60
years

CSR & Annual Report

U LVAC R E P O RT 2 0 1 2

About the ULVAC Group

Vacuum Equipment Business & Vacuum Application Business▼

The ULVAC Group practices CSR by fulfilling its responsibilities to all stakeholders andcontributing to society through the research and development of cutting-edge technologies.

Others・Surface analytical Equipment
・Control System▼

Flat-panel display (FPD)
production equipment▼

Vacuum application business▼▼Business Segments of the ULVAC Group
Vacuum equipment business・Contract manufacturing

OthersMaterials

Materials and parts

・Liquid crystal display (LCD) production equipment

・Sputtering target

・Plasma display production equipment・Active metal-based materials with high melting points andIndustrial
equipment

・OLED production equipment
・Inkjet printers

Photovoltaic cell (PV)production equipment

Industrial equipment

・Vacuum winding and evaporation equipment
・Vacuum heat treatment furnaces ・Vacuum brazing furnaces
・Vacuum melting furnaces ・Mass-production equipment for
rare-earth permanent magnets ・Vacuum sintering furnaces
・Vacuum freeze-dryers

・Thin-ﬁlm-type silicon solar cell production equipment
・Crystal-type solar cell production equipment
・Compound-type solar cell production equipment
・Quick charger systems for photovoltaic power generationand electric vehicles

Components
Semiconductor
andelectronic
deviceproduction
equipment

Components

・Vacuum pumps ・Various vacuum gauges
・Helium leak detectors
・Mass spectrometers ・Surface proﬁle measuring equipment
・Solar cell measuring equipment▼▼

・Nano metal ink▼

FPD & PVproduction
equipment▼

the fabrication of parts

・Semiconductor production equipment(for memories, power semiconductors, etc.)
・Light-emitting diode (LED) production equipment
・Electronic device production equipment

ULVAC Group’s 60-Year Milestones
The Chigasaki Head Office / Plant wascompleted.

1990:

2004: New buildings of Chigasaki Head Oﬃce/Plant were completed.

▲

Established ULVAC
s first overseas local
corporation in Hong
Kong.

▲

▲

1968:

▲

1964:

▲

1952:

JAPAN VACUUM ENGINEERING
CO.,LTD. was established.

Semiconductor and electronic
device production equipment

Established the Fuji Susono Plant as a dedicatedplant for semiconductor
production equipment.

▲

2004: Listed its stock on the First Section of the Tokyo Stock Exchange.
2004: Established a production base for full-scale vacuum equipment in Suzhou, China.

▲

▲

2005:

Established a large-scale production base for large LCD production equipment in South Korea.

▲

1972:

Stock listed on the First Sectionof the Tokyo Stock Exchange

Chigasaki Head Oﬃce/Plant

Established a production subsidiary for large LCD production equipment in Taiwan.
▲

2007:

▲

1995:

2006:

▲

Established the Institute for Super
Materials as ULVAC s ﬁrst full-scale
research institute.

E s t a b li s h e d
the Yokohama
Plant.

1980

1990

2011:

Established the Institute for Super
Materials in South Korea

2000

2010

▲

19561959:

1970

1960

Established The Institute for
Semiconductor Technologies.

▲

Established the
Omori Plant
and started
manufacturingof equipment
domestically.

Established the Chiba Tomisato Plant for the development
and manufacturing of materials.

2001:

▲

▲

1950

1959:

▲

1955:

E s t ablishe d a pr o duction base in China
and a sales/service
base in South Korea.

Launched the dedicated LCD production SMD
S e ri e s d e p o s iti o n s y s te m , w hi c h b e c a m e acornerstone of the FPD business.

▲

▲

1988:

The SHD Series, a sputteringsystem for manufacturing harddiscs, became a hit globally.

2007:

Received an order for an integrated
production line for thin-film solar cells(TFSCs).

Launched the dedicated LCD production SMD
Series deposition system, which became a cornerstone of the FPD business.

2008:

▲

▲

1976:

1986:

The MCH Series,
the world s firstmulti-chamber sputtering system, hasbeen acclaimed bymany semiconductor manufacturers.

▲

▲

1992:

Developed large vacuum equipment for heavy industries
such as vacuum melting furnaces and vacuum distilling
equipment.
Delivered SYSTEM 731, theworld s first computer-controlled, fully automatic vacuum
evaporation equipment to IBM.

2008:

▲

1960:

▲

Extended business fields as anintegrated vacuum
manufacturer
through a merger
with Toyo Seiki
Vacuum ResearchCo., Ltd. (1956), andthe transfer of engineers from Tokuda
Manufacturing Co.,
Ltd. (1959).

Developed Magrise, a system for the massproduction of rare-earth permanent magnets, andthe integrated mass-production technology for thinfilm lithium secondary cells as promising post-FPD
businesses.

▲

1952:

Received the ﬁrst order of vacuum evaporation equipment
for coating automobile parts from HAKKOSHA.

1

B u s i n e s s S e g m e n t s a n d 6 0 -Ye a r M i l e s t o n e s2

U LVA C R E P O R T 2 012

Corporate Profile of ULVAC Group■ Name：ULVAC,Inc.

■ Head Oﬃce：ULVAC, Inc.2500 Hagisono, Chigasaki, Kanagawa■ Established：August 23, 1952

■ Capital：20,873,042,500 yen (As of September 27, 2012)

Editorial Policy
We have integrated the previous Annual Report and■ Business Areas：Development, manufacturing, sale, and customer support for vacuum equipment, peripheral devices, vacuum
components, and materials for the display, solar cell, semiconductor, electronic, electric, metal, machinery, automobile, chemical,

the CSR Report into this ULVAC REPORT for the fiscal

About the ULVAC Group

year ended June 30, 2012. This report is published toBusiness Segments of the ULVAC Group .............................1

promote understanding of the ULVAC Group s operating

ULVAC Groupʼs 60-Year Milestones ....................................1

results and CSR activities among our stakeholders, andCorporate Profile of the ULVAC Group ...............................3

Additionally, research guidance and technical advising on vacuum technology in general.
ULVAC SINGAPORE PTE LTDULVAC TECHNO, Ltd.
ULVAC Technologies,Inc. ULVAC MALAYSIA SDN.BHD.
Pure Surface Technology,Ltd.
ULVAC KOREA,Ltd.
ULTRA CLEAN PRECISIONTECHNOLOGIES CORP.

▼

Business Domains of the ULVAC GroupULVAC COATING CORPORATIONULCOAT TAIWAN,Inc.
TIGORD CO.,Ltd.

ULVAC, Inc.
ULVAC (SUZHOU) Co., Ltd.

Coating Business

Report's Scope and Period

Electronic device
production
technologies

ULVAC Group

System controller
solutiontechnologies
System controller
solutions

Reliance Electric Limited
RAS Co., Ltd.
ULVAC Automation Technology (Shanghai)
Corporation
ULVAC AUTOMATION TAIWAN INC.

ULVAC, Inc.
ULVAC Opto-electronics Thinfilm
Technology (Shenzhen) Co., Ltd

Portions with information relating to periods other

Feature: Technology2

than the above are indicated.

Development of Next-Generation Memory to support the Cloud-Computing Society

ULVAC-RIKO, Inc
ULVAC-PHI, Inc.
Physical Electronics USA,Inc.

Vacuum equipment
businesses

ULVAC Group
Overseas ULVAC Group Companies

Env i ron ment

■ Guidelines Referenced：

Drawing on its innovative technologies, ULVAC contributes to the preservationof t h e t h e gl o b al e nv iro n m e nt . B y c o ntinuin g to d evel o p in n ovativetechnologies, the Group will further contribute to a sustainable society.

ISO26000; 2010 (Guidance on social responsibility)

Environmental Topics ...................................................23

ﬁrst edition

Environmental Performance of the ULVAC Group ............24〈Disclaimer〉
Figures shown in tables and graphs in this report may
not add up to the indicated total because of rounding.
Some figures have been revised from previous years
calculating methods have been changed.

ULVAC Group Companies in Japan

Quality Improvements to Pursue with Suppliers ............... 19(Previous Japanese edition published in September 2011; the next edition is to be
published in September 2013.)

data because the scope of reporting was expanded or

ULVAC, Inc.

........15

Improve the ULVAC Brand ............................................ 17■ Published：

ULVAC, Inc.
ULVAC KIKO, Inc.
ULVAC CRYOGENICS INCORPORATEDULVAC CRYOGENICS
KOREA INCORPORATEDULVAC (NINGBO) Co., Ltd.
ULVAC Orient (Chengdu) Co., Ltd.
ULVAC Vacuum Furnace (Shenyang) Co.

......................13

IGZO Technology That Contributes to Next-Generation Displays

September 2012

Components andIndustrial
equipment

Vacuum applications
businesses

Feature: Technology1

Year ended June 30, 2012 (July 1, 2011, to June 30, 2012)

FPD and PV
production equipment

Surface analysis
technologies

Surface analysis
deviceULVAC has turned its continuing pursuit of innovative leading-edge technologies
into an engine of growth.As we seek to expand further, we are synthesizing ourGroup technologies and carrying out business activities globally.

【Period】

Electronic device
production equipment
Vacuum technologies technologies

Te c h n o l o g y▼Advancedmaterials

portions for which the scope diﬀers are indicated.

▼

Advancedmaterial
technologies―Toward a Reborn ULVAC ...............................................9▼ULVAC, Inc.
ULVAC Materials Korea,Ltd.
ULVAC Materials (Suzhou) Co., Ltd.

Feature: Business Structural Reform Plan

【Scope】
While the report covers the ULVAC Group as a whole, any

Semiconductor and electronic
device production equipment

Editorial Policy and INDEX ................................................4
Message from Top Management .......................................5▼

Customer support business

we consider it an important communications tool.

▼

food product, and medical product industries, as well as universities and research labs, and import and export of various equipment.

Orga nization

ULVAC continues to pursue cutting-edge technologies, and such pursuit is
supported by our human resources. We must address the changing times
so that the ULVAC Group s growth vector coordinates with individuals
talent vector. We will also maintain those aspects of our management that
nurture an optimal corporate culture.

Open and Dynamic OrganizationsULVAC TECHNO, Ltd.

■ North America■ Taiwan

Facilitate Innovative Development .................................25

ULVAC KYUSHU CORPORATIONULVAC Technologies,Inc.

ULVAC TAIWAN INC.

ULVAC TOHOKU, Inc.

Physical Electronics USA,Inc.

ULTRA CLEAN PRECISION TECHNOLOGIES CORP.
ULVAC SOFTWARE CREATIVE

Roundtable Discussion among Overseas Trainees
Toward Expansion of Global Business ...........................27

ULVAC-RIKO, Inc■ Europe

ULVAC KIKO, Inc.

ULVAC G.m.b.H.

TECHNOLOGY,Co.,Ltd.

Reliance Electric Limited■ China

ULVAC Materials Taiwan,Inc.

CSR Awareness Survey using ULVACʼs own index..........................................29

̶ULVAC Precious Index and Average (UPIX)ULVAC EQUIPMENT SALES, Inc.

ULVAC (China) Holding Co., Ltd.

ULVAC AUTOMATION TAIWAN INC.

ULVAC CRYOGENICS INCORPORATEDULVAC (NINGBO) CO., LTD

ULVAC Research Center TAIWAN,Inc.

ULVAC-PHI, Inc.

ULVAC (SUZHOU) Co., Ltd.

ULCOAT TAIWAN,Inc.

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

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

■ South Korea

SHOWA SHINKU CO., LTD.

ULVAC Automation Technology (Shanghai) Corporation

ULVAC KOREA,Ltd.

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

SANKO ULVAC Co., Ltd.

ULVAC Tianma Electric (Jing Jiang) Co., Ltd.

Ulvac Korea Precision,Ltd.

RAS Co., Ltd.

ULVAC Vacuum Furnace (Shenyang) Co., Ltd.

Pure Surface Technology,Ltd.

ULVACʼs Vacuum Technologies Are Supported by Consistent

Global Corporate Citizenship Initiatives ........................33

TIGORD CO.,Ltd.

ULVAC (SHANGHAI) CO., LTD

ULVAC CRYOGENICS KOREA INCORPORATED

Nisshin Seigyo

ULVAC CRYOGENICS（NINGBO） INCORPORATEDUF TECH,Ltd.

ISO 26000 Core Subjects and ULVACʼs Engagement .........35

Initium, Inc.

ULVAC (Shanghai) Trading Co., Ltd.

ULVAC Materials Korea,Ltd.

ULVAC NONFERROUS METALS (NINGBO) CO., LTD.

■ Southeast Asia

Involvement with Stakeholders .........................................36

ULVAC ENGINEERING, Inc.
ULVAC HUMAN RELATIONS, Ltd.

ULVAC Materials (Suzhou) CO., LTD.

ULVAC SINGAPORE PTE LTDSHINKU CERAMICSULVAC Opto-electronics Thinfilm Technology

ULVAC MALAYSIA SDN.BHD.

Risk Management ..........................................................38(Shenzhen) Co., Ltd.

ULVAC（THAILAND）LTD.

Directors and Auditors ....................................................39

ULVAC Research Center Suzhou Co., Ltd.

3I N DEX■ Number of Employees：1,289 (6,981 including consolidated subsidiaries)

C o r p o r a t e P r o f i l e o f U LVAC G r o u p

Corporate Governance and Compliance .......................... 37

Luoyang Xinyou Magnesium Co., LTD

Financial Highlights ........................................................ 41

Hong Kong ULVAC Co., Ltd.

Stock Position ................................................................46
Ed i t o r i a l Po l i c y a n d I N D E X

4

Top Inter view▼

I nter v ie w w it h Top Ma na g ement

ULVAC aims to contribute to society
by creating the value that the world seeks.

President andChief Executive Officer

Hisaharu Obinata

Chairman

Hidenori Suwa

Carrying Out Business Structural Reforms toMove Beyond the Current Crisis

Measures Accompanying the Business
Structure Improvement Expenses CompletedFirst, explain the newly established management
system.

Looking back on the operating circumstances forthe fiscal year under review, what is your general
overview?

S u w a: S uw a : At t h e o rd i n a r y g e ne r a l m e et i ng o f
sha reholders a nd t he Boa rd of Directors meet ing held
on September 27, 2 012 , a new management system wasestablished by appointing me as chairman and Mr. Obinata
as the President and CEO. Prior to these meetings, theCompany had implemented an executive officer system as ofJuly 1, 2012.
One reason for this change in top positions is to clarif ymanagement responsibility after having recorded an overall
deficit in consolidated operating results for the fiscal year
ended June 3 0 , 2 012 . Anot her rea son is to ent r ust M r.
Obinata to helm the ULVAC Group for the business structural reforms that are necessary to move beyond the current
critical conditions. He is expected to act decisively given his
proven management prowess as the President of some Group
companies and his international experience.
The introduction of the executive officer system is aimed
at appointing talented young people to high positions andincreasing managerial f lexibility in the pursuit of higher
corporate va lue. We will manage t he U LVAC Group by
acting quickly and flexibly via Group governance that will
be enhanced by downsizing previous board members andsegregating the management decision-making and businessoversight functions from the execution function.

Mr. Obinata, having assumed the post of President,
what are your aspirations?

Obinata：Obinata: I have been in the ULVAC Group for
40 years, having joined the Company in 1972. I served as
President of ULVAC Technologies, Inc., in the United States
for six years starting in 1998 and was President of ULVACTECHNO, Ltd., for six years starting in 20 0 6 in chargeof customers support of Group-made products. In fact, I
was away from ULVAC, Inc., for 12 years. Looking at thepresent Company from an outsider s perspective, there is toomuch top-down decision making and employees initiative islacking in terms of creating proﬁts and product development.
I therefore intend to assign authority internally includingGroup companies to create vigorous organizations where
employees can demonstrate their originality by planning andanalyzing for themselves. In addition, I would like to focus on
education and training to introduce external trends into ourmanagement and development methods without too muchreliance on our own corporate culture.
My own mission as the new President is, after all, to returnus to the black and aggressively promote structural reforms.
Moreover, we will further improve product quality such as
the degree of perfection of equipment. At the same time, wewill improve profitability by monitoring projects regarding
investments for development and cooperation with outside
partners.

5

Int er view with Top M anagement

Suwa: The order-receiving environment for the mainstay
FPD and PV production equipment deteriorated due to theeconomic slowdown of the global economy primarily inEurope and the restriction on capital investment in Japan.
Although a harsh business climate had been expected fromthe beginning of the year, LC -related large investment
projects were suspended in the second half and demand forour solar cells declined, affected by a sharp drop in productprices due to an excessive supply of Chinese ones.
Obinata：Obinata : The slugg ishness of t he F PD - a nd
PV-related industries became noticeable especially at thebeg inning of t he ca lenda r yea r. Business condit ions insemiconductor-related industries remained ﬁrm, supported byan increase in demand for smartphones and tablet terminals.
ULVAC suf fered considerably from the aforementioned
sluggishness because FPD and PV production equipment
conventionally account for almost half of our net sales.
Suwa: Given such circumstances, although we aggressively
addressed issues around the development of new equipment,
we experienced additional costs. In addition, in view of thesevere market environment for the current term, ULVAC
implemented the Business Structura l Reform Plan toreduce our breakeven point. Consequently, we posted large
extraordinary losses. As a result, a net loss of \50 billion wasrecorded for the fiscal year under review, including a \13.5
billion reversal of deferred tax assets.

What are your thoughts on the progress of theBusiness Structural Reform Plan?

Suwa: According to the Business Structural Reform Planannounced at the end of April 2011, the first-round reforms
were executed mainly by reducing fixed costs to curtailnegative elements on a profit-and-loss basis. Specifically,f i xed co st s were reduced v ia per s on nel reduct ion bysoliciting voluntary retirees, as well as the reporting of aloss on disposal of fixed assets and a loss on devaluationof inventories. With these steps, our intended measures toaddress the business structural improvement expenses werecompleted during the ﬁscal year under review.
In the year ending June 2013 and beyond, we will carry out
the second round of structural reforms with a focus on the
proﬁt-and-loss status.
The basic strategy of the intended initiatives is the 3S+1D
campaign̶Emphasizing Difference in addition to costreduct ion ef forts via Simple Sa me a nd Sta nda rd .
We will strengthen our competitiveness and increase sales
while improving our gross margin with this campaign.
Furthermore, we intend to convert from a large-pillar-based
business structure, which depends on the mainstay FPD
and PV production equipment, to a multi-pillared businessstructure.

6Top Inter view

As for marketing, the domestic sales force has been unified
into a customer-focused sa les system t hrough U LVAC
EQUIPMENT SALE S, Inc., whereas the previous sales
system was by division. Furthermore, severa l ProductManager (PM) Groups have been newly established as a partof a sales system by product. We intend to increase orders
and improve profitability by raising customer satisfaction by
ﬁne-tuning and quickly addressing sales activities using these
two sales systems eﬀectively.

Returning to the Black by Reducing
the Breakeven Point
Explain the outlook for the current term
and your priorities.

Obinata: I will use all of my strengths to establish a new
business structure while optimizing the favorable effects of
the reduced fixed costs that resulted from the first-roundreform measures taken by the former top management
including Mr. Suwa . As mentioned, the order-receiving
environment for FPD and PV production equipment has been
deteriorating and net sales for the fiscal year ending June30, 2013 are expected to decline substantially. The greatest
management theme for me is to ensure steady profits and a
return to proﬁtability despite such a harsh forecast.
Suwa: We could reduce the breakeven point considerably
as a result of the first-round reform initiatives. Therefore, asurplus is forecast given the sales program for the current
term. We are determined to take the necessary measures tocope with the possible deterioration of our business environment.
Obinata: Meanwhile, ULVAC s present financial structure▼

I nter v ie w w it h Top Ma na g ement

has become fragile with a decline in the equity ratio due
to business structure improvement expenses being posted
in the fiscal year under review. To regain soundness, theCompany decided to issue classified stock (Class A preferredstock) via allotment to a third party. Through this capital
reinforcement, we will be able to realize a sound financial
structure (equity ratio) three years ahead of schedule. In thattime frame, we will be able to ensure the funds necessary
for our reforms in advance. The issuance scheme is designed
to minimize the dilution eﬀect of our issued shares by taking
into account the interests of existing shareholders.

What are the future priorities in theBusiness Structural Reform Plan?

Suwa: The Business Structura l Reform Plan sets two
objectives: ensuring 15 Dantotsu products* and achieving
an overseas production ratio of 50%. ULVAC products witha first- or second-ranked market share, or a gross margin of
at least 35%, are categorized as leading-edge products. We
currently have two products that meet these requirements.
We will increase the number of corresponding products to 15
or more such that the net sales of the covered products reachapproximately \40 billion.
Despite a modest sales scale, this initiative aims to address
the aforementioned conversion from a large-pillar dependent
business structure to a multi-pillared one.
The ex pa ns ion of over sea s product ion is a key t hemefor us in responding to the global strategies of corporate
customers and strengthening our cost competitiveness.
We have made strategic moves over the past 10 years interms of streamlining our infrastructure to enhance ourcompetitiveness. ULVAC s overseas production ratio iscurrently about 20%, but we intend to raise it to around 50%
within three years. We plan to achieve this objective throughhuman resource development such as training to upgradeskills for local hires without the need for a large investment.
Obinata: Promoting the previously mentioned 3S campaign
i s a key for ou r g loba l i z at ion i n pa r a l lel w it h hu m a n
resource development. In the future, I am confident that it
will be increasingly important for us not only to challenge
competitors on an equal footing overseas but also ensure costcompetitiveness by pursuing the 3S in overseas production.
*Dantotsu=Dominant only one differentiated products thatstand alone a top the conpetition

Growing Steadily to Increase Our Corporate Value
What do you especially want tocommunicate to your shareholders?

Suwa：As I mentioned at the beginning, we will not have ayear-end dividend because a large deficit was reported in the
consolidated accounting for the year under review. We deeply
regret and sincerely apologize for not paying a dividend for two
consecutive terms. To build a ﬁnancial structure that reports stable
proﬁts under the current harsh business enviroment, we will strive
to early recover a surplus in operating results by steadily carryingout our second-round business structural reforms.

7

Int er view with Top M anagement

O bin a t a：G iven t he f e edba ck t h at we re ceive f r o mcustomers and investors, I feel that these stakeholders havehigh expectations for ULVAC s technological capabilities
and development themes. To create the value that the world
seeks in response to such expectations, ULVAC will exert its
potential to the full extent to benefit industries and society,thereby raising its own corporate value.

ULVAC Businesses That Have High Social
Contribution and Public Benefits
What are your thoughts on the relationshipbetween ULVAC’s technologies andits social contribution?

Suwa: ULVAC s corporate philosophy aims to contributet o t he development of science a nd I ndust r ies w it h it s
propriecy cutting-edge technolorgies. Based on this corporate
philosophy, we have continually focused on the developmentof new technologies. The resulting technologies have formed
indispensable foundations for many industrial ﬁelds.
The source of ULVAC s creative activity resides in a spiritof inquiry similar to a hunger to focus on new technology
development. I take pride in the contributions of ULVAC
businesses t hat benef it society, leading to t he f urt her
development of industries and science and, by extension,
beneﬁting the world.

Explain your views on technology development
toward a sustainable society.

Suwa：Suwa : The socia l need for energy conservat ion
technolog y cont inues to increase in Japa n aga inst t heba ckd r op o f t he g l oba l ex t ens i on o f env i r on ment a lconservat ion act ivit ies in recent yea rs a nd t he fea redelectricity shortage due to the nuclear accident that occurredfollowing the Great East Japan Earthquake. ULVAC-supplied
technologies, such as PV production equipment to support
photovoltaic power generation and production equipment
for power semiconductors and LEDs as key energy-saving
devices, play important roles in the environment and energy
conservation ﬁelds.
As a production equipment manufacturer, ULVAC demonstrates its capacity to propose excellent environment andenergy conservation solutions for equipment users to help
them produce low-cost, high-performance devices. In addition,ULVAC focuses on the research and development that could
lead to innovative devices.

Focusing on Education while Improving thefair Treatment of Employees in Terms of
Personnel and Organization
What are the steps to realize a good workplace
and a rewarding company?

Suwa：To my mind, ULVAC s corporate culture involves
a tendency of f a ir t reat ment of employees rega rd les sof dif ferences in their competency/performance in the
personnel and organizational aspects as a negative feature.

Consequently, many employees feel cozy in the status quoand some shortcomings are seen, for example, performance
evaluations of employees bring about little difference, andemployees job satisfaction and management efficiency need
to be reviewed. In the Business Structural Reform Plan,the improvement of these issues is proposed by taking into
account a balance of different values so that every employee
becomes profit oriented. To this end, in the new merit-basedsalary system, every employee will be increasingly evaluatedon the basis of his/her personal contribution to the overall
operating results.
Obinata：We have completed a radical personnel reduction
by soliciting voluntary retirees. In the future, high work
efficiency will be required for those ULVAC employees who
remain on the payroll. To achieve a good workplace andjob satisfaction, it will be necessary for us to create better
worksites.
Suwa：A n i mp or t a nt p ol icy i n t h is cont ext is hu ma n
resource education. We must develop human resources who
can play active roles overseas in promoting the globalizationo f ou r bu s i ne s s e s such a s t he ex t ens i on o f over s ea s
production. ULVAC has started developing talented people
who can work globally by implementing foreign language
lea rning a nd foreig n t ra ining schemes using externa l
educational organizations. Despite the necessity of reducing
costs, we intend to continuously focus on human resource
education.
Obinata：ULVAC boasts excellent technological strength.
However, we must better understand the world around us,
and we intend to proactively introduce external knowledge inour development and management to help us move forward.

8

Feature：Business Structural Reform Plan▼

U LVAC R E P O RT 2 0 1 2

Toward a Reborn ULVAC

Second-round: Change in Business Structure through the
Boost Competitiveness and Way of thinking

Facing a signiﬁcant turning point in management strategies, the ULVAC Group is carrying out the Business
Structural Reform Plan toward consistent growth to move forward aggressively as a reborn ULVAC.

Changes in thebusiness environment

Reduced capital expenditures in FPD
and PV production equipment

Strategy :Refocus

Mainstay pillars(LCD and PV)

Business :Slim

Reduction of ﬁxed costs by focusing on
promising businesses

Multiple pillars

Good results from the First-RoundBusiness Structural Reforms

▼
▼

▼
▼

Change in Business ModelIn fiscal 2011 the targeted results were achieved byreviewing and streamlining processes as first-roundbusiness structural reforms.
●Number of personnel reduced by soliciting voluntary
retirees: 879 persons (versus the target of 700
persons)●Fixed asset disposals and impairment : ¥12 billion(versus the planned ¥11.2 billion)●Reduction of fixed costs: ¥15.9 billion (versus theplanned ¥15.5 billion)● Reduction of the break-even point (visual image)Plan :
Strengthen
through Transformation

Around ¥230 billion

Make radical changes in the system and mind-set
in response to a substantial change inbusiness model▼▼*What are the Dantotsu products ?
ULVAC products differentiated from those of competitors, with a firstor second-ranked market share, or a gross margin of at least 35%, arecategorized as leading-edge products.

We endeavor to reduce costs via Simple, Same andS tandard. The Company has newly established the
Design Concept Renovation Headquters, the Global
Production Management Headquaters and the Cost
R e duction Mana ge m ent H e adquater s. We intend tostrengthen our cost competitiveness by increasing theoverseas production ratio.

Major Action Plan

Major Action Plan

Endeavor to increase the overseas production ratio to
50% or more within three years.
Establish the Design Concept Renovation Headquters,
the Global Production Management Headquaters andthe Cost Reduction Management Headquaters beyond
the framework of the divisions/product groups.
A poster to encourage the 3S+1D campaign throughout
the Group▼

Develop commodities that are differentiated in terms of
performance.
Develop technologies ahead of other companies.
Respond faster to customers by reviewing the current
sales system and incorporate the results in new
product development.

▼

The ULVAC Group formulated the Business Structural Reform Plan, which includes measures to ensure profitability andgrowth strategies, to realize future growth. The plan Refocus potential growth fields where high future profits can be
expected from increased revenues; Slim through the shift of corporate assets and personnel to growth ﬁelds together
with the trimming of fixed assets; and Strengthen competitiveness and the business structure. The ULVAC Groupis determined to innovate its businesses, organizations and employees mind-set through radical reforms to increase
corporate value as a reborn ULVAC. Furthermore, as a basic management strategy, we promote the 3S+1D campaign,
which advocates Diﬀerence in addition to cost-reduction eﬀorts via Simple (Simpliﬁcation), Same and Standard.

As part of the conversion from a large-pillar dependentb u s in e s s s t r u c t ur e t o a m ul t i - p ill a r e d o n e , UL V A C
endeavors to develop Dantotsu products* to enhance its
competitive edge.

▼

Strengthen

Reinforcement of Cost
Competitiveness

▼
▼

Slim

▼

Refocus

Boost the competitivenessof products▼▼

Increasing Corporate Value through the Business Structural Reform Plan

Improve
Profitability
with 3S+1D

A poster to encourage the 3S+1D
campaign throughout the Group

Promote 3S
Simple
単純化 !
Simple
Same
共通化 !
Same
Standard
標準化 !
Standard
Difference
Difference
差別化 !
Dantotsu" ダ ン ト ツ "Around ¥160 billion
Ar

Change in product development
Develop Dantotsu products that are differentiated in termsof performance
June 2005

Change in production system

・Proﬁt oriented ・Quick and detailed customer responses
・Improve the precision of predictions such as disclosure
information
・Improve the sense of self of Group companies and individual
employees

June 2013

Reinforce the business structure byincreasing competitiveness (for products,
costs and operating efficiency) andchanging employees mind-set□ Best Standard Product of the Year Award

Slim

Withdraw from non-corebusiness ﬁelds/products▼

Refocus

Review the future core
growth ﬁelds

9

Fe a t u r e：B u s i n e s s S t r u c t u r a l Re f o r m P l a n

Promoting Global
Production

Strengthen▼

Change of mind-set (reform)

Prediction

Enhancing Cost
Reduction▲

3S and globalization

June 2012

Boost
Competitiveness

During fiscal 2011 (from July 1, 2011 to June 30, 2012), the Company started
an internal initiative to grant the Good Standard Products of the Year Award tocertain products that have met predetermined criteria and contributed to improving
operating results for the year.
The Best Standard Product of the Year Award is selected from among the Good
Standard Products of the Year Award. The award is presented at the production
technology reporting meeting of the ULVAC Group companies. The staff in chargeof the best standard equipment delivers a commemorative speech at the meeting.
The presentation is used in internal and external PR activities to disseminate thetechnological strength of the overall ULVAC Group.

Best Standard Product of the Year Award
2012 awarded:
ULVAC φScan-type X-ray photoelectron
spectroscopy analyzer PHI5000 Versa
ProbeⅡ

10

Feature：Business Structural Reform Plan▼

U LVAC R E P O RT 2 0 1 2

The Global Production Management Headquaters, the Cost Reduction Management Headquaters and the
Design Concept Renovation Headquters will cooperate beyond the organizational framework of the divisions
to achieve the targeted gross proﬁt to net sales ﬁgures for the respective equipment models and link theireﬀorts to improve the companywide proﬁt margin. Moreover, we will enhance Group governance and makequick and ﬂexible organizational preparations by segregating the management decision-making and businessoversight functions from the execution function.

Headquarters
Managers Conference

Global Production
Promotion Conference

Cost-Reduction
Promotion Conference

T h e U LVA C G r o u p a i m s t o r e i n f o r c e i t s b u s i n e s s
structure and increase corporate value by promoting achange of mind-set as the cornerstone of its structuralreforms. The primary initiative is to have every employee
focus on improving profitability in all routine activities.
T h e b a s i c s t r a t e g y, w h i c h i s c a l l e d t h e 3 S +1D
campaign, is one such reform. The ULVAC Group has
substantially changed its sales system with measures
such as the establishment of ULVAC EQUIPMENT SALES
and the introduction of PMs to provide customers withquick and detailed responses. Meanwhile, we intend tosolidif y our organizations so that they can cope withdrastic changes in the economic environment while
we are improving the precision of our predictions suchas disclosure information through enhanced precisionc o ntrol. Fur t h er m ore, we aim to cre ate vigoro u sorganizations where employees can demonstrate
their originality by allowing Group companies and our
employees to improve their sense of self.

Major Action Plan
3S+1D campaign
Change the sales system to ensure quick and detailed
customer responses.
Change the management system and prediction methods toimprove the precision of predictions.
Create an educational or cultural environment that enables
employees to improve their individual sense of self.

Raise
Corporate Quality*What is PM?
PM refers to Product Manager (PM) groups, which consist of employees as technical specialists. The PM groups are established byabolishing the conventional divisions to realize a new sales system byproduct.

▼▼

3S Promotion
Conference

Way of thinking▼▼

Business Structural Reform Promoting System▼▼

Toward a Reborn ULVAC■Production Organization
Innovation meeting■Global Procurement
Meeting

General Manager of the Global Production
Management Headquaters■Processing Center
Subcommittee■Global Procurement
Meeting□ Classified stock issued for capital reinforcement
General Manager of the Cost Reduction
Management Headquaters

For the purpose of early reinforcing our financial
structure and ensuring the funds necessary for ourreforms in advance, the issuance of classified stock was
resolved by the ordinary general meeting of shareholders
held on September 27, 2012.
Through the issuance of classified stock via allotment toa third party* for a total amount of the issued shares of\15 billion, we will be able to early reinforce our ﬁnancial
structure three years ahead and ensure the funds
necessary for our reforms in advance.

Features of the classiﬁed stock issued
Designed to minimize the dilution effect of our issued
shares by taking into account the interests of existing
shareholders.
Intended to avoid a conversion into common stock
through a cash redemption in the full amount, to theextent reasonably possible
Early reinforcement of the financial structure: Three
years ahead▼

General Manager of the 3S Promotion
Headquters■Production Sharing
Meeting■Production System
Innovation meeting▼■Production
System Change
Meeting▼■Standardization Meeting■Production System
Change Meeting

Alottee: Japan Industrial Solutions No. 1 Investment Limited Partnership

11

Hideyuki Odagi

Masasuke Matsudai

Hiroyuki Hirano

Achieve the targetedgross proﬁt to net sales ratio
for the respective equipment models
by promoting the 3S campaign.
We a i m t o s ig n i f ic a nt ly i mprove t he g ro s s
profit to net sales figures for all the targeted
equipment models at the respective divisions
b y t a k i n g a d v a nt a g e o f t h e 3 S p r o m o t i o nmethods, that is, simplification, commonization and standardization. We will formulate
policies/strategies and road maps to select thetargeted models and promote the 3S at the 3S
Promotion Conference. We will also check the
progress and review the relevant operations
at t he con ference . To ach ieve t he t a rgetedgross proﬁt to net sales ratio for the respective
equipment models, we will review drawings toachieve simpliﬁcation, commonization and standardization. Furthermore, we will participate
in the design review (DR) at each division andproactively oﬀer advice and proposals to accelerate the 3S promotion.

Increase the overseas production
ratio and achieve the targetedgross proﬁt to net sales ratio
by promoting global production.
We intend to significantly improve the gross profit
to net sales figures for all the targeted equipment
models at the respective divisions to raise the overseas production ratio of ULVAC products to 50% ormore in three years by promoting global production.
We will formulate policies/strategies and road maps
to select the targeted models and promote global
product ion at t he Globa l Product ion Promot ion
Conference. We will also check the progress, resolve
various issues and review, if the need arises, ourrelevant operations at the conference.
To achieve the targeted gross profit to net sales
ratio for the respective equipment models by raising
the overseas production ratio, we will take measures such as setting up large production plants in
China, reducing fixed costs for manufacturing andother manufacturing costs, decreasing the amountof transporting equipment, and preparing drawings
that are compliant with local speciﬁcations.

Achieve the targeted gross proﬁt
to net sales ratio for the respective
targeted equipment models bypromoting cost reduction.
We intend to significantly improve the gross profit
to net sales ratio for all the targeted equipment
models at the respective divisions by effectively
taking advantage of various cost-reduction methods. We will formulate policies/strategies and roadmaps to select the targeted models and promote
cost reduction at the Cost-Reduction Promotion
Conference. We will also check the progress andreview, if need arises, the relevant operations at
the conference. All kinds of cost items regarding
procurement costs (for manufactured goods andpurchased goods), distribution costs and labor cost
could be on the agenda at the conference sessions
to help achieve the targeted gross prof it to net
sales ratio for the respective targeted equipment
models. In addition, we will conduct the following
cost-reduction activities: enhance procurement efficiency, improve our cost estimating capacity andrestructure our global purchasing system.

Fe a t u r e：B u s i n e s s S t r u c t u r a l Re f o r m P l a n● Three years ahead
As of the end of June 30,
2012

As of the end of June 30,
2013 (after issuance)

As of the end of June 30,
2015 (after redemption)

Equity ratio

14.8%

20.6%

22.1%

Debt Equity (DE) Ratio (net)

2.48%

0.87%

0.74%

Note: The above projections are estimated based on a medium-term forecast, and the ﬁgures
are not a guarantee of actual results to be achieved by the ULVAC Group.

12▼Te c h n o l o g y ULVAC Group’s Technolog y

U LVAC RE P O RT 2012

Feature : Technology

In recent years, smartphones and tablet terminals have been disseminated widely. The 3 needs of ultra highdeﬁnition low power consumption and smooth movements on the touch panel are the key factors in choosing
mobile terminals. IGZO has attracted global attention as a new material that satisﬁes all these requirements.
IGZO has garnered attention as an essential material for thin-ﬁlm transistors (TFTs) for displays, control andglobal panel suppliers are competing aggressively to develop IGZO-based displays.

U LVAC and IGZO

● IGZO Solutions of the ULVAC Group▼▼IGZO Technology That Contributes to Next-Generation Displays

ULVAC has engaged in basic research on IGZO for morethan 5 years and has supplied sputtering equipment,
sputtering target materials and processes for IGZO tomost panel suppliers in an integrated manner, gaining ahigh market share for IGZO.
In addition, ULVAC has established a low-resistance Cu
wiring process as a barrier metal material for IGZO-TFT.
This method allows us to provide inexpensive and easyto-process Cu alloy targets without conventional Mo or
Ti-based materials.

Materials

ULVAC
SOLUTIONS
Equipment

Process▼▼

IGZO s Features

IGZO is an amorphous oxide semiconductor in which indium(In), gallium (Ga), zinc (Zn) and ox ygen (O) are mixed. It
was invented in 2004 by the research group of Professor
Hideo Hosono et al. at the Tokyo Institute of Technology.
IGZO has mobility*1 more than 20 times faster than that ofconventional amorphous silicon (a-Si). This feature improves
TFT performance, resulting in further miniaturization of
TFTs. As part of a transparent electrode that passes a light
ray from the backlight is enlarged if the TFT size becomescompact, sufficiently bright pictures can be enjoyed even
if the backlight brightnes s is reduced. In addition, as
the number of pixels may be increased compared withconventional a-Si, higher-definition displays are realized.
Fur thermore, as power consumption can be reduced,
its adoption is seen as a practical technology that could
enable battery life extension for smartphones and otherdevices.
At present, many panel suppliers are advancing theirresearch and development not only for the IGZO-based
LCDs but also for IGZO s application to organic EL.
*1. Ease of transfer of electrons inside semiconductor materials. The
higher the electron transfer rate, the faster the response rate, and highcurrents can be obtained when low voltage is applied to the materials.

● Comparison between a-Si TFT and IGZO-TFT

Clients▲Sputtering equipment for IGZO: SMD Series
Glass substrates are transferred in a vacuum chamber to form TFT wiring.

● LCD structure
TFTs are integrated inside a liquid crystal display to control thedisplay function. TFTs are formed with sputtering*2 equipment
or plasma chemical vapor deposition (CVD)*3 equipment.

Backlight
TFT array
LC layer
Color ﬁlter□ World s ﬁrst 3m large target developed

ULVAC succeeded in developing large (about 3 m long) IGZO target materials for the firsttime in the world. For conventional targets, the deterioration of TFT characteristics was
unavoidable due to the possible interfusion of particles or foreign matter through joints
because those targets had a structure of 6 small targets spliced together. ULVAC developedla rge ta rgets t hat of fer radica l solut ions to t hese problems , enabling t he format ion ofhomogeneous ﬁ lm on a large-area substrate.

Thin-ﬁlm transistor(TFT)
Glass substrate

Transparent electrode(ITO: indium tin oxide)

Approximately 3m long

Polarization
plate
R

G

B

TOPICS

Color ﬁlter
Glass substrate▲Large target about 3m long

One pixel*2. A technology to form a thin ﬁlm by sputtering the surface of a material by ions.
*3. A technology to form a thin ﬁlm by means of a chemical gas reaction.

▲Conventional 8.5-generation target (composed of 6 partitions)
IGZO target set on the equipment

Amorphous silicon-based
low-proﬁle transistor
a-Si TFT

IGZO-based
low-proﬁle transistor
IGZO-TFTVO IC E
Junya Kiyota General Manager, Research Division No. 1, Institute for Super Materials

Miniaturized
TFT

Enlarged view of LCD

13

U LVAC G r o u pʼs Te c h n o l o g y

Transparent electrode

IGZO solutions provided by the ULVAC Group, including sputtering equipment, target
materials and processes for IGZO, have the possibility of becoming the leading-edge productsof the future. ULVAC target materials have been highly acclaimed by clients worldwide, andthe verification process for mass-production application has started. To meet the stringent
speciﬁcations requested by our customers, the Institute for Super Materials continually seeks
promising, leading-edge technologies including new materials that have an excellent electrontransfer rate superior to IGZO.

14

▼Te c h n o l o g y ULVAC Group’s Technolog y

U LVAC RE P O RT 2012

Feature : Technology

Development of Next-Generation Non-volatile Memory to Support the Cloud-Computing Society
Technology development is required to help us resolve various problems in the society. The same goes for
ULVAC products, which are quietly playing a role in our daily life. We, ULVAC, believe that it is important toappropriately understand the performance diﬀerentiation and customer needs. In this section, we introduce
the non-volatile memory technology for mass production which supports the cloud computing society.
▼▼

Cloud Computing Network Diagram
Cloud

Next-Generation Memory and ULVAC s Role▼▼

Development of Next-Generation Memory to Support the Cloud-Computing Society

Source: VLSI2012, Hynix

R e R A M , i n p a r t i c u l a r, h a s
at tracted at tention among thenex t- ge neratio n no nvolatilememory types. Comparedwith other nonvolatile memor yt yp e s, it b oast s su ch fe ature s
a s hig h s p e e d a n d l ow e n e rg y
consumption.
ReR AM has the potential tore p l a c e N A N D F l a s h M e m o r y,
w hic h s e e m s to have re a c h e da technological limit. ULVAC stool is capable of stably mas s producing the core devices for
ReRAM.

ULVAC has key manufacturing
technologies for the core elementsof the device.

▲ ReRAM s device structure (Cross-point type)
A high-density compact device structure becomes possible bystacking four- or five-level memory layers compared with thesimple plane device structure.

Sputtering and CVD deposition
system: ENTRON̶EX, EX-2

● Features of next-generation nonvolatile memory

Internet

Memory type

Next-generation nonvolatile memory (storage class memory)
ReRAM

PcRAM

MRAM
Ferromagnetic electrode

Upper electrodeConductive path(ﬁlament)
Upper electrode

Composition ofmemory element
HeaterLower electrode
Metal-oxide ﬁlm

U LVAC G r o u pʼs Te c h n o l o g y

IC memory

VolatilememorySRAM

DRAM
Used for themain memory▼

Used for the memory

Flash EEPROM(ﬂash memory)

Change resistance values by modifying thestate of the phase-change ﬁlm.

Change the inter-electrode resistance values by inverting the direction of magnetization for the ferromagnetic
electrodes that put a tunnel-insulating film between theelectrodes.

○The cell structure is extremely simple andeasy to fabricate in miniature.
○Time for rewriting can be considerably shortened.
○Number of rewriting times：106〜1012○Read time：5〜100ns○Time for rewriting：5〜100ns○The cell structure is simple and easy to fabricate in miniature.
○Time for rewriting can be shortened.
○Number of rewriting times：>1012○Read time:：10ns○Time for rewriting：200ns〜1μs○The number of rewriting times is unlimited, ineﬀect.
○Time for rewriting can be considerably shortened.
○Number of rewriting times：>1015○Read time：5〜50ns○Time for rewriting ：5〜50ns

Features

ROM

Mask ROM

PROM

Representative
ROM

EEPROMtunnel oxide

Lower electrodethe resistance values of the conductive
Operational mecha- Change
path by applying voltage to the metal oxidized
ﬁlm.
nism

NonvolatilememoryRAM▼

15● Memory types▼

C u r r e n t l y, N A N D f l a s h m e m o r y i s m o s t c o m m o n l y u s e d n o n - v o l a t i l e m e m o r y, w h i c h i s u s e d i n m o b i l ephones, digital cameras, digital audio players, USB flash
drive, electrical appliances, and automobile parts andcomponents.
G ive n t h e a nticip ate d ex p a n sio n of t h e info r m atio n
traﬃc, operation speed and lower power consumption of
conventional storage memory including hard disk drives
and NAND flash memory are insufficient. Therefore,
the development of new next-generation non-volatilememory, which has large capacity, runs at high-speed
and consumes lower power, is actively ongoing
Technology of next-generation nonvolatile memory is
d i v i d e d i nto t w o m aj o r t y p e s . T h e o n e i s 3 D N A N D
fla s h , w hic h is b a s e d o n t h e o p e rating p rin ciple ofconventional NAND flash. Its 3-dimensional structure
realizes low cost and large capacity memory.
The other technolog y is Emerging non-volatilem e m o r y , w hic h i s b a s e d o n a c o m p l ete l y dif fe re nt
operating principle from the one of NAND flash memory.
Since this new memory realizes large capacity, highspeed, and low power consumption, it is anticipated thatit can only be replaced for NAND flash but be applied
to t h e s to ra ge - c la s s m e m o r y w hi c h c a n p rov i d e a nintermediate step between high-performance DRAM andcost-eﬀective NAND ﬂash.

Phase-change
ﬁlm

PROM
（OTROM）●What is memory?
LSI used to store data and information for computers, etc.
●What is nonvolatile memory?
Semiconductor memory for which written data do not disappear even in the
OFF state of power supply.

We are highly commit ted to contributing to the cloud
society by developing the mass production technology
a n d p roviding t h e m a nu fa ct uring e q uip m e nt fo r t h epractic al ap plic atio n of th e s e n ex t ge n eratio n n o n volatile memory.

These types of next-generation nonvolatile memory address the needs of the cloud-computing
society, for which energy conservation, large capacity and high-speed access are required.

VO IC E
Koukou Suu General Manager of the Institute of Semiconductor & Electronics Technologies
Given the expansion of cloud computing services, the silicon semiconductor technology thatprops up such services is a promising technology. In particular, ULVAC aims to develop
and commercialize leading-edge products that would address large-capacity, high-speed
telecommunications and energy conservation in information processing operations, which
are indispensable for the cloud-computing society. In addition, the ULVAC Group endeavors
to meet customer needs with its group-wide efforts by taking advantage of next-generation
technologies not only in Japan but also overseas.

16▼Te c h n o l o g y ULVAC Group’s Technolog y

U LVAC RE P O RT 2012

● Quality Assurance System Concept in Relation to Development and Design Flow

Improve the ULVAC Brand

Development/design
process

Our goal is safe, conﬁdence-inspiring products

Mass production machine No.1
Control process

Change risk
analysis

Feedback

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

▼
▼

▼
▼

Even deployment(take countermeasureson related equipment)

Determine theimpact on related
equipment and takecountermeasures

Customerclaim report

are then examined and approved by the Board of Standing
Directors and Auditors. Only the products that satisfy all ofthese criteria are permitted to be manufactured, produced
and sold. Such products are maintained and managed using
the product, production and sales matrix for ULVAC Group
products. Such a strict system allows us to distribute ULVAC
Quality around the world, thereby supporting our globalization.

▼▼
0

Claim Management
System(claim countermeasureprogress control)

2002

180
160

Plan
countermeasures
to the cause

Takecountermeasuresand check the results

Claim andeven
deployment

100

140
120

Countermeasures(results check)

Feedback

Corrections

100
80

Use when producing
subsequent machinesof the same design ordeveloping new
equipment(prevent recurrence)

60
40
20
0

quality inspectors in accordance with the quality control
and inspection systems independently established at therespective operating bases. These Group companies
c o n d u c t int e r n al a u di t s in d e p e n d e nt l y w i t h r e g a r d
to qualit y-related agreements for the outsourcing ofproduction and have established a collaborative systemthrough which the Company and related companies canaddress mutual issues.

―Reform of Our Intellectual Property Rights Strategy and the Results of Our
Global Intellectual Property Rights Strategy―

50

Proposecountermeasures(plan, staff, time line)

Actionitem for the
manufacturing
processU LVAC G r o u p's Te c h n o l o g y

250
200

A claim is
received!

Survey and identify
the cause

Quality issue
occurring at
a customer
factory

17

Feedback on
products

Improvement measures
Revision of drawings,
etc.

150

Cause of trouble

Design input

Risk analysis and feedback are two fundamental concepts of ULVAC s quality management system. Following
the ﬂow that begins at the development and design stage,
we identify risks, identify countermeasures to them ona 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 Claim Management
System and feed back that information at each stage. We
also run a stringent quality check on such issues during
the quality inspection prior to shipping. In this manner,
we aim to be timely providers of products that reﬂect themost up-to-date technology so that we can promptly support our customers production activities.

As for quality inspection and quality system operations,ULVAC allows the quality assurance department to operate
independently at several ULVAC operating bases.
Quality inspections at ULVAC, Inc., ULVAC TOHOKU, Inc.,and ULVAC K YUSHU CORPOR ATION (all of which are
in Japan), ULVAC KOREA, Ltd., ULVAC TAIWAN INC. andULVAC (China) Holding Co., Ltd., were conducted pursuant
to the globally uniﬁed ULVAC standards by ULVAC-certiﬁed

350[ Information on progress ]● Feedback Stages (acting on feedback)

Claim (issue)

Risk analysisof change
point

Quality control system forcustomer satisfaction and conﬁdence

Engineers

Assembly process

Procurement process

Quality Assurance Department Redeﬁned to Operate Independently at Several Global Bases

Quality issues within a process

300
Management

Clarificationof customer
requirements

A quality inspection[ Information input ]Claim Management System * in five languages[ Notification ]Analyze risk factors at the development stage and before the star t ofproduction, consider countermeasures and take action to prevent theoccurrence of issues.

Based on a checklist, the products of the ULVAC Group areassessed with respect to their model registrations; clariﬁcationof commercial distribution; compliance with the standardsof 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● Claim Management System
Claims from customers

Development
and design
inspection

All information on quality issues related to ULVAC andits production facilities is managed comprehensively by
the Claim Management System, enabling the information to be shared by the Group. The system identifies
persons in charge within the process at the Chigasaki
Head Office/Plant or our manufacturing assignees andalso notes the date. Any customer complaints after
product delivery are also processed by the system. If
a serious safety issue arises, the system automaticallysends out the information to
all management personnel
according to the level of riskof each claim. If the situation
is particularly serious, theinformation is labeled a Critical Claim and reported at
the monthly business meeting(a regular monthly meeting inwhich the President and division managers participate),
where responses are discussed and determined via a
top-down approach.

Drawing releaseprocess

Globalization of the ULVAC Brand

Making Rapid Improvements Based on Quality Information

Our claim management system

Additional risk
analysis

ActionPolicies

Developmentplan/
risk analysis

We are committed to improving
the Quality of our work to provide
products and services that satisfy
our customers.

Risk
analysis① 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 thenext process.
④ We commit to the production budget.

Machine No. 2, No. 3,
Subsequent machines

Design change
process

Sales/order-taking
process

Design output
check

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.

Quality
PolicyStandardization
process

Standardization
process

2002■Applications in ﬁscal 2011
During ﬁscal 2011, ULVAC revamped its intellectual property
rights strategy to focus on acquiring powerful intellectual
property rights that will help us enter new businesses and/or expand existing businesses and high-quality intellectual
licensed
to other2003 property
2004 2005 rights
2006 that2007 can2008 be2009
2010 20112012 companies.
P r e v i o u s l y, o u r s t r a t e g y f o c u s e d o n i n c r e a s i n g t h enumber of intellectual property rights for the main target
of protection of proprietar y technologies. However, inview of the rapid globalization of markets and the current
conditions of ULVAC, we considered it necessary to takean anticipative strategy, according to which we can acquire
powerful intellectual property rights that will help us enternew businesses and/or expand existing businesses while
exclu ding other c o m p anie s or high - qualit y intelle ctual
property rights that can be licensed to other companies.
The number of domestic patent applications decreased
to 80% from the previous year to 277, and the number offoreign patent applications decreased to 5 4% from theprevious year to 90. These results reflected the reform of
our intellectual property rights strategy and the research
results are protected more eﬀectively than before. In eﬀect,
licensing was offered for some ULVAC patent applications
from other companies.
■Results of our global intellectual
property rights strategy
the2005
numbermarkets
has increased
ULVAC
2003 As
2004
2006 of2007
2008 20092010 2011 recently,
2012
has strengthened its intellectual property rights related
activities in East Asian countries (in China and South Korea

ULVAC’s Global Intellectual Property
Rights Strategy

particularly) over the past few years. In South Korea, alongwith the establishment of an institute, we placed a priority
on streamlining management rules for intellectual property
rights and the application and rights-acquiring activities.
In China, as in South Korea, we were active in promoting
the application and rights-acquiring activities to copewith the market expansion. In addition, to prevent issues
related to counterfeit products, we filed design applications
aggressively. As a result, our global intellectual property
rights strategy proved fruitful, thereby increasing thenumber of intellectual property rights (patent and design
rights) established in South Korea and China in the fiscal
2011.

●Number of intellectual property rights registeredin South Korea and China (Patents and designs)■Number of registrations in South Korea■Number of registrations in China

120
98

100
80
60

73

62

57

48

45

June 2010

June 201140
20
0June 201218

▼Te c h n o l o g y ULVAC Group’s Technolog y

U LVAC RE P O RT 2012

Quality Improvements to Pursue with Suppliers
Promoting the 3S, Global Production and Cost- Reduction
In fiscal 2012, ULVAC will create co-existence and co-prosperity relationships with suppliers by taking
various measures to promote our three major activities (3S, Global Production promotion and Cost-Reduction
promotion ) and address the improvement of ULVAC s overall proﬁtability.
3S (acronym of Simple,Same,Standard)

SimpleThrough the 3S (acronym of Simple,Same,Standard)
activities, we intend to review functions and types
for all parts used by ULVAC, restrict the use of
special specifications (Simple), select standard
parts/components of our suppliers(Standard) andrecommend adopting common parts of which use
is not limited only to certain divisions/equipment
models (Same). With these procedures, we plan toconsolidate our various parts/components, andimplement 3S policy for parts.Thus, our procurement
will be integrated by increasing the order quantities
of recommended parts.
The procurement department will actively engage inthe production activity of the business divisions andproactively commit to anticipating 3S activity in the
pre-process stage, as well as to post-process activity inthe course of manufacturing ( monozukuri ).

Given the concentration of investments in China
from domestic and overseas customers, it has
become increasingly important to enhance our local
purchasing capability . Accordingly, in addition to theconventional cost-reduction activities conducted by
the respective Group companies, we aim for strong
and flexible purchasing by gathering suppliers
information and know-how on quality improvementof the 16 Group companies in China. To this end, theChina Procurement Center, which was established in

In addition to the 3S and global production, we will
review the purchasing method of parts to assure
systematic planned production activity for our suppliers.

2011 within ULVAC (SUZHOU) Co., Ltd., an equipment
production company, was transferred in July 2012 to
ULVAC (China) Holding Co., Ltd., which controls all theGroup companies in China.
Furthermore, we intend to promote optimum purchases
globally including the ASEAN countries, Europe andthe United States while taking into account various
fluctuation risks through collaboration with Group
companies throughout the world, in addition to thecooperation of our Chinese Group companies .

Also ,we will conduct cost reduction activities throughreview of the our business content and radical
improvement by rejection of useless operation.

U LVAC Quality Governed by Certiﬁed Suppliers Satisfying
Our Supply Certiﬁcation System▼▼

Review of excessive quality
Review of recommended goods
Consolidation of recommended types
Integrated purchasing

Enhancement of our Supplier certification system

Standard● Overseas Plant/Service Map

China
Ninpo

BostonIncreasing the procurement capacity of the China Procurement Center regarding“ made in China” partsand expanding global purchasing with an eye on post-China moves

Cost - reduction

Same

United States

Global production

Shenyang

ChengduSuzhouShanghai

Shanghai

ShenzhenLuoyangGermanySouth Korea
Pyeongtaek(2 plants)

U LVA C s s u p p l i e r c e r t i f i c a t i o n s y s t e m b e c a m eoperational domestically in fiscal 2010. The systemaims to ensure all procured products are of the same
quality for all deliverables from suppliers worldwide.
I n f i s c a l 2 011, t h e n o n - c o n f o r m a n c e r a t e o f a l ldeliverables successfully declined below that of thedomestic quality standard of the supplier certification
system. This favorable result suggests that the groupwide quality improvement activities at all the relatedorg aniz atio ns , w hic h are pro du ctio n m ana ge m e nt,
qualit y assurance, acceptance inspection andprocurement departments, led to good understandingby and the sincere cooperation of our suppliers.
Meanwhile, at overseas operating bases of the ULVACGroup, including ULVAC KOREA, Ltd., ULVAC TAIWANI N C. a n d U LVAC (S UZ H O U ) C o., Ltd ., s im ila r q u alit y
improvement activitie s, as well as the evaluation ofs u p plie r s by t h e s e G ro u p c o m p anie s , have alre ad yb e g u n . Fu r t h e r m o re, a s p a r t of t h e im p rove m e nt of
the operations requested in the intended structuralreforms, we will promote further simplification of theacceptance inspection procedure. Under the suppliercertification system , the quality of parts supplied by
the c er tifie d suppliers will b e improve d, making theprocedure simpler than before. We intend to reduce thenon-conformance rate through improvement activities
on an ongoing basis.

● Failure rate (%)
0.7

0.64

Failure rate

0.6
0.5

0.42

0.4
0.25

0.3
0.2
0.1
0.0

June 2010

June 2011

June 2012

TaiwanIndia
ThailandTainan

Malaysia
Singapore▲

Main plants…12

Quality inspection at a supplier in China▲

CS Centers: 29 operating bases in nine countries (9 in the United States, 1 in Germany, 5 in China, 5 in South Korea, 4in Taiwan, 1 in Singapore, 1 in Thailand and 2 in Malaysia and 1 in India)
Cleaning Centers: Four plants in four countries (Suzhou (China), South Korea, Taiwan and Malaysia)▲

19

U LVAC G r o u p's Te c h n o l o g y20E n v i r o n m e n t ULVAC Group’s environmental initiatives▼

Energy Saving, Resource Saving and Environmental
Conservation of Our Finished Products
ULVAC provides cutting-edge technologies for realizingt h e u s e of nat ural e n e rg y, e n e rg y s avin g , re s o urc es av i n g a n d t h e re d u c t i o n of e nv iro n m e nt a l i m p a c t .
Among our proprietary innovative cutting-edge productswith high market shares are production equipment forsolar batteries, LEDs, LCDs, thin-film lithium batteries,
condensers for hybrid cars and high-density magnets.
Though there may be few opportunities for consumers
to see our equipment firsthand, our products play
important roles in our daily life environments. In addition,
we developed new energy generation technology using
a more than 70℃ temperature difference and more than
50L/min. flow volume, our efforts and results of whichwere aired on TV. Our technology for plastic automotive
glass for lightweight and higher strength was partiallyapplied to practical use. Furthermore, our quick charging
sys te m s for ele ctric ve hicle s , w hic h are innovative
solutions combining solar and storage batteries, havebeen fully installed throughout Japan.

Environment

We would like to introduce the ULVAC Group’s global environment contribution measures such as the environment-friendly
new Head Office building of ULVAC TECHNO, Ltd., and the Feed-in Tariff (FIT)—a fixed-rate renewable energy purchaseagreement, which was implemented in July 2012.
* Tanbo (rice field) Project in its third year near Namegaya Chigasaki, Kanagawa, JapanULVAC Has a New Structure to Achieve Environment-Friendly and Safe Operation.
Given the growing environmental awareness of the public
t r i g g e re d by t h e a c c i d e nt s a t n u c l e a r p o w e r p l a nt s , t h ebalance between energy issues and economic stability is ofincreasing concern.
The ULVAC Group, which operates with vacuum technologies
as its core strength, continues to offer environment-friendly
products with a focus on energy saving and environmental
i m p a c t . E a c h c o m p a n y o f t h e U LVA C G r o u p h a s b e e ndeveloping business activities to achieve energ y saving ,resource saving and environmental conservation in ULVAC
p ro d u ct s , finis h e d p ro d u ct s m a d e by o ur c u s to m e r s a n dthroughout ULVAC s manufacturing process.

Enhanced Environmental Managementof the ULVAC GroupTo address its global production system, the ULVAC Groupenhanced its environmental management system, establishing
the Global Environmental Management Committee in 2010.
This stronger system now covers not only domestic but also
overseas Group companies.
The production and recycling processes for equipment andmaterials naturally involve certain risks of environmental● Environmental Management Structureof the ULVAC Group
Environmental
Conservation
Environmental Information
Committee● Environmental Philosophy

Recognizing that environmental conser vation is one of the highestpriority challenges facing humanity, the ULVAC Group has committed
itself to the conser vation of the Ear th s natural environment and ismaking contributions toward societ y s environmentally sustainablegrowth and development in all business activities.

● Environmental Measures of the ULVAC Group

Energy saving,
resource saving andenvironmental
conservation of
ULVACʼs products

Energy saving, resourcesaving andenvironmental
conservation offinished products

Energy saving,
resource saving andenvironmental conservation
throughout ULVACʼsmanufacturing processpollution. To reduce such risks, in the new installation,
maintenance, change or closure of environmental facilities, any
involved risks are double-checked from the perspectives ofboth environment and safety.
In addition, we share information on environmental risks
through cross-sectional activities led by the Global
Environmental Management Committee. We have also beenmonitoring safety at fixed
Global Environmental Management Committee
points within our plants inorder to prevent serious
environmental accidents.

Environmental
Management
Global Environmental
Management
Committee

Energy Management
Committee

President of ULVAC
Environmental
Management Representativeof ULVAC

21

President of each Group
company

U LVAC G r o u pʼs e n v i r o n m e n t a l i n i t i a t i v e ssenvironmental initiatives, visit the URL below.

Environmental management
personnel of eachGroup company

http://www.ulvac.co.jp/csr/▼▼

Environmental
Inspectors● For more details on the ULVAC Group

Energy Saving, Resource Saving andEnvironmental Conservation of ULVAC Products
Aiming to reduce the environmental impact of various
p r o d u c t s o f t h e U LVA C G r o u p , w e a r e c o n t i n u i n g
improvements together with the customers who use
our equipment to enhance efficiency by saving energy,
re d u c i n g w e i g h t a n d i m p rov i n g p ro d u c t i v i t y. S u c hefforts, however, would fail if the products developedby our proprietary technologies adversely affected theenvironment. The ULVAC Group manages the chemical
substances used in the components of the equipmentthat it manufacture s . T he G roup als o is pro m oting a
campaign to discontinue the use of RoHS-designatedsubstances.
Energy Saving, Resource Saving andEnvironmental Conservation throughout the
ULVAC production process
The ULVAC Group has implemented some new measuressince the previous ﬁscal year.
❶To prevent environmental, occupational and productaccidents, we decided to integrate environmental ands a f e t y m a n a g e m e nt . P rev i o u s l y, e a c h d e p a r t m e nt
managed environment and safety on its own. By paying
attention to details, we could reduce serious accidents.
Looking ahead, however, to address increasingly diverseand complicated operations, we need more professionaland broad perspectives and must enhance eﬀectivenessto pursue zero accidents through comprehensive
management of environment and safety.
❷ I n t h e f i s c a l ye a r u n d e r rev i e w, w e b e g a n a nenvironmental audit (inspection) at each Group company.
Under this new system, the top management of eachGroup company or plant provides direct guidance toimprove environmental management. Previously, the
ULVAC Environmental Management Section conducted
e nv i ro n m e nt a l m o n i to r i n g a t e a c h G ro u p c o m p a ny
and department, aggressively improved facilities ands i g ni f i c a nt l y re d u c e d t h e n u m b e r of a c c i d e nt s a n dne ar ac cident s . To improve e ach G roup c o mpany sawareness of environmental improvement and maintainand enhance environment-friendly manufacturing andother operations, we have now shifted to each Groupc o mpany s indep endent initiative in environm ental
management.
As part of such reform, we launched the Global Environmental Management Committee. At its meetings, attended by the president of each company of the ULVACGroup worldwide, each company s environmental management status is reported and issues are discussed asnecessary.
Although each Group company conducts voluntary andindependent environmental management, the parent
company ULVAC, Inc., is continuing eﬀorts to provide advice and guidance as necessary to prevent environmental accidents. The ULVAC Group plans to conduct more
visible energy management. Speciﬁcally, we will installelectricity-usage monitors to accurately monitor electricity usage volume and reduce energy use. At our ULVAC
Head Oﬃce and Plant in Chigasaki, we expanded a solar
energy generation system to use natural and renewableenergy.
The ULVAC Group will continue
efforts as a company to contribute to the environment with its
innovative technologies.

Director and Senior Executive Oﬃcer
in charge of Environmental Management

Yoshio Sunaga

Toward Reduction of Waste Volume by the Segregation of Waste▼▼▼

U LVA C R E P O R T 2 012

The ULVAC Group had promoted waste management
measures mainly to recycle and reduce waste volume
and waste treatment costs. In fiscal 2011, the Group
added activities to convert waste to resources withsome value. Waste is roughly classified into plastic,
metal, cardboard boxes and paper. Although most metals and cardboard boxes had been converted to useful
resources, that was not the case with plastic and paper.
To address this issue, in fiscal 2011, we decided to dosomething about the 86 tons of paper waste (excluding
confidential documents) disposed at our ULVAC Head
Office and Plant in Chigasaki. We reviewed our waste
segregation method and decided to turn wastepaper into
a useful resource and segregate paper waste that was
mixed in with plastics.
In fiscal 2012, we will aggressively promote waste segregation and monitor how much waste plastic is being reduced and how much paper is being turned into a useful
resource. Although the ULVAC Group has been promot-

ing recycling from the perspective of environmental conservation, in the future we will promote not only simple
recycling but also converting waste into resources withsome value for reuse, thereby reducing waste volume.

Paper waste
Waste segregation

Magazines

OA paper

Wastepaper22▼E n v i r o n m e n t Environmental Measures of the ULVAC GroupU LVAC RE P O RT 2012

TOPICS

Environmental Performance of the ULVAC Group□ Inaugurated a New Environment ̶Friendly Head Ofﬁce Building of ULVAC TECHNO, Ltd.̶

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

Inaugurated a new Head Oﬃce buildingof ULVAC TECHNO, Ltd., in
Chigasaki, Kanagawa, JapanTo enhance operational efficiency, in January 2012, aGroup company, ULVAC TECHNO, Ltd., relocated its
Head Office to a new building in Hagisono, Chigasaki,
Kanagawa, Japan. The new building is equipped withenergy- and resource-saving measures. Thirty-sevenstorage heat pumps are used for air conditioning to
reduce electricity use during the daytime peak hours.
thermopane windows are used for heat shielding
and insulation to reduce the air-conditioning load. In
addition, the building has 988.9 m2 of rooftop greenery
for insulation and scenery. We also introduced heatpump-type energy-saving vending machines. We are
aggressively adopting eco-appliances (Carbon Footprint
System) for the break room.
We will inspect and review the results of these energyreduction measures and effectively use the results tofurther reduce energy use.

Transition of the ULVAC Groupin ﬁscal 2011

● Transition of CO2 emissions

At the R&D and manufacturing bases of the ULVACGroup, we are promoting energy-saving activities.
manufacturing at overseas bases, which reduced■ULVAC, Inc. (non-consolidated) ■Domestic companies of the Group■Overseas companies of the Group

電力使用
（千kWh

80,00016000
69,000In the previous fiscal year, the Group reinforced

72,46971,01960,00012000

40,0008000

20,0004000

CO2 emissions and water use in Japan and clearly
increased CO2 emissions and water use overseas.

New environment-friendly Head Oﬃce building of ULVAC TECHNO, Ltd.

Given the domestic situation, where the management of energy use and the reduction of CO2 emissions are increasingly stringent every year, we are
gradually shif ting to more ef fective energ y use,
whereas overseas energy-use management is not

Chigasaki CS Center, Head Oﬃce of
ULVAC TECHNO, Ltd.

0

10.06

11.06

12.06

yet efficient enough. At the ULVAC Group as well,▲

the importance of its overseas bases is increasing.
CO2emissions（t - CO 2）■ULVAC, Inc. (non-consolidated) ■Domestic companies of the Group■Overseas companies of the Group80,00069,00072,469

電力使用量■海外生産拠点
We will■アルバック単体
strive for ■国内生産拠点
effective energy
use at all Group（千kWh）
160000companies including overseas bases.

71,01900,00000,0000

988.9 m2 of rooftop greenery
60,000120000● Transition of water use volume
Utility rate
(Thousand m3)■ULVAC, Inc. (non-consolidated) ■Domestic companies of the Group■Overseas companies of the Group

1600

1,525

00,000Material Balance (ULVAC Group)▼▼

Address: 2609-5 Hagisono, Chigasaki, Kanagawa
Construction period: Started in January 2011 andcompleted in November 2011
Building: 4F steel frame(Footprint: 4,022 m2, Total ﬂoor area: 12,662 m2)

CO2emissions（t - CO 2）

1,359

1,287
1200

INPUT
40,00080000□ Feed-in Tariff (FIT) ̶a ﬁxed-rate renewable energy purchase agreement̶ of ULVAC, Inc.
U LVAC, Inc., which has engaged in the developmentof solar battery manufacturing equipment since the1970s , has been aggressively developing solar battery
manufacturing equipment, technologies and materials.
Collaborating with customers, we have engaged in joint
efforts to improve mass-production technologies forchemical compound solar batteries for these years.
W i t h i n t h e H e a d O f f i c e a n d P l a nt i n C h i g a s a k i ,Kanagawa, in 20 0 4, we started to install solar power
generation facilities, at which approximately 100 kWh
per day is generated and used inside the Head Oﬃce andPlant. We plan to raise the power generation volume toapproximately 300 kW.
T h i s ye a r, t he Fe e d - i n Ta r i f f ( F I T ) ̶ a f i xe d - r at e
renewable energy purchase agreement̶was concluded,
wh ich is su re t o promot e t he i nt ro duct ion a nddissemination of renewable energy in Japan. It may give
Japan an opportunity to again become a leader in solar
energy generation. The U LVAC Group is reinforcing
its power generation facilities and seeking certification
for those facilities by meeting the Renewables Portfolio
St a nd a rd ( R P S ) u nder t he Sp e ci a l Mea su re s L aw
Concerning the Use of New Energy by Electric Utilities

23

E n v i r o n m e n t a l M e a s u r e s o f t h e U LVAC G r o u p

20,000(the RPS Law ).
By volunta r ily int roducing t his business model , wewould like to contributeto disseminating solar power
0
10.06
11.06
generation facilities.
ULVAC will continue to oﬀer solar battery manufacturingt e c h n o l o g i e s t o s o c i e t y, p r o m o t e t e c h n o l o g i c a ldevelopment of next-generat ion sola r batteries anddisseminate solar power generation facilities, thereby
contributing to the global environment.

ElectricityCOuse2

157,138 thousand kWh ●Heavy oil

758 kL●Kerosene

64 kL●Diesel oil

119 kL

40000

CO
Gas usage
2

●LPG

125 t

●LNG 2009

710 t●City gas

1,862 t0

12.06

FuelCOuse volume

2

Water use2011
volumeCO2

2010

1,359 thousand m3

CO2

800

400

0

10.06

11.06

12.06

Packaging materials
1,325 tOUTPUT
CO2

CO2 emissions

71,019 t-CO2

Generated by the use of electricity, gas and fuelTotal waste emissions 11,694 t
Volume of useful resources 2,375 t
CO2Solar power generation facilities within the Head Oﬃce andPlant in Chigasaki, Kanagawa

Recycling ratio…4.4%*The source of the above data is 37 companies worldwide of the ULVAC Group.
*The above volume of packaging materials is a total of that at 23 of the 37 Group
companies.

24

2,5002,155
1,898

Organization
2,000

▼

ULVAC Group Organization

U LVAC R E P O RT 2012

1,500

1,289

1,000
665

601

500
168

142

0

▼
▼

Personnel DataPersonnel Department

2.0

40
1.88

1.89

Our recent business restructuring led to a decrease of 979 employees in Japan. As the overseas
30
1.56
manufacturing ratio increased, the number of2,500
employees at overseas Group 25companies increased by 82.
35

1.82

1.83
1.5

2,155

● Number of employees working in ULVAC Group companies
1,500

3,000
2,537 2,574

15

▼

2,041

Organization

1,912

0

1,500

1,289
1,898

497

600

Open and Dynamic Organizations Create Innovative Development
ULVAC s corporate philosophy includes a policy of maintaining a free and open culture. We believe thattechnological innovation requires a free and open organization. ULVAC s driving force is its corporate culture
in which employees can freely generate ideas regardless of position or rank and are free to speak their mind.
Open and Dynamic Organization
The major business of the ULVAC Group is the researchand development of cutting-edge vacuum technologies.
The management policies of the Group are Improvementof Customer Satisfaction, Innovative Production Technology, Innovative Product Development, a Free and Open
Culture and Enhancement of Corporate Value. Innovative
Product Development is achieved through and Innovative
Production Technology is derived from Open and Dynamic Organizations. Innovative Products and Innovative
Production Technology lead to customer satisfaction and
can Enhance Corporate Value.
ULVAC s driving force is its corporate culture in which
employees can freely generate ideas regardless of position or age and are free to speak their mind.
Personnel Policies
ULVAC appreciates an attitude of tackling challenges.
Even should a good effort end in failure, the individual is
not held to account. This concept applies not only in the
R&D department but also in all of our occupational ﬁelds.
However, in cases where the failure of the trial was obvious from the beginning or the trial was not worth the effort, the person should be held accountable. The value ofthe challenge is assessed in the planning and result.
ULVAC maintains such basic employment practices as aseniority system and lifetime employment. However, instead of a complete lifetime employment system, we put
highly capable personnel in important positions regardless of their age. We also plan to conduct strict personnel
performance evaluations to distinguish those who work
hard from those who do not and reflect such differencesin pay raises.
Salary System
ULVAC uses a simple seniority-based pay system

25

U LVAC G r o u p O r g a n i z a t i o n

Human Resource Development
ULVAC trains its employees according to an annual
plan adopted by our Training Committee. In addition to
training by tier, we recommend that all employees takecorrespondence courses, and we plan to have officers,
management and certiﬁed professional employees attend
lectures outside the Company for further training.
ULVAC wants its employees to improve their skills andgain valuable experience through friendly competition
with people working for different companies in the same
industry or people in different
occupational types. The feedback and results will be used tofurther invigorate ULVAC.

General Manager
Personnel Department

Tomoyasu Suzuki

601

ULVAC Group companies in Japan

South Korea

142● Changes in the number and percentage of0
disabled employees (ULVAC, non-consolidated)■ Number of disabled employees

1.89

1.82

1.82

35

China

37

40

Taiwan0●08.06
Genderratio 10.06
in
09.06
11.06
management positions

27

0.5

Singapore/Malaysia

130 140 142
North America

Female 6.9％
89

0.0
● Genderratio in
employees

12.06(Fiscal 2011) (ULVAC, non-consolidated)

Female 2.2％
8

1.5

1.0

35

37

40

27

10

09.06

10.06

11.06

12.06

Total number of
employees:
1,289

Total inmanagement
positions:
352

Male 93.1％
1,200

Male 97.7％
344

0.5

5
08.06

106 138 168

5

1.83

20

0

1.83

1.0

(Fiscal 2011) (ULVAC, non-consolidated)

1.56

28

12.06

603 601

25

15

11.06

1.5

28

10

● Employment ratio

40
1.88

1.89

514

2.0

35

10.06

27

142

20
15

168

30

with a simple categorization of salary tiers of officers,
management and general employees (those below the
management), regardless of academic background,
occupational type and gender. Other than the assumptionof officers positions, all employees take a test to
determine promotions.
This is based on the belief that excess competition within
the company interferes with teamwork, and that if we areto compete with anyone, it should be someone outside
the Company. We will maintain the current system forpersonnel performance evaluation, but we will adopt
absolute criteria as an assumption for clear diﬀerentiation
in a salary raise.

ULVAC, Inc.

168

1.56

663 66525

1,000

500

09.06

40

■ June 2010
■ June 2011
■ June 2012

2.0
1.88

30

1,289

665

08.06

1,344

40
35

0

601

1,848 1,898

0

2,155

The ULVAC Group sets personnel policies and offers a variety of talent development systems to enable our employees toreach their full potential. This section features the voices of employees, including people in charge of specific operations,describing how these developmental systems work.

37

500

2,500
1,800
2,000
1,200

35

5

1,000

2,218

28

10

1,289

665

2,400

1.0

20

1,898

2,000

0.0

□ Roundtable Discussion Meeting Where Employees Share
Their Opinions with the Chairman and the President
In January 2011, Chairman Suwa s idea initiated a roundtablediscussion among employees, Chairman Suwa and President
Obinata. Once a month, some young employees are chosen bylottery and dine with the Chairman and the President in casual wear at a restaurant outside the Company. The informal
style has been in place since the ﬁrst meeting.
The purpose of this roundtable meeting is to provide an opportunity for top management to communicate with young
employees, establish a corporate culture where employees
can speak their mind, and allow top management to express
their thoughts and hear employees opinions, thereby improving employee satisfaction. Participating employees ask various
questions regarding management of the Company and eventhe private matters of the Chairman and the President, whoanswer each question sincerely. Feedback from the attendees
has included I got a future tip about how to work well andlive well and I felt that top management appreciates and

TOPICS

cares about employees. I am glad I joined ULVAC. In addition to such meetings between top management and young
employees, in 2012, top management plans to start a similarroundtable discussion with section chiefs and other lower-level
management. By creating opportunities for communication between top management and young officers in the lower management tier, we would like to establish a corporate culture
where employees can express
their opinions
and we can address attendees
problems relative to middle
management.

26

0.5

0.0

▼

O r g a n i z a t i o n ULVAC Group Organization

U LVAC R E P O RT 2012

Roundtable Discussion among Overseas Trainees

Toward Expansion of Global Business
ULVAC introduced its first overseas training system, for which five employees were selected to receive
training in the United States, Germany and Singapore, beginning in August 2011. Reflecting on theirexperience, we discussed issues related to the expansion of overseas businesses.

at first, I could eventually
talk at my pace without
being frustrated, which gave
me confidence. The humanconnections that I have built
at the local site are now avaluable asset.
Wat a na b e: I le arne d a lot
f ro m t h e A m e r i c a n p e o p l esuch as their lifest yle, inwhich they effectively workand enjoy their private time,
and their good self-expression skills.

▼

Attendees at the Roundtable Discussion
FPD・PV Division,

Kazuhiro Ishikawa
ULVAC
SINGAPORE PTE LTD.

Advanced Electronics
Equipment Division,

Eriko Mase

Physical Electronics
USA, Inc.

Essentials for Business Globalization

Advanced Electronics
Equipment Division,

General Manager,
Personnel Department,

Miwa Watai

Tomoyasu Suzuki

ULVAC G.m.b.H.

Importance of Communication atOverseas Business Bases
Suzuki: Although the overseas training system has
been temporarily suspended
in fiscal 2012, it will resume
i n t h e n e x t f i s c a l y e a r. W e
wo ul d like to get fe e d b a c k
fro m n ew train e e s a n d u s ethat feedback for our future
operations. First, please explain where you received
training and the c ontent of
the training.
Miyazaki: I received training at ULVAC Technologies,
Inc., in the United States. Before my internship, I had
studied English at a language school in Boston for six
months.
Watai: After studying at a language school in Germany,
I worked for ULVAC G.m.b.H. substituting for a person inmarketing who took a maternity leave.
Ishikawa: Af ter studying at a language school in
Singapore, I worked for ULVAC SINGAPORE PTE LTD.
and conducted manufacturing equipment installation
operation at a customer s worksite. I was also trained at
the Vietnam oﬃce.
Watanabe: I received training at the same place where
Mr. Miyazaki did. Af ter learning English in Boston for

27

U LVAC G r o u p O r g a n i z a t i o nModerator

FPD・PV Division,

Ryuhei Miyazaki

ULVAC Technologies, Inc.

Intellectual Property &Licensing Department,

Makoto Watanabe

ULVAC Technologies, Inc.

six months, I came back to Japan to switch to a workvisa, then returned to the training site and received one
month of onsite training.。
Mase: I received training at Physical Electronics USA,
Inc., in Minnesota, United States. After learning English
at a local site for three months, I switched my visa to awork visa and I worked on the assembly of components,
testing and analyses at the training site for 5 months.
Suzuki: How did you feel and what did you learn throughoverseas training?
Ishikawa: I strongly felt the importance of language as amethod to convey one s own ideas and opinions to otherpeople and realized the simplicity and convenience ofEnglish to converse with people from various countries.
Wat ai: In Euro p e, I wa s of te n a s ke d to u s e t h e lo c allanguage although English was considered to be thestandard language forbusiness use.
Miyazaki: In the UnitedStates, there were so many
people from different countries such as people from theM i d d l e E a s t . T h e i r E n g li s h
had strong accents and wass o m e t i m e s h a r d t o u n d e rstand.
Mase: Although I had anxiety
about English conversation

Suzuki: What did you observe by looking at ULVAC fromoutside Japan?
Is hikawa: At o ur over s e a s lo c atio n s , re qu e s t s an dcommunications from Japan tend to be simpliﬁed and the
local staff struggle with how to address them. I believe
such communication needs to be more accurate.
Watanabe: Because design drawings sent from Japanare writ ten in Japanese, the Japanese staf f werehandling them at my training site. I think such drawings
should be standardized in English.
Mase: Some e-mails regarding financial matters sentfrom Japan to my training site were written in Japanese,and I was asked about the content by local staff. At thetraining site, I was in charge of manufacturing equipment
at the Advanced Electronics Equipment Division.
Concerning the drawings, the framework of the drawings
at ULVAC was dif ferent from that at the training site,which caused diﬃculty reconciling such drawings.
Suzuki: What will be necessary for ULVAC to promotebusiness globalization in the future?
Miyazaki: At my training site, the system used for material management and otherp u r p o s e s w a s a nt i q u a te d .
I b e li eve w e s h o u l d h ave acommon Group-wide systemfor bet ter communication
bet ween ULVAC and groupcompanies.
Wat ai: W it h reg ard to e s ti mates for global procure ment, it takes time for a local
corporation to handle suchmatters due to a shortage of

personnel. I think it may be necessary for the staﬀ in Japan to directly contact overseas suppliers. Also, in our
production process, we will need to address CE marking
for smooth distribution in European markets.
Is hikawa: At my training
site, the engineers skill sets
were not strong enough. To
eliminate the differences ins kill level am o ng lo c al c orporations, I think a global
personnel measure would be
effective such as personnel
transfers across the Group.

Reﬂect the New Awarenessfrom Training in Future Business Activities.
Suzuki: Lastly, please talk about the change of conceptthat occurred to you through the training.
Ishikawa: Fast-growing Singapore exhibits high energy
and vibrant enthusiasm, which makes me feel restlessand hungry for hard work.
Watai: My self-initiative improved significantly not only
in sales activities but also in communication with local
corporations. When I attended an academic meeting, I
actively talked with people from other countries.
M i ya z a k i: T h ro u g h c o m m u n i c a t i o n w i t h ove r s e a s
customers, I felt the urge to increase my vocabulary oftechnical terms.
Watanabe: Although opportunities for me to directly use
English and other training experience are decreasing
in my field of patent-related operations, I would like tocontinue to improve my skills for the future.
M ase: At my training site, the e mploye e s had a highawareness of profitability, which made me think about
the marketability, profitability and cost-reduction of thedevelopment projects withwhich I am involved.
Suzuki: Thank you for yourvaluable opinions and feedback from your experience.
Toward the expansion of the
global business of the ULVAC
G ro up, we wo uld like to re flect on your opinions for theGroup s future educational
structure and other improvements.

28

▼O r g a n i z a t i o n ULVAC Group Organization

U LVAC RE P O RT 2012

ULVAC s Vacuum Technologies Are Supported byConsistent Efforts to Ensure Good Health

CSR Awareness Survey toward a
Rewarding Company▼▼

Health Promotion Ofﬁce Initiatives

To work with sufficient energy, mental and physical health is important. At ULVAC, two full-time
occupational physicians and two full-time nurses work in the Health Promotion Office at the ULVAC
headquarters/Chigasaki Plant to ensure good health for ULVAC s employees.

▼▼

CSR Awareness Survey using ULVAC s own index - ULVAC Precious Index and Average (UPIX)

We conducted the CSR Awareness Survey to ascertain employees
We intend to promote CSR activities based on the survey results.

level of awareness of CSR.

Promoting physical healthReport of the CSR Awareness
Survey Results
To s u r v e y U LVAC e m p l o y e e s C S R a w a r e n e s s , w e
conducted the CSR Awareness Sur vey, a Web-basedquestionnaire. The questionnaire was answered by 1,036
out of 2,463 employees (a participation ratio of 42.1%),of which we tallied valid answers from 961 employees (avalid answer ratio of 39.0%).
U PI X(t h e U LVAC Pre cio u s In d ex a n d Ave ra ge) wa s
calculated from the survey results using ULVAC s own
formula.
The UPIX s average value is 50. The higher the UPIX,
the higher the evaluation in CSR awareness, technology,
environment and organization.
Concerning the UPIX by occupational type of businessdivision, Sales and Production Control showed goodre s ult s w it h valu e s a b ove 5 0. H oweve r, we n e e d toraise CSR awareness in the Technology, Production andMechanical Design Divisions̶key divisions that support
the company s technological capabilities̶including thecreation of a worksite where employees can work withenthusiasm. (See Fig. 1)
No difference was found in the UPIX by gender (Male:
50.1, Female: 49.5), reflecting ULVAC s fair corporate
culture with equal opportunity regardless of gender.
Third, UPIX by age showed a tendency that the older theemployee, the higher the evaluation (Fig. 2). We need topromote CSR activities and create a better workplace bylistening to younger employees, who will support ULVAC
s future, and middle-tier employees.
W e i n t e n d t o c o n t i n u e t h i s s u r v e y, l i s t e n t o m a n y
employees opinions and promote ULVAC CSR activities
by having a rewarding workplace where employees canwork with enthusiasm.

29

U LVAC G r o u p O r g a n i z a t i o n● Fig. 1 Business Division UPIX by occupational type
51.0
51.0
50.5
50.5
50.0
50.0
49.5
49.5
49.0
49.0
48.5
48.5
48.0
48.0
47.5
47.5
47.0
47.0

50.4
50.4

50.0
50.0
49.3
49.3

49.2
49.2

49.1
49.1
48.4
48.4

Sales
Sales

Production
control
Production
controlManagement Technology
Management Technology

Preventing health impairment
due to overwork

Mechanical Manufacturing
DesignMechanical
Manufacturing
Design● Fig. 2 UPIX by age
40.0
40.0
up to 19
up to 19
20 - 24
20 - 24
25 - 29
25 - 29
30 - 34
30 - 34
35 - 39
35 - 39
40 - 44
40 - 4445 - 49
45 - 49
50 - 54
50 - 54
55 - 59
55 - 59
60 - 64
60 - 64

42.0
42.0

44.0
44.0

46.0
46.0
45.0
45.0

48.0
48.0

50.0
50.0
49.6
49.6

52.0
52.0

54.0
54.0

47.7
47.7

48.9
48.9
48.2
48.2
49.1
49.1

51.6
51.6

According to the results of the health checkups, we provide
medical guidance for employees who need detailed examinations and/or medical treatment and healthcare guidance
to prevent future lifestyle-related diseases and maintain andpromote physical health.
Jointly with the ULVAC Health Insurance Association, in
fiscal 2011 we newly conducted sleep apnea syndrome(SAS) screening tests, in which 78 employees participated.
Through the explanatory meetings on the SAS test results,
122 employees received hygiene education on sleep-related
issues, including sleep apnea syndrome. Those who were
determined to require treatment as a result of the SAS test

53.1
53.1
52.7
52.7
52.7
52.7

Since August 2006, to prevent health impairment due
to overwork, employees who have worked overtime
in excess of the internal upper limit are given healthcheckups via a questionnaire and private interviews
with an occupational physician. The number of suchinterviews started to increase in fiscal 2008 when fulltime occupational doctors were introduced. In addition,
an extensive range of activities have continued,
including overtime work patrols jointly by the Personnel
Department and the labor union and periodic reportingof the status of overtime work to the Safety and HealthCommittee and at other internal meetings. As a result, thenumber of employees working long hours has continued
to decline since peaking in fiscal 2009. We will continue
to carry out measures for the prevention of healthimpairment due to overwork.

Promoting mental health
We offer an internal desk at the Health Promotion Office for
employees to seek consultation regarding issues of mental
and physical health. We receive 100 to 300 requests forsuch services every year, and these are responded to byoccupational physicians and nurses at the Office, who offer
advice on how to spend time at home and the workplace andrefer those needing medical treatment or examinations to a
medical institution. In addition, the occupational health staff
holds regular interviews with employees who are on a longleave due to mental health or other problems to ensure they
can feel reassured during their recuperation and return towork in good health. As a result, the ratio of those returning
to work after a long leave in ﬁscal 2011 was high at 91%.
To prevent and early detect mental illness, the Health
Promotion Office has provided mental health seminars andrelated information through in-house newsletters. To makethese activities more effective, the Office is preparing the
Mental Health Action Plan in line with the policies of the
Ministry of Health, Labour and Welfare in collaboration withrelated departments.

were given a personal interview and referred to a specialized physician at a medical institution.
In fiscal 2012, we planto perform viral hepatitis screening tests.
With a view to continuing the global expansion of ULVAC, we areconsidering enhancing
t he he alt h m ana ge ment for employees
Mental health seminar by angoing overseas.
occupational physician● SAS screening tests
No problem:
24

70
60
50
40

Explanatory meetingon the test results
Sleep hygiene education

Follow-up
required: 19
78 entries
Detailed
examination
required: 24

30

Personal interview
Medical guidance
Sleep hygiene education

20
Medical treatment
required: 111002008 年度

2009 年度

2010 年度

2011 年度● Number of interviews
with longtime
workers
保健指導
医療指導(as of June 7, 2012)

180
160
140
120
100
80
60
40
20
0
07.06

08.06

09.06

10.06

11.06

12.06

● System of consultation for employees

250 with health problems
200

Employee

Use

150
100
50
0

External contacts forhealth consultation*
Health and medical guidanceConsult

Consideration

Supervisor

Consult
Consult
AdviceHealth Promotion Office(occupational physicians and nurses)

2008 年度
2009 年度
2010 年度
2011 年度
Consult
Consult
Advice/からだの相談こころの相談医療機関紹介Directions
Provide opinion on special
considerations for working

Personnel
Department*Under the contract with the ULVAC Health Insurance
Association for external services

30

Number of accidents
Number of accidents

40

O r g a n i z a t i o n ULVAC Group Organization

U LVAC RE P O RT 2012

43.4

22.2

40
20

OSHMS organization

Committee chair: President and CEO
Committee chair representative: General Safety and Health Manager
Committee members: Division managers

ULVAC has begun activities according to the policies ofthe Ministry of Health, Labour and Welfare to promote
the mental health of workers. This will reinforce theconventional eﬀorts already in place to promote mental
health in the workplace.

President and CEO (OSHMS Committee Chair)

Corporate Safety & Health
Department (organizer)

Opinions of workers
reflected

Organization under the Industrial
Safety and Health Act

Safety and Health Committee
Safety and Health Committee members: Union representatives,company representatives, industrial doctors

Safety Management Committee
Safety Officers
Health Management
Committee
Health Officers

Floor Safety and Health Managers

Chemical SubstanceManagement Committee

Safety Management Promotion Conference(division OSHMS)
Members: Safety Management Promotion Managers(department general managers),
division managers, safety officers▼▼

Natsuki Takahashi,

Presidentʼs instructions,system reviews
Safety Management Committee(company-wide OSHMS)

Promoting mental health at the workplace

Corporate Environment, Safety & Health Department

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

Chemical Substance Managers

Safety Management
Promotion Managers

Specialty Gas Safety
Committee

Safety Promotion Committee members

Specialty Gas Safety Committee members

the presidents of the respective companies with respect
for their independence.
In addition, we have spent a year making gradual preparations to introduce the OSHMS system throughout theGroup. Starting in fiscal 2012, all Group companies are
now operating the OSHMS system, which is expected togreatly enhance the quality of safety and health activities
across the ULVAC Group.

1.5
0.5

0.80
1.20

All industries

Electric devices

09.06

Manufacturing industries

Machinery

Manufacturing equipment and devices

ULVAC

All industries

Electric devices

Manufacturing industries

1.57

Machinery

Manufacturing equipment and devices

10.06

11.06

12.06

1.57
0.78

08.06
0.78

0.92

0.69

0.64

09.06

10.06

11.06

0.69

12.06
0.92

0.64

Group as a whole

Japan

China

South Korea

Taiwan

North America

Southeast Asia

0.40
0.80
0.20
0.60
0
0.40
（％）

Based on the lessons learned from the Great East Japan
Earthquake, ULVAC has performed an overall review
of its ﬁre and disaster prevention plans and conductedevacuation drills according to the revised plans. A
particular focus was placed on evacuating to higher
ground in case of ﬂooding due to a tsunami, a typhoon,etc., and conﬁrming the safety of employees.

0
（％）

08.06

09.06

10.06

11.06

12.06

08.06

09.06

10.06

11.06

12.06

● Product accident counts ratio
50

43.4

40
27.3

30

22.2

20.2

20
10

10.6

0

08.06

09.06

10.06

11.06

12.06

This graph indicates product accident counts per unit of sales (ULVAC non-consolidated) relative to the counts in the ﬁscal year ended June 30, 2002, which
are indexedULVAC
as 100.
TheElectric
product
accident
countsin ﬁscal
2011
increasedfrom
All industries
devices
Manufacturing industries
Machinery
Manufacturing
equipment
and devices
the2.5previous ﬁscal year, but this was due to a change in the standard for counting
accidents and all similar accidents concerning the same product were counted.

Fire and disaster evacuation drill

2
1.57
Emergency life-saving training program

1.5
1

0

Frequency ratio

1.20

U LVAC G r o u p O r g a n i z a t i o n

ULVAC

0.60
1.00

（％）

31

12.06

1.00
● Numberof occupational accidents for the Group companies

0.5

At all sites of ULVAC, including oﬃces and production sites, employees meet each morning to chant about safety measures.

11.06

Until ﬁscal 2007, our reports provided data only for the Chigasaki Plant, butreports
0 since ﬁscal 2008 have covered all ULVAC sites and branches. In ﬁscal
09.06 rate increased
10.06 slightly11.06
12.06
08.06
2011, the occupational
accidentfromthe previous
year.
Group as a whole
Japan
China
South Korea
Taiwan
North America
Southeast Asia
（％）
1.20

Disaster prevention

We now have six AEDs installed at the Chigasaki Plant,
where we are providing an internal training program
to increase the emergency life-saving abilities andawareness of employees. All employees who havejoined ULVAC since 2012 have participated in the
training program.

10.06

08.06

21

10

Frequency ratio

To address the ULVAC Group s rapid overseas expansion in recent years, the General Safety and Health Managers have conducted high-level patrols to oversee thesafety and health promotion activities at the overseas
Group companies. As a result, safety awareness at theGroup companies has increased considerably, reducing
the number of occupational accidents. In response, wehave decided to delegate the patrolling responsibility to

2.5
1.5

0.20

Emergency life-saving initiatives

10.6

2

（％）
0.5

▼
▼

Carrying out global measures to address overseas business expansion

Frequency ratio
Frequency ratio

Due to the various measurements taken since ﬁscal 2003,
the product accident rate subsequently decreased eachyear until the rate in ﬁscal 2011 rose slightly from a year
earlier. With a focus on enhancing the risk assessment of
ULVAC products, we will continue to seek the eliminationof product accidents on a global level by reinforcing
education for all employees engaged in manufacturing to
the handling of products.

Frequency ratio
Frequency ratio● ULVAC Safety Organization

departments to ensure that safety
and health activities are fully implemented throughout ULVAC.
In fiscal 2012, we will continue to
use the risk assessment method
to further improve the workplaceenvironment. To this end, we will
enhance the quality of risk assessment education so our workplacesafety advisers can improve theirpractical skills.

0
2.5

▼
▼

ULVAC is fully committed to occupational safety and healthactivities to realize the basic policy of the OSHMS system.
The number of product accidents at our customer sites has
decreased every year, reaching less than 30% of the fiscal
2002 level. Meanwhile, the number of occupational accidents
in our plants has seesawed, while being on a declining trend
for the past few years.
In 2010, we launched the Occupational Safety and HealthManagement System (OSHMS) under the direct control of
the President and CEO. Under the system, the status ofsafety and health management at workplaces is reviewed
by the President for the entire company and by the divisionand department managers for the respective divisions andProduct safety

09.06

08.06

20.2

●10Frequency ratio of occupational accidents
10.6

Number of accidents

To ensure the safety and health of our customers and employees

▼
▼

▼
▼

Operating the OSHMS system

There was a slight year-on-year increase in the frequency
ratio of occupational accidents for ULVAC, Inc. alone
but the number of occupational accidents decreased
signiﬁcantly for the Group as a whole. We will continue toseek a reduction of occupational accidents by emphasizing
the enhancement of risk assessment capabilities in ﬁscal
2012.

▼
▼

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 forour customers. By operating our Occupational Safety and Health Management System (OSHMS), which focuses onrisk assessment, we aim to create an ideal environment.

22.2

20
0

▼
▼

Occupational Safety and Health

20.2

27.3

30
10

Labor safety

27.3

▼

50
30

0.78

0.92
0.69

08.06

09.06

Group as a whole

Japan

0.64

10.06

China

South Korea

11.06

Taiwan

North America

12.06

Southeast Asia

1.00
0.80
0.60

32

0.40
0.20
0
（％）

08.06

09.06

10.06

11.06

12.06

▼

O r g a n i z a t i o n ULVAC Group Organization

U LVAC RE P O RT 2012

Global Corporate Citizenship Initiatives
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.

VAC!""Cheer up, UL

viewing festival
Cherry blossom
NO, Ltd.−−ULVAC TECH

VAC!"

"Cheer up, UL

Chigasaki
e support for evention
th
g
in
rc
fo
n
ei
R
disaster pr
City regarding−ULVAC, Inc.−ULVAC concluded a disaster prevention agreement in March2011 with Chigasaki City, which is where the ULVAC headquarters and the Chigasaki Plant are located. The agreement
is designed to ensure collaboration in case of disaster andas such it prescribes seven items of support to be delivered,including the supply of places for (1) housing evacuees, (2)installing community wireless systems and (3) storing sheltermaterials for emergency occasions. According to the agreement, we are promoting readiness for emergencies. Specifically, we allowed access to our premises for evacuation
drills by neighboring communities and to the ULVAC buildings
to confirm evacuation routes, as well as letting the parentsof neighborhood elementary school students tour the ULVAC
facilities that would receive their children if they sought refuge on the way to or from school. Furthermore, we received

and offered storage places for blankets, emergency radio
communication system and other emergency equipment
provided by Chigasaki City, while expanding the range ofsupplies, including food and beverages, that we reserve for
emergencies. Due to its conclusion of the disaster prevention
agreement with the city, ULVAC has gained the increasing
attention of and garnered expectations from local residents
and is considering further eﬀorts to boost support.
VAC!""Cheer up, UL

y incleanup activit
Munsan R iver of World Water Dayncommemoratiod.−rials Korea ,Lt−ULVAC MateULVAC TECHNO, Ltd. held a cherry blossom viewing
festival on April 7, 2012 and allowed the public toenter the site of ULVAC s Chigasaki CS Center, oneof Chigasaki City s famous spots for beautiful cherrytrees. Although the precious old cherry trees were30%‒50% in bloom, the number of visitors exceeded
1,000. The festival was boosted by food stalls from local
gourmet restaurants and other attractions.

VAC!""Cheer up, ULd) Project
Tanbo (rice ﬁelInc.−−ULVAC,NO, Ltd.−−ULVAC TECH

Fifteen employees from the Paju site of ULVAC Materials
Korea, Ltd., which handles environmental technologies,
joined the cleanup activity that took place at the Wollong
Waste Water Treatment Facility in Paju City and near
Munsan River on March 22, 2012 in commemoration ofWorld Water Day.
VAC!"

"Cheer up, UL

wasntary cleanup
The 50th volu e local communitythconducted for
ic Limited−−Reliance Electr

The third year of the Tanbo Project kicked off with aplanting event on May 26, 2012. The rice-field acreage
has increased each year so that it is now four times thatof the initial year, raising expectations for the project as

33

U LVAC G r o u p O r g a n i z a t i o n

an opportunity to expand communication among family
members and the community. This year, we plan to makedoburoku, or unrefined sake, using harvested rice incooperation with a local sake brewer.

Reliance Electric Limited s voluntary cleanup activity
f o r a re a s a ro u n d i t s Yo ko h a m a o f f i c e i n A p r il 2 012
marked the 50th such effort since the activity began in
July 2005. The 1,597 volunteers who have participatedin this activit y havecollected 679.2
kilograms of garbage.
R eliance Electric willcontinue to engage inthis cleanup activity.

34▼

M a n a g e m e n t ULVAC Group CSR Management

U LVAC RE P O RT 2012

ISO26000 Core Subjects and ULVAC s Engagement
Core subjects
Organizational
governance

Human rights

Labour practices

The environment

Fair operating practices

Consumer issues

Community involvementand development

35

IssuesIssue 1

Organizational governance

Issue １Due diligence

Issue ２

Human rights risk situations

Issue ３

Avoidance of complicity

Issue ４

Resolving grievances

Issue ５Discrimination and vulnerable groups

Issue ６

Civil and political rights

Issue ７

Economic, social and cultural rights

Issue ８Fundamental principles and rights at work

Issue １

Employment and employment relationships

Issue ２

Conditions of work and social protection

Issue ３Social dialogue

Issue ４

Health and safety at work

Issue ５

Human development and training in the workplace

Issue １Prevention of pollution

Issue ２

Sustainable resource use

Issue ３

Climate change mitigation and adaptation

Issue ４

Protection of the environment, biodiversity andrestoration of natural habitats

Issue １Anti-corruption

Issue ２

Responsible political involvement

Issue ３

Fair competition

Issue ４

Promoting social responsibility inthe value chain

Issue ５

Respect for property rights

Issue １

Issue 1 Fair marketing, factual andunbiased information and fair contractual
practices

Issue ２

Protecting consumers health andsafetyIssue ３

Sustainable consumption

Issue ４

Consumer service, support, andcomplaint and dispute resolution

Issue ５

Consumer data protection and privacy

Issue ６

Access to essential services

Issue ７

Education and awareness

Issue １

Community involvement

Issue ２

Education and culture

Issue ３

Employment creation and skills development

Issue ４

Technology development and access

Issue ５

Wealth and income creation

Issue ６

HealthIssue ７

Social investment

I S O 26 0 0 0 C o r e S u b j e c t s a n d U LVAC's E n g a g e m e n t

Relevant pages
Pg. 37 Corporate GovernancePg. 25 Personnel Policies
Pg. 37 CompliancePg. 25 Personnel Policies
Pg. 26 Personnel Data
Pg. 27-28 Roundtable Discussion among
Overseas Trainees
Pg. 29 CSR Awareness Survey
Pg. 30 ULVAC s Vacuum Technologies Are
Supported by Consistent Eﬀorts to Ensure Good
HealthPg. 31-32 Occupational Safety and HealthPg. 21-24
Enhanced Environmental Management
Environmental Performance
Toward Reduction of Waste Volume by
the Segregation of Waste

Involvement with Stakeholders
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.
Stakeholders

Communication policies

Customers

With a high priority on a trusting
relationship with customers, we
engage in various efforts to enhance the quality and safety ofour products.

Suppliers

We strive to maintain and promote fair and appropriate transactions with our sup plier s tohelp establish a secure relationship of mutual trust.

Responsible
departments

Fiscal 2012 activities

All business operating
divisions
Corporate Sales &Marketing DivisionCorporate Production
Control Oﬃce
Intellectual Property &Licensing Department
Research &Development Division●Claim Management System●Globalization of the ULVAC brand●Globalization of the qualit y inspection
systemProcurement Center
Production Control Ofﬁce●3S acronym of (Simple, Same and Standard)●Supplier certiﬁcation system

disclosure of business acShareholders and timely
tivities and financial information
investors
to promote communication withManagement Planning
Department
General Administration
Department●Issuance of ULVAC reports●Financial results presentation materials
and other IR communication

We endeavor to provide employees with diverse working opportunities and an environment inwhich they can work in comfort
and with a sense of security.

General Administration
Department
Personnel Department
Corporate
Environment,
safety and Health
Department●CSR awareness survey●Promoting mental and physical health●Operation of the occupational safety andhealth management system

We endeavor to ensure theshareholders and investors.

Pg. 18 Intellectual Properties
Pg. 37 Compliance

Employees
Pg. 17-18 Improve the ULVAC Brand
Pg. 19-20 Quality Improvements to
Pursue with SuppliersPg. 13-16 Feature: Technologies
Pg. 33-34 Global Corporate
Citizenship Initiatives

Environment

Local
community

We c o n s id e r gl o b al e nv iro n mental preservation as achallenge to be shared by
all p e o ple, a n d we e n g a ge inenvironment-friendly business
operations.

Management Planning
Department
Corporate
Environment, Safety &Health Department

We perform social contribution
activities based on the prac tices and cultures of the countries and regions in which we
operate.

Management Planning
Department
General Administration
Department
Personal Department●Environment-friendly factory
construction●Feed-in tariﬀ (FIT)●Tanbo Project● D i s a s t e r p re v e n t i o n a g r e e m e n t w i t h
Chigasaki City
●Munsan River cleanup activity●Local cleanup volunteering

I n v o l v e m e n t w i t h S t a ke h o l d e r s

36▼M a n a g e m e n t ULVAC Group CSR Management

U LVAC RE P O RT 2012

Corporate GovernanceCompliance 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
Office that 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.
ULVAC s Management Structure

Operational Structure

For making decisions on particularly important managerial
issues, ULVAC has the Board of Directors, which consistsof nine directors, including three external directors, andmeets as required in addition to regular monthly meetings.
For monitoring managerial decisions and businessexecution, ULVAC has the Board of Corporate Auditors,
which consists of ﬁve corporate auditors, including threeexternal auditors.

ULVAC has the Board of Standing Directors and Auditors
to supplement the decisions made by the Board of
Directors, further enabling the prompt and efficient
execution of business operations. Meetings of the Boardof Standing Directors and Auditors are held twice amonth, and additional ad hoc meetings are held as
required. The Board of Standing Directors and Auditors
has 13 members consisting of standing directors andexecutive oﬃcers.

As of September 30, 2012

General Meeting of Shareholders
Appointment

Dealing with Acts of Violation
If, as the result of an investigation, the Compliance
Committee 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
are imposed in the case of serious violations after

ULVAC, Inc● ULVAC Management Structure

Appointment

Board of Corporate Auditors

Board of Directors
Audit

2 Corporate Auditors
3 External Corporate Auditors

6 Directors
3 External Directors

Collaboration

Independent Auditors

ReportPresident and CEO

Accounting
Audit

Board of Standing Directors and Auditors
Group Council of Presidents
Collaboration

Executive
Officers

Collaboration

Internal Auditing DivisionInternal
Audit

ULVAC Group companies

Chief Risk Officer The= President and CEO

Chief Risk Officer
ULVAC Grouphas developed an organization that facilitates prompt and appropriate action= President and CEO
against increasingly complex and diverse risk factors, through a process of identification, classification,
analysis, and evaluation. By linking the risk management system to strategic business administration,
we seek to achieveeven greater corporate value.
Risk Management

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

Risk Management Committee(Controls entire business risks)Committee

Creating a Risk Management System

The ULVAC Group believes that expanding the risk
management system is a critical business task. Thus, wehave established the ULVAC Risk Management Policy toensure that there are common rules across the ULVAC
Risk Control Risk Control Group.
Risk Control The President
Risk Control
Risk Control
Risk Controlof eachgroup
company assumes theofficeofficeofficeofficeofficeofficeposition of Chief Risk Oﬃcer and shares risk information
・ Risk management activities are implemented by the responsible departments
through the PDCA processes.

ULVAC Risk Management System

All Divisions
Group Companies

・ Each group company decides upon the necessity of establishing its Risk Management
ULVAC
has
Committee in considerationof its size andotherclas
factors. sifie d a wide range of ris ks, and has

Compliance

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

U LVAC G r o u p C S R M a n a g e m e n t

Collaboration

Collaboration

content of this code.
Internal
Internal Auditing Division
Audit
The booklet helps employees to act in compliance with thelaw as a representative of our business.

with related departments. Important information is promptly
conveyed from the President of each group company to
the President of ULVAC, Inc.

● Risk Management System
ULVAC Group companies

ULVAC, Inc
Chief Risk Officer= President and CEO

Risk Management Committee(Controls entire business risks)

Risk Control Risk Control Risk Control
officeofficeofficeChief Risk Officer= President and CEO

Reporting and instruction
for improvement

set up departments responsible for each of them. Eachdepar tm ent functions as an informationc enter
As of September
30, 2012thatG e n e r a l M e e t i n g o f S hworksa r e h owith
l d e r srelated departments to identify and evaluate
all speciﬁc risks. In addition, the responsible departments
Appointment
Appointment
Appointment
constantly collect risk information, respond appropriately
to risks and detect issues. For risk information deemed
to be important in the
Compliance Committee
evaluation process, we continually
collect information
Board of Directors
Board of Corporate Auditors
Chairmantoenableprompt
re
s
p
ons
e
s
to
em ergencie s. A Ris k
Audit
President
andCEO
6 Directors
2 Corporate Auditors
Management Committee, chaired
by ofthePresident
Director in charge
management
planning, and3 External Directors
Auditors
To introduce systems for full compliance with laws and regulations, the ULVAC Group3 External
has Corporate
systematicallyand others
comprised of the departments
responsible for the risks,(Administrative office) Internal Auditing Division
established Compliance Regulations and related rules. In accordance with these Collaboration
regulations and rules, thehas also been established to verify the risk management
system.
ReportULVAC Group has also established operational procedures for the Compliance
Committee
andtheCompliance
President
andCEO
Accounting
Independent Auditors
As the supervising organization for risk management, the
Audit
Violation Reporting System and has been working to cement a spirit of compliance across the company.
Board of Standing
Directors and Auditorsmeets twice a year to set out basic policies
Committee
Group Councilandof Presidents
improve the management and operation.

Establishment of a Corporate Code of Conduct

examination by the Disciplinary Committee. In addition,
the fundamental causes that brought about the violation
are also studied to formulate effective measures forpreventing recurrence.

Risk Management
Reporting and instruction
for improvement

Appointmentof each department serve as members of the Compliance
Committee to ensure prudent examination while assuring
the fairness of internal investigations. Each member
is required to maintain strict confidentiality, and tooperate the system so that reporters and investigators
are not treated 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.

Risk Management
Committee

Risk Control Risk Control Risk Control
officeofficeofficeExecutive
Officers

All Divisions
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▼

M a n a g e m e n t ULVAC Group CSR Management

U LVAC RE P O RT 2012

Board of Directors and Auditors
1
16

15

13

10

6

14

12

5

Board of Directors and Auditors

President andChief Executive Oﬃcer

2

Hidenori Suwa

3

Yoshio Sunaga

4

Chairman

7

Takashi Minagawa

13

Takao Nakamura

19

Senshu Asada

8

Yoshinobu Nakano

14

Dr. Kazuya Saito

20

Takao Nonaka

External Director

External Director

Executive Oﬃcer

Executive Oﬃcer

External Auditor

19

20

21

External Auditor

18

11

4

9

Syuzo Ikeda

15

Setsuo Iwashita

Mitsuru Motoyoshi

10

Yoshifumi Sato

16

Dr. Paik Choong Ryul

5

Masasuke Matsudai

11

Hiroyuki Hirano

17

Nobuo Oi

6

Hideyuki Odagi

12

Masatoshi Yamamoto

18

Hironobu Machidori

1

39

Hisaharu Obinata

Director andSenior Exective Oﬃcer

Director and Executive Oﬃcer

Director and Executive Oﬃcer

Director and Executive Oﬃcer

External Director

Executive Oﬃcer

Executive Oﬃcer

Executive Oﬃcer

Executive Oﬃcer

Executive Oﬃcer

21

Susumu Sakaguchi

3

External Auditor

17

7

8

9

(As of September 30, 2012)
2

Auditor

Auditor40

50,000

11,087 200

200
17,82775,00075,00012,719160,375251
251

Depreciation

10,932

12,32011,94910,717

9,096

114,683

8,255

7,088

89,377
12.06
12.06
11.06
12.06

21 5

5

−

−

−

−

−

−

100
100

OTHER INFORMATION

0

3.8
0
00

1.6
08.06
08.06

1.6 2.2
09.06
09.06

2.2
0.8 11.06
11.06

10.06
10.06
0.8

Net income /Average shareholders equity (ROE)

4.0

0.9

2.3

−

−

−

shareholders' equity ratio

29.1

26.4

31.3

28.1

14.8

14.8

-5
08.06

−

−

08.06
09.06

09.06
10.06

10.0611.06

-3.2
−

-3.2

11.0612.06

12.06

40

1515
40

□ Disclaimer regarding forward-looking statements

43

14.4
14.4

43

48

48

34

34

55

advances and fierce competition. Consequently, actual earnings may vary substantially from the

08.06

25,0002.1
20,000 2.1
20,000 400
2210,932

7

1
00
1
2.2
1.6
performance to fluctuate. The factors that could cause results to0 differ0 materially 1.6
fromthe2.2statements
-3.7
0.8
0.8

herein include the world economy; fluctuations in the exchange rate; market conditions for flat-panel
-5-10
-5

08.06

41

08.06
09.06

09.06
09.06
09.06
10.06

10.06
10.06
10.0611.06

11.06
11.06
11.0612.06

196,804
196,804

43,103232,040
232,040

221,804
221,804

10.06
10.06

11.06
11.06

12.06
12.06

-3.7

100
5,000
5,000

-3.2
-3.2
12.06
12.06
12.06

10.06
11.06
12.06
10.0611.06
11.0612.06

6,125

10,00010,00020,00020,0006,125

100,0000

100,0000-10,000

10,00010,000-10,000

50,000-20,000-20,000
50,000-30,000

00-25,944-30,000240-31,891

09.06
08.06
08.0609.06-10,876-14,833-8,492

09.06
09.06

10.06
10.06

100,000 100,0-11,328-11,328-14,833

50,000 50,0

-19,820-19,820-25,94408.06
08.06-31,891

0

08.06
08.06

2,896
-8,492150,000 150,0

11.06
11.06

12.06
12.06
0

-45,942-45,942
10.06
11.06
12.06
09.06
10.06
11.06
09.0610.06
10.0611.06

12.06
11.0612.06

08

12.06

● R&D costs（Millions of yen）
■営業
■営業
CFCF ■投資■投資
CFCF ■差引
■差引
CFCF
■純資産
■自己資本比率

563

2.0
2.0

1.9
1.9
215

271

0.72
0.72

2,896

-14,051-14,051-10,876-40,000

33,436

17,73050,00050,000125,000
40,00040,00010,000 10,000
29.1
32,06832,068100,000
30,00030,0001.9
1.9

33,436200,000 200,0■ Europe, others■ Other Asia
■ China■ South Korea■ Taiwan
17,730■ Japan

34,73534,73532,06832,06830,00030,00030,000150,000
20,000

12.06

0.70
0.70

8,000
20,00020,000
8,000

1.9
1.9

75,00010,00010,000

0.74
0.74

251

0.7
0.7

09.06
10.06
11.06
12.06
0 08.06
08.06
08.06
09.06
09.06
10.06
10.06
11.06
11.06
12.06
12.06
08.06
09.06
10.0611.06
11.0612.06
12.06
08.06
09.06
10.06

26.4

28.1

33,43633,43628
17,73017,730

2,896
2,896

-14,051-14,051

6,000
00
50,000-10,000-10,000
4,000
4,000-20,000-20,000
25,00014.8

21-8,492-8,492

14-10,876-10,876-14,833-14,833-11,328-11,328-19,820-19,820-25,944-25,944-30,000-30,000
2,000
2,000-31,891-31,891-40,000-40,0000
08.06

0

35

44,312
44,312
31.3

6,125
6,125

6,000

000
0

30,000150,000
20,000-40,000
0

25,000500

2001
10,00010,000 1
0.78
0.78

7
projections included in this report due to a number of factors that could
cause,
directly
or indirectly,
3.8
3.8 3
3 3
3

displays, semiconductors, and electric devices; and trends in capital investments.
08.06
08.06

09.06
09.06

0
08.06
09.06
08.0609.06
09.0610.06

00

15,00015,000 300

29

semiconductor, and electronic parts industries face the challengeof 20
the rapid pace of technological20-10223,825
223,825

08.06
08.06

1010

10

0.7

expenditures ■Depreciation■Capital
600■減価償却費■設備投資額3330
30 flat-panel
32
time these documents were prepared. Ulvac s customers in thedisplay (FPD),
Solar
cells,
32

1077■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

Forward-looking statements of the company in this report are based on information available at the
29

0.74
0.7

● Capital expenditures／Depreciation（Millions of yen）

19.4
19.4
■借金依存度（％）■インスタント・カバレッジ（回）2020■借金依存度（％）■インスタント・カバレッジ（回）
19.1
19.1
18.3
18.3
17.7
17.7
50

0.700.74

00

12.06
12.06

■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
U.S. dollar amounts have been converted from yen, for convenience only, using the approximate exchange rate on June 30, 2012, which was U.S.$1 = ¥79.31.

50

0.720.7000

1.2

0.7 -525,00025,000175,000
0.78
0.78
0.72

1

Net income /Average total assets (ROA)

0.3

241,212241,212

251
251

(%)

3.8

1414

44,312

44,312

7,088

21

10

200
200

1.9

50,000200,000
40,00040,00040,00041,18721

1050,000200,000

7,088

42.65

2

14.8
14.8

1.9

9.096

17.44

(12.77)2121

12,71978.20

240 (1,012.94)(176.43)240
271
271

2.0

1.9 2.0

1.9 1.91.9
2150,000
50,00050,0009.096−Diluted

215
215

300
300

75,00075,0002.1
2.1

250,000 250,0

250,000

50,00050,000■営業 CF ■営業■投資CF
CF ■投資■差引CFCF ■差引 CF

40,00017,827

46.60

14.4

2828

12,71910,717

18.90

9.47
14.4

15

28.1
28.1

10,71784.16

751.003100,000
100,000
225,000

3

31.3
31.3

26.4
26.4

29.1
29.1

17,827−BasicCash dividends

1,787.51
400
400

15

17.718.3

3535

11,949Net income (loss)

1,992.06

19.4

19.4
18.3

250,000

300,000
125,000
125,000 ■固定資産回転率■総資産回転率■総資産回転率■固定資産回転率

11,9491,961.08

563
563

11,0872,052.48

19.1
17.7

■純資産 ■自己資本比率■純資産■自己資本比率

43,103
196,804
43,103

6,981● Net sales by region（Millions of yen）

8,255

6,981

0
08.06
08.0609.06
09.06
10.06
11.06
08.06
08.06
09.06
10.06
10.06 09.06
11.06
11.06 10.06
12.06
12.06

92,023

7,878

600
600
■売上総利益率■売上営業利益率■売上総利益率■売上営業利益率(yen)● Orderds received（Millions of yen）

2010-20122010-2012■Others■Others■Material■Material
equipment
equipment■Industrial■Industrial■components■components■Semiconductor■Semiconductor
andandelectronic
electronic
devicedeviceproduction
production
equipment
equipment
production
production■PV■PV
production
production
■FPD
■FPD
11.06
12.06
12.06

232,040

7,169

0 00

8,005
8,255

6,871

0

221,804

6,356

0
12.06

2008-20102008-2010■Other■OtherBusinesses
Businesses■others■others■Components■Components■Semiconductor■Semiconductor
production
production
equipment
equipment
andand■Display■Displayelectronic
electronic
devicedeviceproduction
production
equipment
equipment

35,80835,808

Number of employees

10,000102,504

519,315

50,00050,00010,000

8,344
8,005

41,187

7

223,825

92,023

7

36,20836,208102,504

20,00090,15890,15820,000241,21291,85314

37,04037,040Net assets/Shareholders equity

14

30,00030,00091,8538,586
8,344

3,147,788

40,00021

41,187
41,187

249,651

08.06
09.06
09.06 09.06
10.0610.06
11.06
12.06
08.06
08.06
09.06
10.0610.06
11.06
11.06 11.06
12.06
12.06

92,02392,023

313,616

40,00021
14.8

152,221313,784

Net assets

0
00
08.06

12.06

50,000150,000
150,000

14.8

235,932

318,07620

50,00050,00025,000102,504
102,504

303,06928

50,000200,000
200,000

100,000
100,000

221,705

09.06
09.06 10.06
10.0610.06
11.06
11.06
09.06
10.06
11.06

Total assets

500
500
20
19.1

25,000008.06
08.0608.06
09.06

08.06

YEAR-END DATA

50,00000

0050,00090,15890,158100

28100,000
100,000(630,238)

19,567100

35

34,735

19,567215
240271
271(49,984)

35
28.1

34,73523,382(8,706)

11.06
12.06

35,808
43,103

Capital expenditures

300
240

10.06
11.06

36,20835,808

2,138

09.06
10.06

41,187

811

08.06
09.06

08.06

92,0233,610

75,00075,000(424,971)

215

0

0

12.06

41,187

Net income (loss)

300(33,704)

102,504
92,023

4,558

90,158102,504(1,600)152,221
152,221

6,451

8,005

(9,192)(80,494)

31.3
28.1

172,212(6,384)150,000
150,000

150,000
150,000

11,087
12,320

400
1,850

26.4
29.1

29.1
100,000 100,000

1,919,312

Income (loss) before income taxes

PER SHARE DATA

11.06
12.06

● Net sales by business segment（Millions of yen）

31.3
26.4

91,85390,158152,221500

125,000 125,000
200,000
200,000

293,110

4,809 400

235,932

563

91,85391,853500

563

19,567

221,705

2,481,453

12,320172,212

196,804

10,932

293,110232,040
225,000
225,000

91,853

Orderds received

8,344

10.06
11.06

250,000
250,000

23,382

221,804

2012.06

23,382

223,825

8,586

09.06
10.06

250,000
250,000

235,932
235,932

241,212

R&D costs

08.06
09.06

08.06

■純資産 ■自己資本比率■純資産 ■自己資本比率

2012.06

221,705
221,705

2010.06 600 2011.06
600

172,212172,212Net sales

3,483

0

0

12.06

Thousands of
U.S. dollars(except per
share amounts)

300,000
300,000
Millions of yen (except per share amounts)

2009.06

9,081

11.06
12.06

● Net sales（Millions of yen）

2008.06

Operating income（loss)

10.06
11.06

293,110
293,110

FOR THE YEAR DATA

09.06
10.06

8,586

08.06
09.06

08.06

50,00037,04036,2080050,00037,04050,000Financial Highlights

F i n a n c e Financial Highlights

75,00075,000■材料・部材2010-2012■一般産業用機器■Others■コンポーネント■Material■半導体及び電子部品■Industrial equipment■PV 製造装置■components■FPD 製造装置■Semiconductor
and electronic device
production equipment■PV production■FPD production
12.06

100,000 100,000

▼

152

152,

U LVAC RE P O RT 2012

100,000 100,000

0
08.06
08.06
08.06

-45,942-45,942
09.06

7

0
10.06

11.06

12.06

09.06
09.06
10.06
10.06
11.06
11.06
08.06
09.06
10.06
11.06
09.06
10.06
11.06
12.06

12.06
12.06
12.06

42

Fi n a n c i a l H i g h l i g h t s■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）expenditures
expenditures ■Depreciation■Depreciation■Capital■Capital■売上総利益率 ■売上営業利益率
25,00025,000■総資産回転率 ■固定資産回転率
10,00010,000■▼F i n a n c e Analysis of Business Results

U LVAC RE P O RT 2012

Business Overview

43

152,221
152,221
152,221

Components
22,162(11.3%)

South Korea
34,099（17.3%）

Semiconductor andelectronic device
production equipment
29,235(14.9%)「Overseas」
108,253（55.0%）

240
240

271
271
271

75,00075,00075,000

215
215
215

251
251

50,00050,00050,000251

196,804
196,804
196,804

31.3
28.1
31.3
31.3 28.1
28.1

14.8
14.8
14.8

25,00025,00025,000

100
100
0
0

26.4
26.4
29.1
29.1
29.1 26.4

08.06
08.06

09.06
09.06
09.06

10.06
10.06
10.06

11.06
11.06
11.06

00
0

12.06
12.06
12.06

08.06
08.06 09.06
09.06 10.06
10.06 11.06
11.06 12.06
12.06
08.06
09.06
10.06
11.06
12.06

A n a l y s i s o f B u s i n e s s Re s u l t s
profit to net sales ■Operating profit to net sales■Gross■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
20
20
15

19.1
19.1

17.7
17.7
17.7

18.3
18.3
18.3

19.4
19.4
19.4

■Totalassets turnover ■Fixed assets turnover■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
3

14.4
14.4
14.4

35
35
35

50,00050,00050,00028
28
28

40,00040,00040,00021
21
2130,00030,00030,00014
14
14

20,00020,00020,00077
7

10,00010,00010,000

00
0

00
0

08.06
08.06
09.06
10.06
11.06
12.06
08.06 09.06
09.06 10.06
10.06 11.06
11.06 12.06
12.06■Cash flows from operating activities
flows frominvesting■差引activities
■Cash
■営業
CF ■差引 CF
CF■営業 CFCF ■投資
■投資 CF50,00050,00050,00034,73534,73534,735100,000
100,000
100,000

200
200

Taiwan22,252（11.3%）

125,000
125,000
125,000

43,103
43,103
43,103

563
563
563

400
400
300
300

232,040
232,040
232,040■自己資本比率■純資産
net assets■Shareholdersʼ equity ratio■Total■自己資本比率
■純資産

600
600

total
196,804

221,804
221,804
221,804

Shareholders equity ratio (%)

「Japan」
88,551（45.0%）

500
500

China
25,981（13.2%）

223,825
223,825
223,825

241,212241,212241,212

235,932
235,932
235,932

221,705
221,705
221,705

08.06 09.06 10.06 11.06 12.06

09.06
10.06
08.06
09.06
10.06 11.06
11.06 12.06
12.06
（％）
● Debt 08.06
ratio

35,80835,80835,808Industrial equipment
22,283(11.3%)■-------■-------■-------■-------■-------■-------■-------■-------■-------■Others■-------■-------■-------In the control-system-related market segment,
orders
2011-20122011-20122011-2012
100,000
100,000
100,000■-------■-------■-------received and sales increased, reflecting thereturn to■-------■-------■-------a recover y path of capital expenditures in
the metal■-------■-------■-------50,000
50,00050,000■-------■-------processing and automotive industries and■-------the launch■-------■-------■-------■-------■-------■-------000000■-------08.06
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
08.06
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
of yen）● Total net assets (Millions of yen）／● SG&A expenses (Millions
150,000
150,000
150,000

36,20836,20836,208Material
15,885(8.1%)■Materials
With respect to the sputtering target materials for LCDs,
w hich ac c ount for mo s t of the s ale s of the materials
market segment, sales and orders received came mainly
f ro m A s ia . A lt h o u g h w e a g g re s s i vel y p ro m ote d o ursolution businesses combined with production equipment,o u r c o s t- c u t t i n g e f f o r t s f a i l e d t o c o m p e n s a t e f o r
250,000
250,000
250,000
decreased production
by major panel manufacturers andthe pressure to cut prices, and the business 2008-2010environment
2008-20102008-2010
200,000
200,000■-------200,000■-------■-------remained severe.

37,04037,04037,040Europe, others
11,125（5.7%）■Semiconductor and electronic device
production equipment
In the s emic onductor and ele ctronic devic e -relate dmarket segment, sales were recorded mainly for the
250,000
300,000
TM
250,000
300,000
250,000-EX series of sputtering equipment
for memory
ENTRONto Asia and the United States against the backdrop of
200,000
200,000high
demand for smartphones and tablet200,000
PCs. We also
225,000
225,000
received inquiries for production equipment for nonvolatile
150,000
150,000m e m o r y, w h i c h i s h i g h l y e x p e c t e d t o 150,000
b e t h e n e x t150,000
150,000
generation memory, and production equipment for power
100,000
100,000
semiconductors, which are indispensable 100,000
for increasing
75,000theeﬃciency of electricity use and energy conservation.
75,00075,00050,00050,00050,000On the other hand, orders received and sales of LED

Vacuum Application Business

The operating results of the vacuum application businessby market segment are as follows:

41,187
41,187
41,187

PV production
equipment
6,695(3.4%)

Others21,020(10.7%)■PV production equipment
In the PV-related market segment, sales were recorded
mainly for compound-t ype and cr ystal-t ype solar cell
production equipment to China and South Korea. Despites o m e order s re c eive d for c o mp ound -t y p e and high efficiency crystal-type solar cell production equipment,
orders for thin-film type solar cell production equipment
remaine d s ta gnant. Henc e, s evere s ale s c onditions
continued, as a whole.

92,02392,02392,023

total
196,804

Other Asia
14,796（7.5%）■Industrial equipment
In the industrial equipment-related market segment, orders
received and sales of vacuum heat treatment furnaces
for rare - e ar th sintere d ma gnet pro duction, vacuum
melting furnaces and vacuum deposition equipment for
automotive par ts were robust in China. However, theorder reception environment was severe, as a whole,because touch-panel-related capital expenditures weresuspended by many of our prospective clients.
As a result, the vacuum equipment business saw orders
received of 114,8 9 9 million yen, an order backlog of
55,118 million yen and net sales of 159,899 million yen. An
operating loss of 7,355 million yen was recorded for theyear.

102,504
102,504
102,504

FPD production
equipment
79,524(40.4%)

Vacuum Application
Business
36,905(18.8%)■FPD production equipment
In the FPD-related market segment, sales were posted
for sput tering equipment for large LCD T Vs mainly to
the Asian region, as well as for sputtering equipment forthe production of small to medium-sized LCDs for mobile
devices, plasma enhanced chemical vapor deposition (PECVD) equipment and OLED production equipment. Orders
received during the fiscal year under review included
those for sputtering equipment for small to medium-sized
LCD production for mobile devices, OLED production
equipment for mobile devices and lighting use and touchpanel production equipment to Japan and South Korea.
However, affected by the rapid reduction in demand for
LCD TVs and the economic setback, sales in this market
segment remained sluggish.

90,15890,15890,158

Vacuum Equipment
Business
159,899(81.2%)

The operating results of the vacuum equipment businessby market segment are as follows:00● Net sales by region（Millions of yen）

■Components
I n t h e c o m p o n e n t- r e l a t e d m a r ke t s e g m e n t , o r d e r s
received and sales of dry pumps, etc., for FPD production
equipment remained slug gish due to the impact fromthe postponement of large -scale LCD -related capital
expenditure projects. However, orders received and sales
related to cryopumps for OLED production equipment andmeasuring instruments remained robust.

Vacuum Equipment Business

91,85391,85391,853● Net sales by business segment（Millions of yen）

production-dedicated dry-etching systems and deposition
systems declined because demand for LEDs for lighting
and for the backlights of LCDs as a response to energysaving needs decreased drastically mainly in China.

e x p e n s e s o f 24 ,7 3 8 m i l l i o n y e n i n c l u d e s a l o s s o ndevaluation of inventories of 8,490 million yen, a losso n d i s p o s a l o f f i xe d a s s e t s o f 6 , 0 5 2 m illi o n y e n , a n
impairment loss of 5,107 million yen and special additional
retirement beneﬁts, etc., of 4,730 million yen.

172,212172,212172,212

D u r i n g t h e f i s c a l y e a r e n d e d J u n e 3 0 , 2 012 , t h eJapanese economy continued to face severe conditions
due to several uncertain factors such as the lingering
impact of the European debt crisis and concerns aboutp o s s ib l e p o w e r s h o r t a g e s d e s p i te s eve ral s i g n s o fgradual recovery such as demand for reconstruction
following the Great East Japan Ear thquake and solid
personal consumption centering on the elderly, who
drive domestic demand. In the United States, a gradual
undertone of recovery was seen with positive signs suchas a decline in the unemployment rate and improved
personal consumption and housing starts. In Europe, theeconomy was at a stalemate in several countries withnegative factors such as the debt crisis and a heightened
unemployment rate. The Chinese economy continued togrow, but the pace of growth gradually slowed.
Under these circumstances, in the ﬂat panel display (FPD)
industry, in which ULVAC s main customers are involved,
although some LCD panel manufacturers postponed
capital expenditure schedules due to the struggling largeTV market, sales of mobile devices including smartphones
and tablet PCs remained robust. Centered on the Asian
region, new capital expenditures for small to medium-sized
LCDs and organic light-emitting diodes (OLEDs) remaineds t e a d y. I n t h e s e m i c o n d u c t o r i n d u s t r y, t h e m a r ke t
remained relatively robust thanks to growing demand formemory generated by the increasing demand for mobile
equipment such as smartphones and tablet PCs despitesluggish demand for PCs. In the energy and environmentrelated industries, amid eﬀorts to reduce greenhouse gas
emissions, demand continued to grow for energy devices
such as power semiconductors and secondary batteries,
as well as solar cells and eco cars including hybrid andelectric vehicles (EVs).
To prevail in this operating environment, the ULVACGroup enhanced the competitivene s s of its existingproducts including semiconductor production equipment
and FPD production equipment, and started proactive
m ove s aim e d at incre a sing it s c orp orate valu e overthe medium to long term. Such initiatives included thedevelopment of leading-edge products to differentiate
our products from competitors products, aggressive
promotion of the 3S campaign― Simple (Simplification),
Same (Commonization) and Standard (Standardization)―and steps for further globalization.
In terms of profits, amid sustained requests for pricereductions from customers, the continued appreciationof the yen and severe price competition with other Asian
manufacturers of production equipment, we streamlined
fixed costs by trimming various expenses across theGroup, as well as cut ting back capital expenditures.
In a d ditio n, w e p u s h e d a h e a d w it h c o s t c ur t ailm e nt
by implementing production innovations including, inparticular, the promotion of an enhanced global production
structure through the transfer of production bases toSouth Korea, Taiwan and China, and an increase in thelocal procurement rate. Furthermore, given an extremely
severe order reception environment, we carried out
emergency measures such as a par tial cutback in
officers compensation and salaries for managerial staff
and the temporar y layof f of workers to reduce fixed
costs.
N ever t h ele s s , a s it ha s b e c o m e dif fic ult to e n s ure
p r o f i t s i n t o d a y s s e v e r e m a r ke t e n v i r o n m e n t , t h eCompany formulated the Business Structural Reform
Plan to evaluate growth fields where high future profits
can be expected, radically shift corporate assets andpersonnel and considerably reduce ﬁxed costs to solidify
its competitive edge and business structure. The first
specific measure to reduce losses such as streamlining
fixed costs was carried out during the fiscal year underreview.
Consequently, for the consolidated performance during
the fiscal year ended June 30, 2012, orders received
decreased by 83,712 million yen, or 35.5% year on year,
to 152,221 million yen, and net sales dropped by 35,236
million yen, or 15.2% year on year, to 196,804 million yen,reﬂecting a decline in orders received for FPD production
equipment and PV production equipment̶a trend that
seems unlikely to change in the foreseeable future. For
consolidated profit and loss, which was considerably
af fected by the decline in sales mainly for the highly
profitable FPD production equipment and the effect ofadditional costs accrued for equipment that incorporates
features with high development costs, an operating loss of
6,384 million yen was recorded (compared with operating
profit of 1,850 million yen for the previous fiscal year). An
ordinary loss of 6,497 million yen was recorded (comparedwith ordinary profit of 1,441 million yen for the previous
fiscal year). As extraordinary losses of 27,403 million
yen including business structure improvement expenses
were posted and deferred tax assets were reversed,
the net loss totaled 49,984 million yen compared with a
net loss of 8,706 million yen for the previous fiscal year.
The breakdown of the business structure improvement

293,110
293,110
293,110▼▼

Business Results

40,00040,00040,000 32,068
32,06830,00030,000 32,068

44,312
44,312
44,31233,43633,43633,43644■Free cash flows▼F i n a n c e Analysis of Business Results

U LVAC RE P O RT 2012

million yen, which was mainly attributable to payments foracquisition of tangible and intangible ﬁxed assets and thepayments for acquisition of aﬃliates.
●Cash Flows from Financing Activities
Net cash provided by financing activities totaled 12,616
million yen, chiefly arising from a net increase in shortterm borrowings and the repayments of lease liabilities.
As a result, consolidated cash and cash equivalents
were 28,18 0 million yen at the end of the fis c al ye arunder review, down 7,542 million yen from the previous
ﬁscal year-end.

▼▼

Analysis of Financial Conditions

1：Assets, Liabilities and Net Assets
at Fiscal Year-End▼▼

Business and Other Risks●Assets
Total assets decreased by 63,965 million yen comparedw i t h t h e e n d o f t h e p r e v i o u s f i s c a l y e a r, r e f l e c t i n g
d e c re a s e s of 7, 8 6 2 milli o n ye n in c a s h o n h a n d a n d
i n b a n k s , 15 ,6 8 3 m illi o n y e n i n n o t e s a n d a c c o u n t s
receivable, trade, 14,060 million yen in inventories, 12,065
million yen in deferred tax assets, 13,133million yen in
Property, plant and equipment.

Major potential risk factors that could influence businessper formance and the financial position of the ULVACGroup are as follows:

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

172,212152,221008.06 09.06 10.06 11.06 12.06
2：CashFlows

196,804

150,000●Net
Assets150,000
To t a l n e t a s s e t s d e c r e a s e d b y 5 0 , 8 3 6m i ll i o n y e n
100,000
compared with the end of the previous fiscal year. This
75,000decrease
was attributable to a decline of 49,984
million50,000yen in net loss.
0

The ULVAC Group has grown by developing proprietary
technologies for vacuum equipment used in the
manufacturing process of FPDs, PVs and semiconductors,
and by marketing such devices, which has allowed us
250,000
to build market shares in these fields. These products
2008-2010account for about 60% of our consolidated net
sales and
200,000■-------have become the mainstay of the Group. However,any■-------■-------large reduction 150,000
in capital expenditures by manufacturers■-------o f F P D s , P Vs a n d s e m i c o n d u c t o r s , o u r corporate■-------2011-2012
customers, or any
deterioration
intheﬁ
nancialconditions
100,000■-------of our corporate customers could affect ourbusiness■-------■-------results and ﬁnancial
position.
50,000232,040

221,804

223,825

241,212

235,932

221,705

293,110●Liabilities
Total liabilities decreased by 13,129 million yen comparedwith the end of the previous fiscal year, chiefly owing to
250,000
300,000
an increase of 14,872 million yen in short-term borrowings,
partly offset by a decrease of 26,866 million yen in notes
200,000
225,000
andaccounts payable, trade.

2： Inﬂuence of 0Research
08.06 09.06 10.06 11.06 12.06
08.06 09.06 10.06 11.06 12.06
and Development■-------■-------■-------■--------

0
11.06

● Gross proﬁt to net sales（％）／

Operating proﬁt to net sales（％）■Gross profit to net sales ■Operating profit to net sales
19.1

17.7

18.3

08.06

12.06

19.4

10.06

11.06

12.06

0

08.06

50,00040,0002.1

30,000
1.9

1.9

2.0

1.9

08.06

45

09.06

10.06

11.06

40

43
34

0.74

-3.2
12.06

08.06

09.06

10.06

11.06

12.06

10,000

6,125

2,896

-14,051-10,876-20,000-14,833-25,944-31,891

25,00020,00034,735

5：Inﬂuence of Global Business
Development-11,328-19,820

08.06

The Group has installed qualit y as surance systems,
acquired ISO9001 certification and has been providing

Stock Information

10.06

11.06

12.06

A ﬁnancial covenant is incorporated into some of the loan
agreements that the Group has entered into with ﬁnancial
institutions. Any violation of such financial covenants
might negatively inﬂuence the business performance andﬁnancial position of the Group.

A s applic able to c ompanie s that eng age in global
op erations or in a wide range of busine s s are as, theGroup s business results and financial position could be
negatively aﬀected by 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

48

43

40

32

34

3

3

1

09.06

10.06

11.06

29

30

□ Total number of stocks authorized: 80,000,000□ Total number of shareholders: 27,695

TAIYO FUND, L.P.

Japan Trustee Services Bank, Ltd.(Trust account)
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Inabata & Co., Ltd.
The Master Trust Bank of Japan, Ltd.(Trust Account)（注）持株比率は自己株式（2,949株）を控除して計算しています。

7

0
-10
08.06

-4
12.06

total：49,355,938 shares

Individuals and Other ............................................................................. 19,249,047 shares
Financial Institutions ............................................................................. 13,228,420 shares□ Total number of stocks issued: 49,355,938

Shareholder s name10

● Number of Shares Held(As of June 30, 2012)

Sumitomo Mitsui Trust Bank

09.06

8：Impact on Financing

20

6：Inﬂuence of Quality Assurance Eﬀorts

Association of Employee Shareholders of ULVAC-8,492

7：Inﬂuence of Intellectual Property Rights

9：Other Risks

To secure market share in China, a prospective future
growth market, the Group has proactively advanced into
China and is pursuing business initiatives through locallyincorporated subsidiaries. Although arrangements havebeen put into place at locally incorporated subsidiaries for
gauging business conditions and taking corrective actions
when needed, risks such as unforeseeable changes inlegal and tax systems, a shift to a floating exchange rate
system, political instability, business fluctuations and an
outﬂow of personnel could aﬀect our business results andﬁnancial position.

Sumitomo Mitsui Banking Corporation-45,942

Foreign Companies............................................................................. 11,355,967 shares

Foreign Investors................................................................................... 53,303 shares

Domestic Corporations ............................................................................... 4,691,300 shares
Securities Companies ................................................................................. 774,952 shares
Number ofshares(thousands)

8,538
3,242
1,916
1,864
1,380
1,191
910
795
788
702

(%)

17.30
6.57
3.88
3.78
2.80
2.41
1.84
1.61
1.60
1.42

Tresury stock：2,949 shares● Number of Shareholders

total：27,695shareholders

Individuals and Other ............................................................................ 27,227 shareholders
Domestic Corporations ................................................................................ 233 shareholders
Foreign Companies................................................................................ 128 shareholders

Financial Institutions ..................................................................................45 shareholders..................................................................................34 shareholders
Foreign Investors
Securities Companies ..................................................................................27 shareholders
Tresury stock：1 shareholders

Stock Information■設備投資額 ■減価償却費

48

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 business results and financial
position.

The overseas net sales ratio of the ULVAC Group is high,with South Korea, Taiwan, China and other economies,
particularly in the Asian region, occupying larger shares.
To avoid c urre n cy exc ha n ge ris ks , tra n s a ctio n s by
ULVAC are, as a rule, denominated in yen. However, inthe context of sales to the Asian region at a time of yen
appreciation, the Group is placed at a disadvantage in its
price competitiveness relative to overseas manufacturers
in yen-denominated transactions. If ULVAC conducts an
exceptional foreign-currency-denominated transaction,
sudden exchange rate fluctuations might cause losses
in the exc hange. T he afore m e ntio ne d factor s c ould
negatively af fe ct our busine s s re sult s and financial
position.

Mizuho Bank, Ltd.
17,730-40,000

0

4：Inﬂuence of Increased Overseas Sales

Nippon Life Insurance Company

20,000-10,000
0.70■Free cash flows

33,43632,068-30,000

A n a l y s i s o f B u s i n e s s Re s u l t s■Debt-to-total assets ratio（％）■Interest coverage ratio
50

0.70

12.06

44,312

10,000
8,000

586

-5

0.8

0.72

7

2.2

0.78

3,382

1.6

43,103■Total assets turnover ■Fixed assets turnover

1
3.8

11.06

services with a high level of customer satisfaction. As
ULVAC continually provides products with leading-edge
technologies, there are numerous development elementst h at c o uld le a d to a s it u atio n in w hic h U LVAC h a s tocollect and repair products free of charge due to some
unforeseeable defect; this could af fect our businessresults and ﬁnancial position.

● Major Shareholders

0

0

10.06

■Cash flows from operating activities■Cash flows from investing activities

Fixed assets turnover（Times）

2

535,80809.06● Cash ﬂows (Millions of yen)

3

10

0

● Total assets turnover（Times）／

14.4

15

36,20841,187

09.06

55

10.06

5

09.06

A l t h o u g h i n t h e F P D i n d u s t r y ― U LVA C s p r i n c i p a l

44

08.06

20,0003：Inﬂuenceon 10,000
Pricing Competition
7

251●Cash Flows from Investing Activities 25,000
100
Net
cash used in investing activities amounted to 11,328

20

37,04014

50,000200

092,023

102,504

90,15891,853●Cash Flows from Operating Activities
Based on sustained proactive investment in research andNet cash used in operating activities amounted todevelopment, the ULVAC Group has consistently brought
assets ■Shareholdersʼ
equity■Total netsuch
8,492 million yen, reflecting positive factors
asnewratio
products to market using cutting-edge technologies.
600
125,000
50,000depreciation
and amortization,563
a decreasein accounts
However,
if35it becomes
extremely difficult to achieve the31.3 28.1
26.4
29.1
receivable,
trade,
andadecreaseininventories,
anddevelopment
that
meets
the requirements indispensable500
28
100,000
40,000negative factors such as a loss before income taxes andf o r t h e c o m m e rc i a li z a t i o n o f n e w p ro d u c t s o r s u c h400minority interests, a decrease in accounts payable,
trade,
development
21 is markedly
75,00030,000 delayed, our business results
14.8
215
300 a 240
anddecreaseand ﬁnancial position could be aﬀected adversely.
271 in advances received.

customer―demand for digital home appliances remains
robust, there is constant pressure from the customer
side to lower prices. In addition to this, new competitors
are emerging in South Korea, Taiwan and China, further
intensifying sales competition. This, combined with higher
costs caused by surging prices for raw materials andgoods purchased, could affect our business results andﬁnancial position.

▼▼o f n e w p ro d u c t s . W i t h re s p e c t to a n al y s i s d ev i c e s ,orders were received from private-sector companies inJapan and universities in the United States and Europe.
Meanwhile, orders received and sales of the mask blanks
business remained steady.
As a result, the vacuum application business saw orders
received of 37,321 million yen, an order backlog of 9,858
million yen and net sales of 36,905 million yen. Operating
proﬁt for the year amounted to 935 million yen.

46

www.ulvac.co.jp

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