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Published Shimizu Corporate Report 2018 SHIMIZU CORPORATE Report 2018 Aiming to Become a Smart Solutions Company Our objective is to grow constantly with society, as a leader in creating environments in which people can live in comfort and security. Contents (Page) (Page) At the Shimizu Group, we are relentlessly pursuing the development of About Shimizu 04 Business Base 51 sustainable structures and a sustainable society while maintaining our focus on the construction business. Management Principles 04 Compliance 52 Our goal is to serve as a “Smart Solutions Company*” that reliably Forging a Path to a New Era through a Spirit of Innovation 06 Risk Management 54 produces value surpassing customer expectations. Shimizu Group’s Business 09 Communicating Corporate Information 56 Message from the President 10 For Fair and Transparent Transactions 57 * Smart Solutions Company: Restoring Trust 10 Contributing to the Global Environment 58 A company that, rather than focusing solely on construction contracting, provides customers with maxi- mum added value and solutions at every level, including proactive business participation, management, The Value that Shimizu Provides to Communities 11 Diversity and Inclusion 63 and investment in promising businesses and areas surrounding the core construction business Smart Vision 2010, Long-term Vision 12 Work-Life Balance 64 Midterm Management Plan 2014 12 Contributing to Society 65 Progress Report on Midterm Management Plan 2014 13 Financial Policy 14 Corporate Governance 67 ESG Initiatives 14 Board of Directors 68 Achieving Sustainable Development Goals (SDGs) 14 Corporate Governance 70 Special Feature Building Value for Society 16 Messages from External Directors and External Audit 74 Achieving Safety and & Supervisory Board Members Security Through the Editorial Policy 16 Construction Industry The Shimizu Corporate Report addresses various topics, including a company history stretching Financial Statements and Data Collection 78 back more than 210 years to its founding in 1804, fundamental management principles, policies and plans, and our current business status.This report is intended to help various stakeholders Creating Communities Key Performance Indicators —Results and Targets— 78 better understand the Shimizu Corporation of today. Where People Can Live 18 List of External Awards 80 Organizations covered Comfortable and Smartly • Head office and overseas and domestic branch offices of Shimizu Corporation and Shimizu Independent Opinion 81 Group companies • CSR performance figures apply only to the head office and domestic branch offices of Shimizu Contributing to Independent Assurance Report / ISO Management Systems 82 the Realization of Corporation 20 Global Network 83 Sustainable Global Period covered Communities Investor Information 84 Primarily covers fiscal 2017 (April 2017 through March 2018); also includes certain activities before and after this period Financial and Non-Financial Highlights (Consolidated) 22 Corporate Information 85 Guidelines referred to Financial Section 87 • Environmental Reporting Guidelines 2012 (Ministry of the Environment, Japan) Initiatives in Various Areas 25 We signed and began participating in the UN • Sustainability Reporting Guidelines, Standard (Global Reporting Initiative) Global Compact in March 2013. Information structure Construction Business 26 Investment Development Business Financial information Non-financial information 32 (Real Estate Development Business) Main published materials Engineering Business 36 Financial highlights Corporate Governance Reports Securities reports Company information LCV (Life Cycle Valuation) Business 38 In September 2015, the 2030 Agenda for Sustainable Development and its 17 Sustainable Development Goals were unanimously adopted at United Materials from briefings on financial Stream DEW Frontier Development 40 results Nations Headquarters in New York. Shimizu will contribute to achieving Civil Engineering Quarterly SDGs through our business activities. Reports (to shareholders) Technology Strategy 42 Shimizu Corporate Report 2018 (Japanese/English) Initiatives in Improving Productivity 44 Shimizu Corporate Report 2018 PDF file (Japanese/English) Human Resource Strategy 46 Corporate activities in general Further Strengthening the Productivity Structure 48 Corporate site https://www.shimz.co.jp/english/index.html Initiatives in Health and Safety 49 IR site: Investor Relations CSR site: CSR Initiatives in Disaster Recovery https://www.shimz.co.jp/ https://www.shimz.co.jp/ 50 en/company/ir/ en/company/csr/ Website 02 Shimizu Corporate Report 2018 Shimizu Corporate Report 2018 03 About Shimizu Initiatives in Various Areas Business Base Corporate Governance Financial Statements and Data Collection Management Principles Faithful Monozukuri and a Spirit of Innovation The Analects and the Abacus: Carrying on the Spirit Shimizu was founded in 1804. Kisuke Shimizu I, who was born in Etchu Toyama, began the company by open- Eiichi Shibusawa, who is called the father of capitalism in Japan, was a great facilita- ing a carpentry shop in Kanda Kajicho, Edo (present day Tokyo). Shimizu’s aim since founding had been to tor in the establishment of numerous private companies and businesses that con- devote wholehearted attention to work and created reliable quality products. In the more than 210 years that tributed to society from the Meiji period onward. He is known for his immense have passed since then, we have incessantly pursued new knowledge and technologies to meet the needs of contributions to the modernization of Japan. our customers and society. Shimizu was also one of the companies that received great benefit from Shibusawa’s Kisuke Shimizu I (the first) and Kisuke Shimizu II (the second), contributions. The connection began with the construction of the Dai-Ichi National Who Built the Foundation of Shimizu Corporation Bank in 1872. The high praise of Kisuke Shimizu II, who built Japan’s first bank using the latest quasi-Western styles architectural techniques, by Eiichi Shibusawa, who Kisuke Shimizu I increased the number of customers with his Eiichi Shibusawa was the Superintendent of the bank, was the beginning of a strong relationship. (photo from the Shibusawa outstanding skills and business acumen, and built the foun- Memorial Museum collection) After the sudden death of Mannosuke, the third generation of Shimizu management dation for the business by undertaking the construction of in 1887, the Shimizu shop at the time welcomed Eiichi Shibusawa as an advisor, the west wing of Edo Castle in 1838, among other projects. based on the last wishes of Mannosuke that they obtain the advice of the esteemed Kisuke Shimizu II built the Tsukiji Hotel, Japan’s first fully Eiichi Shibusawa on all matters. Western-style hotel for foreigners at the end of the Edo period (completed in 1868) at his own expense, and man- The Analects and the Abacus contains the teach- aged the hotel after it was completed. He also built the ings of Eiichi Shibusawa from this era. foundation of Shimizu by designing and building the Dai-Ichi Kisuke Shimizu I Kisuke Shimizu II National Bank (the former Mitsui-Gumi House) and the Mitsui The Analects and the Abacus speaks about the Exchange Bank, which are representative of the early Meiji compatibility of ethics and economics. It conveys period, as well as other projects that demonstrated his inno- the concept that a business can prosper by con- vative spirit, high technical skills, and built trust. tributing to society through ethical corporate activities. Shimizu has always relied on these teachings as the basis of management over the course of our long history since that time. The Dai-Ichi National Bank (former Mitsui-Gumi House) Zuishin Gate of Takada Hachiman Shrine built by Kisuke Shimizu I We will continue to pass on the faithful craftsmanship and spirit of innovation built by Kisuke Shimizu I and II through The Analects and the Abacus, which contains the teachings of Eiichi Shibusawa. These are important principles that must remain constant, even in times of great change. Tsukiji Hotel, Japan’s first fully Western-style hotel 04 Shimizu Corporate Report 2018 Shimizu Corporate Report 2018 05 About Shimizu Initiatives in Various Areas Business Base Corporate Governance Financial Statements and Data Collection Forging a Path to a New Era through a Spirit of Innovation 1804 – 1945 1946 – 2000 Founding to the end of World War II From post-war recovery to establishing a firm position in the general construction industry Kisuke Shimizu I and Kisuke Shimizu II Shimizu hired Eiichi Shibusawa as an advisor and put Management reform and initial public offering Established a new real estate headquarters built the foundation of Shimizu The Analects and the Abacus into practice as the —modernization of management and entered the developer business 1804 basis of management 1948 1971 Kisuke Shimizu I founded the company in 1887 Company name changed from Shimizu Gumi to Shimizu Established a new real estate headquarters and entered the Kanda Kajicho, Edo (present day Tokyo) The teachings of the entrepreneur Eiichi Shibusawa in the Ana- Corporation developer business with the Shinmatsudo New Town Project 1838 lects and the Abacus is designated as the basis for management 1962 policy and the business is managed in accordance with its tenet Kisuke Shimizu I helped to build the west Listed on the first section of the Tokyo Stock Exchange Pursuing full-scale globalization that ethics and economics are compatible wing of Edo Castle 1974 1868 Took
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