NISSIN REPORT 2013
Company Profile / Sustainability Report
47,Umezu-Takase-cho, Ukyo-ku, Kyoto 615-8686, Japan
Tel:+81(75)861-3151 Fax:+81(75)864-8312
URL http://nissin.jp/eSekison-tei
Sekison-tei was the beloved villa of a great writer Junichiro Tanizaki, which was
initially known as Senkan-tei. The almost century old compound faces theTadasu-no-Mori Forest of the Shimogamo Shrine World Heritage site, and its
Sukiya-style building and stroll style garden with pond made it a favorite of Tanizaki.
He passed over the residence to Nissin in 1956 when he left Kyoto. At that time, herequested that the villa be maintained in the same condition since he wanted to see
it on his visits to Kyoto. The name Sekison-tei was given by Tanizaki, and a framedcalligraphy piece written by Tanizaki bearing this name hangs in the main house.
The Nissin Electric Group continues to conserve Sekison-tei in the same
condition as Tanizaki handed it over some 57 years ago as a symbol of its code of
conduct “Integrity, Trust and Long-term Relationships.”

Cat.No. NR−13
2014.1.PDF BC

Message from the President

Editorial Policy

CONTENTS
Editorial Policy

1

Message from the President

2Company Data and Management Policy

3Group Companies and Sites in Japan

5

Businesses and Products

7Power System Equipment

9
10
11
12

Charged Beam Equipment and Processing
Renewable Energy and Environment
Life Cycle Engineering

Reporting period: April 1, 2012 to March 31, 2013

Special Feature
Smart Power Supply Systems (SPSS) – Balancing
Electricity Conservation with a Stable Supply of Power

Our Commitment to CSRThis report presents the Nissin Electric Group’s corporate data,business activities from fiscal 2012, as well as its approach tocorporate social responsibility (CSR). The results of our core CSR
activities from fiscal 2012 can be found in the table on pages 15 and16. Our responsibility and actions with stakeholders are summarizedaround the Five Trusts of our Code of Conduct. Photographs of ouremployees, who form the front lines of our CSR efforts, are usedthroughout the report to convey our activities in a clear andeasy-to-understand manner. Readers are asked to provide their frankand honest opinion so that we may reflect this important feedbackin future reports.

13

Published: June 2013
Next edition: June 2014
Previous edition : June 201215

Reporting Areas and Scope

Customer Trust

17

Employee Mutual Trust

18

Partner Trust

19

Shareholder Trust20

The environment
Nissin Electric Co., Ltd. and the following five affiliates in JapanNHV Corporation/Nissin Business Promote Co., Ltd./
Nissin Ion Equipment Co., Ltd./Nippon ITF Inc./
Nissin Pulse Electronics Co., Ltd.

Societal Trust

21*The initiatives of certain overseas affiliates are also highlighted.

Society
Nissin Electric Co., Ltd. and the following eight affiliates in JapanNHV Corporation/Nissin Business Promote Co., Ltd./
Nissin Denki Shouji Co., Ltd./Nissin Systems Co., Ltd./
Nissin Ion Equipment Co., Ltd./EcoTron Co., Ltd./
Nippon ITF Inc./Nissin Pulse Electronics Co., Ltd.

GLOBAL

Initiatives for Fair and Transparent
22
Corporate Management
Environmental Initiatives

Sharing our commitment to fulfill our role asa contributing member of society to stakeholders

23

GLOBAL This mark denotes a section on our overseas initiatives.

Reference Guidelines
Sustainability Reporting Guidelines G3.1 by the Global Reporting
Initiative (GRI)
Environmental Reporting Guidelines 2012 by the Ministry of
the Environment, Japan

Origin of Company Name
The name “Nissin” is derived from the inscription on the basin usedby King Tang, the founder of the Yin Dynasty (17th – 11th century
B.C.). This inscription means: “Truly new each day. New each andevery day. Again, new each day.” According to the “Great Learning,”
one of the Four Books (China’s classic works on Confucianism),
the noble and benevolent ruler engraved these words on the basin,
which he used every morning, as a constant reminder of theimportance of making continuous and untiring efforts to innovate
himself every day.
Combining the two Chinese characters, “nichi” (day) and “shin”(new), used in this inscription, the company name was created sothat, following this precept, we would strive to develop original andinnovative techniques each and every day to forge a bright future forboth people and technology.

湯之盤銘曰 苟日新 日日新 又日新
Source: “Great Learning,” one of the Four Books of Confucianism

Starting this year, Nissin Electric will begin publishingsustainability report may have enabled me to better

the Nissin Report, which combines our company profile

understand that particular company because it provides

and sustainability report into a single concise report.

a more human touch to presenting its culture, character,

Our company profile has traditionally been used to
introduce the Nissin Electric Group by showing the types

With this in mind, we believe that combining the company

of products we manufacture. Whereas, our sustainability

profile with the sustainability report will help us to more

report highlighted not only our business activities, but also

accurately convey our businesses, culture, and personality

our community fellowship activities to emphasize ourto our stakeholders, which served as the impetus behindconnections with society. While the company profile did

the decision to publish only the Nissin Report from now on.

provide an overview of our products and businesses,

Through this new integrated Nissin Report, we hope to

I could not help but feel that the content lacked a certain

present an overview of our business activities and products

degree of warmth. The sustainability report conveyed toas well as our commitment to fulfill our role as a contributing

readers not only our business activities, but also

member of society. I also hope that you read about our

the achievements we made through our business activities as

challenges and struggles as well, so that gain a bettera contributing member of society, as well as any areas where

understanding of our vision for the future, stance, andwe were unable to achieve our targets. In this regard, I feelbusiness activities in a more affable manner.

that the sustainability report provides the human aspects ofour commitments and trial and error approaches.
Whenever I meet with a new company I always read
Conjectural replica of King Tang’s basin

and background.

I conclude my message for this first-ever Nissin Reportby humbly asking for your continued support and patronageof the Nissin Electric Group as we move forward.

their company profile, but now that I think about it, their
June 2013

Glossary

1•Corporate Social Responsibility (CSR): The responsibilities that a company maintains toward stakeholders involved in its business activities.
These responsibilities include fair business practices, product quality improvements, environmental
consideration, and helping to build a sustainable society for the future.

Hideaki Obata, President

2Company Data and Management Policy

Aspiring for greater growth as a multinational
company that supports society and industry
Company Outline (as of March 31, 2013)
Company Name Nissin Electric Co., Ltd.
Incorporated
April 11, 1917
Stated Capital 10,252,840,000 yen
Employees
4,971 (Consolidated)

Medium-to-Long-Term Business Plan “VISION 2015”

Issued Shares
Stock CodeOperations

107,832,445 shares
6641 (First Section of the Tokyo Stock Exchange)
Manufacture and sales of electrical equipment andinstruments as well as ancillary construction works

Corporate Logo
(A unified corporate logo for all Nissin Electric Group companies)

Net Sales (Consolidated)

Employees by Location (Consolidated)
Taiwan: 115

Others: 224

2.3%

Thailand: 628

12.6%

4.5%

Employees:

4,971

China:1,443

Japan: 2,561

29.0%

51.5%

(100 million yen)
1,200
900

904

Operating Income (Consolidated)

1,003 1,033

75

75
50

300

25

0

0

2011

2012

1

71

Power System Equipment

Private sector

Others

44.7%

48.6%

0.8%

Life Cycle Engineering

Overseas

Asia

19.2%

27.8%

16.8%

14.3%

By Business
Segment

Public sector

By Customer

10.9%

Charged Beam
Equipment and Processing

Electric Power
company

21.8%

12.7%

2011

2012

Electric Industries, Ltd.

1963: Built the Maebashi works.
1968: Built new works at Kuze and Kujo.
1970: Started business of charged particle accelerators, and establishedNissin High Voltage.
(2003, NHV Corporation, took over the business of Nissin High Voltage.)

1980: Established Nissin Denki Shouji Co., Ltd. for the sale of electricalequipment and machinery.

1984: Established Nissin systems Co., Ltd. for the design and sales ofcomputer software.

1987: Established Nissin Electric (Thailand) Co., Ltd.
1991: Established Nissin Allis Electric Co., Ltd. in Taiwan.
1995: Established Wuxi Nissin Electric Co., Ltd. in China
1999: Established Nissin Ion Equipment Co., Ltd. within Kuze works forthe manufacture, installation, and servicing of ion implanter.

Charged Beam
Equipment andProcessing

Japan

82.4%

4 × Global Portfolio(FY)

Renewable Energy andEnvironment

3

By Production
Area

2Life Cycle Engineering

150

2001: Established Beijing Beikai Nissin Electric HV Switchgear Equipment
Co., Ltd. in China.
(2006, Changed the name to Beijing Hongda Nissin Electric Co., Ltd.)

2002: Established Nissin Electric Wuxi Co., Ltd. in China.
2005: Nippon ITF Inc., an affiliated company conducting thin-film coating
services, became a subsidiary of Nissin.

2005: Established Nissin Ion Equipment Co., Ltd., Shiga Plant/Plasma
Technology R&D Center.

2006: Established Nissin Advanced Coating (Dongguan) Co., Ltd. in China.
(2011, Changed the name to Nissin Advanced Techology Electric(Dongguan) Co., Ltd.)

2007: Established Nissin Advanced Coating Indo Co., Ltd.
2007: Became a consolidated subsidiary of Sumitomo Electric Industries, Ltd.
2010: Established Arteche Nissin, Sociedad Limitada in Spain.
2010: Established Nissin Ion Equipment USA, Inc.
2010: Established Nissin Hengtong Electric Co., Ltd. in China, acquiring

billion yen

Consolidated
operating income

Consolidated
ROA

12

8

billion yen% or above

Life Cycle
Engineering
Renewable Energy
and Environment

1,600

Charged Beam Equipment
and Processing
Power System Equipment

1,500

1,200

Numerical targets for fiscal 2015

Consolidated
net sales

Sales Composition by segment(100 million yen)

800
400

History
1910: Founded as Nissin Kogyo.
1917: Incorporated as Nissin Electric Co., Ltd.
1937: Began cooperation with Sumitomo Electric Industries, Ltd.
1945: Took over the capacitor production business of Sumitomo

Global expansion in 4 business segments
Power System
Equipment

2010

(FY)

77

Sales Composition (FY 2012; Consolidated)

Renewable Energy
and Environment

nature. To that end, we have added two new segments,
Renewable Energy and Environment, and Life Cycle Engineering,to our existing core businesses of Power System Equipment,
and Charged Beam Equipment and Processing. We will takea balanced approach to growing each of these four segments
and exert our best efforts to expand each segment globally.
By doing so, our aim will be to transform ourselves into a group ofcompanies that can achieve more stable and sustainable growth.

(100 million yen)
100

600

2010

The Nissin Electric Group is currently implementing initiatives
under a five-year medium-to-long-term business plan called“VISION 2015” that was launched in fiscal 2011. Under this plan,
we are working to achieve the numerical targets of 150 billion yen
in net sales and 12 billion yen in operating income by fiscal 2015,
marking a 150% increase respectively over the five-year period.
The main focus of this plan is to leverage our core technologies
to make our operations more multifaceted and more global in

Dividend
per share15

yen or more
per year

904
183
86
173

1,033
198
148
225

462

462

2010

2012

0

Ratio of overseas sales

34%

Approx.

2015

(FY)

50 %

Research and Development (R&D)
Making use of the R&D results that we have accumulated overa long period, we are working to create stable energy systems,
manufacture products that contribute to reductions in CO2emissions and develop next generation products applying ourcharged particle beam-oriented techniques. We are also
committed to developing new techniques on a daily basis so that
we can continue to grow as a global company that provides
environmental and energy
solutions while contributing
to society.

stock of local switchgear maker.

2011: Established Nissin Ion Hightech (Yangzhou) Co., Ltd. in China.
2011: Established NHV Accelerator Technologies Shanghai in China.

2001: Established Nissin Electric Wuxi Power Capacitor Co., Ltd. in China.
(2004, Changed the name to Nissin Electric (Wuxi) Co., Ltd.)

3

4

Group Companies and Sites in Japan

Delivering Satisfaction to Customers through Optimized
and Localized Production and Sales Structures
Manufacturing Sites in Japan
Head Office & Works (Ukyo-ku, Kyoto)(Nissin Electric Co., Ltd.)(NHV Corporation)

List of Group Companies
Kuze Works (Minami-ku, Kyoto)(Nissin Ion Equipment Co., Ltd.)(Nippon ITF Inc.)

Maebashi Works(Maebashi City, Gunma)

Overseas
Nissin Hengtong Electric Co., Ltd.
Nissin Advanced Coating (Shenyang) Co., Ltd.
Beijing Hongda Nissin Electric Co., Ltd.
Nissin Advanced Coating (Tianjin) Co., Ltd.
Nissin Ion Hightech (Yangzhou) Co., Ltd.
Nissin Electric (Wuxi) Co., Ltd.
Nissin Electric Wuxi Co., Ltd.
Nissin Allis Ion Equipment (Shanghai) Co., Ltd.

(Land area: 103,700m2)(Land area: 186,700m2)(Land area: 12,300m2)

NHV Accelerator Technologies Shanghai

Major products:

Major products:

Major products:

Nissin Advanced Technology Electric (Dongguan) Co., Ltd.

Switchgears, transformers, capacitor, power
conditioners for photovoltaic systems,
photovoltaic systems, reactors, voltage dip
compensators, supervisory control systems,
vehicle recognition system, electron-beamprocessing systems, electron-beamprocessing services, and thin-film coating
services

Gas insulated switchgears, circuit breakers,
instrument transformers (voltage
transformers, current transformers,
combined instrument transformers, etc.),
electron-beam processing services,and thin-film coating services

Ion implanters for semiconductors, ion
implanters for Flat Panel Displays (FPDs),
and thin-film coating services

Nissin Ion Korea Co., Ltd.

Arteche Nissin, Sociedad Limitada

Nissin Ion Equipment Co., Ltd.
Kujo Works (Minami-ku, Kyoto)

Shiga Plant / Plasma Technology R&D Center(Koka City, Shiga)(Land area: 7,000m2)(Land area: 53,500m2)

Major products:

Major products:

Switchgears and power conditioners forphotovoltaic systems

Ion implanters for semiconductors and ion
implanters for Flat Panel Displays (FPDs)

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

Nissin Advanced Coating
Indo Co., Ltd.

Nissin Electric (Thailand) Co., Ltd.

Service Sites

Nissin Ion Equipment Co., Ltd. Singapore BranchJapan
NHV Corporation

Nissin Ion Equipment USA, Inc.
Texas Customer Service Center

Nissin Ion Equipment Co., Ltd.
Nissin Electric Vietnam Co., Ltd.

We have established an extensive field service network staffedwith expert after-sales service personnel in order to determine

Nissin Allis Electric Co., Ltd.

the needs of our customers and provide the best solutions.

Nissin Allis Union Ion Equipment Co., Ltd.

This network spans from Hokkaido in the north to Okinawa
in the south, covering every region in Japan. Engineers from ourcore Kyoto, Maebashi, and Tokyo sites as well as partners fromeach region also closely work together to ensure an immediate

Nissin Systems Co., Ltd.
Nissin Business Promote Co., Ltd.
Nippon ITF Inc.
Nissin Denki Shouji Co., Ltd.

Chushikoku Sales Office(Hiroshima)
Seibu Sales Office(Kyoto and Osaka)

Nissin Pulse Electronics Co., Ltd.

*Core businesses of each company denotedby color.
Manufacturing companies
Service companies
Research laboratories

Tohoku Sales Office(coverage includes Hokkaido)

Power System Equipment
Charged Beam Equipment and Processing
Renewable Energy and Environment

response if any problem were to occur in one of our products.

Life Cycle Engineering

Maebashi Sales Office (Gunma)
Kyushu and Okinawa Sales Office(Kumamoto and Fukuoka)

Tobu Sales Office (Tokyo)

Chubu Sales Office (Nagoya)

5

6

Businesses and Products

Pursuing safety, stability, and efficiency as a leader
in the electrical infrastructure supporting industry and society
The Nissin Electric Group supplies a wide range of products and services that support
well-rounded social and industrial infrastructure, with an emphasis on power systemand energy equipment. We will constantly create products and technologies essential
for the world by leveraging our proprietary high voltage, vacuum, as well as monitoring
and control technologies developed over the course of our almost 100-year history.

Power System Equipment

9P

Charged Beam Equipment and Processing

10P

Renewable Energy and Environment

11PLife Cycle Engineering

Ion Implanter for FPD

Supervisory Control
System for Waterworks
Harmonic Restraint
Devices

12P

Electrical Railroad

Water and Sewerage

Ion Implanter for
Semiconductor

Smartphones

Tablet PC

Electron-beam
Processing System

AutomobileThin-film Coating
Equipment

Thin-film Coating
Service

Home
Home Energy
Management System

Power
plant

Renewable energy

Ultrahigh Voltage Substation

1100kV Gas Insulated
Voltage Transformer

800kV Capacitor
Voltage Transformer

Primary Substation

123kV Gas Insulated
Switchgear

Shunt Reactor

Factory

Expressway

66/77kV Harmonic
Filter Equipment

66kV Oil Filled
Transformer

66/77kV Compact Gas
Insulated Switchgear

77kV Gas Insulated
Transformer

Supervisory Control
System for Expressways

Photovoltaic System

22kV Compact Gas
Insulated Switchgear

Busduct

33kV Spot Network
Substation Equipment

Vehicle Recognition
SystemPower Conditioner for
Photovoltaic System

Power Capacitor

Voltage Dip
Compensator

7

Office Building

6.6kV Switchgear

Islanding Phenomenon
Detection System

8Charged Beam Equipment and Processing

Power System Equipment

Share of Total Sales

Ensuring safe and efficient supplyof electricity

Share of Total Sales

Contributing to higher performanceof state-of-the-art equipment

44.7%
Segment Overview

Segment Overview

Making contributions to society by ensuring a stable supply of electricity

Strengthening global product supply capabilities

This business segment focuses mainly on substation facilities which convert power
voltage to a level suitable for equipment. The equipment monitors and controls
the voltage level to ensure safe and efficient electric energy supply from a power
station. Our 66/77kV Gas Insulated Switchgear, which enjoys a large share of
the domestic market, demonstrates unparalleled compactness thanks to Nissin
Electric’s unique high-voltage technology. Power capacitors designed for use
by electric companies have been dominating an almost 100% domestic market
share recently, for which our company is called “Nissin for Power Capacitors.”
We have also established a production site in China and built up a solid track recordin the country. Going forward, we will expand our business footprint in the ASEAN region,
which is expected to see further economic growth and an influx of Japanese companies,and contribute to the development of local industry in the process.

In the charged beam equipment and processing business, we apply our long
nurtured high-voltage and charged particle technologies to manufacturing
equipment for cutting-edge products: various types of equipment used for
manufacturing semi-conductors and flat panel displays, electron beam processing
systems used for improving the quality of automobile tires and electric wires,and thin-film coating services designed to improve the performance of tools
and automobile parts. This business segment offers potential for future growth.
In fiscal 2012, we commenced operations at new manufacturing sites built
in China for electron-beam processing systems and for ion implanters forsemiconductors and for Flat Panel Displays (FPDs). Going forward, this segment
will focus on delivering a wider range of services to customers in China andthe ASEAN region as well as on the development of new thin-film coating applications.

Net Sales(100 million yen)
500

462

460

462

400
300
200
100
0

2010

2011

2012

(FY)

Net Sales(100 million yen)
300

251

250
200

225

173

150
100
50
0

2010

2011

2012

(FY)

Maximizing space in substations and reducing energy usage
during the manufacturing stage

World’s first equipment compliant with sixth generation
glass substrates (1,500mm × 1,800mm)

Gas insulated switchgears switch power sources at substations and break circuitin the event of an accident or emergency.
By using sulfur hexafluoride (SF 6) gas as an insulator, we are able to enclose
high-voltage power equipment in compact and airtight cases, reducing the overall
size of this power system equipment.
Smaller equipment means that it can now be installed in limited spaces,
which not only meets the needs of our customers, but also reduces the amountof materials and energy used during the manufacturing process. In turn, this also
reduces CO2 emissions.

Our ion implanter for small/medium high-definition Flat Panel Displays (FPDs) isa critical piece of manufacturing equipment for small/medium high-definition
displays used in smartphones and other high-end mobile devices.
The electrical properties of semiconductor devices and FPDs are brought
to life after a mixture of gases including phosphorous and boron is transformed
into plasma, from which ion beams are extracted and accelerated using
direct-current voltage and then injected into a wafer or glass substrate under
careful control.

66/77kV Compact Gas Insulated Switchgear

9

21.8%

Ion Implanter for FPD

Capacitor Voltage Transformer(CVT)Power Capacitor

Shunt Reactor

Ion Implanter for Semiconductor

Electron-Beam Processing System

Thin-film Coating Service

Instrument Transformers are installedto accurately convert high voltage and large
currents into the applicable voltage
and current for electric instruments or relays.

Power capacitors are placed in parallelwith loads for power factor corrections or
voltage regulations in power transmission
and distribution systems. Power capacitors
help to promote the effective use of energy
by improving the quality and reliability of
power systems.

Shunt reactors are a type of phase modifying
equipment that functions in the exact opposite
as a power capacitor, consuming phaseadvancing reactive power. Shunt reactors
also help to promote the effective use ofenergy by improving quality and reliability of
power systems.

An ion implanter for semiconductors isan essential piece of manufacturing
equipment used to make semiconductor
devices found in computers, mobile devices,
and a host of other digital products. They
use the same technologies as an ion
implanter for FPDs.

An electron-beam processing system isused to manufacture heat resistant coatedelectric wires, heat-shrinkable tubing,polyethylene foam, and automobile tires.
Electron-beam processing systems arealso being widely used in an increasing
number of other applications, such as forsterilization of medical equipment, and inenvironmental protection.

Thin-film coating services significantly
improves the life and performance ofmachine tools, metallic molds, and various
machinery parts by providing superior
surface smoothness, high temperature
endurance, and wear resistance. These
services are helping industry in a variety ofways, including extending product life,and helping to reduce the use of materials.

10Renewable Energy and Environment

Life Cycle Engineering

Share of Total Sales

Coping with global social needs

Share of Total Sales

Providing support at every stage ofthe equipment life cycle for customers

19.2%

14.3%
Segment Overview

Segment Overview

Contributing to the greater popularization of photovoltaic systems

Supporting customer facilities in a host of stages

This business segment addresses social needs identified on a global scale, suchas use of renewable energy sources, subsequent need for more stable electric
power systems, electricity infrastructure improvement and shortage of water
resources. In the renewable energy business, we provide power conditioners
and photovoltaic generation systems, as well as products used for construction of
next-generation power transmission and distribution systems (Smart Grid).
In the environment business, we offer electrical equipment and energy management
system (EMS) related products for water treatment facilities.
In fiscal 2012, we expanded our lineup of photovoltaic system products,
centered on power conditions, given rising awareness toward renewable energy
solutions. Going forward, we will continue to expand the number of products weoffer not only to Japan, but also to markets around the world.

Over the entire life cycle of Nissin Electric Group products delivered to ourcustomers, we provide comprehensive support services, including installation,
adjustment, inspection and maintenance. Our product life cycle management
solutions include product life assessment by inspecting the equipment
and analyzing measurement data, product life cycle extension by monitoring
operational status and taking necessary measures, and management ofoperations.
We focus on inspections and repair work for aging equipment to help
customers ensure safe operations by prolonging service life, and also propose
rational replacement schedules. Going forward, we will look to expand our life
cycle engineering business and further enhance customer satisfaction by
developing new services.

Net Sales

148(100 million yen)
150
120
90

85

99

60
30
0

2010

2011

2012

(FY)

184

193

198

2011

2012

150

100

50

0

2010

(FY)

Leading conversion efficiency in power conditioners
for photovoltaic systems

Prolonging service life and proposing repair and replacement
schedules through facility inspections

A power conditioner converts direct current electricity produced from a photovoltaic
system into alternating current electricity.
Our SOLARPACK power conditioner, which achieved a conversion efficiency ofgreater than 95% (including gas insulated transformer), can reduce conversion loss
and maximize the use of generated electricity. Using a parallel running system,
our power conditioners can also be used in large, megawatt=class photovoltaic
arrays as well.

We propose the best ways to prolong the service life of equipment as well as
repair and replacement schedules after carefully checking the conditions of
substation equipment currently in use, and for any abnormalities.
We provide services under four fundamental principles: (1) always givepriority to safety and quality; (2) earn customer trust and peace of mind; (3) act
as a sound life cycle consultant; and (4) develop and grow together withthe customer.

Power Conditioner for Photovoltaic System

11

Net Sales(100 million yen)
200

Facility assessment

Photovoltaic System

Supervisory Control System for Waterworks

Supervisory Control System for Expressways

Equipment installation

On-site testing

Maintenance

A photovoltaic system consists ofa photovoltaic module, powerconditioner,and instrumentation/display formonitoring/indicating generationand operation statuses.

In this system, operating data fromelectrical substation equipment, pumps
and other equipment in a water treatment
facility are put together to streamline
the supervisory and control of the entire facility.
This system can also support rainwatermeasures and operations based on water
demand forecasts, as well as provide
Internet integrated supervisory control.

In this system, operating data from various
expressway infrastructure, including power
distribution equipment, power systemequipment, lighting, tunnel ventilation fans,and road signboards are put together toclosely supervise and control roadconditions to support expressway safety.

We select the safest possible way to deliver
the equipment from the planning stage, withspecial consideration given to site conditions
and installation cost. When using a large
trailer, we carefully study road width andburied objects around the site to ensurethat none of the customer’s equipment or
roads are damaged during the process.

We perform on-site testing that includes
operation check and interlock test to
confirm that the system has been built tocustomer specifications.

We perform regularly scheduled
maintenance to ensure that our customers
can use their equipment safely for extended
periods of time. This maintenance isconducted based on when the equipment
was first manufactured and include checking
for abnormalities, cleaning, and part changes.

12Special Feature

Smart Power Supply Systems

SPSS

Balancing Electricity
Conservation with
® a Stable Supply of PowerSPSS developed by combining our proprietary
monitoring technology with visualizationand control of electricity usage through an EMS

Smart Power Supply Systems

Japan has been plagued with chronic power shortages following the Great East Japan Earthquake,and this experience is heightening demand for the utilization of renewable energy, electricity
conservation, and solutions for avoiding risks associated with power outages.
In order to satisfy these needs, the Nissin Electric Group has developed a Smart Power Supply
System® (SPSS) that simultaneously balances electricity conservation with a stable power supply forcustomers with extra-high-voltage power system equipment. Today, verification is currently taking
place at our head office and Maebashi works aimed at the eventual commercialization of this solution.

The key to achieving the SPSS solution lies in the visualization and control of electricity
usage through an Energy Management System (EMS). An EMS is a system that controls
and optimizes energy usage in buildings and factories using information communication
technology. The Nissin Electric Group not only aims to optimize electricity use, but also
to visualize the aging conditions of equipment, and to reduce risks associated withpower outages through the use of power equipment monitoring technologies.

Conserving energy with an optimum mix of power sources
One of the features of SPSS is that it provides an optimum mix of power sources.
Power can be used more efficiently by controlling the mix of power sources, including
grid power provided by power companies, and the power generated by a customer’s
own systems. Equipment owned by customers may include a photovoltaic system
which generates power during the day time, a privately-owned generator, or power
storage unit for emergencies. Our aim is to create the most optimum mix of powersources to conserve energy as well as supply power during a power outage.

Conserve
energyFurther popularize energy
efficient equipment

Preventing power outages through monitoring and inspecting
power equipment

Information

EnergyManagement System(EMS)

Visualization(promote energy
conservation efforts)

Power

Power

Information/
Control(ICT)

CreateenergyCogeneration
systemInformation

Information

Further popularize wind
power and photovoltaic
systems

SPSS verification currently underway in-house

Store
energyStore and stabilize power
supply using batteries

Power+
Grid connection
technologies

Equipment status monitoring is another unique feature of SPSS. With factories
and buildings becoming more computerized in recent years, whenever a problem
occurs with power equipment, it could lead to suspended factory production or
impact social activities. The deterioration of power equipment that has been in use
over a long period of time increases the risk for sudden accidents or failures tooccur. Through the use of our proprietary monitoring technology, the Nissin ElectricGroup’s SPSS aims to prevent power outages due to accidents, as well as help
customers formulate their Business Continuity Plan (BCP).

Battery energy storage
systemThe EMS essential for our SPSS solution is made possible with equipment thatgenerates, stores, and conserves energy by utilizing our strengths in systemtechnologies and power quality enhancement technologies. We are currently
conducting verification for the SPSS solution by connecting this equipmentwith our on-site systems.
We installed a 110kW photovoltaic system at the company head office and began
the visualization of electric power load using our own EMS in fiscal 2011. In fiscal 2012,
we began collecting information on the status of power equipment deterioration
through the installation of a supervisory system for factory power equipment.
Furthermore, a 550kW photovoltaic system was installed at the Maebashi works.
In fiscal 2013, we plan on starting the verification of operations using an optimum
mix of power sources with a cogeneration system, and battery energy storage
system installed at the Maebashi works.
We hope to compile examples following the verification process, and eventuallyprovide new value to our customers who receive power through extra-high voltage
by enabling them to achieve a balance between stable power supply and energy
conservation.

Monitor andinspect substationequipment

Photovoltaic
systemYusaku Ijiri

13

Solution System Division
System Planning & Development Dept.
Chief Research Engineer

Shuzo Arakawa
Engineering Division
General Manager

Motonobu Fujiwara
Solution System Division
Development Dept.
Deputy General Manager

14

Our Commitment to CSR

Pursuing a systematic approach to CSR activities with a focus
on the autonomous involvement of each and every employee
Targets and Results of
CSR Activities

Corporate Principles and Five Trusts
Combining our fundamental approach andunwavering commitment to business.

Domain / Target

Since its founding in 1910, the Nissin Electric Group has constantly refined its originaltechnologies and delivered high quality products and services to its customers.
Through this, we have earned the trust of customers and continually strived to makecontributions to the fundamental needs of society and industry.
The Corporate Principles of the Nissin Electric Group and the Five Trusts, bothdrawn up in November 2005, represent the combination of our fundamental approachand unwavering commitment to business.

Customers
Enhancesatisfaction

Page

Improved accuracy of quality data, held intermediate course on quality control andimproved quality through small group activities

Customer satisfaction
enhancement activities

Distributed e-mail newsletter “Techno-Letter,” set up toll free hotline 24-hours a day,promoted life cycle engineering, and hosted the customer training at the Techno Academy

Optimize diverse workforce

Redesigned job rotation system, hosted plant tours for persons with disabilities,
and recruited for employees outside of Japan

Promote educational and training
opportunities that support personal
and professional growthOffered courses on building design capabilities, core technologies,
and building fieldwork capabilities, held training programs for mid-career hires andon human rights, and expanded human resource development opportunities

Encourage a work-life balance

Expanded and made it easier to use the work-life balance support program,
held company-wide no overtime days

Strengthen communication

Conducted employee satisfaction survey, shared information using the company
newsletter, and organized onsite science classes for elementary school students led
by a team of junior employees

Promote safety andhealth awarenessImplemented safety and health activities in accordance with “Safety First” Guidelines,
and promoted mental health care through mental stress exams, self-care training,and other means

19 P

Promote co-existence andco-prosperity

Adapted to global business trends and supported quality control improvementsof suppliers

20 P

Proactive information disclosure

Disclosed information in line with Medium-to-Long-Term Business Plan “VISION 2015”
and began publishing a fact book on the corporate website

Support developmentof the next generation

Dispatched speakers to the Kyoto Industrial Association,organized onsite science classes for elementary school students, andmade scholarship donations to an elementary school in Hue, Vietnam

Support sports andcultural activities

Sponsored Kyoto Sanga F.C. of the J-League (professional soccer) andthe Kyoto Marathon, maintained Junichiro Tanizaki’s Sekison-tei heritage residence,and hosted site visits by researchers

Sound compliance practices

Requested Area Compliance Managers to perform checks, conduct inspections,and offer guidance, held compliance training sessions and educated employees
through the company newsletter, and operated the Help Line DeskSound risk management practices

Developed a safety check contact list, revised risk management system,
and built and modified Business Continuity Plan (BCP)

Sound information security
measures

Revised guidelines for the company and its domestic affiliates,and began preparations for rolling this out at overseas affiliates

Develop and supply environmentallyconscious products

Expanded lineup of power conditioners for photovoltaic systems andpromoted the diesel particulate filter business

Implement activities to reducecarbon footprint

Reduced specific energy consumption by 25% compared to fiscal 2010
by installing energy efficient equipment and conserving electricity

Implement green procurement

Performed inspections on products subject to REACH and prepared implementationof hexavalent chromium-free product initiative

Support environmental protection
activities

Supported the activities of the Kyoto Modelforest Association andtook part in clean-up activities held along rivers near our business sites

17 P

Employees

Mission – Forge a bright future for both people and technology

Foster andenhance job
satisfaction

We take the following Five Trusts as the point of origin for our activities. Through these
Trusts, we strive to promote the growth of the company and foster the personal
development of its employees.

Partners

Enhancesatisfaction

Customer Trust

Shareholders
Enhancesatisfaction

Partner Trust

Societal Trust

Shareholder Trust

Basic Policies
The Nissin Electric Group’s Basic Policies for CSR Activities(1) Accomplish our Mission, “Forge a bright future for both people and technology,”
and the Company Code of Conduct, “Integrity, Trust and Long-term Relationships.”(2) Empower each and every employee to get involved willingly and steadily in CSR
activities, based on the approach above.

Domains of CSR Activities
Trust
Corporate
Management
The Environment

15

Earn the trust of customers, shareholders, society and partners,
and employee mutual trust
Pursue fair and transparent corporate management
Take the initiative in protecting the environment throughour core businesses

Society

Help make local
communities abetter place

Corporate
Management

Five
TrustsThe Environment

Employee
Mutual Trust

18 P

Trust

Company Code of Conduct – Integrity, Trust andLong-term Relationships

Fair andTransparent
Corporate
Management

Environmental
Initiatives

Fiscal 2012 results

Quality improvement activities

Corporate Principles of the Nissin Electric Group
With the aim of realizing a sustainable society, gentle to humans and the environment,
Nissin Electric develops original technology to meet the fundamental needs ofsociety and industry.

Core focus areas

21 P

22 P

23 P

Glossary• Area Compliance Manager: A person from each workplace who is in charge of ensuring sound compliance practices are followed.
A division general manager or president of a subsidiary of affiliate is nominated for Area Compliance Manager.
• Business Continuity Plan (BCP): A plan for ensuring the continuity and quick restoration of business operations during an emergency.

16

Providing customer-centric solutions to remain a company
that is useful to and trusted by its customers

Customer Trust

Employee Mutual Trust

Using a cooperative framework with all the group’s strength to ensure
employees, which support our growth and are our direct contact with society,can live a stable life and find purpose through their work

Kumi Sawada

Jun Hayasaka

Nissin Electric Co., Ltd.
Customer Service Business Unit
Construction Division Chief

17

Nissin Electric Co., Ltd.
Production Engineering Department
Infrastructure &Environment Control GroupPower conditioner for photovoltaic system

Life Cycle Engineering

Optimizing our diverse workforce

Delivering a trusted support system that includes onsite testing
after delivery and maintenance inspections

WING-NET – a network for female employees led
by female employees

Photovoltaic systems are garnering much attention as interest grows in renewableenergy solutions. In addition, there has been a significant increase in the numberof systems being built since Japan began its feed-in tariff program in July 2012.
The Nissin Electric Group has augmented its production system, and is shipping
more and more products to accommodate the sharp increase in demand for power
conditioners that form the heart of any photovoltaic system. After the installation of ourpower conditioners, our testing engineers check to see if the power conditioner meetsits design specifications and set up various settings including protective functions before
the final handover is made to the customer.
The Nissin Electric Group also provides an extensive offering of inspections
for photovoltaic systems after they are fully operational. Based on this, we propose
and perform regularly scheduled maintenance inspections for our customers. We have alsoestablished a nationwide service network (see page 5) to respond to unexpected troubles.

In 2008, we established WING-NET based on a suggestion from female employees.
Since less than 20% of our workforce is female, we felt it was important to establish
a network where our female employees could engage one another regardless ofworkplace or job area. Today, we plan and hold WING-NET networking events at fivelocations across Japan. In fiscal 2012, the number of members increased from 18
to 22, and we organized lectures by female role models, received feedback about
the workplace environment, and held various workshops on our products. Members
have noted that all of the activities were very worthwhile, even though they involved
a great deal of effort. This has created a positive cycle where members are constantly
looking forward to the next activity to organize.

Site test being made on a power conditioner

GLOBAL
Enhancing customers satisfaction

Customer engagement

GlossaryWork-life balance

Fostering job satisfaction

Glossary

Providing products and services that meet
Japan’s rigorous quality requirements at
all of our production sites

Toll free 24-hour emergency hotline
for customers• Testing engineer:
A worker that travels to a customer’s site to checkto see if an installed product is working correctly
according to the customer’s specifications.

Acquired right to use the next-generation
Kurumin certification markEstablished Human Resource Development
Department to support the professional
and personal growth of employees

We actively train employees and make further
improvements to quality through Kaizen activities
at our overseas subsidiaries in order to ensurethat all of our production sites maintain the same
rigorous quality requirements as in Japan.
Our goal is to deliver satisfaction, peace of mind,
and reliability to our customers through quality
products and after-sales services.

We accept enquiries from our customers on
any of our products over a dedicated toll free
24-hour hotline. In fiscal 2012, we set up
a special team to handle a broader scope oftechnical enquiries following a sharp increasein our shipments of power conditioners forphotovoltaic systems.

We actively help our employees to balance
their professional and family lives to achieve
the optimal work-life balance. In recognition ofthese efforts, Nissin Electric has been certified
by the Ministry of Health, Labour and Welfarein August 2012 as a business that helps its
employees balance work and family lives, after
having met the requirements under the Act for
Measures to Support the Development of
the Next Generation.

We established the Human Resource Development
Department in November 2012 based on therecognition that the growth of our employees equates
to the growth of the company. This department isincreasing employee development opportunities
and helping to accelerate their growth throughtraining programs that focus on building essential
workplace and job skills, as well as on passing on
and cultivating technical knowledge and skills.

• Act for Measures to Support the Developmentof the Next Generation:
A Japanese law enacted in 2005
in order to develop an environment
where children can be born and raised in a safe andhealthy manner as the future leaders of society.

Quality inspection taking place at Beijing Hongda
Nissin Electric Co., Ltd.

PCS support center

The Kurumin; A mark certifying corporate support
for parenting

Training session for new hires

Visit to sites installed with Nissin Electric products• Role model:
A person who serves as an example
and whose behavior is emulated by others

18

Striving to accommodate our business partners in a fair and honest manner,recognizing that growing together with our business partners will help enhancecustomer value and our competitiveness

Partner Trust

Tomoko Hori
Nissin Electric Co., Ltd.
Procurement Department
Chief

Hiroyuki Ubukata
Nissin Electric Vietnam Co., Ltd.
Senior General Manager

Building trust with business partners

Shareholder Trust

Maintaining an appropriate dividend in line with earnings,
enhancing corporate value over the mid to long term,and strengthening mutual engagement with shareholders

Fumihiko Imanishi

Satoshi Koshiro

Imanisi Tekkousho Co., Ltd.
President

Nissin Electric Co., Ltd.
Legal department

A more open general shareholders’ meeting

GLOBAL

Expanding internationally and prospering together

Promoting direct engagement with shareholders

As markets become more global, we now look at Japanese and overseas procurement
as one and the same thing, and are building ongoing mutual trust with our business
partners by expanding together and prospering together internationally.
Our subsidiaries in Thailand and Vietnam focus on the contract fabrication of
metal components mainly ordered by Japanese companies. We help our business
partners outsource a part of the production process to our overseas subsidiaries
to combine cost competiveness with a superior standard of quality, which in turnresults in a low cost, yet high quality component. In this sense, we are building
win-win relationships through our efforts to produce parts and procure materials fromthe most ideal locations.

Nissin Electric considers general shareholders’ meetings as an ideal platform for direct
engagement with its shareholders, and has implemented a variety of measures geared
toward these meetings to ensure that shareholders can better understand the Nissin
Electric Group. First, we schedule our general shareholders’ meetings to avoid dates
when many other companies hold their meetings to ensure more of our shareholders
can attend. We also use a large screen, and present our earnings and management
policy in an easy-to-understand format. At our June 2012 general shareholders’ meeting,
we changed the layout of the venue to provide more space for shareholders to sit,
added LCD monitors on each side of the venue and small screens in the back tocomplement the large screen at front to make the presentations easier to see. Since
our shareholders’ meetings are held at our head office and works, we decided to offer
a plant tour after the end of the meeting for shareholders in attendance. In June 2012,
this tour visited our new capacitor plant that came on line in the previous fiscal year
and the Kyoto EB* Center, which provides electron-beam processing services.

The production scene at Nissin Electric Vietnam
Co., Ltd.

Plant tour held after the general shareholders’ meeting* EB: Electron Beam
CSR Procurement/
Green Procurement

Relationship of trust with the Nissin
Electric Cooperative Association

Collaboration in the supply chain

A partnership more than 60 years
in the making

We are working to fulfill our responsibilities tosociety and help protect the environment in allof our business activities, from materials
procurement to manufacturing and sales.
Our business partners participate in briefings
on our policies and also complete surveys on
specific indicators.

Since its humble beginnings in 1951 during
Japan’s post-war reconstruction, the Nissin
Electric Cooperative Association has grown intoa group of companies with technologies that canfully satisfy the diverse needs of our customers
today. Going forward, we stand committed tofurther refining our mutual relationship of trust.

Glossary

Dividend policy

Pertinent information disclosure• CSR Procurement/Green Procurement:
A method of giving priority to the procurementof products and services that have lessof an impact on the environment or that are freeof or use less hazardous substances.

Returning profits to shareholders using
a stable and appropriate dividend

We are publishing “FACT BOOK”
on our corporate website

Nissin Electric recognizes one of its mostimportant management tasks is to produce
appropriate shareholder return, while also fulfilling
its responsibility to shareholders to continuallyenhance corporate value over the mid to longterm. Our commitment is to provide a stabledividend, which is determined based on our
proposed payout ratio and amount of retained
earnings commensurate with earnings results
and future outlooks.

We began publishing Fact Book about Nissin
Electric on our corporate website in May 2012.
This Fact Book contains a summary of financial
and earnings results of the past few years.
It conveys information about the company toa wider audience in a more accurate and prompt
manner, which is beneficial to making an informed
investment decision.

Information
disclosure/Dialogue• Shareholder plant tours (held annually)• Investor Relations section of website(as needed)• Publication of To Our Shareholders
in Japanese (biannually)• Publication of Annual Report (annually)

Payout ratio
(%)
50

25

21.2

26.0

32.0

2011

2012

0

2010

19

Briefing on our procurement policy for business
partners

General Meeting of the Nissin Electric Cooperative
Association(FY)

A screen shot of our online Fact Book

20

Societal Trust

Leveraging our expertise as an electrical equipment provider, we take partin a host of community fellowship activities inside and outside of Japanto help develop the next generation and co-exist with the local community

Initiatives for Fair and Transparent
Corporate Management

Committed to strict compliance with all laws andregulations as well as to enhanced corporate governanceRyoko Ota

Masaki Nozawa

Nissin Electric Co., Ltd.
Corporate Administration & Human Resources Department
Manager(in charge of Women’s Help Line Desk)

Nissin Electric Co., Ltd.
CB & GIS Div.
Production Engineering GroupKouzou Asako

Nissin Electric Co., Ltd.
Corporate Administration & Human Resources Department
Chief Senior Staff(in charge of human rights training and Help Line Desk)

Supporting youth development

Compliance

Expanding our initiatives by organizing onsite science classes
in Maebashi

Expanding Help Line Desk and Training Programs

We began organizing onsite science classes at local elementary schools in fiscal 2010
in order to increase the number of elementary school students interested in science byutilizing our technologies. In fiscal 2012, we organized classes near Maebashi works,
in addition to those held in the communities near our head office and works in Kyoto.
These onsite science classes are held for fourth graders that already learned aboutphotovoltaic power at school and involve having everyone test drive a small solar car
designed and assembled by our employees. During the class, students learn about
how a solar car works and about its photovoltaic panels, battery and motor. The students
are always impressed, and think it’s “cool,” that the car runs on the power of the sun.
We believe that these onsite science classes provide an opportunity for children to spark
their interest in science through experiences, while also imparting the importance of using
and storing photovoltaic and other renewable energy.

In 2004, the Nissin Electric Group launched a Help Line Desk for employee comments
and consultations regarding compliance issues in order to promote early detection as
well as voluntary correction and resolution of compliance issues. Since 2007, we havestrived to further augment this program by launching the Women’s Help Line Desk
staffed with dedicated female consultants, making it more approachable for female
employees to seek consultation concerning sexual harassment.
Moreover, our Human Rights Promotion Committee works company-wide to
conduct ongoing human rights education and training activities. In addition to training
for new managers and new hires, we also provide training for all employees on a regularbasis. In fiscal 2012, human rights training was held on the importance of being awareof human rights issues in the workplace as well as on the publication released by
the Ministry of Health, Labour and Welfare called “Proposals for Prevention/Settlementof Workplace Power Harassment.”

Human rights training session held in fiscal 2012

Test driving a solar car during a onsite science class

GLOBAL
Enhanced scholarship program

Community fellowship activities

Glossary

CSR Promotion Structure

Risk Management

Glossary

Playing a role in the partnership between
Kyoto and Hue, Vietnam

Ongoing involvement in clean-up
activities along the Katsuragawa River
watershed in Kyoto

Promoting Group-wide activities
centered on the CSR Promotion
Committee

Strengthening the Risk Management
Committee and implementing training
drills and system improvements

Nissin Electric has donated scholarship funds toan Elementary School in Hue, Vietnam, through
The Japanese Association of Supporting
Streetchildren’s Home in Vietnam (Representative:
Michio Koyama) since 2007. In 2012, the City of
Kyoto and the City of Hue in Vietnam concluded
a Partner City Agreement. As a Kyoto-based
company, we stand committed to offering further
assistance to Vietnam going forward.

The Katsuragawa River Clean Campaign
features community-wide activities involving local
governments, companies, neighborhood
associations, schools and other organizations.
Nissin Electric has participated in these activities
every year since 2009. This year, a team of 26
comprising Nissin Electric Group employees
and their families took part in the clean-up effort
on February 17, 2013 despite the cold.

• Partner City Agreement:
An agreement between two cities
for fostering private sector exchange mainlyin the fields of culture and the arts,
academic research and education, and business.

The CSR Promotion Committee is a company-wideorganization that engages in activities while
exchanging information with overseas subsidiaries.
The results of the committee’s initiatives arereported to senior management, including boardof managing directors meetings, for appropriate
directions and feedback enabling the committee
to conduct ongoing CSR activities.

The Risk Management Committee is a companywide organization that serves to prevent risks
before they occur and to implement measuresfor prompt and appropriate response in cases of
emergency. The committee is involved in improving
the emergency contact system for verifying thesafety of employees and their families during large
scale disasters, as well as conducting periodic
safety training drills.

• Compliance:
The observance of all types ofrules including laws and regulations as well associal norms in all business activities.
The adherence to laws and business ethics.

Nissin Electric Group’s CSR Promotion Structure
President / Board ofManaging Directors
Directions /Feedback

Targets /Results
reportCustomers / Shareholders /Society / Partners(Stakeholders)Publichearing

Public disclosure

CSR Promotion Committee
Support / Feedback /Training

Secretariat

Results report / Proposals

Departments / Subsidiaries / Employees

21

Partner City Agreement Signing Ceremony between
Kyoto and Hue, Vietnam

Clean-up activity along the Katsuragawa River

Safety information communication training drill

22

Environmental Initiatives

Committed to energy conservation and power saving through the developmentof environmentally concious products and services and the utilization of
the environmental management system

Electricity conservation initiatives

Efficiently reducing power usage through visualizationand load control
The central monitoring system located within our head office works includes an energy
management system (EMS).
This system enables the visualization of power load inside the precincts (forthe works and business offices) as well as power consumption of each works as a whole,
shedding light on the pattern of power load, thereby making it possible to estimate
the effect of energy conservation in the buildings.
A page with easy-to-follow commentary on the relationship between contract
demand and actual demand (instantaneous maximum power) as well as a powermonitoring screen showing the status of power usage in the works is published on
our intranet for all employees to access, enabling appropriate voluntary efforts to help
reduce peak energy loads. As a result, the peak power usage at the head office
and works in fiscal 2012 was reduced by 20% in summer and 12% in winter whencompared to fiscal 2010.
The result of these initiatives will be further applied in the Smart Power Supply
Systems (SPSS) that is currently under development at the Maebashi works.

Naoyuki Oku

Nissin Electric Co., Ltd.
Capacitor Division
Production Engineering Group

Developing environmentally concious productsCompact power capacitor for energy efficient operations
A power capacitor is an essential piece of an energy conservation system. They arewidely used in power factor improvement as well as phase modification for alternate
current systems, including those for general consumers, and can be applied fromlow-voltage to extra-high voltage circuits. Power capacitors have a long history thatcan be traced back to 1931 when the world’s first prototype, an oil-filled (OF) capacitor(6kV/7kvar), was successfully made using OF cable technology. The first commercializedversion (10kV/10kvar) was launched two years later in 1933.
The Nissin Electric Group strives to make capacitors, which have more than 80
years of history, more compact and smaller loss by developing dielectric materials
and improving their manufacturing techniques. In recognition of its efforts, the Nissin
Electric Co., Ltd. was honored with the 6th One Step on Electro-Technology by the Instituteof Electrical Engineers of Japan. Going forward, we aim to pursue further productdevelopment and improvements.

GLOBAL
Overseas Initiatives

Management of hazardous chemical
substances

Air pollutant reduction measures
implemented by subsidiary in China

Initiatives to recycle volatile organic
compounds (VOC)

As part of its ISO14001 activities, Nissin Electric(Wuxi) Co., Ltd. in China installed a fume purification
system inside its painting facility to filter out fumes
generated during the application process in orderto reduce air pollution. Going forward, we willcontinue to conduct business activities bothin Japan and abroad with a greater awarenessof the environment.

Isopropyl alcohol (IPA) once accounted forover 80% of the volatile organic compounds
purchased by the Kuze and Umezu Worksof Nippon ITF Inc. By reutilizing used IPA at Kuze
works special wash line, and at Umezu Works
regular wash line, the company has largely
reduced the amount of VOCs it purchases,
and improved the recycling rate.

Displayed power capacitors at showroom

Glossary• Volatile organic compounds (VOC):
A collective term for organic chemical compounds
that evaporate easily under normal atmosphericconditions of temperature and pressure.
• One Step on Electro-Technology:
An award program established in 2008
in commemoration of the 120th anniversaryof the Instituteof Electrical Engineersof Japan that recognizes items, places, endeavors,
and people that possess historical value
to electrical engineering in Japan.

GLOBAL
Minimizing and recycling packaging
materials

Demand management screen

Initiatives to reduce waste

Biodiversity initiatives

Rationalizing packaging materials throughcollaboration between subsidiaries

Recognized by Kyoto as a works
with excellence in 3R activities andreducing waste

Formulating guidelines to protect
ecosystems

The Instrument Transformer Div., together with
Nissin Electric Wuxi Co., Ltd. in China (NEW),has begun using dedicated containers for
assembly parts imported from NEW. This initiative
has achieved a 70% reduction in packaging
materials used to protect parts, and a 25%
reduction in the number of containers needed.
Prior to implementing the change,
consolidated containers were used, which required
transshipment at the port and wooden crate
packaging for covering the entire shipment ofparts. By switching to dedicated containers,
the use of wooden crates was eliminated.
In addition, by disassembling a portion of the parts
before packing in hopes of reducing spaceneeded for each package, we were able toimprove the load capacity of each container.
Moreover, by switching the wooden base toa plywood material, we were able to increase
the strength and simplify the structure, thereby
reducing the amount of materials used. In addition,
we successfully reduced waste generated
by using the water-proof cover for transport
for delivery as well (dual use).

The City of Kyoto started the Works with Excellent
Waste Reduction and 3R Initiatives programin fiscal 2012 to recognize major business
operators for their proactive efforts toward recycling
and reducing industrial waste.
Of the 2,200 eligible businesses in Kyoto,
53 businesses submitted an application, while
44 businesses received the recognition.
Our company’s reduction and recycling activities
were recognized for their excellence and received
an official recognition.
A presentation
ceremony was heldon October 1, where
we received
a certificate andsticker of recognition.
The sticker indicatinga seal of approval
is displayed at thefront entrance ofthe head office.

In recent years, the gradual loss of biodiversity
due to changes seen in the global environment
brings concerns about the impacts on humanexistence.
For this reason, the Nissin Electric Grouphas formulated a Biodiversity Activity Guideline
to promote biodiversity conservation efforts
through our business activities aimed at protecting
ecosystems.
As part of this initiative, we have agreed tocooperate with Kyoto Modelforest Associationin promoting efforts among employees and urging
employees to take part in their initiatives.

Before improvement

Certificate of Recognition

After improvement

Employees participating in Ashiu no moripreservation activity• Demand:Average amount of power use every 30 minutes

Sticker of Approval

Rationalization of packaging materials

23

Installation of fume purification system inside
painting facility

Filtering of used IPA

24

Environmental Initiatives

Committed to energy conservation and power saving through the developmentof environmentally concious products and services and the utilization of
the environmental management system

Inputs and Outputs for Fiscal 2012
Total energy input

Environmental policy
In accordance with our ISO14001-compliant environmental management system, we will strive to continually
reduce our environmental impacts and improve our systems as well as prevent environmental pollution.
We will assess the impact that all of our business activities have on the environment, stipulate
environmental objectives and targets, and regularly revise these objectives and targets. We will comply withall environmental laws, regulations, agreements and other accepted requirements, as well as manage
our compliance with each using a voluntary set of standards.
We will prioritize the next activities that aim to reduce environmental impacts.
1. Create environmentally conscious products
Develop products that are considerate of the environment
throughout their entire life cycle, from product design tousage and disposal.
2. Mitigation of climate change(1) Energy conservation
Reduce energy usage and CO2 emissions through energy
conservation activities.
(2) Control SF6 emissions into the atmosphere
Control the emission of electrical insulating gas (SF6)
into the atmosphere. (Recovering a majority of SF 6
will have a greater effect on CO2 reduction owing toequipment downsizing.)

3. Discharge limitation(1) Resource conservation and recycling
Promote conservation of resources, as well as the reduction
and recycling of waste for effective use of resources.
(2) Prevent environmental pollution
Prevent environmental pollution due to emission andleakage of volatile organic compounds (VOCs), effluent,oil, and chemical substances.

I
N
P
U
T

Water resource input

385TJ

Groundwater

104,385 m3(TJ)

Clean water500

129,532 m3
Total 233,917 m3

250

Development / Manufacturing / Inspection

0

2010

CO2

O
U
T
P
U
T

2011

2012

Energy source
CO2 emissions(F Y)

SF6 emissions

Totalamountof wasteSF6 17,237 t-CO2

18,225 t-CO2

2,620 t(t-CO2)(t )20,00024,0003,000

15,00018,00010,00012,000

5,000

6,000

(F Y)

Total waterdrainage

224,001m

3

Recycling amount

2,500
2,000
1,500
50
0

0

2010 2011 2012

2,444 t 25.0 t

Total amount of waste
Amount of landfill waste(t-CO2)0

Recycling Amount ofamountlandfill waste

2010 2011 2012

(F Y)

2010

2011

2012

(F Y)

Targets and results
Target ofenvironmental policy
1. Createenvironmentallyconcious products

Fiscal 2015
Mid- to long-term environmental target
Contribute to reduction in greenhouse gas emissions for society
through products and services (amount of indirect emissions)
20% reduction in CO2 emissions compared to fiscal 2000

Fiscal 2012
Environmental target for fiscal year
Contribute to reduction in greenhouse gas emissions for society
through products and services (amount of indirect emissions)
Implement measures for 20% reduction in fiscal 2015
compared to fiscal 2000

Results

Evaluation

Implemented measures for 20% reduction in fiscal 2015
compared to fiscal 2000 (prepared marketing materials
for expansion of high efficiency transformers, designed
and commercialized smaller, lighter weight capacitor, etc.)• Turned off non-essential lighting• Changed to high efficiency fluorescentlamps and high efficiency mercury lamps• Strictly managed temperature of heating
and cooling• Expanded environmentally conscious
driving practices• Installed energy recovery devices

Reduce greenhouse gas emissions from business activities(amount of direct emissions)
5% reduction in energy-derived CO2 emissions comparedto fiscal 2010

Reduce greenhouse gas emissions from business activities(amount of direct emissions)
1% reduction in energy-derived CO2 emissions comparedto fiscal 2010

Reduced energy-derived CO2 emissions by 25%
compared to fiscal 2010

3. Mitigation ofclimate change.
(Control SF6 emissions
into the atmosphere)

Reduce greenhouse gas emissions from business activities(amount of direct emissions)
Keep ratio of SF6 gas airborne emissions at less than 2.0%

Reduce greenhouse gas emissions from business activities(amount of direct emissions)
Keep ratio of SF6 gas airborne emissions at less than 2.0%

Ratio of SF6 gas airborne emissions was 1.2%

Reduce volume of waste to total production by 5%compared to fiscal 2010

Reduce volume of waste to total production by 2%
compared to fiscal 2010

Reduced volume of waste to total production by 2%
compared to fiscal 2010

Keep ratio of land filled waste at 1.0% or below

Keep ratio of land filled waste at 1.0% or below

Ratio of land filled waste was 1.0%

Reduce emissions of volatile organic compounds (VOC)
into the atmosphere 5% reduction compared to fiscal 2010

Reduce emissions of volatile organic compounds (VOC)
into the atmosphere
Create proposal of measures for 5% reduction in 2015
compared to fiscal 2010

Created proposal of measures for 5% reduction in 2015
compared to fiscal 2010 (choose alternative solvent,install electrostatic painting equipment)

5. Discharge limitation(Prevent environmental
pollution)

Target achieved

25• Requested business partners to obtain ISO14001 certification• Promoted the manufacturing and sales of high efficiency products• Designed and commercialized lighter weight equipment• Promoted sales of photovoltaic systems

2. Mitigation ofclimate change.
(Energy conservation)

4. Discharge limitation(Resources conservation
and Recycling)

Example of activities• Changed over to energy efficienttransformers• Reduced operating hours ofcompressors and other equipment• Installed photovoltaic systems• Reduced energy usage by cutting backon overtime hours• Promoted company-wide visualizationof the energy management system• Improved recovery rate of SF6 by strictly managing processes involving the gas• Installed SF6 recovery equipment• Reduced packaging materials during import• Encouraged bulk orders• Reduced waste paint• Promoted paperless documentation• Reduced print outs through computerization• Installed electrostatic painting equipment• Controlled paint coat thickness• Recycling of solvent

Target not achieved (improved since previous year)

Target not achieved (declined since previous year)26