NISSIN REPORT
2022
Company Profile / Sustainability ReportNISSIN ISSIN
Adapt to Changes, Create Changes

Aiming to become a company creating a sustainable future through reliable technical capabilities where
each of employees can realize the contribution to society
in an environment that respects diverse values and encourages new challenges

CONTENTSCONTENTS / Editorial Policy

Feature: Promoting
Sustainability Management

13

Our Commitment to CSR
Initiatives for Global
Environmental Conservation

25

Partner Trust

45

31

Employee Mutual Trust

47

03

Review of Operations by Segment

Nissin Electric’s Strengths

05

Power Supply and■ Environment System

17

Customer Trust

39

Global Expansion

07■ Beam and Plasma

21

Shareholder Trust

42

Initiatives for Fair andTransparent Corporate
Management
External Main Awards andCertifications

09■ Equipment and Parts Solution

23

Societal Trust

43

External Evaluations

Business Overview

Message from the President

01

02

NISSIN REPORT 2022

51
54
54

Customer Trust
Employee
Mutual
Trust

Shareholder
Trust

Group
SloganForge a Bright Future for Both People and Technology

Corporate
Philosophy

Through corporate activities that support the foundations ofsociety and industry, the Nissin Electric Group will harmonize
with the environment and contribute toward realizing a vibrant society.

Principlesof Activities

Integrity, Trust and Long-term Relationships

Business
Mindset“Venture Spirit” fostered since our founding

We take the following Five Trusts as the principles of our activities.
(Customer Trust, Shareholder Trust, Societal Trust, Partner Trust,
Employee Mutual Trust)―The spirit to develop a future with high ambitions and a passion
for constantly taking up challenges

The spirit of “New Each Day” embedded
in our company nameFive Trusts―The unwavering spirit to seek something new each day andmake constant efforts toward one’s goals

Open-mindedness and the ability to digest
different cultures and technologies―The spirit to accept different things and eventually internalize themPartner
Trust

Societal
Trust

Company Outline (as of March 31, 2022)
Company Name

Nissin Electric Co., Ltd.

Incorporated

April 11, 1917

Stated Capital

10,252,845,127 yen

Employees

5,382 (consolidated)

Issued Shares

107,832,445 shares

Stock Code6641 (First Section of the Tokyo Stock Exchange)

Operations

Manufacture and sales of electrical equipment andinstruments as well as ancillary construction works

The Nissin Electric Group contributes to the achievement of the SDGs
around the core of the below goals through our five material issues (Materiality).

Editorial Policy
This report presents both an overview of the Nissin Electric Group and its businessactivities, as well as a sustainability report on its approach to corporate social
responsibility (CSR). The sustainability report is presented using a published report andwebsite. The published report contains an introduction to results from fiscal 2021,
following the plan and results indicated on pages 27 to 30.

Reporting Areas and Scope
Page 25 and beyond of the sustainability report focuses mainly on Nissin Electric Co., Ltd.
and its affiliates in Japan. The initiatives of certain overseas affiliates are also highlighted,
which are denoted by the GLOBAL mark. The term affiliate may refer to a different entity
or contain quantitative data for which the scope will be specified separately.

Reporting Period
April 1, 2021, to March 31, 2022

Reference Guidelines
Environmental Reporting Guidelines 2018 by the Ministry of the Environment, JapanGRI (Global Reporting Initiative) sustainability reporting standard

NISSIN REPORT 2022

02

Business Overview

Supporting Society and Lifestyles with Electric Technology
The Nissin Electric Group provides products and services that support a sustainable society and industrial infrastructure,with an emphasis on power system and energy equipment.
Our products play a key role everywhere to support society and everyone’s lifestyles.

Power Transmission Flow
Renewable Energy

Power Plant
Renewable Energy

Ultra-high Voltage
Substation

Primary Substation

Factory

Electrical Railroad

Power Conditioner
for Photovoltaic System

550kV Capacitor
Voltage Transformer

154kV Gas Insulated
Switchgear

66/77kV Ultra-compact
Gas Insulated Switchgear

Harmonic Restraint Device

Power Capacitor

66/77kV Oil Filled
Transformer

Special Switchgear
for Railroad Facilities

Passive Filter for Harmonic
Resonances Measures

Captive Consumption
Photovoltaic System

Renewable Energy

Electrical Railroad

Ultra-high Voltage
Substation

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NISSIN REPORT 2022

Primary
Substation

Factory

Share of Net Sales

Power Supply and Environment System Business
Design, proposal, operation, and maintenance of environmentallyfriendly power and environmental systems such as power quality
stabilization and distributed energy

By Business
Segment

Beam and Plasma Business

By Customer
Category

Ion implanter, electron beam processing system, fine coating

Power Supply andEnvironment System Business
Beam and Plasma Business

Equipment and Parts Solution BusinessIndustrial equipment and parts contract manufacturing,market-oriented business

Equipment andParts Solution Business

68.3%
26.6%
5.1%

44.3%
32.0%
Public sector
12.0%Electric power company 11.7%
Private sector
Overseas

Water andSewerage

Office Building
Shopping Center

Expressways

Home

Automobile

Supervisory Control
System for Waterworks

6.6kV Switchgear

Vehicle Recognition System

Outdoor Type IoT Gateway

Fine Coating Service

77kV Extra-high Voltage
Substation Equipment

Supervisory Control
System for Expressways

Electron Beam
Processing System

Smartphone
Tablet PC
Smartphone

Ion Implanter for
Semiconductor

Office Building

Tablet PC
Ion Implanter for FPD

Automobile
Expressways
Shopping Center
Water and Sewerage

Home

NISSIN REPORT 2022

04

Nissin Electric’s Strengths

Nissin Electric Continues to Evolve
We leverage our high voltage technology, vacuum application technology, and monitoring and control technology cultivatedover our history of more than 100 years and continue to evolve and create indispensable products and technologies for theworld every day.

The Nissin Electric Group has carried on the “Venture Spirit” fostered since our founding, and has been engaged in manufacturingwhile actively incorporating different cultures and different technologies from overseas. Our products bring together the finest
technology resulting in them being widely used in Japan and abroad where they have top market share and feature one-of-a-kind
unique technology. In recent years, we have demonstrated our reliable responsiveness with Smart Power Supply Systems “SPSS”
that solves customer needs with solutions that leverage our technological capabilities. In addition to the development departmentsof our business divisions, we have a Research and Development Unit consisting of four departments for each of our specialized fields,
where we advance new technology development every day as the core of our research and development.

Growing with theJapanese Electricity BusinessSupporting the Rapid Increase in the Demandfor Electricity Due to Postwar Reconstruction

At the same time as the dawn of Japan’s electric power era, Nissin
Electric was born in Kyoto. Starting with the manufacture of electric
meters and switchgears for electric power companies, we have
expanded our business to develop electric integrating watt metersand circuit breakers, and have contributed to developing electric
power networks throughout Japan, including Kyoto.

Following the turmoil at the end of the war, Japan’s economy
underwent a remarkable recovery. Nissin Electric entered the power
capacitor business after taking over power capacitor production
from Sumitomo Electric Industries, Ltd. We have a proven trackrecord in innovative capacitors that has increased the trust of themarket. Our new products with unique features, such as PD, havebeen rolled out one after another in other fields.

1968

1950
1912

Started manufacturingswitchgears

Developed gas
insulated
switchgears(GISs)Developed
capacitor
voltagetransformers(PD)(current CVTs)

1945

Took over thecapacitor
production
business of
Sumitomo ElectricIndustries, Ltd.

1970

1955

Developed remotemonitoring andcontrol system

Startedbusiness ofchargedparticle
accelerator
business

1910

1910

Founded as
Nissin Kogyosha

1917

Incorporated as
Nissin Electric Co., Ltd.

1937

Constructed Head Office andWorks in Ukyo-ku, Kyoto

1963

Built the Maebashi Works

The Spirit of Technological Innovation Embedded in the Company Name Nissin—Developing Original and Innovative Techniques Each Day to Forge a Bright Future for Both People and Technology
The name “Nissin” is derived from the inscription on the basin used by Emperor Tang, the founder of the Yin Dynasty(17th–11th century B.C.). This inscription means: “Truly new each day. New each and every day. Again, new each day.”
According to the Great Learning, one of the Confucian classics known as the Four Books, the noble and benevolent ruler
engraved these words on the basin, which he used every morning, as a constant reminder of the importance of making
continuous and untiring efforts to improve himself every day. Combining the two Chinese characters, nichi (day) and shin(new), used in this inscription, the company name was created so that, following this precept, we would strive to develop
original and innovative techniques each and every day to forge a bright future for both people and technology.

05

NISSIN REPORT 2022

1971

Built Ultra-highVoltage Testing
Laboratory
at Maebashi
Works

1968

Built new works
at Kuze and Kujo
Conjectural replica ofEmperor Tang’s basin

Research and Development Organization

Top-classmarket share,
one-of-a-kind
uniquetechnology
Analysis andverification
through advanced
technology

Reliable
response
capabilities

Power Technology Laboratories

Equipment and control systems supporting
power quality and a stable supply

Beam and Plasma Technology
Laboratories

Development of beam and plasma application
technology and business expansion,and development of fine coating application products

Material Technology Laboratories

Development of high reliability and low environmental
burden insulating materials and functional materials

Technology Development
Promotion Center

Development of new products, creation of new business, anddevelopment of maintenance technology employing CAE
analysis technology, material analysis, AI technology, and more

Responding to Diversifying Needs
with the Latest Technology

Contributing to Solve Social Challenges
Through Products and Business Activities

As the times changed from an era of high-growth to stable growth,
we pushed forward with international technology exchanges andtechnical alliances. In response to the diverse needs of electric powercompanies and industry, we have made our equipment morecompact and automated it. We have also increased our number ofoverseas offices and have started the full-scale provision of products
to the global market.

As social challenges such as prevention of global warming andprotecting the environment become more serious, the Nissin ElectricGroup focuses on developing and business expansion to achieve asustainable society based on the SDGs. We are developing productswith low environmental impacts, and providing renewable energy andenergy-saving solutions.

1978

2004

Developed ion
implanters

Developed
ultra-compact
gas insulated
switchgears (XAE7)

1984

2007

1986

2008

Developed large-scale water treatment system

Developed photovoltaic
system for grid connection

Developed power conditioner
for photovoltaic system

Developed
voltage dip
compensator

2013

2016

Entered the grid connection
equipment business forlarge-scale wind farms

Developed SPSS

2022

1987

Started businessoverseas andestablishedNissin Electric(Thailand) Co., Ltd.

1985

Entered the finecoating service business

1995

2007

Startedbusiness
in China

Became a subsidiary of
Sumitomo Electric Industries, Ltd.

2000

Started industrial equipment andparts contract manufacturing business in Thailand

2019

Opened the Nissin
Academy Training Center2017

100th anniversary of
Nissin Electric Co., Ltd.

NISSIN REPORT 2022

06

Global Expansion

Nissin Electric Group Products and Services Are Active
Around the WorldSoutheast Asia

EuropeGermany

ThailandSingapore

Electron beam processing system

Power capacitor
Electron beam processing system
Fine coating system andother systems

Gas insulated switchgear
Ion implanter for semiconductor

Spain
Electron beam processing system

Switzerland
Electron beam processing system

Italy
Electron beam processing system
We also deliver ion implanters forsemiconductor to several countries.

Vietnam

The Philippines

Gas insulated switchgear
Electron beam processing system
Fine coating system andother systems

Voltage dip
compensatorand othersystems

Middle East
Qatar

10

Bus ducts

12

13
11

Saudi Arabia

AfricaBus ducts

14

Egypt

South Asia

Gas insulated switchgear

Nigeria

India

Voltage dip compensator

Electron beam processing system

MalawiPakistan

Maldives

Photovoltaic system

Power capacitor

Energy supply and demand controller

Overseas Group Companies

18 offices: 15 in Asia (7 in China, 4 in ASEAN), 3 in the United States

1 Nissin Advanced Coating (Shenyang) Co., Ltd.

11 Nissin Electric (Thailand) Co., Ltd.

2 Beijing Hongda Nissin Electric Co., Ltd.

12 Nissin Electric Vietnam Co., Ltd.

3 Nissin Advanced Coating (Tianjin) Co., Ltd.

13 Nissin Electric Myanmar Co., Ltd.

4 Nissin Electric (Wuxi) Co., Ltd.

14 Nissin Ion Equipment Co., Ltd. Singapore Branch

5 Nissin Electric Wuxi Co., Ltd.

15 Nissin Ion Korea Co., Ltd.

6 Nissin Allis Ion Equipment (Shanghai) Co., Ltd.

16 Nissin Ion Equipment USA, Inc. Texas Customer Service Center

7 NHV Accelerator Technologies Shanghai

17 Nissin Ion Equipment USA, Inc. Massachusetts R&D Center

8 Nissin Allis Electric Co., Ltd.

18 NHV America Inc.

9 Nissin Allis Union Ion Equipment Co., Ltd.
10 Nissin Advanced Coating Indo Co., Private Ltd.

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NISSIN REPORT 2022

Employees by Location

Share of Net Sales by Geographic Area

(Consolidated; as of March 31, 2022)(Consolidated; as of March 31, 2022)

2,922 54.3%
881 16.4%
China
827 15.4%
497 9.2%
VietnamTaiwan111 2.1%
144 2.7%
OthersJapan

Thailand

Employees

5,382

Japan
By Geographic
Area

Asia
Others

68.0%
30.4%
1.6%

North America
United States

1
2

3

15

4

MexicoInstrument transformer
Electron beam processing system
Ion implanter for semiconductor
Fine coating system

Fine coating system

5
6

7
8
9

17

18

Central America
Costa Rica

16

East Asia

Photovoltaic system

South America

China

TaiwanInstrument transformer
Power capacitor
Electron beam processing system
Ion implanter for FPD
Ion implanter for semiconductor
Fine coating system and other systems

Gas insulated switchgear
Ion implanter for FPD
Ion implanter for semiconductor
and other systems

GuyanaPower capacitor

Uruguay
Photovoltaic system

BrazilElectron beamprocessing system

Korea
Gas instrument transformer
Ion implanter for FPD
Ion implanter for semiconductor

Argentina

Electron beamprocessing system

Group Companies in Japan

Manufacturing Sites in Japan

Major Sales Sites in JapanNHV Corporation

Head Office & Works (Ukyo-ku, Kyoto)

Hokkaido OfficeNissin Ion Equipment Co., Ltd.
Nissin Systems Co., Ltd.
Nissin Business Promote Co., Ltd.
Nippon ITF Inc.
Nissin Denki Shouji Co., Ltd.
Nissin Pulse Electronics Co., Ltd.
Nissin Heartful Friend Co., Ltd.
Auland Co., Ltd.

Nissin Electric Co., Ltd. and NHV Corporation

Maebashi Works(Maebashi City, Gunma Prefecture)
Nissin Electric Co., Ltd., NHV Corporation,
and Nippon ITF, Inc.

Kuze Works (Minami-ku, Kyoto)

Tohoku Office
Tokyo Office
Kitakanto Sales Office
Minamikanto
Sales OfficeNissin Ion Equipment Co., Ltd.
and Nippon ITF Inc.

Yokohama
Sales OfficeNissin Ion Equipment Co., Ltd. Shiga Works /Plasma Technology R&D Center(Koka City, Shiga Prefecture)

Niigata Sales OfficeNissin Ion Equipment Co., Ltd.

Hokuriku Sales Office

Kyoto Environmental
Sales Department
Keiji Sales Office
Wakayama Sales Office
Kobe Sales Office
Chugoku Office
Okayama Sales Office
Shikoku Office
Kyushu Office

Chubu Office

Kumamoto
Branch OfficeKansai Office

Okinawa Office

NISSIN REPORT 2022

08

Message from the President

Evolving into a company thatcreates a sustainable future throughsteady business growth based ona clear sustainability policy

Yoshihiro Matsushita
President

Fiscal 2021 Business Results
Increased Revenue and Profit Achieved
through Record-High Sales
In fiscal 2021, as economic activity gradually recovered from theimpact of the global coronavirus pandemic, we actively promoted
measures to develop and introduce products and services that
address market trends and customer needs, and the entire
company worked to strengthen cost competitiveness. As a result,net sales in fiscal 2021 reached a record high of ¥132.1 billion.
Operating income also reached ¥16.8 billion, allowing us to achieve
an increase in both revenue and profit.
One factor was that in the Power Supply and Environment
System Business, demand was strong in Japan, China and Taiwan,
especially for infrastructure-related products. Meanwhile, due to the
COVID-19 pandemic, some update and maintenance projects were
delayed, and in Life Cycle Engineering, work including equipment
installation, equipment diagnoses, maintenance and servicing wasaffected by restrictions on overseas travel and business travel.
While we responded to this situation by, among other things,
strengthening remote diagnoses, we feel it is necessary to continue
to take measures to address this issue, including by improving theaccuracy of remote diagnostics.
In the Beam and Plasma Business, inquiries from China andKorea for ion implanters used in the manufacture of flat panel
displays (FPDs) have recovered.
Both orders and sales were strong in the Equipment and Parts
Solution Business, primarily for semiconductor manufacturing

09

NISSIN REPORT 2022

equipment. Sites in Thailand and Vietnam were temporarily
affected by production adjustments and other factors due to the
spread of COVID-19, a situation we were able to overcome throughour company-wide approach. Myanmar, set up as our third
production site, was affected by political instability caused by the
military’s seizure of power, and while we were unable to travel there,
we did manage to launch production remotely and begin shipping
our first products.
In addition, we minimized the impact of global price hikes andprolonged delivery times for materials such as copper and iron,semiconductors and electronic components by developing new
suppliers, placing orders early and improving productivity, which
also contributed to our strong performance.

Effects of Business Division Reorganization
and Key Initiatives in Fiscal 2021
The fiscal 2021 reorganization into three segments—Power Supply
and Environment System, Beam and Plasma, and Equipment andParts Solution—has clarified the accountability and management
structure of each business segment and better ensures consistency
in strategy. This is particularly true of the transfer of the former
Renewable Energy and Environment Business and Life Cycle
Engineering Business to the various business units of the Power
Supply and Environment System segment, which has allowed forquick deployment of information on customer needs and market
and technological trends; centralized management of productdevelopment, designs and proposals, manufacturing, installation
work and maintenance and servicing; and made it possible toengage in activities more closely aligned with customers. In fact,
we feel we are making rapid, steady progress in developing SF6
gas-free and other environmentally friendly products, and indeveloping businesses in line with our growth strategy, including
addressing distributed energy and renewable energy needs.
As before, the Beam and Plasma Business continues to focus
on the three pillars of ion implanters, electron beam processing andfine coating. In ion implanters in particular, we worked to develop
equipment and processing technologies to meet demand in growing
new markets for larger, higher-resolution FPDs, power
semiconductors and electric vehicles (EVs).
In the Equipment and Parts Solution Business, we are taking
advantage of the characteristics of our sites in Thailand, Vietnam,
Myanmar and Japan to strengthen production systems to meetthe needs of our customers. By proposing solutions based on our
accumulated experience and expertise, we are expanding contract
production of equipment and parts for a variety of industrial fields,
including semiconductor manufacturing equipment and powersystem equipment. With the establishment of a wide-ranging
production and supply system incorporating the production sitesof overseas group companies and our processing sites in Japan,
we have also launched our first outside sales metalworking business.

Outlook for Fiscal 2022
Focusing on Six Growth Strategies to Contribute
to Realizing a Sustainable Society
Although the impact of the COVID-19 pandemic is expected to berelatively small in fiscal 2022, delivery and construction schedule
delays are expected to continue due to customers’ reduced
operations and restrictions on on-site work. In addition, uncertainty
is seen as increasing further as the shortage of semiconductors andelectronic components is expected to lead to longer delivery times
for parts and materials and disruptions in marine transport, also
resulting in delays in delivery and construction schedules, and as aresult of a decrease in business opportunities due to rising prices foroverseas imports caused by a weakening yen, which has further
driven soaring material prices.
Given these circumstances, what we need to do is to stay instep with changes in society and customer needs through our six
growth strategies as outlined in VISION2025, our
medium-to-long-term business plan. We believe our mission is tocontribute to achieving a sustainable global environment and asociety where every person can play an active role, and we areworking to do that through these six growth strategies.

Medium-To-Long-Term Business Plan “VISION2025”
Consolidated net sales

Target for FY2025

FY2021 Results

160 billion yen

132.1 billion yen

Consolidated operating
income20 billion yen

16.8 billion yen

Consolidated operating
margin

12.5%

12.7%

ROA

Over 10%

8.9%

ROE

Over 10%

9.4%

40%

Payout ratio

Consolidated net sales
Consolidated operating income
Consolidated operating margin

1,600(100 million yen)
1,600
1,400

1,247

1,321

1,400

1,200

1.28x

(compared with FY2020)

1,000
800

12.2%

12.7%

12.5%

12.1%

600

1.32x

400
200

32.4%

0

152

168

170

2020

2021

2022 (plan)(compared with FY2020)

2002025 (target)

Placing the SDGs as the core of VISION2025, contribute to achieving a sustainable global environment
and a society where every person can play an active role based on the six growth strategies
Business field

Energy solution

Growth strategies

Expansion of environmentallyfriendly products

Social infrastructureand environment

Response to
distributed energy

Highlyfunctional materials
and systems

Response to
renewable energy

Adoption of DX to
products and business

SPSS
Strengthening
the businessfoundation

Enhancing
manufacturing
capabilities

Improvingproductivity

Industrial equipment
and components

Diversifying
the supply chain

Life cycle
engineering

Identifying demand resulting
from increasing environmental
awareness in emerging countries

Strengthening
human resources
strategy

Expand business in stepwith the growth of EV market

Work style reforms

NISSIN REPORT 2022

10

Message from the President●Power Supply and Environment System Business●Beam and Plasma Business

Expanding Environmentally Friendly Products
and Strengthening Address Distributed Energy
and Renewable Energy

Full-Scale Entry into the Power Semiconductor
Market and Strengthening of theService Organization

In the Power Supply and Environment System Business, we aremaking even greater efforts to expand our line of environmentallyfriendly products by, among others, developing SF6 gas-free powersystem equipment and energy-saving equipment and by promoting
adoption of biodegradable electrical insulating oils. At the same time,in addressing distributed energy, we will expand orders for smart
power supply systems (SPSS) and work toward the early
introduction of direct-current distribution system products to themarket. In our addressing renewable energy, we are moving ahead
to strengthen our efforts in large-scale wind farms and cross-regional
power system interconnection projects. In particular, we intend to
focus on leveraging our strengths in grid connection technology andextra-high voltage fields to further expand SPSS, an environmentallyfriendly energy solution equipped with AI and IoT functions. In thelarge-scale wind power generation projects that have ramped up
in recent years, we will contribute to power quality stabilization by
combining the top-class power transmission cable technology ofour parent company, Sumitomo Electric Industries, Ltd., with ourstrength in grid connection technology. By taking advantage ofGroup synergies, we are further improving our systems in order to
respond to an even greater expansion of demand going forward.
As the paradigm shift in electric power accelerates, newchallenges and demands are emerging in diverse industries,
including power companies, factories, water treatment plants andhighways. In response to such demand, we will establish a structurethat can provide a stable supply of the electric power essential for
people’s daily lives and industry by making maximum use of ouron-site and sales capabilities as well as our technology strengths.

In the Beam and Plasma Business, we will focus on developing andexpanding sales of ion implanters for power semiconductors,
cutting-edge semiconductors and large FPDs, all areas in which
demand is expected to increase. At the same time, we will work toestablish and strengthen our production structure.
In electron beam processing, in addition to expanding orders
for equipment for tires, where demand has been strong, we will
work to expand new sales through equipment development,
processing services, etc. as interest in environmentally friendly
materials has grown even greater than before. To strengthen ourservice organization overseas, we have established a network ofcustomer service centers in China, Southeast Asia, the U.S., India
and Europe under the aegis of our service and training center inJapan. These efforts will lead to improved customer satisfaction
and further growth in orders.
In fine coatings, we will promote automation and labor-saving
processes in addition to responding to the shift to EVs.

●Equipment and Parts Solution Business

Expanding Business Fields into
Market-Oriented Businesses
In the Equipment and Parts Solution Business, we will continue toexpand our contract manufacturing business as well as the outside
sales metalworking business. We will also focus on expanding ourbusiness fields with market-oriented businesses that meet theneeds of the environmental sector in the ASEAN region, including
new aqueous cleaning and waste treatment solutions, with the goalof establishing this as a business.

Promoting a Shift to DX across All Businesses
A common challenge across all of our businesses is promoting theshift to DX. One of the ways to maximize the effects of our businessdivision reorganization is to strengthen our structures and systems
for promptly sharing within business divisions customer feedback
obtained through our customer service departments and throughmaintenance and servicing, and utilizing that feedback in productdevelopment and solution proposals. First, in the manufacturing
department, we are promoting the visualization of production andinspection history data; in the future we plan to make some of thisdata available to customers as well. Further, in fiscal 2022 we will
begin building a system to enable the use of big data in the sales,customer service, procurement and other departments.Especiallygiven the recent unstable international situation, it is essential that
we diversify procurement sources to different areas. It is thus extremely
important from a risk response perspective that we be able toconstantly share the newest data with the relevant departments.

11

NISSIN REPORT 2022

Further, we are moving ahead to consider strategic exchangesof personnel so that market-oriented business cultivated in the
Equipment and Parts Solution Business can be expanded into otherbusinesses, and expertise in areas such as remote maintenance andremote production start-up can be shared between developments.

Promoting Sustainability Management
Moving One Step at a Time Toward the
Vision for 2050
Based on the perspective of the SDGs, in VISION2025 we
redefined our business objective as “Creating a good company thatwill survive for the next 100 years in order to achieve a sustainableglobal environment and a society where every person can play anactive role.” This is why we have set a long-term direction as our
vision for 2050.
We are aiming to become a company creating a sustainable
future through reliable technical capabilities where each of
employees can realize the contribution to society in an environmentthat respects diverse values and encourages new challenges. To
achieve this, I believe it essential that each and every one of ouremployees actively takes on the challenge of not only adapting tochanges, but creating changes, by returning to the founder’smindset and reinforcing an awareness of NISSIN ISSIN.
We are a company founded on technology, and that technology
runs on people. The establishment of new technologies that leadto solutions to social issues; the development of new products andservices; and proposals for solutions that emerge when we approachcustomer issues as if they were our own―all of these start withpeople. That is why I believe it is important that employees be able
to feel comfortable speaking their minds to anyone, and canchallenge themselves in an environment in which they can achieve
personal growth and feel they are contributing to the company andsociety through their work. We intend to engage in this effort basedon the central “Leave no one behind” promise of the SDGs.
At the same time, we have derived our Group materiality *1
with an eye toward our vision for 2050. Under our KPIs, we will
implement specific initiatives and steadily execute a PDCA
cycle as we check our results against our targets. As part of thateffort, we have expressed our support for the recommendationsof the Task Force on Climate-related Financial Disclosures (TCFD),
and will disclose information related to climate change. In June
2021, we also established a greenhouse gas emission reduction
target, and received certification from the Science Based Targets
Initiative (SBTi), an international environmental organization. We
clearly defines and announces its environmental targets, which
include reducing its own greenhouse gas emissions by 35% by
fiscal 2030 from fiscal 2018 levels, and by 30% throughout its
entire supply chain.

To Our Stakeholders
Achieving a Full-Participation “VISION2025”
With the SDGs at its core, VISION2025 clearly lays out our vision
over a long-term span of 30 years. This represents the deeper
development of the Five Trusts―customer, shareholder, society,partner and employee mutual trust―which the Company has
adhered to since its founding as the principles of activities.
With the establishment of these long-term guidelines, I feel thateach of our employees is now prepared to confirm the distance
between where they are now and our target destination, and tomove in the direction they need to go.
Given that fiscal 2021 is the first year of VISION2025, we havefocused especially on disseminating our policies, strategies andplans. This has allowed our Group companies and departments to
get off to a strong start by getting activities on track under the newpolicies. In fiscal 2022, the second year of the plan, we will further
promote VISION2025 with the full participation of all employees.
We will work to further strengthen our SEQCDD *2 businessstructure; create products and services that meet the needs ofcustomers, markets and society; and enhance our technical,
on-site and sales capabilities to achieve these goals. I would liketo see us move into a higher gear and accelerate our efforts toachieve a sustainable global environment and a society where
every person can play an active role.
*1 See Feature (P.13-16)*2 SEQCDD S: Safety E: Environment Q: Quality C: Cost
D: Distribution and delivery time D: Development

Yoshihiro Matsushita
President

NISSIN REPORT 2022

12

Feature

Promoting Sustainability Management
Creating a good company that will survive for the next 100 years inorder to achieve a sustainable global environment and a society
where every person can play an active role
Yoshihiro Matsushita President

Over our more than 100 years in business since our founding in
1917, we at the Nissin Electric Group have remained dedicatedto our principles of activities—namely, “integrity, trust and long-term
relationships”—and to adhering to the Five Trusts when interactingwith our customers, shareholders, society, partners, and mutually
among employees. In addition, in 2021 we established VISION2025,
a medium-to-long-term business plan organized aroundsustainable development goals (SDGs) that will survive our businessfor the next 100 years. We have also established a sustainability
policy by building on the policies and strategies set forth in
VISION2025. Based on our mission of continuously creating newvalue for our customers, VISION2025 will guide us in applying theSDGs philosophy of solving environmental problems andhumanitarian and social issues to the business activities and thetechnology and products of the Nissin Electric Group.

Based on the perspective of the SDGs, we have also redefined
our business objective as “Creating a good company that willsurvive for the next 100 years in order to achieve a sustainableglobal environment and a society where every person can play anactive role.” Moreover, by 2050 we aim to transform the Nissin
Electric Group into a company that creates a sustainable future
through reliable technical capabilities, where each of employees
can realize the contribution to society in an environment that
respects diverse values and encourages new challenges. A “goodcompany” values its employees, is needed by its customers andsociety, is trusted by its partners, and meets the expectations of
its shareholders. Over the next 100 years, we intend to combine
a long-term perspective with a near-term perspective as we movesteadily and decisively forward.

Sustainability Promotion Framework and Promotion Activities
In July 2021, we launched the SDGs Promotion Department, anorganization dedicated to promoting the SDGs activities of the
Nissin Electric Group. In September 2021, we also launched theSDGs Promotion Review Council. With members selected fromamong our corporate staff departments, business units, and the
Research and Development Division, the SDGs Promotion
Review Council reviews the Group’s materiality and its KPIs formeasuring progress. In addition, in November 2021, weestablished the SDGs Committee, which is chaired by thepresident. Consisting of division general managers and Group
company presidents, the SDGs Committee deliberates on Groupsustainability and the KPIs for measuring progress and isdesigned as a company-wide and cross-sectional promotion
framework that reports to the Board of Directors and Managing
Directors. The SDGs Promotion Review Council and SDGs
Committee will continue to meet periodically in order to executea PDCA cycle and ensure progress toward achieving Group targets.
In order to instill the importance of our SDGs activities
throughout the company, we conduct an e-learning-based training
program for Group employees both in Japan and overseas, andin fiscal 2022 we also initiated this training for new employees.
Through such efforts as posting SDGs icons and hanging posters
and banners bearing SDGs slogans submitted by our employees
in the workplace, we are working to raise awareness of our SDGs
activities within the company so that every Group employee willconsider our SDGs efforts to be a part of their own work.

13

NISSIN REPORT 2022

Board of Directors / Managing Directors
ReportDirection / Feedback

SDGs Committee
Chairman: President
Vice chairman: executive officer in charge of SDGs promotion
Committee members: division GMs and Group company presidents
Secretariat: SDGs Promotion Department
Propose / Report

Decide policy

SDGs Promotion Review Council
Advisor: Executive officer in charge of SDGs promotion
Council members: members selected from corporate
staff departments, business divisions,
Research and Development Division
Secretariat: SDGs Promotion Department

SDGs
Promotion
Department
Training /SupportGather and link information

Employees of Japan and overseas Group companies

New employees
receiving SDGs training

Specifying Materiality
Our SDGs policy is guided by the Nissin Electric Group corporate
philosophy, which stresses “through corporate activities that
support the foundations of society and industry, the Nissin ElectricGroup will harmonize with the environment and contribute towardrealizing a vibrant society.” In order to achieve this corporate
philosophy, in April 2019 we reevaluated our Corporate Behavior
Charter to include the prominent social issues of “taking action on
global environmental problems,” “respect for human rights anddiversity,” and “thorough risk management.” Group materiality is
guided by the addition to the Corporate Behavior Charter of the“situation after undergoing significant change” that we aredetermined to achieve by 2050 and which is part of VISION2025.
Materiality consists of two elements: “products and services
that create value” and “actions to strengthen the businessfoundation.” In “products and services that create value,” the six

growth strategies set in VISION2025 aim to contribute to solving
global environmental problems such as reducing greenhouse gas
emissions and social issues as “contribute to technologicalinnovation through eco-friendly and earth-friendly products” and“contribute to global environmental problems.” “Actions tostrengthen the business foundation” refers to our efforts tostrengthen Group business sustainability by “reform of faircorporate activities that respect human rights,” “reform into a safe
and worker-friendly workplace that respects diversity,” and“improving BCP with stronger risk response capabilities.”
We have specified KPIs for the main activities behind each ofthese materiality factors, and we will move them forward bymonitoring their progress and disclosing appropriate information
both inside and outside the company.

Important Social Issues (as of 2019 revision)

Ongoing Social Changes (as of 2021 establishment)● Global environmental problems● Respect for diversity● Respect for human rights● Risk management● SDGs● Globalization● De-carbonization /● Decreasing birthrate andCarbon neutrality● Energy decentralization● Digital transformation

Corporate Behavior Charter

aging population● Risk distribution /BCP

Medium-To-Long-Term Business Plan “VISION2025”
Situation after undergoing significant change❶ Provide products and services that meet customer needs❷ Take action on global environmental problems

Aiming to become a company creating a sustainable future through reliable technicalcapabilities where each of employees can realize the contribution to society in anenvironment that respects diverse values and encourages new challenges❸ Take action as a member of society

Policy❹ Respect for human rights and fair corporate activities

NISSIN ISSIN―
Returning to the Founder’s Mindset
Adapt to changes, Create changes❺ Achieve a safe and worker-friendly workplace that
respects diversity

Sustainable
Creating a good company that will survive for the next 100 years in order to achievea sustainable global environment and a society where every person can play anactive role

❻ Practice thorough risk management

Six Growth Strategies
Strengthening the Business Foundation

Materiality
Products and Services that Create ValueContribute to technological innovation througheco-friendly and earth-friendly products

Contribute to solving global environmental problems

Actions to Strengthen the Business Foundation
Reform of fair corporate activities
that respects human rights

Reform into a safe and worker-friendly
workplace that respects diversity

Improve BCP with stronger risk
response capabilities

NISSIN REPORT 2022

14

Feature

Materiality of Products and Services that Create ValueContribute to Technological Innovation Through Eco-friendly and Earth-friendly Products
Contribute to building a foundation for technological innovation and achieving sustained growth by providing high-quality products that are safe andfriendly for people and the environment.
MeasuresSix growth strategies contributeto solving social issues

KPI
GLOBAL

Six Growth
Strategies

Target SDGs

Achieve a six growth strategies sales ratio of 40% by FY2025
8.1

Contribute to Solving
Social Issues

Main Activities

Expansion ofenvironmentallyfriendly products

Response to
distributed energy

Response to
renewableenergyAdoption of
DX to products
and business

Identifying
demand resulting
from increasing
environmental
awareness inemerging countries
Expand businessin step with thegrowth of
EV market

Develop and introduce to market SF6 gas-free, environmentally friendly
electron beam processing systems
Develop and introduce to market SF6 gas-free, environmentally friendly
market equipment (gas insulated switchgears, etc.)
Distributed energy resource control system uses energy efficiently andexpands renewable energy and energy conservation
Promote renewable energy as a main power source through electrical
power grid stabilization system and area aggregation system
Expand the introduction of wind power by providing safe and reliablewind power generation package systems (grid connection equipment)
Implement smart maintenance utilizing AI and IoT to improve safety,
reliability, and BCP capability of social infrastructure

Related SDGs

Reduce SF6 gas
emissions(in-house, product users)

13.1

S
●

S
●

S
●

Reduce CO2
emissions(product users)

7.2, 7.3

13.1

S
●

S
●

Achieve robust social
infrastructure
9.4

Provide communication services linked to the community usingeasy-to-operate ICT devices

Achieve anelderly-friendly society

Business growth in the core ASEAN industry of manufacturing

Sustained economic
growth in developing
countries

Develop and introduce to market environmentally responsive productsthat meet local needs

Improve the environment
and living standards in
the ASEAN region

12.8

8.1

3.9

6.3

14.1

7.3

13.1

15.1

Expand DLC for eco-friendly cars
Reduce CO2 emissions(product users)
Expand sales of ion implanter for SiC power semiconductor

S SPSS)■ Power Supply and Environment System Business ( ●■ Beam and Plasma Business ■ Equipment and Parts Solution BusinessContribute to Global Environmental Problems
We are contributing to preventing global warming and making every effort to avoid a climate crisis by working energetically to prevent environmental
pollution and use resources efficiently.
Measures
Reduce greenhouse gas emissions(SBTi certification reduction plan)
Promote resource conservation
and reduce and reuse wastematerials

KPI
GLOBAL

Scope 1+2: reduce 35% compared with FY2018 by FY2030
Scope 3: reduce 30% compared with FY2018 by FY2030

GLOBAL

Reduce waste volume per unit by 7% compared with FY2018 by FY2025
Reduce water consumption per unit by 7% compared with FY2018 by
FY2025

Prevent environmental pollution due
to chemical substance discharge,
GLOBALleaks, and the like

Reduce volatile organic compound (VOC) emissions per unit by 7%
compared with FY2018 by FY2025

Target SDGs

13.1

12.5

3.9

Scope 1: Direct emissions from in-house fuel combustion and manufacturing processes
Scope 2: Indirect emissions produced by electricity and heat purchased by the Group
Scope 3: Indirect emissions not included in Scope 1 and Scope 2 (raw materials procurement, product use, employee commuting, etc.)

15

NISSIN REPORT 2022

12.4

Materiality of Actions to Strengthen the Business Foundation
Reform of Fair Corporate Activities That Respect Human Rights
Our corporate activities worldwide strive to build an equal society that respect the human rights of every person, that observe national laws,
including international law, and that respect cultures and values.
Measures

KPI

Target SDGs

Periodically and continuously conduct effective training at every Group
company site in Japan and overseas, strive for thorough compliance, andkeep occurrence of major violations (antitrust and competition law violations,
violations accompanying suspension of business procedures) at zero

Thorough global compliance
GLOBAL
Apply a thorough human rights policy within
the Group (apply human rights
GLOBALdue diligence*)

Build a mechanism capable of periodic self-assessment of the risk of humanrights violations and establish the practice of human rights due diligence

16.3, 16.5

8.7, 8.8

10.2* Human rights due diligence: the ongoing process of companies to implement appropriate measures to prevent and address the risk of adverse impacts on human rights

Reform into a Worker-Friendly Workplace That Respects Diversity
We will build a workplace environment in which each individual’s characteristics, personality, and potential are respected and everyone, as a main actor,
can fully display their abilities regardless of differences in nationality and gender and the existence of disabilities.
Measures

KPI

Target SDGs

Regardless of differences in nationality and gender and the existence ofdisabilities, support the potential and growth of every person and build aworkplace culture in which everyone thrives●FY2030 Rate of female managers (Japan) over 10%
Rate of female employees hired (Japan) over 30%

Promote diversity & inclusion

5.5

Safety targets GLOBAL●FY2025 Workplace accidents: Japan: 3 or fewer / Overseas: 6 or fewer
Zero serious accidents and residual disability accidents
Safe and healthy workplace

3.6

Health targets
The Nissin Electric Group has issued a declaration stating its commitment to aworkplace where every employee can work in conditions that safeguard
their physical and mental health●Health Management Declaration issued FY2022 (Japan)

A worker-friendly and fulfilling workplace

3.4

In an environment that enables everyone to safely express their opinion,
respects diversity, and encourages taking on challenges, create a workplace(workplace that contributes to well-being) where individuals can feel theirself-growth and their contribution to the company and society through theirwork and aim to enhance the degree of employee satisfaction
Focus on worker-friendly factories that produce safe and high-quality products
In FY2022, establish objective evaluation methods and set performance targets

8.8

8.5

●

Promoting Smart Factory

●

8.2

9.4

13.1

Improve BCP with Stronger Risk Response Capabilities
Ensure that we endure for the next 100 years by maintaining supply chains even when sudden risks―including natural disasters and conflict―occur.
Measures

KPI
In order to strengthen partner sustainability, through FY2025, for partners
who account for 90% of the acceptance amount for all production
bases*, perform compliance surveys in accordance with CSR
Procurement Guidelines, and then analyze the results and give
guidance for improvements●Build a partner CSR objective (quantitative) evaluation framework by
FY2030 that can identify partners that are high risk

Target SDGs●

Strengthen
sustainability ofentire supply chain

Strengthen partner
sustainability
GLOBAL
Strengthen Group risk
response capability

Build a natural disaster rapid recovery support framework for ourcustomers

10.2 12.4, 12.5 17.16

13.1* Overseas, includes main partners that are subject to this policy

NISSIN REPORT 2022

16

Review of Operations by Segment

Power Supply andEnvironment System BusinessThis Business focuses on developing and manufacturing electric power equipment, which converts power voltages to a level suitable
for the equipment and monitors and controls the voltage level to ensure a safe and efficient energy supply. We are also addressing
social needs which are increasing on a global scale, such as the use of renewable energy sources, the subsequent need for morestable power grids, electricity infrastructure improvement and the prevention of environmental pollution. We also provide
comprehensive support service over the entire life cycle from on-site installation work and on-site testing to maintenance, facility
assessment, and replacement.

Business Description

Toward a Sustainable Future

Proposals for Various Systems

A reliable supply of electricity is essential for stable economic
activities and maintaining a comfortable lifestyle. Improving
energy efficiency also helps reduce greenhouse gas emissions
and leads to energy security. Nissin Electric’s products andsystems not only ensure a safe and stable supply of electricity,
but also improve efficiency, which aids in the maintenance ofenergy infrastructure in Japan and abroad. In the environmental
field, we also assist in the stable operation of water treatment
facilities with a highly accurate control system and contributeto the comprehensive management of water resources by
supporting.

Energy-saving and space-saving
environmentally friendly substation system,
power grids stabilization systems fornext-generation electric networks, distributed
energy resource control systems for the
local generation and local consumption ofenergy, and renewable energy systems

Gas Insulated Switchgear (GIS)

Contribution to Stabilizing Power Quality
SPSS wind power generation package
systems using our power systemanalysis engineering

Initiatives for the Replacement of
Existing Electric Power Equipment
Developing a recurring revenue
models using DX

Captive Consumption
Photovoltaic System

Medium-to-Long-Term Business Plan “VISION2025”

Expansion ofenvironmentallyfriendly products

17

NISSIN REPORT 2022

Response to
distributed energy

Further expand SPSS (Smart Power Supply Systems)
Expand the market in our strength in power
infrastructure (cross-regional power system
grid connection and power interchange)● Challenge to enter the market for introduction ofprivate sector vitality● Expand water treatment business abroad● Develop recurring revenue businessfor replacement demand●

Our Growth Strategy●

Response to
renewable energy

Adoption of
DX to products
and businessRegional Microgrid Systems Contribute to De-carbonization,
Electric Power Resilience, and a Sustainable Society
As efforts gain momentum worldwide to de-carbonize and build a sustainable society, attention is turning to building regional microgridsthat enhance electric power resilience by providing renewable energy locally generated and consumed, reduced energy costs, anda stable energy supply during emergencies. Regional microgrids are a new kind of energy system that efficiently supply energy using
photovoltaic system and storage battery distributed throughout the microgrid region during normal times. Moreover, during a natural
disaster or other emergency that causes a large-scale power outage regional microgrids are able to detach from the surrounding
power system and independently supply power to the area using storage battery as the primary power source. Nissin Electric hasdelivered the Miyakojima City Kurima Island regional microgrid system consisting of substation equipment, EMS, storage batteries,
and DG for auxiliary charging to the Okinawa Electric Power Company.
Efficient energy usage and a stable energy supply help us achieve a sustainable society.
Miyakojima City Kurima Island Regional Microgrid System Diagram
Normaloperation

Emergency Detaches from main system and supplies power
operation to a specified area

The system efficiently uses renewable energy
provided by a photovoltaic system and storage battery

Cooperative
operation

MG-EMS
Integrated control
balances supply anddemand within theregional microgrid area

Demand side EMS

Supply fromstorage battery

Miyakojima
systemDetachesduring emergency

MG storage
battery

Recharges withgenerators

Auxiliarycharging DG

Regulates supply anddemand within theregional microgrid area,
and acts as anindependent powersource during an
emergency

Detachesduring emergency

Recharges
surplus power

Provides auxiliary
power when MG
storage battery power
supply is low

Photovoltaic system

Captiveconsumption

Storage battery
MG: Microgrid
DG: Diesel generator

Launching an Area Aggregation System to Effectively Use Energy
Resources and Efficiently Control Surplus PowerOur group company Nissin Systems has started
providing area aggregation system services in
response to the great changes to the energy
business brought about by the growth ofrenewable energy. Area aggregation is a power
supply and demand control system designed
to effectively use storage battery, eco-friendly
water heaters, EV rechargers, and other energy
resources owned by multiple consumers in aregion and efficiently control surplus power.
Introducing this service increases photovoltaic
system captive consumption rate and gains
entry into the capacity market and ancillary
service market.
Efficient energy usage and a stable energy
supply help us achieve a sustainable society.

Area Aggregation System Diagram
Weather
information site
Power company
output control
serverSola
inten r radiatio
sity estiman
te
Outpu
t con
trol request

Energy provider
Visualization

Control schedule record

Scheduled response
Ancillary
service market

Area aggregation
DR request

CapacitymarketArea/group management

Private network LTE Data collection and reporting

Schedule control

Outdoor Type IoT gateway

ECHONET Lite/Wi-SUN
EV

Storagebattery

Photovoltaic
systemEco-friendly
water
heaterElectric
power
meter

NISSIN REPORT 2022

18

SPSS Wind Power Generation Package Systems Provide Reliable Wind
Power Generation System Operation
Progress on adopting renewable energy over the last few
years has made it necessary to address issues related togrid interconnectivity associated with large-scale systems
and large-volume, long-distance power transmission.
Based on our substation system technology and powersystem analysis engineering built up over many decades by
our Power System Equipment Business, Nissin Electric
provides SPSS wind power generation package systems.
These integrated systems supply transformer equipment
for interconnections and provide system phenomenon
analysis, prepare countermeasures, and provide theequipment to implement them. Besides supporting the
expanded installation of large-scale wind power generation
systems, our SPSS wind power generation package
systems contribute to reducing CO2 emissions.
Power system

Land cable (number + km)
Circuit breakerPowersystemA wealthof experience

The ability to design andpropose optimal systems
for grid connection
equipment, including
monitoring

A wealth of experiencedelivering wind power,
solar power, and other
distributed energy resource
grid connection equipment

Power quality
management
equipment

Power systemanalysisengineering

A full lineup of power
quality management
equipment for wind power
generation

A wealth of knowledge andpower system analysis
engineering on power
quality management

Grid connection switch station● Voltage fluctuation
when a cable ischarged/stopped● Overheated equipment
and voltage distortiondue to harmonic
wave resonance● Malfunction of circuit
breakers when acable fails

Wind power generator group

Extra-high TR

Wind
power
generatorgroup

Switchgear
VT

CT

GIS
Protection of premises

Distance Ry Distance Ry

Power
panel

(2) Cable transmission
line protection

Nissin Electric provides 1 thru 4

Responding to thechallenge of power
quality inlong-distance cable
power transmission

Substation(3) Substation

VT CT
Power source
PVT
Harmonic FL

The ability to makesystem proposals

AC power transmission(1) Grid connection
switch station
GIS

Our Strengths

SCADA

GIS: Gas insulated switchgear
VT: Voltage transformer
CT: Current transformer
PVT: Oower voltage
transformer
FL: Filter
Ry: Protection relay
TR: Transformer
ShR: Shunt reactor
SCADA: Supervisory control
and data acquisition

ShR (4) Voltage stabilization

System diagram

Expanding Environmentally Friendly Products That Leverage Our
Technological Capabilities
As social environmental measures increasingly become a priority,environmentally friendly product needs are increasing. To meetthese needs, we have been applying the technology andexpertise we have built up over decades to developing
environmentally friendly products.
We can supply all oil-filled equipment with Eco-Markcertified biodegradable electrical insulating oil. Moreover, in
fiscal 2021, the adoption by a railroad company ofenvironmentally compatible transformers using palm fatty acidinsulating oil was among the variety of environmentally friendly
products that we delivered to our customers.
We will continue to work hard both on reducing
environmental burden by developing, adopting, and popularizing
even more efficient, environmentally friendly materials and on
contributing to our BCP readiness and fulfilling our SDGs withsafe and durable products.

19

NISSIN REPORT 2022

Pastell LI-B1

Plant oils

Instrumenttransformers

Capacitors

Unit type capacitor
equipment

Transformer

Pastell LI-B1

Pastell LI-B1

Capacitor: Pastell LI-B1

Palm fatty
acid ester oil

Reactor: Rapeseed oil

Oil type[Former]
Rapeseed
Pastelloil
LI-B1 Capacitor insulation oil

Palm fatty
acid ester oil[Former]
Mineral oil

Electrical properties

○

○

○

○

○

Cooling performance

○

○

△

○

○

Biodegradable

○

×

○

○

△

Ichthyotoxicity

○

×

○

○

×

Eco-Mark certified

○

×

○

○

×

Providing Safety and Security Throughout the Life Cycle with a Variety of
Sensors and Remote Monitoring Systems That Feature IoT
Maintenance and repairs can be performed at the right time, and equipment failures can be prevented
with our unique assessment equipment and various sensors that use IoT to visualize the state ofelectrical equipment. We are currently developing an equipment assessment system that leverages AI.
In addition, we use a visualization service with remote monitoring system to perform remote
maintenance on supported photovoltaic systems. These technologies provide our customers withsafety and security through reliable support throughout the life cycle, even after delivery.
In fiscal 2021, we began the sale of a new series of multiple environment sensors that detectbreakdown risk from corrosive hydrogen sulfide gases. We also enhanced the precision and bolstered
the lineup of our all-purpose models.
Understanding the status of equipment throughassessment equipment
Environmental
sensingRenewalProposal
Facility
assessment

Delivery

Statusmonitoring(Nissin Electric)

Notification ofchange instatus or failure

Customer

Data collection

INTERNETINTERNETPower generation site
(Customer)

Power conditioner
manufactured by Nissin Electric
CustomerOn-sitetesting

Visualized
status notificationlog

Carrying type partial Detecting partial
discharge diagnosis discharge andequipment for GIS sensing devices

Predictive notificationof change in status

On-siteinstallation
work

Maintenance

Data server

Facility assessment system

Manufacture

Customer

Partial discharge sensing

Multiple environment
sensorDesignE-Mail notification

Status monitoring

Notification ofhange instatus or failure
Confirmationof failure

Remote maintenance(Nissin Electric)

Remote maintenance

Maebashi Works Completes Smart Factory Featuring Automation,
IoT, and Other State-of-the-Art Technology
In response to rising demand accompanying the increasingly rapid growth of renewable energy use and the demand for updating
equipment installed during the era of high economic growth, Nissin Electric has automated the production shop for gas insulated
switchgear in the Maebashi Works and updated the facility into a smart factory featuring state-of-the-art IoT and other technology.
Circulation flow has been reorganized to improve logistical efficiency in the factory, and optimized production lines andinstallation of up-to-date equipment has boosted production
capacity up to 1.5 times compared to fiscal 2018, reduced
power consumption by around 30% per unit, and reduced
SF6 gas emissions. Moreover, the smart factory’s active useof smart cameras, automated equipment, and other IoTtechnologies achieves higher productivity and shorter leadtimes.
Achieving not only production innovation but work stylereform, environmentally friendly operation, and better quality,
the Maebashi Works is a model factory that has the potential
to maintain our market competitiveness for many years tocome. Looking ahead, we intend to extend the methods put
into use at this new factory throughout the Group.

NISSIN REPORT 2022

20

Review of Operations by Segment

Beam and PlasmaBusiness

In the Beam and Plasma Business, we apply our long nurtured high-voltage and charged particle technologies to manufacturing
equipment for cutting edge products. These include ion implanters used for manufacturing semiconductors and small/medium
high-definition flat panel displays (FPDs), electron beam processing for improving the quality of automobile tires and electric wires,and fine coating services designed to improve the performance of tools and automobile parts. This business segment offers
potential for future growth.

Business Description

Toward a Sustainable Future

Ion Implanters

In the development of equipment critical for the manufactureof a wide variety of semiconductors that support social
infrastructure, we are working to create equipment with a low
environmental impact by eliminating harmful substances andpromoting energy conservation.
We also contribute to improving the environmental
performance of finished products by supporting the
manufacture of power semiconductors, which are attracting
attention for their use in electric vehicles (EVs), hybrid electricvehicles (HEVs) and in energy-saving home appliances.

Ion implanter for semiconductor,
ion implanter for FPD

Electron Beam Processing
Electron beam processing system,
electron beam processing service

Ion Implanter for FPD

Fine Coating
Fine coating system,
fine coating service

Electron Beam Processing System

Medium-to-Long-Term Business Plan “VISION2025”
Our Growth Strategy

Ion implanter● Developing and expanding sales of equipment for manufacturing power semiconductors,

state-of-the-art semiconductors and large FPDs

● Strengthen earnings base by coordinating customer service (CS) with overseas subsidiaries

Electron beam processing● Expanding the existing business in the fields of tires, electric wire, foaming, CS, etc.

● Establishing new businesses for the printing market, CR-type electron beam processing

systems, etc.

Fine coating● Introducing films, in which we have a great deal of expertise, into the existing market

Expansion ofenvironmentallyfriendly products

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NISSIN REPORT 2022

Business expansion
in association withthe expansion of EVs

and expanding sites● Entering the non-engine parts market and new markets through new films,

new products, and new services

Expanding Sales of High-Temperature Ion Implanters for
Manufacturing SiC Power Semiconductors
Demand for ion implanter for semiconductor has risen along with the steady, robust demand forsemiconductors of recent years.
With superior characteristics such as efficiency, pressure resistance, and heat resistance, SiC(silicon carbide) power semiconductors are a growing market because of their role as a key devicein photovoltaic systems and electric vehicles and in smart power grids and the electrification ofmobility in general. Nissin Electric Group markets the world’s only high-temperature ion implantersystem capable of mass producing SiC power semiconductors, the IMPHEAT–II. Looking ahead,
we intend to grow our beam and plasma business for the SiC power semiconductor market andexpand sales to major SiC power semiconductor manufacturers not only in Japan but aroundthe world. We are also proud to note that IMPHEAT–II received the Semiconductor of the Year
2021 Grand Prix in the Semiconductor Manufacturing Equipment category sponsored byElectronic Device Industry News.

Ion Implanter for
SiC Power semiconductor“IMPHEAT-II”

Electron Beam Processing Technology Contributes toSociety and the Environment
Electron beam processing can improve the characteristics of materials
and add new functions to them. It contributes to society and theenvironment by saving energy in inverters by improving thecharacteristics of semiconductors and by extending expiration dates
of food with high functional food packaging.
The Nissin Electric Group will leverage the know-how cultivatedthrough our equipment development, sales, and electron beamprocessing service to provide support for growing environmentallyconscious material needs, such as for fulfill SDGs.

Achieves reduction of organic solvents and CO2
emissions in printing and curing of coating films

Effects of Electron
Beam Processinge eeImproved
strength

Fluidity
control

Improvedheat
resistance

Addition ofhydrophilic
properties

Electron beam

Realizes energy savings in inverters by improving
semiconductor characteristics

Material

Processing

Additionof waterrepellency
Sterilization
Instant
curingAddition ofmoisture
absorption
and heat
generation
properties

Used in the manufacture of high functional food packaging
and contributes to extending the expiration date of foodDeveloping MF720, a New DLC Coating System
Improving Performance and Service Life of Various Tools and Machine Parts
DLC (diamond-like carbon) film is known as a low-frictional resistance film widelyused in the tool, die, machine parts, and automobile parts fields.
The new DLC coating system MF720 uses arc discharge. Compared topast coatings, this new coating system helps improve coated part performanceand service life by reducing film surface roughness and by forming a precise yet
hard coating.

DLC film
coating system
MF720

NISSIN REPORT 2022

22

Review of Operations by Segment

Equipment andParts Solution BusinessThis business solves customer issues with solutions centered on the equipment and parts contract manufacturing in all industries,
leveraging the power system equipment manufacturing technology we have cultivated. In our contract manufacturing, we provide
Japanese quality from Thailand, Vietnam, and Myanmar at local cost using sophisticated technologies and state-of-the-art machining
equipment. In addition, we expect that business will develop to meet new needs by capturing market changes in the rapidly growing
ASEAN region.

Business Description

Toward a Sustainable Future

Contract Manufacturing ofEquipment and Parts

We develop our business by leveraging the characteristics of
our hubs in Thailand, Vietnam, and Myanmar, and contributeto the economic growth of the ASEAN region through job
creation and training engineers.
In addition, we contribute to the creation of a sustainable
society by proposing solutions that use manufacturing
technology to meet new needs for building local social
foundations, such as infrastructure development.

Sheet metal welding, cut processing,welding, surface treatments(painting and coating), assembly,
design contract, etc.

Market-Oriented Businessin the ASEAN Countries

Large machining center

Development and sales of productsthat meet new local needs

Fiber laser cutter

Medium-to-Long-Term Business Plan “VISION2025”
Our Growth Strategy

Strengthen Global Competitiveness by Leveraging the Characteristics ofEach Production Hub● Contract manufacturing of equipment and parts (semiconductor equipment, power system equipment,

general machinery, printing machines, automobile industry machinery, etc.)

Propose Solutions Focused on Metalworking Technologies● Equipment and parts contract manufacturing (machine tools and FA equipment, agricultural machinery,

construction equipment, electrical equipment, etc.)

Commercialization of Market-Oriented Business in the ASEAN Countries Basedon New Demand
Identifying demand resulting
from increasing environmental
awareness in emerging countries

23

NISSIN REPORT 2022

● Environmental field (waste disposal, wastewater treatment, etc.)● Labor saving/production efficiency improvement(improvement of distribution efficiency, labor saving in distribution)

Contract Manufacturing of Equipment and Parts
From sheet metal welding, cut processing, surface treatment to assembly, we provide equipment and parts contract manufacturing for
all industries through our in-house integrated manufacturing. We provide Japanese quality at local cost using sophisticated technologies
and state-of-the-art machining equipment based on Nissin Electric’s power systems equipment manufacturing technology and know-how.
With newly added Myanmar joining Thailand and Vietnam, we now conduct our contract businesses from three bases. Each ofthese bases contribute not only to the steady development of the ASEAN region both in their home country and in neighboring
countries, they also contribute to economic growth by creating jobs and training technicians.
Sheet metal processing line
Product /equipment design

Pressing and cutting● Laser cutter

Bending
Press brake● Bending roller● Crank press●● NC turret punch press● CNC gas cutting machine

Welding

Surface treatment● TIG welding● Epoxy, acrylic,polyurethane paint● MIG welding● Arc welding● Silk screening● Brazing● Zinc, silver plating● Welding robot● PVD coating

Cutting processing line
Cutting

Cutting processing● CNC gas cutting machine● Horizontal machining center● Band saw● Vertical machining center● CNC lathe● CNC tapping machine and others

Market field

Packing and shipping

Inspection

Assembly

Machine tools, FA equipment, Agricultural machinery, Construction equipment, Electrical equipment, Semiconductor equipment,
Power system equipment, General machinery, Printing equipment, Automobile industry machinery, etc.

In Partnership with Overseas Production Bases, Launching Outside Sales
Metalworking Business to Produce High Value-Added Parts
A partnership between overseas Group company production bases in Thailand,
Vietnam, and Myanmar and Nissin Electric machining base has launched our firstoutside sales metalworking business. The business exports parts produced at
Group overseas bases to our machining base in Japan, where high-precisionfinishing work is added to the parts.
The business makes it possible to do contract metalworking for manufacturers
in Japan requiring a high degree of technical expertise and also achieves better
cost performance compared to doing all of the processing in Japan. In addition, by
refining currently held technology and skills and deploying it at our overseas bases,
the business contributes to the training of local technicians.

Nissin Electric (Thailand) Co., Ltd.
Factory area: 39,383 m2; Employees: 881
Start of operations: 1988

Nissin ElectricCo., Ltd.
Equipment
andParts Solution
Business
Management
Division

Outside sales metalworking flow
1. Metal canning and welding
at overseas production base

2. Exported to Head Office and Works,
where a precision cutting
machine adds precision
machining followedby final finish andinspection

3. Finished parts
delivered tocustomerNissin Electric Vietnam Co., Ltd.
Factory area: 22,620 m2; Employees: 497
Start of operations: 2006

Nissin Electric Myanmar Co., Ltd.
Factory area: 1,500 m2; Employees: 27
Start of operations: 2021

Nissin Electric Co., Ltd.
(Equipment and Parts
Business Group)(Technical Team)

Creating a Viable Market-in Business in the ASEAN Countries
In preparation for commercializing a market-in business based on new demand in the ASEAN countries, we are assessing local needs
with the aim of launching a business in fiscal 2022 focused on environmental fields such as garbage processing and water for dailyuse. Looking ahead, we will be sensitive to the emergence of new needs across the ASEAN countries so that we can apply our
decades of manufacturing expertise to enriching the lives of the people who live there.

NISSIN REPORT 2022

24

Our Commitment to CSR

Fulfilling Our Responsibilities to Stakeholders
Based on Our Basic CSR Promotion Policy
Basic CSR Promotion Policy(revised April 2017)

1) We will pass on our business mindset
and grow in a sustained manner as agroup of companies that will harmonize
with the environment and contributetoward realizing a vibrant society.
2) We will further solidify the “Five Trusts”
with stakeholders embodied in our
Principles of Activities which state “Integrity,
Trust and Long-term Relationships.”
3) We will emphasize “coexistence withthe environment” and strive to popularize
products and services that mitigate
environmental impacts, while also reducing
the environmental impacts of our own
business activities.
4) We will carry out fair and transparent
corporate management grounded incompliance with laws and social norms.

Through corporate activities that support the foundations of society
and industry, the Nissin Electric Group will harmonize withthe environment and contribute toward realizing a vibrant society.

Sustainableglobal environment

VISION2025

日新一 新Society where every
person can play
an active role

NISSIN ISSIN

Customer
Trust

Employee
Mutual Trust

Core CSR Fields

Shareholder
Trust

Five Trusts

1) Solidify the “Five Trusts”
2) Initiatives for global environmental
conservation
3) Initiatives for fair and transparent
corporate management

Partner
Trust“Integrity,

Societal
Trust
Principles of Activitiess”
Trust and Long-term Relationship

Business Mindset“Venture
The
Spirit” fostered since our founding namespiritan y“Opoen-min f “New Each Day” embedded in our comp nologies”
dedness anchd the ability to digest different cultures and te

Promoting Activities Through the CSR Promotion Committee
The CSR Promotion Committee is mainly responsible for thecompany’s CSR efforts as a company-wide cross-functionalorganization chaired by the President of Nissin Electric Co., Ltd.
Information is shared with overseas group companies so thatefforts can be made to tackle the various issues they face basedon their local circumstances.
Results are reported to top management, including the Boardof Managing Directors, and activities are continued based on the
directions and feedback of top management provided as needed.

CSR promotion structure
President /Board of Managing Directors
Directions /Feedback

Targets /Results reporting

Customers, Shareholders,Society, Partners (stakeholders)Public hearings

CSR Promotion Committee (covers CSR promotion of the Nissin Electric Group,summarizes results and discloses information internally and externally)
Support / Feedback / Training

Results reporting / Proposals

Departments / Subsidiaries / Employees

25

NISSIN REPORT 2022

Public disclosureResponsibility to Stakeholders and Opportunities for Engagement
Overview of stakeholders

Customers
We supply various products andservices to customers in Japan andoverseas in the three core segmentsof Power Supply and Environment
System Business, Beam andPlasma Business, Equipment andParts Solution Business.

Main responsibilities

Main forms and opportunities of engagement

Supply safe, high quality products and services thatare useful to society

Engagement through daily sales and marketing activities

Provide trustworthy customer services that turninto long-term relationships

24-hour acceptance of inquiries and notifications of defects andswift responses
Dissemination of information to facility managers
Customer training on product usage

Provide accurate and appropriate information
about products

Engagement through facility assessments and maintenanceEngagement concerning the impact of products on
the environment
Exchange of information at exhibitions and trade fairs
Information provision through product brochures and websites

Sustained enhancement of shareholder value
Appropriate level of dividends
Timely and appropriate disclosure ofcorporate information

Annual shareholder meetings and earnings presentations
Brochure To Our Shareholders
Information provision through websites
Response to shareholder inquiries
Investor presentations and response to interview requests

Compliance with social norms such as laws

Compliance with various laws and regulations

Achieve harmony with the environment

Engagement concerning the impacts of products on
the environment
Compliance with investigations by the mass media and governments
Information provision through websites

Act as a member of society

Support the development of engineers
Corporate citizenship activities through cooperation withvarious outside organizations

Respect the local culture and customs
Cooperation with local communities

Cooperation with historical and cultural asset preservation
mainly in Kyoto
Cooperation with local environmental conservation activities
Participation in and sponsorship of local events

Engage in honest and fair relationships
Cooperate for the coexistence and mutual
prosperity of partners
Cooperate for the coexistence and mutual
prosperity of distributors

Engagement through daily procurement activities
Partner meetings
Engagement through partners surveys
Information provision through websites
Business Partner Gatherings and engineering seminars
for sales personnel
Integration of order targets

Respect for human rights, character,
individuality and diversity

Human Rights Promotion Committee
Administration of Help Line Desk

Develop human resources

Education and training
Personnel evaluations and interviews

Create workplaces that are safe and employee friendly

Central Safety and Health Committee andlabor-management meetings
Employee satisfaction survey and meetings between the
President and employees
Dissemination of President’s message on the internal company
website and publication of company newsletter

Shareholders
We have 4,991 shareholders and thetotal number of shares outstanding isaround 100 million. The breakdown ofshareholders includes 19% financial
institutions, 58% domestic
corporations, 16% foreign
corporations, 6% individuals, and 1%
other (as of March 31, 2022).

Society
The Nissin Electric Group operates
around 40 business sites in Japanand abroad (as of March 31, 2022).

Partners
A total of 66 partners participated inpartner meetings held for suppliers(results for the second half of fiscal
2021; Nissin Electric Co., Ltd.).
Additionally, 40 distributors
participated in Business Partner
Gatherings (results for fiscal 2021;
Nissin Electric Co., Ltd.).

Employees
The Nissin Electric Group employs aworkforce of 5,382.
This workforce is broken down into
54% in Japan and 46% overseas(as of March 31, 2022).

NISSIN REPORT 2022

26

Our Commitment to CSR

CSR Activities―Plan/Results for Fiscal 2021 and Policy for Fiscal 2022
Environment

Main related SDGs

Initiatives for Global Environmental
Conservation
Initiative Theme

Prevention of global
warming

Emission reductions

PLAN

Provide products andservices that resolve
customer issues● Developed small group activities in divisions with high energy use and high SF6
gas emissions● Strengthened management of reducing office energy use● Strengthened management of reducing transport-related fuel consumption● Achieve target for total waste volume reduction● Achieve reduction target for volatile organic compounds (VOC) emissions
into the atmosphere● Achieve water use reduction target● Developed small group activities in divisions with high waste emissions● Strengthened efforts to sort and collect waste and promotion of recycling waste● Strengthened efforts and management of reducing VOC emissions● Developed small group activities in divisions with high water use

Main related SDGs

P.39-41
PLAN

ESG : E Environmental S Social

G Governance

DO (Fiscal 2021 Results)● Roll out quality improvement measures as entire Nissin Electric Group by
sharing recurrence prevention measures and preventive measures, along withmanagement of changes made to each

● Thoroughly reviewed and reinforced implementation of measures by using
the QC method for the group● Held Nissin Electric Group QA Conference monthly● Conducted study of failure lessons and workshops● Make improvements by collecting and analyzing customer feedback● Conducted a customer survey to collect customer opinions and provided
feedback and improvement proposals to divisions● Use customer charts (CS charts) to propose maintenance cycles andreplacement times for parts with a limited life to customers● Conduct LCE activities to prevent product accidents due to aging degradationand improve the reliability of maintenance work by introducing new technologies● Provided maintenance proposal after customer visits (regular replacement
chart of parts with a limited life, etc.)● Performed customer equipment operation “life cycle” proposals (service life
extension maintenance proposal, etc.)● Proposed maintenance and upgrade plan through line inspections without
interrupting power and facility assessments● Improved efficiency of inspections and reliability by automating protection
relay tests during inspections● Expand business to solve energy management problems, and build andexpand win-win relationships with customers● Identified customer needs and rolled out solutions that made effective useof distributed energy resources and renewable energy● Identify issues in public water treatment and propose solutions● Proposed solutions such as nitrification control and energy conservation● Proposed upgrade plan based on the current state of aging equipment● Proposed management functions for technology succession andmaintenance efficiency improvement in DBO projects

P.42, 51

Shareholder Trust

ESG : E Environmental S Social

G GovernanceInitiative Theme

PLAN

Enhance governance system
and information disclosures inaccordance with the
Corporate Governance Code● Conduct measures necessary (hold Nomination and Compensation Committee,
analyze and evaluate effectiveness of Board of Directors, etc.) for sustaining
compliance (implemented)● Check the details of the Corporate Governance Code revisions (June 2021) in
response to changes to stock exchange listing requirements to verify thatthey are in compliance● Held Nomination and Compensation Committee● Establish and held Parent-Child Transaction Deliberation Committee● Release Corporate Governance Report● Conduct face-to-face IR activities● Conduct IR activities using publications and other materials● Held individual meetings and conference calls (web meetings, etc.)● Held earning presentation to institutional investors by webinar and did not
hold company presentation for individual investors due to the COVID-19
pandemic● Published earnings reports, annual report, fact book, and other materials

Enhance investor
relations activities

Initiative Theme

DO (Fiscal 2021 Results)

P.43-44

Societal Trust
PLAN

ESG : E Environmental S Social

G Governance

DO (Fiscal 2021 Results)● Conduct initiatives for expanding the horizons of engineers and support theirschool attendance in Japan and overseas● Continued to operate full grant-based scholarship program● Held on-site science classes for elementary school students corresponding
to the new normal● Provided assistance to expand the horizons of engineers

Preservation of historicaland cultural assets mainly
in Kyoto● Expand monetary donations to projects and organizations who agree with
our mission● Maintain, preserve, and use Sekison-tei● Continued assistance by coordinating with governments● Coordinated with government on new grant recipients● Continued to preserve the Sekison-tei building and garden

Cooperate with local
environmental conservation
activities● Cooperate with forest preservation● Participate in waste reduction activities● Studied forest preservation activities in the new normal

Support the developmentof engineers

27

DO (Fiscal 2021 Results)● Achieve GHG emissions (Scope 1 + 2) reduction target by reducing energy
use and SF6 gas atmospheric emissions● Achieve office GHG emissions reduction target● Achieve transport-related GHG emissions reduction target

Initiative Theme

Promotion of life cycle
engineering (LCE)

G Governance● Applied for SBT initiative certification● Established evaluation standards for products in development in order toreduce GHG emissions (Scope 3)● Launched Nissin Electric Group Environmental Promotion Committee

Customer Trust

Use customer feedback
to make improvements

ESG : E Environmental S Social● Acquire SBT initiative certification● Achieve greenhouse gas (GHG) emissions (Scope 3) reduction target withenvironmentally friendly products and services

Trust

Quality improvement
activities

P.31-38NISSIN REPORT 2022

○: Results, ＊: Issues

CHECK

ACTION (Fiscal 2022 Policies)○ Acquired SBT initiative certification○ Achieved GHG emissions (Scope 3) reduction target● Establish and support measures for achieving SBT initiative certification target● Strengthen management of the Nissin Electric Group Environmental Promotion Committee
for promoting the development of environmentally friendly products and services● Disclose information addressing TCFD recommendations○ Achieved GHG emissions (Scope 1 + 2) reduction targets○ Achieved office GHG emissions reduction target○ Achieved transport-related GHG emissions reduction target● Strengthen promotion of and control over energy conservation activities, including energy
conservation checkups for divisions with high energy use● Strengthen promotion of and control over energy conservation activities, including energy
conservation checkups for divisions with high SF6 gas emission● Promote upgrading to low-GHG emission equipment through the introduction of a corporate
internal carbon pricing system○ Achieved total waste volume reduction target○ Achieved reduction target for VOC emissions into the atmosphere＊ Did not achieve target for water use reduction● Promote waste 3R activities, strengthen waste volume management● Strengthen management of VOC emissions● Strengthen promotion of and management of water conservation activities (including
recycling and reuse) in divisions with high water use○: Results, ＊: Issues

CHECK

ACTION (Fiscal 2022 Policies)○ Conducted root cause analysis course with the Human Resources Development Department○ Regularly held monthly Nissin Electric Group QA Conference○ Held 2 lessons and 1 workshop on lessons learned about the study of failure● Improve quality by applying the “degree of quality assurance” concept to failure case examples● Make a routine of learning about the study of failure in-house (hold basic education and practical sessions)● Roll out quality improvements through design inspections in Safety and Quality Enhancement
Project activities○ Developed improvement measures based on concrete opinions in descriptive-form surveys:
285 survey responses collected and posted on the internal company website● Continue to make further improvements using customer opinions○ Inquired about customer equipment use plans and prepared appropriate “life cycle” proposals○ Delivered “maintenance cycle chart” and “regular replacement chart of parts with a limited life”
from CS charts＊ Performed more than 100 proposals per fiscal year

● Deliver “regular replacement chart of parts with a limited life” and “maintenance cycle chart”
to customers in order to ensure that “trust” and “long-term relationship” with customers
continue● Improve work efficiency by promoting IT in the workplace○ Implemented many solution proposals incorporating distributed energy resources centered on
ENERGYMATE○ Implemented technical proposals for wind power generation making use of power systemanalysis engineering to secure stable power quality● Strengthen proposals for energy-saving, distributed energy resource, and environmentallyfriendly products to realize carbon neutrality● Strengthen technology proposals addressing an operation plan to generate 24GW of wind
power in FY2030 through de-carbonization and deregulation○ Expanded proposals for promoting energy conservation by upgrading equipment, promoted
nitrification control proposals○ Drafted upgrade plan from the current state of aging equipment○ Applied DBO to realizing proposals for solutions for making technology succession andmaintenance efficiency improvement＊ Continued solution proposals for achieving more efficient maintenance management● Expand solution proposals, such as reducing CO2 emissions, energy conservation,
operational efficiency improvements, and reducing lifecycle costs (LCC) to deepen
customer trust● Promote solution proposals and expand solution items aimed at finding solutions for thecustomer issues of technology succession and maintenance efficiency improvement● Promote solutions to local government needs, such as ensuring sustainable energy○: Results, ＊: Issues

CHECK

ACTION (Fiscal 2022 Policies)○ Held Nomination and Compensation Committees (May, November, March)○ Established (November) and held (November and January) Parent-Child Transaction
Deliberation Committees○ Released Corporate Governance Report (December), full compliance (implemented)● Conduct measures necessary (hold Nomination and Compensation Committee, holdParent-Child Transaction Deliberation Committee, and analyze and evaluate effectiveness ofBoard of Directors, etc.) for sustaining compliance (implemented)○ Held 108 individual meetings and conference calls＊ Held earning presentation to institutional investors by webinar and did not hold company
presentation for individual investors due to the COVID-19 pandemic＊ Conducted explanations that enable investors to deepen their understanding● Improve communication with investors that deepens their understanding○: Results, ＊: Issues

CHECK

ACTION (Fiscal 2022 Policies)○ Provided scholarships to 28 technical graduate students＊ Standardized teaching materials for on-site science classes for elementary school students
corresponding to the new normal○ Provided assistance to expand the horizons of engineers● Continue to operate full grant-based scholarship program● Increase the number of elementary schools conducting on-site science classes corresponding
to the new normal● Provide assistance to expand the horizons of engineers○ Provided assistance by coordinating with governments○ Expanded support in the field of preservation and restoration of cultural properties○ Displayed expertise for the maintenance and preservation of Sekison-tei● Continue assistance by coordinating with governments and consider new grant recipients● Continue support for human resource development related to the preservation andrestoration of cultural properties● Continue preservation of the Sekison-tei building and garden○ Planed and trial run for forest conservation activities in the new normal＊ Continued cooperation with Gion Festival Zero-Waste Project in the new normal● Prepare 5-year forest preservation activities plan
● Provide aid for carbon-free lifestyle promotion projects● Study employee participation type program

NISSIN REPORT 2022

28

Our Commitment to CSR

CSR Activities―Plan/Results for Fiscal 2021 and Policy for Fiscal 2022
P.45-46

Partner Trust
Initiative Theme
Promotion of
CSR procurement
Partnerships with partners

PLAN

DO (Fiscal 2021 Results)● In addition to survey in the headquarters region and Maebashi region,
started doing surveys at group companies in Japan● Strengthen cooperation with partners and build win-win relationships● Held partner meetings to further strengthen cooperation with partners● Visited business partners to further strengthen cooperation withtransportation business partners

Initiative Theme

Promote educational andtraining opportunities that
support personal andprofessional growth

P.47-50
PLAN

Strengthen communication

DO (Fiscal 2021 Results)● Conduct stress checks● Conducted stress checks, including group companies● Increase opportunities for human resource development (target: 6,800 or
more participants/year)● Promote career development for young employees and enhance global education● Enhance training of each technology and skill and enhance the necessary education
for work to develop the necessary personnel for business at an early stage● Systematically held education and training for the eligible employees at thenecessary time (Increased the training curriculum, introduced trainer/mentor
system and career design training)● Expand the employment of people with disabilities and achieve the statutory
employment rate revised in 2021 (target: 2.3% employment rate of people
with disabilities in the group)● To establish a stable business operation and grow the business of Nissin
Heartful Friend, expanded range of contract business (manufacturing
support, etc.) and increased volume of business (digitization, flower bed
management, etc.)● Enhanced Nissin Heartful Friend employee training (established monthly
targets, enhanced training, etc.)● Encourage use of the career support system (more than 5 persons/year)● Use work from home for childcare, elderly care, and treatment of illness (60%of female employees who are balancing work and family)● Implemented career support for female employees who leave work due tochildbirth or childcare● Implemented trial work from a place other than home for childcare, elderly
care, and treatment of illness● Encourage male employees to take childcare leave (8 or more persons/year)● Encourage employees to take annual paid leave (67% or more)● Promoted the use of the planned paid leave system and the memorial
paid leave system● Held seminar on balancing work and elderly care

● Continue to hold discussions with newly appointed managers and chiefs in
fiscal 2020
● Continue to hold the quadrilateral subsection chiefs networking session● Did not hold meetings between employees due to COVID-19 pandemic● Did not hold quadrilateral subsection chiefs networking sessions due to
COVID-19 pandemic● Conduct an employee satisfaction survey and analyze the results● Provided analysis results to division general managers/had interviews withexecutive officers● Standardized analysis format by division general managers● Analyzed high evaluation divisions and sorted initiative case examples

Main related SDGs

Fair and Transparent Corporate Management

Thorough compliance

Thorough risk
management

Utilizing ICT and thoroughinformation security

29

NISSIN REPORT 2022

G Governance● Continued to conduct comprehension tests of e-learning related laws andregulations and safety work and hands-on training● Implemented improvements to unsafe behavior and unsafe conditions
through factory inspections and safety patrols● Took measures to strengthen extracting cases of “near misses” and“concerns”

Corporate Management
Initiative ThemeESG : E Environmental S Social● Take measures aimed at “zero serious accidents and residual disability
accidents”● Take measures to eliminate the three serious occupational accidents(transport-related injuries, electric shock and falls)● Promote people and systems that are conscious of safety

Utilize diverse workforce

Encourage diverse work
styles and work-life balance

G Governance● Enhance CSR activities throughout the supply chain by conducting CSR
procurement surveys and other efforts

Employee Mutual Trust

Promote safety andhealth awareness

ESG : E Environmental S Social

P.51-53

PLAN

ESG : E Environmental S Social

G Governance

DO (Fiscal 2021 Results)● Continue to maintain the compliance system● Continue to hold compliance training sessions● Continue compliance awareness activities● Held Compliance Committee 4 times a year
● Conducted training sessions for group employees and training sessions for
executives● Disseminated compliance messages on the internal company website andpublished articles about compliance in company newsletter● Understand risk situations and determine management policy and measures● Identify risks facing the Nissin Electric Group and determine response
measures● Roll out various measures to address a large-scale disaster● Held Risk Management Committee meeting once a year
● Held Risk Management Working-Level Committee meetings 4 times a year
● Held disaster prevention drills as planned, changed method for personalsafety confirmation drill● Update information management system in response to the revision of the
Act on the Protection of Personal Information● Rolled out application to group company● Reviewed related company rules and regulations, raised awareness within company● Supported group company establishment and revision of information
management rules and regulations● Implement various measures at Nissin Electric and domestic group companies● Implement various measures aimed at overseas group companies● Continued measures to prevent malware infections (delete zip files,
e-learning, email training, etc.)● Enhanced measures against infections and intrusions (attack detection andcontainment)● Applied security guidelines and thorough essential measures for overseas
group companies: countermeasures against malware infections (update
OS, virus scans, install EDR, etc.), countermeasures to prevent importantdata loss (server installation, offline backup, etc.)

○: Results, ＊: Issues

CHECK

ACTION (Fiscal 2022 Policies)○ Conducted CSR procurement surveys to all business partners with 90% of total transaction
amount＊ Spread CSR procurement guidelines to partners● Advance educational activities through daily business dealings and workshops● Facilitate thorough understanding of CSR procurement guidelines by partner● Conduct third CSR procurement survey in the headquarters region, expand surveys at groupcompanies in Japan, and begin doing surveys at group companies overseas○ Held partner meetings○ Visited major business partners and exchanged opinions focusing on safety and quality＊ Further strengthened relations with business partners● Strengthen partnerships by continuing meetings focusing on visits to business partners○: Results, ＊: Issues

CHECK

ACTION (Fiscal 2022 Policies)○ Zero cases of “serious accidents and residual disability accidents”○ Conducted priority management and safety measures according to a weighted evaluation of
workplace accidents＊ Eliminated accidents caused by falls and transport operations (thorough basic work and operation)● Take measures aimed at “zero serious accidents and residual disability accidents”● Take measures to eliminate the three serious occupational accidents● Create people and systems that are conscious of safety○ Maintained a high stress check implementation rate of 92%, interviewed with high stress individuals
and conducted group analysis, and formulated improvement plan for high-stress workplaces● Analyze stress check and employee satisfaction survey results● Issue 2022 Health Management Declaration○ Based on results of after-training questionnaire and division specific needs, completed
enhanced training content and promoted education and training planned at start of businessyear (Participants for year: 4,962)● Increase opportunities for human resource development (target: 6,500 or more participants/year)● Promote career development among young employees, expand global education including
overseas group companies● Enhance training of each technology and skill and enhance the necessary education for work
to develop the necessary personnel for business at an early stage○ Achieved target: employment rate of 2.54% for the group (as of the end of March 31, 2022)＊ Prepared a stable office operation environment and organization○ Built periodic education system● In order to achieve a stable business operation for and expand the business of Nissin
Heartful Friend, promote increasing new hiring and expanding range of business activities
ahead of the April 2023 revision of the statutory employment rate
● Develop new business and stable operation● Hold periodic employee training○ Users of career support system (15/year)○ Trial work from a place other than home for childcare, elderly care, and treatment of illness(2 people)● Use of career support system for female employees who leave work due to childbirth or childcare (100%)● Use work from home for childcare, elderly care, and treatment of illness (60% of female
employees who are balancing work and family)● Identify issues and set concrete policy and milestones for achieving FY2030 targets (10% ormore for female managers, 30% or more for female employees hired)○ Male employees taking childcare leave (13 persons/year, 25%)
＊ Improved percentage taking annual paid leave:
FY2019: 73.0% (16.4 days); FY2020: 68.2% (15.3 days); FY2021: 71.0% (16.2 days)● Encourage male employees to take childcare leave (40% or more/year)● Encourage employees to take annual paid leave (70% or more)＊ Did not hold meetings between employees due to COVID-19 pandemic＊ Did not hold quadrilateral subsection chiefs networking sessions due to COVID-19 pandemic● Hold online meetings for newly appointed managers and chiefs who have not been able totake part in meetings since the COVID-19 pandemic● Hold the quadrilateral subsection chiefs networking session in the new normal○ Conducted interviews by rank and developed more specific measures by department inaddition to overall measures＊ Did not present and promote initiative case examples● Conduct the fiscal 2022 employee satisfaction survey and verify the results of improvements● Present and promote initiative case examples○: Results, ＊: Issues

CHECK

ACTION (Fiscal 2022 Policies)○ Prepared and implemented compliance priority governing laws and verified progress by theCompliance Committee (meets 4 times a year)○ Held training sessions for group employees in Japan, training sessions for overseas group
employees, and training sessions for company executives○ Disseminated compliance message on the internal company website (monthly), publishedarticles about compliance in company newsletter (every issue)● Continue to maintain the compliance system● Continue to hold compliance training sessions● Continue compliance awareness activities● Establish and publicize in-house rules for human rights due diligence○ Reported FY2020 summary and FY2021 activity policy○ Shared risk cases and solved problems for 16 themes○ Held disaster prevention drills at 11 business sites＊ Solved issues discovered during disaster prevention drills and deployed them at all business sites,
improved transmission safety confirmation accuracy by conducting monthly personal safety confirmation email tests● Review measures in response to large-scale natural disasters and epidemics withmedium-term plan
● Identify business risk, and study and implement measures● Implement disaster prevention drills with an eye toward the new normal and further improve
firefighting and emergency technology○ Revised company personal information protection rules in response to the revision of personal
information-related laws
○ Prepared company information management rules and regulations (established, revised:
2 companies; revision in progress: 1 company) and personal information protection rules(revised: 2 companies) at group companies in Japan● Scheduled for revision to raise effectiveness of company information management rules and regulations● Conduct training of group employees based on revised company information management
rules and regulations● Continue to raise awareness through company newsletter and internal company website to
inform group employees of the importance of information management○ Continued measures because they were effective to some extent for Nissin Electric anddomestic group companies○ Completed action through the application of essential measures based on security
guidelines for overseas group companies and planned to raise the management levelaccording to the risk level of each overseas company● Continue and expand current measures in Japan● Take action on supply chain security risk, including business partners● Raise the management level overseas by developing activities in line with security guidelines

NISSIN REPORT 2022

30

Initiatives for
Global Environmental Conservation
We are committed to reducing the environmental impacts of the entire Nissin Electric Group by developing
environmentally friendly products and services and environmental management system utilization.

The Nissin ElectricGroup Environmental Policy

Environmental Management Structure
Environmental
Management Officer

Environmental Committee
Chair: President
Vice Chair: Executive officer incharge of the environment

Executive officer incharge of the environment

Environmental policy
We strive to prevent environmental pollution, use
resources sustainably and respond to climate change.
We comply with environmental laws and regulations
and strive to continually improve our environmental
activities.
We are committed to the following activities with theaim of reducing these effects on the environment.

Nissin Electric Group
Environmental Promotion
Committee
Environment Manager
General Manager of Safety
and Environment Department

Secretariat(Environmental Management Division,
Safety and Environment Department)

Nissin Electric andGroup Companies in Japan

Focus environmental activities
1 Develop and supply environmentally friendly products●
and services
2 Reduce energy usage●
3 Reduce SF6 emissions into the atmosphere●
4 Promote less usage of resources as well as the●
reduction and recycling of waste
5 Prevent environmental pollution due to emission and●leakage of chemical substances into the environment

Overseas
Group Companies

Umezu

Kujo

China

Taiwan

Kuze

Shiga

Thailand

VietnamToji

Maebashi

USA

India

Chiba

Saga

MyanmarHorikawa

3 branches
and 6 offices

Input-Output (FY2021)

Input

OutputTotal energy input

CO2

616 TJ● Electricity● Heavy oil● Kerosene● City gas● Light oil● LPG(t-CO2)80,00040,000

(TJ)
600

590

580

590

38,658 t-CO2

616

60,00036,372

34,31935,0190

400

SF6 gas emissions

54,306 t-CO2(t-CO2)80,00038,65860,742

51,78948,9202019

2020

54,30640,00020,000500

20,000

2018

2019

2020

0

2021

(FY)

2018

2021

(FY)

t-CO2: Tons of carbon dioxide. Unit indicating the amount of greenhouse gas emissions.

300
200
100
0

SF6 gas60,000● Gasoline

700

Energy-derived
CO2 emissions

2018

2019

2020

2021

(FY)

Water resource input
Groundwater
Clean water
Total

31,419 m
336,780 m
368,199 m

Development /Manufacturing /Inspection

Amount of waste and zero emission rate*
Amount of industrial waste + Amount of general waste(t/year)
6,000
5,000

3
3

4,000
3,000

Amount of waste incinerated without heat recovery + Amount of landfill waste
Zero emission rate
（%）
55.5
54.7
52.5
60

4,802

4,287
3,053

4,451
3,516

50

3,322

2,000
1,000

3

TJ: Terajoule. Terra stands for 1 trillion.
A joule is a measure of heat capacity.

0

2018

2019

2020

2,433
9.6 812
2021

40
30
20
10
0
(FY)

Total volume
of wateremissions

201,362m

3* Zero emission rate (%) = (Amount of waste incinerated without heat recovery +Amount of landfill waste) ÷ (Amount of industrial waste + Amount of general waste +Amount of valuable materials）×100

Scope of data: For FY2021 Nissin Electric Co., Ltd. and the nine Japanese group companies of NHV Corporation, Nissin Business Promote Co., Ltd., Nissin Denki Shouji Co., Ltd., Nissin Systems Co., Ltd.,
Nissin Ion Equipment Co., Ltd., Nippon ITF Inc., Nissin Pulse Electronics Co., Ltd., Nissin Heartful Friend Co., Ltd., Auland Co., Ltd., and the 12 overseas group companies of Nissin Electric (Thailand) Co., Ltd.,NHV America Inc., Nissin Allis Electric Co., Ltd., Nissin Electric (Wuxi) Co., Ltd., Beijing Hongda Nissin Electric Co., Ltd., Nissin Electric Wuxi Co., Ltd., Nissin Electric Vietnam Co., Ltd.,
Nissin Advanced Coating (Shenyang) Co., Ltd., Nissin Advanced Coating (Tianjin) Co., Ltd., Nissin Advanced Coating Indo Co., Private Ltd., NHV Accelerator Technologies Shanghai, Nissin Electric Myanmar Co., Ltd.
(until FY2020 including Nissin Ion Hightech (Yangzhou) Co., Ltd.)

31NISSIN REPORT 2022

E Environmental S Social

G GovernanceStatus of ISO14001 Environmental Management System Certification
ISO14001 certified companies and works in Japan

Nippon ITF Inc.

Yes

Nissin Pulse Electronics Co., Ltd.

Yes

Auland Co., Ltd.

Yes

Nissin Systems Co., Ltd.

Yes

●

●

●
●

●

●

Branchesand offices

No

Horikawa
site

Nissin Business Promote Co., Ltd.

Saga site

Yes

Chiba site

Nissin Ion Equipment Co., Ltd.

Maebashi
site

●

●

Toji site●

Yes

Shiga site

Kujo siteYes

NHV Corporation

Kuze site

Umezu site

Has
production
site

Nissin Electric Co., Ltd.

●

● Nissin Electric (Thailand) Co., Ltd.

(Thailand)[Certified on January 24, 2007]● Beijing Hongda Nissin Electric Co., Ltd.

(China)[Certified on September 27, 2009]●●●

ISO14001 certified overseas
group companies● Nissin Electric (Wuxi) Co., Ltd.

(China)[Certified on November 3, 2010]

●
●

●
●

Targets and Results… Targets not achieved

Targets for FY2021

Performance for FY2021 Evaluation(1) Reduce greenhouse gas emissions fromproduction sites by 6% compare with
FY2018Reduce by 3%

Reduced by 4.3%

(2) Reduce energy consumption per unit atproduction sites by 4% compare with
FY2018Reduce by 3%

Increased by 10.4%(3) Reduce energy consumption per unit at
offices by 4% compare with FY2018

Reduce by 3%

Reduced by 23.0%(4) Reduce CO2 emissions per unit fromtransportation by 4% compare with
FY2018Reduce by 3%

Reduced by 3.7%

(5) Reduce greenhouse gas emissions
from SPSS

Achieve 100％ target

Achieved 100%(1) Reduce waste volume per unit by 4%compare with FY2018

Reduce by 3%

Reduced by 42.4%● Thoroughly separated industrial waste and(2) Reduce water usage per unit by 4%compare with FY2018

Reduce by 3%

Increased by 14.6%● Promoted renewal of water pipes

Reduction of(1) Reduce volatile organic compounds(VOC) emissions per unit by 4%
substances ofcompare with FY2018
environmental concern

Reduce by 3%

Reduced by 24.1%● Promote solvent recovery(1) Promote the conservation of biodiversity

Investigate endemic
species

Investigated endemic
species● Planting based on survey results(1) Achieve the registration of 25% of new
products as “Eco Mind” products

Constructa mechanism

Constructeda mechanism● Launched a mechanism(2) Increase the ratio of Eco-products insales to 35%

Constructa mechanism

Constructeda mechanism● Launched a mechanism(3) Reduce greenhouse gas emissions
from shipped products by 6% comparewith FY2018

Reduce by 3%

Reduced by 18.8%● Expanded sales of environmentally friendly products(1) Strengthening the management ofchemical substances in products

Gathering information

Gathered information
on applicable products● Gathering information on relevant regulations and

Item

Reduction of environmental impacts from business activities

Global warming
prevention /Promotion ofenergy saving /Reduction ofSF6 gas emissions

Promotion of
resource conservation
and recycling

Conservation of
biodiversity

Reduction of environmental
impact from products

Expansion ofenvironmentallyfriendly productsManagement ofchemical substancesin products

Initiatives and Targets for FY2022… Targets achieved

Example of Activities● Promoted installation of equipment to reduceSF6 gas emissions● Promoted small group activities● Implemented once-monthly Eco Work Day(leaving work on time and switching lights off at workplaces)● Established Energy Conservation Promotion Office● Controlled temperature of air conditioning systems● Implemented once-weekly Leave Work on Time Day

and once-monthly Eco Work Day (leaving work on timeand switching lights off at workplaces)● Improved efficiency of truck cargo loading● Reduced number of take-home from construction sites● Expanded sales of control systems for distributed

energy resources● Improved yield and make design changes

valuable materials● Specified endemic species at overseas locations

products conformity

Scope of data: Nissin Electric Co., Ltd. and the nine Japanese group companies of NHV Corporation, Nissin Business Promote Co., Ltd., Nissin Denki Shouji Co., Ltd., Nissin Systems Co., Ltd.,
Nissin Ion Equipment Co., Ltd., Nippon ITF Inc., Nissin Pulse Electronics Co., Ltd., Nissin Heartful Friend Co., Ltd., Auland Co., Ltd., and the 12 overseas group companies of Nissin Electric (Thailand) Co., Ltd.,NHV America Inc., Nissin Allis Electric Co., Ltd., Nissin Electric (Wuxi) Co., Ltd., Beijing Hongda Nissin Electric Co., Ltd., Nissin Electric Wuxi Co., Ltd., Nissin Electric Vietnam Co., Ltd.,
Nissin Advanced Coating (Shenyang) Co., Ltd., Nissin Advanced Coating (Tianjin) Co., Ltd., Nissin Advanced Coating Indo Co., Private Ltd., NHV Accelerator Technologies Shanghai, Nissin Electric Myanmar Co., Ltd.

NISSIN REPORT 2022

32

Initiatives for Global Environmental Conservation

Addressing Climate Change
Information Disclosure Based on TCFD
Recommendations
On March 5, 2021, Nissin Electric announced its intention to follow
the recommendations of the Task Force on Climate-related
Financial Disclosures (TCFD).* We disclose information relating toclimate change in line with the requirements of the TCFD
recommendations (governance, strategy, risk management, metrics
and targets).

gas emissions, which exert a significant impact on climatechange. Regarding such initiatives as the development ofenvironmentally friendly products and in-house energy-saving
measures, we hold regular meetings of the SDGs Committee, which
is chaired by the president, to positively promote them.
Upon deciding the Nissin Electric Group’s materiality (important
issues) relating to sustainability, including climate change, the SDGs
Committee oversees initiatives and reports on the state of progressand related matters to the Board of Directors and Board ofManaging Directors. These two boards deliberate on the reports
and exercise appropriate supervision by giving instructions andguidance to the committee.
Note: Refer to the Corporate Governance Report on our website regarding
corporate governance structure.

System diagram* The Task Force on Climate-related Financial Disclosures (TCFD): A special teamestablished by the Financial Stability Board (FSB). Viewing climate change asboth a risk and an opportunity, the TCFD recommends disclosing the impact ofrising temperatures due to greenhouse gases on corporate finance and calls on
government organizations, financial institutions, and companies for their agreement.

Board ofManaging Directors

Board of Directors

SDGs Committee

Governance
The Nissin Electric Group considers addressing climate change
to be a most important issue. Our aim is to reduce greenhouse

Key drivers

Overview of specific key climate-change risks

Transition risks
Physicalrisks

Policy and legal
regulations

Strengthening of regulations on greenhousegas emissions and taxation of energy
consumption, such as carbon taxes

・Decline in sales of products using greenhouse gases and solution products
・Increase of business cost burden

Technology

Progress of technical innovation relating toenvironmentally friendly products

・Decline in competitiveness and loss of opportunities due to delayed development ofenvironmentally friendly products
・Increase of R&D investment costs

Market assessment

Stance on initiatives to address climatechange and rising resource prices

・Lower evaluation of investors and market
・Increased product cost due to rising price of materials and difficulty of obtaining them

Acute

Increasing severity of typhoons and floods

・Suspended operations or reduced production due to disaster-hit plants
・Suspended operations or reduced production due to disaster-hit supply chain or
difficulty of procuring materials

Opportunity factors

Overview of opportunities

Increased number of companies boosting
their renewable-energy ratios

Rise in demand for related products and services due to increased number ofcompanies introducing renewable energy

Transition to a decentralized society

Rise in demand for related products and services due to expanding smart-grid market

Expansion of electrification in industrial
and automotive fields

Expansion of related business due to electrification

Increase of abnormal weather conditions

Increased demand for BCP-related equipment and services

Increased demand for higher efficiency of
products due to promotion of
decarbonization

Increased demand for highly efficient products

Energy sources

Opportunities

33

Products andservicesNISSIN REPORT 2022

E Environmental S Social

G Governance

Strategy/risk management
We have integrated our response (policy) to climate-change risks
and opportunities into the growth strategy of our medium-tolong-term business plan “VISION2025,” and we will strengthen our
regime to actively minimize risks and maximize opportunities on aGroup-wide basis.

Assessment of the impact of future climate-change risks
and opportunities
At present, in light of perceived risks, we are studying how various
climate-change risks (transition risks, physical risks) could have an
impact on our businesses and qualitatively assessing how importantrisks and opportunities could have a significant financial impact on
our businesses.
This year, which marks the first fiscal year of VISION2025, we
identified the risks and opportunities that were qualitatively assessed
as having a significant financial impact in the Power Supply andEnvironment System Business, which is the Nissin Electric Group’s
core business. These potential risks and opportunities are shownin the table on page 33.

Metrics & targets
CO2 emissions and reduction ratio across the entire
supply chain (Nissin Electric Group in Japan +Overseas group companies)
Scope 1 + 2

Scope 3(Thousand t-CO2)

4,000
3,500

0

Scope 1 + 2 reduction ratio

Scope 3 reduction ratio

4.3

(%)

9.1

3,000

22.7

2,500
2,000
1,500

1,810
1,713

1,000
500
0

13.4

35.1
1,199
1,111

97

88

2018

2019

1,408
1,324
84
2020

18.8

0

30

35
1,484 1,262
1,392 1,199
93 632021 2030 Target

10
20
30
40
50
60
70
80
90
100
(FY)

Calculation method: Based on the “Greenhouse Gas Emissions Accounting and Reporting
Manual (Ver. 4.8)” (2022) by the Japanese Ministry of the Environment andMinistry of Economy, Trade and Industry(except the emission factors, which are mentioned below)
Basic policy on the emission factors:
The latest available emission factors at the time of the calculation are used for purchased electricity
while fixed emission factors are used for other than purchased electricity.
CO2 emission factor for purchased electricity:[In Japan] Adjusted emission factor of each electric power supplier published in “Disclosure of
Basic emission factor, adjusted emission factor, etc. of each electric power supplier for
fiscal 2020” (2022) by the Japanese Ministry of the Environment[Overseas] Emission factor in each country for 2019 mentioned in “IEA Emission Factors 2021” (2021)
CO2 emission factor for other than purchased electricity:[Both in Japan and overseas] Emission factor in “Greenhouse Gas Emission Accounting and Reporting
Manual (Ver. 4.8)” (2022) by the Japanese Ministry of the Environment andMinistry of Economy, Trade and Industry
Scope of data:
For FY2021 Nissin Electric Co., Ltd. and the nine Japanese group companies of NHV Corporation,
Nissin Business Promote Co., Ltd., Nissin Denki Shouji Co., Ltd., Nissin Systems Co., Ltd.,
Nissin Ion Equipment Co., Ltd., Nippon ITF Inc., Nissin Pulse Electronics Co., Ltd.,
Nissin Heartful Friend Co., Ltd., Auland Co., Ltd.,and the 12 overseas group companies of Nissin Electric (Thailand) Co., Ltd., NHV America Inc.,
Nissin Allis Electric Co., Ltd., Nissin Electric (Wuxi) Co., Ltd., Beijing Hongda Nissin Electric Co., Ltd.,
Nissin Electric Wuxi Co., Ltd., Nissin Electric Vietnam Co., Ltd.,
Nissin Advanced Coating (Shenyang) Co., Ltd., Nissin Advanced Coating (Tianjin) Co., Ltd.,
Nissin Advanced Coating Indo Co., Private Ltd., NHV Accelerator Technologies Shanghai,
Nissin Electric Myanmar Co., Ltd. (until FY2020 including Nissin Ion Hightech (Yangzhou) Co., Ltd.)* Science Based Targets initiative: An international initiative that recommends
medium- and long-term targets for greenhouse gas reductions based on
scientific evidence.

Major initiatives for achieving our targets
We implement initiatives in various fields by developing
environmentally friendly products and building production setupsthat take the environment into consideration.

Development and increased sale of environmentallyfriendly products❶ Smart Power Supply Systems (SPSS)
Using electrical equipment and grid connection technology,
we will build energy-saving systems at customer plants. We
will realize both energy saving and stable supplies bycombining such equipment as gas insulated switchgear(GIS, one of our key products) and transformers with
distributed energy resources and energy management
systems.
❷ Transformers
We will expand sales of a super high efficiency transformer,
which loses less electricity than conventional transformers.
❸ Gas insulated switchgears (GISs)
Aiming to realize even greater compactness, which is one of ourstrengths, we will develop GIS toward reducing the use of SF6 gas.
❹ Ion implanters
We will endeavor to realize ion implanters that contribute to
the high-performance and reduced energy consumption ofsemiconductor devices and flat panel displays (FPDs).
❺ Electron beam processing systems (EPSs)
We will advance product development in consideration ofcustomer needs in the face of demands to cut emissions of SF6
gas and supply environmentally friendly EPSs to the market.

Initiatives to reduce greenhouse gas emissions❶ Introduction of corporate internal carbon pricing (ICP)
We will encourage energy saving in production activities andpromote capital investment contributing to the reduction of CO2
emissions by setting corporate internal carbon pricing for capital
investment aimed at reducing greenhouse gas emissions andvirtually converting CO2 emissions to cost.
❷ Energy-saving diagnosis of supply chain
We will conduct energy-saving diagnosis of the supply chain,propose specific measures toward saving energy and reducing
greenhouse gas emissions, and promote CO2 reduction activities.

The Nissin Electric Group has set the long-term targets of a 35%
reduction (Scope 1 + 2) and a 30% reduction (Scope 3) ingreenhouse gas emissions by fiscal 2030 compared with fiscal
2018, and has been certified by an international environmentalorganization, the Science Based Targets initiative (SBTi)* as a target
based on scientific evidence.

NISSIN REPORT 2022

34

Initiatives for Global Environmental Conservation

Strengthening of Environmental
Management
Promotion of Group Environmental Activities
Nissin Electric Group’s environmental activities are overseen by the
Secretariat in the Head Office (Environmental Management Division,
Safety and Environment Department). The president serves as chairof the Environmental Committee, which endeavors to strengthen
our environmental management structure in consideration ofmanagement strategy.
In April 2021, we established the Energy Conservation Promotion
Office within the Safety and Environment Department to promote
the group’s management system, including measures to reduce theenvironmental impacts, such as energy saving, and awareness-raising
activities through educational and training programs.
In addition, we established the Nissin Electric Group
Environmental Promotion Committee under the Environmental
Committee to strengthen environmental management
capabilities in the group as a whole and promote environmental
improvement activities.

Prevention of Global Warming
Reduction of Greenhouse Gas Emissions
Calculating supply chain emissions
The Nissin Electric Group calculates its greenhouse gas
emissions in the group’s supply chain in Japan and abroad using
the Basic Guidelines on Calculating Greenhouse Gas Emissions
in the Supply Chain Ver. 2.4 issued by METI and the Ministry of
the Environment.

CO2 emission results for the entire supply chain
Total: 1,484,000 t-CO2 (Fiscal 2021, Nissin Electric Groupin Japan + Overseas group companies)
Direct emissions (Scope 1)

4.1%

Energy-derived
indirect emissions (Scope 2)

2.2%

Other (Scope 3)

2.5%

Environmental Awareness Raising ThroughGlobal Group Competition GLOBAL
To help our employees properly understand the importance ofenvironmental activities and make improvements, we hold acompetition to present and share cases of improvements madein departments and group companies.
In fiscal 2021, the 1st Global Safety, Environment, and Quality
Competition, with the environmental section newly added, washeld online to exchange information with the aim of strengthening
initiatives to make environmental improvements. Going forward,
the group will strive to further strengthen and disseminate
environmental initiatives on a global scale.

Use of products sold(Scope 3)

81.2%

Products and services
purchased (Scope 3)

10.0%

Scope of data: Nissin Electric Co., Ltd. and the nine Japanese group companies of NHV Corporation,
Nissin Business Promote Co., Ltd., Nissin Denki Shouji Co., Ltd., Nissin Systems Co., Ltd.,
Nissin Ion Equipment Co., Ltd., Nippon ITF Inc., Nissin Pulse Electronics Co., Ltd.,
Nissin Heartful Friend Co., Ltd., Auland Co., Ltd.,and the 12 overseas group companies of Nissin Electric (Thailand) Co., Ltd., NHV America Inc.,
Nissin Allis Electric Co., Ltd., Nissin Electric (Wuxi) Co., Ltd., Beijing Hongda Nissin Electric Co., Ltd.,
Nissin Electric Wuxi Co., Ltd., Nissin Electric Vietnam Co., Ltd.,
Nissin Advanced Coating (Shenyang) Co., Ltd., Nissin Advanced Coating (Tianjin) Co., Ltd.,
Nissin Advanced Coating Indo Co., Private Ltd., NHV Accelerator Technologies Shanghai,
Nissin Electric Myanmar Co., Ltd.

Energy-saving activities in offices

The 1st Global Safety, Environment, and Quality Competition, Head Office

35

NISSIN REPORT 2022

We promote the following energy-saving activities:● Switching to LED lighting● Turning off lights during lunch breaks● Promoting Eco Work Day (leaving work on time and switchinglights off at workplaces)● Energy-saving operation of peripheral equipment● Implementation of “Cool Biz” and “Warm Biz” campaigns
and others

E Environmental S Social

Initiatives aiming for zero CO2 emissions

Office energy consumption and consumption per unit
(Nissin Electric Group in Japan）
Total amount

Consumption per unit
Consumption per unit (KL/m2)

Total amount (KL)0.00300

400.0

0.00245
300.0

200.0

0.00250

0.002230.00195189.5

0.00189

G GovernanceAt the Nissin Academy Training Center and Nissin Club Saganoso,
we are endeavoring to achieve zero emissions, which means zeroCO2 emissions from energy sources.
In addition to installing environmentally friendly equipment,such as high-efficiency air-conditioning systems in buildings, wereduce the amount of electricity used by applying our advanced
technologies, including the effective use of surplus power fromphotovoltaic systems by means of the utilization of direct-current
distribution and power wheeling technologies.

0.00200

0.00150

172.7

146.3
109.5

0.00100

100.0
0.00050

0

2018

2019

2020

2021

0
(FY)

Scope of data: Nissin Electric Co., Ltd., and the four group companies of NHV Corporation,
Nissin Business Promote Co., Ltd., Nissin Denki Shouji Co., Ltd., and Nissin Systems Co., Ltd.

Photovoltaic system installed at the Nissin Academy Training Center

Activities to reduce CO2 emission from transportation
Our transport group attempts to reduce CO2 emissions byimplementing eco-driving, including the elimination of idling whenparked, the reduction of transport volumes, and the utilization oftrucks with low CO2 multipliers, as well as improving load efficiency
to reduce the number of trucks dispatched.

CO2 emissions from transportation and consumption
per unit (Nissin Electric Group in Japan)
Transport volume

Consumption per unit

Transport volume (t-km)

14,0000.142

Consumption per unit (thousand t-CO2/t-km)

0.150

0.134

12,000

0.129

0.136
0.120

9,432

10,000

8,000

9,084

8,658

7,374

6,000

0.090

0.060

4,000
0.030
2,000

0

2018

2019

2020

2021

Nighttime lighting using surplus power from a photovoltaic system■ External evaluations
Certified as an excellent business operator under
Kyoto City’s Business Operator Emission Reduction
Plan System
Under the Business Operator Emission Reduction Plan System,
based on the Kyoto City Ordinance on Global WarmingCountermeasures, which aims to voluntarily reduce emissions byspecified businesses that emit greenhouse gases of a certain
scale, Nissin Electric has been recognized as an excellent
business operator in three consecutive periods—the period of thefirst plan (FY2011–13), the second plan (FY2014–16), and the thirdplan (FY2017–19).

0(FY)

Scope of data: Nissin Electric Co., Ltd.

NISSIN REPORT 2022

36

Initiatives for Global Environmental Conservation

Expanding the Popularity ofEnvironmentally Friendly Products
Expanding the Popularity of Environmentally
Friendly Products“Eco Mind” criteria and product registration
To boost the development of environmentally friendly products,
we set certain criteria for “Eco Mind” products, for which productassessment, including environmental evaluation, is conducted at
the development and design stages. We are also moving toestablish a product registration system for these purposes.

Environmental aspects of evaluation① Saving on resources② Environmental impact assessment (production and usage)③ Assessment of chemical substances contained in products④ Reduction of environmental impacts at time of waste disposal

Products certified with our own environmental label
We have our own “eco-product” certification for products that
conform to one or more criteria as environmentally friendly products,
such as emitting 20% fewer greenhouse gases compare with fiscal
2000. We also have “super eco-product” certification for productsthat reduce emissions by 50% or more. Both certifications are
identified by the Type II environmental label. We have also issued
a new environmental label which evaluation criteria as fiscal 2018base year and will contribute to reduce the environmental impactsof our products by further popularizing environmental label products.

Products with environmental labels
Certificationdate

eco-products (14 products)

May 2007

Voltage dip compensator for low voltage UNISAFE

June 2007

Digital multi-protection relay(DU1-2T11–2T31 DC110V 8.7A 50/60Hz)

August 2009

I-type control center (200/400V, 1250A or lower)

May 2013

Power conditioner for photovoltaic system(SPM100-CS1A, SPM100-CS2A, SPM250-CS1)

August 2013

Compact switchgear (6.6kV, 1200A or lower)
3φ gas insulated voltage transformer (SVTR-12C)

September 2014

Ultra-compact gas insulated switchgear XAE7 (72/84kV 1200A)
Compact gas insulated switchgear XAE2G (24kV 630A)

September 2016

D1U type harmonic relay (DC110V)

August 2018

SJ series automatic controller for phase-modifying equipment

October 2018

NS type T87 percentage differential relay (NS-3T25)

September 2020

SJ series transfer trip equipment (DC110V)

March 2022
September 2013super eco-products (12 products)

37

Applicable product

SJ series relay equipment for double busbar protection
J-series relay for parallel capacitors protection

Emission Reductions
Reducing Waste and Recycling
To reduce the total waste volume, Nissin Electric is developing
small group activities centered on our manufacturing businessdivisions to strengthen our efforts to improve the yield of steel
sheets and insulating paper, reduce the usage of wood packing
materials, and apply returnable packaging materials. In addition, weare promoting the thorough separation of industrial waste andvaluable resources, and recycling of incineration ash in order toimprove our waste recycling ratio.

Waste volumes and consumption per unit (Nissin ElectricGroup in Japan + Overseas group companies)
Total amount

Consumption per unit

Total amount (t)Consumption per unit (kg/million yen)

8,000

60.0

7,000
6,000
5,000

41.9
4,287

45.5
4,802

47.5
4,451

4,000
3,000

0

2018

2019

2020

Capacitor voltage transformer for protected areas (PDB-20F)
Capacitor voltage transformer for protected areas (PDB-25F)
D1U type automatic voltage regulating relay (#90) (D1UVR-41)

May 2020

Power conditioner for photovoltaic system(SPM250-CS1B, SPM500-CS1B, SPM660-CS1B, SPCS500-1,
SPCS660-1, SPCS750-1, SPCS1000-1)

February 2021

1φ ECO gas insulated voltage transformer (GVR-14A)

NISSIN REPORT 2022

2021

0
(FY)

At the Nissin Academy Training Center and Nissin Club Saganoso,
we implement the 3Rs (reduce, reuse, and recycle) to cut foodloss and reduce the volume of waste with the aim of achieving zerogarbage (100% resource recycling). In addition to reducing
consumables, going paperless, and providing garbage separation
stations and garbage separation boxes, we are stepping up efforts
to reduce food loss by changing the menu and implementing a
30/10 campaign. We are also trying to reduce the volume ofleftover food by installing raw garbage disposal units.

Capacitor voltage transformer for protected areas (PDB-17F)

SJ series digital automatic operation system

20.0

Initiatives to eliminate garbage (100% resource recycling)

Capacitor voltage transformer for protected areas (PDB-14F)

J-series SC protection relay

30.0

Scope of data: For FY2021 Nissin Electric Co., Ltd. and the nine Japanese group companies of
NHV Corporation, Nissin Business Promote Co., Ltd., Nissin Denki Shouji Co., Ltd.,
Nissin Systems Co., Ltd., Nissin Ion Equipment Co., Ltd., Nippon ITF Inc.,
Nissin Pulse Electronics Co., Ltd., Nissin Heartful Friend Co., Ltd., Auland Co., Ltd.,and the 12 overseas group companies of Nissin Electric (Thailand) Co., Ltd., NHV America Inc.,
Nissin Allis Electric Co., Ltd., Nissin Electric (Wuxi) Co., Ltd., Beijing Hongda Nissin Electric Co., Ltd.,
Nissin Electric Wuxi Co., Ltd., Nissin Electric Vietnam Co., Ltd.,
Nissin Advanced Coating (Shenyang) Co., Ltd., Nissin Advanced Coating (Tianjin) Co., Ltd.,
Nissin Advanced Coating Indo Co., Private Ltd., NHV Accelerator Technologies Shanghai,
Nissin Electric Myanmar Co., Ltd. (until FY2020 including Nissin Ion Hightech (Yangzhou) Co., Ltd.)

Capacitor voltage transformer for unprotected areas (PDL-20F)

March 2020

40.0

10.0

1,000

D1U type spot network relay (DC110V)

February 2016

24.3
2,433

2,000

1φ gas insulated voltage transformer (SVR-14A)

September 2014

50.0

Raw garbage disposal unit installed(left: immediately after garbage added; right: 24 hours later)

E Environmental S Social■ External evaluations
Certified as a long-standing excellent enterprise by
Kyoto City’s “Business Recognized for Excellence inWaste Reduction & 3Rs”

G GovernanceConservation of Biodiversity
Activities to Preserve the Unique Ecosystem of
Kyoto on the Premises of the Head Office

We have received great recognition of our efforts in areas such as
the data management of waste volume using barcode labels andthe creation of learning materials on waste classification andsorting methods. Our Head Office & Works has been certified asa long-standing excellent enterprise by Kyoto City’s “Business
Recognized for Excellence in Waste Reduction & 3Rs.”

Awarded “Business Recognized for Excellence inIndustrial Waste Disposal & 3Rs” certificate for the third
consecutive year in Kyoto City
Our Head Office & Works was certified and commended by Kyoto
City as a “Business Recognized for Excellence in Industrial Waste
Disposal & 3Rs” for the third consecutive year as a business that
promotes self-checks and improvements (industrial waste checksystem) for the 3Rs of industrial waste and their proper disposal.

Nissin Electric certified by Kyoto City’s “Kyoto Biodiversity andCulture Joint Restoration Project”*1 in 2014 and in 2018, we
are working to develop green spaces that take biodiversity
into consideration.
In addition to raising futabaaoi (Japanese wild ginger), which
was transplanted from Kamo-wake-ikazuchi Shrine (Kamigamo
Shrine), and then returning it to the shrine in a dedication ceremony,
we have been growing plants associated with the culture of Kyoto,
such as hiougi (blackberry lily) and fujibakama (boneset), andendangered species on the premises of our Head Office & Works.

Prevention of Soil and Water Pollution
Currently, there are a total of three groundwater inspection wells
at the Head Office & Works and Maebashi Works for which wehave established a voluntary inspection system. We are also
independently inspecting the pH and oil content of factory
wastewater, and the inspection results for fiscal 2021 were within
the standards of the Sewerage Act. We report these results togovernment agencies each time.

Management of Chemical Substances
We are actively working to strengthen management of chemical
substances in products based on our “BASIC GUIDELINES FOR
GREEN PROCUREMENT.” Additionally, we carefully manage andreport on chemical substances based on the “Act on Promotion ofManagement of Chemical Substances,”* a framework that identifies
the sources and emissions of hazardous chemical substances,
the amount of movement as waste, etc., and aggregates andpublishes them.
* Act on Promotion of Management of Chemical Substances: Act on
Confirmation, etc. of Release Amounts of Specific Chemical Substances in theEnvironment and Promotion of Improvements to the Management Thereof.

VOC emissions and consumption per unit (Nissin ElectricGroup in Japan + Overseas group companies)
Total amount

Consumption per unit

Total amount (kg)1.57
200,000

150,000

Consumption per unit (kg/million yen)

1.90

250,000

200,703

160,516

2.00
1.80

1.38
129,312

100,000

1.20
120,607

1.60

1.20
1.00
0.80

0.40
0.20

0

2018

2019

2020

Scope of data: The same as “Waste volumes and consumption per unit”

2021

Fujibakama (boneset)

In addition, the green space at the Nissin Academy Training
Center has been developed on the concept of “biodiversity +rain garden”*2 with the “Basic Plan for Green of Kyoto City.”
We are expanding thebiodiversity network andobserving the growth of the rare
plants in the “waterscape” inwhich rainwater is stored andrecycled, arranging plants thatmatch the environment there
and transplanting one whichhave grown at the Head
Office & Works.
In order to implement thesekinds of conservation activities
at the Maebashi Works andother sites, we have launchedinvestigation of endemic species. Waterscape at the Nissin Academy
Training Center*1 Kyoto Biodiversity and Culture Joint Restoration Project: A project of Kyoto
City that promotes efforts to pass on the natural environment and traditional
culture unique to Kyoto to future generations by certifying initiatives to preserveand regenerate the life that have supported festivals and culture in Kyoto, andproviding technical support by dispatching experts as required.
*2 Rain garden: A garden with a function to prevent rapid runoff to public drainage
by temporarily storing rainwater on the soil surface and slowly allowing it to soak
into the ground. It can help control drainage overflow due to short and intense
periods of rainfall.

1.40

0.60
50,000Hiougi (blackberry lily)

0(FY)■ External evaluations
Received the President Award for Encouragement by
Japan Greenery Research and Development Center at the“National Award for Greenery Factory”
Nissin Electric received the President Award for Encouragement
by Japan Greenery Research and Development Center at the“Commendation for Outstanding Green Space Environment
Factory 2020 (National Award for Greenery Factory).”

NISSIN REPORT 2022

38

Customer TrustEngaging in activities from the perspective of the customer to make sure that we are always helpful toand trusted by customers.

Management based on quality manuals

Quality Improvement Activities
Quality policy
Understanding the importance of satisfying legal andregulatory requirements as well as customer
requirements, we work to provide customers and otherclosely related stakeholders with products, installation
work and ancillary services they can trust in a highly
technical and honest manner. At the same time, we
strive to make continual improvements to our quality
management system and ensure it functions effectively
in an effort to further enhance customer satisfaction.

Quality Assurance System
At the Nissin Electric Group, the Quality Assurance Administration
Department, which has the three functions of “company-wide
quality control,” “planning, promotion, awareness-raising of quality
improvement activities” and “response to customer inquiries andhandling trouble reports,” has a company-wide role to continuously
improve the quality management system. We’re working to ensure
all of our employees and business partners are working towards
quality improvements.

Quality Control
Status of ISO 9001 certification among Nissin ElectricGroup Companies
RegionCompany nameNissin ElectricCo., Ltd.

Current
editionCertification

Headquarters

1996. 7 2015 edition 2018. 3

Maebashi Works

1994. 1 2015 edition 2018. 3* Management review: A management control activity in which companies review their
managerial systems, examining both positives and negatives. Reviews are performed throughISO-certified methods, among others.

Partner-linked quality controls

We consider our suppliers to be our partners. This means their
quality control is part of our own quality control. We are, therefore,
aiming to further improve the quality of outsourced and purchased
products through appropriate supply chain management. By
deepening communication through technical exchanges andreflecting the feedback received into manufacturing, we build a
relationship of trust that goes one step beyond a business
relationship, improve quality while solving common problems, andincrease customer satisfaction.

Quality Control Training

GLOBAL

Alongside providing training on the importance of quality to new
employees and overseas group companies, we also conduct
training, such as introduction and understanding of the standards,
learning basic concepts and other important issues regarding
quality management systems relating to ISO9001. We also provide
training for assistant internal auditors. Our aim is to enrich theknowledge needed for quality improvement activities and to acquire
the international standards necessary for efficiently implementing
a PDCA cycle throughout our daily operations.
We also invite lecturers to
conduct training on the study offailures. This action maintains
and improves awareness ofsafety and quality among our
employees and helps prevent
recurrence of the malfunction byhaving them think logically about
Training at Nissin Electric (Thailand) Co., Ltd.
mistakes in their own divisions.

NHV Corporation

1995. 4 2015 edition 2017. 8

Nissin Systems Co., Ltd.

2021. 6 2015 edition 2021. 6

Nissin Ion Equipment Co., Ltd.

1996. 11 2015 edition 2018. 1

Nippon ITF Inc.

2004. 1 2015 edition 2017. 8

Quality Improvement Initiatives

Nissin Pulse Electronics Co., Ltd.

2001. 12 2015 edition 2017. 10

Design quality inspections

Auland Co., Ltd.

1999. 5 2015 edition 2017. 5

Beijing Hongda Nissin ElectricCo., Ltd.

2009. 9 2015 edition 2017. 10

Nissin Electric (Wuxi) Co., Ltd.

2005. 4 2015 edition 2016. 9

Nissin Electric Wuxi Co., Ltd.

2005. 7 2015 edition 2017. 6

NHV Accelerator Technologies
Shanghai2013. 2 2015 edition 2018. 9

Nissin Advanced Coating(Shenyang) Co., Ltd.

2016. 3 2015 edition 2018. 1

TaiwanNissin Allis Electric Co., Ltd.

1996. 2 2015 edition 2017. 6

ThailandNissin Electric (Thailand) Co., Ltd.

1998. 12 2015 edition 2018. 9

VietnamNissin Electric Vietnam Co., Ltd.

2007. 12 2015 edition 2017. 2

Japan

China

39

First
registration

The Nissin Electric Group has consolidated quality manuals at our
Head Office & Works and Maebashi Works, taking advantage ofgood practices contained in both to strengthen management
reviews* and directions from top management. This action assists
in creating synergy between our quality assurance and customer
satisfaction improvement efforts.

NISSIN REPORT 2022

Ensuring product quality requires deciding, adhering and checking
of basic standards and procedures under all circumstances. The
Nissin Electric Group conducts quality inspections of eachdivision’s design departments to assess the actual situation on the
ground. We work with employees to improve quality by checking
compliance with quality standards, highlighting issues, andproposing improvements.

Adoption of degree of quality assurance assessment
To increase quality assurance standards at the Nissin ElectricGroup, we have adopted a degree of quality assurance concept
to objectively assess quality risks. The degree of quality assurance
is an indicator to assess the extent to which malfunctions occur
and issues are being prevented. It does this by using four different
ranks to assign six levels of value by combining those ranks.

E Environmental S Social

By comparing and assessing the degree of quality assurance
before and after taking measures to prevent malfunctions, we areable to draft failsafe countermeasures for malfunctions using thissystem, as it allows objective measurement of thesecountermeasures and their suitability.

Enactment of Regulations to Prevent Quality Data
Falsification
Given the revelations of quality data falsification seen at many ofthe leading corporations in Japan, the Nissin Electric Group
implemented a survey to serve as an overall inspection of screening
operations in fiscal 2017 and again in fiscal 2021. We are confirmingthat no events of a nature which would violates compliance matters
are present in all the items for inspection, inspection content, andoutcomes, as well as in judgments on quality.
We have enacted the “Regulations to Prevent Quality Data
Falsification,” an initiative which is intended to prevent quality data
falsification from occurring at the Nissin Electric Group, as well as
prevent such data falsification in advance and continuously
guarantee quality compliance. The status of inspections is regularly
checked as part of internal audits.

Improving awareness of quality throughglobal- and group-based competitions GLOBALThe Nissin Electric Group has held Quality Competitions since
fiscal 2012 to ensure that each and every employee fully
understands the importance of quality, as well as to facilitate
improvements. These competitions enable us to share examplesof quality improvement in each department and group company
and exchange information to raise and improve awareness ofquality throughout the group globally.
Starting in fiscal 2018, we have held Safety and Quality
Competitions, with competitions also held in the Chinese-speaking
and ASEAN regions from fiscal 2019. Since fiscal 2020,
competitions for the entire Nissin Electric Group, including overseas
group companies, have been held online.
In fiscal 2021, the 2nd Chinese-speaking Region Safety andQuality Competition in April, and the 2nd ASEAN Region Safety,
Environment, and Quality Competition in September were bothheld online. These events hosted reports on the status of safety,
environmental, and quality initiatives at the Nissin Electric Group,and case study presentations on quality improvement activities atrespective overseas group companies. There were alsopresentations on case studies of activities at the Nissin ElectricGroup to improve quality by means of tie-ups with partnercompanies. In addition, there were reports on analyses andcountermeasures for malfunctions, as well as those on quality
control training. In November, two teams comprised of overseas
group companies which had been awarded prizes of excellenceat the competitions for the Chinese-speaking and ASEAN regions
took part in the
1st Global Safety,
Environment,
and Quality
Competition,
which wasstreamed online.

G Governance

Promotion of quality control
by the ASEAN Quality Commission GLOBAL
In fiscal 2020, the Nissin Electric Group launched the ASEAN
Quality Commission to promote quality management at ouroverseas group companies in the ASEAN region. We support local
quality improvement activities and the development of managers
and leaders throughout Nissin Electric (Thailand) Co., Ltd. andNissin Electric Vietnam Co., Ltd. by holding monthly online
commission meetings and providing training on quality control.
We are also working to improve our quality management
system by coaching managers and leaders to assess the status ofdefects that occur in each department, enabling them to investigate
the causes and formulate measures to prevent recurrence.

The Creation of a System for Customer Feedback
for Greater Improvements
The CS Center collects and analyzes customer feedback,providing swift responses
To gain even more trust from our customers, the Nissin ElectricGroup has established a CS Center.* The Center collects andanalyzes customer feedback in a centralized manner, then forwards
it to the relevant division, enabling improvements to our products
and services and enhanced customer satisfaction.
We have also established an emergency contact system thatis available 24 hours a day, 365 days a year. The system provides
swift responses to customer problems such as equipment
troubles. It works with specialized departments to investigate andrestore the equipment on-site while incorporating
COVID-19 countermeasures.
* CS Center: The department responsible for initial responses after receiving trouble reports orinquiries from customers.

Prompt responses to questions and requests provided
from customer surveys
We have conducted customer surveys at on-site inspections prior
to product shipment, considering them to be a valuable opportunity
to hear directly from our customers. We are also constructing asystem to respond to questions and requests promptly. Thisaction was achieved by filling questions and requests in a
dedicated form, along with a deadline for a reply, which is fed
back to each department.

The 2nd ASEAN Region Safety, Environment, andQuality Competition

NISSIN REPORT 2022

40

E Environmental S Social

G Governance

Customer Trust

Promotion of Life Cycle Engineering
ICT-Based Customer Support Throughout
the Product Life Cycle
The Nissin Electric Group uses life cycle engineering to support
the products we deliver to our customers throughout their life cycle,
from on-site installation work to on-site testing, maintenance,
facility assessments, and renewal.
By integrating the related Life Cycle Engineering Business into
Power Supply and Environment System Business and Beam andPlasma Business, in a business segment restructuring for fiscal
2021, we standardized management of customer information andinformation on engineering and maintenance and established oursystem to uniformly implement processes, from design andplanning through to operations and maintenance.
Our basic policy is defined by the phrases, “safety and quality
first,” “trust and peace of mind from the customers,” “good advisor
for the customers,” and “grow and develop to meet customer
needs.” We are using the policy to strengthen cooperative
frameworks between on-site engineers, in-house engineers, andon-site workers through the use of ICT tools (smart glasses, dedicatedblogs, business chat, etc.). We are also working to improve work
efficiency. Related actions include automation of inspections byautomating protection relay test and maintenance works anddegradation assessment and remote maintenance through ourunique assessment equipment and equipment assessment
system that utilizes IoT.
The CS college at the Nissin Academy, the Nissin ElectricGroup’s education and training system, provides systematic andplanned education and development according to technical skill
and rank. The academy assists in the swift development of on-siteengineers and managers who possess a wide range of knowledge
and abilities, as well as comprehensive capabilities such as
customer responsiveness and problem-solving skills.
We will continue to challenge ourselves to promote life cycle
engineering that meets the needs of our customers.

applications of electron beams, starting from foundational
examples, at the regular online technical seminars, theydisseminate technical information in a blog format as “Useful
information on electron beam processing systems” on the NHV
Corporation website, based on customer requests at seminars.
We will continue to support the stable and sustained
production and research activities of our customers throughregular inspections.

Sharing Technology
Customer Training for Substation Equipment
MaintenanceNissin Electric conducts customer training to support thedevelopment of electrical engineers involved in maintaining
substation equipment.
This training has been conducted at the Practical Training
Building at the Nissin Academy Training Center. Working withnumerous actual products and equipment has resulted in morepractical and fulfilling training. The training uses our veteranengineers with a wealth of experience as instructors and focuseson practical aspects that cannot be experienced in day-to-day work.
To prevent the spread of COVID-19, placing priority on ourcustomers’ safety, the training will ensure our customers areprovided a safe training environment through thorough infection
control measures, including avoiding the “Three Cs” (closed
spaces, crowded places, and close-contact settings).

Details of customer training (sample itinerary)
Substation Equipment Maintenance Course (2.5 Days)
Day 1● Basic theory on substation equipment (classroom)● Structure of main equipment and directions on use (on-site)

Inspecting Electron Beam Processing Systems That
Support Customer Production and Research GLOBALElectron beam processing systems manufactured by NHVCorporation allow improvements to specific features of materials
and addition of new functions by exposure to electron beams.
Over 400 systems have been delivered to 31 countries around theworld, with these systems deployed by customers in production
and research in automobile-related fields, healthcare, agriculture,and food product fields, among a wide variety of other fields. The
majority of these systems operate around the clock, which meansthat regular inspections are vital for their stable performance.
NHV Corporation cooperates with its subsidiaries in the UnitedStates and China in conjunction with customers’ production andresearch activities to send employees to 31 countries around theworld to conduct inspections. They also supply information andoffer proposals on spare parts for aging critical components inequipment and the early recovery of equipment in the event
trouble occurs. It is also holds regular online technical seminars
for customers who are currently using electron beam processing
systems or considering using or introducing these infrastructures.
In addition to explanations of case studies on the effects and

41

NISSIN REPORT 2022

● Safety work (classroom and on-site)

Day 2

Practical learning focusing on the basics and things to becareful of, and how to shut down and restore power using
an actual cubicle substation with 6,600 V applied.
● Case studies in electrical equipment accidents and proper
maintenance practices (classroom and on-site)
Practical learning using electrical equipment with signs of
insulation degradation focused on conducting an
investigation using a degradation assessment system,
experiencing abnormal heat caused by improper tighteningof the wiring terminal, and experiencing discoloredthermo labels.
● See equipment manufacturing process● Key points of electrical equipment maintenance work (on-site)

Day 3

Characteristic test of protection relays and practicalinspection of circuit breakers.
● Case studies in electrical equipment accidents and explanationof ways to investigate troubles (classroom and on-site)
Practical learning on the use of relays, experience with
unnecessary operations, and inspection methods for the
ground fault of the control power supply after a highvoltage ground fault.
● Technology sharing session

E Environmental S Social

G Governance

Shareholder Trust
Enhancing information disclosures to shareholders, engaging in constructive communication, striving to return
appropriate levels of profits, and enhancing sustained growth and corporate value over the mid to long term.

Timely, Appropriate and Transparent
Information Disclosures
Enhancing Information Disclosures
In accordance with the stipulations from the basic principle of“Ensuring Appropriate Information Disclosure and Transparency”
from Japan’s Corporate Governance Code, we disseminate
information, including ESG (environmental, social, and corporate
governance) information that is useful for fostering
understanding about Nissin Electric, as well as informationprescribed by laws and regulations, based on timely andappropriate information disclosure.

Disclosure Policy
1 Basic policy●

Nissin Electric take the Five Trusts, “Customer Trust,”“Shareholder Trust,” “Societal Trust,” “Partner Trust,” and“Employee Mutual Trust,” as the Principles of Activities. We
disclose information in a timely, accurate, and fair manner
to strengthen our relationship of trust with our stakeholders.
2 Timely and appropriate disclosure of●
critical information

When disclosing critical information,* the Nissin ElectricGroup complies with the Financial Instruments andExchange Act and other relevant laws and regulations, andthe “Rules on Timely Disclosure of Corporate Information
by Issuers of Listed Securities” (hereinafter “Timely Disclosure
Rules”) stipulated by the Tokyo Stock Exchange, where
the Company’s securities are listed and strives to disclose
information in a timely and appropriate manner.
* Critical information refers to corporate information that is required to bedisclosed under the Financial Instruments and Exchange Act and other related
laws and regulations, as well as corporate information that requires timely
disclosure as stipulated in the Timely Disclosure Rules.

3 Voluntary disclosure of information●

The Nissin Electric Group promotes the voluntary disclosureof corporate information, even information that does not fallunder the category of critical information, in order todeepen stakeholders’ understanding.

4 Fair disclosure of information●

Communication with Investors
For company presentations for investors, which were traditionallyintended to deepen understanding of Nissin Electric, we
suspended on-site company presentation for individual investors
in fiscal 2021 to avoid the Three Cs at venues, as a measure toprevent infections with COVID-19. We held earnings presentation
for institutional investors in an online format and explained
performance and outlook briefings for the entire Nissin ElectricGroup as well as those on our medium-to-long-term businessplan “VISION2025.” We also respond to questions frominvestors individually by holding briefings using online
conferencing systems.

Annual General Shareholders’ Meeting:
A Forum for Constructive Dialogue
Based on our Corporate Governance Guidelines, Nissin Electricrecognizes the annual general shareholders’ meeting as a forum
for constructive dialogue with shareholders.
It was decided to hold the annual general shareholders’meeting of June 2021, more than a week before the peak date forshareholders’ meeting, on June 18. Additionally, we issued early
notification on our website (posted May 25) and early mail outs
(mailed May 31) to shareholders to facilitate the exercise of theirvoting rights based on sufficient advance consideration of agenda,
while continuing to consolidate the infrastructure for exercise ofshareholder voting rights. This included the deployment ofelectronic voting platforms, smart voting (a simple method ofvoting using QR codes) and translating notifications of shareholders’meetings into English. From 2020, the venue for the annual
general shareholders’ meeting was changed to the Nissin
Academy Training Center and themeeting was held with temperaturechecks on entry to the meetingvenue in place, seating
arrangements to ensure social
distancing, and the installation ofacrylic sheets, as measures to
Annual general shareholders’meeting in June 2021
prevent COVID-19 infections.

Appropriate Profit Returns Based on Stable
Cash Dividend

In addition to complying with relevant laws and regulations
and the Timely Disclosure Rules, the Nissin Electric Group
strives to disclose information in a fair manner throughpress releases to the media and our website, etc.

The dividend is determined based on a comprehensive
examination of the future management environment, businessresults and forecasts, dividend payout ratio, and levels of retained
earnings, following our basic policy to maintain a stable dividend
and return appropriate levels of profit to shareholders.

5 Quiet periods●

Cash dividend per share (yen)To prevent financial information from being leaked and toensure fairness, the Nissin Electric Group designates acertain period of time prior to the announcement offinancial results as a quiet period. During this period, it
refrains from answering questions or making comments
regarding financial results.

Cash dividend
30

32

32

32

36

2017

2018

2019

2020

2021

40
30
20
10
0

(FY)

NISSIN REPORT 2022

42

Societal Trust
Taking part in a host of social contribution activities inside and outside of Japan to co-exist with local communities andhelp develop the next generation of engineers.

Nissin Electric Group’s
Social Contribution Activities
The Nissin Electric Group conducts activities in three focus areas
under its basic policy on social contribution activities.

Basic policy on social contribution activities

Holding of scholarship student gathering
The scholarship student gathering has been held by the Foundation
annually since fiscal 2016, as a forum to deepen and refine
exchanges between fellow scholarship students researching insimilar fields and working adults. In fiscal 2021, the gathering washeld online, and consisted of reports and Q&A sessions on thedetails of their research and outcomes over the year byscholarship students, as well as advice and encouragement for
their ongoing activities.

As a member of society, the Nissin Electric Group is
actively involved in social contribution activities with theaim of creating a better society.

Focus areas of initiatives
1 Support the development of engineers●
2 Preserve historical and cultural assets mainly in Kyoto●
3 Cooperate with local environmental conservation activities●

Fiscal 2021 scholarship student gathering

Holding of technical exchange meeting

Activities of the Nissin Electric Group Foundationfor Social Contribution
In commemoration of the 100th anniversary of our founding in
2017, we established the Nissin Electric Group Foundation forSocial Contribution (“the Foundation”) as a way of thanking Kyoto
that has allowed us to remain in business for so many years.
Through the Foundation, the Nissin Electric Group aims to operate
its business in a way that is more in-step with society.

For the 6th term scholarship students whose interactions to date
had all taken place online due to the COVID-19 pandemic, atechnical exchange meeting was held for those who wished to takepart in December 2021. This involved overview of the Foundationand the Nissin Electric Group, tours of factories and the Practical
Training Building at the Nissin Academy Training Center, as well as
meetings for scholarship students and employees.

Project details
1 Support the development of engineers●

Operation of a scholarship system for domestic and overseas students,
alongside initiatives for expanding the horizons of engineers

Tour of transformer factoryFoundation’s establishment

Cooperation with Kyoto STEAM Women’s
Support Seminar

2 Preserve historical and cultural assets mainly in Kyoto●
3 Cooperate with local environmental conservation activities●
4 Other activities in line with the purpose of the●

Support for the Developmentof Engineers
A Grant-based Scholarship Program forTechnical Graduate Students
The Foundation operates a grant-based scholarship program fortechnical graduate students pursuing two-year master’s
degree programs.
In fiscal 2021, the Foundation provided scholarship to 28
students conducting research relating to electricity, plasma
processing, information, and materials & mechanical systems.
As the number of students suffering from financial difficulties
due to COVID-19 is increasing, the Foundation will contribute to
the development of human resources who can support theindustries of the future through supporting outstanding
students who are ambitiously acquiring knowledge about
advanced technologies.

43

NISSIN REPORT 2022

Meetings for scholarship students
and employees

A donation under the Foundation was made to Kyoto STEAM*
Women’s Support Seminar, held in Kyoto Prefecture with the aimof deepening involvement and comprehension of STEAM field
faculty studies and works among female junior and senior highschool students and expanding the scope of career options.
Female engineer at Nissin
Electric took part in theseminar and offered advice in
response to questions fromjunior and senior high school
students and their guardians.
* STEAM: Science, Technology,
Engineering, Art, Mathematics

Advice in response to questions fromjunior and senior high school students

Conclusion of a Comprehensive Partnership andCollaboration Agreement with Kyoto Women’s University
To coincide with the opening at Kyoto Women’s University of theFaculty of Data Science (currently applying for approval) in the 2023
academic year (starting April 2023), Nissin Electric concluded acomprehensive partnership and collaboration agreement on

E Environmental S Social

education, research, and human resource development with thisuniversity in July 2021. Based on this agreement, the Nissin ElectricGroup will contribute to the development of the human resources
which will be needed in the future and the improvement and practicalimplementation of technologies by actively collaborating in learning
for the resolution of challenges, as well as by hosting internships.

Holding of On-site Science Classes for Elementary SchoolStudents and Cooperation with Events in Maizuru City
To help improve interest in the sciences among children, Nissin
Electric holds on-site science classes for elementary school students
and cooperates in environmental education and hands-on classes
conducted by local governments.
In fiscal 2021, science classrooms for rakugo storytelling on theenvironment “A closer look at sewers” and lecture “All about water
events” were held. At these events students had the chance to learn
in a fun way about the importance of water and the environment. In
addition, we set up an exhibition booth to generate electricity by
pedaling experience at the “Have Fun with SDGs Initiatives,” SDGs
promotion project hosted by Maizuru City, where booth attendees
were able to experience firsthand the difficulty of power generationand the importance of electricity.

On-site science classes forelementary school students

Generate electricity by
pedaling experience

Initiatives for Expanding the Horizons of Engineers
Assisting with online international competitions GLOBALThe Foundation continues to support the Global Enterprise
Challenge, an international
competition for businesses ideas
held by the Center for
Entrepreneurship Development,a non-profit organization, forhigh school and vocational
college students.
Top-prize winning team in the

G Governance

Preservation of Historical and Cultural
Assets Mainly in Kyoto
Cooperation with Kyoto Prefecture
The Foundation concluded a partnership agreement in fiscal 2018
for the protection and maintenance of cultural properties in the
Kyoto area, continuing to provide support through donations.
In fiscal 2021, these donations were used for ongoing projects
to repair and maintain the former
main building of the Kyoto Prefectural
Hall, a national important culturalproperty, and to improve theappearance of the courtyard, in
addition to projects operated by the Weeping cherry tree in the
Kyoto Prefectural Fund to Protect and courtyard of the former mainbuilding of the Kyoto Prefectural Hall
Convey Cultural Properties.

Cooperation with Kyoto City and Kyoto Centerfor Community Collaboration
The Foundation is providing ongoing donations based on athree-party cooperative agreement signed in fiscal 2017 between
Kyoto City and the Kyoto Center for Community Collaboration.
Donations made in fiscal 2021 will be used for the repair of thestone monument “Notes of Pine Trees Given by the Emperor” in
Murin-an garden, a nationallydesignated Place of Scenic Beauty as
well as for the repair of culturalproperties designated and registeredby the city, and for renovation projects
Stone monument “Notes of Pinefor the preservation and continuation Trees Given by the Emperor”
of Kyomachiya houses.
in Murin-an garden

Assisting Kyoto City University of Arts to Conserve
and Restore Cultural Properties
The Foundation concluded a tripartite agreement with Kyoto City
University of Arts and Kyoto City Government in June 2021, allowing itto provide yet further support by promoting the restoration of culturalproperties and training of repair technicians, through the Kyoto City
University of Arts’ support for future artists “100 People of Goodwill.”

2022 Japan qualifiers

Assisting with programming classes
The Foundation continues to support Creative Adventure, anon-profit that holds programming classes, providing a place forchildren to learn after school and during long vacations.

Assisting with workshop of robots
We continue to support the “KakeRobo monozukuri classes,” aworkshop of robots organized by Kakehashi mirai, a non-profit,
through the Foundation.

Scholarships for junior high school students in
Thailand and Vietnam GLOBALThe Foundation also supports schooling for junior high school
students in Thailand and Vietnam through donations to Darunee
Scholarship of Education for Development Foundation Japan.

Cooperating with Local Environmental
Conservation Activities“Nissin Electric Forest” Preservation Activities in
Kyoto and Maebashi
Based on an agreement for forest maintenance, the Nissin ElectricGroup and the Foundation have set up “Nissin Electric Forest” inNantan City, Kyoto Prefecture and at the southern foot of Mt. Akagi
in Maebashi City, Gunma Prefecture, where they are conducting
forest preservation activities. In some areas of the prefectural forestof Mt. Akagi, commemorative trees were planted coinciding withthe cultivation of Japanese black pines. We will continue to plan
tree nursery work such as the removal of undergrowth while further
promoting tree plantings.

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44

Partner Trust
Striving to accommodate our business partners in a fair and honest manner, and recognizing that growing together withour business partners will help enhance customer value and our competitiveness.

Promotion of CSR Procurement
Basic principles of our procurement policy
Nissin Electric stands on the principles of fairness andequal opportunity, and seeks out partners without making
judgments based on nationality, business size, or the
existence or lack of past dealings.

Criteria for determination prior to initiating
business dealings
1 The stability of management●

2 The ability to deliver the required specifications,●

quality, and performance

3 Price competitiveness●Green Procurement Initiatives
The Nissin Electric Group is committed to environmental
conservation and harmony in all aspects of its corporate activities,
including through developing new technologies and products that
contribute to environmental conservation and by organizing
committees specializing in energy conservation, resource
conservation and recycling, and other activities to addressenvironmental problems.
With this in mind, we have established BASIC GUIDELINESFOR GREEN PROCUREMENT, which are available on our website.
These guidelines aim to promote green procurement, whichprioritize procuring goods and services that have less impact on
the environment and aim to eliminate or reduce the use ofhazardous chemical substances. We are promoting green
procurement together with our partners based on these guidelines.

4 Delivery and other response capabilities●
5 Maintenance and service organization●

6 Green procurement capabilities (e.g., Acquisition of●
EMS, Environmental Management System)
7● Corporate Social Responsibility initiatives

Establishing and Raising Awareness of
CSR Procurement Guidelines
The Nissin Electric Group is conscious of our social responsibility
and wants to contribute to the creation of a better society andenvironment through our business activities. To that end, we must
work together with our partners, who directly and indirectly provide
us with their products and services, in activities that promotesocial responsibility.
In 2013, we established the Nissin Electric Group CSR
Procurement Guidelines, publishing them on our website. We asked
our partners to actively promote these guidelines. We would also
like to ask our partners to inform and to promote these to theirbusiness partners.

Nissin Electric Group CSR Procurement Guidelines(excerpt)
1 Provision of Useful and Safe Products and Services●

CSR Procurement Survey
We conduct a CSR procurement survey that targeted partners
with 90% of total transaction amount in Japan. The survey allows
us to monitor the penetration of CSR initiatives in our partners’
procurement activities.
In fiscal 2021, in addition to conducting a survey at ourheadquarters region and in the Maebashi region, we initiated aquestionnaire survey for business partners of domestic
group companies.
Our entire group will ask business partners to further promote
towards CSR-based procurement, using this survey to form astronger relationship of trust.

Partnerships Throughout Our
Supply Chain
Our “Declaration of Partnership Building”
We announced our Declaration of Partnerships Building* with theaim of producing new partnerships through promoting cooperation,
coexistence, and mutual prosperity with our supply chain business
partners and value-creating businesses.

2 Enhancement of Technological Capabilities●

3 Promotion of Sound Business Management●
4 Contribution to Presentation of the Global Environment●
5 Compliance with Laws and Social Norms and Fair●
and Proper Business Activities

6 Social Contribution and Elimination of Antisocial Forces●
7 Respect for Human Rights and Considerations of●Occupational Health and Safety

8 Disclosure of Relevant Information and Promotion●of Communication with Society

9 Maintenance of Confidentiality and Information Security●
10 Prohibition of the Use of Conflict Minerals●

45

NISSIN REPORT 2022

Declaration logo
* Declaration of Partnerships Building: An initiative created by the Council on
Promoting Partnership Building for Cultivating the Future, whose members
include the Chairman of Keidanren, the President of the Japan Chamber ofCommerce and Industry, the President of the Japanese Trade Union
Confederation, and relevant ministers.

E Environmental S Social

Partnerships
Holding the Partner Meetings
We hold partner meetings with our partners to further strengthen
our win-win relationships with them. At the meetings, we explain
our management and operation status and CSR procurement
guidelines and present awards to partners who have contributed
to Nissin Electric.
In fiscal 2021, we held a meeting in an online format for the
first half of the year, with the meeting for the second half of theyear attended only by those business partners who were receiving
awards and accompanied by an online stream of the proceedings
at the event venue.
We will continue to host partner meetings and actively build
favorable partnerships with our business partners.

G Governanceinfections in place. In conjunction with this, we held the 1st study
group to begin initiatives to link up with Nissin Electric’s major
business partners toward the reduction of GHGs such as CO2
emissions from business activities.

Online council meeting

Support for Enhanced IT Literacy ofBusiness Partners
There have been considerable changes in business styleoccasioned by the ongoing COVID-19 pandemic, and we are
actively deploying and establishing a variety of IT uses in our
day-to-day work, including in remote work. At Nissin Electric, wehold lectures, such as those on uses of tablet devices and online
meetings, as well as cooperating with courses on using IT heldwith outside lecturers. By these means we are supporting thecreation of an environment for the day-to-day holding of online
meetings and business negotiations using IT devices at our major
business partners.
Since fiscal 2016, Nissin Electric has been working with ourpartners to create environments that ensure information security
is maintained as part of our
supply chain management
policies. Related actions
have including opening a
dedicated help desk in ourInformation System
Department for
consultations relating to
Cooperation with courses on using IT
information security.

Initiatives of Council for the Promotion of
Smart Activity
We established the Council for the Promotion of Smart Activity in
January 2019 with the belief that it is important for us and ourmajor business partners to deepen communication and work moreclosely together than ever before to address and solve management
challenges, including lack of human resources due to the declining
birthrate and aging population and complying with laws related towork style reforms.
In fiscal 2021, we held the 10th council meeting in April andthe 11th in June, both in an online format, with briefings on the Nissin
Electric Group’s medium-to-long-term business plan “VISION2025,”
as well as SDGs initiatives and operations plans of businessdivisions, thus strengthening ties with our business partners.
In October, we held the 12th council at the Nissin Academy
Training Center with thorough measures to prevent COVID-19

Study group on reducing CO2 emissions at the 12th council meeting

Partnerships with Distributors
Holding of Business Partner Gathering
In recognition of the expansion of business domains aimed at all
Nissin Electric Group, and with the aim of synergy effects from
activated interactions among diverse business sectors, we haveheld the Business Partner Gathering since fiscal 2019. Thesegatherings have been used as opportunities to activate exchanges
of information and opinions among partners, by means of sharingof business strategies and facilitating interactions which had notpreviously existed, with the aim to enhance ties and sales capacitiesof the Nissin Electric Group and each of its partner companies.
This had to be cancelled in fiscal 2020 due to the COVID-19
pandemic but was held in an online format in fiscal 2021, with
125 participants from 40 companies, including distributors of
Nissin Denki Shouji Co., Ltd. which carry general-purpose
products of other companies, and partner companies with sales
markets overseas, taking part.

Held in an online format based at the
Nissin Academy Training Center

NISSIN REPORT 202246

Employee Mutual Trust
Using a cooperative framework with the group’s strength to ensure that employees, who support our growth and havedirect contact with society, can live a stable life and find their purpose through work.

Promote Safety and Health Awareness
Basic safety management policy
Safety takes precedence over all else

Basic goals for fiscal 2021
Zero serious accidents and residual disability accidents● Workplace accidents: 15 accidents or less
● Occupational illness: Zero

Workplace Safety and Health Inspection Efforts
The Nissin Electric Group will practice “deciding, adhering andchecking (rules and procedures)” and rebuild a safety culture with“zero three serious occupational accidents (transport-related injuries,
electric shock, and falls)” and “building safety-conscious people
and systems” as priority activities. In addition to the president’s
safety inspection, we conduct workplace health and safety
inspections every month via the Safety and Health Committee tocheck the status of legal compliance, and make improvements inwork posture, 5S, etc., for any deficiencies and defects. We promote
improvements in facilities and working methods, sharing casestudies and countermeasures on “near misses” and “concerns,”
while implementing activities
to preempt hazards in theworkplace. In addition, weare reviewing management
protocols toward thecreation of a unified
management system forchemical substances.
President’s safety inspection

Implementing Safety Education
The Nissin Electric Group focuses on safety education, such as
risk hands-on training. We are also aiming to improve the abilities
of safety managers and machinery operators through rank-based
training. We will continue to foster a corporate culture that puts
safety first, with the core value of “safety takes precedence over
all else.”

Industrial accident frequency rate
(disabling injury frequency rate)*
Entire manufacturing industry

Nissin Electric (non-consolidated)(Frequency rate)
2.5
2.0
1.5

1.02

1.20

1.20

0.59

0

0

2017

2018

2019

1.21
0.38

0.34

2020

2021

1.0
0.5
0

NISSIN REPORT 2022

At the Nissin Electric Group, we have also launched Safety
Committees at overseas group companies in the ASEAN and
Chinese-speaking regions, holding monthly online factoryinspections on Japan-standard safety criteria and required levelsof safety. We are working to improve sensitivity to hazards andprovide guidance on what to look for during inspections to safety
managers at each company, promoting disaster countermeasuresand advance prevention initiatives for disasters.
In addition, we hold competitions to present case studies ofimprovements made at each division and group company and toshare information so that each and every employee fully
understands the importance of safety and is taking active steps
improve. In fiscal 2021, Nissin Electric (Wuxi) Co., Ltd. and Nissin
Electric (Thailand) Co., Ltd. which received the excellence
award at the competitions for
the Chinese-speaking and
ASEAN regions came together
for the 1st Global Safety,
Environment, and Quality
Competition held in November,to facilitate a furthered
improvements in awarenessWorkplace safety and health activities
at Nissin Electric (Thailand) Co., Ltd.
of safety.

Health Management
Stress Check Implementation
The Nissin Electric Group has implemented an annual stress checkfor all group employees since fiscal 2016, with the aim of advanceprevention of mental health concerns. In fiscal 2021, 92% of
employees took the stress check, with physician-led consultation
provided primarily by an industrial physician to those persons who
wished to avail of consultation among employees identified ashaving high levels of stress. In addition, we gave overviews ofself-care strategies to everyone who took the stress check andintroduced occupational health staff including the industrial physician,as well as on-site counsellors, and telephone, email, and in-person
consultations services from external bodies. We offered feedback
to respective division managers on the outcomes of collective
analysis of the stress check and are promoting initiatives for the
improvement of workplace environments in cooperation among
division managers, the Human Resources Department, Human
Resources Development Department, and occupational health staff.

■ External evaluations
Certified 2022 Outstanding Health and Productivity
Management Organization by the Ministry of Economy,
Trade and Industry(FY)

Note: The figures for the entire manufacturing industry in FY2021 are omitted because they
were not yet announced by the Ministry of Health, Labor and Welfare as of March2022 when this graph was created.
Period covered by data: January 1-December 31 of each fiscal year
Scope of data: Employees directly employed by Nissin Electric (non-consolidated) only
* Frequency rate = (number of casualties due to industrial accidents ÷ total number ofactual working hours) x 1,000,000

47

Workplace Safety and Health Activities within theGroup and Globally GLOBAL

Nissin Electric was certified for 2022 Outstanding Health andProductivity Management Organization for large enterprise category.
Continuing from the 2020 certification, this certification includes NHVCorporation, Nissin Business Promote Co., Ltd., and Nissin Denki
Shouji Co., Ltd. For SME category, Nissin Systems Co., Ltd. andNissin Pulse Electronics Co., Ltd. continue to receive certifications.

E Environmental S Social

Promote Educational and Training
Opportunities That Support Personaland Professional Growth

Conducting Employee Training and Education
Within the Group and Globally GLOBAL

Nissin Academy Developing the Next Generation of
Human Resources Who Will Play an Active Role
The Nissin Electric Group has operated the Nissin Academy, an
education and training system, aimed at enhancing the motivationof employees and supporting their personal growth so they cancontribute to society.
The president serves as the head of the Academy, the Human
Resources Development Department acts as the secretariat, while
executive officers serve as advisors. The Academy designs its
training of human resource development in a way that captures
the three themes, education and training for self-improvement,
on-the-job training, and job rotation.
The Nissin Academy system consists of General Training, aBusiness Skills Course, a Technology and Skills Course, andDepartmental and Group Company Internal Training. Attendanceat courses centered around education based on rank to allow all
employees to acquire the knowledge and thinking required for theirposition and job level is being made mandatory.
Goals of development● Human resources who share the philosophy, businessmindset, and vision● Human resources who can use the PDCA cycle and havethe ability to act as management● Human resources who can solve problems andimprove productivity● Human resources who can think and act throughout thegroup globally

Education system

Management structure

Nissin Academy

Dean
President
Vice President
Supervising
Executive Officer

NissinExecutives
Seminars
Departmental andGroup Company
Internal Training

Technology and
Skills Course

Business
Skills Course

General Training

Secretariat(HumanResources
Development
Department)

Steering
Committee
Executive
Officers
Main role of Steering
Committee:
Overall direction andadvice on policies

Annual course participants(Number of people)

6,519

7,000
6,000
5,000

5,259

4,507

4,962
3,850

4,000

G Governance

3,000
2,000

In collaboration with local interpreters, the Nissin Electric Grouphosts online training focused on learning business skills, including
those on using computer software, and on presentations andlogical thinking, in overseas group companies in the ASEAN and
Chinese-speaking regions.
In addition, we hold training designed to facilitate understandingof the Nissin Electric Group’s Corporate Philosophy and share theaims of the medium-to-long-term business plan “VISION2025,” topromote the development of group and global human resources,
while also conducting training intended to improve awareness ofsafety and quality.

Skills Competition to Pass on Know-how and
Improve Skills and the Quality of Work GLOBALThe Nissin Electric Group holds the Skills Competition for the
purpose of passing on know-how and improving skills and thequality of work of our engineers.
The fiscal 2021 Skills Competition involving four practicalcompetitions (screw-tightened assembly, crimping and wiring
connection, forklift truck, and reach forklift truck) were conductedaccompanied by a live relay at the Nissin Academy Training Centersin the Kyoto region and the Maebashi region. Participants werealso challenged in four other skills (coated arc welding, CO2 arc
welding, TIG welding, and air spray coating), in which participants
sent in their competition materials to be judged. 128 engineersfrom Japanese and overseas group companies and partnercompanies participatedthroughout the Skills
Competition. We areworking to further improve
professionalism by giving
feedback from the judges
on good points andaspects that
Crimping and wiring connection competitionneed improvement.

Small Group Kaizen Activities to Strengthen Our
Manufacturing Foundation and Cohesiveness GLOBAL
Through small group kaizen activities that find problems in theworkplace and in work, and accumulate improvements as a team,
we aim to establish a way of working based on facts and data,
and are promoting it globally to strengthen our manufacturingfoundation and cohesiveness. Once a year, we hold a briefing on
improvement activities for the previous year. At the global
conference held online in July 2021, a total of eight teams—fourfrom Japan, three Chinese-speaking teams, and one ASEAN
team—presented their activities where they were examined fromthe perspectives of improvement process, results, continuity, andlateral roll out. We will continue to hold these conferences to raise
employee awareness that will lead to the further growth of the
Nissin Electric Group.

1,000
0

2017

2018

2019

2020

2021

(FY)

NISSIN REPORT 2022

48

Employee Mutual Trust

Utilize a Diverse Workforce

Promoting Employment and Expanding Businesswith People with Disabilities Playing a Leading Role

Promote Diversity in Hiring Practices
and Assignments GLOBALThe Nissin Electric Group considers the securing of diversity inhuman resources essential for sustained growth and enhancing
corporate value, actively promoting the hiring, assignment, andcareer development of female employees, as well as the recruitingof mid-career employees (career hiring). In addition, we promote
the assignment of employees of foreign nationalities to executive
and top management positions at overseas group companies.

Number of female employees, rate of female employees
hired and female managers
Number of female employees
Rate of female managers(Number of people)
500

495

400
300

Rate of female employees hired

516
30.0

0

(%)
35
30

3.0

3.2

22.9
3.2

2019

2020

2021

25.3

%

200
100

527

%

25
20
15
10
5
0
(FY)

Scope of data: Nissin Electric Co., Ltd., Nissin Ion Equipment Co., Ltd., Nissin Systems Co., Ltd.,
Nippon ITF Inc., Nissin Pulse Electronics Co., Ltd., and Auland Co., Ltd.

Support for Further Participation of Women in the Workplace

Nissin Heartful Friend Co., Ltd. (NHF) was established in
September 2015 as a place for people with disabilities to achievesocial independence and create rewarding work in which they canplay a leading role. In March 2016, NHF received certification asa special subsidiary of Nissin Electric Co., Ltd., receiving special
subsidiary certification with other related companies in the grouplater in December.
The NHF Kyoto office employs 20 people (including 16 people
with disabilities) and the NHF Maebashi office employs eight people(including five people with disabilities) (as of April 1, 2022).
NHF undertakes a wide range of work that includes data entry(such as business cards and forms), catalog management andmanufacturing assistance work, and managing green space andon-site work at the Human Resources Department of Nissin
Electric, in addition to the digitization documents and drawings
that it has accepted from the Nissin Electric Group since its
inception. Moreover, we are newly outsourced operations relating
to confirmation ofpre-vaccination screening
questionnaires for COVID-19
workplace-based
vaccinations. We will continue
to work together to expand
its business.
Start of green space management
at the NHF Maebashi office

Employment rate of people with disabilities
Nissin Electric Group employment rate

Action plan based on the Act on Promotion of Women’sParticipation and Advancement in the Workplace(April 1, 2020–March 31, 2023)(%)● Goal 1: Expand the number of people who can use thecareer support system, which conducts interviewson the career development of employees who leave
work due to childbirth or childcare. Increase thenumber of interviews and support women’s success(Aim for five or more interviews per year)

2.0● Goal 2: Create a new work-from-home system that can beused for childcare, elderly care, and treatment of
illness to create an employment environment thatmakes it easy for both men and women to raisechildren, aiming for 60% of women who arebalancing work and family to use this system

Encouraging use of the career support system
We have implemented a career support system that encourages
their career development by career supporters, so that female
employees can play an active role in a wide range of fields at
Nissin Electric. There are also childcare leave supporters who
introduce the use of the work-life balance support system andconsult with employees. We are working to create a culture
where they can return to work with peace of mind by interviewing
both supporters to create an opportunity to think about their future
careers and to relieve any anxiety about changes in working
styles. We are also working to establish the system by expanding
the scope to female employees who have taken childcare leave.
In fiscal 2021, 15 employees used the career support system.

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NISSIN REPORT 2022

3.0

2.34

2.43

2017

2018

Statutory employment rate

2.66

2.71

2.62

2.54

2019

2020

2021

2022

%

1.0

0

(Year)

Note: Figures up to 2021 are as of June 1 for each year, and figures for 2022 are to theend of March.
Scope of data: Nissin Electric Co., Ltd., Nissin Ion Equipment Co., Ltd., Nissin Systems Co., Ltd.,
Nippon ITF Inc., and Nissin Heartful Friend Co., Ltd.

Encourage Diverse Work Styles andWork-Life Balance
Creating a fulfilling and worker-friendly workplace
Nissin Electric is implementing various measures to improve
productivity and create a meaningful style of work, as “Smart
Activities,” with the aim of “making corporate culture accepting
diverse views and workstyles.”We launched the Labor-Management Expert Committee for
the Promotion of Smart Activities and are further focusing on creating
a culture that recognizes various work styles and diversity by
drafting and deploying guidelines for using work-life balance

E Environmental S Social

support system. Also, the Work Style Reform Promotion Office wasestablished within the Human Resources Department in fiscal
2021 to support the creation of workplace environments where
each of employees can collaborate by demonstrating their uniqueabilities and realize “fulfilling workplace” that allows them to take on
new challenges each day and “worker-friendly workplace” throughflexible work styles.

Advancing Smart Activities and Encouraging Use of
Our Work-Life Balance Support System
Action Plan Based on the Act on Advancement of
Measures to Support Raising Next-Generation Children(April 1, 2020–March 31, 2022)

G GovernanceEncourage employees to take various paid leave
We have introduced various leave systems, including paid leaveby the hour system, half-day leave system, clear leave system, andspecial leave system, to make it easy for employees to take time
off for diverse life events and stages of their lives. We have identified
the how much time off each employee takes, and when we learn
of individuals who have not taken much time off, we areencouraging employees to take paid leave.

Days of annual paid leave and rate taking paid leave
Days taken paid leave

Rate taking paid leave

(Day)

(%)

20

80

16.2

16.4

● Goal 1: Create an environment where it is easy for male
employees who wish to take childcare leave cantake it, and aim for eight or more male employees
to take childcare leave annually

15

73.0

15.3
68.2

● Goal 2: Create a new work-from-home system that can beused for childcare, elderly care, and treatment of
illness to create an employment environmentthat makes it easy for both men and women toraise children● Goal 3: Achieve rate taking annual paid leave of 67%

71.0

70

%

10

60

5

50

Encourage male employees to use childcare leave system
We have been sending “letters for childcare leave” to employees who
have children and their superiors from fiscal 2019. We are further
promoting the use of the support system for male employees tosupport their spouses after birth and to share childcare, such as
introducing the experiences of taking childcare leave in a letter
addressed to male employees and hearings from senior employees
encouraging them to use the childcare leave system.

Number of users of childcare leave and reduced working
hours for parenting system
Number of users of the childcare leave system
Number of users of the reduced working hours for parenting system
Number of male employee users(Number of people)
60

48

50

30

36

32

12
5
2019

2020

2021

40
(FY)

Scope of data: Nissin Electric Co., Ltd. including seconded employees (non-consolidated)■ External evaluations
Certified “Platinum Kurumin”
by the Minister of Health, Laborand Welfare
In December 2020, we received thespecial certification “Platinum Kurumin”
based on the Act on Advancement of
Measures to Support Raising
Platinum Kurumin certification markNext-Generation Children.

Employee Satisfaction Survey

13

20

0

2020

Strengthen Communication

26

10

2019

42

41

40

0

2021

(FY)

Scope of data: Nissin Electric Co., Ltd. including seconded employees (non-consolidated)

New work-from-home system to promote flexible
work styles
We are conducting trials toward establishing a work-from-homesystem for childcare, elderly care, and treatment of illness andexploring ways to create systems which allow employees to work
flexibly and in peace of mind.

The Nissin Electric Group conducts an employee satisfaction
survey every year as one of its communication tools to gain adetailed understanding of employee awareness and attitudes fromvarious perspectives.
The fiscal 2021 survey targeted around 3,000 people andreceived a response rate of 92.9% that included numerous opinions.
In addition to offering feedback on the survey results to each division,
we share survey results alongside messages from division
managers and presidents of domestic group companies on theinternal company website. We also use the survey results to identify
the issues of the group overall and to implement measures tofurther improve the work environment for employees.

NISSIN REPORT 2022

50

Initiatives for Fair andTransparent Corporate Management
Committed to strict compliance with all laws and regulations as well as to enhanced corporate governance.

Corporate Governance
Basic Philosophy on Corporate Governance
The Nissin Electric Group’s Principles of Activities aims to build
robust relationships of trust with stakeholders (customers,
shareholders, society, partners, employees), while the Group’s
Corporate Philosophy aims to contribute to achieving a vibrantsociety in harmony with the environment through corporate
activities that support the foundations of society and industry.
We will strive to further enhance corporate governance basedon the following basic philosophy in order to operate our businessbased on the above Corporate Philosophy and realize sustainablegrowth and enhance our corporate value.

audit). The Corporate Governance structure also includes theNomination and Compensation Committee, which is in charge ofsuch matters as appointing and dismissing executive officers anddirector compensation, and the Parent-Child Transaction Deliberation
Committee, which deliberates on important transactions and behavior
that involve conflicting interests between the parent company andminority shareholders.

Corporate governance structure
General Shareholders’ Meeting
Board of Directors

Audit & Supervisory Board

Accounting auditors

Nomination and Compensation Committee
Parent-Child Transaction Deliberation Committee
Board of Managing Directors
Chairman and PresidentInternal Audit Department
SDGs Committee

1 We will create an environment in which shareholders●
can exercise their rights appropriately and ensure
the equality of shareholders.

4 We will establish a system in which the Board of●
Directors can fully exercise its functions of basic
policy-making and supervision of management.
5 We will aim for sustainable growth and enhance our●corporate value over the medium to long term throughconstructive dialogue with shareholders.

In June 2021, a revised Corporate Governance Code went into
effect, and in November 2021 we revised our Corporate
Governance Guidelines to comply with the principles in therevised Corporate Governance Code and issued a Corporate
Governance Report.** The Nissin Electric Group Corporate Governance Guidelines andCorporate Governance Report can be accessed on the company website.

Corporate Governance Structure
The Nissin Electric has outside directors accounting for morethan one-third of our directors. We have an Audit & Supervisory
Board with a total of five outside officers, comprised of two outside
directors and three outside auditors (each includes one female
officer). The Board of Directors and the Audit & Supervisory Board
are composed of members of diverse backgrounds in terms ofgender, global awareness, work experience, financial andaccounting, and legal knowledge and carefully balances experienceand ability.
The Board of Directors sets up an appropriate structure forinternal control of the entire group and group-wide risk management
and also utilizes the Internal Audit Department for monitoring of
the operation of this system.
To ensure that the Nissin Electric Group does business legallyand properly, auditors, the Internal Audit Department, andaccounting auditors mutually collaborate on three-way audits(namely, an auditor’s audit, an internal audit, and an accounting

51

NISSIN REPORT 2022

Corporate staff departments

3 We will disclose company information in a timely and●appropriate manner to ensure transparency.

Compliance Committee
Risk Management Committee

Business divisions

2 We will strive to build relationships of trust with●stakeholders, such as customers and shareholders.

CSR Promotion Committee

Risk Management Working-Level Committee
Information Security Committee
Human Rights Promotion Committee
Small Group Activities Promotion Committee
Quality Control Committee
Environmental Committee
Central Safety and Health Committee

Thorough Compliance
Basic Policy on Compliance
The Nissin Electric Group believes that compliance in the form ofstrictly observing laws, regulations, and corporate ethics is thecore of management and forms the fundamental foundation for theGroup’s future staying power and growth. We therefore strive tothoroughly comply with all laws and regulations, observe ourPrinciples of Activities by building relationships of trust based on
our Business Mindset, and realize our Corporate Philosophy.
Moreover, we will continue to focus on developing a global business,
and we will further strive to observe and respect human rights,
international rules, and the laws and culture of every country
through the actions of every employee.

Maintaining the Excellence of Our Compliance System
Based on the Nissin Electric Group Corporate Philosophy,
Principles of Activities, and Business Mindset, the Nissin
Electric Group has established the Nissin Electric Group
Corporate Behavior Charter and the Nissin Electric Group
Employee Conduct Guidelines. We strive to make every group
employee in Japan and overseas aware of these declarations
by, for example, distributing them in pamphlet form both inJapanese and in translations into every language represented
in the group. In addition, we further instill the principles ofcompliance through the Compliance Committee that promote
policy, education, and awareness-raising activities in cooperation

E Environmental S Social

with the Area Compliance Managers* at every workplaceand group company.
* Area Compliance Manager: A person responsible for ensuring thorough compliance ateach workplace. ACMs are selected from division general managers or the presidents ofgroup companies.

President

Audits report on compliance status

Audit & Supervisory Board

Internal Audit Department

AuditsBoard of Managing Directors

Board of Directors

Compliance Committee

Area ComplianceManagers (ACM)

Compliance rules
Nissin Electric Group Corporate
Behavior Charter● Nissin Electric Group Employee
Conduct Guidelines● Rejection of antisocial forces
declaration●

Whistleblower
Reporting
System Contact

Nissin ElectricGroup(Based on the Nissin
Electric Group
Corporate Philosophy, etc.)●

excessive hospitality or gifts,” and we make every effort to stressthe importance of observing our policy of prohibiting bribery togroup employees both in Japan and overseas.

Respect for Human Rights

Compliance structure
Chair: President
Functions● Establish basic
compliance policy● Promote compliancemeasures

G GovernanceHelp Line Desk
(3 lines: general,
female contact line,
and outside lawyer)● Report line tooutside officers●

Compliance training
sessions
Prepare and distribute laws
and regulations manual
Etc.
●
●

Audits on compliance status

Enhancement of the Whistleblower Reporting System
As a compliance-related whistleblower reporting and consultation
contact, including human rights and harassment issues, the Nissin
Electric Group has set up a Help Line Desk (3 lines: general,
female contact line, and outside lawyer) as well as a report line tooutside officers. In addition, we have established company rules
to ensure that whistleblowers are treated properly. The Help Line
Desk received 23 consultations in fiscal 2019, 17 in fiscal 2020,
and 20 in fiscal 2021, and we work to independently rectify andresolve problems before they become serious.

Promotion of Compliance Education
In fiscal 2021, we conducted nationwide compliance training
sessions for employees in Japan covering such topics as cartel andbid-rigging prohibitions and thorough compliance with the
Subcontractor Act. In addition, we conducted compliance training
sessions for executive officers (two times a year) that cover such
topics as important points to observe concerning the Antimonopoly
Act when forming business partnerships.
Moreover, in China and the ASEAN region we conducted
overseas group employee compliance training sessions based on
the laws and regulations of each country.
Other efforts to make our employees aware of the importanceof compliance include a monthly compliance message for all group
employees posted on our internal company website, the quarterlygroup newsletter Nissin containing articles on compliance topics,
and regular reminders to always faithfully observe compliance.

Prohibition of Bribery
The Nissin Electric Group Employee Conduct Guidelines statethat “we pledge to adhere to proper business practices and torefrain from engaging in acts of bribery or giving or accepting any

In the Nissin Electric Group Corporate Behavior Charter, whichstates the norms of behavior that all employees must follow, andin the Nissin Electric Group Employee Conduct Guidelines, which
establish the standards of practice that employees should follow
when conducting day-to-day business, the Nissin Electric Group
commits to respecting fundamental human rights and to notpractice discrimination. In addition, we have established the
Human Rights Promotion Committee as a company-widecross-functional organization.
Moreover, we have clearly stated the company policy ofprohibiting harassment, and we have revised the relevant rules of
employment and notified all employees about these changes.
In addition to a fair employment selection process free of
discrimination based on race, gender, nationality, disability, or
anything else, we promote awareness-raising activities that deepen
proper understanding and awareness of various issues concerning
human rights, and thereby cultivate mutual respect of human rights
among all employees and create a vibrant and positive workplace.

Human rights education and training

Besides training by level for new employees, career employees,
and newly appointed management-level employees, we periodicallyconduct awareness training for members of the Human Rights
Promotion Committee as well as for all employees. Moreover, In
fiscal 2021, we conducted group training and online courses onsuch topics as the human rights-related problems of power andsexual harassment prevention and corporate ethics.

Partnerships with external organizations and government

The Nissin Electric Group is a member of the Industrial Federationfor Human Rights, Kyoto, and besides participating in training
workshops and courses sponsored by Kyoto Prefecture and theCity of Kyoto, we take part in a variety of awareness-raising activities
aimed at promoting respect for human rights.

Risk Management
Thorough Risk Management
The Nissin Electric Group meticulously manages the risks that candamage our business and promotes measures to prevent theoccurrence of loss. Moreover, in order to minimize loss, maintainbusiness continuity, and recover quickly in the unlikely event thatan emergency resulting in loss occurs, each business division has
prepared a business continuity plan (BCP) and has organized andoperates a management and countermeasures framework for
responding to all kinds of risk.
In order to promote group-wide risk management andcountermeasures, including business risk, the Nissin Electric Grouphas established the Risk Management Committee to decide on
the group’s risk management approach, including basic policies
and countermeasures. Moreover, countermeasures and the like for
especially important matters related to business risk are deliberated

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52

E Environmental S Social

G GovernanceInitiatives for Fair andTransparent Corporate Managementby the Board of Managing Directors, while the Risk Management
Working-Level Committee takes specific and concrete actions forall other risks. In addition, the Risk Management Committeemonitors the status of risk management in cooperation with theInternal Audit Department and auditors and rectifies any problems
that monitoring discovers.
In every business division and group company, the division
general manager or group company president serves as the risk
manager responsible for promoting risk management and measures
for the division or group company.
In addition, designating a division responsible for each risk
category enables us to cross-organizationally manage risks that
affect the entire group.

Risk management structure
Risk Management Committee
Board of Managing Directors

Risk Management Working-Level Committee

Division responsible for each risk

We will continue to further strengthen our risk management
and implement measures appropriate to changes in thebusiness environment.

Disaster Preparedness
Safety confirmation system

The Nissin Electric Group has put in place an emergency contact
system for confirming the safety of employees and family members.
When an earthquake greater than 5 on the shindo (seismic intensity)
scale occurs, the system automatically sends a safety confirmation
email to employees residing in or commuting to the affected area.
The system automatically tabulates the responses, and safety
conditions are then evaluated on an organizational and individuallevel and action appropriate to conditions are taken.

Regular disaster prevention drills

Production
EngineeringIntellectual
Property

Quality Control

Environment

Sales Promotion

Procurement

Information
Systems

Financial &Accounting

Human
Resources

General Affairs

Legal Affairs

Corporate
Planning

Every business facility organizes a firefighting team and conducts
regular drills under the guidance of, and in cooperation with, thefire department. The drills include a drill sequence covering
everything from leading evacuations to conducting roll calls andreports and skill and knowledge instruction aimed at improving
firefighting skills.

IT infrastructure to enable business continuity
Risk managers for each division (division GMs / group company presidents)

Measures Against Infections
Efforts to prevent the spread of COVID-19

Based on the following policies established by the COVID-19
Response Headquarters, the Nissin Electric Group is continuously
taking action to prevent the spread of COVID-19.

Our basic policy

1 We place the highest priority on ensuring the health●and safety of local residents, customers, partners,
employees working in the group, their families,
and all other stakeholders.
2 We respond to the needs of customers and society●
in which the group operates.
3 All employees working in the Nissin Electric Group●will always be alert and practice a “New Lifestyle”
based on government guidelines, etc. in order toprevent recurrence of the spread of COVID-19.

In addition to restrictions on behavior during business trips andsocial gatherings and other restrictions on behavior appropriate
to infection conditions, the Nissin Electric Group has conductedat-work corona virus vaccinations in accordance withgovernment policy.
Moreover, as a “new normal” workstyle, we encourage remote
work, flexible work hours, and other flexible work approaches,
and we promote doing such activities as education and training,customer support, technical support, and on-site inspection of
manufactured products remotely.

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NISSIN REPORT 2022

Important communication lines in Japan between businessfacilities and between business facilities and data centers are
duplicated, so that if a communication circuit is somehow damaged,
operation automatically switches to a backup line and business
continues unaffected. In addition, major overseas affiliatedcompanies are strengthening their communication networks byinstalling dedicated lines and other improvements. Moreover, thedigital data and computer systems required for sustaining business
operations are consolidated in an in-company server located in adata center possessing a security system equipped with private
power generators and outstanding seismic durability. As acountermeasure against server malfunctions or damage, data andsystem back up is stored in different media in different locations,thus ensuring that our IT system can continue functioning even in
the unlikely event of a natural disaster striking the Head Office& Works.

Utilizing ICT and Thorough Information Security
The Nissin Electric Group has established the Information Security
Committee chaired by the group’s executive officer in charge of
information systems, and we carry out timely revisions of company
rules and regulations in accordance with social conditions, have
put in place a variety of measures to prevent information
security problems such as leaks, and conduct security training forcompany employees and business partners. Measures we took in
fiscal 2021, during the corona virus pandemic, include expanding
our communication tools and the scope of log monitoring so thatthey can support a variety of workstyles, including remote work.

External Main Awards and Certifications

2021
Jun.

Nissin Electric Group Foundationfor Social Contribution
Kyoto City Donor Recognition
City of Kyoto

Nissin Ion Equipment Co., Ltd.
The 27th Semiconductor of the Year 2021
Grand Prix in the Semiconductor Manufacturing
Equipment category
Ion Implanter for SiC Power Devices“IMPHEAT-II,” Which Has About
Three Times the Productivity ofConventional Systems
Electronic Device Industry News
Nissin Electric Co., Ltd.,
Nissin Electric Group Foundationfor Social Contribution
Kyoto Prefecture Donor Recognition
Kyoto Prefecture2022

Nissin Electric Co., Ltd.,
Nissin Ion Equipment Co., Ltd.
AM-FPD’21
AM-FPD’20-Best Paper AwardInternational Society ofFunctional Thin Film Materials& Devices

Oct.

Nissin Electric Co., Ltd.
Kyoto Prefectural Regional Development Excellent
Construction Contractor Commendation
Encouragement Award
Construction of the Rakusai
Purification Center for the
Right Bank of the Katsura
River Basin Sewerage
SystemKyoto Prefecture

Nov.

Nissin Electric Co., Ltd.,NHV Corporation,
Nissin Business Promote Co., Ltd.,
Nissin Denki Shouji Co., Ltd.
2022 Outstanding Health andProductivity Management Organization(large enterprise category) certification
Ministry of Economy, Trade and Industry

Mar.

Nissin Electric Co., Ltd.
The 70th Electric Industry Technology Achievement Awards
Encouragement Award
Development of Power Wheeling Function That
Contributes to Improving the Ratio of Renewable
Energy and Reducing CO2 Emissions
Japan Electrical Manufacturers’ Association (JEMA)

Nissin Systems Co., Ltd.,
Nissin Pulse Electronics Co., Ltd.
2022 Outstanding Health andProductivity Management Organization(SME category) certification
Ministry of Economy, Trade and Industry

External Evaluations
Nissin Electric responds to various surveys used as one indicator for evaluating a corporation. We consider questions appearing in thesesurveys to cover themes of great interest to society, and thus, we reference them in developing our CSR activity plan. Also, survey results
enable us to check our position among peers and are utilized to invigorate initiatives in an effort to become a company that can earn evengreater trust from stakeholders.

The 16th CSR Rankings (Weekly Toyo Keizai, March 5, 2022 edition)
CSR Rankings is a survey that evaluates companies’
CSR initiatives from the four perspectives of humanresources utilization, the environment, corporate
governance, and social contributions, with the purposeof identifying companies that are trusted by a broad
range of stakeholders. Toyo Keizai Inc. also uses its
listed companies financial database to quantify financial
rankings (profitability, soundness, and size), which inturn is also reflected in the rankings.
In 2021, we were ranked 166th (compared with
159th in 2020) among 1,631 companies (1,362 valid
responses). Despite a drop in the overall ranking, as we
did last year, we received an evaluation of AAA for all
four areas of CSR activity.

Score radar chart for 2021

Human resources utilization

100.0

Nissin ElectricIndustry average(electrical equipment)

80.0
Size

60.0
40.0

The environment

20.0
0.0

Corporate
governance andsocial contributions

Soundness

Survey: Toyo Keizai Inc.

Profitability

NISSIN REPORT 2022

54

Forge a bright future for both people and technology

47, Umezu-Takase-cho, Ukyo-ku, Kyoto 615-8686, Japan
Tel:+81(75)-861-3151 Fax:+81(75)-864-8312
URL https://nissin.jp/e/Sekison-tei
Sekison-tei was the beloved residence of noted author Junichiro
Tanizaki. It was named Senkan-tei by Tanizaki. The almost century-old
compound faces the Tadasu no Mori Forest of the Shimogamo Shrine
World Heritage Site, and its Sukiya-style building and pond withsurrounding path made it a favorite of Tanizaki’s.
When the Nissin Electric Group, bound by fate, took over the
residence in 1956, Tanizaki renamed it “Sekison-tei.” For over half acentury until now, we have kept its promise with Tanizaki to maintainthe residence in the same condition as he left it, as he desired to see
it on his visits to Kyoto.
Sekison-tei is an invaluable asset, and proof that the Nissin ElectricGroup puts its Principles of Activities of “Integrity, Trust and Long-term
Relationships” into practice.

Cat.No. NR-22-E
2022.11.PDF BC