MEIDENSHA REPORT
2017

Meidensha celebrates its 120th anniversary
on December 22, 2017.

CONTENTS
ProfileBasic information about the Meiden
Group, including our Corporate
Philosophy, and a business overview

Meidensha was founded in 1897 as a developer of electric motors

Meiden Group Corporate Philosophy P.3
Meiden Group Businesses
P.5
Financial / Non-Financial Highlights
P.7

that supported Japan’s growth through electric technology.
The belief of our founder, Hosui Shigemune,

120th Anniversary Special Issue

remains a part of our core spirit today:

Representative Director and Chairman
Junzo Inamura looks back on the pastten years and shares his vision for thecompany in light of his experiences.

“We must work with sincerity because in the end,
it will benefit not only customers, but all of society”.
His words continue to drive our development

Interview with the Chairman
Corporate History
120th Anniversary Projectsof technologies and products to meet emerging needs.
We will celebrate our 120th anniversary on December 22, 2017

Strategy

and continue supporting society through social infrastructure development,

Representative Director and President
Yuji Hamasaki talks about the progressof our growth strategy and policies going
forward.

delivering advances to elevate lifestyles throughout the world.

Message from Management

Energizing society.

MElDEN — Building advanced infrastructures around the world.

Guidelines Used as References– GRI “Sustainability Reporting Guidelines Version 4”– Ministry of the Environment “Environmental Reporting Guidelines(Fiscal Year 2012 Version)”

Reporting Period
This report mainly covers initiatives taken in fiscal 2016
(April 1, 2016 - March 31, 2017)

Scope of Report
The report mainly covers initiatives of Meidensha Corporation (“Meiden”) and its Group
companies. Human resources data applies to Group companies in Japan, whileenvironmental reporting data applies to Meiden and its 38 major Group companies (18 in
Japan and 20 overseas).

Publication
Editorial Policy
The Meiden Group aspires toward management in which business and CSR
activities are integrated in order to support the social infrastructure essential
to people’s lives, and lead the way to a brighter tomorrow. This report was
prepared with the goal of sharing our consistent approach to creating value
over the medium and long term and realizing a more prosperous futuresociety.
We also use our website to disseminate wide-ranging, detailed
information on the company in a timely manner.
Corporate Data
Information for Shareholders/Investors
CSR/Environmental Activities
120th Anniversary Special Website(until Dec. 2017)

MEIDENSHA REPORT 2017

P.15

Overview by Business Segment

The power of MEIDEN.

1

P.9
P.11
P.13

http://www.meidensha.com
http://www.meidensha.com/ir
http://www.meidensha.com/csr
http://www.meidensha.com/120th– Publication of this report: September 2017
– Next scheduled publication: August 2018

Inquiries about This Report
Public Relations Section,
General Affairs & Public
Relations Division

ThinkPark Tower, 2-1-1, Osaki, Shinagawa-ku, Tokyo
141-6029 Japan
TEL: 81-3-6420-8100 FAX: 81-3-5745-3027
Website: http://www.meidensha.com

Disclaimer
In addition to past and current facts about the Meiden Group, this report contains
forecasts for the future based on plans, outlooks and business policies and strategies in
effect at the time of publication. These forecasts are our assumptions and judgments asbased 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.

We introduce the initiatives and resultsin each business segment, based on our
Medium-term Management Plan.
At a Glance

P.19

Creating Value through Our
Business
We introduce our value creation process
based on our corporate philosophy, as
well as examples of the success of our
Medium-term Management Plan “V120.”
The Meiden Group Value Creation
Process
Positive Results of the Medium-termManagement Plan V120

P.21
P.23

Foundation for Creating Value
How we practice environmental
management and human resources
development to strengthen ourcompetitiveness
ESG at the Meiden Group
Environment
Society
Corporate Governance

P.29
P.31
P.35
P.39

Outline of the Meiden Group

P.45

MEIDENSHA REPORT 20172

Profile

Meiden Group Corporate Philosophy

Meiden Group Corporate Philosophy
Corporate Mission

Value Provision

It defines the raison d’être and corporate mission

It defines the unique value provision and core competence

Illuminating amore affluent
tomorrow

For customer
peace of mind andsatisfaction

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

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 byproviding high-quality, socially responsible products and services.

Build Loyalty

MEIDEN CYCLE

1

2

3

4

In order to realize our Group Corporate Philosophy, we must identify the direction for each

CSR Definition

Corporate Code of
Conduct

President’s CSR Policy

MEIDEN CYCLE

losing their way. To enable us to do so, we have made these five actions our watchwords.

Under the Meiden Group’s
definition of CSR, “Each andevery employee shall work torealize the Group’s corporate
philosophy so that the Meiden
Group is needed by society.”

This code defines compliance in
conducting our CSR programs
and activities.

This policy sets forth the policyof our CSR programs andactivities in the medium term.
The Policy asks each Group
employee to implement CSR
programs and activities in their
daily work. We will draw up
specifications that reflect thegiven business climate and CSR
challenges under the current
stage of the Medium-termManagement Plan.

MEIDEN CYCLE shows theguiding spirits shared by all
members of the Group in
realizing the Group’s corporate
philosophy.

individual employee to aim towards and provide signposts to help them proceed without
The actions are mutually linked, with one action calling forth the next, creating a cycle of

The Meiden Group Corporate Philosophy seeks to delight customers by offering high quality products and services to help

action and growth. Based on this image, we call this the Meiden Cycle.
By sharing and practicing the Meiden Cycle as the ethos underlying our actions, weseek to maximize the growth cycle for each of our employees.

Corporate Slogan

solve problems. It is also part of our philosophy that through these business activities, we aim to fulfill our corporate social

To commemorate our 120th anniversary, last July we formulated the new corporate slogan

responsibility (CSR) by proactively solving global environmental problems and other social issues and helping achieve a more

“Quality connecting the next.” “Quality” refers not just to the quality of our products andaffluent future. The Corporate Philosophy expresses our wish to continually take on these challenges.

services, but to the “people” and “technology”. These two attributes make Meiden’sThis is our legacy from Hosui Shigemune, who founded our company as a local factory to manufacture and repair
electrical machinery. His will remains our common sense of values, even as these have evolved with the times, and remains at
the core of all our business activities. Staying true to this Corporate Philosophy, the Meiden Group aims to grow with society
and be indispensable to it. With that as our goal, we continually take the challenge of creating new technologies and value.

unique quality, and create new connections with the future. Making connections with ourcustomers, 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 ournever-changing mission.

3

MEIDENSHA REPORT 2017

MEIDENSHA REPORT 2017

4

Profile

Meiden Group Businesses

A number ofconsolidated employees

Group consolidated subsidiaries

38

8,474

In JapanA number of employee breakdown by region
Japan

18

Outside Japan

20

82.8%

Asia 15.6%
Other regions

1.6%

Outline of
Meiden Group(Fiscal 2016)

Consolidated net sales

220.1

billions of yen

Sales breakdown by region
Japan
Asia
Other regions

73.3%
19.2%
7.5%

Six Meiden Electrical Technologies that Support Our Society

Meiden Behind Every Electricity Scene
Make

5

Send

ChangeMoveControl

Care (Protect)

Our products range from large turbine generators,

Electricity generated at each power station

Meiden power electronics technology changes or

Meiden motors and inverters, automated guided

Meiden controls distributed power sources andMeiden not only manufactures and sells electricalphotovoltaic power generation and hydroelectricgoes through transmission lines, substations,converts electricity from AC to DC, or vice versa,

vehicle (AGV) systems help improve efficiency atheat source facilities to minimize the total energy

equipment and facilities, but also provides a one-

generating facilities that use renewable energy

and distribution lines. As it goes, the voltage isand controls this conversion of power. Our power

production sites. Meiden dynamometer systems

costs on electricity and gas. The Meiden Smartstop service for their installation, maintenance andsources, to emergency power generating facilities

adjusted at each stage before being delivered

electronics technology has evolved, meeting thehelp develop electric and hybrid-electric vehicle

Energy Management System (EMS) uses ICT

upgrading, as well as operation and maintenancethat play an important role when disasters

to factories, buildings and our homes. Meiden

needs of the time for energy saving and improved

drive systems that are eco-friendly. Meiden

technology to support new energy management.

services. Meiden guards the integrity of facilities

occur. Meiden supplies a wide range of powertransformers change (transform) voltage, while

reliability. The technology is now utilized in various

elevator drive systems help elevators provide

facilities, from large-capacity facilities for power

Meiden breakers cut off the large amounts offields that require electric power, including various

powerful, smooth and comfortable ride quality.

stations to small-to-medium capacity facilities for

current that occur in accidents. These Meidenkinds of power source equipment, railway

Meiden “move” technology, together with ourcommercial complexes and mobile power supply

products are essential for safe and reliablefacilities, production facilities, electric vehicles,

eco-friendly technology, paves the way forfacilities.

electricity transmission and distribution.

renewable energy systems and battery systems.

quality-filled lives.

MEIDENSHA REPORT 2017with our reliable technical expertise.

MEIDENSHA REPORT 2017

6

Profile

Financial / Non-Financial Highlights

Meidensha Corporation and Consolidated Subsidiaries

Financial indicators

FY2012FY2013

FY2014FY2015FY2016

Non-financial indicators

FY2012FY2013

FY2014FY2015FY2016

Net sales (millions of yen)

197,733

216,176

230,299

237,404

220,141

Number of consolidated subsidiaries

43

42

39

39

38

Operating income (millions of yen)

7,881

9,546

9,997

10,517

8,849

Japan

26

25

21

19

18

Ordinary income (millions of yen)

5,946

7,790

10,502

10,595

8,209

Outside Japan

17

17

18

20

20

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

4,024

6,580

6,868

6,962

5,743

R&D costs (millions of yen)

9,680

9,090

10,261

9,970

9,462

Overseas net sales (millions of yen)

37,97645,70455,86464,08258,730Capital expenditure (millions of yen)

8,882

9,249

8,887

8,314

7,355

Overseas sales ratio (%)

19.2

21.1

24.3

27.0

26.7

Number of employees

7,920

8,047

8,173

8,408

8,474

Net assets (millions of yen)

224,623

248,379

255,519

255,024

247,646

Of which, local staff

1,086

1,096

1,147

1,499

1,354

Total assets (millions of yen)

58,07760,60767,405

68,771

74,312

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

2,001

2,090

2,078

2,083

2,016

Net assets per share (yen)251.64262.50291.35297.64322.80Percentage of female employees in executive
positions (%)

-

-

5.5

6.4

6.8

Net income per share (yen)

17.74

29.00

30.27

30.68

25.31

Rate of lost-worktime injuries

-

0.14

0.59

0.44

0.96

Return on equity (%)

25.4

24.0

25.9

26.5

29.6

CO2 emissions (Japan) (kt-CO2)

40

42

41

41

39

Cash flows from operating activities(millions of yen)

9,305

18,239

11,165

22,597

11,840

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

235

360

587

870

800

Cash flows from investing activities(millions of yen)

(7,135)(11,316)(8,772)(10,530)(12,031)

CSR spending (millions of yen)

32

26

22

19

32

Cash flows from financing activities(millions of yen)

(7,749)(3,873)(5,282)(5,847)(3,767)

ROE (%)

7.4

11.3

10.9

10.4

8.2

Operating-income-based ROA (%)

3.6

4.0

4.0

4.1

3.5

Dividend payout ratio (%)

28.2

20.7

23.1

26.1

31.6

Notes: 3. Figures for employee numbers exclude those employees on temporary contracts.
4. 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).
5. Percentage of female employees in executive positions is the ratio of female employees in executive positions to the total number of female employees.
6. The CO2 emission coefficients suggested by the Electric Power Council for a Low-Carbon Society (ELCS) were used as the CO2 emission coefficient for electricity.
The adjusted factor for fiscal 2015 was used for fiscal 2016, while that for the respective fiscal year was used for those fiscal years up to fiscal 2015.
7. With the dissolution of the joint venture Japan AE Power Systems Corporation, the Japan AE Power Systems Corporation Numazu Works (AE Power Numazu) was
incorporated into the Meiden Group as Meiden T&D Corporation in April 2012.
8. Reduction of CO2 emissions caused by products is the expected reduction of such emissions caused by products sold.
9. CSR spending includes donations and sponsorship funding.

Notes: 1. Operating income for fiscal 2014 has been retroactively changed due to a change in how this number is calculated. (Starting in fiscal 2015, consolidated Group
expenses associated with employees on loan are included in as “operating expenses (sales costs and selling, general and administrative expenses)” instead of“non-operating expenses.”)
2. Starting in FY2015, we show “net income attributable to owners of parent,” instead of “net income.”

Net sales (millions of yen)Overseas net sales (millions of yen)
230,299 237,404
216,176
197,733

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

220,141
9,546
7,881
6,580

9,997
6,868

10,517
8,849
6,962

5,743

R&D costs (millions of yen)

Net assets (millions of yen)
Return on equity (%)

224,62325.4

248,37924.0

255,519

25.9

9,680
255,02426.5

247,646

10,261
9,090

Capital expenditure (millions of yen)

9,970

9,462

8,882

9,249

8,887

Number of employees
Number of local staff

8,314

7,920

8,047

8,173

1,086

1,096

1,147

2012

2013

2014

8,408

8,474

1,499

1,354

2015

FY2016

7,355

29.6

4,024
37,97645,70455,86464,08258,730

2012

2013

2014

2015

FY2016

Net income per share (yen)

29.00

30.27

2012

2015

2014

MEIDENSHA REPORT 2017

2012

2013

2014

2015

FY2016

Dividend payout ratio (%)

2012

2013

2014

2015

FY2016Rate of lost-worktime injuries

2012

2013

2014

2015

FY2016CO2 emissions (Japan) (kt-CO2)

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

870
11.3

10.9

2015

FY2016

0.96

10.4
8.2

7.4

2013

FY2016

30.68

17.74

7

2014

ROE (%)ROA (%)

25.31

2012

2013

31.6

28.2
20.7

3.6

4.0

4.0

4.1

3.5

2012

2013

2014

2015

FY2016

23.1

0.59

26.1

40

42

41

41

39

2013

2014

2015

FY2016

2012

2013

587

0.44

360

0.14

2012

800

235

2014

2015

FY2016

2012

2013

2014

2015

FY2016

2012

2013

2014

2015

FY2016

MEIDENSHA REPORT 20178

120th Anniversary Special Issue

Interview with the Chairman

Meiden spirit of “for society and people” isa testament to our survival over 120 years.

To remain a company trusted andneeded by society:
Determination inherited from our founder and hopes for the future

Meiden has faced many tests during the ten years or so since I
was appointed to the President in 2008. Shortly after I assumed
my duties as President, there was the 2008 global financial crisis
triggered by the bankruptcy of Lehman Brothers. In 2011, just as
we were starting to see signs of an upturn in what we expected
would be a V-shaped recovery, the Great East Japan Earthquake
occurred, followed by severe flooding in Thailand. While these
ups and downs continued throughout my time at the helm of
management, the Company steadily overcame them thanks tothe support of its stakeholders and the unified efforts, daring, andingenuity of its employees.
There is no doubt that the Company has met with such

Junzo Inamura
Representative Director & Chairman

hardships countless times throughout its more-than-century-longhistory. We cannot compare the challenges we have faced overthe course of our history with those of the last ten years. However,
it is thanks to our founding spirit of “For society and people,”
passed down unbroken from our predecessors, that the Company
has survived the changing times and overcome many challenges.
Looking back on the past ten years reaffirms this conviction for me.
In the Great East Japan Earthquake, many of our customers
involved in electricity, water, railways, and other lifelines suffereddamages. As a company responsible for social infrastructure, we
recognized restoring civilian life to normal by aiding the prompt
restoration of our customers’ operations to be our obligation tosociety and our most important mission, and so we mobilized
all of the Group’s resources to come to our customers’ aid. I
myself went to Sendai, one of the disaster-stricken areas, where
employees were already working to restore customers’ facilities
and equipment the day after the Earthquake, carrying oxygentanks on their backs to keep from suffocating under fallen earth or
rubble. Similarly, during the floods in Thailand, employees toiled in

A company’s continued survival depends
on offering products and services that
contribute to society and being truly sociallyindispensable.
Since our founding in 1897, we have doggedly pursued
manufacturing excellence while contributing to the sustainablegrowth of society by creating a variety of technologies, products,
and services, focusing mainly on the field of social infrastructure in
Japan. Sometimes we are even asked to repair 50- or 80-year-old
equipment. Handling and continuing to support various systems
all over Japan, I believe that these are requests that only we canfulfill and a sign that we are trusted and relied upon by customers.
Our commitment to manufacturing excellence, inquisitiveness,and spirit of challenge originate in the determination of our
founder, Hosui Shigemune, to “enrich society through the powerof electricity.” He was a firm believer in looking beyond products
to envision prosperous lives for many people who use them andrefining technologies to enrich society through business. This is ourvery mission as a manufacturer and the reason for our existence.
In today’s world, climate change and many other intricately
linked societal issues are becoming manifest. In the face of theseissues, the Sustainable Development Goals (SDGs) for 2030 and
the Paris Agreement were adopted in 2015 as agendas for thewhole world to address. These agendas encompass many fields
where we can contribute to solutions by applying the technologies
and expertise we have cultivated over the years. We at Meiden willkeep our founding spirit and determination close to our hearts as
we continue to pursue manufacturing excellence that contributes
to society, looking fifty and even 100 years into the future. In doing
so, we aspire to be a company that plays its part in achieving
sustainability and is truly indispensable to society.

do what they did. Instead, their actions were driven by a sense of

B ecom ing a company t h at is t r uly
indispensable to society

responsibility for helping customers whenever they are in trouble,

It is said that a company is only as good as its people. Without

dirty water almost up to their waists in order to restore customers’facilities as quickly as possible. No one taught these employees todeveloped through the course of their daily interactions. I believethat this powerful sense of duty shows just how much we aretrusted and needed by society.

employees, a company cannot exist, no matter how far computers
and Artificial Intelligence (AI) evolve. I believe that a company isnurtured by its employees’ exceptional techniques and passion. It
is impossible to talk about the fundamentals of our company thathave survived for 120 years without mentioning its employees.
The “舎 sha” in our company’s name, Meidensha, is a Chinesecharacter meaning “house.” It refers to our founder’s wish to
create a place that brings together people sharing a determination
to “enrich society through the power of electricity.” Even though
we are spreading our wings around the world as an infrastructurebusiness truly indispensable to society, that determination will
never change.
Our employees, who never back away from a challenge andhave continued to act and grow with society, are the pride of theCompany. I am truly grateful for the opportunity to work together
with these kinds of colleagues.
We take an infrastructure-supported lifestyle for granted. Let
us make it the standard for the whole world. In our 120th year, wemark the start of a new chapter in our history aimed at realizing amore affluent tomorrow.

9

MEIDENSHA REPORT 2017

MEIDENSHA REPORT 201710

120th Anniversary Special Issue

Corporate History

Beginning in 1897, our 120 years of supporting social
infrastructure through excellence in manufacturing
1897 -

The 1970s -Founding and Birth of “Meiden a Motor Company”

WEB

The 1980s -A more detailed timeline may be found on our website.
http://www.meidensha.com/corporate/corp_05/index.html

The 1990s -The 2010s -Evolving into “Meiden a PowerElectronics Company”

Evolving into “Meiden a System
Engineering Company”

Approaching Our Centenary

Aiming to Be “Meiden a Global
Company”

In 1897, our founder Hosui Shigemune

and sold 18 motors between 1903 andDuring Japan’s postwar economic boom,

In the latter half of the 1980s, economic

started a factory in the belief that one

1904. He continued with research andMeiden actively expanded into the industrial

expansion

led

day Japan would build its own electricmade prototypes in the desire to develop

systems business and contributed to the

production

capacitymachinery. Meanwhile, Japan depended on

more products of his own. His efforts led

imported products for much of its industrial

Meiden celebrated its 100th anniversary

Today, the Meiden Group is expanding

boost

its

in 1997. Japan’s business environment

its presence in markets outside Japan,

factories

andchanged drastically after the collapse ofespecially in the ASEAN region. As partdevelopment of industry in Japan. In about

upgrade its production system. We added

the bubble economy, and managementof this, we transferred to our overseas

him to devise an induction motor design

1970, society was beginning to prize quality

to our family of Group companies andhad to deal with a time of crisis. However,subsidiaries a stronger regional supervisory

machinery. His business at that time wasmethod in 1905. In the following year, heover quantity. Likewise, Meiden switcheddeveloped a variety of businesses to makethe legacy we had inherited from ourrole;mainly repair of electrical equipment andstarted production of motors to his own

its management strategy from quantity

us a stronger enterprise.

predecessors,

enterprises outside Japan, and opening

manufacture of switches. However, his

design method.

base to quality base. On the technical

We grew to have three core businessdeveloped human resources, became theMeidenat

totechnologies

and

well-

e.g.

building

partnerships

withtraining centers for local staff.

efforts to build made-in-Japan motors gave

Meiden’s motor production helped toside, our aim was to develop new products

areas, adding mechatronics and electronics

base for a new era of expansion as we hit

him several new ideas for development ofmodernize Japanese industry and becamethat made full use of our employees’

to our existing power electronics field.

the 100-year milestone.

own products.

the cornerstone of value-building at Meiden

creativity. At this time, we began to cement

The integration of technologies from each

Upon our 110th anniversary in 2007,

technology. We also enhanced one-stopthat still persists today.

our status as a manufacturer of heavyof these fields to create management,

we christened ThinkPark Tower, a facility

service business ranging from equipment

electrical equipment, having developed

monitoring, and control systems, evolves

combining our head office building with

manufacture to maintenance, inspection,

new

heavy

our Group into a company known as

pleasant greenery in Osaki, Shinagawa City,and operations and management.

electrical technology (power) with the latest“Meiden a System Engineering Company.”

Tokyo, where our company was founded.

In

1901,

Shigemune

successfully

developed a three-phase induction motor

products

thatcombined

We are using ICT and IoT to increase
our product competitiveness and systemelectronics technology.

The world is undergoing vast change,
but Meiden will never stop endeavoring tocontribute to the formation of an “af uent
future society.”

Meiden Group History
1897

Company founded as a privately operated factory for electricalmachinery

1913

Osaki Factory established

1917

Private operation incorporated as “Meidensha”

1935

Nagoya Works established1937

Shinagawa Works established

1939
1955

Nishio Works establishedTechnical transfer agreement with AEG for air circuit-breakers
and transformers

1958

Opened the Head Office in Ohtemachi, Chiyoda-ku, Tokyo

1961

Numazu Works establishedTechnical transfer agreement with ASEA for turbine generators

11 MEIDENSHA REPORT 2017

1967

Electronics Device Factory opened in Numazu

1983

Adoption of the phrase “powertronics, mechatronics, & electronics”

2006

1968

Technical transfer agreement with General Electric for vacuum interrupters

1987

Technological exhibition held to celebrate the company’s 90th anniversary

2007

1969

Technical transfer agreement with SEVCON for electrical equipment forforklift trucks

1993

R&D Center completed

1995

Head Office moved to Chuo-ku, Tokyo

2009

Technical transfer agreement with AEG for thyristor rectifiers and processing
lines

1997

Celebrated 100th anniversary

2012

Capital and business alliance with Ono Sokki Co., Ltd., for the automotive testing
systems business

1972

Adoption of the term “powertronics”

2000

Release of Medium-term Management Plan “New Construction 21”

2013

Japan AE Power Systems Corporation joint venture dissolved

1973

Technical transfer agreement with General Electric for high-frequency
thyrister inverters

Japan AE Power Systems Corporation established

Our 110th anniversary
ThinkPark Tower completed and the head office moved to Shinagawa-ku, Tokyo

Dissolved Meiden Foundry Industrial Co., Ltd.

Japan Motor & Generator Co., Ltd., established
2001

Motor development and manufacturing business merged into Kofu Meidensha
Electric Manufacturing Co., Ltd.

2014

Absorbed MSA Co., Ltd.

2015

Stake acquired in Prime Electric (now Prime Meiden)

1976

Gotanda Office opened

2002

Kofu Factory established

1977

Ohta Works established2003

Merger with Meiden Engineering Corporation

1979

MEIDEN SINGAPORE PTE. LTD. established

2004

MSA Co., Ltd., established

Tridelta (now Tridelta Meidensha GmbH) acquired from Tridelta GmbH1980

Adoption of the phrase “powertronics & mechatronics”

2005

Work started on a development project near the West Exit of Osaki Station

Our 120th anniversary

2017

Maintenance and after-sales service businesses reorganized into Meiden O&M
Corporation and Meiden Engineering Corporation

MEIDENSHA REPORT 201712

120th Anniversary Special Issue

120th Anniversary Projects

120th Anniversary Events

120

Anniversary
Projectsth

On December 22, 2017, Meiden will mark the 120th anniversary of its founding, and weBelow is an introduction of the various anniversary projects that we are conducting to mark our 120 th anniversary incommenced anniversary projects in January 2017 to mark this occasion. In addition toorder to express our gratitude to our customers and our friends in local communities.

developing a concept and a commemorative logo, we asked Shuntaro Tanikawa to create

1. For Our Customers

a special commemorative poem, and we are holding various events.

MEIDEN EXPO ~ Starting the 120th year ~were originally implemented to teach students about the joy of creation and

We held MEIDEN EXPO ~ Starting the 120th year ~ to express ourthe importance of electricity and infrastructure, Meiden also conducts visitsthat have supported infrastructure up to this point, as well as the
products, systems, and services that will support infrastructurein the future. You can view a report of the expo on the 120th

these classes, students learn through experience about the mechanismsthat allow electricity to flow, using towns
and infrastructure as tools to enable
students to envision specific applications,in order to understand the importance ofLocations: Tokyo, Nagoya, Osaka, Thailand, Singapore

electricity and develop an interest in it,

2. For Our Friends in Our Local
Communities
Overseas

Donation of facilities to schools in Thailand

Meiden donated to a primary school, junior & senior high school,
and university in Thailand, together with Thai Meidensha, which
also celebrated their own 50th anniversary.
Donation of school facilities(a school building to the Mae Cam’s Baan Thung Yao
Primary School and a library room and water storage
tanks to Kalayaniwattana Secondary School)

Hosui Shigemune founded Meidensha Corporation

In January 2017, a ceremony was held at the recently completed facility

based on the determination to pave the way for a brightand was attended by officials fromrange of products, systems, and services throughout theto junior high schools, to develop scientific thinking about electricity. In

anniversary website.
(technological presentation)

future with electricity. Since then, Meiden has provided a

Science hands-on learning

In addition to “manufacturing classes” for elementary school students, which

gratitude to our customers and showcase Meiden’s technology

ConceptJapanand familiarity with it.

3. For Employees

Science hands-on learning

Creation of a theme song
We have created a theme song to foster a sense of solidarity inemployees of the Meiden Group. The theme song was composedusing phrases that were submitted by employees and their families.
There were over 2,000 submissions from around the world, andemployees of the Group voted to select the phrases that would be
included in the song. The song was performed by May J, and wecreated and released a promotional video featuring a total of 800
employees.
The song’s title is “One to Love,” which was created from thenumber 120 (1 = One, 2 = to, 0 ⇒ Love). The title of the song also
reflects the fact that Meiden has grown into
a company that has created connections

the local educational authority andwith many people through a range of

local government.
The ceremony held at the Mae

products and projects, and is loved by theworld, and supported social infrastructure for 120 years.

Cam’s Baan Thung Yao Primarycommunity and reflects that love back toGoing forward, Meiden has the determination to continue

School was attended by its pupils

the community since the founder, Hosui

to support social infrastructure and contribute to people’s

and school staff as well as local

lifestyles.

people.

Mae Cam’s Baan Thung Yao Primary SchoolThe

ceremony

K al ay ani wat t ana

at

S econdary

by guest speeches, a ribbonpresentation of a memorial gift.

within it represent infrastructure and human connections.

Beginning the Future:
A poem by Shuntaro Tanikawa

Kalayaniwattana Secondary School

King Mongkut’s Institute of Technology Donation Course“NHKSO Afternoon Classic Series”. Listeners were able to hear the

An endowed course in the field of engineering and science has been

best performances of familiar masterpieces by the NHK Symphony

opened at Ladkrabang Campus

Orchestra along with a conductor and two soloists of worldwideof King Mongkut’s Institute offame.

Technology (KMITL).
The

endowedcourse120 th Anniversary Website

was

opened as part of the specialized

In 2017, we will celebrate our 120th anniversary. As astudents of Electrical Engineeringjunction between past and future, we asked Shuntaro

Department.

“electric boy,” to create an original poem for the occasion.

Special sponsorship of the NHKSO “Afternoon Classic Series”
Meiden is proud to sponsor the NHK Symphony Orchestra’s

field group activities of 4th-year

Tanikawa, Japan’s most legendary poet, himself once an

Keynote lectures are to be

King Mongkut’s Institute of Technology
Donation Course

given twice a year by Meiden front-line specialists at KMITL on thelatest technology.

Going forward, Meiden will promote projects withthe aim of being a company that is loved by all.
Meiden has created a 120th anniversary website withdetails and reports on Meiden’s 120th anniversary
projects, which is updated from time to time. Please
have a look, the website will be available until late
December 2017.
WEB

13 MEIDENSHA REPORT 2017

http://www.meidensha.com/120th/unity/index.html

4. For All of Our Stakeholders

They also represent the bright future of infrastructure andlifestyle that will be brought about by Meiden.

You can listen to the song here (120th Anniversary Website)

dance by its students, followed
cutting event at the library and

The zero in “120” signifies the Earth. The two circles

to repair electrical goods (One).
WEB

School opened with a song andAnniversary Logo

Shigemune, began with a single workshop

http://www.meidensha.com/120th/index.html

MEIDENSHA REPORT 201714

Strategy

Message from Management

The Meiden Group aims to further increase its corporate
value by uniting and working closely in steadily
implementing strategic measures to meet the targets
outlined in the V120 Medium-term Management Plan.

Results for consolidated orders, net sales, and income

Results for fiscal 2016

(million yen)

Fiscal 2016 (Planned)

Fiscal 2016 (Results)

In fiscal 2016, the Japanese economy was able toOrders received

250,000

224,136

sustain a mild recovery, with stable corporate profitability

Net sales

and capital investment. However, downward pressure

230,000

220,141

Operating income

9,000

8,849

Ordinary income

8,500

8,209

Net income attributableto owners of parent

6,000

5,743

from factors like the slowdown in emerging economies
continued to be a threat. Meanwhile, the outlook for the
global economy remained uncertain, with a steady upturnin the US and some developing countries contrasting* See pages 19-20 for details of results for each segment.

with instability such as the hostile situation in the Middle
East and the Brexit issue in the EU.

forward with the measures outlined in the “V120” three-

Fiscal 2017 strategies for meeting
the V120 targets

year Medium-term Management Plan for fiscal 2015

Fiscal 2017, in which we will celebrate the 120th anniversary of

to fiscal 2017, focusing on “enhancing the productour founding, is also the final fiscal year of V120. I am feeling acompetitiveness” of the core heavy electrical products

good response to our efforts so far, so we will continue to steadily

that are the source of the Group’s strength and realizing

implement the strategic measures outlined in V120. Although“a stronger earnings base for the Group’s businesses in

the heavy electric business is not one that sees dramaticJapan” and “expanded growth of overseas business.”

growth in short periods of time, electricity is “infrastructure forAgainst this backdrop, the Meiden Group strove tofurther increase its corporate value by steadily moving

Consolidated results for the Meiden Group in fiscal

infrastructure,” supporting other infrastructure like railways and2016 were affected by factors including delays in thewater treatment, and I think this is an area where we will beorder timing of overseas projects, and more cautious

able to achieve sustainable growth.

capital investment in the private-sector manufacturing

We are also focusing on efforts to plant the seeds

industry due to the strong yen. Compared to theof new business. Led by our newly established Businessprevious period, sales declined 7.3% to 220.141 billion

Development Division, we will intensify and accelerate ouryen, operating income fell 15.9% to 8.849 billion yen,business development capabilities, including commercializing

ordinary income fell 22.5% to 8.209 billion yen, and net

new products, promoting application development, andincome attributable to owners of parent dropped 17.5%

assessing the pros and cons of commercialization. In addition,

to 5.743 billion yen.

we will work as a Group to improve our financial standing in

In major managerial indicators, compared to theorder to meet our targets of strengthening our capital base by

previous period, our equity ratio rose 3.1 points toincreasing profitability, enhancing our ability to generate cash

29.6%, ROE fell 2.2 points to 8.2%, and ROA based onflows by using assets more efficiently, and ensuring financial

operating income fell 0.6 points to 3.5%.

stability by diversifying our funding sources.

Strategic Importance of our Medium-term Management Plan V120

VisionHeavy electric machinery

V120

manufacturer that continually
grows and develops while

Increased
profitability
Yuji Hamasaki
Representative Director and President,
Meidensha Corporation
September 201715 MEIDENSHA REPORT 2017

FY

2017

supporting the future ofsocial infrastructure

FY

2015

MEIDENSHA REPORT 201716

Enhancing product competitiveness from theour training system, promote diversity starting with increased

development and production sides

opportunities for women, and otherwise strive to operate ourOn the development side, efforts to make the Meiden Group’s
core lineup of heavy electrical products (products for power
generation, transmission, and distribution, motors, inverters,etc.) more competitive in terms of price, performance, quality,
and originality have yielded results in the form of developmentof new products like a four-pole salient-pole turbine generator,
and the world’s first 204 kV gas-insulated switchgear (GIS)
incorporating a vacuum circuit breaker (VCB). We will continue
to focus on strengthening our core technologies in order tocreate even more distinctive products in the future, such as
new products based on vacuum technology.
Meanwhile, on the production side, we will make capital
investments to boost productivity according to product categories
and manufacturing styles. In particular, we will work to further
enhance quality by creating a system for verifying quality at
the development and design stages, in addition to developing

Transforming our business model to increase

Overseas business expansion in step with therevenuepace of growth in each country

Conditions in the Japanese infrastructure market are currently

We will continue to strive to make overseas business accountin a state of great flux. While new business is decreasing due tofor 30% of both orders and sales for the whole Meiden Group.

factors like the declining population and national and regional

Although we expect conditions in overseas markets to remain

financial difficulties, demand for equipment to replace aging

uncertain, we anticipate continued growth in demand forinfrastructure or make existing infrastructure more energy-

infrastructure in developing countries, particularly those in Asia.

efficient is growing. Faced with this environment, the Meiden

We will participate extensively in social infrastructure projects

Group is focused on transforming its business model in orderin developing countries to expand our business in step withto increase revenue.

the pace of growth in each country. More specifically, we

In public infrastructure- and power-related fields like water

will promote partnerships with local enterprises in Southeast

treatment, we will work to increase the value we provide toAsia, and focus on entering regional power utility markets.

customers by joining public-private partnerships (PPPs) andIn the railway sector, we are currently involved in some large

enhancing our ability to propose solutions that take advantage

projects including construction of new lines and extensionsof one-stop services, as well as drawing on demand fordue to urbanization. We will reinforce the structures we need

upgrading of existing facilities. Utilizing ICT and the IoT is also

to continue meeting this vigorous demand in the future. In

extremely important. The Meiden Group has an edge when it

addition, we will move forward with creating a system forcomes to advising customers on solutions, since we possess

strategically recruiting and developing human resources thatboth control technologies and expertise in infrastructure

can serve as leaders on-site, and enhance our system for

management grounded in the field. By forging partnerships

managing financial, quality, and other risks by bolstering thein areas like air conditioning and machinery where we arefunctions of our regional headquarters in Singapore and China.

still lacking, we will build a framework for undertaking a wider

Developed countries including those in North America

range of maintenance services.

and Europe are the sources of advanced technologies for the

In the private sector, we will enhance Group-wide efforts

environment, information/communication, and other fields, andsuch as proposals for equipment upgrades and maintenancewe need to keep a close eye on these trends. As a result, we will

services based on walkthroughs of customers’ plants, as wellestablish a base in the US’s Silicon Valley, where we will work to

as introducing specialty products in response to the growing

expand sales of vacuum capacitors and other semiconductor-

demand for upgrading production equipment.

related products in addition to gathering information on

In the industrial systems field, we will increase our earning

cutting-edge ICT and environmental technologies and creating

power by pursuing even smaller and more efficient motors

business models for combining them with our specialty

and inverters for electric vehicles (EVs) and plug-in hybrids

products.

production systems utilizing ICT and the IoT as well as optimal
supply chains. Although many of our products are individuallydesigned, we will move forward with the adoption of production
systems to achieve shorter lead times and less reworking.

Strategically building new partnerships
We will strategically forge partnerships with private companies,
universities, research institutions, and other organizations bothin Japan and overseas to combine the strengths of the Meiden
Group with external resources and insight. This will allow us tomore effectively expand and enhance our technical strength,
sales channels and distribution networks, and production
functions.
In Japan, stronger ties with water turbine manufacturer
EAML Engineering Co., Ltd., have yielded results in our small
and medium-sized hydro power business. By building a wide
range of these kinds of partnerships with other industries, wewill continue to create new business opportunities.

to maximize motivation. In Japan, we are working to develop
and enhance our human resources by expanding elective andtechnical training in addition to level-based training. Overseas,
we are encouraging local employees to improve their technicalskills at our training centers in Singapore and Thailand. We willfurther develop and augment the Group’s human resourcesby actively promoting local employees overseas to managerial
positions and recruiting highly specialized engineers, as well as
inviting engineers to Japan for exchanges and more.
In order to reform working styles, we have developed“Smart Work V120,” a plan to reduce the total number ofworking hours. We are implementing measures such as
establishing days when all employees leave work on timeand encouraging employees to take scheduled leave, as wellas cross-training engineers, utilizing former employees, andmaking capital investments in order to increase productivity.
Through policies including the expansion of systems to support
childcare and nursing care, we are also working to improve
employees’ work-life balance and promote diversity.

Toward greater corporate value
On December 22, 2017, we will celebrate the 120th anniversaryof our founding. Over the past 120 years, we have striven toremain a trusted company by emphasizing a willingness tomove hand-in-hand with customers, and employing ingenuity
to provide them with solutions. In the future, we will work
to increase the corporate value of the Meiden Group bycontinuing to take on new challenges and remaining in touchwith our mission of supporting society, in order to contributeto the realization of a more prosperous and livable tomorrow.
As we move along on this path, we hope for your continued
understanding and support.

Overseas, the Indian transformer manufacturer and seller
Prime Meiden Ltd. became our subsidiary through the additional
acquisition of shares, and we are already seeing results inthe form of orders of transformers for Indian freight railways
and delivery of extra-high voltage substation equipment toJapanese manufacturers. We are also working to expand oursales channels for flat-sheet ceramic membranes, including thesigning of a basic purchase agreement with Siemens Energy.

Human resource development and workingstyle reforms(PHEVs), along with a partnership strategy for model-based

Based on the understanding that human resources are thedevelopment in our dynamometer business.

foundation beneath every business strategy, we will improve

17 MEIDENSHA REPORT 2017

systems and treat our people fairly. We will also continue initiatives

MEIDENSHA REPORT 201718

Overview by Business Segment

At a GlanceReal Estate

Net Sales (consolidated)

Operating Income (consolidated)

220,141 8,849
millions of yen

Net Sales Trend (consolidated)

Operating Income* Trend (consolidated)

Millions of yen

Millions of yen

230,299

237,404

9,997

220,141

1.4%

Other

8.1%
Maintenanceand Servicing

10,517

13.9%

8,849

SocialSegmental
Infrastructure
Systems
Sales Breakdown

millions of yen

53.2%(FY2016)
Industrial
Systems

23.4%

2014

2015

2016

FY

2014

2015

2016

FY

* Operating income for fiscal 2014 has been retroactively restated due toa change in presentation. (Starting in fiscal 2015, consolidated Group
expenses associated with employees on loan are stated as “operating
expenses” instead of “non-operating expenses.”)

Social Infrastructure Systems BusinessWe manufacture and sell equipment for emergency and non-emergency power
generation, hydroelectric power generation, and power transmission and distribution
facilities, to power companies, government agencies, railways, and buildings andfactories in Japan and abroad. The product offerings include power quality stabilization
systems and power generation systems such as solar power and small and mediumsized hydro power, as well as energy solution services such as smart grid systems.
We are also involved in the fields of drinking water and sewerage treatment for local
governments in Japan. Our activities include manufacturing and sales of electricalfacilities for water processing systems and process control systems and information
networks. We also offer solutions services such as contract facility management
services for drinking water treatment plants.

Industrial Systems BusinessWe manufacture and sell motors and inverters for elevators, textile machinery,industrial vehicles, and electric vehicles. Other products include vacuum capacitors
and industrial computers for makers of semiconductor manufacturing equipment.
We also manufacture and sell dynamometers and other testing systems for automobile
manufacturers, and logistics support systems for factories and warehouses.

Maintenance and Servicing BusinessWe provide services relating to the remote management and monitoring of facilities
and the proposal of measures for extending the life of facilities, energy conservation,and other services related primarily to the maintenance of products we supply.

Net sales in this segment fell 10.0% from the previous fiscal year to ¥126,530 million, while operating
income fell 17.0% to ¥3,297 million.
In our electric power and social infrastructure system business, we saw increased demand forequipment updates among electric power companies in Japan and for small and medium-sizedhydropower facilities. However, numbers fell overall year on year due in part to declines in substationand distribution equipment for Japanese companies’ production bases overseas, as well as solar
power products.
In the railway system business, sales were solid for railway projects in Southeast Asian countries
like Malaysia, Thailand, and Singapore, lifting the numbers over the previous fiscal year.
Overall numbers in the water and environmental system business were lower than the previous
fiscal year as a result of factors such as less new construction of drinking water and wastewater
treatment plants, due in part to the declining population and financial difficulties among localities, aswell as intensifying competition with rival companies.

Net sales in this segment declined 9.1% from the previous fiscal year to ¥55,552 million, while
operating income fell 38.8% to ¥2,465 million.
In the motor and inverter business, general industrial products for elevators, etc. were about thesame as the previous fiscal year, but overall numbers were lower than the previous fiscal year due toa decline in motors and inverters for PHEVs/EVs.
In the electronic equipment business, vacuum capacitors and pulse power supplies were
especially strong, backed by vigorous capital investment among semiconductor manufacturing
facilities, and lifted the overall numbers.
Numbers in the dynamometer system business were lower than the previous fiscal year, as aresult of factors including reduced investments by automakers due to the trend toward a stronger
yen, as well as fiercer competition with rival manufacturers overseas.

Thanks to increased demand for maintenance and the implementation of facility-wide one-stop
services offering everything from equipment manufacturing, maintenance, and inspections to upkeep
and operational management, as well as diagnoses and proposals based on walkthroughs of privatesector plants and facilities, net sales in the segment rose 6.6% from the previous fiscal year to¥33,044 million, while operating income rose 29.5% to ¥3,781 million.

Millionsof yenNet Sales

141,014 140,585

We offer property rentals, including office spaces at ThinkPark Tower (Osaki,
Shinagawa City, Tokyo).

The Group is engaged in the real estate leasing business, centering on the office and commercial
building ThinkPark Tower (Osaki, Shinagawa City, Tokyo). The net sales in the segment totaled ¥3,452
million – nearly the same level of the previous fiscal year, and operating income amounted to ¥1,340
million.

This sector includes marketing companies that handle a wide range of products,
welfare services for employees, and others.

19 MEIDENSHA REPORT 2017

This segment includes categories not included in any of the above segments, such as manufacturingand marketing of electrochemical measuring equipment and electric insulation materials, welfare
services for employees, and goods merchandising. Net sales in the segment declined 2.8% from theprevious fiscal year to ¥19,155 million, and operating income declined 5.9% to ¥464 million.

5,243

126,530

3,297

2014

2015

55,4142016

FY

Millionsof yenNet Sales
61,0902014

2015

Net Operating Income

2016

FY

Millionsof yen

4,030

55,552
3,023

2,465

2014

2015

29,773

2014

2016

FY

Millionsof yenNet Sales
31,0072015

2014

33,044

2016

3,289

3,386

3,452

2014

2015

2016

FY

19,712

19,155

2014

2015

2016

2,550

2,921

2014

2015

Net Operating Income

FY

Millionsof yen20,4672015

Net Operating Income

Millionsof yenNet Sales

Other BusinessMillionsof yen3,971

Net Sales

Real Estate Business

Net Operating Income

3,781

2016

1,340

2014

2015

2016

2014

FY

Millionsof yen

1,280

378

FY

Millionsof yen1,240

Net Operating Income

FY

2016

FY

Millionsof yen

493

464

2015

2016

MEIDENSHA REPORT 2017

FY

20

Creating Value through Our Business

The Meiden Group Value Creation Process

The Value Creation Process
We Seek to Realize throughActualization of Our
Corporate Philosophy

The Meiden Group conducts its corporate activities based on a philosophy of value provision“For customer peace of mind and satisfaction,” with “Illuminating a more affluent tomorrow”
as our corporate mission. Our New Medium-term Management Plan, “V120”, which weare currently implementing, sets out financial targets and strategies for realization by fiscal
2017, which serve as markers towards the realization of these goals. The foundations
for the implementation of our strategy are responses to social problems and risks, thecreation of a system of corporate governance, and the cultivation of human resources.
While continuing to bolster these foundations, we will maximize the value we provide andwill realize sustainable growth and development. This can be achieved by strengtheningof our products competitiveness as the cornerstone of all our activities for developmentof business strategies that are consistent across development, manufacturing and sales.

Increasing the corporate value of the Meiden GroupFY2016

Building trust by continuing to
respond to the expectations of ourcustomers and society

Capital that supports the Meiden Group businesses

Earning
Trust

Corporate Mission > Strategy > Business Activities

Net sales 220.1 billion yen

Net income attributable to ownersof the parent

5.74 billion yen

Operating
8.85 billion yen
incomeTotal assets

247.6 billion yen

Net income per share

25.31 yen

Value provided to customers

For customer peace of mind and satisfaction
Financial capital (Funds)

We will consider the environment and offer comprehensive
customer support to ensure our customers’ peace of mind
and satisfaction. We will also actively assist our customers insolving their problems and realizing their cherished dreams
through the provision of high-quality products and services.

- Own capital and funds procured from financial institutions that can be
employed to conduct business activities

Manufacturing capital (Infrastructure/Equipment)- Production bases and production equipment that provide the foundation for
product competitiveness- Network for provision of maintenance services

Intellectual capital (Technology/Expertise)- Technology and expertise developed since the foundation of thecompany (All departments)

Human capital (Human resources)- The ability, experience, and ambition of human resources who
support the sustainable growth of the company- Corporate governance system - Training facilities

Social capital (Relationships of trust with stakeholders)

Efficiently
inject capitalto support
business- Relationships of trust and dialogue with stakeholders, in particular customers- Cooperation with suppliers implementing the same CSR activities as
Meidensha Corporation

Natural capital (Environmental resources essential tobusiness activities)

Research andDevelopment

Strengthen theearnings base of
the Group’s
domestic
business

Strategy

Medium-termManagement Plan
“V120”

Expand thegrowth ofoverseasbusiness

Create a new
future throughproduct
competitivenessBusiness activities

Sales
Engineering

Creating Value
through Our
Business
P.23-28

Concrete examplesof the provision ofConsideration of thevalueenvironment

・Conservation of energy
・Conservation of resources
・Securing of water resources

P.23-28

Enhance productcompetitivenessConstruction andInstallation- Natural resources (oil resources, water, minerals, etc.) and energy
resources used in production activities

Main business risks

Maintenance

Sales

Comprehensive
customer support

DesignManufacturing

Foundations for value creation

Social issues that we recognize

High-quality products

・Optimal engineering that considers and services
・High-quality, high-performance,
the customer’s perspective
and high-efficiency
・Safe, secure, and efficientequipment operation

Corporate governance

P.29-44

Understanding Diverse
Business Risks and
Identifying Social Problems

Active response

Ensure competitive superiority
Secure business opportunities

Main business risksSocial issues that we recognize- Economic trends- Changes in laws and regulations-	Worsening political situations
and different business practices
in overseas countries- Fluctuation in prices of materials- Natural disasters- Increasing demand for electricity with increase in global population- The worsening of climate change and the depletion of
resources with the development of the world economy- Responses to the aging of existing infrastructure in Japan andincreasing need for energy conservation- Increasing need for access to safe water resources
throughout the world

21 MEIDENSHA REPORT 2017

Steadily Realizing our Strategy through Optimal
Allocation of Capital

Challenge of Creating Value in Our Corporate
Activities

The Meiden Group has ceaselesslytransformed itself over the courseof its 120 years of existence, andwe have supported our businessactivities through the optimal
allocation of the various forms ofcapital that we have accumulated
over our history. The four key
measures of our Medium-termManagement Plan “V120” areshown to the left. By following
these, we will efficiently inject
capital to support our business andmeet our financial targets.

What actually creates value is the value chain
stretching from research and development
to maintenance. In their day-to-day businessactivities, each of our employees takes up
their responsibility as a manufacturer ofelectrical machinery that supports social
infrastructure, and challenges themselvesto create new technologies and new value
through creative thinking. And these daily
efforts are also connected to expanding our
total capital, increasing the corporate value ofthe Meiden Group as a whole.

12

Develop new
partnerships

Shift resources dependingon the direction of thebusiness

Four keymeasures3

4

Set and implement
financial targets

Strengthen corporate
governance

Challenge of creating newtechnologies and value
Day-to-day
日々の事業活動
business activities
Foundation for
価値創造の基盤
creating value
Corporate
企業統治
governance

Provision of Unique Valueand the Meiden Group’s
Strengths
Consideration for the environment, acomprehensive customer support system,and high-quality services are forms ofvalue that increase a company’s value forits customers, and they are also Meiden’s
strengths. These forms of value also win
trust from customers and generate robust
financial underpinnings, creating a virtuous
cycle that further strengthens managementfoundations.

Value provision

Contributing to greater
corporate value for customers

Winning trust from customers/
Robust financial underpinnings

Enhanced foundations
and strengths

The Meiden Group’s business activities are affected by a rangeof risks and social problems. Actively responding to these helps
to ensure competitive superiority and the ability to securebusiness opportunities. Recognition of this fact was the impetus
for the formulation of our New Medium-term Management
Plan, V120.

Identify business risks andunderstand social
issuesStronger managementfoundations

MEIDENSHA REPORT 201722

Creating Value through Our Business

Positive Results of the Medium-term Management Plan V120

Customer “expectations” are constantly changing.
That is why Meiden continues to embark on new
challenges.
Meiden sees fiscal 2016, the second year of the Medium-term Management Plan, as a “year of challenge” for building the
momentum to achieve the V120 targets. Under the V120, we aim to increase corporate value by promoting the basic policies;“strengthening the earnings base of the Group’s business in Japan” and “expanding overseas business,” with a focus on “enhancing product competitiveness” for the Meiden Group’s core products of heavy electrical equipment. In addition, we will
pursue better efficiency in promoting these three basic policies by strategically building external partnerships.
The following are some of the initiatives that were implemented to achieve the V120 targets and that brought about
positive results in fiscal 2016.

1

Strengthen the Earnings Base of theGroup’s Business in JapanAs new demand is expected to decline in the Japanese
infrastructure market, we are working to enhance our ability topropose solutions and increase value for customers by leveraging
IoT technology for maintenance services, enhancing one-stop
services for supporting customers’ entire facilities as a package,and participating in public-private partnership projects, etc.

2

Expand Overseas BusinessWe are working to expand our social infrastructure businesses inemerging countries, particularly in Southeast Asia, with an aim toachieve an overseas sales ratio of 30%. In addition to building
partnerships and conducting flexible long-term investment, we areconducting HR development initiatives and improving ourmanagement system.

01

Transform businessmodelsCreating new
business opportunities

Enhancing one-stop
services02

Key policies toimplement
strategies

Expandingbusiness
in ASEAN andemerging countries

Enhancing Product CompetitivenessWith an aim to become a heavy electrical equipment manufacturer that
supports social infrastructure while growing continuously, Meiden is working toenhance fundamental technology for core, heavy electrical equipment
products, including power transmissions and distribution products, generators,
motors and inverters, and more, thereby creating new products.

23 MEIDENSHA REPORT 2017

Application of the IoT technology■ Development of an online smart diagnostic service using IoT technology
We have developed a remote monitoring service that helps
improve the operation rate of a facility for customers andreduces maintenance costs. This system offers a high levelof preventative maintenance by using IoT technology anddetecting changes in the conditions and abnormalities of the
facility at an early stage, through sensors on equipment. The
equipment conditions that had previously been inspectedby workers during daily inspections is now remotely andcontinuously monitored, which is advantageous for a stable
operation of the facility.
In December 2016, Meiden developed Japan’s first
online diagnostic and monitoring system for the predictionof the remaining product life for transformers. The system
continuously monitors and analyzes the data collected online,
allowing appropriate maintenance work to be conducted asnecessary, so that any major failure, such as power outages,
can be prevented.

Internet

Data analysis
Cloud service

Acoustic sensor Vibration sensor Current sensor Temperature sensor
Monitoring andcontrol equipment
data

Daily and periodic
inspection data
Generator

Transformer Switchgear panel Switchgear

Creating new business opportunities

Conducting growth investments

Application of the IoT technology

03

01

02

01

02

￨1￨ Strengthen the Earnings Base of theGroup’s Business in Japan■ Joint development of a control and protection system for hydropower with Chubu Electric Power03

Enhancing sales,
technical, andmaintenancesupports andservices

Meiden has completed the development of a control and protection system technology for small
and medium-sized hydropower systems that comprise a high-speed field network using an
industrial LAN, which was jointly developed with Chubu Electric Power Co., Inc. The system retains
the performance of the previous model “All Function Integrated Control and Protection System”,
but for a first in the industry offers reduced wiring and miniaturization. In 2016, we delivered thefirst unit to Chubu Electric Power Co., Inc., and we commenced sales nationwide in December ofthe same year.

■ Commencement of an urban flood
monitoring service
Against the backdrop of increasingly sudden downpours
and the partly-revised Flood Prevention Act, etc., Meiden
commenced in July 2016 the “Urban Flood Monitoring
Service,” an IoT service as a useful measure against urban
flooding caused by sudden downpours, etc. in conjunction
with Nihon Suido Consultants Co., Ltd. The service monitors
the conditions of wastewater pipes and transfer data to a
cloud server via the internet.
This is a cloud solution service aimed at application by
local governments for their software measures for disasterprevention. The system collects rainfall information from the
XRAIN system (X-band MP radar network) of the Ministryof Land, Infrastructure, Transport and Tourism’s, and waterlevel information of wastewater pipes from sensors fitted
on manhole covers, and links the information with a GIS(geographic information system) to provide the real-time
information required for disaster prevention.

GIS information(geographic information)

Cloud
serverX-band MP radar(rainfall information)

Sudden downpour

Sandbags
School Securing evacuationassembly area
Local
government

Manhole antenna(water level
information)
Water
level
gauge

Underground work-sites
Evacuation
Residents
Sandbags
Evacuation

Underground facilities
and worksites
Evacuation advisory
Water control gate
Sandbags

Evacuation advisory
Situation assessment
Sewagetreatment plants Various
Operation and recommendations
management
supportThis service features IoT technology that has made it possible to visualize information which had
previously been difficult to monitor, such as the water levels in wastewater pipelines. By sharing
information through the Cloud, it becomes possible to centralize disaster prevention information andcreate a disaster prevention platform for stocking information, such as rainfall and water levels, whichallows assistance to be provided in disaster prevention anywhere at any time.

MEIDENSHA REPORT 201724￨2￨ Expand Overseas Business01
Conducting growth investments■ India: Additional share acquisition of Prime Meiden Ltd. andcontracts secured

03
Enhancing one-stop services■ Expansion of PPP business and one-stop services in the water and environment business*Accelerating PPP business at local governments in Japan
In addition to a range of social issues, such as financial difficulties, a shrinking population, and aging infrastructure, there are newissues becoming apparent for local governments in Japan to address, such as passing technical skills down through the generations
and strengthening risk management with the ageing of their personnel. Institutions, including the Ministry of Health, Labour andWelfare and the Ministry of Land, Infrastructure, Transport, and Tourism, are actively considering the promotion of PPP business as ameasure to solve these issues.
Furthermore, the business environment surrounding Meiden is undergoing changes. With water supply and sewerage infrastructure
shifting from the stage of expansion and construction through to the next stage of maintenance and management, curbed public
investment has reduced construction of new water supply and sewerage treatment plants, and a declining population will require thedownsizing of facilities. Under such circumstances, Meiden, in addition to design and manufacture electrical equipment, is required tooffer a one-stop service that includes maintenance services, and facility operation and management services.
* PPP is the acronym of “Public-Private Partnership,” and it refers to partnerships between government agencies, etc., and private enterprises.

Commencement of a comprehensive water supply operation in eastern Gunma Prefecture
A private sector group, for which Meiden is the representative company, andthe East Gunma Water Supply Industry Association [C4] (“Industry Association”)
established through joint financing East Gunma Water Supply Service Co., Ltd.,
which commenced water supply operations and services for comprehensive
projects including extension works on April 1, 2017.
The Industry Association amalgamated the operations of three cities andfive towns in the eastern Gunma area in April 2016, in order to solve issues suchas an aging infrastructure and declining income. In addition to the introductionof comprehensive outsourcing to a private enterprise for the entire areas theIndustry Association covers, this amalgamation was intended to include repair andmaintenance work of the facilities that accompanied the close and consolidationof the ageing facilities. It was expected that this scheme would ensure efficientbusiness operations with technical and operational skills of private companies
while ensuring public benefits to be maintained and technical skills to be passed
down through the generation of personnel in the Industry Association.
This project involves a comprehensive
outsourcing of all operations relating to watersupply business, and as a public-privatecompany, is Japan’s first of its kind in the fieldof water supply, in that the business covers awide range of operations, including “maintenanceand improvement of facilities including pipelines,”in addition to “comprehensive operations fromwater intake down through to the faucet.”Future outlook
Just like the comprehensive business of the East Gunma Water Supply Industry
Association, Meiden expects to see a rapidly increasing number of PPP projects
coming up at local governments in Japan. Meiden will promote a new businessexpansion in this area, leveraging its unique know-how, its experience in building
social infrastructure in the past 120 years since its foundation, and its rich trackrecord of successful construction and maintenance projects, in particular, those
involving electrical facilities, of water supply and wastewater infrastructure
throughout Japan.
Furthermore, we will expand our horizons to cover entire water processing
systems rather than focusing on electrical facilities, and will further enhance our
one-stop services to cover entire plant facilities and provide support in all aspectsof the water supply and sewerage industry, including equipment manufacturing,equipment maintenance and inspections, plant maintenance management, andplant operation and maintenance.

25 MEIDENSHA REPORT 2017

In June 2016, Meiden acquired Prime Meiden Ltd. (“PML”) as a subsidiary through an
additional share acquisition for the purpose of accelerating the expansion of our transformer
business by leveraging geographic advantages of PML. In addition, we have revised ourmanagement strategy and enhanced our sales, finance, and manufacturing systems topromote business expansion. In fiscal 2016, Meiden and PML jointly received an orderfrom a consortium comprised of Sojitz Corporation and India’s Larsen and Toubro Limited
for 192 autotransformers for India’s high-speed freight railway project, and completed an
EPC (engineering, procurement, construction) project for a 220 kV power receiving facility
for Suzuki Motor Gujarat Private Limited.
Meiden aims to expand its business further in the Indian market and increase exports
to Africa and ASEAN.

02
Expanding business in ASEAN and emerging countries

The area covered by the Industry Association■ Thailand: Technical collaboration

Gunma
Prefecture
Midori City

Ora Town

Ota City

Oizumi Town
Chiyoda Town

Tatebayashi
City
ItakuraTown

Meiwa Town

Meiden concluded a technical transfer agreement on October 26, 2016 with Precise
Electric MFG Co., Ltd. (Chairman and CEO: Mr. Kitti Nutchayangkul, Bangkok, Thailand,
hereinafter “PEM”) in regard to low-capacity transformers for electricity power distribution.
In Thailand, demand is growing for power transmission and distribution equipment,such as high-quality transformers, that support a stable power supply against a backdropof economic development in recent years. In May, 2016, Meiden concluded a businesscollaboration agreement (BCA) with PEM for switchgear business, and to further strengthen
an alliance with them, the company concluded this technical transfer agreement fortransformer business. Meiden intends to enter the power utility market in the ASEAN
region, in particular Thailand, through the Precise Group’s sales network, and aims jointly
to obtain the necessary approvals for both businesses to enter the Thai power utility market
in fiscal 2017.

Main Sources of Value Creation
Manufacturing capital- A range of products to support maintenancemanagement services, such as automatic water
sampling devices- Cloud-based monitoring technology and remotemonitoring services
Intellectual capital- More than thirty years of experience and a trackrecord of operation and management services- A rich track record and know-how accumulated
through engagement in construction, maintenanceand services, mainly of electrical facilities forwater supply plants across Japan
Human capital- Experienced employees who support maintenancemanagement and operation- Optimal assignment of personnel for various
operation management systems
Society-related capital- Partnerships with local businesses that arefamiliar with local characteristics■ Development and delivery of high-efficiency, compact and light-weight 4-pole salientpole generators
Against a backdrop of increasing global power demand, a diversification of fuels, andconsideration for the environment, Meiden has developed a high-efficiency, compact andlight-weight 4-pole salient pole generator, and the first generator, delivered in January
2016, commenced operation in May. With the rotor changed from a cylindrical pole to asalient pole type, we have achieved a high efficiency of 98.3%, which is among the best in
the industry. We have also achieved a 30% reduction in mass and a shorter lead time overthe previous models. We have received orders for a total of eighteen units in fiscal 2016.
Six units are now in service.
We have received many inquiries for ASEAN countries where power demand is growing
markedly due to economic development. We plan to expand the generator capacity to 70
MVA, which is the highest level in the world in this class. Furthermore, we aim to achieve
further miniaturization and lightness in mass by promoting research in the latest insulation
technology and optimal cooling structure.

MEIDENSHA REPORT 201726

■ Malaysian “KVMRT” Rail Project*1■ Future outlook and issues facing the overseas railway business

Rapidly growing Kuala Lumpur and chronic traffic congestion

There is growing demand for railways, particularly in the ASEAN Region,and Meiden aims to secure contracts for large-scale EPC projects. The
Meiden Group has been developing its overseas railway business, mainly in
Singapore, since the 1980s. Many products have been used for more than
thirty years since their deliveries, and we aim to secure replacement orders
for such aging products.
Railways are a major public investment at the state level, requiring
local procurement and local production. As such, we will be willing to form
partnerships with local companies and will cater to the demands of ourcustomers, which varies with regions and countries. To ensure sustainablegrowth and development, we will enhance our recruiting process and staff
training, including employment of experienced foreign staff and training
programs for local staff so that they can take over project management
positions. We will continue focusing on the expansion of our railway business,
one of our core businesses, and catering to diversifying infrastructure needsin order to create a more prosperous tomorrow as a company that supportssocial infrastructure.

In Kuala Lumpur, one of the largest cities in Southeast Asia and rapidly
growing in recent years, chronic traffic congestion has become a social issue.
KVMRT, intended to become the major artery connecting the commuter
suburbs in the east and west of the Kuala Lumpur to the economic zone, is alarge-scale urban transportation system development project for the purposeof developing the city and easing traffic congestion. In September 2012,
Meiden received an EPC contract for a package of power facilities for KVRT
from Mass Rapid Transit Corporation Sdn Bhd, Meidensha designed, built,
and installed a 33kV substation and distribution network, DC substations,and remote power monitoring systems, completing Phase I in December
2016 and Phase II in July 2017, which enabled commercial operation to starton all the lines.
*1 KVMRT (Klang Valley Mass Rapid Transit): An urban transportation system spanning 51 km thatcrosses the Malaysian capital of Kuala Lumpur from east to west.

Delivery of underground station equipment for the
KVMRT project

Delivery of Catenary Eye® overhead catenary inspection system
to Malayan Railways Limited
In Malaysia, the overhead catenary*2 had previously been visually inspectedby maintenance staff. The need for maintenance, however, has grown aselectrification has progressed and train speed has become higher. Under
such circumstances, Meiden has completed its first delivery to Malayan
Railways Limited of the overhead catenary inspection system Catenary
Eye® (hereinafter the “System”), which uses a dedicated vehicle to inspect
the overhead catenary while running, as a part of the KVMRT Industrial
Collaboration Program (ICP)*3.
The System uses image processing technology and has the benefit ofproviding camera images for a visual monitoring of the conditions of theoverhead catenary. Such features as this have received high praise andhave resulted in a decision to introduce another six sets. It is expectedthat the Systems will make a great contribution to improvement in themaintenance and operation of Malaysian railways, for which electrification
extends to 1,000 km running through the Malay Peninsula. The Systems will
provide opportunities for us to come into contact with parties other than thecustomers for whom we have delivered our power facilities, and to gain anunderstanding of the issues that are facing the railway industry as a whole.
Meiden will work to develop a track record of the System and build
relationships in each country. In so doing, the Meiden Group will findopportunities for proposing solutions in the scope of our social infrastructurebusiness.
*2 Catenary (overhead conductor rail): An electric cable that is installed above train tracks and provides
electricity to trains*3 Industrial Collaboration Program (ICP): A program that is provided as part of a Malaysian Public Project
and that requires a system, services, etc., equivalent to the contract value, to be returned to the stateof Malaysia according to specific rules. The program is implemented by the Technology Depository
Agency Berhad (TDA) according to the policies of the Ministry of Finance (MOF).

27 MEIDENSHA REPORT 2017

Malay Peninsula

Petronas Twin
Towers area

Subang Airport

Kuala Lumpur

Manufacturing capital- Manufacturing and sales sites taking root in thelocal community- “JAPAN Quality” (high quality) productsIntellectual capital- The technology accumulated since the Company
was founded- The know-how to deliver high-quality equipment
timely and safely
Human capital- Local staff with high-level skills and a sense of
responsibility- Reliable project completion capabilities, supported
by extensive experience
Society-related capital- Relationships of trust with customers and reliable
delivery records- Partnerships with local companies

03

Kuala Lumpur
Central KL
Sungai
Buloh

Main Sources of Value Creation

KL Sentral Railway Station(Total length: 51 km)

KajangEnhancing sales, technical, and maintenance supports
and services■ Training programs for local staff
At our Southeast Asian Training Centers, we have provided educational
programs for local staff, on such topics as the Meiden Group’s Corporate
Philosophy and training programs for technical and workmanship skills, inorder to achieve globalization at the earliest, which is listed in our Mediumterm Management plan. In fiscal 2016, we have expanded training programs
to include topics such as compliance and global leadership, and we arecontinuing to promote localization initiatives.

CATENARY EYE®

■ Enhancement of control functions in ASEAN

Global leadership training programs

Meiden Asia, our controlling company in the ASEAN region, has expanded
its headquarter functions with the aim of making speedy strategic decisions.
In April 2016, we set up a new railway project office, and started employing
foreign engineers with a high degree of technical specialization. We aim tosecure and allocate resources appropriately to projects in the ASEAN region,
which has a large number of railway projects.
Handover ceremony
Deputy Transport Minister Aziz Kaprawi (left) and Meidensha
KVMRT Project Manager Oikubo (right)

Experience safety training: Cable burnout experience

MEIDENSHA REPORT 201728

Foundation for Creating ValueESG at the Meiden Group

ESG

Help Solve Global Issues

ESG at the Meiden Group
CSR, the foundation of sustained growth at the Meiden Group,is the very embodiment of the Meiden Group Corporate Philosophy.
The Meiden Group Corporate Philosophy seeks to delightcustomers by offering high quality products and services tohelp solve customers’ issues. It is also part of our philosophy
that through these business activities, we aim to fulfill our
corporate social responsibility (CSR) by proactively solving
global environmental problems and other social issues
and helping achieve a more affluent future. The Corporate
Philosophy expresses our wish to continually take on thesechallenges.
In other words, each employee practices the Corporate
Philosophy to make the Meiden Group indispensable tosociety.
The President’s CSR Policy Statement sets out three
key issues for the Meiden Group to address: environment,
society, and human assets (resources). By taking on thesethree key issues, with initiatives built on the fundamental
management elements of “corporate governance,”“compliance,” and “risk management,” we ensure oursustained growth and offer value to society through ourbusiness.

Pursuing Value Creation through Our Business

Help solve social issues

P. 23-28 Creating Value through Our Business

Meiden Group Initiatives on the Sustainable Development Goals (SDGs)

Help achieve a more affluent future

The environment surrounding the Meiden Group isalways changing. We will solidly grasp what the external
environment offers us, identify the risks and opportunities,
and act accordingly. Additionally, we will continually be taking
on initiatives to strengthen “the foundation for our businessactivities”, namely to enhance corporate governance,
ensure thorough compliance, and build stronger risk
management, to ensure company management is moresound, transparent, and efficient.

[ Environment ]Promote strategic environmental management
We contribute to society through the oﬀering of products andservices for the environment and energy. At the same time, we will
work to reduce the environmental impact of our business activities.

Provide values needed by society
We accept our responsibilities as good corporate citizens throughmany initiatives, including: resolution of customer issues; promotionof community involvement and proactive communication; proper
information disclosure at the correct time, etc.

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

Major initiatives• Expand products’ contribution to the environment• Reduce the environmental impact of businessactivities• Promote environmental management• Improve employees’ environmental awareness⇒ P. 31-34 (Environment)• Solve customers’ issues• Promote CSR that includes the supply chain• Proactively communicate with local communities• Disclose appropriate and transparent information at
the correct time
⇒ P. 37 (Quality Management)⇒ P. 38 (Supply Chain Management)• Promote better work-life balance• Create a positive working environment that bringsout the best potential and unique talents of each
employee• Develop human assets (resources)• Ensure workplace safety and health⇒ P. 35-36 (Human Resources Management)[ Management foundation of our business activities ]Compliance,
Corporate GovernanceRisk Management
By strengthening these building blocks of management foundation,
we hope to further cultivate the corporate culture necessary for CSR
management.

29 MEIDENSHA REPORT 2017

Sustainable Development Goals (SDGs): a set of seventeen goals
incorporated into the 2030 Agenda for Sustainable Development that world
leaders adopted at the UN Sustainable Development Summit in September
2015. Based on new goals that apply universally to all nations, each nation
will take initiatives over the following fifteen years to end poverty in any form,
fight inequality, and take steps to address climate change while ensuringthat no one is left behind.

Practice “President’s CSR Policy Statement”[ Society ]G

The Meiden Group will pursue manufacturing
excellence that benefits society, continually create value,and help solve social issues that include those addressedby the SDGs.

Related pages

President’s CSR Policy Statement

E

In December 2015 in Paris, the 21st Conference of theParties (COP21) to the UN Framework Convention on
Climate Change adopted the Paris Agreement on theprevention of global warming in 2020 and beyond, which
agreement came into effect in November 2016. Under
this agreement, most of the world’s nations promised toeliminate their emissions of greenhouse gases by the endof the 21st century. For its part, Japan has set a goal of
reducing GHG emissions 26% by FY2030 compared to the
FY2013 level. In addition, the UN adopted the Sustainable
Development Goals (SDGs)* in 2015.

• Promote corporate governance• Promote compliance• Promote risk management⇒ P. 39-44 (Corporate Governance)

Contributing to Access to Sustainable Energy

Contributing to the Creation of a Sustainable Society

The Meiden Group is working to achieve SDG Goal 7,“affordable and clean energy.” In our social infrastructurebusiness, we supply emergency and regular-use power
generating equipment, hydroelectric generating equipment,
and power transmission and distribution equipment toelectric power companies and factories in Japan andabroad. We also supply power quality stabilization systems,
power generation systems for renewable energy sources
like solar power and small-to-medium size hydro power,
as well as energy solution services such as smart grid
systems. Through these, we contribute to a stable electric
power supply.

The Meiden Group has been contributing to SDG Goal6, “clean water and sanitation” and Goal 11, “sustainable
cities and communities” by contributing to the creation of asustainable society through our businesses, products andtechnologies that support social infrastructure in the fields
of energy and water treatment.
We have also been contributing to Goal 12,“responsible consumption and production” through our
initiatives to reduce the environmental impact of businessactivities, and in recent years, we have been focusing on the
expansion of our products’ contribution to the environment
in order to contribute to Goal 9, “industry, innovation andinfrastructure” and Goal 13, “climate action.”
Related pages

P. 33-34 Environment

MEIDENSHA REPORT 201730

Foundation for Creating Value

Environment

E NVIRONMENT
Environment

Promoting Strategic Environmental Management

Initiatives to Enhance Corporate Value
Increase in sales
and profits /Reduction in costs

Creation of business
opportunities

Business risk avoidance
and reduction

Strengthening trust in
stakeholder relationships /brand image improvement

Increase employee loyalty /Build up technology,
experience and expertise

●

●

●

Expansion of products’
contribution to the environment
Reduction in the environmental
impact of business operations

●

●

●

●

Promotion of environmental
management

●

●

●

●

Improvement of employees’
environmental awareness

●

●

●

●

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

2. Reduce theenvironmental impact ofbusiness operations

Deployment of Action Plans

What wecan do forPlanetEarth

Mitigating
ClimateChangeConserving
biodiversity

Realize arecyclingsociety

Meiden Group Environmental Vision
A. Mitigating Climate
ChangeC. Conserving biodiversity

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

B. Conserving Resources(Building a Recycling Society)
D. Foster a corporate culture thathighly values the environment

3. Promote environmental
management

Develop to Action
Plans

V120 Plan
Strategic Targets

1. Expand products’
contribution to theenvironment

2. Reduce the environmental
impact of business
operations

Actions○ Expand products and businesses that
contribute to the environment○ Strengthen management of chemicals in
products○ Reduce greenhouse gas emissions

A. Mitigating Climate Change○ Promote reduction of waste discharge by 3Rs(Reduce, Reuse and Recycle)○ Eliminate hazardous chemical substances in
products

B. Realize a recycling society○ Promote environmental communication

3. Promote environmental
management

4. Improve employees’
environmental awarenessCorresponding“Environmental Vision”

C. Conserve biodiversity○ Strengthen value chain management○ Promote maintenance of biodiversity andmanagement of green zones○ Improve environmental education

Actions

V120 Targets (Fiscal 2017 Targets)

Contribute a 800,000 t/year reduction in CO2 emissions by ECBs

Expand products and businesses that
contribute to the environment

Disclose LCA data in each product category

Reduce greenhouse gas emissions

Energy consumption per unit of production (against that of fiscal 2014):
reduce by 3%
Total energy consumption (against that of previous fiscal year): reduce by 1%

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

Zero emissions*1 at 9 sites (production bases in Japan*2, with project sites ofEngineering Service Business Units and Construction Service Business Units)
Waste emissions per unit of production*3 (against that of fiscal 2014): reduceby 8%

Eliminate hazardous chemical substancesin products

VOC emissions: 80 tons or less

Respond to water risks (drought,
flooding, pollution, etc.)

Conduct water conservation initiatives: four main manufacturing sites*4

Promote value chain management

Support our suppliers to acquire EMS certifications: an accumulated total of
70 companies have acquired certifications

Promote maintenance of biodiversity andmanagement of green zones

Manage green zones giving due consideration to biodiversity: at the 4 main
manufacturing sites*4*1 Meiden Group definition of zero emissions: To achieve a non-recycling rate of less than 1.0% of the total volume of waste (including industrial waste, general waste, andsaleable waste, but excluding construction sludge, etc.) .
*2 Manufacturing sites in Japan: Numazu Works, Ohta Works, Nagoya Works, Kofu Meidensha, Meiden Chemical (Sagami Works), Hokuto Denko (Atsugi Works)*3 Waste emissions per unit of production (t/million yen) is the amount of waste disposed (t) for a given amount of production yield (million yen)
*4 Main four manufacturing sites: Numazu Works, Ohta Works, Nagoya Works, and Kofu Meidensha

Risk Management
The Meiden Group has appointed a Group-Wide Risk Management Committee (RMC) to respond cross-organizationally to risks tothe survival of our businesses. Working through the RMC, the Meiden Group Environmental Committee collaborates with various othercommittees concerned with compliance, security trade control, information security, quality, product technology, safety and health,pandemics, and more.
The Meiden Group identifies environment-related risks and opportunities and implements a variety of initiatives.

Responding to Environmental Risks and Opportunities
Government (political) Laws andRegulations

D. Foster a corporate culturethat highly values theenvironment

Targets that Express Our Environmental Vision
A. Mitigating Climate Change

C. Conserving biodiversity❶ Contribute to the reduction of CO2 emissions through the sale of energy-related
products and systems (i.e., products for renewable energy resources, etc.)❷ Promote environmentally conscious product design and reduce CO2 emissions in the
product life cycle.
❸ Reduce CO2 emissions in our production activities.

❶ Contribute to securing water resources through our water processing systems
business.
❷ Conduct risk management on chemical materials and promote the reduction of veryrisky hazardous chemical materials, as well as initiatives to find alternative materials
on a basis to reduce or replace harmful chemicals.

B. Conserving Resources (Building a Recycling Society)

D. Foster a corporate culture that highly values the environment❶ Promote the 3Rs (Reduce, Reuse and Recycle) of waste materials in the various
stages of the product life cycle.
❷ Promote zero emissions of waste products from our production activities.

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

31 MEIDENSHA REPORT 2017

Strategic Targets

1. Expand products’
contribution to theenvironment

SF6 emissions (against purchased volume): less than 3%

Action Plan (Fiscal 2015 – Fiscal 2017)

Initiatives

Major aspects ofcorporate valueenhanced

Fiscal 2017 Environmental Targets of Medium-term Management Plan V120

Phenomena(issues)
related toenvironment

Risks

Economy- ESG investment- Revision of Feed-in Tariff
Scheme for Renewable Energy - Price competition(low cost,- Deregulation of electric powerpremium pricing)industry, revision of power
supply structure- Introduction of carbon tax,
emissions trading- Energy conservation
regulations & standards(business operations,products)- Stronger regulations
on hazardous chemical
substancesSociety- Spread of
responsibility
to entire
value chain(upstream anddownstream)- Improvement of
employment /labor conditions

Technology

Reputation / Needs

Natural Environment- Lifestyle changes - Changes of- Enhanced(ecology-oriented)
temperature andefficiency of
precipitationelectric power
volumeconversion- Increase of local- Advancement
disasters (suddenof ICT, IoT
downpours,
technology
tornadoes, etc.)- Development- Ecosystemof new energy /irregularities
alternative energy(increase oftechnology
organisms thatcarry infectious
disease)• Short-term cost increases • Decline of product competitiveness • Decline of corporate value• Increase of local disasters ⇒ P. 33 (Water Risk Assessments)

Opportunities• Growth of new markets • Differentiation with eco-friendly products • Better business performance through environmental management• Responding to natural disasters

Carrying out
initiatives• Expand products’ contribution to the environment • Reduce the environmental impact of business operations• Promote environmental management • Deploy infrastructure-support products during disaster

MEIDENSHA REPORT 201732

Foundation for Creating Value

Environment

Development of Environmentally
Conscious Products (ECP)

TOPICS

Water Risk Assessments

Trends in CO2 Emissions (Japan)(t-CO2)

Automobile fuel

Energy usage

50,000A Meiden Green Product registered in fiscal 2016
Product: An IGBT high-frequency power supply for
induction heating

Water Risk Assessment Results for Regions Where
Production Bases are LocatedJapan

Southeast Asia

2.4

2.3

2.4

An induction heating power supply equipment piece (RFG)
used mainly in the production of electro-resistance-welded
tubes. It uses IGBTs for the main circuit power modules, andensures high efficiency and reliability.

Others
4.3

3.5

3.4
2.7

2.3

2.1

China / India
4.3

3.7

2.5

2.5

40,00042,31939,79239,26420,0002. Reduce theenvironmental
impact ofbusiness
operations

3. Promote
environmental
management

Reduce greenhouse gas
emissions

USA.

Germany

India

Shanghai,
China

Hangzhou,
China

Malaysia

Zhengzhou,
China

ThailandSingapore

Kofu

Ohta

NagoyaFiscal 2016 Targets

Achievement

Contribute a 800,000 t/year reduction in CO2emissions by ECBs

800,000 t/year〇

Disclose LCA data for new products

Disclosed LCA data for new products〇

Energy consumption per unit of production (againstthat of fiscal 2014): improvement of 2%

Increased to 13.4%

×

11.4%

×

Zero emissions*1 at 9 sites

Achieved zero emissions at all applicable locations〇

Waste emissions per unit of production*3 (against thatof fiscal 2014): Reduction of 5%

Reduced 7.2%〇

Eliminate hazardous chemical
substances in products

VOC emissions: 77 tons or less

70 tons〇

Promote value chain
management

Support suppliers EMS certifications: 27 supplierscertified

22 suppliers certified (49 cumulatively)△

Promote maintenance of
biodiversity and managementof green zones

Manage green zones in consideration of biodiversity:
at the 4 main sites*4

Conducted environmental conservation activities,
etc., at our 4 main sites○

Promoting Business that Contributes
to the Environment (“Eco-contributing
Businesses” (ECBs))The Meiden Group aims to benefit the environment by using
renewable energy like solar, wind and hydroelectric power andby supplying products and services that are more efficient andthus energy saving.
In fiscal 2016, we included more products in our calculationof environmental benefit (the expected curbing effect of CO2
emissions from products sold) and achieved a benefit of about
800,000 t/year, exceeding our target of 800,000 t/year.

33 MEIDENSHA REPORT 2017

Fiscal 2016 Results

SF6 emissions (of purchased amount): 3% or lessPromote reduction of waste
discharge by 3Rs (Reduce,
Reuse and Recycle)

39,185
1,850

1,860

37,43037,97940,40939,15838,26337,325

2011

2012

2013

2014

2015

2016

10,000Fiscal 2014
energyconsumption

Fiscal 2016 Environmental Target Achievement Status (Japan)

Expand products andbusinesses that contribute to
the environment

40,113

Energyconsumption

0.8%

＋

80

Solar power
Power conditioners

Inverters

Wind powersales businessElectrical components
for electric vehicles

20

2013 result 2014 result 2015 result

2016 result

58%

100%

Reducing CO2 Emissions in Our
Business Operations

40

2011 result 2012 result

Energyconsumption-2.3%

19,132KL

Fiscal 2016energyconsumption

18,695KL

Energy consumption(per unit of production)- 1%
Energy consumption(per unit of production)+13.4%TOPICS

Protecting Biodiversity

Previous product60

2010 result

Life Cycle CO2 Emissions(developed in FY2000)

CO2 emission reduction target – 800,000 t/year0• 40% reduction in energy consumption with our unique maincircuit time-sharing operation system• Improved reliability with high-power main-circuit modules(IGBTs)This product800,000 t/year
reduction in
CO2 emissions

100

Following are features of this product, with comparisons
to the previous design of a 900 kW product developed in fiscal
2000.

Fiscal 2015
energyconsumption

Aquatic organism impact study in rivers where
sewage- treated water is discharged

Reducing CO2 Emissions Caused by Products
CO2 emission reduction (10,000t-CO2)

FY

Energy Consumption and Rate of Improvement in Energy
Consumption Per Unit of Production (Japan)

quality. Since these bases do not use a large quantity of waterfor production, we consider that there is no great concern here.
The Meiden Group takes the optimal countermeasures foreach site based on the water risk assessment results.

Fiscal 2016 target achievement statuses were as follows.
The environmental contribution we made through our products achieved our target of 800,000 tons. Energy consumption in ourbusiness operations, which was greatly affected by fluctuating market conditions, declined in total, but we did not meet our target forenergy consumption per unit of production.
Although our results for SF6 gas diverged from our target, we will make effort to reduce our output, such as by installingcompressor/recovery equipment.

1. Expand products’
contribution to
the environment

1,857* The electric power CO2 coefficient used was the CO2 emissions coefficient proposed by the ElectricPower Council for a Low Carbon Society. For figures through fiscal 2015, we used the adjusted factor
for each fiscal year; for fiscal 2016, we used the adjusted fiscal 2015 factor.

* The numbers indicate the degree of risk from 1 to 5

Fiscal 2016 Initiatives

Actions

41,01530,00018,980KL

Strategic Targets

1,910

1,813

1,834

0

NumazuThere is a growing global concern in recent years about “water
risks” that could have a major impact on businesses, such asincreases in water shortages and heavy, local rains stemmingfrom population growth, global warming, and the like.
The Meiden Group had already been endeavoring to savewater and comply with wastewater requirements, but now wehave conducted water risk assessments at all of our production
bases. Identifying the potential water risks at each location helps
us consider more effective countermeasures. Using the “Water
Risk Filter,” a water risk assessment tool provided free of charge
by the World Wide Fund for Nature, we assessed the Group’s
production bases (13 bases in 8 countries).
The assessment results indicated that many of our
production bases face only low levels of risk. However, somebases in India and China are located in regions of relatively highrisk, with particularly high risks in respect to water volume andFY

The Meiden Group makes capital investments as planned,
such as the replacement of lighting and air conditioning facilities
with high-efficiency equipment, in order to lower greenhousegas emissions originating from energy consumption. We are
additionally making electric power usage visible and improving
equipment operation schemes, in particular practicing strict
energy consumption control for holidays and late-night hours.
In fiscal 2016, we were able to reduce total energy
consumption because slower business conditions limited
production equipment operation. In addition, we increased our
air conditioning equipment to improve the work environment,
stepped up quality assurance testing, and actively pursued
R&D activities, in particular for EV business. These nonproduction activities caused energy consumption to rise andthus our energy consumption per unit of production rose.
We will continue to promote efficient energy use with both
capital investment and operation management.

MeidenFacility
Service
Corporation
performs
operation and maintenanceof water supply and sewage
treatment facilities. Its work
is to provide “healthy water,”from producing water thatis safe and good-tasting toreclaiming water to protect
the natural environment andour lives.
The company is engaged in the operation andmanagement of the Katsura River Clear Streams Centerin Yamanashi Prefecture and performs a range of activities
for the environment, since the river, into which sewagetreated water is discharged, is used as a water supply forthe environment around the Katsura River and for residentsof Kanagawa Prefecture.
The company sets high voluntary targets for water
quality and ensures minimal impact to the ecosystem. To
check its performance, the company surveys the water
quality once a month, both upstream and downstream fromthe water-processing plant, monitoring whether discharges
are impacting the Katsura River based on changes in watertemperature, pH, clarity, DO, SS, COD, BOD, E. coli counts,
and other factors. Additionally, once every three months, thecompany investigates aquatic life around the discharge point.
Through its facility maintenance and management,
the company will continue to contribute to the protection of
the area’s biodiversity in order to protect the rich watersideenvironment and the verdant natural environment of the
Katsura River surrounded by rich satoyama land.

MEIDENSHA REPORT 201734

Foundation for Creating Value

Society

S OCIETY

V120 Targets (Fiscal 2017 HR Targets)
Major strategies relating to diversity

Human Resources Management
Initiatives to Enhance Corporate Value
Major aspects ofcorporate valueenhanced
Initiatives

Increase in sales
and profits /Reduction in costs

Creation of business
opportunities

Promoting diversity
management●●

Work style reform●

HR development●

Occupational safety
and health●Business risk avoidance
and reduction●●●

Basic Approach
As issues facing our customers and society as a whole
become increasingly complicated and unclear, it is importantto have personnel with the abilities to think flexibly and act
courageously, creating the value necessary to solve theseissues in order to enhance corporate competitiveness. For thisreason, we are determined to achieve sustainable growth byfocusing on employing and developing competent personnel
and creating an environment where each person can derive
pride and fulfillment from their work.
In order for the employees to maximize their abilities, it
is important to promote diversity management and createa workplace in which a diverse range of employees canparticipate with a healthy mind and body. Specifically, by
engaging as a group in initiatives such as achieving a work-lifebalance, and improving occupational health and safety, we will
enhance the corporate value for the entire group.

Promoting Diversity Management
Diversity vision
A company that continues to innovate by gathering
the experiences, ideas, and individuality of diverse
personnel with different attributes for “a more
prosperous tomorrow” and “for customer peace ofmind and satisfaction”
In order to fulfill our business strategy, we will promote
diversity as a contribution to the attainment of theGroup’s business strategy and the improvementof corporate competitiveness through the optimal
allocation of human resources and the operation ofvarious systems that leverage the individuality inherent
in diversity.

35 MEIDENSHA REPORT 2017

Strengthening trust in
stakeholder relationships /brand image improvement

Increase employee loyalty /Build up technology,
experience and expertise

●

●

●

●

●

●

●

●

Basic Policy

Removing bias towards organizations and people
with differences, and granting equal opportunities for
personnel to challenge themselves rather than giving
preferential treatment

Aims

1. We aim to be a company that allows contributions fromdiverse personnel
2. We aim to be a company that evaluates people basedon ability rather than personal attributes
3. We aim for a group of people that will overcome global
competition

Three reasons to promote diversity
There are three reasons why the Meiden Group promotes
diversity. The first is to “accelerate the implementation of global
management.” As global competition increases, there are
increasing opportunities for technological collaborations withother companies, foreign and domestic, as well as working
with people who have different viewpoints or abilities. Diverse
abilities and viewpoints must be integrated for increased
corporate performance, and the Meiden Group must perform
at its best in order to compete in the global market.
The second is a “declining working population.” It is said
that the working age population (ages 15 to 64) will drop to
approximately 50% (45.95 million people) by 2055 due tothe declining birth rate and aging population. We must allow
contributions from women, the elderly, and foreigners, rather
than focusing on male Japanese employees as we have donein the past. In order to do this, we must create a workplaceenvironment by introducing a new personnel system andchanging the workplace culture, so that all employees canutilize their abilities.
The third is the “diversifying customer base and consumer
market.” In the heavy electrical equipment industry, there is anincreasing number of overseas customers, and a contractionof infrastructure in the Japanese market, so both customers
and markets are changing significantly from those in the past.
In order to achieve further growth in the global market, we must
provide services that meet the needs of customers and create
new values; we believe that promoting diversity is essential tothis end.

Indicator

Fiscal 2016 results

Final year of V120 (Fiscal 2017)

Easing work regulations

Number of staff utilizing the option towork from home

14

At least 30

Promoting work-life balance(reduction in long hours of overtime)

Total actual working hours per year*1

2,016 hours/year

Less than 2,000 hours/year

Promotion and hiring of local staff

Proportion of Japanese staff at local
ASEAN companies

5% (excluding the regional HQ companies)

Up to 5%

Hiring of graduates and mid-career
personnel

Foreigners hired

1 person/year

3 people/year

Opportunities for female personnel

Percentage of female employees in
executive positions*2

6.84% (35 people)

8.52% (45 people)

Employment of people with disabilities

Employment rate (legally mandated
employment rate = 2%)

2.27%

2.40%

*1 Annual total hours worked: Actual hours worked, comprising official working hours plus overtime minus leave taken*2 Percentage of female employees in executive positions: The ratio of female employees in executive positions to the total number of female employees

Work Style Reform

HR Development

Rolling out “Smart Work V120”- Working towards a reduction in annual total hours worked -Diverse training programs

An employee survey showed that many employees havestrong opinions concerning matters that relate to long working
hours, such as “insufficient number of staff,” “consciousnessreform,” and “operations review.” As such, we have identified
the issue of long working hours as a business challenge. With
that in mind, during the three-year period of the V120 mediumterm management plan (fiscal 2015 to fiscal 2017), we havedeveloped the working hours reduction plan “Smart Work
V120,” which sets a target of reducing the annual total hours
worked in fiscal 2017 to less than 2,000 hours.

Basic policies of “Smart Work V120”
1. Take the issue of long working hours as a businesschallenge and address it in all the departments working
together
2. Uncover root causes by understanding the current
work operations in the workplace, and then implement
specific measures to deal with them
3. Reform the mindset by moving away from the thinking,culture, and attitudes of the past, which accepted
overtime as a matter of course
Based on the basic policies of Smart Work V120, we areengaged in initiatives to reduce the annual total hours worked,
including the improvement of business efficiency throughwork-style reforms, and increasing the rate of paid leave taken,
in addition to promoting and advancing employee health, aswell as enhancing the hiring of mid-career staff.
Specifically, we are conducting a campaign to shorten
working hours and encourage leave-taking as a means toreform employees’ mindset, and are engaged in initiatives toensure employees leave work on time, restrict overtime after
8:00 pm, and ensure at least five days of leave are taken every
three months. On the departmental level, various measures
are in place to address the issue thoroughly, for an increasein productivity, improvement of the efficiency of meetings, etc.
In fiscal 2016, we instituted the Committee for the
Reduction of Long Working Hours and promoted measuresthroughout the company, with the aim of reducing the numberof workers with their overtime exceeding the stipulated limit(80 hours/month) down to zero. Furthermore, we haveinstituted a “work finish-time declaration scheme” where
employees determine a daily finish time with their managers
and endeavour to leave work at the declared time. In addition,
we have visualized the annual leave taken for the month foreasy monitoring and are implementing a range of measures toallow employees to feel refreshed in mind and body.

We implement many training programs to encourage employee
growth in different aspects as employees, members of society,and professionals. Under the V120 Medium-term Management
Plan, we are working to enhance basic technical education anddevelop education systems for the purpose of providing a fullrange of education, particularly for those who desire to learn.
In fiscal 2016, we held eleven seminars, which wereattended by a total of 316 employees, for the purpose of offering
them a chance to acquire the basic technical knowledge of our
products, as part of our efforts in enhancing basic technicaleducation. Also, we held voluntary training sessions on thethemes of problem solving and strategy implementation, whichwere attended by 174 employees.
We offer a full range of training programs that support
each employee to learn and grow by themselves, in order todevelop human resources with the ability to implement andpromote our business strategies.

Basic technical training on products

Voluntary training

Occupational Safety and Health
The Meiden Group develops the “President’s Safety and
Health Management Policy” each year, and globally rolls out
occupational health and safety activities based on this.
In fiscal 2016, we continued to implement ongoingmeasures aimed at equipment and work management, global
deployment, and health management. In addition, in May
2016, we introduced “VR Safety Experience Equipment”
that allows people to experience mock workplace accidents
through virtual reality (VR) with CG contents. This educational
activity, intended to raise awareness and sensitivity against
dangers, uses head-mountdisplays or other equipment
and realistically recreates
workplace accidents thatare unsafe for employees toactually experience, such as
falling from a work platform,burns incurred when using agrinder, etc.
Safety training using VR
experience

MEIDENSHA REPORT 201736

Foundation for Creating Value

Society

Quality Management

Supply Chain Management

Initiatives to Enhance Corporate Value

Initiatives to Enhance Corporate Value

Major aspects ofcorporate valueenhanced
Initiatives

Increase in sales
and profits /Reduction in costs

Creation of business
opportunities

Business risk avoidance
and reduction

Strengthening trust in
stakeholder relationships /brand image improvement

Increase employee loyalty /Build up technology,
experience and expertise

Initiatives to improve quality

●

●

●

●

●

Understanding customers’
needs

●

●

●

●

●

Training programs for quality
management technology as
well as workmanship andtechnical skills●●

Major aspects ofcorporate valueenhanced
Initiatives

Increase in sales
and profits /Reduction in costs

Creation of business
opportunities

Business risk avoidance
and reduction

Strengthening trust in
stakeholder relationships /brand image improvement

Increase employee loyalty /Build up technology,
experience and expertise

Promotion of CSR activities
that involve the entire
supply chain and minimizationof procurement risks
Communication withbusiness partners
Enhancing groupprocurement systems

Basic Approach

Understanding Customers’ Needs

Basic Approach

Communication with Business Partners

The Meiden Group must continue contributing to the solutionsof customers’ problems by providing high-quality products andservices at all times, in order to continue to be relied on andchosen by customers and society. To do this, it is importantthat we implement the following three things: “initiatives toimprove quality,” “understanding our customers’ needs,” and“training programs for quality management technology as
well as workmanship and technical skills.” As our customers’
partner, the Meiden Group aims for all employees to listen to
customers, act quickly, and improve quality, in order to increasecustomer satisfaction.

In order to provide products and services that satisfy ourcustomers, we must take concrete actions to meet ourcustomers’ needs, such as proposing solutions, developing
new products, engaging in servicing, and initiating various
improvement activities. To that end, we collect and analyze
information, requests and complaints from customers, as wellas market trends, etc. on a daily basis in order to identify “ourcustomers’ needs.”
In order to respond to these customers’ needs,
such departments as development, sales, engineering,
manufacturing, and construction, which have direct contact
with customers, work to improve their activities through the
PDCA cycle, in which each department reviews and evaluates
their activities towards the year end, and creates an activity
plan for the next fiscal year based on their self-evaluation of
the current year.

It is important to build equal and fair relationships that allow
for mutual growth with suppliers, in order to provide better
products and services to customers consistently. On the other
hand, while procurement risks in the supply chain become
greater as globalization of businesses and business activities
continues, it is necessary to identify potential risks in advanceand to minimize them.
The Meiden Group is working to build good partnerships
with suppliers and a sound and strong supply chain, by
promoting “CSR activities involving the entire supply chain
with a minimization of procurement risks,” “communication
with business partners,” and “enhancing group procurement
systems.”

We believe that sharing awareness concerning CSR withcooperating business partners and working together with themwith the aim of promoting CSR activities throughout the supply
chain will lead to mutual prosperity.
The Meiden Group invites its main business partners tobiannual meetings held at each manufacturing site to explain
our production plans, where we provide information on theplans and current statuses of our businesses on both company
and departmental levels. In these meetings, we give awards
to those business partners who have provided particularly
exceptional cooperation in ourmaterials procurement.
The Meiden Group also
provides assistance to business
partners to build their environmental
management systems (EMS), in
order to promote the reduction of
Certificate awarding
environmental impact throughout
ceremony in the Numazu
the entire supply chain. We will district
continue providing support to ourbusiness partners in acquiring“Eco-Action 21” certification andregistration, and aim to spreadenvironmental
management
systems
andenvironmental
improvements throughout theFollow-up training in theentire value chain.
Numazu district

Initiatives to Improve Quality
Meiden conducts the following activities from the perspectivesof “do not let in,” “do not create,” and “do not let out” defects,
in order to improve quality. We improve the quality of productdevelopment and designs through mechanisms to incorporate
quality into designs, as well as multifaceted design reviews(DR).
In particular, we are strengthening activities relating to thequality of such development and design that has the risk of adefect with potential widespread influence.

MeidenActivities◯ = Particularly relevant

Partnercompanies

Development,
design, andmanufacture

Testing andinspection

Do not let in

Do not create

Do not let out

3H measures○○

DR quality improvement○○○

Backlog management○

Applying lessons frompast defects○

Implementing andcomplying with standards
and procedures

○

○

○

○

Auditing and instructing○

4M-change management○…

37 MEIDENSHA REPORT 2017

Training Programs for Quality
Management Technology as well as
Workmanship and Technical Skills
At the Meiden Group, we believe that it is important foreach employee to have a fundamental knowledge of quality
management in order to provide high-quality products andservices. Therefore, we implement training programs for
quality management technology at each level, such as for new
employees, young employees, and mid-level leaders. These
training programs are also conducted for staff who are notdirectly involved with work at manufacturing departments.
At the technology center adjacent to Numazu Works, we
conduct training programs for workmanship and technical skills
maintenance engineers. We raise engineers who contributeto the stable, safe, and efficient operation of customers’
equipment through practical training using real equipment.

Promotion of CSR Activities that
Involve the Entire Supply Chain and
Minimization of Procurement Risks
The Meiden Group practices CSR to maintain fair trade thatallows for mutual growth for material procurement. Basedon CSR activities that are promoted throughout all businessactivities, the Meiden Group requests that its business partners
and their suppliers promote CSR activities, including such
issues as “human rights, labor, health and safety, and theenvironment.” In order for them to understand our approach
to CSR supply chain management, we have prepared the“Meiden Group Supply Chain CSR Promotion Guidebook”*1
and distributed it to approximately 1,800 of our business
partners in Japan.
To promote CSR procurement, we also request for ourbusiness partners to cooperate in responding to a CSR survey(including environmental activities survey) so that we canunderstand their CSR activities and environmental activities
and eventually can minimize procurement risks.
*1 The Meiden Group Supply Chain CSR Promotion Guidebook is based on
the Supply Chain CSR Deployment Guidebook produced by the Japan
Electronics and Information Technology Industries Association (JEITA)(published in August 2006)

Training for quality management Technical training (high-voltage
technology
substation equipment)

Enhancing Group Procurement Systems
In fiscal 2014, we conducted educational programs for internal
procurement divisions at all the sites to ensure compliance andrisk management, following the implementation of the revised
basic purchasing agreement.
In addition, we hold periodic Meiden Group Procurement
Meetings as a forum toshare information, including
actual cases of assessment
purchasing and centralizedpurchasing, affiliates’ CSR
initiatives,
thus
forging
cooperation among different
sites to achieve global anddomestic expansion and Meiden Group Procurement
Meetingenhance compliance.

MEIDENSHA REPORT 201738

Foundation for Creating Value

Corporate Governance

G OVERNANCE

Meiden’s Corporate Governance Structure and Initiatives

Corporate Governance
Basic Approach
Under our corporate mission of “creating a more prosperous
tomorrow” and our corporate philosophy of providing the value“for customer peace of mind and satisfaction,” our group ofcompanies takes the basic stance that we maintain fair andsteady business activities with respect for people and theglobal environment, operate businesses focusing on profit
while constantly pursuing new technology and high quality, andendeavour to contribute to prosperity of society. In order toimplement this basic stance, we formulated the “Basic Policy

to Improve the Governance to Secure Fair Business Practices”
at the regular Board of Directors meeting held in May 2006
(this basic policy was later amended at the regular Board of
Directors meeting held in May, 2015, to reflect the revision of
the Companies Act).
The Company will work to further improve the efficiency
and fairness of management by promoting initiatives toenhance corporate governance in accordance with the
Corporate Governance Code.

Corporate Governance Structure: Supervision and Management and Internal Control System

General Meeting of Shareholders
Appoint / Dismiss

Appoint / dismiss

Board ofDirectors

Directors(includes two outside directors)

Audit

Board ofCorporate
Auditors

Appoint / Dismiss

Corporate Auditors(includes two outside auditors)

Oversee

Executive
Officers

Oversee Representative

Directors

Internal
Auditing Unit

Audit

Accounting Auditor

Audit

Supervise

Each Business Unit

MonitorCompliance Committee
Compliance Manager
Compliance Hotline

Internal reporting line (Compliance Office)External reporting line (law firm)

Outline of Corporate Governance Structure
Form of organization

Company with corporate auditors

Directors

Number of directors(outside directors): 10 (2)Term: 2 years

39 MEIDENSHA REPORT 2017

Corporate auditors

Number of corporate auditors(outside corporate auditors): 4 (2)Number of
independent officers

4 (2 outside directors and 2 outside
corporate auditors)

Meiden clearly separates important management decisionmaking and operational decision-making in the rules of theBoard of Directors and the rules of internal approval procedures,and ensures flexible executive functions.
The executive committee, comprised of representative
directors and executive officers, has been instituted forexecutive decision-making, and the committee decides
matters stipulated by the rules of internal approval procedures,
as well as matters that require discussions from a companywide perspective.
Also, we have established a management committee as
an advisory body that operates separately from the decisionmaking committee structure. The management committee iscomprised of the representative directors, who discuss andconsider matters relating to all aspects of management.

(1) Features of Institutional Design(2) Effectiveness Evaluation of theBoard of Directors
Meiden has a mechanism in place to conduct an analysis andevaluation of the effectiveness of the Board of Directors inorder to strengthen the supervisory function of the Board of
Directors.
In April 2016, all the directors and auditors, including theoutside directors and outside corporate auditors, conducted
an effectiveness evaluation of the Board of Directors and a selfevaluation, which was discussed by the members of the Boardof Directors in May 2016.

i. Items EvaluatedComposition and operation (resolution and deliberation
methods, etc.) of the Board of Directors, effectiveness of theBoard of Directors, self-evaluations, other opinions

ii. Outline of Analysis and Evaluation Results(a) Executive Officer System
Meiden introduced an executive officer system in June 2003
in order to streamline the Board of Directors so as to “speed
up corporate decision-making and enhance its supervisory
function.” At the same time, we strengthened the functionsof the Board of Directors and separated the “decision-making
and supervisory functions” and the “executive functions” thatthe Board of Directors used to have. The former functions
were assigned to the Board of Directors and the latter to therepresentative directors and executive officers to whom theduties were delegated by the representative directors.
Executive functions for business operations are carriedout according to resolutions and decisions of the executive
committee, which is a decision-making body for executivefunctions, and the executive directors and executive officers,
who have the authority to carry out executive functions, under
the supervision of the Board of Directors. In this way, business
operations are executed autonomously, flexibly, and swiftly.
Furthermore, with the Board of Directors having broadly
assigned authority to conduct executive functions to the
executive officers, directors and executive officers in chargeof operations are required to submit status reports on theexecution of operations to the Board of Directors at least once
every three months in order to ensure that the supervisory
function of the Board of Directors properly works.

(b) Composition of Directors
There are currently ten directors, and we believe that thisnumber is appropriate to ensure thorough consideration to
make appropriate and swift decisions to address the drasticallychanging business environment.
Furthermore, two of the ten directors are outside directors
who carry out a supervisory function for execution of operations
in order to strengthen corporate governance.
Meiden’s outside directors satisfy the requirements of
independent directors as stipulated in the rules of the Tokyo
Stock Exchange, and are registered as independent directors
at the Stock Exchange.

The results of the evaluation of each director and corporate
auditor were collected, and after deliberation by the Board of
Directors, it was determined that the effectiveness of the Boardof Directors is currently secure.
Although there was an evaluation that Meiden’s uniqueinitiative to organize the meeting for an exchange of opinions,as referred to below, is useful, there also were some opinions
that there is still room for improvement in the management of
the Board of Directors. We will therefore promote improvement
initiatives to ensure more active debates at the Board of
Directors meetings.

(3) Initiatives to Utilize Outside Directors
Meiden seeks active participation in management by outside
officers, in order to enhance the supervisory function of theBoard of Directors. As such, we are conducting the following
initiatives to ensure free and active debates.

(a) Initiatives at the Board of Directors
i. Circulation of Board of Directors Meeting Materials in
Advance
Meiden distributes meeting materials to the board members
in advance so that they are able to check the agenda prior toparticipating in Board of Directors meetings.
We accept questions, etc., in advance, if any are relating
to the agenda and prepare an explanation to be given at themeeting of the Board of Directors.

ii. Timely and Appropriate Sharing of Information
Besides the agenda for the meeting, Meiden provides briefings
on current topics relating to the company at meetings of theBoard of Directors, with the aim of timely and appropriate
sharing of information with outside directors, so that they canunderstand the status of the Company in a timely fashion.

MEIDENSHA REPORT 201740

Foundation for Creating Value

Corporate Governance

Board of Directors & Executive Officers as of June 30, 2017(b) Initiatives Outside of the Board of Directors
i. Introductory Sessions
Primarily for newly appointed outside directors and outside
corporate auditors, we provide opportunities for them tounderstand the Company’s business
The director, executive officers, or general manager
in charge of each business explains their business to theoutside directors and auditors, answers their questions andexchanges opinions with them. In fiscal 2016, we organized
five introductory business sessions and one factory tour.

ii. Meeting for Exchange of Opinions
Besides legally-required board meetings, we organize monthly
meetings for an exchange of opinions in order to best use
the knowledge of the outside directors and outside corporate
auditors.
In these meetings, participants vigorously exchange
opinions, mainly concerning matters relating to corporate
governance and the Company’s management issues andstrategy. The meetings also serve as preliminaries to discussmatters prior to passing resolutions at the Board of Directors.

(4) Corporate Auditors and the Boardof Corporate Auditors
Meiden is a company with corporate auditors. Each corporate
auditor (two of the four corporate auditors are outside corporate
auditors) performs his assignment of duties in accordancewith the auditing policies and the auditing rules for corporate
auditors stipulated by the Board of Corporate Auditors. They
communicate with directors, the internal auditing department,
and other relevant departments, attend meetings of the Boardof Directors and other important meetings, and investigate
the business and financial conditions, in order to audit theexecution of directors’ duties.
The Company also has Internal Auditors Office to assist
the Board of Corporate Auditors under the direct control of
the Board.

(5) Internal Auditing System
We have an internal auditing division under the direct control of
the President. The Internal Auditing Division conducts internal
audits to check the effectiveness and efficiency of business
operations, the reliability of financial reporting, the status ofcompliance with laws and regulations, and the maintenanceof assets, covering the Company and all Group companies athome and abroad.
In fiscal 2016, we promoted initiatives to improveeducational programs for internal control and internal auditing,to conduct internal auditing with a particular focus on selfsupervisory functions of line and staff departments, and toenhance internal auditing functions of overseas subsidiaries
and affiliates.

Directors’ Remuneration
Policy for Determining Remuneration

appropriate allotment to each director or auditor within the total
limit approved by the shareholders meeting, giving consideration
to whether the director has the right of representation, his title,
duties, and other factors. Directors’ bonuses are determinedby the General Meeting of Shareholders, giving consideration
to the results of the period under review.

Representative Directors

Amount of Remuneration for Directors and Corporate Auditors
Position

NumberRemuneration (million yen)

Directors (outside directors)
Corporate auditors(outside corporate auditors)

12 (3)

373 (12)6 (3)52 (8)

Notes 1. The amount of the above remuneration, etc., includes directors’
bonuses of 54 million yen.
2. The amount of remuneration paid to directors that concurrently
serve as employees does not include the amount of remuneration
paid to them as employees.

Junzo Inamura

Representative
Director, Chairman

When any shareholders wish a dialogue with the Company
that will contribute to medium to long-term improvement of
the Company’s corporate value, it is Meiden’s policy that theCompany’s management conducts the dialogue to the extent
reasonably possible.
The system is in place where a representative director
placed in charge of IR matters and an IR-dedicated department
conducts activities to enhance constructive dialogue withshareholders, including institutional investors, and to strengthen
external communication.

We hold results briefings twice a year in May and November.
We also hold business briefings in conjunction with the results
briefings, in order for participants to deepen their understandingof the Company’s business. For each occasion, we select one
business and conduct a briefing on the outline of that business,
its future prospects, etc.
We will continue to work to ensure an even fuller disclosureof information through results briefings, individual IR sessions,conferences, the website, and this report, etc., and continue toengage in dialogue with shareholders and investors.
Main IR Activities in Fiscal 2016WEB

Individual sessions

NumberJapanese investors

49

Foreign investors

45

Total

94

The materials for the results briefings and business briefings
are available for viewing. Please visit “Fact Sheet for AccountSettlement Briefing Session” under “Investors” on the
Company’ website.
http://www.meidensha.com/ir/ir_04/ir_04_03/

Representative
Director, Executive
Vice President- Record of Attendance
Board of Directors’ Meetings:
100% (14 out of 14)- Record of Attendance
Board of Directors’ Meetings:
100% (14 out of 14)

Tadayoshi
Machimura

Mamoru Sugii- Record of Attendance
Board of Directors’ Meetings:
100% (14 out of 14)- Record of Attendance
Board of Directors’ Meetings:
100% (14 out of 14)

Masamichi
Kuramoto- Record of Attendance
Board of Directors’ Meetings:
100% (14 out of 14)

TetsuyaMorikawa- Record of Attendance
Board of Directors’ Meetings:
100% (11 out of 11)

Outside Directors

Hiroyuki Takenaka

Results Briefings

Takeshi Miida

Director and Senior Managing Executive Officers

Dialogues with Shareholders
and Investors
Basic Approach and IR System

Representative
Director, Executive
Vice President

Representative
Director, President- Record of Attendance
Board of Directors’ Meetings:
100% (14 out of 14)- Record of Attendance
Board of Directors’ Meetings:
100% (14 out of 14)

Kozo Masaki

Yuji Hamasaki

Junji Yasui- Record of Attendance
Board of Directors’ Meetings:
92.9% (13 out of 14)- Record of Attendance
Board of Directors’ Meetings:
100% (11 out of 11)

Senior Corporate Auditors

Outside Corporate Auditors

Kazuyuki
Tanaka- Record of Attendance
Board of Directors’ Meetings:
100% (14 out of 14)
Audit & Supervisory Board Meetings:
100% (7 out of 7)

Taketora Ito
Newly appointed in June of 2017Managing Executive Officers

Executive Officers

Nobutoshi Ohashi
Kazumi Ikarashi
Michihiko Kato
Tomoyasu Hachiro
Satoru Kameyama
Norio Takekawa
Nobuaki Tamaki

Kazuhiko Furukawa
Teruhisa Abo
Noritaka Matsushita
Isamu Suto
Masayuki Iwao
Akio Inoue

Yoshiaki Shin
- Record of Attendance
Board of Directors’ Meetings:
92.9% (13 out of 14)
Audit & Supervisory Board Meetings:
100% (7 out of 7)

Mitsuru
Nawata- Record of Attendance
Board of Directors’ Meetings:
90.9% (10 out of 11)
Audit & Supervisory Board Meetings:
100% (5 out of 5)

Tatsuki Mochizuki
Hiroshi Toke
Masahiko Suzuki
Minoru Kaneda
Hisahiro Murashima
Satoshi Momenya

We separate basic remuneration and directors’ bonuses. Basic
remuneration is determined by the Board of Directors to ensure

41 MEIDENSHA REPORT 2017

MEIDENSHA REPORT 201742

Foundation for Creating Value

Corporate GovernanceCompliance
Compliance Policy and System

Overseas affiliate disaster
response offices

Area disaster response
offices

43 MEIDENSHA REPORT 2017

Consider response to individual major risks

Priority Initiatives in Fiscal 2016
We are engaged in an ongoing initiative to take specificmeasures against a diverse range of anticipated corporaterisks that may face the Meiden Group.

(a) Formulation of a Business Continuity
Plan (BCP)
We have started formulating a BCP with a model business in
preparation for a major disaster.

(b) Reinforcing Disaster Prevention
Initiatives
i. Company-Wide Committee for Disaster Prevention
Measures
Based on the lessons we learned from the Kumamoto
Earthquake, we have re-identified any possible issues with ourdisaster-prevention initiatives and have reviewed them.

Whistleblower System on Compliance
Meiden has a whistleblower system on compliance. This is toprevent illegal actions or misconduct and to solve problems as
early as possible if such illegal action or misconduct occurs.
For this whistleblower system, there are two routes: aninternal hotline system for compliance violations (Internal
Hotline System) and a whistleblower hotline for public interests(Public Whistleblower System). The Internal Hotline System

Company-Wide Disaster
Response OfficeCompliance managers

RMC Office, General Affairs, Legal Affairs

Works with each committee to address new problems andissues affecting more than one committee
New Influenza Strains
Emergency Response OfficeCompliance managers

Compliance training

Company-Wide RMCInformation Security Committee

Information Security Office

Persons responsible in departments
Person responsible for enacting
security measures(a) Analysis of Incidents andCountermeasures for Each Cause

Chairman (RMC)
Company-Wide RMCInformation Security Control System

We implemented two initiatives to reinforce the entire
Meiden Group’s information security in fiscal 2016.

President

Company and area safety
and health committees

Compliance Office

The Company-Wide RMC

Product and Technology
Deliberation Committee

Compliance Office

1. Establishing basic policies on major and cross organizationalrisks
2. Encouraging measures to prevent crises before they happen
3. Deciding company policies on the crises that are actually
happening

Company-wide Quality
Assurance Council

Compliance Committee

The Meiden Group understands that ensuring the security of
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, or theft.

Product Liability
Committee

Compliance Committee

The Compliance Committee conducts compliance training atour business locations throughout Japan, in order to maintainand improve awareness of compliance and internal control
systems while collecting opinions from workplaces.
Compliance training aimed at employees, including
Compliance Managers at each company in the Meiden Group,
provides updated information and education on complianceactivities, and an opportunity to exchange opinions with
the Compliance Committee. In fiscal 2016, we conductedcompliance training in 22 business locations, with a total of 1,146
participants. The Committee reported the updated informationon the compliance activities of the company, conductededucation on effective use of the internal whistleblower system,and taught creation of an open workplace culture, with a focus
on the general managers of each workplace. The Legal Affairs
Department gave further training with case-studies, aiming at
sales activities in compliance with the Anti-Monopoly Act andthe Subcontracting Act.
Also, in fiscal 2016, we started group-work education for
executive officers and managers on the theme of corporate
misconduct, in order to enhance internal control at thedivisional levels.
During such educational sessions, the Committee received
opinions, requests, and many questions from participants,
which we will reflect on during the Committee’s activities in thisfiscal year to make further improvement on our complianceactivities.

The Meiden Group has a system in place to control risk
management. The Director for risk management and CompanyWide Risk Management Committee (RMC) are appointed torespond to major cross-organizational crises. The RMC works
with each working group committee (WGC) and meets, asa rule, at least twice a year to maintain countermeasures tocritical risks threatening the business continuity of the Meiden
Group. They perform risk surveys to discover new risks andstudy measures against them.

Meiden Group
Environmental Committee

Meiden Group
Compliance System

Compliance Education

Strengthening Information Security
Management

Information Security
Committee

MeidenCompliance System* The whistleblower system is available to Meiden Group employees anddirectors as well as to employees and directors of business partners.

Operation of the Company-Wide Risk
Management Committee

Safety and Trade
Control Committee

Meiden Group Compliance System

is an internal measure to receive anonymous whistleblower
reports from employees, through a dedicated phone line,
letters, or emails to a dedicated address.
The Public Whistleblower System responds to both internaland external communications. External communications
are handled by a law firm. In fiscal 2016, there were fortythree consultations and reports regarding the Meiden Group
that were received through this system, and they were dealt
with as appropriate. The Compliance Committee studies
information that is brought to the above points of contact,
and, if necessary, consults with a lawyer for resolution. Those
who report problems are protected under the Whistleblower
Protection Act.

Compliance Committee

Meiden Group Code of Conduct (COC) defines that weshall strive to ensure compliance with applicable laws andregulations of our business-related matters, other applicablelaws and regulations at home and abroad, social and ethicalnorms, and its underlying spirit, and we shall conduct ourbusinesses with strong corporate ethics and good social
common sense.
Under this policy, the Meiden Group aims to sincerely
engage in activities to live up to the trust of customers andsociety. Directors, executive officers, and general managers
of Meiden and each Group company, play a central rolein promoting compliance in each of their workplaces, inaccordance with the Meiden Group Compliance Promotion
Rules.
Besides such workplace schemes, we also have aCompliance Committee set up in place, which lays down
policies concer ning compliance activities, organizes
compliance training, handles whistleblowers, and expresses
opinions and provides solutions to problems relating to arange of compliance issues that may arise.
Furthermore, in order to enhance the communication
and reporting system, we appointed a Compliance Manager
in each workplace to serve as a link between the Compliance
Committee and the workplace by reporting to the Committee
issues discussed and problems found in the workplace.
Thus, we are engaged in activities that promote compliance,
while ensuring communication among the Meiden Group
companies.
As a group-wide initiative for fiscal 2016, we developed
principles for conducting sales activities in compliance withoverseas competition laws, in order to enhance overseas
compliance, and promoted the implementation of internal
control systems at overseas group companies through theleadership of our controlling companies in China and theASEAN region.

Risk Managementii. Diversification of Drills
In addition to the disaster prevention drills that we havepreviously been conducting at each operation site, we haveadded new content that envisions the initial response in theevent of a disaster. We now conduct self-defensive first-aid/
lifesaving drills, safety confirmation drills through the safety
confirmation system, and communication drills between
disaster control offices (among the head office and regional
operations).

We conducted analyses and implemented measures tocover both aspects of hardware/software and humanfactors: the former includes data protection fromunauthorized logins, virus infections from suspicious
emails, targeted email attacks, etc. as well as and thelatter theft, loss, or mishandling of information devices.

(b) Sustainable Information Security
Measures
We had previously conducted initiatives based on “defense,”
but we are now working to implement sustainable security
measures in the areas of “prediction,” “defense,” “detection,”and “response.”
Specifically we are promoting hardware and software
measures, such as computer encryption, limiting USB
device connections, thin client implementation, IT resource
management, and the monitoring of unauthorized programs,
as well as conducting human measures, such as information
security education and suspicious email drills. We are rollingout both proactive and reactive measures on a group-widebasis for information security.

Group Code of Conduct Aimed at
Globalization
The Meiden Group has the “Meiden Group Code of Conduct”
in place and is working to ensure compliance with laws andother social norms. In addition, in fiscal 2016, we compiled thecorporate philosophy system and manuals into a booklet threelanguages in preparation for globalization.
Furthermore, we have released the Bribery Prevention
Policy and Fair Competition Policy in three languages, as
guidelines to supplement the aforementioned code of conduct,in order to observe laws and regulations relating to bribery
prevention and competition.
In order to fully disseminate these new policies andguidelines to the Group’s employees, we have made them
permanently available for viewing on the Group’s common
portal.

MEIDENSHA REPORT 201744

Outline of the Meiden Group

Outline of the Meiden Group

Area CodeSingapore

Company NameMEIDEN ASIA PTE. LTD.*

1

CapitalBusiness Entity

S$35.0 million

Regional headquarter in ASEAN; formulation of businessstrategies for the ASEAN region; legal affairs; humanaffairs; IT; maintenance; technical engineering services;materials; R&D

Singapore

MEIDEN SINGAPORE PTE. LTD.*

S$25.0 million

Manufacture and sale of transformers, switchboards, andcircuit breakers, maintenance and after-sale service ofelectrical equipment, electrical engineering and import/
export operations, and overseas procurement

Thai

THAI MEIDENSHA CO., LTD.

TB30.0 million

Electrical engineering, technical consulting, after-saleservice, and import/export operations

U.S.A.

MEIDEN AMERICA, INC.*1

US$21.0 million

System engineering, sales, technical consulting, and aftersale service of dynamo products

China

MEIDEN HANGZHOU DRIVE SYSTEMS
CO., LTD.*1

US$19.0 million

Manufacture of PM motors and other specialist electricaldevices, general purpose inverters, and assembly units forautomatic guided vehicles

Germany

TRIDELTA MEIDENSHA GmbH€78 thousand

Manufacture and sale of electric power / electric railroad
lightning arresters and lightning arrester accessories

Corporate Data as of March 31, 2017
Corporate NameMEIDENSHA CORPORATION

Capital¥17,070 million

Established

June 1, 1917
(Since December 22, 1897)

Consolidated Sales¥220,141 million

Representative
Director, President

Yuji Hamasaki

Consolidated Numberof Employees

8,474

Head Office

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

Consolidated
Subsidiaries

38 (18 in Japan, 20 overseas)1

Consolidated Subsidiary Companies as of March 31, 2017
*1. Specified subsidiary
Area CodeJapan

Company Name

Kofu Meidensha Electric Mfg.Co.,Ltd.*1

Capital¥400 million

Business Entity

Manufacturing and sales of motors

Share data as of March 31, 2017
Stock Listing

Japan

Japan

Meiden Plant Systems Corporation

Meiden Engineering Corporation¥400 million¥400 million

Construction services
Manufacture, sale, lease, installation, wiring and provisionof maintenance services (maintenance and inspection,
modification, repair, etc.) for electrical equipment,machinery and devices

Japan

M WINDS Co., Ltd.

¥330 million

Development, design, manufacturing, and testing of windturbine generator systems as well as related consulting

Japan

MEIDEN SHOJI Co., Ltd.

¥300 million

Sales of electric components

Japan

MEIDEN KOHSAN CO., LTD.

¥100 million

Sales of products and materials, and agent services of
insurance¥100 million

Strategic proposal and comprehensive management of
manufacture, sale, lease, installation, wiring and provisionof maintenance services (maintenance and inspection,
modification, repair, etc.) for electrical equipment,machinery and devices and provision of related education

Japan

Japan

Japan

Japan

Meiden O&M Corporation

MEIDEN CHEMICAL CO., LTD.

Meiden System Manufacturing Corporation

Meiden System Solution Corporation¥95 million

Another 22 companies

Insulating varnish and molded instrument transformer¥90 million

Manufacture and sale of switchboards, control panels,
and their components¥50 million

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

Tokyo Stock Exchange,
Nagoya Stock Exchange

Total number of authorized shares

576,000,000

Total number of issued shares

227,637,704(Including treasury shares of 756,384)

Number of shareholders

6

5

4

Distribution ofshares byshareholder
3

14,4832

1

1 Financial institutions

42.99%

2 Securities companies

3.28%

3 Business companies

21.35%

4 Overseas investors

12.18%

5 Individuals

19.87%
0.33%

6 Other

Major Shareholders
Number of Shares Held
(1,000 shares)

Shareholding Ratio (%)

The Master Trust Bank of Japan, Ltd.

22,027

9.71

Japan Trustee Services Bank, Ltd.

14,392

6.34

Sumitomo Electric Industries, Ltd.

13,156

5.80

Sumitomo Mitsui Banking Corporation

11,209

4.94

NEC Corporation

8,730

3.85

Sumitomo Mitsui Trust Bank, Limited

7,500

3.31

SUMITOMO LIFE INSURANCE COMPANY

5,307

2.34

Meidensha employees stock ownership

4,923

2.17

Mitsui Sumitomo Insurance Company, Limited

4,377

1.93

Trust & Custody Services Bank, Ltd.
(security investment trust account)

3,401

1.50

(Note) The shareholding ratio excludes treasury shares.

45 MEIDENSHA REPORT 2017

MEIDENSHA REPORT 201746

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

www.meidensha.com

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