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Shimadzu Integrated Report 2021

Year Ending March 2021

https://www.shimadzu.com/

Contributing to Society through Science and Technology

0031-03102-PDF

Editorial Policy

Contributing to Society through	Strategy	Environmental Report	Social Report	Governance Report	Financial and Corporate
Science and Technology					Information

Contents

The Shimadzu Integrated Report 2021 is a summary of corporate strategies, business activities, and financial and non-financial information, which is provided to help stakeholders better understand the measures being implemented to increase the Shimadzu Group's medium- and long-term corporate value. The report is revised whenever necessary, not only to maintain a dialogue with stakeholders, but also as a basis for accommodating their valuable opinions and requests to the extent possible.

Financial Information		Non-Financial Information

Web	Information for investors	Sustainability
Web
	https://www.shimadzu.com/ir/index.html	https://www.shimadzu.com/
	sustainability/index.html

Please refer to the our company website listed above for the latest information.

Shimadzu Integrated Report

2021

Earnings reports and financial position

presentation documents

Fact Book

Reports related to corporate governance

Marketable securities reports

Publishing Dates

Published in July 2021

*Revised July 2021

Reporting Periods

From April 1, 2020 to March 31, 2021

(Also includes certain important information for periods other than indicated to the above.)

Reporting Organizations

Shimadzu Corporation and Shimadzu Group companies

Disclosure Policy

This report is provided in an effort to disclose information in a timely manner,

in accordance with the Disclosure Policy specified by Shimadzu.

For more details, refer to the website.

https://www.shimadzu.com/sustainability/approach/stake_holder/disclosure.html

Notes about Future Prospects

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

11 Message from the President

33 Business Overview

and Results

53 Environmental Report

67 Social Report

81 Governance Report

Contributing to Society through Science andTechnology

1. Shimadzu's Values

1. History of Shimadzu

1. Shimadzu'sUtilization Science and Technology and their

1. Financial and Non-Financial Highlights

11 Message from the President

21 Key Strategies-Advanced Healthcare

23 Key Strategies-Promoting Infectious Disease Countermeasure Projects

1. Message from the CFO

1. Message from the CTO

31 Message from the Director in Charge of Digital Transformations

Business Overview and Results

35 Business Overview

1. Analytical & Measuring Instruments Business

1. Medical Systems Business

1. Industrial Machinery Business

1. Aircraft Equipment Business

Sustainability Strategy

51 Sustainability Strategy

Environmental Report

1. Solving Various Environmental Challenges in an Effort to Achieve Development and Growth for a Sustainable Society
2. Certified as Eco-First Company by the Minister of the Environment

1. Shimadzu Joins RE100 International Environmental Initiative
2. Measures for Addressing Climate Change

62 MeasuresSociety for Establishing a Recycling-Oriented

1. Designing and Supplying Products and Services that Promote Global Environmental Conservation
2. Activities for Conservation of Biodiversity

66 Each Employee Actively Engaged in Environmental Conservation Activities

Social Report

1. Dialogues with Stakeholders
2. Customer Satisfaction (CS)
3. Utilizing Human Resources

1. Respect for Human Rights

77 Message from the Director in Charge of Human Resources

1. Supply Chain Management
2. Harmony with Local Communities

Governance Report

1. Policy on Corporate Governance
2. Corporate Governance

1. Compliance
2. Risk Management

1. Information Security

95 Profiles of Directors and Audit & Supervisory Board Members

97 Messages from Outside Directors

Financial and Corporate Information

99 Key Financial and Non-Financial Data over the Past 11 Years

101 Financial Statements

1. Corporate Profile and Stock Information
2. Information about Group Companies

Recognition from Outside Shimadzu

Shimadzu Participation in Key Initiatives

Shimadzu is included in the JPX-Nikkei Index 400, which was started by the Japan Exchange Group (JPX), Tokyo Stock Exchange, and Nikkei in 2014 for the purpose of selecting companies that satisfy the various conditions required by global investment standards.

Shimadzu is included in the S&P/JPX Carbon Efficient Index, which is an indicator for selecting companies with low carbon emission levels per net sales and that disclose sufficient information about carbon emission quantities. The index is also used for evaluation by the Government Pension Investment Fund (GPIF).

Shimadzu Corporation has been selected for inclusion in the MSCI Japan ESG Select Leaders Index and MSCI Japan Empowering Women Index (WIN), which are used as indicators for evaluation by the Government Pension Investment Fund (GPIF).

For the fifth consecutive year, Shimadzu Corporation has been recognized jointly by the Japanese Ministry of Economy, Trade and Industry and the Nippon Kenko Kaigi as a "White 500" company, which recognizes large corporations with outstanding health and productivity management practices.

For the first time, Shimadzu Corporation had been selected by the Japanese Ministry of Economy, Trade and Industry and the Tokyo Stock Exchange as a "Health and Productivity Management Brand," based on employee health management practices implemented strategically from a management perspective.

Shimadzu is included in the Diversity Management Selection 100 list, which is a list of companies selected by the Japanese Ministry of Economy, Trade and Industry to publicize advanced measures by companies that use diversity to achieve better management results.

Shimadzu has been selected as a Nadeshiko brand in recognition of being a company that actively promotes the role of women in the workplace. Nadeshiko

brands are selected from respective industries by the Japanese Ministry of Economy, Trade and Industry and the Tokyo Stock Exchange from the approximately 3,600 companies listed on the exchange, based on their practices that actively promote the roles of women, including providing a work environment where women are free to continue working.

Shimadzu has been certified by the Eco-First Program established by the Ministry of Environment as an Eco-First Company, in recognition of Shimadzu's environmental conservation measures.

Shimadzu endorses the
recommendations of the Task	In November 2019, the	In March 2021, Shimadzu
Force on Climate-related
Shimadzu Group's CO2	Corporation joined the RE100
Financial Disclosures (TCFD)
emissions reduction target	global initiative and declared
and is a participant in the
levels were certified by the	a commitment to use 100%
TCFD Consortium.
Science Based Targets (SBT)	renewable energy for all
	initiative as having a valid	worldwide Shimadzu Group
	scientific basis.	business activities by 2050.

In September 2019, Shimadzu
became a signatory to the	The following web page includes information
United Nations Global
about the topics listed below.
Compact (UNGC) proposed
https://wwwhttps://www.shimadzu.shimadzu.com/sustainability/evaluation.com/sustainability/.html#06
by the United Nations and
https://www.shimadzu.com/sustainability/evaluationevaluation.html#06.html#06
became a member of Global
Compact Network Japan, the

local UNGC network in Japan.

Current Initiative Participation by Shimadzu

1

Shimadzu Integrated Report 2021

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Contributing to Society through Science and Technology

Shimadzu's Values

Corporate

Philosophy

Management

Principle

CSR Charter

Corporate Philosophy

Contributing to Society through

Science and Technology

Management Principle

Realizing Our Wishes for the Well-being of

Mankind and the Earth

CSR Charter

Create a Brighter Future

-Solve societal challenges while working towards harmony

between the earth, society, and people-

Based on Shimadzu's corporate philosophy "Contributing to Society through Science andTechnology" and management principle "Realizing Our Wishes for the Well-being of Mankind and the Earth," Shimadzu is committed to supplying products and services that meet the requirements and solve the progressively more diversified and complex challenges of society and to achieving harmony with the global society, by utilizing the extensive wealth of technologies and expertise cultivated over many years of conducting business.

To earn the trust of customers, shareholders, business partners, employees, local communities, and other stakeholders and achieve sustainable growth and development for Shimadzu businesses and society, Shimadzu will engage in company activities and fulfill social responsibilities based on two principles-solve the challenges of society through business operations and engage in activities as a responsible member of society.

Corporate Governance	To achieve sustainable growth and increase the corporate value in the medium and long term, we
	shall establish and improve corporate management systems that ensure management transparency
	and fairness, and that enable quick and bold decision-making and implementation of measures.
Practicing Corporate	Shimadzu shall practice the following: 1. contribute to society, 2. ensure actions are fair and
Social Responsibility	transparent, 3. respect human rights, 4. protect the global environment, and 5. maintain and build
	relationships with stakeholders (customers, shareholders, business partners, employees, and
	local communities).
Accountability	Shimadzu shall disclose information about company activities in a timely, appropriate, and fair
	manner and cultivate a deeper mutual understanding through dialogue with stakeholders.

3 Shimadzu Integrated Report 2021

Contributing to Society through	Business Overview	Sustainability Strategy	Environmental Report	Social Report	Governance Report	Financial and Corporate
Science and Technology	and Results					Information

Striving to "Become a Company that Builds the Foundation for a Prosperous, Safe, and Secure Society and is Needed by Society"

Throughout the over 145 years since Shimadzu was founded in 1875, the challenges of society have become progressively more diversified and complex. Shimadzu, however, has remained steadfastly dedicated to solving those challenges, building the foundations for a prosperous, safe, and secure society, and achieving a society needed by stakeholders, based on our corporate philosophy and management principle.

Business Areas

Human health

Science and

technology

Safety and	Industrial
security of society	development

Shimadzu Integrated Report 2021

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Contributing to Society through Science and Technology

History of Shimadzu

Shimadzu Contributes to the Realization of a More Convenient, Safe, and Secure Society through Science andTechnology

Contributing to Society through	Business Overview	Sustainability Strategy	Environmental Report	Social Report	Governance Report	Financial and Corporate
Science and Technology	and Results					Information

First in

Japan

Shimadzu has continued to grow and develop by constantly satisfying the challenges faced by customers and solving the challenges of society underlying those needs. We remain committed to achieving sustainable growth and progress for society and increasing medium- and long-term corporate value for Shimadzu by continuously using science and technology to address challenges in society head-on.

2010

Development ofTesting Instruments for Clinical Samples

Developed Japan's first triple quadrupole high-performance liquid chromatograph mass spectrometer

First in

Japan

1978

2020

Preventing the Spread of the COVID-19 Pandemic

Developed a fully automatic real-time PCR testing system and novel coronavirus detection kits

Safety and Efficacy of Pharmaceuticals

		Completed a modular liquid chro-		First in
		matograph (LC) system
			the
	First in
		2003	world
	Japan
			Improved Healthcare Quality
	1957		Developed the world's first cardiovascular
		diagnostic X-ray system equipped with a
	Advancement of the Petrochemical		direct-conversion flat panel detector
		(FPD)
	Industry
1896	Successfully commercialized a general-		2002
purpose gas chromatograph
Early Radiograph			KoichiTanaka Awarded the Nobel
Successfully produced X-ray photographs		1967	Prize in Chemistry
		Improved Automobile Safety

2018

High-Accuracy

Analysis of Complex Compounds

Developed a quadrupole time-of-flight(Q-TOF)high-performance liquid chromatograph mass spectrometer

																																																																																Manufactured our first fatigue testing																																													First in
																																																																																machine, which was delivered to an
																																																																																																																												Japan
										First in																																																																	automobile manufacturer
1877									Japan
																																																																																																																							2014
	Challenge of Starting from Zero
	Successfully launched the first manned																																																																																																													Early Detection of Breast Cancer
	balloon flight in Japan																																																						First in																																																							Developed a dedicated breast PET system
																																																																																											1985
																																																													Japan
																																										1909																																																					Improved Semiconductor																																			(Billion yen)
																																												Advancement and Widespread																															Manufacturing Productivity																																			400
																																																																										Completed a magnetically levitated
																1882																								Use of Medical Devices
																																																																						First in	turbomolecular pump.
		Formation																																					Completed a medical X-ray device
																																																																										the	It was even adopted by the world's																																			350
		of Limited														Widespread Use and
																																																																											world	largest semiconductor manufacturing
		Company														Advancement of Physics and																																					1961
																																																																				equipment manufacturer, expanding
																Chemistry Instruments																																															Reduction of Radiation									Shimadzu's market share throughout																																			300
																Supplied state-of-the-art educational
																																																				Exposure									the world.
																equipment
																																																														Developed a remote-controlled																																																									250
Founded																																																																													X-ray fluoroscopy system
																																																																																																																																																												200
																																																																																																																																																												150
																																																																																																																																																												100
																																																																																																																																																												50
1875	1917	1945			1950	1955							1960							1965							1970						1975					1980			1985							1990					1995							2000							2005				2010	2015							2020	(FY)

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

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Contributing to Society through Science and Technology

Shimadzu's Scienceand Technologyand their Utilization

Shimadzu's Science and

Contributing to Society through	Business Overview	Sustainability Strategy	Environmental Report	Social Report	Governance Report	Financial and Corporate
Science and Technology	and Results					Information

The following web page includes information about the topics listed below.

https://wwwhttps://www.shimadzu.com/research.shimadzu.andcom/research_development/indexand.html

https://www.shimadzu.com/researchdevelopment/indexand development/index.html.html

R&D

Shimadzu Group Innovation Centers

Technology and their Utilization

Ever since Shimadzu was founded, the Shimadzu Group has been supplying innovative products and services useful to customers.Therefore, research and development serves as a critical lifeline of the Group that requires we continue engaging in ambitious research and development work intended to acquire advanced technologies.

There are as many different challenges and needs in society as there are regions and countries in the world and they continue to become more diverse.The Shimadzu Group contributes broadly to solving the challenges of customers by identifying those challenges and needs and breaking them down into specific research objectives.

However, to create new technologies and innovations, it is essential that we work with partners in the respective regions where the challenges or needs occur.

Europe

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

Innovation Center (China)

China

Japan

https://wwwhttps://www.ssi.shimadzu.ssi.shimadzu.com/about/shimadzu.com/about/shimadzu-academic-program.html- https://www.ssi.shimadzu.com/about/shimadzu-academic-program.htmlacademic-program.html

Innovation Center (U.S.)

Americas

Consequently, we are engaged in joint development or innovation creation projects with a variety of partners around the world.

Such collaborations are based at innovation centers established in various regions around the world. Conducting joint research with advanced customers at the respective regional locations in the Americas, Europe, China, other Asian countries, and Japan, has allowed us to produce results more quickly. By sharing those results with the other locations around the world, we offer corresponding value to more people.

Innovation Center (Germany)

Asia

Global Application Development

Center, Head Office in Kyoto

	Shimadzu Tokyo Innovation Plaza
Innovation Center (Singapore)	(opening scheduled 2022)

Examples of Collaborations at Innovation Centers

Europe Jointly developed an oxygen content analysis system for	Asia Established the Shimadzu-CGH Clinomics Centre joint research laboratory
use in biofuel research, in partnership with the major petroleum	with Changi General Hospital (in Singapore) for using mass spectrometers in clinical
company TotalEnergies SE in France, the University of Pau and the Adour	testing and individualized treatment.
Region in France, and the University of Oviedo in Spain.	Ceremony for Signing Joint Research Agreement between
	Changi General Hospital and Shimadzu (Asia Pacific)

	Front row: SAP Managing Director Tetsuya Tanigaki (left) and CGH CEO Ng Wai Hoe
GCMS-QP2020NX Gas Chromatograph	(right) who signed the joint research agreement
Mass Spectrometer Used for System	Back row: From the left, SAP Corporate Officer Prem Anand, Deputy Prime Minister of
Development	Singapore Heng Swee Keat, and CGH Medical Board Chairman Siau Chuin

7 Shimadzu Integrated Report 2021

China Engaged in environmental analysis with the Research

Japan Jointly researched a new cancer

Americas Jointly developed the Nexera UC Prep

Center for Eco-Environmental Sciences, Chinese Academy of

immunotherapy method using mass spectrometry

semi-preparative supercritical fluid chromatograph

Sciences, and researched Chinese herbal medicines with the

technology in partnership with the Providence Cancer

system in partnership with a pharmaceutical organization

National Institutes for Food and Drug Control in China.

Institute in the U.S.

in the U.S., based on the needs of R&D users.

Signing Ceremony for Comprehensive Joint Research

The following web page includes information about

The following web page includes information about

Agreement with the Research Center for Eco-

the topics listed below.

the topics listed below.

Environmental Sciences, Chinese Academy of Sciences

https://www.shimadzu.com/news/78b3e6xveh8nq8bt.html

https://www.shimadzu.com/news/5grl8xpx1xo9886c.html

Left: Professor Guibin Jiang, Research Center for Eco-

Environmental Sciences, Chinese Academy of Sciences

Right: Managing Director Yoshiaki Mase, Shimadzu (Hong Kong)	LCMS-9030High-Performance Liquid Chromatograph Mass	Nexera UC Prep
Ltd. (at the time)	Spectrometer Used for Research
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