Sysmex
Sustainability
Report2015
Full Version

Contents
12
3
552 Involvement with Stakeholders

Contents/Editorial Policy
Corporate Philosophy
Message from the Chairman and CEO
Sysmex at a Glance

7
Highlight

19Highlight

2

53 Involvement with Customers
54 Ensuring Quality and Safety
58 After-Sales Support/Scientiﬁc Activities
62 Stable Supply
63 Enhancing Customer Satisfaction

Expanding our Lineup of Immunoassay
Analyzers and Reagents That Contributeto the Early Detection and Treatment of
Infectious Diseases, Cancer andOther Diseases

and Third-Party Evaluations

65 Contributing to Resolution of
Healthcare Issues

67 Involvement with Shareholders
69 Involvement with Business Partners
73 Involvement with Employees

Opening of i-Square, a Core Instrument
Factory Focused on Delivering
High-Quality Products in a Stable Manner

74 Respecting Human Rights and Diversity
77 Employee Evaluation, Treatment,
and Human Resource Development

83 Ensuring a Work-Life Balance
87 Respecting Workers’ Rights
88 Considering Safety and Health11
Highlight

3

Employee Volunteers Conduct Fund-RaisingCampaign to Help Fight Cancer

92 Corporate Citizenship Activities
93 Policy on Corporate Citizenship

Activities and Philanthropy
94 Activities to Promote a Healthy Society
98 Contributing to Local Communities
103 Promoting Employees’ Social
Contribution Activities

13 Global CSR Activity Highlights
13 Japan
15 Americas
16 EMEA*

19

17 China
18 Asia Paciﬁc

104 Environmental Conservation Activities
105 Environmental Policy
106 Environmental Management
1 1 1 Environmentally Conscious Products* Europe, the Middle East and Africa

Sysmex’s CSR Activities

20 CSR Management
22 Mid-Term CSR Plan
24 Results of Dialogue with Stakeholders
26 Summary of CSR Data
30 External Evaluationand Services

1 1 3 Environmental Consciousness at
Business Oﬃces

1 1 7 Other Environmental Considerations
119 Green Procurement
122 Environmental Data

35 Corporate Governance
42 Compliance
50 Risk Management

124 Guideline Comparative Table
136 Independent Opinion
13 7 Corporate Information

Editorial Policy
Organizations covered

Sysmex publishes the annual “Sysmex Sustainability Report”
in the hopes of communicating its approaches and activities
concerning corporate social responsibility (CSR) to stakeholders
and facilitating dialog with them. This report is available as a fullversion and in digest form, as well as on the Company’s website.

Sysmex Group (Sysmex Corporation and its subsidiaries both in Japan andabroad). In this report, “Sysmex” refers to the Sysmex Group as a whole.
“Sysmex Corporation” refers to the Company on a stand-alone basis.

Period covered

Informational content of each media
conducted outside this period are also included.

•
Comprehensive information
Provides exhaustive coverage of the Company’s CSR initiatives

Date of publication•

August 2015 (Adding pages on December 2015 [P. 137-138])

Excerpts of key information only
Contains excerpted content the Company wishes particularly tocommunicate to stakeholders

Guidelines referenced

Inquiries about this report• The Global Reporting Initiative (GRI)'s Sustainability Reporting

CSR Promotion Department, Sysmex Corporation• The Japanese Ministry of the Environment's Environmental Reporting1

Corporate Philosophy

Core Behaviors
To our Customers
We deliver reassurance to our customers, through unmatched quality, advanced technologies, superior support,
and actions that consistently reflect the viewpoint of our customers. We constantly look out for our customers’true needs, and seek to generate new solutions to satisfy those needs.

To our Employees
We honor diversity, respect the individuality of each employee, and provide them with a workplace where
they can realize their full potential. We value the spirit of independence and challenge, provide employeeswith opportunities for self-fulfillment and growth, and reward them for their accomplishments.

To our Business Partners
We deliver commitment to our client companies through broad-ranging partnerships. We strive to be a company
that can grow in step with our trade partners, through respect and mutual trust.

To our Shareholders
Our shareholders can rest assured that we will continue to improve the soundness and transparency of ourmanagement policies, while promoting information disclosure and close communications. We commit ourselves
to a consistent yet innovative style of management, in order to achieve sustainable growth and increased
shareholder value.

To Society
We carry out our business in strict compliance with laws and regulations, as well as in adherence to high ethicalstandards. As a responsible member of society, we play an active role in resolving environmental issues andother problems that impact our society today.

2Message from the Chairman and CEO

We address the shared desire of all people to remain healthy
by providing products and services backed by leading-edge
technologies and building trust and confidence.

Contributing to the Advancement of Healthcare
through Testing

emerging markets, with these products we expect to provide
advanced testing in numerous regions and circumstances.

In line with our mission of “shaping the advancement ofhealthcare,” which is defined in the “Sysmex Way,” thecorporate philosophy for the Sysmex Group, Sysmex works
to contribute to the development of healthcare and thehealthy lives of people. Since our founding in 1968, we havecreated a wide spectrum of products and services in thein-vitro diagnostics field based on advanced technologies,
and the Group’s products are used in more than 190 countries
around the world.
In recent years, the environment surrounding thehealthcare business has changed dramatically. In advanced
countries, new needs are emerging as populations age andattention focuses on individually optimized healthcare(personalized medicine). Meanwhile, emerging markets—
including China and countries in Southeast Asia and Central
and South America—are working to expand their healthcare
infrastructures and offer more sophisticated healthcare inline with their economic development.
In this environment, testing is playing an increasingly
important role in illness prevention, early detection and thedetermination of treatment methods. We aim to swiftly
address these changes in the environment and respond topeople’s desire to remain healthy by meeting increasingly
diverse and advanced testing needs.
In fiscal 2014, we launched the HISCL-800, a new productin the HISCL-Series of automated immunoassay analyzers
that aids in the diagnosis of infectious diseases, cancers, heartdiseases and autoimmune diseases and in monitoring theircourses of treatment. This product inherits such series
characteristics as minute samples, a high degree of sensitivity
and fast measurement, and is compact, being approximately
60% the width of existing models. We also introduced the
XN-L-Series, a compact automated hematology analyzer.
Aimed primarily to meet demand at small and medium-sizedfacilities in advanced markets and expected growth in

Building Trust and Confidence among
Stakeholders
In keeping with its corporate philosophy, Sysmex prioritizes
the building of trust and confidence among its stakeholders.
In fiscal 2014, we responded to growing global demand
for testing by reorganizing our instrument manufacturing
structure, creating a system to ensure the stable delivery of
products of even higher quality. We opened the doors ofi-Square, a new factory in the city of Kakogawa, Hyogo
Prefecture, and expanded the factories at two Group
companies in Japan. These moves will approximately triple
our future supply capacity at our four factories, including
Kakogawa Factory. We also set up a logistics center within
i-Square to directly link our manufacturing and distributionfunctions. At the same time, we revised our product packaging
materials and promoted such reforms as increasing loading
ratios. In addition to making logistics more efficient, thesemoves are helping to reduce our CO2 footprint. Overseas,
we augmented production capacities at our reagent
factories in Singapore and Germany. As well as ensuringhigh levels of quality and production efficiency, we strove
to make these factories even more comfortable places for
employees to work.
Besides its business-related initiatives, Sysmex also
undertook a variety of social contribution activities. For
example, because as a healthcare company we believe incontributing to a healthy society through sports, we havesupported the Kobe Marathon since its inception. We werea special sponsor of the fourth Kobe Marathon, which washeld in November 2014, and our volunteers supported event
operations in such ways as providing water to runners.
Overseas, we conduct a host of social contribution
activities tailored to the characteristics of individual regions.
To help stamp out cancer, one of the world’s most deadly3diseases, in fiscal 2014 we launched the Sysmex Against
Cancer campaign in the EMEA* region. Employee volunteers
from different locations joined together in planning andconducting a variety of fund-raising events, with proceeds
donated to the World Cancer Research Fund.
* Europe, the Middle East and Africa

Aiming to Make Further Progress with a New
Mid-Term Management Plan
We have recently formulated a new Group mid-term
management plan to guide Sysmex through fiscal 2017.
In addition to developing high-value-added productsthat anticipate customers’ needs and rolling out a global
business strategy, this plan calls for the Company toaugment management soundness and transparency byrevising its internal control system. These measures areintended to enhance our sustainable corporate value.
We will also reinforce interactive communication withdiverse stakeholders.
When formulating our mid-term management plan,
we also revised our mid-term CSR plan. This plan is basedon the 10 principles of the United Nations Global Compact,which the Company joined in 2011, and ISO 26000. The
plan calls for further globalization of our businesses andre-establishes targets for future activities based on theincreasingly diverse and sophisticated demands andexpectations of our stakeholders.
Sysmex aims to continue achieving sustainable growth
going forward and strives to earn the trust of all our
stakeholders. As we undertake these endeavors, I ask for yourfurther understanding and support going forward.

July 2015
Hisashi Ietsugu
Chairman and CEO

4

Sysmex at a Glance

Supporting the Lives and Health of People Worldwide by
Providing the Instruments, Reagents and Software used in
In-Vitro Diagnostics*
Addressing
the Problems
Faced byPatients and
Healthcare
Professionals
Reducing the Burden on Patients

Helping Physicians Diagnose Swiftly

Reducing the Burden for Laboratory
Technologists and Enhancing Efficiency

Sysmex products
are in use
near you.

3

1

1

3
2
1

5

2

* In-vitro diagnostics are a type of laboratory testing. Whereas In-vitro diagnostics
involves tests conducted directly on patients’ bodies, such as electrocardiograms
and ultrasound, with In-vitro diagnosis tests are performed on samples (specimens)
taken from a patient’s body, such as blood and urine, analyzing the shape and numberof constituents and cells contained in these samples.

Integrated
Systemfrom R&D to
After-Sales
Support
R&D

Production

Sales

After-sales Support

1 Hospitals

Hematology Field

Urinalysis Field

Hematology, which involves measuring
and analyzing the number, type andsize of red, white and other blood
cells, allows the presence of anemia or
infectious disease to be determined.

Urinalysis entails testing forthe presence of sugar, protein
or blood in the urine, aiding in
the diagnosis of a variety of
diseases.

XN-Series XN-2000
Automated Hematology Analyzer

UF-1000 i
Automated Urine Particle Analyzer

Hemostasis Field

Life Science Field

Hemostasis supports the diagnosis andtreatment monitoring of the mechanismthat prevents blood from clotting (as inhemophilia) or disorders resulting fromthrombi (as with cerebral infarction).

Leading-edge technologies are used to analyze genes and proteins,performing molecular diagnostics related to diseases, centeringon cancer.

CS-5100
Automated Blood Coagulation Analyzer

Immunochemistry Field

The One-Step Nucleic Acid Amplification (OSNA) method that Sysmex has
developed can be used to detect target genes in lymph nodes quickly, easily
and with a high degree of precision. This technology is currently eligible for
insurance coverage in testing for breast cancer, colorectal cancer and stomach
cancer. The technology is also a focus of R&D attention in realizing personalized
medicine, including for studying the effectiveness of anti-cancer agents.

Immunochemistry is performed on blood
serum, the supernatant fluid isolated
after blood separates, to test for thepresence of the hepatitis virus, measurethyroid hormone and check for cancer.
HISCL-5000
Automated Immunoassay System

2 Animal Hospitals
Our products for animals help manage the healthof dogs and cats, as well as aquarium dolphinsand zoo animals.

RD-100 i
Gene Amplification Detector

3 Sports Training Facilities
Our health monitoring analyzer measuresures
pling andhemoglobin levels without blood sampling
ondition.
is used as a tool for monitoring athletic condition.

pocH-100iV Diff
Automated Hematology Analyzer

ASTRIM FIT
Health Monitoring Analyzer

6

Highlight 1
Expanding our Lineup of Immunoassay Analyzers andReagents That Contribute to the Early Detection andTreatment of Infectious Diseases, Cancer and Other Diseases
Launch of a Compact and High-Performance Immunoassay Analyzer to Meet
1 Diverse
Needs around the WorldAs a way of measuring proteins and other substances inthe blood, immunochemistry testing has a wide range ofapplications, from diagnosis of infectious diseases, cancers,
heart diseases and autoimmune diseases to monitoring thecourse of treatment. As such, immunochemistry testing
plays an essential role in the early detection of diseases
and determination of therapeutic effects. To meet a variety
of testing needs related to immunochemistry testing, Sysmex
has expanded its lineup of HISCL-Series automatedimmunoassay analyzers.
In September 2014, we launched the HISCL-800, which
carries forward such HISCL-Series characteristics as minutesamples, a high degree of sensitivity and fast measurement(requiring only 17 minutes). At the same time, the HISCL-800

is space-saving, with a footprint approximately 60% thewidth of the HISCL-5000. This instrument, which offers
high functionality and performance, as well as being
space-saving, is expected to contribute to high-value-added
testing in emerging markets such as China and other Asian
countries that are slated for future growth. Contributing totesting efficiency, the interface employs a large, 21-inchcolor touch-panel display and uses large icons to ensure ahigh level of visibility and operability.
This model works with the Sysmex Network
Communications Systems (SNCS)* to determine the statusof a customer’s instrument and pre-empt malfunctions.
This functionality helps in configuring a testing environmentthat is convenient and instills customer confidence.
* A separate agreement is needed to use this service.

HISCL-800
Automated Immunoassay System

Diseases for which immunochemistry tests contributeto diagnosis and monitoring of courses of treatment

Infectious
diseases

CancerHeart
diseaseAutoimmune
diseases

Principal characteristics of HISCL-Series fully automatedimmunoassay analyzers

Rapid
measurement
requiring only

17
minutes

Minutesamples(10–30μL)

Highsensitivity• Increased testing efficiency• Highly reliable testing results• Reduced burden on patients
7

Instrument width
approximately

60of the existing model, the HISCL-5000

Space-saving%

C

What is viral hepatitis ?

One of Japan’s mostprominent infectious diseases
Affecting
some

B

3

New Reagent That Helps to2 AReduce
the Burden on Patients
When Diagnosing Hepatic
Virus-Induced Diseases

millionpeopleMay lead to liver cirrhosis andhepatocellular carcinoma
Characteristics of the new reagent, HISCL M2BPGi

Reduces the burden on patientsand leads to more efficient testing
Quickly determines liver fibrosis progression
with only a blood sample
Asymptomatic
virus carriers,
acute hepatitis

Chronic
hepatitisLivercirrhosis

Hepatocellular
carcinoma

Degree of liver fibrosis progression≒ Potential development into liver cirrhosis,
hepatocellular carcinoma

In January 2015, Sysmex’s new reagent for the HISCL-Series,
the HISCL M2BPGi Assay Kit, received approval for healthinsurance coverage in Japan. This reagent is able todetermine in a short period of time the degree of liver
fibrosis progression (hepatic fibrosis).
Left untreated, viral hepatitis, one of Japan’s leading
infectious diseases, can progress from chronic hepatitis andliver cirrhosis to hepatocellular carcinoma. To treat thisdisease, determining the degree of hepatic fibrosis due tothe hepatitis virus is key. At present, the typical testingprocess involves living tissue diagnosis, or taking a biopsyof the liver tissue. This method requires hospitalization,
placing a substantial burden on the patient on both thephysical and economic fronts.
Using the HISCL M2BPGi Assay Kit and HISCL-Series
immunoassay analyzers (HISCL-5000/2000i /800) allows
the degree of hepatic fibrosis progression to be quickly
measured with only a blood sample. This method is expected
to reduce the burden on the patient and lead to more
efficient testing.

to the Automation of Testing for Atopic Dermatitis and Greatly
3 Contributing
Reducing the Time Required for Diagnosis
In April 2014, Sysmex began offering the HISCL TARC Assay
Kit for diagnosing atopic dermatitis.
An objective approach to diagnosing atopic dermatitis
involves measuring the amount of a substance called TARC*
produced in the blood, thereby evaluating the severity ofthe disease and measuring therapeutic effects. In the past,these tests have been performed manually, typically requiring
more than three hours. By using a HISCL-Series instrument
and the HISCL TARC Assay Kit, this testing can be automated,
reducing testing time to only around 17 minutes.
By further expanding its lineup of immunoassay analyzers
and reagents, Sysmex aims to contribute to enhancing thequality of testing and reducing the burden on patients.

Time required to measure
TARC production volume

Substantiallyreduces testing time
To approximately

1/11

of manual method* An abbreviation for thymus and activation-regulated chemokine, a substancethat causes cells in the blood to migrate to the skin, resulting in allergic
inflammation.

CustomerComment(From approximately 3 hours,
15 minutes to around 17 minutes)

Impressions from Using the HISCL-800: “Easy to Use and Hassle Free”
We decided to introduce the HISCL-800 because it was perfectly sized for our laboratory and because of the quick,polite and reliable responses of Sysmex’s sales, support and scientific personnel. In addition to the instrument
itself being compact, all the necessary reagents can be stored within the instrument, which makes the lab neatand tidy. The touch-screen monitor makes the instrument easy to use and it requires hardly any maintenance.
From my perspective, the HISCL-800 is easy to use and hassle free.

Momoyo Sakai, Chief of Clinical Laboratory, Healthcare Corporation TOSEIKAI, Suwa Maternity Clinic
8

Highlight 2
Opening of i-Square, a Core Instrument Factory Focusedon Delivering High-Quality Products in a Stable Manner

the Group’s Overall Production System to Meet Growing Demand
1 Rearranging
for Testing
Sysmex leverages its advanced “made in Japan” technologicalcapabilities to manufacture IVD instruments that are shipped
to customers in more than 190 countries.
Recent years have seen increasing healthcare and testingneeds in China and other emerging markets, as well as
advanced countries, and demand for our instruments hasgrown sharply. In response to these conditions, in June2014 Sysmex established i-Square, a new factory in the cityof Kakogawa, Hyogo Prefecture, with a site area of 30,000
square meters. We took the establishment of i-Square asan opportunity to revise the Group’s instrument production

system. We reorganized our structure to manufacturecompact models at the Kakogawa Factory, as well as theSysmex Medica and Sysmex RA factories. Sysmex Medica(Himeji, Hyogo Prefecture) specializes in the assembly ofunits for high-end models, and Sysmex RA (Shiojiri, Nagano
Prefecture) focuses on the manufacture of peripheral
equipment for IVD instruments.
These revisions will allow the Sysmex Group to triple
its instrument manufacturing capacity, thereby meeting
growing global needs.

a System to
2 Configuring
Manufacture and Supply

i-Square Features Manufacturing

High-Quality Products Efficiently

Uncompromising
pursuit of highquality

The manufacturing area at i-Square is designed around theconcept of manufacturing high-quality products through a
combination of people and technology, promoting the use of
ICT in “digital manufacturing.” The Smart Pro manufacturing
support system directs workers and testing personnel,
accumulates working and testing results, and creates
manufacturing and testing records. Linking with Smart Pro
are 3D “moving manuals” that use displays to demonstrate
operations to workers using three-dimensional animations,
resulting in high-quality, highly efficient manufacturing.
i-Square also serves a central function in managing
instrument logistics. Whereas in the past instruments
manufactured at our factories were stored in external
warehouses, i-Square houses an internal logistics center
that directly links the manufacturing and logistics functions.
This system allows inventories to be managed as products
are manufactured. By significantly improving operational
efficiency, the new arrangement enables us to provide
instruments to the market more swiftly than in the past.

Utilization of

Screen from a 3D moving manual

ICT(Information andCommunications
Technology)

in manufacturing

i-Square Features Logistics

Achieves highly efficient operations

Directly linking the
manufacturing andlogistics functions

9

Overview of Instrument Manufacturing Locations
Sysmex,i-SquareSysmexKakogawa Factory

Sysmex Medica

Sysmex RA

Location

Kakogawa,
Hyogo Prefecture

Kakogawa,
Hyogo Prefecture

Himeji,
Hyogo Prefecture

Shiojiri,
Nagano Prefecture

Site area

Approx. 30,000m2

Approx. 12,000m2

Approx. 7,300m2

Approx. 6,100m2

Floor space

Approx. 20,000m2

Approx. 9,800m2

Approx. 4,400m2

Approx. 6,000m2

Main products

High-end models

Compact models

High-end units

Peripheral equipment

Eventually Approximately

Tripling
the Group’s
Overall Instrument
Manufacturing Capacity

Responding to Growing Global Needs for Testing
I-Squarefor the Environment
3 Considerationand the Local Community

Using Natural Energy
at i-Squarei-Square is designed to minimize environmental impact.
LED lighting and solar power modules have been introduced
to conserve energy and lower CO2 emissions. Furthermore,
the factory is surrounded by a variety of greenery, with trees,
water and light in abundance. A mound of earth near theentrance of i-Square serves as an important symbol for thefactory. Made with excess soil from construction that wasleft in place rather than being carted away, the hillock
serves as a reminder of this reduced environmental impact.
The industrial complex where the factory is situatedadjoins a housing area, and numerous schools are locatednearby. Sysmex has set aside a portion of its site as anaccess road for students commuting to school, and hasreceived a certificate of appreciation from the city of
Kakogawa for its contribution to children’s safety during
their commute to school.
Going forward, Sysmex plans to continue its efforts toreinforce its manufacturing and logistics structures to takethe environment into consideration while ensuring thestable provision of high-quality products around the world.

Employee
Comment

Reducing
Environmental Impact
Generating110

kWh throughSolar Power(Accounting for 10% of all power used at i-Square)In fiscal 2014, greenhouse gas
emissions at Sysmex’s factories
and primary business offices were
down 9% year on year per unit ofsales, although the absolute
number increased due to theestablishment of i-Squareand other factors.

An Easy Factory for Employees to Work in, and Convenient for Hosting Tour Guests
i-Square is a marriage between natural beauty and functionality. The facility is “people-friendly” in that in addition
to being a comfortable place to work, it is convenient for hosting tour guests and people in the surrounding
community, and features an abundance of trees, water and light. The manufacturing area is characterized by apillarless, astylar configuration. This arrangement allows layouts to be flexibly adjusted as demands dictate.

Wataru Kaneshika, Production Control Department, Instrument Production Division, Sysmex Corporation
10

Highlight 3
Employee Volunteers Conduct Fund-Raising Campaign
to Help Fight Cancer

1 “Sysmex Against Cancer” Campaign
Cancer is the world’s deadliest disease. Given that the
number of deaths from cancer is forecast to continue
increasing, in addition to improving treatment methods
there is a growing need to address the illness throughprevention and early detection. Sysmex manufactures andsells products that assist in the early detection of cancer.
We also make donations*1 to the American Cancer Society
and other organizations that work to prevent and conduct

research on cancer. In these ways, the Company is working
proactively to contribute to society by fighting cancer.
In fiscal 2014, employee volunteers at Group companies
in the EMEA*2 region launched the cancer-fighting campaign“Sysmex Against Cancer.”*1 For details, please see the section on page 15 of this report, entitled “Making
Ongoing Contributions to Organizations That Support Cancer Prevention
and Research”*2 Europe, the Middle East and Africa

in a Number of Fund-Raising
2 Leading
Activities in the EMEA*1 Region

World Cancer Status

The World’s
Deadliest Disease
Deaths from
Cancer13.0

As part of the Sysmex Against Cancer campaign, a dedicatedwebsite has been set up to publicize the host of events
employees have planned and to solicit donations. These
funds are donated to the World Cancer Research Fund*2,
which raises awareness of cancer prevention andsupports research.
These activities span the entire EMEA region, from
Russia to South Africa, from the United Kingdom to theMiddle East. Events are diverse, including sales of food,precious stones and caps, holding auctions and hosting
lectures by specialists. As of April 2015, a total of 162 events
had been held.

millionThroughout the world, an estimated
14.0 million people fell ill with cancer
in 2012, and around 8.2 million
people died from the disease. By
2030, these figures are forecast to
climb to 22.0 million and 13.0
million, respectively.

8.2

million*1 Europe, the Middle East and Africa*2 The World Cancer Research Fund is a non-profit organization headquarteredin London, England. The fund promotes awareness of cancer-prevention
measures and provides funding for scientific research on the relationshipbetween cancer and such factors as food, exercise and obesity.

Source: World Cancer Report
2014, International Agency for
Research on Cancer

2012(Estimate)

Employee
Comment

2030(Forecast)

A Major Project Combining the Efforts of Employees in 15 Countries
Many people in our lives are affected by cancer in one way or another. Sysmex is no exception. Sadly, two of
our beloved colleagues passed away from cancer on the same day. As people involved in healthcare, thisevent led us to wonder what we might be able to do, and we launched the “Sysmex Against Cancer” campaign.
On April 12, 2015, employees in 15 countries combined their energies to take part in a major project.

Jos van de Ven, IVD Division, Sysmex Nederland
11

Contribution Activities through3 Conducting
the NN Marathon Rotterdam
Amassing Donations throughSysmex Against Cancer

On April 12, 2015, one of the largest projects so far in theSysmex Against Cancer campaign was held to raise funds
through the 2015 NN Marathon Rotterdam. Each year,
more than 20,000 runners take part in this event, which is
the largest marathon in the Netherlands. Some 96 Sysmex
employees—92 from Europe, one from the Middle East andthree from Africa—ran in the marathon. When participants
applied to take part in the marathon, they agreed to try andraise funds for the World Cancer Research Fund.
As a result of these activities, by the end of April 2015
the Sysmex Against Cancer campaign had raised a total of€241,733 (approximately ¥31.5 million*) which it contributed
to the World Cancer Research Fund. Through this campaign,
we plan to continue contributing to the fight against cancer.
Going forward, in tandem with employees and local
communities Sysmex will continue working proactively onsocial contribution activities that address the various
problems society faces.

Contributing to the World
Cancer Research Fund

€241,733(Approximately ¥31.5 million)

Contribution presentation
ceremony*Calculated at €1.00 = ¥130.32, the exchange rate on March 31, 2015

Sysmex employees who participated in the NN Marathon Rotterdam

Overview of the Sysmex Against Cancer
Campaign

162
Fund-Raising
Activities,

IncludingParticipation in the NN
Marathon Rotterdam

Taking part in a host of fund-raising activities

12

Global CSR Activity Highlights

Japan
Space-saving
Approximately

In the Hematology Field,
Launch of Compact Models
in the XN Family

70%
the width ofcurrent products*

In December 2014, Sysmex launched the XN-L-Series (XN-550, XN-450
and XN-350) of automated multiparameter hematology analyzers.
These compact models are part of the Company’s flagship model inthe hematology field, the XN-Series. The width of the systemcomprising the new series and its data processing unit have been
reduced to about 70% that of current compact models*. In addition,
the new series offers high levels of performance and operability, andis aimed at small- and medium-sized healthcare facilities, as well as
emergency laboratories at large-scale institutions.
* Compared with the XN-350 and XS-800i (main instrument plus data processing unit)

XN-550

XN-450

XN-350Establishment of a New Development Basefor Companion Diagnostic Drugs

Technical Training at the Monozukuri
Training CenterIn the area of cancer treatment, demand is growing to realize andpromote personalized medicine, which is optimized for individual
patients. In line with this trend, expectations are growing forcompanion diagnostic drugs, which are used to predict theefficacy and side effects of drugs before using them as treatment.
To accelerate R&D on companion diagnostic drugs, in December
2014 Sysmex established a new base on Kobe Port Island todevelop these drugs and provide lab assay services.

Sysmex has established the Monozukuri Training Center at its
Kakogawa Factory to provide technical training for new
employees, as well as part-time and temporary employees.
This center was expanded in fiscal 2014 as part of the renovation
work conducted at Kakogawa Factory, increasing the numberof training topics it handles. We have also shared this center’s
educational know-how with other factories to augment on-site
human resource development.
Total Number of People Undergoing Training at the
Monozukuri Training Center

1,000

Base for companion
diagnostic drug
development and lab
assay services

13

238

302

2010

2011

669

709

2012

2013 2014(FY)

Sponsorship of the Kobe Marathon 2014

Introduction of a Social Contribution
Point Program to Encourage Employee
Volunteer Activities

Sysmex Corporation has been a special sponsor of this event
since its inception. With a theme of “Thanks and Friendship,”
the Kobe Marathon is meant to express the gratitude of thepeople of the Kobe area to everyone who assisted in thereconstruction of the region following the Great Hanshin-Awaji
Earthquake. For the fourth marathon, held in November 2014,
Sysmex supplied bib numbers to runners and fielded volunteers
who provided operational support. Sysmex also exhibited at the
Kobe Marathon
EXPO.

Sysmex introduced a Social Contribution Point Program in April
2014. Under this program, employees earn individual points
for taking part in social contribution activities, as well as forparticipating in social contribution events sponsored by theCompany. The Company makes a donation corresponding to thenumber of points accumulated at the end of each fiscal year.
Under this program, in fiscal 2014 Sysmex donated ¥970,000
worth of measles vaccines, antimalarial mosquito nets andemergency medical kits to developing countries via UNICEF.

The result of the Social Contribution Programin Fiscal 2014
Approximately 28 % of Group employees in Japan participated,a total of 837 people.
A total of ¥972,200 was donated, corresponding
to 9,722 points.
• Measles vaccines: 10,600 doses• Emergency medical kits: 78• Antimalarial mosquito nets: 770
Volunteers providing water(136 Group employees and their family members participated)

Average training hours
per employee (fiscal 2014)

Approximately

28

hours

Average training expenditure
per employee (fiscal 2014)

Approximately¥160,000

Human Resource
Development Basedon Four Concepts
Based on its four concepts for human resource development, Sysmex
Corporation operates a training system offering selective, rank-basedand elective training that seeks to nurture personnel in a planned andgradual manner. In fiscal 2014, on average each employee underwent
28.2 hours of training, and average per-employee expenditure amounted
to ¥157,789*. Furthermore, in April 2015 Sysmex opened the Global
Communication Center in Okuike, Ashiya, Hyogo Prefecture. This new
facility aims to serve as a gathering place for people of diverse culturesand values, encouraging communication in surroundings that provide
a break from everyday routines and foster broader networks.
* This figure indicates training provided by the Human Resources Department and excludes certain
types of training, such as self-development and training related to specialized work for divisions.

Four Concepts of Human
Resource Development

New employee training

Global Communication Center (theater room)

14

1

Link training, evaluation andwork (show results)

2

Promote globalization of
the Sysmex Group3

Invest in ongoing humanresource development

4

Be a company that cultivates
human resources andpersonal growthGlobal CSR Activity Highlights

Americas
Providing Extensive
Support to Boost
Customer Satisfaction
Sysmex America, the regional headquarters for the Americas, has striven
over many years to provide customer support to ensure that instruments
operate soundly at customer sites. As one indicator of the successof such support, the company has received the top ranking among
manufacturers of hematology analyzers in an IMV ServiceTrak survey(sponsored by IMV) of customer satisfaction for 15 consecutive years.
Sysmex America has also won the Ace-Award (sponsored by Confirmit)
for four consecutive years for excellent corporate results on customer
feedback. Furthermore, the company scored well in an independent
survey conducted in 2014, receiving an overall rating of 9.1 out of a
10.0 scale for customer satisfaction.

Customer
Satisfaction Survey
Ranks Sysmex America

No.1

for 15 ConsecutiveYears

IMV ServiceTrak Results(Out of 10 possible satisfaction points)

8.45

9.18

8.95

8.63

2013
Competitor 1
Recording a video showing customers how to use an instrument

Making Ongoing Contributions to
Organizations That Support Cancer
Prevention and Research

2014
Competitor 2

Sysmex Americas

Competitor 3

Industry Avg.

Selected for the Companies That Care Honor
Roll for the Seventh Consecutive Year
Recognized for its corporate citizenship activities and proactive
efforts to make the workplace motivating for employees,
Sysmex America was selected for the Companies That Care
Honor Roll, sponsored by Companies That Care, a U.S. nonprofit
organization. This was the seventh year in a row the company
has been selected for this honor.

To achieve its goal of contributing to a healthy society, Sysmex
America regularly donates to organizations that support cancer
prevention and research. In fiscal 2014, the company donateda total of $79,000* to the American Cancer Society, theAmerican Heart Association and the Leukemia & Lymphoma
Society. The company’s employees also actively participatedas volunteers in events held by these societies.
* Including donations received through fund-raising campaigns

Employees and their families who participated in fund-raising events

15

Global CSR Activity Highlights

EMEA*

Support for
Non-profit Organization
Building Medical
Infrastructure in Kenya

Helping
to Curb
the Increase inHIV

In fiscal 2010, Sysmex donated hematology analyzers in support ofILFAR, a non-profit organization dedicated to building an HIV/AIDS
treatment infrastructure in Kenya, and Sysmex has continued to provide
support since then. ILFAR provides education about HIV/AIDS andconducts regular free screening in the area. In September 2014, theorganization provided free screening for more than 2,300 residents ofthe village of Pumwani, Kenya. In fiscal 2014, Sysmex made a donation
to ILFAR corresponding to the screening costs for 1,100 people.

Hematology analyzer donated by Sysmex*Europe, the Middle East and Africa

Infection

Performing treatment

Providing Training for Distributors
and Employees

Improving Health through Sports
In fiscal 2014, Sysmex Europe opened the Sysmex Gym, fitted
out with various types of sports equipment. The gym offers
training in various sports, including kick-boxing and pilates.
To foster an interest in sports among numerous employees,
the gym offers entry-level training by professional coaches,and specialists provide massages, creating an environment
where gym-goers can enjoy maintaining their health.

Conducting highly precise testing requires an appropriate levelof technological and scientific knowledge. To foster thisexpertise, Sysmex Europe, the regional headquarters for EMEA*,
has established the Sysmex Academy to provide training for
key distributors and employees alike. The company has also
set up training centers in various EMEA regions, providing an
education system that offers instruction supervised by theSysmex Academy.
* Europe, the Middle East and Africa

Training at the Sysmex Academy

Sysmex Gym

16

Global CSR Activity Highlights

China
Providing Leading-Edge
Scientific Information to
Healthcare Professionals
Since 1998, Sysmex has conducted scientific seminars for healthcare
professionals in China, where economic development and population
growth are leading to rapid growth in demand for healthcare andtesting. On November 1, 2014, we held the 17th Sysmex Scientific
Seminar in China in the city of Kunming. Attended by 780 people fromthroughout China, the seminar disseminated leading-edge informationon laboratory testing.

Seminar underway

780

Participants fromthroughout
China

Greeting by President Ietsugu

Collaborating with a College to
Cultivate Engineers

Wuxi Reagent Factory Named a “Fiscal 2014
Trusted Company” by the Jiangsu Province
Food & Drug Administration

China, where testing demand is growing at a rapid pace, faces
an urgent need to provide laboratory testing instrument
engineers with the requisite specialized knowledge andtechnological skills. To address this need, Sysmex Shanghai and
the Shanghai Medical Instrumentation College (SMIC) together
operate a training center for engineers. In fiscal 2014, five
SMIC instructors with advanced instruction credentials andthree Sysmex Shanghai engineers with extensive operational
and technological experience participated in this project.

In fiscal 2014, the Sysmex Wuxi Factory was named a “Fiscal
2014 Trusted Company” by the Food & Drug Administrationin Jiangsu Province, where it is located. The authority selected
the Wuxi Factory for this distinction from among all companies
in Jiangsu Province involved in the manufacture of medical
equipment, based on their legal compliance.

Engineers in training

Sysmex Wuxi

17

Global CSR Activity Highlights

Asia PacificExpanding
Our Reagent Factoryin Singapore to
Ensure a Stable Supply
Sysmex is augmenting its reagent production capacity to ensure a stablesupply of reagents to meet a growing demand for testing, particularlyin emerging markets. In fiscal 2014, Sysmex renovated its factory in
Singapore, prioritizing efforts to take the global environment into
account, ensure high manufacturing quality and efficiency, and allow
for future product additions. Production capacity at this factory will
be steadily increased to approximately three times its former level.

Production
Capacity toApproximately

TripleProduction area inside the factory
Building housing the new reagent factory

Contributing to Testing Quality Improvements
in Asian Countries

and the Philippines. Sysmex also provides technological andacademic expertise to local healthcare professionals.

Sysmex is supporting efforts to put in place healthcare
infrastructure and enhance the quality of healthcare in emerging
markets and developing countries in Asia. For example, we workwith local governments and academic societies to provide
external quality control* in an effort to standardize testing
results. We continued these efforts in fiscal 2014, supporting
external quality control in countries including Mongolia, Thailand* External quality control: A process for confirming the accuracy of measurement
data by comparing such data from the diagnostic instruments of specific institutions
with those of the reference counter (an instrument that provides measurement data
accepted as standard) and other institutions

Providing Free Screening for a Genetic Blood
Disorder in Indonesia
In Indonesia, a large number of people are affected by thalassemia,
an illness marked by symptoms such as dizziness, but people
with mild cases may not even be aware that they have thedisorder. To address
this situation, in May
2014 Sysmex
Indonesia conducteda free screening eventthat attracted morethan 2,000 people.

Major Support Activities in Fiscal 2014

Mongolia• Conducted external quality control twice each in the fields of hematology
and clinical chemistry• Concluded an ongoing contract with the Mongolian Ministry of Health toprovide external quality control support• Performed lectures at a seminar attended by institutions participating inexternal quality control

Thailand• Conducted external quality control four times in the hematology field• Performed lectures at a seminar attended by institutions participating inexternal quality control

Philippines • Conducted external quality control three times in the hematology field
Cambodia• Concluded a contract with the Cambodian Ministry of Health to provide
support for external quality control in the hematology field

Screening event

18

CSR Management

Mid-Term CSR Plan

We conduct CSR activities in accordancewith the corporate philosophy for theSysmex Group and the 10 Principles of theUnited Nations Global Compact.

We have formulated a Mid-Term CSR Planfor the period from fiscal 2015 through fiscal
2017, and we conduct our CSR activities
accordingly.

Results of Dialogue with
Stakeholders

Summary of CSR Data

We consider opportunities to engage directly
in dialog with our stakeholders important,
and we reflect their opinions and requests in
our CSR activities.

External Evaluation
We have been selected as a member ofrepresentative SRI indexes. We have also
received a variety of awards andcommendations from third-party
organizations.

19

We introduce a host of data related to ourstakeholder and corporate citizenshipactivities, as well as environmental
preservation activities.

Basic Policy

Sysmex CSR Builds Trust and Confidence through Practice of
the Sysmex Way
Sysmex CSR builds trust and confidence among all its stakeholders through the practice of
the Sysmex Way, the corporate philosophy of the Sysmex Group. The Sysmex Way indicates
the way the most basic corporate activities ought to be conducted, consisting of threeelements necessary for continued growth: Mission, Value and Mind. The mission expresses
the expansion of our business from activities centered on the field of diagnostics—a focus
since our establishment—to the broader healthcare domain with its even closer connection
to human health. In this manner, the mission asserts our aim of contributing toward therealization of a society filled with abundance, health and joy.
The Core Behaviors clarify provision of specific value to customers, employees, business
partners, shareholders, society and all our stakeholders. For example, to provide
reassurance to all members of society we carry out our business in strict compliance withlaws and regulations, as well as in adherence to high ethical standards. We also consider it
important to play an active role in resolving environmental issues and other problems that
impact our society today.

Promoting CSR Activities Based on the Global Compact's 10
Principles and ISO 26000
Sysmex joined the United Nations Global Compact in February 2011 to become moreproactive in its CSR initiatives.
We have formulated a mid-term CSR plan and are undertaking CSR activities based on these10 principles, as well as ISO 26000, the international standard for social responsibility.

20

The UN Global Compact's 10 Principles
Human Rights

Principle 1: Businesses should supportand respect the protection ofinternationally proclaimed human rights;
andPrinciple 2: make sure that they are notcomplicit in human rights abuses.

LabourPrinciple 3: Businesses should uphold thefreedom of association and the effective
recognition of the right to collective
bargaining;
Principle 4: the elimination of all forms offorced and compulsory labour;
Principle 5: the effective abolition of childlabour; andPrinciple 6: the elimination of
discrimination in respect of employment
and occupation.

Environment

Principle 7: Businesses should support aprecautionary approach to environmental
challenges;
Principle 8: undertake initiatives topromote greater environmental
responsibility; andPrinciple 9: encourage the development
and diffusion of environmentally friendly
technologies.

Anti-Corruption Principle 10: Businesses should work
against corruption in all its forms,
including extortion and bribery.

Activities to Instill the Corporate Philosophy

A Senior Executive Officer Living in the United States Conducts
Courses in Japan Themed on the Sysmex Way
A senior executive officer of Sysmex, who is also CEO of
Sysmex America, held a course for various departments inJapan aimed at instilling the "Sysmex Way."In the course, he discussed the relationships between the
Company’s operations and the Sysmex Way, the impact thisphilosophy has on customers and his experiences in the
United States. The course was followed by questionand-answer session featuring a lively exchange of views.

21

The course underway

Mid-Term CSR Plan

Formulation of a New Mid-Term CSR Plan Responding toIncreasingly Diverse and Sophisticated Social Requirements
and Expectations
In May 2015, Sysmex formulated a new Mid-Term CSR Plan in response to increasingly
diverse and sophisticated social requirements and expectations.
Regarding ongoing themes such as risk management and customer satisfaction, we willreinforce our structures from a global perspective. We also set new targets to increase
employee satisfaction in order to maintain and enhance an attractive and pleasant working
place.
For the future, we plan to incorporate the opinions of stakeholders and define material
issues.
Mid-Term CSR Plan (Fiscal 2015–2017)
Category
Organizational
governance

Mid-Term
CSR Issues
Reinforcement ofour global risk
management
structure

Reinforcement of
the compliancesystemMeasures

Specific Developments(Fiscal 2015)

Deploy a global risk
management system

Reinforce the risk
management structural
base

Strengthen measures
to counter significant
Group risks

Step up countermeasuresagainst information leaks
Promote global fair trade
Roll out global business
continuity measures

Ensure thoroughcompliance and expand
application

Create a complaints
management system
related to fair trade
Expand the scope of ourcompliance policy

Reinforce the global
compliance structure

Draft and implement
improvement measures
based on evaluations byexternal specialists

22

Human rights
Cultivation and/Labor practices promotion ofdiverse humanresources

Environment

Promote an active role
for women

Increase the ratio of
female recruits
Conduct careeradvancement training for
women

Recruit diverse global
human resources

Increase hiring ratio of
non-Japanese humanresources

Promote global talentmanagement

Implement programs tocultivate global humanresources

Maintenance or
Increase employee
improvement of an satisfaction
attractive andpleasant working
environment

Promote awarenessactivities with the aim ofutilizing various programs

Environmental
impact reduction of
products, services
and operational
activities

Promoteenvironmentallyfriendly products andservices(Including achieving
the Group target values
outlined in Sysmex
Eco-Vision 2020)

Reduce greenhouse gas
emissions of products
and services

Reduce theenvironmental impact
of business activities(Including achieving
the Group target values
outlined in Sysmex
Eco-Vision 2020)

Curtail use of energy,
waste and use of water
resources

Fair operating
practices

Promotion of CSR
procurement

Continue to promote
CSR procurement

Select new business
partners based on new
procurement policies andpromote awarenessamong existing business
partners

Consumerissues

Improvement ofcustomersatisfaction

Create a global
customer satisfaction
evaluation system

Conduct a global
customer satisfaction
surveyConduct corporate
citizenship activities
based on the Policy on
Corporate Citizenship
Activities andPhilanthropy

Continue to conduct
corporate citizenshipactivities
Increase the number of
employee volunteers bypromoting a social
contribution points
programCommunity
Promotion of
involvement and corporate
development
citizenshipactivities

23

Main Dialogue Achievements in Fiscal 2014

Dialogue with Customers
Conducted survey on degree of customer satisfaction ineach region (Sysmex Corporation and overseas Group
companies in each region)
Held scientific seminars in each region (Sysmex
Corporation and overseas Group companies in eachregion)Ongoing customer training program incorporating
customer feedback in each region (Sysmex Corporationand overseas Group companies in each region)

37th Sysmex Scientific Seminar

Held user group meetings to communicate accurate
product knowledge (Sysmex Thailand)

Dialogue with Employees
Investigated desire concerning career design, includinginterest in working overseas or changing jobs through avoluntary reporting given to all employees, with results
made use of in HR rotation (Sysmex Corporation)
Opened the Global Communication Center in the city of
Ashiya, in Japan, as a place for people of diverse culturesand values to congregate, break from everyday
operations and roles, and engage in discussion and the
expansion of networks (Sysmex Corporation)
Held briefings and opinion exchange meetings related tothe human resource development system at various
offices (Sysmex Corporation)

Opinion exchange meeting held at
the Tokyo Office

Conducted collective bargaining with the labor union andheld labor–management meetings on topics such as
workplace environment improvement (Sysmex
Corporation)
Held dialogues with labor unions (Sysmex Vietnam, Jinan
Sysmex, Sysmex Wuxi)

Dialogues with Business Partners
Held procurement policy briefings for business partners inJapan to enhance their understanding of CSR
procurement (Sysmex Corporation)
Held briefings for all assemblers, sharing important
information on managing process changes on medical
instrument unit assemblies (Sysmex Medica)
Conducted meetings with distributors to explain theSysmex business plan, among other matters (Sysmex
RUS)
Held a business partner meeting (Sysmex Asia Pacific)

24

Procurement policy briefingDialogue with Shareholders and Investors
Held the 47th Ordinary General Meeting of Shareholders(Sysmex Corporation)
Held the 12th Technology Presentation for institutional
investors and analysts (Sysmex Corporation)
Held informational meetings for individual investors(Sysmex Corporation)
Conducted two company tours during the year for
shareholders (Sysmex Corporation)

Company tour for shareholders

Dialogue with Members of the Local Community
Held event for local community interaction at R&D core
Technopark (Sysmex Corporation)
Participated in math and science education-focused "7thScience Fair in Hyogo" event for high school students(Sysmex Corporation)
Participated in the "Aim High Urban Mentoring Initiative"
conducted by a U.S. NPO and advised local high school
students (Sysmex America)
Local community interaction
event at Technopark

25

Summary of CSR Data
Customers
Category

Fiscal
2012

Fiscal
2013

Fiscal2014

Related
ArticlesPeople undergoing training at the Sysmex
Corporation Monozukuri Training Center(cumulative)

669

709

1,000

P13

Instruments registered with the on-line
quality control service (cumulative,
worldwide)

23,82928,72331,859P60

Inquiries received by the Sysmex
Corporation Customer Support Center

95,612

97,08595,767

P58

86.7

85.3

91.6

P63

9.0

9.1

9.1

P15

8.95

9.18

P15

Customer satisfaction rating with theSysmex Corporation Customer Support
Center* (%)* Research by Sysmex Corporation.

Customer satisfaction rating in the UnitedStates* (out of 10 possible points)* Research by Sysmex America

5.42*
Customer satisfaction rating in the UnitedStates* (out of 10 possible points)* 6 points
represented
full marks inthis fiscal
year only.

* Research by IMV ServiceTrack.

Employees (All figures are results for Sysmex Corporation.)
Category
Total
New-graduate
recruits

46

68

61

Of which, men

28

43

40

Of which,
women

18

25

21

Of which,
non-Japanese

5

7

12

33

42

69

Of which, men

29

31

47

Of which,
women

4

11

22

Of which,
non-Japanese

2

1

1

Total
Mid-career
recruits

Fiscal 2012 Fiscal 2013 Fiscal 2014

26

Related
ArticlesP75

P75

Turnover** Regular employees
only, excluding people
who have reached the
mandatory retirement
age

Employment ofpeople withdisabilities

Turnover(people)40

Turnover (%)

3.2

1.4

1.96

Number ofpeople49

47

47

Percentage

2.08

1.94

1.86

9

16

20

8

16

20

89

100

100

9

3

5

1

0

1

11

0

20

Contract
employees

12

6

15

Temporaryemployees

1

3

4

Total

13

9

19

Work-related
deaths000Work-related
injuries3

2

3

Frequency ofwork-related
injuries

0.63

0.41

0.58

Applicants
Reemployment ofPeopleworkers after the
reemployedmandatory
Percentage
retirement
reemployment
New registrants
Reemployment of
personnel leaving Number
for reasons ofreemployedchildcare orPercentage
nursing carereemployment

Promotion toregularemployees

Industrial
accidents

People taking
pre-andpost-maternity
leave

42
P78

P76

P76

P84

P78

P89

Severity ofwork-related
injuries

0.01

0.00

0.00

Total work days
lost

63

2

20

Total actual
number ofworking hours

Paid leave

29

4,731,407.25 4,895,594.75 5,129,491.25

Days granted

43,60045,34847,000Days taken

22,727

22,335.5

22,255.5

Percentage ofdays taken

52.1

49.3

47.4

Women

23

29

48

Men

0

0

0

P84

P84

27

People taking
childcare leave
People taking
shorter work
hours forchildcare
People taking
nursing care
leave
Percentage of
people returning
after childcare
leave

Women

25

31

41

Men

0

1

3

Women

42

51

50

P84

P84
Men

0

0

0

Women

0

2

1

Men

0

1

0

Women

100

100

100

P84

P85
-

100

100

People taking accumulated paid
leave

33

62

26

P84

People on flex-time arrangement

1271

1618

1678

P84

Total during
year

40

33

34

At fiscal
year-end

27

28

23

Training
expenditure per
employee (yen)100,000

122,396

157,789

Training time
per employee(hours)

10

10.9

28.2

Number oftraining
programs

13

12

22

15

29

124

3

6

3

Children in
in-house daycare
centerTraining results** From fiscal 2013,
excludes temporary
employees, part-time
employees andexecutives

Men

Total
Number of interns
Of which,
accepted
non-Japanese

P84

P14

P101

Note: Some figures have been revised from ones disclosed before, owing to changes indefinition.
Fiscal
2013

Fiscal2014

Sysmex Corporation (%)

4.8

5.3

Overall Group (%)

10.6

11.6

Category
Female managers (%)(Director level or above)28

Related
ArticlesP76

Category

Fiscal 2014
Japan

Americas
Percentage of men and
EMEA*2
women in the Group*1
China
Asia
Pacific

Men

63%

Women

37%

Men

65%

Women

35%

Men

58%

Women

42%

Men

61%

Women

39%

Men

61%

Women

39%

Regular employees, employees on
loan, and fixed-term (part-time)
employees
Regular employees, employees on
loan and executives
Regular employees, employees on
loan, fixed-term employees andexecutives
Regular employees, employees on
loan and executives
Regular employees, employees on
loan, fixed-term employees andexecutives*1 Excluding HYPHEN BioMed, Sysmex Inostics and Sysmex Partec*2 Europe, the Middle East and Africa

Corporate Citizenship Activities
Category

Fiscal 2014

Expenditures for corporate citizenship activities(Sysmex Corporation, yen)

Approximately 324,954,000

Category

Fiscal 2014

Related
ArticlesDonations to the World Cancer Research
Fund (Group companies in EMEA* , euros)

Approximately 241,700

P12* Europe, the Middle East and Africa

Category
Donations to cancer-relatedorganizations (Sysmex America,
US dollars)

Fiscal 2012

Fiscal 2013

Fiscal 2014

Approximately Approximately Approximately
78,800100,000
79,000Related
ArticlesP15

Environmental Conservation Activities (Related articles indicate the scope ofrange of calculation.)
Category

Fiscal
2012

Fiscal
2013

Fiscal2014

Related
ArticlesCO2 emissions from logistics (t-C02/1000
ton-km)

0.12

0.15

0.14

P112

Greenhouse gas emissions at businessoffices Unit of sales* (t-CO2/￥100 million)

8.63

7.98

7.28

P113

Business office recycling rate (%)

89.5

88.9

90.3

P114

Water use at reagent factories Units (1,000
m3/1,000 boxes

20.8

22.0

21.4

P115

* Owing to revisions in the scope of data, greenhouse gas emissions per unit of sales have been revised
from figures reported for the preceding fiscal year.
29Inclusion in Socially Responsible Investment (SRI) Indexes

Selection for Representative SRI Indexes
Socially responsible investment (SRI), assessing and screening corporate performance indimensions like environment and social fairness as well as economy for a sustainable
society, is drawing attention.
Sysmex Corporation has been selected as a member of the FTSE4Good Index*1, a leading
SRI index, since fiscal 2008. We have also been selected as a member of the Asia PacificIndex of the Dow Jones Sustainability Indexes*2 since fiscal 2012. In addition, since fiscal
2011 we have been designated for Ethibel Excellence*3 by Forum Ethibel, a Belgian SRI
evaluation organization. Furthermore, in fiscal 2014 we were included as an Ethibel
Pioneer*3 , a distinction bestowed on particularly excellent companies.
*1 FTSE4Good Index: SRI index developed and managed by the U.K. FTSE Group, a joint venture between
the Financial Times newspaper and the London Stock Exchange.
*2 Dow Jones Sustainability Indexes: SRI index developed through collaboration between S&P Dow Jones
Indexes of the United States and Robeco SAM, a Swiss research specialist in the area of socially
responsible investment.
*3 Ethibel Pioneer, Ethibel Excellence: Select stocks chosen for demonstrated performance above a certain
level in terms of CSR issues related to observance of human rights and environmental contributions.

30

Recognition and Commendation by Third Parties
2015
March

Received the Award for Excellence at the 18th Environmental Communication Awards for
the Sysmex Sustainability Report 2014

March

Ranked first in the Toyo Keizai ranking of the top 300 "Excellent Companies for New
Employees"

March

Selected for the "Companies That Care Honor Roll 2015* "* Companies That Care Honor Roll: A corporate ranking that designates companies that
contribute to the welfare of employees, their families and local community, based on asurvey conducted by the Center for Companies That Care, an NPO.

2014
DecemberReceived an overall rating of 73rd of 538 companies in the NICES ranking by Nikkei
Inc.

October

Received the "Minister of Education, Culture, Sports, Science and Technology
Encouragement Prize for Invention" for one invention and "The Encouragement
Prize for Invention" for three other inventions

OctoberRanked 30th of 439 Companies in the overall Nikkei ranking of "Companies that
Motivate People"

October

Selected by the Securities Analysts Association of Japan for "Excellence in
Disclosure to Individual Investors"

AugustCC-1001 automated hematology analyzer certified under the "3rd Heritage Programof Legacy Analytical Instruments/Scientific Instruments"

July

Received an award from the city of Kobe for "efforts to promote citizens’ health andcontribute to an improved awareness of nutrition"

June

Received Fiscal 2014 Hyogo Prefecture Invention Awards for the "Direct Nucleic Acid
Amplification Method" and the "Liquid Suction Supervision Method"

April

Received the Fiscal 2014 Commendation for Science and Technology (Development
Category) by the Minister of Education, Culture, Sports, Science and Technology for
the Development of a Method for Analyzing Formed Elements in Urine

April

Baddhi Factory wins local environmental award (Sysmex India)

March

Selected for the Companies That Care Honor Roll 2014 (Sysmex America)

March

Ranked 50 out of 100 companies as a "Great Place to Work" (Sysmex Europe)

2013
DecemberReceived the German Design Award (sponsored by the German Design Council) for
the XN-2000 automated hematology analyzer and XN reagents

NovemberReceived the "Chairman's Prize from the Hyogo Institute of Invention andInnovation" for one invention and "The Encouragement Prize for Invention" forthree other inventions at the Kinki Local Commendation for Invention

November

Selected in the Top Workplaces survey of regional organizations by the Chicago
Tribune (Sysmex America)

October

Selected for excellence in disclosure to individual investors at the Awards for
Excellence in Corporate Disclosure, sponsored by the Securities Analysts Associationof Japan

October

Received the Good Design Award, sponsored by the Japan Institute of Design
Promotion, for the ASTRIM FIT health monitoring analyzer

July

Our online network support service, Sysmex Network Communication Systems(SNCS), received a Grand Prix at the IT Japan Award 2013, sponsored by Nikkei
Computer (published by Nikkei Business Publications, Inc.)

31

June

Received the Hyogo Prefecture Invention Award for Specimen Analyzers and White
Blood Cell Classification and Counting Method/White Blood Cell Classification andCounting Kit

April

Received the Fiscal 2013 Commendation for Science and Technology(Development
Category) by the Minister of Education, Culture, Sports, Science and Technology, fordevelopment of the method of classifying and counting particles by automatedhematology analyzer

March

Selected to the Companies That Care Honor Roll 2013 (Sysmex America)

January

Received Germany’s iF Product Design Award for the XN-2000 automatedhematology analyzer and XN reagents2012
NovemberReceived "The Encouragement Prize of the President of Japan Patent Attorneys
Association" for one invention, and "The Encouragement Prize for Invention" forthree inventions at the Kinki Local Commendation for Invention Awards

October

Received commendation at the Securities Analysts Association of Japan Corporate
Disclosure Study Group Awards

October

Selected one of the 2012 Best Places to Work in Healthcare in recognition of its highlevel of employee satisfaction （Sysmex America）* Best Places to Work in Healthcare: Ranking of companies selected and recognized by
employees from the healthcare industry as good places to work. Based on research byindustry publication Modern Healthcare

AugustSysmex 2011 Annual Report awarded a bronze medal in the Healthcare Technology
category of the 26th Annual International ARC Awards (held by MerComm, Inc., of
the United States)

AugustReceived Healthcare’s Hottest Award* in recognition of rapid sales growth (Sysmex
America)* Healthcare’s Hottest Award: Healthcare companies with continuous growth that havegenerated a minimum of $20 million in annual revenue in most recent fiscal year are
selected based on research by industry publication Modern Healthcare

May

Received the award for contribution to industrial development of Hyogo inrecognition of initiatives to the Kobe Chamber of Commerce and contributions
invigorating regional industry
Received Hyogo Prefecture Invention Award for "Hematological analyzer samplingprobe cleaning composition and method of using"and "Automated hematology slide
preparation unit"

March

Selected for Companies That Care Honor Roll 2012 (Sysmex America)

March

Selected as among Germany’s Best Employers in 2012* in recognition of its highlevel of employee satisfaction (Sysmex Europe)* An employee satisfaction survey of over 400 companies conducted by a German
researcher

February

Received 2012 Achievement in Customer Excellence Award* for high-quality service(Sysmex America）* A program recognizes outstanding achievement in customer, employee and partner
satisfaction by MarketTools, USA.

January

Selected for inclusion in the 2012 Global 100 (100 most sustainable companies in
the world)

2011
December

Selected one of the 2011 Best Places to Work in Healthcare(Sysmex America)

NovemberReceived the Good Design Gold Award 2011 for its highly rated in vitro diagnostic
system employing the Sysmex’s new Silent Design®

AugustReceived Technology Award from the Japan Society of Clinical Chemistry for ‘A
Novel CK-MB Activity Assay Kit "L-System CK-MB" Using Anti-human Mitochondrial
CK Antibodies'

32

May

Received the "Invention Award" in the 2011 National Commendation for Invention,sponsored by the Japan Institute of Invention and Innovation, for technologies
related to its white blood cell classification and counting method and associatedreagents

March

Won the Hyogo Governor's Award in the 3rd Hyogo Manufacturing Technology
AwardsMarch

Selected for Companies That Care Honor Roll 2011 (Sysmex America)

February

Sysmex Technopark R&D Tower received CASBEE Architectural Award (1st City of
Kobe Design Award, CASBEE Category Architectural Award)

January

Received Nikkei Annual Report Award 2010 (presented by Nikkei Inc.) for theattractive layout, design and overall balance of our annual report

2010
NovemberReceived the Director-General of the Patent Office Encouragement Award (1 award)
and Invention Encouragement Award (3 awards) in the Kansai Region
Commendation for Invention
The OSNA method received the "Best Ideas in Healthcare 2010*" award (hosted by
Diario Médico) in Spain* From 2002, Diario Médico, the leading medical newspaper publisher in Spain, has
selected the best initiatives, products or projects leading to significant improvements inhealthcare. In 2010, out of 506 ideas, Sysmex's OSNA method received the "Best Ideas
in Healthcare 2010" award in the research and pharmacology field

October

Received the Minister of Economy, Trade and Industry Award in the Intellectual
Property Achievement Award
Received the Kobe Environmental Achievement Award

AugustSysmex Annual Report 2009 won the Gold Award in the healthcare category of the2009 Vision Award

July

Honored with the Invention Award in the National Commendation for Invention

April

Received the Hyogo Prefectural Invention Award

March
February

Selected for Companies That Care Honor Roll 2010 (Sysmex America)
Our initiative to "turn food waste into compost" recognized as a "Hyogo Biomass
eco Model*" (organized by the Hyogo Prefectural Government)* Recognizing pioneering initiatives in the efficient utilization of biomass in Hyogo
Prefecture

2009
October

Our R&D hub, Technopark, received the Encouragement Award of the Urban GreenSpace Award* (organized by the Urban Green Space Development Foundation)* Commends companies that have achieved outstanding results in improving theenvironment by using trees, flowers, and other "greenery," thus contributing to thecreation of lush urban neighborhoods

September

Our R&D hub, Technopark, received the Promotion Award of the Best of New
Offices award** Commends offices that incorporate originality and ingenuity, are comfortable andfunctional, stimulate sensitivity, and enhance creativity

September
April

Received Honorary Award from the Mongolian Health Minister in recognition of ourinvestigation and support for external quality control
Selected as one of Daiwa Investor Relations’ "580 companies that maintainoutstanding Internet IR Site" for our IR siteMarch

Our IR site received the Gómez IR Site Ranking Excellent Award

March

Selected for Companies That Care Honor Roll 2009 (Sysmex America)

33

2008
December

Our R&D hub, Technopark, assessed as the first-ever CASBEE* class S (highest
class) facility in Kobe City
* Comprehensive Assessment System for Built Environment Efficiency: Assesses buildings
in terms of the global environment, earthquake performance, barrier-free functions,landscape, etc.

November

October
March

Received one "Commissioner of the Japan Patent Office Invention Incentive Award"
and three "Invention Incentive Awards" in the 2008 Kinki Local Commendation forInvention (organized by the Japan Institute of Invention and Innovation)
Received the "Fiscal 2008 Kobe Men & Women Iki-iki Business Establishment
Award" (organized by the Kobe City Government)
Our Sustainability Report 2007 received the Encouragement Award given as a partof the Environmental Communication Awards (organized by the Ministry of theEnvironment of Japan)

2007
December

The Sysmex Annual Report received the Special Award in the Nikkei Annual ReportAwards 2007

NovemberReceived a "Shibucho-award (Award from the Branch Director)" and two "Invention
Incentive Awards" in the 2007 Kinki Local Commendation for Invention (organizedby the Japan Institute of Invention and Innovation)

April

Our "reagent technology for measuring immature cells in the blood" received the2007 Minister of Education, Culture, Sports, Science and Technology Award(organized by the Ministry of Education, Culture, Sports, Science and Technology ofJapan)

34

Corporate Governance System

Overview of the Corporate Governance System
Sysmex has adopted the corporate auditor system since April, 2005. The current
management organization consists of nine members of the Managing Board (one of whom isan outside member of the Managing Board), four corporate auditors (including two outside
auditors), and 20 executive officers (seven of whom are also members of the Managing
Board), and the Company has adopted the executive officer system to increase the speed ofdecision making in the conduct of business and respond quickly to changes in the businessenvironment.
Corporate Governance Structure

The Managing Board consists of nine members. The board meets regularly once a month todeliberate on important management issues and convenes extraordinary meetings asnecessary.
The Global Strategy Committee consists of the chairman and CEO and senior executive
officers. As a rule, this committee meets once a month to deliberate on the Group’s
management direction and important strategic issues.
The Steering Committee consists of the chairman and CEO and senior executive officers.
The committee meets once a month, in principle, serving as a consultative body to thechairman and CEO to deliberate on important matters concerning the Group’s business.
In addition, the Group Management Reporting Committee consists of the chairman and CEO
and senior executive officers, directors of overseas regional headquarters, people in chargeof domestic affiliated companies and division managers. The committee meets once aquarter, in principle, reporting important matters concerning the Group’s operations.
Furthermore, the Operating Committee consists of managers of divisions. The committee
meets once a month to find solutions to cross-functional problems.
35

Reason for Adopting a Corporate Governance System
Sysmex positions reinforcing corporate governance as an important management issue. We
have adopted the current system in the aim of enhancing corporate soundness andtransparency and boosting management speed and efficiency.

Development Status of the Internal Control System
On April 22, 2015, the Managing Board resolved to have systems in place to ensure that theexecution of duties by directors is compliant with the law and the Articles of Incorporationand systems required to be in accordance with Ministry of Justice ordinances for ensuring
the appropriateness of operations for joint-stock companies. The content of this resolution isprovided below.
System for Ensuring the Execution of Duties by Members of the Managing Board
and Employees Is Compliant with the Law and the Articles of Incorporation
Sysmex and its subsidiaries (the "Sysmex Group") defines compliance as "the conduct ofopen and aboveboard business activities on the basis of observance of laws andregulations and high ethical standards" and maintains a system to ensure compliance as
described below.
Recognizing that compliance countermeasures are the first and most important way tomaintain society’s trust and counter risk, the Sysmex Group operates a groupwide risk
management system, under which the Compliance Committee is established as theumbrella organization for compliance. The Sysmex Group has formulated a Global
Compliance Code that applies to employees and members of the Managing Board andrigorously ensures compliance through education and training. The Sysmex Group
promotes the rapid detection and correction of violations of the law or the Articles ofIncorporation by means of an internal compliance-related reporting system, and conducts
audits of the compliance structure by means of the Internal Audit Office.
System for the Retention and Management of Information Related to the
Execution of Duties by Members of the Managing Board
The Sysmex Group has formulated Global Document Management Regulations. In
accordance with these regulations, the Group appropriately retains and manages minutesof Managing Board and other important meetings, as well as other information relating to
the execution of duties by members of the Managing Board, and maintains theinformation in a state available for inspection as necessary.
Regulations Concerning the Management of Risk and Other Systems
To maintain a structure concerning risk management, the entire Sysmex Group complies
with risk management regulations established by the Risk Management Committee forthe integrated management of risk throughout the Group and strives to mitigate risk.
The Risk Management Committee endeavors to discover foreseeable risks, select themost important of these risks, clarify the sections responsible for coping with risks,establish countermeasures and confirm the implementation status of thesecountermeasures.
Systems to Ensure That Members of the Managing Board Execute Their Duties
Efficiently
The Sysmex Group has positioned the Managing Board as the institution to makeimportant management decisions and supervise the execution of duties. The Company
has introduced the executive officer system to be capable of making swifter operating
decisions and reinforce management functions in order to respond quickly to changes inthe business environment.
The Sysmex Group clarifies decision-making procedures and ensures efficient business
operations based on organization regulations, scope of authority regulations, regulations
concerning the management of affiliated companies, and others. In addition, the Group
formulates mid-term plans and annual management plans, periodically confirms the
progress made with those plans and takes any necessary measures.

36Systems to Ensure the Appropriateness of Business Activities in the Corporate
Group, Comprising the Company and Its Subsidiaries
Sysmex ensures compliance throughout the Sysmex Group in accordance with its Global
Compliance Code, which applies to members of the Managing Board and employees
throughout the Sysmex Group. In conformance with regulations established with respect
to risk management, Sysmex maintains a groupwide risk management system. Internal
audit offices are in place at subsidiaries, and Sysmex’s Internal Audit Office conducts
audits of the Sysmex Group as a whole from a regional and companywide perspective.
Based on its regulations relating to the management of affiliated companies, Sysmex
respects the autonomy of the management of subsidiaries and other affiliated companies
and ensures the appropriateness of business activities throughout the Sysmex Group bysuch means as periodic reporting on the details of their business activities and advancediscussion concerning important matters.
Assignment of Employees to Assist Corporate Auditors
Employees in the Internal Audit Office assist Sysmex’s corporate auditors with theirauditing activities, as necessary.
At the request of the corporate auditors, Sysmex provides full-time staff to assist theBoard of Auditors. To ensure that these assistants report exclusively to the corporate
auditors, members of the Managing Board discuss with the Board of Auditors in advance
personnel matters related to these assistants (such as appointments, transfers anddisciplinary actions).
Policy on Handling Audit Expenses
Sysmex has in place a budget corresponding to the annual audit plan in order to defray
the expenses required for the execution of duties by the corporate auditors. Procedures
are handled appropriately in the event additional expenses are required for the executionof duties by the corporate auditors.
Systems Related to Reporting to the Corporate Auditors and Other Systems for
Ensuring Effective and Efficient Auditing by the Corporate Auditors
If a member of the Managing Board or employee of the Group discovers a violation of thelaw or the Articles of Incorporation or a material fact that poses risk of causing significant
damage to the Sysmex Group, that fact is promptly reported to the corporate auditor
according to the prescribed regulations and procedures. The corporate auditors also
attend Managing Board and other important meetings, read important documents suchas approval requests, and request explanations from members of the Managing Boardand employees of the Sysmex Group as necessary.
Sysmex prohibits dismissal or any other disadvantageous treatment to members of theManaging Board and employees of the Sysmex Group who report information as outlined
above.

Status of Internal Audits and Audits by Corporate Auditors
The Internal Audit Office, composed of 10 members, confirms and evaluates internal
controls and the status of management and execution from the perspective of sound Groupdevelopment. The office submits reports based on these results and promotes operational
appropriateness through its improvements, advice and proposals. In these ways, the officealso performs internal audits to contribute to the sound management of the Group.
The Board of Auditors consists of four corporate auditors, two of whom are outside auditors.
The corporate auditors attend the Managing Board and Steering Committee meetings andmaintain systems for appropriately supervising the conduct of business on the part of themembers of the Managing Board. The corporate auditors also maintain close
communications with the Internal Audit Office, exchanging information and opinions asnecessary, and confirm and evaluate the appropriateness of business execution. The Board
of Auditors will continue to enhance management soundness by engaging in appropriate
supervision of the execution of business as stipulated by law.
The Board of Auditors works closely with the accounting auditors on the audit plans report(annual) and the audit results reports (annual), exchanging information and opinions asnecessary, such as when conducting internal control audits related to financial reporting.
The Company has contracted with Deloitte Touche Tohmatsu LLC to perform a certified
public accountants audit. In addition to conducting an audit of the entire Sysmex Group, the37Company maintains an environment that makes it possible to rapidly cope with changes in
the accounting system. The Company has contracts in place with several law offices andmaintains a structure to solicit and obtain advice on important matters as necessary.

Outside Members of the Managing Board and Outside Corporate
Auditors
The Company has one outside member of the Managing Board and two outside corporate
auditors.
Susumu Nishiura was appointed as an outside director in the hope that he would execute his
duties as an outside director adequately utilizing his abundant experiences and deep insightin corporate management. Mr. Nishiura is formerly of TOA Corporation, a Sysmex business
partner. He stepped down as director of TOA in June 2010. TOA has no special relationshipwith Sysmex. As we judge there to be no concern about any conflict interest with Mr.
Nishiura and the general shareholders, we have notified the Tokyo Stock Exchange that he is
an independent executive. No transactional or other interest-based relationships exist
between Mr. Nishiura and Sysmex.
Kuniaki Maenaka was appointed as an outside corporate auditor in the hope that he would
make use of his accounting and financial expertise as a certified public accountant tocontribute to management soundness and transparency. Mr. Maenaka is formerly of Deloitte
Touche Tohmatsu Limited, with which Sysmex has in place an agreement regarding public
accountancy audits. However, he stepped down from Deloitte Touche Tohmatsu in
September 2010, and during his employment there he had no connection with accounting
audits of Sysmex. As of March 31, 2015, Mr. Maenaka owned 4,000 shares of Sysmex stock,which we do not judge to be material.
Koichi Onishi was appointed as an outside corporate auditor in the hope that he would audit
the Company adequately utilizing his abundant experience and deep insight as a corporate
manager. Mr. Onishi is formerly of Nippon Koshuha Steel Co., Ltd., and no special
relationship exists between that company and Sysmex.
As we judge there to be no concern about any conflict interest between the two outside
corporate auditors and the general shareholders, we have notified the Tokyo Stock Exchangethat they are independent executives. Furthermore, no transactional or other interest-based
relationships exist between these outside corporate auditors and Sysmex.
The outside members of the Managing Board and outside corporate auditors attend
meetings of the Managing Board and the Board of Auditors, and they are provided withaccess to various internal databases that enable them to obtain necessary information. In
addition to exchanging opinions at meetings of the Board of Auditors, systems are in place
to exchange information with the outside corporate auditors as necessary, providing themwith adequate information for conducting effective audits.
Although we have not established clear standards and policies with regard to independence
in selecting outside members of the Managing Board and outside corporate auditors, during
the selection process we refer to the Tokyo Stock Exchange’s "Standards for Determining
the Independence of Independent Executives." We also consider each candidate’s work
history and relationship with Sysmex to determine that they are sufficiently independent todischarge the duties of independent executives from a standpoint of independence from
Sysmex’s management team.

38

Messages from an Outside Members of the Managing Board andOutside Corporate Auditors

Steering Committee meetings are a time of lively, forwardlooking discussion, and the Managing Board takes due
account of the results of Steering Committee considerations
in making its decisions. During discussions, I consider it
import to ensure that my viewpoint incorporates increasing
sales, securing profits and ensuring the appropriateness ofinvestments in growth for enhancing corporate value.

SusumuNishiura
Member of theManaging Board(Outside)

The positioning of our long-term management targets andthe content of the mid-term management plan that went into
effect in the fiscal year ending March 31, 2016, are aimed atadditional business expansion. Achieving these goals may
require large-scale investments in growth, but confirming theeffects of these investments and their profitability are also an
important part of my assignment. Also, in recent years
Sysmex has globalized and rapidly expanded its fields ofoperation. Internal rules need to be renewed and structures
reset to take these developments into account. As an outside
member of the Managing Board, I intend to concentratespecifically on the internal control system, particularlycompliance, as well as the risk management system.

My role as an outside corporate auditor is to look objectively
at the conclusions handed down through the management
decision-making process from a third-party, shareholderoriented perspective. At the same time, in filling the role I
believe I invigorate the internal corporate culture andmanagement sentiment in a novel way.

Kuniaki
MaenakaCorporate Auditor(Outside)

I aim to speak and act in ways that reflect my work
experience, which is entirely as an accountant working in theoverseas business arena, by concentrating in particular on
how overseas markets and overseas stakeholders view ourmanagement, whether our actions match their expectations
and whether we are properly fulfilling our social
responsibilities worldwide.
I intend to continue conducting my tasks from the viewpointof whether management is operating in an accountablemanner in the scrutinizing eyes of overseas and domestic
stakeholders and whether management is contributing toincreases in corporate value. Also, I will work to ensure thatthe risk that tends to occur at quantitative and qualitative
development stages is being appropriately understood andpreemptively addressed and remain alert to any sign ofproblems relating to internal control.

39This was the first year of my appointment, and I spent asignificant amount of time getting the lay of the land. I
visited the Company’s domestic branches, sales offices andGroup companies, making a real effort to put aside any
opinions I might have formed and consider the true state ofthings where they occur and look at conditions in an
objective light.

Koichi Onishi
Corporate Auditor(Outside)

At meetings of the Steering Committee and Managing Board,
I make it a point to ask questions from a proactive
governance- and compliance-oriented perspective; this may
simply be a matter of course for people within the Company.
As one might expect in a rapidly growing company, there is apervading and palpable sense of energy among theemployees. I believe it may be necessary for the front line ofbusiness to ensure that various regulations and further
measures are in place. Going forward, I intend to continue
viewing the Company from an outsider’s perspective, while
doing my utmost to enhance corporate value via thoroughcorporate governance and compliance.

40Compensation Paid to the Members of the Board and Corporate
Auditors
Total Executive Compensation by Executive Category, Breakdown of Total
Compensation by Category, and Number of Executives Receiving Compensation
Total
Compensation breakdown, by category
executive(Millions of yen)
Executive
Number ofcompensation
category
Basic
Stock
Retirement executives(Millions ofBonusescompensation options
benefitsyen)
Membersof theManaging
Board(excluding
outsidemembers)

799

236

125

437

-

8

Corporate
auditors(excluding
outsidecorporate
auditors)

36

36

-

-

-

2

Outsideexecutives

11

11

-

-

-

4

Total Compensation, including People Awarded Compensation in Excess of ￥100
Million
Total
executivecompensation
Retirement
Bonuses(Millionsbenefitsof yen)Compensation breakdown, by category(Millions of yen)
Name

Executive Company
category category

Members
Hisashiof theSysmexIetsugu Managing Corporation
Board

Basic
compensation

Stock
options

59

43

191

-

293

Policies and Methods of Determining Executive Compensation
Amounts and Calculation Methods
Sysmex determines executive compensation amounts and calculation methods by making aclear link between operating performance and responsibility for achievement. Compensation
for members of the Managing Board divides broadly into fixed and variable portions. Fixedcompensation is determined on the basis of a member’s position, while variable
compensation varies depending on performance. Compensation for corporate auditors
comprises only a fixed portion. Compensation amounts are discussed and determined by theManaging Board following deliberation by the Compensation Committee.

41Compliance Structure

Pursuing Open and Aboveboard Business Activities
Based on our Group philosophy, the "Sysmex Way," we define our view of compliance as"conducting business activities not only in compliance with applicable laws and regulations,but also based on fairness and high ethical standards." In accordance with this definition, we
have established a Global Compliance Code, in which particularly important conformancerules and behavioral guidelines for all Group executives and employees to abide by arecompiled. We take advantage of various training opportunities to enhance awareness of thecode, as part of our efforts to ensure that our business activities are compliant with laws
and regulations in each country and region in which we operate.
We revised the compliance structure in October 2013, establishing the Compliance
Committee independently from the Risk Management Committee. In addition, we areencouraging compliance in a manner that reinforces the relationship between the Group
Compliance Officer and the officer of Group companies. In May 2014, we revised our global
compliance code, adding text to describe our thoughts on ethics in relation to research anddevelopment, prevention of bribery, adherence to international guidelines such as the
Universal Declaration on Human Rights, as well as research and development. We also set
forth a bylaw for revising this code once every two years, in principle, to respond to changes
in our internal and external environments.
We also formulated the Sysmex Promotion Code to spell out in greater detail and more
specifically two elements of the Global Compliance Code: "2．To Promote Fair Dealing andFree Competition" and "9．Distinction between Public and Private Matters and No Conflicts ofInterest," and we are conducting awareness activities in this regard.
Compliance System

42Sysmex Global Compliance Code
1. To Ensure Safety of Our Products and Services to Customers
In all of our corporate activities, we will make it a matter of priority to provide
our customers with safety and security.
2. To Promote Fair Dealing and Free Competition
We will deal with our customers and business partners in a just and fair manner
and will conduct transactions under appropriate conditions. As regards ourrelations with other companies in the same line of business, we will not illegally,dishonestly or unreasonably restrict their business, nor will we engage in the
public defamation of those companies.
3. Fair and Proper Information Disclosure and Exercise of Complete
Information Control
Our corporate information, such as our group’s financial conditions and businessactivities, will be disclosed in a fair, prompt, correct and clear manner inaccordance with applicable laws and regulations and we will exercise strict
control over confidential information collected through our business activities so
as not to cause any infringement to the rights of third parties.
4. . Implementation of Appropriate Research and Development Activities
When carrying out our research and development, we will protect the dignity
and human rights of the trial subjects and their privacy in the research of genes
and other matters, and will comply with applicable laws and regulations andcarry out our research activities in accordance with high ethical standards.
5. To Respect Intellectual Property
We respect both the rights of our own company’s intellectual properties and theintellectual properties of others. We will not unlawfully acquire or utilize any
confidential business information or the proprietary assets of others.
6. To Maintain International Peace and Safety
We will comply with export- and import-related laws and regulations, and will
not be engaged in any transaction likely to impede maintenance of international
peace and safety.
7. To Conduct Proper Accounting and Appropriate Tax Payments
We will always apply the appropriate accounting treatment and recognize tax
obligations set forth in applicable tax laws and accounting regulations andstandards.
8. To Respect Human Rights and to Improve Occupational Health and
SafetyWe will support the Universal Declaration of Human Rights and Core Labour
Standards, and respect the fundamental human rights of each person and will
not infringe thereon by such acts as discrimination, harassment, etc. We will
also comply with applicable laws and regulations, endeavor to improve
occupational health and safety, and will not force any unfair labor practice on
the personnel of the company.
9. Distinction between Public and Private Matters and No Conflicts ofInterest
We will not attempt to gain any personal profit in performance of our duties,
and will not make any unauthorized use of our group’s assets, goods andinformation, nor will we perform such personal acts that may cause harm to ourgroup’s business activities or reputation.

43

10. To Maintain Sound Relationships with Society
We will comply with applicable laws and regulations related to anti-bribery
statutes and comply strictly with applicable laws when making political
donations, if allowed under local law. We will not be intimidated by antisocial
activities, behavior and groups, and will never maintain any relationship withthem.
11. To Preserve the Global Environment
We will comply with environment-related laws and regulations, etc. and pay
attention to the environment throughout our business activities based oninternational standards, etc. for the environment in an endeavor to preserveand improve the global environment.
Revised May 2014

Third-Party Evaluations of Group Structure to Promote
Compliance and Its Operational Status
We confirm the appropriateness of our compliance-related initiatives and regulations withrespect to social conditions and various laws and regulations, revising our content asneeded. To reinforce our compliance promotion structure, in fiscal 2014 we revised our
Global Compliance Regulations, which form the basis for these activities. We also invited
outside institutions to evaluate our Group structure to promote compliance and its
operational status. We are considering improvements to issues that were identified.
We also take appropriate steps to verify that designs and other aspects of our products do
not violate laws and regulations. In fiscal 2014, we created a checklist to confirm thatdesigns of products for which we are filing pharmaceutical applications are in line withregulatory content, and completed the process of confirming their compliance.

Establishment of an Internal Reporting System
In principle, we aim to resolve any compliance-related issues within the organization but
have established "Campanula Lines" for resolving issues that are difficult to addressinternally. In the interest of resolving issues at an early stage, "Campanula Lines" allow ouremployees to seek consultations and file reports via telephone, postal mail or e-mailthrough two lines (in-house and external).
Any information received is handled anonymously to protect those providing the informationfrom any adverse reactions. Also, such internal reporting systems are in place at overseas
Group companies.
In fiscal 2014, we fielded 17 consultations from Group companies in Japan. We conducted
factual inquiries for consultations and dealt with each of them appropriately

44

"Campanula Lines" Internal Reporting System

Compliance Education

Continuously Providing Education on Compliance
Compliance managers are in place at each Group company, and Sysmex provides
compliance education for all employees. We have produced a Compliance Handbook anddistributed a copy to each Group company employee in Japan to ensure that all employees
are thoroughly compliance-aware.
At Group companies in Japan, in addition to conducting regular compliance education eachyear we set key themes and conduct education at related departments according to these
themes. Educational themes in fiscal 2014 were the Global Compliance Code, promoting fairtrade and ensuring transparency in relationships with medical institutions. We prepared new
video-based educational materials to promote understanding of the Global Compliance Codein particular.
We also conduct compliance education at Group companies overseas, in accordance withconditions in individual countries.
Main Compliance Education in Fiscal 2014 (Japan)(1) Global Compliance Code
Conducted e-learning
Prepared video-based educational materials to promote understanding(2) Promoting fair trade
Conducted e-learning related to anti-bribery legislation
Explained revisions of the Sysmex Promotion Code to Sysmex TMC and Sysmex CNA(3) Ensuring transparency in relationships with medical institutions
International Business Management Division’s members are trained about Sunshine
laws* and transparency guidelines* Sunshine laws: A vernacular term for laws such as those that have been put into place in the UnitedStates, France and other countries that make it a legal obligation for healthcare companies to disclose
information about payments to doctors and doctor-education hospitals.

45

Main Compliance Education in Fiscal 2014 (Overseas)
Jinan Sysmex (China): Conducted compliance education as part of training related towork improvements
Sysmex Wuxi (China): Conducted compliance education for all employees
Sysmex Asia Pacific: Conducted training on work improvements
Sysmex Indonesia: In addition to occasions when new employees joined the company,
provided opportunities for compliance education throughout the year

Holding a Lecture Presentation on Laws and Regulatory
Systems Related to Medical Instruments
An awareness of the laws and regulations in the countries
where our products are sold is an important part ofpromoting global compliance.
In December 2014, we held a lecture presentation bymembers of the Beijing Institute of Metrology and Testing(BIMT), which conducts field trials for regulatory applicationsin China, when they came to Japan for training. More than
80 people attended, including members of our Regulatory
Affairs and Research departments. Participants listened tolectures about recent revisions, particularly to China’s
Pharmaceutical Affairs Law. The lectures were followed by aquestion-and-answer session involving a lively exchange ofviews.

Lecture presentation underway

Security Export Control

Establishing a Security Export Control Structure
Sysmex formulates internal control regulations in this regard, and registers for approval withthe regulatory authorities at the Ministry of Economy, Trade and Industry.
Under the Compliance Committee we have established a Security Export Control Committee.
Based on our internal control regulations, this committee strives to reinforce our security
export control system and thoroughly verify the destinations and purposes of our export ofcommodity and technology.
We conduct workshops and e-learning to raise awareness of security export controls andexport administration regulations in the United States, as well as performing audits toensure thorough controls. Furthermore, to strengthen the security export control system for
the Group as a whole, we are introducing management systems that link with enterprise
resource planning (ERP) systems at regional headquarters overseas in an effort to ensure
management thoroughness and increase efficiency.

46

Intellectual Property Management

To Respect Intellectual Property
Sysmex accords third-party intellectual property rights the same level of respect as it does
its own.
Each new product development project involves a patent review to decide what patents toapply for to protect our own intellectual property and review third parties’ intellectual
property information. As a part of this review, a patent application study committee isconvened, where Intellectual Property members and R&D engineers draw up patentapplication policies and plans for technologies under development. At the same time, thecommittee investigates the status of third-party intellectual property rights, thereby
minimizing any risks associated with intellectual property.

Research Ethics

Conducting Appropriate R&D Activities
Being involved in clinical research and development and human genome and genetic
analysis research, Sysmex has adopted the Ethics Regulations on Clinical Research andDevelopment and Human Genome and Genetic Analysis Research, whose basic policies
include respect of human dignity and thorough protection of personal information. Sysmex
has also established a Research Ethics Examination Committee, which includes outside
members such as legal and science experts, in order to review research content. The list ofcommittee members and examination results are disclosed on our website, thus ensuringtransparency.
In relation to animal testing and recombinant genetic testing, we have also set up the
Testing Control Committee to deliberate on whether testing plans satisfy related legislation.

Bribery Prevention

Promoting Compliance with Applicable Laws in Japan andOverseas
Sysmex is striving to prevent corruption based on the 10th principle of the Global Compact,that "Businesses should work against corruption in all its forms, including extortion andbribery."
We have prepared a practical guide that covers applicable laws not only in Japan, but also in
the United States, the United Kingdom, China and other major countries, and use this guidein universal awareness activities.

47

Tax Transparency

Appropriate Tax Payments and Disclosure
Item 7 of the Global Compliance Code for Sysmex Corporation provides for "conducting
proper accounting and appropriate tax payments." Furthermore, in line with theinternational consensus we employ OECD guidelines when pricing internal transactions
among Group companies overseas.
We disclose Group payments of corporate and other taxes in financial and other reports, aswell as the reasons for differences with effective statutory tax rates.

Sysmex Group Compliance Code (Excerpt)
7. To Conduct Proper Accounting and Appropriate Tax Payments
We will always apply the appropriate accounting treatment and recognize tax
obligations set forth in applicable tax laws and accounting regulations andstandards.
7-1 Appropriate tax return procedures
We will adhere to tax laws and regulations applicable to jurisdictions both domestic
and foreign, following appropriate and compliant tax return procedures.
7-2 Proper accounting procedures
We will fully comply with tax laws, external accounting standards and internal
accounting procedures, including global, regional and local, related to accounting
entries of transactions such as sales and expenditures. Also, we will maintainaccurate and complete records of all slips invoices, receipts, books, records andother documents material to financial transactions and will not make false or
misleading entries.
7-3 Preparation of fair and transparent financial statements
We will prepare and distribute financial statements that fairly and accurately reflect
the financial performance of the company and fully comply with applicable laws,
regulations and accepted accounting standards, and will not conduct illegal acts suchas deliberate the misstatement of accounts.

48

Principles for Transparency in Relationships with Medical
Institutions

Introduction
Sysmex, with its Group corporate mission of "Shaping the advancement of healthcare,"conducts business activities with the aim of providing reassurance to its various
stakeholders, including customers. As part of this objective, at every stage of ouroperations—from research and development to manufacturing, sales and after-sales
support—we are increasing the number of opportunities for collaboration with medical
institutions and medical professionals. We believe that maintaining a strong sense of ethics
as we go about these activities is important in securing broader society’s understanding of
us as a company.
In 2012, the Japan Association of Clinical Reagents Industries formulated guidelines for
ensuring the transparency of relationships between corporate activities and medical
institutions. Concurring with the gist of these guidelines, Sysmex Corporation and Sysmex
International Reagents make public information about funding they provide to medical
institutions.

Disclosure Method
We disclose relevant information for the previous fiscal year on our website.

Start of Disclosure
Information concerning the start of fiscal 2013 is disclosed in fiscal 2014.

Target of DisclosureThis information is based on the "Guidelines on Transparency of Relationships between
Corporate Activities and Medical Institutions" established by the Japan Association of Clinical
Reagents Industries.

49

Risk Management Structure

Promoting Risk Management by Establishing a DedicatedCommittee
To control groupwide risk management activities, Sysmex established a Risk Management
Committee, which is chaired by a risk management officer, the Group’s chief executive incharge of risk management. The risk management officer is a senior executive officer ofSysmex Corporation who, as chair of the Risk Management Committee, identifies major risks
having the potential to significantly impact the Group’s business and consistently observes
the results of risk response and monitoring by individual divisions and affiliated companies.
For everyday risk management, committees other than the Risk Management Committee, as
well as departments and affiliated companies, respond independently to operational risks.
We clarify the responsibilities and roles of the Risk Management Committee for responding
to significant risks to the Group, and have in place a risk management structure forresponding to these risks swiftly and decisively.
Risk Management Structure50

Disaster Response

Creation of a Structure for Responding Swiftly in Times ofEmergency
Sysmex has formulated a business continuity plan and regulations on disaster response,
putting in place systems to ensure a rapid response in times of emergency. In addition, we
have introduced at affiliated companies in Japan the safety confirmation tools Sysmex
Corporation employs as a means of emergency communication. This system allows us toquickly determine the safety of members across the Group. We regularly conduct disaster
drills at the Group’s business offices, including those of affiliated companies in Japan, toinstill an understanding of actions required in times of disaster.
The groupwide backbone IT system that Sysmex Corporation operates is located at external,
disaster-resistant data centers. In addition, we created a backup structure so that we canquickly switch to a backup system in the event that disaster renders our regular system
inoperable.

Information Security

Conducting Ongoing Training to Increase Awareness andEnsure Rules Are Entrenched
Sysmex handles data about its customers, as well as on the entities with which it
collaborates on R&D and other testing. We recognize the importance of upholding
information such as this, as well as of other important corporate secrets, and view the leakof such corporate secrets as an important risk for the Group. Accordingly, we have in placestructures to prevent this risk from materializing.
For this reason, Sysmex Corporation and its affiliated companies in Japan conducts ongoingtraining for all employees at the divisional manager level and below to impress upon them
the importance of and increase awareness of information management and entrench ourrules on managing corporate secrecy.
In fiscal 2014, we conducted e-learning related to managing corporate information secrecy.
In addition, in the Sales & Marketing East / Japan and Sales & Marketing West /Japandivisions, we conducted training on personal information protection for managers anddirectors.

51

Involvement with Customers

Involvement with Shareholders

We deliver reassurance to our customers,
through unmatched quality, advanced
technologies, superior support, and actions
that consistently reflect the viewpoint of ourcustomers. We constantly look out for ourcustomers’ true needs, and seek to generate
new solutions to satisfy those needs.

Our shareholders can rest assured that wewill continue to improve the soundness andtransparency of our management policies,
while promoting information disclosure andclose communications. We commit ourselves
to a consistent yet innovative style ofmanagement, in order to achievesustainable growth and increased
shareholder value.

Involvement with Business
Partners

Involvement with Employees

We deliver commitment to our clientcompanies through broad-ranging
partnerships. We strive to be a company
that can grow in step with our trade
partners, through respect and mutual trust.

We honor diversity, respect the individualityof each employee, and provide them with aworkplace where they can realize their fullpotential. We value the spirit ofindependence and challenge, provide
employees with opportunities for
self-fulfillment and growth, and reward themfor their accomplishments.

52

We deliver reassurance to our customers,
through unmatched quality, advanced
technologies, superior support, and actions
that consistently reflect the viewpoint of ourcustomers. We constantly look out for ourcustomers' true needs, and seek to generate
new solutions to satisfy those needs.

Ensuring Quality and Safety
We have created a global management
structure and are working to ensure thequality and safety of our products andservices.

After-Sales Support /Scientific Activities
We help to improve the efficiency of ourcustomers’ operations by providing
meticulous after-sales support anddisseminating extensive scientificinformation.

Stable Supply
In response to growing global needs fortesting, we are reinforcing our structure forsupplying instruments and reagents.

Enhancing Customer
Satisfaction and Third-Party
Evaluations
We conduct customer satisfaction surveys
and take to heart the resulting opinions andrequests as we develop and improve
products and services.

Contributing to Resolutionof Healthcare Issues
We contribute to the resolution of a host ofhealthcare issues by using advanced
technologies to create innovating products
and services.

53

Quality Assurance

Quality Policy
By shaping the advancement of healthcare, our global business activities contributeto the creation of a fulfilling and healthy society.

Core behavior
1. We understand our customer’s needs, and provide products and solutions thatmeet or exceed their expectations.
2. We act based on our customer’s viewpoints by realizing that "Quality iscustomer satisfaction".
3. We seek to reassure our customers by establishing the highest quality
assurance standards and using them to enhance the quality of all aspects of ourbusiness.
4. We continually create innovative value for our stakeholders by developing andapplying new and unique technologies and knowledge.
5. We comply with all relevant national or regional regulations and standards toprovide safe products.
6. We maintain and continually improve the effectiveness of our quality
management system.
7. We establish quality objectives consistent with this quality policy, and measure
our performance against them.
Revised in May 2007

Building a Global Quality Management System
Sysmex has constructed a system to ensure compliance withlaws and regulations around the world based on "Quality
Policy" and "Sysmex Corporation Quality Compliance Policy,"
and we act accordingly.
With regard to our quality management system, nearly all
Group companies handling development or manufacturingfunctions have constructed management systems in line withand obtained certification under the ISO 9001 or ISO
13485*1 international standards. Of our 57 Group
companies, 31 have received ISO 9001 certification and 18
have obtained ISO 13485 certification. Sysmex also
conducts management reviews and audits of quality
activities at its principal Group companies to confirm thatthe management system is operating properly. In addition toquality policy training for all employees, we conduct
specialized quality education targeting specific departments
and job types. In fiscal 2014, we performed training on
54

Quality education

Session in the Global RAQA
Meetingquality complaint processing and product recall. We also
conducted training related to laws and regulations applied in
China.
To share quality-related information throughout the Groupand reinforce our systems, once a year we hold the Global
RAQA (regulatory affairs/quality assurance) Meeting, at
which Quality Assurance Department managers from
Sysmex Corporation, the regional headquarters in theAmericas, EMEA*2, China and the Asia Pacific region, andaffiliates gather. In fiscal 2014, this meeting took place inJapan in October and was attended by members of theregulatory affairs and quality control departments of ourvarious regional headquarters and overseas affiliatedcompanies. Participants took part in departmental
discussions and factory tours, confirming and sharing thenewest information about quality assurance.
*1 Quality management system for the design and manufacture of
medical devices*2 Europe, the Middle East, Africa

Reinforcing Structures to Maintain and Improve ProductQuality
Used in laboratory testing, Sysmex’s products play a vital role in protecting people’s lives
and good health. Being fully aware of this responsibility, Sysmex is making constant efforts
to maintain and improve product quality by building various systems, not to mention
complying with safety standards around the world at the design and development stages.
In addition to creating and revising operational standards for instrument manufacturing withthe aim of reinforcing quality control, in fiscal 2014 we set up the QMS Enhancement Projectto augment quality improvement activities on production lines. Also, Sysmex Europe’s
reagent factory completed compliance with good manufacturing practice (GMP) as definedby pharmaceutical legislation in Germany.
In the product development stage, we verify product quality by setting five "quality gates" inthe process leading up to market launch. Also, when we market products that are
manufactured by others, we verify their quality by conducting periodic audits of the
manufacturers and meticulously inspecting the products. As well as these efforts, in theunlikely event of a defective product we have systems in place to quickly identify andrespond to the problem.
The Sysmex global quality complaint processing system, which was implemented in April
2011, allows us to gather quality information in a timely way from markets around theworld. When we receive information about a bug or malfunction, we immediately look into
the cause and cease distribution of the product. We also share information globally about
bugs and malfunctions, as well as corrective and preventive actions.

55

Focusing on Quality Training in the ICH Business Unit (ICH-BU)
Of Sysmex’s three business units, the products handled by
the ICH* Business Unit (ICH-BU) are particularly importantto advanced diagnosis and medical judgments about
treatment methods. To continue supplying highly reliable
products, Sysmex ensures that the employees andspecifically the engineers in this business unit undergo
thorough quality training.
In fiscal 2014, we conducted group training for beginningengineers at the ICH-BU on the theme of "quality-aware
design." The program consisted of five basic levels and four
applied levels and encouraged an accurate understanding ofproduct evaluations (adequacy evaluations) and qualitycharacteristic design. Furthermore, in January 2015 we
conducted group training for all ICH-BU employees tocommunicate the importance of enhancing the quality ofhealthcare-related products and product design
considerations based on risk management.

Group training* An acronym taken from the initial letters of "immunochemistry testing," "clinical chemistry testing" and"hemostasis testing."

56

Quality and Safety Information
Sharing Customer Feedback on Product Quality and Safety
within the Company
At Sysmex, information on product quality and safety is centrally controlled at the Vigilance
Division. This division investigates and analyzes such information from customers, and feeds
their analysis results to relevant customers while also sharing them with design,
manufacturing and other related functions, so that these findings may be applied to quality
improvement and product development.
Product Quality and Vigilance Control System

Collection and Repair Information Posted on Our Website
Sysmex posts information about product collection and repair on its website under"Important Product Notices."

Working Aggressively to Stamp out Counterfeit Reagents
To assure accurate testing results, Sysmex asks its customers at healthcare facilities to use
Sysmex-branded instruments and reagents together. In recent years, however, reagents
disguised as Sysmex reagents have been found in circulation in some areas. The use of suchcounterfeit reagents cannot guarantee the reliability of testing results and, in some cases,
can be harmful to patients’ health.
Sysmex continuously monitors markets for counterfeit reagents. When they are discovered,
we work with local government institutions and judicial organs to ensure thoroughenforcement. We also caution medical institutions against the use of counterfeit reagents byplacing advertisements in newspapers.

57

After-Sales Support
Responding to Inquiries Rapidly and Responsibly
In Japan, Sysmex Corporation maintains a Customer Support Center, where experienced
staff members with expert knowledge cater to customers 24 hours a day, 365 days a year
(separate agreement required). By creating a database containing maintenance histories
and the details of past inquiries from customers to ensure quick reference, the center
responds to inquiries and requests both quickly and carefully. In fiscal 2014, the VOC (Voiceof Customer) Group that we set up in fiscal 2013 collected and analyzed some 12,000
customer comments received in the Japanese market. We fed back the results to related
departments for use in new product development and operational improvement activities.
Going forward, we intend to extend the scope of these activities globally.
Inquiries to Customer Support Center

Responding to inquiries at theCustomer Support Center

Supporting Customers’ Quality Control on a Daily Basis
At hospitals and other healthcare institutions, instrument and reagent precision is controlled
to maintain consistent testing data reliability. In most cases, the condition of instruments
and reagents is checked by comparing the measurement results of materials known as"control blood" with reference values and results on a daily basis.
Sysmex supports quality control by providing control blood. Customer instruments areconnected to the Customer Support Center via our online Sysmex Network Communication
Systems (SNCS). Measured values of control blood sent via the SNCS from customer
instruments are received by the Customer Support Center, which tallies and compares thesevalues with its other data results on the same instruments, detects signs of abnormalities
and returns the analysis results to the customer.
This service also helps to prevent trouble by using information from the sensors placed on
various instruments, the number of operations and maintenance periods.

58

Holding a Global Meeting on After-Sales Support
In October 2014, we held a Global Meeting on After-Sales
Support to share after-sales support issues and perspectives
on a global basis.
The meeting was attended by 44 people responsible forpractical operations in eight regions, including regional
headquarters overseas. Through workshops themed on"customer support associated with the sales launch of
XN-Series automated hematology analyzers" and "providing
SNCS service", information was shared about the issues
faced in various regions and value to be provided tocustomers in those areas, leading to animated discussions.
We also decided to step up our overall SNCS service
enhancement initiatives through the Global SNCS Team,
whose objective is to share information globally, and bylaunching working groups to jointly address priority issues
that have recently arisen. Going forward, we will continue toenhance groupwide after-sales support quality through close
communications beyond regional boundaries.

Meeting underway

Utilizing ISO to Raise the Level of Quality Control
In fiscal 2013, Sysmex Corporation obtained ISO/IEC 17025*1 certification for thecalibration service it provides for hematology analyzers. Sysmex provides SNCS*2 andeQAPi*3 external quality control programs for general testing, hematology, clinicalchemistry, immunology and other testing. We are the first organization in Japan to receive
this ISO/IEC 17043*4 accreditation, not only in the laboratory testing field but also across allindustries. These certifications enable Sysmex to provide customers with high-quality
services as an ISO accredited Calibration Laboratory and Proficiency Testing Provider.
In fiscal 2014, we calibrated around 640 hematology instruments according to
ISO/IEC17025, issuing calibration certificates bearing the certification symbol to guarantee
the instruments traceable*5 according to internationally standard measurement methods.
We also expanded our ISO/IEC 17043 certification region to include, in addition to Japan,
Europe, Africa, the Middle East and Taiwan, enabling us to issue ISO/IEC 17043
certifications in these areas, as well. We plan to continue expanding areas.
*1 ISO/IEC 17025: International standard on general requirements for the competence of testing andcalibration laboratories.
*2 ISO/IEC 17043: International standard on conformity assessment—general requirements forproficiency testing.
*3 SNCS: Refer to the above section entitled "Supporting Customers’ Quality Control on a Daily Basis."*4 eQAPi: A large-scale real-time external quality assessment program. This service involves analyzing
the results of measurement data in real time, which contributes to improving the accuracy of everyday
testing.
*5 Traceable: Assuming that measuring instrument calibration is conducted on the basis of higher
measurement standards, the calibration history can be traced back clearly to primary standards, which
are national and international standards.

59

Instruments Registered with the On-Line Quality Control Services (SNCS, eQAPi)(Worldwide, Cumulative)

Overseas Example (Europe): Training Center in Belgium
Receives ISO 29990 Certification
In fiscal 2014, Sysmex Belgium’s training center received certification under theinternational ISO 29990 standard. This international standard, which is related to learning
services in non-formal education and training, verifies that the center’s programs andtrainers meet certain quality levels. Sysmex Nederland has also received this certification.

Scientific Activities
Holding Scientific Seminars for Clinical Professionals
Sysmex keeps clinical professionals updated on scientificinformation by sponsoring seminars and study sessions for
doctors and medical technologists.
In June 2014, venues in Sapporo, Tokyo, Kobe and Fukuoka
were linked by satellite relay to hold the 37th Sysmex
Scientific Seminar. Themed on "Ongoing Advances in Disease
Biomarkers—Changing Cancer Treatment throughBiomarkers at the Front Line of Disease Biomarker
Research," the seminar was attended by 825 people.

37th Sysmex Scientific Seminar

Publishing Scholarly Magazines
We distribute the Sysmex Journal International (Japanese, English and Chinese editions) to
medical institutions and university libraries in more than 100 countries throughout theworld, thus keeping many clinical professionals updated on current clinical medicine andhealthcare testing.

60

Overseas Example (Asia): Holding Scientific Seminars in South
Korea, Malaysia and Vietnam
Sysmex holds scientific seminars in various other Asian
countries in addition to China. In fiscal 2014, we held theseseminars in three countries: South Korea, Malaysia andVietnam.
The seminars in South Korea took place in Seoul in
December 2014 and February 2015. The second seminar
attracted 100 physicians specializing in laboratory testingfrom throughout the country and featured lectures onhematology and other breaking topics. Participantscommented that the content and atmosphere of the seminar
had improved compared to a seminar held in the previous
fiscal year.

Scientific seminar in Malaysia

Overseas Example (Vietnam): Supporting Customers’
Academic Events
Sysmex Vietnam holds seminars to help customers learn how to use Sysmex products
accurately. The company also supports a number of academic events aimed at cultivating a
deeper understanding of hematology and other fields in which Sysmex has expertise.

61

Stable Supply of Diagnostic Instruments
Establishing New Factories and Expanding Facilities to Meet
Growing Global Demand
Sysmex maintains the right number of the correct types of products in the right locations in
its inventories to ensure its ability to provide a stable supply of testing instruments. We
have also constructed a new factory and are expanding our facilities to meet growing global
demand.
We have established the new i-Square instrument factory in the city of Kakogawa, Hyogo
Prefecture. Construction on this facility was completed in June 2014. i-Square employs aseismically isolated structure to protect its production infrastructure and warehouse even in
the event of an earthquake and allow stable supply to continue. In addition, in fiscal 2014
we completed construction to expand production facilities at affiliated instrument
manufacturers in Japan.

Stable Supply of Reagents
Setting Appropriate Inventory Levels and Promoting
Alternatives to Materials Subject to Procurement Risks
With regard to reagents, in addition to setting appropriate
inventory levels we are working from several angles toensure supply stability. As disaster-preparedness measures,
we diffuse risk through overseas manufacture and address
procurement risk by promoting alternative materials.
In fiscal 2014, we augmented our reagent production
capabilities in Asia and Europe by increasing reagent
production capacities in Singapore and Germany. At our
Seishin Factory, we revised our reagent manufacturing
processes to meet rising demand in China, shorting
production lead times. At the same time, we conducted arisk assessment on reagent material supply.

62

Reagent factory in GermanyEnhancing Customer Satisfaction
Conducting Customer Satisfaction Surveys in Japan andOverseas
Sysmex Corporation conducts surveys of customers who attend its national seminars andexhibitions, asking them to evaluate Sysmex’s sales and service activities. We also conduct
questionnaire surveys related to the Customer Support Center of people who take part incustomer training held by the Solution Center. In 2014, 274 people responded to thissurvey. Their satisfaction level was 91.6%, up 6.3 percentage points from the precedingyear.
We respond swiftly and make improvements in response to the requests and opinions we
receive in this way, as part of our effort to enhance customer satisfaction. We visit in person
customers who have purchase new products so that we can hear firsthand their opinions
and impressions about product functions and operability, and feed this information back to
the product development departments. In addition to these initiatives, we are creating acustomer relationship management (CRM) system to comprehensively manage various
customer-related information. In fiscal 2014, we added customer-input collection
functionality to our CRM system and began feeding the information collected back to designand development departments. We are utilizing this system to develop products and make
operational improvements in response to customers’ wishes.
When customers visit us from overseas and tour our offices and factories, we take this as anopportunity to solicit their opinions. Group companies overseas also conduct their own
customer satisfaction surveys.

Overseas Example (All Countries): Reinforcing Global Sales
and Support Networks
Sysmex established new subsidiaries in Colombia in May 2014 and Australia in November.
Also, in April 2014 we began conducting direct product sales and support in India in thefields of hemostasis and clinical chemistry, adding such activities to those already taking
place in the field of urinalysis.
Healthcare needs in these regions are growing in line with economic expansion, aging
populations and rising healthcare spending. Accordingly, we are reinforcing our sales andsupport systems to meet customer needs more accurately and swiftly.

63

Evaluation of Social Contributions through Business
Activities
CC-1001 Certified under "3rd Heritage Program of Legacy
Analytical Instruments/Scientific Instruments"
In the 3rd Heritage Program of Legacy Analytical
Instruments/Scientific Instruments, Sysmex received
certification for its CC-1001 automated hematology analyzer.
The Heritage Program of Legacy Analytical
Instruments/Scientific Instruments, established in 2012 by
the Japan Analytical Instruments Manufacturers’ Associationand the Japan Scientific Instruments Association, is the only
heritage program in Japan in the category of analytical andscientific instruments. The program’s aim is to recognize theheritage of analytical instruments and scientific instrumentsthat have contributed in an important way to the lives,
economy, education and culture of the Japanese populace.
The CC-1001 was recognized as being the first automatedhematology analyzer developed in Japan, and the world’s
first to employ the conductance method. The instrument wasalso evaluated highly for demonstrating Japan’s uniquedevelopments in technology and instruments on a world
scale and its substantial contribution to the establishment
and operations of healthcare diagnostic systems in Japan.

64Award ceremony

CC-1001 automated hematology
analyzer

Developing Products and Technologies That Help to
Resolve Healthcare Issues
Working to Popularize Simple and Inexpensive Testing for
HIV/AIDS
We welcomed Partec into the Sysmex Group in 2013. Partec
has a strong presence in research domains and in themarket for detecting infectious diseases such as HIV andmalaria. Partec is a pioneer in the flow cytometry (FCM)
method, in 1968 becoming the first company in the world tocommercialize research equipment employing this method.
Products that Partec has developed for emerging markets
and developing countries using this technology havecontributed to the treatment and monitoring of patients
suffering from the world’s three leading infectious diseases:
HIV/AIDS, tuberculosis and malaria. Compact and portable,
its instruments can be used in environments where medical
treatment facilities are lacking, and the reagents they use
cost only a fraction of those offered by competitors. To
provide easy access to testing, the company is rolling out
mobile laboratories in various regions. Particularly in Africa,
Partec accounts for a major share of the market in testingfor HIV/AIDS.
Going forward, Sysmex will leverage its global network toincrease recognition and adoption of Partec’s products in
Asia and Central and South America as well as Africa. In thismanner, we are working to help improve healthcare
environments in various emerging markets and developing
countries.

65

Compact and portable
instruments to test for infectious
diseases

Deployment of mobilelaboratories in areas lacking
infrastructure

Receiving Manufacturing and Marketing Approval for a Reagent
to Monitor therapeutic Gains on Chronic Myelogenous
Leukemia (CML)
CML is a disease that occurs as a result of chromosomal
abnormalities in the blood cells. Using molecularly targeteddrugs is an effective method of treatment, and treatment
guidelines in Japan and other countries recommend the useof genetic testing* to monitor therapeutic gains. However, inJapan the reagent that has received manufacturing andsales approval from the Ministry of Health, Labour andWelfare for use in genetic testing based on Japan’s
guidelines has not been sold.

ipsogen BCR-ABL1 Mbcr IS-MMR
DX reagent

Sysmex Corporation therefore began working toward the
manufacture and sale of a reagent that was effective formonitoring based on the guidelines. In August 2014,
Sysmex became the first organization in Japan to receive
approval to manufacture and market the ipsogen BCR ABL1
Mbcr IS-MMR DX reagent, and insurance coverage wasapproved in April 2014. Hereafter we plan to introduce theproduct into the Japanese market.
* The practice guideline on hematopoietic malignancies (2013edition) created by the Japanese Society of Hematology
recommends using the BC R-ABL1 mRNA test for monitoring
accuracy and reporting results according to international standards

Other New Products and Services (Fiscal 2014)
Launch of new ASTRIM FIT product for non-sampling measurement of estimatedhemoglobin levels
Introduction of the HISCL TARC Assay Kit to help evaluate the severity of atopic
dermatitis through simple blood testing
Sales launch of the LC-1000 exfoliative cell analyzer, aimed at contributing to efficiency
improvements in cervical cancer screening tests

66

Our shareholders can rest assured that wewill continue to improve the robustness andtransparency of our management policies,
while promoting information disclosure andclose communications. We commit ourselves
to a consistent yet innovative style ofmanagement, in order to achievesustainable growth and increased
shareholder value.

Information Disclosure
General Meeting and Informal Meetings for Shareholders
Valuing opportunities for direct dialogue with ourshareholders, we make an effort to encourage theparticipation of as many shareholders as possible at theGeneral Meeting of Shareholders.
After the general meeting, we hold informal meetings topromote interaction with shareholders. As in the previous
year, in fiscal 2014 the theme of the meeting was "Sysmex,
instilling confidence." After using panels and video to provide
explanations about our business and IR activities, personnel
measures and global social contribution activities, as well as
third-party evaluations of Sysmex, we opened the floor forcomments and questions.

Informal meeting forshareholders

We accommodate shareholders who are unable to attend on
the day by enabling them to exercise their voting rights inwriting or over the Internet. Furthermore, we contribute to
the readability of convocation and resolution notices. We
also prepare English-language versions for overseas
shareholders, print color convocation notices and post thesame information on our corporate website.

Further Enhancing Information Disclosure
We make it a rule to disclose any information that we believe will affect investment
decisions in light of our own standards, as well as to observe applicable laws and regulations
concerning securities trading and the Rules on Timely Disclosure of Corporate Informationby the Issuer of Listed Security and the Like established by stock exchanges.
In addition to biannual briefings on financial results (after year-end and after the second
quarter), Sysmex has held a conference call following the announcement of business resultsin the first and third quarters in an effort to further enhance information disclosure.
67

External Evaluation
Chosen for Excellence in Disclosure to Individual Shareholders
for Third Consecutive YearIn fiscal 2014, Sysmex received an award for the third
consecutive year. In the 2014 Awards for Excellence inCorporate Disclosure, sponsored by the Securities Analysts
Association of Japan, we were selected for excellence indisclosure to individual investors. Out of the more than 251
companies evaluated, we were ranked second. As adistinction for having received this high evaluation for thethree most recent consecutive years, we received a letter ofcommendation citing the Company’s ongoing commitment tomaintaining a high level of disclosure.
We were given high marks for our explanations at briefing
meetings for individual investors, including our chairman andCEO's explanations in his own words, as well as video
distribution of the content of these meetings and easy-tounderstand materials incorporating photos and figures. We
were evaluated highly for the construction of our website forindividual investors that allows for easy searches of ourbusiness content and strengths. Our shareholder newsletter
also scored highly for its extensive content.

68

Awards for Excellence inCorporate Disclosure award
ceremonyWe deliver commitment to our clientcompanies through broad-ranging
partnerships. We strive to be a company
that can grow in step with our trade
partners, through respect and mutual trust.

CSR Promotion throughout the Value Chain
Putting in Place a Procurement Policy that Takes CSR into
Account
Sysmex Corporation has formulated a procurement policy that expresses its basic
considerations on selecting suppliers and conducting procurement transactions, and is
promoting its deployment across the value chain. In fiscal 2013, we revised the policy topromote CSR through procurement. We also added a clause about formulating business
continuity plans (BCP) as befits a company that is developing its business globally in thehealthcare field, and another on promoting business activities and CSR in compliance withthe laws, regulations and social conventions of host countries.
When confirming our business partners’ CSR activities, we conduct CSR surveys containing
such topics as occupational health and safety, handling human rights issues and preventing
bribery of officials in Japan and overseas. In fiscal 2014, we received survey responses from225 of our 269 business partners. We also conducted CSR surveys of seven new potential
business partners and interviewed their managers to check the status of their CSR activities.

69

Procurement Policy
In "shaping the advancement of healthcare," the Mission set forth in the Sysmex
Way corporate philosophy, we deliver commitment to our business partners throughequitable and fair procurement activities. We also strive to be a company that cangrow in step with our trading partners in a spirit of mutual trust andencouragement. Operating in strict compliance with laws, regulations, and contracts,
and adhering to high ethical standards, we carry out consistent procurement ofcomponents and raw materials that meet the levels of quality required by healthcare
providers. We closely follow these policies in our endeavors to supply products that
customers worldwide can use with confidence. Similarly, we hope that our business
partners will cooperate with us in the following seven areas as we continue to create
and enhance unique and creative values.
We ask our valued business partners to:
1. Assure quality to the requisite degree for healthcare products
2. Build a system for reliable supply
3. Refine technological capabilities that contribute to the development ofhealthcare
4. Create stable business foundations and formulate business continuity plans(BCP)
5. Promote business activities and CSR in compliance with the laws, regulations
and social conventions of host countries
6. Carry out environmental management to help conserve the global naturalenvironment
7. Supply products at reasonable prices and engage in aggressive cost-reduction
programs
Revised in March 2014

Reinforcing Relations with Business Partners
We strive to enhance relations with our business partners so
we can conduct business together based on theirunderstanding our business directions and procurement
policy.
In fiscal 2014, we held procurement policy briefings for ourbusiness partners in Japan. We emphasized the importanceof CSR to Sysmex and explained the content of responses
we like to see from our business partners.

70

Procurement policy briefingAiming to Improve the Quality of Supplied Parts and Raw
Materials
Our ability to provide high-quality products to customers in a stable manner depends on
maintaining or improving the quality of the raw materials and parts we procure. We
prepared a Quality Assurance Agreement that defines the quality requirements in 2009, andafter also preparing a handbook to improve understanding of the content we have since
been concluding this agreement with suppliers.
We conduct quality audits without fail on new procurement partners to ensure that quality
management systems are operating appropriately. For existing procurement partners, we
inspect products for quality when they are delivered, conducting quality audits if deemednecessary as a corrective or precautionary measure.

Holding Briefings to Share the Importance of Managing
Process Changes
When manufacturing medical instruments, "process change
management" is extremely important for identifying
manufacturing processes to be changed and managing thosechanges to ensure against any impact on quality.
Sysmex Medica, a Group company that manufactureshigh-end units for testing instruments, held a briefing in
December 2014 for business partners that handle unit
assembly. Sysmex Medica called for all assemblers to attend
the briefing, which explained the impact medical instrument
quality defects could have on the Company and theimportance of process change management. Attendees were
enthusiastic with their questions, leading to an animateddiscussion.

Briefing for assemblers

Ensuring Thorough Compliance in Transactions
Conducting Internal Awareness Activities to Ensure
Compliance with Procurement-Related Legislation
We have in place an electronic procurement system (Sysmex Trade Mission, or STM). In
addition to preventing the reduction of payments to inappropriate levels, as well as avoiding
product returns, each year we conduct training on this system.
In fiscal 2014, we provided explanations to employees newly assigned to departments thatplace orders for R&D materials, as well as new employees, about how to use STM, points ofcaution from the receipt of ordered materials through to payment, and compliance with alllaws, including the Act Against Delay in Payment of Subcontract Proceeds, etc., to
Subcontractors (Subcontract Act). We also conducted education for employees newly
assigned to the Procurement Department about the Subcontract Law, our procurement
policy and CSR.

71

Explaining Policies on Compliance to Distributors
Sysmex rigorously ensures compliance to build sustainable
and fruitful partnerships with its distributors. We prohibit
employees from abusing any dominant bargaining position,offering excessive entertainment, presents or the like when
dealing with distributors. At the same time, we takeadvantage of opportunities presented by product briefings,
which are held on occasions such as new launches, to share
our policies and activities with our distributors, helping themto deepen their understanding of the importance ofcompliance. We engage in continuous communications with
our overseas distributors through regular meetings at theirlocations as well as teleconferencing and meetings.
In fiscal 2014, Sysmex RUS held its first distributor
conference in Moscow. Also during the year, Sysmex Asia
Pacific conducted its biennial business partner meeting, thistime in Sri Lanka.

72

Distributor meeting (Russia)

We honor diversity, respect the individualityof each employee, and provide them with aworkplace where they can realize their fullpotential. We value the spirit ofindependence and challenge, provide
employees with opportunities for
self-fulfillment and growth, and reward themfor their accomplishments.

Respecting Human Rights
and Diversity
We support the Universal Declaration on
Human Rights and ILO’s Core Labour
Standards, work to prevent human rights
abuses and strive to ensure and utilize
diverse human resources.

Employee Evaluation,
Treatment, and Human
Resource Development
We endeavor to treat employees fairly. Also,
we have in place a host of human resource
development programs, providing
opportunities for self-fulfillment and growth.

Ensuring a Work-Life
Balance
We have in place a childrearing support anda variety of other programs to support awork-life balance among our employees.

Respecting Workers’ Rights
Based on the principles of Global Compact
and ILO’s Core Labour Standards, we upholdthe freedom of labor association andrecognize the right to collective bargaining.

Considering Safety and
HealthTo foster a safe and good working
environment, we have established a Safety
and Health Committee at each of our offices,chaired by the executive at the head of that
office.

73

Respecting Human Rights
Adhering to the Universal Declaration of Human Rights and
ILO’s Core Labour Standards
Sysmex has formulated guidelines describing particularly important rules and behaviors forcompliance with basic respect for human rights as indicated in "8. To Respect Human Rights
and to Improve Occupational Health and Safety" of Sysmex’s Global Compliance Code. This
code clarifies a variety of discriminatory actions that are not tolerated; prohibits sexual
harassment, power harassment and other acts that ignore human rights; underscoresprohibitions on child labor and forced or compulsory labor; and seeks to ensure a safe andcomfortable workplace environment. We also conduct training programs as needed toensure the code is put into practice.
In May 2014, we updated our compliance code, addressing global human rights issues as a
global company. We set forth clearly our adherence to the Universal Declaration of Human
Rights and ILO’s Core Labour Standards.

Sysmex Group Compliance Code (Excerpt)
8. To Respect Human Rights and to Improve Occupational Health and
SafetyWe will support the Universal Declaration of Human Rights and Core Labour
Standards, and respect the fundamental human rights of each person and will not
infringe thereon by such acts as discrimination, harassment, etc. We will also
comply with applicable laws and regulations, endeavor to improve occupational
health and safety, and will not force any unfair labor practice on the personnel of thecompany.
8-1 Prohibition of discrimination and harassments
We must not discriminate with regard to a person’s sex, age, nationality, race,
origin, belief, religion, social status, lineage, illness or physical disability, nor must
we behave in a manner that ignores the dignity of other people, including such acts
as sexual harassment, power harassment, etc.
8-2 Privacy protection
We must acknowledge the diverse values of people as individuals, and must respectprivacy of each and every person. We must not unnecessarily disclose private
information we acquire in the course of work to any other third person and must notseek to obtain private information unnecessarily.
8-3 Elimination of forced labor and child labor
We must not engage in unjust labor practices by detaining someone against his or
her will. We must not hire children below the minimum age of employment set forth
by applicable laws or regulations.

74

8-4 Assurance of safety and health at workplaces
We must adhere to laws and regulations related to safety and health practices sothat every employee may work with peace of mind, and must maintain and enhance
the mental as well as physical health of every employee so that a safe andcomfortable working environment can be established.

Consultation and Reporting Systems Related to Human Rights
Sysmex has set up "Campanula Lines" as an internal reporting system for Group companies
in Japan to enable consultation related to sexual harassment and power harassment, among
other topics. We also have internal reporting systems in place at Group companies overseas.

Conducting Training to Prevent Human Rights Abuses
Sysmex Corporation strives to prevent human rights abuses by conducting training toprevent harassment and impart a proper understanding of working. We also strive toprevent human rights abuses.
In fiscal 2014, we conducted training for newly appointed managers on such topics as
harassment, personnel administration and the Workers Dispatch Act. We also held
harassment training for all employees at the Kakogawa Factory, including managers.

Ensuring Diversity
Embracing Diverse Personnel through Diversity and Inclusion
Sysmex Corporation has evolved from the practice of "diversity," which simply welcomes
diverse human resources, to the more extensive practice of "diversity and inclusion." Thisapproach involves creating a working environment that is amenable to a wide variety ofhuman resources, recruiting and stationing them without regard for nationality, race, genderor physical disability.

Aiming to Equalize Employment Opportunities
Sysmex Corporation recruits new employees based the evaluation of individuals, without
regard for gender, nationality, race, age, employment history or disability status.
Specifically, we instituted year-round hiring to offer equal opportunities to people who had
already graduated or had studied overseas and therefore might be at a disadvantage.
To ensure our ability to recruit personnel around the world, we conduct Company briefings
and interviews overseas, as well as conducting Web-based briefings and interviews. In fiscal
2014, foreign personnel made up 19.7% of new recruits, including mid-term hires.

75

Promoting Employment of People with Disabilities
Sysmex Corporation encourages the employment of people with disabilities. Targetinglong-term employment, we design working conditions to maximize individuals’ aptitudes andskills. In fiscal 2014, employment of people with disabilities amounted to 1.86%.
In addition to focusing on the hiring of people with disabilities, we are introducing
Ostomates (toilets for people who have had colostomies or urostomies) and otherbarrier-free facilities, each month a Safety and Health Committee member visits workplaces
to confirm that facilities are easily navigable by wheelchair. These are examples of ourongoing efforts to create a working environment that is amenable to people with disabilities.

Employing Seniors—System for Reemploying Post- Mandatory
Retirement Age Workers
Sysmex Corporation’s mandatory retirement age is 60, but we have in place a system forrehiring until age 65 people who have retired at the mandatory retirement age and still wish
to work. In fiscal 2014, 20 people who had reached the mandatory retirement age wererehired according to internal rules, up from the previous year’s 16.

Cultivating Female Leaders
One aspect of our efforts to support the success of women is an initiative to cultivate female
leaders. In fiscal 2014, two female employees participated in a program run by Japan
Women’s Innovative Network (J-Win), an NPO that supports diversity management.
This program gathers women in the interest of career development, irrespective of businesstype or category, aiming to forge mutual support networks.
Providing opportunities for mutual training has proven successful at cultivating leaders. In
fiscal 2014, our percentage of female managers* increased by 0.46 percentage point, to7.29% from 6.83%.
※ "Managers" indicate people who have subordinates or who are of a rank equivalent to those withsubordinates.

Overseas Example (United States): Formulation and Enactmentof an Affirmative Action Program
Sysmex America has designed and put in place an affirmative action program aimed at
encouraging diversity. The company also operates a variety of systems to support work-lifebalance among its employees.

76

Employee Evaluation and Treatment
Equitably Evaluating Personnel Based on Abilities andAccomplishments
Sysmex Corporation values the spirit of independence and challenge, provides employeeswith opportunities for self-fulfillment and growth, and rewards them for theiraccomplishments.
Based on the principle of fair treatment, Sysmex’s basic approach toward evaluation is to"reward employees for capabilities that contribute to the enhancement of corporate value aswell as for producing accomplishments." In addition to evaluating employees for theirsuccesses, we evaluate the processes leading to employee growth (competency
evaluations). To achieve fairness and ensure that employees understand their evaluations,
we show employees their evaluation results and their superiors’ comments.

Basic Principles of the Personnel Management System
1. Ensuring long-term employment
Establishing a double-linear-type competence-based rating frame thatenables a diversity of employees to maximize their skills, and providing
opportunities for self-realization and growth
2. Promoting the development and cultivation of diverse human resources
Establishing competence-based rating standards and promoting cultivationof human resources and normalization of career advancement throughclarification of promotion criteria
Evaluating not only accomplishments but also the processes of producing
achievements (realization capability) in order to promote human resource
development and the reform of corporate culture
3. Rewarding employees for capabilities that contribute to theenhancement of corporate value as well as for producing
accomplishments
Simplifying the relationship between evaluation and reward.
Creating a remuneration structure that is easy for everyone to understandand that rewards employees in accordance with their contribution, role,competency and accomplishments

Supporting Employee Career Design
Sysmex Corporation employs a voluntary reporting system for all employees. The systemaffords each employee with the opportunity to consider their own career directions and life
plan, as well as to affect their own skills development and placement according to thecontent of their reports.

77

Employment Figures (Status of Hiring and Turnover)Sysmex Corporation recruited 130 new hires in fiscal 2014, 42 people left the Company, andthe turnover rate was 1.96%. As a result, the total number of employees (non-consolidated
basis) as of March 31, 2015 was 2,323. Citing our high rate of retention for people three
years after being hired, we tied for first in the Toyo Keizai ranking of "Excellent Companies
for New Employees."

Hiring Contract and Temporary Employees to Regular Positions
Sysmex Corporation actively hires contract employees and temporary employees as regularpersonnel. We have clarified our internal regulations for hiring people working on limited,
fixed-term contracts, offering them fair opportunities for promotion. We put this informationon our intranet to encourage thorough understanding of these rules. When renewing
temporary employees’ contracts, for employees that meet certain conditions we notify
temporary placement agencies of the possibility of employing such personnel directly.
Through the ongoing application of these systems, 19 contract and temporary employees
were promoted to regular positions in fiscal 2014.

Introducing Internal Awards Systems to Motivate Employees
In fiscal 2011, Sysmex introduced the Group CEO Award system for recognizing individuals,organizations or groups that contribute most significantly to the realization of the Sysmex
Way, our Group corporate philosophy, sharing these achievements throughout the Company
each year. We provide awards for one individual and one group.
To motivate R&D engineers and heighten awareness of intellectual property, Sysmex
Corporation has also introduced three patent award systems: the Patent Grand Prize/PatentPrize of Distinction, the Patent Meister and the Filing Commemoration Prize. We also present
a Quality Award for success in quality improvements.

Overseas Example: Personnel Systems at Regional
Headquarters
Our regional headquarters for the Americas, EMEA*, China and Asia Pacific have in placepersonnel systems in line with the legal frameworks and cultures of these regions.
In general, we use management by objectives approaches to evaluate personnel. To somedegree, we also employ competency evaluations in the Americas, EMEA* and Asia Pacific.
We use talent management education for cultivating personnel and conduct level-based
training. In addition, these headquarters have in place an employee exchange program with
Sysmex Corporation in Japan to promote global personnel intercourse and training.
* EMEA: Europe, the Middle East and Africa

78

Human Resource Development
Human Resource Development Based on Four Concepts
Based on its four concepts for human resource development,
Sysmex Corporation operates a training system offering
selective, rank-based and elective training that seeks tonurture personnel in a planned and gradual manner. In fiscal
2014, on average each employee underwent 28.2 hours of
training, and average per-employee expenditure amounted
to ￥157,789*. Furthermore, in April 2015 Sysmex opened
the Global Communication Center in Okuike, Ashiya, Hyogo
Prefecture. This new facility aims to serve as a gathering
place for people of diverse cultures and values, encouraging
communication in surroundings that provide a break fromeveryday routines and foster broader networks.
* This figure indicates training provided by the Human Resources
Department and excludes certain types of training, such as
self-development and training related to specialized work fordivisions.
New employee training

Four Concepts of Human Resource Development
1. Link training, evaluation and work (show results)
2. Promote globalization of the Sysmex Group
3. Invest in ongoing human resource development
4. Be a company that cultivates human resources andpersonal growthThree Core Training Systems
Training Type

Objective

Selective training

Cultivate global leaders
Cultivate future management personnel

Rank-based
training

Acquire the minimum level of understanding and expertise inmanagement and issue resolution required at each level
Promote communication between departments

Elective training（Sysmex College）

Obtain practical expertise, knowledge and skills on businessexecution
Gain various types of business management expertise

Outline of the Global Communication Center
Location :Ashiya, Hyogo Prefecture

Site area :33,399m2

Floor space : 2,914m2
Facilities :Training room, conference room,
collaboration space, theater room, lodging
facilities, cafeteria, etc.
Global Communication Center(theater room)79

Focusing on the Cultivation of Global Human Resources
Sysmex focuses on developing global human resources,
which are core to its global business. We introduced the
Global Apprentice Program targeting younger employees infiscal 2011. We solicit participants internally for thisprogram, which offers employees the opportunity to work atoverseas subsidiaries and is open to employees who aim todevelop global careers. The objective of the program is tofoster a core of global personnel within the Company.
Upon their return, the employees participate in debriefing
meetings, where they report on their experience working inoverseas market environments. This approach helps toconvey information about overseas conditions to Sysmex in
Japan. By the end of fiscal 2014, a total of 25 employees
had been dispatched overseas through this program.

Employees strengthening ties
through the Global Apprentice
Program

Promoting a Global Personnel Exchange Program
Sysmex introduced the Global Personnel Exchange Programin fiscal 2012 to promote mutual exchange between
employees in Japan and at Group companies overseas. The
program aims to strengthen ties through deeper mutual
understanding.
In fiscal 2014, a total of 20 employees from the Americas,
EMEA*, Asia Pacific, China and Japan regions underwent
training under this program in November. They experienced
operations at headquarters in Kobe and participated in
discussion and forums, as well as deepening relations
through customer visits. In December 2014, Japaneseemployees visited Sysmex Europe in Germany, fostering
mutual understanding by experiencing operations there andparticipating in opinion exchanges.

Discussion forum

Interacting with employees inother regions through operational
experiences* EMEA: Europe, the Middle East and Africa

Enhancing the Skills of Employees in Manufacturing
Workplaces
Enhancing the technical skills of employees who are involvedin manufacturing is important for Sysmex, which produces
medical equipment. Accordingly, Sysmex Corporation has
established the Monozukuri Training Center to provide
hands-on training throughout the year in the knowledge andskills needed to manufacture Sysmex products.
Training at the Monozukuri
Training Center

80Training to Generate New Innovation
During a one-year period from September 2013, Sysmex
Corporation’s Central Research Laboratories undertook an
initiative known as "Developing an Organization for Radical
Innovation."
The Central Research Laboratories has three primary roles:
generating innovations, tracking leading technology trends
and resolving issues raised by business departments. In its
role as the Group’s intellectual powerhouse, it is important
for the laboratories to generate innovations that delivertechnology transformations and create value—in short,"radical innovations."
The activity involved dividing the laboratories up into seventechnology teams, each of which took on the challenge ofboosting innovation in their respective areas. At the resultspresentation in September 2014, members described theobjectives their teams had set, their activities over the past
year and what their thoughts were on these themes going
forward. We plan to continue this initiative.

Activity logo

Results presentation

Overseas Example (France): Conducting Language Training toEnhance Communications within the GroupAs numerous languages are used throughout Europe, communicating with other regions is
an important task. In addition to English, employees need to be proficient in many
countries’ official languages.
HYPHEN BioMed, a Sysmex Group company in France, brought in English- and Frenchlanguage instructors in fiscal 2014 and set up a new language training program. This
program divides students into groups, providing instruction depending on their proficiencies
and needs. The courses work to raise language skills through coursework using DVDs andother materials, as well as role plays and discussions, and tests are conducted to evaluate
progress. A number of students of this program commented on how it has improved theircommunications within the Group.

Overseas Example (Germany): Actively Supporting Employees’
Personal Growth
In addition to specialized skill development and personal development courses for
employees, Sysmex Europe has in place a language training programs (English andJapanese), and all employees undergo training on a regular basis.
For example, Sysmex Europe conducts "Sysmex Academy" providing product-related
training and "HR Academy" to enhance "soft skills" like team-building, leadership andlanguage proficiency through face-to-face lectures or e-learning. It also has "On-Boarding
Training*" to support employee growth.
* On-Boarding Training: An internal training method used to help newly hired employees to fit inorganization’s environment quickly

81Overseas Example (Asia Pacific): Concentrating on Boosting
Employees’ Skills
Sysmex Asia Pacific collaborates with outside institutions to give all employees access toonline training via Sysmex University and has set up a monthly e-learning program. By
introducing employee skill development programs and cross-training to encourage mutual
skill-building, the company works to help its employees develop their capabilities.
Alongside systems such as these, each employee’s plan for individual growth is set and theprogress is checked every year.

82Systems to Support Both Work and Child-Rearing
Providing a Host of Leave Systems and Supporting ChildRearing with an In-House Daycare Center
Sysmex Corporation has created diverse programs toprovide support, from pre-natal to child-rearing. In addition
to leave systems for fertility treatments and morning
sickness, we offer child nursing leave until a child reaches
two years of age, a system for shorter working hours until achild reaches junior high school age and a flex-time systemthat differs by type of work. When an employee needs totake time off work to nurse a child, they can do so under aprogram that allows them to use accumulated paid leave in
addition to statutory leave.
In line with the growing demand for male employees toparticipate in childcare, we are considering a system thatwould allow men to take special leave prior to their spousegiving birth, offering two additional days to be taken within
one month of the birth to make any necessary preparations.
Employees are also eligible for "nurturing leave," underwhich they can take special leave of three consecutive days
to care for children up to one year of age.
We have set up Sysmex Kids Park, an in-house daycare
center that accepts babies and toddlers, at Technopark, ourcore R&D base. The center offers short-term as well as
full-time daycare, so that employees whose spouses work on
a part-time basis or who find it difficult to take care of theirchildren due to caretakers’ illness, bereavement or othercircumstances may also temporarily utilize the service.
Furthermore, we provide a reemployment system to enable
employees who were forced to suspend their career paths
due to child-raising with opportunities to resume their work.
In recognition of its planned implementation of such
systems, Sysmex Corporation received the next-generation
support certification logo (nicknamed "Kurumin") from the
Ministry of Health, Labour and Welfare.

83

In-house daycare center, Sysmex
Kids Park

Next-generation support
certification logo (nicknamed"Kurumin")Use of Principal Support Systems (Fiscal 2014)
SystemDescription

Users

Shorter work hoursystem for childrearing

Until a child completes the sixth year of elementary
50
school(Statutory requirement: Until the child reaches three
years of age)

Leave of absence
system(childcare leave,
childbearing leave)

Childcare leave: until the child turns two(Statutory requirement: In principle, until the childreaches one year of age)92

Accumulated paid
leave system

Accumulated paid leave for up to 10 days of annual
paid vacation from previous years can be taken forchild nursing or short-term nursing purposes(Statutory requirement: Five days per fiscal year, 10
if two or more children or subject family members)

26

Reemployment system System to reemploy people who previously left theCompany for childcare or nursing-related reasonsIn-house daycare
system5 enrollment

Daycare center provides care for infants and children 23 children
up to entry into elementary school, which is available
for full-time or temporary childcare.

Other Programs to Support a Work-Life Balance
Supporting Nursing Care, Corporate Citizenship Activities andOthersOne of Sysmex Corporation’s systems to realize a work-life balance among its employees
offers short-term nursing care leave if seven or more consecutive days are required for therecovery of a family member undergoing medical consultations or to accompany family
during hospital stays. This time can be deducted from accumulated paid leave. In April
2014, we introduced a unique "income indemnity system" to provide a nursing care leavestipend, aiming to help offset the loss of income from taking leave, as well as unexpected
expenses, for people taking one month or more of nursing care leave. Furthermore, we havea system for rehiring employees whose careers have been interrupted due to nursing care.
In addition to these, we have introduced a volunteer leave system. This program enables
employees participating in social contribution activities to take up to 10 days of leave in a
year, two of which are accounted for as paid leave. Other programs include donor leave,
whereby bone marrow and other donors receive up to five days of paid leave each time.
Through diverse systems of this nature, Sysmex works to support a work-life balance.

84Supporting a Return to the Workplace Following Leave
In February 2013, Sysmex Corporation introduced a new support system to facilitate thesmooth return to work of employees who have taken childrearing or nursing care leave, andthe employee is loaned a tablet or notebook PC that he or she can use to connect to theSysmex email system and intranet. Three months prior to returning to work the employee
on leave can begin viewing "in-house only" company information. We require employees to
consult with their superiors before commencing use of this system. This provides anopportunity to communicate about working styles after returning to work before that time isactually reached.
Being cut off from the workplace can be an obstacle to a later smooth return. However, thisset-up allows the employee to access Company information at home in real-time, andenables better communications with colleagues through email. This IT-based system helps
the employee get through the leave period without experiencing the torment of feelings ofalienation and loneliness, and also allows the employee to play an active role at theworkplace upon his or her return.

Promoting the Use of Systems that Support a Work-Life
Balance
Sysmex Corporation provides a dedicated site on the Internet to provide easy-to-understandexplanations of its programs for supporting a work-life balance. We also hold briefings topromote awareness. Employees receive individual e-mail notifications about programs that
we particularly wish to encourage.
In fiscal 2014, we conducted briefing sessions at headquarters to raise awareness ofwork-life balance and encourage the use of new leave systems.

Efforts to Enhance Employee Satisfaction
We conduct employee satisfaction surveys targeting all employees of the Sysmex Group in
Japan. Survey results are fed back to individual departments, where they serve as a basis
for enhancing satisfaction levels further. Departments whose survey scores are flat receive
visits from human resources department members, who offer advice on improvements.
Going forward, we will accelerate these initiatives with a view to meeting the employee
satisfaction targets in our Mid-Term Management Plan and Mid-Term CSR Plan.
Overseas Group companies are also conducting employee satisfaction surveys andundertaking initiatives to raise satisfaction levels.

85

Overseas Example (United States): Operating Numerous
Systems to Help Manage Work-Life Balance
Sysmex America caters to diverse working styles by allowing employees to work at homeand provide them with equipment necessary to do so. Employees who wish to may also opt
for part-time or flex-time working arrangements.
To make every day work more comfortable, Sysmex America has a casual dress code. The
company also has in place a number of leave programs in addition to paid leave, such as
congratulatory and condolence leave, family leave and healthcare leave. To encourage
employees to make full use of their vacation time, Sysmex America works with outside
purveyors of travel, shopping and other leisure services to offer employee discounts. If a
family member should suddenly fall ill, employee can receive support from third party
making contracts with Sysmex America in order to facilitate a balance between childcare,nursing care and work.

86Upholding the Freedom of Labor Association and
Recognizing the Right to Collective Bargaining
Participating in the Global Compact and Supporting Core
Labour Standards
Sysmex is a member of the Global Compact and provides clear notice that it respects the
ILO’s Core Labour Standards of the Global Compliance Code. In addition, we uphold thefreedom of association and recognize the right to collective bargaining.
All full-time employees of Sysmex Corporation, except those holding managerial posts andsome in back-office operations, are members of the Sysmex Union, the in-house labor
union. In fiscal 2014, membership accounted for 62.3% of employees. Sysmex Vietnam, as
well as Jinan Sysmex and Sysmex Wuxi in China, have formed labor unions that regularly
conduct collective bargaining.

Labor–Management Dialogue
Engaging in Dialogue with Labor Unions at Group Companies
Sysmex Corporation engaged in collective bargaining with the Sysmex Union in May 2014,agreeing to raise base salaries through weighted allocations based on evaluations and job
grades.
We held 11 council meetings between labor and management in fiscal 2014, discussing such
topics as personnel evaluations, wage optimization and management of working hours.
Group companies overseas also take part in labor–management dialogue according toconditions in each region.

Employee Opinions Reflected in Management
Sysmex conducts a Corporate Culture Survey of all Group employees every two years, andwe analyze replies to questions on over 100 categories to gain an understanding of
unspoken rules and values within the organization, as well as of the degree of effectivenessof various measures. This is useful in discovering and resolving the issues surrounding theGroup.

87

Assurance of Safety and Health at Workplaces
Explicitly Ensuring Occupational Health and Safety in the
Global Compliance Code
Sysmex’s Global Compliance Code clearly states the Company’s goal of "ensuring
occupational health and safety," and we are conducting a number of activities in this vein.

Sysmex Group Compliance Code (Excerpt)
8-4 Assurance of safety and health at workplaces
We must adhere to laws and regulations related to safety and health practices sothat every employee may work with peace of mind, and must maintain and enhance
the mental as well as physical health of every employee so that a safe andcomfortable working environment can be established.

Promoting Cooperation between Executives and Employees on
Occupational Safety and Health
To ensure the health and safety of its workers, Sysmex Corporation has formulated Safety
and Health Regulations. At each business site, we hold regular meetings of the Safety and
Health Committee, which is chaired by the executive at the head of that office, and areattended by employee representatives. These meetings are held in the interest of creating asafe working environment. In addition to examples of near misses and occupational
accidents, the committee tours workplaces to identify risks and, from a risk management
perspective, determine causes and deliberate short- and long-term countermeasures. Healthand safety topics are also discussed at council meetings between labor and management. A
system is in place for reporting to the executive officer in charge of human resources,
thereby ensuring management awareness regarding health and safety risks and dealing withthose risks.
As preparation for an accident or sudden illness, employees are given training on emergency
measures, how to evacuate when an accident occurs and how to handle machinery and raw
materials that are potentially dangerous. We conduct AED training and regular courses totrain citizen emergency response personnel. We also conduct disaster-preparedness
training, and in fiscal 2014 we conducted disaster drills at all locations, including the newly
established i-Square.
In fiscal 2014, the frequency of work-related injuries was 0.58 (3 injuries, 0 deaths) and theseverity rate was 0.00.

88Frequency and Severity of Work-Related Injuries (Sysmex Corporation)

Preventing Overwork
Sysmex Corporation focuses on reducing long working hours, which can impair physical andmental health. In addition to complying with related legislation, we have in place internal
standards for working outside regular hours or on holidays that are stricter than theguidelines set by the Ministry of Health, Labour and Welfare. Employees who exceed thesestandards are required to communicate this fact to their superiors, submit a voluntary checkform and, if necessary, meet with an industrial physician.

Overseas Example (Brazil): Obtaining Certification under
OHSAS 18001*
Sysmex Brazil has acquired OHSAS 18001 certification, an international standard for
occupational health and safety management systems.
* OHSAS 18001: This standard, issued in 1999 based on BS 8800, which was, developed by the British
Standards Institute (BSI) in 1996, consists of some 30 certification bodies and standardization
organizations in various countries.

89

Overseas Example (China): Making Factory Workplaces Safeand Comfortable
At our factory in Wuxi, one of two reagent factories in China, we have introduced personnel
management based on OHSAS 18001. We have established a Safety and Health Committee,
work to determine the status of any work-related injuries and are promoting numerous
initiatives, such as operational improvement and disaster training.
At our other Chinese regent factory, in Jinan, we have sought to create an environment
where employees can work in safety and comfort by ensuring that the workplace is bothsafe and clean. For example, we have mechanized the conveyance of heavy products in theaim of reducing workplace accidents. We also use natural lighting in workplaces, which has arefreshing effect, to create bright and healthy-feeling spaces. We have expanded our
employee welfare facilities, such as the dining hall and recreation areas, and made a biotope
and walkways that impart a refreshing natural feeling.

Maintaining and Improving Health
Maintaining and Improving Employees’ Health
Sysmex Corporation encourages employees to undergo thorough physical examinations andcancer tests for women, in addition to regular health checkups, for the early detection ofillness. Annual Kokoro no Health Checks are also performed annually to confirm mental
health and to uncover any harassment-related situations. We provide channels for healthconsultations throughout the Company, and have in place systems where employees canmeet with industrial physicians and public health nurses. We also have established an
employee assistance program (EAP), enabling employees to seek help easily.
Should long-term leave become necessary, we provide economic compensation and haveintroduced a system to ease employees back into the workplace when they recover,providing an environment where they can work with confidence.
As welfare facilities to encourage health maintenance, on the grounds of the Solution
Center—the Company’s customer service headquarters—Sysmex Corporation provides
sports grounds and tennis courts, as well as a gymnasium with training equipment. We hold
events and seminars as needed to raise employee awareness of physical healthmaintenance. Employee cafeterias also offer healthy menu options.

Holding Health Events
Sysmex has introduced a campaign that takes advantage ofopportunities to heighten employee awareness of health.
In fiscal 2014, we held "wellness fairs" in June and February,
erecting panel displays and offering consultations withmanagerial dieticians. In addition, we conducted a "clean
blood experience" event, where employees could measure
the status of their blood flow. This event was instrumental inraising awareness of blood from a health perspective.

90

Wellness fairOverseas Example (United States): Placing a Fitness RoomThat Is Free to Employees
To encourage health awareness, Sysmex America provides afitness room that employees are free to use.
Each year, the company pays health and fitness allowances
to help employees purchase any equipment they may need.
Furthermore, Sysmex America subsidizes health checks andinfluenza vaccines.
Fitness room91

As a responsible member of society, we play
an active role in resolving environmental
issues and other problems that impact oursociety today.

Policy on Corporate
Citizenship Activities andPhilanthropy
Sysmex contributes actively to society’s
health and local communities. We also
support the voluntary efforts of ouremployees.

Activities to Promote a
Healthy Society
Through activities such as participation in a
medical industry development project, we
take part in a variety of activities tocontribute to the advancement of healthcare
and the creation of a healthy society.

Contributing to Local
Communities
Having operations in locations around theworld, Sysmex takes part in numerous
activities aimed to help resolve the issues
local communities face.

Promoting Employees’Social Contribution
Activities
We have formulated a Social Contribution
Point Program to encourage employees’
active participation in volunteer activities.

92

Policy on Corporate Citizenship Activities andPhilanthropy
Formulation of a Policy Indicating Our Directions on Corporate
Citizenship Activities
Policy on Corporate Citizenship Activities and Philanthropy
Sysmex actively carries out corporate philanthropic activities to promote a healthysociety and vibrant community, and also facilitates our employees’ personalparticipation in volunteer efforts.
Contribution to a healthy society
Sysmex actively utilizes its resources in the healthcare field to carry out
philanthropic activities and promote the building of a healthy society.
Cooperation toward a vibrant local community
Sysmex acts as a responsible and socially-conscious corporate citizen bycooperating with the local community through donations, sponsorships andinvolvement in philanthropic programs.
Facilitation of employees’ volunteer efforts
Sysmex will facilitate employees’ participation in volunteer efforts as citizens of
the world, members of Sysmex group that contribute to healthcare in the world,and emphasize community involvement and development.
Established May 201293

Activities in Japan
Participation in the Kobe Medical Industry Development
Project
The Kobe Medical Industry Development Project aims to create a focal point among
healthcare industries in Kobe through industry–government–academia cooperation.
In March 2014, Sysmex Corporation opened Sysmex IBRI within the Translational ResearchInformatics Center, one of the project’s core facilities. Sysmex IBRI is an open lab that
promotes collaborative research between various medical institutions and companies andaims to further expand our scope of research.

Funding of University Courses
Since fiscal 2004, Sysmex Corporation has contributed funds to a course at the Kobe
University Graduate School of Medicine. Personalized medicine is a challenge that has arisen
in recent years, and this course is aimed at promoting advances in developing and verifying
the utility of new laboratory testing methods, thereby contributing to its realization. In
addition to achieving accuracy in diagnoses, this research also contributes to theestablishment of methodologies that can provide patients with efficient treatment with few
side effects, and we expect the research to make significant contributions to society.
The Nakatani Foundation of Electronic Measuring Technology Advancement, established topromote the development of electronic measuring instruments, became a public interest
incorporated foundation in 2012 and changed its name to the Nakatani Foundation for
Advancement of Measuring Technologies in Biomedical Engineering. This foundation provides
the Nakatani Award and grants for research in the field of biomedical measurements andrelated technologies. Fiscal 2014 marks the foundation’s 30th anniversary of establishment.
In commemoration, the foundation expanded its research grants and extended its grantgiving activities to include grants for overseas study and to promote science education at
the junior and senior high school level.
From the time of its launch through fiscal 2014, the foundation has provided 347 grants
amounting to a cumulative* ￥745.67 million.
* The cumulative amount of grant money includes Special Research Grants, which are for two-year.

94Participating in the Global Health Innovative Technology Fund
Sysmex is working on development of testing technologies targeting malaria, dengue fever,HIV and other diseases, as well as developing products to contribute to the diagnosis ofinfectious diseases in emerging markets and developing countries.
In June 2015, Sysmex decided to participate in the Global Health Innovative Technology(GHIT) Fund*, which states its vision as "one in which the crushing burden of infectious
disease no longer prevents billions of people in the developing world from seeking the levelof prosperity and longevity now common in the industrialized world," and aims to contributeto healthcare in developing countries by applying technological innovations developed inJapan. In addition to supporting the fund through contributions, we will look for ways toutilize our diagnostic reagents technologies for infectious diseases and thus contribute to
global healthcare standardization and quality improvements.
* The Global Health Innovative Technology Fund (GHIT Fund) is an international non-profit organizationthat promotes Japanese drug discovery and development with the aim of controlling infectious diseases
that are particularly widespread in developing countries, including AIDS, tuberculosis, malaria andneglected tropical diseases (NTDs). The organization is the first Japanese public–private partnership,with members including representatives from the Japanese government, the United Nations
Development Programme (UNDP), the pharmaceutical industry, and the Bill & Melinda Gates Foundation.
By promoting collaboration among Japanese and overseas research institutions and providing grantfunding, the GHIT Fund encourages drug discovery and the development of diagnostic reagents.

Continuing to Support Blood Donations
Sysmex, which provides the testing instruments used for blood donations, is also an active
participant in blood donations. Several times each year, employees at Technopark, theKakogawa Factory, the Ono Factory, the Seishin Factory and other facilities cooperate withthe blood donation activities of our local Red Cross center in Hyogo Prefecture.
In fiscal 2014, we conducted blood drives at all our business offices in Japan, including twice
at our new location, i-Square. In total, 247 employees participated in these activities. To
increase our support for the Japanese Red Cross Society as a healthcare company, in fiscal
2014 we registered as a "blood donation supporting company."

Employees participating in a
blood donation

95

Conducting a Training Course for Citizen Emergency
Life-Saving Technicians
Each year, Sysmex Corporation holds a training course forcitizen emergency life-saving technicians at Technopark or
the Solution Center. Certified by the fire department and thecity of Kobe First Aid Support Team (FAST), this course isdesigned to train people in appropriate responses in theevent of illness or injury.
In addition, each year since 2008 we have conducted Basic
Life-Saving Certification for Sysmex Corporation employees.
In fiscal 2014, 11 employees at the Tokyo Office underwent
this training. By encouraging as many people as possible togain life-saving knowledge and skills, we contribute to aconfident society.

Training course for citizen
emergency life-saving techniciansParticipating in International Cooperation Efforts
Sysmex takes part in international cooperation efforts by
Japan’s Ministry of Foreign Affairs and the Japan
International Cooperation Agency (JICA) by providing
materials and instruments (either by extending yen credit or
through outright donation) aimed at raising the level ofhealthcare in emerging and developing countries.
Every year, Sysmex hosts trainees visiting Japan through
JICA programs at its research facilities. In fiscal 2014, we
conducted training four times at i-Square and other facilities
for participants from Africa, Asia Pacific and Central Asia. As
a new initiative, in February 2015 we conducted a training
seminar for JICA personnel. Trainees learned first about theCompany’s personnel systems and then took part in an
exchange of opinions.

JICA trainees

Participating in and Exhibiting at MIRAI EXPO’15
Sysmex participated in and exhibited at MIRAI EXPO’15, an
exhibition for the general citizenry held in Kobe as part of
the General Assembly of the Japan Medical Congress 2015
Kansai during a nine-day period from March 28, 2015.
Operated under the concept of an "exhibition about your lifeand medicine," this participatory event aimed to introduce
recent medical, healthcare and health-related technologies
to people of all ages, from children through adults.
To set the mood for this event, as a local company Sysmex
took part by exhibiting at a joint booth with Kawasaki Heavy
Industries, Ltd., and Medicaroid Corporation. Throughquizzes and various experiential activities at the Sysmex
booth, we prepared a variety of content to help numerous
participants to learn about blood in an enjoyable manner.

96

Children enjoying learning aboutblood

Producing Illustrated Books to Promote Education andAwareness
We produce an illustrated book to promote education and awareness of illness and testing.
We distribute this book to hospitals and clinics, which place it in waiting rooms and otherlocations. Because the book features easy-to-understand explanations in narrative form of
the characteristics of illnesses, as well as their testing and treatment, it draws the interestof children and others who have little knowledge about medicine.

Overseas Activities
Supporting a Program to Commend Excellent Healthcare
Institutions (Indonesia)
In November 2014, Indonesia’s Ministry of Health awarded
particularly excellent healthcare institutions, or"puskesmas," handling regional primary healthcare andconducting health preservation activities. Commendations
were awarded in two categories, "urban" and "rural," withthree puskesmas receiving awards in the former category
and six in the latter.
Through this award program, the Indonesian government isworking to improve the functions of healthcare institutions
within the country. Sysmex Indonesia supported theprogram, along with other healthcare companies.

97

Award ceremony

Contributing to Community Development
Holding events for communication with local community
Every year, Sysmex Corporation invites community residents
to its offices to strengthen its relationship with the local
community. In May 2014, we opened the gardens at
Technopark for an event in which some 600 members of thelocal community joined and strolled about the grounds. On
the day of the event, lectures were held on such topics as"the state of breast cancer treatment and personalized
medicine" and "cervical cancer screening." Participants also
took part in a health check using ASTRIM FIT, our productfor checking estimated blood hemoglobin levels withoutsampling. Through activities such as these, we sought tospark interest in healthcare and testing. In July, Technopark
received an award from the city of Kobe for its efforts topromote citizens’ health and contribute to an improved
awareness of nutrition.
In addition, as in the previous year, in October we opened
the Minato Ijinkan to the general public. A historical edificeconstructed in 1906, the structure had become decrepit andwas closed to the public in 2008. In September 2012,
Sysmex rented the building, performed renovations and now
uses it as a guest house. In addition to making the building
open to the public, we held a photo exhibit introducing thehistory of Kobe and arranged for other enjoyable events.
Some 200 people visited. We plan to open Minato Ijinkan tothe public on a regular basis going forward.

Open gardens at Technopark

Minato Ijinkan

Supporting Various Events and Organizations to Stimulate theLocal Community and Contribute to Cultural Development
Sysmex Corporation supports local development through donations and sponsorship.
For example, Sysmex is a regular sponsor of Kobe Luminarie, an annual illumination eventthat originated as a memorial for the victims of the 1995 Great Hanshin−Awaji Earthquake
and which is held in the hopes of reconstructing/restoring Kobe and all of Hyogo Prefecture.
We also cooperate with the Kobe Oji Zoo’s Animal Sponsor Program. The program invites
individuals and businesses to support the zoo by sponsoring particular species of animal at
the institution. We elected to support the giant pandas. In addition, we support the following
organizations and events.

98

Stimulating the Local Community
44th Kobe Festival
Kobe Seaside Bon Odori
87th Hyogo Prefectural Elementary, Junior High and High School Art Show
Third Hyogo Concert by the Japan Virtuoso Symphony Orchestra
OthersSupporting Culture-Related Programs
C.A.P. Umi no Ue Project
Hyogo Prefectural Museum of Art
Et al.
OthersGlobal Health Innovative Technology Fund (GHIT Fund)"Global Human Resource Development Community" Japan Public–Private PartnershipStudent Study Abroad Program
Japan Association for the United Nations World Food ProgrammeFoundation for Computational Science
Save the Children
Nakatani Foundation for Advancement of Measuring Technologies in Biomedical
Engineering
Kobe Biomedical Innovation Cluster
Hiroshige Kagawa Project for Connection with Huge Paintings Tohoku and Kobe 2015
Et al.

Sponsoring Local Sports TeamTo energize local Kobe sports teams, Sysmex Corporation sponsors Vissel Kobe, a Japanese
professional J. League soccer club.
In addition to promoting the local community, through such initiatives Sysmex aims tocontribute to a healthy community through sports.

Overseas Example (Asia Pacific): Conducting Various Activities
to Address Problems in Local Communities
Sysmex Group companies in the Asia Pacific region take partin various local community contribution activities under theGreener Sysmex Project, seeking to help resolve the issues
faced by local communities.
In fiscal 2014, regional headquarters Sysmex Asia Pacificconducted New Year Helping, a fund-raising activity. The
total of US$7,650 raised through employee donations andcompany contributions went to provide food, powdered milk
and kerosene to 306 destitute households at the start of the
new year.
We also take part in such community activities as thosedescribed below.
At a Business Partner Meeting held in Sri Lanka, wedonated our testing instruments to local hospitals andprovided items for a first aid room to school. (Sysmex
Asia Pacific)

99

Donating testing instruments to
hospitals (Sri Lanka)

To support the local Orang Asli ("local aborigines") a teamof employees contributed by constructing housing andthrough endowments. (Sysmex Malaysia)
We held a dinner party after Ramadan for single mothers
and orphans in the local community. All employees
participated in providing traditional foods and a magic
show. (Sysmex Malaysia)
We provided contributions and conducted fund-raising
activities for an organization supporting children withcancer, heart disease and auditory abnormalities.
(Sysmex New Zealand)Overseas Example (Germany): Contracting out Some Work to
Organizations Supporting People with Disabilities
Sysmex Europe supports initiatives to promote the autonomy of people with disabilities byoutsourcing activities such as sorting materials at its reagent factory to supportingorganizations and welcoming people with disabilities to work on its production lines.

Support for Disaster-Affected Areas
Support for Disaster-Affected Areas in Indonesia and Malaysia
On December 12, 2014, a major landslide occurred inIndonesia’s Banjarnegara region. Some 108 people lost theirlives in the disaster, and 600 people in 105 households
required evacuation. Given this situation, Sysmex Indonesia
conducted a fund-raising event from December 15,
contributing the collected funds to purchase diapers, towels,
toothpaste and other everyday items to send to the affected
area. On December 20, the company and its local distributor
made a contribution to assist people in the disaster-affected
area. Going forward, we plan to continue providing
long-term support.
Also, in December 2014 Sysmex Malaysia collaborated withlocal medical institutions to provide food, drinks and otheremergency items to 100 families affected by flooding on
Malaysia’s eastern seaboard.

100

Providing everyday items to adisaster-affected area inIndonesia

Contributing to the Education of the Next Generation
Supporting the Education of Youth
Sysmex Corporation cooperates in the Try-yaru Week workplace experience program heldfor Hyogo Prefecture junior high school students. We also take part in the Science Fair in
Hyogo, an event participated in by companies, universities and research institutions, atwhich math and science high school students in Hyogo Prefecture annually present theirresearch results.
At the 7th Science Fair in Hyogo, held in February 2015, we provided a health check
experience that involved ASTRIM FIT, our product that measures estimated hemoglobin
levels without the need for blood sampling. We also put up posters explaining our business.
The ASTRIM FIT proved popular, being tried by nearly 200 people.

Hosting Internships and Company Tours
Sysmex Corporation accepts ambitious students on
internship programs. In fiscal 2014, we hosted 75 students
from three universities in Hyogo Prefecture, providing an
opportunity to learn about the role public health nurses playat companies. In addition, we hosted a tour of i-Square, our
new instrument factory, and the Solution Center for 63
junior college students studying laboratory testing. We also
actively host students from overseas. In fiscal 2014, we
accepted three students from the Indian Institute ofTechnology to teach them about Sysmex’s unique
technologies. In addition, 25 students from Cranfield
University in the United Kingdom joined Kobe University
students in a tour of the Sysmex Corporation Solution
Center. This tour was part of a one-week Japanese company
experience program in which students visited multiple
companies.
Sysmex Asia Pacific also conducts company tours forstudents of local technical schools.

101

Student interns from India

Nature Preservation and Clean-up Activities
Forest Conservation Activities
Sysmex, which uses water in its core reagent production activities, recognizes that
contributing to local watershed protection is an important social responsibility. The Company
also aims to contribute to the preservation of biodiversity.
For these reasons, in fiscal 2013 we began taking part in forest maintenance activities basedon the "Enlist the Participation of All Citizens in Creating Woodland" project being promotedby the Hyogo Prefectural Government. To this end, we took responsibility for a two-hectare
portion of the 17-hecatre Kawai Kaiteki Forest near our reagent factory in the city of Ono,
Hyogo Prefecture. We dubbed this portion the "Sysmex Forest" and set about making theSatoyama (a human-influenced natural environment) a place of tranquility for people andwildlife.

Thinning the forest

Sysmex Forest

Clean-up Activities
Employee volunteers from Sysmex’s business offices around Japan take part in efforts toclean areas around their business offices. In fiscal 2014, some 700 employees took part inthese activities.
At Sysmex New Zealand, employees conduct a clean-up activity on Motutapu Island on thecompany’s Volunteer Day. Located in New Zealand’s north, Motutapu Island is known for its
abundant nature.

Employees taking part in clean-up
activities (Sysmex New Zealand)

Employees participating inclean-up activities (Sysmex
Medica)102

Systems to Facilitate Employees’ Efforts toward Social
Contribution
Introduction of a Social Contribution Point Program to
Encourage Employee Volunteer Activities
Sysmex introduced a Social Contribution Point Program in April 2014. Under this program,
employees earn individual points for taking part in social contribution activities, as well as
for participating in social contribution events sponsored by the Company. The Company
makes a donation corresponding to the number of points accumulated at the end of eachfiscal year. Under this program, in fiscal 2014 Sysmex donated ￥970,000 worth of measles
vaccines, antimalarial mosquito nets and emergency medical kits to developing countries via
UNICEF.
The result of the Social Contribution
Program in Fiscal 2014
Approximately 28% of Group employees inJapan participated, a total of 837 people.
A total of ￥972,200 was donated,corresponding to 9,722 points.
Measles vaccines: 10,600 doses
Emergency medical kits: 78
Antimalarial mosquito nets: 770

103

We carry out our business in strict
compliance with laws and regulations, aswell as in adherence to high ethicalstandards. As a responsible member ofsociety, we play an active role in resolving
environmental issues and other problems
that impact our society today.

Environmental Policy
We have formulated an environmental policy
and core behaviors for the creation of afulfilling and healthy society throughenvironmental conservation activities.

Environmental Management
We have obtained international ISO 14001
certification at our major business offices inJapan and overseas, and we undertake
other activities in a planned manner.

Environmentally Conscious
Products and Services
Our products and services comply with laws
and regulations, and we pursue initiatives toreduce environmental impact.

Environmental
Consciousness at Business
Offices
We endeavor to identify and reduce
environmental impact at our businessoffices, including direct and indirect
greenhouse gas emissions, waste discharge
and water use.

Other Environmental
Considerations
We examine the impact of our businesses on
the environment from various angles andintroduce countermeasures as necessary.

Green Procurement
Sysmex promotes green procurement to
reduce the environmental impact of its
products.

Environmental Data
Sysmex quantitatively monitors
environmental burden to efficiently promote
environmental conservation activities.

104

Environmental Policy
By shaping the advancement of healthcare, our global environmental conservation
activities contribute to the creation of a fulfilling and healthy society.

Core behavior
1. We deliver reassurance to all people by carrying out business activities in anenvironmentally conscious manner.
2. We strive to provide eco-friendly products and services while giving careful
thought of environmental issues throughout their life cycles.
3. We strive to conserve energy and resources, reduce wastes, promote recycle andproperly control chemical substances in all business activities.
4. We comply with all applicable national or regional environmental regulations,standards and agreements.
5. We continually improve our environmental conservation activities and work
diligently prevent pollution and minimize the impact our products have on theenvironment.
6. We contribute to society through environmental conservation activities as amember of the community, while educating and raising the environmental
consciousness.
7. We establish environmental objectives and targets consistent with thisenvironmental policy, and measure our performance against them.
Revised May 2009105

Environmental Management System

Promoting Environmental Activities
Sysmex is pursuing groupwide to achieve the targets set in the Sysmex Group
Environmental Action Plan (Sysmex Eco-Vision 2020), which was set in fiscal 2010 andrevised in fiscal 2015.
We have also formulated a new Mid-Term Environmental Action Plan for the fiscal years
2015 to 2017. The plan sets target values for reducing CO2 emissions in Japan domestic andinter-regional transportation. To reflect the effects of improved loading efficiency, we haverevised the measurement units from "per unit of freight ton-km" to "per unit of parent-onlysales."
In fiscal 2013, we established Global Environmental Management Regulations to reinforce
Group environmental management by clarifying the roles and responsibilities of Group
companies. We have assigned a senior executive officer and senior managing director of
Sysmex Corporation as environmental management officer to oversee and control Groupenvironmental management. We have in place a global environmental management system
under which we promote environmental activities in individual regions and fields ofoperation under his instruction.

Mid-term environmental targets (fiscal 2015–2017)
Provide eco-friendly products and services
Reduce CO2 emissions from Japan domestic and inter-regional transportation by
45% (per unit of parent-only sales)
Reduce greenhouse gas emissions at business offices by 40% (per unit ofconsolidated sales)
Achieve a recycle rate of 92% or higher at all business offices
Reduce water usage at reagent factories by 7% (per unit of amount of production)

Acquiring ISO 14001 Certification
Sysmex is working toward the acquisition of ISO 14001, the international standard forenvironmental management, for the Group’s principal affiliated companies. As of April 30,
2015, 22 companies had obtained this certification.
In fiscal 2013, we integrated our certifications for ISO 14001 in Japan, adding Sysmex RA
and Sysmex Medica certifications to those for Sysmex Corporation and Sysmex International
Reagents. In fiscal 2014, we also added i-Square, our newly operational factory. By
centralizing the environmental activities of Group companies in Japan and seeing the stateof progress and issues as a Group, we aim to enhance our management.

106Acquiring ISO 14001 Certification
Company Name
Sysmex Europe

Sysmex Corporation

Sysmex International Reagents

Site

Acquired in

Neumunster Factory

November 1999

Head office

October 2011

Kakogawa Factory

April 2000

Technopark

February 2002

Head officeFebruary 2002

Solution Center

November 2005

i-SquareFebruary 2015

Ono Factory

March 2001

Seishin Factory

June 2007

Sysmex Medica-

March 2001

Sysmex RA-

June 2008

Sysmex Brazil-

May 2006

Sysmex America-

December 2009

Sysmex Reagents America-

December 2009

Sysmex New Zealand-

May 2011

Sysmex Deutschland-

October 2011

Sysmex France-

February 2012

Sysmex India-

March 2012

Sysmex Asia Pacific-

April 2012

Sysmex Spain-

April 2012

Sysmex Middle East-

March 2013

Sysmex Wuxi-

June 2013

Conducting Environmental Auditing
In fiscal 2014, the four Group companies for which certification in Japan has been integrated
conducted evaluation of compliance, internal audits and external audits by a third-party
auditing organization.
The internal audit found two nonconformities, and corrective actions for thesenonconformities were completed. External audits found no nonconformities.

107

Environmental Objectives and Results (Fiscal 2014)

Sysmex Group Environmental Action Plan (Sysmex Eco-Vision2020)/ Mid-term Environmental Objectives
Sysmex Eco-Vision2020 Long-term
Environmental
Objectives(FY2020)(Revised Edition)

Promote eco-friendly
products and service
modelsMid-term
Environmental
Objectives(FY2013 –2015)

Activities/Achievements
in FY 2014

Promoteeco-friendly
products andservice models

Promoted efforts toward
RoHS directive compliance
Promoted productdevelopment for reduced
power consumption
Promoted a switchover ofprotein raw materials usedin reagents from animal
derivatives to artificiallysynthesized protein
Promoted reduction inmaterials used in productcontainers and packaging
Promoting Eco-Friendly
Service Models

Environment
consciousness
in product life
cycle process

For exports, promoted shift
from air to ocean transport
Reduce carbon dioxide
emissions for logistics
by 50% (per unit of
freight ton-km: Japandomestic and interregionaltransportation)*1

Reduce carbon
dioxide emissions
for logistics by
30% (per unit of
freight ton-km:
Japan domestic
and inter-regionaltransportation) *1

108

Fiscal 2014 Result: 0.14
(t-CO2/thousand
ton-kilometers)
Base year (fiscal 2010):
0.14 (t-CO2/thousand
ton-kilometers)
Unchanged against baseyear
(Emissions were down
5.9%, from 5,400 t-CO2 inthe base year to 5,083
t-CO2.)

Reducegreenhouse gas
Reduce greenhouse gas
emissions atemissions at businessbusiness offices
offices by 50%(per unit
by 25% (per unitof consolidated sales)*2
of consolidated
sales)*2

Installed equipment(including thorough air
conditioning controls,
installation of energy
efficient fluorescent lighting,placement of motion
detectors to activate
staircase lighting) as
measures against global
warming (each businessoffice)Purchased electricity frompower companies using
renewables (Sysmex
Europe)Reduced CO2 emissions byusing solar power (Sysmex
Europe Reagent Factory)
Fiscal 2014 result: 7.28
(t-CO2/￥100 million)
Base year (fiscal 2008):
10.07 (t-CO2/￥100 million)
Down 28% against baseyear

Environment
consciousness
at businessofficesAchieve a recycle rateof 93% or higher at all
business offices*3

Achieve a recycle
rate of 90% or
higher at all
business offices*3

Conducted review of waste
disposal companies(Technopark)
Reuse of packaged onoutsourced items (Sysmex
Wuxi)
Fiscal 2014 result: 90.3%

Reduce water usage atreagent factories by
10% (per unit ofamount ofproduction)*4

Reduce water
usage at reagent
factories by 3%(per unit ofamount ofproduction) *4

Installed water purifying
equipment (Jinan Sysmex)
Reused industrial waste
water after treatment(Sysmex India)
Fiscal 2014 result: 21.4
(m3/thousand boxes)
Base year (fiscal 2008):
21.5 (m3/thousand boxes)
Down approximately 1%
against base year

*1 Sysmex Corporation*2 Scope of data: All factories and major business offices[Factories]
Sysmex Corporation (Kakogawa Factory, i-Square), Sysmex International Reagents (Ono Factory,
Seishin Factory), Sysmex Medica, Sysmex RA, Sysmex Europe (Reagent Factory), Sysmex Brazil,
Sysmex Reagents America, Sysmex India, Sysmex Asia Pacific, Jinan Sysmex, Sysmex Wuxi
[Major Business Offices]
Sysmex Corporation (head office, Technopark, Solution Center), Sysmex Europe, Sysmex America,
Sysmex Shanghai, Sysmex Asia Pacific109

*3 Scope of data: All factories and major business offices where products and/or chemical substances arehandled[Factories]
Sysmex Corporation (Kakogawa Factory, i-Square), Sysmex International Reagents (Ono Factory,
Seishin Factory), Sysmex Medica, Sysmex RA, Sysmex Europe (Reagent Factory), Sysmex Brazil,
Sysmex Reagents America, Sysmex India, Sysmex Asia Pacific, Jinan Sysmex, Sysmex Wuxi
[Major Business Offices]
Sysmex Corporation (head office, Technopark, Solution Center)*4 Scope of data: Reagent factories (nine locations)Sysmex International Reagents (Ono Factory, Seishin Factory), Sysmex Europe (Reagent Factory),
Sysmex Brazil, Sysmex Reagents America, Sysmex India, Sysmex Asia Pacific, Jinan Sysmex, Sysmex
Wuxi

110

Reducing the Use of Substances with Environmental Impact

Conforming with Regulations
Application of the revised RoHS Directive* (which was amended in July 2011) to Sysmex's
diagnostic instruments and diagnostic instruments for animals begins from July 2016.
To ensure its compliance with this revised RoHS Directive, Sysmex is conducting partsinspections on products shipped to Europe.
* RoHS Directive: A directive prohibiting the use of hazardous substances in electrical and electronic
devices sold in the European Union. This directive calls for the cessation of use of heavy metals (lead,
cadmium, mercury and hexavalent chromium) and specified bromine containing flame retardants (PBB
and PBDE).

Developing Environmentally Conscious Products
To help reduce energy consumption and waste for its customers, Sysmex undertakes
technological developments aimed at reducing electricity used by its IVD instruments andlowering the amount of reagents used.
To lower the environmental impact generated when transporting its products, Sysmex
strives to make its products more lightweight, with more compact capacity, and use fewer
packaging materials. We are also working to make packaging methods more efficient.

Establishing Eco-Friendly Diagnostic Reagent Raw Material
Production
Sysmex has established a method of producing fromsilkworms the proteins used as raw materials in its
diagnostic reagents. Our protein production contracting
service business using this technology has also been fully
operational since fiscal 2012, and we are already taking
orders from a number of pharmaceutical companies.
In the past, proteins were cultivated with equipment such as
tanks to control for environmental factors (such as sterility,
temperature and oxygen concentrations), using cells frommammals and other animals; the new approach reduces
energy consumption substantially. As silkworms can becultivated at room temperature, simply by using shelves andbreeding containers and providing them with food, we
anticipate energy savings and waste reduction.

111

Silkworms to produce proteinsEco-Friendly Service

Promoting Eco-Friendly Service Models
Sysmex is lowering environmental impact by making service more efficient. For example, in
addition to expanding the functions of the Customer Support Center, we are minimizing
downtime for diagnostic instruments in use by constructing the SNCS (Sysmex Network
Communication Systems) to maintain interactive communication with customers.
This approach enables Sysmex representatives to make customer visits that are regular andeffective, reduce rates of automobile use for service and curtail CO2 emissions.

Reducing CO2 Emissions for Logistics
We are also promoting efforts to reduce CO2 emissions generated in logistics processes. We
are shifting from air to ocean freight when shipping products overseas, but urgent
shipments often require products to be transported by air. We have undertaken initiatives toincrease shipping container loading efficiency and conduct ocean transport in a moreplanned manner to reduce the need for rush shipments. Enhancing our loading simulations
has enabled us to adjust the timing of product shipments, increase our loading ratio inshipping containers and optimize instrument packaging sizes, boosting storage and loading
ratios. In these ways, we are gradually reconfiguring the entire distribution logistics process.
As a result, in fiscal 2014 CO2 emissions fell 7.4% year on year.
CO2 emissions from logistics

Notes: Range of calculation is CO2 from warehouse in Japan to customers within Japan andthat to overseas seaport or airport.

112

Reducing Greenhouse Gas Emissions

Promoting Reductions in Electricity Use
We are promoting various measures at each site, in order toreduce greenhouse gas emissions at our business offices.
At our business offices including factories, we are
implementing energy-saving measures to meet each office’s
characteristics, such as thoroughly monitoring room
temperatures in summer and winter, installation of moving
detectors to activate staircase lighting, and introducing
energy-efficient fluorescent and LED lighting, etc. We haveinstalled demand monitoring functions* to control overall
electricity use in some business offices.

LED lighting (Ono Factory)

As a result of these initiatives, in fiscal 2014 greenhouse gas
emissions (unit per consolidated sales) were down
approximately 9% from the preceding fiscal year.
* Functions for continuously measuring maximum electrical demand(demand value) for 24-hour periods and sounding an alarm if thelevel exceeds target values, as well as reporting on electricity use
on a daily and monthly basis.

Greenhouse gas emissions at business

Some figures have been revised from ones disclosed before, owing to review of the scope.
Notes: Scope of the data: Factories and major business offices[Factories]
Sysmex Corporation (Kakogawa Factory, i-Square), Sysmex International Reagents (OnoFactory, Seishin Factory), Sysmex Medica, Sysmex RA, Sysmex Europe (Reagent Factory),
Sysmex Brazil, Sysmex Reagents America, Sysmex India, Sysmex Asia Pacific, Jinan
Sysmex, Sysmex Wuxi
[Major Business Offices]
Sysmex Corporation (head office, Technopark, Solution Center), Sysmex Europe, Sysmex
America, Sysmex Shanghai, Sysmex Asia Pacific113Reducing Waste

Maintaining Stable Annual Recycling Rates
We are continually striving to reduce waste and increase our recycling rate through such
efforts as reviewing waste disposal companies. Sysmex Wuxi, for example, has worked on
reducing waste by reusing PE bags used for materials packaging in production anddevelopment offices and also for trash bags as housewares. We also reduced waste byautomating production lines Jinan Sysmex. In Japan, we are promoting the use of garbage
disposer to generate fertilizer from garbage at employee cafeterias in business offices thatgenerate substantial amounts of garbage. We are continuously conducting various
approaches at each sites.
Through these approaches, the Group is maintaining a stable recycling rate from year to
year.
Business office recycling rate

Scope of data: All factories and major business offices where products and/or chemical
substances are handled[Factories]
Sysmex Corporation (Kakogawa Factory, i-Square), Sysmex International Reagents (OnoFactory, Seishin Factory), Sysmex Medica, Sysmex RA, Sysmex Europe (Reagent Factory),
Sysmex Brazil, Sysmex Reagents America, Sysmex India, Sysmex Asia Pacific, Jinan
Sysmex, Sysmex Wuxi
[Major Business Offices]
Sysmex Corporation (head office, Technopark, Solution Center)

114

Reducing Waste and Appropriately Processing Wastewater

Promoting Initiatives at Individual Bases
We are working to improve efficiency of water use and reduce water use volume. At Sysmex
India, for example, factory wastewater is purified and used as watering for the green spacein the facility. However, due to the start of operations at our new factory, i-Square, water
use increased. As a result, in fiscal 2014 total water usage was up approximately 6% fromthe previous year. However, water use per unit of production decreased approximately 3%.
Water Use at Reagent Factories

Scope of data: Reagent factories (nine locations)Sysmex International Reagents (Ono Factory, Seishin Factory), Sysmex Europe (Reagent
Factory), Sysmex Brazil, Sysmex Reagents America, Sysmex India, Sysmex Asia Pacific,
Jinan Sysmex, Sysmex Wuxi

Environmental Consideration when Establishing Factories

Introducing Environmentally Conscious Design, Facilities andEquipment, and Operating Processes
When establishing new business offices and factories, we work to minimize environmental
impact resulting from their operation by introducing environmentally conscious design,
facilities and equipment, and operating processes.
A mound of earth near the entrance of i-Square serves as an important symbol for thefactory. Made with excess soil from construction that was left in place rather than being
carted away, the hillock serves as a reminder of reduced environmental impact.

115

Overseas Example (India): The Baddhi Factory of Sysmex
India Places First in a Local Environmental AwardIn April 2014, Sysmex India’s Baddhi Factory was selected as the top recipient in thesmall-scale factory division of the Environment Best Practice Awards, a prestigious local
environmental award.
The Baddhi Factory is situated in the Nalagarh Industrial Zone, one of India’s leadingindustrial zones. For this award, a team of local experts with detailed knowledge ofenvironmental and social topics conducted audits of the 3,000 factories within this zone.
Eight factories conducting particularly outstanding initiatives received this award.

116

Reducing CO2 Emissions from Company Cars in Japan

Raising Driver Awareness and Promoting the Use of MoreFuel-Efficient Vehicles
To reduce CO2 emissions from some 400 company cars in Japan, we are working to visualize
travel distances and fuel used by each Company car and heighten driver awareness. We arealso introducing fuel-efficient vehicles and hybrid cars.
At branches and sales offices in Japan, we are improving fuel efficiency by conducting
eco-driving courses and introducing fuel-efficient vehicles. Such measures have helped toreduce gasoline consumption by 3% year on year, but because of a major increase in theuse of trucks to deliver products to Sysmex Medica, diesel fuel consumption rose 68%. As aresult, fiscal 2014 CO2 emissions by Company cars in Japan were up approximately 1%
from their level one year earlier.

Managing and Processing Harmful Substances

Enforcing Stringent Management and Appropriate Processing
at Business Offices
Sysmex International Reagents uses biological substances as raw materials of products, andTechnopark uses them as experimental materials for research and development. As thesesubstances have infection potential, as a measure of precaution, they are managed strictlysuch as limit of location to storage and use them according to the manual, and furthermore,these substances are carefully segregated from general waste for proper disposal.
For other harmful substances, we work to prevent aerial drift, dispersion and groundwater
permeation through countermeasures addressing both facilities and management methods.
In these ways, we endeavor to keep emissions below statutory standard values. In fiscal
2014, we refurbished waste drop-off sites at the Seishin Factory and introduced new
biochemical oxygen demand (BOD) alarm equipment at the Ono Factory. These systems aim
to prevent the emissions of liquids containing organic matter.

117

Reducing Paper Use

Promoting Digital Data
Sysmex Corporation has introduced tablet computers to promote paperless meetings. Thisapproach reduces paper use and waste volumes, as well as eliminating such processes as
printing and distributing documents prior to meetings. Meeting efficiency is also improved,
as data can be distributed digitally to meeting participants beforehand. We have also
reduced paper use by using digital data rather than paper when presenting drawings ofproduct parts to suppliers.

Promoting Green Procurement

Cooperating with Business Partners to Promote
Environmentally Conscious Procurement
Sysmex has formulated green procurement standards, and works with business partners topromote environmentally conscious procurement. Furthermore, we aim to procure
environmentally conscious parts and materials, and publish on our website the chemical
substances we are reducing or eliminating the use of in our products.

118

Promoting Green Procurement

Formulating Green Procurement Standards
We have formulated green procurement standards, which describe our fundamental stanceon environmental considerations in our procurement activities.

Green Procurement Standards
Through our global corporate activities in the healthcare field, we are contributing to
the creation of a fulfilling and healthy society.
1. Objectives
In accordance with its environmental policy, the Sysmex Group strives to fulfill its
corporate social responsibility by promoting global environment conservation.
Accordingly, we endeavor to promote the manufacture of environmentally friendly
products by encouraging the procurement of raw materials and parts that have
low impact on the global environment. Sysmex aims to cultivate motivatedenvironmental conservation activities among our suppliers and enable us to work
together toward the development of a sustainable society.
2. Green Procurement Initiatives
The Sysmex Group practices "green procurement" to ensure that its procurement
activities promote a reduction in the environmental impact of the Company’s
products and reduce the environmental impact of all production activities,
including those of our suppliers. We promote the two items below as specificgreen procurement initiatives.
1） Promote the procurement of raw materials and parts that have lower
environmental impact.
2） Expand business with suppliers that take a proactive approach toward
environmental conservation.
3. Scope of Application
These standards apply to the procurement of raw materials, parts and products by
Sysmex Group companies.
4. Control of Chemical Substances in Products
The Sysmex Group requires the selection of materials and parts for the products it
develops and produces to be based not only on the requisite quality, performanceand economic feasibility, but also on the minimization of environmental impact.
Therefore, raw materials and parts that do not employ the chemical substances
described below shall be adopted:
1） Substances prohibited according to restrictions on chemical substances
contained in products shall not be contained.
2） Those in which the chemical substance amounts defined under restrictions on
chemical substances contained in products shall be monitored.
3） Those for which the environmental impact of the chemical substance in termsof atmospheric pollution, water contamination, soil pollution, etc. shall be low.
4） Environmental impact data for materials shall be disclosed.

1195） In relation to packaging materials, when all of the aforementioned factors are
identical, that with the lowest volume of contained chemical substances shall beselected.
Revised November 2014

Working with Suppliers

According High Evaluations to Procurement Partners
Undertaking Motivated Environmental Conservation Activities
Sysmex is working proactively to address the important societal issue of environmental
protection. We ask our business partners to fully understand the importance of our activities
and cooperate with green procurement. Based on its green procurement standards, inaddition to quality, price, delivery schedules and technological development capabilities,
Sysmex accords high evaluations to suppliers that undertake motivated environmental
conservation activities. We ask our suppliers for their cooperation on the following points.

1. Configuration and Operation of Environmental Management Systems
When commencing transactions with business partners, the Sysmex Group
indicates clearly the importance it places on motivated environmental
conservation activities. To this end, we confirm whether potential suppliers have inplace environmental management systems certified by third parties.
1 ）ISO 14001 certification
2 ）Simplified environmental management system certification
2. Provision of Environmental Information on Raw Materials and Parts
The Sysmex Group asks suppliers to provide the following environmental reports
in cooperation with Sysmex’s environmental conservation activities.
1 ）Data on harmful chemical substances contained in raw materials and parts
2 ）Certification against the use of substances targeted by European RoHS
regulations
3 ）Information on raw materials and parts compliant with European RoHS
regulations
3. Environmental Measures by Suppliers to Their Outsourcing Partners
The Sysmex Group also asks suppliers to request that their outsourcing partners
configure environmental management systems and cooperate in providing
environmental information. We ask suppliers to take responsibility for managing
their outsourcing partners in this respect.
Revised November 2014120

Limiting the Use of Chemical substances in Products

Specifying Prohibited Substances, Substances to Be Reduced
and Target Countries
Based on its green procurement standards, Sysmex publishes on our website the dealing
with chemical substances (substances with environmental impact) contained in the products
it manufactures and sells, as well as their constituent parts, devices and materials.

121

Environmental Impact of Business Activities

INPUT
Fiscal 2013

Fiscal 2014

Electricity use (thousands kWh)

34,51935,988City gas (thousands m3)

1,185

852

LPG (m3)

5,671

6,268

LNG (m3 )00

Heavy oil (kL)00Kerosene (kL)

68

70

Diesel oil (kL)19

19

Gasoline for domestic fleet (kL)

795

778

Diesel for domestic fleet (kL)

11.7

19.7

Water use (thousands m3)

346

368

Office paper (t)5049PRTR (t)

7.9

0.15

OUTPUT
Fiscal 2013

Fiscal 2014

Greenhouse gas emissions frombusiness offices (t-CO2)

20,194

21,472CO2 emissions from domestic company
cars (t-CO2)

1,830

1,856

Total waste emissions (t)

1,274

1,353

Recycling rate (%)

89.1

90.0

Wastewater volume (thousands m3)

144

164

PRTR (t)

4.8

0

122

Factories, all Sysmex Corporation business offices, affiliated companies in Japan and regional
headquarters[Factories] Kakogawa Factory, i-Square, Sysmex International Reagents (Ono Factory, Seishin Factory),
Sysmex Medica, Sysmex RA, Sysmex Europe (Reagent Factory), Sysmex Reagents America, Sysmex
Brazil, Sysmex Asia Pacific, Sysmex India, Jinan Sysmex, Sysmex Wuxi
[Other Sysmex Corporation Business Offices] Head office, Technopark, Solution Center, offices,branches, sales offices and service centers (Sendai, Sapporo, Morioka, Kita Kanto, Nagano, Niigata,
Tokyo, Chiba, Nagoya, Shizuoka, Kanazawa, Osaka, Kyoto, Kobe, Hiroshima, Takamatsu, Okayama,
Fukuoka, Kagoshima, Metropolitan Area Service Center), R&D Center, Protein Development Center,
BMA Laboratory
Other affiliated companies in Japan: Sysmex CNA
Regional headquarters: Sysmex Europe, Sysmex America, Sysmex Shanghai, Sysmex Asia Pacific
Factories and all Sysmex Corporation business offices (recycling rates exclude offices, branches, sales
offices and service centers) (Refer to 1.)
Factories and major business offices where products and/or chemical substances are handled[Factories] (Refer to 1.)[Business Offices] Technopark, Solution Center
Factories in Japan and all Sysmex Corporation business offices[Factories in Japan] Kakogawa Factory, i-Square, Sysmex International Reagents (Ono Factory, Seishin
Factory), Sysmex Medica, Sysmex RA[Other Sysmex Corporation Business Offices] (Refer to 1.)
Domestic Group business offices with ISO 14001 certification
Sysmex Corporation (head office, Technopark, Solution Center, Kakogawa Factory, i-Square), Sysmex
International Reagents (Ono Factory, Seishin Factory), Sysmex Medica, Sysmex RA

123

ISO 26000
The chart below includes the seven core subjects of the ISO 26000* and indicates thelocation of "Sysmex Sustainability Report" that correspond to individual subjects.
* ISO, the International Organization for Standardization, released an International Standard providing
guidelines for social responsibility named ISO 26000 in November 2010.

Core Subjects
Organizational Governance

Location
P35 Corporate Governance P20 CSR Management
P3 Message from the Chairman and CEO

Human Rights

P73 Involvement with Employees

Labor Practices

P73 Involvement with Employees

The Environment

P104 Environmental Conservation Activities
P9 Highlight 2

Fair Operating Practices

P42 Compliance P69 Involvement with Business Partners

Consumer Issues

P53 Involvement with Customers P7 Highlight 1

Community Involvement andDevelopment

P92 Corporate Citizenship Activities P11 Highlight 3

GRI Sustainability Reporting Guidelines
The chart below includes the categories for disclosure required under the GRI* Sustainability
Reporting Guidelines, Edition 3.1 and indicates the website that correspond to individual
categories.
* GRI is an acronym for the Global Reporting Initiative. GRI was established in 1997 as an international
institution to create and disseminate international guidelines related to corporate sustainability
reporting.

GRI Sustainability Reporting Guidelines, Edition 3.1

Location

Strategy and Analysis
1.1Statement from the most senior decisionmaker ofthe organization (e.g., CEO, chair, or equivalentsenior position) about the relevance of sustainability
to the organization and its strategy.

P3 Message from the
Chairman and CEO

1.2

Description of key impacts, risks, and opportunities.

P3 Message from the
Chairman and CEO
Website: Investor
Relations124Organizational Profile
2.1

Name of the organization.

Website: Company
Information

2.2

Primary brands, products, and/or services.

Website: Company
Information

2.3

Operational structure of the organization, including
main divisions, operating companies, subsidiaries,
and joint ventures.

Website: Company
Information

2.4

Location of organization's headquarters.

Website: Company
Information

2.5

Number of countries where the organization
operates, and names of countries with either major
operations or that are specifically relevant to thesustainability issues covered in the report.

Website: Company
Information

2.6

Nature of ownership and legal form.

Website: Investor
Relations

2.7

Markets served (including geographic breakdown,
sectors served, and types ofcustomers/beneficiaries).

Website: Company
Information

2.8

Scale of the reporting organization.

Website: Company
Information

2.9

Significant changes during the reporting period
regarding size, structure, or ownership.

Website: Investor
Relations

2.10

Awards received in the reporting period.

P30 External
Evaluation

P3 Message from the
Chairman and CEO

Report Profile
3.1

Reporting period (e.g., fiscal/calendar year) for
information provided.

P1 Editorial Policy

3.2

Date of most recent previous report (if any).

P1 Editorial Policy

3.3

Reporting cycle (annual, biennial, etc.)

P1 Editorial Policy

3.4

Contact point for questions regarding the report orits contents.

P1 Editorial Policy

Report Scope and Boundary
3.5

Process for defining report content.

3.6

Boundary of the report (e.g., countries, divisions,subsidiaries, leased facilities, joint ventures,
suppliers). See GRI Boundary Protocol for further
guidance.

P1 Editorial Policy

3.7

State any specific limitations on the scope orboundary of the report.

P113 Environmental
Consciousness at
Business Offices
P117 Other
Environmental
Considerations
P119 Green
Procurement
P122 Environmental
Data

125

3.8

Basis for reporting on joint ventures, subsidiaries,
leased facilities, outsourced operations, and otherentities that can significantly affect comparability
from period to period and/or between organizations.

Website: Investor
Relations

3.9

Data measurement techniques and the bases ofcalculations, including assumptions and techniques
underlying estimations applied to the compilation of
the Indicators and other information in the report.

P1 Editorial Policy

3.10

Explanation of the effect of any re-statements of
information provided in earlier reports, and thereasons for such re-statement (e.g., mergers/
acquisitions, change of base years/periods, natureof business, measurement methods).

3.11

Significant changes from previous reporting periodsin the scope, boundary, or measurement methods
applied in the report.

GRI CONTENT INDEX
3.12

Table identifying the location of the Standard
Disclosures in the report.

P124 Guideline
Comparative Table

ASSURANCE
3.13

Policy and current practice with regard to seeking
external assurance for the report. If not included in
the assurance report accompanying thesustainability report, explain the scope and basis ofany external assurance provided. Also explain therelationship between the reporting organization andthe assurance provider(s).

GOVERNANCE
4.1

Governance structure of the organization, including
committees under the highest governance body
responsible for specific tasks, such as setting
strategy or organizational oversight.

P35 Corporate
Governance

4.2

Indicate whether the Chair of the highest
governance body is also an executive officer.

P35 Corporate
Governance

4.3

For organizations that have a unitary board
structure, state the number and gender of membersof the highest governance body that are
independent and/or non-executive members.

P35 Corporate
Governance

4.4

Mechanisms for shareholders and employees toprovide recommendations or direction to the highest
governance body.

P35 Corporate
Governance

4.5

Linkage between compensation for members of thehighest governance body, senior managers, andexecutives (including departure arrangements), andthe organization's performance (including social andenvironmental performance).

P35 Corporate
Governance

4.6

Processes in place for the highest governance bodyto ensure conflicts of interest are avoided.

P35 Corporate
Governance126

P87 Respecting
Workers’ Rights

4.7

Process for determining the composition,
qualifications, and expertise of the members of thehighest governance body and its
committees,including any consideration of genderand other indicators of diversity.

P35 Corporate
Governance

4.8

Internally developed statements of mission orvalues, codes of conduct, and principles relevant toeconomic, environmental, and social performanceand the status of their implementation.

P2 Corporate
Philosophy and Core
Behaviors
P42 Compliance
P54 Ensuring Quality
and Safety
P69 Involvement with
Business Partners
P93 Policy on
Corporate Citizenship
Activities andPhilanthropy
P105 Environmental
PolicyP119 Green
Procurement

4.9

4.10

Procedures of the highest governance body foroverseeing the organization's identification andmanagement of economic, environmental, and social
performance, including relevant risks andopportunities, and adherence or compliance withinternationally agreed standards, codes of conduct,
and principles.

P20 CSR Management

Processes for evaluating the highest governancebody's own performance, particularly with respect toeconomic, environmental, and social performance.

P35 Corporate
Governance

P22 Mid-term CSR Plan
P106 Environmental
Management

P106 Environmental
Management

COMMITMENTS TO EXTERNAL INITIATIVES
Explanation of whether and how the precautionary
approach or principle is addressed by theorganization.

P20 CSR Management

4.12

Externally developed economic, environmental, andsocial charters, principles, or other initiatives towhich the organization subscribes or endorses.

P20 CSR Management

4.13

Memberships in associations and/or
national/international advocacy organizations.

4.11

P22 Mid-term CSR Plan
P106 Environmental
Management

STAKEHOLDER ENGAGEMENT
4.14

List of stakeholder groups engaged by theorganization.

P24 Results of
Dialogue with
Stakeholders

4.15

Basis for identification and selection of stakeholders
with whom to engage.

P20 CSR Management

127

4.16

Approaches to stakeholder engagement, including
frequency of engagement by type and by
stakeholder group.

4.17

P20 CSR Management
P24 Results of
Dialogue with
Stakeholders

Key topics and concerns that have been raised
through stakeholder engagement, and how theorganization has responded to those key topics andconcerns, including through its reporting.

Economic
P3 Message from the
Chairman and CEO

Management Approach
ECONOMIC PERFORMANCE
EC1

CORE Direct economic value generated and distributed,
including revenues, operating costs, employeecompensation, donations and other community
investments, retained earnings, and payments tocapital providers and governments.

EC2

CORE Financial implications and other risks andopportunities for the organization's activities due toclimate change.

EC3

CORE Coverage of the organization's defined benefit plan
obligations.

EC4

CORE Significant financial assistance received fromgovernment.

Website: Investor
Relations

MARKET PRESENCE
EC5

ADD

Range of ratios of standard entry level wage by
gender compared to local minimum wage atsignificant locations of operation.

EC6

CORE Policy, practices, and proportion of spending on
locally-based suppliers at significant locations ofoperation.

EC7

CORE Procedures for local hiring and proportion of senior
management hired from the local community at
locations of significant operation.

P69 Involvement with
Business Partners

INDIRECT ECONOMIC IMPACTS
EC8

EC9

CORE Development and impact of infrastructure
investments and services provided primarily for
public benefit through commercial, inkind, or pro
bono engagement.
ADD

Understanding and describing significant indirect
economic impacts, including the extent of impacts.

128

P94 Activities toPromote a Healthy
Society
P98 Contributing toLocal Communities

Environmental
P3 Message from the
Chairman and CEO

Management Approach
MATERIALS
EN1

CORE Materials used by weight or volume.

EN2

CORE Percentage of materials used that are recycled input
materials.

ENERGY
EN3

CORE Direct energy consumption by primary energy
source.

P122 Environmental
Data

EN4

CORE Indirect energy consumption by primary source.

P122 Environmental
Data

EN5

ADD

Energy saved due to conservation and efficiency
improvements.

P122 Environmental
Data

EN6

ADD

Initiatives to provide energy-efficient or renewableenergy based products and services, and reductions
in energy requirements as a result of these
initiatives.

P111 Environmentally
Conscious Products
and Services

EN7

ADD

Initiatives to reduce indirect energy consumption
and reductions achieved.

P111 Environmentally
Conscious Products
and Services

WATER
EN8

CORE Total water withdrawal by source.

EN9

ADD

EN10 ADDP122 Environmental
Data

Water sources significantly affected by withdrawal of No incident
water.
Percentage and total volume of water recycled andreused.

BIODIVERSITY
EN11 CORE Location and size of land owned, leased, managed
in, or adjacent to, protected areas and areas of highbiodiversity value outside protected areas.

P98 Contributing toLocal Communities

EN12 CORE Description of significant impacts of activities,
products, and services on biodiversity in protectedareas and areas of high biodiversity value outside
protected areas.

P98 Contributing toLocal Communities

EN13 ADD

Habitats protected or restored.

P98 Contributing toLocal Communities

EN14 ADD

Strategies, current actions, and future plans for
managing impacts on biodiversity.

EN15 ADD

Number of IUCN Red List species and national
conservation list species with habitats in areas
affected by operations, by level of extinction risk.

No incident

EMISSIONS, EFFLUENTS, AND WASTE
EN16 CORE Total direct and indirect greenhouse gas emissions
by weight.

129

P122 Environmental
Data

EN17 CORE Other relevant indirect greenhouse gas emissions byweight.

P113 Environmental
Consciousness at
Business Offices

EN18 ADD

Initiatives to reduce greenhouse gas emissions andreductions achieved.

P113 Environmental
Consciousness at
Business Offices

EN19 CORE Emissions of ozone-depleting substances by weight.

P113 Environmental
Consciousness at
Business Offices

EN20 CORE NO, SO, and other significant air emissions by type
and weight.

Non-disclosure becauseof small amount ofemissions

EN21 CORE Total water discharge by quality and destination.

P122 Environmental
Data

EN22 CORE Total weight of waste by type and disposal method.

P122 Environmental
Data

EN23 CORE Total number and volume of significant spills.

P106 Environmental
Management

EN24 ADD

No incident
Weight of transported, imported, exported, or
treated waste deemed hazardous under the terms of
the Basel Convention Annex I, II, III, and VIII, andpercentage of transported waste shippedinternationally.

EN25 ADD

Identity, size, protected status, and biodiversity
value of water bodies and related habitats
significantly affected by the reporting organization's
discharges of water and runoff.

No incident

PRODUCTS AND SERVICES
EN26 CORE Initiatives to mitigate environmental impacts ofproducts and services, and extent of impact
mitigation.

P111 Environmentally
Conscious Products
and Services
P113 Environmental
Consciousness at
Business Offices
P117 Other
Environmental
Considerations
P122 Environmental
Data

EN27 CORE Percentage of products sold and their packaging
materials that are reclaimed by category.
COMPLIANCE
EN28 CORE Monetary value of significant fines and total number No incidentof non-monetary sanctions for noncompliance withenvironmental laws and regulations.

130

TRANSPORT
EN29 ADD

Significant environmental impacts of transporting
products and other goods and materials used for theorganization's operations, and transporting
members of the workforce.

P111 Environmentally
Conscious Products
and Services
P117 Other
Environmental
Considerations

OVERALL
EN30 ADD

Total environmental protection expenditures andinvestments by type.

SocialLabor Practices and Decent WorkP3 Message from the
Chairman and CEO

Management Approach
EMPLOYMENTLA1CORE Total workforce by employment type, employment
contract, and region, broken down by gender

P26 Summary of CSR
Data

LA2

CORE Total number and rate of new employee hires andemployee turnover by age group, gender, andregion.

P77 Employee
Evaluation, Treatment,
and Human Resource
Development

LA3

CORE Benefits provided to full-time employees that are
not provided to temporary or part-time employees,
by significant locations of operation.

LA15 CORE Return to work and retention rates after parental
leave, by gender.

P26 Summary of CSR
Data

LABOR / MANAGEMENT RELATIONS
LA4CORE Percentage of employees covered by collective
bargaining agreements.

LA5

CORE Minimum notice period(s) regarding operationalchanges, including whether it is specified incollective agreements.

P87 Respecting
Workers’ Rights

OCCUPATIONAL HEALTH AND SAFETY
LA6

ADD

Percentage of total workforce represented in formal
joint management–worker health and safetycommittees that help monitor and advise on
occupational health and safety programs.

P87 Respecting
Workers’ Rights
P88 Considering Safety
and Health

CORE Rates of injury, occupational diseases, lost days, andabsenteeism, and number of workrelated fatalities
by region and by gender.

P88 Considering Safety
and Health

LA8

CORE Education, training, counseling, prevention, andrisk-control programs in place to assist workforce
members, their families, or community members
regarding serious diseases.

P88 Considering Safety
and Health

LA9

ADD

P87 Respecting
Workers’ Rights

LA7

Health and safety topics covered in formal
agreements with trade unions.

P26 Summary of CSR
Data

P88 Considering Safety
and Health131

TRAINING AND EDUCATION
LA10 CORE Average hours of training per year per employee by
gender, and by employee category.

P77 Employee
Evaluation, Treatment,
and Human Resource
Development

LA11 ADD

Programs for skills management and lifelong
learning that support the continued employability of
employees and assist them in managing career
endings.

P77 Employee
Evaluation, Treatment,
and Human Resource
Development

LA12 ADD

Percentage of employees receiving regularperformance and career development reviews, bygender.

P77 Employee
Evaluation, Treatment,
and Human Resource
Development

DIVERSITY AND EQUAL OPPORTUNITY
LA13 CORE Composition of governance bodies and breakdown of
employees per employee category according togender, age group, minority group membership, andother indicators of diversity.

P26 Summary of CSR
Data

EQUAL REMUNERATION FOR WOMEN AND MEN
LA14 CORE Ratio of basic salary and remuneration of women tomen by employee category, by significant locationsof operation.
Human Rights
P3 Message from the
Chairman and CEO

Management Approach
INVESTMENT AND PROCUREMENT PRACTICES
HR1

CORE Percentage and total number of significant
investment agreements and contracts that include
clauses incorporating human rights concerns, or thathave undergone human rights screening.

HR2

CORE Percentage of significant suppliers, contractors andother business partners that have undergone humanrights screening, and actions taken.

P69 Involvement with
Business Partners

HR3

CORE Total hours of employee training on policies andprocedures concerning aspects of human rights thatare relevant to operations, including the percentageof employees trained.

P42 Compliance

NON-DISCRIMINATION
HR4CORE Total number of incidents of discrimination andcorrective actions taken.

FREEDOM OF ASSOCIATION AND COLLECTIVE BARGAINING
HR5CORE Operations and significant suppliers identified inwhich the right to exercise freedom of associationand collective bargaining may be voilated or atsignificant risk, and actions taken to support theserights.

132

P74 Respecting Human
Rights and Diversity

CHILD LABOR
HR6CORE Operations and significant suppliers identified ashaving significant risk for incidents of child labor,
and measures taken to contribute to the effective
abolition of child labor.

P74 Respecting Human
Rights and Diversity
P69 Involvement with
Business Partners

FORCED AND COMPULSORY LABOR
HR7CORE Operations and significant suppliers identified ashaving significant risk for incidents of forced orcompulsory labor, and measures to contribute to theelimination of all forms of forced or compulsory
labor.

P74 Respecting Human
Rights and Diversity
P69 Involvement with
Business Partners

SECURITY PRACTICES
HR8

ADD

Percentage of security personnel trained in theorganization's policies or procedures concerning
aspects of human rights that are relevant tooperations.

INDIGENOUS RIGHTS
HR9

ADD

Total number of incidents of violations involving
rights of indigenous people and actions taken.

ASSESSMENT
HR10 CORE Percentage and total number of operations thathave been subject to human rights reviews and/or
impact assessments.
REMEDIATION
HR11 CORE Number of grievances related to human rights filed,addressed and resolved through formal grievancemechanisms.
Society
P3 Message from the
Chairman and CEO

Management Approach
LOCAL COMMUNITY
SO1

CORE Percentage of operations with implemented local
community engagement, impact assessments, anddevelopment programs.

SO9

CORE Operations with significant potential or actual
negative impacts on local communities.

SO10 CORE Prevention and mitigation measures implemented inoperations with significant potential or actual
negative impacts on local communities.
CORRUPTION
SO2CORE Percentage and total number of business units
analyzed for risks related to corruption.

SO3

CORE Percentage of employees trained in organization's
anti-corruption policies and procedures.

P74 Respecting Human
Rights and Diversity
P69 Involvement with
Business Partners

SO4

CORE Actions taken in response to incidents of corruption.

133

PUBLIC POLICY
SO5CORE Public policy positions and participation in public
policy development and lobbying.

SO6

ADD

Total value of financial and in-kind contributions topolitical parties, politicians, and related institutions
by country.

ANTI-COMPETITIVE BEHAVIOR
SO7

ADD

Total number of legal actions for anticompetitive
behavior, anti-trust, and monopoly practices andtheir outcomes.

COMPLIANCE
SO8CORE Monetary value of significant fines and total number No incidentof non-monetary sanctions for noncompliance withlaws and regulations.

Product Responsibility
P3 Message from the
Chairman and CEO

Management Approach
CUSTOMER HEALTH AND SAFETY
PR1

CORE Life cycle stages in which health and safety impacts
of products and services are assessed for
improvement, and percentage of significant products
and services categories subject to such procedures.

P54 Ensuring Quality
and Safety

PR2

ADD

P54 Ensuring Quality
and Safety

Total number of incidents of non-compliance withregulations and voluntary codes concerning healthand safety impacts of products and services during
their life cycle, by type of outcomes.

PRODUCT AND SERVICE LABELING
PR3

CORE Type of product and service information required byprocedures, and percentage of significant products
and services subject to such information
requirements.

PR4

ADD

Total number of incidents of non-compliance withregulations and voluntary codes concerning productand service information and labeling, by type ofoutcomes.

PR5

ADD

Practices related to customer satisfaction, including
results of surveys measuring customer satisfaction.

P58 After-Sales
Support / Scientific
Activities
P63 Enhancing
Customer Satisfaction
and Third-Party
Evaluations

MARKETING COMMUNICATIONSPR6CORE Programs for adherence to laws, standards, andvoluntary codes related to marketing
communications, including advertising, promotion,and sponsorship.

134

P42 Compliance

PR7

ADD

Total number of incidents of non-compliance withregulations and voluntary codes concerningmarketing communications, including advertising,promotion, and sponsorship by type of outcomes.

CUSTOMER PRIVACY
PR8

ADD

Total number of substantiated complaints regarding
breaches of customer privacy and losses ofcustomer data.

COMPLIANCE
PR9CORE Monetary value of significant fines for
No incident
noncompliance with laws and regulations concerning
the provision and use of products and services.

135Independent Opinion

On Reading the Sysmex
Sustainability Report 2015
Katsuhiko Kokubu
Professor, Graduate School of Business Administration,
Kobe University

Addressing Social Issues through Main Businesses
By providing the market with a variety of testing instruments, Sysmex helps to alleviate the burden
on patients, as well as on the technologists who perform testing.
Also, as “Highlight 1” points out, ongoing efforts to reduce the amount of space instruments
require compared with existing models also encourages the proliferation of these instruments.
Reducing the amount of pain and effort associated with testing and providing instruments that requireless space leads to less pain and suffering for many people. I applaud Sysmex highly for developing
new products with these objectives in mind, thereby undertaking CSR activities as part of its
main business.

Global CSR Activities
Sysmex is a global company with bases in locations around the world. Via CSR activities through its
main business and its volunteer efforts, Sysmex introduces the status of its own initiatives in eachregion. I find it wonderful to see the initiatives the Company’s global employees are undertaking of
their own accord. It is important to conduct activities that match the needs of individual regions,but if it were to undertake initiatives in collaboration with local communities as a global company
under the Sysmex name, I believe this would be an embodiment of Sysmex’s fundamental policy ofcooperative endeavors and bring even more energy to bear.

Materiality and Establishing Indicators
Sysmex’s CSR activities are arranged and described by stakeholder group. This approach has theadvantage of making it easy to access information in areas of particular interest, but to me it seems
difficult to ascertain their level of importance and priority. To promote the “Sysmex Way,” I believe
the next step would be to identify activities that Sysmex considers important and those that society
requests, and then to disclose their materiality for Sysmex. Publicizing key performance indicators(KPIs) in line with these issues would make it easier to track progress and demonstrate to people
outside the Company Sysmex’s state of progress on CSR management.

Integrated Reporting in the Digest Version
In the world of CSR reporting, there is an increasing focus on “integrated reports,” which reportbriefly on both financial and CSR information. Sysmex’s “Digest Version” focuses strictly on CSR.
I believe the time may have come to combine this with financial reporting and move toward an
integrated report. This would require an editorial policy that takes institutional investors into account,but I believe it would also lead to a higher level of reporting of CSR information.

136

Corporate Information(As of March 31, 2015)

Corporate Overview
Company name Sysmex Corporation
EstablishedFebruary 20, 1968

Paid-in capital¥10,483.33 million

Representative

Hisashi Ietsugu, Chairman and CEO

Head Office

1-5-1, Wakinohama-Kaigandori, Chuo-ku,
Kobe 651-0073, Japan

Line of business

Development, manufacture, sales, and export/importof laboratory testing instruments, reagents, andrelated software

Operating Income

Net Sales(¥ million)(¥ million)

221,376

44,411

184,538
32,870145,577
124,694 134,743

2010

2011

2012

2013 2014(FY)

Net Income

18,28819,205 21,804

2010

2011

2012

2013 2014(FY)

Number of Employees(¥ million)

26,63820,573
11,411

12,007

2010

2011

4,932

5,314

5,594

2011

2012

6,211

6,739

14,16520122013 2014

2010

(FY)

2013 2014(FY)

Note: Including contract workers and part-time employees

Information Available
on the Website
Comprehensive Information Provided
on the CSR Site
Sysmex CSR

SearchMessage from the Chairman and CEO
Sysmex’s CSR Activities• CSR Management • Mid-Term CSR Plan
• Results of Dialogue with Stakeholders• Summary of CSR Data • External Evaluation

Corporate GovernanceCompliance
Risk Management
2015 CSR Activity Highlights
Expanding our Lineup of Immunoassay Analyzers
and Reagents That Contribute to the Early
Detection and Treatment of Infectious Diseases,
Cancer and Other Diseases
2 Opening of i-Square, a Core Instrument
Factory Focused on Delivering High-Quality
Products in a Stable Manner
3 Employee Volunteers Conduct Fund-RaisingCampaign to Help Fight Cancer
1

137

Involvement with Stakeholders• Involvement with Customers•Ensuring Quality and Safety•After-Sales Support/Scientific Activities• Stable Supply•Enhancing Customer Satisfaction and
Third-Party Evaluations•Contributing to Resolution of Healthcare Issues• Involvement with Shareholders• Involvement with Business Partners• Involvement with Employees•Respecting Human Rights and Diversity•Employee Evaluation, Treatment,
and Human Resource Development•Ensuring a Work-Life Balance•Respecting Workers’ Rights•Considering Safety and HealthCorporate Citizenship Activities• Policy on Corporate Citizenship Activities
and Philanthropy• Activities to Promote a Healthy Society• Contributing to Local Communities• Promoting Employees’ Social
Contribution Activities

Net Sales by Destination/Regional Subsidiaries and Affiliates¥40.6

Employees by Region

billionJapan

10 companies¥49.6

billion968

Americas

10 companies¥63.6

29 companies

¥49.8

EMEA*

billionbillion*Europe, the Middle East
and Africa

billion

Asia Pacific

13 companies

Environmental Conservation Activities• Environmental Policy• Environmental Management• Environmentally Conscious Products and Services• Environmental Consciousness at Business Offices• Other Environmental Considerations• Green Procurement• Environmental Data

Sysmex Sustainability Report
Guideline Comparative Table

138

1,756
394

China

4 companies

¥17.8

3,085

536

1-5-1, Wakinohama-Kaigandori, Chuo-ku, Kobe 651-0073, Japan
Tel +81-78-265-0500 Fax +81-78-265-0524