2021
I N T E G R AT E D R E P O R T
F i s ca l y e a r e n d e d M a r ch 3 1 , 2 0 2 1

JEOL Ltd.

Principles andJourney

Seventy-two years supporting scientifictechnology around the world.
Carrying on the founding principles of“Creativity” and “Research and Development,”
we will continue to contribute to scientificprogress and societal development.

Providing optimal solutions to support customer innovations

Period Covered:
April 1, 2020 through March 31, 2021, fiscal year 2020.
Please note that some matters that fall outside this period are also reported. Fiscal years referred to in thisreport cover the period from April 1 to March 31. FY 2020 refers to the fiscal year ended March 31, 2021.

1

Company Philosophy

CONTENTS

On the basis of "Creativity" and "Research

Principles and Journey

and Development,"
JEOL positively challenges
the world's highest technology, thus
forever contributing to the progress

2………… Company Philosophy
Guiding Principles for JEOL Staff
3………… Our History of “Creativity” and “Researchand Development”

in both science and human society

Our Value Creation Story

through its products.

5………… Message from the Chairman
7………… Toward New "Creativity" and "Research andDevelopment"

2.	‌We will be grateful to our customers for theirsupport and do our best to offer the bestproducts and service to them.
3.	‌We will keep ourselves in good physical andmental health and create a nice andrewarding working environment.
4.	‌We will understand other's positions and fulfill
our responsibilities through good teamwork.
5.	‌We will be constantly cost-minded and utilize
time and goods to their best advantage.
6.	‌We will absorb a wide range of knowledge
and put it in practice for our own growth.

15……… Message from the CFO
17……… Initiatives for the SDGs
19……… Overview by Business Segment:
Scientific and Metrology Instruments Segment
21……… Overview by Business Segment:
Industrial Equipment Segment
23……… Overview by Business Segment:
Medical Equipment Segment
25……… New Services
Our Business Foundation
27……… International Standards Compliance for
the Environment and Quality
29……… Together with the Environment●
Principles and Journey

14……… Reflection on the Medium-Term
Management Plan●
Our Value Creation Story

1.	‌ We will take pride in our work and endeavor
to reform our present situation withchallenging spirits.

13……… Medium-Term Management Plan

32……… Together with Employees
33……… Together with Local Communities
35……… Management Team
37……… Corporate Governance
39……… Executive Compensation System (Design)
40……… Risk Management
41……… Messages from Outside Directors●
Our Business Foundation

On the basis of our company philosophy
emphasizing "Creativity" and "Research andDevelopment," we will act up to the following
guiding principles, with pride as JEOL staff andrealize our responsibilities as members of
the society.

9………… Message from the President

Data
43……… Consolidated Five-Year Summary
45……… Corporate Outline / Stock Information●
Data

Guiding Principles for JEOL Staff

2

Our History of “Creativity” and “Research and Development”
The name JEOL is an acronym for the name of the Company at our founding: Japan Electron Optics

DA-1
magnetic field electron microscope

1956

1949

1956

1959

1961

1962

1964

1966

1968

1969

1970

1973

1976

1981

Japan Electron Optics Laboratory Co., Ltd. establishedin Mitaka, Tokyo

First electron microscope exported to CEA Saclay Atomic Energy
Research Institute in France

Representative office opened in Paris, France,as the first overseas office

Company name changed to JEOL Ltd.

First overseas subsidiary established in the United States

Overseas subsidiary established in France

JEOL listed on the First Section of the Tokyo Stock Exchange

Overseas subsidiaries established in the UK and Australia

Kazato Research Foundation established to support
the fostering of academic learning

Overseas subsidiary established in Italy

Overseas subsidiaries establishedin the Netherlands and Sweden

World's first atomic micrograph takenwith a JEOL electron microscope

Name of the Company in English formally
becomes JEOL Ltd.

1985

1947

The history of NMR goes back to 1944 with thediscovery of this phenomenon, for which thescientists received the Nobel Prize in Physics. In
1950, an overseas manufacturer released thefirst commercial product. At the time, it was seen
as a very special type of equipment for research.
However, recognizing that it was a highly nichemarket with few entrants, JEOL began work on
NMR development as a new business. In 1956,
JEOL launched the JNM-1, the first domestically produced NMR system.
NMR systems observe the molecular structure in substances, and today,
they are essential in the world of organic chemistry.
Since the release of the JNM-1, JEOL has contributed to progress in bothscience and society by continuing to refine our NMR technology. Despite thechanging business environment, we have maintained our NMR business out ofa sense of social responsibility, and now there are only two companies in theworld that manufacture NMR systems, including JEOL.

Predecessor company Electron Science Laboratory establishedin Mobara, Chiba

Corporate
HistoryThis was the first electron microscope made by ourpredecessor, Electron Science Laboratory.
Based on the belief that there could be no post-war
reconstruction in Japan without progress in science andtechnology, our founder, Kenji Kazato, and young associates
began the development of electron microscopes.
It was a challenge that was almost a shot in the darkin the days immediately following the end of World War
II when both supplies and information were not always
available, but the members of the team were passionate
about contributing to society through science. Theycame together and succeeded in completing this development in a year and a half.
At the time, manufacturing electron microscopes was a rarity, so this madenational news, and even Emperor Showa and the Crown Prince (later Emperor
Akihito) came to see the microscope.
In 2010, a milestone in the development of electron microscopes, theNational Museum of Nature and Science recognized the DA-1 as an Essential
Historical Material for Science and Technology.

JNM-1
nuclear magnetic resonance (NMR) system

Office opened in Beijing, China

1947

Net sales
1970

1972 Dr. Shinichiro Tomonaga(Physics, Japan)

Visitsby Nobel Prizewinners

3

1980

1980 Dr. Linus Pauling(Chemistry and Peace, USA)1980 Dr. Alexander Prokhorov(Physics, Soviet Union)

1990

1987 Dr. Klaus von Klitzing(Physics, Germany)

Laboratory. JEOL is now a brand that is known worldwide.

JCA-BM12clinical chemistry analyzer

JBX-9000MV
electron beam lithography system

1999

Evolving in the 70th Year
1996

1997

1999

2002

2005

2006

2011

2014

2015

2017

2019

2020

JEOL Group website published

Overseas subsidiary established in Germany

JEOL celebrated the 50th anniversary

Established YAMAGATA CREATIVE CO., LTD.
(currently JEOL YAMAGATA CO., LTD.)

Agreed to set up an industry-academia collaboration
office with the University of Tokyo

Established JEOL Shanghai Semiconductors Ltd.
in Shanghai

Nuclear magnetic resonance business split off to establish
JEOL RESONANCE Inc.

Agreement on capital and business alliance reachedwith Nikon Corporation

NIMS-JEOL Center of Excellence for Analytical
Technology establishedBest-in-class spatial resolution achieved jointly with the
University of Tokyo using JEOL electron microscope

70th Anniversary Forum held at Hotel New Otani

California, USA-based venture company IDES acquired

2000

p.7
FY 2020
consolidated net sales:¥110,440 million

2010●
Our Value Creation Story

1995
Overseas subsidiary begins in Singapore–Approach to Growth Markets–

2020
Fiscal year

Note: Net sales on a non-consolidated basis until fiscal 1976.

1991 Sir Andrew Huxley(Physiology or Medicine, UK)1988 Dr. Kai Siegbahn(Physics, Sweden)

1989 Dr. Leo Esaki(Physics, Japan)

1998 Dr. Heinrich Rohrer(Physics, Switzerland)●
Principles and JourneyThis is an electron beam lithography system forfabricating the photo masks that are essential
for manufacturing semiconductors.
JEOL was a participant in the Associationof Super-Advanced Electronics Technologies,
established to boost the competitiveness of
the Japanese electronics industry. Applying the
research results obtained by this association,
we created the JBX-9000MV, a world-classlithography system supporting the contemporary
180 nm / 130 nm process rule.
The global market was dominated by American manufacturers at that time,
and the US market was considered impregnable, but the high potential of the
JBX-9000MV was recognized, and it made its debut in the US market in 2000.
As a result, our share of the global market for electron beam lithographysystems used for fabricating photo masks increased significantly from 7% in1997 to 33% in 2002.

2016 Dr. Ryoji Noyori(Chemistry, Japan)

2018 Dr. Richard Henderson●
Our Business Foundation

Biochemical analysis is performed to manage
people’s health and to obtain informationnecessary for treating diseases. The JCA-BM12
was developed as a new generation clinicalchemistry analyzer based on the concept ofbeing faster, more economical, and morereliable.
As the first machine in our BioMajesty series,
the JCA-BM12 was released in a bid to break free from conventional technology
and to respond to changeable market requirements.
This series greatly reduced the sample volumes and reagent amounts
required for testing compared with conventional machines, allowing tests to be
performed with one-fifth the sample volume and one-third the amount ofreagent. This reduced the workload for those involved in clinical testing andhas helped improve medical treatments.
In 2008, we received the Japan Society of Clinical Chemistry Technology
Award for our development of the BioMajesty series and for our contribution toclinical testing.

(Chemistry, UK)2020 Dr. Yoshinori Ohsumi(Physiology or Medicine, Japan)

●
Data

1996

4

Our Value Creation
Story

Message from the Chairman

5Since the beginning, JEOL has grown as a company that
contributes to scientific progress around the world. Whilenever forgetting our founding principles of "Creativity" and"Research and Development," we will continue to work on
growing our business. Thank you for your continuing
support.

Gon-emon Kurihara
Chairman & CEO●
Our Value Creation Story

For the past decade, we have been using YOKOGUSHI as
our long-term strategy. At first, this was a strategy weintended to use to strengthen our business through crosssectional operations within the Company, but today it isbeing used as a strategy for promoting collaborations
among industries and between academia and industry, inother words, open innovation.
Today, there are limits to going it alone for businessdevelopment. It is more important to promote crosssectional collaboration with other companies, universities,
and organizations, so that we can create completely newvalue.

●
Our Business Foundation

In May 2020, we celebrated our 70th anniversary. I havenothing but deep gratitude for the support we have received
from an enormous number of people over the years.
JEOL was founded as a developer and manufacturer ofelectron microscopes in 1949, shortly after the end ofWorld War II. The founder’s desire—to contribute toJapan’s reconstruction by developing electron
microscopes that support scientific progress—has been
continued by employees over different generations, andthe noble principles of our founding shine brightly.
For our 70th anniversary, we published a message
entitled, Evolving in the 70th Year. This message
expresses our strategy for growing our business
operations. Based on our core scientific instrumentbusiness segment, we will provide equipment andservices to markets, now substantially larger than
before, for medical equipment, semiconductors, andother industrial equipment. We will accomplish thisgrowth by capitalizing on the technology and human
networks we have cultivated in our scientific andanalytical instrument businesses, including the electron
microscope business from our founding as well as themarket for nuclear magnetic resonance (NMR) systems.

We have been rolling out specific strategies based on
three-year medium-term management plans. At the sametime, we have been consistently communicating amessage, both internally and externally, designed topromote long-term corporate activities. The mostimportant concept behind that message is not to lose the
DNA from our founding. Two elements of our DNA are
putting the community before yourself and being “bornglobal.” Of course, we also intend to maximize our gains,
but above that, we are a company that emphasizes social
contribution. Moreover, we are a company that was “bornglobal” and that has a strong global network for direct
sales and service that we have built up since ourfounding.

●
Data

Corporate management is often heavily swayed byuncontrollable external factors such as the COVID-19
pandemic. In the past, we have been put into very difficult
circumstances by the global recession triggered by thebankruptcy of Lehman Brothers, the Great East Japan
Earthquake, and other similar events. However, we seethese as opportunities for making management reforms,
and we have been working on improving our corporate
structure with the belief that facing disasters can lead totransformation.

●
Principles and Journey

We are accelerating business development in
new growth markets based on our history of
supporting scientific progress around the world
since our founding in 1949.

6

Toward New "Creativity" and "Research and Development"

The biggest goal of value creation at JEOL is to contribute to scientific progress and societal
development, starting from the founding principles of "Creativity" and "Research andDevelopment." Now, 72 years after our founding, we continue to maintain that founding spirit
and put every effort into improving corporate value every day that provides optimal solutions to
support our customers’ innovations.
In recent years, science and technology have progressed rapidly, and the roles required ofcompanies are becoming increasingly diverse. We have two strategies that provide a firm baseas we take up the challenge of value creation, even as society changes.
In this section, we provide information on our Evolving in the 70th Year vision and our
YOKOGUSHI (cross-sectional collaboration) stratedy.

Growth Vision

Evolving in the 70th Year

In 2019, the year we celebrated our 70th anniversary, wescientific and metrology instruments segment, including

announced Evolving in the 70th Year as our new growthelectron microscopes and nuclear magnetic resonancevision. The main intitiatives are improving our coresystems—and spiraling out from there.

technologies, proactively entering growth markets, andproviding total solutions.
The illustration below shows business creation byproactively entering growth markets.

Under Triangle Plan 2022, our current medium-term
management plan, equipment for semiconductors, industry,
and medicine have been defined as our growth markets,
and we aim to further improve corporate value byThis illustration expresses our approach toward

introducing new products and solutions into these markets.

markets expected to grow based on our strengths by

In this way, JEOL will continue to move into newstarting with the core technologies—built up in thebusiness domains.

Industrial
Equipment

Medical Equipment

3D printing

Immune assay systems

Electron beam sourcefor deposition

CRYO ARM™

Clinical chemistry analyzers

qNMR (quantitative NMR)
methodSemiconductor
Equipment
Service
Contracted analysis
Environmental Engineering
Reuse

Electron beam mask
lithography systems
Electron beam direct
lithography systems
Semiconductor TEM

Medium-Term Management Plan p.13
7Model of Behavior

YOKOGUSHIThe YOKOGUSHI stratedy is our unique model of behavior
for providing solutions in cutting-edge technologicalfields.

The model of behavior for creating these innovations
is set out in our YOKOGUSHI strategy.

private), we have established a foundation for open

conventional boundaries—not just existing methods.

innovation. YOKOGUSHI produces strong cross-sectional

As a leading manufacturer of scientific and metrology

ties not just within our Company but with outside parties,

instruments, we have provided equipment in a range ofmaking it possible to create new value not previously

fields to meet complex market needs. Because of that, wepossessed by either party. We already have a track record

possess a broad product lineup that you will not findin several product fields that includes favorable reception

anywhere else. Combining each of these products acrossby the market for the unique systems we have developed

categories in an organic way allows us to develop next-

in collaboration with other companies.

generation solutions and applications no one has everseen before.

Through YOKOGUSHI, we will promote innovations thatlead to the future so that we create solutions thatcompletely satisfy our customers.

YOKOGUSHI Initiatives

1. The University of Tokyo-JEOL University-Corporate Collaboration Office
In June 2005, the University-Corporate Collaboration Office was established by the School of Engineering at the University of Tokyoand JEOL Ltd. The aims of the new office are to promote and provide education, both in Japan and overseas, on advanced
technology related to characterization and metrology, particularly using an electron microscope. The School of Engineering at the
University of Tokyo has a long history of gathering research results and know-how in education and research based on state-of-theart microscopes and technologies. JEOL has highly advanced applied electron microscope technology and professional support.
By combining these specialties, we intend to create a new type of academic and corporate collaboration, focusing particularly on
nanotechnology, interdisciplinary research and education, and the promotion of scientific technology. As well, we will encourage
activities that contribute to society, locally and globally.

2. Osaka University-JEOL YOKOGUSHI Research Alliance Laboratories
This collaborative research institute was jointly established by Osaka University and JEOL Ltd., in April 2018, by integrating theEndowed Research Division of Multi-scale Structural Biology (JEOL), located in the Institute for Protein Research of Osaka
University, and the Mass Spectrometry Open Innovation Joint Research Seminar of Osaka University’s Graduate School of Science.
The institute is intended to be a center for innovation in pioneering the next generation of life science research. The goals of theinstitute are to drive innovation and improved performance in cryo-electron microscopes, nuclear magnetic resonancespectrometers, and mass spectrometers, as well as to establish easy-to-use, advanced, and fast measurement and analysis
methods. This collaborative research institute will enable us to develop globally competitive scientific measuring instruments andrelated research and development by uniting Osaka University’s superior fundamental research with the technologicaldevelopment competencies of JEOL Ltd.

3. JEOL-Nikon CLEM Solution Center
In September 2017, Nikon Corporation and JEOL co-founded the JEOL-Nikon CLEM
Solution Center within the JEOL headquarters. Correlative light and electron microscopy(CLEM) is an observation and analysis method that links information obtained by optical
microscopes as well as electron microscopes and harnesses the advantages of both
instruments. By combining Nikon’s optical microscope technology with JEOL’s electron
microscope technology, CLEM can provide innovative solutions, and it is expected that
this method will improve productivity in industrial fields and accelerate R&D in medicine
and biology.

●
Our Value Creation Story

exist requires new ideas and connections that go beyond●
Our Business Foundation

organizations, and research institutes (both public and●Data

To create products and services that do not currently●
Principles and Journey

Having collaborated up to now with companies,

8

Message from the President

We will improve corporate valueand help to resolve social challenges
by steadily implementing a growthstrategy based on our Evolving
in the 70th Year vision.

Izumi Oi
President & COO

9●
Our Value Creation Story

In FY 2020, we exceeded our amended operating
fo r e c a s t s ( a n n o u n c e d i n O c t o b e r 2020) , w i t hconsolidated net sales and consolidated operating
income coming to ¥110.4 billion and ¥5.2 billion
respectively, while consolidated ordinary profit reached¥6.6 billion. Income and profit fell compared with FY
2019, particularly due to a deteriorating market forscientific and metrology instruments as well as medical
equipment due to the impact of COVID-19. However,owing to strong orders primarily in the industrial
equipment segment, orders received totaled ¥122.6
billion across the company, breaking internal records. Inline with this growth, our backlog of orders came to ¥60.8
billion at the fiscal year-end, significantly exceeding theprevious record of ¥48.7 billion set in FY 2019. For FY
2021, we are planning for record-breaking sales andprofit, including consolidated net sales of ¥126.5 billion,
as well as operating income of ¥8.3 billion, ordinary profitof ¥8.5 billion, and ¥6.4 billion in net income attributableto owners of the parent. This forecast is primarily due togrowth in the semiconductor industry, particularly now thatthe market for multi-beam electron beam lithographysystems continues to grow. We jointly developed thesesystems with Austria-based IMS Nanofabrication GmbH
(IMS). Another positive factor is a general trend in market
recoveries for all business segments due to the likely
containment of COVID-19, despite there being differencesin progress among regions. The ordinary profit target forthis fiscal year is based on an exchange rate of ¥105 per
dollar. However, this is equal to an ordinary profit of ¥10billion based on an exchange rate of ¥110 per dollar—
the target in our medium-term management plan, Triangle
Plan 2022, which is now in its final fiscal year.
Although the market outlook remains unclear, I believethat we were able to start FY 2021 with strong potential,
ready to accomplish the plan for the fiscal year andachieve the goals set out in Triangle Plan 2022.

●
Principles and Journey

Record-Breaking Sales and Profits
Expected with a Rich Backlog of Orders●
Our Business Foundation

In fiscal 2020, we were heavily impacted by the global
COVID-19 pandemic. Although there is growing hope thatthe virus can be beaten now that vaccines are beginningto be widely distributed, scientific technology remains the
key to understanding the structure of COVID-19 andcreating countermeasures. I believe that the importance of
this key idea has been widely affirmed. Our main businesssegment, scientific and metrology instruments, provides
cutting-edge scientific instruments that only two or threecompanies in the world are capable of developing andmanufacturing, and our electron microscopes are being
used extensively to analyze the structure of COVID-19.
Fiscal 2020 was a year when we fully realized theimportance of contributing to scientific progress—our
purpose as a company—as well as the importance ofincreasingly adding more value to equipment and services.
With Japan’s declaration of a state of emergency, we
set up a taskforce, where I serve as chairperson, forcountering COVID-19. Through this taskforce, we
formulated and systematically implemented programs andprocedures to prevent Group employees from being
infected. Although, as a manufacturing company, we
maintained a fixed number of Production Divisionemployees that continued to come to the workplace, we
also introduced remote working. Our goal was to continue
business operations while giving the highest
consideration to the safety of our employees. Also,
because many exhibitions and seminars were canceled,
we held webinars and online user meetings, maintaining
communications with our customers by introducing themto new products and solutions. Moreover, by supporting
the delivery of products remotely and building a system
where customers could participate in online classes, wecreated a global framework to make it relatively easy toinstall our equipment, despite the difficulty of taking
business trips overseas.
I believe that we were able to operate our businesswithout many problems because of our employees’ hard
work. While remembering to prevent infections, theysuccessfully carried out their work during the pandemic byusing their highly effective skills and by having anawareness of the need for change. I want to express mydeepest gratitude to all of our employees who continued

to go all-out in their work, as well as their family members
who support them, despite being in an environment wherestress levels could be high due to constantly needing to
be careful of the risk of infection.

●
Data

Facing COVID-19 and Overcoming
Difficulties Companywide

10Driving Further Growth through the
Evolving in the 70th Year vision and
YOKOGUSHIIn May 2019, we celebrated our 70th anniversary, taking
the occasion to launch our vision for growth: Evolving in
the 70th Year. The technology and business relationships
maintained by our scientific and metrology instruments
segment have been cultivated over many years working in
the academic market, and they represent the DNA thatflows throughout our company. Although the size of themarket for scientific and analytical instruments is notlarge, with a domestic output of approximately ¥600
billion, it represents an important core segment that isessential for the growth of the JEOL Group. We intend to
improve profitability while resolutely investing in R&D inthis area. Using the assets we have developed within thiscore segment, such as our technology and business
relationships, we are working to grow our business byturning to considerably larger markets, including thoserelated to semiconductors, medical and industrial
equipment, and service industries. The outlook forbusiness growth is promising, with strong orders and sales
already occurring in the semiconductor segment forelectron beam mask lithography systems, along withincreasing international demand for medical equipment
backed by an immense global market. To support the
expansion of both of these segments, in March last year
we acquired a new business location and production
plant in Musashimurayama City, both scheduled to begin
operating in the second half of this fiscal year.
There was a new initiative in industrial equipment: in
March this year, we launched sales of an electron beam
metal 3D printer, using the electron beam technology that
we have developed over many years. By capitalizing on
this electron beam technology, one of our company’s
strongest technologies, this equipment reliably produces
high-quality shapes, despite using high melting-point
metals (resistant to being heated), such as titanium.
Under a growth trend in the metal 3D printer market, weare striving to grow this area into one of our main
business segments and gain a strong reputation within
the market for our ability to produce shapes madepossible by an electron beam’s unique attributes.
Moreover, within our core segment, scientific andmetrology instruments, we are continually releasing new

11

products that are unique, adapted to market needs, andable to contribute to improving profitability. The majority ofthese new products have been developed using our
YOKOGUSHI strategy, as well as through collaborations
between academia and industry, and through cooperationand open innovation with other companies. One exampleof these new products is Synergy-ED, an integrated
electron diffraction platform announced in June this year
and produced via a joint development with Rigaku
Corporation. We have been able to create new added
value by combining the core technologies of both of ourcompanies.
In January last year, JEOL acquired all the shares of
US-based IDES, making it a wholly owned subsidiary. IDESi s d eve l o p i n g u n i q u e, i n n ova t i ve p ro d u c t s a n dapplications that use our electron microscopy technology.
Going forward, we will continue to accelerate productdevelopment based on the YOKOGUSHI strategy toincrease profitability.

Answering Societal Challenges with
Scientific Technology
With COVID-19 having become a social issue on a global
scale, virus research and the development of vaccines
and therapeutic drugs have become major themes.
Against this background, cryo-electron microscopes havegained attention for their ability to assist in understanding
the structure of viruses. It has been widely recognized thatthese instruments are an extremely effective tool fordeveloping pharmaceutical drugs, and we are keenly
aware of the growing market for them. The new cryoelectron microscope model that we announced in
January this year further improves throughput andoperability. As one of only two companies in the world
developing and supplying cryo-electron microscopes, weare mindful of the momentous responsibility that we have.
JEOL’s company philosophy has a phrase, “thus forevercontributing to the progress in both Science and Human
Society.” Before the term SDGs (Sustainable Development
Goals) was first developed, our company was alreadyengaged in operations linked to creating a sustainable
society. Over many years, we have been involved in joint
research and collaboration between industry andacademia throughout the world—becoming a company
that contributes to the development of society and that●
Principles and Journey●
Our Value Creation Story

Our basic policy for profit distribution is to maintainconsistent dividends from a long-term perspective basedon our business initiatives to improve our financial
standing and our corporate structure. For the fiscal year
under review, in light of our business performance andfinancial condition, the year-end dividend was ¥12 pershare. Added to the interim dividend, this brings the total●
Our Business Foundation

To Our Stakeholders

annual dividend to ¥24 per share.
At the 74th Annual General Meeting of Shareholders
held in June this year, the number of outside directors
increased by one, resulting in a board structure with nine
directors, of which three are outside directors. Goingforward, we will further develop our corporate governancesystem by putting in place an organizational structure thatcan swiftly respond to changes in the businessenvironment, as well as by strengthening our framework
for maintaining compliance.
Since starting out in 1949, JEOL has been a company
that contributes to scientific progress and societal
development. While firmly maintaining our DNA and
identity, we aim to improve our corporate value and realize
our growth strategy based on our Evolving in the 70th Yearvision. We look forward to your continued understanding
and support throughout this year.

●
Data

helps resolve global challenges. I have a deep convictionthat by growing our business based on our Evolving in the70th Year vision, we will be able to contribute to thecreation of a sustainable society, improve our long-termvalue as a company, and gain favor with our stakeholders.
I believe that the work of JEOL is directly linked to theachievement of the SDGs.

12

Medium-Term Management Plan

(FY 2019–2021)

Basic Approach

JEOL Continues to Move into New Business Domains
Triangle Plan 2022, our medium-term management plan, was launched in 2019, the 70th anniversary of our
founding. Based on the direction of the previous medium-term management plan, the Triangle Plan, JEOL
will implement the following measures to accelerate growth by “Evolving in the 70th Year” and by taking thenext step toward further growth (after the current medium-term management plan). JEOL will provide
optimal solutions to support customer innovations with “Solutions for Innovation” as our corporate motto as
we aim for continual growth over the long term.

Evolving in the 70th Year

1

2

Enhancecore technologies

Proactive entry into
growth markets

We will continue to develop core technologies, the high-Based on these core technologies, JEOL will proactively

end measurement and analysis technologies that areenter into large markets where growth is expected tothe source of the added value provided to society by theaccelerate (overseas markets as well as those for

JEOL Group.

semiconductor, industrial, biotechnology, and medical
equipment).

3

4

Providetotal solutions

Make the required investments
and improve profitability

JEOL will provide total solutions, including services that

We will make all necessary investments at the opportune timelead to improved usability and efficiency, focused not

to take advantage of business opportunities as the scale andjust on equipment, but our customers’ entire workflow.

scope of our business grows. At the same time, we will
promote efficiency and constantly improve profitability.
Overview by Business Segment p.19

13

Reflection on the Medium-Term Management Plan

Triangle Plan 2022 Positioning

Accelerate Growth and Take the Next Steps
Based on the direction of the Triangle Plan, JEOL will implement the following measures to accelerate
growth by Evolving in the 70th Year and by taking the next step toward further growth (after the current
medium-term management plan), with the aim of continuous growth over the long term.
Step 3 (fiscal years 2016 to 2018)
Concrete growth strategy

Step 2 (fiscal years 2013 to 2015)

Triangle Plan

Shift toward growthstrategies

Step 1 (fiscal years 2010 to 2012)

Step 4 (fiscal years 2019 to 2021)

Dynamic Vision

Improve our businessfoundation

Accelerate growth andtake the next steps

CHALLENGE 5

Triangle Plan
Speed
Pursue high-throughput
functionality and speed up
development

Improve manufacturing abilities
Enhance our brand power

Difference
Launch Only-One JEOL products,
inculcate YOKOGUSHIYOKOGUSHI strategy full-scale
start

Deep cultivation of developing
markets
Establish local subsidiaries in
Brazil, Russia, India, China, andother countries
We will be assertive whendeveloping our solution businesstargeting markets fornanotechnology, the life sciences,the environment, and quality
control. We will review ourdevelopment system and takedecisive action to transform thissystem into one capable of quickly
supplying competitive products.

Implement capital policies(public offering & Nikon alliance)

ChangeShift from academia to private
demand and from physicalproducts to services

Convert JRI into consolidated
subsidiary
Our priority strategies will beboosting our strengths in productdevelopment and manufacturing, as
well as the power of our brand. As
the true Only One company that canmeet a wide range of needs, we will
dynamically promote a growthstrategy.

Keeping in mind the three
keywords—speed, difference, andchange—our biggest goal is totransform into a highly profitablecompany capable of generating
continual, solid profits by improving
and by realizing our growth strategy.

Based on the Triangle Plan up tonow, JEOL will implement thefollowing initatives to accelerate
growth by Evolving in the 70th Yearand by taking the next step towardfurther growth (after the current
medium-term management plan),with the aim of continual growthover the long term.

Change of Consolidated Net Sales and Operating Income
Consolidated net sales

83.2

75.3
1.4%
1.0
( FY )

2010

99.3

79.6
-1.4%

(billions of yen)

Operating margin

Operating income (loss)

6.1%

107.4

95.4

5.7%
6.1

3.7%
3.0

111.3
6.0%

104.6

99.7

117.2

2.9

4.7%

8.3
5.2

3.9

2.1

-1.2
2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

¥79

¥83

¥100

¥110

¥120

¥109

¥111

¥111

¥109

¥106

Exchange rate (1$=)

¥85

6.6%

7.0

6.7

2.1%

126.5

110.4

6.0%

3.8%

3.1%
6.0

●
Our Value Creation Story

Corporate culture reforms
Visualization, PDCA, market
reforms

Strengthen productdevelopments

2021(target)●Our Business Foundation

Management structure reforms
Reduce the number of employees
and other structural reforms
Restructure Group companies●
Principles and Journey

2022

FY 2021 targets:

126.5 billion

consolidated
net sales of ¥consolidated
ordinary profit of ¥8.5 billion●
Data

Numerical Targets

14

Message from the CFO

Improving corporate value throughcapital management focused on
efficiency and restoring the earning
power of our core businesses.
Katsumoto Yaguchi
Director and Executive Officer
in charge of Finance,
IT and Export Trade Control

Message from the Newly Appointed CFO
At the 74th Annual General Meeting of Shareholders, I was
appointed the CFO, the director in charge of finance. In thefive years before my appointment, I was the US Managing
Director, and worked to strengthen collaboration between
the parent company and the US subsidiary. Before that, I
worked as the General Manager of Financial Affairs
Division, supporting from a financial perspective therealization of the Group’s medium-term management plan
CHALLENGE 5: Improve our business foundation (fiscal
years 2010 to 2012) and the medium-term management

plan Dynamic Vision: Shift toward growth strategies (fiscal
years 2013 to 2015).
I feel that the CFO’s role is to not only be the executive
in charge of finance, but also work together with the CEO
and COO to continually improve corporate value over the
long-term by promoting strategies that strengthen our
financial condition, and by conducting risk managementthat includes setting up internal control systems. By
drawing on the experience I have gained so far, I will strive
to fulfill my role as CFO.

Summary of the Fiscal Year Ended March 31, 2021
For the consolidated operating results for the fiscal year
ended March 31, 2021, the scientific and metrology
instruments segment and the medical equipment
segment both experienced a decrease in sales and profits
due to the impact on the market caused largely by the
COVID-19 pandemic. However, the industrial equipment
segment maintained the same level of sales and profits as
the previous year due to a continuing boom in thesemiconductor market. As a result, the Company achieved
consolidated net sales of ¥110.4 billion and consolidated
operating income of ¥5.2 billion, while consolidated
ordinary profit totaled ¥6.6 billion—all three exceeded theoperating forecasts announced in October 2020.
The ratio of operating income to net sales was 4.7%
(down 1.3 points year on year), while the return on equity(ROE) was 7.8% (down 4.6 points). The decrease in ROE
was due to weaker earnings in the scientific andmetrology instruments segment and the medical
equipment segment. The scientific and metrology
instruments segment is our “DNA business,” and improving
the profitability of this segment is the core of the Group’s
growth strategy. Although the cumulative capital

15

investment in this segment is the largest, profitability
remains at a low level and the business has matured. We
intend to build “barriers” to improve ROE by cutting costs,
by developing proprietary technology through selective
concentrated investment, and by retaining customers.
Conversely, the industrial equipment segment is in a
growth phase and profitability remains high. We aim togrow our business using management resources. Although
investment may reduce capital efficiency in the short term,
we should emphasize the contribution of profits to theentire company.
On a consolidated basis, the shareholders’ equity ratioof fiscal year ended March, 2021 was 34.8% (up 1.8
points year on year). Our financial position is steadily
improving, and we are working to develop an optimal
capital structure, while preparing for business risks andbuilding a foundation for strategic investment, step bystep.

Operating margin

Operating margin by segment

ROE (%)
Operating margin (%)

Industrial Equipment Segment (%)
Medical Equipment Segment (%)
Scientific and Metrology Instruments Segment (%)

15.0
13.0

12.4

28.4
7.8

6.0

6.0

3.8

4.7

2.1
1.9
2016
(FY)

2017

2018

Shareholders’ equity ratio

2019

2020

30.0

30.9

Shareholders’ equity ratio (%)

34.8

30.3

33.9
32.6

23.0

10.0

11.7

1.9

1.6

2016
(FY)

2017

11.5
5.0
2018

8.4
3.5
2019

6.0

33.0

29.6

1.7
2020

2016
(FY)

2017

2018

2019

2020

Direction of the Financial Strategy
Generally, when using a business management style that
focuses on economic indicators that track flow variables suchas sales and profits, there is the inherent issue of low
accountability to the capital market because less attention is
focused on the balance sheet. As our working capital ratio andfixed asset ratio tend to be high due to the nature of ourbusiness, we aim to improve our financial condition bystreamlining our balance sheet. We will achieve thisstreamlining by cutting the operating working capital turnover
period (mainly by reducing inventories), disposing of non-business assets after reviewing their profitability, and carefully
examining policies on cross shareholdings. At the same time,
we have established an ROE target of at least 10% to build aframework for improving medium- to long-term capital efficiency.
We built this framework by assessing the invested capital of theentire Company and each business division, then ensuring that
capital efficiency indicators permeate the whole Company.
Going forward, we will strive to improve sustainables corporate
value and meet the expectations of our stakeholders by improving
capital efficiency and strengthening our financial position.

●
Our Value Creation Story●
Our Business Foundation

billion; ordinary profit of ¥8.5 billion; and ¥6.4 billion in net
income attributable to owners of the parent.
Consolidated ordinary profit of ¥10 billion is one of thenumerical targets of Triangle Plan 2022, our medium-term
management plan that ends this fiscal year. As the businessplan for this fiscal year (mentioned above) assumes an
exchange rate of ¥105 per dollar, the same level of profit
targeted in the medium-term management plan can beachieved if the exchange rate remains in the ¥110 per
dollar range.
For capital allocation, we will focus on unique investment
opportunities, while considering, from a mid- to long-term
perspective, the optimum balance between growthinvestments, improved shareholder returns, and maintaining asound financial position. For shareholders’ dividends, we areconsidering steady dividends, taking into account the payout
ratio, dividend yield, and points raised in dialogues withinvestors. For the fiscal year ended March 31, 2021, the yearend dividend was ¥12 per share, in line with our initial plan.
Including the interim dividend, the total annual dividend
came to ¥24 per share. For the fiscal year ending March 31,
2022, we plan to issue a dividend of ¥28 for the full year.

●
Data

The global economic environment surrounding ourcompany is highly unpredictable. With the ongoing impact
of COVID-19, especially in emerging countries, there areconcerns that the difficult business environment willcontinue, due to factors such as a global shortage ofsemiconductor components and the overhaul of the global
supply chain triggered by economic insecurity. However,taking the orders for the fiscal year ended March 31, 2021
as the leading indicator, orders received totaled ¥122.6
billion, while the backlog of orders came to ¥60.8 billion;
both were record-breaking achievements. The industrial
equipment segment is maintaining strong performancelevels this fiscal year, primarily in the semiconductor market.
New products and applications that we put into the market
in the preceding fiscal years have stimulated demand in thescientific and metrology instruments segment. As well,demand is increasing in the medical equipment segment
among developed countries where COVID-19 has been
contained. Based on these business circumstances, for the
consolidated operating forecasts for the fiscal year ending
March 31, 2022, we are planning for record financial results:
net sales of ¥126.5 billion; operating income of ¥8.3●
Principles and Journey

Capital Allocation Policy and Plan for the Fiscal Year Ending March 31, 2022

16

Initiatives for the SDGs

Contributing to the Achievement of the SDGs
through Business Development that Leverages
JEOL’s Advantages
In fiscal 2019, the year we formulated Triangle Plan 2022,
our medium-term management plan, we announced that
we would contribute to the achievement of the SDGs as
an entire Group, and we highlighted the SDGs that wewould prioritize in our activities.
Further, in our 2020 Integrated Report we identified ourpriority social issues (materiality) and clearly stated theinitiatives that we would continually use to help resolvethese challenges. We also added and arranged priority
SDGs that we would work on.
We will contribute to the realization of a better, moresustainable world, as set out in the SDGs, by tacklingmateriality issues in both our business and ESG activities
and by expanding our unique business operations that
embody the spirit of JEOL.

Process for Identifying Materiality

1

STEP

2

STEP

3

STEP

Identify those materiality issues that can be resolved through ourbusiness activities
Review our lineup of products that contribute to the advancement of science and medicine andthen identify issues that can be resolved, while simultaneously supporting business development.

Identify materialities that can be resolved through our ESG initiatives
Identify issues that could be resolved through our unique business activities that focus on theenvironment, society, and corporate governance.

External communication and gathering information on materiality
We have set up the important initiatives for each materiality and the targets for SDGs, while
communicating information externally, beginning with publishing information in integrated reports.

SDGs
The Sustainable Development Goals (SDGs) refer to global objectives to create a better, moresustainable world by 2030. They were adopted at the United Nations Summit in September 2015
and are included in the 2030 Agenda for Sustainable Development.
The SDGs consist of 17 goals and 169 targets. These goals and targets deal with issues in suchareas as the economy, industry, and society. Corporations, which lead economic activities, areexpected to play an important role as one of the actors responsible for achieving the SDGs.

17

Contribute to scientificprogress and thesustainable
development ofsociety
Contribute to theconservation andsustainability of the
global environment

Conduct distinctive
activities that
contribute to thecommunity andsociety

SDGs being
addressed throughESG initiatives

Contribute to theconservation andsustainability of the
global environment

Develop humanresources and respecthuman rights• Provide medical equipment indispensable for the
diagnosis and prevention of illness• Provide equipment with high sensitivity and accuracy
that can analyze substances harmful to the humanbody• Provide manufacturing equipment that contributes tothe further development of sensing technology• Develop world-class scientific instruments supporting
advancements in science• Contribute to higher performance semiconductors
supporting the communication infrastructure• Create advanced technology by promoting partnerships• Provide measuring equipment indispensable for the
R&D of green devices• Manage chemicals throughout the supply chain byusing green purchasing• Develop equipment that reduces CO2 emissions byconserving energy• Provide science education support (lessons) using
electron microscopes at elementary and junior highschools• Support academic promotions and the fostering ofyoung researchers by donating to public interest
incorporated foundations• Promote open innovation in collaboration with domestic
and overseas research institutes and universities• Streamline electricity use by introducing energy-saving
equipment and other initiatives●
Principles and Journey

SDGs being
addressed throughbusiness

Targeted SDGs

• Reduce CO2 emissions at business locations throughout
the Group• Thoroughly separate, reduce, and recycle waste• Deploy the Don’t Litter campaign, a cleanup drive forbeautifying the surroundings• Promote the creation of a workplace where females
can more easily develop their careers• Enhance systems to help bring balance to work andfamily in line with every person’s stage in life
• Improve the awards program for employees making
exceptional achievements

Implementing Unique Educational Support
Programs
We are conducting science education programs for elementary and junior high schools as part ofour unique approach for contributing to local communities and society. We are visiting schools togive lessons on using portable electron microscopes; children operate the microscopes themselves
to observe plants and insects. By allowing students to experience the microworld, normally invisible
to the human eye, the classes encourage intellectual curiosity and the enjoyment of learning. This●
Our Value Creation Story

Provide products that
contribute to people’s
health, safety, andsecurity

Key Initiatives●
Our Business Foundation

Materiality

elementary schools throughout Tohoku as part of our contributions to support the revitalization of
the region following the Great East Japan Earthquake. Please see page 33 for more information on●
Datayear is the tenth time (every year since 2011) that we have carried out these programs inour science education support programs.

18

Overview by Business Segment

Scientific and Metrology Instruments Segment
Business description
With our roots in the development of electron microscopes, the scientific and metrology instruments segment
has been nurtured and grown since our founding as a part of our DNA.
By developing the scientific and metrology instruments that are among the best-in-class in the world, we
continue to support top scientists, including Nobel Prize winners, and others working at the frontiers of cuttingedge research.
Our products are used by universities and laboratories in more than 130 countries worldwide, and we
provide top-class solutions in various fields, such as nanotechnology, biotechnology, and the life sciences.
As a business that contributes to progress in both science and society, we will continue working on making
advances in our core technologies: measurement and analysis.

Main instruments

JEM-F200transmission
electronmicroscopeElectron optics instruments and measuring instruments
We are developing many instruments that apply electron beam, ion beam, X-ray, and othertechnologies, starting with electron microscopes.
We provide instruments that offer robust support for seeing and measuring in the nano world. These
include transmission electron microscopes for seeing substances at the atomic level; electron probe
microanalyzers that accurately detect elements contained in micro areas on the specimen surface; andmulti-beam milling/imaging systems for milling and observation of samples at the nanometer level.
Our business fields are broad-ranging, from cutting-edge academic research to quality control inthe manufacturing industry.

Analytical instruments
While electron optics instruments and measuring instruments approach substances from the outside,
analytical instruments examine the nature of substances from the inside. Our main products in thiscategory are nuclear magnetic resonance systems and mass spectrometers.
Nuclear magnetic resonance systems are another one of our core research instruments, as ourelectron microscopes were the first core research instruments. As these systems analyze the structureof substances from the inside, they are essential in the world of organic chemistry. Advanced technicalcapabilities are required for their development and manufacture, so there are only two companies in
the world, including JEOL, that are currently doing this.
Mass spectrometers tell you what a specific substance is made of and in what concentrations. One
example is their use in quickly analyzing the presence of substances in food that are harmful to health,such as agrochemical residue, so they contribute to our health and safety.

JNM-ECZ700R
nuclear magnetic
resonance system

Main customers 	������� Research institutes, educational institutions, manufacturing industry (chemistry, steel, machinery, food, nonferrous metal, electricaland electronic, etc.), public institutions, and analytical research companies
Main products 	��������� Electron microscopes, electron probe micro analyzers, photoelectron spectrometers, Auger microprobes, multibeam systems, X-ray
fluorescence spectrometers, nuclear magnetic resonance systems, electron spin resonance spectrometers, mass spectrometers,
portable gas chromatographs, and gas monitor analyzers.

Market trends•(

Electron optics instruments and measuring instruments••

Using electron microscopes as essential tools for virus research iscontinuing, while demand for these instruments is growing,particularly in the life science markets of developed countries.
These instruments are essential in a wide range of fields and theirmarket is growing: from basic research to the industrial applicationof nanotechnology, semiconductors, green technologies, andothers.
Nuclear magnetic resonance systems are essential for developing
certain materials as well as basic research in fields such as life
sciences and drug discovery, and the market growth is being
boosted by rising R&D costs in developed and emerging countries.
Mass spectrometers are experiencing significant growth forenvironmental analysis and the life sciences.

•
•
19

•

Analytical instruments)

Technology and product strategies(•

Electron optics instruments and measuring instruments••

Analytical instruments)

Launched a successor with high throughput for the JEM-Z300FSC
CRYO ARMTM 300 cryo-electron microscope, which gained a strong
reputation for protein analysis within the biotechnology and drug
discovery market.
For their trace element and chemical state analyses, our proprietary
soft X-ray emission spectrometers (SXES) have been highly rated
for use in a wide range of fields.
Due to its strong performance and quality, the JNM-ECZ series of nuclear
magnetic resonance systems has received a tremendous market
reception, and overseas sales exposure is continuing to increase.
Launched JMS-T2000GC MultiAnalyzer, a multi-ionization, unknown
compound analysis system that can be applied to increasingly
complex materials in diverse environments.

•••

Overview of the Fiscal Year Ended March 31, 2021
Net Sales by Segment

Change of Net Sales and Operating Income
Net Sales

Operating income

77,58976,644

Net Sales by Segment

Ch(millions of yen)

70,564

63.9%

21.7%
3,854
(FY) 2018

2,689
2019

1,198

(

2020

TopicsAiming for further growthPlaying a role as a place for co-creation, based on the observation ofever-smaller structures

Toyohiko Tazawa

Director& Senior Executive Officer

The focus of this business has been on perceiving ever-smaller structures. Our aim has been to contribute to
R&D across academia and industry. In our industry, as is often said, you can’t create what you can’t measure(observe). The act of observing (measuring) in R&D settings is one of the basic acts for manufacturing.
Up to now, we have devoted ourselves to observations (measurement), but we also hope to play a majorrole as a place of co-creation for manufacturing to complement our exploratory approach that uses
systematic investigative techniques. In other words, we will enable versatile and complementary analysis
that increases analytical throughput by combining various methods, making possible multifaceted analyses
based on single functions.
To create this place of co-creation while COVID-19 is still active, it is important to increase theconvenience and flexibility of our equipment in addition to making it easier to master individual functions toachieve effective throughputs in a remote work environment.
We had already been working on an initiative called the Analytical Robot = Remote + AI (artificial
intelligence) + DB (database). For this initiative we will work on further advances in analytic robotics, aiming
to create a place of co-creation that works under today’s circumstances.

●
Principles and Journey●
Our Value Creation Story

Former TEC Head Office

In June this year, we launched the sales of Synergy-ED, anultra-micro electron diffraction (ED) platform createdthrough a joint development (beginning in May last year)with Rigaku Corporation, a leading producer of X-ray
diffraction analytical instruments based in Akishima, Tokyo.
By combining Rigaku Corporation’s structural analysis
technology and equipment, such as their high-sensitivity
detectors, with our transmission
electron microscopes, we will unitet h e c o re te c h n o l o g i e s o f b o t hcompanies and provide new
solutions for single crystal structure
analysis using electron diffraction.
With structural analysis becoming
possible in the previously difficult
submicron range, we are hopeful that
our technology can be applied in thefields of materials research,chemistry, and drug development.

●
Our Business Foundation

On April 1, 2021, we completed a full merger with ourwholly owned subsidiary JEOL Technics Ltd., (TEC). TEC has
contributed to the JEOL Group as a subsidiary that primarily
develops and manufactures general-purpose scanningelectron microscopes within an accessible price range. We
have integrated TEC into our headquarters with the aim offurther boosting productivity and improving on TEC’s
development strengths. By combining our resources, we arepromoting the growth of our total electron microscopebusiness.

Launching Synergy-ED, jointly
developed with Rigaku Corporation●
Data

Strengthening development throughmergers with subsidiaries and theintegration of resources20Overview by Business Segment

Industrial Equipment Segment
Business description
In 1952, three years after our founding, we entered the industrial equipment field, starting with an induction
hardening system that applied the knowledge we had acquired from the development of electron microscopes.
Today, having now developed expertise in electron beam control and RF power supplies—cultivated as coretechnologies in the scientific and metrology instruments segment—we can now supply the industrial equipmentthat is essential for fabricating semiconductors, electronic devices, and optical components, such as electron
beam lithography systems, electron beam sources for deposition, and RF induction thermal plasma systems.
One of our initiatives to enter a new business segment is R&D for metal 3D printers that apply our electron beamtechnology. We began sales for these printers in March this year. We expect them to be used in fields that require
high levels of precision, such as aerospace, medicine, and automobiles.

Main instruments

Electron beam lithography systems
Electronic devices such as computers, smartphones, and home appliances containsemiconductor components called large scale integrated (LSI) circuits. LSI circuits haveextremely fine patterns made possible with progress on refinement and densification. Today,these patterns are 10 nanometers (1/10,000th the diameter of a human hair) or smaller.
Precise fabrication of ultrafine circuits like this requires electron beam lithography.
As demand for semiconductors grows further due to such factors as the development of an
IoT society and the dawn of the 5G era, the role of electron beam lithography systems is
expected to increase in importance.
Partnering with Austria-based IMS Nanofabrication GmbH (IMS), we are supplying multibeam electron beam lithography systems with improve throughput ahead of the global
competition.

Electron beam source for deposition

JBX-8100FS
electron beam lithography system

Electron beam deposition is a method of vaporizing metals or oxides in a vacuum using an electron beam to have themadhere to the surface of a lens, circuit board, or other component as a thin film. Our electron beam source is used to heat thematerial to cause it to evaporate. Because the power density of electron beams is high, they can vaporize various materials,
including metals with high melting points.
When a thin film is deposited onto glass or a camera lens, it creates an antireflective and infrared coating. Electron beam
deposition is also used to form electrodes and wiring film for electronic parts, LEDs, and other products. Although you may not see
it, electron beam sources for deposition play an active role as a technology that supports everyday life behind the scenes.
Main customers ........ Manufacturing industry (semiconductors, optical devices, electric machinery, electronic parts, chemistry, etc.) and research institutes
Main Products 	��������� Electron beam lithography systems, high-power electron beam sources and power supplies, electron beam sources and power
supplies for deposition, RF power supplies for plasma generation, built-in plasma sources and power supplies, RF induction thermal
plasma systems, and electron beam metal 3D printers

Market trends

for high-performance optical films for• Demandsmartphones, in-vehicle cameras, and surveillancecameras is on the risefor electron beam lithography systems for• Demandmanufacturing optical communication devices and•21

millimeter-wave devices is also increasing
Market size of semiconductor device industry, including
5G-related, 3D memory, and in-vehicle devices is
growing

Technology and product strategies

of low-defect, low-optical-loss bombardment• Launchdeposition source for infrared cameras and sensors
of markets in collaboration with related• Cultivationcompanies in new application fields: nanoparticle
synthesis and spherical powder using thermal plasmaof market for new state-of-the-art JBX• Development
8100FS spot electron beam lithography system

Overview of the Fiscal Year Ended March 31, 2021
Net Sales by Segment

Change of Net Sales and Operating Income
Net Sales

Operating income

23,845

21.7%(FY) 2018

7,374

2019

C

24,01016,606
4,985

Net Sales by Segment(millions of yen)

7,275

14.4％

2020

TopicsAddress: 2-11-1 Inadaira, Musashimurayama-shi, Tokyo

Aiming for further growth

Electron Beam Metal 3D PrinterJAM-5200EBM

JEOL industrial equipment supports the production of semiconductors
and electronic devices

Tadashi Komagata

Senior Executive Officer

In the industrial equipment segment—based on applied electron beam technology developed with electron
microscopes at the core—we develop, manufacture, and sell electron beam lithography systems used in the
fabrication of semiconductor chips, the electron beam deposition equipment necessary for coatings on
optical components, as well as related components.
Enormous numbers of electronic devices are necessary in our ultra-high-speed communication society
and for the expanding 5G (fifth-generation communications) network. Our products are indispensable for
their production, so we will continue to quickly develop and provide systems to meet requirements.
The multi-beam mask writer that we developed jointly with Austria-based IMS is already a leading device
for the fabrication of photo masks in the age of extreme ultraviolet (EUV) lithography, bringing a seismic shift
from single-beam to multi-beam systems.
Our electron beam metal 3D printer has also at last entered the mass production machinery market. We
expect to bring about a revolution in the production of essential components that demand strength andreliability. Through this printer, we are supporting the creation of groundbreaking products not only foraerospace, but for a wide range of industrial fields.

●
Principles and Journey●
Our Value Creation Story

We applied the electron beam technology developed forour scientific and industrial instruments to metal 3D
printers and have succeeded in commercializing them. We
are employing a system in these 3D printers that uses anelectron beam to melt and layer metal powders, such astitanium. Complex shapes
can be produced that wered i ffi c u l t to m a ke u s i n gconventional production
methods. We expect these
metal 3D printers to be usedin areas with high added
value, such as aircraft turbine
blades or prosthetic joints inthe field of medicine.

●
Our Business Foundation

Last year, we announced that a new plant had beenacquired to boost our production capacity for products
such as electron beam lithography systems, which haveseen increasing demand. Preparations for the production
system have moved ahead, with production planned to
begin in the second half of this fiscal year. Multi-beamlithography systems are also experiencing strong demand,
and we will improve our production line to increase thenumber ofunits that canbe made.

Sales launch for metal 3D printers
Achieving high-quality shapes withstrong reproducibility●
Data

Launch of production for electron beamlithography systems at the new plant in
the second half of this fiscal year

22Overview by Business Segment

Medical Equipment Segment
Business description
In 1972, we released the first clinical chemistry analyzer by applying the measurement technology we acquired
during the development of analysis and inspection systems for the medical field. The series was called
Clinalyzer, and by expanding the lineup and developing products matching requirements, these analyzers
became more common, and we contributed to medical progress and helped maintain people’s health.
In 1996, this was replaced by the BioMajestyTM series featuring an enhanced analysis method, better
economic efficiency, and improved processing. This series remains available today.
As part of our YOKOGUSHI strategy, we partnered with FUJIREBIO Inc. to link our system with theirs, providing
integrated immunological and biochemical testing. In this and other ways, we address increasingly diverse
clinical testing needs.

Main instruments

Clinical chemistry analyzers
Measuring sugar, cholesterol, protein, and other components in blood, urine, or otherfluid samples is useful for discovering diseases and managing health. In recent years,
services have been made available for individuals where blood samples are taken athome and mailed to a lab for results. The evolution of clinical chemistry analyzers has
greatly contributed to blood testing becoming a familiar routine.
Our BioMajestyTM series of clinical chemistry analyzers has been delivered tosmall and medium-sized hospitals, testing centers (private companies specializing inanalysis), and large hospitals, such as university hospitals. Using a proprietary
method for diluting samples, we now minimize sample volume and reduce theamount of reagents required. This alleviates the physical stress placed on patientsand contributes to lowering running costs for medical institutions.
Through ultra-micro measuring and ultra-high-speed processing technology, theBioMajestyTM series supports medical progress.

BioMajestyTM JCA-BM6070G

Laboratory information systems
This information solution helps increase efficiency and introduces IT to the frontlines of medicine by linking and managing all
the data involved in clinical chemistry analyzer operations. The centralized management of everything from receiving samples
to testing and reporting by the system allows for fast and accurate processing.
All the data from testing, including when the test was performed, who made the request, which device was used forregistration, and who approved it, is stored by item, ensuring traceability in clinical testing.
Main customers ........ Hospitals, clinical testing centers, and reagent manufacturers
Main products .......... Clinical chemistry analyzers, laboratory information systems, fully automatic amino acid analyzers

Market trends

Demand has fallen for new clinical chemistry analyzers• andimmune assay systems due to a reduction in blood
tests being performed for medical checkups as a resultof the impact of COVID-19

Technology and product strategies

of flagship BioMajesty™ JCA-BM6070G• Launchmodel offering IoT support and improved reliability,
functionality, and safety

some of our staff to a Belgian subsidiary and• Assigning
installing demonstration machines to promote overseas
expansion via our own brand and distributors

steady profits by further strengthening• Promoting
solutions businesses (sales of reagents, consumables,
services, etc.)23

Overview of the Fiscal Year Ended March 31, 2021
Net Sales by Segment

Change of Net Sales and Operating Income
Net Sales

Operating income

17,093

16,75514.4％
1,961(FY) 2018(millions of yen)

15,866

1,407
2019

945
2020

TopicsRecognizing the importance of medical care and providing solutions
that protect people’s health

Kiyotaka Fujino
Corporate Officer

With COVID-19 having spread now for one and a half years, few people would have expected its impact tohave reached such a level throughout the world. Our company has once again recognized the importanceof protecting people’s health, and we are striving to strengthen our efforts toward helping to achieve Goal 3of the 17 SDGs: Good Health and Well-Being.
There are many health risks today. Medical treatments are becoming increasingly complex as weunderstand the causes and mechanisms behind infectious diseases and the three major lifestyle-relateddiseases. Solutions for accurate diagnosis and the equipment and materials needed to provide diagnostic
information to medical professionals are crucial, and greater speed is also being asked for. If a one-stop
solution for these processes can be provided, it will assist in the early detection of diseases as well as earlier
treatment. We will employ IoT and digital transformation (DX) to swiftly provide findings and analyze
quantities of test data that would be difficult to process manually. As automation tends to diminish
communication with medical professionals, we are proactively providing information and conducting
seminars for them. A support system for medical institutions is also essential in light of the increasing risk
from disasters, such as earthquakes, and damage from storms and floods. By providing support not just inJapan, but on a global scale, we intend to fully achieve the SDGs goal of Good Health and Well-Being.

●
Our Business Foundation

Aiming for further growth●
Our Value Creation Story

Showroom of JEOL (EUROPE) B.V. (Zaventem, Belgium)●
Data

Further growth in healthcare is expected from the European
medical equipment market, against the backdrop in Europe ofhigh standards for medical care and a mature market. Growth isalso expected in other regions, given the development of a
medical infrastructure in tandem with economic growth andgrowing populations in regions such as the Middle East, Eastern
Europe and Russia. To strengthen our sales and services in theseregions, we have established a new showroom and warehousefor our Belgium subsidiary JEOL (EUROPE) B.V. Three newmodels have been installed in the showroom, and in addition togiving demonstrations of our equipment, we are providing fast,
effective training for our distributors, with the aim of promoting
sales. We are also reducing delivery times for products throughnew warehousing and logistics strengths, hoping to further boost
customer satisfaction.

●
Principles and Journey

Accelerating business expansion in theEuropean medical equipment market

24New Services
Promoting the wider use of technology in society

O nl i ne
The number of companies and organizations encouraging
employees to work from home is increasing in response to
the COVID -19 pandemic. Currently face-to -face sales andinteractions at exhibitions and other events are difficult, so there
is demand for solutions that make full use of the Internet. To
prevent customer research and analytical operations from falling behind, we are expanding
our online support and working to maintain customer relations via the Internet.

1 Online demonstrations

We introduce systems and provide operating instructions over the Internet to customers considering their adoption. These
are Web conference-based sessions that allow bi-directional discussions without needing to visit our company.

2 Online exhibitions

Many exhibitions and academic conferences have been canceled or postponed to prevent the spread of COVID-19. We
publish the panel discussions, catalogs, technical material, and more that we had planned for these events on our
website, where they can be viewed from anywhere at any time. We are also working on publishing videos of the seminars
and lectures that were planned so that they can be watched online.

3 Webinars

We provide live streams of seminars (webinars) where we provide information useful for research and analysis, including
operating our equipment, analytical know-how, and information on the latest technologies and products. After thewebinars, we focus on follow-up with participants, including online question and answer sessions. Additionally, we are
actively putting together an archive of recordings from past seminars.

4 Web content

We are working to improve our online educational content to give back to society by sharing the knowledge andtechnology we have cultivated and to promote learning even when it is difficult to leave home. This includes publishing
JEOL NEWS, which summarizes the latest research results, glossaries explaining academic and technical terminology
related to scientific and metrology instruments, and on our website we publish Introduction to JEOL Products, easy-tounderstand explanations of the principles and application of our products for beginners.

SharingMoving from ownership to use of analytical instruments. With our sharing service, we promote
the use of high-end equipment.
As science progresses, demand is on the rise for using the high-end scientific and metrology instruments required for cuttingedge research, including nanotechnology and material analysis. On the other hand, there are many challenges when it comesto universities, companies, and public research institutes purchasing and maintaining high-end equipment on their own withlimited budgets.
In response, we launched a metered rate sharing service in 2018 that allows use of our equipment on an as-needed basis,
reducing the burden of initial investment and running costs. By providing the best analysis via sharing to customers that had
previously given up on adopting high-end equipment due to budget constraints, we are capturing demand and continuallystrengthening relationships with customers. With various plans, contracts are flexible, including remote operation plans offeredover the Internet so that customers do not need to come to our facilities, and concierge services are provided by our expert staff.
Through our sharing service, we will build a new business model by proposing value in keeping with the current trend in a25

Contracted Ser vices
We provide the experience and results we have cultivatedover our more than 70 years through a contracted analysis
service.
We address varied needs with the latest equipment andanalytical know-how, as only a manufacturer can.

1 Contracted analysis

We measure, observe, and analyze samples provided by customers. Our comprehensive support of customer research
includes everything from recommendations on methods of analysis to advice on the results of analysis.

Customers can connect with expert operators via the Internet. Conditions for observation and analysis can be
specified while checking the status in real time via video without visiting our facilities. The data obtained isdelivered quickly and safely via online storage.

4 Sample preparation

Preparation of high-quality samples is essential for obtaining good analytical data. Our experienced staff use the latest
equipment to prepare samples on behalf of the customer according to the requirements for analysis.

5 Customized lectures/sample preparationlecturesWe offer lectures according to customer requests as well as person-to-person lectures on sample preparation.

shift from products to services and addressing diverse needs on the frontlines of research.
Since fiscal year 2019, our sharing service was awarded with the Accreditation of Partnership on Research Assistance
Service certificate by the Ministry of Education, Culture, Sports, Science and Technology.
Equipment available via sharing service

Accreditation of Partnership
on Research Assistance Service(A-PRAS) logo

JNM-ECZ600R/JNM-ECZ800R
nuclear magnetic
resonance systems

JEM-ARM200F
NEOARMex atomic resolution
analytical electron microscope

JAMP-9510F
field emission Auger microprobe●
Our Value Creation StoryNew!

●
Our Business Foundation

3 Online remote analysis●
Data

Our customers can come to us and consult with expert operators on site as they conduct analyses according to theirrequirements. Customers can specify where to observe and what conditions to use for analysis on the spot while checking
the status.

●
Principles and Journey

2 Observed analysis

26

Our Business
Foundation

International Standards Compliance for the Environment and Quality

Unique Management System JGMSJGMS (JEOL Group Management System) is amanagement system that defines the actions that JEOL
must take to meet the requirements for ISO 9001:2015 andISO 14001:2015 certifications from an outside certification
authority. The ISO 9001 standard sets the requirementsthat help to improve customer satisfaction and the qualityof products and services; ISO 14001 defines environmental
requirements, including those for monitoring and reducing
waste and other environmental factors, as well ascompliance with environmental laws and regulations. The
JGMS contains the rules, standards, and procedures thatspecifically define the operations that integrate theserequirements with company management.

PolicyThe quality and environmental policies are clearlycommunicated both internally and externally throughmedia such as the website.
Quality and Environmental Policy
In support of our Corporate Philosophy, we are offering
advanced products and services to users of scientific andmetrology instruments, semiconductor equipment,
industrial and medical equipment, and contributing to thedevelopment of a sustainable, recycling-based society.
Commitment to Quality
In support of our mission, the JEOL Group is committed
to the role of a total solution provider, providing highquality products and well-organized services to best
serve our clients.
Continually improve products and services in crossdepartmental approach.
Promote quality control initiatives through execution andcontinual improvement of our quality management
system in compliance with international standards.
Commitment to Environmental Protection
Product development and process control that isenvironmentally friendly.
Never-ending environmental quality improvement at
every step of our business from development toproduction to service.

27

 ompliance with laws and regulations as a sociallyC
responsible global corporation.
Promote environmental control initiatives throughexecution and by continually improving our quality
management system in compliance with international
standards.

JGMS Operations
Senior management assesses the conditions, issues, andneeds—in and outside the Company—and then evaluatesrisks for basic, quality, and environmental policies. Then
precise guidance is provided to the people responsible inthe divisions. Every division then sets the goals andplans for their departments based on this guidance anddevelops, manages, and evaluates them, making
continual improvements so that the PDCA* cycle can be
implemented throughout the Company. In this way, senior
management guidance permeates all levels of theorganization. These activities are managed as one JGMS
system to ensure better products and services and toprotect the global environment.
*PDCA: plan, do, check, act cycle (continual improvements)

AuditsExternal Audits
The activities of the JEOL Group are regularly audited by an
external audit company, and the audit company provides
an evaluation of the continuing certification, including
assessment of the effectiveness and conformance withinternational standards and JGMS. The issues that arepointed out in the audits are regarded as opportunities for
improvement, and we make a full use of them as a tool formaking our business operations better.
Internal Auditing
Two internal auditing periods are scheduled every year sothat the JGMS activities conducted in every division can be
independently audited. Internal auditing is done objectively
from a neutral perspective by certified internal auditors
who have completed education and training and who meetcertification standards.
Recommendations made for improving operations
during internal audits are not limited to improvements in a
specific division, but are deployed horizontally across theCompany.

	‌Bureau Veritas Certification Holding SAS-UK Branch
Registration numbers
ISO 9001: 4380808 2.0

CSR Committee
Recently, corporations are being required to comply withregulations concerning pollution control, reduced use ofchemicals, and quality/environmental control as part oftheir corporate social responsibility (CSR).
JEOL organized a committee to address this issue
in 2006. The CSR Committee, headed by the president
and advised by JEOL's attorney, meets quarterly. The
committee’s purpose is to promote JEOL's activities tocontinually improve and reinforce compliance, quality
control, social contribution, corporate ethics, and risk
management.

in the committee specializing in that area, and a review isquickly distributed among all concerned through the
Quality Assurance Division.
For medical equipment, RA (Regulatory Affairs), alongwith QA (Quality Assurance) is responsible for the ME
quality assurance within the Medical Equipment Division,and for ensuring compliance with the various rules andregulations throughout the world.

Quality Assurance

Environmental Regulations Committees
Electro-Magnetic Compatibility

Environmental Regulations Committees

Low Voltage Directive

Environmental Regulations Committees have been
established to handle issues of environmental
regulations that apply to JEOL products, starting with the
RoHS directive.
All departments related to products, including sales,development, design, procurement, manufacturing andservice, participate and are working on legal compliance.
Laws and regulations change over time.

Technical Regulation Committees
To respond effectively to the laws and regulations in every
country, we have established special committees within the
Quality Assurance Division and are taking effective action.
Every committee considers all items related to producttechnical regulations and the latest trends in laws.
Any provisions affecting the JEOL Group are discussed

Machinery Directive●
Our Value Creation Story

Compliance●
Principles and Journey

ISO 14001: 4380809 2.0

SEMI Standards
Radiation Regulatory
Product Liability Act
Particle Safety

Medical Equipment
Business Operations

Medical Device Manufacturing Control Committee
Pharmaceutical Affairs Law Safety Management Committee●
Our Business Foundation

Headquarters and Group companies obtained the firstcertifications for ISO 9001 in December 1995 and ISO
14001 in December 2002. Since then, the certifications
have been updated and the JEOL Group companies havecomplied with the newest standards: ISO 9001:2015 andISO 14001:2015. ISO certification information is shown at
the right. You can always see up-to-date information on
the JEOL website.

Certification authority

Quality Assurance and Regulatory Affairs Department●
Data

Publication of International Certifications

28

Together with the Environment
Environmental Protection through Products
Initiatives for Product Lifecycles that Are Environmentally
Conscious
JEOL is implementing initiatives that incorporate theconcept of reducing environmental impact in every part ofthe product lifecycle, from purchasing, production to
distribution, through to operations, disposal, and recycling.
During development and design, we not only comply withenvironmental laws and regulations but we also include
the reduction of CO2 emissions as a design goal. Whenpurchasing materials, we ask component manufacturers tocomply with our environmentally preferable (green)purchasing requirements and to use effective
environmental management. In the production phase, we
strive to reduce CO2 emissions with the whole plant as wellas to ensure that waste materials are disposed of in thecorrect way. When our instruments are being used, we
ensure their stable operation through maintenance andinspections. We strive to reduce the environmental impactof these instruments during disposal but comprehensively
following the 3Rs.
Scope of JEOL product assessment
Recycle information

RecycleReuse

ReduceDesign anddevelopment

Environmentallyfriendly design
standard
Element technology

Purchase andprocurement

Production

Use

Collection /disposalGreenprocurement

Energy saving
Waste reduction
Chemicals reduction
PRTRs
Package reduction

Energy saving
MaintenanceParts replacement

3R Concepts:
RecycleReduceReuse

Environmental Contribution through Products
JEOL’s key products are ones that stimulate environmental
improvements, and they include tools that are fundamental
for R&D, instruments that improve production processes,
environmental analysis equipment, and 3D printers.
Atomic Resolution Analytical Electron Microscope(JEM-ARM300F2 GRAND ARM™2)
To both counter global warming and for economic viability,
it is essential to conduct R&D aimed at improving theperformance and reducing the size of energy devices,
including rechargeable batteries; light-emitting devices,such as LEDs and OLEDs; and semiconductor devices, such
as CPUs and IoT sensors. Analysis at the atomic level is29

necessary for the development of innovative materials forthat purpose. JEOL’s Atomic Resolution Analytical Electron
Microscope has the performance and quality to meet theseR&D needs.
High Throughput Triple Quadrupole Mass Spectrometer(JMS-TQ4000GC)
Triple Quadrupole Mass Spectrometers can detect harmful
substances in food, water, and the environment with a highdegree of accuracy and speed. JEOL’s Triple Quadrupole
Mass Spectrometer can analyze many harmful substances
at high speed and enhances the efficiency of analysis forpesticide residues.

JMS-TQ4000GC

Field Emission Electron Probe Microanalyzer(JXA-iHP200F)
Analysis of trace components contained in materials is
critical for the development and quality control of structural
materials, including high-tensile steel, which can saveenergy by reducing the weight of automobiles. The JXAiHP200F Field Emission Electron Probe Microanalyzer
meets the requirements for the high-speed, highprecision analysis of trace components. In addition, thisanalyzer contributes to environmental improvement in aw i d e ra n g e o f fi e l d s, s u c h a s re s e a rc h i n to t h e
decommissioning of nuclear reactors and research for the
exploration of natural resources.
Electron Beam Metal 3D Printer (JAM-5200EBM)
Metal 3D printers are expected to play an innovative role inboosting energy efficiency and reducing the weight ofparts for automotive vehicles and aircraft engines;
components used in
the space industry; andgenerator turbines. Our
metal 3D printers use
an electron beamsystem that can printd i ff i c u l t - t o - p r o c e s smaterials, such astitanium alloys, to makehigh-quality products.

JAM-5200EBM

RoHS Compliant Products
Since 2017, the JEOL Group has been providing
instruments that comply with the European RoHS Directive,
a directive that limits harmful substances used in making
electrical and electronic products. In addition, the numberof regulated harmful substances increased from six to ten
in July 2021, so the Group is making every effort to ensurethat our products remain compliant.
Going forward, the Group will continue to work on thedevelopment, production, and supply of products that
contribute to the environment and that are environmentallyconscious by complying with the RoHS Directive in an
increasing number of countries worldwide. At the sametime, we are reducing our environmental impact*2.

Protecting the Environment through Business Activities
Reducing Greenhouse Gases (GHGs)
Through the Energy Saving Committee, the JEOL Group is
continuing with initiatives that reduce CO2 emissions to
help attain the Sustainable Development Goals (SDGs) andcarbon neutrality in the future.

20,000SF610,000

0

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

Improving Efficiency of Energy Use
JEOL is working to improve energy efficiency, starting withelectricity and fossil fuels. Specific examples of these
improvements: upgrading to energy-saving air-conditioning
systems; introducing separate air conditioners; upgradingcleanroom equipment; adopting LED lighting; introducing
ice storage air conditioners for more effective nighttime
use of electricity; installing light-shielding sheets and films
on buildings to reduce the burden on cooling in summer;
and using heat-shielding coatings. In July 2020, a solar
power system with over 100 kW of generating capacity was
installed on the roof of Building 3 at our head office toreduce greenhouse gases (GHGs) as well as to promoteclean energy and renewable power. Some of the power
generated has been used for production.

Solar system on roof of Building 3 at the head office

Companywide initiatives aimed at reducing energy
consumption include Cool Biz and Warm Biz campaigns foroffice clothing as well as managing the amount ofelectricity used in every building.
I n Fe b r u a r y 2020, J E O L i m p rov e d t h e e n e rg y
consumption rate (index for measuring efficient use ofenergy) by 4.2% on average over a five-year period against
a target of 1% or more annually on average. This 1% ormore target—required by the Act on the Rational Use of●
Principles and Journey(FY)●
Our Value Creation Story

The JEOL Group is committed to activities to encourage environmental
protection throughout the business cycle from material purchasing,product delivery, service, maintenance, and disposal.
We form an alliance with our clients, vendors, and partners toestablish environmentally preferable purchasing worldwide. To insure
green purchasing from our supply chain, we have defined a set of rules
as the JEOL Group Green Purchasing Requirements.

(unit: t-CO2)
Energy sources●
Our Business Foundation

JEOL Group Green Purchasing Requirements [excerpts]*1
Version 5 (June 2010)

Change in CO2 Emissions●
Data

Green Purchasing
The JEOL Group communicates our environmental policies
to our clients and business partners and asks for theircooperation in complying with environmentally preferable(green) purchasing requirements.
JEOL Group companies promote the development anddesign of products that do not contain certain chemical
substances.
Our suppliers, provide services without adding specified
chemicals, and deliver goods that do not contain thespecified chemical substances, in accordance with theterms of their contracts with us. Working with our partners
based on a “green contract,” JEOL Group companies
provide, to their business partner companies, information
related to chemical regulations and help them withanalysis of chemical substance to achieve specific targets.

*1 Visit JEOL site for the entire document https://www.jeol.co.jp/corporate/envi/activity/ (Only available in Japanese)*2 Visit JEOL site for more details on our environmental projects https://www.jeol.co.jp/en/corporate/envi/report/
30

Energy and overseen by the Energy Saving Committee—isprimarily achieved by conserving energy day to day. We
also garnered the highest rank of “S” for energy savings forfour consecutive years in a system implemented by the
Ministry of Economy, Trade and Industry (METI) that
evaluates businesses every year. Also, we have beenrecognized for other achievements: the Kanto Region
Electricity Usage Rationalization Committee awarded us
the top prize for four consecutive years, from fiscal 2015 to2018, for our effective use of electricity as well as forpromoting energy conservation and we received an award
for being an excellent energy conservation business fromthe Kanto Bureau of Economy, Trade and Industry under METI
for the first year of the Reiwa era (May 1 to Dec. 31, 2019).
Our energy conservation initiatives were highlighted in
the November 2020 issue of Energy Conservation in an
essay entitled “Document: Challenge Energy Conservation.”
This monthly is published by the Energy Conservation
Center, Japan.
For the sixth consecutive year, we also earned an “S”
under an evaluation system that ranks businesses thatreflect the results of METI’s 2020 periodic assessments.
Measures at JEOL Yamagata Co., Ltd.
JEOL Yamagata Co., Ltd. is a production base of the JEOL
Group located in Tendo City, Yamagata Prefecture.
Employees of several companies on the same premises
perform all the production tasks, from parts assembly to
final production. This is part of our initiative to develop
environmentally friendly manufacturing processes. In thisway, we are reducing and/or eliminating the need for
packaging materials to transfer parts and materials
between companies as well as reducing our fuelconsumption and the exhaust gases usually associatedwith transportation.

JEOL Yamagata Co., Ltd.

31

Management of Chemical Substances▪ JEOL protects employees and prevents the illegal
distribution or leaks of chemical substances used in the
production process and during R&D. We also introduceda chemical management system in October 2019
aimed at effectively managing daily use and inventories.
Through the chemical management system, we educate
managers on the correct use of chemical substances aswell as effective ways to manage storage locations andamounts, and to ensure best management practices forchemical substances received and used.
▪PRTR Law (Pollutant Release and Transfer Register) andTokyo Metropolitan Environmental Preservation CodeJEOL uses specific chemical substances that require
reporting.
Reporting to the Metropolis of Tokyo

One of the certified reporting companies: JEOL Ltd.
(Unit: kg / year)

Substance/fiscal year (amount used)

FY 2018

FY 2019

FY 2020

1) Methanol

100

110

-

2) Acetone

-

100

-

3) Isopropyl alcohol

-

100

110

4) Sulfuric acid

100

-

-

Storage and Disposal of PCB Waste
Although the JEOL Group stored PCB waste (used in highvoltage capacitors, transformers, and stabilizers), we
regularly treated both high-concentration and lowconcentration waste. Processing of fluorescent lamp
ballasts took place in February 2020, marking the end oftreating PCB waste.
Verification of Waste Material Processing and Processing
Results
For waste materials, the main issue is to improve the rate ofrecycling, which we achieve by completely separating
waste products by the type of material, by improving therate of recycling of waste plastics, and by adopting
reusable packing crates and materials.
For the disposal of waste materials, we make every effort
to monitor the final disposal method, even for those items
that are handled outside the company grounds. We do not
rely solely on the control manifests for industrial waste.
Waste materials disposal managers ensure compliancewith the requirements of Japan’s Wastes Disposal andPublic Cleansing Act, as well as those of local regulations.
We also perform on-site checks to confirm that the disposalof waste materials is being conducted properly.

Recruitment and Human Resource Development
We continue to cultivate the DNA that we have built up overmore than 70 years by hiring new graduates, while bringing in
mid-career workers with diverse backgrounds. The open andmutual exchange of ideas between these two groups serves tochallenge the ever-evolving world of science and technology.
Comparison of Regular Recruitment and Mid-Career
Recruitment (as of March 31, 2021)
Females 7%
Mid-Career
Recruitment Regular
40％ Recruitment

Males 52%

60％

Females 8%

Ratio of Females among New Graduates Recruited
Male employees

40

20％

20

10％

FY 2020

0％

FY 2021

FY 2019

FY 2020

No. of male employees

27

27

44

No. of female employees

6

11

12

18.2 %

29.0 %

21.4 %

Ratio of females (%)

1.3%

1.2%

Initiatives to Safeguard Health
We believe that the mental and physical health of
employees are important management issues, so JEOL
practices effective health management, including
promoting our Health Management Declaration both insideand outside the Company.
Almost every employee receives a medical exam every
year. Our resident industrial physician pays close attention
to the daily health of employees.
Further, over 90% of employees undergo stress checks
every year to help prevent mental health problems. We havealso established multiple points of contact to provide
counseling and support, which includes talking with anindustrial doctor specializing in mental health or getting advice
from people outside the Company via telephone or email.

30％

FY 2019

1.4%

Ratio of females

60

0

FY 2020

FY 2021

Promoting Diversity
JEOL recruits people regardless of their gender, nationality,
age, or disability to create an organization where everyone can

FY 2018

FY 2019

FY 2020

Health checkup participation rate

99%

99%

99%

Stress check exam rate

92%

91%

94%

Initiatives for New Workstyles
JEOL encourages all employees to take paid leave to reacha balance between their work and their private life. In fiscal
2020, all employees took the five days of paid leave
required by the national government, with the average
number of days of paid leave being taken reaching 11 per
employee. Further, in January 2021, a “paid leave by thehour” system was introduced to respond to flexible working
hours and to suit diverse lifestyles.

●
Our Business Foundation

Female employees

FY 2019●
Data

Males 33%

Job Turnover Rate

FY 2018●
Our Value Creation Story

To ensure that we live up to our company philosophy
for sustainably, we are striving to secure outstanding
employees that have diver se under standing andperspectives. As well, we will provide an environment forthem to maximize their abilities. In addition, we are working
to maintain and improve our business activities by creating
an environment in which employees can work safely and ingood health, and that enables a variety of workstyles.

play an active role. The fact that JEOL is a company where
people can work with peace of mind for a long time isreflected in our low turnover rate in recent years.
In July 2019, JEOL received Eruboshi certification (2nd level)from the Ministry of Health, Labor and Welfare in recognition of
our accomplishments in advancing women in the workplace.
We emphasize the hiring of females, and in recent years female
workers have accounted for approximately 20% of new
employees. In addition, the rate of employees who takechildcare leave and return to work is close to 100%. Many
employees make use of a shortened work hour system, etc.
after returning to work following childbirth and childcare. We
also established a job return system in January 2019. We
support a work and family life balance byintroducing a return-to-work registration systemtargeting employees who need to stop work forreasons such as childcare or nursing care.

●
Principles and Journey

Together with Employees

32Together with Local Communities
Contributions to Society
Science Education Support Classes
The Science Education Support Class program was started
in October 2007 as part of the commemoration of the
JEOL Group’s 60th anniver sar y. Initially, sciencedemonstrations for students took place at nearby
elementary schools, but this has since grown to include
teachers, and is now being conducted at a variety of sites,
not just elementary schools. Through FY 2020, 602
demonstrations have been performed over 359 days.
Science Education Support Class programs are mainly heldin classrooms by demonstrators sent from the JEOL Group
using a NeoScopeTM benchtop scanning electron microscope.
Students are able to observe pollen, insects, and themechanisms of the body in detail. Students seeing electron
microscope images for the first time display a lot of interest,
making comments such as, “It was so interesting to see thebugs so clearly and the different pollen shapes,” and “I really
liked being able to see what goes on inside the human body inthe microworld.” By participating in local community events
and workshops for elementary and junior high school teachers,
we hope to provide many people with the opportunity to
become more familiar with the microscopic world.
Examples of program locations include:
Musashimurayama City Raizuka Elementary School (Tokyo)
Iwakuni City Micro Life Museum (Yamaguchi Prefecture)
Student Workshop with Researchers Involved in CuttingEdge Technology (Hiroshima Prefecture)
Akiruno City Masuko Elementary School (Tokyo)
Hamura City Shorin Elementary School (Tokyo)
Akiruno City Higashi Akiru Elementary School (Tokyo)
In 2020, there were also visits to two elementary schools
in Ishinomaki City and two in Kesennuma City to work withchildren affected by the Great Eastern Japan Earthquake,as well as a visit to an elementary school in an area
affected by the recent heavy rains in the Tohoku region.
In the future, we hope that the everyone, including
teachers, students, and the general public, will become
more interested in science.
Starting in fiscal 2015, the JEOL Group collaborated with
universities and other businesses to increase the number ofchildren with an interest in math and sciences through a twoyear special support program organized by the Tokyo Board of
Education. After the end of the Tokyo Board of Education
program in 2017, JEOL continued activities through a Math &Science Special Support Program organized in Hino City. JEOL
Group instructors use NeoScopeTM benchtop scanning electron
microscopes to hold science education support classes. In
2020, one elementary school and one junior high school in

33

Hino city were visited (12 classes with 448 students) giving
the children a chance to experience the microworld using
an electron microscope.

Science Education
Support Class in
TohokuElectron microscopeexperience at Higashi
Akiru Elementary School

Support for the Kazato Research Foundation
The Kazato Research Foundation was established in 1969
to commemorate the 20th anniversary of JEOL Ltd. The
foundation is supported by a contribution from Kenji Kazato,
the founder of JEOL Ltd. The purpose of this organization isto promote the research and development of electron
microscopes and other related instruments, as well as
applied research using these instruments (for medical
science, biology, physics, chemistry, materials science,nanotechnology, and other disciplines). The foundation has
helped many young researchers over the years, and JEOL
continues to support the foundation’s activities with annual
donations. (https://www.kazato.org/english/)
The young researchers below received awards in FY 2020.
Kazato Prize
Takeshi Noda

(Professor, Institute for Frontier Life and Medical Sciences, Kyoto University)“Elucidation of virus replication mechanisms by using electron microscopy”

Yuki Kimura(Associate Professor, Institute of Low Temperature Science, Hokkaido University)“In-situ observation of dynamics of nucleation from ionic liquid solution bytransmission electron microscopy”

Kazato Research Encouragement Prize
Yongchan Lee(Postdoctoral Fellow, Max Planck Institute of Biophysics, Department of Structural Biology)“Structural pharmacology of amino acid transporters by cryogenic electron
microscopy”

Shingo Hirashima(Lecturer, Department of Anatomy, Kurume University School of Medicine)“Three-dimensional ultrastructural analysis of heterologous cellular network
associated collagen fiber and bone using array tomography”

Rintaro Takahashi(Assistant Professor, Graduate School of Engineering, Nagoya University)“In-situ observation of polymersome formation in an ionic liquid”

Takehito Seki

(Associate Professor, School of Engineering,The University of Tokyo)“Development and application of ultra-high sensitive atomic-resolution imaging
using a high-speed segmented STEM detector”
Prize winners are expected to play active roles in the fields of materials research and life sciences.

❸ Crossing guards and patrols are provided on the roads
around the company during the traffic safety
campaigns in the spring and autumn. The goal is not
only to prevent traffic accidents during the commute toschool by the young students, but also to improve thebehavior in traffic of our employees.
❹ We participate in local festivals, social gatherings andevents. In particular, for the local Autumn Festival, abenchtop scanning electron microscope was preparedat the festival site to allow visitors to see magnified
images of insects and other objects.

Don’t Litter Campaign rally

Participation in the Akishima Environment Consideration
Enterprise Network
The activities of the Akishima Environment Consideration
Enterprise Network started in April 2005, with 16 member
organizations. By April 2021, this organization grew toinclude 36 member enterprises. JEOL has been involved as
an executive member since the inception of this network.
During a restructuring of the organization between FY2009 and FY 2010, JEOL chaired the network, continued in
the role of vice-chair for FY 2011 and FY 2012, and as
executive secretary in 2020, all the while promoting
environmentally friendly activities and practices incollaboration with network members.
The network’s activities are low profile, and we intend tokeep promoting environmentally friendly practices in local
communities.

Traffic safety on school commuting routes

Students from Yamagata City elementary school●
Principles and Journey❷ ‌Factory tours are offered to provide opportunities to see
the products being produced. In FY 2019, 260 visitorsfrom 14 organizations visited our site.

●
Our Value Creation Story“It was depressing to see cigarette butts and other trashlittering the sidewalks around the company, and along thepaths to the train station. Believing that there must be
something that we could do, something that we should do,
we began to regularly clean the commuting routes. The
name given to this cleanup drive activity is the Don’t Litter
Campaign.

❶ We are accepting on-the-job trainees from high schools
and colleges every year and provide factory and carrier
experiences to assist the development of humanresources and professional awareness.

●
Our Business Foundation

Don’t Litter Campaign (Commuter Route Cleanup Drive)
The Don’t Litter campaign is a volunteer community service
that JEOL employees have been performing since 1994, and it
has become a regular part of our routine. About once every
two months, employees take part in these cleanups during
their morning commute.
Employees will continue these activities, never forgetting
the original spirit and enthusiasm that prompted the startof the Don’t Litter campaign.

Activities at JEOL Yamagata Co., Ltd.
JEOL Yamagata Co., Ltd. has earned the goodwill of thepeople of nearby Tendo City, Yamagata Prefecture. To
continue doing business for many years to come, thefollowing initiatives are being undertaken.

●
Data

Local Communities

34

Management Team (As of June 25, 2021)

35

Gon-emon Kurihara ①

Izumi Oi ②

Koichi Fukuyama ③

Chairman & CEO

President & COO

Director & Senior Executive Officer

Apr. 1971 Joined the Company
Apr. 2000	‌General Manager of Medical Sales DivisionJun. 2002 Director
Apr. 2004	‌Assumed the position in charge of sales
Jun. 2004 Managing Director
Apr. 2005 Head of Sales DivisionJun. 2005 Senior Managing Director
Apr. 2006	‌Assumed the position in charge ofanalytical instruments
Jun. 2006 Director and Senior Executive Officer
Jun. 2007 Executive Vice President
Jun. 2008 President
Apr. 2012	‌Assumed the position in charge of overallmanagement (to the present) andCorporate Planning & Strategy OfficeJun. 2019	‌Chairman and Chief Executive Officer(CEO) (to the present)

Apr. 1986 Joined the Company
Apr. 2012	‌General Manager of Management
Strategy Planning OfficeJun. 2013 Corporate Officer of the Company
Jun. 2015 	‌Director and Corporate Officer of theCompany
Jun. 2016	‌Director and Executive Officer of theCompany
Apr. 2019	‌Assumed the assistant position in
charge of overall management
Jun. 2019	‌President and Chief Operating Officer(COO), in charge of overall management(to the present)

Apr. 1982 Joined the Company
Apr. 2005	‌General Manager of Management Strategy
Planning Office
Apr. 2006 	‌General Manager of Internal Auditing
Division
Jun. 2006 Corporate Officer
Jun. 2009 Director and Corporate Officer
Jun. 2011 Director and Executive Officer
Apr. 2016 	‌Assumed the position in charge of sales (tothe present) and the position in charge ofbrand strategy
Jun. 2016	‌Director and Senior Executive Officer (tothe present)
Apr. 2017	‌Assumed the position in charge of brandcommunication
Apr. 2018	‌Assumed the position in charge of theBusiness Operation Center (to the present)

Satoshi Nagakubo ⑦

Koji Nakao ⑧

Ryuji Kanno ⑨

Outside Director

Outside Director

Outside Director

Jun. 2001	‌Executive Officer of Nissho Iwai Corporation(currently Sojitz Corporation)
Jun. 2003	‌President and Representative of Nissho
Iwai Plant Equipment Co., Ltd. (currently
Sojitz Machinery Corporation)
Jun. 2009	‌Director and Chairman of Sojitz Machinery
Corporation
Oct. 2012 Corporate Adviser of the Company
Jan. 2015	‌Representative Director and President of
HR Consultant Co., Ltd. (to the present)
Jun. 2016	‌Outside Director of the Company (to thepresent)

Jun. 2007		Jun. 2010		
May 2011
		
Apr. 2013		
Feb. 2017		Jun. 2018		
Nov. 2019		

Director and Senior Managing Executive
Officer of Terumo Corporation
Director and Executive Vice President ofTerumo Corporation
Chairman of the Board of Terumo
Corporation
Chairman of The Japan Federation of
Medical Devices Associations
Representative of Art Management
Shimanami (to the present)
Outside Director of the Company(to the present)
Advisor to Biodesign Japan(to the present)

Nov. 1999
		Feb. 2007
		Feb. 2008		Jun. 2018
		
Sep. 2019		
Sep. 2020		
May 2021
		Jun. 2021

Recently appointed

President of Yokogawa Analytical Systems Inc.
(currently Agilent Technologies Japan, Ltd.)
Vice President and Representative Directorof Agilent Technologies Japan, Ltd.
President of Human Metabolome
Technologies, Inc.
Nonexecutive Director of Rigaku Corporation(present position)
Chairman of the Board of Human Metabolome
Technologies, Inc.
Senior Advisor at Human Metabolome
Technologies, Inc. (present position)
Advisor at SAMURAI Biotech Association(present position)
Outside Director of the Company (to the present)Toyohiko Tazawa ④

Atsushi Seki ⑤

Katsumoto Yaguchi ⑥

Director & Senior Executive Officer

Director & Executive Officer

Director & Executive Officer

Feb. 1984 Joined the Company
Apr. 2009 General Manager of SA Business Unit
Jun. 2011 Corporate Officer
Apr. 2013	‌Assumed the position in charge of Advanced
Fundamental and Core Technology Center (to thepresent)
		‌Peripheral Equipment, SA, SM, & IB Business Units, incharge of SA & SM Design & General Manager of IB
Business Unit
Jun. 2013 Executive Officer
Apr. 2014	‌Assumed the position in charge of MS Business Unit
(to the present) and EM Business Unit
Apr. 2015	‌Assumed the position in charge of R&D
Management Center (to the present), Scanning
System Business Operations, Design Management,
and Cost Center
Apr. 2016	‌Assumed the position in charge of Application
Management Department and 3D Additive
Manufacturing Business Project (to the present)
Jun. 2016 Director and Executive Officer
Apr. 2018	‌Assumed the position in charge of administration ofdevelopment technology and intellectual property(to the present)
Jun. 2018	‌Director and Senior Executive Officer (to thepresent)
Apr. 2019	‌Assumed the position in charge of EX Business Unit
(to the present)

Apr. 1983 Joined the Company
Oct. 2009	‌Assistant General Manager of General
Affairs Division,General Manager of
Human Resources Dept., andManager of Recruitment and TrainingGroup
Apr. 2012	‌General Manager of General Affairs
Division
Jun. 2014 Corporate Officer
Apr. 2015	‌Manager of Internal Auditing Division(to the present)
Apr. 2018	‌Assumed the position in charge ofGeneral Affairs (to the present)
Jun. 2018	‌Director and Executive Officer(to the present)

Apr. 1982
Jun. 2011		
Apr. 2016
		Jun. 2016		
Apr. 2021
				Jun. 2021
		
		

⑧

⑩
②

④

⑫

⑥

Kazunori Fukushima ⑩

Mitsuru Takahashi ⑪

Akifumi Goto ⑫

Norio Kuroiwa ⑬

Kazuyuki Nakanishi

Audit & Supervisory Board
MemberAudit & Supervisory Board
MemberRecently appointed

Outside Audit & Supervisory
Board Member

Outside Audit & Supervisory
Board Member

Substitute Audit &Supervisory Board Member

Senior Executive Officers

Executive Officers

Corporate Officers

Atsumi Nakamura

Yoshihiro Ohkura
Hiroaki Fukuda
Yasuo Hijikata
Akihiro Kobayashi

Tadashi Okubo

Masayuki Kobayashi

Shintaro Yazuka

Hirohisa Yoshida

Kiyotaka Fujino

Toshihiko Kanayama

Toshikatsu Kaneyama

Chikato Teramoto

Tadashi Komagata

Osamu Wakimoto●
Principles and Journey⑦①●
Our Value Creation Story③●
Our Business Foundation⑤

Joined the Company
Corporate Officer, General Manager ofFinancial Affairs DivisionCorporate Officer, Managing Directorof JEOL USA
Executive Officer, Managing Director of
JEOL USA
Executive Officer, second in charge offinance, IT, and export trade control,
Managing Director of JEOL USA
Executive Officer, in charge of finance,
IT and export trade control(to the present)

●
Data

⑨

⑪

⑬

Recently appointed

36

Corporate Governance

Basic Approach
JEOL’s basic approach to corporate governance is to build a stable profit structure and to realize basic
management policies that focus on enhancing corporate value while achieving future-oriented
development and growth. These goals will be reached by implementing various measures, including
setting up an organizational management structure with efficient, highly transparent management that
upholds our responsibility to respect the position of shareholders and all other stakeholders.

Board of Directors [Decision Making / Supervision][Appointment / dismissal][Appointment / dismissal]

Business audit
Accounting audit

Chairman & CEO

Accounting audit

President & COO

Management Council

Executive Officer
Audit

Board of Directors

15

Management Council

51

Executive Officers’ Meeting

8

Audit & Supervisory Board

20

CSR Committee (internal audit function)

Compliance Reporting Hotline

Management / Sales / Technology / Manufacturing / Service Divisions

Internal Control System
Internal Control System Status
Listed below are the systems that ensure that the executionof duties by directors adhere to all laws, regulations, and
the Articles of Incorporation as well as other systems(internal control systems) that ensure the appropriatenessof operations by the Company and the corporate Group,comprising the Company and all subsidiaries.
Internal Control System Overview❶ System for storing and managing information on theexecution of duties by directors❷ Rules and other systems for risk management toprevent loss

Accounting Auditor (audit firm)[Appointment / dismissal]

Number of Major Meetings Held during
the Fiscal Year 2020

37

[Appointment / dismissal]

General Meeting of Shareholders

General Counsel[Appointment / dismissal]

Business Supervision Office

Corporate
governancesystemAudit & Supervisory Board (Audit & Supervisory Board Member)

Corporate Governance Structure❸ System for ensuring the efficient execution of duties bydirectors❹ System for ensuring that the execution of duties bydirectors and employees complies with all laws,
regulations, and the Articles of Incorporation❺ System for ensuring the appropriateness of operationsin the corporate Group comprising the Company andall subsidiaries❻ Matters related to the employees who support theduties of Audit & Supervisory Board members whenthose members request their assistance❼ Matters related to the independence of the employees
from directors (stated in the preceding item) andensuring the effectiveness of instructions given by Audit& Supervisory Board members to employees❽ System for reporting to Audit & Supervisory Board
members by directors, etc. and other systems relating toreports to these members❾ System for making sure that people who have madereports, as provided in the preceding item, will not betreated unfavorably after making a report Matters related to policies for the procedure ofpayments made in advance or reimbursement ofexpenses in the execution of duties by Audit &Audits at affiliated companies (guided by the Internal Audit
Rules for Domestic Affiliated Companies) are conducted toensure full legal compliance within the Company and ataffiliated companies and to improve management
efficiency. For operations overseas, Tokyo meetings are held
twice a year to achieve mutual understanding throughdialogue. In addition, internal auditing has beenstrengthened and a business supervision office (consistingof four members) has been established to supervise ourhead office and affiliated company operations, as well as toassist and coordinate with corporate auditors.

Evaluating the Effectiveness of the Board of
Directors
Since fiscal 2017, JEOL has analyzed and evaluated theefficiency of the Board of Directors to make certain that it isfunctioning effectively. Based on the results of this analysis
and evaluation, we intend to improve the overall
effectiveness of the Board of Directors through an ongoingprocess of identifying and improving on issues and by
further strengthening the Board.
The results of the Board of Directors’ analyses andevaluations in fiscal 2020 have been compiled and aredisclosed below.
Evaluation Method
S e l f - a s s e s s m e n t q u e s t i o n n a i re s e v a l u a t i n g t h eeffectiveness of the Board of Directors were completed by
all Directors and Audit & Supervisory Board members at theBoard of Director meetings held during fiscal 2020 (April
2020 to March 2021). The results were reported at theBoard of Directors meeting held on Tuesday, August 31,
2021.
Evaluation Items
Evaluation items were categorized into three areas:❶ Board composition❷ Management of the Board of Directors❸ Providing information to outside officers

Measures Taken for Issues Recognized in the Fiscal 2019
Questionnaire▪A review will be conducted of the Board of Directors
agenda standards and report content in order to focus
on the most important issues.
▪Opportunities will be created to deepen discussions on
medium- to long-term management issues.
▪ Measures will be taken to more quickly distributematerials to outside officers.
Measures to Be Taken for Issues Recognized in the Fiscal
2020 Questionnaire▪Summaries will be provided in reports.
▪Report items will be reviewed, and the focus will benarrowed.
▪ Complete explanations will be provided to outside
officers prior to meetings and discussions.
Future Responses
The Board of Directors will respond to issues based on the
results of these evaluations and will continue to makeevaluations and analyses to improve their efficiency.

●
Principles and Journey

Issues and Major Initiatives for Evaluating
the Board of Directors
Issues Raised by Questionnaire Results❶ Reviewing the scope of items to be discussed andreported on.
❷ Further summarizing and simplifying explanatory
materials.
❸ Distributing materials to outside officers more quickly
and providing them with thorough explanations prior tomeetings and discussions.

●
Our Value Creation Story

Collaboration between the Audit & Supervisory Board
Members and Internal Audit Departments●
Our Business Foundation

Summary of Evaluation Results
After reviewing the self-evaluation questionnaires for all
directors and Audit & Supervisory Board members, 17
evaluation items out of 18 were found to be above averageand the overall effectiveness of the Board of Directors wasfound to be generally maintained.

●
Data

Supervisory Board members and for other treatment ofexpenses and liabilities associated with the executionof these duties
 Other systems for checking that audits performed byAudit & Supervisory Board members are conductedeffectively

38

Executive Compensation System (Design)

The JEOL Basic Policy on Directors Compensation isoutlined below.

Basic Policy on Executive Compensation
JEOL’s executive compensation helps to motivate
management to achieve our management goals, in turnraising awareness of contributions to boost performancethrough medium- to long-term improvement of ourcorporate value. Our compensation system is designed topromote profit awareness among shareholders and to raiseawareness of shareholder-oriented management.

Compensation Composition
Compensation for directors consists of basic compensation(monetary reward) and performance-linked stockcompensation. However, outside directors who areresponsible for supervision and non-executive directors
receive only fixed basic compensation in view of their jobs.

Basic Compensation
JEOL establishes incentives for improving businessperformance after considering the business environment
surrounding the Company, the salary level of others, andsalary levels at other companies in the same industry.

Determining Basic Compensation
B a s i c c o m p e n s a t i o n i s d e te r m i n e d b a s e d o n acompensation table for every position and performanceachievement, which is prepared using the basic policy for
determining compensation. The table helps to determine
the standard compensation for every director position. This
amount can vary from 85% to 115% of the standard
amount according to the degree of achievement of key

39

performance indicators (KPIs). KPIs include those forachieving the goals for (1) consolidated net sales and (2)consolidated operating income. However, outside directors
and non-executive directors are not paid performancecompensation, and their basic compensation is set after
considering the business environment surrounding theCompany, the salary level of employees, and salary levels
at other companies in the same industry.

Determining Performance-Linked Stock
Compensation
In determining performance-linked stock compensation,
directors are awarded points that are calculated bymultiplying the position-based points (based on the basic
policy for determining compensation) by a performancelinked coefficient (50% to 170%). The coefficient iscalculated from the degree of achievement against target
KPIs: (1) consolidated operating income, (2) consolidated
ordinary profit, (3) non-consolidated operating income, (4)ROE). Note that 1 point is equivalent to 0.5 shares of theCompany. However, if an event occurs for which point
adjustments are considered justified, such as stock splits
and reverse stock splits, the number of shares per point will
be adjusted based on the split ratio, reverse split ratio, etc.
For directors living overseas, monetary compensationequivalent to the number of points is paid to them.

Structure of Director Compensation
Guided by the basic policy for determining compensation,
the ratio of basic compensation to performance-linked
stock compensation is determined with a target of 80% forb a s i c a n d 20% fo r p e r fo r m a n c e - l i n ke d s to c kcompensation. However, outside directors and nonexecutive directors are not eligible for performance-linkeds to c k c o m p e n s a t i o n , re c e i v i n g o n l y fi xe d b a s i ccompensation that does not consider their performance.

Risk Management

Status of the Risk Management System
JEOL’s risk management system complies with all laws
and regulations, and there is close cooperation among
the Management Strategy Planning Division, Internal
Auditing Division, Security Export Trade Control Division,
General Affairs Division, Financial Affairs Division, IT
Division, Intellectual Property Strategy Division, Quality
Assurance Division and other divisions. Related
committees collaborate to educate and raise awarenesswithin the Company.
The CSR Committee is also responsible for internal
control and risk management committees as well asinternal audit departments, and in response to reports
from JGMS and MDQMS, consults and makes proposals
on CSR activities and reports to the Board of Directors.
J E O L fo r mu l a te s C o m p a ny r u l e s a n d c re a te scommittees in line with Group management, including
establishing Compliance Management Rules, the JEOL
Corporate Ethics Code of Conduct, and the protection of
personal information by observing our information security
policy. We also established a compliance reporting hotline
and business continuity plan (BCP), initiatives that will
be promoted throughout the entire Group.

Risk Management Committee andInternal Audit Departments

ReportCSR Committee

Consultations
and Advice

Board of Directors

JGMS
MDQMS*To thoroughly implement the Action Guidelines / to instill corporate ethics / to develop KF activities (activities aimed at generating a good corporate culture)●
Principles and Journey

Internal Control

Prohibited employees from taking domestic and overseas business trips, in principle
Prohibited holding and participating in events, such as exhibitions and seminars
Reduced contacts among employees in staff restaurants by staggering lunchtimes
Promoted work from home and staggered work hours
Recommended holding Web (virtual) meetings
Implemented mask wearing, alcohol-based sanitizing, and temperature checks
Granted special leave for employees raising children of elementary school age or younger, or a child attending
a special needs school.

●
Our Business Foundation

To counter the risk from the COVID-19 pandemic, we held meetings of the Crisis Committee, chaired by Atsushi Seki
(Director and Executive Officer), and we have been working to build an effective management system for preventing the
spread of infections. When the government of Japan declared a state of emergency, the Crisis Committee was reformed
into the Task Force for Countering COVID-19, where the President & COO, Izumi Oi, serves as the Chairperson. In addition
to intensifying our countermeasures, we are implementing the following initiatives.

●
Data

Initiatives to prevent the spread of COVID-19●
Our Value Creation Story*Medical Devices Quality Management System

40

Messages from Outside Directors

JEOL introduced an outside director system in fiscal 2012. When appointing outside officers, theCompany makes sure every candidate meets the requirements for objectivity as stipulated in the
Companies Act and the criteria for independence as stipulated in the Financial Instruments andExchange Act, after considering the appropriate number of officers and their diversity. These
appointments are made from the perspective of maintaining sound corporate governancethrough checks of corporate management by an outside third party.
In June 2021, Ryuji Kanno was appointed as an outside director, bringing the percentage ofoutside directors in the Board of Directors to 33.3% (three out of nine directors).

Creating a JEOL loved even more by stakeholders
This fiscal year, I was appointed as an outside director. I will strive to provide a diverse range ofadvice, particularly from a customer perspective. I will do this by using my wealth of experience
gained through many years of working with companies in the same industry, and by drawing on
my experience at a highly marketing-oriented overseas-based company and my most recent
experience in the life sciences.
As an outside director, there are two key roles that I hope to fulfill. First, I will work to further
improve our corporate governance system so that it can adapt to changes in the times and thebusiness environment. Second, I will encourage transparent and rational decision-making acrossmultiple aspects of our business by offering constructive advice from the standpoint of our
stakeholders. In particular, I feel it is important that we value the views of our customers and act
from the perspective of managing risk to ensure that business opportunities are not lost.
Ryuji Kanno
Based on the principles in our company philosophy of “Creativity” and “Research andOutside Director
Development,” JEOL positively challenges the world’s highest technology, forever contributing to
the progress of both science and society through our products. To continue the sound operation of
our business, guided by this corporate philosophy, it is vital to further improve our corporate governance system for responding tochanges in the environment. It is also essential to make effective investments in strategic technology and research, as well as topromote business development and initiatives that directly and indirectly help to achieve the SDGs.
Currently, despite having hardworking and outstanding staff who have unique and advanced technological skills, our profitability isrelatively low and there is still room for improvement. Over the medium to long term, I believe that it is important to refine ourtechnological strengths and our products that have overwhelming performance advantages. These refinements can be achieved bybroadly improving our profitability at a time when the industrial equipment business segment is performing strongly and by using thefunds generated to further increase investments in technology, research, and business development. If we succeed in this, I believe that
we can transform other segments into high-value-added businesses, including the industrial equipment segment, and we can create
new highly profitable businesses. To accomplish these tasks, I will advise JEOL to build and continually implement a process fordeveloping innovative businesses that add value to our products and services, so that we can capitalize on our technology. If we can
support higher profitability, we can maintain highly technological development skills and contribute to scientific progress and societal
development.
By offering the support described above, I will strive to meet stakeholders expectations and help to create JEOL that is loved evenmore than ever.
Reason for Appointment
Due to his wealth of experience and knowledge, as well as his ability to make firm assessments of decisions by the Board of Directors,
Ryuji Kanno was appointed as an outside director under a process that emphasized objectivity and impartiality. We are confident that hewill offer direction and advice on all aspects of business management, from an independent standpoint, to assist in improving ourcorporate value.

41

Supporting the Handling of Difficult-to-See and Medium- to
Long-Term Issues by Leveraging a Third-Party Perspective
Among my many duties of an outside director, I consider corporate governance as a primary theme. In
Japan, guidelines and policies are changing radically every year in this field. Amid these changes, I will
do my best to increase my understanding of the Company’s operations, particularly of the functions of
the Board of Directors; the duties of the CEO, COO, and internal directors; and the organizational
structure. I will do this from the perspectives of transparency, fairness, clear ethics, sustainability, andprofitability, and I will exchange opinions and offer recommendations on medium- to long-term businessissues, while continually examining the situation from a third-party standpoint and by applying my own
managerial experience.
As a listed company, JEOL has an exceptional corporate culture. I feel strongly that the Company ispursuing ever-higher levels of technology and making a solid contribution to advanced science. So, I thinkthat these efforts and attitude are reflected in JEOL’s history and achievements. On the other hand, looking
Koji Nakaoat the evolving times, technology, and competition, there are aspects of the corporate culture that should
Outside Director
be changed, in addition to aspects that should be maintained. I fundamentally believe that corporate
culture forms the bedrock of corporate governance. I hope to provide support so that the Company candevelop and reach the next level, while also offering advice and pointing out areas related to the corporate culture that are perhaps difficult tosee from an insider’s standpoint as well as areas that are more visible, such as financial data and aspects of the organizational structure.
Reason for Appointment
Due to his wealth of experience and knowledge, as well as his ability to make firm judgments on the appropriateness of decisions by the
Board of Directors, Koji Nakao was appointed as an outside director under a process that emphasized objectivity and impartiality.

●
Our Value Creation Story

Reason for Appointment
Due to his wealth of experience and knowledge, as well as his ability to make firm judgments on the appropriateness of decisions by the
Board of Directors, Satoshi Nagakubo was appointed as an outside director under a process that emphasized objectivity and impartiality.

●
Our Business Foundation

keep providing effective advice at the right time, based on the knowledge I have gained over approximately 50 years of being in business.

●
Data

Five years have passed since I was appointed as an outside director. In that time, an open atmosphere
has been created under the leadership of the Chairman of the Board, with discussions becoming
increasingly active each year.
As Japan recovered from the devastation of World War , JEOL established a company philosophy of"Creativity”and "Research and Development" We have grown as a company with a keen focus on using
the power of electron microscopy to allow things impossible to see with the human eye to become
visible. The Company now plays an indispensable role in advanced scientific fields in Japan and aroundthe world, and provides support to Nobel Prize laureates from behind the scenes.
On our 70th anniversary, with a view to entering into the industrial market, we took on the opportunity
to turn toward the total solutions business that not only provides exceptional products but also provides
every service that customers need, as well as by further strengthening internal and external collaboration
Satoshi Nagakubo
through the YOKUGUSHI strategy. With this combined approach, we intend to take the next leap forward.
Outside Director
Against this backdrop, although the Board of Directors has been seen as operating effectively to adegree, it is now necessary to keep the organization in tip-top condition to further improve corporate
value over the medium to long term. This can be achieved through continuing discussions on the effective appointment and dismissal of
directors; a succession plan for the next president; the creation of a suitable compensation system for executive officers; M&As; new productand business development; as well as the cultivation of new markets and corporate culture. As a member of the Board of Directors, I intend to●
Principles and Journey

Taking a Leap Forward from Science to Industry

42

Data

Consolidated Five-Year Summary

R&D costs / R&D costs to net sales

Operating income / Operating income to net sales
Operating income (millions of yen)
Operating income to net sales (%)

3.8
2.1

6,670

7,031

(yen)

R&D costs (millions of yen)
R&D costs to net sales (%)

6.0

6.0

Net income per share*2

4.7

6.1

5,224

6,130

6.5
5.8
7,184

7.3

6.6
7,757

122.95110.94

8,064
93.81

6,044

77.51

3,928
2,077
12.33
16

17

18

19

20 (FY)

16

17

18

19

20 (FY)

16

17

18

19

20 (FY)(JEOL Ltd. and consolidated subsidiaries)

For the fiscal year ended March 31

2021

2020

2019

2018

110,440

117,244

111,289

104,570

99,699Scientific and Metrology Instruments

70,564

76,644

77,58968,48066,510Industrial Equipment

24,01023,845

16,606

16,708

11,565

Medical Equipment(millions of yen)

Net sales

2017

15,866

16,75517,093

19,383

21,624

Selling, general and administrative expenses

37,66937,83435,761

33,562

32,798Operating income (loss)

5,224

7,031

6,670

3,928

2,077

Ordinary profit (loss)

6,551

7,203

7,440

4,363

1,724

Net income attributable to owners of the parent

3,745

5,360

5,940

4,532

596

Capital expenditures and Metrology Instruments

7,564

5,713

2,800

2,727

3,267

Scientific and Metrology Instruments

2,418

3,658

1,943

1,939

2,735

Industrial Equipment

4,530

1,360

517

354

178

Medical Equipment

176

303

134

284

188

Eliminations/Corporate

440

392

205

150

166

Depreciation expense and Metrology Instruments

3,626

3,191

2,755

2,668

2,526

Research and development costs

8,064

7,757

7,184

6,044

6,130

Scientific and Metrology Instruments

5,283

5,164

4,599

4,185

4,404

Industrial Equipment

1,770

1,654

1,674

1,125

787

Medical Equipment

1,011

939

910

734

939

Total assets

146,388

136,788

122,665

114,629

109,045

Total equity

51,00045,08041,59337,38732,285

At year-end*1(millions of yen)

Per share data*2(yen)

Net income attributable to owners of the parent

77.51

110.94122.95

93.81

12.33

1,055.50

933.07860.90773.84773.84

24.00

24.00

21.00

16.00

14.00

Return on equity (ROE)

7.8

12.4

15.0

13.0

1.9

Return on assets (ROA)

2.6

3.9

6.3

4.0

0.5

Total equity
Cash dividends
Common stock

Value indicators

43

(%)

Shareholders’ equity ratio / Return on equity
Shareholders’ equity ratio (%)
Return on equity (%)

32.6

33.9

33.0

Capital expenditures (millions of yen)
Depreciation expense (millions of yen)
7,564

34.8
5,713

7.8

2,800

2,727
2,526

2,668

2,755

3,189

3,626

1.9
16
(Reference)

17

18

19

20 (FY)

16

17

Overview of the Fiscal Year Ended March 31, 2021
In the consolidated fiscal year under review, the economic
conditions in Japan continued to be highly uncertain, withno end in sight for the ongoing spread of COVID-19.
Under these circumstances, the JEOL Group made an
all-out effort to tackle the strategic priorities outlined in
Triangle Plan 2022, our medium-term management planfor the fiscal years 2019 to 2021. This plan was aimed atboosting corporate value, creating a more robust
management base, and bringing in more orders and sales.
Net sales for the consolidated fiscal year under review
were ¥110,440 million (down 5.8% compared with
¥117,244 million in the previous year). Looking at profit andloss, operating income was ¥5,224 million (down 25.7%
compared with ¥7,031 million in the previous year), ordinary
profit was ¥6,551 million (down 9.1% compared with ¥7,203
million in the previous year) and net income attributable toowners of the parent was ¥3,745 million (down 30.1%
compared with ¥5,360 million in the previous year).
Overview of the Financial Position
Total assets at the end of the consolidated fiscal year underreview came to ¥146,388 million, up ¥9,600 million fromthe end of the previous consolidated fiscal year. The main
factors for this rise were a ¥4,075 million increase ininventories and higher investment securities by ¥2,697 million.
Total liabilities were ¥95,388 million, up ¥3,680 million
from the end of the previous consolidated fiscal year. The
main factor behind this rise was an increase in long-termborrowings of ¥7,510 million, despite a ¥1,886 million
decrease in corporate bonds outstanding and a ¥773
million decrease in short-term borrowings.
Total equity grew by ¥5,919 million, to ¥51,000 million,
reflecting the recording of ¥3,745 million in net income
attributable to owners of the parent. As a result, theshareholders’ equity ratio as of March 31, 2021, rose 1.8
percentage points, to 34.8%.

1819

20 (FY)

Overview of Cash Flows
For the fiscal year ended March 31, 2021, cash and cash
equivalents (“cash”) came to ¥14,482 million at the endof the fiscal year, up ¥449 million from the previous fiscal
year end.
Cash flow activities in the consolidated fiscal year underreview are shown below.
Cash flow from operating activities
Net cash provided by operating activities was ¥3,359
million, compared with ¥3,741 million provided in FY 2019.
This was mainly due to higher income before income taxes
and inventories.
Cash flow from investing activities
Net cash used in investing activities was ¥6,989 million,
compared with a net cash outflow of ¥4,172 million in FY
2019. The main reasons for this decline included
purchases of property, plant and equipment.
Cash flow from financing activities
Net cash provided in financing activities was ¥3,296 million,
compared with ¥5,395 million provided in FY 2019. Proceedsfrom long-term borrowings was the primary reason.
Outlook for the Next Fiscal Year
Looking to the future, due to the global spread of COVID-19,
we expect that our outlook will remain uncertain. Given
these conditions, we will solidly promote initiatives in linewith our medium-term management plan Triangle Plan
2022 (FY 2019 to FY 2021), and secure orders and sales,
while steadily implementing the cost improvements
needed to realize this plan.
For the consolidated operating forecasts for the fiscal
year ending March 31, 2022, we expect ¥126,500 million
in net sales (up 14.5% year on year), ¥8,300 million in
operating profit (up 58.9%), ¥8,500 million in ordinary
income (up 29.8%), and ¥6,400 million in net income
attributable to owners of the parent (up 70.9%).

●
Principles and Journey

3,267

12.4

●
Our Value Creation Story

15.0●
Our Business Foundation

13.0*1 ‌“Partial Amendments to Accounting Standard for Tax EffectAccounting” (ASBJ Statement No. 28, February 16, 2018)
and related guidance have been applied from March 2019.
Management indicators and other data reflect the retroactive
application of these revised accounting standards.
*2 ‌Effective on October 1, 2018, the Company conducted ashare consolidation that changed a share unit from twoshares to one share.
		 Data for one share (net income attributable to owners of
the parent, net assets, and annual dividends) are shown here
assuming the stock consolidation occurred at the beginningof the fiscal year ended March 2017.

●
Data

29.6

Capital expenditures / Depreciation expense

44Corporate Outline (As of March 31, 2021)

Corporate Name
Address

JEOL Ltd.
1-2, Musashino 3-chome, Akishima, Tokyo 196-8558, Japan
TEL: +81-42-543-1111 FAX: +81-42-546-3353

Establishment

May 30, 1949

Capital¥10,038 million

Number of
Employees

Head Officeand Branch Offices

Consolidated: 3,198
Non-consolidated: 1,950

Head Office: Factory

Nagoya BranchTokyo OfficeOsaka BranchTokyo Second OfficeWest Japan Solution CenterTokyo Branch

Hiroshima Branch

Sapporo Branch

Takamatsu Branch

Sendai Branch

Fukuoka Branch

Tsukuba Branch

Domestic Subsidiaries
andAffiliated Companies

JEOL TECHNICS LTD.

JEOL RESONANCE Inc.

JEOL TECHNOSERVICE CO., LTD.

System in Frontier Inc.

JEOL YAMAGATA CO., LTD.

Micro Denshi Co., Ltd.

JEOL INSTRUMENTS INC.

CeSPIA Inc.

Stock Information (As of March 31, 2021)
Stock Information

Authorized shares

100,000,000

Issued shares

48,857,800

Number of shareholders

Major Shareholders

5,240
Shareholders

Number of shares (thousand)

Percentage of total shares held (%)

Nikon Corporation

4,300

8.8

The Master Trust Bank of Japan, Ltd. (Trust account)

3,943

8.1

Custody Bank of Japan, Ltd. (Trust account)

3,240

6.6

SSBTC Client Omnibus Account

2,824

5.8

MUFG Bank, Ltd.

1,504

3.1

JPMorgan Chase Bank 380055

1,306

2.7

Custody Bank of Japan, Ltd. (Trust account 4)

1,258

2.6

JEOL Mutual Prosperity Association

1,190

2.4

JEOL Group Employee Stock Ownership Association

1,044

2.1

Nippon Life Insurance Company

1,042

2.1

Ownership ratio is calculated by subtracting treasury stock.

45

Overseas
Subsidiaries

A JEOL USA, INC. [USA]N JEOL SEMICONDUCTORS KOREA Co., Ltd.[Korea]

B JEOL (EUROPE) SAS [France]

O JEOL (MALAYSIA) SDN. BHD. [Malaysia]

C JEOL (U.K.) LTD. [U.K.]

P JEOL DATUM Shanghai Co., Ltd. [China]

D JEOL (EUROPE) B. V. [the Netherlands]

Q JEOL BRASIL Instrumentos Cienticos Ltda. [Brazil]

E JEOL (GERMANY) GmbH [Germany]

R JEOL (BEIJING) CO., LTD. [China]

F JEOL ASIA PTE. LTD. [Singapore]

S JEOL (RUS) LLC [Russia]

G JEOL TAIWAN SEMICONDUCTORS LTD. [Taiwan]

T JEOL INDIA PVT. LTD. [India]

H JEOL (AUSTRALASIA) PTY. LTD. [Australia]

U JEOL GULF FZCO [UAE]I JEOL DE MEXICO S.A. DE C.V. [Mexico]

V JEOL ASIA (THAILAND) CO., LTD. [Thailand]

J JEOL CANADA, INC. [Canada]

W JEOL KOREA LTD. [Korea]

K JEOL (Nordic) AB [Sweden]

X Integrated Dynamic Electron Solutions, Inc. [USA]L JEOL (ITALIA) S.p.A. [Italy]

Y IonSense, Inc. [USA]

A
Y

X

C DE
B

J

K

●
Principles and Journey

M JEOL Shanghai Semiconductors Ltd. [China]

S
N
R
W
M P

L
U

I

T

V
O
F

G

Q

By number of shares owned

Individuals, other

Financial institutions

1 unit or more

14.1% 4,820 companies

36.0% 50 companies

0.5% 1,498 companies

Overseas
corporations, etc.
34.1%
217 companies

Financial
instruments
business operators
0.4% 37 companies

5 units or more
1.7% 1,562 companies

Less than 1 unit

10 units or more

0.0% 420 companies

5.0%
1,418 companies

10,000 units
or more50 units or more

44.3%
10 companies

1.5%
121 companies
100 units or more

5,000 units or more
9.6% 8 companies

4.9%
114 companies

Other corporations

1,000 units or more

500 units or more

15.4% 116 companies

28.7% 63 companies

3.8% 26 companies●
Our Business Foundation

By type of shareholders●
Data

Breakdown of
Shares●Our Value Creation StoryH

46

3-1-2, Musashino, Akishima, Tokyo 196-8558, Japan
TEL: +81-42-543-1111 FAX: +81-42-546-3353
https://www.jeol.co.jp/en/