P010-0607B

Shimadzu
Integrated Report 2022
Year Ended March 2022

Contributing to
Society through
Science and
Technology
 Editorial Policy
The Shimadzu Integrated Report 2022 is a summary of corporate strategies, business activities, and financial
and non-financial information, which is provided to help stakeholders better understand the measures being
implemented to increase the Shimadzu Group’ s medium- and long-term corporate value. The report is
revised whenever necessary, not only to maintain a dialogue with stakeholders, but also as a basis for
accommodating their valuable opinions and requests to the extent possible.

Financial Information Non-Financial Information

Information for investors Sustainability

Web https://www.shimadzu.com/ir/index.html Web https://www.shimadzu.com/sustainability/
index.html

Please refer to our company website listed above for the latest information.
Shi P010-0607B
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Int
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Shimadzu
Integrated Report 2022

Shimadzu Integrated Report

Year Ended March 2022

財務情報 2022 非財務情報

Contributing to
Society through
Science and
Technology

Earnings reports and financial position

presentation documents

Fact Book Reports related to corporate governance

Marketable securities reports

Publishing Dates Published in September 2022 (Revised in April 2023)

Reporting Periods From April 1, 2021 to March 31, 2022
(Also includes certain important information for periods other than indicated to the above.)
Reporting Organizations Shimadzu Corporation and Shimadzu Group companies
Disclosure Policy This report is provided in an effort to disclose information in a timely manner,
in accordance with the Disclosure Policy specified by Shimadzu.
For more details, refer to the website.
https://www.shimadzu.com/sustainability/approach/stake_holder/disclosure.html 

Notes about Future Prospects

The business plans, strategies, and forecasts stated in this report are based on currently available information and are subject to risks and uncertainties.
Please note that actual results may differ substantially from projected results, due to changes in economic conditions, market trends, or other factors.

Recognition from Outside Shimadzu

Shimadzu Corporation is Shimadzu Corporation is Shimadzu Corporation has For the seventh consecutive For the third consecutive Shimadzu Corporation is
included in the JPX-Nikkei included in theS&P/JPX been selected for inclusion in year, Shimadzu Corporation year, Shimadzu Corporation included in the Diversity
Index 400, which was started Carbon Efficient Index, which the MSCI Japan ESG Select has been recognized jointly has been selected by the Management Selection 100
by the Japan Exchange is an indicator for selecting Leaders Index and MSCI by the Japanese Ministry of Japanese Ministry of list, which is a list of
Group (JPX), Tokyo Stock companies with low carbon Japan Empowering Women Economy, Trade and Industry Economy, Trade and Industry companies selected by the
Exchange, and Nikkei in 2014 emission levels per net sales Index (WIN), which are used and the Nippon Kenko Kaigi and the Tokyo Stock Japanese Ministry of
for the purpose of selecting and that disclose sufficient as indicators for evaluation as a“White 500”company, Exchange as a“Health and Economy, Trade and Industry
companies that satisfy the information about carbon by the Government Pension which recognizes large Productivity Management to publicize advanced
various conditions required by emission quantities. The Investment Fund (GPIF). corporations with outstanding Brand,”based on employee measures by companies that
global investment standards. index is also used for health and productivity health management use diversity to achieve
evaluation by the management practices. practices implemented better management results.
Government Pension strategically from a
Investment Fund (GPIF). management perspective.

1 Shimadzu Integrated Report 2022

 Contents

3
Message from the President
9
Contributing to Society through
Science and Technology

41
Business Overview and
57
Sustainability Management
Results

Message from the President 37 Standardization Strategy 73 Health Management

3 Message from the President 39 Message from the CSO 75 Message from the Director in Charge of
(Chief Standardization Officer) Human Resources
Contributing to Society through Science
77 Customer Satisfaction (CS)
and Technology Business Overview and Results
79 Supply Chain Management
Story of Creating Value 41 Business Overview
81 Working with Stakeholders in
9 Shimadzu’
s Values 43 Analytical & Measuring Instruments
the Community
Business
11 History of Creating Value Governance Report (G)
49 Medical Systems Business
13 Cultivated Strengths
83 Policy on Corporate Governance
15 Value Creation Process 51 Industrial Machinery Business
98 Strengthening Compliance and Building a
Medium-Term Management Plan 53 Aircraft Equipment Business
Risk Management System
17 Medium-Term Management Plan Financial and Non-Financial Highlights 102 Crisis management against natural
19 Promoting Infectious Disease 55 Financial and Non-Financial Highlights disasters, etc.
Countermeasure Projects
Sustainability Management Financial and Corporate Information
21 Advanced Healthcare
57 Establishing the Shimadzu Group 103 Key Financial and Non-Financial Data
23 Contributing to Development of over the Past 11 Years
Sustainability Charter and Identifying
Alternative Energies and Transition to
Important Issues (Materialities) 105 Financial Statements
Carbon-Free Society
Environmental Report (E) 107 Corporate Profile/Stock Information
25 Message from the CFO
59 Shimadzu is Engaged in Solving Various 108 Information about Group Companies
Pursuit of Science and Technology
Environmental Challenges in an Effort to
27 Initiatives to Achieve Advancements in Achieve Development and Growth for a
Science and Technology Sustainable Society
33 Strengthening Intellectual Social Report (S)
Property Strategies
69 Investment in Human Resources
35 Message from the CTO
71 Diversity and Inclusion

Shimadzu Participation in Key Initiatives

For the sixth consecutive year, Shimadzu Corporation In September 2019, Shimadzu Corporation In October 2022, the In March 2021, Shimadzu
Shimadzu Corporation has been has been certified by the Shimadzu Corporation endorses the Shimadzu Group’ s FY2030 Corporation joined the
selected as a Nadeshiko Brand for its Eco-First Program became a signatory to the recommendations of the CO2 emissions redution RE100 global initiative and
excellence in promoting the advancement established by the Ministry United Nations Global Task Force on Climate- target levels were certified by declared a commitment to
of women. Every year, the Ministry of of Environment as an Compact (UNGC) proposed related Financial Disclosures the Science Based Targets use 100% renewable
Economy, Trade and Industry and the Eco-First Company, in by the United Nations and (TCFD) and is a participant (SBT) initiative as having a energy for all worldwide
Tokyo Stock Exchange select companies recognition of Shimadzu’ s became a member of Global in the TCFD Consortium. valid scientific basis. Shimadzu Group business
from all listed companies to actively environmental Compact Network Japan, activities by 2050.
promote the advancement of women in conservation measures. the local UNGC network in
each industry. Japan.

The following web page includes information about the topics listed below.
https://www.shimadzu.com/sustainability/evaluation.html#06
Current Initiative Participation by Shimadzu

Shimadzu Integrated Report 2022 2

 Message from the President

Yasunori
Yamamoto
June 2022
Representative Director,
President & CEO

3
 Message from Contributing to Society through Business Overview Financial and Sustainability Financial and 　
the President Science and Technology and Results Non-Financial Highlights Management Corporate Information

Achieving a“Society Brimming with Empathy”

-Best For Our Customers-

Achieving a“Society Brimming with Empathy”with All our Stakeholders

On April 1, 2022, I was appointed the 13th President but we can accomplish amazing things by working
and CEO of Shimadzu Corporation. together, even traveling to the moon. Healthcare,
Since assuming my new position, I have taken a hard medicines, trains, automobiles, computers, smartphones,
look at myself and Shimadzu Corporation to carefully and almost everything else created by man originally started
consider what the company should become and how with someone’ s dream and was completed through the
Shimadzu can contribute to all of you, our stakeholders. efforts of those who wanted to make it a reality.
In addition to the COVID-19 pandemic and climate Shimadzu should follow a path of generating business
change, countless other challenges such as supply chain by combining our dreams with the dreams of customers
and logistical disruptions have resulted in dramatic and then nurturing them together. That means business is
changes in people’ s sense of values and the kinds of cultivated by building relationships of mutual trust between
challenges facing society. It is unclear how the Earth and the company and employees, customers, and stakeholders.
society will change in the future, but I am convinced that I believe that my mission is to provide an environment
the preciousness of human life and health and the need where both customers and employees can fulfill their dreams.
to protect our planet will become ever more important. I By working together with all stakeholders, we can create a
also believe deeply that the way forward for Shimadzu is company that continues to move toward achieving a
through our company philosophy,“Contributing to “society brimming with empathy.”I want to work with all of
Society through Science and Technology.” you to move steadily, step by step, and achieve that goal.
One person working alone can achieve almost nothing,

Medium-Term Management Plan

Following our strong performance last year, which broke well. Nevertheless, issues have appeared for some
previous records, the results for FY 2021, the second year businesses and capital equipment investments have been
of the current medium-term management plan, are also delayed due to the pandemic. This has also caused the
expected to be strong. Sales of our mainstay products, development of certain products to be delayed due to
such as liquid chromatographs, mass spectrometers, and difficulties in obtaining parts. During FY 2022, the last year
turbomolecular pumps, are achieving significant growth of the medium-term management plan, we will implement
despite the major changes in society. Sales of pandemic- measures to resolve such issues and prepare for the next
and climate change-related products are also performing medium-term management plan.

Shimadzu Integrated Report 2022 4

 Message from the President

Fighting Infectious Diseases

The COVID-19 virus continued to spread during 2021 networked systems for managing test data, and
and has had a serious impact on society. Shimadzu monitoring the presence of viruses in sewerage. In
Group also continued to experience challenges in our particular, we established AdvanSentinel, a joint venture
business activities and working practices. Meanwhile, for monitoring viruses in sewerage, in partnership with
the novel coronavirus detection kits released in April Shionogi & Co., Ltd. AdvanSentinel has now started
2020 immediately after Japan declared its first state of monitoring sewer water in an effort to contribute to
emergency, the DNA sequencer automatic PCR testing understanding the status of COVID-19 infection and also
system released in November 2020 for clinics, and to understanding other infections and public health risks.
the mobile X-ray systems, which can be moved to a We also think that automatic PCR testing systems
patient’s bedside for pneumonia examinations, are all represent a major opportunity for fighting infectious
being used to test for infections and have contributed to diseases in the future. Once the capability to quickly test
treatment and prevention of the spread of the virus. patients at clinics can be established nationwide,
In addition to supplying products, we have also been a system for rapidly identifying those infected and
focusing efforts on cooperating with the government, implementing countermeasures can be established to
universities, hospitals, healthcare institutions, and control the spread of other infectious diseases. To that
companies to develop infectious disease countermeasure end, we will continue to develop reagents for infectious
systems. Our efforts have already achieved some diseases other than COVID-19 and devise ways to test
success in providing support for establishing PCR people more easily.
testing centers at universities and companies, building

Sustainability of Society and Shimadzu

Our goal at Shimadzu is to create a bright future based Asia, which were experiencing problems with water pollution
on a two-pronged approach of“solving challenges in at the time, to train analytical technicians and provide
society through business operations”and“engaging in instruments. Even now, we continue to provide support for
responsible activities as a member of society”while achieving sustainability, such as by working with experts to
conducting these activities in harmony with the Earth, diagnose, treat, and measure health issues in healthcare
society, and mankind. institutions, developing instruments to support new drug
For 147 years since Shimadzu was founded, development, as well as many devices used to ensure a
the company has continued to do business based on safe and secure society.
the corporate philosophy“Contributing to Society through In recent years, there has been a growing demand for
Science and Technology.”In 1992, Shimadzu adopted the sustainability management, but that is already consistent
management principle“Realizing Our Wishes for with Shimadzu’ s management principle and has further
the Well-being of Mankind and the Earth”and outlined strengthened our commitment to continue in this business.
specific areas where Shimadzu would operate to support Shimadzu’ s efforts in advanced healthcare, green
the corporate philosophy. As a result, we partnered with innovation, and industrial development are also consistent
academic and research institutions in China and Southeast with SDGs.

5 Shimadzu Integrated Report 2022

 Message from Contributing to Society through Business Overview Financial and Sustainability Financial and 　
the President Science and Technology and Results Non-Financial Highlights Management Corporate Information

Therefore, by implementing sustainability management, and society. In terms of business, we will increase our
we will follow up on the specified KPIs and make sensitivity to uncover societal challenges and accelerate
improvements to achieve sustained growth for Shimadzu measures to solve them.

Contributing to the“Well-being of Mankind” Advanced Healthcare

With regard to contributing to the“well-being of mankind,” of blood and even engage in understanding how human
we will promote the advanced healthcare business and emotions and the brain function. In the long term, we will
implement infectious disease countermeasure projects, contribute to establishing personalized treatment or
areas that were identified as urgent priorities in the preventive methods optimized to an individual’ s genomic
medium-term management plan. information in an effort to achieve a society where all people
We will continue to invest resources in the healthcare can live physically and mentally healthy lives.
field. Given the continuing increase in elderly populations One milestone we are working urgently to achieve is the
around the world and the decrease in contacts they have integration of analytical instrument technologies with
with other people, protecting mental health will also be a medical systems. Shimadzu Group’ s medical systems are
major challenge. The number of people worried about based on using images to detect abnormalities in the body.
either their mental or physical health is expected to By combining our visualization technologies with
increase. Meanwhile, even for diseases that are difficult the analytical instruments used for blood, urine, or other
to treat after onset, it may be possible to maintain good screening tests, pre-disease markers can be identified
health if signs are identified early and preventive measures more efficiently. We have already begun achieving some
are taken before the disease develops. We will also work success in the ultra-early diagnosis of Alzheimer’ s
to enable ultra-early diagnosis of dementia, lifestyle disease, and we intend to accelerate this in the future.
diseases, cancers, and other disorders from a few drops

Contributing to the“Well-being of the Earth” Green Innovation

We will also invest effort in the area of carbon neutrality, to combat climate change. Therefore, technology not only
which is gaining a lot of attention. We are already working for reducing CO2 emission levels but also for sequestering
to support decarbonization, such as by offering many testing and reusing CO2 in the atmosphere is required. Technology
machines that contribute to weight reduction in automobiles for reusing CO2 from the atmosphere to manufacture raw
and instruments used to evaluate batteries for electric materials for fuels and plastics by artificial photosynthesis
vehicles. Furthermore, we have been steadily making or using microorganisms is already being developed
preparations for fossil-free fuels, such as by offering throughout the world, with many successes already
quality control solutions for hydrogen and biofuels. reported. Shimadzu Group has been participating in such
However, considering projected population increases, efforts with our analysis, measurement, and plant control
even if future CO2 emissions can be reduced through the technologies, contributing to carbon recycling and taking
widespread use of green energies, it would not be enough on the challenge of building a plant that reuses CO2.

Shimadzu Integrated Report 2022 6

 Message from the President

Building Global Capabilities

I am proud that one major strength of Shimadzu is our Currently, Shimadzu Group’ s engineers in Japan provide
ability to listen to what customers need and then backup support on request, but in the future we would
respond to those needs quickly and in a detailed way. like to build capabilities to develop software and
For customers in Japan, we are increasing the number accessories locally.
of open innovation centers and accelerating measures to At the same time, we are reviewing our governance
respond to customer needs more quickly and in greater practices at subsidiaries outside Japan. Markets outside
detail. However, we have not reached that level of support Japan already account for 70 to 80 percent of sales for
for customers outside Japan, and I see this as an our analytical and measuring instruments, making our
urgent issue. subsidiaries outside Japan more important than ever.
Starting from the time Chairman Ueda was President Due to the differing needs and business conditions in
and CEO, we have been working to establish innovation each region, these subsidiaries need to be able to make
centers in various regions of the world. The aim of these decisions and implement them quickly, within the bounds
centers is to achieve business growth by strengthening of Shimadzu Group policies rather than having to seek a
local operation functions and working with business decision from the Head Office for each and every issue.
partners to solve problems unique to each region. The To establish such governance systems, we are assessing
centers have also created many opportunities for direct the scope of empowerment and establishing a framework
dialog with leading researchers in each region. and rules.

Reforming Corporate Culture and Fostering Human Resources

People, in other words our employees, are the most challenges together with customers who agree with the
important foundation for the management of the importance of those ideas.
Shimadzu Group. During periods of rapid change, such There are two main challenges in human resource
as today, the ideal situation is one in which employees development. One is developing executive management
empathize with management, understanding and sharing candidates. The other is developing human resources
their policies and acting autonomously. Given that most with a broad view of the world. I think we are no longer in
Shimadzu employees are sincere and kind, they tend to an era where potential executive management candidates
respond thoroughly to each customer inquiry. Shimadzu are selected based on conventional employee review
employees also tend to value harmony, which results in processes. Employees should be given as many
a high degree of cohesiveness but also leaves many opportunities as possible and then assessed based on
individuals hesitant to express their own views or assert how successfully they perform in those contexts.
themselves. In today’ s world, where a sense of urgency Therefore, to put that approach into concrete practice,
is required, there are many times when being assertive is we intend to introduce an open job-posting system.
appropriate. I believe my main mission as President is to We intend to decide on a project leader and then invite
nurture a culture of anticipating the future, where employees employees who want to participate in the project or are
act proactively to sensitively identify challenges in society, otherwise interested, to apply. Even personnel from a
propose their ideas to customers, and work to overcome different division can apply. Breaking down organizational

7 Shimadzu Integrated Report 2022

 Message from Contributing to Society through Business Overview Financial and Sustainability Financial and 　
the President Science and Technology and Results Non-Financial Highlights Management Corporate Information

boundaries within the company and bringing together different culture, environment, or job by identifying
interested individuals to work on new projects will lead to employees eager to experience working outside Japan,
the growth of both the individual and Shimadzu. The same conducting in-depth research at a university, or working in
principle applies to developing human resources with a manufacturing. I am confident that exposing people to
wide view of the world. We intend to actively promote diversity from a young age will plant the seeds of new
employees who want to gain experience working in a self-discovery and innovation.

Words and Interactions

As is generally known, there are four types of forces in and“thinking beings,”we are always feeling and thinking
nature: gravitational, electromagnetic, strong, and weak about something. Both emotions and thoughts are
forces. All of these are made possible by the exchanging communicated through the exchange of these particles
of particles that transmit forces. Although different or“words”to evoke empathy and create something new
particles are exchanged for each type of force and result through the resulting“interactions.”I believe personal
in completely different magnitudes and other phenomena, growth is also created through such interactions.
all the forces are transmitted by the same method. In Therefore, I have resolved to help achieve a“society
physics, these forces are referred to as interactions and brimming with empathy”by actively engaging in dialogue
result in everything we experience in nature. with others, not only within Shimadzu, of course, but also
After becoming part of management at Shimadzu, in collaboration with our partners, customers, and
I often think back to such interactions in the natural world stakeholders, through mutual interaction.
that I learned about as a student.“People interact in a Please look forward to more great things coming from
similar way, except that people need to use“words”to Shimadzu in the future.
interact rather than“particles.”As emotional creatures

Shimadzu Integrated Report 2022 8

 Story of Creating Value

Shimadzu’
s Values

Corporate Philosophy

Contributing to Society through

Science and Technology

Management Principle

Realizing Our Wishes for the Well-being of

Mankind and the Earth

Shimadzu Group Sustainability Charter

Medium-Term Management Plan

Industrial
Human health development
Safety and
security of
society

Business Areas

9 Shimadzu Integrated Report 2022

Message from Contributing to Society through Business Overview Financial and Sustainability Financial and 　
the President Science and Technology and Results Non-Financial Highlights Management Corporate Information

Ever since Shimadzu was established in 1875 based on the corporate

philosophy“Contributing to Society through Science and Technology”and
management principle“Realizing Our Wishes for the Well-being of Mankind
and the Earth,”we have used the technologies and expertise cultivated
through business activities to earn the trust of customers, shareholders,
suppliers, employees, local community members, and other stakeholders by
diligently striving to achieve sustainable growth and progress for businesses
and society.

Furthermore, in an effort to achieve a sustainable society through our

business activities based on Shimadzu’ s corporate philosophy and
management principle, we recently established a Shimadzu Group
Sustainability Charter in 2021 and decided to engage the entire
Shimadzu Group in three topics: contributing to the“well-being of
mankind and the Earth,”contributing to industry and society, and
ensuring corporate governance.

In the future as well, Shimadzu remains committed to achieving a sustainable

society by working with partners around the world to take on the challenge of
solving challenges of society globally in an effort to create a bright future and
build corporate value.

Shimadzu Group Sustainability Charter

Create a Bright Future
SHIMADZU CORPORATION will engage in company activities and fulfill social
responsibilities based on two principles—“solve the challenges of society through
business operations”and“engage in activities as a responsible member of society”—
while working towards harmony between the earth, society, and people.

https://www.shimadzu.com/sustainability/concept/index.html

Shimadzu Integrated Report 2022 10

 Story of Creating Value

History of Creating Value

Continuously Challenging ourselves to Achieve a Sustainable
Society through Science and Technology
Shimadzu has continued to grow and develop by constantly satisfying the challenges faced by customers
and solving the challenges of society that underlie those customer challenges.
In the future as well, we will continue to strive toward achieving a sustainable society by using science and
technology to solve challenges of society through Shimadzu business activities.

First in
the world

1961
Reduction of Radiation
Exposure

1896 Developed a remote-controlled

X-ray fluoroscopy system
First in Early Radiograph
Japan
1877 Successfully produced X-ray photographs

Challenge of Starting from Zero

Successfully launched the first
manned balloon flight in Japan

1967
Improved Automobile Safety
First in Manufactured our first fatigue testing
Japan machine, which was delivered to an
1909 automobile manufacturer

Advancement and Widespread

Use of Medical Devices
1882 Completed a medical X-ray device
Widespread Use and
Advancement of Physics and
Chemistry Instruments
Supplied state-of-the-art educational
equipment

Formation First in
of Limited Japan
Company

1957
Advancement of the Petrochemical
Industry
Founded Successfully commercialized a general-
purpose gas chromatograph

1875 1917 1945 1950 1955 1960 1965 1970 1975 1980

Net Sales ※Note: Values are indicated on an unconsolidated basis until FY 1999 and on a consolidated basis from FY 2000.

11 Shimadzu Integrated Report 2022

 Message from Contributing to Society through Business Overview Financial and Sustainability Financial and 　
the President Science and Technology and Results Non-Financial Highlights Management Corporate Information

First in
the world

2021
Offered Support for Diagnosing Brain
First in Tumors, Breast Cancer, and Dementia
the world

2003
Developed a TOF-PET system that enables
both head and breast examinations using the
same system
Improved Healthcare Quality
First in Developed the world’ s first
Japan
cardiovascular diagnostic X-ray
1978 system equipped with a direct-
conversion flat panel detector (FPD)
Safety and Efficacy of
Pharmaceuticals
Completed a modular liquid chro-
matograph (LC) system
2022
Contributed to R&D and Quality
First in Improvement in
Japan Pharmaceutical, Food Safety,
2010 and Chemical Fields

Development of Testing Developed a single quadrupole liquid

Instruments for Clinical chromatograph mass spectrometer
Samples that is compact, easy to use, and
offers high basic performance
Developed Japan’ s first triple
1985 quadrupole high-performance
liquid chromatograph mass
Improved Semiconductor spectrometer
Manufacturing Productivity
Completed a magnetically levitated
turbomolecular pump.
It was even adopted by the world’s
largest semiconductor manufacturing
2022
equipment manufacturer, expanding Contributed to
Shimadzu’ s market share throughout Development of
the world.
Biopharmaceuticals and
Nucleic Acid Medicines
Developed a liquid chromatograph
2020 for biopharmaceuticals and
medium-molecule drugs
Preventing the Spread of the (Billion yen)
2002 COVID-19 Pandemic
Developed a fully automatic real-time
450

Koichi Tanaka Awarded the PCR testing system and novel

Nobel Prize in Chemistry 400
coronavirus detection kits

350

300

250

200

150

100

50

1985 1990 1995 2000 2005 2010 2015 2021 (FY)

Shimadzu Integrated Report 2022 12

 Story of Creating Value

Cultivated Strengths
Throughout the 147 years since Shimadzu was founded in 1875, we have remained committed to solving the
challenges faced by customers and the challenges of society, while facing facts with sincerity to discern their
true essence, based on Shimadzu’ s corporate philosophy“Contributing to Society through Science and
Technology”and management principle“Realizing Our Wishes for the Well-being of Mankind and the Earth.”
That process has resulted in establishing an ecosystem within Shimadzu for satisfying customer needs in a
variety of fields and for developing new technologies, while also expanding the scope of our business
operations with product and technology applications based on even more advanced core technologies.
That approach of solving the challenges faced by customers and the challenges of society by confronting
them head-on has been an unwavering principle that has served throughout our past, and to this day, as the
foundation for the Shimadzu Group corporate culture.

Reasons Shimadzu has Remained Ferrous

Environment
in Business for Over 145 Years Chemicals
metals
Material
Foods Transport
equipment
(1) Despite changing times, Shimadzu remains Materials
testing Industrial Semi-
Environmental machines machinery conductor-
steadfastly committed to the corporate Drug measuring related Electronics
discovery instruments equipment
philosophy“Contributing to Society through Diverse component
Analytical Aircraft
assembly technology
Science and Technology.” Basic
medical
instruments
and precision machining
equipment
and biotech Batteries
technology/equipment (hardware)
research
(2) Even for niche markets, Shimadzu serves Medical
systems Fluidics
Core technologies
the needs of all customers. Clinical
Analytical technologies,
Energy
medicine Shimadzu measuring technologies, Shimadzu resources
Group X-ray technologies, vacuum Group
(3) Shimadzu constantly strives to increase business technologies, etc. business
Prioritizing Appreciating
technology development capabilities for Customer
development of Development of unique Customer
Customer
fields original operating principles/ fields, ideas, and fields
contributing to the advancement and growth technologies techniques is critical creativity

of industry. Culture of Shimadzu Group

1. Steadfast Commitment to Shimadzu Corporate Philosophy

Founder Genzo Shimadzu Sr. engaged in manufacturing physics and chemistry instruments needed during that era, while also learning
about the latest technologies. That resolve to supply what customers need is still carried on to this day in our current commitment for
using science and technology to meet the needs of society and customers and contribute to a more prosperous, safe, and secure
society. Today, science and technology are becoming increasingly important for solving the increasingly diverse and complex
challenges of society. Consequently, we will continue contributing to society by working tirelessly to acquire new knowledge and skills
for providing solutions based on creating new concepts and achievements unimaginable to date.

Founded 1875 From 1945 From 1996 From 2011

Widespread Use and From Post-War Rebuilding Raising Technology Levels Becoming the No. 1 Partner
Advancement in Physics to Business Development to New Heights Selected Globally
and Chemistry Instruments
Genzo Shimadzu Sr. supported During the difficult period after the The Life Science Research Center Innovation Centers were newly
science education in Japan by war, Shimadzu helped support the was established in 2001 based on a established in four locations around
producing educational physics and post-war recovery by producing strategy of focusing management the world. Shimadzu is also investing
chemistry instruments made in Japan products such as coal mining resources in biotechnology and other efforts in developing products that
as an alternative to imported machinery required for increasing high-growth fields. The following year, help solve various problems faced by
products. He also invested effort in production in the critical coal industry, Koichi Tanaka, who was working at society, such as a food radiation
promoting the spread of scientific X-ray systems for medical facilities the center, was awarded the Nobel scanner and a woman-friendly
knowledge throughout Japan, such as throughout Japan, and spinning pumps Prize in Chemistry for developing the dedicated breast PET system.
by launching a manned balloon, and nozzles used in the increasingly soft laser desorption/ionization
distributing physics and chemistry important fiber export industry. method used to analyze the masses
equipment catalogs, and publishing of biological macromolecules.
scientific journals.
Soft Laser Desorption/Ionization Method
M: Sample (protein)
U: UFMP
G: Glycerin
C: Cation
Laser
A: Anion
Vacuum

Analyte Analyte

Sample Plate Sample Plate

Genzo Shimadzu Sr. Remote-Controlled X-Ray Soft Laser Desorption/Ionization Method Shimadzu Tokyo Innovation Plaza
Fluoroscopy System

13 Shimadzu Integrated Report 2022

 Message from Contributing to Society through Business Overview Financial and Sustainability Financial and 　
the President Science and Technology and Results Non-Financial Highlights Management Corporate Information

2. Serving the Needs of All Customers

Based on our corporate culture of earnestly satisfying the needs of customers and society, Shimadzu has created a wide variety of technologies,
products, and services thus far. We will continue to create new shared value for society and Shimadzu, promote human health, ensure the safety
and security of society, and contribute to industrial development by constantly combining new knowledge acquired from open innovation with
our technical capabilities cultivated previously to continue solving challenges of an increasingly global and complex society.

Infectious Disease Healthcare Innovation Life Innovation Green Innovation

Countermeasures
As fighting the COVID-19 pandemic and In an effort to conquer cancer, lifestyle Shimadzu is engaged in generating life For the global transition to carbon-free
other infectious diseases is a major diseases, and other disorders and innovation by searching for diagnostic operations, Shimadzu is engaged in
challenge for society, we are developing achieve a healthy life cycle, Shimadzu biomarkers, providing support for drug generating“green innovation”by
new products in addition to offering our has been promoting“advanced discovery, offering solutions for cell developing technologies for materials
current line of instruments and reagents. healthcare”solutions that combine therapy and regenerative medicine, informatics, the smart cell industry,
We are also actively collaborating with analytical and medical technologies for and developing technologies for sequestering carbon dioxide, and
academia, hospitals, healthcare every stage of healthcare, from routine analysis of functionally beneficial measuring infrastructure deterioration.
institutions, and others to create systems health management, ultra-early components in foods.
for fighting infectious diseases. diagnosis, and diagnosis to treatment
and prognosis.

Novel Coronavirus Detection Kit Amyloid MS CL System for Measuring a Using a Mass Spectrometer for Testing was Started to Verify the Utility
s Disease
Potential Cause of Alzheimer’ Biomarker Discovery of a Prototype Autonomous Lab
System Intended for the Smart Cell
Industry Based on Robotic, Digital, AI,
and Other Technologies

3. Increasing Technology Development Capabilities

Shimadzu is researching and developing core technologies for use in creating revolutionary next-generation products, developing new
products by improving current products and technologies, and developing broadly applicable shared technologies, including AI, IoT, and
robotics technologies. In addition, we are also engaged in developing new businesses and technologies that will be required by society in the
future, by quickly responding to changes or new challenges of society with solutions that combine or improve our technologies and expertise.

Core and Key Technologies Advanced and Highly Original Technologies to Serve as Core Elements for Generating New Value

Advanced Analysis Innovative Biotechnology Brain/Five Senses AI

The aim of advanced analysis is to The aim of innovative biotechnology is We are developing technologies for We will offer solutions for challenges
contribute to solving challenges faced to generate new customer value using measuring a combination of the brain faced by customers and society by
by customers and society by innovative biotechnology for and the five senses using technologies creating advanced products, services,
developing world’ s-first technologies preventive medicine, early diagnosis, for improving human performance or and new businesses through R&D for
related to ions (MS), X-rays, light, regenerative medicine, bioproduction, for supporting mental enhancement. AI-based signal processing and image
quantum physics, or other fields. or other applications. processing technologies.

Basic Product Technologies Base of Technologies for Supporting a Wide Variety of Products

Device Control Design System Integration

In addition to improving the qualitative characteristics of controlling heavy We are engaged in R&D for providing solutions based on core key
components or high-speed rotating parts, for example, control systems are technologies, such as thermal, fluid, and optical technologies.
designed to improve product safety and robustness by reducing vibration/
noise and dampening impacts.

Shimadzu Integrated Report 2022 14

 Story of Creating Value

Value Creation Process

We will promote working with partners around the world to achieve the vision specified in the Shimadzu Group
Sustainability Charter:
Create a Bright Future
SHIMADZU CORPORATION will engage in company activities and fulfill social responsibilities based on two
principles̶“solve the challenges of society through business operations”and“engage in activities as a
responsible member of society”̶while working towards harmony between the Earth, society, and people.

Input Shimadzu Group Businesses

Financial Capital
⿟ Shareholders’capital Challenges of society
359.1 billion yen
⿟ Interest-bearing debt 1.7 billion yen
Challenges faced by customers
⿟ Rating A+（ R＆I ）

Research challenges
Intellectual Capital
⿟ Global R&D facilities 13 locations
(5 in Japan and 8 overseas)

⿟ R&D investment
(total during 3-year medium-term management Strengths ⇒P.13
plan period from FY 2020 to FY 2022) Businesses breaking down challenges of society into specific research topics
51.0 billion yen creates competitive advantages for Shimadzu

Human Capital Technology Broad

Human
development customer
⿟ Total employees 13,499 resources
(5,692 overseas and 7,807 in Japan) capabilities base

⿟ Training expenses per employee

181,000 yen
(non-consolidated)

Business Areas
Business areas where Shimadzu should continue contributing to society through
science and technology based on Shimadzu strengths
Social and Related Capital
⿟ Global sales and service facilities
25 countries and regions
⿟ Joint research with customers,
academia, and others

Safety and security Industrial

Human health
of society development
Manufacturing Capital
⿟ Global manufacturing facilities
13 locations Materiality ⇒P.53 Strategies ⇒P.17
(5 in Japan and 8 overseas)
Sustainability Charter Medium-Term Management Plan
⿟ CAPEX (FY 2020 to FY 2022)
(total during 3-year medium-term management
plan period from FY 2020 to FY 2022) Contributing to the well-being of Become a company that solves
mankind and the Earth
54.9 billion yen challenges in society in collaboration
with partners all around the world
Contributing to industry and society — Creating systems for solving
challenges and promoting
Corporate governance them in society—
Natural Capital
⿟ Energy usage 983,205 GJ*
⿟ Water usage 215,000 m3
Corporate Philosophy and Management Principle
* GJ is a unit of energy (gigajoule).

15 Shimadzu Integrated Report 2022

 Message from Contributing to Society through Business Overview Financial and Sustainability Financial and 　
the President Science and Technology and Results Non-Financial Highlights Management Corporate Information

Achieving our Vision

Output Outcome
Analytical & Measuring Instruments Financial Capital
(FY 2021 results)
⿟ Net sales 428.2 billion yen
Human Health
Supporting longer healthy life
⿟ Operating income expectancy and providing
63.8 billion yen appropriate healthcare, etc.
・Contributing with diagnoses and
⿟ Operating margin 14.9 %
LCMS-8060NX examinations for clinical and infectious
Liquid Chromatograph Mass Spectrometer System disease countermeasure applications
・Contributing by providing support for
Intellectual Capital drug development
⿟ Number of patents held ・Contributing by providing support for
food development
6,776
(+5.5% year on year)

Human Capital
Advanced i-Series Integrated Liquid Chromatograph
⿟ Average number of years
employed 18.3
Medical Systems Safety and Security
⿟ Employee turnover 0.99 % of Society
(non-consolidated)
Conserving the natural
environment, analyzing food
Social and Related Capital safety, maintaining public
infrastructure, etc.
⿟ Offering products and
・Diagnosing aging infrastructure
systems that help prevent
・Supplying devices for manufacturing
the spread of infections semiconductors that sustain digital
societies
⿟ Promoting open innovation

Trinias Angiography System

Manufacturing Capital Applicable
⿟ Manufacturing high-quality to all
Industrial Machinery
products
⿟ Engaging in cost-reduction
activities
(cost ratio improved 2 pts year on
year to 58.3%) Industrial Development
Contributing to developing
⿟ Strengthening the business
alternative energies, transitioning
Turbomolecular Pump Hydraulic Gear Pump base outside Japan to carbon-free and recycling-
(expanding/improving application oriented manufacturing
centers and laboratories and
processes, etc.
Aircraft Equipment strengthening manufacturing locations)
・Contributing by providing support for
Control developing new materials and products
Power drive unit
パワー・ドライブ・ コントロール・
・Developing monitoring instruments for
ユニット・ギヤボックス
gearboxes
valve
バルブ・
Natural Capital
modules
モジュール environmental measuring fields
⿟ CO2emissions 18,321 t
Stabilizer (-48% year on year)
スタビライザ・トリム・
trim actuator
アクチュエータ
⿟ Contribution volume of
reduction in CO2 emissions
アングル・
Angle gearbox
ギヤボックス
フラップ・
Flap actuators
アクチュエータ 55,166 t
(+7% year on year)
Flight Control System that Controls the Lift, Attitude,
and Other Aspects of Aircraft during Flight ⿟ Waste recycle rate
⇒P.37 99.59％

Shimadzu Integrated Report 2022 16

 Medium-Term Management Plan

Medium-Term Management Plan

Shimadzu specifies a medium-term management plan every three years. This medium- and long-term
strategic plan is shared with stakeholders and is intended to achieve sustained growth and increase
corporate value for the Shimadzu Group.

FY 2014 to FY 2016 FY 2017 to FY 2019

Become an Innovative Company Contributing to Become a Company That Solves Challenges

the Growth of Customers Globally in Society in Collaboration with Partners
All Around the World

Performance Targets and Results Performance Targets and Results

FY 2016 Targets FY 2016 Results FY 2019 Targets FY 2019 Results

At least 400.0 billion

Net Sales 350.0 billion yen 342.5 billion yen Net Sales
yen
385.4 billion yen

Operating Income 35.0 billion yen 37.1 billion yen Operating Income At least 45.0 billion yen 41.8 billion yen

Operating Margin 10.0 % 10.8 % Operating Margin At least 11.0 % 10.9 %

Overseas Sales Overseas Sales
Ratio At least 50 % 49 % Ratio At least 50 % 49.0 %

ROE At least 10 % 10.8 %

Key Measures Key Measures

⿟ Established innovation centers and otherwise promoted ⿟ Strengthened collaborations for solving challenges of society,
joint development projects with outside institutions. such as by promoting open innovation projects or engaging
⿟ Expanded/improved product lines and focused efforts on in joint research with academia or startup companies.
growing fields, such as pharmaceuticals and food safety. ⿟ Strengthened response to local needs at the four

⿟ Strengthened manufacturing locations outside Japan, Innovation Centers outside Japan.

such as by establishing a factory in Malaysia. ⿟ Implemented M&A measures.

⿟ Strengthened the R&D base mainly in Japan, such as at

the Healthcare R&D Center.
⿟ Expanded/strengthened medical systems, hydraulic
equipment, and other manufacturing capabilities.

Net Sales/Operating Income

Become an Innovative Company Become a Comp
■ Net Sales (Left axis)    
that Contributes to the Growth of Customers Globally Collaboratio
Operating Income (Right axis)

(Billion yen)
450
376.5
342.2 342.5
307.5 314.7
300
42.8
35.7 37.1
150 27.2
24.0

0
2013 2014 2015 2016 2017

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 Message from Contributing to Society through Business Overview Financial and Sustainability Financial and 　
the President Science and Technology and Results Non-Financial Highlights Management Corporate Information

FY 2020 to FY 2022

Become a Company That Solves Challenges in Society in

Collaboration with Partners All Around the World
̶Creating and Implementing Systems for Solving Challenges in Society̶

Engage in Solving Challenges in Society

Previous Plan
Launching Challenges Shimadzu Group R&D partners
new in society
Challenges Jointly develop and release new products.
in society businesses

Current Plan
Create Systems for Solving Challenges in Society and
Mainly Promoting them in Society
Customer expanding Customer Establish businesses based on new products,
challenges challenges
existing technologies, or services.
businesses Strategic Partners Business Partners
Achieve sustainable growth and
Partners for strategically Partners that actually use
become an entity even more
Previous Medium-Term Current Medium-Term promoting solutions the new systems
needed by customers and society. in society
Management Plan Management Plan
FY 2017 to FY 2019 FY 2020 to FY 2022

Reassessing the Medium-Term Management Plan Accomplishments during the Second Year
of the Medium-Term Management Plan
Become a Company That Solves Challenges in Society in
Slogan Collaboration with Partners All Around the World ⿟ Infectious disease countermeasure projects: In addition to
—Creating and Implementing Systems for Solving Challenges in Society—
selling novel coronavirus detection kits and fully automatic
PCR testing systems, variant strain detection kits and
Net sales 470.0 billion yen
FY 2022 other new products were also developed. Also focused
Operating income 68.0 billion yen
Performance Targets efforts on collaborating with companies, academia,
Operating margin 14.5%
healthcare institutions, or others to create systems for
infectious disease countermeasures.
Ongoing Measures for Infectious Disease
Infectious Diseases ⿟ Key businesses: Sales of liquid chromatographs and mass
Countermeasure Projects
spectrometer systems were strong, mainly in
pharmaceuticals, food safety, and other healthcare fields.
Four Growth Strengthen/expand Expand businesses Expand businesses
Strengthen/expand
Strategies businesses outside with recurring in four ⿟ Strengthened businesses outside Japan: Promoted solving
key businesses
Japan revenues growth fields
challenges with partners globally and increased overseas
sales ratio to 53 % (+2.2 pts year-on-year).
•Strengthen/expand business portfolio • Strengthen financial and
Strengthen ⿟ Expanded businesses with recurring revenue and in four
• Develop human resources and reform development functions
the Foundation human resource systems • Strengthen governance
for Growth • Implement DX measures • Manage sustainability
growth fields.

pany That Solves Challenges in Society in Become a Company That Solves Challenges in Society in
on with Partners All Around the World Collaboration with Partners All Around the World
̶Creating and Implementing Systems for Solving Challenges in Society̶
470.0 (Billion yen)
428.2 70
391.2 385.4 393.5 68.0
63.8 60
50
49.7
44.5 41.8 40
30
20
10
0
2018 2019 2020 2021 2022 （FY）
(Target)

Shimadzu Integrated Report 2022 18

 Medium-Term Management Plan

Promoting Infectious Disease

Countermeasure Projects
The spread of infectious diseases represents a major challenge for society. We will strengthen our offering of
viral, bacterial, and other pathogenic testing solutions by developing new products in addition to instruments
and reagents offered thus far. Furthermore, in addition to offering products, we will also contribute to society
by actively working with academic and healthcare institutions, companies, or other partners to prevent the
spread of COVID-19 and other infectious diseases.

Overview
In an effort to implement infectious disease working with academic and healthcare institutions, companies,
countermeasures, Shimadzu has strengthened its measures and other partners to create systems for controlling infectious
for offering viral, bacterial, and other pathogenic testing diseases, and are actively involved in developing solutions for
solutions. Within those measures, in addition to offering new challenge of society with infectious diseases.
infectious disease testing-related products, we are also

Pathological Diagnosis Support for Therapeutic Drug

Virus Testing
(Pneumonia Examination) Preventing Infection Development Support

New PCR testing PCR testing system Mobile X-ray system Standards testing for System for measuring blood
reagent (pneumonia examination) disinfectant ethanol concentration of candidate
Displaying
(also detects variants) therapeutic drugs for the coronavirus
results
Products

New virus testing method using Patient self-

Rapid virus testing blood and exhaled breath, interview system
MALDI mass prediction of progression to as infectious
spectrometer severe diseases, and healthcare Patients can be examined for disease Virus Monitoring
methods using exhaled breath
pneumonia from their bedside countermeasures
in a patient room or ICU.
Monitoring coronaviruses in sewer water
to predict virus spread
Testing Data Management System
Epidemiological Survey of Sewer Water

Support for Establishing PCR Large-Scale Variant

Water effluent from facility toilets surveyed by periodic monitoring (at least once a week)
Facility A Week 1 Week 2 Week 3

Testing Centers in Companies/ Analysis Based on

With

Test order
Creating Systems

symptoms
Without

Universities Whole Genome Analysis Management symptoms

database Test results

Whole-
PCR/ genome Not detected Not detected Detection 1
pretreatment sequencing
Data management system Facility B

Overview of
Not detected Not detected Not detected
Kyoto Model
Human Infection Testing Negative Positive
Health Results PCR testing Identify infected subjects, including those tested
positive without symptoms, and then use data to
Isolate
appro-
management data notification system and kits prevent infection spread. privately.

Measures in FY 2021

To Contribute to COVID-19 PCR Testing, individual samples (pooled sample) in order to reduce the
Shimadzu Released the Amprep Analyte time and cost required for testing. If a pooled sample tests
Pretreatment System, the First Medical positive, then each individual
sample contained in the pooled
Device for Pretreating Samples during Pooled
sample is tested separately to
Sample Preparation
identify the positive sample.
In Japan on January 6, 2022, Shimadzu released the Shimadzu has started offering
Amprep analyte pretreatment system for testing pooled pooled sample testing services
samples (hereinafter“pooled method”). using the Amprep system as an
The Amprep system can hold and simultaneously process efficient testing method for
up to 20 individual samples or up to 4 pooled samples (with groups with a low percentage of
up to 5 individual samples per pool). individuals that test positive.
The pooled method refers to testing a mixture of multiple Amprep Analyte Pretreatment System

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the President Science and Technology and Results Non-Financial Highlights Management Corporate Information

This links to more information about Shimadzu products that contribute to

healthcare workplaces, solutions for supporting therapeutic drug development,
comments from researchers, and so on.
For more details, refer to the website.
https://www.shimadzu.com/covid-19/

Established AdvanSentinel, a joint venture Contributing to the Efficient Detection of

with Shionogi & Co., Ltd. Variant Strains
In January 2022, Shimadzu and Shionogi & Co., Ltd. Coronaviruses gradually mutate as infections are repeatedly
established AdvanSentinel, a joint venture for assessing public transmitted and proliferate. Consequently, Shimadzu
health risks based on monitoring sewer water or other means. released new research-use PCR testing reagents for
In Europe and the United States, municipal sewer detecting the Delta variant in July 2021 and the Omicron
systems are periodically monitored to detect spiking or variant in January 2022.
diminishing COVID-19 infection trends as early as possible Shimadzu will also continue to research and develop
and wastewater effluents from large facilities are monitored additional reagents in response to new variant strains as they
for early identification of infection clusters. appear in the future.
The aim of AdvanSentinel is to use Shionogi’
s strength in
developing new analytical techniques based on science,
Shimadzu’
s strength in technologies for measuring
molecules in the environment, and the networks developed
by both companies from monitoring sewer water to build an E484A Primer/Probe Set for
organization for assessing not only COVID-19 infections, but Contributing to Omicron
Variant Screening
also future epidemics and other public health risks
throughout all of Japan.
Released Electronic Medical Records
Connection Software for AutoAmp to
Increase PCR Testing Efficiency
Shionogi President Teshirogi, In August 2021, Shimadzu released optional“Electronic
AdvanSentinel Vice-President
Imai and President Koga, and Medical Records Connection Software for AutoAmp”for
former Shimadzu President
Ueda (left to right) connecting an AutoAmp fully automatic PCR testing system
(released in November 2020 for detecting COVID-19 and
other viruses) to a SimCLINIC electronic medical records
Providing Support for Establishing PCR
system. The software prevents human manual operating
Testing Centers
errors and sampling handling errors and improves PCR
Shimadzu has been providing support for establishing testing efficiency by automatically sending information about
COVID-19 PCR testing centers. So far, Shimadzu has helped PCR test subjects from their electronic medical records.
establish 32 centers at companies, elderly care facilities, In the future, we also intend to offer the ability to connect to
educational institutions, and other locations. At each of the and function in conjunction with non-Shimadzu electronic
organizations, business activities have been continued in a medical record systems or testing networks.
manner that considers the safety of employees, customers,
suppliers, and neighboring residents.
One of the companies where Shimadzu helped establish
a PCR testing center is DMG Mori Co., Ltd. Beginning in
July 2021, four AutoAmp fully automatic PCR testing
systems are being used to confirm negative COVID-19 test
results by PCR testing. Up to 48 tests are performed per
day, with test results reported within the same day, mainly
AutoAmp Fully Automatic PCR Testing
for employees exposed to customers and other people System with Electronic Medical
Records Connection Software
outside the company.
Shimadzu will continue efforts to bring the pandemic to
an end as soon as possible by developing a variety of
products and technologies
and promoting their
adoption in society.

PCR Testing Room at DMG

Mori (Iga Campus)

Shimadzu Integrated Report 2022 20

 Medium-Term Management Plan

Advanced Healthcare
Societies around the world are rapidly aging. Therefore, to achieve a society where people can be active
longer, it is becoming increasingly important to further extend the healthy life expectancy. Furthermore,
as our lifestyles have evolved, the number of patients with cancer or mental/neurological disorders,
which are believed to correlate closely with lifestyle diseases, has been increasing each year.
In an effort to achieve a healthy life cycle, Shimadzu has been promoting“advanced healthcare”
product and service solutions that combine our analytical (component measurement) and medical
(image processing) technologies for each stage of healthcare, from routine health management,
ultra-early diagnosis, and diagnosis to treatment and prognosis.

Shimadzu Products and Services Offered for Respective Disorders

Psychiatric/Neurological
Infectious Disease Cancer Lifestyle Disease
Disorder

• Virus testing (PCR testing) • Biomarker screening (mass • Biomarker screening and • Biomarker screening and
• Microorganism identification spectrometry: amyloid beta, rapid pathological diagnosis drug concentration testing in
and exhaled air analysis etc.) (mass spectrometry: blood (mass spectrometry:
(mass spectrometry) metabolites, proteins, etc.) metabolites,
immunosuppressants, etc.)

Testing
Equipment
and
Reagents
AutoAmp Fully Automatic Amyloid MS CL LCMS-8060NX Mass CLAM-2030 CL Analyte
PCR Testing System Spectrometer System Pretreatment System

Novel Coronavirus Variant MALDI-8020

Strain Detection Kit

• Pneumonia diagnostic • Amyloid accumulation and • Breast cancer examination • Bone mineral density and
support (radiography systems) brain function assessment (head/breast PET system) vertebral fracture measurement
(head/breast PET and optical • Photoimmunotherapy (fluoroscopy and radiography
brain function imaging support system (near-infrared systems)
systems) imaging system)

Diagnostic
Imaging

Mobile X-Ray System BresTome TOF-PET System LIGHTVISION SONIALVISION F4

Near-Infrared Fluorescence R/F System
Imaging System

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the President Science and Technology and Results Non-Financial Highlights Management Corporate Information

Examples of Main Advanced Healthcare Activities

Cerebrovascular Impairment Risk Service Started for Measuring Amyloid

Examination Service for Research Peptides in Blood by MS to Assist Diagnosis
In August 2021, Shimadzu and the National Cerebral and In April 2022, Shimadzu Techno-Research, the Shimadzu
Cardiovascular Center were the world’
s first to jointly Group company involved in contract analysis, started offering
establish technology for detecting the genetic risk of a service for measuring amyloid peptides in blood by mass
cerebrovascular impairment particular to East Asia. spectrometry using Shimadzu testing technologies and
Shimadzu Techno-Research, a Shimadzu Group company, instruments to assist diagnosis of
started offering contract analysis services to healthcare dementia types. Using the
institutions based on that technology only for research Amyloid MS CL system Shimadzu
purposes. In the future, the aim is to contribute to increasing released in 2021 for measuring
the treatment levels in East Asian countries by using the amyloid peptides in blood, the
contract analysis service and the knowledge from Japan to service can measure the amyloids
help identify the pathology involved. in plasma volumes as small as
0.6 milliliters.
Comprehensive Joint Research Agreement The service is being offered to
Signed with Jichi Medical University healthcare institutions and Shimadzu Techno-Research
Laboratory used for MS
dementia treatment centers with a Measurement of Amyloid Peptides
In October 2021, Shimadzu and Jichi Medical University in Blood
dementia specialist on staff.
signed a three-year comprehensive joint research agreement
intended to research applications for mass spectrometry
Near-Infrared Imaging System Released for
(MS) technologies in clinical fields. At the Jichi Medical
Drug Discovery Research
University Hospital, Shimadzu is developing MS-based
techniques that can contribute to early/rapid diagnosis of In April 2022, Shimadzu released the LuminousQuester NI
various diseases, such as cancer, heart disease, infectious near-infrared imaging system. The system comprises a
diseases, and dementia; therapeutic drug monitoring; or camera for simultaneously capturing near-infrared and visible
preventive medicine. light images and software for analyzing the image data for
non-clinical research applications. By including the camera
Comprehensive Clinical Field Partnership that enables operation in any environment and software that is
Agreement Signed with Jikei University easy to operate, the system is designed to provide support for
drug discovery research applications. Shimadzu was already
In December 2021, Shimadzu and Jikei University signed a
offering LIGHTVISION near-infrared fluorescence imaging
five-year comprehensive partnership agreement. The partners
systems based on near-infrared imaging technology for
will identify clinical needs, engage in joint research, and train
some time. However, the new system features additional
human resources in fields related to analytical and measuring
advancements to the imaging technology for use in cancer
instruments, clinical testing equipment, or diagnostic imaging
photoimmunotherapy, which were
systems. First, the partners will begin collaborating in
researched in collaboration with Dr.
bone-related areas that have a major impact on healthy life
Hisataka Kobayashi, a Senior
expectancy, with the aim of more rapidly implementing the
Investigator at the National Cancer
results from research in society.
Institute in the United States and
with the National Cancer Center
First Patient Enrolled in the Clinical Trial of
Hospital East in Japan. The new
Photoimmunotherapy product was developed based on the
In February 2022, Shimadzu and Rakuten Medical, Inc. results achieved from that research.
enrolled the first patient at the National Institute of Health in the LuminousQuester NI Near-Infrared
Imaging System
United States for Phase II clinical trial of photoimmunotherapy
using a fluorescence imaging system. Shimadzu provides the
fluorescence imaging system as well as real-time observation
and recording of photosensitive substance response to light
irradiation during photoimmunotherapy.

Shimadzu Integrated Report 2022 22

 Medium-Term Management Plan

Contributing to Development of Alternative

Energies and Transition to Carbon-Free Society
Helping to Develop Efficient Renewable Energies and Ensure their Reliable Supply

Shimadzu will contribute to creating innovation in environmental/energy fields by supplying a variety of

products and technologies that contribute to technology development and quality control applications for
renewable energies, such as hydrogen, fuel ammonia, and offshore wind power, and for carbon recycling,
which are essential for achieving carbon neutrality.

Hydrogen Industry Carbon Recycling Industry

With a broad offering of inspection technologies, Shimadzu contributes to developing technologies used
Shimadzu contributes to providing safe and secure by industry to recycle CO2 as a resource by supplying
equipment maintenance and a reliable supply of energy. measuring instruments.

Total Organic Carbon Analyzer

CO2 gas
emissions Absorbed

Inspecting Hydrogen-Related Part Gas Analysis and Inspection

Strength GC System
Fatigue and Endurance Testing Machine Portable Gas Concentration Analyzer

Evaluates effects of hydrogen embrittlement on fuel cell Supports development of technologies for separating and
containers and tubing materials in hydrogen capturing CO2, such as by quantifying the CO2 absorbed
gas environments. in concrete.

Fuel Ammonia Industry Offshore Wind Power Industry

Shimadzu contributes to ensuring reliable energy supplies With our composite material manufacturing equipment
and maintaining a clean environment by supplying highly and inspection systems, we contribute to building safer
accurate gas analysis technology for using ammonia as a and more secure energy infrastructure.
fuel, which does not generate any CO2 when burned.
Underwater Infrastructure
Installation and Inspection
Operations
Infrared Gas
Concentration Analyzer Underwater Optical Wireless
Communication Modem

Portable Gas
Efficient Subseafloor Manufacturing Glass
Concentration Analyzer
Scanning Using Fibers for Reinforcing
Underwater Robots Turbine Blades
Magnetic Sensor Glass Winder

Measures NOx and other gases when burning ammonia Sensors used for offshore wind power
mixtures for power generation generator maintenance

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 Message from Contributing to Society through Business Overview Financial and Sustainability Financial and 　
the President Science and Technology and Results Non-Financial Highlights Management Corporate Information

Investment in Kobe University Startup Company to Contribute to

Achieving a Carbon-Free Society
In November 2021, Shimadzu invested in and signed a based manufacturing methods, which do not use fossil fuels
business partnership agreement with Bacchus Bio innovation and reduce carbon dioxide emissions, or leading to a
Co., Ltd. (hereinafter“Bacchus”), a startup company spun carbon-free society.
off from Kobe University. Bacchus’
s strength is using its In biotech-related markets, which are projected to reach
advanced biofoundry (biological production system) 300 trillion yen in sales by 2030, we intend to contribute to
technology in combination with digital technology in the achieving a carbon-free society by using our partnership with
field of smart cells. Smart cells are cells capable of Bacchus to develop
efficiently mass-producing various substances useful for innovative analytical
pharmaceuticals, foods, new materials, and other techniques and
applications. Combing biotechnologies with AI, IT, or other measurement technologies
digital technologies enables a transition from petroleum and and improve the efficiency
natural gas-based manufacturing methods to biotechnology- of production systems.
Row of Shimadzu Liquid Chromatograph Mass
Spectrometer Systems at the Bacchus Laboratory

Participation in Experiment with Kyoto University and Others to Demonstrate

Using Marine Photosynthetic Bacteria for Carbon Dioxide Fixation
Shimadzu will partner with Kyoto University, Symbiobe Inc. (a Shimadzu will continue contributing to the achievement
startup company spun off from Kyoto University), and others of carbon neutrality by helping with experiments for
to participate in the FY 2021 Japan Science and Technology demonstrating the cultivation of marine photosynthetic
Agency Center of Innovation-Next (COI-NEXT) program to bacteria and reducing CO2 levels.
establish facilities for recycling resources based on
establishing a net-zero carbon biotechnology industry.
The objective of the program is to utilize marine photosynthetic
bacteria, which fix atmospheric carbon dioxide and nitrogen Shimadzu Products Used to Support the
Demonstration Experiment
gases in the cells, for producing a variety of products and
valuable substances while also reducing greenhouse gases.
Specifically, the program intends to produce bioplastics,
proteins, and other biological macromolecules, and develop
agricultural nitrogen fertilizers and feeds for aquaculture from
the metabolic products generated from photosynthesis
during that process. Total Organic Carbon Analyzer Gas Chromatograph

Selected as a NEDO“Green Innovation Fund”Business

̶Helping to Develop and Evaluate Concrete that Reduces CO2 Emissions̶

Due to the potential for large-scale fixation of CO2 by using it Industrial Technology Development Organization (NEDO).
as an ingredient in concrete and cement products, and That proposal was selected on January 28, 2022.
considering the stability of the resulting products, initiatives The joint proposal was submitted by a consortium of
to research, develop, and demonstrate the technology are three construction companies planning to implement the
being fully deployed in Japan, the United States, and Europe proposal, namely Kajima Corporation, Denka Company
in an effort to actually use the technology in society as soon Limited, and Takenaka Corporation, 44 private companies,
as possible. However, the technology needs to have a 10 universities, and 1 research institution. The aim of the
broader range of potential applications and costs must be consortium is for the project to achieve a concrete that
reduced before it can be adopted for use in actual practice. maximizes reduction of CO2 emissions and fixation of CO2,
Shimadzu therefore submitted a joint proposal for the while also developing corresponding construction technologies
“Project for Development of Technology for Producing and establishing quality assessment technologies necessary for
Concrete and Cement Using CO2,”funded by the Green achieving widespread full-adoption of the technology in society.
Innovation Fund and advertised by the New Energy and

Shimadzu Integrated Report 2022 24

 Medium-Term Management Plan

Message from the CFO

Akira Watanabe
Director
Senior Managing Executive Officer
CFO
In charge of corporate strategy planning and
corporate communications

Second Consecutive Year of Record-Breaking centered mainly on liquid chromatographs and mass
Results for the Second Year of the Medium-Term spectrometer systems, which are our key models, we are
Management Plan Ended March 2022 also accelerating research and development in advanced
fields to create value for society, in areas such as infectious
For the fiscal year ended March 2022, which was the second
disease countermeasures, advanced healthcare, and carbon
year of the current medium-term management plan, results
neutrality, which we have identified as priority businesses.
broke previous record levels despite higher COVID-19 variant
We intend to increase R&D spending, as a ratio of sales, to
infection levels, supply chain disruptions caused by shortages
near the 5% level, such as by expanding partnerships with
of semiconductors and electronic parts, and sharp price
other companies and collaborations with academic or
increases for steel materials and other items. The record
research institutions.
results were achieved because we responded flexibly to
In terms of capital equipment investments, we will
changes in new business conditions.
steadily invest in growth fields while taking into consideration
For the Analytical & Measuring Instruments segment,
the returns on assets or investments for each project.
sales of key models—liquid chromatographs and mass
To increase business growth outside Japan, during the fiscal
spectrometer systems—were strong in healthcare fields,
year ended March 2022 we made investments intended to
such as pharmaceuticals, where investment levels have
strengthen the function of Innovation Centers, which were
been very active. In the Industrial Machinery segment,
established to promote joint research and development with
turbomolecular pump sales increased significantly due to a
business partners and improve the service network in order
backdrop of strong semiconductor demand. Sales of the
to further strengthen the aftermarket business. To achieve
novel coronavirus reagent kits and fully automatic PCR
future business expansion, we plan to actively invest in
testing systems, released the previous year, contributed to
strengthening our manufacturing functions and in digital
society’
s current challenge with fighting the pandemic.
transformations (DX) intended to reform our business model.
By steadily implementing strategies specified in the
We plan to actively engage in M&A activities to increase
medium-term management plan, we intend to achieve record
corporate value to the extent that it does not harm our
results for the year ending March 2023 as well.
financial health. We will expand business partnerships
Actively Investing to Achieve Shimadzu Growth involving equity investments and also consider building new
business models for the future based on joint operations with
Business environments in which the Shimadzu Group
partner companies or other outside companies.
operates are changing at a mind-boggling pace. In order to
respond quickly to changes in business conditions, it is Strengthening the Financial Foundation and
essential that we steadily and rapidly execute investments Improving Capital Efficiency
related to R&D and production equipment as well as growth
On the other hand, it is also important to strengthen our
investments such as M&A.
financial foundation for supporting investments in growth and
Given Shimadzu’
s corporate philosophy“Contributing to
improving capital efficiency.
Society through Science and Technology,”investments in
Due to our ongoing efforts to strengthen profitability, we
research and development will serve as a source of
have been improving our ability to generate cash. We have
competitiveness. In addition to research and development

25 Shimadzu Integrated Report 2022

 Message from Contributing to Society through Business Overview Financial and Sustainability Financial and 　
the President Science and Technology and Results Non-Financial Highlights Management Corporate Information

Dividends from FY 2013 to 2022 (Est.)

(Yen)
50
50 48

40
34
28 30
30
24
20
20 18
13
9
10

0
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 (est.) (FY)

been strengthening control of operating capital, such as Aiming for Continuous Dividend Increases
inventory and accounts receivables, and continue to maintain
Returning profits to shareholders is considered one of
both our equity ratio and D/E ratio at financially healthy
Shimadzu’
s most important management issues. Therefore,
levels. To ensure funds are used effectively, the cash
we have prioritized returning consistent and continuous
management system (CMS) previously adopted in Japan will
dividends based on a target 30% consolidated payout ratio.
also be deployed in the United States, Europe, Asia, and
In terms of shareholder returns, we have increased dividends
China to reduce interest-bearing debt by more effective
for the last eight years and plan to increase them again for the
utilization of funds throughout the Shimadzu Group.
ninth consecutive year, for the year ending March 2023.
To prepare for rapid changes in business conditions, we will
In order to continue increasing dividends in a consistent
increase the available liquidity on hand and build a financial
and continuous manner, for the next medium-term
foundation that enables ongoing and flexible investments
management plan, we will reconsider the payout ratio and
necessary for achieving growth.
even consider specifying additional criteria, such as the DOE
In terms of improving capital efficiency, we are
(dividend on equity ratio).
considering the adoption of ROIC as one indicator for
making investment decisions. ROIC is not only expected to Actively Communicating with Shareholders and
help reduce accumulations of assets or resources but is also Investors
expected to be useful for investment decision-making. A key
We believe maintaining a dialogue with shareholders and
strength of Shimadzu is the ability to generate reliable returns
investors is extremely beneficial, because it not only helps
by utilizing the wide range of technologies available to us to
them gain a better understanding of Shimadzu Group
deploy multiple businesses based on different business
management strategies and business activities, but also
models or in different business fields, thereby building a more
because it improves Shimadzu management quality and
diversified business portfolio that ensures profitability and
increases corporate value. Therefore, we are committed to
stability that only we can provide.
actively disclosing appropriate information, further
Implementing Sustainability Management enhancing communication with shareholders and investors,
taking their views seriously and incorporating them into
As the CFO, my intention is to provide not only conventional
management improvements through explanations and
financial statements but also non-financial information to the
reports to management.
investors in an effort to communicate a picture of Shimadzu
As CFO, I will continue to work to build the trust of not
as a company that implements its own style of sustainability
only shareholders and investors, but also customers and
management in an easy-to-understand way. By allocating
society in general, achieve sustained growth, and increase
management resources appropriately, we intend to not only
medium- and long-term corporate value, based on our
accelerate initiatives to achieve carbon neutrality and a
motto,“Become a Company that Solves Challenges in
circular economy, but also take on the challenge of creating
Society in Collaboration with Partners All Around the World. ”
new value with products and services for achieving a
I want to thank all our shareholders and investors and look
sustainable society and continuously increasing Shimadzu’
s
forward to your ongoing support. Thank you.
corporate value.

Shimadzu Integrated Report 2022 26

 Pursuit of Science and Technology

Initiatives to Achieve Advancements in

Science and Technology
R&D and Innovation
Shimadzu is engaged in developing new businesses and with broad applicability, such as AI, IoT, and robotics,
technologies that will be needed by society in the future. researching and developing core technologies for use in
For example, Shimadzu is developing new improved creating innovative next-generation products, and combining
products and technologies, developing shared technologies or developing more advanced technologies and expertise.

Process for Generating Innovation

Solving challenges of society
and customers

Technology Human
resources

Develop new
products based
on seeds/needs.

Develop specific
Supply state-of-
applications for
the-art products
seeds/needs from
to the customer
Shimadzu-customer
Promote quick R&D R&D system.
joint research.
and product
development.

Promote R&D Generate ideas from

by customer. new discoveries.

Safety and
Human Industrial
security of
health development
society

SHIMADZU Innovation
Creating New Value

27 Shimadzu Integrated Report 2022

 Message from Contributing to Society through Business Overview Financial and Sustainability Financial and 　
the President Science and Technology and Results Non-Financial Highlights Management Corporate Information

R&D Systems and Collaboration Processes for Promoting Innovation

Shimadzu engages in basic research and product/application the Earth.”Shimadzu is also actively collaborating with
development by addressing challenges of society based on outside partners to develop innovative technologies and
our corporate philosophy“Contributing to Society through products, establish new services in society, and strengthen
Science and Technology”and management principle incubation capabilities for quickly commercializing such
“Realizing Our Wishes for the Well-being of Mankind and technologies, products, and services.

Innovation Centers
Innovation Centers have been established in five R&D Organization
locations—the United States, Europe, China,
Singapore, and Japan—as facilities for
conducting joint research or joint development
with academic institutions, research institutions,
private companies, or other partners with
advanced technologies.
For more details, refer to p. 29

Basic Academia
technology
research

Application
technology/ Incubation
software feasibility study
development
Business
partners
Product
development
(instruments/
reagents)

Startup
companies
Products and Services Development
Shimadzu has product and service development
locations in Japan, China, and Europe, that develop and
supply solutions for challenges of society.
The Healthcare R&D Center consolidates Shimadzu’ s R&D
activities related to healthcare. It combines analytical/measuring
technologies with medical imaging technologies or accelerates Basic Technology Research and Incubation
product development processes. A KYOLABS collaboratory Key technologies are researched and developed at the three locations in
space was also established for broadly presenting and discussing Japan, China, and Europe. In Japan, in particular, Shimadzu established
Shimadzu technologies or joint research projects. The purpose of the SHIMADZU Future Collaboratory (Kyoto Prefecture) to promote R&D
the facility is to generate new businesses by working with of advanced analysis, brain science and the five senses, innovative
outside partners to research and develop innovative products biotechnology, artificial intelligence (AI), and other technologies. The aim
and solutions. of open innovation is to create new value and solve challenges of society.

Healthcare R&D Center Corporate Product Design Center SHIMADZU Future Collaboratory Koichi Tanaka Mass Spectrometry
Research Laboratory

Shimadzu China R&D Division (RDC) Kratos in UK Shimadzu Research Laboratory Shimadzu Research Laboratory
(Europe) Ltd. (Shanghai) Co., Ltd.

Shimadzu Integrated Report 2022 28

 Pursuit of Science and Technology
Initiatives to Achieve Advancements in Science and Technology

Joint Research Examples

Innovation Centers
There are as many different challenges and needs in society Such collaborations are based at innovation centers
as there are regions and countries in the world and they established in various regions around the world. Conducting
continue to become more diverse. The Shimadzu Group joint research with advanced customers at the respective
contributes broadly to solving the challenges of customers regional locations in the Americas, Europe, China, other
by identifying those challenges and needs and breaking Asian countries, and Japan, has allowed us to produce
them down into specific research objectives. results more quickly. By sharing those results with the other
However, to create new technologies and innovations, it locations around the world, we offer corresponding value to
is essential that we work with various partners around the more people.
world where the challenges or needs occur. Consequently,
we are engaged in joint development or innovation creation
projects with a variety of partners around the world.

Shimadzu Group Innovation Centers

Contributing to Solving Challenges in Society by Implementing Advanced Results from R&D

Europe Innovation Center (China)

Innovation Center (U.S.)

China Americas
Japan

Innovation Center (Germany) Asia

Global Application Development Shimadzu Tokyo Innovation Plaza

Center, Head Office in Kyoto

Innovation Center (Singapore)

Joint Research on NMN Quantitation with Dr. Shin-ichiro Imai of

Washington University in St. Louis
U.S. subsidiary Shimadzu Scientific Instruments, Inc. and Dr. NMNs offer the potential of preventing and treating
Shin-ichiro Imai, MD, PhD, of the Washington University functional loss and disease symptoms associated with
School of Medicine (St. Louis, Missouri), Department of human aging.
Developmental Biology and Department of Medicine, signed Shimadzu will provide support for NMN research by using
a joint research agreement and are developing techniques mass spectrometry technology for cutting-edge anti-aging
for using mass spectrometry to quantitate nicotinamide research.
mononucleotides (NMN) and related compounds in biological
specimens. The main purpose of the research is to deepen
LCMS-8060 High-Performance Liquid
the understanding of the mechanisms involved in the aging Chromatograph Mass Spectrometer
Used for Joint Research with Washington
and longevity of mammals. University

29 Shimadzu Integrated Report 2022

 Message from Contributing to Society through Business Overview Financial and Sustainability Financial and 　
the President Science and Technology and Results Non-Financial Highlights Management Corporate Information

Joint Research with TotalEnergies SE (Major Petroleum Company in

France) and Two Universities in Europe to Develop an Oxygen Content
Analysis System for Researching Biofuels
Shimadzu has signed a comprehensive joint research tens of minutes, rather than the several hours required
agreement with TotalEnergies SE, a major petroleum previously. The system also provides more reliable
company in France, the University of Pau and the Adour measurement results that are not dependent on operator skill.
Region in France, and the University of Oviedo in Spain, to The oxygen content analysis system developed by
develop an oxygen content analysis system for use in Shimadzu, TotalEnergies SE, the University of Pau and the
researching biofuels for“clean energy”applications. Adour Region, and the University of Oviedo will contribute to
The system will be a revolutionary analytical instrument that R&D for promoting widespread adoption of biofuels and
combines Shimadzu gas chromatography technology with improving production methods.
patented technology owned jointly by TotalEnergies SE and
the two universities. The three parties, TotalEnergies SE, the
University of Pau and the Adour Region, and the University
of Oviedo, obtained a patent for innovative technology that
uses gas chromatography to separate compounds into
constituent elements and then uses a mass spectrometer or
other technology to detect the elements. Using the patented
technology, the system is able to examine each of hundreds
of peaks (waveforms in graphs of measurement results that
indicate specific chemical components) one at a time, to
identify the oxygen components contained in biofuels within GCMS-QP2020NX Gas Chromatograph Mass Spectrometer System Used for Research

Joint Research of Cancer Immunotherapy with Providence Cancer

Institute in the U.S.
Shimadzu Corporation and U.S. subsidiary Shimadzu included a Shimadzu LCMS-9030 liquid chromatograph
Scientific Instruments, Inc. (SSI) are engaged in joint mass spectrometer and a Shimadzu Nexera Mikros liquid
development with the Providence Cancer Institute in the U.S. chromatograph mass spectrometer system capable of micro
to develop technology for determining the disposition of flowrates, both of which were installed in August 2019.
cancer indicators (antigens) and therapeutic drugs in In 2021, it was announced that mass spectrometry
individuals during immunotherapy. technology contributed to discovering biomarkers for antibody
The research is being conducted at the bioscience drugs used for cancer immunotherapy. Shimadzu will
laboratory (Shimadzu Bioscience Research Partnership) in contribute to developing a new cancer immunotherapy
Bothell, Washington, established mainly by SSI Innovation method that uses mass spectrometry to target cancers in
Center in October 2018. The state-of-the-art analytical the head and neck, lungs, skin, or other areas.
systems operated to directly identify cancer antigens

Nexera Mikros
Liquid Chromatograph Mass Spectrometer System Used for Research

Shimadzu Integrated Report 2022 30

 Pursuit of Science and Technology
Initiatives to Achieve Advancements in Science and Technology

Combination of Biotechnology and Digital Technology Contributes to

Achieving a Carbon-Free Society
Business Partnership with Kobe University Startup Company Bacchus
Bio innovation Co., Ltd.
Shimadzu invested in and signed a business partnership mass-produce them at high-quality levels. In addition to
agreement with Bacchus Bio innovation Co., Ltd. (hereinafter engaging in joint research on a variety of topics, such as
“Bacchus”
), a startup company spun off from Kobe University. developing“analytical instrument improvements for achieving
Bacchus offers expertise in combining biotechnology with high throughput,”Shimadzu will also partner with Bacchus
digital technology in the field of“smart cells.”Smart cells are to build Japan’
s first biofoundry*.
cells with artificially modified genes that enable them to * A biofoundry is a biological production system consisting of cultivation, transport,
contract manufacturing, and other processes intended to increase the productivity and/
efficiently mass-produce targeted beneficial substances. or reduce the cost of producing products from biological materials.
They are anticipated for use in a variety of pharmaceutical,
food, environmental, and other fields, such as for increasing
the productivity of substances that were difficult to mass-
produce using conventional methods. They will enable a
carbon-free society by using biotechnology to eliminate the
use of fossil fuels and decrease carbon dioxide emissions from
petroleum and natural gas-based manufacturing processes.
Nevertheless, adopting biotechnological production
methods in industry presents various challenges, such as the
ability to quickly and accurately confirm whether intended
substances were actually produced and the ability to scale
Row of Shimadzu Liquid Chromatograph Mass Spectrometer Systems at the Bacchus
up production of new substances created in a laboratory and Laboratory

Utility of World’
s First Robot-Compatible Autonomous Laboratory
Systems, Including LC and LC-MS Units, Verified with Kobe University
Shimadzu and Kobe University (Prof. Tomohisa Hasunuma Biology Research Center for demonstration to researchers from
and others at the Engineering Biology Research Center) have companies and academic institutions currently considering
started testing to verify the utility of a prototype autonomous laboratory automation.
laboratory system (Autonomous Lab) designed with robotic, At Shimadzu, mainly the Technology Research Laboratory
digital, AI, and other advanced technologies. has been developing the autonomous laboratory system in order
Over the three years since FY 2018, Shimadzu and Kobe to achieve Shimadzu’
s previously stated vision for developing a
University have been jointly researching for the development future laboratory that can be used as a“platform for using
of new smart cells and their mass production. In order to robotics and AI to achieve scientific discoveries autonomously.”
build the autonomous lab system, starting in June 2021, The objective is to create laboratories of the future that can
data obtained from analytical instruments has been used perform experiments autonomously by using AI for data
with AI technology for specifying experimental conditions to analysis to support analysis or for specifying experiment
build a prototype system at the Kobe University Engineering plans automatically.

Prototype of Autonomous Lab System Autonomous Lab Robotics-Compatible Liquid Chromatograph

31 Shimadzu Integrated Report 2022

 Message from Contributing to Society through Business Overview Financial and Sustainability Financial and 　
the President Science and Technology and Results Non-Financial Highlights Management Corporate Information

Three Manufacturers Start Joint Research with Kindai University to

Establish a Metal 3D Printer System Truly Made in Japan
Shimadzu Industrial Systems Co., Ltd., Slab Inc., Dai-ichi technologies, Shimadzu will apply materials informatics (using
Ceramo Co., Ltd., and Kindai University have partnered to information science for efficiently identifying, researching, and
jointly research technological innovations for developing developing new materials) and process informatics (identifying
metal and ceramic parts using a metal 3D printer by the and optimizing methods for manufacturing the new materials
metal MEX (material extrusion) additive method. identified by materials informatics) to each stage of R&D in
The fabrication process using the metal 3D printer being order to provide support for development of revolutionary new
developed by the four partners uses a GEM200DG metal 3D materials by manufacturers and research institutions.
printer from Slab to form parts from 3D printing compound
material from Dai-ichi Ceramo, and then uses a VHS-CUBE
compact debinding and sintering furnace from Shimadzu
Industrial Systems to sinter the parts. Furthermore, specially
appointed professor Hideki Kyogoku from the Kindai University
Fundamental Technology for Next Generation Research Institute,
who is an authority on metal 3D printers, evaluates and provides
guidance on the overall research.
Given that Shimadzu has been investing significant effort in VHS-CUBE Compact Parts Formed with 3D Printer
Debinding and Sintering
informatics (information science) R&D, including AI and robotics Furnace

Collaborating with the Graduate School of Engineering, Osaka University

and SIGMAXYZ Inc. to Develop Cultured Meat Production Technologies
Shimadzu signed a partnership agreement for deploying 3D the taste, such as the flavor, texture, aroma, and bite feel,
bioprinting technologies in society in partnership with the and develop solutions for analyzing nutritional content or other
Graduate School of Engineering, Osaka University and “functional”characteristics. In addition, Shimadzu will create
SIGMAXYZ Inc. Previously, Shimadzu and the Graduate models for human organs used to research rare disorders or for
School of Engineering, Osaka University had signed a joint individualized medicine applications and is also considering
research agreement for developing equipment for using 3D bioprinting technologies for regenerative medicine and
automatically manufacturing tailor-made cultivated meats drug discovery applications.
using 3D bioprinting technologies. In the future, in addition to accelerating the process of
Shimadzu will develop the specialized equipment for developing 3D bioprinting technologies, we will also promote
automating the process of bundling 3D-printed muscle, fat, partnerships with companies and research institutions relevant
and blood vessel fibers, and develop solutions for analyzing for establishing the widespread use of such technology in society.

Illustration of Automatic 3D Bioprinting-Based Tailor-Made Cultured Meat Production Equipment

Automatic Cultured Meat Production System Using 3D Bioprinting Technology Culture media samples

Form tailor-made
Culture media samples
cultured meat
Evaluate culture status

Transporting Production line

between instruments Analysis of functionally
Analysis line
beneficial components

Various Shimadzu analytical instruments Achieve analysis and evaluation of

components that contribute to
improving taste and health.
Improve health by eating meat! Create a
Evaluate food texture Evaluate flavor Evaluate aroma new healthcare industry.

Shimadzu Integrated Report 2022 32

 Pursuit of Science and Technology

Strengthening Intellectual
Property Strategies
Intellectual Property Strategies
Goal Strengthen Product Competitiveness and Drive Businesses with Strong Intellectual Properties

IP landscape assessments are used to determine business strategies and

Using Intellectual Properties model strategies. Acquired intellectual properties are used to increase
IP landscape corporate value by building technology brand strength or to deploy open or
closed strategies for standardization.
Technology brand strategy

Standardization support strategy

(open/closed)

In addition to acquiring intellectual properties for strategically driving businesses,

Acquiring and Respecting we will also build our portfolio of intellectual properties, including related technologies,
Intellectual Properties design rights, and trademarks, to create barriers to entry. Furthermore, we are also
Acquiring intellectual properties for driving businesses introducing an idea stocking system for stocking submitted inventions as a stock of
ideas that can be used for future development.
Building the patent portfolio To ensure we do not violate the intellectual property rights of other companies and
(establishing barriers to entry)
minimize business risk, we established a unique system that makes it essential to
Idea stocking system survey and evaluate intellectual property rights of other companies before a new
product can be released.

Acquiring and Respecting Intellectual Properties

1. Creating Inventions and Establishing Rights 3. Investment in Intellectual Properties Based

To increase our output of inventions by the entire Shimadzu
on the Business Portfolio
Group, a broad view of all development projects will be We actively invest in intellectual properties in R&D departments
considered before creating inventions for important topics. to prepare for future businesses, to protect and develop current
Whenever products are being commercialized based on businesses, and based on our business portfolio.
new technologies, such as AI/IoT technologies, new services Due to active research activities in R&D departments,
based on DX measures, or infectious disease the number of patent applications registered has remained
countermeasures, we promote activities for creating an at 20%. However, the promotion of joint research in recent years
invention, quickly submitting a patent application, and has been increasing the number of joint patent applications.
establishing rights. Investment within divisional departments is commensurate
with the corresponding ratio of sales. Consequently, the analytical
2. Strengthening Intellectual Properties for & measuring instruments segment, which includes liquid
Important Technologies chromatographs, mass spectrometer systems, and other strong
models, accounts for about 60% of all registered patents.
Strong basic patent rights are established for important
technologies. In addition, an intellectual property portfolio is
formed and used as a source of product competitiveness.

Patents Registered in Japan Patents Registered outside Japan

Research Research
laboratories Analytical laboratories Analytical
19% 58% 22% 62%
Aircraft Aircraft
3% 1%
3,917 2,859
Industrial (FY 2021) Industrial (FY 2021)
6% 7%
Medical Medical
14% 8%

33 Shimadzu Integrated Report 2022

 Message from Contributing to Society through Business Overview Financial and Sustainability Financial and 　
the President Science and Technology and Results Non-Financial Highlights Management Corporate Information

Using Intellectual Properties

1. Utilizing IP Landscapes 3. Standardization Support Strategy

We use IP landscaping to utilize intellectual property
(Open/Closed)
information for businesses and model strategies. For issues We propose and execute both open and closed strategies.
that are important for management or We release some technologies and intellectual properties for
business, large amounts of Shimadzu solving challenges of society or creating new markets (open
Internal Market
and non-Shimadzu intellectual information information strategy) or establish barriers to entry for differentiating
property information are analyzed technologies to protect them for use in expanding market
and taken into consideration in Intellectual
property share (closed strategy).
combination with market information information
That approach is intended to both increase corporate
and information from within value and ensure economic profitability.
Shimadzu. Such efforts provide
significant awareness and supporting
Awareness and Basis 4. Intellectual Property Training
evidence for decision-making. for Decision-Making
In order to acquire strong intellectual property rights and
Therefore, we endeavor to achieve
minimize risks from the intellectual properties of other
sustained Shimadzu growth by allocating investments for
companies, we conduct intellectual property training. Newly
intellectual properties and by promoting the creation and
hired employees are given practical training for acquiring
execution of a business portfolio strategy.
basic knowledge about intellectual property and securing
rights to inventions. Mid-career employees are trained to
2. Technology Brand Strategy
improve their ability to prepare patent claims for submissions to
Technology brands are communicated in a manner that the patent office and improve their ability to judge violations of
expresses Shimadzu’
s core technologies in a straightforward intellectual properties owned by other companies. Intellectual
and intuitive way. property training is also provided in a timely manner for new
The purpose is to increase the value of the Shimadzu brand. technologies, such as AI patents and business model patents.

⿟ UF Technologies (technology for achieving mass

spectrometry with ultra-high sensitivity at ultra-fast
speeds)
Awards from outside Shimadzu
⿟ GLIDE Technologies (power-assist technology for ensuring In April 2021, the Commissioner of the Japan Patent Office (Ministry
a smooth operating feel for medical systems) of Economy, Trade and Industry) awarded Shimadzu the Intellectual
⿟ Nexera Technologies (see below) Property Achievement Award in recognition of our intellectual
property activities.

• Nexera Technologies (see below)

令和 3年度 知的財産権制度活用優良企業等表彰
知財功労賞 特許庁長官表彰
Technologies Underlying Shimadzu Liquid
Chromatography
知財活用企業（特許）

株式会社島津製作所
LC systems are used for R&D, investigation, and other purposes in 代表取締役社長 上田 輝久

a wide range of fields, such as pharmaceuticals, chemicals, 会社概要

所 在 地 京都府京都市中京区西ノ京桑原町1
https://www.shimadzu.co.jp/

environmental testing, and forensics. In particular, for 設 立 1917年（創業1875年）

資 本 金 26,600百万円

pharmaceutical development applications they must be able to 従 業 員 13,182人

事業内容 分析機器、計測機器、医用機器、産業機器、航空・海洋・磁気計測機器の製造・販売

accurately detect and analyze trace (ppm-level) quantities of

substances in blood, such as pharmacokinetic products of new 受 賞のポイント
研究開発テーマを全体俯瞰し、事業部と協働してテーマごとに発明届出目標を設定し発明創出活動を展開しており、開発テー

drugs administered or hormones within the body. Shimadzu LC

マと創出知財の紐づけて管理し、開発成果に対し漏れなく知財化している。特に、重要開発テーマは、開発計画初期段階で、競
合との関係で強み弱みを知財的観点から徹底調査を行い、特許ポートフォリオの構築で強力な知財障壁を構築している。

systems include many key 知財の専門性を極めると共に、事業戦略、技術戦略を理解させることで、事業を牽引する知財を選別し、それを強い知財権とし

て獲得できる能力を備えた人材を育成しており、社内代理のみで審判や審決取消訴訟にも対応をしている。また、重点事業

technologies for satisfying ultra- に知財マイスター活動を展開し、自社の強みに知財障壁形成、他社製品との差別化によるビジネスを拡大している。

trace analysis needs in every

パテントレビューポータルサイトを構築し、他社特許のレビューをペーパレス化することにより、複数人がサイト上で共有可能し
ている。また、別テーマのレビューにて先に検討した特許があれば表示される他、申し送り機能を装備し、過去レビューの結果
が埋没しない仕組みを採用している。

aspect of the products, such as Pumping

technology
technologies for pumping, for Waveform
detection, for waveform analysis, Detection
technology
analysis
technology
for temperature control, and for
sampling liquids. Consequently, 高速液体クロマトグラフ 回診用システム 2019新型コロナウイルス 遺伝子解析装置（AutoAmp）

they are packed with patented

質量分析計 （MobileDaRt Evolution 検出試薬キット ※解析に必要な分注前処理工程から
（LCMS-9030） MX8 Version）  リアルタイムPCRまでを
 全自動化した装置

Temperature- Liquid
technologies, experience, and control sampling
expertise resulting from Shimadzu’ s technology technology

long history of offering LC systems.

Shimadzu Integrated Report 2022 34

 Pursuit of Science and Technology

Message from the CTO

Hiroto Itoi
Managing Executive Officer,
CTO

Working Closely with Customers to Solve we will promote the adoption of digital technologies, prepare
Challenges Using Advanced Technologies Is Part a digital technology platform where available Shimadzu
of Shimadzu’s DNA technologies are visible at a glance, differentiate between
technologies that should be promoted internally with high
Shimadzu is often referred to as a technology-based
confidentiality versus those that should be promoted via
company. This key trait of technological expertise being
partnerships with outside partners, and then actively disclose
handed down to successive generations regardless of
the latter. Within Shimadzu, we have been conducting
changing times has resulted in Shimadzu’
s corporate
technology fairs that provide an opportunity for Shimadzu
philosophy,“Contributing to Society through Science and
researchers and engineers to show others what they are
Technology,”permeating into the core of every employee’
s
working on, but now we are considering conducting similar
DNA. Our approach of working closely with customers to
events for people from outside Shimadzu.
continuously identify what they truly need and then offering
The second challenge is globalization. Open innovation
products to address those needs has also resulted in
sites in Japan include the Technology Research Laboratory
increasing our technological capabilities.
(within the Keihanna Science City), mainly used for basic
Furthermore, Shimadzu employees tend to be very
technology research, and the Healthcare R&D Center (within
sincere and earnest. For example, we often compete in
the Head Office compound), mainly used for product and
terms of performance specifications. But rather than simply
application development. These facilities have promoted
focus on improving performance values, we have also
partnerships with external parties, but the reality is that there
worked to improve our technology and quality in terms of
have been fewer cases of partnerships outside Japan.
fully utilizing available performance for practical applications.
Therefore, in addition to innovation centers where we can
That approach has resulted in Shimadzu developing highly
globally engage in application development, I want to
competitive products and services.
develop R&D and product development sites, where we can
As CTO, I will focus on advancing our technical
promote joint research and development collaborations
capabilities, which also serve as a source of Shimadzu
outside Japan.
competitiveness, and use those capabilities to solve societal
The third challenge is speeding up the pace of
challenges with science and technology.
development. I intend to solve this challenge by promoting
Promoting Information Dissemination, agile development. As suggested by the saying,“small start,
Digitization, Globalization, and Agile Development quick win,”new businesses are particularly well-suited to
agile development, so we will actively incorporate it in the
In our efforts to advance our technologies and develop
development process.
solutions, we will of course face some challenges, one of
Rather than digitization, globalization, and agile
which is disseminating information. In the past, we kept the
development functioning independently, they are closely
content of our research and development confidential, but
linked, such as by using the information visualized by
now we need to actively disseminate that information to
digitization to promote agile development globally. As CTO, I
promote open innovation or collaborations with outside
intend to promote these three measures and actively
partners, and engage in research and technology
disseminate technical information.
development with a more urgent sense of speed. Therefore,

35 Shimadzu Integrated Report 2022

 Message from Contributing to Society through Business Overview Financial and Sustainability Financial and 　
the President Science and Technology and Results Non-Financial Highlights Management Corporate Information

Focusing Efforts on Infectious Disease we promote active information exchanges by having the AI
Countermeasures, Healthcare, and Green interest group, which has about 300 participants, conduct AI
Innovation workshops. In addition to strengthening AI capabilities, we
intend to strengthen personnel capabilities related to the
We are currently involved in research and technology
brain/five senses, biotechnology, cells, and other areas.
development in the fields specified in the current medium-
term management plan, which are infectious disease Promoting Strategic Intellectual Property
countermeasures, healthcare, environmental/energy, Activities
materials, and infrastructure.
Intellectual property represents the results produced from
For infectious diseases, we will offer solutions for analyzing
research and development efforts, making it a critical
viruses, bacteria, and other pathogens, engage in joint research
management resource. We will improve our ability to acquire
with healthcare institutions, and create systems for fighting
and effectively use intellectual property that contributes to
infectious diseases. In addition, we will promote AutoAmp fully
business, while also diligently respecting and avoiding
automatic PCR testing systems as testing platforms for
infringing on the intellectual property rights of other
detecting a variety of viruses other than COVID-19.
companies. In addition to those basic measures, we will use
In the healthcare field, we will build a data platform that
intellectual property strategically, such as by IP landscaping
consolidates various measurement data related to health to
(patent landscaping) to employ intellectual property
promote improvements in health. We intend to create a
information for business strategies, disseminating
system that encourages behavioral changes by visually
Shimadzu’
s proprietary technologies as a technology brand,
showing health status based on measurement data and
expanding markets through standardization, or using an
offering advice. We have already started experiments to
open-closed strategy to differentiate our intellectual property.
validate the system for aging prevention and plan to expand
the scope of applicable diseases. We will also focus efforts Continue to Expect Great Things from Shimadzu,
on green innovation in the environmental/energy, materials, a Company that Contributes to Society through
and public infrastructure fields. Developing fossil-free fuels, Science and Technology
such as hydrogen and biomass, or developing batteries and
When I was an engineer, one thing I valued highly was using
new materials involved in the transition to electric vehicles,
ingenuity. Rather than major creative innovations,
will require advanced analytical and measuring instruments
the collective result of many small innovations can increase
and technologies. We will therefore actively participate in
the refinement level of products and provide a great sense of
various projects globally and promote working with partners in
accomplishment when the development process is finished.
respective regions. So far, R&D has been focused on
In my case, I was deeply involved in designing the GCMS-
healthcare, but we intend to actively invest in the above fields.
QP2010 and LCMS-8000 series systems, so I still feel a
Ensuring Diversity among Researchers and strong affection for those models.
Engineers and Strengthening Human Resources I would like Shimadzu personnel involved in research and
development to continually incorporate even slight
Needless to say, people are the source of technological
innovations to develop better products and solutions,
capabilities. Shimadzu researchers and engineers challenge
interact with people that have a variety of values, improve
themselves to try all sorts of things without fear of failure.
their own skills, and actively disseminate information.
However, it is also a fact that it is becoming more and more
With society currently changing at an unimaginable pace,
difficult to develop products and technologies by Shimadzu
the challenges in society are also becoming more global and
alone. We will therefore promote earning a doctoral degree
complex. I view that trend as a great opportunity for
or hiring people with previous experience, actively work with
Shimadzu to utilize its strengths. Consequently, continue to
or engage in open innovation with startup companies, and
expect great things from Shimadzu as we“Contribute to
strengthen measures to create new technologies based on
Society through Science and Technology”by working with
discussions and exchanges of ideas between people with
partners around the world to solve challenges in society.
diverse values and experiences. Recently, the trend toward
diversity has expanded, which is increasing the need for
greater diversity among researchers and engineers.
We will also strengthen our specialized human resources.
To strengthen our human resources with AI expertise, the
AI-specific organization at the Technology Research
Laboratory plays a central role in strengthening our AI
capabilities throughout the Shimadzu Group. For example,

Shimadzu Integrated Report 2022 36

 Pursuit of Science and Technology

Standardization Strategy
Changes in the Function of Organizations and Systems
Standardization (Establishing Rules) We established an international standardization committee
chaired by the Chief Standardization Officer (CSO) to promote
Thus far, standards have mainly been established to eliminate
standardization activities throughout the Shimadzu Group.
inferior goods and ensure consistent quality by deciding
The committee participates in creating and reviewing draft
product specification and performance requirements.
standards via various ISO and other committees.
However, the applicable scope of standardization has been
The committee also promotes deeper interactions with
expanding in recent years, from physical goods to services,
organizations in a variety of fields through committee
social systems, and other areas, and it has been changing to
activities of industry groups, such as the Japan Analytical
serve the role of establishing rules. Meanwhile, for companies
Instruments Manufacturers’Association (JAIMA).
and industries, standardization activities are becoming an
We have also prepared an international standardization
increasingly important tool for business strategies, such as for
assistance program for providing financial assistance to
creating new markets or ensuring a better competitive position.
promote specific international standardization measures.
Shimadzu has generated many new technologies over
the years based on the corporate philosophy“Contributing to
Society through Science and Technology.”Contributing to
Examples of Standardization
society even more than we do today, the technologies we
generate need to be used by as many people as possible. Measures
To accomplish that, we will engage in creating new markets
We are engaged in a wide variety of standardization
for products and services by using standardization activities to
activities. The following describes three examples.
establish rules. The aim is to ensure a competitive advantage,
such as by product differentiation based on intellectual property.
Using that approach to expand businesses will contribute to
(1) International Standardization of
sustained growth by increasing corporate value and Microplastic Measurement Methods
ensuring profitability. In recent years, pollution by marine plastics has been attracting
attention as a global environmental problem. In particular,
so-called microplastic particles less than 5 mm in diameter
Standardization Process have reportedly been significantly impacting the marine
biological ecosystem and human health. Although many
We consider the standardization process as an opportunity
researchers throughout the world are engaged in researching
to contribute to society and also as an important chance to
microplastics, procedures for each step from sampling to
create new markets and strengthen competitiveness.
instrumental measuring methods were not adequately shared
Therefore, the process involves the following three elements.
internationally. In particular, respective researchers were using
their own unique techniques for collecting and pretreating
microplastics collected from marine and other environmental
(1) Standardize rules in each (2) Standardize rules that help
important field achieve carbon neutrality waters, which made it difficult to compare and study
International
Standardization the situations in various regions.
Bottom-up approach
Strategy
Top-down approach Therefore, in order to unify the techniques used to extract
microplastics from collected samples, we have been participating
(3) Build a base for standardization
Create a base for executing strategy

(1) Standardize rules in each important field

We will contribute to sustained growth for society by standardizing rules for each
important technology and offering new value, such as safety and security, in the four
fields of pharmaceuticals, foods, environmental testing, and materials.
(2) Standardize rules that help achieve carbon neutrality
To achieve carbon neutrality and a carbon-free society, we are considering ways to use
renewable energies such as hydrogen or offshore wind power, carbon recycling, and
other measures. To realize such measures, we will standardize rules for technologies we
offer and establish them in society.
(3) Build a base for standardization
To promote standardization activities (1) and (2), we will engage in the following
measures.
• Strengthen relationships with outside organizations such as industry groups and
standardization organizations.
• Establish an organization within Shimadzu for promoting standardization.
• Develop human resources for implementing standardization activities.

37 Shimadzu Integrated Report 2022

 Message from Contributing to Society through Business Overview Financial and Sustainability Financial and 　
the President Science and Technology and Results Non-Financial Highlights Management Corporate Information

in a working group (ISO/TC147/SC2/JWG1) started in FY 2021 (3) Standardization of Pharmaceutical

to establish international standards for microplastic measurement Inspection Techniques in Partnership with
techniques. In addition to promoting standardization, we also the National Institute of Health Sciences
contribute to solving societal challenges by utilizing the network
of researchers we developed through standardization activities The National Institute of Health Sciences, which participates
to serve as a central“hub”for gathering information about in establishing the Japanese Pharmacopoeia and other official
microplastics research. pharmaceutical standards, is involved in developing and
establishing standards for evaluation technologies used to
(2) Standardization of Techniques for Analyzing ensure safe and reliable supplies of pharmaceuticals for new

Functionally Enhanced Agricultural Products modalities. Such evaluation technologies are based on accurate
measurement and analysis techniques. For Japan to remain
in Partnership with the National Agriculture
one of the few major drug development countries, it is important
and Food Research Organization
to maintain and strengthen Japan’
s capabilities for developing
At the NARO Shimadzu Laboratory, a joint laboratory new drugs that satisfy the healthcare needs of society, including
established by Shimadzu and the National Agriculture and drugs for as-yet-unknown infectious diseases. Shimadzu
Food Research Organization (NARO), we are developing contributes to the development of globally leading
techniques for quickly, conveniently, and accurately analyzing pharmaceutical inspection techniques by actively providing
functionally beneficial components contained in agricultural support for regulatory science measures by the National
products and foods. Standardizing analytical techniques and Institute of Health Sciences, including responding to revisions
regulations based on the joint research will support the made to ICH Guidelines.
development of functionally enhanced foods and beverages As a specific example, we are engaged in joint research
with high added value. Due to growing society interest in health, with the National Institute of Health Sciences with the aim of
demand for functionally enhanced foods and beverages is having techniques for using fluorescent X-rays to analyze
expected to increase in the future, not only in Japan but also elemental impurities in pharmaceuticals included in a future
around the world. To better respond to such demand, the edition of the Japanese Pharmacopoeia. The research
Japanese Ministry of Agriculture, Forestry and Fisheries has been project entitled“Research on Using X-Ray Fluorescence
promoting the export of agricultural products. By standardizing Spectrometry in the Japanese Pharmacopoeia to Control
analytical techniques and regulations based on such joint Elemental Impurities in Pharmaceuticals Based on ICH Q3D ”
research, Shimadzu is helping to promote the development is funded by a grant received in FY 2021 for“Research on
and widespread use of functionally enhanced foods and Japanese Pharmacopoeia Testing Methods, Etc.”from
beverages with high added value and is contributing to the Pharmaceutical and Medical Device Regulatory Science
achieving societies with long and healthy life expectancies. Society of Japan.

Standardization of Techniques and Regulations for Analyzing Functionally Beneficial Components

Food and
Achieves a
NARO NARO farms and cultivation testing sites beverage
society with long
throughout Japan companies
and healthy life
Grown at demonstration 400 varieties grown throughout Japan Restaurant
expectancies
Cultivating a wide variety of
farms throughout Japan industry, CVS, etc.
agricultural products
Ship functionally enhanced agricultural
products grown throughout Japan

NARO Shimadzu Kyoto Laboratory for Establish widespread Farmers and

Feedback for breeding and Food Innovation use of standardized manufacturers
cultivation technologies analytical techniques Widespread adoption of
- NARO Shimadzu Kyoto Laboratory and regulations functionally enhanced agricultural
for Food Innovation - products (new varieties)

Information about functionally

NARO beneficial components, etc. NARO Cultivation technology

Varieties Cultivated by NARO

Agricultural Obtain information
about components Standardize Prefectural
product and food Barley Potatoes
important testing and
database Analyzed daily Tea leaves analysis promotion
Rice Apples methods guidance centers
JIS and ISO standards

Shimadzu Integrated Report 2022 38

 Pursuit of Science and Technology

Message from the CSO (Chief Standardization Officer)

Fuminori Inagaki
Senior Managing Executive Officer,
In Charge of Standardization Strategy (CSO)
and Medical Regulatory Policy
Deputy in Charge of Corporate Strategy
Planning and Global Environmental
Management (GX)

Standardization has Become a Means of Ensuring up based on conformance with established regulations and
Competitive Advantage is now facing a sense of urgency to make up for being
significantly behind competitors.
Standardization activities originally started with unifying
That means Shimadzu cannot win against competitors by
standards for screws and other physical objects. However,
simply engaging in technology development. Competitiveness
over the past several decades it has evolved to mean
can only be ensured by developing technology in combination
establishing rules.
with standardization activities. Furthermore, the external
In recent years, companies in Europe and the United
business conditions related to standardization have been
States, but particularly in Europe, have identified
changing significantly as well. Due to advancements in new
standardization activities as a strategic means of creating
technologies, such as IoT, AI, and robotics, new markets
new markets and use standardization to strategically establish
are constantly being created. As a result, the scope of
international standards. Japan and other countries in Asia
standardization processes in technical fields is expanding to
have been slower to join that trend, but have been increasing
include business and market regulations.
their activity levels, such as by increasing the number of times
Our corporate philosophy is“Contributing to Society
serving as international secretariat of the ISO*1. For example,
through Science and Technology.”Shimadzu will contribute
even in Japan, the New Energy and Industrial Technology
to society by implementing standardization strategies to
Development Organization (NEDO) created a 2 trillion yen
establish new rules based on science and technology and
grant with the objective of achieving carbon neutrality by
ensure we remain competitive.
2050. Conditions for receiving that assistance include not
*1 ISO: International Organization for Standardization
only developing technology but also implementing strategies *2 ICH: International Council for Harmonisation of Technical Requirements for
Pharmaceuticals for Human Use
for ensuring its actual use in society and establishing
regulatory standards.
Accelerating Standardization Strategies in Four
Standardization is an area already very familiar to
Important Fields
the analytical & measuring instruments segment, Shimadzu ’
s
strongest business segment, because measurement and In 2019, Shimadzu implemented a variety of standardization
analysis are not possible until corresponding measurement measures, such as creating a committee for establishing
rules are established. For pharmaceuticals, for example, international standards. I was appointed chairman of
quality control inspection rules are already established by the international standardization committee in 2021, which
ICH*2 guidelines and pharmacopoeia effective in respective has been providing support for establishing international
countries and regions. Shimadzu has therefore developed standards throughout the Shimadzu organization.
products and analytical techniques according to those rules, Shimadzu’
s standardization strategy is based on open
and in some cases, analytical techniques developed by and closed strategies. Standardization involves an open
Shimadzu were even included in standards. In contrast, strategy of creating new markets by releasing technologies
competitors are strategically involved from the rules and intellectual properties for solving challenges of society,
establishment stage to establish rules that make using their but that approach might result in an outflow of technology.
own products the de facto rule, such as for inspection That means we will also use a closed standardization strategy
methods. Consequently, Shimadzu was often playing catch to protect differentiating technologies in truly critical areas by

39 Shimadzu Integrated Report 2022

 Message from Contributing to Society through Business Overview Financial and Sustainability Financial and 　
the President Science and Technology and Results Non-Financial Highlights Management Corporate Information

erecting intellectual property barriers to entry. If external feedback about Shimadzu’

s standardization
Standardization strategies will be strengthened particularly strategy is positive, I think it will help further accelerate
in four important fields, which are pharmaceuticals, foods, standardization measures.
environmental testing, and materials. Although Shimadzu standardization measures are still just
In the pharmaceuticals field, we will develop new analytical getting started, in the medium and long term I hope it will result
drug evaluation technologies and analytical systems that are in cultural reform, so that standardization is always considered
simpler and faster than previous methods. In the foods field, whenever a product or technology is being developed.
we will develop techniques for analyzing functionally beneficial So expect great things from Shimadzu in the future.
components in agricultural products, foods, and beverages.
In addition, we will work with partners around the world to
establish corresponding standards and rules.
In environmental testing and materials fields, our aim is to
standardize techniques and regulations for microplastic
analysis and establish new evaluation methods for alternative
energy development or for achieving a carbon-free society.
To enable implementation of standardization strategies
globally, we have also prepared capabilities for deploying
standardization activities in the United States. In the future,
Examples of Standardization
we will expand those activities broadly throughout the world.

Human Resources Development and 1. Phthalate Ester Screening Standard Established

The International Electrotechnical Commission (IEC) is an international
Organizational Preparations
standards organization that creates international standards for the
To implement standardization strategies, it is important to electrical/electronic technology fields. Shimadzu was involved in
establishing the IEC standard governing inspection of certain
develop human resources that can not only create draft
phthalate esters with reproductive toxicity concerns and then
standards, but also have the skills to conduct tough
developing a specialized Py-Screener system that can easily screen
international negotiations. It is also important to be globally samples based on that standard.
on the lookout for changes in regulations and rules. There is
no point creating instruments or software compliant with
existing regulations or rules if the regulations or rules will
change. If development personnel are unaware of rule
changes, it can prevent sales personnel from submitting
bids, which has actually occurred.
Currently, Shimadzu efforts to establish standards have
not been adequately systematized and have been dependent
on specific people. As the CSO, I will execute a human
resources development plan to significantly change that Py-Screener for Easy Measurement and Inspection of Samples to Check for the
Presence of Phthalate Esters Based on the Py-GC/MS Method
situation and create systems that enable us to implement
standardization strategies systematically as an organization.
2. Microparticle Size and Size Distribution
Integrating Standardization into Business Measurement Method Established
Processes Led by the National Institute of Advanced Industrial Science and
Technology, Shimadzu contributed to establishing ISO specifications
My goal as CSO is to integrate standardization activities into for nanoparticle analysis by the field-flow fractionation method, with
normal Shimadzu business processes. Shimadzu involvement starting from the issue identification stage.

That will first require reforming our awareness about

standardization. I don’
t mind if we begin with small steps,
but we need to start accumulating successful experiences.
If those successful experiences can be propagated across
the organization, I think our awareness will gradually change.
If that occurs, presumably we can systematize the
standardization process and incorporate it into normal
business processes. It is also my job to actively disseminate
Shimadzu standardization measures. Centrifugal Field-Flow Fractionation System that Centrifugally Sorts Nanomaterials
by Size for Measurement by Various Detectors

Shimadzu Integrated Report 2022 40

 Business Overview and Results

Business Overview
The Shimadzu Group creates innovative products and services with partners throughout the world,
particularly in businesses related to human health, safety and security of society, and industrial progress.
We strive to build a more prosperous society by using exceptional science and technology to contribute to
progress in a wide range of industries, such as pharmaceuticals, healthcare, environmental, energy,
semiconductors, and materials.

Aircraft Equipment Business Other Net sales

5% 1% 428.2
Industrial Machinery Billion yen
Business

13%
Ratio of Net Sales
by Segment

Medical Systems
Business Analytical & Measuring

16%
Instruments Business

65%
Other Japan
3% 47%
Other Asian
Countries
10%
China
Ratio of Net Sales
19%
by Region

Europe
8%
Americas
13%
Note: Sales percent values are rounded to the place value shown.

41 Shimadzu Integrated Report 2022

Message from Contributing to Society through Business Overview Financial and Sustainability Financial and 　
the President Science and Technology and Results Non-Financial Highlights Management Corporate Information

Analytical & Measuring Instruments Business

Supports research, technology development, and quality control in FY 2021
a variety of fields, including pharmaceuticals, foods, and materials
Net sales Operating income Overseas sales ratio
by offering high-performance analytical instruments.

• Liquid chromatographs 277.5 Billion yen 53.0 Billion yen 59 ％

• Mass spectrometers
Key
• Spectrometers
Products
• Environmental monitoring instruments
• Testing Machines

• Quality control in foods or pharmaceutical industries

• Early disease detection or drug development
Main • Environmental analysis, such as for water quality or
Applications air pollution
• Evaluating strength of various materials and non-destructive
observation of industrial products

• Manufacturers of pharmaceuticals, foods, materials, energy,

automobiles, research institutions
Users LCMS-8060NX Liquid Chromatograph Mass Spectrometer
• industrial machinery, etc. and government/
academic institutions

Medical Systems Business

Contributes to maintaining and improving the health of people by FY 2021
offering medical systems for supporting accurate diagnoses.
Net sales Operating income Overseas sales ratio

Key
• Fluoroscopy systems 66.9 Billion yen 6.1 Billion yen 43 ％
• Mobile X-ray systems
Products
• General Radiographic System

Main • Diagnostic X-ray imaging for pneumonia, bone fractures, etc.

Applications • Catheterization support for cardiovascular or cerebrovascular

Users • Hospitals and clinics

Trinias Angiography System

Industrial Machinery Business

Supports cutting-edge manufacturing by offering high-performance FY 2021
key components to contribute to industrial development.
Net sales Operating income Overseas sales ratio

Key
• Turbomolecular pumps 56.7 Billion yen 6.0 Billion yen 53 ％
• Hydraulic equipment
Products
• Industrial furnaces

• Generating vacuum environments for semiconductor

Main manufacturing processes
Applications
• Motive power sources for industrial vehicles, etc.

• Semiconductor manufacturing equipment manufacturers,

Users
industrial vehicle manufacturers, etc.
Turbomolecular Pump (Vacuum Pump) Hydraulic Gear Pump

Aircraft Equipment Business

Contributes to safety, comfort, and reducing stress on passengers FY 2021
by offering cutting-edge aircraft equipment.
Net sales Operating income Overseas sales ratio

Key
• Flight control systems
22.3 Billion yen 0.1 Billion yen 18 ％
Products

Main
• Controlling the aircraft attitude, etc.
Applications

Users • Japan Self-Defense Forces, aircraft manufacturers, etc.

Shimadzu Integrated Report 2022 42

 The following web page includes information about the topics listed below.
https://www.shimadzu.com/an/
Analytical & Measuring Instruments

Business Overview and Results

Analytical & Measuring Instruments Business

We contribute to solving challenges in society by using analytical and measuring
technologies to support manufacturing in food, pharmaceutical, and industrial fields, by
using cutting-edge life science research applications, such as for COVID-19 virus detection
and testing technologies, to screen for cancer or dementia using mass spectrometer
systems, and by analyzing water quality, air pollution, and other environmental samples.

Related SDGs

Masami Tomita
General Manager, Analytical & Measuring
Instruments Division

⿟ To achieve a sustainable society, we are expected to establish a safer and more secure society such as by developing new
drugs, implementing infectious disease countermeasures.
Business
⿟ To realize a carbon-neutral society, efforts of reducing our global environmental impact are ongoing, and environmentally friendly
Environment new materials are developed.
⿟ There is a need to reform the working style of research sites by preventing human error through automation and using AI/IoT to
achieve analysis accuracy as high as that of experts.
Given such business conditions, the Shimadzu Group contributes to solving challenges in society by offering analytical and
measuring instruments and services.

⿟ Declining birthrates and aging populations are resulting in higher costs for healthcare, social welfare, and other services.
Challenges Due to rising health consciousness, there is also increasing demand for ultra-early diagnosis capabilities, prevention,
in Society and health promotion.
⿟ With increasing global warming, there will be increasing water shortages, expanding use of renewable energies for achieving
carbon neutrality.
⿟ As high functional materials become more sophisticated, lighter weight, more fuel efficient, and easier to process, customers are
involved in complying with safety regulations for high functional materials and improving reliability.

Healthcare Field Environment and Energy Fields

Value
Provided ⿟ In pharmaceutical fields, we contribute to new drug ⿟ We contribute to achieving a carbon-free society by
development and productivity improvements not only by supplying systems and application software that are useful
providing technologies for advanced separation analysis and for developing clean energy technologies.
mass spectrometry but also by supplying AI/IoT-based data
analysis technologies. ⿟ We contribute to global environmental conservation by
supplying instruments for measuring microplastics and
⿟ In the food field, we help ensure the safety and security of various environmental pollutants.
food by testing for residual pesticides and water quality,
evaluating the presence of regulated substances contained ⿟ We contribute to reducing customer energy usage by
in packaging, and ensuring regulatory compliance. making Shimadzu products more energy efficient, making
consumables last longer, and so on.
⿟ We contribute to preventing the spread of infections by
developing or reinforcing the PCR testing reagents and
Materials Field
virus monitoring.
⿟ In the transport equipment field, where there are increasing
⿟ We contribute to maintaining people’
s health by developing
needs for inspection, analysis, and evaluation testing, we
technologies for the early diagnosis of diseases, such as
contribute to developing new materials that improve fuel
dementia, cancer, and lifestyle diseases, and by developing
efficiency and safety, by offering an extensive variety of
a health management system for managing all stages of
solutions based on a wide range of analytical and measuring
healthcare, from medical intervention to prognosis
technologies for satisfying the needs in the field.
management and nursing care.

Data Integrity
⿟ We offer systems for centralized control of analytical
instruments, testing information, and so on, that improves
the efficiency of testing and analysis processes and prevents
altering, replacing, or otherwise changing data.

LabSolutions DB/CS
Analytical Data Processing System

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the President Science and Technology and Results Non-Financial Highlights Management Corporate Information

Net Sales/Operating Income/Operating Margin Ratio of Net Sales by Region

■ Net sales (Left axis) ■ Operating income (Right axis) ー Operating margin
(Billion yen) (Billion yen) Other 4%
350 100
305.0 Other Asian
300 277.5 Countries 11%
248.6 80
250 241.4 236.2 19.1％ 18.7％
16.1％ 16.8％ 53.0 57.0 60
200 15.1％ Japan 41%
38.8 41.8 China 23%
150 35.8 40
100
20
50
0 0
2018 2019 2020 2021 2022(Target)* (FY)
* As disclosed on February 6, 2023 Europe 10% The Americas 12%

FY 2021 Results

Market Conditions/Key Measures and Results

⿟ Record net sales and operating income results were achieved. inert ultra-high-performance liquid chromatograph in those markets.
In addition, we formed a partnership with Tosoh Corporation, which
⿟ Sales of liquid chromatographs (LC) and mass spectrometer (MS)
has the largest market share of LC columns in Japan, and agreed to
systems were strong in pharmaceuticals, contract analysis, and
cooperate in selling Tosoh LC columns and jointly developing related
other healthcare fields, due to a trend toward domestic production of
technologies. We will contribute to solving challenges in those
pharmaceutical ingredients by various countries in response to
markets by offering optimal solutions.
pharmaceutical ingredient shortages caused by pandemic-related
supply chain disruptions and due to promotion of investments in new ⿟ We released an LCMS-2050 high-performance liquid chromatograph
drug development. that offers easy operability, high basic performance, and a compact
size. It is easy to operate even for those unfamiliar with using mass
⿟ In Japan, LC sales were strong in pharmaceutical fields. With
spectrometer systems and yet offers among the highest basic
investment levels recovering for manufacturing-related applications,
performance levels in the industry and space-efficient and energy-
testing machine sales increased for transport equipment and sales
efficient design for achieving energy-efficient laboratory operations.
increased for COVID-19-related products.
⿟ In terms of infectious disease countermeasures, we released
⿟ Outside Japan, LC sales were strong in pharmaceutical fields.
detection reagent kits for COVID-19 variants and an Amprep analyte
That resulted in higher sales in all major regions, with the overseas
pretreatment system for PCR testing of“pooled”samples acquired
sales ratio increasing by 1 point, year on year, to 59%.
from multiple individuals. We also established AdvanSentinel Inc.,
⿟ The aftermarket business sales ratio increased by 2 points, year on a joint venture with Shionogi & Co., Ltd., that will test for the
year, to 36%, due to an expanded line of consumable products and presence of COVID-19 in sewer water in an effort to establish sewer
increased sales of novel coronavirus detection kits. water monitoring systems in society as soon as possible.

⿟ Due to the accelerating pace of biological and medium-molecule drug

development activities in recent years, we released the Nexera XS

Novel Coronavirus-Related
Key Model New Products Products

Primer/Probe Mix for SARS-CoV-2

Mutation Assay (L452R)
LCMS-2050
High-Performance Liquid Chromatograph
Mass Spectrometer

Nexera XS inert Advanced i-Series

Ultra High Performance Integrated Liquid
Liquid Chromatograph Chromatograph
LCMS-8060NX
Liquid Chromatograph Mass Spectrometer System AutoAmp Fully Automatic PCR Testing System

Shimadzu Integrated Report 2022 44

 Business Overview and Results
Analytical & Measuring Instruments Business

Key Measures for FY 2022

Although countries around the world are steadily adjusting to Strengthen Businesses outside Japan
the new normal of living with the COVID-19 virus and resuming
We will strengthen business functions outside Japan to
the economic activities of society, future business conditions
expand businesses, especially in pharmaceutical, contract
remain uncertain due to semiconductor shortages and other
analysis, clinical testing, and other healthcare fields.
supply chain disruptions, Russia’
s invasion of Ukraine, and
In Europe and the United States, we will expand and
other factors. The Shimadzu Group will expand business by
strengthen the functions of innovation centers and application
capitalizing on the expanding demand in healthcare fields
laboratories to jointly develop pharmaceutical, contract
due to lively investment activity while also focusing efforts in
analysis, clinical, and other solutions together with strong
fields with medium- and long-term growth, such as by
partners in each region.
strengthening carbon neutrality measures.
Expand Businesses with Recurring Revenues and
Strengthen Key Businesses Promoting DX
We will strengthen the competitiveness of key product lines, We will steadily grow the aftermarket business by strengthening
mainly for liquid chromatographs and mass spectrometer the reagent business and investing in expanding
systems, and develop new markets to increase market consumables products. In addition, we will further expand
share, especially outside Japan. To develop new markets, the aftermarket business and improve profitability by using AI
we will release new products with unique features, such as or IoT to start businesses based on new sales methods,
the Nexera XS inert liquid chromatograph designed for nucleic such as pay-as-you-go or subscription-based payment
acid medicines and the LCMS-2050 mass spectrometer systems, and building/preparing a data platform required for
system that offers both high performance and a compact such businesses.
size, and also strengthen high-end products that offer high
resolution and high sensitivity. Measures to Prevent the Spread of Infectious Diseases
Due to growing analytical and measuring demand, we will
As we learn to live with the presence of COVID-19 in society,
expand our line of products such as fully automatic pretreatment
we will focus efforts on cooperating with academic institutions,
systems based on AI, IoT, robotics, or other technologies so
hospitals, healthcare institutions, and companies to develop
that even users unfamiliar with analytical and measuring
systems for fighting infectious diseases.
instruments can perform analysis easily.
We will use AdvanSentinel (based in Osaka City), a joint
In particular, to help conquer the pharmaceuticals market
venture established in partnership with Shionogi & Co., Ltd.
in North America, we intend to expand sales and market share
for monitoring viruses in sewer water, to engage in the sewer
with an extensive line of LC, MS, and other key products,
water monitoring business. That will contribute to understanding
including the Nexera UC series of supercritical fluid
the infection levels of COVID-19 and also other infectious
chromatographs developed in partnership with a
diseases and public health risks. Furthermore, we will also
pharmaceutical organization in the United States.
supply test kits for pathogens other than COVID-19 that can
be used with fully automatic PCR testing systems in order to
promote the effective use of these systems and to fight
infectious diseases.

Life Sciences and Pharmaceuticals

⿟ By investigating the metabolites, active ingredients, and other components contained in blood or urine, these instruments can be used for
applications such as cancer or dementia screening or for verifying the efficacy of drugs.
⿟ These instruments can measure the content of active ingredients and impurities in samples and can be used for quality control in a wide range of
areas, such as in pharmaceutical, biochemical, food, and environmental fields.

LCMS-9030 Liquid Chromatograph Mass Spectrometer System

Nexera Series TOC-100e

Ultra High Performance TOC Analyzer for LC-2030C NT Integrated Liquid Chromatograph
Data Analysis Liquid Chromatograph Purified Water Compatible with Slide-In Columns

45 Shimadzu Integrated Report 2022

 Message from Contributing to Society through Business Overview Financial and Sustainability Financial and 　
the President Science and Technology and Results Non-Financial Highlights Management Corporate Information

Foods and Chemicals

⿟ These instruments help ensure food safety by accurately measuring trace amounts of components contained in samples. They are used in a wide
range of areas, including food, environmental, chemical, electronic/semiconductor, and pharmaceutical fields.

GCMS-TQ8050 NX
Gas Chromatograph Mass Spectrometer System

Data Analysis

ICPMS-2030
ICP Mass Spectrometer
System Example of Analyzing Pesticides in Tea Leaves

Materials
⿟ These instruments are used to test the strength of a wide variety of items, such as rubber, plastic, or metal materials, or objects such as foods,
mobile phones, or automotive parts.

VR Image of Drone
Engine Parts

SPM-Nanoa AGX-V Series inspeXio

Scanning Probe Precision Universal SMX-225CT FPD HR Plus Nondestructive KRATOS ULTRA2
Microscope Testing Machine Inspection Machine Imaging X-Ray Photoelectron Spectrometer

Environmental and Energy

⿟ We provide instruments and services that help ensure compliance with environmental regulations as well as support for alternative energies.

Microplastics Collected
along the Seashore

EDX-7000
TNP-4200 IRSpirit Energy Dispersive X-Ray Fluorescence
Online Total Nitrogen and Total Phosphorus Analyzer Infrared Spectrophotometer Spectrometer

Shimadzu Integrated Report 2022 46

 Business Overview and Results
Analytical & Measuring Instruments Business

Contributing through Food

In recent years, as the needs for improving the safety and companies to increase the safety of foods and develop
functional benefits of foods and agricultural products functionally enhanced foods using chromatographs, mass
continue to increase, Shimadzu is actively partnering with spectrometer systems, and other analytical instruments.
public research institutions, local governments, and

Technologies Used to Support Food

Searching for Components with Functional Benefits
Provide support for the development of new foods with functional benefits by analyzing the beneficial components
contained in foods.
Comprehensively analyze functionally beneficial components in agricultural
products at KYOLABS

Measures for Analyzing Functional

• Develop and improve new varieties Collect agricultural product
Benefits of Food in Cooperation
Health with NARO
• Propose new foods with functional
benefits
and food component data in
database

Benefits of Measuring the Quantity of Components in Tea Leaves that are

Food Effective against Hay Fever
uV (x100,000) uV (x100,000)
Methylated catechin
1.00 Benifuki tea leaves 1.00 Less than the lower
effective against hay fever Yabukita tea leaves
limit of detection

0.50 0.50

0.0 0.0
Liquid Chromatograph Mass Spectrometer System 0.0 5.0 10.0 15.0 20.0 25.0 min 0.0 5.0 10.0 15.0 20.0 25.0 min

Analyzing Taste̶Quantitative Analysis of Aroma

Analyze characteristic aroma compounds in food for quantitative quality control

Numerically Detecting Undesirable Odor Compounds in Sake

Diacetyl*
Joy of
Food 食がもたらす喜び

Sensory Test of Odor

0 5.0 10.0 15.0 min
* Compound that smells like butter or yogurt
Gas Chromatograph Mass Spectrometer System
Evaluation by Gas Chromatograph

Rapid Analysis of Hazardous Substances

Quickly analyze substances in agricultural products, food additives, or food packaging that could harm human health

Previously New method Jointly developed with Miyazaki Prefecture

Food First in
the world
1. Fully automates process from residual pesticide extraction to analysis
2. Enables two different component analysis methods in one system
Safety and
Lipophilic pesticides analyzed by liquid
Security chromatograph mass spectrometry 500 components analyzed in
only 15 minutes

Lipophilic pesticides and water soluble pesticides

extracted with supercritical fluid extraction and analyzed
Water soluble pesticides analyzed by gas simultaneously by chromatograph mass spectrometry
chromatograph mass spectrometry 0 5 10 15 min

47 Shimadzu Integrated Report 2022

 Message from Contributing to Society through Business Overview Financial and Sustainability Financial and 　
the President Science and Technology and Results Non-Financial Highlights Management Corporate Information

Measures for Analyzing Functionally Beneficial Components in Foods

Started Advanced Research in Partnership NARO in various regions of Japan. The laboratory will also
with NARO build a component database to search for new functionally
beneficial components. The Shimadzu Group intends to
In August 2019, Shimadzu signed a joint research agreement
standardize solutions based on the results achieved by
with the National Agriculture and Food Research
the laboratory and deploy them throughout the world in an
Organization (NARO) and established the NARO Shimadzu
effort to develop agricultural products with higher added
Kyoto Laboratory for Food Innovation within Shimadzu’
s
value and also contribute to health and longevity in society.
Healthcare R&D Center for the purpose of analyzing
the functionally beneficial components in foods.
The NARO Shimadzu Kyoto
The laboratory is intended to develop new methods that Laboratory for Food Innovation
(NARO Shimadzu Laboratory)
can quickly, easily, and accurately analyze components with established in August 2019, located
within KYOLABS, a joint R&D
functional benefits (such as food fiber, polyphenols, and laboratory in the Shimadzu Healthcare
carotenoids) in about 20 types of green teas, vegetables, R&D Center at the Sanjo Works
Shimadzu Corporation Head Office
fruits, and other foods or agricultural products developed by (Kyoto)

Anticipation for Using Food to Achieve Longer and Healthier Life Expectancies,
and Activities for Solving Challenges of Society

Food and
Achieves a
NARO NARO farms and cultivation testing sites beverage
society with long
throughout Japan companies
and healthy life
Grown at 400 varieties grown throughout Japan Restaurant
demonstration expectancies
Cultivating a wide variety of industry, CVS, etc.
agricultural products farms throughout
Japan Ship functionally enhanced
agricultural products grown
throughout Japan
Farmers and
NARO Shimadzu Kyoto Laboratory for Develop and
Feedback for manufacturers
breeding and Food Innovation disseminate
Widespread adoption of
cultivation ～ NARO Shimadzu Kyoto Laboratory analytical
functionally enhanced
technologies for Food Innovation ～ methods agricultural products
Information about (new varieties)
functionally Cultivation
NARO beneficial NARO technology
components, etc. Varieties Cultivated by NARO
Agricultural Obtain information
about components Prefectural
product and food
Analyzed daily
Barley Potatoes testing and
database Tea leaves
Application News bulletins
promotion
Rice Apples
and method packages guidance centers

Analyzing Green
Tea with Science

1 Analyzing Theanine
2 Analyzing the Quantity of Catechins in
Tea Leaves 3 Clinical Study to Verify Dementia
Prevention Effects of Matcha

Why does drinking green tea have a calming Shimadzu has announced the results from Shimadzu has been researching the relationship
effect? That is because it contains theanine. joint research with NARO for analyzing the between green tea and dementia by
In addition to relaxing the brain, the polyphenol, a type of catechin, contained partnering with ITO EN, LTD. and MCBI, a
theanine contained in tea leaves is also in green tea. Green tea has been attracting startup company spun off from the
anticipated to prevent dementia. Analytical attention as a food with health benefits University of Tsukuba, to jointly conduct a
technology from the Shimadzu Group is due to the large amounts of catechin it s effect on
clinical study of matcha green tea’
contributing to that research. contains. Catechins reportedly offer benefits reducing mild cognitive impairment (MCI),
such as lowering cholesterol in the blood, the stage prior to dementia.
reducing body fat, preventing cancer, and
preventing dementia.

Shimadzu Integrated Report 2022 48

 The following web page includes information about the topics listed below.
https://www.shimadzu.com/med/index.html
Diagnostic Imaging Systems
Business Overview and Results

Medical Systems Business

We contribute to early detection and early treatment of a variety of
diseases, such as infectious diseases, cerebrovascular/cardiovascular
diseases, and cancers, at medical facilities around the world by
offering easy-to-use medical systems that reduce the stress on
patients, based on our state-of-the-art image processing technology.

Related SDGs

Kiyohito Sonoki
General Manager, Medical Systems Division

⿟ In developed economies, society needs to mitigate the risks of injury and illness associated with aging populations, and
demands medical care that places less stress on patients.
Business
⿟ Due to the improving health levels in many newly emerging economies and developing countries, they are now increasingly
Environment facing aging-related problems and are demanding more sophisticated healthcare technologies and diagnostic imaging systems
comparable to those of developed economies.

⿟ Achieve longer healthy life expectancies, so people can be healthy in their daily life.

Challenges ⿟ Provide more advanced examination technologies that can detect physical disorders as early as possible and identify the causes
of Society of diseases in more detail.

Diagnosis ⿟ To support efficient radiation therapy, we offer a tumor-

tracking system that, used in combination with a radiation
⿟ Fluoroscopy systems help maintain bone health through their therapy system, can significantly reduce the radiation dose
utilization for diagnosis of osteoporosis or for follow-up to normal tissue by efficiently radiating only cancer tissue.
Value examinations after artificial joint surgery. The systems can help
Provided reduce the stress on patients due to their image processing ⿟ In addition to X-ray technologies, we also offer near-infrared
technology for clearly showing endoscopic devices. light-based solutions for supporting surgical procedures in
breast surgery, plastic surgery, gastrointestinal, and dermatology
⿟ Dedicated head and breast PET systems can display high- departments.
definition images of brain tumors, epilepsy, breast cancer,
and other disorders, and even contribute to Alzheimer’ s or
other dementia research. Other
⿟ To promote clinical applications for analytical technology, we
⿟ For psychiatric disorders, we offer supplemental support for
are improving the practicality of techniques that can be used
differential diagnosis of depression using near-infrared light.
in the future to predict the risks of a wide variety of diseases
from a single drop of blood.
Treatment
⿟ We provide support for improving the efficiency of healthcare
⿟ We offer angiography systems with dynamic image processing administration, such as by offering returning patient reception
software based on cutting-edge AI deep learning technology systems and treatment fee payment systems to hospitals
that helps perform advanced minimally invasive procedures. and electronic medical records systems to clinics.
⿟ We improve the efficiency of radiological processes by including
AI functionality or power-assist technologies in products.

Diagnostic X-Ray Systems

Equipped with advanced image
processing technology, these
easy-to-use medical systems
reduce the stress on patients.

Trinias Angiography System Patient-Side R/F System Mobile X-Ray System

49 Shimadzu Integrated Report 2022

 Message from Contributing to Society through Business Overview Financial and Sustainability Financial and 　
the President Science and Technology and Results Non-Financial Highlights Management Corporate Information

Net Sales/Operating Income/Operating Margin Ratio of Net Sales by Region

■ Net sales (Left axis) ■ Operating income (Right axis) ー Operating margin
(Billion yen) (Billion yen) Other 7%
9.1％
80 76.0 8
69.1 70.2 66.9
66.9 7.9％ Other Asian
7.5％ 6.1 6.0 Countries 9%
60 6
5.0 China 7%
4.5％
40 3.4％ 4 Europe 5% Japan 57%
3.2
2.3
20 2
The Americas
15%
0 0
2018 2019 2020 2021 2022(Target)* (FY)
* As disclosed on February 6, 2023

FY 2021 Results

Market Conditions/Key Measures and Results

⿟ Despite flat sales, aftermarket business expansion, product mix ⿟ Outside Japan, sales of fluoroscopy systems increased in North
improvements, and other factors resulted in record operating income. America, where efforts were focused, but sales of mobile X-ray
systems used to diagnose pneumonia associated with COVID-19
⿟ In Japan, sales of fluoroscopy systems increased due to market
decreased, after increasing the previous year, in all but a few regions.
improvements from investment in capital equipment by healthcare
institutions funded by supplementary budget appropriations. Tumor- ⿟ Due to diligently strengthening the aftermarket business to increase
tracking systems for radiotherapy and the aftermarket business also sales of service contracts and parts, the aftermarket business sales
contributed to sales. ratio reached 36% (+3 points year on year).

Key Measures for FY 2022

We will increase sales of the new Trinias angiography system, which features the world’ s first AI-based image processing
Increase Sales of
engine, uses AI deep learning technology, and optimizes X-ray parameters to achieve over 40% lower X-ray dose levels than
Angiography Systems
the previous model. We will also promote sales of a subscription service for ensuring the software is regularly updated.

We will increase sales of the new FLEXAVISION F4 package, which is one of the
smallest fluoroscopy systems available in the industry and yet features a large flat panel
detector with a large field of view, making it suitable for even small and medium
Increase Sales of healthcare facilities. In addition to hardware, we will also strengthen sales of software,
Fluoroscopy Systems such as for measuring bone mineral density with AI technology. Furthermore, we will
expand the business globally by strengthening sales of patient-side operable Left: FLEXAVISION F4 package
fluoroscopy systems in the United States and expanding the line of domestically made Right: Flat Panel Detector with Large Field
models in China. of View

Improve Healthcare We will expand sales of products for improving the operating efficiency of healthcare institutions based on working practice
Operating Efficiency reforms, such as patient reception systems and automatic payment systems.

Expand Businesses We will expand the aftermarket business by expanding service areas and applicable products and by offering remote
with Recurring inspection/operation services. We will also develop application software, such as diagnostic support software, and promote
Revenues subscription-based sales.

Solutions for Supporting Healthcare and

Improving Healthcare Operating Efficiency
PET systems are offered for producing This tumor-tracking system
high-definition imaging of brain tumors, supports radiotherapy by
epilepsy, and breast cancer. pinpointing X-ray irradiation
on tumors in organs that
move due to breathing.
Bone Mineral Density Tumor-Tracking System for
Measurement Radiotherapy
Dedicated Head and
General Radiography System Breast PET System

Shimadzu Integrated Report 2022 50

 The following web page includes information about The following web page includes information
the topics listed below. about the topics listed below.
https://www.shimadzu.com/hydraulic/index.html https://www.shimadzu.com/industry/index.html
Hydraulic Equipment Vacuum Equipment/Industrial Machinery
Business Overview and Results

Industrial Machinery Business

We contribute to industrial development by supplying high-quality
and high-performance key components, such as turbomolecular
pumps and equipment and parts equipped with sophisticated
hydraulic technology.

Related SDGs

Masahiko Tanaka
General Manager, Industrial Machinery
Division and Fluidics Systems Division

⿟ As the demand for semiconductors continues to increase in response to increasingly widespread adoption of IoT and 5G
technologies underlying the trend toward more extensive use of information in society, the market for turbomolecular pumps
Business used in semiconductor manufacturing equipment is expected to expand as well.
Environment ⿟ Demand for hydraulic equipment used in forklifts, construction machinery, and agricultural equipment is also expected to expand.

⿟ To contribute to industrial development, we will release new products based on innovative technologies and develop new
market fields.

⿟ Develop sustainable and resilient infrastructure.

Challenges
of Society ⿟ Implement global measures to achieve a carbon-free society.

⿟ We will promote sustainable infrastructure development by offering key products and manufacturing equipment that contribute to
a broad range of advanced manufacturing industries, such as by offering turbomolecular pumps used as key components in
semiconductor manufacturing equipment, gear pumps used as hydraulic power sources in forklifts and construction/agricultural
machinery, and industrial furnaces for ceramics, expected to be increasingly demanded for use as electric vehicle circuitry heat
Value sink or insulation materials.
Provided

Turbomolecular Pump

⿟ We contribute to the expansion of renewable energies by supplying glass winders for winding glass fiber used to reinforce wind
turbine blades.

Industrial Machinery

Turbomolecular pumps are These furnaces are used to Glass winders are able to wind up glass Balancers measure and provide basic
vacuum pumps used to create harden metals, ceramics, or fibers used to make electronic circuit data about how precisely components
the ultra-high vacuum environment other materials by heat- boards and wind turbine impellers. are balanced (how uniformly mass is
essential for manufacturing treating them in a vacuum or distributed throughout rotating bodies
semiconductors and panels. pressurized environment. and shafts).

Turbomolecular Pump Industrial Furnace Glass Winder Balancer

51 Shimadzu Integrated Report 2022

 Message from Contributing to Society through Business Overview Financial and Sustainability Financial and 　
the President Science and Technology and Results Non-Financial Highlights Management Corporate Information

Net Sales/Operating Income/Operating Margin Ratio of Net Sales by Region

■ Net sales (Left axis) ■ Operating income (Right axis) ー Operating margin
Other Asian Other 0%
(Billion yen) 62.0 (Billion yen)
Countries 10%
60 56.7 10

50 45.4 45.1 8
43.0 10.5％ 10.0％
9.8％
40 8.5％
6
6.0 6.2 China 24% Japan 47%
30
7.4％ 4
4.5
20 3.7 3.4
10 2 Europe 5%

0 0 The Americas
2018 2019 2020 2021 2022(Target)* (FY) 14%
* As disclosed on February 6, 2023

FY 2021 Results

Market Conditions/Key Measures and Results

⿟ Driven by turbomolecular pump and hydraulic equipment sales, ⿟ Hydraulic equipment demand increased for industrial vehicles,
the industrial machinery business segment achieved record results in construction machinery, and agricultural equipment fields, resulting in
terms of both net sales and operating income. significantly higher net sales. Demand is also increasing for Serenade
SRP300 series low-noise gear pumps, which are up to 30% quieter
⿟ Sales were strong for turbomolecular pumps used in semiconductor
than previous models, due to orders from major forklift manufacturers
manufacturing equipment. Turbomolecular pump demand also
in response to the trend toward electric forklifts in Europe.
increased for glass construction materials, thin-film solar cells, and
other thin-film manufacturing equipment, resulting in record net ⿟ Sales of glass winders increased due to expanding demand for glass
sales. Aftermarket sales increased 12%, year on year, due to fiber used in circuit boards.
expansion of operating locations.

Key Measures for FY 2022

Increase Market Share of By introducing new products with superior technology compared to competitor products, we will expand our market
Turbomolecular Pump share of major semiconductor manufacturing equipment manufacturers in Japan, Europe, and the United States. We will
Business also continue focusing efforts on expanding the aftermarket service business globally.

In order to satisfy the increased demand for turbomolecular pumps used in semiconductor manufacturing equipment, we
Expand Turbomolecular
will increase turbomolecular pump production capacity by making capital equipment investments in Hadano Works
Pump Production Capacity
(Kanagawa Prefecture).

Expand Market Share for In the United States, Europe, and China, which are major markets for hydraulic equipment, we will focus efforts on
Hydraulic Equipment increasing market share by offering low-noise and high-efficiency models.

Due to the expanding adoption of electric vehicles, demand is expected to expand for products such as industrial
Strengthen Measures for furnaces used to manufacture ceramics for electric circuitry heat sink materials or balancers used to measure eccentricity
Automotive Industry between the center of gravity and center of rotation in motor rotors. We will expand products and services for electric
vehicles and strengthen measures for automotive applications.

Hydraulic Equipment

These hydraulic power sources are used for a wide range of applications, such as forklifts and other industrial vehicles, construction machinery, special-
purpose vehicles, and agricultural equipment.

Hydraulic Gear
Pump

Hydraulic Gear Pump Power Package Forklift

Shimadzu Integrated Report 2022 52

 The following web page includes information about the topics listed below.
https://www.shimadzu.com/aircraft/index.html
Aircraft Equipment/Marine Devices/Magnetometers
Business Overview and Results

Aircraft Equipment Business

We contribute to ensuring a safe and secure society by offering
components, parts, and systems that integrate advanced
technologies with sophisticated precision machining technologies.

Related SDGs

Susumu Yamamoto
General Manager, Aircraft Equipment Division

⿟ The global COVID-19 pandemic has changed the way people live their lives. In the aircraft industry, the previous strong sales
fueled by expanding global markets have turned a corner and are now expected to undergo market changes that will be difficult
Business to predict for some time to come.
Environment ⿟ Nevertheless, there will be even greater demand for safely and securely transporting people and goods globally. Therefore, we
believe there will be increasing needs for Shimadzu Group’s advanced manufacturing technologies and cutting-edge technologies
for ensuring security.

⿟ Improve the resilience of social infrastructure and improve safety, environment-friendliness, and comfort in the mobility field.
Challenges
in Society

⿟ Technologies for developing smaller, lighter, and electrically powered flight control systems contribute to reducing
the environmental impact of aircraft.
⿟ Air management technology used for air conditioning contributes to providing a more comfortable cabin atmosphere.

⿟ Cockpit display technology contributes to improving the safety and reliability of flying.
Value
⿟ Underwater magnetic technologies contribute to improving marine and shipping safety.
Provided
⿟ Quality control throughout the entire manufacturing and service value chain serves as a key means of ensuring the safety of aircraft.

Products for Commercial Aircraft and Defense Businesses

The flight control system controls the lift, attitude, and other aspects of aircraft during flight. Its high-quality mechanical technology and highly reliable
electronic control technology help ensure flight safety.

パワー・ドライブ・ コントロール・
Power drive Control valve
ユニット・ギヤボックス
unit gearboxes バルブ・
modules
モジュール

スタビライザ
Horizontal ・トリム・
stabilizer Flap actuators
trim actuator
アクチュエータ

アングル・ フラップ・
Angle
ギヤボックス
gearbox アクチュエータ

53 Shimadzu Integrated Report 2022

 Message from Contributing to Society through Business Overview Financial and Sustainability Financial and 　
the President Science and Technology and Results Non-Financial Highlights Management Corporate Information

Net Sales/Operating Income/Operating Margin Ratio of Net Sales by Region

■ Net sales (Left axis) ■ Operating income (Right axis) ー Operating margin
(Billion yen) (Billion yen)
30.0
30 27.3 28.6 1.0
The Americas
0.9 and Other 18%
24 22.3 23.0 0.8
0.8 3.0％
18 0.4％ 3.1％ 0.5％ 0.7 0.6
2.6％
Japan 82%
12 0.4

6 0.2
0.1 0.1
0 0.0
2018 2019 2020 2021 2022(Target)* (FY)
* As disclosed on February 6, 2023

FY 2021 Results

Market Conditions/Key Measures and Results

⿟Defense Business ⿟Commercial Aircraft Equipment ⿟Achieved a Profit
Sales decreased significantly due to cyclic Business Despite the severe business conditions,
low demand and a reactionary sales decline Demand decreased due to the COVID-19 profitability was achieved by improving
after the large projects in the previous year. pandemic, but appears to have the cost structure and selectively focusing
bottomed out. on profitable areas.

Key Measures for FY 2022

To ensure profitability given the severe business conditions that are predicted to continue, designate whether to expand, cultivate,
Select and Focus
or withdraw from each product category, to select and focus on specific target products, regardless of whether they are for the
on Target Fields
defense or commercial aircraft equipment business.

In February 2020, Shimadzu released an underwater optical wireless

communication modem. The product uses technology cultivated for magnetic
technology to enable high-speed wireless communication underwater, which was
previously difficult to achieve.
The Japan Agency for Marine-Earth Science and Technology (JAMSTEC) helped
conduct a demonstration experiment to validate the system by installing
the Shimadzu underwater optical wireless communication modem in an
autonomous unmanned submersible device to automatically harvest data
Promote New
transmitted by the modem from a measurement system set up on the seafloor. It
Business
was the world’ s first experiment to successfully recover data by“harvesting*.”
Shimadzu will continue the research collaboration with JAMSTEC and R&D of
the underwater optical wireless communication modem for use in a wide variety
Diagram of Data Harvesting Process
of applications that will lead to“green innovation,”such as for installation,
inspection, or other underwater operations for offshore wind power facilities or
other underwater infrastructure.
* Harvesting: Process of recovering accumulated data, energy, etc. In this case, only data is
harvested from the measurement system set up on the seafloor.

Products for the Defense Business

Air management systems are used Shimadzu display systems use sophisticated
to adjust the air temperature and electronic and optical technologies to display
pressure levels inside aircraft. They various flight information overlaid on the external
contribute to ensuring a comfortable view in head-up (HUD) or head-down (HDD)
environment based on analysis and projection-type display systems. These systems
evaluation technology that contribute to reducing the burden on pilots and
continuously optimizes the increasing safety.
onboard environment. Air Management System Cockpit Display

Shimadzu Integrated Report 2022 54

 Financial and Non-Financial Highlights

Financial and Non-Financial Highlights

Financial Information

Net Sales/Overseas Sales Ratio Operating Income/Operating Margin

■■ Net sales (Left axis) ー Overseas sales ratio (Right axis) ■■ Operating income (Left axis) ー Operating margin (Right axis)
(Billion yen) （%） (Billion yen) （%）

450 428.2 60 70 30
391.2 393.5 63.8
376.5 385.4
53.0 50 60 25
360 50.2 50.4 50.8 49.7
49.0
50 44.5
40 42.8 41.8 20
270 40
30 15
180 30 14.9
20 12.6 10
20 11.4 11.4 10.9
90 10 10 5

0 0 0 0
2017 2018 2019 2020 2021 (FY) 2017 2018 2019 2020 2021 (FY)
Driven by the measuring instrument and industrial machinery businesses, net sales were a Increased sales and profitability improvements resulted in operating income of 63.8 billion yen
record 428.2 billion yen. and a 14.9% operating margin, which were both record levels.

Profit Attributable to Owners of Parent/

Profit per Share (EPS) ROE/ROA
■■ Consolidated net income (Left axis) ー EPS (Right axis) ー ROE ー ROA
(Billion yen) (Yen) （%）

50 47.3 180 15
13.2
11.7 11.7 11.3
40 160.49 150 10.8
36.1
32.5 31.8 120
29.8 10
30 122.52
110.41 107.84 8.9
101.26 90
7.5 7.6 7.3 7.7
20
60 5
10 30

0 0 0
2017 2018 2019 2020 2021 (FY) 2017 2018 2019 2020 2021 (FY)
Increased operating income and other factors resulted in record profit of 47.3 billion yen and Due to the record net income and other factors, ROE increased 1.9 points (year on year) to
160.49 yen per share (EPS). 13.2% and ROA by 1.2 points (year on year) to 8.9%.

Operating Cash Flow/Investment Cash Flow/

Free Cash Flow Dividend/Payout Ratio
■■ Operating cash flow ■■ Investment cash flow ー Free cash flow ■■ Cash dividend (Left axis) ー Payout ratio (Right axis)
(Billion yen) (Yen) （%）

80 50 48 50
63.8 63.4
60 40 40
41.2 39.5 57.3 34
40 29.5 49.9 30
30 28 30
30.1 24 29.9
20 6.6 27.8 27.8
23.4 25.4
20 23.7 20
0
-6.0 10 10
-20 -11.1 -13.9
-16.1
-22.9
-40 0 0
2017 2018 2019 2020 2021 (FY) 2017 2018 2019 2020 2021 (FY)
Cash flow from operating activities resulted in 63.4 billion yen of income and cash flow for The basic policy for shareholder returns is to maintain stable dividends based on a target 30%
investing activities resulted in 6.0 billion yen of expenditures. Consequently, free cash flow was total shareholder return. FY 2021 cash dividends increased for the eighth consecutive year to
57.3 billion yen. 48 yen and the payout ratio increased to 29.9%.

55 Shimadzu Integrated Report 2022

 Message from Contributing to Society through Business Overview Financial and Sustainability Financial and 　
the President Science and Technology and Results Non-Financial Highlights Management Corporate Information

Non-Financial Information
R&D Expenses (Testing and Research Expenses +
Industrial Application Research Expenses)/ Number of Patent Applications/
Ratio of R&D Expenses to Net Sales Number of Patents Held
■■ R&D expenses (Left axis) ー Ratio to net sales (Right axis) ー Number of patent applications (Japan) ー Number of patent applications (Outside Japan)
(Billion yen) （%） ー Number of patents held (Japan) ー Number of patents held (Outside Japan)

20 15 (Patents)

16.6 16.9 16.3 5,000 4,447 4,592

15.5 15.7 4,340
15 3,807 3,917
4,000
10
2,616 2,859
3,000 2,470
10 2,209 2,308
5 2,000 853
579 779 702 740
5 4.4 634 582
4.1 4.2 4.0 3.8 1,000 488 575 549

0 0 0
2017 2018 2019 2020 2021 (FY) 2017 2018 2019 2020 2021 (FY)
R&D expenses increased by 0.6 billion yen (year on year) to 16.3 billion yen despite impacts The number of patents held increased by 353 to 6,776 patents. In the future, we intend to
from the COVID-19 pandemic. Given that 51.0 billion yen of investments are specified in the acquire more patents based on our basic policy of creating new value based on intellectual
medium-term management plan (FY 2020 to 2022), we will continue to actively implement R&D property generated from research and development.
activities in the future. *1 T he number of patents held temporarily decreased in FY 2020 due to taking stock of patents with low probability of being
used in products.
*2 The basis for the number of patent applications outside Japan was changed from the total number of inventions the
previous year to the cumulative number of patent applications in all countries in FY 2021.

Percentage of Women in Management Positions Percentage of Women Employees (Non-Consolidated)

ー Consolidated ー Head Office ー Group companies in Japan ー Group companies outside Japan ■ Men (Left axis) ■ Women (Left axis) ー Percentage (Right axis)
（%） (Employees) （%）

3,200 3,005 3,080 3,111 3,100 3,076 30

25
20.5 19.7 20.8
20 18.7 18.1
2,400 19.9 20.4
18.3 19.1 20
16.9
15
9.6 9.6 10.2 1,600
10 8.5 8.5
769 787 10
688 734
4.2 4.1 800 610
5 3.3 3.5
2.2
2.6 2.9 3.6
2.3 2.4
0 0 0
2017 2018 2019 2020 2021 (FY) 2017 2018 2019 2020 2021 (FY)
We are actively implementing diversity management practices in an effort to better generate Due to our aspiration for becoming a company where women can work for a long time, the
value in society through innovation and by acquiring talented human resources, regardless of percentage of women employees has been increasing each year, reaching 20.4% in FY 2021.
nationality or gender. The percentage of consolidated Shimadzu Group women employees in By promoting even more working practice diversity in the future, we will create workplace
management positions increased 0.6 points (year on year) to 10.2% in FY 2021. cultures where all employees are free to proactively work in their own way.

Shimadzu Group (Worldwide) Shimadzu Group (Worldwide) CO2 Emissions and

CO2 Emissions from Energy Contribution to Reduction in CO2 Emissions
■■ Shimadzu Group CO2 emissions (Left axis) ー CO2 emissions per unit of net sales (Right axis) ー Contribution level of reduction in CO2 emissions ー Shimadzu Group CO2 emissions
（t-CO2） (t-CO2/billion yen) （t-CO2）
49,398
50,000 44,958 200 60,000 55,166
51,725
49,398
38,548 50,000 44,958 44,688
40,000
34,468 150
40,000
30,000 131 38,688 38,548
115 100 30,000 33,820 34,468
20,000 100 18,321
89 18,321
20,000
50
10,000 10,000
43
0 0 0
2017 2018 2019 2020 2021 (FY) 2017 2018 2019 2020 2021 (FY)
In April 2022, the Shimadzu Group set a new target of achieving net-zero CO2 emissions from The Shimadzu Group is committed to improving the environmental friendliness of
business activities by 2050 and is further strengthening corresponding measures accordingly. products in an effort to minimize our impact on the global environment. In particular,
CO2 emissions during FY 2021 decreased 47.8% (year on year) to 18,321 tons, due to products that achieve especially high environmental performance are offered to
changing to electric power supplies generated from renewable energies. customers as certified Eco-Products Plus products. During FY 2021, these models
reduced CO 2 emissions generated at customer operations by 55,166 tons.

Shimadzu Integrated Report 2022 56

 Sustainability Management

Establishing the Shimadzu Group

Sustainability Charter and Identifying
Important Issues (Materialities)
International COVID-19 countermeasures that began in 2019 the personal life of each individual but also the sustainability
have restricted various activities and resulted in significantly of organizations and societies.
reconsidering our previous lifestyle habits. Furthermore, Faced with such circumstances, the Shimadzu Group
the global increase in natural disasters associated with specified a new approach for sustainability management and
climate change and the rapid price increases for natural important issues (materialities) and announced them to
resources and energy associated with geopolitical risks have stakeholders within and outside the organization.
generated significant interest in how they will affect not only

Shimadzu Group Sustainability Charter Established

In recognition of how various societal challenges can impact our sustainability as an organization.
society, the economy, and Shimadzu, the Shimadzu Group Therefore, focusing on the“Strategic CSR”areas defined
performed a materiality assessment based on in our previous CSR Charter as“creation of shared value”
the CSR Charter established in 2017 to identify important (CSV), we clarified specific topics related to contributing to
issues that should be prioritized. Nevertheless, in light of the the sustainability of society and the Shimadzu Group. After
growing interest in the sustainability of society, including five months of deliberation by the Executive Committee and
Earth’
s environment, we believe that redefining the business Board of Directors, we finally established and announced a
areas where the Shimadzu Group can contribute and Shimadzu Group Sustainability Charter in September 2021.
engaging in them in a more prominent way will help increase

Process of Determining Materiality

To establish the Shimadzu Group Sustainability Charter, Shimadzu Group Sustainability Charter was established by
in addition to considering the corporate philosophy, decision of the Board of Directors in September 2021.
management principle, the medium-term management plan The specific topics cited in the Shimadzu Group
that started in 2020, and other important policies and plans Sustainability Charter are considered important materialities
for the Shimadzu Group, we also considered important rules, for the Shimadzu Group.
concepts, and topics related to sustainability, ESG, and To implement the charter in actual practice throughout
SDGs in light of global megatrends. the Shimadzu Group, the Executive Committee, respective
Firstly, the Board of Directors confirmed the direction in divisional departments, and respective corporate
which to take the Shimadzu Group based on a broad administrative departments repeated discussions and defined
perspective. Then the Executive Committee, respective the content of measures and corresponding KPI values for
divisional departments, and respective corporate administrative each materiality in terms of detailed company internal
departments deliberated specific materialities. Eventually, the policies and regulations to promote implementation activities.

Starting Point of Review Confirm and Deliberate Direction Establish Charter Define Details

To implement the charter in actual

Consider specific topics based on
Specify a Shimadzu Group practice throughout the Shimadzu
measures indicated by the
Sustainability Charter that Group, define the content of
Corporate Philosophy corporate philosophy and
specifies the fundamental measures and corresponding KPIs
Management Principle management principle as three
concepts for Shimadzu Group for each materiality in terms of
CSR Charter main pillars, while also being
sustainability management and detailed company internal policies
mindful of our approach to ESG
that comprises three main pillars. and regulations and promote
and our key characteristics.
implementation activities.

Consider applicable circumstances Consider perspectives Consider specific KPIs

within and outside Shimadzu within and outside Shimadzu

Global megatrends (SDGs, etc.) Board of Directors Executive Committee Executive Committee

Respective divisional departments and corporate Respective divisional departments and corporate
Medium-term management plan (FY 2020 to FY 2022)
administrative departments administrative departments

57 Shimadzu Integrated Report 2022

 Message from Contributing to Society through Business Overview Financial and Sustainability Financial and 　
the President Science and Technology and Results Non-Financial Highlights Management Corporate Information

Shimadzu Group Sustainability Charter

Create a Bright Future
SHIMADZU CORPORATION will engage in company activities and fulfill social responsibilities based on two principles —
“solve the challenges of society through business operations ”and“engage in activities as a responsible member of
society”—while working towards harmony between the Earth, society, and people.

https://www.shimadzu.com/sustainability/concept/index.html

Relationship between Materialities and ESG in the Shimadzu Group Sustainability Charter

Materialities in the Shimadzu Group Sustainability Charter

Contributing to the Well-being of Mankind

Contributing to Industry and Society Corporate Governance
and the Earth

Measures for achieving carbon neutrality

Environment
Consistent with circular economy
(E)

Contributing to conservation of biodiversity

Initiatives to achieve advancements in science and technology

Contributing to people’
s health, fighting infectious
Contributing to advancements in industry
diseases, and managing employee health

Society Achieving a society with long and healthy life

Contributing to realizing a safe and secure society
(S) expectancies

Strengthening intellectual property strategies

Responsible member of society

Strengthening corporate governance

Building the Group governance

Governance
(G) Strengthening compliance and building risk
management system

Mitigating risks of natural disasters

Organization for Implementing Sustainability Management

To build an organization for implementing sustainability Board of Directors
management, a new Sustainability Meeting chaired by the
President was established and the Risk Management and Executive Committee
Corporate Ethics Meeting that previously drove corporate
governance and compliance measures and the Environmental
Meeting that has been implementing environmental Sustainability Meeting
management were included in the organization. (Chair: President; Secretariat: Corporate Strategy
During Sustainability Meeting, top executive managers Planning Dept.)
express their commitment to all Group companies and Risk Management and Environmental
then share important challenges within and outside the Corporate Ethics Meeting
company regarding sustainability management measures, Meeting (Secretariat: Global
discuss specific measures for key topics or other (Secretariat: General Environmental
Administration Dept.) Management Dept.)
materialities, progress made toward achieving each
corresponding KPI, and other issues, and then report the
The Sustainability Meeting consists of the Shimadzu Chairman, President, administrative
results to the Board of Directors. corporate executive officers, Audit & Supervisory Board members, divisional general
managers, corporate administrative department general managers, representatives from
affiliated companies in and outside Japan, and others.

Shimadzu Integrated Report 2022 58

 Environmental Report (E)

Shimadzu is Engaged in Solving Various

Environmental Challenges in an Effort to
Achieve Development and Growth
for a Sustainable Society
The world is facing increasingly serious environmental aim of developing and growing a sustainable society under
problems caused by climate change, including the the following five items. In addition, we will strive to fulfill
occurrence of extreme weather events such as large our commitments and disclose information to the global
typhoons, heavy rains and flood damage, as well as pollution community, including signing the United Nations Global
caused by waste and chemical substances. As various Compact, which sets principles such as environmental
efforts to address environmental issues accelerate around responses advocated by the United Nations, supporting
the world, many countries and regions have announced the recommendations of the Task Force on Climate-related
long-term national goals for decarbonization, accelerating Financial Disclosures (TCFD), which calls for disclosure of
the shift to a circular economy that aims to maximize the impact of climate change on our business, obtaining SBT
the value of resources and products, minimize resource certification, which indicates that our business activities' CO 2
consumption, and reduce waste generation. emission reduction targets are based on scientific evidence,
The Shimadzu Group is responding to environmental and becoming a member of RE 100, which declares that
and social changes, such as climate change and resource the electricity used in our business activities will be 100%
depletion, and is engaged in a variety of activities with the derived from renewable energy by 2050.

Five Commitments for Environmental Management by the Shimadzu Group

(Eco-First Commitment)

1 We will implement measures for addressing climate change.

2 We will implement measures for establishing a recycling-oriented society.

3 We will develop and supply products and services that promote global environmental conservation.

4 We will engage in biodiversity conservation activities.

5 We will actively engage in environmental conservation activities involving each employee.

As an Eco-First Company, Shimadzu Engages in Advanced and Unique Environmental Initiatives

In October 2020, Shimadzu was certified as an Eco-First Company. all certified Eco-First companies included as committee members. In
Under the Eco-First Program, the Japanese Minister of the April 2022, Shimadzu Chairman Ueda was appointed as committee
Environment certifies environmentally leading companies operating chair. By taking a more active and progressive role as committee chair,
environmentally progressive and unique businesses that have large Shimadzu will help communicate the significance and value of the
spillover effects, and that have declared a commitment to the Minister Eco-First Program to a broader
of the Environment that the company will engage in measures to portion of society and contribute to
protect the environment, such as global warming countermeasures solving environmental challenges in
and waste/recycling measures. Since the program was started in society by pursuing more advanced
2008, 56 companies in a variety of industries have been certified as and unique initiatives and by
Eco-First Companies (as of June 2022). strengthening the cooperation and
In 2009, an Eco-First Promotion Committee was established with coordination of all companies.

59 Shimadzu Integrated Report 2022

 Message from Contributing to Society through Business Overview Financial and Sustainability Financial and 　
the President Science and Technology and Results Non-Financial Highlights Management Corporate Information

1 Measures for Addressing Climate Change

Initiatives for Building a Carbon-Free Society

To further strengthen measures for achieving a carbon-free In FY 2021, worldwide Shimadzu Group energy usage
society, in April 2022, Shimadzu set a new target of increased 7.2 % (year-on-year) to 983,205 GJ, but
achieving net-zero CO2 emissions from business activities by decreased 1.4 % to 2,300 GJ in terms of energy usage per
2050. Interim targets were also specified for reducing net- billion yen in sales. That improvement was the result of
carbon dioxide emissions, from FY 2017 levels, by at least higher production of analytical/measuring instruments and
85 % by FY 2030 and at least 90 % by FY 2040. industrial machinery and a newly completed research
Furthermore, we also set a target level for reducing CO2 building. Meanwhile, CO2 emissions decreased 47.8 %
emissions from customers using Shimadzu products, which (year-on-year) to 18,321 t-CO2, due to energy efficiency
accounts for 74 % of CO2 emissions by other companies improvement measures, such as installing smart meters and
related to Shimadzu Group activities, by at least 30 % from diagnosing energy usage, and by switching to electric power
FY 2020 levels, by FY 2030. In October 2022, the above FY generated from renewable energy sources. Even in terms of
2030 targets were validated by Science-Based Targets (SBT) CO2 emissions as a ratio of sales, emissions decreased 52.0 %
as the 1.5 degree Celsius level. In March 2021, the Shimadzu to 43 t-CO2 per billion yen in net sales.
Group become a member of the RE100 Initiative and We will continue to contribute toward building a sustainable
switched to using electricity generated from renewable society and achieving a carbon-free society by installing solar
energy sources (hereinafter“renewable energy”) at all major power equipment and other ongoing thorough measures to
Shimadzu locations in Japan. Consequently, 86 % of the reduce energy usage and utilize renewable energies.
electricity used by the overall Shimadzu Group is now The following web page includes information about
sourced from renewable energy sources. the topics listed below.
https://www.shimadzu.com/sustainability/concept/index.html
Preventing Global Warming

⿟ Reduce CO2 emissions from Shimadzu Group business activities to net-zero level by FY 2050.
⿟ As interim targets, reduce CO2 emissions from Shimadzu Group business activities by at least 85 % by FY 2030 and at least 90 % by FY 2040,
from FY 2017 levels.
⿟ Reduce CO2 emissions from customers using the products sold by the Shimadzu Group by at least 30 % from FY 2020 levels, by FY 2030.

Energy Usage (Shimadzu Group) CO2 Emissions from Energy Usage (Shimadzu Group)
■■ Shimadzu Group energy usage (Left axis) ー Energy usage per unit net sales (Right axis) ■■ Shimadzu Group CO2 emissions (Left axis) ー CO2 emissions per unit net sales (Right axis)
(GJ) (GJ/billion yen) (t-CO2) (t-CO2/billion yen)
Targets (vs FY 2017)
1,200,000 3,000 60,000 At least 85 % reduction by 2030 300
and net-zero by 2050
983,205 49,398
1,000,000 958,643 938,760 916,822 2,600 50,000 250
38,548
800,000 2,450 2,440 40,000 34,468 200
2,330 2,300 2,200
600,000 30,000 131 150
1,800 100 89
400,000 20,000 18,321 100
1,400 43
200,000 10,000 50
0
0 1,000 0 0
2018 2019 2020 2021 (FY) 2017 2019 2020 2021 2030 2050 (FY)

Examples of Facilities with Solar Panels Introduced

Technology Research Laboratory (Kyoto, Japan) Shimadzu Manufacturing Asia Sdn. Bhd. (Malaysia) Shimane Shimadzu Corporation (Shimane, Japan)

Shimadzu Integrated Report 2022 60

 Environmental Report (E)
Five Measures for Shimadzu Group Environmental Management

TCFD Measures for Addressing Climate Change

The Shimadzu Group considers environmental problems as one of our most important management challenges. To address
the problem of climate change in particular, we are engaged in reducing CO 2 emissions generated from our business activities
throughout the entire value chain and offering products and solutions that contribute to creating innovations in environmental and
energy fields. In May 2019, we endorsed the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD)
and have remained committed to disclosing relevant information.

Governance Risk Management

Shimadzu Group measures for climate-related risks and The Global Environmental Management Department is
opportunities and for solving management challenges are the main body that identifies individual climate change risks
deliberated by the Environmental Meeting (convenes twice that could affect Shimadzu Group businesses, strategies, or
annually), which is the highest deliberative body for finances. Risks are assessed based on climate change
environmental problems. The Shimadzu President chairs the scenarios published by the International Energy Agency (IEA)
Environmental Meeting and coordinates initiatives and other to determine the level and timing of impacts and to identify
issues involving climate-related risks and opportunities. risks with high importance for Shimadzu Group. Risks that
The content of deliberations by the Environmental require a response or corresponding countermeasures are
Meeting is reported to the Executive Committee and deliberated and confirmed by the Environmental Meeting.
reported to and discussed by the Board of Directors. Such identified important climate change risks are
The Board of Directors ensures appropriate monitoring/ reported to the Risk Management and Corporate Ethics
supervision capabilities are provided. Important matters Meeting (chaired by the Shimadzu President), which
relevant to Shimadzu Group environmental management are convenes every six months and deliberates the risks along
deliberated and decided by the Board of Directors. with other company-wide risks. As a result, the risks are
reported to the Executive Committee and reported to and
Diagram of Climate Change Governance System discussed by the Board of Directors.
Important issues and measures decided by the Risk
Board of Directors Management and Corporate Ethics Meeting are coordinated
Chair: Shimadzu Chairman
by the director in charge of risk management and are deployed
Monitor/supervise climate risks/opportunities
in a top-down manner to other respective departments and
Deliberate/decide issues important for
Group companies, primarily by departments specifically
environmental management
responsible for the respective risks or special committees in
Report/ Monitor/ charge of company-wide risk management issues.
discuss supervise
Based on the above systems and processes,
Executive Committee the corporate administrative organizations manage climate
Chair: Shimadzu President
change risks to ensure they are identified, assessed, and
Implement Group measures for climate risks/
appropriately addressed at the workplace level.
opportunities

Report Direct

Environmental Meeting
Chair: President　　　Secretariat: Global Environmental Management Dept.

Deliberate measures for climate risks/opportunities

and for solving management issues

61 Shimadzu Integrated Report 2022

 Message from Contributing to Society through Business Overview Financial and Sustainability Financial and 　
the President Science and Technology and Results Non-Financial Highlights Management Corporate Information

Strategy

1. Identify Climate-Change Risks and Opportunities

When identifying climate-related risks/opportunities that could affect Shimadzu Group businesses, strategies, or finances, identify
and organize the driving factors of climate change expected to have a large impact on Shimadzu businesses in each of two
global scenarios, one where carbon reduction efforts result in a 1.5 °
C temperature increase and the other where current global
warming trends increase temperatures by 4°
C.

Change in Mean Global Temperature Relative to 1850-1900 Period*

Societies fail to implement climate-

change countermeasures beyond

4°C current levels, resulting in a mean

Earth surface temperature in year
2100 that is 4° C higher than during
the 1850 to 1900 period.

Societies transition to a fundamentally

1.5°C
carbon-free society with a mean Earth
surface temperature in year 2100 that is
less than 1.5°C higher than the 1850 to
1900 period.

* Source: IPCC AR6

Primary Drivers of Climate Change that will Affect Shimadzu Businesses

Drivers of Climate Change Relevant to Shimadzu’

s“Four Growth Fields”
Other Drivers of
Environmental and Climate Change
Materials Infrastructure Healthcare
Energy

• More resilient public • Increase in infectious • More frequent and

infrastructure diseases due to severe wind and

4°C
higher air water disasters
temperatures
hotter world

• Widespread adoption • CO2 recovery/reuse • Modal shift • Introduction and

of fossil-free and adopted in actual strengthening of
CO2-free fuels practice • Achieving carbon carbon pricing
neutrality of society systems
• Increased renewable • Expanded utilization by electrification and
energy usage rate of biomass resources strengthening digital • Sharp price
infrastructure increases for
• Shift to electric • Lighter and stronger resilience products in industries

1.5°C
vehicles materials with high energy
• Expanded demand intensity
hotter world for batteries and • Increased market
electric power penetration and
storage systems demand for
environmentally
friendly products

• Intensified R&D
competition

Starting with the climate change drivers indicated above, the main risks and opportunities related to climate change were
identified and evaluated in terms of timing and impact level based on the International Energy Agency (IEA) climate change scenarios
and other factors. The results are summarized in the“Main Risks/Opportunities for Shimadzu Businesses”table on the next page.

Shimadzu Integrated Report 2022 62

 Environmental Report (E)
Five Measures for Shimadzu Group Environmental Management

Main Risks/Opportunities for Shimadzu Businesses

Impact Impact
Drivers of Climate Change Timeframe* Main Risks for Shimadzu Main Opportunities for Shimadzu
Level Level

From
Introduction/strengthening of Burden of carbon pricing occurs/
medium- Moderate Demand for energy-efficient products increases. Moderate
carbon pricing increases.
term

Prices increase sharply for products

From Procurement costs increase for
in industries with high energy Moderate - -
short-term steel materials, etc.
intensity.

Demand decreases for products

Widespread adoption of fossil-free From Demand increases for products related to quality
used by industries that use fossil Moderate High
and CO2-free fuels short-term control of hydrogen, ammonia, biofuels, etc.
fuels or generate electricity.

Demand increases for products used to install,

Demand decreases for products
Increased renewable energy usage From increase generating efficiency, and maintain or
used by industries that use fossil Moderate Moderate
rates short-term manage wind, solar, wood biomass, or other power
fuels or generate electricity.
generating equipment.

From Demand decreases for products Demand increases for products related to motors and
Shift to electric vehicles Low Moderate
short-term used for gasoline vehicles. semiconductors installed on electric vehicles.

Demand increases for products used to improve

Expanded demand for batteries and From
- - battery/storage system performance or to develop/ High
electric power storage systems short-term
evaluate solid-state batteries.

From Demand increases for products related to R&D of

CO2 recovery/reuse adopted in
Transition medium- - - CO2 adsorbents or evaluating chemical products such Moderate
actual practice
term as methanol from widespread use of methanation.

From Demand increases for products related to quality

Expanded utilization of biomass
medium- - - control and evaluation of bioplastic ingredients, Moderate
resources
term biochar, and other biomass resources.

Demand increases for products related to surface

From analysis and material testing machines for new
Lighter and stronger materials - - Moderate
short-term materials used to achieve lighter and stronger
transport equipment.

From
Demand decreases for products Demand increases for products related to improving
Modal shift medium- Moderate Low
related to aircraft equipment. energy efficiency of trains, ships, and large vehicles.
term

Demand increases for products related to

Strengthened digital infrastructure From
- - semiconductors associated with semiconductor and Moderate
for electrification of society short-term
information/communications industry growth.

Preferential strengthening of
From Demand increases for Eco-Products Plus products
environmentally friendly products by - - Moderate
short-term with superior environmental performance.
customers

From Sales opportunities are lost due to Competitiveness and profitability increase such as by
Intensified R&D competition Moderate Moderate
short-term failed or delayed development. continuously investing in R&D.

Losses occur from disaster or

More frequent and severe wind and From
supply chain interruption at a Moderate - -
water disasters short-term
business location.

From Demand increases for various testing machines used

Physical More resilient public infrastructure - - High
short-term to reinforce/replace public infrastructure.

Increased number of patients with Demand increases for diagnostic imaging and other
From
diseases/disorders due to higher air - - equipment due to increased vector-borne infectious Low
long-term
temperatures diseases, etc.

* Indicates approximate timing of impact to Shimadzu businesses. Short-term: Within 3 years; Medium-term: Within 3 to 10 years; Long-term: Over 10 years

2. Impacts on Businesses, Strategies, and Finances

Results from analyzing the impacts on Shimadzu businesses, strategies, and finances for a carbon-free scenario (1.5 °
C hotter)
and the current scenario (4°
C hotter) are summarized below.

1.5°C Hotter World

Demand for Shimadzu products might decrease if energy,
4°C Hotter World
Larger impacts from physical risks are expected to result in a more urgent need to increase the
power generation, transport equipment, and other industries resilience of public infrastructure, which will presumably increase market needs for developing
that use fossil fuels transition to a carbon-free society. On the and supplying various testing machines used to reinforce and replace public infrastructure.
other hand, demand for Shimadzu products is expected to Changes are also expected in medical market conditions, such as the spread of vector-borne
increase in a wide variety of industries due to creation and infectious diseases over larger regions due to higher air temperatures. On the other hand,
expansion of business opportunities related to CO2-free fuels, supply chain interruptions caused by physical risks could result in circumstances with negative
CO2 capturing, and storage batteries. impacts, such as being forced to stop Shimadzu business activities.

Impacts on Shimadzu Businesses, Strategies, and Finances

Shimadzu efforts to reduce CO2 emissions from business activities by actively world will reduce overall risks for society, Shimadzu also is engaged in business
promoting energy efficiency and energy reuse have resulted in CO2 emissions of practices intended to achieve a target 1.5° C temperature increase. Specifically,
18,321 tons in FY 2021. In addition, due to the products and services being Shimadzu designs all products to be environmentally friendly, such as by making
supplied to a wide variety of industries, such as pharmaceuticals, healthcare, them more energy efficient, and continues to increase the percentage of
environmental, energy, semiconductors, and materials, the collective scope of Eco-Products Plus products that offer particularly high environmental performance.
customer industries is particularly broad. Consequently, we think it is very unlikely We also continue to supply and invest in developing products that contribute to
that a contraction in any particular industry would cause a significant impact on mitigating or accommodating climate change.
Shimadzu finances. Overall, we think we can maintain business, strategy, and financial resilience with
In terms of opportunities resulting from climate change, a wide variety of respect to climate change by responding to climate change and implementing
opportunities are expected to emerge in various industries and fields for both measures in accordance with the transition plan indicated on the next page to
1.5° C or 4°C hotter scenarios. Assuming measures to achieve a 1.5° C hotter appropriately identify climate change opportunities and achieve sustained growth.

63 Shimadzu Integrated Report 2022

 Message from Contributing to Society through Business Overview Financial and Sustainability Financial and 　
the President Science and Technology and Results Non-Financial Highlights Management Corporate Information

3. Transition Plan for Achieving a Carbon-Free Society

・ Mitigate Climate Change (Achieve Target 1.5°

C Increase)

In an effort to help achieve the 1.5°

C temperature increase target specified by the Paris Agreement, the Shimadzu Group set
a target of achieving net-zero CO2 emissions from business activities by 2050 and is actively engaged in reducing CO 2 emissions
accordingly. To reduce CO2 emissions from our supply chain, Shimadzu has specified a target for reducing CO 2 emissions from
Shimadzu product use by customers.
Target and corresponding results/progress for such measures are monitored and supervised under climate change
governance practices, and periodically reviewed and updated.

・ Capitalize on and Maximize Opportunities

We will strategically develop and supply products for mitigating and accommodating climate change, help customers achieve
carbon-free businesses, and then use those products to achieve sustained growth. The policies, plans, and other requirements
for measures in key business fields are indicated below.

Policies, Plans, and Other Requirements for Measures in Respective Shimadzu Group Business Fields to Build a Carbon-Free Society

Business Field Policies/Plans for Shimadzu Group Measures

We will contribute to the development of fully solid-state batteries by offering non-destructive X-ray inspection systems, X-ray fluorescence
spectrometers, and other X-ray-based evaluation technologies for R&D or quality control and gas chromatographs for analyzing the gases
Automobiles emitted from the batteries.
As the gasoline-powered vehicle market shrinks and the EV market grows, we will release electric motor balancers and other new products for
Environmental/ electric vehicles.
Energy We will offer various types of chromatographs for quality control analysis of hydrogen manufacturing processes or oil production by microalgae.
For terrestrial and offshore wind power generation, we will develop and offer testing, inspection, and safety monitoring instruments for
Energy maintaining and managing equipment. We will contribute to wood biomass-based electricity generation such as by offering moisture analyzers
for ensuring efficient operation and X-ray fluorescence spectrometers for investigating the presence of hazardous substances in incineration ash.
Due to the growing demand for bioethanol, we will offer gas chromatographs and elemental analysis instruments for quality control.
We will provide support for achieving stronger and lighter materials by offering material testing machines and surface analysis technologies. For
Automobiles bioplastic development, we will offer material testing machines, thermal analyzers, various chromatographs, and elemental analysis instruments for
quality control.
For carbon capturing and storage (CCS) applications, we will offer TOC analyzers and surface analysis and powder evaluation technologies for
Materials Energy researching and developing CO2 sequestration technology. For carbon capturing, utilization, and storage (CCUS) applications, we will offer
chromatographs for evaluating methanol or other substances generated from CO2.
In response to the expanding markets for semiconductors and screen films for flat panel displays and smart devices, we will develop
Semiconductors turbomolecular pumps essential for manufacturing such products and prepare adequate production capabilities in an effort to achieve the
number-one global market share.
Industrial We will continue developing winders for winding glass fiber used in turbine blades for wind power generation.
Infrastructure
Machinery In terms of delivery pumps used in the petrochemical market, we will release new high-efficiency models designed for biodegradable plastics.

Indicators and Targets 2. Development of Certified Environmentally Friendly

Products and Promoting their Widespread Use
1. Reducing CO2 Emissions
The Shimadzu Group is committed to improving
The Shimadzu Group intends to reduce CO2 emissions from the environmental friendliness of products in an effort to
business activities to net-zero (carbon neutral) by 2050*. minimize our impact on the global environment. Shimadzu has
specified a target of generating 30% of net product sales from
FY 2050 Targets “Eco-Products Plus*”products by FY 2030, which are

⿟ Reduce CO2 emissions from business activities to net-zero. products certified to offer significantly higher environmental
⿟ Increase the percentage of renewable energy use to 100%. performance than previous models. Promoting sales of
products with superior environmental performance is viewed
FY 2040 Target as an opportunity for the Shimadzu Group to promote carbon
⿟ Reduce CO2 emissions from business activities by at least 90% neutrality by offering products that help customers
(vs FY 2017).
reduce CO2 emissions.
FY 2030 Targets
* For a description of Eco-Products Plus certified environmentally friendly
⿟ Reduce CO2 emissions from business activities by at least 85% products, refer to p. 67.
(vs FY 2017).
⿟ Reduce CO2 emissions from customers using the products sold
by the Shimadzu Group by at least 30% (vs FY 2020).

* For details about CO2 emission reduction measures and results, refer to p. 60.

Shimadzu Integrated Report 2022 64

 Environmental Report (E)
Five Measures for Shimadzu Group Environmental Management

2 Measures for Establishing a Recycling-Oriented Society

Measures for Achieving a Circular Economy

A variety of business models are being generated for transitioning from a linear economy, based on mass production, mass
consumption, and mass disposal, to a circular economy that extends the value of products and resources and minimizes the
amount of waste generated. Therefore, Shimadzu will continue steadily implementing the three“Rs”(reduce, reuse, and recycle)
and other measures aimed at achieving a circular economy.

Reduce Reducing Waste from PCR Testing

Regular PCR testing requires an RNA purification process
that generates large amounts of liquid and other waste, but
Shimadzu PCR testing kits eliminate the need for RNA
purification. That significantly reduces the quantities of waste
generated from consumables, such as ethanol and other
reagent liquid waste, plastics, and so on. For example, the Coronavirus Detection Process by PCR Testing
waste reduction from one million tests would be equivalent
Prepare PCR
to at least 2,200 L (about 2.2 tons) of reagent waste and at Acquire sample Purify RNA
reagents examination
least 14 tons of plastic waste. Shimadzu kit eliminates need for RNA purification step.

Reuse Reducing Waste by Reusing Packaging Materials

Shimadzu Logistics Service Corporation, which is in charge The delivery boxes are designed to minimize damage during
of Shimadzu Group shipping logistics, has been engaged in production operations and transport and have helped reduce
reducing the amount of packaging material waste generated. quantities of disposable corrugated fiberboard box waste.
In an effort to reduce the amount of stretch wrap film (plastic)
used to prevent loads from falling during transit between the
plants, they started using reusable and efficient Eco Band
pallet straps. They are also implementing other measures,
such as using reusable supplier delivery boxes.
Even at a Group company in the UK, a“reusable supplier
delivery container project”was implemented to use reusable
boxes to transport purchased or service parts from suppliers.
Eco Band Straps Independently Designed
Supplier Delivery Containers

Recycle IoT-Based Plastic Waste Collection System

In January 2020, we introduced a system that automatically large amounts of plastic waste, and also at three other
communicates the timing of the collection of waste plastics cooperating plants. In recognition that the system reduced
generated at the factory and enables efficient transportation. CO2 emissions from waste plastic collection and transport by
The system includes sensors installed at each site for 20%, the Japanese
determining the quantity of waste plastic stored and Ministry of the
communicating the location and quantity to waste management Environment awarded
vendors that collect and transport the waste. The system Shimadzu the Minister of
can also suggest the most efficient route each time the the Environment
waste is collected. The aim is to reduce the CO2 emission Recycling-Oriented
levels associated with transport. Society Achievement
Currently, the system has been introduced at five locations, Award in FY 2021.
including the Sanjo Works and Seta Works, which generate Sensors Installed in Waste Storage Area

65 Shimadzu Integrated Report 2022

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the President Science and Technology and Results Non-Financial Highlights Management Corporate Information

Recycling Resources
appropriately sorted, stored, and managed with a manifest.
Promoting Appropriate Waste Processing and Recycling To ensure compliance with laws and regulations, company
Due to the performance growth in the analytical/measuring internal regulations and procedures are specified and
instruments and industrial machinery fields during FY 2021, implemented, including conducting on-site inspections of
the total output of unnecessary items (sum of waste outside waste management vendors.
materials for disposal and metal shavings or other valuable We will continue to implement measures for using
substances for resale) from key Shimadzu business and resources sustainably.
research facilities in Japan increased 6.2% (year on year) to Waste Output and Recycling Rates (Manufacturing, Research,
5,645 tons. Meanwhile, the quantity of waste materials 廃棄物排出量とリサイクル率の推移
and Major Manufacturing Subsidiary Locations in Japan) （国内生産拠点・研究
increased 2.6% (year on year) to 2,126 tons. To maximize ■ Output of unnecessary items (Left axis) ■ Output of waste items (Left axis)
the utility of Earth’
s finite resources by establishing a ■ Hazardous waste (substances that require special waste management) (Left axis)
■ Quantity eventually landfilled (Left axis) ー Recycling rate (Right axis)
recycling-oriented society, the Shimadzu Group strictly （t） （％）
99.45 99.67 99.56 99.59
ensures compliance with laws and regulations and practices 6,000 100
the three Rs (reduce, reuse, and recycle) at each workplace. 5,000 5,645
5,228 5,137 5,314 80
Accordingly, Shimadzu has set a target at least 99%
4,000
recycling rate (quantity of unnecessary items output minus 60
the quantity eventually landfilled divided by the quantity of 3,000
2,072 2,126 40
unnecessary items output) for waste management. The actual 2,000 1,852 1,741
recycling rate in FY 2021 was 99.59%, which was achieved 20
1,000 168 197
for 12 consecutive years. 127 126
29 17 23 23
To promote 3R practices,“eco leaders”and“industrial 0 0
2018 2019 2020 2021 (FY)
waste leaders”are appointed for each workplace to ensure The following web page includes information about the topic
waste items are properly recycled or discarded. Trash is listed below.
https://www.shimadzu.com/sustainability/concept/index.html
Waste Management

Water Management
Reducing Water Usage and Managing Effluent Water Water Usage (Manufacturing, Research,
and Major Manufacturing Subsidiary Locations in Japan)
Appropriately
■■ Water usage (Left axis) ー Water usage per unit of net sales (Right axis)
We are committed to reducing water usage, such as by (1000 ㎥) (1000 ㎥/billion yen)

watering green areas with rainwater and installing water- 250 0.8
215
efficient fixtures. 202 203 204
200
For FY 2021, water usage at Shimadzu manufacturing and 0.6
research sites increased 5.3% (year on year) to 215,000 m , 3
150 0.52 0.53 0.52 0.50
but decreased by 3.2% per unit of sales to 500 m3 per 0.4
billion yen. 100
Though we control plant effluents to our own voluntary 0.2
50
standards that are stricter than the standards required by
current laws and regulations, there was one case last year 0 0
2018 2019 2020 2021 (FY)
when the zinc level exceeded that effluent standard.
We will continue to implement measures for using The following web page includes information about the topic
listed below.
resources sustainably. https://www.shimadzu.com/sustainability/concept/index.html
Water Management

Case of Effluent Violation

On July 21, 2021, in the Shimadzu Oike district (Ukyo Ward, Kyoto mud sediment was removed, the outflow pathway was cleaned, and
City), a zinc concentration that exceeded the criterion value specified by the subsequent effluent was checked to make sure it complies with
the Japanese Sewerage Act was detected in effluent water (2.1 mg/L effluent criteria. In addition, a simultaneous survey of effluents from all
detected vs 2.0 mg/L criterion value), which resulted in receiving a Shimadzu plants and research laboratories was conducted.
warning from Kyoto City. To prevent recurrence, an improvement plan was submitted to Kyoto
Due to the high probability that the high zinc value was caused by City for periodically (1) cleaning all effluent flow pathways and (2) analyzing
zinc contained in mud sediment that settled in the effluent pathway effluents for all substances subject to monitoring by laws or regulations, and
mixing into the effluent water, as an emergency countermeasure, the those practices are currently being integrated into rules and operations.

Shimadzu Integrated Report 2022 66

 Environmental Report (E)
Five Measures for Shimadzu Group Environmental Management

3 Developing and Supplying Products and Services that Promote Global Environmental Conservation

Improving the Environmental The following web page includes information about the
topic listed below.

Friendliness of All Products

https://www.shimadzu.com/sustainability/approach/
environmental/ecoproplus.html
Eco-Products Plus Certified Environmentally Friendly Products
—Designed to Reduce Global Environmental Impact—

Environmental Considerations in Product Development

The Shimadzu Group is committed to improving the During FY 2021, Shimadzu reduced CO2 emissions from
environmental friendliness of products in an effort to also customers using Eco-Products Plus products by 55,166
minimize our global environmental impact throughout tons. That is more than all the CO2 emissions by the entire
the value chain. Product design and development personnel Shimadzu Group.
are improving the environmental friendliness of all products Shimadzu also specified an interim goal of increasing
by applying Product Design Guideline requirements and the ratio of Eco-Products Plus products to 30% of product
satisfying new product review criteria for achieving lower sales by FY 2030.
environmental impact than previous models. In particular, Shimadzu will continue to make further contributions to
products that achieve especially high environmental the environment in the future as well, such as by supplying
performance are offered to customers as certified Eco- products that help achieve carbon neutrality, establish a
Products Plus products. The criteria for Eco-Products Plus recycling-oriented society, or improve working environments.
certification are (1) at least 25% higher energy efficiency,
(2) at least 25% smaller size, or (3) at least 25% lower Criteria in Environmental Design Guidelines

consumption rate of gases, solvents, or other consumables

than the previous model. In addition, three more criteria were Energy Reduce Reuse Recycle
added to the above three in March 2022, including (4) at efficiency Longer product Parts Ease of
life, lighter weight interchangeability disassembly for
least 25% less CO2 emissions due to longer product life, on packaging, etc. disposal

a life cycle assessment basis, (5) at least 25% lower noise,

or (6) at least 25% higher energy density than the previous
model. Eco-Products Plus products must satisfy at least one
FY 2021 Contribution to Reducing
CO2 Emissions 55,166t-CO2
of these criteria.
Shimadzu Group (Worldwide) CO2 Emissions and
Longer product life Contribution to Reducing CO2 Emissions
Energy efficiency (CO2 output reduction
ー Contribution volume of reduction in CO2 emissions ー Shimadzu Group CO2 emissions
on LCA basis)
（t-CO2）

― Striving to Minimize Shimadzu’s 60,000 51,725 55,166

Global Environmental Impact ― 49,398
50,000 44,958 44,688
Eco-Products Plus

At least 25%
Smaller size 40,000
(in terms of weight,
Lower noise level 38,688 38,548
volume, and/or 30,000 33,820 34,468
footprint)
Eco-Products Plus products must satisfy
18,321
one of the criteria compared to the 20,000
previous Shimadzu model.
10,000
Reduction in use of
Higher energy
gases, solvents, or 0
other consumables
density 2017 2018 2019 2020 2021 (FY)
The Shimadzu Group is committed to improving the environmental friendliness of
products in an effort to minimize our impact on the global environment. In particular,
• For more details, refer to the website. products that achieve especially high environmental performance are offered to
customers as certified Eco-Products Plus products. During FY 2021, these models
reduced CO2 emissions generated at customer operations by 55,166 tons.
Certified Eco-Products Plus Products

Electricity Volume Electricity Volume

43 66 46 43
LCMS-2050 High-Performance Liquid Chromatograph Mass Spectrometer DSF-60C30 Super-Heated Dewaxing Furnace Trinias Angiography System

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 Message from Contributing to Society through Business Overview Financial and Sustainability Financial and 　
the President Science and Technology and Results Non-Financial Highlights Management Corporate Information

4 Engaging in Biodiversity Conservation Activities

Contributing to Conservation of Biodiversity

Biodiversity Conservation Activities Rooted in Local Communities
The 8,000 m2 Shimadzu Forest was created in the Sanjo at Kamigamo Shrine and Shimogamo Shrine (formally known
Works within the Head Office grounds (Kyoto City, Kyoto as Kamomioya Shrine) and at the Aoi Matsuri Festival, one of
Prefecture) following the construction of our new Head Office Kyoto’
s three major festivals. Due to a shortage of Futaba
building in 2014. We planted approximately 1,000 plants, Aoi leaves from damage caused by environmental changes,
and our customers and employees enjoy the area as a place deer, boar, and other factors in recent years, Shimadzu has
to relax. been cultivating the plants in our Shimadzu Forest and
In 2015, we became the first manufacturing company in donating them to the Kamigamo Shrine since 2017.
western Japan to win the maximum AAA rating awarded by The donated Futaba Aoi plants are grown in the Aoi-no-mori
the Ecosystem Conservation Society-Japan under the Japan Forest at the Kamigamo Shrine for in the Aoi Matsuri during
Habitat Evaluation & Certification Program (JHEP), a system the following year or thereafter.
that objectively evaluates and certifies efforts to conserve Shimadzu engages in these activities to conserve
and restore biodiversity. The certification was renewed in biodiversity by protecting local native varieties and contribute
2020 and we maintained our AAA rating. to the local community by promoting understanding and
14,000 Futaba Aoi leaves are used in the annual festivals continuity of traditional culture.

Shimadzu Forest within Sanjo Works in the Head Office Grounds Futaba Aoi Plants Growing in the Shimadzu Forest Shimadzu Employees also Participated
in Creating Decorations

5 Actively Engaging in Environmental Conservation Activities Involving Each Employee

Engaging in Activities that Help Shimadzu Contribute to

Environmental Conservation
The Shimadzu Group is involved in environmental conservation environment at elementary schools and other locations, and
activities throughout the world. dispatches instructors for environmental seminars.
A Shimadzu Group company in Germany participated in
planting plants and removing weeds to help honeybees,
conducting a habitat survey, and other biodiversity conservation
activities at a park in Duisburg. Employees from a Group
company in China have been participating in“Mother River
Protection”activities since 2010, including planting trees to
protect the water and soil and restore vegetation in Huang He
and Yangtze watershed areas. Also, for one year since 2021,
they volunteered in river water quality conservation activities
sponsored by the Hongmei Road association to contribute to
local environmental conservation. The following web page includes information about the topic
listed below.
In Japan, Shimadzu continues to support activities of https://www.shimadzu.com/sustainability/approach/
environmental/support.html
the Kyoto Model Forest Association since 2008, such as by
External Support Activities
providing employee volunteers for ongoing Shimadzu Corporation
The following web page includes information about the topic
Forest cultivation activities (in Nantan City, Kyoto Prefecture). An listed below.
https://www.shimadzu.com/sustainability/approach/
Eco-Club environmental activities group develops educational environmental/biodiversity.html
materials about the environment, teaches lessons about the Conservation of Biodiversity

Shimadzu Integrated Report 2022 68

 Social Report (S)

Investment in Human Resources

Basic Policy for Human Resource Strategies
We believe that innovation is critical for achieving our In fiscal 2021, a total of 111 entries were received,
corporate philosophy“Contributing to Society through including 55 from the head office, 13 from domestic Group
Science and Technology.”Innovation is generated by companies, and 43 from overseas Group companies, and the
combining the diverse expertise and values offered by each President's Award was given for social contribution through
employee to work passionately as a team, which can be products related to the novel coronavirus, such as AutoAmp
used to solve challenges in society. Genetic Analyzer, reagent kits, and mobile X-ray systems.
Considering the increasing speed of changes in business The Group was recognized for its ability to mobilize its
conditions and technical innovations and the increasing collective strength to respond to the social demands of the
diversity and complexity of societal challenges, employee pandemic and launch products in a short period of time.
abilities are essential for achieving the targets specified in Each year, the awards ceremony is held in Kyoto, but since
the medium-term management plan. For that and other the 2020 ceremony, overseas winners have participated via
reasons, we will cultivate human resources by implementing Zoom and have been livestreamed on YouTube both in
four important policies: (1) Utilize global human resources Japan and overseas.
more extensively; (2) Develop stronger and more resilient DIO “
( do it ourselves”) improvement activities, originally
personnel and organizations; (3) Build a corporate culture started 27 years ago for small groups of employees at
that takes advantage of diversity; and (4) Strive to create manufacturing workplaces to identify problems and then
a healthy and safe workplace using digital technologies. propose and implement solutions, are now used in other
We will also strive to become a company that achieves non-manufacturing departments, such as product development,
a sustainable society through cooperation with partners sales, corporate administrative departments, and even at
around the world. Group subsidiaries. DIO teams that achieve particularly
noteworthy results are recognized and receive
Apply science and an award at the All-Shimadzu DIO Awards Ceremony. DIO
VUCA technology in society Increasing
activities have now spread outside of Japan to China,
changes in the complexity in
external internal Malaysia, and the Philippines as well.
conditions conditions
Achieve sustained growth Globally identifying and sharing examples of taking on
challenges in that way increases our knowledge as an
organization, fosters a sense of unity, and instills a culture of
Utilize global Develop stronger Build a corporate Strive to create a
human and more resilient culture that takes healthy and safe taking on challenges.
resources more personnel and advantage of workplace using
extensively organizations diversity digital technologies Furthermore, in an effort to provide a work environment
where employees are free to take on new challenges, a Work
Engagement Survey was started at the Head Office in 2020 to
Cultivating a Culture of Taking on Challenges assess each employee’
s level of engagement in their work.

To be prepared for increasingly diverse and complex

challenges, it will be important to cultivate a mindset and Framework for a Culture of Taking on Challenges

environment that promotes taking on challenges, in addition

to having competence and passion. Taking on
challenges
Each year we issue Shimadzu Business Performance
Awards in recognition of individuals, teams, or organizations New challenges Work engagement

at Group companies throughout the world that implemented

outstanding measures or achieved exceptional accomplishments
in business activities. Sharing Recognition
Cultivates sense of unity

Human Resource Development

In a rapidly changing business environment, we believe it is addition to the input of knowledge through training, we will
a management challenge to systematically and continuously work on leadership training by systematically imparting the
develop management personnel with a global perspective. In necessary experience as a management asset. Furthermore,

69 Shimadzu Integrated Report 2022

 Message from Contributing to Society through Business Overview Financial and Sustainability Financial and 　
the President Science and Technology and Results Non-Financial Highlights Management Corporate Information

we aim to realize talent management that will identify talent We send employees who are pursuing doctorates as
globally regardless of nationality or gender and realize the students, and aim to acquire new expertise by studying with
right people in the right places. a view to social implementation, and to expand business
Shimadzu’
s greatest strength is our exceptional technical opportunities for academic research as well.
and other expertise. Therefore, extending our advantage Because of the wide range of skills and knowledge
in expertise by each person learning from a wide variety of required in this way, we aim to build an autonomous climate
experiences will lead to creativity that generates innovation. that encourages each employee to realize career self-
For example, one skill that will be important in a digital reliance and update their own knowledge and skills.
age is data science. In an increasingly global business
environment, there are more and more opportunities to work Cost of Training Full Employees (Non-Consolidated)
cooperatively with personnel at Group companies outside FY 2017 FY 2018 FY 2019 FY 2020 FY 2021
Japan or partners outside Japan, which will require skills Training cost (Million yen) 502 506 528 460 639
Number of employees
for communicating and collaborating in a different cultural (non-consolidated)
3,253 3,337 3,425 3,448 3,540

environment. As technological innovation advances toward Cost per employee (Yen) 154,319 151,633 154,161 133,411 180,508
a sustainable society, our scientific knowledge needs to be
updated. In fiscal 2021, our company started a REACH lab
project in collaboration with Osaka University.

Types of Training
Assistant Section
研修体系 Newly Hired Employees General Sub-Leader Assistant Manager
Chief
Manager General Manager Corporate Officer

New-employee training Third-year employee training Promotion guidance Business skills course Pre-promotion training New general manager training Executive management training
Follow-up training Problem-solving (basic) Mid-career training Follow-up training Governance training
Required Training for supervising managers and mentors at sites with new employees
New mid-career employee follow-up training
30's/40's/50's Career Training
Problem-solving training (application), project management training, logical presentation training, and data skills course
Business skills courses (management strategy course, marketing course, and accounting course)
All Optional
Presentations
English/Chinese language study
Selected Management training
Local training outside Japan
Developing
Intercultural communication training
Global Human
Resources Training before assignment as president of a subsidiary
outside Japan

New-employee basic
Technical Young engineer training (67 courses in 11 fields)
technical training
New-employee sales Sales practicum course Improvement Sales leader training
course (second year) workshop program

Sales/ PSS training (first year)

Marketing Customer interaction skills
training (first year)
Job-Specific
Compliance training for sales departments
Technical school Second-year follow-up Basic skills Basic leader
training training training (L6) training (L7)

Skill-Based Basic skills training (J2) Supervisor training (L7)

Basic skills training (J3)
Basic skills training (K4)

Group Japan New-employee training Junior administrator training

Companies Outside Japan Global manager training

Required Option to Take Discretionary Courses according to Work

•   Practical training and hands-on

Step 4 Practice and applications
Lead instruction in advanced analysis •   Hands-on introduction to machine learning with Python
(practical applications)
Technical for experienced technical staff
Staff
•   Practical statistical analysis that can be used in the field
•   Practical deep learning using Python
•   Practical problem-solving using machine learning

Experienced •   Practical experience in planning •   Introduction to testing and estimation through case studies •   Learn in 2 hours! Basics of statistics—least squares
method and calibration Step 3 Practice and applications
Technical and implementing data •   AI business planner training course •   Hands-on introduction to principal component analysis
Staff analytics (PCA) •   Learn in 2 hours! Limits of detection and quantitation

•   Data scientist basic course •   Acquiring and analyzing data using SQL
Beginners •  Learning about statistics using e-learning •  Basics of data processing through e-learning Step 2 Learning the basics
•  Data science seminar Step 1 Awareness of importance

⿟External training　⿟Internal training

Shimadzu Integrated Report 2022 70

 Social Report (S)

Diversity and Inclusion

Basic Policy for Diversity and Inclusion
Diversity management generates new value in society through
⿟ Combining diverse types of knowledge and senses of value provides
innovation that results from acquiring talented human a source of new science and technology required by Shimadzu.
resources, regardless of nationality or gender. However, ⿟ Providing a workplace environment where employees are free to
because Shimadzu has a lower ratio of women in corporate fully utilize their strengths, regardless of differences in gender,
executive or management positions than average for nationality, age, gender identity/orientation (SOGI/LGBTQ),
disabilities, or other limitations on work practices, leads us to
other manufacturers, increasing the number of women
continue to be a company that attracts talented human resources
in leadership positions has become an urgent challenge.
and that is admired by society.
Based on the philosophy outlined at right, our company is ⿟ Each employee believing that they are a valued member of their
committed to the promotion of diversity and inclusion (D&I). workplace provides the foundation for employee trust in the company
and sharing corporate value.

Shimadzu Diversity Day

In FY 2020, Shimadzu established Shimadzu Diversity Day Director Hiroko Wada. The lectures aimed at enabling each
for everyone working at Shimadzu to think about the impact individual to develop leadership skills necessary for their
of diversity on the workplace. In FY 2021, in addition to work and give them the confidence to take a step forward in
a lecture (Rikkyo University*), male employees shared their their career.
experiences of taking childcare leave, and non-Japanese * At the time of the lecture, Dr. Christina L. Ahmadjian was a professor at
Hitotsubashi University.
employees’hometown dishes were offered in the cafeteria.
In addition, the Diversity Senryu Contest received applications
from overseas Group companies, giving this initiative a rich
international flavor.
A D&I awareness survey, unconscious bias training for all
managers, and leadership training for female managers were
also held in FY 2021. Thirty-nine young female employees
D&I’
s New Symbol
participated in a mini-lecture (W-Juku) given by Outside

Achieving Flexible Working Practices

In order to improve productivity by employees with various
backgrounds, who are not limited to women and non-
Selected as a“Diversity Management Selection
Japanese employees, we promote remote working and other
100”Company
flexible working practices. In Japan, Mondays, Wednesdays,
Shimadzu is included in the Diversity
and Fridays every week are designated as“Refresh Days,”
Management Selection 100 list, which is
when employees are encouraged to leave the office on time. a list of companies selected by the
The purpose is to promote generating new ideas by ensuring Japanese Ministry of Economy, Trade and
employees are healthy, have time to communicate with Industry to publicize advanced measures by companies that use
diversity to achieve better management results.
a variety of people, and improve their own skills.
Shimadzu’
s teleworking system was introduced in 2017 for
childcare and nursing care purposes. In 2020, due to the Selected as a Nadeshiko Brand
COVID-19 pandemic, a teleworking system was fully introduced, Shimadzu has been selected as
and it enabled all employees to work from home or a satellite a Nadeshiko brand in recognition of being
a company that actively promotes the role
office. The goal is to permanently establish the optimal combination
of women in the workplace. Nadeshiko
of working at the office and working at home.
brands are selected from respective
To facilitate teleworking, we have also been using various industries by the Japanese Ministry of Economy, Trade and Industry
digital tools, strengthening confidentiality measures, converting and the Tokyo Stock Exchange from the approximately 3,700
documents to digital form, and reassessing companies listed on the exchange, based on their practices that
business processes. actively promote the roles of women, including providing a work
environment where women are free to continue working.

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the President Science and Technology and Results Non-Financial Highlights Management Corporate Information

Percentage of Women in Management Positions

Number of Employees/Overseas Employee Ratio (Head Office and Group Companies in and outside Japan)
(Head Office and Group Companies in and outside Japan)
* Headquarters target of at least 6% (or 60 employees) by FY 2025
■ Head Office and Group companies in Japan (Left axis) (％) ー Consolidated ー Head Office ー Group companies in Japan 
(Employees) ■ Group companies outside Japan (Left axis)  (％) ー Group companies outside Japan
ー Overseas employee ratio (Right axis) 25
15,000 13,499 100 20.5 20.8
13,182 13,308 19.7
12,684 20 18.7 18.1
11,954
12,000 80
5,485 5,549 5,692
4,805 5,187 15
9,000 60
40 41 42 42 42 9.6 9.6 10.2
10 8.5 8.5
6,000 40
7,149 7,497 7,697 7,759 7,807 4.2 4.1
3,000 20 5 3.3 3.5
2.2
2.4 2.6 2.9 3.6
0 0 0 2.3
2017 2018 2019 2020 2021 (FY) 2017 2018 2019 2020 2021 (FY)

D&I Awareness Survey Results (% is the percentage of people who answered each item is important in promoting D&I.)
Total Sex Comparison over Time
Male-Female Female in Female in 2021-2017 Male in Male in 2021-2018
Male Female No answer
difference 2017 2021 difference 2018 2021 difference
Eliminating gender role bias 33.7 % 34.6 % 29.5 % -5.1 % 40.9 % 19.2 % 29.5 % 10.3 % 10.6 % 34.6 % 24.0 %
Introducing and expanding various
work styles such as working from home 34.5 % 33.3 % 38.7 % 5.4 % 50.0 % 16.6 % 38.7 % 22.1 % 10.6 % 33.3 % 22.7 %
and shorter working hours
Fostering and promoting role models 16.3 % 15.9 % 18.2 % 2.3 % 9.1 % 24.8 % 18.2 % -6.6 % 39.7 % 15.9 % -23.8 %
Improving long working hours and
21.6 % 22.0 % 20.0 % -2.0 % 22.7 % 41.8 % 20.0 % -21.8 % 41.9 % 22.0 % -19.9 %
productivity in the workplace

Number of New Mid-Career Hires

Diversity Data (Non-Consolidated)
Management Regular Practical Percentage
Total Male Female
Data about Women’s Positions Positions Positions of Women
FY 2020 FY 2021 Average*
Initiatives FY 2016 25 0 22 3 16 9 36 %
Percent Leave Days 33 1 31 1 26 7 21 %
16.7 % 20.8 % 12.65 % FY 2017
Used: Men
FY 2018 53 1 45 7 32 21 40 %
Average Number of 80 % used less
93 53.7
Leave Days Used: Men than 1 month FY 2019 31 0 20 11 13 18 58 %
FY 2020 22 0 2 20 2 20 91 %
Percent Childcare FY 2021 29 2 15 12 13 16 55 %
FY 2020 FY 2021
Leave Days Used
Men 16.7 % 20.8 %
Women 100 % 100 %

* Source: July 3, 2019, Japanese Ministry of Health, Labour and Welfare Report Average Number of Years Employed (FY 2021)
Status of Childcare Leave Usage by Men and Measures to Promote Usage
Men 19.3 yrs Women 14.8 yrs
FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021
Number of Managers or Above 813 677 701 716 713 725
Number of Managers or Above (Women) 12 15 23 25 29 30
Percentage of Women 1.5 % 2.2 % 3.3 % 3.5 % 4.1 % 4.1 %
Working Practice Data Per month
Number of General Managers or Above 182 197 190 191 186 194 FY 2021 Data FY 2019 FY 2020 FY 2021
Number of General Managers or Above (Women) 2 3 5 6 8 9
Core Management Target: 30 hrs 29.4 30.3 30.6
Percentage of Women 1.1 % 1.5 % 2.6 % 3.1 % 4.3 % 4.6 %
Avg. Overtime
Hours
Labor Union Target: 5 hrs 6.8 2.4 5.0

Annual Core Management Target: 45 % 50.1 % 47.0 % 45.8 %

Percentage of Women Employees (Non-Consolidated) Vacation Day
Usage Rate Labor Union Target: 85 % 78.8 % 70.8 % 74.6 %
■ Women (Left axis) ■ Men (Left axis) Percentage (Right axis)
Ratio Working Company Average
(Employees) (％) ー 31 % 28 %
from Home (Average for All of 2021)
3,500 3,111 3,100 30
2,993 3,005 3,080 3,076
3,000
19.9 20.4 24 RPA (Robotic Process Automation) Results
2,500 18.3 19.1
16.2 16.9
2,000 18 FY 2021 Data FY 2018 FY 2019 FY 2020 FY 2021
Hours Saved
1,500 12 during Fiscal Year
7,414 15,414 19,514 29,298

1,000 688 734 769 787 Cumulative Hours

579 610 Saved
8,959 24,373 43,887 73,185
6
500 Number Created
102 117 30 73
during Fiscal Year
0 0
2016 2017 2018 2019 2020 2021 (FY) Cumulative
127 244 274 347
Number Created

Shimadzu Integrated Report 2022 72

 Social Report (S) For more information on Shimadzu’ s Health
Management, refer to the website.

Health Management
https://www.shimadzu.com/about/health.html

Basic Policy for Health and Productivity Management

Based on Shimadzu’
s corporate philosophy“Contributing to Creating a compassionate and vigorous work
Society through Science and Technology,”Shimadzu has environment where each employee takes an interest in their
been creating new products and technologies. And with own and their coworker’
s health to make sure they are
management principle“Realizing Our Wishes for the Well- healthy both mentally and physically.
being of Mankind and the Earth, Shimadzu continues to Shimadzu prepares a health management environment
realize our wishes for the well-being of mankind from and offers our healthcare technologies, products, and
the viewpoint of an era when the average life expectancy is services to employees and their families. We aim to grow
100 years old. with our employees.

Health Declaration
The health and safety of each employee and their ability to work positively and with vitality serve as the basis for achieving Shimadzu Corporation's
management principle "Realizing Our Wishes for the Well-being of both Mankind and the Earth". Accordingly, we declare that we will strive toward
realizing our wishes for health.

1. Ensuring Health 2. Sustaining Businesses 3. Contributing to Future of

Through Health Society Through Health
We will be highly mindful of our health and We will uphold the company spirit of promoting We will grow together with society and strive to
engage in independently maintaining our own employee health, which has continued since the help create a prosperous future for mankind
health. In addition, together with our colleagues company was founded in 1875. In addition, by based on ensuring the health of our employees
we will endeavor to create a secure, safe, and supplying leading-edge scientific technologies and their families, who are at the core of our
comfortable workplace. and services, we will help ensure the health of business operations, and based on our
employees and society and promote the growth corporate philosophy "Contributing to Society
and prosperity of our businesses. through Science and Technology".

October 2017

Key Initiatives
We have established key initiatives in five areas with the aim distributed to Group companies worldwide to raise
of maintaining employee health, promoting mental and physical awareness of health.
wellbeing, and balancing work and medical treatment. These Recognizing that daily health management is extremely
areas are exercise, diet, sleep, mental health, and quitting important for employee health, the web-based morning
smoking. We focus on employee health management based physical condition check questionnaire that started in April
on the percent of employees with optimal body weight, the 2020 to prevent the spread of COVID-19 infections is still
percentage of non-smokers, and the percentage of ongoing. Individual measures by occupational health staff,
employees registered on the Shimadzu health web service including public health nurses, have been very effective in
as key performance indicators (KPI). the early detection of not only infectious diseases but also
Shimadzu provides healthy menus in the employee other diseases.
cafeteria, supports sleep apnea testing, and promotes Although listed as one of the five priority items, we particularly
activities to prevent passive smoking and encourage focus on mental health, which has recently become
employees to quit smoking. On-demand exercise videos are a significant issue. We are implementing a balanced mental

Number of Cases Addressed by Occupational Health

Trends in Company-Wide Smoking Rate Nurses (Health Checks)
■ FY 2020 ■ FY 2021
(％)   Male smoking rate   Female smoking rate   Overall smoking rate
(Cases)
20 100 94

15 16.6 16.4 15.8

80
70 73
15.3 68 66 69
13.6 59 59 60
13.1 12.5 60 55
12.2 49 49 48 51
10 44 45 41 43
40 37 40
40 47
39 42
5
20
3.1 2.5 2.4 2.2
0 0
2018 2019 2020 2021 (FY) 4 5 6 7 8 9 10 11 12 1 2 3 (Month)

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the President Science and Technology and Results Non-Financial Highlights Management Corporate Information

Recognized as a Health and Productivity Management Brand and White 500 Company
In March 2023, Shimadzu was selected as a Health and Productivity Management Brand for the third year in a row.
In addition, we have been recognized as a White 500 Company with Superior Health Management for the seventh
consecutive year since the system started.

health policy from primary to tertiary prevention, including management certification to improve
resilience education (to adapt flexibly to difficult situations) the knowledge of managers, as well as counseling and
with in-house clinicians as instructors, mental health first aid return-to-work support.
training to learn first response methods, and mental health

Mental Health Initiatives

Self-care Line care Counseling Support for leave of

Mental Health

• Acquire and use • Appropriate initial support at • Improved in-house absence and return
Care Flow

knowledge for preventive each workplace counseling to work

measures correctly • Connect with specialists at • Further use of outside • Follow-up for early
an early stage counseling return to work

Promote self-care Strengthen line care system Strengthen counselor system Early return to work
Main Measures

• Self-care videos • Mental Health Management • Strengthen counseling by • Support for return to work
• Mental health seminars (new Certification psychological counselors provided by occupational
employee training, etc.) • Develop mental health first aid (follow-up) doctors, public health
training (employee program) • Strengthen cooperation with nurses, and psychological
• Mental health training by an counselors
in-house instructor (resilience external counseling agencies
training) • Follow-up to prevent
recurrence

Started Subsidizing the Cost of Tests to Determine the Risk of Developing

Mild Cognitive Impairment
Starting in June 2022, we will subsidize the cost of the MCI (approximately 2,200 employees). The subsidy will amount to
Screening Test Plus test, which determines the risk of developing about 20,000 yen. After the examination, an occupational
mild cognitive impairment (MCI), a preliminary stage of health nurse provides advice on lifestyle habits such as diet,
Alzheimer’
s dementia, for employees aged 40 and over exercise, and sleep to those who wish to receive it.

In-House PCR Testing Room Established

As a company committed to fighting the pandemic, such as Consequently, Shimadzu’
s own technologies are being
by developing and selling PCR testing kits and fully automatic used for employee health management, such as to confirm
PCR testing systems, Shimadzu has established a new PCR negative PCR test results.
testing room within the health center at Shimadzu.

Subsidizing Breast Cancer Examination Expenses with Elmammo Avant

Class Dedicated Breast PET System
In cooperation with Medical Corporation Chionkai, we established established to promote the early detection and early treatment
a system for subsidizing the cost of obtaining a breast cancer of breast cancer by increasing the ratio of women receiving
examination using a Shimadzu Elmammo Avant Class breast exams. Female employees or spouses of male employees
dedicated breast PET system. The subsidy system was aged 40 or older were eligible for the examination.

Introducing Health Web Service

Kencom, a health web service, has been introduced and weight, the company also promotes
used by each employee to raise health awareness and exercise and encourages communication
develop healthy behavioral habits (81.5% of employees among employees through "walking"
subscribed as of March 2022). In addition to using it for daily events held twice a year.
health management such as keeping track of steps and

Shimadzu Integrated Report 2022 74

 Social Report (S)

Message from the Director in Charge of

Human Resources

Yoshino Kajitani
Managing Executive Officer
In Charge of Human Resources,
Diversity Management,
Health Management

Basic Human Resources Policies that enable the abilities of diverse personnel to be fully utilized
under a variety of conditions and that generate motivation by
As well as Shimadzu’ s corporate philosophy“Contributing to
assessing their work fairly. The third is to develop personnel
Society through Science and Technology,”solving challenges
and organizations by recruiting diverse human resources,
in society has remained a core theme of Shimadzu businesses
supporting their growth as well as practicing management
ever since the company was founded. However, given the
methods that translate individual strengths into organizational
difficulty of predicting the future of society and business today
strengths. By integrating those three approaches, we will work
due to“ VUCA ”(volatility, uncertainty, complexity, and
to offer individualized career support, develop emergent
ambiguity), for Shimadzu to continue solving challenges in
organizations that make the most of individual strengths,
society it will be essential to constantly generate new value
cultivate a centripetal force that attracts people to the
and innovation. The driving force powering that process is
company, and achieve decision-making from more diverse
people. Therefore, one of our important roles is to create an
perspectives. In April 2022, we established a new organization
environment where each employee feels free to work
for promoting D&I within the Human Resources Development
enthusiastically and fully utilize their individual strengths, and
Department. By deploying measures to firmly establish and
where the individual strengths can be amplified in combination
promote D&I, such as human resources development, human
with others. Accordingly, we intend to achieve personal and
resources systems, and hiring practices, we intend to more
organizational growth through diversity and inclusion (D&I).
deeply instill D&I and also DE&I (diversity, equity, and inclusion).
Implementing D&I Measures
Reforming Employee Mentality and Cultivating
Shimadzu boasts a long history of promoting D&I, starting Corporate Culture
with prenatal and postnatal maternity leave policies introduced
Beginning in FY 2020, Shimadzu has been conducting
in 1948 and continuing to this day with new policies being
unconscious bias workshops and holding Shimadzu Diversity
added for improving existing systems and reforming attitudes
days in an effort to reform employee biases. Shimadzu
about them, mostly for empowering women in the workplace,
Corporation has also been conducting opinion surveys about
such as the WiSH diversity project launched in 2015.
D&I in order to assess the current status and consider D&I
Nevertheless, despite women accounting for 20% of all
measures. One issue that was identified by the surveys is the
employees, only 4.2% of managers are women, so
need to“strengthen career support for achieving growth.”
organizational level-specific training, mentoring, and other
We will therefore help employees independently plan their
measures for empowering women were established in FY 2021
careers by continuously improving measures for supporting
with help from outside directors. To foster women leaders and
careers and developing skills. Furthermore, to promote D&I
address gender issues, we will continue expanding such
throughout the entire Shimadzu Group, a global D&I survey
programs in the future as well.
was also conducted. We will try to implement integrated
In addition to supporting women, we will also promote
measures throughout the Group based on the D&I
D&I in terms of both organizational diversity and individual
implementation status and issues at each Group company.
diversity, from the perspective of diversity in group affiliation
Through such activities, our aim is to incorporate D&I into the
and diversity in values and knowledge.
behaviors of employees and the corporate culture so that
We are promoting D&I based on three approaches. The
employees and organizations engage in D&I practices as
first is to implement mentality reforms and cultivate a corporate
their own responsibility.
culture that is open to trying new things, based on new ideas
obtained by hiring a variety of human resources and listening Reforming Systems and Working Practices
to different points of view, and then learning from failure. The
second is to establish systems and working practice reforms To fully utilize the diversity in human resources, working
practices must be diversified as well. Therefore, we are

75 Shimadzu Integrated Report 2022

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the President Science and Technology and Results Non-Financial Highlights Management Corporate Information

creating opportunities for human resources to move more Improving the Well-Being of Employees and
freely to other jobs or challenges and we are promoting such Organizations
fluidity and taking on challenges in actual practice by increasing
To ensure employees are free to work enthusiastically to
the visibility of human resources. For example, an internal
maximize their potential, it is essential to keep them healthy.
recruiting system was introduced in FY 2022 to offer
Based on our management principle“Realizing Our Wishes
opportunities to participate in projects or challenge oneself in
for the Well-being of Mankind and the Earth,”we are engaged
a new job. In addition, in anticipation of an era when the normal
in three main initiatives for improving the well-being of
human lifespan exceeds 100 years, we are reconsidering
employees. The first involves providing benefits from Shimadzu
current management mandatory retirement and post-retirement
healthcare technology back to employees. Currently, a PET
hiring policies in order to expand opportunities for utilizing
mammography system is used to check for breast cancer in
older or veteran human resources more effectively.
employees and some employees involved in PCR testing
Meanwhile, in addition to achieving working practice diversity,
products are being given PCR COVID-19 tests. Also, beginning
it is also important to clarify corresponding roles and expected
in FY 2022, Shimadzu has been helping employees receive
results for achieving appropriate assessment and
mild cognitive impairment (MCI) examinations using a
compensation systems. Job descriptions are thus being
Shimadzu instrument. The second initiative involves daily health
created for executive management positions to clarify job
management. Five key themes were specified (exercise, diet,
prerequisites and performance expectations with the aim of
sleep, mental health, and not smoking) and measures are
introducing a new human resources system in the next
being implemented to improve the visibility of health trends. A
medium-term management plan that starts in FY 2023.
health app is used to offer events for promoting exercise and
Furthermore, that human resources system will also be
a follow-up system is being established for monitoring daily
deployed for executive management personnel in locations
health via a web-based health check system and having
outside Japan as a step toward introducing a global human
occupational health nurses follow up on any employees that
resources system intended to better utilize human resources
are feeling unwell. The third initiative involves mental health.
outside Japan. However, the process will start with first
Health-check and stress-check data is displayed visually and
reforming human resources systems in Japan and concurrently
used to deploy measures for each step of self-care,
promoting the fluidity of human resources between Group
subordinate-care, counseling, and supporting employees in
companies, such as by accepting personnel from Group
taking and returning from leave days. To promote mental
companies outside Japan.
health, the first priority is to prevent issues and provide
Fostering Personnel/Organizations appropriate treatment as soon as possible. Since last year,
we have been strengthening the company’ s ability to address
Due to the rapid changes occurring in today’ s world, it is mental health issues within the company by implementing
important to develop leaders who can drive the continuous mental health training and encouraging employees to receive
growth of Shimadzu. Currently, we are working on measures mental health management tests. It is important to create
to establish a succession plan for officers and managers, health management systems that make employees feel
increase the visibility of executive management candidates, health management is important and motivates them to take
and implement a systematic training program. A new program action on their own. We will strive to establish health
will also be introduced this fiscal year to strengthen management measures that ensure workplace safety,
management capabilities. In addition, to improve the skills of increase the health literacy of each employee, inspire
each employee and develop their careers, a curriculum and employees to independently engage in maintaining and
learning environment for acquiring necessary skills and improving their health, and improve the well-being of the
knowledge are being provided and employee abilities are overall organization.
being developed through career training targeted for respective
age levels to better utilize the career assets of employees. Investments in Human Capital Linked to
By partnering with universities or other organizations Management Strategies
outside of Shimadzu, we are encouraging employees to
In order to sustain Shimadzu’ s growth and increase
acquire new expertise and cultivate transferable skills in
corporate value as human resources become increasingly
an effort to develop technical human resources with a
fluid, it is essential to clarify what human resources are
broader perspective.
required to accomplish respective management strategies
In the future, we intend to promote the recruitment and
and ensure they are made available. Therefore, in addition to
development of specialist human resources, such as by
strengthening partnerships with relevant departments, we
establishing systems specifically for specialized jobs. By
will also increase the visibility of human resources, increase
providing a variety of experiences and learning opportunities,
the ability of our organization to attract human resources as
we will develop employees with a broad perspective who can
a workplace where they can grow and feel job satisfaction,
think and act on their own. We will also implement employee
and strengthen our human capital investments aimed at
and organizational development measures for achieving both
establishing an environment where necessary human resources
personal and organizational growth.
can be acquired, developed, and allocated.

Shimadzu Integrated Report 2022 76

 Social Report (S)

Customer Satisfaction (CS)

Basic Policy Ensuring Safety for Customers
We shall offer products and services with superior quality at
and Gaining their Trust
reasonable prices that provide maximum value to customers.
We aim to fulfill our social responsibilities and earn
customers’trust by providing them with safe products.
General Policy Specifically, we have established a Basic Policy for Product
(1) Pursuing Customer Satisfaction
Safety to clarify the Shimadzu Group’
s stance on product
We shall offer safe and secure products and services with high
added value that prioritize customer value. liability (PL) and other issues.

(2) Creating New Value Jointly with Customers Basic Policy for Product Safety
We shall create new value by sincerely considering customer views The entire Shimadzu Group will act with the safety and trust of
and wishes. customers as our top priority.

(3) Ensuring Thorough Quality Control and Safety Management Guidelines for action
If a quality control or safety management problem occurs, we shall 1. Comply with laws and regulations
strive to solve the problem quickly and implement thorough 2. Implement safe designs
measures to prevent recurrence. 3. Prevent improper use
4. Ensure product safety throughout the product life cycle
5. Disclose information related to product safety
6. Respond to product accidents

Initiatives to Maintain and 7. Improve quality assurance system

Improve the Quality of Products We conduct risk assessments for all products following
and Services our Basic Policy for Product Safety.

Based on our corporate philosophy and management (1) We verify that the product is designed to ensure safety by
principle, we have established the Basic Quality Assurance considering various customer usage scenarios.
Policy to systematically maintain and improve quality and (2) We have verified through environmental tests and durability tests
that even if the product is subjected to changes in temperature
provide quality that satisfies our customers in all our
and humidity or to shock during transportation, the functionality
products and services. will not be affected and that customers will be able to continue to
operate the product reliably and safely.
Basic Quality Assurance Policy
Let’
s all work hard to provide quality that satisfies our customers
To ensure customers can use our products with peace
around the world at every stage of the product life cycle*.
of mind, we provide information on correct usage and
* The product life cycle is a 12-stage process that encompasses (1) marketing
and market research, (2) product design and development, (3) process planning precautions in the instruction manuals. We also attach globally
and development, (4) purchasing, (5) production, (6) verification, (7) packaging
and storage, (8) sales and delivery, (9) installation and start-up, (10) technical standardized caution and warning labels directly to the
support and ancillary services, (11) post-sale surveys, and (12) disposal or
recycling at the end of product’ s useful life. products to alert customers when the product is being
used.
The director in charge of CS leads the Company-Wide
Quality Assurance Meeting and the Product Liability (PL)
Committee, which discusses product safety and quality issues.
The committee shares and disseminates information on
activities and know-how unique to each business unit and
subsidiary to the entire Group and implements strategic
initiatives to realize quality targets, thereby maintaining and
improving quality and safety.

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the President Science and Technology and Results Non-Financial Highlights Management Corporate Information

Corporate Quality Assurance Meetings and Quality Management

PL Committee Meetings
System (QMS)
Director in charge of CS
Shimadzu Corporation’
s Sanjo Works has obtained ISO 9001
Head Office departments
certification, the international standard for quality
(cross-divisional support)
management systems (QMS) since 1994. They have also
obtained ISO 13485 certification required for medical devices
and JIS Q 9100 certification required for the aircraft
Product safety and quality improvement activities
at business divisions and subsidiaries equipment industry.
QMSs are also introduced at relevant subsidiaries in Japan
Process of ensuring Business Subsidiary Process of ensuring and other countries. As of March 2022, 22 subsidiaries
and improving product division and improving quality
safety in Japan and 33 subsidiaries outside Japan have obtained
Business
division Subsidiary certification. Among them, 20 subsidiaries in Japan are
Gather
information working on improving management level of the Shimadzu
E stablish and about product
maintain PL issues Group in addition to obtaining ISO 9001 certification. These
system
Create PL
Business
division Subsidiary Survey
customer
QMSs are used to assess the effectiveness of measures and
activity plans satisfaction
level
processes for ensuring product quality and safety based
Conduct PL
audits on the Basic Quality Assurance Policy established by the
Shimadzu Group. Then the PDCA cycle is repeated to
achieve further improvements. In this way, we are engaged
in improving customer satisfaction through constant
Analyze
quality improvements at each stage of the product life cycle.
Analyze problem
accident causes, etc.
causes, etc. ISO 9001

Improving Customer Satisfaction

PL prevention
activities Quality
management
PL defense system
activities
At each stage of the product life cycle, we have put in place
Deploy Deploy
corrective corrective mechanisms and systems to respond to market and customer
measures measures
horizontally horizontally requirements and their changes, leading to improved customer
and prevent and prevent
recurrence recurrence satisfaction (CS). For example, to improve the quality of
Accumulate Accumulate
expertise expertise Shimadzu Group products, systems, and services from the
customer’
s perspective, we regularly conduct“CS surveys”to
listen to customer feedback.
The opinions and requests we receive from customers are
valuable. We share these among all concerned parties and
Incorporate feedback into products take measures to improve customer satisfaction. We have also
set up a call center to handle opinions and requests from
customers as needed and respond to them promptly.

Quality Center Dedicated to the Pursuit of the Highest Quality

The mission of the Quality Center, where various analysis and evaluation facilities and functions are
concentrated, is to improve quality from the development and design stages through the manufacturing
stage, as well as to enhance and quickly improve quality in the marketplace. The Quality Center has six
functions, including material analysis, physical property evaluation, safety testing, and EMC
measurement*, and is located at the Shimadzu Head Office site.
Regarding EMC measurements, the center is equipped with four anechoic chambers of various sizes,
including an anechoic chamber for the 10-meter method, and as an accredited testing laboratory
compliant with the international standard ISO/IEC 17025, including measurement and management
procedures and the skills of our measurers, we conduct tests in accordance with standards established
in each country and region. Furthermore, it is registered as an appointed site of TÜV Rheinland Japan
Ltd., an international third-party certification organization, and as a highly credible EMC testing laboratory, Quality Center’
s 10-Meter Method
it guarantees the reliability of Shimadzu products. Anechoic Chamber

* EMC measurement: Electromagnetic compatibility (EMC) test to evaluate whether the electromagnetic waves emitted by a system do not affect surrounding equipment and whether the
system is tolerant enough not to malfunction due to electromagnetic waves from the surrounding area.

Shimadzu Integrated Report 2022 78

 Social Report (S)

Supply Chain Management

Basic Policy “business continuity plan (BCP),”areas that we believe
need to be addressed to deal with growing social concerns
The Shimadzu Group procures items globally and from many and tighter regulations in the future. We will utilize these
suppliers. We view procurement as supporting the foundation guidelines to promote our CSR activities.
of our business activities. Shimadzu is committed to fair trade,
building partnerships with suppliers, and promoting CSR
procurement based on the principles of symbiosis and EQCD
Sustainable Procurement
(environment, quality, cost, and delivery). Activities through the Use of
We also make every effort to respect human rights and Guidelines
reduce environmental impact throughout our entire supply chain.
In March 2022, we conducted a CSR self-assessment
questionnaire survey of 117 major domestic suppliers based
Establishment of CSR on the Shimadzu Corporation CSR Procurement Guidelines.
Procurement Guidelines The survey aims to assess the status of CSR initiatives in the
supply chain and to deepen our business partners’
In recent years, interest in corporate social responsibility (CSR) understanding of Shimadzu’
s CSR procurement philosophy
has been growing worldwide, and from the perspective of and initiatives. For those suppliers identified as having issues
corporate management, non-financial initiatives such as human based on the survey results, we work together to improve the
rights protection, compliance with laws and regulations, level of their operations by introducing and providing specific
environmental conservation, and community contributions are support measures to them through interviews. Going
becoming increasingly important. forward, we will deepen communication with our suppliers and
Based on our corporate philosophy of“Contributing to work with them to build a supply chain that supports a
Society through Science and Technology,”we have been sustainable society.
working to solve various challenges that we face in order to
contribute to the realization of a sustainable society. In order
to continue to meet the diverse demands of our stakeholders,
it is essential that we not only work independently but also
Process for Promoting CSR Procurement (Overall)
receive cooperation from our business partners in the
supply chain. Suppliers
Therefore, in January 2022, we established the Shimadzu
Check the guidelines CSR Procurement Guidelines
CSR Procurement Guidelines as action guidelines related to
Step 1
the Shimadzu Group Sustainability Charter and Procurement
Disclose CSR
Policy. These guidelines define the items that Shimadzu and Procurement
its business partners must address together to fulfill our Guidelines

social responsibilities in the five areas of“human rights and

labor,”
“health and safety,”
“environment,”
“ethics,”and Answer to the questionnaire CSR self-assessment

Step 2
Implement
Shimadzu CSR Procurement Guidelines questionnaire
1. Human Rights and Labor survey (CSR
self-assessment)
Respect for human rights and diversity, elimination of child labor
and forced labor, guaranteed freedom of association, Consider and implement
employment of non-Japanese workers, etc. improvement measures
Step 3
2. Health and Safety
Review and propose
Industrial hygiene, emergency preparedness, employee health support and other
management, etc. measures in line Supplier communication
Introduced by with customer
3. Environment Shimadzu circumstances and
Certification, reduction of environmental impact and CO2 issues

emissions, promotion of energy conservation, and management

of materials used
4. Ethics External Support/Assistance
Compliance, export control, information security, conflict minerals, Government support system/
subsidy business, consulting of
harmony with local communities, etc. specialized institutions
5. BCP (Business Continuity Plan)
Enhance the competitiveness of the entire supply chain
Existence of a plan and status of training and preparation
in preparation for the future
for implementation

79 Shimadzu Integrated Report 2022

 Message from Contributing to Society through Business Overview Financial and Sustainability Financial and 　
the President Science and Technology and Results Non-Financial Highlights Management Corporate Information

The following web page includes information about the topics listed below.
https://www.shimadzu.com/sustainability/approach/social/supply_chain/index.html
Basic Policies, Principles, and Measures (Measures for CSR Procurement, Eliminating Human Rights Violations from the Entire Supply Chain, Measures
and Policies for Conflict Minerals, Analyzing Procured Parts, Materials, and Other Items for Substances Banned by RoHS, Compliance with the Modern
Slavery Act of 2015, and Informational Presentations for Suppliers)

reduction targets by 2030.

CSR Self-Assessment Survey Results
As a company supported by many suppliers, we need to
Self-assessment surveys carried consider not only our own environmental impact but also the
out for 117 suppliers impact throughout the supply chain. We will promote the
80-100 points
reduction of environmental impact through cooperation with
46 companies Measures are underway at an adequate suppliers closely related to our business activities in various
level for all items.
fields.
Measures are underway at a certain
60-79 points level or higher for all items.
32 companies
Green Procurement Initiatives
Appropriate measures are underway
for a limited number of items.

30-59 points Clarify issues for each supplier through

To comply with the laws and regulations of various countries,
39 companies face-to-face interviews and introduce
measures to resolve problems.
such as regulations on chemical substances contained in
products, we are actively engaged in green procurement,
which prioritizes the purchase of raw materials with a low
environmental impact. Specifically, we are implementing a
Human Rights Measures three-pronged approach: obtaining non-inclusion certificates,
conducting supplier RoHS* audits, and analyzing samples of
If the Shimadzu Group Policy Regarding Conflict Minerals procured products.
determines that a product's components or raw materials To deepen understanding of our green procurement
contain conflict minerals*, the Group will take appropriate initiatives, we hold green procurement briefing sessions for
action, such as immediately suspending the use of such our suppliers every year. In FY 2021, 448 companies
minerals in consultation with the relevant suppliers. In addition, participated in the sessions online.
we are working to track and avoid use throughout the Since September 2019, we have been participating in the
supply chain by managing transactions in accordance with supply chain subcommittee of the Global Compact Network
the OECD Recommendations on Due Diligence Guidance Japan to keep abreast of the latest information and share
issued by the Organization for Economic Co-operation and information with other companies to further improve our efforts.
Development (OECD), and by conducting smelter surveys Furthermore, for member companies of the Shimadzu
using the Conflict Minerals Reporting Template issued by Cooperative Association, we also offer seminars on
Responsible Minerals Initiative (RMI). environmental management or SDGs and promote supplier
We also publish a statement on the UK Modern Slavery environmental activities, such as jointly collecting waste plastics
Act 2015 every year, and we have proceeded to sign trade or auditing energy savings. In addition, we monitor the green
master agreements or memorandums of understanding procurement rate of office supplies on a monthly basis.
with 502 companies that contain provisions to address the * RoHS is a European Union directive concerning restrictions on the use of specific
hazardous substances in electronic and electrical equipment.
human rights violations outlined in the statement.
* Conflict minerals are four types of minerals: gold, tin, tantalum and tungsten, which 749 of 816 (91% implementation rate)
have been identified as sources of funding for armed groups. <Breakdown>
Number of Domestic
499 of 566 purchasing suppliers (88% implementation rate)
Suppliers Monitored
250 of 250 affiliated companies (100% implementation rate)
(RoHS monitoring only)

Promoting Supply Chain CO2

Note: The denominator is the number of applicable
companies.

Emission Reductions Percentage of

Non-Inclusion
93% (for about 83,000 items)
Note: For items subject to 10 RoHS restrictions.
Guarantees Obtained

Shimadzu and five of our partner companies have been

chosen to participate in the Kyoto Prefecture’
s Supply Chain Analyzing Procured Parts, Materials, and Other
CO2 Emission Reduction Project as demonstration partners. Items for Substances Banned by RoHS
This project supports listed companies in their efforts to reduce Randomly sampled RoHS-compliant parts, assemblies, and
greenhouse gas emissions in collaboration with their suppliers secondary materials procured from suppliers are analyzed in
s RoHS laboratory to confirm the content of substances
Shimadzu’
with the aim of realizing a decarbonized society. As a result
banned by the RoHS directive. The RoHS laboratory also accepts
of being selected, we will work with the five collaborating
s analytical expertise.
non-Shimadzu visitors to share Shimadzu’
partners to conduct energy conservation audits for each
company and reduce CO2 emissions. 11,000 for six RoHS-banned substances and
Number of 7,400 for four additional banned substances
In addition, we will carry out energy-saving audits for 83 Samples Note: Total as of FY 2021-end. About 77,000 applicable
major domestic partner companies by 2025, set reduction Analyzed items (subject to 10 RoHS restrictions) are regularly sampled
by the system.
targets for each company in 2026, and aim to achieve the

Shimadzu Integrated Report 2022 80

 Social Report (S)

Working with Stakeholders in the Community

New Partnerships in the Recognized as a Kansai
Community University SDGs Partner
We have been supporting customers affiliated with academic Since 2019, Shimadzu and Kansai University have been
institutions, research institutions, medical institutions, local exploring ways to partner with each other, sharing mutual
governments, and companies in various industries in their resources and awareness of issues through exchanges of
efforts to solve the problems they face by providing solutions ideas on the theme of contributing to the achievement of
through our business activities. Behind the problems that the SDGs.
customers face, there are even higher-level issues and Following the establishment of the SDGs Partner Program
problems faced by their stakeholders and society as a whole. by Kansai University in April 2021, we applied to become
We recognize that indirectly solving these societal challenges an SDGs Partner and received certification in June of the
and supporting the creation of innovations is one of our roles same year. This program is an initiative to promote further
in achieving a sustainable society. activities to achieve the SDGs through the exchange of human
However, to quickly solve society’
s most critical issues, and intellectual resources and mutually utilizing physical
the starting point, first and foremost, is to find those issues. resources among industry, academia, and government.
Then, it is necessary to provide solutions for solving problems Local governments and companies in various industries
while utilizing new technologies and mechanisms and applying are participating.
existing technologies to the societal challenges we have Since receiving partner certification, we have introduced
identified. Since it is challenging for a single company to tackle our SDG initiatives in lectures given by Kansai University and
the entire process alone, it is essential to have partners who hosted company tours organized by the Center for Innovation
have cutting-edge technological development capabilities and & Creativity of Kansai University. Through these activities, we
specialized expertise and who bring together the voices of a have helped nurture the next generation with educational
wide range of stakeholders. activities such as by introducing Shimadzu’
s history of solving
We are therefore developing new partnerships with societal challenges to students who aspire to become
academic and research institutions that have a more entrepreneurs.
comprehensive network of stakeholders than ours and are more We aim to further contribute to solving challenges and
likely to be involved in tackling a broad range of societal achieving the SDGs by learning from each other’
s practices
challenges, as well as with regional financial institutions as and by contributing to cutting-edge research and development
partners. Although this is a new initiative that has only just at Kansai University.
begun, we aim to expand our business activities to contribute
to a sustainable future by uncovering new societal challenges
while bringing together the strengths and resources of each
of our partners.

Tour Organized by the Center for

Innovation & Creativity of Kansai
University

Partner Testimonials

Kansai University established the SDGs Partner Program in April 2021 to promote the SDGs through partnerships.
Shimadzu Corporation has long collaborated with us on various initiatives, including tours of the Healthcare
R&D Center at the Shimadzu Head Office site, on-site classes at a school affiliated with us, and cooperation in
job placement programs for international students. It is no exaggeration to say that the establishment of the
SDGs Partner Program originated from our collaboration with Shimadzu Corporation.
The SDGs include a wide range of societal challenges, and there is a limit to what the university alone can
solve, so once again, we realize the importance of partnerships. To achieve the 17 SDG targets, which include
sharing and complementing expertise and technology through partnerships, we will continue working with
Shimadzu to help solve societal challenges.

Mitsuo Ueda
(KANDAI for SDGs Promotion
Project Secretariat)
Deputy Director, Bureau of the
President, Kansai University

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the President Science and Technology and Results Non-Financial Highlights Management Corporate Information

Concluded a Comprehensive As a specific initiative, Shimadzu will provide solutions to

technical issues faced by the Bank of Kyoto’
s business
Collaborative Agreement with the partners by offering analytical, measuring, and other scientific
Bank of Kyoto for the Realization technologies to support their efforts to develop new materials

of a Sustainable Society and products, reduce their environmental impact, and so on.
In addition, the Bank of Kyoto will provide financing and
consulting services to Shimadzu Cooperative Association
In recent years, an increasing number of financial institutions
and other suppliers to promote energy conservation and
across the country have been supporting the activities of their
SDG initiatives, thereby helping to strengthen the
business partners and local communities in order to help
supply chain.
realize a sustainable society. In addition to providing financial
Through this mutual cooperation effort, each of us will
products, financial institutions can easily address various
contribute to the sustained growth of society through the
societal challenges through business matching and consulting
revitalization of local industries while generating new business
services that serve to mediate between business partners.
activities and business opportunities at the same time.
Given this backdrop, in December 2021, Shimadzu
concluded a Comprehensive Collaborative Agreement for the
Realization of a Sustainable Society with the Bank of Kyoto,
Ltd., which is also headquartered in Kyoto City. Through
comprehensive collaboration between manufacturers and
financial institutions, which is rarely seen in Japan, we aim to
Nobuhiro Doi, Bank of Kyoto
achieve sustained growth and regional revitalization by utilizing President and CEO (left) and
Teruhisa Ueda, Shimadzu
the management resources of both organizations effectively. Chairman (then President) (right)

Providing solutions through

analytical, measuring, and other
Bank of Kyoto’s scientific technologies
business partners

Cooperation

Shimadzu’s suppliers
(Shimadzu Cooperative
Providing solutions through Association, etc.)
financial support and consulting

Contributing to the Sustained Growth of Society

through the Revitalization of Local Industries

Partner Testimonials

Promoting SDGs and decarbonization initiatives in the region has become an important role of local financial
institutions. Given the unique characteristics of the local economy, we believe that collaboration between core
regional companies and their suppliers is important for promoting SDGs and decarbonization in Kyoto, and we
thought that our bank, which does business with both parties, could act as a bridge and provide support.
This collaboration with Shimadzu Corporation is a framework for collaboration among different industries
that is unprecedented in Japan and is the only project adopted by financial institutions in the Kinki region as part
s 2021 ESG Regional Financial Promotion Project.
of the Ministry of the Environment’
Although this program started only last year, the number of cases of support for suppliers has been steadily
increasing, and we are very much looking forward to its further development.
Shimadzu Corporation and the Bank of Kyoto hope to build on their business relationship of more than 70
years and continue to work hand in hand to realize a sustainable society while embracing a shared desire to
contribute to the local community. Kiyonori Inokuma
Bank of Kyoto, Ltd.
General Manager, Public
Relations and SDGs Office,
Corporate Planning Department

Shimadzu Integrated Report 2022 82

 Governance Report (G)

Policy on Corporate Governance

Basic Policy
The Shimadzu Group will earn the trust of stakeholders and In addition to improving corporate governance measures,
endeavor to achieve continuous growth and increase medium- Shimadzu is also committed to improving the effectiveness
and long-term corporate value. The Shimadzu Group will of governance practices by periodically reviewing the CG
establish and improve systems for ensuring corporate Policy with respect to changes in the circumstances of such
governance, which is considered a core basis for achieving measures or external conditions.
management transparency and fairness and for promoting
management dynamism by increasing the speed and boldness Corporate Governance Policy
of decision-making and implementing measures. 1. Appropriate Cooperation with Stakeholders
The Corporate Governance Policy (hereinafter“CG Policy”) 2. Securing the Rights and Equal Treatment of Shareholders
3. Ensuring Appropriate Information Disclosure and Transparency
was established in December 2015 as a declaration of
4. Dialogue with Shareholders
Shimadzu’
s stance regarding actually implementing the Corporate
5. Responsibilities of the Board of Directors, etc.
Governance Codes (hereinafter“CG Codes”) in practice.

Corporate Governance Measures

Shimadzu continues to maintain full compliance with the CG The five main new measures included in Shimadzu’
s New
Codes revised in June 2021 (hereinafter“New Codes”), including Codes are indicated below.
revisions and newly established clauses. Then in September
2021, after the resolution to list Shimadzu Corporation on the
Tokyo Stock Exchange Prime Market, a revised CG Policy and
CG Policy
CG Report were released with additional codes included for https://www.shimadzu.com/ir/governance/policy.html
compliance with Prime Market-specific requirements. CG Report
https://www.shimadzu.com/ir/governance/report.html

Shimadzu Group In September 2021, the CSR Charter was extensively revised and a Shimadzu Group Sustainability
Sustainability Charter Charter was established to specify basic policies regarding sustainability.
established →Refer to p. 57 of the Integrated Report.
1. Sustainability
Information disclosed Shimadzu discloses information recommended by the TCFD on the Shimadzu website and in the
based on TCFD Integrated Report, and will disclose even more information in the future as well.
recommendations, etc. →Refer to p. 61 of the Integrated Report.

Approach and goals Shimadzu has specified the company’ s approach for ensuring the diversity of core personnel and
specified for ensuring disclosed corresponding results and target values for key criteria on the Shimadzu website, such as
2. Diversity
the diversity of core the ratio of women in management positions.
personnel →Refer to p. 71 of the Integrated Report.

Seven areas of knowledge and experience have been defined as important for the current Board of
Directors, with a corresponding skill matrix prepared and disclosed for each director: (1) Corporate
management, (2) International experience, (3) Technology and IT, (4) Marketing and sales, (5) Finance
Board of Directors skill
and accounting, (6) Compliance and risk management, (7) Personnel/human resources development.
matrix created
Nevertheless, the above areas of knowledge and experience will continue to be reassessed,
3. Fully Utilizing as necessary, based on external business conditions and Shimadzu circumstances.
Board of
→Refer to p. 91 of the Integrated Report.
Director
Functions
In July 2021, a general rule was specified to appoint an outside director to chair the Appointment and
Chair of Appointment
Compensation Committee and Outside Director Wada was appointed to chair the committee.
and Compensation
The composition of the Appointment and Compensation Committee is specified as comprising
Committee changed to
2 representative directors and 4 outside directors, for a total of 6 committee members.
an outside director
→Refer to p. 94 of the Integrated Report.

Disclosure of business Shimadzu discloses business portfolio information in the medium-term management plan and will
4. Business
portfolio in medium- continue to reassess the business portfolio in conjunction with reviewing the medium-term
Portfolio
term management plan management plan.

Direct line of reporting

Company regulations were revised to establish a path for internal audit department members to report
from the internal audit
5. Dual Lines of directly to the Board of Directors, in addition to previously established lines of reporting to the President
departments to the
Reporting and Audit & Supervisory Board members.
Board of Directors
→Refer to p. 97 of the Integrated Report.
established

83 Shimadzu Integrated Report 2022

 Message from Contributing to Society through Business Overview Financial and Sustainability Financial and 　
the President Science and Technology and Results Non-Financial Highlights Management Corporate Information

For more details, refer to the website.

https://www.shimadzu.com/ir/governance/

Corporate Governance
organization.html
Corporate Governance System

Corporate Governance System

One-half (four) of the eight members of the Board of Directors A system of corporate auditors is used to audit the legality
are outside directors, which increases management and appropriateness of management operations,
transparency and objectivity. Inside directors, familiar with with two internal and two outside Audit & Supervisory Board
business operations and circumstances within the company, members. The Audit & Supervisory Board and its members
and outside directors, who have extensive experience, attend Board of Directors meetings, where they proactively
knowledge, abilities, and insights, discuss issues from various execute auditing functions, such as by expressing their opinions
perspectives, so that decisions can be appropriately made and or exchanging views with directors or administrative corporate
monitored regarding strategies and policies for increasing executive officers. The President, administrative corporate
medium- and long-term corporate value. Outside directors are executive officers, and the Executive Committee are designated
mainly appointed from candidates with extensive corporate as the agencies for appropriately and quickly executing
management experience in a wide range of industries. Women administrative processes based on decisions made by the Board
and others with diverse backgrounds are also appointed as of Directors.
outside directors in order to provide more diversity.

Corporate Governance System

Annual Meeting of Shareholders

Select/Dismiss Select/Dismiss

Authorize/Obtain Advice Select/Dismiss

Nominating Board of Directors
/Compensation Chair: Chairman Report
Committee (directors and outside directors)
Audit & Supervisory Board (Audit & Supervisory Board Members and

Resolve and Report/Consult Discuss/Report Select/Monitor

Report Supervise
Outside Audit & Supervisory Board Members)

Report Direct and Order

Accounting auditors (auditing agency)

Audit
President
Direct and Meeting of Executive Officers Report
Order Chair: President (Executive Officers)

Sustainability Meeting

Report Accounting
Risk
Report Instruct Management Environment Audit
and Corporate Meeting
Internal audit

Ethics Meeting
Department

Cooperate Internal Audit Control

Administrative departments/ Report
Research departments/ Respective
Manufacturing and sales divisions Departments
Activities
Control

responsible for risk

Consult and Report Guide and Support
Special Committees

Subsidiaries
Integrate
Cooperate

Cooperate

Shimadzu Integrated Report 2022 84

 Governance Report (G)
Corporate Governance

Profiles of Directors and Audit & Supervisory Board Members (As of June 8, 2022)

Directors

1 Teruhisa Ueda 2 Yasunori Yamamoto

Representative Director, Representative Director, President
12 10
Chairman of the Board
CEO
3 9 11 4 Chair of the Board of Directors
7
6 8
Apr. 1982 Joined Shimadzu Corporation Apr. 1983 Joined Shimadzu Corporation

5 1 2 Jun. 2007 Corporate Officer

Jun. 2007 Deputy General Manager, Analytical & Measuring
Oct. 2003 Coordination Manager, Testing Machines Business Unit,
Analytical & Measuring Instruments Division
Instruments Division Jun. 2013 President, Shimadzu Europa GmbH (Germany)
Jun. 2011 Director, Member of the Board Jun. 2014 Corporate Officer
Jun. 2011 General Manager, Analytical & Jun. 2017 Managing Executive Officer
Measuring Instruments Division Jun. 2017 In charge of manufacturing, information system, and CS
Jun. 2013 Managing Executive Officer Jun. 2017 Deputy director in charge of technology research
Jun. 2014 Senior Managing Executive Officer Apr. 2020 In charge of corporate strategy planning and corporate
Jun. 2015 President and Representative Director communications
Jun. 2015 CEO Jun. 2020 Director, Member of the Board
Apr. 2022 Chairman and Representative Director (current) Apr. 2021 CFO
Apr. 2022 Chairman of the Board (current) Apr. 2022 President and Representative Director (current)
Apr. 2022 CEO (current)

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the President Science and Technology and Results Non-Financial Highlights Management Corporate Information

3 Yasuo Miura 4 Akira Watanabe 5 Hiroko Wada

Director Director, Senior Managing Executive Officer Outside Director

CFO, in charge of corporate strategy planning Representative of Office WaDa

and corporate communications Outside Director of Coca-Cola Bottlers Japan
Holdings Inc.
Outside Director, Audit & Supervisory Committee
Member of Unicharm Corporation

Apr. 1980 Joined Shimadzu Corporation Apr. 1985 Joined Shimadzu Corporation Apr. 1977 Joined Procter & Gamble Sunhome Co., Ltd. (currently
Apr. 2005 General Manager, Corporate Strategy Planning Apr. 2009 General Manager of Turbo Molecular Pump Business Procter & Gamble Japan)
Department Unit and concurrently Deputy General Manager of Sales Jan. 1998 Vice President, Procter & Gamble U.S., responsible for
Jun. 2007 Corporate Officer & Marketing Department, Semiconductor Equipment corporate new venture Asia
Jun. 2009 President, Shimadzu Europa GmbH (Germany) Division (currently Industrial Machinery Division) Mar. 2001 President, Dyson Limited
Jun. 2013 Director, Member of the Board Apr. 2011 General Manager of Sales & Marketing Department and Apr. 2004 President and CEO, Toys “R” Us, Japan
Jun. 2013 Managing Executive Officer concurrently General Manager of Turbo Molecular Pump Nov. 2004 Established Office WaDa (current)
Jun. 2013 In charge of finance (currently finance/accounting) Business Unit, Semiconductor Equipment Division May 2009 Outside Director, Aderans Holdings Company (currently
Jun. 2013 In charge of corporate marketing Jun. 2013 Deputy General Manager of the Semiconductor Aderans Company Limited)
Jun. 2015 General Manager, Tokyo Office Equipment Division, concurrently General Manager of Apr. 2016 Advisor, Nutraceutical Business, Otsuka Pharmaceutical
Jun. 2017 Senior Managing Executive Officer Sales & Marketing Department and General Manager of Co., Ltd.
Apr. 2019 Senior Corporate Executive Officer Turbo Molecular Pump Business Unit Jun. 2016 Director, Shimadzu Corporation (current)
Apr. 2020 CFO Jun. 2016 Corporate Officer
Apr. 2021 In charge of risk management Jun. 2016 General Manager, Industrial Machinery Division
Apr. 2019 Managing Executive Officer
Apr. 2020 General Manager, Industrial Machinery Division and
concurrently General Manager, Fluidics Systems Division
Apr. 2022 Senior Managing Executive Officer (current)
Apr. 2022 CFO and in charge of corporate strategy planning and
corporate communications (current)
Jun. 2022 Director, Member of the Board (current)

6 Nobuo Hanai 7 Yoshiyuki Nakanishi 8 Nami Hamada

Outside Director Outside Director Outside Director, Member of the Board

Outside Director of Perseus Proteomics Inc. Advisor of DIC Corporation Cofounder and Managing Director, Mile High
Outside Director of IHI Corporation Capital Inc.
Outside Director of The Japan Steel Works, LTD. Outside Director (Audit & Supervisory
Committee Member), Coca-Cola Bottlers Japan
Holdings Inc.
Outside Director (Audit Committee Member),
MetLife Insurance K.K.

Apr. 1976 Joined Kyowa Hakko Kogyo Co., Ltd., (currently Kyowa Apr. 1978 Dainippon Printing Ink Manufacturing Co., Ltd., Jul. 1992 Joined Shearson Lehman Brothers Holdings Inc.
Kirin Co., Ltd.,) (currently DIC Corporation) Oct. 1996 Vice-President, Lehman Brothers Holdings Inc.
Jun. 2006 Executive Officer Kyowa Hakko Kogyo Co., Ltd. Apr. 2010 Corporate Officer, DIC Corporation Jun. 1999 Senior Vice-President, Lehman Brothers Holdings Inc.
Apr. 2009 Managing Executive Officer, Kyowa Hakko Kirin Co., Ltd. Jun. 2011 Director, DIC Corporation May 2004 Representative Director, HDH Advisors Japan Ltd.
Jun. 2009 Director of the Board, Managing Executive Officer, Apr. 2012 Representative Director, President and CEO, Dec. 2006 Principal, HDH Capital Management Pte. Ltd.
Kyowa Hakko Kirin Co., Ltd. DIC Corporation Mar. 2009 Cofounder and Managing Director,
Mar. 2010 Director of the Board, Senior Managing Executive Officer, Jan. 2018 Chairman of the Board of Directors, DIC Corporation Mile High Capital Inc. (current)
Kyowa Hakko Kirin Co., Ltd. Jan. 2021 Director, DIC Corporation Aug. 2017 Director, Ecoplexus Japan K.K.
Mar. 2012 Executive Director of the Board, President and Chief Mar. 2021 Advisor, DIC Corporation (current) Feb. 2019 Chief Operating Officer, Vesper Group Japan K.K.
Executive Officer, Kyowa Hakko Kirin Co., Ltd. Jun. 2021 Director, Shimadzu Corporation (current) Jun. 2022 Director, Shimadzu Corporation (current)
Mar. 2018 Executive Director of the Board, Chairman and Chief
Executive Officer, Kyowa Hakko Kirin Co., Ltd.
Mar. 2019 Director of the Board, Chairman, Kyowa Hakko Kirin Co., Ltd.
Jun. 2020 Director, Shimadzu corporation (current)

Audit & Supervisory Board Members

9 Hiroyuki Fujii 10 Makoto Koyazaki 11 Masahiro Nishio 12 Tsuyoshi

Senior Audit & Supervisory Audit & Supervisory Board Member Outside Audit & Supervisory Nishimoto
Board Member Board Member
Outside Audit & Supervisory
Board Member
Outside Corporate Auditor of Director, Nishio Certified Public
Dai Nippon Toryo Co., Ltd. Accountant Firm
Partner of Hibiya Park Law Offices
External Audit & Supervisory Board
Statutory Auditor of Enigmo Inc.
Member of Mandom Corporation
Statutory Auditor of Broadleaf
Outside Auditor of Samco Inc.
Co., Ltd.

Apr. 1981 Joined Shimadzu Corporation Jan. 1991 Joined Shimadzu Corporation Nov. 1974 Joined Daiwa Accounting Office Oct. 2000 Registered as attorney-at-law
Apr. 2005 General Manager, Apr. 2011 General Manager, Business Planning (current KPMG AZSA LLC) Dec. 2002 Joined Hibiya Park
Human Resources Department Department, Shimadzu International Trading Mar. 1978 Became a chartered accountant Law Offices (current)
Jun. 2007 Corporate Officer (Shanghai) Co., Ltd. (currently Shimadzu Jan. 2015 Established Nishio Certified Public Jun. 2020 Audit & Supervisory Board Member,
Jun. 2009 Director (China) Co., Ltd.) Accountant Firm (current) Shimadzu Corporation (current)
Jun. 2013 Senior Audit & Supervisory Board Jun. 2012 General Manager, Corporate Strategy Jun. 2015 Audit & Supervisory Board Member,
Member (current) Planning Department Shimadzu Corporation (current)
Apr. 2016 President and CEO, Shimadzu GLC Ltd.
Apr. 2019 Senior Manager, Audit & Supervisory Board
Members’ Office
Jun. 2019 Audit & Supervisory Board Member (current)

Shimadzu Integrated Report 2022 86

 Governance Report (G)
Corporate Governance

Messages from Outside Directors

To achieve sustained growth for the Shimadzu Group and increase the corporate value in the medium and long term, we have
used the establishment of the Corporate Governance Codes as an opportunity to implement a wide variety of governance reforms.
We asked the Outside Directors currently working with Shimadzu to provide their frank comments about future issues they may
have noticed as business conditions have changed for the Board of Directors or hopes they have for Shimadzu, for example.

Expecting Sustained Growth by

Focusing Management Resources
on Important Issues

Despite facing a second year of impacts from the COVID-19 pandemic,

the past year has been a good year for Shimadzu, with steady progress
toward achieving results. However, rather than feeling content with the
good results, it is important to take an approach of challenging oneself.
Hiroko Wada Reviewing the results, we see several issues that we need to tackle in order
to ensure Shimadzu reaches its peak potential. Development of human
Outside Director
resources is necessary to generate the next generation of leaders that will
Term of office as Independent
be needed as Shimadzu aims to achieve global growth, and organizational
Director: 6 years
reforms are necessary to promote diversity. However, based on my
experience, the progress of such measures has been slow and lacking.
Sufficient human resources with new skills and who can drive the company
forward must be prepared. Although governance improvements are being
achieved, Shimadzu must quickly start doing what needs to be done to
ensure governance practices actually reach the perhaps excessively large
number of subsidiaries throughout the world. Digital transformation (DX)
reforms have only just started. They will help ensure additional business
growth throughout the organization. Rather than implementing only minor
reforms, it will require courage and passion to implement the major reforms
necessary for avoiding slower business growth or stumbling due to any big
problem in the near future. In terms of strengthening corporate strategy,
it is important to reassess the strategy by reviewing the current business
portfolio to create new Shimadzu strengths as well as accelerate growth
in European and U.S. markets. It is good to clarify important issues,
so I hope the new organization headed by new President Yamamoto and
new Chairman Ueda will focus management resources on important issues
and be united in ensuring sustained growth.
To help Shimadzu achieve additional growth, as an outside director
I intend to promote more active discussions and real solutions for important
topics within the Board of Directors. As the Chair of the Appointment and
Compensation Committee, I intend to increase committee effectiveness
and offer appropriate advice to the director in charge.

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Hoping for a Release of New

Healthcare Products in Europe
and the United States

Despite the COVID-19 pandemic and other uncertainties in FY 2021,

Shimadzu managed to achieve record profits with the overseas sales ratio
reaching 53%. That success was presumably because measures to
improve overall corporate governance and strengthen businesses in North
Nobuo Hanai America and Europe are bearing fruit. On the other hand, from a global
perspective, competitors also achieved impressive results due to strong
Outside Director
demand, so it does not necessarily mean Shimadzu is now in an
Term of office as Independent
advantageous position. One characteristic example is that in past and
Director: 2 years
current medium-term management plans, Shimadzu has invested R&D
resources in the healthcare field and that resulted in successfully deploying
various products with technical superiority for infectious diseases, dementia,
and cancers in Japanese markets. On the other hand, Shimadzu has
deployed almost no such products in markets outside Japan. Deploying
products in North American and European markets is particularly important
because it can have spillover effects in other countries, so Shimadzu should
consider releasing new healthcare products in North America and Europe
first. Similarly, Shimadzu should also consider releasing new high-end
analytical products in those markets first. An effective way to create globally
successful products is to develop them in a highly competitive environment,
which makes it important to invest in human capital for that purpose.
Considering that current operating circumstances are providing growing
cash reserves, Shimadzu could engage in M&A in North America and Europe
and probably use M&A to hire top talent in those markets. That would
probably also require changing the company culture that was established
mainly by Japanese, so that it is more open from the perspective of
personnel outside Japan. As an outside director, I hope Shimadzu will
provide some opportunities for us to interact with non-Japanese Shimadzu
personnel so that we can better understand actual circumstances and offer
better advice.

Shimadzu Integrated Report 2022 88

 Governance Report (G)
Corporate Governance

Messages from Outside Directors

Sustainability Management
Requirements

After roughly a year has passed since I was appointed as an outside

director, I think Shimadzu corporate governance systems are now at an
appropriately healthy level for the Prime Market. Shimadzu has made
steady progress during the past year alone by going beyond simply
Yoshiyuki Nakanishi establishing a basic framework to also quickly implementing measures in a
solid manner.
Outside Director
After all, sustainability management practices should be implemented in
Term of office as Independent
coordination with a business portfolio that contributes to that kind of
Director: 1 year
healthy corporate governance and sustained growth. Currently,
the Shimadzu organization comprises four business segments centered
around analytical and measuring instruments, but in the future, overall
corporate value needs to be increased by not only establishing even more
business strategies for individual business segments, but also efficiently
allocating resources to each segment. That will make it essential to
establish new business portfolio management systems and then implement
corporate strategies based on those systems. I think that is the most
important issue that should be discussed at Board of Directors meetings.
Shimadzu operations are becoming increasingly globalized, with the
consolidated net sales from outside Japan now exceeding 50%. However,
at this stage, Shimadzu has merely reached the starting line for becoming
what can be called a truly global company. Therefore, I look forward to
sharing views about strengthening risk management and corporate
governance, establishing a human resources strategy, and addressing
other urgent issues at a global level, and to offering appropriate and
valuable advice.

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the President Science and Technology and Results Non-Financial Highlights Management Corporate Information

Fulfilling my Responsibility for

Leading Shimadzu Corporation in
a Direction Expected by
Stakeholders

Thank you for appointing me as a new outside director. Most of my previous

work has been in the financial industry. Using my experience in corporate
Nami Hamada finance and as an M&A advisor at a foreign financial institution in Japan,
the investor perspective I cultivated at an asset management firm, and the
Outside Director
diverse points of view I learned from living outside Japan for 17 years and
Newly appointed raising children as a working parent, I want to fulfill my responsibility for
leading Shimadzu Corporation in a direction expected by stakeholders.
Shimadzu’
s slogan for the medium-term management plan is“Become a
Company That Solves Challenges in Society in Collaboration with Partners.”
The analytical and measuring instrument products that account for over 60
percent of Shimadzu sales, such as products for developing drugs we all
need for living worry-free lives, for ensuring food hygiene, and for reducing
environmental pollution, enable the visualization and analysis of problems
and contribute to the development of solutions by customer companies.
Shimadzu must actively invest in developing human resources, digital
transformations (DX), and innovation even during times when business
conditions involve uncertainties, such as geopolitical risks, inflation, a weak
yen, or supply chain problems. At Board of Directors meetings, in addition to
offering fair supervision, I also hope to serve in fulfilling my responsibility for
ensuring the management team takes appropriate risks, Shimadzu becomes
a company that contributes even more to society through science and
technology, and corporate value increases.

Shimadzu Integrated Report 2022 90

 Governance Report (G) For more details, refer to the website.
https://www.shimadzu.com/ir/governance/skill_matrix.html
Corporate Governance

Directors' Skill Matrix

The composition of the Shimadzu Board of Directors is executing important business activities based on extensive
determined based on achieving a size and diversity appropriate discussion by the Board of Directors and functions for
for deploying businesses, the given business environment, and appropriately supervising and auditing such business execution,
other factors. Shimadzu deploys businesses globally based on currently the following areas of knowledge and experience are
the corporate philosophy“Contributing to Society through considered important for the Board of Directors: company
Science and Technology”in four business segments—Analytical management, international experience, technology/IT, sales/
& Measuring Instruments, Medical Systems, Aircraft Equipment, marketing, finance/accounting, compliance/risk management,
and Industrial Machinery. and personnel/human resources development. Directors are
In particular, Shimadzu is involved in using the company’
s appointed from candidates with appropriate knowledge and
strengths to create new businesses in healthcare fields based on experience in the above areas, and these same areas will
merging technologies from both the Analytical & Measuring continue to be reassessed based on external business
Instruments and Medical Systems segments. conditions and company circumstances.
From the perspective of managing the company in this way,
in order to achieve a good balance between decision-making for

Knowledge/Experience of Directors
Personnel/
Name Compliance/
Company International Technology/ Sales/ Finance/ Human
Risk
Management Experience IT Marketing Accounting Resources
Management
Development

Teruhisa Ueda ● ● ● ●

Yasunori Yamamoto ● ● ●

Yasuo Miura ● ● ● ●

Akira Watanabe ● ●
Directors
Hiroko Wada Outside Shimadzu ● ● ● ●

Nobuo Hanai Outside Shimadzu ● ● ●

Yoshiyuki Nakanishi Outside Shimadzu ● ● ●

Nami Hamada Outside Shimadzu ● ● ● ●

Hiroyuki Fujii ● ● ●
Audit &
Supervisory Makoto Koyazaki ● ●
Board Masahiro Nishio Outside Shimadzu ● ●
Members
Tsuyoshi Nishimoto Outside Shimadzu ● ●

Note: The above is not intended as a complete list of knowledge and experience held by members of the Board of Directors and Audit & Supervisory Board.

Reasons for Appointing Outside Directors and Audit & Supervisory Board Members and Description of Main Activities
Outside Director Independent
and Audit & Director and Audit Attendance during
Category Name Reasons for Appointment and Description of Main Activities
Supervisory & Supervisory FY 2020
Board Member Board Member

Based on her extensive global business experience as a director of a multinational

company and CEO of a Japanese corporation and her broad knowledge about • Attended 13 of 13
marketing, human resource development, and diversity, she actively expresses views Board of Directors
and offers recommendations that strengthen the decision-making and supervisory meetings
Independent Hiroko
Reappointed functions of the Board of Directors. Also, as a member of the Appointment and • Attended 6 of 6
Director Wada
Compensation Committee, she participates in discussions about improving Appointment and
the transparency and fairness of director appointment/removal and compensation Compensation
decisions. She was appointed because of her anticipated role in contributing to Committee meetings
sustaining growth and increasing the corporate value of the Shimadzu Group.
Outside
Directors Based on his extensive management experience as a CEO of a major Japanese
pharmaceutical company and global knowledge about R&D and the pharmaceutical • Attended 13 of 13
industry in Japan and throughout the world, he actively expresses views and offers Board of Directors
recommendations that strengthen the decision-making and supervisory functions of meetings
Independent Nobuo the Board of Directors. Also, as a member of the Appointment and Compensation
Reappointed • Attended 6 of 6
Director Hanai Committee, he participates in discussions about improving the transparency and
fairness of director appointment/removal and compensation decisions. He was Appointment and
appointed because of his anticipated role in contributing to sustaining growth and Compensation
increasing the corporate value of the Shimadzu Group based on his knowledge of Committee meetings
major markets.

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 Message from Contributing to Society through Business Overview Financial and Sustainability Financial and 　
the President Science and Technology and Results Non-Financial Highlights Management Corporate Information

Reasons for Appointing Outside Directors and Audit & Supervisory Board Members and Description of Main Activities
Outside Director Independent
and Audit & Director and Audit Attendance during
Category Name Reasons for Appointment and Description of Main Activities
Supervisory & Supervisory FY 2020
Board Member Board Member

• Attended 10 of 10 Board
He offers extensive management experience as the CEO of a global chemical of Directors meetings
company and global knowledge about chemical industries throughout the world, • Attended 5 of 5
Independent Yoshiyuki management strategies, manufacturing, marketing, and other expertise. Given Appointment and
Reappointed
director Nakanishi his knowledge of major markets of the Shimadzu Group, he was appointed in Compensation
anticipation of his valuable advice regarding management and to serve the role Committee meetings
of appropriately supervising the execution of business operations. (Director, Shimadzu
Corporation)
Outside
Directors
Nami Hamada offers a wealth of knowledge about finance and accounting, such
as from operating a financial consulting firm, extensive experience managing
business from a global perspective, such as while managing a Japanese
Newly Independent Nami subsidiary of a foreign securities firm, and knowledge about developing human
ー
appointed director Hamada resources. She was appointed in anticipation of her valuable advice regarding
Shimadzu Group management based on her extensive knowledge about
finance, accounting, and other areas and to serve the role of appropriately
supervising the execution of business operations.

Based on his extensive experience and knowledge from many years of working • Attended 13 of 13 Board
as a certified public accountant, he actively offers his opinions at Board of of Directors meetings
Independent Masahiro Directors meetings and other situations. He was appointed in anticipation of his
Retained • Attended 17 of 17 Audit &
director Nishio role in helping to improve the governance of the Shimadzu Group by gathering
information from internal control departments and other sources, and providing Supervisory Board
opinions regarding ensuring the financial health of the Shimadzu Group. meetings
Outside Audit &
Supervisory
Board Members He actively offers his opinions at Board of Directors meetings and other
situations based on his extensive expert knowledge and experience as a lawyer. • Attended 13 of 13 Board
He was appointed in anticipation of his role in helping to improve the governance of Directors meetings
Independent Tsuyoshi
Retained of the Shimadzu Group by gathering information from internal control • Attended 17 of 17 Audit &
director Nishimoto
departments and other sources, and providing opinions regarding the Supervisory Board
preparedness of internal control systems at Shimadzu subsidiaries, both within meetings
and outside Japan.

Activities of Outside Directors and Outside Audit &

Supervisory Board Members

Director Hanai Director Wada Director Nakanishi Audit & Supervisory Board Member Nishimoto

As the former President of Kyowa Director Wada has been asked to In July 2021, Director Nakanishi In August 2021, Audit & Supervisory
Kirin Co., Ltd., Director Hanai is a teach workshops about visited Shimadzu showrooms Board member Nishimoto taught a
leading expert in antibody drug empowering women in the (Science Plaza and Medical seminar on compliance for corporate
research. In August 2021, Director workplace. Center), the Healthcare R&D officers, Audit & Supervisory Board
Hanai visited the SHIMADZU In December 2021, she taught Center, and the Shimadzu members, Fellows, and General
Future Collaboratory, which is a a Women Supporting Women Foundation Memorial Hall in order Manager-level Shimadzu personnel.
new research building at the Workshop conducted to increase to develop a deeper understanding He gave a presentation on the topic
Technology Research Laboratory, the productivity and effectiveness of Shimadzu businesses. Director “What Scandals Teach us about
where he exchanged views with of female managers. In January Nakanishi indicated his impression Fostering Awareness for Corporate
researchers about antibody drugs, 2022, she taught a workshop by saying“Seeing actual Shimadzu Compliance”using actual case
supporting drug discovery, and entitled“Talk Session with products and where they are made studies of scandals that occurred at
other research topics that Director Wada (W-Lab),”offered and hearing explanations from other companies, such as fraudulent
Shimadzu is currently developing. to help young female employees those involved provided a accounting practices, data
In October, Director Hanai learn about leadership and better wonderful opportunity to obtain a tampering, and forgery.
participated in a discussion with understand the respective roles more realistic understanding of
personnel from departments deeply within departments. Shimadzu businesses.”
involved in the pharmaceutical Many participants commented that
market, where he exchanged views it provided a great opportunity to
about methods for approaching think about leadership in depth.
the market.

Director Hanai Offering Advice (shown in Women Supporting Women Workshop Director Nakanishi Touring a Showroom Audit & Supervisory Board Member
the foreground) Participants (Director Wada is in the front (shown on the left) Nishimoto Giving the Presentation
row, third from the right)

Shimadzu Integrated Report 2022 92

 Governance Report (G) For more details, refer to the website.
https://www.shimadzu.com/ir/governance/code.html
Corporate Governance Basic Policy, Complying with Corporate Governance Codes, Cross-
Shareholdings, Appointment and Compensation Committee, Director and
Audit & Supervisory Board Member Compensation System,
and Evaluating the Effectiveness of the Board of Directors

Evaluating the Effectiveness of the Board of Directors

Shimadzu analyzes and evaluates the effectiveness of the In this year's survey, we reviewed the contents of the
Board of Directors for the purpose of making continuous questionnaire. Specifically, the report consists of three parts:
organizational or operational improvements and ensures it (1) confirmation of changes over time, (2) confirmation of
functions properly. issues to be addressed last year, and (3) future reviews.
The seventh such evaluation involved conducting a survey As for (3) future reviews, a survey was conducted in short-
in FY 2021 about the Board of Directors' effectiveness. answer questions so as to lead to specific initiatives.
An analysis and evaluation of the survey results were then A summary of this is disclosed in the Corporate
deliberated at a Board of Directors meeting. Governance Report.

Summary
The evaluation results were generally positive. In particular, the atmosphere and environment that support lively
discussions are highly regarded, and we believe this is a strength of our company’ s Board of Directors. On the other
hand, it was pointed out that the reporting and discussion of risk management based on a global risk assessment
system and the frank exchange of opinions between the accounting auditor and outside officers were insufficient.
This fiscal year, we will focus on improving these issues.

Results from Evaluating the Effectiveness of the Board of Directors

Criteria for Evaluating
FY 2021 (Applicable Year: FY 2020) FY 2022 (Applicable Year: FY 2021)
Effectiveness
Evaluation results for the current size and composition
The evaluation was positive regarding the current size and
were positively high, similar to the previous year. In the
Composition of Board of composition of the board. To strengthen the monitoring
future, we intend to consider increasing the number of
Directors Meetings function of the Board of Directors, a skill matrix will continue to
outside directors and increase diversity, while also
be used for discussions about the board composition.
ensuring an appropriate size.

The atmosphere and environment were considered conducive

Evaluation results were positive, such as indicating an to all board members freely expressing their views and the
appropriate frequency and length of meetings and an number of issues raised for discussion and the time allocated
Operation of Board of atmosphere and environment that allowed all members to for each issue were considered roughly appropriate. On the
Directors Meetings freely express their views. The active use of remote other hand, because there was room for improvement in the
meetings during the COVID-19 pandemic also received presentation materials provided, a document with a brief
high marks. summary of key points, a document explaining specialized
terminology, and so on will be prepared and provided.

Results were positive in terms of evaluating whether

adequate time was provided for assessing and discussing Despite improvements in the frequency and timing of reporting
the progress on issues and measures specified in the risk management issues, global risk assessment and other
Roles and Responsibility of medium-term management plan and other matters. On systems on which reporting and discussions are based are still
the Board of Directors the other hand, we intend to increase the opportunities for considered inadequate. In addition, the business portfolio,
specifying and discussing topics in a manner that leads to group governance, and human resource development will also
a more dynamic deployment of business activities with be addressed in the future as important topics.
personnel executing the measures taking appropriate risk.

Evaluation results indicated that the content and reporting

Medium- and long-term strategies, such as business
methods of presentation materials submitted for meetings
Status of Measures to portfolio strategies, and important business strategies were
were improved to promote deeper discussions, which had
Address Issues Identified in repeatedly discussed.
been an issue in the past. On the other hand, we intend
the Effectiveness Evaluation This fiscal year, in addition to reviewing medium- and long-
to implement measures to ensure there is adequate time
Results Last Year term strategies, the next medium-term management plan will
for considering the business portfolio, important business
also be discussed.
strategies, and so on.

All directors adequately understood the basic philosophy

All the directors have a good understanding of Shimadzu’ s
of the company, endeavored to achieve that philosophy,
Self-Assessment by basic philosophy and are committed to realizing that
and had spent adequate time and effort fulfilling their roles
Directors philosophy. The diverse backgrounds have contributed to
and responsibilities as directors, which is a better result
active discussions and are considered a positive factor.
than in the previous year.

The cooperation between outside directors and Audit &

Evaluation results indicated improvement since last year
Supervisory Board members was considered particularly good.
Support for and Cooperation regarding earlier briefing of outside directors about the
However, due to insufficient opportunities for outside directors
with Directors and Audit & agenda before Board of Directors meetings and ensuring
to candidly exchange views with financial statement auditors,
Supervisory Board Members information is exchanged and shared appropriately among
improvements to their cooperation will be implemented this
outside directors and Audit & Supervisory Board members.
fiscal year.

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 Message from Contributing to Society through Business Overview Financial and Sustainability Financial and 　
the President Science and Technology and Results Non-Financial Highlights Management Corporate Information

Appointment and Compensation Committee

Shimadzu established the Appointment and Compensation Survey questions primarily involve (1) committee member
Committee as an optional advisory body to the Board of composition, (2) committee operation, and (3) committee
Directors for the purpose of strengthening the independence, member roles and responsibilities. Evaluation results have
objectivity, and accountability of the Board of Directors. been generally positive.
Through the activities indicated below, the committee
strengthens governance by increasing the transparency and Composition of Appointment and
objectivity of processes involved in appointing and compensating Compensation Committee
directors and Audit & Supervisory Board members.
The Appointment and Compensation Committee is composed of
The committee met six times during FY 2021.
Representative Directors and Outside Directors, with a majority
Main Activities of the Appointment and Compensation of the members Outside Directors. In principle, the chairperson
Committee during the Last Fiscal Year is an independent outside director, thereby enhancing
• Deliberated candidates for the next president and independence regarding appointment and compensation.
CEO
Appointment • Deliberated candidates for outside directors and
Activities Audit & Supervisory Board members Name Appointment and Compensation Committee
• Deliberated transfers of directors and Audit & Outside Directors 4
Supervisory Board members Internal Directors 2
• Deliberated and recommended revisions for policies Members 6
related to compensation and other amounts and
their calculation methods due to legal changes
Compensation • Deliberated fixed compensation and short-term
Activities performance-linked compensation amounts for the
Members of the Appointment and
current fiscal year Compensation Committee
• Deliberated issues regarding director and Audit & Chairman: Hiroko Wada (Outside Director)
Supervisory Board member compensation Members: Teruhisa Ueda
(Representative Director, Chairman of the Board)
Evaluating the Effectiveness of the Yasunori Yamamoto (President & CEO)

Appointment and Compensation Committee Nobuo Hanai (Outside Director)

Yoshiyuki Nakanishi (Outside Director)
In addition to evaluating the effectiveness of the Board of
Nami Hamada (Outside Director)
Directors, a survey about the effectiveness of the Appointment
and Compensation Committee has been conducted annually
since 2019, the year after the committee was established.

Criteria for Independence of Outside Directors and Audit &

Supervisory Board Members
If none of the following apply, Outside Directors and Outside (monetary or asset compensation equivalent to 10 million
Audit & Supervisory Board members (including candidates) yen or more, excluding the director compensation,
shall have independence from Shimadzu, with no risk of a received during the previous fiscal year)
conflict of interest with general shareholders. (4) Persons for which any of the conditions (1) to (3) applied
(1) Major supplier of Shimadzu (a company that received within the past year
payments from Shimadzu equivalent to 2% or more of their (5) Relatives within a second-degree kinship to a person indicated
annual consolidated sales revenue during the previous in 1. to 3. below (excluding those without significance).
fiscal year) or an executive officer of that company 1. A person indicated in (1) to (4)
(2) Major customer of Shimadzu (a company that paid 2. An executive officer of a Shimadzu subsidiary (including
Shimadzu an equivalent of 2% or more of Shimadzu’
s directors who are not executive officers when Outside
annual consolidated sales revenue during the previous Audit & Supervisory Board members are assigned as
fiscal year) or an executive officer of that company independent directors)
(3) Consultant, accounting expert, or legal expert (including 3. A person that served as an executive officer indicated
persons affiliated with a corporation, association, or other in 2. or as a Shimadzu executive officer within the last
organization that received applicable assets) who receives year (including directors who are not executive officers
any large monetary or asset compensation from Shimadzu when Outside Audit & Supervisory Board members are
other than the designated director compensation assigned as independent directors)

Shimadzu Integrated Report 2022 94

 Governance Report (G) For more details, refer to the website.
https://www.shimadzu.com/ir/governance/code.html
Corporate Governance Basic Policy/Compliance with Corporate Governance Codes/Cross-
Shareholdings/Appointment and Compensation Committee/Director
Compensation System/Evaluating the Effectiveness of the
Board of Directors

Policy on Method for Deciding Director and Audit & Supervisory Board
Member Compensation
Shimadzu has specified regulations for Director and Audit & Compensation amounts for Directors and executive
Supervisory Board member compensation that govern officers with specific duties are decided by Appointment
the procedure for deciding compensation amounts, and Compensation Committee members appointed by the
the compensation system, and other related issues regarding Board of Directors within the range decided at the Annual
compensating directors, Audit & Supervisory Board members, Shareholders’Meeting. The results are then reported to
and executive officers with specific duties. Furthermore, the the Board of Directors. Compensation amounts for Audit &
Policy on Method for Deciding Director and Audit & Supervisory Supervisory Board members are decided through discussion
Board Member Compensation is decided by deliberation of the with the Audit & Supervisory Board members.
Board of Directors based on the recommendations of the
Appointment and Compensation Committee. That policy was
reviewed in March 2021.

Director and Audit & Supervisory Board Member Compensation System

Compensation for directors (excluding outside directors) and Compensation levels are decided based on the expected
executive officers with specific duties (collectively referred to as roles and duties of the Outside Director.
“Director or Officer”below) comprises a fixed base Compensation for Audit & Supervisory Board members
compensation amount plus a variable amount linked to only includes a fixed compensation amount decided based
variations in short-term performance and stock compensation on their expected roles and duties.
linked to variations in medium-/long-term performance, while
also taking into consideration the management duties of the
Director or Officer with respect to expanding our business
results during each fiscal year and increasing medium- and
long-term corporate value.

Audit &
Directors Outside
Classification Supervisory Remarks
(Internal) Directors
Board Members
From the perspective of deciding compensation based on objective information, while also providing a level that is sufficient
to enable recruiting talented human resources, compensation is decided based on the candidate’ s current position and
Fixed
○ ○ ○ intended role, using the compensation offered by similar companies (group of benchmark companies of a similar size and in
Compensation
a similar type of business), to be determined by a survey performed by an outside specialist company, as an important
reference level.
Short-Term
Compensation is decided based on overall consideration of the year-on-year growth rate of consolidated net sales and
Performance-
○ ー ー operating income, an evaluation of the performance of the specific department the executive officer with specific duties is in
Linked
charge of, and a personal evaluation.
Compensation
For directors, for example, the number of shares provided for each position is decided in the final year of the medium-term
Medium-/
management plan based on the degree to which specified performance targets were achieved. Compensation can vary
Long-Term
within the 50 to 200% range, given the target achievement degree is determined based on target values for consolidated
Performance- ○ ー ー
net sales and operating income as performance indicators. If a director or other employee commits a serious violation of
Linked Stock
their job duties or company regulations, they will forfeit their right to benefit from scheduled issues of stock and a system is
Compensation
established to charge a monetary amount equivalent to the stock value provided.

Director and Audit & Supervisory Board Member Compensation Status (FY 2021)
Number of Applicable Compensation Linked to Performance (million yen)
Fixed
Directors and Audit & Compensation Linked Stock Compensation Linked to Total
Classification Compensation
Supervisory Board to Short-Term Medium-/Long-Term Performance2 (million yen)
(million yen)
Members Performance Recorded as Expense
Directors (Internal) 5 231 197 29 458
Audit & Supervisory Board Members (Internal) 2 53 ー ー 53
Outside Directors 4 36 ー ー 36
Outside Corporate Auditors 2 20 ー ー 20
Total 13 341 197 29 568
Note:
1. The above includes compensation paid to one outside director who retired on June 25, 2021.
2. The system for stock and non-monetary compensation linked to medium-/long-term performance is intended to provide a quantity of stock every three years based on the extent to
which the performance targets for the final year of the medium-term management plan were achieved. However, implementing the system requires recording that stock compensation
as an expense each year. The compensation value indicated above is based on the recorded expense calculated by multiplying the number of points attributable to directors (excluding
outside directors) for the given fiscal year by the market stock price, assuming a trust purchased Shimadzu stock. However, actual stock compensation is determined after the medium-
term management plan has ended.
3. Salaries of employees who double as officers are not included because there are no applicable matters.

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the President Science and Technology and Results Non-Financial Highlights Management Corporate Information

Executive Sessions
To provide an opportunity to periodically meet and freely Recent meetings for exchanging views are indicated below.
discuss issues, exchange views, share circumstances, and so
Status of Recent Meetings for Exchanging Views
on, executive sessions are held between Outside Directors
• Shared issues of Shimadzu with newly appointed
and Outside Audit & Supervisory Board members, or between outside directors
Outside Directors and Audit & Supervisory Board members Meetings between Outside • Exchanged views about developing human
Directors and Outside resources (management human resources, Finance
after Board of Directors meetings have ended. Audit & Supervisory Board and Accounting Department human resources,
Members technical human resources, training, and promoting
For the purpose of the sessions to provide information to initiatives for women, diversity, and inclusion)
• Exchanged views about Group governance
executive management and the Board of Directors, Outside
Meetings between Outside • Exchanged views about Shimadzu Group
Directors and Outside Audit & Supervisory Board members Directors and Audit & manufacturing capabilities
Supervisory Board • Exchanged views including financial statement
express their respective views on Shimadzu issues and Members auditors
exchange views with an accountant about improving
internal controls.

Executive Session of Outside Directors and Outside Audit & Supervisory

Board Members Video Conference for Outside Directors to Exchange Views with Audit & Supervisory
Board Members and Financial Statement Auditors

Cross-Shareholdings

1．Policy on Cross-Shareholdings consolidated total assets and 3.2% of consolidated net

assets. The number and value of stocks included on
Shimadzu holds stocks that Shimadzu judges will result in
the consolidated balance sheet are indicated below.
increasing medium- and long-term corporate value, from a
management strategy perspective. Each year, the Board of Number of Stocks (Stock types)

Directors verifies the appropriateness of holdings, by confirming FY 2019 FY 2020 FY 2021

whether the overall scale of cross-shareholdings is appropriate Unlisted Stocks 30 30 30

Stocks Not Unlisted 36 30 24
and then confirming whether the holdings of individual stocks
are appropriate for the given objectives for holding the
respective stocks and whether the benefits and risks from Value of Stocks Included on Balance Sheet (Million yen)

holding the stocks are commensurate with the corresponding FY 2019 FY 2020 FY 2021

cost of capital and other factors. Holdings of stocks not Unlisted Stocks 525 519 612
Stocks Not Unlisted 10,418 11,907 11,405
consistent with the cross-shareholding policy will be reduced.
During the Board of Directors meetings held during FY 2021,
the board confirmed the qualitative significance of holding each 3．Shareholder Voting Criteria
stock and quantitative aspects of each stock, such as a Shimadzu exercises voting rights for all cross-shareholdings
comparison of total shareholder return versus cost of capital. subject to a vote if it is judged that doing so would increase
That verification process resulted in selling stocks in the year shareholder value. To ensure we exercise our voting rights
ended March 2022 that were judged as not necessarily appropriately, we check the content of each proposal being
providing sufficient significance for holding the shares. Also, voted on based on decision criteria specified for each
some stocks were donated to the school Shimadzu Gakuen. proposal, such as appropriation of retained earnings,
appointment of directors or Audit & Supervisory Board
2．Stocks Held by Shimadzu for Reasons members, or establishment of measures to defend against a
other than Net Investment Purposes takeover. For issues involving particularly serious concerns,
As of March 31, 2022, the number of stocks held for such as a social scandal, we consider our vote very carefully.
purposes other than net investment was 2.1% of

Shimadzu Integrated Report 2022 96

 Governance Report (G)
Corporate Governance

Internal Control Systems

Basic Policy has established the“Regulation for Establishing Internal Control

over Financial Reporting”to specify a basic framework for
In the Shimadzu Group, internal controls are considered
internal controls and achieve business objectives by improving
important organizational management systems for achieving
the efficacy and effectiveness of business practices, ensuring
company management strategies, business goals, and other
the reliability of financial reports, promoting compliance with
objectives. Internal controls function as an integrated part of
laws, regulations, and other requirements for business activities,
risk management, along with corporate ethics and compliance,
and protecting assets.
and their effectiveness is verified whenever appropriate. Based
In recognition of the importance of creating and
on that understanding, internal control systems have been
disclosing appropriate financial reports, establishing and
established to ensure the duties of executives and other
implementing internal controls are considered a company-
employees are executed in accordance with applicable laws/
wide challenge. Furthermore, we are constantly evaluating
regulations and our Articles of Incorporation and to ensure
internal controls to maintain and improve their effectiveness
business processes within the Shimadzu Group are performed
and implement improvements (remedial measures) to resolve
appropriately and efficiently. We will continue to strengthen
any deficiencies identified.
internal control systems by constantly identifying changes in
In terms of the scope of controls, we focus on the most
the business environment and making improvements without
important companies and business processes to improve
concern for previous ways of thinking or methods.
effectiveness in actual practice.
Meanwhile, to address processes not currently targeted, a
Internal Control Systems checklist prepared by the Head Office is used by each Group
The Shimadzu Group has communicated the President’ s company to check their processes and internal controls
message about prioritizing compliance above all else to all themselves and prevent problems from occurring by assessing
employees. To ensure business processes are executed and mitigating risks.
appropriately and efficiently, we have established systems for
ensuring compliance with all applicable regulations governing Cooperation between Audit & Supervisory
business operations, clarified job authority, and established Board Members and Financial Statement
systems for quickly and accurately conveying Shimadzu Group Auditors
information in order to increase management transparency. If a
The Internal Audit Department provides recommendations or
violation occurs, a description of the violation, disciplinary
advice from an independent perspective based on internal
actions, and other information are quickly shared throughout
audits for the purpose of achieving management targets and
the Shimadzu Group in an effort to prevent a recurrence of
promoting the growth and development of company businesses.
similar violations. Furthermore, while strictly protecting personal
Audits are conducted efficiently by cooperating with Audit &
and confidential information, relevant information is disclosed
Supervisory Board and accountant auditors to exchange
outside Shimadzu whenever appropriate, either via public
information with Audit & Supervisory Board members and
relations, investor relations, the website, or other means.
accountants whenever appropriate.
The following systems have been established at the Head
Office to provide support for understanding and managing
Conveying Information to the Board of
management circumstances at Shimadzu Group companies.
Directors (Dual Lines of Internal Audit Reporting)
(1) Each divisional department (first line) establishes appropriate consolidated The Shimadzu Group Internal Audit Department submits an
management capabilities for establishing management policies, internal audit plan to the President for approval and then reports
managing budgets, managing performance, establishing internal controls,
the results of the audit based on that plan, any issues identified,
and so on, at each business segment, including subsidiaries, and
ensures the overall Shimadzu Group and respective business groups are the corrective measures’implementation status, and other
operated efficiently with appropriate business processes. information to the President. Meanwhile, whereas that
(2) Functional departments (second line) are responsible for cross- information was previously reported to the Board of Directors
organizationally monitoring, evaluating, and providing guidance to
as a document, beginning in FY 2021, the General Manager of
the Shimadzu Group companies for specialized fields, such as sales/
marketing, R&D, manufacturing, and control. the Internal Audit Department now reports that information
(3) The Internal Audit Department (third line), which is directly supervised by the directly at the Board of Directors meetings, provides
President, ensures the effectiveness of internal controls by actively employing information whenever appropriate, and receives instructions
the latest auditing technologies* to conduct internal audits efficiently. and advice from outside directors and outside Audit &
* Numerical data, such as from core computer systems, is used to detect Supervisory Board members.
inappropriate processes, audit corresponding business operations, and implement
any improvements necessary.
Report
Board of Directors

Establishing Internal Controls for Financial Internal Instructions and advice

Reporting Audit Dept. Report

President
Based on implementation standards specified by Direct
the Japanese Financial Services Agency, the Shimadzu Group

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 Message from Contributing to Society through Business Overview Financial and Sustainability Financial and 　
the President Science and Technology and Results Non-Financial Highlights Management Corporate Information

Strengthening Compliance and Building a

Risk Management System
The following web page includes information about the topics listed below.
https://www.shimadzu.com/ir/governance/social/compliance.html
Compliance Shimadzu Corporate Ethics/Compliance and Corporate Ethics

Basic Policy Preventing Bribery and Anti-Competitive

Practices
The Shimadzu Group is committed to obtaining applicable
permits and licenses and complying with applicable laws and The Shimadzu Group Sustainability Charter and corresponding
regulations, such as security trade controls, anti-bribery laws, policies for activities specify conducting activities in an open
and competition laws, established by governments in respective and fair manner and forbid offering bribes to public officials or
regions and countries for Shimadzu’ s various businesses offering inappropriate entertainment or gifts to suppliers or
deployed around the world. In addition to compliance with laws others in the private sector in order to prevent receiving or
and regulations, Shimadzu is also committed to behavior giving of bribes. We also forbid obtaining profit through
consistent with international norms. We have established a improper means, are committed to competing fairly, and
Corporate Code of Ethics that specifies guidelines for ethics that engaging only in fair transactions.
should be shared and complied with by directors and employees,
in accordance with Shimadzu’ s corporate philosophy, Security Trade Controls
management principle, and Shimadzu Group Sustainability
The Shimadzu Group has established a security trade control
Charter, and we practice a policy of prioritizing compliance above
policy and implements appropriate import/export controls from
all else.
a perspective of maintaining international peace and security.

Promoting Compliance
Export Control System
The Shimadzu Group has created a Corporate Ethics and Code
Internal export control regulations (compliance program,
of Conduct Handbook that summarizes the essential elements of
abbreviated“CP”) were established, with the President as the
the Corporate Code of Ethics in an easy-to-understand form and
chief officer responsible for export controls, to ensure the
prevents compliance problems through group training,
Security Trade Control Policy is implemented. Based on these
e-learning, and other teaching activities to teach and instill the
regulations, we conduct strict applicability reviews, transaction
contents of the handbook. We also ensure the implementation of
reviews, and so on, in compliance with the Japanese Foreign
corporate compliance within the Shimadzu Group by monitoring
Exchange and Foreign Trade Act and other applicable laws and
compliance with laws, regulations, and other requirements
regulations. Furthermore, the Export Controls Committee
whenever appropriate through the activities of the Export
conducts periodic audits to confirm exports are being controlled
Controls Committee and the Official Approval Committee, or
appropriately in accordance with the CP.
internal audits. We have also established a system for reporting
any problems, with contact points established within and outside
the company for consultation and notification regarding Export Controls Committee
compliance issues. Chief officer responsible for export controls
Export Controls Committee Chairperson
President
Provision of Corporate Ethics Consultation
and Notification Contact Points
Transaction final decision-maker
To prevent corporate ethics problems, or identify and address Director or deputy director in charge of risk management
them as early as possible, all Shimadzu Group employees
(including former employees), temporary personnel, and
Import and Export Control Department (Export Control Group)
contractor personnel working within Shimadzu are notified that
Shimadzu has established special contact points within and
outside the company for consultation and notification regarding Departments within the company
Group companies in Japan
corporate ethics issues. To provide a system that is (sales, R&D, procurement, etc.)
independent from normal executive management channels,
“External Hotlines”are provided as contact points outside Group companies outside Japan
Shimadzu, where personnel can notify or consult an outside
lawyer for investigation by an Audit & Supervisory Board
member. In addition to preparing measures for investigating,
Ensuring Transparency of Relationships with
remedying, and preventing the recurrence of reported or
Medical and Other Institutions
consulted issues, rules have also been established to protect To be a company worthy of the trust of society, we have
personnel that contact the contact points for consultation or increased the transparency of relationships with medical
notification, such as rules that prohibit treating them institutions and others whose cooperation is essential for
unfavorably. In FY 2021, there were 92 cases of the contact developing, manufacturing, importing, and selling medical
points being contacted for consultation or notification. systems by publishing a Guideline for Transparency of
Relationships with Medical and Other Institutions and disclosing
all funds provided to medical institutions or other relevant parties.

Shimadzu Integrated Report 2022 98

 Governance Report (G) The following web page includes information about the topics listed below.
https://www.shimadzu.com/ir/governance/social/compliance.html
Strengthening Compliance and Shimadzu Risk Management, Assessment Methods for Risk Management, and
Risk Management Activities
Building a Risk Management System

Risk Management

Basic Policies of Risk Management Risk Management Activities

Risk management is an indispensable presence necessary for Shimadzu Group risk management activities involve both
achieving business continuity and progress, while also fulfilling preventing risks before they occur and responding to risk events
the social responsibilities of the company. after they occur. The overall company, each department, and
Therefore, to increase the trust of society, Shimadzu each Group company use a PDCA cycle to manage and monitor
established a risk management system that encompasses risks based on periodic risk identification and assessment results.
corporate ethics and compliance, cultivated a corporate
culture that respects corporate ethics and compliance, and (1) Prevention Activities
has been engaged in activities for ensuring that business
The Shimadzu Group has currently identified“raising compliance
risks are properly managed.
levels”and“reducing risks related to business execution”as
important measures and is engaged in rebuilding corresponding
Risk Management System capabilities and verifying/inspecting the current status.
The Shimadzu Group has established a“Shimadzu Group Risk In FY 2021, ethics and corporate compliance status surveys
Management Regulation”that specifies systems, responsibilities were conducted at Shimadzu Corporation and Group
(job authority and responsibilities), and activities related to risk companies in Japan to identify current issues. In addition, risk
management. management promotion managers were assigned in each
Under the direction of the President, who is the chief officer department to enable first-line personnel to proactively reduce
responsible for executing business processes, a Risk risks and resolve risk events.
Management and Corporate Ethics Meeting convenes twice a In FY 2022, the risk management promotion officer will
year to deliberate, decide, and monitor important issues as the address the risks identified by each department and the
highest deliberative body for risk management. For decisions departments responsible for respective risks provide training
approved by the meeting, the director in charge of risk and create systems for voluntary learning in each department.
management coordinates the departments responsible for
risk management or special committees in charge of risk (2) Responding when a Serious Risk Appears
management issues across the entire Shimadzu Group by An emergency communication system has been established
providing the support and guidance necessary for to ensure an appropriate response in the case of a serious
respective departments and Group companies to voluntarily risk. Based on the general rule to communicate the first report
engage in activities. as soon as possible, if necessary a response task force
For Group companies outside Japan, the corresponding chaired by the President is established for implementing
regional corporate head offices in the United States, Germany, response measures.
China, and Singapore serve to manage activities, provide
training, provide support, and monitor issues related to risk
management at Group companies under their jurisdiction.

Risk Management and Ethics System

President
Director in charge of RM
Risk Management and
RM Task Force Corporate Ethics Meeting
(General Administration Dept.)

RM: Risk management

Divisions Coordinating Respective departments

Each department activities Various committees
responsible for risk
Group companies Lead/support

99 Shimadzu Integrated Report 2022

 Message from Contributing to Society through Business Overview Financial and Sustainability Financial and 　
the President Science and Technology and Results Non-Financial Highlights Management Corporate Information

The following web pages include information about the topics listed below.
https://www.shimadzu.com/ir/strategy/risk.html
Risks to Businesses, etc.

Risk Management and Ethics Systems at Group Companies outside Japan

Regional Corporate Head Office in Europe Regional Corporate Head Office in America

Group companies within the region Group companies within the region

Head Office

Regional Corporate Head Office in China Regional Corporate Head Office in Asia

Group companies within the region Group companies within the region

Responding to the COVID-19 Pandemic

To prevent the spread of infection, Shimadzu has prioritized (3) Indicating and Executing Infection Prevention
the safety of customers, the local community, business Measures for Visitors
partners, employees, and others, by continuing to implement We strive to relieve visitor concern by preparing standards for
responses in accordance with government instructions. responding to visitors, standardizing that response at all
The following describes one such example. locations within Japan, and clearly posting measures to show
that Shimadzu takes safety very seriously.
(1) Preparing and Executing Internal Guidelines and At sites where we manufacture infectious disease
Standards
countermeasure products, due to our strong awareness of our
Shimadzu has prepared and periodically updates guidelines responsibility as a supplier of such products, in addition to the
based on medical evidence and government policies for how to measures above, we also use Shimadzu products to regularly
respond in the event infections occur within the company and conduct PCR testing, monitor body temperature, and
standards for preventing further infection. There are six levels of implement other measures for ensuring business continuity.
standards for infection prevention measures. By specifying
specific basic actions, such as for business trips within or
outside Japan, teleworking, or conducting meetings, responses
can be implemented organizationally and more flexibly.

(2) Monitoring Employee Health Symptoms and

Responding Quickly if an Infection is Discovered

We ask employees to report health symptoms every day in order

to quickly identify and follow up on anyone who is not feeling
well. If someone does not feel well, an in-house occupational
health nurse will actively give instructions/guidance to manage Specimen Sampling Booth at the Clinic within Shimadzu

the person’
s mental and physical health and increase their (4) Implementation of occupational COVID-19 vaccination
awareness of preventing transmission of infection. If an
The COVID-19 vaccine is administered to employees of
employee infection is confirmed, clusters within the company are
the Shimadzu Group's offices in two prefectures and four
inhibited by quickly tracing all close contacts, isolating the
prefectures in the Kinki region, as well as to their family
employee at home, disinfecting surfaces, and so on.
members and others living together. Occupational vaccination
was conducted three times, and a total of 8,710 people were
provided with the opportunity for vaccination.

Shimadzu Integrated Report 2022 100

 Governance Report (G) The following web pages include information about the topics listed below.
https://www.shimadzu.com/sustainability/approach/social/human_
Strengthening Compliance and rights.html
Basic Policies, Principles, and Measures
Building a Risk Management System
https://www.shimadzu.com/sites/shimadzu.com/files/about/
procurement/uk2021_e.pdf
Statement on the UK Modern Slavery Act
Respect for Human Rights

Measures for Respecting Human Rights for personnel working at contact points for reporting harassment.
We also periodically survey suppliers in and outside Japan to
The Shimadzu Group has included respecting the rights of
check for any human rights violations in their business practices.
individuals and not discriminating based on race, gender,
Based on those policies, harassment help desks are
language, nationality, religion, physical disability, beliefs, or
established at each Shimadzu Group company, where personnel
other reasons among the principles of conduct in Shimadzu’
s
can get advice about harassment, and various training is
Corporate Code of Ethics. Meanwhile, we established the
conducted to help prevent harassment.
Conduct Guidelines Related to Respecting the Human Rights
During the previous year, all employees, including at Group
and Diversity of Employees and have been promoting the
companies in Japan, were provided harassment prevention
creation of workplaces that respect the human rights of all
training by a lawyer or shown a communication training video in
employees and show mutual appreciation of diversity, such as
an effort to promote mutual respect for each person and create
differences in personality and individuality. Human rights are
workplaces where employees feel comfortable working.
also included as an important theme of the Shimadzu Group
Sustainability Charter, which specifies a basic policy of
Harassment Prevention Training Completion Status
complying with international norms, laws, and regulations, such (FY 2021)
as respecting the rights of individuals, eliminating child labor Anger
Assertiveness
and forced labor, and banning discrimination. Harassment Management
for Preventing
Prevention for Preventing
Sexual
A Corporate Ethics and Code of Conduct Handbook was Training Power
Harassment
Harassment
created, an internal education program based on e-learning has
Shimadzu Manager Level 100% 93.3%
91.7%
been provided, a harassment help desk is available, and so on, Corporation General 84.1% -
based on that policy. In addition, we implement measures to Directors/
98%
Currently
Group Management receiving training Currently
promote awareness about respecting human rights, such as Companies receiving training
General 85.1% -
distributing a booklet about respecting human rights to new Note: For more information about procurement, refer to
managers and conducting harassment training for managers and Supply Chain Management on p. 79.

Information Security The following web page includes information about the topics listed below.
https://www.shimadzu.com/sustainability/approach/social/information_security/index.html
Basic Policies, Principles, and Measures

Systems for Improving Information Security To prevent information leaks or interruptions to business
activities by cyber-attacks, the committee created an
The Shimadzu Group periodically conducts Information Security
Information Security Policy, implements malware
Committee meetings chaired by the director in charge of DX/IT
countermeasures, and diagnoses/remedies network and
strategy. The committee discusses the direction and content of
computer security vulnerabilities.
information security measures at Shimadzu Corporation and
Shimadzu Business Systems Corporation, a Shimadzu
Group companies and then shares and deploys the results.
Group company in charge of building information systems for
For example, the committee decides whether to introduce new
the Shimadzu Group, has obtained ISO 27001 information
information management methods or tools, such as by creating
security certification.
relevant regulations that incorporate human-, organization-, and
technology-based security countermeasures. To minimize the
damage from any accidents, we established a communication Promotion systems for information security
tree system for sharing information with subsidiaries in and Information Security Committee
outside Japan and specified a protocol for responding to Vice-Chair
accidents. Chair (General Manager of the
(director in charge of Business Systems Management
The committee distributes an information) Department and one other
person)
Information Security Guidebook to
Members
increase awareness about information Secretariat
(appointed by vice-chair)
security measures and provides ongoing Observers

security training via E-learning, such as

training for responding to suspicious or Task Force

fraudulent emails. Draft policies Respond to emergencies ・

・・

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the President Science and Technology and Results Non-Financial Highlights Management Corporate Information

Crisis management against natural disasters, etc.

Basic Policy (3) Safety Status Confirmation System
A system for each employee to report their safety status using
Our Group has formulated a Business Continuity Plan (BCP)
their mobile phone in the event of a large earthquake or other
that assumes the occurrence of large-scale disasters such as
major disaster was introduced at the Head Office and Group
earthquakes and pandemics of infectious diseases. Even in
companies in Japan, with training conducted periodically.
the event of a natural disaster, we will continue our business
Smooth confirmation of employee safety helps achieve a faster
and fulfill our responsibility to provide products to customers
and more appropriate initial response.
by ensuring the safety of human life, controlling damage, and
Also, it is used to manage employee health as a measure
carrying out early recovery.
against COVID-19.

(1) Emergency Response System

To coordinate business continuity activities in an emergency, a

head office task force will be established for coordinating
company-level activities and, below that task force, five divisional
task forces will be established within each division. As the head
of respective task forces, the President directs the business
continuity and recovery activities of the head office task force
and respective divisional general managers direct the activities of
the divisional task forces.

(2) Preparation of Business Recovery Plans

In the event of a large-scale disaster such as an earthquake,

a recovery plan has been prepared for each division.
A separate recovery plan is prepared for buildings, utilities,
production lines, procurement, service, and other functions,
to ensure a quick recovery of business operations.
[Implementation of training using KPI safety
confirmation system (Japan)]
Recovery Process Chart
Response rate during FY 2021 training
1. April 2021: 97.6%
2. October 2021: 97.5%
Target response of 96% or more: Achieved

Operation
Checklist Information List for
Critical Equipment

Shimadzu Integrated Report 2022 102

 Financial and Corporate Information

Key Financial and Non-Financial Data over

the Past 11 Years
Financial Data
FY 2011 FY 2012 FY 2013 FY 2014

Fiscal Year
Net sales 266,255 264,048 307,532 314,702
Gross profit 100,875 96,030 117,959 127,028
Selling, general and administrative expenses 81,509 83,913 93,940 99,838
R&D expenses 8,883 9,659 10,643 9,786
Operating income 19,365 12,116 24,018 27,189
Capital investment 8,911 9,147 16,163 13,571
Depreciation and amortization 7,969 7,909 8,050 7,951
Profit attributable to owners of parent 9,083 7,578 9,724 18,445

Cash Flows
Cash flows from operating activities 8,805 12,028 (5,870) 40,245
Cash flows from investing activities (7,899) (7,899) 390 (15,678)
Free cash flows (from operating and investing activities) 906 4,128 (5,480) 24,566
Cash flows from financing activities (4,878) (2,401) 15,363 (33,197)

Year-End Values
Total assets 290,840 300,259 340,715 339,832
Cash and cash equivalents 29,756 33,842 43,929 38,422
Outstanding interest-bearing debt 29,075 30,509 53,860 24,668
Shareholders’ capital 173,105 178,174 180,449 195,912

Per-Share Information
Profit 30.79 25.69 32.97 62.55
Net assets 546.97 587.53 616.50 711.38
Dividends 8.00 9.00 9.00 13.00
Payout ratio (%) 26.0 35.0 27.3 20.8

Key Financial Performance Indicators

Gross margin 37.9 36.4 38.4 40.4
Operating margin 7.3 4.6 7.8 8.6
ROE (Return on equity) 5.7 4.5 5.5 9.4
ROA (Return on assets) 3.2 2.6 3.0 5.4
Shareholders’ capital ratio 55.5 57.7 53.4 61.7
Price-earnings ratio (×) 24.3 26.1 27.8 21.4
Overseas sales ratio 40.8 43.0 46.5 49.8

Non-Financial Data
FY 2011 FY 2012 FY 2013 FY 2014

Number of employees 10,132 10,395 10,612 10,879

Number of employees outside Japan 3,608 3,842 3,913 4,059
Number of patents held 4,343 4,848 5,304 5,484
CO2 emissions (t-CO2) 39,213 42,390 44,472 46,473

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the President Science and Technology and Results Non-Financial Highlights Management Corporate Information

(million yen)）

FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

342,236 342,479 376,530 391,213 385,443 393,499 428,175

140,385 136,409 149,833 157,169 152,430 156,192 178,615
104,683 99,319 107,011 112,688 110,584 106,450 114,809
9,437 9,296 9,676 10,138 10,632 10,155 10,278
35,701 37,089 42,822 44,480 41,845 49,742 63,806
12,098 12,876 17,187 21,711 17,676 14,471 16,357
9,425 9,546 10,591 11,506 13,256 15,536 16,205
23,899 26,473 29,838 32,523 31,766 36,097 47,289

32,348 29,608 41,215 29,454 39,509 63,801 63,367

(13,101) (12,304) (11,072) (22,897) (16,062) (13,860) (6,044)
19,246 17,303 30,142 6,557 23,447 49,941 57,323
(11,689) (7,294) (7,902) (10,819) (26,185) (13,033) (15,658)

349,798 375,354 418,548 437,190 437,618 497,459 560,528

43,508 52,762 75,090 70,842 66,683 106,855 155,319
19,150 18,611 18,636 17,537 2,112 1,743 1,709
214,734 235,342 258,464 282,962 305,395 323,267 359,073
(yen)

81.05 89.79 101.26 110.41 107.84 122.52 160.49

745.13 818.56 908.76 977.35 1,027.87 1,138.67 1,293.60
18.00 20.00 24.00 28.00 30.00 34.00 48.00
22.2 22.3 23.7 25.4 27.8 27.8 29.9
(%)

41.0 39.8 39.8 40.2 39.5 39.7 41.7

10.4 10.8 11.4 11.4 10.9 12.6 14.9
11.1 11.5 11.7 11.7 10.8 11.3 13.2
6.9 7.3 7.5 7.6 7.3 7.7 8.9
62.8 64.3 64.0 65.9 69.2 67.4 68.0
21.8 19.7 29.5 29.0 26.4 32.7 26.4
50.9 48.6 50.2 50.4 49.0 50.8 53.0

FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

11,094 11,528 11,954 12,684 13,182 13,308 13,499

4,201 4,471 4,805 5,187 5,485 5,549 5,692
5,657 6,071 6,549 6,755 7,062 6,423 6,776
46,453 46,959 49,398 44,958 38,727 35,080 18,321

Shimadzu Integrated Report 2022 104

 Financial and Corporate Information

Financial Statements
Consolidated Balance Sheets
(million yen) (million yen)

FY 2020 FY 2021 FY 2020 FY 2021

Assets Liabilities
Current assets Current liabilities
Cash and time deposits 112,760 157,966 Trade notes and accounts payable 61,424 66,538
Trade notes and accounts receivable 117,857 121,931 Short-term loans 1,462 1,504
Merchandise and products 59,117 61,386 Lease obligations 3,568 3,458
Work in process 18,383 20,777 Accounts payable 12,960 13,760
Raw materials and supplies 20,150 24,484 Income taxes payable 7,645 10,944
Other 9,296 9,984 Contract liabilities 35,696 40,347
Allowance for doubtful receivables (2,119) (2,167) Allowance for employees’ bonuses 11,430 11,657
Total current assets 335,446 394,363 Allowance for directors’ bonuses 292 355
Noncurrent assets Provision for loss on order received 126 10
Property, plant and equipment Liability for stock benefits — 38
Buildings and structures, net 53,016 52,902 Other 9,490 10,126
Machinery, equipment and vehicles, net 6,366 7,261 Total current liabilities 144,096 158,743
Land 18,955 19,053 Long-term liabilities
Leased assets, net 2,275 1,910 Long-term debt 281 205
Construction in progress 1,703 992 Lease obligations 4,945 6,422
Other, net 20,075 22,310 Liability for directors’ retirement benefits 132 144
Total property, plant and equipment 102,392 104,430 Liability for retirement benefits 11,342 12,994
Intangible fixed assets 11,615 11,151 Liability for stock benefits 89 92
Investments and other assets Other 1,066 759
Investment securities 13,663 13,496 Total long-term liabilities 17,857 20,620
Long-term receivables 132 156 Total liabilities 161,954 179,363
Assets related to retirement benefits 19,175 20,665 Net assets
Deferred tax assets 11,498 12,606 Shareholders’ capital
Other 3,883 4,003 Common stock 26,648 26,648
Allowance for doubtful receivables (348) (345) Additional paid-in capital 34,910 34,910
Total investments and other assets 48,005 50,583 Retained earnings 262,966 298,758
Total noncurrent assets 162,013 166,164 Treasury stock (1,259) (1,244)
Total shareholders’ capital 323,267 359,073
Accumulated other
comprehensive income
Net unrealized gain on available-for-sale 6,579 6,471
securities
Foreign currency translation adjustments 118 10,093
Cumulative adjustments to retirement
Cumulative adjustments to 5,540 5,525
retirement benefits
Accumulated other 12,237 22,090
comprehensive income

Total net assets 335,504 381,164

Total assets 497,459 560,528 Total liabilities and net assets 497,459 560,528

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the President Science and Technology and Results Non-Financial Highlights Management Corporate Information

Consolidated Statements of Income Consolidated Statements of Cash Flows

(million yen) (million yen)

FY 2020 FY 2021 FY 2020 FY 2021

Net sales 393,499 428,175 Cash flows from operating activities
Cost of sales 237,306 249,559 Income before income taxes 49,817 65,947
Gross profit 156,192 178,615 Depreciation and amortization 15,536 16,205
Selling, general and Impairment loss 148 ̶
106,450 114,809
administrative expenses —
Loss on fire 549
Operating income 49,742 63,806
Increase (decrease) in allowance for doubtful
Other income 241 (135)
receivables
Interest income 214 287 Increase (decrease) in allowance
1,928 96
Dividend income 337 228 for employees’ bonuses
Insurance payments received 278 261 Increase (decrease) in allowance for directors’ bonuses 19 59
Subsidy received 853 1,058 Increase (decrease) in assets and liabilities
314 (134)
Foreign exhange gains — 1,139 for retirement benefits
Other 744 689 Interest and dividends income (552) (515)
Total other income 2,429 3,665 Interest expense 180 188
Other expenses Contribution 2,272 948
Interest expenses 180 188 Foreign exchange (gain) loss, net (18) (1,062)
Foreign exchange loss 211 ̶ Net (gain) loss on sale and valuation of investment
(277) (133)
Contribution 2,438 1,063 securities
Other 962 642 Net (gain) loss on transfer of investment securities (1,463) (812)
Total other expenses 3,793 1,894 Loss (gain) on liquidation of investment securities — (2)
Ordinary income 48,378 65,577 Net (gain) loss on sale and disposal of property,
153 30
plant and equipment
Extraordinary income
(Increase) decrease in trade receivables (5,444) (220)
Net gain on transfer of investment securities 1,463 812
(Increase) decrease in inventories 3,126 (5,252)
Gain on sale of property, plant and equipment 71 170
Increase (decrease) in trade payables (92) 2,255
Net gain on sale of investment securities 338 146
—
Increase (decrease) in contract liabilities 4,286 1,427
Gain on liquidation of investment securities 2
Total extraordinary income 1,874 1,133 Other, net 3,322 554
Extraordinary losses Subtotal 73,499 79,992
—
Interest and dividends received 554 517
Loss on fire 549
Loss on disposal of non-current assets 225 200 Interest paid (180) (188)
Loss on fire paid — (232)
Loss on write-down of investment securities 61 13
Impairment loss 148 ̶ Income taxes paid (10,071) (16,721)
Total extraordinary losses 435 763 Net cash provided by operating activities 63,801 63,367
Income before income taxes 49,817 65,947 Cash flows from investing activities
Income taxes 13,417 19,438 Purchase of property, plant and equipment (13,312) (10,131)
Income tax adjustments 302 (780) Proceeds from sale of property, plant and equipment 346 555
Total income taxes and income Purchase of investment securities (34) (347)
13,719 18,657
tax adjustments Proceeds from sale of investment securities 548 302
Profit 36,097 47,289 Proceeds from liquidation of investment securities — 22
Profit attributable to owners of parent 36,097 47,289 Increase in long-term receivables (15) (50)
Decrease in long-term receivables 39 40
Other, net (1,432) 3,563
Net cash provided by (used in) investing activities (13,860) (6,044)
Consolidated Statements of Cash flows from financing activities
Comprehensive Income Repayment of short-term loans (430) ̶
(million yen) Borrowing of long-term debt 280 ̶
Repayment of long-term debt (229) (34)
FY 2020 FY 2021
Proceeds from issuance of commercial papers 10,000 ̶
Profit 36,097 47,289
Redemption of commercial papers (10,000) ̶
Other comprehensive income
Cash dividends paid (8,840) (11,490)
Unrealized gain/loss on available-for-sale
1,820 (107) Payment of lease obligations (3,973) (4,148)
securities
Foreign currency translation adjustments 5,976 9,975 (Increase) decrease in treasury stock 159 14
Retirement benefit adjustments 7,087 (14) Net cash provided by (used in) financing activities (13,033) (15,658)
Total other comprehensive income 14,884 9,853 Foreign currency translation adjustments on cash and
3,068 6,799
Comprehensive income 50,982 57,142 cash equivalents
Net increase (decrease) in cash and cash equivalents 39,976 48,463
(Breakdown)
Cash and cash equivalents, beginning of period 66,683 106,855
Comprehensive income attributable to owners
50,982 57,142 Increase in cash and cash equivalents resulting from
of parent 196 ̶
Comprehensive income attributable to merger with unconsolidated subsidiaries
— ̶
non-controlling interests Cash and cash equivalents, end of period 106,855 155,319

Shimadzu Integrated Report 2022 106

 Financial and Corporate Information

Corporate Profile
The following web page includes information about the topics
listed below.
https://www.shimadzu.com/about/profile.html
Corporate Profile

Corporate Outline (as of March 31, 2022) Major Business Offices

Name Shimadzu Corporation Head Office 1 Nishinokyo Kuwabara-cho, Nakagyo-ku, Kyoto

Founded March 1875 Offices Tokyo and Kansai (Osaka)

Formation of September 1917 Branches Sapporo, Tohoku (Sendai), Tsukuba, Kitakanto (Saitama
Limited Company City), Yokohama, Shizuoka, Nagoya, Kyoto, Kobe,
Hiroshima, Shikoku (Takamatsu City), and Kyushu (Fukuoka)
Address of Head 1 Nishinokyo Kuwabara-cho, Nakagyo-ku, Kyoto
Office 604-8511, Japan Plants Sanjo and Murasakino (Kyoto City), Atsugi (Atsugi City),
Phone: +81-75-823-1111 Hadano (Hadano City), and Seta (Otsu City)

Capital 26,648,899,574 yen Research Technology Research Laboratory (Seika-cho, Soraku-gun,

Laboratories Kyoto), Koichi Tanaka Mass Spectrometry Research
Number of 3,491 (non-consolidated) 13,499 (consolidated) Laboratory (Kyoto)
Employees
Number of 23 (in Japan) 53 (outside Japan)
Consolidated
Subsidiaries

Stock Information
The following web page includes information about the topics
listed below.
https://www.shimadzu.com/ir/stock/
Stock Information

Status of Stocks Major Shareholders (10 Largest)

Total Number of Common Stock Authorized 800,000,000 Number of Shares Owned Shareholding Ratio
Shareholder Name
(Thousands of Shares) (%)
Total Number of Common Stock Issued 296,070,227
The Master Trust Bank of
Number of Shareholders 38,941 46,609 15.81
Japan, Ltd. (Trust Account)
Stock Listing Tokyo Stock Exchange
Meiji Yasuda Life Insurance
20,742 7.04
TSE Code 7701 Company
Shareholder Registry Administrator Mitsubishi UFJ Trust and Custody Bank of Japan, Ltd.
Banking Corporation 13,007 4.41
(Trust account)
Accounting Auditor Deloitte Touche Tohmatsu LLC
STATE STREET BANK AND
12,440 4.22
TRUST COMPANY 505223

MUFG Bank, Ltd. 7,672 2.60

Ratio of Shares by Shareholder Type Taiyo Life Insurance Company 7,411 2.51
General corporations Securities companies
(Number of shareholders 318) (Number of shareholders 60) Tokio Marine & Nichido Fire
6,287 2.13
12,649 thousand shares (4.3%) 2,955 thousand shares (1.0%) Insurance Co., Ltd.
Other
Individuals
(Number of shareholders 3) The Bank of Kyoto, Ltd. 4,922 1.67
(Number of shareholders 37,719)
Total
1,255 thousand shares (0.4%)
34,241 thousand shares (11.6%) National Mutual Insurance
296,070 Federation of Agricultural
Cooperatives
4,384 1.49

thousand
shares Mitsubishi UFJ Trust and
4,205 1.43
Banking Corporation
Foreign investors Financial institutions, etc.
(Number of shareholders 750) (Number of shareholders 91) * The indicated shareholding ratio was calculated excluding treasury stock
102,349 thousand shares (34.6%) 142,616 thousand shares (48.2%) (1,252,762 shares).

Stock Price (Tokyo Stock Exchange)

(Yen) ー Shimadzu Corporation (Left axis) ー TOPIX (Right axis)  (TOPIX)
5,000 5,000
4,500 4,500
4,000 4,000
3,500 3,500
3,000 3,000
2,500 2,500
2,000 2,000
1,500 1,500
1,000 1,000
4 5 6 7 8 9 101112 1 2 3 4 5 6 7 8 9 101112 1 2 3 4 5 6 7 8 9 101112 1 2 3 4 5 6 7 8 9 101112 1 2 3 4 5 6 7 8 9 101112 1 2 3 (Month)
2017 2018 2019 2020 2021 2022 (Year)

107 Shimadzu Integrated Report 2022

 Message from Contributing to Society through Business Overview Financial and Sustainability Financial and 　
the President Science and Technology and Results Non-Financial Highlights Management Corporate Information

Information about Group Companies

Main Locations outside Japan The following web page includes information
about the topics listed below.
https://www.shimadzu.com/links/location.html

Manufacturing and R&D Organizations

Location

Application development
Beijing Shimadzu Medical Equipment Co., Ltd.
Manufacturing Medical Systems Manufacturing Plant in China
Research and development Shimadzu U.S.A. Manufacturing, Inc.
Innovation centers Analytical and Measuring Instruments
Manufacturing Plant in the United States

Shimadzu (SUZHOU) Instruments

Manufacturing Co., Ltd.
Analytical and Measuring Instruments
Manufacturing Plant in China

Shimadzu Manufacturing Asia Sdn. Bhd.

Analytical and Measuring Instruments
Kratos Analytical Ltd.
Manufacturing Plant in Malaysia
Analytical and Measuring
Instruments
Manufacturing Plant in the UK

Sales and Service Organizations

Main sales subsidiaries

Sales and services

Shimadzu Europa GmbH

Shimadzu Europa GmbH

Shimadzu Shimadzu
Shimadzu
Medical Systems USA Shimadzu
Scientific
Shimadzu (China) Co., Ltd. Medical Systems USA Scientific
Instruments, Inc.
Shimadzu (China) Co., Ltd.
Instruments, Inc.
Shimadzu Middle East & Africa Fze
Shimadzu
UAE Head Middle
Office East & Africa Fze
UAE Head Office

Shimadzu (Asia Pacific) Pte Ltd.

Shimadzu (Asia Pacific) Pte Ltd.

Shimadzu Scientific Instruments (Oceania) Pty. Ltd. Shimadzu do Brasil Comercio Ltda.
Shimadzu South Africa (Pty) Ltd. Shimadzu Medical
Shimadzu Scientific Instruments
Systems (Oceania)
(Oceania) Pty. Ltd.
Pty. Ltd. Shimadzu do Brasil Comercio Ltda.
Shimadzu South Africa (Pty) Ltd. Shimadzu Medical Systems (Oceania) Pty. Ltd.

Shimadzu Integrated Report 2022 108

Shimadzu Corporation
https://www.shimadzu.com/

P010-0607B