CSR 2018To Fulfill Our Corporate Social Responsibility SMC acknowledges corporate social...

CSR 2018C S R R e p o r t 2 0 1 8

T o p M e s s a g e

As a General Supplier of Pneumatic Instruments

Pneumatic instruments, the mainstay products of SMC Corporation (SMC), are used as component parts in production lines and conveyor lines in automated factories, machine tools and industrial robots, and play an essential role in supporting factory automation (FA).Our customers conduct businesses in a wide range of industries (e.g., automobile, semi-conductors, machine tools, electrical appliances, food processing machinery and medical equipment). The customer base is not limited to the leading countries and emerging countries, but continues to expand throughout the world along with the progress of industrialization.Accordingly, SMC has established a local presence in more than 80 countries in order to globally respond to customer requests.SMC considers “contributing to automated, labor-saving operations in industries,” through the manufacturing and sales of pneumatic instruments and other automatic control equipment , as its social mission.

To Fulfill Our Corporate Social Responsibility

SMC acknowledges corporate social responsibility (CSR) and aims to become a company trusted and needed by all of our stakeholders including customers, suppliers, shareholders, investors, employees and local communities.To th is end, SMC has establ ished and communicated the “SMC Group Code of

Conduct” to be complied with by all officers and employees of our group, and also requested our suppliers to respect the intent of this Code of Conduct.The SMC Group Code of Conduct prohibits the use of conflict minerals, offering of improper gifts to public officers, unfair competition, any act that disrespects the personality or dignity of employees, unreasonable discrimination, child labor and forced labor. It declares that we will comply with all relevant laws and regulations as well as international rules, including rules on the management of workplace safety and sanitation, in addition to environment-related regulations.

To Achieve a Sustainable Society

Pneumatic instruments are environment-friendly automatic control equipment powered by compressed air which can be emitted to the atmosphere without creating pollution. SMC believes that the growth of demand and use of pneumatic instruments will, in itself, lead to reducing the environmental burdens of the entire society.Building upon the advanced technologies we have accumulated over the years, we will continue to develop and supply automated control equipment products that deliver improved energy conservation performance with reduced size and weight. By responding to the customer requests from around the world, SMC will contribute to the sustainable growth of industries and expansion of technological innovations.

We contribute to the sustainable growth and expansion of technological innovationsthrough the manufacturing and sales of automatic control equipment.

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We are also taking measures considering protection of environment throughout the whole process of our business activities, such as avoiding the use of substances of concern, promoting energy-saving and resource-saving, reducing packaging materials, cutting down noise levels, reducing the volume and ensuring proper treatment of wastewater and waste discharge.

Contents

We contribute to the sustainable growth and expansion of technological innovationsthrough the manufacturing and sales of automatic control equipment.

Yoshiyuki Takada, ChairmanLeft

Katsunori Maruyama, PresidentRight

Top Message 1

Environment

　Eco-Management 3

　Eco-Factory 6

　Eco-Products 9

Society

　Together with Our Employees 11

　Together with Our Customers/Business Partners 11

　Together with Local Communities 12

Governance

　Corporate Governance 13

Corporate Summary 14

Editorial PolicySMC publishes this CSR Report aiming to communicate widely to all of our stakeholders the overview of our philosophy and initiatives towards fulfilling corporate social responsibility (CSR).We look forward to receiving feedback and comments on SMC’s CSR initiatives and the method of disclosure.

Pertaining PeriodIn principle, this report covers the period from April 2017 to March 2018, but also includes some information on activities before and after this period.

Scope of the ReportThis report primarily focuses on SMC Corporation and covers some of its group companies.

Guidelines Used as ReferenceIn publishing this report, we referenced ISO 26000, the international standards concerning social responsibility.

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E n v i r o n m e n t Environment

SMC’s mainstay pneumatic instruments are environment-friendly automatic control equipment powered by compressed air which can be emitted to the atmosphere without creating pollution. Our equipment can contribute to the promotion of energy conservation in all industrial fields. SMC will respond to the customer requests in developing and providing products with better energy performance.SMC’s Environmental Policy and the status of ISO certification are made available via the Company’s website.

Our Approach towards ESG (Environmental, Social and Governance) Sustainability

https://www.smcworld.com/qc/ja/

Eco-Management

SMC Group Code of Conduct – To Work on Environmental Issues

1 We will identify the environmental impacts of our business activities, products and services and strive to reduce environmental burden and prevent pollution, and to make continual improvement of our environmental management system.

2 We will comply with all environment-related laws, regulations and agreements, and enhance collaboration with our customers, neighbors and local communities.

3 We will minimize the environmental impacts from our design, development and production activities.(1) We will promote the development of environment-friendly products.(2) We will use energy efficiently to prevent global warming.(3) We will promote the reduction and recycling of waste.

4 We will ensure that the action plans are implemented properly to achieve the environmental objectives and goals.

5 We will make this policy known to all as well as release it to the general public.

❶ We will strive to develop and supply environment-friendly products.❷ We will consider protection of environment throughout the whole process of

business operation.　 ⃝We will comply with regulations on banned substances.　 ⃝ We will ensure proper treatment of wastewater and air exhaustion, and disposal

of waste, and will work on reducing waste.　 ⃝We will be thorough in our effort to save natural resources and energy.

Environmental Policy

This is a logo of SMC’s environmental preservation activities. It is a heart-shaped design with a blue earth and a young leaf . The mark appears on our Environmental Policy as well as on documents a n d b u l l e t i n s t o e n h a n c e awareness among our employees.

We will recognize that preservation of global environment is an essential condition for our company’s existence and activities as well as a common issue for all humanity. We will work on preserving and improving the environment where people can live safely with an abundance of nature.

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Environmental Objectives and FY2017 Results and Evaluation

Framework of ISO 14001:2015

Environmental ObjectivesGoals to achieve in 3-year period of FY2017-2019

Environmental Targets for FY2017 Results Evaluation

Product assessments (Environmental compatibility)

Design and development of environment-friendly products

Conducted assessments using score evaluation of current statusTotal of 75 models or more in three years: 900 points or higher

Design and development of environment-friendly products

Conducted assessments using score evaluation of current status25 models or more: 300 points or higher

30 models:388 points Achieved

Business activities (Environmental conservation)

Promote energy-saving, resource-saving and reduction of environmental burden through benef ic ia l env ironmenta l activities in our original taskPrevention of global warmingReduction of CO2 emissionSixth Term (FY2014-2016): Average of 5% or more reduction per unit of production

Reduction of CO2 emissionSixth Term (FY2014-2016): Av e r a g e o f 3 % o r m o r e reduction per unit of production

21.5%reduction Achieved

Saving of resourcesReduction of waste dischargeSixth Term (FY2014-2016): Average of 5% or more reduction per unit of production

Reduction of waste dischargeSixth Term (FY2014-2016): Av e r a g e o f 3 % o r m o r e reduction per unit of production

16.4%reduction Achieved

Communication (Coexistence with society)

Social contribution activitiesCommunity beautification activities

Social contribution activitiesCommunity beautification activities

A l l r e g i o n a l groups conducted as planned

Achieved

Promotion of climate change actions

Promotion of climate change actionsP a r t i c i p a t i o n i n i n i t i a t i v e s organized by local governments and industry groupsConduction of education and awareness building programs

A l l r e g i o n a l groups conducted as planned

Achieved

As part of our initiatives under the Environmental Management System (EMS) which adheres to ISO 14001, SMC defines a set of Environmental Objectives to be achieved over a period of three years and Environmental Targets for each fiscal year, and manages and evaluates the progress.In FY2017, we achieved all of our Environmental Targets as described below:

❶ We conducted product assessments to be utilized for the design and development of environment-friendly products.❷ As an initiative to prevent global warming, we achieved a 21.5% reduction of CO2 emissions per unit of production

compared to the Sixth Term (FY2014-2016) average. As an initiative to save resources, we achieved a 16.4% reduction of waste discharged per unit of production compared to the Sixth Term (FY2014-2016) average.

❸ All regional groups consisting of our major production facilities participated in community beautification activities and climate change actions organized by local governments and industry groups, as well as conducted awareness building programs for employees.

Performance evaluation

Planning

Support & operationImprovement Leadership

Context of theOrganization

Intended outcome of the EMS

P

DA

C

・ Global warming・ Reorganization of

production facilities・ Aging facilities ・ Use of hazardous

chemical substances

Internal and external issues

・ D e v e l o p m e n t o f environment-friendly products

・ C o m p l i a n c e w i t h environment-related laws and regulations

・ Intensified prevention of pollution

Needs and expectations of interested parties

Scope of Application of the EnvironmentalManagement System (EMS)

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E n v i r o n m e n t

SMC has established a CSR Committee chaired by the President and focused mainly on responding to customer requests and inquiries on CSR-related issues.

CSR Promotion System

SMC offers educational seminars and practical training on environmental issues for its employees.At the Tsukuba Technical Center, a center of excellence for the SMC Group’s research and development activities, we conduct training for the certification of EMS Internal Auditors on a continuous basis to nurture human resources who can ensure the viability of ISO 14001.

Environmental Training

Environmental training for employees 7,025 attendees

Emergency response training 95 attendees

Training for front-line workers 369 attendees

Participation in external environment-related training sessions 16 attendees

Environmental training for environment-related partner companies 110 companies

EMS Internal Auditor training 61 attendees

Primary Responsibilities of the CSR Committee1 To plan, develop and manage policies related to CSR and other matters.2 To respond to questionnaires on CSR, etc., from users and dealing with audits (site visits).3 To conduct audits on the progress of implementation of policies related to CSR, etc.4 To take necessary measures based on the progress of implementation of policies and audit

results related to CSR, etc.

EMS Internal Auditors receiving training

Training conducted in FY2017

5

Eco-FactorySMC implements ISO 14001, the international standards related to environmental management, and began to make organizational efforts in implementing environment-friendly and energy-saving measures at our factories since 1998 (acquired certification in December 1999).

❶ SMC is designated as a Specified Business under the Act on Rationalizing Energy Use. Furthermore, our Soka 1st Factory, Tsukuba 1st Factory, Tsukuba Technical Center, Kamaishi Factory, and Yamatsuri Factory are designated as Designated Energy Management Factories as the energy consumption at each factory for a given business year is 1,500kL (crude oil equivalent) or more.

❷ Specified Businesses and Designated Energy Management Factories are obliged to establish targets to reduce their energy consumption by 1% or greater per year, as well as to manage energy consumption on an organizational basis and submit periodic reports.

About Specified Businesses

The largest source of CO2 emissions in SMC’s business activities is from the use of electricity. SMC aims to reduce the emission of CO2 by adding up steady energy-saving efforts.

Energy Consumption & CO2 Emission

0

20%

40%

60%

80%

100%

120%

2000

81%

110%101%

87%82% 82%

68% 67%71% 73%

55% 52%58% 59% 57% 54% 52%

47%

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Ratio in relation to FY1998 (set as 100%).(Comparison of emission intensity)

Status of reduction of CO2 emissions (intensity)

6


I N P U T SMC’s business activities O U T P U T

●plastic waste ●paper ●vinyl chloride●rubber ●noncombustible items●corrugated boards

Exampleof sorting

SMC practices strict waste sorting and promotes the 3Rs - Reduce, Reuse and Recycle. We sell computers and printers out of use as material of value to recycle operators. We aim to reduce our waste disposal costs by transforming waste into valuable resources.

SMC strives to eliminate the use of CFCs by switching to alternatives with lower GWP values, and to reduce the overall use of chemical substances (through prevention of evaporation, prevention of removal, and reuse).

Reduction of Industrial Wastes

Proper Management of Chemical Substances

0

500

1,000

1,500

2,000

2,500

2013 2014 2015 2016 2017

（t）

Waste discharge volume

Status of waste discharge

0

40

20

60

80

100

120

2002 2004 2006 2008 2016201420122010

(index)Index uses ratio of discharge per unit of production in relation to FY2002 (set as 100).

Status of reduction of waste discharge

10

20

30

40

21.2

1.03.5

22.4

2.13.7

21.5

3.93.5

21.8

4.6

4.1

25.7

8.3

4.4

20152013 2014 2016 2017

Volume handled Kamaishi Factory Shimotsuma Factory Soka Factory

0

（t）

Use of chemical substances and emissions into the environment

0

10

20

30

2013 2014 2015 2016 2017

（t）

18.8 18.1 18.6 18.4

25.7

Trends in annual emissions into the environment

SMC keeps track of the environmental burdens generated through consumption of resources and energy during the design, development and manufacturing of our products.

Material Balance

*1: CO2 from production activities is the amount of CO2 emitted from use of energy.*2: Recycle refers to the amount that is discharged as material of value and reused and/or recycled as materials and thermal energy.

Materials 40,515 t Products

CO2 from production activities*1 42,436 t

Recycle*2 3,282 t

Waste 2,489 t

Energy 788,273 GJ

Chemical substances 1,374 t

Water 260,000 m3

Packaging materials 2,212 t

Paper 104 t

Design

Procurement

Development

Production

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Installation of signage board and dedicated storage space (Tsukuba Technical Center)

With the revision of the laws that entered into force on October 1, 2017, certain products such as fluorescent lamps are now categorized as “industrial wastes of mercury-added products” and must be indicated on the signage board of the storage space and stored in a partitioned space to avoid mixing with other objects.Accordingly, SMC installed signage boards and dedicated storage spaces.

Compliance with Environmental Regulations

Monitors the air flow rate Shut-off of air source during plant downtime

* The air used to discharge the remaining air from air pipes when a plant starts operation.

●mercury batteries ●switches and relays ●fluorescent lamps●manometers ●thermometers ●temperature gauges, etc.

Applicable items

SMC uses flow switches, its own products, to monitor the air flow rates at each factory to enable early detection of air leaks due to equipment failure. We are also working on improving energy efficiency. Our efforts include the use of mechanisms that automatically shut off the air source during plant downtime, which reduced the use of purge air* by 30% (compared to our conventional operation).

Initiatives at Each Factory

SMC recognizes that the conservation of the earth’s environment is one of the most important challenges facing human beings, and that its contribution is to develop and supply environmentally friendly products to continuously reduce environmental burdens under the basic principle of striving to achieve a pleasant global environment through all aspects of its business activities.As part of its initiatives, SMC conducts green procurement of products, materials, components, semi-finished goods, secondary materials, and packaging materials used in the design, development and production process.

Green Procurement

Symbol mark of SMC Green Procurement

Green Procurement CriteriaSMC establishes its own guidelines (SMC Green Procurement Criteria) for the selection of compliant materials and components based on domestic laws and regulations on substances of concern, RoHS, REACH and other overseas regulations as well as on customer demands.

Environmental Considerations of SMC Products1 Energy-saving, air-saving2 Resource-saving, space-saving3 Reduction of environmentally hazardous substances4 Attention to transporting and packaging5 Attention to disposal6 Reduction of noise, vibration and odor7 Disclosure of information

Flow switch Soft startup valve

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Eco-ProductsSMC works to reduce environmental burdens created by its products from the design and development phases through to the entire life-cycle (manufacturing, packaging, transporting, use and disposal), and strives to produce environment-friendly products.By conducting product assessments, we also evaluate the environmental impacts of our products in terms of attributes such as resource-saving, long-life, energy-saving, safety, types and amount of packaging materials and waste disposal in order to develop environmentally sound products.

Air blow50％Actuators

20％

Air leak15％

Tools5％ Other

10％

Air consumption

Electricity consumption

Air 20％

Air consumptionin factories

Air purge Actuators

Lower pressure in pipelines Management

Air blow Blow using air gunsAir purge for workpiece placement confirmationStop air source during instrument downtime

Reduce pressure on one side of cylinder

Reduce pressure loss in pipelines Gain visibility

Blow chips during processing Low pressure blow guns

Energy-saving themeEnergy-saving theme Energy-saving themeEnergy-saving theme Energy-saving themeEnergy-saving theme Energy-saving themeEnergy-saving theme

Energy-saving themeEnergy-saving theme Energy-saving themeEnergy-saving theme Energy-saving themeEnergy-saving theme

Low wattage

Air purge Actuators








Low wattage

Air purge Actuators








Low wattage

Air purge Actuators








Low wattage

Air purge Actuators








Low wattage

Air purge Actuators








Low wattage

Air purge Actuators








Low wattage

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Weight

52% reduction

Total length

44% reduction

Air consumption

35% reduction

Examples of Environment-Friendly Products

① Reduced air consumption by improving the response times to open/close of valves.

② Compliant with revised RoHS [2011/65/EU, (EU) 2015/863] (Directive concerning environmental restrictions).

Energy-saving, air-saving, reduction of environmentally hazardous substances1 Energy-saving, air-saving,

noise reduction2

Drastic change in conventional mechanism with a new angle adjuster structure; reduced the amount of materials used and number of components with new component materials.

① With a new guide rod structure, significantly reduced the amount of materials used for reduced weight and size.

② Increased applications with greater variation of bore sizes and porting screw specs.

Resource-saving, space-saving, energy-saving, disposal considerations, transportation considerations4

Increased flow capacity with new element structure; reduced pressure d rop ; l igh te r we ight w i th new component materials and shape.

3 Energy-saving, air-saving, resource-saving

Resource-saving, space-saving, energy-saving, disposal considerations, transportation considerations5

Weight

69% reduction

Resource-saving, space-saving, energy-saving6

Pulse valve (valve for dust collectors) Vacuum units

Compact guide cylinder Compressed air purification filter

Rotary actuator

● SMC promotes the reduction of packaging materials, repeated use and review of materials (selection of materials containing less amount of substances that generate toxic gas upon disposal).

● SMC gives consideration to the disposal of its products by improving decomposability and reducing the variation of materials used.

● SMC discloses to its customers information on the content and use of substances of concern in its products.

Occupied volume

49% reduction

① With the new circuit structure of components, significantly reduced the number of components and amount of materials used, achieving reduced weight and size.

② Increased component performance with the use of power-saving circuit; saves energy with the new structure.

5 Port Solenoid Valve Plug-in Type

① Reduced air consumption by adjusting with SMC’s digital pressure switch equipped with energy-saving function, achieving significant increase in suction flow.

② Improved noise reduction with SMC’ s silencer.

Air consumption

90% reduction

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S o c i a l Society

FY2015 FY2016 FY2017

No. of employees with disabilities 128 139 152

Employment rates o f p e o p le w i t h disabilities

2.1% 2.2% 2.4%

Percentage of annual paid leave taken 71.2% 74.7% 73.2%

Turnover rate of employees leaving within 3 years

8.0% 3.1% 5.3%

Together with Our Employees

We will strive to maintain a safe and pleasant work environment where the employees respect the personality and individuality of each other, have their own motivation and can demonstrate their abil i t ies without experiencing unreasonable discrimination based on nationality, race, ethnicity, faith, religion, sex or any other personal attribution.

We will compete in a free and fair manner. In addition, we will strive to earn trust from customers by adequately providing products, services and correct product information that address customers’ needs.We will establish relationship of mutual trust with our clients and suppliers through free and fair business relations, and aim for mutual development.

Respect for Human Rights

To Earn Trust from Customers and Business Partners

● Initiatives for the employment of people with disabilities

The number of people with disabilities employed by SMC, and the ratio of employees with disabilities, have increased every year during FY2015 - 2017.● Status of annual paid leave takenThe percentages of paid leave taken exceed 70% of entitled annual paid leave, every fiscal year.● Status of new hire retentionThe turnover rate of employees leaving within three years remains under 10%.

We offer various schemes to provide a better working environment for women including childcare leave, maternity leave and reduced work hours.We also promote exchange of personnel and business integration with our overseas subsidiaries. Approximately 70% of the SMC Group’s total employees are non-Japanese. Approximately 75% of the top management of our Group companies are non-Japanese.

Diversity, Including Active Participation of Women

SMC strives to provide information concerning conflict minerals from the database for customers using the Conflict Mineral Reporting Template (CMRT). We continue to conduct extensive research with the cooperation of our partner suppliers in order to ensure the accuracy of the information on the CMRT.

Efforts against Conflict Mineral Issues

As part of its energy-saving initiatives, SMC invites customers to its training rooms and showrooms in the sales offices in Tokyo, Toyota and Kyoto, to let them operate actual products and experience the energy conservation performance.

Energy-Saving Initiatives

1 We will keep the customer-first policy and strive to provide excellent products and services.

2 We will pay attention to the safety of products and endeavor to take appropriate safety-related measures.

3 We will not engage in any unfair trade practice, such as that in violation of the relevant antitrust laws.

4 We will respect intellectual properties of customers, other companies and individuals, and at the same time maintain the intellectual properties and brand of the SMC Group.

5 We will conduct strict management of not only trade secrets and personal information of customers and business partners, but also those of our company.

Together with Our Customers/Business Partners

Seminar Topics❶ The significance of energy-saving❷ The realities of factory energy and

pneumatic energy❸ Compressed air: energy-saving

themes and targets❹ How to deal with air leak❺ How to increase efficiency of air

blow❻ How to improve pressure loss❼ Questions & answers

Seminar on pneumatic technologies

Tokyo Showroom

SMC Group Code of Conduct

SMC Group Code of Conduct

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We will consider the needs of society and disclose necessary corporate information in a timely manner in order to widely communicate with society as a good corporate citizen. Moreover, we will aim to coexist with the local community by cooperating in activities which contribute to the development of the region and the comfortable and safe lives of people living there.

SMC participates in green conservation activities organized by the Saitama Greenery Trust Association. SMC employees take part in weeding, pruning and cleaning activities such as raking of leaves, and other activities to preserve the local greenery.

Green Conservation Activities by the Greenery Trust

Activities 1

To support the recovery from the Great East Japan Earthquake, we made donations to Kamaishi City, Iwate Prefecture. The funds were used for the construction costs of Kaminakashima Center for Early Childhood Education and Care, Sukusuku Parent-Child Classroom, and Kaminakashima Children’s House, in Kamaishi City.

Donation to Kamaishi City Used for the Construction of Children’s House

Activities 3

Employees of the factories in Soka area regularly clean the surrounding area of their factories (pictured below: employees taking part in Soka City’s Clean Furusato Community Zero Waste Activity).

Participation in community beautification activities

Activities 2

Together with Local CommunitiesSMC Group Code of Conduct

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G o v e r n a n c e Governance

Meeting of Shareholders

Board ofDirectors

President

Group Companies

Business Execution Divisions

Accounting Auditors

Board ofCorporateAuditors

Managem

ent Meeting

Com

pliance Com

mittee

Disclosure C

omm

ittee

Internal Audit

Section

Internal Control Promotion

Section

Coordination

Appointment/Dismissal

Appointment/Dismissal/

Supervision

Consultation

Direction/Order/

Supervision

Direction/Order/Supervision

Operational Audit

Internal Control Assessment

Audit of Internal Control

Accounting Audit

Executive Officers Meeting

Independent Executive

CouncilCorporate Auditors’ Audit

Corporate Governance

SMC considers establishing a corporate governance framework ensuring both quick decision-making and management transparency to be extremely important for the purposes of realizing continuous growth, increasing medium-to long-term corporate value and protecting the interests of shareholders.

Basic Views

Corporate Governance System

SMC considers that its highest priority issue is to maximize shareholder value through corporate value improvement accompanied by medium- to long-term profit growth.Concerning the return of profit to our shareholders, we adopt a basic policy of maintaining stable dividend payment. At the same time, we will strive to enhance the profit return even further by considering a flexible acquisition of treasury shares depending on the situation.

Basic Policy on Dividends

Masanobu Kaizu, Outside Director

Current Status of SMC and Challenges Faced - From a Perspective of an Outside Director

SMC is a general supplier of pneumatic instruments that are essential for the automation of automobile manufacturing and semiconductor manufacturing.As an analyst and economist, who has watched the Japanese and overseas industries over the years, I can point out two distinctive, advantageous characteristics of SMC. The most prominent characteristic is its high profit margins. It boasts top global market share of 36%, holding nearly twice of that of the runner-up company. With a strong cost competitive edge supported by economies of scale, the Company achieved operating profit to net sales of 32.6% (fiscal year ended March 2018).The second characteristic is its high growth potential in the medium-to long-term. SMC offers the prospect of benefiting from more investments in the global semiconductor market as well as increasing shares in industries such as medical equipment and food processing machinery.Geographically, its market shares in Europe and the United States are at 20 to 25%, leaving the potential to expand.

The Company has already completed a large-scale factory in Vietnam which will serve as a new mass production facility and offer greater capacity in the years to come.Meanwhile, more can be done to improve its ESG initiatives where there is growing interest among institutional investors.Pneumatic instruments are clean by definition, so the Company already achieves a high level in E (environment). The challenges are in the S (society) and G (governance).Between the two, there is steady progress in the governance efforts, and as Outside Directors, we are proud to have fulfilled our responsibility to a certain degree. SMC’s construction of newly expanding production facilities and the full-fledged utilization of information technologies are plans that were advised by Outside Directors. Outside Directors are also responsible for checking the quality of profits, management of inventory, and the progress of capital investment projects for each quarter settlement.Going forward, I wish to actively offer my opinion on the social issues and support SMC’s initiatives, for example, on how to make the company more open to society.

0

100

200

300

400SMC TOPIX TOPIX machinery

(yen)

FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017

Changes in Total Shareholder Return (TSR)

* Changes in TSR shows share value (index) assuming cash distributions are reinvested back into index (Total Return Index), with closing-price data of March 31, 2012, set as 100.

13

Corporate SummaryCompany name SMC Corporation

Head office Akihabara UDX Building (15F), 4-14-1, Soto-Kanda, Chiyoda-ku, Tokyo 101-0021, Japan

Established April 27, 1959Chairman Yoshiyuki TakadaPresident Katsunori Maruyama

Major businesses Manufacture and sales of automatic control equipment including pneumatic instruments

Number of issued shares 67,369,359

Stock Listing First Section, Tokyo Stock ExchangeCapital stock 61 billion yenNet sales 591.0 billion yen (consolidated)Total assets 1342.8 billion yen (consolidated)Number ofemployees 19,680 (consolidated)

Equity ratio 84.3%

Global Network

European Technical Center (U.K.)

China Technical Center

Tsukuba Technical Center US Technical Center

European Technical Center (Germany)

Sales offices

46 countries/regions

Production facilities


Sales offices




Sales offices



5 countries/regions

83 countries/regions worldwide

Production facilities: 30 countries/regions

Local services in 500 locations

0

100

200

300

400 39.53

45.8047.56 48.76

59.10

500

FY2013 FY2014 FY2015 FY2016 FY2017

Net sales (hundred millions of yen)

0

50

100

150

200

FY2013 FY2014 FY2015 FY2016 FY2017

12.10

15.88

12.91

14.82

19.68

Ordinary profit (hundred millions of yen)

0

50

150

1008.63

12.74

10.95

16.29

9.21

13.71

11.30

16.83

13.68

20.36200

FY2013 FY2014 FY2015 FY2016 FY2017

Profit attributable to owners of parent (hundred millions of yen)Net income per share (yen)

0

50

150

100

115.99

136.82 139.81152.92

170.67

200

78.5592.14 94.18

103.03115.04

FY2013 FY2014 FY2015 FY2016 FY2017

Net assets (hundred millions of yen)Net assets per share (yen)

Consolidated Financial Highlights

(As of March 31, 2018)

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Akihabara UDX Building (15F), 4-14-1, Soto-Kanda, Chiyoda-ku, Tokyo 101-0021, Japanhttps://www.smcworld.com

ⓒ2018 SMC Corporation All Rights ReservedCC-18-11A版

SMC Corporation

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