sanden report 2009
Transcription
sanden report 2009
■Please direct inquires to: Administration Division, Tokyo Headquarters, Sanden Corporation 1-31-7 Taito, Taito-ku, Tokyo 110-8555, Japan Tel: +81-3-3833-1211 SANDEN CORPORATION Tokyo Headquarters: 1-31-7 Taito, Taito-ku, Tokyo 110-8555, Japan Tel: +81-3-3833-1211 Gunma Headquarters: 20 Kotobuki-cho, Isesaki-shi, Gunma 372-8502, Japan Tel: +81-270-24-1211 Structure of the Corporate Principles Aiming to Create “Global Excellent Companies” This is the organizational structure of the Company Principles that serve as the starting point for corporate activities in which the Sanden Group intends to engage as a group of “Global Excellent Companies.” The Meaning Behind Our Corporate Slogan "Delivering Excellence" ■ Founding Spirit Our corporate slogan alludes to our commitment to ensuring customer satisfaction by creating new value and developing and delivering the very best in products, systems, and services. “ Let Us Develop with Wisdom and Prosper in Harmony” “ Let us develop with wisdom and C O N T E N T S Editorial Policies… ……………………………………………………… 2 Contents … ……………………………………………………………… 2 Our Structure of Corporate Principles………………………………… 3 A Message from President……………………………………………… 4 ■ Corporate Overview Corporate Overview … ………………………………………………… 6 Automotive Systems Business… ……………………………………… 7 Vending Systems Business… ………………………………………… 8 Retail Systems/System Delivery & Maintenance (SDM) Business… ……… 9 ECO・Living & Environmental Systems Business………………… 10 Electronics Business/New Market Development… ……………… 11 ■ Special Feature Management Policies… ……………………………………………… 12 Contributing to Society with Environmental Technologies Based on Quality Power and Global Power Quality Power… ……………………………………………………… 12 Global Power… ……………………………………………………… 14 Environment… ………………………………………………………… 16 ■ Social Activities Corporate Governance/Compliance………………………………… 18 Relationship with Customers………………………………………… 19 Relationship with Employees………………………………………… 20 Relationship with Society… ………………………………………… 22 Relationship with Shareholders and Investors/Relationship with Suppliers… … 23 How Stakeholders Evaluate Sanden……………………………… 24 ■ Environmental Activities Environmental Management… ……………………………………… 26 Results of Environmental Preservation Activities… ……………… 28 Product Development Efforts (Eco Products)……………………… 29 Environmental Accounting…………………………………………… 30 Environmental Impact Reduction Efforts (Eco-Factories)………… 32 The Sanden Forest… ………………………………………………… 34 ■ Profile List of Directors and Corporate Officers/Financial Data… ……… 35 History of the Sanden Group………………………………………… 36 List of Sanden Business Locations… ……………………………… 38 Editorial Policies Sanden Report 2009 was edited in accordance with Sanden’s corporate philosophy, which is a principal foundation and framework for the Sanden Group’s efforts to be a“Global Excellent Companies.”Sanden Report 2009 reports information based on the following policies. ● The report covers the Sanden Group’s corporate social responsibility (CSR) and environmental management performance for fiscal 2008—or the period from April 2008 through March 2009— but it also includes some CSR and environmental management activities subsequent to that time period. ● The scope of data in the report includes Sanden Corporation as well as the rest of the Sanden Group companies. ● Important environment-related subsequent eventsare included as notes. Environment-related subsequent events are events that occur in the interval between the end of the fiscal year covered by the report and the actual publication date of the report that are likely to have an influence on environmental management in the next and/or subsequent fiscal years. The disclosure of important environment-related subsequent events provides supplemental information that may facilitate understanding of a company’s future environmental management situation. ● Environmental burden (impact) and environmental accounting data are compiled from the Americas, Europe, Japan, and the rest of Asia. The scope of data collection in“report organization overview,” “principal business bases,”and other articles may partially differ, as is explained in each article. Guidelines Used in the Preparation of This Report This report was prepared with reference to the Japanese Ministry of the Environment’s 2007 Environmental Reporting Guidelines and the Global Reporting Initiative (GRI*)’s Sustainability Reporting Guidelines Third Edition (G3). *GRI is an NGO established in 1997 for the purpose of establishing worldwide guidelines for corporate sustainability reporting. prosper in harmony”means that we Founding Spirit should use our intelligence in combining Management Principles our deve lopme nt and pione e r ing Management Policies ■ Satisfy our customers' needs with high-quality products Mid-Term Plan, Execution Plan ■ Contribute to the social and cultural improvement of the community STQM 《STQM SANDEN WAY》 through business activity ■ Build a company of which all are proud, through the efforts of selfmotivated employees ■ Corporate Philosophy ■ Vision Sanden’ s Corporate Philosophy comprises a preamble that serves as the starting point for all corporate activities of the "global excellent companies" of the revitalized Sanden Group and designates compliance as the basis for all operations, five universal values common to all peoples of all nations, and five general rules establishing the Company's basic stance toward its stakeholders. The Sanden Group should 1. Constitute companies that prosper, . Unify the vitality of all employees, and . Positively contribute to the prosperity and well-being of customers, shareholders, suppliers, and the communities throughout the world. GLOBAL EXCELLENT COMPANIES Corporate Philosophy Established: November 1, 2003 The Sanden Group (G-SDC) will observe the following 10 principles in full compliance with the laws and regulations, and rules. Basic Principles (Universal values shared by the global community) 1 Good Corporate Citizenship and Harmony with Society We will grow as good corporate citizens, trusted by society and in harmony with the international community. 2 Respect for Human Rights We will build a corporate culture founded on respect for individuals and human rights. 3 The Environment We will endeavor to preserve the environment in every aspect of our corporate activities to ensure that future generations will inherit our beautiful, irreplaceable earth. 4 Corporate Ethics We will conduct our corporate activities in a spirit of sincerity and fairness based on a strong sense of ethics. 5 Safety and Health We will enable our employees to achieve a healthy lifestyle by creating an environment that assures their health and safety. ■ Sanden Total Quality Management (STQM) STQM is the actions to accumulate daily efforts of creative improvement while improving the quality of each management staff and each result, in order to build the Company, which will prosper in the 1st century. ■ STQM SANDEN WAY Sanden's original set of convictions, values, and methods of the STQM SANDEN WAY as the cornerstone of own activities is shared, adopted, and practiced by everyone in the Sanden Group around the world. Basic Stance toward Stakeholders 6 Customers We will stand on the admired ability of engineering development and manufacturing, can offer products, systems and services, based on the QUALITY FIRST, that provide constant satisfaction to our customers around the world. 7 Employees We will grow together with our employees by creating an organizational culture that encourages free and vigorous communication imbued with a spirit of respect for humanity in line with our corporate culture of challenge and innovation. 8 Shareholders and Investors We will respond to the trust and expectations of our shareholders and investors by expanding the Sanden Group, enhancing our corporate value and making our management more transparent. 9 Communities 10 Suppliers We will grow together with our suppliers as business partners who provide our customers with the best possible products, systems and services on the basis of fair and transparent relationships. SANDEN CSR REPORT 2009 Corporate Vision ■ Management Principles We will respect regional customs and cultures around the world and contribute to the social and cultural development of the communities, which we are related with. Corporate Philosophy abilities to win prosperity for us all. ■ Handbook of Company Principles We have distributed this Handbook of Company Principles, which covers our basic approach to management, to all employees, and these precepts are put into practice in our daily business operations. SANDEN CSR REPORT 2009 Using “Global” and “Quality” to Earn Society’s Trust as a Company Centered on Environment-Friendly Operations Kazuyuki Suzuki, President Sanden Corporation a new management policy of striving to realize a new surge of Sanden’s management policies emphasize environmental corporate growth in core environment-friendly operations based protection initiatives. In 2002, we acted in accordance with on our fundamental strengths regarding “quality” and “global.” our fundamental concepts of “challenge,” “creation,” and To further enhance Sanden’s management quality, we have “contribution” by creating the Sanden Forest and the Akagi Since its founding in 1943, Sanden has made daily efforts Philosophy, which gives fundamental emphasis to rigorous legal developed the Sanden Total Quality Management (STQM) Plant on the southern slopes of Mt. Akagi in Gunma Prefecture to develop its business by providing products that customers compliance. We consider this an extremely important means of System and are implementing unique, Companywide quality to be a model for the coexistence of manufacturing plants and satisfy. After beginning with the supply of dynamo light ensuring we can dependably make contributions that benefit all reform activities in line with that system. In line with our STQM the natural environment as well as a symbol of Sanden’s identity generators for bicycles, we have steadily moved ahead in step our diverse stakeholders going forward. system, all Sanden Group employees throughout the world as an outstanding environment-consciousness company. with society’s needs by initiating the manufacture of such Based on our firm belief that operating in strict accordance are participating in diverse STQM activities—such as small- Going forward, we will sustain our contribution to the products as commercial freezer and refrigerator showcases, with our Corporate Philosophy is the way to carry out our group activities and the suggestion system. We are relentlessly creation of a sustainable society by developing environment- vending machines, car air-conditioning systems, automotive social responsibilities and thereby meet the expectations of our sustaining measures to increase our management quality and friendly products, working to create new kinds of value, and compressors, Eco Cute heat-pump water heaters, and stakeholders, we are continuously making concrete initiatives product quality power based on our STQM activities, and we are disseminating diverse kinds of information. communications-related electronics units. The advancement in this regard amid our day-to-day operations. Moreover, we confident that this approach will effectively promote the Sanden and leveraging of our core “cooling/heating + electronics” recognize that encouraging each of our employees to return to Group’s sustained growth. technologies have been the key force propelling the growth the basics in optimizing work methods and ways of thinking is of our manufacturing, marketing, and services operations. a key means of addressing the important tasks we are facing, Currently, we are further developing our overseas operations including the need to pursue high-value-added operations, Environment-Friendly Company through 53 business bases in 23 countries around the world. increase profitability, and strengthen management systems In September 2009, Japan’s Prime Minister Hatoyama through comprehensive fundamental structural reforms and the pledged at the United Nations to reduce Japan’s CO2 emissions need to promote corporate growth through the strengthening to 25% below 1990 levels by 2020. This reflects the fact that To promote corporate-social harmony as well as prosperity, of business competitiveness. We have already begun taking environmental protection is the most-important theme requiring we consider it important to proactively communicate with an measures to achieve these objectives. concerted action by mankind during the current century. As a even greater number of our stakeholders and build stronger manufacturer of automotive components and food distribution ties with those stakeholders. Accordingly, we are striving to equipment, Sanden recognizes it has a social responsibility listen very carefully to what our stakeholders are saying and to ■ Reinforcing the Base of Business Activities Since the autumn of 2008, the global recession stemming from financial problems in the United States has had an negative impact in every one of our business fields. The sharp deceleration of growth in automotive markets and that Sustains Growth ■ Global Application of STQM Activities We are intent on making daily progress in these endeavors so that people will consider environment-friendliness an essential characteristic of Sanden as well as a field in which we ■ Contributing to a Sustainable Society as an are conspicuously outstanding. We want people to say “Great Sanden.” and “Amazing Sanden”. ■ Communication with Stakeholders economies has led to a rapid deterioration of Sanden’s operating Our “Sanden Corporate Vision for the Early 21st Century” to help solve global environmental problems by reducing promote an ongoing dialog. This report provides information on environment, making fiscal 2008 (the year ended March 31, calls for the Company to proactively make contributions to environmental impacts associated with the product life cycles of how Sanden is contributing to society and the environment in 2009) more difficult than any other year in the Company’s all of our stakeholders while becoming “Global Excellent its own products. We are constantly reminding ourselves of the the course of its business operations. We will be very pleased if history. Amid these conditions, Sanden is striving to continue Companies” that earns the trust of society at large. In addition, need to give due consideration to the environment in all areas our stakeholders will take the time to read this report to increase to be a company worthy of society’s trust by reconfirming the to ensure the Company’s survival amid the harsh operating of our operations, as a means of helping future generations of their understanding of the Sanden Group’s activities and then commitment of each of our employees to Sanden’s Corporate environment we are facing this year, we have resolved to adopt people inherit a beautiful world. provide us with feedback regarding their opinions and wishes. SANDEN CSR REPORT 2009 SANDEN CSR REPORT 2009 Corporate Overview Overview Automotive Systems Business ■Automotive Systems Business SANDEN CORPORATION Sanden has taken a long and careful look at the evolution of the 25% Global Share of Car Airconditioning Compressors Corporate Overview Sanden has three main business fields. All our activities are based on the environment as the business domain. 25% conditioning systems that are friendly to both human beings and the natural environment. Sanden's compressors for use in car airconditioning systems have been adopted by many automotive manufacturers around the world, and Sanden is continuing to ■Living & Environmental Systems and Other Products ■Automotive Systems contribute as a leading company in this field. ,93 145,829 ■Vending & Store Systems Business Overview/Automotive Systems Business Consolidated Net Sales Established: July 30, 1943 Paid-in Capital: ¥11,037 million Number of Employees:8 ,750 (consolidated) 2,853 (non-consolidated) Net Sales: ¥216,690 million (Fiscal 2008) automotive and is pursuing the development of next-generation, air- 3.% In the fields of store equipment and vending machines, Sanden plays ■Commercial Store Systems an important role in supporting the distribution of food products. In 3,1 addition to the manufacturing and marketing of freezer and refrigerator showcases for use in retail stores, Sanden provides comprehensive 29.2 % support for retail stores by offering planning, design, installation, and Net Sales: 216,690 million maintenance services. In the field of vending machines, Sanden is moving forward with the introduction of IT capabilities and operating as a .2 % global leading company developing products that meet global standards. ■ECO・Living & Environment Systems Through the development of Eco Cute* products and other products, (Composition of Net Sales by Business) Sanden promotes the application of advanced technologies in the home, which is the foundation of our livelihood. We develop products Using Technologies for Environmental-Friendliness and Outstanding Comfort to Expand Global Business Providing Car Air-conditionings that Are Friendly to People and the Global Environment with four concepts in mind: pleasantness of the living environment, health, peace of mind, and energy conservation. Sanden's compressors for automotive air-conditionings are benefits that have led to a rapid rise in the share of compact and *“ Eco Cute”is the nickname given to CO2 natural refrigerant heat pump hot water supply systems that have been promoted by electric power companies and by companies manufacturing and marketing these units. highly dependable products that are incorporated in automotives mini-vehicles equipped with such systems. In addition, to sustain manufactured throughout the world. The Company offers diverse types reliability amid the extremely harsh operating conditions of construction Sanden has 53 business bases in 23 countries around the world and is developing its businesses on a global scale. of compressors―including Wobble plate, swash plate, and scroll types equipment, we have used our own original technologies to create high- ―that are ideal for various kinds of automotives―including conventional durability, high-capacity air-conditioning systems that have earned the internal combustion vehicles as well as hybrid and electric-powered unwavering confidence of customers worldwide. vehicles―and has maintained a high level of customer satisfaction in By providing products that are good to the global environment and this field. also promote improved human comfort, Sanden's Automotive Systems A n o t h e r p r i n c i p a l p ro d u c t i n t h i s f i e l d i s c o m p a c t H VA C Business is working to continue expanding the scale of its business. (heating,ventilating air-conditioning) systems*, which offer economical *HVAC systems include air-conditioning control units. Based on its fundamental policy of“ undertaking manufacturing and marketing operations in the vicinity of customers,”Sanden is aiming to be a global company with a presence in four principal markets―Japan, Asia/Australia, the Americas, and Europe. EUROPE AMERICA ASIA JAPAN AUSTRALIA Automotive Systems Business SANDEN CSR REPORT 2009 ■Electric Compressors ■Hybrid Compressors Designed to meet the needs of hybrid and electric vehicles, these compressors do not depend on engine-drive mechanisms, so they maintain optimal air-conditioning performance in line with conditions in vehicles even when the vehicle's engine is stopped. They contribute to increased comfort as well as reduced fuel consumption. Designed to meet the needs of hybrid vehicles,these are compact and lightweight units that incorporate DC brushless motors with high-performance neodymium magnets and realize sophisticated control through the application of control computers. ■Scroll Compressors ■HVAC Units Sanden's HVAC (heating, ventilating air-conditioning) units create pleasant driving spaces that place a high level of importance on human beings,the natural environment, and automotives. Backed by cutting-edge technology, the solid reliability and high quality of these units deliver a pleasant driving experience. Scroll compressors have been widely adopted by the world's automotive and home air-conditioning manufacturers because of their quiet operation and ultrahigh speed durability. Sanden took the lead in the development of this type of compressor ahead of other companies in the field in Japan and overseas. ■Externally Controlled Compressors The compressors realize smooth continuous drive through the use of external control methods and clutchless operation. Their finely controlled operation contributes to conservation of fuel. ■Air-Conditioning Systems for Construction Equipment These systems help to improve work efficiency by offering a pleasant environment in the cabin of construction equipment while also saving space and offering automatic operation. The fact that many construction machinery manufacturers have selected these Sanden-brand systems reflects the high level of technology and reliability of Sanden systems. SANDEN CSR REPORT 2009 Corporate Overview Vending Systems Business Retail Systems Business /System Delivery & Maintenance (SDM) Business ¥1 20 ¥1 20 ¥1 20 ¥1 20 ¥1 20 ¥1 20 ¥1 20 ¥1 20 ¥1 20 ¥1 20 ¥1 20 ¥1 20 ¥1 20 ¥1 20 ■Message Boards ■ICT-Compatible Vending Machines Ammonia (NH3) Brine Unit Brine Unit ▼ Brine Ammonia (NH3) refrigerant in brine unit cools and heats brine Ammonia (NH3) ■Electronic Money Systems ■Contents Distribution Systems Diverse Server Systems ■Coffee Machines ■ Vending Machine Information Transmission Systems These have capabilities for displaying FM character broadcasts and original messages on streaming message boards, employ the Do-Link! Electronic money system for remote control of vending machine sales and inventories, and can distribute information contents on video screens. ■ Soup Machines Buano Circulation of brine within stores → Showcase cooling → Store air conditioning and heating Refrigerated Showcase Retail Systems Bisiness Refrigerated Showcase Freezer Showcase System Delivery & Maintenance(SDM) Business Environmental Technologies for Commercial Spaces that Are Both People-Friendly and Global Environment-Friendly Using New Kinds of Environmental EngineeringOriented SDM Networks to Raise Environmental Quality Standards Nationwide Rather than merely manufacturing and marketing equipment, Sanden Since it began SDM business in 1, Sanden has been engaged in activities to cooperates with customers in diverse ways beginning from the planning meet needs through direct cooperation with customers while emphasizing the quality concepts―(1) additional energy conservation, (2) use of non-fluoron refrigerants, (3) use of stage of customers' product and store strategies so that it can augment the of work on the front lines of systems provision operations. To provide increased valued- and began marketing a fountain-type automatic juice vending machine. During the universal design, (4) contributions to society, and (5) network business. value that it provides. added from customers' perspectives, we make proposals on how to augment all kinds subsequent 4 years, Sanden's sustained efforts to develop and market products featuring In 200, Sanden developed world-standard Glass-Front Vendor Series (GFV) products In view of the increasing seriousness of environmental problems in recent of functions related to SDM networks, and these proposals have been widely embraced industry-leading and world-first technologies have made substantial contributions to designed to feature technologies on the leading edge of global progress in technology years, Sanden was quick to identify the potential of non-fluoron refrigerant by customers. After engaging in this business for 10 years, we are now moving forward its customers'businesses. As the number of vending machines being used in Japan along with high product quality in line with global standards. Plans call for expanding the technologies and develop commercial-use refrigeration/freezing/air- with measures to create new engineering systems that provide environment-related has surpassed 5.5 million, these machines have already become a part of the country's marketing of these products in Japan, the Americas, Europe, and Asia outside Japan. conditioning systems that use non-fluoron refrigerants. In the latter half of benefits. lifestyle infrastructure. To make a social contribution as a vending machine manufacturer In addition, since 2007, we have been expanding the applications of vending machine 200, we began marketing next-generation, environment-friendly systems Having consolidated Sanden Group maintenance subsidiaries and bolstered that emphasizes responses to the global environment, the social environment, and the technologies in the food service equipment field as a means of supporting the businesses that incorporate energy management technologies that utilize IT. associated business resources, Sanden is working to provide speedy service of our customers. Sanden has also been a leader in the provision of maintenance and nationwide during fiscal 200. The No. 1 offering in SDM business is engineering equipment renovation services that customers require in connection services related to systems provision. The core elements of the services we provide with their store network expansion and store scrap-and-build strategies. include design services that emphasize the selection of optimal functional components Going forward, we intend to support customers' 3R (reduce/reuse/recycle) along with installation and maintenance services. Since fiscal 200, we have given strategies while continuing to use people-friendly and global environment- priority to the evaluation of installation, maintenance, and cost aspects of non-fluoron friendly technologies to help create new kinds of commercial spaces. systems. We have upgraded energy conservation and recycling aspects of our systems Vending Systems Business Continuing to Provide New Value Globally Based on the Concept of “Energy & Labor Conservation” The vending systems business had its beginnings in 161, when Sanden developed customer environment, we are continuing to strive to provide new value based on five ■Changes in the Social Environment of Vending Machines 2009 2010 2011 Acceleration of heat-pump products Response to Global Environment Response to Social Environment Response to Customer Environment SANDEN CSR REPORT 2009 2012 ∼ Use of alternative energy sources Non-fluoron refrigerants (HC/CO2) 㨯Montreal Protocol New refrigerants (1234yf) Promotion of 3R (reduce/reuse/recycle) products Acceleration of reuse business Social contribution products (Life-Line, AED, LCD) Social contribution products through integration with other industries Multi-money infrastructure Acceleration of network business Operational efficiency Transition to universal operation methods Product expiry date management 㨯Kyoto Protocol Waste-less systems Health-consciousness, diversification Rising demand for genuine things, diverse foods, and global products Barrier-free needs Universal design Vending Systems Business/Retail Systems, Systems Delivery & Maintenance (SDM) Business Refrigeration/Freezing System Public Networks ■Powder Servers Inside Store Air-conditioning Information Collection Systems 〈Non-fluoron System Outline〉 Sanden has developed newrefrigeration/freezing/airconditioningޓsystems that usenatural refrigerant and help preserve the global environment by emitting zero greenhouse gas and zero substances that harm the ozone layer. Outside Store Air-conditioning /Heating System Refrigeration System ■Glass-Front Vendor Series (GFV) A new kind of vending machine designed to leverage products' visual appeal and be easy to use. ■Vending Machine ■Ultra-Environment-Friendly Vending Machines These incorporate CO2 non-fluoron heat pump mechanisms, LED lighting, and easy-to-use universal designs. 〈Example of Introduction〉 Convenience Stores ▲ Brine ¥1 20 ▼ Brine ■ 173 World's First Hot-or -cold vending machine ¥1 20 ▲ Brine ■ 161 Fountain-type vending machine ¥1 20 Corporate Overview ■Energy-conserving refrigeration/air-conditioning system using natural refrigerants ¥1 20 and have begun striving to expand the marketing of those systems during fiscal 200. 㨯RoHS regulations 㨯Low-carbon society Up grading Improvement Proposals for energy conservation 㨯Demographic graying 㨯Compliance and improvements 㨯Social contributions 㨯Network society 㨯Global society 㨯e-Japan strategy Customer Requests Creation Building Design, transportation, installation, and testing 㨯U-Japan strategy 㨯Ubiquitous society 㨯Diversification of tastes Keeping Maintenance Periodic inspection, periodic maintenance SANDEN CSR REPORT 2009 Corporate Overview ECO · Living & Environment Systems Business Electronics Business · New market Business Corporate Overview ■All-Electric Living & Environment System IH Cooking Heater Infrared Radiation Room Heaters Heat-Pump-Type Floor/Room Heaters EcoCute ■Restaurant Image ●Heat-pump-type systems are more economical than gas heating, so they can reduce users' utility expenses. 24-Hour Ventilation Systems ●Economical and environmentfriendly, EcoCute products are energy-saving water heaters that are always ready to supply abundant hot water. ●A single unit can ventilate an entire house. ■Store Image ECO・Living & Environment Systems Business Sanden delivers energy-conserving, high-efficiency living and environment systems. Sanden ' s ECO ・ Living & Environmental Systems business is efforts to develop equipment that is even more compact. expanding its operations centered on CO2 natural refrigerant systems Other products that have met with broad-ranging support from that incorporate heat pump technologies to reduce energy consumption customers include our 24 -hour planned ventilation system, which and CO 2 emissions. We are developing and marketing Eco Cute* facilitates energy conservation, and our sanitary infrared radiation room products, hot water supply systems for all-electric homes, as well heaters, which prevent heat shock. Going forward, we plan to move as heat-pump-type, hot-water-based floor/room heaters that have further ahead with the development of products that fully leverage the attracted a great amount of attention from home builders. In particular, potential of Sanden's heat-pump technologies. In this way, we intend we have been able to create Eco Cute products that are 10% or more to promote the broader spread realization of highly comfortable eco- lighter than previous models, and we are moving ahead with additional friendly lifestyles that conserve energy. *"Eco Cute" is the nickname given to CO2 natural refrigerant heat pump hot water supply systems that have been promoted by electric power companies and by companies manufacturing and marketing these units. ■Layout Electronics Business New market Business Using M2M Wireless Network and ICT to Accelerate Environmental Management Total Systems Planning for Stores, Communities, and the Environment Sanden ' s electronics business involves providing products and Sanden is concertedly drawing on its full range of capabilities to provide systems systems that enable the actualization of M2M (machine to machine) solutions in response to new needs related to its customers’efforts to create wireless monitoring solutions based on the most advanced information excellent commercial environments, customer-attracting environments, and spaces. communication technologies (ICTs.) We promote cost savings at each We are moving ahead with total coordinator operations that assist customers with client company by helping increase operational efficiency and expand proposals about products and systems related to restaurants and bars as well as the scope of paperless operations. Moreover, we enable high-quality with a full range of other services with respect to the creation and operation of such management by means of monitoring capabilities with outstanding commercial facilities. In these activities, we strive to provide food-related safety and performance regarding real-time and two-way functions. We are aiming peace of mind. Our ultimate goal in commercial environment business is to expand to help realize environmental conservation and a low-carbon society our operations and become a total systems planner regarding the creation of stores (reduction of CO2 emissions) on a global level. and restaurants, communities, and environments. ECO · Living & Environment Systems Business/Electronics Business · New market Business ●Infrared radiation room heaters make people feel warm even when their bodies are wet, so they are particularly good for installation in bathrooms and changing rooms. ●The lack of flames enables safer, worry-free cooking, and powerful induction heating (IH) capabilities support rapid cooking. Moreover,this kind of product is particularly easy to clean and maintain. Customer Administration Two-Way CDMA Network Mutual Compatibility FOMA Network Customers' ■Moderno Series ■Central Heating and Ventilation Systems These are ideal hot-water heating systems that make use of heat radiation and natural flow principles to maintain consistent temperatures throughout houses. In addition, Sanden's ventilating systems expel stale air from the toilet, utility rooms, and other areas of the house, thus keeping air inside the house clean. 10 SANDEN CSR REPORT 2009 ■Centralized Fuel Supply Systems These systems automatically supply fuel to dwellings in multi-unit housing, just as they receive electricity and gas, thus eliminating the need for tenants in individual units to obtain their own fuel supplies. The amount used by each unit can be confirmed in a single location. M2M wireless remote telecommunications adaptor. ・Interactive ■Sanden's Eco Cute Exhibit at the HVAC&R JAPAN Show ・Protocol conversion function ・AT command compatible function ・Global capabilities Application of employee discounts Application of student and professor discounts Provision of point-based services and members services Cashless Employee cafeteria/vending machines/stores Student cafeteria/vending machines/stores Cashless-transaction settlement CPA/Center-push service Companies Schools Stores CIPL service FOMA Service equipment Modem SoftBank Network SoftBank 3G GSM/GPRS Network Global Communication Service Employee ID Student ID Member Cards Customers' system server Dependable ■"Moderno" Wireless Communications Modems Compatible with a wide range of telecommunications methods, "Moderno" is a new product suitable for the ubiquitous network era. It is expected to come into wide use in connection with convenience stores, building air-conditioning management systems, electronic money applications, and other systems. Security Operational Administration Employment information/wage administration Library lending administration/ class attendance administration Certificate and credential administration Employee attendance/wage administration PC access restriction/facility enter/ exit monitoring Laboratory enter/exit monitoring Employee-only-area control IC card readers ■IC Card Systems We provide diverse IC card solutions for use in connection with cashless business systems and various associated transaction settlement equipment as well as with security systems, customer management systems, and other systems. SANDEN CSR REPORT 2009 11 Special Feature : Management Policy Contributing to Society with Environmental Technologies Based on Quality Power and Global Power We wil create corporate values with environment. Based on our original strengths of Quality and Global, we wil achieve further growth with“Environment”. Sanden is seeking to create“ Global Excellent Companies”in accordance with the Management Policy expected to be humankind's biggest theme of the 21st century, and it is unquestionable To create corporate values by the environment that stakeholders will be increasingly interested in environmental issues going forward. Environment Recognizing this situation, in June 2009, Sanden announced its Management Policy, The scope of small-group activities currently includes 996 teams STQM activities encompass policy development/PDCA and human resource throughout the world that are engaged in diverse improvement development activities as well as diverse improvement and reform measures. activities at individual Sanden Group facilities. In addition, every other The activities are undertaken for diverse groups ― including employees year, a world convention is held to promote global improvement grouped by occupational categories and management levels and employees activity programs and productive interactions among small groups. at individual facilities ― but all employees participate in one or more type of The location of the world convention is rotated among different STQM activity, and the aggregate result of the various kinds of activities is facilities. The most recent convention, in 2007, was held in France. STQM. Aiming to be a“ Global Excellent Companies,”Sanden is each day These activities have led to Sanden's receipt of the 1995 TPM pursuing activities designed to improve process quality and results quality Excellence Award and the 2002 TPM World Class Award. and thereby maintain steady progress toward the objectives of its medium- TOPICS term plan and action plans. ●In February 2009, Sanden Logistics Co., Ltd., won the gold Founding Spirit which is designed to realize the Company's corporate vision and thereby promote its corporate development in a manner that earns stakeholders' trust and inspires Quality Global stakeholders to expect outstanding performance. The policy's theme is“ Based on our (STQM) (Creation) Management Principles award at the 5076 th QC Circle Corporate Philosophy Kanto Region Corporate Vision Management Policies Mid-Term Plan, Execution Plan strengths in terms of quality power and global power, we will contribute to society by Improvement Examples Champion Convention for its presentation on CO2 reductions through the reevaluation of sales, distribution, and transportation methods. ■Sanden Logistics Receipt of Gold Award STQM SANDEN WAY ■Companywide Implementation of STQM Activities ●Sanden International (USA) Inc. (SIA) won the Top Excellence ■TPM Activities and Small-Group Activities Award among suppliers in the Sanden is moving forward with Total Productive Maintenance Technical Division of the Honda (TPM) programs aimed at maximizing production system efficiency Supplier Quality Circle (Small- Special Feature Part 1 and creating systems for preventing all kinds of losses before they Group Activity) Convention held in Quality occur. In addition to production departments, staff of development, Huron, Ohio, in April 2008. To promote corporate prosperity in the 21st century, Sanden is striving to thoroughly marketing, administration, and other departments at each facility upgrade its management quality and results quality. Each day, we are relentlessly create improvement activity teams that undertake small-group moving ahead with efforts to accumulate the benefits of creative reform measures. activities designed to realize continuous improvements in products, Management Policy / Quality Indirect Operations Reforms EMS QMS SQC generate and leverage dynamic business creativity. Improvement Proposals Sanden's“ global power ”stems from a network of 53 manufacturing, marketing, ・・・・・・・・・・ TPM and their many friends and associates. We are combining all these kinds of power to Small-Group Activities activities. MARP power”as well as the“ people power”associated with employees throughout the world Development Process Improvement years through the implementation of unique Sanden Total Quality Management (STQM) SMS expectations of customers throughout the world, this network has produced“ marketing SPS Sanden's“ quality power”is a corporate strength that has been built up over many STQM SPM and information bases in 23 countries. By earning the trust and responding to the TH&D creating environmental technology products.” Special Feature “ Sanden Corporate Vision for the Early 21st Century.”Environmental preservation is ■Companywide Implementation of STQM Activities ■SIA Receipt of Top Excellence Award systems, and services as well as upgrade quality levels. ■Progress in STQM emphasis on this approach as a means of promoting improvement in each Since its establishment, Sanden has continually emphasized the fundamental individual employee's work. In addition, in 1994, we initiated our unique STQM ■The Sanden Road new ideas based on the theme of“ people and communication.”The principle that corporate strengths stem from unifying the vitality of all employees activities, which are designed to reform each individual aspect of management The Sanden Road is the route ― running about 30 km from south Sanden Forest/Akagi Plant complex is the domestic manufacturing ―this is the“ a company is as good as the people it keeps”concept. Believing quality and thereby promote Companywide management quality reforms. to north ― that connects the Sanden Communication Plaza in Honjo, base for the Company's retail systems business, and it was designed to that education is the foundation of strong quality management capabilities, These measures led to our receipt of the Deming Application Prize in 1998. We Saitama Prefecture, to the Sanden Forest and Akagi Plant in Maebashi, be a model for the coexistence of manufacturing plants and the natural in 1992, we established the Sanden Communication Plaza to serve as a Total are currently implementing STQM activities globally, and this has enabled our Gunma Prefecture. environment. Within the Sanden Forest is the DUN-COYA mountain Quality Management (TQM) education facility. The quality management education overseas bases to earn Deming Prizes. In 2002, Sanden received the Japan Having made STQM the foundation of its corporate culture, Sanden cottage, where people can gather and discuss the dreams and programs of this facility have enabled employees to learn how to use TQM Quality Control Award, and in 2007, Sanden's chairman received the Deming has worked to achieve progress in quality management. These efforts ambitions that are the foundation for dynamic management leadership. methods to identify and rectify problems, and the programs have maintained Prize in recognition of his achievements in TQM implementation and promotion. have resulted in the creation of five facilities on the Sanden Road that The theme of“ people and communication”is found everywhere are concrete manifestations of the fundamental philosophy of STQM as along the Sanden Road. Introduction of TQC Activities 2006 2007 Completion of the Sanden Road 2002 Chairman Masayoshi Ushikubo received the Deming Prize 2000 Sanden International (U.S.A.) and Sanden International (Singapore) received the Deming Prize Implementation Award. 1998 TPM World Class Award receipt Japan Quality Control Award receipt Creation of corporate culture that seeks challenges and reforms TPM Special Award receipt Deming Award receipt 1995 Award for Excellence in Consistent TPM Commitment receipt 1994 TPM Excellence Award receipt 1992 Announcement of STQM introduction SANDEN CSR REPORT 2009 1991 The starting point of the Sanden Road is the Sanden Communication Plaza, which has demonstrated strong performance with respect to Establishment of Sanden Communication Plaza Kickoff of small-group activities programs 1989 Kickoff of TPM activities Start of QC instruction sessions 12 1986 TPM Activities STQM Activities well as STQM implementation processes. STQM and the Company's philosophy of strengthening itself through the“ a company is as good as the people it keeps”concept. Next is the Sanden Forest Akagi Plant DUN-COYA lodge Symbol of environment-friendly operations and harmony between business and the environment Forest DUNCOYA A place for discussing dreams, the world, and nature Yattajima Plant Global Mother Factory Yattajima Plant in Isesaki , Gunma Prefecture, which functions as the SGC mother factory for global manufacturing operations. Still further to the YP Sanden Global Center north is the Global Center, which is located at the site where Sanden was originally founded and serves as a global hub for the Sanden Technology development, history CP Group's technology development, manufacturing, quality management, Sanden Communication Plaza Education, quality management, human resource development STQM, and historical preservation operations. This center is a place for gathering people together and putting them to work to create ■The Sanden Road 2008 SANDEN CSR REPORT 2009 13 Special Feature Part 2 Global With manufacturing and marketing bases throughout the world, Sanden has power for contributing to its customers globally. Europe 1,350people North America 850people Japan Asia 7,850people 4,400people Special Feature Total 14,450people the Sanden Global Center of Technology(SGCT) The Sanden Group has R&D centers for technology development in four In September 2008, the Sanden Global Center opened in Isesaki, regions of the world―in Japan, Germany, France, and the United States. Gunma Prefecture, on the very site where our business was originally Playing a central role among these facilities is the Sanden Global Center of founded. This complex plays a central role in Sanden's global Technology (SGCT) within the Global Center. Developing a comprehensive operations as a facility emphasizing the cultivation of STQM-oriented range of leading-edge technologies required by Sanden's global corporate culture, quality management, technology development, operations, the SGCT is accumulating diverse technologies and know-how manufacturing capabilities, and historical heritage. The concept of as the Sanden Group's technology hub. Moreover, through cooperation the Sanden Global Center is to serve as a place for people to gather. with the Akagi Plant and Yattajima Plant, the SGCT is seeking to realize It is carrying out a crucial mission as a focal point for concertedly the R&D programs needed to overcome global competitive challenges and promoting the Sanden Group's global growth. make Sanden a“top runner in the field of environmental technologies.” ■Progress in Global Operations ― Germany-based Sanden Technical Centre (Europe) GmbH ― was more than 1,000 people, making continuous About 30 years after its founding, Sanden responded to an opportunity established in 2000. investments, and taking other measures. In to form a technical cooperation alliance with John E. Mitchell, Inc., related In response to the rapid expansion of China's automotive market, recognition of this, the French government to the compressors that are the core component of car air-conditionings, Sanden has since 2000 established additional bases in Shanghai, Tianjin, awarded the Legion d'honneur to Sanden's and the Company began its global operations after obtaining worldwide Shenyang, and Suzhou. Chairman in October 2000, and the Invest in marketing rights for such compressors in 1974. Sanden soon started Regarding retail systems business, Sanden began building overseas France Agency awarded Sanden with the Third creating overseas bases, beginning with the establishment of U.S.-based capabilities with its 1988 acquisition of U.S.- based Vendo Company, the Japan-France Investment Award in November Sanden International (U.S.A.) Inc. (SIA), in 1980, and Singapore-based second-largest vending machine manufacturer in the United States. In 2006 . Subsequently, Sanden has arranged Sanden International (Singapore) Pte. Ltd. (SIS), in 1982. 1989, Sanden created Thailand-based Sanden (Thailand) Co., Ltd. (STC), for annual interpersonal exchanges involving Subsequently, based on its fundamental concept of conducting thereby establishing an overseas vending machine manufacturing network France and its various regions. manufacturing operations in locations near its customers, Sanden took with bases in the West and Asia. In 2000, this network was expanded with steps to set up manufacturing and marketing bases in various parts of the the founding of Sanden Shanghai Refrigeration Co., Ltd. (SSR,) which is world, creating France-based Sanden Manufacturing Europe S.A.S.(SME), positioned to meet needs in China's growing vending machine market. in 1995, and Poland-based Sanden Manufacturing Poland Sp.z.o.o.(SMP), Currently, Sanden has 53 bases in 23 countries around the world, in 2004 . Moreover, Sanden's first overseas technology R&D facility including 23 manufacturing facilities. ■Friendly Exchanges with France In 1995, Sanden established its first Europe- b a s e d m a nu f a c tu r in g c o mp a ny ― S a n d e n Manu fac tur ing Europ e S. A .S. (SME ) ― in France's Brittany region. By 2008 , Sanden's compressor manufacturing volume surpassed seven million units per year, giving the Company an important position in the European market. In France, Sanden has earned recognition TOPICS ●Promoting Local Capabilities for Product Development and Manufacturing Global Power *Figures represent numbers of employees as of March 31, 2009, and include non-full-time employees of subsidiaries and affiliates. ■Opening of the Sanden Global Center In fiscal 2008, Sanden responded to market growth and intensifying competition in China by establishing a local die- casting plant as a means of strengthening quality. In addition, to promote the expansion of business in Latin American markets, the Company converted a Mexico-based automotive component company into a wholly owned subsidiary. Aiming to expand our share of India's growing automotive market, we are constructing a new factory in India to increase our car air-conditioning compressor manufacturing capacity to 1 million units per year. as a member of local society by employing ■Die-casting plant in China (A scene from the plant-opening ceremony) ■Conversion of Mexico-based automotive component company into a wholly owned subsidiary (A scene from the ceremony to announce the conversion) TOPICS ●Cooperative Development Operations of Group Companies in Diverse Countries In December 2008, Sanden became the first to launch a global standard model vending machine―the Glass-fronted Vending Machine―in the Japanese market. While Sanden is the only company to develop and manufacture vending machines in Japan as well as elsewhere in the Asia, Americas, and Europe regions, it has previously undertaken independent development, manufacturing, and marketing operations in each region to provide vending machines that meet special local needs. In August 2007, Group retail systems business companies based in various countries formed a unified marketing team to undertake cooperative product development activities aimed at creating 2007 2008 Mexico Automotive component company converted into a subsidiary 2005 China Car air-conditioning compressor die-casting factory 2004 China Showcase factory 2000 China Car air-conditioning system factory 1995 Poland Car air-conditioning compressor factory 1989 Germany Technical center 1988 France Car air-conditioning compressor factory 1982 Thailand Showcase factory SANDEN CSR REPORT 2009 United States Acquisition of Vendo Company 14 Singapore Car air-conditioning compressor factory United States Car air-conditioning compressor factory 1980 vending machines based on new perspectives. The team has already created the first global standard model beverage vending machine. Featuring reduced power consumption, the global standard model is highly environment-friendly, as it was designed with due consideration to 3R performance. Plans call for the marketing of the new global standard model vending machine to commence in Europe from June 2009, in Asia from July 2009, and in the United States from 2010. ■Cooperative vending machine development involving numerous Group companies SANDEN CSR REPORT 2009 15 Special Feature Part 3 Environment Based on its original strengths regarding“quality”and “global,”Sanden is focusing on the “environment”as a key means to promote an additional surge of corporate growth. Making a Contribution by Creating New Value Through the Development of“Environmental Friendly Products” In June 2009, Sanden began supplying Germany-based Daimler interior heat-recycling method that does not allow excess heat within vending machines to escape uselessly, and this has enabled significant additional energy conservation. In the past, Sanden worked to increase the energy-conservation performance of its In addition, Sanden has been an industry leader in beginning the mass production of vending machines by equipping them with capabilities for learning how to optimize fan vending machines with LED illumination technology. This has enabled the development control functions in line with trends in the volume of products vended and by equipping of ultra-environment-friendly models that conserve an additional 5% of the electric them with vacuum-insulation materials. As a result, our fiscal 2005 models attained the power consumed by previous models. 2005 top-runner targets of Japan's Ministry of Economy, Trade and Industry (METI). With the exception of certain specialized models, all our fiscal 2010 model vending Sanden's fiscal 2009 models feature heat-pump technology and additional advances machine products will incorporate heat pumps. Aiming to help resolve global in high-performance insulation structures, making them able to conserve 41% of the environmental problems, we intend to continue promoting the development of new electric power consumed by fiscal 2005 models. Our heat pump technology employs an environmental technologies going forward. AG with electric compressors for incorporation in the air-conditioning △41% △46% 100 system of Daimler's first hybrid car, the Mercedes Benz S400 Hybrid. 80 The S 400 Hybrid features the luxur y, safety, and drivability 60 characteristics of other S-class Mercedes Benz models along with Special Feature ■Beginning the Supply of Electric Compressors for Mercedes Benz Hybrid Cars ■Environment-Friendly Vending Machines (Heat Pumps and LED Illumination) 40 energy conservation. By providing the core component of the S400 20 ■An electric compressor 0 Hybrid's air-conditioning system ― an electric-powered compressor Fiscal 2005 models Fiscal 2009 Fiscal 2009 LED models models ■ Reduction of electric power consumption with outstanding energy conservation performance ― Sanden is consumption and CO2 emissions. helping further increase the car's added value. Plans call for Sanden to supply electric compressors for all the The electrically driven compressors being supplied for the S 400 Mercedes Benz S400 Hybrid models that are manufactured. Hybrid differ from ordinary belt-driven compressors in that they do To position itself to supply advanced, high- qualit y car air- not depend on the car engine to operate, so they can maintain optimal conditioning compressors going forward, Sanden is strengthening air-conditioning performance in line with conditions in vehicles even its product development capabilities that contribute to environmental when the vehicle's engine is stopped. As a result, they have special protection as well as progress in the automotive manufacturing characteristics, including those that contribute to reductions in fuel industry. ■ Vending machine LED illumination ■ Heat pump refrigeration unit Environment diverse environmental technologies that increase efficiency and ■ Interior heat-recycling method ■Progress in Environmental Operations The revised Sanden Environmental Charter was introduced at all domestic ■Development of Non-Fluoron, Energy-Saving capabilities for providing a full array of services ranging from development through In 1993, we established the Sanden Environmental Charter as a voluntary plan. and overseas affiliates to serve as a clear expression of the Sanden Group's Refrigeration/Freezing/Air-Conditioning Systems maintenance. In 1997, we revised our Environmental Charter in light of the establishment of fundamental approach to environmental activities. By leveraging its existing Sanden is moving ahead with R&D programs aimed at finding ways to realize Having developed unparalleled non-fluoron, environment-friendly store systems, we ISO 14001 as the international standard for environmental management systems strengths in“ quality”and“ global,”Sanden is seeking to realize corporate comprehensive reductions in the environmental impact of convenience stores and other are engaged in activities aimed at providing our customers with benefits related to both in 1996 and the importance of corporate environmental preservation activities. growth while making the“environment”a key focus of its operations. facilities operated by its customers. By employing refrigerants with zero destructive environment-friendliness and economic performance. impact on the ozone layer and developing energy-saving equipment, and advancing with the development of such technologies as those for coordinating the operations of that equipment with store air- conditioning systems, we have been able to create environmentfriendly store systems. Having been developed in conjunction with the Non-fluoron, LCA/QFDE method introduced to evaluate environmental impact of product life cycles Akagi Plant―symbolic of industry-environment harmony―began operatin “Advanced, Excellent Plant Award.” received (Akagi Plant) Japan Greenery Research and Development Center Chairman's Award received (Akagi Plant) Chairman's Award of Energy Conservation Center, Japan (ECCJ) received (cup-type vending machines) Excellent Energy Conservation Equipment Award and Chairman's Award received from Japan Society for the Promotion of Machine Industry (Retail Systems) Introduction of material flow cost accounting Top environmental finance ranking received (The Development Bank of Japan Inc.) Second place ranking received in Trophees des technologies economes et propres of the French Environment and Energy Management Agency Introduction of environmental efficiency indexing 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 METI Minister's Award in Excellent Greenification Plant Award program received from the Ministry of Economy, Trade and Industry (Akagi) First Environmental Report issued Zero-emissions status attained at manufacturing facilities 1997 Asahi Corporate Citizen Award received (Akagi) Introduction of environmental accounting ISO 14001 certification obtained for Tokyo Head Office and all domestic sales offices Ozone Layer Protection Award Excellence Award received from Nikkan Kogyo Shimbun newspaper 1996 Malaysian Prime Minister's Hibiscus Award received for outstanding environmental protection performance Start of zero-emission fluoron recovery activities SANDEN CSR REPORT 2009 ISO 14001 certification obtained for Gunma Headquarters and the Kotobuki Plant 16 Prize received from the U.S. Environmental Protection Agency (the EPA Prize) for contribution to protecting the ozone layer Sanden Environmental Charter established Energy Efficiency Vanguard Award received (vending machines) 1993 2008 Energy-Saving Freezing/Air-Conditioning System Project of Japan's New Energy and Industrial Technology Development Organization (NEDO), these systems have undergone repeated, full-scale pilot testing since 2005. This pilot testing― employing a test facility that contains a full-scale convenience store ―has tested conditions in the environment within the store as well as changes associated with store locations and special regional and seasonal conditions. The marketing of non-fluoron, environment-friendly systems is scheduled to begin from the latter half of 2009, and plans call for additional efforts to upgrade the appeal of these systems and broaden the lineup of these systems that are marketed. In our System Delivery & Maintenance (SDM) Business, we have conducted numerous studies aimed at reducing customers' facility life-cycle costs with reference to such factors as market-related installation environments, system performance, and the ease of installation and maintenance processes. Based on those studies, we are building ■A large-scale testing facility containing a full-scale convenience store SANDEN CSR REPORT 2009 17 Social Activities Corporate Governance/Compliance Social Activities Relationship with Customers The Sanden Group believes that effectively implementing its Corporate Philosophy is the best way to carry out its corporate social responsibility (CSR) in line with the wishes of its diverse stakeholders. This report provides information on CSR activities with respect to each item of the Basic Stance toward Stakeholders within the Group's Corporate Philosophy. The Sanden Group will observe the following ten principles in full compliance with laws and regulations, and rules. Corporate Governance ■Fundamental Policies Sanden's Founding Spirit,“ Let Us Develop with Wisdom and Prosper in Harmony,”has fostered a corporate culture that has sustained its dynamism. ■Organizational Units and System Employing the“ company with auditors”model based on Japan's Corporate Law, Sanden has created a corporate governance system that includes a board of directors, corporate auditors, a board of corporate auditors, and an accounting auditor. In 2003, we established our Corporate Philosophy--which includes“ Basic The Board of Directors has 12 members, including one outside director, while Principles (Universal Values Shared by the Global Community)”and“ Basic the Board of Corporate Auditors has five members, including four outside corporate Stance toward Stakeholders.”Both in Japan and overseas, we are relentlessly auditors. and proactively striving to increase our corporate value while also further improving compliance performance throughout our business operations and The chart below shows Sanden's corporate governance and internal control organization units and their interrelationships. Our corporate governance systems reflect the nature of our operations, history, culture, and other defining characteristics of Sanden. We have examined from many angles different ways to establish a corporate governance system that is best suited to the Sanden Group. The result is our current management structure and corporate auditor system, which we General Meeting of Shareholders Appointment/ Removal Appointment/Removal Reports Reports Board of Directors 12 directors, including one outside director Audit Board of Auditors Appointment/Removal/ Audit making and the execution of business operations. Furthermore, we have recruited an external director and external auditors to make our management oversight functions more effective. For more information about Sanden's corporate governance, please visit http://www.sanden.co.jp/english/company/governance.html. Approval of appointment /Removal Reports Full-time Directors (12) Corporate Officers (19, including 8 directors) Establishment and execution of management strategies Sanden positions legal compliance as the top priority among management tasks. To ensure thorough compliance, the Administration Division has been made the unit with overall responsibility for compliance systems, and each corporate department and business unit has a compliance officer and manager. In addition, Sanden has prepared its Handbook of Company Principles and is implementing education programs for each level of officers and employees. We have established a system for submitting reports involving any compliance problems that are discovered. Internal Auditors 18 Audit Audit Based on the Akagi Plant manager's strong leadership, reform measures This has enabled us to realize an outstanding record of development, by managers at the plant were initiated in April 2009 . Overseen by four manufacturing, and service activities that satisfy customer needs. subcommittees focused on quality reform, development reform, manufacturing Currently, all Sanden Group manufacturing facilities worldwide have management reform, and manufacturing technology reform, the activities are either ISO 9001 certification or TS 16949 certification. being implemented in a cross-functional manner. They have the goal of halving the In general, many corporate reform projects with specified targets and goals Europe ISO 9001 : 1 TS 16949 : 2 China/Asia Japan (Inc. Subsidiaries) ISO 9001 : 11 TS 16949 : 1 ISO 9001 : 2 North America ISO 9001 : 2 TS 16949 : 1 TS 16949 : 13 “ challenge”and“ innovation”to foster the development of leadership skills on the parts of employees who think and take action on their own initiative. ■Number of Sanden Group Companies with ISO 9001/TS16949 Certification ■Exhibition of Non-Fluoron Systems at International Event ■Technology Exchange Meetings Internal audits Manages execution of business Operating Divisions, Plants, Head Offices Subsidiary and Affiliate Companies ■Establishing/Strengthening Internal Controls To accelerate the building of the Group's internal control systems, in April 2008, Sanden launched its Internal Control Project, which has implemented activities that surmount borders between individual departments and business units. In December 2008 , Sanden exhibited its non-fluoron, natural Reflecting its continual efforts to upgrade its technological power and refrigerant refrigeration/freezing/air- conditioning system at the respond to customer demands, Sanden organizes technology exchange Pollutec international exhibition of environmental equipment, meetings each year. In addition technologies, and services in Lyon, France. Sanden's selection to to facilitating the proposal of participate in Pollutec reflects the 2007 adoption of its system by the new products and systems to Non-fluoron, Energy-Saving Freezing/Air-Conditioning System Project customers, these meetings of Japan's New Energy and Industrial Technology Development a r e ve nu e s fo r m e a s u r e s to Organization (NEDO). solve technological problems Our booth at the international event attracted numerous and diverse visitors ― including consultants; local governments seeking In November 2008, we created our Internal Control Handbook, which includes direct investments; refrigeration, freezing, and air-conditioning a compilation of information on fundamental compliance issues, and this technology specialists; people associated with the construction handbook was distributed to all Group bases. In addition, we have worked to industry; and the mass media ― and generally elicited a powerfully create a compilation of compliance-related rules and regulations. Going forward, positive response. we will strive to ensure that rigorous compliance performance is maintained in daily operations and management performance. ■ Compliance Education The compliance system is functioning effectively. During the fiscal year To further strengthen internal compliance, we have implemented a variety under review, the system handled a certain number of consultations and of training programs, such as programs tailored for individual employee levels, reports and was able to contribute to the resolution of associated issues. individual departments, and individual themes. Approximately 400 people have Important compliance issues are handled by such units as the Board of participated in these programs. Training also includes information on new and Directors and the Management Committee, which conduct deliberations on revised laws and regulations to ensure that actual operations are in rigorous the issues and issue reports. compliance with such laws and regulations. SANDEN CSR REPORT 2009 at all our manufacturing facilities based on the ISO 9001 standard. the activities are ultimately designed to leverage the core STQM concepts of Furthermore, we have created internal compliance problem reporting hot lines (two linked to internal parties and two linked to external parties). 1993 we began building customer-oriented quality management systems quality-cost-delivery-development (QCDD) initiatives. Akagi Plant are special in that they entail involvement by the entire plant and all Compliance ■Fundamental Policies strengthening the capabilities of the Akagi Plant, which is a hub of the Company's its organizational units. Rather than merely seeking to attain numerical targets, Chair Management Committee Having made it a corporate policy to relentlessly work to further increase our certainty of“ building excellent products for customers,”in are implemented by groups with select members, but the ongoing activities at the Instruction President Sanden's AP-STQM (Akagi Plant- Sanden Total Quality Management) program has led to the undertaking of ambitious reform activities aimed at dramatically plant's environmental impact and doubling customer value by 2011. Accounting Auditor ■ISO 9001 and TS 16949 Quality Management Systems ■Realizing Quality Based on SQC-Based Quality Assurance Systems with SQC Meisters and build strong relationships ■Technology exchange meeting in China founded on mutual trust. ■Activities to Further Raise Customer Satisfaction Levels To ensure that products are manufactured in line with feedback from customers who directly make use of those products, we have established a customer call center that handles product-related inquiries 365 days a year. This feedback information In all its product development and manufacturing processes, is communicated to QA units Sanden undertakes scientific data-based quality assurance activities at manufacturing plants, which and does its utmost to create appealing products that customers can analyze the information and utilize with satisfaction and confidence. Rather than limiting ourselves ensure that the next generation to statistical quality control methods alone, we address quality issues of products will reflect from scientific perspectives and undertake management quality customers' views. Corporate Governance/Compliance / Social Activities Relationship with Customers management efficiency by separating the roles of management decision 5 auditors, including four outside auditors Audit believe closely match our requirements. We have also adopted the executive officer system. This boosts Appointment/Removal ■Reforming the Akagi Plant's Manufacturing Operations Social Activities achieving additional increases in management efficiency and transparency. We will stand on the admired ability of engineering development and manufacturing, can offer product, system and services, based on the QUALIT FIRST ,that provide constant satisfaction to our customers around world. ■The customer call center improvement initiatives based on scientific quality control methods. SANDEN CSR REPORT 2009 19 Social Activities Relationship with Employees We will grow together with our employees by creating an organizational culture that encourages free and vigorous communication imbued with a spirit of respect for humanity in line with our corporate culture of challenge and innovation. We will enable our employees to achieve a healthy lifestyle by creating an environment that assures their health and safety. ■“A Company Is as Good as the People It Keeps” Concepts ■Putting Our Safety and Health Philosophy into Practice “ Teamwork among employees and within the organization is the basis of a company's prosperity.” 1. Based on communication between managers and subordinates,“ Challenge Sheets”are utilized to integrate the development of Company policies and division policies with the autonomous goal setting of individual employees. In accordance with our As a means of responding to obesity-related problems, we have implemented programs involving Corporate Philosophy, we convenient blood analyses, body composition measurement meetings, and health seminars. Many 2. While emphasizing individual employees' desires, measures are taken to offer established our“ Safety and employees have participated in these programs, and these activities have effectively provided employees spirit of the Company.“ In planning for one year, plant challenging new jobs and work themes through the“ FA System”as well as the“ open, Health Charter”in November with the motivation to take good care of their health. Aiming to create health-friendly environments at grain. In planning for 10 years, plant trees. In planning in-company recruitment system,”which offers employees additional career and 2000, and are taking active each manufacturing plant, we have taken such health-building-support measures as those to introduce for 100 years, nothing compares to nurturing people.” personal development opportunities in different Group units. steps to create a comfortable metabolic syndrome care offerings in cafeteria lunch menus and organize yoga and taijiquan (traditional 3. We have established a career consultation office to provide individual employees work environment that is Chinese shadow boxing) classes. In response to prime-of-life metabolic syndrome problems, Sanden has with career-related information and advice. The office is always available to healthy, safe, and secure for become a corporate participant in Gunma Prefecture's“ Genki Gunma 21 (Healthy Gunma 21)”program employees desiring career development support. all employees. and organized cooking training meetings designed to counter metabolic syndrome. ■Safety and Health Management System ■Job- Communting-Related Accident Results (Sanden Company) For a company to continue and develop for 50 or 100 years, people are important above all other considerations. Sanden understands the need to consistently develop superior human resources. Sanden's founders made these words their guiding management philosophy. ■ Creating“A Corporate Culture of Challenge and Innovation” ●Start of Sanden Management School a major turning point in career development, they are invited to attend a“ Life Plan Seminar.”These seminars encourage employees to review their work (skills, career) and private life to date and consciously lay life plans for their future personal progress, and the Company strives to give them opportunities in line with their plans. and leveraging of STQM along with the identification and development of Sanden's ●Brother/Sister (BS) Trainer System Having built a safety and health management system for the Sanden Group as In fiscal 2008, the number of job-related accidents increased from the level in the previous a whole, we have developed activities aimed at ensuring we will be the first class fiscal year. Considering this to be a serious problem, we have renewed our efforts to thoroughly among the leading companies with respect to safety and health. Specifically, we promote the consciousness of the need for“ maintain zero accident”among all employees, and hold a safety and health environment convention each June for Sanden Group we are intensifying our related activities focused primarily on preventative measures. companies as well as the Group's component suppliers, and, based on our (Fiscal Years) 2003 2004 2005 2006 2007 2008 next generation of top executives, we began Newly hired Sanden employees can participate in a mentoring system known Companywide safety and health policy, we are setting targets as well as drafting operating the Sanden Management School as the Brother/Sister (BS) Trainer System. After selecting a trainer, or mentor, annual action plans for each Group facility. By utilizing PDCA cycles in activities from February 2008. Currently, the number from among an assigned group of relatively senior technical and marketing based on annual action plans, we have clarified the roles and responsibilities of of graduates from the school has risen to 46. employees, participating employees are given training on how to deal with people each facility's safety and health officer and manager and other statutory managers and develop conversational power. Subsequently, they are given new employee and undertaken measures to upgrade the level of daily safety and health activities. TOPICS guidance for about a half year. These activities―including those related to safety and health committee meetings, ●Countermeasures to New Influenza Strains With Chairman Ushikubo himself serving as a teacher, the school helps students learn Sanden-style leadership. In addition to such themes as“ learning from the Cases without lost workdays 3 9 14 3 9 12 Cases with lost workdays 5 0 2 0 0 2 By helping guide new employees, the relatively senior employees participating safety and health patrols, and emergency response drills ― have demonstrated Sanden has adopted the fundamental policy of giving top priority to (1) protecting students are encouraged to consider the chairman's experience, actions, beliefs, in the system are able to gain a better understanding of the importance of human excellent performance and firmly established good practices. We have also human lives and (2) living up to its social responsibilities (in preventing infections and aspirations, dreams, and vision as a way of helping perpetuate Sanden's corporate DNA. resource development while also improving their own capabilities for providing implemented regularly scheduled safety and health education programs with the spread of infections) while also (3) maintain business operations. The Company guidance. In addition, the system helps ensure that new employees are smoothly outside instructors, and our overseas facilities are developing safety and health has proactively implemented new influenza strain countermeasures since 2005, accepted at their work sites and provides powerful support for new employees' activities that utilize PDCA cycles as a means of realizing a“ spiraling up”of safety when concerns emerged regarding the potential for a full-scale epidemic. With the efforts to realize their full potential as adult members of society. and health performance. goal of enabling a rapid response in the case of infections, we have made revisions Company's history”and the“ a company is as good as the people it keeps”concepts, ●Education by Job Classification All Sanden Group employees ― from new hires through managers ― participate in training by job classification programs that promote greater awareness of the Company's Corporate Philosophy and help employees acquire knowledge and skills in to our action plan when necessary. In April 2009, when the H1N1 virus emerged, we & Safety Advisory Services (OHSAS) standards were obtained by Sanden established an action plan that provides for different responses depending on the level ●In line with its responsibilities as an employer based on the International (Singapore) Pte. Ltd. (SIS) in July 2007, and by Sanden Manufacturing of viral pathogenicity (virulence). Currently, we are implementing countermeasures “ Law to promote measures to support the development of Poland Sp.z.o.o. (SMP) in December 2008. The receipt of these certificates has based on that plan in a global, Companywide manner. Going forward, we will continue the next generation,”which took effect in April 2005, Sanden caused each employee to become strongly conscious of safety and health issues gathering information on global trends regarding new influenza strain infections so that has drafted and implemented an employment environment as well as helped upgrade the level of safety and health activities. we can take the optimal measures required to protect employee safety. TOPICS line with the actions required from people in their respective job classification. In fiscal 2008, we augmented and strengthened programs for middle-level managers. To foster the development of leaders at an early stage, classes were organized for relatively young employees (youth circle leaders within small group activity programs), creation action plan. We previously took such employment who learned the mental and technical aspects of problem solving and were encouraged to exhibit leadership in reform activities at their workplaces as a means of accelerating In addition, certificates of compliance with international Occupational Health ■Kurumin Mark environment creation measures as those to introduce systems for leaves of absence and modified working hours in their personal growth. connection with childbirth and the nursing of relatives. In June 2009, we introduced additional ●Support for Employees' Career Development systems including (1) a system providing for the rehiring of employees who retired due to such Based on the concept that“ productivity is maximized when the values of reasons as pregnancy, childbirth, child raising, the nursing of family members, the overseas work individuals and the Company coincide,”each Sanden employee sets personal assignment of one's spouse, or a move to a new location due to marriage and (2) a system to challenge goals, and the Company works to provide the employee with support the employment of employees using the child-raising modified work schedule system opportunities and positioning that help the employee enjoy the pleasure of based on a contract with a baby-sitting company. As a result, the government has granted us a surmounting challenges, attaining objectives, and realizing personal growth. certificate attesting to our compliance with current standards for ordinary employers. ■Convenient blood analyses SANDEN CSR REPORT 2009 Relationship with Employees A i m i n g to e n s u r e t h e s u s te n a n c e 4. When employees are approaching the age of 40, which is commonly considered Social Activities This is the basic concept that lives on in the founding (Chinese philosopher Guanzi) 20 ■Sanden Group Health Promotion Activities ■Cooking training to counter metabolic syndrome ■Metabolic syndrome care menu item SANDEN CSR REPORT 2009 21 Social Activities Relationship with Society Relationship with Shareholders and Investors/Relationship with Suppliers We will respect regional customs and cultures around the world and contribute to the social and cultural development of the communities, which we are related with. ■Fundamental Policies ■Cooperation with Universities We will respond to the trust and expectations of our shareholders and investors by expanding the Sanden Group, enhancing our corporate value and making our management more transparent. Relationship with Shareholders and Investors Sanden has entered into comprehensive cooperation agreements ■Outstanding Shares and Shareholder Structure Citizenship and Harmony with Society.”This reflects our awareness of our important with Waseda University and Gunma University. At Waseda University, As of March 31, 2009, Sanden had 140,331,565 outstanding shares For Sanden, providing shareholder returns is positioned as one of the top roles in society ―through the activities of each Sanden employee and the corporate we provide guest instructors who present lectures on such topics as and 10,148 registered shareholders. The number of shareholders by type management priorities. The Company's fundamental objective is to maintain stable activities of Sanden, we are maintaining strong ties with local communities; providing international environmental business theories, and we also are engaged of shareholder are shown in the exhibits below. dividends while determining dividend levels based on a comprehensive assessment products, systems, and services; paying taxes; creating jobs; and otherwise contributing in cooperative research related to leading-edge technologies. At Gunma to society. Based on our fundamental concept of emphasizing harmony between University, we present lectures on the topic of technological specialists Sanden and society, we are moving forward with efforts to build strong ties with society. that feature real case studies gleaned from corporate operations, thereby The first item in Sanden's Corporate Philosophy is entitled“ Good Corporate ■Environmental Education (Forest Kids Nature Experience Study and Akagi Club Nature School) Since creating the Sanden Forest, we have organized“Forest Kids”activities designed to make good use of the abundant natural environment of the forest for the benefit of ■Number of Shareholders by Type of Shareholder (From p. 22: change figures) Financial institutions Securities companies 32 Foreign individuals 45 ■ Activities of Overseas Group Companies Foreign, etc. (excluding individuals) addition, we established the Akagi Club to undertake environmental education programs cystic fibrosis for more than a decade. In the year under review, it through broad-based collaboration, and this organization has received funding from the gathered approximately€1,300. 9,733 Other corporate 226 3 Government and regional public entities 2 Total ■IR Information Disclosure To promote fairness, transparency, and expeditiousness in IR information disclosure, Sanden has established a specialized IR website. Financial information is disclosed through this website after each quarterly fiscal period, and we also organize performance explanation meetings after the end of interim fiscal periods and fiscal year-ends. Videos of the meetings and materials distributed at the meetings are also made available through the IR website. 10,148 ■Visits to Overseas Institutional Investors Sanden has its top executives travel once each year to principal overseas ●SPK (Sanpak Engineering Industries Pvt. Ltd.) Club is engaged in such programs as environmental research and studies related to the In Pakistan, SPK arranges for farmers to grow wheat on idle land, and then business regions--Europe and Asia--to directly visit institutional investors based Akagi Mountain area as well as the resolution of environmental problems. distributes the harvested wheat to the farmers and their employees. In the on those regions and carry out overseas IR tasks. ■Sanden Cultural Lectures Each autumn, Sanden seeks to promote social progress through highquality culture by inviting intellectuals to participate in the Sanden Cultural Lectures program in Isesaki, Gunma Prefecture. In fiscal 2008, the 25th session of this program featured a well-known actress, Kazuyo Matsui, who presented a lecture entitled “Happiness Starts with Cleaning Up the House.” ■Third Gunma Clockwork Mechanism Exhibition An earth-friendly, energy-conserving technology for moving machines without electric power or motors, clockwork mechanisms are used in manufacturing facilities and various other locations. In fiscal 2008, Sanden enlisted the cooperation of eight companies with summer of 2009, several dozens of kilograms were produced by this program. ●SVL (Sanden Vikas (India) Ltd.) In India, SVL participates in and supports the activities of an organization (Nanhi Kali) that provides education to girls from poor families who would otherwise not be able to obtain an education. ●ATP(Automotive Air-conditioning Technology Philippines, Inc) In the Philippines, ATP supports the activities of an organization We will grow together with our suppliers as business partners who provide our customers with the best possible products, systems, and services on the basis of fair and transparent relationships. (Gawad Kalinga) that works to eliminate the hunger and poverty of homeless and poor families. ATP made a financial contribution in Relationship with Suppliers June 2009 and received a letter of thanks from Gawad Kalinga. ■Research with Suppliers via MPS Meetings ●SIE(Sanden International Europe Ltd.) Sanden has given its procurement sections the name MPS (Materials & Part and cooperation. At the 2008 CF Conference, we explained our business environment and policies, requested measures to strengthen our partnerships with suppliers, and also presented such new initiatives as those involving our provision of support for suppliers. presences in Gunma Prefecture and local schools in organizing an exhibition to help In England, SIE makes contributions to support air ambulance Supply). Rather than considering procurement to be equivalent to purchasing, explain the joys of manufacturing craftspersonship to many people in the region. services for treating people with leukemia. we view MPS as a broad field encompassing the reliable and efficient supply of In addition, each Sanden business facility organizes two Business Facility CF competitive materials as well as parts from suppliers to Sanden factories as well as Conferences each year, at which the facilities explain their business development plans in the supply of products to leading companies that are Sanden customers around the detail and work to build even stronger relationships with suppliers based on mutual trust. ●SOE(Sanden of Europe GmbH) TCE (Sanden Technical Centre (Europe) GmbH) In Germany, SOE and TCE gathered approximately€ 1, 000 from its employees and contributed those funds to a primary school that is actively organizing environmental programs. In addition, SOE is engaged in a program to clean up the nesting boxes of birds in a forest near the SOE facility. ■Sanden Cultural Lecture Series ■SME presents funds for cystic fibrosis research. world. In February 2008, we cooperated with our suppliers to organize a MPS Meeting to ■Σ127 Campaigns with Suppliers promote the research and resolution of diverse problems. At the meeting, suppliers To promote improvements such as those regarding productivity, quality, value formed separate groups for various themes, including“ environment & health and analysis, and value engineering, Sanden's suppliers engage in Σ 127 (Sigma 127 ) safety,”“ increasing productivity,”and“ strengthening management bases.”As they small-group activities. Since 1993, when Σ 127 programs were initiated with the engage in research programs involving mutual efforts by the participating companies participation of 127 suppliers, 33 sessions of Σ 127 activities have been organized, to promote innovation, these groups are submitting various suggestions to Sanden. with the objective of concertedly focusing suppliers' capabilities on the promotion of reforms. The scope of Σ 127 programs is not restricted to suppliers; outstanding ■Direct Communication via CF Conferences Each year, Sanden holds a CF Conference (“ Create Future”Conference) to explain its ■Gunma Clockwork Mechanism Exhibition 22 SANDEN CSR REPORT 2009 ■SOE/TCE presents funds to a primary school with abundant environmental programs. ■Letter of appreciation for ATP's antipoverty contribution ■SOE employees cleaning up nesting boxes groups from the programs participate in Sanden Group small-group activities, enabling them to promote reform measures in close cooperation with Sanden. Relationship with Society / Relationship with Shareholders and Investors / Relationship with Suppliers In France, SME has raised funds to support research related to Individuals, etc. 107 ●SME (Sanden Manufacturing Europe S.A.S.) participants, including Sanden employees along with local children and their parents. In Japan Fund for Global Environment. Working together with local communities, the Akagi of its situation and due consideration of the consolidated performance situation. Social Activities helping foster the development of the next generation of engineers. ■Dividend Policy management policies and tasks to our suppliers and promote suppliers' understanding SANDEN CSR REPORT 2009 23 Social Activities How Stakeholders Evaluate Sanden We attach great importance to stakeholders' evaluations and recognize that we must create additional corporate value to meet stakeholders' expectations. We are continuously striving to build excellent relationships with all our diverse stakeholders. 〈Evaluations from Customers〉 ■SIA (Sanden International (U.S.A.) Inc.) receives The Volkswagen Group Award from Volkswagen México (April 2008). ■SIA (Sanden International (U.S.A.) Inc.) receives Supplier Quality Excellence Process Certification from ■Receipt of Volkswagen Group Award Caterpillar (United States) (June 2008). ■SIA (Sanden International (U.S.A.) Inc.) receives the HONDA Supplier Productivity Award from Honda of America (July 2008). ■SIT (Sanden International Taiwan Corporation) receives the Silver Award of the Supplier Convention of ■SIE (Sanden International (Europe) Ltd.) receives Tracknology Supplier 2008 Award from MAN (Germany) (May 2009). ■Receipt of Tracknology Supplier 2008 Award President Suzuki (left) receives Asahi Corporate Citizen Award. 〈Evaluations from Society〉 Environmental Green Evaluation System) evaluations presided over by the Ministry of Land, Infrastructure, ■Receipt of Asahi Corporate Citizen Award Transport and Tourism and run by the Urban Greenery Foundation (April 2008 ). Excellent Stage 3 On September 30, 2008, Sanden was selected to receive one of the Fifth In fiscal 2008, Sanden was selected from among 175 companies based Asahi Corporate Citizen Awards, which are presented to companies that throughout Japan that leveraged the special characteristics of their business make outstanding contributions to society. This award program― established operations while making conspicuous contributions to local societies and in 2004 to commemorate the 125th anniversary of the founding of the Asahi international society. Shimbun newspaper ― is designed to reward companies that make CSR The reason cited for the selection was that Sanden created a rich natural programs an integral part of their management base, strive to contribute environment on the grounds of its Sanden Forest/Akagi Plant complex and proactively to society through autonomous CSR activities, and succeed in thereby worked in close cooperation with citizens' groups to promote environmental generating considerable benefits. education. The Company's performance in these regards was highly evaluated. recognizes an extremely high level of contributions to society and the environment through the creation and maintenance of green and forested areas, and Sanden attained the stage based on a perfect (30 of 30 evaluation points) achievement of the criteria for that stage. ■Sanden Forest/Akagi Plant receives the METI Minister's Award in Excellent Greenification Plant Award ■Receipt of METI Minister's Award program (October 2008). ■ SMP (Sanden Manufacturing Poland Sp.z.o.o.) receives Company of the Year in Poland Award, automotive industry- related company section (November 2008). ■ SMP (Sanden Manufacturing Poland Sp.z.o.o.) wins second place in the Silesia regional health and safety competition (November 2008). How Stakeholders Evaluate Sanden ■Sanden Corporation certified to have attained Excellent Stage 3 of the 2008 SEGES (Social and Social Activities Ford (Taiwan) (April 2009). ■ SMP (Sanden Manufacturing Poland Sp.z.o.o.) obtains the certificate of compliance with international Occupational Health & Safety Advisory Services (OHSAS) standards (December 2008). ■Sanwa Precision receives Fiscal 2008 TPM Sustained Excellence Award for programs sustained over six ■Receipt of Company of the Year in Poland Award years since first receiving the TPM Excellence Award (December 2008). ■SME (Sanden Manufacturing Europe S.A.S.) receives the TPM Excellence Award (January 2009). ■Sanden Logistics receives the gold award at the QC Circle Kanto Region Improvement Examples Champion Convention (February 2009). ■Received the Young Scientists' Prize of the Commendation for Science and Technology by the Minister of Education, Culture, Sports, Science and Technology (April 2009) . Twenty-one employees received this national award for individuals who contribute to the basis for promoting science and technology through outstanding work at factories and other manufacturing facilities. ■Receipt of METI Minister's Award in 12th Ozone Layer Protection and Global Warming Prevention Award Program development of the next generation”(July 2009). The Non-fluoron, Energy-Saving Freezing/Air-Conditioning System for Small-Scale Stores Industry (METI) Minister's Award, which is the highest honor in the 12th Ozone Layer Protection and employs ammonia (NH 3) as a non-fluoron refrigerant and uses NH 3 circuits to create a system ■ATP (Automotive Air-conditioning Technology Philippines Inc.) received an award from USAID Philippines Global Warming Prevention Award Program organized by the Nikkan Kogyo Shimbun newspaper. The including outside air-conditioning units and freezing units of freezing/refrigerating units together and the Human Resources Management Association of Canlubang (HRMAC) for its promotion of the reason cited for the selection was Sanden's participation for three years in the program supported with in-store freezer/refrigerated showcases and air-conditioning units. Family Health Program as part of its CSR activities (July 2009). development and commercialization of the Non-fluoron, Energy-Saving Freezing/Air-Conditioning System for Small-Scale Stores for use by convenience stores, drugstores, and similar facilities. 24 ■ Received the certificate of compliance with Japan's“ Law to promote measures to support the On September 9, 2009, Sanden was selected to receive the Ministry of Economy, Trade and by Japan's New Energy and Industrial Technology Development Organization (NEDO), resulting in the SANDEN CSR REPORT 2009 ■Receipt of TPM Sustained Excellence Award The system is the first system for small stores that uses non-fluoron refrigerant and conserves energy while concurrently performing refrigeration, freezing, and air-conditioning functions. 〈Evaluations from Shareholders/Investors〉 ■Selected in the Morningstar Social Responsibility Investment Index 150 (MS-SRI 150) (from June 2003.6) ■Receipt of certificate of compliance with Japan's“Law to promote measures to support the development of the next generation” SANDEN CSR REPORT 2009 25 Environmental Activities Environmental Management We will endeavor to preserve the environment in every aspect of corporate activities to ensure that future generations will inherit our beautiful ,irreplaceable earth. ■Fundamental Policies Environmental Chapter A s a manufac ture r of such automotive ■Progress in Environmental Environment Committee, which is chaired by the Company's is crucial to increase the environment consciousness of all Management Systems director in charge of environmental affairs and meets four times employees and enable them to obtain requisite environmental each year to draft Companywide policies and confirm that such knowledge. equipment products as car air-conditionings Environmental Doctrine Based on its Environmental Charter and Environmental and car air- conditioning compressor s as Sanden, as a worldwide corporate citizen, recognizes that preserving the earth's environment is the most Vision, Sanden has drafted Environmental Action Guidelines. policies are being thoroughly implemented. T h e S a n d e n G r o u p imp l e m e n t s t wo c a te g o r i e s of we ll a s s u c h fo o d di s tr ib u ti o n p r o d u c t s important shared responsibility of mankind. In order to pass on a safe and clean earth to the next generation, Based on these guidelines, all Sanden Group companies in In addition, to promote environmental management at each environmental education programs ― general education and Japan and overseas set themselves targets for each fiscal year Sanden Group company in Japan, a conference of domestic special education programs. and implement diverse environmental programs at each of their Group companies' environmental activity promotion managers is In fiscal 2008, we implemented an environmental education facilities. held each month. These conferences work to ensure the sharing program for all technical staff while also giving emphasis to as commercial freezing and refrigerating Sanden will take appropriate steps in all areas of business activities to preserve the environment. showcases and vending machines, the Sanden Group recognizes that it bears a social Environmental Principles of Action 1. Sanden will establish a specific organization to promote activities to preserve the earth's environment, and, in order responsibility with regard to reducing the to ensure these activities, will execute environmental audits and endeavor to maintain and improve the activities. Our environmental management systems are operated of information related to environmental policies and issues. education and development related to life-cycle assessment environmental impact of its products over their 2. Sanden will collect precise information regarding the environmental burden arising out of its activities, set an in accordance with ISO 14001 international standards To promote sharing among the environmental activities of (LCA), environmental efficiency indicators, material flow for environmental management systems, and we employ overseas Sanden Group companies, we organize a Global cost accounting (MFCA), and responses to harmful chemical PDCA cycles as we undertake the sustained implementation Environmental Management Promotion Conference once every substance regulations. of environmental activities. The scope of our environmental two years. In fiscal 2009, we have begun implementing an environmental entire life cycles and with regard to helping solve global environmental problems. Sanden's Corporate Philosophy positions the environment as a universal value. Based on the Corporate Philosophy, all the Company's employees are proactively striving to execute their work while giving due consideration to the need to preserve the natural environment. We have also adopted the Sanden Environmental Charter, which is being applied to all Sanden economically possible. 3. Sanden will, in addition to complying with all environmental regulations, set up voluntary environmental standards, and engage in prevention of pollution in order to ensure further preservation of the earth's environment. 4. Sanden will eliminate, as far as possible, any toxic substance which causes a burden to the earth's environment through the adoption of alternative technologies, conversion into alternative materials, collection, and recycling. 5. Sanden will engage in saving resources and energy, recycling, and minimizing industrial waste in all areas of business activities. 6. Sanden will undertake environmental educational in-house activities for all its employees at all levels, in order to enhance consciousness of preserving the earth's environment. 7. Sanden will contribute to society as a community member by voluntary participation in the environmental preservation activities of the local communities. 8. Sanden will, in order to obtain better understanding and cooperation with regard to the preservation of the earth's well as principal nonmanufacturing facilities (the head office, ■Implementation of Environmental ensure that our marketing staff have strong capabilities for marketing offices, and the Technical Center), and we have Education Programs describing and discussing important environmental issues. progressively obtained ISO 14001 certification for those facilities To ensure the realization of the Management Policies, it since 1997. As a result, at the end of fiscal 2008, we had obtained ■ Group Environmental Activity Promotion System ISO 14001 certification for 35 facilities-15 in Japan and 20 overseas. Thus, 94% of Sanden Group employees are engaged ■Env ironment al Policy and Eco- Factories based on due consideration of the need to preserve the environment. To provide common Eco- Management Eliminating“all forms of waste”from our offices and other business locations Aiming to Reduce Energy Use 10% (from 1990 levels) by 2010 Improving environmental management and integrating systems Integrating the EMS of Our Business Locations in Japan by 2007 managers and representatives of each site, with the goals of ensuring compliance with Environmental Action Guidelines as well as sustained improvement efforts. Having positioned environmental activities as a top priority management task, Sanden has established its Central Committees and Working Groups Responsible for Specific Themes all of its corporate operations are executed Aiming for an Eco-Product Ratio of 100% by 2010 Environmental Promotion Headquarters (Secretariat) Conference of Officers Responsible for Environmental Promotion at Domestic Subsidiaries Sanden has taken measures to ensures that Enhancing environmental functions of products and promoting the development of environmental technologies Global Environmental Management Promotion Conference Eco- Products also calls for management reviews of the activities of environment Tokyo Headquarters/Front Office Safety, Health, and Environmental Committee Providing our leading customers around the world with products, systems, and services that feature“equal environmental quality” Kotobuki Area Safety, Health, and Environmental Committee development of global business operations, conformance with the Companywide policies and plans. The audit Akagi Plant Safety, Health, and Environmental Committee A s a corporate citizen engage d in the several times each year to confirm that operations are in Environmental Vision: Eco-Excellent 2010 Nonmanufacturing facilities Central Environmental Committee Yattajima Plant Safety, Health, and Environmental Committee Environmental Vision ■Sanden ECO Vision 2010 Overseas Group companies Management Committee Companywide environmental audit (internal audit) conducted Domestic manufacturing facilities Domestic Group companies President in environmental activities based on the ISO 14001 standard. Environmental activities at each site are subjected to a Group companies in Japan and overseas. education program for all marketing staff that is designed to Environmental Management environment, offer PR activities on a broad base to the community, and provide information as required. management system encompasses manufacturing facilities as Environmental Activities the ideas and action guidelines described by environmental objective/target, and continuously reduce the environmental burden as much as technologically and goals for all employees in this regard, we have established the“ Environmental Vision: EcoExcellent 2010 ”and“ Environmental Action ■The Five Environmental Action Guidelines 1. Develop environmentally responsible products and environmental technologies ■A general environmental education program (part of education for newly hired employees) ■A special environmental education program (LCA education) Guidelines,” and our environmental action plans reflect the content of that vision and those guidelines. Currently, we have adopted the Management Policy of striving to create corporate value with 2. Conduct green procurement, sales, and service activities 3. Conduct environmental protection activities that promote cost effects and environmental improvements 4. Upgrade the environmental management system environment. Based on our original strengths of Quality and Global, we will achieve further 5. Increase community activities involving the environment growth with“Environment”. Going forward, we will operate in accordance 26 with this management policy by powerfully time, we will be closely watching developments to draft the next version of our Environmental promoting progress in the implementation of in the international debate regarding Vision along with our medium-term goals. our environmental action plans. At the same greenhouse gas reduction targets as we work SANDEN CSR REPORT 2009 SANDEN CSR REPORT 2009 27 Environmental Activities Results of Environmental Preservation Activities Product Development Efforts (Eco Products) ■Major Accomplishments of Environmental Programs in Fiscal 2008 We divide the environmental activities we carry out into four broad categories: eco-products, eco-factories, eco-management, and social contribution. The principal results of these environmental activities during fiscal 2008 are summarized below. Category Environmental Target Results of Activities Evaluation Increase the share of products that are eco-products to 95% (Retail Systems Business) ・Increased the eco-product share to 88% △ Attain vending machine top-runner standards in advance for 80% of products (2012: top-runner standard compliance for 100% of products) ・Attained vending machine top-runner standards in advance for 60% of products △ Obtain EcoLeaf certification for vending machines (heat pump products) ・Obtained certification for 19 product models ○ ・Attained targets for vending machines, store products, and store master ○ × Eco-Product Expand sales of eco-products (Product Development) Did not attain target for Eco Cute* products Create innovative technologies and reduce environmental impact associated with product use. Create environmental businesses appropriate for a recycling-oriented society 〈Japan〉 Reduce volume of energy used per cost-of-sales unit by 10% (from level in previous year) 〈Overseas〉 Reduce volume of energy used per cost-of-sales unit by 5% (from level in base year) 〈Japan〉 Reduce volume of waste generated per cost-of-sales unit by 5% (from level in previous year) 〈Overseas〉 Reduce volume of waste generated by 5% (from level in base year) 〈Japan〉 Reduce water use volume (compared to reference year (2005)) 〈Overseas〉 Reduce water use volume (compared to reference year) Reduce harmful chemical material emission volume (automotive business) ■Using Life-Cycle Assessment (LCA) to other aspects of the value-added of automotive parts the development of eco- Analyze Products' Environmental Impact and components, this working group introduced product products and actively Sanden uses LCA analysis to measure the environmental environmental impact indicators that take account of provide customers with impact of each of its principal products at each life- environment friendliness as well as value-added regarding cycle stage, from raw material procurement through convenience and other characteristics. that demonstrate an outstanding level of environment manufacturing, transportation, use, recycling, and disposal. The Product Environmental Guidelines of the Japan × friendliness in their respective product life cycles and thus Having found that the main impact of our principal products Auto Parts Industries Association may be accessed × help reduce the burden on the global environment are is during the use stage, we have concluded that we can at http://www.japia.or.jp. In line with the association's designated“ environmentally advanced products”and may make the greatest contribution to reducing environmental guidelines, Sanden has worked to attain and confirm these bear the Sanden Eco-Label. impact by improving technologies for conserving energy environmental efficiency indicators in each category of In fiscal 2008, we increased the share of our products during product use. Accordingly, we are analyzing and its car air-conditioning compressor business. The results that bear Eco-Labels to 88% through measures to boost quantifying data on energy consumption in the product- of these efforts―announced at the Japan Refrigeration (total energy consumption associated with manufacturing operations -6%) ・Volume of energy used compared to base year -3% ・Volume of waste generated per cost-of-sales unit +10% (total waste generated during manufacturing operations -5%) ・Volume of waste generated compared to base year -3% × ・Maintained recycling rate of 99% or higher (zero emission) performance ○ ・Reduced water use volume 5% ○ ・Reduced water use volume 15% ・Thorough fluoron recovery for experimental trials (average of 52%) ・Full phaseout of dichloromethane ○ the Eco- Label ratio among Retail Systems Business use stage and utilizing this feedback to develop “ advanced and Air Conditioning Industry Association's International ○ products and the rising share of systems products in that environmental products.” Symposium on New Refrigerants and Environmental field. vehicles, shift to appropriately sized vehicles in line with load volumes, and increase vehicle loading ratios ○ ・Continued conducting supplier surveys, implementing study meetings, and using replacement materials ・Completed preliminary registration for REACH ○ ・Held the Sanden Eco Festival ・Undertook Ashiodozan region tree-planting activities (organized by Ashio Green Growing Association) ・Participated in the Gunma Prefecture unified beautification campaign ・Participated in the Isesaki Environment Festival ・Non-fluoron freezing/air conditioning system eco-product exhibition ・Participated in the Akagi Nature Schoo ・Participated in the global warming countermeasures regional conference ○ ○ adopted in-house regulations that are stricter that related accidents or complaints involving the To prevent environmental accidents related to national or regional regulations, and we are striving Parent Company or other domestic Sanden Group such substances as oil and chemicals, the Sanden to maintain rigorous compliance with our extra- companies. Group is implementing thorough environmental strict regulations. In the United States, Group company risk reduction measures. To prepare for the possibility of an accident, SandenVendo, America Inc. continued to implement In particular, we have identified materials, we have prepared emergency response manuals remediation measures regarding ground and facilities, and equipment with the potential for and such provisions as sandbags and oil mats. groundwater pollution at the site of a former plant. causing such environmental accidents as spills We also regularly conduct emergency response In Thailand, STC (Sanden (Thailand) Co., Ltd.) or leakage during transportation, storage, or drills. In these and other ways, we are doing our discovered based on an analysis of its effluent water usage processes. Having done that, we are utmost to ensure the prevention of accidents with handled by Rojana Industrial Park that certain water undertaking such initiatives as those to plan environmental impact. quality standards were being exceeded. Having and introduce daily management processes for already implemented corrective measures and those potential risk sources as well as install ■Environment-Related confirmed the effectiveness of those measures, we monitoring equipment. Regarding diverse kinds Accidents/Complaints are continuing to conduct water quality analysis of environmental impact, we have autonomously In fiscal 2008 , there were no environment- measures on a sustained basis. Technology 2008 (November 20-21, 2008)―are being used We intend to make all our products, systems, and ■Introduction of Product in the development of environmental efficiency indicators services qualify for the Sanden Eco-Label by fiscal 2010. Environmental Impact Indicators for products in other Sanden business fields. Accordingly, we are from fiscal 2009 augmenting our efforts Since fiscal 2005 , Sanden has participated in the ■ Percentage of Products That Are Eco-Products ■ Analysis of the Impact of Car Air-conditioning Compressors on Global Warming (%) 100 80 (%) エコ製品比率実績 85 テキストなし 85 88 40 40 26 20 0 Total impact 2,920kg-CO2 02 03 04 05 06 07 08 (Fiscal year) ■ Sanden Eco-Label Criteria 0 0.5 0.0 0.3 Materials Product Distribution Product use manufacturing manufacturing ■製品環境指標 31.1 Total impact 2,800kg-CO2 ( ) Total impact includes the effects of recycling. 4.8 0 10.2 0.6 Materials Product Distribution Product use Disposal manufacturing manufacturing For details, refer to the EcoLeaf section of the Website: http://www.jemai.or.jp/ecoleaf/index.cfm −18.8 Types of Compressors Sanden Eco-Label Criteria Products must meet the following three requirements to carry the Sanden Eco-Label. 1. Products that meet assessment standards 40 20 20 2 72.1 60 60 49 (%) 100 80 80 68 60 99.2 100 ■ Analysis of the Impact of Vending Machines on Global Warming Product Fixed volume compressor Variable volume compressor External variable volume compressor 2. Products that are particularly environment friendly 3. Products that are manufactured at an ISO 14001 certified plant Warming Environmental Resource use impact Environmental impact substances Warming Environmental Resource use efficiency Environmental impact substances Product environmental impact indicator 3234 513 41 0.050 0.316 3.951 Warming Resource use Environmental impact substances 2311 446 37 0.076 0.395 4.757 1.52 1.25 1.20 2232 382 32 0.081 0.471 5.625 1.62 1.49 1.42 SANDEN CSR REPORT 2009 Results of Environmental Preservation Activities / Product Development Efforts (Eco Products) Group company) (visualization of supply chain losses) ・ Expanded use of LCA method (development departments) (visualization of environmental impact of principal products) ※”Eco Cute”is the nickname given to CO2 natural refrigerant heat pump hot water supply systems that have been promoted by electric power companies and by companies manufacturing and marketing these units. SANDEN CSR REPORT 2009 the environment friendliness and convenience as well as Label program to promote environmental information. Under this program, products ・Expanded use of MFCA method (at one division and one domestic 28 introduced the Sanden Eco- × ○ ■Environmental Risk Management of the Japan Auto Parts Industries Association. To increase ・Volume of energy used per cost-of-sales unit +12% ・Held morning environmental meetings and safely health and environment conferences ・Implemented environmental patrols Proactively contribute to local communities by participating in social contribution activitiesl of environment- friendly technologies and products. ○ Promote“eliminating every possible loss” Act as an excellent corporate citizen by proactively undertaking working group for product environmental impact indicators ・Commercialized environmental businesses appropriate for a recycling-oriented society × Social Contribution environmental preservation activities in local communities Activities to launch new projects and advance with the development ○ ・Energy use per distribution unit +2.0% (total energy use at the transportation stage -15%) ・Implemented measures to use cooperative transportation systems rather than exclusively chartered Expand green procurement activities and reduce use of harmful chemicals in line with EU and other regulations In fiscal 2001, we ・Commercialized non-fluoron freezing/refrigerating system ・Developed heat exchanger for use with replacement refrigerant (CO2) systems ・Developed diverse Eco Cute products ・Developed electric-powered compressor for use with CO2 and new refrigerants Promote green distribution methods that reduce environmental impact at the transportation stage Eco-Management Expand application of environmental appraisals (visualization) ■Sanden Eco-Label System Environmental Activities Eco-Factories Maintain recycling rate of 99% or higher (zero emission) performance (Manufacturing Activities) Sanden is striving to develop“environmentally advanced products”designed to create additional value while reducing environmental impact. While constantly considering what kinds of products will be considered better from the perspectives of customers, we are moving ahead with the development of products that can promote the realization of a sustainable society by helping lower energy consumption, preserve resources, and reduce the use of hazardous materials. Going forward, we are anticipating great changes in society and are doing our best to respond to those changes ahead of time by advancing with the development of environment-friendly technologies. Because doing this effectively requires appropriate product and technology evaluation measures, we are employing the various product development processes described below. 29 Environmental Activities Environmental Accounting ■Environmental Accounting for Global Center of Technology (SGCT) in September understanding of actual situations regarding ■Volume of Resources Used at and thereby concurrently realizing corporate processes of Group company Sanwa Precision the Parent Company 2008 (+ ¥ 1 . 7 billion) and the addition of R&D environmental impact and environmental activities, Plants and Emissions from Plants management and environmental management Co., Ltd., with the goal of promoting“visualization we are consistently using a method based on that of Sanden has compiled data on the volume of objectives. of losses. ” Resulting improvements are the Environmental Activities Evaluation Program of main resources used at plants and the volume MFCA is a cost-of-sales calculation and scheduled to be implemented during fiscal 2009. analysis method that identifies resource To promote efficient and effective progress in investments related to environmental technologies. environmental protection activities, it is important to measure environmental protection costs and ■Sanden Group Environmental Japan's Ministry of the Environment. of emissions from plants into the air and water benefits in quantitative terms to clarify environmental Performance Data The Group's emissions of CO 2 in fiscal 2008 (collectively referred to as “ material flows ” ) losses during manufacturing processes and ■Results of MFCA Analysis of Processing Processes at Sanwa Precision Co., Ltd. protection tasks and facilitate rational decision- The Sanden Group employs environmental declined to 7% below the fiscal 2007 level, reflecting in fiscal 2008, and used this data to plan and calculates the“ negative product cost”--as a 100 making processes. accounting to obtain important physical volume data temporary suspensions of manufacturing operations implement activities for efficiently reducing total of materials expenses, energy expenses, Since 2000, Sanden has calculated environmental regarding the amounts of energy used, the amount in response to sharp changes in the economic environmental impact. processing expenses, facilities depreciation protection costs (in financial terms) and environmental of CO2 emitted, and the amount of waste generated. environment as well as the thorough development protection benefits (in physical units) based on its This data is used to evaluate the environmental and management of energy-conservation measures. ■Material Flow Cost Accounting (MFCA) costs--based on the same value basis as that own environmental accounting system, which was protection activities of the parent company and of Based on consideration of this result, all Group In fiscal 2005 , Sanden began using MFCA for the product (positive product) sent on to the developed with reference to the Environmental other Group companies in Japan and overseas. companies are moving forward with measures to as a means of supporting its environmental next manufacturing process. Accounting Guidelines of Japan's Ministry of the While different countries use different methods achieve additional decreases in CO2 emission volume management. MFCA was developed in Germany In fiscal 2008, we applied MFCA to the supply Environment. We are currently moving ahead with of measuring CO2 equivalents, to promote a good and hydrofluorocarbon (HFC) usage volume. as an environmental management accounting chain linking the compressor piston casting method for increasing resource productivity processes of the Akagi Plant with the processing companies in Japan and overseas, and we plan to ■Sanden Corporation Non-Consolidated Environmental Accounting for Fiscal 2008 Environmental Costs(100 Millions of yen) Classification progressively develop these activities going forward. In fiscal 2008, our environmental accounting scope the parent company's facilities and Sanden Forest. are reporting on increases and decreases in“ the environmental impact of resources used in business activities and emissions associated with business 757 898 ①Pollution Prevention Costs Cost of preventing water pollution (including soil contamination) Cost of preventing air pollution ― 108 ②Global Environmental Preservation Costs Expense of energy conservation improvement promotion projects 757 Maintaining and administering pollution prevention facilities ③Resource-Related Costs 4)R&D Costs Expense of monitoring and measuring environmental impact Health, Safety, and Environment Committee at each site Development of energy-saving vending machines Development of energy-saving refrigerator/freezer showcases increased ¥6.9 billion from the level in fiscal 2007. Besides growth in such items as environmental Expense of treating and recycling recovered R141b Development of alternative refrigerants and environment-friendly compressors Development environment-friendly car air-conditioning technologies activities.” In fiscal 2008 , environmental protection costs Resource recycling related costs 2)Upstream/Downstream Costs Costs for the disposal of products and components 3)Administration Costs 5)Social Activity Costs protection-related capital investments at facilities Sanden Forest environmental monitoring surveys and maintenance and tree-planting administration Akagi Clean/Green Eco Network (including Akagi Nature School) operation Operation of Akagi Club and Forest Kids NPOs 35 ― 755 ― 19 ― 326 1701 4280 210 35 2668 Subtotal and R&D investments related to environment-friendly expenses, etc.--then comprehensively evaluates 60 60 40 40 20 0 Input cost High-quality products Material losses (positive products)(negative products) Total 5557 ■Resource Inputs and Emission-Related Environmental Impacts Associated with Business Activities Resource/energy input volumes(inputs) Item Volume Unit Change Item Volume Unit Change Energy 685,384 GJ ▲6% Chemical substances 433 t Electric power 60,049 MWh ▲6% Kerosene 1,358 kl ▲4% LPG 431,323 m3 ▲10% City gas 10,430 m3 0.7% Fluorochemicals Lubricants Cutting oil Paint PRTR substances 48 71 107 79 133 t kl kl t t Development Manufacturing ▲13% 0% 56% ▲11% ▲36% m 3 (tap/ground) Item Item Volume Unit Change ▲3% Transportation fuel 2,992 kl ▲15% 115,986 GJ ▲15% Volume Unit Change Raw materials 51,974 ▲19% t (metals) 〈Production item〉 Car air-conditioning compressors Materials procurement Volume Unit Change ▲8% Water 628,300 Sanden manufacturing plants 8225 Item Car air-conditioning systems Soft-drink vending machines Refrigerated showcases Freezer showcases Eco Cute ※ Two-way communications modems Distribution Environmental Accounting Regarding environmental protection benefits, we 80 Investment Expense 1)Business Area Costs Breakdown encompasses environmental costs associated with Major activities and effects (from guidelines) ■Energy cost ■System cost ■Material cost Environmental Activities environmental accounting activities at all Group 100 products and systems, the rise in environmental protection costs reflects capital investments ■Sanden Group Environmental Performance Data 685,384 associated with the construction of the Sanden 563,847 511,314 501,229 ■Parent Company Environmental Protection Costs over Six Years (Millions of yen) 8,225 8,000 7,000 5,697 Europe 6,000 22,096 1,692 Asia 17,064 8,235 5,019 Domestic Parent Company Group Companies 7,777 America 4,000 3,000 2,000 2,032 2,338 1,000 0 1,788 1,698 2003 2004 2005 2006 2007 2008(FY) 30 SANDEN CSR REPORT 2009 Item Volume Unit Change 29,026 t-CO2 ▲6% HFCs 4,818 t-CO2 9% Volume Change Gases emitted into atmosphere 122.6 t SOX 0.6 t NOX 77.7 t Soot 44.3 t Toluene/xylene Others t Item Volume Change ▲35% Water-related emissions 13.7 t 0% 113.9 t ▲37% Wastewater 628,300 1.6 COD Volume Unit Change CO2 emissions volume 7,930 t-CO2 ▲15% m3 t BOD 1.5 t Total nitrogen Total phosphorus 5.6 0.4 t t Item Item Volume Unit Change Waste product emission volume 5,019 t ▲5% ※” Eco Cute”is the nickname given to CO2 natural refrigerant heat pump hot water supply systems that have been promoted by electric power companies and by companies manufacturing and marketing these units. 1,279 Note: Environmental protection costs include environmental protection investments and environmental protection costs. Volume Unit Change Item Japan 5,000 Item CO2 29,026 23,647 environmental impact substance emission volumes(outputs) Greenhouse gases 33844 t-CO2 ▲3% Chemical substances127.6 420,548 23,171 9,000 ■■ Energy use (GJ) ■■ Energy use (tons of CO2) ■■ Waste product emissions (tons) ※Figures for Sanden Mexicana S.A. de C.V. (SMX)―which became a consolidated subsidiary in May 2008―are newly included in the Americas region beginning with this report. SANDEN CSR REPORT 2009 31 Environmental Activities Environmental Impact Reduction Efforts (Eco-Factories) Energy Conservation Case Study ■Energy Saving in centered on measures to improve waste product management. products by proactively responding to such EU regulations as Manufacturing Operations Noteworthy accomplishments in this area include ELV*1, RoHS*2, and REACH*3. Regarding the response to ELV Sanden's basic concept in its environmental activities is“ to (1) the development of lighter products and research of new and RoHS regulations, we have completely discontinued the use eliminate every kind of waste.”Accordingly, we are continually component shapes to reduce waste materials generated by of regulated substances with the exception of a portion of lead- moving ahead with efforts to discover and eliminate various manufacturing processes; containing metals for which exemption items have been created. types of waste in our manufacturing operations, broadly defined (2) a reduction in the number of defective processed parts; Regarding the response to REACH regulations, we completed a as encompassing design, development, manufacturing, and (3) a reduction in packaging materials; and preliminary registration before December 2008. In addition, we assembly processes. To clarify problematic points in our energy (4) a shift to the generation of waste materials that can be have introduced a system for gathering the latest information conservation programs and the effectiveness of those programs, recycled rather than merely incinerated to produce energy. on chemical substances and supporting our responses to new we have adopted CO 2 emissions as a unified index as well as In fiscal 2008, we moved ahead with measures to reduce regulations in Japan as well as overseas. a fixed methodology for converting various measures into CO 2 product weights, employ MFCA to discover and improve emissions equivalents. Moreover, we are carefully monitoring our processing losses, and reduce losses associated with quality ■Reducing Usage of Hazardous Substances progress in reducing this index. problems in processing processes. As a result, we were able to Sanden employs six substances covered by Japan's Pollutant In fiscal 2008, amid sharp drops in manufacturing volumes reduce the volume of waste product emissions to 5,019 tons, Release and Transfer Register (PRTR) system. While we had due to the impact of the worldwide recession, we continued down 270 tons (5%) from the previous fiscal year. In addition, the employed dichloromethane in cleansing equipment until the previous year, we had completely discontinued the use of that companies) maintained their zero-emissions performance. substance by the end of fiscal 2008. As a result, the volume of hazardous substances handled by the Company in fiscal 2008 ■Reducing Water Usage Volume addition, we moved ahead with such new activities as those to Having set itself the goal of reducing its water usage to levels temporarily suspend manufacturing operations and eliminate equal to or below the level in the specified base year (2005), the ■Promotion of Green energy losses from facilities not in use. Company has worked to decrease its water usage volume. In Procurement Activities The parent company's CO2 emissions amounted to 29,000 tons, fiscal 2008, the water usage volume amounted to 610,000m 3, Promoting environment-friendly business activities requires down 6% from the previous fiscal year. However, emissions per which was 5% below the level in the base year. coordination with suppliers. Based on its fundamental policy on environmental activities and its positive efforts to obtain the cooperation of its suppliers, Sanden has drafted green ■Resource Conservation in As a global company, Sanden is moving ahead with its procurement guidelines and is giving particular attention to Manufacturing Operations manufacturing operations based on a fundamental policy of moving forward with activities designed to reduce the use of Sanden's resource conservation and recycling activities are working to reduce the amounts of hazardous substances in its harmful substances. ■ Sales offices ■ Factories ■Resource Reuse Ratio and Total Waste Material Volume at Factories Monetary unit emissions(%)(%) 160 30 25 100 91 79 80 20 87 89 96 101 99 96 98 87 89 99 6.00 99.3 99.5 6.48 5.52 99.7 6.25 (%) 99.7 99.7 99.7 4.86 5.29 99.8 5.02 2.00 10 5 90 -40 96 97 98 99 00 01 02 03 04 05 06 07 08(Fiscal year) 0 02 03 04 05 06 07 400,000 1,1-dichloro-1-fluoroethane (HCFC-141b) Dichloromethane Water Soil Total Off-site Sewerage Total Amount Eliminated Through Processing Amount Recycled 3.7 1.3 0.0 0.0 1.3 0.4 0.0 0.4 0.0 2.0 108.2 99.3 0.1 0.0 99.4 5.3 0.0 5.3 0.0 3.5 Ethylbenzene 3.2 2.0 0.0 0.0 2.0 1.2 0.0 1.2 0.0 0.0 Xylene 6.4 4.0 0.0 0.0 4.0 2.4 0.0 2.4 0.0 0.0 Toluene 5.4 3.4 0.0 0.0 3.4 2.0 0.0 2.0 0.0 0.0 3.9 3.8 0.0 0.0 3.8 0.1 0.0 0.1 0.0 0.0 130.9 113.8 0.1 0.0 113.9 11.4 0.0 11.4 0.0 5.5 Methylbis(4,1-cyclohexylene) =diisocyanate Total 32 Air Amount Transferred SANDEN CSR REPORT 2009 633,953 643,918 595,149 0% 610,054 -2% -5% 300,000 -5% -10% -8% 200,000 -15% 0 08(Fiscal year) 100,000 (Metric tons) Amount Released ■ Water usage volume Percentage of base-year level 600,000 0 ■ Fiscal 2008 PRTR Data Amount Handled 700,000 40 Note: Through the previous year, CO 2 emissions were reported based on the value of processed items. From fiscal 2008, the level of emissions is reported based on net sales units. Chemical (m3) 500,000 20 1.00 ■Reduction of Water Usage Volume 60 4.00 3.00 10 100 80 5.54 5.00 60 15 0 8.00 7.00 110 Resource reuse ratio ■ Volume of waste materials (Thousands of metric tons) are currently operating such equipment with compressed air at a pressure of 0.3 Mpa. We have also implemented such energy conservation measures as those to equip with measures to conserve energy by increasing the efficiency of ovens used to bake the paint of vending machines. Having previously taken measures to prevent heat radiation from the paint-baking units, in fiscal 2008, we tested the optimal paint-baking conditions using dummy products and were thereby able to realize additional improvements in energy conservation performance. hydraulic oil units and other processing-related equipment with inverters as well as to make schedules for the intermittent shutting down of cleaning unit blowers and conveyers in line Water Conservation Case Study with work schedules. Natural Resources Saving Case Study ■Management of Hazardous Substances 35 conveyance equipment―we have worked to lower the air pressure as much as possible. We The Akagi Plant's manufacturing technology subcommittee is moving ahead fell to 37% below the level in fiscal 2007. unit of net sales increased 12% from the previous year's level. (Thousands of metric tons) applications in which lowering the air pressure has little impact on product quality―such as ■Akagi Plant 05 06 07 Maksymilian Trochanowski, Building Maintenance Manager Isamu Kato, Environment Manager As SMP, we have been introducing a factory facility monitoring system to promote ■Sanwa Precision Co., Ltd. the visualization of waste. In fiscal 2008, we network-linked our monitoring systems Sanwa Precision is implementing an“It's a Shame to Waste”campaign that for water supply and drainage systems associated with die casting, machining, centers on an expanded version of the 3R (reduce/reuse/recycle) concept. We and assembly processes, enabling us to build a comprehensive management have added“refuse”(refuse to make waste),“repair,”and“refine”(improve waste- system. This has made it possible to quickly discover facility problems as well as sorting processes) to the 3R concept to create our 6R concept. By looking at each to take preventative maintenance measures. We have been able to take effective work site several times and making a detail examination, we have identified latent countermeasures against transitory equipment glitches and achieve reductions “It's a Shame to Waste”issues and worked to rectify them. In addition, all of our in the volume of water and energy we use. Going forward, we have the goal of employees are participating in our“valuable waste gleaning”proposal submission achieving zero waste associated with water supply and drainage system problems, campaigns, and we present awards to those who make the best proposals. thereby decreasing our wastewater costs by 15%. Environmental Education Case Study ■ATP(Automotive Air-conditioning Technology -20% 08(Fiscal year) Notes: 1. T h e E LV r e g u l a t i o n s a r e a u to m o t i ve r e c yc l i n g regulations implemented by the EU in October 2000. They regulate the amount of lead, mercury, hexavalent chromium, and cadmium that may be used. 2. The RoHS regulations are hazardous substance regulations implemented by the EU in July 2006. In principle, they prohibit the use in electric and electrical products within the EU of lead, mercury, cadmium, hexavalent chromium, polybrominated biphenyls (PBBs), and polybrominated diphenyl ethers (PBDEs). 3. The REACH regulations are EU regulations requiring manufacturers to undertake the registration of chemical substances, safety evaluations, usage restrictions, and usage permits. Implemented in June 2007, these regulations cover companies with a presence in the EU as well as companies that export to the EU. ■SMP(Sanden Manufacturing Poland Sp.z.o.o) Philippines,lnc.) ■LSP(Laguna Air-conditioning System Philippines,lnc.) Both ATP and LSP have established an Earth Day environmental Environmental Impact Reduction Efforts (Eco- Factories) intermittently, and increasing the efficiency of heating ovens. In ■Sanden (Parent Company) CO2 Emissions The Yattajima Plant has sustained the implementation of energy conservation measures Environmental Activities parent company and the other domestic Group companies (six introducing energy-conserving air nozzles, operating facilities ■Yattajima Plant We generally employ compressed air at a pressure of 0 . 4 Mpa. However, for the setting air compressors to lower pressures, more-broadly Kiyoaki Yoshii, Environment Manager Kenichi Ida, Environment Manager in its factory facilities. with previously initiated energy conservation measures involving Energy Conservation Case Study education program for employees that is implemented each April. The program employs posters that explain about the global environmental problems stemming from global warming along with methods for alleviating those problems. This program has increased employees' knowledgeability Raldy Almonia, Environment Manager about global environmental issues and is promoting initiatives to improve work processes. SANDEN CSR REPORT 2009 33 Environmental Activities Profile The Sanden Forest ■Sanden Forest/Akagi Plant meaning that the complex does not generate any waste ■A Venue for Integrated Our Sanden Forest/Akagi Plant is located on a products that are disposed of as waste products. Educational Programs Directors Masayoshi Ushikubo Director & Chairman Director & Senior Corporate Officer Mitsugi Takahashi Director & Senior Corporate Officer Kiyoshi Suzuki Director & Vice Chairman Yoshimasa Hayakawa Director & Senior Corporate Officer Shinji Ushikubo Director & President ■Environmental Monitoring Survey the Sanden Forest available for nature experience Director & Executive Corporate Officer Akira Nozawa by the Akagi Plant grounds, while the other half We have been implementing activities aimed at educational programs as well as for integrated comprises the Sanden Forest. It is a concrete realization increasing the number of species in the local ecosystem Director & Executive Corporate Officer Kin-ei Kanda education programs provided to primary and Director & Corporate Officer Katsuya Nishi of our“manufacturing in harmony with nature”concept. to a number higher than the level when the preparations middle-school students making study visits to the Director & Executive Corporate Officer Yuichi Yasui Director (Outside) Currently, Sanden Forest/Akagi Plant encompasses for constructing the complex began in 1998 . We Akagi Plant. More than 4,000 primary and middle- facilities for manufacturing vending machines, retail conducted environmental assessments prior to beginning school students visit the forest each year. store systems, eco systems, and car air-conditioning development, and we have subsequently implemented compressor components as well as a logistics monitoring surveys at regular intervals. processing center. Beginning from early facility planning stages, the Director & Senior Corporate Officer Hideki Isetani Isao Tada Auditors Statutory Auditor (Outside) Mitsuhiko Iwasaki ■Cooperation with Local Communities Statutory Auditor (Outside) Takuji Tsuchikane Statutory Auditor (Outside) Kazunori Kiuchi As can be seen from the chart below, our fourth natural In cooperation with Gunma Prefecture, we have Statutory Auditor (Outside) Akinobu Hatsushika environment survey in 2008 has found that the site's assigned long-term societal experience training complex was developed based on due concern for biodiversity has generally recovered and surpassed instructors to create and improve nature experience Corporate Officers the environment with the guidance of C.W. Nichols, levels observed before the complex was created. education programs. In addition, we make use a well-known writer and naturalist; Professor Shubun Such butterfly species that had previously been close Executive Corporate Officer Jun-ichi Mitsui of the Sanden Forest to strengthen our ties and Fukudome, an eminent promoter of natural construction to extinction in the region―such as the great purple communication with local communities through methods; and other leading intellectuals. emperor and Luehdorfia puziloi―have grown in number In constructing facilities, we were the first private- sector company to employ large-scale, close-to-nature Corporate Officer Hisao Nakajima Mitsuya Yamamoto Corporate Officer Tatsuo Sato programs undertaken in cooperation with such Corporate Officer Hidenori Imamura Corporate Officer Yasushi Ejima and can be observed by people with an interest in NPOs as the Akagi Club and the Clean/Green Eco Corporate Officer Seiichi Sakamoto Corporate Officer Nami Otsuka lepidopterology. Network. Regarding vegetation, we have found that the number Corporate Officer Masami Yamaguchi Corporate Officer construction methods. In areas near factory buildings, Tsutomu Sakakibara The Akagi Nature School, an NPO established in we have taken measures to improve the natural of species has clearly increased since the forest was March 2009, uses the entirety of Akagi Mountain for Corporate Officer Robert Kheng environment and ecosystems through the establishment landscaped. Such rare species as coleus and semburi its new environmental program, which is designed of biotope ponds and other measures that have had have increased in forested areas, while the biotope pond to promote“people building.” the effect of improving the appearance of the area. has developed a grove of Japanese fantail willow. By means of the Sanden Forest, Sanden Having discovered rare species of plants during our Regarding birds, the biotope pond has attracted a i s g e n e r a t i n g p o s i t i v e re s u l t s i n re s o l v i n g environmental enhancement work, we have taken care to growing number of duck species, and we have also environmental issues in the vicinity of Akagi replant those plants in ideal locations within the complex confirmed visits by species as the tufted duck, hawfinch, Mountain while also proactively supporting and have continued to provide those plants with due and white-cheeked starling as well as such predators various participational events for people in local 200,000 maintenance care measures. as the goshawk, sparrowhawk, common buzzard, and communities as well as promotional activities. In addition, since the site preparation stage, we have common kestrel. A large increase was also noted in 150,000 △12,000 150,000 maintained zero-emissions performance at the complex, butterflies and dragonflies. 100,000 △18,000 100,000 ■Natural Environment Survey Results 1998 2002 (before landscaping) 2004 2008 347 391 Plant species 366 Mammal species 7 7 8 7 Bird species 54 38 46 53 Amphibian/ reptile species 10 Dragonfly species Butterfly species 317 ■The Sanden Forest Great purple emperor 12 38 SANDEN CSR REPORT 2009 11 21 19 31 10 20 33 250,000 231,371 242,517 Students can stroll along paths while observing nature (Millions of yen) 216,690 2005 2006 2007 2008(FY) 10,000 The Akagi Club NPO Creating things from the forest's wood to stimulate children's Trees and rocks were all creativity re-used from landscaping 5,019 △30,838 △36,000 7,500 0 4,500 △40 2,310 △9,457 2005 2006 2007 2008(FY) △7,500 △200 △10,000 △240 2005 2006 2007 2008(FY) 208,692 0 2005 2006 2007 2008(FY) (%) 18.90 50 36.82 40 △22.66 30 △120 △5,000 237,815 ■Consolidated Capital Ratio △80 △160 247,852 50,000 ■Net Income per Share 40 250,000 232,512 200,000 (Yen) 9,140 △2,500 Acorn Plaza 2,576 △30,000 0 Waterways 0 △3,099 △24,000 (Millions of yen) 2,500 6,000 ■Total Assets (Millions of yen) △6,000 50,000 5,000 Water flows naturally from the ground through small streams, attracting wildly dancing fireflies in the summer ■Consolidated Net Income 263,728 ■Consolidated Ordinary Profits Log tables 6 ■Consolidated Net Sales (Millions of yen) 0 Nature Experience Education 7 Financial Data Biotope pond A pond created to help restore ecosystems The Sanden Forest Corporate Officer Environmental Activities Statutory Standing Auditor Takashi Oya List of Directors and Corporate Officers / Financial Data Kazuyuki Suzuki We have made the rich natural environment of Akagi in Gunma Prefecture. Half of the site is occupied 641,000m2 tract of land on the southern slopes of Mt. 34 List of Directors and Corporate Officers Profile New Base for Challenges, Creation, and Contribution We Plan to Move Forward in Step with This Forest List of Directors and Corporate Officers / Financial Data 33.3 32.9 32.4 20 19.4 10 △226.20 2005 2006 2007 2008(FY) 0 2005 2006 2007 2008(FY) SANDEN CSR REPORT 2009 35 Profile List of Directors and Corporate Officers/History of the Sanden Group Sanden Has Consistently Provided Support for 1940 1980 Sanden's History Began with the Manufacture of Bicycle Lights with Power Generators. Name of the Company Changed from "Sankyo Denki" to "Sanden." Sanden Begins to Establish a Reputation as an International Company. July 1943: Sankyo Denki Co., Ltd., was established where Sanden's Gunma Headquarters is located today, with paid-in capital of ¥198,000. The Company began operations with the production of plastic molded parts for wireless telecommunications equipment as well as mica condensers and paper condensers. January 1980: Sankyo International opened a branch in Taiwan. 1948: Began production of bicycle lights equipped with small generators. March March 1981: Began production of scroll compressors for car air conditioners. September1981: Established subsidiary Sanden International Taiwan Corporation, in Taiwan, with paid-in capital of 6 million Taiwan dollars. October 1982: Established production plant for car air conditioner compressors at Sankyo International (Singapore). Name of Sankyo Denki changed to Sanden and name of Sankyo International changed to Sanden International Co., Ltd. July 1983: Established Sanden International (Malaysia) Sdn. Bhd. November1983: Held the First Sanden Culture Lecture. 1984: New trademark announced as part of the introduction of a corporate identity program. 1950 April 1985: Began sales of central heating and ventilating systems for households. May 1987: Commenced sales of variable displacement compressors. Sanden Starts Production of Freezer and Refrigeration Equipment. Development of Showcases that Let You See Inside July 1987: Formed Sanden Trading Co., Ltd. August 1987: Established Sanden System Engineering Co., Ltd. April 1952: With the establishment of the Japan Industrial Standards (JIS) organization, Sankyo Denki adopted the low-voltage method to extend the life of electric light bulbs and its plant for manufacturing these lights received certification from the JIS. February 1988: Founded P.T. Sanden Jaya Indonesia June 1956: Began manufacturing small motors, electric washing machines, and other household electric appliances. The marketing division was moved to Tokyo. December1989: Founded first overseas showcase production company, Sanden Refrigeration Thailand June 1958: Began production of frozen ice cream stockers and freezer showcases. Thereafter, succeeded in developing the first showcases in the industry that displayed the contents inside, and these became a hit product. 1960 Sanden Accumulates Technology for "Cooling and Heating" and Puts It to Work in Vending Machines, Oil Heaters, and Other Products. October 1961: Began production of fountain-style juice vending machines August 1962: Listed shares on the Second Section of the Tokyo Stock Exchange July 1963: Commenced manufacturing of pop-type kerosene heaters February 1965: The Sankyo Denki marketing department was split off as a separate company to establish Sankyo Sales Co., Ltd. In 1961, as Sanden sales of freezer and refrigerator showcases were advancing smoothly, the Company developed an original, fountain-style juice vending machine. Sankyo Denki, which by this time has established an unshakeable position in cooling technology, developed a kerosene heater in 1963. Thereafter, Sankyo Denki also succeeded in developing the world's first heaters that did not pollute room air, based on the clean, forcedexhaust principle, and continued to accumulate technology for both cooling and heating. 1988: Acquired Bender Inc. of the United States, a manufacturer of vending machines August 1989: Began production of compressors in Wylie, Texas, in the United States In 1981, Sanden developed the world’s first scroll-type compressor and changed its Company name from Sankyo Denki Co., Ltd., to Sanden Corporation, to match its brand name. In addition, a new building was completed to house its Headquarters, and the Company introduced a corporate identity (CI) program. Also, in 1988, Sanden acquired Vendo Corporation, the second-largest automatic vending machine manufacturer in the United States, thus becoming an international enterprise with production and sales bases around the world. 1990 Taking the Lead in Environmental Preservation with Completion of ISO 14001 Certification July 1990: Sanden Communication Plaza completed. August 1992: Sanden Teko, Ltd., established in Thailand. February 1993: Sanden's heat-accumulating, energy-saving system for beverage vending machines won an award by the head of Japan's Resource and Energy Agency. June 1993: Sanden International (China) established. April 1995: Sanden Manufacturing Europe S.A.S. established in France. August 1995: Sanden International (Philippines), Inc. established. October 1996: Sanden's plant in France went into operation. Sanden receives a prize from the U.S. Environmental Protection Agency (the EPA Prize) for contribution to protecting the ozone layer. 1970 Sanden Began Production of Compressors and Took Its First Steps into the World Market. June 1970: Concluded a technical tie-up for compressors used in car coolers with John E. Mitchell, Inc., of the United States March 1971: Began production of car coolers and SD compressors for car coolers. Commenced manufacturing of vending machines for canned beverages. August May 1971: Concluded technical tie-up with Warren, Inc. Began sales of large showcases for use in supermarkets. April 1997: Three Group companies—Sanden Corporation, Sanden Sales, and Sanden International—merged and got off to a new start as Sanden Corporation. January 1998: Sanden's Gunma Headquarters and the Kotobuki Plant obtained ISO 14001 certification. October 1998: Sanden received the Deming Prize. July 1999: All sales offices obtained ISO 14001 certification. November1999: The founder, Kaihei Ushikubo (Supreme Advisor to the Company at that time) passed away. October 1971: Commenced production of vending machines for cup instant noodles. August 1973: Introduced new "Sanden" brand. Sankyo Denki shares listed on the First Section of the Tokyo Stock Exchange. November1974: Established Sankyo International Co., Ltd., with paid-in capital of ¥10 million. Opened a branch of Sankyo International in Singapore. Founded Sankyo International (U.S.A.), Inc., with paid-in capital of US$10,000. December1977: Established Sankyo International (Singapore) Pte. Ltd. with paid-in capital of 50,000 Singapore dollars. 1978: Founded Sankyo International (Australia) Pty. Ltd. with paid-in capital of 50,000 Australian dollars. December1978: Opened a branch of Sankyo International in the United Kingdom. October 1979: Established Sankyo Denki Denso Co., Ltd., for production of bicycle lights equipped with small power generators, with paid-in capital of ¥50 million. In 1969, Sanden heard of the possibility of a tie-up with Mitchell, Inc., of the United States and moved quickly to begin production the very next year, thus moving into the car air conditioner field. In 1973, Sanden listed its shares on the First Section of the Tokyo Stock Exchange and changed its brand name to "Sanden." Thereafter, Sanden set up operations overseas in one location after another and expanded its compressor production and marketing activities all over the world. 36 SANDEN CSR REPORT 2009 June August 2000: Sanden formed a joint venture with Shanghai First Machinery Co., Ltd.) 2000: Three business locations in Japan—the Kotobuki Plant, the Yattajima Plant, and the Sakai Plant attained zero emissions status. October May April October November April August November January 2000: 2001: 2002: 2002: 2002: 2003: 2003: 2003: 2004: April 2004: Sanden Manufacturing Poland Sp. z.o.o.established as Sanden's second compressor manufacturing plant in Europe. April 2004: The Akagi Plant received the "Green Day Minister's Award for Work Contributing to the Natural Environment. In China, Shenyang Sanden Sanden Manufacturing Poland Sp.z.o.o. Automotive Air-Conditioning Co., Ltd., established as Sanden's fourth joint venture in China. Began to supply car air conditioners to Chinese automobile manufacturers. August January 2004: Announced development of vending machines using non-CFC, CO2 refrigerant. 2005: Sanden's Star Master system for controlling temperature and humidity automatically in retail stores won an award for its energy-saving features. March June October April October 2005: 2005: 2005: 2006: 2006: November 2006: June 2007: July 2007: September2007: October 2007: March 2008: April 2008: Technical center established in Germany. Sanden's cumulative production of compressors exceeded 100 million units. Sanden Forest and the Akagi Plant completed. German Technical Center (Sanden Technical Centre (Europe) GmbH) Received Japan Quality Control Prize. Akagi Plant received the "Advanced, Excellent Plant Award." One of the co-founders, Washinosuke Amada (Advisor to the Company at that time) passed away. Sanden marked its 60th anniversary. Received the "TPM World Class Award." Shanghai Sanden Behr Automotive Air Conditioning Co., Ltd., established and production of compressors for car air conditioners by the company began. SandenVendo America, Inc., established as a new logistics center in the United States. Received the European Top Investment Award at the Third World Investment Conference. Entered the EcoCute water heater business. Sanden's cumulative production of vending machines exceeded two million units. Sanden International (U.S.A.) and Sanden International (Singapore) received the Deming Prize Implementation Award. Received the Third Japan-France Investment Award. Received highest environmental rating rank of the Development Bank of Japan Inc. Entered the food equipment business Began operating an automobile air-conditioner component plant in Toyohashi, Aichi Prefecture Chairman Masayoshi Ushikubo received the Deming Prize Hibiscus Award Sanden Football Park established Certified to have attained Excellent Stage 3 of the 2008 SEGES (Social and Environmental Green Evaluation System) September2008: Sanden Global Center established Fifth Asahi Corporate Citizen Award received Sanden (Suzhou) Precision Parts Co., Ltd., established October 2008: Sanden Forest/Akagi Plant receives METI Minister's Award in Excellent Greenification Plant Award program SEGES Certificate December 2008: World-standard Glass-Front Vendor Series (GFV) products launched March 2009: Akagi Nature Club established April 2009: Business in pharmaceutical showcase field initiated October 1973: The name of Sankyo Sales Co., Ltd., was changed to Sanden Sales Co., Ltd. August Doing Our Best for Quality and the Natural Environment through Challenge and Reform around the Globe List of Directors and Corporate Officers / History of the Sanden Group April 2000 Profile It was July 1943. With Japan at war, private factories were faced with the choice of shifting to production of goods to satisfy military needs or go out of business. Kaihei Ushikubo, the operator of a textile mill, went into the production of parts for telecommunications equipment and mica condensers. This is how the predecessor of today's Sanden Corporation, Sankyo Denki Co., Ltd. (SD), came into being. After the war, our predecessors took a hint from watching employees commute to work on bicycles and made the transition to the production of bicycle lights equipped with small electric power generators. These were marketed under the trademark of an owl, a bird known for being able to see at night, and under the catchphrases "Providing a Second Sight in the Dark of Night" and "1,000 Times Brighter than a Full Moon." In 1953, the factory produced about 30,000 units a month and established an unshakeable position in the light-with-generator industry. October 1980: Sankyo International (U.S.A.) established a plant in the United States for manufacturing compressors for car air conditioners. Comfortable Lifestyles. Our History of Challenge and Reform Is Leading Us to New Dimensions. Deming Prize plant in France In 2002, Sanden completed the Sanden F o re s t a n d A k a g i P l a n t , c re a t e d around the concept of symbiosis w i t h t h e n a t u r a l e n v i ro n m e n t . I n 2008, the Sanden Global Center was opened. Aiming to realize additional growth, Sanden is daily continuing to implement reforms and address new challenges. Sanden Forest Sanden Global Center of Technology SANDEN CSR REPORT 2009 37 Profile List of Sanden Business Locations <Headquarters and Production Plants> <Affiliated Companies> <Overseas Group Companies> Gunma Headquarters:20 Kotobuki-cho, Isesaki-shi, Gunma 372-8502 Tel: 0270-24-1211 SD Maintenance Co., Ltd., Headquarters : 4-23-8, Itabashi, Itabashi-ku, Tokyo 173-0004 Tel: 03-5375-3251 EUROPE SD Maintenance Co., Ltd., Hokkaido Branch : 10-23, Hassamu 15-Jyo, 4-chome, Nishi-ku, Sapporo-shi, 063-0835 Tel: 011-668-0330 Am Taubenbaum 35-37, 61231 Bad Nauheim, Germany Tel: +49-6032-80300 Fax: +49-6032-8030200 Tokyo Headquarters:1-31-7, Taito, Taito-ku, Tokyo 110-8555 Tel: 03-3833-1211 Akagi Plant :7 Nakanosawa, Kasukawa-machi, Maebashi-shi, Gunma 371-0201 Tel: 027-280-9800 Toyohashi Plant :48-5, Azakubota, Oiwa-cho, Toyohashi-shi, Aich, 441-3134 Tel: 0532-65-7567 <Sales Offices in Japan> Kita Tohoku Branch:9-14, Minami 3-chome, Ryutsu Center, Yahaba-machi, shiwa-gun, Iwate 020-0891 Tel: 019-638-1572 Aomori Sales Office:6 F, Mitsui Seimei Aomori Bldg., 1-4-17, Honcho, Aomori-shi, Aomori 030-0802 Tel: 017-777-5696 Tohoku Branch :3-7-4, Oroshi-cho, Wakabayashi-ku Sendai-shi, 984-0015 Tel: 022-236-1611 Kanto Branch :Nakanosawa 7, Kasugawa-cho, Maebashi-shi, 371-0201 Tel: 027-280-9350 Utsunomiya Sales Office:13-4, Moto Imaizumi 2-chome, Utsunomiya-shi, 321-0954 Tel: 028-662-2161 Nagano Branch :5-47, Shonai 2-chome, Matsumoto-shi, 390-0828 Tel: 0263-26-5628 Niigata Branch :848-30, Oroshi Shinmachi, 2-chome, Niigata-shi, 950-0863 Tel: 025-273-8187 Tokyo Branch :31-7, Taito 1-chome, Taito-ku, 110-8555 Tel: 03-3833-1517 Higashi Kanto Branch:Aiba Building 7F, 2-24, Makuhari Hongo 1-chome, Hanamigawa-ku, Chiba-shi, 262-0033 Tel: 043-276-8571 Saitama Branch :67-8, Higashi Omiya 4-chome, Minuma-ku, Saitama-shi, 337-0051 Tel: 048-651-1210 Kanagawa Branch :Yokohama Landmark Tower 1810, 2-2-1-1, Minato Mirai, Nishi-ku, Yokohama-shi, 220-8118 Tel: 045-225-6371 Tokai Branch :17-17, Tsurumai 2-chome, Showa-ku, Nagoya-shi, 466-0064 Tel: 052-884-7221 Shizuoka Branch :Shizuoka Shinyo Kinko Ishida Branch Building, 6F, 1-46, Ishida 1-chome, Suruga-ku, Shizuoka-shi, 422-8042 Tel: 054-283-3640 Hokuriku Branch :26-1, Tonya-machi 1-chome, Kanazawa-shi, 920-0061 Tel: 076-237-8155 Kansai Branch :KYUHO Esaka Building 7F, 1-43, Esaka-machi 2-chome, Suita-shi, 564-0063 Tel: 06-6339-2511 Shikoku Branch :Tsuruichi-machi 2047-5, Takamatsu-shi, 761-8032 Tel: 087-882-5577 Matsuyama Sales Office:2F, Yamauchi SKY Bldg., 6-16, 6-chome, Edamatsu, Matsuyama-shi, Ehime 790-0962 Tel: 089-933-4319 Chugoku Branch :Kouden Mitsui Sumitomo Kaijo Building 6F, 9, Nishi Toka-machi 9-chome, Naka-ku, Hiroshima-shi, 730-0806 Tel: 082-232-3220 Okayama Sales Office:12-26, Hamano 1-chome, Okayama-shi, 700-0845 Tel: 086-263-7161 Kyushu Branch :2-32, Sanno 1-chome, Hakata-ku, Fukuoka-shi, 812-0015 Tel: 092-471-1071 Okinawa Sales Office:Maison Kuni Rm. 101, Kuniba 1167-2, Naha-shi, 902-0075 Tel: 098-834-4272 Minami Kyushu Branch:41-8, Takadaira, 3-chome, Kumamoto-shi, 860-0085 Tel: 096-344-2636 Miyazaki Sales Office:No. 3, 1-8-2, Jingu-higashi, Miyazaki-shi, Miyazaki 880-0056 Tel: 0985-27-3917 Kagoshima Sales Office:No. 3 Asahi Building 1F, 13-3, Shimoarada 4-chome, Kagoshima-shi, 890-0056 Tel: 099-258-3288 38 SANDEN CSR REPORT 2009 SD Maintenance Co., Ltd., Kanto Branch : Koyagi-cho 760-1, Takasaki-shi, 370-0071 Tel: 027-370-1281 SD Maintenance Co., Ltd., Tokyo Branch : 23-8, Itabashi 4-chome, Itabashi-ku, 173-0004 Tel: 03-5375-3251 SD Maintenance Co., Ltd., Tokai Branch : Minamino 3-95, Minami-ku, Nagoya-shi, 457-0068 Tel: 052-614-8411 SD Maintenance Co., Ltd., Tokai Branch Gifu Sales Office : 3-145 Tokuda, Ginan-cho, Hashima-gun, Gifu 501-6016 Tel: 058-277-7505 SD Maintenance Co., Ltd., Tokai Branch Mikawa Sales Office : 4-109 Honnogahara, Toyokawa-shi, Aichi 442-0005 Tel: 0533-80-2530 SD Maintenance Co., Ltd., Tokai Branch Mie Sales Office : 2819-3 Aza daishinden, Takajaya Komori-cho, Tsu-shi, Aichi 514-0817 Tel: 059-234-1008 SD Maintenance Co., Ltd., Kansai Branch : 2-5, Takai Tanaka 1-chome, Higashi Osaka-shi, 577-0065 Tel: 06-6787-8165 SD Maintenance Co., Ltd., Kansai Branch Kobe Sales Office : Seryfiyu Hyogo Rm. 101, 5-2-7 Mizukidori, Hyogo-ku, Kobe-shi, Hyogo 652-0802 Tel: 078-511-5360 SD Maintenance Co., Ltd., Kansai Branch Himeji Sales Office : 226-4, Tsugi, Himeji-shi, Hyogo 672-8004 Tel: 079-246-7202 SD Maintenance Co., Ltd., Kansai Branch Wakayama Sales Office : Dias Rm. E105, 51-3, Demizu, Wakayama-shi, Wakayama 690-8321 Tel: 073-475-5212 SD Maintenance Co., Ltd., Kyushu Branch : 41-8, Takadaira 3-chome, Kumamoto-shi, 860-0085 Tel: 096-344-2799 Sanden Denso Co., Ltd. : Akabori Kajima-machi 603, Isesaki-shi, 379-2202 Tel: 0270-62-7201 Sanden Logistics Co., Ltd. : 7-2, Nakanosawa Kasukawa-machi, Maebashi-shi, 371-0201 Tel: 027-280-9500 Sanden Systems Engineering Co., Ltd. : Miyako-machi 3450-8, Isesaki-shi, 372-0801 Tel: 0270-21-9641 Sanden Real Estate Co., Ltd. : Kotobuki-cho 83, Isesaki-shi, 372-0052 Tel: 0270-26-5124 Sanwa Co., Ltd. :Ninomiya-cho 575-1, Maebashi-shi, 379-2117 Tel: 027-268-2231 Sanwatech Co., Ltd.:Nitta Omachi 650-1, Ota-shi, 370-0351 Tel: 0276-57-4000 Sanwa Fabtech Co., Ltd. : 7, Nakanosawa, Kasukawa-machi, Maebashi-shi, 371-0201 Tel: 027-280-9715 Sanwa Precision Co., Ltd. : 224-2, Naganuma-cho, Isesaki-shi, Gunma, 372-0855 Tel: 0270-31-0731 Sanwa Thermotech Co., Ltd. : 1204-5, Ichiba-machi 2-chome, Isesaki-shi, 378-2211 Tel: 0270-62-5386 Sanwa Altech Co., Ltd. : Naganuma-cho 224-1, Isesaki-shi, 372-0855 Tel: 0270-31-4131 Sanwa Coatech Co., Ltd. : Hashie-machi 4138-1, Isesaki-shi, 372-0001 Tel: 0270-24-4438 Sanden Facility Co., Ltd., Forest Office : 7, Nakanosawa Kasukawa-machi, Maebashi-shi, 371-0201 Tel: 027-280-9700 Sanden Facility Co., Ltd., CP Office : Numawada 961, Honjo-shi, 367-0072 Tel: 0495-23-1211 Sankyo Kosan Co., Ltd. : 83, Kotobuki-cho, Isesaki-shi, Gunma 372-0052 Tel: 0270-26-4411 Regional Office in Germany Malerstrasse 10 38550 Isenbuttel,Germany Tel: +49-5374-91990-0 Oficina de Representacion en Espana Parque Empresarial San Fernando, Edificio Francia, Escalera B.1o, Ctra. Nal. II, Km 17.3, 28830 S. Fernando de Hernares, Madrid, Spain Tel: +34-91677-5293 Fax: +34-91677-5443 Regional Office in Italy Via De Gasperi 2/D, 10020 Cambiano (To), Italy Tel: +39-0116-672-148 Fax: +39-0116-672-148 Regional Office of Scandinavia Gothenburg Ostra Vagen 1, S-462,32 Vanersborg, Sweden Tel: +46-521-272764 Fax: +46-521-272765 Sanden Technical Centre (Europe) GmbH Am Taubenbaum 35-37, 61231 Bad Nauheim, Germany Tel: +49-6032-80300 Fax: +49-6032-8030200 Sanden International (Europe) Ltd. Hampshire International Business Park, Crockford Lane, Chineham, Basingstoke, Hants RG24 8WH, U.K. Tel: +44-1256-708888 Fax: +44-1256-708883 Sanden Automotive France S.A.S. Immeuble CADET DE VAUX 3 Allee Hector Berlioz 95130 Franconville,France Tel: +33-1-3931-0303 Fax: +33-1-3931-0282 Sanden Manufacturing Europe S.A.S. Le Quilliou, B.P.30, 35190 Tinteniac, France Tel: +33-2-99-45-58-58 Fax: +33-2-99-45-58-50 Sanden Manufacturing Poland Sp.z.o.o. ul.Fabryczna 11, Polkowice, 59-101, Poland Tel: +48-76-724-9114 Fax: +49-76-724-9107 SandenVendo GmbH Spangerstrasse 22, 40599 Dusseldorf, Germany Tel: +49-211-740390 Fax: +49-211-7488541 SandenVendo Europe S.p.A. Cavallino,2-15030 Coniolo Alessandria,Italy Tel: +39-0142-335-111 Fax: +39-0142-562-348 Shanghai Sanden Behr Automotive Air Conditioning Co., Ltd.* 347 Madang Road, Shanghai, 200025, the People's Republic of China Tel: +86-21-6384-3220 Fax: +86-21-6384-0914 Tianjin Sanden Automotive Air-Conditioning Co., Ltd. NO.8, XEDA NO.2 Avenue, Xiqing Economic Development Area, Tianjin 300385, the People's Republic of China Tel: +86-22-23889988-8022 Fax: +86-22-23889986 Sanden (Shanghai) Automotive Air-Conditioning Co., Ltd.* No.1900,Jin Sui Road, Shanghai 201206, the People's Republic of China Tel: +86-21-3898-4500 Fax: +86-21-5899-6866 Shenyang Sanden Automotive Air-Conditiong Co., Ltd.* No.16-1 Zhenxing Road, Dadong District, Shenyang 110045, the People's Republic of China Tel: +86-24-8826-1733 Fax: +86-24-8826-1700 Sanden Shanghai Refrigeration Co., Ltd. No.868, Kang Qiao Road, Pudong Shanghai 201315, the People's Republic of China Tel: +86-21-6806-6088 Fax: +86-21-6819-4997 Sanden (Suzhou) Precision Parts Co., Ltd Western side of Jinniu Road and the southern side of Linhu Road, Fenhu Economic Development Zone, Wujiang County, Jiangsu Province, China Tel:+86-512-8207-9990 FAX:0512-8207-9885 Sanden International Taiwan Corporation No. 2, 68 Alley, Nai Si Road, Lu Chu Hsiang, Tao Yuan Hsien, Taiwan, Republic of China Tel: +886-3-324-5043 Fax: +886-3-324-5049 Sanden International (Singapore) Pte. Ltd. Sanden House, 25, Ang Mo Kio Street 65, Singapore 569062, The Republic of Singapore Tel: +65-63113-113 Fax: +65-6482-4572 Automotive Air-conditioning Technology Philippines, Inc. Laguna Air-conditioning System Philippines, Inc. 102 Industry Drive Corner Progress Avenue, Carmelray Industrial Park 1, Canlubang, Calamba City, Laguna, Philippines Tel: +63-49-549-7957〜7963 Fax: +63-49-549-3235 Sanden (Thailand) Co.,Ltd. SandenVendo Benelux S.A. 1/11-12 Moo 5, Rojana Road, Tambol Karn-harm, Amphur Uthai, Ayutthaya 13210, Thailand Tel: +66-35-330-030 Fax: +66-35-330-037, +66-35-330-877 SandenVendo Iberia S.A. 97-97-1 Moo 3, Tambol Banmor, Amphur Pormburi, Singburi 16120, Thailand Tel: +66-36-538-190 Fax: +66-36-537-919 Avenue A. Van Oss 1, B21 1120 Brussels, Belgium Tel: +32-2-268-2595 Fax: +32-2-268-2862 CL/Sant Ferran, No.92 Pol. Ind., Almeda 08940 Cornella, Barcelona, Spain Tel: +34-93-474-15-55 Fax: +34-93-474-18-42 SandenVendo France S.A.S. 4, av de la Baltique-Silic 506, 91946 Courtaboeuf Cedex, France Tel: +33-1-6959-2500 Fax: +33-1-6959-2505 SandenVendo (UK) Ltd. Unit 17, The Basingstoke Enterprise Centre Westham Lane, Worting Road Basingstoke RG22 6NQ United Kingdom Tel: +44-1256-479-309 Fax: +44-1256-844-469 NORTH AMERICA Sanden of America Inc. Sanden International (U.S.A.) Inc. 601 South Sanden Boulevard, Wylie, Texas 75098-4999, U.S.A. Tel: +1-972-442-8400 Fax: +1-972-442-8700 Detroit Regional Office 47772 Halyard Drive, Plymouth, Michigan 48170, U.S.A. Tel: +1-734-459-1900 Fax: +1-734-459-1902 SandenVendo America, Inc. 10710 Sanden Drive, Dallas, Texas 75238 U.S.A. Tel: +1-214-765-9066 Fax: +1-214-221-7011 Sanden Mexicana S.A. de C.V. Consorcio Santek S.A. de C.V. Consorcio Teksan S.A. de C.V. Blvd.Vito Alessio Robles No.4451 Saltillo Coahuila CP25100,Mexico Tel: +52-844-288-4200 Fax: +52-844-416-4407 ASIA Sanden Corporation Mitsukura Tex Co., Ltd. : 4110-1, Mimuro-cho, Isesaki-shi, Gunma 379-2235 Tel: 0270-20-2720 Chongqing Representative Office 1-10-3, Building4, No.98, Xie Jiawan, Chongqing 400050, the People's Republic of China Tel: +86-23-6805-2125 Fax: +86-23-6805-2406 Asahi Sangyo Co., Ltd. : 948, Numawada, Honjyo-shi, Saitama, 367-0072 Tel: 0495-24-2181 Shanghai Representative Office Room.032, Floor 8th, HSBC Tower, No.1000, List of Sanden Business Locations Hokkaido Branch :Imon Sapporo Higashi Building 3F, 28-32, Higashi, Kita Nanajyo, Higashi-ku, Sapporo-shi, 060-0907 Tel: 011-721-3881 SD Maintenance Co., Ltd., Tohoku Branch : 37-27, Shirahagi-machi, Wakabayashi-ku, Sendai-shi, Miyagi 984-0048 Tel: 022-782-5171 Lu JiaRing Road.,PuDong New Area, Shanghai 200120, the People's Republic of China Tel: +86-21-6841-5880 Fax: +86-21-6841-5886 Profile Yattajima Plant :350 Yattajima-machi 350, Isesaki-shi, Gunma 372-8558 Tel: 0270-32-1321 Sanden of Europe GmbH Sanden Intercool (Thailand) Public, Ltd.* Sanden International (Malaysia) Sdn. Bhd. Plo212, Jalan Besar, P.O. Box 24, 81707 Pasir Gudang, Johore, Malaysia Tel: +60-7-251-3501 Fax: +60-7-251-3507 Sanden Air Conditioning (Malaysia) Sdn.Bhd. No.16, Jalan Pemaju U1/15, Seksyen U1, HICOM, Glenmarie Industrial Park, 40150 Shah Alam, Selangor Darul Ehsan, Malaysia Tel: +60-3-7804-7777 Fax: +60-3-7804-7117 Sanden Vikas(India)Ltd.* Plot No.65,Sector 27A, Faridabad 121003,Haryana State,India Tel: +91-129-419-6000 Fax: +91-129-419-6196 Pranav Vikas(India)Pvt. Ltd.* Plot No.45-46,Industrial Area, N.I.T. Faridabad 121001,Haryana State,India Tel: +91-129-5023-101〜104 Fax: +91-129-5023-105 P.T. Sanden Indonesia Kawasan Industri Suryacipta Swadaya Block A, No.5, Desa Kuta Mekar Karawang, Indonesia Tel: +62-267-440166 Fax: +62-267-440670 Sanpak Engineering Industries (Pvt.) Ltd.* 4-K.M. Raiwind Manga Road, District Kasur, Pakistan Tel: +92-42-35-392278 Fax: +92-42-35-392280 Iranian Sanden Industries* Apt #1,8th Floor, Farzan Gharbi St., Vali-Asr Ave., Tehran, Iran Tel: +98-21-8870140-4 Fax: +98-21-8870145 SANDEN AL SALAM LLC.* 1602 Al Attar Business Tower, Sheikh Zayed Road, Dubai, UAE Tel: +97-143-325000 AUSTRALIA Sanden International(Australia) Pty. Ltd. Unit 6 Bankstown Business Park, 17 Willfox Street, Condell Park, N.S.W. 2200, Australia Tel: +61-2-9791-0999 Fax: +61-2-9791-9029 * Affiliated company SANDEN CSR REPORT 2009 39
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