Corporate Report 2019 Unique Stories
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KITZ Valves, link to the future Dependable supply of water to any location. Uninterrupted supply of oil and gas. Precision control systems for clean environments. The KITZ Group helps enrich our world by producing precision valves to control the flow of water, air, oil and gas, all the fluids we need to sustain our industries, our communities and life itself. KITZ professionals are in a constant state of challenge, designing and directing the science of fluid flow control to provide products and services that exceed customer expectations, to create innovations that will encompass new fields and new applications throughout the world and to help conduct the flow of civilization into the future. 2019_Kitz_E_0819_2.indd 1 2019/08/21 15:18 Contents Page 03 The KITZ Group’s Value Creation Process 05 KITZ Group’s Growth Trajectory Our Stakeholders To 07 Looking at the KITZ Group by Numbers Page 09 To Our Stakeholders Page 17 09 Message from the President Business Summary and Strategy 15 Message from the CFO 18 Business Highlights Business Summary and 19 Valve Manufacturing Business Strategy 19 Message from Unit General Manager, Flow Control Business Unit 21 KITZ Group + Water 23 KITZ Group + Energy 25 Research and Development System Creating High Added Value 27 Production Systems That Assure High-Quality Products 29 Extensive and Strong Sales Network ESG of the KITZ Group Page 35 31 As a Leading Company in the Valve Industry ESG of the KITZ Group 32 KITZ—A Reliable Brand 36 ESG Initiatives 33 Brass Bar Manufacturing Business 37 Message from Director in Charge of ESG 39 Board of Directors, Corporate Auditors and Executive Officers 42 Corporate Governance 45 Internal Control /Compliance 47 Messages from Outside Directors Page 59 49 Communication with Our Stakeholders Data Section Data SectionData 50 Environmental Activities 59 Financial Data 53 Initiatives to Encourage and Support Human Resources 65 Group Network 55 Diverse Human Resources in the KITZ Group 69 Corporate Data / Stock Information 57 Social Contribution Activities 70 Information 58 Topics Editorial Policy The KITZ Group published Corporate Report 2019 to provide its shareholders, investors and other stakeholders with information about the Group’s initiatives toward sustainable growth. The report focuses on value creation in the short, medium and long term based on the framework presented by the International Integrated Reporting Council (IIRC). Cautionary Note Regarding Forward-Looking Statements This report contains forward-looking statements concerning future plans, measures and other matters that the Company believes are reasonable assumptions based on information that is currently available. These statements contain a number of risks and uncertainties. Therefore, actual results may differ materially from our expectations due to various reasons. 2 2019_Kitz_E_0819_2.indd 2 2019/08/21 14:30 The KITZ Group’s Value Creation Process Based on sound and highly transparent management, the KITZ Group strives to continuously enhance its corporate value through the manufacture and sales of valves utilizing the Group’s strengths. Through these efforts, the Group shall contribute to its shareholders, investors, customers, business partners and employees and to society in various ways and help to create a prosperous society. The KITZ Group’s Strengths Value Creation Process Value Delivery Education system Management strategy that develops a for realizing Oering a variety of motivated products to multiple elds sustainable growth Creation of a comfortable corporate culture living environment through Pages support for the stable supply Integrated production system from 9-16 Pages of water and energy materials to nished products 53-56 Customer/supplier condence Global sales networks and coexistence with local communities Diverse human resources in the corporate culture capable of taking on challenges Development of global human resources and creation of Corporate governance a corporate culture in which Environmental consciousness and Valve manufacturing that realizes sound employees are always harmonious coexistence with society business that generates and highly transparent motivated value as professionals management in fluid flow control Business activities that minimize Pages the impact on the environment and Sound nancial position 39-49 strengthening of the environmental Pages management system 19-32 Continuous enhancement of shareholder value 3 2019_Kitz_E_0819_2.indd 3 2019/08/21 14:30 The KITZ Group’s Value Creation Process The KITZ Group’s Strengths Value Creation Process Value Delivery Education system Management strategy that develops a for realizing Oering a variety of motivated products to multiple elds sustainable growth Creation of a comfortable corporate culture living environment through Pages support for the stable supply Integrated production system from 9-16 Pages of water and energy materials to nished products 53-56 Customer/supplier condence Global sales networks and coexistence with local communities Diverse human resources in the corporate culture capable of taking on challenges Development of global human resources and creation of Corporate governance a corporate culture in which Environmental consciousness and Valve manufacturing that realizes sound employees are always harmonious coexistence with society business that generates and highly transparent motivated value as professionals management in fluid flow control Business activities that minimize Pages the impact on the environment and Sound nancial position 39-49 strengthening of the environmental Pages management system 19-32 Continuous enhancement of shareholder value 4 2019_Kitz_E_0819_2.indd 4 2019/08/21 14:30 Net Sales (Billions of yen) 150 KITZ Group’s Growth Trajectory The Kitazawa Factory (now KITZ Corporation) was founded in 1951 when Japan was in the transition period from the chaotic aftermath of the postwar era to the approaching era of high growth. Guided 100 by the founding principle of Toshio Kitazawa (1917-1997), the Company positioned integrated production as the basis of its operations, in which all processes are carried out under one roof, from materials to finished products and from casting through machining, assembly, inspection and shipment. Furthermore, the Company has built a structure that provides customers with meticulous service and post-sale follow-up. This insistence on “better quality” has been upheld and passed down as the cornerstone of the KITZ Group’s activities. The Group has grown to become one of the world’s pre-eminent corporate groups, developing a solid position as an all-round valve manufacturer that 50 provides a wide variety of products to multiple fields. * Sales from 1951 to 1983: Non-consolidated 0 1951 1955 1955 1960 1960 1965 1965 1970 1970 1975 1975 1980 1980 1985 1990 1995 2000 2005 2010 2015 Toshio Kitazawa Yusuke Shimizu (Term of office: 1951 to 1985) (Term of office: 1985 to 2001) Initial founding, and building a Expansion of product range and growth into an all- Establishment of the trusted production and sales network round valve manufacturer KITZ brand 1974 1992 1951 1962 1985 l Started manufacturing and l Changed name to l Toshio Kitazawa founded the l Company name was changed selling cast steel valves. l Yusuke Shimizu was appointed as KITZ Corporation and moved the Kitazawa Factory. to Kitazawa Valve Co., Ltd. President. 1977 head office to the Makuhari district l 1967 1989 of Chiba City The Nagasaka Plant was l Listed on the Second Section completed and the manufacture l Started manufacturing and of the Tokyo Stock Exchange. l The Nagasaka and Ina plants 1995 and sales of copper valves started. selling ductile case iron valves obtained ISO 9001 quality l 1978 Shimizu Alloy Mfg. Co., Ltd. joined 1952 and stainless steel valves. management system certification, the KITZ Group, enabling the group l became a making KITZ the first Japanese l Nationwide distributors’ 1968 to begin supplying products for registered trademark. company to receive this certification. water supply systems. association was organized, l Started manufacturing and marking the establishment of a selling butterfly valves. 1991 l Spanish ball valve manufacturer ISO distribution system for the 1969 domestic market. S.A. (currently KITZ Corporation of l Started manufacturing and Europe, S.A.) joined the KITZ Group. 1959 selling cast iron valves. l Started manufacturing brass rods. History 1951 1962 1980 1984 1999 The Nagasaka Plant begins operation in Japan’s first forged brass valves Introduced a cast bronze valves Listed on the First Section of KEEPALOY environmentally Japan with just 12 employees in a small called FH and FS introduced. designed handwheel, the Tokyo Stock Exchange. friendly lead-free workshop, not a full factory. “CHRYSANTHEMUM-HANDLE®” dezincification-resistant brass (See page 32 Focus.) bars are developed and 5 announced. 2019_Kitz_E_0819_2.indd 5 2019/08/21 14:30 Net Sales (Billions of yen) 150 100 50 0 1951 1955 1955 1960 1960 1965 1965 1970 1970 1975 1975 1980 1980 1985 1990 1995 2000 2005 2010 2015 Yusuke Shimizu Kimio Kobayashi Yasuyuki Hotta (Term of office: (Term of office: (Term of office: 2008-) 1985 to 2001) 2001 to 2008) Establishment of the trusted Accelerating selection and concentration, and promoting globalization KITZ brand 1992 2001 2008 1985 ● Changed name to ● Kimio Kobayashi was appointed ● Yasuyuki Hotta was appointed as President. ● Yusuke Shimizu was appointed as KITZ Corporation and moved the as President. 2009 President. head office