MEIDENSHA REPORT 2022

MEIDENSHA REPORT 2022

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

www.meidensha.com

Meidensha’s CO2 reduction targets
received SBT certification.

Meidensha was recognized as 2022
Health and Productivity Management
Organization (White 500) in the large
enterprise category.

Meidensha was selected as a Healthand Productivity Management Brand
by METI and the TSE.

Meidensha was granted Platinum
Kurumin certification by the Minister of
Health, Labour and Welfare.

AA54-3665

As of Dec., 2022

The motivation
behind ouractivities

Introduction

Source of the Meiden Group’s
Deep-rooted Value Creation

Responsibility
The name “Meidensha” represents the concept of a place

The society we envision for the future is “a resilient society where humans live in harmony with nature,” “a society(sha) where likeminded people could come together andthat feels safe, prosperous, and exciting,” and “a society where different communities and people can coexist.” Thisbuild a more affluent world through the power of electricity

is the DNA of the Meiden Group’s deep-rooted source of value creation. This DNA is the source of our motivation to(den) in the Meiji era (mei). Today, we are driven by ourembrace the challenge of creating a new society and the Meiden Group’s growth.

sense of purpose, responsibility, and ambition to makenecessary infrastructure disappear into the background infields such as electricity, plumbing, transit, and industry.

The motivation
behind ouractivities

Integrity

The motivation
behind ouractivities

Reflecting on our founder’s wish to “enrich society throughIndependent Mindthe power of electricity,” leads us to think of the many
people on the other end of our products and services,hone our technology, and arrive at the Meiden Group’s

We aim to stay one step ahead of solving the issues

mission and raison d’être of building a more affluent worldthat face society and our customers and be able tothrough business. We will continue to create a better future

make proposals for a better world. Our founder, Hosui

society by sincerely facing our customers and society while

Shigemune, contributed to the advancement of electricity

valuing the spirit of monozukuri(the spirit of craftsmanship).

in Japan by becoming involved with a wide range ofelectrical equipment in addition to motors, which were
the Company’s original products, with the idea that it wasnecessary to build an extensive power network in addition
to building motors, in order for the age of electricity toarrive. We will embrace the challenge of actively tacklingsocial issues presented by the age along with like-minded
compatriots.
The motivation
behind ouractivities

Social Contribution
Although times have changed and the social environmentis dramatically different, our wish to enrich society throughelectricity is carried in the hearts of every employee.
What will the world be like in 50 or 100 years? What
can the Meiden Group do to create a more affluent andcomfortable society in the future? We will continue tosearch for these answers.

The motivation
behind ouractivities

Innovative Spirit
Since its foundation, the Meiden Group has produced many
Japan-first and world-first products, such as Gapless Metal
Oxide Surge Arrester (MOSA) that support the stable supplyof electricity, Overhead Catenary System (OCS) inspection
system for railways that can be fitted on carriages, 145 kV
Ecotank type vacuum circuit breakers that do not use SF6gas, and motors and inverters for EVs that we have beendeveloping since the 1980s, in advance of the rest of theworld. Based on the foundation of technology developedby the Meiden Group over more than 120 years, we will
work to solve issues to meet a range of needs and create
new business value.

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MEIDENSHA REPORT 2022

MEIDENSHA REPORT 2022

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Contents

Our Approach
29 Climate Change Responses
33 Manufacturing Strategy
Introduction

35 Promotion of Digital Transformation

1

36 Respecting Human Rights

Source of the Meiden Group’s Deep-rooted Value Creation

37 HR Strategy
Top Message

39 Innovation Strategy

541 Special contents- Round table talk: Thinking About the Meiden Group’s Future with Young Employees

Message from Management

45 Corporate Governance
Philosophy

51 Board of Directors & Executive Officers

952 Message from Newly Appointed Outside Directors

Meiden Group Corporate Philosophy

53 Risk Management / Compliance
Our Value
11 The Path of Value Creation

Our Strategy

13 Meiden Group Value Creation Process

57 Power Infrastructure Business Group

15 Major Issues (Materialities) Identification Process

59 Public, Industrial & Commercial Sector Business Group17 Meiden Group’s Major Issues (Materialities)

61 Mobility & Electrical Components Business Group

19 Major Issues (Materialities) and Medium-term Management Plan 2024

63 EV Components Business Group

21 Social Value Created through Business

65 Field Service Engineering Business Group
67 Overseas Businesses

Special Feature

69 Financial Strategy

Examples of Value Creation to Become a Sustainability Partner

70 Research and Development / Intellectual Property Strategy

23 Achievement of Carbon Neutrality
25 Achievement of Well-being

Corporate Information

28 Co-creation with Communities

71 Overview by Business Segment
72 Financial / Non-Financial Highlights
73 Outline of the Meiden Group

Editorial Policy
The Meiden Group informs its stakeholders of its attitude and initiatives
relating to social responsibility through the two media of the Meidensha
Report (print edition and web edition) and Meiden Group Sustainability(web edition).
The content of this report is determined after reporting to andconsultation with the Board of Directors. With regard to the content
of the reports, we work to collect, analyze, and distribute informationthat meets our stakeholders’ expectations and is of interest to ourstakeholders through daily public relations, IR activities, and interviews
with each department.
Furthermore, the Meiden Group is conducting internal
communication activities as part of the process of drafting reports inorder to understand changes in the external environment and share
future issues and trends. In addition, we work to strategically promote
future sustainability management by exchanging opinions based on
the reports that have been created, and having each department
reflect on its own activities, taking into account outside perspectives.

The Meidensha Report’s Drafting and Approval Process
and Responsibility for the Meidensha Report
In drafting this report, we refer to the International Integrated Reporting
Framework proposed by the IFRS Foundation and the Guidance forIntegrated Corporate Disclosure and Company-Investor Dialogues for

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MEIDENSHA REPORT 2022

Status of incorporation of the ESG Index (as of August 2022)

Report Media
Collaborative Value Creation proposed by the Ministry of Economy,
Trade and Industry, etc. The content of the report is based on opinions
and questions received from stakeholders on a daily basis, and we
drafted it by working with each organization to convey information in amanner that is easily understood from a long-term general perspective,
in order to realize the Meiden Group’s ideal state of being. I haveconfirmed that the drafting process and content are correct and proper.
Since 2013, Meidensha has issued the Meidensha Report as anintegrated report. It is a communication tool for all stakeholders,
including shareholders and investors, to understand the Company.
Going forward, we will use the report as a tool for dialog and sincerely
face our stakeholders to work to sustainably increase corporate value.
(Representative Director & President & Executive Officer: Takeshi Miida)

Meidensha Report print edition and web
editionA comprehensive collection of financial information
concerning the Meiden Group and nonfinancial
information such as initiatives that contributeto improving corporate value and management
strategies.

S&P/JPX
CarbonEfficient Index

SOMPO
Sustainability
Index

FTSE Russell (registered trademark of FTSE International Limited and Frank Russell Company) has
confirmed through third-party investigation that Meidensha meets the requirements of the FTSE Blossom
Japan Index and has been listed in the Index. The FTSE Blossom Japan Index is created by the global

Meiden Group Sustainability Web Edition
A summarized introduction focusing on specific initiatives to tackle
sustainability issues that we consider important.

index provider, FTSE Russell. It is designed to measure the performance of Japanese companies withexceptional environmental, social, and governance (ESG) measures. The FTSE Blossom Japan Index is
widely used for the creation and evaluation of sustainable investment funds and other financial instruments.

CDP Evaluation Results (FY2021)

Disclaimer
In addition to past and current facts about the Meiden Group, thisreport contains forecasts for the future based on plans, outlooks andbusiness policies and strategies in effect at the time of publication.
These forecasts are our assumptions and judgments as based on
information available at the time they were stated and may differ from
actual business activity results and events in future owing to changes
in conditions.

FTSE Blossom
Japan Index

・Climate change: B
・Water security: B

MSCI ESG Ratings Evaluation (2022)
https://meidensha.disclosure.site/en

The MSCI ESG Ratings are ESG ratings by the US-based MSCI. MSCI analyzes
companies’ ESG risk management capabilities and gives one of 7 ratings from AAA to
CCC. In 2022, Meidensha received a rating of A in the MSCI ESG Ratings.

MEIDENSHA REPORT 2022

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Top Message Message from Management

Thinking of the people beyond our products andservices, and implementing strategies for sustainablegrowth into the future

the final fiscal year of the plan, while we reconfirmed andadjusted strategic scenarios based on current management
conditions, and examined and reset numerical targets foreach business. Internal initiatives for the remaining three
years of the plan commenced in April 2022.

Reflecting on the First Year of
Medium-term Management Plan
2024 and Results

Promotion of Sustainability
Management

FY2021 was the first year of operation of Medium-termManagement Plan 2024, which was designed to operate
for four years. However, as with FY2020, it was a year of
considerable ongoing impact of the COVID-19 pandemic
on social and financial activities, as well as heightened
business uncertainty due to increased materials and energy
costs, supply chain disruptions, and the materializationof geopolitical risks. Under these circumstances, we
implemented measures to minimize the impact on results
through efforts to reduce costs and promotion of efficientbusiness management, etc.
In terms of business-related initiatives, we strengthened
the earnings-base businesses of the Domestic Infrastructure
Business and the Electronics Products Business, andpromoted increased investment of resources in markets
such as renewable energy, EVs, and overseas Power T&D,
which are expected to expand greatly going forward. At thesame time, we pushed through reduction of the break-evenpoint for the Mobility T&S (Testing & Solution) Business, forwhich the market is undergoing rapid change, by revising
the business structure, as a measure to respond to an ageof extreme change, and we optimized business systems
and restructured sites, such as by deciding to close US
sites for outsourced testing business, and focus on sites
in Japan.
As a result of these initiatives, consolidated results
included net sales up 10.3% year on year to 255.046 billion
yen, operating income up 12.9% year on year to 9.468
billion yen, ordinary income up 20.6% year on year to
10.206 billion yen, and net income attributable to ownersof parent down 7.8% year on year to 6.733 billion yen.

Medium-term Management Plan
2024 Update
Owing to these circumstances, in May of this year, weupdated Medium-term Management Plan 2024, which
was released in May 2021, and announced it externally. We
firmly maintained our basic direction based on sustainability
management and our all-company numerical targets for

Takeshi Miida
Representative Director &President & Executive Officer

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MEIDENSHA REPORT 2022

Refer to p. 57–p. 66 “Group Business Strategy.”

The purpose of the Meiden Group is to contribute to therealization of prosperous lifestyles through products andservices provided, and we have inherited the ambition“enrich society through the power of electricity” since ourfoundation. The strong desire to contribute to society is thedriving force behind Meiden Group employees, and this issignified by the “sha” character in Meidensha, which means“a place where likeminded people can come together.” Theadvancement of electricity generation, transmission, andusage have greatly developed, as well as technology. We
can proudly say that we are successors to the Company
that earnestly tackled the challenges of electricity, collected
electrical technologies, and contributed to society throughmanufacturing in the time for a change, and the effort andknowledge of the pioneers that allowed the Meidensha oftoday to flourish.

Becoming a Sustainability Partner
In order to achieve our ideal society under Medium-termManagement Plan 2024, we pledged to “work to build
a new society through integrity to the earth, society, andpeople, and through the power of co-creation” as our new
Ideal State of Being/Vision. In April 2021, we also stated
the goal of becoming a “sustainability partner” to embody
the ideal form of the Meiden Group through discussion topromote sustainability management, led by managementand departments comprising dedicated appointees.
We consider a “sustainability partner” to have twomeanings. The first is to be a “partner to the whole ofsociety” by thinking about what a better future for society
looks like and how to achieve it, before taking actions tothat end. The other is to be a partner as an "escort runner”
and accompany likeminded stakeholders to achieve theideal future society. To become a sustainability partner
as so defined, we will provide society with the benefits of“carbon neutrality” and “well-being”.
As the world works to achieve “carbon neutrality”, wewill continue to contribute to society through realizationof cleaner electricity generation, lower-loss electricity
distribution, stable and efficient electricity storage, smarter
control of electricity, etc. In the field of power transmission
and transmission equipment that does not use greenhousegases, in which Meidensha has unmatched technologicalexpertise, we will refine our in-house technology to secureand maintain a position as a leader in the field, and consider
improving our products and expanding our product lineup
through collaboration with our partners.
With regard to “well-being,” which is the second value
provided, we believe that we must first ensure well-being
within the company for employees and others, in order toprovide it throughout the world. Furthermore, in order tocater to the various conceptions of well-being throughout
the world, we are aware that it is essential to gather
personnel with the ability to independently and actively
promote matters, and for them to comprise memberswith various and diverse views and backgrounds. The
value of personnel at the Company is not recorded on thebalance sheet; however, we believe that personnel are theCompany’s most valuable asset. In order to provide “wellbeing” at the Company, we will promote the creation ofan environment where individuals with diverse values canparticipate and the review of system designs to enable
work styles that are appropriate for the times, and promotereforms to enable employees to feel a sense of achievement
and growth.
We are aware that a single company acting alone will
not be able to achieve “carbon neutrality” and “well-being”
for the whole world. Going forward, we will broaden ourconnections with likeminded compatriots who share ourgoals for society, going beyond the bounds of the industry
and the company, and with them, embrace the challengeof creating new value.

The Meiden Group’s Materialities
The ESG Management Promotion Committee, which
was established in FY2021, became the Sustainability
Management Strategy Committee in FY2022. As its
first topic, the Committee discussed how to becomea sustainability partner and major issues (materialities)
relating to medium- to long-term value creation.
When identifying materialities, we investigated risks andopportunities faced by the Meiden Group, and conductedmapping on the two axes of “importance to stakeholders”
and “importance to the Meiden Group.” As a result, thefollowing six materialities were identified: “contribution tocarbon neutrality,” “realization of a secure, safe, andconvenient society,” “innovation through co-creation,”“creating corporate culture that gives lively workspaceand growth for divers human resources,” “high-quality
manufacturing and value provision,” and “sincere
and responsible business operation.” We establishedspecific measures to address each of these major issues
and KPIs to evaluate progress. We will regularly manage
progress and continuously review content.
Refer to p. 17 “Meiden Group’s Major Issues (Materialities).”

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Top Message Message from Management

Consideration of the Long-term Vision After
Medium-term Management Plan 2024
When considering Medium-term Management Plan 2024,
many employees, including young employees, participatedin discussions. We envisioned our ideal society in 2030,
considered the necessary processes to achieve it througha backcasting approach, and incorporated the resultsof this into specific business strategies, having defined
focus areas in which the Meiden Group’s strengths canshine. At present, the first fiscal year of the medium-term
management plan has concluded, and the society-wide
trend of accelerating initiatives aimed at digitalization andcarbon neutrality are progressing as expected. However,
we have also seen the manifestation of geopolitical risks,
supply chain confusion and disruption, and heightened
concerns of economic recession, which are factors thathave resulted in considerable changes, meaning that wemust tackle these changes head on in the short term with
rapidness.
Because the world is so uncertain, I have a renewed
awareness of the need to think about the future 10 or
20 years from now, and be a company that is able toconstantly, actively, and positively change. With that inmind, in conjunction with business execution aimed ataccomplishment of Medium-term Management Plan 2024,
we have started developing a long-term vision to ascertain
our vision for a future society, with an eye to constantly
changing societal conditions. Many mid-level and young
employees, who will support the Meiden Group going
forward, are participating in discussions to this end. We
will take their opinions on board, propose a tentative
explanation of the Meiden Group’s vision for 2040, andhold discussions at the management level, including how
to restructure our business portfolio to achieve it.
In the course of discussions concerning businessportfolio restructuring, it is necessary to incorporate theperspectives of obligations such as the company’s social
responsibility to support infrastructure, the responsibility of
power supply, and degree of environmental contributions,in addition to profit and growth, when conducting businessevaluation. At present, the Domestic Infrastructure
Business and the Field Service Engineering Business,
which are Meidensha’s revenue base, are sound; however,
how to secure revenue in the domestic infrastructure
market, which is expected to contract in the future, is anextremely important theme. We will share the results ofdiscussions concerning a long-term vision with everyone
at an appropriate time.

Initiatives to Improve Corporate Value● Promoting Management for Sustainable Growth
In addition to promoting consideration of a long-term
vision, including restructuring our business portfolio, whichon its own would not enable us to realize sustainable

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MEIDENSHA REPORT 2022

corporate growth, as a step toward achieving the goals
laid out in the long-term vision, it is necessary to conduct
management on a long-, medium-, and short-term basis
by developing a medium-term management plan clarifying
the path to growth over a three- to four-year period, andincorporating these goals into annual plans that need to be
put into action immediately. Ensuring that we constantly
address issues that require immediate attention clarifies
our future direction and issues that arise along the way,in addition to increasing short-term corporate value, andleads to a stable business base.
In our business strategy, the EV Business is expected tobe the biggest driver of growth, and we are convinced thatdemand for electric vehicles will increase as environmental
measures become tighter in countries around the world.
In FY2022, we expect production volume to rise rapidly
at Nagoya and Hangzhou, China (first line), and ensuringthat this production is stable is a major short-term issue.
However, in the medium to long term, it is essential toextend manufacturing technologies for mass production,cultivate new customers, etc., and it is also necessary
to develop organizational capabilities to cater to theautomotive industry, which is undergoing rapid change.
From FY2022, we have transitioned our EV Business tointernally independent management, and we will ensurethat we cater to the rapidly changing automotive industry
through agile decision-making by the general manager ofthe EV Group.
With regard to the Power Infrastructure Business,
we will achieve growth by expanding sales and productlineups of SF6 gas-free products, expanding renewableenergy-related businesses, and participating in theenhancement of a transmission and distribution network.
As for overseas businesses, which have operated inharsh business conditions for the past few years, we aim
to incorporate further increased demand and return toprofit during the current medium-term management plan
against the backdrop of the advance of population growthand urbanization in developing countries, increased global
environmental awareness, etc., by quickly getting newcompanies in the process of starting up off the ground,restructuring sites, etc.
We also anticipate further growth of semiconductorrelated businesses as digitalization further progresses
throughout the whole of society. In addition to our specialties
of vacuum capacitor products and pure ozone technology,
we will expand our Maintenance Services Business forsemiconductor manufacturing equipment, and increase
profitability of the whole group through synergy between
these businesses.
However, at present, the business facing the harshest
conditions is the Mobility T&S Business, which handles
testing equipment used to develop automobiles, etc.
In FY2021, in our U.S. businesses, in light of profitability
challenges, we decided to end the outsourced testing

business that we had previously operated, and change toa business model that specializes in sales and after-sales
service of products in the region. In the Japanese market,
we aim to increase sales of products utilized for developing
electric vehicles and of systems to assist model-based
development, for which customer needs are increasing,and aim to quickly return to profit by focusing on the aftersales service (maintenance) sector, leveraging the fact thatour products have been continuously operated by a rangeof customers.
Refer to p. 57–p. 68 “Group Business Strategy” and “Overseas Businesses.”

Enhancing Manufacturing Capabilities
Until now, the Meiden Group has improved its
manufacturing capabilities by following and responding
to customer demands as our strength. However, in recent
years, through the launch of the EV Business, we havegained the new organizational capability of an integrated
process from R&D to manufacturing, mass production,and standardization. By leveraging the knowledge andknow-how gained from the EV Business, we fully expect
to create added value in other businesses. It is necessary
to aim to create this type of synergy between businesses,
as well as leverage AI and digital technology to apply newmaterials and standardize products, enhance processes
from R&D to mass production, and strengthen production
management systems, in order to respond to societal
changes anticipated in the future.

●

Capital Policy
The core of our capital policy is to conduct growthinvestment and shareholder returns in a balanced manneron the premise of enhancing financial soundness. Securing
and appropriately allocating the management resources ofcapital and personnel are necessary elements for sustainablegrowth. We will develop a policy for capital investment,
R&D investment, and investment in human resources, andexecute with priorities by evaluating investment efficiency
and growth stories for each business and theme according
to long-, medium-, and short-term timelines.

●

Refer to p. 69 “Financial Strategy.”

Enhancing Corporate GovernanceWith regard to enhancing corporate governance, we
reviewed the structure of the Board of Directors at theAnnual General Meeting of Shareholders held in June
2022. As a result of this review, there are now 11 directors,
including directors who are Audit and Supervisory
Committee members, of whom six are independent
outside directors, which has made the governancestructure even more transparent. Going forward, we
will further reflect the objective perspectives of outside
directors and their unique knowledge and experience,
etc., in the management of the Company, and make●discussions of the Board of Directors livelier.
Refer to p. 45–p. 50 “Corporate Governance.”

Dialogue with Stakeholders
We believe that dialogue with stakeholders, who support the
Meiden Group, is extremely important to receive a correctunderstanding of the Company’s businesses and strategy.
In FY2021, we held the first ESG briefing for the purposeof deepening understanding concerning the relationshipbetween promotion of sustainability management andmedium- to long-term increase in the Meiden Group’s
corporate value. In order to respond quickly to future rapid
societal changes and the evolution of technology, it isnecessary to incorporate new technologies and continue
to develop next-generation systems by creating synergy
with other companies’ technologies, including the Meiden
Group’s resources and companies in other industries. We
pledge to our shareholders that we will share information
about our policies and conduct meticulous communication
with our stakeholders, as well as sustainably increase
corporate value through a virtuous cycle of revenue
creation and investment in growth.
Please refer to “Dialogues with Shareholders and Investors”
on the sustainability website.
https://meidensha.disclosure.site/en/themes/140

Finally
Meidensha’s business was founded with the founder’sconviction to “enrich society through the power ofelectricity.” Meidensha is now over 120 years old, andthinking about the realization of an affluent lifestyle for thepeople on the other end of our products and services,
and a vibrant society, is still the source of our values andstrengths. As diversification of social values progresses, it isincreasingly important to shift from the approach of “Whatwill people buy?” to thinking about “Why do people buy
our products?” and “Why are our products and services
needed?” Amid such changing times, we will continue
to deal sincerely with the earth and people, and take onchallenges alongside those with similar aspirations. We
feel that this is the aspiration that has been passed down
since our founding and the significance of our company's
continued existence in this world.
Going forward, we will boldly embrace the challenge ofcreating new value by connecting with likeminded people
who share our vision of society, beyond the boundaries ofcompanies.

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Philosophy

The Meiden Group Corporate Philosophy is as follows: “We seek to delight customers by offering high quality
products, services, and solutions to help solve their problems. Through these business activities, we aim to

Meiden Group Corporate Philosophy

proactively solve global environmental problems and other social issues and help achieve more affluent future. We
must continually tackle these challenges.”
This is our legacy from Hosui Shigemune, who founded our company as a local factory to manufacture andrepair electrical machinery. His will remains our common sense of values, even as these have evolved with thetimes, and remains at the core of all our business activities. Staying true to this Corporate Philosophy, the Meiden
Group aims to grow with society and be indispensable to it. With that as our goal, we continually take thechallenge of creating new technologies and value.

Meiden Group Corporate Philosophy(Corporate raison d’être)Corporate Mission

Corporate Slogan(Expressing the corporate philosophy in a single phrase)

It defines the raison d’être and corporate mission

Illuminating a more affluent
tomorrow
We continue to create value and technologies
for the realization of a more affluent andenvironmentally aware society.

Value Provision

For us, our “quality” is not only about the quality ofour products and services. There are two things thatmake our quality: “people” and “technology.” People
at Meiden strengthen ties with customers aroundthe world by being truthful and flexible. Meiden
Group technology contributes to society with truly
original products and reliable services created withexpertise. These two attributes make Meiden’s
unique quality, and create new connections withthe future. Making connections with our customers,society, and people living in it. These connections will
expand, and the power we have built will become
the energy for the next generation.
For the peace of mind and joy of our customers,
and the precious lives of people beyond them,
Meiden Group quality will connect with a more
prosperous tomorrow. This is our never-changing
mission.

It defines the unique value provision and core competence

For customer peace of mind
and satisfaction
We offer complete environmental consideration and appropriate
support for our customers.
From product design to commissioning, our highly skilled staff help
customers solve various issues and realize their dreams by providing
high-quality, socially responsible products and services.

(VISION)

In order to realize our Group Corporate Philosophy,
we must identify the direction for each individual
employee to aim towards and provide signposts
to help them proceed without losing their way. To
enable us to do so, we have made these five actions
our watchwords. The actions are mutually linked,
with one action calling forth the next, creating a cycleof action and growth. Based on this image, we callthis the Meiden Cycle.

Important Values

By sharing and practicing the Meiden Cycle as
the ethos underlying our actions, we seek to maximize
the growth cycle for each of our employees.

MEIDEN CYCLE

Ideal State of Being/Vision (Corporate Ideal State of Being)
Work to build a new society through integrity to the earth, society, andpeople, and through the power of co-creation

A sustainability partner that creates personal happiness and asustainable global environment

Important Values (Values Shared by Employees)●

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Sustainability ● Diversity ● Integrity and responsibility ● Future-orientation

MEIDENSHA REPORT 2022

Corporate
Philosophy(MISSION)

Ideal State of Being/Vision

Build Loyalty(VALUE)MEIDENSHA REPORT 2022

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FY2021Net sales

255

Our Value

The Path of Value Creation
Since its founding in 1897, Meidensha has single-mindedly pursued
manufacturing excellence while contributing to the sustainableadvancement of society by creating a variety of technologies, products,
and services, with a focus on the Japanese social infrastructure sector.
Our commitment to manufacturing excellence, inquisitiveness,and spirit of challenge originate in the determination of our founder,
Hosui Shigemune, to “build more affluent tomorrow through the powerof electricity.” He was a firm believer in looking beyond products toenvision prosperous lives for many people who use them and refining
technologies to enrich society through business. This has been our very
mission as a manufacturer of electrical equipment and the reason forour existence.

billion yen

Operating income

9.4

billion yen

Our spirit of “for society and forpeople” has been testament to ourexistence more than 120 years.
Important values carried on for over 120 years since our foundation
Spirit of “for Society and for People”
In the Meiji Era, the name of Meidensha represented the concept of creating a place where
ambitious friends can come together to “build a more affluent tomorrow through the powerof electricity.” He was a firm believer in looking beyond products to support the lifestylesof the people who use them and use the technologies therein to enrich society. 120 years
have passed since the Company was founded, but we still carry that ambition and belief.

Important Values (Values Shared by Employees)●

Hosui Shigemune

Net sales

Sustainability●

Diversity●

Integrity and responsibility●

Future-orientation

Operating income* Figures from FY1990 onwards are consolidated totals.

1917

1940

1960

1980

2000

2021

Establishment of stock company

1897

1970s

1980s

1990s~2000s

2010s

2012~20142015~20172018~Founding and Birth of“The Motor expert Meiden”

Evolving into “Meiden aPower Electronics Company”

Evolving into “Meiden a System
Engineering Company”

Approaching Our Centenary

Aiming to Be “Meidena Global Company”

Supporting Society throughthe “POWER” of Manufacturing

Creating a “New Future”
through Product Strength

Investment in Equipment
and Personnel for Great Growth

In 1897, our founder Hosui Shigemune started
a factory at a time when Japan depended on
imported products for much of its industrial
machinery. His efforts led him to devise an
induction motor design method in 1905. In thefollowing year, he started a full-scale
production of motors to his own design
method.
Meidensha’s motor production helped tomodernize Japanese industry and became thecornerstone of our value-building that still
persists today.

In about 1970, society was beginning to prize
quality over quantity. Likewise, we switched
our management strategy from quantity based
to quality based. On the technical side, our aim
was to develop new products that made fulluse of our employees’ creativity. At this time,
we began to cement our status as amanufacturer of heavy electrical equipment,
having developed new products that combined
heavy electrical technology (power) with thelatest electronics technology.

In the latter half of the 1980s, economic
expansion led us to boost our production
capacity at factories and upgrade our
production system. We expanded our family ofGroup companies and developed a variety ofbusinesses to make us a stronger enterprise.
We grew to have three core business pillars,
adding mechatronics and electronics to ourexisting power electronics field. We integrated
technologies from each of these fields topromote management, monitoring, and control
systems.

Japan’s business environment changed
drastically after the collapse of the bubble
economy, and management was faced with atime of crisis. However, the legacy we had
inherited from our predecessors, technologies
and well-developed human resources, became
the base for a new era of expansion as we hit
the 100-year milestone in 1997. Upon our
110th anniversary in 2007, we christened
ThinkPark Tower, a facility for our head office,surrounded by abundant greenery in Osaki,
Shinagawa City, Tokyo, where our company
was founded.

The Meiden Group has been expanding its
presence in markets outside Japan, especially in
the ASEAN region. As part of this, we
strengthened regional supervisory role of ouroverseas subsidiaries; e.g. building partnerships
with enterprises outside Japan, and opening
training centers for local staff. We started tofocus on using the IoT and AI to increase our
product
competitivenessandsystemtechnology. We also enhanced our one-stop
service, which ranges from equipment
manufacture to maintenance, inspection, andoperations and management.

Since the Great East Japan Earthquake, in the
midst of great changes in the global businessenvironment, due to changes to Japaneseenergy policies and the high value of the yen,etc., we have conducted business composition
reforms such as group restructuring, expanded
the transmission and distribution business,
which we inherited in FY2012, and establisheda foundation for growth businesses, such as
motors and inverters for electric vehicles, inorder to enhance our “monozukuri(manufacturing) capabilities” for a new leap
forward.

We have continued to benefit from the resultsof the previous medium-term management
plan, and we aimed to jump from aperformance recovery phase to a growthphase. According to this basic idea, we
worked to both “strengthen the earnings baseof businesses in Japan” and “expand
overseas business,” and worked to produce
results through new partnerships such as
EAML Engineering and MEIDEN T&D(INDIA)LIMITED in India. In December 2017,
we celebrated our 120th anniversary.

We consider this era to be a “powerful step
forward” phase for a future JUMP. We
established new sites and production lines toincrease future revenue through active capital
investment for “Growth Businesses” such as
the Overseas and Automobile-related
Businesses, and increased the earning
capacity of “Earnings-Base Businesses.”
Creation of a foundation is proceeding, such as
opening a new technology center to contributeto the development of high-level personnel,
and a human resources system that is suited tothe changes of the age.

11

MEIDENSHA REPORT 2022

A more detailed timeline may be found on our website.
https://www.meidensha.com/corporate/corp_05/index.html

MEIDENSHA REPORT 2022

12

Our Value

Meiden Group Value Creation Process

The Meiden Group will reform its value creation processes to realize its ideal society and 2030 ideal state of being/vision,
with the aim of achieving a sustainable society and sustainable growth of the Meiden Group.

Societal Changes
Climate Change
Diversification of sense of values● Progress of digitalization● Shrinking domestic market● Financial difficulties in local government
●
●

Input

Patents, etc., held(in Japan and overseas)

9.8

2,571

billion yen

Manufacturing sites

8

Capital Investment

Overseas
sitesWork to build a new society through integrity to the earth, society,and people, and through the power of co-creation- Sustainability partner -The Meiden Group’s Strengths
Deep knowledgeof electricity

Manufacturing
capabilities

Dealing withcustomers sincerely

Strong relationship oftrust with customers(patents, utility models, and designs)

Manufacturing Capital (FY2021 results)
Japan

A resilient society where humans live in harmony with nature

2030 Ideal State of Being/Vision

Base Business Activities

Intellectual capital (as of March 31, 2022)
Research anddevelopment
expenditure

Ideal Society

11

10.7

Medium-term Management Plan 2024

Materialities Relating to
Value Creation

Basic Policy

carbon neutrality

society

1. Rapid progress of growth businesses
2. Increasing competitiveness offoundation for profits
3. Increasing profitability of overseas
businesses
Basic Policy

2Natural Capital (FY2021 results)
Renewable
EnergyEnergy usage
Japan

Overseas

19,994kL 5,037kL

Understanding
Provision ofneeds
equipment
andand
Co-creation
issuessystemswith partners

Use of water resources
Japan

1,834

Human Capital (FY2021 results)

After-sales service

Total actual working hours per year

9,923 1,970

hours/year/person

Green
Mobility

2,065

43

countries

Suppliers
Approx.

●Countries of salecompanies

1,600

Smart
IndustryFoundation to support
business activities

Social Capital (FY2021 non-consolidated results)
Customers

Innovation throughco-creation

Corporate governance● Risk management

Materialities Relating to
Our Business Basecompanies

Creating corporate
culture that gives lively
workplace and growthfor diverse humanresources
High-quality
manufacturing
and value provisionCorporate Philosophy
Illuminating a more affluent tomorrow
For customer peace of mind and satisfaction

Sincere and responsible

Total assets

290.9

13

Ratingbillionyen

A-

MEIDENSHA REPORT 2022

* Rating issued
by JapanCredit Rating
Agency, Ltd.

●● Sustainability ● Diversity
Integrity and responsibility ● Future-orientation

Creation of Social, Environmental, and Financial Value

300

Operating income

billion yen

18

P.15-20

billion yen

60-65

billion yen

Building a society

Stable level of30%

Power Infrastructure

Shifting earnings
obtained inexisting
businesses toinvestment in
new fields
Three-pronged
structure
supporting
innovation

Safe and secure water usage●

P.57-66

The earthSociety

Customers

Safe and secure infrastructure

Development of local economies
Convenient and comfortable lifestyles● Creation of a new society●

Power Infrastructure
Public, Industrial &Commercial
generation andPublic, Industrial & Commercial Powertransmission & distribution

products
Renewable energy-related
businesses
Power conversion equipment
Power storage systems
Supervisory control systems,
etc.

Mobility & Electrical Components

Mobility & Electrical
Components
Motors and inverters
for industrial
machines and electricvehiclesVacuum capacitors
Dynamometersystems, etc.

Creation ofvalue to support
a new society●●

Basic Policy

Promotion of management ambidexterity

Decarbonization and energy
conservation for society and customers

Toward a society that feels
safe, prosperous, and exciting

Products and Services

based on personal happiness3●

Particularly relevant
stakeholders

Consolidated dividend payout ratio

lifestyles and industries
Well-being

Toward a resilient society where
humans live in harmony with nature

Operating cash flow (FY2022-2024)

Carbon Neutrality

business operation

Important Values
Financial Capital (FY2021 results)

Promotion of sustainability management

Outcomes (value provided)

FY2024 Targets

Realizing environmentally friendly

Design solutions

thousand m3

Employees

Sustainable
Infrastructure

OutputNet sales

1
Realization of high-quality growth

Contribution tosafe and convenient
Value Creation Mechanisms

A society where different communities and people can coexist

Materialities

Realization of a secure,billionyen

sites

A society that feels safe, prosperous, and exciting

Field Service Engineering

Particularly relevant
stakeholders

Society

Customers

Toward a society where various
communities and people can coexist●●

Realization of diverse lifestyles
Realization of a sense of achievement
and individuality

Particularly relevant
stakeholders

Society

Employees

Enhancement of Capital

Field Service
Engineering●

Strong financial structure

Equipment
maintenance andservicing●●

Relationships of trust with stakeholders
Increased level of personnel

Particularly relevant
stakeholders

Shareholders Suppliers Employees

Sustainable growth through circular value creation (reinvestment in capital)

MEIDENSHA REPORT 2022

14

Our Value

Major Issue (Materialities) Identification Process
Management of Major Opportunities
and Risks for the Meiden GroupWe arranged societal changes by 2030 and impact
on business management and identified constituent
factors through PEST analysis.
We drafted a longlist (369 societal changes andissues in total), including the aforementioned
constituent factors using metrics of international
standard-setting organizations and items set by
ESG evaluation institutions, to avoid omissions.
We listed 369 societal changes and issues in total,
and arranged them according to opportunities andrisks from the perspective of the Meiden Group’s
ideal state of being.
Analysis of Societal Changes and Impact from a PEST Perspective

2

Evaluation of Importance

We conducted an overall evaluation of the importanceof major risks and opportunities according to the twoaxes of the Meiden Group and Stakeholders.
Evaluating
department

Evaluation items

MeidenGroup

Corporate Policy PlanningGroup, etc.

FY2030 impact on operating income,likelihood of occurrence, and levelof response

Stakeholders

Business units that deal
with stakeholders

To what extent do stakeholders
consider the issues to be important

Evaluation of Importance to the Meiden Group and Stakeholders

International situation, policies, laws, andregulations, etc.

Politics

Trends relating to economics, finance, andtrade, etc.

EconomyEnvironment

Climate change, waste, food insufficiency,
and natural disasters, etc.

Society

Population dynamics, industrial development,
and education systems, etc.

Technology

Information transmission, materials, logistics,
and new fields, etc.

Aspects of Opportunities
Very important
Expansion of businesses
that contribute to the environment
Importance to stakeholders

1

Ensuring a secure and safe society(increased need for replacement and maintenance of domestic infrastructure)
・Realization of a convenient andcomfortable society (increased needfor labor saving and automation)
・Expansion of overseas markets
・Advancement of new technologies

SDGs

Leveraging human capital(increased productivity
through high engagement)

Rebuilding
local
infrastructure

Realization of a
resilient societyManagement of Changes and Issues that are Important to Society

Progress of digitalization(digital transformation/increased
semiconductor needs)

We identified materialities under Medium-term Management Plan 2024 by back casting from our vision for 2030.
The Meiden Group will embrace the challenge of creating a new society and work toward the realization ofa sustainable global environment and happiness for all people by solving materialities that have been identified.

3

Identification and Determinationof Materialities

Important

Based on our materialities, we are developing
strategies and implementing measures underMedium-term Management Plan 2024.

Designated materialities are discussed anddetermined by the Sustainability Management
Strategy Committee, the Executive Officers’
Meeting, and the Board of Directors.

With regard to implementation of measures, weestablish KPIs to the extent possible and conduct
internal progress management.
We will regularly review materialities and KPIs.

Gathering and Identification of Six Materialities
Very Important Opportunities

Very Important Risks• Expansion of businesses that
contribute to the environment• Ensuring a secure and safe society(increased need for replacement
and maintenance of domestic
infrastructure)• Rebuilding local infrastructure• Progress of digitalization(digital transformation/increased
semiconductor needs)• Realization of a convenient andcomfortable society(increased need for labor saving
and automation)• Expansion of overseas markets• Advancement of new technologies• Leveraging human capital(increased productivity throughhigh engagement)• Environmental regulations andclimate change(carbon tax and increased frequencyof storms and floods, etc.)• Changes in the global economy,
politics, society• Insufficient awareness or
responsiveness to changes inmarket conditions• Reduction of quality• Risk of industrial accidents• Insufficient compliance• Risks relating to procurement ofmaterials

Importance to the Meiden Group

Very important

Ten Principles of the UN Global Compact

Aspects of Risks
Very important
Reductionof quality

Importance to stakeholders

SASB standards

ESG evaluation organizations

Insufficient awareness or responsivenessto changes in market conditions Environmental regulations
and climate change
Occurrence of
natural disasters

Insufficientcompliance

Information security risks
Risk of pandemics

Six Major Issues (Materialities)

Medium-term Management Plan 2024
Basic Policy

Basic Policy

Basic Policy

1

2

3

Realization of“high-quality”
growthPromotion ofsustainability
management

Promotion ofmanagementambidexterity

Individual
strategies

KPIs

Ideal Society in 2030

Materialities Relating to Value Creation
GRI standards

Establishment of Targets
and KPIs

We have gathered and designated items that wehave deemed are very important opportunities orrisks as six materialities.

Advancement of a circular society

ISO 26000

4

Changes in the global
economy, politics,
society

Risk of industrial
accidents
Human rights
infringements

Risks relating toprocurement of materials
Loss of personnel orinsufficient personnel

Contribution to carbon
neutrality

Realization of asecure, safe, andconvenient society

Innovation throughco-creation

Creating corporate culture thatgives lively workplace and growthfor diverse human resources

High-quality
manufacturing andvalue provision

Sincere andresponsible business
operationWork to build a new society through integrity to the earth,society, and people, and through the power of co-creation

A society thatfeels safe,
prosperous, andexciting

A resilient
society where
humans live inharmony withnatureA society where
different
communities
and people cancoexistMaterialities Relating to Our Business Base
Important

15

MEIDENSHA REPORT 2022

Importance to the Meiden Group

Very important

MEIDENSHA REPORT 2022

16

Our Value

Meiden Group’s Major Issues (Materialities)
The six identified materialities are divided into the two groups of “materialities relating to value
creation,” to embrace the challenge of creating a new society, and “materialities relating to ourbusiness base,” to support business operation.

Materialities Relating to Value Creation

Materialities Relating to Our Business BaseContribution to Carbon Neutrality
Reasons for Identification as a Materiality

Related SDGs

The Meiden Group operates many decarbonization businesses,
but there is also an environmental impact from manufacturing.
It is essential to launch a response to the significant impact on
operations.

Reasons for Identification as a Materiality

Outlook

Outlook

Values will diversify and work-styles will change. There is a demand
for a corporate atmosphere that allows individuals to display theirabilities and work with enthusiasm.
As a precursor to this, it is essential for the workplace environment
to allow employees to be physically and psychologically healthy.

Realization of a Secure, Safe and Convenient Society

High-quality Manufacturing and Value Provision

Reasons for Identification as a Materiality

Reasons for Identification as a Materiality

Related SDGs

The Meiden Group operates many relevant businesses.
On another front, it is essential to respond as business continuity
risks may arise.

Related SDGs

The Meiden Group’s strength of insistence on quality isessential not only to deliver products and systems, but also
provide subsequent services.

Outlook

Outlook

Review of the state of local infrastructure will proceed due to thedeclining birthrate and aging population, difficulties with local
government finances, and aging facilities in Japan.

The Meiden Group’s business fields relate to infrastructure andindustrial underpinnings, and it is essential that we deliver highquality products and systems without defects.

Digitalization is expected to proceed, leading to increased
semiconductor-related demand and increased demand for
reduced manpower and automation in the industrial sector.

As society changes, the value of infrastructure and equipment that“will not shut down” under any circumstances will remain constant.

Innovation Through Co-creation

Sincere and Responsible Business Operation

Reasons for Identification as a Materiality

It is extremely important to embrace the challenge of developing
next-generation technology, and create and furnish social value
along with partners that share the same conviction.
Outlook

Existing social systems have reached the end of their usefulness,and global-scale social issues have arisen, including climatechange issues.
These issues cannot be solved by any individual organization, so
it is necessary to enter partnerships to embrace the challenge ofsolving them.

MEIDENSHA REPORT 2022

Related SDGs

Human resources are the source of the Meiden Group’s strength.
Drawing out and combining the abilities of each individual isessential for value creation.

Climate change is accelerating, and the movement to reach theParis agreement target (1.5°C) is gaining momentum.
Markets relating to decarbonization are expanding, and it isessential to respond to legal restrictions relating to carbon taxes,
etc., and prepare for increasing large-scale disasters.

17

Creating corporate culture that gives lively workplaceand growth for diverse human resources

Related SDGs

Reasons for Identification as a Materiality

Related SDGs

It is important to respond to the changing requirements ofsociety and promote management that we can be proud of,with the core of the Meiden Group’s strengths of sincerity andresponsibility.
Outlook

We have an obligation to society to always conduct corporate
management with sincerity, as we receive capital from society,provide value to society in conjunction with our stakeholders.

MEIDENSHA REPORT 2022

18

Our Value

Major Issues (Materialities) and Medium-termManagement Plan 2024
Major opportunities ■ Major risks
Major opportunities
and risksMaterialities

Contribution tocarbon neutrality

Expansion of markets for businesses that
contribute to the environment■ Increased costs due to carbon taxes, etc.
■ Risks from frequent storms and floods■ Decline in competitiveness due to late
response

Medium-term Management Plan 2024
Basic Policy 1
Realization ofhigh-quality
growthBasic Policy 2
Promotion ofsustainability
management

Realization of asafe, secure, andconvenient society

Growing need for replacement andmaintenance of infrastructure
Rebuilding local infrastructure
Growing need for semiconductors due todigitalization
Expansion of overseas markets
Creation of added value through digitaltransformation (DX)
Growing need for labor reduction andautomation■ Decline in competitiveness due to late
response

Innovation throughco-creation

Growing new needs due to sustainability
and ESG trends
Advancement of new technologies■ Decline in competitiveness due to late
response

Creating corporate
culture that gives
lively workplace andgrowth for diverse
human resources

Improvement of productivity through highengagement of employees
Generation of innovation by leveraging
diversity■ Outflow of personnel or insufficientpersonnel due to low engagement■ Worse employee health due to factors
including occurrence of industrial
accidents and pandemics

High-quality
manufacturing andvalue creation

Sincere andresponsible business
operation

Creating safe and secure infrastructure
and industrial underpinnings■ Loss of customer trust or orders byreason of lower quality■ Infringement of human rights by the
Meiden Group or suppliers■ Information security risks■ Insufficient compliance measures

Basic Policy 1
Realization ofhigh-quality
growthBasic Policy 3
Promotingambidexterity
management
Basic Policy 2
Promotion ofsustainability
management

Basic Policy 2
Promotion ofsustainability
management
Basic Policy 2
Promotion ofsustainability
management

1. Expansion of growth businesses
Expansion of EV-related, renewable energy
business, and environmentally-considerate
products, and high profitability

Promotion of decarbonization within the
Company

1. Expansion of growth businesses
Expansion of motor drive andsemiconductor-related businesses
2. Enhancement of competitiveness ofearnings-based businesses
Expansion of the maintenance business
Promotion of public private partnerships andprovision of design solutions
3. Improvement of profitability of overseas
businesses
Rebuilding and improving profitability ofoverseas businesses

Major KPIs and targets( ) are externally disclosed targets for FY2024

Externally disclosed targets for
FY2025 onwards

EV business net sales (47.0 billion yen) ★
Renewable energy business net sales
Environmental contribution (10.00 million tons) ★
Scope 3 reduction rate (6% reduction compared to FY2019) ★
Proportion of green products
Number of super green products

EV business net sales(100.0 billion yen in FY2028) ★
Scope 3 reduction rate
(15% reduction compared to FY2019 in FY2030) ★

Scope 1,2 reduction rate
(6% reduction compared to FY2019) ★

Scope 1 and 2 reduction rate
(30% reduction compared to FY2019 in FY2030) ★
Achievement of RE100 (FY2040) ★
Achievement of carbon neutrality (FY2050) ★

Relatedpages

P. 23~24
・Special Feature
Achievement of Carbon
Neutrality

Motor Drive business net sales
Semiconductor-related businesses net sales
Maintenance business net sales (¥41.6 billion) ★
Overseas net sales (¥73.0 billion) ★
P. 25~27—

Creation of new business themes andpromotion of commercialization throughco-creation
Development of and furnishing society with
next-generation technology

New businesses net sales (¥5.0 billion) ★
Number of innovation themes
Number of innovation personnel

Implementation of measures to improveengagement
Expansion of diversity and inclusion
measures
Expansion and fulfillment of professional
development programs
Enhancement of occupational health andsafetyPromotion of health management

Improvement rate of employee engagement metrics(10% improvement compared to FY2021) ★
Female officer class: number of inside officers (at least 1) ★
Number of non-Japanese presidents of local subsidiaries(at least 3) ★
Total education and training expenses
Number of industrial accidents

Establishment of the Meiden Monozukuri(Manufacturing) Standards to improve QCDSE
Enhancement of quality assurance (QR map,reconstruction of the Meiden Customer
Center, etc.)

Manufacturing process metrics(product production time, production time per unit, units
produced per person, production/manufacturing lead time)
Number of defects and cost of dealing with defects(reduced by half compared to FY2020) ★

Enhancement of stakeholder engagement
Introduction of respect for human rights andhuman rights due diligence
Enhancement of information security andinternal training
Enhancement of compliance
Enhancement of corporate governance

Stakeholder engagement improvement rate
Human rights training attendance rate
Information security training attendance rate
Compliance training attendance rate

・Special Feature
Achievement of Well-Being

P. 39~40—

・Innovation Strategy

Female officer class: number of inside officers(at least 3, of which 1 is an executive officer, in FY2030) ★
Number of non-Japanese presidents of local subsidiaries(at least 5, of which 1 is an executive officer, in FY2030) ★

P. 37~38
・HR Strategy

P. 28

—

・Special Feature
Co-creation with Communities

P. 33~34
・Manufacturing Strategy

P. 36
・Respecting Human Rights—

P. 45~56
・Corporate Governance
・Board of Directors andExecutive Officers
・Risk Management andCompliance★ indicates targets (we will continue to consider and scrutinize selection of measures and specific KPI figures going forward.)

19

MEIDENSHA REPORT 2022

MEIDENSHA REPORT 2022

20

Our Value

Social Value Created through Business

Power Infrastructures Business Group

Public, Industrial & Commercial Sector Business Group

Mobility & Electrical Components Business Group

Field Service Engineering Business Group

The Power Infrastructures Business Group manufactures andsells power generation systems to generate the electricity that
supports industry and lifestyles, substation equipment for powertransmission and distribution, and products and systems forgeneration of renewable energy, which is expected to increase
going forward, and efficient use of electricity.

The Public, Industrial & Commercial Sector Business Group
manufactures and sells various electrical equipment and related
systems which support safe and efficient use of electricity inorder to realize infrastructure that support people’s affluent
lifestyles, facilities and competitive factories, etc.

The Mobility & Electrical Components Business Group manufacturesand sells precision component products and testing equipment
to support cutting-edge manufacturing and R&D, electric vehicle
drive units to support the rapidly progressing electrification of
automobiles, and motors and inverters to contribute to various
industries through high efficiency and control technology.

The Field Service Engineering Business Group provides solutions
such as maintenance services for customers to safely use
equipment delivered by Meidensha, and other equipment, for along time, equipment life extension, and energy conservation.

Value Provision

Value Provision

Value Provision

Value Provision

Realizing green, safe, andstable electricity provision

Contributing to building
sustainable infrastructure

Contributing to the realization of cutting-edge
technology and technological innovation for mobility

Realizing a secure and safe society
through maintenance services

Products and Services
Power T&D
Sale of power T&D equipment(transformers, switchgears, surgearresters, and vacuum interrupters,etc.)Power & Energy
Generation, transmission, anddistribution systems
Power monitoring and control
systems
Hydroelectric power generationequipment
Photovoltaic PCSs
Wind power O&M

Main Customers
Overseas electric powercompanies, etc.

Electric power companies
Power generation companies
Local public enterprise, etc.

Products and Services
Social Infrastructure Systems
Generation, transmission, anddistribution systems
Supervisory control system
UPS

Railways
Power supply systems
Supervisory control system
Overhead contact line inspection
systemWater Infrastructure
Monitoring and control systems forfacilities for drinking water andsewage treatment plants
Power generation, transmission,and distribution systems
Operation and Maintenance
Ceramic Flatsheet Membranes

21

MEIDENSHA REPORT 2022

Main Customers
Government offices
Broadcasters
Buildings
Facilities
Hospitals
Private factories
Heavy industry manufacturer, etc.

Products and Services
Motor Drive Solutions
Elevator traction machines
Motors for injection molding machinery
Electric forklift motors and inverters
Various general industry motors andinverters
Automatic guided vehicles, etc.
EVs
EV/PHEV motors and inverters

JR companies
Public railways
Private railways
Overseas urban high-speed rail, etc.

Local governments, including
the Bureau of Sewerage Tokyo
Metropolitan Government
Overseas private business
operators, etc.

Electronics products
Vacuum capacitors
Industrial PCs
Pulse power supplies
Mobility T&S(Testing and solution)
Automobile production testing systems(engine benches, drivetrains, EV
benches, dynamometers)

Main Customers
Elevator manufacturers
Machine tool manufacturers
Forklift manufacturers
Warehouse companies
Factories of various
manufacturers, etc.

Automobile manufacturers
Automotive parts manufacturers

Services

Main Customers

Maintenance consulting
Preventative maintenance
Corrective maintenanceOperation and management
Breakdown maintenance
Overall diagnosis
Life-extending treatment
Renewal plans
Carbon neutrality (“Support for Highefficiency Installations for Facilities withTargets” (SHIFT))
General building management
Customer center, etc.

Government offices
Water infrastructure-relatedorganizations (local governments,
etc.)
Railway operators
Various industry-relatedorganizations(iron and steel, automotive,
electrical equipment, machinery,etc.)
Facilities, buildings, hospitals, etc.

Semiconductor manufacturing
equipment manufacturers

Technological Training Center: Manabi-ya

Automobile manufacturers
Automotive parts manufacturers
Automotive research institutions,etc.

Education system with full-time instructors
On-site education using actual equipment
Experiential education using ICT

MEIDENSHA REPORT 2022

22

Special Feature

Aiming to Secure New Sewerage Treatment Technology to Achieve Carbon Neutrality

Examples of Value Creation to Become a Sustainability Partner

Achievement of Carbon Neutrality

The demonstration project for technology to “recover energy fromsewerage using a high-efficiency primary sedimentation tank,”
which was a joint proposal with Osaka City, was selected for the
Ministry of Land, Infrastructure, Transport and Tourism’s FY2022
Demonstration Study of Breakthrough by Dynamic Approach in
Sewage High Technology (B-DASH) Project. This project promotes
energy production through recovery of energy from sewerage,
and demonstrates energy conservation, CO₂ reduction, lowmaintenance, and cost-saving effects, by transforming primary
sedimentation tanks into high-efficiency primary sedimentation
tanks at existing sewerage treatment facilities, etc.
In conventional sewerage treatment processes, influent isfirstly separated from sediment in a settling tank (primary sludge),then microorganisms are activated to separate matter that does
not sink through aeration (a treatment process where oxygen ispassed through water) in a reaction tank, before undergoing further
treatment in the final settling tank and being released into rivers,
etc., as treated water. This method has the issues of consuming
electricity for aeration by the aerator, etc., decomposing evenorganic matter that will be utilized for energy, and causing sludge
to accumulate.
In the high-efficiency primary sedimentation tank treatment
process proposed by Osaka City and Meidensha, dissolved organic
matter that will be utilized for energy is recovered at the step prior

to sending influent to the reaction tank, and used for digestion gas
power generation. In addition, the reaction tank can be made smaller
by reducing the amount of sludge due to decreasing the amountof organic matter that is dissolved in the reaction tank, and power
consumption and maintenance can be reduced.
Through the establishment of technologies such as this, wewill realize an energy self-sufficient sewerage treatment systemthat contributes to the miniaturization that will cater to a decreasing
population and decarbonization of sewerage treatment equipment.
Outline of proposed technology
Aeration consumes power, organic matter is decomposed,
and sludge increases

Conventional
technology
Inflow
Concentrated
Preliminary
sludgeTreatedwater
Preliminary
settling tank

Reaction tank

Separation of non-settled matter

Aeration power consumption: High

Reduced burden of organic matter andless sludge

Recovered as energy

High-efficiency energy recovery
technology
Inflow
Concentrated
preliminary
High-efficiency
sludge Concentration tank preliminary settling tank

Final settling tank
Removed sludge

Separation of settled matter only
Proposedtechnology

Returned sludge

Reaction tank

Recovery and consumption of soluble organic matter

Returned sludge

Reduction of machinery

Treatedwater
Final settling tank
Removed sludge

Energy conservation

Simultaneously achieves promotion of recovery of unused energy and energy production, energy and space efficiency, andlower maintenanceContributing to the Realization of High-Efficiency Electricity Transmission by Delivering Ultra-High
Voltage 800-kV Surge Arresters

Contribution to Regional Revitalization Through Highly Sustainable Hydropower Generation
The history of Meidensha’shydropower
generation
systems dates back to 1901,
when we delivered the firstalternating current generator
to the power company of
the time. Now, Meidensha
creates the generators andcontrol panels that comprisehydropower
generation
Toshitake Masuko systems, while the Group
Hydropower Products Planning &company, EAML Engineering
Engineering DivisionCO., Ltd., creates hydraulicturbines, so being able toprovide all necessary components from within the Groupis one of our great strengths.
In recent years, new large-scale hydroelectric power
plant developments have been in decline; however, there
are many sources of “potential water power” suitable forhydropower generation in Japan that remain undeveloped.
Of these, there are 2,600 sites with the potential for lessthan 5,000 kW, which is the Meiden Group’s specialty, said
to be equivalent to four nuclear power stations.
With regard to development of small to midsizehydroelectric power plants, there are usually many issues,
such as high costs due to on-spec design to cater to theconditions of the location and environment, construction

23

MEIDENSHA REPORT 2022

costs piling up due to construction being concentrated
in mountainous areas, and monitoring and maintenance,
which are vital for steady operation. To overcome thesehurdles, we are promoting value creation with a range ofcompanies, organizations, and experts by completely
standardizing equipment, reducing costs by promoting
simplification and miniaturizing construction, and making
proposals to optimize maintenance and make it smarter byleveraging ICT, IoT, etc.
We are aware that Japan, which has many mountainous
areas, the revitalization of communities built aroundhydropower generation is a unique and significant approachthat increases the attractiveness of the area, and helps tosolve societal issues by increasing clean power sources. In
order to achieve carbon neutrality by 2050, we aim to becomea “comprehensive provider” of hydropower generation
including operation,
maintenance, etc., ofhydroelectric power
plants, as well as
providingfutureproducts and services,
to utilize the energy
produced by thesewater resources asmuch as possible.
Assembling a hydraulic turbine at the Ota Works

MEIDEN ZHENGZHOU ELECTRIC CO., LTD. in Henan,
China, has developed and manufactured 800-kV surgearresters for gas-insulated switchgears, and delivered
them to an Indian thermal power station in fall of 2021.
Surge arresters are a type of equipment that makes
up the power transmission and distribution network. They
protect other equipment from power surges caused bylightning strikes, etc. In 1975, Meidensha was the first in
the world to develop gapless metal oxide surge arresters
for electric power systems that incorporated zinc oxide
element capable of withstanding multiple consecutive
lightning strikes. In 2014, this was added to the IEEE
Milestone List for great contribution to the advancementof surge arresters, by IEEE, the world’s largest electricaland electronics-related academic society. At present,
the Meiden Group produces surge arresters at sites in
Numazu; Zhengzhou, China; and Hermsdorf, Germany,and has recorded sales and deliveries in more than 70

countries around the world.
The 800-kV surge arresters shipped on this occasion
are large products to be embedded in gas-insulated
switchgears (GIS) with the following dimensions: diameter,
1.3 m; height, 3.2 m; mass, 1.45 t. This is the highestvoltage-class product handled by the Meiden Group to
this point. Ultra-highvoltage transmission
allows maximal energy
efficiency
throughminimizationoftransmission loss,
meaningthedevelopment
andmanufacture of thisproduct contributes tothe environment.

M E S S A G E

Aiming for Further Contribution to Lowering Environmental Impact
Through Miniaturization and High Performance
MEIDEN ZHENGZHOU ELECTRIC CO., LTD. was established in 2004, and is now
one of the Meiden Group’s three major manufacturing sites for surge arresters,in Japan, China, and Germany. On this occasion, by using high-resistanceelement for our 800-kV surge arresters for gas-insulated switchgears (GIS surgearresters), we achieved miniaturization of the entire tank. Going forward, we willcontinue development of high-resistance element, promote development of GIS
surge arresters that use SF6 substitute gases, achieve miniaturization and highperformance of surge arresters, and aim to contribute to the minimization ofenvironmental impact.

Ma Aiqian
Development Division
MEIDEN ZHENGZHOU ELECTRIC CO., LTD.

MEIDENSHA REPORT 2022

24

Special Feature
Examples of Value Creation to Become a Sustainability Partner

Supporting Local Disaster Prevention and Mitigation Through Real-Time Notification of Flood Levels Using
Smart Leveling Rods

Achievement of Well-Being

Saga City began using a system to provide flood information
using smart flood level rods, delivered by Meidensha
to provide a disaster prevention information service
concerning flood levels to residents and others, in April
2022. This flood information provision system uses smart
flood level rods comprising a pole fitted with a transmitter,an antenna, and a battery to gather and forward waterlevel information to a cloud server and create a flood map,
etc. This allows residents to check real-time flood danger
information on a website.
Meidensha has also provided local governments
around Japan with manhole antennas that create real-timevisualizations of sewer pipe information using IoT, and an

IoT disaster prevention monitoring system that uses LPWA
(low power wide area) networks to support flood prevention
activities, etc.
Going forward, we
will continue to contributeto safe and secure urban
development that isresilient against disasters
by building sustainableinfrastructure that is inharmony with society
and nature.
Smart leveling rods

M E S S A G E

Customers’ Comments

Akita Rinkai Treatment Center

Supporting Water Infrastructure that is Essential to Life Through Accumulated Technology and Knowledge
Meidensha’s
water
infrastructure business began
in 1922, when we delivered
the first motors to seweragetreatment facilities in Japan.
Since then, we have delivered
many products for water
treatment facilities around
Japan, such as powerreceiving and distribution
Shinya Hiyama
equipment,
generators,
Water Infrastructure Systems (WIS)
variouscontrolunits,
water
Sales & Engineering Group, Engineering
qualitymeasurement
Section 2, WIS Engineering Divisionequipment, and supervisory
control systems. In recent years, we have promoted new
initiatives such as contracted maintenance and managementof facilities, services using cloud computing systems, etc.,
water treatment and industrial wastewater treatment andrecycling using Ceramic flatsheet membrane, and flood
monitoring services that leverage IoT.
Japan has some of the world’s best water related
infrastructure, and in addition to providing high-quality
and stable water supply, Japan has achieved prosperous
lifestyles and conservation of the natural environment by
ensuring that appropriate water management is conductedin order to maintain the water quality of rivers and the ocean.
However, in recent years, the environment surrounding
water has become increasingly harsh. Issues with operating

25

MEIDENSHA REPORT 2022

and maintaining safe and stable water infrastructure include
local government revenue issues caused by the declining
population, maintaining functionality of aging equipment,
inheriting skills and techniques from experienced staff toyounger staff, and the increasing severity and frequency ofnatural disasters against the backdrop of climate change, as
exemplified by sudden downpours, etc. At the same time,society has become strongly aware of societal demands to cut
greenhouse gas emissions from water treatment processes,with an eye to achieving carbon neutrality by 2050.
As a comprehensive manufacturer of water treatment
equipment, we are constantly aware of solving issues for ourcustomers and society, and we work to provide all aspects ofsupport in the water supply and wastewater sector ; we not
only propose systems to improve the operation of facilities,
but making proposals concerning promotion of energy
conservation, introduction of renewable energy, reductionof greenhouse gas emissions, and effective use of thus-far
unutilized energy, proposals including improved operation
through the use of AI and IoT, downsizing and regional
expansion of facilities, and proposals concerning optimizationof maintenance and management tasks by promoting public–
private partnerships and offering one-stop services, etc.
We will continue to strengthen partnerships with publicagencies, local governments, and businesses, consider
issues faced by our customers, and work so that people say,
“I feel safe leaving this up to Meidensha.”

The plains area of Saga City is a low-lying area, so it is prone to flooding in theevent of heavy rainfall. Flooding occurs frequently due to localized downpours, etc.
By installing smart leveling rods, we are able to monitor flooding in real time, roadclosure, etc., and conduct prompt flood prevention activities as one of intangible
response measures. We have now commenced construction and operation of aflood information provision system, in order to disseminate flood information that had
previously only been used within administrative agencies to residents, with the aimof further utilizing disaster prevention information. This flood information will provide
a resource for residents to decide whether to evacuate, etc., and is expected to leadto faster evacuations.

Takaki KominamiRiver and Sediment Control Division,
Construction Department, Saga City

Development of an EV Multi-PCS System that Contributes to Both Decarbonization and BCP Measures
Against the backdrop ofincreased awareness ofpromoting decarbonizationand strengthening BCP
measures as an issue
that must be dealt withby local governments andcorporations, we developed
an “EV multi-PCS system” tomeet the needs of “effective
Kazuho Hasegawa utilization of renewable energy,”
Policy Planning Section, Renewable“increasing resilience,” andEnergy Sector Business Promotion“increasing utilization of
Division, Sales Planning &EVs,” leveraging technology
Administration Groupand knowledge of power
conditioners (PCS) for photovoltaic power generation andbattery storage developed by the Meiden Group.
This system includes the functions of a newly
developed EV rapid charger, as well as a conventional
photovoltaic PCS and PCS for stationary-type battery
storage. It efficiently converts power from photovoltaic,
supports batteries, and achieves “zero-carbon driving”
by providing EVs with photovoltaic power through EV

chargers. Using EVs as “mobile batteries” in addition tostationary-type batteries leads to an increased rate ofrenewable energy usage by household consumers andeffective use of emergency power sources in the eventof a disaster, and contributes to energy-resilient regional
development.
Going forward, it is anticipated that the introduction ofrenewable energy will spread throughout the whole of society
in order to achieve a carbon-free society, and initiatives
to increase resilience against increasingly frequent andsevere natural
disasters, etc.
Meidensha will
promote a rangeof proposals tocustomers
tohelp
address
both
aspectsof this social
issue using thissystem.
Group company building with EV multi-PCS system installed(Meiko Building, Gotanda, Tokyo)

MEIDENSHA REPORT 2022

26

Special Feature
Examples of Value Creation to Become a Sustainability Partner

Achievement of Well-Being

Co- Creation with Communities

Contributing to Less Strain on Workers by Extensive Weight Reduction Through Review of ProductMaterials

Developing Personnel to Support Future Natural Energy Through Visiting Lectures at High Schools

Drive robots are devices
used to drive vehicles inplace of humans whenvehicle exhaust gas tests
and fuel consumption tests
are conducted on chassis
dynamometers.
Theyachieve steady driving on
chassisdynamometers
unlike the human drivers
Akihiko Kodama changing driving conditions
R & D Section, Mobility Testing Solutions due to the physical condition
Development Experiment Department,
Mobility Testing Solutions Manufacturing and their skills.
Unit, Ota Factory Complex
Previous drive robots
weighed 70 kg, so setting
them on a vehicle required physical exertion on the part of
the workers, and was difficult. By using carbon fiber andaluminum, and reviewing form, construction, and fixture
method, we achieved a weight of 23.5 kg for this drive
robot, which is an extensive weight reduction.

The control panel to operate and control this drive robot
is Meidensha’s unique movable control panel. This alsoachieved weight reduction and miniaturization comparedwith previous products, reducing the weight from 165 kg
to 98 kg. This product is much easier to use than previous
products, as it has improved the visibility and ease of use of
the control screen, achieved design synergy with the drive
robot, and improved software, such as control functionality.
Going forward, we aim to design products that can beused by anyone, regardless of age and gender.

Vehicle testing drive robot and control panel

Aiming to Create New Markets with World-First Batch-Type normal-temperature PO-ALD Film
Deposition Technology that Uses Pure Ozone
MEIDEN NANOPROCESS INNOVATIONS, INC. developed
a world-first batch-type normal temperature PO-ALD film
deposition system that produces high-quality oxide films,
essential for the manufacture of semiconductors andoptical products.
This apparatus deposits membranes using “highconcentration/high-purity 100% ozone gas (pure ozone)“provided by a Pure Ozone Generator as oxygen source,which is one of MEIDEN NANOPROCESS INNOVATIONS,
INC.’s key devices. By using pure ozone gas, we areable to create membranes from room temperature up to
150°C, which allows for better gas wraparound and fewer
defects due to no impurities compared with ozone withlow concentration. This also makes it possible to batchprocess to produce multiple membranes at once andcreate various types, such as textured and double-sided
membranes. By adding the PO-ALD developed on thisoccasion to our product lineup, along with ALD/OER film
deposition system, which went on the market in 2020, we
aim to expand applications into a range of fields in addition
to semiconductor manufacturing.

27

MEIDENSHA REPORT 2022

Batch-type normal-temperature PO-ALD film deposition system (left) and Pure Ozone
Generator

M WINDS CO., Ltd., which
conducts operation andmaintenance services forwind farms, conductedvisiting
lecturesabout
maintenance of wind power
generation
systemandthe job of a chief electricalengineer at three highschools in Akita Prefecture
Fumio Satoin December 2021. These
Akita Sales Officelectures were conducted
M WINDS CO., Ltd.
for high school students aspart of the Akita Prefecture Wind Generator Maintenance
Personnel Education Project, with the aim of training
engineers and retaining young people in the prefecture.
As part of the presentation, the attractiveness of acareer as a chief electrical engineer was presented bysaying, “This position is responsible for the safety of boththe engineers on site and the electrical equipment” and“Although it is difficult, it is highly rewarding,” and students
were encouraged by our saying, “We would like you to begin
studying at high school with the aim of acquiring certification
as a chief electrical engineer.” As the movement to introduce

renewable energy progresses in order to work toward therealization of a carbon-free society, there are even higher
expectations for the wind power sector, and going forward, it
will be important to secure and train maintenance personnel.
The M WINDS Akita Sales Office is involved with themaintenance of 18 wind turbines at Hachiryu Wind Farm,which is owned by the Company, and eight wind turbines
owned by other companies in the area. We are enhancing
hiring from within Akita Prefecture, and focusing on training
engineers. Going forward, we will continue to contribute to
the spread and stable supply of renewable energy rooted inlocal areas by focusing on coexistence and co-creation withlocal communities for business expansion.

Cultivating a Manufacturing Perspective by Creating Safety Experience Education VR Content in
Collaboration with Universities
As
part
of
our
socialcontribution
activities
throughacademic-industrial
partnerships, MEIDENSYSTEM
SOLUTIONSCORPORATION held acurriculum to develop VR(virtual reality) content to be
Shigeki Yokoyama used in safety experienceeducation
along
with
Digital Transformation Strategy Officestudents majoring in game
MEIDEN SYSTEM SOLUTIONS
programming at Shizuoka
CORPORATION
Professional
Training
College of Industrial Technology.
We proposed this project to the college with the ideathat we hope to teach students about the mindset of
manufacturing at corporations and about VR development
is not limited to the game field, but that there is a wide
range of needs in the world, such as this safety experience.

The project was realized and on the last day of thepresentation, we received content developed by four
students that included examples of the dangers of walking
while looking at a smartphone. The Meiden Group has
conducted safety experience education since 2008 toincrease employees’ sensitivity to danger, and since then,we have also conducted education on commission byvisiting factories, worksites, etc., in response to external
demand. We plan to add the content by these students toour VR safety experience education menu during FY2022.

MEIDENSHA REPORT 2022

28

Our Approach

Climate Change Responses
Disclosure Based on TCFD* Recommendations
For many years, the Meiden Group has been aware of the major problem of climate change, and has worked to solve
this problem through business. With regard to TCFD, we endorsed the TCFD recommendations in June 2019, we beganconsidering risks and opportunities according to the TCFD framework in 2020, and we are promoting the incorporation ofthis in our strategies.
As society places more emphasis on the issue of climate change, in Medium-term Management Plan 2024, which was
released in FY2021, we pledged to “promote sustainability management,” and we aim to accelerate
promotion of management and development of businesses to realize a carbon-free society.
* TCFD: Task Force on Climate-related Financial Disclosure established by the Financial Stability Board (FSB).

Governance/Risk Management

Analysis of Climate Change Scenarios
Of the three selected scenarios, the following is the outlook under the 1.5°C Scenario.
[1.5°C Scenario] The renewable energy and EV markets expand significantly, and hydrogen continues to become more common.
Governments and municipalities

Electrical power industry• Introduction of a carbon tax (USD135/t-CO2)• Renewable energy to account for 61% of electricity

generated in the world (28% in 2020)• Tighter ZEV regulations, increased renewable energy

subsidies, and much tighter management of chemical
substances

2030
1.5°C Scenario(RCP1.9)

Banks/investors

In FY2021, with regard to all aspects of sustainability, including response to climate change, we established the ESG
Management Promotion Committee led by the President, considered strategies and measures for decarbonization, andmanaged progress. We regularly report the content of discussions to the Officers Meeting and Board of Directors.
At the same time, as the decision-making body with regard to internal environmental activities, the Meiden Group
Environmental Committee, chaired by the Executive Officer in charge of production, identifies internal issues, and deliberates
concerning environmental targets, action plans, emergency response, etc., as well as promoting and monitoring theimplementation of specific environmental management measures.
From FY2022, we have reviewed our structure by splitting the ESG Management Promotion Committee into the
Sustainability Management Strategy Committee and the Sustainability Management Promotion Committee with the aim of
separating management decisions and monitoring progress. Each committee deliberates concerning climate change-related
issues and so on.

• Use of hydrogen progresses

Transportation industry• Evaluation of contribution to sustainability and

MEIDENSHA

increased investment in highly-rated businesses• Divestment of carbon-positive businesses• Global uptake of ZEVs is 61%(4% in 2020)

Business partners

Natural disasters• Evaluation of activities to achieve sustainability and• Rainfall is 1.1 current levels or less

* There is no data
for the 1.5°C
scenario, so data
• Flooding rate is 2 current levels or lessfor the 2.0°C has• Days over 30°C are 1.3 current levels
been applied

increased demand for RE100• Suspension of trading of companies that do not meetstandards

or less

With regard to the scenarios of 2°C and less than 4°C, please refer to our
website “Disclosure Based on TCFD Recommendations.”
https://meidensha.disclosure.site/en/themes/139

Strategy
Analysis of Climate Change Scenarios
The Sustainability Promotion Bureau conducts analysis of climate change scenarios in conjunction with relevant departments.
The scenario analysis process is split into four parts and conducted annually. At the same time, major factors that could
impact business are identified, and identified risks, opportunities, and evaluations are reflected in our business strategy.
STEP 1
Identification and Materializationof Types of Scenario

STEP 2
Evaluation of Importance of
Climate Change-related Risks

STEP 3Business Impact Evaluation

STEP 4
Consideration of
Response Measures

STEP 2
Evaluation of Importance of Climate Change-related Risks
We have set out factors for climate change risks and opportunities according to the outlook of each scenario, giving reference
to the risks and opportunities in the TCFD recommendations. This clarifies the opportunities and risks for Meidensha.
Factors for Risks and Opportunities• Opportunities to reduce GHG emissions

Societal Scenario

Opportunities and risks for Meidensha

The transport industry becomescarbon-free

Expanded EV business

EV business/ Power Conditioning -related
products

Increased proportion of renewable energy

Expanded renewable energy business

Wind/ hydroelectric/ photovoltaic/hydrogen-related power transmission &distribution products

Restrictions on chemical substances such
as SF6

Expanded Power T&D business

Zero SF6 products/
environment-friendly-type products• Changing mindset of stakeholders

Increased customer demand for being
carbon-free

Increased demand for green products

Green products• Opportunities to reduce GHG emissions

Shift to low-carbon transportation

Increased demand for rail business

Rail-related products and services

Introduction of a carbon tax

Increased manufacturing costs
Increased procurement costs

All companies

Increased flooding

Suspension of operation/supply chain
collapse
Increased costs to respond to flooding

Production sites• Changing mindset of stakeholders

Increased pressure on carbon-positive
businesses

Reduced sales of relevant businesses

Diesel/gas engine generators• Rising average temperature

Worse labor environment

Increased personnel expenses at thesite

Manufacturing/maintenance/construction
service business units• Increased proportion of renewable energy

Increased cost of electricity for industry

Increased power procurement costs

All companies• Increased government subsidies• Increased government subsidies• Accelerated technological development

STEP 1• Transition to a decentralized society

Identification and Materialization of Types of Scenario
As recommended by TCFD, we identified scenarios at multiple levels of warming, including a scenario of less than 2°C, andconducted analysis accordingly. In FY2021, we considered two scenarios, namely a scenario of 2°C (RCP2.6) and a scenario
of less than 4°C (RCP6.0). This fiscal year, we added the increasingly likely scenario of 1.5°C (RCP1.9) according to therecent status of discussions, etc., at COP26 held in November 2021.
We have also arranged outlooks and scenarios for 2030 based on these scenarios according to management frameworks
such as five forces analysis, using international published data from the IEA, IPCC, etc., as well as numerical data publishedby Japanese government institutions, etc.
Reference Scenarios
1.5°C Scenario
2°C ScenarioLess than 4°C Scenario• Tightening of legal restrictions to reduce

GHG emissions• Electricity companies becoming

carbon-free• Opportunities to reduce GHG emissions• Tightening of legal restrictions• Increased frequency of extreme weather

Net zero by 2050 (NZE2050)

IEA (2020)

RCP1.9IPCC (2021)

Sustainable development scenario (SDS)

IEA (2020)

RCP2.6IPCC (2014)

Stated policy scenario (STEPS)IEA (2020)

RCP6.0IPCC (2014)

Relevant Businesses

events• Opportunities to reduce GHG emissions* Examples of main scenarios

29

MEIDENSHA REPORT 2022

MEIDENSHA REPORT 2022

30

Our Approach

Climate Change Responses
STEP 3Business Impact Evaluation
We are evaluating business impact through discussions with relevant parties within the Company, such as the Management
Planning Headquarters, the Accounting and Finance Headquarters, the Governance Headquarters, and business units,
based on the scenarios and outlooks set out in Step 1 and the opportunities and risks set out in Step 2.
In the course of this, we screened matters that have a particularly large impact on businesses by focusing on the twoaxes of “impact on operating income” and “likelihood of occurrence in a business” in FY2030, and conducted detailed
analysis of these matters.
We monitored outcomes for matters with a large impact, based on market growth for each scenario. We made quantitative
calculations with some assumptions, and used qualitative methods for matters where calculation was not possible.
* The values are mostly calculated based on market growth rate, and they are not a promise of the Company’s targets.

Impact on operating income (estimate)

Likelihood of occurrence in a business in 2030

Very large: ±10 billion yen or more Large: ±1 billion yen or more
Medium: ±0.1 – 1 billion yen
Small: ±less than 0.1 billion yen

High:High probability of occurrence
Medium: Occurrence is possible, but cannot be predicted with confidence
Low:
Only occur in the scenarios

Opportunities andrisks for Meidensha

Relevant businesses

Calculation formula

1.5°C

2°C

Less
than 4°C

Expansion of the EV business

EV business

Most recent average net sales ZEVstock growth rate

Very
large

Very
large

Large

Increased proportion ofrenewable energy

Expanded renewable energy
business

Wind/hydroelectric/photovoltaic
storage/hydrogen-related

Most recent net sales × Japaneserenewable power volume

MediumMediumSmall

Regulation of chemical
substances such as SF6

Expanded Power T&D business

Zero SF6 products/environmentfriendly-type products

Most recent net sales of relevant
products × VCB market growth rate

MediumIncreased customer demandfor being carbon-free

Increased demand for green
products

Green products* Unable to calculate at present due torevision of the green product standards

ー

ー

ー

Introduction of a carbon tax

Increased manufacturing costs
Increased procurement costs

All companies

2030 Scope 1, 2, and 3 emissions ×carbon tax

Very
large

Large

N/A

Increased flooding

Suspension of operation/
supply chain collapse
Increased costs to respond toflooding

Production sites

・2030 damage per instance using tools
provided by the cabinet office・Anticipated sum × rate of occurrence
for each scenario, etc.

Very
large

Large

Very
large

Increased pressure on
carbon-positive businesses

Reduced sales of relevantbusinesses

Diesel/gas engine generators

2030 net sales of relevant businesses ×situation for each scenario

MediumMediumN/A

Worse labor environment

Increased personnel expenses
at the site

Manufacturing/maintenance/
construction service business units

2030 on-site personnel × medical
treatment/insurance expenses

Small

Small

MediumIncreased cost of electricity
for industry

Increased power procurementcosts

All companies

2030 power consumption × rate of cost
increase of industrial electricity

Medium

Small

Small

MediumSmall

Consideration of Response Measures
We considered development of strategies to grasp opportunities and measures to mitigate risks according to the situation of
the Company, based on the outcomes calculated in Step 3.

Opportunities

Expansion of the Power T&D business due to regulation of chemical substances such as SF6 gas
Decrease in fuel procurement costs due to falling fossil fuel prices
Increased demand for green products due to increased customer demand for being carbon-free
Expansion of railway-related businesses due to the transport industry becoming carbon-free

Risks

Suspension of operation/supply chain collapse due to increased flooding
Increased manufacturing and procurement costs due to carbon taxes
Increased industrial electricity charges due to increased proportion of renewable energy
Decreased sales by some businesses due to increased pressure on carbon-positive businesses
Increased on-site personnel costs due to rising average temperatures

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MEIDENSHA REPORT 2022

* SBT Initiative: An international initiative by the United Nations Global Compact (UNGC), the Worldwide Fund for
Nature (WWF), the CDP, and the World Resources Institute (WRI).

Environmental metrics and targets
EV Business

SecondMeidenEnvironmental
VisionFY2021 net sales

FY2028 net sales targets

24.7 billion yen

100 billion yen

FY2021
TargetExpansion of businesses that contribute to the environment leading toopportunities as a result of changes due to climate change[Electricity generation] Renewable energy (hydro, wind, photovoltaic batteries)[Electricity transmission] Transmission and distribution (SF6-free)[Electricity usage] Transportation (EV/HEV drive components, railway)[Common] Products and services with a low environmental impact (green products)
Enhancement of internal measures to reduce risks due to climate change[Internal carbon reduction] Scope 1 and 2 reductions[Flood prevention measures] BCP-related measures[Increased industrial electricity charges] Consideration of in-house
consumption, etc.
[Worse on-site labor environment] Site reforms
Review of direction of environmentally negative businesses[Business portfolio] Review including environmental factors

RecordFY2024
Target

FY2030TargetFY2040RE100
FY2050Emissions from businessactivities (Scope 1, 2)

Japan: Emissions
Total reduction: -3% (compared to
FY2019)Overseas*1: Emissions
Total reduction: -1% (compared to
FY2019)Japan: -13%
(compared to FY2019)
Overseas: +12%*2(compared to FY2019)6% reduction(compared to
FY2019)30% reduction(compared to
FY2019)Emissions from productuse (Scope 3)

Build a foundation for category 11
reductions (investigate and calculate
for main businesses)

Conduct LCA for threebusiness units

6% reduction(compared to
FY2019)15% reduction(compared to
FY2019)

Achievementof carbon
neutrality*1 Main overseas production sites*2 Emissions volume increased as MEIDEN T&D (INDIA) LIMITED was added to the Meiden Group through business expansion in FY2021.

Main Measures to Cut Greenhouse Gas
FY2030 greenhouse gas emissions reduction targets

Emissions from business activities (Scope 1 +2)
30% reduction (compared to FY2019)

STEP 4

Expansion of the renewable energy business due to increase proportion of renewable energy

We see changes due to climate change as business opportunities, and are implementing strategies to mitigate risks.
From a business perspective, we will particularly contribute to the creation of a carbon-free society through further
expansion of the EV and Renewable Energy businesses. We also released the Second Meiden Environmental Vision as ourenvironmental goals in FY2021, and we have disclosed 2030 GHG reduction
targets for scopes 1, 2, and 3 in order to reduce internal risks. These goals
have received SBT Initiative* recognition. We will work with our suppliers toachieve our targets.
In addition, we pledged to reach RE100 by 2040 and carbon neutrality by
2050, in November 2021, as our medium- to long-term targets.

Impact on 2030 operating income

The transport industry
becomes carbon-free

Expansion of the EV business due to the transport industry becoming carbon-free

Metrics and Targets

Emissions from product use (Scope 3, category 11)
15% reduction (compared to FY2019)

Reduction measures (extract)●

Replacing SF6 gas (replacement with dry air, etc.)●

Capital investment (replacing aging equipment, introducing high-efficiency equipment,●

Renewable energy procurement (non-fossil fuel certificate, power menu, etc.)●

Switching company-owned cars to electric vehicles●

Environment-friendly type product design (eliminating use of SF6 gas, and downsizing●

Revising business portfolio (increasing ratio of businesses with low carbon emissions per unit

replacing gas with electricity, etc.)

products and making them more efficient)of sales such as EV, maintenance services and small and medium hydroelectric systems)

Overall●

Generating innovation●

Introducing internal carbon pricing

Progress and Future Path
Although we have identified the growth opportunities and risks facing the Meiden Group through analysis of scenarios basedon the TCFD recommendations, in most instances, calculation of impact is merely a rough estimate, and further precision
is needed. Furthermore, we are promoting response to climate-related metric categories across multiple industries in the
TCFD recommendations, which require new disclosure. promotion. Along with this, we are considering establishing ESG(environment, social, governance) metrics, incorporating them in our standards for calculating officers’ remuneration, andfurther strengthening governance, in order to increase the effectiveness of sustainability management promotion.
MEIDENSHA REPORT 2022

32

Our Approach

Manufacturing Strategy
Enhancing Manufacturing Capabilities
We gave divided products manufactured by the Meiden Group
into “mass production,” “equipment,” and “systems,” andestablished manufacturing strategies suited to the featuresof each group, and we will enhance product competitivenessby improving quality, cost, delivery, safety, and environment.
In this way, we will not only improve the quality of products,
but by reforming the awareness of employees involved
with manufacturing, we will foster worksites with a senseof achievement and growth, and remain a company that is
attractive to the earth, society, and people.

Progress of FY2021 Initiatives
Priority policies under Medium-term Management Plan 2024
are “reduce costs and enhance product competitiveness,”“enhance quality control,” “improve occupational healthand safety,” “establish manufacturing activities to achieve
the Environmental Vision,” and “improve production sites.”In FY2021, we introduced a factory complex system,
wherein we take our 11 current factories and convert themto units before amalgamating them into five factories.
This will accelerate the integration of people, technology,
and property owned by each unit, and promote morecompetitive production activities.
We are promoting reforms by using improvements
to the flow of production sites and a system to visualize
production using IoT. We have promoted rectification ofpanels and rotating machinery assembly lines, as well as
reducing work in progress (WIP) and shortening lead times.
In EV production lines, we greatly improved quality andproductivity by securing new construction methods fromexisting production lines such as Kofu, and improving therate of automation. Furthermore, we improved the profit
structure by reducing fixed costs through promotion of
sharing of personnel between all companies according toincreases or decreases in production load.

Policy for Initiatives from FY2022
We will continue activities to build Meiden “monozukuri”
standards with the aim of growing while feeling fulfilled andbeing a workplace where enthusiastic work can continue.
Specifically, we will promote activities to develop production
metrics, standardize work, and shorten lead times, as wellas enhance the connection between estimation, productionplans, and production record.
Our production strategy is divided into the threegroups of “mass production,” “equipment,” and “systems.”
In “mass production,” we will promote review of productconstruction giving consideration to ease of manufacture,
and application of robotics, image-based inspection, etc. In“equipment,” we will promote accelerated automatic designand development and introduction of work assistance tools.

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MEIDENSHA REPORT 2022

In “systems,” we will promote initiatives to eliminate waste
through visualization of production processes using IoT.

Supply Chain Management
Recently, we have faced harsh external conditions when
procuring materials, including insufficient supply ofsemiconductors, electronic components, etc., extendeddelivery date, and extensive price increases of materials
and components. Some suppliers were also forced tosuspend operations for a time, as several countries have
implemented measures such as lockdowns in response
to COVID-19. Furthermore, an impact that delayeddeliveries caused by forced air and sea route detours, andincreased transportation costs and material procurement
costs because of the sharp rise in crude oil prices, due toheightened geopolitical risks has been actualized.
In order to avoid these procurement risks, we areenhancing activities such as searching for new suppliers,and promoting ordering from multiple suppliers. We arealso doing our best to implement measures including
placing orders in advance, securing appropriate inventory,
and selecting optimal transportation routes and packaging
in conjunction with the Production Management Business
Division of each unit, in order to minimize the impact ofmaterials cost increases and delays.

continue to create high-quality products. We value our spirit of“craftsmanship” and work to conduct quality control activities
in order to be trusted and depended on by customers andsociety. We will work to provide safe and high-quality products
and services to satisfy our customers and improve profits byeliminating unnecessary costs through that each employee
is not only aware of social responsibility in relation to Meiden
Group’s products and services, as well as the scale of the
impact that defects could have on society, but engage inquality control activities from the perspective of “no defective
unit accepted,” “no defective unit made in our factory,” and“no defective unit shall leave our factory.”
We are broadening the application of Quality Control
Process Chart (QC Process Chart) that is mainly employedby the Manufacturing Business Unit to the Sales Business
Unit and the Technology Business unit under the name of the
QR map. By applying the QR map, we are able to prevent
tasks from being overlooked and ensure that everyone
completes tasks at the same level, which enables us toreduce the risk of defects arising due to variation between
people in charge. The QR map is linked to standards andprocedures in order to promote tasks in each process. We
confirm effectiveness by conducting an overall examination
and revision of these standards and procedures to ensurethat their content relates to prevention of recurrence of
defects or occurrence of similar defects. Furthermore, weare promoting checks of whether QC process charts arebeing filled in without omission, in order to confirm thateach process is being thoroughly conducted.

Topics

Quality Control
For the Meiden Group, which is involved with social
infrastructure, it is an important responsibility to steadily

The Meiden Group views the safety and health of
employees as being central to management value, and we
aim to implement “realizing a workplace environment thatallows employees to maximize their abilities,” as included
in our Corporate Code of Conduct, and be a leading healthand safety company, through revitalization of health andsafety activities at all national and local businesses.
So far, we have conducted a range of initiatives toprevent industrial accidents such as conducting KYK (riskanticipation activities), risk assessment, introducing safety
patrols, and safety and health management systems(ISO 45001). Since FY2021, due to limitations on travel
between regions as a result of the impact of COVID-19, we
have conducted remote safety patrols using remote tools
for sites subject to patrols across multiple locations andaffiliates. We were able to gain many hints to improve site
health and safety based on new realizations and plenty ofadvice from the view of many participants.
The Meiden Group has also conducted safety
experience education since 2008 to increase Group
employees’ sensitivity to danger, and since 2016, we have
expanded the scope of eligible participants to outside
the Company by conducting education on commission
at clients’ factories, worksites, etc. To this point, morethan 27,000 people have received this education, and it
has been well reviewed. In addition to lectures, we also
continue to devote ourselves to the development of safety
education that is expected to be highly effective, featuring
virtual experiences of industrial accidents using VR.

TopicsPromoting Sustainable Procurement
The Meiden Group conducts fair and just trade, andpromotes sustainable procurement in conjunction
with business partners, in order to contribute to therealization of a sustainable society.
In July 2022, we updated the Meiden Group
Sustainable Procurement Guidelines. We requestthat all of our business partners comply with themas well as propose adopting green procurement.
We are also working to build a sustainable supply
chain by strengthening partnerships such as building
positive relationships with business partners throughcommunication including “partners meetings,”
ongoing support toacquire environmental
management systems,
andsupportto
implement information
security and health Visit to business partners and award
presentation (FY2021)
and safety measures.

Occupational Health and Safety

Enhancement of the Functionality of the Meiden
Customer Center
In June 2022, we enhanced the functionality of the Meiden
Customer Center to change it from an organization thatmainly responds to inquiries, as it had been previously,
to an organization that serves as an information hub for
business expansion. In addition to expanding the scope of
products that support remote monitoring and operation,
we also link gathered equipment monitoring information,customer information (inquiries, obstacles, requirements),
and maintenance information (regular inspections, simple
inspections, etc.) and share it, analyze it, and use within
the Meiden Group. Through this, we will create new
added value, such as support for business activities,
optimal maintenanceand management,
and proposals for
replacementof
equipment, and aim
to increase customer
satisfaction by further
enhancing connection
with customers.
24-Hour Customer Center

TopicsDevelopment of Metaverse Hands-on Safety
Educational Program
In May 2022, we developed Metaverse hands-on
safety educational program, which allows people
to access safety experience education through theMetaverse. This development has achieved the
Meiden Group’s first attempt at non-contact safety
experience education in the Metaverse, in conjunction
with Infiniteloop Co., Ltd., which is a developerof web applications, etc., combining Infiniteloop’s
Metaverse technology with our education knowhow.

Education in the Metaverse(Numazu, Shizuoka)

MEIDENSHA REPORT 2022

34

Our Approach

Promotion of Digital Transformation

Respect for Human Rights

Promotion of Agile Thinking

Development of Digital Professionals

The Meiden Group Human Rights Policy

Relief and Remedy

Meidensha introduced agile thinking in FY2020, in orderto respond to exceedingly changing business conditions.
Agile thinking is not merely an IT development technique;rather, it is a technique and mindset to possess agility todeal with an uncertain and changeful society. Therefore,
we not only introduced agile development processes; we
aim to provide new customer value in an agile manner,
including a design thinking and lean startups. In contrast
with conventional methods that have ensured we respondto customer demands that rarely change and value
certainty and stability, this approach places more emphasis
on responsiveness to changes, speed and value.
In FY2022, we constructed a site to promote activities
within the Numazu Works, while implementing agile inactual projects, we are promoting a reform of mindset
and development processes that supports this, in order toaccelerate activities. Furthermore, in the current mediumterm management plan, we aim to use the site as a cocreation site as well as a facility driving the creation of newvalue.

Irrespective of digital transformation（DX）, it is essential
to have digital professionals to succeed in business.
Meidensha considers ICT to be a basic skill of digitalprofessionals. ICT is a valuable tool that is applied to all lines
of work, and has the potential to change society. Therefore,
four years ago, we introduced an education program for all
new employees to learn ICT literacy, which is necessary to
our employees.
In fiscal 2022, we restructured this education to divide
into "ICT Primer," which is to understand a concept of ICT,and “ICT Basic Education,” which allows participants toexperience the benefits of ICT through practical exercises
while learning basic ICT knowledge. In this way, we
are laying a foundation to develop digital professionals.
Furthermore, in order to discover unsolved customer needs
and create new value, it is necessary to have different skills
and mindsets from before, such as a design thinking. At
present, all business units are working to develop digitalprofessionals, while we are conducting digital education
activities for all companies in order to create new value,
under the leadership of the Corporate DX Promotion Group.

Since it was founded, the Meiden Group has created andsupplied a variety of technologies, products, and services,with a focus on electrical equipment that supportssocial infrastructure, and contributed to the sustainable
development of society.
Respect for human rights is the foundation of ourbusiness activities to realize our corporate philosophies
of “illuminating a more affluent tomorrow” and “forcustomer peace of mind and satisfaction.” Through its
business activities, the Meiden Group will create a joyful
and sustainable society for everyone, and comply withinternational human rights norms as indicated by the
Meiden Group Corporate Code of Conduct.
We will also identify, prevent, and mitigate risks andimpacts relating to human rights throughout our activities,
including in the supply chain, and endeavor to disclose our
responses on an ongoing basis.

●

TopicsIntroduction of the IoT for Extra High Voltage
Substations to Achieve Smart MaintenanceIn August 2021, we introduced IoT for power receiving
and transforming equipment used in substations at
the extra high voltage substations at the Numazu
Works rebuild, and commenced a remote monitoring
PoC (proof of concept) as an initiative to achievesmart maintenance. We will create added value suchas drafting forms, sending emails when faults occur,
and analyzing trends through graphs, by constantly
collecting data necessary for maintenance andmanagement of major equipment. Furthermore,
it is possible to reduce visual inspection items bymore than 85% by connecting to IoT for inspection
tasks using data collected by multiple cameras andsensors.
Going forward, we will leverage the results of this
PoC to provide safety and security through smart
maintenanceand make therealization ofwork efficiency
more certain.

Camera for measuring oil temperature of installed
extra high voltage transformers

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MEIDENSHA REPORT 2022

Enhancement of Operationl Reform andImprovement through Digitalization
Previously, we implemented digitalization of work andreviewed work styles by expanding the introduction of RPA(robotic process automation), which is a work process
automation solution, increasing efficiency of handlingenquiries through the introduction of an AI chatbot for theinternal portal, and promoting reforms of work processes,
etc., by paperless offices and workflows.
Going forward, in order to realize our vision for 10
years in the future, we will reform our internal systems,
which are currently optimized for each business unit andfactory from the perspective of overall optimization, andpromote development of infrastructure to realize digitaltransformation (DX). We will also expand our education
website and content to enhance employees’ IT skills.

The Meiden Group Human Rights Policy
https://meidensha.disclosure.site/en/themes/96

If a human rights violation occurs due to Meidensha’s
businesses, employees are able to report to the Compliance
Hotline, the Harassment Consultation Hotline, and theexternal Public Whistleblower System. All stakeholders(including individuals, local residents, etc.) can make inquiries
from outside the company using our external helpline.
The Compliance Committee investigates information thatis brought to the above points of contact, and, having
confirmed the content, consults lawyers before resolving
issues if necessary. Furthermore, our system effectively
manages information concerning whistleblowers’ names,
etc., protects whistleblowers, and enables anonymous
consultation, in accordance with national guidelines. We work
to ensure that whistleblowers experience no disadvantage
and improve the dependability of our whistleblower system.

Respecting Human Rights ThroughBusiness Activities●

Major Initiatives to Respect Human Rights
Previous Major Initiatives
Compliance with international human rights norms● Conducting human rights discussions at each workplace during Human Rights Week
● Promoting diversity management● Rollout of Smart Work 2024
● Rollout of occupational health and safety activities● Establishment and operation of the compliance hotline, the Harassment Consultation
Hotline, and the Public Whistleblower Hotline● Conducting evaluations of suppliers, including human rights and labor, etc.
●

New Initiatives from FY2021 to the First Half of FY2022
Development of the Meiden Group Human Rights Policy● Conducting human rights education for officers● Revision of the Meiden Group Corporate Code of Conduct● Revision of the Meiden Group Guidelines for Sustainable Procurement●

Future Issues
Conducting ongoing human rights due diligence● Dialog and discussion with stakeholders● Fostering awareness of respect for human rights and continuation of activities toensure penetration

Establishment of a Compliance Hotline

Human rights education for officers and employees

We are working to understand international norms(Universal Declaration of Human Rights and International
Bill of Human rights) and to conduct education activities
focused on human rights in order to ensure “respect forhuman rights,” which is listed in the Corporate Code of
Conduct, throughout the entire Meiden Group. We also
comply with all relevant laws concerning the prohibition offorced labor and abolition of child labor. We are conducting
various types of training as educational activities to achieve
respect for fundamental human rights.
We conduct periodic group training and video educational
activities relating to compliance and harassment for all Group
employees, and improve understanding and awareness byproviding opportunities for individuals to reexamine theirworkplace and views. We have also expanded the anger
management training for managers to include all employees.
Through the training, we raise awareness of the need torespect the personalities and ideas of others.

●

Refer to “human rights” on the website with regard to respect for human rights.
https://meidensha.disclosure.site/en/themes/96

Content of Human Rights Training (FY2021)
Training TypeInternal chatbot, Fukuro Meiden

Participants

Human Rights Themes Addressed

Workplace discussions relating to human rights

All Group employees

Link between business and human rights

Harassment education

All Group employees

Prevention of various types of harassment

Compliance manager training

Compliance managers

Responses to consultations regarding harassment, etc.

Anger management training

All Group employees

Understanding and controlling anger, which can lead to harassment

Mental health training

Conducted in each region

Correct understanding and prevention of mental illness, and prohibition of discrimination

MEIDENSHA REPORT 2022

36

Our Approach

Development of Personnel That Are Able
to Implement Our Business Strategy

HR Strategy

Extensive Technical Education
We established the Meiden Youth Academy aimed atincreasing the technological capabilities of both technicaland administrative young workers. We are promoting
professional development concerning digital transformation,
by focusing on education of ICT fundamentals and design
thinking, which are essential for electricity knowledge and thepromotion of digital transformation. At the technical training
center, Manabi-ya, the aims of which are early developmentof skills and passing on technology and skills to employees,
we systematically develop and increase the level of technicalpersonnel, using experiential education that employs VR,
AR, and MR.
In FY2022, we will focus
on digital skills educationsuch as exercises forcontrolling actual equipment
through programming, anddata analysis exercises.
Blackout procedure training using MR●

Human resources are the mostimportant foundation and asset for
supporting business
Recently, the complexity of issues faced by society has
been increasing, and we have entered a time when it isdifficult to predict the future. In these conditions, it isimportant to have human resources who can actively
create value through flexible thinking and bold actions inorder to produce solutions to address the issues facing theworld.
Meidensha considers human resources to be its
most important asset. In order for independent humanresources who work positively and proactively, also
those with diverse beliefs and backgrounds, to maximize
their individual abilities and produce the best results as ateam, it is important to promote “diversity and inclusion”
further. As well as it is to create a workplace that ensures
psychological safety, where everyone can participate in ahealthy state both physically and mentally. These initiatives
will enhance human capital to increase corporate value.

Promotion of Diversity & Inclusion
By promoting diversity and inclusion, we aim to create anorganization that respects the diverse backgrounds andvalues of each employee, while enhancing co-creation andinnovation.
In FY2022, we established the Diversity Policy Planning& Promotion Office as an evolution of the HR Development& Diversity Promotion Project launched in the previous
fiscal year. As specific measures, we are promoting plans

for female employees such as opinion exchange meetings
with an outside director and support systems from officers.
Apart from that, we focus on selective training by purpose,training for overseas local staff, etc. With regard to workstyle reforms, we are also promoting the reduction of
total actual annual working hours by rolling out Smart
Work 2024, and the renewal of satellite offices aimed at
expanding flexible work styles. We will continue to promote“diversity and inclusion,” in order to increase employee
productivity and creativity, as well as fostering a more
fulfilling workplace culture.

Initiatives for FY2022 and Beyond
As initiatives from FY2022 onwards, we will promotecorrect understanding of diversity and inclusion for each
employee, and accelerate the rollout of our diversity
strategy. Specifically, in order to integrate with the
management, we will incorporate diversity metrics in eachdepartment’s targets, internationalize Meidensha, expand
dialogue and gather opinions with overseas subsidiaries,
promote correct understanding of LGBTQ among
employees and encourage uptake of parental leave among
male employees.
Main KPIs (as of 2022). Brackets indicate FY2030 targets

・Number of Female officer class:1

At least
inside officer in FY2024(at least 3, of which at least 1 is an executive officer)

・Number of non-Japanese presidents of local subsidiaries:

3

At leastpresidents of local subsidiaries in FY2024(at least 5, of which at least 1 is an executive officer)

FY2021 Initiatives and Results●

Opinion Exchange Meeting Between Female
Employees and a Female Outside Director

We held an opinion exchange meeting between Outside
Director Keiko Hayashi and female employees in order toprovide an opportunity for female employees to discuss
their career development. They shared opinions freely
such as “unconscious bias and barriers concerning
career development existing in the workplace” and also
on “individual strategies or requests to the Company
and others to overcome them.” Expectations andaims of the Company were confirmed, and employees
expanded their networks. All participants indicated that
their mindset hadchanged throughthe project andthis had led toawareness reform.
Female employees’ opinion exchange meeting

37

MEIDENSHA REPORT 2022●

Manager Development Coaching for Overseas
Local Staff

It is important to promote localization of subsidiarymanagement in order for the Meiden Group to further
accelerate overseas business expansion. In the past, it
has been most common to have personnel sent fromJapan to manage local subsidiaries; however, in order toensure business development that deeply understands
the needs of the relevant country’s society, andmanagement continuity, it is necessary to increase theappointment of local staff.
In addition to our previous training program foroverseas management candidates and technology andskills training, we are conducting new training programsto actively contribute to management. In FY2021,
four local staff of THAI MEIDENSHA CO., LTD. tookcoaching-style training aimed at both personal growth ofthe participants and organizational reform.

(mixed reality)

Systematic Development of Management Personnel
Meidensha implements the Career Development
Management Program for the purpose of systematically andstrategically developing the next generation of personnel.
We aim to develop personnel with a broad perspective
and outlook exceeding the bounds of their own areasof specialization and roles by accepting applications
from young and mid-level personnel to dispatch to adultpostgraduate schools and engage in professional exchangewith people from other business units and Group companies,
engage in cultural exchange through placement outside of
the Group and at government institutions, etc. In addition,
we aim to increase creativity and foster innovative thinking
by introducing the Innovation Professional Development
Program for the next generation of management.
●

Initiatives to Improve Employee
Engagement
Meidensha introduced NPS®* in order to face all stakeholders
with sincerity and build relationships of trust without hubris.
In FY2021, we introduced it to employees in advance andanalyzed metrics that indicate desire and attachment to
independently make contribution with their sympathy withdirection and ideal state of being of the company. In FY2022,
we set these metrics as one of our non-financial management
goals. Going forward, we will promote identification of issues
and consideration of measures based on this analysis, andconsider increasing the scope of application to stakeholders
other than employees.

Creating a Comfortable Workplace
Environment
As part of Smart Work 2024, as included in the current
medium-term management plan, we have implemented
strategies to increase productivity and realize a comfortableworkplace environment.
In FY2021, we renovated the satellite office at Nagoya
Works and created a new community space. In addition
to use for internal and external meetings and as a satellite
office for employees on business trips, it is useful for taking
a break or refreshing a mind.
In addition to expanding systems for balancing
childcare/nursing care and work, we have established adispatch staffing agency to promote flexible work styles
for seniors following the mandatory retirement age of65, established the “Elder System” to allow work up to
the age of 70, and utilized a special subsidiary (MEIDEN
UNIVERSAL SERVICE LTD.) to create workplaces forpeople with intellectual disabilities, as part of efforts tocreate a comfortable workplace environment for everyone.

Eruboshi

Platinum Kurumin

Promoting Health and Productivity
Management
In order to realize the Meiden Group’s corporate philosophyof “illuminating a more affluent tomorrow,” it is importantfor employees to maintain their physical and mental health,and work in a lively and rewarding environment. We arepromoting initiatives as an organization to support the healthof each individual such as sharing the belief that “nothingis more valuable than good health” with all employees
and supporting employees’ own health activities. Throughthese actions, the Meiden Group is working to remain aleader in health management.
With these being evaluated, Meidensha was selected
for the “Health and Productivity Management Outstanding
Organization (White 500)” and the “Health and Productivity
Management Brand” for the second consecutive year.

Main KPI (as of 2022)
NPS® for employees

10 % improvement by FY2024 (compared to FY2021)* NPS®: Net Promoter Score
NPS® is a registered trademark of Bain & Company, Fred Reichheld, and Satmetrix
Systems.

MEIDENSHA REPORT 2022

38

Our Approach

Innovation Strategy
Aiming to Improve Awareness toCreate a New Society

Providing New Value ThroughInnovation

Examples of Initiatives to Generate
Innovation

Recently, the external environment surrounding the society
and the economy has been undergoing major changes,
and we are deeply aware of the importance of corporate
innovation, not only as mere technological innovation, butalso as a business survival strategy and for the provisionof new value to the world. Under these circumstances,
Meidensha established the Strategic Innovations
Acceleration Committee in FY2021, and in the year sincethen, we have promoted activities such as organization of
the innovation process, securing and training innovative
personnel, and exploration and co-creation of new social
needs, in order to take on the challenge of creating a newsociety for the future in 2030 and 2050.

As part of “promoting ambidexterity management” asincluded in Medium-term Management Plan 2024, we
aim to accelerate the creation of a new society throughinnovation in Meidensha’s business activities.
In order for Meidensha to contribute to solving social
issues, including environmental issues, we need to expand
the business into new areas outside the framework of ourexisting business domain, and it is essential to engage ininnovation and launch new businesses. To this end, we
aim to use revenue gained from existing businesses toactively search for and invest in new areas, and develop
and commercialize organizational and individual ideas.
Leveraging the technology, know-how, and knowledge
developed by Meidensha to this point, we will achievecarbon neutrality, create new businesses in view of buildinga resilient society and provide products and services that
contribute to labor saving and greater efficiency throughcutting-edge digital technology. Furthermore, we aim toprovide new value that invigorates society, by searching for
new markets and technologies.
Co-creation with other companies is also an extremely
powerful approach toward the creation of a new society.
Therefore, we will quickly respond to social issues andneeds, while achieving co-creation to devise and implement
solutions, by increasing opportunities for dialogue withcustomers and partner companies. By taking the lead in
the creation of a new society, we aim to be a company that
achieves perpetual growth and social contribution.

●

Medium-term Management Plan 2024 Key
Action Items
1. Organization of the innovation process●Introduction of a stage-gate system for new
business development process●
Agile resource allocation + swift decision-making
2. Securing and training innovative personnel●Promotion of human resource development
program and seminars by experts●In-company recruitment of innovative personnel●Promotion of systems that lead to fostering
positive mindsets and culture reform
3. Exploration and co-creation of new social needs●Transmission of information concerning
innovation activities●
Utilization of venture capital funds

Shift earnings obtained in existing Fields to investment in new Fields, and accelerate the creation of a new society.
Create new value that supports a new society (Target: Net sales of ¥5 billion in FY2024)

by shifting earnings obtained in existing businesses to active
exploration of and investment in new fields

Products andservices that
contribute tocarbon neutrality

Establish a budget for investment in new fields, andThree-pronged structure supporting innovation tostrengthen both individuals and the organization
1) Organization of the innovation process
2) Training of diverse personnel to handle new development
3) Exploration and co-creation of new social needs

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MEIDENSHA REPORT 2022

New
Existing Peripheral

Marketdevelop and commercialize organizational
and individual ideas

Services that savehuman resources andincrease efficiency
through the use ofdigital solutions
BCP
business that
contributes to asafe and securesociety

Excitement
Cultivate the existing peripheral area

Existing

Peripheral

Excitement

Promoting ambidexterity management

New

Technology, products, and services

Provide new valuethat excites people

Establishment of the MAST ProjectIn FY2022, we established the MAST Project led by an officer
responsible for innovation to accelerate innovation activities
built on initiatives for human resource development, cocreation, investigation, and theme promotion. The MAST
Project was named by combining the Japanese first lettersof “Meidensha,” “ashita” (tomorrow), “sozo” (creation),and “thinking,” while also carrying the meaning of theword “mast,” with the idea that we can be propelled by
the winds of the world through our activities, on the themeof “Meidensha’s tomorrow, thinking about and creating for
10 years in the future.” Under the project, we continuously
follow up according to the content of each theme. With
the key words of “action modification,” “co-creation,” and“site awareness,” we will further establish and expand
innovation activities by properly understanding social
issues while demonstrating the knowledge and know-how
possessed by individuals in external fields.
Organization of the innovation process
The process up to employees engaging in new
business themes is divided into the stages of “ideageneration,” “planning,” “development,” “consideration ofcommercialization,” and “business creation,” from the initialidea through to commercialization, and we have introduced
a stage-gate system, wherein quantitative evaluation
standards must be cleared for each stage prior to moving
on to the next one. At each gate, the hypothesis of thebusiness plan is tested, and the budget and resources
are allocated after undergoing scrutiny under the MAST
Project. Under the project, we continuously follow up
according to the content of each theme.
●

Training innovative personnel
We arrange innovative personnel according to a pyramid
structure. From the top, they are innovators that are able
to start their own businesses, core personnel that engage
with actual themes, people who propose themes that theywould like to specifically engage with in some manner, andbase personnel (interested personnel) that are interested ininnovation.
At the end, through various strategies, the aim is to
produce many innovators with the skills to take the leadand develop strategies for new businesses. Therefore, atpresent, we are working to increase the number of basepersonnel, who have an interest in or affinity for creating
new businesses, and promote participation in innovation
activities through expansion of “10% culture,” wherein timeis allocated for new ventures outside of a person’s mainrole.
●

Co-creation and Implementation
Innovators

Target Personnel to aim forCommercialize and Entrepreneur
Initiator/project leader Corporate mindset,
strategy-development skillset

Core Personnel

New Business Promoter

Education

People with core technology and knowledge, as
well as business experience to formulate plans

People Who Propose Themes

People Who Have Ideas for New Businesses
Searching for themes, finding them andembracing the challenge in the venture world

Base Personnel

People Who Have an Affinity for New Businesses
Strong inquisitiveness and daring Returningbenefit to own department in the future

Holding the MEIAN Challenge Idea Contest
We held the first MEIAN Challenge idea contest with theaim of generating new business themes by developing
ideas of individuals at an organizational level, starting fromcreating an innovative atmosphere within the Company
and dealing with societal issues.
The Meiden Group’s employees are provided with
an opportunity to freely come up with ideas together with
their colleagues about their ideal future, to propose ideas
to change the Company’s tomorrow, and to shape tothese ideas in the form of businesses. The name MEIAN
Challenge includes the meanings of three Japanese words
pronounced “meian” (Meidensha ideas, tentative ideas,
good ideas). We hope that this will provide an opportunity
for teams from the Meiden Group to produce good ideasthat will change the future of the world through trial anderror (tentative ideas).
The first contest collected business ideas on thethemes of carbon neutrality and well-being. At the final
session, more than 300 employees, including online
participants, listened to the presentations of seven selected
teams. Exceptional ideas will be commended and added
as new business themes to be promoted.
●

MEIAN Challenge idea contest

MEIDENSHA REPORT 202240

Special contents- Round table talkTalking about the Meiden Group’s future withyoung employees

ASEAN region, focusing on Singapore. When I was achild, I lived in the Philippines for a while, where there
were frequent blackouts and voltage was unstable,
which caused lightbulbs to break. This was the impetus
for becoming interested in the mystery of electricity,and majored in electricity and electronics at university. I
wanted to be involved with infrastructure after entering theworkforce, so I aspired to work at Meidensha.

What values do you bring to your work?

Takeshi Miida
President & Executive Officer
Representative Director

Shohei Arakawa(Joined the Company in 2014)

Numazu Procurement Section 2
Direct Procurement Division
Procurement Group

Risa Takahashi(Joined the Company in 2017)

Design Section 1
Switchgear Design Department
Power Equipment
Factory Complex

Jun Hori
Journalist

The project to consider the long-term vision titled MEIDEN MIRAI VISION 2040 (hereinafter “MMV2040”), which
gives consideration to the future of the Meiden Group in 2040, commenced in June 2022.
On this occasion, journalist, Jun Hori, was invited to discuss MMV2040 with two young employees who are
involved with it. Jun Hori was the journalist who held a discussion with President Miida on a TV program that airedin autumn 2021. Opinions were exchanged freely with regard to the form the Meiden Group should take for a more
affluent future, including outside perspectives.

Hori Today, I am deeply interested in hearing the thoughtsof young employees, who are on the front line of themodern age, and are valuable personnel for the Meiden
Group, which provides value in the form of sustainability
and well-being. Could the two of you please introduce
yourselves?
Arakawa I joined Meidensha in 2014, and after experiencein overseas sales, I transferred to the Procurement Group.
I am currently mainly responsible for procurement activities
relating to product manufacturing, developing strategies for

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MEIDENSHA REPORT 2022

such, and enhancing functionality. My original motivation
for joining Meidensha was based on realizing how
fantastic Japanese manufacturing is and the importance ofinfrastructure while I was on exchange in the United States.
Electricity and water are essential for people’s lifestyles. I
hope to spread Japanese manufacturing in order to provide
great infrastructure to the world.
Takahashi I joined Meidensha in 2017. I am mainly
responsible for structural design of switchgear for theoverseas market, and we are releasing products in the

Hori I like the words “change” and “reform,” and I am thetype of person who tends to favor new things over existing
things. Can you tell me what values and thoughts you havein mind when you work?
Arakawa Awareness of protecting the foundation that
supports infrastructure is definitely necessary. However,merely sticking to conventional methods does not allow for
growth, so I also hope to find “added value” of change,
reform, and uniqueness, for the Company and for myself.
Takahashi I hope to incorporate novelty, while valuingwhat has been built up to now. I would like to develop
technology into a range of sectors by having a can-do
attitude saying “Yes, we can handle that” to our customers.
Miida Medium-term management plans devised bycorporations are set a period of about three years, andtime flies. MMV2040 aims to discuss ideas and exchange
views between young people and managers in order todetermine our focus for a longer span. I also feel that it isrequired of Meidensha, which is already good at sincerely
responding to the requirements of customers, to go one
step further, and develop personnel who are able to present
unique added value by themselves.
Hori I see. So, what does “added value” mean in thiscontext?
Arakawa Over the course of history, the form of social
infrastructure has advanced significantly. In recent years,“aging facilities” has been an issue, so I think an added
value would be making proposals for a better, moreadvanced society with taking a step forward, rather thanproceeding as nothing had changed.
Miida In order to achieve this, I think we must rethink what
the Meiden Group ethos is. Through MMV2040, I hope forthe answer to this to become clear and for us to embrace
the challenge of being excited about the future.

How will values and happiness change
by 2040?
Hori By the way, how do you think our lifestyles, values,and happiness will change by 2040?

Arakawa The world has become very convenient, butduring the COVID-19 pandemic, I was reminded of theimportance of interpersonal connection. Whether thatconnection is in the real world or through some othermeans, if it is severed, it detracts from well-being andhappiness.
Hori While I am reporting in conflict zones, I have also been
keenly realized that people’s happiness can sometimes
come into conflict. These days, we often hear words like“diversity” and “inclusion,” but I often wonder whether wereally understand their value and whether we will be able toachieve them.
Takahashi I think that working with people from othercountries and the fact that female engineers like me are
becoming more common are aspects of diversity. But I
feel like assembling diverse people for the sake of diversity
is something different. I think it would be great if diversity
was created by assembling various likeminded people who
agree with the Meiden Group’s goals.
Arakawa This is another reason why we should spread
Meidensha’s reputation. The more we let people know
about our activities, the more we can collect people,
goods, money, and information. If we increase the numberof Meiden fans, it will naturally produce diversity.
Hori It seems like understanding diversifying forms ofhappiness is the secret to understanding the Meiden Groupethos. I also feel that infrastructure such as electricity andwater supply, for which everyone is grateful, has the power
to bridge divides. What sort of world do you think we would
be able to achieve if we spread the Meiden Group ethos
even further?
Takahashi Meidensha’s technology not only includes
products and services that are widely used in theinfrastructure sector, which supports people’s lifestyles.
We also have a share of peripheral and niche sectors, so I
visualize developing more and more of these niche sectors
in order to support the world.

MEIDENSHA REPORT 2022

42

Special contents- Round table talkTalking about the Meiden Group’s future with young
employees

Miida Going forward, we expect the concentration of
population in urban areas to continue for reasons such as
the declining birth rate and aging population, and fewer
employment opportunities in regional areas. Until now,
we have transmitted electricity to far-flung locations, but if
compact smart cities are realized, we may see a time whenelectricity supply can be completed within limited areas.
Takahashi The topic of smart cities also arose in
MMV2040 team discussions. The Meiden Group is involved
with all processes relating to “generation, transmission &distribution, and efficient usage of electricity.” There aremany things that Meidensha can contribute to develop
regional smart cities in addition to major cities. I believethat we can also use Meidensha’s technology in completely
different sectors, such as agriculture and forestry.
Arakawa As there are some things that we can do andsome things that we can’t do on our own to contribute tocreating smart cities, so I am hoping we will cope with thatthrough co-creation and collaboration with others. I expectthat involvement with professionals in various sectors willproduce positive results.

Initiatives to achieve ideal state of being
Hori That’s interesting. Is there anything that you would liketo do now or actions that you are currently implementing toachieve your vision?
Arakawa Well, that is what MMV2040 is. For example,
with regard to transportation, my team is currently engaged
in serious discussions about the feasibility of flight mobility
and a Manga gadget “Dokodemo door(Anywhere Door)”
which is the functional equivalent of teleportation devices.
This is an opportunity for participants to talk aboutperspectives that we do not usually consider, and dreams
and visions that go beyond the scope of their usual work.
Takahashi This enables participants to talk to people invarious divisions and roles, in addition to people who arenormally encountered during usual work, so it is a great

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MEIDENSHA REPORT 2022

opportunity for learning and leads to new discoveries.
Hori That’s great! Is there anything that you consider to beparticularly important for the creation of such an exciting
future?
Takahashi I place particular emphasis on quality. I am anengineer, who works on power transmission & distribution
products, so I have a strong desire to contribute tostable electricity provision. I want to engender trust andassurance in customers with the knowledge that they canleave everything up to Meidensha.
Miida Naturally, the trust of our direct customers isimportant to us, but we must also think about livesof people beyond them. Meidensha’s employees areconstantly aware of supporting the lives of these people.
Hori That’s very true. The philosophy of the Meiden Groupis summed up by the words “lives of people beyond ourcustomers.” Up to this point, you have told us about yourown thoughts in your own words. I would now like you totell us about the vision for the next era.
Arakawa When I talk to people inside and outside thecompany, I feel that they think Meidensha as a conservative
company. However, looking at history, Meidensha wasa pioneer when it came to manufacturing motors andindustrial equipment, which was its original business. In thepast, Meidensha manufactured things like electric fans andrice cookers, but these days we are developing services
using VR and the Metaverse in advance of the times, so
in some senses, we are deceptively innovative. I thinkthat if we further extend the can-do attitude at the core of
Meidensha since it was first founded, while conserving thethings worth conserving, we will create a more attractive
company.
Takahashi I, as an engineer, will look for opportunities toapply my skills and where I will have chances. There aremany types of infrastructure that Meidensha deals with. I
would like to start by learning about a range of different
things inside and outside the Company, even if it is only ata surface level. I strongly feel that this would have an effecton my products and work.
Miida The field in which Ms. Takahashi is involved is only
a fraction of the technology handled by the Meiden Group.
One way to enhance technological proficiency is to expand
these on all directions and broaden your perspective.
Another way is to become professionals by honing yourcurrent technological skills and improving your own areaof specialization. Which option will you choose, Ms.
Takahashi?
Takahashi I want to broaden my horizons. I want to comeinto contact with a range of technologies, find what best

suits me, and further investigate that area. To that end, I
would like to have connections and dialogue with otherdivisions, such as sales, in addition to other engineers.
Arakawa The procurement group have links with eachfactory, so it allows for such lateral connections. I believethat we have a mission to use our position to improve
product competitiveness by connecting professionals,
including those inside the company, as well as our
suppliers/business partners.
Hori That’s great! Meidensha has core technology, and it’sable to use that to respond to a range of needs. As part ofthis, what synergies are displayed by various professionals
working together?
Miida Meidensha has professionals all over the place.
As these two have said, I think it is extremely important tocome into contact and engage in dialog with them from a
range of sectors.

Impressions gained from today’s talkHori Could each of you say a few words about the
impressions that you gained from today’s talk? Mr.
Arakawa, why don’t you go first?
Arakawa It is difficult to put my thoughts into words, butthey actually came out of my mouth and helped me to beaware of the way I thought. At present, there are 18 midlevel and young people participating in MMV2040. Today’stalk was a cue to feel my strong desire to spread MMV2040
beyond that group of 18, to help make Meidensha an evenbetter company along with other likeminded people. Thankyou very much.
Hori Ms. Takahashi, how about you?
Takahashi This opportunity helped me to maintain strong
motivation and gave me a feeling that I could try evenharder at my regular job, as a member of an infrastructurecompany. Taking the opportunity provided by MMV2040,
I would like to communicate with various different people
and absorb a range of knowledge.

A message from President Miida
Hori Finally, President Miida, would you like to say a few
words?
Miida I really think that these two young people are
becoming independent and autonomous. I can see thatthey don’t just design products and procure materials as
instructed, but rather, they tailor their own jobs with thehope of improving society and the Company. It’s reallyreassuring.
Hori It really is fantastic.
Miida In July of this year, Meidensha held the “MEIAN
Challenge” idea contest. Seven themes were announced
and four passed screening. I was intrigued by the three thatwere left out. It turns out that while they were good ideas,
their messages were simply not strong enough to convince
the audience.
Hori I see. Being capable to well communicate and talk isa key, indeed.
Miida MMV2040, in which these two are currently
participating, is an opportunity for young employees andmanagement to discuss and explore what kind of society
they want to build, what the Meiden Group should engage
in, and what they would like to achieve as employees of
the Company. In order for Meidensha to remain a company
that is needed, relied on, and loved, by many people, it isimportant to communicate ideas that we think are good,and strengthen our bonds with society.
Takahashi I strongly felt that necessity at today’s talk.
Miida That’s right. I also felt that it was important forengineers to develop lateral connections. It is also the job ofmanagers to lay tracks for the next generation to participate
going forward. By continuously honing technology, we willcater to the needs of society. That is my hope, and I feelthat it is the purpose of the Meiden Group. Let’s build thefuture together.

MEIDENSHA REPORT 2022

44

Our Approach

Corporate Governance
Basic Approach
Under our corporate mission of “illuminating a more affluent
tomorrow” and our corporate philosophy of providing thevalue “for customer peace of mind and satisfaction”, ourgroup of companies takes the basic stance that we maintain
fair and steady business activities with respect for people
and the global environment, operate businesses focusing
on profit while constantly pursuing new technology andhigh quality, and endeavor to contribute to prosperity ofsociety.
In order to implement this basic stance, we formulated
the “Basic Policy regarding Establishment of a System toEnsure the Appropriateness of Business Activities” at theregular Board of Directors’ Meeting held in May 2006. In
addition, we revised said basic policy at the regular Boardof Directors’ Meeting held in July 2022, as a result of areview of the officer system to further clarify the division ofroles between executive functions (executive officers) andso-called supervisory functions (directors and the Board of
Directors).
The Company will work to further improve the fairness,
efficiency, and transparency of management by promoting
initiatives to enhance corporate governance in accordancewith the Corporate Governance Code.

Outline of Corporate Governance Structure (As of July 2022)
Form of Organization

Company having an Audit & Supervisory Committee

Directors

Number of directors (outside directors): 7 (3)Directors (Audit & Supervisory
Committee Members)

Number of directors (outside directors): 4 (3)Number of Independent Officers(b) In order to further enhance discussions on
management strategies, etc. by transferring theBoard of Directors to a monitoring type, since a
portion of the Board of Directors’ authority to makedecision on business execution has been transferredto the Director & President and Executive Officer(Executive Officers’ Meeting).

Transition to a Stronger Corporate Governance System
Commencement of stronger corporate
governance to increase the effectivenessof the Board of Directors

6 (3 outside directors and 3 outside directors(Audit & Supervisory Committee members))

Corporate Governance Structure andInitiatives
We are a company with an Audit & Supervisory Committee,
and we aim to further strengthen corporate governance inthe following areas.
(a) In order to further enhance the supervisory functionsof the Board of Directors through use of legal authority,
such as directors that are Audit & Supervisory
Committee Members holding voting rights at theBoard of Directors’ Meeting and having the right topresent a position statement relating to nominationand compensation of directors at General Meeting of
Shareholders.

From FY2003

From FY2015

Enhancement ofDecision-making andSupervisory Functionsof the Board of
Directors

2003◦ Introduction of executive officer system
2012◦R evision of the rules of internal approval

Separation ofSupervision andExecution ofManagement
2006◦R evision of the Basic Policy regarding
Establishment of a System to Ensure theAppropriateness of Business Activities(the Basic Policy on Internal Control
Systems)
2012◦C ommencement of reporting to the Boardof Director’s Meeting on internal control
adjustment status

Message from the Chairman of the Board of Directors

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MEIDENSHA REPORT 2022

2013
◦E nhancement of information sharing withoutside officers
2014◦C ommencement of meetings to exchange
opinions with outside officers

Revitalizing andenhancing debate by
the Board of Directors

From FY2020

2015

◦R
 evision of Board of Directors agenda standards

2018◦S eparation of the roles of chairman of the Board of
Directors and chairman of the Executive Officers’
Meeting
2019◦E limination of quotas for number of directors

2015

◦R
 evision of the Basic Policy on Internal Control Systems

2016◦C ommencement of verification of effectiveness of theBoard of Directors◦C ommencement of evaluation of cross-shareholdings
2017◦E stablishment of the voluntary Compensation Committee
2018◦E stablishment of the voluntary Nomination &Compensation Committee
2019◦C hange of directors’ term of office to 1 year◦A
 bolition of Senior Advisor system
2015◦C ommencement of training for newly appointed outside

directors
2018◦C ommencement of advance explanation of Board of
Directors agenda items to outside officers

2020◦R evision of the Board of Director’s Meeting
agenda, standards and rules of internal
approval◦T ransition to a company with an Audit &Supervisory Committee◦P roportion of outside directors at least 1/3◦E lection of female outside director (1person)2022◦R eview of the officer system (Clarification of
execution and supervision)◦ Increase of outside directors’ ratio to majority
2020◦ Revision of basic internal control policy◦E stablishment of the Group for Promotion ofInternal Control
2022◦ Increase of outside directors ratio on thevoluntary Nomination & Compensation
Committee to majority◦E stablishment of the Corporate GovernanceManagement Group◦R
 evision of basic internal control policy

2021◦E stablishment of Board of Directors’
discussion

Corporate Governance Structure

General Meeting of Shareholders
Appointment and Dismissal(Voluntary Committee)
Nomination &Compensation
Committee

Advice/Recommendation

The Corporate Governance Code established in 2015 has played a major role as a guide for Japanese companies to
conduct governance reform. Meidensha established a voluntary Nomination & Compensation Committee in 2019, andwe decided to transition from a company with board of company auditors to a company with an audit and supervisorycommittee in 2020. In the 2 years since then, we have tackled issues such as (1) improving the effectiveness of the Boardof Directors, (2) valuing diversity, and (3) consideration for the global environment, under this new governance structure. At
present, we are working to improve operation of the Board of Directors in order to further increase its effectiveness, whileremaining aware of PDCA.
At the General Meeting of Shareholders held in June 2022, Meidensha made resolutions to partially amend the
Articles of Incorporation with regard to review of the officer system, and the resulting new system of directors. Throughthis, we will further clarify executive and supervisory roles, and deal with issues one at a time to achieve“Medium-termManagement Plan 2024” (final fiscal year is 2024), by further enhancing both roles. Through these activities, we also hopeto evolve to become a “sustainability partner that works to build a new society through integrity to the earth, society, andpeople, and through the power of co-creation” which is our ideal state of being.
It has been 125 years since Meidensha was founded. In that time, we have engaged
in a range of businesses, from our start as a business to repair motors manufactured
overseas, to working to bring that manufacture to Japan, and producing heavy electrical
products and systems, the water treatment sector, control equipment, power systems,
and testing equipment in fields of automobiles, as well as producing drive products for theelectric vehicles, etc. By enhancing the above activities (1) through (3) while remembering
our ambitious spirit, we will promote management that caters to the expectations ofinvestors, and work to further improve our corporate value.
In addition, human resources are the source of Meidensha’s sustainable growth. We
will promote discussion at the Board of Directors from a supervisory perspective, in order
to become a company that is accepting of diverse personnel, and create an environment
Yuji Hamasaki
and system in which every individual can participate.
Director & Chairman & Senior Officer

Deeper corporate governancesystem based on suddenly
changing economic conditions

Promotion of corporate governance reforms
based on the Corporate Governance CodePurpose/results

Enhancementof transparency
and soundness ofmanagement(c) We aim to further promote separation of supervisoryand executive functions by making changes toincrease legitimacy in June 2022, and combining itwith the transfer of authority mentioned in (b) throughthe introduction of an executive officer system in June
2003, and a system for election of executive officers
who are responsible for a flexible and agile businessexecution system by the Board of Directors, basedon the Articles of Incorporation.

Board of Directors

Transfer of Authority

Appointment and Dismissal

Audit and Supervisory
Committee

Chairman: Director &Chairman

Directors

Appointment and Dismissal

Support and Advisory Division for
Audit & Supervisory Committee

Directors Who Are Audit &Supervisory Committee Members
Audit /
OverseeMonitor / Oversee

Audit / Dismiss

Request /Instruct

Cooperation

Executive Structure
Instruct

Executive
Officers’Meeting
Direction andOrdersPresident and Executive Officer (Chairman)
Executive Officers with Titles
Monitor /Oversee

ReportSupport / Monitor

Internal Auditing
Division

Cooperation

Accounting
AuditorInternal Control
Promotion Division

ReportExecutive Divisions
Group Subsidiaries

MonitorCompliance
Committee

Internal Auditing
Accounting Audit

MEIDENSHA REPORT 2022

46

Our Approach

Corporate Governance
1 The Company’s Board of Directors
In principle, the Board of Director’s Meeting convenes ona regular monthly basis and holds ad-hoc meetings asnecessary, to discuss major executive matters, businessissues, and management issues related to the Company’sbusiness execution. In FY2021, the Board of Director’s
Meeting held 13 meetings, and the attendance rate was
100% for all directors.
① Composition of Board of Directors
The Company’s Board of Directors consists of 11
Directors, including 4 directors who are Audit & Supervisory
Committee members, and 6 Outside Directors, including
3 Audit & Supervisory Committee members. We haveintroduced a system to ensure that independent outside
directors account for the majority of the Board of Directors
since they meet the standards of the Company’s Criteria
for Determining the Independence of Outside Directors,
ensure the effectiveness of the supervisory functions of
the Board of Directors, and fully incorporate objective andindependent opinions into the Company’s management.
Meidensha’s outside directors satisfy the requirements
of independent directors as stipulated in the rules of theTokyo Stock Exchange.
② Policy for Appointment of Candidates for Directorand Appointment/Dismissal Process
The basic policy for the appointment of directors of theCompany is to ensure the diversity of the Board of
Directors as a whole and to balance the expertise requiredof the Company’s Board of Directors with the awareness,experience, and abilities of individual Directors.
The basic policy for the appointment of directors who
are Audit & Supervisory Committee members is to ensure
overall diversity of directors who are Audit & Supervisory
Committee members and a balanced composition,according to knowledge and experience, etc., relating toaccounting, finance, and law, etc.
The number of the Company’s directors is stipulated
as a number that is sufficient to fully deliberate on
management issues, with an upper limit of 15 members.
Based on the above, we create a directors’ skill matrix,
nominate candidates for director that will contribute to theenhancement of the Board of Directors decision-making
function and oversight function, by resolution of the Boardof Director’s Meeting, with advice from the Nomination &Compensation Committee* (voluntary committee), which ischaired by an independent outside director. The candidates
are then presented at the General Meeting of Shareholders.
Furthermore, with regard to the dismissal of directors, if
it is discovered that a director has breached the law or the
Articles of Incorporation, or committed acts that flagrantly
breach the director’s nomination policy, the Board of Directors
will take the necessary steps to dismiss said director with theadvice of the Nomination & Compensation Committee.

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MEIDENSHA REPORT 2022

2 Effectiveness Evaluation of theBoard of Directors* Meidensha established a voluntary Compensation Committee in December 2017.
In December 2018, the Committee took on the functions of a voluntary nominationcommittee to become the Nomination & Compensation Committee. The Nomination& Compensation Committee is chaired by an independent outside director and iscomprised of 3 outside directors, the Director & Chairman & Senior Officer, and the
Director & President & Executive Officer. Independent outside directors account for the
majority of the committee.
Refer to p. 51 “Skill Matrix”③ Executive Officer System and Executive Structure
Meidensha introduced an executive officer system in June
2003 in order to streamline the Board of Directors, aswell as to accelerate management decision-making andto enhance supervisory functions. At the same time, wesought to reinforce the functions of the Board of Directors
by promoting the separation of the decision-making
authority and supervisory function from the businessperformance function held by the Board of Directors.
Based on the Articles of Incorporation, executive
officers selected by the Board of Director’s Meeting assume
responsibility for the execution of specified tasks within thescope of authority transferred by the Executive Officers’
Meeting and the President and Executive Officer, and nimbly
perform executive functions under the supervision of theBoard of Directors, in accordance with the Meiden Group’s
management policies determined by the Board of Directors.
The Executive Officers’ Meeting, which comprises
Executive Officers with Titles, is created for executive
decision-making, and decides matters based on therules of internal approval, as well as matters for which
consultation from a full-company perspective is required.
Furthermore, apart from the meeting body to makedecisions, we established advisory and internal bodies
such as review and strategy meetings, and with regard
to important management matters, we created a system
wherein thorough discussion and deliberation are
conducted prior to decision-making, and follow-up strategy
and planning and improvement initiatives are conductedfollowing decision-making.
The outline and main points of the proceedings at the
Executive Officers’ Meeting and other internal meetings arereported as the status of business execution at the Regular
Board of Directors’ Meetings to ensure and improve theeffectiveness and supervisory functions of the Board of
Directors.
As to execute business, executive directors andexecutive officers with the authority are taking attempt
initiatives agilely by making resolutions and settlements. In
this way, we are working to conduct executive functions
autonomously and nimbly.
With the transfer of a portion of authority for businessexecution from the Board of Directors to the executive
directors and executive officers, executive officers must
submit a business execution status report to the Board of
Directors at least once every 3 months in order to ensure
the effectiveness of functional supervision by the Board of
Directors.

Meidensha has a mechanism in place to conduct ananalysis and evaluation of the effectiveness of the Board of
Directors in order to strengthen the supervisory function of
the Board of Directors.
With regard to the activities of the Board of Directors in
FY2021, all members of the Board of Directors, including
outside directors, conducted self-evaluations of theeffectiveness of the Board of Directors, and the following
discussions took place at the meeting of the Board of
Directors in May 2022, in order to revitalize deliberations by
the Board of Directors.
i Items EvaluatedComposition (scale and diversity, etc.) andoperation (means of resolution, reporting, and discussion,etc.) of the Board of Directors, self-evaluations concerning
effectiveness of the Board of Directors, and other issues
and opinions, etc., relating to the future effectiveness of theBoard of Directors
ii Outline of Analysis and Evaluation Results
The results of the evaluation of each director were collected,
and after deliberation by the Board of Directors, it wasdetermined that the quality of operation and deliberation
is sufficient, sufficient opinions and advice have been
received from outside directors, and the effectiveness of
the Board of Directors is currently secure.
In addition, in the course of evaluation, we promoted
the transition of the Board of Directors to a monitoring typeand reaffirmed the policy to further enhance the supervisory
function of the Board of Directors through the delegationof major executive functions and establishment of internal
decision-making and supervision rules.
Going forward, we will promote initiatives to further
improve the effectiveness of the Board of Directors.

3 Initiatives to Utilize Outside
Directors
Meidensha seeks active participation in management byoutside directors, in order to enhance the supervisory
function of the Board of Directors. As such, we areconducting the following initiatives to ensure free andactive debates.
i Advance Explanation of Agenda Items of the Boardof Directors
We hold explanatory meetings for outside directors,presented by Executive Officers with Titles, in advance,
so that outside directors are able to confirm the content
of agenda items prior to participating in meetings of theBoard of Director’s Meeting. Our system allows us toaccept questions, etc., relating to the content of agendas
in advance and prepare an explanation to be given at
the Board of Director’s Meeting, and this revitalizes andenriches deliberations.

ii Matters for Discussion by the Board of Directors
In addition to agenda items and reporting matters of theBoard of Director’s Meeting, we take up matters concerning
our basic management plans, such as the Mediumterm Management Plan and major themes required of acompany having an Audit & Supervisory Committee, anddiscuss tracing, etc., as matters for consultation.
We will leverage the knowledge of outside directors
to facilitate active exchange of opinions concerning theCompany’s management issues and strategies, as well as
corporate governance, and use this as an opportunity tobuild consensus at the planning stage, prior to resolutions
by the Board of Director’s Meeting.
iii Timely and Appropriate Sharing of Information
Beyond the Board of Directors’ Agenda
Besides the agenda for the meeting, the Company provides
briefings on current topics relating to the Company at theBoard of Director’s Meeting, with the aim of timely andappropriate sharing of information with outside directors,
so that they can share the status of the Company in atimely fashion.
iv Training for New Directors
We create opportunities to explain the Company’s businessand structures, primarily to aid the understanding of newly
appointed outside directors.
The responsible officers or managers in charge of thebusiness group, etc., explain their business, corporatewide themes, and the Company’s governance system tothe outside directors, answer their questions, and exchange
opinions with them, in addition to actually monitoring eachfactory.

4 Participation of Outside Directors in
Board of Directors’ MeetingsⅰParticipation in the agenda
Our outside directors have diverse management experienceand areas of specialization, understand the content of the
proposals put before the Board of Director’s Meeting froma variety of perspectives when said matters are explained inadvance, and attend Board of Directors’ Meetings having
checked any unclear points in advance.
At Board of Directors’ Meetings, multifaceted discussion
occurs, based on the broad perspective of managers, theknowledge of technicians, and the high-level specialization ofexperts, etc. The outside directors participate in deliberations
by actively making statements, etc., in particular concerning
policies and measures to deal with risks, and cautions whenmonitoring, etc.
The outside directors also contribute to strengtheningof the supervisory function of the Board of Directors, suchas by participating in matters concerning medium-term
management plans from the consideration stage, making
resolutions as part of the Board of Directors having shared
the Company’s goal and issues, and making statements
concerning said plans at Board of Directors’ Meetings at
any time.
MEIDENSHA REPORT 2022

48

Our Approach

Corporate Governanceⅱ Participation in management
In the course of evaluating deliberations at the Board of
Director’s Meeting and effectiveness evaluation of the Boardof Directors, the outside directors’ opinions are heard withregard to matters that require priority monitoring by the
Board of Directors and matters that require strengtheningof systems, etc., which improves the agenda-setting andoperation of the Board of Director’s Meeting.
As we change our institutional design to that of acompany having an Audit & Supervisory Committee, andtransition to a monitoring-type Board of Directors, the outside
directors determine matters that should be discussed andresolved by the Board of Director’s Meeting, as well as
authority that should be transferred to the Executive Officers’
Meeting and executive officers, and promote separation ofsupervisory and executive functions. The outside directors
express opinions concerning matters that require priority
monitoring in the course of business execution based on
their diverse experience and knowledge.
Based on these opinions, the Board of Directors createa yearly schedule for the Board of Director’s Meeting, createa cycle to systematically monitor the entire Company, andcontribute to the drafting of the Board of Directors Rules andimprovement of operations.

5 Auditing System
The Company transitioned from the prior institutional
structure of a company having an Audit & Supervisory Board
to a company having an Audit & Supervisory Committee at
the General Meeting of Shareholders held on June 26, 2020.
The Audit and Supervisory Committee consists of
4 directors, including 3 outside directors, who are Audit& Supervisory Committee members, and there is also a
Support and Advisory Division for Audit and Supervisory
Committee has been established as a staff organization
to support the Audit and Supervisory Committee. The
committee communicates with the directors, the Internal
Auditing Division, and other related divisions, while adheringto the auditing policies, allotted duties, and auditing rules,
etc., for Audit & Supervisory Committee members stipulatedby the Audit & Supervisory Committee. Committee members
attend meetings of the Board of Directors and otherimportant meetings, and audit the execution of directors’
duties through investigations of business and financial
conditions.
Directors who are Audit & Supervisory Committee
members are granted authority, such as voting rights at
a Board of Director’s Meeting and the right to present a
position statement relating to nomination and compensationof directors at a General Meeting of Shareholders We
are therefore promoting the establishment of an auditing
framework and the enhancement of various initiatives tofurther strengthen the supervisory function of the Board of
Directors, which is the aim of altering our institutional design,
through new activities such as monitoring and auditing, etc.
of the transfer of authority to executive directors and the49

MEIDENSHA REPORT 2022

status of the governance that guarantees it, in addition toauditing activities, and by further strengthening cooperation
with the outside directors, etc.

6 Internal Auditing Systemi Organization
We have established the Internal Auditing Division (14members as of March 31, 2022). The Internal Auditing
Division is independent from other executive lines, andconducts internal audits to check the effectivenessand efficiency of business operations, the reliability offinancial reporting, the status of compliance with laws andregulations, and the maintenance of assets, covering theCompany and all of the Meiden Group companies at home
and abroad as an organization under the direct control of
the Director & President and Executive Officer.
With regard to internal control, the Internal Control
Promotion Division is the specialized division that
establishes risk management systems that integrate theentire Meiden Group, promotes enhancement of internal
control systems, and ensures complete internal control
functions through joint monitoring of internal control
systems by the Audit & Supervisory Committee and theInternal Auditing Division.
ii Method of audits
In FY2021, the internal audits were mainly conducted by
two methods.
The Company is transitioning from our previous rotating
audits to a risk-based approach. We conducted risk-based
audits at 17 business units, which comprehensively coveredrisks based on major risks facing all companies confirmedby the Risk Management Committee, and prioritized highrisk areas. In FY2022, in addition to major risks facing
all companies in the Meiden Group, the Internal Auditing
Division will evaluate risks from multiple perspectives,
select and audit auditing targets in consideration of this.
At the subsidiaries, we conducted new standardized
audits using audit standardization tools at 1 Japanesesubsidiary and 14 overseas subsidiaries to improve thecomprehensiveness of risks in audits.

7 Strengthening Group Governance
The Meiden Group is working to continuously strengthengroup governance by developing basic policies based on
the “Basic Policy regarding Establishment of a System
to Ensure the Appropriateness of Business Activities” ateach Meiden Group company, establishing a regulatory
framework, and implementing the PDCA cycle.
1. Establishing a Framework
1) Our Board of Directors has established the Corporate
Policy Planning Group, the Integrated Sales Group, andthe Internal Control Promotion Division as group-wide
management organizations, and created a system foreach Meiden Group company to report to the Company.

2) There is a system to dispatch general officers or nonstanding officers from the Company to Meiden Group
companies to oversee the operations of said Meiden
Group companies.
3) The Company dispatches non-standing auditors tomajor overseas and domestic Meiden Group companies
to strengthen audits.
4) The Company’s Internal Auditing Division conducts
audits to ensure appropriate business practices at each
Meiden Group company.
2. Main Initiatives in FY2021
The Group Company Internal Control Committee meets
twice yearly. It shared the top risks facing the Meiden Groupand the progress of each company’s risk management,
and started conducting risk management education andinstruction for each business unit of overseas subsidiaries.
At the settlement and business plan reporting sessions
in Japan and the overseas strategy meetings overseas,
we worked to continue to establish the discussion
and reporting system for subsidiaries, which requires
reporting of business issues, etc., and based on this,provides an opportunity to share the main risks faced byeach subsidiary, and consider and thoroughly implement
measures. In addition, at the Internal Auditing Department
we incorporated standardized audits that comprehensively
evaluate standard tasks, and conducted internal audits at
one Japanese subsidiary and 14 overseas subsidiaries.

Officers’ Compensation
Directors compensation policyi Level and System of Compensation
The level of compensation of the Company’s directors isdetermined based on external objective compensation
market data, economic conditions, industry trends, andCompany’s business circumstances, etc. The content of
the officers’ compensation system is determined by theinternal officers’ compensation regulations having received
consultation and confirmation by the aforementioned
Nomination and Compensation Committee, giving
consideration to this level.
ii Composition of Compensation(a) Directors (Excluding Audit & Supervisory Committee
Members and Outside Directors)
Compensation of directors (excluding Audit & Supervisory
Committee members and outside directors) is basedon annual salary system with performance-linked
compensation, and comprises basic compensationand incentive compensation according to each role. Of
these types of compensation, incentive compensation
comprises compensation that is linked to businessperformance as a short-term incentive and stockcompensation as a medium to long-term incentive.

(b) Directors and Outside Directors Who Are Audit &Supervisory Committee Members
Directors and outside directors who are Audit &Supervisory Committee members only receive basic
compensation on annual salary system basis.
iii Incentive Compensation System
Performance-linked compensation, which is a short-term
incentive, varies from 0 to 140 depending on the degreeof achievement of targets, with perfect achievement oftargets counting as 100. We use operating income, whichis also used for our financial targets in the Medium-termManagement Plan, as a performance evaluation indicator,and give consideration to revisions according to operating
conditions and changes to the roles of each officer, etc.
Calculation formula
Coefficient Accounting to Achievement ofTarget Operating Income (0.0 to 1.4)

Basic Remuneration for
Each Position

Compensation for Stock Acquisition, which is amedium to long-term incentive, grants shares to the
Officers’ Shareholders Association for the purpose of further
promoting sharing of profit and loss with shareholders.
iv Compensation Determination Procedures
The Nomination & Compensation Committee confirms andconsiders the content of the compensation system and theamount of compensation from an objective perspective
prior to determination by the Board of Director’s Meeting.
FY2021 results

Classification

Total Amount ofCompensation,etc.
(millions of yen)

Total Amount of Each Typeof Compensation, etc.
(millions of yen)
Basiccompensation

Incentivecompensation

Number ofPeopleDirectors(Excluding Audit &Supervisory Committee
Members and Outside
Directors)

285

195

89

9

Outside directors(excluding Audit &Supervisory Committee
members)

19

19

－

2

Directors Who Are
Audit & Supervisory
Committee Members(excluding Outside
Directors)

53

53

－

3

Outside directors
who are Audit &Supervisory Committee
members

25

25

－

3

Total

383

293

89

17

Note 1. The above number of people entitled to compensation includes 2 directors who
retired at the conclusion of the 157th General Meeting of Shareholders held on
June 24, 2021 (excluding Audit & Supervisory Committee members), and 1
director who is an Audit & Supervisory Committee member.

Target Proportion of Each Type of Compensation (if 100% of targets were achieved)
Basic Compensation

70%:

Performance-Linked Compensation

20%:

Compensation for Stock Acquisition

10%

MEIDENSHA REPORT 2022

50

Our Approach

Board of Directors & Executive Officers as of July, 2022
Composition of Meidensha’s Board of Directors (Skill Matrix)
When appointing the Company’s Board of Directors, it is our basic policy to appoint appropriate personnel, who will ensure
diversity and balance of the Board of Directors as a whole and contribute to increasing the Company’s corporate value
based on individual directors’ abilities, knowledge, and experience, etc. Based on this policy we make appointments thatwill contribute to the decision-making and oversight functions of the Board of Directors, and the composition of the Boardof Directors reflects this.
Sectors in which specialization can be particularly demonstrated
Name/Position
Yuji Hamasaki

Director & Chairman & Senior Officer
Director, Chairman
Member of Nomination & Compensation Committee

Takeshi Miida

Representative Director & President &Executive Officer
Member of Nomination & Compensation Committee

Norio Takekawa

Representative Director &Executive Vice President & Executive Officer

Management
and businessstrategy/M&A

Sales/
Marketing

●

●

R&D/
Technology

Manufacturing/
Construction/
Maintenance●●Yoshiaki Shin

Director (Outside Director)
Member of Nomination & Compensation Committee

Hiroji Adachi

Director (Outside Director)

Michihiko Kato

Director & Audit & Supervisory Committee Member(Standing Audit & Supervisory Committee Member)
Chairman of the Audit & Supervisory Committee

Keiko Hayashi

Director & Audit & Supervisory Committee Member(Outside Director)
Member of Nomination & Compensation Committee

Takashi Kuroda

Director & Audit & Supervisory Committee Member(Outside Director)

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

Director & Audit & Supervisory Committee Member(Outside Director)

●

●

●

●

●

●

●

Hideki Hiraki

CSR/ESG●●●

Legal affairs/Riskmanagement●

Director & Senior Managing Executive Officer

Director (Outside Director)
Head of the Nomination & Compensation Committee

Accounting/
Finance●

Masayuki Iwao

Hiroyuki Takenaka

Overseas/
International
businesses

●

●

●

●

Senior Managing Executive Officers

Yuji Hamasaki

Masayuki Iwao

Masahiko Suzuki

Noritaka Matsushita

Kazuhiro Yamada

Nobuaki Tamaki

Akio Inoue

Hisahiro Murashima

Nobuya Ono

Norio Mizutani

Hiroshi Takahata

Takeo Suzuki

Katsumi Shimamura

Katsunori Suzuki

Takehisa Koganezawa
Ko Yamamoto

Takeshi Miida

Managing Executive Officers

Executive Officers

Executive Vice President &Executive Officer

Hiroshi Toke

Akio Ikemori

Munekazu Shiratori

Satoshi Momenya

Katsuyuki Watanabe

Kuniteru Yamaoka

Yasuhiro Yoshino

Norio Takekawa

Hideki Miyazawa

Koji Niikura

Seiji Kato

Masami Ogawa

51

MEIDENSHA REPORT 2022

I have extensive experience at energy companies, where the whole industry is
expected to undergo major transformation. I have been involved with support
for operation at manufacturing sites, energy-conservation and safety measures,development of management plans, and promotion of M&A, both in Japan andoverseas, and recently, I have been involved with the development of digitaltransformation, which is gradually becoming a significant movement throughout
society, and internal reform initiatives such as reducing greenhouse gas emissions
and promoting a circular economy. At Meidensha, increasing competitivenessof existing businesses, promoting digitalization of our business, formulating thelong-term vision, and rearranging our business portfolio are major issues that must
be confronted by management. I will use my knowledge and experience gained tothis point, and seek many opinions from inside and outside the Company, to work
hard to indicate a direction for management.

Takashi Kuroda Director & Audit & Supervisory Committee Member (Outside Director)
For 43 years, I have provided risk management to various clients including
companies, government agencies, and individuals, in the property insurance
industry. Risks change with the times, and new unforeseen risks appear. If you
spell the “risk” in Japanese backwards (in Japanese “RISUKU”), you end up with“medicine”(in Japanese “KUSURI”), and I often say that advance preparation
for risks is necessary as a form of preventative medicine. Until now, it has
been common practice for companies to take “household medicine,” such as
governance, internal control, and compliance, from the perspectives of customers
and sustainability, but it is necessary to envision the future and effort to develop
new medicine. I am fortunate to be involved with new sectors, and I will leverage
my broad viewpoint and experience developed while valuing interpersonalconnections, and perform my duties in a manner that earns the trust of eachstakeholder.

Hideki Hiraki Director & Audit & Supervisory Committee Member (Outside Director)

Chairman & Senior Officer

Tatsuki Mochizuki

Hiroji Adachi Outside Director●

Executive Officers

President & Executive Officer

Message from Newly Appointed Outside Directors

In my 40 years of experience at banks, asset management companies, etc., I
have been globally involved with operations such as management strategy,
financial planning, group risk management, and compliance. I have also been
involved with pension and asset management businesses, corporate governance,and ESG operations in Japan and overseas. The business conditions surrounding
Meidensha are undergoing historically major changes and upheavals; however, I
feel honored to be one of the people to promote reform and growth by maximizing
the Company’s balanced business portfolio and strong trading and technologicalfoundation. I will perform my duties such as providing oversight and advice withregard to the state of business execution and maximizing auditing functions, andcontribute to sustainable growth, increased corporate value, and fulfillment ofsocial responsibility of the Company, which has over 120 years of history.

MEIDENSHA REPORT 2022

52

Our Approach

Risk Management / Compliance
Basic Approach
The Meiden Group is building a system to understandmajor business risks faced by the whole group, and control
risks for all companies in an integrated manner, throughdiscussion by management (ERM = Enterprise Risk
Management). In addition to regular risk management,
we also have an integrated system for managing andresponding to business continuity risks due to accidents ordisasters, etc., (BCM = Business Continuity Management)
and aim for a system that is able to respond to constantly
changing risks during regular operation and emergencies.
We fully understand domestic and overseas laws,
including laws relating to corporate activities, customs,
and all other social norms and spirit. We comply with andrespect these, and have developed the Meiden Group
Code of Conduct to constantly maintain a high standard ofcorporate ethics and social decency.

Risk Management/Compliance
Structure
In FY2022, we established the Corporate GovernanceManagement Group, and aggregated the Internal
Control Promotion Division, which conducts integrated
risk management during normal operation and crisis
management during emergencies and the General andLegal Affairs Division, which governs compliance as amajor part of risk management.

Operation of Each Committee
The Risk Management Committee is chaired by the
Director, Senior Managing Executive Officer. Key membersof the Headquarters Staff Business Unit scrutinize theMeiden Group’s major business risks that have been
identified by the Internal Control Promotion Division anddebate response policies each half. Managers further
Chart of Risk Management-related Organizations(Name of organizationand content of work)
Internal Control
Promotion DivisionCorporate
GovernanceManagement
Group・Risk management during
normal operation
・Crisis management
during emergencies

Risk Management Committee
Group Company
Internal Control Committee
BCM Committee

General and Legal
Affairs Division
・Compliance・Corporate governance

53(Relevant committees)

MEIDENSHA REPORT 2022

Compliance Committee

debate business risks debated by the Risk Management
Committee at the Executive Officers’ Meeting and theBoard of Directors, stipulate key business risks facing the
Meiden Group, and determine response policies.
The General and Legal Affairs Division is the executive
office for the Compliance Committee, which is chairedby the officer responsible for compliance, and convenes
regular committee meetings twice each year to determine
compliance action plans. Feedback on activities basedon this action plan is provided to the meetings, and thecontent is also reported to management.

All-Company Integrated Risk Management (ERM) System During Normal Operation
The Meiden Group is building a risk management systemusing the following three-line model.
The Internal Control Promotion Division is a mechanism
to contribute to deliberation and decision-making concerning
major all-company risks by management by collecting risk
information for which Line 1 and Line 2 is responsible,
collating major all-company risks to be discussed by

Management [Examination of major risks facing all companies]

Whistleblower System on Compliance
The Meiden Group has a whistleblower system forcompliance. This is to prevent illegal actions andmisconduct and to solve problems as early as possible.
The internal whistleblower system includes the internalreporting system (Compliance Hotline) dealing with abroad range of compliance issues including breaches oflaws such as the Antimonopoly Act, breaches of generalanti-corruption regulations such as those dealing withbribery, other breaches of internal or external rules, andlabor problems and the Harassment Consultation Hotline,
which is specifically designed to deal with harassment. The
External Hotline is a hotline operated by outside lawyers
for early detection and rectification of unlawful acts, etc.
Furthermore, we have also established a supplier-specificwhistleblower hotline in FY2018.
In FY2021, we proceeded with revision and reform of
regulations and systems, such as making our whistleblower
systems clearer and further strengthening protectionof whistleblowers, in line with the enforcement of theamended Whistleblower Protection Act.

Board of Directors

Audit & Supervisory Committee

Cooperation

Executive Officers’ Meeting

President

Risk control directions[Third line]

Sharing information
on major risksGroup Company Internal Control Committee[Sharing major risks facing all companies]
Composition ofCommittees

Compliance Initiatives
Group Corporate Code of Conduct toward Globalization
The Meiden Group revised the Meiden Group Corporate
Code of Conduct in 2022 in consideration of sustainability
management, and is increasing awareness of employeeswith regard to compliance with laws and other social norms
and contributing to the realization of a sustainable society.
We are educating Meiden Group employees aroundthe world by compiling this code of conduct in addition
to the corporate philosophy system and guidance intoa booklet in three languages (Japanese, English andChinese). Furthermore, we are broadly expanding ourcompliance education activities such as by releasing the
Meiden Group Bribery Prevention Policy and the Guidelines
for the Meiden Group Bribery Prevention Policy in the same
three languages.

management, and presenting such to management after
deliberation by the Risk Management Committee.
The Group Company Internal Control Committee
convenes twice each year to improve Group governance.
It receives reports of the CSA status of each company andshares information concerning major risks faced by theentire Group.

Presentation of information on major risks

Risk Management Committee[Selection of major risks facing all companies]

Composition ofCommittees[First line]

Major risk
information

Business units
Researchlaboratories

Factories

Construction
business units[Conducting audits of risks facing
each business unit][Second line]

Staff business units
Cooperation[Conducting risk management for each business unit]
Business
divisionsInternal Auditing Division

Risk information

Internal Control Promotion Division[Collection of risks facing all companies]
Risk informationSales
locations

Each staff business unit
[Support for business units]

Control risk support

Subsidiaries

Major Risks Facing the Group

The Meiden Group stipulates major business risks to the entire Meiden Group, including in relation to ESG, through regular
discussion among managers according to systems such as those listed above. As a result of the above discussion among
managers, risks that could have a serious impact on the decisions of investors are as follows. (As of March 31, 2022)

Risk assessment
Ranking

Outside experts

Cooperation

Committees relating to risks

Risk

ImpactLikelihood

Speed ofmaterialization

Effectiveness of
response

Comparison
with previous
Likelihood of harm
year’sto brandassessment

1

Environmental regulations and climate change

Large

High

NormalEffectiveHigh

2

Inadequate procurement management

Large

High

Somewhat fast

Somewhat effective

Somewhat high3

Inadequate labor management

Large

MediumNormalSomewhat effective

High

4

Occurrence of industrial accident

Large

MediumExtremely fast

Somewhat effective

Somewhat high5

Reduction of quality

Large

High

Fast

Somewhat effective

Normal6

Insufficient internal information management

Large

MediumExtremely fast

Effective

Somewhat high7

Outbreak of a pandemic

Large

High

Somewhat fast

Effective

Normal8

Insufficient awareness or responsiveness to changes in market conditions

Large

High

NormalEffective

Normal9

Occurrence of natural disasters

Large

MediumExtremely fast

Somewhat effective

Normal10

Insufficient personnel

Large

High

Somewhat slow

Somewhat effective

Normal11

Disguising quality or iniquitous incorrect inspection

Large

Low

Fast

Somewhat effective

High

12

Inadequate cyber measures

Large

MediumExtremely fast

Effective

Normal13

Breach of Antimonopoly Act or bribery

Large

Low

Extremely fast

Effective

High

14

Falsified financial reports

Large

Low

Somewhat fast

Somewhat effective

High

15

Breach of Construction Business Act

Large

Low

Somewhat fast

Somewhat effective

High

16

Changes in the global economy, politics, society

Large

Low

Extremely fast

NormalSomewhat high17

Incomplete control of overseas subsidiaries

Large

Low

Extremely fast

Somewhat effective

Somewhat high18

Reduced ability to cater to customers

Large

Low

Extremely fast

NormalNormal19

Incomplete control of Japanese subsidiaries

Large

Low

Somewhat slow

Somewhat effective

Somewhat high20

Loss of investment

Large

Low

Somewhat fast

NormalNormalNote: Risk assessment is an independent analysis of the various risks faced by the Group rather than a general risk assessment.

MEIDENSHA REPORT 2022

54

Our Approach

Risk Management / Compliance
Crisis Management System During
Emergencies
Under the BCM Committee, which determines the Meiden
Group’s BCP policy and measures, the Meiden Groupestablished the Corporate BCP Promotion Committee,
BCP promotion committees for each business, theDomestic affiliates BCP Sub committee, and the Working
Group to Consider All-Company Measures, and promotes
BCP throughout the Group.
BCM Committee
Chairman: President

Working GroupBCP Office

Corporate BCP Promotion
Committee【Promoting specificmeasures relating to BCP
for corporation functions】(Consideration of joint all-company
measures)

BCP Promotion
Committee for EachBusiness【Promoting SpecificMeasures relating to BCP for
the function of each business】

・Considering alternative production sites forimportant operations
Contributing to society and communities
・Contributing to disaster-resilient community development
by supplying Meidensha’s BCP products and corporate BCP
initiatives to communities and society●

BCM Promotion System【Decisions of BCP policies and measures】（2 meetings each year）（Internal Control Promotion Division）

Improving corporate and organizational resilience
・Encouraging independent promotion of BCPs
by business units, and work to improve Disaster
responsiveness by company organization●Domestic affiliates
BCP Sub committee【Share information
concerning formulationof subsidiaries' BCPs】

Basic BCP Policy
The Meiden Group Basic BCP Policy stipulates the Meiden
Group’s basic policy on business continuity, business
continuity targets, and response in the event of a disaster,etc., and is applied at each business unit and subsidiary.

Second Natural Disaster Response Headquarters
Training
On February 2022, we conducted natural disaster
response headquarters training in order to verify theeffectiveness of BCPs that have been created. The training
checked cooperation between members of business units,
responding business units, and remote sites, focusing
on the initial response after an earthquake directly underTokyo. We conducted hybrid in-person and remote training
in consideration of people who work from home, in lightof measures to combat COVID-19 and furter work-stylereforms. In September of the same year, we conducted
drills for dealing with damage caused by a major earthquake
at a production site at night, on a holiday.
We will revise BCPs in light of the various issues
identified during the training.

(1) In the event of a disaster, it is our utmost priority
to ensure the safety of all employees, their family
members, and customers.
(2) We contribute to swift reconstruction and recovery fromdisasters, considering our corporate social responsibility
as a company that supports social infrastructure.
(3) Limit impact on customers and Meidensha’s businesses
as much as possible.

Medium-term Management Plan 2024
Initiatives
We will promote the Medium-term Management Plan 2024,
paying particular attention to the following items relating todisaster-prevention and BCP.
Ongoing BCP initiatives●・Moving from an earthquake-based BCP to an“all-hazard” BCP that applies to a range of risks
・Establishing a BCP and creating systems tomaintain, evaluate, and confirm its effectiveness・Continuing education and training, and ensuringthat each employee is involved with BCP initiatives
・Extending the BCP to overseas subsidiaries, andcreating a BCP with a global perspective

55

MEIDENSHA REPORT 2022

Training in progress (headquarters)

Employee Education on Disaster Prevention and BCP
We conduct ongoing employee education in disasterprevention and BCP for each level of employment. In
FY2021, we conducted education for new employees
and mid-career hires. We also conducted video education
concerning disaster response tools and conducted wideranging education such as education for BCP managersof Group companies. Every year, we conduct disasterprevention drills at each works. We conducted BCP
education for all employees working in the Numazu areaat the disaster prevention drills held at Numazu Works in
December 2021.

Response to the Novel Coronavirus
Disease (COVID-19)
The global spread of the novel coronavirus disease(COVID-19) impacted the Meiden Group in ways such assuspension of production at overseas sites, delay of partsprocurement, and postponement of sales.
The Meiden Group established the Company-Wide
Response Headquarters, created the Novel Coronavirus(COVID-19) Response Action Guidelines and the Novel
Coronavirus (COVID-19) Response Manual, and isencouraging awareness of preventing infection (avoiding
the three Cs and reducing commuting outside of theregion of factories by 70%, etc.) with the health and safetyof employees as our utmost priority, and has reduced theimpact on business activities by continuing operation of all
factories in Japan in accordance with the guidelines.
Furthermore, we ensured both the health and safetyof employees and business continuity at overseas sites,by creating behavior standards to prevent infections, inaccordance with relevant national government policies. As
COVID-19 remains a difficult issue, we will promote newwork styles through greater use of Internet communication
tools.

Enhancement of Information Security
Risk Management
The Meiden Group understands that ensuring the securityof the information we handle is a most critical issue. We
therefore protect information assets from disasters,
accidents, criminal acts, errors, and other threats. We also
maintain and enhance information management to prevent
leaks, tampering, theft, or loss.
Meidensha’s Information Security Management
The Meiden Group conducts information security audits
of Meidensha and subsidiaries, mainly through theInformation Security Committee, and verifies and evaluates
whether security measures are actually being implemented
and function. At present, some of Meidensha and its
domestic subsidiaries have received Information Security
Management System (ISMS) certification.
The Meiden Group is working to implement sustainablesecurity measures in the areas of “prediction,” “defense,”“detection,” and “response.” We analyze and implement
both hardware and software measures to protect datafrom unauthorized logins, etc., and virus infections
from suspicious emails, as well as measures mainly
aim at combatting human factors such as theft, loss, ormishandling of information devices.
We introduced the Security Operation Center (SOC)in FY2017, established a detection system that operates
24 hours per day, 365 days per year, and in FY2019,

we installed next-generation antivirus software on allcomputers, in order to enhance detection. We establishedthe Meiden Computer Security Incident Response Team(CSIRT) and joined the Nippon CSIRT Association in orderto enhance response.
Information Security Education and Training
All of the Meiden Group’s officers, employees, dispatch
workers, and contract workers, etc., engage in information
security education. In FY2021, we conducted e-learning
concerning “information security threats based on examples.”We continue to conduct suspicious email drills as education
about cyber attacks such as targeted email attacks.
Going forward, we will continue to strengthen hardware
and software measures and continue to conduct personnel
measures, such as information security education andsuspicious email drills. We will continue to roll out measures
for information security on a group-wide basis.
Enhancement of Supply Chain Information Security
Since FY2017, we have continuously conducted activities
to enhance information security together with our suppliers.
We ensure that suppliers are aware of information security
measures as management issues, and we hold training
and information sessions as required. Since FY2021, we
have utilized IPA’s Security Action, encouraged business
partners(suppliers)to obtain stars (logo) to indicate levels of
information security measures, and commenced activities
to visualize evaluations. In this way, we are continuing
to conduct activities to enhance information security
throughout the entire supply chain.
Establishment of Resilience Lab Co., Ltd.
In August 2021, we established Resilience Lab Co., Ltd. as
a new startup company, with the aim of using our disasterprevention and BCP initiatives to give back to society andlocal communities and strengthen all of society’s resilience
to disasters. We propose optimal disaster prevention and
BCP measures to customers, and going forward, we aim tocreate new businesses that share stockpiles of power, fuel,etc., required in a large-scale disaster. In 2021, we wereselected by the Ministry of Economy, Trade and Industry for
the Temporary-Secondment Start-Ups Businesses, etc.,
and in April 2022, we received the “Award for Excellence” ofJapan Resilience Award 2022 (granted by the Association
for Resilience Japan).

Japan Resilience Award 2022 Award Ceremony

MEIDENSHA REPORT 2022

56

Initiatives and Policy for FY2022 and Beyond

Our Strategy

Power Infrastructures Business GroupFY2024 Management Targets

Orders59.5

billion yen

[55.8

]

billion yen

Net sales

Nobuaki Tamaki
Senior Managing
Executive Officer
in charge of the PowerInfrastructures Business
Group

57.5

billion yen

[52.3

]

billion yen

Operating income

1.3

billion yen

[ 1.8
▲

]

billion yen

Parentheses indicate FY2021 results

Reflecting on FY2021

Business Environment (Risks and Opportunities)

In FY2021, the Power Infrastructure Business Group’s net
sales increased by approximately 14% YoY; however, werecorded an operating loss, causing us to go further into
deficit.
In the Power T&D Business, which mainly operates
overseas, we have seen recovery in demand for power
equipment in Singapore, which is a major market for
Meidensha, and our new company in the U.S. is now
fully operational. On the other hand, Indian projects in theTransformer Business have been delayed due to the impact
of COVID-19, and the German Surge Arrester Business has
seen a fall in demand due to sluggish markets in Europe
and Asia, which is a major export destination, leading to an
extremely difficult year in terms of earnings.
In the Power & Energy Business, which is mainly
based in Japan, projects for power companies remained
steady, while we have secured sales equivalent to theprevious fiscal year due to an increase of projects relating
to renewable energy for the realization of a carbon-neutral
society. However, profit was pulled down by recording
expenses relating to bringing forward write-off of remaining
book value of existing wind turbines, etc., as a result of thedecision to replace wind farms for selling electricity.
Orders in major overseas regions showed solid
recovery from the COVID-19 pandemic, and there has
been vigorous demand for environmental products, suchas vacuum circuit breakers that do not use SF6 gas, which
contributes greatly to the greenhouse effect, particularly inNorth America. In Japan, we also have catered to demandfor electricity storage resulting from expanded use ofrenewable energy.

The Meiden Group considers recent social changes
for the realization of a carbon-free society to be a major
medium- to long-term boost. In particular, demand is
expected to increase for products and services about
which Meidensha has accumulated knowledge, suchas hydroelectric generators, power conversion systems(PCS) for photovoltaic generation or power storage, andO&M for wind generators, and initiatives in these areas
will contribute to the advancement of renewable energy
in society, and play a role in implementing and leading
Meidensha’s sustainability management. With regard todigital transformation and globalization of infrastructurethat is accelerated, opportunities for Meidensha to play arole are expected to expand going forward.
However, in addition to increased cost of materials andcomponents, transportation costs, and energy costs, there
are concerns that supply chain disruptions and delays,etc., will lead to delays in product delivery dates andproject progress. Furthermore, there are latent risks suchas decline in projects due to market stagnation, against a
backdrop of economic downturns and geopolitical risks,
etc.

57

MEIDENSHA REPORT 2022

Updating Medium-term Management Plan 2024
In the domestic market, we will continue to expand ourrevenue base by focusing on areas in which markets are
expected to grow, such as renewable energy-related
businesses, smart grids, and distributed energy sources,
which will lead to the achievement of our sustainability
management. In overseas markets, we will improve
profitability and strengthen our foundations by quickly
getting business bases on the rails in India, Vietnam, andthe U.S., and considering restructures in ASEAN and
Chinese locations.

In the domestic market, for the electrical power andprivate markets, we aim to increase application of global
production transformers us Indian manufacturing sites. We
will expand sales of environmental products (SF6 gas-freevacuum circuit breakers, etc.), and proceed with the launchof power storage PCSs with additional features, such as
inertial force functions. For the semiconductor market, we
will also shore up our businesses including by focusing
on launching products to meet customer needs, such asvoltage dip compensators, and in the renewable energy
sector, increasing ICT services utilizing the renewable energy
cloud and expanding maintenance efforts relating to wind
power generation for other companies’ equipment. In the
Hydroelectric Power Plant Business, we will also expand
business opportunities by enhancing product profitability
through increased productivity, shorter lead times, andbuilding a solid relationship with our partners such as
general contractors and subcontractors, as well as work tojoin the O&M market through further cooperation with Group
company EAML Engineering Co., Ltd. and using ICT.
In overseas markets, establishing and strengthening
profit structures for overseas local subsidiaries by ensuringthat we implement measures to increase revenue foreach country, region, and product is a major goal for us.
For example, in India, we aim to maintain and increase
our share of transformers for renewable energy-related
projects, and increase profitability, while giving priority tomaintaining superiority from quality and cost perspectives,and securing orders for rail projects in India. In Vietnam,
we will promote earning capabilities by steadily engaging inprivate projects, including those for Japanese companies,
through improved cost and production management. In
Germany, we aim to further focus on marketing activities
for major customers, while in the U.S., we aim to improveorganizational capabilities by strengthening our HR strategy
and enhancing our production systems, while improving
our profit margins by reducing procurement costs.
With regard to increasing our environmental productlineup and launching products early, we will focus ondevelopment of a medium-voltage eco-friendly C-GIS
for the ASEAN market, and Singapore in particular,
and acceleration of our measures to respond to global
environmental regulations, by expanding our extra-highvoltage circuit breaker lineup, with the North American
market as the main target.

Voltage dip compensator

TopicsParticipation in the Circular Local Economy Renewable Energy Aggregation Demonstration Projectwith the Chubu Electric Power GroupIn the midst of expanding introduction of renewableenergy, as expectations increase of baseload powerusing energy resources such as batteries andelectric vehicles contributing to stable power supply,
since 2020, Meidensha has been participating in an
aggregation demonstration project using distributed
energy sources such as renewable energy and storage
batteries. Chubu Electric Power Miraiz Co., Inc.,
coordinates the whole demonstration project, unifying
renewable power sources installed in the Chubu,<Model of Local Economic Circulation>
Provision of resources
Renewable energy
generation

Kansai and Kyushu areas as resources, and Meidensha
plays the role of a water pump aggregator. Through thedemonstration, the project aims to develop systems
and control methods necessary to control diverse
resources that serve as coordinating power, to promotelocal production for local consumption of renewableenergy sources and optimal operation of coordinating
power, and to realize a regional economic circulation
type decarbonization model.

Local
companies

Provision of resources

Value of non-fossil fuelChubu Electric Power
MiraizConsumers

Platform provision

Coordination of diverse power sources

Support for expansion ofrenewable energy

Localgovernments

Revitalization of local
economies

From June 2, 2022, Chubu Electric Power Miraiz Co., Inc. press release “FY2022 Renewable Energy Aggregation Demonstration Project”

MEIDENSHA REPORT 2022

58

Our Strategy

Public, Industrial & Commercial Sector Business GroupFY2024 Management Targets

Orders95.0

billion yen[95.5 ]
billion yen

Net sales

Satoshi Momenya
Managing Executive Officer
in charge of the Public,
Industrial & Commercial
Sector Business Group

94.6

billion yen[94.7 ]
billion yen

Operating income

6.1

billion yen[6.1 ]
billion yen

Parentheses indicate FY2021 results

Reflecting on FY2021

Business Environment (Risks and Opportunities)

In FY2021, the Public, Industrial & Commercial Sector
Business Group’s net sales rose approximately 7% YoY,
leading to a significant increase in operating income.
In the railway business, conditions were harsh due toJapanese customers (rail operators) cutting down on
capital investment and pushing back tender periods,
and overseas customers having projects delayed due tothe impact of the COVID-19 pandemic. However, in thesocial infrastructure systems sector, large-scale projects
are progressing apace in Japan, Thailand, and Indonesia,
and the water infrastructure sector has led the wholeGroup in terms of results, due to posting record net sales,against a backdrop of strong demand for replacement of
infrastructure due to the national resilience plan promotedby the Japanese government.

The Japanese social infrastructure market, a certain
amount of public investment is expected to continue fora while, due to replacement of aging infrastructure andincreased BCP needs to respond to increasing severity ofnatural disasters, etc. However, in the medium to long term,
it is anticipated that the scale of investment will decline
and ordering patterns will change, etc., due to population
decline and financial difficulties of local governments. It
is anticipated that new business opportunities will arise
and new competition will emerge due to rationalizationof maintenance services and labor-saving measures for
operation, maintenance, and management, etc., as aresult of accelerated digitalization through the use of the
IoT, AI, and cloud computing. In addition, it is expectedthat the need for environmental products and services willgrow rapidly going forward, particularly those relating togreenhouse gas reduction.
Overseas, demand for infrastructure, such as electricity
and rail networks, is expected to continue as a result of
the progression of increasing population and urbanization,
particularly in developing countries. However, there arerisks such as lower profit from large-scale projects, etc.,
due to the impact of the COVID-19 pandemic, politicaltrends, and exchange rates, etc., and increased andintensified competition from local and overseas companies(Europe, China, Korea, etc.)
Risks we are particularly concerned about in FY2022
include increased cost of parts and materials, anddelayed deliveries. We will strive to minimize the impact
by reducing procurement costs and sharing information
closely with sales and engineering departments, factory,
construction departments and procurement departments
so that production and on-site construction can proceed
as scheduled.

Updating Medium-term Management Plan 2024
As orders in the water infrastructure sector were strong,
we have upwardly revised net sales and profit targets in
Medium-term Management Plan 2024. In addition toexisting businesses, we will promote solution proposal
activities to provide general responses to the social issuesof decarbonization, increasing severity of natural disasters,
and BCP (business continuity planning) being confronted by
local governments in response to the declining population,and promote increased competitiveness by further
promoting collaboration with the Field Service Engineering
Business Group and companies in other industries, andpartnerships, etc.

59

MEIDENSHA REPORT 2022

Initiatives and Policy for FY2022 and Beyond
In the social infrastructure sector, in Japan, we will aim
to designate the public infrastructure of rivers, roads,
and harbors, as well as broadcasting, etc., as important
areas, and overseas, improve our ability to made detailed
proposals to markets and customers by focusing ourbusiness resources on the areas of Thailand, Malaysia,
and Indonesia, expand business, and increase profitability.
In the railway business, we will expand our share of thedomestic market with specialty products such as overheadcatenary system (OCS) inspection systems as key
products. With regard to large-scale projects undertakenby overseas local subsidiaries, we will aim to shore up ourprogress, profitability, and risk management systems, andincrease profit while delivering security and reliability to ourcustomers.
In the water infrastructure sector, we will work toenhance our HR and organizational systems to cater toongoing demand for replacement, maintain our businessadvantages, such as technology and knowhow built up
over many years, secure digital technology necessary tomaintain competitiveness, build partnerships to expand
PPP (public-private partnerships) and business areas,

reduce reworking and shorten lead times by sharing
information between sales, technology and factorybusiness units, etc.
As an initiative to improve organizational capabilities,
we will systematically secure and train human resources,
with a focus on engineers, achieve standardization ofworkloads through promotion of digital transformation,
respond to customer needs by implementing for carbon
neutrality and BCP measures, as well as lightening
maintenance loads due to labor shortages, and establish
and strengthen our business foundation so that we canmake optimal technological proposals according to thelifecycle of equipment.

Water treatment plant supervisory control system through PPP

TopicsContributing to Safe, Secure, and Prosperous Lifestyles by Delivering Equipment to
Broadcasters that Cannot Allow Downtime
In 2021, Meidensha delivered all electrical equipment,
including power supplies for broadcasting equipment,
to the new headquarters of Hokkaido BroadcastingCo., Ltd. (Sapporo). Hokkaido Broadcasting Co., Ltd.
was established in 1951, and is the oldest private TV
and radio broadcaster in Hokkaido. It creates andbroadcasts programs in a range of genres for the wide
broadcast area that is Hokkaido. As it is the responsibilityof broadcasters to continuously transmit information toviewers and listeners, this electrical equipment is used
in a unique environment that does not allow for any
downtime.
High/medium/low-voltage
distribution
panels,uninterruptable power supplies, DC power supplies,
etc., have been installed to supply electricity to thewhole building, electricity supervisory control equipment

has been installed to provide 24-hour monitoring of
the status of electrical equipment, and emergency gas
turbine generators have been installed as a backup
power supply. The generators also have a instantaneous
grid interconnection function so that it is possible toinstantaneously switch without occurrence of power
cut between the secondary line and the main line if
there is an issue with supply from the power company
or if power is restored and supply switches back fromthe emergency generator to regular supply. Meidensha
will continue to provide products and services that are
relied on by the broadcast sector, and build prosperous
lifestyles by supporting the foundation of broadcast
infrastructure that ensures that necessary informationis always provided.

Hokkaido Broadcast: Broadcasting station equipment

Hokkaido Broadcast: Broadcasting station equipment

MEIDENSHA REPORT 2022

60

Our Strategy

Mobility & Electrical Components Business GroupFY2024 Management Targets

Orders97.0

billion yen[65.3 ]
billion yen

Net sales

96.0
Masahiko Suzuki
Senior Managing Executive Officer
in charge of the Mobility & Electrical
Components Business Groupbillion yen[63.8 ]
billion yen

Operating income

7.1

billion yen[ 0.2 ]▲

billion yen

Parentheses indicate FY2021 results* The EV Components Business Group’s performance figures are included in the results of the Mobility & Electrical Components Business Group.

Reflecting on FY2021

Business Environment (Risks and Opportunities)

In FY2021, the Mobility & Electrical Components BusinessGroup’s net sales rose approximately 22% YoY; however
operating income declined slightly. Profit increased for theElectronics Products Business, which was the beneficiaryof a favorable semiconductor market, and business income
also increased for the EV business due to contributions
from the increased number of models sold, etc., in spite ofincreased amortization expenses. However, the Motor Drive
Business, which was impacted by rising prices of materials
and components, and the Mobility T&S Business, which
continued to face extremely harsh business conditions
recorded lower income.
In the Motor Drive Business, demand for electric forklifts
improved, and in the automated guided vehicle (AGV) sector,
inquiries increased in order to save labor. On the other hand,demand for motors for injection molding machinery due to“stay home” caused by the COVID-19 pandemic reached tocompletion and sales of elevator motors decreased due tothe impact of the slowdown in the Chinese market, etc. In thisway, demand was mixed, depending on the field of delivery.
In the Electronic Products Business, we recorded ourhighest-ever orders received and net sales, due to ongoingstrong demand in the semiconductor manufacturing
equipment market throughout the year, and secured a highlevel of profit. However, there was downward pressure on
profit in some sectors due to increased prices of parts andmaterials in the latter half of the fiscal year.
With regard to the Mobility T&S Business there was atrend toward more limited investment in the automotive
industry that continued from last year, and there was greatchange in customers’ R&D investment targets. As a result, we
put our energy into expanding our lineup of testing systems
used for development of electric vehicles, and promoted
initiatives to lower our break-even point by reviewing ourbusiness structure.

Automated guided vehicles (AGV) and drive components
for electric forklifts provide an opportunity for market
expansion in response to factors such as increased needfor labor reduction against the backdrop of both the
COVID-19 pandemic and declining working-age populationin Japan, and the shift to electric industrial vehicles due tothe need for decarbonization.
In the Electronics Products Business, we expect
demand for our products to remain at a high level, andaim to market Meidensha’s vacuum capacitors in the
North American market in particular, as demand forsemiconductors is growing throughout the world.
In the Mobility T&S Business, as customer investment
continues to accelerate in sectors such as CASE
implementation and model-based development, we should
treat this as an opportunity, and we will focus on increasing
sales of equipment to support digital analysis and evaluation,
EV motor stand-alone evaluation benches, etc.
Group-wide risks that must be monitored anddealt with include delayed sales due to slow delivery ofcomponents and materials, impact on orders received due
to extended lead times, and decreased revenue due to
inflationary costs of parts and materials.

Refer to EV Components Business Group on p. 63–p. 64 regarding the EV
business strategy.

61

MEIDENSHA REPORT 2022

Updating Medium-term Management Plan 2024
In the Mobility T&S Business, we will create new products,
such as battery charge-discharge system and EV chassis
dynamometers specialized for development of electric vehicles,
and actively propose new services that meet customer needs,
such as full turnkey maintenance for products that have alreadybeen delivered. With regard to the Motor Drive Business, we aim
to expand sales of products that promote labor-saving, energysaving, and electrification measures in industry by incorporating
cutting-edge technology and strengthening partnerships. With
regard to the Electronics Products Business, we will focus on
expanding our business scale and share, such as by developing
new customers in the U.S.

Initiatives and Policy for FY2022 and Beyond
We will promote the foundational measures of growing in
respond to the market, and increasing profitability as majorGroup-wide themes.
In the Motor Drive Business, we will clarify the rolesof each Group company that deals with motors, organize
models, and optimize production sites. With regard toindividual products, for elevator, we aim to expand shareof new models in the area of repairing existing elevator
traction machines, and for the high-speed motor segment,
we aim to shift our targets to Japan and the U.S. and deliverdemonstration models in order to expand applications. For
industrial vehicles, going forward we will apply technology
of EV drive units we have already acquired through yearsof experience to develop the electrical construction
machinery market, adding to our existing electric forklift
products. In the automated guided vehicle (AGV) sector,
we will focus on expanding sales of AGVs fitted with robots
through collaboration with SI and robot manufacturers,
and cultivate demand for maintenance and replacement bycommencing cloud services.
In the Electronics Products Business, we will prioritize
stability of production and quality systems in order to
respond to current strong demand, and particularly
with regard to vacuum capacitors, one of our mainstay
products, we aim to use quality improvement activities andenhancement of productivity as a stepping stone to increase
sales of products to North American semiconductor

manufacturers, and increase our market share. We will also
implement necessary measures to respond to difficulties
procuring materials and rising prices, including placing
orders in advance, adopting alternative components, andreviewing sale prices.
In the Mobility T&S Business, the automotive industry,
which provides our main customers, is in the midst ofa recovery from the drop in business results due to theimpact of the COVID-19 pandemic. Similarly, in the testing
equipment market, we are seeing a rebound from two years
of investment restraint, so investment is gradually on an
increasing trend, centered around CASE. Going forward,
we will join the battery testing market using battery chargedischarge system as oneof weapons in our arsenal.
Leveraging our knowledge andknowhow developed throughmany years of experience inautomotive testing equipment,
we will incorporate full turnkey
maintenancebusiness,
including automotive testing
consultations for customer
who encounter difficulties, andtesting building maintenanceand management support for
products that have already New model RocoMo-V automatedbeen delivered.
guided vehicle fitted with cooperative
robot

TopicsTotal of 1 Million Vacuum Capacitors Shipped as Semiconductor Market is Favorable
In October 2021, the cumulative number of Meidensha
vacuum capacitors shipped reached 1 million units intotal. Vacuum capacitors are incorporated into powersources for semiconductor manufacturing equipment.
There are capacitors in which the electrode section that
stores electric charge is placed in a ceramic vacuum
container. They are mainly incorporated into highfrequency power sources used to generate plasma forthin-film manufacturing equipment, such as etching,
sputtering, and vacuum deposition (CVD, PVD) inprocesses of semiconductor manufacturing, and theirfeatures include compactness, ability to withstandhigh voltage, and minimal loss, etc., in high-frequency
applications.
Meidensha started researching vacuum technology
in 1965, and have accumulated technology andknow-how regarding vacuum products through thedevelopment and manufacture of vacuum circuit
breakers for more than half a century. We commenced
development of vacuum capacitors in 1990, and we
started manufacture and sales in 1995, solving issues
and growing alongside our customers. Since then, as
the recent growth of semiconductor market, we haveproceeded to ship 500,000 units in the five years since2016, and we currently have a monthly production
volume in excess of 10,000 units.
With regard to semiconductor manufacturing
equipment, it is important to have components
performance that achieve cutting-edge manufacturing
processes, a reliable which minimizes process
downtime and long-term, stable power supply withlimited fluctuation. Going forward, we will continue
to aim to improve technological capabilities andcreate high-performance products, while striving for
manufacturing that takes into account low cost, BCP,
and environmental performance.

MEIDENSHA REPORT 2022

62

Our Strategy

EV Components Business Group
Production capabilities for each EV site
EV inverters

Numazu Works

Nagoya Works

Tatsuki Mochizuki
Senior Managing
Executive Officer
in charge of the EV
Components BusinessGroup

KOFU MEIDENSHA
ELECTRIC MFG. CO., LTD.

250,000

units/year

EV integrated motor and inverter units

170,000

units/year

EV motor/generators

370,000

units/year

EV motor/generators

MEIDEN HANGZHOU DRIVETECHNOLOGY CO., LTD.

100,000

units/yearLine 2 (integrated motor and inverter units)
To commence operation in FY2023

100,000

units/year* The EV Components Business Group’s performance figures are included in the results of the Mobility & Electrical Components Business Group.

Reflecting on FY2021

Business Environment (Risks and Opportunities)

The EV Components Business Group’s FY2021 net sales
and operating income exceeded those of FY2020 mainly
due to full-scale production of products for new vehicle
models, for which shipments began from the second halfof the fiscal year.
With regard to external conditions, this was a yearthat clearly signified that the electric vehicle market would
expand over the future due to factors such as Japanese
automotive manufacturers pledging to mostly shift toelectric vehicles going forward, and even more distinct
signs that EVs would expand in Europe and China in themedium to long term. However, the COVID-19 pandemic
and supply chain disruptions, such as vehicle-mounted
semiconductor shortages, have had a significant impact on
automotive manufacturers’ production plans, and forecast
fluctuations have had a major impact on Meidensha’s
production activities.
In October 2021, MEIDEN HANGZHOU DRIVETECHNOLOGY CO., LTD. commenced mass production
and shipping from Line 1, and net sales are expected toincrease even more in FY2022. Construction of Line 2,
which will commence operation in FY2023, is progressing
smoothly. In Japan, the operating rate of integrated motorand inverter unit production lines, etc., at the Nagoya
Works is slowly increasing, due to the commencement of
production of units for new vehicle models.
As initiatives aimed at further business expansion, we
thoroughly promoted marketing activities to secure newmodels and new customers and development of products
aimed at entering the e-Axle market.

The electrification of mobility is becoming irreversible withthe movement to achieve carbon neutrality growing instrength throughout the world, and countries successively
announcing policies aimed at gasoline-free vehicles,
etc. However, automotive manufacturers’ results andproduction activities are impacted by risks of extensionof concerns relating to vehicle-mounted semiconductor
supply and supply chain disruption increasing, extensive
increase in the cost of materials, components, and energy,
prolonging of the COVID-19 pandemic, etc. In the electric
powertrain segment, market competition is intensifying,and products are rapidly becoming commoditized in themarketplace.
In these business conditions, we must increase thescale of sales to enhance our component procurement anddevelopment capabilities in order to continue our presencein the market. We will strengthen relationships and further
deepen trust with existing customers, and promoteenhanced proposals to automotive manufacturers andtier-1 manufacturers, both in Japan and abroad, using our
track record and technological superiority to differentiate
ourselves from the competition.

63

MEIDENSHA REPORT 2022

Updating Medium-term Management Plan 2024
In the EV Components Business, important themes
are to improve the operating rate of lines at factories in
Nagoya and China, and reduce the cost of products
through procurement activities. We will continue to focus
on proposal activities and aim to secure more orders
received, in order to promote acceptance of load fromFY2025 onwards. We will also firmly promote researchand development to foster businesses that can contributeto medium- to long-term earnings, and we will achievebusiness expansion and increase profitability, with a viewto capital investment to expand production capabilities asnecessary, etc.

Initiatives and Policy for FY2022 and Beyond
Throughout the whole automotive industry, the impact
of supply chain disruptions and the ongoing COVID-19
pandemic is expected to continue, while there is also a
possibility of production of automobiles picking up rapidly
as current external conditions improve, due to sales ofelectric vehicles steadily increasing in each country, andnew vehicle models that are attractive to consumers
successively entering the market. Meidensha must build aflexible production system that is capable of handling load
variations in such a short time frame.
At factories in Japan, we aim to secure agility andefficiency at production sites by reviewing and rethinking
shift patterns. In China, we will ensure smooth production
from FY2023 through vertical startup of equipment andpromoting education of local staff, in order to achieve fullscale operation of Line 2.
From the perspective of increasing competitiveness, wewill accelerate activities to cut variable expenses throughthe dedicated EV procurement department that wasestablished this fiscal year, and building stronger supply
chains. We will also promote development and design of
motors and inverters without being bound by previous
ideas, with an eye to next-generation EV drive units, andfocus on sales activities in Japan and abroad.

The MEIDEN e-Axle, which achieves a slim form and high power density

TopicsCommencement of Production and Launch of Line 2 at Meidensha’s First Overseas
EV Business Site
MEIDEN HANGZHOU DRIVE TECHNOLOGY CO.,LTD. was established in Hangzhou, Zhejiang Province,
China. It is Meidensha’s first overseas EV Components
Business site, and Line 1 commenced mass production
and shipping of products to customers within China
in FY2021. This production line manufactures EV
motors and generators with the production site in Kofu,
Yamanashi, Japan, as a mother factory. At present,
we aim to manufacture 100,000 units per year, but
as electrification of vehicles is rapidly progressing, we
expect the scale of business activities to increase in the
future.
When operation commenced after the company
was established, we dispatched personnel suchas production engineers from Japan, and engaged
in building and adjusting the line. Also, in terms ofprocurement, we have promoted the establishment of

a supplier network, with the cooperation of MEIDEN
HANGZHOU DRIVE SYSTEMS CO., LTD. which
has engaged in the production of motors, inverters,
etc., for elevators and textile machinery at the same
location since 2006. To that end, we are focusing on
securing and developing exceptional local personnel,
we are making daily improvements to achieve stableproduction through a combination of local staff andengineers from Japan, and we are working to increase
competitiveness, such as by improving first-run rate andoperation rate. Line 2 is scheduled to newly commence
operation in FY2023.
Going forward, the Meiden Group will contribute to
the realization of further penetration of electric vehicles
and a carbon-free society by providing high-quality andhigh-efficiency EV drive units.

EV factory Line 2 under construction

Employees of MEIDEN HANGZHOU DRIVE TECHNOLOGY CO., LTD.

MEIDENSHA REPORT 2022

64

Initiatives and Policy for FY2022 and Beyond

Our Strategy

Field Service Engineering Business GroupFY2024 Management Targets

Orders42.0

billion yen[41.8 ]
billion yen

Net sales

41.6
Hideki Miyazawa
Managing Executive Officer
in charge of the Field Service
Engineering Business Groupbillion yen[39.5 ]
billion yen

Operating income

6.0billion yen[5.9 ]
billion yen

Parentheses indicate FY2021 results

Reflecting on FY2021

Business Environment (Risks and Opportunities)

Although the Field Service Engineering Business Groupwas impacted by the COVID-19 pandemic in FY2021,
net sales and operating income rose YoY, as the need formaintenance of products and equipment remained strong,leading us to record our highest-ever profit for the fourthconsecutive year.
Orders received increased significantly due to our onestop solution for services, which combines all equipment
maintenance services for customers, including mechanicaland HVAC equipment, as well as electrical equipment,
and we have received praise for our solution proposals
that respond to changing societal needs by emphasizing
conservation of energy and reduction of greenhouse gas
emissions for customers. In addition, our walk-throughs,
in which we accompany our customers on their equipment
inspections and make various proposals concerning
equipment, from an on-the-ground perspective, have also
shown results.
Ｗith regard to initiatives for smart maintenance, there
is a growing need for maintenance services that utilize
cutting-edge technology against the backdrop of labor
shortages due to the declining birthrate, aging population,and declining population. In addition to operating
condition monitoring solutions that constantly monitor
on-site facilities and equipment using various sensors
and measuring devices, we have been engaged in a wide
range of solutions proposal activities, including remote
maintenance & assistance services using your smart
glasses equipped with cameras at the site.
With regard to the maintenance and servicing businessfor manufacturers of semiconductor manufacturing
equipment, we have also actively promoted initiatives toexpand our maintenance stock in the future from sales ofequipment by agents, leveraging our product knowledge
developed up to this point.

Having been through an economic slump due to the
COVID-19 pandemic, the impact caused by reconsiderationor postponement of replacement investment for equipment
has been apparent in a range of industries. However, therequirements to the maintenance services provided by
the Meiden Group have been growing, as there has been
increased demand for life extension to allow continued use
through maintenance and repair of existing equipment. On
the other hand, at present, risks of delays in sales fromorders received are anticipated, due to delivery of various
types of components and materials being delayed, andwe are implementing measures on procurement, etc., tominimize these.
Due to recent social trends, the need to enhance
resilience has been increasing, and we will firmly capturea resulting increased demand for maintenance services,and we believe that we will be able to solve issues of ourcustomers and society, and grow as a business that can
provide new added value, by promoting mixed proposals
that include mobile power supply vehicles with options for
BCP measures, etc.

65

MEIDENSHA REPORT 2022

Updating Medium-term Management Plan 2024
We will continue to focus on one-stop solution forservices initiatives, in order to ensure that we capture
strong demand for maintenance services and further
expand business opportunities. We will also conduct
maintenance innovation by promoting the use of smart
technology for maintenance services by utilizing ICT
and IoT, and aim for our business operations to broadly
contribute to the solution of customers’ issues such as byevolving from time-based maintenance (TBM) to conditionbased maintenance (CBM), enhancing development ofmaintenance service personnel, and providing services
rooted in local communities.

Group company MEIDEN ENGINEERING CORPORATION
received accreditation as a supporting organization forthe pilot project to promote support for high-efficiency
installations for facilities with targets (SHIFT Project), which
was supported by the Ministry of the Environment, in orderto capitalize on society’s generally heightened awarenessof achieving decarbonization for business expansion.
We will diagnose and understand customers’ equipment
introduction and operation status, energy usage, etc.,
support development of decarbonization promotion plansto achieve CO₂ emissions reductions, and provide support
for grant application procedures, etc.
In development of technology using ICT and IoT, wewill endeavor to visualize CO₂ emissions from equipment,
and promote development of “small smart maintenance”
emergency generator continuous monitoring system.
With regard to supporting customers’ BCP measures,
we will popularize and expand the BCP options of
cashback through rental to other companies while not in
operation, one-stop outsourcing of vehicle inspection andgenerator maintenance, transportation of mobile power
supply vehicles to other sites, and priority supply of fuel inan emergency for customers of Meidensha’s mobile power

supply vehicles that became available in April 2021, andcontribute to preparation for emergencies.
In terms of professional development, we will focus onpromoting development of multi-skilled service personnel
and rapid competitiveness, and transmission of technology
and skills using IT tools, by maximizing the use of thetechnology education center, Manabi-ya.
Going forward, we will achieve maintenance innovationand provide new solutions and experiential value tocustomers, in order to further improve added businessvalue. Through these initiatives, we will contribute to themaintenance and improvement of safe and stable social
infrastructure.

Mobile power supply vehicle with new BCP options

TopicsSupporting the Vigorous Semiconductor Market Through Expanded Maintenance
Services for Semiconductor Manufacturing Equipment
MEIDEN ENGINEERING CORPORATION is rolling out
and providing installation and startup services for semiconductor manufacturing equipment and ancillary facilities, and renovation and maintenance services for usedequipment, contributing to the growth of the semiconductor market by supporting the stable operation ofcustomers’ production lines.
At present, we promote the service (including
business units for renovation of used equipment, andassembly of equipment) anchored by a group in Chiba,
as well as service base in Kanagawa, Aichi, and Yamanashi, where semiconductor device manufacturers
have production sites, to provide maintenance services
to customers at approximately 70 locations in Japan. We
are rolling out services for the entire life cycle of equipment, from introduction of semiconductor manufacturing
equipment to operation, life extension, and replacement.
In response to recent positive semiconductor
market conditions, orders for maintenance from vehicle-mounted device manufacturers and power device
manufacturers for social infrastructure have been trending upwards since around 2021. We have seen changes from customers that have previously requested spot
maintenance, such as ordering maintenance workwherein Meidensha’s maintenance service personnel
are stationed at the customer’s premises for a certain
period of time. At present, we are increasing personnel
and enhancing collaboration with partner companies inorder to respond to vigorous demand.
Since 2018, we have been concluding agency
agreements with exposure equipment manufacturers,
and we have been planting seeds to increase maintenance stock in the future as MEIDEN ENGINEERINGCORPORATION receives commissions from sales
through to maintenance services. Going forward, we
aim for the growth and progress of semiconductor
manufacturing equipment-related businesses whileremaining open to collaboration with vacuum equipment manufacturers, to leverage vacuum technology,
concerning which we have extensive technology andknowledge.
Technology Services to Develop(Semiconductor Manufacturing Equipment LCE)
OverhaulingRetrofitting● Component repair

Equipment refurbishment
Carrying out/in and transport● Dismantling of equipment

●

●

●

●

Life
Extension

Replacement
andRestoration

Equipment
LCE

Permanently
Stableon-siteOperation
maintenance● Fault repair● Inspection and diagnosis●

Sales(including restoration)● Startup adjustment●

Introduction

Operation

Operation training
Maintenance training● Service during
warranty period●●

MEIDENSHA REPORT 2022

66

Our Strategy

Overseas Businesses

THAILANDINDIANORTH AMERICA

Contributing to the Advancement of Sustainable
Societies in ASEAN Nations Through the Meiden
Group’s Only Biomass Power Generation EPC Business

Aiming to Stabilize Production in India and Maintainand Improve Market Competitiveness for Our
Transformers

Aiming to Expand Sales of SF₆ Gas-Free Products at
North American Sites Increasingly Trending Toward
Environmental Conservation

Biomass power station delivered to the Ajinomoto Kamphaeng Phet factory in Thailand

Meiden Global Transformer that was tested in India before shipping

145-kV tank-type vacuum circuit breaker delivered to the Golden Valley Electric
Association (“GVEA”) located in Alaska, USA.

THAI MEIDENSHA CO., LTD. is the oldest overseas
subsidiary in the Meiden Group, reaching its 56th
anniversary this year. Thailand is a place where Japanesecompanies conduct their business activities and have
many manufacturing sites. We have provided support
for customers to launch new sites through turnkey
commissions for electrical and mechanical construction,etc., and contributed to the development of Thai industrial
and social infrastructure, for over half a century.
As environmental awareness further strengthensinternationally, in Thailand, introduction of biomassenergy as a power source to replace fossil fuels is
gaining pace. Meidensha has actively participated in theconstruction of biomass power stations, and, to this point,
has been involved with the construction of 13 biomass
power stations, including four EPC projects (one underconstruction) and boiler-only construction projects, andhas accumulated knowledge and know-how concerning
power station construction. In FY2020, we contributed
to reducing our customers’ environmental impact frombusiness activities, reducing our customers’ energy costs,
and improving our customers’ stable supply of electricity,such as by working to construct a biomass power plantthat uses grain husks for fuel at the Ajinomoto Kamphaeng
Phet factory in Thailand.
Going forward, we will continue to contribute to therealization of sustainability management for the entire
Meiden Group, with the aim of being a general engineering
company that contributes to the development of sustainable
societies in Thailand and ASEAN countries.

In India, which has a population of approximately 1.4 billion,
demand for electricity continues to increase, and strong
growth is expected for electrical infrastructure-related
businesses, against a backdrop of progressing economic
development and urbanization.
In 2014, the Meiden Group invested in a local company
involved with transformer manufacturer and sales. In
September 2021, we completed 100% acquisition as a
subsidiary, changed the name to MEIDEN T&D (INDIA)
LIMITED, and we are accelerating business development
as a site to expand the Power T&D business in Asia.
MEIDEN T&D (INDIA) LIMITED has an annual 10-GVA
production capacity equivalent to Meidensha’s Numazu
Works transformer line. It sells transformers to the Indian,
Asian, and African markets, and we are working on
fragmentation of production processes between Numazu
and India, in order to provide products to the JapaneseMarket, including for power companies. Under this initiativefor Meiden Global Transformer with the fragmentation,
we will work to introduce working conditions, quality
management, and process management, equivalent tothose at the production line of the Numazu mother factory,
and manufacture competitive products while maintaining
Japanese quality. In order to achieve this, we will conduct
initiatives such as dispatching instructors from Japan,
improving education and equipment for local staff, andproviding quality guidance for local suppliers.
Through initiatives such as these, we will continue
to stabilize the operation of production lines in India andmaintain and improve market competitiveness for ourtransformers.

MEIDEN AMERICA SWITCHGEAR, INC. delivered a 145-kV
Ecotank-type vacuum circuit breaker to the Golden Valley
Electric Association (“GVEA”) located in Alaska, USA. Thisdelivery of a 145-kV Ecotank-type vacuum circuit breakerthat does not use SF6 gas is a world first.
In the North American region, the trend to actively
employ products with excellent environmental features
is continuing, against a backdrop of increased demand
for replacement of aging electrical equipment andenvironmental awareness. Meidensha developed Ecotanktype vacuum circuit breakers that do not use any SF6 gas,
which has 23,500 times the greenhouse impact of CO2, inthe early 2000s, and so far, we have delivered over 2,500
units in Japan and overseas, which has led to frequentinquiries and orders in North America.
SF6 gas-free Ecotank-type vacuum circuit breakers
manufactured by Meidensha have environmental merits,
as well as providing value by reducing life-cycle costs byeliminating the need for a heater to prevent liquification
when installed in a cold location, eliminating the need forwork to recover SF6 gas upon disposal, and achieving low
maintenance.
I want to make MEIDEN AMERICA SWITCHGEAR,
INC. the best company in the industry, with providing highquality products and attracting the best engineers.
Going forward, we aim to continue to hone ourmanufacturing capabilities, establish a local presence, andincrease our share.

Initiatives to Enhance Profitability

Working Toward Increased Profitability
and New Global Infrastructure Demand
Through Localization of Business
Management and Site Restructuring
Globally heightened environmental awarenessand progress of digitalization has created demand
for new infrastructure, particularly in developed
countries, and we consider this to be a significant
business opportunity for the Meiden Group.
However, conditions for overseas businesses
are increasing in severity, due to factors such as
the impact of the COVID-19 pandemic and the
manifestation of various geopolitical risks.
In this environment, the Meiden Group willquickly get businesses off the ground in India andNorth American sites, which is still in the setup
phase, , and we will promote business expansion
for local power companies and railway operators,
and Japanese companies in Southeast Asia, whichis key for our overseas businesses.
From a medium- to long-term perspective,
we are promoting localization of business
management by developing and appointing
local personnel, which are key for each country,
enhancing supply chain management, andconsidering site restructuring for more efficientbusiness management, and we will further increase
profitability of overseas businesses and create astrong business foundation.

67

MEIDENSHA REPORT 2022

Atsushi Nakano

Ko Yamamoto

Stephanie Hayden

Managing Director
THAI MEIDENSHA CO., LTD.

Managing Director
MEIDEN T&D (INDIA) LIMITED

General Manager, VCB Sales
MEIDEN AMERICA SWITCHGEAR INC.

MEIDENSHA REPORT 2022

68

Corporate Information

Financial Strategy

Research and Development / Intellectual Property Strategy

The Meiden Group will conduct thorough financial
management of the entire Group, and conduct investmentswith acquired capital and shareholder returns. Under thecurrent medium-term management plan, we anticipate a total
cash flow over four years of between ¥70.0 billion and ¥75.0
billion. Our policy is to use this to conduct capital investment
and shareholder returns, and to promote stabilization of our
financial base. With regard to financial metrics, we hope tohave a net worth of ¥120.0 billion and a net D/E ratio of 0.25
to 0.30 by the end of FY2024. With regard to our investment
strategy, we will conduct total investment over four years of¥60.0 billion, including general and growth investments. With
regard to capital efficiency, we have set targets of ROE of
10% and ROIC of 8%, and we aim to achieve high-quality
growth and be a company that grows in a sustainable
manner through sustainability management. With regard toshareholder returns, we will determine the value of dividends
with a target payout ratio of 30% on the assumption of

stable dividends. With regard to capital procurement, ourbasic policy is to work toward optimal capital procurement
while striking a balance between the proportion of long- toshort-term financing, as well as direct and indirect financing.
Starting with the issue of green bonds in FY2019, we haveactively promoted sustainability in capital procurements, suchas through sustainability-linked loans and positive impact
finance. We consider this to be a procurement method thathas a high affinity with Meidensha’s business, achieving
both business development and environmental and social
contribution, and we will continue to actively consider thistype of sustainability financing going forward.
Through a series of measures, we aim to achieveorders of ¥300.0 billion, net sales of ¥300.0 billion,
operating income of ¥18.0 billion, ordinary income of ¥17.5
billion, and net income attributable to owners of parent of¥12.0 billion by end of FY2024, which is the final fiscal yearof Medium-term Management Plan 2024.

Financial Targets (consolidated)(In billion yen)

FY2021 results

FY2022 initial forecast

FY2024 targets

Orders

259.6

270.0

300.0

Net sales

255.0

270.0

300.0

Operating income

9.4

12.0

18.0

Ordinary income

10.2

12.0

17.5

Net income attributable to owners of parent

6.7

8.4

12.0

ROE

6.8%

8.0%

10.0%

ROIC

4.5%

5.5%

8.0%

Operating profit margin

3.7%

4.4%

6.0%

Capital investment (general investment)
Research and development expenditure¥60.0 billion over four years (of which ¥20.0 billion is growth investment)(FY2021 results: ¥10.7 billion, FY2022 forecast: ¥16.5 billion)¥40.0 billion over four years(FY2021 results: ¥9.8 billion, FY2022 forecast: ¥11.0 billion)

Consolidated dividend payout ratio

33.7%

Stable level of 30%

Field Service Engineering BusinessGroup

Real Estate

Others (including elimination)

Total

Orders

55.8

55.0

59.5

Net sales

52.3

55.5

57.5

Operating income

(1.8)

(0.8)

1.3

Orders

95.5

83.5

95.0

Net sales

94.7

87.4

94.6

Operating income

6.1

4.0

6.1

Orders

65.3

88.0

97.0

Net sales

63.8

86.1

96.0

Operating income

(0.2)

3.6

7.1

Orders

41.8

41.0

42.0

Net sales

39.5

41.6

41.6

Operating income

5.9

6.0

6.0

Orders

3.2

3.2

3.2

Net sales

3.2

3.2

3.2

Operating income

1.1

1.1

1.1

Orders

(2.2)

(0.7)

3.3

Net sales

1.4

(3.8)

7.1

Operating income

(1.5)

(1.9)

(3.6)

Orders

259.6

270.0

300.0

Net sales

255.0

270.0

300.0

9.4

12.0

18.0

Operating income

69

MEIDENSHA REPORT 2022

Applications for Patents or Design Registration/Patents or Registered
Designs Held
● Held in Japan ● Held overseas ● Application in Japan ● Application overseas
1,800■ Net sales (consolidated) ■ Research and development expenditure (consolidated)(In billion yen)

(In billion yen)
30

300.0

100.0

¥120.0 billion as of March 31, 2025

Mobility & Electrical Components
Business GroupIn intellectual property activities, we are expanding
strategic initiatives to promote identification and rights
acquisition regarding technologies for which we havemarket dominance, as well as focusing on approaches that
identify the direction of development in which we should
engage, through analysis and internal sharing of intellectual
property information.
As for intellectual property activities that contributeto sustainability management, we promote co-creation
with private companies and public institutions aroundthe world by utilizing intellectual property rights related toenvironmental technologies, thereby promoting businessexploration and innovation creation that contribute to
the development of new products and new businesses.
By promoting such intellectual property activities, we will
accelerate the spread of environmental technologies, andcontribute to solving social issues such as the SDGs, andrealizing our sustainability management.

(Number)

Research and Development Expenditure

245.0

Contribution to Sustainability Through Intellectual
Property Activities

255.7
231.2

255.0

1,350
900

20

450
0

101.9

Public, Industrial & Commercial
Sector Business Group

Under the current “Medium-term Management Plan 2024”,
we have been promoting research and development tosupport ambidexterity management supported by the twopillars of “ongoing enhancement of product competitivenessfor existing businesses” and “new technology and new
product creation for corporate growth.”
FY2021 was the first fiscal year of operation, and we
focused on expanding power transmission and distribution
products that do not use SF₆ gas, for which business
opportunities are increasing due to heightened global
environmental awareness, advancing drive units that support
electrification of vehicles, and creation of new products andsystems that utilize digital technologies such as IoT and AI.
At the same time, in the development of motors forelectric vehicles, we shortened development periods
by incorporating model-based development, in order tokeep up with the changes and demands of the constantly
accelerating market. Additionally, the newly established
Advanced Technology Research Laboratories, haveachieved results such as establishing new control technologythat achieves increased efficiency, high frequency, low noise,and low vibration for high-capacity motor drive systems.

200.0

Net worthPower Infrastructures BusinessGroup

Results of Research and Development in FY2021

0

9.45

2018

10.46

2019

9.46

2020

9.86

2021

(FY)

1,695
1,615

(Number)

1,741

195

223

828
766

67

67
2019

2020

300
225

191
150

830
109

75

2021

(FY)

0

10

0

Future Initiatives and Priority Sectors
For initiatives from FY2022 onwards, we will aim to produce
results that will further improve our position in technologicalfields and product categories where we have a competitiveedge, while acquiring innovation and foresight capabilities
regarding the changing business environment, andpromote development activities swiftly.
In existing fields, we will conduct development thatfurther extends Meidensha’s strengths, in areas such as
expanding our lineup of environmental power transmission
and distribution products, engaging in advanced
development products of EV drive units, and miniaturizationand efficiency of components for semiconductor
manufacturing equipment.
With regard to the creation of new technologies andnew products, we will accelerate promotion of innovation
themes, and we will aim to acquire new future coretechnologies by strengthening collaboration with partners
such as universities and research institutions.

Participation in the WIPO GREEN
Environmental Technology Platform
In March 2022, we participated as a partner company
in WIPO GREEN, an environmental technology
platform operated by the World Intellectual Property
Organization of the United Nations.
WIPO GREEN is an online platform to connect
intellectual property owners with prospective users
to promote transfer of environmental technology, andwe registered our SF₆ gas-free eco-tank-type vacuum
circuit breaker as an environmental technology.
We will continue to contribute to the creation ofa sustainable society, such as achieving a carbonfree society and adaptation to climate change,by spreading information about environmental
technologies worldwide through WIPO GREEN, andpromoting the use of our environmental technologies.

MEIDENSHA REPORT 2022

70

Corporate Information

Overview by Business Segment Overview by Business Segment in FY2021

Financial / Non-Financial Highlights* FY2019 results are for reference if the segment classifications for FY2020 onward are applied.
Net sales (millions of yen)

Operating income (millions of yen)

Consolidated basis
FY2018FY2019FY2020

FY202120.2%

241,832

245,033

255,748

231,254

255,046

Operating income (millions of yen)

11,381

10,336

12,725

8,384

9,468

Ordinary income (millions of yen)

9,992

10,128

11,481

8,465

10,206

Net income attributable to owners of parent (millions of yen)

7,056

7,653

8,208

7,303

6,733

Overseas net sales (millions of yen)

74,15471,72570,41048,42065,650

30.7

29.3

27.5

20.9

25.7

Net assets (millions of yen)

264,457

265,586

270,410279,059

290,899

Total assets (millions of yen)

81,22984,497

90,117

99,736

105,421

2019

2020

2021 (FY)

2019

(309)
2020

Overseas sales ratio (%)(1,899)Net sales
composition
ratio

(380)

Net sales
composition
ratio

Net sales in the segment increased 13.8% year on year to ¥52.3 billion, andoperating income deteriorated by ¥1.59 billion to negative ¥1.899 billion.
With regard to the Power Generation and Power T&D sector, which ismainly located overseas, although revenue increased due to recovery of
demand in Singapore and full-scale operation of the U.S. subsidiary, werecorded decreased profit due to reduced profitability in some overseas
locations, such as Vietnam and Germany, against the backdrop of the
impact of the COVID-19 pandemic, etc. Furthermore, with regard to thePower & Energy sector, which is mainly located in Japan, although net
sales exceeded the previous fiscal year due to steady progress of largescale projects, as previously reported, we recorded decreased profit due
to higher depreciation expenses as a result of rebuilding wind farms, etc.

52,300FY2017

Net sales (millions of yen)
45,977

Financial indicators

48,680Power Infrastructure Business

2021 (FY)

1,920.01

2,127.74

2,247.49

168.68180.91160.98148.4335.5

Equity ratio (%)

30.3

31.5

32.2

34.6

35.1

Cash flows from operating activities (millions of yen)

17,975

14,365

10,416

14,601

11,389Cash flows from investing activities (millions of yen)

(7,582)(8,074)(13,700)(13,117)(7,503)

Cash flows from financing activities (millions of yen)

(11,230)(3,101)

3,735(1,402)(4,266)

ROE (%)

9.2

9.3

9.6

8.0

6.8

ROIC (Operating-income-based) (%)

6.6

5.9

6.9

4.2

4.5

Dividend payout ratio (%)

28.9

26.7

27.6

29.8

33.7

Total shareholder return (%)

105.1

81.4

89.2

131.4

140.7

(Comparative indicator: TOPIX dividend included)

115.9

110.0

99.6

141.5

144.3

Net
Net sales
sales
composition
composition
ratio
ratio

2019

2020

2021 (FY)

6,103
2019

3,332

Net sales
NetsalessalesNetcomposition
composition
Netratio
sales
composition
ratio
composition
ratio
ratio

Net sales in the segment increased 6.8% year on year to ¥94.701 billion,
and operating income increased by ¥2.771 billion to ¥6.103 billion.
Although we incurred great downward pressure from reduced demandand delayed customer plans in Japan and overseas due to the impactof the COVID-19 pandemic, centered around the Railway business,this was mainly made up for by the Water Infrastructure segment, forwhich orders remained strong in Japan, and the Social Infrastructure
Systems Business, which saw recovery in profitability centered around
local subsidiaries in Southeast Asia, leading to net sales and profit greatly
exceeding the previous fiscal year.

4,214

Net sales
composition
composition%ratioratio

94,701

1,845.21

155.52

88,645

1,768.27

Net income per share (yen)98,181

Net assets per share (yen)Public,Industrial & Commercial Sector BusinessNet sales

2020

2021 (FY)Net sales
Net salesNet
sales
composition
composition
Netratio
sales
composition
ratio
composition
ratio
ratio

2019

2020

2021 (FY)

2019

2020

(248)

3,093

Notes 1. On October 1, 2018, we conducted a reverse stock split at a ratio of one share for every five shares of common stock. Thus, we calculated net assets per share and net income
per share on the premise that said reverse stock split had been conducted at the start of FY2015.
2. We have used TOPIX dividend included, which is adopted by more companies, for the comparative indicator for total shareholder return, for the purpose of facilitating easycomparison.
(132)

Net
Net sales
sales
composition
composition
ratio
ratio

63,817ratio

Net sales in the segment increased 21.8% year on year to ¥63.817 billion,
and operating income deteriorated by ¥116 million to negative ¥248 million.
In the Electronics Products sector, which was benefited by strong
semiconductor manufacturing, demand remained at a high level throughout
the year, and revenue and profit increased, while in the EV Business, net
sales and profit both exceeded those of the previous fiscal year due tocommencing delivery of new models, etc. However, the Mobility T&S
Business, for which conditions remained harsh, recorded a significant
loss, and profit also declined for the Motor Drive Solutions Business due toincreased cost of materials and parts, etc.

52,401

Net sales
composition
Net
sales

composition
Net sales
24.0composition% ratio
ratio
composition
ratio

65,885

Mobility& Electrical Components BusinessNet sales

2021 (FY)Net sales
Net sales
composition
Net
composition
Netsales
sales
ratio
composition
ratio
composition
ratio
ratio

5,937

5,780

5,687

39,541

14.9

Net sales in the segment increased 2.0% year on year to ¥39.541 billion,
and operating income rose by ¥157 million to ¥5.937 billion.
Demand recovered in sectors where orders were postponed, etc., in theprevious fiscal year due to the impact of the COVID-19 pandemic, andboth net sales and profit further exceeded the results of the previous
fiscal year, which were the highest ever, due to strong performance bybusinesses involved with semiconductor manufacturing equipment.

38,776

Net sales
composition%ratio38,324

Field Service Engineering Business

2020

2021 (FY)

2019

2020

2021 (FY)

1,153

1,349

1,353

3,443

3,206

Net sales
Net sales
composition
Net
composition
Netsales
sales
ratio
composition
ratio
composition
ratio
ratio

3,481

Net salesRealEstate Businesscomposition
ratio

We are engaged in the held real estate leasing business, centering on theoffice and commercial building ThinkPark Tower (Osaki, Shinagawa-ku,
Tokyo). Net sales in the segment totaled ¥3.206 billion, a 6.9% decline
from the level achieved in the previous fiscal year, and operating income
decreased by ¥195 million to ¥1.153 billion, as a result of the sale ofrental assets held in Kiyosu, Aichi Prefecture, in the previous fiscal year.

71

2020

2021 (FY)2019

MEIDENSHA REPORT 2022

R&D expenses (millions of yen)

9,402

9,458

10,467

9,468

9,869

Capital expenditure (millions of yen)

7,584

7,895

16,042

15,575

10,748

Number of employees

8,995

9,297

9,599

9,647

9,923

Total actual annual working hours (hours/year/employee)

2,002

2,019

1,978

1,980

1,970

Percentage of female employees in executive positions (%)

3.92

3.88

3.70

3.95

4.37

Lost time accidents rate

0.29

0.99

0.60

0.76

0.44

34,27435,17535,02333,67832,0352020

2021 (FY)2021 (FY)

2019

104

857

2020

135

16,8882019

20202021 (FY)FY2019FY2020

FY2021CO2 emissions from energy sources (Overseas) (t-CO2)

9,123

9,007

8,656

11,34012,264

Greenhouse gas emissions from business activities (Scope 1 and 2)(Consolidated) [t-CO2]

65,96556,07653,47353,254

48,986

Greenhouse gas emissions from the value chain (Scope 3)(Consolidated) [t-CO2]

ーー

7,279,722

6,852,531

6,849,240

Greenhouse gas emissions from product use (Scope 3, category 11) (Consolidated) [t-CO2]

ーー

6,370,000

6,050,000

5,922,573

Reduction of CO2 emissions caused by products (kt- CO2)

733

841

848

990

736

Amount of waste generated (Japan) (kt)

7.1

7.8

6.4

10.0

12.8

99.1

99.3

99.5

94.6

94.7

Water consumption (Japan) (thousand m )

1,203

1,085

1,768

1,490

1,834

Wastewater (Japan) (thousand m3)

1,914

2,113

2,206

2,288

2,258

28

38

60

35

27

3

Social contribution spending (millions of yen)
16,567

Net sales in the segment increased 1.9% year on year to ¥16.888 billion,
and operating income fell by ¥31 million to ¥104 million.
Since the previous fiscal year, business conditions have worsened dueto the impact of the COVID-19 pandemic, and businesses that remained
impacted by downward pressure on earnings were unable to improve
results, in spite of signs of improvement for some areas in the current
fiscal year.

19,844

Net sales
Net sales
composition
composition
Netratio
sales
ratio
composition
ratio

FY2018Recycling rate (Japan) (%)
2019

Net sales
composition
Other
Business
ratio

4.1%

FY2017CO2 emissions from energy sources (Japan) (t-CO2)

2019

1.2%

Non-financial indicators

Notes 1. Figures for employee numbers exclude those employees on temporary contracts. 2. Total actual annual working hours are the actual working hours calculated by subtracting
leave hours from the sum of official working hours and overtime hours (averaged per employee). 3. The percentage of female employees in executive positions refers to thepercentage calculated by dividing the number of female employees in executive positions by the total number of executive positions. 4. Japanese emissions: Fuel oil and fuel gas
use the Table of Calculation Methods and Emission Factors for the Calculation, Reporting, and Publication System published by the Ministry of the Environment. Electricity uses the
Table of Emission Factors for Individual Power Companies published by the Ministry of the Environment. 5. Overseas emissions: Fuel oil and fuel gas use the emission factors foreach country published by the GHG Protocol. Electricity uses average factors per country from 2010 to 2012 published by the International Energy Agency (IEA).
6. Reduction of CO2 emissions caused by products is the expected reduction of such emissions caused by products sold. 7. Measurement points for water consumption werechanged in FY2019 in order to increase precision, so there is no continuity with FY2018 and before. 8. Social contribution spending includes donations and sponsorship funding.

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Corporate Information

Outline of the Meiden Group
Corporate Data as of March 31, 2022
Corporate Name
EstablishedCountry/
RegionCapitalMEIDENSHA CORPORATION

Consolidated Sales

June 1, 1917 (Since December 22, 1897)

Representative Director & President & Executive Officer Takeshi Miida
Head Office¥17,070 million

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

Hong Kong¥255,046 million

Consolidated Number of Employees
Consolidated Subsidiaries

42 (22 in Japan, 20 overseas)

Sale of switchboards and engineering tasks

MEIDEN INDIA PVT. LTD.*2

Import and sale of Meiden Group products, engineering tasks, construction, after-sale service

MEIDEN T&D (INDIA) LIMITED

Manufacture and sale of transformers and peripheral businesses

Indonesia

PT. MEIDEN ENGINEERING INDONESIA

Sale and design of electrical equipment, installation, construction, and engineering tasks

Korea

MEIDEN KOREA CO., LTD.*2

Sale, installation, testing of dynamometer products, servicing and maintenance, and import and export operations

MEIDEN MALAYSIA SDN. BHD.

Electrical construction, engineering tasks, EPC business, sale of Meiden Group products and systems, and servicing &maintenance

MEIDEN METAL ENGINEERING SDN. BHD.

Manufacture and sale of transformer housing and radiators, etc.

MEIDEN ASIA PTE. LTD.

ASEAN regional presiding company

MEIDEN SINGAPORE PTE. LTD.

Manufacture and sale of transformers, switchboards, and circuit breakers, assembly and sale of ceramic flatsheet
membrane unit, and engineering tasks

THAI MEIDENSHA CO., LTD.

Electrical construction, mechanical construction, engineering, EPC business, and maintenance

MEIDEN ELECTRIC (THAILAND) LTD.

Manufacture and sale of switchboards and automatic guided vehicles (AGVs)

VIETSTAR MEIDEN CORPORATION

Manufacture and sale of low and medium-voltage switchgear

MEIDEN EUROPE GmbH

Sale of electrical equipment

TRIDELTA MEIDENSHA GmbH

Manufacture and sale of lightning arresters for electrical and railway, and peripherals for lightning arresters

MEIDEN AMERICA, INC.

System engineering and after-sale service for dynamometer products, and sale of component products

MEIDEN AMERICA SWITCHGEAR, INC.

Manufacture and sale of vacuum circuit breakers, and sale of vacuum interrupters

Malaysia

Main Subsidiary Companies (as of April 1, 2022)
Country/
RegionCompany NameBusiness Entity

Business Entity

MEIDEN PACIFIC (CHINA) LIMITED

India

9,923

Company Name

Singapore

M WINDS CO., LTD.

Development, design, manufacture, testing, and consulting for wind power generation systems

M WINDS HACHIRYU CO., LTD.

Wind power generation business

NOTO COMMUNITY WIND POWER CO., LTD.

Wind power generation business

EAML Engineering CO.,LTD.

Design, manufacture, sale, and repair of hydroelectric generators and peripherals, hydroelectric generation business

MEIDEN TECHNO SYSTEMS CO., LTD.

Maintenance, inspection, renovation and refurbishment of transformers and switchgear, manufacture of products andparts for transformers and switchgear, installation of transformers and switchgear, and worker dispatch business

MEIDEN FACILITY SERVICE CORPORATION

Upkeep, operation, maintenance, etc., of facilities etc.

North
America

SADO MEIDEN SERVICE CORPORATION

Upkeep, operation, maintenance, etc., of facilities etc. in Sado region*1 Special subsidiaries *2 Non-consolidated subsidiaries

MEIDEN AQUA BUSINESS COMPANY

Maintenance and operation management for water, sewerage and industrial water treatment facilities, industrial
wastewater treatment facilities, and general and industrial waste treatment facilities

Thailand
VietnamGermany

MEIDEN SYSTEM MANUFACTURING CORPORATION Manufacture and sale of switchboards, control panels, and their components

Japan

China

MEIDEN PLANT SYSTEMS CORPORATION

Design and contracting for electricity and building construction, and manufacture, repair, refurbishment of electricalequipment, etc.

MEIDEN KIDEN KOGYO CO., LTD.

Repair and overhaul of eddy current dynamometers, mechatronic equipment, motors, generators, and dynamometers,
and high-precision machining

KOFU MEIDENSHA ELECTRIC MFG. CO.,LTD.

Manufacture and sale of PM motors, elevator motors, industrial vehicle motors, brushless motors, and induction motors

MEIDEN ENGINEERING CORPORATION

Manufacture, sale, installation, and wiring of electrical equipment, machinery, tools, and devices, maintenance andinspection services, refurbishment, and repair

CHUO ENTERPRICE CORPORATION

All tasks relating to management and operation of facilities, maintenance and safety inspections, sanitation, cleaning,
security, construction, energy-conservation measures, and other building management

Share data as of March 31, 2022
Stock Listing Tokyo Stock Exchange, Nagoya Stock Exchange

Distributionof shares
by shareholder

Total number of authorized shares 115,200,000

MEIDEN CHEMICAL CO., LTD.

Manufacture of electrical equipment mold products, and insulating varnish, resin, etc.

Total number of issued shares 45,527,540(Including treasury shares of 158,652)

HOKUTO DENKO CORPORATION

Manufacture and sale of electrochemical measurement devices, and manufacture of water quality measurement devices

Number of shareholders 14,655

MEIDEN NANOPROCESS INNOVATIONS, INC.

Development, design, manufacture, and sale of pure ozone generators and thin film deposition equipment

MEIDEN KOHSAN CO., LTD.

Sale of goods and materials, insurance agency, and real estate business

MEIDEN MASTER PARTNERS CORPORATION

Worker dispatch business

MEIDEN UNIVERSAL SERVICE LTD.*1

Cleaning, security for buildings, structures, and incidental facilities, and greening and maintenance of land

MEIDEN SYSTEM SOLUTION CORPORATION

Financial institutions

44.43%

Securities companies

1.26%

Business companies

20.32%

Overseas investors

15.99%

Individuals

17.65%

Other

0.35%

Major Shareholders
Names of Shareholders

Number of Shares Held (shares)

Shareholding Ratio (%)

Software development, design, production, sale, and rental, and maintenance and management of computer systems
and networks

The Master Trust Bank of Japan, Ltd. (account in trust)

7,831,600

17.26

MEIDEN SHOJI CO., LTD.

Sale of electrical and electronic equipment products

Custody Bank of Japan, Ltd. (account in trust)

3,659,000

8.06

MEIDEN ZHENGZHOU ELECTRIC CO., LTD.

Manufacture and sale of lightning arresters for electric power and electrical railways, zinc oxide blocks for lighting
arresters, and accessories for lightning arresters

Sumitomo Electric Industries, Ltd.

2,631,385

5.80

MEIDENSHA (SHANGHAI) CORPORATEMANAGEMENT CO., LTD.

Chinese regional presiding company (Management consulting services for affiliates), sale of electrical equipment, importand export operations, procurement, maintenance, and after-sale service

Sumitomo Mitsui Banking Corporation

2,241,835

4.94

MEIDEN HANGZHOU DRIVE SYSTEMS CO., LTD.

Manufacture and sale of elevator motors and traction machines, inverters for synthetic fiber machine, and automatedguided vehicles (AGV)

NEC Corporation

1,746,150

3.85

SHANGHAI MEIDENSHA CHANGCHENGSWITCHGEAR CO., LTD

Manufacture and sale of medium-voltage cubicle-type gas insulated switchgear and vacuum circuit breakers
Manufacture and sale of high and low voltage panels

Sumitomo Mitsui Trust Bank, Limited

1,500,000

3.31

Sumitomo Life Insurance Company

1,061,400

2.34

MEIDEN (HANGZHOU) DRIVE TECHNOLOGY CO.,LTD.

Manufacture and sale of motors and inverters for EVs

Meidensha Employees Stock Ownership Group

1,041,371

2.30

Mei-ei Ownership Group645,744

1.42

Mei-yu Ownership Group635,206

1.40* Note: The shareholding ratio excludes treasury shares.

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