CSR(Corporate Social Responsibility):Message from the President

Establishing a solid business foundation that is essential for the realization of the ideal state we would like to achieve in 2020 on a global scale

While pursuing real productivity improvement accompanied by safety and health, we will prepare for a wide range of risks and promote CSR activities that satisfy stakeholders across the world.

Realization of real productivity improvement

While we belong to the manufacturing business and material industry, we have felt more strongly in recent years that the industry is also in the middle of the fourth industrial revolution. The momentum of productivity improvement, which was triggered by the concept of the IoT, has driven the development of AI to prepare for the anticipated shortage of labor, as well as the emergence of huge data centers with big data as a foundation for manufacturing. In Japan, a related law was enforced from the aspect of work style reforms in April 2019. While we have already worked to improve productivity in our manufacturing sites in a continuous manner, our development, sales and management departments also have to further increase productivity. Meanwhile, we consider that we have to accurately identify and respond to the comprehensive business operation risks incurred because of the changing business environment and properly maintain corporate governance as preconditions for real productivity improvement.
What I consider most important as a policy consistently applied to this matter is "productivity improvement based on the safety-first principle" and I always tell it to employees. This is relevant not only to manufacturing sites. I believe that physical and mental health is also a foundation for creating wisdom and ingenuity to keep evolving the work style reforms based on productivity improvement irrespective of job category or position.

Towards the ideal state we would like to achieve in 2020

Tanaka Kikinzoku Group promotes the GOGO Plan 2020, a six-year medium-term management plan launched in fiscal 2015. The fiscal year 2018 was the first year of the second stage for the GOGO Plan 2020. We set the goal to be reached in three years of the second half of the plan as the "ideal state we would like to achieve" and made efforts to meet the performance targets in the three key precious metal businesses, namely industrial products, assets and jewelry.
In the industrial products business, multiple top management staff members were relocated. Metalor, a principal Group company in Switzerland, changed presidents in January 2019 with the new president taking over the business foundation promoted by the former president, and started to develop a business that seeks a new alloy combining TANAKA and Metalor on a full scale. In the assets business, we also started to offer Gold Accumulation Plans in January 2019, which are Tanaka Kikinzoku's new online accumulation account program that is even more convenient for customers. In the jewelry business, we adopted a policy of going back to the basics under the slogan of "Tanaka Kikinzoku is a synonym of gold = Back to the Gold" to satisfy the demands of the customers who love Tanaka Kikinzoku.
In line with the development of these businesses, we identify and address various risks to us through the Risk Management Committee set up to supervise risk management throughout the Group in fiscal 2015. Subdividing the types of risks to be addressed into natural disasters, occupational health and safety, environmental problems, leakage of personal information, leakage of confidential information, response to conflict minerals and financial derivatives, we evaluate and prioritize the risks and take measures to address them.

GOGO Plan 2020

Pursuit of manufacturing that creates social value

In the meantime, there were two cases where our manufacturing activities received a commendation in fiscal 2018. Firstly, we had the honor of receiving the Japan Industrial Safety and Health Association Chairperson Prize in the FY2018 Occupational Health and Safety Activity Awards of the Japan Industrial Safety and Health Association (JISHA) in recognition of our activities to promote safety and occupational health in manufacturing with understanding of the activities of JISHA, as well as our contribution to the local community and industry. Secondly, Tomioka Plant of Tanaka Kikinzoku Kogyo K.K., which is our mother factory for the supply of materials, received Reviewer's Prize in the Successful Case of Energy Conservation Category of the FY2018 Grand Prize for Excellence in Energy Efficiency and Conservation, which is organized by the Energy Conservation Center, Japan and sponsored by the Ministry of Economy, Trade and Industry. While Tomioka Plant has many precious metal melting furnaces and large-scale processing machines, its activities to reduce and optimize power consumption by compressors, which represents a high percentage of the total power consumption in the plant, were highly evaluated.
We also continue to enhance customer management based on the concept of KYC (know your customer), as well as measures for CSR procurement, at the initiative of Responsible Business Department, which was newly established in April 2018.
In addition, we took measures to respond to the partial enforcement of the Act on the Arrangement of Related Acts to Promote Work Style Reform in April 2019 one year ahead of the requirement, including encouragement of employees to take annual paid holidays for five days in a planned manner, in fiscal 2018. We also issued "Healthy Company Declaration" in December 2018 and are now enhancing activities to acquire the healthy company "silver" certification by the end of fiscal 2019.

To our stakeholders in the world

These various measures are indispensable for us to maintain our business activities in a stable manner and fulfill our corporate social responsibility (CSR). We will continue to certainly address risks with the Risk Management Committee playing the pivotal role.
We will continue to reinforce our business foundation through the improvement of communication and cooperation within the Group and further promote and develop CSR activities to satisfy all stakeholders including customers, suppliers and partner companies all over the world. I would be happy if you read this report and place your expectation on the Tanaka Kikinzoku Group, which will promote CSR activities in a more global way. We will do our best to live up to your expectations.

TANAE, Akira

President & CEO,
Tanaka Holdings Co., Ltd.