A Message from the Top Executive

kanda

Amid Changing Times, We Will Strive to Meet
the Expectations of Our Stakeholders with a
Spirit of Challenge and Innovation

Backed by key technologies related to cooling and heating, the Sanden Group conducts business with customers around the world, through diversified operations in the dynamic commercial store showcase, vending machine, and car air-conditioning compressor and systems industries. The Sanden Group has undertaken comprehensive structural reforms since August 2016 in response to recent changes in foreign exchange rates and market conditions. A Companywide effort to implement these reforms has generated steady results through improvement and innovation activities as each and every employee challenges to pursue meaningful work. We are grateful for the continued support and cooperation of all our stakeholders amid these changing times.

Initiatives to Create Corporate Value

In addition to targeting a return to a growth trajectory, the Sanden Group has launched a Corporate Mid-Term Plan for FY2017- FY2020. We are moving forward with four key initiatives while rapidly working to finish comprehensive structural reforms across the Company. The Sanden Group is optimizing its business portfolio to create greater corporate value by concentrating its resources on growing in business fields related to the environment.

In the Automotive Systems Business, Sanden targets further growth in the field of thermal management systems with new technologies and products, including heat pump systems, electric compressors, and compressors using low global warming potential refrigerants such as CO2, in anticipation of the automotive industry’s shift toward environmentally friendly hybrid, electric and new energy cars.

In the Commercial Store Systems Business, Sanden is utilizing two major approaches to growth. The first is to pursue new markets. The Company plans to take its successful domestic cold-chain business model and expand it globally, especially to Asian markets. The second approach is to expand based on new technologies and new products. By introducing IoT technologies to current cold-food supply chains, we will provide our customers with solutions centered on optimum temperature and humidity control resulting in high freshness and improved customer satisfaction.

Strengthening Compliance and Corporate Governance

In March 2017, Sanden and one of its Group companies in Europe were ordered by the European Commission to pay a fine for violations of the EU competition law. Taking this matter with the utmost seriousness, the Sanden Group is making every effort to thoroughly strengthen its compliance and corporate governance systems by reviewing rules, re-training employees, and conducting periodic audits. In June 2017, Sanden added one more outside director to the Board and established the Executive Nomination and Compensation Committee. While further strengthening corporate governance, the Company aims to achieve sustained growth and improve corporate value over the medium term while fulfilling its corporate social responsibility.

Establishing the Sanden Brand as One Trusted by Society

Sanden will celebrate its 75th anniversary in 2018. Consistent with its Corporate Philosophy, the Sanden Group is endeavoring to ensure the Sanden brand is one trusted by society through the provision of products, systems, and services that match the needs of society, while continuing to take on challenges and evolve amid changing times. We will seek opportunities to engage with our stakeholders and proactively enhance communications. We ask for your continued support and encouragement.