ULVAC REPORT 2013
C SR & A n n u al R e p o r t

INDEX▼

About the ULVAC Group

About the ULVAC Group and Editorial Policy......................1

Corporate Profile of the ULVAC Group..................................3Interview with Top Management.............................................5

The ULVAC Group practices CSR by fulfilling its responsibilities

Toward Consistent Growth.......................................................9Technology Topics: Automobiles and Vacuum................. 11▼

to all stakeholders and contributing to society through theresearch and development of cutting-edge technologies.

Report on the ULVAC Group’s Activities............................ 15▼

Technology

ULVAC Group’s Global Intellectual Properties.................. 16

Improve the ULVAC Brand..................................................... 17

Basic Corporate Philosophy

Structural Reforms and a Consistent Procurement Activity.... 19

ULVAC Group’s Global Business Development Deeply

Entrenched in Local Region.................................................... 21▼

The ULVAC Group aims to contribute to thedevelopment of industries and science bycomprehensively utilizing its vacuum and peripheraltechnologies through the mutual cooperation andcollaboration of the Group companies.

▼

Environment

Global Environmental Management of the ULVAC Group.... 23

Environment-Friendly Products ............................................ 24
Environmental Performance of the ULVAC Group............ 26▼

Organization

Invigorate the Individuals and Organization of ULVAC via

Personnel System that Rewards Efforts and Outcomes.... 27

Management Policies

Responding to the Results of the Employee CSR

Awareness Survey..................................................................... 29
ULVAC’s Vacuum Technologies Are Supported by■ Improvement of Customer Satisfaction■ Innovative Production Technology■ Innovative Product Development■ A Free and Open Culture■ Enhancement of Corporate Value

Consistent Efforts to Ensure Good Health.......................... 30

Occupational Safety and Health........................................... 31

Global Corporate Citizenship Initiatives.............................. 33
CSR Activities for Fiscal 2012 and Targets for Fiscal 2013.... 35

Corporate Governance and Compliance............................ 37
Risk Management..................................................................... 38

Board of Directors and Auditors........................................... 39
Financial Highlights................................................................... 41
Business Overview.................................................................... 43
Stock Information...................................................................... 46

Editorial Policy

Report’s Scope and Period[Scope]CSR Report into this ULVAC REPORT for the fiscal year▼

We have integrated the previous Annual Report and theended June 30, 2013. This report is published to

While the report covers the ULVAC Group as a whole,

results and CSR activities among our stakeholders, andwe consider it an important communications tool.
■ Published:
September 2013
(Previous Japanese edition published in September 2012;
the next edition is to be published in September 2014)■ Guidelines Referenced:
ISO26000; 2010 (Guidance on social responsibility) firsteditionULVAC REPORT 2013

ULVAC REPORT 2013

[Digest]ULVAC REPORT 2013

[Full report] Japanese and English[109th Term Business Report]

any portions for which the scope differs are indicated.
[Period]
Year ended June 30, 2013 (July 1, 2012 to June 30, 2013)▼

promote understanding of the ULVAC Group’s operating

ULVAC Group

Introduction of Our Communications Tools

Portions with information relating to periods other than
the above are indicated.

(Disclaimer)

Figures shown in tables and graphs in this report may not
add up to the indicated total because of rounding. Somefigures have been revised from previous years’ data
because the scope of reporting was expanded or

Brochure
Brochure
Important ULVAC initiatives of which we want to inform all
stakeholders are summarized and reported in a brochure.

PDF
The steps taken during fiscal 2012 (from July 1, 2012 to June 30,2013) are comprehensively summarized as PDF data to promote a
deeper understanding of ULVAC’s initiatives among our stakeholders.

PDF
The business overview for fiscal 2012 is reported in an easy-tounderstand manner for distribution mainly to our shareholders.

calculating methods have been changed.
1

ULVAC REPORT 20132

Corporate Profile of the ULVAC Group■Name: ULVAC, Inc.
■Trademark: ULVAC■Head Office: 2500 Hagisono, Chigasaki, Kanagawa■Established: August 23, 1952
■Capital: ¥20,873,042,500■Number of Employees: Non-consolidated 1,289
Consolidated 6,579 (As of June 30, 2013)■Business Areas: Development, manufacturing, sale and customer support
for vacuum equipment, peripheral devices, vacuum components andmaterials for the display, solar cell, semiconductor, electronic, electric,
metal, machinery, automobile, chemical, food product and medical productindustries, as well as universities and research labs, and import and exportof various equipment. Additionally, research guidance and technicaladvising on vacuum technologies in general.

Number of Employees by Region (Consolidated)(As of June 30, 2013)

OthersMaterials

South Korea
662

FPD and PV
production

Industrial

China
1,753

equipment

equipment

North America
139

Japan 3,303
Taiwan 592

Southeast Asia
130

Components

Semiconductor and Electronic
device production equipment

ULVAC GroupULVAC, Inc.
ULVAC Group Companies in Japan Overseas ULVAC Group Companies

Vacuum Equipment Business & Vacuum Application Business

Vacuum application business▼Industrial equipment

・Vacuum heat-treating furnaces
・Vacuum melting furnaces
・Vacuum brazing furnaces
・	Rare-earth magnet production
equipment
・Vacuum freeze-drying equipment
・High-vacuum distillation equipment
・Automatic Leak TesterULVAC REPORT 2013▼


Semiconductor and Electronic device
production equipment

・Vacuum pumps
・Vacuum gauges
・Helium leak detectors
・Mass analyzers
・Thin Film Measurement
・Spectroscopic ellipsometers
・EB, RF and DC power generators

・	Semiconductor (memory, logic, power or othersemiconductors) production equipment
・	LED production equipment
・	Electronic device production equipment■ TaiwanULVAC Technologies, Inc.

ULVAC TAIWAN INC.

ULVAC TOHOKU, Inc.

Physical Electronics USA, Inc.

ULTRA CLEAN PRECISION TECHNOLOGIES CORP.

ULVAC KIKO, Inc.

■ Europe

ULVAC SOFTWARE CREATIVE TECHNOLOGY, CO, LTD.

ULVAC-RIKO, Inc.

ULVAC GmbHULVAC Materials Taiwan, Inc.

Reliance Electric Limited■ China

ULVAC AUTOMATION TAIWAN Inc.

ULVAC EQUIPMENT SALES, Inc.

ULVAC (China) Holding Co., Ltd.

ULVAC Research Center TAIWAN, Inc.

ULVAC CRYOGENICS INCORPORATEDULVAC (NINGBO) CO., Ltd.

ULCOAT TAIWAN, Inc.

ULVAC-PHI, Inc.

ULVAC (SUZHOU) CO. LTD.

■ South Korea

ULVAC COATING CORPORATIONULVAC Orient (Chengdu) Co., Ltd.

ULVAC KOREA, Ltd.

SHOWA SHINKU CO., LTD.

ULVAC Automation Technology (Shanghai) Corporation

Ulvac Korea Precision, Ltd.

RAS COMPANY, LIMITEDULVAC Tianma Electric (Jingjiang) Co., Ltd.

Pure Surface Technology, Ltd.

TIGORD CORPORATIONULVAC Vacuum Furnace (Shenyang) Co., Ltd.

ULVAC CRYOGENICS KOREA INCORPORATEDNISSIN SEIGYO Co,. LTD.

ULVAC CRYOGENICS (NINGBO) INCORPORATEDUF TECH, Ltd.

Initium, inc.

ULVAC (Shanghai) Trading Co., Ltd.

ULVAC Materials Korea, Ltd.

ULVAC ENGINEERING, Inc.

ULVAC NONFERROUS METALS (NINGBO) CO., LTD.

■ Southeast AsiaULVAC Materials (Suzhou) CO., LTD

ULVAC SINGAPORE PTE LTDULVAC Opto-electronics Thinfilm Technology (Shenzhen) Co., Ltd.

ULVAC MALAYSIA SDN. BHD.

FINE SURFACE TECHNOLOGY CO., LTD.

ULVAC Research Center Suzhou Co., Ltd.

ULVAC (THAILAND) LTD.

▼

Others■ North America

ULVAC KYUSHU CORPORATION▼

Materials

3・	Liquid crystal display (LCD) production equipment
・	Organic LED production equipment・	Inkjet printing production equipment
・	Roll coater・	Crystalline silicon solar cell production equipment
・	Compound solar cell production equipment▼

Components

FPD and PV production equipment▼
Vacuum equipment business▼▼Business Segments of the ULVAC GroupULVAC TECHNO, Ltd.

ULVAC Human Relations, Ltd.

・Sputtering target materials
・	High-melting-point materials andproduction of components・	Nano. metal inks・	Surface analyzers
・	Controllers
・	Heat analyzers
・	Mask blanks, etc.

SHINKU CERAMICS CO., LTD.

Luoyang Xinyou Magnesium Co., LTD
Hong Kong ULVAC Co., Ltd.

4

Interview with Top Management

Q1

What is your general overview of the operating circumstancesand business results for the fiscal year ended June 30, 2013?

Harsh business conditions due to stagnant FPD
and semiconductor-related capital investment
The business environment surrounding the ULVAC Group
had been expected to show considerable growth in the
FPD and semiconductor-related markets against the
backdrop of sharply expanded demand for smartphones

and tablet PC from the spring to summer of 2012.
However, capital investment for the relevant markets

showed only temporary growth and dropped at the endof the year, the contraction of PC demand continued andcapital investment for large LCD TVs remained sluggish.
The business climate for ULVAC thus saw severe
conditions as a whole.

Given such circumstances, sales of the mainstay FPD

and PV production equipment dropped, but in thesecond half and beyond, organic LED-related investment
started to be vigorous centering on China, which led to
an increase in orders received. In addition, although bothorders received and net sales decreased forsemiconductor and electronic device production
equipment, which were affected by sluggish demand forPCs, they have been on a track to recovery from the endof 2012 after an inventory adjustment relating tomemory. Sales steadily increased mainly for small vacuum

pumps in the Components segment and sales of vacuum
freeze-drying in the Industrial Equipment segment

performed well, and as such, sales of many product items
showed a steady undertone of improvement in a varietyof business fields other than electronics. Sales weresluggish in the Materials segment, reflecting thedecreased production of FPDs and semiconductors.

Consequently, the consolidated performance for the▲▲

Aiming to realize“strong ULVAC”by securingcertain and stable profits

Top Interview

such as the reduction of manufacturing costs, restricting
additional costs and streamlining fixed costs.

enabling us to keep costs within the budget.

Meanwhile, we carried out a review of several non-In particular, we implemented the“front loading”

profitable products in the Materials segment. As

measures before launching a new business task by

this step, the net loss totaled ¥3.8 billion for the current

expertise, previous data and technical specifications, allimprovement of profitability, which will lead to further

technique, that is, conducting thorough risk management

extraordinary losses were recorded in association withgathering all the relevant factors including the level ofterm. Nevertheless, this result was sufficient to ensure theof which have been stored and managed by ULVAC. This

expansion of profits in the future.

method allowed us to restrict additional costs, thereby

Explain the progress of the structural business reform plan andQ2 the newly formulated medium-term management plan.
Executing various reforms for increasing positive
factors on profit

areas closer to the respective customers by firmly

establishing the four-pillar structure consisting of Japan,

According to the Structural Business Reform Plan, we

Taiwan, South Korea and China.

positive factors on profit during the current term.

measures such as personnel system reforms, operational

have executed various structural reforms for increasing

Our development strategy involves streamlining themarketing structure toward timely product developmentthat appropriately captures customer needs and market
trends. Meanwhile, as our sales strategy, we haveestablished a sales system consisting of the ProductManager (PM) system and ULVAC EQUIPMENT SALES,
Inc., a dedicated sales company in Japan. The
establishment of ULVAC EQUIPMENT SALES, Inc. allows
us to designate dedicated sales staff to each customer

beyond the framework of operating divisions. Moreover,centering on the New Business Development establishedunder the Corporate Sales & Marketing Division, ULVAC

has begun entering new growth markets in Southeast
Asia and South America.

As for the reinforcement of cost competitiveness, weare active in reducing costs via“Simple,”“Same”and“Standard,”apart from the aforementioned cost reduction
efforts, and intend to pursue further cost competitiveness.

To expand the group-wide global production system, we
can provide low-cost and technically superior products inFurthermore, we will continue to steadily execute otherreforms, risk management and group management.

“Strong ULVAC”to be realized by reinforcing a
profitable financial position
ULVAC steadily carries out structural business reform planand has formulated a medium-term management plan,

covering period is from the fiscal year ending June 30,
2014 through the fiscal year ending June 30, 2016, as theguideline for such business structural reforms. The plan

started with a basic policy of“having enough strength left

for further growth”with the aim of“establishing a businessstructure that secures certain and stable profits.

As described above, although the targeted return tothe black in operating income was achieved, the bottom
line remained in the red for the third consecutive term.

We formulated the medium-term management plan to

declare our intention of realizing“strong ULVAC”byreinforcing our profitable financial position, which is
expected by all stakeholders including shareholders,financial institutions, customers, society and employees.

fiscal year ended June30, 2013, although orders received
increased by 9.6% year on year to ¥166.8 billion, net
sales dropped by 17.0% year on year to ¥163.4 billion.

Hisaharu Obinata
President and Chief Executive Officer

Operating income was recorded by lowering the
break-even point
Meanwhile, for consolidated profit and loss, we returnedto the black by securing ¥6.1 billion of operating income.
Gross profit to net sales increased to 22.6%, the highest

value since the Company’s stock was listed, andoperating profit to net sales improved to 3.7%. Free cash
flows also turned to the black, recording ¥17.9 billion.

These turnarounds were achieved throughcompanywide efforts to lower the break-even point inaccordance with the Structural Business Reform Plan. We
achieved a considerable effect from the businessstructural improvement, expenses being reduced by morethan 40% compared with the previous fiscal year on a

non-consolidated basis through cost reduction efforts

5

ULVAC REPORT 2013

Formulation of the medium-term management plan:

1.	Background to the formulation of themedium-term management plan

For the fiscal year ended June 30, 2013, net sales decreased
year on year mainly due to the decline or delay of customer
investment centering on LCDs and semiconductors. Although
operating income returned to the black by executing theStructural Business Reform Plan, which was formulated in 2012,
we reviewed several non-profitable products in the Materials
segment. Consequently, as extraordinary losses were recorded
in association with this step, a net loss was recorded for thecurrent term.
Given such circumstances, we will further promote businessstructural reforms to establish a financial system of securingcertain and stable profits. At the same time, we haveformulated the medium-term management plan as theguideline for conducting such structural business reform plan.

3.	Basic policies in the mediumterm management plan
Establishing the system of securing certain and stable profits

Having enough strength left for
further growth(1) Lowering of the break-even point●Establish a structure of securing certain and stable profits
even when reception of orders declines.
(2) Review of non-profitable businesses●Pursue thorough management of profitability by product(3) Reestablishment of value-creation-type business models●R einforce a earning structure and profitable financial

2. Plan period

position by improving customer satisfaction through a

From the fiscal year ending June 30, 2014 through the fiscal
year ending June 30, 2016

technologies as the core.

mechanism to increase added value with vacuum

6Interview with Top Management▲▲

Reinforcing our profitable financial position by
executing the plan in line with three basic policies

Top Interview

Targeting orders received and net sales of ¥205.0
billion, as well as operating profit to net sales of 8%collaboration of the Group companies, we carry out

received and net sales of ¥205.0 billion, operating income of

the Basic Policy for Human Resource Development. WithIn the medium-term management plan, in order toIn the medium-term management plan, we targeted orders

and have enough strength left for further growth, we will¥17.0 billion (operating profit to net sales of 8%), net income

establish the system of securing certain and stable profits
promote three basic policies: 1) lowering of the break-of ¥11.0 billion at the end of the fiscal year ending June 30,

even point, 2) review of non-profitable businesses and 3)

2016, the final year of the plan.

reestablish value-creation-type business models, we intend

with considerable growth for semiconductor and electronicreestablishment value-creation-type business models. To

To meet these targets, we expect the orders received

to prepare development plans by precisely addressing

device production equipment. Meanwhile, orders received

system. Then, we will continue to thoroughly enhance theas a whole, despite the anticipated revitalization of markets

loading”for manufacturing to ensure early launch with less

As for industrial equipment, stable orders received arecustomer needs and market trends around PM as a corevalue of our products through activities focusing on“front
risks and troubles.

for FPD and PV production equipment will likely remain flat

due to the growth of the organic LED and IGZO solutions.
expected in the markets for medical products and magnets

various initiatives toward a reborn ULVAC. First, ULVAC

substantially modified its personnel system and revisedthese measures implemented, we intend to revitalize ourorganization with responsibilities to be fulfilled byindividual employees and the change of mind-set toincreased passion and the desire for self-betterment.

Moreover, to further expand the technologies

accumulated in ULVAC’s more than 60-year history, weare committed to training the human resources who willlead the next generation with the participation of

employees of the Group companies by reinforcing our
education for engineers.

Considering preservation of the global environment as

in addition to the demand for capital investment in the

an important social task, the ULVAC Group newly

value. We intend to improve and maintain profitability byincluding hybrid and electric vehicles (EVs).

and the Environment Policy in 2012. The Group will be

product and individual customer.

after three years, will require further effort in view of theensure profits with enduring the rise and fall of capitalhas considerably lowered the break-even point in terms ofbreak-even point. We intend to reinforce a profitable

improve its profitability in the fiscal year ending June 30,

Q4 Lastly, please give your message to shareholders and other stakeholders.

achievable.

Establishing a more solid business structure tosustainably develop businesses

value while having enough strength left for further growthcurrent term. However, through the review of several non-stable business structure and developing businesses

Company to pass on distributing dividends for the third

including customers.

Meanwhile, we will review non-profitable businesses inparallel with the aforementioned improvement of added

carefully examining the“visualization of profits”by
With the above measures in place, the third initiative toinvestment in our client industries is the lowering of thefinancial position by streamlining assets.

automobile market due to the rising demand for eco cars
Operating profit to net sales of 8%, which is targeted

operating results for the current term. However, as ULVAC

net sales on a non-consolidated basis and intends to2014 and beyond, we believe that this financial target isformulated the ULVAC Group Environmental Philosophy

active with concerted efforts in developing environmentfriendly products.

O u r o p e r a t in g in c o m e r e t u r n e d t o t h e b l a c k fo r t h eContinuously growing businesses by
establishing a stable business structure
Q3 What is your opinion of ULVAC’s CSR activities?
Based on its corporate philosophy of contributing to thedevelopment of industries and science byprofitable products, a net loss was recorded, obliging theconsecutive term. We apologize to our shareholders.

comprehensively utilizing its vacuum and peripheraltechnologies through the mutual cooperation andOutline of the measures

Target values (On a consolidated basis) (unit: ¥billion)

Measures to be implemented to promote themedium-term management plan:■ Orders received(as structural business reform plan)1) Development strategy
2) Marketing strategy3)	Strengthening of costcompetitiveness4) Expense reduction
5) Plan for profitability6)	Personnel system reform
7) Slimming down8) Business reform9) Risk management10) Group business management

205
166.8

180

sustainably to solidify relationships with all stakeholders

We are confident that added value in our core vacuum

technology through the use of value-creation-type

energetic efforts. We will achieve a surplus at the bottom

to the development of society. We therefore request yourcreating capability has been considerably improved via

business models will expand our potential and contributeline and meet the expectations of our shareholders.

continued support for the future that ULVAC will create.

In addition, we will raise our development capability

and establish a foundation to enhance our corporate■ Ordinary profit■ Net income

17.0

205
163.4

We intend to gain everyone’s trust by establishing a

Nevertheless, despite the harsh environment, our profit-■ Operating income■ Net sales

through the medium-term management plan.

180

14.0
11.0
9.0
6.3

6.1

13.06
Actual14.06
Forecast

16.06
Target13.06
Actual14.06
Forecast

16.06
Target13.06
Actual14.06
Forecast

16.06
Target13.06
Actual

7.0
4.0

14.06
Forecast

16.06
Target13.06
Actual14.06
Forecast

16.06
Target△3.8
7

ULVAC REPORT 20138

Toward Consistent Growth
The ULVAC Group recognizes that it has ESG (environment, society and governance) themes related tofull-time activities and promotes these respective activities in response to the theme addressed in thefields of technology, organization and environment.

ESG themes addressedby the ULVAC Group

Businesses of the ULVAC Group●	Countermeasures against
global warming

Vacuum equipment business●	Measures to address
globalization

FPD and PV
production
equipment

Activity themes addressedby the ULVAC Group

Technology
Technology Topics:
Automobiles and Vacuum○ULVAC’s technologies that contributeto the development of automobiles

Industrial
equipment○Improve the ULVAC brand○Structural reforms and aconsistent procurement activity○Group global business development○Group global intellectual properties

Semiconductor
and electronic
deviceproduction
equipment

Environment○Development of environmentfriendly products○Environmental communication
activities●	Connection withlocal communities

9

ULVAC REPORT 2013

Vacuum application business

Components

Materials

OthersOrganization○Personnel system reforms,
education and mental health○Employee CSR awareness survey○Occupational safety and health○Corporate governance /Compliance / Risk Management○Corporate citizenship initiatives

10

02

○ Film Capacitors

EWE Series evaporation roll coaters▲

Automobiles and Vacuum

Technology▲

Technology
TopicsHere & There, Near your side
ULVAC`s Vacuum Technology!
Our life is unknowingly surrounded by a“Vacuum”environment. ULVAC provides the State-ofthe-art technology to help create such“Vacuum”world we live in.
The advancement of automobile and vacuum is very close related. We have greatly contributed
to the automobile industry playing our role to realize innovative vacuum technology. Here aresome examples;

A capacitor is an elec tronic device
that stores or discharges electricit y tostabilize voltage and remove noise. Onet ype of a capacitor is a“film capacitor”
using very thin plastic film for automobile
application.
To deposit ver y thin layer of aluminuma n d z in c o n t o t h e t hin p l a s t i c f il m (inv a c u u m) a t t re m e n d o u s hi g h s p e e drequire state-of-the-art technology.

▲

Technology

03

A neodymium magnet is one of the strongest
permanent magnet available. Neodymium
magnets are often used as key components
for various kinds of automotive motors andelectronics products. Strong demand within
environmental fields such as hybrid cars andwind generation.
The FM I Series model s are used to form
all o y s , f o r w hich t he co mp o si t io n ra t ioof neodymium, iron and/or boron being
magnetic materials are key parameters to
produce quality Neodymium magnets.

02

04

03

FMI Series vacuum melting furnaces▲○ Neodymium Magnets

01▲

Technology

04

Power semiconductors are used as switchesor rectifiers in power electronic circuits, forexample, to switch from/to alternate to/from
direct current or raise/lower voltage. Power
semiconductors feature high current capacity
and withstand voltage, less heat generationand g o o d hea t dis sipa tion. T hey are al s o
key devices for energy saving by controllingelectricity consumption.
The SOPHI-200 model is used for electrodeformation on wafers, which are the substrates
for power semiconductor devices.

Electronics and Vacuum▲

Technology

01

NA Series ashing systems and SIV Series sputtering systems▲

A light-emitting diode (LED) isa semiconductor device thatemits visible light when voltage isapplied in the forward direction.
ULVAC offers a full lineup ofequipments such as ashing andsputtering systems to manufacturehigh-intensify emission LEDs.

ULVAC’s Heat Treatment Simulator at Work in Automotive Lightweighting▲○ LEDsSOPHI-200 ion implanter▲○ Power semiconductors

Contribute Total Solutions to Meet R&D Needs

ULVAC-RIKO, Inc.

Due to the large capacity of the secondary batteries which installed in EV, PHEV and HEV,the weight of it becomes the problem. As one of the measures against this problem, making
the body of the automobile lightweight becomes more important subject. The simulationof the heat treatment process is required for the development of high tensile strength
steel. ULVAC-RIKO supply the heat treatment simulator for the simulation of the processwith high accuracy, which was difficult for the steel. The infrared lamp heating realized therapid heating, rapid cooling, controlling the temperature of the sample and generating theatmosphere.
CAS SeriesContinuous Annealing System

11

ULVAC REPORT 201312

Here & There, Near your side ULVAC`s Vacuum Technology!

Technology

07○ Heat Exchangers

FBC Series vacuum brazing furnaces▲

Automobiles and Vacuum▲

Technology
Topics

A heat exchanger is a device with whichh e a t c a n b e e f f i c i e n t l y m o v e d f ro ma high - temperature objec t to a low temperature object. For its automotive
a p p l i c a t i o n s , l i g h t w e i g h t a n d hi g hreliability are extremely important.
T h e FB C S e ri e s m o d e l s a re u s e d t obraze parts for heat exchangers usedin au t o m o b il e c o m p o n e n t s s u c h a sradiators and air conditioners.

05

Technology

08○ Reflectors

ULEYES vacuum evaporation system

▲

08

07

▲

09

Reflectors are essential to ensure safety
for driving. They help us pay attention toapproaching automobiles by reflecting
beams from the head and tail lights.
The ULEYES model is used in the pro cess to deposit reflective coatings onreflectors.

06▲

Technology

Vacuum & Future
Development for Automobiles!

05▲“ULGLAZE Systems”new plasma CVD systems for the○ Resin Glazing mass
production of automotive polycarbonate (PC) glazing
Technology▲

09○ Gasoline Tanks

Ensuring high airtightness is important for the safetyof automotive gasoline tanks. Plastic fuel tanks are
more commonly used (compared to steel tank s)with features of lightness and design flexibility.
ULVAC unique helium leak tester specifically op timized for plastic fuel tank s provide the world`shighest quality measurement results in high vacuum
condition.

Joint partner: SABIC Innovative Plastics▲

Technology

06

In-line type sputtering systems for deposition for wheels▲○ Wheels

Photo provision source: Yachiyo Industry Co., Ltd.

Technology Collaboration for Mass Production of Coating Solutions to Drive
Use of Polycarbonate for Car Windows with Exatec*▲

ULVAC’s systems deposit chrome ornickel chrome on wheels using ULVAC’ssputtering technique. Eye-filling appearance with excellent quality due to highadhesiveness. In addition, comparedwith ordinary plating technology, sputtering technique is environment-friendly
due to no waste water disposal.

Helium leak testers▲

Compared with the conventional
window glass on vehicles, PC glazing isan eco-friendly technology that reduces
the overall vehicle weight and improves
fuel consumption.
The ULGLAZE System models are usedin the processes for the deposition ofscratch- and abrasion-resistant coatings
onto PC.

Exatec*, a wholly owned subsidiary of SABIC Innovative Plastics, and ULVAC, a leader inmass-production vacuum technologies, today announced their collaboration to acceleratecost-effective, high-volume production of weatherable, scratch-resistant, plasma-coated
Lexan* polycarbonate (PC) resin for automobile windows. Under the agreement, ULVAC will
manufacture turnkey mass production systems that leverage its’expertise in high-volume
vacuum equipment and Exatec’s proprietary plasma coating technology.

Photo provision source: Goodrich Corporation
Signing ceremony

13

ULVAC REPORT 2013

* : Trademarks of SABIC Innovative Plastics IP BV.

14▼Technology

ULVAC Group’s Technology

ULVAC Group’s Global Intellectual Properties
Global/Asian Strategy for ULVAC’s Intellectual Properties

Report on the ULVAC Group’s Activities

In fiscal 2012, the Group applied for 317 domestic patents
and 271 overseas patents. Granted patents totaled 572 inJapan and 400 overseas. We have seen a marked trend inrecent years with ULVAC’s patent applications overseas being
increasingly granted.
Meanwhile, various issues over intellectual property rights
have been globalized and many incidents associated withintellectual property rights have gotten much media attention
in several Asian countries. The Group is active in applying forintellectual property rights overseas to protect key
technologies that support its global management. Regarding
the percentage of patents overseas by country in the previous
fiscal year, the rights granted in South Korea, China andTaiwan, in which ULVAC’s major customers operate, accounted
for approximately 70% of the total. This figure represents a
positive effect of our approach to patent applications andpatent application prosecutions overseas to guarantee the useof ULVAC products by customers while appropriately meetingcustomers’ technical needs.
In the days ahead, the competition for development ofleading-edge technologies will accelerate globally mainly in
Asia, giving emphasis to the acquisition of intellectual property
rights as an important means for ensuring management
resources. The ULVAC Group promotes patents regarding its
mainstay products in fiscal 2013 with the objective of efficientpatent applications and high-quality patent overseas.
Furthermore, we will evaluate the relevance of inventions withbusiness plans, as well as the selection of patent applications
overseas based on sales planning and marketing information,
to reinforce our intellectual property rights.

■ Trends in the number of patents in major countries120■	Percentage of patents overseas by country in fiscal
2012 (from July 1, 2012 to June 30, 2013)
■2009

■2010

■2011

■2012

Upon the assumption as QMR, EMR and General Safety and Health Manager
Q1. You assumed the posts in July 2013 as the person responsible for three organizations. Please talkabout the particulars of your assuming these posts and their roles.
The Procurement Center, the Information System Center and the Corporate Environment, Safety &Health Department were established as internal organizations under the Corporate Manufacturing
Division in July 2013. First, they have a common goal of cross-sectional management of the relevant
operating divisions and promotion of standardization and quality improvement for the operations
shared by the design, production control and manufacturing departments. The second role is to start
up a computerized system to arrange and search drawing/technical data by maximally leveraging theintelle c tual p ro p e r ties (IPs) ow n e d by t h e G roup. L a s tly, I co nsid e r t h e f ur t h e r re du c tio n o f
manufacturing and additional costs by proactively promoting the front loading technique on design tobe important to ensure profits, which is advocated in the medium-term management plan. In such astructural outline, I believe that my significant missions are to control the aforementioned three
relevant organizations, promote the visualization of production-related information in an easy-tounderstand manner, and consolidate and support groupwide production systems and conferences.

Other
countries
9%

Germany
4%100● Management Message

Russia2%

Singapore
4%

80

60

South Korea
31%

U.S.A.
13%

40
Taiwan
16%

20

China
21%

0
（Number）

South Korea

China

TaiwanU.S.A.

Singapore

Germany

RussiaHiroyuki Hirano
Executive Officer

Q2. The medium-term management plan addresses“realizing early stable operation by way of front loading to raise customer
satisfaction with forward-looking after-sales services.”This initiative draws attention internally and outside the Company as asignificant step. Talk about the role of the Quality Assurance Division and its future objectives.
In the front loading concept, it is important to strengthen upstream design capability. Especially regarding quality assurance, itis necessary for us to prevent failure-related costs from accruing through a complete risk analysis in the preceding pre-design
process. In collaboration with the Research & Development Planning Department, we increase customer satisfaction withconsistent management of relevant data for our processes from the development stage to delivery and acceptance inspection
by the customer.
Q3. In October 2012, the Group formulated the ULVAC Group Environmental Philosophy and Environment Policy. Please talkabout what is expected in the environmental initiatives under way by the ULVAC Group companies.
ULVAC is one of the enterprises attracting people’s attention to its technologies in the environment and energy domains. The
Group is confident that, with regard to its global environmental management, the development of environment-friendly
products has an important role in solving social issues such as global warming. The Group will be active with concerted efforts
to develop further environment-friendly products.
Q4. ULVAC achieved a zero frequency ratio of occupational accidents in fiscal 2012. The ratio for the overall ULVAC Group has
been also declining. What are your thoughts on initiatives for occupational safety and health, as well as for product safety?
I believe that ULVAC, on a non-consolidated basis, attained a zero frequency ratio of occupational accidents in fiscal 2012 as aresult of the OSHMS being implemented. We will study the implementation of the Global Integration Certification* including theGroup companies. Furthermore, we will establish a system for global responses by promoting front loading from the viewpointof quality, environment and product safety through a consistent management of our systems for quality and environment.
*Global Integration Certification: Third-party certification of the Group companies in compliance with unified standards in terms of quality, environment and safety
in order to promote the globalization and management of the overall supply chain.

15

ULVAC REPORT 201316

▼

Improve the ULVAC Brand

Technical Review/concept check
Development/design process

ActionPolicies

1) We comply with all rules and procedures.
2) We do not deliver any nonconforming
products to the next process.
3) We observe delivery times leading to the next process.
4) We commit to the production budget.

Sales Review
Sales/Order-taking process

Development
plan/risk
analysis

Additionalrisk analysis

Risk analysis

Development
and design
Review

Clarificationof customer
requirements

Risk analysisof change
point

Drawing releaseprocess

Designinput

Designoutputcheck

Analyze risk factors at the development stage and before the start of production,
consider countermeasures and take action to prevent the occurrence of issues.

Mass production machine No. 2, No. 3
Subsequent machines

The essence of the front loading is to realize total
optimization of the heterogeneous elements in the whole life
cycle of manufacturing such as R&D, design, production andmaintenance through the combination of these elements. We
are committed to reviewing our process of realizing total
optimization to this end.

▲

Making Rapid Improvements Based on Quality Information

Claim Management System (ULKES-QMS)

Quality issues

Action item
for themanufacturing
process

occurring at
a customer
factory

Feedback

Quality control system for customer
satisfaction and confidence

Risk analysis and feedback are two fundamental concepts of
ULVAC’s quality management system. Following the flow thatbegins at the development and design stage, we identify risks,
identify countermeasures to them on a“risk analysis sheet,”
and work to prevent quality issues. In the event of an issue
occurring after the production processes and shipping, we
write up a feedback list based on data collected from our

Reduction of additional costs (failure-related costs)

We target a reduction of approximately 10% of additionalcosts (failure -related costs) for fiscal 2013 compared withfiscal 2012 by promoting front loading, which encompasses

17

ULVAC REPORT 2013

Claimand even
deployment

Qualityinspection

Customerclaim report

Feedback

Changerisk
analysis

List and take countermeasures on issues (claims) occurring during mass-production processes andtake action to prevent issues from recurring in the subsequent production of the same machine.

*ECO: Engineering Change Order

Globalization of the ULVAC Brand

Based on a checklist, the products of the ULVAC Group areassessed with respect to their model registrations; clarificationof commercial distribution; compliance with the standards of
ULVAC trademarks; management system for quality,
environment, safety, hazardous substances, etc.; protection of
intellectual property rights; and technology leakage preventive
measures, among others. After this assessment, the products
are then examined and approved. Only the products thatsatisfy all of these criteria are permitted to be manufactured,
produced and sold. Such products are maintained andmanaged using the product, production and sales matrix for
ULVAC Group products. Such a strict system allows us tod i s t r i b u t e“U L V A C Q u a l i t y”a r o u n d t h e w o r l d , t h e r e b y
supporting our globalization.

■ Claim Management System (ULKES-QMS)
Claims from customers[Information input]

Quality issue within a process

Claim Management System (ULKES-QMS) *in five languages[Notification]

Management

Engineers[Information on progress]

Improvement measures
Revision of drawings, etc.

Feedback on
products

Quality Assurance Department Redefined to Operate Independently at Several Global Bases▲

All information on quality issues related to ULVAC and its
production facilities is managed comprehensively by the ClaimManagement System, enabling the information to be shared by
the Group. The system started operation anew from fiscal
2013 as“ULKES-QMS,”a new quality management system. The
system identifies persons in charge within the process at the
Chigasaki Head Office/Plant or our manufacturing assignees
and also notes the date. Any customer complaints after
product delivery are also processed by the system. If thesituation is particularly serious, the information is labeled as a
“Critical Claim”and reported at the monthly business meeting(a regular monthly meeting in which the President and division
managers participate), where responses are discussed anddetermined via a top-down approach.

Assembly
process

Procurement
process▲

To strengthen the front loading, we focus on activities toenhance collaboration between the Sales/ Engineering/Design
and Production Departments in terms of technology and skills,
experience and know-how, wisdom and ideas, and related
information and data, as well as to incorporate the respective
results into the upstream development and design process.

Monitoring

Standardization
process▲

Reinforcement of Risk Management from the Inquiries and Order-Taking Stages

Front loadingStandardization
process

Mass production machine No. 1 ECO* (design change) inspection
Control process Design change
Design change
process

Almost all production facilities of the ULVAC Group have now completed the ISO 9001 certification
procedures for quality management systems. We are producing high-quality products around the world at our
many production factories and joint ventures.
To maintain the“ULVAC quality,”we have established ULVAC brand standards and a certification system,and have a strict check system in place for the start of production and type approval.
We are committed to improving the
Quality of our work to provide
products and services that satisfy
our customers.

ULVAC Group’s Technology■ Quality Assurance System Concept in Relation to Development and Design Flow

Our goal is safe, confidence-inspiring products

Quality
Policy▼Technology

ULVAC REPORT 2013

As for quality inspection and quality system operations, the quality
assurance department has been allowed to operate independently
and independent quality inspection and quality system operations
have taken root at several ULVAC operating bases.
Quality inspections at ULVAC, Inc., ULVAC TOHOKU, Inc.,ULVAC KYUSHU CORPORATION (all of which are in Japan),
ULVAC KOREA, Ltd., ULVAC TAIWAN INC., and ULVAC (China)
Holding Co., Ltd. are conducted pursuant to the globally unified

ULVAC standards by ULVAC-certified quality inspectors inaccordance with the quality control and inspection systems
independently established at the respective operating bases.
These Group companies conduct internal audits independently
with regard to quality-related agreements for the outsourcing ofproduction and have established a collaborative system throughwhich the Company and related companies can address mutualissues.

■ Quality inspection overseas

Claim Management System and feed back that information ateach stage. We also run a stringent quality check on such
issues during the quality inspection prior to shipping. In thismanner, we aim to be timely providers of products that reflect
the most up-to-date technology so that we can promptly
support our customers’ production activities.

ULVAC (China) Holding Co., Ltd.

ULVAC KOREA, Ltd.

risk analysis from the development and design stage,
feedback from claim information and strengthening upstream
design capability.

18

▼

▼

Technology

ULVAC REPORT 2013

ULVAC Group’s Technology

Structural Reforms and a Consistent Procurement Activities
Promotion activities of the 3S, Global Production and Cost Reduction
In fiscal 2013, ULVAC will create renewed co-existence and co-prosperity relationships with suppliers by continual
promotion activities of the 3S, Global Production (Procurement) and Cost Reduction, which accompany structuralreforms executed in the previous fiscal year, and address the improvement of ULVAC’s overall profitability.

1. 3S (acronym of Simple, Same and Standard)

We intend to promote the 3S (acronym of Simple, Same,
Standard) activities for ULVAC products to increase their costcompetitiveness. The procurement department will actively
engage in the production activity of the operating divisions andcommit to preceding cost-reduction activity at the pre-process
stage, as well as post-process activity in the course of
manufacturing (“monozukuri ”).

2. Global production (procurement)

We will increase the overseas procurement ratio and promote
cost reduction of the parts. Especially in the Chinese region,
we will increase purchases from China through collaboration
with the China Procurement Center which transferred the arenaof activity in the previous fiscal year from Suzhou (ULVAC
Suzhou Co., Ltd. [USZ]) to Shanghai (ULVAC China Holding Co.,
Ltd. [UCH]) . Meanwhile, we hold the ULVAC Group
Procurement Departmental General Managers’ Conference toshare information globally and optimize overseas procurement.

■ Our global procurement organization/system[Japan][Area][Major overseas Group companies]

Procurement Center
Overseas operations[Operating divisions]South Korean area
Taiwanese area

ULVAC KOREA, Ltd.
ULVAC TAIWAN, Inc.
ULVAC (China) Holding Co., Ltd.
*China Procurement Center

Semiconductor
Equipment; FPD・PV
Equipment; Advanced
Electronics Equipment;
Industrial Equipment;
Standardized Product;and Materials Divisions[Cooperative working group]
ULVAC TOHOKU, Inc.
ULVAC KYUSHU Corp.

Core Group companies

Chinese area

Southeast Asian area

ULVAC SINGAPORE PTE LTD

North American area

ULVAC Technologies, Inc.

European area

ULVAC GmbHCore Group companies: RELIANCE ELECTRIC, Ltd., ULVAC COATINGCORPORATION, ULVAC-RIKO, Inc., ULVAC KIKO, Inc., ULVAC-PHI, Inc., ULVACCRYOGENICS, Inc., SHOWA SHINKU CO., LTD., ULVAC TECHNO, Ltd., andULVAC EQUIPMENT SALES, Inc.

3. Cost reduction

In addition to the 3S and global production (procurement), we
will review the purchasing method of parts to assure systematicplanned production activity for our suppliers using thedepositary inventory or the bundled ordering method. Also, wewill strive to reduce fixed costs through continuous review ofour business content and radical business improvement by
rejection of useless operations.

ULVAC’s supplier certification system became operationaldomestically in fiscal 2010. The system aims to ensure all
procured products are of the same quality for all deliverablesfrom suppliers worldwide. In fiscal 2012, the failure rate ofdomestic deliverables successfully declined below that of thedesired quality standard of the supplier certification system. Thisfavorable result suggests that the sincere cooperation of ours up pl i er s, w hi ch h a v e a g o o d un d e r s t an din g o f UL V A C ’ sgroupwide quality improvement activities, was obtained.
Meanwhile, at overseas operating bases of the ULVAC Group,similar quality improvement activities have already begun
including the evaluation of suppliers by ULVAC KOREA, Ltd.,UL V A C T AIW AN Inc. and UL V A C ( SUZHOU) Co., L td. The
achievement is beginning to appear.
In fiscal 2013 and beyond, we will additionally enhance thequality for all deliverables from suppliers and promote
simplification of the acceptance inspection procedure. Under
the supplier certification system, the stable supply of theidentical quality of parts supplied by the certified suppliers will
become available, making the acceptance inspection by ULVAC
more efficient than before and improving the throughput to thepost-process significantly.

19

ULVAC REPORT 2013

The ULVAC Group has declared“the ULVAC Group Basic Procurement Policy”regarding the observance oflaws and regulations, the maintenance and promotion of fair and free competition, and the establishment ofsound and friendly relationships with suppliers. In the current term, for the purpose of establishing a more
confident partnership with suppliers and fulfilling our social responsibility as a part of supply chain, we hereby
request that the newly listed nine items below be complied including the response to conflict minerals issue.

1. Laws and Regulations, and Social Norms
2. Fair Transactions and Corporate Ethics
3. Respect of Human Rights and Occupational
Safety and Health
4. Safety and Quality of Products and Services[Conflict minerals]

Conflict minerals refer to certain minerals from the Democratic
Republic of the Congo (DRC) and surrounding countries, of whichmining and trading finance or benefit armed groups directly or
indirectly, or which are the source of human rights violations and/or labor issues. The Dodd-Frank Act, which was established inJuly 2010, requires publicly traded companies in the UnitedStates to perform due diligence with respect to the sourcing ofconflict minerals and to file and disclose annual reports relating

We have adopted a modal shift to change the conventional airtransportation to the combined use of railway and ferrytransportation to reduce logistics costs and CO2 emissions.
Specifically, we switched the means for transporting cargofrom the Chigasaki Head Office/Plant to the Group companies in■ Failure rate by fiscal year (%)
0.6

0.54

0.5

Failure rate

5. Information Security
6. Environmental Preservation
7. Realization of Appropriate Prices and Delivery Times
8. Improvement of Technical Strengths
9. Sound and Stable Corporate Management

For the conflict minerals, which are taken up in“1. Laws and Regulations, and Social Norms,”refer to the following.

Practicing a Modal ShiftULVAC Quality Created with Certified Quality Suppliers
Enhancing the maintenance of high quality
and its system

Response to“Conflict Minerals Issue”

South Korea to Japan Railways‒based railway transportation up
to Moji Port followed by loading onto a ferry from Moji Port toto the use of conflict minerals. Considering that these initiatives
regarding conflict minerals under the Act are a social
responsibility of an enterprise, ULVAC Group intends to address
initiatives toward the non-use of raw minerals which are mined or
exploited with unfair funding and/or illegal methods, as well as
the non-use of parts and components containing such conflictminerals.

Pusan Port, South Korea. This measure allows us to achieve timelines almost equivalent to those via airplanes.
This modal shift has contributed to a considerable reductionof the environmental impact with a CO2 emission-reducing effectof 97% against the use of air transportation. We will continue topromote modal shifts similar to this case.

0.42

0.4
0.25

0.3
0.2

0.12

0.1
0.0

June 2009

June 2010

June 2011

June 2012(Fiscal year)

Japan Railways’ containers arriving at Moji Port

Cargo loaded in the container

20

▼

ULVAC (NINGBO) CO., LTD. (UNB): Chang Jie Chen,
Vice President

ULVAC (NINGBO) is a Japan-China joint

venture established in September 1995. Its

major products include oil rotary pumps;

We enable production of the aforementioned

products at a cost lower than that in Japan

based on our abundant experience in machining and assembly. Our
after-sales services are speedy, and UNB has the potential for further▲❻

est ablishment of s ystems for the bonding,❹surface treatment, cleaning and processingof targets, as well as for quick after-sales services. At present, UK iscapable of producing equipment covering a variety of industrial fields inhigher market shares by aggressively developing forward-looking,s objective and a source of pride for me to contribute to ULVAC by

❸

❼

❶

❷

ULVAC Opto-electronics Thinfilm Technology (Shenzhen)Co., Ltd. (UOT): Zhuang, Vice President

Since its foundation as a joint venture between
UL V A C an d C D OI, U C D h a s a g g r e s s i v el ydeveloped business opportunities in new
industries and tapped international markets
under the management philosophy of“Quality
No. 1, Service No. 1 and Share No. 1 in the
Industry.”Regarding the challenge to enternew industries, for example, we succeeded
in developing full-automatic leak testers of
ULVAC quality to inspect automobile wheels,water heaters and bulbs by fully demonstrating our technical expertisein the airtightness field. Such initiatives have more than offset the
decline in sales from the refrigeration industry, which has been stuck inrecession. Next, regarding the development of international markets,
we fully draw on the global sales service network of the ULVAC Group.
Consequently, we have expanded our sales channels to Southeast
Asia, North America and even to South America by sufficiently taking
advantage of our cost competitiveness via UCD’s own design andmanufacturing capabilities, as well as with the support of the ULVAC
Head Office/Plant and overseas Group companies. As a result, orders
overseas in 2012 accounted for approximately 30% of the overall
orders received by UCD. Net sales in 2012 grew to 10 times higher
than those in 2003.

services mainly for the FPD, electronic parts

products equivalent to those offered in Japanand speedy customer treatment are acclaimed

by customers.

Taking advantage of it s high - qualit y and low - cost produc tion

capability, its extensive business network covering Japan, China andSoutheast Asia, and the excellent language ability of its experienced

staff, UTI intends to develop the plant as the Group’s state-of-the-art

production base to respond to increasing orders and support global
production group-wide.

ULVAC REPORT 2013▲❹of manufactured parts and local af ter-sales

and semiconductor industries. Its high quality ofadvanced engineering and control capabilities, the depth of USZ’USZ al so intends to provide customers with ULVAC’s qualit y

products and excellent after-sales services through the combinationo f v a r i o u s f e a t u r e s o f t h e U LVA C G r o u p c o m p a n i e s i n C h i n a ,including design, manufacturing, production of large equipment andprecision machine processing.

■ Outline of the production plant in Suzhou (China) of
manufacturing equipment for large FPDs and PVs

furnaces. We at USY are pleased to provide

Jiangsu 215026, China

brazing furnaces and vacuum heat treatment

to offer leading-edge vacuum furnaces and excellent auxiliary services.

Address: No. 277 Suhong East Road, Suzhou Industrial Park, Suzhou,
On the premises of ULVAC (SUZHOU) CO., LTD., ULVAC constructeda plant for the production of vacuum manufacturing systems. The
plant started operation in 2011 to meet customer needs in responseto the globalization of the regions in Asia.

VOICEULVAC Orient (Chengdu) Co., Ltd. (UCD): Hong
Jun Wang, Vice President

production system, UTI’s Tainan Plant engages

in manufacturing equipment, the provision

innovative products while maintaining ULVAC’s advantages such as

UOT, which was established in April 2009 asa joint venture between ULVAC and HIVAC,
manufactures in-line sputtering systems for
touch panel production. The popularity oftablet PCs and smartphones has exploded
in re cent years . We at UOT daily ad dress
the delivery of in-line sputtering systems at
low p ri ces by m atc h i n g U LVAC’s cu t t i n g edge technologies with the vigorous
demand in China in this domain. I am deeply
moved by the impor tance of my role in this endeavor as the
responsible person in charge of the engineering and manufacturing
division of UOT.

ULVAC TAIWAN, Inc. (UTI), Tainan Plant:
Qing Feng Chen, General Manager

As a constituent of the ULVAC Group’s global

21

❸

▲

▲

❷

requisites to ensure customer satisfaction. We want to acquire

furnaces, vacuum sintering furnaces, vacuum

are vacuum furnaces including vacuum melting

ULVAC’s control and quality systems. We will continue to make efforts

requests ensures that the company offers high-quality and affordable

the technical guidance provided.

inspection systems. Its specialized productsof many industries not only in China but also worldwide by utilizing

oriented customer relations system to closely address customers’

quality improvement, employment, and sales and profit amounts due tosophisticated processing, assembling andvaluable products that support the foundations

Korean and overseas customers with total solutions. Its communication-

Fur thermore, we pursue co -prosperit y and mutual grow th withULVAC Vacuum Furnace (Shenyang) Co., Ltd. (USY):
Shi Hua Wang, President

bet ween UL V AC and china CNV AC. It has

which vacuum technology is required, and UK thus provides both South

cooperative companies through the increased ef fects of improved

addition to foreign competitors. In such harsh business conditions,providing customers with competitive products and services through▲e n g in e e r s ; t h e d o m e s t i c p ro d u c t i o n a n d
procurement of core component s; and thecontinuous improvement and retrofitting processes for existing ULVAC

Chinese domestic manufacturers has become increasingly fierce inhigh quality, low cost and complete after-sales services are vital

USY was established in 2005 as a joint venturewith measures such as nur turing technicalequipment.

significant progress,

competition withbusiness development in light of its vast customer base. It is UNB’❻

Since then, UK has solidified its infrastructure

improve the productivity and the yield rate at our customers throughcurrently shows market penetration and low production costs in China, as well as

first company in South Korea to domestically

Materials, we make our utmost efforts for higher customer satisfactionand elec tronic

our extended after-sales service bases nationwide.

produce sputtering systems for LCDs in 2001.

by firmly promoting ULVAC’s proposal activity, of which a goal is tosemiconductors,

devices, all of which

separators; and oil purifiers.

UK, which was established in 1995, became theProgram (CIP) activities ex tending from the core Institute for Super

markets forventilation systems; oil mist traps; oil/water

ULVAC KOREA, Ltd. (UK): Sun Gil Kim, Senior Director

equipment. In addition, in compliance with the Continuous Improvement

In the equipment

displays, flat panels

piston pumps; vacuum gauges; vacuum &ULVAC Group’s Technology

ULVAC (SUZHOU) CO., LTD. (USZ): Zhi Cheng Gu,
Vice Presidentroots-type dry vacuum pumps; dry pumps;

the improvement of independent development capabilities.

❶

❼

▲

True globalization requires that the Group has solid interactive business strategies that incorporate not only
the viewpoints of our ULVAC Head Office/Plant in Japan but also the strengths, opinions and market needs ofthe Group companies, especially those of overseas affiliated companies with business bases abroad. TheULVAC Group consists of a number of Group companies that boast excellent technologies and those withpowerful sales bases and/or production systems locally in the countries or regions in which they operate. By
establishing collaboration system to assemble our collective strengths, we endeavor to meet the expectationsof ULVAC product users who conduct global operations and contribute to enriching the lives of the people
who work at our Group companies.

❺▲

ULVAC Group’s Global Business Development
Deeply Entrenched in Local Region▼

Technology

ULVAC REPORT 2013

Cornerstone of ULVAC’s Globalization:
Global Production Planning Department
Members of the Global Production Planning Department
The Global Production Planning Department, was newly established in fiscal 2013.
Its primary role is to maximize the ULVAC Group’s business activities by effectively
l eve ra g i n g t h e g l o b a l i z i n g m a r ke t s a n d m a n u fa c t u ri n g a n d /o r s a l e s b a s e sworldwide. The section plans development strategies to enter the markets ofemerging nations where future development is highly expec ted and reviews
existing rule and/or systems so that the Group can demonstrate its collective
strengths for global manufacturing and product development including domestic
production as a Japanese manufacturer. Moreover, in active collaboration withother business divisions, we lead the process of developing strategies and policies
for future products at the relevant business divisions.

22

▼

▼

Environment

ULVAC REPORT 2013

Environmental Measures of ULVAC Group

Environment-Friendly Products
ULVAC-PHI, Inc.

PHI X-tool Automated XPS Microprobe with less energy consumption

We would like to introduce the ULVAC Group’s global environment contribution measures such as environment-friendly products
and various measures taken by the Group companies.

Global Environmental Management of the ULVAC GroupThe ULVAC Group, under its environmental policy“Develop products that contribute to energy saving, resource saving
and environmental conservation,”is emphasizing the development and production of products that maximize theirenvironmental contribution when used by customers. We also thoroughly manage energy consumption and waste
emissions in our business operations to minimize the environmental impact of our business activities.
In fiscal 2012, with a goal to achieve zero environmental accidents, the ULVAC Group conducted thoroughenvironmental management on a daily basis and shared information closely among the Group companies. As a result, noserious environmental accidents that could affect communities occurred.
The ULVAC Group will continuously promote environmental protection through its products and reduce theenvironmental impact.

Environmental Management of the ULVAC GroupThe ULVAC Group, which operates in a number of regions
including Asia, Europe, the United States and Central andSouth America, has a global production system and it isnecessary to share information among the Group
companies and implement directions from top management
speedily and accurately. To that end, we hold regularmeeting s of the Global Environmental Management
Committee, attended by the major Group companies, toreport and deliberate on various environmental issues.
Meanwhile, to prevent serious environmental accidents
from occurring, environmental inspections are conducted
regularly by the environmental management personnel ofeach Group company t o monit or the environment alactivities conducted at each company. The ULVAC Group
continues to promote environmental management both insoftware and hardware.

■ Environmental Management Structure of the ULVAC Group
President of
ULVAC, Inc.
Environmental Management
Representative of ULVAC, Inc.

ULVAC Group
Environmental MeetingGroup companies

Environmental Departmentof each Group company

Global Environmental
Management Committee

Environmental Meeting ofeach Group company

Energy Management
Committee
Environmental Information
Committee

23

ULVAC REPORT 2013

● ULVAC Group Environmental Philosophy

Corporate Environment,
Safety & Health Department,
Environmental Management Section

ULVAC Group takes on one of major issues for everyone around theworld, which is to conserve and protect the global environment. We
will consider environmental conservation in all aspects of ourbusiness activities and will contribute to develop a better place tolive and an enriched society.

to conduct a series of analyses using the touch panel easily evenby beginners. Also, utilizing the most advanced electronics
technology, this environmentfriendly product can help
control energy consumption
and allows efficient operations
including baking, which isindispensable for ultra vacuum
technology. Furthermore,compared with conventional
equipment, both its regular
operations and baking can takeless than 1.6 kW (@200V),
ac h i e v i n g a s t on i s h i n g l y l ow
energy consumption, thereby
helping customers control
electricity use by switching froma 50A to a 20A circuit breaker.
PHI X-tool

Tanbo (rice field) Project
On May 25, a beautiful sunny day, this year’s Tanbo Project began with people in high spirits. With thenumber of participants increasing each year, this Tanbo Project is in its fourth year. Unprecedented turnoutof more than 100 persons participated in the second event of the project, which was nature observation.
This project was featured in the local community magazine TOWN NEWS, helping disseminate information
on Tanbo Project activities outside of ULVAC.

Voice

I’ve been participating in Tanbo
Project for years. The rice fieldarea is increasing each year
and so is the number ofparticipants, including children,
students, NPOs and volunteers.
This year, I felt something
special about this place and asynergy that can be found only
on this project.
We can conduct this project
thanks to the landowner’s
dedicated efforts. I would liketo do what I can do to support
this project.

Picture diary by Rei Hasegawa,a boy who participated in the
Tanbo project

Photo
Diary

Jiro Kikuchi
Corporate Manufacturing
Division● ULVAC Group Environmental Policy

Develop products with a goal to save energy, reduce the use ofnatural resources and contribute to the conservation of ourenvironment.
１. ULVAC Group products/Final products
２. ULVAC Group manufacturing process● For more details on the ULVAC Group’s environmental

initiatives, visit the URL:

http://www.ulvac.co.jp/csr/▼

Environment* Tanbo Project in its fourth year near Namegaya, Chigasaki, Kanagawa, JapanThe X-ray Photoelectron Spectroscopy (XPS) or Electron
Spectroscopy for Chemical Analysis (ESCA) method is ameasurement of photoelectron spectra emitted from the 10-nm
surface of the solid matter by irradiating an X-ray on its surface
to obtain information on its chemical composition and bonding.
The earnings per share, the most popular methodology forsurface analysis, is widely used for the chemical surface analysis
of especially highly functional materials and devices including
surface treatments (adhesion, smoothing, de-molding,transcription) and surface abnormalities (pollution, discoloration,
corrosion, unevenness, extraneous matter), catalysts (waste gas,fuel batteries) and thin film (disc media, solar battery).
The PHI X-tool, which is included in the Company’s XPS
equipment lineup incorporating the Company’s proprietary X-ray
scanning technology, can automatically select the area forspectroscopy in a range from less than 20 µm to a few mm andconduct flexible measurements under conditions fitted for the
sample. Compared with conventional equipment, this productfocuses on certain limited functions and is designed to be able

24

▼

The ULVAC Group has been developing business operations at its Group companies worldwide, of
which each company is conducting aggressive activities to save energy and resources for their efficientuse. With efficient energy use strongly in demand, the ULVAC Group strives not to waste energy.

ULVAC TOHOKU, Inc.

Awarded as a good plant for greening efforts

Transition of the ULVAC Group in fiscal 2012

ULVAC TOHOKU, Inc. received the Japan Greenery Researchand Development Center Chairman’s Award on November 11,

Center is a corporation related to the Ministry of Economy,
Trade and Industry, this award is from an authoritative
organization.
ULVAC TOHOKU, Inc. has its head office and plant in
Hachinohe, Aomori. Of the entire 12ha plant site, more than 4
ha is greenery, which mainly consists of a natural forest of
80-year-old Japanese red pine, flowerbeds at each plant, cherry
tree lined avenues on the company premises and approximately
CO2 emissions ■ULVAC, Inc. (non-consolidated) ■Domestic companies of the Group- CO 2） Inc.■Overseas
companiesof theGroup
Greenery at ULVAC（tTOHOKU,(scenic landscapeat theSouthGate)
90,000regularly to keep the landscape of the plant site attractive.
Although the maintenance of such a large greenery area takes a

60,000lot of work, the dynamic geographic features and seasonallydifferent scenic landscapes are spectacular and leave viewers
with a good impression. With this benefit as encouragement andgiven the recognition for its greening efforts, ULVAC TOHOKU,
Inc. continues efforts to make further improvements.

ULVAC TAIWAN INC.

11,83032,56230,00028,0370June 2011

20,67329,974Kibo-no Mori forestation activity was conducted at the Tainan
Science Park on March 27, 2012. On that day, approximately
500 participants planted nursery stock. Yun-Hsiang Wei, ViceP r e s i d e n t o f U L V A C T A I W A N IN C . a n d e m p l o y e e s o f t h ecompany’s Tainan plant participated in the activity. Researchmaterial issued by the Forestry Bureau, Board of Agriculture,
Forestry Administration Division in Taiwan noted that by
p l a n t i n g o n e t r e e o n e a r t h , a r e d u c t i o n o f 12 k g C O 2 i sachievable in a year. Our goal is to plant approximately 4,000

pine trees at Kibo-no Mori at the Tainan Science Park, thereby
reducing CO2 by 4.8 tons annually. ULVAC TAIWAN INC. willcontinue to participate in this activity, thereby contributing to
the reduction of greenhouse gas emissions and fulfilling its

25,64535,673

20,311

21,656
June 2013

32,562June 2011

20,311

21,656

June 2012

June 2013■ Transition of water use volume

120000lighting by 66%. (ULVAC CLEAN PRECISION TECHNOLOGIES CORP.)

1,200

230

by thinning operations.
【Use of heavy oil: 32% reduction】(ULVAC TOHOKU, Inc.)• Renewed light bulbs to highly efficient LED light bulbs, thereby reducing energy for

80000

800

However, CO2 emissions increased in fiscal 2012. It is believed
40000
that this increase was due to a rise in the TEPCO CO2 emission
coefficients that ULVAC uses as a standard for calculation.
0 n the other hand, total waste volume decreased
O
2011
2009
2010
approximately 45% compared with the previous fiscal year. In
the previous fiscal year, we disposed of many assets as part ofour structural reforms at the year-end, thereby increasing waste
volume. Because no extraordinary events occurred during fiscal
2012, total waste volume decreased and the recycling rateincreased, showing improvement in both aspects. Currently, theU LVA C G ro u p i s c o n d u c t i n g a c t i v i t i e s t o a d d re s s w a s t eemissions, aiming to promote recycling and turn waste into
re s ource s w i t h s o m e v alu e. We in t e n d to co n t inu e t h e s eactivities in fiscal 2013.

0

●LNG

●City gasStrong acid, strong alkali
1,414

Glass, pottery waste
85

Waste plastic 511

Wood chips
625
Waste acid, waste alkali
695

Volume ofrecycled waste
converted
to resources
1,769
Volume of waste
4,688
Unit: tons (t)CO use volume
Fuel●Heavy oil

612 kL●Diesel oil

CO2

99 kL

1,350 thousand m3

Packaging materials

2,103 tCO2 emissions

82,974 t-CO2 Emitted by use of electricity, gas and fuel

33 kL

Water use volume1,625 thousand

Other
527

● Breakdown of the total waste emissions from the ULVAC Group

CO2

CO2m3

Food garbage 140

OUTPUT●Kerosene

687 t● Breakdown of the volume of waste

Waste oil, flammable waste oil
304

Scrap metal
1,472

2

180 t

145

June 2013

June 2012

Sludge 387

INPUT

2

815

176

246

June 2011

Cardboard boxes
132

Material Balance (ULVAC Group)CO
Gas usage915● Breakdown of the volume of recycled
waste converted to resources
Wastepaper 76
Waste plastic 86
Waste oil 3

The ULVAC Group strives to reduce the environmental impact
of its business activities and continue to promote environmental
management activities with concerted ef forts at all Group
companies.

●LPG

1,049

391

■ Transition of the volume of waste• C o m p re s s e d t h e t o t al v o l u m e o f w a s t e e mi s si o n s b y re v i e w in g t h e w a s t e
segregation method and increasing useful and sellable recycled product items.
(ULVAC, Inc.)• Reviewed the standards for waste storage at all areas such as clerical of fices,
work sites and plant ex teriors. Continued to provide related education to all
employees and conducted environmental patrol to monitor the status of waste
management. (ULVAC KOREA, Ltd.)・Collected and recycled materials that were used for bonding. (ULVAC MALAYSIA
SDN.BHD.)

156,750 thousand kWh

332

400

Introduction of waste reduction activities by each Group company

2

800

400

28,0370

1200

35,67329,97430,000

電力使
（千kW
1600

25,645

20,673Use volume ■ULVAC, Inc. (non-consolidated) ■Domestic companies of the Group(Thousand m3) ■Overseas companies of the Group1,600

CO useElectricity

ULVAC REPORT 2013

11,830

電力使用量 ■アルバック単体 ■日本国内生産拠点 ■海外生産拠点
Introduction of energy-saving activities by each Group company（千kWh）• Insul ation m ea sures f or ho t w ate r pip es and t horou g h mana ge m e nt o f s e t
160000temperatures,
as well as review of air-conditioning
and heat source
management
00,00000,00000,0000

corporate social responsibility.

25

60,000• Reduced energy consumption by managing utility operations. (each company of
the ULVAC Group)

June 2012

Forestation activities at the Southern Taiwan Science Park (STSP)
to establish Kibo-no Mori (forest of hope)
Sponsored by the Southern Taiwan Science Park Administration,

CO2 emissions ■ULVAC, Inc. (non-consolidated) ■Domestic companies of the Group（t - CO 2）■Overseas companies of the Group
90,000Group aggressively promoted 3S+1D (Simple, Same, Standard+ Dif ference) and reviewed it s use of energ y, utilities andchemical substances, etc., in production and development
aiming for increased efficiency. With regard to electricity use,
despite the addition from three Group companies of datacollection (electricity use of the three companies was about
2% of the Group’s total), we reduced total electricity use of
the ULVAC Group by 2%. This significant result was largely
attributable to the accumulation of each company’s energys aving ac tivities . In ad ditio n , fo r oth e r kin ds of e n e rg y, a
reduc tion of more than 10% was achieved , reflec ting theeffect of the Group’s thorough energy management.

Given that the Japan Greenery Research and Development

and the area along the borders is mowed and weeds are cut■ Transition of CO2 emissions

I n fiscal 2012, in promoting its structural reforms, the ULVAC

2012, in recognition of being a good plant for its greening efforts.

At this company, annual maintenance is done for such greenery

Environmental Measures of ULVAC Group

Environmental Performance of the ULVAC Group

TOPICS

100m long flowerbeds aligned on both sides of the south gate.

▼

Environment

ULVAC REPORT 2013

CO2

●Total volume of waste emissions

6,457 t●Volume of recycled waste converted to resources

1,769 tRecycling ratio 96.3%
CO2 emissions from transportation 1,488 t*The source of the above data is the 41 major companies of the ULVAC Group(four companies are added from the previous fiscal year).* The volume of
packaging materials is based on the data from 25 companies of the ULVAC
G r o u p ( t w o c o m p a n i e s a r e a d d e d f r o m t h e p r e v i o u s f i s c a l y e a r ) . * C O2
emissions from transportation are based on the data from 3 companies of the
ULVAC Group.

26

▼

▼

Organization

ULVAC REPORT 2013

ULVAC Group Organization

Education for Engineers～Accumulation and Sharing of Technologies
and Passing Them on to Our Successors～

We have been providing education for engineering-related
employees since January 2013. Such education is provided for the
purpose of“acquiring basic technologies (ubiquitous principles,knowledge acquired based on trial and error, core technologies
and common sense) with an aim to reinforce technologicalcapabilities”and“accumulating and sharing technologies andfinding and nurturing successors to pass on our technologies.”
Lectures are given by our employees with ample knowledge ofthe technologies featured by such lecture sessions. We document
the expertise and technologies that have been accumulated at
ULVAC and use such materials to educate our employees, thereby
ensuring the accumulation of our valuable technologies is passed
on to successors in the Company.
The engineering education handles technologies in immediateneed or of high priority that are selected from among past issues
and those reported at meetings for reporting technological issues
in immediate need that are held twice a year.
Education for engineers is, in principle, provided once a monthand each lecture session is for one hour. Seven sessions were
held from January to July 2013. One session had 250 attendees
including those from Group companies.

～Self-Care～To reorganize into a value-creation-type business model, the Company must evolve through self-transformation.
We promote a system in which human resources who support new and improved ULVAC can make the best use of their capabilities.

Invigorate the Individuals and Organization of ULVAC via
Personnel System that Rewards Efforts and Outcomes.
As part of its business structural reforms, ULVAC made significant change in its personnel system, reviewing the
remuneration and evaluation systems so that employees can share a profit-seeking mind-set and be on the same vector.

ULVAC Reformed Its Personnel System
Although the Company had adopted a seniority-based personnel
system for a long time, at the recent business structural reforms
we shifted direction to a personnel system where employees whomake great efforts are rewarded properly. Specifically, a drastic
review was made of the remuneration system such as salaries
and bonuses, as well as the evaluation system that supports the
remuneration system.
Compared with the conventional remuneration system, the new,fairer system reflects each employee’s roles, business performance,
process and outcomes regardless of seniority. At the same time,each employee is expected to fulfill his/her responsibility with
passion and aspiration to improve himself/herself, and thus, we
strive to invigorate individual employees and the organization bychanging the mind-set.
In our new evaluation system, instead of emphasizing only
business resul t s, an at titude t o“tackl e chall enging issues
courageously and unflinchingly”and“work as a team”are highly
encouraged. We will continue to value and nurture a corporate
culture in which employees can freely generate ideas and are
not afraid of failure, because such a culture is important for adevelopment-oriented company like ULVAC.
Along with the personnel system reforms, we are striving toincrease training opportunities. In fiscal 2012, we revised our Basic

Policy for Human Resource Development, thereby clarifying the ideal
human resources needed for today’s ULVAC. We are improving the
educational structure to provide training covering all tiers from new
employees to executives, through which the issues and problems
facing ULVAC are clarified and each employee can understand andimplement his/her role as requested by the Company.
W e h a v e a l s o r e c o g ni z e d t h e d e v e l o p m e n t o f n e x t generation human resources and a personnel rotation system
as essential issues for invigorating
the or g anization. Whil e paying
attention to the balance between
specialists and generalists, we areproactively promoting interaction
among employees and the flexible
management of the organization.

Tomoyasu Suzuki
General Manager
Personnel Department

Basic Policy for Human Resource Development (Revised in fiscal 2012)

1. Human resources who respect other individuals, trust each other and fulfill their responsibilities
2. Human resources who can see the true nature of each issue and create revolutionary technologies and projects with passion and tenacity
3. Human resources who are full of aspirations to improve themselves and take voluntary actions to achieve goals
4. Human resources who have a global perspective and aim to take leadership in exploring the world

27

ULVAC REPORT 2013

Technology Advisor Mr. Nakamura, giving a lecture to engineers

Mental Health Education

Organization～Invigorate the Individuals and Organizationof ULVAC by Changing the Mind-Set～

Al though such educa tion f or engineer s is basic f or our
engineering-related employees, in collaboration with our Quality
Assurance Section of the Technology Planning Office, we intend
to expand this educational session so that employees acrossthe ULVAC Group can accumulate and share technologies. By
establishing such an educational structure, we will find and nurture
our next-generation successors.

Although our mental health education used to be separately
c o n du c t e d f o r e a c h t i e r a t e a c h m il e s t o n e s u c h a s w h e n
employees joined the Company or were promoted, we havestarted self-care educational sessions that all employees cantake whenever they want. Currently, our self-care education
offers themes such as active-listening, cognition and assertion. In
self-care education, emphasizing participants’ improvement andlearning, workshops are conducted in a small group consistingof up to 30 people. We are receiving positive feedback fromparticipants such as“I will be able to utilize this learning forworksite meetings”and“I will be able to use this both for workand for my private life.”

Mental health education

Overseas Internship
ULVAC has been accepting foreign students as interns every year.
From among such students, Alex and Stefan from Germany were interviewed.
1. What was your first task at ULVAC?

3. What do you think of ULVAC as a company?

Alex：One of my first tasks was to build a program in LabVIEW. At first I had tolearn the basics of LabVIEW. The purpose of the program is to move a stepper
motor up and down. The program should include user friendly features suchas a limit to overdrive. The device itself includes a sensor and a motor. It wasassembled and tested by me. Now it’s helping a fine positioning device tofocus a camera.

Alex：About the atmosphere in the company I can only say positive things.
It seems like everyone is caring for each other and some of the coworkers
are bringing sweets from places they have visited. Even the working culture ispositive and people tend to stay longer if they have work left to be finished.
One point which might be improved seems to me the productivity while
meetings. I remember the quarterly meeting of our division where people were
holding presentations throughout the whole day and I felt very tired after thisday. Maybe I wasn’t the only one. This could be improved if the people attend
a soft-skill workshop in how to do well-thought-out presentations and betterway of performing a power point presentation.

S t e f a n：F i r s t I h a d t o l e a r n h o w t o h a n d l e t h e m a c h i n e s f o r s p u t t e r i n g ,measuring thickness of thinfilms and measuring the transparency and resistivityof thinfilms. Now that I’m able to handle the machines I produce thinfilms of
ZnO in different environments and measure its properties afterwards.
It’s an interesting and challenging task, especially to get an understanding of
the results of the measurements.

2. How do you want to make use of what you have learned in acompany in the future?

Stefan：I appreciate the harmonic and productive atmosphere that every
employee is creating here. The skill and know-how of the employees will
enable the company to also go through crises of the markets and come out
in a stronger position than before. My impression of the facility is that it’s allvery modern and progressive, it is a beautiful place to work at.

Alex：In general it’s the ability to solve problems self-reliant and if I go on
with learning LabVIEW it will be very useful for me because LabVIEW is a
powerful program used in many companies. Apart from this I am now used tointercultural environments and may think outside of the box when problems
might occur.
Stefan：In my master thesis I already gained some skills in the characterizationand measurement of CIGS – thinfilms. The skills I acquire here will expand myknowledge about measurement techniques and I also get an inside into theindustrial production in a leading company. I also learn the language (it’snot easy, but I try to practice every day so after the internship I hopefully canspeak, read and write a little bit of Japanese) and culture that is so interesting
and I can learn so much personally from.

Right: Alexander Drop (worked at Research & Development Department)

Left: Stefan Hass (worked at the Institute for Super Materials)

28

▼

Responding to the Results of the Employee CSR Awareness Survey
50
49

48
50
47
49

awareness of CSR during the period June 13‒28, 2013.

We conducted this Web-based questionnaire as we did in
the previous year. The questionnaire was answered by 1,372

Index and Average, was calculated from the survey results

44.9

40

Production
controlManagement40

43

Up to age 19

1,500

43

‒ 29
Up25
to age19

43.7

35 ‒‒ 29
39
25

0

500

30
34
20 ‒‒ 2445 ‒‒ 3949
35

50 ‒‒ 44
54
40

1,500
1,000

1,200

1,289

40

1,148

(Persons)

60 ‒‒ 5464
50
55 ‒1,898
59

500■0 Changes in the number and percentage of disabled employees

40
35

2.08
1.88

1.89

1.82

35

0
(Persons) June 2009

601

1,753

1.89

37

40

June 2010

142

2.08

27

June 2011

37

40

27

21

2.0

37

40

China

Taiwan

27

1.0

21

0.5
Singapore/Malaysia

June 2010

June 2011

June 2012

Female 6.6%
76

June 2013

ULVAC REPORT 2013

June 2011

June 2012

June 2013

0.0

Advise140 142 139
North America

0.0■ Gender ratio in management positions [June 2013](ULVAC, non-consolidated)

Female 2.3%
8Department general managers
Consult

EducateImprove theworkplace

Care at work

Total inmanagement
positions:
347
Male 97.7%
339

Consult

Consult/
See doctors

Workers

0.5

0.0

Consult

Mental health checkups*EAP: Employee Assistance Program. EAPs collectively refer to mental healthcare services provided externally.

To detect and treat mental illness as early as possible, we started to provide mental healthcheckups at the same time the physical health checkups are given. Any employees who
are determined to require treatment as a result of the checkup are interviewed after the
checkup by the occupational physician and occupational health nurses, who provide
advice and counseling.
We of fer an internal desk at the Health Promotion Of fice for employees who seek
consultation regarding issues of mental and physical health. Various requests for
consultation from employees are responded to by the occupational physician andoccupational health nurses at the Office, who offer advice on how to spend time athome and the workplace and refer those needing medical treatment or examinations toa medical institution.
Employees who are on a long leave to treat mental illness are regularly
i nte r v i ewe d by t h e o ccu p at i o nal p hysi cia n a n d o ccu p at i o nal h ealt h n u rs es tosupport their recovery and a smooth return to work. In addition to providing theseinterviews, we promote efforts to use external facilities that support a return to work
and improve the workplace environment for such return. A s a result, our ratio of
those returning to work after a long leave is higher than 90%.
With increasing awareness of the internal desk for health consultation, we areseeing fewer cases of mental illness becoming worse along with the effect of mental
health education for supervisory employees. This leads to a decrease in the numberof employees who end up on leave for treatment at home by approximately 75%
compared with fiscal 2010.

■ Number of new leaves of absence for one
month or more due to mental illness(Number of leaves of absence)
20

15

10

5

0

2010

2011

Promoting Physical Health

In March 2013, we established the Health Management Regulations, according to which
we systematically follow up based on the results of health checkups. Specifically, we
provide medical guidance for employees who need detailed examinations and/or
medical treatment and healthcare guidance to prevent future lifestyle-related diseases
as well as maintain and promote physical health.

30

Optional checkups

To help increase the health consciousness of employees, we provide opportunities
for internal checkups for items other than the statutory checkup items. For example,
we conducted sleep apnea syndrome (SAS) screening tests in fiscal 2011 and viral
hepatitis screening tests in fiscal 2012, which were taken by 78 and 283 employees,
respectively. These provided an opportunity to promote awareness of diseases thatare not easily recognized in the course of our daily lives.

2012

(FY)

■ Number of follow-ups, including follow-up interviews(Number of follow-ups)
40

Establishment of the Health Management Regulations

Total numberof employees:
1,148

Mental clinics
External EAP*
providers

Collaborate

Healthguidance

Consult

Internal desk for health consultation

2.0

138 168 130
35

Male 93.4%
1,072
June 2010

June 2013■June 2011
■June 2012
■June 2013

0.5

5
0
(Persons) June 2009

June 2012

ULVAC Health Promotion Office (occupational physicians and occupational health nurses)

Cooperate

2.0

1.0

21

1.5

603 601 592

Provide educational
opportunities

1.5

54.7

1.83

1.82

(ULVAC, non-consolidated)

1.0

35

2.08

52.5 54.7

1.5

20

29

52.5

52.0
1.83

50.0
1.82

52.0

15

Conduct health checkups at the workplace
and provide feedback on the results

Mental Health Promoters(Health Officers and occupational health nurses)

142

Support49.9■ Gender ratio in employees [June 2013]

25

10

1,848

1.88

0
(Persons) June 2009

1.83

30

15

168

5

(ULVAC, non-consolidated)■ Number of disabled employees ● Employment ratio

55

50.0

1.89

Prepare the Mental Health
Action Plan

Collaborate

Collaborate

48.3

20

■ Number of 1,898
disabled employees ● Employment ratio

South Korea
10
142

52
601

Personnel
Department

5

15

168

665

49.9

1,289

20

601Group
ULVAC
companies in Japan

55

25

2,155

25
663 665 662

ULVAC,
non-consolidated

52

46.3 47.730

665

Promotion Managers(division managers)

Use
Labor Safety Section,
Corporate Environment,
Safety & Health Department

Appoint

45.7

30

60 ‒ 64

35

1,289
600
0

47.7490

1,898

Manufacturing

48.3

168

2,1551,912

46

1.88

35

55 ‒‒ 49
59
45

665

2,218 2,155

MechanicaldesignULVAC

Mental Health■ Number of disabled employees ● Employment ratio

40

3,000

1,800

49

46.3

500

2,000

1,289
46

45.7

40 ‒‒ 34
44
30

1,000

2,574

Manufacturing

43.7
1,000

20 ‒ 2440

Personnel Data of the ULVAC Group 10

2,400

Mechanicaldesign

1,898

2,000

2,000

2,500

Technology

2,500
Production
Management Technology
2,155
control

Sales■ Fig. 2 UPIX by age

previous fiscal year, had a significantly lower UPIX value of 44.1
this year, for which we think the reason is the drastic
organizational change (Fig 1).
Next, UPIX by age showed a tendency that the older theemployee, the higher the evaluation, which was the same as
the previous year (Fig 2). We need to promote CSR activities
and create a better workplace by listening to younger
employees and middle-tier employees, who will support
ULVAC’s future.
We intend to continue this survey, listen to many employees’
opinions and promote ULVAC CSR activities by creating ar e w a r d i n g w o r k p l a c e w h e r e e m p l o y e e s c a n w o r k2,500
withenthusiasm.

internal regulations, we have enhanced the organization of
our support activities for mental healthcare and are promoting
educational efforts, mental health checkups and the awarenessof our internal desk for health consultation.

■ Organization of mental healthcare support systems according to the“Detailed Regulations for Ensuring Mental Health”

Sales

41

technology, environment and organization.
Concerning the UPIX by occupational type of businessdivision, Management showed good results with values above
50. However, Sales, which showed a good result of 50.4 in the

To promote its measures for ensuring mental health, ULVAC
formulated the“Detailed Regulations for Ensuring M ental
H e al t h”in D e ce m b e r 2012 in l in e w i t h t h e p o l i ci e s o f t h e
Ministry of Health, Labour and Welfare. According to these

44.9

44.1

40
42

higher the UPIX, the higher the evaluation in CSR awareness,

Promoting mental health

48.6
47.3

44.1

42
44
41
43

using ULVAC’s own formula. The UPIX’s average value is 50,
which was the average in the fiscal 2011 survey result. The

47.3

48.0

44
46
43
45

answers from 525 employees and UPIX, the ULVAC Precious

48.6

50.3

48.0

46
48
45
47

employees (a participation ratio of 38.3%), of which we tallied■ Number of employees of the ULVAC GroupThe ULVAC Group places a high priority on the mental and physical health of its employees and engages in the management
thereof so that they can work energetically. At ULVAC, one full-time occupational physician and two full-time occupational
health nurses work in the Health Promotion Office at the ULVAC Head Office/Plant in Chigasaki to ensure good health for
ULVAC’s employees.

50.3■ Fig. 1 Business Division UPIX by occupational typeascertain ULVAC employees’ level of recognition and

1,500

ULVAC’s Vacuum Technologies Are Supported by Consistent Efforts to Ensure Good Health

35
33
28

25

25

25
22

20

16

15
11

10

0

19

18

15

5

38

35

35

4 4

2 2

1010

9
3

16

15

11

11

10
4 4 4
1

7

5
1

3

9

4

2010-072010-08
2010-092010-10
2010-112010-122011-01
2011-02
2011-03
2011-04
2011-05
2011-06
2011-072011-08
2011-09
2011-10
2011-11
2011-12
2012-01
2012-022012-032012-04
2012-05
2012-06
2012-072012-08
2012-09
2012-10
2012-11
2012-122013-012013-022013-032013-04
2013-05
2013-06

We conducted the Employee CSR Awareness Survey to

ULVAC Group Organization▼

Organization

ULVAC REPORT 2013

(Month)30

80Organization
100▼

ULVAC REPORT 2013

60
80
40
60
20
40

Among the ULVAC Group,“Safety First”is an ideal built into its Basic Philosophy of business operations, and assuch we endeavor to secure safety and health both in our workplace environment and in products and services
for our customers. By operating our Occupational Safety and Health Management System (OSHMS), which
focuses on risk assessment, we aim to create an ideal environment.

In fiscal 2012, we attained a zero frequency ratio of
occupational accidents for ULVAC, Inc. This was largely due to
steady companywide efforts to promote risk assessment. The
number of occupational accidents for the entire ULVAC Group
has also been decreasing year by year, and the frequency ratio
thereof in fiscal 2012 decreased to 10% from two years earlier.

1. Operating the OSHMS system To ensure the safety and health of our customers and employees

4. Product safety

regularly held, ensuring involvementin safety and health management
efforts throughout the Group fromtop management to onsite workers.
In fiscal 2013, we are making
consistent efforts to enhance the risk
assessment concerning production
activities to achieve the better safetyof the workplace environment.

Due to the various measures taken to date, the productaccident rate has been gradually decreasing, although the rate
in fiscal 2012 remained almost unchanged from the year
before. In fiscal 2013, we will seek to enhance the safety of
ULVAC products by putting greater efforts into education on
product risk assessment and to eliminate product accidents on
a global level for all employees engaged in manufacturing to
the handling of products.

Natsuki Takahashi,

General Safety and Health Manager (OSHMS Committee Chair)CEOs of the Group companies

Corporate Environment,
Safety & Health Department

President’s instructions, system reviews
Safety Management Committee (company-wide OSHMS)
Committee chair : General Safety and Health Manager
Committee members : Division Managers

Opinions of employees reflected

Organization under the Industrial Safety and Health Act
Safety and Health Committee

Safety and Health Committee members: Union Representatives,
Company Representatives, Occupational Physicians

Safety Management Committee
Safety Officers

Health Management Committee
Health Officers

Floor Safety and Health Managers

Chemical Substance Management Committee

Safety Management Promotion Conference (division OSHMS)
Members: Safety Management Promotion Managers(department general managers), Division Managers,
Safety Officers

Product Safety Committee

OSHMS organization

Chemical Substance Managers

Safety Management Promotion Managers

Specialty Gas Safety Committee

Safety Promotion Committee members

Specialty Gas Safety Committee members*The Occupational Safety and Health Management System (OSHMS) refers to all activities designed to enhance the safety and health levels of ULVAC according to thedirection of the Ministry of Health, Labour and Welfare, such as publicizing safety and health policies, conducting risk assessments and safety measures, setting safety
and health goals, developing and implementing safety and health plans, and conducting system audits and management reviews.
ULVAC Opto-electronics Thinfilm Technology (Shenzhen) Co., Ltd.

ULVAC AUTOMATION TAIWAN Inc.

ULVAC TAIWAN INC.

62.3

46.5
51.6

23.7

All industries
Manufacturing industries
Manufacturing equipment and devices
1.57

1.50
2.00
1.00
1.50

0.00
（%）
0.50
0.00

1.57
0.69

0.69
June 2009

0.92

0.64

June 2010

0.64
June 2011

0.00

0.92
June 2012

June 2013
0.00

June 2010
June 2011
June 2012
June 2013■ Frequency ratio of
occupational
accidents
throughout
the ULVAC
Group
Japan
China
South
Korea
Group
as a whole
The number of occupational accidents for the entire ULVAC Group has also been decreasing year
Taiwan
North America
Southeast Asia
by year, and the frequency ratio thereof in fiscal 2012 decreased to 10% from two years earlier.
1.20
1.01
1.01
Japan
China
South Korea
Group1.04
as a whole
1.00
Taiwan
North America
Southeast Asia
1.20
1.04
1.01
1.01
0.80
（%）

June 2009

1.00

0.61

0.60
0.80
0.40
0.60
0.20

0.40
0.00
（%）
0.20
0.00

（%）

0.55

0.61

0.55

June 2009

June 2010

June 2011

June 2012

June 2013

June 2009

June 2010

June 2011

June 2012

June 2013■ Product accident counts ratio

This graph indicates product accidents per unit of sales (ULVAC nonconsolidated) relative to the number in the fiscal year ended June 30, 2008,
120 is indexed as 100. Beginning in fiscal 2011, the standard for counting
which
accidents was altered so that all similar accidents concerning the same
product
are counted, which slightly increased the number of accidents. The
100
figure in fiscal 2012 was almost unchanged from the fiscal 2011 level.

6. Emergency life-saving initiatives
We have six AEDs at the Chigasaki Plant, where we are providing
an internal training program to increase emergency life-savingc ap ab il i t i e s an d t h e a w ar e n e s s o f e mpl o y e e s . W i t h t h ecooperation of the Chigasaki Fire Station and the Chigasaki
Association for First Aid Dissemination, we offer a program forthe certification of life-saving capabilities every year. In addition,
we began offering a shorter program limited to minimum lifesaving skills, such as cardiopulmonary resuscitation and use of an
automated external defibrillator (AED), in fiscal 2012. We believe
employees who acquired life-saving skills through these programs
will use them effectively at ULVAC and in their neighborhood.

62.8

46.5
51.6

2.00
2.50

0.50
1.00

Frequency ratio■ ULVAC Safety Organization

Based on the lessons learned from the tsunami disaster after
the Great East Japan Earthquake and subsequent nuclear
power plant accidents, the concept of regional disasterprevention has acquired growing attention.
At ULVAC, we set up a fire prevention unit for each block of
the working area and conducted a disaster drill on a blockbasis to ensure that each block can respond autonomously toan emergency. The drill covered various emergency trainings,
such as for independent emergency evacuation in the event ofearthquake, firefighting, rescue of the injured, evacuation
guidance, removal of obstacles, evacuation on a block basis,
safety confirmation and communication with the headquarters.

62.3

ULVAC

5. Disaster prevention

General Manager

Corporate Environment, Safety & Health Department

62.8

0June 201323.7 In fiscal 2012, ULVAC achieved
The data cover all ULVAC sites and branches.
a zero frequency ratio of occupational accidents.
0
June
2010
June
2011
JuneManufacturing
2012
Juneindustries
2013（Number） June 2009
ULVAC
All industries
Manufacturing equipment and devices
2.50

80
Product accident ratio

ULVAC is fully committed to occupational safety and healthactivities to ensure the safety and good health of ourcustomers and employees. The number of product accidents
at our customer sites has decreased gradually, reaching 62%of the fiscal 2008 level in fiscal 2012. Meanwhile, ULVAC
achieved a zero the frequency ratio of occupational accidents
in fiscal 2012.
ULVAC’s Occupational Safety and Health Management
System (OSHMS) constitutes an underlying structure for all
occupational safety and health activities at ULVAC. Beginningin fiscal 2013, a management review by the General Safety and
Health Manager for the entire company, management reviewsby division managers for their own divisions, and workplacesafety meetings by Safety Officers on a block basis have been

ULVAC Group Organization■20
Frequency
ratio ofoccupational
accidents
at
ULVAC
June 2009
June
2010
June
2011
June
2012
（Number）

Frequency ratio

Occupational Safety and Health

3. Labor safety

▼

100
120

60
40

0

62.3

June 2012

June 2013

46.5
51.6

20

（Number）

62.8

23.7
June 2009

June 2010

June 2011

ULVAC

All industries
Manufacturing industries
Manufacturing equipment and devices

2.50
ULVAC KOREA, Ltd.

ULVAC Head Office/Plant in Chigasaki
2.00
1.57
1.50
1.00

Employees at the office chant about safety measures.

Employees at the production site chant about safety measures.

A lecture on the basics of safety is provided.

0.50

2. Carrying out global measures to address overseas business expansion
In response to the increasingly rapid expansion of the ULVACGroup’s overseas business operations, the importance of safety
activities on a groupwide basis is essential. The ULVAC Grouphas held meetings of the Global Safety Committee attended
by representatives of the Group companies to promote safety
and health activities toward unified goals. In fiscal 2012, welaunched the operation of the OSHMS system throughout theGroup, and each Group company is now making proactive
and independent efforts to promote the system. As a result,contrary to the expansion of businesses, occupational
accidents at ULVAC have been on a gradual decline throughout
the Group.

0.00

（%）

1.20
Disaster drill

1.00

0.69

0.64

0.92
0.00

June 2009

June 2010

June 2011

June 2012

Japan
Group as a whole
Taiwan
North America
1.01

China

June 2013

South Korea

Southeast Asia

1.04
1.01
Emergency life-saving training

0.80

31

ULVAC REPORT 2013

0.60
0.40

0.61

0.55

32

Global Corporate Citizenship Initiatives

Based on its corporate philosophy of contributing to the growth of industry and science with innovative, cuttingedge technologies, the ULVAC Group provides distinctive technological innovations globally and implements
initiatives for solving various social problems by using ULVAC’s technologies and human resources.

An Ping Xing Guang Marathon in Taiwan

Crossing the finish line together!

Giving lectures at junior high schools

Star ting at 5 p.m. on July 20, 2013, employees of ULVAC TAIWAN INC .
p a r t i c i p a t e d i n t h e Ta i n a n A n Pi n g X i n g G u a n g M a ra t h o n h e l d by t h egovernment of Tainan City, an event designed to encourage civic participationand promote tourism in Tainan. The marathon was designed not only toa c h i e v e g o o d h e a l t h a n d b u i l d s t ro n g b o d i e s b u t a l s o t o p ro v i d e a nopportunity to enjoy the beautiful evening view of An Ping, Tainan.
In line with ULVAC’s Occupational Safety and Health Policy for fiscal 2013of promoting mental healthcare to ensure good mental health, President YuChe Tsai and Vice President Yun-Hsiang Wei, together with employees of
ULVAC TAIWAN, participated in the marathon. The voluntary participation of
employees in this sporting event provided a good opportunity to share an
experience other than work and deepen their interaction, as well as to build
up their physical and mental health. A group photo was taken of all theparticipants to commemorate the event.

The South Korea ULVAC Festival ～as a token of gratitude to a nearby neighborhood～
The South Korea ULVAC Festival kicked off on November 10, 2012, as it did infiscal 2011. Because we had anticipated a higher ratio of children coming to
the event, we offered more attractions for children, such as a dance
performance, lotteries and food, which were favorably received by family
visitors.
Other attractions, such as the performance of ACROBATIC CHEER LEADER, amagic show using seafood and a tap-dance performance, were also
appreciated by the local residents. In addition, local agricultural products
were sold at special price and the proceeds therefrom were used to promote
the local welfare. Some employees of ULVAC KOREA, Ltd. displayed special
amusing skills at the festival, which helped them dispel the stress from their
daily lives.
More programs for children offered in fiscal 2012

A report on environmental fund-raising activities
Reliance Electric Limited initiated a drive to raise funds for the environment inAugust 2003. The funds are donated to the Environmental Restoration andConservation Agency (ERCA), through which they are distributed to financially
support the environmental conservation efforts of nongovernmentalorganizations. Since October 2012, Reliance Electric has appeared on the
ERCA Web site, where it is cited as one of the companies that has actively
contributed to the ERCA, praising the company’s consistent efforts to collect
donations for the Japan Fund for Global Environment by placing donation
boxes on each floor of the workplace and carrying out fund-raising
campaigns every June. In March 2013, Reliance Electric also appeared in an
introduction leaflet for the Japan Fund for Global Environment, which has acirculation of 3,000.

A donation box is placed on each floor of the workplace

ULVAC has contributed to school education by letting the teachers working
in Chigasaki City experience the businesses at ULVAC, offering factory tours
for elementary and junior high school students in Chigasaki and visiting themto give lectures on knowledge accumulated through its business operations.
In the lectures given at junior high schools, ULVAC employees discussed
the job of a“scientific engineer.”To help familiarize the students with“vacuum,”the core element of ULVAC businesses, the lecturers showedvacuum pumps and conducted the Magdeburg hemispheres experiment andother experiments to demonstrate how an object behaves in a vacuum.
These lectures were well received by the students. Through these efforts to
support school education, the ULVAC Group will continue to be actively
involved in educating children who will forge the world’s future.

Magdeburg hemispheres experiment

The ULVAC Group’s regional cleanup activities
The ULVAC Group companies in Japan and abroad have been actively involvedin cleanup activities in their respective regions. Growing environmental
awareness has expanded the range of cleanup activities, some of which arelisted below.
■ULVAC, Inc. ULVAC TECHNO, Ltd. and ULVAC-PHI, Inc.
Participated in beach cleaning activities organized by Chigasaki City.
■ULVAC TOHOKUThe ULVAC Group took the initiative in cleaning the roads within the
Hachinohe Kita Intersection Industrial Estates.
The companies with business facilities in Hachinohe High Tech Park
participated in volunteer cleaning activities of the High Tech Park andHachinohe Kita Intersection Industrial Estates.
■ULVAC TECHNO, Ltd
At the 12 locations of ULVAC TECHNO, Ltd, employees participated incleanup activities, including one led by the Furagomi trash-picking
volunteer group in Susono (Susono CIP) and the Hakusan City CleanupCampaign for the Second Half of Fiscal 2012 (Ishikawa CS).
■ULVAC-RIKO, Inc.
Employees cleaned the roads around the company facilities every morning.
■TIGORD CORPORATION
Employees performed outdoor cleaning activities around the Sammu
Office.
■Reliance Electric Limited
Employees volunteered to clean the Marine Park in Kanazawa-ku,
Yokohama City.
■ULVAC KOREA, Ltd.
Performed cleaning activities around the Pyeongtaek and Hyeongok plants
on a monthly basis.
■ULVAC Tianma Electric (Jingjiang) CO., Ltd.
Participated in a cleaning activity organized by Shanghai City and cleaned
areas around the Tianma plant.

ULVAC TECHNO, Ltd Oita CS Center

ULVAC-RIKO, Inc.

Reliance Electric Limited

33

ULVAC REPORT 2013

34

▼

▼

Management

ULVAC REPORT 2013

ULVAC Group CSR Management

CSR Activities for Fiscal 2012 and Targets for Fiscal 2013
Based on its corporate philosophy of contributing to the growth of industry and science with innovative,
cutting-edge technologies, the ULVAC Group provides distinctive technological innovations globally andimplements initiatives for solving various social problems by using ULVAC’s technologies and human resources.
Stakeholders

Customers

Suppliers

Communication guidelines

Fiscal 2012 targets

With a high priority on a trusting relationship with・Claim Management System

customers, we engage in various efforts to enhance

・Globalization of the ULVAC brandthe quality and safety of our products.

・Globalization of the quality inspection system

We strive to maintain and promote fair andappropriate transactions with our suppliers to help
establish a secure relationship of mutual trust.

◎: Higher achievements than targeted ○: Targets achieved or proceeded as planned △: Effort required ×: Further effort required

・Improve profitability through various cost-cutting
measures.
・Supplier certification system

Fiscal 2012 achievements

promotion of the ULVAC brand and quality inspection,
contributing to the enhancement of product quality andShareholders
and investors

business ac tivities an d financial info rmatio n topromote communication with shareholders andinvestors.

・Issuance of ULVAC REPORT

business operating divisions and reduced costs.
The failure rate has been reduced steadily, andEmployees

working opportunities and an environment in which
they can work in comfort and with a sense of
security.

・Revision of the personnel system
・CSR awareness survey○

Responded to 164 analyst/investor relations issues during the year.

－

・Promoting mental and physical health・Operation of the occupational safety and healthmanagement system to decrease accidents by half○

・Reviewed the systems of remuneration (salaries and bonuses) andevaluation, and completed a revision of the relevant regulations.*
・Established the portal Web site“UL-HEALTH”for employees, andaccess to health information on the Web site was increased.*◎・Established the Health Management Regulations and the Detailed Regulations for
Ensuring Mental Health to enable the systematic promotion of health management.*・Achieved a zero frequency ratio of occupational accidents.
・The rate of product accidents remained almost unchanged from fiscal 2011 level.

through cost reduction in front-end processes by involving indesign reviews at the design stage in operating divisions.

○the results disclosed in the ULVAC REPORT.*of ISO9000/14000.

Reduce costs of the ULVAC Group on a consolidated basis○

・Financial results presentation materials and otherIR communication

・Promote the introduction of the global integration certification
・Review systems for quality inspection.

Issued the ULVAC REPORT, an integrated report of the Annual and CSR reports.

Conducted the CSR awareness survey at ULVAC, with

We endeavor to provide employees with diverse○

safety.

Actively involved in the production processes of the

Fiscal 2013 targets

・Review the Claim Management System (ULKES-QMS).

Built up global systems for claim management andimprovement initiatives for overseas facilities have started.
We endeavor to ensure the timely disclosure of

Self-assessmentof the fiscal 2012
achievements△

Promote the simplification of acceptance inspection procedure via
the supplier certification system, thereby ensuring good quality.

Promote efforts at corporate communication.
Increase the number of analyst/investor relations activities.
Continue the CSR awareness surveys and have opportunities for
feedback from employees to promote the CSR activities.
・According to the revised system for evaluation, provide trainings
for evaluators to ensure the practical application of the system.*・To help enhance the work-life balance of employees, provide
education on labor management.*
・According to the Health Management Regulations, ensure
follow-up measures to health checkups to reduce health risks.*
・Perform mental health checkups and provide personal interviews withthose who require treatment to prevent the occurrence of mental illness.*
・Provide mental health seminars on a continuous basis to help create aworksite where employees can work with comfort and enthusiasm.*

Continue the zero frequency ratio of occupational accidents.
Decrease product accidents by half.

・Launched the sale of the PHI X-tool Automated XPS Microprobe featuring less power consumption.
Develop and sell products that contribute to
reducing the environmental burden.
We will consider environmental conservation in all

Environment

resin glazing components for automobiles.

◎

・The ECOR-3 portable small power generation system, which operates on hot water and cold water, won theDevelop and sell products that contribute to reducing theenvironmental burden.

Regional Environment Technology Award at the 29th Kanagawa Industrial Technology Development Awards.

aspects of our business activities and will contribute・Despite efforts to make efficient use of energy, the environmental burden increased

to develop a better place to live and an enrichedsociety.

・Released the“ULGLAZE system”for polycarbonate (PC)

Decrease the environmental burden of our offices.

to 115.7% from the previous year mainly due to a rise in the CO2 emission coefficient.
・Promoted optimization of waste treatment and conversion of waste into resources.

◎

Decrease the environmental burden of our offices.

・Achieved zero environmental accidents.

Local
community

We perform social contribution activities based on
the practices and cultures of the countries andregions in which we operate.

Promote active involvement in and raise awareness of

ULVAC employees participated actively in external

environmental activities, thereby making a social contribution.

environmental activities.

・Tanbo Project・Disaster prevention agreement with Chigasaki City・Munsan River cleanup activity
・Local cleanup volunteering◎

be in its fifth year, to promote communication with the local community.

Institute of Bunkyo University, the rice-field acreage covered by the Tanbo Project
doubled that of 2011 and the annual number of participants increased by 93.
agreement with Chigasaki City. (ULVAC, Inc., did so in 2011.)

environmental activities, thereby making a social contribution.
Aim to achieve 100 participants per event of the Tanbo Project, which will・Due to joint efforts by ULVAC, Inc., ULVAC TECHNO, Ltd. and the Shonan Research

・ULVAC TECHNO, Ltd. concluded a disaster prevention

Promote active involvement in and raise awareness of○
Formulate a policy on social contribution activities.
*These achievements or targets relate to ULVAC, Inc., alone.

35

ULVAC REPORT 201336

▼

Corporate Governance

ULVAC Group CSR Management

Compliance with Laws and Regulations via the Compliance Violation Reporting System
ULVAC has developed a Compliance Violation Reporting
System to minimize the effects of any violations of laws
and regulations. The contact point for the Compliance
Violation Reporting System is the Internal Auditing Officethat serves as the secretariat of the Compliance
Committee, the internal compliance investigation division.
To facilitate the use of the Compliance Violation
Reporting System, the independence of the office’s
activities is ensured, and anonymous information is
accepted. Moreover, the President and general managers

The ULVAC Group regards corporate governance as one of the most important managerial issues to fulfill its
corporate responsibility toward society and shareholders. We place importance on the prompt and efficient
execution of business operations, while securing the fairness, neutrality and transparency of corporate
management. Therefore, we introduced the executive officer system on July 1, 2012 to separate the decisionmaking and business monitoring functions from the business executing function.

Operational Structure

ULVAC’s Management Structure▼Management

ULVAC REPORT 2013

For making decisions on particularly important

ULVAC has the Board of Standing Directors and Auditors

managerial issues, ULVAC has the Board of Directors,

to supplement the decisions made by the Board ofwhich consists of 7 directors, including 2 external

Directors, further enabling the prompt and efficient

directors, and meets as required in addition to regular

execution of business operations. Meetings of the Board

monthly meetings. For monitoring managerial decisionsof Standing Directors and Auditors are held twice aand business execution, ULVAC has the Board ofmonth, and additional ad hoc meetings are held as

Corporate Auditors, which consists of 4 corporate

required. The Board of Standing Directors and Auditors

auditors, including 2 external auditors.

has 14 members consisting of standing directors and

Dealing with Acts of Violation

I f, a s t h e r e s u l t o f a n in v e s t iga t io n , t h e Co m p l ia n c eCommittee finds that laws and internal regulations arebeing violated, action is quickly taken to put a stop to
the act causing the violation. Penalties are imposed on
those involved in the violation, and adequate penalties

of each department serve as members of the Compliance
Committee to ensure prudent examination while assuring
the fairness of internal investigations. Each member isrequired to maintain strict confidentiality, and to operate
the system so that reporters and investigators are nottreated detrimentally. In this manner, internal
investigations are carefully conducted. Numerous
interviews are held with both internal and external
parties, and attorneys attend any cases requiring theirexpertise.

are imposed in the case of serious violations after
examination by the Disciplinary Committee. In addition,
the fundamental causes that brought about the violation
are also studied to formulate effective measures forpreventing recurrence.

executive officers.

Board of Corporate Auditors

Board of Directors

2 Corporate Auditors
2 External Corporate Auditors

Audit

increasingly complex and diverse risk factors, through a process of identification, classification, analysis, andevaluation. By linking the risk management system to strategic business administration, we seek to achieve
Risk Management
even greater corporate
value.

Compliance Committee
ChairmanPresident and CEO
Director in charge of management planning, and others(Administrative oﬃce) Internal Auditing Division

5 Directors
2 External Directors

Risk Management Committee(Controls entire business risks)Creating a Risk Management System

The ULVAC Group believes that expanding the risk

Collaboration

Reportmanagement system is a critical business task. Thus, we

President and CEO

Accounting Audit

Board of Standing Directors and Auditors
Collaboration

Internal Auditing Division

Risk Control
oﬃce

Group Council of Presidents

Collaboration

Risk Controloﬃce

Executive Oﬃcers
Internal Audit

Committee

have established the ULVAC Risk Management Policy to

Risk Control
Risk Control Risk Control Risk Control
ensurethat thereoﬃce
are common
rules
oﬃce
oﬃce
oﬃce across the ULVAC

the position of Chief Risk Officer and shares risk
information with related departments. Important
information is promptly conveyed from the President ofeach group company to the President of ULVAC, Inc.

Group. The President of each group company assumes

・Risk management activities are implemented by the responsible
departments through the PDCA processes.

All Divisions
Group Companies

・Each group company decides upon the necessity of establishing its Risk
Management Committee in consideration of its size and other factors.

ULVAC Risk Management System■ Risk Management System

ULVAC has classified a wide range of risks, and has set
department functions as an information center that works
General Meeting of Shareholders

ComplianceAppointment

Appointment

Appointment

Board of Corporate Auditors

Independent Auditors

ULVAC has established a Corporate Code of Conductconsisting of 18 items that describe the behavioral
standards expected of employees. After describing thedetails, we give employees a booklet that describes the37

ULVAC REPORT 2013

Chief Risk Oﬃcer= President and CEO

Chief Risk Oﬃcer= President and CEO

specific risks. In addition, the responsible departments
constantly collect risk information, respond appropriately

To introduce systems for full compliance with laws and regulations, the ULVAC Group
has systematically
2 Corporate Auditors
2 External Corporate
Auditors
established Compliance Regulations and related rules. In accordance with these regulations
and rules,the
ULVAC Group has also established operational procedures for the Compliance CommitteeandtheCompliance
Collaboration
ReportViolation Reporting System and has been working to cement a spirit of compliance across the company.

Establishment of a Corporate Code of Conduct

with related departments to identify and evaluate all

ULVAC Group companies

ULVAC, Inc.

up departments responsible for eachof them.
As of June30, 2013EachCompliance Committee

to risks and detect issues. For risk information deemed to

Audit

Accounting Audit

Board of Directors

Chairmanbe important in the evaluationPresident
process,
we continually
and CEO
5 Directors
Directorof management
2 External Directors
c o l l e c t in fo r m a t io n t o en ainbchargele pr o m p tplanning,r e sandp others
onses to(Administrative oﬃce) Internal Auditing Division

the President and comprised of the departments
President and CEO

responsible for the risks, has also been established tocontent of this code.

verifythe risk management system. As the supervisingGroup Councilof Presidents

Collaboration

Executive Oﬃcers

The booklet helps employees to act in complianceInternal Auditing Division

with the law as a representative of our business.

Internal Audit(Controls entire business risks)

emergencies. A Risk Management Committee, chaired by

Board of Standing Directors and Auditors
Collaboration

Risk Management Committee

Risk Controloﬃce

Risk Controloﬃce

Risk Control
oﬃce

Reporting and instruction
for improvement

Appointment

Chief Risk Oﬃcer
Chief Risk Oﬃcer
hasanddeveloped
an organization that facilitates prompt and appropriate action against= President and CEO The ULVAC Group= President
CEO

Reporting and instruction
for improvement

Appointment

Independent Auditors

ULVAC Group companies

As of June 30, 2013

General Meeting of Shareholders
Appointment

Risk Management

ULVAC, Inc.

■ ULVAC Management Structure

Risk Management
Committee

Risk Controloﬃce

Risk Controloﬃce

Risk Control
oﬃce

organization for risk management, the Committee meets

twice a year to set out basic policies and improve the
All Divisions

management and operation.
Group Companies

・Risk management activities are implemented by the responsible
departments through the PDCA processes.
・Each group company decides upon the necessity of establishing its Risk
Management Committee in consideration of its size and other factors.

38

▼

▼

Management

ULVAC REPORT 2013

ULVAC Group CSR Management

Board of Directors and Auditors■ Directors■ Executive Officers

Hisaharu Obinata

Shizuo Nakamura

Setsuo Iwashita

Managing Executive Officer

President and Chief Executive Officer

Managing Executive Officer

Akinori Bo

Mitsuru Motoyoshi

Masasuke Matsudai

Hiroyuki Hirano

Takao Nakamura

Hideyuki Odagi

Takashi Minagawa

Syuzo Ikeda

Dr. Paik Choong Ryul

Akira Umeda

Senshu Asada

Kazumi Ohtsuka

Director and Senior Executive Officer

Director and Executive Officer

Director and Executive Officer

External Director

Director and Executive Officer

External Director

Executive Officer

Executive Officer

Executive Officer

Dr. Kazuya Saito
Executive Officer

Executive Officer■ Auditors

Nobuo Oi
Auditor

39

ULVAC REPORT 2013

Hironobu Machidori
AuditorExternal Auditor

External Auditor40

50,000

221,804

232,040400
196,804

163,351

Operating income (loss)

3,483

4,809

1,850

300
(6,384)

Income (loss) before income taxes(1,600)4,558(9,192)(33,704)
200

811

2,138

(8,706)(49,984)(3,807)(38,599)

19,567

11,087

17,827

12,7196,761

68,549221,705
221,705

172,212172,212152,221
152,221

1,961.08

1,992.06

1,787.51

Net income (loss)―Basic200
200
5751.00

18.90

46.60

(176.43)―Diluted

17.44

42.65

－

Cash dividends

21.00

21.00

－

June
June2009
2009

－

251
251 8.18

1
25,00025,00075,0000.72
50,0002.2(87.79)0.8

June
June2010
2010－

June 2010

June
June2011
2011 -3.2
June
June2012
2012 June
June2013
2013

June 2011－

June 2012

－

0.3

0.7

－

Net income / Average shareholders’ equity (ROE)

0.9

2.3

－

Shareholders’ equity ratio

26.4

31.3

28.1

15
1540

14.8

43

－

22.7

34

－

－
14.4
14.4
48

22.7

30
32
U.S. dollar amounts have been converted from yen, for convenience only, using the approximate exchange rate on10
June 30, 2013, which was U.S. $1 = ¥98.63.
10

55
10

Forward-looking statements of the company in this report are based on information available at 3the time these
documents
were
3
1
2.2
2.2
prepared. ULVAC’s customers in the flat-panel display (FPD), solar cells, semiconductor,00andelectronicparts industries face the
1.6
1.6
-3.7
0
0.8
0.8
challenge of the rapid pace of technological advances and fierce competition. Consequently, actual earnings may vary
substantially from the projections included in this report due to a number of factors that-10 could cause, directly or indirectly,
-3.2
-3.2
-5
performance to fluctuate. The factors that could cause results to differ materially from-5thestatements herein include the world
June
2009
June
2010
June
2011
June
2012 June
June2013
2013
June
June2009
2009 June
June
2010
2010
June
June2011
2011 June
June
2012
2012
June
2013
economy; fluctuations in the exchange rate; market conditions for flat-panel displays, semiconductors,
andelectric
devices;andtrends in capital investments.

41

ULVAC REPORT 2013

0.74

0.70

150,000 150,000
30,00030,00020,00020,00020,000100,000 100,000
077-10,000
10,00010,00050,00050,000 -20,000

0.7

200,00■ Europe, others■ Other Asia
■ China■ Korea■ Taiwan■ Japan

17,730150,002,896-8,492 -11,328-14,051-10,876-14,833

100,0050,00-19,820-30,000
00 -31,89100

June 2009 10.06
June 2010 11.06
June 2011 June2012 June
2013
09.06
12.06
13.06
June 2012
June 2009
June 2010
June 2011

33,436

10,0001414

June
June2009
2009 June
June2010
2010 June
June2011
2011 June
June2012
2012 June
June2013
2013

00

0

June 2013■ Capital expenditures/Depreciation (Millions of yen)
■総資産回転率■総資産回転率 ■固定資産回転率■固定資産回転率
expenditures ■Depreciation■Capital600

June
June2009
2009 June
June2010
2010 June
June2011
2011 June
June2012
2012 June
June2013
2013-40,000
0-45,942
June2010
2009 June 20112010 June
2012
June 2009 June
June2011
2012 June
June
2013June 2013
June 2009
June 2010
June 2011
June 2012 June 2013

■ R&D costs (Millions of yen)

■純資産 ■自己資本比率
■営業
■営業CF
CF ■投資■投資CF
CF ■差引
■差引CF
CF

563

325,000
3500
40020,000

10,0002230015,000

2.0
2.0

1.9
1.9
215

271

200
10,000
11
0.72
0.72
100
5,000
0
00

8,000

1.9
1.9

20

Disclaimer regarding forward-looking statements

14.8
14.8
1.9

30,00044,312－■借金依存度（％）■インスタント・カバレッジ（回）－－ 19.4
19.4
20
20
18.3
18.3
17.7
17.7
50

－

0

June 2013■売上総利益率■売上総利益率 ■売上営業利益率■売上営業利益率

Net income / Average total assets (ROA)

2.0

1.9

00

(0.89)(%)

OTHER INFORMATION

41,18750,00050,000100,000

1.6－
June 2009

150,000
75,00075,0001.9
2150,000(U.S. dollars)

806.38(1,012.94)
00
-5

6,579

(Yen)
215
215

271
271

100
100
0

14.4

6,579

50,000200,000 200,000
40,00040,00040,00034,73534,735
163,351

300
300
10

PER SHARE DATA
Net assets

6,981
15
400
400

■ Europe, others
28
28■ Other Asia
■ China■ South Korea■ Taiwan21
21■ Japan0.70
0.70■売上総利益率■売上営業利益率
expenditures■Depreciation■Depreciation■Capital■Capitalexpenditures
25,00025,00019.4

30,00030,00010,0006,000 10,000

0.7
0.7

50,00000

26.4-14,051-14,051-10,876-10,876

25,000-20,000-20,000
2,000

0-30,000-30,000-40,000-40,000

35

31.3
44,312
44,31228.1
2833,43633,4364,000 -10,000-10,000

June
2009
June 2010
June 2011
June 2012 June 20130
2009
2010June
June
2011June
June
2012
June
2013
June
2012
2012
June
June
2013
2013
June
JuneJune
2009
2009
June
JuneJune
2010
2010
June
2011
2011

■借金依存度（％）■借金依存度（％）■インスタント・カバレッジ（回）■インスタント・カバレッジ（回）40,00040,000100,000

20,00020,00075,000

1.9
1.9

251
0.74
0.74

125,000
50,00050,00017,73017,730

14.8

2,896
2,896
-8,492-8,492-11,328-11,328-14,833-14,83321

14

41,1877,878

225,000
100,000
100,000

4,989

7,169

602,616

43,103
43,103
196,804

6,871

18.3

18.3
59,436

7,088
92,023

Number of employees

20

17.7
500
500
41,187

35
35
28.1
28.1

250,00232,040

92,023563
2,466,684 563
19.4

250,000 250,000■営業 CF ■投資 CF ■差引 CF
50,00050,000■総資産回転率 ■固定資産回転率
125,000
125,000
31.3
31.3
26.4
26.4
3
200,000

221,804

102,504

243,289■純資産■純資産■自己資本比率■自己資本比率
300,000
250,000

35,80835,80890,158249,651

10,0002013
2013■Others■Others■Materials■Materials■Industrial
equipment■Industrialequipment
0■Components■Components■Semiconductor■Semiconductor
andandelectronic
electronic
June 2009 June 2010 June 2011 June2012 June 201300
devicedeviceproduction
productionequipment
equipment
June
June2009
2009 June
June2010
2010 June
June2011
2011 June
June2012
2012 June
June2013
2013 ■FPD■FPDand
andPVPVproduction
productionequipment
equipment

50,00050,0008,255
102,504

Net assets/Shareholders’ equity■売上総利益率■売上営業利益率
600
600

7,967

313,616

2010-20122010-2012■Others■Others
andparts
parts■Materialsand■Materials■Industrialequipment
equipment■Industrial■Components■Components
andelectronic
electronic■Semiconductorand■Semiconductor
devicedeviceproduction
productionequipment
equipment■PV■PVproduction
productionequipment
equipment
productionequipment
equipment■FPD■FPDproduction

20,000■ Net sales by region (Millions of yen)

6,761

313,784

100,000
100,000

30,000■ Orders received (Millions of yen)

9.096

318,076

150,000
150,000

223,825

YEAR-END DATA
Total assets

40,00050,583

166,778

4,989

June
June2009
2009 June
June2010
2010 June
June2011
2011 June
June2012
2012 June
June2013
2013

41,187
41,187

7,088

June 2013

12,7198,255

0June 2009 June 2010 June 2011 June 2012 June 2013

00

152,221

8,005

7

0

00
June 2010
June 2011
June 2012
9,096 June 2009
7,967
June
June2009
2009
June
June2010
2010 June
June2011
201180,777
June
June2012
2012 June
June2013
2013

10,717

8,344

25,00050,00050,000235,932

R&D costs

0

14

100,000
100,000
50,000251

92,02392,023

10,71775,00075,000100(5,728)21

14.8

17,827

11,949(565)

221,705
102,504
102,504

12,32061,99911,949Depreciation

271

215
6,115

150,000
150,000
75,00011,087

Capital expenditures

150,000
150,000

1,656,200

200,000
200,000
28

34,735

223,825

100,000

43,103

Orders received

Net income (loss)

1,690,946

2009
2009
Businesses■Other■OtherBusinesses■Others■Others■Components■Components
production■Semiconductorproduction■Semiconductor
equipment
equipment■Display■Displayand
andelectronic
electronicdevice
deviceproduction
productionequipment
equipment

50,00035,808

166,778

163,351
163,351

152,22128.1
196,804
196,804

235,932

31.3

92,023

221,705

232,040
232,040

172,212

235,932
235,932

Net sales

26.4

221,804
221,804

200,000
200,000

35

102,504

2013.06

223,825
223,825

2013.06500
225,000
225,000

2013■Others■Materials■Industrial equipment■Components■Semiconductor and electronic
device production equipment■FPD and PV production equipment

June 2009 June 2010 June 2011 June 2012 June 2013

250,000
250,000

90,1582012.06

172,21290,158
90,1582011.06

125,000

Financial Highlights■ Net sales by business segment (Millions of yen)

250,000
250,000■純資産■自己資本比率

19,5672010.06

Thousands of U.S. dollars
300,000
300,000
Millions of yen (except per share amounts) (except per share amounts)
600
563

12,3202009.06■ Net sales (Millions of yen)

166,778
166,778

FOR THE YEAR DATA

0

June 2009 June 2010 June 2011 June 2012 June 201336,20836,208Financial Highlights

0June 2009 June 2010 June 2011 June 2012 June 2013

8,005
90,1580Finance

50,00036,20875,0008,344▼

ULVAC REPORT 2013▼1

device production equipment■PV production equipment■FPD production equipment-19,820-19,820-31,891-31,8910

70June 2009 June 2010 June 2011 June 2012 June 2013
-45,942-45,942

June 20092010 June
June2010
2011
2012
June 2013
June
JuneJune
2009
2009
June
2010 June
June
June
2011
2011
June
June2012
2012 June
June2013
2013■総資産回転率 ■固定資産回転率

42

■

▼

Analysis of Business Results

The operating results of the vacuum application business by market segment are as follows:■ Materials

Semiconductor andelectronic device
production equipment
22,360(13.7%)

Components
23,372(14.3%)

00

ULVAC REPORT 2013

09.06
09.06

20
20 17.7
17.7
15
15

50,00050,000232,040
232,040

25,00025,000100
100

Taiwan15,256（9.4%）

10.06
10.06

11.06
11.06

18.3
18.3

19.4
19.4

12.06
12.06

22.6
22.6

00

13.06
13.06

09.06
09.06 10.06
10.06 11.06
11.06 12.06
12.06 13.06
13.06■総資産回転率■総資産回転率 ■固定資産回転率■固定資産回転率
33

14.8
14.8

50,00050,00028
28

40,00040,000212130,00030,00014
14

20,00020,00077

10,00010,00000

00

43,103
43,10375,00075,000

22.7
22.7

35
35

30,84730,847

215
215

200
200

332

251
251

28.1
28.1

34,73534,735

271
271

31.3
31.3

35,80835,808

300
300

26.4
26.4

59,43659,436

100,000
100,000■売上総利益率■売上総利益率 ■売上営業利益率■売上営業利益率

43

125,000
125,000

400
400

total
163,351■ SG&A expenses (Millions of yen）

■純資産
■自己資本比率assets ■Shareholders’equity ratio■Total net

563
563

500
500

South Korea
28,059（17.2%）「Overseas」
90,130（55.2%）

600
600

08.06
08.0609.06
09.0610.06
10.0611.06
11.0612.06
12.06■ Total net assets (Millions of yen）／
Shareholders’equity ratio (%)

41,187
41,187

Industrial equipment
23,879(14.6%)

Europe, others
9,649（5.9%）
China
28,619（17.5%）

00

08.06
08.0609.06
09.0610.06
10.0611.06
11.0612.06
12.06

92,02392,023

total
163,351

Material
13,915(8.5%)

50,00050,000102,504
102,504

FPD・PV
production
equipment
57,671(35.3%)

Others22,154(13.6%)

100,000
100,000■ Debt ratio（％）
「Japan」
73,221（44.8%）

Other Asia
8,546
（5.2%）

2008-20102008-2010■-------■-------■-------■-------■-------■-------150,000
150,000■-------■-------■-------■-------2011-2012
2011-2012
100,000
100,000■-------■-------■-------■-------■-------■-------50,000
50,000■-------■-------■-------■-------■-------■-------00■-------08.06
09.06
10.06
11.06
12.06
08.06 09.06 10.06 11.06 12.06 ■-------200,000
200,000

36,20836,20875,00075,000150,000
150,000

sales of the mask blanks business remained steady, mainly
in association with small to medium-sized LCDs and touch
panels, supported by favorable markets for smartphones andtablet PCs.
A s a result , th e vacu u m ap plic atio n b usin ess s aw o rd e rs
received of 36,496 million yen, an order backlog of 11,221
250,000
250,000
million yen and net
sales of 36,068 million yen. Operating
profit was 588 million yen.
196,804
196,804

150,000
150,000

200,000
200,000

223,825
223,825

225,000
225,000

241,212241,212In the control-system-related market segment, although sales
were posted mainly in the Japanese automobile industr y,o rd e rs re ce i ve d re m ai n e d s t a g na nt d u e to t h e i m pa c t of
postponed or temporarily abandoned investment projects
destined for China. With respect to analysis devices, orders
received and sales remained steady mainly from private-sector
250,000
300,000
250,000
300,000
companies
and national research institutes
in Japan, theUnited States and Europe. Meanwhile, orders received and221,804
221,804■ Others

00

VacuumEquipment Business
127,282(77.9%)

decreasing year on year, further af fected by the impact of
decreased production due to production adjustment in thesemiconductor-related sectors.

With respec t to the sput tering target material s for LCDs ,the business environment was continuously severe with low
operating rates at the factories of major panel manufacturers.
In addition, sales and orders received remained sluggish, both

90,15890,158■ Net sales by region（Millions of yen）

Vacuum Application Business

152,221
152,221■ Net sales by business segment（Millions of yen）

■ Industrial equipment
In the industrial equipment-related market segment, salesof vacuum heat treatment furnaces for automobile par t s,
au to m a t i c h el iu m lea k tes t s y s te m s , m e di c al - u s e d r y in gequipment and vacuum distilling systems for health foods
remained robust, increasing year on year.
A s a re s u l t , t h e v a c u u m e q u i p m e n t b u s i n e s s s a w o rd e r s
received of 130,283 million yen, an order backlog of 61,323
million yen and net sales of 127,282 million yen. Operating
profit was 5,411 million yen.

235,932
235,932

In the PV-related market segment, some orders were received
for high-efficiency crystal-type PV cell production equipment
and sales were posted mainly for compound - t ype PV cell
production equipment to South Korea and Taiwan. Capital
expenditures remained stagnant in the market despite an
enthusiastic backing of the PV cell market supported by thegovernment’s subsidy policy.

■Components

221,705
221,705■FPD production equipment and PV production equipment
In the FPD-related market segment, orders received increased
year on year for organic EL production equipment for mobile
d e v i c e s a n d l i g h t i n g m a i n l y t o t h e A s i a n re g i o n a n d LC D
produc tion equipment for l arge LCD T Vs mainly to China.
Sales were posted for sput tering equipment for large LCD
T Vs , sput tering equipment for the produc tion of small to
medium-sized LCDs for mobile devices, plasma- enhanced
chemical vapor deposition (PE-CVD) equipment and organic EL
production equipment.

received for equipment for smartphone-related foundries was
not achieved. Orders received for and sales of LED productiondedicated dry-etching systems and deposition systems werelower than anticipated due to the lack of the enthusiastic
backing of demand for LEDs, which are mainly used for lighting
and LCD backlights as energy-saving means.

In the component-related market segment, orders received
for dr y pumps and vacuum pumps for semiconductor
production equipment remained sluggish, affected by weakcapital expenditures in the FPD and semiconductor industry.
Meanwhile, orders received and sales related to cryopumps
for organic EL production, which are slated for mobile devices
and the optical field, and small pumps used in analysis devices
and medical equipment remained robust. Consequently, bothorders received and sales increased year on year.

172,212172,212The operating results of the vacuum equipment business by market segment are as follows:

In the semiconductor and electronic device-related markets e g m e nt , b ot h o rd e rs re cei ve d an d s ales d e clin e d in t h egenerally harsh business environment, affected by the sluggishd e m a n d f o r P C s . A l t h o u g h o rd e r s w e re re c e i v e d f o r t h e
ENTRON™-EX series of sputtering equipment not only for postprocesses but also for pre-processes, overall recovery of orders

293,110
293,110a n d cu t t in g b a c k c a p i t al e x p e n di t u re s . We al s o p u s h e dahead with curtailment of production costs. In addition, in an
extremely severe order reception environment in the FPD andsemiconductor industry, we carried out emergency measures toreduce fixed costs.
A s a result, regarding the consolidated performance for the
fiscal year ended June 30, 2013, orders received increased by
14,558 million yen, or 9.6%, year on year, to 166,778 million
yen, supported by such contributive factors as increased orders
received for FPD production equipment such as organic EL.
However, net sales dropped by 33,453 million yen, or 17.0%,
to 163,351 million yen, affected by negative factors such as thedelayed timing for order reception. For consolidated profit andloss, operating profit amounted to 6,115 million yen (comparedwith an operating loss of 6,384 million yen recorded for theprevious fiscal year) and ordinary profit was 6,264 million yen(compared with an ordinary loss of 6,497 million yen recorded
for the previous fiscal year), thereby recording a surplus throughefforts to promote business structure improvement and cost
reduction despite a decline in net sales. Nevertheless, a net
loss of 3,807 million yen (compared with a net loss of 49,984
million yen recorded for the previous fiscal year) was recorded
particularly due to the posting of 6,089 million yen in businessstructure improvement expenses under extraordinary losses,
which were derived from the review of parts of unprofitableproducts and transactions in the materials business sector. The
breakdown of the business structure improvement expenses of
6,089 million yen includes a loss on devaluation of inventories of
5,398 million yen and an impairment loss of 691 million yen foridle assets.

Vacuum Equipment Business

Vacuum Application
Business
36,068(22.1%)

Financial Highlights■Semiconductor and electronic device production equipment□ Business results for the current fiscal year
During the fis c al year ende d June 30, 2013, the Japanese
economy rallied steadily despite some uncertainties, reflecting
solid personal consumption and the improvement of corporate
profits mainly due to the rise in stock prices and the correctionof the yen appreciation, which were at tributable to various
economic policies taken by the Japanese government. In the
United States, a gradual undertone of recovery was seen withpositive signs such as improved personal consumption and a
decline in the unemployment rate. In Europe, concerns about
the future of public finance and a heightened unemployment
rate remained in several countries despite positive signs of theeconomy having bottomed. The pace of growth of the Chinese
economy gradually slowed, reflecting the slowed grow th inpersonal consumption and exports.
Under these circumstances, in the fl at panel displ ay (FPD)
industry in which ULVAC’s main customers are involved, capital
expenditures related to large LCD TVs remained stagnant due tothe sluggish TV market. Although a temporary pause was seen incapital expenditures for small to medium-sized LCDs for mobile
devices, signs of recovery were seen partly with the trends incapital expenditures relating to organic electroluminescence(EL) displays, which have drawn people’s attention as a nextgeneration display. Although demand for PCs remained stagnant
in the semiconduc tor industr y, several customers st ar ted
proactive moves aimed at resuming capital expenditures in lightof the bottoming for memory prices.
In terms of profits, given sustained requests for price reductions
f rom cus tomer s and s e v ere price comp e tition w it h o t her
manufac turers of produc tion equipment , we s treamlined
fixed costs by trimming various expenses across the Group▼

FinanceULVAC REPORT 201309.06
09.06 10.06
10.06 11.06
11.06 12.06
12.06 13.06
13.06

■営業
■営業CF
CF ■投資■投資CF
CF ■差引■差引CFCF50,00050000
40,00040000
30,00030000

44,312
44,312

44

33,43633,43622,35722,357▼□ Analysis of Financial Position□ Business and Other Risks

1 Assets, liabilities and net assets at fiscal year-end●Assets

M aj o r p o t e n t i a l f a c t o r s t h a t c o u l d i n f l u e n c e b u s i n e s s
performance and the financial position of the ULVAC Groupare as follows:

Total assets decreased by 6,362 million yen compared with theend of the previous fiscal year. This decrease was attributable todecreases of 5,281 million yen in notes and accounts receivable,
trade, 13,301 million yen in inventories and 3,903 million yen in
construction in progress, which were partly offset by an increaseof 16,206 million yen in cash on hand and in banks.

1 Fluctuations in the Markets for FPDs,
Photovoltaic Cells (PVs) and Semiconductors

The ULVAC Group has grown by developing proprietary
technologies for vacuum equipment used in the manufacturing
process of FPDs, PVs and semiconductors, and by marketingsuch devices, which has allowed us to build market sharesin these fields. These products account for about 50% of ourconsolidated net sales and have become the mainstay of theGroup. However, any large reduction in capital expenditures by
manufacturers of FPDs, PVs and semiconductors, our corporate
customers, or any deterioration in the financial conditions of
our corporate customers could affect our business results andfinancial position.

●Liabilities

Total liabilities decreased by 24,611 million yen compared withthe end of the previous fiscal year, chiefly owing to decreasesof 10,000 million yen in commercial paper, 4,288 million yen inprovision for loss on contract, 7,276 million yen in“Other”undercurrent liabilities and 4,134 million yen in long-term debt.

●Net assets

2 Influence of Research and Development

Total net assets increased by 18,249 million yen compared withthe end of the previous fiscal year. This increase was primarily
attributable to an increase of 15,000 million yen in capital surplus.

Based on sustained proactive investment in research anddevelopment, the ULVAC Group has consistently brought
new products to market using cutting-edge technologies.
However, if it becomes extremely difficult to achieve thedevelopment that meets the requirements indispensable forthe commercialization of new products or such development
is markedly delayed in comparison with the envisioned plans,
our business results and financial position could be affected
adversely.

2 Cash flows●Cash flows from operating activities

250,000

3 Influence on 200,000
Pricing Competition

232,040

241,212Net cash provided by operating activities amounted to 22,357
million yen, reflecting positive factors such as depreciation
and amortization, a decrease in accounts receivable, trade, adecrease in inventories and an increase of advances received,
250,000
300,000
as well as negative factors such as net loss before income taxes
and minority interests, a decrease in accounts payable, trade, a
200,000
decreasein provision for loss on contract and special additional
225,000
retirement benefits paid.
293,1105 Influence of Global Business Development●Cash flows from financing activities

92,02390,158As a result, consolidated cash and cash equivalents
were
75,00025,000

11.06

12.06

13.06

09.06 10.06 11.06 12.06 13.06■ Gross profit to net sales（％）／
Operating profit to net sales（％）■ Total assets turnover（Times）／
Fixed assets turnover（Times）■Gross proﬁt to net sales ■Operating proﬁt to net sales
22.6
19.4
20
18.3
17.7

■Total assets turnover ■Fixed assets turnover

5

3.7
1.6
09.06

2.2
10.06

0.8
11.06

34

1.9

2.0

1.9

1.8

0.72

0.70

-3.2
12.06

48

13.06

0

10.06

9 Litigation-Related Risk

There is a risk in which the Group might be targeted in any
lawsuits in Japan and overseas with regard to the businesses
i n w h i c h t h e G ro u p e n g a g e s . A n i m p o r t a n t l a w s u i t f i l e dagainst any of the Group companies could negatively affectour business results and financial position.

10 Other Risks

As applicable to companies that engage in global operations
or in a wide range of business areas, the Group’s businessresults and financial position could be negatively af fectedby global and local economic climates, or any event of force
majeure, such as natural disasters, acts of war or terrorism, or
infectious diseases.

● Debt-to-total assets ratio（％）Interest coverage ratio（Times）■Debt-to-total assets ratio（％） ■Interest coverage ratio
50

43

40

48
32

34

3

3

1

09.06

10.06

11.06

30

8 Impact on Financing

A financial covenant may often be incorporated into someof the loan agreements that the Group has entered into withfinancial institutions. Any violation of such financial covenants
might negatively influence our business results and financial
position.

0.74

0.70

0.66

11.06

12.06

13.06

-10,876-20,000

22,357
17,851-14,833

4,506-11,328-19,820-31,891□ Total number of stocks authorized

44

20
10
0
-10

4
-4
12.06

13.06

10.06

11.06

Number of Shareholders (Common Stock) total：22,755shareholders

Common stock................. 100,000,000
Class A classified stock............... 1,500
Class B classified stock.............37,500□ Total number of stocks issued

Common stock....................49,355,938□ Total number of shareholders

Common stock............................22,755

Class A classified stock............... 1,500

12.06

Individuals and Other 	������������������������������������������������������������������������������������������������������� 22,316 shareholders
Domestic Corporations 	������������������������������������������������������������������������������������������������������������� 190 shareholders
Foreign Companies	������������������������������������������������������������������������������������������������������������� 132 shareholders

Financial Institutions 	����������������������������������������������������������������������������������������������������������������41 shareholders
Securities Companies 	����������������������������������������������������������������������������������������������������������������39 shareholders
Foreign Investors	����������������������������������������������������������������������������������������������������������������36 shareholders

Class A classified stock....................... 1

TAIYO FUND, L.P.
Nippon Life Insurance Company
Sumitomo Mitsui Banking Corporation
Japan Trustee Services Bank, Ltd.(Trust account)
Association of Employee Shareholders of ULVAC
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Inabata & Co., Ltd.
BANK OF NEW YORK MELLON SA/NYFOR BNY GCM CLIENT ACCOUNT ELS CB
Sumitomo Mitsui Trust Bank

-45,94209.06

Stock Information (As of June 30, 2013)

Mizuho Bank, Ltd.

2,896
-8,492-14,051-10,000-40,000
09.06

The Group owns numerous patents related to various types of
vacuum systems and proactively aims to acquire intellectual
property rights. Moreover, ULVAC examines the patents of third
parties concerning such products. However, unforeseeable
litigation brought by a third party for a breach of patent rights
might pose risks that could negatively affect our businessresults and financial position.

Shareholder’s name
■Free cash ﬂows

17,73010,0000

1

7 Influence of Intellectual Property Rights

Tresury stock：1 shareholders

Number of Shares Held (Common Stock)

Major Shareholders (Common Stock)

33,43620,000-30,000■借入金依存度 ■インスタント・カバレッジ
50
43 2013ULVAC REPORT
40

1.9

Number ofshares(thousands)

8,538
3,242
1,916
1,864
1,016
1,000

(%)

17.30
6.57
3.88
3.78
2.06
2.03

910

1.84

727

1.47

702

1.42

795

1.61

total：49,355,938 shares

Individuals and Other 	����������������������������������������������������������������������������������������������������������� 16,141,163 shares
Foreign Companies	����������������������������������������������������������������������������������������������������������� 15,048,675 shares

Financial Institutions 	����������������������������������������������������������������������������������������������������������� 12,870,220 shares
Domestic Corporations 	������������������������������������������������������������������������������������������������������������� 4,586,326 shares
Securities Companies 	����������������������������������������������������������������������������������������������������������������� 641,561 shares
Foreign Investors	������������������������������������������������������������������������������������������������������������������� 65,003 shares
Tresury stock：2,990 shares

13.06■設備投資額 ■減価償却費
25,00010,00020,000

8,000

67

-5

40,0002

The Group has installed quality assurance systems, acquired
ISO9001 certification and has been providing services witha high level of customer satisfaction. As ULVAC continuallyprovides products with leading-edge technologies, there are
numerous development elements that could lead to a situationin which ULVAC has to collect and repair products free ofcharge due to some unforeseeable defect; this could affect ourbusiness results and financial position.

13.06

44,312

,586

14.4

10

12.06

■Cash ﬂows from operating activities■Cash ﬂows from investing activities
50,0003

11.06■ Cash flows (Millions of yen)

30,00015

009.06 10.06

46
255

10.06

05

09.06

0

344

100

45

41,187

271million yen at the end of the current fiscal year, up
300
44,204251
215
50,00016,024 million yen from the end of the previous fiscal year.
200

30,847100,000

102,504

liabilities.

400

26.4

34,73531.3
decrease in long-term debt and the repayment of lease500

43,103125,000

59,436563

35,808■純資産 ■自己資本比率

term borrowings, a net decrease in commercial paper, a

36,208T h e ove rs ea s n et s ales rat i o o f t h e U LVAC G ro u p is h i g h ,w i t h S o u t h Ko re a , Ta i w a n , C h i n a a n d o t h e r e c o n o m i e s ,particularly in the Asian region, occupying larger shares. To
avoid currency exchange risks, transactions by ULVAC are, as
35
50,000a rule, denominated in yen. However, in the context of sales
28.1
to the Asian 28
region at a40,000
time of yen appreciation, the Group isplaced22.7
at a disadvantage in its price competitiveness relative
30,000to14.8overseas 21
manufacturers
in yen-denominated transactions.
I f U LVA C c o n d u c t s a n e x c e p t i o n a l f o r e i g n - c u r r e n c y 14transaction,
20,000denominatedsudden exchange rate fluctuations
might cause losses in the exchange. The aforementioned
7
10,000fa c to r s co u ld n e ga t i ve ly a f fe c t o u r b u s i n e s s re s u l t s a n dfinancial position.
00

million yen, chiefly arising from a net increase in short600

6 Influence of Quality Assurance Efforts

Financial Highlights

4 Influence of Increased Overseas Sales

N e t c a s h u s e d in f in an c in g a c t i v i t i e s t o t al e d 3, 619

0

196,804

221,804

223,825

235,932

152,221

172,212221,705

2008-2010■-------Although in the FPD industry―ULVAC’s principal
customer■-------―demand for digital home appliances remains robust,■-------- there
150,000
150,000
is constant pressure
from the customer side to lower■--------prices.
■--------Korea,
150,000
In addition, new competitors are emerging in South●Cashflows from investing activities
2011-2012
100,000
Taiwan and China,
further intensifying sales competition.
N e t c a s h u s e d in in v e s t in g a c t i v i t i e s a m o u100,000
n t e d t o 4 , 50 6■-------These factors, combined with higher costs caused■-------by surging
million yen, which was mainly at tributable to the payments
75,000■-------prices for raw materials
for acquisition of tangible and intangible fixed assets
50,000 and the
50,000 and goods purchased, could affect our■-------business results and financial position.
purchase of stocks of subsidiaries and affiliates.
■-------■-------00
008.06 09.06 10.06 11.06 12.06
08.06 09.06 10.06 11.06 12.06
08.06 09.06 10.06 11.06 12.06 ■--------To secure market share in China, a prospective future growthmarket, the Group has proactively advanced into China andis pursuing business initiatives through locally incorporated
subsidiaries. Although arrangements have been put into place
at locally incorporated subsidiaries for gauging businessconditions and taking corrective actions when needed, risks
such as various restrictions and/or changes in tax/exchange
rate systems due to unforeseeable changes in legal systems,
political instability, business fluctuations and an outflow of
personnel could affect our business results and financial
position.

▼

FinanceULVAC REPORT 2013

www.ulvac.co.jp

ULVAC, Inc.
2500 Hagisono, Chigasaki, Kanagawa 253-8543, Japan
Phone +81-467-89-2033