2 Emissions: Total 1,000t-CO Worksites 1,000t-CO Factories 1,000t-CO O f fi c e s 1,000t-CO Industrial waste: Total 1,000t Waste recycled 1,000t Final waste disposal 1,000t Message from an Environmental Manager Yoshiya Kanmuri, Head of the Environmental Safety Department, Taisei U-LEC Co., Ltd. The PC (precast concrete) construction method is an eco-friendly method that uses fewer concrete forms and construction vehicles than previous methods. Our company, that is a pioneer in industrialized residential construction using the PC method, will celebrate 50 years in business this coming August. With the strong determination of the management executives, we successfully used the PC method to reduce gas usage rate by 50%, carbon dioxide rate by 45%, electric power usage by 30%, and industrial waste production by 40% over the past fi ve years. Going forward, we will continue to expand into new technology markets and strive to even further reduce the environmental load. 17 TAISEI CORPORATE REPORT 2013 DATA BOOK

19 Environmental Accounting Do Value of construction work and sales (Fiscal 2012) Civil engineering Building construction Development projects, etc.* TAISEI Corporation (Japan) Value of construction work 199, ,009 Sales 204, ,314 32,500 *Environmental data for development projects is taken from head office and branch offices and has been included in Office below Environmental preservation costs (Millions of yen) Fiscal 2012 Classification Details of Major Initiatives Investment Cost Total Year-on- Year Civil Engineering Building construction Office Total Year-on- Year 1. Environmental Preservation Costs by Business Area 6,066 9, ,935 1,233 (1) Pollution prevention Costs to prevent air pollution, water contamination, noise and costs vibration caused by temporary work at construction sites (2) Environmental Preservation costs (3) Resource recycling costs 2. Upstream and downstream costs 3. Administrative costs 4. R&D costs 5. Social activity costs 6. Environmental remediation costs Total environmental preservation costs Economic effects of environmental preservation measures (ual effects) Costs to recover CFCs and halons, and in purchasing green electricity Waste disposal costs at construction sites, etc., recycling costs, and recovery and disposal costs for asbestos and PCB 5,422 9, ,031 1,756 Personnel and management expenses incurred in taking the environment into account in design and engineering 0 0 1,060 1, Personnel, training and review costs related to EMS, costs for greening around construction sites, regional cooperation, etc ,016 1, Personnel and management expenses for environment-related R&D ,532 1, Donations to environmental NGOs, etc Soil survey and clean-up costs for Company property up for sale ( 27.6 million), as well as cost of repairing land subsidence, roads and neighboring areas ( 600,000) 32 6,106 9,860 3,732 19, Environmental preservation benefits Type of Environmental Fiscal 2012 Environmental Performance Indicator Unit Preservation Benefit Civil Engineering Building construction Office Total Year-on-Year Power Million kwh Environmental preservation Light oil kl ,816 benefits related to resources Kerosene kl ,199 invested in business activities City gas 1,000m Water 1,000m ,663 1,400 CO2 emissions 1,000t-CO Environmental preservation NOx emissions t benefits related to environmental SOx emissions t impact and waste generated from Construction waste 1,000t 706 1,530 2, business operations Construction soil generated 1,000m (amount removed from construction site) 2, ,753 1,036 Environmental preservation benefits related to goods and services produced by business operations* Economic effects of environmental preservation measures (Millions of yen) Economic Effects of Environmental Preservation Measures Total Profit Recycling of waste generated in main business operations 232 Economic effects produced by environmental preservation measures (Estimated effects) Estimated annual CO2 reduction in operations (effect of eco-friendly design) Cost savings Reduction in environmental impact in monetary terms t-co2 20,634 20,634 1,996 * Compared to the 1990 level for buildings to which the Law Concerning the Rational Use of Energy applies; projected emissions are calculated using the CASBEE eco-sheet (Millions of yen) Savings in energy costs in offices due to energy conservation 15 Savings in energy costs at construction sites 404 Savings in waste disposal costs through resource conservation and 2,124 recycling 4 Proportion of environmental R&D costs to total R&D costs (%) (Environmental R&D costs / Total R&D costs) Environmental impact ratio *Only TAISEI-derived impact (kg/ 1 million) (Amount of direct final disposal / Value of construction work) Environmental efficiency ( 1 million/t-co2) (Sales/ CO2 emissions (construction sites and offices)) FY FY FY2012 TAISEI CORPORATE REPORT 2013 DATA BOOK 18

20 Environmental Data Environmental Topics & Environment-related External Evaluation Environmental chronology Date Environment-related Topic 2012 April New administrative employees participated in an environment and social contribution activity to create local green areas May Selected as a Ministry of the Environment Eco First Company Received the Chairman s Award from the Japan Construction Machinery and Construction Association for the TECOREP system Co-sponsored the Japan Pavilion at the United Nations Conference on Sustainable Development (Rio+20) June Began a plan to expand the Technology Center to create a safe, secure, and comfortable space Worked to expand and implement the Goya de eco project nationwide (Association of Subcontractors for Health, Safety, and the Environment) Signed a business collaboration agreement for decontamination work with CH2M HILL, a company with vast experience in decontamination and facility dismantling in American nuclear complexes July Successfully created ultra-high-strength CFT columns made of 780N/mm 2 steel and Fc150N/mm 2 concrete Employees participated in a volunteer activity to create local green areas with the aim of coexisting with the environment Received the Japan Environmental Management Grand Prize for renovation work at Waseda Setsuryo Junior High School and High School (Host: Japan Environmental Management Grand Prize Awards Committee, Mie prefecture). September Exhibited at the Radioactive Decontamination & Radioactive Waste Disposal International Exhibition Exhibited at the Exhibition for Geo-Environmental Restoration General Manager of the Environment Division gave a lecture at United Nations University for the CDP 2012 Debriefi ng October Employees participated in a volunteer activity to create local green areas with the aim of coexisting with the environment Received an award from the Japan Committee for United Nations Decade on Biodiversity for the project to create local green areas November Designed and constructed a disaster mitigation refrigerator-freezer facility in preparation for a tsunami December Exhibited at Eco Products January Held an Exhibition to Commemorate the 140th Anniversary, Passing the torch to the future Started testing energy control technology in a Smart City Implemented the TAISEI 1 Ton Club to support preservation of the Kamaishi forest and tree planting activities in Borneo February Received authorization from the Minister for Eco-friendly high-strength concrete Supported the Gratitude-to Borneo Project Helped build a rescue center, helped install vending machines with a donation function, and assisted in a lecture meeting by Gen Bando, Director of the Asahikawa City Asahiyama Zoo Received commendation from the Japan Federation of Construction Contractors for Pollution Control Measures and Recycling and Proper Disposal of Construction Byproducts Kyushu Branch TAISEI JV Chiwata Tunnel Site March Held volunteer project to create nest boxes for dormice Environment-related external evaluation Recipient of the Watt Sense Award TAISEI was recognized for the CO2 Zero ion and the Eco- Model Projects CO2 reduction activities in construction sites, and received an award of excellence in the action category in the Watt Sense Awards sponsored by the Ministry of the Environment for being a company with outstanding initiatives concerning power conservation and effective use of energy. Recipient of Excellence Award in the Eco Products Awards We received an Excellence Award for Energy-Saving Product in the 9th Eco Products Awards for the Smart DC Office, a system for powering offices in buildings with DC power that is being tested in the Yokohama Smart City Project (YSCP). Named High CDP Disclosure Leader Company Selected as a company with outstanding disclosure for the third consecutive years. Nikkei Environment Management Survey Company Ranking Ranked second in the construction division. TAISEI gained approval in the Ministry of the Environment Eco First System 19 TAISEI CORPORATE REPORT 2013 DATA BOOK

21 Independent Assurance Report TAISEI CORPORATE REPORT 2013 DATA BOOK 20

22 Social Data Consumer Issues Plan (Overall Principles of Conduct) Basic Conceptual Approaches (Overall Management Perspective) Mid-Term Business Plan and Business Issues The TAISEI Group aims to contribute to society as a whole and to develop sustainably as a corporate group. For such purposes, we will continue to provide our customers and society as a whole with ensured quality in our products and services as well as such technologies as necessary for the resolution of social. Strengthening of initiatives and expansion of business fields to create high added value (1) Expand TAISEI QUALITY activities (2) Develop and provide technologies, such as base isolation and vibration control, that help resolve the problems facing society Plan Main Issues and Objectives (FY2012) Do Main Initiative Items (FY2012) Main KPIs* (Key Performance Indicators) Pages Quality Control and Customer Satisfaction Improvement Establishment and observance of quality management standards and procedures Development and provision of technologies for resolving social Customer satisfaction surveys Number of patent applications fi led and granted Amount of media coverage of development of technologies/projects in which technologies were applied P38 P38 * KPI(s): Level of achievement () of Key Performance Indicator(s) and fi scal 2012 improvements () are described on page 38. Quality Control and Customer Satisfaction Improvement Plan Establishment and observance of quality Do management standards and procedures Providing high quality construction products and related services is a TAISEI s key mission. To fulfill this mission, we have established our Quality Policy and use it as a base for our corporate activities. In addition, TAISEI has also developed our own quality management system that has been in operation for many years, and was the first construction company in Japan to acquire ISO 9001 certification in To provide our customers with safe, secure construction products and after-sales service, we have established the quality management system that covers all stages from construction to post-delivery operations. We always keep the manuals and standards required for constructionrelated quality management, which are developed as needed to improve quality management and to keep up with new cutting-edge technology. In 2009, we launched TAISEI QUALITY activities in connection with our quality management system. We pursue activities as a Group based on the three pillars of Increasing Productivity, Increasing Quality and Eliminating Quality Issues, and Fostering an Environment of Dedication to Construction. ➊ Developing human resources that support quality On the job training is provided to young employees in the Civil Engineering Division and the Building Construction Division who will bear the company s future. We also implement an educational support system run by highlyexperienced employees with a wealth of expertise and strong technical skills to develop the workforce. ➋ Increasing customer satisfaction Following the handover of construction products, the head office and branch offices come together to provide whatever technical support is needed, and the different divisions and departments collaborate to provide adequate and timely quality maintenance (after-sales service). To determine the level of customer satisfaction (CS), we hold CS interviews after the handover of construction products (for civil engineering projects) and have customers fill out surveys (for building construction projects). The survey and interview results are reported to the TAISEI QUALITY Committee and efforts are made to ensure quality and increase customer satisfaction. KPIs P38 <Head Office> Civil Engineering Division TAISEI QUALITY Committee / Building Construction Division TAISEI QUALITY Committee Chair: Division General Manager Members: Department General Managers and equivalent Production Tool Innovation Group (Tools) Development of new construction technology and IT productivity tools Quality Improvement Group (HR) Quality training and education programs and elimination of quality Workplace Environment Improvement Group (Environment) Workplace reforms designed to foster an environment of dedication to construction <Branches> TAISEI QUALITY Committees Chair: Branch General Manager Members: Department General Managers and working group leaders Support and promotion Suggestions and reporting Production Tools Innovation Working Group (Tools) Quality improvement Working Group (People) Workplace Environment Improvement Working Group (Environment) [Implementation] at construction sites 21 TAISEI CORPORATE REPORT 2013 DATA BOOK

23 Develop and provide technologies for Do resolving social The TAISEI Group conducts research and development into technology with an emphasis on fundamental technology, new material technology and cutting-edge technology for urban redevelopment, environment and engineering, energy, design and construction. TAISEI s aims are to meet the needs of society and customers and cultivate new markets through technology. We invested 9.0 billion yen in research and development (consolidated amount for fiscal 2012) and actively promoted alliances outside the Company with research institutes such as universities and entities from the same and different industries. We also actively published our technological developments in newspapers, academic articles, and other outside media. We thus endeavor towards living technology that answers the needs of society. KPIs P38 * : Technical release : Event exhibition, etc. Main Media Presentations Reported on exhibition one year after the Great East Japan Earthquake on how to create societies that can withstand disasters (March 26-30, Tokyo) TECOREP system earned the Chairman s Award from the Japan Construction Machinery and Construction Association Method for demolition of very tall buildings that minimizes the environmental impact Developed T-Fogless Flow air conditioning system for endoscopic surgery Prevents fogging of the laparoscope and creates a comfortable and efficient environment for the patient and surgeon Began a plan to expand the Technology Center to create a safe, secure, and comfortable space Construction of new research facilities and enhancement of existing facilities for developing high value-added technology Exhibited at FOOMA JAPAN (International Food Machinery and Technology Exhibition) (June 5-8, Tokyo) Exhibited at the Vietnam International Exhibition of Construction Technology (June 27-29, Hanoi) Signed a business collaboration agreement with U.S. company, CH2M HILL for decontamination work Aiming for reconstruction as early as possible Successfully created ultra-high-strength CFT columns made of 780N/mm 2 steel and Fc150N/mm 2 concrete First application in a high-rise building in the Otemachi 1-6 Project (tentative name) Exhibited at Concrete Techno Plaza 2012 (July 4-6, Hiroshima) Exhibited at the Japan National Conference on Geotechnical Engineering (July 14-16, Aomori) Held an earthquake-proofing Internet seminar on BCM from the viewpoint of resulting events and initiatives for earthquake disaster mitigation Exhibited at RADIEX 2012 (Radioactive Decontamination & Radioactive waste Disposal International Exhibition) (September 24-26, Tokyo) Construction Fair 2012 (September 30 - October 2, Tokyo) Exhibited at Exhibition for Geo-Environmental Restoration 2012 (October 17-19, Tokyo) Exhibited at the Data Center Expo (October 24-26, Chiba) Exhibited at EE Tohoku 12 (October 24-25, Miyagi) Exhibited at Construction Technology Fair 2012 in Chubu (October 25-26, Chubu) Exhibited at a concrete symposium on development of prestressed concrete (October 25-26, Shiga) Designed and constructed a disaster mitigation refrigerator-freezer facility in preparation for a tsunami Protecting buildings and property from a Level 1 tsunami Held BCP drills for the entire TAISEI Group Based on the scenario of an earthquake occurring directly beneath the Tokyo Metropolitan Area Exhibited at the Lifestyle and Technology Construction Fair (November 2-3, Takamatsu) Exhibited at Messe Nagoya 2012 (November 7-10, Nagoya) Exhibited at the Construction Technology Forum (November 8-9, Saitama) Exhibited at Construction Technology Forum 2012 in Hiroshima (November 22-23, Hiroshima) Exhibited at Eco-Products 2012 (December 13-15, Tokyo) Developed an earthquake-resistant device for automated warehouses, and made the decision to install it in the Logistics Center Facilities capable of business continuity following an earthquake Held an Exhibition to Commemorate the 140th Anniversary, Passing the torch to the future (January 21-25, Tokyo) Started testing energy control technology in a Smart City Start of full-scale tests in the Yokohama Smart City Project (YSCP) Received authorization from the Minister for Eco-friendly high-strength concrete First in Japan to be certified for a design basis strength of 80N/mm 2 Developed a tsunami wave-making device that can precisely reproduce a large-scale tsunami Reproduction of tsunami behavior near breakwaters and on shore structures Exhibited at JFMA Forum 2013 (March 12-14, Chiba) TAISEI CORPORATE REPORT 2013 DATA BOOK 22

24 Environmental Data Main Technical and Development Initiatives (Consolidated) Item Category Title Details Example of application Taisei Corporation Group companies Structural Construction Method Materials Disaster prevention Environment ICT Structural Construction Method Environment ICT Others Closed Type Ultra-high Rise Building Demolition Method TAISEI Ecological Reproduction System 300N/mm 2 Class Ultra-high Strength Concrete TAISEI Super-concrete Natural ground prediction system for front of a tunnel cutting face Effective Utilization of Concrete Rubble T-RESPO Method for protecting against long period seismic motions Vibration Control System for Automated Warehouse Racks Tsunami BCP related technology, tsunami wavemaking device Technology for in-situ purification of groundwater contaminated with cyanide Measures against liquefaction Yokohama Smart City Project(YSCP) verification project T-Flexible Cleanroom Field Pad, cloud-linked application - Field Pad Unmanned Construction System Wall type precast concrete construction method (Taisei U-LEC Co., Ltd.) Wall type reinforced concrete housing Palcon Post-Head bar (PHb) construction method (Seiwa Renewal Works) Air conditioning eco-duct Corru-Airduct (Taisei Setsubi Co., Ltd. Three-dimensional machine control system (Taisei Rotec Co., Ltd.) Condominium renewal projects (Taisei-Yuraku Real Estate Co., Ltd.) * Mark on the right of the project name g : Corporate Report 2013 : Corporate Report 2012 : 2012 Securities Report : Technology Center Report (Brochure, web site) A demolition method in which an ultra-high rise building is dismantled so that the dismantled members can be reused New structural method using 300N/mm 2 class ultra-high strength concrete belonging to Advanced concrete technology T-RC + Natural ground prediction system for condition of the ground in front of a tunnel cutting face Technology to reuse concrete rubble generated in earthquakes as hardened cement materials Vibration control method for protecting Ultra high-rise building construction from resonance with long period seismic motions Vibration control device to minimize goods falling from automated warehouse racks Device capable of reproducing the behavior of tsunami around tsunami wave defenses and above ground structures, based on testing and analysis Technology for purification of cyanide compounds in groundwater that are difficult to decompose New ground improvement technology using a 1.2 m diameter wide blade agitation device that can open and close in the ground Verification of comprehensive energy management system as an undertaking in the Ministry of Economy, Trade and Industry s Nextgeneration Energy and Social System Verification Project. Air conditioning and ventilation system that enables the air flow, air cleanliness, temperature, and humidity of clean spaces to be freely set Construction management system for viewing drawing information and change notifications, etc., using a smart device, and automatically registering construction record photographs, by linking to the cloud A system that enables construction by remote operation in severe working sites where humans cannot enter An industrialization method in which floors and walls of a building are produced in the company s factory, transported to site, and assembled Custom-built housing with excellent seismic resistance and durability, by applying Taisei s ultrahigh-rise building construction technology to detached housing A seismic retrofit method in which Post-Headbar shear reinforcement that is anchored with post-construction plates is embedded within structures. Corrugated board ducts using aluminum foil. A joint development of Taisei Corporation, Rengo Co., Ltd., and Kurimoto Ltd. Use of Information and Communication Technology (ICT) in road pavement construction Delicate support ranging from reaching an agreement with the residents regarding condominium block rebuilding, and finding new housing for those that wish to change residence Grand Prince Hotel Akasaka, etc. Underground plaza of Ochanomizu Sola City, etc. Mountain tunneling sites Kamaishi disaster waste disposal Shinjuku Center Building, etc. Kobayashi Kako Co., Ltd. Logistics Center Used in measures against tsunami along coasts and for formulating BCPs Toho Gas Co., Ltd. Development and verification complete, yet to be applied Taisei Technology Center, etc. Electronic device factories, etc. Building construction sites and some civil engineering sites of Taisei Corporation Disaster recovery sites, etc. Published in ( * ) Page P21 P18 No.45 P21 P18 P17 No.45 P21 P17 P19 P18 No.44 P20 P21 P18 No.45 P19 P18 P21 P17 P21 No.45 P22 P18 No.45 P22 P18 P22 P21 No.44 Hulic Court Yukigaya, etc. P23 Detached housing, rental housing, etc. Existing underground structures, water purification works, pump houses, tunnels, etc. Taisei Technology Center, Rengo Co., Ltd., Kyoto factory Introduced into sports facility (tennis courts) construction sites P24 P24 No.44 P23 No.41 P23 OberOfuna Marks Court P24 23 TAISEI CORPORATE REPORT 2013 DATA BOOK

25 NOW Technology for Resilient Urban Development * Reference) Corporate Report 2013 Special Edition P17-P18 A resilient society with resistance and recovery mechanisms is needed and that has the attitude of facing up to natural disasters. In that way even, when threatened by global scale natural phenomena such as climate change, etc., or when an abnormal event such as a fire occurs or toxic material is released, etc., the society is almost unaffected. And even if affected, the impact is limited and does not become a serious situation, and immediately the recovery capability operates to bring about restoration. In order to increase the resilience of society to these threats and abnormal events, here we introduce several of the technologies for resilient urban development from among the research and development being undertaken by Taisei Corporation,. [1] Technologies for recovery from earthquake disasters and to contribute to rebirth of Japan Investigation of surface decontamination methods prior to converting timber materials into chips Development of technologies for effective utilization of concrete rubble generated in the Great East Japan Earthquake Development of tsunami shelters (development of tsunami refuge buildings) Structural schemes and construction of elevated urban plazas Proposal of local area rebirth by converting the upper floors of existing suburban residential complexes into local industrial facilities [2] Technologies to prepare for future earthquakes Simulation of seismic motions Earthquake and wind measurement and monitoring system Prediction of seismic motions in the Tokyo area Seismic disaster prevention system for industrial facilities Seismic risk evaluation system Countermeasures against long period seismic motions for existing ultra high-rise buildings Seismic performance of structural steel column-beam connections subject to long period seismic motions The effect of seismic isolation and vibration control buildings Seismic isolation devices for semiconductor manufacturing plant Concentrated energy absorption type vibration control system Analytical investigation of vibration control of automated warehouse racks Large-scale ceiling construction methods with excellent seismic resistance Structural steel framework seismic retrofit method taking architectural design into consideration Embedded post construction plate shear reinforcement Development of seismic resistant joints that are repairable Tsunami propagation simulation Technology for analysis of internal flooding due to tsunami Methods of removal of salt on agricultural land inundated by tsunami Analysis of ground liquefaction Ground improvement methods as measures against liquefaction Method of seismic retrofit of embankments on liquefied ground Development of measures against liquefaction using the overburden pressure of direct foundations Development of in-ground wide blade type ground agitation and improvement method Unmanned construction system [3] Technologies for achieving a resilient energy system Technology center smart community plan Development of simulation technology for determining a building shape from its sunlight environment Analysis of the internal and external environment and energy of a building using the Low Carbon City Block Simulator Measurement survey of office lighting environment improvement method when saving electricity (From Taisei Technology Center Report No. 45 Technology for Resilient Urban Development Research and Development Initiatives for Recovery from Major Disasters, and to Lead to Regeneration of a Sustainable Japan that is Strengthened against Disasters / Taisei Technology Center Building Engineering Research Institute, Civil Engineering Research Institute, Building Technology Development Department, Civil Engineering Technology Development Department) TAISEI CORPORATE REPORT 2013 DATA BOOK 24

26 Social Data Community Involvement and Development Plan (Overall Principles of Conduct) Basic Conceptual Approaches (Overall Management Perspective) Mid-Term Business Plan and Business Issues TAISEI Group, as a good corporate citizen, will build sound relationships with local communities and promote dialog and harmony with society. We will also contribute to the development of society as a whole. Development/improvement of social infrastructure: Continuous implementation of communitybased activities with local residents Contribution to post-earthquake reconstruction Development/improvement of robust business foundations Plan Main Issues and Objectives (FY2012) Contributions to local communities Do Main Initiative Items (FY2012) Contributions to local communities Expansion of employees volunteer activities (Support activities in disaster-affected areas, etc.) * KPI(s): Level of achievement () of Key Performance Indicator(s) and fi scal 2012 improvements () are described on page 39. Main KPIs* (Key Performance Indicators) Number of activities contributing to society and the environment Number of employees who participated in volunteer activities Pages P39 P39 Contributions to Local Communities Plan Promoting social contribution activities The TAISEI Group works hand-in-hand with a region s people in the fields of local community, environmental preservation, academics and culture. All TAISEI branches and construction sites worldwide play a role. Here, we introduce some of the initiatives being undertaken. Social Contribution ivities (Image) Local community Environment preservation Academics and culture NPO Connections Local Community Do TAISEI Group employees volunteer activities The Taisei Corporation Natural and Historical Environment Fund The Taisei Corporation Natural and Historical Environment Fund was established in In the 20 years since, we have provided aid to a total of 419 groups, including NPOs, in the amount of approximately 15 million annually. Main Recipients of Funding (Last 3 Years) FY2010 Nature Works, and 22 others FY2011 CORE Community Road Empowerment and 25 others FY2012 Animal-pathway and Wildlife Association (company) and 31 others Holding regional contribution activities throughout Japan à Offering tours We offer tours of the Taisei Technology Center (Yokohama) and civil engineering and construction sites nationwide with the aim of ensuring good communication with local communities. à Cooperation with local communities Employees at the Second Tomei Expressway Aokigawa Bridge construction site (Aichi) participated in a sketching contest, cleaning activities, and other events with people from the neighboring community. In recognition of the site s regional exchange efforts, it received letters of appreciation from Tokiwa Elementary School and the Tokiwa east district. à Cooperation with the Ecocap Movement TAISEI cooperated with the NPO Ecocap Movement to Aokigawa sketching contest donate vaccines for about 2,700 children in fiscal à Donated TAISEI Charity Seats Six TAISEI Charity Seat tickets to see a Nippon Ham Fighters baseball game in Hokkaido were donated to the Bureau of the Future of Children in Sapporo that were then distributed to a social welfare organization. à Gold Medal for Merit for 20 years of employee blood donations Every year, employees at the head office and branches donate blood for the Japanese Red Cross Society at the Shinjuku Center Building. We received a Gold Medal for Merit in recognition for 20 consecutive years of blood donation activities. à Gave independence support to physically and mentally challenged The Technology Center supports the independence of physically and mentally challenged by allowing use of the company cafeteria each Wednesday for practical training in face-to-face bread selling by people from the Hikari Higashitotsuka Community ivity Home. à International goodwill cooperation Employees stationed in Sri Lanka assisted as volunteers in the construction of the country s first baseball stadium from the planning stages including drafting of the preliminary design. With the support of Grant Assistance for Cultural Grassroots Projects from the Japanese Government, the stadium was completed in The same year, a friendly match was held at the stadium between Japanese high school students and a select team of Sri Lankan players as an event to commemorate 60 years of diplomatic relations between the two countries. Employee volunteer activities to support areas affected by the Great East Japan Earthquake Following activities in fiscal 2011, employee volunteer activities * were held again from April to June 2012, hosted by the Employees Association in Ishinomaki, Miyagi prefecture that was destroyed in the earthquake. As many as 119 employees participated. KPIs * P39 25 TAISEI CORPORATE REPORT 2013 DATA BOOK

27 Environmental Preservation Do Academics and Culture Do Participated in activities to create local green areas TAISEI participates in the Tokyo Greenship ion initiative run by the Bureau of Environment to preserve the remaining local green areas in Tokyo through cooperation with local environmental groups, NPOs, and businesses. A total of 71 people participated from among employees and their family members in activities carried out on July 14 and October 20. In addition, an environmental volunteer workshop was held on April 26 for new employees, with 34 people participating. Supported the Animal-pathway and Wildlife Association A total of 52 people from among employees and their family members participated * in volunteer activities to make nest boxes for dormice in an effort to support the Animal-pathway and Wildlife Association in its aim to protect the Japanese dormouse, a tiny tree mammal that lives in the forests. Making nest boxes for dormice Cooperated with the Gratitude-to Borneo Project à Making donations through vending machines with a donation function Through vending machines installed at branches and construction sites, TAISEI supports a project to protect wildlife in Borneo that is being carried out by The NPO Borneo Conservation Trust (BCT) Japan with the help of Gen Bando, director of the Asahiyama Zoo. A total of around 3.5 million yen was donated in à Lecture meeting on building wildlife rescue centers On February 15, 2013, TAISEI assisted in a lecture meeting at the head office by Gen Bando, Director of the Asahikawa City Asahiyama Zoo on the Gratitude-to Borneo Project promoted by the NPO BCT Japan. TAISEI provided expertise on rescue center building construction for the project. Expansion of the Goya de Eco project The TAISEI Association of Subcontractors for Health, Safety, and the Environment implemented the Goya de eco project at construction sites nationwide as one measure to prevent global warming. KPIs * P39 GALERIE TAISEI activities GALERIE TAISEI (Yokohama) celebrates the achievements of Le Corbusier ( ), one of the most prominent architects of the 20th century. For fiscal 2012, an exhibition on Le Corbusier and World Heritage Residential Architecture was opened in June. The exhibition (Photo: Masaaki Aihara) Cooperation with private company training of teachers TAISEI cooperates with a private business training program for teachers by the Japan Institute for Social and Economic Affairs. In fiscal 2012, tours were given of various TAISEI facilities for 3 days from August 1 to teachers from schools in Machida, Tokyo, and dialogues were held between the teachers and employees to exchange ideas and opinions. The program is held each year with the aim of providing teachers with experience that can be used in the classroom. Held a special lecture at Yokohama National University (YNU) The Technology Center sends an instructor to YNU every year. A lecture is given 12 times a year for 3rd year students and higher in the College of Engineering Science on the subject of The Latest Trends and Social Contribution in Construction Technology. Examples of other activities TAISEI provides annual financial assistance to the Okura Cultural Foundation, which runs the Okura Museum of Art (Japan s first private art museum). Okura Museum of Art TOPICS Entrusted works of art to the National Museum of Western Art and cooperated in a special exhibition The National Museum of Western Art is the only building in Japan designed by Le Corbusier, and is designated as an important cultural property of Japan. Sharing the architectural principles held by Le Corbusier, TAISEI entrusted a portion of its vast collection of his pieces to the Museum with the hope of introducing his achievements to a wide audience. The National Museum of Western Art will also hold an exhibition Le Corbusier and 20th Century Art from August to November, 2013, for which TAISEI has been providing special cooperation from the planning stages. The exhibition is centered around 60 or so paintings and sculptures from the TAISEI collection. It introduces the achievements of the Le Corbusier as an artist and also features pieces by other artists of the same period, such as Picasso and Léger. Still life (1953) TAISEI CORPORATE REPORT 2013 DATA BOOK 26

28 Social Data Human Rights and Labor Practices Plan (Overall Principles of Conduct) Basic Conceptual Approaches (Overall Management Perspective) Mid-Term Business Plan and Business Issues TAISEI aims to create an open corporate culture that advocates respect for basic human rights and diversity. It is our basic policy that we will not tolerate any form of discrimination on the basis of race, religion, gender, nationality, social status, physical condition or other grounds and that we comply with the laws and regulations of local communities and respect local cultures and customs in our overseas operations. Development/improvement of robust business foundations (1) Strengthen human resources and promote diversity (2) Create a system that maximizes employee potential Plan Main Issues and Objectives (FY2012) Respect for human rights Creating a pleasant work environment Support for employees career development Do Main Initiative Items (FY2012) Human rights awareness raising activities Promotion of diversity Support for work-life balance Promotion of personnel training Main KPIs* (Key Performance Indicators) Rate of attendance in human rights training Number of participants in education and training for female leaders / Number of female managers / Number of female executives / Physically and mentally challenged employment rate / Number of re-employed individuals Number of employees taking childcare leave Rate of paid leave utilization Number of former employees registered with the Job- Return system Training hours per employee Number of trainees at overseas construction sites Number of trainees at overseas research institutes, etc. * KPI(s): Level of achievement () of Key Performance Indicator(s) and fi scal 2012 improvements () are described on page Pages P39 P39 to P40 P40 Respect for Human Rights Plan Respect for human rights and diversity Do TAISEI respects the Universal Declaration of Human Rights and the 8 Fundamental Conventions by the ILO, and has articulated in the TAISEI Group ion Guidelines its commitment to respecting basic human rights and diversity. We have indicated in our policy that we will reject discriminatory treatment and will respect local cultures and customs outside Japan and have shown this policy to all employees. We also prohibit child labor, forced labor, and discrimination in respect to employment and occupation, and we guarantee freedom of association and the right to collective bargaining. Promotion system for human rights Do awareness TAISEI established the TAISEI Human Rights Awareness Committee in 1984 to support the character formation of personnel and the development of employees with high awareness of human rights. This committee, chaired by the executive in charge of human resources with the general manager of the personnel department as the vice-chair, annually formulates basic policy and action plans and reports the results of the previous year. We also assign a member of the committee to each division in the head office and every branch, in order to create a promotion and implementation system that spreads human rights awareness raising and education throughout the company. Human rights awareness raising activities Do Under the slogan Aiming at a friendly and supportive society in which all people lead vibrant lives, the TAISEI Human Rights Awareness Committee attempts to disseminate awareness of respect for human rights to all employees. ➊ Promoting human rights education TAISEI carries out human rights training as an integral part of its company-wide basic education scheme provided to all employees in group training sessions designed for each organizational level or division. The basic position in our human rights training* is to respect every employee s independence, encouraging them to think, learn, and act on their own initiative rather than merely instructing them to memorize what is taught. We also held several lectures and workshops with outside instructors for Human Rights Awareness Committee members nationwide. * KPIs P39 ➋ Publishing of a human rights handbook TAISEI publishes a Human Rights Handbook every year as supplementary material for its training. We also solicited human rights slogans and essays from throughout the Company in connection with Human Rights Week in December. ➌ Establishment of an internal hotline TAISEI has established an internal hotline to provide advice and resolve problems regarding human rights, and sexual and power harassment at an early stage. Moreover, another hotline has been set up to report violations. Through this system, we can investigate the facts and make efforts to prevent similar violations, including requesting related divisions to take corrective action where necessary, without infringing the whistleblower s rights. ➍ Human rights in the supply chain In April, TAISEI established a Procurement Policy that stipulates a commitment to human rights, in order to promote consideration for human rights throughout the supply chain. 27 TAISEI CORPORATE REPORT 2013 DATA BOOK

29 Creating a Great Place to Work Plan Promotion of diversity Recognizing that it is important to provide a place where diverse personnel can work energetically in order to vitalize our Company, we are putting effort into creating workplace environments in which diverse employees can maximize their potential. ➊ Encouraging female employees to play an active role in operations TAISEI has been increasing recruitment of women, and in recent years women have come to account for about 20% of its employment of new graduates. We are also putting effort into expanding the range of work open to women and conduct female leader development training. The number of female employees in construction projects and sales divisions, typically maledominated areas, is increasing, and we now also have female officers *. * KPIs P39 VOICE I play an active role as a structural designer. Yumi Suzuki, Group Manager, Seismic Engineering Group, Design Division I am an expert in seismic retrofi tting and base isolation retrofi tting. I make efforts to increase the value of old buildings and make it possible to keep using them for a long time. ➋ Opportunities and support for the physically and mentally challenged TAISEI is committed to employment promotion* aimed at creating a society in which the physically and mentally challenged can play active roles. We also conduct training for skills development and provide information to encourage understanding among other employees. * KPIs P39 ➌ Promoting employment of middle-aged and older people and recruitment of foreign personnel We have prepared a re-employment system* to create a workplace that allows employees who are experienced and skilled to work for TAISEI again after their mandatory retirement. Moreover, we have expanded our re-employed personnel systems, including the introduction of a meister system (in the architectural field) and an education support system (in the civil engineering field) to create an environment where veteran men and women with know-how and advanced technical skills can work with satisfaction even after mandatory retirement and hand down their skills and knowledge gained through long experience to the next generation. Additionally, we actively recruit foreign personnel, including through recruitment seminars for international students, in an effort to secure diverse human resources. * KPIs P39 ➍ Dialogue with the employee union TAISEI conducts questionnaire surveys and holds various dialogues between management and labor every year to facilitate smooth business operations. Do Support for work-life balance Do TAISEI is committed to creating an environment where all employees can work energetically with satisfaction, by accepting diversity, and balancing and enhancing work and personal life. ➊ Programs to support balance between work and nursing/childcare TAISEI offers various programs to support different work styles. In addition to introducing programs, we also offer seminars and supply information to encourage employees to start preparing early for nursing care and to review their working styles in light of the aging of the population. We also hold meetings for employees on childcare leave* to ensure a smooth return to work. As a result, awareness of balance between work style and nursing/childcare has improved, and the usage rate of each system is increasing. KPIs * P40 Main work-life balance support programs Nursing care leave Family care leave program Spouse maternity leave Fertility treatment leave program Childcare leave program Nursing leave Relocation program (makes it possible to relocate away from where one was hired) Short-hours programs (four types) Job-return system (for former employees who had to leave out of necessity to return to work) Program to move working hours up or down ➋ Promotion of leave and shortening of work hours To encourage employees to take annual paid holidays, TAISEI introduced a new paid holiday system that includes half-day and hourly paid time-off. We also offer other holiday systems that include refresher holidays, milestone holidays, and volunteer days off for social contribution activities. Furthermore, to reduce total working hours, we designate two months of shortened working hours per year, and every Wednesday as a no-overtime day throughout TAISEI. We also conduct time management training for managers, using case studies of efforts to reduce working hours, to enhance management capabilities. ➌ Promotion of mental health care TAISEI strives to reduce the mental, emotional and physical stress of employees and their families through the introduction of an EAP. TOPICS Kurumin Mark acquired for third time Following on from 2007 and 2009, in 2012 TAISEI once again received the Kurumin Mark from the Ministry of Health, Labour and Welfare in recognition of its efforts and results in supporting childcare. TAISEI CORPORATE REPORT 2013 DATA BOOK 28

30 Social Data Support for Employees Career Development Plan Promotion of human resources Do development We plan and implement many kinds of training for employees in order to foster autonomous independent human resources with specialized skills that embody the TAISEI Spirit of Commitment to Openness, Creation of Value, and Evolution of Traditions. We also support the acquisition of qualifications. ➊ Training system We offer a variety of integrated training * for employees after entering TAISEI in order to develop autonomous independent human resources with specialized skills, originality, and creativity. * KPIs P40 New recruit ~ early 30s Early 30s ~ mid 40s Mid 40s ~ Retirement Training for new recruits OJT and annual young persons training Overseas training Step-up training for managerial positions Management training for employees promoted to managers Divisional training (sponsored by every division branch) Self-development and company support for language and qualification acquisition Compliance training, human rights training High-level executive training ➌ Development of global human resources TAISEI has prepared a series of professional education programs that start with new recruits and then continue from an employee s 3rd through 12th year in the Company. Training outside the Company We send employees to universities, design offices, research institutes, and other places in and outside Japan to acquire knowledge and skills they cannot obtain in the Company. As of April 1, 2013, 11 employees were trainees outside the Company. Training before an overseas assignment We provide pre-departure training to employees who are scheduled to go on an overseas assignment. These employees learn basic practical knowledge such as an overview of the host country, contract management related to overseas construction, and crisis management, as well as mental preparation for being an expatriate. Training at overseas construction sites We provide training at overseas construction sites for six months to facilitate the acquisition of negotiating abilities, understanding of different cultures, and language skills through overseas work experience, in order to develop project managers who can operate successfully overseas. About 140 people have participated in this overseas construction site training * since it started in fiscal In fiscal 2012, 16 employees were sent to nine countries including Turkey, Vietnam, and Sri Lanka. KPIs * P40 ➋ Support for qualification acquisition We support employees throughout the Company in their endeavors to acquire qualifications, in order to develop engineers and managers with specialist knowledge. Example of qualification acquisition Construction works Civil engineering works First-class qualifi ed architect Professional engineer First-class building operation First-class civil engineering and management engineer works execution managing First-class plumbing work engineer operation and management Concrete engineer and chief engineer engineer Design (qualified) International First-class architect Licensed architect First-class architect (structural Professional engineer design) Project management First-class architect (facility professional design) APEC architect / engineer Urban Development Engineering ARES certifi ed master Professional engineer Redevelopment planner First-class building operation Professional engineer and management engineer First-class electrical work operation and management engineer Business Administrative Construction accountant Registered real-estate broker : Countries to which employees have been sent for construction site training since fiscal TAISEI CORPORATE REPORT 2013 DATA BOOK

31 Labor Practices Plan (Overall Principles of Conduct) Basic Conceptual Approaches (Overall Management Perspective) Mid-Term Business Plan and Business Issues TAISEI s basic concept on our Health and Safety Policy is that all work-related accidents are preventable. Safety must be our top priority as a member of the construction industry. To this end, we call for a safetyfi rst posture in the workplace, endeavoring to provide a safe, anxiety-free working environment. Development/improvement of robust Establishment of safety-fi rst posture business foundations Plan Main Issues and Objectives (FY2012) Thorough occupational health and safety management & cooperation with the TAISEI Association of Subcontractors for Health, Safety, and the Environment Do Main Initiative Items (FY2012) Continuous practice and improvement of TAISEI OHSMS * KPI(s): Level of achievement () of Key Performance Indicator(s) and fi scal 2012 improvements () are described on page 41. Main KPIs* (Key Performance Indicators) Number of fatal accidents and frequency rate Thorough Occupational Health and Safety Management & Cooperation with Plan the TAISEI Association of Subcontractors for Health, Safety, and the Environment Pages P41 Improving safety and health through Do the TAISEI OHSMS In line with our safety-first attitude, we have operated the TAISEI Occupational Health and Safety Management System (TAISEI OHSMS) company-wide since 2001, in order to continuously increase our level of health and safety management with the aim of eliminating accidents and disasters and preventing disasters to third parties. The TAISEI OHSMS is based on health and safety management methods and knowhow we have developed over many years. On top of this system, we steadily go through the P-D-C-A (plan, do, check, act) cycle in an attempt to prevent accidents and disasters. Specifically, in line with the Health and Safety Policy laid out by the president, we formulate a Health and Safety Management Policy that contains annual priority items to be addressed. Branches and construction sites prepare and implement health and safety management plans based on this Policy. Patrols are conducted to verify that the items in the Health and Safety Management Policy have been properly implemented. By analyzing the results of audits conducted by the head office s Safety Administration Department and the causes and background to disasters that have occurred at construction sites, we continuously implement measures adapted to the trends in disasters in an effort to prevent them. Specific causes of danger and harm and specific items to be addressed Accident information database Accident investigation and analytical information Head office Health and Safety Management policy President s Health and Safety Policy Central Safety Committee Targets ion priorities Management priorities, other (Guidance) Accident analysis Prevention of reoccurrence Branches Branch Health and Safety Management Plan Branch Safety Committee Branch targets ion priorities Head office plan Branch action plan (Warning) (Guidance) Accident analysis Prevention of reoccurrence Construction sites Construction Health and Safety Plan Construction Site Manager s Management Policy Implementation and operation Implementation and operation Implementation and operation (Warning) Accident response Internal audits/guidance Construction site patrols On-site inspections/remediation Records/storage System review Records/storage Health and Safety Management Policy Health and Safety Management Plan Emergency Response Plan Basic Construction Work Plan Records/storage Construction site patrols by the president Aiming to eliminate accidents and disasters, top management conducts safety patrols at construction sites. This helps to convey the strong intention of the top management to The president on patrol ensure safety among all employees and construction site workers. Supporting safety education at specialty construction operators In cooperation with the TAISEI Association of Subcontractors for Health, Safety, and the Environment, which consists of specialty construction firms throughout Japan, TAISEI aims to eliminate accidents and disasters as well as protect the environment. Association members participate in health and safety management conferences held by TAISEI and make use of the Company s publications and collections of accident examples as education and guidance tools for their own health and safety management systems. In this way, TAISEI helps to prevent accidents and disasters at subcontractors as well. Safety record TAISEI s safety record is following a downward trend thanks to thorough occupational health and safety management. In 2012, the frequency rate of accidents was 0.81 *. KPIs * P41 TOPICS Earned Outstanding Performance Award from the Ministry of Health, Labour and Welfare The following construction site earned the FY2012 Ministry of Health, Labour and Welfare Award in the category of Outstanding Performance by a Workplace, Group or Individual in Health and Safety: Shonan C-X A-1 District SC New Construction Project TAISEI CORPORATE REPORT 2013 DATA BOOK 30

32 Governance Data Fair Business Practice Plan (Overall Principles of Conduct) Basic Conceptual Approaches (Overall Management Perspective) Mid-Term Business Plan and Business Issues TAISEI recognizes corporate ethics and compliance as the fundamentals of our business operations. We not only make this clear in our ion Guidelines to TAISEI personnel and the TAISEI Group as a whole, but also engage in a variety of measures to encourage self control and self-awareness of each and every executive and employee on this matter. Development/improvement of robust business foundations Strengthening of compliance and ICT governance Plan Do Main Issues and Main Initiative Items (FY2012) Objectives (FY2012) Main KPIs (Key Performance Indicators)* Pages Promoting compliance Ongoing implementation of Rate of participation in compliance training compliance training (Group training) P41 Number of branches conducting compliance training for subcontractors Supply Chain Management Promoting CSR procurement (to be set in FY2013) Protection management and use of intellectual property Information security measures Intellectual property risk management initiatives Protection and management of information Increasing awareness of information security * KPI(s): Level of achievement () of Key Performance Indicator(s) and fi scal 2012 improvements () are described on page 41. Promoting Compliance Plan Number of training sessions on intellectual property rights Number of major information security breaches Number of company-wide education programs regarding information security P41 P41 Establishment of a Compliance Committee and promotion system TAISEI has established a Compliance Committee composed of seven members (two outside experts and five company directors) chaired by an outside expert as an advisory body for the president. The committee, which meets several times per year as needed, compiles reports on specific initiatives pertaining to compliance promotion. It also exchanges opinions on the implementation of compliance training and on training plans, takes opinions and suggestions from outside experts, and attempts to enforce the observance of laws and regulations. We have also developed an internal system for promoting and implementing company-wide compliance awareness-raising and education by assigning managers, promoters, and implementers in each division with the president at the top. Administrative structure Head Office Business Administration Div. CP General Manager CP General Promoter (Business Administration Div. (General Affairs Dept. General Manager) General Manager) Implementation Structure President Head Office Division CP Manager (Corporate General Manager, Division General Manager) Division CP Promoter (General Manager In Charge of Administration) CP Implementers (All Department General Managers) All Executives and Employees Secretariat CP Committee CP Promotion Section Business Divisions and Branches Division CP Manager (Business Division General Manager, Branch Manager) Division CP Promoter (Administrative Manager) CP Implementers (All Department General Managers) All Executives and Employees Ongoing implementation of compliance Do training TAISEI uses group training and compliance news in training and awareness-raising, in order to promote the dissemination and establishment of compliance awareness. Group trainings * are conducted in small-group discussion format to inform all employees of the laws and regulations related to their actual works, based on topics related to day-to-day work (conducted three times in fiscal 2012). KPIs * P41 Additionally, we publish columns that take up a wide variety of familiar and topical compliance-related as a monthly compliance communication on our intranet in an effort to raise the awareness of executives and employees. We also actively provide training materials to TAISEI Group companies, ensuring that the TAISEI Group functions as an integrated entity in promoting compliance. Compliance training for subcontractors Do TAISEI conducts annual compliance training * for the proprietors of subcontractors at TAISEI s Occupational Health and Safety Convention. KPIs * P41 * CP: Compliance * Compliance Promotion Section: Serves as the secretariat for the Compliance Committee and promotes dissemination and establishment of compliance awareness among executives and employees. * Compliance implementer: All department general managers are designated as compliance implementers; they implement awareness-raising and education on compliance for all executives and employees in their department. 31 TAISEI CORPORATE REPORT 2013 DATA BOOK

33 Corporate ethics helpline Do TAISEI has developed a Corporate Ethics Helpline as an internal whistleblowing system to report violations of laws and regulations and the TAISEI Group ion Guidelines. It also established an outside hotline in an attorney s office. We inform executives and employees of the hotlines through whistleblowing and consultation menu items on the company intranet and posters. We have also spread the word by posting handling methods and other information on the TAISEI website for whistleblowing by employees of subcontractors who are in a direct transaction relationship with TAISEI. In addition, we have established a Group Helpline for the 20 group companies in Japan as part of our compliance system. Establishing a system for ensuring Do appropriateness of bidding practices and determining the status of observance Branch managers check to make sure bidding practices are conducted appropriately, and we operate an internal system for preparing and storing those confirmation records. Also, every year the Legal Department conducts a study to determine the appropriateness of the bidding practices of all branches and their status of observance of the Construction Contractors Law and the against Delay in Payment of Subcontract Proceeds, Etc. to Subcontractors. Requiring reporting of serious legal Do violations TAISEI requires executives and employees to report to the company if they know that they themselves or another officer or employee has or is trying to commit a legal violation that could cause serious detriment to the company (e.g., temporarily barred from public bidding, suspension of business). Supply Chain Management Plan Establishment of a procurement policy Do TAISEI established a Procurement Policy in April 2013 with the aim of fulfilling its CSR throughout the supply chain, in order to help create a sustainable society. We developed Procurement Guidelines based on this policy and will pursue CSR procurement through the establishment of good partnerships with suppliers. Procurement Policy (excerpt) Under the TAISEI Group Ideal, create a vibrant environment for all members of society, we are committed to carrying out our procurement activities in accordance with this Procurement Policy in order to create safe and attractive spaces, as well as work and living environments of exceptional value, with the aim of providing products and services that are in harmony with nature. 1. Compliance with Laws, Regulations and Social Norms 2. Fair Business Dealings 3. Respect for Human Rights 4. Promotion of Safety and Hygiene 5. Commitment to Environmental Conservation 6. Ensuring and Improving Safety and Quality 7. Information Disclosure 8. Commitment to Information Security 9. ivities Contributing to Society 10. Business Continuity in Times of Disaster 11. Promotion of CSR (Corporate Social Responsibility) Procurement Internal Study Session on CSR Do Procurement TAISEI held a CSR procurement study session for about 50 CSR personnel from each division and six main group companies, in order to give them an understanding of the significance and purpose of TAISEI s efforts to address CSR together with suppliers. The participants deepened their understanding of the fact that, within action toward the supply chain required by ISO 26000, it is important for TAISEI to work on CSR with all relevant suppliers, not just by itself, in order to help achieve sustainable social development. Promoting CSR procurement Do In March 2013, TAISEI launched a CSR Procurement Council composed of the Safety Administration Division, Building Construction Division, Civil Engineering Division, Procurement Division, Corporate Planning Department, and the Corporate Communication Department s CSR Promotion Office, in order to disseminate CSR initiatives in the supply chain. The council will develop Procurement Guidelines and promote CSR activities with suppliers. TAISEI CORPORATE REPORT 2013 DATA BOOK 32

34 Governance Data Protection Management and Use of Intellectual Property Plan Intellectual property risk management Do initiatives Disputes over intellectual property involving the infringement of patents and other rights are increasing in the construction industry. It is therefore necessary to enhance intellectual property risk management, in the areas such as dispute management and prevention of technology outflow. Based on our Intellectual Property Guidelines, TAISEI promotes corporate management with a focus on intellectual property, and we strategically manage and utilize the full range of intellectual property, including copyright and construction business expertise, in addition to patents. From the perspective of trademark strategy, we appropriately manage product brands used in the names of individual technologies and services, increasing recognition and credibility for customers, society, shareholders, and other stakeholders, in an attempt to increase our corporate brand value. In fiscal 2012, we provided an intellectual property course * for personnel from technology sections and branch site administration departments and made every effort to enhance the level of intellectual property capabilities throughout the organization, with views toward increasing awareness of intellectual property and toward human resources development. We also conducted activities to uncover inventions and discover and survey the infringement of other companies patented technologies at main construction site offices. KPIs * P41 Future actions We will continue awareness-raising activities to ensure that all employees possess a fundamental awareness of intellectual property and to prevent the infringement of other companies intellectual property, including conducting trainings for our Marketing & Sales and Business Administration Divisions aimed at the acquisition of fundamental knowledge of intellectual property and providing e-learning programs and distributing information concerning intellectual property risks to all employees. Information Security Measures Plan Establishment of Taisei-SIRT Do TAISEI established Taisei-SIRT, which is an in-house Computer Security Incident Response Team (CSIRT), in order to reinforce its preventive measures against damage from electronic information security incidents and its emergency response system. On March 1, TAISEI joined the Nippon CSIRT Association. Taisei-SIRT shares information and cooperates with other in-house CSIRT in Japan to conduct activities to prevent damage from electronic information security incidents and to respond quickly to stop the spread of damage if an incident occurs. TAISEI will continue striving to reinforce its electronic information security response system, in order to provide security and safety that live up to the trust of its customers. Background TAISEI has always taken a variety of security measures and undertaken awareness-raising activities to protect customers information assets, corporate networks, and executives and employees from computer crime and cyber attacks in today s highly information-based society. Nevertheless, with increasingly more advanced cyber attacks and complicated information security incidents occurring frequently, recently it has become difficult to completely defend against these incidents with conventional measures alone. Accordingly, it is more important than ever to develop an emergency response system in case of information security incidents to prevent the spread of damage from incidents and restore services as quickly as possible. Moreover, requests from the government and corporate clients to reinforce information security systems have been increasing, which made the strengthening of our electronic information security responses system a pressing task. Strengthening our electronic information security responses system Improvement of the level of company-wide electronic information security and the establishment of a specialized organization that can take emergency responses in the event of an electronic information security incident further strengthens the electronic information security response system, including the determent of incidents and rapid responses during an incident. Taisei-SIRT is composed of engineers from Taisei Corporation and its group company Taisei Information System Co., Ltd. The functions provided, incident response process, and organization were developed and standardized with advice from Japan Computer Emergency Response Team Coordination Center (JPCERT/CC) and members of the Nippon CSIRT Association. 33 TAISEI CORPORATE REPORT 2013 DATA BOOK

35 Information protection and Do management Under the slogan Safety First Applies to ICT Too! we are aiming, together with business partners such as subcontractors, to achieve a zero level of information security breaches *. KPIs * P41 Thorough measures to prevent information leaks Out of the many IT devices within the company, we regard computers, USB memory sticks, and external hard drives as devices with an especially high risk of information leaks. Accordingly, we have reinforced management rules and taken technical countermeasures. We have installed encryption software on computers that encrypts the entire internal hard disk. We prohibit the use of personal USB memory sticks and external hard drives at work and enforce the use of only products that are automatically encrypted. Further, in order to reinforce management, we have appointed people in charge of the management of different devices and periodically take full company-wide inventory counts to confirm the whereabouts of all devices every year. Initiatives aimed at the entire construction industry Together with a security vendor, TAISEI has jointly developed a computer security diagnostic website that it has made freely available on the Internet, where partner companies and anyone can use the site to easily determine whether they have antivirus software running and whether they have file-sharing software installed. We also operate an Information Management System Ledger using a website shared by construction sites (Construction Site Net), in order to ensure thorough management of customer information by partner companies. Nowadays it is not possible for a single company to completely handle information security countermeasures alone. By providing these systems to and jointly using them with companies that we do business with and other companies in the industry, we aim to increase the level of information security not only at TAISEI but also throughout the construction industry. Increasing awareness of information Do security Increasing awareness of information security among executives and employees is an important information security measure, and we think that ongoing education for all executives and employees is therefore essential. We regularly provide executives and employees with education, including knowledge related to information security and clear specification of internal regulations and rules, with the aim of increasing awareness of information security among all executives and employees. Information security pocketbook We have put the rules that all executives and employees should observe at the bare minimum together into an Information Security Pocketbook. We use this guidebook to continuously provide education to all executives and employees and group training to new hires and mid-career workers. We have also created a pocketbook specifically for subcontractors and other partner companies. By explaining the content of this pocket book at orientations for persons entering construction sites, meetings of disaster prevention councils, and other venues, we are able to also provide education and guidance to partner companies. Information security website We have created a website on our company intranet that brings together content related to information security. It includes internal regulations and rules pertaining to information security, past notifications and education content as well as techniques for preventing information leaks. We strive to increase the awareness of executives and employees by making this website available so that they can acquire information security knowledge on a daily basis. Education for all employees through e-learning programs We continuously conduct e-learning programs * on information security several times per year, in order to ensure all executives and employees are informed about information security. We make every effort to prevent information security breaches by providing timely education focusing on the content of common information security breaches and how to handle them and other topics related to information security. Moreover, we also use e-learning programs to explain changes in rules relating to information security and newly introduced systems (tools), and this has had a big effect on steadily informing executives and employees of important content. KPIs * P41 TAISEI CORPORATE REPORT 2013 DATA BOOK 34

36 Governance Data Organizational Governance Plan (Overall Principles of Conduct) Basic Conceptual Approaches (Overall Management Perspective) Mid-Term Business Plan and Business Issues In order to earn and maintain the trust of society and also to realize sustainable corporate development, our fundamental corporate governance policy relies on swift, appropriate, fair, and transparent decisionmaking by management. Development/improvement of robust business foundations Enhancement of internal controls throughout the TAISEI Group Plan Main Issues and Objectives (FY2012) Corporate governance and internal controls Do Main Initiative Items (FY2012) Dissemination and establishment of the TAISEI Group Ideal Structure of Values and Policies Main KPIs* (Key Performance Indicators) Rate of TAISEI Group Ideal e-learning implementation Pages P42 Risk management BCP initiatives Rate of participation in major disaster response training P42 Information disclosure and dialogue with stakeholders Holding of stakeholder dialogues, etc. Number of dialogues, etc. P42 * KPI(s): Level of achievement () of Key Performance Indicator(s) and fi scal 2012 improvements () are described on page 42. Corporate Governance and Internal Controls Plan Corporate governance system and Do appropriate auditing TAISEI has adopted an executive officer system, enabling the Board of Directors (including outside directors) to focus on decision-making and supervision. TAISEI s Board of Directors also has various committees (such as the Human Resources Committee, the Finance Committee, and the Group Companies Committee). The Board of Auditors (including external auditors) serves to ensure the independence of audits and strengthen the TAISEI Group audit system as a whole. The Board of Auditors conducts internal audits in close cooperation with the company s accounting auditors and the internal audit organization. Internal control system Do In order to ensure the appropriate and effective implementation of our operations and reliability of our financial reporting as a Group, our Board of Directors has formulated the Basic Policy on the Establishment of a System to Ensure Proper Operations and has implemented a variety of related measures. Dissemination and establishment of Do the TAISEI Group Ideal Structure of Values and Policies The TAISEI Group reorganized the TAISEI Group Ideal Structure of Values and Policies in 2010, and we have been conducting a variety of measures geared toward its dissemination and establishment. Following on from the previous year, we conducted an e-learning program * on the TAISEI Group Ideal Structure of Values and Policies in fiscal We also created the Group ion Guideline File as a tool to assist employees in establishing connections between the TAISEI Group Ideal Structure of Values and Policies and their day-to-day individual work duties, and published it on our intranet. We also conducted a questionnaire on employees to survey the degree of dissemination of the TAISEI Group Ideal Structure of Values and Policies among employees. KPIs * P42 Corporate governance system General meeting of shareholders Election Accounting auditors Cooperation Election Corporate Auditors/ Board of Auditors Auditor s Secretarial Department Members of the Board/ Board of Directors Cooperation President and Chief Executive Officer Election Prior consultation and reporting Election/Supervision Committees of the Board of Directors Reporting and advice Auditing Department Operations Committee Special Committee Audit Group companies Internal audits Support Cooperation Division/ Branches (Operations) Division/ Branches (Operations) Division/ Branches (Operations) 35 TAISEI CORPORATE REPORT 2013 DATA BOOK

37 Risk Management Plan Promoting company-wide risk Do management To ensure appropriate management of the risks associated with our business activities, TAISEI established and operates a company-wide risk management system by identifying the risks involved in our business activities, classifying those risks by their degree of severity as company-wide risks, risks under division control, etc., and clarifying those responsible for managing said risks. In the case of company-wide risks that could have a serious effect on business management, we practice effective risk management throughout the company by centralizing information in the CRO Secretariat and sharing information with the Risk Management Committee and Risk Management Council. In addition, every year we follow the PDCA cycle, ensuring that our risk management remains constantly effective. System for the promotion of company-wide risk management Emergency situation Emergency response system CRO Section Emergency Headquarters President CRO* Review of the risk factors/classification Incorporation of recurrence prevention measures into risk management *CRO: Chief Risk Management Officer Head office Risk Management Promotion Committee Normal situation Company-wide risk management system Risk Management Committee Risk Management Council Branches and business divisions Risk Management Promotion Committee Business Continuity Plan (BCP) Do To fulfill our social responsibilities as a general constructor that provides infrastructure for socio-economic activities, we have established action guidelines and rules concerning business continuity planning (BCP * ) in anticipation of disasters such as an earthquake. TAISEI s disaster prevention and business continuity measures have been highly evaluated. The Kanto Regional Development Bureau and the Kinki Regional Development Bureau of the Ministry of Land, Infrastructure, Transport and Tourism have approved TAISEI s Basic Business Continuity Capabilities during a Disaster as a Construction Company and the Development Bank of Japan (DBJ) has given TAISEI the highest rank in its disaster preparedness rating (now known as the DBJ BCM rating). In addition to preparing for natural disasters such as earthquakes, we have also adopted and put into action guidelines concerning countermeasures to new strains of influenza, including creating a website on our intranet about countermeasures to new strains of influenza. Major disaster response training in Fiscal 2012 TAISEI conducted training drills * based on the scenario of damage from an earthquake directly beneath Tokyo, as revised by the Tokyo Metropolitan Government ahead of the national government. Through these drills, headquarters, branch offices nationwide, and TAISEI Group companies increased the effectiveness of their BCP by strengthening the company-wide support and acceptance system in which they cooperate. KPIs * P42 Information Disclosure And Dialogue With Stakeholders Plan Dialogues with stakeholders Do TAISEI holds various dialogues with the purpose of reconsidering our business activities through exchanges of information * and communication with a wide range of stakeholders. We have also established an information disclosure policy and conduct our business activities in accordance with that basic policy. Examples of dialogues * KPIs P42 Customers We conduct customer satisfaction surveys to accurately ascertain customer requests. Shareholders We encourage communication through general meetings of shareholders and the publication of shareholder newsletters. Shareholders and investors We hold fi nancial briefi ngs (twice a year) at which the president explains our performance and business strategies and engages in an exchange of opinions, which we feed back to the management team. Suppliers We established a procurement policy and aim to help create a sustainable society together with suppliers. Employees We conduct employee satisfaction surveys to survey the company environment for employees. Local communities We hold various tours to give local residents an understanding of our business activities. NPOs/NGOs We carry out activities to preserve green areas and the environment together with the Tokyo Metropolitan Government, local environmental organizations, and NPOs. Environmental meeting Do TAISEI held an Environmental Meeting for investors at the Taisei Technology Center in Yokohama, in order to give them an understanding of our business model and the company s latest technology concerning the environment. A lively exchange of opinions took place over the issue of energy conservation. Employee satisfaction survey Do TAISEI conducted an employee satisfaction survey to investigate whether it has a company environment in which employees can work enthusiastically. The results of the survey, which included eight separate categories (management direction, immediate supervisor, one s work, communication, ability improvement, workplace environment, human resources system, and overall assessment), were 82.4% satisfied, 4.5% unsatisfied, and 13.1% neither satisfied nor unsatisfied. TAISEI CORPORATE REPORT 2013 DATA BOOK 36

38 KPIs TAISEI KPIs Environmental KPIs Status of achievement: Achieved rpartially achieved Not achieved Contribution to the realization of a low-carbon society Definition Rate of reduction in CO2 emissions for building operation and construction stages compared to fiscal 1990 Main KPIs FY2011 results FY2012 targets / results Level of achievement FY2013 targets Projected CO2 emissions reduction rate during building use CO2 emissions reduction rate during construction Explanation of results 37.5% 30% / 43.6% 30% Civil engineering 47.9% 35% / 55.1% 35% Building construction 53.6% 45% / 56.7% 45% At the building operation stage, we applied the Eco-sheet CASBEE in design. In addition, at the construction stage, at each construction site we reduced CO2 emissions by means of initiatives including using eco drive techniques for construction machinery and reducing the distances over which excavated soil was transported. We are aiming to reduce CO2 emissions by 40% at the building operation stage and by 50% at the construction stage by fiscal Promote 3R activities/promote green procurement Rate of recycling of construction waste (excluding sludge) = (Amount generated Amount for final disposal) / Definition Amount generated 100 / Rate of procurement following Green Procurement Guidelines Main KPIs FY2011 results FY2012 targets / results Level of achievement FY2013 targets Rate of recycling of construction waste 94.9% 95% / 95.6% r 95% Rate of green procurement 39.1% 30% / 30.6% 30% Our recycling rate in fiscal 2012 was 95.6% in the building construction category (new buildings construction: 89.0%; demolition: 97.9%), 95.7% in the civil engineering category, and 95.6% Explanation of results overall, a figure above our target for the fiscal year. Our rate of green procurement was 30.6% (building construction: 30.0%; civil engineering: 31.7%). Promotion of use of wide-area certification system, effective use onsite, and separation into saleable resources and other waste, in order to increase our construction waste recycling rate. Realization of increase in green procurement rate through reexamination of products categorized for green procurement. Proper control of construction waste Digitalization of manually input manifest data, creation of system for management by network of producers of construction Definition waste, collection and transportation contractors, and waste disposal contractors via a data processing center. Rate of electronic manifest penetration = (number of electronic manifests issued/number of manifests issued) 100 Main KPIs FY2011 results FY2012 targets / results Level of achievement FY2013 targets Rate of electronic manifest Civil engineering 73.9% 70% / 79.0% 70% penetration Building construction 85.0% 80% / 88.9% 80% Explanation of results We achieved our targets in collaboration with each of our branches and construction site offices. Establishment of concrete targets for each branch and construction site office in order to increase the rate of diffusion of electronic manifests by fiscal Provide environmentally-friendly technologies Definition Amount of media coverage of development of environmentally-friendly technologies and projects (PJ) in which they are applied. Main KPIs FY2011 results FY2012 targets / results Level of achievement FY2013 targets Amount of media coverage of environmental 32 cases 20 cases / 30 cases technologies / PJ using these technologies 20 cases The relevant departments conducted their activities with targets for media coverage of the Explanation of results development of environmental technologies and PJ using those technologies. (For related information, see P15-16 and P19) Collaboration between departments responsible for research and development of CO2-reducing and energy-saving technologies and departments responsible for projects in which the technologies are applied. 37 TAISEI CORPORATE REPORT 2013 DATA BOOK

39 Consumer Issues KPIs Status of achievement: Achieved rpartially achieved Not achieved Establishment and observance of quality management standards and procedures Rate of implementation of surveys of customer satisfaction conducted after building handover (civil engineering) and rate of Definition return of customer satisfaction survey questionnaires (buiding construction) Main KPIs FY2011 results FY2012 targets / results Level of achievement FY2013 targets Civil engineering 100% 100% / 100% 100% Customer satisfaction surveys Building construction 80% 100% / 60% r 100% With regard to civil engineering surveys, 38 CS interviews were conducted with clients. Building Explanation of results construction surveys are still ongoing, and we continue following up with the aim of collecting 100% of questionnaire sheets from each of our branches in the future. The content of questionnaires will be checked and factors involved in items that received low evaluations will be analyzed and countermeasures reflected in construction evaluation meetings, etc. We will also aim to increase satisfaction by obtaining understanding through close communication with customers. Development and provision of technologies for resolving social Definition Number of patent applications and patents granted (registered), and amount of media coverage of the development of new technologies and projects in which those technologies are applied Main KPIs FY2011 results FY2012 targets / results Level of achievement FY2013 targets Number of patent applications filed and granted 256 cases 250 cases / 297 cases 250 cases Number of patents granted 193 cases 200 cases / 224 cases 200 cases Amount of media coverage of development of technologies / 66 cases 60 cases / 75 cases Projects in which technologies were applied 60 cases We do not compete in terms of the number of patent applications we file, but rather try to apply for Explanation of results patents for useful technologies that we will actually use, with a view toward differentiation with competitors and obtaining useful rights in our business. We achieved over 80% patent registration rate, greatly exceeding the industry average of around 55%. In the future, we will aim for even higher quality patent applications and the securing of wide-ranging patent rights. TAISEI CORPORATE REPORT 2013 DATA BOOK 38

40 KPIs Community Involvement and Development KPIs Contributions to local communities Status of achievement: Achieved rpartially achieved Not achieved Definition Number of activities conducted at TAISEI Group offices and construction sites to contribute to the environment and society Main KPIs FY2011 results FY2012 targets / results Level of achievement FY2013 targets Number of activities contributing to society and the 779 cases 800 cases / 1,048 cases environment 1,000 cases Environmental management target values, which we call the TAISEI Agenda, have been introduced as a focus of our activities, and we conducted activities to contribute to society in close cooperation with Explanation of results local communities at our offices and construction sites throughout the country. Following on from fiscal 2011, activities related to the Great East Japan Earthquake are included. We will continue to incorporate action items into the TAISEI Agenda. We will publicize activities that contribute to the environment and society in cooperation with local communities at construction sites and other operational areas in an effort to make them standard practice. Expanding employees volunteer activities Number of employees participating in activities that contribute to the environment and society and activities to aid recovery Definition from the Great East Japan Earthquake, organized by TAISEI to provide support for employees volunteer initiatives Main KPIs FY2011 results FY2012 targets / results Level of achievement FY2013 targets Number of employees who participanted in 258 people 250 people / 247 people volunteer activities r 150 people A total of 128 employees participated in our annual environmental preservation activities and Explanation of results other voluntary activities, and 119 employees participated in activities following on from the previous year to aid recovery from the Great East Japan Earthquake, for a total of 247 employees. Because the construction industry is a contract-based industry, depending on the specific period, sometimes employees are unable to take time off. However, employee volunteers try to use their limited time off for the benefit of society. In future, it will be necessary for us to promote the use of the volunteer leave system we established in April The target for fiscal 2013 was set at 150 employees, since recovery support related to the Great East Japan Earthquake has come to a conclusion. Human Rights and Labor Practices KPIs Human rights awareness raising activities The ratio of employees who have participated in training concerning human rights (e-learning programs, group training Definition sessions, etc.) Main KPIs FY2011 results FY2012 targets / results Level of achievement FY2013 targets Rate of attendance in human rights training 100% 100% / 100% 100% This year as well, we conducted human rights awareness-raising activities aimed at the importance Explanation of results of fair employment selection and resolution of various human rights problems. Aiming to enable all of our employees to think, learn, and act on their own initiative, we will continue working at awareness building that leads to sensitivity in addition to imparting accurate knowledge of human rights and promoting the cultivation of awareness. Promotion of diversity (Creating a great place to work for employees with diverse attributes) Definition Number and ratio of employees affected by diversity-related measures Main KPIs FY2011 results FY2012 targets / results Level of achievement FY2013 targets Number of participants in education training for 26 people 20 people / 26 people female leaders 40 people Number of female managers people people / 30 people 31 people Number of female executives people people / 133 people 135 people Physically and mentally challenged employment rate 1.88% 1.90% / 1.95% 2.00% Number of re-employed individuals 676 people 600 people / 582 people 600 people Seeking to promote diversity, TAISEI is creating workplaces in which a wide range of personnel Explanation of results can thrive. TAISEI promoted the employment of physically challenged individuals as one social contribution toward their self-reliance. In the future, we will continue to support diverse working styles and create working environments suited to employees with diverse attributes. 39 TAISEI CORPORATE REPORT 2013 DATA BOOK

41 Status of achievement: Achieved rpartially achieved Not achieved Support for work-life balance (1) (Number of employees taking child raising leave) Definition Number of employees using child raising leave system Main KPIs FY2011 results FY2012 targets / results Level of achievement FY2013 targets Number of employees taking childcare leave (Male) 2 people 1 person / 1 person 2 people Number of employees taking childcare leave (Female) 27 people 20 people / 37 people 25 people Number of employees taking leave when their 70 people 60 people / 76 people spouse gives birth 65 people Number of employees taking nursing care leave (Male) 30 people 30 people / 36 people 30 people Number of employees taking nursing care leave (Female) 85 people 80 people / 82 people 80 people TAISEI conducts its own childcare support program, for example by holding nationwide meetings via a Web conferencing system for employees who would like to take childcare leave and providing Explanation of results information via our company intranet. This has produced positive results, with the number of employees making use of childcare-related leave increasing. In the future, we will continue to publicize the system and to create an environment that encourages taking such leave. Support for work-life balance (2) (Rate of paid leave utilization) Rate of employees taking annual paid leave, Refresh leave (special leave that can be taken when reaching certain milestones Definition concerning years of employment), and Milestone leave (special leave able to be taken when a employee at a construction site office is transferred or reaches certain milestones of the construction project) Main KPIs FY2011 results FY2012 targets / results Level of achievement FY2013 targets Rate of Paid leave utilization 32.6% 35.0% / 34.2% r 35.0% Rate of Refresh leave utilization 88.9% 85.0% / 88.4% 85.0% Rate of Milestone leave utilization 78.2% 75.0% / 74.1% 75.0% TAISEI works to increase the leave usage rate by having employees eligible for leave consult with Explanation of results their superiors regarding a leave schedule at the start of the year. In fiscal 2012, the paid leave utilization rate exceeded the previous year s rate by 1.6%. TAISEI attempts to increase the leave usage rate by instructing personnel in supervisory positions to monitor the leave usage status appropriately, and encouraging employees who have not taken leave to do so. Support for work-life balance (3) (Number of former employees registered with Job-Return system) The enrollment of former employees who resigned due to childbirth, childcare, nursing care, or the relocation of a spouse at Definition our Job Return system, which offers the opportunity for ex-employees to return to employment if it suits the company s needs. Main KPIs FY2011 results FY2012 targets / results Level of achievement FY2013 targets Number of former employees registered with the Job-Return system 48 people 45 people / 49 people 45 people In order to support diverse types of work, TAISEI offers comprehensive guidance regarding the Job Explanation of results Return system, and attempts to increase the number of former employees registered. We will continue to offer guidance. Promoting the fostering of human resources Number of training hours per person for employee training programs conducted by the Head Office and branches, number of Definition employees who have received training at overseas construction sites or subsidiaries, research institutes, etc Main KPIs FY2011 results FY2012 targets / results Level of achievement FY2013 targets Training hours per employee 40.0 hours 40.0 hours / 42.1 hours 42.0 hours Number of trainees at overseas construction sites 26 people 22 people / 16 people 15 people Number of trainees at overseas research institutes, etc. 17 people 15 people / 10 people 10 people The purpose of training is to foster autonomous personnel with strong specializations and creativity. Explanation of results In fiscal 2012, we changed the program, narrowing the number of destinations and lengthening the training period for each trainee. We will keep conducting more effective training, to enable us to respond to accelerating globalization. We will also expand our training system, in line with the promotion of diversity initiatives. TAISEI CORPORATE REPORT 2013 DATA BOOK 40

42 KPIs Labor Practices KPIs Improving the safety and health level through TAISEI OHSMS Definition The frequency rate is the ratio of the number of deaths and injuries caused by industrial accidents per million man-hours worked. It is an indicator that expresses the frequency with which accidents occur. Main KPIs FY2011 results FY2012 targets / results Level of achievement FY2013 targets Number of fatal accidents 4 cases 0 case / 2 cases 0 case Frequency rate 0.58 * 1.12 or below / or below 91 accidents occurred that required time off work (including accidents by business proprietors). Of Explanation of results these, 58 required four or more days off work and two were fatal accidents. Status of achievement: Achieved rpartially achieved Not achieved We aim to achieve our target through thorough implementation of the 2013 Health and Safety Policy. * Calculated for accidents entailing four or more days off work. From 2012, the target is set on the basis of all accidents entailing days off work, irrespective of the number of days. Fair Business Practice KPIs Ongoing implementation of compliance training Rate of participation in compliance training (group training) conducted for employees, number of branches (domestic) Definition conducting compliance training for subcontractors Main KPIs FY2011 results FY2012 targets / results Level of achievement FY2013 targets Rate of participation in compliance training (Group 100% 100% / 100% training) 100% Number of branches conducting compliance 12 cases 12 cases / 12 cases training for subcontractors 12 cases Selecting themes related to day-to-day work, we inform employees of the laws and regulations related to their actual works in a small-group discussion format. Explanation of results Seeking to increase awareness of compliance in all specialist contracting companies, we conduct compliance training for the subcontractors at Occupational Health and Safety Conventions held at our branches. We continuously conduct compliance training (group training) and training for subcontractors at all of our branches. Intellectual property risk management initiatives Definition Number of times training is conducted to increase awareness of support for patent applications and intellectual property Main KPIs FY2011 results FY2012 targets / results Level of achievement FY2013 targets Number of training sessions on intellectual 31 times 30 times / 36 times property rights 30 times In addition to conducting intellectual property-related training at the head office and branches, we Explanation of results are working to increase the level of IP awareness throughout the company by conducting a series of activities such as visiting 37 major construction sites. We will continuously conduct training to increase awareness of intellectual property rights among all employees, not just employees working in Intellectual Property departments, and we will work to foster a culture of invention and strengthen risk management by means of close cooperation between the Intellectual Property Department and other technology-related departments. Information protection and management Number of major security breaches of electronic information related to TAISEI Group, and number of times company-wide Definition education programs regarding information security have been conducted Main KPIs FY2011 results FY2012 targets / results Level of achievement FY2013 targets Number of major information security breaches 0 case 0 case / 0 case 0 case Number of company-wide education programs regarding information security (group training and 12 times 10 times / 16 times 15 times e-learning throughout the TAISEI Group) As a result of the continuous implementation of technological and human measures, we have experienced no major information breaches. We also believe that the practice of conducting Explanation of results company-wide information security education classes has become well established, including at Group companies. New threats relating to information security are appearing one after the other, and so there is a need keep employees informed of these threats. 41 TAISEI CORPORATE REPORT 2013 DATA BOOK

43 Organizational Administration KPIs Status of achievement: Achieved rpartially achieved Not achieved Dissemination and establishment of the TAISEI Group Ideal Structure of Values and Policies Definition Rate of implementation of e-learning for employees Rate of TAISEI Group Ideal e-learning implementation Explanation of results Main KPIs FY2011 results FY2012 targets / results Level of achievement FY2013 targets 90.5% 100% / 97.8% r 100% Conducted one time in fiscal Had effect on the dissemination and establishment of the TAISEI Group Ideal Structure of Values and Policies. Seeking further penetration and establishment of the TAISEI Group Ideal Structure of Values and Policies, we will continue conducting e-learning programs in the future, with a target of 100% employee participation. BCP initiatives Rate of employee participation in major disaster response training conducted at the head office and branches (including the Definition number of employees participating in training in the use of safety confirmation systems) Main KPIs FY2011 results FY2012 targets / results Level of achievement FY2013 targets Rate of participation in major disaster response 99.6% 100% / 100% training 100% We increased the effectiveness of our BCP by conducting drills focusing on the priority of responding to a new damage estimation for an earthquake directly beneath Tokyo, establishing Explanation of results a company-wide support and acceptance system, and establishing a more rapid initial response system. We will continuously conduct major disaster response training to increase the effectiveness of our BCPs, aiming towards a 100% employee participation rate. Holding stakeholder dialogues, etc. Definition Number of times TAISEI conducts dialogues with stakeholders Main KPIs FY2011 results FY2012 targets / results Level of achievement FY2013 targets Number of dialogues, etc. 5 cases 5 cases / 5 cases 5 cases We held five exchanges of opinions with various stakeholders, including a private training for Explanation of results teachers, a consumer roundtable, a results briefing, a construction site visit, and an investor environmental meeting. We will continue to hold dialogues and exchanges of opinion with a variety of stakeholders. TAISEI CORPORATE REPORT 2013 DATA BOOK 42

44 KPIs Group Company KPIs Taisei Rotec Corporation Status of achievement: Achieved rpartially achieved Not achieved ISO core subject Labor practices KPIs Main Issues and Objectives Thoroughgoing occupational health and safety management The ratio of the number of fatalities and injuries caused by industrial accidents per million Definition actual man-hours worked. It is an indicator that expresses the frequency with which accidents entailing four or more days away from work occur. Main KPIs FY2012 targets / results Level of achievement FY2013 targets Frequency rate 0.5 / 0.6 r 0.5 Eight accidents occurred that required four or more days away from work. Explanation of results This was the second best record in the past five years, but was still below the target. Given that many accidents occur when a person is working alone, we will focus on establishing one-man safety practices to raise workers safety awareness, and on education that encourages workers to think on their own before acting. ISO core subject Environmental KPIs Main Issues and Objectives Proper control of construction waste The ratio of construction projects using the Computerized Manifest System to all construction Definition projects that generates industrial waste. It is an indicator that measures the accuracy of appropriate management. Main KPIs FY2012 targets / results Level of achievement FY2013 targets Rate of electronic manifest penetration / 12.6% 15.0% Explanation of results Currently, it is difficult for industrial waste disposal companies to install the Computerized Manifest System, as many of them are small-sized businesses. We will encourage subcontractors to install the Computerized Manifest System, emphasizing the fact that the system not only improves work efficiency but also contributes to compliance assurance. Taisei-Yuraku Real Estate Co., Ltd. ISO core subject Environmental KPIs Main Issues and Objectives Promote energy conservation Reduction rate for power consumption in offices (scope of aggregation: head office) Definition compared to the base year (fiscal 2010) Number of energy saving improvements suggested to customers in facilities management Main KPIs FY2012 targets / results Level of achievement FY2013 targets Power consumption 10% / 11% 11% reduction rate (offices) Number of facility energy saving improvements 13 cases / 20 cases 20 cases suggested to customers We achieved the targets for both the power consumption reduction rate and the number of energy saving improvements suggested, as a result of Explanation of results promoting EMS activities related to ISO in the head office. 17 out of the 20 energy saving improvements suggested were adopted. We will aim to achieve the target for power consumption on a companywide basis, as we plan to expand the scope of aggregation to the entire company, including branches, by fiscal Taisei U-LEC Co., Ltd. ISO core subject Environmental KPIs Main Issues and Objectives Promote 3R (reduce, reuse, recycle) activities Proper control of construction waste Rate of recycling of construction waste (excluding sludge) = [(Amount generated Amount for final disposal) / Amount generated] 100 Definition Rate of electronic manifest penetration = (number of electronic manifests issued/number of manifests issued) 100 Main KPIs FY2012 targets / results Level of achievement FY2013 targets Rate of recycling of construction waste Rate of electronic manifest penetration Explanation of results 97% / 97% 98% 90% / 92% 92% We achieved our target for the recycling rate with a rate of 97.0% in fiscal The electronic manifest penetration rate was high for new buildings construction and renovations (100%) and sludge (99.4%) but was low for demolition work (66.3%), resulting in an overall rate of 92%, achieving the target. When roads to a demolition work site are narrow, Taisei U-LEC is forced to hire collection and transportation contractors that mainly use small dump trucks. However, most of those subcontractors have not registered for the Computerized Manifest System. Taisei U-LEC will encourage them to do so. 43 TAISEI CORPORATE REPORT 2013 DATA BOOK

45 Taisei Setsubi Co., Ltd. Status of achievement: Achieved rpartially achieved Not achieved ISO core subject Fair Business Practice KPIs ISO core subject Environmental KPIs Main Issues and Objectives Promoting compliance Main Issues and Objectives Conduct comprehensive environmental activities Rate of participation in compliance training (small-group training and group training) and Definition e-learning provided to executives and employees Main KPIs FY2012 targets / results Level of achievement FY2013 targets Rate of participation in 100% / 100% 100% compliance training Selecting themes related to day-to-day work, we attempted to keep executives and employees fully informed through small-group (twice a year) and group Explanation of results (once a year) trainings. Additionally, we also conducted e-learning (twice a year) after the training sessions to reaffirm the content, which has been effective. We will continuously provide compliance training company-wide and attempt to establish compliance awareness among executives and employees. Definition Rate of participation in environment-related education provided to all employees at the head office and branches Main KPIs FY2012 targets / results Level of achievement FY2013 targets Rate of participation in environment-related training 100% / 90% r 100% This year we held study sessions three times for executives and employees Explanation of results at the head office and branches, in order to raise their environmental awareness and increase their knowledge, including of industrial waste, energy conservation, ISO 14001, and revisions to environmental legislation. We will continue providing education with the target of 100% participation, in order to increase environmental awareness and knowledge of environmental laws and regulations. Taisei Housing Corporation ISO core subject Consumer KPIs Main Issues and Objectives Quality control and improving customer satisfaction Definition Customer questionnaire evaluation rate from questionnaires given to clients at the time of building handover Main KPIs FY2012 targets / results Level of achievement FY2013 targets Customer satisfaction surveys (manufacturer recommendation 95% / 97% 100% intention surveys) We aggregated questionnaire surveys returned within one month after Explanation of results customer questionnaire forms were given at the time of building handover. We achieved our target by improving the handling of sales personnel and increasing manufacturer recommendation intention. The deciding factors for choosing a manufacturer were being a reliable company and providing excellent quality and performance. Going forward, we will continue trying to increase recommendation intention by improving our total quality and reinforcing our suggestion capabilities, in order to earn the trust of customers. Seiwa Renewal Works Co., Ltd. ISO core subject Labor practices KPIs Main Issues and Objectives Thoroughgoing occupational health and safety management Definition An indicator that expresses the frequency of occurrence of accidents that require four or more days off work. Main KPIs FY2012 targets / results Level of achievement FY2013 targets Number of occupational accidents (requiring four or 0 case / 2 cases 0 case more days off work) Explanation of results Two accidents occurred that required four or more days off work. This was the worst record in the past five years. Many accidents occurred in situations where work procedures were changed without careful consideration or left out. Accordingly, we will re-inform workers of the importance of work procedures. ISO core subject Organizational governance KPIs Main Issues and Objectives Risk management Definition Rate of participation in safety confirmation training during major disaster response training Main KPIs FY2012 targets / results Level of achievement FY2013 targets Rate of participation in major disaster response training 100% / 100% r 100% Explanation of results We achieved 100% participation as the result of sending s to all employees several times, calling for definite participation. We will continue to communicate to employees the significance of training and we need to call for definite participation. TAISEI CORPORATE REPORT 2013 DATA BOOK 44

46 Financial Data Consolidated Balance Sheets TAISEI CORPORATION and Consolidated Subsidiaries March 31, 2012 and 2013 Please see our Financial Statement (April 1, 2012 March 31, 2013) for details of our financial reporting. ASSETS Current assets: Thousands of Millions of Yen U.S. Dollars Cash and time deposits , ,639 $ 2,835,077 Receivables:... Trade notes... 17,407 12, ,037 Trade accounts , ,869 4,443,052 Loans Allowance for doubtful accounts... (1,112) (960) (10,207) Inventories: Development projects in progress, real estate , ,829 1,422,956 Raw materials and supplies... 10,250 5,375 57,150 Cost on uncompleted contract ,012 83, ,355 Deferred income taxes... 36,595 34, ,271 Prepaid expenses and other current assets... 52,267 58, ,922 Total current assets ,931 1,012,639 10,767,028 Property and equipment, at cost Land , ,780 1,475,598 Buildings and structures , ,108 1,521,616 Machinery and equipment... 57,960 57, ,973 Construction in progress , , ,722 3,612,142 Accumulated depreciation... (135,544) (133,646) (1,421,010) Net property and equipment , ,076 2,191,132 Investments and other assets : Investments in unconsolidated subsidiaries and affiliated companies... 13,052 3,288 34,960 Investment securities , ,083 2,701,574 Deferred income taxes... 38,277 11, ,458 Other assets... 81,982 62, ,372 Allowance for doubtful accounts... (15,191) (6,334) (67,347) Total investments and other assets , ,380 3,449,017 Total assets... 1,494,696 1,543,095 $ 16,407,177 The accompanying notes are an integral part of these balance sheets. 45 TAISEI CORPORATE REPORT 2013 DATA BOOK

47 Financial Data Consolidated Balance Sheets (cont.) TAISEI CORPORATION and Consolidated Subsidiaries March 31, 2012 and 2013 LIABILITIES AND NET ASSETS Current liabilities: Millions of Yen Thousands of U.S. Dollars Short-term borrowings ,523 86,355 $ 918,182 Long-term debt due within one year... 97,624 60, ,944 Trade payables: Notes... 54,968 55, ,262 Accounts , ,074 4,572,823 Advances received and progress billings on uncompleted contracts , ,698 1,230,175 Allowance for losses on order received ,552 Income taxes payable... 4,885 1,039 11,047 Deposits received... 85,675 91, ,045 Allowance for losses on construction contracts... 24,084 31, ,568 Other current liabilities... 26,877 34, ,196 Total current liabilities , ,281 9,646,794 Long- term liabilities: Long-term debt , ,966 2,466,411 Allowance for employees severance and retirement benefits... 31,860 33, ,628 Allowance for accrued severance indemnities to directors and corporate auditors ,540 Deferred income taxes for revaluation of land... 5,922 5,696 60,564 Allowance for losses on investments in subsidiaries and affiliates... 1, ,401 Allowance for environmental spending ,275 Assets retirement obligation... 1,210 1,223 13,004 Other non-current liabilities... 20,927 18, ,373 Total long-term debt , ,514 3,110,196 Total liabilities... 1,202,094 1,199,795 12,756,990 Contingent liabilities and commitments Net assets Shareholders equity : Common stock Authorized: 2,200,000,000 shares Issued: 1,140,268,860 shares , ,448 1,195,619 Capital surplus... 94,170 94,170 1,001,277 Retained earnings... 78,293 93, ,048 Less-Treasury stock, at cost... (197) (302) (3,211) Total shareholders equity , ,336 3,182,733 Accumulated other comprehensive income: Unrealized holding gains on securities, net of taxes... 9,943 45, ,368 Unrealized losses on hedging derivatives, net of taxes... (62) (208) (2,212) Revaluation reserve for land... (587) (960) (10,207) Foreign currency translation adjustments... (2,739) (2,569) (27,315) Total accumulated other comprehensive income... 6,555 42, ,634 Minority interests:... 1,333 1,770 18,820 Total net assets , ,300 3,650,187 Total liabilities and net assets... 1,494,696 1,543,095 $ 16,407,177 TAISEI CORPORATE REPORT 2013 DATA BOOK 46

48 Financial Data Consolidated Statements of Income TAISEI CORPORATION and Consolidated Subsidiaries March 31, 2012 and 2013 Revenue: Net sales... Millions of Yen Thousands of U.S. Dollars Construction... 1,171,927 1,254,291 $ 13,336,427 Real estate (including other) , ,205 1,724,668 1,323,504 1,416,496 15,061,095 Costs and expenses Cost of sales... 1,206,014 1,304,677 13,872,164 Selling, general and administrative expenses... 81,004 76, ,345 1,287,018 1,380,890 14,682,509 Operating income... 36,486 35, ,586 Other income (expense): Interest and dividend income... 3,171 3,295 35,035 Interest expense... (7,505) (6,312) (67,113) Miscellaneous Taxes... (365) (159) (1,691) Foreign exchange gains (losses)... (1,934) 2,710 28,814 Gains on sale of investment securities... 1, Gains on sale of property and equipment ,934 Losses on sale of investment securities... - (4) (43) Losses on investments in related companies... (1,570) - - Impairment losses on fixed assets... (12,174) (1,402) (14,907) Losses on write-down of investment securities... (558) (170) (1,808) Losses on disposal of fixed assets... (106) (200) (2,127) Other, net... (215) (1,000) (10,632) (19,813) (2,778) (29,538) Income before income taxes and other items... 16,673 32, ,048 Income taxes Current... (6,337) (3,623) (38,522) Deferred... (9,143) (8,776) (93,312) (15,480) (12,399) (131,834) Income before minority interests... 1,193 20, ,214 Minority interest in net income of consolidated subsidiaries... (12) (378) (4,019) Net income 1,181 20,051 $ 213,195 Amounts per share of common stock: Yen U.S. Dollars Net income $ Diluted net income Cash dividends applicable to the year The accompanying notes are an integral part of these statements. 47 TAISEI CORPORATE REPORT 2013 DATA BOOK

49 Financial Data Consolidated Statements of Comprehensive Income TAISEI CORPORATION and Consolidated Subsidiaries March 31, 2012 and 2013 Millions of Yen Thousands of U.S. Dollars Income before minority interest 1,193 20,429 $ 217,214 Other comprehensive income Unrealized holding gains on securities, net of taxes... 5,159 35, ,669 Unrealized gains (losses) on hedging derivatives, net of taxes (144) (1,531) Revaluation reserve for land Foreign currency translation adjustments ,350 Share of other comprehensive income of associates accounted for using equity method... (35) 99 1,053 Total other comprehensive income 6,469 36, ,541 Comprehensive income 7,662 56,501 $ 600,755 Comprehensive income attribute to: owners of the parent... 7,581 56, ,119 minority interests ,636 The accompanying notes are an integral part of these statements. TAISEI CORPORATE REPORT 2013 DATA BOOK 48

50 Financial Data Consolidated Statements of Changes in Net Assets TAISEI CORPORATION and Consolidated Subsidiaries March 31, 2012 and 2013 Millions of Yen Common stock Capital Surplus Retained earnings Treasury stock Total shareholders equity Unrealized holding gains on securities, net of taxes Unrealized losses on hedging derivatives, net of taxes Revaluation reserve for land Foreign currency translation adjustments Total accumulated other comprehensive income Minority interests Total net assets Balance at March 31, ,448 94,170 83,857 (19 3 ) 290,282 4,792 (138) (2,483) (3,064) (893) 1, ,598 Dividends (5,697) - (5,697) (5,697) Net income ,181-1, ,181 Sale of treasury stock... - (0) Acquisition of treasury stock... Reversal of revaluation reserve for land... Changes other than shareholder's equity, net (5) (5) (5) - - (1,048) - (1,048) - - 1,048-1, , , ,524 Balance at March 31, ,448 94,170 78,293 (19 7 ) 284,714 9,943 (62) (587) ( 2,7 3 9 ) 6,555 1, ,602 Dividends (5,697) - (5,697) (5,697) Net income ,051-20, ,051 Sale of treasury stock... - (0) Acquisition of treasury stock... Reversal of revaluation reserve for land... Changes other than shareholder's equity, net (106) (106) (106) (373) - (373) ,988 (146) , ,449 Balance at March 31, ,448 94,170 93,020 (302) 299,336 45,931 (208) (960) (2,569) 42,194 1, ,300 Thousands of U.S. Dollars Common stock Capital Surplus Retained earnings Treasury stock Total shareholders equity Unrealized holding gains on securities, net of taxes Unrealized losses on hedging derivatives, net of taxes Revaluation reserve for land Foreign currency translation adjustments Total accumulated other comprehensive income Minority interests Total net assets Balance at March 31, 2012 $ 1,195,619 $ 1,001,277 $ 832,461 $ ( 2, ) $ 3,027,262 $ 105,720 $ (660) $ (6,241) $ ( 2 9,12 3 ) $ 69,696 $ 14,174 $ 3,111,132 Dividends (60,574) - (60,574) (60,574) Net income , , ,195 Sale of treasury stock Acquisition of treasury stock... Reversal of revaluation reserve for land... Changes other than shareholder's equity, net (1,127) (1,127) (1,127) - - 3,966-3, (3,966) - (3,966) ,648 (1,552) - 1, ,904 4, ,550 Balance at March 31, 2013 $ 1,195,619 $1,001,277 $ 989,048 $ (3,211) $ 3,182,733 $ 488,368 $ (2,212) $ (10,207) $ (27,315) $ 448,634 $ 18,820 $ 3,650,187 The accompanying notes are an integral part of these statements. 49 TAISEI CORPORATE REPORT 2013 DATA BOOK

51 Financial Data Consolidated Statements of Cash Flows TAISEI CORPORATION and Consolidated Subsidiaries March 31, 2012 and 2013 Millions of Yen Thousands of U.S. Dollars Cash flows from operating activities: Income before income taxes and other items 16,673 32,828 $ 349,048 Adjustments to reconcile income before income taxes and other items to net cash provided by operating activities: Depreciation and amortization... 8,002 6,866 73,004 Impairment losses on fixed assets... 12,174 1,402 14,907 Interest and dividend income... (3,171) (3,295) (35,035) Interest expense... 7,505 6,312 67,113 Foreign exchange losses (Gains)... 1,934 (2,710) (28,814) Losses (Gains) on write-down of investment securities... 12, ,264 Losses (Gains) on sale of investment securities... (1,365) 4 43 Losses (Gains) on sale of property and equipment... (78) (464) (4,934) Losses on disposal of fixed assets ,127 Losses (gains) on write-down of real estate for sale... 5,772 3,229 34,333 Changes in assets and liabilities: Decrease (Increase) in trade receivables... (92,192) (45,069) (479,203) Decrease (Increase) in cost on uncompleted contract... (2,131) 27, ,538 Decrease (Increase) in inventories other than cost on uncompleted contract... 8,425 17, ,296 Increase (Decrease) in trade payables... 83,356 38, ,051 Increase (Decrease) in advances received and progress billings on uncompleted contracts... 31,761 (16,606) (176,566) Increase (Decrease) in allowance for doubtful accounts... (2,132) (9,012) (95,821) Increase (Decrease) in allowance for losses on construction contracts... 13,465 7,193 76,481 Increase (Decrease) in retirement benefits... 2,305 1,866 19,841 Increase (Decrease) in deposit received... 21,510 6,028 64,094 Other, net... (12,378) 1, , ,199 82, ,661 Cash received (paid) during the year for: Interest and dividends received... 3,100 3,619 38,480 Interest paid... (7,572) (6,373) (67,762) Income taxes paid... (2,627) (6,615) (70,335) Net cash provided by (used in) operating activities 105,100 73, ,044 Cash flows from investing activities: Decrease (Increase) in time deposits... (2,259) 1,753 18,639 Purchase of marketable and investment securities... (5,832) (11,627) (123,626) Proceeds from sale of marketable and investment securities... 5,170 6,521 69,335 Purchase of property, equipment and intangible assets... (6,722) (6,284) (66,816) Proceeds from sale of property, equipment and intangible assets... 1,947 4,193 44,583 Other, net... (399) 741 7,880 Net cash provided by (used in) investing activities (8,095) (4,703) (50,005) Cash flows from financing activities: Increase (Decrease) in short-term borrowings... (23,901) (16,168) (171,909) Payment for retirement by purchase of convertible bond... 0 (20,276) (215,587) Proceeds from long-term debt... 89, ,810 1,093,142 Repayment of long-term debt... (118,323) (106,818) (1,135,758) Cash dividends paid, including those to minority interest... (5,698) (5,697) (60,574) Other, net... (296) (402) (4,274) Net cash provided by (used in) financing activities (58,822) (46,551) (494,960) Effect of exchange rate changes on cash and cash equivalents... (694) 2,783 29,590 Net increase (Decrease) in cash and cash equivalents... 37,489 24, ,669 Cash and cash equivalents at beginning of year , ,163 2,564,200 Cash and cash equivalents at end of year , ,773 $ 2,825,869 The accompanying notes are an integral part of these statements. TAISEI CORPORATE REPORT 2013 DATA BOOK 50

52 Corporate Data For details on our latest corporate profi le, please see TAISEI s offi cial website. le/corp_data.html Corporate Profile (as of March 31, 2013) Name Taisei Corporation Established December 28, 1917 Paid-in capital billion H e a do f fi c e Shinjuku Center Building, Nishi-Shinjuku, Shinjuku-ku, Tokyo , Japan Number of employees 7,945 Representative Main business operations Takashi Yamauchi, Representative Director, President and Chief Executive Offi cer Construction, urban development, other construction-related business operations, and associated engineering services, etc. Consolidated Companies Consolidated subsidiaries: 25; equity method affi liates: 7 Board of Directors, Corporate Auditors and Executive Officers (as of July 1, 2013) Board of Directors and Corporate Auditors Chairman of the Board (Representative Director) Takashi Yamauchi Members of the Board Hirofumi Ichihara (Representative Director) Hiroyuki Kimura (Representative Director) Misao Akune (Representative Director) Kazuhiko Dai Yoshiyuki Murata Shigeyuki Sakurai Masahiro Sakai Tohru Tsuji Fumio Sudo Senior Audit &Supervisory Board Member Atsushi Okamoto Nobuyuki Motegi Audit &Supervisory Board Member Masakuni Sekimoto Terunobu Maeda Shigeru Morichi Kiwamu Miyakoshi Executive Officers President and Chief Executive Officer Takashi Yamauchi Executive Vice Presidents Hirofumi Ichihara Hiroyuki Kimura Misao Akune Hiroshi Tada Satoru Ogata Toshio Tominaga Senior Managing Executive Officers Kazuhiko Dai Masatake Taniuchi Hidemi Omi Hidetoshi Yasukawa Yasushi Suzuki Norimitsu Yoshihama Managing Executive Officers Fumihiro Yamada Shigeki Watanabe Junji Katsura Junichi Ikeguchi Masatsugu Yamada Hisao Tamura Toshio Matsuda Osamu Tsujita Sumio Yabuki Tsuyoshi Hirono Kazuhiko Hombu Michio Kuboniwa Shigeru Konnai Shigeyoshi Tanaka Yoshiyuki Murata Shigeyuki Sakurai Masahiro Sakai Motofumi Fujiwara Yoshinobu Shigeji Executive Officers Hirofumi Kamata Satoru Tsutae Yukio Matsuno Masahiro Oshima Masafumi Anami Yoshitaka Inoue Yasushi Yoshinari Katsuyuki Kanai Yusuke Fukuda Takashi Ohkawa Tamotsu Umehara Tetsuya Shibayama Takeo Horinouchi Shoji Kondo Norihiko Yaguchi Takao Kanai Hiroshi Shirakawa Haruhiko Kouno Yoshinori Nishida Hiroshi Suzuki Kaoru Maruyama Tsuyoshi Nakanishi Atsuo Ogawa Takeshi Kagata Masaharu Okada Jirou Taniyama Takao Doi Yoshiro Aikawa Keiji Hirano 51 TAISEI CORPORATE REPORT 2013 DATA BOOK

53 TAISEI Corporation Organization Chart (as of April 1, 2013) Head Office President Secretarial Dept. Auditing Dept. Corporate Planning Office Business Administration Div. Safety Administration Division Environment Division Taisei Technology Center Nuclear Facilities Division Marketing & Sales Promotion Div. Proposal & Solutions Div. Corporate Planning Dept. Corporate Communication Dept. Information Planning Dept. Personnel Dept. General Affairs Dept. Legal Dept. Accounting Dept. Finance Dept. Safety Administration Dept. Environmental Administration Dept. Planning & Administration Dept. Environmental Development Dept. Environmental Planning Dept. Soil Remediation & Geo-Environmental Services Dept. Technology Planning Dept. Intellectual Property Dept. Building Engineering Research Institute Civil Engineering Research Institute Building Technology Development Dept. Civil Engineering Technology Development Dept. Nuclear Facilities Planning Dept. Nuclear Facilities Engineering Dept. I Nuclear Facilities Engineering Dept. II Nuclear Facilities Engineering Dept. III Nuclear Facilities Construction Planning Dept. Marketing & Sales Promotion Dept. Planning & Business Promotion Dept. Real Estate Information Dept. Life Cycle Care Promotion Dept. Customer Satisfaction Dept. Project Solutions Dept. * Architecture & Engineering Division (Integrated) Engineering Div. Building Construction Div. Mechanical & Electrical Div. Design Div. Civil Engineering Div. Procurement Div. Engineering Planning Dept. Groups Strategic/Condominium Projects Support & Technology Coordination Dept. Technology Management Dept. Building Construction Dept. Technology Promotion Dept. Estimate Dept. Building Renovation Technology Dept. Mechanical & Electrical Dept. Operations Planning Dept. Architectural Design Depts. Structural Engineering Depts. Structural Planning Dept. M&E Engineering Depts. M&E Planning Dept. Planning & Design Dept. Technical Design Dept. Quality Management Dept. International Projects Dept. Civil Engineering Dept. Construction Engineering Dept. Machinery Dept. Design Dept. Estimate Dept. Project Analysis & Information Dept. Next Generation Project Dept. Procurement Dept. I Procurement Dept. II International Procurement Dept. Procurement Dept. III Planning & Administration Dept. Business Solutions Dept. Marketing & Sales (Building Construction) Div. I Marketing & Sales Depts. Marketing & Sales (Building Construction) Div. II Marketing & Sales Depts. Branches Marketing & Sales Division (Integrated) Marketing & Sales (Building Construction) Div. III Medical & Welfare Business Div. Urban Development Div. Marketing & Sales (Civil Engineering) Div. Marketing & Sales (West Japan) Division Marketing & Sales Depts. Marketing & Sales Depts. Planning & Management Dept. Project Development Dept. I Project Development Dept. II PPP Projects Dept. Urban Redevelopment Dept. I Urban Redevelopment Dept. II Asset Management Dept. Development Business Dept. Marketing & Sales Depts. Marketing & Sales Depts. Branch International Operations Headquarters Administration Dept. Safety Administration & Environmental Dept. Marketing & Sales Depts. Building Construction Dept. Design Dept. Civil Engineering Dept. Reconstruction Project Dept. (Civil Engineering) *Tohoku Branch Administration Dept. Contracts & Claims Management Dept. Safety Administration & Environmental Dept. Marketing & Sales Depts. Building Construction Dept. East Japan Reconstruction Div. Reconstruction Department I Reconstruction Department II Civil Engineering Dept. Projects Creation Dept. Sales Mindset/Skills Training Dept. * Corporate Auditor Auditor s Secretarial Dept. TAISEI CORPORATE REPORT 2013 DATA BOOK 52

54 Corporate Data Overseas Network Head Office Nishi-Shinjuku, Shinjuku-ku,Tokyo , JAPAN TEL Branches Tokyo, Osaka, Nagoya, Fukuoka, Sapporo, Sendai, Hiroshima, Yokohama, Niigata, Takamatsu, Chiba, Saitama, Kobe, Kyoto Major Subsidiaries in Japan Taisei Rotec Corporation, Taisei-Yuraku Real Estate Co.,Ltd., Taisei U-Lec Co,Ltd., Taisei Setsubi Co.,Ltd., Taisei Housing Corporation, Seiwa Renewal Works Co., Ltd., International Operations Headquarters Nishi-Shinjuku, Shinjuku-ku, Tokyo , JAPAN TEL FAX Overseas Offices TAIPEI OFFICE Zone B, 6F, No. 16, Sec. 4, Nan-Jing E. Road, Taipei, Taiwan R.O.C. TEL FAX MIDDLE EAST OFFICE (Doha) Corner Abdullah Bin Jassim St. United Bank Bldg. 4th Floor, Facing QNB Bldg, Doha Qatar, PO BOX TEL FAX MIDDLE EAST OFFICE (Dubai) Emarat Atrium, Unit No.3, Ground Floor, Block-A(West), Al Wasl, Sheikh Zayed Road, P.O.Box 31202, Dubai, U.A.E. TEL FAX U.S.A OFFICE 6261 Katella Avenue, Suite 200, Cypress, CA 90630, U.S.A TEL Ext.266 FAX KUALA LUMPUR OFFICE 9-3, 9th Floor, Faber Imperial Court, Jalan Sultan Ismail, Kuala Lumpur, MALAYSIA TEL FAX JAKARTA OFFICE Plaza PP 5F, JL Letjend TB Simatupang, No.57, Pasar Rebo, Jakarta 13760, INDONESIA TEL FAX INDIA OFFICE 4TH FLOOR, SCO-56, OLD JUDICIAL COMPLEX, CIVIL LINES, GURGAON, HARYANA , INDIA TEL FAX PAKISTAN OFFICE House No.25-B, Street No.20, Sector F-7/2, Islamabad, Pakistan TEL FAX VIETNAM OFFICE (Hanoi) 289 Khuat Duy Tien Road, Trung Hoa Ward, Cau Giay District, Hanoi, S.R.VIETNAM TEL FAX VIETNAM OFFICE (Hochiminh City) VIETNAM CHAMBER OF COMMERCE AND INDUSTRY, Hochiminh City Branch Building 7th Floor, 171 Vo Thi Sau St., Ward7, District-3, Hochiminh City, S.R.VIETNAM TEL FAX TAISEI CORPORATE REPORT 2013 DATA BOOK

55 Corporate Data (as of August 1, 2013) MYANMAR OFFICE 2nd Floor, Tokyo Enterprise Building, No.32, Pyay Road, 61/2 miles, Hlairg Township, Yangon, Myanmar TEL FAX SRI LANKA OFFICE No.177, 3rd Floor, Galle Road, Colombo 03. TEL FAX NORTH AFRICA OFFICE 25th, Rd No.10, Station Sqr., Maadi, Cairo, Arab Republic of Egypt TEL FAX THAILAND OFFICE ISTANBUL OFFICE 9th Fl., Thanapoom Tower, 1550 New Petchburi Road, Kwaeng Makkasan, Khet Rachtavee, Bangkok 10400, THAILAND Barbaros Mah. Seyit Ahmet Deresi Sok.Bahar Sitesi Yani, Altunizade Uskudar Istanbul, TURKEY TEL , 57 FAX TEL FAX Overseas Subsidiaries & Affiliates PT.PP-TAISEI INDONESIA CONSTRUCTION 5th Floor, Plaza PP, JL Letjend TB Simatupang, No.57, Pasar Rebo, Jakarta 13760, INDONESIA TEL FAX TAISEI (THAILAND) CO., LTD. TAS PLAN, Inc. 9th Floor, Thanapoom Tower, 1550 New Petchburi Road, Kwaeng Makkasan, Khet Rachtavee, Bangkok 10400, THAILAND 23rd Floor, Equitable Bank Tower, Paseo de Roxas, Salcedo Village, Makati City, PHILIPPINES TEL FAX TEL FAX VINATA INTERNATIONAL J/V LTD. CO. CSCEC-TAISEI CONSTRUCTION, LTD TAISEI PHILIPPINE CONSTRUCTION INCORPORATED PT. INDOTAISEI INDAH DEVELOPMENT HeadOffice VINATA Workshop, Khuat Duy Tien Road, Trung Hoa, Cau Giay, Hanoi, S.R.VIETNAM Hochiminh City Branch Office 7th Floor, VIETNAM CHAMBER OF COMMERCE AND INDUSTRY TOWER, 171 Vo Thi Sau St., District3, Hochiminh City, S.R.VIETNAM HeadOffice Zhong Da Bldg 23, Zizhuyuan S.road Haidian, Beijing, ,CHINA Shanghai Branch Room1307 XinDa Building, No.318 XianXia Road, Shanghai, PRC rd Floor, Equitable Bank Tower, Paseo de Roxas, Salcedo Village, Makati City, PHILIPPINES Kawasan Industri Indotaisei, Kota Bukit Indah Sector IA, Block B Karihurip, Cikampek, Karawan, Jawa Barat, INDONESIA TEL FAX TEL FAX TEL FAX TEL FAX TEL FAX TEL FAX TAISEI CORPORATE REPORT 2013 DATA BOOK 54

56 Corporate Data External Awards / External Evaluations Main awards received from April 2012 to March 2013 Name Type of award Details of award Japan Society of Civil Engineers Japan Society of Civil Engineers (JSCE) Awards 2011 Outstanding Civil Engineering Achievement Award Group I TBM (shield tunneling) and sunken tube method for joining the ocean floor in the tunnel deep in the Bosphorus Strait Undergrounding the continuous grade separation in urban railways that fulfills strict construction requirements Construction for continuous grade separation near Keio Corporation Chofu Station Architectural Institute of Japan Japan Concrete Institute Japan Institute of Country-ology and Engineering Japan Construction Machinery and Construction Association The Nikkan Kogyo Shimbun Institute of Noise Control Engineering of Japan Japan Society of Civil Engineers (JSCE) Awards 2011 Environment Award Group II 2012 Architectural Institute of Japan Awards (Research paper) FY2012 Japan Concrete Institute Award Technology Award FY2012 Japan Concrete Institute Award Best Architectural Work 14th Infrastructure Technology Development Award Grand Award 14th Infrastructure Technology Development Award Excellence Award FY2012 Japan Construction Machinery and Construction Association Chairman s Award FY2012 Japan Construction Machinery and Construction Association Outstanding Research Paper Award 41st Japan Industrial Technology Grand Prix Review Committee Special Award FY2011 Institute of Noise Control Engineering of Japan Awards Environmental Design Award Project to save and preserve the coral and seaweed colonies in the subtropical remote islands Ichiro Nagashima Study on ive and Semi-active Vibration Control of Buildings Design and construction of the Sangi Railway Kayogawa bridge World s first UFC railway bridge Owl Tower TECOREP system Subtitle: Method for closed demolition of superhigh-rise buildings Double Bits Subtitle: Method for automatic bit replacement in shield tunneling Development of the TECOREP system for demolition of superhigh-rise buildings Development and application of the TECOREP system for closed demolition of superhigh-rise buildings over 100 m tall Development and practical application of the TECOREP system for closed demolition of superhigh-rise buildings Development of the TECOREP system for closed demolition of superhigh-rise buildings Incorporation in Key Global SRI Indexes In recent years, socially responsible investment has become the focus of attention. Socially responsible investment seeks to realize stable income from investments by evaluating and screening companies from the perspective of their observance of laws and regulations and their contributions to society and the environment, rather than from an exclusively financial perspective, and judging their sustainability on that basis. As of March 2013, in addition to the Morningstar Socially Responsible Investment Index, * a key domestic SRI index, TAISEI has been incorporated in the FTSE4Good Global Index and the Dow Jones Sustainability Asia Pacific Index. Incorporation in Key Global SRI Indexes * Morningstar Socially Responsible Investment Index: The Morningstar Socially Responsible Investment Index is Japan s fi rst SRI stock price index, covering 150 companies selected by Morningstar Japan K.K. from among domestically listed companies as being superior in terms of social responsibility. 55 TAISEI CORPORATE REPORT 2013 DATA BOOK

57 Third Party Opinion Third Party Opinion The TAISEI Group expressed more clearly that sustainable development of its companies is possible through contribution to the sustainable progress of society, and has placed initiatives to resolve social at the heart of its activities. At the same time, management of CSR activities at construction sites is slowly progressing. Positioning of CSR Considering contribution to the sustainable progress of society as a core corporate pursuit requires working on those activities from an even longer-term perspective than before. Although it is not easy to adjust activities to this perspective and to the market environment that undergoes changes over a short term, it is possible for the TAISEI Group to contribute to society by producing high added value with its strong technological capabilities. In last year s report, I pointed out that TAISEI formulates business plans from a long-term perspective, and I believe that it would be beneficial for the company to offer its stakeholders, in addition to reports of its shortterm financial and non-financial activities, information from a slightly longer-term perspective concerning matters such as the future direction of its initiatives and the vision the company is aiming for, as they relate to its business strategies and CSR and sustainability strategies. This year, the overall positioning has been expressed more clearly. This was done on pages 5-8 of the main section and pages 3-6 of the data section, where the current mid-term business plan was expressed based on the long-term vision, TAISEI VISION 2020 that is itself based on the Group ideal and spirit and was linked to CSR to clarify the overall positioning. However, I look forward to a clearer message about what exactly comprises the TAISEI VISION It is also important for the top management to talk about that vision and clarify its positioning. Management of CSR activities Regarding the management of CSR activities, a selfcheck sheet for CSR measures was drafted this year based on ISO 26000, and discussions were held with each department on the various key to determine KPIs. It is the second year for the designation of KPIs, and I understand that they have become concrete means for raising awareness throughout the company. This is an important point. To address management of CSR at Group companies that was a pending issue, TAISEI began holding briefings last year in which CSR activity interview sheets befitting the actual situation are brought along to conduct interviews and designate KPIs. It is of first and foremost importance to determine the for each entity and share the current situation. I hope that these will not end up as simple individual for each Professor, Faculty of Commerce, Waseda University Ph.D., Business Administration Kanji Tanimoto entity, but rather will be considered as elements for the overall management of the company and, even further, for the overall Group. The same applies for of the supply chain management. Going forward, an important point will be to state the positive contributions and the negative evasions related to increased efficiency of management through the KPIs and how they relate to financial matters. When creating an integrated report, incorporating CSR into the management process and steadily implementing the PDCA cycle is more important than the method of disclosure. Regarding how to express the KPIs, clearly showing a number of points that are considered important for creating a sustainable society in the main section would facilitate comprehension by more stakeholders. CSR procurement in the supply chain The TAISEI Group was late in starting management of CSR procurement in the supply chain, but finally established and disclosed a basic procurement policy in April of this year. I understand that relevant departments that work with suppliers are cooperating together and that TAISEI will hold briefings to assess the current situation, starting with its main suppliers. It is my hope that cooperation and understanding will be requested from many suppliers to have them work together with TAISEI in the development of CSR procurement. Achieving such an effort across-the-board will not be easy but will have strong benefits for both parties. Employees from various departments such as compliance, environment, safety, and information security have been dealing with suppliers, but having these departments work together in their relations with suppliers will be of great significance. I hope that each company will reform and strengthen its management practices from the perspective of CSR, and that the whole Group and the entire supply chain will understand that such actions will lead to higher valuation of the company in the market. TAISEI CORPORATE REPORT 2013 DATA BOOK 56