Sustainability Report 2011 - Sysmex

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SysmexSustainability Report 2011

About this ReportEditorial policyGuidelines referencedSysmex publishes the annual “Sysmex Sustainability Report” in the hopes ofcommunicating our approaches and activities concerning corporate socialresponsibility (CSR) to our stakeholders and facilitating dialogs with them.In this fifth issue, particularly important CSR activities are reported inthe Highlight section. Typical activities are introduced for each stakeholdercategory, and each page lists the titles of related information posted onour website.· The Japanese Ministry of the Environment’s Environmental ReportingGuidelines (2007 ed.)· The Global Reporting Initiative (GRI)’s Sustainability Reporting Guidelines 2006Scope of this ReportInquiries about this reportPeriod reportedFY2010 (from April 1, 2010 to March 31, 2011). Some activities conductedoutside of this period are also included.CSR Promotion Department, CSR DivisionSysmex Corporation1-5-1, Wakinohama-Kaigandori, Chuo-ku, Kobe, Hyogo, 651-0073, JapanTel: 81-78-265-0500, Fax: 81-78-265-0524Organizations coveredSysmex Group (Sysmex Corporation and its subsidiaries both in Japan andabroad). For the purpose of this report, “Sysmex” refers to the “Sysmex Group”.1Sysmex Sustainability Report 201 1Date of publicationSeptember 2011

ContentsSysmex at a Glance 3Message from the President 5Corporate Philosophy and Core Behaviors 7Highlight1Highlight2Automated Detection of Colon Cancer Lymph NodeMetastasis Provides Rapid Testing Results 9Supporting Healthcare Facilities in DevelopingCountries through the Supply of Instruments 1 1Corporate Governance 1 3Behaviors and Commitment toward Our Customers 1 7Behaviors and Commitment toward Our Employees 1 9Behaviors and Commitment toward Our Business Partners 21Behaviors and Commitment toward Our Shareholders 22Behaviors and Commitment as a Good Corporate Citizen 23Behaviors and Commitment toward the Global Environment 27Environmental Management 27Sysmex Group Environmental Action Plan (Sysmex Eco-Vision 2020) 28Global Warming Countermeasures 29Effective Use of Resources and Waste Reduction/Effective Use of Water Resources/Others 30Environmental Impact of Business Activities 31Independent Opinion 32Corporate Data 33Cautionary statementsThis report contains both forward-looking statements and facts regarding the past about Sysmex Corporationand its group companies (the Sysmex Group). These forward-looking statements are based on the currentjudgments and assumptions of the Sysmex Group in light of the information currently available to it.Uncertainties inherent in such judgments and assumptions, the future course of our business operations, andfuture events may cause our actual results, performance, or achievements to be materially different from anyfuture results, performance, or achievements either expressed or implied within such forward-looking statements.Sysmex Sustainability Report 201 12

Sysmex at a GlanceSupporting the Lives and Health of People Worldwidethrough Clinical TestingSysmex supplies a wide range of instruments, reagents and software for clinical testing, such as hematology and urineanalysis, to healthcare facilities around the globe. We employ a highly integrated system for all business operations,starting with R&D, production, sales, and after-sales support in order to continuously enhance the clinical value andusability of our products. Through clinical testing, we help people all over the world enjoy longer, healthier lives.Creating high-value-added testing anddiagnostic technologiesWe strive to create high-value-added testing and diagnostictechnologies for a wide spectrum of ailments, includingblood/immunity diseases, infectious diseases, cancer andchronic disorders.ResearchandDevelopmentEnsuring high quality andstable product supplyOur quality control system is extensive and thorough.We have also established a global production system toensure the stable supply of reagents.ProductionProviding products and services tomore than 170 countriesThrough our global sales network, we provide high-qualityproducts and services to healthcare facilities in more than170 countries around the world.Responding accurately to each andevery inquiryWe take special effort to respond accurately to inquiriesreceived through our call center and over the network.We also provide extensive academic support.Global utionControlling company3Sysmex Sustainability Report 201 1After-SalesSupportSales

Enhancing clinical valuePatientsWe help to improve the quality oflife (QOL) of people everywherethrough high-value-added clinicaltesting and diagnosis for the earlydetection/prevention of diseases,and for the selection of suitabletreatment methods and predictionof post-operative conditions.DoctorsImprovingthe efficiency andquality of clinical testingWe help laboratories achievehigher efficiency and quality byproviding them with easy-to-useproducts, detailed after-salessupport, and optimal solutionsfor their diverse needs.ClinicaltechniciansMain ProductsAutomated hematologyanalyzerCoagulation analyzerFully automatedintegrated urine analyzerGene amplificationdetectorThis is a blood cell counter used forcounting red blood cells, whiteblood cells and blood platelets, andalso for analyzing their functions.This thrombosis and hemostasistester is used to analyze thelikelihood of blood clot formationand blood clot dissolving functions.This device is used to examineprotein, sugar, presence of bloodcells and solids (such as bacteriaand cells) in urine.This device amplifies the genes ofcancer cells (breast or colon cancer)using the OSNA method and detectsthe presence of cancer cell genes.Sysmex Sustainability Report 201 14

Message from the PresidentPursuing Healthcare Possibilities andBuilding the Trust and Confidence ofPeople across the GlobeContributing to the advancement of healthcareto social contribution activities carried out on a global scale byEver since its founding in 1968, Sysmex has created a wideNPOs and NGOs who work actively in the fields of healthcare,spectrum of products and services in the diagnostics field based oneducation and the environment. In fiscal 2010, we decided toadvanced technologies. Diagnostics play a vital role in healthcarebecome the special sponsor of the “Kobe Marathon 2011”, whichby enabling the early detection of disease, the determinationwill take place in Kobe in November 2011, concurring with theof treatment and the prevention of illness. At present, Sysmex’spurpose of the event: “To express gratitude to everyone whoproducts are being used at healthcare facilities in over 170supported the recovery after the Great Hanshin-Awaji Earthquake”.countries around the world.changes due to changing social structures. In emerging countries,Participating in the United NationsGlobal Compacteconomic development and population growth are rapidlyIn order to further promote CSR activities as a global corporation,increasing healthcare needs. On the other hand, advancedSysmex participated in the United Nations Global Compact incountries are facing declining birthrates and aging populations,February 2011.The healthcare environment is currently undergoing dramaticand individual values on health are increasingly diversifying.Sysmex is responding to such changes and striving to createand to incorporate and implement theinnovative values with the aim of contributing to the advancementUN Global Compact’s ten principles inof healthcare. We want to respond to the wishes of people acrossthe areas of human rights, labor, thethe globe: “to stay healthy”.environment and anti-corruption into ourIn fiscal 2010, Sysmex obtained approval from the Ministryactivities as a means of further buildingof Health, Labour and Welfare of Japan to manufacture andthe trust and confidence of people acrossmarket reagents for the detection of colon cancer lymph nodethe globe.metastasis. By providing more accurate results in a shorter time,this system helps healthcare professionals to make objective andappropriate decisions on post-operative treatment.Building the trust and confidence ofall stakeholdersSysmex believes that continually building trust and confidencePromoting Eco-Vision andour mid-term environmental activitiesIn response to global environmental issues, Sysmex formulatedthe Group Environmental Action Plan (Sysmex Eco-Vision 2020)in April 2010. This Action Plan set forth long-term environmentalobjectives for fiscal 2020.is the basis of fulfilling our corporate social responsibility (CSR).It also sets targets focusing on reducing the environmentalBased on our Group Corporate Philosophy, the “Sysmex Way”,burden in each stage of the product lifecycle, which consists ofand our Core Behaviors, we conduct various activities in an effortproduct design, production, sales, product use and disposal.to bring solid trust and confidence to our customers, businessThrough these efforts, we are striving to save energy and resourcespartners, employees, shareholders, and other stakeholders.in our business activities and to actively develop and distributeIn addition to contributing to the health of people around theeco - friendly products and services.world, we actively carry out environmental activities and socialcontribution activities.In fiscal 2010, we continuously conducted VQ (Value Quest)5We took this opportunity to reconfirm our social responsibilityCreating innovative values based on ourmid-term management planActivities, through which all of our employees worldwide thinkThis year, Sysmex formulated a new mid-term managementabout and propose ways to further strengthen our abovementionedplan. Guided by the new plan, we will strive to further improveefforts. For example, we have participated in the Kobe Medicalthe usability of our products, provide high clinical value, andIndustry Development Project and continued to provide supportstrengthen our response to healthcare needs around the world.Sysmex Sustainability Report 201 1

In emerging countries, where the establishment of thehealthcare infrastructure is urgently needed, we will provideproducts and services that meet local healthcare needs, andfocus on improving our support systems. In the area of molecularWe will continue in our efforts to achieve sustainabledevelopment of the Group and the global community.We ask our stakeholders for their continued support andgenerous understanding of all of our endeavors.diagnosis pertaining to cancer and other diseases, we aim to createoriginal testing technologies in an effort to contribute to thefurther advancement of healthcare.Supporting disaster-stricken areasWe would like to express our heartfelt condolences to all the victimsHisashi IetsuguPresident and CEOof the Great Tohoku Pacific Earthquake, and our sincere sympathyto those who have been affected by this terrible tragedy includingthose who were compelled to leave their homes and businesses.Healthcare infrastructure is an essential and critical factorin disaster recovery. We have provided as much support aspossible for the early restoration of devastated healthcarefacilities and the healthcare support network through the freeuse of testing instruments and the provision of reagents.It is our hope that those affected by the tragedy will beable to return to their normal lives in a relatively short time.We would also like to take this opportunity to express ourdeepest gratitude for the warm support for disaster victims thatarrived from overseas.Sysmex Sustainability Report 201 16

Corporate Philosophy and Core BehaviorsCorporate PhilosophySysmex WayMissionShaping the advancement of healthcareValueWe continue to create unique and innovative values,while building trust and confidenceMindWith passion and flexibility,we demonstrate our individual competence and unsurpassed teamwork.Core 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 where theycan realize their full potential.We value the spirit of independence and challenge, provide employees with opportunities for self-fulfillmentand 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 company that 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 our managementpolicies, while promoting information disclosure and close communications.We commit ourselves to a consistent yet innovative style of management, in order to achieve sustainable growthand increased shareholder value.To SocietyWe carry out our business in strict compliance with laws and regulations, as well as in adherence to high ethical standards.As a responsible member of society, we play an active role in resolving environmental issues and other problemsthat impact our society today.7Sysmex Sustainability Report 201 1

Sysmex Employees around the World Putthe Sysmex Way into PracticePromoting VQ (Value Quest) Activities to liveup to the Sysmex WayGiving Shape to Various Ideas Proposed byEmployeesIn order to ensure steady implementation of the “Sysmex Way”,Some of the ideas for VQ Activities contributed by ourour Corporate Philosophy, in fiscal 2008 we kicked off the VQemployees have already been implemented, including teachingActivities, through which each employee is encouraged toa class at a junior high school in our host city of Kobe and thepropose ideas and discuss with others about how to put theopening of a “portal site of good working conditions” on theSysmex Way into practice.company intranet in fiscal 2009. We have also initiated theThis companywide initiative continued on to fiscal 2010.In response to President Ietsugu’s question, various ideas werereceived from our employees around the world, and theseideas were then used to form 22 teams, which held a series ofdiscussions that lasted for several months. In the VQ Sessionheld in December, the fruits of these intensive discussions werepresented. Attended by some 150 people, including employeesof our Group companies in Japan and overseas, the event providedan opportunity for people from different regions and organizationsfollowing activities. Dialogue on work efficiency improvement and work-life balance(see page 20) Environment preservation activities by the “Eco Team” formedby Japanese employees (see page 24) “Greener Sysmex” activities by employees in the Asia-Pacificregion (see page 26)Going forward, Sysmex will continue VQ Activities such asthese aimed at putting the Sysmex Way into practice.to communicate with each other.Fiscal 2010 VQ SessionSysmex Sustainability Report 201 18

Highlight1Automated Detection of Colon CancerLymph Node Metastasis Provides RapidTesting ResultsSysmex’s active involvement in creating new cancertesting technologies led to the development of a rapidbreast cancer lymph node metastasis testing system(LINOAMP BC and LYNORHAG diagnostic reagents,and RD-100i gene amplification detector), which wasreleased to markets in Europe in fiscal 2006 and Japan infiscal 2008. In fiscal 2010, Sysmex received manufacturingand marketing approval from the Ministry of Health,Labour and Welfare of Japan for applying these reagentsto the detection of colon cancer lymph node metastasis.Providing Vital Information for Post-surgicalTherapeutic Principle by Testing for LymphNode Metastasis9particularly prevalent, along with lung and stomach cancer.Cancer can spread from its originating site to lymph nodesby lymph fluid called lymph node metastasis, and then to otherparts of the body through the process. Diagnosis of cancermetastasis is extremely important for predicting the characteristicsand future progression of the cancer. This is also used to determinepost-surgical therapeutic principle.A Detection System for the Fast and AccurateDiagnosis of Lymph Node Metastases thatProvides Rapid ResultsIn the present method of diagnosing colon cancer lymph nodemetastasis, following a surgery, a pathologist prepares a seriesof pathological samples from surgically removed lymph nodes,and then views the samples under a microscope to determineIn Japan, cancer accounts for more than 30% of all deaths, andwhether the cancer has metastasized. However, the need tothe incidence of cancer is rising each year. Colon cancer ispainstakingly diagnose a large number of lymph nodes placesSysmex Sustainability Report 201 1

Colon Cancer Lymph Node Metastasis Detection Based on the OSNA MethodParts of lymph nodes aresurgically sampled.Testing with the OSNA methodMeasurement by a proprietary instrument and reagent are used to amplify the cancer cell genes for measurement.SolubilizationOne-step amplificationdetection of the target geneand judgment of the resultsLymph nodeOSNA stands for One-step Nucleic AcidAmplification. With the OSNA method,sample lymph nodes are dissolved, andcancer genes contained in the samplesare amplified and detected to determinecancer lymph node metastasis. This is aone-step testing method.[Features] Results are rapidly obtained. Automated diagnosis eliminates accuracydisparities among medical institutions.Preparation of samplesDiagnosisApprox.1 dayDiagnosisApprox.1 weekConfirmation usinga microscopeConfirmation of the presence of cancer cells by a pathologist using a microscopeConventional pathological diagnosis1 Research and development oftechnologies in the life sciences2 Gene amplification detectorRD-100i3 Amplification reagent12LINOAMP 3a major burden on the pathologist.A detection system for the fast and accurate diagnosis oflymph node metastases applying the OSNA (One-step Nucleic AcidAmplification) method developed by Sysmex greatly simplifiesthe testing. While the conventional method takes about a weekto provide diagnostic results, the new system has the resultsready the day after the surgery.Also, with the conventional pathological diagnostic method,the process of preparing samples and confirming the presenceof cancer cells depends largely on the skill and experience ofthe pathologist. It is said that this causes the diagnostic accuracyto vary from one me

Supporting Healthcare Facilities in Developing Countries through the Supply of Instruments 13 17 19 21 22 23 1 1 . using the OSNA method and detects the presence of cancer cell genes. . Participating in the United Nat