-
2018
Corporate Social Responsibility Information
Digest
13F Nagoya Hirokoji Building.2-3-1 Sakae, Naka-ku, Nagoya, Aichi
460-0008, JAPAN
DAIDO METAL CO., LTD.
● Universal Design Fonts are utilized to ensure good visibility
and legibility.
[ Contacts ]● For enquires regarding environmental or safety
issues: Environmental & Safety Management Dept. TEL
81-568-61-2976 FAX 81-568-62-1361● Other CSR-related
inquiries: General Affairs Dept. TEL 81-52-205-1400 FAX 81-52-205
-1408
http://www.daidometal.com
-
■ Sales
The CSR activities of DAIDO METAL CO., LTD and some of its
affiliated companies are detailed in this report. Those activities
are based on the CSR policy specified on page 6. This report also
aims to facilitate communication with our stakeholders as well as
raising awareness of all DAIDO METAL employees.
Company Name
Established
Headquarters
Representatives
Common Stock
Sales Amount
Number of Employees(Regular Employees)
Main Business Operations
Main Domestic Production Facilities
Main Domestic Sales Offices
Affiliates
(As of 31 March 2018)
North America
Japan
Asia
ChinaEurope
DAIDO PLAIN BEARINGS CO., LTD.NDC CO., LTD.DAIDO INDUSTRIAL
BEARINGS JAPAN CO., LTD.DAIDO METAL SAGA, CO., LTD.DAIDO METAL
SALES CO., LTD.IINO MANUFACTURING CO., LTD.ATA CASTING TECHNOLOGY
JAPAN CO., LTD.
DAIDO METAL CO., LTD.
DAIDO METAL U.S.A. INC.
ISS AMERICA, INC.
NORTH AMERICAN TECHNICAL CENTER
CHUNG YUAN DAIDO CO., LTD.
EUROPEAN TECHNICAL CENTRE (UK)
DAIDO METAL EUROPE GmbH
DAIDO METAL RUSSIA LLC
DAIDO METAL CZECH s.r.o.
DAIDO METAL KOTOR ADEUROPEAN TECHNICAL CENTER
PT. DAIDO METAL INDONESIA
DAIDO PRECISION METAL (SUZHOU) CO., LTD.IINO (FOSHAN) TECHNOLOGY
CO., LTD.
BBL DAIDO PRIVATE LIMITED
DONGSUNG METAL CO., LTD.KOREA DRY BEARING CO., LTD.
DAIDO INDUSTRIAL BEARINGS EUROPE LTD.DAIDO METAL EUROPE LTD.
CHUNG YUAN DAIDO (GUANGZHOU) CO., LTD.
DAIDO METAL MEXICO S.A. DE C.V.
ISS MEXICO MANUFACTURING S.A. DE C.V.
DAIDO METAL MEXICO SALES, S.A. DE C.V.
DYNA METAL CO., LTD.
PHILIPPINE IINO CORPORATION
PT. IINO INDONESIA
ATA CASTING TECHNOLOGY CO., LTD.
CON TENTS Company Outline
(As of 31 March 2018)
Based on FY2017 results
Major Products by Business Segment (Summary of businesses /
share of sales)
Global Network
Automotive engine bearings
Summary ofbusinesses
Summary ofbusinesses
Summary ofbusinesses
Summary ofbusinesses
Summary ofbusinesses
Automotive engine bearings (for cars, trucks, race cars),
motorcycle engine bearings, engine component bearings
(turbochargers, balancers, fuel injection pumps), etc.
Half bearings Thrust washer Bearings for turbochargers
Main products
Other automotive bearings
Automotive bearings(for transmission, shock absorbers, air
conditioning compressors, steering columns)
Shock absorber bushes Starter bushes Injection
moldedbearings
Main products
Non-automotive bearings
Bearings for diesel ship engines, power generation equipment
(water mill, turbine), and industrial equipment (compressor,
acceleration/reduction gear)
Bearings for low speed diesel engines
Large marineengine bearings
Bearings forpower generators
Main products
Other automotive components
Die-cast aluminum products for automobiles, Formed pipes, Knock
pins, Numerical control (NC) machine products
Machined products
Other products2.1%
Automotiveengine bearingsOther automotive
bearings
Non-automotivebearings
Other automotivecomponents
Converter cases
Main products
Other products
Electrode sheets for electric double layer capacitor, Metallic
non-lubricated (dry) bearings, Rotary pumps for
food/beverage/cosmetics, Centralized lubrication equipment for
machine tools
Rotary pumpsCentralized lubrication equipment (MR-LUB)
Electrode sheets for electric double-layer capacitors
Main products
(Share of total sales)
Bearings for mediumand high speed diesel engines
Turbo machinerybearings(for turbines, etc.)
Dry bearings
Bearings for constructionequipment and small &medium sized
ships
Bearings forindustrial machinery
120,000
90,000
60,000
30,000
02013 2014
58,97858,978
77,350
67,269
85,015
2015
64,665
81,400
2016
63,345
85,073
2017
66,413
106,648
Policy
This report covers the activities of DAIDO METAL CO., LTD and
some of its subsidiaries.
Scope
February 2019(Next edition will be released in autumn 2019.)
Publication date
Fiscal year 2017 (April 2017 - March 2018)Some information is
updated to reflect the latest activities.
Period under review
ISO26000Ministry of the Environment’s “Environmental Reporting
Guidelines 2012”
Reference guidelines
14.6%14.6%
8.7%8.7%
13.4%13.4% 61.2%
DAIDO METAL CO., LTD.
4 November 1939
■ Nagoya Office13F Nagoya Hirokoji Building 2-3-1 Sakae,Naka-ku,
Nagoya, Aichi 460-0008, JAPAN
■ Tokyo Office17F Tennozu Central Tower 2-2-24 Higashi
Shinagawa,Shinagawa-ku, Tokyo 140-0002, JAPAN
Seigo Hanji, Chairman & Chief Executive Officer (CEO)
Kotaro Kashiyama, President & Chief Operating Officer
(COO)
JPY 7,273 million
JPY 106,648 million (Consolidated)JPY 66,413 million
(Non-consolidated)
6,728 (Consolidated)1,271 (Non-consolidated)
● Automotive engine bearings● Other automotive bearings●
Non-automotive bearings● Other automotive components● Other
products
Inuyama Factory (Located on Inuyama site)Maehara Factory
(Located on Inuyama site)Bimetal Division Plant (Located on Inuyama
site)Gifu Factory (Located in Gifu prefecture)TMBS (Turbo Machinery
Bearing Systems) Factory(Located on Inuyama site)
Tokyo Branch, Nagoya Branch, Osaka Branch, Kita Kanto Sales
Office, Hamamatsu Sales Office, Hiroshima Sales Office, Kyushu
Sales Office
● 11 domestic subsidiaries● 27 overseas affiliated companies
Company Outline Major Products by Business SegmentGlobal
Network
Message from Management
Daido Metal Group CSR Policies
Special Feature 1
Midterm Business plan 2018-2023Raise Up “Daido Spirit”Ambitious,
Innovative, Challenging
Special Feature 2
New business: Introducing eco-friendlyproducts and
technologiesOrganizational Governance
Human Rights/Labor Practices
Environment
Consumer Issues
Fair Operating Practices
Community Involvement and Development
・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 1~2・・・・・・・・・・・・・・ 3~5
・・・・・・・・・・・・・ 6
・・・・・・・・・ 7~8
・・・・ 9
・・・・・・・・・・・・・・・・・ 10・・・・・・・・ 11~13
・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
14~15・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 16
・・・・・・・・・・・・・・・・ 17~18
・・・・・・・・・・・・・・・・・・・・・・・・ 19~20
(JPY million)
(FY)
Non-consolidated Consolidated
Sales LocationsProduction Locations
R&D centers
DAIDO METAL CSR Report 2018 2DAIDO METAL CSR Report 20181
-
Introduction
The DAIDO METAL GROUP traces its history back seventy-nine years
to 1939, when the company was founded in Nagoya. On 4 November 2019
we will mark the company’s 80th anniversary.The DAIDO METAL GROUP
is the only major company in the world that specializes in
producing a full lineup of plain bearings, not only for the
automotive industry, which is our largest client sector, but also
for ships, construction equipment, general purpose machinery and
other industry sectors. The Group is also taking steps to develop
core operations in sectors other than plain bearings, with the
addition of two new consolidated subsidiaries to the DAIDO METAL
GROUP in 2017 ‒ Iino Holding Ltd. and ATA Casting Technology Japan
Co., Ltd. Global operations are expanding steadily. The DAIDO METAL
GROUP now operates 38 facilities in 15 countries worldwide.DAIDO
METAL is a global leader in the field of tribology ‒ the science
and technology of friction, wear resistance and lubrication. The
DAIDO METAL GROUP provides a multitude of advanced, top-quality
products that have earned the appreciation of customers worldwide
and helped the Group establish a strong network of business
partners. 2018 marks the 150th year since the Meiji Restoration in
Japan and the current Emperor is planning to abdicate next year, so
together with these historic milestones DAIDO METAL will be marking
its 80th anniversary in November 2019.
Results of the previous Midterm Business Plan (“Together To The
Top”) and start of the new plan (“Raise Up Daido Spirit”)
The DAIDO GROUP’s last Midterm Business Plan, entitled “Together
To The Top”, spanned the six-year period from FY2012 through
FY2017. During that period the DAIDO GROUP established solid
production and sales networks in five regions worldwide, and made
strides into new areas of business with the acquisition of
subsidiaries Iino Holding Ltd. and ATA Casting Technology Japan
Co., Ltd., in 2017. This allowed the DAIDO GROUP to surpass its
sales target for the final year of the plan. However, profits fell
short of the goals set out in the plan, due to industry slumps in
the shipbuilding and construction machinery sectors, decelerating
economic growth in emerging markets, as well as adverse exchange
rate trends and rising raw materials costs. In addition, a surge of
orders at the production facility in Mexico led to increased
personnel costs and shipping expenses, which also weighed on
profitability.After reflecting upon the results of the previous
Plan, DAIDO METAL announced its new Midterm Business Plan covering
the period from FY2018 through FY2023, entitled “Raise Up Daido
Spirit - Ambitious, Innovative, Challenging.” The Plan, which is
discussed in greater detail in the Feature section on pages 7- 8,
was drawn up with the participation of every individual in the
DAIDO METAL GROUP. The new Plan is based on a full consideration of
issues we found during the previous Midterm Business Plan period,
as well as an effort to address the risks posed by changes in the
business environment. It places an emphasis on the following four
objectives.
Action line 1
Strengthen current business lines further- True leader in
Tribology
The company aims to capture the top global market share in all
categories of plain bearings, and establish a firm business
foundation in every sector of this business. In addition to the
markets for automotive engine bearings, automotive turbocharger
bearings and bearings for large-sized marine engines, where DAIDO
METAL already holds the top global share, the company will aim to
capture the largest share of markets for bearings used in small and
medium-sized ship engines, construction equipment engines,
hydroelectric, combustion and wind power generators, and industrial
machinery bearings including polymer bearings. This objective is a
carry-over from the last Midterm Business Plan, and reflects the
Group’s continued progress towards the goal of industry
dominance.
Action line 2
Creating / fostering new business lines- Define new business
areas and foster them.
As part of its effort to “develop new core businesses to
complement the bearing business,” the DAIDO METAL GROUP added two
subsidiaries with exposure to new industry segments ‒ Iino Holding
Ltd. and ATA Casting Technology Japan Co., Ltd. For years DAIDO
METAL has been building a large network of sales channels and
business partners that can help cultivate these new businesses into
Group’s core business area. The
Group has also been steadily expanding investment in research
and development, working in close collaboration with customers and
industry-government-academic collaboration. In this way, the
company aims to develop new businesses in markets with good growth
potential. These efforts are helping the Group to address the
current paradigm shift in the automotive industry (from combustion
engines to electric and hybrid motors) while expanding its presence
in special bearings for non-automotive use, as well as entirely new
industry sectors.
Action line 3
Enhance management / operational control platforms- Strengthen
various platforms including production, IT, HR, financial
reporting.
Under the Group’s previous Midterm Business Plan it succeeded in
establishing a production and sales network in five regions
worldwide. However, in order to develop a truly solid global
organization and management structure there are still a multitude
of challenges to address. It is necessary to conduct a thorough
strategic review of all production and sales operations in the
Group for optimal global balance, strengthen global research and
development activities, and leverage the capabilities of the
“Internet of Things” (IoT) to create a new production
infrastructure. To this end, the Group will focus all efforts on
addressing these issues under the new Midterm Business Plan with
flexibility, to deal with dramatic changes in the business
environment.
Action line 4
Energetic organization with animated communication and
motivation- To develop people and organization which can adapt to
rule changes in the business.
DAIDO METAL is taking steps to promote diversity in its global
workforce in order to attract the personnel that can help the Group
take business growth to the next level. In addition to providing
education and trainings we are working to develop open and
effective communications channels and atmosphere to invigorate the
organization and promoting an environment in which all employees
can actively discuss the issues that affect our future growth, all
personnel enjoy a healthy balance between work and their personal
life.
Promote CSR activities as a central management issue
As stated in the DAIDO METAL GROUP CSR Policies, the Group, as a
responsible corporate citizen, continues to serve the society
through its business, and strives to be a trustworthy partner with
customers, shareholders, employees, business partners and the
communities in which we operate, with our high standard of
compliance and the contribution to the community. The Group
develops new products and new materials that are energy-efficient
and environmentally friendly. Furthermore, DAIDO METAL is
constantly working to improve the product quality globally.The
Group promotes sales of its environment-friendly products through
various trade shows and PR activities. We are steadily reducing CO2
emissions, energy consumption and industrial waste in our global
production network, and are engaged in ongoing environmental risk
management activities. The Group’s communications with stakeholders
include
numerous IR events mainly in Kanto and Tokai area. DAIDO METAL
takes an active role in community activities in the towns where
production facilities are located. For example, we hold a summer
festival for residents of Inuyama and co-sponsor the “Fureai Trio
Concert,” and hold many factory tours. We will continue seeking
opportunities to build ties with the local community.In the Midterm
Business plan that begins in FY2018, the Group placed an importance
on ESG (Environment, Society, Governance) management as a key
driver to increase corporate value. There is huge potential in the
field of Environment. There are many aspects in the field of
Society, and we aim to create a working environment and structure
where each employee can realize their potentials, promoting
diversity in the workplace and better working hour management. In
the Governance area, we continue to observe compliance
requirements, and review our governance structure in view of new
Corporate Governance Code. In this way, we promote and strengthen
each element of our CSR activities.
Increasing corporate value over the longer term with the
concerted effort of the Group
In September 2018 the company made a public offering which
brought in additional capital from many investors. To meet the
expectations of shareholders and other Group stakeholders, the
entire DAIDO METAL GROUP needs to work in concert to increase
corporate value over the mid-long term. Naturally, given the
rapidly changing business environment in which we operate, it is
necessary to redouble efforts to enhance our profitability. It is
also essential that we increase disclosure of our nonfinancial
accomplishments and the Group’s efforts in the “ESG” arena to
provide our stakeholders with a full and accurate picture of our
corporate value. We trust that these efforts will earn the
confidence and continued support among our stakeholders.
Message from Management
Every member of the DAIDO METAL GROUP has a role to play in the
new Midterm Business Planentitled “Raise Up Daido Spirit”, to help
elevate corporate value and contribute to sustainable growth.Seigo
Hanji Chairman &
Chief Executive Officer (CEO)
DAIDO METAL CSR Report 2018 4DAIDO METAL CSR Report 20183
-
Introduction
The DAIDO METAL GROUP traces its history back seventy-nine years
to 1939, when the company was founded in Nagoya. On 4 November 2019
we will mark the company’s 80th anniversary.The DAIDO METAL GROUP
is the only major company in the world that specializes in
producing a full lineup of plain bearings, not only for the
automotive industry, which is our largest client sector, but also
for ships, construction equipment, general purpose machinery and
other industry sectors. The Group is also taking steps to develop
core operations in sectors other than plain bearings, with the
addition of two new consolidated subsidiaries to the DAIDO METAL
GROUP in 2017 ‒ Iino Holding Ltd. and ATA Casting Technology Japan
Co., Ltd. Global operations are expanding steadily. The DAIDO METAL
GROUP now operates 38 facilities in 15 countries worldwide.DAIDO
METAL is a global leader in the field of tribology ‒ the science
and technology of friction, wear resistance and lubrication. The
DAIDO METAL GROUP provides a multitude of advanced, top-quality
products that have earned the appreciation of customers worldwide
and helped the Group establish a strong network of business
partners. 2018 marks the 150th year since the Meiji Restoration in
Japan and the current Emperor is planning to abdicate next year, so
together with these historic milestones DAIDO METAL will be marking
its 80th anniversary in November 2019.
Results of the previous Midterm Business Plan (“Together To The
Top”) and start of the new plan (“Raise Up Daido Spirit”)
The DAIDO GROUP’s last Midterm Business Plan, entitled “Together
To The Top”, spanned the six-year period from FY2012 through
FY2017. During that period the DAIDO GROUP established solid
production and sales networks in five regions worldwide, and made
strides into new areas of business with the acquisition of
subsidiaries Iino Holding Ltd. and ATA Casting Technology Japan
Co., Ltd., in 2017. This allowed the DAIDO GROUP to surpass its
sales target for the final year of the plan. However, profits fell
short of the goals set out in the plan, due to industry slumps in
the shipbuilding and construction machinery sectors, decelerating
economic growth in emerging markets, as well as adverse exchange
rate trends and rising raw materials costs. In addition, a surge of
orders at the production facility in Mexico led to increased
personnel costs and shipping expenses, which also weighed on
profitability.After reflecting upon the results of the previous
Plan, DAIDO METAL announced its new Midterm Business Plan covering
the period from FY2018 through FY2023, entitled “Raise Up Daido
Spirit - Ambitious, Innovative, Challenging.” The Plan, which is
discussed in greater detail in the Feature section on pages 7- 8,
was drawn up with the participation of every individual in the
DAIDO METAL GROUP. The new Plan is based on a full consideration of
issues we found during the previous Midterm Business Plan period,
as well as an effort to address the risks posed by changes in the
business environment. It places an emphasis on the following four
objectives.
Action line 1
Strengthen current business lines further- True leader in
Tribology
The company aims to capture the top global market share in all
categories of plain bearings, and establish a firm business
foundation in every sector of this business. In addition to the
markets for automotive engine bearings, automotive turbocharger
bearings and bearings for large-sized marine engines, where DAIDO
METAL already holds the top global share, the company will aim to
capture the largest share of markets for bearings used in small and
medium-sized ship engines, construction equipment engines,
hydroelectric, combustion and wind power generators, and industrial
machinery bearings including polymer bearings. This objective is a
carry-over from the last Midterm Business Plan, and reflects the
Group’s continued progress towards the goal of industry
dominance.
Action line 2
Creating / fostering new business lines- Define new business
areas and foster them.
As part of its effort to “develop new core businesses to
complement the bearing business,” the DAIDO METAL GROUP added two
subsidiaries with exposure to new industry segments ‒ Iino Holding
Ltd. and ATA Casting Technology Japan Co., Ltd. For years DAIDO
METAL has been building a large network of sales channels and
business partners that can help cultivate these new businesses into
Group’s core business area. The
Group has also been steadily expanding investment in research
and development, working in close collaboration with customers and
industry-government-academic collaboration. In this way, the
company aims to develop new businesses in markets with good growth
potential. These efforts are helping the Group to address the
current paradigm shift in the automotive industry (from combustion
engines to electric and hybrid motors) while expanding its presence
in special bearings for non-automotive use, as well as entirely new
industry sectors.
Action line 3
Enhance management / operational control platforms- Strengthen
various platforms including production, IT, HR, financial
reporting.
Under the Group’s previous Midterm Business Plan it succeeded in
establishing a production and sales network in five regions
worldwide. However, in order to develop a truly solid global
organization and management structure there are still a multitude
of challenges to address. It is necessary to conduct a thorough
strategic review of all production and sales operations in the
Group for optimal global balance, strengthen global research and
development activities, and leverage the capabilities of the
“Internet of Things” (IoT) to create a new production
infrastructure. To this end, the Group will focus all efforts on
addressing these issues under the new Midterm Business Plan with
flexibility, to deal with dramatic changes in the business
environment.
Action line 4
Energetic organization with animated communication and
motivation- To develop people and organization which can adapt to
rule changes in the business.
DAIDO METAL is taking steps to promote diversity in its global
workforce in order to attract the personnel that can help the Group
take business growth to the next level. In addition to providing
education and trainings we are working to develop open and
effective communications channels and atmosphere to invigorate the
organization and promoting an environment in which all employees
can actively discuss the issues that affect our future growth, all
personnel enjoy a healthy balance between work and their personal
life.
Promote CSR activities as a central management issue
As stated in the DAIDO METAL GROUP CSR Policies, the Group, as a
responsible corporate citizen, continues to serve the society
through its business, and strives to be a trustworthy partner with
customers, shareholders, employees, business partners and the
communities in which we operate, with our high standard of
compliance and the contribution to the community. The Group
develops new products and new materials that are energy-efficient
and environmentally friendly. Furthermore, DAIDO METAL is
constantly working to improve the product quality globally.The
Group promotes sales of its environment-friendly products through
various trade shows and PR activities. We are steadily reducing CO2
emissions, energy consumption and industrial waste in our global
production network, and are engaged in ongoing environmental risk
management activities. The Group’s communications with stakeholders
include
numerous IR events mainly in Kanto and Tokai area. DAIDO METAL
takes an active role in community activities in the towns where
production facilities are located. For example, we hold a summer
festival for residents of Inuyama and co-sponsor the “Fureai Trio
Concert,” and hold many factory tours. We will continue seeking
opportunities to build ties with the local community.In the Midterm
Business plan that begins in FY2018, the Group placed an importance
on ESG (Environment, Society, Governance) management as a key
driver to increase corporate value. There is huge potential in the
field of Environment. There are many aspects in the field of
Society, and we aim to create a working environment and structure
where each employee can realize their potentials, promoting
diversity in the workplace and better working hour management. In
the Governance area, we continue to observe compliance
requirements, and review our governance structure in view of new
Corporate Governance Code. In this way, we promote and strengthen
each element of our CSR activities.
Increasing corporate value over the longer term with the
concerted effort of the Group
In September 2018 the company made a public offering which
brought in additional capital from many investors. To meet the
expectations of shareholders and other Group stakeholders, the
entire DAIDO METAL GROUP needs to work in concert to increase
corporate value over the mid-long term. Naturally, given the
rapidly changing business environment in which we operate, it is
necessary to redouble efforts to enhance our profitability. It is
also essential that we increase disclosure of our nonfinancial
accomplishments and the Group’s efforts in the “ESG” arena to
provide our stakeholders with a full and accurate picture of our
corporate value. We trust that these efforts will earn the
confidence and continued support among our stakeholders.
Interview with Management
The DAIDO METAL GROUP’s as a responsible corporate citizen,
continues to serve the society through its business, and strives to
be a trustworthy partner with customers, share-holders, employees,
business partners and the communities in which we operate, with our
high standard of compliance and the contribution to the community.
To meet the above objectives, the DAIDO METAL GROUP has introduced
a multitude of programs and activities which cultivate the
qualities of self-discipline, self-cor-rection, creativity and
responsibility in every employee or executive officer, under the
slogan: “Self-discipline, Self-correction and Creativity.”
DAIDO METAL GROUP’s Approach to CSR
DAIDO METAL GROUPCSR Policies
Increase awareness of theDAIDO METAL GROUP’s rolein society
while increasing
corporate value
Cultivating Self-discipline,Self-correction and
Creativity
Contribute tosociety as a
manufacturer throughcorporate activities
Comply with allpertinent laws andregulations anddemonstrate
responsibility throughactive contributions
to society
Our Corporate Philosophy Our Principles
1.
We hold ourselves responsible for the happiness of everyone in
our organization and the contributions we make to global
society.
2.
We will create a vigorous and open-minded corporate culture
through diligent self-discipline and ethical behavior.
3.
We will learn from our markets, respond to our customers'
requirements, and surpass our customers' expectations.
4.We will devote ourselves to creation, innovation,and the
realization of dreams.
5.
We will strive to be the world leader in tribology through
constant technical improvement, development, and innovation.
1. We will always approach business from a global
perspective.
2. We will always attend to the needs and desires of our
customers.
3. We will continue to recognize the importance of the
environment.
4. We will continue to value individuality and work to achieve
synergy between people.
5. We will always remain open to new ideas and proposals.
6. We will always respond with speed and agility.
OurDuty
OurResolve
OurFoundation
OurApproach
OurObjective
DAIDO METAL CSR Report 2018 6DAIDO METAL CSR Report 20185
-
SpecialFeature
1
Midterm Business Plan 2018-2023Raise Up “Daido Spirit”*
Ambitious, Innovative, Challenging
The DAIDO METAL GROUP’s Midterm Business Plan, which commences
in FY2018, aims to accelerate business activity and enhance
corporate value.
New Midterm Business Plan ‒ Four cornerstones
Our Corporate Philosophy1. Our Duty2. Our Resolve3. Our
Foundation4. Our Approach5. Our Objective
We hold ourselves responsible for the happiness of everyone in
our organization and the contributions we make to global
society.
We will create a vigorous and open-minded corporate culture
through diligent self-discipline and ethical behavior.
We will learn from our markets, respond to our customers'
requirements, and surpass our customers' expectations.
We will devote ourselves to creation, innovation, and the
realization of dreams.
We will strive to be the world leader in tribology through
constant technical improvement, development, and innovation.
● The measures adopted under the new Mid-Term Plan will continue
to promote this basic philosophy while seeking to enhance corporate
value and raise the Group’s global profile.● As noted in the
Group’s corporate philosophy, employees are the driving force
behind the Group’s development, and they will play an even more
vital role in the future as the Group strives to contribute to
global society.
● Sales activities to attract new customers, improve
functionality and price competitiveness of products and increase
and global market share ● Improve capacity utilization rate, and
scrap rate, production yield to enhance profitability ● Revamp
production process with introduction of IoT (internet of things),
leading to a reduction of stock / work-in-progress and improvement
profitability ● Other actions to improve efficiencies in production
and business operations through BPR (Business Process
Re-engineering) activities lead by the BPR Department
● Operations in automotive engine bearings; growth opportunities
in China, India etc. ● Target non-Japanese car & truck
manufacturers and non-Japanese turbocharger companies
Raise Up“Daido Spirit” Ambitious, Innovative, Challenging
A momentous six-year plan tofurther elevate the spirit of the
Group
“Ambitious”, “Innovative” and “Challenging” are three adjectives
that describe the elements of the Daido Spirit which carried the
Group to its current success, We will re-raise our Spirit even
higher to make this six years a period of a great step forward. The
first letters of these words have been combined in the acronym
“AICH”, which comes from the place where company started its
business ‒ Aichi Prefecture. The “AI” is also an acronym for
artificial intelligence, as well as a Japanese word that means
“love.” By combining artificial intelligence with human compassion
and wisdom, the company aims to achieve even greater success.
Ambitious Innovative Challenging*
Elevating corporate value through ESG efforts
[Perfect] [Prepare] [Expand] [Cultivate] [Challenge]Raise Up
“Daido Spirit”*~ Ambitious, Innovative, Challenging~
*The action plans adopted to achieve these “four cornerstones”
are outlined on the next page.
Action line 1: Action line 2: Action line 3: Action line 4:
Strengthencurrent businesslines further
Creating /fosteringnew business lines
Enhance management /operationalcontrol platforms
Energetic organization withanimated communicationand
motivation
- True leader in Tribology
- Define new business areas and foster them.
- Strengthen various platforms including production, IT, HR,
financial reporting.
- To develop people and organization which can adapt to rule
changes in the business.
Strengthen current business lines further
Action plans for each of the Four cornerstones
- True leader in Tribology
● Investment in R&D (increase investment in “seeds” R&D,
on top of “needs”) ● Set up “Future Creation” department in charge
of research into new business areas ● Seek possibility of
non-organic growth into new business areas through M&A ● Start
production of aluminum die cast parts for EVs at our new subsidiary
in Thailand (DM Casting Technology (Thailand) Co., Ltd.) (Due to
commence in February 2020)● Assess investment opportunity to
produce special type of bearings for wind power turbines (both
off-shore and on-shore) in Europe (Prototype models completed;
local production could begin by 2021)● Further realization of
synergy with the Iino Group and the ACJ/ACT Group, sales promotion
of “CALME” (sound absorbing material - product of NDC Co.,
Ltd.)
Creating / fostering new business lines- Define new business
areas and foster them.
Actionline 1
● Implement global quality assurance program optimized global
production and sales structure ● Set up Technical Center (TC) in
China and have global technology service network with TCs in the
UK, Germany, Czech Republic, the US, and in China. ● Set up
European Technology Division and R&D Center in Germany
(expected in 2023) ● Enhance global governance/compliance mechanism
encompassing all Group companies ● Introduce Global HR policies,
promote diversity to attract a wide variety of talent
Enhance management / operational control platforms- Strengthen
various platforms including production, IT, HR, financial
reporting.
● Improve skill and ability of each employee and activate
communication to enhance team performance that is more than the sum
of each individual’s performance ● Change the corporate culture to
support the entre/intrapreneurship ● Promote a work-life balance
with reduced working hours, flexible working time and location
Energetic organization with animated communication and
motivation- To develop people and organization which can adapt to
rule changes in the business.
Specific objectives
Actionline 2
Actionline 3
Actionline 4
DAIDO METAL CSR Report 2018 8DAIDO METAL CSR Report 20187
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First appearance at Nikkei IR and Investment Fair 2017 (Held at
Tokyo Big Sight on August 25-26, 2017)
Financial Results Meeting for the year endied March 2018 (May
16, 2018 at the Asahi Seimei Otemachi Building)
Active material layer
Bonding layer
Current collector layer (aluminum foil)
Structure of the electrode sheet
EPS DC-DC converter installed on HV battery
Steering components Steering components
DC-DC Converter
SAE Certificate of Appreciation Presenter: Kenji Nimura,
Research & Development Department, Technology Division
■ Corporate Governance Structure (As of 1 July 2018)
Auditors(3 members including 2 from outside the company)
Auditing
Selects and dismisses Board members
Proposals
Advice
Reporting
Board of Auditors
Auditing Center(internal auditing activities)
Corporate auditors(accounting auditor)
(Reports directly to the President & COO)
Corporate GovernanceCommittee
The Corporate ComplianceCommittee
Risk ManagementCommittee
Advisory Board(4 members)
Auditing
Auditing
CooperationCooperation
Cooperation
Termination
Selection
Decisions on theappointment ortermination ofcorporate
auditors
Shareholders Meeting
Suggestionson how tomanageoperations
Instructions
Reporting onoperatingactivities
Reporting
• Director and Senior Managing Executive Officer (2 members)•
Managing Executive Officer (5 members)• Senior Executive Officer (3
members)• Executive Officer (7 members)
Individual operating divisions and branches
Board Members(4 members including at least 2 from outside the
company)
Board of Directors
• Chairman & Chief Executive Officer (CEO)• President &
Chief Operating Officer (COO)
Chief Representative Officers (2 members)
Management Strategy Council
Management of operations
Selection orterminationNonreappointment
Selected from amongBoard members,
executive officers and managers
Composed of two internal membersand two external members
The company is actively involved in IR activities to promote
better communication with investors and to achieve sustainable
growth in corporate value.
First participation in the Nikkei IR and Investment Fair (at
Tokyo Big Sight) in FY2017In FY2016 the company participated in the
NSE IR Seminar in Tokyo, and in FY2017 it had a presentation booth
at the Nikkei IR and Investment Fair, held at Tokyo Big Sight. The
DAIDO METAL GROUP intends to expand its participation in IR events
and to communicate direct-ly with investors.
Financial results presentations to institutional investors in
Tokyo, with presentation materials andQAs provided on the Company’s
Website (as required by fair disclosure rules)
The DAIDO METAL GROUP held financial results explanatory
sessions for institutional investors for the second-quarter and the
full fiscal year. The Chairman gave an explanation of our business
operations, a summary of financial results and the results of the
previous Midterm Business Plan,
as well as an overview of the new Midterm Business Plan.
Starting this year, as require by Japan’s Fair Disclosure Rules,
presentation materials and Question and Answers were posted on the
Company Website. This will help our stakeholders to understand
better our Group’s business condition and activities.
Investor Relations (IR) Activities
Corporate Governance Structure
ATA Casting Technology Japan Co., Ltd., a new Group subsidiary,
produces die-cast aluminum automotive parts at its Thai subsidiary.
The company handles all phases of the production process, from
aluminum smelting and casting to processing, inspection and
shipment. The company’s high technology is recognized by many
clients in the automobile and auto parts industries. In the past,
the company concentrated mainly on engine and steering column
components, but it is now focusing its energies on the emerging
market for electric vehicles in the hope of dramatically expanding
its product range and market dramatically.
The company’s electrode sheets are marketed under the brand name
“DEL ECO.” These are used in the positive electrode (cathode) of
lithium ion batteries, and both the anode and cathode of electric
double-layer capacitors. A layer of activated carbon is deposited
on aluminum foil to give these electrode sheets particularly high
density, accuracy, durability and reliability. The products were
developed using the molding, rolling and bonding technology which
the company uses in the mass production of bearings used by the
automotive, marine and general industrial equipment industries.
Applications for these products include smart meters, automobile
“drive recorders”, hybrid automobiles, electric vehicles and
equipment used for renewable energy sources.
Product characteristics● Products are manufactured using the
molding, and roll bonding technology DAIDO METAL developed for
bearing production. This method gives the sheets 8-20% higher
density* than electrodes manufactured using coating technology
(*based on in-house company comparisons).
● As the high-density layer can be produced to any thickness the
electrode’s capacity can be adjusted to the optimal level for each
application.
● Material composition can also be adjusted with considerable
freedom, making it possible to increase the content of active
materials.
● The manufacturing process is carefully controlled to eliminate
impurities, giving these products superior durability.
Electrode sheets for electric double-layer capacitors
Die-cast aluminum automotive parts
The Society of Auto Engineers (SAE) held its annual World
Congress in the US on 10 -12 April. At this convention, a DAIDO
METAL engineer made a presentation on the results of their research
and development activities, entitled “Development of Polymer
Overlay Bearing Material for Recent Automotive Engine.”
“I was very nervous about presenting a report on our research
results to a large international congress, but it was a truly
memorable experience. I look forward to discussing our results
again, to people both in Japan and worldwide.”
Presentation of new research activities
Comments from the presenters
New business: Introducing eco-friendlyproducts and
technologies
As a world leader in the field of tribology the DAIDO METAL
GROUP is using its technological skills to contribute to society as
a whole. Product development activities focus on “reducing
substances that adversely impact the environment” and “developing
products that can contribute to global society.” In this section we
will look at some of the products the company has developed to
benefit the environment.
2
SpecialFeature Organizational Governance
[Corporate Governance]
The DAIDO METAL GROUP has adopted a Board of Directors structure
as part of the continuing effort to earn the trust of shareholders,
customers, employees and other stakeholders, by pursuing a future
of sustainable growth and endeavoring to improve corporate value
over the medium and long term. An executive officer system has been
introduced in order to further elevate management efficacy, and the
company has appointed board members from outside the company in an
effort to ensure transparency, fairness and propriety. These
external
directors perform an oversight function to monitor business
management, and external auditors have been appointed to strengthen
the Group’s auditing functions.The DAIDO METAL GROUP has
established a Corporate Governance Committee, which will take
responsibility for setting basic governance policies for the entire
Group. In addition, it will seek ways to improve and implement the
feasibility evaluation system introduced by the Board of
Directors.The Group’s basic stance on and approach to governance is
described in detail in the Corporate Governance Report, issued in
July 2018.
Org
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DAIDO METAL CSR Report 2018 10DAIDO METAL CSR Report 20189
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(%)
(FY)2013 2014 2015
35
30
25
20
(People)
2932 31 30
2.0
1.5
1.0
0
1.8
2.07 2.21 2.02 2.01
2016
Government statutory target levelNumber of employeesPercentage
of work force
32
2.24
2017
Presentation of Overseas Short-term Study Abroad System for
Language Study experiences
A management training program
Workstyle poster
■ Daido Metal Training Structure
Position-specific Training Daido Metal College CoursesGlobal
DivisionManagers
Top Managementlevel
DepartmentalManagers
ExperiencedEmployees
GeneralEmployees
Newly HiredEmployees
Departmental Manager training
Management program
Self-improvement training
Training for third-yearemployees
Training forsecond -year employees
Selective training
Executive Officer training
Overseas riskmanagement seminars
Global productiontraining
Management training priorto overseas secondment
Overseas Short-term StudyAbroad System forLanguage Study
Follow-up training fornewly hired employees
Training program fornewly hired employees
Technical instruction
Entry-level course
Mid-level course
Training for Supervisorcandidates I
Training for Supervisorcandidates II
International p
ersonn
el develo
pm
ent system2016 (FY)2013 2014 2015
25
20
15
10
5
0
(People)
1815
1815
8888
77
7777
2211
99 771010
2017
23
1111
11
1111
Employees taking child care leave (Women)Employees taking
prenatal/postnatal leave (Women)
Employees taking child care leave (Men)
Work-life balance● Measures to encourage female
employees’participationIn response to the Act on the Promotion of
Women’s Participation and Advancement in the workplace, DAIDO METAL
developed an action plan aimed at increasing the number of women in
our workforce, and took steps to increase awareness of programs
that address issues such as maternity and nursing care leave. Among
the achievements of this plan to date the company developed a web
page aimed specifically at attracting female graduates and held
events for prospective employees aimed at attracting a larger
percentage of women to the workforce. A handbook was prepared
describing the programs that the DAIDO METAL GROUP has in place for
maternity leave and nursing care leave to make it easier for
employees to participate in these programs. The Group aims to
expand and strengthen these activities going forward, with the goal
of providing a stimulating work environment for not only women, but
for all employees.
● Conditions of child care leave programThe company is
continuing to seek new ways to improve the working environment to
help parents balance work and child-rearing commitments. During
FY2017 23 employees took either prenatal/postnatal leave or child
care leave, with child care leave for fathers continuing as an
ongoing annual program.The company has taken steps to raise
awareness of child care and nursing care leave programs not only
for female employees, but for men as well. Over 78% of fathers
whose partner gave birth took advantage of the two days paternity
leave accorded to new fathers.
Employee Training ProgramsA variety of training and learning
opportunities - including global study experiences - are provided
to employees at
each level of responsibility and each stage of their career, to
ensure that they develop the skills they need and are aware of
their roles in the company. Daido Metal College is a special
training facility which continuously provides training by passing
on knowledge, technology and skills accumulated by the company.
● Employing workers with disabilitiesDAIDO METAL is very
proactive in employing individuals with disabilities.
● Acceptance of interns from overseasDaido Metal provides a
“Technical Internship System for Overseas Personnel” which accepts
technical interns from foreign countries every year. Currently,
roughly 20 interns are striving to acquire expertise, technical
skills, and know-how from Japan, so that they may contribute to the
growth of expertise and technical skill in their own countries.
● Work Style Reform“Work Style Reform” refers to the ongoing
effort to revise working conditions to allow people to achieve a
healthy balance between their jobs and personal life. For example,
the company plays music at the end of the day on “no overtime day”
so that employees can feel free to leave work on time. Posters are
displayed at all offices to ensure that all employees share the
same objectives. Year by year, employees have been taking a larger
percentage of their permissible paid vacation days.
● Global training introducedIn 2016, in an effort to accelerate
the globalization of the DAIDO METAL GROUP, a program was
introduced for employ-ees who are selected for their potential to
work in international roles, known as the “Overseas Short-term
Study Abroad System for Language Study.” Meanwhile, management
personnel at overseas affiliated companies continue to receive
training aimed at giving them the necessary proficiency in
management, financial and person-nel-related issues and safety risk
management.
● Management Training ProgramsA 360 degree management training
program has been developed on the basis of a comprehensive survey
of each employee’s superiors, colleagues and subordinates, with the
goal of developing manage-ment skills and stimulating
organizational energy. In this way, the company hopes to continue
to improve the organizational skills and unlock the poten-tial of
managers.
Personnel Training Promoting Diversity
Human Rights/Labor PracticesPersonnel training and working
conditions
Company policy on human rightsDaido Metal’s policy on human
rights is set out in the “Performance Standards” for the Daido
Metal Group.All employees are expected to understand this policy
and apply it in all company activities.
Respect for Human Rights・We maintain accepted moral standards
and a high standard of ethics. We comply with labor laws and
conform to rules. We respect individuals, do not discriminate
against others, strive to be considerate to others and improve the
working environment and human relations.・We respect one another’s
personal privacy and do not infringe on human rights through
discrimination for reasons of race, skin color, beliefs,
nationality, gender, sex, national origin, religion, physical
appearance, disability or language. We will not tolerate any form
of sexual harassment or abuse of power.
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DAIDO METAL CSR Report 2018 12DAIDO METAL CSR Report 201811
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Certificate number:JQA-OH0045
Employees of a domestic affiliated company listening to a safety
demonstration
1st placed in the Safety photoScene at management and employee
patrol
Spot air conditioners introduced at the Gifu Factory
Air conditioning system at plant
Heat-blocking coating (Inuyama site office)
Before conversion After conversion
Diagram of lighting● Mercury vapor lamp ○ LED lamp
50,000
45,000
40,000
35,000
30,000
( t )650
600
550
500
450
(g-CO2 /thousand JPY)
Emissions per unit of productionCO2 emissions■ Trends in CO2
emissions
(FY)20152013 2014
* CO2 emissions volume is calculated using the methodology
provided by the “Energy Saving Act” which can change from year to
year.
633.3618.8618.8
40.91340.91340,35740,35743,01843,018
609.3609.3
2016
591.4591.4
37,98737,987
2017
564.3564.3
38,34038,340
OHSAS18001 CertificationDAIDO METAL has adopted a management
philosophy that places great emphasis on people. Accordingly, the
company pursues employee safety policies aimed at completely
eliminating workplace accidents. The company’s domestic production
facilities have been certified as compliant with the global
standards set for management systems under OHSAS.The company has
continuously complied with these standards since 2003. In June 2017
our domestic affiliates Daido Plain Bearings and Daido Industrial
Bearings Japan were organized as one single company site, expanding
the scope of certification.
Implementing “Safety Week”at all Domestic PlantsCooperation
between management and the workforce to address risk
Over the course of the year, inspections are conducted in areas
where there is a danger that equipment can cause cuts or pinch
injuries. In addition, a nationwide “Safety Week” is observed in
July of each year, in which management and employees confirm that
safety procedures are being carried out properly.All employees take
part in the events by composing safety slogans, making safety photo
and competing for safety commendations, thus raising awareness
of
safety issues. In addition, a “Sanitation and Health Week” is
observed in October, during which management and employees confirm
disaster preparedness, practice the proper use of dangerous
materials and strengthen disaster prevention measures.
Affiliated companies conduct experientiallearning to raise
safety awarenessDAIDO METAL’s safety training program is provided
to all employees upon joining the company, and supervisors receive
follow-up training on an ongoing basis. This training not only
includes classroom lectures but also hands-on practice in safe
operations. From FY2018, all domestic affiliated companies
(including NDC Co., Ltd.) have installed demonstration equipment at
each site so that employees can receive practical safety
instruction on-site, and thus increase awareness of safety at all
locations.
Safety-related Activities Promoting environmental management
systems
Efforts to the Prevent Global Warming
Human Rights/Labur PracticesPersonnel training and working
conditions
Fundamental Policy on Health and SafetyBased on its
people-oriented management philosophy,DAIDO METAL does its utmost
to protect the health andsafety of its valued employees.
Maintaining high levels ofemployee safety is a top company
priority, and the companyinvests whatever management resources are
required tomaintain the highest possible levels of safety.
Operations covered byOHSAS18001 certification
Scope of certification
• Inuyama Factory• Maehara Factory• TMBS Factory• No.4 Company•
Bimetal Division• Environmental & Safety Management Dept.• Gifu
Factory• Daido Plain Bearings Co., Ltd.• Daido Industrial Bearings
Japan Co., Ltd.
Environment
Reducing Energy ConsumptionThe Group does its utmost to combat
the risk of climate change and make the most efficient use of
natural resources, promoting activities to cut power
consumption. The company aimed to“ emit less CO2 than in 2016”
in 2017 and due to energy saving measures and a reduction in
production values was able to limit emissions to 38,340 tons which
was down 0.9% from 2016. Also, one key measure of energy efficiency
- CO2/1000JPY of sales - showed a decrease of 5.8% in 2016 to
564.33g.This mainly reflected the reduction of energy usage
associated with production transfers.
Energy reduction activities at company site offices● Insulation
measuresIn the summer the hot sun shining on the rooftop of a
factory building raises the temperature and makes air conditioning
less efficient. However, heat-blocking coatings on the roof can
prevent the temperature inside from rising as much, and reduce the
burden on air conditioning systems. In FY2017 the company finished
placing insulation coatings on two buildings.
● Switching to LED lightsFactories that have switched to LEDs
for interior lighting were inspected to determine the brightness
and angle of illumination. The results prompted the company to
adjust the layout of light fixtures and reduce the total number of
light bulbs. As a result the introduction of LED lighting has
greatly reduced electric power consumption.
●“Spot”air conditioning introduced in factoriesOlder air
conditioning systems in factories are being replaced with new
energy-conserving systems and workers are taking care to conserve
energy.
Daido Metal Group Environmental Policy
Fundamental philosophyDaido Metal Group views the global
environment as a precious resource for all people to share, and
considers protection of the environment to be one of the most
important issues facing mankind. The company will focus all of its
efforts and technology on preserving the environment.
Fundamental policies1) The Daido Metal Group will fulfil its
responsibility to preserve the global environment, while observing
all relevant laws and regulations.
2) The entire Group will take steps to address environmental
issues and strengthen environmental management.
3) In all work activities, comprehensive efforts will be made to
reduce energy consumption and use of materials, recycle materials,
and reduce industrial waste to a minimum.
4) Through the development of products and technologies, the
Group will employ its overall technical abilities in an effort to
preserve and clean up the environment.
5) The Group will take active steps to inform customers, the
local community and other related parties of its efforts to
preserve the environment, and promote communication regarding the
issue.
6) Through environmental education and informative activities,
the Group will seek to boost environmental awareness among all
employees, and encourage them to take it upon themselves to
participate in environment-related activities.
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DAIDO METAL CSR Report 2018 14DAIDO METAL CSR Report 201813
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Management and DQC circle participants Scene at presentation
Display at the 21st annual Mechanical Components and Materials
Tech Expo (at Tokyo Big Sight)
Display of products made by Group affiliated companies
The DAIDO METAL display booth
Eye-catching displays included a cutout model of an eight-speed
automatic transmission and a simulator demonstrating the effect
ofCALME sound absorption material
River cleanup activitiesMayor of Inuyama City (third from left)
presents the award to a company employee (second from right)
Group Project award received by the “green curtain”
View of the “green curtain”from inside the site office
■ Trends in generation of industrial waste( t )
(FY)20152013 2014
2,381 2,425 2,486
2016
2,200
2017
1,931
3,000
2,000
1,000
0Picture of a night-time disaster drill (22 May 2017)
Reducing industrial waste withcutting lubricant filtration
equipment Night-time disaster drill
(simulating a spill caused by an earthquake)
Quality Control (QC) policy for FY2017The company’s QC policy
was developed to raise the initiative and self-reliance of company
employees, and measures are being implemented based on the FY2017
slogan “Using the philosophy of the “Three Gen’s”(*) to deliver
customer satisfaction and security, while applying the PDCA cycle
to prevent problems from recurring.” This motto reflects the
company’s dedication to improving quality.
The 32nd DQC Circle Convention to promote QC Circle
activities/“Quality ImprovementMonth” activitiesOn 11 December 2017
the DQC Circle Convention was held by nine circles selected from
domestic production bases, as well as circles invited from overseas
affiliated companies. This event is an opportunity to spread
quality improvement activities throughout the entire DAIDO METAL
GROUP, to energize workplaces, and to promote enhancements to
improvement ability. During Quality Improvement Month (November),
the Quality Control Division conducts activities whereby employees
contribute slogans and posters to raise awareness of product
quality issues throughout the company.
Introducing quality control at overseas affiliatesQuality
Control personnel from domestic factories are being dispatched to
overseas affiliated companies to help them introduce compre-hensive
quality control standards. Standardizing production process-es and
observing quality standards helps ensure that the entire Group
maintains a consistent level of product quality. By sharing
quality
concerns and elevating awareness the Group is contributing to a
higher level of product quality.
Participation in the 45th annual Tokyo Motor Show 2017 ‒
displaying products made by DAIDO METAL and other Group
subsidiaries (NDC, Iino Mfg., ACT)
The 45th annual Tokyo Motor Show 2017 took place at Tokyo Big
Sight on 27 October to 5 November 2017. Some 153 domestic and
overseas corporations held exhibitions at this event. DAIDO METAL’s
display employed eight video monitors to introduce a multitude of
Group products, as well as cutout models of new products such as an
eight-speed automatic transmission and shock absorbers. There was
also a display of NDC’s sound absorption plate material, CALME. The
exhibit attracted considerable interest from visitors and helped
boost the profile of DAIDO METAL and its Group affiliated
companies.
Mechanical Components and Materials Tech Expo (M-Tech) Joint
display by company divisions and Daido Metal Sales Co., Ltd.
The DAIDO METAL GROUP took part in Nagoya Mechanical Components
and Materials Tech Expo, held on 12 -14 April and Mechanical
Components and Materials Tech Expo (M-Tech), on 21- 23 June 2017. A
joint display by the DAIDO METAL GROUP’s company divisions and
Daido Metal Sales Co., Ltd. included traditional products such as
the dry bearing series, metallic bearings, die slides, thermalloys
and others, as well as a broad assortment of products from
automotive half shell bearings and RP pumps to NDC’s sound
absorption plate material, CALME, pipes and knock pins made by Iino
Manufacturing and die-cast products made by ACT Casting Technology
Japan.
Serving CustomersAmong the production facilities operated by
DAIDO METAL, plating and processing plants produce the largest
volume of industrial waste. In FY2017 DAIDO METAL was able to
reduce the volume of plating wastewater generated and also began
reusing lubricant and solvents to cut down on the amount of waste
generated. The Group will continue seeking opportunities to reduce
waste and make operations more environmentally sensitive,
implementing plans that can make even minor reductions to the
amount of waste generated.
Efforts to reduce industrial waste
●“Green curtain”installation (Recipient of the Inuyama
City“green curtain”contest award)Greenspace has been created at
many of the Group’s factories and offices including the Inuyama
Site Office, where a structure was built on the south side of the
facility and alongside the cafeteria to shade the facility and keep
it cooler in the summer. In FY2017 the Site Office entered the
Inuyama City “green curtain” contest, and won the award for “Group
Projects.”
● Taking part in river cleanup activitiesIn FY2017 the company
began taking part in river cleanup activities organized on an
annual basis by local residents. The activity involves clearing
large stones and algae from the river bed, trimming weeds along the
embankment and cleaning up the area along the river in the vicinity
of the Inuyama Site Office. In addition to representing the
company’s continued dedication to environmental activities, this
also gives DAIDO METAL a chance to contribute to the community as a
responsible corporate citizen.
Other environmental activities
Environmental risk managementDAIDO METAL and all of its Group
subsidiaries conduct emergency drills every year to prepare for
sudden emergencies or disasters. One item which relates to
environmental impact is the risk of spills or drainage of hazardous
materials. Checks are conducted and drills carried out. In both
FY2016 and FY2017 the company conducted drills which simulated an
earthquake that took place at night, when the number of personnel
on site is limited and lighting may be poor. Overseas trainees also
took part in the drill, and received practical experience in
dealing with such an incident.
Environment Consumer IssuesProduct Quality Control and PR
Activities
* Philosophy of the Three Gen’s: A method of resolving or
analyzing problems which focuses on three main points ‒ the Genba
or “actual place” a problem occurred, the Genbutsu or “actual item
or part” involved, and the Genjitsu or “actual situation or
circumstances” that caused the problem.
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DAIDO METAL CSR Report 2018 16DAIDO METAL CSR Report 201815
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IT Security Guidelines
https://www.daidometal.com/jp/it-security-guidelines/
The Corporate Compliance Committee
Chairman (Head of the Compliance Unit)
Members (Human Resources Planning Div. Manager and four other
members)
Secretariat (Legal Affairs Dept.)
Committee Chairman: President & Chief Operating Officer
(COO)
Vice-Chairman: Human Resources Planning Division Manager
Risk Management Committee Secretariat (Legal Affairs Dept.)
Committee members (9 members, primarily consisting ofexecutive
officers and managers of related operating divisions)
Type of risk Division responsible
Bimetal Division
BCP Secretariat
Legal Affairs Dept.
Finance Dept.
Productionrelated risk
Fire/disasterrisk
Salesrisk
Financialrisk
Business PromotionDept. of each company
TechnologyDivision
Quality Management &Planning Dept.
Environmental & SafetyManagement Dept.
Business PromotionDept. of each company
Production Promotion Dept. of each companyDaido Logitech Co.,
Ltd.
Purchasing Dept.,Legal Affairs Dept.
General Affairs Dept.,Corporate Planning Dept.
Human ResourcesPlanning Dept.
Information Management Subcommittee
Technologicalrisk
Productquality risk
Environmentalsafety risk
Purchasingrisk
Managementrisk
Human resources related risk
Information management risk
Production capacity risk
Technological development risk,intellectual property strategy
risk
Product failure risk,product liability lawsuit risk
Environmental pollution risk,health and safety risk
Fire/disaster risk (includesearthquake, flood, lightningand
other disasters)
Customer-related risk,anti-monopolylaw-related risk
Subcontractor Act-related risk
Distribution risk
Business continuity risk,overseas expansion riskFinancial
information reportingrisk, insufficient funds risk andexchange rate
risk
Human resources andlabor-related risk
Information disclosure risk
InformationSystems Dept.
IT-relatedrisk IT systems interruption risk
Risk Management Committee Members (As of April 2018)
The Corporate Compliance Committee: Participating members (as of
April 2018)
■ Diagram of the reporting and consultation structure
InternalReportingand
ConsultationOffice
ExternalReportingand
ConsultationOffice
The Corporate ComplianceCommittee
InstructionAdvice
Code of Conduct Standards of Conduct
Education
ReportReport
Instruction
②Report, Discussion
Report(major items) DiscussionReport
Notification③Report, Discussion
Instruction
Report
Instruction
Report
Board of Directors Audit & Supervisory Board
Rewards and Penalties Com
mittee
Division Manager
①Principles
Employees
Cooperation
Compliance manager -Chief Operations Officer
(COO)
Head ofthe Compliance Unit
EducationExplanation Report, DiscussionInstruction
The DAIDO METAL GROUP’s approach to compliance focuses not only
on upholding all laws, regulations and company internal rules, but
also insists that all employees abide by the rules and standards of
behavior of the communities in which they operate, conducting
themselves with proper social norms and common sense. Compliance is
viewed as a cornerstone of all company business activities, and all
employees are expected to be aware of and adhere to the “DAIDO
METAL GROUP Performance Standards.” The Group has a Compliance Unit
which is responsible for discussing compliance-related measures.
The head of this unit serves as the Chairman of The Corporate
Compliance Committee. A “Reporting and Consultation System” has
also been created to discuss and report on all compliance-related
matters that arise within the Group, ensuring that any potential
infringement of compliance standards is identified and reported as
swiftly as possible, and the anonymity of the person making the
report is carefully preserved. The Corporate Compliance Committee
provides the Board of Directors with regular reports on the status
of compliance activities within the Group, giving top management a
clear picture of compliance for the Group as a whole.
Domestic compliance trainingConducted sessions to promote
appropriate transactions
In FY2017 DAIDO METAL implemented measures to address revisions
to the Subcontract Act, and changes to the regulations governing
appropriate transactions in the automotive industry. The company
and all of its Group affiliated companies took steps to ensure
strict adherence to rules governing transactions, including a
series of “appropriate transaction promotion seminars” involving
members of the Purchasing Division and Legal Affairs Division. This
not only included ensuring that everyone was aware of the relevant
law, but also clarifying the administrative process that should be
followed when placing orders, to ensure that all such transactions
are appropriate, and training employees to follow the process
smoothly.
Overseas compliance trainingConducting compliance checks in
Asia(Group affiliated companies in Thailand and India)
In November 2017 the company conducted inspections at Group
companies in Thailand and India to verify and explain the
compliance structure. At ATA Casting Technology Co., Ltd., in
Thailand, the company held discussions with the local compliance
officer to ensure that measures were under way to cultivate an
awareness of compliance standards and to ensure that all affiliated
companies were implementing compliance policies on their own.
Risk management activities include “risk brainstorming” to
identify all of the potential risks to Group business activities,
“risk evaluation” and “risk response planning” to address each
item, and “reporting results to the Risk Management Committee or
the Board of Directors.” This cyclical process helps to reduce the
risks affecting the Group and provide a structure for the Group to
manage risks. Since FY2016, Group affiliates have been improving
their quality control activities. Led by risk control officers at
each facility they have conducted “risk brainstorming” sessions,
evaluated risks and developed measures to reduce risk. These
activities are reported to the Group’s Risk Management Committee on
a regular basis to help the Committee understand risk conditions
within the Group.
Compliance Risk Management
Photo of a training seminar
Compliance documents in Thai
Emergency inspections and preparations to resume production
BCP simulation drill
Managing the supply chainDissemination of Green Procurement
Guidelines
Green Procurement Guidelines include a survey which suppliers
use to describe their internal environmental policy, investigation
of any substances - including the products themselves - which may
have an adverse impact on the environment, and steps being taken to
appropriately manage and reduce the environmental footprint.
Implementation of disaster response training and BCP exercises
held in autumnThe company has prepared Business Continuity Plans
(BCP) and is bolstering its response measures at all Group
companies to address predictions of a major earthquake, given the
possibility of tectonic movement in the major faults of the area.
Evacuation drills were conducted in the morning, including all
employees, while in the afternoon staff practiced the
implementation of the BCP, such as emergency inspections needed to
quickly restart plants that supply raw materials, administrative
exercises at each plant to identify and report any damage,
simulations of functional responsibility, to verify and discuss
whether the facility is able to supply products customers in an
emergency, and other drills and simulations.
Initiatives to strengthen information managementThe Group is
taking steps to improve its IT management structure, including the
introduction in April 2017 of guidelines dealing with the
management of classified information. This created various levels
for information and laid down regulations for each category. In
March 2018 IT security Guidelines governing IT security management
policy for the entire DAIDO METAL GROUP were compiled and published
on the company website.
Green Procurement Guidelines
Fair Operating PracticesCompliance, Risk Management, and Supply
Chains
Information management risk
Risk of fire/disaster
EnvironmentalSafety Risk
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The winning team
View of the festival
The winning trophy and certificate for the fire hydrant usage
competition
Tape-cutting ceremony
Children listen to a safety lecture (Inuyama Site Office)
Enthusiastic children asking questions (Inuyama Site Office)
A tour group watches employees at work (Gifu Factory)
Rescue vehicles arriving at Daido Metal Saga
Picture of the presentation
Certificate of Appreciation
Picture of “balloon fishing” activities
Summer festival at the Inuyama Site OfficeEvery five years the
Inuyama Site Office holds a summer festival. Although the festival
was held during the hot summer season, it was favored by good
weather attracting a large number of people. The summer festival
allowed the people of Inuyama, who have lent so much support to the
company over the years, to visit the plant and enjoy activities
that helped relieve the heat. Stalls were set up by company
employees to sell a variety of goods. Hopefully we can continue to
promote communication with local residents through festivals like
this, which give us an opportunity to repay the community in which
we operate.
First Prize in the outdoor firefighting competitionEvery year
employees of the Inuyama Site Office take part in a firefighting
competition organized by the Inuyama Fire Department and the
Inuyama Association for the Safety of Hazardous Materials. The
Inuyama plant has a large number of hazardous materials stored on
its grounds, and therefore employees take part in fire drills to
prepare for the event of an accident. The regular practice has
naturally allowed employees to develop considerable skills in
dealing with such emergencies; so much so that in FY2017, the team
from DAIDO METAL won first prize
Social Contribution Activities
Kyushu Block joint training exercises at Daido Metal Saga Co.,
Ltd.On 11 and 12 November the emergency fire response team for the
Kyushu Block held a joint training exercise. From around 7:00AM on
the 12th, fire engines and ambulances from areas around the Kyushu
region began arriving at the site. A total of 250 vehicles
eventually arrived, including those from the Japan Self-Defense
Forces, along with 1,500 participants and spectators. The event
kicked off with speeches from Saga Vice-Governor Yoshihiko Soejima,
Takeo City Mayor Tadashi Komatsu and the fire chief of Saga
Prefecture. Participants then took part in drills simulating a
bridge collapse and the rescue of people from fallen vehicles. Next
came a drill in which people were rescued by helicopter from the
roof of a six-story building, a drill that involved rescuing people
from a mudslide, and extracting victims from a collapsed tunnel.
The entire exercise took an hour and a half.
Regional activities of at Daido Precision Metal (Suzhou) Co.,
Ltd. Personnel at Daido Precision Metal (Suzhou) Co., Ltd. are
actively engaging with citizens of their area. In FY2017
Activities of Group companies
Community Involvement andDevelopmentSocial Contributions to
Local Communities
in the competition which involved the use of an outdoor fire
hydrant. In the future the company will continue to participate in
this competition, aiming to maintain high awareness of and
preparation for fire emergencies.
Factory tours for local elementary schools Every year Daido
Metal facilities host visits for local elementary school children.
On the day of the visit crowds of happy children swarm into the
company’s facility. First they are shown a DVD which explains the
company’s operations and receive various explanatory materials
which they can look at while listening attentively to the
descriptions. Thereafter they tour the plant, which many of the
children find amazing, and they watch with interest as employees go
about their duties. At the end the children have a chance to
express their experiences and relay their thanks to the plant
personnel. The look of joy on the children’s faces is more than
sufficient reason for the company to continue conducting these
tours.
employee family members and local elementary school children
were invited to the facility. This was recognized as a
family-oriented regional activity, and was commended by the
management of the industrial park in which the company is
located.
Recognition from Bellefontaine Fire Dept. for the firefighting
team at Daido Metal U.S.A. Inc. Daido Metal U.S.A. takes part in
fire prevention activities in the local area as part of the
company’s active social contribution. In FY2017 the company
received a certificate of appreciation from the Bellefontaine city
fire department for their participation in safety education
programs for local children.
Family Day at Daido Metal Czech s.r.o.Daido Metal Czech s.r.o.
invited employees’ family members to the facility for a “Family
Day” event. The event attracted 252 people including employees and
members of their families. The event offered attendees a chance to
experience some elements of Japanese culture, helping them to
better understand their Japanese-owned company. The events included
origami demonstrations, “balloon fishing” and various other
entertaining activities.
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