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SysmexSustainabilityReport2015Full Version

Contents123552Contents/Editorial PolicyCorporate PhilosophyMessage from the Chairman and CEOSysmex at a Glance7Highlight19Highlight2Involvement with Stakeholders53 Involvement with Customers54586263Ensuring Quality and SafetyAfter-Sales Support/Scientific ActivitiesStable SupplyEnhancing Customer Satisfactionand Third-Party Evaluations65 Contributing to Resolution ofHealthcare IssuesExpanding our Lineup of ImmunoassayAnalyzers and Reagents That Contributeto the Early Detection and Treatment ofInfectious Diseases, Cancer andOther Diseases67 Involvement with Shareholders69 Involvement with Business Partners73 Involvement with EmployeesOpening of i-Square, a Core InstrumentFactory Focused on DeliveringHigh-Quality Products in a Stable Manner74 Respecting Human Rights and Diversity77 Employee Evaluation, Treatment,and Human Resource Development83 Ensuring a Work-Life Balance87 Respecting Workers’ Rights88 Considering Safety and Health11Highlight313Employee Volunteers Conduct Fund-RaisingCampaign to Help Fight Cancer354250949810317 China18 Asia Pacific104CSR ManagementMid-Term CSR Plan113Results of Dialogue with Stakeholders117119122Summary of CSR DataExternal EvaluationCorporate GovernanceComplianceRisk Management12413613 7Policy on Corporate CitizenshipActivities and PhilanthropyActivities to Promote a Healthy SocietyContributing to Local CommunitiesPromoting Employees’ SocialContribution ActivitiesEnvironmental Conservation Activities105106111* Europe, the Middle East and AfricaSysmex’s CSR Activities2022242630Corporate Citizenship Activities93Global CSR Activity Highlights13 Japan15 Americas16 EMEA*1992Environmental PolicyEnvironmental ManagementEnvironmentally Conscious Productsand ServicesEnvironmental Consciousness atBusiness OfficesOther Environmental ConsiderationsGreen ProcurementEnvironmental DataGuideline Comparative TableIndependent OpinionCorporate InformationEditorial PolicyOrganizations coveredSysmex publishes the annual “Sysmex Sustainability Report”in the hopes of communicating its approaches and activitiesconcerning corporate social responsibility (CSR) to stakeholdersand facilitating dialog with them. This report is available as a fullversion and in digest form, as well as on the Company’s website.Sysmex Group (Sysmex Corporation and its subsidiaries both in Japan andabroad). In this report, “Sysmex” refers to the Sysmex Group as a whole.“Sysmex Corporation” refers to the Company on a stand-alone basis.Period coveredInformational content of each mediaconducted outside this period are also included. Comprehensive informationProvides exhaustive coverage of the Company’s CSR initiativesDate of publication August 2015 (Adding pages on December 2015 [P. 137-138])Excerpts of key information onlyContains excerpted content the Company wishes particularly tocommunicate to stakeholdersGuidelines referencedInquiries about this report The Global Reporting Initiative (GRI)'s Sustainability ReportingCSR Promotion Department, Sysmex Corporation The Japanese Ministry of the Environment's Environmental Reporting1

Corporate PhilosophyCore BehaviorsTo our CustomersWe deliver reassurance to our customers, through unmatched quality, advanced technologies, superior support,and actions that consistently reflect the viewpoint of our customers. We constantly look out for our customers’true needs, and seek to generate new solutions to satisfy those needs.To our EmployeesWe honor diversity, respect the individuality of each employee, and provide them with a workplace wherethey can realize their full potential. We value the spirit of independence and challenge, provide employeeswith opportunities for self-fulfillment and growth, and reward them for their accomplishments.To our Business PartnersWe deliver commitment to our client companies through broad-ranging partnerships. We strive to be a companythat can grow in step with our trade partners, through respect and mutual trust.To our ShareholdersOur shareholders can rest assured that we will continue to improve the soundness and transparency of ourmanagement policies, while promoting information disclosure and close communications. We commit ourselvesto a consistent yet innovative style of management, in order to achieve sustainable growth and increasedshareholder value.To SocietyWe carry out our business in strict compliance with laws and regulations, as well as in adherence to high ethicalstandards. As a responsible member of society, we play an active role in resolving environmental issues andother problems that impact our society today.2

Message from the Chairman and CEOWe address the shared desire of all people to remain healthyby providing products and services backed by leading-edgetechnologies and building trust and confidence.Contributing to the Advancement of Healthcarethrough Testingemerging markets, with these products we expect to provideadvanced testing in numerous regions and circumstances.In line with our mission of “shaping the advancement ofhealthcare,” which is defined in the “Sysmex Way,” thecorporate philosophy for the Sysmex Group, Sysmex worksto contribute to the development of healthcare and thehealthy lives of people. Since our founding in 1968, we havecreated a wide spectrum of products and services in thein-vitro diagnostics field based on advanced technologies,and the Group’s products are used in more than 190 countriesaround the world.In recent years, the environment surrounding thehealthcare business has changed dramatically. In advancedcountries, new needs are emerging as populations age andattention focuses on individually optimized healthcare(personalized medicine). Meanwhile, emerging markets—including China and countries in Southeast Asia and Centraland South America—are working to expand their healthcareinfrastructures and offer more sophisticated healthcare inline with their economic development.In this environment, testing is playing an increasinglyimportant role in illness prevention, early detection and thedetermination of treatment methods. We aim to swiftlyaddress these changes in the environment and respond topeople’s desire to remain healthy by meeting increasinglydiverse and advanced testing needs.In fiscal 2014, we launched the HISCL-800, a new productin the HISCL-Series of automated immunoassay analyzersthat aids in the diagnosis of infectious diseases, cancers, heartdiseases and autoimmune diseases and in monitoring theircourses of treatment. This product inherits such seriescharacteristics as minute samples, a high degree of sensitivityand fast measurement, and is compact, being approximately60% the width of existing models. We also introduced theXN-L-Series, a compact automated hematology analyzer.Aimed primarily to meet demand at small and medium-sizedfacilities in advanced markets and expected growth inBuilding Trust and Confidence amongStakeholdersIn keeping with its corporate philosophy, Sysmex prioritizesthe building of trust and confidence among its stakeholders.In fiscal 2014, we responded to growing global demandfor testing by reorganizing our instrument manufacturingstructure, creating a system to ensure the stable delivery ofproducts of even higher quality. We opened the doors ofi-Square, a new factory in the city of Kakogawa, HyogoPrefecture, and expanded the factories at two Groupcompanies in Japan. These moves will approximately tripleour future supply capacity at our four factories, includingKakogawa Factory. We also set up a logistics center withini-Square to directly link our manufacturing and distributionfunctions. At the same time, we revised our product packagingmaterials and promoted such reforms as increasing loadingratios. In addition to making logistics more efficient, thesemoves are helping to reduce our CO2 footprint. Overseas,we augmented production capacities at our reagentfactories in Singapore and Germany. As well as ensuringhigh levels of quality and production efficiency, we stroveto make these factories even more comfortable places foremployees to work.Besides its business-related initiatives, Sysmex alsoundertook a variety of social contribution activities. Forexample, because as a healthcare company we believe incontributing to a healthy society through sports, we havesupported the Kobe Marathon since its inception. We werea special sponsor of the fourth Kobe Marathon, which washeld in November 2014, and our volunteers supported eventoperations in such ways as providing water to runners.Overseas, we conduct a host of social contributionactivities tailored to the characteristics of individual regions.To help stamp out cancer, one of the world’s most deadly3

diseases, in fiscal 2014 we launched the Sysmex AgainstCancer campaign in the EMEA* region. Employee volunteersfrom different locations joined together in planning andconducting a variety of fund-raising events, with proceedsdonated to the World Cancer Research Fund.* Europe, the Middle East and AfricaAiming to Make Further Progress with a NewMid-Term Management PlanWe have recently formulated a new Group mid-termmanagement plan to guide Sysmex through fiscal 2017.In addition to developing high-value-added productsthat anticipate customers’ needs and rolling out a globalbusiness strategy, this plan calls for the Company toaugment management soundness and transparency byrevising its internal control system. These measures areintended to enhance our sustainable corporate value.We will also reinforce interactive communication withdiverse stakeholders.When formulating our mid-term management plan,we also revised our mid-term CSR plan. This plan is basedon the 10 principles of the United Nations Global Compact,which the Company joined in 2011, and ISO 26000. Theplan calls for further globalization of our businesses andre-establishes targets for future activities based on theincreasingly diverse and sophisticated demands andexpectations of our stakeholders.Sysmex aims to continue achieving sustainable growthgoing forward and strives to earn the trust of all ourstakeholders. As we undertake these endeavors, I ask for yourfurther understanding and support going forward.July 2015Hisashi IetsuguChairman and CEO4

Sysmex at a GlanceSupporting the Lives and Health of People Worldwide byProviding the Instruments, Reagents and Software used inIn-Vitro Diagnostics*Addressingthe ProblemsFaced byPatients andHealthcareProfessionalsReducing the Burden on PatientsHelping Physicians Diagnose SwiftlyReducing the Burden for LaboratoryTechnologists and Enhancing EfficiencySysmex productsare in usenear you.31132152

* In-vitro diagnostics are a type of laboratory testing. Whereas In-vitro diagnosticsinvolves tests conducted directly on patients’ bodies, such as electrocardiogramsand ultrasound, with In-vitro diagnosis tests are performed on samples (specimens)taken from a patient’s body, such as blood and urine, analyzing the shape and numberof constituents and cells contained in these samples.IntegratedSystemfrom R&D toAfter-SalesSupportR&D1ProductionSalesAfter-sales SupportHospitalsHematology FieldUrinalysis FieldHematology, which involves measuringand analyzing the number, type andsize of red, white and other bloodcells, allows the presence of anemia orinfectious disease to be determined.Urinalysis entails testing forthe presence of sugar, proteinor blood in the urine, aiding inthe diagnosis of a variety ofdiseases.XN-Series XN-2000Automated Hematology AnalyzerUF-1000 iAutomated Urine Particle AnalyzerHemostasis FieldLife Science FieldHemostasis supports the diagnosis andtreatment monitoring of the mechanismthat prevents blood from clotting (as inhemophilia) or disorders resulting fromthrombi (as with cerebral infarction).Leading-edge technologies are used to analyze genes and proteins,performing molecular diagnostics related to diseases, centeringon cancer.CS-5100Automated Blood Coagulation AnalyzerImmunochemistry FieldThe One-Step Nucleic Acid Amplification (OSNA) method that Sysmex hasdeveloped can be used to detect target genes in lymph nodes quickly, easilyand with a high degree of precision. This technology is currently eligible forinsurance coverage in testing for breast cancer, colorectal cancer and stomachcancer. The technology is also a focus of R&D attention in realizing personalizedmedicine, including for studying the effectiveness of anti-cancer agents.Immunochemistry is performed on bloodserum, the supernatant fluid isolatedafter blood separates, to test for thepresence of the hepatitis virus, measurethyroid hormone and check for cancer.HISCL-5000Automated Immunoassay System2Animal HospitalsOur products for animals help manage the healthof dogs and cats, as well as aquarium dolphinsand zoo animals.RD-100 iGene Amplification Detector3Sports Training FacilitiesOur health monitoring analyzer measuresurespling andhemoglobin levels without blood samplingondition.is used as a tool for monitoring athletic condition.pocH-100iV DiffAutomated Hematology AnalyzerASTRIM FITHealth Monitoring Analyzer6

Highlight 1Expanding our Lineup of Immunoassay Analyzers andReagents That Contribute to the Early Detection andTreatment of Infectious Diseases, Cancer and Other Diseases1Launch of a Compact and High-Performance Immunoassay Analyzer to MeetDiverse Needs around the WorldAs a way of measuring proteins and other substances inthe blood, immunochemistry testing has a wide range ofapplications, from diagnosis of infectious diseases, cancers,heart diseases and autoimmune diseases to monitoring thecourse of treatment. As such, immunochemistry testingplays an essential role in the early detection of diseasesand determination of therapeutic effects. To meet a varietyof testing needs related to immunochemistry testing, Sysmexhas expanded its lineup of HISCL-Series automatedimmunoassay analyzers.In September 2014, we launched the HISCL-800, whichcarries forward such HISCL-Series characteristics as minutesamples, a high degree of sensitivity and fast measurement(requiring only 17 minutes). At the same time, the HISCL-800is space-saving, with a footprint approximately 60% thewidth of the HISCL-5000. This instrument, which offershigh functionality and performance, as well as beingspace-saving, is expected to contribute to high-value-addedtesting in emerging markets such as China and other Asiancountries that are slated for future growth. Contributing totesting efficiency, the interface employs a large, 21-inchcolor touch-panel display and uses large icons to ensure ahigh level of visibility and operability.This model works with the Sysmex NetworkCommunications Systems (SNCS)* to determine the statusof a customer’s instrument and pre-empt malfunctions.This functionality helps in configuring a testing environmentthat is convenient and instills customer confidence.* A separate agreement is needed to use this service.HISCL-800Automated Immunoassay SystemDiseases for which immunochemistry tests contributeto diagnosis and monitoring of courses of mmunediseasesPrincipal characteristics of HISCL-Series fully automatedimmunoassay analyzersRapidmeasurementrequiring ity Increased testing efficiency Highly reliable testing results Reduced burden on patients7Instrument widthapproximately60of the existing model, the HISCL-5000Space-saving%

CWhat is viral hepatitis ?One of Japan’s mostprominent infectious diseasesAffectingsomeB32millionpeopleMay lead to liver cirrhosis andhepatocellular carcinomaCharacteristics of the new reagent, HISCL M2BPGiReduces the burden on patientsand leads to more efficient testingQuickly determines liver fibrosis progressionwith only a blood sampleAsymptomaticvirus carriers,acute larcarcinomaDegree of liver fibrosis progression Potential development into liver cirrhosis,hepatocellular carcinoma3A New Reagent That Helps toReduce the Burden on PatientsWhen Diagnosing HepaticVirus-Induced DiseasesIn January 2015, Sysmex’s new reagent for the HISCL-Series,the HISCL M2BPGi Assay Kit, received approval for healthinsurance coverage in Japan. This reagent is able todetermine in a short period of time the degree of liverfibrosis progression (hepatic fibrosis).Left untreated, viral hepatitis, one of Japan’s leadinginfectious diseases, can progress from chronic hepatitis andliver cirrhosis to hepatocellular carcinoma. To treat thisdisease, determining the degree of hepatic fibrosis due tothe hepatitis virus is key. At present, the typical testingprocess involves living tissue diagnosis, or taking a biopsyof the liver tissue. This method requires hospitalization,placing a substantial burden on the patient on both thephysical and economic fronts.Using the HISCL M2BPGi Assay Kit and HISCL-Seriesimmunoassay analyzers (HISCL-5000/2000i /800) allowsthe degree of hepatic fibrosis progression to be quicklymeasured with only a blood sample. This method is expectedto reduce the burden on the patient and lead to moreefficient testing.Contributing to the Automation of Testing for Atopic Dermatitis and GreatlyReducing the Time Required for DiagnosisIn April 2014, Sysmex began offering the HISCL TARC AssayKit for diagnosing atopic dermatitis.An objective approach to diagnosing atopic dermatitisinvolves measuring the amount of a substance called TARC*produced in the blood, thereby evaluating the severity ofthe disease and measuring therapeutic effects. In the past,these tests have been performed manually, typically requiringmore than three hours. By using a HISCL-Series instrumentand the HISCL TARC Assay Kit, this testing can be automated,reducing testing time to only around 17 minutes.By further expanding its lineup of immunoassay analyzersand reagents, Sysmex aims to contribute to enhancing thequality of testing and reducing the burden on patients.Time required to measureTARC production volumeSubstantiallyreduces testing timeTo approximately1/11of manual method* An abbreviation for thymus and activation-regulated chemokine, a substancethat causes cells in the blood to migrate to the skin, resulting in allergicinflammation.CustomerComment(From approximately 3 hours,15 minutes to around 17 minutes)Impressions from Using the HISCL-800: “Easy to Use and Hassle Free”We decided to introduce the HISCL-800 because it was perfectly sized for our laboratory and because of the quick,polite and reliable responses of Sysmex’s sales, support and scientific personnel. In addition to the instrumentitself being compact, all the necessary reagents can be stored within the instrument, which makes the lab neatand tidy. The touch-screen monitor makes the instrument easy to use and it requires hardly any maintenance.From my perspective, the HISCL-800 is easy to use and hassle free.Momoyo Sakai, Chief of Clinical Laboratory, Healthcare Corporation TOSEIKAI, Suwa Maternity Clinic8

Highlight 2Opening of i-Square, a Core Instrument Factory Focusedon Delivering High-Quality Products in a Stable Manner1Rearranging the Group’s Overall Production System to Meet Growing Demandfor TestingSysmex leverages its advanced “made in Japan” technologicalcapabilities to manufacture IVD instruments that are shippedto customers in more than 190 countries.Recent years have seen increasing healthcare and testingneeds in China and other emerging markets, as well asadvanced countries, and demand for our instruments hasgrown sharply. In response to these conditions, in June2014 Sysmex established i-Square, a new factory in the cityof Kakogawa, Hyogo Prefecture, with a site area of 30,000square meters. We took the establishment of i-Square asan opportunity to revise the Group’s instrument productionsystem. We reorganized our structure to manufacturecompact models at the Kakogawa Factory, as well as theSysmex Medica and Sysmex RA factories. Sysmex Medica(Himeji, Hyogo Prefecture) specializes in the assembly of

healthcare,” which is defined in the “Sysmex Way,” the corporate philosophy for the Sysmex Group, Sysmex works . on the 10 principles of the United Nations Global Compact, which the Company joined in 2011, and ISO 26000. The . (OSNA) method that Sysmex has developed can be used