ULVAC Group CSR Report 2011

ULVAC GroupCSR Report

2011

About the CoverOur cover features photos of children of ULVAC employees in Russia,
Germany, Malaysia, and Taiwan under the theme of “Cheer up, ULVAC!”ULVAC, Inc.
Inquiries:
Corporate Communication & IR Team,Management Planning Department, ULVAC, Inc.
2500 Hagisono, Chigasaki, Kanagawa 253-8543, Japan
TEL: +81-467-89-2033 FAX: +81-467-82-2250
www.ulvac.co.jp

ULVAC Group CSR
The ULVAC Group practices CSR by fulfilling our responsibilities to all our stakeholders and contributing

Index

to society through the research and development of cutting-edge technologies.

ULVAC Group CSR .........................................................................01
Corporate Profile of ULVAC, Inc......................................................03
Business Performance of the ULVAC Group.....................................04
Message from Top Management ....................................................05

Basic Management Philosophy

ULVAC Group’s Response to the Great East Japan Earthquake........07

ULVAC Group pursues its contribution to the growth ofindustry and science through providing both support andcooperation in order to make the best use of vacuum andrelated technologies throughout the world.
Management Policy

Improvement of
Customer Satisfaction

Innovative Production
Technology

Free and Open Culture

Increased Corporate
Value

Origin of Company Name

PeriodEditorial Policy

Published

This report is published to promote understanding of the
ULVAC Group’s CSR activities among our stakeholders, and we
consider it an important communications tool.
We believe that our greatest mission is ‘contributing to thedevelopment of science and industry with our proprietary
cutting-edge technologies.’ Based on this belief, this report outlines
our initiatives in technology, the environment, and organization,
which form a key foundation for our CSR activities. Moreover, as
we are further globalizing and innovating, the report widely covers
some overseas ULVAC Group companies.

ULVAC Group CSR Report 2011

ULVAC Group CSR

Scope

ULVAC has turned its constantpursuit of unique technologies
into an engine of growth.
As we seek to expand further,
we are synthesizing our Grouptechnologies and carrying out
business activities globally.

ULVAC Group
While the report covers the ULVAC Group as awhole, any portions for which the scope differs areindicated.
Year ended June 2011 (July 1, 2010 to June 30,
2011)
Portions with information relating to periods otherthan the above are indicated.

Japanese edition: September 2011English edition: January 2012
(Previous Japanese edition published September 2010;next edition to be published in September 2012.)

Guidelines Referenced
Japan’s Ministry of the Environment:
Environmental Reporting Guidelines 2007
Japan’s Ministry of the Environment:
Environmental Performance Indicators Guideline for
Organizations 2002
<Disclaimers>
Figures shown in tables and graphs in this report may not add up to theindicated total because of rounding. Some figures have been revised fromprevious years’ data because the scope of reporting was expanded or
calculating methods have been changed.

Organic EL is Important for the Next Generation

We respond to social needs with ourcutting-edge technologies ........................ 09
Power Semiconductor Devices that Minimize Power Loss
Saving energy by producing “Production” ..................... 11
Converting Unused Energy to Future Energy

Compact and portable power generation systems thatuse low-temperature heat sources ...................................... 13

Unique ProductDevelopment

Report’s Scope and Period‘ULVAC’ is a combination of ‘UL’ from ‘ultimate’ and‘VAC’ from ‘vacuum,’ signifying that we pursue the‘Ultimate in Vacuum Technology.’
Seeking to achieve a dramatic advance, we will further
develop the ULVAC brand by pursuing the development of
new technologies that complement vacuum technology.

Technology
y
g
o
l
o
n
h
Tec

Improve the ULVAC Brand.............................................................. 15
Building Good Relationships with Suppliers..................................... 17

t
n
e
m
n
o
r
i
v
n
E

Environment

ULVAC uses its unique technologies
for the benefit of the global
environment.
By continuing to develop theseunique technologies, we willfurther contribute to environmental
sustainability.

n
o
i
t
a
z
i
Organ

The ULVAC Group Promotes Reduction of Environmental Impact with
Proprietary Cutting-Edge Technologies .............. 19
Tackling Global Warming at Sea

Participation in a battery-powered boat
project ........................................................... 21

Construction of a New, Environmentally Friendly Cleaning Plant...... 23
Environmental Data of the ULVAC Group........................................ 24
Environmental Topics ..................................................................... 25
Chemical Substance Management .................................................. 26

Organization

ULVAC is tireless in its pursuit of
cutting-edge technology andunderstand that it is people that
support this pursuit.
We are crafting a system that
responds to the changing times,
defends that which is worthy ofholding on to, and fosters an
optimal climate that aligns ULVACGroup growth with personal talentrealization.

Innovative Development Requires an Open and
Dynamic Organization .................................................................... 27
A Workplace for Diverse Human Resources ..................................... 29
Supporting Physical and Mental Health........................................... 30
Occupational Safety and Health...................................................... 31
Global Corporate Citizenship Initiatives........................................... 33
IR Communications ........................................................................ 35

Corporate Governance Compliance/Risk Management.................... 37

Net sales by business segment (Millions of yen)

Net sales by region (Millions of yen)

Vacuum applications
business
41,999 (18.1%)

Europe, Americas,
and others

Vacuum equipment
business

190,041 (81.9%)

OthersMaterials

40,00002.06

ULVAC Group CSR Report 2011

Corporate Profile of ULVAC, Inc.

162,437

232,040
160,231221,804
149,273

154,223

147,417

223,825

241,212

09.06

11.06

10.06

Non-consolidated

Consolidated

Millions of yen

Non-consolidated

2,000−2,000−10,000

07.06

08.06

2,103

0

0
−5,000

2,138

4,000

3,393

6,000

09.06

10.06

−4,000−6,000−8,000

11.06

07.06

08.06

Status of Responsible Investment (RI)
FTSE4Good Global Index
ULVAC was selected for five consecutive years for inclusion in the FTSE4Good Global
Index, which is a Responsible Investment (RI) index established by the FTSE Group* thatcovers businesses from around the world.
* FTSE Group is an enterprise owned by The Financial Times and London Stock Exchange.

09.06

10.06

-7,5285,000

TaiwanULVAC TAIWAN INC.
ULTRA CLEAN PRECISION TECHNOLOGIESCORP.
ULVAC SOFTWARE CREATIVE TECHNOLOGY,
Co., Ltd.
ULVAC Materials Taiwan, Inc.
ULVAC AUTOMATION TAIWAN Inc.
ULVAC Research Center TAIWAN, Inc.
ULCOAT TAIWAN, INC.
MUE Materials Taiwan Co., Ltd.
South Korea
ULVAC KOREA, Ltd.
Ulvac Korea Precision, Ltd.
Pure Surface Technology, Ltd.
ULVAC CRYOGENICS KOREA INCORPORATEDUF TECH, Ltd.
ULVAC Research Center KOREA, Ltd.
ULVAC Materials Korea, Ltd.
Southeast AsiaULVAC SINGAPORE PTE LTDULVAC MALAYSIA SDN. BHD.
ULVAC (THAILAND) LTD.

08.06

811

10,00007.06-8,706

North America
ULVAC Technologies, Inc.
Physical Electronics USA, Inc.
EuropeULVAC G.m.b.H.
OOO ULVACChina
ULVAC (China) Holding Co., Ltd.
ULVAC (NINGBO) Co., Ltd.
ULVAC (SUZHOU) Co., Ltd.
ULVAC Orient (Chengdu) Co., Ltd.
ULVAC Automation Technology (Shanghai) Corporation
ULVAC Tianma Electric (Jing Jiang) Co., Ltd.
ULVAC Vacuum Furnace (Shenyang) Co., Ltd.
ULVAC (Shanghai) Co., Ltd.
ULVAC CRYOGENICS (NINGBO) INCORPORATEDULVAC (Shanghai) Trading Co., Ltd.
ULVAC NONFERROUS METALS (NINGBO) CO., LTD.
ULVAC Materials (Suzhou) Co., Ltd.
ULVAC Opto-electronics Thinfilm Technology(Shenzhen) Co., Ltd.
ULVAC Research Center Suzhou Co., Ltd.
Luoyang Xinyou Magnesium Co., Ltd.
Hong Kong ULVAC Co., Ltd.

Non-consolidated

8,000

-780

Overseas ULVAC Group Companies(13.4%)(59.8%)Net income for the term

764

ULVAC Group Companies in JapanULVAC TECHNO, Ltd.
ULVAC KYUSHU CORPORATIONULVAC TOHOKU, Inc.
ULVAC CORPORATE CENTER Ltd.
ULVAC-RIKO, Inc
ULVAC KIKO, Inc.
Reliance Electric Limited
ULVAC EQUIPMENT SALES, Inc.
ULVAC CRYOGENICS INCORPORATEDULVAC-PHI, Inc.
ULVAC COATING CORPORATIONSHOWA SHINKU CO., LTD.
SANKO ULVAC Co., Ltd.
Sigma-Technos Co., Ltd.
RAS Co., Ltd.
TIGOLD Co., Ltd.
Nisshin Seigyo
Initium, Inc.
ULVAC ENGINEERING, Inc.
ULVAC HUMAN RELATIONS, Ltd.
ULVAC Elder, Ltd.
SHINKU CERAMICS, Ltd.
FINE SURFACE TECHNOLOGY CO., LTD.

06.06

20,00015,000ULVAC, Inc.

05.06

Consolidated

Millions of yen

9,081

ULVAC Group

04.06

Operating income

4,848

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

03.06

16,625ULVAC, Inc.
ULVAC KIKO, Inc.
ULVAC CRYOGENICS INCORPORATEDULVAC CRYOGENICS KOREA INCORPORATEDULVAC (NINGBO) Co., Ltd.
ULVAC Orient (Chengdu) Co., Ltd.
ULVAC Vacuum Furnace (Shenyang) Co., Ltd.

138,697

3,393

ent
quipm

Taiwan30,994

3,610

eVacuums

212,454

160,000
120,000

ses
ines
bus

(18.6%)

Overseas240,000

80,000ULVAC-RIKO, Inc
ULVAC-PHI, Inc.

43,254

1,594

tion
s bu
sines
se

ULVAC, Inc.

(40.2%)

232,040

Consolidated

200,000

Components andgeneral industry equipment(19.6%)

7,335

lica

Net SalesJapan

93,343

Total

Millions of yen-5,640a pp

South Korea

139,740Vacuum

PV production
equipment

1,850

Surface analysis
devicePV production
equipment

93,653 (40.4%)

196,843

Vacuum technologies
Equipment control
solution technologies Surface
analysis
Equipment control
technologies
solutions

27,051 (11.7%)-1,149Cutting-edge Cutting-edge material
technologies
materials

China

Semiconductor andelectronic device
production equipment
33,486 (14.4%)

110,977

Coating
services
Electronic device
production technologies

Components(3.8%)

45,397

16,266 (7.0%)

157,851ULVAC, Inc.
ULVAC Materials
Korea, Ltd.
ULVAC Materials(Suzhou) Co., Ltd.

ULVAC, Inc.
ULVAC (SUZHOU) Co., Ltd.
Semiconductor andelectronic device
production equipment
ULVAC, Inc.
Sigma-Technos Co., Ltd.
FPD production ULVAC Opto-electronics
Electronic device
production equipment equipment
Thinfilm Technology
technologies(Shenzhen) Co., Ltd

Industrial
equipment
19,586 (8.4%)

85,716

Customer support
business

232,040

127,472

ULVAC COATING CORPORATIONULCOAT TAIWAN, INC.
TIGOLD Co., Ltd.

20,033 (8.6%)

126,129

Business Domains of the ULVAC GroupULVAC SINGAPORE PTE LTDULVAC MALAYSIA SDN.BHD.
Pure Surface Technology,Ltd.
ULTRA CLEAN PRECISIONTECHNOLOGIES CORP.

90,378ULVAC TECHNO, Ltd.
ULVAC Technologies, Inc.
ULVAC KOREA, Ltd.

Total

8,869

(4.4%)

FPD production
equipment

21,966 (9.5%)

Other Asia

10,182

159,272

1,912 (7,878 including consolidated subsidiaries)
Development, manufacturing, sale, and customer support for vacuum equipment,
peripheral devices, vacuum components, and materials for the display, solar cell,
semiconductor, electronic, electric, metal, machinery, automobile, chemical, food product,
and medical product industries, as well as universities and research labs, and import andexport of various equipment.
Additionally, research guidance and technical advising on vacuum technology in general.

4,809

Established
Capital

Number of Employees
Business Areas

ULVAC, Inc.
ULVAC, Inc.
2500 Hagisono, Chigasaki, Kanagawa
253-8543, Japan
August 23, 1952
20,873,042,500 yen

3,483

Name
Trademark
Head OfficeBusiness Performance of the ULVAC Group239,151

Corporate Profile of ULVAC, Inc.

11.06

Message from Top Management

The ULVAC Group contributes to the developmentof science and industry with its proprietary
cutting-edge technologies. We believe that fulfilling
this mission is the best way for the ULVAC Group to
benefit society.

Looking Back on the Great East
Japan Earthquake

Toward the Development of a
Sustainable SocietyFirst of all, I would like to express my heartfelt sympathy for
those affected by the March 11 Great East Japan Earthquake andpray for the fastest possible recovery of the disaster-stricken
areas.
This earthquake has once again underscored the importanceof our customer support system. We aim to provide the mosteffective disaster recovery support through ULVAC’s advanced
technologies, which are designed to realize a better world.
As stated in our basic corporate philosophy, the ULVAC Groupc ompanies cooperate and work together to comprehensively
use the vacuum and peripheral technologies, aiming tocontribute to the growth in industries and science. Our groupremains united in our resolve to create a strong company thatcan be trusted by all stakeholders.

Recognizing that the conservation of the environment is
one of the highest priority challenges facing humanity, the
ULVAC Group has committed itself to conserving the Earth’s
natural environment and is making contributions to ensure
environmentally sustainable growth and development forsociety across all business activities. Through our daily activities,
we are working based on our environmental philosophy toward
the realization of a sustainable society in the future. In
particular, the nuclear power plant accident resulting from theearthquake has raised awareness of the need to reduce the useof nuclear power around the world, thereby drawing global
attention to technologies that allow for the saving, creation,and storage of energy. Our various products provide technologies,
such as photovoltaic power generation systems, secondary
batteries, LEDs, organic electroluminescent devices, and power
semiconductors. In order to promote the safe and environmentallyfriendly, efficient use of energy, we will continue to contributeto society through our cutting-edge technologies.
To this end, the ULVAC Group will expand its businessglobally, including in India and the South American countries,
while at the same time enhancing its production systems in
Asia. In 2012, ULVAC will celebrate its 60th anniversary. Overthe past 60 years, we have become a firm with about 60 groupcompanies in the world. We will continue to practice ULVAC’s
open and dynamic style of generating ideas, our corporate
spirit which is our heritage as a company that started out as aventure enterprise, while also respecting the lifestyles andcultures of different countries and regions. Through our efforts
to cater to the needs of our customers and local communities,
we will create a corporate group capable of providing valuable
services to a wide range of stakeholders.

* The effects of the earthquake on the ULVAC Group and our
response to the disaster are described on pages 7 and 8 of thisCSR Report.

We will promote
the developmentof the most advanced,
environmentally friendly
technologies worldwide.
Dr. Kyuzo Nakamura, Chairman

ULVAC Group CSR Report 2011

Message from Top Management

Hidenori Suwa, President and CEO

Effects of planned power outages and ULVAC’s countermeasures

Special Report

ULVAC Group’s Response to theGreat East Japan Earthquake
We would like to express our heartfelt sympathy to those affected by the Great East Japan Earthquake.
At 2:46 p.m. on March 11, a magnitude 9.0 earthquake, the largest earthquake ever recorded in Japan,
occurred off the Pacific coast of eastern Japan and caused enormous tsunami waves that devastated thecoastal areas.
This Special Report details the damage to ULVAC Group companies resulting from the earthquake as wellas our activities during and after the disaster.

On the day after the earthquake, under the instructions of
the Chairman and the President, ULVAC examined the order ofpriority as to which equipment was to be put back into operation
first. We adjusted the operation of plant utilities in accordance

Topicswith the power outage schedule. We also implemented
staggered commuting from March 15 and operated some of ourfacilities at night.

ULVAC’s power outage strategy featured in a TV program forinternational audiences as well as a newspaper
ULVAC was featured as a company working to avoid plant closures during the planned power outages after theearthquake in the March 29 “NHK World” TV program as well as in the Nikkei newspaper.
Immediately after the earthquake, pessimistic views regarding Japan’s manufacturing industry spread widely aroundthe world. However, this TV program provided an opportunity to inform the world that Japanese manufacturers weretaking every possible measure to continue their business operations.

Damage to ULVAC Group companies
Most of the buildings comprising the ULVAC Group companies’ offices and factories suffered noserious damage. The employees of ULVAC Group companies were all safe and sound save for several
persons who suffered minor injuries.
ULVAC’s Tsukuba Institute for Super Materials, where the walls and columns were damaged by
the earthquake, is already back to normal operation.
A collapsed column in Building B at the
Tsukuba Institute for Super Materials

Damage to the facilities of ULVAC Tohoku Inc.
ULVAC Tohoku Inc.’s head office plant, which is located in
the Hachinohe North-Interchange Industrial Complex, suffered
only minor damage. However, the company’s Plant 2, locatednear the coast, suffered serious losses due to damage caused by

Support for affected areas

the tsunami to products in storage as well as to devices that werebeing manufactured. We assessed the damage to products andother ULVAC Tohoku plant facilities. We acted quickly tominimize inconvenience to our customers.

ULVAC Tohoku Inc.’s business continuity activities from immediately
after the earthquake until the restoration of Plant 2
3.11 Occurrence of the earthquake

3.18 Restoration work on Plant 2 started

Information on the damage to ULVAC’s offices and factories was
distributed via the ULVAC Group Risk Network*s Information was collected on the damage causedby the tsunami to devices awaiting shipment.
s Information was collected on the damages All employees gathered in front of the logistics center to prepare for evacuation.
s The safety of all employees was confirmed by a quick roll call.
s Employees whose homes were still reachable were allowed to return homes An emergency task force was established and private power generators were
* ULVAC Group Risk Network:A networked system designed to distribute information

caused by the tsunami to the facilities on thepremises as well as the devices that werebeing manufactured.
our highest priority toward restoration,
Major As
we worked to create the space required forpoints demolition and sorting debris.

3.12 Information collection

3.25 Restoration of damaged equipment

put into operation in order to secure the minimum necessary power.

to the presidents, executives, and managers of all ULVAC Group companies

ULVAC’s President Suwa issued instructions to collect information
about the areas affected by the earthquake and organized an emergency
meeting attended by members of domestic ULVAC Group companies.
s Managers collected information about the damage to buildings andequipment on the premises.

3.14 Employees return to work
The first shipment of devices after the earthquake was made after
performing quality testing with the cooperation of ULVAC.
s Restoration work started on the premisess Information collected on the damage to Plant 2
Broken equipment: Repaired, replaced, or
Major discardedIntact equipment: Fully used,
and reinforced
points maintained/managed,
Equipment newly required: Built, modified,or newly provisioned.

3.18 Provision of employee transportations Due to difficulties in obtaining gasoline,

the company started commuter bus services(until March 26).
In view of the need to maintain the
Major workforce required for plant operation,
points the company used four buses to provide
commuter services for employees.

ULVAC Group CSR Report 2011s We started carrying out the damaged equipment.
s We started the demolition, sorting, and cleaningof damaged equipment.
New criteria
We established new judgment criteria
Major beyond those of the existing ISO standards
points and immediately implemented these criteria.
(Establishment of criteria for seawater
infiltration and measurement of the salt level)

3.26 Shipment of undamaged devicess Devices were transported to the Port of Yokohama for shipment.

The company’s policy was modified on March 15 to allow for the useof land transportation; transportation routes were studied carefully prior
to shipment.
Major In order to avoid inconveniencing our customers, we needed topoints deliver our products as soon as possible.

3.30 Restorations Plant 2 started operation.
Major
pointsUnder our policy of avoiding closing plants
even for a day, with the support of ourpartners (suppliers) and through the use of
power generators and other temporary
equipment, we were able to quickly put
the production plant (Plant 2) back into
operation.

ULVAC Group’s Response to the Great East Japan EarthquakeULVAC donated 10 million yen to Hachinohe City, where
ULVAC Tohoku’s head office is located, and 5 million yen to
Aomori Prefecture. Through the Japan Red Cross Society, we
also donated disaster relief funds collected from our employees
totaling over 1.4 million yen to the affected areas.
In addition, a total of 71 cardboard boxes containing of
supplies, including sanitary goods and clothes donated by

employees as well as hygiene
products stored at thecompany, were distributed
to Kesennuma City with thehelp of Shonan Bellmare, alocal J-League soccer cluband ULVAC’s CSR partner.

Bellmare CSR staff members sorting out relief
supplies

Coping with restrictions on the use of electricity
All large power consumers (i.e., those with a contracted
power supply of 500 kW or more) in the areas covered by the
Tokyo Electric Power Company were requested to reduce theirmaximum summer power consumption by 15% compared tothe previous summer’s consumption level from July 1 onwards.
Among ULVAC’s plants, the following were subject to therestrictions: the ULVAC head office/plant, Fuji Susono, Chiba
Tomisato, and Chiba Sanmu plants.
At the ULVAC head office/plant, which focuses ondevelopment, we increased production during the night-shift torespond to customers’ needs.

All business divisions filed applications to operate during the
day and conducted demand monitoring*. We had no experiencein load adjustment or backup operations using private power
generators, which made us realize the importance of electricity.
Although power supply shortages resulting from the closureof nuclear power plants are likely to continue, our Group
companies are committed to maintaining the operation of theirfactories and attaining profits.
We believe that it is our obligation as a manufacturer tomake it through these difficult times and to improve our basic
capabilities.
* Demand monitoring: Monitoring power consumption to predict andmonitor power demand.

Improvement of our disaster prevention system
ULVAC has been working to establish a disaster prevention
system focused on earthquakes and fires. Based on the lessons
learned from this earthquake, we began reviewing measures toprevent damage caused by tsunami waves. However, since the
ULVAC Chigasaki plant is unlikely to be hit by such waves,measures for that plant are focused primarily on damage due toflooding of the Sagami river.
To minimize the potential damage caused by the flooding of
the Sagami river (the result of a heavy downpour occurring
roughly once every 150 years), we will implement effective
measures to prevent the inundation of development equipment
inside our buildings.

We also made major changes to our emergency evacuation
drills, which now focus not only on evacuating outside but also
evacuating to the second and higher floors as well as theimplementation of roll calls and confirmation of employees’safety. We also concluded an emergency agreement with
Chigasaki City in order todevelop a system for more
actively accepting residents
in the areas around ourplant.
Mr. Nobuaki Hattori, Mayor of Chigasaki City (left)
and ULVAC Director Motoyoshi

gyTechnolo

y
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c
e
T

Technology

ULVAC Group Technology

Technology
ULVAC constantly takes on new technical challenges
as we develop our business activities globally.
This section introduces ULVAC’s technologies aswell as our commitment to quality assurance andprocurement that support our brand.

Technology

ULVAC Group’s Organic EL Solution

Expectations for Organic EL Lights

An organic EL basically consists of a carrier (electron)transportation layer between the electrodes and aluminescence layer which is made up of organic materials.
Among such materials, those used for the luminescence layer
play an important role. Depending on their molecular weight,
such organic EL materials are categorized as one of thefollowing two types: low molecular or high molecular.
ULVAC supports both material types and offers proposals
not only for organic deposition systems but also for TFT
production, sealing, and other various systems. ULVAC’s
organic evaporation sources were all developed in-house andhave been mounted in our mass production systems since
2001.
Though at this time the primary evaporation source used
for mass production systems is known as linear source, weare currently developing a device that uses organic materials
with an efficiency several times higher than that of ourexisting devices. Also, we are proactively developing an inkjet
device for applying organic materials more efficiently.

Our efforts to reduce power consumption this summer inJapan greatly influenced various electric home appliances. In
particular, many people purchased new energy-saving lights.
Organic EL lights are known as next-generation lights andthey are known for having higher performance thanconventional incandescent lamps, fluorescent lamps, andeven LEDs. ULVAC was the first in the world to develop an
organic EL lighting device with a substrate of 100 mm2 andhas also succeeded in developing a 6-inch lighting device
with better practical performance. We are continuing todevelop this device with a focus on practical application.
In addition, besides displays and lights, we are actively
studying the use of organic semiconductors in solar cells. The
advantages of these solar cells include that they are thinnerthan other types of solar cells; that they are less expensive
than silicon, which is a material used in major types of solar
cells; and that they use fewer materials. ULVAC will continue
to proactively study and develop technologies such as thesethat play important roles in energy saving.

Organic EL Production System “ZELDA”

Organic EL lighting device

Organic EL is Important for the Next Generation

We respond to social needs withour cutting-edge technologies
We offer not only proposals but also global support
Did you know that the displays you see in everyday life can be divided into various types? ULVAC produces a wide
variety of next-generation systems for manufacturing displays. Organic EL (Electroluminescent) displays, which havebeen drawing attention in recent years, are expected to become one of the core types of next-generation displays
because they consume less power compared to LCDs (Liquid Crystal Displays) and can be made very thin, allowing for
great flexibility.

ULVAC has supported the evolution of LCDs for a long time. By
applying our technologies, low-temperature polysilicon (LTPS) LCDs, asuccessor to amorphous silicon (a-Si) LCDs, we realized improved video
performance (increasing the beauty of fast movements), higher
precision (more realistic detail), and weight reductions. In addition,organic EL displays are expected to become a next-generation display
for smartphone and tablets, for which there is great demand.
Expectations regarding energy saving for organic EL displays areespecially high because such displays emit light by themselves; nobacklights are required, which results in lower power consumption.

09

ULVAC Group CSR Report 2011

ULVAC Group Technology

Structural Differences between LTPS LCDs andOrganic EL Displays

LTPS TFT Liquid Crystal

Cover glass
Touch panel(Glass)Glass substrate

When voltage is applied, a positive hole and anelectron are generated from each of an anode and apositive electrode. When these are combined in theluminescence layer, the organic material of the layer
is excited. The
layer emits lightas it returns to its
original state.
Combination
Positive hole

Glass substrate
Backlight(LED)

Organic EL
Simplerstructure

Cover glass
Touch panel(Glass)Glass substrate

Light emission

ULVAC and Organic EL Displays

Principle of Organic EL LuminescenceElectronVoice

We support you with our global
systemULVAC Group can validate all organic EL processes

required by our customers and has a system for supporting such processes both
domestically and globally at our group companies, including Korea Institute forSuper Materials. In addition, we realize prompt
support by using ULVAC products for thecomponents required in organic EL processes.
We will continue to enhance domestic andglobal cooperation across our group andrespond to the various requests of ourcustomers. When you think organic EL, pleaseleave it to us!
Mamoru Nagase
Senior Manager, FPD PV Global Business Unit
s

10

gy
Technolo

Technology

ULVAC Group Technology

Power Semiconductor Devices that Minimize Power Loss

Saving energy by
producing “Production”
ULVAC provides power semiconductor device production systems.
The electrical products and vehicles surrounding us operate by converting the power supplied to them according
to their individual specifications. The semiconductor device used to control this power conversion circuit is known
as a power semiconductor device, and such a device is essential for using power efficiently. ULVAC provides ourcustomers with power semiconductor device production systems that make full use of our semiconductor
production system technologies.

Roles of Power Semiconductor Devices
Electrical home appliances such as air conditioners,
washing machines, and refrigerators are supplied withAC power. They convert AC to DC power using a
converter within the product, and at times theyfurther reconvert DC to AC power using an inverter.
A power semiconductor device is built into the motorthat drives the inverter or power conditioner, and thisis used to perform power conversion or to control thedevice in order to increase energy efficiency. Power
semiconductors feature large current capacity, highvoltage resistance, reduced heat buildup, and better
heat dissipation, among other characteristics. This
type of semiconductor is a key device for realizing
energy savings and has a wide range of applications,such as electric trains, industrial device power
supplies, medical equipment, eco-cars, electricalhome appliances, power controls, and motor
controls.

Galvanic
cellPower electronics
equipment

Time
Motor

DC

VoltageTime

AC

Voltage

DC

Voltage

VoltagePower semiconductor devices are semiconductor devices thatconvert electric currents from AC to DC or raise or lower voltage
in order to efficiently control power.
Power semiconductor devices are essential devices for savingenergy that are used in a wide range of fields, from power
controls for industrial equipment, electric trains, eco-cars (EV,
HEV), electrical home appliances, and solar energy and wind
power generation to motor controls.

Time

Solar cell

AC
Time

conditioner/
Power electronics Airelectricalequipment
home appliance

Key device: Power semiconductor device

Motor driving inverter

To ensure the steady provision of those things we often take for
granted in our daily lives, power semiconductor devices are built
into various pieces of equipment to realize the stable supply of
power and reduce energy use.

New

Expectations for IGBT*in the Chinese Market

Most of the electrical home appliances currently used in China are
non-inverter types with low energy efficiency. For example, inJapan the percentage of home air conditioners using inverters is
100%, while it is 7% in China. The Chinese government’s twelfth
5-year plan includes measures for “renewing industrial equipment”
and “saving energy and conserving the environment.” Thegovernment is also promoting replacing old products by offering
government funding based on the “Measures for Replacing Old
Electrical Home Appliances with New Ones.” In response,
manufacturers of electrical home appliances in China are planning
to produce inverter air conditioners. We expect that ULVAC’s
power semiconductor production system technologies will bemade use of in conjunction with this trend.

Power conditioner* IGBT: Insulated Gate Bipolar Transistor/one variety of power semiconductor
ULVAC Group CSR Report 2011

ULVAC Group Technology

Power Semiconductor Device (IGBT) Process FlowULVAC provides an ion implantation
system, SOPHI-200, and a sputteringsystem, SRH-420, for producing IGBT, athin power semiconductor that realizes
high current with reduced power loss.
The thickness of the wafers used as
substrate for IGBT is now approximately
half of that used in 1995, when it was
first developed. This technology is importantin order to reduce power loss as much as
possible during the process in whichelectricity flows from the front to the rearsurface. In addition, by forming a fieldstop layer on the rear surface, reduced
power loss, higher speed, improvedpressure resistance, and downsizing canbe realized. ULVAC has developed its
own original ion implantation andsputtering systems capable of handlingextremely thin wafers and also utilizes
this technology for rear surface electrodeformation, surface processing, and verythin wafer transportation for IGBT.
In addition, to further improve
performance going forward, we are

SOPHI

MLX-3000N<Ion implantation
system>Front side

NE-series<Sputtering system>

Ion
implantation

Back side<Etching system>

Back metal
deposition

NA-series<Ashing system>

Contact
electrode

Oxidation
insulation

Ion
implantation

NLD-series

Grinding
Dicing

SOPHI

SRH-420

HSI<Ion implantation system><Sputtering system><Etching system>

advancing developments to change thewafer materials from the conventional
silicon to silicon carbide (SiC) or gallium
nitride (GaN).
ULVAC is participating in an SiC
power semiconductor mass production
prototype project and is jointly carryingout development. SiC features low power
loss, high pressure resistance, and highthermal conductivity properties and is
expected to serve as a next-generation
power semiconductor material. ULVAC
was the first manufacturer in the world
to develop an ion implantation system,
IH-860DSIC, to serve as an SiC device
mass production system.

Power Semiconductor Device Production SystemsPower Semiconductor Structure

Roles of ULVAC

Ion Implantation
System
SOPHI-200

Sputtering System
SRH-420

FeaturesFeaturesFeatures

Can handle extremely thin wafersup
to 200 mm diameter
Excellent track record handlingthicknesses from 50 µm to 100 µm
Equipped with a cooling platen(electrostatic chuck type)Can also handle standard wafers
Inexpensive parallel beam ion
implantation system

Can handle extremely
thin wafers up to 200 mm
diameterEasy to change substrate sizes
Pursuit of ultimate cost performance
Can also transport standard wafers
Supports lamination/simultaneous
sputtering with multiple cathodes

Can perform automatic, continuous
high-temperature implantation at up to 500°C
Can perform implantation with a maximum
energy of 700 keV
Can perform continuous implantation withdifferent amounts of energy
Enables high throughput by employing a dual
platen method
Can convert AI+ beams to high current(up to 200 µA)

Voice

Ion Implantation
System for SiC
IH-860DSIC

Technologies that contribute to the global environment

The fields to which IGBT power semiconductor
devices can be applied have been expanded bytechnical innovations compared to the time in which
IGBT was initially developed. For IGBT substrates,
ULVAC’s technologies for field stop layer formation ion implantation
systems and electrode film formation sputtering systems are used actively
in processes for extremely thin wafers’ rear surfaces. We have also
developed extremely thin wafer transportation technologies since 1997
and have significant experience with such technologies. It is expectedthat inverters will increasingly be employed in electrical home
appliances due to environmental conservation measures adopted in

China, and many power semiconductor
manufacturers in China have alreadybegun manufacturing IGBT. Suchelectrical home appliances featuring
inverters that are produced in China will
likely be exported to Europe and theUnited States. In this way, I hope that
ULVAC’s technologies will make a huge
contribution to the global environment.
Junki Fujiyama
Director, Semiconductor & Electronics Equipment Global Business Unit

gyTechnolo

Technology
ULVAC Group Technology

Converting Unused Energy to Future Energy

Compact and portable power generation
systems that use low-temperature heat sources

N View of Electric Power Examination of Compact and Portable
Power Generation System [Photo 2]

Monitor for displaying electricity,pressure, temperature, and flow rate

We are challenging ourselves to solve environmental issues with renewable energy.
To prevent global warming and the depletion of petroleum resources, demand for the use of renewable energy has been increasing
rapidly. Also, as a result of the Great East Japan Earthquake, there is strong demand for the immediate practical realization of power
generation technologies using heretofore untapped energy.
ULVAC-RIKO, Inc. has developed a compact and portable power generation system capable of generating 3 to 12 kW by using a
low-temperature heat source (150°C or less). We asked Professor Tsutsumi of the University of Tokyo to comment as an advisor on
our research and development, and we also asked for the cooperation of RichStone Limited, the National Institute of Advanced
Industrial Science and Technology (AIST), and the Kanto Bureau of Economy, Trade and Industry.

Background and Outline of the Research andDevelopment Effort
Though there many low-temperature heat sources of
150°C or less—such as waste heat from factories, hot spring
heat, and solar heat—they are often not yet used to generate
power, and even if so they are used only as heat. In addition,although the practical realization of such power generation
systems is under consideration, most power generation
facilities have a capacity of 50 kW or more, which requires alarge amount of heat, and consequently their potential
deployment locations are limited due to high initial costs,
including that of the installation space as well as construction
costs. ULVAC-RIKO’s power generation system, however, cangenerate power using only cold and hot (between 75°C to
100°C) water, which is heated by the low-temperature heatsource (150°C or less). This system is small enough to betransported by pickup truck, produces less noise, and can beinstalled easily in spaces where heat is generated.
N Schematic Figure of Compact and Portable Power Generation System(Rankine Cycle*1) [Figure 1]
UniqueTechnology

All-in-one generation of Eccentric
Orbiting scroll expander
Power converter

Successful Generation of 3.8 kW of Power
During the development of this power generation system,
we manufactured a 3 kW compact and portable power
generation system [Photo 1] using the Rankine cycle method[Figure 1] and conducted a test to generate power using hot
and cold water [Photo 2]. To take just one example from ourresults, we achieved 7.2% energy regeneration efficiency*2 andgenerated 3.8 kW of power [Table 1] with hot water at atemperature of 91°C, volume of 43 liters/min, and temperature
difference of 69°C. This demonstrates that we were able torealize energy efficiency and achieve practical power
generation output.
One of the essential units necessary to realize this power
generation system is the all-in-one generation of eccentric
orbiting scroll expander*3 (eco scroll expander*4). ULVAC-RIKO
has developed this scroll expander based on their proprietary
technologies and through them realized low mechanical loss, ahighly-sealed expansion chamber, and low noise.
*1 Rankine cycle: One of the processes used to convert heat to mechanical energy by using an operating
medium consisting of liquid and gas(Examples) Thermal and nuclear power generation*2 Energy regeneration efficiency: The percentage of power that can be extracted from the suppliedenergy*3 Scroll expander: A unit consisting of a pair of spiral components of identical shape, one fixed and theother loose (relatively speaking, capable of shaking motion) in order to increase thevolume of the expansion chamber and to realize expansion*4 Eco scroll expander: A scroll expander implementing a unique method

N Compact and Portable Power Generation System (Test Model) [Photo 1]

4.5 kW lamp

Compact and portable power generation system

N Electric Power Examination Test Result of Compact andPortable Power Generation System [Table 1]
Maximum measured value
Volume efficiency

98%

Total adiabatic efficiency

71%

Energy regeneration efficiency

7.2%

Generated power output

3.8 kW

This system uses various low-temperature heat sources,
including waste heat from factories, large automobiles, andships; waste evaporation heat; waste heat from fuel batteries;
geothermal heat; and solar heat. This technology has a wide
variety of applications such as hybrid cars, electric compressors
for electric vehicles, air blowers*5 for fuel batteries, andvacuum pumps.
In the future, we plan to perform field and endurance
tests on-site in order to accumulate base technologies aimed
at commercialization focusing on convenience, reliability, andmaintainability before launching such technologies into themarket.
*5 Air blower: A machine that discharges the intermediate pressure between a blower and a compressor

Voice

To make products that respond to our customers’ needs
With the help of our partners, in just two

short years we have succeeded in developing thispower generation system, which uses low-temperature heatsources that have heretofore been neglected. After the Great East
Japan Earthquake, the demand for energy has increased and wehave received more and more inquiries, not only from those in ourtarget industries but also those in other various industries,
individuals, and even potential customers overseas.
We will continue to strive to quickly release products thatsatisfy our customers’ needs.
(From the left, back row) Satoshi Endo, Manager, Development Section, R&D Department; Dr.
Yoshikazu Ishii, President and CEO; Kiyotaka Mantani, Development Section(From the left, front row) Soh Kahwin, Development Section; Kosuke Sasahara, Development
Section; Hiroshi Sagara, Assistant Manager, Development Section

Working
medium
HFC R134a orsimilarLiquid pump

CSR Report 2011

One feature of this system is that it can convert hot water(from 75°C to 100°C) into electricity. The system is small,
W1,100 × D800 × H1,400 mm, and weighs only approx. 200
kg. Its mobile design allows it to be transported by a pickup
truck and installed easily. Also, it makes less noise, increasing
the number of possible installation locations. Additionally, by
combining 3-kW eco scroll expanders, the output of thesystem can be increased from 3 up to 12 kW, depending on
the size of the heat source.

Adaptable Low-Temperature Heat Sources

Waste heat fromfactories
Hot spring heat
Solar heat, etc.
75°C to 150°C

Heat exchange(for evaporation)

Features of the Highly-Efficient Compact andPortable Power Generation System

P

Cooling water
10°C to 30°C

Heat exchange(for condensation)ULVAC Group Technology

ULVAC-RIKO, Inc.
Since its establishment in 1962, ULVAC-RIKO, Inc. has
manufactured and sold thermal analysis and thermal property
measurement systems that operate at a wide range oftemperatures from extremely low to extremely high, heating andcooling systems using infrared lamps, and application equipment,
all of which use their core heat technology, in addition to selling

instruments imported from overseas. Five years ago, they started a
new business in order to establish an additional main business forthe future. Presently, they are focusing especially on developing
new products that use their unique technologies in growing fields
such as those related to the environment, energy, andnanotechnology.

gyTechnolo

Technology

ULVAC Group Technology

Quality Assurance System Concept in Relation to Development and Design Flow

Improve the ULVAC Brand

Development/design
process

Our goal is safe, confidence-inspiring products

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

Making Rapid Improvements Based on Quality
Information
Our claim management system
All information on quality issues related to ULVAC and its
production facilities is managed comprehensively by the ClaimManagement System, enabling the information to be sharedby the Group. The system identifies persons in charge within
the process at the Chigasaki Plant or our manufacturingassignees and also notes the date. Any customer complaints
after product delivery are also processed by the system. If a
serious safety issue arises, the system automatically sends out
the information to all management personnel according to thelevel of risk of each claim. If thesituation is particularly serious,
the information is labeled a“Critical Claim” and reported at
the monthly business meeting (aregular monthly meeting inwhich the president and division
managers participate), where
responses are discussed anddetermined via a top-down
approach.
A quality inspection

ActionPolicies

Claims from customers

Quality control system for customer satisfaction andconfidence
Risk analysis and feedback are two fundamental concepts
of ULVAC’s quality management system. Following the flowthat begins at the development and design stage, we identify
risks, identify countermeasures to them on a “risk analysis
sheet” and work to prevent quality issues. In the event of anissue occurring after production processes and shipping, we
write up a feedback list based on data collected from ourClaim Management System and feed back the information ateach stage.
We also run a stringent quality check on such issues during
the quality inspection prior to shipping. In this manner, we aim
to be timely providers of products that reflect the most
up-to-date technology so that we can promptly support ourcustomers’ production activities.

Feedback Stages (acting on feedback)(issue)Quality issues
within a process

Information
input

Claim Management System *In five languages
Notification

Management Engineers

Information
on progress

Cause oftroubleProposecountermeasures(plan, staff, time line)

Revision ofdrawings, etc.

Feedback to
products

ULVAC Group CSR Report 2011

ULVAC Group Technology

Survey cause and identify

Plan countermeasures
to cause

Claim
Management
Systemclaim
countermeasureprogress control

Corrections
Take countermeasuresand check results

Even deployment

Determine impact on
related equipment andtake countermeasures(take countermeasureson related equipment)*In five languages (Japanese, English, Korean, Chinese (Simplified, Original))

A claim is
received

Countermeasures(results check)

Improvement
measures

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

Use when producing
subsequent machinesof the same design ordeveloping new

equipment(prevent recurrence)

Risk analysis

Change risk
analysis

Feedback

Customer
Claim report

List and take countermeasures on issues (claims) occurring duringmass-production processes and take action to prevent issues fromrecurring in subsequent production of same machine

Feedback

Globalization of the ULVAC Brand

Claim/even
deployment

Action item for
manufacturing
process

Analyze risk factors at development stage and prior to start ofproduction, consider countermeasures, and take action to prevent theoccurrence of issues

Machine No. 2, No. 3, ...
Subsequent machines

Assembly
process

Procurement
process

Quality issue
occurring at
customerfactory

Designoutputcheck

Risk analysis
of Change
point

Clarificationof customer
requirements

Development
and design
inspection

Additionalrisk analysis

Development
plan/risk
analysis

Sales/order-taking
process

Design change
process
Drawingrelease process

Designinput

Control process

Claim

Claim Management System*

Standardization
process

Mass production machine No. 1

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

Quality
PolicyStandardization
process

After this assessment, products are then examined andapproved by the Board of Standing Directors and Auditors.
Only products that satisfy all of these criteria are permitted tobe manufactured, produced, and sold. Such products aremaintained and managed using the product, production, andsales matrix for ULVAC Group products. Such a strict systemallows us to distribute “ULVAC Quality” around the world,
thereby supporting our globalization.

Based on a checklist, products of the ULVAC Group areassessed with respect to their model registrations;clarification of commercial distribution; compliance with thestandards for use of ULVAC trademarks; management
systems for quality, environment, safety, hazardous
substances, etc.; protection of intellectual property rights;
and technology leakage preventive measures, among others.

ual
ULVAC Global Intellect
Property Rights
gies andtechnolo— Expanding ULVAC rldwide —
wo
d
an
br
C
VA
the ULULVAC actively protects the technologies
attained through our significant researchand development investments as intellectual
property right. We have also increased thenumber of domestic patent applications wehave filed while proactively expanding ourforeign patent application efforts inconjunction with the globalization of ourbusiness.
Figure 1 shows trends in our filing ofdomestic patent applications and thepercentages of foreign patent applications
versus domestic applications. South Korea,
China, and Taiwan are among the majorcountries in which we are filing applications.
We are applying for patents in accordancewith our business globalization strategies(see Figure 2). Also, we have registered the“ULVAC” trademark in countries around theworld in order to establish and maintain theworldwide reliability of our ULVAC brand.
Particularly in order to prevent issues
related to technology leakage andcounterfeit products, we revised theIntellectual Property Rights Management
Regulations for Domestic and Overseas
ULVAC Group Companies in order tofurther enhance our legal protection systemon a global basis.

Figure 1 Trends in Domestic Patent Applications
and Percentages of Foreign Patent Applications(Fieldnumber)500

Trends in domestic patentapplications
Percentage of foreign patentapplications

(%)
100

Figure 2 Trends in Patent Applications by Country(Field number)
150

FY2000FY2008

120

400

80

300

60

200

40

60

100

20

30

(FY)

South Taiwan China India
U.S Europe Germany Other
Korea* Data since FY2009 is not yet available because such submissions areinternational applications based on the PCT (Patent Corporation Treaty).

2005

2065

2007

2008

2009 2010* The percentage of foreign patent applications for
FY2010 is not yet available.

90

Figure 3 Worldwide Applications for the “ULVAC” Trademark(distribution of countries in which applications have been filed)

N Countries in which applications have been filed (51 in total)
N Countries in which applications have not yet been filed (as of July 5, 2011)gy
Technolo

Technology

ULVAC Group Technology

Building Good Relationships with Suppliers
Suppliers are critical partners to the ULVAC Group. We maintain and promote fair and proper business relations and work to
optimize materials and logistics procurement that is based on solid mutual trust.

ULVAC Quality is Supported by Our Suppliers’ Quality— Our supplier certification system has started operation —ULVAC products consist of a significant number of parts

across our group, and appropriate guidance and audit systems

and materials, most of which are provided by our suppliers.

are important for ULVAC’s SCM (Supply Chain Management).

Thus the quality of our products depends on our suppliers’

We will visit suppliers’ sites to learn about their issues and offer

quality. Throughout the expansion of both domestic andguidance for or support any necessary improvements together.

global production areas, it is important to assess supplier

We have many opportunities to learn from our suppliers. To

ULVAC has a policy of producing products locallyquality in an accurate and fair manner at each group company.

discuss these and other issues, we will hold acceptancefor our customers and is now preparing to further

To this end, we have integrated the assessment systems at

inspection meetings, in which group companies also

promote overseas production by starting production

all of our group companies and we established a "supplierparticipate, and quality and procurement-related meetingsof large liquid crystal and solar cell production

certification system" in 2010.

both domestically and globally in order to promote our

China Procurement Center Establishedsystems in Suzhou, China. In addition, to respond to

In the course of introducing our supplier certificationstrong pressure from our customers to reduce costs,

system, we investigated each supplier’s operation and

ULVAC quality is supported by our suppliers’ quality.

we have established the China Procurement Center inmanagement characteristics. For overseas suppliers, we madeThrough cooperative quality improvement activities, we will

Suzhou and are working constantly to procure parts

extra room for advice and discussion in consideration of the

produce ULVAC quality that satisfies our customers, aiming toand materials of optimal quality at low prices.

cooperative quality improvement activities.

difference in our respective cultures. Instead of merely making

achieve a "Win-Win" relationship in which we can improve

In 2011, in order to further enhance ourdemands, we allowed each supplier to explain its management

together with our suppliers.

procurement capacity, in cooperation with our groupmethodology and we arranged a results-based quality control

companies we are planning activities to promotemethod together. Consequently, in a single year the averageoverseas procurement in China. We will continuously

failure rate of deliverables for all group companies has been

strive to understand differences in regulations andreduced to one-third compared with the previous year.

cultures (which are important for our goals), comply
with the RoHS directive, and ensure quality.

This system only permits procurement from certified(Second from the right, second row) Tomoko Hirose,
In charge of China Procurement Center (on loan from ULVAC, Inc.)

suppliers satisfying our supplier certification system. In otherwords, it aims to ensure all procured products are of the same
quality even if the people placing or taking orders change, as
well as to ensure that final products are of the same quality

Modal Shift Trialeven if the factory in which such products are produced differs.
Therefore, acceptance inspection criteria, which we unified

ULVAC employees offering guidance to a supplier, on-site

In order to reduce carbon emissions and costs by shiftingfrom our traditional means of transportation, trucks, to that ofr

Supplietrains, we conducted a modal shift trial on transporting

ent
Comm

vacuum application materials. To measure the effects of thechange in transportation method change on the cargo, asmall vibration gauge was installed in the cargo to record theimpact of acceleration during transportation and also to verify
the external forces applied to such cargo during the loading
and unloading of the container as well as during transport bytrain. Our results indicate that when the cargo is transported
by train approx. 330 km, carbon emissions are reduced by an
estimated 41.57% per trip compared to transport by truck.
Transport by trains is inferior to that of trucks with respect
to time control, as trains are restricted by a schedule.
However, such transport is very effective in terms of the global
environment, such as reducing carbon emissions. We consider
the establishment of this new transportation option a big stepfor ULVAC’s corporate activities.

Tetsuji Obara,

Assistant Manager, Logistics Department, Procurement Center

ULVAC Group CSR Report 2011

ULVAC Group Technology

Aiming to Further Improve
the Environment Quality System

Motohiro Uemura,First of all, please allow me to express my appreciation at
our being awarded an Excellence Award for QCD (Quality,
Cost, Delivery). We are all encouraged by receiving such highaccolades from one of our customers.
We have been able to achieve our current state of affairs
by responding to high-level requests from ULVAC as well as ourother customers and stakeholders.
Especially in recent years, requests for environmentfriendly corporate activities have been increasing. To respondto this trend, we have obtained ISO 14001 certification at 15 of
our offices around the world, including three factories in China
in January 2010.

In addition, THK promotes green
procurement as the foundation of its
environmental conservation complianceand environmental aspects. In 2009, in
response to the revision of CSCL*1,
enforcement of REACH regulations*2,
etc., we drastically altered our criteria for chemical substancesin cooperation with our traders.
Together with our customers and traders, we will carry out
our social responsibilities and strive to build an environment
quality system that facilitates a mutually prosperous society.

Branch Manager, Atsugi Branch,
East Japan Sales Region II, THK Co., Ltd.

*1 CSCL: Abbreviation of the “Act on the Evaluation of Chemical Substances and Regulation of Their Manufacture, etc.”
This act deals with safety evaluations of newly manufactured or imported chemical substances.
*2 REACH regulation: An EU regulation on chemicals that came into force in June 2007

ULVAC Group Environment

To provide environmentallyfriendly products

Environment
The following section outlines a variety of environmental initiatives of
ULVAC Group companies, including a battery-powered boat project, one
application of our cutting-edge technologies that contributes to the global
environment.

Environment*Namegaya area of Chigasaki City: Location of our Tanbo (rice field) Project (started last year)

The ULVAC Group Promotes Reduction ofEnvironmental Impact with Proprietary
Cutting-Edge Technologies
Amid growing demand to reduce CO2 emissions to halt
global warming, the Great East Japan Earthquake badly
damaged several nuclear power plants, which until that point
had been considered one of the most effective measuresagainst global warming. The serious environmental
destruction caused by the disaster has reminded us of the
difficulty of tackling environmental issues and the necessity
for drastic measures.
The ULVAC Group, which is committed to providing
products that help protect the global environment, has beenpromoting environmentally friendly plant operations
throughout the production processes for such products.
ULVAC’s environmental initiatives can be classified into
three main policies (as shown on the right).
In this section, we will introduce these initiatives.

Contributing to reducing environmental
impacts through ULVAC’s proprietary
technologies
ULVAC provides cutting-edge technologies for realizing
natural energy, saving energy, saving resources, and reducing
environmental impact. Among our cutting-edge productswith high market shares, one finds production equipment forsolar batteries, LEDs, LCD televisions, thin-film lithium
batteries, condensers for hybrid cars, and rare-earthmagnets. Though there may be few opportunities for
ULVAC Group CSR Report 2011

Environmental Philosophy
Recognizing that environmental conservation is one of thehighest-priority challenges facing humanity, the ULVACGroup has committed itself to the conservation of the
Earth’s natural environment and is making contributions
toward society’s environmentally sustainable growth anddevelopment in all business activities.

Environmental Policies

If the products developed with our proprietary
technologies negatively impact the environment, our efforts
mean nothing. Therefore, in addition to managing thechemicals contained in the materials used for our products,
we are making voluntary efforts to refrain from using thechemicals listed in the RoHS Directive. Thanks to thecooperation of our suppliers, as of June 30, 2011, ULVAC
sells 2,731 products that use no RoHS-listed substances. We
will continue these efforts.
We are also working to reduce the operational energy
necessary for our equipment. Our newest models of oursemiconductor production equipment use 40% lesselectricity than the previous models. We have shipped morethan 1,200 units of ECO-SHOCK; ECO-SHOCK energy-saving
attachments are capable of reducing the electricity usage ofvacuum pumps as much as 50% to 80% while the pumps
are no-load running.

To protect the environment in the
manufacturing process
Production and recycling processes for equipment andmaterials necessarily involve certain risks of environmental
pollution. To reduce such risks, any involved risks aredouble-checked by the Environmental Management Section
and the Corporate Safety & Health Department upon newly
installing, maintaining, changing, or terminating environmental
facilities. In addition, we share information on environmental
risks through cross-sectional activities led by the Global
Environmental Management Committee. We have also beenmonitoring fixed points within our plants in order to prevent
serious environmental accidents.

By setting voluntary targets, we have been working to
reduce energy usage. To promote the use of natural energy,
we have installed a solar power generation system at our
Chigasaki Plant.
In this way, the ULVAC
Group
continues
tocontribute to environmental
conservation with its
proprietary cutting-edge
technologies.

Yoshio Sunaga
Executive Vice President
and Environmental
Management Representative

Enhanced Environmental Management of the
ULVAC GroupBy establishing the Global Environmental Management
Committee in 2010, the ULVAC Group enhanced its
environmental management system. This stronger system
now covers not only domestic but also overseas groupcompanies in order to match the group’s global production
system.
Global Environmental Management Committee

Environmental Management System of the
ULVAC Group
Environmental
Conservation

To provide productsthat help save energy
and resources, andprotect the environment

To promote energy-saving,
resource-saving andenvironmental products(environment and components)

To promote energy-saving,
resource-saving andenvironmental protectionin the manufacturing process

consumers to see our equipment firsthand, our products play
important roles in producing our daily life environments. In
addition, our compact and portable power generation
systems that make use of temperature differences haverecently been attracting the attention of hot spring resorts(see pages 13–14 for details). We have also developed a new
production method for coating materials used for building
insulated glass and can now offer such products at low
prices. Further, our quick charging systems for electricvehicles, which are unique solutions combining solar andstorage batteries with wind power generation, are being
installed all over Japan.

The ULVAC Group and the Environment

ent
Environm

t
n
e
m
n
o
r
i
v
n
E

Environment

Environmental
Information Committee

Environmental
Management
GlobalEnvironmental
Management Committee

Hazardous Substances
Total Abolition Committee
Energy Management
Committee

President of ULVAC
Environmental
Management
Representative of ULVAC
Environmental
Inspectors

Presidents of eachgroup company

Environmental
management personnelof each group company

For more details on the ULVAC Group’s environmental initiatives, visit the URL below
Webhttp://www.ulvac.co.jp/csr/

entEnvironm

Environment

ULVAC Group Environment

Tackling Global
Warming at Sea

The Future of Battery-Powered Boats
Q: What do you want to achieve with battery-poweredboats? And what are your expectations for ULVAC?

Participation in a battery-powered boat project
ULVAC participated in a battery-powered boat project promoted by Tokyo University ofMarine Science and Technology, developing photovoltaic power generation andquick-charging systems for battery-powered boats, which are indispensable for thewidespread use of such boats. Battery-powered boats reduce the environmental impact oftraffic at sea. We asked the university professor leading this project, Professor Takamasa, toshare with us the background and goals of the project as well as his expectations for ULVAC.

Battery-Powered Boat Project
Q: First, would you tell us about the developmental
background of battery-powered boats?
Most boats used today run on diesel. This is why boats
generate noise, vibrations, and odors, and this causes adverse
environmental impact on the quality of air and water becauseof the exhaust gas. In fact, many boats are less friendly to theenvironment than public transportation or cars.
Given such circumstances, our collaborative industryuniversity project team started to develop a battery-poweredboat, the “Raicho-I” (“raicho” means “thunderbird” inJapanese), with a view to its commercialization. This new
boat is equipped with a secondary battery and motor insteadof the conventional combination of a fuel tank and engine.

Social Issues Solved by Battery-Powered
Boats
Q: How do you think widespread use ofbattery-powered boats will change society?
The Raicho-I is the world’s first boat to be powered by alithium-ion battery that has a rapid charging system.
Conventional battery-powered boats use lead batteries thatweigh 10 times as much as lithium-ion batteries. Lithium-ion
batteries, in addition to helping reduce the weight of boats,can be charged to approximately 80% of their full charge
capacities within 30 minutes. Compared to boats of the sameclass equipped with diesel engines, operating abattery-powered boat costs roughly half (one-sixth ifnighttime power is used) and emits 50% to 70% less CO2.
Since these new boats run on electricity, they cancontribute to society’s shift from being reliant on gasoline
and other fossil fuels to becoming a low-carbon society.
Also, if people see boats as an environmentally friendlymeans of transportation, this may promote marine leisureactivities and even cause changes to the future of marine
traffic and fisheries.
For example, kombu (kelp)
cultivation is vulnerable to water
CO2 70%Significant
reduction
pollution caused by the gas and50%
oil discharged from boats. Thus
battery-powered boats willcontribute to the conservationof the marine ecosystem.

Japan is surroundedby the ocean and has
many rivers.
This technology isjust what
Japan needs.
ULVAC Group CSR Report 2011

The ULVAC Group and the Environment

Using batteries as a power source canreduce CO2 emissions by 50% to 70%

Tomoji Takamasa
PhD in Engineering, Professor, and Dean,
Graduate School of Marine Science andTechnology,
Tokyo University of Marine Science andTechnology

Japan is surrounded by the ocean and has many rivers
and isolated islands. For this reason, I strongly believe thatJapan truly needs battery-powered boats. Such boats will not
only reduce the load on the environment, they will also serveas an important means of transportation in the manner ofcars and airplanes, thereby greatly contributing to reductions
in traffic jams and accidents as well as the growth of new
industries.
I also want to realize the “eco-friendly fishing ports”(ports that aim to prevent global warming by reducing CO2
emissions from fishery activities as well as to reduce fisherycosts by saving energy) being promoted by the Ministry ofAgriculture, Forestry and Fisheries. By increasing the numberof battery-powered fishing boats and deploying more battery
charging infrastructure, such fishing ports will soon movecloser to realization. To this end, we are testing

battery-powered boats in fisheries. These efforts will help
protect the fishing industry, which is among Japan’s mostimportant industries.
Of course, still many challenges remain to be overcome.
We won’t be able to do this alone. It is only by cooperatingwith companies that haveexcellent technology, such as
ULVAC, that we will be able
to create new value.
I hope that as our partner
for making a difference inthe world, ULVAC will
enhance its technologicalstrengths through this joint
research and development aswell as our experiment- andverification-related activities.

Battery-Powered Boats and ULVAC’s Technology
In 2010, ULVAC completed a photovoltaic electric vehicle
quick-charging system (a PV/EV charging system). This technology
enabled our participation in the battery-powered boat project.
During the project, we challenged ourselves to develop the motorand drive unit of the “Raicho-S.” As EV motors are connected totransmissions, they must be high-speed, low-torque motors inorder to generate power. For boats not designed for frequent
stop-start operations, ULVAC developed drive units featuring
low-speed, high-torque motors capable of being directly
connected to propellers (rather than through reduction gears,

Messagewhich causes power loss). Our technology helped realize thissimple propulsion system. In addition to quick chargers and motor
inverters, ULVAC has also developed power semiconductors andpower generation/storage systems that use natural energy, such as
solar and wind power, which areessential for controlling such quick
chargers and motor inverters. ULVAC
will continue to offer technologies that
contribute to society.
Quick-charging system forbattery-powered boats

Progress in battery-powered boats contributes to conserving
the global environment.
To this end, I’m determined to meet any requests.

ULVAC successfully developed the motor inverters,
thereby playing an important role in the battery-poweredboat project. For this project, we needed to develop truly unprecedented
low-speed, high-torque boat motors in just half a year. Despite the difficulty ofsuch a task, we were able to meet the deadline in cooperation with our researchdivisions and overseas group companies.
Though the motor inverter installed on the “Raicho-S” is still a prototype,
we are pushing forward to commercialize it: we have not only visited China
many times to procure reliable parts and components, but we are also verifying
such materials internally. We are confident that these steady efforts will lead to Koji Shibayama, Senior Manager, Components Division
the cost reductions necessary to realize mass production of battery-poweredboats.
In addition to commercializing the motor inverters for battery-poweredboats, we are aiming to install photovoltaic quick-charging systems at fishingports. To this end, we will offer various technologies by combining thetechnological strengths of our group companies.
Water jet
“Raicho-S”

ent
Environm

Environment

ULVAC Group Environment

Construction of a New, Environmentally
Friendly Cleaning Plant
The ULVAC Group audits its environmental facilities upon their opening in order to reduce their environmentalloads and prevent environmental incidents.

Construction of a Cleaning Plant for Large
FPDs in Suzhou, China
We are building a new cleaning plant in the Suzhou
Industrial Park to provide cleaning services for large FPDs in
China (scheduled for completion in December 2011 and to
start cleaning operation in February 2012). Designed inaccordance with the ULVAC Group’s design, construction,and operation standards for chemical treatment plants*, thisnew plant will adopt the following new environmentallyfriendly cleaning methods: recycling of heat, water, andother resources generated from the operation of the plant’s
equipment as well as the use of new materials and technologies instead of the conventional chemicals.
Wastewater is to be collected by special chemical tanks
and discharged in amounts below the statutory effluent limit
by the new wastewater treatment equipment. The final

wastewater treatment tank is equipped with double monitoring sensors and automatic control valves to prevent thedischarge of wastewater exceeding the limit from the plant.
At this new plant, with a total area of 4,000 square
meters (which can be expanded as necessary), we will work
to improve product quality, enhance productivity, and operational efficiency as well as promote cleaning line automation.
The plant will offer full service to customers, including large
equipment production, parts processing, technological development, process provisioning, and cleaning services. We
hope this environmentally friendly plant will receive manyorders.
Design, construction, and operation standards for chemical treatment plants:* The
ULVAC Group’s standards intend to ensure that plants handling surface treatment
and cleaning operations that use acids and alkali have environmentally-conscious designs
and are safely built and operated with minimal environmental impact.

Cleaning
Plan

Outline of the New Plant

N Location:

On the premises of ULVAC (Suzhou) Co., Ltd.,No. 277 Suhong East Road, Suzhou Industrial
Park, Suzhou City, Jiangsu Province

N Construction Schedule:

April 2011 start, December 2011 completion

N Building:One-story plant with a total floor areaof 4,000 m2

Targets of ULVAC environmental initiatives and FY2010 results
Initiative item

To provide productsthat help save energy
and resources andprotect the environment
Environmental
contribution
through our
products

N ULVAC (Shanghai) Trading Co., Ltd.

To promote energy
and resourcesavings andenvironmental
protectionin products(equipment andcomponents)

Action itemULVAC environmental initiative target

Distributionof products
contributing to theenvironment/reuse of resources

Expanding sales of ecofriendly products

Completing elimination of
mercury, cadmium,
Green procurement lead,hexavalent chromium, PBB,
and PBDE by July 2011

Practicing the 3Rs

Environmental
contribution at ourplants and offices

To promote energy andresource savings andResource savings
environmental protectionin production processes Improvementof the plantand officeenvironments
Energy savings

FY2010 results

Evaluation

Expanding sales of eco-friendly
products

Some of the products of the Components Division and
the Materials Division now comply with RoHS

Completing elimination of lead,
mercury, cadmium, hexavalentchromium, PBB, and PBDE by
July 2013

Improving yield of materials
Reducing usage of harmful
chemicals

We improved the safety of the specialty gas bystrengthening usage management. Through proper use,
we reduced wasteful use of such gas

Reducing energy
consumption

We upgraded the heat source equipment at the Instituteof Semiconductor & Electronics Technologies, reducing
energy consumption by approximately 20% in crude
oil terms

Recycling and reductionof waste

CO2 emissions trends
CO2
emissionsJapanese
Overseas
production bases production bases

65,71469,00072,489160,000

Japanese
Overseas
production bases production bases

134,246

140,281

Usage(1,000 m3)

158,896

120,000

1,200

40,00080,000800

20,00040,000

400

0

2008

2009

2010

0

2008

Recycling and reduction of waste
Improving yield of materials
Reducing usage of harmful
chemicals

2009

ULVAC,
non-consolidated

Japanese
Overseas
production bases production bases

1,199

1,287

2008

2009

1,600

60,000

Sale and customer support for
ULVAC products in China

Recycling raw materials

Water usage trends

ULVAC,
non-consolidated

Electricity usage(1,000 kWh)

Improving efficiency in usageof target and process materials(gas)

energy use increased by 194% due to both steady production
and the expanded scope of companies targeted for calculation.
On the other hand, the group’s domestic energy use dropped
to 96.4% of the previous year’s level thanks to stricter energy
management. As overseas production is expected to continue
to increase throughout FY2011, improving overseas energy
use efficiency remains a challenge. We will continue ourefforts to reduce energy use.

Electricity usage trends

ULVAC,
non-consolidated

Reducing energy consumptionof products

Target achieved
Target 70%+ achieved
Target 50%+ achieved
Target less than 50% achieved

Environmental performance of the ULVAC GroupThe ULVAC Group consists of about 60 domestic
and overseas companies, each of which is committed toconserving energy and resources. We will continue to strive
to use resources effectively and conduct our businesses in anenvironmentally friendly manner.
Towards more efficient use of energy
The ULVAC Group promotes energy conservation at its
R&D and production sites. In FY2010, the group’s overseas

FY2011 environmental initiative target

We actively participated in exhibitions and trade fairs
and promoted our products. We installed photovoltaic
quick-charging systems on Yakushima Island and otherlocations. We also installed quick-chargers in various
locations, contributing to an approximately 20,000 kg
annual reduction in CO2 emissions

We gathered data on our equipment’s energy
consumption while in use and examined how to reducesuch consumption. We will apply our findings in our
products
We improved efficiency in usage of various target
materials and assessed our results with actual
equipment and systems. We are investigating further
efficiency improvements
We examined recycling of various target raw materials.
For some target materials, we established a procedurefrom the solution to the recycling stage
We successfully improved the efficiency of waste
recycling by reviewing the waste treatment methodin the Chiba area. We lowered the landfill rate in the
Chigasaki and Susono areas to below 3%
We improved the yield of long MoTi products. We willreflect the higher yield by reducing costs

Reducing energy
consumption of products
Energy savings
through production
processes andImproving efficiency inproducts
usage of target and processmaterials (gas)Recycling raw materials

80,000Cleaning Center

Environmental policy

0

2010

1,525

2010

Material balance (ULVAC Group)

OUTPUTINPUTN ULVAC (Suzhou) Co., Ltd.

Electricity usage

158,896,000 kWh

Production and sale of vacuum
equipment, devices, andcomponents in China
Cleaning Department,Suzhou Branch,
ULVAC (Shanghai)
Trading Co., Ltd.

ULVAC Group CSR Report 2011

The ULVAC Group and the Environment

Tang Jian-Ming, General Manager (center)
Zhou Ming-Hua, Deputy General Manager (left)
Wang Bin, Manager (right)

Gas usage
PG:
130 t
LNG:
746 t
City gas:
1,939 tsssFuel usagesss

Heavy oil: 1,178 KL
Kerosene:
69 KL
Light oil:
89 KL

Water usage

1,525,000 m3

Chemical
substances(PRTR-listed)

CO2 emissions

72,489t-CO2
275 t

Packaging

1,168 tCaused by use of electricity, gas, and fuelTotal waste emissions

7,586 tLandfill rate

7.2%

* This data is based on individual data from major Japanese production bases (19 sites), overseas
production bases (26), and R&D bases (4).
* Data for overseas production bases comes from 11 of the 26 such bases.
* Data for packaging is the total from 16 of the 44 sites.

ent
Environm

Environment

ULVAC Group Environment

Accolades for our contributions in reducing greenhouse gas emissions

TopicsRecipient of the first “Kanagawa Award for the Prevention of Global Warming”
ULVAC won the first “Kanagawa Award for thePrevention of Global Warming” in the Greenhouse Gas
Reduction Technology Development Category for ourdevelopment of a photovoltaic quick-charging systemfor electric vehicles. This award is given to enterprises,organizations, or individuals that have made excellent
achievements toward greenhouse gas reduction. In thiscase, ULVAC developed the first photovoltaic
quick-charging system in the prefecture and installed
the system in Chigasaki’s municipal parking area. The
award is in recognition of our efforts to develop
charging infrastructure for electric vehicles andpromote the use of natural energy.

At the first awards ceremony, 10 companies
received an award in the Greenhouse Gas Reduction
Performance Category while 5 companies received anaward in the Greenhouse Gas Reduction Technology
Development Category.
ULVAC entered the contest
upon the recommendationof Chigasaki City and was
the only winner amongthe 15 winners to berecommended by a public
Director Yamamoto (left) receiving theinstitution.
award from the then governor of
Kanagawa Prefecture

Saving electricity with renewable energy: solar and wind power
Developing a battery charging station for power-assisted bicycles
ULVAC developed and launched the Hybrid Cycle
Pit, a battery charging system for power-assisted
bicycles that integrates a small wind power generator,
a solar power generator, and a battery charger.
The system’s lithium-ion secondary battery makes it
possible to offer 24-hour charging service using only
clean energy (no commercial power supplies arenecessary). The system can charge the batteries of up
to 5 power-assisted bicycles at once, and as many as 10
bicycles per day. The electricity stored in the secondary

battery can also be used as emergency power.
The ULVAC Group will augment our productdevelopment efforts and business activities in order torealize a sustainable
society using clean,renewable energy.

In July 2011, a ceremony to mark the openingof the Hybrid Cycle Pit was held in Chigasaki
Park in Chigasaki City, Kanagawa

A distinguished natural heritage with a quick-charging station
Installing an electric vehicle quick-charging station with a power storage function on
Yakushima Island, a World Natural Heritage SiteULVAC installed an electric vehicle quick-charging
station with a power storage function in the parking
area of Kurio Beach in Yakushima Town, Kagoshima
Prefecture. This system generates power using a
combination of solar panels (5 kW) and a commercial
power supply, storing the generated power in alithium-ion battery. Its quick charger is capable ofcharging the batteries of electric vehicles to up to 80%of their full charge capacities in about 30 minutes.
This station can also be used as an emergency
power system in the same manner as the battery
charging station for power-assisted bicycles (above).
To accommodate foreign tourists to Yakushima

ULVAC Group CSR Report 2011

Island, the charging service is made available in four
languages (English, Chinese, Korean, and Japanese).
ULVAC hopes that this charging station will help
reduce CO2 emissions and conserve the island’s richnatural environment.

Electric vehicle quick-charging
station with a power storage function

The ULVAC Group and the Environment

The monitor offers a choice offour languages

Chemical Substance Management
The ULVAC Group is committed to properly managing the various chemical substances used in the
research and development as well as production processes of products and parts.

Elimination of RoHS-Listed Substances
The ULVAC Group worked hard to eliminate
RoHS-listed substances from our procurement items andproducts with an initial deadline in 2006 and a second
deadline in 2008, but we were unable to fully achieveelimination before these deadlines. The third deadline
was set to June 2011.
By this time, we were able to raise the RoHS
conformity rate of our 1.6 million procurement items to
99.8%.
As for the number of products, however, 2,731
products (approximately 30%) conform to the RoHS
Directive.
The remaining 70% of non-conforming products
include many large devices composed of thousands ortens of thousands of parts. In some such non-conforming

devices, conforming parts account for 99.8% of all parts.
Unfortunately, we have yet to fully eliminate
RoHS-listed substances, but we will review our targets
and continue elimination efforts with our goal of passing
a healthy environment to the next generation.

Promoting conformity to RoHS of registered parts

Total
numberof parts
1,642,462

Parts not yet conforming to the
RoHS Directive
2,959 (0.2%)
Parts conforming to the
RoHS Directive
1,639,503 (99.8%)

Toward Proper Management of Chemical Substances
The Tsukuba Institute for Super Materials researches
and develops new materials, functions, and better
deposition processes. Consequently, it handles manykinds of chemical substances as well as nanomaterials,
such as carbon nanotubes.
To reduce the risks involved in the use and storage ofchemical substances, the institute collects MSDS* andother hazard and toxicity information as well as safety
information, assessing the risks of each research anddevelopment effort in advance. The March 11 Great East
Japan Earthquake was sufficiently large to destroy thewelds and wires of the tip-resistant fittings of thechemical storage cabinets, but the cabinets did not fall,
thereby protecting the stored chemical substances. I
believe this is evidence that the personnel responsible for*MSDS: Abbreviation of material safety data sheet. Such sheets contain information necessary forsafely handling chemical substances.

chemical substance management at each laboratory arestoring chemical substances using the most suitable
method for each kind.

The earthquake damaged
the earthquake-resistantfittings of this chemicalstorage cabinet.

Takahiro Nakayama,
Tsukuba Institute for Super Materials

tion
Organiza

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o
i
t
a
z
i
n
a
g
Or

Organization

ULVAC Group Organization

Personnel DataULVAC promotes work/life balance by continuously reducing hours of overtime work and encouraging
employees to take paid days off.
We continue to advance the hiring of people with disabilities, and as in the year before, we employed
more such persons than the law required.
Number of employees working in ULVAC Group companies [FY2010]

Organization

ULVAC

Japan group

China

Singapore/Malaysia

The ULVAC Group sets personnel policies andoffers a variety of talent development systems toenable our staff members to work to their fullpotential. This section features the voices of
employees, including people in charge of specificsystems, describing how these systems are used.

South Korea

TaiwanEmployment rate
(Persons)

3,000

ULVAC’s corporate philosophy includes a policy of maintaining a free and open culture. We believe that technologicalinnovation requires a free and level organization. ULVAC’s driving force is an environment that freely generates ideas
regardless of position or rank and where people are free to speak their mind.

The key to developing outstanding employees is knowing
how to foster a person who can foster others. ULVAC trains
its employees according to an annual plan adopted by ourTraining Committee.
To give an example, our top executives and other people
concerned, including those from Group companies, take partin our strategy study meetings where free discussion takes
ULVAC Group CSR Report 2011

The ULVAC Group Organization

1.88

1.89

1.82

1.56

Open and Dynamic Organizations Facilitate
Innovative Development

Developing outstanding employees

(%)

40

1.12

2,000
20

2,574
1,000

1,912

place on various issues, such as reviewing the nature of ourbusiness and medium/long-term strategy. By working
cross-organizationally across departmental boundaries,
participants look for and carry out solutions, a process whichteaches them strategic thinking with a multilateral approach.
Through discussions with executives and their senior
employees, young employees take an active part intheme-specific technology study meetings in order to learn
about different ways and styles of thinking.
Persons wishing to review the basics or study for anothertype of occupation are
offered a wide range oftraining opportunities throughessential basic education,
which young employees are
required to take.
We also offer diverse
training programs, such as a
newlystartedoverseas
training program aimed atdeveloping personnel withinternational mindsets.

Tomoyasu Suzuki
General Manager
Personnel Department

35

37

40

28

1,848

10

663

603

138

19

07.06

08.06

09.06

10.06

11.06

Percentage of men and women employees

Percentage of men and women in management positions

Women 7.8%
150

Women 2.4%
12

[FY2010] (ULVAC, non-consolidated)

Employees
1,912 total

Topics

1.0

0.5

140
0

2.0

1.5

30

0

In lieu of a performance-based wage system, ULVAC
maintains basic aspects of Japanese-style employment.
Employment practices such as a seniority system and lifetime
employment create psychological allowances for failure andencourage taking on challenges. Such practices also promotecollaboration among researchers and help them focus onteam achievements.
We use extremely simple seniority-based pay systems.
Although we conduct performance reviews, these do not
result in a significant wage differential. This is based on the
belief that excess competition within the company interfereswith teamwork, and that if we are to compete with anyone, it
should be someone outside.

Number of disabled
people employed(ULVAC, non-consolidated)

North America(Persons)

Organization

A culture of taking challenges, with no fear of
failureChanges in the number and percentage of
disabled people employed

0.0[FY2010] (ULVAC, non-consolidated)

Men 92.2%
1,762Management
positions
501 total

Men 97.6%
489

Young employees share their opinions with the president

President Suwa initiated informal meetings
between himself and young employees,
describing such meetings as follows: “Although
ULVAC regards itself as a level organization,
there seems to be a barrier between myself and the young
employees. I would like to remove that barrier and offer our
employees an opportunity to speak their minds.” Meetings areheld once per month and attended by those chosen from among
the young employees born in that month. Participants share dinner
in casual dress at an outside restaurant.
For most participants, this is their first experience to talk withthe president. These meetings have three rules: 1. Don’t state
non-constructive opinions; 2. Don’t purposely create antagonism;and 3. Don’t slander specific individuals. So long as participants
observe these rules, they may talk about anything they choose.
Participants ask various questions, including those on topics
such as business management and the president’s work as well asprivate matters. The president also asks participants manyquestions.
We have received many comments from attendees, such as“The meeting increased my motivation for working with President
Suwa” and “I picked up many useful tips on how to perform mywork.” The photos taken at these meetings are always full ofsmiling faces.
This program isvery much in line with
the ULVAC approach.
We plan to expand thisprogram to other areas
andcontinuetoimprove and conduct
these meetings.
Group photo taken at an informal meetingtion
Organiza

Organization

ULVAC Group Organization

A Workplace for Diverse Human Resources
For ULVAC to grow, we need everyone who works for us to tap their individuality and maximize their potential.
We support our workers and help advance their careers, whatever their situation.

Coming back from parental leave
My parental leave was initially scheduled
to end after one year, but I was unable tofind a daycare center that would accept mychild due to quota limitations, even by theend of the leave period.
I therefore applied for permission toextend my leave for approximately half ayear, so in total I took one and a half years ofparental leave. I am very grateful that I could
return to my previous work despite such along period of absence.
Since my husband lives by himself inYamagata on a job assignment, I have no
choice but to take leave when my child issick, causing a great deal of inconvenienceto the other members of my division.
However, my managers and colleagues are
all very encouraging and I am thankful towork in such a pleasant environment.
I am currently using the short working
hour system, which means that I will beworking on a limited schedule for sometime. Despite these limitations, I am working
toward my full potential as a member of
ULVAC in order to achieve successful resultsin the most efficient way possible.

Maiko Gondo,

Tsukuba Institute for Super Materials

Sign language as a means of communication
I held sign language training sessions
every Wednesday after work for employeesinterested in sign language.
Although at first the participants haddifficulty in learning sign language, they
memorized terms and expressions one byone.
I was deeply impressed and pleased withthe participants’ sincere attitudes and theirserious efforts toward learning sign language.
Now that the four months of training sessions
are over, I miss them very much.

Sign language is not just for people withhearing impairments.
Sign language can be used on manydifferent occasions, such as whencommunicating with a person standing on
the opposite platform or for having a
conversation while diving in the ocean.
I would like to provide many more people
with opportunities to learn sign language.

Yasuhiko Iwamoto,

Procurement Center

Skills training in China
I have often been to China on businesstrips. This time, I was invited by our groupcompany in Shenyang, which manufactures
heat treatment equipment. I have thus beenworking in China as a leased employee forthree years. I am in charge of general
education and training for matters related to
products, including manufacturing, assembly,
environmental policies, and safety. Due tocultural differences, sometimes it is difficult
for me to provide effective training. But asfor daily life, home is where you make it, andULVAC Group CSR Report 2011

I am enjoying my life here in China without
suffering any serious inconveniences.
Although the company I am working forhas a long history of manufacturing devices,
it still needs to learn many things about
newly developed equipment. I think there
will be plenty of work for me to do in China
while I remain in good health.

The ULVAC Group Organization

Toshiharu Ishikawa,

ULVAC Vacuum Furnace (Shenyang) Co., Ltd.

Training for new employees
I was concerned when I started working
because I had no experience using vacuum
equipment as a student. ULVAC’s new
employee training program is composed ofthree major parts: lectures, training at the Fuji
Susono Training Center that focuses onpractical exercises, and on-the-job training in
our assigned positions. I learned aboutvacuum technology through lectures anddeepened my understanding by actuallyoperating equipment during the exercise
training sessions.
I am currently receiving on-the-job

training and working on various tasks withthe help of my senior colleagues. At ULVAC,
even new employees are allowed to do tasks
independently, which gives me a sense offulfillment every day. The new employees are
all friendly with one another. Many of them
are also very eager to improve themselves andalways inspire me to learn more about mywork. I do not have much time left before
completing my training, but I want to strive tofully develop my potential by effectively using
the limited time I have.

Aki Tonosaki,Materials Division

Serving as a bridge between India and JapanULVAC’s greatest advantage lies in its
willingness to take on new challenges and a
new knowledge. In order to achieve thesegoals, we must remain firm in ourcommitments. In other words, we needstrong resolve to never give up until we
succeed.
Since I joined ULVAC, I have learned
many things about the unique professional
approach of Japanese companies throughon-site communication with my colleagues. I
consider my experience at ULVAC a pricelessasset. My work developing mutual
understanding by talking with Japanesepeople has strengthened my desire to serve asa bridge between India and Japan to makethe most of my international experience.

Biswas Ramkrishna,

Sales & Marketing Planning Department

Supporting Physical and Mental Health
Health Promotion Office Initiatives
ULVAC’s Health Promotion Office has implemented three measures to promote mental
health. First, we offer an internal desk for employees to seek advice regarding physicalillnesses and other issues, and provide consultation services. In FY2010, we received
approximately 60 requests for such services. Second, we provide self-care training to new
employees as well as training for managers to help them promptly detect stress-related
psychological issues among their subordinates. We have also started sending occupational
health staff to division meetings to provide health training. Finally, we support employees onleave by providing periodic consultation services through occupational health staff from theperiod of leave through their restarting work so that they are able to recover from the illness
and return to work without suffering a relapse. In FY2011, the Health Promotion Office aims
to provide even more opportunities for training as well as to improve the training content.
To support employees’ physical health, we are working to provide thorough follow-up
health care based on medical examination results. In the past, our work has been focused on
conducting interviews with employees for whom treatment was deemed necessary based on
medical examination results and recommending to such employees that they receive
treatment at hospitals. However, thanks to an increase in the number of occupational healthnurses in our Health Promotion Office, we have been able to develop a health care guidancesystem aimed at preventing future lifestyle-related diseases. In FY2010, our new service
handled approximately 30 cases. We will continue to work to raise the health awareness ofas many employees as possible. In FY2011, we also plan to perform sleep apnea syndrome
screening tests in order to improve work performance by promoting sound sleep with thehelp of the ULVAC Health Insurance Association.

Tomisato Plant terrace (resting space for employees)

Tomo Nakao,

Occupational physician, Health Promotion OfficetionOrganiza

Organization

ULVAC Group Organization

Global measures for overseas business expansion

Occupational Safety and HealthAmong the ULVAC Group, “Safety First” is an ideal built into our Basic Philosophy of business operations,and as such we endeavor to secure safety both in our work environment and in products and services for our customers.
We run our own occupational safety and health management system (OSHMS)* (hereinafter,“Safety Management System”), which focuses primarily on risk assessment, to create an ideal environment.

Development of a safety management system— To ensure the safety and health of our customers andemployees
To realize our basic policy for Safety Management
System, ULVAC is striving to the utmost to focus on
occupational safety and health activities. The number of
product accidents at our customer sites has decreased by
90% in comparison with the FY2002 level. However, thenumber of occupational accidents in our plants has
continued to oscillate without showing signs ofimprovement; we must break this cycle. To this end, we
conducted risk assessments for the first time last year andevaluated the risks using a scoring system in which lower
scores indicate smaller risks.
Assessing risks based on an
objective standard has enabled
us to make improvements. We
have also tried to ensurecompliance with safety rules andimplemented punitive measuresfor violating such rules in order
to assure and face safety more
seriously by establishing thisTakeo Kato,system.
Director and General Safety

As a result of these measures, we saw a decreasing trend
in the number of work accidents in FY2010. We will implement
these measures continuously throughout the entire ULVACGroup.
ULVAC suffered serious product losses in the Great East
Japan Earthquake; however, there were no casualties. We are
currently reviewing our disaster prevention measures forinundations caused by tsunami waves and river flooding.
ULVAC Safety Management System (OSHMS)ULVAC Basic Policy of Safety & Health System

By setting "Safety First" as our basic philosophy, we will introduce aoccupational safety and hygiene management system to secure the safety andhealth of all employees and users of ULVAC products and services under theslogan "Healthy ULVAC."
To do this, we will implement:
1. Compliance with codes and regulations as well as implementation of risk
assessment
Comply with the Codes for Occupational Safety & Health Management as wellas the Rules according to ULVAC's OSHMS. Conduct Risk Assessment in order toperform Occupational Safety & Health Management activities with the help of all
employees.
2. Safety assurances for ULVAC products
Comply with ULVAC's standard for safety design and perform risk assessment ofour products in order to deliver safe products and services to our customers.
3. Scheduled training on ULVAC's Safety Management system and Product Safety
For all of our employees and contractors’ employees, perform Occupational
Safety & Health training based on the ULVAC Safety Management system while
offering scheduled Product Safety training for our users.
4. Global expansion of the ULVAC group
Through the Safety & Health promotion activities conducted by the Global Safety
Management Committee, we will try to create an appropriate work environment
for the whole ULVAC group and contribute to the prosperity of our businesses.

and Health Manager

Established on July 1, 2011
Hidenori Suwa, CEO, ULVAC, Inc.

ULVAC Safety Organization
President and CEO(OSHMS Committee Chair)

General Safety and Health Manager

OSHMS organization(representative of OSHMS Committee Chair)

Corporate Safety &Health
Department (organizer)
President’s instructions, system review
Safety Management Committee(company-wide OSHMS)
Committee chair:
President and CEO
Committee chair representative: General Safety
and Health Manager
Committee members:
division managers

Opinions of workers reflected

Organization under Industrial
Safety and Health Act

Safety and Health Committee
Safety and Health Committee members: union
representatives, company representatives, industrial doctor

Thanks to various preventive measures, FY2010 saw adecrease in the occupational accident rate. In particular, as aresult of strict enforcement of a rule to wear protective glasses,
we succeeded in completely eliminating eye-related accidents
during work, which had occurred frequently until last year. Basedon our Safety Management System, we will strengthen punitive
measures for violating safety rules, allocate work supervisors
more appropriately and improve our safety education programfor subcontractors in order to eliminate occupational accidents
throughout our group companies.

Product safety
In FY2010, the product accident rate decreased by half incomparison with the FY2009 level. The rate has continued todecrease annually as a result of various measures taken since
FY2003. Based on our product safety system, we will continue to
conduct risk assessment of ULVAC products and will improve ourbasic education program on product safety standards on a global
level for all employees engaged in processes, from manufacturing
through to the handling of products, in order to eliminate
product-related accidents.

Emergency life-saving initiatives
To improve our employees’ skills and awareness of
emergency life-saving techniques through in-house training, we
installed a total of six AEDs in the ULVAC Chigasaki Head
office/Plant.
This year, at our group company adjacent to the Chigasaki
Head office/Plant, there was a case that required emergency
treatment. We were able to save the employee’s life through theproper use of one of the AEDs installed at the plant. The groupand security company employees stationed at ULVAC who
administered the emergency treatment were awarded acommendation from the Chigasaki City Fire Department.

Health Officers

Chemical Substances
Management Committee
Chemical Substance Managers

Safety Management
Promoters
Safety Promotion
Committee members

Specialty Gas Safety Committee
Specialty Gas Committee members* Occupational Safety and Health Management System (OSHMS): A system for systematically managing occupational safety and health

The ULVAC Group Organization

Trends in product accident counts/occupational
accident rates
Occupational accident frequency ratio
ULVAC

All industries

Manufacturing industries

Electric devices
Frequency ratio
2.5

Machinery

Manufacturing equipment
and devices

2.0
1.5

1.57
1.75

1.0
0.78

0.5
0.0

07.06

0.69

08.06

Voice

0.64

09.06

11.06

10.06

* Data for years 2008 and later is based on the Japan Standard
Industrial Classification (revised November 2007).

Until FY2007, our reports provided data only for our Chigasaki Plant, but reports
since FY2008 cover all ULVAC’s sites and branches.
Also, in accordance with changes to industry classifications, we used data for the
production machinery and equipment manufacturing industry to make thecomparisons for years 2008 and later. In FY2010, the occupational accident rate
decreased by approximately 60% in comparison with the previous year.

Trends in the number of occupational accidents
among group companies
Group as a whole
TaiwanFrequency ratio
1.14
1.20

Japan

China

North America

South Korea

Southeast Asia

1.04

1.04

1.04

08.06

09.06

10.06

1.01

1.00
0.80
0.60
0.40
0.20
0.00
07.06

11.06

This graph shows the number of occupational accidents by country or region,
expressed as ratios to the number of occupational accidents for all ULVAC Group
companies in FY2005. In FY2010, the number of accidents decreased in comparison
with the previous year in Japan and South Korea, but increased in China, Taiwan, andother areas, consequently remaining at the same level for the ULVAC Group as a whole.

Trends in product accident counts ratio
Accident counts ratio
120
100
80
60

55.9

65.1

61.0
43.4

40

22.2

20
0

05.06

06.06

07.06

08.06

09.06

20.2

10.06

10.6
11.06

This graph indicates the number of product accidents per unit of sales (ULVAC,
non-consolidated). (Rates shown on the line are relative to FY2001, which is indexed as100.) The number of product accidents for FY2010 decreased by half in comparison
with FY2009.

Safety Management Committee
Health Management Committee

Safety Management Promotion
Conference (division OSHMS)ULVAC Group CSR Report 2011

Labor safety

Safety Officers

Floor Safety and
Health Managers

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

The ULVAC Group has expanded rapidly in recent years, and
our General Safety and Health Managers continue to conduct
high-level patrols at our group companies during this time ofstrong growth. We believe it is important to provide direct
guidance on safety to our group companies’ local employees
through these patrols as well as toenhance their safety awareness.
Patrols are conducted mainly invarious parts of South Korea, Taiwan,
and China. We place our highest
priority on China, where our businessexpansion has been particularly rapid.
High-level patrol in China

Interview with an Environmental Safety &Health Department trainee, ULVAC KOREA, Ltd. (UK)My name is Park Sung-Woo and I work at the UK Environmental Safety & Health
Department. During my three-month training at ULVAC’s Corporate Safety & Health
Department, I participated in patrols and meetings on occupational safety in order to better
understand ULVAC’s safety management operations. I was particularly pleased for the chance to becomeacquainted with other ULVAC employees.
Park Sung-Woo
Environmental Safety &Based on what I learned through my training experience in Japan, I will do my best to
Health Department,
improve safety in ULVAC KOREA after returning to South Korea.
ULVAC KOREA, Ltd.

tion
Organiza

Organization

ULVAC Group Organization

Scholarship donation — ULVAC KOREA, Ltd. —As part of its scholarship program, ULVAC KOREA, Ltd.
offers scholarships through corporate citizenship initiatives
twice per year (in May and November) to Cheongbuk Middle
School and Pyeongtaek Mechanical and Technical HighSchool in Pyeongtaek, South Korea.
ULVAC KOREA began offering scholarships toCheongbuk Middle School in May 2004 and to Pyeongtaek
Mechanical and Technical High School in November 2006.
The company has provided a total of 67 million won inscholarships to 200 students.
ULVAC KOREA plans to increase the amount ofscholarships awarded in 2011 so that more students may
make effective use of the scholarships in their studies.
In September 2010, the company was awarded atestimonial by the presidents of Cheongbuk Middle School
and Pyeongtaek Mechanical and Technical High School. We
will continue our efforts to contribute to society.

“Providing educational opportunities to children
greatly contributes to the future.”“We wish to make ULVAC better known
through dialogue with local
community residents.”
Plant tour program

ULVAC conducts plant tours primarily for local publicorganizations. In FY2010, a total of 357 people from 13
organizations participated in tours at the ULVAC Chigasaki
Plant. We will continue to create opportunities for local
community residents to deepen their understanding of
ULVAC through plant tours and will take an active part inholding dialogues with residents.

“A local community team, we stand in thesame field to contribute to society.”

As a CSR partner of the local J. League
team, Shonan Bellmare

Global Corporate
Citizenship Initiatives

This is the second year ULVAC and Shonan Bellmare
have been connected through CSR partnership.
Shonan Bellmare performs all types of social
initiatives, and ULVAC is proactively joining the team in
CSR initiatives that are particularly relevant to thecommunity.

with innovative,
the growth of industry and science
to
g
utin
trib
con
of
phy
oso
phil
e
Based on its corporat
gical innovations globally and
AC Group provides unique technolo
cutting-edge technologies, the ULV
nologies and human resources.
social problems by using ULVAC’s tech
ous
vari
ing
solv
for
es
ativ
initi
ents
implem“Many small acts of charity eventually generate great power.
We will continue our activities to spread such power
throughout the world.”

The ULVAC Group Organization

through Shonan Bellmare

Tanbo (rice field) Project
Support for local health carefacilities — ULVAC KOREA, Ltd. —ULVAC KOREA, Ltd. implements a wide
range of corporate citizenship initiatives. Of
particular importance are the activities started in2009 by the Charity Service Association, whichis composed of volunteers gathered fromamong the employees of the ULVAC Group
companies in South Korea. In FY2010, membersof the association visited local health carefacilities in order to clean, serve food, and help
make arrangements for a picnic in the suburbs.
We will continue our efforts to support local
communities through corporate citizenshipactivities and will actively promote environmental
conservation initiatives.

ULVAC Group CSR Report 2011

* See page 8 for a report on ULVAC’s earthquake relief activities

The Tanbo (rice field) Project, which was popular both insideand outside the company in FY2010, kicked off in 2011 with aplanting event on May 28.
In Namegaya, Chigasaki City, where the rice is cultivated,
there remain to this day unused rice paddies as well as
traditional landscapes. We plan to grow corn, peanuts, green
soybeans, sweet potatoes, and other crops in these fields as a
new experiment in the area’s natural environment. We will also
expand our communication network with the local community
in collaboration with Bunkyo University.
In addition, we will provide a program for veterans* thisyear so that participants can begin to understand the difficulties
and benefits of cultivating rice by growing rice from scratch.
* Program for veterans: A program for 2010 program participants who haveapplied to participate for a second full year

“The first step toward solving
environmental problems is to understandnature’s importance.
ULVAC conveys the importance of bothnature and communicating through its
Tanbo (rice field) Project.”tion
Organiza

Organization

ULVAC Group Organization

one-on-one investors and analysts in Japan and abroad. We
keep our regular information up to date by posting timely

IR Communications

settlements of accounts and management information on
our website.

ULVAC endeavors to promote communication with and provide information to Japanese and overseas shareholders and investors
by leading tours of our plants in Japan and those of our affiliates overseas and holding one-on-one meetings with investors.

Promoting IR in response to changing
business conditions to smooth investor
communication
Since our listing on the First Section of the Tokyo Stock
Exchange in April 2004, ULVAC’s practice of active IR has
focused on Japanese institutional and one-on-one investors
and analysts. During that time, as a result of proactive
business investments in South Korea, Taiwan, and otherdeveloping countries, ULVAC’s overseas sales have continued
to increase and now comprise approximately 60% of our
total sales for FY2010. Moreover, the structure of our sales
has shifted from primarily FPD production equipment toenergy and environmental (including solar cell) production
equipment. Against this background, owing to rising global
environmental awareness, overseas institutional investors arekeenly interested in our company, and the percentage of ourshares held by non-Japanese investors is about 24% (as ofJune 30, 2011). For this reason, we now distributeinformation to overseas institutional investors and holdoverseas information sessions by conducting direct visits as
occasions demand in order to make sure overseas investors
have up-to-date information.

Periodic overseas IR initiatives
We hold one-on-one meetings with institutional investors
each year in Singapore and San Francisco. The San Francisco
meetings are scheduled to coincide with SEMICON West andIntersolar North America, the international exhibitions thatdraw visitors from all over the United States as well as South
Korea, Taiwan, and Japan. This way, we can hold a large
number of one-on-one meetings, making our IR more
efficient.

Periodic IR conferences for foreign
institutional
investors
TULVAC takes partin large-scale conferences
held by a securities
company thrice per
year in Japan. Several
hundreds of institutional
investors from all over
the world come together

Overseas IR meeting

ULVAC Group CSR Report 2011

The ULVAC Group Organization

for the conferences and one-on-one meetings as well as todeepen their understanding of ULVAC. We also actively
participate in technology conferences and other events held
as occasion demands in order to present our cutting-edge
technologies.

Timely information by telephone, videoconferencing, and conference call
We value one-on-one meetings with institutional
investors, but we also make full use of telephone, videoconferencing, and conference calls to communicate in atimely manner.

A new system for actively promoting public relations,IR, and CSR activities

Message

We established a Corporate Communication & IR Team in FY2011 to create a new
system.
Our Corporate Communication & IR Team has been given the role of providing
up-to-date information about ULVAC’s business, including our corporate finance and growth strategies, notonly to institutional investors in Japan and overseas but also to one-on-one investors and all of our
stakeholders. We also incorporate CSR into this work in order that we may organize activities by integrating
the roles of public relations, IR, and CSR.
Takayuki Usumi,
We will continue to provide timely information to our investors
Senior Manager, Management
Planning Department,
and other stakeholders and strive to our utmost to maintain
Corporate Communications & IR Team
goodcommunication with our investors.

Stock Position (as of June 30, 2011)
Plant tours at ULVAC overseas affiliates
ULVAC is actively moving into South Korea, Taiwan,
China, and other developing countries to manufacture there,
and along with this our rate of local procurement is rising
rapidly. We have two plants that manufacture FPD
production equipment in South Korea and one plant that
manufactures semiconductors and electronic parts
production equipment in Taiwan. Also, in China, we haveeight plants, including plants that manufacture LEDs as wellas other electronic parts production equipment, heat
treatment furnaces, and other industrial equipment inaddition to vacuum pumps and parts. These are active
manufacturing bases, providing a foundation for ULVAC’s
further growth, so we are eager to offer tours for institutional
investors at these plants.

Improving content inEnglish versions of annual
report and website
Even before our stock exchange
listing, ULVAC was already producing
an annual report in English to provide
information for overseas investors.
Our English-language website provides
even more information with postingsof our financial results summaries inEnglish (in excerpt form) andpresentation materials.
ULVAC conducts a wide range ofIR activities for institutional andTotal number of issued shares:
49,355,938 shares

Total number of issuable shares:
80,000,000 shares
Major shareholders
Name of shareholders

Number ofshares inpossession(1,000 shares)

Ratio ofvotingrights (%)

TAIYO FUND, L. P.

3,936

7.98

Nippon Life Insurance Company

3,242

6.57

Mizuho Bank, Ltd.

1,916

3.88

Sumitomo Mitsui Banking Corporation

1,864

3.78

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

1,734

3.51

Japan Trustee Services Bank, Ltd. (Trust account) 1,727

3.50

Association of Employee Shareholders of ULVAC 1,257

2.55

State Street Bank and Trust Company

2.41

Number of shareholders:
25,353

Percentage of non-Japanese shareholders
(%)
30
25
20
15

23.8

10

1,188

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

910

1.84

Inabata&Co.,Ltd.

795

1.61

8.5
5
0

1.6

1.6

3.1

02.06

03.06

04.06 05.06

16.8

06.06

17.3

15.8

12.2

07.06

08.06

09.06

14.7

10.06 11.06(Note) Percentage ownership is calculated after deducting
treasury stock (2,875 shares).

Distribution of shareholders
by number of stock units (Shareholders)
0 to 2

15,4833 to 96,207

10 to 99

3,333

100 to 999

272

1,000 to 4,999

43

5,000 or more

14

* 1 stock unit: 100 shares
IR information presented on theofficial ULVAC website

Treasury stock: 1 person

Distribution of number ofshares by category1%0%Financial institutions

13%

25%

Total
25,353

61%(Shares)
16,135,320

Individuals and others

15,185,186

Foreign-based corporations

11,702,574

Other domestic corporations

5,339,174

Securities companies

938,106

Foreign individuals

52,603Governments

100
Treasury stock: 2,875 shares

2%

0%

11%

Total
24% 49,355,938
shares31%

32%

t
CSR Managemen

CSR Management

ULVAC Group CSR Management

Compliance with Laws and Regulations via theCompliance Violation Reporting System

Corporate Governance
The ULVAC Group regards corporate governance to be one of the most important issues for business operations.
We aim to conduct highly transparent and fair business operations that reflect prompt management decisions.

ULVAC’s Management Structure

Operational Structure

ULVAC regards fairness, neutrality, and transparency asvital for business operations. Accordingly, our 17-member
Board of Directors includes two external directors, and thefive-member Board of Corporate Auditors includes threeexternal corporate auditors. The Board of Directors meets as
required to maintain momentum, in addition to the regularmonthly meetings. The corporate auditors have establishedclose ties with the Internal Auditing Division and also withindependent auditors, while maintaining the necessary
objectivity for closely overseeing the business structure.
ULVAC’s business structure has been configured to allow
prompt management decision-making, while maintaining
sufficient monitoring functions.

ULVAC has established a Board of Standing Directors andAuditors to supplement the Board of Directors, to enable
prudent examination of key business matters when
conducting operations. Meetings of the Board of Standing
Directors and Auditors are held twice a month on a regularbasis, and additional ad-hoc meetings are held as required,enabling prompt management decision-making. The corporate
auditors participate in all important company meetings
including those of the Board of Standing Directors andAuditors, so that they can impartially express their opinions
and conduct monitoring activities.

As of June 30, 2011

ULVAC
Management Structure
General Meeting of Shareholders
Appointment

Appointment

Appointment

Board of Corporate Auditors

Board of Directors

2 Corporate Auditors
3 External Corporate Auditors

Audit

Accounting
Audit

Independent Auditors

15 Directors
2 External Directors

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

President and CEO
Board of Standing Directors
and Auditors
Group Council of Presidents

All Divisions
Group Companies

Internal
Audit

Internal Auditing Division

CSR Report 2011

ULVAC Group CSR Management

If, as the result of an investigation, the Compliance
Committee finds that laws and internal regulations are being
violated, action is quickly taken to put a stop to the act
causing the violation. Penalties are imposed on those
involved in the violation, and adequate penalties are imposedin the case of serious violations after examination by the
Disciplinary Committee. In addition, the fundamental causesthat 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 to achieve even greater corporate value.

Creating a Risk Management System
The ULVAC Group believes that expanding the risk
management system is a critical business task. Thus, we haveestablished the ULVAC Risk Management Policy to ensurethat there are common rules across the ULVAC Group. The
President of each group company assumes the position ofChief Risk Officer and shares risk information with related
departments. Important information is promptly conveyedfrom the President of each group company to the Presidentof ULVAC, Inc.

As the supervising organization for risk management, theCommittee meets twice a year to set out basic policies andimprove the management and operation.

Risk Management System

employees a booklet that describes the content of this code.
The booklet helps employees to act in compliance with thelaw as a representative of our business.

ULVAC has classified a wide range of risks, and has set up
departments responsible for each of them. Each department
functions as an information center that works with related
departments to identify and evaluate all specific risks. In
addition, the responsible departments constantly collect risk
information, respond appropriately to risks and detect issues.
For risk information deemed to be important in theevaluation process, we continually collect information to
enable prompt responses to emergencies. A Risk
Management Committee, chaired by the President andcomprised of the departments responsible for the risks, hasalso been established to verify the risk management system.

ULVAC, Inc

ULVAC Group companies

Chief Risk Officer =President and CEO

Chief Risk Officer =President and CEO

Risk Management
Committee(Controls entire
business risks)

Risk
Control
officeRisk
Control
officeRisk
Control
officeReporting and instruction
for improvement

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

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

Dealing with Acts of Violation

ULVAC Risk Management System

Compliance

Establishment of a Corporate Code of Conduct

ULVAC has developed a Compliance Violation Reporting
System to minimize the effects of any violations of laws andregulations. The contact point for the Compliance Violation
Reporting System is the Internal Auditing Office that serves as
the secretariat of the Compliance Committee, the internal
compliance investigation division. To facilitate the use of theCompliance Violation Reporting System, the independenceof the office’s activities is ensured, and anonymous
information is accepted. Moreover, the President and generalmanagers of each department serve as members of theCompliance Committee to ensure prudent examination
while assuring the fairness of internal investigations. Eachmember is required to maintain strict confidentiality, and tooperate the system so that reporters and investigators are nottreated detrimentally. In this manner, internal investigations
are carefully conducted; numerous interviews are held withboth internal and external parties, and attorneys attend any
cases requiring their expertise.

Risk Management
Committee

Risk
Control
officeRisk
Control
officeRisk
Control
officeControl Office shall be established by categorized risk.
Risk management activities are implemented by the responsible
departments through the PDCA processes.
s Each group company decides upon the necessity of establishing its Risk
Management Committee in consideration of its size and other factors.
s