Environmental and Social Report 2009/10DENSO Manufacturing UK Ltd

In 2006 DENSO Manufacturing UK Ltd (DMUK) published our first environmentalreport. This was hugely significant in that it captured a key milestone for usas a plant – our achievement of becoming a zero landfill company. The firstenvironmental report received very positive feedback from many people andwas subsequently posted on the DENSO Corporation website (www.globaldenso.com) and was also included in the CSR Report ofDENSO Corporation CSR that year.

As one of only 3 DENSO plants within our extensive European operations todo so, since that time we have continued to publish an annual Environmentaland Social Report which has enabled us to broaden the scope of our disclosuresto the many different stakeholder groups that read this report each year.Our annual reports continue to be featured on both the DENSO Corporationwebsite and in the annual DENSO Corporation CSR reports.

2009 to 2010The last 12 months for DMUK have been probably the most difficult 12 monthsin the company’s almost 20 year history. The plant has experienced theeffects of a deep economic recession, unpredictable and volatile demandfrom our customers arising from unprecedented financial support to the carindustry around the world in the form of scrappage incentives. Yet despitethis, thanks to the efforts from our hugely committed Associates who formour workforce, we have managed to deliver one of the best overall performances in our Company’s history. On top of this we also became thefirst greenfield site within the current European operations to appoint, byinternal promotion, a local managing director. Mark Hayward, took up thisrole from the first of January 2010. Our thanks go, at this time, to our former managing director, Hayashi Suzuki, who has returned with his familyto Japan to take on a substantial assignment at our flagship plant, Nishio.

This exceptional performance over the last 12 months, as you will see withinthis report, is not just in terms of recovering our operating profitability but also insecuring a national environmental award, being internally recognised as the bestplant from a facilities management point of view, and being a part, a significantpart, of the reasons why DENSO, as a regional organisation, received a superior quality performance award from Toyota for the second year running.

The scope of this report remains primarily to demonstrate how, year-on-year,we are striving to improve our performance and this continuous improvement(kaizen) spirit is also applied to the development of this annual report. I wouldrepeat my request from previous years for any reader who feels that theycan find additional improvement ideas or wish to provide feedback to us onhow we can further improve this report and the disclosures within it, to doso by writing to me at the company’s address (on reverse of CSR Report).I would like to thank our Associates, their families, and the many communitypartners who have all played their part in the achievement of the results illustrated throughout this report.

Thank you for reading this document and for your interest in DENSO.

Alan Taylor, Head of Human Resources and Information SystemsOn behalf of DENSO Manufacturing UK Limited

1

Contents

Environmental and Social Report 2008/9

Mark Hayward, Managing Director

Environmental and Social Report 2007/8

DENSO CORPORATION 2-3

DMUK OVERVIEW 4-5

ENVIRONMENTAL PROTECTION

Eco Friendly Activity 6-7

Eco Awareness & Organisations 8-9

CORPORATE CITIZENSHIP

Working with schools & education 10-11

Supporting local governance & charities 12-13

RESPECTING EMPLOYEES

Wellbeing & OHS Management systems 14-15

DMUK HISTORY 16-17

RESULTS 18-21

2

DENSO’s first headquarters in 1949

Our philosophyOur mission is to contribute to both people’s happiness andsociety’s growth by creating value together with a vision forthe future. It has three key principles:

Our Mission is to contribute to society.

People are our most important asset.

Our Key Policy is Customer first.

To achieve our mission, we will:

Put a great value on customer satisfaction, by paying carefulattention to our customers’ voice and supplying them withattractive products.

Seek continuous growth, by anticipating change in order thatwe stay one step ahead.

Co-exist and harmonise with Society, by adopting moderntechnology and encouraging every Associates’ creativity anddedication in order to contribute to environmental preservation, improved safety and comfort.

Establish an energetic company, by creating an environment,which respects the individual and also assists them to realisetheir full potential.

Through collaboration and working together with a strongdetermination we are making great strides towards achievingour mission.

Our company has an ambition to become a leading companyin Europe. A company that is recognised not just for worldclass levels of production but also for our excellence in ourenvironmental activities, our approach to health and safety,and our overall contribution to the community in which weoperate.

We have established comprehensive frameworks for trainingand educating our Associates. By applying a continuouscycle of risk assessment and workplace inspections we aim tocreate a safe working environment.

Corporate OverviewDENSO has its origins in post-war Japan and was formed in1949 when the Toyota Motor Company divested its electricalcomponents division to become NIPPONDENSO (literallytranslated as the Japanese Electrical ComponentsCompany).

DENSO has grown steadily over the years and one of the keyturning points was back in 1953 when DENSO and Boschreached a technical agreement. Bosch sent engineers toDENSO to teach them how to use their technologies. This was amajor stepping stone in DENSO’s history and a major part inmaking it the $30 bn business it is today employing over120,000 employees or Associates as they are known in-housein 32 countries around the world.

DENSO Corporation, headquartered in Kariya, Aichi Prefecture,Japan, is now a leading global supplier of advanced automotivetechnologies, systems and components. Since its foundation ithas spurred industry growth through pioneering research anddevelopment and superior quality products.

DENSO works hand-in-hand with all major automakersworldwide in the fields of climate control, engine management,body electronics, driving control and safety, hybrid vehiclecomponents, and information communications.

DEN

SO

CO

RP

OR

ATION

DENSO SpiritDENSO has been built with a Japanese philosophy and at thecore of every operation is the spirit of DENSO. Simply put theDENSO Spirit is the heart and soul of DENSO.

How this makes us different is that it drives every decisionwe make, how we do our jobs, how we work together, howwe share ideas and how we treat each other. In the DENSOSpirit, job titles, responsibilities, the size of your desk or yoursalary does not matter. What matters is your commitmentand passion for doing a job to the best of your ability.

The DENSO Spirit can be split into three key areas:

Foresight, Credibility and Collaboration and all are needed towork together for the Spirit to continue.

Each of the areas is made up of three core values:

ForesightForesight encourages us to be pioneers, to look ahead anddevelop a plan for the future.

Core values

VisionAnticipate change and set goals and targets that will helpyou make that change happen.

CreativityBe flexible and look for as many solutions and paths to yourgoals as possible.

ChallengeDon’t quit, even when the going gets tough. And when youdo succeed in overcoming your challenges and reachingyour goals, stop to enjoy your success for a moment.

CredibilityIt is essential that our customers and communities trust usas a manufacturer and neighbour.

Core values

Quality firstThis is absolutely vital - to achieve premium quality meansthat all Associates must work together to prevent every defect.Only the highest quality products should move on to the nextstep in the manufacturing process.

On-site verificationTo solve a problem, you have to understand the situation. Thatmeans going to the actual location of the problem, talking withthe people involved and then making decisions based on facts.

Kaizen (continuous improvement)Never be satisfied with the current situation or the currentway of doing things. Always look for ways to improve and dothings better.

CollaborationCollaboration means group effort and cooperation.

Core values

CommunicationTrue communication is more than just talking - it’s also listening. Thoroughly discuss issues with your colleagues untilyou reach an understanding.

TeamworkWhen we work together we are much stronger than if wework alone.

Human developmentIt’s important that we take every opportunity to learn andgrow in our jobs. This not only helps you, it helps boost thevitality and strength of DENSO.

3

Business StructureProduct group system - To promote a sales system thatstresses globalisation, borderless business, increased speed inoperations, and to create a lean and simple organisation, wehave adopted a system organised in seven product groups:

Business Groups

Powertrain Control Systems

Gasoline/diesel management systems and components, transmission control components

Electric Systems

Alternators, starters, components for hybrid vehicles, components for electric power steering systems

Electronic Systems

Engine ECU’s, semiconductor sensors, ICs

Thermal Systems

Car air-conditioning systems, radiators, natural refrigerant(CO2), heat-pump hot water supply systems

Information & Safety Systems

Car navigation systems, ITS products (ETC systems, telematics),Safety and chassis systems (airbag sensing systems, bodycontrol module, instrument clusters)

Small Motors

Industrial Systems and Consumer Products

Collaboration Credibility

Foresight

Our productsThe Company manufactures air-conditioners, heaters, blowers,radiators and engine cooling modules for a variety of leadingvehicle manufacturers including Toyota, Honda and Jaguaras well as producing a substantial number of parts for boththe vehicle manufacturers as ‘spares’. DENSO has, particularly,in recent years, expanded its aftermarket business and thiscreates an additional demand for DMUK. Overall ‘spares’production is an important part of our business profile.

Heating, ventilating and air conditioning (HVAC) UnitThe HVAC unit is installed in a vehicle behind the instrumentpanel and is required to be smaller, quieter and more efficient.DENSO strives to do this as a leader in this field. The HVACunit includes an air filter, blower fan, evaporator and heatercore, and generates conditioned air for the passenger cabin.

DENSO technology – leading the worldIn 1994, we introduced the world’s first film-door HVAC unit,which uses high accuracy film doors to switch air flows,reducing the size and weight of the unit and achieving morecomfortable air temperature control.

The two-layer flow HVAC unit, was first introduced in 1997,and can circulate internal warm air in the lower half of thepassenger cabin, and route external fresh air through theupper half, improving heating efficiency and more effectivelypreventing window fogging.

HVAC sub components

Heater core The heater core reheats a portion of the air cooled by theevaporator by exchanging heat with engine-cooling water.The reheated air is then mixed with the remaining evaporatorcooled air and the mixed air is blown into the vehicle cabin.

EvaporatorThe evaporator cools and dehumidifies air inside the vehicleby exchanging heat with a refrigerant.

4

DMUK OverviewDENSO established its first operations base in Europe in1973 but it was almost 20 years before DENSO establishedDENSO Manufacturing UK (originally known as NIPPONDENSOManufacturing) Limited in Telford in 1990. The plant was constructed at a greenfield location within easy reach of vehicle manufacturers such as Toyota, Honda, Rover, Jaguarand Land Rover.

Throughout the 1990s DMUK gradually expanded its productportfolio and as demand for our products grew DMUK as afacility was expanded bringing tens of millions of pounds ofinward investment to Telford and Wrekin.

DMUK is the largest UK based manufacturing facility forDENSO and supplies HVAC (Heating, Ventilation and AirConditioning) units, radiators, and ECMs (Engine CoolingModules) to a distinguished portfolio of vehicle manufacturerslocated across the UK, Europe and Internationally.

The factory, at its peak, employed around 1,600 Associatesand was one of the largest employers in Telford. As a resultof the current reductions in demand for vehicles, the Companyat the time of print, employs around 700 Associates.

The facility has been expanded twice in 1997 and again in2006, and now spans over 60,000 sq. metres on a site of210,000 sq. metres. Sales turnover peaked at £246m, however,in 2009 is expected to be at around £166m. The factory dispatches more than 600,000 components per month.

The factory is truly a world-class facility which contains bothprocess and assembly operations.

Using state-of-the-art technology in a just-in-time environment,DMUK carries out a range of manufacturing processes toproduce plastic mouldings, aluminium pressings, heatexchangers and pipe and hose components. These supply in-house final assembly lines and a kitting bay before deliveryto our warehouse and despatch areas.

DM

UK

OVER

VIEW

5

• Established August 1990

• Greenfield site – size of facility – 210,000 m2 (land); building 60,000m2

• Sales turnover currently in excess of £150m

• Goals – Leading Air Con Company in Europe, “Employerof Choice” and 50% UK Market Share for HVAC

Engine cooling module

Condenser By exchanging heat with air, the condenser cools the hightemperature, high pressure gas refrigerant sent from the compressor and condenses it into a liquid refrigerant. This heatallows the air conditioning system to emit the heat absorbedby the evaporator from inside the vehicle to the outside. Ourhigh-performance condenser reduces the required compressorpower, resulting in improved fuel economy.

Radiator The radiator cools the engine by exchanging heat between theengine coolant and air. The radiator has fan(s) to facilitate theheat exchange.

As a leader in this product field, we strive to improve the radiatorefficiency, increase its cooling capacity, reduce the radiator size,and improve the vehicle fuel economy by reducing the radiatorweight and fan consumption.

Front-end moduleOur front-end module integrates a front-frame carrier and severalcomponents including a radiator, air-conditioning condenser,fan and intercooler, all in one unit. Our front-end modules arelighter and more compact than standard components. In addition,we improved the heat exchange efficiencies of heat exchangersby optimising the entire front-end thermal component zone.

Mouldings, pressing, pipes and hoses are made in addition toproducing the finished units, we manufacture HVAC casesand blower unit fans in-house.

We also manufacture and sub-assemble aluminium pipes andhoses to support internal HVAC assembly. Our pipe and hosesub-assemblies can also be issued as kits for spares.

Our CSR frameworkThroughout our time in Telford DMUK has actively contributedto the community and some of these major events are shownin our historical timeline on pages 16 and 17. In the last sevenyears we have worked particularly hard to develop a comprehensiveset of activities encompassing not only the environmental agendabut also working with local schools and community groups.

In 2010 we have taken the opportunity to formally define ourCSR framework. As an operating plant we are fortunate in thatDENSO Corporation sets out strong principles through its groupdeclaration of corporate behaviour. This declaration sets outthree key areas for global attention within DENSO’s worldwideoperations.

These key areas are:

Environmental protection

Corporate citizenship

Respecting employees

For DMUK it made sense for us to orientate our local CSRactivities around these three key areas. You will see a numberof key pillars of activity used to explain our activities and theseare summarised as follows:

Environmental protectionEco-friendly activity Eco Awareness ActivitiesCollaborating with Eco organisations

Corporate citizenshipWorking with schools and educational organisationsSupporting local governance Working to support target charities

Respecting employeesSupporting charitable activitiesOccupational health and safety managementWelfare and well-being

It is on this basis that we have developed this year’s report.

• Produces more than 600,000 components per month

• Automotive components supplied just in time tovehicle manufacturers

• Part of Thermal Systems, the main product division in DENSO.

•Employing around 700 peopleFAC

TS

6

DENSO Eco VisionAs a global Corporation the DENSO Group (DENSO) places atop priority on implementing initiatives to protect the environment.DENSO aims to be a corporate group that contributes to the“creation of an advanced automotive society” through the realisation of cars that are kind to people and the Earth.

In 2005 DENSO announced DENSO Eco Vision 2015 as aroadmap towards the realisation of a “sustainable automotivesociety”. The objectives of Eco Vision 2015 are based onreduction targets laid out by the Kyoto Protocol and associategroups. They also conform to the Intergovernmental Panel onClimate Change’s goal of beginning to reduce greenhouse gasesby 2015 and halving them by 2050 compared to 2000 levels.

DENSO has established goals of promoting the prevention ofglobal warming, resources recycling (reducing the use ofresources) and control and reduction of environmentally hazardous substances (pollution prevention) in a targetedand ongoing manner throughout all of the group’s businessactivities.

DENSO’s Eco Vision can be summarised as follows:

Eco Management

Eco Products and Eco Factory

Eco Friendly

The following points were the main agenda in the EnvironmentalAction Plan 2010:

• Strengthen development of products that contribute to the environment

• Ascertain and reduce CO2 emissions in all corporate behaviour

• Steadily reduce the Group’s consolidated environmental impact

• Strengthen consolidated environmental management

Res

ourc

esre

cycl

ing

Prevention of global warming

Controland

reductionofenvironmentallyhazardoussubsta

nces

Eco ManagementStrengthen collaborationwith group companies as well as partners

Eco ProductsDevelop new technologiesand products that emphasise the environment

Eco FriendlyEnhance external coordination and exchangetogether with informationdisclosure

Eco FactoryReduce environmentalimpact of productionglobally

DENSO EcoVision 2015

1. Eco Management: Strive to strengthen environmentalmanagement through DENSO Group collaboration from a global perspective.

2. Eco Products & Eco Factory: Pursue development, design and production activities that emphasise the environment from a holistic perspective at every stage of the product lifecycle from manufacture to market use and disposal.

3. Eco Friendly: Actively disseminate information and coordinate with outside entities in a way that transcends industry borders while working to communicate with all stakeholders

DENSO Corporation publishes an annual CSR Report whichis available from the corporate website (www.globaldenso.com)This report can provide readers with much more informationabout our progress towards our goals as defined in theCorporate Eco Vision.

In the corporate CSR Report you can read about how since2001 DENSO has been working collaboratively with US-basedDuPont to develop plant-derived resin that could then be usedas a raw material for the production of resin-based productssuch as ‘tanks’ that are assembled in our radiator production.

You can also read about DENSO’s work to develop bio-fuelfrom algae which it has been researching since 2006 inanother joint project with world leader IAB.

Did you know...DENSO is currently ranked 6th in the GLOBAL 100GREENEST COMPANIES according to NewsweekMagazine.

DMUK Eco VisionAt DMUK we are fortunate to have the strong corporate leadership of the DENSO Corporation in both its bold EcoVision 2015 objectives and the many practical, and oftenhumbling, leadership examples that it provides to an overseas group company such as ours.

Our facility was constructed according to DENSO’s exactingconstruction guidelines in place at the time and so benefitsfrom a forward thinking approach to plant construction. Ourlatest chapter on improving our environmental performancecommenced in 2004 when we made a declaration as a plantto challenge to achieve a zero-landfill condition within 24 months.

This sparked a company wide effort, described in previousEco reports that we have issued, and culminated in ourachieving this goal, for which we were recognised by beingfinalists for 2 national awards in 2006

Since that time we havestrengthened our Eco Visionactivities. We do not have designresponsibility at our Telfordplant, so we can exert relativelylittle influence over the EcoProducts element of our business

Despite this we have proven,time and again, our ability to bea leading Company. This is in theway we manage our factory (Eco Factory) and ongoing retention of our ISO 14001 accreditation for our environmental management system (EcoManagement). We continue our efforts to widen our influenceboth on a collaborative basis with local organisations such asBESST (Business Environmental Support Scheme for Telford)and with organisations across the region. We have alsoworked hard to contribute to schools and other educationalgroups to help get the environmental message across.

Over the next few pages you will see many examples of howwe have developed our activities in these areas over the past12 months despite the distractions of a global economicrecession, a severe deterioration in the car industry and therequirement to restructure our own operations in Telford.

We remain committed to being a leading company for eco-efficiency and for having a positive contribution on environmental issues.

ECO

AC

TIVITY

7

Giving nature a helping hand.DMUK Eco garden projectDENSO is committed to supportingbiodiversity programmes as well asproviding facilities for environmentalawareness programmes to be delivered.Biotopes or Eco-gardens exist in allregions and naturally are most developedin Japan. Our Daian plant is the model,globally, and provides all overseascompanies with inspiration.

Since 2004 DMUK has been determined to establish our ownecogarden and in 2009 we took ourfirst steps. The development of aneco-garden on site is the focus of ourbiodiversity programme.

The main drivers for the project are:

• Protect local biodiversity.

• Create a green open space for our employees to enjoy and respect theenvironment.

• Increase interaction with the local community and schools.

The site was analysed by ShropshireWildlife Trust, which provided theframework to enhance and developexisting and new habitats in the garden.

With the support of a “Project Green”post-graduate student and allEnvironmental Champions, the projectwas kicked off in January 2010.

Since then, Environmental Championsand a group of enthusiastic Associateshave supported the project. Work inthe garden has been scheduled oneSaturday a month and the main tasksthat have been completed so far are:Collection of litter, removal of birch,marking paths in the woodlands andshredding waste. Hopefully with thesupport of more Associates we willbe able to make good progress in the next few months.

Green Business Awards: Waste reduction winnerIn just three years, the GreenBusiness Awards have become oneof the most prestigious benchmarksof environmental excellence for corporate UK. The aims of the GreenBusiness Awards remain to discoverand recognise the most innovative,ambitious and effective initiatives bybusiness in the UK.

This year DENSO won the “WasteReduction” category in recognitionfor the significant reduction of wastegenerated in the business (see tablesin RESULTS) in the last 4 years.

This reduction has been mainlyachieved by implementing smartermanufacturing techniques whichinclude lean manufacturing, TotalMaintenance Programme (TPM), therework of previously rejected partsand the introduction of resource efficiency

“Off is Normal”This is the basic message sent to allAssociates in a company campaignthat we ran this year. A ‘design aposter’ competition for childrenlaunched the campaign in the summer.

All lights and small appliances thatcan be switched off at break timeswere identified and a large postercampaign highlighting “off is normal”for water, gas and electricity were ondisplay. But the central point of thecampaign was a video (made withthe support of all the EnvironmentalChampions) which was shown to allAssociates.

Seen here, with the then MD HenrySuzuki, are the sisters, Lily (8) andLottie (5) McGrath who won thecompetition, with their winningposter. Both attend Apley WoodPrimary School in Leegomery andare the daughters of one of ourAssociate Environmental Champions.

ISO14001 certificate

DMUK representatives receiving theGreen Business award

Green Business award case studyfeaturing DMUK

Then MD,Henry Suzuki,with the winnersof the “Off isnormal” postercompetition.

Associates and their families help tocreate the new Eco garden at DMUK

The DMUK Eco garden plans

OFF ISNORMAL

DENSO supports the Pride ofShropshire AwardsDMUK has once again helped tosponsor the Pride of ShropshireAwards 2009. The awards, whichhave become a regular event in thecounty, are aimed at rewarding andrecognising those who go the extramile to make a difference in the community. DMUK sponsored theEnvironmental Project award, which in2009 was won by the Carrot & CarpProject.

Christmas Cards CampaignThe Woodland Trust campaign isnow going into its 13th year. In thattime it has recycled 659m cards –59m last year alone - and planted155,000 trees across the UK.

Money raised helped the woodlandconservation charity to plant 12,000new native trees during 2010 – manyby children. Donors can even choosewhich part of the country they wanttrees to be planted.

At DENSO with the support of allAssociates, this year we managed tocollect 71Kg of Christmas Cards, whichbrings the total to 600 Kg. in 6 years.

In addition, DENSO donated £2 perKg. of cards collected. The moneyhas been invested in environmentalprojects managed by Climate Care tooffset nearly 19 tons of CO2 emissions.

NISP (National Industrial SymbiosisProgramme)DENSO’s partnership with NISP hasits origins in 2005 when we wereworking towards zero landfill.

Recently NISP has issued “The pathway to a low carbon sustainableeconomy”. DENSO features as oneof the case studies that helped theprogramme to divert over 1.8 milliontons of hazardous material from disposal into productive use.www.nisp.org.uk

8

Energy saving ideas 2009competitionAs part of our World EnvironmentalWeek eco activities in June, we ranan energy saving ideas competition.It was the second year running, andthe response was very positive. Wehad 31 entries in total and each entrywas given a “Powerdown” (intelligentplug) to save energy at home byautomatically switching off all peripherals when the computer isswitched off.

The winning ideas, which will all beimplemented, this year were:

• Provision of automatic switch off lighting in Spares mezzanine, Toyota& EO5 Canopy, PC Hot Corner andTraining Room. By Alan K. Williams.

• Reduction of car park lighting during night shift. By Adrian Woodcock.

• Express usage of energy per product output in every line to facilitate setting targets and raise awareness. By Derek McKindley.

The winners were given £25 to beadded to their clock card for cashlessvending, and a real time energy display monitor, which measures theelectricity used in the house helpingto reduce energy bills.

Envirowise Water AuditIn the last few years there has beenan excellent partnership with the ENVIROWISE programme. DENSOhas done a video case study that hasbeen showed in many environmentalevents. DENSO has been presentedas an example of best practice in wastemanagement and resource recovery.In 2009 the main collaboration came byhosting the Water Audit with the participation of 10 businesses in Telford.

To encourage other companies totake action, we welcomed ten othermembers of the BESST group to ourpremises to follow the audit as it happened.

Henry Suzuki, then Managing Director, presenting the energy monitors to thewinning Associates.

Associates with the Christmas cardscollected for 2009

DENSO’s Climate Care certificate2009 for offsfet of 18.93 tons of CO2

DMUK’s Environmental Officer with theBESST group members visiting for theEnvirowise audit.

BESST (Business EnvironmentalSupport Scheme for Telford)BESST is a partnership betweenlocal private and public sector businesses. Their role is to assistbusinesses to improve their environmental performance, in orderto boost competitiveness and reducetheir impact on the environment.

DENSO is part of the steering group.The total membership now includesmore than 80 local companies.

Since April 2009 BESST has organised7 events covering a number of relatedtopics. DENSO hosted 2 events andpresented a case study in another.

Staff engagement and change management, BESST event. Whilst many businesses recognise thebenefits of devising strategies forreducing waste and becoming moreresource efficient, difficulties can oftenarise during the implementationphase of these strategies.

In April BESST organised the event“Employee engagement and ChangeManagement” in Telford Campus(Wolverhampton University). Almost50 delegates from 24 companiesattended.

Our Environmental Officer, presentedthe experiences at DENSO on howto engage employees on environmentalinitiatives (Christmas cards and WorldEnvironment Day).

Environmental Seminar and Workshop65 people from strategic Shropshirecompanies came together inFebruary to discuss waste in theLord Hill Hotel in Shrewsbury. Theevent was arranged as part of theAWM (Advantage West Midlands)Business Engagement Programme,delivered by Shropshire Chamberand sponsored by NISP and ENVIROWISE. DENSO presented howcost saving can be achieved by implementing resource efficiencyacross the business.

ECO

AWA

REN

ESS

& O

RG

AN

ISATIO

NS

World environment weekWorld Environment Day (WED) wasestablished by the UN GeneralAssembly in 1972 to mark the openingof the Stockholm Conference on theHuman Environment. Commemoratedyearly on 5 June, WED is one of theprincipal vehicles through which theUnited Nations stimulates worldwideawareness of the environment andenhances political attention and action.

At DENSO for the last couple ofyears we have held a week of activitiesto commemorate the event including:

Energy SavingThe switch off of machine lighting, fansand electrical appliances that could beturned back on without any delay atall following breaks.

Sustainable TransportDuring the week we also launched the“Bike2work” scheme which couldsave a maximum of 43% of the valueof a bicycle. So far, the scheme hasseen a high level of take up.

16 Associates took part in a “Smarterdriving course”. The purpose of thetraining was to provide tips and skillsto improve eco-driving in order tosave fuel and CO2 emissions.

As a result of the training and applyingtheir new skills, the delegates wouldsave, on average 15% on fuel, equalto £3,802 of savings and 10.1 tonsof CO2 each year.

The BESST EventThe event was hosted during this weekfor the “Ensuring Legal Compliance –Legislation update”. DMUK had 42attendees from 27 different businessesin Telford.

Sustainability West MidlandsSustainability West Midlands is a nonprofit organisation that provides sustainability advice to leaders of theWest Midlands. DENSO is one of thecase studies in their website to promotesustainability related award winnersand good practice in the region.Recently DENSO has been invited tojoin as a member of the board.sustainabilitywestmidlands.org.uk

9

“Project Green” - Keele UniversityKeele University Sustainable BusinessProgramme, offered support to businesses and graduates via a fullyfunded initiative called Project Green.

Through this initiative, we had thesupport of 2 graduates:

Rashmi Patodi, who did an excellentproject on the eco-garden. With thesupport of the EnvironmentalChampions and Shropshire WildlifeTrust, she drew the first draft of oureco-garden (including stages of theproject, features such as paths and sitting areas and possible habitatsthat may be developed).

Steve Williams, whose support onwater management was very professional. He improved an existingwater mapping, he carried out a massbalance and he did a review of thecurrent water drainage. In addition hecompleted some outstanding actionsfrom the ENVIROWISE water audit.

Low carbon innovationIn March the 10th, DENSO took partin a “Low Carbon ManufacturingForum” in the National MotorcyclingMuseum in Birmingham. OurEnvironmental Officer led a discussiongroup with the topic “Towards ZeroWaste in Manufacturing – The Art ofthe Possible”. The discussion groupfocussed on the lessons learned byDENSO to achieve zero landfill.

SBEN EventOur environmental Officer also attend-ed a meeting of the StaffordshireBusiness and Environment Networkgroup in 2010 where his presentationon ‘Improving you resource efficiency’was well received.

As a result SBEN donated to DENSOenough money to allow us to offset30 tonnes of CO2.

In partnership with:

Associates collecting donations forCO2 emissions offsetting

DMUK launch their ‘Bike2work’ scheme

Associates at the Hybrid car display

DENSO case study on the sustainabilityWest Midlands website

DMUK’s Environmental Officer withthe BESST Chairman, and a representative from Envirocomms.

DMUK’s Environmental Officer, ManelRoura presenting ‘how to engageemployees on environmental initiatives.

Attendees of the EnvironmentalSeminar held in Shrewsbury

Keele University Graduate, Rashmi Patodi.

Keele University Graduate, Steve Williams.

DMUK EducationThe skills agenda is paramount for any large organisationand for DMUK it is no different.

Our approach can be split into 2 main areas of activity, onethat focuses internally at our Associates and their developmentand one, that focuses externally and looks at how we supportthe skills agenda at a local and regional level.

Internal ActivityAs one of the first companies to achieve the Investors inPeople standard back in 1995, we have retained it eversince. This means that we recognise how important ourpeople are in securing our objectives. Our internal activities forskill development are wide ranging and affect different levels and groups of our Associates in different ways.

For most of our Associates working in production theirneeds are driven by the complexity of the manufacturingprocess. As a consequence the majority of this training isdelivered ‘in plant’ or ‘on-the job’ and we have a team offull time manufacturing trainers that support the developmentof these skills. Other common training needs relate tohealth and safety, specific licences required to use mobileplant, fork lift trucks, or internal cranes. We also providetraining for first aiders, and working consultation grouprepresentatives. NVQs, or vocational qualifications remainan integral part of our development programmes withmany hundreds of NVQs having been awarded to DENSOAssociates over recent years.

External Activity Our focus is to support educational initiatives in the widercommunity. Much of the work that we have done over theyears, and continue to do, is in relation to schools and university collaboration. We have a proven track record asa host company for work experience and we work in partnership with the local Education Business Partnershiporganisation. We provide work experience programmesfor local students and support business and educationinteractions locally to ensure continuous improvement ismade. We have supported teacher training and teacherprofessional development activity, and the development ofindustry qualifications. Currently DENSO chairs theEmployment and Skills Board for Telford and Wrekin andwe are working with the UK Commission for Employmentand Skills and the City Region Employment and Skills Board.

10

STEMNet Case StudySTEMNet stands for Science,Technology, Engineering and MathsNetwork. STEMNet is a governmentfunded organisation that works withschools and colleges to promote thefour aspects of the curriculum andhelps students understand the contextin which they are used in industry.

To support the local STEMNet centre,we worked with the EducationBusiness Partnership to develop acase study of DENSO ManufacturingUK Ltd, so teachers could use theresource to enlighten students onhow classroom topics are used in areal life setting. The case study is intwo parts. Part one explains DENSOManufacturing UK Ltd and what wedo here and part two details typicaljobs within the business and thequalifications and experience you arelikely to need to work in those jobs.

The Case Study, along with a factorytour, is an excellent method to explainmanufacturing and engineeringprocesses and allows students tosee the bigger picture.

National Vocational Qualifications and Matrix TrainingNational Vocational Qualifications(NVQs) are acknowledged as thepractical method to combine workbased learning with a nationallyrecognised qualification. NVQs havebeen an integral part of DMUK’straining strategy and, in partnershipwith Matrix Training, NVQs have beendelivered on site for over 10 years.

In 2009, 33 Associates gained NVQLevel 2 awards with Matrix Trainingand there are currently 64 Associateson programme.

Our Apprentices Daniel Key andJohnathan Frendo have completedtheir Performing EngineeringOperations Level 2 award and arenow enrolled on an engineering level3 award. Fourth year ApprenticesAaron Taylor and Austin Hayward,have also completed their NVQ3engineering awards.

Apprentices receiving their certificatesfrom DMUK’s Head of HumanResources and Information Systems

DENSO Education Business Partnership case study

SC

HO

OLS

& ED

UC

ATION

DOJOs & Standard Work ConfirmationTo support the aim of a committedand dedicated workforce who are prepared to take the initiative and gothe extra mile to get the work done,DMUK created the role of dojo trainer.We currently have three full time dojotrainers, (Ruth Bailey, David Fall andJane Hollyhead) and they each support an operational business area,covering Thermal Systems, Pipe &Hose and HVAC Assembly.

Everyday our dojo trainers’ attentionis firmly focused on strengtheningshop floor fundamental skills bydeveloping the know-how and theknow-why for all our Associates.

At the beginning of 2010 the role ofdojo trainer evolved and expanded tochampion DMUK’s Standard WorkConfirmation (SWC) and Quality Mindactivities.

SWC is a structured formal way ofworking. It is designed to focusattention on the process, and alsoinvolve the Associate doing the work.To take ownership and think aboutthe little things they can do that willimprove their working environment.

Productivity Kaizen Course (Step 1) To develop Kaizen specialists usingstandardised training material and fostera kaizen culture throughout DENSOglobally. The aim is to deploy the chosenkaizen forces all over the world andto date 193 Associates have attendedthe training and used what they havelearnt back at their home plant.

This was the third time that the STEP1 course had been hosted by the TIEteam at DMUK and it involved a lot ofcareful planning and preparation toensure everything ran smoothly overthe 12 days.

MURAN Ideas contestAssociates with novel and unusualideas are asked to submit it to acommittee for scrutiny. If the committeebelieve the ideas have potential, theyask the Associates to create the ideaand take it to Japan and exhibit it. This year, there have been a recordnumber of ideas submitted, withseven coming from DMUK Associates.

Press Regulations TrainingTo make sure we get the most out ofour equipment, it makes sense totrain the Associates to work themachines efficiently, to get the verybest performance from them. Withthis in mind, we have utilised theskills of David Cheyne. David is anexpert on Programmable LogicControllers (PLCs) and robotics andhas delivered specialist courses toupskill Associates in the use of ourrobots. In the past 12 months, Davidhas also attended Power Press trainingand Abrasive Wheels training and heis now designing and deliveringcourses in these specialist areas, toensure Associates are working safelywith this equipment.

Over the period April 2009 to March2010, David delivered 47 courses,which equated to 183 man daystraining.

Jikoutei Kanketsu (JKK)“Built-in Quality with Ownership”Training and development of peopleremains at the heart of DMUK's drivetowards being a safe, top quality andenvironmentally sound business.During the last 2 years we have beenupskilling all of our Cell Leaders andTeam Leaders in TPS (ToyotaProduction System) Managementpractices. This ‘hands on’ traininghas emphasised leading your team,controlling your area and moving forward through kaizen activities. Theprogramme is called the Monozukuriprogramme, meaning "Make goodpeople to make good parts".

In addition, our goal to become andremain a single PPM Quality supplierto our customers has led us to trainnearly 200 of our Associates, atTeam Leader level and abovethroughout all areas of the company,in Jikoutei Kanketsu (Built in Qualitywith Ownership). This intensive training activity emphasised "personalownership" at a specific and practicallevel. All other Associates havereceived a bite-sized version of thistraining, Monozukuri, the emphasis ison applying the learning in practicalways "back at base".

Work Experience Diaries for Telford &Wrekin School PupilsUntil now, the schools in Shropshireand Telford & Wrekin have devisedtheir own work experience diariesand students attending placementsat DMUK have arrived with a differingset of forms and expected outcomes.

As part of the link between theEducation Business Partnership andDMUK, one of our Associates, JulianNicholas, attended a working partyto review the content of several work experience diaries and helped decideon a standard content.

Safety Rescue TrainingWorking at heights and working inconfined spaces are two of the highest risk activities at DMUK. TheCompany has completed a programmeof training for both working and rescuein these situations and have purchasedrescue aids to support Associateswho undertake these activities.

As part of our ongoing commitmentregular ‘practice rescues’ take placeto ensure the appropriate knowledgeand skill of our Associates.

Inside Manufacturing Enterprise AwardsIn appreciation of the effort expendedin developing and maintaining linkswith schools, colleges and universities,DMUK were awarded a certificaterecognising their contribution to education at a prestigious event atthe Think Tank in Birmingham inJune 2009. Despite the current economic climate, DMUK continue to support these types of activities,acknowledging the future benefit tothe local and regional economy.

PEN Graduate Placement SchemeIn September 2008, three undergraduates joined the Companyfor a structured training programmethat linked to the Institute of MechanicalEngineering training requirements.When they returned to university inSeptember 2009, we kept their detailson file, just in case a suitable vacancyarose, and as a result Tyson Mathurinewill be returning to DMUK permanentlyin the PEN Department.

11

The New Shropshire and Telford &Wrekin Work Experience Diary

Confined spaces training

DMUK’s Senior Technical TrainingOfficer receiving DENSO’s recognitioncertificate for contributions to education

New Associate Tyson Mathurine

David Cheyne, Programmable LogicControllers and Robotics expert

DMUK’s DOJO trainers

Trainees and trainers who participatedin the Kaizen Production course

Local Governanceand CharitiesAs you have already seen, a key statement within our visionis to positively contribute to society. This is reinforced by astrong corporate spirit to do so, and all around DENSO youcan find many examples of our companies making a difference.DENSO has recently nominated its anniversary date, the 16December, each year to be a Community Service Day.

DENSO’s plant in Telford has a long history of working tosupport the Community with its origins starting with ourplant’s construction back in 1990-1992. Since that timeDMUK has worked in a focussed way to identify key localorganisations who are considered to be best placed to partner with us.

We have developed a strong relationship and are buildingeach year a legacy endowment fund (the DENSO Communityfund) for grant making with the Community Foundation forShropshire and Telford. A member of our senior managementteam has, for several years now, participated in the 'grantspanel' which is a committee of volunteers and Foundationstaff who review all grant applications and consider themagainst the grant criteria to determine the level of grantawarded. We have worked closely over the years with, inparticular, Severn Hospice and with Hope House Hospice.

Our involvement spreads beyond even the more formal ofrelationships. We continue to support, as best we can, localbusiness to business collaborative groups. We support othercharities such as the Air Ambulance through our recyclingactivities and of course we offer matched funding to ourAssociates who carry out fund raising activity.

DENSO is awarded bronzeDMUK has just been awarded aBronze Government Quality Mark fortheir recession busting WorkplaceGiving scheme.

Despite the doom and gloom of theeconomic climate, Associates atDMUK have bucked the trend asmore of them are giving to the charitiesand causes closest to their hearts,straight from their pay.

The Bronze Quality Mark is awardedto organisations that actively promoteWorkplace Giving to their employees.

Workplace Giving is a simple, tax efficient, scheme which allowsemployees to give to any charity theychoose by having a deduction takenstraight from their gross pay.Workplace Giving is also known asPayroll Giving or Give As You Earn.

Community SponsorTelford and Wrekin operate a communitysponsor programme and DENSOhas participated in this scheme formany years. Look out for our logo onthe roundabout on the A442 at Trench!

Severn HospiceOver the years we have found manydifferent ways to support the SevernHospice. In the last 12 months wehave donated 24 jointly-embroideredheavy-duty fleeces to the Hospice asa Christmas present for their staffand especially their volunteers whowork outdoors in all weather tendingthe gardens of the Hospice.

We run ‘Book People’ events regularly throughout the year whereour Associates can purchase aunique range of books. Proceedsfrom this event support a donation tothe Hospice. We have also supportedtheir ‘Midnight walks’ by loaninghigh-visibility jackets to keep theirvolunteers safe and have supportedother seasonal fundraising events,such as the ‘Lights of Love’ event.

12

Proud supporters of the Severn Hospice

DENSO Manufacturing UK is committed to assisting theSevern Hospice through fundraising activities, raising awarenessthroughout the workforce and helping the Hospice continue toserve Shropshire and the surrounding communities.

DENSO putting the community first.

DENSO Severn Hospice Lights ofLove advert

Generating cash for Hope HouseHow do you motivate your workforceto fill in an important survey? Well youcould try a financial inducement.DENSO, offered to donate £1 tocharity for every Associate who completed an Employee Opinion Survey.

DENSO’s Working ConsultationGroup chose The Hope HouseChildren's Hospice as the beneficiary.As a result 643 Associates completedand returned their survey booklet (animpressive 92% return rate). Thismeant that £643 was raised for HopeHouse and DENSO’s WCG presenteda cheque for that amount to RachelThomas, representing Hope House.Also in attendance, pictured, wereAnne Faris and Keith Charlesworth,two directors of AF Associates (anindependent Human ResourcesConsultancy specialising in employeeopinion surveys and staff surveys).

We are proud of how our Associatessupport local charities, environmentaland community projects. Many givenot just money, but their leisure timeto work on DENSO sponsored localprojects.

Shropshire Chamber of CommerceFor many years DENSO has been aproud member of the ShropshireChamber of Commerce and in 2010sponsored the ‘Best Employer’ category of the Shropshire BusinessAwards.

Christmas Tree chosen charitiesThe annual Christmas tree competitionwas held, where Associates areencouraged to work in teams to create a festive tree. There were 16impressive entries to the 2009Christmas Tree Competition. Somefollowed the traditional tree format,other teams used a bit of poeticlicense and created masterpieces incard, wire and technical wizardry.

The rewards for the winners changedtoo, and to show a more charitablespirit in the festive season, the threewinning teams were each given acheque for £100 to donate to theirchosen charity, as well as vouchersfor themselves to recognise theirefforts and ingenuity.

Four of the senior managementteam, Henry Suzuki, Mark Hayward,Koji Yamaguchi and Alan Taylorjudged the competition and werepleased with the quality and effortexpended. Alan Taylor commented“It’s been a tough year for DMUK, butthat has not diminished the collaborationby all Associates both in their day today jobs and here in the ChristmasTree Competition”.

1st prize Heater Core chose todonate to The Severn Hospice. 2ndprize Quality Assurance chose AirAmbulance and 3rd prize ProductionControl chose Hope House Hospice.

HMP ShrewsburyDuring 2009 a member of the HRteam supported a series of activitieswith HMP Shrewsbury, aimed at supporting the rehabilitation ofoffenders back into sustainableemployment. This included helpingoffenders prepare themselves forwork and also providing access programmes to give ex-offenders realemployment opportunities within ourworkforce.

DENSO host the CommunityFoundation award presentationsDENSO played host to the CommunityFoundation’s recent awards day.

The Community Foundation in Telfordwas established in 1992 and is currently presided over by the LordLieutenant of Shropshire and a distinguished group of Trustees. Inaddition it has held, since September2007, the CFN Quality Accreditation(from the Community FoundationNetwork) to standards endorsed bythe Charity Commission.

The Community Foundation exists topromote any charitable purposes forthe benefit of the community inTelford and Wrekin and Shropshire. Inparticular, they are concerned withthe advancement of education, theprotection of good health (both mental and physical) and the relief ofpoverty, distress, disability or sickness.Their vision is to help make communities in Shropshire andTelford better places in which to live.

At the end of the awards Mike Lowe,Chair of the Community Foundation,thanked DENSO for all their help overthe years and for hosting the event."It's all about networking, we couldn'tmake the grants we do without helpfrom companies like DENSO, whichmeans so much to so many deservinglocal causes."

Three groups were presented withgrants from the Community Foundationand DENSO made their yearly donationto the Foundation of £10,000.

£1,000 presented to Bella Sohi fromAge Concern Telford.

£1,500 presented to Kirsty McClainfrom the Shropshire Youth Choir.

£2,000 presented to Grace Tongfrom the UK Telford Chinese School.

In partnership with:

LOC

AL G

OVER

NA

NC

E & C

HA

RITIES

13

DENSO presenting their donation tothe Community Foundation

Community Foundation donation toAge Concern Telford

Community Foundation donation tothe Shropshire Youth Choir

Community Foundation donation tothe UK Telford Chinese School

Associates with their winningChristmas tree entry

Christmas tree winner presentationto Severn Hospice

Christmas tree winner presentationto Air Ambulance

Christmas tree winner presentationto Hope House Hospice

DENSO WCG presenting a chequeto Hope House for £643

Healthy Eating - Sky 1 at DMUKOur canteen and our catering teamhave for many years won ‘HealthyEating’ awards, and during 2009found new ways of bringing healthyeating to our workplace. The teamhave worked hard to improve choiceand even the ‘raw materials’ havebeen selected to target healthiermeals and vending choices.

DMUK were asked to participate in aprogramme for Sky One, called FatFamilies which was screened on 6thJanuary 2010.

No nonsense weight loss expertSteve Miller worked with ‘supersize’families to transform them from ‘fatties’ to ‘fitties’. In each episode,the tough-talker took up residencewith a family, breaking bad habitsand introducing radical new regimes.

DMUK worked with Steve to helpeducate the Cuff family from Telfordon portion control. The family andTV crew came into the canteen toserve food to Associates in thequantities that they would normallyeat themselves. The portion sizeswere so large, that none of theAssociates were able to finish theirmeal. It was then time for the Cufffamily to see a ‘normal’ portion sizeand to understand how their eatinghabits needed to change.

Traditional Christmas lunches atDMUK, December 2009This year all Associates were invitedto receive a complimentary Christmaslunch served by the DMUKManagement team.

This took place over three days withall day shifts receiving a traditionalChristmas lunch or vegetarian optionand the night shift having aChristmas style buffet.

This has been a long established tradition at DMUK which had had tobe abandoned as our workforcegrew so large. The recent reductionsin the workforce have enabled thistradition to be reinstated.

Safety managementand wellbeingSafety and Associate wellbeing are fundamental values forDENSO. In DENSO Group these are considered as an atarimae (a normal condition, something ordinary that may betaken for granted) but of course they are so important that agreat deal of effort is made in ensuring the safety and wellbeingof our Associates and those other visitors and workers whocome through our doors.

For DENSO, their safety first values run deep in the organisationand their spirit for safety stems from a catastrophic incidentin our Japanese Anjo plant around 30 years ago when anexplosion killed a number of our Associates. Since that timeDENSO’s global focus on assuring safety in our operationshas been robust with detailed Global Safety Standards inplace and a global accident management system (SafetyMark) also in place for a number of years.

The Company regards the promotion of good Health andSafety practices as a fundamental right of our Associates atall levels throughout the Organisation. All of our activities arecarried out with full regards to Health and Safety legislation.We aim to design safety into our processes to prevent injury orrisk to health or well-being.

At DMUK our history shows a strong safety performance inthe first 5 years of our life as the plant remained very smallwith honours such as a Sword of Honour from the BritishSafety Council among many successes.

Our focus in recent years has been to reinforce our safetyconditions in the plant as our accident levels had increasedas the plant expanded and a series of restructurings tookplace. In recent years, as you can see in this report, our safetyrecord has improved steadily and we retain our accreditationsto OHSAS 18001 (safety management system) and work collaboratively with members of the Health and SafetyExecutive as opportunities allow.

Wellbeing centres around our occupational health frameworkwhich has steadily expanded since 2003. We work in closepartnership with the team at Telford Occupational HealthServices with our onsite Nurse, access to a Company MedicalOfficer, Physiotherapist provision and also with CBT Servicesfor counselling and mental health CBT treatment programmes.

14

The Sky One film crew at DMUK

The Cuff family who feature in theSky One ‘Fat Families’ programme

Associates enjoying their Christmas meal

DMUK Associate Social ClubOne of the lasting legacies of whenDMUK was a small ‘family’ in theearly1990’s has been our Social Club,The Ace of Clubs. This member basedgroup supports a wide range of socialevents throughout the year which arealways well attended. Each year thisculminates in a massive prize draw inthe last few days before Christmas.

DMUK BenefitsProfessional Fees: Associates whopay for professional membershipscan obtain an expense concessionfrom HM Revenue & Customs.

Uniform cleaning: Associates areable to claim tax relief on the maintenance and cleaning of theirCompany uniform when they have tolaunder it themselves.

CAFE: Canteen Allowance forEmployees provides the facility to allAssociates for meals and refreshmentsto be supplied free of tax andNational Insurance.

Bike2Work: a salary conversionscheme implemented in July 2009which allows Associates to purchasea bicycle at discounted rates throughtheir salary over a 12 month period.

Childcare Vouchers: Since 2005DMUK has offered a salary conversionscheme to help Associates with theirchildcare costs. Associates can purchase a specific amount ofvouchers to pay for registered orapproved childcare.

Health Care Cash PlanThis benefit links in to the full rangeof welfare support services providingan opportunity to utilise a range oftherapies and private consultationsthen claim the costs back. DMUKprovides level 1 single cover for allAssociates as a totally free benefitwith the Company also paying anytax liabilities that arise.

Associates can also upgrade theirbenefit for themselves or their partners, however no upgrade isrequired for children as they areincluded free.

WELLB

EING

& O

HS

MA

NA

GEM

ENT

Senior Manager Safety PatrolsWeekly patrols are completed eachweek by the MD, senior managersand the HSE department. The patrolsare carried out at random in all production areas with the aim of identifying opportunities for improvement in HSE management anda share of good practice activitiesacross both DMUK and other groupEuropean companies.

Occupational HealthThe Occupational Health Departmentat DMUK offers a variety of servicesfor DMUK and it’s Associates. Our fulltime Occupational Health Nurse supports both the HSE and HRdepartments in maintaining a safeand healthy working environment forall our Associates.

Physiotherapy ProvisionIn order to support Associates withmuscular complaints and as part ofour Occupational Health Provision,DMUK provides a physiotherapist onsite for 1 day per week.

Appointments made through theOccupational Health Nurse limit theamount of time away from work thatAssociates would alternatively needto take for off-site treatment.

Drugs Dog deploymentAs part of our commitment to providea safe and secure working environmentDMUK have been working with K9Support Services Ltd to provide drugdog deployments on site at regularintervals. This is an integral part of ouralcohol and drugs policy framework,most Associates welcome this activityand enjoy seeing the dogs and handlers.

Behavioural Safety TrainingProgrammes are Associate led sessionsto identify the unsafe behaviours thatcan contribute to both accidents andnear misses.

The ‘Key Safe’ behaviours are thendisplayed in the working area andAssociates monitoring each otherscompliance.

CMC Resource Centre SupportingAssociatesIn 2008 and 2009 as the impact ofthe recession was felt in the carindustry, DMUK reached a point inFebruary 2009 where DMUK had toundergo a restructure of our businessand unfortunately a number of ourAssociates were affected.

DMUK created a Career ManagementConsultants (CMC) resource centreto assist those Associates affectedby redundancy. They helped over 118Associates and provided advice andsupport to each of them rangingfrom interview skills training, to CVpreparation.

When we checked 3 months afterthe end of the programme, around70% of Associates had successfullyfound a new direction either inemployment, training or even selfemployment.

Job Centre Plus were hugelyimpressed by the support that DMUKoffered its Associates through CMCrecognising that this level of investmentis second to none from any employerthey have seen before.

OHSAS 18001 Safety ManagementSystemDMUK is accredited to the OHSAS28001 Safety Management SystemStandard. This standard has strictrequirements for how companiesmanage health & safety in the workplace. Audits by an external,authorising body are completedtwice per year and re-certification isreviewed every 5 years. DMUK isproud to have maintained this standard since first awarded in 1999.

British Safety Council CertificatesOver 100 Associates have completed the British Safety CouncilLevel 1 Certificate in Health & Safetyat Work as part of our ongoing commitment to H&S training in theworkplace.

15

DMUK’s Career Management team

OHSAS 18001 certificate

DMUK’s Managing Director completingSenior Manager Safety Patrols

`Associates take part in theOccupational Health day.

Drug dogs and their handlers at DMUK

DMUK Associate Benefit booklet

1990 1992 1993 1994 1995 1996 1997 1998 1999 2000Over the past 20 yearsDMUK has achievedmany milestones andcontinued to growthrough the developmentof production and procedures.

Establishment of Nippondenso Manufacturing Ltd. Construction

commencesOpening Ceremony - opened by

Mr Michael Heseltine MP

Operations commence. Receive Business Commitment to

the Environment Award

Accredited to BS EN ISO 9002.Receive British Safety Council

certificate, Rover Supplier of theYear (Bronze)

Receive British Safety Council 5 StarAward, Sword of Honour, achieve

Investors in People & BS 7750

Rover Supplier of the Year (Gold),Toyota Quality Award, ISO 14001 achieved

Groundbreaking ceremony for phase 2 expansion.

Toyota Quality Award, RoverSupplier of the Year (Silver). Donation to CARE group to

create ECO Garden in Hadley.1,000,000 HVAC

unit produced

Awarded DENSO Corporation’sGold Award for top performing

Overseas group Company.First to achieve QS 9000, ISO

9002 and ISO 14001

Toyota Supplier Quality Award. SMS 8800 Safety Management

System achieved, Energy Efficiency Award

TS 16949:1999 achieved. Ford Q1 achieved.

Establishment of WorkingConsultation Group.

DMUK team win NSQT Competition Award

Toyota M

16

Host the Quality Circles.Toyota Superior Performance

Award for Quality.Jaguar Land Rover BodyEngineering Quality Award

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Supplier Awards for Costanagement & Quality

Donation to Telford & WrekinCommunity Trust to mark 10 year

anniversary of DMUK

Toyota Supplier Award for CostReduction and New Project

Management

DENSO Corporation CEO Fukaya-san visits to launch Vision2015. DMUK commits to become

zero-landfill

DMUK creates “named fund” with Community Foundation for Shropshire and Telford.

Radiator production commences

Zero Landfill achieved. Finalist awards for National

Recycling Awards, Awards forExcellence in Recycling& Waste Management.

Phase 3 expansion completed

Jaguar Land Rover Quality Award.Toyota Supplier recognition award.Apprentice of the Year Award and

Regional Learning Award.Achieve Investors in People

17

HRH the Earl of Wessex visit.Global Facilities Management Team

of the year (unofficial)OHSAS 18001.

Toyota Superior Performance Award for Quality

Green Globe for waste reduction

Toyota Superior Performance Award for Quality.

European Facilities ManagementTeam of the year

DM

UK

HIS

TOR

Y

18

Health & Safety Metrics

04 05 06 07 08 09

Lost Time Accidents 26 16 20 38 14 14

All Accidents 172 165 171 205 137 102

Near Miss Forms 1288 582 521 386 460 214

04 05 06 07

26

16

20

38

0

5

10

15

20

25

30

35

40

08

14 14

09 04 05 06 07

172 165 171

205

0

50

100

150

200

250

08

137

102

09

04 05 06 07

1288

582521

386

0

300

600

900

1200

1500

460

08 09

214

Near Miss Forms

Health & SafetyResultsSafety performance is monitored at a globallevel within DENSO Corporation. At DMUK ourmost important measures are set out below:

• Lost Time Accidents • Minor/Trivial Accidents• All Accidents• Near Miss (number raised per month/year)

Our major focus in 2008 was to launch abehavioural safety programme to recover anexcellent safety condition after a disappointingdecline in our Safety Results during 2007.

We continue to expand this behavioural safetyprogramme after its 2008 pilot was so successful.

Lost time accidents are the number of occasions where, as a result of an accident,an Associate loses time from work (other thanthe day of the accident).

The metric ‘all accidents’ includes every accident where treatment is required.

As a Company we encourage all Associateswhen they find an unsafe condition or see adangerous situation to record this using a nearmiss form. These help us to proactivelyaddress conditions that could lead to a moreserious incident.

Lost Time Accidents All Accidents

04 05 06 07

25.823.8

22.521.1

0

5

10

15

20

25

30

08

22.6 22

09

408

190

0

666

0

100

200

300

400

500

600

700

800

0

04 05 06 07 08 09

0

0.72

0.340.29

0.0

0.2

0.4

0.6

0.8

1.0

0.85

0.230.15

04 05 06 07 08 09

13.1612.55

9.87

0

5

10

15

20

7

16

6

04 05 06 07 08 09

Environmental Metrics

04 05 06 07 08 09

Tons carbon / £m Sales 25.8 23.8 22.5 21.1 22.6 22

Landfill Waste (tons) 408 190 0 0 0 0

Hazardous Waste (tons) / £m sales 0.85 0.71 0.34 0.29 0.23 0.15

Total Waste (tons) / £m sales 16 13 12 10 7 6

Top 10 Wastes (tons)

Waste type 05 06 07 08 09

Cardboard 872 957 1060 642 437

Aluminium Scrap 594 845 627 337 348

Wood Waste 576 172 180 134 120

Steel Scrap 154 141 211 129 114

Filter Cake (from WWP) 113 77 61 52 36

Flux powder 19 15 17 7 4

Hard Plastic 101 163 43 43 55

Paper 33 36 32 27 17

Rubber 19 15 10 6 6

Plastic Film 17 24 27 33 23

Waxed Paper 16 17 19 9 4

19

Total Waste (ton)/£m sales

EnvironmentResultsOn this page we profile some of our key datathat outlines our achievements over recent years.

Our performance is very sensitive to changesin both sales and volume. A drop in sales maybe caused by price reduction and productionvolumes may have actually increased.

In order to best visualise our improvementeffort we display our results against sales(£million), this smoothes out the effect ofvolatile sales amounts.

In 2007 we started to link the efforts of ourAssociates to an organisation called ClimateCare. Through this link we were able to offset100 tons of carbon during 2007.

This has been followed by offsets in 2008 and2009 of around 80 tons in each year.

Tons Carbon/£m Sales Landfill Waste (ton)

Hazardous Waste (ton)/£m sales

FACT: We now have over 30 separate waste streams

408

190

0

525

0

100

200

300

400

500

600

0

04 05 06 07 08 09

0

590

410 407435

404

Water consumption/£m Sales

Social ResultsIn our Company having a stable (low turnover)and motivated workforce is important. WithinTelford the pay rates are quite low and unemployment at around 4.5%. The Telfordworkforce is, and always has been, a diversecommunity.

Our diversity data fails to take account of theseveral hundred Associates that have joinedus from the new member states in theEuropean Union, they are described in theWhite category.

Our business has reduced to the economicimpacts of 2008-2009. We have respondedby reducing our workforce as can be seen inthe charts on this page.

We have been able to reduce our absencelevels by strengthening our absence management policy and management interventions.

*Associate turnover adjusted to exclude Companyheadcount reduction activity

20

04 05 06 07

208 202 210

241

0

50

100

150

200

250

196

08

170

09

Social Metrics

04 05 06 07 08 09

Sales (£m) 208 202 210 241 196 170

Number of Associates 1605 1471 1457 1448 889 786

Associate Turnover (%)* 26.3 20.2 15.7 15.7 13.8 9.4

Associate Absence (%) 5.5 5.2 6.0 5.7 4.3 4.2

889

16051471 1457 1448

0

500

1000

1500

2000

04 05 06 07 08

786

09

25.2*

13.8

26.3

20.2

15.7 15.7

0

5

10

15

20

25

30

04 05 06 07 08

28.9*

9.4

09

4.3

5.55.2

6.05.7

0

1

2

3

4

5

6

04 05 06 07 08

4.2

09

Ethnicity

Gender

Male 70.2%

Female 29.8%

White 71.3%

Unknown 0.3%

Other Asian 1.5%

Black African 1.5%

Black Caribbean 1.9%

Black other 0.1%

Chinese 0.1

Indian 17.7%

Other 3.9%

Pakistani 1.3%

Sales (£m) Number of Associates

Associate Turnover (%) Associate Absence (%)

AssociatesSurvey ResultsSince 2006 we have established an annualAssociate Satisfaction Survey which hasbecome a useful diagnostic tool for us.

There are in excess of 65 questions focussingon key issues such as job satisfaction, management style and culture, communicationand Company values. Some of the key resultsare shown below.

Survey Response is the number of responsesreceived from all Associates (permanent andtemporary).

Overall Satisfaction is an overall measure ofthe positive response in the survey across allquestions.

Company Reputation is the rating given tothe statement - the Company has a good reputation in the local community.

Customer First is the rating given to thestatement - we deliver on our premises tocustomers.

The 2009 survey was delayed until April 2010as a result of our restructuring activities during 2009.

21

Associate Survey

06 07 08 09/10

Survey Response (%) 63 70 69 92

Overall Associate Satisfaction (%) 66 65 66 63

Company Reputation (%) 73 73 72 66

06 07

6369

0

20

40

60

80

100

08

70

92

09/100

10

20

30

40

50

60

70

80

66 65 66

06 07 08

63

09/10

73 73

0

10

20

30

40

50

60

70

8072

06 07 08

66

09/10

Survey Response (%) Overall Associate Satisfaction (%)

Company Reputation (%)

0

20

40

60

80

100

7479

84

06 07 08

85

09/10

Customer First (%)

06 07

6369

0

10

20

30

40

50

60

70

80

08

70

74

09/10

747375

The Company cares about my health and safety at work..

06 07

6369

0

20

40

60

80

100

08

70

84

09/10

868682

I am involved in recycling activitiesat work..

06 07

6369

0

20

40

60

80

100

08

70

88

09/10

918790

The Company is committed to protecting the environment..

Queensway Campus, Hortonwood, Telford TF1 7FSwww.denso-europe.com Tel: 01952 608400

DMUK’s printers have FSC recognition. FSC is the Forest Stewardship Council – an organisation which promotes responsiblemanagement of the world’s forests. This document has been printed on recycled paper using vegetable-based inks.