タダノ（6395） – Integrated Report 2021

Tadano Ltd.Tadano Ltd.Ko-34 Shinden-cho, Takamatsu, Kagawa, 761-0185, JapanPhone: +81-87-839-5555 　Fax: +81-87-839-5743URL: www.tadano.comKo-34 Shinden-cho, Takamatsu, Kagawa, 761-0185, JapanPhone: +81-87-839-5555 　Fax: +81-87-839-5743URL: www.tadano.com*Data published in this report This report provides financial and product information published in the financial results for fiscal year 2020 (ended March 31, 2021) and all other information current as of January 1, 2022.*Data published in this report This report provides financial and product information published in the financial results for fiscal year 2020 (ended March 31, 2021) and all other information current as of January 1, 2022.Integrated Report 2021Integrated Report 2021m_ns_web_0390587912112.indd 1-2m_ns_web_0390587912112.indd 1-22022/01/14 9:25:092022/01/14 9:25:092022.12022.1Why does TadanoWhy does Tadanodo business?do business?Our corporate philosophy of Sozo (Creation), Our corporate philosophy of Sozo (Creation), Hoshi (Contribution) and Kyoryoku (Cooperation) is our business.Hoshi (Contribution) and Kyoryoku (Cooperation) is our business.“Let’s start a steel fabrication business where we can fully utilize our skills.”“Let’s start a steel fabrication business where we can fully utilize our skills.”“If we do meaningful work that benefits people, we will succeed.“If we do meaningful work that benefits people, we will succeed.First, we come together and gather our strengths.”First, we come together and gather our strengths.”“That is the beginning. Then, we must do something new that other people are not doing yet.”“That is the beginning. Then, we must do something new that other people are not doing yet.”“There is no challenge in doing things the same way they have always been done.”“There is no challenge in doing things the same way they have always been done.”These are the words of Masuo Tadano, the founder of Tadano.These are the words of Masuo Tadano, the founder of Tadano.At the heart of these words is the idea that a company can exist only when it is in harmony with the people around it.At the heart of these words is the idea that a company can exist only when it is in harmony with the people around it.He believed that it is because we function best when we have this harmony that we should aim to be of service to people (Contribution),He believed that it is because we function best when we have this harmony that we should aim to be of service to people (Contribution),to combine our efforts as a team (Cooperation), and provide new value to the world (Creation).to combine our efforts as a team (Cooperation), and provide new value to the world (Creation).This is the origin of our Corporate Philosophy as it has come to be today: Sozo (Creation), Hoshi (Contribution), Kyoryoku (Cooperation).This is the origin of our Corporate Philosophy as it has come to be today: Sozo (Creation), Hoshi (Contribution), Kyoryoku (Cooperation).Implementation of this Corporate Philosophy is the ultimate business objective of the Tadano Group.Implementation of this Corporate Philosophy is the ultimate business objective of the Tadano Group.This steel fabrication business that started with just 4 workers and a small factory went on to develop the OC-2,This steel fabrication business that started with just 4 workers and a small factory went on to develop the OC-2,Japan’s first hydraulic truck crane.Japan’s first hydraulic truck crane.The company then boldly took up new challenges, with everyone working together to produce a range of products.The company then boldly took up new challenges, with everyone working together to produce a range of products.Our products are now making contributions to people living and working throughout the world every day.Our products are now making contributions to people living and working throughout the world every day.We want to make something that will contribute to the world.We want to make something that will contribute to the world.We want to be a company that can contribute to the advancement of society.We want to be a company that can contribute to the advancement of society.These are the ideals that have molded the history of Tadano. Sozo (Creation), Hoshi (Contribution), Kyoryoku (Cooperation) are in our DNA.These are the ideals that have molded the history of Tadano. Sozo (Creation), Hoshi (Contribution), Kyoryoku (Cooperation) are in our DNA.0101m_ns_web_0390587912112.indd 3-4m_ns_web_0390587912112.indd 3-402022022/01/14 9:25:102022/01/14 9:25:10Tadano GroupHistoryFor roughly 100 years since its founding in 1919, Tadano has been producing an array of products, including mobile cranes, truck loader cranes, and aerial work platforms, spurred on by the desire to create products that will contribute to the world. The products are used not only in Japan but also all over the world.AR-5500MTR-150Masuo Tadano in his younger days (second from left)TM-2H1919Masuo Tadano starts a welding companyin Hokkaido.Masuo Tadano, the founder of Tadano left Takamatsu, Kagawa, for Asahikawa, Hokkaido, to start a welding business. That day, August 29, 1919, is the day we refer to as the date of our foundation. At that time, welding technology was gaining ground and developing rapidly outside of Japan, and its introduction in Japan was only beginning. Captivated by the sparks of welding, Masuo Tadano was convinced that the technology would make a positive contribution to society and ventured to start a business in Hokkaido. He later went back to his hometown Takamatsu, Kagawa and established Tadano Iron Works Co., Ltd. in 1948.Tadano Iron Works Co., Ltd. at the time of establishment1962Develops the TM-2H truck loader craneThe history of our truck loader cranes, which are the most versatile and commonly used crane models with a wide range of applications, started from the development of the TM-2H in 1962. Today, they constitute our second largest business segment after mobile cranes. In 1983, we developed insulated aerial work platforms, the AT-136TE and the AT-140TE, the third largest business segment. They were well received by parties concerned, because in the development of special purpose vehicle products, including aerial work platforms, we applied technologies accumulated through the development of cranes and factored in user needs based on advance research on the actual conditions under which works are carried out.AT-136TE1970Develops Japan’s first hydraulic rough terraincrane, the TR-150, with a 15-ton lifting capacity.After developing Japan’s first hydraulic truck crane, the OC-2, Tadano worked on the development and sales of hydraulic truck cranes and truck loader cranes. In 1970, we developed Japan’s first hydraulic rough terrain crane, the TR-150, with a 15-ton lifting capacity. This type of crane was developed as a crane that can travel on the road in the Japanese market, while being a self-propelled crane capable of traveling on irregular terrains or soft ground and traveling and handling crane operations in a single driver’s seat. Starting with the development of the TR-150, a number of rough terrain cranes were launched into domestic and international markets. In 1998, we developed the AR-5500M, Japan’s largest-capacity all terrain crane at the time, with a 550-ton lifting capacity.TMC’s plantKozai PlantTransportation of products by bargeMantis CraneGTC-1200Solar panels installed at Shido Plant2005Implements Corporate Social Responsibility(CSR) initiativesIn 2004, a fatal accident caused by a Tadano rough terrain crane occurred on a national road in Okayama Prefecture. After determining that a defect in the safety device was one of the causes of the accident, Tadano issued a large-scale product recall for 15,278 units (8 types and 16 models) in December. This recall incident made us recognize that our cranes being allowed on public roads is a privilege, and revisit how we should be as a company and what kind of management style we should adopt. We started to promote full-fledged Corporate Social Responsibility (CSR) initiatives from 2005. The Tadano Group CSR Charter was established in 2006 to incorporate CSR perspectives in product development and business activities. In 2008, solar power generation panels were installed on the roof of Shido Plant, and barge docking facilities were constructed at Shido Port for environmentally friendly marine transportation.2008Acquires SpanDeck Inc.(currently Tadano Mantis Corporation), a US-basedtelescopic boom crawler crane manufacturerHistory of SpanDeck Inc.196419791990s2007Starts as a prestressed concrete equipment manufacturer.Develops telescopic boom crawler cranes with a lifting capacity of 10 and 13 US tons.Becomes better known as the company’s products were used in large-scale construction projects, such as the Big Dig (a megaproject to construct an underground expressway in Boston).Develops the 200RS telescopic boom crawler crane, with a lifting capacity of 100 US tons.Constructs the Kozai PlantProducts of our Group are used all over the world, and our production sites have expanded across the world. After the acquisition of Germany-based Faun GmbH in 1990, we also established production sites in the U.S. and India in 2008 and 2018 respectively. We roll out the manufacturing culture nurtured in Japan, with safety, quality, and efficiency at the core of our business activities. In addition, the Kozai Plant, the fifth plant in Japan, was constructed in Kozaikita-machi, Takamatsu City, Kagawa in 2019. Constructed based on the concept of “Next Generation Smart Plant: Harmonizing the Balance of People and Machinery, Connecting to the Next Generation of Smart Manufacturing,” the Kozai Plant began full operation in August.1955Develops Japan’s first hydraulic truckcrane, the OC-2, with a 2-ton lifting capacitySince its founding, Tadano Iron Works took on the challenge of developing a variety of products independently and was steadily refining its welding and hydraulic technologies. Taking a hint from information found in a construction machinery magazine, in 1955 the company developed and manufactured its original hydraulic truck crane OC-2, with a 2-ton lifting capacity. Orders for the OC-2, the first of its kind in Japan, poured in from all over the country. It was the company’s first step forward as a crane manufacturer.ATF140N-5-11990Acquires Faun GmbH(currently Tadano Faun GmbH), a German craneand specialized vehicle manufacturerHistory of Faun GmbH1845Justus Christian Braun starts a bronze casting business, the forerunner of Faun.Introduces the world’s first steam-driven fire engine.Produces crane carriers for nearly all leading European crane manufacturers.Develops an all terrain crane with a 30-ton lifting capacity.18901960-1970s1985BEL 5 truck craneAcquisitionof Faun GmbHV 2500CC 12000History of the Demag Mobile Cranes business2019Acquires the Demag Mobile Cranes business (currently Tadano Demag GmbH)We acquired the Demag Mobile Cranes business, which has a solid reputation as one of the world’s leading brands of large all terrain cranes and crawler cranes, to make it possible to cater to the needs of a wide range of customers.18271950198719982008Christian Dingler starts a manufacturing workshop, the forerunner of Demag.Develops the V2500 mobile crane, with a 2.5-ton lifting capacity.Develops one of the largest lattice boom crawler cranes at the time, with a 1,000-ton lifting capacity.Develops one of the largest truck cranes at the time, with a 650-ton lifting capacity.Introduces one of the world’s largest lattice boom crawler cranes CC8800TWIN, with a 3,200-ton lifting capacity.C 28.600-1AC 6.300-1OC-2Christian DinglerPresident gives a speech atDay 1 Event191919481950195419551959196019611962197019721973Masuo Tadano starts a welding company in Hokkaido.Tadano Iron Works Co., Ltd. is established in Takamatsu City, Kagawa by Masuo Tadano, who serves as the first company president, with a paid-in capital of 500,000 yen.Invents a railroad track maintenance machine and begins production for Japan National Railways.Starts development of hydraulic industrial machines.Develops Japan’s first hydraulic truck crane, the OC-2, with a 2-ton lifting capacity.Relocates main plant to present location in Shinden-cho, Takamatsu City.Delivers company’s first hydraulic truck crane exports to Indonesia (four OC-5A cranes).Sozo (Creation), Hoshi (Contribution), and Kyoryoku (Cooperation) are adopted as our Corporate Philosophy.Develops the TM-2H truck loader crane.Develops Japan’s first hydraulic rough terrain crane, the TR-150, with a 15-ton lifting capacity.Develops the AML, Japan’s first automatic moment limiter(a safety device for preventing crane overload).Lists company’s shares on the First Sections of the Tokyo Stock Exchange and the Osaka Exchange.Establishes the company’s first subsidiary outside of Japan,Tadano International (Europe) B.V. in the Netherlands.1980198319841989199019911993199619971998Constructs and begins production at the Shido Plant in Sanuki City, Kagawa.Develops insulated aerial work platforms, the AT-136TE and the AT-140TE.Establishes the Beijing Representative Office in China.Changes corporate name to Tadano Ltd.Tadano Group’s consolidated net sales reach 100 billion yen for the first time(financial results for fiscal year 1989).Acquires Faun GmbH (currently Tadano Faun GmbH), a German crane and specialized vehicle manufacturer.Begins Moai Statue Restoration Project at Ahu Tongariki on Easter Island in Chile.Establishes Tadano America Corporation in Texas, USA.Establishes Tadano-Multico (S.E.ASIA) Pte. Ltd. (currently Tadano Asia Pte. Ltd.) in Singapore.Relocates Advanced Technology Research Center to Hayashi-cho, Takamatsu City, Kagawa.Develops the AR-5500M, Japan’s largest-capacity all terrain crane at the time, with a 550-ton lifting capacity.Implements personnel cuts after recording a net loss three times in fiscal years 1998, 1999, and 2001.2004200720082010201 1201220132014201520162017Issues the largest product recall of approximately 16,000 units of rough terrain cranes.Constructs and begins production at the Tadotsu Plant in Tadotsu Town, Kagawa.Sets lifting equipment as our business domain.Constructs and begins production at the Chiba Plant in Chiba City, Chiba.Establishes Tadano Faun Stahlbau GmbH in Germany.Acquires SpanDeck Inc. (currently Tadano Mantis Corporation), a US-based telescopic boom crawler crane manufacturer.Establishes Tadano Oceania Pty Ltd in Australia.Establishes Tadano Brasil Equipamentos de Elevação Ltda. in Brazil.Establishes Tadano (Thailand) Co., Ltd. in Thailand for making truck loader cranes designed for emerging country markets.Introduces the GR-1600XL (GR-1450EX), a rough terrain crane that boasts the highest lifting capacity in its class worldwide.Acquires Cranes UK Ltd, a distributor in the United Kingdom (currently Tadano UK Ltd).Tadano Group’s consolidated net sales reach 200 billion yen for the first time (financial results for fiscal years 2014 and 2015).Establishes Tadano France SAS in France.Establishes Tadano Italthai Co., Ltd. in Thailand.201820192021Establishes Tadano Nederland B.V. in the Netherlands.Establishes Tadano Belgium BV in Belgium.Establishes Tadano Chile SpA in Chile.Opens the Moscow Representative Office in Russia.Announces strategic minority investment in Manitex International, Inc. (U.S.A.)Establishes Tadano Escorts India Pvt. Ltd. in India.Celebrates the 100th anniversary of the company’s founding.Acquires the Demag Mobile Cranes business (currently Tadano Demag GmbH).Opens the Bangkok Representative Offices in Thailand.Constructs the Kozai Plant in Kozaikita-machi, Takamatsu City.Introduces the AR-7000N, one of Japan’s largest-capacity all terrain cranes,with a 700-ton lifting capacity.Establishes the Tadano Group Mid-Term Management Plan (21-23).03m_ns_web_0390587912112.indd 5-6m_ns_web_0390587912112.indd 5-6*Non-consolidated net sales up to fiscal year 1994, and consolidated net sales from fiscal year 1995.042022/01/14 9:25:142022/01/14 9:25:142019Tadano Business OverviewCorporate Philosophy PyramidBusinessBusinessObjectiveObjectiveVisionCore ValuesBusiness DomainLong-Term GoalsPhilosophy and ValuesLong-Term Goals and PoliciesMid-and Short -Term PlansApplicationto DailyWorkMajor Policies (Safety and Health Policy, Quality Policy,Environmental Policy, Technology Policy)IndustryCharacteristicsMid-Term Management PlanFiscal Year Management PlanBusiness Plans / Action Plans (BP/C&C)The Tadano Group is working to meet the expectations of all stakeholders and to maximize our corporate value.We are also creating an organizational culture that allows for continued learning and growth.Compliance (C)Acting with fairness and honesty by obeying laws, regulations, and rules, in addition to maintaining a high sense of ethicsSafety (S)Prioritizing the safety of society and of all those who make and use our products and servicesQuality (Q)Pursuing quality improvement, including of products, services, and business operationsEfficiency (E)Enhancing efficiency in our business operations, as well as contributing to improvements in customer business efficiency・Becoming No.1 Worldwide in the Lifting Equipment Industry・Attaining a sales ratio of 80% outside of Japan・Becoming a company with stable and high profitability (Attaining an average operating margin of 20%)C onten ts07-0809-1213-1415-1617-1819-2021-22232425-2627-2829-313233-3435-36373839-4041-424344■Value Creation Process■Top Message■Mid-Term Management Plan■ESG and SDGs―Our Commitment to ESG and SDGs―Environmental　Our Commitment to the Environment―Social　Our Promises to Customers　Our Promises Among Employees　Our Promises Among Partners　Our Promises to Shareholders and Investors　Our Promises to Society―Governance　　Corporate Governance　Executives　Officer Compensation■Business Segments―Overview of FY 2020 Business Results ―Mobile Cranes ―Truck Loader Cranes ―Aerial Work Platforms ―Others ■Financial and Non-financial Highlights■Topics■Company Profile and Stock InformationEditorial PolicyHydrauliccranesTelescopic boomcrawler cranesCrawlercranesTowercranesStiff boomcranesFolding boomcranesAerial workplatformsOverheadcranesDocksidecranesOffshorecranesIndustrialcranesProduct categoryoffered05m_ns_web_0390587912112.indd 7-8m_ns_web_0390587912112.indd 7-8Please see our website for further information related to Tadano’s financial results and ESG. 062022/01/14 9:25:152022/01/14 9:25:15● Business ObjectiveImplementing the Corporate Philosophy(Creation, Contribution, Cooperation)● VisionPursuing Further Excellence for the World and the Future● Business DomainOur business domain is Lifting Equipment(Mobile machinery used for lifting loads and carryingout aerial work)● Long-Term Goals● Core Values: C+SQE (SQE based on C)Positioned at the top of Tadano’s corporate philosophy pyramid is our business objective of “implementing the corporate philosophy (creation, contribution, cooperation).” We consider this to be something towards which we must constantly and diligently strive.Our vision is defined as “Pursuing Further Excellence for the World and the Future.” The Tadano Group is working to meet the expectations of all stakeholders and to maximize our corporate value. We are also creating an organizational culture that allows for continued learning and growth.At Tadano, “C+SQE (SQE based on C)” are core values we hold sacred. Compliance forms the foundation for all action at Tadano. Tadano’s core values are “Safety First, Quality Second, Efficiency Third,” and we always uphold them in this critical order of priority. However, since it is impossible to manage our company without the third value of efficiency, we must ensure “Safety First, Quality Second” by any means necessary. Compliance provides the groundwork that enables Tadano to actualize each of these Core Values of Safety, Quality, and Efficiency. These principles and values remain unchanged. Building on these core values, we have set lifting equipment as our business domain and are working toward our long-term goals of becoming No.1 worldwide in the lifting equipment industry, attaining a sales ratio of 80% outside of Japan, and attaining an average operating margin of 20%.With the acquisition of the Demag Mobile Cranes business in 2019, half of the Group’s employees now work overseas, and overseas sales account for 50% of our sales ratio. By realizing “One Tadano” and demonstrating our Group synergies, we will deliver further value to our customers and stakeholders.In times of dramatic change, we will take on the challenge of those various “changes,” including technological innovations and environmental responses, and work united as a Group to become a leader in the lifting equipment industry.With the business objective of implementing our corporate philosophy of Sozo (Creation), Hoshi (Contribution) and Kyoryoku (Cooperation), the Tadano Group stays true to its original missions of “making something that will contribute to the world” and “being a company that can contribute to the advancement of society.” We are working to meet the expectations of all stakeholders and maximize our corporate value, with the vision of pursuing further excellence for the world and the future.This report is designed to help our shareholders, investors, and all other stakeholders gain a deeper understanding of Tadano’s business conditions and its efforts toward sustainable growth through integrated explanations of financial information and non-financial information, such as ESG (Environmental/Social/Governance).We will incorporate feedback from our readers into our efforts to further improve our Integrated Report.Product CategoriesValue Creation ProcessPursuing Further Excellence for the World and the FutureValue Creation ProcessLong-TermGoals・Becoming No.1 Worldwide in the Lifting Equipment Industry・Attaining a sales ratio of 80% outside of Japan・Becoming a company with stable and high profitability (Attaining an average operating margin of 20%)Change in SocietyInputOutput“Further Excellence”誇れる企業の実現Relevant SDGs関連するSDGｓTighter environmental regulations due to global warmingAccelerationof Digital Transformation and Green TransformationDrastic changes in business environment due to COVID-19Increasing natural disastersAging infrastructureDiversity and inclusionComplianceStakeholders’ requestsHuman Capital・Culture that allows for continued learning and growth・No. of employees (consolidated): 5,074Manufacturing Capital・Global production network: 5 domestic sites 5 overseas sites・Advanced manufacturing technologies (including high- tensile-strength steel plates and welding)・Capital investment: 5,666 million yenSocial Capital・Worldwide network: over 100 sites (Group companies and distributors)・Relationships of trust with customers based on quality and service capability・Relationships of trust with business partnersFinancial Capital・Net assets: 145,404 million yen・Interest-bearing debt: 94,586 million yenIntellectual Capital・Over 60 years of experience in the lifting equipment industry・Core technologies such as structural technologies, carrier technologies, and motion control technologies・No. of patents held: 625・R&D expenses: 8,440 million yenNatural Capital・Energy consumption: 11,057 kiloliters (crude oil equivalent / provisional figure)07m_ns_web_0390587912112.indd 9-10m_ns_web_0390587912112.indd 9-10DesigningServicingOne TadanoManufacturing・Truck Loader CranesAerial Work PlatformsHeld the first online plant tours for familiesDelivering・Super Deck・Skyboy・Bridge CheckersMobile Cranes・Rough Terrain Cranes・All Terrain Cranes・Truck Cranes・Telescopic Boom Crawler Cranes・Lattice Boom Crawler CranesTruck Loader CranesNet sales: 186,040 million yen(Operating loss: 4,195 million yen)Outside Japan sales ratio: 49.9%Launch of new products: 9 modelsTadano Forest of Learning Project:First forest maintenance activityCO2 emissions: 26,179 t-CO2 (provisional figure)Completed procedures for restructuring of two German subsidiariesLaunched GENBADE-Support smartphone app for truck loader cranesOther Special-Purpose ProductsCustomer Support (CS)・Before-sales Services (Maintenance)・After-sales Services (Repairs and Parts Supply)Used EquipmentDeveloped successful relationships with stakeholdersTransparent, sound and efficient management (Corporate Governance)Being a Robust CompanyPrepares for and handles various changes and risks correctlyBeing a Company that Continues to EvolveProvides safer and more efficient products by promoting technological innovationBeing a Company that BenefitsSociety and CustomersProvides products and services responding to customer needsBeing a Company that Earns the Esteem of the Greater WorldPromotes compliance and governanceBeing a Company that Earnsthe Pride of its EmployeesMakes the most of human resources and prepares an employee-friendly and rewarding work environmentTadano’s DNAPhilosophy and ValuesWe want to make something that will contribute to the world.We want to be a company that can contribute to the advancement of society.・Business Objective: Implementing the Corporate Philosophy (Creation, Contribution, Cooperation)・Core Values: C+SQE (SQE based on C) (Compliance, Safety, Quality, and Efficiency)082022/01/14 9:25:282022/01/14 9:25:28Top MessageTop MessageMaking “One Tadano” a Reality is My First and Greatest MissionOn my appointment as PresidentI am Toshiaki Ujiie, and I am humbled and honored to serve as the new President and Chief Executive Officer of Tadano Ltd. since April 1st, 2021. First, to everyone who has suffered from the novel coronavirus, and to all of the family, friends, and acquaintances who have stood by to support them, I would like to express my sympathy and best wishes for a rapid recovery. I would also like to express my deep gratitude to everyone for your many efforts to help curb the spread of this global pandemic.There is something that my predecessor, Koichi Tadano (now Representative Director and Chairman), has said to me many times. ‘Innovation is brought about by the young, the foolish, and the outsiders of our world.’ Putting aside the “young” part, I do feel that I fulfill the “foolish” and “outsider” requirements more than adequately. The purpose of appointing a new president is to bring about “change” or reform, and I believe that what is expected of me is speed and boldness in making that change happen. The validity of my “outsider” label will not last for much longer. I hope to implement a variety of initiatives while it remains valid.The Tadano Group has established the long-term goal of becoming No.1 worldwide in the lifting equipment industry, and we are working further to grow our business globally. With the acquisition of the Demag Mobile Cranes business in 2019, half of the Group’s employees now work overseas, and overseas sales account for 50% of our sales ratio. With the progress of globalization, I believe that my first and greatest mission as president and CEO is to make the concept of “One Tadano” a reality.In anticipation of post-COVID timesTo realize sustainable growth and the mid- to long-term enhancement of corporate value, the Tadano Group formulates a Mid-Term Management Plan every three years. We announced the Mid-Term Management Plan (20-22) in April 2020. However, the fiscal year 2020 was an extremely difficult year for us. In addition to the slowdown in global markets resulting from the coronavirus disruption, we also faced a number of challenges that were particular to the Tadano Group, including strategic restructuring in our German subsidiaries and the continuing negotiations with the United States regarding past emissions regulations programs. Moreover, the effects of the coronavirus disruption have accelerated changes that were already in motion, such as changes in the way we work and increasing awareness of environmental problems. In the midst of such change, expectations for the benefits of electrification and other new technologies have grown rapidly. In times of dramatic change, a slow start could put our company in a disadvantaged position. On the other hand, I believe that this same change can also lead us to further opportunities in our efforts to become an industry leader. With this in mind, we decided to revise our plan in the form of the Mid-Term Management Plan (21-23).There are four key points to the revised plan – “Enhanced AT/CC sales and initiatives toward rising clean energy demand following the reorganization of Tadano’s European Operations,” “ESG/SDG Initiatives,” “Digital Transformation and Green Transformation initiatives as catalysts for a shift in business domain: from Lifting Equipment to Lifting Solutions,” and “Advancing the One Tadano Concept, enhancing governance, and diversifying company management.”102022/01/14 9:25:322022/01/14 9:25:3209m_ns_web_0390587912112.indd 11-12m_ns_web_0390587912112.indd 11-12Toshiaki UjiiePresident and CEOEnhanced All Terrain Crane (AT) / Crawler Crane (CC) sales and initiatives toward rising clean energy demand following the reorganization of Tadano’s European OperationsWe have proceeded with the integration of the Demag Mobile Cranes business (now Tadano Demag GmbH), which we acquired in 2019, and our German subsidiary, Tadano Faun GmbH in our efforts to demonstrate synergy as a Group. However, due to the impact of the COVID-19 pandemic, global demand for cranes stagnated, causing major delays in our plans for our European operations. For this reason, in a bid to rebuild our European operations, we decided to undertake business restructuring procedures under German law in October 2020. The requirements for Germany’s restructuring procedures to apply to subsidiaries were that companies be solvent and for there to be prospects for a successful future rebuilding of the business. These procedures were completed in March 2021, and our newly restructured European operations were relaunched. With our aim of returning to profit in fiscal year 2023, One Tadano will provide full back-up for the two German companies.To carry out our restructuring plans, Tadano Europe Holdings GmbH, which will command the European operations, started operating in January 2021. Further, as an initiative for organizational integration, we merged our French subsidiaries, Tadano France SAS and Tadano Demag France SA, into a single company, Tadano France SA, and our UK subsidiaries, Tadano UK Ltd and Tadano Demag UK Limited, into Tadano UK Ltd. We will continue to move forward with the swift restructuring of the European operations, so that they may contribute to the Tadano Group’s long-term growth.❶ Broader and more complete lifting equipment solutions portfolio featuring new, jointly developed models　 ● Plans to introduce 15 new AT models to the market over the next four years❷ Strategically leveraging the best of both companies through an integrated production scheme and reduced procurement costs　 ● Improvement of QCD through vertical integration　 ● Enhancement of cost competitiveness through joint procurement and modularization/commonization of components❸ Optimization of workforce size, operations and organizational structure　 ● Integrated management of functions of Tadano Demag GmbH / Tadano Faun GmbH　 ● Standardization of processes through harmonization of ERP systems　 ● Optimization of workforce❹ Optimization of both companies’ inventory, assets, and balance sheets　 ● Reduction of fixed costs　 ● Reduction of inventory assets　 ● Reduction of pension liabilities, etc.transported to the installation site. The Tadano Group boasts one of the world’s largest crawler cranes with a lifting capacity of up to 3,200 tons. These cranes will be able to play an important role in erecting enormous posts in the harbor and loading onto a dedicated operating vessel. The Tadano Group’s acquisition of Demag at such a time will also be of tremendous value for the rapidly growing offshore wind power generation market in Japan. In addition, Tadano Group’s rough terrain cranes, all terrain cranes, and aerial work platforms are also essential for the construction and maintenance of wind power stations. As such, we predict that these and other of our products will make a major contribution to the Green Transformation (GX) market and to the expansion of business. We also have sales locations all over the world, and with our outstanding engineers, we consider this market to be a great opportunity for Tadano.From the time of our founding, the Tadano Group has held the firm belief that a company can exist only when it is in harmony with the people around it and greater society. Under this belief, we have carried out our business activities while prioritizing harmony with our stakeholders. In this spirit, we want to contribute to a better global environment as a part of society. As we step forward into our second century of business operations, we seek to achieve long-term growth as a company and are engaged in efforts to promote ESG and SDGs.In April 2021, we declared our goal of achieving “Net Zero Carbon Emissions” by 2050. As part of that process, we have set long-term Group environmental targets for 2030 of a 25% reduction in CO2 emissions from business activities and a 35% reduction in CO2 emissions from our products (both compared to the 2019 baseline). For example, for the reduction of CO2 emissions from business activities, we have already been advancing a project to install solar power generation equipment on the roofs of our plants. Installation at our Kozai Plant was completed in October 2021, and work is scheduled to start at our Tadotsu Plant next year. One advanced feature designed to reduce CO2 emissions from our products is the “E-Pack,” which enables cranes to be operated without starting the engine. This function was first delivered in Europe in late 2020, Outline of the restructuring planESG/SDG InitiativesTop MessageDigital Transformation and Green Transformation initiatives as catalysts for a shift in business domain: from Lifting Equipment to Lifting SolutionsWe will work to deliver solutions and operational reforms through the adoption of digital, AI, and telecommunications technologies. Tadano Group products in Europe are equipped with “IC-1 REMOTE,” while “HELLO-NET” is installed in our products in Japan and other markets. These features allow the operating status of a crane and pre-indications of equipment failure to be ascertained in real time with the use of communication satellites and mobile devices. As far as we know, Tadano is the only manufacturer of cranes and aerial work platforms to the globe, and a review of our meeting bodies.Finally, in terms of strengthening of the Board of Directors, we have increased its diversity through a division of duties between the Chairman of the Board and the CEO, an increase in the number of Outside Directors (ratio of internal to outside directors raised from 4:3 to 4:5), and adding women to the line-up of Directors and Audit and Supervisory Board Members.Aim to be No.1 worldwide in the lifting equipment industryoffer such a feature as standard. We began equipping our products with There is something that my supervisor told me in my first job after HELLO-NET in Japan in 2008, and the know-how we have accumulated graduating from university. ‘If you think something is odd, then it most to date has given us an edge in the market. The provision of “lifting definitely is odd. Trust your own senses.’ Ever since then, if something solutions” that go beyond lifting equipment will be one of the Tadano feels wrong, I do not ignore it, but first investigate thoroughly myself. If I Group’s future missions. We will permeate and accelerate Digital still think it is suspect, I make a point of communicating the issue Transformation (DX) in all aspects of operational reform. For example, we properly. When I was appointed as President, my predecessor said to are considering the use of digital technology to ascertain the state of me, ‘Feel free to change anything that you think looks odd from your production lines.outsider’s perspective.’ There are things that seem normal to people who Our products play an active role in the construction industry, where, have been at the same company for a long time, but which I have noticed particularly in Japan, the decline in the working-age population and the were not right. If, having noticed, I did not say anything, then there will number of construction workers as a result of falling birth rates is have been no point to my joining this company.becoming a major problem. As skilled operators who have a complete As well as the internal systems and work processes that need to be mastery of crane operation become fewer in number, we hope to move changed, there is also a wide range of new things to be addressed. toward improving the safety of worksites by employing technological Electrification aimed at decarbonized, clean construction sites, innovations that will achieve the simplification, automation, and automation, and autonomy, using AI to achieve load identification and autonomy of crane operation. We believe the day will come when we are efficient movement, and further reductions in the weight of materials used able to send fully automated machines out into the world. In the area of to make our cranes are some of the many areas where new technologies decarbonization, inevitably, we will need to rely on electricity in some are evolving every day. We have no intention of being the runners-up form or another even more than we have done in the past. We are in the when it comes to the development and implementation of these midst of research to determine how our products as a whole will change technologies. For this reason, I believe that speed is critical. Currently, it with electrification, and we intend to accelerate this work while identifying would be difficult to claim that Japan is ahead of the rest of the world in the needs of our customers. We will provide more details when we have advanced technologies such as electrification and automation. I hope more concrete prospects for launching such products on the market.that all our employees around the world will become more attuned to the Following on from Japan, we plan to establish an Advanced Technology trends and changes in society and that they will act and communicate Research Center in Germany to combine the essence of the superior straightaway. As I said at the start, in times of dramatic change, a slow technological abilities of Japan and Germany, two countries that excel in start could put our company in a disadvantaged position. On the other craftsmanship, and work toward our aim of becoming No.1 worldwide in hand, I believe that this same change can also lead us to further the lifting equipment industry.opportunities in our efforts to become an industry leader. Guided by our vision of “pursuing further excellence for the world and the future,” together with all Group employees, as “One Tadano,” I hope to continue our quest to become No.1 worldwide in the lifting equipment industry.application of offshore wind power generation is already underway in of the Task Force on Climate-related Financial Disclosures (TCFD) in April categories and models, as well as coloring.Wind power generation is attracting attention as clean energy for and we intend to roll it out to other markets going forward.responding to climate change and reducing CO2 emissions. Practical The Tadano Group also expressed its endorsement of the recommendations Europe, and there are expectations for more installation in the future 2021. Going forward, we will proactively disclose climate change-related even in Japan, a country with a small landmass. Offshore wind power financial and management information through our websites and others.generation equipment is usually pre-assembled in the harbor then Advancing the One Tadano Concept, enhancing governance, and diversifying company managementUntil recently, the Tadano Group has differentiated between the Tadano, Demag, and Mantis brands for individual products. From the perspective of long-term global strategy, in October 2021, we consolidated these three brands into the “Tadano” brand. As part of this, we are standardizing previous methods for the naming of product Other initiatives include the synchronization of Group management by standardizing the varying accounting periods used by Group companies, the launch of in-house projects that extend more across 11m_ns_web_0390587912112.indd 13-14m_ns_web_0390587912112.indd 13-14122022/01/14 9:25:362022/01/14 9:25:36Mid-Term Management Plan (21-23)Mid-Term Management PlanBasic PolicyBasic PolicyPursuing Further Excellence, Focusing on the Tadano Red ArrowWinning Both the “Battles in Front of Us” and the “Battle with the Times”The basic policy for the Mid-Term Management Plan (21-23) is “Pursuing Further Excellence, Focusing on the Tadano Red Arrow” and “Winning Both the ‘Battles in Front of Us’ and the ‘Battle with the Times’.”A company of “further excellence” is one that meets the following five requirements. In an environment that it cannot control, namely “market: demand and exchange rate” (Blue Arrow), the Tadano Group focuses on “self-support effort” in business (Red Arrow), to which it adds the outcomes of “investment” (Yellow Arrow) to deliver “performance” (Black Arrow). The basic policy of the Mid-Term Management Plan (21-23) is to “focus on the Tadano Red Arrow” in the pursuit of “further excellence.” Market (Demand, Exchange rate)Self-Support EffortInvestment PerformanceCorporate Philosophy Pyramid“Battles in Front of Us” means responding to and overcoming the immediate economic climate and fluctuations in demand and winning against our competitors. “Battle with the Times” refers to responding to technological innovation and changes in the demand structure amid the rapid, complex, and extreme changes in the times. By continuing to win both the “Battles in Front of Us” and the “Battle with the Times” at the same time, we hope to grow sustainably as a company and increase our corporate value.Philosophy and ValuesPursuing Further Excellence, Focusing on the Tadano Red ArrowWinning Both the “Battles in Front of Us” and the “Battle with the Times”Basic PolicyBasic PolicyDevelop human resources“Battles in Front of Us” include the way we deal with the current state of the economy and demand, as well as how we engage the competition“Battle with the Times” includes how we deal with rapid, complex and extreme changes in technology and structural changes in demandTadano Group’s Corporate Philosophy PyramidThe Tadano Group upholds its business objective of “implementing the corporate philosophy (creation, contribution, cooperation), our vision of “pursuing further excellence for the world and the future,” and core values of “C+ SQE ( SQE based on C ).” These are the philosophy and values we hold sacred and that will remain unchanged no matter how the external environment changes.On that basis, we have identified lifting equipment as our business domain and declared as our long-term goals becoming No.1 worldwide in the lifting equipment industry, attaining a sales ratio of 80% outside of Japan, and becoming a company with stable and high profitability (attaining an average operating margin of 20%).*Our core values, “C+SQE (SQE based on C),” represent that compliance forms the foundation of all our actions. We will always uphold our core values of “Safety First, Quality Second, Efficiency Third” in this critical order of priority.BusinessBusinessObjectiveObjectiveVisionCore ValuesBusiness DomainLong-Term GoalsMajor Policies Long -Term Goals and PoliciesMid-and Short -Term PlansApplicationto DailyWorkIndustryCharacteristicsMid-Term Management PlanFiscal Year Management PlanBusiness Plans / Action Plans (BP/C&C)From the perspective of demographics, lifting equipment is a growth industry and one that we believe has major potential in the long term. However, in the short- and mid-term, demand tends to be volatile despite the uptrends in the long term. Moreover, not only the lifting equipment industry, but business conditions and the economy in general are currently facing an era of instability. In these times of dramatic change, we will take on the challenge of making various changes ourselves, working united as a Group to become a leader in the lifting equipment industry.Background to Revision of Mid-Term Management Plan (20-22)To realize sustainable growth and the mid- to long-term enhancement of corporate value, the Tadano Group formulates a Mid-Term Management Plan every three years. It announced the Mid-Term Management Plan (20-22) in April 2020. However, fiscal year 2020 was an extremely difficult year for us. In addition to the slowdown in global markets resulting from the coronavirus disruption, we also faced a number of challenges that were particular to the Tadano Group, including strategic restructuring in our German subsidiaries and the continuing negotiations with the United States regarding past emissions regulations programs. Moreover, the effects of the coronavirus disruption have accelerated changes that were already in motion, such as changes in the way we work and increasing awareness of environmental problems. In the midst of such change, expectations for the benefits of electrification and other new technologies have grown rapidly. In times of dramatic change, a slow start could put our company in a disadvantaged position. On the other hand, I believe that this same change can also lead us to further opportunities in our efforts to become an industry leader. With this in mind, we decided to revise our plan in the form of the Mid-Term Management Plan (21-23).ContextWe have summarized the context of the Mid-Term Management Plan (21-23), which starts in fiscal year 2021, in the following three points.① Overcoming Corona, Growing Organically Toward Becoming No.1 Worldwide in the Lifting Equipment IndustryWe must overcome the impact of the COVID-19 pandemic on the market and business results and achieve further growth. Due to the three major initiatives (acquisition of Demag Mobile Cranes business, construction of Kozai plant, and establishment of Indian joint venture) that were implemented under the Mid-Term Management Plan (17-19) as the Tadano Yellow Arrow, we have refrained from large investments for the past several years, and our key challenge will be how we can prepare the ingredients we have for future growth and leaps forward. It is in that respect that we have adopted the term “organic growth.”② Enhancing Centrifugal Force (Empowerment) and Centripetal Force (Control), Balancing Both at a High Level“Centrifugal force” refers to our individual businesses and divisions acquiring self-discipline and the ability to develop in a self-contained way at a high standard, while “centripetal force” refers to developing the ability to band the Tadano Group together as a single entity that is heading toward globalization (One Tadano). If we are unable to balance these two forces to a high degree, we will not be able to grow into a truly global company.③ Beginning to Shift Focus From Lifting Equipment to Lifting SolutionsCurrently, our business is the sale of products equipped with crane functions, but as the use of IoT and AI spreads rapidly due to innovation in digital technology, we will integrate digital technology into our products and adapt our business model. Specifically, we aim to respond to the needs of customers and construction sites by offering not only tangible products but also intangible solution services that focus on the lifting function.13m_ns_web_0390587912112.indd 15-16m_ns_web_0390587912112.indd 15-16“Further Excellence” means:● Being a Robust Company● Being a Company that Continues to EvolveGenerate profits● Being a Company that Benefits Society and Customers● Being a Company that Earns the Esteem of the Greater World● Being a Company that Earns the Pride of its EmployeesPriority PointsTo achieve long-term profit growth, we will work to maximize Group synergy as a united Group under the keyword of “One Tadano.”▶ Increase ResilienceWe aim to bolster our resilience to change and achieve stable growth given the high volatility of the lifting equipment industry, which is susceptible to changes in the external environment and demand.▶ Enhance CompetitivenessWe need to deliver products and services with greater added value than those offered by our competitors to ensure that we will continue to be the first choice for our customers. To this end, we aim to be a manufacturer with four synergistic strengths optimally combined to achieve excellence: product competitiveness, product quality, service capability (including parts), and used crane liquidity.StrategiesManagement TargetsIn the Mid-Term Management Plan (21-23), we have adopted net sales, operating profit, operating margin, outside-Japan sales ratio, and ROIC as indicators for the measurement of progress. Management targets for fiscal year 2023, the final year of the Plan, are net sales of 275 billion yen, operating profit of 27.5 billion yen, an operating margin of 10.0%, outside-Japan sales ratio of 66.9% (overseas net sales of 184 billion yen), and ROIC of more than 8.0%.The following five points have been chosen as the priority points of the Mid-Term Management Plan (21-23).▶ Maximize Tadano Group Synergy▶ Engage in ESG and SDGsWe promote ESG and SDGs initiatives mainly through our products and services that derive from our corporate activities throughout the value chain of “Designing, Manufacturing, Delivering and Servicing.”▶ Digital Transformation and Green Transformation InitiativesWe will engage in the provision of solutions and operational reforms through the adoption of digital, AI, and telecommunications technolo-gies, the deployment of environmentally friendly products and services such as electrification, and the establishment of an Advanced Technol-ogy Research Center in Europe.We will work on the following nine strategies to realize the basic policy and priority points of the Mid-Term Management Plan (21-23).① Strengthen Market Position② Enhance the Four Synergetic Strengths③ Engage in Global and Flexible Monozukuri*④ Improve Life Cycle Value　 ⑤ Implement Electrification and AI Solutions⑥ Ensure a Robust Financial Base⑦ Strengthen the Tadano Group and Global Management Structure (Restructuring of European Operations, Growth of Indian Operations)⑧ Digital Transformation and Green Transformation Initiatives ⑨ Empower Human Resources* Monozukuri = Manufacturing with a focus on continuous improvementFY 2020FY 2023 TargetsNet Sales186 billion yen275 billion yenOperating Profit(4.2 billion yen)27.5 billion yenOperating MarginOutside Japan Sales RatioROIC(2.3%)49.9%(2.1%)10.0%66.9%more than 8.0%ROIC: Return on invested capital after tax*Invested capital = Net assets + interest-bearing debt (calculated as average of amount at end of previous fiscal year and end of fiscal year under review)Exchange rate assumptions: 105 JPY/USD; 125 JPY/EUR142022/01/14 9:25:362022/01/14 9:25:36Our Commitment to ESG and SDGsOur Commitment to ESG and SDGsTadano Group and SDGsFrom the time of our founding, the Tadano Group has held the firm belief that a company can exist only when it is in harmony with the people around it and greater society. Under this belief, we have carried out our business activities while prioritizing harmony with our stakeholders. In the spirit of “great harmony,” we want to contribute to a better global environment as a part of the society. As we step forward into our second century of business operations, we seek to achieve long-term growth as a company. These ideas are the reasons for our efforts to promote ESG and SDGs as set out in our Mid-Term Management Plan (21-23).Tadano has also long held our vision of “Pursuing Further Excellence for the World and the Future.” This vision aligns with the aims of the UN’s Sustainable Development Goals (SDGs). We will aim for “Pursuing Further Excellence for the World and the Future” through our products, services, and business activities through the behavior of our individual employees.Initiatives for Pursuing “Further Excellence” and SDGsBeing a Robust CompanyBeing a Company that Continues to EvolveBeing a Company that Benefits Society and CustomersBeing a Company that Earns the Esteem of the Greater WorldBeing a Company that Earns the Pride of its Employees(Common)Specific aimPrepares for and handles various changes and risks correctlyProvides safer and more efficient products by promoting technological innovationProvides products and services responding to customer needsPromotes compliance and governanceWe anticipa te, prepare f or and respond to the external environment that changes in a complex manner. In manufacturing, we are making efforts to build a global production network aimed at optimal local production and to reduce environmental burdens. We have also formulated and operate a business continuity plan to restore important business processes as soon as possible even if unforeseen events arise.We conduct research on safe, highly productive and revolutionary construction solutions for the future, while looking at “the present from the perspective of the future.” Placing the highest priority on securing safety at worksites, we are actively implementing initiatives for further simplifying and facilitating the operation of cranes, automation and autonomy through the use of AI and also the development of electrified products to improve the global environment.We are further evolving core t e c h n o l o g i e s t o m e e t t h e expectations of our customers and society and developing market-oriented, safe and high quality products.In addition, we are developing service personnel in Japan and overseas with high technical capabilities, and also engage in activities to achieve higher product value and quality, while aiming for mutual growth and development with our business partners.We consider compliance and g o v e r n a n c e a s o n e o f t h e important management issues for the purpose of ensuring the transparency, soundness and efficiency of management, and we are implementing various initiatives.We also engage in activities that contribute to society such as forest preservation as part of our efforts to improve the global environment through the actions of each employee.Examples of initiativesRelated SDGsESG・SDGsMakes the most of human resources and prepares an employee – friendly a n d rewarding work environmentWe accept diversity in terms of v a r i o u s f a c t o r s , i n c l u d i n g a b i l i t i e s a n d e x p e r i e n c e . Harnessing it for use inside our o r g a n i z a t i o n w i l l i m p r o v e employee job satisfaction and productivity, helping to create added value. Driven by this belief, we are creating workplace environments and implementing human resources development so that every employee can exert their best performance by utilizing their own talents and individuality. Internal Learning ActivitiesMain comments from participants・ I felt that we will seriously make efforts as a company going forward.・ How about setting numerical goals as a company when undertaking initiatives?・ I would like the initiatives to be taken on a company-wide basis including the supply chain.Scenes from online/offline study groups162022/01/14 9:25:462022/01/14 9:25:46E SG a n d S DG s15m_ns_web_0390587912112.indd 17-18m_ns_web_0390587912112.indd 17-18The Mid-Term Management Plan (21-23) sets forth “Pursuing Further Excellence, Focusing on the Tadano Red Arrow” as one of our basic policies. The definition of “Further Excellence” is being “a robust company,” “a company that continues to evolve,” “a company that benefits society and customers,” “a company that earns the esteem of the greater world,” and “a company that earns the pride of its employees.” We believe that meeting these five conditions is the prerequisite for “Further Excellence” and that aiming to achieve each of these conditions will result in contributing to the SDGs.Going forward, we plan to assess the current status of each of our initiatives and accelerate such initiatives even further, and thereby contribute to society.We started “Engage in ESG and SDGs” activities from FY 2019 and in the first year invited outside lecturers to provide in-house SDG lectures. We also engaged in executive discussion at an all-officer meeting session dedicated to the topic of SDGs.In FY 2020, as the first year of our full-scale efforts, we established the SDGs Promotion Committee with overall responsibility for promoting activities of the Group and the SDGs Promotion Group as a dedicated body for implementing such activities. We have also held study groups for all employees in Japan and overseas for internal dissemination. From the perspective of preventing the spread of COVID-19, these study groups were held online except for those held on-site at plants, etc. and we deepened everyone’s understanding about “What are ESG and SDGs” and “Why is Tadano engaged in ESG and SDGs,” while exchanging small group discussions as well.EnvironmentalOur Commitment to the EnvironmentSetting Long-Term Environmental TargetsIn April 2021, the Tadano Group declared a target of achieving Net Zero Carbon Emissions by 2050 in order to contribute to a better global environment as a part of the society through our products, services, and business activities and through the behavior of our individual employees.In order to achieve this target, we set long-term environmental targets for 2030 compared to the 2019 baseline of a 25% reduction in CO2 emissions from business activities, a 35% reduction in CO2 emissions from products, and a 50% reduction in the volume of industrial waste from business activities.At around the same time, we expressed support for the recommendations of the TCFD. Going forward, we will proactively disclose climate change-related financial and management information through our websites and others.The Tadano Group’s Long-Term Environmental Target 2030〈Reduce CO2 Emissions〉 Compared to 2019 Baseline① CO2 emissions from business activities② CO2 emissions from products25% reduction35% reduction〈Reduce Industrial Waste〉 Compared to 2019 BaselineIndustrial waste from business activities50% reduction17m_ns_web_0390587912112.indd 19-20m_ns_web_0390587912112.indd 19-20EnvironmentalReduction of CO2 from Business ActivitiesSolar panels installed at Kozai PlantSolar panels installed at Advanced Technology Research CenterReduction of CO2 from ProductsPower train testing facility under constructionCrawler cranes loading offshore wind turbine components at a portAC3.045-1 CITY, a city crane, and E-Pack* One of the most compact models among all terrain cranesEnvironmental182022/01/14 9:26:442022/01/14 9:26:44Emissions generated during operation of products account for a large portion of the CO2 emissions in the life cycle of construction machinery. Against such background, Tadano has introduced model upgrades that comply with new exhaust emissions regulations and most of the products manufactured in Europe can be operated with reduced-emission fuels such as hydrotreated vegetable oil (HVO). Also, the CREVO G4 rough terrain crane series is equipped with Fuel Monitoring and Eco Mode functions, while AC3.045-1 CITY, a city crane, is equipped with an E-Pack allowing crane operation without starting the engine. In this way, our cranes support efficient and environmentally friendly operation through reduction of CO2 emissions, improvement of fuel consumption, and low-noise operation, among others.In terms of long-term environmental targets for products, we are currently collecting and scrutinizing various types of data in view of setting standard values. However, we are proactively advancing initiatives such as extending the Advanced Technology Research Center, which conducts research on advanced technologies, and we have constructed a power train testing facility that conducts testing and verification for early realization of the electrification of our products.In addition, Tadano Group’s products are expected to play a big role at construction sites for plants such as wind power stations, which are anticipated to increase due to Green Transformation (GX) in the future. To help our society, we will continue to develop products that contribute to environmental conservation.The Tadano Group works to protect the global environment and help create a sustainable society. The company obtained ISO14001 environmental management system certification in 2008, and has implemented initiatives to minimize the burden on the environment through not only our product development, but also our business activities.Our efforts include installation of 2,000 square meters of solar panels (maximum output: 260kw) at our Shido Plant and reorganization for greater efficiency in production and energy usage. In addition, at the Kozai Plant, constructed under the concept of “Next Generation Smart Plant: Harmonizing the Balance of People and Machinery, Connecting to the Next Generation of Smart Manufacturing,” we adopted an energy management system, which can monitor energy consumption in real time. We also installed solar panels with a maximum output of 1,182.6 kw (power generation started in October 2021). At both plants, efforts are being made to transport products by using energy efficient barges with lower CO2 emissions. We are implementing initiatives to reduce environmental burdens at other locations as well, by promoting the installation of solar panels and conserving energy use for air conditioning and lighting, among others.We are currently collecting and scrutinizing various types of data in view of setting standard values for long-term environmental targets. We will further accelerate our efforts for initiatives such as improving the efficiency of our production facilities, introducing LED lighting, and expanding the use of renewable energy, including at our production sites outside Japan. In regard to industrial waste as well, we will consider and proceed with specific measures for further reductions with the aim of achieving a recycling-based society.SocialOur Promises to Customers[ Our Basic Policy ]Based on its corporate philosophy of Sozo (Creation), Hoshi (Contribution