SHIMA SEIKI MFG., LTD.

Climate Impact & Sustainability Data (2015)

Plans to acquire ISO 14001 certification at its headquarters and factories in September 2015.
Promotion of energy conservation in production divisions and the introduction of solar power generation systems.
Provision of environmentally conscious WHOLEGARMENT® flat knitting machines, design systems and other products.

Increased customer satisfaction through innovative marketing strategies surrounding WHOLEGARMENT® solutions.
Expansion of flat knitting technology into non-fashion fields and strengthening the automated cutting machine solution business.
Enhanced after-sale activities and improved operating cash flows.

Strengthened corporate governance through the full functioning of a Board of Directors system and a Board of Corporate Auditors system.
Welcomed Sachiko Nomura of the Dojima Law Office as an outside auditor in June 2015.
Established a system for protecting and leveraging intellectual property rights.

Long-term Goals:

Become an indispensable company to society through sustainable business development in 10 years.

Medium-term Goals:

Increase consolidated net sales to ¥70.0 billion, operating income to ¥15.0 billion, ordinary income to ¥15.0 billion, and net income to ¥10.0 billion by FY2017 (Ever Onward 2017 plan).

Risks of dependency on particular overseas markets (Asia accounts for over half of overseas sales).
Risks associated with fluctuations in currency exchange rates.
Risks associated with credit and accounts receivable recovery.
Risks associated with the protection of intellectual property rights.
Risks associated with overconcentration of production on a particular production site.
Risks associated with social and institutional changes in business areas.
Risks associated with changes in consumer apparel spending and unseasonable weather.

Employing forward exchange contracts and other hedges to minimize foreign exchange risks.
Properly managing customer credit to maintain a balance between receivables recovery risks and sales.
Enhancing intellectual property rights protection, particularly in Asia.
Diversifying revenue sources through enhanced after-sale activities and improved operating cash flows.
Renewed efforts to further strengthen risk management in overseas businesses.
Strengthening product proposal-making activities that meet the market needs of each country and region.