1. Ensuring Operational Safety
2. Emergency Response System

We have an emergency response system in place to ensure employee safety in the event of a disaster or emergency

Emergency Response System to Deal with Deteriorating Security Situations and Fires

In October 2008, when we settled into our new headquarters in Akasaka, Minato-ku, Tokyo, we developed an Emergency Response Manual for Earthquakes, and our employees were familiarized with it through briefings held in February 2009. In the briefings, we provided every employee with an emergency response card that contains information on an evacuation route, safety precautions during evacuation, the name and address of the company, and personal information of the cardholder, which can be referred to in the event of an emergency.

Emergency Response System to Deal with Deteriorating Security Situations and Fires

In an effort to maintain preparedness for an emergency that could impact our operations, we have developed the Corporate Emergency Response Procedure that outlines action to be taken by headquarters and Operational Organizations in the event of an emergency.

We conducted two emergency response drills under mock emergency situations in fiscal 2008.

The first exercise was conducted on November 4, 2008, in which 14 members of the Corporate Crisis Management Team participated under the direction of the Director in charge of HSE, assuming that a riot had broken out in an overseas city in which we operate. This drill provided the Team with an opportunity to walk through the procedures described in the Corporate Emergency Response Manual.

In the second drill, conducted on March 5, 2009, 25 members of the Corporate Crisis Management Team and members of the Crisis Management Team—set up within the Domestic Project Division—participated on the assumption that an oil tank had caught fire at one of the refineries managed by the Domestic Project Division. In this drill, the team members followed the procedures for notifying the news media, local residents, and regulatory authorities of an incident, confirmed what assistance headquarters would provide to an Operational Organization in an emergency, and prepared a list of equipment necessary for the Corporate Crisis Management Team.

We plan to conduct three emergency response drills in fiscal 2009.

Employee Safety Confirmation System Introduced in Japan for Use in a Devastating Disaster

In 2007, we introduced a texting-based safety confirmation system designed to ascertain the safety of employees and assist the quick recovery of business operations in the event of a large-scale disaster in Japan.

In this system, if an earthquake with an intensity of greater than 5 strikes, a text message will be automatically sent to all employees in the affected area; a text message will be sent to all employees around the country to ask for the verification of their safety if such a major crisis as pandemic flu erupts. Upon receipt of such a message, employees are required to report their status via email. The system enables managers to keep check on whether employees and their families are safe via a dedicated web page.

Since its introduction, we have conducted an exercise once every quarter, and the response rate in the May 2009 exercise reached 96%.