MEIDENSHA REPORT 2016 MEIDENSHA REPORT 2016 ThinkPark Tower, 2-1-1, Osaki, Shinagawa-ku, Tokyo 141-6029 Japan This report is printed on Printed on paper made with wood Only environmentally-friendly, zero-VOC This report was printed using the Only environmentally friendly printing FSC-certified paper sourced from forest thinning. “Morino (Volatile organic compounds) 100% waterless printing method, which materials and printing methods were from well-managed forests. Chonai-kai” (Forest Neighborhood vegetable oil inks were used in the contributes to reduced output of used to produce this report. Association)—Supporting sound printing of this report. solutions from the printing forest management. process that contain organic compounds. Editorial Policy Contents About Meidensha Report 2016 Focusing on value-creating initiatives of the Meiden Group 1 Prole 4 The Value Creation Process Basic information about the Meiden Group, including our We introduce the process of creating value as based on our For nearly 120 years, Meidensha Corporation (Meiden) has pursued manufacturing excellence and the creation of value to bene t Corporate Philosophy, a business overview, and history Corporate Philosophy, along with some case studies. society. This “passion for manufacturing excellence” will continue to be a core value for us as we aim to contribute to society and 03 Meiden Group Corporate Philosophy 19 The Meiden Group Value Creation Process be a trusted enterprise. 05 Meiden Group Businesses 21 An Example of Value Creation: Value Creation with V-GIS The Meiden Group produced this report to explain our aim of building medium- to long-term value and achieving an af uent 07 Meiden Group History of Creating Value future for society. 09 Financial / Non-Financial Highlights 5 A Foundation for Creating Value Information disclosure tools How we practice environmental management and human 2 Strategy resources development to strengthen our competitiveness Meiden uses its website to offer timely information about the Group that is both wide-ranging and detailed. Representative Director and President Yuji Hamasaki talks 29 Research and Development, and Capital Investments about the progress of our growth strategy and policies going Website: http://www.meidensha.com 30 Supply Chain Management Non-nancial information forward. Financial information 31 Protection of the Environment 11 Message from Management 35 Human Resources Management Shareholder/Investor information MEIDENSHA REPORT 2016 CSR / Others environmental initiatives Discovery Life Lines 3 Introducing the Overview by Business Segment 6 Corporate Governance Meiden way of Meidensha Report taking challenges We introduce the initiatives and results in each business About our management team and corporate governance segment, based on our Medium-term Management Plan. Meiden system Behind Every Fact Sheet Electricity 15 At a Glance Financials Financial Scene 37 Corporate Governance Report Results Meiden Group CSR 2016 A clear and simple 17 V120 Initiatives in Our Main Business Segments A PDF le with detailed overview of 38 Board of Directors & Executive Ofcers non-nancial information about Meiden’s business the Group. 39 Compliance 40 Risk Management Meiden Prole 41 Outline of Meiden Group Editorial Policy Guidelines Used as References Scope of Report Inquiries about the CSR Report Since scal 2013, Meiden Group has issued the Meidensha Report – GRI “Sustainability Reporting Guidelines Version 4” The report mainly covers initiatives of Meidensha Public Relations Section, General Affairs & Public Relations Division combining our annual report and CSR report. – Ministry of the Environment “Environmental Reporting Guidelines Corporation (“Meiden”) and its Group companies. Human ThinkPark Tower, 2-1-1, Osaki, Shinagawa-ku, Tokyo 141-6029 Japan Meiden Group aims to fully integrate our business and CSR (Fiscal Year 2012 Version)” resources data applies to Group companies in Japan, TEL: 81-3-6420-8100 FAX: 81-3-5745-3027 initiatives. This will let us better support the social infrastructure while environmental reporting data applies to Meiden Website: http://www.meidensha.com people need and lead the way to a more prosperous tomorrow. and 39 major Group companies (19 in Japan and 20 Disclaimer We hope that the Meidensha Report will inform and let our readers overseas). In addition to past and current facts about Meiden Group, this report contains know about Group-wide initiatives for achieving our Corporate forecasts for the future based on plans, outlooks and business policies Philosophy. Reporting Period Publication and strategies in effect at the time of publication. These forecasts are our This report mainly covers initiatives taken in scal 2015 (April 1, – Publication of this report: September 2016 assumptions and judgments as based on information available at the time they 2015 - March 31, 2016) – Next scheduled publication: August 2017 were stated, and may differ from actual business activity results and events in future owing to changes in conditions. Thank you for your understanding. 1 MEIDENSHA REPORT 2016 MEIDENSHA REPORT 2016 2 1 Profile Meiden Group Corporate Philosophy Corporate Philosophy The Meiden Group Corporate Philosophy seeks to delight customers by offering high quality products and services to help solve problems. It is also part of our philosophy that through these business activities, we will aim to fulfill our corporate social responsibility (CSR) by proactively solving global environmental problems and other social issues and helping achieve a more affluent future. The Corporate Philosophy expresses our wish to continually take on these challenges. This is our legacy from Hosui Shigemune, who founded our company as Corporate Mission Value Provision a local factory to manufacture and repair electrical machinery. His will remains our common sense of values, even as these have evolved with the times, Illuminating a For customer peace of and remains at the core of all our business activities. Staying true to this Corporate Philosophy, the Meiden Group aims to grow with society and be indispensable to it. With that as our goal, we continually take the challenge of more affluent mind and satisfaction creating new technologies and value. tomorrow We offer complete environmental consideration and appropriate support for our customers. MEIDEN CYCLE We continue to create value and From product design to commissioning, our highly skilled staff help In order to realize our Group Corporate Philosophy, we must identify the technologies for the realization of a more customers solve various issues and realize their dreams by providing direction for each individual employee to aim towards and provide signposts affluent and environmentally aware society. high-quality, socially responsible products and services. to help them proceed without losing their way. To enable us to do so, we have made these five actions our watchwords. The actions are mutually linked, with one action calling forth the next, creating a cycle of action and growth. Based on this image, we call this the Meiden Cycle. Meiden Group Corporate Philosophy By sharing and practicing the Meiden Cycle as the ethos Corporate Mission Value Provision underlying our actions, we seek It denes the raison d’être and corporate mission It denes the unique value provision and core competence Build Loyalty to maximize the growth cycle for each of our employees. And at the same time, this means that the Corporate Code of President’s CSR Policy Meiden Group continues to grow 1 CSR Denition 2 3 4 MEIDEN CYCLE Conduct Order sustainably, looking towards the Under the Meiden Group’s denition of CSR, This code denes compliance in conducting This policy sets forth the policy of our CSR MEIDEN CYCLE shows the guiding spirits realization of the Group Corporate “Each and every employee shall work to our CSR programs and activities. programs and activities in the medium term. shared by all members of the Group in Philosophy. realize the Group’s corporate philosophy so The Policy Order asks each Group employee realizing the Group’s corporate philosophy. that the Meiden Group is needed by society.” to implement CSR programs and activities in their daily work. We will draw up specications that reect the given business climate and CSR challenges under the current stage of the To realize the “best product experiences” for the customers, let’s produce the medium-term management plan. new added-value. Take a pride and responsibility that you are engaged in the job that is creating Build Loyalty the “backbone or social infrastructure of the society.” Make a solid growth as a personal level as well as the corporate level and should reach the level of being “admired” or “trusted” with loyalty by the stakeholders. Do not be afraid the potential conict of opinion with the “associates” and keep in touch with each other beyond the mental barrier. Keep in Touch Have a genuine dialogue with the “customers” to learn their insights. Have a consciousness of being in touch with the community, the society and the global climate. “Is this O.K.?” : Put a question to the status quo. Think Big “Inquisitive mind” and “curiosity.” : You should keep such mind habit. “The road leading to a solution is not just one” : Please explore every possibility. “Act now or perish.” : Take a rst step with your strong will. “Action of today will make your future.” : Make your way towards the goal Move Ahead without hesitation. “Come from your own action with the challenging target” : Take