Casio Computer Co., Ltd.
www.casio.com
For inquiries on CSR in general:
CSR Operations Section
Casio Computer Co., Ltd.
1-6-2 Honmachi, Shibuya-ku, Tokyo 151-8543
Tel.: +81-3-5334-4901 Fax: +81-3-5334-4547
E-mail: csr-report@casio.co.jp
For inquiries on environmental issues:
Environment Center
Casio Computer Co., Ltd.
3-2-1 Sakae-cho, Hamura-shi, Tokyo 205-8555
Tel.: +81-42-579-7256 Fax: +81-42-579-7718
E-mail: eco-report@casio.co.jp
Published: October 2009

Message from the President

By constantly focusing on “Creativity and Contribution,”
Casio will continue to be an enterprise that meets
social needs.

Since the autumn of 2008, the global economy has been
mired in a “once-in-a-century recession.” Some of thebiggest corporations in the world have collapsed, whileothers survive only because of government support.
What we used to take as a given, no longer holds true.
What once counted as assets, has now become deadweight. Perhaps we have reached a turning point in history.
Perhaps it is time for us to determine what to hold on to, andwhat to discard. I believe it is time for us to make a breakwith the management style of the 20th century.
We often say in Japanese that “in every pinch, there lies achance.” This does not mean that anyone who just muddles
through from day to day will come roaring back once thecrisis has passed. Rather, only those who keep fighting
through adversity will be ready to seize the chances thatcome their way.
“Creativity and Contribution” has been Casio’s corporate
creed since the beginning.
Casio went into business in 1957 after we developed theworld’s very first compact, fully electric calculator, the 14-A.
In 1972, we developed the Casio Mini. All calculators
prior had been used for business, but this was the first thatwas easily affordable for ordinary consumers. The Casio Mini
made the personal calculator a household item aroundthe world.
The digital watch that Casio created in 1974 displayed
the full range of information relating to “time,” including acalendar. In addition, the watch was built from a plastic
material that was both lightweight and strong. The productwas an instant worldwide success.
Casio then launched an electronic keyboard in 1980 thatwas capable of digitally synthesizing the sounds of all kindsof musical instruments and made it easy for people to playmusic. It represented the birth of a whole new genre ofmusical instrument.
In 1981, Casio came out with an electronic dictionarythat incorporated many different types of dictionary functions
all into a single palm-sized device. These are now foundvirtually everywhere, and schools, in particular, have come tosee them as indispensable to their educational mission.
Casio introduced the first digital camera with a screen in
1995, enabling users to check images instantly after taking
them, and to keep only the good ones.
Not letting up, in 2002 we launched the ultra-slim EXILIM
series of “wearable card cameras” that users could carry
anywhere and use anytime, so that no photo opportunity
would ever get away. This trailblazing product marked the
beginning of the compact digital cameras seen
everywhere today.

01 Casio Corporate Report 2009

Time and again over the years, Casio has developed
products with value of a sort never seen before. We havecreated entirely new markets, giving birth to lifestyles andgems of culture that people today have come to take for
granted, so total is their integration into modern life.
I say all this to explain what we mean by “Creativity andContribution.” It’s been quite a story—and one of which
we’re very proud.
Now we find ourselves in the midst of an economic
recession that is impacting Casio’s business. But we havealways stuck with our corporate creed through thick andthin, continuing to develop new products even in the worst oftimes. Today, we continue to devote every available resource
to generate new demand and create new markets. We do it
because I believe this is the way forward, and the only way toconvert a “pinch into a chance.” We know what it takes torun our business stably, profitably, and sustainably, and thatis exactly what we intend to do.
At the same time, however, we cannot ignore the factthat we conduct our business in a finite world. Limitless
growth is not a possibility if we stick with the status quo. The
task of protecting the global environment cannot be put off
any longer, and it is imperative that we examine the rolebusiness must play in that undertaking.
It goes without saying that we must do our part ineveryday environmental preservation activities, but in addition
we have unique technological strengths that can help make adifference. Both our products and the manufacturing
processes that we use to turn them out can be designed tominimize environmental impact. The global community is
calling upon us to address other pressing problems, as
well—human rights, poverty, and employment stability, toname a few. We are hard at work on all these fronts.
Going forward, Casio will seek through these activities
to win trust and continue to be the kind of company thatsociety needs.
This report has been prepared to help Casio’s
stakeholders easily understand what the company is doing
to fulfill its social responsibilities. We thank you fortaking the time to read the report, and look forward to
your feedback.

Kazuo Kashio
President & CEO
Casio Corporate Report 200901

Contents
Message from the President ............................. 1
Contents / Editorial Policy ................................. 2
Highlight 1
Going from “0” to “1” to Create New Valuein the Digital Camera Market ......................... 4
Highlight 2
Defining Environmentally Innovative
Craftsmanship ............................................... 6
Casio Business Overview by Category ............. 10
Casio’s Corporate Creed andApproach to CSR .............................................. 12............................... 13■ Casio’s Business Activities● Development/Design ................................. 14● Procurement/Production/Logistics ............ 20● Sales/Service ............................................. 26● Business Support ....................................... 30■ Management
Corporate Governance .................................. 32
Compliance and Risk Management .............. 33■ Environmental Management
Environmental Management Policy ............... 36
Initiatives to Build a Low-Carbon World ........ 38
Environmental Awareness in
Product Development .................................... 41
Environmental Action Plan ............................. 43

Editorial Policy
The Casio Corporate Report was first published in
2006, when the previous Corporate Social
Responsibility Report, which detailed Casio’s social
contribution and environmental activities, and theprevious Corporate Profile, which covered Casio’s
business areas and main products, were combined.
The 2009 edition of the Casio Corporate Report isdesigned to promote stakeholder* understanding of
Casio’s activities from various perspectives, byreporting on initiatives in each area of operations
from development and design, to procurement,
production, logistics, sales, and service.
In particular, the Highlights sections focus on two
topics: “Going from ‘0’ to ‘1’ to Create New Value inthe Digital Camera Market” and “Defining
Environmentally Innovative Craftsmanship.”Casio values your opinions about its CSR
initiatives, and treats them as guidance for thecompany’s future activities and reports. Please fillout the questionnaire available at the website
below to let us know your opinions, impressions
and expectations.

Company Data
(Data shown here forfiscal 2009, ended
March 31, 2009)

Environmental Communication ..................... 50■ Employee Satisfaction
Teaming with Employees .............................. 52■ Social Contribution
Social Contribution Initiatives ........................ 56
Casio’s Social Initiatives:
Action Plans and Performance .......................... 60
Independent Opinion of the Casio
Corporate Report 2009 ..................................... 61

02 Casio Corporate Report 2009

Headquarters: 1-6-2, Hon-machi, Shibuya-ku,
Tokyo, Japan

In recognition of the CSR efforts of Casio Computer
Co., Ltd., the company’s stock has been included in
the following indices for socially responsible
investment (SRI).

President & CEO: Kazuo Kashio

Dow Jones Sustainability Indexes Asia Pacific

Employees: 3,131 (consolidated: 12,358)
Paid-in capital: ¥48,592 million
Net sales: ¥518,036 million (consolidated)

Morningstar Socially Responsible Investment Index

Operating income: ¥4,016 million (consolidated)

Scope ofthe Report

http://world.casio.com/env/pdf/
report_2009/Casio_Questionnaire_E.pdf* Stakeholders: Customers, suppliers, investors, shareholders,
employees, local people, NGOs, NPOs, the public media, financial
institutions, researchers, the government and other related parties.

● PeriodThis report covers fiscal 2009 (April 1, 2008 to March 31, 2009), and also includes some
information pertaining to fiscal 2010.
● Issued
October 2009 (Previous publication: October 2008, next publication plan: October 2010)● Coverage
Some information in this report applies only to the parent company, Casio Computer Co.,
Ltd., while other material refers to the entire Casio Group. Further clarification is provided ineach case, as needed. The name “Casio” in this report indicates the Casio Group, while“Casio Computer Co., Ltd.,” refers only to the parent company. The scope of theenvironmental accounting and impact data in this report includes 10 sites of Casio
Computer, Co., Ltd., in Japan, 18 group companies in Japan, and 23 group companies
outside Japan.
● Guidelines Used as a Reference
Environmental Reporting Guidelines (2007 Edition) and Environmental Accounting Guidelines
2005 issued by Japan’s Ministry of the Environment, and Sustainability Reporting Guidelines
2006 of the Global Reporting Initiative (GRI).
Forecasts and Forward-looking Statements
The future forecasts and forward-looking statements published in this report for Casio
Computer Co., Ltd., and the Casio Group are based on information available at the timeof publication. These forecasts and statements include potential risk and uncertainty,
and the reader should be aware that the actual results of business activities may differ
from these predictions.

Material Balance ............................................ 44
Environmental Performance .......................... 45
Environmental Accounting ............................. 48
Environmental Management System ............. 50

SRI Indices

Established: June 1, 1957

Corporate Report questionnaire:
URL

Name: Casio Computer Co., Ltd.

■ Casio Corporate Report 2009 Reference Material (PDF only)
Data and reference material pertaining to the Corporate Report.

For more
information
Ref.

Reference Material

URL

http://world.casio.com/env/report/2009_data.html

October 2009

■ FY2009 Data by Operational Site (PDF only)
Environmental performance data for each operational site.
URL

http://world.casio.com/env/site2008/

Casio Corporate Report 200903

Understanding people’s unspoken needs andenvisioning the perfect product to meet them—thisis how Casio creates new demand. Beginning with
the QV-10, which created a whole new market for
digital cameras, the concept of going from “0” to“1” has guided Casio in every step it has taken to
innovate in that field. We asked Jin Nakayama, a
key developer of the QV-10, about the history of
Casio digital cameras, which have now embarked
on a third generation in 2009.

Casting off old notions, reappraising
accepted values
The QV-10, which created a new market for LCD digital cameras
for the consumer, first hit the stores in 1995. Getting it to market
was no simple matter, of course. A lot of trial and error was
involved in the process.
When we first set out to develop a digital camera, our initial idea
was to make more than just a camera. What we had in mind wasan LCD television that incorporated the functions of a camera. But
as we moved ahead with development, we decided to make apure camera that would provide a truly new kind of value to users.
We eventually got rid of the television functions altogether andfocused on enabling the camera to transfer images to a personal
computer, which by that time was becoming a household item.
The QV-10 emerged as a tool ahead of its time, ushering in themultimedia age.
I think Casio was able to come out with such an innovative
product because we didn’t simply see it as a variant of the
traditional film camera. The QV-10 had a fixed-focus lens, no flash,and produced images of 250,000 pixels. This meant that the QV10’s specs did not actually compare all that well against those of a

traditional film camera, but we were looking to create a totally new
kind of value that film cameras could not hope to offer. The idea
was for the user to be able to snap a photo and see the image
right away, which was an unprecedented convenience. And we
wanted to provide a convenient link to the personal computer,thereby creating a new “image culture” from scratch. The wholeprocess was a manifestation of the “0” to “1” concept that has
always been the Casio hallmark.

Pursuing the convenience that only adigital camera can provide
In launching the EXILIM EX-S1 in June 2002, Casio proposed to
the world the new concept of the “wearable card camera.” Manydifferent makers had entered the digital camera market by thattime, and all competed fiercely to provide the best performance.
Customers getting ready to make a purchase had a clear tendency
to compare cameras on the basis of number of pixels, which is aneasily understood measuring stick, but again, Casio was notcontent to be just another maker competing for the same old turf.
One clue to the development of the EX-S1 was that its design
was not at all limited by film camera design. People left home witha traditional camera only when they knew they would be taking
photos, but with the filmless digital camera, people could just carryit with them everywhere, always ready for a photo opportunity. It
was this line of thinking that led to the first-generation EXILIM
camera, which fit easily into the user’s shirt pocket. What is more,
the stylish compactness of the EXILIM has since become themainstream look in the digital camera market.

Refusing to be satisfied, in spring 2003, Casio introduced the
EXILIM ZOOM EX-Z3, which featured the most advanced specs on
the market at that time. Casio’s quest for new technologies andbetter functionality simply could not be stopped. I think this attitude
has propelled the continuing evolution of the EXILIM series.

High speed: the third breakthroughIn 2008, Casio kicked off a third generation of value creation in thedigital camera market with a breakthrough in high-speed
technology. Product development at Casio does not rely on merely
extending what we are already doing. Ideas are inspired by acreative vision of what products ought to look like 10 and 20 years
down the line. These days, we’re thinking that the camera of the
future ought to be shutterless.
The incorporation of electronics in cameras has led to a lot of
automation, including auto exposure and auto focus, but the
shutter still has to be pressed by the user. Unfortunately, however,
the act of pressing the shutter often makes the subject feel selfconscious, or the person taking the photo may not have a steady
hand. Also, many magic moments go unphotographed due todelay in pressing the shutter.
“You’ll have to settle for less. Cameras do have limitations.”
Others may feel that way, but at Casio we don’t think so. We cameup with high-speed photography as the new answer to problems
that many thought simply couldn’t be addressed. By making
shutter-pressing electronic, we allow the user to enjoy high-speed
burst photography to capture fast-moving photographic subjects
at 30 frames per second. Then, among the photos shot in burst

mode, the camera can automatically select the best-looking
photos, without blur or anyone’s eyes shut.
With a high-speed camera, you can catch a fleeting expression
on a child’s face, for example, or capture details that happen sofast that the unaided human eye cannot even see them. Casio
sees this as just another quiet revolution, and we plan to make it astandard feature of all of our digital cameras.

Moving images bring entirely new creative fun
to the digital camera
Dynamic Photo is another new Casio function that allows the user
to cut and paste moving images onto a still background image. We
hope to see both everyday folks and professional photographers
using Dynamic Photo to create an entirely new type ofphotographic culture.
Digital cameras have greatly enhanced people’s ability to takephotographs and view them, but creative features have stagnateda bit. People generally do little more than take a still photo andprocess it, but with Dynamic Photo a moving subject can be
captured using high-speed burst shooting, then cut out of theoriginal photos and pasted against a different background from astill photo. The creative possibilities are endless!
We look forward to seeing the Dynamic Photo function create awhole new world of visual expression. Parents could take moving
images of their kids, and paste them onto photos of overseas
locations, for example. New modes of communication could
emerge. Imaginative new ideas and technologies could be
combined to create new things that will be used by ordinary
people. New markets could spring up. Therein lies the creative
power of Casio’s “0” to “1” philosophy.

EXILIM ZOOM
EX-Z400
This camera comes with the
Dynamic Photo function,
which allows the user to cut
and paste moving images
onto a still background,thanks to the high-speed
image processing of EXILIMEngine 4.0.

Highlight

1

Going from “0” to “1”to Create New Valuein the Digital
Camera Market
04 Casio Corporate Report 2009

Jin Nakayama
General Manager,
Product Development Unit,
QV Digital Camera Division●

HIGH SPEED EXILIM
EX-FC100

Responsible for Casio QV-10
product planning, has been aleading member of Casio’s
digital camera development
team ever since.

High-speed burst shooting at
30 fps, high-speed movies at
up to 1,000 fps, anddownsizing of the circuitry
and sensor unit could easily
put this camera in the palm of
your hand.

Casio Corporate Report 200905

The time is long gone when companies could makeproducts without a thought for the impact on the
global environment. But does the energy-efficient,resource-saving approach to making products thatmost companies currently employ actually result inenvironmentally friendly product innovation? We
invited University of Tokyo professor Ryoichi
Yamamoto to help us examine this question as it
relates to Casio’s efforts to make ever-morecompact, lightweight, slim, and energy efficient
products.

The calculator as a path to environmental
responsibilities, and future challenges
Kashio: Dr. Yamamoto, ever since Casio was founded, the company
has taken “Creativity and Contribution” as its corporate creed while
seeking to make ever-more compact, lightweight, slim, and energy
efficient products. In the spirit of going from “0” to “1,” the company
has engaged in product development of a sort not practiced
anywhere else. When you think of Casio, what comes to mind?
Yamamoto: Calculators. I did my early research on computer
simulation, and I have a good appreciation of just how powerfulthey are. For example, I often wonder what might have been if
Johannes Kepler, the 17th-century astronomer who showed that
Mars orbits the Sun on an elliptical path, had had a calculator.
Kashio: Oh? What do you mean?

Highlight

2

Yamamoto: Kepler carried out a prodigious number ofcalculations. We still have the sheepskin he wrote them down on.
Modern-day astronomers say he made two errors, but the two
errors canceled each other out (laughs). It was an extremelylaborious task. The word “if” is not allowed in the study of history,
but I still wonder what incredible things Kepler might have beenable to do if he had only had a calculator. It really makes you
realize what an awesome invention the calculator truly is. And it fits
in the palm of your hand!
Kashio: The card-style calculator which I just handed you is just
0.8 mm thick. We have been the beneficiaries of progress in theelectronics industry, especially in the integration of circuitry, and at
the same time we’re proud of the fact that we have played a role,
along with the semiconductor industry, in spurring progress incircuit integration. The quest to make our products ever-morecompact, lightweight, slim, and energy efficient resulted in thedownsizing of the facilities used to produce them. Moreover,smaller products make for energy savings at the logistics stage,
which is good for the environment. But will this actually lead to a
product development process that stands at the leading edge ofan environmentally conscious society? We have to focus on thecreation of new value beyond what we have already accomplished.
Yamamoto: I think Casio’s product development process has
moved in the direction of less reliance on materials and increased
emphasis on service. You started incorporating environmental
themes into business in about...
Takasu: We started in 1993 with the adoption of the Casio
Environmental Charter. At that time, developing high-quality
products was the top priority, while the approach to environmental

concerns was something like, “while we’re pursuing quality, don’t
forget to take the environment into account”—that sort of thing.
Environmental concerns weren’t really central to the productdevelopment process.
Yamamoto: The first Earth Summit was held in 1992, and thenISO 14000 was introduced in 1996. It was around that time. But I
think the quest to make things more compact, lightweight, slim,
and energy efficient is different in principle from the thinking that
underlies product development in the environmental age. The
former was indeed an important aspect of environmental
innovation, to be sure, but I think there came a time when the twoparted ways. The decision not to use toxic substances, forexample, or to find substitutes for rare substances like indium, wasevidence that the environment, not downsizing, had become thedriving principle. That’s when protection of the global environment
became the central concern of the product development process.

Wisdom from the past on integrating technology
and the environment
Kashio: Just making compact, lightweight, slim, and energy
efficient products is no longer enough to satisfy consumers.
Casio’s product development is not about responding to obvious
social needs; what we do is provide society with new value andmeet latent needs using our uniquely innovative productdevelopment process. To what extent this approach helps our
products contribute to the global environment is a very importantquestion. Dr. Yamamoto, what sort of products do you think will
be emerging in the future?

Yamamoto: I think it will be products that impart a sense that you
are creating sustainable value. How to conduct that sort of productdevelopment has become an important theme. I think the rise of
the modern-day “less is more” idea is important in this respect.
Takasu: How so?
Yamamoto: I’m thinking of the fusion of high tech and Gogo-an,
the mountaintop hermitage in Niigata Prefecture where the Zenmonk Ryokan spent 20 years of his life two centuries ago. He
spent his days enjoying his natural surroundings, but the weather
could get quite cold, and I hear he didn’t spend his winters up
there (laughs). Using modern techniques, however, you could build
a warm house that generates minimal greenhouse gases, and all
the while live a very free lifestyle in a remote corner of the world,
yet still have access to today’s knowledge-based global society.
High tech, in other words, is starting to support our lifestyles. The
idea of a “high-tech Gogo-an hermitage” points the way to one
type of environmentally aware society, I think.
Kashio: The term “knowledge” means more in today’s
knowledge-based society than just something you learn; it also
refers to entertainment, wouldn’t you say?
Yamamoto: Yes. For example, there are functions that enablepeople to communicate. If we follow this direction, I think it will
eventually enable us to use a bilingual electronic dictionary to talkwith people from other places, or to access the entire collectionsof the world’s largest libraries. And the demand for environmentallyfriendly entertainment is limitless. We don’t get “controlled”
by science; rather, science helps us with our need for clothing,food, shelter, and communication. I think establishing that kindof relationship is important.

Professor Ryoichi Yamamoto

Yukio Kashio

Tadashi Takasu

University of Tokyo Institute of Industrial Science●

Executive Vice President &Representative Director●

Director and Senior General Manager,
Research and Development Center,oversees all environmental
issues for Casio●

Born in 1946 in Japan, Dr. Yamamoto now
specializes in materials science, the theoryof sustainable product development, andeco-design. In addition to his academic
activities, he has also chaired the executive
committee of the annual Eco-Products
exhibition and served in public, advisory
positions for many other organizations. He
is working hard to bring about a paradigm
shift leading to responsible human
co-existence with the global environment,
and is highly regarded both in andoutside Japan for his efforts.

Born in 1930 in Japan, Mr. Kashio
assumed his current position in May 1996.
He has been a member of the Board of
Directors since the founding of Casio
Computer Co., Ltd., in 1957, and also
worked with its predecessor, Kashio
Seisakujo, starting in 1952.

Born in 1950 in Japan, Mr. Takasu
assumed his current post in April
2008. Since joining Casio Computer
Co., Ltd., in 1973, he has headed up
various business divisions and been
involved in the development of many
Casio products.

Defining Environmentally
Innovative Craftsmanship06 Casio Corporate Report 2009

Casio Corporate Report 200907

Takasu: Casio’s electronic dictionary includes the content of 100
dictionaries, which would weigh as much as nine-tenths of a fullgrown cedar tree if you printed them all out. In that sense, we canspeak of an environmental contribution, although we are awarethat there is a need to look at environmental issues from a different
viewpoint than that.
Kashio: As the capacity of memory cards expands, it becomes
possible to put more and more content into our electronic
dictionaries, but the real point is not the downsizing; what we need
to be focusing on is developing products that enrich our lives andprompt changes for the better in the lives of consumers. In otherwords, the important thing is not the material aspect, but
enrichment of our inner world.

Top management must lead the way
Yamamoto: I think the worldis in dire straits, indeed. It
would be fair to say that time
is running short. Battles are
raging over climate,resources, water, energy, andfood, to name a few
examples, and I think thefighting will grow worse overthe next 10 or 20 years. The
polar ice caps are melting.
The Arctic ice cap, inparticular, has been reduced
by 40% over the past 30
years, and some observers
say that ice will disappear
from the Arctic Ocean in a few
more years, every summer.
Kashio: A sense of crisis andurgency are still rather lacking
Yukio Kashio
in most companies’ productdevelopment.
Yamamoto: When former prime ministers of Japan Shinzo Abe
and Yasuo Fukuda called for a reduction by half in greenhousegases, it was a signal of a need for revolution. So who is going tostep forward and exercise leadership? Enterprises are the only
ones who can do it, because they’re the ones with the capital andthe know-how. And who within enterprises will do it? It will have to
be top management.
Kashio: Due to the urgency of the situation, environmental
initiatives at the enterprise level have to start at the top. Enterprisesthat don’t address environmental concerns are not engaged in“Creativity and Contribution,” as we would define it at Casio. Fromthe standpoint of corporate social responsibility, which has been a
hot topic in recent years, this is a very natural thing.
Yamamoto: The important thing is the message from the top, andnot just within a company, but also speaking up to the outside
world. Eco-products are still quite pricey, but it is the job of top

Defining
environmentally
innovative
craftsmanship08 Casio Corporate Report 2009

management to persuade consumers and investors to buy what isexpensive. If all they do is focus on short-term profits, it’s not acrisis they have on their hands, it’s a collapse. If more than 80% ofwhat you sell is green products, consumers will come to have ahigh opinion of your company and buy more of your products. And
investors will buy your stock. The publication of an outstanding
environmental report can cause your stock price to go up
significantly. Those in top management are the only ones who canlead the way to results like these.
Takasu: For enterprises, or perhaps for the societies in which theyfind themselves, the economy is still the main concern. But wemust accord equal status to the environment, and move ahead
with equal urgency on both fronts. That is my own thinking on thesubject, but this approach is going to have to be promoted before
it really becomes a company-wide consensus.

“Less is more”—a key theme of environmental
product development
Takasu: If I may return to the idea of the monk Ryokan and his
Gogo-an hermitage, Japanis not without its traditional“less is more” way of
thinking, but I think the “lessis more” idea that you
mentioned earlier is a bit
different from the traditional
concept. Nevertheless,when it comes time toaddress environmental
concerns, I do think that thismindset can be thefoundation.
Yamamoto: Ryokan was a
Zen monk. His philosophy
stemmed from Buddhism,
but I would like to suggest a
new “less is more”
concept—one that stems
from environmental
Tadashi Takasu
philosophy and ethics, andfrom concerns about the finitude of the earth. In the United Statesand elsewhere, people use the term “voluntary simplicity.” It
describes a lifestyle where the governing idea is, “Sure, I could
afford to drive a gas-guzzling car, but it emits greenhouse gasesthat stay around for the next thousand years, so why not drive
something else?” Because the culture of Zen is part of everyday life
in Japan, I think this way of looking at things ought not to be so
hard for us to accept.
Takasu: True. But at the same time, I have the feeling thatJapanese engineers aren’t quite cut out for dramatic action on the
new “less is more” way of thinking.
Yamamoto: Japanese industry is marvelously well suited to acase-by-case, one-off sort of approach, but is not at all adept ataddressing things from a system-wide perspective. In the UnitedStates and Europe, by contrast, they take a rational, systemic
approach. Western countries have led the way in theformulation of ISO standards, for example, while Japan has
been on the sidelines.
Takasu: From the standpoint of research, especially looking backover the history of Casio’s product development, it is true that
“innovative moments” were not usually systemic in nature. In thecourse of development, a lot of different people bat around a lot ofdifferent ideas, but at root it is a very personal thing, and not amatter of taking the results of marketing research andincorporating them into the process. The idea for a portablecalculator, for example, first occurred at a bowling alley whensomeone wondered whether it wouldn’t be possible to take acalculator to a place like that to calculate the scores. That’s how it
was with digital cameras,
too—someone just got towondering whether it would
be possible to make acamera that doesn’t requirefilm, and we started looking
into it.
Yamamoto: That’s a very
important point. No matter
what approach you take toproduct development,
individuals have to be freeWorld’s first personal calculator, Casio Mini
to express their creativity.
The launch of the Casio Mini enabled ordinary
people to use calculators on their own desktops,
And then there are cuttingand created a whole new culture and market.
edge technologies thatenable us to reduce the time it takes to come up with ideas,
especially computers. To develop new medicines, for example, inthe past they had to carry out actual experiments over and overagain in test tubes to synthesize certain chemicals, but they almost
always use computer simulation nowadays to narrow things down
to the most promising possibilities. So the question is, in aknowledge-based society, how do you integrate the creativity of
researchers within the internal systems of an organization? That’s
where Japan needs to be stronger.
Kashio: One of our commitments is to “ensure that our products
meet universal needs.” We don’t just respond to market demand,but use our own imagination in the process of productdevelopment. What we develop is entirely new value, not justmaterial affluence. In that sense, our goals are very congruent withthe “less is more” idea.
Yamamoto: How does one create an ecological lifestyle?
Precisely because you are Casio, I really am looking to you todemonstrate what the new “less is more” means. With the global
population set to rise from 6.5 billion to 9 billion, I would like to see
you come up with unique products that those 9 billion people canall enjoy without destroying the environment.

Waiting for a “magical” product to build anenvironmental civilization
Kashio: By the way, Dr. Yamamoto, you’ve been involved inplanning and holding the Eco-Products exhibition. Are there any
products that have really caught your attention?
Yamamoto: The Eco-Products exhibition has attracted 175,000
visitors in just three days, and the number of companies exhibiting
there has reached about 800, so interest in the exhibition is verystrong. Over the past 10 years, a lot of progress has beenachieved in developing ecologically friendly products and carryingout environmental management. However, I have yet to see a
revolutionary product hit the market that would herald the arrival ofan environmental civilization. Nothing out there has totally cast aspell over people, in other words. Energy-efficient and resourcesaving products can only go so far towards ushering in anenvironmental civilization.
The Crystal Palace, which was built for the first World’s Fair in
London in 1851, electrified visitors with its displays showing thewonders of industrial civilization. And when the Au Bon Marché
opened in Paris in 1871, it blazed a trail for department stores thatwould follow in later years, and drove home the wonders ofconsuming in an industrial civilization. It cast a spell on people.
Today we are milling about at the doorway to the environmental
civilization, but we haven’t
seen the magical productthat will make us believe it’sreally possible. That’s why
the intelligent device, which
has so strikingly driven home
the point that we are now
living in a knowledge-basedsociety, also harbors
extremely high potential interms of the environment.
Takasu: The “Green New
Deal” represents apromise—to bring forth giant
new industries—but at thesame time it constitutes athreat, for it will bring newcompetition. Manycompanies are apprehensive.
Yamamoto: Former Prime
Professor Ryoichi Yamamoto
Minister Shinzo Abe put
forward a proposal to reduce worldwide greenhouse gas
emissions by 50% by the year 2050. The International Energy
Agency estimates that an expenditure of ¥4,800 trillion would beneeded to achieve this goal. That does indeed imply the
emergence of a huge industry. Some are even referring toenvironmental undertakings as “green to gold.” I think companies
should be thinking about how to get a piece of
the action!
I would like to see Casio develop a product that, just by using itin the office, gives you an unmistakable feeling that it’s
ecological—a “model product,” if you will, a manifestation of the
new “less is more” mindset. I want to see your top management
send a strong message about it, too, so that consumers will bewilling to pay a bit more for it, and investors will find it compelling.
Kashio: Indeed, we’ve always been about creating new value andpresenting it to society in the form of a product. It needs to be an
expression of “enrichment” the likes of which we’ve never seen
before. We want for this expression of “enrichment” to come tofruition in the form of a Casio product.
Yamamoto: The reason I mentioned the Gogo-an hermitage ofthe monk Ryokan is because we, as humans, must not allow
ourselves to be dictated to by technology; it should merely be atool that we use to enrich our lives. Products that manifest the new“less is more” mindset should do just that.

Digital camera with LCD screen, QV-10
The release of the first filmless camera created a
new market for digital cameras.

Casio Corporate Report 200909

Casio Business Overview
by Category

Electronic Components and Others

The Casio Group is comprised of Casio Computer Co., Ltd.,
50 consolidated subsidiaries, and 3 equity-method affiliates(as of March 2009). Casio conducts its business in two main
segments: Electronics, and Electronic Components andOthers. The Electronics segment is divided into four
categories: Consumer, Timepieces, Mobile Network
Solutions (MNS), and System Equipment.

Electronics

89.2%

Electronic Components category
Sales: ¥32.5 billion

Others category
Sales: ¥23.7 billion

LCDs, BUMP processing consignments

Factory automation, molds, etc.

The Electronic Components category mainly consists of small andmedium-sized STN and TFT LCDs that are so indispensable tomany different types of mobile devices. Casio Micronics conducts
bump processing on consignment. BUMP is a technology that
forms electrodes for liquid crystal driver chips.

Most products in this category are independently made by
Casio group companies.

Electronic
Components
and Others

Sales by segment (FY2009)

Electronics
Consumer category
Sales: ¥178.0 billion
Electronic calculators, label printers, electronic dictionaries, digital cameras, electronic musical instruments
Casio offers a wide array of products to make everyday life
more convenient and enjoyable, including digital cameras,
electronic dictionaries, calculators, label printers, and electronic
musical instruments.

Share oftotal sales

Share oftotal sales

6.2%

4.6%

10.8%

Timepieces category
Sales: ¥80.4 billion

MNS category
Sales: ¥163.2 billion

System Equipment category
Sales: ¥40.3 billion

Digital watches,
analog watches, clocks

Cellular phones,
handheld terminals

Casio maintains a diverse range of highquality brands, including G-SHOCK, Baby-G,
and the OCEANUS line of solar-powered
radio-controlled watches with a full metal
case. Casio’s leading-edge technology isdriving the advance of the wristwatch toward
becoming a wearable multi-purpose
information terminal.

Casio offers cellular phones, handheld
terminals, and other portable terminals thatprovide unique solutions and bringconvenience to business and everyday living.

Electronic cash registers(including POS systems),
office computers, page printers,
data projectors
Casio supports businesses in a wide
range of industries with ADPS, a strategic
information system designed to support
companies’ human resource strategies.
Other items include high-speed color page
printers, electronic cash registers, anddata projectors.

Page printerDigital camera

Electronic dictionary

Calculator
Electronic
cash register

Data projector
Solar-powered radio-controlled watch

Share oftotal sales

34.4%

10 Casio Corporate Report 2009

Electronic musical instrument

Cellular phone

Handheld terminal

Share oftotal sales

Share oftotal sales

Share oftotal sales

15.5%

31.5%

7.8%

Casio Corporate Report 200911

Casio’s Corporate Creed andApproach to CSR

Casio’s Business Activities

Determined to fulfill its corporate social responsibility (CSR), Casio realizes its
corporate creed of “Creativity and Contribution” by ensuring that all employees, in thecourse of their daily work, implement the Charter of Creativity for Casio and Casio
Common Commitment.
Corporate Creed

The concept of CSR began catching on like wildfire in Japan in about 2003. It calls upon enterprises to demonstrate responsibility to theirstakeholders on a comprehensive range of issues, including the economy, the environment, and society.
Casio has abided by its corporate creed of “Creativity and Contribution” ever since the company’s founding in 1957. “Creativity andContribution” expresses the company’s commitment to bringing entirely new types of value to the world by creating things that have neverexisted before, thereby enriching people’s lives and contributing to society. Ever since the beginning over half a century ago,in other words, Casio has explicitly sought to make a social contribution through its business activities.
In 2003, Casio adopted the Charter of Creativity for Casio and Casio Common Commitment, a promise from everyone working at Casio.
The Charter and Commitment are designed to ensure that Casio employees will be aware of the corporate creed at all times,
and act upon it.
The First Chapter of the Charter discusses creating innovative products and the human attitudes needed to achieve this. The Second
Chapter recommits Casio to contributing to society through its business, and growing along with all stakeholders. Finally, the Third Chapter
calls for social responsibility in every aspect of one’s job. All three chapters contain essential principles which apply to the three key aspects ofCSR—economy, environment, and society.

Casio’s business creates new value because every organization,
each with its own function, exercises creative and technologicalskills. Simply put, each group focuses on going from “0” to “1”in its own area of responsibility, with each step in the process
linked seamlessly to the next. This section highlights Casio’s
value creation and environmental and social efforts in every
phase of the business process.

Development
Creating New Value
DesignCharter of Creativity for Casio and Casio Common Commitment—A Promise from Everyone Working at Casio—
Three aspect of CSR
Compliance
Economy Environment Society

Procurement

First Chapter
We will value creativity, and ensure that our products meet universal needs*.
1. We will strive to “ensure that our products meet universal needs” and this includes not only manufactured
goods, but also services and support, and everything else that we do.
2. We will be idealistic in all of our work.
3. We will carry our work through to completion, with a strong determination to take on every challenge thatcomes our way.

Second Chapter
We will strive to be of service to society, providing customers with delight,
happiness, and pleasure.

Streamlining
Management,
Using IT

Business
Support
Providing a Stable
Supply of Products
Worldwide

Production

1. We will provide people with “limitless inspiration.”
2. We will share a “life of spiritual and material prosperity” with people.
3. We will foster relationships of “respect and trust.”

Logistics

Third Chapter
We will back up our words and actions with trustworthiness and integrity, andwork as professionals.
1. We will take complete responsibility for all of our words and actions in accordance with all laws andregulations.
2. We will each take responsibility for our results and success, according to our individual role.
3. We will strive daily to improve everything we do.
* To create innovative products that everyone needs but no other company has ever produced. At Casio, this is the mission not only of product development,but of every other part of the business.

The directors and department heads sign the Charter of Creativity for Casio and Casio
Common Commitment every year, and together recite a pledge to abide by the Charter andCommitment and familiarize their subordinates with it.
There is also a site on the company intranet entitled CASIO World which includes
messages about the corporate creed and the Charter and Commitment from the fourbrothers who founded the company, along with other simple, compelling stories presented
once every other month. This helps all group employees to better understand and identify with
Casio’s essential character.
In August 2008, Casio conducted a comprehensive questionnaire survey to learn whatgroup employees in Japan think about the Charter of Creativity for Casio and Casio Common
Commitment, the Casio Group Code of Conduct, and the Whistleblower Hotline. The results
were analyzed to determine how strongly employees identify with Casio’s ideals, and thecompany is now identifying areas where improvement is needed. The findings will help todetermine next steps.

12 Casio Corporate Report 2009

Sales
Delivering Casio
Creativity to
the World
Service

CASIO World intranet site

Casio Corporate Report 200913

CASIO
Development/
DesignProcurement/
Production/
Logistics

Sales/
ServiceBusiness Support

Creating New Value
Developing products that
ensure ease of use for everyone
by realizing new ideas withadvanced technologies
Fumitsune Murakami
Senior Managing Director andSenior General Manager, Consumer Division

Casio’s product development concept is simple: goingfrom “0” to “1.” The Consumer Division has faithfully
adhered to this tradition by working to develop suchproducts as electronic dictionaries, musical instruments,
and projectors. As we have shown in the field of electronic
dictionaries, which have made it possible for users to carryaround vast amounts of information that would otherwise
require dozens of printed dictionaries, our role is not only to
improve the convenience of conventional tools, but tocreate a new culture using digital technologies and to
produce new value that has never been created before.
The source of Casio’s development skills lies in its
digital technologies, but Casio’s products, in addition to
being smaller, lighter weight, and more energy-saving,must utilize advanced technologies that make them easy
for anyone to use. We therefore put ourselves in theposition of users and constantly listen to their feedback. In
particular, the pursuit of the optimal user interface is a
mission that has long been an essential part of the Casio
product development heritage. Better interfaces areachieved through the efforts of engineers who are
constantly striving to re-imagine the scenarios in which
their products will be used and to match ideas withtechnologies in innovative new ways. Moreover, designing
products suitable for mass production is an important partof the design process that determines our manufacturingcosts and safety measures and drives our corporate
competitiveness. Our division develops optimal designs
that take into account all aspects of our business, fromproduction to marketing to service, and thoroughly
investigates the safety and environmental implicationsof its products.

Core Technologies for Realizing
New Ideas
Casio creates products from innovative ideas by constantly
developing its core technologies, including digital technologies, aswell as technologies for making products more compact, savingenergy, and for use in telecommunications.

Core technologies

Smartly Operating
on Little PowerTo create even more compact and energy-efficientradio-controlled watches, Casio has developed theindustry’s first all-band CMOS receiver LSI, which
integrates the analog circuit that receives radio waves
with the digital circuit that processes data. Because they
only require a small amount of power to operate, CMOS
receiving circuits are usually less effective at keeping out
noise in radio-controlled watches. Also, the low level ofpower involved, about 1/1,000th of that required byordinary communication devices, can make it difficult tomaintain operational stability. To solve these problems,
Casio developed the high-performance, power-saving
circuit ahead of its
competitors. As an LSI thatcan receive radio waves fromtransmitters around theworld, it has been used forthe first time in Casio
watches featuring Multiband
6 technology.

Compact
size

Casio’s Exilim Engine 4.0 for digital cameras uses amulti-CPU design, in which two CPUs run in parallel, toachieve complex image processing at ultra-high speedsthat had previously been difficult to achieve. These
technologies have enabled Casio to create the Dynamic
Photo function, which allows users to make composite
moving images right on the camera, and a makeup
function that helps make sure people’s faces look
beautiful in photos. The camera instantly analyzes thephotographic conditions, performs optimization
processing, recreates natural backlighting, and uses aninnovative new noise-removal algorithm to remove lowfrequency noise from highsensitivity photography. This
allows the camera toCPU
New CPUproduce beautiful images,
fulfilling the basic function
people expect of the
Hardware Memory
camera, while also achieving
Logic
an energy savings of about
30% over earlier models.

Core Technologies

Compact, Slim, Lightweight

Use of WLP,*1 a high performance, compact, highly
reliable, low-cost semiconductor packaging technology,
is rapidly expanding, particularly for cellular phone
applications. Casio is also developing technologies andapplications for cutting-edge, high-density EWLP *2
packaging in which the chip itself is embedded in theprinted circuit board. In the future, making products
without the use of solder will allow for a reduction in the
consumption of heat energy in the manufacturing
process. Solderless packaging is a vital technology inthe electronics industry
since it can significantly
reduce a product’s
environmental impact.

Durability

Easeof useEasy for Anyone To Use

In an effort to meet the needs of users to know, to hear,
and to learn, Casio has been striving to create electronic
dictionaries that offer better operability and learning
tools, with functions accessible via a touch panel
design. Casio is a pioneer in the industry in its adoptionof the twin touch panel. By using a touch screen for themain interface, the company has made it possible tosearch for complex Kanji characters by writing large
versions of the character on the main screen. Casio has
also achieved “map searching” that allows users to
directly touch the map being
viewed. The most recent
model places the mostfrequently used icons along
the right edge of the main
panel, allowing even faster
access to touch panelfeatures.

A Sense of Security
Anywhere, Anytime

The G-Shock watch, with its more than 25 year history,
is the jewel in Casio’s crown of shock-resistancetechnologies. The glass face, buttons, and back of thecase are all designed not to make direct contact withthe ground if dropped, allowing the plastic components
to absorb all the shock. Further, the heart of the watch
is protected from shocks by a layout that keeps theinternal module suspended in a hollow structure. Eachelectronic component, down to each quartz, isprotected by buffer materials. The standard radio wave
receiver is a stack of amorphous membranes that are
difficult to bend, even whensubjected to an impact. In its
latest radio-controlled solarpowered Tough Movement,
the module itself is shock
resistant, and willautomatically correct even if
a shock causes the hands ofthe watch to shift slightly.

Joint Industry-Academia Research to Develop Technologies for Replacing Rare Metals

5 coretechnologies

Compactsize

14 Casio Corporate Report 2009

EnergysavingDigital Technologies Make
the Impossible Possible*1. WLP (wafer level package): An LSI package that enables rerouting ofcopper traces, formation of electrode terminals, and encapsulation ofchips in epoxy resin, all on an intact wafer.
*2. EWLP (embedded wafer level package): By embedding WLPs on asystem circuit board, this packaging technology maintains the highperformance of electronic devices while making them even morecompact, slim, and lightweight.

Digitaltechnologies
EnergysavingDigitaltechnologies

Ease of use

Durability

The rare metal indium is used in the transparent electrodes needed in LCDs, and theability to meet growing worldwide demand for this resource is being threatened.
Casio was commissioned by the Ministry of Economy, Trade and Industry in fiscal
2008 and the New Energy and Industrial Technology Development Organization(NEDO) in fiscal 2009 to launch a joint industry-academia research project among
several companies and the Kochi University of Technology. The participants areworking to develop technologies that can create transparent electrodes using themore easily attainable zinc oxide. Transparent electrodes made using zinc oxide
have excellent optical properties, and can help LCD panels to offer better brightness

and color than conventional models. Casio is responsible for identifying and solving
the challenges involved in the manufacturing
process, with the ultimate goal of making thisapproach commercially viable. Prototype panels
have been displayed at exhibits and researchmeetings such as CEATEC Japan in September
2008. The project has already demonstrated that
it is possible to achieve visual quality just as goodas conventional LCD panels.

Casio Corporate Report 200915

CASIO
Development/
DesignProcurement/
Production/
Logistics

Sales/
ServiceBusiness Support

Universal Design Through
Human-Centered Design

Ensuring Safety ThroughFlame-Resistant Design

Casio subjects the G-Shock to a variety of tests, including shock-resistance tests, vibration tests, andunderwater pressure tests, and rigorously checks its reliability to ensure that it meets industry standards.

Casio products are all designed in 3D using computer software,and are stored as digital data. These files are centrally managed
along with circuit diagrams, component data, specifications, andproduction schedules, and are shared via network with production
sites and logistics facilities. This system was established to enable
Casio to flexibly adapt to changing conditions, such as changes inuser needs and the economic environment.
By sharing this data throughout the company, Casio canensure that circuits and parts that work the same way, even if usedin different product areas, are standardized, achieving lower
procurement costs and greater efficiency in assembly. If any
problems arise in relation to quality or the environment, Casio canefficiently go through its past product lineup to determine if there isa need to replace a certain part, or can work across departmental
lines to examine the total environmental impact, for instance,
calculating the amount of designated chemical substances
contained in products.
Design data is also used in the creation of catalogs andinstruction manuals. Since design data can be used to create 3D
diagrams and cross-section diagrams, there is no need to startdrawing new diagrams from scratch. This accelerates the
production process and keeps costs down.

Platform Design for Flexible Production
Casio’s electronic dictionaries come in a variety of models and in awide array of colors to meet the needs of today’s diverse users. To
efficiently produce product lineups that span a wide range of configurations, Casio integrates all the common parts of each productto create a single “platform unit.” This allows Casio to keep costs
down by ordering parts in large quantities, and to improve manufacturing efficiency by standardizing production processes.
Casio determines how many of each product to ship by looking
at the market conditions immediately before shipment, inserting
different types of content into the platform units, assembling theexterior, and then packaging the products. This allows Casio tosupply only the number of models necessary in the shortest periodof time.
Use of platform unit in electronic dictionary
Post
processing

Platform unit

Data
insertion
Exterior
component
assembly

Model A

Model B

Model C

Shipment

Digital Design Data Sharedon a Network

Packaging

Reflection ofmarket conditions

Strengthening Green ProductDevelopment Standards
In fiscal 2002, Casio launched its Casio Green Products campaign
to promote the creation of environmentally friendly products.
Products that meet rigorous standards, based on the results of a
product environmental assessment, are certified as “Casio Green
Products.” The company set a goal of having Casio Green
Products account for 80% of total product sales by fiscal 2009,and met it ahead of time. Going one step further, Casio thenestablished an internal committee that decided to identify the mostenvironmentally friendly of the Casio Green Products as Casio
Green Star Products. This committee set a new goal in fiscal 2010of 30% of total sales coming from Casio Green Star Products byfiscal 2013.

16 Casio Corporate Report 2009

To prevent the occurrence of major product accidents (fires or fatal
accidents) that might threaten the safety of consumers, Casio is
working to create products with flame-resistant design. To preventa fire from breaking out due to a malfunction or electricalabnormality, Casio not only builds in safety when designing
product circuitry, but has also established a safety design
standard mandating use of flame-resistant materials in circuitboards and external casing. This ensures that the product itself
will not ignite, even if by some chance a fire were to ignite inside
the case, such as could potentially happen if a product were usedat the wrong voltage.
The designers also envision a scenario in which a product isengulfed in flame from the outside, and then confirm the safety ofthe product by conducting a test of forcible ignition to verify
whether it could cause a fire.

The main objective for Casio’s universal design activities is simply
to improve the quality of the user experience. Casio works todevelop products using human-centered design (HCD) in
conformity with ISO 13407 processes.
To achieve HCD, Casio listens to feedback from customers
who actually use its products, places top priority on approachingproduct development from the customer’s perspective, and strives
to improve the ease of use of all elements of its products, from theproduct itself and its packaging to the instruction manuals—all
based on the results of user tests and feedback obtained from theCustomer Support Center.

Verifying the Properties of the G-ShockThrough Strength Analysis
During the design phase, Casio rigorously tests the shockresistance of the G-Shock watch. First the individual parts areanalyzed, and checked for adequate strength. When these areassembled into the final product, Casio considers all the shocks
that could hit a particular part, conducts a shock simulation fromdifferent directions using a 3D CAD program, and verifies that noproblems occur.
The superior shock-resistance offered by the G-Shock has
been achieved not only by applying this analysis but also throughthe combination of cutting-edge molding technologies andsurface-processing technologies including urethane coating.
Employee Message“Heart-Craft” Concept is User Friendly
Casio is introducing the “Heart
Craft” concept into its shapeand screen design, as a meansof making cellular phones easy
to understand and use in spiteof their growing multifunctionality and increasingly
complex uses.
Unique, friendly characters,such as the Adelie penguins,appear on the screen, and act
out heartwarming animatedscenes with story lines. This isbeing done to help users enjoy
the many functions of theirphones, and to relax and enjoy
the short bursts of time they
spend waiting while making
phone calls and sending
their email.

Handheld terminal DT-X7

Universal design calculator

Global Development of Intellectual
Property Activities
Casio treats the technologies, designs and other intellectual
property produced by its employees in the development
process as important management resources, and therefore
works to obtain patents, utility model patents, design rights,
and trademarks.
In recent years, in response to the globalization of businessactivities, Casio has been specifically striving to increase thenumber of patent applications outside Japan. The goal is toincrease the percentage to 30% of the company’s total patentapplications. In particular, Casio is working hard to acquire patents
in the US, where intellectual property competition is particularly
fierce, as well as in the growing market of China.
Global patent application rates
(%)
16.0

14.8

14.0

US
China

12.0

10.4

10.0
8.0
6.0

5.4

9.8

6.6
4.6

7.8

4.0
2.0
0

2.7
’95-’97

3.3’98-’00

3.0’01-’03’04-’06’07-’09 (FY, in 3-year
segments)

Taichiro Tsujimura
Design Center

Casio Corporate Report 2009

17

CASIO
Development/
DesignProcurement/
Production/
Logistics

Sales/
ServiceBusiness Support

Customer Satisfaction and Quality Assurance
Pursuing Top Quality

To offer products and services that please and impress customers,
Casio is committed to making products that earn high marks inevery possible aspect, including safety, of course, as well asfunction, design, price, reliability and durability, serviceability, andenvironmental conservation.
Together, these are what make “Casio Quality” what it is. The
role of the quality assurance system is to ensure that Casio reliably
delivers quality that meets or exceeds customer expectations.

Casio’s efforts to achieve premium quality are guided by a clearly
articulated Quality Concept and Quality Management Policies,
which provide indices for evaluating all quality initiatives.

Quality Concept
Casio maintains a strong quality assurance system, basedon its belief in “Quality First.” This system requires all
employees to make quality their first concern in every task
they perform, enabling the company to offer products andservices that please and impress customers. The
company’s commitment to quality supports its corporate
growth and makes social contributions possible, while atthe same time winning customers’ trust and giving thempeace of mind.

Functions,performance, design,
price, usability
Environmental
conservation,
recycling

Reliability,
durability

Casio
Quality

Serviceability

Offering Users Peace of Mind

Safety,legal compliance

Quality Management Policies

Quality Assurance System● To build a good corporate image, we offer products andservices that please and impress our customers, gain
their strong trust, and ensure their peace of mind.
● We respond to our customers’ requests and inquiries
with sincerity and speed, and reflect their importantcomments on our products and services.
● In all our business processes, we base our actions on
the Principle of the Five “Gens”—in Japanese, genba (onsite), genbutsu (actual goods), genjitsu (reality), genri(theory) and gensoku (rule)—and adhere to the basics ofbusiness operations.
● We capture and analyze quality assurance activities
quantitatively, using reliable data, and use the analysis tomake continuous improvements. We also maintain aquality information system that enables the sharing of
quality information and prevention of problems before
they occur, and prevents recurrence of quality problems.

Constantly striving to achieve the highest level of Casio Quality
helps improve customer satisfaction, leading to further growth for
Casio’s business. Casio’s carefully designed quality assurance
system is essential to this outcome.
Casio has created a company-wide quality assurance system,
shown in the diagram below, and strives to ensure quality byenlisting the cooperation of all manufacturing, sales, andservice departments.
The Casio Promotion Committee for Groupwide Quality
Enhancement is the highest authority responsible for quality
assurance. It meets semiannually, convening the heads from eachbusiness segment and manufacturing and service affiliate companies. Decisions are made at these meetings on company policies
and important issues relating to quality. The policies and measures
are then communicated to individual departments and reflected in
specific quality assurance activities within the departments.
In addition, in the Electronics segment, the CS Control Group(within the Global Marketing Headquarters) has been linked
together with the Engineering Department (within the Production &Purchasing Division) to improve product quality and services.

Ensuring Customer Satisfaction

Casio makes every effort to ensure product safety so that
customers can always use Casio products with peace of mind.
As shown in the diagram below, Casio carries out rigorous
product safety reviews during each process, including productplanning, development, design, prototype production, evaluation,
manufacturing, and shipping. The company also takes proactive
measures to head off problems or prevent them from recurring.
To comply with the legislative intent of Japan’s recently revised
Consumer Product Safety Act, which went into force on May 14,
2007, the Casio board of directors has adopted the Fundamental
Policies on Product Safety. Based on these policies, Casio has put
in place the Product Safety Voluntary Action Plan which specifies
the details of the steps to be taken. The company has also
reengineered its response systems for handling those unusual
situations when a product-related accident occurs, and has
established procedures for managing such situations. These
include the steady, timely collection and dissemination of accident
information, the issuance of notifications and reports to customers
and relevant administrative agencies, prompt, appropriate
response measures, efforts to identify causes, and measures toprevent any future recurrence.
Casio’s product safety system
Product
planning

Development /designPrototype /evaluation

Manufacturing /shipping

Safetyreviews

Safetyreviews

Safetyreviews

Safetyreviews

Functions /specifications
New elemental
technologies
Usability
Manuals
Applicablestandards

Circuit design
MechanicaldesignSoftware design
Device design
MisusePacking /shipping /storage

Testing
standards
Testing manuals
Reliability /durability
Supplyspecifications
Manuals
Warnings /cautionary
statements

Work
standards
AssemblysupervisionWork
instructions
Process check
Traceability
Safetymaintenancemanagement

Manufacturing
affiliates

Sales and service
affiliates

18 Casio Corporate Report 2009

Electronic
Components businessEngineering
CS Control
Group
Collaboration Department
Quality
CS activities
activities

Mobile communications business

Sales departments
for each business

System business

Production &Purchasing Division

Digital camera
business

Division in charge of groupwide quality

Timepieces business

Global Marketing
Headquarters

Consumer business

Chaired by the Executive Vice President

Electronics segment

Twin touch
panel
Users can choose to
use two screens

Requests for touch panel input foreasy operation
Requests for free memo functionthat users can use any way they like
Requests for more economical
rechargeable batteries

Free memo
function
Free memo offers
versatility

XD-GF/SF Series

Quality Assurance Activities in Fiscal 2009

Laws & regulations / safety standards / safety design standards /safe manufacturing standards / etc.

Quality assurance system

Promotion Committee for Groupwide Quality Enhancement

Improvements to electronic dictionaries after
customer feedback

Greater economy
through use ofrechargeable batteries

Customer feedback / accident case studies /leading company benchmarks

President

To make sure that its products continue to satisfy customers,
Casio periodically conducts satisfaction surveys that address not
only issues of breakage or safety, but also issues of comfort during
use and design features. Casio constantly works to improvecustomer satisfaction by utilizing the feedback offered bycustomers via the Customer Support Center in the productdevelopment process.

Rechargeable
battery use

Customers

Casio’s Approach to Quality Assurance

Strengthening safety measures
Design plays a key role in product safety, and Casio has established safety design standards to prevent variations in product safety
depending on the particular designer or organization involved.
Since fiscal 2009, Casio has been conducting forced ignition tests
on products based on the rare possibility of such an occurrence,
confirming the safety of its products even under these conditions,revising its materials and structures as necessary to ensure that nofire or other significant damage could occur, and striving tostrengthen its safety design framework.
To realize total safety management in the manufacturing
process, Casio has revised its rules to ensure that, when new
types of products move from the development and design
divisions to the manufacturing divisions, relevant product safety
management tips are more clearly described and are carefully
implemented in the actual production process.

Steps to ensure customer safety
In addition to strengthening safety measures as described above,
Casio conducted safety inspections and legal compliancemeasures with regard to products with lithium ion rechargeable
batteries, which have been added to the items governed by
Japan’s Electrical Appliance and Material Safety Act (enacted
November 20, 2008).
The government of Japan took this step to strengthen safety
regulations following a series of dangerous accidents worldwide
involving the heating and ignition of lithium ion rechargeable
batteries. Casio’s response was robust, including provision ofinternal education and guidance to ensure legal compliance withregard to the applicable products.
Measures to improve market quality
Having analyzed last year’s market quality conditions, Casio
summarized the key issues in each of its product categories, andhas set quality goals for each. At the individual quality meetings
held every month, participants discuss issues related to improving
market quality, and make plans regarding the revision of quality
standards and the strengthening of maintenance and management
systems.
Activities to reduce losses due to quality issues
Casio has identified the key improvements that are needed byfocusing not only on the ratio of defective products reaching themarket, but also on the overall number of defects, and is taking
painstaking efforts to reduce this number. The company has beenworking to prevent any recurrences, to eliminate the causes ofproblems, and to reduce losses due to quality issues.
Casio Corporate Report 2009

19

CASIO
Development/
DesignProcurement/
Production/
Logistics

Sales/
ServiceBusiness Support

Providing a Stable Supply of
Products Worldwide
Delivering products using
human discernment andadvanced technology
Osamu Ohno
Corporate Officer and Senior General Manager,
Production & Purchasing Division

Our primary mission is to deliver a customer’s desired
product, at the desired time. We must continually andquickly supply the latest products without any interruption.
In order to accomplish this, it is necessary to secure stableprocurement routes amid a global shortage of resources,
and create a network for the steady gathering of highquality parts and materials. If even one part is missing, aproduct cannot be completed and delivered. Reliability is
the key to procurement, while speed is paramount for
production. In rapidly changing markets such as the market
for digital cameras, a product that takes three months to
manufacture can be out of date by the time it hits the store
shelves, due to changes in competing models. To stay one
step ahead, we use rapid production mechanisms capableof manufacturing products as soon as they are ordered.
At the Production & Purchasing Division, we are in
charge of an extensive supply chain for delivering products
to customers, and we also have a great responsibility toensure Casio’s profitability. This is because supply chain
efficiency directly impacts the bottom line. In particular, theaccumulation of unshipped products can lead to pricereductions, which results in a direct loss of income. Using
IT, the entire procurement, production and logistics
systems are integrated and carefully controlled, in order toprevent the accumulation of inventory, and to ensure
efficient and timely product delivery.
As an organization that provides a support frameworkfor product creation, the Production & Purchasing Division
will continue to make daily improvements. We are proud of
our role in the continual delivery of Casio products topeople around the world.

Supply Network Responds Quickly
to Changes in Demand

Casio Group Production Technology

In order to secure a steady supply of key components such as
semiconductors and display devices, Casio maintains stable, longterm purchasing relationships. However, market demand is notalways steady, and demand for some products is concentrated in
short periods of time. To address this situation, production andsales teams at Casio work together to provide a stable supply of
products while carefully adjusting for changes in demand.
Production sites carry out simulations based on sales plansprovided by the sales department, and calculate the personnel andequipment levels needed for production, before making thenecessary arrangements. The materials procurement department
adjusts the procurement quantities every week by looking at
information on materials to be received, and models needed by thesales department. The computerized Supply Chain Management
System (SCM System) coordinates the entire process frommaterial procurement to production, distribution and sales,
supplying the optimal quantities with speed and efficiency. By
strengthening cooperation over the entire network, and responding
quickly to changes in the(Days)
80
market, Casio is working(¥ million)
Inventory
60
800,000
turnover period
to realize compact andNet sales
40
Inventories at theend of the period
flexible production that
20
600,000
enables rapid production
400,000
changeover to different
models, without losing any
200,000
quality or efficiency.
0

2003

2004

2005

2006

2007

2008

2009 (FY)

Optimal Production Locations andDiversified Risk
Social and Environmental Initiatives
in the Area of Procurement
Casio has established Procurement Policies calling for fair,equitable transactions, and they cover a broad range of social andenvironmental issues such as human rights, labor conditions,safety, health, the environment, and information security. The
company works with suppliers to obtain their understanding andsupport for these policies. In fiscal 2009, briefings on the
Procurement Policies were again held in Southern China andThailand. A second CSR questionnaire was also given to suppliersin Japan. The questionnaire results were provided as feedback to
all the suppliers, and Casio worked to further improve the level of
CSR procurement.
In order to completely prevent the procurement of productparts or materials containing substances that are harmful to theenvironment, Casio has established procurement standards thatincorporate relevant laws worldwide, based on chemical substanceregulations in countries to which Casio products are exported.
Green procurement is promoted by providing suppliers with thesestandards, ensuring that they all know about restrictions on theuse of specified chemicals, and asking them to submit detailed
information on their products. At the end of fiscal 2009, thestandards were updated to create a sixth edition, in order toincorporate measures for compliance with the EU REACH
regulation, as well as a revised list of substances prohibited foruse in products.

20 Casio Corporate Report 2009

Production sites around the world vary in terms of technicalcapabilities, proximity to major markets, ease of part procurement,
and labor costs. Making the most of its knowledge of thesefactors, Casio optimizes production locations by assigning
manufacturing to different plants based on product characteristics.
In order to prevent any interruption in supply due to unforeseen
circumstances, two separate production sites are maintained forevery Casio product.

Casio is working to develop new production technologies using
expertise developed through the manufacture of diverse productlines, enabling cutting-edge products to be produced evenmore efficiently.
Production Lines for “Tough Movement” Watch Mechanism
In 2008, Casio launched its Tough Movement technology foranalog watches. This is a new type of movement with advanced
functions such as Multiband 6, which automatically ensures
precise timekeeping using standard radio waves from any of six
transmitters worldwide. The new movement also provides shock
resistance and automatic hand-correction. In order to produce
Tough Movement mechanisms with high quality and flexibility,
Casio developed its own Analog Block Automatic Assembly Line.

This automatic assembly line is based on completely separate
units that can be arranged in any formation, thereby enabling
mixed production of multiple models. Casio has also developed a
special five-axis robot using linear motors and equipped withmultiple heads. This enables several parts to be handled at thesame time, which results in high-speed assembly. In the 3-mmdiameter gears that drive the hour, minute, and second hands,
300-micron holes have been inserted to enable the automatic
hand-correction function. An assembly device with an image
sensor determines the top and bottom sides of the gears, andpositions them in the movement based on hole-position detection.
The development of high-precision assembly technology like thiscontributes to a stable supply of Tough Movement mechanisms,
which offer a high degree of reliability and performance.

Production and supply systems for individual products● Contract manufacturers
Calculators, electronic musicalinstruments, printers, timepieces,
digital cameras, systems,
cellular phones, data projectors● ■ Casio (Hong Kong),
Panyu Factory
Electronic dictionaries, TFT LCDs
● Casio Electronic (Shenzhen),
Guandu Factory
Timepieces● Casio Electronic Technology(Zhongshan)
Electronic dictionaries, electronic
musical instruments, timepieces● Casio (Thailand)
Timepieces● ■ Contract manufacturers
TFT LCDs,
electronic cash registers● Electronics segment■ Electronic Components segment● Yamagata Casio
Timepieces,
cellular phones● ■ Kofu Casio
Systems, LCDs,
data projectors■ Kochi Casio
TFT LCDs● Casio Electronic
Manufacturing
Systems (printers)■ Casio Micronics
Electronic components■ Casio Indonesia
LCDs

Employee Message

Building Good Labor Relations in Our Plant
Based on the results of a survey of corporate welfare programs
that also included other local companies, we have taken new
steps to improve our pay system and benefits program.
Separate committees were set up to promote CSR activities
and employee satisfaction, and each committee works with theunion to carry out the needed tasks. For the third year in a row,
we have received an award sponsored by
the Thai Ministry of Labour’s Departmentof Labor Protection and Welfare,recognizing us a company with an
outstanding human resources system.

Nate-Napa Panyaboon
Department Manager,
Human Resource Department,
Casio (Thailand) Co., Ltd.

Casio Corporate Report 200921

CASIO
Development/
DesignProcurement/
Production/
Logistics

Sales/
ServiceBusiness Support

Mold Manufacturing Technology at
Yamagata Casio’s High-Tech Plant
The high-tech plant at Yamagata Casio Co., Ltd., boasts outstanding manufacturing technology.
Many of Casio’s most challenging new products were first manufactured at this plant. With its expertisedeveloped through years in manufacturing cutting-edge products that entail a high degree of difficulty,
Yamagata Casio has earned the confidence of other companies in a broad range of production
fields and now molds plastic parts and manufactures metal molds on commission.

Simulating Mold Manufacturingand Movement

Automatic Mold Diagnosis Using
Ultrasound Analysis

Using 3D design data, Yamagata Casio carries out
preliminary computer simulations of mold manufacturingand movement.
With digitized mold design data, virtual testing is carriedout on a computer, in order to ascertain things such as theforce applied by machine tools
Filling pattern [sec.]
during mold processing, themovement of the mold during
part manufacturing, and the flowof resin within the mold. This
testing enables the company toreduce problems that may
occur during actual moldmachining and partmanufacturing to almost zero,
which helps to shorten the
manufacturing lead time andincrease efficiency.

Using an acoustic emission (AE) analysis method developed
in-house, Yamagata Casio has introduced automatic molddiagnosis into the process for filling a mold with resin. Just
like when a skilled railway worker taps on the tracks to listen
for problems, the sound produced at the time of molding
can be instantly analyzed using digital technology. The AE
method can detect without fail even the slightest deformation or crack that may appear in a mold used tens of
thousands of times. An alarmsounds before the problem
has any impact on quality,
thereby preventing any part
defects that might arise fromthe damaged mold.

Lead Times Reduced by Automated
Mold Manufacturing
Creating the molds used to manufacture plastic parts
requires complicated high-precision machining. In the past,
it took as long as 45 days to manufacture a metal mold.
Now, Yamagata Casio has automated much of this process.
Machining data is first prepared from the 3D design data
provided by the design department, and then is input into amachine tool. Through the automation of cutting andelectrical discharge machining, a mold can be completed inabout 20 days. As a result, the lead time to the start ofproduction has been drastically reduced.
Employee Message

Training for True CraftsmanshipThe company works hard to train employees on its
manufacturing technology, in order to develop specialized
workers and multi-skilled workers that can ensure a highlevel of production quality. An incentive system has been
established to encourage the acquisition of national
certification by workers including plastic molding
technicians, electrical discharge machinists, and moldmanufacturing technicians. The number of employees thathave obtained top-level certifications for multiple technicalareas has increased. The company is also encouraging thetransmission of technical knowledge from older to younger
employees by offering in-house master classes by speciallyskilled workers.

Employee Message

System Development to Support the Best
Craftsmanship in the Industry

Obtaining Level 1 Certification for Mold
Manufacturing Technicians on My First Try

After joining Yamagata Casio, I worked on the creationof mechanisms for automation and streamlining basedon computerization. Now I am the leader of a systemengineer team that is planning and developing a moldproduction automation system that will operate at thecore of our business. We are designing a process forthe efficient machining of complicated molds. I feel very
motivated to be working on the frontlines of the bestproduct craftsmanship in our
industry.

I am in charge of programming for the production of moldparts using machine tools. Having always liked product creation, I wished I could do mold machining just like my skilledcolleagues. So I decided to learn actual machining techniques, and took on the challenge of the skill certification
exam. While looking after my baby born last year, I learned
actual techniques under the guidance of my co-workers.
After taking a written exam covering specialized knowledge
for mold machining, as well as apractical skills exam involving thecreation of a mold from material
according to specifications, I was
happy to learn that I had passed.

Tomoka Kiyono

Yoko Konno

Mold Making & Molding Division,
Yamagata Casio Co., Ltd.

Mold Making & Molding Division,
Yamagata Casio Co., Ltd.

22 Casio Corporate Report 2009

Pursuing Integrated Global Logistics
Casio is taking a variety of steps for its transition to truly global
logistics, by integrating conventional logistics (sales logistics) used
to deliver products to market with materials logistics used for the
procurement of parts and materials as well as production logistics
for transporting manufactured products to the various sales
warehouses. The aim is a seamless system that can operate
quickly by facilitating a single flow from procurement, toproduction, to sales without any waste of resources.

Promoting Green Logistics
In order to reduce CO2 emissions in the logistics process, Casio is
promoting the following three action plans.
• Shortening transport distances
Promoting direct shipping to customers from logistics centers inand outside Japan• Promoting a modal shift*
Actively using modes of transport with low environmental impact
such as rail for transport between sites• Improving loading efficiency and reducing transport volume
Improving the packaging design of electronic dictionaries andmusical instruments, and reducing the volume of packaging* Casio is currently trying out a transportation method that combines rail and ferry for shippingfrom Zhongshan, China, to Japan. Full-scale implementation of this method is expected toreduce CO2 emissions by at least 95%.
● Habarovsk
Previous route: Zhongshan ➞ Hong Kong ➞● Vladivostok
Kansai International Airport ➞ Suzuka
New route: Zhongshan ➞ Shanghai ➞ Hakata ➞ Suzuka● Beijing● Pyongyang

Casio is promoting improvements that benefit customers by
integrating this logistics system with initiatives at production sites
through a unified IT network. As a specific initiative, the company ispromoting the construction of an automated process that can
immediately tell customers when products will arrive based on theirorders. The delivery date response is created by accessing
information on production progress conditions at the plant.

Reducing Logistics Costs
In order to reduce logistics costs, redundant logistics centers havebeen amalgamated, and the centers have been relocated to sites
enabling transportation by the shortest routes. Casio had eight
distribution centers in Japan up until 2003, but has sinceamalgamated them into four centers. Along with the completion ofa new office building for Casio Europe GmbH in 2009, four
warehouses in Hamburg were combined into two. To maintainlower warehouse operation and delivery costs, operations inside
the warehouses have also been totally streamlined using bar codes
and handheld terminals.
Even during transportation, costs are being reduced by using
low-cost rail and marine transport, as well as more efficient loading
methods. A system for worldwide competitive bidding is used forselecting transporters, and shipping companies with particularlyhigh global cost competitiveness are being selected.

● Seoul● Pusan● Xi’an● Chengdu

Wuhan ●

● Tokyo● Nanjing● Hangzhou● Shanghai● Hong Kong

● Taipei

Full Trade ComplianceCasio is complying with all laws relating to trade, import, andexport, including the Japanese Foreign Exchange and Trade
Control Law, and the Customs Tariff Law. Casio is striving toincrease its corporate value by carrying out initiatives that aim forthe full implementation of risk management activities. In February
2009, Tokyo Customs designated Casio as an Authorized
Exporter. Casio is recognized as having the ability to carry out theproper customs procedures, thanks to its outstanding security
management and compliance systems. This is the Japaneseversion of the Authorized Economic Operator (AEO) system being
promoted in the US and EU. Based on a move to mutual
recognition between the Japanese and Western AEO systems, theJapanese customs procedures are being simplified, and the leadtime for importing and exporting is expected to become shorter.

Reusing Repair Shipping Packages
Casio Techno Co., Ltd. started to reuse its repair shipping boxes in
February 2008. The company sends a flattened box by mail to acustomer who requests product repair on the Casio Techno website.
The customer assembles the box and sends back the non-functioning
product. The company then reuses the box for the same purposes. In
addition to the repair of digital cameras and electronic dictionaries, aswell as the replacement of watch batteries, Casio Techno also beganreusing boxes for its watch repair service
in February 2009. These speciallydesigned boxes have resulted in a sharp
decline in damage to products caused by
impact during shipping. Moreover, since
they are just the right size for the intended
products, they do not contain any excess
packing material and have lower
environmental impact.

Casio Corporate Report 200923

CASIO
Development/
DesignProcurement/
Production/
Logistics

Sales/
ServiceBusiness Support

Building Strong Partnerships
Socially Responsible Procurement at Casio
Casio has established Procurement Policies in order to execute its
social responsibility to conduct fair and equitable transactions
throughout the supply chain. The policies cover matters including
legal compliance, respecting human rights, labor, safety, andhealth, as well as environmental protection and information
security. Casio constantly improves its socially responsible
procurement by obtaining the understanding and support of
suppliers for the policies and building strong partnerships.

Procurement Policies
Casio aims to fulfill its social responsibilities, including
compliance with relevant laws and social norms, andprotection of the environment, through fair and equitabletransactions throughout the supply chain by strengthening
partnership with suppliers.
1. Fair and equitable transactions
Casio carries out fair and equitable transactions by providing
equal opportunities to all suppliers (and candidates) in andoutside Japan in accordance with its internally establishedprocedures.
2. Compliance with laws and social norms
Casio’s procurement activities comply with all relevant laws,social norms, standards and treaties worldwide, including theprotection of human rights, the prohibition of child labor, forcedlabor and discrimination, and respect for freedom of association,
the right to associate, and the right to collective bargaining, as
well as ensure that absolutely no contact is made with organizedcriminal elements. Therefore, Casio requires its suppliers to
observe the same legal and social requirements.

Fulfilling Social Responsibilities Together
with Suppliers
In order to ensure compliance with the Procurement Policies
together with its suppliers, Casio has established the Supplier
Guidelines summarized at right. All of Casio’s suppliers in Japanand elsewhere have agreed to these guidelines to help Casio fulfill
its social responsibilities.
Casio is also managing its supply chain more successfully byintroducing a regular monitoring system that ensures that theseguidelines are properly fulfilled.

Disseminating the Supplier Guidelines
In fiscal 2009, Casio again held briefings on its Procurement
Policies in Southern China and Thailand. The briefings wereattended by a large number of suppliers, and proved very
successful in building support for the Policies and Supplier
Guidelines. In order to raise awareness of these policies andguidelines among even more stakeholders, they have been postedon the Casio website.

5. Policies on supplier selection and transaction continuation
Casio initiates and continues transactions with suppliers basedon comprehensive evaluation criteria, which include compliancewith laws and social norms, environmental protection, proper
information security, respect for intellectual property, sound andstable corporate management, superior technologicaldevelopment ability, right price and quality, stable supply
capabilities and electronic transaction systems.
6. Securing right price and quality
Casio endeavors to secure right price and quality in order toprovide its customers with stable supply of optimal products,
which ensures that Casio gains the full confidence of customers
around the world.
7. Prohibition of personal-interest relationships
Casio does not allow any employees to have personal-interest
relationships with any suppliers.

Casio is provided with materials by so many suppliers for
its global business operation. Under the situation, we
believe that it is of primary importance for Casio to fulfill its
social responsibilities throughout the supply chain including
its suppliers. In order to accomplish this objective, Casio
would like to ask all of its suppliers to implement thefollowing requirements:
11. Compliance with laws and social norms
Casio gains full confidence of customers around the world not
only through providing optimal products but also throughcomplying with all relevant laws, social norms, standards andtreaties worldwide, including the protection of human rights,
the prohibition of child labor, forced labor and discrimination,and respect for freedom of association, the right to associate,
and the right to collective bargaining, as well as ensuring thatabsolutely no contact is made with organized criminal
elements. Therefore, Casio requires its suppliers to observe thesame legal and social norms in their own areas or countries.
12. Environmental protection
Casio contributes to building sustainable societies by providing
environmentally friendly products. In this respect, Casio wants
to promote environmental activities in cooperation with its
suppliers to implement the same environmental activities for thematerials or parts comprising the product in their local processof procurement or production… (remainder omitted)

Briefing in Thailand on the Procurement Policies

3. Environmental protection
Casio helps to protect the global environment throughenvironmentally friendly procurement, which is based on the
Casio Environment Charter and Fundamental Policies, incooperation with suppliers.
4. Strengthening partnership with suppliers
Casio builds up relationship of trust with its suppliers throughreciprocal efforts, such as merging and complementing mutualtechnological development abilities, supply chain cooperation,compliance with laws and social norms and protection of the
global environment, which will benefit both parties.

Managing Guideline Fulfillment
Supplier Guidelines (Content Outline)

Supplier Message

Panasonic Endorses Casio’s CSR
Procurement System
As a supply chain partner, Panasonic Corporation understands
and agrees with the Casio Procurement Policies, and isactively participating in the improvement of Casio’s CSR
performance. We comply with all the CSR requirements
outlined by Casio, and strive to maintain this status.

Hirokuni Okada
Director
Eastern Japan Industrial Marketing &Sales Office,Corporate Industrial Marketing &Sales Division,
Panasonic Corporation

13. Proper information security
Casio requests its suppliers to keep the know-how or
confidential information that has been obtained throughbusiness with Casio or the same that is consigned to Casio by
third parties under strict management to prevent any possible
leakage thereof.
14. Respect for the intellectual property
Casio respects and protects the intellectual property of otherparties as well as its own in order to prevent unfair or illegal
usage or infringement thereof. Casio explicitly requests its
suppliers to implement the same level and nature of strict
management with respect to this issue.
15. Sound and stable corporate management (details omitted)
16. Superior technological development abilities(details omitted)
17. Securing right price and quality (details omitted)
18. Securing stable supply (details omitted)
19. Ability to deal with electronic transaction systems
As it is very important to Casio and its suppliers for efficientbusiness transactions to exchange the necessary businessinformation quickly and accurately, Casio would like to makesure, at the initiation of business, that suppliers are able toadopt the electronic transaction system… (remainder omitted)
10. Prohibition of personal-interest relationships
Procurement activities are the transactions done between thecorporations, and, therefore, Casio prohibits its employees
from having personal-interest relationships with suppliers. In
case suppliers should be confronted with Casio employee’s
inappropriate doings, please kindly inform Casio about it…
(remainder omitted)

In February 2009, a survey* entitled the 2nd Questionnaire on
Corporate Social Responsibility (CSR) Fulfillment was sent to 363
principal suppliers in Japan. The questionnaire began in theprevious fiscal year and is being carried out jointly by Japanese
production companies in the Casio Group. This year there was anextremely high response rate of 85% (310 companies), revealing
once again the strong commitment of suppliers to CSR fulfillment.
This time a question about ensuring absolutely no contact withorganized criminal elements was added to the section on fairtransactions and ethics, in light of current social conditions in Japan.
The situation for supplier CSR initiatives was ascertained fromthe questionnaire responses, and the analysis results were
provided as feedback to all suppliers, including those that did not
respond. Along with the feedback, Casio provided a simple
explanation of the CSR procurement approach that it is aiming for,and asked the suppliers to cooperate with Casio to improve thelevel of its CSR fulfillment.
* The questionnaire was carried out using a Supplier Checklist for CSR Procurement based upon the Guidebook
for Supply Chain Implementation of CSR Procurement published by the Japan Electronics and Information
Technology Industries Association (JEITA). It covered: (1) Human rights and labor conditions, (2) health andsafety, (3) the environment, (4) fair transactions and ethics, (5) quality and consumer safety, (6) information
security, and (7) social contribution.

Activities of the Compliance Committee
on the Subcontract Act
Casio has established a Compliance Committee on the
Subcontract Act which includes group companies, and is striving
to ensure all transactions comply with the Act against Delay inPayment of Subcontract Proceeds, etc. In particular, employeesthat deal directly with suppliers and outsourcers are provided with
the necessary knowledge through in-house seminars and classes
sponsored by the relevant government authorities.
In fiscal 2009, 3,243 Casio employees attended in-house seminars, and 55 people also participated in classes sponsored by theJapan Fair Trade Commission and by the Small and Medium Enterprise Agency. This training helped to raise compliance awarenessand provide employees with the necessary knowledge. Further
understanding was promoted through in-house textbooks thatfeature more concrete cases relating to Casio operations, and by
studying actual subcontract transaction situations, rather than justlearning the subcontractee obligations and the prohibited actions.
In addition, the committee obtains the latest information fromgovernment websites and email notification services, and sends theinformation directly to committee members. The news is also posted on the committee’s website, and shared with the entire group.
In offices where subcontract transactions are handled,independent audits are carried out on an ongoing basis. Casio
confirms that proper, compliant transactions are executed, byinspecting the document record of the entire series of transactions
from ordering to payment. The goal is to ensure that no problems
occur. Special priority is given to inspecting transactions of media
content and other intangibles, in order to maintain their legitimacy.
Casio will continue topromote understanding ofJapan’s Subcontract Act
among its employees, andwork to strengthen its
system for even better
compliance.
Subcontract Act compliance webpage

24 Casio Corporate Report 2009

Casio Corporate Report 200925

CASIO
Development/
DesignProcurement/
Production/
Logistics

Sales/
ServiceBusiness Support

Delivering Casio Creativity
to the World
Conveying the Casio brandthrough communication
with customers
Hiroshi Nakamura
Managing Director and Senior General Manager,
Global Marketing Headquarters

Casio is developing products that provide happiness andjoy to people in entirely new ways. The sales departments
play a major role in informing consumers about the newvalue that Casio has created, and we always strive to carryout strategic sales promotions and campaigns under aunified business strategy.
Japanese consumers in particular tend to makepurchase decisions based on information provided in retailstores. As the direct connection between customers andCasio, the sales team must make full use of the advanced
functions in third-generation digital cameras and otherproducts, in order to be able to demonstrate theirconvenience to retail staff and customers.
Our sales teams understand the latent needs ofcustomers, and this gives us a strong capacity to propose
new functions and products. It is our goal to come up witheven more great ideas than before, especially for new,environmentally friendly products and innovative
functionality.
Thanks to the worldwide sales of G-SHOCK watches,
scientific calculators and other Casio products, the Casio
brand has become a household name everywhere. With
Germany and the UK our primary bases in Europe, inrecent years we have also set up sales companies in othermajor European countries. Our sales and marketing efforts
are always tailored to the specific region. From theperspective of future growth potential, we are also actively
strengthening our sales networks in the emerging markets
of Brazil, Russia, India, and China (the BRICs). We willcontinue to strive to build an integrated global system ofsales and service, to ensure that customers will enjoy using
their Casio products for years and years to come.

Handheld Terminals forInternational Logistics

New Office Building for Casio Europe

G-SHOCK Press Eventin New YorkWith a distribution network of 300 locations worldwide,
Dachser is a major international logistics company
based in Germany. The company uses Casio’s
handheld terminals for delivery verification and cargo
tracking. After first trying out the DT-X10 model, thefirm decided to continue using Casio handheld
terminals. It adopted the new DT-X30 model and madeplans to increase the number ofdevices that it uses. Dachser
appreciates not only the highlevel of support and the model’s
outstanding and convenientdesign, but also its superior
performance scanning bar
codes under natural lighting orin dimly lit locations.

In 2009, Casio Europe GmbH combined all its office,logistics, and service locations, previously scatteredaround Germany, into a newly constructed energyefficient building. The structure features heating andcooling technology that uses geothermal exchangeequipment that lies 130 meters below ground where
the temperature remains a constant 16 °C year roundand circulates water throughpipes between the equipment
and the building. This is
expected to result in powersavings of from 30% to 45%
for the company, and to
reduce Casio Europe’s CO2
emissions by about 1,000
tons per year.

To mark the 25th anniversary of our G-SHOCK brandof shock-resistant watch, in 2008 we held a press
conference in New York and invited media outlets fromall over the world. The event
included live performances by
top musicians, and G-SHOCK
watches were on display incollaboration with streetfashion retailers, thereby
conveying the global outlookthat G-SHOCK represents.

Promoting Mathematics Education
with Calculators

Net sales by region

Sales Development in High-growth
BRIC Markets
In order to deliver appealing products to as many people aspossible, Casio is expanding its overseas sales bases.
Having already established sales companies in two of the
fast-growing BRICs, China and India, Casio just recently set up
sales companies in Russia and Brazil. These new companies
are working to expand distribution mainly for digital cameras,
which have good growth potential. They are focusing on sales
promotions at retail, and expanding points of contact
with customers.
In order to improve the value of Casio’s unique brands such as
EXILIM and G-SHOCK, the company is building close relationships
with customers through more interactive communication, and iscreating an environment that can provide even more customers
with better products.

26 Casio Corporate Report 2009

Asia and
Others18.1%
Europe13.7%

FY2009Japan
Net sales
51.7%¥518,036 million

North America
16.5%

In 2008, the 2nd Casio Global Teachers Meeting washeld in Monterrey, Mexico, in conjunction with the 11th
International Congress on Mathematical Education,
which is held once every four years. Casio was a mainsponsor of the 11th Congress. The 2nd Global
Teachers’ Meeting was attended by 31 professors andteachers from 15 countries representing practicallyevery continent. In addition to showing how calculators
have been used in various countries, the attendees
exchanged ideas on how to make calculators a moreenjoyable part of their classes,
and discussed the functions
that the ideal scientificcalculator should offer. The
event was a good opportunity
for Casio to confirm its desire
to contribute to mathematics
education for students.

Presenting the Casio Watch Worldview
at BASELWORLD

Flagship Store Opens in Hangzhou,
China

New Sales Company Establishedin Brazil in 2009

Held every year in the Swiss city of Basel,
BASELWORLD is the world’s biggest watch andjewellery show. Through displays and presentations
that convey the concept and worldview of each of its
brands, Casio uses this trade show to demonstrate theappeal of its watches to the world.
At BASELWORLD 2009,
even European buyers with a
tradition of purchasing mechanical watches recognized
the value of Casio’s watches,
which make full use ofelectronic technologies, andnumerous new sales
agreements were made.

In 2007, China began broadcasting time information
using standard radio waves, and since then theradio-controlled watch market has grown rapidly in thatcountry. In order to strengthen sales of radio-controlled
watches in China, in 2008 Casio opened its largest
store in the world in terms of sales floor space in thecity of Hangzhou, Zhejiang. In
fiscal 2010, Casio will expand
the lineup of radio-controlled
watches that it sells in China.
The company is now working
to improve sales capacity at
the store by offering better
training and bringing on
more staff.

Casio values Latin America as a growth market. In
2006, Casio Latin America was established in Miami in
the US to serve as a sales company for the entire
Central and South American region. Casio Mexico wasthen founded in 2008, and the following year Casio
Brazil was set up in Sao Paulo,
in order to expand sales in thatcountry. As one of the BRICs,
Brazil is experiencing
remarkable growth, and has
the largest geographical area,
population, and GDP of any
country in Latin America.

Casio Corporate Report 2009

27

CASIO
Procurement/
Production/
Logistics

Sales/
ServiceBusiness Support

Providing Support Information

Improving Customer Satisfaction
The Casio watch concept is presented at BASELWORLD,
attracting lots of interest.

Dynamic Photo is the world’s first digital camera function thatallows users to make composite moving images, right on thecamera. In order to show the world this exciting new technology,
Casio has developed promotional activities using various media
formats. TV commercials for Dynamic Photo show actual examplesof these composite moving images in a way that is easy tounderstand. Booths have also been set up on street corners, incommercial areas, and in theme parks, enabling passersby to havefun actually trying out the camera.
A dedicated website has beencreated for Dynamic Photo to let
users download fun moving subjects.
Users can easily decorate theirsnapshots using these animatedadd-ins to create their own works
Dynamic Photo: Expandingof art.
the imagination

Activities to Prevent Misleading
Representation
In order to ensure compliance with Japan’s Act against
Unjustifiable Premiums and Misleading Representations, Casio has
prepared its own textbook for teaching employees how to use
proper terminology in marketing. The text provides examples of
how to stipulate appropriate comparative information when using
expressions such as “No. 1,” or “world’s smallest.” Using thistextbook, a company instructor makes the rounds of Casio sales
offices in Japan, providing as many as 10 training seminars
per month.

Offsetting CO2 Emissions for Page Printers
Since page printers indirectly contribute to CO2 emissions throughthe electricity they use during printing, Casio calculated theseemissions based on the amount of toner consumed. Using thisinformation, the company came out with toner featuring a carbon
offset. When a customer purchases this toner, Casio obtains
carbon credits through a provider in order to offset the electricity
used for printing. In this way, Casio is helping customers to simply
and conveniently contribute to the fight against global warming
whenever they purchase toner.
Toner featuring carbon offset: how it works
Japanesegovernment

Dynamic Photo website

Product experience booth on the street

G-SHOCK and Baby-G Models Support
Dolphin & Whale Eco-Research
Casio has launched special watch models to support worldwide
surveys, research and educational activities relating to dolphin andwhale ecology by the International Dolphin & Whale Eco-Research
Network project, which is led by the International Cetacean
Education Research Center (ICERC) of Japan. 2008 models forthis cause, a transparent G-SHOCK and Baby-G, evoke the imageof a beautiful sparkling ocean. The G-SHOCK model features awhale illustration on the band and the EL backlight, while a dolphin
image is used on the Baby-G. In addition, the back of each case isengraved with a symbolic graphic featuring the phrase “All As
One,” expressing the way that allof nature and life itself are woven
together in a living symphony on
the Earth. Part of the proceedsfrom the sale of these models
was donated to ICERC.

Customer

Product
purchase

Electricity
consumed
during printing

Casio

No-cost transfer(invalidation)

Carbon credit
purchase

OffsetCarboncredits

CarbonoffsetProject forgreenhouse gas
reduction

1. After-sales CS: Working to earn the confidence of customers
through service that is fast, accurate, polite, and sincere.
2. Functional CS: Striving to enhance product functionality that
leads to customer satisfaction
3. Quality CS: Working to strengthen product quality to assure
customer satisfaction
With these three main CS activities, Casio is working hard toensure that customer feedback is always delivered to the relevant
departments, so that ideas for improvement can be put forward,
and product functions can be enhanced (functional CS). For
example, the company analyzes inquiries and comments about
initial setup received from customers who have just purchased adigital camera. It then submits ideas for improvement to thedevelopment departments, and these ideas are in turn used tomake new models even easier to operate.

Repair Service
The service departments provide repair service for Casio products.
In order to improve the quality of this service, the departments areworking to improve their repair technology, product knowledge,
and customer service skills by offering technical training andrunning internal competitions. In fiscal 2009, Casio introduced
online training courses for service technicians across Japan. The
customer service manual was also completely revised, as part ofefforts to improve staff skills.
Casio is always striving to improve customer convenience. To
ensure that products are repaired and returned to customers as
quickly as possible, Casio is working on the improvement of partsprocurement, its repair system,
and repair skills, all with the aimof shortening repair times. In
Japan, an online repair site has
been set up to enable customers
to easily send in their digital
cameras, electronic dictionaries,
Online training course
or watches for repair.

Skills Enhancement at the Casio
Customer Support Center
In order to promote long-lasting relationships of trust withcustomers, the Customer Support Center is constantly improving
the technical and communication skills of its staff.
To help staff acquire the knowledge necessary to accurately
answer customer questions, seminars are given within the Center
on topics such as newly released products. Operators also test
their product knowledge through an e-learning website every six
months, and efforts are made to ensure that all employees achievea passing score.
The same e-learning program is also administered to staff atcall centers outside Japan. Casio is carrying out training on a
global level to ensure accurate customer service worldwide.
To ensure that customers receive pleasant customer service
over the phone, managers provide guidance to staff based on achecklist of polite language. They also help them learn how tomake sure the customer can clearly hear their voice. The operators
use this feedback to make daily improvements.
How customer comments are utilized for products and services
Customer

Customer Support Center• Requests• Proposals• Opinions• Complaints

Repair centers

Meeting with customers• To offer productsatisfaction,amazement• To offer service
satisfaction,amazement• To create Casio
fans

Quality issue

Sales departments
Service departments

Dealers and agents
Customer satisfaction surveys
Questionnaire surveys

Color Page PrinterSPEEDIA N3600

28 Casio Corporate Report 2009

In order to help customers use their products with confidence, aproduct support area has been set up on Casio websites fordifferent countries around the world. The Support page provides
information on the operation and repair of Casio products.
Answers to frequently asked questions are provided in writingalong with illustrations toincrease visual understanding.
Site improvements are often
made: for instance, the FAQ
topics now appear in order ofaccess popularity. The
navigation of Casio websites isalso continually enhanced,
allowing visitors to find theinformation they want moreeasily. Casio strives to design its
websites so that customers canresolve online any issues theymight have.
FAQ page=

Cross Media Promotion for New Dynamic
Photo Function

In order to improve customer satisfaction (CS), in fiscal 2009,
Casio began strengthening its initiatives for the three main CS
activities listed below. The company is working to use customer
feedback more than ever before in the creation of even better
products.

=

Development/
DesignDatabase

Development departments
Information
searchNeeded improvements

Quality issue

Manufacturing departments
Quality issue
Investigation into cause
Problem solving

Investigation / analysis

Horizontal solution sharing

Deciding response

Preventive activities

Dealers and agents

Quality improvement

Needed improvements

Early detection

Customer Support Center

Products adopting
improvements

Discussion of improvements

Follow-up / identification

Service improvement

Adoption of improvements

Defect shipment stop

Repair centers
WebsiteCasio Corporate Report 2009

29

CASIO
Development/
DesignProcurement/
Production/
Logistics

Sales/
ServiceBusiness Support

Streamlining Management,
Using IT
Using IT proactively to solve
problems for the entire
business
Atsushi Yazawa
Corporate Officer and Senior General Manager,
Information Technology Department

In the past, the role of information technology (IT) was
mainly to make administrative processing more efficient.
Now, however, IT is being used as a main strategic
contributor to management and business, thanks to theimprovement of computer performance and the evolutionof the Internet. Specific examples of this include
streamlining the entire supply chain, quickly aggregating
global management information and making it highly
accessible, and enabling interactive communication within
the company.
One of the most important issues for a company isbuilding a strong corporate organization. At Casio,
administrative reform and IT utilization are being carried out
in close cooperation. While continually keeping pace withmarket changes, Casio is promoting a system forcomprehensive management of the process fromproduction to sales. Based on the idea of self reliance forinternal system construction, we are building a system thatis optimal overall, while sharing Casio’s vision for using IT
with group companies around the world.
As information technology advances, so do its uses. Of
course, identifying issues faced by business sites is still
important, including strengthening administrative speed
and competitiveness and reducing environmental impact.
Today, however, a company’s competitiveness lies infinding groundbreaking methods to improve its competitiveedge. The staff of the Information Technology Department
looks at the entire business from a management mindset,
and works to resolve issues by applying technologies thatare one step ahead. This greatly contributes toimprovement of management efficiency and speed.

Management “Visualization” throughStandardized Systems
Casio has globally introduced and developed an integrated
enterprise resource planning (ERP) system. It serves as an
information infrastructure for streamlining the core business
functions of purchasing, sales and accounting.
Operations and systems that used to be different for each siteor business have been thoroughly standardized and integrated.
This is helping to accelerate management decision-making by
making it easier to see and grasp the big picture of corporate
activities across the board.
The ERP system performs unified management of sales andinventory information. By linking this information with sales forecast
information from the market, the system is being used to establish
production plans that ensure reliable delivery of the products
customers want, when they want them. It is also driving significant
improvements in supply chain management, including the
reduction of inventories through improved inventory efficiency.
Recently, Casio introduced new technology for modularizing
common functions in the ERP infrastructure and using themgroup-wide. The modules can be customized to meet the needs ofeach site or business. In this way, Casio is striving to improve theadded value of its systems. Building systems that can rapidly
and flexibly adapt to changes in the business environment is
indispensable in making the most of IT to contribute to
the business.

30 Casio Corporate Report 2009

Sales Activity Support Using CRM
The Information Technology Department continues to make
improvements that help employees to increase productivity andcontribute to a creative business. It is doing this by providing moreintuitive computer interfaces that are easier to understand, throughbusiness support systems that are based on Internet technology.
The department developed a customer relationshipmanagement (CRM) system in house for the sales departments.
Since it is a system utilized by many sales staff, CRM employs
the latest Web technology for good usability, including simple
inputting, and ease of information retrieval. The result is a very
convenient system that would not be possible with a commercial
software package. Through the use of the CRM system, sales
activities and cooperation between the headquarters and individualsites has been streamlined. Moreover, Casio’s sales ability has
been further strengthened through the sharing of expertise forsales promotion and negotiation.

Integration of Backbone Servers andDisaster Prevention Measures
Casio is promoting the integration of its backbone servers
throughout the entire group to control server costs. Server
operation can also be made more efficient due to centralization.
By installing integrated servers in secure data centers, information
security is being strengthened group-wide.
As of March 2009, the integration of 18 core servers had been
completed, as part of an integration program being conducted notjust in Japan, but also at Casio sites in China and other countries
in Asia.
The integration of backbone servers also involves setting up
two servers in two separate data center locations. In the event ofan earthquake or other disaster affecting one location, the server atthe other location will still be able to operate.

Reducing CO2 Emissions with Green IT
In addition to the integration of core servers, Casio is also working
on the integration of other business and department servers. There
were as many as 1,000 servers across the group before integration
began. Most of them were operating 365 days a year, and thepower they consumed, as well as the corresponding CO2
emissions, was considerable. Integration was carried out by using“virtual server” technology, which involves the operation of multiple
servers within one server. This resulted in a large decrease in thenumber of servers and a corresponding decrease in the amount of
power consumed.
Reduction in the number of servers
Servers
1,500

An annual cut of about
600,000 kWh (about
218 tons of CO2 )

1,000
500
0

1,000

600

500

Before FY 2009

FY 2009

FY 2010 forecast

As of December 2008, the integration of 400 servers wascompleted. This is equal to an annual savings in electricalconsumption of about 600,000 kWh, which translates into a
CO2 emissions reduction of about 218 tons. In fiscal 2010, Casio
plans to finish integrating 500 servers, thereby halving the numberof its servers, and saving a total of 750,000 kWh per year.
In March 2009, data center air conditioners were changed toenergy-saving models, a move expected to reduce Casio’s annual
CO2 emissions by about 82 tons. The company will continue totake active measures using “Green IT” in the future.

Reducing Costs and Environmental Impact
with a New Purchasing System
Casio has built a specialized purchasing system called CATS forthe purchase of indirect materials such as office supplies, officeequipment, software, and production supplies. CATS has been
introduced in principal group companies in Japan. The supplies
bought and purchasing procedures used to vary from company tocompany in the group. With the aim of lowering purchasing costs
group-wide, the system was constructed in order to standardize allpurchasing and to allow the purchasing department to negotiate
prices with suppliers and make bulk purchases. Since everything is
performed online, from finding supplies, making purchaseapplications, and receiving authorization, to placing orders with
suppliers and performing product receiving procedures, CATS not
only improves business efficiency,
but also reduces the amount of
paper consumed in documents
such as order forms.
The online product catalog also
clearly indicates products that areeco-friendly, which makes it easy
for employees to select those
products and help promote green
CATS System helps staff findeco-products.
purchasing.

Stronger Internal Controls through
ISMS Certification
In February 2008, the Information Technology Department of Casio
Computer Co., Ltd., and Casio Information Service Co., Ltd.,obtained ISO/IEC 27001 certification, which is the international
standard for information security management systems (ISMS).
The aim was to maintain and improve Casio’s high-quality
information security, and to establish internal controls incompliance with Japan’s new Financial Instruments andExchange Law.
ISMS is a framework for the ongoing operation of systems forsetting security levels based on rules and risk assessment, thathelps companies and organizations to secure and maintain theirown information security. These Casio organizations implemented
management measures based on set targets and an information
asset risk assessment, while ensuring thorough awareness of rules
for the proper management of information assets. Security
conditions are confirmed through regular inspections and audits,and problems areas are promptly corrected and improved, whichleads to better security. In the future, internal controls will befurther strengthened through these activities, and even tighter
security will be promoted across the group.

Casio Corporate Report 200931

Management

Corporate GovernanceCompliance and Risk Management

To increase corporate value, Casio always strives to improve management integrity and transparency.
True to this commitment, Casio works to ensure that management decision-making is quick and that all
operations are executed properly and efficiently.

The Charter of Creativity for Casio, the Casio Common Commitment, and the Casio Code of Conduct form
the foundation that governs the behavior of all Casio employees. Casio has also established a risk
management system and Whistleblower Hotline. This three-in-one approach represents a robust means of
ensuring compliance.

General Meeting of Shareholders

Accounting
auditorDirectors
Board ofDirectors

Board ofCorporate
Auditors
Audit
staff

President
and CEO

Corporate officers
Internal
Audit
Department

Board ofCorporate Officers

Election anddischarge
Accounting
audit
Audit
Oversight

Business divisions
Group companies

Internal audit
Appointment,
dismissal, andoversight

10 directors and 3 corporate auditors, 2 of which are external auditors (as of March 31, 2009)32 Casio Corporate Report 2009

* A system required for listed companies under Japan’s Financial Instruments and Exchange Law, effectivefrom the fiscal year ending March 31, 2009, intended to secure the reliability of financial reporting. Eachcompany evaluates its own internal controls, and then is audited by external auditors, before submitting aninternal control report to the prime minister of Japan.

For more details on corporate governance, visit the following site.
Corporate Governance Reports(Tokyo Stock Exchange: Search for Corporate Governance
Information)
URL
http://www.tse.or.jp/english/rules/cg/index.html

Provisions of the Casio Group Code of Conduct
1. Purpose
2. Basic Policies
3. Code of Conduct
3-1. Compliance with Laws and Ethics
3-2. Respect for Human Rights
3-3. Provision of Safety and Peace of Mind to Customers
3-4. Fair Competition and Transactions
3-5. Separation of Personal Affairs from Business
3-6. Information Protection
3-7. Environmental Conservation
3-8. Disclosure of Corporate Information
3-9. Maintenance of Social Order
3-10. Social Contributions

Risk management system
CSR Committee
Internal Audit Department
Chief Risk Management Officer
Risk Management Committee
Main risk
management
departments

Staff function departments

Fiscal 2009 Activities
The following is a report on risk management activities undertaken
in fiscal 2009, according to the PDCA cycle.

Selection of Risk Management Themes Plan
Continuing from the previous year, the risk management themes
selected for fiscal 2009 had to do with compliance. However, after
evaluating the selection method used the previous year, in order to
identify risks more objectively, detailed standards regarding thelevel of potential risk impact were established. Consequently,
objectivity was increased for the analysis and evaluation of risk
based on both potential impact and probability of occurrence, andgood results were achieved for evaluation consistency.
Risk prioritization using probability of risk occurrence and level ofpotential impact(High )Risk
A

4. Implementation of the Code of Conduct
5. Handling Violations

Risk Management
In May 2006, Casio established Basic Risk Management Policies,
building a solid risk management organization designed toefficiently manage risk.
Specifically, a Risk Management Committee chaired by the
Chief Risk Management Officer has been established under the
CSR Committee. The Risk Management Committee discusses andmakes decisions for selecting and addressing important risk
management issues.
The main risk management departments are the internal staff
function departments. They proactively carry out measures toaddress risk management issues, and raise awareness among
relevant departments in the group.
The Risk Management Committee Secretariat operates amanagement system based on the plan-do-check-act (PDCA)
cycle, and oversees the progress of risk management activities.

Risk
Management
Committee
Secretariat

Risk
management Casio Computer Co., Ltd., Group companies
departments

Risk
B

Probability ofoccurrence(Low )➝

SubCSR
committees Committee

Corporate
auditors

Japan’s new Financial Instruments and Exchange Law has
mandated the establishment of internal control reporting systems*
effective from the fiscal year ending March 31, 2009. Accordingly,
Casio has established basic policies to ensure the accuracy andreliability of its financial reporting. It has also set up an Internal
Control Committee composed of members of the Accounting
Department, Information System Department, CSR Operations
Section, and Internal Audit Department, in order to secure aneffective internal control system.
In fiscal 2008, documentation of important business processes
was carried out according to standard guidelines applying to theentire group. In fiscal 2009, a monitoring system and rules were
established in order to identify risks that can impact financial
reporting in the key business processes of main departments andgroup companies at an early stage. Each Casio site carries out self
inspections to check whether operations are being performed
according to documentation, and the results are regularly reported
to the Internal Control Committee.
The Internal Audit Department, which is independent of thebusiness divisions, also evaluates the internal control
establishment and operation conditions, based on group-wide
evaluation standards.
Through the activities outlined above, Casio checks that eachsite is always carrying out its operations in a proper manner.
Whenever problems or inefficiencies are discovered during thisprocess, improvement plans are prepared and implemented basedon consistent policies of the Internal Control Committee.
Going beyond the formal steps required by the law, Casio has
been constructing internal controls with real effectiveness andtaking advantage of the opportunity to improve operations. The
company is establishing and executing methods and rules on its
own initiative. This included evaluation and improvements in fiscal
2008 based on process documentation performed in fiscal 2007.
The entire group will continue making quality improvements to
its internal control system from fiscal 2010 onward, throughimprovements and continuous implementation of theaforementioned activities.

The Casio Group Code of Conduct represents a promise from allof Casio’s directors and employees to observe relevant laws andethical standards during the execution of their occupational duties,
and also in their daily lives, as responsible members of society.
Casio made changes to the Code of Conduct in May 2008 toreflect revisions in Japanese law and meet society’s changing
expectations, also taking the chance to improve the precision of
the document. The scope of applicability was clarified, additions
and revisions were made to the conduct items, and items were put
in order of priority.
With this major revision of the Code, it was given a new nameto include all the companies of the Casio Group, worldwide.
Japanese and English versions of the code were prepared toserve as the basis for translation into other languages by individual
group companies, encouraging full understanding among allgroup employees.
To promote awareness of the newly revised Casio Group Codeof Conduct, special training sessions were carried out at groupcompanies in Japan, and a compliance questionnaire wasconducted on topics including the Whistleblower Hotline and theCharter of Creativity for Casio and Casio Common Commitment.
The questionnaire results were analyzed by the Risk Management
Committee Secretariat, and issues were identified by topic. Each ofthese issues will be reflected in an action plan for fiscal 2010.

The Internal Audit Department performs audits of thismanagement system, independently from the risk management
activities.

➝

Corporate governance framework

System of Internal Control

Casio Group Code of Conduct

Management

Casio recognizes that quick decision-making, proper execution ofoperations, and a robust management oversight function that
increases the integrity and transparency of business management
are extremely important factors in achieving business goals andcontinuing to raise corporate value. This recognition guides Casio’s
ongoing efforts to improve corporate governance.
In June 1999, Casio adopted a corporate officer system thatclearly separates the management oversight and executionfunctions. Meetings of the board of corporate officers are attended
by corporate officers, directors and corporate auditors. They
deliberate on important affairs relating to the execution of business
operations, and this mechanism enables implementation of groupwide adjustments and measures.
The board of directors is tasked with making prompt,
reasonable management decisions. Board meetings are attended
by directors and corporate auditors, who discuss and makedecisions on important business issues. Furthermore, in order toclarify the management responsibility of directors and to ensure a
prompt response to changes in the business environment, theterm of office of directors was changed from two years to one, asof June 2007.
In accordance with audit policies approved by the board ofcorporate auditors, corporate auditors (including external auditors)
attend board of directors’ meetings, meetings of the corporate
officers, and other important meetings. In addition, they perform
careful audits by gathering information and receiving reports fromdirectors and others, and by reviewing resolution documents
relating to important decisions.
Accounting auditors perform external audits according to
generally accepted Japanese auditing standards, and they also
provide recommendations for operational improvement. The
Internal Audit Department carries out audits of Casio operations toensure they are in conformity with laws and regulations as well asinternal standards such as the Organization Control Standard.

It also conducts evaluations and offers recommendations
for improvement.
Casio also has a CSR Committee consisting of the directors
and corporate auditors, which is chaired by the president of Casio
Computer Co., Ltd. It discusses basic policies and vital mattersrelated to group-wide CSR activities.

Risk
C

(Low

)
(➝ High)
Level ofpotential impact➝

Corporate Governance Framework

The Risk Management Committee Secretariat performed
analysis and evaluation, and exchanged opinions with in-house
experts on identified risks. Upon approval from the CSR
Committee, the risk management themes for fiscal 2009 were
determined by the Risk Management Committee. At the sametime, measures were divided into the categories of “highest
priority” and “priority,” according to the degree of urgency. A totalof 20 risk management themes were addressed in fiscal 2009,
along with issues where targets had not been achieved in theprevious year.

Casio Corporate Report 200933

Management

Risk Management Activities Do

Evaluation of Risk Management Activities

Check

At the end of the fiscal year, the secretariat carried out aperformance evaluation and a system effectiveness evaluation forrisk prevention measures promoted by the main risk management
departments. The departments first used a prescribed evaluation
sheet to determine whether their risk management activities oneach theme were carried out according to the initial plan, andwhether their systems functioned effectively. The results were thensent to the secretariat for evaluation.
After the evaluation was complete, the Internal Audit
Department performed an audit. This audit focused primarily on
whether management systems had been properly implemented,
maintained and operated.
The secretariat also performed monitoring of risk management
themes where targets had been achieved in fiscal 2008, while
confirming status of progress on an ongoing basis.

Responding to Emergencies
The environment in which companies operate presents a variety ofrisks, and responding to incidents quickly and flexibly is a crucial
aspect of business management. In the event of an emergency,saving human life takes first priority, and this requires an initial
response that is both rapid and appropriate.
In order to respond to these contingencies with the resourcesof the company organization, Casio has created a Crisis
Management Manual for securing the safety of all employees,
directors, and their families, preserving corporate assets, andmaintaining business activities.
Sequential updates of the manual keep pace with changes inthe business environment, and the company is taking practical
initiatives at the same time. Specifically, the following measures
have already been undertaken:• Evacuation drills for employees• Development and in-house distribution of disaster prevention
support tools• Construction of a system to ensure absolutely no contact withorganized criminal elements• Disaster prevention drills and disaster stockpiling in cooperation
with local communities.
In addition, an action plan to prepare for an influenza pandemic
has been set as a priority issue, and Casio is striving to improve its
overall crisis management and response capabilities.

Information Security

Whistleblower Hotline

Casio is aware of its important social responsibility to maintain the
security of information that it collects from customers and otherstakeholders in relation to its business activities. Casio strives tomaintain the highest level of information security. With the full
implementation of Japan’s Act on the Protection of Personal
Information, Casio launched the Protection of Personal Data
Project. Furthermore, as part of Casio’s drive to strengthen its
system for safe and proper handling of personal data, Casio
Computer Co., Ltd., worked to qualify for the Privacy Mark*certification and received it in December 2005. Since obtaining
certification, Casio has been properly carrying out the plan-docheck-act (PDCA) cycle to maintain its personal information
protection management system. Along with the revision of JIS Q
15001 in May 2006, the company revised its applicable rules, andworked to strengthen supervision of information consignees,
receiving renewed certification in March 2008.
In fiscal 2009, these personal information protection activities
were expanded from Casio Computer Co., Ltd., to other groupcompanies, as part of efforts to strengthen internal controls. Casio
promoted the same system for personal information protectionused at the parent company, focusing on groupcompanies that handle large volumes of personal
information. Going forward, Casio will keep
strengthening information security and personal
information protection throughout the group to
further increase stakeholder confidence.

As way to help ensure compliance, Casio set up a Whistleblower
Hotline in April 2006. The hotline has been functioning withneutrality and fairness across all of
its internal and external contact
FY 2009 Whistleblower
points. The goal is to prevent risks
Hotline callsfrom developing into real problems,
and the Hotline Office responds toCalls relating
all calls and requests forto interpersonal
relations in the
consultation, working hard to
workplace: 1
counter any improper behavior.
Other: 4
In fiscal 2009, 13 calls wereCalls relating to
occupational
made to the hotline, about half thehealth andnumber in the previous year.
Calls relating
safety: 5
Employees that were the subject
to internalof hotline reports were given training
rules: 3
and guidance along with proper
treatment based on internal rules, aspart of efforts to prevent reoccurrence.
In fiscal 2009 a Whistleblower Hotline questionnaire was given
to group employees in Japan. Specific issues were identified fromthe results, and will be reflected in future operations.
Whistleblower Hotline
Whistleblowers
Hotline* A program where the Japan Information Processing Development Corporation, a public-service foundation, evaluates
the adequacy of corporate protective measures related to the handling of personal data. Companies that are found tohave adequate protective measures in place are certified and permitted to display the Privacy Mark.

Internal hotline

Personal information protection system

External hotline agency

CSR Committee
Officer in charge of audits

Review of Risk Management Activities Act
Audit results are reported to top management, along with thesecretariat’s evaluations of performance and systemeffectiveness. Top management reviews these evaluation results
and issues the necessary instructions for improvement with regard
to risk management activities or management systems. There wereno significant instructions required after the fiscal 2009
management review.
Thanks to this management cycle, in fiscal 2009 positive results
were obtained in the internal audit by the audit department and in
the evaluation by the secretariat. Initial targets were achieved for
14 themes.
The remaining 6 themes will be addressed as continuing risk
management issues in fiscal 2010, through ongoing activities.

34 Casio Corporate Report 2009

Personal Information
Protection Office
Person responsible
for customer service
Contact for matters relating
to personal information

In 2008, the Hatsudai Headquarters of Casio Computer Co., Ltd., set up an aid station aspart of the “Coordinated Practice for Walking Home after a Disaster in the National Capital,”sponsored by the Tokyo Volunteer Network for Disaster Relief.

Chief Privacy Officer (CPO) andpersonal information manager

Management

The main risk management departments prepare annual risk
management programs on each of the risk management themes,
and promote individual risk prevention measures according to theprogram schedule. Along with the establishment of new
timeframes for achieving targets for themes not achieved in fiscal
2008, the departments promoted improvements on unsatisfactory
items indicated in internal audits, and worked hard to quickly reachtargets. On these activities, the secretariat performed progress
checks once every quarter. Risk Management Committee
meetings were held twice during the year, where policies andgoals were confirmed, progress made on individual risk
management themes was announced, and the overall level ofprogress was verified.

Investigation

Hotline Office
Reporting

Improvements/
notification

Applicable departments

Instructions

Top management
Person responsiblefor information systems

Person responsible
for education

Person responsible for departmental
personal information management
Person in charge of departmental
personal information management

Employee Message

Since Japan’s Personal Information Protection Law came into
effect, every day the newspapers have stories aboutcompanies mishandling or leaking personal information. Mostof these cases are due to small
oversights or errors on the part of
employees.
In order to prevent such
incidents at Casio, we emphasize
raising the awareness of all
employees, and everyone in the
Personal Information Protection
Office is working together tostrengthen our information
Rie Sato
protection systems, focusing on
Personal Information
training and awareness campaigns. Protection Office

Export Control
In 1987, Casio Computer Co., Ltd., established the Export Control
Security Program of Casio Computer Co., Ltd. (a complianceprogram) in order to make sure proper measures are taken to
ensure the security of exports, thus helping to maintaininternational peace and security. The program has since been
continually updated along with changes in the Japanese Export
Control Regulation.
Casio has appointed employees responsible for export control
in relevant departments as part of an internal system to ensure
observance of the program.
As relevant regulations are revised, the needed training updates
have been given to the employees responsible for export control.
Casio is committed to total legal compliance, and ensures that the
program is properly maintained and managed through annual
self-audits.

Casio Corporate Report 200935

Environmental Management

Environmental Management Policy
In all of its businesses, Casio strives to achieve solutions to global warming and other problems related
to natural resources and energy. To overcome the crisis facing the earth, Casio is proposing andimplementing solutions across all of its operations.

• Steady enforcement of the roadmap to innovative technology development• Upgrading coal use • Huge increase in the installation of solar power generation facilities• Introduction of next-generation vehicles • Changing from incandescent light bulbs to
low-energy lamps • Accelerating the introduction of energy-efficient televisions, water
heaters, air-conditioning, and refrigerators • Promoting energy-efficient housing and officebuildings, and “200-year Housing” • Promotion of nuclear power

The “sectoral approach and support” listed above requires
efforts made by industry across national boundaries, and total
goals for each country are to be set this year. These will be
developed into goals for individual industrial associations, andCasio will then establish new targets based on these goals.
When efforts to reduce carbon footprint*1 become established,companies with superior environmental technologies for savingenergy and conserving resources will win the support of themarkets, but companies with higher CO2 emissions than theircompetitors will likely be forced out of business.
Trends in US and Worldwide Environmental Policies
US President Barack Obama, elected in 2008, has alreadyannounced the following five energy policies (New Energy For
America*2) and has expressed the intent to invest the equivalent of¥15 trillion in these policies over the next 10 years.
(1) Create five million new jobs; (2) Put one million hybrid cars on the road by 2015; (3) Ensure that
10% of electricity comes from renewable sources, such as wind power, solar power, andnext-generation biofuel, by 2012, and 25% by 2025; (4) Reduce greenhouse gas emissions by 80%
of 1990 levels by 2050; and (5) Reduce oil imports

It is particularly noteworthy that a specific numerical target forgreenhouse gas emissions has been incorporated into this plan,suggesting that the US will demonstrate leadership on theprevention of global warming moving toward 2050.
With regard to international frameworks, efforts are being madeto reach a consensus at the Conference of Parties 15 (COP15),
which is scheduled to be held in December 2009, but it continues
to be difficult to align the interests of the developed and developing
nations.
*1. Carbon footprint: An indicator showing the amount of CO2 needed to sustain a product from its inception
to its disposal using the life-cycle assessment (LCA) method. This indicator will be included on packages
so that it can be used by consumers in selecting which products they want to buy.
*2. New Energy For America: This is generally referred to as the “Green New Deal” or the “Green Jobs Policy.”

36 Casio Corporate Report 2009

Special Committee
Chairpersons

Division Managers▼

II. Dissemination of innovative technologies and existing
advanced technologies

Secretariat

New Green ProductDevelopment Conference
Product Environment Laws
Study Working Group
Product Environment Index
Study Working GroupSpecial Committee
on Packaging
Special Committee on
Green Procurement
Environmental Accounting
Committee
Special Committee
on Green Purchasing▼• Emissions trading• Tax system (Making the tax system greener,
global environment tax)
• Visualization (Disseminating the “carbon
footprint” system, etc., creating rules for carbon
offsetting and carbon accounting)

Chairman: Yukio Kashio, Executive Vice President
Environmental Auditing Organization
Director with
Overall Responsibility for
Casio Sites▼

III. Framework to move the wholecountry toward reduced carbon

Casio Environmental Conference

Director with Responsibility
for R&D and Staff
Departments▼• Building agreement on a fair, equitable,
and effective post-2012 framework• Setting quantified national targets• Support for other countries’ efforts(1) Dissemination of technologies throughthe sectoral approach and support(2) The Cool Earth Partnership(3) Establishment of a multilateral fund

Structure of the Casio Environmental Conservation Committee

Director with Responsibility
for Sales Departments,
Subsidiary Presidents

Main Subsidiary
Presidents▼

I. Japan’s targets

Keeping step with these global trends, Casio will tackle thefollowing environmental management issues in fiscal 2010
and beyond.
(1) Some environmentally advanced companies have alreadydeveloped their environmental management policies with a
2050 target date. The global warming prevention policies
adopted by such companies always include largely reduced
numerical targets aimed at cutting their environmental impact
by 1/8 to 1/10 of current levels. Casio has also reached a point
where it must launch efforts aimed at establishing ultra-longterm targets for 2050. The Environment Center is playing a keyrole in investigating the direction Casio must take in the future.
(2) The range of acquired environmental performance data for theentire group is divided into emissions produced by Casio itself
and emissions produced by its contractors. To gain a better
sense of the total framework, Casio is promoting surveys ofparts for which data has yet to be acquired.
(3) At its office sites located both in Japan and abroad, Casio is
working to achieve reductions in the total volume of CO2
emissions, not just reductions per unit of production. Even at
Casio’s production sites, a switch will be made from per-unit
reduction goals to total-volume reduction goals. The total
reduction goals of Casio’s production sites will be challenging,but Casio is committed to demonstrating leadership in this area.
(4) SF6, a gas commonly used in the process of manufacturing TFT
LCDs, is not used in very large quantities, but since its warming
factor is extremely high—23,900 times that of CO2 —Casio is
working on efforts to eliminate or reduce its use. At thelaboratory level, researchers have already confirmed that it canbe replaced with F2 gas, and studies are underway to movetoward the mass production of this alternative gas.
(5) Casio has been working to develop innovative products using
its core competence in technologies for making products thatare more compact, lightweight, slim, and energy-efficient.
Going beyond this, Casio is developing its own index formeasuring improvement in the environmental impact of Casio
products and manufacturing processes and its environmental
management, and for setting environmental action targets inthe future.
(6) Environmental technologies developed in Japan can do muchto help build a low-carbon society. Casio data projectors andelectronic dictionaries, for example, are accelerating the shift topaperless work styles: life-cycle assessments have confirmedthat these products help reduce emissions. Going forward,
Casio will continue to promote paperless lifestyles, improveadministrative efficiency, and save energy and resources bycreating devices that can be used in “green offices.”(7) Casio’s Green Product development began eight years ago inJune 2001. Starting in fiscal 2010, under its Green Star Productproject, Casio will further strengthen its technologies for making
products that are compact, lightweight, slim, and energyefficient, and is considering introducing an environmental
symbol or carbon footprint indicator on its packages to informcustomers.
These priorities make it clear that helping to build a low-carbon
society will be a key focus of Casio’s environmental management
strategy in fiscal 2010. Casio will make the most of its
environmental management system to achieve both environmental
preservation and profit growth, continuing to create success inboth areas.

Environmental Management System
Environmental Management

At the end of July 2008, following the G8 Hokkaido Toyako
Summit held July 7–9, 2008, the Japanese Cabinet approved theAction Plan for Achieving a Low-Carbon Society. The plan
commits Japan to take measures to combat global warming tomeet targets set for the year 2050.
Referencing the long-term goal of a 50% reduction in total
global greenhouse gas emissions by 2050 compared to current
levels, the plan includes a long-term goal for Japan of reducing
emissions by 60% to 80%. The key to achieving these long-termgoals is taking steps now to ensure that the world’s total emissions
peak within the next 10 to 20 years. Work must therefore be done
to promote the following specific measures.

Environmental Management to Builda Low-Carbon Society▼

The Fight against Global Warming inand outside Japan

Implementation
organizations

Implementation
organizations

Implementation
organizations

Implementation
organizations

Implementation
organizations• Product Categories• Consumer• Timepieces• QV• System• Communications• Electronic components• Hatsudai
Headquarters• Hachioji R&D Center• Hamura R&D Center• R&D and Staff
Departments• Sales Departments• Branches• Sales Offices• Japanese
Consolidated
Sales Subsidiaries• Overseas
Consolidated
Sales Subsidiaries• Japanese
Consolidated
Production
Subsidiaries• Overseas
Consolidated
Production
Subsidiaries

Casio Green Star Concept

Casio Green Star Products (Eco-Products)

Recognizing its social responsibility as a product manufacturer,
Casio is stepping up efforts to ensure that its products contributeto sustainability. Looking at every stage of the product life cycle, in
fiscal 2010, the company began certifying products withparticularly low environmental impact across the life cycle as Casio
Green Star Products.
Casio Green Star Concept diagram• Development of products

whose function yields very highenvironmental performance• Resource conservation throughthe use of IT

Under the Casio Green Product (CGP) project, Casio conducts
preliminary assessments of the environmental impact of new
products at several stages: planning, design, and component
configuration. The goal is to minimize environmental impact acrossthe entire life cycle of the product. This effort is guided by the
Casio Voluntary Plan for the Environment. Based on the results,
products and services that meet Casio’s environmental criteria arecertified as “Casio Green Products.” Given how effective thisprocess has been, in fiscal 2010, Casio began certifying the bestof its Casio Green Products as Casio Green Star Products.
These products meet even more rigorous assessment criteria,
and Casio hopes they will inspire people to choose moresustainable lifestyles.
Assessment categories• Good efficiency 3Rs• Improved recyclability
rateGreen Star
Design• Procure safe parts• Parts with highTarget: 30%
Casio Green Star Products

environmental
performance

Casio Green Products

Green Star
Procurement

Green Star
RecycleCasio
Green Star Product
C.G.S.P.
Green Star
Logistics

Green Star
Factory

Assessment criteria
for each productGreen Product Assessment

1. Power consumption during use reduced by 20%

2. Designed for recycling

2. Solar batteries used and Eco Mark acquired

3. Components of products can be separated,disassembled

3. Use of solar batteries and long-life structure

4. Improved recyclability

4. Comes with a 10-year battery and long-life structure

5. Reduced resource volume

5. Body volume reduced by 20% or more

6. Reduced resource weight

6. Weight reduced by 20% or more

7. Improved energy efficiency

7. Load ratio reduced by 20% or more due to morecompact packaging

8. Regulated use of chemical substances

8. Uses 30% or greater recycled plastic

9. Recyclability of batteries• Transportation methods
with high environmental
performance

Green Star
Packing• Optimization of loading• Factories with strong
environmental
performance• Transition to

renewable energy

efficiency

loading efficiency• Packaging with excellent
3R features

9. Uses 25% or greater bioplastics

14. Preserves the natural environment

10. Contains no specific hazardous chemical substances(polyvinyl chloride)
11. Improvement of 10% or more over the conventional ratio
based on an LCA environmental assessment
12. Improvement of 10% or more over the conventional ratio
based on product environmental efficiency
13. Has functions that make considerable contributions toenvironmental performance
14. Has functions that contribute to the reduction in resource
use through IT• 90 points or more,out of a total 100 points possible• When products meet the Green Product standards
and also fulfill a criterion above.

10. Recycling label on batteries
11. Regulatory compliance
12. Components of packaging can beseparated, disassembled
13. Regulated use of packaging materials• Optimal packaging for

Casio Green Star Product Assessment

1. Promotes recycling (labeling ofmaterials contained)*Casio Green Star Product certification standards may vary for some products.
*These standards will be periodically revised to keep pace with environmental advances.

Casio Corporate Report 200937

Environmental Management

Initiatives to Build a Low-Carbon Society
Casio views the air as “a valuable and limited resource,” and treats it with care. Casio is striving tominimize CO2 emissions resulting from its business activities and the consumption and use of its
products. Casio will continue to contribute to society by creating environmentally friendly products.

Through
Sept. 2008
Number of servers
integrated (machines)
Annual electricity reduction (kWh)Diagram of the use of geothermal heat

Casio Europe

Hachioji R&D Center
The Hachioji R&D Center does not simply rely on the infrastructuraladvantages offered by its energy-saving design and construction,
but has also been commended for smaller-scale adjustments tothe management of more subtle factors in energy use, such as
lighting and air conditioning equipment settings. In fiscal 2009, thecenter earned a AAA rating from the Tokyo CO2 Emission
Reduction Program, and was listed among the Awards for
Excellence in Factory Energy Management* sponsored by Japan’s
Ministry of Economy, Trade and Industry (METI). The center
followed in the footsteps of Casio headquarters, last year’s winner,
to take home the Kanto Bureau of Economy, Trade and Industry
Director’s Award. As the Casio Group’s model office, the center
will continue to engage in environmentally friendly activities to help
build a low-carbon society.
* To rationalize energy use and contribute to the effective use of fuel and electricity, this award program wasdeveloped to promote greater levels of energy efficiency by recognizing factories and workplaces that set
the pace for other facilities through their tireless efforts to promote effective energy management.

A tm osphere - greenhouse gases

Oct. 2008 –Dec. 2009

Cumulative total

360

140

500

540,000

210,000

750,000

Annual CO2 reduction (tons-CO2)

196.0

76.2

272.2

Number of Japanese cedar trees
needed to absorb the same CO2

14,0005,440

19,440Using projectors to reduce CO2
Thirty-nine percent of Japan’s energy consumption is a result of
everyday living, with households accounting for 9.5% and offices
accounting for 13%. Efforts to reduce carbon use have beensomewhat sluggish in both sectors.
Consider, for example, the paper used in offices. If meetings offive people who are given 60-page information packets are held
100 times a year, and this continues for five years, a total of
150,000 sheets of paper will have been used. The CO2 emitted in
the manufacture of 150,000 sheets of paper is 825 kg-CO2, while
the CO2 emitted in printing on 150,000 sheets of paper is 201 kgCO2. Further, the paper used, converted into a number of trees,
represents about 13 Japanese cedars.
Holding paperless meetings would prevent the cutting of theequivalent of 13 trees a year, which, if they were to live to an ageof 50 years, would be able to absorb 9,030 kg-CO2.
Casio’s data projector is essentially a proposal to change
people’s values. It supports small meetings and creative tasks bymaking meetings paperless (saving trees), PC-less (saving
electricity), and “spaceless” (portable enough to use in any smallroom), thereby contributing to the adoption of Green IT in offices.
Creating products that move beyond environmentally sensitive
design to the active proposal of new values for the realization of alow-carbon society is going to become increasingly important in
the future.

Sun

sp
ac
e

23,900 times
the global
warmingfactor of CO2

ed
int
o

Greenhouse gas
Sulfur hexafluoride(SF6)tha e a r t h
t t ch e s
a

H

t
ea

em

itt

ed

m
fro

rth
ea

lar

So

H e a t t h at
r e a ches e
a

s

ray

r

Greenhouse gas
Carbon dioxide
CO2

Earth
Heat emitted from earth

Assessment categories

Forest Protection Initiatives
The world’s forest resources are being reduced at an alarming
rate: forests equivalent to the land area of Japan disappear every
five years. Japan is a major consumer of lumber, relying on imports
for 80% of its lumber needs.
Casio is uniquely positioned to help protect forests in several
ways: (1) by digitizing content; (2) by minimizing product packaging
and distribution packaging; and (3) by growing and protecting
greenery through volunteer activities.
By digitizing content and minimizing product and distribution
packaging, Casio helps to: (1) diversify record-keeping media toreduce the amount of paper consumed; and (2) minimize theamount of energy consumed through recycling.
Casio employees also participate in volunteer activities forcultivating and protecting forests. Employee activities to cultivate
and protect local greenery include cutting the undergrowth andthinning watershed protection forests at Kofu Casio. Employees
also work to protect roadside trees at Yamagata Casio. At Casio
Electronics (Shenzhen) in China, they have organized greenerypromotion campaigns and treeplanting activities.
Forests are treasure troves of
biodiversity, and they provide a

SF6 is a greenhouse gas commonly used in the manufacture of
LCDs, but is has a high warming factor. With a factor about
23,900 times that of CO2, SF6 presents a serious climatechange issue.

at
re
lea
s

Reducing power consumption by integrating servers
Casio has been promoting a series of “information infrastructurereforms” since 2003. In 2005, the company launched its “officeenvironment reforms,” the third of its reform efforts. In fiscal 2010,
Casio achieved the goals of its office environment reforms, which
aimed to optimize the entire company’s IT infrastructure using
virtual technologies. These efforts were designed to dramaticallyreduce server costs, improve security, and address environmental
problems. Of the reforms adopted, the effort to integrate servers
using virtual technologies resulted in the integration of 400 of the
1,000 servers scattered around the group by December 2008.
There are now plans to integrate 500 servers, the original target
number, by March 2010.
Integrating servers saves a tremendous amount of power,
cutting annual power consumption at Casio by 750,000 kWh andreducing CO2 emissions. With such remarkable results, this projectis a lead component of Casio’s Green IT efforts.

He

Casio Europe
Casio’s office sites have shifted from focusing on reducing CO2 perunit of production to cutting the total volume of CO2 emitted. In
January 2009, Casio Europe integrated its offices, logistics center,and service center, which had previously been located in separate
locations around Germany, into a new energy-efficient building.
The building has an innovative air conditioning system. To heat orcool the building, water is pumped from geothermal exchangeequipment 130 m below ground and circulated through pipes
embedded in the concrete ceiling and floor of the building. Also,
thanks to blinds that automatically open and close depending on
the weather, and systems to control room temperature throughappropriate ventilation, the system consumes 30% to 45% lessenergy than conventional heating and cooling systems.

Developing an Alternative to SF6 Gas
Environmental Management

Efforts in the OfficeContributing to Green IT

thJapan’s Action Plan for Achieving a Low-Carbon Society, a policy
aimed at preventing global warming with a target year of 2050,
was approved by the Japanese Cabinet at the end of July 2008.
The plan explicitly states that, for the entire world to meetgreenhouse gas reduction targets, Japan must reduce its longterm emissions by 60% to 80%. Since Japan is an environmentallyadvanced country, the plan also calls for Japan to contribute its
environmental technologies to the world.
“Environmental management to build a low-carbon society” will
be an important part of Casio’s environmental management strategy
in fiscal 2010 and beyond. Casio is actively promoting efforts to
reduce greenhouse gases (CO2 and SF6) and to help build a lowcarbon society by offering products that contribute to “Green IT”
and paperless lifestyles. The company is also introducing Casio
Green Star Products representing a new level of green performance,
making environmental investments—including energy-efficientequipment and machinery at production sites and office sites—andcontinuously improving its logistics and packaging materials.

host of ecosystem services. Everyone relies on forests for life, andCasio is no different.
Casio can help by creating products that safeguard thelongevity of those ecosystem services.

He
re a

Approach to CO2 Reduction

Heat released into space

Panel describing the greenhouse gas SF6 exhibited at Eco-Products 2008.

Casio has prioritized the development of an alternativetechnology for SF6 to help build a low-carbon society. As a result,in 2008, Casio successfully developed an LCD manufacturing
technology using F2 gas, which has a warming factor of zero. To
bring this solution to the marketplace, issues related to LCD mass
production, such as the costs related to gas supply, need to beresolved. Today, Casio is working on technological developmentswith a view to realizing mass production using F2. This has thepotential to reduce greenhouse gas emissions to about
1/100th of the level of conventional technologies used in gas
scrubbing equipment.
The goal of LCD makers in Japan for reducing emissions of SF6
and PFC by 2010 is to “reduce total emissions to the levels
recorded in 2000 or lower.” The opinion on medium-term
measures for reducing emission of three gases, including
fluorocarbon substitutes provided by the global warming
prevention subcommittee of the chemistry and biology taskforce of
the Industrial Structure Council, organized by METI, states first theneed for “priority efforts to be made in finding alternative new
substances with low greenhouse effects.” Regarding liquid crystal
and semiconductor manufacturing, it states that “major emissions
reductions have been achieved in recent years, particularly withregard to gas manufacturing and semiconductors/liquid crystals,
and in the future, adequate care must be taken to avoid anincrease in the cost of further reductions.”
The technology being developed by Casio complies with theabovementioned recommendations. Casio hopes that thistechnology will be adopted in the near future by the entire
semiconductor and liquid crystal manufacturing industry.
These groundbreaking developments may be difficult forordinary consumers to recognize, but Casio is driven by its
commitment to “Creativity and Contribution” to provide this helpful
technology to the world.

Employees of Casio Electronics (Shenzhen) participate in a greenery promotion campaign
in the city of Shenzhen (April 2009).

38 Casio Corporate Report 2009

Casio Corporate Report 200939

Environmental Management

Environmental Awareness in Product Development
Casio is introducing eco-designs and creating eco-products, and proposing new ways for people to achievesustainable lifestyles. In 2009, new targets have been set to guide Casio’s activities with the launch of the
Casio Green Star Products project.

* Casio is currently trying out a transportation method that combines rail and ferry for shipping from Zhongshan,
China, to Japan. Full-scale implementation of this method is expected to reduce CO2 emissions by at least 95%.

Effects of packaging improvements● Habarovsk
Previous route: Zhongshan ➞ Hong Kong ➞● Vladivostok
Kansai International Airport ➞ Suzuka
New route: Zhongshan ➞ Shanghai ➞ Hakata ➞ Suzuka● Beijing* The pie charts show the ratio of product volume shipped. Casio learned thatexcept for the products themselves, user manuals made up the largest
percentage of the shipped product packages.

(1) Electronic dictionary● Pyongyang● SeoulBefore Improvements● Tokyo● Pusan● Xi’anAfter Improvements

EffectManual● Taipei*For details, see p. 37

Toner featuring carbon offset: how it works
Green product sales targets
100

(%)

80
60

59.0

70.5

68.0

Japanesegovernment

84.0

77.0

Customer

0

2003

2004

2005

2006

2007

2008

2009 (FY)
Target year

● Manual

3,000

254

2,500

866

11.4

373

597

569

554

1,144

1,614

1,080

8.0

500
0

17.5

Plant/port ➞ Logistics Center
Distribution C ➞ Customer

2,000
1,000

ManualTons-CO2/¥ billion

3,500

1,500

7.5

Logistics C ➞ Distribution C
Logistics C ➞ Customer
15.0
Per unit of sales

635

554

530

550

1,085

1,139

547
518

10.0

476

967

784

343

312

294

7.1
210

7.0
174

6.7
152

7.2
136

2001

2004

2005

2006

2007

2008

2009 (FY)

15.0

Tons-CO2

Tons-CO2/¥ billion

150,000

200

Sea

Air

125,000

75,00050,0000

Per unit of sales
1,683

1,303

1,611

21,53025,327171.3
72,92626,193
177.1

185.0

1,447
20,742

1,681

180.7

22,157

187.5
175.0

166.1
69,43682,07490,369Before Improvements

71,992

162.5

After
Improvements

Effect● Manual

29.7%

17.5

CO2 emissions and emissions per unit of sales for logistics outside JapanRail(3) Handheld terminal

12.5
539

CO2 reduction results outside Japan
In fiscal 2009, Casio achieved a 14.9% reduction in CO2 emissions
from the previous year, and an 8.0% reduction compared with thebase year (fiscal 2005) per unit of sales. Henceforward, to achieve
the targets for fiscal 2010, Casio will reduce the size of packaging,
reduce air freight, and reduce transport distances.

100,000

Change from A5 to B6 size
Volume: 45% reduction● Box volume
57% reduction● Product packaging mass
45% reduction

52.1%

CO2 emissions and emissions per unit of sales for logistics in Japan
Tons-CO2

After Improvements

EffectManualManualChange from A5 to B6 size
Volume: 25% reduction● Box volume
27% reduction● Product packaging mass
15% reduction

Tons/¥ billion
30.0

Tons
14,00013,00012,00011,00027.6

Gross usage of
packaging materials

27.8
24.3

23.2

Per unit of sales

24.8

21.4

2006

40 Casio Corporate Report 2009

2007

2008

2009 (FY)150.0

Curbs global warming

2,219

1,858

1,600
1,200
800

10,000

15.0

9,000

400
0

10.0

8,000

-400
-800

7,000

15.0

6,000
5,000
2001 2002 2003 2004 2005 2006 2007

2005

Promotes global warming

2,400
2,000

20.0

21.1

Effect on global warming(CO2 equivalent per SPEEDIA N3600 page printer)(kg-CO2)

25.0

21.0
22.0

LCA*1 of page printers and toner cartridges
featuring carbon offset
A life-cycle assessment (LCA) identifies the CO2 emissions
produced during each stage of a product’s life cycle, and yields
results that can be used in the development of new products. The
results of an LCA performed on the N3600 page printer showedthat the CO2 equivalent output during the use stage was 1,858 kgCO2, or 84% of the total output for that product. This means that
reducing the power consumed when the product is in use will leadto a reduction in CO2 equivalent output for the product as a whole.
Casio has begun efforts to reduce 47% of the CO2 equivalent
output for the product’s entire life cycle by using toner cartridges
that offset the CO2 emissions produced by the electricity
consumed during printing.
*1. LCA: A method of quantifying the environmental impact (such as CO2 emissions) that a single product hason people or the planet over the course of its life, from the materials used, to product assembly, to final
disposal of the item.

Gross usage of packaging materials and usage per unit of sales

0.00
2008 2009 (FY)

Carboncredits

Carbon credit
purchase

Casio

CarbonoffsetProject forgreenhouse gas
reduction

OffsetEnvironmentally Friendly Page Printers(2) Cellular phone
Before Improvements

Product
purchase

Electricity
consumed
during printing● Hong Kong

CO2 reduction results in Japan
In fiscal 2009, Casio achieved an 11.4% reduction in CO2emissions from the previous year, and a 36.7% reduction
compared with the base year (fiscal 2001) per unit of sales.

No-cost transfer(invalidation)

44.4
35.3

20

Change from B6 to A6 size
Volume: 47% reduction● Box volume
14% reduction● Product packaging mass
28% reduction

40.4%

In fiscal 2002, Casio launched its Casio Green Products project topromote the creation of eco-products. Products that meet rigorous
standards, based on the results of a product environmental
assessment, are certified as Casio Green Products. The company
worked toward the goal of achieving a Casio Green Products sales
ratio of 80% by fiscal 2009, and achieved it early.
After internal discussions, Casio decided to identify the mostenvironmentally friendly of the Casio Green Products as Casio
Green Star Products.* Casio set a new goal in fiscal 2010 of raising
the sales ratio of Casio Green Star Products to 30% by fiscal 2013.

40● Manual● Nanjing● Hangzhou● Shanghai

Wuhan ●To reduce the amount of product packaging needed, Casio
conducted a survey of the shape of the packaging of all of its
products, as well as the size and mass of items enclosed with those
products. The results showed that the size of the user manuals wasa major determinant of the size of the packaging being used.
Casio adjusted the size of the manuals for three products, its
electronic dictionaries, cellular phones, and handheld terminals,
allowing those products to be packaged more effectively andcreating a structure that allows for more efficient shipping. In the
future, Casio will continue to make efforts to improve its packaging
by monitoring the effects of its total use of packaging materials andwatching the trends by unit of sales.

Reducing greenhouse gases with toner featuring carbon offset
Since page printers indirectly contribute to CO2 emissions throughthe electricity they use during printing, Casio calculated theseemissions based on the amount of toner consumed. Using thisinformation, the company came out with toner featuring a carbon
offset. When a customer purchases this toner, Casio obtains
carbon credits through a provider in order to offset the electricity
used for printing. In this way, Casio is helping customers to simply
and conveniently contribute to the fight against global warming
whenever they purchase toner.
Casio currently offers carbon offset toner for three page printermodels, the N3600, N6100, and B9000, but it plans to make thistoner available for new models, as well.

Environmental Management

In order to reduce CO2 emissions in the logistics process, Casio is
promoting the following three action plans.
•Shortening transport distances
Promoting direct shipping to customers from logistics centers inand outside Japan•Promoting a modal shift*
Actively using modes of transport with low environmental impact
such as rail for transport between sites•Improving loading efficiency and reducing transport volume
Improving the packaging design of electronic dictionaries andmusical instruments, and reducing the volume of packaging● Chengdu

Casio Green Product Performance andAdapting to New Standards

Reducing Packaging Materials by Changing
the Size of User Manuals

Logistics Initiatives-1,200
-1600

272
16
g
ng
s rin
t uri
ial tuuc ct
er fac
od fa
at
M anu
Pr anu
m
m

62

11
n
tio

st

Di

u
rib

al
os -57
isp

*2

e
Us

-366
Re

,d
ng
cli
cy

rb
Ca

on

of

fs

l

ta
To

*3

et

-840

Models that use toner featuring carbon offset

N3600

N6100

B9000

Fiscal 2009 carbon offset performance report
The following carbon offset has been achieved through the use of tonercartridges featuring carbon offset:
Product/Period:
N3000 Series Return Toner Cartridges(Sold July 1, 2008 to March 31, 2009)
N6000 Series Return Toner Cartridges(Sold October 1, 2008 to March 31, 2009)
B9000 Series Return Toner Cartridges(Sold October 1, 2008 to March 31, 2009)
Offset amount:
906 tons-CO2 (CO2 equivalent tons)
Project name:
HFC Decomposition Project in Ulsan, South Korea(UN CDM Executive Board Registration No: 0003)
4.2 MW Wind Power Project in Maharashtra, India(UN CDM Executive Board Registration No: 0800)
Credit type:
Kyoto credit (Certified Emission Reductions; CERs)
Credit identification no: KR-000-000-001-188-962 – 189-087
IN-000-000-054-016-079 – 016-858
Invalidation method:
Transfer to retirement account of the Japanese
government
Provider name:gConscious, Inc.

-1,263*2. Assumes a period of use of five years, and 6,500 pages printed per toner cartridge.
*3. CO2 offset when toner cartridge featuring carbon offset is used for five years.

* The figures for gross usage of packaging materials are paper-based, cardboard,plastic materials and polystyrene foam.

Casio Corporate Report 200941

Environmental Management

Environmental Action Plan
Casio established the themes of its Fiscal 2009 Environmental Action Plan from a new perspective. In
addition to focusing on total carbon reduction and the creation of Green Star Products, the plan specifies
development of environmental management systems (EMS) to include new sales sites.

The Biodiversity Crisis* and the Role ofPrivate Enterprise* This refers to all of the species, genetic, and ecosystem diversity that exists in the planet’s living beings.
Maintaining biodiversity ensures that the natural environment remains abundant and healthy. Corporations
today are being asked to work to preserve biodiversity, promote the sustainable use of resources, andensure that everyone can continue enjoying nature’s bounty.

Casio’s efforts to promote biodiversity
Casio’s creation of products that are more compact, lightweight,
slim, and energy-efficient restricts excessive resource
development, thereby constraining the expansion and speed of theecosystem degradation occurring all over the planet. Casio has
also been promoting the sustainable procurement of raw materials.
Today, Casio is making the following efforts with regard
to biodiversity:● Participating in the development of alternatives to the rare
metals and indium currently used in liquid crystal devices.
● Supporting the preservation of species, in Chuo City,
Yamanashi Prefecture, Japan, Casio preserves local rare
Otoguro cherry trees and is adding greenery to the local Casio
plant. In Hamura City, Tokyo, Casio is participating in an“adopted” Ohga lotus activity.
● Working with NPOs and NGOs, Casio uses part of theproceeds from its collaborative product models forenvironmental education, and to support species preservationand ecosystem preservation.
● Developing products whose design and specifications are
based on biodiversity considerations.
● Promoting the use of less paper through the digitization ofcontent (in the form of electronic dictionaries, for example),thereby helping to control deforestation and preserve
forest biodiversity.
Casio has not yet developed a group-wide measure, policy or
action plan for its biodiversity efforts, so the effects and risks thatits business activities pose with respect to biodiversity have yet to
be definitively assessed. Going forward, Casio will be addressing
this issue, together with its efforts to fight global warming, as animportant component of its environmental management strategy.

Casio products are exported all over the world, and most countries
now have chemical substance laws and regulations governing theparts and materials that are included in manufactured products.
This is the case not only in the EU and some states of the US,
places that have taken the lead in complying with such laws, butalso across Asia and South America.
To ensure the legal compliance of its products, Casio asks its
suppliers to adhere to restrictions regarding the content of specified
chemical substances in the parts and materials contained in the
products they supply, and to disclose detailed information regarding
their content. In addition to setting product standards that address
worldwide legal requirements, Casio has developed its own
procurement standards for parts and materials. These are primarily
based on the chemical substance regulations in the regions thatimport Casio’s products. They have been included in procurement
standards and suppliers have been asked to uphold them.
At the end of fiscal 2009, the sixth revised version of these standards was issued, with updated stipulations regarding the inclusion ofprohibited chemical substances. Also added was a new request to
suppliers to cooperate in adhering to the REACH regulations established by the EU. Moving forward, Casio will ask its suppliers toprovide information regarding their management of chemical substances, which has been difficult to ascertain, along with information
on a wide array of chemical substances. The company is currently
developing streamlined methods of handling all of this information.
Products and materials that meet Casio’s standards will comply
with the chemical substance regulations in all regions, ensuringthat Casio products will be able to be sold anywhere in the world.
This will vastly improve the efficiency of Casio’s productdevelopment processes. It is also likely to increase the international
competitiveness of Casio’s suppliers, since meeting Casio’s
standards will ensure that they are meeting the criteria contained inlaws and regulations that are in force globally.
Casio’s green procurement efforts are expected to reap
benefits for both Casio and its suppliers alike.

Green Purchasing
Casio is committed to green purchasing, or the proactive effort topurchase environmentally friendly indirect materials such as officesupplies and office equipment (excluding software). Casio had beenworking to achieve the goal of a 70% green purchasing rate in fiscal
2010 at sites that have adopted the CATS e-P System, but itreached that goal in 2009, one year ahead of schedule. The
vigorous promotion of green purchasing enabled 13 groupcompanies to introduce the system in fiscal 2008, and one more infiscal 2009, expanding the number to a total of 16 companies.
Trends in the green purchasing rate (based on the number of purchases)
(%)
80
70
60
50
40
30
20
10
0

Kofu Casio works with the local community to help restore Otoguro cherry trees.

42 Casio Corporate Report 2009

58.7
36.7

64.9

66.4

72.7

41.2

As a result of such external factors as the global financial crisis andcredit crunch, Casio’s sales and production totals have fallen andits per-unit figures have tumbled. Internal factors include thetransfer of Casio’s electronic component plant to a third party,
yielding a year-on-year 34% reduction in input energy, 36%
reduction in input water resources, and 27,000-ton reduction in
CO2 emissions, but these improvements are likely to be only
temporary. However, in spite of the decline in capacity utilization,
production sites have been engaging in efforts that are likely to
produce future results, such as investing in more energy-efficientheating systems. Still, the CO2 emissions of Casio’s office sites
have increased year-on-year in absolute volume, indicating that
improvements need to be made.
In the area of chemical substance management, Casio hasmade steady progress, for instance, by revising its Green
Procurement Guidelines, and building a new chemical substances
database for procurement purposes. Casio has also hit its Green
Product sales targets and moved on to set new, higher goals.

Theme

2005

Target1

Development targets foreco-products

2007

2008

2009 (FY)

Progress
assessment(1) Increase green product sales to 80% of total sales by FY2009

84%

★★★★

Reduced by 42.0%
Reduced by 16.0%
Increased by 24.3%
Increased by 27.3%

★★★
★★★
●
●

■ Plant and business-site targets

1

Energy conservation targets(electrical power, fuel, etc.)(1) Japan production sites: Reduce CO2 emissions per unit*2 by 35%, averaged over 5 years from FY2009 to2013 (compared to FY 1991)(2) Japan office sites: Reduce CO2 emissions per unit by 9%, averaged over 5 years from FY2009 to 2013
(compared to FY 1991)(3) Production sites outside Japan: Reduce CO2 emissions per unit*3 by 30% by FY2013 (compared to FY 2005)(4) Office sites outside Japan: Reduce CO2 emissions per unit by 3% by FY2013 (compared to FY 2005)

2

Reduction target for greenhousegases other than CO2(1) Reduce total emissions of greenhouse gases other than CO2 (CO2 equivalent) to below 2000 level by 2010

Increased by 147.6%★

(1) Japan production sites: Reduce water usage per unit*2 by 10% by FY2009 (compared to FY2001)(2) Production sites outside Japan: Reduce water usage per unit*3 by 15% by FY2013 (compared to FY2005)(3) Japan sites: Reduce paper usage per unit*2 by 30% by FY2009 (compared to FY2004)

Reduced by 20.5%
Reduced by 20.1%
Increased by 37.5%

★★★★
★★★
●

3

Resource conservation targets(water and paper)

4

Waste reduction targets(1) Japan sites: Reduce generation of waste per unit*2 by 30% by FY2013 (compared to FY2001)(2) Production sites outside Japan: Reduce generation of waste per unit*3 by 30% by FY2013 (compared to FY2005)

Reduced by 41.8%
Increased by 3.6%

★★★★
●

5

Reduction of volatile organic
compounds (VOCs)(1) Japan production sites: Reduce emission of VOCs by 30% by FY2011 (compared to FY2001)

Reduced by 16.0%★★

6

Hazardous substancephase-out(1) Detoxify PCB-containing equipment now in storage as Japan Environmental Safety Corporation starts
program in each region* Kofu Casio Co., Ltd: By FY2009

Finished delivering this equipment to JESCO.
Continuing to store equipment until it can be
accepted for treatment.

7

Output reduction of PRTR
substances(1) Japan production sites: Reduce output per unit*2 by 40% by FY2013 (compared to FY2004)

Reduced by 61.3%★★★

8

Green procurement targets(1) Sites in and outside Japan: Achieve 100% response rate (percent of parts covered by supplier surveys) for
green parts by FY2009

100%

★★★

9

Green purchasing targets(1) Japan sites: Raise the green purchasing ratio to 70% of total purchases (based on the number of purchases)

72.7%

★★★

10

Targets for logistics-related
global warming countermeasures(1) Reduce CO2 emissions from logistics within Japan per unit*1 by 40% by FY2010 (compared to FY2001)(2) Reduce CO2 emissions from logistics outside Japan per unit*1 by 5% by FY2010 (compared to FY2005)

Reduced by 36.7%
Increased by 8.0%★★
●

About the basic units
Progress assessment

2006

Performance by end of FY2009(compared to base year)■ Product targets

Reference
2004

Casio’s Environmental Action Plans include a public commitment
to the goal of building a low-carbon society, and call for thecompany to cooperate with other stakeholders in this process,using their input to help reduce the company’s environmental
impact.
● Creation of products that save energy and resources
From fiscal 2010, Casio began to certify those Casio Green
Products that have the best environmental attributes as Casio
Green Star Products, and will promote sales of these products.
● CO2 reduction
Energy-efficiency investments in heating systems at production
sites in Japan are expected to yield results.
• Office sites are switching to energy-saving lighting to help
achieve the company’s targets for reduction of total volume of
CO2 emissions.
• The environmental impact of Casio Europe’s operations is
expected to be reduced thanks to the new energy-savingbuilding and the concentration of sales, service, and distributionfunctions in a central location.
● Environmental management system• In addition to ISO14001, Casio is expanding its environmental
management system to its sales and service divisions, and iscreating a corporate culture that emphasizes employee
participation in producing results.

Fiscal 2009 Casio Environmental Action Plan Performance Report

25.8

2003

Anticipated Environmental Efforts
Environmental Management

As a result of ongoing global warming and human production
activities that have paid too little attention to the workings ofnature, many wildlife habitats are deteriorating, ecosystems arebeing destroyed, and the number of endangered species isincreasing.
Many of the rare metals used in electronic components are indanger of disappearing altogether, and the continued mining of
those metals is seriously damaging the environment.
Businesses that engage in activities that use the planet’s
resources, whether animal or mineral, must review their conduct,
preserve and protect biodiversity, and work hard to maintain asound natural environment.

Fiscal 2009 Environmental Action
Plan Performance

Green Procurement*1: Per unit of sales *2: Per unit of actual production *3: Per unit of production★★★★: Target was achieved and a new, higher target was established. ★★★: Target was achieved. ★★: Target not achieved, but steady improvement made over previous fiscal year.
★: Making progress toward achieving target and expect results next fiscal year and beyond. ●: Same as or worse than base value.

pp2–3. Fiscal 2010 Casio Environmental Action Plan
p4. Fiscal 2010 Casio Environmental Action Plan Performance Report (Details)
Casio Corporate Report 200943

Environmental Management

Material Balance

Environmental Performance

The material balance represents an environmental assessment of Casio’s energy-saving and resourcesaving manufacturing practices. Casio is always striving to minimize its energy and resource inputs aswell as its emissions and outputs.

The best way to reduce environmental impact is to make daily improvements. Clean water, fresh air, and thebeauty of greenery are all gifts we receive from the earth. Casio believes every day should involve some kindof effort to give something back to the earth. The care with which this is done is the measure of Casio’s
environmental performance.

Fiscal 2009 Performance

What is a Material Balance?

Casio’s fiscal 2009 material balance showed reduction in both
inputs and outputs, including a major decline in CO2 emissions of
29,890 tons.
This is primarily attributed to a reduction in inputs resulting fromdownward adjustments to production caused by the economic
slowdown, as well as the transfer of Casio’s electronic component
plants in Japan to a third party. As a result, the material balance
per unit worsened for Casio’s operations outside Japan, but
improved for its operations in Japan.
Going forward, Casio will continue to position greenhouse gas
reduction as a priority environmental issue.

Material balance in business activities (fiscal 2009)

Outputs

InputsEnergy48,599 kl (crude oil equivalent)Electricity

161.18 million kWh

Fuel7,666 kl (crude oil equivalent)Greenhouse gases

R&D/design

2.264 million m3

Water resources

CO2 emissions

98,883 tons-CO2

SF6 emissions

14,580 tons-CO2 equivalent

Air pollutants*1

SF6 (sulfur hexafluoride)

1.2 tonsNOx

16 tons

VOC

177 tons

SOx

4.5 tons

Paper usage

180 tons

PRTR substance177 tons

Procurement

Dust

0.3 tons

VOC emissions to atmosphere40 tons

Wastewater
Parts and materials*2

1.879 million m3
BOD

26,704 tons

Recycled material

256 tons

Manuals

5,532 tons
Recycled material

1,068 tons

Packaging material

12,856 tons

Recycled material

Manufacture

3,300 m3

143 tons

Releases

12 tons

Transfers

131 tons
6,571 tons

Generated waste, etc.

10,364 tons

Rainwater

34 tons

Releases and transfers of PRTR substances

Waste

5,174 tons

Valuables

1,397 tons

Landfill disposal

648 tons

Recycled waste*3

5,539 tons

154,000 m3

Recycled industrial water

In the first year of the period covered by Casio’s Environmental
Action Plan (five years), efforts made at its Japanese sites resulted
in a reduction accounting for 42% of its production site target (35%
reduction in CO2 emissions per unit of actual production comparedto fiscal 1991) and a reduction accounting for 16% of its officetarget (9% total reduction compared to fiscal 1991).
Casio was able to fulfill its first-year commitment to the goals
established by Japan’s four electrical and electronics industry
associations for meeting the Kyoto Protocol, which was ratified by
Japan. This was made possible in part by the accumulation ofenergy-saving measures already implemented. Also, although
there were concerns about a per-unit worsening due to downward
adjustments to production in fiscal 2009, this was prevented by
the transfer of Casio’s electronic component plants in Japan to athird party, a move that reduced CO2 emissions by about 20,000
tons-CO2.
On the other hand, the Environmental Action Plan target year foroutside Japan is fiscal 2013, and fiscal 2009 performance showed
a 24% per-unit increase against the production site target (30%reduction in CO2 emissions per unit of production compared tofiscal 2005) and a 27% increase against the target for office sites(3% total reduction compared to fiscal 2005).
At production sites outside Japan, total CO2 emissions werereduced by 4,529 tons-CO2 compared to the previous fiscal year.
This is attributed to a change made at production sites about
two years ago, whereby electronic component production was
shifted in-house, as well as to downward adjustments to
production resulting from the economic slowdown. In terms ofoffice sites, meanwhile, there has been a net increase of six
additional office sites that did not exist in the base year of fiscal
2005, including the addition of three new group sales companies
in fiscal 2009.

Casio made energy-saving investments in heating systems for
production sites in Japan, which were to be its leading energysaving efforts for fiscal 2009, and the system went online by theend of the fiscal year. The energy savings are to be achieved byadopting a heating system that replaces absorption chillers, which
use heavy fuel oil A, with turbo chillers that run on electricity.
Converted into CO2 emissions, this has the potential to result inan annual reduction of 5,000 tons-CO2, which will have asignificant impact going forward.
Even at Casio’s office sites, the shift to energy-efficient lighting
is gradually being made. However, since there are plans toincorporate many of Casio’s office sites in Japan (including sales
offices and others)—which are currently tenants in buildings
operated by other companies—into its Action Plan, the total rate of
reduction for office sites is expected to decline. This will makeadditional measures necessary.
Reporting now on office sites outside Japan, Casio has built a
new energy-efficient building for Casio Europe, a leading sales anddistribution center, and was doing business there by the end of fiscal
2009. Energy-saving improvements include the installation of a new
air conditioning system that heats water and rooms using geothermalheat in the winter, and cools rooms during the summer by circulatingwater through pipes embedded in the walls and floors of the building.
This system is capable of achieving a 30% to 45% reduction in CO2emissions over conventional systems, and is therefore expected toyield significant results in fiscal 2010 and beyond.
Important steps are also being taken at production sites outside
Japan. Casio (Thailand) Co., Ltd., is starting to use company
vehicles that have been converted from gasoline to compressed
natural gas (CNG).
Casio will continue to analyze current conditions and reexamine
future targets, and will take specific steps for achieving them.

CO2 emissions (production sites in Japan)

CO2 emissions (office sites in Japan)

Emissions per unit of actual production: tons-CO2/¥million

CO2 emissions: tons-CO2

100,000

Reused plastics

11 tons

Logistics*4

CO2 emissions

97,765 tons-CO2

Total products sold

130 million

Sales
TFT-LCD packaging
Electricity

Use

29.81 million kWh

17 tons

CO2 emissions

12,571 tons-CO2

Reducing CO2 Emissions: Future

75,0000.282

75,5890.212

79,1890.209

79,4720.209

79,3650.205

50,00025,0000

CO2 emissions
Emissions perunit of actual
production

53,6880.181

22,693

1991

2005

2006

2007

2008

2009 (FY)

CO2 emissions: tons-CO2

0.30

12,5000.25

10,000

0.20

7,500

0.15

5,000

0

0

System equipment from corporate customers
Household PCs

Recycled
1 ton
0.4 tons

Label printer tape cartridges

7 tonsDrums and toner cartridges

658 tons

Recovery/recycling

CO2 emissions (production sites outside Japan)

System equipment from corporate customers

0.9 tons

Household PCs

0.3 tons

Label printer tape cartridges

7 tonsDrums and toner cartridges

745 tons

40,00030,000Material balance for products*1. Ozone depleting substances have been fully phased out.
*2. Parts and materials include consumables, such as toner cartridges.
*3. Recycled waste includes thermally recycled material.
*4. Product distribution is consigned to transportation companies.

p6. Material Balance (Electronic Components Segment)

44 Casio Corporate Report 2009

33,56929,04016,41018,491

20,65410,0000References p5. Material Balance (Electronics Segment)

0.242

0.272

0.291

2005

2006

2007

2008

2005

10,129

2006

9,451

9,350

2007

2008

9,655
547 (+ 5 office sites)

2009 (FY)

CO2 emissions: tons-CO2

0.32

10,000

0.24

7,500

CO2 emissions

0.193

20,000Material balance for business sites

0.235

CO2 emissions
Emissions perunit of production

1991

10,051CO2 emissions (office sites outside Japan)

Emissions per unit of production: tons-CO2/¥million

CO2 emissions: tons-CO2

CO2 emissions

11,492*Trends in CO2 emissions from energy sources (electrical power, fuel, etc.) used at office sites in Japan.
For sites which had no data available for the fiscal 1990 base figures, the oldest available data was used instead.

*Trends in CO2 emissions from energy sources (electrical power, fuel, etc.) used at production sites in Japan.

RecoveredEnvironmental Management

A material balance provides an overall picture of a company’senvironmental impact. It shows the amount of energy andresources a company uses in its business activities (inputs intobusiness activities), the amount of environmentally harmful
substances (including waste) it emits, and the amount of output it
produces and sells (outputs from its business activities).

Reducing CO2 Emissions:Fiscal 2009 Results and Analysis

2009 (FY)

0.16

5,000

0.08

2,500

0

*Trends in CO2 emissions from energy sources (electrical power, fuel, etc.) used at production sites outside Japan.

0

5,099

2005

5,690

2006

5,907

6,489

2007

2008

6,500
69 (+ 3 office sites)

2009 (FY)*Trends in CO2 emissions from energy sources (electrical power, fuel, etc.) used at office sites outside Japan.
For sites which had no data available for the fiscal 2005 base figures, the oldest available data was used instead.

References p7. CO2 Emissions (Electronics and Electronic Components Segments)
Casio Corporate Report 200945

Environmental Management

Reducing Waste

Reducing VOCs

Reducing Usage of Paper Resources

The target years for meeting waste reduction goals were set to
fiscal 2009 in Japan and fiscal 2013 outside Japan. Fiscal 2009
results show that Casio achieved a 42% reduction in waste, ascompared with its target of reducing waste at all sites per unit ofactual production by 40% compared to fiscal 2001. This
represents a 2,174-ton reduction over the previous fiscal year.
This was achieved in part due to an approximately 1,900-ton
reduction resulting from the transfer of Casio’s electronic
component plant in Japan to a third party early in the period, as
well as by downward adjustments to production. The total volumeof landfill disposal at all sites in Japan (production sites and officesites) increased by about 11 tons because of the new applicationof environmental assessments at five Japanese sales sites that
acquired ISO14001 certification. Many of Casio’s sales sites are
tenants in buildings owned by other companies, and finding ways
to ensure improvement at those sites will be an important issue.
Casio plans to incorporate all of its sales sites in Japan into its
environmental assessment plans, and is studying various
measures for controlling increases in landfill disposal.
Meanwhile, Casio reported a 3.6% increase in waste at its sites
outside Japan, versus its target of reducing waste at production
sites outside Japan per unit of production by 30% from fiscal
2005. Still, this represents a reduction of 126 tons from theprevious fiscal year.
This shift is attributed to the downward adjustments in
production as well as the decline in production values caused byunit price decreases. Casio’s office sites outside Japan achieved a
266-ton reduction in total waste output from the previous year. In
coming months, Casio will examine additional measures that canbe taken to achieve its targets by the target year (fiscal 2013).

The target years for meeting water use reduction goals were set to
fiscal 2009 in Japan and fiscal 2013 outside Japan. Fiscal 2009
results show that Casio achieved a 20.5% reduction in water
usage at its production sites in Japan, exceeding its target of a
10% reduction in water usage per unit of actual production compared with fiscal 2001. This represents a reduction of 860,000 m3
from the previous fiscal year. As was the case with its waste
reduction achievements, this is attributed to the transfer of Casio’s
electronic component plant in Japan to a third party, which yieldeda water usage reduction of about 950,000 m3.
Casio Electronic Manufacturing Co., Ltd., began reusing rainwater in fiscal 2008, and the volume reused rose from 2,000 m3 to
3,300 m3 in fiscal 2009. The total water usage at office sites inJapan was about 130,000 m3, but at sites which rent office space,including sites outside Japan, water usage is often incorporated
into the rent package, making it difficult to assess total water
usage. At its production sites outside Japan, Casio reduced its
water usage by about 20%, outperforming its target of reducing
water usage per unit of production by 15% compared to fiscal
2005. This represents a reduction of 70,000 m3 from the previous
fiscal year. This is attributed in part to downward adjustments in
production, but also reflects the impact of gradual increases in theuse of recycled water made possible by wastewater purificationequipment, water-saving measures such as strengthening periodic
water leak inspections and tightening water volume valves, andmeasures to educate employees about water conservation.
Going forward, Casio will study measures to achieve further
reductions, starting with its sites in Japan, which accounted forabout 86% of its total water resource usage of 2.26 million m3.

Casio’s target for paper usage was to reduce the amount of paper
used at all sites in Japan by 30% per unit of actual production by
fiscal 2009, compared with fiscal 2004. Fiscal 2009 results inJapan revealed a 37.5% increase in paper usage, leaving thetarget unmet, but still representing a total decrease of about 4 tons
from the previous fiscal year. This is attributed to the addition of 16
office sites now being evaluated, even though the number of
production sites has remained unchanged since the base year of
fiscal 2004. To ensure the effective use of resources and prevent
global warming, the use of paper, which is made from trees, must
be reduced. Casio is therefore resetting its targets based on fiscal
2008 levels. Casio will also continue striving to reduce its paper
usage by promoting “Green IT” initiatives.

Generation of waste, volume of landfill disposal, and waste
per unit of actual production (all sites in Japan)

Usage of water resources and recycled industrial water, andinput per unit of actual production (Japan production sites)

Generation of waste

Volume of landfill disposal

Generation of waste, and volumeof landfill disposal: tons

Per unit of actual production: tons/¥million

10,000
8,000

0.024

6,414

0.019

0.018

0.016

6,614

6,000
6,760

4,000

0

5,788

6,695

6,312

0.017
1,679

0.025

4,138

0.020
0.014

0.015

1,397
2,741

0.010

4,392

0.005

1.089
101

103
2001

2004

2005

74

29

20

2006

2007

2008

2009 (FY)

Valuables

Wastes]General waste, etc: [31

Volume of landfill disposal

Generation of waste, and volume of landfill disposal: tons

0.020

2,000
1,750
1,500
1,250
1,000

0.01200.01050.0093

839

994

500
0

0.0110

164
2005

152
2006

168
2007

311

2008

8,000

0.00680.010

3402009 (FY)

0.00730.00740.0072

4,000

0.004

2,073

2,490
106

2001

2004

2,806

2,851

2,827

0.005

1,937
174

208

2005

2006

Water resources

209
2007

185

0

2009 (FY)Per unit of production: thousand m3/¥million

0.01001,250

0.00390274

0.0040318

0.0034
368
54

2005

2006

2007

0.00500.00310.0031

384

312
46

2008

Casio has set a target of reducing its SF6 emissions to less than2000 levels by 2010. Its 2008 results revealed an approximately
148% increase of 18,021 tons-CO2.* This was attributed to an increase in production volumes, and to the fact that, since the final
stages of efforts to investigate SF6 reduction measures took place
during fiscal 2009, the results reflected emissions before countermeasures were put into place. Casio is investigating measures toreduce SF6 so that it can make final determinations regarding quality, cost, and schedule, based on production, including whether touse substitute substances or to introduce air scrubbing equipment,
and is promoting efforts to achieve the established targets.
*The targets here indicate calendar years, while other performance figures are based on fiscal years.

VOC usage and emissions to atmosphere (Japan production sites)
VOC usage and emissions to the atmosphere: tons

0.0008

400
300

250

162

0.000250.00028

112

107

2004

2005

2006

2007

2008

PRTR substance usage and releases: tons

250

150

0.00100.0011103

2009 (FY)100
00.000850
000.0008177

0.00050.0004

39

2004

30
2005

0.0010Per unit of actual production

182

165

158

Releases

208

37

2006

177

16

12

2007

2008

2009 (FY)

47

52

52

52

43

39

2001

2005

2006

2007

2008

2009 (FY)SF6 inputs: tons

5.0
4.5

3.0
2.5

0.00042.0
1.5

0.00021.0
0.5

0.00000SF6 emissions to the atmosphere (CO2-equivalent): tons-CO2

25,000SF6 inputs
SF6 emissions to the atmosphere

4.0
3.5

0.00060.000418

0

SF6 gas usage and emissions to atmosphere (Japan production sites)
0.0012

Usage

256

244

211

0.0003Per unit of actual production: tons/¥million

300

VOC emissions to the atmosphere

325

200

0.000350.00030

92

0

342

317

VOC usage

0.00050.00043

100

48
2009 (FY)

Reducing SF6

500

278

200

500

Casio’s atmospheric emissions of nitrogen oxides (NOx), sulfur
oxides (SOx) and dust in the peak year of fiscal 2006 were 138
tons, 37 tons, and 2 tons, respectively. Emissions in fiscal 2009were 16 tons, 4.5 tons, and 0.3 tons, respectively. These dramatic
reductions are attributed to the shift from heavy fuel oil A to natural
gas and electricity, and Casio will continue to strive to reduce its
use of heavy fuel oil A.

0.0010PRTR substance usage, releases, and releases per unit of actual
production (Japan production sites)

Per unit of production

1,500

Per unit of actual production

0.00078

0.002

106

2008

Recycled industrial water

Water resources, and recycled industrial water: thousand m3

250
0

Paper usage

2,801

Usage of water resources and recycled industrial water, andusage per unit of production (production sites outside Japan)

750

Per unit of actual production: tons/¥million

500

Reducing NOx, SOx, and Dust

0.008

0.00650.006

0Paper usage: tons

0.010

0.0075

6,000

2,000

The reduction target for chemical substances regulated by Japan’s
Act on Confirmation, etc. of Release Amounts of Specific Chemical
Substances in the Environment and Promotion of Improvements to
the Management Thereof (PRTR Act) is to achieve a 40%
reduction per unit of actual production compared to fiscal 2004
levels, by fiscal 2013. Casio had achieved a 61% reduction by
fiscal 2009, reflecting a total reduction of four tons from theprevious fiscal year. This is attributed to the replacement of
2-ethoxyethyl acetate. The transfer of Casio’s electronic
component plant in Japan was completed in fiscal 2009, but since
the replacement of PRTR substances in the plant had already been
completed in fiscal 2007, this did not contribute to theyear-on-year total volume reduction. The replacement of
2-ethoxyethyl acetate with another substance was completed infiscal 2009. Casio will continue working toward current targets until
the new products from its materials suppliers (using substitutematerials) yield positive results.
Usage of paper and usage per unit of actual production (all sites in Japan)

Per unit of actual production

1,000

0.0124
1,238

804

750
250

0.015

1,364

Recycled industrial water

Per unit of actual production: thousand m3/¥million

0.0077Per unit of production

Per unit of production: tons/¥million

Water resources

10,0000Generation of waste, volume of landfill disposal, and waste per unit ofproduction (production sites outside Japan)
Generation of waste

Water resources, and recycledindustrial water: thousand m3

0.016
1,920

4,735

2,000

Per unit of actual production

Reducing PRTR Substances

Casio set the target year for reducing its atmospheric emissions ofvolatile organic compounds (VOCs) to fiscal 2011. Its fiscal 2009
results show that it has achieved a 16% reduction, making good
progress on the target of reducing total emissions by 30%
compared to fiscal 2001 for all production sites in Japan. This
represents a reduction of 4 tons from the previous fiscal year. This
year, Casio plans to decide on replacing these with substitutematerials or introducing air scrubbing equipment.

Environmental Management

Reducing Usage of Water Resources

SF6 emissions to the atmosphere(CO2-equivalent)

7,278
0.6

0.3

2000

15,24815,595

1.3

1.3

20,446
18,714

19,682

18,021

20,00015,000

1.7

1.6

1.6

0.6

0.7

0.8

0.9

2003

2004

2005

2006

10,000

1.5
0.8

2007

0.8

2008 (Year)

5,000
0

*Years shown in this graph are calendar years, to match industry action targets.

References p8. Water Reduction (Electronics and Electronic Components Segments)

p9. Water Usage Reduction (Electronics and Electronic Components Segments)

46 Casio Corporate Report 2009

References p10. Reduction of PRTR Substances (Details)

p11. Reduction of VOCs / Reduction of NOx, SOx, and Dust
Casio Corporate Report 200947

Environmental Management

Environmental Accounting

Overview of Fiscal 2009 Performance

Economic benefit*1

The Measure of Environmental Accounting

Amount (¥ million)

Type of benefit

Unlike ordinary financial accounting, when it comes toenvironmental accounting and the costs (investments,
expenses) and effects it assesses, the general idea that income
should always be high and expenses always low may not apply.
The costs necessary for ensuring environmental conservationmust be made, but a company also needs to ensure efficiency
and profitability if it is going to be able to engage inenvironmental conservation activities on an ongoing basis.
Since this report expresses the balance of these costs and theireconomic benefits, it shows the environmental profitability rate
for the whole group (economic benefits / environmental
expenses). The use of environmental accounting, which
contributes to the expansion of environmental conservation
effect and economic benefit, andefficient environmental conservation
activities, will be an increasingly key
issue in coming years.

Actual benefit (benefit that contributes to profits as a result of the promotion of environmental conservation measures)

1,593

Profits

1,181

Business revenue from recycling of used products, etc.

Cost savings

Estimated benefit*2

Cost reduction through energy saving activities

103

Reduction of waste treatment costs through resource saving and recycling

309

Reduction in CO2 emissions to energy inputs
Conservation of power consumption during product use by customers

71
1,664

Totals

*1. Economic benefits are comprised of the actual benefit, which are the effects that contribute to profits resulting from environmental conservation measures, and estimated benefit, which state the reduction in the environmental
impact in a monetary sum.
*2. Estimated benefit is calculated by converting reductions in CO2 emissions and power consumption during product use by customers into monetary figures. The effects of improved corporate image and avoiding risks are notincluded. The following statistical sources are used to perform these calculations:
CO2 unit prices are the average values for fiscal 2008 (¥2,531.6/ton) based on the Nikkei-JBIC Carbon Quotation Index. Electrical power unit prices are based on the fiscal 2007 results published by the Agency for Natural
Resources and Energy of the Ministry of Economy, Trade and Industry (¥15.90/kWh).

Product contributions to greenhouse gas reductions (April 2008-March 2009)
Product contributions to greenhouse gas reductions

Masataka Matsuno

Business area costs (costs arising in the main areas of business activity (manufacturing, processing, sales, distribution etc.)

Environmental
investment(¥ million)

Environmental
expenses*1(¥ million)

521

701

(1) Pollution prevention cost

Upgrading and maintenance of wastewater and exhaust gas
treatment facilities

48

240

(2) Global environmental
conservation cost

Introducing and maintenance of energy-saving equipment

472

291

(3) Resource circulation cost

Reducing and recycling of industrial and general waste

1

170

Upstream/downstream cost*2

Recovery and recycling of products including printer toner cartridges,
parts, containers, packaging etc.

0

1,094

Administration cost

Secretariat operating costs, eco trade shows

24

475

R&D cost

R&D for reduction of environmental impact

0446

Social activity cost

Donations to environmental conservation groups, greening andbeautification, support for community environmental activities

0

11

546

2,727

Totals1,273*The effect of substituting electronic dictionaries for paper dictionaries is calculated using the reduction in CO2 absorption caused by the cutting of forest resources (assuming a tree life span of 50 years).

Environmental conservation costs (April 2008 – March 2009)

Main initiatives

Amount (¥ million)

Paper consumption reduction made possible by electronic dictionaries

Accounting Department

Category by business activity

Environmental Management

Capital investments in environmental conservation, including efforts
to save energy through the introduction of energy-efficient heating
systems in the TFT-LCD manufacturing process, were valued at¥546 million in fiscal 2009. The expenses of Casio’s environmental
conservation activities, including the costs of recovery andrecycling of products and printer toner cartridges, maintenance ofenergy-saving and wastewater processing facilities, and ISO
certification and management activities, were ¥2,727 million.
That investment resulted in ¥1,181 million in business profits
achieved by recycling, and a cost savings of ¥412 million throughthe introduction of energy-saving initiatives and the reduction of
resources used in product packaging, yielding a real benefit of¥1,593 million. Also, in fiscal 2009, Casio began calculating CO2
emissions reduction, which had been treated as an environmental
conservation effect measured by the amount of material
consumed, based on estimated economic benefit, instead. This
year’s total economic benefits, including those from CO2 emissions
reduction, were ¥1,664 million. The total value of the economic
benefits and the cost efficiency of economic conservation activities
both improved over the previous fiscal year.

Economic benefits of environmental conservation (April 2008 – March 2009)

Employee Message

Trends in environmental investments, environmental expenses, and economic benefits (fiscal 2007 - fiscal 2009)
Amount (¥ billion)
4

3

Environmental profitability rate

Environmental investment
Environmental expenses
Economic benefit

60%

Environmental profitability rate(economic benefits / environmental expenses)

2

50%

1

40%

0

FY2007

FY200830%

FY2009*The above graph corrects past figures with regard to the estimated effects that were first calculated in fiscal 2009.

Environmental conservation effectUnit

FY2008FY2009Reduction effect*1

CO2 emissions

Tons-CO2

128,773

98,88329,890NOx emissions

Tons

18

16

2

SOx emissions

Tons

5.0

4.5

0.5

BOD emissions

Tons

34

34

0

Dust emissions

Tons

0.6

0.3

0.3

Waste emissions

Tons

9,143

6,571

2,572

Waste reutilization rate

Tons

7,123

5,539

–1,584*2

Environmental performance indicator*1. Depreciation costs are included in the expenses. *2. Costs arising before and after the processes of the main business activities.

Environmental
investment(¥ million)

Environmental
expenses(¥ million)

472

646

Cost related to ozone layer protection measures

028

Cost related to air quality measures

0

109

Cost related to noise and vibration measures

0

18

Cost related to environmental conservation measures for the aquatic, ground, and geologic environments

48

129

Cost related to waste and recycling measures

1

1,286

Cost related to measures for chemical substances

047

Cost related to natural environment conservation

24

20

Other cost (ISO certification, maintenance costs, secretariat operation costs, eco trade shows, etc.)

0

445

546

2,727

Category by type of environmental conservation measure
Cost related to global warming measures

Totals48 Casio Corporate Report 20093

Water resources

Thousand m

3,336

2,264

1,071

Packaging usage

Tons

13,05912,856

204

Specially designated chemical (PRTR) emissions

Tons

17

12

5

10,55012,571CO2 emissions of sold products

Tons-CO2*1. Figures are shown as positive when the effect has increased, and negative when it has decreased.
*2. The waste reutilization rate to waste emissions increased from 78% to 84%.
*3. CO2 emissions increased due to increased sales of high-performance machines, such as information equipment.

–2,021*3

Scope of data compilation for environmental accounting: Casio Computer Co., Ltd., andconsolidated subsidiaries in and outside Japan.
Reference guideline: Environmental Accounting Guidelines 2005, Ministry of theEnvironment, Japan

Casio Corporate Report 200949

Environmental Management

Environmental Management System

Casio’s Environmental Management
System (EMS)

Internal Environmental Audits
Since 2000, Casio has been taking advantage of educationalseminars organized by external educational institutions forISO14001 internal environmental auditors, primarily at the Hamura
R&D Center, and 57 individuals have already completed theseminars. These internal environmental auditors conduct
preliminary audits when ISO14001 audits are conducted.
In 2008, Casio employees began attending auditor training
seminars designed specifically to confer the certification ofEnvironmental Provisional Auditor, and Casio plans in the future
to organize trainings for internal environmental auditors within
the group.

Casio exhibited December 11–13, 2008 at the 10th Eco-Products
2008 (held at Tokyo Big Sight), for its 10th consecutive
appearance at the show. More than 750 companies andorganizations introduced their environmentally conscious products
and services to the show’s record-breaking 173,917 visitors.
Casio’s forest-themed booth was guided by the slogan “For a
Beautiful Planet and Our Children’s Future: The Harmony ofTechnology and Ecology.” Casio’s environmental efforts wereexplained during a narrated video presentation, and the boothhighlighted the specific environmentally friendly aspects of its
products. With hands-on experience in calculator assembly forelementary school children, a message board display, and a quiz
rally, the booth attracted big crowds.
Aside from the growing number of visitors, booth staffers havenoticed a growing sense of interest in and knowledge of environmental issues among the general public based on their interactions
with the booth and the questions they ask. Casio will continue to
strive to keep the public informed of its environmental efforts.

Environmental Communication
Casio recognizes the importance of communicating the company’s environmental efforts to all of its
stakeholders. Exhibits that allow people to see, touch, and experience what Casio is doing are a vitalcommunication tool.

The always popular calculator assembly
activity allows children to experience thefun of manufacturing, first-hand.

Environmental Management

To improve EMS coverage across the entire group, Casio
developed its own EMS in fiscal 2009 while also obtaining
ISO14001 certification at additional sites.
Since the practical implementation of ISO14001 measures isdifficult at small-scale sites, primarily non-production affiliatedcompanies in and outside Japan (such as sales offices), Casio’s
EMS specifies which items apply even to those workplaces.
The introduction of this system has been somewhat delayed
due to implementation of modified reports required by Japan’s
revised Act on the Rational Use of Energy, but starting in fiscal
2010, Casio will begin using the system at its Japanese sites. It will
also eventually implement the system outside Japan. Casio’s goal
is to achieve 100% group coverage for its environmental
management systems and its environmental impact information.
Even sites that have thus far not been included in theenvironmental impact data will soon be able to conduct simple
calculations of their environmental impact. This will make it easier toimplement efforts to reduce the environmental impact of the entire
Casio group and will help Casio develop a more centralized
approach to energy management.

Eco-Products 2008 Exhibit

Many visitors left messages on the ecodeclaration panel. Staffers were particularly
surprised by the high level of interest inenvironmental issues among youth.

Participation in CES
Casio has exhibited at the Consumer Electronics Show (Las
Vegas, US) every year since 2007 to highlight the company’senvironmental efforts. At CES 2009, which was held January 8–11,
2009, the booth featured the following:● Eco (green) products
Introduced Casio’s core competence in energy-saving andresource-saving technologies, applied in Casio’s digital
cameras, watches, and cellular phones.
● CO2 reductions in the distribution phase, achieved by
reducing packaging
Highlighted the packing boxes used for digital cameras andwatches.
● Environmental video
Showed the Kid’s ISO program launched by Casio America Inc.
● Casio’s Environmental Management Vision and Green
Products Concept

Eco-Gorilla and Ego-Gorilla
Cellular phones have become an essential communication tool intoday’s world. The Casio W62CA cellular phone displays EcoGorilla and Ego-Gorilla characters on the screen. The Eco-Gorillaengages in environmentally friendly activities, and the Ego-Gorilla
makes all the wrong environmental moves. As users enjoy these1 Eco-Gorilla
walks into aroom where
Ego-Gorilla
has fallen
asleep.

two characters’ exploits on their screens, it will help them tothink more ecologically about everyday life. Further, since thegorilla is an endangered species, this tool reminds users about
the environmental issue of species preservation.

Employee Message

In 2007, only two organizations at the CES had environmental
exhibits: Casio and the Consumer Electronics Association. In
2009, however, that number had ballooned to as many as 30.
Increasingly, product displays themselves also appeal to theadvantages of saving energy and resources, not using
specified toxic chemical substances, and using renewablesources of energy. Other exhibitors highlighted the disclosureof compliance information, including environmental
management policies, social contribution activities, andsystems for collecting and recycling products. Manycompanies are striving to improve their brand image byhighlighting their environmental strategies. Environmental
efforts are a means of conveying a company’s approach tobusiness, now recognizedworldwide. At Casio, we will keep
strengthening our efforts toshowcase our environmental
initiatives for potential customers.

2 Eco-Gorilla
turns off thelights.

Eco-Gorilla collects and sorts trash. He takes paper, bottles, and cans thathave been thrown into the wrong recycling containers, and places them in
the appropriate containers.

1 Ego-Gorilla
gradually
lowers thetemperature
setting on thethermostat.

2 Eco-Gorilla
resets thethermostat to
28 °C.

1 Ego-Gorillastands in front an
open refrigerator
drinking a can ofjuice, and thenthrows the canonto the floor.

2 Eco-Gorillacloses therefrigerator
door and picks
up thediscarded canfor recycling.

Hidenori Otsuka
The booth described Casio’s efforts to save energy and resources, promote longer
product lifetimes, and reduce CO2 emissions not only of products but also of packaging
and distribution.

50 Casio Corporate Report 2009

Environment Center

Casio Corporate Report 200951

Employee Satisfaction

Teaming with Employees
Casio provides support to employees so that they can continually improve their skills and fulfill the desire
to take on new challenges. As employees experience personal and professional growth, the company
grows as well.

Basic Personnel Policies

Respect for Human Rights

Number of employees by region
Total number of Casio
Group employees
12,358

North America 263 2%
Europe 651 5%

Asia 4,953 40%

Number of
employees
by region

Japan 6,491 53%(as of Mar. 31 2009)

The Casio Group Code of Conduct states that “we will respect all
fundamental human rights, and will not engage in any form of
discrimination,” and “we will not use or permit any form of child orforced labor.” The Code of Conduct has been disseminated and iswell understood throughout the group.
In April 2007, Casio issued Guidelines to Prevent Sexual
Harassment, and established a hotline, and continues to strive toresolve problems and prevent harassment.

Creating Supportive Workplaces

Building Workplaces for a Diverse Workforce
Initiatives to enhance the role of female employees
By promoting environments and systems that enable employees tofurther demonstrate their abilities, Casio is developing a greaternumber of professional employees, with the aim of raisingproductivity for the entire company. As part of these efforts, Casio
has created a Working Group for Female Employee Advancement,
and is actively encouraging its activities.
In fiscal 2009, the company implemented a management elearning program for the advancement of female employees, withthe aim of creating a change in the awareness of managers, whilestressing the importance of eliminating out-dated thinking.
At the same time, Casio held a female employee advancement
seminar for women in its workforce. The seminar included a lectureby the president of the company, activity reports from working
group members, a lecture by an outside instructor, and a chancefor participants to exchange opinions and information. The event
served to deepen the understanding of female employees
concerning the significance and importance of their own activities
in the company, and provided an opportunity to promote changes
in awareness and behavior.
Casio will continue to pursue effective development of humanresources in order to promote more opportunities for female
employees.

Overseas Employee Messages
My job involves planning for the personnel and general affairs
system, managing general administration work, anddeveloping staff. I am always thinking about ways to hire theright employees and increase their motivation, while improving
labor relations and linking the growth of the company andemployees. Based on these ideas, I must constantly come up
with new proposals to improve the current situation, and I findthis challenge very worthwhile and motivating.
I will continue to improve my specialized knowledge andskills, provide support to the sales department, anddemonstrate the value of the administrative
department. By working together with otherdepartments, I am working for the further
development of Casio Shanghai.

Zhu LiDeputy Manager, Personnel andGeneral Affairs Department,
Casio (Shanghai) Co., Ltd.

Since July 2008, I have been the deputy manager of theGeneral Affairs Department. Every day I strive to understandthe Japanese way of thinking, and work to create a betterworking environment for employees.
About 70% of our employees are female, and many ofthem return to work after taking maternity leave. The greatthing about our company is that employees can advance intheir careers by working hard, regardless of their gender.
My future goal is to improve the generalaffairs function, and to come up withmanagement methods that enable improved
efficiency.

Huang Yanhao
Activities of the Female Employees Working Group

52 Casio Corporate Report 2009

Initiatives for hiring persons with disabilities and seniors
Casio is building work environments that enable employees to fully
display their abilities and aptitudes, irrespective of any disabilities
they may have. The company actively hires individuals with thedetermination and creativity to take on challenges. As of April 1,
2009, the ratio of the workforce at Casio Computer Co., Ltd., withdisabilities was 1.83%. This is higher than the average rate of
1.59% at private companies in Japan, and meets the legally
recommended rate of 1.8%.
Casio has introduced a Casio Senior Staff Program and a
Senior Employee Program at all group companies in Japan. The
purpose of these programs is to provide retirement-age employeeswith employment opportunities, and to effectively utilize the skills
and know-how that these individuals have accumulated during
their careers.

Initiatives to help employees balance work and family life
Casio is working to build a supportive work environment that
permits all employees to fulfill their job responsibilities anddemonstrate their full potential on the job. Casio aims to be a place
where people can achieve their desires for their own lifestyles andlife stages. As part of this effort, Casio has set up a Special
Committee on Measures to Aid the Nurturing of the Next
Generation of Children. Through the exchange of information
between the company and union, and while also considering theopinions of employees, the committee is working to build an
employee support system that adjusts work schedules for family
responsibilities such as child and nursing care. Casio’s programsfor child care support surpass legal requirements in Japan. Childcare leave is available until a child reaches age two, and theshortened working hours program can be utilized until a childcompletes third grade. During the three-year period fromfiscal 2007 through 2009, over 90% of the eligible women at
Casio Computer Co., Ltd., took childcare leave in connection
with childbirth.
Casio Computer Co., Ltd., is working to reduce annual work
hours, and is carrying out a “Daily Improvement ‘Zero Overtime
Movement’” with an eye to changing work styles and improving
productivity.

Combining Casio pension plans
Until now, Casio has had a Casio Corporate Pension Fund and a
Casio Group Corporate Pension Fund. However, personnel
transfers requiring employees to switch from one fund to the othermade it impossible to maintain the pension benefits accumulatedby the employees concerned. To address the problem, aspecialized committee was set up with members from labor andmanagement. The committee fully discussed all related issues, andmade preparations for integration of the two pension funds. As aresult, on October 1, 2008, the Ministry of Health, Labour andWelfare approved the fund integration, enabling the maintenanceof pension benefits, and facilitating the active transfer of personnel
within the group.

Employee Satisfaction

At Casio, the human resources mission is organizedaround two themes: contributing to the development of thecompany through the growth of all employees based on
their desire to always take on challenges and make
improvements, as well as achieving both corporate
development and employee growth under optimal
conditions.

Actively appointing local personnel at subsidiaries
outside Japan
Along with the globalization of its operations, Casio is pursuing
local hiring at its sites outside Japan. This is being done not just in
manufacturing, but also in various other fields and job types.

Communication between labor and management
Through regular communication between management and thelabor union, Casio hopes to raise the awareness of employees
about their participation in the management of the company. Casio
values close communication between labor and management.
At the core of this labor-management communication is theGroup Workers’ Labor-Management Conference, which is held
twice a year. At these conferences, opinions from management
and labor, together representing the entire group, are exchanged.
In addition, close communication is maintained at various otherlevels, including the Central Labor-Management Meeting, theDivision Labor-Management Meeting, and the Sales Chapter
Labor-Management Meeting. Casio operates on a union-shop
basis; as a rule, all employees except for managers are membersof the union.
Helping senior staff prepare for retirement
Each year, Casio holds Senior Life Seminars for employees who
have just reached age 53 or age 58. The seminars cover topics
such as the pension system, as well as living costs, taxes, andhealth after retirement. This provides participants with anawareness of these issues while they are still working, and helps
them plan their post-retirement lives. In fiscal 2009, 159 employees
attended the seminars. Taught by an outside instructor, theseminars also provide financial information including details on thecosts required to sustain full retirement. These learning
opportunities have been well received by participants.

VacationsWith the goal of shortening the hours worked by employees eachyear, Casio is promoting an environment and culture thatencourages employees to fully utilize paid vacation time.
In fiscal 2009, 59.2% of paid vacation days were utilized at
Casio Computer Co., Ltd. The average number of paid vacation
days taken was 10.5 full days and 4.4 half days.
Casio also offers a Vacation Day Accumulation Program. Under
the program, when an employee is unable to work due to injury orillness, or the care needs of a family member, part of his or her
unclaimed paid vacation days that otherwise would expire is
carried over and made available for use. Furthermore, after each
decade of service, employees are granted an extra five days off.
Senior Life Seminar

Deputy Manager,
General Affairs Department,
Casio Electronics (Shenzhen) Co., Ltd.

Casio Corporate Report 200953

Employee Satisfaction

Motivating Employees to Take on Challenges

Overview of human resource system
Casio’s human resource system consists of three subsystems: theGrade System, Appraisal System and Compensation System.
The Grade System forms the base of Casio’s human resource
system. Under the system, the Qualification System applies tonon-managerial employees, who are promoted based on the growthof their ability to perform their duties, and the Professional Systemapplies to managers and specialists, who are graded and ranked
based on their individual functions and accomplishments. Casio
gives ample opportunities for employees to grow and improve theirskills by offering training and gives them chances to move up by
conducting in-house interviews.
In the Appraisal System, employees are evaluated in three areas,
namely, target achievement under management by objectives, work
performance (competency) in their job type, and contribution madetoward the department. The evaluation is made on a five-point
scale. Managers discuss the evaluation results individually with each
employee in order to seek a high level of understanding.
The Compensation System applies a salary range that is basedon job grade under the principle of a competitive salary. Pay raises
are given in harmony with performance evaluation and salary levels.
Bonuses are distributed in a balanced way, depending on
the evaluation.
Overview of human resource development
Casio has various programs with the intention of developing creative
employees that are eager to take on challenges and training
professionals with early tracking into specialized fields. Casio aims
to develop professionals in the form of strategic generalists who
pass on the company’s corporate culture, and technical specialists
who pass on the company’s unique technology and know-how. For
this purpose, based on the convictions that people grow throughtheir work and that the source of growth is personal motivation,
Casio helps employees improve their skills by fostering
environments that require the development of new abilities.
Accordingly, the company emphasizes on-the-job training to
improve practical skills, complemented by off-the-job training toTraining participants(persons)
2,200
1,900

45%

50%

1,600
1,300

60

Total participants

50

Percentage of
total employees

40

1,802

2,025

20

0

0 (%)

FY2009• Career Challenge System
This system lets employees periodically register their careers,
skills, and personal challenges with the company, and serves as areference for assisting managers to determine policies ondeveloping their subordinates and future placement planning.
• Career Challenge: Advanced
This program preferentially places employees who have been in
their current career position for a rather long time and hope tochallenge themselves to pursue work environments and careersthat require new skills, for the objective of self-improvement andmaking further contributions to the company, in their desired
divisions, if their desires meet the needs of the new department.
• Job Posting System
This system seeks to satisfy both the company’s business needs
and employee career direction, and is a program for priority
placement of suitable people, based on selection of candidates
for jobs which the company offers. It is operated jointly with otherCasio group companies.
• New Employee Training, Follow-up Training, Career
Development Training,
Training directed at young employees becomes a place forlearning the basics of being a Casio employee, and offers
opportunities for employees to consider their own career
directions, with training for new entrants as well as one-year andthree-year employees.
• Skill Selective Training
The training targets all regular employees, for the objectiveof effectively and efficiently acquiring diverse skills required forwork operations, in a training program that allows employees toselect from a large variety of training courses.
• Techno PowerThis is a technology exhibition held annually for the objective of
stimulating engineers, and of sharing and accumulating
technology, serving as a place for recognizing technology
superiority, patentability, completeness, and other in-houseadvanced technology.

Based on Japan’s Industrial Safety and Health Act, various otherlegal requirements, and Casio’s employment regulations, the entire
Casio Group is dedicated to building an environment which
ensures that all employees can work with peace of mind. Casio
strives to maintain and enhance employee health and to prevent
occupational injuries and eliminate any chance of recurrence if one
does occur. Similar measures have been adopted at groupcompanies outside Japan in compliance with each nation’s laws
and regulations.
Occupational health and safety activities
Casio has established Occupational Safety and Health Committees
everywhere Casio operations are located. The committees’
industrial physicians, occupational health managers, and labor andmanagement representatives promote policies tailored to each
workplace, so as to keep employees physically and mentally
healthy and to ensure occupational safety. Committee activities arereported to employees on the company’s intranet, and Casio alsoorganizes activities to educate employees about labor safety
and health.
Initiatives for managing and promoting employee health
Casio goes beyond employee health management. It also seeks,
by taking active measures to promote better health, to improve
employee motivation and raise productivity.
Employees receive regular health checks that are more thoroughthan legally mandated, in order to maintain and enhance their healthand to help prevent lifestyle-related diseases. An increased numberof industrial physicians have been stationed at principal Casio sites,
and careful health management activities are being carried out,
including offering health guidance to employees after their regular
health checks.
In the effort to prevent lifestyle-related illnesses, Casio is
promoting initiatives that focus on exercise and healthy eating. From
September to November every year, Casio holds a Walking
Campaign at its sites across Japan: 3,523 people participated infiscal 2009. In this way, Casio is providing opportunities for
employees and their families to improve their health through exercise.
The employee cafeterias provide healthy menu choices
featuring a balance of calories and nutrition. Wellness Fairs are also
held at all Casio cafeterias.
Casio holds “employee cafeteria conferences” attended by theemployees and medical staff of company sites as well as those
who run its cafeterias. The purpose of the meetings is to reportand share information on conditions in different regions and how

the company is responding, in order to ensure that employees arealways provided with a healthy dining experience.
Initiatives to discourage overwork
Casio is carrying out an initiative to prevent damaging healtheffects to the brain or heart from accumulated fatigue due to long
working hours. In order to ensure proper work schedules, allemployees that work 80 hours or more of overtime in a monthmust be interviewed by an industrial physician. The physician thenchecks the employee’s health condition, and provides the personwith advice and guidance. In this way, Casio is working to prevent
health problems from overwork, and to ensure employees observe
appropriate working hours.
Mental health care initiatives
Casio has established a mental health education system tosupport the mental health of its employees. As part of this system,
Casio Computer Co., Ltd., has initiated an e-Learning Programand a Self-Checkup for all its employees. A separate e-Learning
Program and a Program for Managers have also been created for
those in leadership positions. In addition to working to improveawareness of mental health issues, Casio has in-house clinics andan external Physical and Mental Health Hotline in place to offer
counseling in and outside the company.
Safety initiatives
Casio is committed to the goal of zero occupational injuries andoperates regular safety programs with the aim of maintaining an
accident-free record at all Casio work sites. In addition, each site
and group company conducts fire and disaster prevention/
evacuation drills, as well as general lifesaving classes to ensure
emergency preparedness. The company is also moving
aggressively to equip worksites with automatic external
defibrillators (AEDs) and other emergency equipment.
Occupational injuries at Casio Computer Co., Ltd. (in the last four years)
Injury frequency rate*1

Injury severity rate*2

Casio

Manufacturers

Casio

Manufacturers

FY2006

0.60

1.01

0.002

0.090

FY2007

1.11

1.02

0.027

0.110

FY2008

0.33

1.09

0.004

0.100

FY2009

0.51

1.12

0.005

0.100

*1. Represents the number of deaths and injuries, per 1 million actual cumulative working hours, resulting
from occupational accidents. (Deaths and injuries from occupational accidents ÷ Cumulative actual
working hours) × 1,000,000*2. Work days lost per 1,000 actual cumulative working hours; indicates accident severity(Cumulative work days lost ÷ Cumulative actual working hours) ×1,000* Including employees transferred in from other companies, but not including employees transferred out toother companies, or part-time employees* The term “occupational injuries” here includes injuries or illnesses (requiring at least 1 day off work) anddeaths of workers in connection with the performance of their jobs.

Training in progress• Advanced Technology Seminars
These are in-house seminars mainly targeting engineers, usingcase studies of innovators at other companies who were able todevelop revolutionary new manufacturing methods and create
new businesses, for the objective of understanding advanced
technology trends and of nurturing a development mindset andthe will to take on challenges.

30

1,000

FY2008Main Human Resource Development Programs

Initiatives for Health and Safety

Employee Satisfaction

Policies for effectively appointing and deploying employees
In order to achieve fairness and to maximize “Creativity andContribution,” Casio’s human resource system is being continually
improved. Under Casio’s merit-driven system, employees are
rewarded when they demonstrate the abilities required for theirposition, no matter their academic background or age. To
complement this, Casio’s performance-based approach
determines compensation based on employees’ actual results on
the job. Casio’s human resource system aims to strike an optimalbalance between the development of employees under the meritdriven system, and the growth of the company facilitated by theperformance-based approach.

provide theoretical knowledge. In recent years, an effective training
system has been created featuring a choice of training courses.

For more details visit the following site.
Casio’s Human Resources Development System

URL

http://www.casio.co.jp/saiyou/teiki/reference.html (in Japanese)

Wellness Fair menu at an employee cafeteria

Each year, about half of Casio employees receive some form of training.

54 Casio Corporate Report 2009

Casio Corporate Report 200955

Social Contribution

Social Contribution Initiatives
Striving to be a model corporate citizen, Casio makes the most of its unique know-how and management
resources to fulfill its various social responsibilities.

Philosophy on Social Contribution

Educationof the next
generation

Cultureand arts

Casio’s social
contribution
priorities

Community
serviceStudy
andresearch

Environmental
conservation

Activities of the Casio Science
Promotion Foundation
About the Foundation
The Casio Science Promotion Foundation was established in1982 by the four Kashio brothers and the former chairman,
Shigeru Kashio.
The Foundation provides research grants with the principle aimof fostering pioneering and creative research in the early stages byyoung researchers who are persevering in challenging researchwith limited funding. This is based on the philosophy that advanced
R&D should be promoted in various fields, in order to fulfill theFoundation’s mission of helping Japan contribute to the world as anation of advanced technology. The Foundation provides grants ina wide range of scientific fields—from electronic and mechanicalengineering, to natural sciences related to health, to energy
saving—as well as in the cultural sciences including humanresources development and human behavior.
Over the last 26 years, the Foundation has provided a total of
about ¥1.229 billion in 972 grants.

Grants from the Casio Science Promotion Foundation(¥ million)(grants)

60

60

Total amount (¥ million)
Number of grants
50

50

40

40

30

30

20

1984

1988

1993

1998

2003

Message from the Foundation
In recent years, there has been a rapid increase in the need forresearch grants, and in fiscal 2009 we received four times the
anticipated number of applications.
In order to properly meet this need,
we have been working to provide
research grants in a fair andimpartial manner by improving ourreview and selection system. In
coming years, we will keep striving
to choose specific research themesthat meet the changing needsof society.
Tomohiro Shimizu

For more details visit the website below.
Casio Science Promotion Foundation

URL

http://www.casio.co.jp/company/zaidan/ (in Japanese)

56 Casio Corporate Report 2009

In August 2007, Casio Computer Co., Ltd., developed its own
educational program for elementary school students in Japan, andhas been visiting schools and welcoming students on toursof its facilities.
The aim of the school-visit program is to raise the awareness ofchildren concerning the three social issues of the environment,poverty, and human rights, through studies focused on the three
keywords of “connectedness,” “creativity,” and “emotional
growth.” The content relating to “connectedness” involves
considering ties with family members, teachers and friends, whilethe “creativity” content covers the limitless power of humans tocreate things. The “emotional growth” portion helps the children to
appreciate the importance of nature and of life, and to be awarethat no one can live without their support. At the same time, theprogram is designed so that the children become aware of many
real-life challenges relating to the three issues of environmental
protection, poverty, and human rights.
The aim of the program for student visits to Casio involves
raising their awareness of global environmental protection. Throughtours of the Hachioji R&D Center, the most cutting-edge
environmentally friendly facility in the Casio group, the children
learn about everyday environmental activities such as corporate
energy-saving activities as well as trash sorting.
In fiscal 2009, Casio provided educational activities for a total of
759 students. Casio aims to keep contributing to the broader
society through this program, which benefits from theunderstanding and support of many people.

Kofu Casio has been running a “Factory Tours for 10,000 People”
program since 2004. The goal of the program is to provide a place
for young people to discover that family ties, the power of science,and pursuing one’s dreams are three important sources ofinspiration for a meaningful life. Children discover the value offamily ties by coming to see the place where their parents work,
while also learning about the ties that bind together their entire
society. They get a rare opportunity to see cutting-edge productcreation, and learn about product construction and function byactually trying simple product assembly themselves. This gives the
young visitors a glimpse into the wonders of science. Also, bylistening to enthusiastic employees, they discover that they canrealize their dreams through hard work and perseverance. Kofu
Casio believes it can help educate the leaders of the future, by
providing theseopportunities fordiscovery to children.
The company
welcomed 10 schools
in fiscal 2009, and a
total of 303 students
and teachers toured
the factory. The total
number of visitorssince the start of the
program is now 1,225.

Calculator assembly classClasses by a G-SHOCK Developer

Message from a Grant Recipient

In order to realize the latent potentialof technology, not only a naturalscience or engineering perspectiveis essential, but also a social science
viewpoint which clarifies how
technology is understood in society,and how society will end up using it.
Accordingly, it is necessary tocontinuously accumulate knowledge
through steady fieldwork, without
being influenced by short-term
trends. I am deeply grateful to havereceived a grant in this field.

Factory Tours for 10,000 People

Message from a Casio Instructor

Secretary General, Casio Science
Promotion Foundation

Topic: Research on the potential for supporting thetransmission of embodied expertise using information
technology

The 26th grant presentation ceremony (fiscal 2009)20

2008 2009(FY)

Activities to Help Nurture the
Next Generation

Social Contribution

Aiming to help create a healthy, generous society, Casio isearnestly engaged in a variety of social contribution initiatives.
Casio takes good corporate citizenship literally, so its process fordetermining the most useful things to do is guided bycommunication with various stakeholders. The five priority themesof Casio’s social contribution initiatives are outlined in the figure
below. Leveraging its unique know-how and management
resources as well as the wide range of knowledge and experience
possessed by its employees, Casio fulfills its social responsibilities
in its own innovative way.

Grants in Fiscal 2009
In addition to its 21 basic categories in 5 fields, in fiscal 2009 theFoundation has established 3 special topics considered to beimportant based on recent social trends: miniaturization andenergy-saving technology; electronic devices for the maintenanceand improvement of health; and human intellectual progress in an
IT society.
After asking 118 universities to submit research topic proposals,
the Foundation received the highest number of applications to date:
185 proposals from 69 universities. The large number of proposals on
health-related topics was an indicator of the current needs of society.
After a rigorous selection process, ¥46 million (38 grants) wasawarded in the natural sciences, and ¥7 million (5 grants) wasawarded in the cultural sciences. About half the grant recipients are in
their thirties, and many young researchers representing the promiseof the next generation attended the grant presentation ceremony heldin December 2008.

Casio instructor visits a school

In summer 2008, I participated in the Social Studies for HighSchool Students program sponsored by Nikkei Inc. Since
Casio Computer Co., Ltd., was one of the participatingcompanies at the event, I taught a class called, “Breaking
Away from Convention and Never Giving Up: The G-SHOCK
Development Story.” Based on requests from teachers who
saw my class, I began taking my class to their schools.
I wanted to convey three aspects of my job: the wonderfulfeeling of accomplishment, the importance of working hard,and never giving up. Although I was unsure if I could reach thestudents with my message, I was
glad to see their shining eyes andget their full attention. It was theirreaction to my class that gave me
so much energy. I was so delighted
to find out that many students were
inspired to try and achieve theirgoals. Although my time withstudents was short, I hope theseclasses will be an investment
Kikuo Ibein the future.
Timepiece Division

Yoko Takeda
Professor, Graduate School ofEnvironment and Information
Sciences
Yokohama National University
Students tour a Casio facility

Casio Corporate Report 200957

Social Contribution

Supporting a Japanese
Thesis Contest in China

Ahead of the Toyako G8 Summit held in Hokkaido in July 2008, a
Kids’ Toyako Summit was held on June 16 and 19, 2008,
sponsored by the International Art and Technology Cooperation
Organization. Casio America, Inc., provided support for the
program, and the company’s video conference room was used as
the venue for the New York event. The Kids’ Toyako Summit wasplanned as a way to send a message to the world, by establishinga forum for kids to discuss global environmental issues via videoconference. The young participants were from countries aroundthe world involved in the Kids’ ISO 14000 program. As a supporterof the Kids’ ISO 14000 program in the US, Casio America has
been involved in the event since 2007.
Children from the US, Japan, and Kuwait participated in thesummit, discussed their own
environmental protection
activities and future activity
proposals, and made anappeal to the G8 leaders. The
Kids’ Summit content wascompiled into a proposal
report and sent to the leaders
attending the G8 summit.

As a first-time participant in the Ministry of Environment’s Eco
Internship Program, Casio Computer Co., Ltd., welcomed two
university interns for two weeks from September 1 to 12, 2008.
The Eco Internship Program aims to develop the next generation ofhuman resources with a high level of environmental awareness, byallowing undergraduate and graduate students to experienceenvironmental management work at companies. Along withdeepening understanding of corporate environmental measures,the program provides opportunities for students to consider what
they can do as members of the workforce to actually addressenvironmental issues, and what society needs to do in order toresolve these issues.
During their internships, the students gathered and analyzed
environmental impact data for each Casio site at the Environment
Center of Casio Computer Co., Ltd., and carried out productlifecycle assessments. In addition, the students were exposed tovarious experiences, including a tour of environmental efforts at theHachioji R&D Center, which
received an AAA rating, thehighest available, in the fiscal
2007 interim report of theTokyo CO2 Emission
Reduction Program, as well as
the Ome Office of Casio
Micronics Co., Ltd.
Intern training

Social contribution initiatives
Category

Education* Kids’ ISO 14000 program was established by the International Art and Technology Cooperation Organization(ArTech). It is a program designed to educate children about environmental issues. It also encourages them
to approach the future with a spirit of hope and innovation, by helping each one of them to improve theirability to resolve problems and pursue a meaningful life.

Relief Efforts for Disaster Victims
When a major natural disaster strikes, Casio provides relief todisaster victims, as well as support for rapid post-disasterreconstruction.

Theme

Details

Implementing organization

ClassPad experimental classes as part of Super Science High School

As a special class at the Hitachi 1st Senior High School in Ibaraki prefecture,experimental classes were held using the ClassPad Super Graph scientific calculator.

Casio Computer Co., Ltd.

Sending Casio designers to teach in university classrooms

Sent a GUI designer to Musashino Art University as an information design
instructor. The designer also reviewed the work of students.

Casio Computer Co., Ltd.

Lectures at universities

Gave lectures at Yamagata University about advanced technologies for plastic molding.

Yamagata Casio Co., Ltd.

Student training as part of university courses

Provided 3 months of practical training to 13 Thai university students in work
relating to their majors, consistent with their university classes. Received an award
for “providing good support and giving learning opportunities to vocational students
in the southern province.”

Casio (Thailand) Co., Ltd.

Welcoming university student interns

Provided vocational training to 14 university students.

Kochi Casio Co., Ltd.

Internship participation

Hosted 2 university students and gave them 2 weeks of on-the-job training.

Casio Information Systems Co., Ltd.
and others

Educational activities at the Casio World Open Golf Tournament

1) Invited local elementary school students to the competition. Gave them a tour of theevent as part of an extra-curricular learning program, let them experience the gameof Snag Golf, and gave them a tour of the broadcasting center.
2) Tour golfers gave the students golf lessons.

Casio Computer Co., Ltd.

Setting up a Kids’ ISO 14000 booth at Japan Day

Casio America set up a booth for the Kids’ ISO 14000 program at the Japan Day event
held in Manhattan, New York. The booth planning, construction, and operation was all
carried out by Casio employees, and it enlightened visitors about the Kids’ ISO 14000
program and the importance of environmental protection.

Casio America, Inc.

Participation in tree-planting activities

In order to help beautify the urban environment in Shenzhen, China, 35 Casio
employees participated in a tree-planting event sponsored by the Shenzhen
Greening Fund, and planted 50 trees.

Casio Electronic (Shenzhen) Co., Ltd.

Participation in Lights Out Campaign

The Japanese Ministry of the Environment sponsored a CO2 Reduction Lights Out
Campaign on June 21 and July 7, 2008. On these 2 days, 8 Casio Group companies
participated in activities to turn off unnecessary lights. By saving 1,495 kWh ofelectricity, the total CO2 reduction effect of this effort was about 565 kg of CO2.

Casio Group

Promoting Ecocap activities

Casio Techno, Casio Information Systems, Casio Business Service, and Seiyo
Electronics joined an Ecocap campaign carried out by the NPO Ecocap Movement.

Casio Group

Participation in Kokubu River grass burning

As a contribution to the local community, 34 employees took part in the clean-up(grass burning) along the Kokubu River.

Kochi Casio Co., Ltd.

Participation in the Saitama Global Warming Prevention Winter Campaign

A total of 198 employees and family members participated in this winterenergy-saving initiative by keeping their homes at 20 °C, wearing warm clothing,
and turning off unneeded lights and electrical appliances.

Casio Electronic ManufacturingCo., Ltd.

Cleanup Day

Cleanup performed along the streets around company sites. About 60 employees
participated twice during the year.

Kofu Casio Co., Ltd.

Participation in blood donation drive

A total of 615 people at Casio Computer Co., Ltd., donated blood twice during the year.
At Kofu Casio and Kochi Casio 96 and 53 employees, respectively, gave blood twice,while 78 employees at Casio Hitachi Mobile donated blood once during the year.

Casio Group

Subcontracting of product disassembly and unpacking
to workshops employing people with disabilities

Consigned work to workshops for people with disabilities. The work involved
disassembly, unpacking, and sorting of disposed products, accessories and sales
promotion materials. This contributed to the local community by helping people withdisabilities to become independent.

Casio Business Service Co., Ltd.

Environment

Using the conference room at Casio AmericaAward ceremony

Participating in the Eco Internship Programof Japan’s Ministry of the Environment

List of Other Major Social Contribution Initiatives and Donations in Fiscal 2009

Other

Social Contribution

Casio (Shanghai) Co., Ltd., provided support for the first
graduation thesis contest for Chinese graduate students in the fieldof Japanese-language studies. The contest was sponsored by theJapan Association of Chinese Language Education, the GuidanceCommittee for Higher Education at China’s Ministry of Education,and the Beijing Center for Japanese Studies.
In recent years, there has been an increase in the number ofpeople studying Japanese in China, and there is an urgent need toquickly train Japanese instructors. As a manufacturer of electronic
dictionaries, Casio is actively supporting this effort, and held its firstthesis contest, called the Casio Cup.
The award ceremony was held on October 25, 2008, at the
Beijing Center for Japanese Studies of Beijing Foreign Studies
University. Of the numerous
entries submitted from 29
graduate schools, 33 wereselected as outstanding
theses. The contest will beheld every year, as Casio(Shanghai) works to increase
its contribution to the field of
education in China.

Casio America Supports
the Kids’ Toyako Summit

DonationsFiscal 2009 initiatives• May: Contributed ¥11.1 million to a relief fund for victims ofthe major earthquake in Sichuan, China• May: Contributed ¥3 million to a fund for the victims of
Cyclone Nargis in Myanmar• July: Contributed ¥2 million to a fund for the victims of the
Iwate-Miyagi Nairiku Earthquake in Japan

Category

Project title

Education

The Hachioji R&D Center of Casio Computer Co., Ltd., has beenpromoting initiatives that go beyond relying on the energy-saving
design and construction of its building to create further energy
savings by eliminating unnecessary lighting and improving theoperation of air conditioning equipment. In recognition of these
efforts, in February 2009, theHachioji R&D Center received
a Kanto Bureau of Economy,
Trade and Industry Director’sAward, as part of the Awards
for Excellence in Factory
Energy Management in 2008
given by Japan’s Ministry of
Economy, Trade and Industry.

Environment

Academics andresearch

Culture and arts

Local
communities

Other

Implementing organization
Casio Computer Co., Ltd.

Support for the Cambodia Student Chorus Promotion Project, and donated projectors

Nikkei, Inc.
NPO Japan Team of Young Human Power (JHP)

Casio Computer Co., Ltd.
Casio Information Systems Co., Ltd.

Donations to the Costco Scholarship Fund

Costco Scholarship Fund

Casio America, Inc.

Education assistance to elementary school children through Office Max ACTS

Office Max ACTS

Casio America, Inc.

Support for the 2nd Junior High School English Reading Comprehension Contest

Shanghai Foreign Language Education Press
Peking University, Beijing Foreign Language Studies University, Tianjin Foreign
Languages University, Shanghai International Studies University, East China Universityof Political Science and Law, and Tongji University, etc.

Casio (Shanghai) Co., Ltd.

Donated electronic musical instruments to help create music classrooms at local elementary schools

Yaan, Sichuan, China

Casio (Shanghai) Co., Ltd.

Support for the International Art & Technology Cooperation Organization (ArTech)

International Art & Technology Cooperation Organization (ArTech) (NGO)

Casio Computer Co., Ltd.

Donation to Keidanren Nature Conservation Fund

Keidanren Nature Conservation Fund

Casio Computer Co., Ltd.

Support for the “Think the Earth Project”

Think the Earth Project (NPO)

Casio Computer Co., Ltd.

Support for WWF Japan (World Wide Fund for Nature Japan)

WWF Japan (NGO)

Casio Computer Co., Ltd.

Donation to the Japan Industrial Waste Management Foundation

Japan Industrial Waste Management Foundation

Casio Computer Co., Ltd.

Donation to IHES Japan Fund

Institut des Hautes Études Scientifiques (IHES) Japan Fund

Casio Computer Co., Ltd.

Support for the NHK Symphony Orchestra

NHK Symphony Orchestra

Casio Computer Co., Ltd.

Support for the Tokyo Philharmonic Orchestra

Tokyo Philharmonic Orchestra

Casio Computer Co., Ltd.

Sponsorship of the Friends Association, MAISON DE LA CULTURE DU JAPON À PARIS

Friends Association, MAISON DE LA CULTURE DU JAPON À PARIS

Casio Computer Co., Ltd.

Support for the National Children’s Keyboard Contest

Soong Ching Ling Foundation

Casio (Shanghai) Co., Ltd.

Support for Cherry Marathon in Higashine City

Executive Committee for the Higashine Cherry Marathon

Yamagata Casio Co., Ltd.

Support for the cultivation of tulip bulbs and Ohga lotus for the preservation of fallow rice fields

Hamura City, Tokyo

Casio Computer Co., Ltd.

Support for World Children’s Baseball Fairs

World Children’s Baseball Foundation

Casio Computer Co., Ltd.

Cooperation with the Kanpa fundraising activity for promoting social
welfare sponsored by the Casio Labor Union

Japan Committee for UNICEF, National Federation of UNESCO Associations in Japan,
and the Ashinaga organization

Volunteers from the Casio Labor Union

Holding a live charity concert to raise money for seeing-eye dog training

EyemateCasio Group employee volunteers

Support for a hospice for AIDS patients and those infected with HIV

Prabaht Namphu Temple

Casio (Thailand) employee volunteers

Established the Casio Education Fellowship

Casio Receives Award for Excellence inEnergy Management

Donation recipientInternational University of Japan

Support for the International University of Japan
Support for the Nikkei Education Challenge 2008

Casio (Shanghai) Co., Ltd.

Award Ceremony

58 Casio Corporate Report 2009

Casio Corporate Report 200959

Casio’s Social Initiatives:
Action Plans and Performance

Independent Opinion of the Casio Corporate Report 2009
The opinion presented here was written based on the content of thisreport and interviews with Casio personnel responsible for humanresources, procurement, environmental and CSR initiatives.
The report does not make it clear whether Casio is fully meeting its
responsibilities to employees, who are vitally important stakeholders. For
instance, it does not indicate whether the number of people working in
the Casio Group including dispatch and contract employees was reduced
as part of measures to deal with the global economic crisis that began
last fall. Except for this point, it can be said that Casio’s CSR initiatives
are being promoted using plan-do-check-act (PDCA) management cycles
with a focus on reducing the company’s environmental impact.

Theme

FY 2009 Targets

FY 2009 Performance

FY 2010 Targets & Plans

Corporate
Governance

Maintenance and operation ofinternal controls compliant withJapan’s Financial Instruments
and Exchange Act

Constructed a monitoring system and rules for the early detection ofrisks that may impact financial reporting, for important operatingprocesses at the main divisions and the group companies.
Evaluated the maintenance and operation conditions for internal controls
based on common evaluation standards.

Promote further improvement of internal controls basedon the Financial Instruments and Exchange Act.

Ensuring thorough compliancethrough the Risk Management
Committee

Promoted risk management based on 20 major laws.

Monitor to confirm ongoing improvement, andimplement simulations to confirm crisis response
capabilities, related to major laws.

Ensuring thorough complianceeducation

Revised the Casio Group Code of Conduct.
Carried out education on the Code of Conduct at group companies
in Japan.
Conducted a corporate creed questionnaire.

Carry out education on the Casio Group Code of Conductat group companies in Japan.
Carry out education on the Charter of Creativity for Casioand Casio Common Commitment.

Tightening information security

Strengthened subcontractor supervision.
Developed personal information protection activities at group companies.

Promote measures to prevent unauthorized use or
falsification of data in information systems.
Strengthen information security controls at groupcompanies.

Quality improvement

Addressed priority issues relating to the quality improvement establishedfor each product (mainly new products).
Implemented measures to prevent defect reoccurrence such as revisingquality standards and strengthening the quality control system.

Set priority issues for quality improvement and carry out
priority measures.
Take thorough initiatives for defect reoccurrence
prevention and improve technological ability to prevent
problems.

Thorough product safety

Verified safety by forced ignition testing and revised design andmanufacturing standards.
Performed general safety inspection and legal compliance for lithium-ion
rechargeable batteries, newly covered by Japan’s Electrical Applianceand Material Safety Act.

Implement the Product Safety Action Plan.
Revise design and manufacturing standards with reference
to accident cases at Casio and other companies.
Ensure strict compliance with all laws and regulations
related to safety.

Improving customer
satisfaction

Ensured that customer feedback was relayed to the relevant
departments.
Regularly carried out customer satisfaction surveys.
Improved parts procurement, repair system, and repair technology
operations with the goal of shortening repair times.

Promote ongoing improvement of service quality basedon the enhancement of repair speed and quality.
Promote ongoing improvement of product support
websites.
Promote activities to improve product functions based on
customer feedback.

Stable supply of products

Reduced the production lead time by 30% for watches and main
consumer products.
Implemented standardization for information management systems at
production sites in China.
Implemented multiple-item production in plants for import processing
in China.

Combine management systems at production sites.
Carry out integrated management of global logistics forthe entire group, from the customer’s standpoint.
Reduce country risk.

Promoting CSR activities
among suppliers

Conducted a questionnaire relating to corporate social responsibility(CSR) fulfillment among main suppliers in Japan.
Provided the questionnaire results as feedback to main suppliers,
along with information on Casio’s approach to CSR fulfillment.
Held Procurement Policies briefings in Southern China and Thailand.

Continue to hold material procurement policy briefings inSouthern China and Thailand.
Conduct CSR questionnaires in China and Thailand as
well.

Promoting activities for theadvancement of female
employees

Established the Female Employees Advancement Working Group.
Implemented an e-learning program to promote the advancement offemale employees, and a female employee advancement seminar.

Continue the activities of the Female Employees
Advancement Working Group.
Continue seminars and education.

Promoting the employment of
persons with disabilities

Achieved the legally mandated employment rate of 1.8%
(Casio Computer Co., Ltd.).

Meet the legally mandated employment rate atmain group companies.

Promoting the employment ofseniors

Actively provided employment opportunities to retirees.

Continue to provide employment opportunities
to retirees.

Initiatives to help employees
balance work and family
responsibilities

As a labor-management initiative, established the Special Committee on
Measures to Aid the Nurturing of the Next Generation of Children, andheld 4 meetings.
Expanded the scope of the child care leave system (permitting leave up
until the child is 2 years old).
Improved the percentage of eligible female employees taking child careleave (from 80% to 90%).

Take initiatives to help employees balance work andfamily responsibilities.
Improve the nursing care leave system.
Continue to improve the percentage of eligible female
employees taking childcare leave (above 90%).

Creating supportive workplaces
that encourage employees totake on challenges

Promoted a career challenge system.
Implemented a personnel recruitment system at the main groupcompanies.
Promoted skill selective training.

Promote the career challenge system.
Implement a personnel recruitment system at maingroup companies.
Promote skill selective training.

Promoting health and safety
along with health management

Established a training system for mental health issues, andoffered training tailored for staff and managers.

Improve workplace environments and expand
efforts to main group companies.

Promoting activities to nurture
the next generation

Provided learning opportunities for a total of 759 students (Casio
Computer Co., Ltd.).
Hosted tours for 303 students and teachers (Kofu Casio).

Continue to visit schools and welcome school tours.

Supporting cutting-edge scienceand technology research

Casio Science Promotion Foundation awarded a total of 43 research
grants worth ¥53 million.

Continue to support research through the Casio
Science Promotion Foundation.

Compliance andRisk Management

Responsibility to
Customers

Responsibility toSuppliers

Responsibility to
Employees

Responsibility to
Local Communities

60 Casio Corporate Report 2009

Commendable efforts by Casio• The utilization of geothermal exchange technology to heat and coolthe new office building in Germany (page 38) is commendable.
Casio should make the same efforts in other countries, even at
production sites.
Points for improvement while commending progress to date
• The report provides good disclosure of environmental data for principal
sites in and outside Japan, including group companies. However,Casio needs to provide more group-wide information on initiatives
other than environmental protection in order to improve the accuracyof the report for the group as a whole.
• Regarding the reduction of greenhouse gases (page 41), Casio hasmade commendable progress on the development of processes thatuse F2 as an alternative for SF6, which has a high global warming
factor, for dry etching during TFT LCD manufacturing. However, it isstrongly recommended that Casio take immediate steps to collectand treat current emissions and introduce this alternative on mass
production lines.
• Concerning CSR initiatives for suppliers (pages 24 and 25), it ispraiseworthy that Casio has created opportunities for suppliers
outside Japan to implement CSR initiatives such as the reduction ofenvironmental impact and human rights measures for workers.
Looking to the future, Casio should establish a system for“visualizing” the environmental and human rights initiatives andproblems of its suppliers, as well as forums for sharing and honoring
best practices, and resolving relevant issues.
• With regard to the promotion of employment for persons withdisabilities (page 53), it is admirable that Casio Computer Co., Ltd.,

has finally achieved its goal of reaching Japan’s legally mandated
employment rate, which will remain a challenge over the long term.
However, the company should work with the parties concerned tomake it easier for employees with disabilities to continue working at
the Casio group.
Points for improvement• Looking at the group-wide CSR initiatives (page 12), Casio must
quickly create a medium-term CSR strategy, treating this as animportant element in its Medium-term Management Plan, and alsoestablish a system for bottom-up promotion of the strategy.
• Although paper use is increasing along with Casio’s growing numberof sales sites worldwide (page 47), the company should accelerate
initiatives to reduce the number of sheets used per site, based on acareful re-examination of paper consumption. Casio should study theexamples of other companies, for example, introducing universal
design fonts for its user manuals and other publications.
• Casio must take more sophisticated steps concerning reuse of theincreasingly expensive rare metals used in high-performance
products such as digital cameras and electronic dictionaries, forwhich recycling systems are not yet established. Measures could
include recovery of rare metals in used products, which can belinked to sales promotion, and development of products that use
recycled metals.
• Regarding the group-wide personnel portfolio (page 52), Casio
should establish a long-term plan for building recruitment and training
systems that can capitalize on a diverse workforce as a truly
global company.

International Institute for Human, Organization and the Earth (IIHOE)

Hideto Kawakita
Chief Executive Officer

Profile of IIHOE:International Institute for Human, Organization and the Earth(IIHOE) is a nonprofit organization (NPO) that has been
supporting NPO management and CSR capacity building
since 1994. http://blog.canpan.info/iihoe (in Japanese)

Responses to the Independent Opinion of the 2008 Report
Independent Opinion Looking to the future, Casio should establish a system for“visualizing” the environmental and human rights initiatives and problemsof its suppliers, as well as forums for sharing and honoring best practices,and resolving relevant issues.
Casio’s Response In fiscal 2010, Casio will not only convey the Casio CSR
approach at vendor meetings overseas, it will also promote informationexchange and the sharing of model CSR initiatives by suppliers. The
company also conducted a supplier questionnaire and ascertained thestatus of CSR initiative implementation. Casio is looking into ways to“visualize” initiatives by analyzing the questionnaire results.
Independent Opinion In this report, Casio should present more detailed data ongroup companies in Japan and overseas, and improve the accuracy of
the report from the point of view of the group as a whole.
Casio’s Response In the 2009 Casio Corporate Report, Casio endeavored toincorporate many topics that related to the entire group, along with groupcompany initiatives and messages from group company employees. In
the future, the company will work more closely with relevant sites, in orderto improve the accuracy of coverage regarding the entire group.
Independent Opinion Casio must take more sophisticated steps concerning
reuse of the increasingly expensive rare metals used in high performance
products such as cellular phones, digital cameras and electronic
dictionaries for which recycling systems are not yet established.
Measures would include recovery of rare metals and development of
products that use recycled metals.
Casio’s Response In order to resolve the core of this problem, Casio has
been working to replace rare metals and reduce the amount used in the
upstream processes. The company participates in a joint industryacademic research project commissioned by Japan’s Ministry of
Economy, Trade and Industry in fiscal 2008, and from NEDO in fiscal
2009, in order to develop an alternative for indium. Through this initiative,
the project succeeded in developing a manufacturing process fortransparent electrodes for TFT LCDs based on zinc oxide. Casio is also
reducing the amount of rare metals used through the minimization ofsemiconductor chip size, while carrying out development for solder-lessmanufacturing based on high-density EWLP mounting technology. The
company also collects, recycles and reuses recycled materials from
cellular phones through the Mobile Recycle Network (MRN), mainly

operated by the Communications and Information Network Association ofJapan (CIAJ).
Independent Opinion Casio should establish a groupwide personnel portfolio
based on a long-term plan, building recruitment and training systems thatcan capitalize on a diverse workforce as a truly global company.
Casio’s Response Casio is striving to create workplaces that respect thediversity, character, and individuality of employees. The company ispromoting the hiring of local employees at affiliated companies outside
Japan in order to encourage globalization of the group, and is working todevelop global personnel and promote them to management positions.
Along with the growth of Casio’s overseas business, opportunities for
non-Japanese employees are increasing, and the company is working
more actively to hire and develop global human resources from a medium
and long-term perspective.
Independent Opinion Rather than dividing the company’s emergency response
systems between the relevant departments according to the type of
emergency such as accidents, infectious diseases, and IT-related
incidents, Casio should establish an integrated framework. In addition,
Casio must also position support for the local communities around Casio
offices as an important social element of its business continuity plan, andprepare to provide this support.
Casio’s Response Although Casio is building a separate system for each typeof emergency, such as unexpected incidents, accidents, and natural
disasters, it is working to integrate its crisis management systems fromthe perspective of business continuity management. The main sites of
Casio Computer Co., Ltd., are working together with community
representatives and government officials to build cooperative systems fordisaster response, for instance, for participation in disaster prevention
drills, and preparing emergency supplies. The same activities will bepromoted at group companies in the future.
Independent Opinion Casio has not yet achieved Japan’s legally mandated
employment rate for persons with disabilities. In order to fulfill thisrequirement, the company must study the measures taken by othercompanies and promptly carry out more active development of suitablejob types.
Casio’s Response As of April 1, 2009, Casio had achieved the legally mandated employment rate of 1.8% for persons with disabilities (page 55).

Casio Corporate Report 200961