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SANYO DENKI CO., LTD.http://www.sanyodenki.co.jp
統 合 報 告 書2017
SANYO DENKI CO., LTD.http://www.sanyodenki.co.jp
Integrated r e p o r t
21
The SANYO DENKI Group launched its 8th Mid-term Management Plan from April 2016. We are implement-ing specific measures aimed at the following four man-agement targets:
(1) Continue to develop world-leading products in terms of quality, performance, and reliability.
(2) Establish a borderless sales system in which all group companies operate under the same manage-ment policy to deliver products and services that boast uniform high quality to customers around the world.
(3) Manage all information in real time to grasp all points of the current situation concerning business activities from anywhere in the world.
(4) Build factory automation to improve production effi-ciency and quality as well as contribute effectively to inventory reduction and production management.
In new product development, during the fiscal year under review, we succeeded in developing a number of new products as planned. They are competitive with the best in the industry in terms of performance, energy saving and reliability. We have also been working to ensure that the group companies around the world perform the same func-tions as the parent company in Japan. Specifically, we have established technical centers at each base that are designed to provide technical assistance, training sessions after-sales services, and customized products to all our customers worldwide.
We look forward to your continued support.
August 2017
Shigeo Yamamoto
CEO/President & COO
Message from the President Contents
Editorial Policy
The scope of this report covers the SANYO DENKI Group, consisting of 17 consolidated subsidiaries (as of March 31, 2017). SANYO DENK Co., Ltd. con-tributes to the creation of a sustainable society by offering solutions to social issues through our business and by engaging in responsible environmental, social and governance (ESG) initiatives. We voluntarily disclose the details of our business and ESG activities to our stakeholders.
Caution Concerning Forward-Looking Statements
Statements in this report with respect to SANYO DENKI Group’s plans and strategies as well as other statements that are not historical facts, are for-ward-looking statements involving risks and uncertainties. Important factors that could cause actual results to differ materially from such statements include, but are not limited to these.
Founded August 1927
Incorporated December 1936
Capital ¥9.9 billion (As of March 31, 2017)
Operating Revenues ¥74.7 billion (Fiscal 2016)
Representative Shigeo Yamamoto, CEO/President & COO
Number of Employees
SANYO DENKI Group: 3,175 (As of March 31, 2017)
Headquarters3-33-1 Minami-Otsuka, Toshima-ku, Tokyo, 170-8451, Japan TEL: +81 3 5927 1020 FAX: +81 3 5952 1600
Stock Listing The First Section of the Tokyo Stock Exchange
Website http://www.sanyodenki.co.jp
01 Message from the President
03 Corporate Philosophy
04 History of SANYO DENKI
05 Executives
08 Business Overview
09 Global Network
About SANYO DENKI
13 Ten-Year Financial Summary
15 Financial Highlights
17 Topics for Fiscal 2016
19 Operating Results by Reportable Segment
21 Operating Results by Business Segment
23 Research and Development
Achievements So Far
Our Vision 11 Overview of the Plan/ Shigejiro Miyata
The 8th Mid-term Management Plan
25 Corporate Governance
27 Environmental Management
31 Social Initiatives
At the Heart of SANYO DENKI
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Leveraging the wealth of knowledge and experience of developing new technologies from
our foundation, SANYO DENKI provides products and technologies to six business areas.
Business sector that manufactures medical and nursing equipment for contributing to human health.
Medical
Business sector that manufactures industrial automation equipment such as machine tools and robots.
Industry
Business sector that manufactures equipment for promoting the pro-tection of the global environment.
Environmental protection
Business sector that manufactures ICT equipment such as computers, communications equipment, and their peripheral devices.
Information and communications
Business sector that manufactures equipment for improving lifestyle.
Home automationBusiness sector that manufactures equipment for electric power gen-eration and conversion, energy sav-ing, and new energy utilization.
Energy utilization
We at SANYO DENKI Group Companies, aim to help all people achieve happiness,
and work with people to make their dreams come true.
Apr. 1979
Mar. 1980
Nov. 1984
Dec. 1988
Apr. 1990
Apr. 1995
Ju l . 1997
Mar. 1999
Feb. 2000
Apr. 2003
Jun. 2005
Jun. 2005
Aug. 2005
Oct. 2005
Nov. 2005
Dec. 2005
Jan. 2008
Jan. 2009
Ju l . 2009
Apr. 2011
Ju l . 2011
Mar. 2013
Aug. 2013
Nov. 2014
Feb. 2015
Aug. 1927
Jun. 1932
Dec. 1936
Apr. 1942
Feb. 1944
Dec. 1945
Sep. 1962
Sanyo Shokai Co., Ltd. founded by Hideo Yamamoto to im-port and sell electrical components
A factory for the production of small AC and DC generators and communications equipment power units established in the Nishi-Sugamo (current Higashi-Ikebukuro) area of Tokyo
Reorganized into a joint stock company (Sanyo Shokai Co., Ltd.)
Renamed SANYO DENKI CO., LTD
Ueda factories (Ueda Kita Works, former Midorigaoka Works) established
Head office and Tokyo Works relocated to the Sugamo (cur-rent North Otsuka) area of Tokyo
Listed on the Second Section of the Tokyo Stock Exchange
Shioda Works established
Tsuiji Works established
Aoki Works established (current Logistics Center)
SANYO DENKI EUROPE S.A. (France) established
Fujiyama Works established
SANYO DENKI AMERICA, INC. (U.S.A.) established
Technology Center established
SANYO DENKI Techno Service CO., LTD., established
SANYO DENKI PHILIPPINES, INC. (Philippines) established
SANYO DENKI SHANGHAI CO., LTD. (China) established
SANYO DENKI (H.K.) CO., LIMITED (China) established
SANYO DENKI Techno Service (Shenzhen) CO., LTD. (China) established
SANYO DENKI SINGAPORE PTE. LTD. (Singapore) established
SANYO DENKI GERMANY GmbH (Germany) established
SANYO DENKI KOREA CO., LTD. (Korea) established
SANYO DENKI TAIWAN CO., LTD. (Taiwan) established
SANYO DENKI (Shenzhen) CO., LTD. (China) established
Kangawa Works established
SANYO KOGYO CO., LTD. became a wholly owned subsidiary
SANYO DENKI (Zhongshan) CO., LTD. (China) established
SANYO DENKI (THAILAND) CO., LTD. (Thailand) established
Listed on the First Section of the Tokyo Stock Exchange
Head office relocated to its current location
SANYO DENKI ENGINEERING (Shanghai) CO., LTD. (China) established
SANYO DENKI INDIA PRIVATE LIMITED (India) established
History of SANYO DENKI1920
1970
2000
2010
1932 Factory for prodcution established in theNishi-Sugamo (currently Higashi-Ikebukuro)
1945 Head office and Tokyo Works relocated
1944 Ueda Kita Works stablished
2000 SANYO DENKI PHILIPPINES, INC. established
2009 Kangawa Works established
2013 Head office to its current location relocated
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Executives
Takeshi Yamamoto
Audit & Supervisory Board Member (Part-time)
Nobumasa Kodama
Director Senior Executive Operating Officer for ManufacturingTechnical Development Officer
Kaoru Tamura
Director Senior Executive Operating Officer for PurchasingGeneral Manager of Purchasing Headquarters
Shigeo Yamamoto
Chief Executive OfficerPresident and Chief Operating Officer
Yoshimasa Matsumoto
DirectorExecutive Operating Officer for SalesGeneral Manager of Sales Headquarters
Shigejiro Miyata
Director Executive Operating Officerfor Quality Control and Mid-term Strategy
Hisayuki Ogura
Audit & Supervisory Board Member (Part-time)
Fumio Amano
Audit & Supervisory Board Member (Full-time)
Sakon Hatanaka
Audit & Supervisory Board Member (Full-time)
Yuichiro Miyake
Outside Director
Toru Suzuki
Outside Director
Hiroshi Suwa
Outside Director
Back row, from left
Front row, from left
(As of June 2017)
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Yasuyuki Koizumi
Operating Officer forInternational Business Development
Chihiro Nakayama
Operating Officer General Manager of Cooling Systems Division
Keiichi Kitamura
Operating Officer forAdministration Chief of Ueda Facilities
Norio Tazawa
Operating Officer General Manager of Power Systems Division
Satoru Onodera
Operating Officer forProduction and Production Engineering
Toshihiko Baba
Executive Operating Officer General Manager of Servo Systems Division
Back row, from left
Front row, from left
Cooling Systems Division
Power Systems Division
Servo Systems Division
“San Ace” is SANYO DENKI’s brand name for cooling
systems products, such as cooling fans and cooling
fan units.
“SANUPS” is SANYO DENKI’s brand name for power supply
equipment, including power conditioners for photovoltaic gen-
eration systems (PV Inverters), uninterruptible power
supplies (UPSs), inverters and engine generators.
“SANMOTION” is SANYO DENKI’s brand name for servo sys-
tems, such as servo motors, servo amplifiers, stepping motors,
stepping drivers, motion controllers and encoders.
Business OverviewExecutives (As of June 2017)
Electrical Equipment Sales Division
Electrical Equipment Sales Division offers an abundant variety
of electrical and electronics products from the world’s leading
manufacturers.
Electrical Works Contracting Division
Electrical Works Contracting Division offers planning, design, con-
struction and maintenance work for industrial control systems.
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Sales
Production Sites
Global Network
East AsiaSANYO DENKI (Zhongshan) CO., LTD.
SANYO DENKI SHANGHAI CO., LTD.
Beijing Branch
SANYO DENKI (H.K.) CO., LIMITED
SANYO DENKI TAIWAN CO., LTD.
SANYO DENKI KOREA CO., LTD.
Busan Branch
SANYO DENKI (Shenzhen) CO., LTD.
Tianjin Branch
Chengdu Branch
SANYO DENKI ENGINEERING (Shanghai) CO., LTD.
SANYO DENKI ENGINEERING (Shenzhen) CO., LTD.
Southeast AsiaSANYO DENKI PHILIPPINES, INC.
SANYO DENKI SINGAPORE PTE. LTD.
Indonesia Representative Office
SANYO DENKI (THAILAND) CO., LTD.
SANYO DENKI INDIA PRIVATE LIMITED
Gurgaon Office
JapanSANYO DENKI CO., LTD.
Kangawa Works
Fujiyama Works
Shioda Works
Tsuiji Works
Technology Center
Sapporo
Sendai
Utsunomiya
Ueda
Kofu
Kanazawa
Hamamatsu
Kariya
Nagoya
Kyoto
Osaka
Hiroshima
Fukuoka
SANYO DENKI Techno Service CO., LTD.
SANYO KOGYO CO., LTD.
EuropeSANYO DENKI EUROPE S.A.
Poland Branch
SANYO DENKI GERMANY GmbH
North AmericaSANYO DENKI AMERICA, INC.
Silicon Valley Office
Chicago Office
Detroit Office
Production Sites
Kangawa Works
Fujiyama Works
Shioda Works
Tsuiji Works
SANYO DENKI PHILIPPINES, INC.
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Borderless Real time Automation
24
Shigejiro Miyata
The SANYO DENKI Group launched its 8th Mid-term Management Plan in April 2016. In developing the plan, we focused on three goals: building a top global brand, expanding operations worldwide, and adapting to change. After looking back on everything we did under past Mid-term Management Plans, we decided to develop strategies for the 8th Mid-term Management Plan with these goals in mind so that they would become our new strengths. The special committee organized for the 8th Mid-term Management Plan spent about a year developing a specific concrete plan. Consisting of members rep-resenting business, sales, procurement, and adminis-trative divisions, the committee thoroughly discussed the goals and initiative direction of the plan exchanging
opinions not only within the Company but also with all the group companies in the world. This enabled the committee to cover all the Group activities and indicate specific initiatives each group company should imple-ment, making the latest plan unique. As we shifted to the implementation phase of the plan in April 2016, we broke down the three goals (build-ing a top global brand, expanding operations worldwide, and adapting to change) into more specific key policies: new products, borderless operation, real-time manage-ment, and factory automation. Each division developed specific initiatives with these four key policies in mind, and is implementing them on a daily basis.
have already started building that mechanism and are cur-rently working on developing the infrastructure needed to put it into full operation. The third key policy is real-time management. The objective here is to obtain information about what is hap-pening within the Group in real time and utilize it. Centrally managing and having access to Group information in real time will enable us to make decisions more quickly and respond to changes in the external environment in a timely manner. It will also enable us to provide customers with information about new products, production status, deliv-ery dates, and more in real time so we can deliver higher quality services. Just as we have done for the second key policy, borderless operation, we have already started creating a real-time mechanism, part of which is now in operation. The last key policy is factory automation. Under this policy, we have set quantitative targets to halve produc-tion person-hours, processing costs, and work-in-process inventory while shortening lead time by 75% and reduc-ing setup time to zero. Eliminating setup time will make a particularly big impact. Setup time refers to the time required to prepare the equipment used to make products and distribute all the necessary materials. For example, spending one hour to change the setup when making two different kinds of products in sequence requires an hour of downtime every time two different products are made. By reducing the setup time, lead time for delivery can be shortened and customers can make happier. In the end, the overall productivity of the factory increases and the production system can be made resilient to sudden fluctu-ations in demand.
Our Vision: The 8th Mid-term Management Plan
New products Borderless operation Real-time management
Factory automation
Path to the 8th Mid-term Management Plan
This 8th Mid-term Management Plan spans a five-year period. While past Mid-term Management Plans were three-year ones, the extended plan period enabled us to really look closely at each initiative. All the initiatives were developed with concrete plans for creating inno-vative systems or products that no other company has ever offered. Realizing these concrete plans will pave the way toward great results. It has been a year since the 8th Mid-term Man-agement Plan was launched, and I can already see it paying off in a number of ways. Most notable of all is the progress we have made in factory automation. Since everyone can actually see the changes made to factory operations, the morale of factory workers has been boosted. Also, now that they have been able to see the actual results of their efforts, employees are sharing constructive opinions on how things can be improved and what needs to be introduced to opera-tions. I hope that, as these concrete results pile up, it will boost the morale of employees at site even more and set the mood for achieving the goals set under the 8th Mid-term Management Plan.
Looking Back at the First Year
The 8th Mid-term Management Plan has four key poli-cies: new products, borderless operation, real-time man-agement, and factory automation. We are working on as many as 333 initiatives under the plan, and here are some of them. The first key policy is developing innovative new products we have never had before in shorter time. New products include ones designed to facilitate robotization or automation, ones designed for safety, ones designed to minimize environmental impact, and ones that will be useful in a wide variety of fields. We are currently engaged in a world of different projects with plans on the drawing board to bring them to various industries and make them “connectable” so you can see them at work in the equip-
ment in real time. By leveraging the IoT technology, we will connect our production plants and customers’ equipment to provide services with greater added value. The second key policy is borderless operation, which is about providing uniformly high-quality products and ser-vices to all customers around the world. In order to do this, we must keep the quality of our operations high across the Group so we can respond to any customer requirement. To this end, we will create a mechanism that will help employ-ees come up with new ideas and build a stronger orga-nization by utilizing information, knowledge, and human resources beyond the boundary of group companies. We
Ongoing Initiatives
I have so far described the initiatives we are currently focusing on. A year has passed since the launch of our Mid-term Management Plan and to sum up the current status, I would say that we have neither made any unexpected progress in any one of the four key policies (new products, borderless operation, real-time management, and factory automation) nor are we lagging behind in any of them. We are making steady progress in all 333 initiatives related to these and looking forward to how things will turn out. We have four more years to complete the 8th Mid-term Management Plan. Once all the initiatives have been imple-mented and begin to work together, they will produce sig-nificant results. While the 8th Mid-term Management Plan runs through March 2021, we are looking beyond that as we steadily carry out the plan.
Future Initiatives
Director Executive Operating Officer for Quality Control and Mid-term Strategy
World-leading
11P sroduct
1413
(*)1. Since fiscal 2015, consolidated financial statements have been prepared in accordance with the International Financial Reporting Standards (IFRS).2. EBITDA = Operating profit/income + Depreciation and amortization3. Effective from the year ended March 31, 2012, the Group adopted “Accounting Standard for Presentation of Comprehensive Income.”4. Previously, in preparing the consolidated financial statements, the necessary adjustments for consolidated accounting were made using the financial statements of 14
overseas consolidated subsidiaries as of three months earlier. Effective from the fiscal year ended March 31, 2015, however, for acquiring more accurate consolidated financial statements, we have employed on our accounting method to use the financial statements of the overseas consolidated subsidiaries for the same period as that of the Company. Accordingly, the above results for the year ended March 31, 2015 include the three-month results from January 1 to March 31, 2014 of the overseas consolidated subsidiaries.
IFRS(*1) Millions of Yen
Fiscal Years 2016 2015
Operating Results:
Operating revenues .................. ¥ 74,798 ¥ 80,282
Cost of sales ............................. 57,022 61,975Selling, general, and administrative expenses ................................
12,469 13,098
Operating profit ........................ 5,414 5,432
Profit before income taxes ....... 5,332 5,268Net profit attributable to owners of the parent .......................... 4,031 3,738Comprehensive income ............ 5,259 492
EBITDA(*2) ................................ 8,685 8,566
Capital expenditures ................. 1,962 2,480
Depreciation and amortization .. 3,270 3,133
Research and development cost .. 2,215 2,495Net cash provided by operating activities .................................
6,571 4,930
Net cash used in investing activities .................................
(2,825) (2,862)
Net cash used in financing activities .................................
(2,626) (1,971)
Free cash flow .......................... 3,746 2,068
Balance Sheet Data (As of March 31):
Total assets ............................... ¥ 93,156 ¥ 88,700
Total equity ............................... 57,054 53,420
Current assets .......................... 58,143 55,376
Current liabilities ....................... 28,610 27,481
Interest-bearing debt ................ 7,192 8,069
Cash and cash equivalents ....... 13,766 12,743Total number of shares issued (shares) ..................................
64,860,935 64,860,935
Per Share Data (Yen):Net profit attributable to owners of the parent ..........................
¥ 65.85 ¥ 60.20
Cash dividends ......................... 18 18Equity attributable to owners of the parent .......................... 933.07 860.09
Ratios (%):Ratio of equity attributable to owners of the parent to total assets .........
61.2 60.2
ROE (Return on equity attributable to owners of the parent) ......... 7.3 7.0
ROA (Profit before income taxes to total assets) ...................... 5.9 5.8
Japanese GAAP Millions of Yen
Fiscal Years 2016 2015 2014(*4) 2013 2012 2011(*3) 2010 2009 2008 2007
Operating Results:
Net sales ................................... ¥ 74,798 ¥ 80,282 ¥ 91,745 ¥ 67,670 ¥ 64,050 ¥ 69,972 ¥ 70,295 ¥ 42,505 ¥ 49,089 ¥ 67,386
Cost of sales ............................. 56,913 61,808 71,163 52,344 50,671 56,059 55,276 36,918 39,698 54,751Selling, general, and administrative expenses ...............................
12,494 13,131 13,103 10,504 9,430 9,249 9,333 7,803 8,068 8,286
Operating income (loss) ............ 5,390 5,342 7,478 4,821 3,948 4,662 5,685 (2,217) 1,322 4,348
Ordinary income (loss) .............. 5,504 5,387 8,409 5,369 4,503 4,917 5,440 (1,647) 859 3,710
Income (loss) before income taxes ... 5,448 5,385 8,398 5,310 4,412 5,665 4,706 (1,830) 301 3,763Net income (loss) attributable to shareholders of SANYO DENKI ... 4,066 3,685 5,720 3,727 2,957 4,367 4,518 (4,142) (193) 2,342Comprehensive income ............ 5,802 1,606 7,698 6,212 3,972 4,074 3,777 ̶ ̶ ̶EBITDA(*2) ................................ 7,572 7,320 9,681 6,930 6,070 7,294 8,343 536 4,117 6,872
Capital expenditures ................. 1,962 2,480 3,386 2,337 1,900 1,128 1,963 2,088 7,465 3,694
Depreciation and amortization .. 2,182 1,978 2,202 2,109 2,121 2,631 2,658 2,753 2,795 2,524
Research and development cost .. 2,215 2,495 2,461 2,405 2,538 2,162 2,162 1,957 2,105 1,770Net cash provided by operating activities .................................
5,588 4,863 5,801 5,714 5,214 7,667 3,869 677 2,936 5,303
Net cash used in investing activities .................................
(1,924) (2,057) (3,587) (2,065) (2,178) (1,111) (1,259) (84) (7,466) (4,859)
Net cash (used in) provided by financing activities .................
(2,544) (2,708) (3,352) (1,114) (3,298) (5,932) 947 128 3,852 1,351
Free cash flow .......................... 3,664 2,805 2,214 3,648 3,035 6,556 2,609 592 (4,529) 443
Balance Sheet Data (As of March 31):
Total assets ............................... ¥ 89,487 ¥ 84,945 ¥ 90,176 ¥ 78,232 ¥ 68,979 ¥ 69,863 ¥ 74,395 ¥ 66,614 ¥ 59,675 ¥ 63,838
Total net assets ........................ 56,275 52,099 51,618 45,819 41,495 38,910 35,609 32,444 37,214 39,515
Current assets .......................... 58,401 55,339 60,488 51,959 44,209 45,443 48,017 38,525 31,787 39,022
Current liabilities ....................... 27,028 25,839 31,509 26,006 22,386 24,821 31,959 26,298 16,204 22,749
Interest-bearing debt ................ 6,537 7,331 8,692 10,472 9,982 11,869 16,785 15,145 12,545 8,700
Cash and cash equivalents ....... 13,766 12,743 13,151 13,719 9,733 9,378 8,822 5,928 5,227 6,816Total number of shares issued (shares) ..................................
64,860,935 64,860,935 64,860,935 64,860,935 64,860,935 64,860,935 64,860,935 64,860,935 64,860,935 64,860,935
Per Share Data (Yen):Net income (loss) attributable to shareholders of SANYO DENKI ..
¥ 66.41 ¥ 59.34 ¥ 92.09 ¥ 60.01 ¥ 47.61 ¥ 70.30 ¥ 72.70 ¥ (66.71) ¥ (3.13) ¥ 38.88
Cash dividends ......................... 18 18 17 15 15 13 12 8 9 10
Net assets ................................ 920.34 838.80 830.94 737.51 667.82 617.98 564.75 512.86 592.70 627.45
Ratios (%):
Equity ratio ............................... 62.9 61.3 57.2 58.6 60.2 55.0 47.2 47.9 61.4 60.8
ROE (Return on equity) .................. 7.5 7.1 11.7 8.5 7.4 11.9 13.5 (12.1) (0.5) 6.2
ROA (Return on assets) ............ 4.7 4.2 6.8 5.1 4.3 6.1 6.4 (6.6) (0.3) 3.6
Ten-Year Financial Summary
Consolidated Consolidated
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Financial Highlights
Operating Revenues (Millions of Yen)
Net Profit Attributable to Owners of the Parent (Millions of Yen) / Net Profit to Operating Revenues (%)
¥74,798 million
¥5,414 million/7.2%
¥18¥4,031million/5.4%
Cash Dividends per Share (Yen)
Net Profit Attributable to Owners of the Parent per Share (Yen)
¥65.85Operating Profit (Millions of Yen)/Operating Profit to Operating Revenues (%)
¥57,054 million/7.3%
Total Equity (Millions of Yen) / ROE (%)
2007 2008 2009 2010 2011 2012 2013 2014 20152015 20162016
0
67,386
49,08942,505
70,295 69,97264,050 67,670
91,745
80,282 80,28274,79874,798
Japanese GAAP IFRS
(FY)
0
4,348
■ Operating Profit Operating Profit to Operating Revenues
1,322
(2,217)
5,6854,662
3,9484,821
7,478
5,342 5,432
7.1
2007 2008 2009 2010 2011 2012 2013 2014 20152015 20162016Japanese GAAP IFRS
(FY)
6.5
2.7(5.2)
8.16.7 6.2
8.26.7
5,414
7.26.87.2
5,390
0
0
2,342
(193)(4,142)
4,518 4,367
2,9573,727
5,720
3,685 3,738 4,0314,066
5.5
2007 2008 2009 2010 2011 2012 2013 2014 20152015 20162016Japanese GAAP IFRS
(FY)
3.5
(0.4)
(9.7)
6.4 6.24.6
6.24.6 4.75.4 5.4
■ Net Profit Attributable to Owners of the Parent Net Profit to Operating Revenues
0
39,515 37,21432,444 35,609 38,910 41,495
45,81951,618 52,099
56,275 53,42057,054
8.5
2007 2008 2009 2010 2011 2012 2013 2014 20152015 20162016Japanese GAAP IFRS
(FY)
6.2
(0.5) (12.1)
13.5 11.9
7.4
11.7
7.1 7.5 7.0 7.3
■ Total Equity ROE
0
38.88
(3.13)
(66.71)
72.70 70.30
47.6160.01
92.09
59.34 60.2066.41 65.85
2007 2008 2009 2010 2011 2012 2013 2014 20152015 20162016Japanese GAAP IFRS
(FY)
0
98
1213
15 1517
18 18 18 18
10
2007 2008 2009 2010 2011 2012 2013 2014 20152015 20162016Japanese GAAP IFRS
(FY)
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Topics for Fiscal 2016
Full-scale operation of technical centers in eight countries worldwideTechnical centers were established in eight locations in Japan (Osaka), the United States, China (Shanghai and Shenzhen), Taiwan, Singapore, Thailand, Germany and France.
Held a global sales meetingThe meeting was conducted to share information among sales members of group companies worldwide.
Conducted a global technical meetingThe meeting was held for engineers at group companies around the world to share information on technical and regional issues and acquire the necessary knowl-edge and skills.
Double win at the 12th China (Shandong) Inter-national Equipment Man-ufacturing ExpoWe won the Best Product Gold Award for an exhibit that best contributed to automation, and also received the Best Booth Design Award in booth design.
Acquired treasury stockWe acquired 957,000 shares of trea-
sury stock as part of our flexible cap-ital policy that adjusts to changes in the business environment.
Third consecutive award at AUTOMATION 2016 (India)As the company with the No. 1 ability to attract customers, we received this award for the third consecutive year.
Startedproduction innovation initiatives
120 × 120 × 25 mm
Low Power Consumption Fan
San Ace 120 9GA type
Motion Controller
SANMOTION C
Linear Servo Motors
SANMOTION
Center magnet type
Dual magnet type
100 mm sq. flange size
25A50A
100A
130 mm sq. flange size
ø175 mm × 69 mm
Centrifugal Fan
San Ace C175 9T type
92 × 92 × 76 mm
Counter Rotating Fan
San Ace 92 9CRA type
ø92 mm × 38 mm
Reversible Flow Fan
San Ace 92RF 9RF typeAC Servo Motors
SANMOTION R
AC Servo Amplifiers
SANMOTION R 3E Model
AC400V type
Jun.
Bracket-mounted Centrifugal Fans
San Ace C270 9B1T type
270 × 270 × 99 mm
270 × 270 × 119 mm
Formulated the 8th Mid-term
Management Plan
Closed Loop Stepping Systems
4-Axis Integrated Driver
SANMOTION Model No.PB
Voluntarily adopted IFRS for securities report from fiscal 2016
May Jul. Aug.Apr. Sep. Oct. Nov. Dec. Jan. Feb. Mar.
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Overview of Operating Results for Fiscal 2016 (Millions of Yen)
Reportable segement Operating revenues Segment profit Segment profit margin
Japan ¥75,832 ¥3,796 5.0%
North America 9,674 623 6.4
Europe 4,395 301 6.8
East Asia 12,124 30 0.2
Southeast Asia 17,280 611 3.5
(Intersegment transactions) (44,509) 51 ―Total ¥74,798 ¥5,414 7.2%
Operating Results by Reportable Segment
Japan
63.5%¥75,832 million
Europe
3.7% ¥4,395 million
North America
8.1%¥9,674 million
East Asia
10.2%¥12,124 million
Southeast Asia
14.5%¥17,280 million
Consolidated Operating Revenues
Compositionby Reportable Segment
¥74,798 million*
Operating in Japan are the Company and its consolidated subsidiaries SANYO KOGYO CO., LTD. and SANYO DENKI
Techno Service CO., LTD. Operating revenues decreased 5.4% from the previous year, to ¥75,832 million, and seg-
ment profit fell 1.3%, to ¥3,796 million.
Japan
In Europe, the Company has consolidated subsidiaries SANYO DENKI EUROPE S.A. and SANYO DENKI GERMA-
NY GmbH. Operating revenues amounted to ¥4,395 million, down 4.6%, and segment profit declined 5.5%, to
¥301 million.
Europe
The Company’s consolidated subsidiaries operating in East Asia consist of SANYO DENKI SHANGHAI CO., LTD.,
SANYO DENKI (H.K.) CO., LIMITED, SANYO DENKI TAIWAN CO., LTD., SANYO DENKI KOREA CO., LTD., SANYO
DENKI ENGINEERING (Shanghai) CO., LTD., SANYO DENKI (Shenzhen) CO., LTD., SANYO DENKI (Zhongshan) CO.,
LTD. and SANYO DENKI ENGINEERING (Shenzhen) CO., LTD. Operating revenues amounted to ¥12,124 million, up
3.0%, and segment profit declined 86.4%, to ¥30 million a year earlier.
East Asia
The Company’s consolidated subsidiaries in Southeast Asia comprise SANYO DENKI PHILIPPINES, INC., SANYO
DENKI SINGAPORE PTE. LTD., SANYO DENKI INDIA PRIVATE LIMITED and SANYO DENKI (THAILAND) CO., LTD.
Operating revenues amounted to ¥17,280 million, up 5.0%, ands segment profit declined 15.2%, to ¥611 million.
Southeast Asia
The Company has a consolidated subsidiary in North America: SANYO DENKI AMERICA, INC. Operating revenues
amounted to ¥9,674 million, up 17.9%, and segment profit jumped 155.5%, to ¥623 million.
North America
* Excluding intersegment transactions
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Operating Results by Business Segment
Cooling Systems Division
29.5%¥22,081 million
Power Systems Division
12.4%¥9,287 million
Servo Systems Division
48.5%¥36,248 million
Electrical Equipment Sales Division
6.6%¥4,930 million
Electrical Works Contracting Division
3.0%¥2,250 million
Overview of Operating Results for Fiscal 2016 (Millions of Yen)
Busisness segment Operating revenues Orders received Order backlog
Cooling Systems Division ¥22,081 ¥22,465 ¥ 3,581
Power Systems Division 9,287 9,208 2,181
Servo Systems Division 36,248 39,013 7,661
Electrical Equipment Sales Division 4,930 4,633 496
Electrical Works Contracting Division 2,250 2,208 716
Total ¥74,798 ¥77,530 ¥14,637
Consolidated Operating Revenues
Compositionby Business Segment
¥74,798 million
In the Cooling Systems Division, the Company saw increased demand for servers for data centers. Demand from
the telecom munications and network industry also remained solid. In addition, demand from the factory automation
industry for capital expen ditures for smartphone-related products and semiconductor equipment was also steady.
Conversely, we experienced a decline in demand for power conditioners for photovol taic generation systems. As a
result, operat ing revenue rose 4.1% year on year, to ¥22,081 million. The amount of orders received increased 4.6%,
to ¥22,465 million, and the order backlog climbed 12.0%, to ¥3,581 million.
Cooling Systems Division
In the Power Systems Division, the Company saw stagnant demand for power conditioners for photovoltaic gener-
ation systems due to the continuous market slump caused by feed-in tariffs for photovoltaic gen eration. Demand
was healthy for uninterrupt ible power systems (UPSs) from manufactur ers of factory equipment and semiconductor
equipment. Accordingly, operating revenue dropped 17.1% year on year, to ¥9,287 million. The amount of orders
received decreased 17.6%, to ¥9,208 million, and the order backlog declined 3.5%, to ¥2,181 million.
Power Systems Division
In the Servo Systems Division, the Company saw strong demand from manufac turers of semiconductor equipment
and robots due to continuous brisk capital expen ditures for semiconductor-related equipment. In addition, demand for
machine tools, general industrial machines, and chip mounters increased reflecting a recovery in capital expenditures for
smartphone manufacturers in China. Consequently, operating revenue rose 1.2% year on year, to ¥36,248 million. The
amount of orders received rose 13.2%, to ¥39,013 million, and the order backlog increased 56.5%, to ¥7,661 million.
Servo Systems Division
In the Electrical Equipment Sales Division, sales of industrial electrical equipment, control equipment and material for electronic equipment remained brisk in the markets of general industrial equipment, medical-related equipment, and semiconductor-related equipment. On the other hand, we saw a significant drop in demand for photovoltaic genera-tion-related products for overseas markets, despite a surge in sales a year earlier. In the steel-related market, demand for the replacement of outdated equipment for production facilities and spare parts for repair remained strong despite lower capital expenditures for new facilities. Consequently, operating revenue fell 49.1% year on year, to ¥4,930 million. The amount of orders received declined 52.8%, to ¥4,633 million, and the order backlog fell 37.4%, to ¥496 million.
Electrical Equipment Sales Division
In the Electrical Works Contracting Division, the volume of renewal construction and repair works for steel mill plant
equip ment progressed in line with the initial plan. As for works related to equipment of photo voltaic generation
systems, demand for large-scale construction in mega-solar plants remained solid but showed signs of shrinking in
others on the whole. As a result, operating revenue decreased 5.1% year on year, to ¥2,250 million. The amount of
orders received fell 12.0%, to ¥2,208 million, and the order backlog dropped 5.5%, to ¥716 million.
Electrical Works Contracting Division
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Laboratory
The SANYO DENKI Group implements R&D activities under the leadership of SANYO DENKI CO., LTD. and increases collaboration between the sales divisions and the design and development groups of our research facility, based on the underlying concept of developing products with which customers can create new value. Our three production divisions actively carry out R&D activities, aiming to contribute to the development of technologies for pro-tecting the global environment, protecting the health and safety of individuals, utilizing new energy sources, and conserving energy. We have implemented a unique design and development work group system in our R&D structure at Technology Center. This enables us to easily form new teams for each product issue, which helps us antic-ipate market needs and better respond to customer needs. During the fiscal year ended in March 31, 2017, R&D costs including development expenses recorded in tangible assets, on a consolidated basis, amounted to ¥2,215 million. All the costs were recorded in the Japan segment.
Research and Development Costs
¥2,215 million
11.2%
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2015 2016
0
1,770
2,1051,957
2,162 2,162
2,5382,405 2,461 2,495
2,2152,495
2,215
Japanese GAAP IFRS
(FY)
We developed the following products for San Ace cooling systems. In communications equipment and power supply units, the main user industries for cooling fans, we saw an expansion in the Internet and cloud computing, which increasingly requires equipment with higher density, larger capacity, and high speed. This development requires higher performance and reliability for cooling fans. To meet these requirements, SANYO DENKI expanded its lineups of the new-size high airflow counter rotating fan San Ace 92 with high cooling efficiency, the low power consumption fan San Ace 120 and the high airflow cen-trifugal fan San Ace C175, which delivers high cooling performance. We also developed new products: the bracket-mounted centrifugal San Ace C270, which is easy to install and maximizes the characteristics of the fan, and the reversible flow fan San Ace 92RF, which can be fit in Ø100 mm home ventilation ducts in response to new demand from the residential ventilation market. To stay ahead of market trends amid technological innovation, SANYO DENKI works actively to develop new cooling fans with higher performance and energy saving. We implemented an initiative to commercialize new prod-ucts with world-class performance and reliability. During the fiscal year under review, R&D costs in this division amounted to ¥275 million.
In this division, we developed the following product for SANUPS power systems. In the field of uninterruptible power supplies (UPSs), SANYO DENKI worked to develop products with lithium-ion batteries that have wider operating temperature range than the conventional batteries, which can achieve space-saving and maintenance-free operation. In the field of power conditioners for photovoltaic generation systems (PV inverters), we developed a new 3-phase PV inverter SANUPS P73J that meets the industry standard. It is possible to shorten the installation time for multiple interconnection systems. We also expanded the lineup of a remote monitoring tool for PV systems SANUPS PV Monitor Type C with an output control function. It enables remote control of the amount of power generation based on information from power companies. R&D costs in this division amounted to ¥706 million in the fiscal year under review.
We developed the following products for SANMOTION servo systems. SANYO DENKI expanded the lineup of the SANMOTION R series and developed AC servo motors with 100 mm/130 mm square flange size, featuring high-speed rotation and high acceleration/deceleration. Seven models with rated output of 1 kW to 5 kW have been prepared to shorten the equipment tact time and improve productivity. We also expanded the lineup of the SANMOTION R 3E Model series and developed a 400 VAC input model AC servo amplifier with high-speed positioning control function and safe torque cutoff function. Six models with capacity of 25A to 100A are available. In the field of stepping systems, we developed SANMOTION Model No. PB with a DC input, 4-axis integrated driver, which is equipped with a high-speed fieldbus EtherCAT interface and deviation-less closed loop control. This model eliminates delays in position command, so that device tact time can be reduced. In the fiscal year under review, R&D costs in this division totaled ¥1,233 million.
Cooling Systems Division
Power Systems Division
Servo Systems Division
Research and Development
Technology Center
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General Meeting of Shareholders
Evaluation
Report
Audit
Report
Accountingaudit,
Internalcontrol audit
Internal Control EvaluationCommittee
Cooperation
Cooperation
Cooperation
Internal Audit
Corporate Philosophy/Code of Conduct
Election, DismissalElection, Dismissal
Election, Dismissal
Report Election, Dismissal Report
Report
Report
Report
Supervision,Execution of Operation
Certifi
ed P
ub
lic Acco
un
tant
Each Sales, Operation,Purchasing and Admisterative
Division
Crisis Management CommitteeBusiness Conduct Committee
Each Committe and Project
Operating Board Meeting
RepresentativeDirectors Directors
Board of Directors Audit & Supervisory Board
Audit & Supervisory Board Members
Auditing DepartmentOperating
Officers President
Each Group Company
Report
Instruction
Election,Dismissal
Election,Dismissal
Instruction,Supervision
Audit,Investigation
Corporate Governance Structure
Basic Corporate Governance Philosophies
The Company has established an internal control
system, through which we strive to achieve our cor-
porate principles through fair and reasonable man-
agement, and have every employee fully understand
those principles in our daily business operations. We
will revise the system when necessary.
Corporate Governance System
Basic information of corporate organization
(a) The Board of Directors always ensures that the
activities of directors and employees comply with
laws, regulations and the Company’s Articles of
Incorporation, and it receives reports from the heads
of divisions at regular Board of Directors meetings,
or when needed. It also makes decisions, gives
instructions and offers guidance, when necessary.
(b) The Board of Directors appoints the necessary
number of operating officers to realize systematic,
appropriate and speedy execution of operations,
gives individuals the responsibility and authority
they need to carry out their duties, oversees opera-
tions, and receives reports from our operating offi-
cers at Board of Directors meetings. It also makes
decisions, gives instructions and offers guidance,
when necessary.
(c) Audit & Supervisory Board Members audit the oper-
ations of the directors, and check whether operat-
ing officers, and the divisions under their control,
are executing operations appropriately pursuant to
laws, regulations, the Articles of Incorporation and
in-house rules.
(d) The Auditing Department, under direct control of
the president, performs audits to check whether
operations in all divisions of the Company and
affiliated group companies are being conducted
appropriately according to laws, regulations, the
Articles of Incorporation and in-house rules. It also
offers guidance when it believes a practice needs to
be improved.
(e) The Business Conduct Committee, appointed by
the Boards of Directors, provides employees of the
Company and affiliated group companies, with thor-
ough training on compliance with laws and regula-
tions and the Corporate Code of Conduct.
(f) The Internal Control Evaluation Committee evalu-
ates the internal control of the Company and group
companies and reports it to the Board of Directors,
and the Board of Directors instructs or offers guid-
ance based on the evaluation report.
Strengthening our risk management system
(a) The Company’s Crisis Management Committee,
appointed by the Board of Directors, fully recognizes
the risks that affect operations of the Company
and its affiliated group companies, and strives to
improve our crisis management system. During
normal operations, the committee formulates mea-
sures to prevent risks from occurring.
(b) The Crisis Management Committee has estab-
lished a system to prepare for any unforeseen sit-
uation that might seriously affect operations of the
Company and its affiliated group companies.
Internal Audits and Audits by Audit & Supervi-sory Board Members
(a) As a tool of internal auditing, our Auditing Depart-
ment was established with five Audit & Supervi-
sory Board Members to prevent illegal corporate
activities of the Company and affiliated group com-
panies before happen and improve the quality of
management.
(b) Audit & Supervisory Board Members attend all
Board of Directors meetings, and the Operating
Board meeting held twice a month, to fully oversee
management’s corporate conduct.
(c) The Auditing Department, Audit & Supervisory Board
Members and certificated public accountants are
enhancing their mutual cooperation by exchanging
information at various opportunities, including the
regular meeting to discuss the annual schedule,
earnings reports, and other data.
Limit on the Number of Directors
It has been established within the Articles of Incorpo-
ration, that there shall be no more than 10 Directors.
Resolutions to Appoint Directors
It has been established within the Articles of Incorpo-
ration that resolutions concerning the appointment of
Directors shall be adopted when shareholders having
one-third of the total voting rights of shareholders,
and who are entitled to exercise their voting rights are
present, and when approved by a majority of the votes
of the shareholders present.
General Meeting of Shareholders Resolution Items That May Be Resolved by the Board of Directors
Acquisition of treasury stock
With regard to the acquisition of treasury stock, it has
been established within the Articles of Incorporation
that in accordance with Article 165, Paragraph 2 of the
Companies Act, treasury stock may be acquired in accor-
dance with resolutions of the Board of Directors. The
aim of this is to enable the execution of flexible capital
policies in response to the business environment.
Interim dividends
With regard to the distribution of retained earnings, it
has been established within the Articles of Incorpora-
tion that in accordance with Article 454, Paragraph 5
of the Companies Act, interim dividends may be paid
upon the resolution of the Board of Directors on Sep-
tember 30 of each year, or the nearest business day,
except as otherwise stipulated by law. The aim of this
is to enable the flexible distribution of profits to share-
holders by authorizing the Board of Directors to decide
on the distribution of retained earnings.
Corporate GovernanceA
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Natural environment
Life cycle processes reviewed in LCA
Recycling(material, chemical, thermal) Reuse
Processing of parts
Processing of products
User
Collected and transportedDisassembled
Disassembled
Disassembled
Crushing
Manufacture of materials
CO2 energy CO2 energy
CO2 energyCO2 energy
(FY)2013 2014 2015 201620122011
250
200
150
100
50
0
236 types
Number of products certified as eco-products(Total number of products in all divisions)
151169
190210 225 236
(Types)
CrushedSelected
Final disposal
Transportation and distribution
User
Environmental Management
Eco-productsEfforts for designing Eco-products
As for product design, we are carrying out R&D to in-
corporate the latest energy-saving technologies into
our new products. At the same time, we carry out
product assessments to evaluate the environmental
impact of products at each stage, such as component
and material procurement, manufacture, distribution,
use, recycling, and disposal. Newly developed prod-
ucts are compared with commercially available and
existing products and are certified as Eco-products
(Eco-design products) if they satisfy the specified eval-
uation standards. In fiscal 2016, 11 types of products
were certified as Eco-products. Going forward, we will
continue to reduce CO2 emissions during use and pro-
mote product development with consideration of LCA.
Implementation of Life cycle assessment (LCA)
LCA is one of the techniques used to provide a gen-
eral quantitative measure of levels of environmental
impact including global warming that products have
through their life cycles. We evaluate the environ-
mental compatibility of a product using this method.
Our rate of implementing LCA in our Eco-products
was over 90% in fiscal 2016.
Eco-products are presented in catalogs and other materi-als with a LEAF symbol.
Life Cycle Processes Reviewed in LCA
Effects on the natural environment (global warming) are assessed at each stage of the life cycle,
based on energy consumption and the amount of CO2 emissions.
Natural environment
Life cycle processes reviewed in LCA
Recycling(material, chemical, thermal) Reuse
Processing of parts
Processing of products
User
Collected and transportedDisassembled
Disassembled
Disassembled
Crushing
Manufacture of materials
CO2 energy CO2 energy
CO2 energyCO2 energy
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200
150
100
50
0
236 types
Number of products certified as eco-products(Total number of products in all divisions)
151169
190210 225 236
(Types)
CrushedSelected
Final disposal
Transportation and distribution
User
Environmental Policy
Basic PhilosophyThe SANYO DENKI Group helps preserve the global environment and enhance humanity's pros-
perity through its corporate activities for society and the environment.
Basic PolicySANYO DENKI CO., LTD., comprising Kangawa Works, Shioda Works, Fujiyama Works, Technology
Center and Head Office, develops, designs, manufactures and sells cooling fans, UPSs, power con-
ditioners for photovoltaic generation systems (PV Inverters), engine generators, servo systems,
stepping systems, controllers, encoders, and driving devices. Under the principles listed below,
each member of SANYO DENKI will take part in eco-friendly activities to help preserve our abun-
dant global environment.
1. To enhance our environmental performance, we will continuously improve the environmental
management system and work hard to prevent pollution and reduce the environmental impact
of our activities.
2. We will assess the environmental impact of our corporate activities and focus on our environ-
mental targets. We will also deal with the following as high-priority themes for environmental
management.
(1) Develop, design, manufacture, and sell environment-friendly products
(2) Reduce or eliminate the use of hazardous chemicals
(3) Reduce the environmental impact (energy consumption, number of copies, waste, etc.) of
business activities
(4) Contribute to the local community
(5) Protect biodiversity and ecosystem
3. We observe environmental laws, restrictions and other rules relevant to our company and work
hard for environmental preservation.
4. We document, carry out and maintain our environmental principles, make them known to all our
employees, and ask that our employees both cooperate in the pursuit of these principles and
reflect them in our environmental management.
5. We will review the environmental management system periodically.
6. We will openly publicize the environmental principles to parties in and outside the company.
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Environmental Management
Eco-Products in Fiscal 2016
Chemical Substance Management
Results of LCA
Eleven new Eco-products were developed in fiscal 2016. The LCA results are based on a comparison of the
amounts of CO2 emissions during use between newly developed models and their immediate predecessors.
Since these products are used for a long time, the reduction of CO2 emissions during use will be effective in
preventing global warming. The following results are calculated based on the CO2 emission volume for one year
(result of LCA divided by the service life of a product).
Establishment and Use of Chemical Substance Management Guidelines
In August 2005, the Company established its Chemical Substance Management Guidelines for the manage-
ment of hazardous substances, concerning parts and materials used for the Company’s products. The Guidelines
provide management rules concerning substances specified in various laws and regulations, such as substances
whose use is restricted or prohibited by the RoHS directive, SVHC (high-concern material) in REACH, substances
banned by domestic and foreign legislation, and substances designated by the Japan Green Procurement Survey
Standardization Initiative (former JGPSSI). We keep these guidelines up-to-date by making necessary revisions
in response to changes in relevant laws and regulations (last updated in March 2017). These include definitions
of terms, RoHS threshold values, survey questionnaires for our suppliers on chemical substances that affect the
environment, and a guarantee form to assure that no RoHS-restricted substances are included in the materials
we use. Currently, we request that our suppliers agree to abide by our Guidelines, and that they submit a survey
questionnaire and a guarantee form to assure that their supplies contain no RoHS-restricted substances.
Green Purchases
The Company actively purchases stationery and office supplies that are environmentally friendly, such as prod-
ucts using recycled materials, substitute materials and waste materials, refillable products, products with
replaceable parts, and products designed for recycling.
92 × 92 × 76 mm Counter Rotating Fan
San Ace 92 9CRA type
Models used for LCA comparisonNew model: 9CRA0912P0G001
Conventional model: 9HV0912P1G001
28%
20%
CO2 emission
Power consumption
Reduction of Hazardous Chemical Substances
The Hazardous Chemical Reduction Design Working Group, a subordinate body of the Chemical Emission
Subcommittee, is working together with the design sections of business divisions to focus on dealing with
regulated substances or those banned by the RoHS directive.● We are expanding the number of models that comply with the RoHS directive (six substances): Cooling fans
and stepping motors are compliant. Servo motors, servo amplifiers, stepping motor drivers, and power supply systems are on their way toward becoming compliant. Models complying with the RoHS directive are expanding.
● Examinations and measures to find alternatives for phthalic esters (four substances) added to the RoHS direc-tive are being implemented (with a plan to become compliant by July 2018).
● Examinations and measures to find alternatives for new and additional regulated substances will be con ducted at the customer’s request.
● Examinations for the specified substances in rules and restrictions will be conducted at the customer’s request.● Examinations for hazardous chemical substances contained in our products are under way, based on the Chem-
ical Substance Management Guidelines.● We are providing guidelines within the Company regarding China RoHS and countermeasures for substances
banned by the revised RoHS directive and REACH.● Analysis for the six RoHS substances contained in procured materials is being conducted using an X-ray fluo-
rescence (XRF) analyzer. ● We are conducting inclusion surveys for substances of very high concern (SVHC) (173 substances) in REACH
reg ulations and providing information to our customers. ● We are conducting inclusion surveys according to the Article Information Sheet (AIS) specified by the Joint
Article Management Promotion Con sortium (JAMP), and providing information to our customers.● We are working on the transition process from AIS to chemSHERPA, which is a common scheme for transmit-
ting information about the chemical substances contained in products.
* RoHS Directive: DIRECTIVE 2011/65/EU OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of June 8, 2011 on the restriction of the use of certain hazardous substances in electrical and electronic equipment. RoHS six substances: lead, hexavalent chromium, cadmium, mer-cury, and two specific brominated flame retardants (PBB and PBDE).
* China RoHS directive: The directive on the restriction of the use of certain hazardous substances in electric and electronic products enforced by the Chinese government.
* REACH (Registration, Evaluation, Authorization and Restriction of Chemicals): A European Union regulation that administers the registration, evaluation, authorization, and restriction of chemical substances.
* AIS: Basic information transmission sheet recommended by JAMP for conveying information on chemical substances contained in products.* chemSHERPA: chemSHERPA was developed under the leadership of the Japanese Ministry of Economy, Trade and Industry as a common
scheme for handling information across a supply chain, which is promoted by JAMP.
Compliance with the PRTR
The Company registers and reports the amount of discharge and transportation of reportable PRTR controlled-
substances when over one ton is consumed at a factory annually.
In fiscal 2016, notification became required on styrene which is used at the Kangawa Works, as well as phos-
phoric acid triphenyl, methylnaphthalene, antimony and their compounds, which are used at the Fujiyama Works.
Lead has not been required to be reported for the last 10 years because of the reduction of lead usage due to
RoHS-compliant soldering.
PRTR (pollutant release and transfer register): A system for collecting, aggregating and publishing data on various hazardous chemical substances to
see how much of these substances are released into the environment from what sources, or are transferred with waste from what facilities.
PRTR-controlled substancesPRTR-controlled substances
(that are required to be reported and used in amounts of one ton or more)
Styrene Kangawa Works 13.0t
Triphenyl phosphate Fujiyama Works 3.3t
Methylnaphthalene Fujiyama Works 2.8t
Antimony and its compounds Fujiyama Works 2.5t
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Social Initiatives
Internal TrainingGlobal Sales Meeting
SANYO DENKI hosts the annual Global Sales Meeting to pro-vide its sales representatives around the world with an op-portunity to get to know one another. During the meeting, participants engage in discussions on a wide range of topics, including sales-related information, product development sta-tus, and some of the recent developments at the eight techni-cal center locations across the globe, in order to further their knowledge and understanding.
Global Technical Meeting
The Global Technical Meeting is designed to enable the SANYO DENKI Group engineers to share technical information so they can use it in future product development. Engineers from SANYO DENKI locations around the world gather under one roof and participate in factory tours, technical training, and new product demonstrations. The meeting has served as a great op-portunity for engineers to gain a better understanding of one another and enhance their technical knowledge.
Eliminating Conflict MineralsProcurement PolicyThe Electronic Industry Citizenship Coalition (EICC), whose members include major electronics companies and their suppliers around the world, encourages companies to monitor their supply chains to eliminate the use of mineral re-sources produced in the Democratic Republic of the Congo which are considered conflict minerals . To address this issue, the SANYO DENKI Group has formulated the procurement policy stated below.
1. The SANYO DENKI Group recognizes its responsibilities as a member of the global community and acts in accor-dance with social norms and relevant laws and regulations of the countries where it operates.
2. Under this policy, conflict minerals include tin, gold, tantalum, tungsten, and cobalt.3. We will occasionally check whether or not suppliers of parts and materials, which are likely to include any of these
minerals, use minerals produced in the Congo as well as the country of origin of the minerals they use.4. We will immediately stop buying parts or materials when they are found to contain any minerals produced in the
Democratic Republic of the Congo or neighboring conflict zones. Suppliers are asked to promptly contact our pur-chasing department whenever they have discovered that any of their products contain or may contain a conflict mineral and follow the instructions provided.
5. Regardless of the policy stated above, it may be difficult to identify the country of origin, refinery, and upstream suppliers of a material since conflict minerals constitute rare metals or precious metals and are traded in various forms and through different channels. We will conduct follow-up investigations at appropriate intervals to ensure that the investigation is thorough.
Work-Life Balance SupportSemiannual briefing sessions are held for pregnant employees, those who will be providing nursing care for family members, as well as those juggling work and child or family care responsibilities. The session is designed to provide these employees with information about laws related to childbirth, child rearing, and family nursing care, the relevant employee rules and regulations, health insurance benefits, and so on. In fiscal 2016, the briefing sessions were held at the Fujiyama Works and Technology Center in September, October, and February.
InternshipsInternships were provided to university students at the Tech-nology Center in August and October 2016. Internships offer opportunities for students to get hands-on experience in prod-uct evaluation tests, control simulations, and other operations performed at the Company.
Factory ToursThe Company hosts factory tours for elementary and junior high school students as well as users of care facilities for the disabled. In July 2017, six people from a local care facility were invited to the Fujiyama Works. The visit included a tour of the uninterruptible power supply (UPS) production line and a meet-ing with Fujiyama Works employees where they talked about operations at the factory.
Neighborhood cleanup
Community EngagementEmployees of the Head Office, Technology Center, and domes-tic factories participate in neighborhood cleanup activities at least once a month. The Kanagawa Works carried out a large-scale neighborhood cleanup program in cooperation with the local community association.
Global Sales Meeting
Global Technical Meeting
Factory tour
Hands-on program
Safety and Health
Training on general emergency life-saving methods
Next-Generation TrainingSANYO DENKI is moving ahead with an eye on realizing the objectives of the Japanese Act on Advancement of Measures to Support Raising Next-Generation Children, i.e., helping build a society in which the next generation of children are born and raised in good health. That includes enhancing the work environment and conditions for its employees so they can do their jobs with peace of mind as they maintain a healthy balance between work and family life. Pursuant to this act, in July 2016 the Company was awarded a certificate (known as Kurumin) in recognition of the excellent childcare support it provides to employees.
To prevent occupational accidents and ensure the safety as well as mental and physical health of employees, we formed the Safety and Health Committee at the Head Office and Ueda Area (its Technology Center and factories). Designed to provide a safe and healthy work environment, the committee appoints officially certified administrators and environmental management experts to ensure occupational safety and health.
Activities of the Safety and Health Committee
<Workplace inspection visits> Committee members visit workplaces to inspect whether appropriate measures have been taken to solve any problems pointed out in the previous month’s inspection and checks for any areas that need improvement.<Preventing occupational accidents> During workplace inspection visits, committee members check certain priority issues to prevent occupational accidents. All branch offices and factories are informed of occupational accidents that have occurred so that they can implement appropriate measures to prevent any recurrence.<Reports from administrators> The committee receives reports from safety and health administrators concerning environmental measurements, inspection schedules, announcements, training sessions, and revisions to laws and regulations.<Activities for maintaining and improving health> The committee organizes medical checkups for employees with the aim of achieving a 100% examination rate. Employees with health problems are provided with medical counsel-ing and follow-up examinations. The committee also provides health consultation services to prevent lifestyle dis-eases in accordance with the annual schedules of branch offices and factories.<Mental health care> The committee provides contacts for consultation services, training for administrators, self-care training for general employees, and counseling by nurses.<Training and drills> Emergency drills are conducted.<Installation of automatic external defibrillators (AED)> AEDs are installed at the Head Office, Osaka Branch, Na-goya Branch, and Ueda Area (its Technology Center and fac-tories). On top of that, to enable employees to act quickly when the unexpected happens, training on general emer-gency life-saving methods is periodically provided.
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SANYO DENKI CO., LTD.http://www.sanyodenki.co.jp
統 合 報 告 書2017
SANYO DENKI CO., LTD.http://www.sanyodenki.co.jp