2008 English Version
Transcription
2008 English Version
SHIMANO INC. Corporate Communications Corporate Communications & Human Resources Division 3-77 Oimatsu-cho, Sakai-ku, Sakai, Osaka 590-8577, Japan Phone: +81-72-223-3957 This booklet uses “lake papyrus” (paper mixed with reed). A reed that grows around “Nishinoko”, an inner lake of Lake Biwa, helps keep the lake water clean from spring to winter when it withers. “Lake papyrus” uses pulp made by recycling reed that needs to be mowed before withering each year. Producing one copy of this booklet is comparable to cleaning about 1,440 liters of water from Lake Biwa. Fax: +81-72-223-6045 Published 31 July 2009, 2009. ©2009 Shimano Inc. All rights reserved. Printed in Japan BFP XBC IZM K-004 Social Activity Report 2008 About the Shimano Social Activity Report 2008 1 Creating and Enhancing Corporate Value Providing captivating products 2 Developing capable human resources for Shimano 4 Enhancing corporate governance 6 Social Activities in 2008 Creating Exhilarating Joy 8 25th anniversary of Shimano Suzuka Road Race 25th anniversary of Shimano Japan Cup, etc. Improving/Conserving the Environment 14 Revising the Shimano Green Plan to reduce environmental impacts Initiatives for reducing environmental impacts, etc. Building Confidence 20 Career education project, etc. Team Shimano Performance Data 26 Some Thoughts about the Social Activity Report 2008 28 The Team Shimano Philosophy 29 About the Shimano Social Activity Report 2008 Outdoor sports enable people to have fun through the enjoyment of communing with nature. Shimano hopes to promote the joy of outdoor sports, thereby enriching people’s lives. To this end, Shimano conducts operations in respective business segments of bicycle components and fishing tackle, providing our customers with captivating products so as to widely contribute to society. Recently, social conditions have become increasingly difficult, necessitating enterprises to go back to the basics. Enterprises must reconsider their own significance in earnest from a multifaceted perspective so as to fulfill their responsibilities as self-reliant corporate citizens. In this respect, this year’s Social Responsibility Report introduces our various activities, with the two keywords “continue” and “steady.” It is important for us to “continue” our diligent efforts to faithfully fulfill our responsibility as corporate citizens. I believe that, just like a tree thickens its trunk by growing a new ring each year, if we continue to work on what our Company should do persistently and honestly, eventually our activities will earn society’s trust. One of these activities is organizing events to ensure that consumers can experience and fully appreciate the joy of cycling and fishing. For a quarter century now, we have organized the Shimano Suzuka Road Race, a sports cycling festival, and the Shimano Japan Cup, a fishing tournament. It is 1 our great pleasure that these annual events have furnished enjoyment for so many people, in We are also committed to “steady” business operations, which will enable us to take on new challenges while continuing to accomplish our duty, to provide captivating products, Shimano will also introduce a variety of bicycle and fishing gears, and thereby create and promote new bicycle and fishing cultures. It is my sincere hope that this Social Activity Report will help deepen understanding of Shimano’s wide-range commitment to social responsibility. Yozo Shimano President, Shimano Inc. About the Shimano Social Activity Report 2008 response to the social needs that change every year. Creating and Enhancing Corporate Value Providing captivating products We at Shimano have a basic philosophy for business activities, which is to provide “captivating products” to society. We deliver bicycle components that are easy-to-use and comfortable for everyone, fishing tackle that realizes the fusion of technology and human touch, as well as other various gear, including sportswear and shoes that make cycling and fishing even more enjoyable. By providing these products, we wish to encourage the development of cultures that feature enriched cycling and fishing lifestyles. Bicycle components 2 Shimano released its new Dura-Ace series of top-grade road racing components. The lineup includes models featuring an electronically controlled shifting function, in pursuit of ultimate stress-free operation. Shimano fully redesigned its flagship model Dura-Ace for the first time in five years. Without being complacent about the level of completion achieved by the previous series, we have further evolved Dura-Ace by redesigning into a new high-precision system. We have also developed a model incorporating our Shimano Electronic Intelligent System (SEIS), an electronically controlled shifting system. The new Dura-Ace series enables ideal gear shifting even in top-level, demanding races. Deore XT wins Good Design Award Shimano’s components for MTBs, Deore XT, received a Good Design Award in 2008. Fishing tackle Winning many awards from overseas trade shows Inauguration of the Lifestyle Gear Division Proposing more enriched lifestyles In January 2009, Shimano inaugurated the Lifestyle Gear Division. This new division aims to propose more enriched lifestyles featuring cycling and fishing, by producing cycling and fishing wear and shoes, to totally enhance the use of bicycle components and fishing tackle. Shimano intends to create new lifestyles enabled by captivating products, by considering the bicycle and fishing cultures from broader perspectives. 3 Creating and Enhancing Corporate Value In June 2008, at the 2008 European Fishing Tackle Trade Exhibition (EFTTEX) held in Rome (Italy), Shimano won the Best New Reel award for its Aero Technium MgS XSA. This is the second consecutive year that Shimano has been honored with the award, which was given for the Stella FD (export model) the previous year. Moreover, Shimano products won five awards at ICAST 2008, held in July 2008 in Las Vegas (USA). Specifically, the Curado E Series was awarded the Best of Show and recognized as the Best Freshwater Reel. Also, the Clarus A, Stella SW Series and Tescatta won awards in three other categories. Shimano has received ICAST awards for seven consecutive years. Developing capable human resources for Shimano Everyday activities of each member of our Company are the driving force behind Team Shimano. Shimano offers various opportunities for its staff members to cultivate rich creativity, and voluntarily take on new challenges. Induction program for new Team Shimano members 4 The curriculum is focused on experience-based education, including training in bicycle and fishing tackle assembly. Trainnes assemble and actually use the products during in-field training to better understand Shimano products. At the manufacturing site ... A training program called “Shimano Large-Boned School” is offered, taught by retired senior workers and veteran staff members. Trainees learn not only necessary knowledge for production, such as metal processing technology, material knowledge and cost calculation, but also techniques for operating manual turning machines. In this way, we hand down manufacturing basics to the next generation. Ongoing for 3 years In 2008, Shimano held four Motivation-Raising Workshops for all members of the Quality Control Division. Members worked on such themes as “Ideal QC persons,” and integrated and shared the goals of each section as a team. “Design Sugoroku” created through discussion among all members of the Quality Control Division during the Motivation-Raising Workshops. This Sugoroku game enables members of each section to describe their goal in words, and compile it as a team, thereby increasing team motivation. Other training/education activities Shimano is implementing its own human resource development by organizing various training and exchange programs. Description SLD training In this training program for managers, called “SLD (Shimano Leadership Development),” trainees create and work on specific business-related problems in a group. This program is now held for department directors as well as overseas Team Shimano members. Long-term training program at overseas dealers Aspiring staff members selected by managers are dispatched to bicycle dealers overseas to work there as assistants for three months. Trainees see firsthand the bicycle situations and cultures that are different in each country, gaining experience not possible with short-term business trips. Shimano headquarters accepts Team Shimano members from overseas bases for Get-together party for overseas training. Twice a year, a get-together party is held to help them better understand trainees Shimano and Japan. 5 Ongoing for 8 years Ongoing for 7 years Ongoing for 2 years Fishing education program This in-house education program was launched mainly by female staff members so that trainees can more fully realize the joy of fishing. Started in April 2008 Technical support As technical support providers, Shimano staff members take part in the Shimano Suzuka Road Race, and the Tour of Japan bicycle race, in which many Japanese and overseas cyclists participate. These staff members learn firsthand how Shimano products are actually used. Technical support providers served 85 total days (2008) Creating and Enhancing Corporate Value Name Enhancing corporate governance We at Shimano believe that transparent and efficient management is required to fulfill our social responsibilities as good corporate citizens and earn society’s trust. This section introduces the Internal Control Project Office, which works on activities to en hance corporate governance under our Company’s own initiative, without relying on experts. Ongoing for 3 years 2008 activities to complete preparations for full-scale operation to start next year 6 The Financial Instruments and Exchange Law (previous Securities and Exchange Law) requires a company to “establish internal control over financial reporting and present internal control reports,” in order to prove to third parties that the company does not window-dress or present any misstatements in financial reporting. By newly establishing the Internal Control Project Office, Shimano has striven to develop internal control and assessment systems on its own initiative for the past two years. The following shows our activities carried out in 2008, with the aim of starting full-scale operation of internal control in 2009. Establishing a company-level controls by all Team Shimano members worldwide We proceeded with the establishment of a company-level controls, which serves as a foundation for internal control over all Team Shimano members around the world. From such perspectives as consolidated income ratio and local representation, 20 subsidiaries/ affiliates with special importance were designated to be evaluated in the first year. Initially, different approaches arose regarding internal control and understanding of the related legal system, between Shimano headquarters, which first started internal control efforts, and subsidiaries/affiliates, most of which are located overseas. Therefore, we needed to build a consensus between them. To this end, project meetings were held bringing together responsible persons from respective companies, and headquarters staff members were dispatched to subsidiaries/affiliates to discuss business processes together. As a result, now the entire Team Shimano has begun to act in concert. Members of the Internal Control Project Office Establishing internal control that is not just theory but is truly effective — Process-level control — Establishing an internal control system relating to business processes is a very laborious task. It entails documenting all the process flows, narrative of each business process and risk control matrix, as well as assessing the design and operation status of internal controls. We assessed 11 companies, with 317 processes evaluated in the head office of Shimano alone. From the Internal Control Project Office and the Process Analysis (Information Systems) Section, eight members were selected to be in charge of documentation. They divided the work to prepare individual documents by checking and reviewing each business process. By taking time to communicate with relevant counterparts, they were able to establish an accurate internal control system that was neither theoretical nor generally applicable,but our own practical system. The system was incorporated as part of Shimano’s business process. Members of respective divisions who support the internal control system also deepened their understanding of internal control. With design of the internal control system almost done, including IT control, it now must be operated appropriately. As for IT control (control of information technologies supporting internal control), the Information Planning Section took the lead in establishing the system, which was completed at the end of 2008, almost as scheduled. Henceforth, we should reinforce implementation of IT control in our everyday business activities. Regarding assessment implementation, the Internal Control Project Office will work toward full-scale operation while obtaining cooperation from staff members who have a wealth of experience in internal audits regarding ISO- and operational audit work. We will verify the operation in 2009, in which assessment is commenced, to improve the internal control system and review the scope of assessment. Through such activities, we will continue our efforts to be a corporation that is trusted by both the community and society. 7 To prove that the company does not windowdress or present any misstatements in its financial reporting, and to visualize the operation Company-level controls Process-level controls IT control Business processes related to business activities Business processes related to financial reporting IT company-level controls IT general controls IT application control Regarding business operations in which risks that may lead to misstatements in financial reporting exist, to implement controls for mitigating such risks to a satisfactory level. To control information technologies required to establish internal control over financial reporting Creating and Enhancing Corporate Value Control activities required by the Financial Instruments and Exchange Law Creating Exhilarating Joy Offering enjoyment and fun for everyone 8 25th anniversary of Shimano Suzuka Road Race Supported by more than 180,000 participants The Shimano Suzuka Road Race marked its 25th anniversary in 2008. The purpose of this bicycle race event is to make cycling sports more accessible and enjoyable for many people. This race began as the Shimano Greenpia Road Race, held in 1984 in Miki City (Hyogo Prefecture). It was well-received as an epoch-making event opening the door of cycling sports to beginners and even elementary school children. Participants totaled about 870 in the first race, increasing year by year. The race site was moved to the Suzuka Circuit for the 9th race in 1992. Since then, the race has been organized under the name “Shimano Suzuka Road Race.” Ongo i n g f o r 25 ye ar s Objectives and roles of Shimano events The Shimano Suzuka Road Race has two major roles. One role is to disseminate to as many people as possible the exciting and attractive features of road racing as a fun-to-watch sport, exemplified by the Shimano Suzuka International Road Race held in conjunction with the Shimano Suzuka Road Race. The other role is to offer an opportunity for people of all ages, from children to senior citizens, to enjoy bicycle riding as a sport. Unlike Western countries where bicycle racing culture has a long tradition, Japan has not yet fully developed an environment in which people can enjoy the sporting nature of bicycle riding. Since its inception, the race has always aimed at fulfilling the above two roles. To achieve this objective, we have striven to design a program that can please more people. Supported by many people, the Shimano Suzuka Road Race has continuously been run for a quarter century. We will continue to help develop bicycle culture in Japan, while sharing the excitement and memories with race participants. The Shimano Bikers Festival began as a mountain bike event in 1991. This festival has been going now for 18 years, attracting approximately 3,000 participants every year. In 2008, the festival was held in Fujimi Town, Nagano Prefecture with a largely expanded scale of on-road events. The festival continues to evolve, enabling riders from cycling’s various disciplines to take part. Ongo i n g f o r 3rd Shimano Greenpia Road Race (1987) 18 ye ar s 9 Social Activities in 2008 Creating Exhilarating Joy Shimano Bikers Festival, a comprehensive bike event held in the natural environment Participants receive advice on mastering proper riding form from members of Shimano Racing Team Promoting Bicycle Culture in China Shimano Bikers Festival in China To promote China’s bicycle culture, since 2003 Shimano Shanghai has organized a series of racing events called “Shimano Bikers Festival” in China, taking into account the roles and achievements of the Shimano Suzuka Road Race. In 2008, the festival was organized in a more orthodox manner by holding the following three events. Ongoing for 6 years 10 • Mountain bike race in Nanjing (May) • Circuit race in Beijing (September) • Road race on Hainan Island (October) Other overseas cycling events Overseas subsidiaries/affiliates are also active in promoting cycling culture in each country by engaging in various cycling events. For example, Shimano Australia held a mountain bike race in March 2008 for racers aged 11 to 17. And Shimano Singapore provided cooperation in organizing an enduro race in November. Shimano Racing Team Aiming to train world-class riders Shimano has owned racing team, a history of 37 years. As a team including Japanese riders, current racing team “Skil-Shimano” has been the only team authorized by the Swiss-based UCI (Union Cycliste Internationale [International Cycling Union]) as a “professional continental” team, which is ranked second among UCI’s three team categories. Along with Dutch-based manufacturer Skil, Shimano has sponsored this powerful team. Skil-Shimano team members include Japanese as well as Chinese riders, all striving to win top-level races. Skil-Shimano also acts as a bridge for young riders to participate in European races. Skil-Shimano Ongoing for 37 years Aiming to promote bicycle culture Name Shimano Racing Cycle Academy Support for regional events Life Creation Space “OVE” (Minamiaoyama, Tokyo) Description Shimano has held cycling classes in various regions so that more people can Ongoing for enjoy the sport of cycling. Riders of Shimano Racing team provide 4 years instructions for participants. We have helped organize safe and enjoyable events by offering Shimano Approx. 300 events products to support the events, providing technical support, and dispatching held annually referees. OVE holds various events, as a source of information about new bicycle culture. Ongoing for OVE proposes a new lifestyle that is enjoyable for adults by combining bicycle strolling with taking photographs, tours to various buildings, and 3 years other interesting plans. Bicycle strolling and other touring events The Bicycle Museum holds cycling events for beginners. We promote activities to enhance the joy of bicycle riding. Support and cooperation for UCI Shimano has supported the UCI (Union Cycliste Internationale) since 1999. As an official supplier, Shimano provides assistance in promoting bicycle races and cycling sports around the world. Ongoing for 12 years Ongoing for 10 years Support for participants in a regional event OVE-proposed “Bicycle strolling” that even beginners can enjoy Social Activities in 2008 Creating Exhilarating Joy OVE, an information source for new bicycle culture 11 1st Shimano Japan Cup “HERA (carp) fishing” 25th anniversary of Shimano Japan Cup We are pleased to celebrate the 25th anniversary of Shimano Japan Cup, thanks to generous support from many people, including participating anglers and local residents. Ongoing for 25 years 12 Starting with about 100 participants The Shimano Japan Cup, a fishing tournament organized by Shimano, recently marked its 25 anniversary. This tournament comprises four fishing categories: NAGE (cast) fishing, HERA (carp) fishing, AYU (sweetfish) fishing, and ISO (surf) fishing. Annually about 6,000 people participate in the national and regional tournaments. For the past 25 years, the Shimano Japan Cup has constantly aimed at improving the social status of the fishing culture, promoting exchange of latest technologies, and increasing the number of sports anglers. The first Shimano Japan Cup was held in 1984 (only in the NAGE and HERA fishing categories), with about 100 participants. At that time, we organizers were still very much in a process of trial and error. In the second and later tournaments, the number of fishing categories was increased to four, the present number. We also gradually increased the numbers of regional tournaments and venues. In 2008, a total of approximately 50 regional tournaments were held all over Japan. Winners of regional tournaments and seeded anglers who won the previous year’s tournaments can participate in the national tournament. In each fishing category, participating anglers earnestly compete with one another, making use of their excellent skills and experience. Teruyoshi Fukuba Sales Planning, Fishing Tackle Sales, Fishing Tackle Division Aiming to organize a tournament that is loved by more sports anglers For a quarter century now, we have been able to continue organizing the Shimano Japan Cup. We owe this to many people who have provided us with generous support. These people include participating anglers, governments of municipalities that host the tournaments, tourist associations, and instructors who assist in organizing tournaments. In return for their support, we distribute scenes of the exciting tournament via TV programs sponsored by Shimano such as “Seeking After Fishing Romance” and “Fishing Vision,” as well as through the Shimano website, so as to promote the fishing culture. After a tournament is finished, participants and staff members work together to clean up the competition venue to protect the beautiful fishing sites. We will continue devising better management to organize fishing tournaments that are loved by more sports anglers. Change in number of applications for Shimano Japan Cup (Persons) 8,000 6,000 4,000 2,000 0 00 01 02 HERA (carp) 03 04 NAGE (cast) 05 06 07 AYU (sweetfish) 08 (Year) ISO (surf) Aiming to promote the fishing culture Name Description Shimano Cup Hera Fishing Tournament in South Korea (overseas) In May, a HERA (carp) fishing tournament was held at Dragon Rock Pond in Yangchun City, South Korea, with 168 participants. The champion and runner-up were invited to Started in May 2008 participate in the preliminary in the HERA fishing category of the Japan Cup. Cast Fishing Tournament in Hong Kong (overseas) In September, we organized a tournament for Sillago casting, at which instructors provided practical coaching for participants so they can realize the joy of casting. Support for the fishing class “Enjoy Fishing by Parents and Children” Since 2007, Shimano has provided support for the fishing class “Enjoy Fishing by Parents and Children.” After fully enjoying boat fishing, participating parents and children cut and trim a fish by themselves, and then eat the dish together. This is a unique class that incorporates some dietary education. Shimano TV Shimano TV broadcasts over the Internet various image information on fishing. It was updated in February 2008 by further increasing the contents, and has enjoyed great popularity. Fishing Cafe Project The Fishing Cafe Project, aimed at creating a new fishing culture, is an activity that evolved from our dream to create a new fascinating program on understanding “fishing” from multidimensional points of view that would include literature, art, society, education, nature and the environment. Ongoing for 2 years Ongoing for 4 years 13 Ongoing for 8 years Winners of the fierce battle in the finals Social Activities in 2008 Creating Exhilarating Joy HERA (carp) fishing at the 25th Shimano Japan Cup Started in September 2008 Improving/Conserving the Environment Cooperation in improving/conserving the natural, living and product-use environments Revising the Shimano Green Plan to reduce environmental impacts Shimano produces components for bicycles, which have attracted much attention as an ecological means of transportation, and fishing tackle, which is used to enjoy fishing in the natural environment. Since 2004, we have designed the Shimano Green Plan to reduce environmental impacts that could arise not only when our products are in use but also in our production processes. The Plan was revised to version 6 and went into operation in May 2008. This section introduces the objectives and contents of version 6 of the Shimano Green Plan . Ongoing for 4 years Revision triggered by product nonconformity 14 The Shimano Green Plan was revised to version 6 in response to a product nonconformity found in a cycling glove in November 2007. Specifically, we detected that the cycling glove contained the amine benzidine, whose level was within the standards required by Japanese laws and regulations but exceeded our self-imposed control level set in the Shimano Green Plan. We thus voluntarily recalled the cycling glove. We are very sorry for any inconvenience we may have caused to users and dealers. We greatly regret this nonconformity, which occurred when we were addressing other difficult challenges, including replacement of hexavalent chromium used in our bicycle components to trivalent chromium. We took the occurrence seriously, and concluded that it was necessary to fulfill our corporate responsibility to reduce environmental impacts by designing and implementing a more effective Green Plan. The Shimano Green Plan was then revised based on this idea. Shimano products are used around the world, and environmental standards are expected to become increasingly stringent in the future. In response, we organized a project team comprising more than 20 Team Shimano members engaged in quality control and manufacturing tasks in various parts of the world. These members conducted surveys of laws and regulations concerning chemical substances whose use is banned in respective countries/regions. Based on the survey results, we established our self-imposed standards, which were then incorporated into our revised plan. These activities enabled us to improve the Shimano Green Plan as well as raise awareness among Team Shimano members in each country to strictly comply with the rules that they themselves established. Kazuaki Kuwabara QIT Section, Quality Control Division Shimano Green Plan Ver. 6 added the following modifications to Ver. 5. Modification Description Added substances prohibited from use Added PFOS, phthalate, and PAH Clarified application scope More clearly stipulated that the Green Plan also applies to sales promotion products and packaging materials. Prohibited intentional use Totally prohibited substances with restricted use, including uses that are difficult to detect (e.g., undercoating), with aim of eliminating total use of these substances rather than just eliminating their detection. A grace period A grace period was granted to realize discontinuance of substances whose use is prohibited but are difficult to replace with alternatives. System established to ensure compliance of Team Shimano, together with partner companies Previous revisions of the Shimano Green Plan focused on reviewing and strengthening the standards. Based on lessons learned from the voluntary recall of the cycling glove, however, when we created version 6 of the Green Plan we emphasized how to comply with the established standards. Specifically, we handed out Self-check Sheets to partner companies and requested they evaluate themselves to see if any factors existed in their manufacturing processes that could be obstacles to compliance. Our request put a strain on partner companies because they had to conduct retroactive surveys of raw materials they had already procured. If points were found needing improvement, they were required to describe improvement plans. After holding explanatory meetings, we communicated with about 200 partner companies to give advice on self-checking and improvement methods, through face-to-face discussions and e-mail. We also provided them with research results obtained by Shimano Research Laboratories. In this way we worked together with our partner companies to establish our current system to produce products with less environmental impact. During our Green Plan revision, we felt that environmental awareness in society has been rapidly increasing in recent years. Many partner companies commented that they would like to work hard to comply with standards that are important for environmental protection. If looking at the bicycle and fishing industries, we find that there is a move to establish similar green plans in the respective industries. The present circumstances, then, has strongly made us realize anew our social responsibility. In cooperation with Shimano Research Laboratories and production divisions, we will continue striving to reduce environmental impacts by reviewing and implementing the Shimano Green Plan. Social activities in 2008 Improving/Conserving the Environment Responding to increasing social demands 15 Initiatives for reducing environmental impacts The Law Concerning the Rational Use of Energy (the “Energy Savings Law”) was revised and came into force in April 2006. Since then, we have conducted systematic reviews of our energy use. This section introduces our energy-saving achievements according to the three-year plan begun in 2008. Ongoing for 3 years Key to success is visualization of energy-saving effects In 2008, as the first step we decided to work on the theme “management improvement and elaboration,” on items that do not entail heavy capital investment. Although required investment amounts varied, it is easy to change equipment to ones with lower energy loss, based on the detailed diagnostics. However, what is indispensable for reducing environmental impacts is long-term continuation and sustainability. To achieve these, all concerned members must develop proper environmental awareness and manage the equipment economically. To activate energy-saving efforts, collecting feedback of improvement results is most important. Energy-saving also leads to cost reduction. We need to establish a system that enables involved members to always realize that their environmental efforts are helping to realize certain benefits not only with energy savings, but also in improving the profitability of the section in which they belong. In this regard, it is important to appropriately define the basic unit for energy consumption management. In 2008, we discussed what the most appropriate basic unit might be, based on analysis of correlations between various variables such as sales amount and activity time. Moreover, we also need to develop equipment and devices to measure and visualize energy consumption in each production process. In 2009, while addressing these present challenges, we also intend to carry out energy-saving measures that involve greater investment. 16 “Energy-saving” perspective vs. “manufacturing” perspective In 2008, when we were about to start the first step, we were faced with the fact that our Company’s manufacturing techniques had matured. Taking the press process for example, it was established based on the manufacturing experience and expertise we had accumulated so far. We therefore needed to hold many discussions to have the relevant manufacturing divisions understand and accept our proposal to change the process management procedures. Even now, for some processes we have not reached a conclusion on how to change their procedures for process management. Koji Nakagawa, General Affairs Section of Human Resources and General Affairs Division Ensuring customers can continue comfortably using Shimano products for longer times We work to provide our customers with after-sales support to ensure long-term use of our products, since we regard this as an important activity that helps reduce environmental impacts. Activity type Activity Description Shimano Technical Seminar (bicycle components) Technical support for dealers Shimano Service School (fishing tackle) Customer Service Section Consumer support Shimano organizes lectures for dealers to provide repair and maintenance services for Shimano products in a speedy and reliable manner. This section receives and responds to customer inquiries. We have established a distribution network to quickly deliver spare/repair parts and supplies for customers worldwide. Distribution of spare and repair parts Shimano intends to encourage our customers to continue using its products for a long time. To this end, we will continue promoting cooperation between our Customer Service Section with Shimano dealers, while organizing lectures to improve their repair and maintenance skills. Environmental conservation Shimano willingly participates in activities to protect local natural environments. Activity Description Cutting reeds along the Yamato River To stimulate the growth of reeds, which help purify the water, we cut the reeds along the Yamato River. (In 2008, this activity could not be conducted due to snowfall.) Ongoing for 5 years Shimano Cleanup Project Shimano has implemented this project since 2003, inviting participants from far and wide, under the slogan “Let’s clean up the field around us.” Ongoing for Beach Cleanup Campaign (overseas) Shimano American has continued an annual activity to clean up Bolsa Chica Beach, in California. In 2008, 65 people participated, more than the previous year. Ongoing for Cleaning up the Yamato River We join in this activity twice a year together with residents of the local community. In 2008, a total of 393 staff members and business partners participated. 6 years 6 years Ongoing for 6 years Ongoing for 8 years Social activities in 2008 Improving/Conserving the Environment This activity is held as part of the International Beach Cleanup Campaign, whose goals we are in agreement with. During the cleanup, we keep track of Cleaning activity at Sennan Satoumi Park the variety and amount of garbage collected. In 2008, 168 people participated. 17 Promoting bicycle use Shimano actively promotes the use of bicycles, which are an environment-friendly means of transportation. Bike-to-Work Week (overseas) In the United States, Bike-to-Work (bicycle commute) Week was held from May 12 to 16, 2008. During this time, several million people switched to commute by bicycle. Shimano American encourages its staff members to commune by bicycle instead of by car, and offers a special breakfast for bicycle commuters one day during the Bike-toWork Week. In 2008, 53 Shimano American staff members jointed this program. Traffic safety seminar for bicycle commuters 18 We at Shimano advocate bicycle commuting, and about 30% of staff members at the head office commute by bicycle. In recent years, the number of bicycle accidents nationwide has increased, prompting the Road Traffic Law revisions that took effect in 2008, including several bicycle-related provisions. In response, we held a traffic safety seminar at the Shimano head office for about 300 staff members who commute by bicycle in order to promote proper and safe bicycle commuting. Supporting activities of “Tokyo Cycling Green Map” Shimano actively supports the Tokyo Cycling Green Map Project, which encourages the use of bicycles and tries to restore clean environments around town. (This project is planned and promoted by Urban Ecology Tokyo, an incorporated nonprofit organization.) The Tokyo Cycling Green Map is created by compiling information on roads that are safe to travel by bicycle. Such information is invited and gathered through the Internet. In autumn 2008, a “23 Wards” version of the Map was completed, covering a wider area than the previous “Central Tokyo” version. At Cycle Mode 2008, Japan’s greatest cycling event, staff members of Tokyo Urban Ecology and Shimano cooperated in distributing 10,000 copies of the Tokyo Cycling Green Map to event visitors, free of charge. Ongoing for 2 years June Wong, Shimano American Corp. After first joining this event, I began commuting by bicycle at least once a week. Promoting fish-friendliness Catch-and-release has become an important element of sport fishing. Shimano conducts research and activities to increase the survival rate of fish that have been caught and released. Providing Live Release Boats (overseas) Shimano American has provided Live Release Boats for professional and amateur bass fishing tournaments since 1996. The aim of doing this is to release the tournamentcaught fish alive, in a more reliable manner, after weighing the fish in. Moreover, since 2001 Shimano American has pursued research to increase the survival rate of tournament-caught fish, in partnership with Queen’s University in Canada. If a large number of fish are kept in a tank for long time, the oxygen level will decrease over time. To resolve this problem, Shimano developed the Water Weigh-In System, which enables us to weigh the fish in water in a short time. We would like to continue supporting catch-and-release in fishing tournaments by combining Live Release Boats and the Water Weigh-In System. Live Release Boat Ongoing for 13 years 19 Social activities in 2008 Improving/Conserving the Environment Building Confidence Participating and cooperating in local community activities as a responsible corporate citizen Initiatives for learning & thinking for children Activities in 2007 and before At the school education field – Career Education Project 20 For three years from 2005, Japan’s Ministry of Economy, Trade and Industry promoted the Career Education Project. Shimano participated in this project, together with the University Consortium of Southern Osaka, a non-profit organization comprising universities and junior colleges in southern Osaka. Shimano also cooperated with elementary schools in Sakai City to conduct a program aimed at developing children’s ability to think, on the theme of “The Kind of Bicycle We’ve Always Wanted.” At the Bicycle Museum – Painting Competition for Children Since 1992, Shimano has continued holding a contest of pictures drawn by children on various themes such as “Dream Bicycle” and “Scenery with People and Bicycles.” In 2008, 32,913 people participated in the contest. Ongoing for 17 years In 2007, Shimano received a letter of appreciation for its efforts in the Career Education Project from the Ministry of Economy, Trade and Industry. Activities in 2008 Started new career education In 2007, Shimano successfully concluded its 3-year involvement in the Career Education Project, promoted by the Ministry of Economy, Trade and Industry. However, many involved in the project strongly felt the significance of continuing the project. Fortunately, we were able to start a new career education project with cooperation from the Sakai City Board of Education. Ongoing for 4 years Career education development on wide-ranging themes In 2008, the Bicycle Museum of Shimano Cycle Development Center received a commendation for excellent achievement in career education from the Minister of Education, Culture, Sports, Science and Technology. Whenever teachers and trainers conducted conventional career education programs on the theme of bicycles, they had some difficulties instructing students because these programs required a certain degree of expertise. Because of this, in 2008 career education was carried out with the two basic themes of “environment” and “town development.” We selected “environment” as a theme that children could easily work with on their own, alongside the backdrop of increasing environmental awareness in society at large. We offered a program designed for children to consider what they can do for the environmental issues around them, introducing Shimano’s environmental conservation activities (cleaning and reed-cutting activities) along the Yamatogawa River as an example. Concerning “town development,” a program was implemented to encourage children to consider the ideal state of their hometown, Sakai, after learning about examples of town development projects such as a new bicycle rental system implemented in Paris and Barcelona. Respective schools also selected various themes according to their own interests. These themes were wide-ranging, from the “environment of local school districts,” “environment in all of Sakai City,” and “town development making use of bicycles in Sakai.” Students present their ideas on the contest theme in class Social Activities in 2008 Building Confidence Meanwhile, taking over the results of our career education efforts up to 2007, we organized a picture contest “The Kind of Bicycle We’ve Always Wanted,” as a new event at the Bicycle Museum, inviting public participation. We invited designs of a “bicycle that can carry two infants safely” from students, as an attempt to provide children with an opportunity to enhance their thinking and problemsolving abilities. Students developed their ideas through interactive discussions with others in their classes. So far, 487 students have submitted designs. Since 2008 was the first year of the contest, our process was still trial and error. We understand that many things can be improved to organize the contest with the desired effects and to make fair judgments. While improving the contest management, we will strive to share the results obtained by career education in Sakai with children throughout Japan. 21 Cooperation in local traffic safety campaign (overseas) Teaching children traffic rules to develop a town in harmony with bicycles 22 In Singapore, one of the countries in which Shimano is located, bicycles have attracted people’s attention as a transportation means beneficial both for health and the environment. On the other hand, the number of bicycle accidents has been on the rise. In June 2008, Shimano Singapore cooperated in the kick-off event of Road Safety Outreach (organized by the Singapore Traffic Police), a campaign to teach students about traffic rules. Event participants enjoyed 15 km cycling, riding bicycles offered by supporting manufacturers. Shimano offered support by tuning up bicycles and ensuring safe group riding. After finishing the course, a traffic safety quiz was held for about 700 people to increase knowledge of and interest in traffic safety. A wide range of people participate in the traffic safety quiz. Shimano staff member assembling and turning up a bicycle provided by a supporting company. Promoting the Sakai Citizens’ Group for Building a Bicycle-Friendly City Shimano supports the Sakai Citizens’ Group for Building a BicycleFriendly City, a civic group working with the government of Sakai City, where Shimano headquarters is located. We have helped the organization promote “Correct, pleasant and beautiful use of bicycle” for the town building of Sakai, by creating a cycling map, regularly holding a free maintenance service event, implementing public relations activities at shopping malls and ward residents’ festivals. Ongoing for 10 years Creating a cycling map by actually pedaling the routes Sakai Bicycle Day, held on a regular basis Technical support for cycling events worldwide Shimano dispatches technical support cars nationwide Shimano dispatches technical support cars mainly to cycling events with many beginners participating, in addition to top-level races. In 2008, our technical support providers served 85 total days for cycling events in Japan. We offer technical support for wide-ranging events, from professional races to amateur cycling events, in Japan as well as overseas wherever Shimano does business. Tour de Shimonoseki (Yamaguchi Prefecture) Shimano Bikers Festival organized by Shimano Shanghai (Beijing) Grand Raid Cristalp Race (Switzerland) 23 Social Activities in 2008 Building Confidence Technical Support car Its primary goal is to ensure participants can enjoy a trouble-free cycling event. (Suzuka Circuit, Mie Prefecture) Shimano Products donated to Osaka Science Museum as exhibits The Osaka Science Museum reopened to the public with new displays in July 2008. In one of the renovated exhibit areas, the “Chemistry around us” section introduces a variety of everyday products and how they are made from minerals and other raw materials. We donated various Shimano products and a racing bicycle incorporating Shimano components as examples of metal products. These items are on display in the exhibition room on the third floor. Dura-Ace on exhibit Supporting the “DANKAI” challenge Cycling tour to meet with friends worldwide again Mr. Motomitsu Ikemoto Japan Adventure Cyclist Club 24 Mr. Ikemoto is a pioneering adventure cyclist who about 40 years ago rode his bicycle around the world through 53 countries on a 50,000 km trip. In June 2007, he embarked on a new tour around the world on his beloved bicycle “DANKAI” (which means the baby-boom generation in Japanese) to visit those who took care of him on his past tours. Departing from Taiwan, he cycled to the United States, Mexico, and then to South America. He is scheduled to visit Australia in the winter of 2009. Shimano is backing his challenging tour on “DANKAI” by offering technical support. * Mr. Ikemoto’s beloved bicycle “Taruze,” on which he toured around the world about 40 years ago, is on permanent display at the Bicycle Museum. Mr. Ikemoto in Chili during his 3rd expedition Shimano also supported Mr. Ikemoto on his 4-year round-the-world trip that began in 1968. Support for Flying Doctor fundraising tour (overseas) The Royal Flying Doctor Service of Australia provides aeromedical emergency and primary health care services to people who live, work and travel in remote regions of Australia. Annually 250,000 people use this service, which is now absolutely necessary for residents in remote areas. This charitable service is operated by a non-profit organization and supported by donations and government subsidies. In 2008, three young men cycled four months across Australia, from Perth on the west coast to Sydney on the east coast, collecting donations along the way for the service. The three-man team eventually raised 17,000 AUD for the Royal Flying Doctor Service, far surpassing the original target of 10,000 AUD. Shimano Australia was a proud sponsor of their fundraising trip. Money donated for Great Sichuan Earthquake victims in China (overseas) To help relieve victims of the great earthquake that struck Sichuan Province, China in May 2008, Shimano’s head office and four Shimano affiliates in China donated a total of about 38 million yen, through the Japanese Red Cross Society and the Red Cross Society of China. We wish to extend our deepest sympathies and condolences to the earthquake victims. Participation in charity auction for childhood cancer research (overseas) The family of Gerrie Knetemann, a Dutch road bicycle racer who died in 2004, donated his beloved bicycles for sale at a charity auction to benefit childhood cancer research. In support, Shimano Europe made a successful bid for one of these bicycles. 25 Social Activities in 2008 Building Confidence Team Shimano Performance Data Finances Change in profit (consolidated) x 100 million Yen 450 2,351 2,118 400 350 300 250 1,458 218.51 195.79 200 144.26 150 1,340 1,326 1,255 50 0 1998 67.44 1999 122.49 80.64 Operating Income 2001 2002 Net Income Sales 2003 300 251.50048 252.76 193.01019 171.77 153.50 2004 2005 209 198.94161 137.73195 205.96 262.14 200 208.54 137.39 2006 2007 2008 2009 Schedule Net Income per Share Treasury stock acquisition performance & No. of shares of common stock issued and outstanding [Mil. Shares] 50 (%) [Mil. Shares] 140 45 14 40 12 130 35 10 30 8 25 6 20 120 110 15 4 26 313.36 97.16 Change in consolidated ROA/ROE 16 1,703 1,679 60.12 41.53 2000 (12months) 1,692 293 162.68043 112.66 56.53 94.18 192.99 182.55 130.98 103.22 1,347 175.66 92.33 100 1,436 2,050 378.19 10 2 100 5 0 0 97 98 99 ROE 00 01 02 03 04 05 06 07 08 98 ROA Change in consolidated total assets & Consolidated shareholders’ equity 99 00 01 Annual Acquisition 02 03 04 05 Accumulated Acquisition 06 90 07 08 Common Stock issued Dividend per share [Mil. Yen] [Yen] 220000 200000 1 70.00 0.95 60.00 0.9 180000 0.85 0.8 160000 0.75 140000 0.7 120000 100000 97 98 99 Total Assets 00 01 02 03 04 Shareholders' equity 05 06 07 Equity Ratio 08 61 50.00 41 40.00 31 30.00 20.00 0.65 10.00 0.6 0.00 26.25 13.75 15 15 97 98 99 00 35 25 15 15 01 02 19 03 04 05 06 07 08 Social activities Numbers of participants in various cycling events Shimano sponsors many events in which people can enjoy experiencing the pleasure of cycling. Among them is the Shimano Suzuka Road race, which has been held for 25 years. The numbers of event categories and venues are expanding year by year, exemplified by the Biker’s Festival in China that commenced in 2003 (participant data available from 2005). (participants) 22,500 17,500 12,500 * The Shimano Motegi Road race was discontinued in 2007. 7,500 2,500 99 00 01 02 03 04 05 06 07 08 Shimano Biker's Festival (China) Shimano Motegi Road race Shimano Biker's Festival Shimano Suzuka Road race Participation in regional environmental conservation activities Shimano regularly conducts environmental conservation activities, mainly a program to clean up the Yamato River that runs through the region where Shimano is located, and whose water quality was once the worst in Japan. More and more Shimano staff members and their families participate in these programs, seeing the activities as great opportunities to consider the importance of the natural environment around them. (participants) 600 400 200 * In 2008, reed cutting along the Yamato River was canceled due to snowfall. Since the opening of the Bicycle Museum in 1992, Shimano has held a painting contest to invite pictures drawn by elementary school students and preschool-age children on various themes such as “Dream Bicycle” and “Scenery with People and Bicycles.” We also continue many other approaches including free admission for children who draw pictures in the museum, and exhibits of bicycles at neighborhood shopping malls as motifs for children’s pictures. As a result, the number of children entering the contest again exceeded 30,000, as in the previous year. 04 05 06 07 08 Yamato River reed cutting (winter) Yamato River cleanup (fall) Sennan Satoumi Park cleanup (fall) Yamato River cleanup (spring) (participants) 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 99 00 01 02 03 04 05 06 07 08 Team Shimano Performance Data Number of people participating in the Painting Competition for Children 27 0 Some Thoughts about the Social Activity Report 2008 In the midst of the global recession, Shimano introduced the keywords “continue” and “steady” in the President’s message at the beginning of this Social Activity Report 2008. These keywords serve as the Company’s evaluation criteria. Under the severe business environment we are in now, corporate business continuity and its relationship with social sustainability have come under review. Business continuity was once defined as the primary goal of corporate management by Peter Ferdinand Drucker, widely esteemed in Japan. Companies need to consider how business continuity relates to society both synergistically and recursively, and consider how to clarify the meaning of the company’s existence. Shimano performs its duty to fulfill basic corporate social responsibility through consistent development (model changes, etc.) of bicycle components and fishing tackle. In doing so, Shimano has gained support from users worldwide and won numerous international awards, steadily increasing its achievements in the market. Moreover, Shimano has newly inaugurated its Lifestyle Gear Division, starting a bricolage business (making creative and resourceful use of whatever materials are at hand). Shimano will “continue” its “steady” efforts in finding and solving everyday problems, so as to create new value wherever it can. To enhance corporate governance, Shimano newly set up an Internal Control Promotion Office. Taking two years, Shimano established the company-wide system on its own initiative, expanding the scope of IT control and management to include subsidiaries/affiliates in Japan and overseas. Team Shimano has now incorporated an internal system that is not theoretical but its own practical system. This point will be highly evaluated in the market. In the future, I recommend that Shimano give consideration to the stakeholders’ interest balance from both non-financial and external perspectives, to earn even greater trust from society and the market. Aiming to reduce environmental impacts, Shimano revised its Green Plan to version 6, and has implemented the revised plan. The revision was triggered by a nonconformity discovered in a cycling glove in November 2007. It was not a nonconformity according to standards required by Japanese laws and regulations, but was a nonconformity according to Shimano’s own standards. By disclosing this fact and quickly corrected the nonconformity, Shimano proved it has implemented its reporting principles in a correct and faithful manner. In this regard, I wish to recognize the Company’s fair approach to confidence-building. I am also made aware that Shimano is very serious about compliance since this revision focuses not on tightening existing standards but on complying with them, further requiring partner companies to also ensure strict compliance as part of appropriate supply chain management. 28 As for employee training, my impression is that Shimano’s curricula are designed based on the ideas of “emergent education.” For example, the Company conducts experience-based group training sessions and programs where trainees learn various skills from senior workers with long careers. Based on today’s concepts and methods, Shimano is nurturing personnel who will play leading roles in the future. It can be said that the Company is investing in human resource development to “continue” its business. Some Thoughts about the Social Activity Report 2008 Moreover, Shimano’s contribution toward establishing a sustainable society in the future is well exemplified by the fact that the Company has carried out many programs for educating the next generation. These include Career Education Projects at schools, and the Painting Competition for Children at the Bicycle Museum. Along with captivating products, Shimano offers captivating experiences by organizing various sporting events, including the Shimano Suzuka Road race, imparting joy to people around the world. I believe that such Shimano products and events have together created corporate value, which also lends a sense of greater reliability to the global Shimano brand. There is an increasing social interest in conserving natural resources such as fossil fuels, and in human health and safety. This is a natural benefit for Shimano, which pursues harmony between people and nature. I also expect Shimano’s future initiatives to include coping with new CSR challenges such as employment diversification, life-work balance, and ecosystem preservation. In closing, this report clearly illustrates Shimano’s concept to “continue” its “steady” activities. I hope that global Team Shimano will continue working on socially responsible management that enables the Company to evolve together with society and the environment, seeing the present difficult business climate as an opportunity for a new paradigm shift. Toshihiko Fujie Professor, Chiba University of Commerce Graduate School of Chiba University of Commerce The Team Shimano Philosophy Shimano conducts business activities all over the world with 36 bases in 22 countries and regions. Adhering to common principles, we at Shimano organize all of our staff around the world as “Team Shimano” to engage in activities with common goals and a common process. [Mission Statement] To promote health and happiness through the enjoyment of nature and the world around us. [Business Policy] • We strive to provide quality products and services that are reliable and trustworthy. • We pledge to continually increase our corporate value and to ensure corporate management worthy of the trust placed in us. 29 • We strive to provide a fair and vibrant work environment where all can share in the pleasure and satisfaction that comes • We pledge to be a good corporate citizen, by preserving the environment and contributing to the prosperity of our community. [Team Shimano Guiding Principles] • To inspire ourselves to think creatively and to strive for continuous self-improvement. • To continually improve our technical skills in order to meet the challenges of our dreams. • To achieve our objectives through innovation and responsiveness to the challenges we face. The Team Shimano Philosophy with achievement.