ULVAC REPORT 2014
CS R & Annual Rep o rtAbout the ULVAC GroupThe ULVAC Group practices CSR by fulfilling its responsibilities to▼all stakeholders and contributing to society through the researchand development of cutting-edge technologies.

Basic Corporate Philosophy

The ULVAC Group aims to contribute to the developmentof industries and science by comprehensively utilizing its
vacuum and peripheral technologies through the mutual▼

cooperation and collaboration of the Group companies.

Management Policies■ Improvement of Customer Satisfaction ■ A Free and Open Culture■ Innovative Production Technology ■ Enhancement of Corporate Value■ Innovative Product Development

Editorial Policy

Report's Scope and Period

We have integrated the previous Annual Report and the CSR
Report into this ULVAC REPORT two years ago. This report ispublished to promote understanding of the ULVAC Group's
operating results and CSR activities among our stakeholders,
and we consider it an important communications tool.

[Scope]▼ULVAC Group

While the report covers the ULVAC Group as a whole,
any portions for which the scope differs are indicated.
[Period]

Year ended June 30, 2014 (July 1, 2013 to June 30, 2014)▼■ Published:
September 2014

(Previous Japanese edition published in September 2013;
the next edition is to be published in September 2015)■ Guidelines Referenced:
ISO26000; 2010 (Guidance on social responsibility)
first Edition

1

ULVAC REPORT 2014

Portions with information relating to periods otherthan the above are indicated.
(Disclaimer)
Figures shown in tables and graphs in this report may not add up
to the indicated total because of rounding. Some figures have beenrevised from previous years' data because the scope of reporting
was expanded or calculating methods have been changed.

▼

INDEX

About the ULVAC Group and Editorial Policy....................... 1
Corporate Profile of the ULVAC Group.................................... 3
Interview with Top Management.............................................. 5
Toward Consistent Growth......................................................... 9
CSR Activities for Fiscal 2013 and Targets for Fiscal 2014.... 11
Here & There, Near your side ULVAC's Vacuum Technology!.... 13▼

Technology

Improve the ULVAC Brand......................................................... 15
ULVAC Group's Global Intellectual Properties.................... 17
Structural Reforms and a Consistent Procurement Activity....18
ULVAC Group's Global Business Development..................20▼

Environment

Promoting Global Environmental Management andMinimizing the Environmental Impact...................................22
Environment-Friendly Products................................................23
Round-table Talk: Tanbo Project in Its Fifth Year...............24
Environmental Performance of the ULVAC Group.............27▼

Organization

Invigorate the Individuals and Organization of ULVAC via
Personnel System that Rewards Efforts and Outcomes....28
Responding to the Results of the Employee CSR
Awareness Survey.........................................................................30
Good Health Supporting Manufacturing..............................31
Occupational Safety and Health..............................................32
Local Community (Global Corporate Citizenship
Initiatives).........................................................................................34▼

Management

Corporate Governance and Compliance.............................35
Risk Management.........................................................................36
Board of Directors and Auditors.............................................37▼

FinanceFinancial Highlights.......................................................................39
Business Overview........................................................................ 41
Stock Information..........................................................................44

Introduction of Our Communications Tools
ULVAC REPORT 2014

ULVAC REPORT 2014

ULVAC REPORT 2014

[Digest][Full report] Japanese and English[110th Term Business Report]

ULVAC REPORT 2014

U LVA C R EPO RT 2014

CSR & A nnua l Repor t

CSR & Annual Report

証券コード：6728

ULVAC REPORT 2014
第 11 0 期 事 業 報 告 書2013.7.1～2014.6.30

Brochure
Brochure

ダイジェスト

010_0627058572609.indd

2

2014/09/09

17:55:51

PDF

PDF

Important ULVAC initiatives of which we want to inform all

The steps taken during fiscal 2013 (from July 1, 2013 to June 30,

The business overview for fiscal 2013 is reported in an easy-to-

stakeholders are summarized and reported in a brochure.

2014) are comprehensively summarized as PDF data to promote aunderstand manner for distribution mainly to our shareholders.

deeper understanding of ULVAC's initiatives among our stakeholders.

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

■Number of Employees: Non-consolidated 1,105
Consolidated 5,971 (As of June 30, 2014)■Business Areas: Development, manufacturing, sale and customer support
for vacuum equipment, peripheral devices, vacuum components andmaterials for the display, solar cell, semiconductor, electronic, electric,
metal, machinery, automobile, chemical, food product and medical productindustries, as well as universities and research labs, and import and exportof various equipment. Additionally, research guidance and technicaladvising on vacuum technologies in general.

■Trademark: ULVAC■Head Office: 2500 Hagisono, Chigasaki, Kanagawa■Established: August 23, 1952
■Capital: ¥20,873,042,500

OthersMaterials

FPD and PV
production
equipment

Industrial
equipment

Components

Semiconductor and Electronic
device production equipment

Vacuum equipment business‌Liquid crystal display (LCD) production

equipment
Organic LED production equipment● Inkjet printing production equipment● Roll coater (evaporation and sputtering)● ‌
Crystalline silicon solar cell production
equipment● Compound solar cell production equipment●▼

Components

Vacuum pumps● Vacuum gauges● Helium leak detectors● Process gas monitor● Spectroscopic ellipsometer● EB, RF and DC power generator● Vacuum valve● Deposition controller● Vacuum robot

▼

●

▼


‌
Semiconductor(memory, logic,
power or other semiconductors)
production equipment● LED production equipment● ‌Electronic device production
equipment●

Industrial equipment

Vacuum heat-treating furnaces● Vacuum melting furnaces● Vacuum brazing furnaces● ‌
Rare-earth magnet production
equipment● Vacuum freeze-drying equipment● High-vacuum distillation equipment● Automatic Leak Tester●

Vacuum application business▼

Materials

Sputtering target materials● ‌High-melting-point materials and productionof components● Nano metal inks●

3

Semiconductor and Electronic
device production equipment▼▼

FPD and PV production equipment●

ULVAC REPORT 2014

Others▼▼Business Segments of the ULVAC Group●

Surface analyzers●

Controllers●

Mask blanks, etc.

│ Group Outline │Number of Employees by Region (Consolidated) (As of June 30, 2014)

South Korea 578

North America 137

China 1,630

Japan 2,983
Taiwan 515

Southeast Asia 128

ULVAC GroupULVAC, Inc.
ULVAC Group Companies in Japan

Overseas ULVAC Group Companies

ULVAC TECHNO, Ltd.

■ North America■ TaiwanULVAC KYUSHU CORPORATIONULVAC Technologies,Inc.

ULVAC TAIWAN INC.

ULVAC TOHOKU, Inc.

Physical Electronics USA,Inc.

ULTRA CLEAN PRECISION TECHNOLOGIES CORP.

ULVAC KIKO, Inc.

■ Europe

ULCOAT TAIWAN,Inc.

ULVAC EQUIPMENT SALES, Inc.

ULVAC GmbHULVAC AUTOMATION TAIWAN Inc.

ULVAC CRYOGENICS INCORPORATED■ China

ULVAC SOFTWARE CREATIVE TECHNOLOGY,CO.,LTD.

ULVAC-PHI, Inc.

ULVAC (China) Holding Co., Ltd.

ULVAC Materials Taiwan,Inc.

TIGORD CORPORATIONULVAC (NINGBO) CO., Ltd.

■ South Korea

ULVAC COATING CORPORATIONULVAC (SUZHOU) CO. LTD.

ULVAC KOREA,Ltd.

NISSIN SEIGYO Co,. LTD.

ULVAC Orient (Chengdu) Co., Ltd.

Ulvac Korea Precision,Ltd.

Initium, inc.

ULVAC Automation Technology (Shanghai) Corporation

Pure Surface Technology,Ltd.

ULVAC Human Relations, Ltd.

ULVAC Tianma Electric (Jingjiang) Co., Ltd.

ULVAC CRYOGENICS KOREA INCORPORATEDSHINKU CERAMICS CO., LTD.

ULVAC Vacuum Furnace (Shenyang) Co., Ltd.

ULVAC Materials Korea,Ltd.

FINE SURFACE TECHNOLOGY CO., LTD.

ULVAC (Shanghai) Trading Co., Ltd.

UF TECH,Ltd.

Reliance Electric Ltd.

ULVAC Materials (Suzhou) CO., LTD■ Southeast Asia

SHOWA SHINKU CO., LTD.

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

ULVAC SINGAPORE PTE LTDULVAC CRYOGENICS（NINGBO）INCORPORATEDULVAC MALAYSIA SDN.BHD.

ULVAC NONFERROUS METALS (NINGBO) INCORPORATEDULVAC（THAILAND）
LTD.

ULVAC Research Center Suzhou Co., Ltd.
Luoyang Xinyou Magnesium Co., LTD
Hong Kong ULVAC Co., Ltd.
ULVAC Vacuum Furnace (Shanghai) Corporation

4

Interview with Top Management

Heading toward a new stage by shifting our focus from structural business reform to advancement into a growth phase
Promoting strategic research-and-development investments for future growth

Q1

What is your general overview of the operating circumstances and business results for the fiscal year ended June 30, 2014?
Year- over-year increases were achieved for net
sales and income
The ULVAC Group's consolidated net sales for the
fiscal year ended June 30, 2014, were ¥173.9 billion,
which was an increase of more than ¥10.0 billion
from a year earlier.
Lo o ki n g a t t h e s e g m e n t a l b rea kd ow n o f
net sales, all business segment s, that is, FPD
a n d PV p ro d u c ti o n e q u ip m e nt , s e mi co n d u c to r
a n d e l e c t ro n i c d e v i c e p ro d u c t i o n e q u i p m e n t ,components, industrial equipment and materials,
achieved year-on-year increases. Specifically, salesof semiconductor and electronic device production
equipment showed significant growth.
In terms of profitability, operating and ordinary
profits increased considerably from the previous
f i s c a l y e a r t o ¥12 . 0 b i l l i o n a n d ¥13 . 4 b i l l i o n ,respec tively. This was chiefly due to increase inn e t s a l e s a n d h i g h l y p ro f i t a b l e p roj e c t s i n t h esemiconductor and electronic device production
equipment business and the vacuum application
business including analysis devices and depositions.
The Group's recorded the highest net income of¥11.5 billion partly due to extraordinary gains of¥2.5 billion mainly from sales of subsidiaries' stocks
and real estate.
Reinforcement of the Corporate Sales & Marketing
Division produced positive effects especially in
China and Southeast Asia
Subsequent to the establishment and kick-off of a
new sales organization structure in the previous
fiscal year, we reinforced the Corporate Sales &Marketing Division's capabilities to accelerate global
sales operations during the fiscal year under review.
This reinforcement enabled the Corporate Sales &Marketing Division to bolster collaboration between

Hisaharu Obinata
President and Chief Executive Officer

1. Business Results and Forecast (unit: ¥billion)
June 2013
Ordersreceived
Balance of orders received

5

1,668
725

Net sales

1,634

Gross profit
Gross profit to net sales (%)
SG&A expenses
OperatingprofitOperating profit to net sales (%)
Ordinary
profitOrdinary profit to net sales (%)
Extraordinary gains
Extraordinary losses
Tax expenses, etc.
Net income

370
22.6%
308

ULVAC REPORT 2014

61
3.7%
63
3.8%
3
71
32
-38

June 2014
ActualChange
30
1,698
(+2%)
672
105
1,739
(+6%)
426
24.5%
307
59
120
(+96%)
6.9%
71
134(+114%)
7.7%
25
7
36
115
153

2. Shareholders' Equity and Interest-Bearing Debt (unit: ¥billion)

June 2015 Forecast
Full Year
1,700
622
1,750

5.1%
85
4.9%

50%

2,000

1,000

38.8

28.1

500

29.2

1,202
882

688

1,061

918
14.8
371

22.7
615

30%

20%

896
674

553
320

0

65

40%

■ Interest-bearing debt
■ Net interest-bearing debt
■ Shareholders' equity

33.5

1,051

Debt-to-total assets ratio
Shareholders' equity ratio

43.6

1,500

90

48.2

2,500

10%

0

June 2011, June 2012, June 2013, June 2014

│ Top Interview │ULVAC and its overseas subsidiaries in conducting
sales operations and to provide centralized control
o ve r t h e m to a l l o w m o re e f fe c t i ve a p p ro a c h e s
towa rd t h e a cq uire m e nt of o rd e rs in t h e glo b almarket. During the fiscal year under review, this led
to successful results in sales operations in China
and Southeast Asia, especially the acquisition ofa large project for FPD production equipment in
China. In response to the international expansionof clients' manufacturing operations, the Group willseek collaboration and optimization of business
operations within the Group to generate greatersynergies.

Q2

Slimmed-down assets enhanced financial soundness
T h e financial so u n d n ess of th e G ro up al so
improved significantly as we further streamlined
our assets by reducing inventories, compressing
t ra d e a cco u nt s re ceiva ble a n d sell - of f of fixe da s s e t s . A s a re su l t , t h e l eve l o f n e t i n te re s tbearing debt (interest- bearing debt minus cashon hand and in banks) decreased to ¥32.0 billion
f ro m ¥ 91. 8 b i l l i o n t w o y e a r s e a r l i e r, w h e re a sshareholders' equit y ratio improved from 14.8%
to 29.2%.

Please address the business outlook for the fiscal year ending June 30, 2015.

Profit decrease expected mainly due to an increaseof strategic R&D investments
Regarding the forecast of net sales for the fiscal
year ending June 30, 2015, sales of FPD production
equipment are expected to suffer a year- on-year
decline, as the investment in production equipment
for organic light- emit ting diode (OLED) displays
for television will likely be postponed or shrink.
However, the growth in demand for semiconductor
and electronic device production equipment willl i ke ly co n t i n u e. O ve ra l l n e t s a l e s a re t h e re fo reexpected to increase slightly from the fiscal year
ended June 30, 2014, to ¥175.0 billion.
In terms of p rofitabilit y, we fo re cast year- o n year decreases in profit figures: Operating profit isexpected to be ¥9.0 billion, ordinary profit ¥8.5
billion and net income ¥6.5 billion. This is chiefly
because we expect an increase in strategic R&D
investments for further growth, intensifying pricecompetition and no extraordinary gains.
Shifting toward a growth phase through the reinforcementof development, sales and marketing capabilities
Starting with the fiscal year ending June 30, 2015,t h e U LVA C G ro u p w i l l f o c u s o n t h e " s h i f t f ro m
structural business reforms to advancement into a
growth phase." Under this theme, we will "reinforce

3. R&D costs (unit: ¥billion)

development capabilities" as well as "reinforce sales
and marketing capabilities." At the same time, wewill "strive to improve cost competitiveness", thereby
minimizing any rise in the break-even point.
To " re i n fo rce d eve l o p m e n t c a p a b i l i t i e s ," w eselected eight important business areas in which weplan to develop new businesses for future growthover the next three to five years. The eight areas arenamely "nonvolatile memories," which is our area ofstrength; "semiconductors" available for superfine
wirin g; high - d ensit y "p acka gin g te ch n olo g y";" L E D " a n d "p o w e r s e m i c o n d u c to r s" f o r e n e r g yconservation; "automobile-related technologies,"
re l a t e d t o t h e e n h a n c e m e n t o f e n v i ro n m e n t a l
p e r f o r m a n ce a n d a u to m a te d d r i v i n g ; " f l e x i b l e
displays," which require next-generation element
technologies; and "Photo Voltaic (PV) production
equipment," an area related to renewable energies
for which medium - to long-term demand is
expected.
To "reinforce sales and marketing capabilities,"
we will further strengthen the capabilities of theCorp orate Sales & M arketing Division to ensure
successful collaboration between the sales forces of
the ULVAC Group in the countries where it operates
under the sales strategies of the Group's business
units at home and abroad.

4. Numerical Targets of the Medium-Term Management Plan (unit: ¥billion)
June 2013 June 2014 June 2015 June 2016 June 2017
Results
Results
Forecast
Forecast
Forecast

100

83
71

50

0

50

52

60

June 2011, June 2012, June 2013, June 2014, June 2015
(forecast)

Orders received

1,668

1,698

1,700

1,900

2,000

Net sales

1,634

1,739

1,750

1,900

2,000

Operating profit

61

120

90

130

160

Operating profit
to net sales (%)

3.7%

6.9%

5.1%

6.8%

8.0%

Ordinary profit

63

134

85

120

150

Net income

-38

115

65

90

110

6

Interview with Top Management

Q3

Please explain the background and details of the review of the medium-term management plan.

The current medium-term management plan wasformulated in June 2013 to "establish the system forreliable and stable earning," in line with the basic
policies of "reconstruct business model to create
values (reestablishment of a mechanism to increase
added value with vacuum technologies as the core),""reviewing unprofitable businesses" and "lowering of
the break-even sales."Fro m t h e p e rsp e c t i ve o f b u si n e s s s e g m e n t s ,t h e p l a n ' s g ro w t h s c e n a r i o s e e s t h e G ro u p' s
growth being propelled by the semiconductor andelectronic device production equipment segment,
while being continuously supported by the FPD and
PV production equipment, industrial equipment andcomponents segments.
In the plan's first year, the fiscal year ended June30, 2014, we were unable to at tain the fo recast

order receipts and net sales, whereas operating
profit, ordinary profit and net income exceeded theinitial forecast.
I n t h e f i s c a l y e a r e n d i n g J u n e 3 0 , 2015 , a n dthereafter, we will continue to follow the plan's basic
policies and business segment scenario. However,
we have decided to revise the numerical targets
to reflect 1) the planned increase in strategic R&D
investment s , 2) the move to p ostp one or shrink
investment s in p ro duc tion equip ment for O LED
displays for televisions and 3) a grim forecast of theprice competition in the years ahead, as well as toextend the plan for another year.

Q4 Could you tell us about the structure being established to strengthen the Group's globalization initiatives?
Optimization of overseas production activities andenhancement of quality assurance
The preparedness in terms of sales and marketingw a s e x p l a i n e d e a r l i e r t h ro u g h t h e m e n t i o n o f
the Corporate Sales & Marketing Division, whichm a n a g e s s a l e s a n d m a r ke t i n g a c t i v i t i e s o n a
global basis. On the production side, the Global
Pro d u c ti o n Pl a n ni n g D e p a r t m e nt wa s s et u p i nJuly 2013 to optimize the capacity and location of
production facilities based on a global view of theGroup's production activities, while ensuring better
allocation of functions and collaboration between
production facilities.
The ULVAC Group is also striving to enhance its
product quality and safety by reinforcing its quality
assurance system for the ULVAC brand on a global
basis and promoting the introduc tion of qualit yassurance and environmental management systems
to acquire the ISO9000/14001 integrated global
certification.

Enhancement of the workforce for manufacturing
on a Group-wide basis
One of the key fac tors to promote globalization
initiatives is the development of human resources.
To raise the level of engineering and managementc a p a b i l i t i e s a t p ro d u c t i o n s i t e s a n d a c h i e v e ahigher level of manufacturing at all of the Group's
global production facilities, we started the ULVAC
Global Monodzukuri (Manufacturing) Workshop in
2014. This workshop was attended by employees
engaging in production from 10 Group companies
in China and Southeast A sia to promote deeper
understanding of the Monodzukuri spirit.
Through these efforts and engineering education,
we will enhance the workforce for manufacturing
a c r o s s t h e U LVA C G r o u p , w h i l e i n t r o d u c i n g
personnel evaluation systems and other measures
to vitalize the entire ULVAC organization.

We will ensure sustainable development of our businesses based on a stable business structure
Q5

What is your opinion of ULVAC's CSR and environmental activities?

Cont ributing to environmental preser vation andenergy conservation through manufacturing activities
M any p ro du c t s create d an d sup plie d by U LVAC
address solutions to environmental- and energyre l a te d i s s u e s i n s o ci e t y. A s a m a n u f a c t u re r o f
production equipment, ULVAC provides significant
support for the advancement of the industrial world

7

ULVAC REPORT 2014

by enabling the production of low-cost and highperformance devices while continuing R&D efforts topursue new device possibilities.
R e ce n t l y, U LVAC w a s g ra n te d t h e Ke i d a n re n
(Japan B usiness Fe deratio n) Chairman's Awardj o i ntly w it h t h e N ati o n al I n s tit u te o f Ad va n ce d
Industrial Science and Technology (AIST) and Fuji

│ Top Interview │Electric Co., Ltd., for the establishment of Tsukuba
Power Electronics Constellations (TPEC), whichaims to establish mass-production technologies
for next-generation power semiconductors using
silicon carbide (SiC). A SiC power semiconductor isa key device in the energy-saving revolution and has
attracted growing expectations as a device for the
inverters used in hybrid and electric vehicles.
In a d ditio n to th e a b ove, we have d evelo p e dt h e t e c h n o l o g y to e n a b l e t h e i n t e g r a t e d m a s s
production of thin-film lithium rechargeable batteries
for the first time in the world. M oreover, we will
increase our ef forts for the manufacturing of the
production equipment for superluminescent LEDs
and organic electroluminescence (EL) lighting andi o n i m p l a n t e r, w h i c h i m p ro v e s t h e c o n v e r s i o nefficiency of solar cells. Through these efforts, wewill make continued contributions to environmental
conservation and energy saving.
Enhancement of education to promote the developmentof human resources for social contribution
What underpin ULVAC's social contribution is its
outstanding technological capabilities, which havebeen accumul ated to date as a manufac turer ofp ro d u c t i o n e q u i p m e n t . M e a nw h il e, e m p l oye e
education is increasingly important to enable theexchange of human resources for increased diversity
and to expand business opportunities globally.
Fro m su ch p e rsp e c tive, we a re p rovidin g"engineering education" for general employees tohand down ULVAC technologies. During the year
under review, we al so focused on "management
education" for employees in administrative

Q6

positions. We intend to further expand educational
opportunities, including foreign language education
for the development of global talent, to continually
produce human resources who can make valuable
social contributions.

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

We will move forward to fulfill the expectations ofstakeholders.
T h e G ro u p - w i d e e f fo r t s a t s t r u c t u ra l b u si n e s s
re f o r m s f o r t h e p a s t t w o y e a r s h a v e s t e a d i l yenhanced the earning power of ULVAC.
Unfortunately, however, we have decided not
to distrib ute divid en ds fo r the fiscal year un d er
review, as we have to continue structural businessreforms and reinforce our financial foundation toaccommodate possible changes in the businessenvironment amid uncertain market condition. We
apologize deeply to our shareholders.
The distribution of dividends for common stock
fo r th e fisc al yea r en din g Ju n e 30, 2015 ha s n ot
yet b een determined and will b e announced ona l a te r d a te, fo r w h i c h w e w o u l d l i ke to a s k t h eunderstanding of our shareholders.
While endeavoring for firm and stable income, wewill promote proactive R&D investments to advancei n t o a g ro w t h p h a s e . Ta k i n g a n y c h a n g e i n o u rbusiness environment as an opportunity to makea leap forward, we will exploit such opportunit yt o c re a t e n e w v a l u e b y m o b i l i z i n g o u r h u m a n
resources and organizational strength, as well as
our manufacturing expertise, thereby supporting
the growth and advancement of the industries andscience.
We will continue to move forward to fulfill the
expectations of stakeholders and would appreciate
your continued support and cooperation.

8

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

ESG themes addressedby the ULVAC Group

Businesses of the ULVAC Group●	Countermeasuresagainst global warming

globalization

Vacuum equipment business●	Measures to address

FPD and PV
production
equipment

Industrial
equipment

Semiconductor
and electronic
deviceproduction
equipment●	Connection withlocal communities

9

ULVAC REPORT 2014

Vacuum application business

Components

Materials

Others│ Towards Sustainable Growth │Activity themes addressedby the ULVAC Group

Technology
Technology Topics:
TSV mounting○ Improve the ULVAC brand○	Structural reforms and aconsistent procurement activity○ Group global business development○ Group global intellectual properties

Environment○	Development of environmentfriendly products○	Environmental communication
activities

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

10

CSR Activities for Fiscal 2013 and Targets for Fiscal 2014

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 and implements initiatives for solving various social
problems by using ULVAC’s technologies and human resources.
Stakeholders

Communication guidelines

Fiscal 2013 targets

Customers

With a high priority on a trusting relationshipwith customers, we engage in various efforts toenhance the quality and safety of our products.

・Review the Claim Management System (ULKES-QMS).
・Promote the introduction of the global integration certification of
ISO9000/14001.
・Review systems for quality inspection.

Suppliers

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

Shareholders
and investors

We will endeavor to ensure the timely
disclosure of business activities and financial
information to promote communication withshareholders and investors.

Reduce costs of the ULVAC Group on a consolidated basis through cost
reduction in front-end processes by involving in design reviews at thedesign stage in operating divisions.
Promote the simplification of acceptance inspection procedure via the
supplier certification system, thereby ensuring good quality.
Actively promote corporate communication.
Increase the number of analyst/investor relations activities.
・Continue the CSR awareness surveys and have opportunities for
feedback from employees to promote the CSR activities.

Employees

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

・According to the revised system for evaluation, provide trainings forevaluators to ensure the practical application of the system.
・To help enhance the work-life balance of employees, provide
education on labor management.
・According to the Health Management Regulations, ensure follow-up
measures to health checkups to reduce health risks.
・Perform mental health checkups and provide personal interviews withthose who require treatment to prevent the occurrence of mental
illness.
・Provide mental health seminars on a continuous basis to help create aworksite where employees can work with comfort and enthusiasm.

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

Develop and sell products that contribute to reducing the environmental
burden.

Environment

We will consider environmental conservationin all aspects of our business activities and willcontribute to develop a better place to live andan enriched society.

Decrease the environmental burden of our offices.
Promote active involvement in and raise awareness of environmental
activities, thereby making a social contribution.

Local
community

11

ULVAC REPORT 2014

We will perform social contribution activities
based on the practices and cultures of thecountries and regions in which we operate.

Aim to achieve 100 participants per event of the Tanbo Project, which
will be in its fifth year, to promote communication with the local
community.
Formulate a policy on social contribution activities.

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

Self-assessmentof the fiscal 2013
achievements

Fiscal 2014 targets○

・Thoroughly implement the global integration certification (Phase 1) of
ISO9000/14001.
・Cement the quality inspection that is in accordance with front loading.

Participated in design reviews by operating divisions. Made
proposals on cost reduction from the 3S perspective andachieved satisfactory outcome.
Goods purchased: 8.7%, Goods produced: 7.9%
Both at ULVAC, ULVAC TOHOKU, Inc. and ULVAC KYUSHUCORPORATION○

Participate in design reviews at the design stage in operating divisions
to reduce consolidated cost of ULVAC Group through cost reduction inpreceding process. (Goods purchased: keep at 8.0%, Goods produced:
make cost reduction proposals to each operating division.)

Ensured good quality via supplier certification system○ーOther than individual communication, held site tours and technicalseminars, which were attended by many participants.

○

Continuously disclose information related to the progress of mediumterm management plan while promoting corporate communication.

Continued the CSR awareness surveys with the target response
rate of 60%, which were answered by 61.2%, thereby achieved
the target.

◎

Revise the questionnaire items in CSR awareness surveys.

①Trainings for evaluation were implemented in July 2014 toshow specific guidelines for target formulation.
②Changed the plan and instead of holding trainings, assigned
a person in charge of labor management for appropriate
management.
③Among the employee who were diagnosed with high healthrisk, interviews and individual guidance have been carried out
in 92.2%. We achieved 92.2% compared to a target of 90%.
④As a result of mental health checkups, among the employee
who were diagnosed as necessary individual guidance,interviews etc. have been carried out in 97.5% compared to atarget of 95%.
⑤The participation rate for mental health seminars exceeded
the target of 33.3%.

①○
②△
③◎
④◎
⑤○

・Conduct company-wide hearing in preparation of the personnel
rotation and reorganization.*・Prepare training system for engineers to ensure their acquisition ofskills.
・Continue interviews and other means to respond to the employees
who were determined to require medical guidance in order to further
reduce the health risks.*
・W i t h a v i ew to r u le m a k i n g o f s t res s c h e c ku ps , p re p a re c h e c ksystem enabling early response to the mental health problem andimprovement of the workplace.*
・T h ro u g h m e nt al h ealt h s e m i na rs , e n ha n ce co m m u ni c ati o n atworkplace and raise the motivation.*ーー・Prepare common education program across the ULVAC Group.
・S h a r e a s e n s e o f a d v a n t a g e i n w o r k i n g a t U L V A C a m o n g t h eGroup employees through coordinated Group-wide philosophy in
manufacturing which binds the individual employees together.

①Achieved a zero frequency ratio of occupational accidents twoconsecutive years. Certified as the class 2 accident-free recordby the Ministry of Health, Labour and Welfare in June 2014.*②The rate of product accidents reduced by 48% from theprevious fiscal year. (Group-wide)①◎②○① Halve the number of occupational accidents in ULVAC Group
compared to the previous fiscal year.
②Keep the number of product accidents in ULVAC Group at low level
continuously from the previous fiscal year.

At ULVAC CRYOGENICS INCORPORATED, multiple operationsof type-22 and type-16 cryopumps were enabled. Type22 and type-16 can reduce the energy consumption by 45%
and 52%, respectively. At ULVAC, HELIOT900 series werereleased. By improving the accuracy of leak test, amount ofchlorofluorocarbons to be disposed along with the disposition
attributable to the malfunction of equipment due to micro
leakage can be reduced.

○

Continue to promote the development of products that contribute to
reducing the environmental burden.
Example:・Products with low energy consumption
・Products with less resource loading
・Products compatible with Restrictions of Chemical Substances in
Products

Launched energy-saving projects at ULVAC and started
activities with an aim to reduce the energy consumption by 16%
compared with the fiscal 2012.

◎

As entire ULVAC Group, reduce the energy use by 10% compared withthe fiscal 2012 in the next five years.

◎

As part of Tanbo Project, newly create Tanbo pictorial bookrepresenting the creatures in rice fields at Chigasaki.

◎

Introduce our initiatives to each Group company and promote theactivity.

Fiscal 2013 achievements
・New claim management system was introduced in October.
・Prepared for the global integration certification which will be
implemented in fiscal 2014.
・Revised the quality inspection to be in accordance with frontloading.

Number of participants by ULVAC Group (Chigasaki area) in the
Tanbo(rice field)Project, a rice planting event, for the fiscal 2013
amounted to 165.
Formulated ULVAC Group Policy on Social Contribution
Activities and priority issues in January 2014.

*These achievements or targets relate to ULVAC, Inc.,

12

e ULVAC’s
Here & There, Near your sid
Vacuum Technology!
ckaging promote
pa
d
an
)
SV
(T
a
Vi
on
ilic
h-S
ug
Thro
technologies.
the refinement of information(Center) Noriaki Tani, Deputy Manager of the Institute of Semiconductor & Electronics
Technologies, General Manager of Research Division No. 3 and No. 5(Left) Yasuhiro Morikawa, Manager, Research Office No. 1, Research Division No. 3(Right) Masahiro Matsumoto, Manager, Research Office No.2, Research Division No. 5

Fiscal 2014 is particularly important for
ULVAC in achieving the shift toward a
growth phase. For that, we will reinforce
our R&D efforts to develop next-generation
pillars of business for further growth.
Here, we present one of our important
strategic technologies—Through-SiliconVia (TSV) and 3D packaging. To address
the accelerated growth of information
volume in the era of cloud computing,this technology plays an essential rolein increasing the speed and volume of
information communications. Three
key persons who are involved in t hedevelopment of TSV packaging technology
discussed the outlook for this technology.

Vacuum, TSV and 3D Packaging
Based on its sales achievements of equipment for
wafer processes, such as sputtering equipment1
and ashing equipment,2 ULVAC started thedevelopment of low-cost TSV turnkey solutions
around 2008 and began offering them for sale in2010. (Morikawa)I n t h e 19 9 0 s , t h e m i n i a t u r i z a t i o n o f
semiconductor devices was all you needed toachieve lower costs, lower power consumption
and higher speed. With the miniaturization ofsemiconductor devices having reached a limit,
the TSV and packaging technologies havesurfaced to further improve performance. If two
or more miniaturized chips are stacked verticallyas a package using a through-silicon via (TSV), thelength of connections is shortened to increase
the velocity of communications. (Matsumoto)

Especially forsmartphones,
which have beengetting smallera n d i n crea si n gly
require less power
consumption,t h e T SV a n d
3D packaging
technologies has aconsiderable effecton improving theirperformance. In otherwords, smartphones
can be even smaller, thinner and achieve
speedier communications. (Tani)○ TSV Process Flow

○ TSV Solution

Si etching

Si etching
TSV

Ashing

SiO2 etching
AshingCleaning

SiO2 etching
Cleaning

Sputtering
Plating※1 Sputtering equipment …
is designed to deposit thin films
onto a substrate by making theions in argon plasma impact
against a target material andeje c tin g th e ato ms f ro m th etarget surface.

13

ULVAC REPORT 2014

Memory chips※2 A s hin g e q u ip m e nt … isdesigned to remove the organic
photoresist after it is used form a s k i n g by u si n g a p l a s m asource.

Logic chips

What is TSV? … TSV stands for throughsilicon via, which is an electrode thatpasses through silicon semiconductor
chips that are stacked vertically. TSVinterconnect technolog y enables top rovid e high -sp e e d co n n e c tio ns ofs i g n a l s a n d p o w e r s o u rc e s t o t h estacked chips via TSVs.

│ Feature │Lateral communication between operating divisions enables speedier development of next-generation technologies
For the developmentof the TSV and3D packaging
te chn ologies , theR&D teams at
the Institute of
Semiconductor& Electronics
Te c h n o l o g i e sshare information
with th e b usiness
operating divisions:
the Semiconductor
Equipment Divisionand the Advanced Elec tronics Equipment
Division.
In such an advanced technological area withno established industry standards and roadmaps, customer requests are constantly changing

with an expectation of a swift response.
Given the constantly changing market
situation, technological innovations and customer
needs, it is ULVAC’s strength to be able to quickly
acquire information and offer advanced vacuum
technologies to provide comprehensive support
from development to mass production of the
products customers require. (Morikawa)
Regarding smartphones, for example, ULVAC
of fers not only the TSV and 3D packaging
technologies but also other vacuum technologies
including the Micro Electro Mechanical Systems
technology in relation to thin film lithium cells,
which are expected as smaller and longer-lasting
batteries, as well as sensors and other devices.
In addition, ULVAC places a strategic emphasison the development of flexible displays, whichhave attracted considerable attention as a nextgeneration technology. (Tani)ULVAC’s TSV technology will find an extensive range of applications in society
We expec t that
the TSV packaging
technologies
will be initiallyused for highend devices suchas smartphones
and computers
and will likely findwider applications

in various electrical appliances that support
people’s lifest yles. The Internet of Things(I oT ) w il l co n n e c t t h o s e a p p l ia n ce s . We
believe that all such devices will connect tothe Internet through, for example, wearable
terminal s, 3 which are being developed by
ULVAC, to help create a better environment
for people’s lives. (Tani)※3 Wearable terminals … refer to information devices that are wearable.

○ Society where everything connects to the Internet

Cloud

Internet

14

ULVAC REPORT 2014

Improve the ULVAC Brand
Our goal is safe, confidence-inspiring products
To maintain and control the ISO 9001 certification procedures for quality management
systems as a Group, we will integrate our internal certification during the next three years.
We will deliver high-quality products around the world at our many production factories
and Group companies.
To maintain the“ULVAC quality,”we have established ULVAC brand standards and acertification system, and have a strict check system in place for the start of production andtype approval. In addition, we have a strict check system at each process of the products
manufacturing.

Quality
Policy“Customer confidence in quality of ULVAC
production”
The ULVAC group is committed to provide
the highest quality products and services to
respond to the global needs of our customers
and become their partner of choice.

ActionPolicies❶ We comply with all rules and procedures.
❷ We do not deliver any nonconforming products to thenext process.
❸ We observe delivery times leading to the next process.
❹ We commit to the production budget.

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

T h e es s e n ce o f t h e f ro nt lo a d i n g is torealize total optimization of the heterogeneous
elements in the whole life cycle ofmanufacturing such as R&D, design, production
and maintenance through the combinationo f t h es e el e m e nt s . We a re co m m it te d to
rev i ew i n g o u r p ro ce s s o f re a l i z i n g to t a l
optimization to this end.

Making Rapid Improvements Based on Quality Information
Quality control system for customer
satisfaction and confidence

Risk analysis and feedback are two fundamental
concepts of ULVAC’s qualit y management
system. Following the flow that begins at thedevelopment and design stage, we identify risks
and countermeasures to them, thereby prevent
quality issues. In line with the enhancementof front loading, we also run a stringent check

during the quality inspection at each process ofmanufacturing and prior to shipping. Throughthese activities, we aim to be timely providersof products that reflect the most up-to-datetechnology so that we can promptly support
our customers’ production activities.

Reduction of additional costs
We a re re d u cin g failu re - rel ate d cost s bypromoting front loading, which encompasses
risk analysis from the development and design

15

ULVAC REPORT 2014stage, feedback from claim information andstrengthening upstream design capability.

│ Technology │○ Quality Assurance System Concept in Relation to Development and Design Flow
Negotiation / Quotation /Order receipt
DR0
QFD

Risk control■ DR0

Input designdata

Drawing

DR1Pre-order
engineering
examination
meetingSpeciﬁcation
diﬀerence control

DR2
FMEA

Output design Manufacturing Shipping Receiving Acceptancedata
inspection
DR3

DR4

Drawing
Assembly
check Risk mitigation check

DR5

Shipping
quality inspection

measuresPost-launchingevaluation
meeting

Thorough understanding of speciﬁcations required by the customers,
QCD risks and development elements
■

DR1～3

Is input DR being conducted as speciﬁed in the DR0 control document?
Conﬁrm the QCD of design input for modules and units with high risks

DR：
Acronym of Design Review
QFD： Acronym of Quality Function Deployment, a method to transform qualitative customer
demands into quantitative parameters.
FMEA： Acronym of Failure Modes and Effects Analysis. This is a preventive process implemented
prior to the introduction of new functions to product or process change, a systematic
analysis technique for potential failure modes.
QCD： Acronym of Quality, Cost and Delivery, three fundamental conditions for manufacturing.

■ DR4

Conﬁrm that no veriﬁcation items remain unchecked■ DR5

Reﬂect on the project to utilize the proﬁt andloss and problem response record in future orders

Globalization of the ULVAC Brand
Based on a checklist, the products of the
ULVAC Group are assessed with respect to theirmodel registrations; clarification of commercial
distribution; compliance with the standards of
ULVAC trademarks: management system for
quality, environment, safety, hazardous substances,
etc.; protection of intellectual property rights;
and technology leakage preventive measures,among others. 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 andsales matrix for ULVAC Group products. Sucha strict system allows us to distribute“ULVAC
Quality”around the world, thereby supporting
our globalization.
Beginning in fiscal 2014, we will integrate
the ISO9001 certification of each ULVAC Group
company spending the next three years aiming for
the quality improvement at each Group company,
thereby delivering the high-quality products.

Product safety
Due to the various measures taken to date,
the product accident rate has been steadilydecreasing. On the other hand, importance ofdevelopment and design is increasing in order
to meet the customers’ requests regarding the
product specification. In fiscal 2014, we will

Quality inspection overseas

seek to enhance the safety of ULVAC products
by putting greater efforts into education onmachine safety for engineers and to eliminate
product accidents on a global level for all
employees engaged in manufacturing to thehandling of products.
○ Breakdown of causes for product accident

Others16%

Handing by
customers
27%

Design37%

Operation
20%

16

ULVAC REPORT 2014

ULVAC Group’s Global
Intellectual Properties
Global/Asian Strategy for ULVAC’s Intellectual Properties
T h e U LVA C G r o u p’ s b a s i c s t r a t e g y o n
intellectual properties consists of“protectionof the Group companies’ intellectual property
rights on their products”and“respect for theintellectual property rights of third parties.”Dueto increases in its ratio of overseas sales andthe number of production facilities overseas,
ULVAC has acquired more intellectual property
rights overseas. As a result, the number of theGroup’s patents registered overseas reacheda record 1,900 as of June 30, 2014. Patents
registered in Asia, particularly in South Korea,
China and Taiwan where the Group has many
production facilities and customers, haveincreased significantly, accounting for around
65% of the total patent count. The Group also
has been promoting the registration of designs
and trademarks to counter imitation products
and protect the Group’s brands.
To prevent the infringement of intellectual
property rights of third parties, we conduct
sur veys on conventional technologies
concerning the products being developed orplanned, as well as a periodic patent survey
fo r ea ch gro u p of p ro d u c t s . T h e G ro u p’s
research and development division ensures

the protec tion of the Group’s intellec tualproperty rights by initiating preparations forpatent application at the stage of experimental
production and addressing the registrationof applied patents and design rights when
the relevant produc t s are being designed
and manufactured. The Group also provides
education on intellectual property rights andraises awareness and exchanges information
through regular meetings among the Group
companies. In the days ahead, the development
and design of equipment at a place closer tothe customer side will accelerate mainly in Asia,
giving emphasis to the acquisition of intellectual
p rop er t y right s as an imp or tant means of
ensuring management resources. The ULVACGroup will increase it s ef for t s to promote
patents regarding its mainstay products withthe aim of efficient patent applications andhigh-quality patents overseas. Furthermore,
we will evaluate the relevance of patent s
wit h b usin ess p l a ns a n d sele c t ove rsea s
patent applications based on sales planningand marketing information to reinforce ourintellectual property rights.

○ Number of patents overseas (accumulated)○ Percentage of patents overseas by region

2,000

1,500

1,000

500

0
(Number) 10.06 11.06 12.06 13.06 14.06■ Other■ Southeast Asia
■ Europe■ North America

17

ULVAC REPORT 2014

■ China■ Taiwan■ South Korea■ South Korea 25% ■ North America 17%■ Taiwan 17%■ Europe 16%■ China 19%■ Other 3%■ Southeast Asia 3%

│ Technology │Structural Reforms and Consistent
Procurement Activities
Cost-Reduction Activities
In fiscal 2014, ULVAC will continue to promote the 3S, Global Production (Procurement) and
Cost-Reduction activities to reinforce the relationships of co-existence and co-prosperity
with suppliers and improve its overall profitability. In particular, we will promote crosssectional efforts among different operating divisions, including cost-reduction workshops forpractical education, to pursue the reduction of manufacturing costs.

Cost-Reduction Workshop
At a cost-reduction workshop, participants learn how to visualize manufacturing costs using themethods of cost table and cost benchmark.
Data from the workshop can be utilized by ULVAC and the ULVAC Group to examine priceestimates and manufacturing processes, thereby enabling efficient cost reductions.

What is a Cost Table?
Calculating the cost structure of each component
Various costs, including those of materials andprocessing, are calculated in detailA“measure”for precise cost evaluation
I f y o u e n t e r a p a r t ’s m a t e r i a l , e x t e r n a ldimensions and other necessary information
into the cost table, it automatically estimates
the part’s price for you, which enables theappropriate and prompt evaluation of priceestimates.
The cost table enables even inexperienced
employees to calculate reasonable costs, which
is helpful for price negotiations with suppliers.

A scene from a study meeting on cost tables

What is a Cost Benchmark?
Evaluating the prices of differently shaped
components under the same definition
A comparison of costs with differently shaped components

By plotting the price-determining properties of partson the horizontal axis and the purchase prices thereofon the vertical axis, you can ﬁnd the lowest possible price.
Purchase Price Benchmark (BM)
)
ary
im
r
Purchase price BM
p
e(
lin
M
B
Purchase priceT h e co s t b e n c h m a r k m e t h o d e n a b l e s acomparison of prices among similar parts withdifferent shapes by plotting the prices of thoseparts on the same chart.
This method enables the sampling of parts
that were purchased at relatively high prices,which clarifies a way to achieve cost reduction
for the equipment to be manufactured next.

BM (Bench Mark) Method

The purchase price should
be lowered to this point.

Targetpurchase
price
Requiredproperties

Price-determining
properties

18

ULVAC REPORT 2014

Procurement Risk -Reduction Activities
Through strict management of the supply chain of parts, the ULVAC Group engages in efforts tominimize the risk in the supply of parts to be used for particularly important products and services
in times of disaster. We will further cooperate with suppliers in sharing information to reduce
procurement risks.
Basic BCP (Business Continuity Plan) Policy for Procurement●

Through the management of the supply chainof parts, we minimize the risk in the supplyof parts to be used for particularly important
products and services in times of disaster.

●

BCP management items:- Major earthquakes and tsunami- Flooding due to river overflows and other reasons- Disasterous fires and explosions-	W ars, conflicts, political instabilit y andworsening security in source countries❶ Products and services (including public services) that serve to ensure the business continuity of customers❷ Important models in the medium-term plans of operating divisions
Determination of the products and services to be managed

2013

2014

2015

Step 1: Select the products to be managed
Step 2: Select the products to be managed
Evaluate and improve the suppliers’ systems

Response to“Conflict Minerals Issue”
The ULVAC Group has declared“the ULVACGroup Basic Procurement Policy”regarding
the observance of laws and regulations, themaintenance and promotion of fair and freecompetition, and the establishment of soundand friendly relationships with suppliers. In thecurrent term, for the purpose of establishing amore confident partnership with suppliers andfulfilling our social responsibility as a part of
supply chain, we hereby request that the newly
listed nine items below be complied including
the response to conflict minerals issue.

❶ Laws and Regulations, and Social Norms❷ Fair Transactions and Corporate Ethics❸ Respect of Human Rights and Occupational Safety and Health❹ Safety and Quality of Products and Services❺ Information Security❻ Environmental Preservation❼ Realization of Appropriate Prices and Delivery Times❽ Improvement of Technical Strengths❾ Sound and Stable Corporate Management

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

[Conflict minerals]
Conflict minerals refer to certain minerals fromthe Democratic Republic of the Congo (DRC)and surrounding countries, of which mining
and trading finance or benefit armed groups
directly or indirectly, or which are the sourceof human rights violations and/or labor issues.
The Dodd-Frank Act, which was established inJuly 2010, requires publicly traded companies in
the United States to perform due diligence withrespect to the sourcing of conflict minerals and

19

ULVAC REPORT 2014

to file and disclose annual reports relating to theuse of conflict minerals. Considering that these
initiatives regarding conflict minerals under the
Act are a social responsibility of an enterprise,ULVAC Group intends to address initiatives
toward the non-use of raw materials which aremined or exploited with unfair funding and/or illegal methods, as well as the non-use ofparts and components containing such conflictminerals.

│ Technology │ULVAC Group’s Global
Business Development
ULVAC Group’s Production Systems feature the Strength of Diversity
Centering on East A sia, the ULVAC G roup
operations there. The Group’s service offeringhas been actively expanding businesslocations in the countries where we operate
overseas to fuse the benefits of Japanese
will step up their efforts to identify and meet
MONODZUKURI and the cost advantages
local needs and work together to achieveof offshore production. In recent years, notfurther expansion of ULVAC’s vacuum business.
only Japanese but also
○ Production Systems Centered on East Asia
South Korean and Taiwanesecustomers have been placing
Fusion!
their production sites in China.
ULVAC’s production systems
Multinational cooperation is
now indispensable to AsianM O N O DZU KU R I m a rket s ,China
Russiawhich have been expanding
Korea Japan
to inclu de the Southeast
TaiwanEuropeUSA
A sian countries. A uniform
Mid Eastb u si n e s s a p p ro a c h co u l d
not fully meet the needs
MexicoIndia
o f cu s to m e rs o p e ra t i n g i n
Africahighly diverse regions such
SEA
as Southeast Asia, which will
South America
likely see further grow th inpopulation and industries. To
Oceania
accommodate to local needs
in Southeast Asia speedily andflexibly, we will build systems
Bridge!
within the region to ensure
Connect each area to supply products globally
efficient and comprehensive
Provide optimum services for the respective markets
c o n t ro l o v e r t h e G ro u p’s

Establishing the Group’s Technological Assets System throughout ULVAC GroupTo date, the development of vacuum
equipment has been conducted by the R&D
teams based at the head office in Japan.
With a growing share of ULVAC products inoverseas markets, however, our R&D systemneeds to adjust to ensure faster and more
flexible responses to local needs. Therefore,
the ULVAC Group will actively promote
R&D efforts based in overseas markets.
As for intellectual properties overseas,
the G roup will not only pursue patentapplications overseas but also create andmanage a portfolio of rights to the Group’s
products to encourage the effective useof the intellectual properties of the Group
companies. While unifying the managementof product sales, services and development
authority throughout the ULVAC Groupand securing them, we will also promote
the sharing of development information
to ensure effective R&D activities, thereby
better accommodating customer needs.

○ Image of the Group’s R&D System
Marketenvironment

ULVAC Products and Services
OverseasGroupcompanies
R&D

Information
sharing

Overseas joint
ventures R&D

Technologies
sharing

Unique products

Overseas
marketenvironment

ULVAC(Japan)R&D

Unique products
Domestic Group
companies R&D

Domestic
Cooperative
R&D

Japanesemarketenvironment

Marketenvironment

20

ULVAC REPORT 2014

│ Technology │Integrated Group Capabilities Enhance Our MONODZUKURI and Development of Human Resources
The ULVAC Group has contributed to the developmentof the vacuum business for more than 60 years since its
foundation.
Like other manufacturers operating in Japan,
ULVAC has continued making ef forts to enhance
the production technologies, high quality of supply
chain and enthusiasm for MONODZUKURI, with thecooperation of its employees and business partners. As
an attempt to hand down the experience and expertise
accumulated over 60 years to the Group’s younger
generations at home and abroad, we held a workshop
titled“ULVAC Global MONODZUKURI Academy”at
ULVAC KYUSHU CORPORATION, one of the Group’s production facilities in Japan. The seminar wasattended by 28 executive candidates from 10 Group
companies based in China and Southeast Asia. The
participants were given the opportunity for intensive
study of the production technologies and systems at
the facility and the ideas behind MONODZUKURI, while
exchanges were encouraged. Returning to their own
countries, the first-hand knowledge they learned at the
Academy will be used to improve operations at theirown facilities throughout the world. We will continue tooffer these international learning opportunities so thatthe experience and expertise accumulated within the
ULVAC Group will be effectively used for the production
activities of the Group companies not only in Japan but
also overseas including emerging nations.

Participants at the "ULVAC Global MONODZUKURI Academy"

A scene at the "ULVAC Global MONODZUKURI Academy"

V OI CE

Comments from the Workshop Participants
ULVAC (SUZHOU)
CO., LTD.

Mr. Gu,Vice President

I was greatly impressed with the highly advanced production and quality
control methods conducted at a supplier’s site, which I have not seen at
Chinese manufacturing sites. This taught me a lot. Holding discussions at theworkshop with participants from ULVAC Group companies throughout theworld, I felt ULVAC’s high level of awareness toward MONODZUKURI. Pleaselook forward to a higher level of MONODZUKURI to be achieved in China.

I was struck by the manner of Japanese ULVAC employees who wereseriously engaged in their duties, while respecting and obeying rules andfollowing schedules. I was moved by their enthusiasm more than anything. I
want to apply what I learned about production control systems to enhancethe operations at our company.

ULVAC (SUZHOU)
CO., LTD.

Ms. Li,Supervisor

21

ULVAC REPORT 2014

ULVAC Orient(Chengdu) Co., Ltd.

Mr. Pu,Senior Manager

The quality control methods, such as the why-why analysis and the FMEA, as
well as the factory tour, especially the automated processing facilities, were
impressive. I want to use what I learned at the Academy for our employee
education, combined with examples at the Academy.

ULVAC REPORT 2014

│ Environment │Tanbo Project in its fifth year near Namegaya,
Chigasaki, Kanagawa, Japan

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

▼

Environment

Promoting Global Environmental Management
and Minimizing the Environmental Impact
The ULVAC Group, under its environmental policy“Develop products that contributeto energy saving, resource saving and environmental conservation,”is emphasizing thedevelopment and production of products that maximize their environmental contribution
when used by customers. We also thoroughly manage energy consumption and waste
emissions in our business operations with an aim to minimize the environmental impact ofour business activities.
Environmental Management of the ULVAC GroupT h e U LVAC G ro u p , w h i c h o p e r a t e s i n anumber of regions including Asia, Europe,t h e U nite d States a n d Ce nt ral a n d S o uth
America, has a global produc tion systema n d i t i s n e ce s s a r y to s h a re i n fo r m a t i o namong the Group companies and implement
directions from top management speedily
and accurately. To that end, we will enhanceGroup governance through integration of
the ISO14001 certification on a global basis,w hi ch we re p rev i o usly o b t ai n e d at ea chGroup company.
T h e U LVAC G ro u p w i l l c o n t i n u o u s l y
reduce the environmental impact through its
products.

● ULVAC Group Environmental Philosophy● ULVAC Group Environmental Policy

U LVAC G ro u p t a ke s o n o n e o f m aj o rissues for ever yone around the world,w h i c h i s t o c o n s e r v e a n d p ro t e c t t h e
glo b al e nviro n m e nt. We will co nsid e renvironmental conservation in all aspectsof our business activities and willcontribute to develop a better place tolive and an enriched society.

D eve l o p p ro d u c t s w i t h a go a l to s ave
e n e r g y, re d u c e t h e u s e o f n a t u r a lresources and contribute to theconservation of our environment.
１. ULVAC Group products/Final products
２. ULVAC Group manufacturing process

22

ULVAC REPORT 2014

│ Environment │Environment-Friendly Products
ULVAC, Inc.

The HELIOT 900 Series leak detectors help containing the emissions of greenhouse gases.
Leak detectors detect leakage using heliumgas. Due to its high reliabilit y, helium leaktesting is applied to inspect an extensive rangeof p ro duc t s . For equipment that requires
refrigerant gas, including air conditioners,
freezers and water heaters, helium leak testingis indispensable.
B e cause refrigerant gas is resp o nsiblefor destruction of the ozone layer, thereby
exa ce rb atin g glo b al wa rmin g , t h e use ofchlorofluorocarbons (CFCs) as a refrigerant gas
was replaced by hydrochlorofluorocarbons(H CFC s), w hich n ow have b e e n re p l a ce dby hyd roflu o ro c a rb o ns (H FC s) w it h lessenvironmental burden. The HFC refrigerant,
which has now become mainstream, shows
almost zero ozone depletion potential (ODP),
although its global warming potential (GWP) is
still high. Therefore, in addition to the collectionof H FC s w h e n t h e releva nt p ro d u c t s a rediscarded as required by the Home Appliance

Recycling Law and the Law Concerning the
Recovery and Destruction of Fluorocarbons,measures are required to control HFC emissionsd u rin g t h e ma nu fa c t u rin g of H FC- lo a d e dproducts. Helium leak testing is used to inspect
for any leakage before such products are filledwith HFCs. Subsequently, such testing canalso serve to detect small gas leakage fromthe product into the environment until the
product is discarded. That way, our helium
leak detectors
si g n i f i c a n t l ycontribute to
the reductionof refrigerantgas emissions,w hich a re am aj o r c a u s eof global
warming.
HELIOT 901W1 helium leak detector

V OI CE

Crossing the borders of divisions to act as one development team for the best result

The HELIOT 900 Series development team members● For more details on the ULVAC Group’s environmental initiatives, visit the URL:23

ULVAC REPORT 2014

http://www.ulvac.co.jp/csr/▼

For development of the HELIOT 900 Series
helium leak detector, we aimed to attain aboost in its measuring performance throughrevisions to the analysis and exhaust systems
at the heart of the leak detector, as well as
the enhancement of the design and userfriendliness.
In all respects, including performance,
operability and design, we had to overcome
technological dif ficulties to achieve thed esi re d result . Crossin g t h e b o rd e rs ofdivisions, the team members from the different
fields—research and development, design,
manufacturing and product management—
exchanged ideas to overcome the difficulties.
The team will continue to make a unified
effort to enhance the performance of theleak detectors. To promote sales expansion,
we will not only target the Asian markets,
including Japan, but also break into the highly
competitive markets of Europe and the UnitedStates.

Round-Table
Talk

Tanbo Project Has Entered Its Fifth Year
With the cooperation of Chigasaki City, Kanagawa Prefecture, where its head office and plant are located,
ULVAC launched the Tanbo (rice field) Project in 2010 as a local contribution activity for the community.
Since 2011, we have gained the support of the Shonan Research Institute at Bunkyo University, gradually
expanding the scale of the project until it has celebrated its fifth round this year.
The Tanbo Project involves a series of activities from rice planting to harvesting, which are conductedat the rice fields held by Kazuyuki Nonaka, a farmer, in Namegaya, Chigasaki. Joined by not only ULVAC
employees but also Bunkyo University students and local citizens, the project has reached its fifth year. On
this occasion, we had a round-table talk at the rice fields about the history and future of this event.
Participants in the discussion(listed in random order)

Kazuyuki Nonaka(Agricultural adviser)

Masao Okano(General Manager, the Shonan ResearchInstitute at Bunkyo University)

Genta Hirayama(Agriculture and Marine Products Section,
Economic Department of Chigasaki City)

Miho Yamamoto(General Administration
Department, ULVAC, Inc.)

Kensuke Ida(Corporate Environment, Safety &Health Department, ULVAC, Inc.)MC

Takayuki Usumi(Senior Manager of Corporate
Communication and IR Team, Management
Planning Division, ULVAC, Inc.)“Let’s reproduce the method of rice growing in
the Edo era.”It all started manually.

Usumi: Let me start by ex tending my greatest
appreciation for the considerable support you
h ave gi ve n to t h e Ta n b o Proj e c t , w h i ch h a sentered its fifth year. First, Tanbo Project Leader
Ms. Yamamoto, could you brief us on the Tanbo
Project?
Yamamoto: This project started with two major
objectives. One was to solve the agricultural andenvironmental issues of Chigasaki City in relation
to deserted agricultural land. The other was fort h e Co m p a ny to ma ke lo c al co nt rib u ti o ns tothe community where it operates and provide
employees and their families with refreshing
opportunities. As a project leader, I support the
Tanbo Project from an overall perspective.
In its first year, the project started with only one
rice field, which has increased to four fields, witha total area of about 328 t subo, or more than
1,000 square meters, over the past five years.
The accumulated number of project participants
exceeds 170. Joined by a local sake brewer, thenumber of harvest-celebrating events has also
expanded. This year, we also started planting
sticky rice, which is a kind of rice used to makerice cakes. Nature observation at the rice fields, a
popular event of the project, has always attracted
many children from the community and employee
families.

Usumi: I am happy to hear that the events haveattracted a growing number of participants. Now,
could you tell me about your involvement with thisproject?
Hirayama: Chigasaki City has taken initiatives toaddress an increase in abandoned arable landthrough activities called the Farming/Fishery
Experience Project and Volunteering for Eliminationof Abandoned Farmland. With participation of
the city’s residents, these events have provided
opportunities to be in close contact with nature,
leading to efforts to restore farmland. Meanwhile,
to prevent the abandonment of arable land, we
have promoted“intensive use of farmland”bymatching aspiring farmers with arable landowners
who want to lease their land for farming.
The relationship of Chigasaki City with the Tanbo
Project started when we were approached by
ULVAC and introduced them to M r. Nonaka, afarm landowner, and Professor Okano at Bunkyo
Universit y. Since then, we have been involved
with the project by offering related support andinformation.
Nonaka: These rice fields had been left idle foralmost 20 years. Not being a full-time farmer,
I worried about whether I could fulfill the
responsibility as an adviser to the project whena s ke d to d o s o by Ch i ga s a ki Ci t y. H oweve r,
the involvement with the project has becomea b i g p l ea su re fo r m e. B e c a u s e I h a d a l rea d y
24

Round-Table
Talk

Tanbo Project Has Entered Its Fifth Yearrelinquished my cultivator and threshing machine
when we star ted the projec t, I decided to tr ydoing all of the rice growing operations by handas they were done in the Edo era, beginning with
Shiro-kaki (the work of preparing a rice field forplanting by flooding it and tilling the soil).
Because I was not sure even about the appropriate
amount of fertilizer, the grains of rice we harvested
were small. Since the year before last, we haveused astragalus as a fertilizer, which was provided
by Chigasaki City’s Agriculture and Marine Products
Section.

Providing an opportunity to be in contact withnature and learn the preciousness of life

Ida: Rice fields are covered with the astragalus
flowers , and many but ter flies are flying over.
Although such a
traditional sight of rice
fields makes me happy,
we see fewer and fewerof them these days.
The environment in andaround the project rice
fields has changed a lot
over the past five years.
Nonaka: The vegetation
and biota of there gi o n h ave ch a n ge ds i g n i f i c a n t l y, w i t h
in crea sin g t y p es ofcreatures. Children in
the region are allowed
to enter and play in therice fields carpeted with
MC: Takayuki Usumi, ULVAC, Inc.
flowers. I am happy to
see the smiling faces ofchildren at the nature observation event organized
by Mr. Ida.
Ida: Today’s children have few oppor tunities
to directly see and touch the creatures living in
nature, although they have seen those kept in an
aquarium or sold at a pet shop. I hope the handson experience of observing nature as it is will
help children commune with nature and learn the
preciousness of life.
The human intervention with the once idled landhas caused many other changes. There was adecrease in the number of mole crickets, whichwere often observed when we plowed a rice field
for preparing of rice planting. Cogon grass, initiallyfound in clusters, has been replaced by shorter
plants, with dragonflies and butterflies increasing
in number. I hope more and more people willobserve these changes and start thinking about
co existence with natu re. In rel atio n with th e
project, I have been nursing the idea of compiling25

ULVAC REPORT 2014

a pic ture guide to
the creatures living in
Chigasaki City, and thisyear we launched sucha project.
Nonaka: You will findma ny kin ds of birds
co m i n g to t h e f i e l d s ,inclu ding p heasant s ,b a m b o o p a r t r i d ge s ,m a l l a rd d u ck s , s p o tbilled ducks, nightherons , white herons
and blue herons.

R i c e f i e l d s m a ke a n
impression on young
generations

Mr. Masao Okano, Bunkyo University

Usumi: Many students from the Shonan campus of
Bunkyo University have participated in the Tanbo
Project. Mr. Okano, have you found any changes inthe students?
Okano: Around 20 students joined the project
in its first year, and the number had been smallerin the subsequent years before this year’s ricepl a ntin g eve nt at t ra c te d a b o ut 50 stu d e nt s .
Participation in an extracurricular activity must
address a specific purpose, and the Tanbo Projectis used as a subject of research on the revitalizationof idle farmland, social contribution activities of anenterprise or corporate social responsibility (CSR)
activities. The hands-on experience of agriculturallabor seems to ser ve the student s’ academic
studies in an effective way. Their involvement withthe project was once featured on a local radio
program. Some students made a video record of
the event.
Since its third year, the project has been joined byan activity team of child-raising mothers called theChigasaki Trust Team,
which has developeda range of ac tivities
that the students carryo ut. Wh en in co ntac twith the participating
children, the students
sometimes show
expressions not seen at
the school.
T h e serio us th em e oftheir studies aside, thestudents seem to havetheir young senses
greatly stimulated byth e natu ral b eaut y oft h e ri ce f i e l d s b efo rethem.
Kensuke Ida, ULVAC, Inc.

│ Round-table Talk │Usumi: I suppose young people tend to stay awayfrom agricultural work. Are you doing anything inparticular to invite students to participate in the
project?
Okano: We are still in the process of trial anderro r, but the p romotional p oster created by
Ms. Yamamoto helped increase the number ofparticipants, as it strongly presented the amusing
nature of the event. Recently, the firm fashion has
attracted growing attention to the extent that theterm farm girl has been coined. The experience of
direct contact with soil, being away from a busy
schedule, might prove a novel opportunity formany people.

The severe reality of doing agriculture for a living

Ida: Farming has been traditionally seen as a toughand hard job, but I want more people to casuallyexperience it anddiscover the pleasureand joy of farming.
Nonaka: I certainly
agree, but on the other
hand, it is true thatp e o p l e w h o m a ke aliving in agriculture facea severe reality. I would
l i ke t h e s t u d e n t s toknow the reality of doing
agriculture for a living,as well as the enjoyablesi d e o f i t , a n d h ow to
overcome such realities.
Right now, I am heartilye n j o y i n g t h e Ta n b o
Miho Yamamoto, ULVAC, Inc.
Project, but I don’t havea f u t u re v i ew o n w h a t
will happen to this place as I get older. With theaging population, various attempts are being madeto combat such an issue by the government and JA(Japan Agricultural Cooperatives), but no definitive
solutions have yet to surface.
Hirayama: There are measures being taken by
the Japanese government to address this issue,
but Chigasaki City, which has a relatively small
agricultural scale, needs a different approach fromthe countryside where farming is done on a large
scale. Chigasaki City will continue to promote“intensive use of farmland,”which I mentioned
earlier, to support aspiring farmers who want toexpand their scale and distribution channels.

Expectations for ULVAC in the future

Usumi: Finally, what requests and expectations do
you have for the Tanbo Project?
N o n a k a : J u s t a s a h u ge a m o u n t o f w a te r i s
required for ULVAC’s manufacturing operations,securing water has
always been a big
issu e in a gricult u re.
This also applies to thenatio nal government;i t is t ra d i t i o n a l ly s a i dthat those who control
t h e w a te r gove rn t h ecountry. I hope you willtake up activities related
to water in the future bysome means or other.
Ida: It is true that
U LVA C u s e s a l a r g eamount of water in
its manufacturing
processes. Hearing the Mr. Genta Hirayama, Chigasaki Cityd i f f i c u l t y o f s e c u ri n gwater for farming that Mr. Nonaka mentioned, I
have reaffirmed the importance of water and theneed to use it carefully for our businesses.
O k a n o : T h e go o d t h i n g a b o u t U LVAC’s C SR
activities is its excellent ability to manage projects,
from which our students can learn a lot. In addition
to continuing the Tanbo Project, I hope that ULVAC
will carry out other projects as well.
Hirayama: I am deeply grateful for the considerable
support ULVAC has provided to Chigasaki City.
T h e e nv i ro n m e n t su rro u n d i n g a g ri cu lt u re isaffected by the aging population and the shortageof successors nationwide. Chigasaki City is no
exception and expected to see fewer people doing
agriculture. Even in such an environment, there aresome corporations trying to initiate agriculturalbusiness. If ULVAC intends to enter the agriculturalbusiness, we are willing to provide tremendous
support.
Yamamoto: Internally,
I hope that the
CSR activities willat trac t greater an dbroader attention andcooperation, whichshould bring forth better
ideas and opinions. And
my dream is to promote
such CSR activities that
capitalize on the vacuum
technologies of ULVAC.
U s u m i : I h o p e su ch a
day will come soon.
Everyone, thank you forjoining us today.
Mr. Kazuyuki Nonaka

26

ULVAC REPORT 2014

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

Environmental activities of the ULVAC Group in fiscal 2013
The ULVAC Group has been promoting energy-saving
activities at each Group company in line with thecost reduction associated with its structural reforms.
With the increased sales, energy (electricity) use
also increased by 0.7% in fiscal 2013. Considering
the increase in sales, the increasing rate of energy(electricity) use was kept relatively low and as aresult, we achieved some positive outcomes of theGroup-wide energy-saving activities.
Introduction of energy- and resource-saving activities by each Group company● Collect and reuse plant effluent to reduce the use of municipalp○ Transition of CO2 emissions
CO2 emissions（t-CO2）100,000■Overseas companies of the Group ■Domestic companies of the Group

50,000June 2012

Use volume(Thousand m3)
1,600

1200001,200

CO2 emissions increased in fiscal 2013. In addition
80000
to the increase in energy use, it is believed that
this increase was due to a rise in the TEPCO CO2
40000
emission coefficients that ULVAC uses as a standard
for0calculation.
2010
On the2009
other hand, total
waste volume2011
decreased
approximately 9% compared with the previous fiscal
year. We also worked to decrease the landfillingrate which resulted in a 4.9% decrease comparedwith the standard of ULVAC Group (3% or lower).
This is at tributable to certain overseas Group
companies with high landfilling rates. In fiscal 2014,
we will promote the activity aiming to decrease thelandfilling rate at these Group companies. Also, at
the Group companies with low landfilling rates, wewill continue to work on reducing total waste volume
through converting waste to resources.
In combination with turning waste into resources
with value, we will shift waste disposal methods tothose with lower environmental burden.
T h e U LVAC G ro u p co n t i n u e s to p ro m o teenvironmental management activities with concerted
ef for t s at all G roup companies to reduce theenvironmental impact of its business activities.

CO
Gas usage

332

391
343

400
0

1,091

960

June 2012

●LPG

●LNG

188 t

CO use volume
Fuel●Heavy oil

CO2Water use volume

1,071 thousand m3

Packaging materials

925 t
ULVAC REPORT 2014

32 kL

CO2

●City gas 1,651 thousand m3

27

371 kL●Diesel oil 121 kL

616 t

729
June 2014

June 2013○ Transition of the volume of waste● Breakdown of the volume of recycled
waste converted to resources
Other 17 Plastic 72
Paper
97

Oil 2

Cardboard
boxes
116

Scrap metal 984● Breakdown of the volume
of waste
Other High concentration acid,
Food garbage
high concentration alkali
481
115
1,499
Glass, pottery waste
86
Sludge 398
Waste oil,flammable waste oil
275
Waste
plastic344

Wood
scrap 585
Waste acid,waste alkali
831

Volume ofrecycled
waste converted
to resources
1,288

Volume of waste
4,614
Unit: tons (t)OUTPUT●Kerosene

2

June 2014● Breakdown of the total waste emissions
from the ULVAC Group22

June 2013■Overseas companies of the Group ■Domestic companies of the GroupINPUT
CO useElectricity

61,186800

Material Balance (ULVAC Group)

157,808 thousand kWh

57,329○ Transition of water use volume

電力使用量■日本国内生産拠点■海外生産拠点
water■アルバック単体
by 34% (ULVACCOATING CORPORATION)（千kWh）● Turn off unnecessary air-conditioners and lighting at offices/
16000000,00000,0000
plants. (eachGroup company)00,000

CO2

1200

800

50,286032,30525,645

20,673

電力使
（千kW
1600

CO2 emissions

93,491 t-CO2 Emitted by use of electricity, gas and fuel●Total volume of waste emissions

5,902 t●Volume of recycled waste converted to resources 1,288 t CO

2

Final disposal rate 4.9%

CO2 emissions from transportation 2,025 t* The above data is based on the data from 41 Group companies in Japan and overseas.
* The volume of packaging materials is based on the data from 26 Group companies inJapan and overseas (one company is added from the previous fiscal year).
* CO2 emissions from transportation are based on the data from 4 Group companies inJapan.

400

ULVAC REPORT 2014

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

▼

Organization│ Organization │Invigorate the Individuals and Organizationof ULVAC via Personnel System that
Rewards Efforts and Outcomes.

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

Seeking an Organization that Ensures Rewarding Job Experiences—Invigorate the Individuals and Organization of ULVAC—
Through our recent business structural reforms, we
shifted direction to a personnel system whereby
employees who make great efforts are rewarded
properly. Under the rational personnel andevaluation systems, we promote the transfer ofauthority so that each employee can fulfill his/her
responsibility with passion and aspiration to improve
himself/herself, and thus we strive to invigorate
individual employees and the entire organization.
In our new evaluation system, instead ofemphasizing only business results, an attitude
to“tackle challenging issues courageously andunflinchingly”and“work as a team”are highly
encouraged. We will continue to value and nurturea corporate culture in which employees can freely
generate ideas and are no afraid of failure, becausesuch a culture is important for development-oriented

company like ULVAC.
Along with the personnel system reforms, weare striving to increase training opportunities. We
offer an extensive range of training programs toenable voluntary capacity building for all employees
to encourage the growth of each individual, whileproviding specifically targeted education programs.
We also recognize the development of nextgeneration human resources and a personnel
rotation system as essential issues for invigorating
the organization. While paying attention to thebalance between specialists and generalists, weare proactively promoting interaction among
employees, including those of the Group companies
at home and abroad, with respect for theirdiversity, to pursue the flexible management of theorganization.

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

1. Human resources who respect other individuals, trust each other and 3. Human resources who are full of aspirations to improve themselves andfulfill their responsibilities
take voluntary actions to achieve goals
2. Human resources who can see the true nature of each issue and create 4. Human resources who have a global perspective and aim to takerevolutionary technologies and projects with passion and tenacity
leadership in exploring the world28

ULVAC REPORT 2014

Round Table Discussion Meetings Where Employees Share Their Opinions with President Obinata
Since November 2013, round table discussions among
President Obinata and ULVAC employees have been held.
Partly due to the president’s personality, the gatherings
take place in a casual atmosphere where participants canmake frank remarks.
The meetings are aimed at providing opportunities 1)
to enable direct communication between the president
and employees; 2) for the president to directly tellemployees about the Company’s management philosophy,
the desirable future image of the Company and what heexpects of the employees; 3) to obtain ideas and opinionsfrom the participating employees and answer questions, ifany; and 4) to promote friendship between the participants
and help build a network of contacts. The meetings aredesigned to generate mutually satisfying effects: The
president can get employee opinions that could enhance

corporate management, and participants can get an
outcome from communicating directly with the president
that might benefit their own work.
Meetings are held at a reception room in the Chigasaki
Head Office/Plant with about 15 participants each session.
To date, these meetings have been held mainly withgeneral andmiddle manager
employees
working in the
Chigasaki area,
but plans areunder way toextend them too t h e r a re a s a s
well.
President Obinata and employees at a meeting

Internal Seminars
Since January 2013, internal seminars have been given
to all middle manager employees by inviting instructors
from outside the Company. The seminar participantslearn how to use the Balanced Scorecard (BSC) method,
through which they examine their business issues tobe tackled from four perspectives—financial, customer,

operation and human development. The seminars takeplace on Saturday when the Company is closed, witharound 30 participants each time. The next seminars areunder consideration, as we intend to continue these kindsof internal seminars.

Training for Newly Appointed Qualified Professionals
Trainings in the skills of project management have been
provided to newly appointed senior staffs/engineers.
The subject of a project is decided by each group ofparticipants so that it can be completed within a year.
The subject of the projects was open until the last
fiscal year, when it became a requirement to choose
something associated with the Company’s operations

and/or contributing to the performance of the Company,and questionnaires were introduced to help determine
the subjects. Given such subjects as new businesses
capitalizing on the Company’s technological capabilities
and measures to contribute to the performance of theCompany, these trainings have effectively raised theawareness of new senior staffs/engineers.

Overseas Internship
ULVAC has been accepting foreign students as interns.
From among such students, two interns were interviewed.
■ What is it that you were impressed in Japan?

Alexander : I am impressed by many things in Japan. First, the factthat almost every train and bus in Japan arrives and leaves exactly ontime is amazing. This is a luxury that I wish I had in Canada. Second,
the fact that Japanese cities and rural areas are both so incredibly
clean! Even though I can never find a garbage bin on the street, rarely
do I ever see any trash on the ground! Finally, the fact that there issuch a low crime rate and you can (more often than not) actually trust
people not to steal your belongings.
■ What was the thing you had the most trouble with since coming toJapan?

Akhilesh : The language barrier and the cultural differences. Being latein India isn't a big deal, but being 5 minutes before the scheduled timeis everything in Japan!

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

Alexander : Since my major in university is Business Administrationand Marketing, my experience at ULVAC has been quite productive.
Even though I am stationed in the General Affairs Department, I have
had the opportunity to learn about many different aspects of business,
especially from the marketing and communications departments.
In particular, I will make use of the interesting research, sales, andmarketing techniques . I believe that all of these experiences will
enhance my ability to perform once I begin my career in marketing.
Akhilesh : I've learnt a lot since the beginning of my internship, andlearning more about 2D AutoCAD and 3D CAD will definitely help me
a lot in the future. Also, I hope to continue following the work ethicthat I'm getting used to here in Japan.

■ What do you think of ULVAC people?

Alexander : Everyone I have met in ULVAC has been so incredibly
nice, polite, and friendly to me. It reminds me of Canada. I'm very luckythat most people here have a good sense of humour and are willingto joke around with me too. I'm very thankful to everyone for sharing
their stories with me and including me in their conversations on a daily
basis even though I can only speak a little bit of Japanese.
■ What do you think of ULVAC as a company?

Akhilesh : I'm impressed by the work ethic and the work environmentat ULVAC. I've interned abroad before and also in India, but I had
never seen such commitment and the will to go the extra mile
anywhere!

29

ULVAC REPORT 2014

Left: Alexander Pease, who comes from Canada and is assigned to the General Administration Department
Right: Akhilesh Gannavarapu, who comes from India and is assigned to the Industrial Equipment Division│ Organization │Responding to the Results of the
Employee CSR Awareness Survey
We conduc ted the Employee C SR Awareness
Survey to ascertain ULVAC employees’ level ofrecognition and awareness of C SR during theperiod February 24 - March 14, 2014.
We have conduc ted this Web - basedquestionnaire since fiscal 2012. The questionnaire
was answered by 1,344 employees (a participation
ratio of 61.2%), of which we tallied answers from
823 employees and UPIX, the ULVAC Precious
Index and Average, was calculated from the survey
results using ULVAC’s own formula. The UPIX’s
average value is 50, which was the average in thefiscal 2011 survey result. The higher the UPIX, thehigher the evaluation in CSR awareness, technology,
environment and organization.
UPIX by age showed a tendency that 2,500
the older
the employee, the higher the evaluation, which
was the same as the previous year (Fig). 2,000
We needto promote CSR ac tivities and create a bet ter
workplace by listening to younger employees
and
1,500
1,289
middle-tier employees, who will support ULVAC’s
future. Specifically, we will provide feedback
1,000about
the results of survey from the past three years to
the relevant divisions and create more concrete
500
questionnaire items with an eye toward the growthphase of ULVAC.
We intend to continue this survey, listen to
2,500
many employees’
opinions and promote ULVAC
2,155a rewarding workplace
CSR activities by creating
1,898
2,000
where employees
can work withenthusiasm.
1,500○ Fig. UPIX by age
40

1,289

43
1,000

20-24

46

48.1

500

25-29

35-39

40

40-44

■ Number of disabled employees
47.7● Employment ratio
1.89

53.2

15
665

37

601
10

0
(Persons)

168
10.06

35

3,000
2,500

2,400

2,218 2,155

2,155

1,878

1,898
1,289

15

1,148 1,1050500 (Persons)5
665 662578
0(Persons) 10.06

665
ULVAC,
non-consolidated

37

10

601
ULVAC Group
companies in Japan

South Korea
168○ Changes in the number and percentage of disabled employees(ULVAC, non-consolidated)

40
35

1.89

1.82

2.08

2.19

2.0

1.83

25
1.0

20

10

37

40

27

21

28

2.19

13.06

14.06

0.0
（％）

2.0

■June 2012
■June 2013
■June 2014

1.0
1,753
1,630
40

27

21

28

0.5

601 592 515
11.06
China

12.06
Taiwan0.0
128 （％）142 139 137
13.06 168 130
14.06
Singapore/Malaysia

North America○ Gender ratio in employees [June 2014]○ Gender ratio in management positions [June 2014]

Female 6.5%
72

Female 2.3%
7

(ULVAC, non-consolidated)(ULVAC, non-consolidated)

10.06

11.06

12.06

13.06

14.06

Total numberof employees:
1,105

Total inmanagement
positions: 310

Male 93.5%
1,033

Male 97.7%
303

0.5

5
0
(Persons)

12.06

1.5

30

15

11.06

0.5

142

0

■ Number of disabled employees ● Employment ratio

28

1.83

1.82

1,898

21

142

1.5

20

51.6

27

25

600

1,000

40

30

2,000 1,800
1,500 1,200
1,289

2.08

2.0

1.0

51.9

5

■ Number of disabled employees ● Employment ratio

2.19

1.5

20

55-59

1.89

2.08

1.83
49.3

1.82

25

50-54

142

51.4

Personnel Data of the ULVAC Group○ Number of employees of the ULVAC Group

601
168

30

45-49

0

40

55

47.0

35

1,898

60-64

52
665

46.2
0

30-34

2,155

49

0.0
（％）

30

ULVAC REPORT 2014

Supporting the Manufacturing of ULVAC
by Promoting Employees’ HealthWith the vision of“Invigorating the Individuals andOrganization of ULVAC,”the Health Promotion
Office takes the initiative in promoting employees’
health so that they can work to achieve the highest
possible productivit y, thereby supporting the
manufacturing operations of ULVAC. To realize
the vision, the Office is carrying out efforts toward
three targets: Enhancement of the Communication
between Boss and Subordinate, Enhancement of
Motivation, and Ensuring Safety and Health (Fig. 1).
With the main focus on mental health education,
the Office offers Self-Care and Line-Care educationaccording to the internal regulations called“Detailed
Regulations for Ensuring Mental Health”(Table 1).
The Self-Care Education is designed to Enhance
the Communication between Boss and Subordinate
and is given mainly by occupational health nurses toall employees. Through a group-work-based session
with a small number of participants, they learn along
three themes—“listening”and“assertion,”as factorsof good communication, and“recognition”witha focus on the tendency of ways of thinking. The
enjoyable style of the session is favorably received
by the participants.
Line-Care Education is designed to Secure Safety
and Health and Enhance Motivation, and is given
to all middle manager employees. Lectures are
given by occupation physicians on two subjects: 1)“appropriate response to employees with mental
health problem”to fulfill the duty of company’s○ Fig. 2: Survey on the satisfaction of participants
Self-Care Education (N = 525*)

Line-Care Education (N = 152*)
1.3

5.5

40.2

%

40.1
54.3

■Very satisﬁed

%

58.6

■Satisﬁed ■Other*Includes the number of participants from the Group companies○ Fig. 3: Survey on the helpfulness of the education for participants’ jobs
Self-Care Education (N = 525*)

Invigorate theIndividuals andOrganization of ULVAC
Enhance
Motivation

Secure Safety
and Health○ Table 1: Mental Health Education System
Self-Care Education

Line-Care Education

Enhance the communication
Objective between boss and subordinate

Secure safety and healthEnhance motivation

Lecturer

Occupational health nurses

Occupation physicians

TargetAll employees

All middle manager employees

Listening
Recognition
Assertion

Fulfillment of the duty of company’s
obligation of health and safety
Critical points of case management
The basics of motivation management

Subjects

obligation of health and safety; and 2)“the basics
of motivation management”to fulfill the middle
managers’ responsibility of improving the motivationof their subordinates.
Acco rd i n g to a s u r vey co m p l e te d by t h eparticipants, these educational activities are highly
accepted by many of them (Figs. 2 and 3). Almost
half of them gave the highest mark on a five-grade
evaluation, and they made favorable remarks, suchas“This education should be received by as many
people as possible so that awareness is raised
throughout the Company”and“By offering thiseducation to all middle manager employees, we canincrease liveliness throughout the Company.”We willcontinue to offer these educational opportunities tohelp“invigorate the individuals and organization of
ULVAC.”

0.7

%

42.2

%

43.4

55.9

48.8

■Very helpful■Helpful■Other*Includes the number of participants from the Group companies

ULVAC REPORT 2014

Enhance theCommunication
between Bossand Subordinate

Line-Care Education (N = 152*)

9.0

31

○ Fig. 1: Vision and Targets of the Health Promotion Office

A scene from the educational session│ Organization │Occupational Safety and HealthAmong the ULVAC Group,“Safety First”is positioned as the fundamental principle of business
operations, and as such we endeavor to secure safety in products and services for our customers
and ensure a lively working environment where employees can work in good physical and mental
health. These will be accomplished by operating our Occupational Safety and Health Management
System (OSHMS) with a focus on risk assessment.

1. ULVAC’s Safety and Health Initiatives —To ensure the safety and health of our customers and employees—
To e n su re t h e s a fet y a n d go o d h ealt h o f
it s customers and employees , the U LVAC
Group regularly holds meetings of the Global
S a fe t y C o m m i t te e , w h i c h a re j o i n e d byrepresentatives from the Group companies todetermine the Group policies on occupationalsafety and health and ensure that they areevenly implemented, thereby promoting unified
safety and health efforts of ULVAC on a Groupwide basis. Each Group company operates the

OSHMS system, which involves management
review by the p resid ent o r the direc to r incharge of safet y and health ac tivities andrisk assessment by each employee to ensurecompany-wide involvement in safety and healthmanagement efforts from the top management
to onsite workers. As a result of these efforts,
the number of occupational accidents at the
ULVAC Group has been declining year by year.

○ ULVAC Group Safety Management System
Global Safety Committee

Companies
in JapanCompaniesin South Korea

ULVAC CRYOGENICS KOREA INCORPORATED:
Employees chant about safety measures

Companies
in Taiwan

Companies
in China

Companiesin Southeast AsiaULVAC TAIWAN INC.:
Employees chant about safety measures

Companies in Europe
and the United States

ULVAC KOREA, Ltd.:
Education on safety and health

2. Aiming at Zero Occupational Accidents
The number of occupational accidents for
the ULVAC Group has been decreasing year
by year since fiscal 2009. The frequency ratio
thereof in fiscal 2013 was down to 43% of thelevel in fiscal 2009. As these figures show, thesafety environment of the entire ULVAC Grouphas been getting better each year. Not yet
content with that result, we launched the 5S
initiatives—Sorting, Setting-in-Order, Shining,Standardizing and Sustaining the Discipline—
last year on a Group-wide basis to reconfirm
the basics of safety and health management.
Through the 5S initiatives, we will detect andeliminate even the slightest risk to achieving an
ideal environment for the safety and health of
all ULVAC employees.

○ Frequency ratio of occupational accidents throughout the ULVAC Group

This graph indicates the frequency ratio of occupational accidents in each year
surveyed relative to the number in fiscal 2009 (June 2010), which is indexed as
1.00. The frequency ratio of occupational accidents in fiscal 2013 (June 2014)
has decreased 57% from that in fiscal 2009.

1.20
1.00

Japan
Group as a whole
Taiwan
North America
1.00

China
South Korea
Southeast Asia

0.98

0.80
0.59

0.60

0.53

0.43

0.40
0.20
0.00

10.6

11.6

12.6

13.6

14.6

32

ULVAC REPORT 2014

3. Fire Prevention, Disaster Prevention and Evacuation Drills
The Great East Japan Earthquake and therecent large-scale earthquake in the Yunnan
Prov i n ce o f Chi na , etc . have p ro m o te d ag ro w i n g s e n t i m e n t o f re c o n f i r m i n g t h eimportance of regional disaster prevention
across the globe. The ULVAC Group companies
not only perform basic drills to ensure security,
evacuation, initial fire extinction, etc., but also

conduct disaster prevention drills that best
meet the regional needs of their environments.
ULVAC’s Chigasaki Plant has an agreement with
Chigasaki City to open its site to neighboring
citize n s i n c a s e o f d is a s te rs t h at re q u i reevacuation. That way, we contribute to regional
disaster prevention.

ULVAC (China) Holding Co., Ltd.:
Drill on the use of fire extinguishers

ULVAC-PHI, Inc.:
Joint drill with neighboring factories

TIGORD CORPORATION:
Spill drill (to control a spill of chemicals)

ULVAC KOREA, Ltd.:
Drill on the use of fire hydrants

ULVAC COATING CORPORATION:
Drill on wearing an air respirator

ULVAC KYUSHU CORPORATION:
Drill on emergency life-saving methods

4. Traffic Safety Initiatives
Recently, there has been growing awarenessa b o u t t ra f f i c s a fe t y, p a r t ly b e c a u s e t h e
p e nalties fo r d ru n k d rivi n g have b e co m es eve re r t h ro u g h o u t t h e wo rl d . Wit h t h e
co o p e rati o n o f lo c al p o l i ce s t ati o n s a n d
traffic safety associations, each ULVAC GroupULVAC TAIWAN INC.:
A test on motorcycle brakes

33

ULVAC REPORT 2014

company offers traffic safety seminars tailoredto the region’s traffic situations and according
to the frequency and purpose of using vehicles.
Through these efforts, they seek to ensure that
employees learn and obey the region’s traffic
rules and enhance their traffic manners.

ULVAC KIKO, Inc.:
Traffic safety awareness raising campaign

ULVAC Inc.:
Traffic safety education given by a police officer│ Organization │Global Corporate Citizenship Initiatives
The ULVAC Group has long been involved in a wide
range of social contribution activities around theworld. In 2013,
We set out a basic policy and priority subjects
for social contribution activities in order to thegrowing awareness of the importance of corporatesocial contributions. In line with the policy, we willcontinue to contribute to regional and international
communities by effectively using the technologies andhuman resources of the ULVAC Group to solve various
social issues.

○ Priority subjects

Local communities

The Environment

Education/

Education support

Basic Policy for Social Contribution Activities
Based on it s corporate philosophy ofc o n t r i b u t i n g t o t h e g ro w t h o f i n d u s t r yand science with innovative, cut ting- edge
technologies , the U LVAC G roup p rovides
distinctive technological innovations globallyand implements initiatives for solving various
social problems by using ULVAC’s technologies
and human resources.

Family factory tour

Number of social contribution activities
conducted by the ULVAC Group in fiscal 2013

Beach cleanup activity

Education/education support: ･･･････････2
Local communities: ････････････････････ 26
The Environment: ･ ････････････････････ 25
Total: ･････････････････････････････････ 53

Factory tour by local elementary school children

Activity Examples
South Korea ULVAC GroupThe ULVAC Group in South Korea engages invarious social contribution activities.
For example, a volunteer group, SEPAS, helda“Kimchi Sharing”event in December 2013, in
which kimchi pickles of 600 Chinese cabbages
were made for elderly people living alone andchildren with no family or relatives in Anseong,
Gyeonggi Province.
ULVAC KYUSHU CORPORATION
Le d by U LVAC Ka goshima In d ustrial Pa rk,
i n w h i ch U LVAC KYUSH U CO R P O R AT I O N
i s l o c a te d , t h e“ U LVAC Vo l u n te e r D ay ”
took place in May 2014, during volunteers
cleaned windows and air conditioner filters at
Yokokawa Ryokufuen, an intensive care home
for the elderly, as well as removed weeds andtrimmed trees there, while promoting friendshipwith the residents.

34

ULVAC REPORT 2014

Corporate Governance
The ULVAC Group regards corporate governance as one of the most important managerial issues tofulfill its corporate responsibility toward society and shareholders. We place importance on the promptand efficient execution of business operations, while securing the fairness, neutrality and transparencyof corporate management. Therefore, we introduced the executive officer system on July 1, 2012 toseparate the decision-making and business monitoring functions from the business executing function.

ULVAC's Management Structure
For making decisions on particularly
imp o r tant managerial issu es , U LVAC has
the Board of Direc tors , which consist s of
7 directors, including 2 external directors,
and meets as required in addition to regularmonthly meetings. For monitoring managerial
decisions and business execution, ULVAC
has the Board of Corporate Auditors, which
consists of 4 corporate auditors, including 2
external auditors.
■ ULVAC Management Structure

Operational Structure
ULVAC has the Board of Standing Directors
and Auditors to supplement the decisions
m a d e b y t h e B o a rd o f D i re c to rs , f u r t h e r
enabling the prompt and efficient execution ofbusiness operations. Meetings of the Board ofStanding Directors and Auditors are held twicea month, and additional ad hoc meetings
are held as required. The Board of Standing
D i re c to rs a n d Au d i to rs h a s 14 m e m b e r s
consisting of standing directors and executive
officers.
As of June 30, 2014

General Meeting of Shareholders

Appointment

Appointment

Appointment

Board of Corporate Auditors

Board of Directors

2 Corporate Auditors

Audit

2 External Corporate Auditors

5 Directors

2 External Directors

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

Collaboration
Independent Auditors

ReportAccounting Audit

President and CEO
Board of Standing Directors and Auditors

Collaboration

Group Council of Presidents

Collaboration

Internal Auditing Division

Executive Oﬃcers
Internal Audit

All Divisions
Group Companies

Compliance
To introduce systems for full compliance with laws and regulations, the ULVAC Group has systematicallyestablished Compliance Regulations and related rules. In accordance with these regulations and rules,
the ULVAC Group has also established operational procedures for the Compliance Committee and theCompliance Violation Reporting System and has been working to cement a spirit of compliance across thecompany.

Establishment of a Corporate Code of Conduct
ULVAC has established a Corporate Code of
Conduct consisting of 18 items that describe thebehavioral standards expected of employees.
After describing the details, we give employees a
35

ULVAC REPORT 2014

booklet that describes the content of this code.
T h e b o o kl e t h e l p s e m p l o y e e s t o a c t i ncompliance with the law as a representativeof our business.

│ Management │ アルバックグループのCSRマネジメント │Compliance with Laws and Regulations via the Whistleblowing System
U LVAC ha s d evelo p e d a Whistleblowin g
department serve as members of the
Sy s t e m t o m i n i m i z e t h e e f f e c t s o f a n yCompliance Committee to ensure prudent
v i o l a t i o n s o f l a w s a n d re g u l a t i o n s . T h ee xa m i n a t i o n w h il e a s su ri n g t h e fa i rn e s scontact point for the Whistleblowing System
of internal investigations. Each member isis the Internal Auditing Office that serves as
required to maintain strict confidentiality, andthe secretariat of the Compliance Committee,
to operate the system so that reporters andthe internal compliance investigation division.
investigators are not treated detrimentally.
To facilitate the use of the Whistleblowing
In this manger, internal investigations are
System, the independence of the of fice's
carefully conducted. Numerous interviews area c ti v iti es is e nsu re d , a n d a n o ny m o usheld with both internal and external parties,
i n f o r m a t i o n i s a cce p te d . M o re o v e r, t h e
and at torneys at tend any cases requiring
Presid e nt a n d ge n e ral ma na ge rs of ea chtheir expertise.
Dealing with Acts of Violation
I f , a s t h e re s u l t o f a n i n v e s t i g a t i o n , t h eCompliance Commit tee finds that l aws
and internal regulations are being violated,
a c t i o n i s q u i c kl y t a ke n t o p u t a s t o p t o
the act causing the violation. Penalties are
imposed on those involved in the violation,

and adequate penalties are imposed in thecase of serious violations after examinationby the Disciplinary Committee. In addition,
the fundamental causes that brought about
the violation are also studied to formulate
effective measures for preventing recurrence.

Risk Management
The ULVAC Group has developed an organization that facilitates prompt and appropriate action 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 toachieve even greater corporate value.

ULVAC Risk Management System
ULVAC has classified a wide range of risks,and has set up departments responsible foreach of them. Each department functions as
an information center that works with related
departments to identify and evaluate all specificrisks. In addition, the responsible departments
constantly collect risk information, respond
appropriately to risks and detect issues. For
risk information deemed to be important in
the evaluation process, we continually collectinformation to enable prompt responses toemergencies. A Risk Management Committee,
chaired by the President and comprised of thedepartments responsible for the risks, has also
been established to verify the risk management
system. As the supervising organization for risk
management, the Committee meets twice ayear to set out basic policies and improve themanagement and operation.

company assumes the position of Chief
Risk Officer and shares risk information withrelated departments. Important information
is promptly conveyed from the Presidentof each group company to the President of
ULVAC, Inc.
■ Risk Management System
ULVAC Group companies

ULVAC, Inc.
Chief Risk Oﬃcer= President and CEO

Chief Risk Oﬃcer= President and CEO

Risk Management Committee(Controls entire business risks)

Risk Control Risk Control Risk Control
Oﬃce

Oﬃce

Oﬃce

Reporting and instruction
for improvement

Creating a Risk Management System
The ULVAC Group believes that expanding
the risk management system is a criticalbusiness task. Thus, we have established the
ULVAC Risk Management Policy to ensurethat there are common rules across the
ULVAC Group. The President of each group

Risk Management
Committee

Risk Control Risk Control
Oﬃce

Oﬃce

Risk Control
Oﬃce

・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.

36

ULVAC REPORT 2014

Bo a r d o f Di r e c t ors an d A udi t ors■ Directors

Hisaharu Obinata

President and Chief Executive Officer

Akinori Bo

Mitsuru Motoyoshi

Masasuke Matsudai

Hideyuki Odagi

Akira Mihayashi

Syuzo Ikeda

Director and Senior Executive Officer

Director and Executive Officer

Director and Managing Executive Officer

External Director■ Auditors

Hironobu Machidori
Auditor37

ULVAC REPORT 2014

Seiichi Takahashi
AuditorDirector and Managing Executive Officer

External Director

│ Management │ アルバックグループのCSRマネジメント │■ Executive Officers

Shizuo Nakamura

Setsuo Iwashita

Hiroyuki Hirano

Takao Nakamura

Dr. Kazuya Saito

Dr. Paik Choong Ryul

Akira Umeda

Ryou Matsumoto

Senshu Asada

Kazumi Ohtsuka

Managing Executive Officer

Executive Officer

Executive Officer

External Auditor

Managing Executive Officer

Executive Officer

Executive Officer

Executive Officer

Executive Officer

External Auditor

38

ULVAC REPORT 2014

Financial Highlights
Millions of yen (except per share amounts)

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

FOR THE YEAR DATA

2010.06

2011.06

2012.06

2013.06

2014.06

2014.06

Orders received

221,705

235,932

152,221

166,778

169,808

1,676,288

Net sales

221,804

232,040

196,804

163,351

173,878

171,639

Operating income (loss)

4,809

1,850

(6,384)

6,115

11,996

118,421

Income (loss) before income taxes

4,558(9,192)(33,704)(565)

15,137

149,427

Net income (loss)

2,138(8,706)(49,984)(3,807)

11,538113,899

Capital expenditures

11,087

17,827

12,719

6,761

6,217

61,372

Depreciation

11,94910,717

9,096

7,967

7,421

73,258R&D costs

8,005

8,255

7,088

4,989

5,213

51,461

Total assets

313,784

313,616

249,651

243,289

230,791

2,278,292

Net assets/Shareholders’ equity

102,504

92,023

41,18759,436

72,238713,110

7,169

7,878

6,981

6,579

5,971

YEAR-END DATA

Number of employees(Yen)(U.S. dollars)

PER SHARE DATA
Net assets

1,992.06

1,787.51

751.00806.381,040.23

10,289―Basic46.60(176.43)(1,012.94)(87.79)223.182,203―Diluted

42.65

－

－

－

165.6

1,635

Cash dividends

21.00

－

－

－

－

－

Net income (loss)(%)

OTHER INFORMATION
Net income / Average total assets (ROA)

0.7

－

－

－

4.9

4.9

Net income / Average shareholders’ equity (ROE)

2.3

－

－

－

18.8

18.8

Shareholders’ equity ratio

31.3

28.1

14.8

22.7

29.2

29.2

U.S. dollar amounts have been converted from yen, for convenience only, using the approximate exchange rate on June 30, 2014, which was U.S. $1 = ¥101.30.

Disclaimer regarding forward-looking statements

Forward-looking statements of the company in this report are based on information available at the time these documents wereprepared. ULVAC’s customers in the flat-panel display (FPD), solar cells, semiconductor, and electronic parts industries face thechallenge of the rapid pace of technological advances and fierce competition. Consequently, actual earnings may vary
substantially from the projections included in this report due to a number of factors that could cause, directly or indirectly,
performance to fluctuate. The factors that could cause results to differ materially from the statements herein include the world
economy; fluctuations in the exchange rate; market conditions for flat-panel displays, semiconductors, and electric devices; andtrends in capital investments.

39

ULVAC REPORT 2014

50,000

10.06

11.06

12.06

13.06

0 0

14.06

■ Net sales (Millions of yen)

35

41,18725,00050,000

7

11.06

12.06

13.06

12.06

13.06

14.06

7

-10,000
10,000-20,000
50,000 50,000

13.06
14.06

0
0

09.06
0
0
10.06

10.06

11.06

50,000
0

9,096
9.096

12.06

232,040

43,10334,735

43,103

196,804

34,735
173,878

35,808-10,876-8,492 -11,328-14,833

150,000

100,000

50,000-19,820

11.06
12.06
13.06
14.06
-45,942
10.06
11.06
11.06
12.06 12.06
13.06 13.06
14.0614.06
10.06
11.06
12.06
13.06

10.06

26.4

0
14.06

-14,051

4,000-10,000

13.06

10.06
11.06
12.06
13.06
14.06
10.06
11.06
12.06
13.06
14.06
11.06
12.06
13.06
14.06

-10,876

25,000-20,000
2,000-30,000-40,000
0

35

31.3
44,31228.1
2833,43620,00075,00010,000
6,000

0.7

2,896

-14,051

125,000
50,00010,00040,000100,000

12,71912,719251

0.74

17,730■純資産 ■自己資本比率■営業 CF ■投資 CF ■差引 CF

6,217
6,217
7,421
7,421

17,827
17,8270.70

33,436200,000■ R&D costs (Millions of yen)

1.9

6,761
6,761
7,967
7,967

100

0.72
5,000
5,000

10,717
10,717200

11,087
11,087
11,94911,949271
10,00010,000-40,000
0
10.06

30,0008,000
2.0■ Europe, others■ Other Asia
■ China■ South Korea■ Taiwan■ Japan

17,7302,896-14,83321

14.8-8,492 -11,328

14

41,187
5,213

14.06
13.06
13.06

563

215

14.06

-30,000
0-31,8910

3
20,00020,000500

1150,000
150,000
30,00020,00044,312

10,000

0.7

12.06

11.06
12.06
13.06
10.06
11.06
12.06
11.06
12.06

1.9

13.06

250,000

4,989

11.06

■総資産回転率 ■固定資産回転率■減価償却費■設備投資額600■Capital
expenditures■Depreciation

300

30,00020,000100,000 0
100,000■ Capital expenditures/Depreciation (Millions of yen)

15,00015,000
1.9

12.06
14.06
14.06

92,023

10.06
09.06
10.06

13.06
13.06

102,504000

250,000200,000
200,000
40,00040,000

0
10.06

11.06

12.06
12.06

250,000
250,000■営業 CF ■投資 CF ■差引 CF
50,000

14

0
09.06

10.06
11.06
11.06

163,351

169,808

41,1870.74

0.70■ Europe, others■ Other 28
Asia■ China■ South Korea■ Taiwan21■ Japan

14.8 1.9

166,778

152,221
0.72

10.06
10.06

7,088

92,023

2.0

1.9

0

■ Net sales by region (Millions of yen)35

50,000100,000

400

10,00050,00050,00000

28.1

235,932
102,504

221,705
90,1581.9■Others■その他■Materials■材料■一般産業用装置■Industrial equipment■コンポーネント■Components■半導体及び電子部品製造装置■Semiconductor and electronic■FPD
及び
PV 製造装置
deviceproduction
equipment■FPD and PV production equipment

20,000221,804■純資産■自己資本比率
300,000
250,000■総資産回転率 ■固定資産回転率
125,000
31.3
26.4
3
200,000

50,000100,000
100,000

36,208

11.06

10.06

■ Orders received (Millions of yen)1
25,00075,00030,000

8,005

09.06

150,000
75,0002
150,000

150,000
150,00000

225,000
100,000

40,00035,808173,878

21

14.8

14

10.06

14.06
14.06

50,00028

100,000
50,000

0

13.06
13.06

200,000
200,000

163,351
92,02390,158102,504
196,804

28.1

36,20831.3

26.4

150,000
75,000

12.06
12.06

250,000
250,000

232,040

221,804

100,000

11.06
11.06

■ Net sales by business segment (Millions of yen)

250,000■純資産 ■自己資本比率

200,000

10.06
10.06

90,1588,255

0

125,000│ Finance │ Financial Highlights │50,00050,0007-19,820-31,891
00
09.06-45,942

10.06
10.06

11.06

10.06
11.06

12.06

11.06

12.06

13.06
12.06

14.06
13.06

13.06
14.06

10,000■売上総利益率■売上営業利益率■減価償却費■設備投資額■Capital expenditures■Depreciation
20,00020,00019.4■総資産回転率 ■固定資産回転率

40■営

ULVAC REPORT 2014

Analysis of Business Results□ Business results for the current fiscal year
During the fiscal year ended June 30, 2014, the Japanese
economy continued a gradual recover y as seen in the
improvement of corporate earnings and employment
conditions backed by the effects of fiscal and monetaryp olicies o f the Japanese government , a s well a s thecorrection of the yen appreciation. In the United States,
the gradual economic recovery has been solidifying, chiefly
led by private demand including the strong personal
consumption and signs of pickup in capital investment
and housing starts. In Europe, although unemployment
rate remained high, it was on a downward trend to show
the signs of recovery. The Chinese economy continued
stable growth, as seen in the steady growth of personal
consumption, but its pace has slowed down.
R e g ardin g t he marke t env iro nm en t surroundin g t he
ULVAC Group, in the flat panel display (FPD) industry, thestagnant TV market led to cautious moves toward capital
expenditures related to large LCD TVs at the beginningof the year under review. In the second half, however, themovement resumed, especially in China. Strong capital
expenditures were seen for small to medium-sized LCDs formobile devices, such as smartphones and tablet PCs.
In the semiconductor market, the growing demand formobil e de v ice s and s er v er s l e d t o f a v orabl e c apit alexpenditures in mobile DRAMs and NAND flash memories.
In the automobile market, strong sales of eco-friendly carsand others brought about steady capital expenditures in
automobile parts, including car electronics products.
In term of pricing, we faced the sustained requests for pricereduction from customers and severe price competition
with other manufacturers of production equipment.
In these conditions, the ULVAC Group has pursued thedevelopment of businesses in line with the medium-term
management plan established last year.
As a result, regarding the consolidated performance for the
fiscal year ended June 30, 2014, orders received increased
by 3,030 million yen, or 1.8% year on year, to 169,808
million yen, and net sales advanced by 10,527 million yen,or 6.4%, to 173,878 million yen. For consolidated profit
and loss, operating profit rose by 5,880 million yen, or
96.2%, to 11,996 million yen, ordinary profit soared by 7,119
million yen, or 113.6%, to 13,384 million yen. As a result, net
income amounted to 11,538 million yen compared with a
net loss of 3,807 million yen recorded for the previous fiscal
year.

■ Net sales by business segment（Millions of yen）

■ Net sales by region（Millions of yen）

Vacuum Application
Business
34,159(19.6%)

VacuumEquipment Business
139,719(80.4%)

Others19,953(11.5%)
Material
14,206(8.2%)
Industrial equipment
24,337(14.0%)
Components
24,187(13.9%)

41

ULVAC REPORT 2014

total
173,878

FPD・PV
production
equipment
62,325(35.8%)

Semiconductor andelectronic device
production equipment
28,869(16.6%)「Japan」
74,270（42.7%）

Other Asia
4,532
（2.6%）
Europe, others
9,749（5.6%）
China
43,160（24.8%）

total
173,878

South Korea
29,169（16.8%）「Overseas」
99,608（57.3%）

Taiwan12,998（7.5%）

│ Finance │ Financial Highlights │Vacuum Equipment Business

The operating results of the vacuum equipment business by market segment are as follows:■FPD production equipment and PV production equipment
In the FPD - rel ated market segment, orders received
declined from the previous year, although orders received
for production equipment for small to medium-sized LCDs
for Japan and South Korea and production equipment forlarge-sized LCDs for Taiwan and China contributed to theresult. Meanwhile, net sales increased owing to favorable
sales of production equipment for small to medium-sized
LCDs for Japan, China and South Korea, and large-sized
displays and organic electroluminescence (EL) production
equipment for China.

■Semiconductor and electronic device production equipment
Both orders received and net sales achieved year- onyear increases, chiefly due to the good business resultsof sputtering equipment and native oxide film removing
equipment for mobile DRAMs and NAND flash memories

in th e s e mico ndu c to r- rel ate d market se g m e nt , an dsputtering equipment for high-performance devices, suchas power semiconductors and mobile devices, in theelectronic device-related market segment.

■Components■ Industrial equipment

I n t h e c o m p o n e n t- re l a t e d m a r ke t s e g m e n t , o rd e r s
re c e i v e d d e c l i n e d y e a r o n y e a r d u e t o t h e s l u g g i s hmoves in the second half. However, net sales increased
from the previous year, partly due to the active capital
expenditures related to semiconductors, electronic parts
and automobiles.

In the industrial equipment-related market segment, bothorders received and net sales increased, primarily due tothe good performance of vacuum heat treatment furnaces
for automobile parts and high-performance magnets,
helium leak test systems and medical-use vacuum freeze
drying equipment.

Vacuum Application Business

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

100,000
100,000

100,000
100,000

50,00050,00050,00050,000assets ■Shareholders’equity ratio■Total net■純資産■自己資本比率

251
251

235
235

100
100
0
0

10.06
10.06

11.06
11.06

12.06
12.06

13.06
13.06

■売上総利益率 ■売上営業利益率■売上営業利益率■売上総利益率
25
25
20
20
15
15

18.3
18.3

22.6
22.6

19.4
19.4
14.4
14.4

50,00050000
25,000
25000
0
0

14.06
14.06

72,23872,238

215
215

14.8
14.8
59,43659,436200
200

75,000
75000

332
332

22.7
22.7

41,187
41,187

300
300

29.2
29.2

28.1
28.1
92,02392,023100,000
100000

400
400

31.3
31.3
102,504
102,504

500
500

10.06 11.06
11.06 12.06
12.06 13.06
13.06 14.06
14.06
10.06

50,000
50000

28
28

40,000
40000

21
21

30,000
30000

14
14

20,00020000

7
710,000
10000

0
0

0
0

40000
40000
1.9
1.9

2.0
2.0

1.9
1.9

1.8
1.8

10.06
10.06

11.06
11.06

12.06
12.06

13.06
13.06

14.06
14.06

50000 44,312
50000
44,312

3
3

2
2

35
35

■営業 CFCF ■投資
■投資 CFCF ■差引■差引 CFCF■営業■総資産回転率 ■固定資産回転率■固定資産回転率■総資産回転率
24.5
24.5■ SG&A expenses (Millions of yen）

30,65130,651125,000
125000■-------■-------2011-2012
2011-2012■-------■-------■-------■-------■-------■-------■-------■-------■-------■-------■-------■-------■-------■--------

30,84730,847

600
600

563
563

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

08.06 09.06 10.06 11.06 12.06

08.06 09.06 10.06 11.06 12.06■ Total net
assets (Millions of yen）／
Shareholders’equity ratio (%)

34,73534,7350008.06 09.06 10.06 11.06 12.06

08.06 09.06 10.06 11.06 12.06■ Debt ratio（％）

43,103
43,10300250,000
250,000

The mask blanks business remained steady, supported
2008-20102008-2010
200,000 for smartphones and tablet
by favorable markets■-------- PCs.
200,000■-------■-------The analysis devices business performed well,■-------centering■-------■-------150,000
150,000■-------on those for private-sector
companies in Japan.
■--------

35,80835,80875,00075,000223,825
223,825

241,212241,212152,221
152,221235,932
235,932

172,212172,212221,705
221,705

293,110
293,110

Although orders received of the material- rel ated
200,000
s225,000e g m e n t d e c l i n e d y e a r o n y e a r c h i e f l200,000
y due to the
225,000
res t ru c t u ri n g o f u n p ro f i t a b le b u si n es s es , n et s a les
150,000
150,000
increased slightly from the previous fiscal year,
centering
150,000
150,000
on sputtering target materials.

232,040
232,040

250,000
250,000

221,804
221,804

300,000
300,000

196,804
196,804■ Materials

2.0
2.0

30000
30000
20000
20000
10000

33,43633,436
17,73017,73022,35722,35732,21332,21329,19029,19017,851
17,85142

ULVAC REPORT 2014

□ Analysis of Financial Position□ Business and Other Risks

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

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

Total assets decreased by 12,499 million yen compared with theend of the previous fiscal year. This decrease was attributable todecreases of 13,185 million yen in notes and accounts receivable,
trade, and 9,575 million yen in inventories, which were partly
offset by an increase of 13,067 million yen in cash on hand inbanks.

1 Fluctuations in the Markets for FPDs,
Semiconductors and Electronic Parts

The ULVAC Group has grown by developing proprietary
technologies for vacuum equipment used in the manufacturing
process of FPDs, semiconductors and electronic components,
and by marketing such devices, which has allowed us to build
market shares in these fields. These products account for
about 50% of our consolidated net sales and have become themainstay of the Group. However, any large reduction in capital
expenditures by manufacturers of FPDs, semiconductors andelectronic parts, our corporate customers, or any deteriorationin the financial conditions of our corporate customers could
affect our business results and financial position.

●Liabilities

Total liabilities decreased by 25,301 million yen compared withthe end of the previous fiscal year, chiefly owing to decreasesof 13,508 million yen in short-term borrowings, 4,087 million yen
in advances received, 2,680 million yen in provision for loss oncontract and 2,994 million yen in long-term debt.

●Net assets

2 Influence of Research and Development

Total net assets increased by 12,802 million yen compared withthe end of the previous fiscal year. This increase was primarily
at tributable to an increase of 11,476 million yen in retained
earnings.

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

2 Cash flows●Cash flows from operating activities

232,040

150,000
100,000

08.06 09.06 10.06 11.06
12.06
08.06 Overseas
09.06 10.06 11.06
12.06
4 Influenceof Increased
Sales

251

235

25000

100
0

10.06

11.06

12.06

13.06

0

14.06

10.06

11.06

12.06 13.06 14.06■ Gross profit to net sales（％）／
Operating profit to net sales（％）■ Total assets turnover（Times）／
Fixed assets turnover（Times）■Gross proﬁt to net sales ■Operating proﬁt to net sales■Total assets turnover ■Fixed assets turnover

25
20

22.6
18.3

0

3

2.2

1.9

2.0

1.9

1.8

2.0

10.06

11.06

12.06

13.06

14.06

ULVAC ■借入金依存度
REPORT 2014 ■インスタント・カバレッジ
50
43
48

0

13.06

14.06

■Free cash ﬂows

33,436

30000
20000

0.74

0.70

0.66

0.73

11.06

12.06

13.06

-10,876

10.06■設備投資額 ■減価償却費
25,00017,851-4,506-10000-2000014.06

32,21329,1902,896-8,492-14,833-3000010.06

22,357

17,730

0
0.70

0.8
-3.2

12.06

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

10000
1

11.06

■ Cash flows (Millions of yen)

40000

6.9
3.7

5

10.06

50000 44,312

2

14.4

10

-5

24.5

19.4

15

43

50000

30,651

215

30,847

200

75000
332

41,187300

T h e ove rs ea s n et s ales rat i o o f t h e U LVAC G ro u p is h i g h ,w i t h S o u t h Ko re a , Ta i w a n , C h i n a a n d o t h e r e c o n o m i e s ,particularly in the Asian region, occupying larger shares. To
avoid currency
exchange risks, transactions by ULVAC are, as35
50000
a rule, denominated in yen. However, in the context of sales
29.2
to the Asian 28
region at a 40000
time of yen appreciation, the Group is
22.7
placedat a disadvantage in its price competitiveness relative
21
30000
in yen-denominated transactions.
14.8to overseas manufacturers
I f U LVA C c o n d u c t s a n e x c e p t i o n a l f o r e i g n - c u r r e n c y 14
20000
denominatedtransaction,
sudden exchange rate fluctuations
might cause losses in the exchange. The aforementioned
7
10000
fa c to r s co u ld n e ga t i ve ly a f fe c t o u r b u s i n e s s re s u l t s a n dfinancial position.
00

92,023400

102,504

Net cash used in financing activities amounted to 16,881 million
yen, primarily arising from a decrease in short-term borrowings
and a decrease in long-term debt.
■純資産 ■自己資本比率
As a result, consolidated
cash and cash equivalents were 57,012
600
563
125000
million yen at the end of the current fiscal year, up 12,808 31.3
million28.1
500
yen from the end of the previous fiscal year.
10000034,73509.06from10.06 11.06
12.06●Cash 08.06
flows
financing
activities■-------■-------■--------

043,103035,808072,238152,221●Cash flows from investing activities

Net cash used in investing activities amounted to 3,023 million
75,000yen,
chiefly due to the payments for acquisition of tangible and50,000intangible fixed assets.

2008-2010

200,000
Although in the FPD
industry―ULVAC’s principal■-------customer■-------- there―demand for digital home appliances remains robust,■-------150,000
is constant pressure
from the customer side to lower■--------prices.
In addition, new competitors are emerging in South■--------Korea,
2011-2012
Taiwan and China,
further intensifying sales competition.
100,000■-------These factors, combined with higher costs caused■-------by surging■-------prices for raw materials
and
goods
purchased,
could
affect our
50,000■-------business results and financial position.
196,804

221,804

223,825

241,212

235,932

250,000

3 Influence on Pricing Competition

59,436172,212150,000

221,705

293,110N e t c a s h p ro v i d e d b y o p e ra t in g a c t i v i t i e s a m o u n t e d t o
32,213 million yen, reflecting positive factors such as income
before income t a xes and minorit y interest s,
depreciation
250,000
300,000
and amortization, a decrease in accounts receivable, trade, adecrease in inventories and an increase in accounts
200,000 payable,
225,000
trade, as well as negative factors such as a decrease in advances
received and a decrease in provision for loss on contract.

10,00011.06-3,023-11,328-19,820

12.06

13.06

14.06

│ Finance │ Financial Highlights │5 Influence of Global Business Development

To secure market share in China, a prospective future growthmarket, the Group has proactively advanced into China andis pursuing business initiatives through locally incorporated
subsidiaries. Although arrangements have been put into place
at locally incorporated subsidiaries for gauging businessconditions and taking corrective actions when needed, risks
such as various restrictions and/or changes in tax/exchange
rate systems due to unforeseeable changes in legal systems,
political instability, business fluctuations and an outflow of
personnel could affect our business results and financial
position.

9 Litigation-Related Risk

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

10 Other Risks

6 Influence of Quality Assurance Efforts

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

7 Influence of Intellectual Property Rights● Debt-to-total assets ratio（％）Interest coverage ratio（Times）

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

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

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

Stock Information (As of June 30, 2014)

30

32

34

3

1

10
0
-10

10.06

11.06

4

39

10

-4
12.06

13.06

14.06

Individuals and Other 	������������������������������������������������������������������������������������������������������� 15,323 shareholders

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

Foreign Companies

Common stock....................49,355,938

Common stock............................15,758

	������������������������������������������������������������������������������������������������������������� 175 shareholders

Domestic Corporations 	������������������������������������������������������������������������������������������������������������� 158 shareholders
Financial Institutions 	����������������������������������������������������������������������������������������������������������������44 shareholders
Securities Companies 	����������������������������������������������������������������������������������������������������������������33 shareholders
Foreign Investors	����������������������������������������������������������������������������������������������������������������24 shareholders

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

Shareholder’s nameTAIYO FUND, L.P.
Nippon Life Insurance Company
Mizuho Bank, Ltd.
Sumitomo Mitsui Banking Corporation
TAIYO HANEI FUND, L. P.
Japan Trustee Services Bank, Ltd.(Trust account)
The Master Trust Bank of Japan, Ltd.(Trust account)
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Association of Employee Shareholders of ULVAC

Tresury stock：1 shareholders

Number of Shares Held (Common Stock)

Major Shareholders (Common Stock)

Inabata & Co., Ltd.

44

Common stock................. 100,000,000

Class A classified stock............... 1,500□ Total number of shareholders

48

40

Number of Shareholders (Common Stock) total：15,758 shareholders

Class B classified stock.............37,500□ Total number of stocks issued

50

20

8 Impact on Financing□ Total number of stocks authorized■Debt-to-total assets ratio（％） ■Interest coverage ratio

Number ofshares(thousands)

(%)

8,242

16.7

1,916

3.88

3,242
1,864
1,154
1,117

6.57
3.78
2.34
2.26

984

1.99

904

1.83

910
795

1.84

Foreign Companies

total：49,355,938 shares	������������������������������������������������������������������������������������������������������������ 19,880486 shares

Financial Institutions 	����������������������������������������������������������������������������������������������������������� 13,948,520 shares
Individuals and Other 	����������������������������������������������������������������������������������������������������������� 10,215,017 shares
Domestic Corporations 	������������������������������������������������������������������������������������������������������������� 4,447,126 shares
Securities Companies 	����������������������������������������������������������������������������������������������������������������� 824,864 shares
Foreign Investors	������������������������������������������������������������������������������������������������������������������� 36,903 shares
Tresury stock：3,022 shares

1.61

Note: Stock ownership ratio is calculated by the number of treasury stocks (3,022 stocks)

44

www.ulvac.co.jp

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