MEIDENSHA REPORT2014

Meiden Group Corporate Philosophy
Corporate Mission

Value Provision

Il l u m i n a t in g a m o r e a f f l u en t
tomorrow

F o r cu s t o mer p eace o f min d
an d s at is fact io n
We offer complete environmental consideration and

We continue to create value and technologies for therealization of a more afﬂuent and environmentallyaware society.

appropriate support for our customers.
From product design to commissioning, our highly skilled
staff help customers solve various issues and realize their

Editorial policy

C

O

N

T

E

N

T

Since ﬁscal 2013, Meiden Group has issued thesocial infrastructure people need and lead the way

Meiden Group Corporate Philosophy
Message from Management
Meiden Group Businesses
Financial Highlights
Overview by Business Segment

to a more prosperous tomorrow. We hope that the

Dialogue

Meidensha Report will inform and inspire our readers

Meiden Group’s Initiatives to Realizea Smart Society

Meidensha Report combining our annual report andCSR report.
Meiden Group aims to fully integrate our business
and CSR initiatives. This will let us better support theabout Group-wide initiatives for achieving our Corporate
Philosophy.

S
01
03
07
09
11

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dreams by providing high-quality, socially responsible
products and services.

Meiden Group Corporate Philosophy
Corporate Mission
It defines the raison d'être and corporate mission

Value Provision
It defines the unique value provision and core competence

1 CSR Definition

2 Corporate Code of Conduct

3 President’s CSR Policy Statement

4 MEIDEN CYCLE

1 CSR Deﬁnition
Under the Meiden Group’s deﬁnition of CSR, “Each and every
employee shall work to realize the Group’s corporate philosophy sothat the Meiden Group is needed by society.”
2 Corporate Code of Conduct
This code deﬁnes compliance in conducting our CSR programs andactivities.
3 President’s CSR Policy Order
This policy sets forth the policy of our CSR programs and activities in themedium term. The Policy Order asks each Group employee to implement
CSR programs and activities in their daily work. We will draw up
speciﬁcations that reﬂect the given business climate and CSR challenges
under the then current stage of the POWER 5 management plan.
4 MEIDEN CYCLEMEIDEN CYCLE shows the guiding spirits shared by all members of
the Group in realizing the Group’s corporate philosophy.

Scope of Reports 2EPORTING PERIODThis report mainly covers initiatives taken in ﬁscal 2013

Special Feature
Challenges of Meiden Group(April 1, 2013 - March 31, 2014)
s 3COPE OF 2EPORTThe report mainly covers initiatives of Meidensha
Corporation (“Meiden”) and its Group companies. Human
resources data applies to Group companies in Japan,
while environmental reporting data applies to Meiden and46 major Group companies (27 in Japan and 19 overseas).

Guidelines Used as ReferencesUÊ,Êº-ÕÃÌ>>LÌÞÊ,i«ÀÌ}ÊÕ`iiÃÊ6iÀÃÊÎ°£»UÊÊÃÌÀÞÊ vÊ Ì iÊ ÛÀiÌÊ º ÛÀiÌ>Ê ,i«ÀÌ}Ê
Õ`iiÃÊ­ÃV>Ê9i>ÀÊÓä£ÓÊ6iÀÃ®»MEIDEN CYCLE

Publication
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Keep in Touch

In order to realize our Group Corporate Philosophy, we must
identify the direction for each individual employee to aim towards
and provide signposts to help them proceed without losing theirway. To enable us to do so, we have made these ﬁve actions ourwatchwords. The actions are mutually linked, with one action calling
forth the next, creating a cycle of action and growth. Based on thisimage, we call this the Meiden Cycle.
By sharing and practicing the Meiden Cycle as the ethos
underlying our actions, we seek to maximize the growth cycle foreach of our employees. And at the same time, this means that the
Meiden Group continues to grow sustainably, looking towards therealization of the Group Corporate Philosophy.

01

MEIDENSHA REPORT 2014

Think BigTo realize the “best product experiences” for the customers, let’s
produce the new added-value.
Take a pride and responsibility that you are engaged in the job that iscreating the “backbone or social infrastructure of the society.”
Make a solid growth as a personal level as well as the corporate leveland should reach the level of being “admired” or “trusted” withpremium loyalty (royal) by the stakeholders.
Do not be afraid the potential conflict of opinion with the “associates”
and keep in touch with each other beyond the mental barrier.
Have a genuine dialogue with the “customers” to learn their insights.
Have a consciousness of being in touch with the community, thesociety and the global climate.
“Is this O.K.?” : Put a question to the status quo.
“Inquisitive mind” and “curiosity.” : You should keep such mind habit.
“The road leading to a solution is not just one” : Please explore every
possibility.

UÊ iÝÌÊÃV i`Õi`Ê«ÕLV>Ì\ÊÕÞÊÓä£x

Inquiries about the CSR Report
Public & Investor Relations Division, Public & Investor
Relations Section
ThinkPark Tower, 2-1-1, Osaki, Shinagawa-ku,

1 Contribute to the Wide Penetration of
Renewable Energy Resources

19

2 Support Good Running of Next-Generation
Automobiles and Help Achieve a Low-Carbon
Society21

3 Protecting Water Environments with Our
Advanced Water Processing Technologies

23

4 Cultivate Global Talent that can Work Across25
National Boundaries

Tokyo 141-6029 JapanA Foundation for Building Value/ \Ên£ÎÈ{Óän£ääCorporate GovernanceCompliance
Risk Management
Research and Development /Capital Investment / Intellectual Property
Quality and Product Safety
Protection of the Environment
Human Resources Management
Supply Chain Management
Social Contribution Programs

27
29
30

Outline of Meiden Group43

8\Ên£ÎxÇ{xÎäÓÇ7iLÃÌi\Ê ÌÌ«\ÉÉÜÜÜ°i`iÃ >°V°«É«>}iÃÉÌ«É`iÝ° ÌDisclaimer
In addition to past and current facts about Meiden Group,
this report contains forecasts for the future based on plans,
outlooks and business policies and strategies in effect at theMove Ahead“Act now or perish.” : Take a first step with your strong will.
“Action of today will make your future.” : Make your way towards thegoal without hesitation.
“Come from your own action with the challenging target” : Take apositive action.

Have Fun

Let’s enjoy the moment of “personal growth.”
Let’s sincerely enjoy your “job.”
Let’s get “the passion for Manufacturing Excellence”

activity results and events in future owing to changes intime of publication. These forecasts are our assumptions
and judgments as based on information available at thetime they were stated, and may differ from actual businessconditions. Thank you for your understanding.

31
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MEIDENSHA REPORT 201402

Message from Managementof 6.58 billion yen (up 2.555 billion yen year on year).

Driven by our “Sense of Mission,”“Power of being in Touch,” and“Agility,” we support oursocial infrastructures. We aim
to make a Company Grouptrusted by society.

modernize 50-year-old facilities. This is because Meiden Group has

Severe but challenging conditions will continue – Japan’s GDP

supplied various systems and has been in support of social

growth has been sluggish for more than 20 years, the economy will not

infrastructure at home and abroad. We accepted such requests fromsuddenly improve, and the future direction of the global situation ispast experiences. A strong sense of mission in support of social

unclear – but we could see growth in our sales and orders, and would

infrastructure (“Sense of Mission”) cultivated under such businesslike to make the next management plan by drawing on what we haveenvironments of being closely in touch with customers is one of thelearned in the current plan.

basic features of the Meiden Group. Many employees with this Senseof Mission will foster the long-term good relations with our customers.
With this assumption in mind, we will increase job quality and productTowards Business Expansion

quality and thus we create a working system that gives the right

By utilizing our “Sense of Mission,” “Power of beingin Touch,” and “Agility,” we will have it both ways:
Make Our Businesses in Japan stronger and Grow
Overseas

response to our customers. This is a strength of the Meiden Group.
Other strengths include: “Power of being in Touch,” which refers toconnections like a broad network with our customers or the
intra-Group companies’ co-operation beyond the business unit’s line.
Another strength is “Agility,” which refers to our speedy and flexible— How do you see the market environments at

response to our customer’s requests or their problems. We would likehome and abroad and the future outlook?

to further enhance our Group’s competence through the offering of

For the further growth of the Meiden Group, it will be essential for us to

products capable of responding to customer needs and by carefully

have it both ways: make our businesses in Japan (our conventional

fostering good connections within the Group as well as relations withcash-cow business space) stronger and grow overseas.

our customers and by demonstrating our Group’s original proper and

We believe that the Japanese market environment will change

Yuji Hamasaki

greatly in the future. There are issues of aging infrastructures. The

President
Meidensha Corporation

population is in decline, there are spending cuts in the national andregional government budgets, and there are increasing shifts to

The Meiden Group’s Medium-term

overseas capital spending from Japan. At the same time, we expect

Management Plan POWER 5 Phase III

growth of the market in the new business domains coming from theWe will steadily implement priority measures
towards the conclusion of our Medium-termManagement Plan POWER 5

Year in Review on Fiscal 2013its business structure, including the restructuring of Group companies;

factors of power network systems reform, increasing demands for

While the prospects of the economic outlook
uncertain, Meiden Group recorded firm results

develop its power transmission and distribution (T & D) products

renewable energy resources, increasing needs for the energy andbusinesses and grow overseas; and establish the foundations of growing

natural resources saving, and the building of a smart community.

businesses including motor drive products for electric vehicles (EVs), etc.

Meanwhile, regarding overseas markets, against the economic rise

— Fiscal 2014 is the final year of the Meiden

As a result, the Group recorded consolidated net sales of 216.176

of emerging nations mostly in Asia, we believe that demand forGroup’s Medium-term Management Plan

When I think back on the business environment of fiscal 2013, I view itbillion yen (up 18.442 billion yen year on year), operating income ofinfrastructures for local power companies, water supply system and

POWER 5. Please tell us about the Group’s

as a year with a silver lining and a starting-over of the Japanese

9.546 billion yen (up 1.665 billion yen year on year), ordinary income

sewage treatment plants and railroads will continue to grow over the

key policies going forward.

economy after the doldrums. Prime Minister Abe’s fiscal policies, orof 7.79 billion yen (up 1.843 billion yen year on year), and net income

medium to long-term range.

— What was your year in review on fiscal 2013?

Abenomics, corrected the strong yen and brought a bullish stock
market and Tokyo was selected to host the Olympic and Paralympic

Results for consolidated orders, net sales, and income(million yen)

Games in summer 2020.
However, when I look at the world situation, the future outlook

Fiscal 2013 (Planned)

Fiscal 2013 (Results)

Orders received

230,000

232,366

remains unclear. The economic growth rate of emerging nations saw a

Net sales

210,000

216,176

slowdown and there have been on-going conflicts between the West

Operating income

9,000

9,546

and Russia after the Ukraine crisis.

Ordinary income

7,500

7,790

Net income for thecurrent period

5,000

6,580

Given such situations, as key policies of its Medium-termManagement Plan POWER 5 Phase III, Meiden Group worked to reform*See pages 11-12 for details of results for each segment.

03

fast response to customer needs and requests.

MEIDENSHA REPORT 2014

Amid such market environments at home and abroad and for thegrowth of the Meiden Group, we need to return to the basics and utilize
our strengths.

In this final fiscal year of the plan, we will solidly implement key
policies and aim to increase our corporate value further, which isnecessary for new growth strategies.
First, we will strengthen the Group’s overseas business organization.
To realize “Contribution of overseas sales to consolidated sales of— What are Meiden Group’s strengths, and how
are you planning to develop?

30%,” we assigned two executive officers: one in Singapore overseeing
our operations in ASEAN nations and beyond, and the other in Shanghai

Meidensha Corporation (“Meiden”) has 117 years of history and has sooverseeing our operations in the China region. We will continue to work

far grown business through products and services in support of socialon the programs for “Local Production and Local Consumption” byinfrastructure. At times, we received several requests to repair andpromoting product development, production and sales meeting the

MEIDENSHA REPORT 201404

needs of such regions. We will also strengthen our quality assurance

Next is “People’s Mobility Systems focusing on Cars and Railand servicing organization and systems in the Southeast Asian region.

Systems.” The market demand exists for energy saving andThrough such services, we believe it is important to foster long-term

environmentally conscious mobility systems. The Meiden Group isrelations with customers and would like to build good relationships withpromoting product development for railway companies at home andlocal partners doing service provision. Thus, we would like to build solid

abroad. Especially, we are focusing on securing orders from overseas rail

relations with customers and improved systems.

projects. Also, we will work on programs to promote the business of T &[ Society ]D products for railways (traction transformer, switchgear, surge arrester,

Provide values needed by society

In addition to this, on March 31, 2013, we signed a stock
investment agreement with Prime Electric Ltd. (PEL), a supplier ofetc.), especially to railway companies in emerging nations in Asia.

Environment

Ma

SocietyHuman
resources

ie s
n age
ctiv itment foundation of our business a

power transformers in India. By combining our long-term technologies

Finally, in the area of “Water Processing Systems,” we will focus onand quality expertise and PEL’s advanced modern production facility as

increasing the profitability in existing businesses such as electricala synergy, we would like to expand our T & D business in India andfacilities for water purification plants and sewage water treatment plants.

Management foundation of our business activities

In addition, we will focus on sales of ceramic flat-sheet membrane units

Compliance, Corporate Governance and Risk
Management

emerging nations west of India.
We will also strengthen the links between the Group businesses. On

and cloud-computing-based central monitoring systems.

the production front, we newly established the Production Engineering

So far, I have talked about three major fields. We have businessand Management Group (PEMG). PEMG reinforces the common

relations with customers in these fields. The markets in these fields arefunctions among the intra-factory’s QC, production engineering,huge. With the rise of emerging nations, the needs for these fields will

occupational safety and health, productivity and strongly assists theincrease and so this is a business chance. As such, we need to defineGroup to grow overseas. Further, to increase the product competitivenesswhat will be our more specific target fields. To grow in each field in aof surge arresters and to strongly promote the overseas sales, we

unique way, we believe it is vital to make proper investments andmerged our surge arrester company, MSA Co., Ltd. into Meiden. We will

allocate the right people there in a focused manner.

reinforce and promote the product-specific (power generation, T & D,
power conversion and ICT) strategy across the Group companies.

— Since Phase III of the Group’s Medium-termManagement Plan POWER 5, you drafted the— How is the business development going ineach of your business fields?

“President’s CSR Policy Statement.”
The basis of our CSR activities is the practice of our corporate

We can broadly divide the Meiden Group’s business fields into threephilosophy by each and every employee in order to make the Meiden

areas:

Group needed by society. By providing high-quality products andPower and Energy Systems, People’s Mobility Systems focusing on[ Environment ]Promote strategic environmental management
We contribute to society through the offering of products and services for theenvironment and energy. At the same time, we will work to reduce theenvironmental impact of our business activities.

We accept our responsibilities as good corporate citizens through many initiatives,
including: resolution of customer issues; promotion of community involvement andproactive communication; proper information disclosure at the correct time, etc.

[ Human resources ]By strengthening these building blocks of management foundation, we hope tofurther cultivate the corporate culture necessary for CSR management.

Produce work that gives pride to our employees andcreates positive working environments
We will tackle these issues: create a positive working environment that brings out
the best potential and unique talents of each employee; promote better work-lifebalance; and develop abundant and diverse talent, as human resources are
precious to the Group.

services, we assist our customers in solving their problems and realizing

We are promoting personnel policies to improve the working

their dreams, and we thereby provide joy to the customers. Throughenvironment by allowing various working styles while giving variously

these business activities, we will contribute in solving various social

talented employees the chance to fully prove their potential abilities.

infrastructure-related problems, and “Contributing toward realization of

Especially, we actively promote producing a positive working

an affluent and livable future society” is our mission as a supplier ofenvironment for female workers to demonstrate their abilities andexcellent products and services. Sharing this way of thinking across the

improve the related personnel systems.

Group, it is important to solidly support the lifeline infrastructures
essential to people’s lives: power, water supply and rail system.
In the President’s Policy Statement in Phase III, POWER 5, I define
the management base elements: “Compliance,” “Corporate
Governance” and “Risk Management” as the foundation of corporate
activities. Upon them, we will work on “Environment,” “Society” andTo Our Stakeholders

With our “Passion for Manufacturing Excellence,”
we will strive to realize an affluent society andincrease our corporate value.

“Human Resources” as our key challenges. In so doing, we will fulfill

cars and rail systems, and Water Processing Systems; transportation;

our responsibility to our stakeholders.

and water treatment systems.

I believe that the development of our Group depends on our— In closing, do you have any message for our
stakeholders?

First, in the “Power and Energy System” field, we believe that thisfostering of human resources. The fostering of talented people who can

During the course of our nearly 120-year history, we produced various

is an area in which we can play a large role. Against the backdrop ofwork across national and organizational boundaries (“Global Talent”) is

innovations on technologies, products, and services as a supplier of

the Climate Change issue and energy issue, there is a growing need toessential for our future growth. To foster Global Talent, we will send our

excellent products and services. We have been devoting ourselves tobuild a smart community. At the same time, the development of ayoung employees to our overseas subsidiary companies as

the betterment of our products and services in a daily level in order tosystem complementing the disadvantages associated with renewable

intra-company transfers and provide more education training to local

contribute to society. Underneath our conviction lies our sense ofenergy sources is considered as a vital R & D item and we are also

employees of overseas Meiden Group firms and encourage themission and challenging spirit of always responding to the expectations

promoting such development.

promotion of local employees to the managerial level of each firm. We

of our customers and society and our “Passion for Collaborative

We are promoting new innovation in photovoltaic generation, power

will conduct these matters in a planned manner. Personnel

Manufacturing Excellence.” Going forward, we will continue to solidly

conversion systems for energy storage, and distributed energy

management of global human resources is also crucial to our future

implement policies fitting the given business environments and will

resource systems. In the area of micro-hydroelectric facilities, wegrowth, and in order to do so, we are systematically implementing

seek to contribute to realizing sustainable growth and an affluent future

intend to secure new demand for modernizing facilities in Japan andinitiatives including posting young Japanese staff members overseas,society. We also aim to increase our corporate value. We ask allenhancing the training of local staff using overseas training centers,

shareholders, as well as our customers and business partners, to grant

and recruiting executive staff.

us your continued support and advice.

we would like to develop business in overseas projects.
Inspection tour of rotary systems factory (Oota Works, Gunma)

05

Medium-term Management Plan POWER 5
Phase III: President’s CSR Policy Statement

MEIDENSHA REPORT 2014

MEIDENSHA REPORT 201406

Meiden Group Businesses
Since its inception in 1897, we have been engaged in the innovation of various
technologies, products and services as well as the constant pursuit of improvement
for the benefit of the society as an electrical equipment manufacturer.
This reflects our spirit of challenge to meet the expectations of the times by ourcustomers and society and our “passion for manufacturing excellence.”

7

6 Hydroelectric

Substations

power plants

11 Wind turbine power plants

4 Solar power plants

Supervisory control anddata acquisition (SCADA) systemfor power stations and substations

Hydraulic turbine generator

Transformer

Vacuum circuit breaker

96

Mega solar farmWind turbine generator system

Meiden Customer Center

4

PV Inverter

10

7

3

5
11
9 High-rise buildings

2
3 Railways

18
1 Factories

2 Automobile plants
Traction substation for railways

Dynamic voltage compensator

PV power generating system

12 Parks (place for disaster refuge)

Protection relay & control
panel for “Shinkansen Line”

5 Drinking water treatment plants

In-house power generation system

10 Hospitals

8 Electric vehicles (EV)and Sewage treatment plants

Dynamometer

Elevator inverter

Motor drive systemfor elevators

12

Mobile power generating system

Disaster information
management system
Industrial controller

Automated guided vehicle (AGV)

Technological alliance with Myanmar-basedtransformer manufacture and sales company
Asia General Electric Co., Ltd.
Appointment of Junzo Inamura as Chairman andYuji Hamasaki as President
Transfer of maintenance and inspection services
business to Meiden Engineering Corporation,
Meiden Engineering East Japan Corporation,
Meiden Engineering Central Japan Corporation,and Meiden Engineering West Japan Corporation
through corporate divestiture

2014

V

Opening of factory in Singapore

Transfer of power transformation business(transformers, breakers, switchgear, etc.) to
Japan AE Power Systems Corporation

Formulation of Medium-term Management Plan
POWER 5Business and capital alliance with Ono Sokki
Co., Ltd. in the area of automotive testing
instruments

2013

V

1979

2001

2009

Dissolved Japan AE Power Systems Corporation(AEP), a T & D business joint venture of Hitachi,
Fuji Electric and Meiden, to allow betterorganization and separated growth and Meiden
inherited some of the AEP businesses.

V

Construction of Meiden Ohta Works

Appointment of Keiji Kataoka as Chairman and
Junzo Inamura as President

2012

V

1977

2008

In-house water supply system

V

Opening of Gotanda Office

Celebration of our 110th anniversary
Transfer of Head Office to Osaki, Shinagawa
City, with completion of ThinkPark Tower

V

1976

2007

V

Establishment of Japan Motor & Generator Co.,
Ltd. through three-way merger to oversee
high-voltage motor and low- andmedium-capacity generator businessTechnological alliance with GE (high-frequency
thyristor inverters)

Absorption of motor development andmanufacture operations by Kofu Meidensha
Electric Mfg. Co., Ltd. via corporate divestiture
Establishment of Meiden Hangzhou Drive
Systems Co., Ltd., commencement of productionof motors

V

2000

1973

2006

V V

Celebration of 100th anniversary

Adoption of the term “powertronics”

V

MEIDENSHA REPORT 2014

Technological alliance with GE (VI)

1997

1972

V

07

V

1968
Construction of Meiden Osaki Works (1912)

Transfer of Head Office to Chuo-ku, Tokyo

V

V

Construction of Meiden Numazu Works,
commencement of operation of transformer factory
Technological alliance with ASEA (turbine generators)

1995

V

1961

Construction of Meiden R & D Center

V

V

Opening of Head Office in Chiyoda-ku, Tokyo

1993

V

1958

Holding of technology exhibition as a 90th
anniversary project

Merger with Meiden Engineering Co., Ltd.

V

V

Technological alliance with AEG (air-blast
breakers and transformers)

1987

2003

V

1955

Construction of system equipment and device
factory in Numazu
Technological alliance with GE (synthetic fiber
heaters, control equipment, large DC devices)

Cogeneration system(combined heat and power system)

Sling hoist

V

V

Construction of Meiden Nishio Works

Adoption of the phrase “Powertronics,
mechatronics & electronics”

V

1939

1983

V

V

Construction of Meiden Shinagawa Works

Adoption of the phrase “Powertronics &mechatronics”

V

1937

1970

1980

V

V

Construction of Meiden Nagoya Works

Technological alliance with SEVCON (electricalappliances for forklift trucks)
Technological alliance with AEG (thyristor
rectifiers, processing lines)

V

1935

V

V

Registration as limited company (Establishmentof Meidensha Co., Ltd.)

V

1917

Drive system for EV

V

Construction of Meiden Osaki Works

Operation and Maintenance,
Outsourcing Service for Facility
Management

V

1912

1969

V

Establishment of company

Total monitoring system forwater supply and sewage
systemV

1897

V

The first 1 Hp three-phaseinduction motor
built by Meiden(1901)V

Meiden Group History

Vacuum condenser

Capital alliance with India-based transformer
manufacture and sales company Prime Electric
Limited

MEIDENSHA REPORT 2014

08

&INANCIAL (IGHLIGHTSNet sales (millions of yen)Overseas sales ratio (%)

Meidensha Corporation and Consolidated Subsidiaries
Financial indicators

FY2009FY2010FY2011FY2012FY2013

Net sales (millions of yen)

173,067

167,729£n£]£äÇ

197,733

216,177

Overseas net sales (millions of yen)Î£]xÇÇ

ÓÇ]Î£nÓx]ÓxÇ

37,97745,704

£n°ÓÊ

16.3

13.9

19.2

21.1

Overseas sales ratio (%)

Operating income (millions of yen)

9,547

216,177

3,322

x]ÇÇn

6,279

Ç]nn£

9,547

Ordinary income (millions of yen)

£]n£Î

4,613

x]ÓÈÈ

x]{È

7,790

Net income (millions of yen)

971

1,196

1,679

{]äÓx

6,580

Net assets (millions of yen)x{]£ÎÓ

xÓ]ÇÓÓ

xÎ]{ÓÓ

xn]äÇÇ

60,607

Total assets (millions of yen)

ÓäÈ]Èän

ÓäÈ]nÇ£211,733

224,623

248,379

Net assets per share (yen)229.00ÓÓÓ°xÈ

ÓÓx°ÈÎ

Óx£°È{

262.50Net income per share (yen)

{°Ón

x°ÓÇ

7.40

17.74

29.00

Equity ratio (%)

Óx°Ó

24.4

24.2

Óx°{

24.0

173,067 167,729

181,107

7,881

1.9

2.3

3.3

7.4

11.3

6,279
4,025

3,322
18.2

2009

Return on equity (%)

6,580

197,733

5,778

Operating income (millions of yen)

Net income (millions of yen)

16.3

2010

19.2

13.9

21.1

1,679
970

2012

2011

2013 FY

Total assets (millions of yen)

2009

2010

2011

2012

2009

2013 FY

Net income per share (yen)

2010

2011

2012

2013 FY

Cash flows from operating activities (millions of yen)
Cash flows from investing activities (millions of yen)
Cash flows from financing activities (millions of yen)
18,239248,379
206,608 206,871 211,733

1,196

16,274

29.00

224,623

14,71011,443
9,306

Cash ﬂows from operating activities (millions of yen)

16,274

14,71011,443

9,306

18,239Cash ﬂows from investing activities (millions of yen)­x]x££®

­{]Î£n®

­x]È{ä®

(7,136)(11,317)

Cash ﬂows from ﬁnancing activities (millions of yen)

(2,743)­]x®

­x]ä{n®

(7,749)(3,873)

17.74
0
7.40

Notes: 1. Net sales ﬁgures do not include consumption tax, etc.

4.28

-2,743-5,511

5.27-4,318-5,048-5,640-7,749-9,599Non-ﬁnancial indicators

FY2009FY2010FY2011FY2012FY2013

În

39

40

43

42

Japan

24

26

Óx

26

25

Outside Japan

14

13

£x

17

17

Number of employees

7,144

6,994

Ç]£{x

7,920

8,047

33

33

39

40

38

2009

Number of consolidated subsidiaries

CO2 emissions (Japan) (kt-CO2)

2010

2011

2012

2013 FY

Number of employees

6,994

09

MEIDENSHA REPORT 2014

2009

2010

7,145

2011

2011

2012

2013 FY

2009

2010

2011

2012

2013 FY

8,047

Notes: 2. Figures for employee numbers exclude those employees on temporary contracts.
3. The historic Federation of Electric Power Companies (FEPC) nationwide average electric power CO2 coefﬁcient (receiving end) for each year through FY2012
was used to calculate CO2 emissions for that year. The historic coefﬁcient for FY2012 was used for calculating FY2013.
4. With the dissolution of the joint venture Japan AE Power Systems Corporation, the Japan AE Power Systems Corporation Numazu Works (AE Power Numazu)
was incorporated into the Meiden Group as Meiden T&D Corporation in April 2012. CO2 emissions ﬁgures for FY2009-2011 include data for AE Power
Numazu.

Meiden Group has been driving forward business structural reforms including the reorganization of group companies to realize a new level of}ÀÜÌ ÊV>i`ÊvÀÊÊÌ iÊwÛiÞi>ÀÊi`ÕÌiÀÊ>>}iiÌÊ«>ÊiÌÌi`Ê*"7 ,ÊxÊ* >ÃiÊ°Ê}ÊÜÌ ÊivvÀÌÃÊ>i`Ê>ÌÊÃÌÀi}Ì i}ÊÕÀÊ
overseas business, we also have been striving to establish a solid foundation for growth based on our distinctive products and systems forﬁelds with medium- to long-term growth potential such as the electricity and energy systems, automotive, railway and other transportation
systems, and water treatment systems.
As a result, consolidated net sales in the ﬁscal year ended March 31, 2014, increased 9.3% over the previous ﬁscal year to ¥216,176
]Ê«iÀ>Ì}ÊViÊ}ÀiÜÊÓ£°£¯ÊÌÊá]x{ÈÊ]ÊÀ`>ÀÞÊViÊÀÃiÊÎ£°ä¯ÊÌÊáÇ]ÇäÊ]Ê>`ÊiÌÊViÊVÀi>Ãi`ÊÈÎ°x¯ÊÌÊáÈ]xnäÊ°2010-11,316

CO2 emissions (Japan) (kt-CO2)

7,920
7,144

2009

-3,873-7,13620122013 FY

33

33

2009

2010

39

40

2011

2012

38

2013 FY

MEIDENSHA REPORT 201410

Overview by Business Segment

Social Infrastructure Systems Business

Fiscal 2013
Consolidated net sales in fiscal 2013
increased 9.3% over the previous
fiscal year to ¥216,177 million, while
operating income grew 21.1% to¥9,547

million.

Breakdownbybusiness segment is shown on theright.

Consolidated Sales

216,177
Millions of yen

Net Operating Income

9,547This sector includes the manufacture and marketing of equipment for
emergency and non-emergency power generation, hydroelectric power
generation, and power transmission and distribution facilities. We sell theseto power companies, government agencies, railways, and buildings andfactories in Japan and abroad. Other products include traction substations
for railways. We provide the product offerings of power quality stabilization
systems or power generation systems such as solar, wind and hydro power
and offer energy solution services such as smart grid systems.
We are also involved in the fields of drinking water and seweragetreatment for local governments in Japan. Our activities include
manufacturing and sales of electrical facilities for water processing systems
and the related products and services: process control systems and ICT
system improvement services. We also offer solutions services such as
contract facility management services for drinking water treatment plants.

Net Sales
Net sales in the segment increased 3.2% over the previous fiscal year to¥134,007 million, while operating income grew 2.0% to ¥5,756 million. Salesof social infrastructure systems business increased over the previous fiscal year
thanks to growing sales of photovoltaic power conversion systems. Thesesales got a boost now that Japan has introduced a feed-in tariff system for
power from renewable energy resources. Other contributing factors include
strong power sales from our wind farms in Japan and continued strong salesof traction substations and overhead catenary inspection systems for railways.
Sales in the water and environmental business declined from the previous
fiscal year. This was largely because the replacement period of the main electricalequipment for sewage treatment plants in Japan is still some years away.
Sales from overseas system business rose over the previous fiscal year because
of several contributing factors that include the sales of power transformers anddistribution equipment as well as traction substation equipment for railways forSoutheast Asia and the Middle East, and the sales increase for substations andpower distribution facilities for Japanese subsidiary firms abroad.

Industrial Systems BusinessThis sector includes the manufacture and marketing of motors and inverters
for elevators, textile machinery, industrial vehicles, and electric vehicles.
Other products are vacuum capacitors and industrial computers for makers
of semiconductor manufacturing equipment.
We also manufacture and market dynamometers and other testing
systems for automobile manufacturers, and logistics support systems forfactories and warehouses.

Millionsof yenMillions of yen

129,895

134,007

2012

2013

Net Sales
Net sales in the segment rose 32.1% over the previous fiscal year to ¥51,441
million with operating income of ¥1,558 million. These results indicate
recovery in private capital investment, especially in the IT sector andmanufacturing, particularly automobiles and semiconductors.
The segment’s components-related business saw rising sales.
Manufacture of motors and inverters for Mitsubishi Motors Corporation’s
i-MiEV and Outlander PHEV proceeded at a good pace. There was also solid
demand for machinery for semiconductor manufacturing equipment and for
motors for elevators and injection molders.
The segment’s dynamometer and logistic systems business increased
sales. This came amid a steady recovery in demand for testing equipment for
automobile development and electrical components used in forklifts.

Millions of yen

181,106

Millions of yen

197,733

2012

Net Operating Income

7,881

2013

FY

This sector includes rentals of real estate holdings, including ThinkPark Tower(Osaki, Shinagawa City, Tokyo).

Millions of yen

During the period, maintenance demand rose along with the recovering
economy, but there was also greater price competition. Net sales in thesegment increased 5.0% over the previous fiscal year to ¥24,861 million,
while operating income grew 20.5% to ¥1,814 million.

11

2012

MEIDENSHA REPORT 20142013

24,861

2012

2013

Net Sales

FY

This segment includes categories not included in any of the above
segments, such as manufacturing and marketing of electrochemicalmeasuring equipment and electric insulation materials, welfare services for
employees, and goods merchandising. Net sales in the segment declined
3.2% from the previous fiscal year to ¥25,367 million, and operating income
fell 9.2% to ¥879 million.

FY

Net Operating Income

2012

FY

Millions of yen

FY

2013

Net Operating Income

2,281

Millions of yen

2012This sector includes marketing companies not tied to specific business fields,
and companies that contract accounting, payroll, and other administrative
functions, as well as welfare services for employees.

2013

23,675

3,285

Net sales in the segment totaled ¥3,286 million, on a par with the level
achieved in the previous fiscal year, and operating income amounted to¥1,230 million. The Group is engaged in the real estate leasing business,
centering on the office and commercial building ThinkPark Tower (Osaki,
Shinagawa City, Tokyo).

Other Business

2011

2013

1,558

Millions of yen

Net Sales

9,547

6,279

2012

38,934

Net Sales

Engineering Systems Business

Real Estate Business
2011

5,756

-929

This sector provides services relating to the remote management andmonitoring of facilities and the proposal of measures for extending the life offacilities, energy conservation, and other such services related primarily to themaintenance of products we supply. We also engage in the maintenance ofsemiconductor manufacturing equipment and the reconditioning of used
manufacturing equipment.

216,177

Millions of yen

5,876

51,4412012

Net SalesFY

Net Operating Income

2012

FY

Millions of yen

1,814

2013

Net Operating Income

FY

Millions of yen

3,286

2013

FY

Millions of yen

26,20425,367

2012

2013

FY

1,142

1,230

2012

2013

Net Operating Income

FY

Millions of yen

968

879

2012

2013

FY

MEIDENSHA REPORT 201412

Dialogue

Meiden Group’s Initiatives to Realize a Smart Society— Meiden Group will contribute to society and its customers by providing excellent products building theinfrastructure for a smart society life.
Asthenext-generationenergyYokoyama: The power plants and substation facilities are

infrastructure,

now facing aging problems.

throughout the world various programs are being
createdforthecommercializationofFacilities constructed in Japan’s period of high“smarteconomic growth are due for replacement, but the power

Communities.”
We invited University of Tokyo Graduate

utility ﬁrms found it difﬁcult to capital spending in order to

School Professor Akihiko Yokoyama, who conducts

reduce power costs. Going forward, if there is progressresearch on the ideal stable energy supply from thein power sector deregulation and power system reform,

perspective of power system engineering. Together

there will be major challenges for the power utility ﬁrms

with our President, Yuji Hamasaki, they discussed

to maintain power supply reliability levels, not only in thethe challenges and Meiden Group’s roles in realizing

short term but also in the long term, and maintain healthy

the smart communities.

margins for facility capacity. Furthermore, to reduce carbon
oxide emissions, I believe the government policy makers
must think about effective integration of renewable energy

On the Challenges and Trends of Energy
Systemssources like solar and wind power into existing power
network systems and draw up scenarios of future power
network systems that include the issues of deregulation of

Yokoyama: When I look at the trends of Japanese energy

retail sales of electric power and the separation of powersystems, especially nowadays the Japanese government isgeneration and power transmission operations from thepromoting major power system reform due to the impact ofpower utility ﬁrms’ business, etc.

the Great East Japan Earthquake in 2011 (the “Quake”). Until

Hamasaki: The power supply is an infrastructure in

the Quake, the Japanese power utility companies and the

support of the metropolis and people’s lives, and it serves

society in general had been promoting capital investment

as the basis of any industry. As this is the case, one canfor the purpose of stable power supply. In Japan, there

say the power system ﬁeld in which we do business is>ÃÊ LiiÊ >Ê `iÀi}Õ>ÌÊ Ê Ì iÊ «ÜiÀÊ ÃiVÌÀÊ ÃViÊ £xÊ“the prime infrastructure supporting the various social

and the power utility companies had to cut costs to stay

infrastructures.”competitive.

Meidensha Corporation (“Meiden”), the principal

For facility maintenance expenses, they cut spendingV«>ÞÊ vÊ i`iÊ ÀÕ«]Ê Ü>ÃÊ vÕ`i`Ê Ê £nÇ]Ê >`Êto the level of not sacriﬁcing the existing power systemstarted business as a supplier of electric motors andreliability. Then came the Quake. It ignited the demands}iiÀ>ÌÀÃ°Ê"ÛiÀÊ££xÊÞi>ÀÃÊvÊV«>ÞÊ ÃÌÀÞ]ÊÌ iÊL>ÃiÃÊ

for further power sector deregulation and power systemof our customers, engineering and other essential assets

reform. While increasing the options for power consumers

formulated over the years are the result of our customer-

on electric power suppliers, the power utility companies

driven job orientation and quick response to our customers’

have to maintain stable power supply. Under suchneeds. Since the 2000s, we have expanded our systems

conditions, the power utility companies increased thebusiness, moving into the ﬁelds

electricity bill rate and curtailed
capital spending.
Hamasaki: Accordingtothe statistics compiled by theJapan Electrical Manufacturers’
Association and a year-by-yearcomparison, capital investment in power systems declined
signiﬁcantly, and the power demand in Japan also declined.
One of the reasons for this is that thermal and other power
plants have been running at full capacity because of the postQuake shutdown of nuclear power plants and the power utility

HamasakiPresident
Meidensha Corporation

Akihiko Yokoyama
Professor, Division of Transdisciplinary Sciences,
Graduate School of Frontier Sciences,
The University of Tokyoof power and energy systems,
andtransportation

systems

and water processing systems.
Inanever-changing

marketenvironment, our mission is toreview and assess the needs for energy systems and therequired lifecycle of the products building the core of suchenergy systems. Reﬂecting on such considerations, weneed to produce unique products and thus contribute tosociety.

ﬁrms could not draw up a plan for periodic maintenance.

13

MEIDENSHA REPORT 2014

MEIDENSHA REPORT 201414

Dialogue

Meiden Group’s Initiatives to Realize a Smart Society

If we can make our
product fit in withmajor systems, we
can produce productswith added value andcompetitive edge.

The greatest challenge in “going smart”(making intelligent power network
systems) is to integrate distributed
energy resources (DERs) into theexisting central power network system.
Yokoyama:Ê6iÀÞÊ ÌiÀiÃÌ}Ê Ì«V°Ê ÞÊ ÃÞÃÌiÊ `ÀÛiÊ
by power such as water-processing systems and railway
systems will go “smart.” Going “smart” means to add
intelligent value to existing power network systems withoutinconveniencing consumers. We need to let the consumers
become involved with successful system building. Thisis the essence of going “smart” for the power network
systems and is what we call the “smart grid.” One case inpoint is that the power utility ﬁrms asked the consumers to
put intelligent metering devices in the consumer system that
supports the power utility ﬁrms in case they are planningcluster level integration of energy resources from solar andwind power. The power utility ﬁrm then effectively uses
such devices for their grid management. This is a case ofgoing “smart.” As the power utility ﬁrm pays the consumer
for accepting the device in their system, this grid-control
system is a “win-win,” mutually beneﬁcial method.
Hamasaki: The key challenge there is to meet both«ÕÀ«ÃiÃ\Ê ivviVÌÛiÊ }À`Ê VÌÀÊ >ÌÊ Ì iÊ «ÜiÀÊ iÌÜÀÊsystem and customer-introduced devices. A recent article

15

MEIDENSHA REPORT 2014

in The Economist entitled “How to lose half a trillion euros”
addressed the issue of the integration of large-cluster
renewable energy resources into the existing grids in the
EU. One day, power demand declined signiﬁcantly andresulted in a surplus of renewable energy resources andalso resulted in excess energy of thermal power plants
running according to the power demand schedule. The
power produced by the thermal plants was purchasedby the consumers but it would be uneconomical if sucha situation continued. An increase in renewable energy
increases the burden on the existing power supply system,
and in some cases, the existing system is not available forthe power supply. This is a serious issue.
Yokoyama: Since solar power is unstable, it is necessary
to use thermal power plant to adjust the power supply. The
problem is how to cover the cost of maintaining the thermal
power plant. Such cost is shared by each individual consumer.
In order to avoid the case of the EU in Japan, it is important toproceed with the energy policy as originally planned.

What Meiden could do in “Going Smart”
Hamasaki: Meiden has many various experiences inthe distribution power network ﬁeld. In the impact oflarge-scale clusters of solar power and wind power into
the power network systems, we have been conducting
much research on this subject by joining demonstrative

projects under grants by the Japanese Government.
Going forward, we would like to produce good grid control
technologies and products and we would be pleased if we
could contribute in solving this issue.
Yokoyama: Yes, indeed. We are conducting a national
project called “Demonstrative Project for Optimal Control
Technologies for Next Generation Power Transmission
and Distribution Network.” I understand Meiden is amember of this project and is also involved in the project.
This is a demonstrative research project to solve power
distribution issues using grid control. The issues include
voltage control of power distribution systems (when a large
cluster of solar power is introduced to the grid) and theresultant surplus power issue. As the result of this research
project, we are hoping to create a business model where
the operating voltage will be constant and the solar power
can be operated in a stable manner. For this purpose, it
is important to mutually and effectively exchange energyconsumption system information on the consumer sideand grid-side information of the power utility ﬁrm that
controls the grid. Going forward, if many energy storage
batteries are introduced into households, we could utilize
such devices for effective grid control.
Hamasaki: Customers have both economical and noneconomical goals. By collecting such customer informationon their goals, we could utilize such information for grid

control in a large system. In order to produce products toﬁt such a large system, the supplier must understand theoverall system.
Yokoyama: Ideally, my hope is for information disclosure
from supplier to consumer on how each product could be
used, such as the limits of product speciﬁcations.
Hamasaki: Such information from the supplier on the
product and technology somewhat tends to be “pushtype” information like “Here are the new products. Pleasebuy them.” This process could go well if the supplier knows
what the customer wants at a certain level. At Meiden
Group, we call it “The Power of being in Touch.”
When we make new products, parts and subsystems
to ﬁt a large system, it needs to satisfy our internal clearanceÌÊÛiÀvÞÊÌ iÊLÕÃiÃÃÊÃiÃi\ÊvÊiÊVÕ`ÊiÝ«iVÌÊ>ÊViÀÌ>Ê
volume of production or if such products have constantdemand in the market. When it comes to systems, ideallysuch systems should be customized for each country. If
the products or components could not be deployed atsimilar speciﬁcations to any country, it could not enjoy
the merit of scale. In this way, “system business” and“individual product business” have different characteristics.
If we could incorporate customer needs into the products
to ﬁt the system, we could produce products with added
value and competitive edge and they could meet the broadsystem applications.

Going “Smart” means
adding intelligent value
to existing systems withoutinconveniencing consumers
Akihiko Yokoyama
Professor, Division of Transdisciplinary Sciences, Graduate
School of Frontier Sciences, The University of Tokyo
Carrier:
Professor Yokoyama was born in Osaka in 1956. He graduated from The University ofTokyo’s Faculty of Engineering in 1979, and received his Ph.D. in engineering from thesame university in 1984. Following periods as a visiting researcher at the Universityof California and the University of Texas, in 1989 he was appointed an assistantprofessor on the Faculty of Engineering, The University of Tokyo, and in 2000 becamea professor in the university’s Graduate School of Engineering. He has held his present
position since 2008. Professor Yokoyama also serves in positions including Chairmanof the Japanese National Committee of CIGRE; Chairman of the Electric Power Safety
Subcommittee of the Ministry of Economy, Trade and Industry; Leader of the System
Design Working Group of the Electricity Systems Reform Subcommittee of the Ministryof Economy, Trade and Industry; and President of the Electric Power System Councilof Japan.

MEIDENSHA REPORT 201416

Special Feature

Dialogue

Meiden Group’s Initiatives to Realize a Smart Society

There is a good business potential inadvancing the existing power network
systems.
Yokoyama: At the university, we can see a resurgenceof recognition on the importance of producing excellent
products in Japan, and there is a return of student interestin getting jobs at the major suppliers (manufacturers)
in Japan. In the current university curriculum, there is aproblem of too much specialization. There is a lack of amulti-disciplinary curriculum covering electrical engineering,mechanical engineering and material engineering.
iVÌÀV>Êi}iiÀ}ÊVÕÀÀVÕÕÊVÛiÀÃÊ>ÊLÀ>`ÊÀ>}i\Êfrom communications to computers to semiconductors. I
believe that we need to teach students up to the productdesign, engineering, and production system in the curriculum.
Hamasaki: In the age of global competition, we needto produce excellent products with many stories to tell.
Well-engineered products with due consideration andunderstanding of material selection, ﬁnished design, ease ofoperation and post-sales servicing will alone have a competitive
advantage. What matters for this product development is to}ÊLÌ ÊÜ>ÞÃ\Ê«ÕÀÃÕiÊi>V ÊÃ«iV>âi`ÊiÝ«iÀÌÊwÊi`Ê>`Ê>ÌÊÌ iÊsame time to have broad generalized knowledge to make theﬁnal educated decision. One may say, “T-shaped professional”
or “/ (Pi)-type professional.” A T-shaped professional is, forÃÌ>Vi]Ê>Êi}iiÀÊ­Ã«iV>âi`ÊÜi`}iÊvÊi}iiÀ}\Êvertical stem of the T) and with good complementary skillsof presentation like communication and a good sense of
marketing (horizontal crossbar). Such talent. The “/ (Pi)-type
professional has in-depth specialized knowledge in morethan two ﬁelds. That would be better. We expect that ouremployees will strive to broaden their ﬁelds of knowledge andat the same time, deepen their specialized knowledge, andthat they should select such ﬁelds by their own decision. They
should get there by deciding their tasks and goals.
Yokoyama: Recently at the graduate school where I teach,
students can have the opportunity to receive lectures insubjects outside their speciﬁc ﬁeld of specialization. My hopeis that the students will learn that power network systems
are also the network of the economy linked with the society.
Since a power network system is designed to be used for a
century, it is important to deﬁne how to advance the existing
system into what direction. By clarifying the future course,
you might ﬁnd the business opportunity there.
Hamasaki: In the area of communications, the infrastructure
was built by using the new optic ﬁber networks to provide
vast information services. In the case of power infrastructure,
however, we have to innovate on the existing systems andwhile maintaining the social economics, we need to improveon the services. There are many limitations out there but I
got the feeling that a new chapter of development will open
later from deregulation of market entry licensing and fullderegulation of retail sales of electric power, etc.
The power network systems are now a vital systemcomponent in society. Meiden Group is working on
programs relating to renewable energies sources like solar
power, wind power, and micro-hydroelectric power. With
this as a launching pad and by drawing on our power
distribution technologies accumulated over the years, wewould like to provide products relating to the broad senseof “smart grid” and thus contribute to society.

Contribute to the Wide
Penetration of Renewable
Energy Resources

19

Support Good
Running of Next-Generation
Automobiles and Help
Achieve a Low-Carbon
Society

21

Protecting Water
Environments with
Our Advanced Water
Processing Technologies

23

Cultivate Global Talentthat can Work AcrossNational Boundaries

25

Challenges of Meiden Group

Meiden Group’s
New Challenges to
Realize a
Sustainable Society
Meiden Group has been pursuing the art of collaborative
manufacturing excellence that contributes to society throughits outlook of what the society wants, given a 50- or 100year timeframe. In 2012, we established our “Environmental
Vision” for “Contribution to Realizing a Sustainable Society”.
We would like to play a role in realizing a sustainable society
through our products and innovations as well as through oursocial infrastructure-supporting businesses (energy and water
processing ﬁelds).
Given the major changes in Japanese energy policy andthe climate control issues in the world today, Meiden Group’s
playing ﬁelds in contributing to society are expanding due toour collaborative manufacturing excellence, innovations andR&D power. Drawing on our long-standing experience and solidengineering resources and by cultivating HRs, we intend to makeconscious efforts to ensure our Group is needed and trusted bysociety.

17

MEIDENSHA REPORT 2014

MEIDENSHA REPORT 2014

1

Special Feature

Photovoltaic PCSs Help to Reduce Power
Transmission Loss and Construction Costs

Challenges of Meiden GroupThe Agency for Natural Resources and Energy announced a Basic Energy Plan in April 2014, the ﬁrst such plan after the Great East
Japan Earthquake of 2011. A key theme of this plan is the promotion of renewable energy resources for the purpose of building a
ﬂexible energy demand and supply system in a multi-layered, diverse, and ﬂexible manner.
Meiden Group started developing power conditioning subsystems (PCSs), a key part of photovoltaic power generation, in the early
1980s. Over the years, we accumulated supply records by implementing various research programs and demonstrative projects. We
also do business relating to wind and hydroelectric power. We endeavor to not only sell products but also engage in various businesses%

growth overprevious yearkW

89,000kW

FY2012A F o u n da t i o n f o r Bu i l di n g Va l u e

in all aspects of power generation systems: from initial total system engineering to plant construction, facility management and

160

233,000
Spe c i a l Fe a tur eContribute to the Wide
Penetration of
Renewable Energy Resources

In ﬁscal 2013, Japan enacted its feed-in tariff systemfor power from renewable energy resources, thereby
increasing sales of photovoltaic power conversion
devices.
In 2012, we released the SP310 Series PCS.
This photovoltaic power conversion device offers
conversion efﬁciency that is among the best in theindustry for a PCS with a built-in transformer. SalesvÊ Ì iÊ Óxä7ÕÌ«ÕÌÊ ÌÞ«iÊ Li}>Ê Ê Óä£Ó]Ê vÜi`Ê
in 2013 with the introduction of a new 100-kW type.
/ ÃÊÃiÀiÃÊ >ÃÊ>`iÊÌÊ«ÃÃLiÊÌÊÕÃiÊÕ«ÊÌÊÇxäÊ6ÊvÊ
power, which is the upper limit for low-voltage power
under Japanese regulations. This helps to reducetransmission loss and lower construction costs.
The Meiden Group is also engaged in the EPC(engineer-procure-construct) business. By expanding
PCS sales and taking advantage of knowledge
gained over many years, we provide comprehensive
solutions for photovoltaic power systems to enable
our customers to operate with conﬁdence over thelong term.

PCS capacity sold annually

FY2013maintenance services. In this way, through these various operations, we contribute to the realization of a low-carbon society and aim
for the best mix of distributed energy resources to the grid.

Kumamoto Ichibu Solar Farm in
Kumamoto Pref., Japan

Yamanashi Mega-Solar Farm at
Kai City, Japan

Yamanashi Mega-Solar Farm at
Nirasaki City, JapanA ceremony celebrating 1,000th
SP310 Series PCS shipment

Electric Power Sales by Wind PowerOu tl i ne o f Mei d en G ro up

Our business of electric power sales by wind power
had very strong results in ﬁscal 2013. Through Group
company, M Winds Co., Ltd. and its afﬁliates, theMeiden Group sells electric power generated by windfarms at three locations* in Japan. Total power sales
equal about 100,000 MWh/year (ﬁscal 2013 results).
IÊ>V ÀÞÕÊ7`Ê>ÀÊ­Ì>Ê*ÀiviVÌÕÀi®\Ê£nÊÜ`ÊÌÕÀLiÃÊqÊ/Ì>Ê«ÜiÀÊ}iiÀ>ÌÊV>«>VÌÞÊÓnÊ7
Ê 7>>Ê ÕÌÞÊ7`Ê>ÀÊ­Ã >Ü>Ê*ÀiviVÌÕÀi®\Ê£äÊÜ`ÊÌÕÀLiÃÊqÊ
Total power generation capacity 20 MWÊÃ Ê - Ã>Ê 7`Ê >ÀÊ ­ L>Ê *ÀiviVÌÕÀi®\Ê ÓÊ Ü`Ê ÌÕÀLiÃÊ qÊ /Ì>Êpower generation capacity 3 MW

Hachiryu Wind Farm (Akita Prefecture, Japan)

Strengthen Our Hydroelectric Power
Generation System BusinessGoing forward, we will strengthen our business for hydroelectric power, which is one of the renewableenergy resources. We have created an organization dedicated to the business development of hydroelectric
power systems, and we also formed a business alliance with EAML Engineering Ltd., a Japanese hydroturbine supplier. By combining our strong variable-speed control technologies, we hope to realize the
efﬁcient operation of small-scale hydroelectric power systems.
Yamanashi Mega-Solar (Kai)19

MEIDENSHA REPORT 2014

MEIDENSHA REPORT 201420

Special Feature2
Our Development Programs on Motor
Drive Units for EV

Challenges of Meiden GroupElectric vehicles (EVs), hybrid cars, etc. are becoming increasingly popular due to high gasoline prices and concerns over climate
control, etc. The motor drive units support good operation of these vehicles using electricity or hydrogen as the energy source. Motordrive units are key components of environmentally conscious cars that reduce CO2 emission and run quietly. In motor drive unit
operation. We contributed to the wider acceptance of next-generation vehicles.
Further, we are joining the local community program on EV car sharing in Tokyo. In addition to the production of key components,
we contribute to the program by teaming with the local community on the issue of climate control.

Part of our motor production line

A F o u n da t i o n f o r Bu i l di n g Va l u edevelopment, we seek compact, lightweight and high-performance models. We helped to realize powerful acceleration and stable

Spe c i a l Fe a tur e

Support Good Running of
Next-Generation Automobilesand Help Achieve a
Low-Carbon Society

Meiden’s development history of motor drive unitsvÀÊ 6Ê ÃÌ>ÀÌi`Ê Ê ££]Ê Ü iÊ ÜiÊ >`iÊ >Ê ÌÊdevelopment program with Tokyo Electric Power Inc.
vÀÊ `iÛi«iÌÊ vÊ >Ê 6Ê V>ÀÊ V>i`Ê º<»°Ê Ê ÕiÊ
2009, Mitsubishi Motors Corporation (“Mitsubishi
Motors”) started the world’s ﬁrst mass production of>Ê 6ÊV>ÀÊV>i`Êº 6°»Ê-ÕÌ>iÕÃÞ]ÊÜiÊÃÌ>ÀÌi`ÊÌ iÊÃÕ««ÞÊvÊÕÀÊÌÀÊ`ÀÛiÊÕÌÃÊvÀÊÌ iÊ 6°
Currently, we are producing four types of motor`ÀÛiÊÕÌÃÊvÀÊ`vviÀiÌÊÌÃÕLÃ Ê 6Ê`iÃ]ÊVÕ`}Ê
Ì iÊº"ÕÌ>`iÀÊ*Õ}ÊÞLÀ`Ê 6Ê­* 6®°»Ê7iÊVÌÕiÊ
to work to establish an efﬁcient mass-production system
and would like to reﬁne this product by improving such
V>ÀqÀi>Ìi`Ê ÃÃÕiÃÊ >ÃÊ ÃiÊ >`Ê ÛLÀ>ÌÊ Ài`ÕVÌÊand by realizing compact and lightweight motor drive
units. As we made a foray into the world’s ﬁrst mass«À`ÕVÌÊ vÊ 6Ê V«iÌÃ]Ê ÜiÊ ii`Ê ÌÊ ii«Êresolving such always new design and engineering
V >i}iÃÊ>ÃÊ>ÊÛ>}Õ>À`ÊvÊ 6Ê`ÕÃÌÀÞÊÃ«>Vi°Ê

Comments of a key development
project member
3HIGETAKA
7AKABAYASHI
Automobile andTransportation Systems
Business Unit

We had in-depth discussions with Mitsubishi Motors to deﬁne whatis needed as a car component and motor drive supplier, and after
reaching a deeper understanding of the speciﬁcation requirements,
it was essential for us to make better product proposals. There aresome blind spots in making the motor drive units for EV, althoughPart of our inverter production line

we also produce motor drive units for general industry such as forelevators and injection molding machines. The blind spots turned out
to be very important design and engineering matters for the vehicle
components. We came to such conclusions on many occasions.

Industrial Systems Business Field Net Sales

Going forward, by drawing on our acquired knowledge
and experience over the past years, we would like to expand theapplicable EV car models. We are also focusing on fostering young anddevelopment in a manner “one step ahead of the competition”.

Contributed to Business Performance Gainsin the Industrial Systems Business Field
In ﬁscal 2013, net sales in the Industrial Systems
Business ﬁeld strongly rose by 32.1%. This reﬂects
recovery in private capital investment, especially in
the ICT industry and manufacturing segments likethe automobile and semiconductor industries. Net
operating income likewise improved. There was anespecially large contribution from steady productionvÊÌÀÊ`ÀÛiÊÕÌÃÊvÀÊ 6ÃÊ>`Ê* 6Ã°Ê7iÊ>ÊvÀÊ
further growth in ﬁscal 2014.

30%

51,140
million yen

Ou tl i ne o f Mei d en G ro up

talented engineers and together, we would like to promote productgrowth overprevious year

38,933
million yen

FY2012FY2013The Outlander PHEV (Mitsubishi Motors), which uses a Meiden motor and inverter

21

MEIDENSHA REPORT 2014

MEIDENSHA REPORT 201422

Special Feature

3
A Test-bedding Project in Singapore

Challenges of Meiden Group

Meiden has a long history in the water processing business. We started shipping electrical facilities to modern sewage treatment
plants in Japan in 1922. Since then, we have continued to supply electrical facilities to water treatment plants throughout Japan.
Currently, we are developing new business in the water treatment ﬁeld as we look to expand business with overseas and private
sector markets. To this end, we developed a ceramic ﬂat membrane to ﬁlter wastewater. Mass production began in 2012. Ceramic ﬂatmembranes use ceramic technology we originally developed for other products. We have handled such ceramic products as electricalchemical and thermal tolerance. We expect these membranes to have applications in a wide range of ﬁelds such as public sewage
treatment systems, reuse of wastewater from factories, and pretreatment of seawater for desalination.

Air forcleaning
membrane

A F o u n da t i o n f o r Bu i l di n g Va l u e

facility insulators and surge arrestor components. Thus, these ceramic membranes are highly durable and easy to maintain, with highFilteredwater

Spe c i a l Fe a tur e

Protecting Water Environmentswith Our Advanced Water
Processing Technologies

Increasing its water self-sufﬁciency is a key priority
in Singapore. Over many years, Singapore has
adopted and accumulated advanced water treatment
technologies from various countries. The governmentof Singapore adopted a national plan to advance thewater processing business, aiming to become a waterÕLÊvÊÌ iÊÜÀ`ÊqÊ>ÃÊ>ÊViÌiÀÊvÊÌ iÊÜ>ÌiÀÊ«ÀViÃÃ}Ê
business as well as related R & D programs.
PUB, Singapore’s national water agency,
oversees all aspects of the water supply business in
Singapore. Together, we built an MBR* demonstration
plant using ceramic ﬂat membranes. The plant ofﬁciallystarted operation on March 7, 2014. To date, we haveconducted many demonstration projects between
Meiden and PUB in the household wastewater ﬁeld.
However, this is a new demonstration project that will
demonstrate the great effectiveness of ceramic ﬂatmembranes for the reuse of industrial wastewater.
The newly built combined-type industrial wastewater
reclamation facility at the Jurong Water Reclamation*>ÌÊ V>Ê ÌÀi>ÌÊ {]xxäÊ ÐÊ vÊ Ü>ÃÌiÜ>ÌiÀÊ iÛiÀÞÊ `>Þ°Ê
We hope to use the positive test-bedding results in
Singapore as a springboard for business development
and we aim to expand sales of ceramic ﬂat membranes
in the wastewater treatment and reclamation market,
where we expect demand to grow further in future.

Filtering water with ceramic flat membranes

Ceramic ﬂat membrane units installed at a water treatmentplantIÊ ,\ÊiLÀ>iÊ Ài>VÌÀ

An engineer’s comments-ASATAKASamizoEngineering Department,
Water Processing &Environmental Engineering
Business Unit

Jurong Water Reclamation Plant

On the engineering side, the biggest challenge was clogging. We
managed to overcome this problem by conducting extensive testing
and research on cleaning methods and chemical density. By 2015,
we expect to ﬁnish building a ceramic ﬂat membrane unit assemblyplant and will establish a production and after-sales service
Ou tl i ne o f Mei d en G ro up

organization as well as a related R & D center in Singapore. After
gaining further track records in Singapore, we would like to promote“Meiden Ceramic Flatsheet Membranes” around the world.

Our President Hamasaki at the Opening Ceremony for theJurong Demonstration MBR Plant

At Shale Gas and Oil Sand Drilling Fields
We started a demonstration project in North America using ceramic ﬂat membranes to process oil
contaminated water, a byproduct of extracting oil from oil sands. Going forward, we will work to develop
applications in shale gas and oil extraction ﬁelds.
A ﬁltering system with ceramic ﬂat membranes

23

MEIDENSHA REPORT 2014

Water that has been ﬁltered

MEIDENSHA REPORT 201424

Special Feature

4
Grow Overseas and Foster Global Talent

Challenges of Meiden Group

Meiden Group is conducting a variety of programs to grow our overseas business (a key part of our medium-term management plan)and to achieve our target of “overseas sales contribution to consolidated sales of 30%.” As part of this, we assigned executive ofﬁcers inShanghai and Singapore to oversee the regional operations in the China and ASEAN regions and beyond. We will strengthen our productdevelopment for overseas markets and production and sales hubs in order to realize “Local Production for Local Consumption.” We are also
strengthening the QC and servicing network in the ASEAN region. For the Meiden Group to grow oversea it is essential to foster global talent.

global professionals who can work across both national and organizational boundaries (“Global Talent”).

Up

1.9

pointsover the previous
fiscal year

19.2%

FY2012FY2013

Local and Japanese staff at our overseas affiliates

993

1,153

Southeast
Asia

China
Others
FY2011

Training local engineers

1,085

A F o u n da t i o n f o r Bu i l di n g Va l u e

In ﬁscal 2013, we set up an organization dedicated to global personnel management. We are working on programs to foster

21.1%
Spe c i a l Fe a tur e

Cultivate Global Talent that
can Work Across National
Boundaries

In ﬁscal 2013, the contribution of overseas sales toconsolidated sales was 21.1%. Overseas sales rose
because of T & D products for ASEAN nations and the
Middle East, traction substations and other facility sales
for overseas railways, and T & D products for plants ofJapanese subsidiaries that had expanded overseas.
In order to foster global professionals who can
support the Meiden Group in growing overseas, weÃÌÀ}ÞÊ«ÀÌiÊÛ>ÀÕÃÊ«À}À>Ã\Ê>ÊÌÀ>V«>ÞÊtransfer program for our young employees working
at our overseas subsidiary ﬁrms; technical training
courses for Overseas Meiden Group personnel at ouroverseas training facilities; and the appointment oflocally recruited people to top management positions.
In ﬁscal 2013, we established a dedicatedorganization for global professional management inour personnel department. We reinforced the training
programs for intra-company transfers and locallyrecruited personnel, and we provide programs to
support the lives of intra-company transfers.
Given the economic growth of emerging
nations in Asia, etc., we expect the demand for social
infrastructure such as for electric power companies,
water supply and sewage treatment facilities, andrailroads to continue growing over the medium tolong term. Meiden Group will increase its competitiveedge for overseas markets in terms of products,
organizational power, and human resources.

Overseas sales contribution rate

FY2012FY2013

Management training for local staff

Ou tl i ne o f Mei d en G ro up

TOPICS
Expanding the transformer business inIndia and to its west
Meiden signed an equity investment agreement on March
31, 2014 with Prime Electric Limited (PEL), a supplierof power transformers in India. Through the synergy
developed between our long-standing technology and
QC expertise and PEL’s advanced production facilities,
we expect to expand the T & D business in overseas
markets, including India and emerging nations.

Launching ceremony for Prime Meiden Ltd.

Training local engineers

25

MEIDENSHA REPORT 2014

MEIDENSHA REPORT 201426

! &OUNDATION FOR "UILDING 6ALUE

Corporate GovernanceWe strive to conduct corporate management in a fair, highly transparent, fast and efﬁcient mannerand to improve the governance structure to secure the fairness of business practices.

Basic Approach
In order to realize the Group’s philosophy, we view it isessential to secure self-sustainability and self-governanceand formulated the “Basic Policy to Improve theGovernance Structure to Secure the Fairness of Business
Practices” in May 2006, and thus are promoting stronger
corporate governance.

1. System to ensure the directors’ performance of theirduties complies with applicable laws and regulations
and the terms of the provisions in the Articles ofIncorporation

2. System to manage and store information relating to
the directors’ performance of their duties

3. Internal rules and risk management system against
risk-causing losses

4. System to secure directors’ efﬁcient execution of theirduties

5. System to ensure employees’ performance of theirduties complies with applicable laws and regulations
and the terms of the provisions of the Articles ofIncorporation

6. System to ensure the Group conducts its business ina fair manner

7. Matters relating to employees who assist theperformance of duties by corporate auditors

8. Matters relating to the separation of corporate auditors
assisting employees from the supervision of thedirectors

9. System of reporting to the corporate auditors bydirectors and employees and a system of reporting to
the corporate auditors by others

10. Other systems to ensure effective enforcement ofauditing by the corporate auditor

In June 2003, the Company adopted an executive ofﬁcer
system. At the same time, we sought to reinforce thefunctions of the Board of Directors. For a part of these
efforts, we separated the “decision-making authority andsupervisory functions” and the “business performance
functions” from the Board of Directors. The former functions
were assigned to the Company’s directors, and the latterto the representative directors and executive ofﬁcers who
were delegated duties by the representative directors. As
a result, the Board of Directors is responsible for making
decisions from the standpoint of the entire Group, and foroverseeing the overall management of the Group.
Two of the ten members of the Board of Directors
are outside directors.* This structure is designed toreinforce corporate governance by enhancing the Board’s

27

MEIDENSHA REPORT 2014

Corporate Governance Structure: Supervision andManagement and Internal Control System
General Meeting of Shareholders
Board of Directors(includes two outside directors)
Representative
Directors
Executive
Officers

Board of Corporate Auditors(includes two outside auditors)

As of June 27, 2014

Board of Directors

CHAIRMANPRESIDENT

Junzo Inamura

9UJI (AMASAKI

8 1/6 Ê6
PRESIDENT

8 1/6 Ê6
PRESIDENTÊ+OZO -ASAKIÊ!KIRA 7ACHI

Director and Senior Managing Executive Ofﬁcer
Gentaro Kawashima

Outside Director(IROYUKI 4AKENAKA

Director and Senior Managing Executive Ofﬁcer
4AKESHI -IIDA

Outside Director"OTARO (IROSAKI

8 1/6 Ê6
PRESIDENTÊ

Koichi Yamamoto
Outline of Meiden Group

Policy Actions Update *As of June 27, 2014

Board of Directors / Corporate Auditors

A Foundation for Building Value — Corporate Governance

Basic Policy to Improve the Governance
Structure to Secure the Fairness of Business
Practices, which covers:

supervisory function concerning the execution of duties.
Executive ofﬁcers appointed by the Board of Directors
comply with the Group management policies decided by
the Board of Directors. They are responsible for executing
their delegated and designated duties and perform theirduties quickly while receiving the supervision of the related
representative directors. The Company has adopted
a corporate auditor system. The Board of Corporate
Auditors consists of four members, two of whom areoutside corporate auditors. The Board of Corporate
Auditors communicates with directors, the internal auditing
department, and other related departments, while adhering
to auditing policies, the division of duties, and auditing
rules for corporate auditors stipulated by the Board of
Corporate Auditors. The corporate auditors attend Boardof Directors Meetings and other important meetings, andaudit the duties of directors by means of monitoring thebusiness operations and ﬁnancial conditions of the Group.
We have an Internal Auditors Ofﬁce to assist the Board of
Corporate Auditors, which works under the direct controlof the Board.
In addition, we have an Internal Auditing Division,
which directly reports to the president, fulﬁlling the roleof diagnosing the Group’s corporate ﬁtness level in a
regular manner. This Internal Auditing Division conducts
internal audits to check the effectiveness and efﬁciencyof business operations, the reliability of ﬁnancial reporting,the status of compliance with laws and regulations, andthe maintenance of assets covering the Company and allGroup companies at home and abroad. It also reports theresults of internal audits to top management, and offers
advice to the related employees on their performance ofbusiness duties.
With respect to requirements regarding the guidanceof the internal control system for ﬁnancial reporting inaccordance with the Financial Instruments and Exchange
Law in Japan, the Company adopted basic policies that
conform to the Implementation Guidance for Management
Assessment and Audit of Internal Controls over Financial
Reporting (ICFR) by Japan’s Financial Services Agency.
The Internal Auditing Division independently audits theeffectiveness of internal control systems in terms of
implementation status and improvements at the Company
as well as at the overall Group level.

Special Feature

Corporate Governance System

Director and Senior Managing Executive Ofﬁcer-AMORU 3UGII

Corporate Auditors

Accounting Auditor

Internal
Auditing Unit

Compliance Committee
Compliance Manager

Senior Corporate Auditor+AZUYUKI 4ANAKA

Corporate Auditor-ASAKIYO )NOUE

Senior Corporate Auditor

4OSHIHIKO !NDO

Corporate Auditor

9OSHIAKI 3HIN

Each Business Unit
Compliance Hotline

MEIDENSHA REPORT 201428

! &OUNDATION FOR "UILDING 6ALUE! &OUNDATION FOR "UILDING 6ALUE

Compliance

Risk Management

Meiden Group considers compliance initiatives to be a key part of our practice of CSR. We work to

The entire Meiden Group is stepping up its risk management program, working to prevent various

comply with the law, society’s expectations, and social norms and ethics in general.

risks and minimize impacts if such events occur.

Compliance Policy and System

A Foundation for Building Value — Compliance / Risk Management

Representative(President)

Board of Managing Directors

Instructions

Reporting (accountability)

RMC Office, General Affairs, Legal Affairs

Company-Wide RMCWorks with existing committees to address new problems and issues affecting
more than one committee

Consider response to individual major risks

3TRENGTHEN )NFORMATION 3ECURITY-ANAGEMENT
Meiden Group understands that ensuring the security of
the information assets we handle is a most critical issue.
Thus we protect these assets from disasters, accidents,
criminals, errors, and other threats. We also establish andmaintain information security controls to prevent lapses in
information security caused by leaks, tampering, or theft.
In ﬁscal 2013, we gave an online course in information
security to the entire Meiden Group and took measures tosecure email to further strengthen information security.

Outline of Meiden Group

Overseas affiliate disaster response offices

Area disaster response offices

Company-Wide Disaster Response OfficeCompliance managers

Relations between Company-Wide RMC and existing organizations

New Influenza Strains Emergency Response OfficeCompliance managers

Company Wide RMC
Operation of the Company-WideCompany and area safety and health committees

Compliance Office

4. Decide on company policies on crises that do happen.

Product and Technology Deliberation Committee

Compliance Office

In ﬁscal 2013 a disaster drill mainly took place at the Meiden
Nagoya Works, under the scenario of a disaster equivalent
to a Nankai Trough earthquake in scale. Participants
practiced checking for safety in disaster-hit areas, passing
information between sites, and preparing for aid workers
to mobilize.
Those involved in the highly effective practice kept
communication ﬂowing between Meiden Nagoya Worksand Head Ofﬁce and other production sites and set up a
response system. Aid workers loaded relief supplies whileothers practiced exiting the workplace to return home.
In ﬁscal 2014, we aim to further improve the Head
Ofﬁce’s ability to take disaster countermeasures. We havescheduled a drill based on an anticipated earthquake
centered directly under the Tokyo area.

3. Encourage measures to prevent crises before they happen.

Quality Assurance Council

Compliance Committee

2. Periodically check and evaluate whether relevantorganizations are functioning effectively in terms of risk
management, and encourage improvements.

Product Liability Committee

Compliance Committee

1. Establish basic policies on major and cross-organizationalrisks

Meiden Group Environmental Committee

Meiden Group Compliance System

Compliance Committees hold Compliance Information
Exchange Meetings at major business premises inJapan every year. The purpose is to maintain and raisecompliance awareness and receive input from people ineach workplace. The Compliance Information Exchange
Meetings also serve as education for compliance managers
and selected employees, who also have the opportunity to
exchange views with the Compliance Committees. These
events were held at 22 locations in ﬁscal 2013, inviting a
total of about 1,170, including compliance managers andselected Group employees. The committees reported on
their companies’ compliance activities, including individual
whistleblower cases and how the Company responded.
Training was also given on workplace harassment and the
Act against Delay in Payment of Subcontract Proceeds, Etc.
to Subcontractors. Legal affairs staff gave further training to
inform participants about especially unacceptable behavior,using speciﬁc examples. For their part, the participants
talked about their workplace conditions, expressing theiropinions and hopes to the committees and asking plentyof questions. We aim to reﬂect these participants’ input informulating this ﬁscal year’s compliance program policies
for even better compliance activities.

Meiden Group has a system in place to oversee risk
management over potential problems in the Group. Our
Company-Wide Risk Management Committee (RMC)
functions as described below to respond to major, crossorganizational crises. The Company-Wide RMC also
partners with working group committees (WGCs) to study
anticipated risks and their level of seriousness and toprioritize responses to them.

Information Security Committee

Meiden Compliance System

Compliance Education and Information%XCHANGE -EETINGS

Implementation of Total Disaster Reduction
Drills! 3TRONGER 2ISK -ANAGEMENT
SystemSafety and Trade Control Committee

Meiden Group Compliance System

Meiden has a whistleblower system on compliance. This
is to prevent illegal actions or misconduct and to solve
problems as early as possible if such illegal action or
misconduct occurs.
ÀÊÌ ÃÊÜ ÃÌiLÜiÀÊÃÞÃÌi]ÊÌ iÀiÊ>ÀiÊÌÜÊÀÕÌiÃ\Êan internal hotline system for compliance violations (Internal
Hotline System) and a whistleblower hotline for public
interests (Public Whistleblower System).
For the Internal Hotline System, any employee inJapan can enter the ‘hot-line site on compliance violations’on an anonymous basis. For the Public Whistleblower
System, the contact points by phone are available atinternal telephones and the external third-party phone.
The third-party phone is located at the law ﬁrm to protect
the whistleblower and to secure fairness in response tocompliance violation information.
The Compliance Committee studies information thatis brought to the above points of contact, and, if necessary,consults with a lawyer for resolution. Those who reportproblems are protected under the Whistleblower Protection
Act.

Compliance Committee

Meiden Group Code of Conduct (COC) deﬁnes that weshall strive to ensure compliance with applicable laws andregulations of our business operations-related matters,other applicable laws and regulations at home and abroad,social and ethical norms, and its underlining spirit, and weshall conduct our businesses with strong corporate ethics
and good corporate social sense.
Given this policy, Meiden and its Group companies
established a compliance committee at each level asper Meiden Group Compliance Promotion Rules. These
committees actively communicate with each other andpromote CSR programs.
The purpose of our Compliance Committee is todecide on policies for compliance programs, arrange
compliance awareness campaigns, respond to internal
information on COC violations, and compile the common
committee’s opinions on various events that have occurred
and take action to resolve the issues. The activities of theCommittee are reported to the representative director(Compliance) and lawyer and we strongly promote ourcompliance programs and secure the transparency of
those programs.
Each workplace has a compliance manager, whomakes sure that the Committee’s policies are wellunderstood and the business activities comply withthe applicable laws, regulations and social norms. The
compliance manager also offers consultation to any
employee who seeks advice on some problem and, whennecessary, reports to the head of the workplace to offer
advice to correct the problem. The compliance manager
reports periodically on these activities to the Committee.
Compliance activities are also in place at overseas
Meiden Group companies. As per the medium-term
management plans, we are planning to select leader
companies in the designated regions and will promote
improvement of internal rules and the establishment ofCompliance Committees for the designated regions.

Whistleblower System on Compliance

Special FeatureCompliance System at MeidenGroup

Priority Initiatives for Fiscal 2013
In ﬁscal 2013 we established Document Control Rules
to raise awareness of information control and prevent
information leaks and other incidents.
We also established Rules for Writing and Keeping
Important Contract Documents. The aim here is to institutea system to avoid or reduce the risk of information loss andminimize any loss that occurs under contracts that havethe potential to seriously impact the Company.
In ﬁscal 2014, we will step up disaster prevention asa priority initiative.

Information security control system
President
Information Security Committee

Persons responsible in departments

Information Security Office

Person responsible for enacting security measures

Information exchange meeting

29

MEIDENSHA REPORT 2014

MEIDENSHA REPORT 201430

! &OUNDATION FOR "UILDING 6ALUE

Research and Development /Capital Investments / Intellectual Property
We are actively engaging in research and development programs, capital investment and intellectual property-related activities toassist the progress of our “Power of Collaborative Manufacturing Excellence” in preparation for a new leap forward of Meiden Group.

Millions of yen

12,000

Image of Smart BEMS energy supply and demand control
systemAir conditioning

Lighting

9,090

8,424

Cogeneration
systemSmart BEMS

9,680

10,000Under Meiden Group Corporate Code of Conduct, we
strive to comply with the laws, regulations and social
norms. Regarding IP rights, we respect the IP rights ofother ﬁrms and at the same time, we work on programs toprotect and actively use the Group’s IP rights.

8,000
Power
storagesystem

6,000
4,000

"ASIC )NTELLECTUAL 0ROPERTY 2IGHTS 0OLICY

2,000
0
EV charging

Energydemand

2011

2012

2013

FY

EnergysupplyPhotovoltaic
generation
system

In the industrial ﬁelds, we have improved theperformance and reduced the size of motor drive units
for electric vehicles and plug-in hybrids (*see page 21 forrelated details). We developed a PM motor that uses only
ferrite magnets, and we will work to expand its applicationsin the future as a new motor product that can avoid the
supply risk related with rare earths.
In the dynamometer system business ﬁeld, wedeveloped a “World Strategic Model - Drivetrain Test
System.” This system offers a low-inertia dynamometerand vehicle simulation functions as an evaluation facility torealize improved automotive fuel consumption and higher
energy efﬁciency.

World Strategic Model –Drivetrain Test System

Capital Investments
We conducted focused investments in production facilities
to enhance the competitiveness of our products. In the
Numazu area of Japan, we conducted the rebuilding of ourfactory to increase our production capacity for photovoltaic
PCS and power conversion products for energy storage.
Additionally, we promoted a program for upgrading ourfactory’s CAD system. In Kofu, we increased the production
line capacity for overall motor products. At our overseas
production hubs in China and Singapore, we constructed
a new factory for the production of GIS arresters at Meiden< i}â ÕÊ iVÌÀVÊ °]ÊÌ`°]ÊÜ V Ê>Õv>VÌÕÀiÃÊ>`ÊÃiÃÊ
surge arresters in China. At Meiden Singapore Pte. Ltd., we
took the initial step of preparation for an assembly factory for
ceramic ﬂatsheet membrane units for water processing.
Further, in order to support our“Grow Overseas” policy, we
conducted investment in ourGroup’s enterprise resources
planning (ERP) systems,
such as order receiving,purchasing,procurement,
New factory for manufacture
and accounting systems.
of GIS arresters (Meiden
Zhengzhou Electric Co., Ltd.)

Trends in value of capital investments
Millions of yen

12,00010,000
8,000

8,882

9,249

2012

2013

/ iÊi`ÕÌiÀÊ>>}iiÌÊ*>Ê*"7 ,ÊxÊ* >ÃiÊÊÃÌÃ\Êº`Û>ViÊ"ÕÀÊ¼*ÜiÀÊvÊ >LÀ>ÌÛiÊ>Õv>VÌÕÀ}Ê
Excellence’ for Meiden Group’s new solid growth” as abasic policy. To support this policy in terms of IP rights,
Intellectual Property Division conducts programs to reducethe infringement risks of IP rights belonging to other ﬁrms
and supports R&D activities and conducts programs toprotect and use the IP rights from our R&D results. In sodoing, we aim to contribute to the growth of the Meiden
Group’s business.

/RGANIZATIONOur Intellectual Property Division engages in application,
registry and maintenance of IP rights for the entire Meiden
Group. We also assign Patent Managers to each of ourresearch and engineering-related business units (BUs).
Each Patent Manager co-operates with the Division topromote IP rights strategy to ﬁt each BU’s product portfolio
and its business.
In ﬁscal 2014, we reorganized the Division coming
under our Research & Development Group. Going forward,
we will further promote our IP rights strategy and harmonize
with our R&D strategy.

)NITIATIVES IN SUPPORT OF -EIDEN 'ROUP 'OING
GlobalMeiden Group lists “Strengthen Meiden Group overseas
ÃÌÀ>Ìi}Þ»Ê >ÃÊ iÊ vÊ Ì iÊ iÞÊ «VÞÊ Ì«VÃÊ Ê *"7 ,Ê xÊ
Phase III. The Intellectual Property Division is promoting IP
rights application, registration and active use in overseas
countries. As a result, our patent applications to overseas
patent ofﬁces show an increasing trend every year. In order
to avoid IP rights disputes with other ﬁrms in overseas
markets, we are actively using patent infringement
preliminary search services.

Outline of Meiden GroupIn the engineering service ﬁeld, we developed a new
artiﬁcial earth fault test method that features compact test
unit size and light weight and increases testing safety. Thisdevelopment was awarded an Ohm Technology Award
in Japan. By utilizing this new test method as one of ourunique technical features, we would like to develop ourmaintenance and inspection service business.

0ROGRAMS FOR )NTELLECTUAL 0ROPERTY)0 2IGHTS 0ROTECTION AND 5SE

A Foundation for Building Value — Research and Development / Capital Investments / Intellectual Property

With basic technological development looking towards the
future as its foundation, in ﬁscal 2013 Meiden Group strove
to increase the competitiveness of its products, improve
product line-ups and develop new system products bycombining such products. At the same time, we worked
hard to realize the performance improvement of products
by enhancing the common core technologies that support
our products. These technologies include analysis
technologies (structures, thermal ﬂuids, electromagnetic
ﬁelds, etc.), materials technologies (such as insulating
materials and denitration catalysts, etc.) and analytic
technologies necessary for reliability and environmental
performance improvement.
In the power conversion ﬁeld, we commercialized
a 100kW power conversion subsystem (PCS) for solar
power. The new PCS cubicle offers the best conversion
efﬁciency rate in the industry as a transformer-inside model.
This PCS realized the use of the lower limit of PCS voltageÕ`iÀÊÌ iÊ>«>iÃiÊ«ÜiÀÊÃÌ>`>À`Ã\Ê`ÜÊÌÊÇxäÊ6°Ê/ ÃÊ
helps to reduce transmission loss and lower construction
costs (*see page 19 for related details).
In the power transmission and distribution ﬁeld, we`iÛi«i`Ê >Ê iÛÀiÌ>ÞÊ vÀi`ÞÊ ÇÓ6Ê iVÌ>Ê
vacuum circuit breaker that uses dry air insulation rather
than SF6 gas, the conventionally used greenhouse gas.
In the water and environment ﬁeld, we completed
construction and commenced operation of a ceramic
membrane bioreactor (MBR)
plant coupled with an upﬂow anaerobic sludge blanket(UASB) to treat and recycle
industrial wastewater. Thisdemo plant is sited at Jurong
Water Reclamation Plant in
Singapore.
In North America, we
72kV eco-tank vacuum circuitcommenced ﬁeld-testing of
breaker (VCB)
the MBR system using ourceramic ﬂatsheet membranes
to treat oil-contaminated waterproduced by the extraction of oil from oil sands. In future,
we will work to realize the application of the ceramic MBR
system at shale gas and oil extraction ﬁelds (*see page 23
for related details).
In the technology development for next-generation
Energy Management Systems (EMS), we will continue
the demonstrative research program as a part of the
Yokohama Smart City Project (YSCP) until ﬁscal 2014. We
will utilize the technologies developed under the YSCP for
our integrated EMS technical development.

Trends in R&D expenses

Special Feature

Research and Development

6,823

6,000
4,000
2,000
A practical example of conducting “New Earth Fault
Test Method”

31

MEIDENSHA REPORT 2014

0

2011

FY

MEIDENSHA REPORT 201432

! &OUNDATION FOR "UILDING 6ALUE

Quality and Product Safety
Meiden Group attempts to deﬁne the customer’s requirements and our challenges and we aim to make Meiden Group trusted andrelied upon by our customers through the offering of high-quality products and services. We practice the following Basic Policy.

/FFERING CUSTOMERS PEACE OF MIND AND SATISFACTIONÃÃ\Êº/Ê«À`ÕViÊÌÀÕÃÌi`Ê«À`ÕVÌÃÊ>`ÊLiÃÌÊ«À`ÕVÌÊiÝ«iÀiViÊvÀÊÌ iÊVÕÃÌiÀÃ»Ê7 iÊii«ÊºÌ iÊ«>ÃÃÊvÀÊ>Õv>VÌÕÀ}Ê
excellence” and by producing the high quality products and services, we aim to assist our customers in solving their issues and to
produce the best product experience. We need to solidly implement the key policy measures to get the tangible results.

The courses cover such topics as “Role of QC,” “How to*ÀVii`ÊÜÌ Ê>âi]»Êº+ ÊÇÊ/Ã]»ÊºxÊ7 ÞÃÊvÊ>ÞÃÃ]»Ê
ºÕ>Ê ÀÀÀÊ *ÀiÛiÌÊ qÊ *>Ê 9i]»Ê º*À>VÌÛiÊPrevention of Defects and Prevention of Reoccurrence,”
etc. The courses include Group-based actual case study
training. We provide the QC engineering education courses
to people at Meiden Group ﬁrms at home and abroad.

Basic Policy❶ To enhance the best product and service experiences at the customers, we need to act
as a “problem-solving partner” of the customers and thus we all need to get the actual
feedbacks from our customers and shall fast take up the needed actions reﬂecting thedemands and requirements of the customers.

)NITIATIVES FOR )MPROVING 1UALITY

In order to provide the products and services for thebest product experiences of our customers, Meiden
Group listens, collects and analyzes the actual feedback/comments from our customers (information from ourcustomers, requirement information, unsatisfactory points)
as well as the market trends, etc. as “Customer Needs,”
and we link these inputs with our other programs/activities
such as solutions proposals, new product developments,
services, and various kaizen programs.
Each of the BUs having contact with customers suchas R&D, sales and marketing, engineering, production, andproject site construction will make an operational review at
each BU level, deﬁne the evaluation items and summarize
the plan for the next half-ﬁscal year. Each BU gives selfevaluation on operational results and by applying the PDCA
(Plan-Do-Check-Action) Cycle and aiming to improve theoperational performance level.
Flow of initiatives for finding customer needs

Draft targets
and policies

We want our workers to be mindful of change points, whenerrors are likely to happen, and to be aware of risk and takesteps against it in advance. We work to build mechanismsthat examine, verify, and control risks in three error-prone
situations that we call the 3Fs (ﬁrst time, far from norm, far
in frequency).

Follow-up on quality improvement measures by
EXECUTIVE OFlCER 1UALITY -ANAGEMENT
The executive ofﬁcer (Quality Management) visits the related
BU sites to evaluate the state of quality improvement (kaizen)
programs and verify the sound level of preventive measures(for any problems that have occurred) by inspecting theactual items (genbutsu), and ensures that each BU practices
the quality control (QC) kaizen programs in a solid manner.
Moreover, through direct contact between the executiveofﬁcer and the people at the related workplaces during suchinspections, the aim is to increase the QC awareness level.

Determining
needs

Individual
responseand daily
initiatives

ConcreteactionPrompt response to individual requests

Follow-up by executive ofﬁcer
Analysis

Evaluate
Evaluate targets
and link them tonext stage

Responsefrom total
information:
analysis,
investigationof problem)MPROVING 1# 3KILLSExtraction ofproblem

Evaluation

Organization
into themes
From the information collected, findcommon problems and solve them

33

MEIDENSHA REPORT 2014

0ROGRAMS TO 2EALIZE %CO &RIENDLY 3TRONG#OMPACT AND ,ONG ,ASTING 0RODUCTS

Scene from a training session

Environmentally Conscious Product$EVELOPMENT BY )MPROVING 0RODUCT
1UALITY ,IFE SPAN AND %NERGY %FlCIENCYFor Enhanced Reliability
The
Materials
andEnvironmental Performance
Analysis Center evaluates
product reliability, prevents
defects, and provides
diagnosis of deteriorated
product life. These Center
activities are based on the/ ÀiiÊ *>ÀÃÊ vÊ ÌÃÊ «VÞ\Ê Using a 3D X-ray CT scanner to checkfor internal defects“Improve product quality,”“Produce new products”
and “Think Eco.”

Meiden Group focuses R&D programs on strength andtemperature analysis that supports the development of
products featuring eco-friendly, compact, highly efﬁcient,and long-lasting design. For instance, regarding theanti-seismic design of switchgear frames and electricalequipment inside switchgear panels, from the earliest
stage of design, we perform aseismic analysis simulation.
After ﬁnishing the design, we do a detailed evaluation ona digital prototype model. In so doing, we realize a highly
reliable product design. We also do thermal ﬂuid analysis
simulation for rotating machinery and panel products to
produce effective cooling design. This realizes compact
and long-lasting design.

1. Concept
design2. Aseismic
calculation 1(concept model)

3. Detailed design 4. Aseismic
5. Production(3D CAD)
calculation 2
and testing(prototype model)

Flow of switchboard design using analysis simulation

TOPICS
Maintenance Engineering Training Courses for safety
and peace of mind

Individual
response

Evaluation

Analytic Simulation and Advanced Control Center
practices ‘front-loading,’ which is computer-based
validation of design by analysis simulation from the earliest
stage, thereby determining the effective design. Such
practice realizes improvement of product quality, shorter
development time by reducing development rework, andimprovement of product performance and safety.

In order to acquire essential knowledge of QC, we conduct
QC engineering education courses, not only for people
at production-related Bus, but also for people at nonproduction-related BUs. The programs are available in>«>Ê vÀÊ Ì iÊ vÜ}Ê }ÀÕ«ÃÊ vÊ «i«i\Ê iÜÊ ÀiVÀÕÌÃ]Ê
young employees, middle management leaders, etc.

At Meiden Engineering Center located next to Meiden Numazu Works, Numazu
City, Japan, we provide technical skill training and engineering education
courses for training maintenance engineers. Through training using actual
power equipment that is very close to on-the-job training, we are cultivating
maintenance engineers who can contribute to reliable, safe and effective
operation of the customer’s facilities.
Training courses are taught by veteran maintenance engineers with richand varied on-site experience. The curriculum covers nearly all Meiden power
products, including high-voltage substations, industrial PC facilities, power
conversion products, power generation equipment, induction motors, etc.
The courses are designed to obtain the required knowledge through hands-on
experience. Trainees learn about the internal structure of equipment by using
cross-section models. They perform actual operation training by operating
disconnect switches, and circuit breakers, power generation systems andinverters, and by conducting protective relay test, etc. Teaching materials
include the latest systems such as photovoltaic power systems.

Outline of Meiden Group

Plan targets andpolicies basedon departmental
strategy)NITIATIVES FOR ERROR PROOFING PROGRAM AGAINST &
situations (ﬁrst time, far from norm, far in frequency)

0ROMOTE @&RONT ,OADING BY #OMPUTER !NALYSISA Foundation for Building Value — Quality and Product Safety

0ROMOTE 0ROGRAMS TO #OLLECT
Customer Needs❷ To increase the quality level of the products and services (quality, delivery schedule andreliability level) and the job performance quality, we need to deﬁne what is each one’s
challenges and issues and start over the key actions: “Change, Stop (the nonessential
matters) and Start Over (new things)”. By practicing such actions, we shall make theincremental improvements on each step and realize the overall quality improvement.

Special Feature

0RESIDENTS 1UALITY -ANAGEMENT 0OLICY $IRECTIVE FOR &ISCAL Maintenance technology
training

Training technical staff
overseas

MEIDENSHA REPORT 201434

! &OUNDATION FOR "UILDING 6ALUE

Protection of the Environment
Under our Basic Environmental Philosophy, every individual employee of Meiden Group promotes environmental management that
contributes to the protection of the global environment and the realization of an afﬂuent society through our core business.

Environmental Vision
As a medium-term guideline to assist us in advancing environmental management, the Meiden Group has formulated an Environmental Vision that indicates the stance that we should adopt andthe appropriate direction for our environmental activities. We seek to contribute to the realization of a sustainable society by means of the reduction of the environmental impact resulting from ourbusiness activities and the deployment of the businesses, products and technologies that we have developed to date in the ﬁelds of energy and water treatment to support social infrastructure. Our
Environmental Vision identiﬁes the mitigation of climate change, the building of a recycling society, and the conservation of biodiversity as the missions of a 21st century company, and establishes
targets for how we should perform in our business activities and what we should aim for in our products. We work to implement environmental management with a corporate culture that highly
values the environment as the foundation that helps us to achieve these targets.

Meiden Group Environmental Vision

Mitigating Climate Change
Realize a recycling society

What we can dofor Planet EarthConserving biodiversity

A.Mitigating Climate Change

B.Conserving Resources(Building a Recycling Society)

C.Conserving biodiversity

D.Foster a corporate culture thathighly values the environment

Meiden Group Environmental Vision
A Corporate Culture that Highly Values the Environment

Develop to Action Plans

A. Mitigating Climate Change❶ Contribute to the reduction of CO2 emissions through the sale ofenergy-related products and systems (i.e., products for renewableenergy resources, etc.)❷ Promote environmentally conscious product design and reduce CO2
emissions in the product life cycle.
❸ Reduce CO2 emissions in our production activities.

B. Conserving Resources (Building a Recycling Society)Medium-term Management Plan POWER 5

I. Promote business that makes an environmental contribution

C. Conserving biodiversity

A. Mitigating Climate Change

Increase environmental contribution through products

II. Develop environmentally conscious products
A. Mitigating Climate Change
B. Realize a recycling society
C. Conserve biodiversity

1) Promote environmentally conscious design
2) Enhance management of chemical
substances in products
3) Promote green procurement

Reduce environmental impact caused by our business activities
III. Enhance environmental measures
A. Mitigating Climate Change
B. Realize a recycling society
C. Conserve biodiversity

1) Reduce CO2 emissions from business activities
2) Promote the 3Rs in relation to waste from products
3) Promote initiatives against harmful chemical
substances

IV. Promote environmental communication
D. A corporate culture that highly vales the environment

V. Foster environmental awarenessD. A corporate culture that highly vales the environment

Promote two-way communication: inside
the Group and with stakeholders.
Promote environmental awarenesscampaign programs.

Action Plan (Fiscal 2009 – Fiscal 2014)

Environmental Activities

Meiden Group companies

International Business Planning &Management Division

Administrative Office (EMPAD)○Achieved △Not achieved (better than previous year)

Basic measure
I. Promote businesses that contributeto the environment (“Eco-contributing
Businesses” (ECBs))

II. Develop environmentallyconscious products (ECPs)

III. Promote environmentallyconscious business processes

Environmental initiatives

Not achieved (not as good as previous year)

Fiscal 2013 targets

Fiscal 2013 results

Evaluation

Increase the contribution to the environment via
products

Contribute in reducing 300,000 t/year CO2 emission
reduction effects by ECBs

Contributed in reducing 360,000 t/year CO2 emission
reduction effects by ECBs○

1) Promote environmentally conscious design

Build a product eco-system for next-generation
green products

Revision of standards for evaluation on environmental
assessment sheets, conducting of LCA assessments○

2) Enhance management of chemical substances in products

Build a higher-level chemical substance management
systemExtension of chemical substance management
system throughout entire Group, establishment oftechnological rules○

3) Promote green procurement

Achieve green procurement through its green quality supplierapproval program – more than 50 certified suppliers

Achieved green procurement through its green quality
supplier approval program – more than 52 certified
suppliers○

1) Reduce CO2 emissions from business activities*1

Reduce 1% in CO2 emissions per unit of energy(against the level of fiscal 2012)

Reduced 7.2% in CO2 emissions per unit of energy(against the level of fiscal 2012)○

2) Promote initiatives to eliminate hazardous chemical
substances in products (against the level of fiscal 2000)

Reduce 30% in volatile organic compounds (VOC)
released from burning fuels

Reduced 48% in volatile organic compounds (VOC)
released from burning fuels○

3) Promote reduction of waste discharge by 3Rs(Reduce, Reuse and Recycle)

Achieve “zero emissions”*2 at major production hubs
in Japan*3

Achieved “zero emissions” at major production hubs
in Japan○*1 Target: “Reduction of CO2 emissions from business activities”: Activities in line with levels proposed in “the Action Plan Towards a Low-carbon Society” by the Japanese Electrical Industry*2 Meiden Group definition of zero emissions: To achieve efficient use of resource rate in a range that is less than 1.0% of the total volume of waste (including industrial waste, general waste, and saleable waste, but excluding construction sludge, etc.) is not recycled.
*3 Major production hubs: Meiden Numazu Works, Meiden Ohta Works, Meiden Nagoya Works, Kofu Meidensha Electric, Meiden Chemical (Sagami Works), Hokuto Denko (Atsugi Works)❶ Contribute to securing water resources through our water processing
systems business.
❷ Conduct risk management on chemical materials and promote thereduction of very risky hazardous chemical materials, as well as
initiatives to find alternative materials on a basis to reduce or replace
harmful chemicals.

Meiden Group Fiscal 2014 Targets and POWER 5 Medium-term Targets (in Japan)

D. Foster a corporate culture that highly values the environment

II. Develop environmentally conscious
products (ECPs)❶ Promote environmental communication: Actively disclose ourenvironmental activities and results and promote two-way
communication with our stakeholders.
❷ Foster environmental awareness: For mitigating Climate Change,
increase environmental literacy to promote environmentally conscious
R&D and product development and cultivate the Group’s individuals
who actively perform local community and social contribution
programs by acting on their own initiative.

EMS Measuresand Promotion WG

Basic measure
I. Promote businesses that contributeto the environment (“Eco-contributing
Businesses” (ECBs))

III. Promote environmentally conscious
business processes

IV. Promotion of environmental
communication

Environmental initiatives

POWER 5 Targets

Outline of Meiden Group

Contribute to society through products in the areas of water processing and energy❶ Promote the 3Rs (Reduce, Reuse and Recycle) of waste materials inthe various stages of the product life cycle.
❷ Promote zero emissions of waste products from our production
activities.

Basic policy: Promote strategic environmental management
Basic Measures Actions Relating to “Environmental Vision”

GM in charge of EMS(GM of EMPAD)

Meiden Group Fiscal 2013 Environmental Targets / Status of Achievement of Targets (in Japan)

Targets that express our Environmental Vision
Vision(Fiscal 2020)

Deployment of Action Plans

Meiden Group Environmental Committee
Chairman: Executive Officer(Environment)

Plant Construction &Engineering Business Division❼ We endeavor to publicize our environmental initiatives both within the Group and tosociety and promote broader communication with our stakeholders.

All Meiden Environmental
Internal Audit Group

Research andDevelopment Department❹ After establishing our internal guidelines, we endeavor to comply with the related
environmental laws, regulations, rules and other required matters and strive to avoid therelease of contamination from our operations.

❻ We strive to implement initiatives including environmental education and PR activities inorder to increase all of our employees’ understanding of environmental management andmake our environmental programs more proactive.

Executive Officer (Environment)（Executive Duties of EMS）

Branch Offices and Branches❸ We strive to promote environmentally conscious business processes with green
initiatives: promoting energy saving, promoting the 3Rs (reduce, reuse and recycle) andreducing the release of hazardous materials to reduce the environmental impact from ourbusiness activities.

*Note: The Plan-Do-Check-Act Cycle means: Plan: Identifying and analyzing the problem. Do:
Developing and testing a potential solution. Check: Measuring how effective the test solution
was, and analyzing whether it could be improved in any way. Act: Implementing the improved
solution fully.

President (CEO of EMS)A Foundation for Building Value — Protection of the Environment❷ We strive to design and develop green products by conducting environmental impact
evaluation for the product’s life cycle, from initial material procurement to ﬁnal disposal.

❺ After establishing an environmental management system, we strive to maintain andimprove it through the QC tool of the PDCA (Plan-Do-Check-Act) Cycle.*

Meiden Group EMS Promotion Organization

Head Office❶ By promoting the development of new products and innovative technologies andproviding such products to wider global markets, we endeavor to contribute to mitigatingclimate change, building a recycling society, and conserving biodiversity.

Meiden Group promotes an environmental management system(EMS) at each ﬁrm level and at the Group-wide level. In our EMS
organization, the chief executive ofﬁcer is our President and theofﬁcer carrying out the executive duties of EMS is our executiveofﬁcer (environment) who oversees the overall EMS managementof the whole Meiden Group. The general manager (GM) in
charge of EMS is the General Manager of the Environmental
Management Program Administration Division (EMPAD). The
GM maintains and improves EMS of Meiden Group. The GM
organizes the All-Meiden Environmental Internal Audit Groupand the Group inspects and monitors the status of EMS andconditions of compliance with related laws and regulations.
We established Meiden Group Environmental Committee
as our EMS organization’s highest decision-making bodyin relation to environmental activities. It sets environmental
targets and formulates action plans, conducts management
reviews, responds to emergency situations, and reviews
and reports on the activities of environmental measures andworking groups (WGs) and EMS promotion WGs.

Meiden Nagoya Works

The Meiden Group’s Environmental Action Guidelines%NVIRONMENTAL MANAGEMENT INITIATIVES

Meiden Ohta Works7Ì ÊÕÀÊL>ÃVÊiÛÀiÌ>Ê« Ã« Þ\Êº ÌÀLÕÌiÊÌÊ«i«i]ÊÃViÌÞÊ>`ÊÌ iÊ}L>ÊiÛÀiÌ]»ÊÌ iÊi`iÊÀÕ«Ê>ÃÊÌÊ
help build a sustainable society and to realize the growth of the Group and actively implement environmental management to tackle«ÀÌ>ÌÊÃÃÕiÃ\ÊÌ}>Ì}ÊV>ÌiÊV >}i]ÊivwÊViÌÊÕÃiÊvÊÀiÃÕÀViÃÊ­LÕ`}Ê>ÊÀiVÞV}ÊÃViÌÞ®Ê>`ÊVÃiÀÛ}ÊL`ÛiÀÃÌÞ°

0ROMOTING 3TRATEGIC %NVIRONMENTAL -ANAGEMENT

Meiden Numazu Works

The Meiden Group Basic Environmental Philosophy

Special Feature

Basic Environmental Philosophy

Fiscal 2014 Targets

Increase the contribution to the environment via
products

Contribute 400,000 t/year CO2 emission reduction effects by Contribute 400,000 t/year CO2 emission reduction effects
ECBs in fiscal 2014
by ECBs

1) Promote environmentally conscious design

Expansion of scope of subjects for environmentallyconscious design in fiscal 2014

2) Promote green procurement

Achieve green procurement through its green quality supplier Achieve green procurement through its green quality supplierapproval program – more than 50 certified suppliers per year approval program – more than 50 certified suppliers per year

1) Reduce CO2 emissions from business activities

Reduce 1% in CO2 emissions per unit of energy (against
previous fiscal year)

Reduced 1% in CO2 emissions per unit of energy (against thelevel of fiscal 2013)

2) Promote initiatives to eliminate hazardous chemical
substances in products (against the level of fiscal 2000)

Reduce 30% in volatile organic compounds (VOC) released
from burning fuels (Maintained)

Reduce 30% in volatile organic compounds (VOC) released
from burning fuels

3) Promote reduction of waste discharge by 3Rs(Reduce, Reuse and Recycle)

Achieve “zero emissions” at major production hubs in Japan in
Fiscal 2014 (production hubs, engineering service business units(BUs) and construction service business units (BUs)

Achieve “zero emissions” at major production hubs in Japan(production hubs, engineering service business units (BUs)
and construction service business units (BUs))

1) Protection of biodiversity

Organization of activities in cooperation with regional
community (Main four locations*4)

Organization of activities in cooperation with regional
community (Main four locations)

Evaluation of environmentally-conscious design of newly
developed products*4 Main four locations: Meiden Numazu Works, Meiden Ohta Works, Meiden Nagoya Works, and Kofu Meidensha

35

MEIDENSHA REPORT 2014

MEIDENSHA REPORT 201436

Contribute to mitigating Climate Change through the CO2
reductions achieved by ECBs
360,000 t/year
reduction in
CO2 emissions

CO2 emission reduction(10,000t-CO2)

400,000 t/year
reduction in
CO2 emissions

A Meiden Green Product* newly certiﬁed in ﬁscal 2013

2EDUCING #/ 2 Emissions from Our Business
Activities* We have an internal certiﬁcation system to approve excellent ECPs as “Meiden
Green Products”

Drive robot TYPE-i add-on drive robot system
The drive robot TYPE-i is a system allowing the automatic
operation of a complete vehicle on a chassis dynamometer.
The accelerator, clutch, transmission, brake, and ignition key
are all operated by electric actuators exactly as if a humanoperator was in control, enabling automatic driving operation
under freely selected test-driving modes. The unit realizes
the features of compact design, greater energy efﬁciency
and less wiring needs to allow easy add-on to an existing
dynamometer, and we also designed it to be an ECP.
Compared with our conventional model (ﬁscal 2007
model), this product has the following eco-friendly features.
Reduction of product weight40

We have reduced the volume of the control panel (including relay box) byapproximately 40%, the number of parts employed by 20.0%, and weight by
13.3% through efforts to reduce the number of parts and increase compactness.

20

0

Environmental Initiatives related toBusiness Activities

Conservation of energy and resources

2009
result2010
result2011
result2012
result2013
result2014
targetFY* The results ﬁgure for each ﬁscal year shows the aggregated ﬁgure of the annual
CO2 emissions reduction effect from products shipped since ﬁscal 2009

We have reduced the energy consumption of the control panel (including relaybox) by 13.8% through the reduction of the number of parts and the use of
power-saving controllers.
Reduction of amount of wiring
We have been able to reduce the amount of wiring by using almost no analogue
wiring for the signal lines and employing a digital field bus.
Drive robot TYPE-i

Controlpanel

The majority of Meiden Group’s greenhouse gas emissions
occur as a result of the consumption of energy in businessactivities. Since ﬁscal 2013, the Group has employed
the rate of improvement in energy consumption per unitof production as an indicator of reductions in energy
consumption. In ﬁscal 2013, we set a target of a 1%
improvement against the previous ﬁscal year, and realized
an improvement of 7.2%. We were also able to reduce
total energy consumption by 769kl as a result of initiatives
including increasing the efﬁciency of our equipment, making
the transition to LED lighting, and using photovoltaic power.
In addition to equipment upgrades including the
installation of new air conditioners and LED lighting, weare operating and managing our equipment based on thestandards for judgment stipulated by the Energy Saving
Act, and working to rationalize our energy consumption,
including energy consumption in production processes.

50
40
30

33
7

33
7

26

26

2009

2010

39
7

20
10
0

2011

FY

Energy consumption and rate of improvement in energy
consumption per unit of production (Domestic)
Fiscal 2012energy consumption

20,008kℓ

INPUT
Item

Rate of reduction ofenergy consumption

3.8%

Fiscal 2013energy consumption

19,239kℓ

Rate of improvement in energy consumption
per unit of production due to increased
efficiency in production processes

7.2%

OUTPUT
Japan

Overseas

Item

EnergyOverseasJapan

Release to Air
51,091

10,615

MWh

1,836

457

kℓ

Fuel gas

3,607

147

1,000m3

Heat

3,655

–

GJ

Tap water

62

70

1,000m3

Industrial water

129

22

1,000m3

Groundwater

1,301

–

1,000m3

Electricity

Water

kt-CO2

CO2

38

8.5

VOCs

77

–

t

SF6

346

98

kg

SOX

1.3

–

t

NOX

24

–

t

Wastewater

1,488

92

1,000m3

BOD

4,841

–

kg

Release into public
water area

Wastes from ourbusiness activities

Chemical
substances

SF6(excluding sludge from construction)

439

–

t

Products

Amount not recycled

44

206

t

Amount recycled

7,274

1,242

t

85

–

t

48,339

–

t

1,862

–

t-CO2

Transportation
12,1003,344kg
Transportation

MEIDENSHA REPORT 20142013

* Until ﬁscal 2012, average annual ﬁgures published by The Federation ofElectric Power Companies of Japan have been used for the emissions factor(receiving end). The average annual ﬁgure for ﬁscal 2012 published by The
Federation of Electric Power Companies of Japan has been used for theﬁscal 2013 emissions factor.

Greenhouse gases

37

2012

32

Construction sludge

Hachiryu Wind Farm, Akita Prefecture

38

At Meiden Group, we monitor the environmental impacts from our business activities. Our rate of use of major resources andour environmental impacts from our business activities are shown below.

VOCs

Outlander PHEV

40

Outline of Meiden Group

Yamanashi Mega Solar (Kai City), Yamanashi Prefecture

Complete system

CO2 emissions (AE Power Numazu)
CO2 emissions (Meiden Group)（kt・CO2）

Overview of Environmental Impacts by Our Business Activities (Fiscal 2013)

Fuel oil

Robot

Trends in CO2 emissions (Domestic)

A Foundation for Building Value — Protection of the Environment

We identiﬁed the related businesses of three business ﬁelds(solar power, wind power, and electrical components foriiVÌÀVÊÛi ViÃÊ­ 6®®Ê>ÃÊÃÊÜÌ Ê } ÊiÛiÃÊvÊVÌÀLÕÌÊ
and we enlisted the resultant contribution of CO2 emission
effects through these businesses and the related products
as environmental contribution volume and thereby set
the eco-efﬁciency targets (For ﬁscal 2014, reduction of
400,000 t-CO2). In ﬁscal 2013, we steadily expanded ourphotovoltaic generation-related business, enabling us torealize an emissions reduction of 360,000 t-CO2, a ﬁguresigniﬁcantly in advance of our target of 300,000 t-CO2.

Environmentally Conscious
Product (ECP) Development

Special Feature

0ROMOTING "USINESS THAT
Contributes to the Environment
h%CO CONTRIBUTING "USINESSESv %#"S

Product weight
CO2 release bytransportation* Average ﬁgures for the period from 2009 to 2011 published in the International Energy Agency (IEA)’s CO2 Emissions from Fuel Combustion (2012 Edition) were used
for the emission coefﬁcient for power use for each country. For fuel oil and fuel gas, emission coefﬁcients for each country published by the Greenhouse Gas Protocol
Initiative were used.

MEIDENSHA REPORT 201438

! &OUNDATION FOR "UILDING 6ALUE

Human Resources Management
Meiden Group aims to maintain a fair and just employment system and a positive workplace to enableeach employee to realize his or her potential.

Employment Policy
Our basic policy is to evaluate employees in a fair and justmanner and respect their individual abilities and willingness,
irrespective of gender, educational background, age, etc.

From April 2013, the mandatory hiring level of people withdisabilities was increased by the Japanese Labor Law
to 2.0%. We have been hiring such individuals not only
through our designated subsidiary company but also atÌ iÊ «ÀV«>Ê V«>ÞÊ qÊ i`i°Ê Ê >«>]Ê ÜiÊ >i`i`Ê
our re-employment system initially applicable to those who
reach the mandatory retirement age of 60 as of April 2013.
We offer job openings to all applicable and re-employmentseeking people by displaying the job descriptions andentering re-employment contracts.
Rate of employment of people with disabilities (Meiden Group)
2010/6

2011/6

2012/6

2013/6

2014/6

1.95%

2.09%

2.12%

2.13%

2.18%

Legally required employment percentage: 1.8% through March 2013; 2.0%
from April 2013

0ROMOTING $IVERSITY

about working styles

Human Resource Development
Human Resource Development Policy① We will develop human resources capable of contributing
to the management philosophy and to securing thenecessary proﬁt for such objectives.
② We will provide advice and support to each person sothat he or she can ﬁnd their unique potential and canhave career development to maximize their current andfuture job performance.

39

MEIDENSHA REPORT 2014

Awarding training certiﬁcates-AIN 4RAINING 0ROGRAMS❶ New-recruit training to help them get a smooth start as a working member ofsociety and subsequent followup training after one year
❷ Newly promoted-employee training to enable them to have the necessary
knowledge and way of thinking for their new job performance* We are reinforcing the training for younger cluster employees; in particular, young
employees with third and fourth year company experience after joining.
We added the training for such company age groups. For newly promoted assistantmanagers, assistant senior engineers and senior managers, we have training programsfor immediately following their appointment as well as follow-up training. These training
series will help them to acquire practical knowledge.

❸ Subjectively based and participative training program in the form ofcollective training or by correspondence course. This program is for careerdevelopment of each employee to enable him or her to acquire the necessary
knowledge or skills for the career goal set by themselves.
❹ Life-planning and career-design training program to help senior employees
prepare for their retirement or post-company life-plan in Japan. This training
will enable them to acquire the life-planning skills including budgeting.
❺ Job-based training programs to foster professional people in each job
description such as engineers, technicians, sales and marketing people.
❻ Basic engineering course for back-ofﬁce staff to know our products. This is
to strengthen the basic knowledge necessary for a supplier’s employee.

"UILDING A 0OSITIVE 7ORKPLACE WITH
Job Satisfaction
Personnel Treatment System
In April 2011, we amended our HR beneﬁt system inJapan for our managerial level. This is designed to give
incentives for their contributions to the Company and help
their motivation to work. The HR beneﬁt system strikes abalance among “Played Role,” “Contribution Level” and“Corporate Performance Results.” It uses a role-speciﬁc,multi-track (occupational group speciﬁc) qualiﬁcation
system. It was introduced to reward employees based

Major initiatives
MBO Performance Measuring System

Recognizing that the occupational safety and health(OSH) of each employee are fundamental to the Group’s
operations, we work to eliminate occupational accidents
and maintain and improve each employee’s health atÜÀ°Ê/ ÃÊvÜÃÊÕÀÊ >ÃVÊ*VÞ\Êº/ÊÃiVÕÀiÊ>ÊÃ>viÊ>`Ê
positive work environment and help in realizing the worklife balance and better lives of our employees.”

In order to ensure high evaluation transparency, we use the MBO(management by objectives) performance measuring system. This
enables each employee to evaluate their individual performance
results in the light of each BU’s performance objectives under*"7 ,Êx°Ê/ ÃÊÃÊÊiÊÜÌ Êi>V Ê 1½ÃÊ*IÊ>VÌÛÌiÃ°ÊÊÊ* We named our management policy-related activities at Meiden Group“MAP Programs.”
MAP: Meiden Advantage Program

Self-reporting system
The self-reporting system helps employees develop personallyand form career plans.

An ofﬁcer gives a safety talkMeister program
The Meister program gives special beneﬁts to employees who
contribute to Meiden Group through excellent craftsmanship. We
treat them as high-level experts. So far, we have certiﬁed eighti«ÞiiÃÊ>ÃÊiÃÌiÀÃÊLiÌÜiiÊwÊÃV>ÊÓäänÊ>`ÊwÊÃV>ÊÓä£Î°Ê­/ÜÊ
people were so honored in ﬁscal 2013.)
Component system plant awarded for1000 consecutive accident-free days

Job rotation program
We have adopted a job rotation program to develop the abilities ofour young employees.

New Safety and Health System in Fiscal 2014

Occupational Safety and Health
Initiatives
Safety and Health Initiatives Based on President’s
3AFETY AND (EALTH -ANAGEMENT 0OLICY
Each ﬁscal year, Meiden Group draws up a President’s
Safety and Health Management Policy and undertakes
safety and health initiatives in keeping with the policy. We
also draw up English- and Chinese-language versions of
the same policy. In so doing, we apply the related initiatives
to overseas Meiden Group companies.

In order to improve and upgrade the content of OSH
programs, we view it as essential that each workplace works
hard on OSH programs on a daily basis. In this connection,
we newly established a BU called “Operational Health and
Safety (OHS) Management Department” in ﬁscal 2014. The
new organization promotes OSH measures throughout all
Meiden Group companies. Its activities focus on on-site
OSH instructions at the project sites and workplaces.
Regarding the health management of each majorarea in Japan, “Health Management Liaison Meetings,”
consisting of each area’s personnel department and
Healthcare Management Ofﬁce discuss various challenges
and create speciﬁc measures to resolve any problems.

Outline of Meiden Group

Meiden Group aims to realize diversity. As one of the steps,
starting from ﬁscal 2014, we began focused programs toallow female employees to more actively play larger rolesat Meiden Group. Promoting diversity is one of our key
business policies, and assuch, we wish to fostera culture to enable each
employee to realize hisor her potential. At thesame time, we would
like to review our current
HR system for a better
Female employees in a session to talksystem.

We provide various training programs for the personal
development of our employees as members of society, as
Meiden Group employees, and as professionals. In ﬁscal
2013, we conducted training for overseas Meiden Groupmanagers and engineers with the training courses given
in Japanese and English, and we also provided training
courses in Chinese.
We also invited overseas Meiden Group engineers(production-related)toJapan and they joined thetraining programs at our
related mother factories.
We will continue toincrease global humanresources development­ÃiiÊ «>}iÊ ÓxÊ vÀÊ Ài>Ìi`Ê
information).

on their contribution so that those who work harder are
treated accordingly. Moreover, the program for ordinary
employees was revised in April 2012 to do the same.

A Foundation for Building Value — Human Resources Management(IRING OF 0EOPLE WITH $ISABILITIES AND !MENDMENTin Our Re-Employment System! 6ARIETY OF 4RAINING 0ROGRAMS

Special Feature

Promote Fair and Just
Employment Practices and
2ESPECT $IVERSITY IN THE 7ORKPLACE

TOPICS
Stronger OSH Programs at Meiden Zhengzhou ElectricCo., Ltd.
i`iÊ < i}â ÕÊ iVÌÀVÊ °]Ê Ì`°]Ê ÕÀÊ ÃÕLÃ`>ÀÞÊ Ê >]Ê ÃÌ>ÀÌi`Ê «ÀÛ`}Ê
occupational wellness checkups to employees in 2009. Since 2011, it has also
been enhancing OSH programs by measuring the environment performance at its«À`ÕVÌÊÃÌi°Ê"Ê iViLiÀÊ£n]ÊÓä£Î]ÊÌÊ«>ÃÃi`Ê>Ê"-ÊiÛ>Õ>ÌÊ>`ÊÃÌiÊ>Õ`ÌÊLÞÊ< i}â ÕÊ ÌÞ½ÃÊ->viÊ>Õv>VÌÕÀ}Ê-Õ«iÀÛÃÀÞÊ ÕÀi>Õ°While accelerating our drive to grow overseas, Meiden Group will work tostrengthen the OSH programs at each production, engineering service, and sales& marketing hub abroad.

A scene at the OSH evaluation auditing meeting withZhengzhou City’s Safe Manufacturing Supervisory
BureauMEIDENSHA REPORT 201440

! &OUNDATION FOR "UILDING 6ALUE! &OUNDATION FOR "UILDING 6ALUE

Supply Chain Management

Social Contribution Programs

The Meiden Group’s CSR initiatives and Code of Conduct are based on our Corporate Philosophy, and we ask our suppliers

By contributing to the community as based on Meiden Group Social Contribution Policies, we work toto practice CSR in every aspect of their business activities to the same degree as we do in our own.

maintain good communication with the community and other stakeholders.

Our Response to Conﬂict Minerals
Issue

Basic Procurement Policy❶ Compliance with applicable laws and social norms❷ Fair trade based on free competition❸ Consideration for the environment❹ Building healthy partnerships

Ê££n]ÊÀÃ°Ê/>iÊ- }iÕi]ÊÌ iÊÃiV`Ê*ÀiÃ`iÌÊvÊÌ iÊ «>ÞÊ>`ÊÜviÊvÊÕÀÊvÕ`iÀ]ÊÀ°ÊÃÕÊ- }iÕi]Ê
used her own funds to establish Hosui Elementary School in Osaki (Shinagawa City, Tokyo), an area where the Company
had a factory. Following in her footsteps, Meiden Group makes a wide variety of social contributions through our active
involvement with local communities and with society.

Meiden Group policy on disputed minerals Issue
Meiden Group works to prohibit the use of conﬂict minerals
qÊÌ iÊiÀ>ÃÊÌ>Ì>Õ]ÊÌ]Ê}`]Ê>`ÊÌÕ}ÃÌiÊi`ÊÊ
the Democratic Republic of the Congo and surrounding
nations when those minerals are used to help fund armed
forces that repeatedly engage in human trafﬁcking, forced

Meiden Group asks our suppliers to understand and cooperate with our response to conﬂict minerals as part ofensuring socially responsible procurement.

Examples of social contributions (FY2013)
4EACHING #HILDREN THE &UN OF #RAFTING
4HINGS-%4 $ONATED 3UBMERGED #OMPONENTS
to Thai University

Since ﬁscal 2007, the 110th anniversary of our founding, we have

Meiden Electric (Thailand) Ltd. (MET) organizes factory inspection tours andconducted “Meiden Handicraft Sessions” at Hosui Elementary School

engineering lectures for students from universities and vocational schools

and other elementary schools in communities in Japan where we havein Thailand. Ayutthaya Province in Thailand saw major ﬂooding in October

our manufacturing hubs. As of ﬁscal 2013, we have provided hands-on

2011. MET donated some of the ﬂood-damaged and non-operational power

experience in the fun out of making things to more than 6,000 children.

transformers and instrument transformers to Rajamangala University of

A Foundation for Building Value — Supply Chain Management / Social Contribution Programs

labor, child labor, abuse, or other inhumane acts.

0ROMOTE #32 0ROGRAMS THAT
Include the Supply Chain

Special Feature

Meiden Group Basic Procurement Policy

Technology, Pathum Thani Province, Thailand in March 2013 to use as teachingmaterials. Then in August 2013, MET made a second donation to the university.
MET hopes to continue supporting educational institutions in Thailand.

Meiden Group practices CSR to maintain fair tradethat allows for mutual growth. This includes our
procurement of materials. We drafted a “Meiden
Group Supply Chain CSR Deployment Guidebook”
based on CSR initiatives that the Group practices
throughout its business. We present the guidebook
to suppliers along with a request that they andtheir own suppliers practice similar CSR initiatives.
Guidebook content conforms to the Supply Chain
CSR Deployment Guidebook (August 2006 Edition)of the Japan Electronics and Information Technology
Industries Association (JEITA).

Promote Green Procurement
Activities

Communication with Our Suppliers
0RODUCTION 0LAN "RIElNGS FOR /UR 3UPPLIERS
Twice a year (April & October), our major works in Nagoya,Numazu and Ohta City, our production hubs in Japan,
invite major suppliers for a brieﬁng session to outline thebusiness environment and plan at Meiden and each related
BU. During these brieﬁng sessions, we present excellent
supplier awards to those who have greatly assisted
us in materials procurement. This selection comprises
several candidates and the award represents our special
appreciation.
Also, we use Web-EDI to streamline the ordering,delivery period response, and the post-delivery paper
exchange work. In so doing, we promote paperlesstransaction using electronic information.

Meiden is an ofﬁcial sponsor of the JFL soccer team, Azul Claro Numazu,“ThinkPark Forest,” a zone in our head ofﬁce premises in Osaki, Tokyo, has

which is based in Numazu City. Azul Claro Numazu is a community-based

created a green space that seamlessly connects with the green zones of otherclub team that was created through a program to teach soccer to local

nearby companies. Meiden Group and neighboring companies started a naturechildren. Meiden has a long history with Numazu City as our production

observation event in ﬁscal 2012. The event is open to employees of sponsoring

hub and a close relationship with the community there.

companies and is directed by the Nature Conservation Society of Japan.

Azul Claro Numazu values its community, and Meiden endorses theIn ﬁscal 2013, we further expanded the scope of the program and held

team’s goal: “Contribute to a happy and prosperous community-building.”a Nature Observation Meeting (NOM) in August that included employees andtheir family members. Other initiatives include observation from a ﬁxed pointseasons, and we also installed a watering place for the birds living there.

Promote Group Procurement/RGANIZATION

Outline of Meiden Group

MEIDENSHA REPORT 2014

.ATURE /BSERVATION %VENTS IN /SAKI 4OKYO

where participants observe the trees of ThinkPark Forest during the various
Going forward, by effectively using the discoveries or ﬁndings from past
NOMs, we would like to revitalize these community programs. This series ofprograms received a “Fiscal 2013 Environmental Award,” a secondary awardof the “Shinagawa Environmental Grand Prize (SEGP)*” of Shinagawa City.

We are working to build a stronger procurement organization
throughout Meiden Group. We conduct periodic Meiden
Group Procurement Meetings and reﬁne the programs to
improve the Group’s common procurement platform.

* The SEGP awards three organizations with “Grand Prize” and sixorganizations with “Environmental Award.”

0ROGRAMS TO IMPROVE THE PROCUREMENT PLATFORM
U Strictly comply with rules and regulations.
U Strictly implement CSR procurement
U Strengthen risk management (BCP and internal controls)
U Strengthen HR development

41

Meiden Group Sponsors Azul Claro
Numazu Soccer TeamWe support the success of the team as both sponsor and fan.

Green Procurement
Meiden Group works hard to produce eco-friendly
products that reduce the environmental impact acrosstheir life cycle from manufacturing to disposal. We
drafted “Green Procurement Guidelines” to promote
procurement of products and services with little
environmental impact. By following these guidelines,
we ensure that we practice green procurement. By
using CSR survey sheets (environmental activities
survey sheets), we can comprehend the CSR &environmental programs of our suppliers. In thismanner, they help us in our CSR procurement
activities including green procurement.

Children have fun assembling a motorized ball-type “Scroller” andlearning how to move it around.

A scene at NOM

Receiving “Fiscal 2013 Environmental
Award” from Shinagawa City

MEIDENSHA REPORT 201442

Outline of Meiden Group

Corporate Data

Area CodeMEIDENSHA CORPORATION

Capital¥17,070 million

Established

June 1, 1917
(Since December 22, 1897)

Consolidated Sales¥216,177 million

Consolidated Number of Employees

8,047

President

Yuji Hamasaki

Consolidated Subsidiaries

42 (25 in Japan, 17 overseas)

Head Office

ThinkPark Tower, 2-1-1, Osaki,
Shinagawa-ku, Tokyo, 141-6029 Japan

CapitalBusiness Entity

Japan

Meiden System Solution Corporation¥50 million

Manufacture of software for Meiden Group products,
sale and lease of maintenance and management
services for Meiden Group network, design of
information systems, and conducting of related
surveys, development, consultation, and education

Japan

Meiden System Engineering Corporation¥50 million

Design and management of Meiden Group plant
products

Singapore

MEIDEN SINGAPORE PTE. LTD.

S$25 million

Manufacture and sales of transformers, switchgears
and circuit-breakers and related engineering andconstruction services

Thai

THAI MEIDENSHA CO., LTD.

TB30.0 million

Engineering and consulting services

China

MEIDEN HANGZHOU DRIVE SYSTEMS CO., LTD.

US$19.0 million

Manufacture and sales of electric motors

U.S.A.

MEIDEN AMERICA, INC.

US$16.5 million

Sales of dynamometer products, engineering andconsulting services

Special Feature

Corporate Name

Company Name

Consolidated Subsidiary Companies as of March, 2014
Area CodeCompany Name

CapitalBusiness Entity

Japan

Kofu Meidensha Electric Mfg.Co.,Ltd.

¥400 million

Manufacture and sales of electric motors

Japan

Meiden Plant Systems Corporation¥400 million

Construction services

Meiden Engineering East Japan Corporation¥400 million

Japan

M WINDS Co., Ltd.

¥330 million

Business of wind farm and consulting services

Japan

MEIDEN SHOJI Co., Ltd.

¥300 million

Sales of electric components¥200 million

Manufacture, sale, lease, installation, wiring andprovision of maintenance services (maintenance andinspection, modification, repair, etc.) for electricalequipment, machinery and devices in the Kansai,
Hokuriku, Chugoku, Shikoku, and Kyushu regions.

Japan

Japan

Japan

Meiden Engineering West Japan Corporation

MEIFIS CORPORATION

Meiden Engineering Central Japan Corporation¥150 million¥150 million

Accounting

Japan

Meiden Environmental Service Corporation¥100 million

Operation, maintenance, management, security
management and health and safety management ofequipment related to tap water, sewage, industrial
water, etc.

¥100 million

Strategic proposal and comprehensive managementof manufacture, sale, lease, installation, wiring andprovision of maintenance services (maintenance andinspection, modification, repair, etc.) for electricalequipment, machinery and devices and provision ofrelated education

Japan

Meiden System Manufacturing Corporation

Total number
of issued shares
Number of shareholders¥95 million

Insulating varnish and molded instrumenttransformer¥90 million

Manufacture and sale of Meiden Group sheet metal
processed products and parts, design, manufactureand sale of low- and high-voltage power boards,
manufacture of electrical relays

Tokyo Stock Exchange,
Nagoya Stock Exchange

Distribution of shares by shareholder
6576,000,000

5
1

227,637,704(Including treasury shares of 713,417)
17,773

4

3

2

1.

Financial institutions

2.

Securities companies

3.93%

3.

Business companies

21.61%

4.

Overseas investors

11.91%

5.

Individuals

23.92%

6.

Other

0.32%

Number of shares held
(1,000 shares)

38.31%

Shareholding ratio (%)

The Master Trust Bank of Japan, Ltd.

15,993

7.05

Sumitomo Electric Industries, Ltd.

13,147

5.79

Japan Trustee Services Bank, Ltd.

12,194

5.37

Sumitomo Mitsui Banking Corporation

11,209

4.94

NEC Corporation

8,731

3.85

Sumitomo Mitsui Trust Bank, Limited

7,500

3.31

Meidensha employees stock ownership

5,462

2.41

SUMITOMO LIFE INSURANCE COMPANY

5,307

2.34

Mitsui Sumitomo Insurance Company, Limited

4,377

1.93

BNP Paribas Securities Corporation

3,500

1.54

Outline of Meiden Group

Sales of products and materials, and agent services
of insurance

MEIDEN CHEMICAL CO., LTD.

Total number ofauthorized shares

Name of shareholder¥100 million

Japan

Stock Listing

Major shareholders

MEIDEN KOHSAN CO., LTD.

Meiden Engineering Corporation

Share data (As of March 31, 2014)

Manufacture, sale, lease, installation, wiring andprovision of maintenance services (maintenance andinspection, modification, repair, etc.) for electricalequipment, machinery and devices in the Chubu
region (including Shizuoka and Yamanashi)

Japan

Japan

Another 23 companies

A Foundation for Building ValueJapan

Manufacture, sale, lease, installation, wiring andprovision of maintenance services (maintenance andinspection, modification, repair, etc.) for electricalequipment, machinery and devices in the Kanto,
Tohoku and Hokkaido regions.

(Note) The shareholding ratio excludes treasury shares.

43

MEIDENSHA REPORT 2014

MEIDENSHA REPORT 201444

ThinkPark Tower, 2-1-1, Osaki, Shinagawa-ku, Tokyo 141-6029 Japan

Only environmentally friendly printing
materials and printing methods wereused to produce this report.

This report is printed on
FSC-certified paper sourced
from well-managed forests.

Printed on paper made with woodfrom forest thinning. “Morino
Chonai-kai” (Forest Neighborhood
Association)—Supporting soundforest management.

Only environmentally-friendly, zero-VOC(Volatile organic compounds) 100%vegetable oil inks were used in theprinting of this report.

This report was printed using thewaterless printing method, which
contributes to reduced output ofsolutions from the printing
process that contain organic
compounds.