Casio Corporate ReportEditorial Policy
Casio began publishing its Environmental Report in 1999. In 2004,
the publication was changed to the Sustainability Report with theaddition of social and economic content. In 2005, it was renamed
the Corporate Social Responsibility Report, and included more
content on Casio’s many efforts to fulfill its corporate
responsibilities.
In 2006, the publication was combined with the previously
separate Corporate Profile, which covered Casio’s business areas
and main products, and entitled the Corporate Report.
This year’s Corporate Report is designed to present the
information that is most important to disclose and other material ofprimary interest to most stakeholders. Reference material available
on the Casio website provides more detailed information andcovers additional topics.

The other features of this year’s report are as follows.
• It presents the opinions of employees and other persons involvedin Casio’s business activities, and shows how they are
implementing CSR activities.
• It covers CSR initiatives outside Japan, including those ofoverseas group companies.
• The content has been presented in an easy-to-understandformat, so that all stakeholders can easily read the material.
• Graphs and diagrams have been designed so that they areeasy for everyone to view, including those with different
color perception.
• Contact information and a website address have been provided
on the back cover to help promote interactive communication
with stakeholders.

Scope of the Report● PeriodThis report covers fiscal 2007 (April 1, 2006 to March 31, 2007),and also includes some information pertaining to fiscal 2008.
● 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 in each 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 companies and organizations included inenvironmental accounting and environmental impact data areshown in the tables below.

● Guidelines Used as a Basis or ReferenceThis report was prepared in compliance with the Environmental
Reporting Guidelines (2003 Edition) issued by Japan’s Ministry of
the Environment, and also with reference to the Sustainability
Reporting Guidelines 2002 of the Global Reporting Initiative (GRI).

Group Companies in Japan

Overseas Group Companies■ Electronics Segment■ Electronic Components Segment
Name used in the report
Hachioji R&D Center, Casio Computer Co., Ltd.
Kofu Casio Co., Ltd.
Kochi Casio Co., Ltd.
Casio Micronics Co., Ltd.
Casio Electronic Devices Co., Ltd.

Number of sites
1
2
1
3
1

■ Electronics Segment
Name used in the report
Headquarters, Casio Computer Co., Ltd.
Hamura R&D Center, Casio Computer Co., Ltd.
Casio Electronic Manufacturing Co., Ltd.
Yamagata Casio Co., Ltd.
Casio Techno Co., Ltd.
Casio Hitachi Mobile Communications Co., Ltd.
Casio Soft Co., Ltd.
Casio Information Systems Co., Ltd.
Casio I-net Solution Co., Ltd.
Casio Support System Co., Ltd.
Casio Business Service Co., Ltd.
Casio Information Service Co., Ltd.
Casio Marketing, Inc.
Casio Communication Brains, Inc.
Casio Entertainment, Inc.*
Seiyo Electronics Co., Ltd.
Shin Nihon Casio Data Research Co., Ltd.
Casio Field Marketing Co., Ltd.

GRI (Sustainability Reporting Guidelines 2002)
Content Index

Number of sites
1
1
1
2
1
2
1
1
1
3
1
1
1
1
1
1
1
1

Name used in the report
Casio Korea Co., Ltd.
Casio Taiwan Co., Ltd.
Casio Computer (Hong Kong) Ltd.
Casio Electronic Technology (Zhongshan) Co., Ltd.
Casio Electronics (Shenzhen) Co.,Ltd.
Casio (Shanghai) Co., Ltd. *Casio (Thailand) Co., Ltd.
Casio Singapore Pte., Ltd.
PT. Casio Electronics Indonesia
Casio India Co., Pvt. Ltd.
Casio America, Inc.
Casio Canada Ltd.
Casio Europe GmbH
Casio Electronics Co., Ltd.
Casio France S.A.
Casio (Guangzhou) Co., Ltd.
Casio Electronics Design Center (G.Z.) Co., Ltd.
Casio Soft (Shanghai) Co., Ltd.
Casio Benelux B. V.
Casio Scandinavia AS
Casio España S. L.
Guangzhou Casio Techno Co., Ltd.*
Rising Spirit Co., Ltd.**These sites are included in the report only with respect to their environmental
conservation cost and economic impact in the “Environmental Accounting”
section (see pages 46-47).

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 time of 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.

Casio Corporate Report 2007

Number of sites
1
1
2
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1

FY 2007 Data by Operational Site
http://world.casio.com/env/site2006/

Issued September 2007
Previous publication: January 2007

Contents
Message from the President on Casio’s Social Responsibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 02

Corporate Profile
History of Casio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 04
Product Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 06
Management Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 08
Business Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

CSR Activity Report

CSR Highlights
Image Processing Technology Creates New Value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
“No.1 Mobile Telephone Handset in Customer Satisfaction, Two Years in a Row” . . . . . . . . . . . . . . . 18
Improving Performance at a Laboratory with Advanced Energy-Saving Facilities . . . . . . . . . . . . . . . 19
Kids’ ISO 14000 Program in New York . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Keyboard Instructors Teach Fun and Satisfaction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

CSR Management
Dedicated to Socially Responsible Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Corporate Governance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Compliance and Risk Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

Casio and the Market
Technology R&D to Create Next-Generation Products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
Specific Initiatives in Technology R&D . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
Intellectual Property Initiatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Customer Satisfaction and Quality Assurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
Stable Supply of Products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
Building Strong Partnerships . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
Communication with Shareholders and Investors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36

Casio and the Global Environment
Environmental Management Vision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
Material Balance of Business Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
Initiatives to Prevent Global Warming . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
Initiatives to Comply with Environmental Laws and Regulations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
Initiatives to Reduce the Environmental Impact of Products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
Reducing Waste and Usage of Water Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
From Eco-product Design to Next-generation Eco-product Design . . . . . . . . . . . . . . . . . . . . . . . . . . 45
Environmental Accounting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
Green Procurement and Green Purchasing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
Environmentally Friendly Distribution and Packaging Materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
Environmental Communication . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50

Casio and Employees
Creating Employment Opportunities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
Appointing and Effectively Deploying Qualified Employees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
Building a Supportive Work Environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
Initiatives for Occupational Health and Safety, and for Health Management . . . . . . . . . . . . . . . . . . . . 55

Casio and Society
Social Contribution Initiatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
Communication Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58
Major social contribution initiatives, Major donations, Major awards and commendations . . . . . . 59

Company Data
Independent Opinion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60
Company Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61

Symbols used in this publication
Reference material available

See related website

This symbol indicates that detailed information and data that
could not be included in this report is available online at the“Corporate Report 2007 Reference Material” website.
http://world.casio.com/env/report/2007.html

This symbol appears whenaddresses of other websites
containing information related tothis report are provided.

Casio Corporate Report 200701

Message from the President on Casio’s Social Responsibility

Creating something where there was nothing before.
At Casio, we call that going from “0” to “1,” and we’vebeen doing it since the beginning. In fact, that’s theessence of our unchanging corporate creed, “Creativity
and Contribution”—and our commitment to further
progress for the world.

Casio’s 50th Anniversary
It all started when we said to ourselves, “Let’sbuild our own calculator—one that can do things
that people only dream of now.” Back then, theworld’s calculators were all mechanical; they
actually used gears to crunch the numbers. So
my brothers and I set out to create a device that
could perform calculations using only electricalcircuits. It took seven years, but at last the world
had its first small, fully electric calculator—wecalled it the 14-A—and Casio Computer Co.,
Ltd., was born.
That was exactly half a century ago, June of1957. By the end of our very first fiscal year, we
had sold 19 of our 14-A calculators, andrecorded sales of 5.7 million yen.
Ever since, Casio has endeavored to create
products that meet universal needs, true to our
corporate creed of “Creativity and Contribution.”
This creed expresses the heart of what Casio
does: we identify latent needs that no one else
has recognized, and then apply our creativity toprovide products and services that feel sofamiliar it’s as if they had always existed. It is
not a surprise then, that many of Casio’s
products have been world-firsts or global
bestsellers. And our quest to develop one-of-akind products continues, motivated by a genuine
desire to inspire new lifestyles and contribute toculture around the world.
We have seen dramatic growth in our first 50
years. Casio sells more than 100 million product02

Casio Corporate Report 2007

units annually in 140 countries around the world.
In fiscal 2007, consolidated net sales reached620.7 billion yen, and operating income hit 48.0
billion yen—setting record highs.
The credit for these outstanding results goesto all of our stakeholders: all the customers wholove Casio products; the shareholders andinvestors who believe in Casio’s business andfuture potential; the people at the suppliers andretailers who provide production and sales
support; our own employees who develop andsend our products off to market; and the manyothers that have helped Casio to become what it
is today. Let me take this opportunity to express
my heartfelt appreciation to everyone.

The Next 50 Years
Given the successes of the last half century, inthe next 50 years my hope is that Casio willcontinue to provide joy and wonder to people
everywhere, while making a real difference inthe world. I also recognize that, to earn a placein the sustainable global community of the
future, Casio must meet ever-greater social
expectations and public needs around the world,
while also ensuring that corporate value
continues to increase. Put simply, Casio must
aim to be a company that is literally
indispensable to human society. To achieve thisgoal, we are building a rock-solid managementfoundation that delivers steadfast execution of
the following commitments.

■ To continue realizing the unchanging,foundational principles of Creativity andContribution, Casio will adhere to theCharter of Creativity for Casio and Casio
Common Commitment.
■ By embodying its corporate creed, Casio willkeep evolving and contributing to society
through innovative manufacturing.
■ To ensure compliance with all laws andregulations, Casio will construct an efficient,rational system of internal controls, improve
management transparency, and strive toincrease corporate value.
■ Casio will be sensitive to the needs ofsocieties around the world, incorporate theseneeds in the daily conduct of its business,and engage in various initiatives to help solve
global problems and social issues through its
core business activities.
■ Casio will pursue environmental innovations
in various aspects of its business activities,
helping to build a sustainable global
community.
■ Casio will improve interaction and communication with all stakeholders to ensure evengreater management transparency.

Kazuo Kashio
President & CEO

I believe that this kind of CSR-driven
management holds the key to the future, and I
pledge Casio’s best efforts to achieve continued
dramatic growth and improve the sustainabilityof the global community.

Casio Corporate Report 2007

03

History of Casio

Business Activities

CSR Activities

1957

Commercial production of the world’s
first small, fully electric calculator starts.
Casio Computer Co., Ltd., founded.

1964
Casio releases 001, its first transistor-based electronic desktop calculator.

1965

Export of electronic desktop calculators to overseas markets begins.

1966

Casio stock listed on the second section of theTokyo Stock Exchange.

1967

Zero defect campaign launched to promote “Casio known for quality.”

1969

Casio Labor Union formed, with the basic credo of “Trust Each Other,
Understand Each Other.”

1970
1971

Casio Mini

Casio Mini, the world’s first personal electronic
calculator, released.
Casio stock transferred to the first section of
the Tokyo Stock Exchange.

1972

Casio enters timepiece market with the releaseof Casiotron, a digital wristwatch.

1974

Electronic cash register released.

1976
1977

Casiotron

Casio Tone

Production of liquid crystal panels
for watches begins.

1978∑-S8700 series of Japanese-language
office computers released.

1979

Casio Tone electronic keyboards released.

1980

TR-2000, Casio’s first electronic
dictionary, released.
SL-801 solar-powered electronic
calculator released.

1981

G-SHOCK04

Casio Corporate Report 2007

Casio Eight Club established to promoteamicable relationship with office supply
wholesalers throughout Japan.

Casio Eight Club

Casio receives Prime Minister’sCommendation for its contributions to
the progress of calculators.

Certificate of commendation

First CASIO WORLD OPEN GOLF
TOURNAMENT held.
The first CASIO WORLD OPEN

Dedicated office, the Consumer Section,
established to receive inquiries fromgeneral consumers.

1982

TR-2000

Qualification program based on meritocracy adopted. Education andtraining system established.

First G-SHOCK shock-resistantwristwatch released.
TV-10 pocket-sized LCD color TV released.

1983

First LCD shutter page printer released.

1984

PELA super-thin digital watch released.

1985

Casio Science Promotion Foundation
established.

Casio Science Promotion
Foundation

1986

Company-wide Quality Improvement
Campaign launched.

Company-wide Quality
Improvement Campaign

Business Activities

CSR Activities
1989

Consumer Section renamed to Customer Service Office, and set up in eachregion of Japan.

Name Land label printer released.

1991

Casio Environmental Conservation Committee established.

BP-100, a wristwatch-type blood pressure
monitor, released.

1992
1993
1995

DQD-10 radio-controlled clock released.

1996

Casio Environmental Charter and Casio Voluntary Plan for the Environment
adopted.
Use of specified CFCs and 1, 1, 1-trichloroethane discontinued.

World’s first watch equipped with GPS function released.

1999“Clean & Green 21” Initiative, a Casio Group-wide environmental action
plan, introduced.
Green Procurement Guidelines established.
Program launched to recover tape cartridges from label printer products
sold to corporate customers.
Corporate officer system adopted.
Environmental Report 1999 published.
Casio participates in Eco-products 1999 exhibition.

C303CA, a shock- and water-resistant, cdmaOne-compatible
cellular phone, released.
VeriPat TM, a fingerprint verification algorithm, developed.

2000

ISO14001 certification now acquired at all manufacturing sites in Japanand four sites of Casio Computer Co., Ltd.

WVA-300D/300K solar-powered radiocontrolled watch released.

2001

Casio Green Products 30 (C.G.P.30) campaign launched.
Recycling of secondary (rechargeable) batteries initiated.

R&D success achieved on small, highperformance fuel cells for mobile devices.
KDDI releases first au camera-equipped
cellular phone with GPS, made by Casio.
EXILIM, then the world’s thinnest, wearable
card-sized digital camera, released.

2002

Three Casio sites (the headquarters and Ichinomiya factory of Kofu Casio
and Yamanashi facility of Casio Micronics achieve zero emissions (lessthan 1% waste disposed in landfills).
Program launched to recover and recycle end-of-life personal computersand other information processing equipment sold to corporate customers.
Kochi Casio awarded the Natural Resources and Energy Agency DirectorGeneral’s Commendation for Excellence in Energy Management at a
Factory (in the electricity sector).

Fingerprint verification device for mobile
devices developed.
Casio enters the data projector market.

2003

Charter of Creativity for Casio established.
Casio Code of Conduct revised.
Casio Common Commitment established.
Recovery of end-of-life home personal computers initiated.

Casio Hitachi Mobile Communications Co., Ltd., a joint venture with
Hitachi, Ltd., for developing cellular phones, established.

2004

CSR Operations Section and CSR Committee established.
Sustainability Report 2004 issued, replacing the Environmental Report.

Casio collaborates with Renesas Technology Corp. on semiconductor
device packaging technology.
Casio forms alliance in LCDs with Taiwan’s HannStar Display Corp.
OCEANUS five-motor chronograph watch released.

2005

Corporate Social Responsibility Report 2005 issued, replacing the
Sustainability Report.
Casio Computer Co., Ltd., and Casio Lease Corporation obtain Privacy
Mark certification.
Improvements completed on all products destined for Europe incompliance with the RoHS Directive.

Casio ships 1 billionth calculator.

2006

Corporate Report 2006 issued, replacing both the Corporate Social
Responsibility Report and Corporate Profile.

GPS cellular phone withbuilt-in camera for au

Casio and Society

Casio Korea acquires ISO14001 certification.
Casio Code of Conduct established.

Casio and Employees

1998

Casio andthe Global Environment

Casio Group’s environmental activities published on Casio Website.
Yamagata Casio acquires ISO14001 certification.

Casio and the Market

1997

CSR Management

QV-10, a digital camera with an LCD
monitor, released.

CSR Highlights

ADPS R1, an office information processing device that requires no user
program, released.

QV-10

Corporate Profile

Contributing to Society: A History of Innovative Product
Craftsmanship and Strong Stakeholder Relationships

EXILIM

Company Data

Casio Corporate Report 200705

Product
Development

From “0” to “1”—Contributing to Society by Creating
Something from Nothing
To make something totally new, where there was nothing before... this is the simplest way to express the goal of Casio’s creativity. By
introducing revolutionary products that the world has never seen before, Casio aims to increase the convenience of work and everyday
activities, and also to generate new cultural phenomena. This in turn produces new demand, and contributes to the success of peripheralindustries. When Casio creates something where there was nothing before, more people can enjoy an affluent lifestyle. Inspired by thismission, Casio has become exceptionally skilled in both the concept phase and practical technological application: innovative ideas andthe advanced technological capabilities it takes to realize them.

●From Great Ideas to Innovative Products
Identifying Universal Needs
Casio constantly strives to identify unrecognized universal needs. The
number of things that all people need, but which are yet to be created, ispotentially infinite. This vast latent demand is what drives Casio’s quest to
discover universal needs. Casio’s role as a manufacturer is to uncover theseneeds and then apply its technological expertise to create new products thatmeet them.
Vastly popular
digital camera

Thinking outside the Box

Water andshock-resistant
G-SHOCK watch

Casio prizes originality in its product development. Only by producing
innovative ideas—with zero dependence on product ideas from othercompanies—can Casio deliver products that truly satisfy customers. The
company’s product development starts with a search for new ideas that noone has ever had—concepts without precedent. Casio’s idealistic approachdemands a complete departure from conventional thinking.

Taking the User’s Perspective
Casio insists on thinking like its customers do. Everything starts withcareful consideration of who will use the product—how, where, and when.
This ensures that Casio’s inventions have exactly the right design,function, interface, and more: everything people really need. Casio’s
unabashed goal is to keep offering products that astonish and amaze,without ever become complacent about past successes.
Electronic dictionary
with handwriting
interface panel

Minimizing Environmental Impact

Solar-powered
radio-controlled
watch

06

Casio Corporate Report 2007

Casio offers compact, lightweight, slim, and energy efficient products.
By packing advanced functionality into each compact device, Casio
not only provides convenience, but also saves resources and energy.
Starting with the initial product concept phase, the company’s
developers make an all-out effort to minimize the environmental
impact of each product. Environmental performance is further
improved in the design phase by integrating multiple functions into
single components and reducing the overall number of components.

Corporate Profile●Making Ideas into Reality through Innovative Technology
The Brains behind Performance and Function:
LSI System Design Technology

CSR Highlights

What is the secret of making devices and their various functions run faster,but on less energy? The LSI—the central engine of a digital device which
determines functions, performance, energy-saving features, and evenshape. Casio’s most central technological strength is in LSI system design.
Casio leverages the numerical calculation technology, text processing
techniques, and energy-saving algorithms it has been developing since thebeginning—as well as its more recent image and sound processing,communication and broadcast algorithms and architecture—to provide
superior functionality and performance in an optimal design.

Image processing
LSI:
EXILIM Engine 2.0

CSR Management

Superior Functionality in a Compact Package: HighDensity Mounting Technology
Casio combines the best of its proprietary technologies to produce pocketsized products with advanced functions that enhance the lifestyles ofcustomers. Among these are flexible Chip on Film that enables unrestrictedcircuit layout, BUMP technology that connects LSI to boards with micron-unit
precision, and WLP that makes LSI even smaller.

Casio and the Market

Clearer, More Beautiful Images:
Display Technology

Casio andthe Global Environment

Casio develops and produces the small and medium-size TFT LCDs thatare indispensable for displaying information on mobile devices. Given the
superior clarity and brightness of Casio LCDs, the company uses them in its
own products, and also provides them for digital cameras and cellular
phones made by other companies.

Casio and Employees

Superior Reliability:
Water and Shock-resistant Technologies
The G-SHOCK wristwatch highlights Casio’s water and shockresistant technologies. Casio also applies these technologies inother products, such as cellular phones that can be used in thebath, and electronic dictionaries that can survive all the rigors ofschool life. Casio’s reliable technologies provide reassurance
to users.

Casio and Society

Speed, Dependability, and Flexibility:
Production Technology

Company Data

Casio is also making the most of digital technology in its production facilities.
From 3D design to prototype building, mold manufacturing, and mass
production, Casio now creates products without relying on any paper
blueprints, thanks to its advanced production data networks. These systems
have greatly reduced processing time from production start to finish, andthey enable outstanding flexibility for changes at any point in the process.

Casio Corporate Report 200707

Management
Strategy

Building a Foundation for Continual Growth
Delivering great products to consumers, reliable returns to shareholders, and successful business partnership to suppliers—Casio’s
approach to securing continual growth is to benefit all of its stakeholders.

●Management Focused on Profitability
Casio is committed to providing the maximum return on society’s investment,
which is represented by the capital entrusted to it by shareholders. Toward thisend, the company’s key management indicator is profitability. Casio is taking
bold steps group-wide to improve its operating income margin.

Net sales

Operating income margin(¥ million)

(%)
9.0

700,000

620,769
600,000

523,528500,000

559,006

8.0

580,309

7.0

7.4

7.7

7.0

440,567

6.0

400,000

5.0

300,000

4.0

5.3
4.1

3.0

200,000

2.0
100,000

1.0

0
FY2003

FY2004

FY2005

FY2006

FY20070.0
FY2003

FY2004

FY2005

FY2006

FY2007●Achieving both Stability and Growth
Casio has positioned businesses thathave maintained high market shareand yield steady profits as Stable
Businesses. It has positioned
businesses that are expected toexperience significant global market
growth in the future, while also seeing
intensifying competition as a large
number of companies enter themarket, as Expansive Businesses.
Casio is following a successful
strategy of securing stable profits fromthe Stable Businesses while
increasing both sales and operating
income in Expansive Businesses. Thisapproach to management has been
securing both growth and profitability,
and is expected to continue to deliver
superior sustainable results.

08

Casio Corporate Report 2007

StableBusinesses

Expansive
Businesses

Electronic calculators,
electronic dictionaries, timepieces,
electronic musical instruments,
system equipment

Digital cameras, cellular phones,
TFT LCDs

Fiscal 2007
Sales: 264.3 billion yen(up 0.8% year-on-year)
Operating income margin: 13.0%

Fiscal 2007
Sales: 356.5 billion yen(up 12.0% year-on-year)
Operating income margin: 5.3%

Digital Cameras

Corporate Profile●Performance of Main Products
Number of digital cameras sold(million units)

7.0

Units sold in fiscal 2007: 6 million

6.0

6.0

4.6

5.0

3.7

4.0
3.0

2.8

2.0
1.0
0

FY2004

FY2005

FY2006

CSR Highlights

As the creator of the digital camera market, Casio
continues to leverage its technologies to delivercompact, slim designs, and leads the market forstylish, compact products.

FY2007

Number of radio-controlled
watches soldRadio-controlled Timepieces(million units)

Worldwide market share: No. 1 (Casio survey)

3.0
2.5
2.0
1.5

2.5

FY2006

FY2007

CSR Management

In 2006, Casio sold 33 million timepieces
worldwide. In recent years, Casio has focused onradio-controlled timepieces, which never need to be
adjusted by hand. These products now account for
45% of the value of Casio’s timepiece sales. Casio
also possesses the largest share of the global
market for radio-controlled timepieces.

2.4
2.0
1.5

1.0
0.5
0
FY2004

FY2005

Casio and the Market

G-SHOCK
Number of units sold to date: over 60 million
The water and shock-resistant G-SHOCK watch is the epitome of
Casio’s tough device construction. Since the G-SHOCK’s debut
in 1983, Casio has sold over 60 million units in over 100
countries, a feat unheard of for a single wristwatch brand. In
2007, special Dawn Black models were introduced tocommemorate G-SHOCK’s 25th anniversary.

Electronic Calculators

Customer satisfaction
ranking: No. 1 for two
consecutive years

Total number of units
sold to date: 1 billion

Casio andthe Global Environment

Cellular Phones

Market share in Japan: No. 1*

Market share in Japan: No. 1*

Casio offers a full line of electronic
dictionaries that meet a range ofneeds for students and working
professionals. Advanced features,such as handwriting recognition
and recorded pronunciations by
native speakers, explain why
Casio dominates this market in
Japan with an over 50% share.

Casio has the largest shareof the electronic piano
market in Japan, and is
known for electronic pianos
that offer superior
performance features suchas natural keyboard touchand premium sound quality.

*Market share based on quantities sold by manufacturers from January to
December 2006, according to a GfK JAPAN survey which compiled sales
results from major electronics stores throughout Japan.

*Market share based on quantities sold by manufacturers from January to
December 2006, according to a GfK JAPAN survey that compiled sales
results from major electronics stores throughout Japan.

Casio Corporate Report 2007

Company Data

Electronic Pianos

Casio and Society

Electronic Dictionaries

Casio and Employees

Source: J.D. Power Asia Pacific 2005 & 2006 Japan Mobile Telephone
Handset Satisfaction StudySM. The 2006 study was based on evaluations
from 3,187 customers who purchased a mobile phone in the preceding year.
http://www.jdpower.co.jp/jdp_e/

In December 2006, Casio shipped
its one billionth calculator, counting
from the first electronic calculator,
called the 001, introduced in 1965.
Casio calculators helped togenerate massive popular demand,
which contributed significantly to thedevelopment of the semiconductor
industry. With its development of scientific and educational
calculators, Casio is now known the world over for its
outstanding products in this field.

Casio received the top ranking for
overall satisfaction for two straightyears in the cellular phone customer
satisfaction survey conducted by
J.D. Power Asia Pacific, Inc.

09

Business
Overview

Casio’s two main businesses are electronics andelectronic components. The company creates productsthat are compact, lightweight, slim, and energy efficientfor the global market.
Business Fields
The Casio Group is comprised of Casio Computer Co., Ltd.,
52 consolidated subsidiaries, and 3 equity-method affiliates(as of March 2007). 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. The Electronic
Components and Others segment is divided into two
categories: Electronic Components, and Others. In all ofthese categories, Casio’s business activities range fromdevelopment and production to sales and service.

Sales by category(FY2007)

Others5.0%Electronic
Components
10.1%
SystemEquipment
7.8%

Consumer
36.9%

Electronic
Components
and Others

15.1%

Electronics
84.9%

Mobile Network
Solutions27.6%

Timepieces
12.6%

Electronics Segment

Timepieces
category

Consumercategory

Electronic calculators, electronic dictionaries, label
printers, digital cameras, electronic musical instruments

MobileNetwork
Solutions(MNS)
category

Digital watches, analog watches, clocks

SystemEquipment
category

Cellular phones, handy terminals

Electronic cash registers (including POS system), officecomputers, page printers, data projectors

Electronic Components and Others Segment

10

Electronic
Components
category

Otherscategory

LCDs, BUMP processing consignments, TCP assembly and test consignments, carrier tape

Factory automation, molds, etc.

Casio Corporate Report 2007

Consumer Category
Corporate Profile

GreaterConvenience,More
Enjoyment

EXILIM EX-V7
digital camera

CSR Highlights

With an optical 7x inner-zoom lens in aslim, stylish body that fits in the palm of
the hand, the EX-V7 is the high-powerzoom model in the EXILIM series. It
makes it easy for any user to takevirtually perfect pictures even at
maximum zoom range, thanks to the
CCD shift anti-shake mechanism andthe auto-tracking AF system. For movie
lovers, the camera boasts nextgeneration H.264 encoding technology.

EN-100S/EN-200S
electronic calculators
These are hyaku masu keisan (“one hundredcalculations drill”) training calculators, developedwith the assistance of Professor Hideo Kageyama
of Ritsumeikan University. By repeating each of
the basic arithmetic functions one hundred times,
children are able to strengthen their basic
calculation ability, and develop active learning
habits. With the same device, adults are able tokeep their minds sharp by exercising their graymatter with arithmetic drills.

Casio andthe Global Environment
Casio and Employees
Casio and Society

Consumer
Products

This electronic dictionary for Japanesehigh school students has a handwriting
interface panel for learning both English
and Japanese characters. It contains
native pronunciation recordings of 85,000
English words, making it very useful forstudents who want to improve both theirpronunciation and English listening skills.

Casio and the Market

Casio offers a wide arrayof products to makeeveryday life moreconvenient andenjoyable. They include
everything from
calculators for a myriadof business andeducational applications,to electronic musicalinstruments that even
beginners can easily
master. Casio has also
introduced many new
industry-leading digital
cameras and electronic
dictionaries.

CSR Management

EX-word XD-SW4800
electronic dictionary

Privia PX-800
electronic musical instrument
This affordable digital piano delivers true piano sound in a compact,
lightweight, and stylish design. From real pianists to everyday amateurs,
anyone can take advantage of the PX-110’s superior sound quality and natural
keyboard touch to practice freely in the privacy of their own location.

Company Data

Handwriting Panel
The latest feature in electronic dictionaries is a
handwriting recognition panel. By writing Japanesecharacters on the panel, users can quickly look up themeaning of even difficult characters. In addition topracticing the writing of Japanese script, students canalso practice dictation by writing English words that they
hear to improve their listening skills.

Casio Corporate Report 200711

Timepieces

Worldwide
Multi-Band 5
Compatibility
for
Solar-powered
Radio-controlled
Watches

G-SHOCK MRG-7500
This is the ultimate G-SHOCK model, featuring
even tougher wear resistance and Multi-Band 5
technology. It has five motors that drive six
hands, and boasts a plethora of display
functions including a world time zone clock andday of the week display. Beside all this, thedesign is dynamic enough for any scene.

G-SHOCK GW-9100
This model has a rust-resistant construction with alltitanium used for the exterior metal parts to protect
against the corrosive effects of seawater and ocean
breezes. With a casing that offers peak corrosion
and shock resistance, the GW-9100 has all thefunctionality and performance needed for marine
activities. It even comes with Multi-Band 5 andTough Solar technologies.

OCEANUS OCW-S1000J
The OCEANUS Manta series adds slim, sporty
styling to the lineup of full-metal case, solarpowered radio-controlled OCEANUS watches.
Even retaining the built-in chronograph andMulti-Band 5, the OCW-S1000J boasts a slim
profile of only 10.2 millimeters.

PRO TREK PRW-1300TJ
This outdoor watch incorporates three sensors
for a compass, altimeter and barometer, and athermometer, as well as Tough Solar andMulti-Band 5 technologies. The PRO TREK
PRW-1300TJ takes ease of use to a whole newlevel, with an optimal layout, a slimmer liquid
crystal display, and smaller electronic parts—all
thanks to high-density mounting technology.

Timepieces

12

Casio Corporate Report 2007

Standard radio
waves

Accessing Five Radio
Transmitters across the GlobeRadio-controlled watches receive radio waves
with time data from special radio transmitters,
and automatically adjust themselves to maintainprecise timekeeping. Even in areas where theradio waves cannot be received, they operatewith the accuracy of a regular quartz watch.
Solving the problem of different radio wave rules
in various countries, the new Multi-Band Casio
watches can now receive radio waves from fivedifferent transmitters worldwide. Casio watches
can keep perfect time almost anywhere.

Casio’s radio-controlled
watches automatically
reset themselves to thecorrect time by receiving
standard radio waves
with time data. Casio’s
Tough Solar powersystem combines a highcapacity rechargeable
battery and a small solar
panel that generates
electricity, even fromfluorescent lights. Thesewatches will keep running
as long as there is light.
Casio’s solar-powered
radio-controlled watches
are compatible with
Multi-Band 5, aworldwide system of fivetransmitters (two inJapan, and one each in
the US, UK, andGermany) that transmit
standard radio waves.

Transmitter

Radiocontrolledwatch

Mobile Network Solutions (MNS)
Corporate Profile

Anytime,Anywhere

CSR Highlights

EXILIM W53CA
cellular phone

Casio and the Market

W52CA cellular phone
This water-resistant One Seg cellular phonewith double-pivot hinge construction allows
users to enjoy calling, e-mail, and One Seg
broadcasts, even in the bath, thanks to its
superior waterproof construction. The One
Seg function delivers a high-quality picture
based on Casio’s own image compensation
technology. This phone even has a Talking
Mobile Dictionary that allows users to
confirm English pronunciation.

Casio andthe Global Environment
Casio and Employees

The aim of Casio’s
Mobile Network
Solutions strategy is toprovide an optimal usage
environment for businessand personal applications, regardless of timeor place. Casio iscontributing to thedevelopment of a truly
mobile society withsolutions focusing on
compact cellular phones
with advanced functions,and mobile terminals
for a wide range ofbusiness needs.

CSR Management

Utilizing its EXILIM digital camera technology,
Casio has produced a stylish cellular phonewith a built-in 5.1-megapixel camera. Itfeatures a convenient wide-angle lens and awidescreen VGA LCD with high resolution.
Thanks to six-axis blur reduction and highsensitivity capture capability, the camera
reduces blur caused by shaky hands andsubject movement.

DT-5200 handy terminal

Developing Advanced Products That Integrate
Casio’s Specialized Technologies

Company Data

MobileNetwork
Solution

Casio and Society

This mobile communication terminal for business use
combines the features of a handy terminal with theportability of a PDA. By operating it in combination
with Excellent Store® shop support solutions, theuser can perform everything from data transmission
to routine retail tasks with one device. The DT-5200
leverages information to increase total in-store
productivity and contributes to the standardization ofbusiness management.

Casio Hitachi Mobile Communications Co., Ltd., is Casio’s joint venture with
Hitachi, Ltd., for developing cellular phones. The jointly managed company
marries Hitachi’s core technologies such as high-speed transmission and
One Seg reception with Casio’s specialized camera, water resistance, andshock resistance technologies. The integration of these advanced
technologies has enabled quick development of well-balanced products thatdeliver superior performance.

Casio Corporate Report 2007

13

System Equipment

Page PrinterSPEEDIA N3500

Reliability
Delivers
Efficiency

This compact printer offers highresolution printing using superfine toner at the high speed of 24
color pages or 30 monochrome
pages per minute. It provides
print security functions such asindividual authenticated printing.
At the same time, a complete
recovery system for tonercartridges reduces
environmental impact andprinting costs.

TE-300cash register
The TE-300 is a cash register thatfits well with the interior design ofa store by enabling the cash
drawer to be placed in a separate
location from the slim andcompact letter-sized main unit. It
also features an antimicrobial
treated keypad for use in medical
and restaurant settings.

Casio provides original
solutions for all kinds ofbusinesses, integrating
hardware and software.
Casio makes page
printers for all manner ofcolor documents, cash
registers for a wide
variety of retail formats,and data projectors, andalso offers the ADPS
Personnel System tosupport corporate humanresource strategies.
Casio has earned thepraise and trust of
business professionals
worldwide.

XJ-S46 data projector
Thanks to Casio’s efforts to dramatically reduce the size of the
projection lens and light source, the XJ-S46 data projector
realizes a slim profile of just 43 millimeters (32 mm at thethinnest point). With a wide-angle 2x zoom lens and the ability toshow presentations without a PC, this data projector delivers
both superior mobility and performance.

Realizing a Substantially Slimmer Profile with aCompact, High-efficiency Light Source
A compact, high-efficiency light source, which employs an aspherical surface
reflector and a new form of condenser lens, delivers a substantially slimmer
profile while still enhancing the performance of the light source lamp. The
high static pressure fan located in the center of the body and exhaust heatpipe enable high-efficiency cooling in a compact unit.

14

Casio Corporate Report 2007

Improved light alignment enables

XJ-S46 light source a more compact projection lens.
New reflector
26.2mmConventional
light source

48mm

High-efficiency compact light source

Originaltechnology

Original light source technology fora super-slim profile

New condenser lens

SystemEquipmentElectronic Components and Others
Corporate Profile

Creating the
Cutting Edge

TFT LCD Modules

CSR Highlights

Hyper Amorphous Silicon TFT(HAST) is Casio’s original superfine
LCD technology. Able to produce
vivid photographic images using
amorphous silicon, HAST is basedon COG technology and thedevelopment of low resistancecircuits and a high-aperture ratio for
TFT arrays, multipin-slim LSI andother technologies. The clarity of
the images it produces has madeCasio’s HAST technology a favorite
for application in cellular phones,
digital cameras, GPS products,
and a wide variety of othermobile devices.

CSR Management

COF

BUMP

Casio andthe Global Environment

BUMP is a technology that forms
microelectrodes for LSI chips, enablinghigh-density packaging. Using gold or othersolder, protruding electrodes are formed onan LSI wafer terminal. Along with theincreasingly advanced functions of LSI,
even greater development is expected in
the area of micro-processing technology.

Casio and Employees

WLP(Wafer Level Package)
WLP refers to the creation of chip-sizedpackages right on a silicon wafer throughcopper redistribution formation, electrode post
formation and resin sealing. WLP is costeffective, and it is the most advanced LSI
miniaturization technology, making it possible
to produce even smaller, higher-function
devices such as cellular phones.

Casio and Society

Casio Micronics Co., Ltd.
Realizing Better Micro-processing
at a New Plant

Company Data

Electronic
Components& Others

COF refers to a film on which LSI chips for
LCD panels are mounted. The film is thinnerand more flexible than a conventional board,
making it possible to design larger LCD
panels. Because the circuits are fixed in thebase film, COF is ideal for detailed
processing. As the trend toward ultra-finepitch LSI grows, so too does the demand for
COF technology.

Casio and the Market

Cutting-edge products
are born of the latest
advances in electronic
components. Take for
instance the LCD panel,
an indispensableinterface between man
and machine, where
Casio specializes insmall- and mediumsized LCDs for mobile
devices, including TN,
STN, and TFT panels. In
another advanced field,
Casio Micronics
conducts bumpprocessing, as well as
COF and otherpackaging operations.
Casio’s electronic
components are hard atwork in applications
across the industrial
spectrum.

Casio Micronics has completed its new plant at the
Yamanashi Factory. The new facility has the ability
to create even finer circuitry than conventional Chipon Film (COF), and has made it possible for thecompany to supply optimal control circuits for
products such as high-definition LCD TVs for theJapanese Hi-Vision format.

Casio Corporate Report 2007

15

CSR Activity Report
Helping to Build More Sustainable Societies
Casio’s greatest responsibility to the world is to deliver
another half century of Creativity and Contribution.
This goal guides all of Casio’s efforts to realizebalanced progress that is good for individual people,
their communities, and the environment.

Customers
Shareholders
and investors

Employees

Suppliers

Casio Group

Global environment

Local
communities

●CSR Highlights

At Casio, CSR Starts
with R&D■ R&D focused on earning trust■ New image processing technology
Casio’s image processing technology is at
the core of its digital camera production.
Casio’s digital technologies—which users ofconventional film cameras could never havedreamed of—have not only made cameras
easier to use, but also created many new
ways to use them. To name just a few, Casio
has cutting-edge technologies forcompression, editing, and image detectionthat work with both still images and movies.

Digitizing album photos with Revive Shot

● Creating technologies and thentransferring them to new fields
One of the keys to the originality of Casio’s
products, such as its timepieces andmusical instruments, is the company’s set of
powerful technologies for digitizing
numbers, time, music, text, and images.
Casio first developed image processing
technologies for its cameras, and thenhelped to make them a standard function ofcellular phones. By adding image
processing technology and camera features
to an everyday device like a phone, which
had always been seen as single-function,
Casio’s digitization of still images andmovies has provided completely new formsof value, and even created whole newdevice categories.

Casio and Society● Making photography easier than everConventional cameras required all sorts ofeffort to master the various techniques
needed to avoid problems such as bad
focus, shaky hands, and dark faces inphotos when there was bright light behindthe subject.
Casio has applied its proprietary image
detection technology to develop a host of
useful functions such as an auto-tracking
Auto Focus (AF) system that automaticallyfocuses on a subject and then keeps it infocus even if it moves. Another is Auto
Framing, which tracks a moving subject to● Enabling innovative new applications
One reason that the camera has become soimportant to people is that it is an optimal
tool for capturing special events andmemories. But image processing technology
has evolved beyond the role of recording
only everyday moments of beauty andwonder. Its benefits are now being utilized inbusiness and other settings, in combination
with communication technologies, tofacilitate image transmission, information
gathering, and edit processing. Casio R&D
has made major contributions to theadvance of image processing technology,
creating many new and valuable functions
for the camera, and improving both thequality and efficiency of user performance.

Casio and Employees

The key to building trust is improving
customer confidence and satisfaction. Casio
R&D works at this by interacting with
consumers, asking them to help identify
aspects of products that may have caused
the slightest dissatisfaction or discomfort,
and then resolving these issues bydeveloping better functions and services. In
essence, Casio R&D is the unending quest
to make more reliable products that
represent exactly what consumers want andsociety needs. This quest is the key to CSR
at Casio.

Casio’s commitment to delivering highquality products that conserve resources
and save energy is the same everywhere in
the world. This is why Casio products havedemonstrated their universal value in manydifferent cultures, nations, and languages.
Today, the natural extension of Casio’s R&D
tradition is the development of advanced
sustainable technologies. This effort is at theheart of Casio’s drive to offer the world
environmentally friendly products that inspire
new cultural phenomena. Simply put, this is
how Casio sees its mission as a manufacturer. One of Casio’s leading sustainable
technologies is its image processing
technology, which is featured here.

ensure it will appear in the center of thephotograph. Casio’s digital cameras also
feature blur reduction technologies, as wellas the unique Business Shot and Revive
Shot functions. Casio’s revolutionary image
detection and blur compensation
technologies have made high-quality
photography accessible to everyone.

Casio andthe Global Environment

The work of Casio’s R&D departments
energizes Casio as a whole by improving
corporate and brand strength to secure andmaintain competitive superiority andsustainability for the company. Externally,
R&D efforts also aim to secure and increase
public trust and confidence in Casio throughproduct and technology development.

Developing Sustainable
Technologies

Casio and the Market■ R&D supports corporate strengthand consumer confidence

The image is automaticallystraightened out

CSR Management

Everyone in research and development at
Casio understands that R&D is the source of
Casio’s ability to fulfill its social
responsibilities. The devotion of Casio
researchers to CSR is reflected in thefollowing statements from the Charter ofCreativity for Casio: “We will value creativity,and ensure that our products meet universal
needs,” and “We will strive to be of service
to society, providing customers with delight,
happiness, and pleasure.”

Business Shot feature

CSR Highlights

Casio does its utmost to leverage its corecompetencies to help build sustainable societies.
Where can Casio R&D make an entirely uniquecontribution? One answer is in the area of digital
image processing technology, where Casio
possesses industry-leading expertise.

Corporate Profile

Image Processing Technology Creates New Value

Auto-tracking AF andAuto Framing

Employee PrideCompany Data

Outline detection
Frontal-viewalignment correction
Discoloration correction

Take a photo of analbum page, andRevive Shot
automaticallyrecognizes the outlineof the photo subject,adjusting theperspective to a full
frontal view. It also
revives faded older
photographs.

In our R&D organization, we don’t limit ourselves to
product-by-product development. Rather, we try tocreate whole new uses for our technologies. The
fascinating thing about our image processing workis that it impacts Casio’s digital cameras, cellular
phones, handy terminals,
and all kinds of otherimaging applications inindustries from plant
automation to automobiles.

Tetsuji Makino
Development Department-2
Development Center

Casio Corporate Report 200717

●CSR Highlights“No.1 Mobile Telephone Handset in Customer
Satisfaction, Two Years in a Row”
The Casio cellular phones produced forJapanese mobile communications
provider, au, have been ranked top in
customer satisfaction for two years in a
row according to a consumer survey
conducted by an independent organization. In 2007, Casio is working to further
improve all aspects of satisfaction withthe phones, aiming to achieve evenhigher scores.
Makoto Igarashi (right), General Manager, Mobile Communication
Products Department, receives a trophy from Namio Hasumi,
then-President and CEO, J.D. Power Asia Pacific, Inc.

No. 1 for Two Consecutive Yearsin the Japan Mobile Telephone
Handset Satisfaction Study
In J.D. Power Asia Pacific’s 2006 Japan
Mobile Telephone Handset Satisfaction
Study, the Casio cellular phones (produced
for au) earned first place for the second year
in a row. J.D. Power Asia Pacific is aninternational organization specializing incustomer satisfaction research.
The study measures overall customer
satisfaction with cellular phone handsets.
The 2006 study was based on evaluations
from 3,187 users during the first 12 monthsof ownership.
In the study, overall satisfaction ratings
are calculated based on eight distinct
factors, such as battery, operability, e-mail,and camera. Casio received the highest
overall ranking of any of the 11 companies
covered by the study.

656 points

Industry
average

603 points

500

550

600

650

700

Factors comprising overall satisfaction
Display 4%

Internet 2%

Camera 5%
E-mail 7%

Design/size

35%

Operability
11%
Quality
18%

Battery

18%

Source: J.D. Power Asia Pacific 2005 – 2006 Japan
Mobile Telephone Handset Satisfaction StudiesSM.
The 2006 study was based on a total of 3,187
responses from mobile phone users during the first
12 months of ownership.
http://www.jdpower.co.jp/jdp_e/

18

Casio Corporate Report 2007

W41CA

W42CA
W43CA

Taking Customer Satisfaction
to All New Highs

Overall ranking of mobile telephonehandset customer satisfaction(Maximum 1000 points)
Casio

2006 Models“Cellular phones are already one of the mostfamiliar daily necessities for people in andoutside Japan. Of course, the competition
between manufacturers is intense, with new
products coming out practically every day.
This makes it all the more significant that
Casio has secured the top customer
satisfaction ranking for two years in a row,
winning the support of a broad rangeof customers.
With the popularization of mobile phones
compatible with One Seg broadcasting, it islikely that the competition will continue toheat up in 2007. This only motivates us tokeep achieving high satisfaction ratings, andI believe we will, thanks to the teamwork
between the developers at Casio Hitachi
Mobile Communications and the sales force
at the Mobile Communication Products
Department.”

EmployeePride
I’m proud to havecontributed thecontent for this page.

Kensuke Takagi
Mobile Communication
Products Department

New 2007 Models
W51CA

W52CA

W53CA

●CSR Highlights

2

CSR Highlights

The daily improvement program at this laboratory adds to improved hardware performanceto achieve industry-leading energy performance. Casio is striving to save even moreenergy by repeating the cycle of improvement,
operation, results, verification, and evaluation.

Corporate Profile

Improving Performance at a Laboratory with
Advanced Energy-Saving Facilities

1

CSR Management

1. Dining room and rooftop green
3
space (7F)
2. High-efficiency thermal storage tanks(yellow structure inside building)
3. Hachioji R&D Center● Reduction effect
The reduction effect as of fiscal 2007 was a
CO2 emissions reduction of 17.9% (597 tons).
Daily data management“The city of Tokyo and the Energy
Conservation Technology Study Group gave
their approval to our initiatives, which involve
continual small daily improvements rather
than energy-saving measures that rely on
installing new hardware. As a result, theHachioji R&D Center was put forward as amodel office. Fiscal 2008 is the interim
reporting year for formal evaluation of theresults of our plan. We are working hard withthe aim of achieving the highest evaluation.”

EmployeePride
It was a fulfilling
experience for me toplan what to include
on this page.

Kiyoshi Kazama
Manager
General Affairs Division
Hachioji R&D CenterTwo years prior,previous year,
and fiscal 2006

•Electricity•Natural gas•CO2•Petroleum
conversion

Daily operations(Operational improvement
activities)

Casio and Society● Energy-saving initiatives and results
In the year after the building was completed,an energy-saving study team met every
month to ascertain, verify, and then apply
data on energy performance. In that firstyear, the lab achieved a 33% decline inenergy consumption in terms of equivalent
CO2 emissions and a 38% reduction in
actual electrical usage, far exceeding theinitial target of 20% energy savings.
This is how Casio’s new energy-saving
laboratory earned the highest ranking underJapan’s Comprehensive Assessment System
for Building Environmental Efficiency(CASBEE).

● Steps being taken to reduce emissions
Daily cuts are reflected in monthly reduction
figures, which ultimately lead to lower annual
emissions. Casio has a daily improvement
mindset when it comes to continuous
improvement. A few of the steps being
taken are:1. Setting all thermostats at 28°C in thesummer (Cool Biz program)
2. Installing sensor lighting for outdoor
parking lots
3. Reducing power used for air-conditioning
through longer use of natural ventilation
4. Reducing fan use through semi-automatic
air conditioning operations on each floor
5. Turning off excess lighting indoors and out
Over ten such measures have been
implemented.

Casio and Employees● Main energy-saving measures
1. Achieving stable electricity usage overtime through high-efficiency thermal
storage tanks
2. Reducing need for air-conditioning with anatural ventilation system
3. Lowering wasted electricity using
automated lighting controls
4. Implementing air-conditioning plans
based on weather forecast data

Casio has submitted a plan to cut CO2
emissions by 10.4% (347 tons) by fiscal 2010
(compared to fiscal 2005), and is now
working to achieve this goal.

Casio andthe Global Environment

Designed and constructed as anenvironmentally friendly energy-savingbuilding in compliance with the Casio
Environment Charter and the Casio
Fundamental Environmental Policies, theHachioji R&D Center was completed in
November 2003.
In the design phase, building operations
were simulated in a variety of tests of potential energy-saving measures. The target was
to achieve a 20% reduction in energy use
compared to the existing building.

Casio Participates in the Tokyo
Global Warming Alleviation Plan

Casio and the Market

Cutting-edge Laboratory
Saves Energy•Same month, same day•Cumulative total:
Daily comparison confirmation
Looking for energysaving methods•Verification on theoperation side
Information

Company Data

Interior
comfort level

Adjusting energysaving effect•Announcement by meeting ofenergy-saving study team,then establishment• Hachioji R&D Center (photos)• Milestones of the Energy-saving
Program at the Casio Hachioji
R&D Center• CO2 Reduction• CO2 Reduction Effect, by Floor Space• Power Consumption Savings
per Square Meter
Casio Corporate Report 200719

●CSR Highlights

Kids’ ISO 14000 Program in New YorkAt the Consumer Electronics Show (CES) 2007 held in Las Vegas in January 2007, Casio America, Inc.,
announced its sponsorship of a new Kids’ ISO 14000 program to be introduced in New York.

Kids’ ISO 14000 Program
Kids’ ISO 14000 is a program designed toeducate children about environmental
issues. It also encourages them to havehope and confidence in the future, by
helping each one of them to improve theirability to resolve problems and pursue ameaningful life.
As one method of addressing global
environmental issues, the children are taught
about environmental management, and they
form youth networks that work together onenvironment themes.
The Kids’ ISO 14000 program originatedin Japan in 2000. The program began tospread to places around the world like
Australia, South Korea, the Middle East, andEurope in 2004 with the support of theUnited Nations University, the United Nations
Environment Programme, and the International Organization for Standardization(ISO). In 2006 the program became part of
the Decade of Education for Sustainable
Development project sponsored by the UN.

CES 2007
From the sponsorshipannouncement“We are delighted at the generous
assistance Casio will be providing. It isvery encouraging to have the support ofone of the world’s top electronics
manufacturers in our efforts to care forthe environment.”

Takaya Kawabe
Visiting Professor, United Nations University
Director General, International Art and Technology
Cooperation Organization (ArTech), Japan

Initiatives by Casio America, Inc.
The Kids’ ISO 14000 program will belaunched in New York in 2007. With this,Casio America will become the program’s
first sponsor in the US. Since the basic
activities of the program include reducing
CO2 emissions by saving electricity in thehome, the children in the program will needcalculation skills. In addition to providing
technical support as the top manufacturer ofcalculators, Casio America and its
employees will help with the preparation ofprogram textbooks, and provide assistancefor the kick-off program.
Going forward, employees of Casio
America will obtain Kids’ ISO 14000
instructor qualifications, and help to
popularize the program. They will also be
actively involved in awareness-raising
activities. The company will also encourage
its US and Japanese partner companies toparticipate in the program.

Kids’ ISO 14000 Program showcasedat CES 2007 booth
Program explained
to the media“I am very proud of our sponsorship of
the New York project. Creativity andContribution is the Casio corporate
creed, and through this program, we
hope to contribute to environmental
conservation in the US.”

Hideaki Terada
Chairman & CEO, Casio America, Inc.

Employee Pride
We have been working to contribute to the local community for many years, andconsidering how Casio’s products can help the environment. I believe our recent
sponsorship of the Kids’ ISO 14000 program is a good step toward making theworld a better place.

John Homlish
Executive Vice President, Casio America, Inc.

20

Casio Corporate Report 2007

●CSR Highlights
Corporate Profile

Keyboard Instructors Teach Fun and Satisfaction

CSR Highlights

The Casio Music Circle
supports many keyboard
teachers, and is contributing tomusic culture through electronic
instruments.
CTK-900 model isrecommended by CMC

Casio Music Center website (in Japanese)
http://casio.jp/emi/cmc/
CMC’s own teaching materials

CSR Management

2006 CMC Festival

CMC Activities

The joy of playing a song for the first time,even if the tune is simple and theperformance is rough, is so great that it
cannot be expressed in words.

Creating the content
for this page was areal privilege.

Yoko Honda
Consumer Planning
Department
Domestic Sales andMarketing Division

Classes are offered by CMC instructors
across Japan. Currently there are about 250
teachers and 1,500 students, with classes inculture centers like this one, and private
lessons as well.
It is really great to know that the numberof Casio fans has increased thanks to theefforts of CMC teachers like Ms. Watanabe.”

Casio and Society
Company Data

”Duringcherryblossom
season I
visited aneasy
keyboard
class formiddle aged and older people wherestudents use the Casiotone keyboard. It washeld at the Hachioji Classroom of the NHK
Culture Center.
The instructor, Naomi Watanabe, teaches
two classes of six students each, but since
this course is so popular, there are always
several people waiting for openings in theempty seats.
During the 75-minute lesson, Ms.
Watanabe uses a flexible teaching style thatallows her to teach students of varying levels.
Sometimes she works with students
individually, other times she gets them to singa piece together, but in all of it, she gives

them a knack for playing the
keyboard.
‘This spring marks a year
since the course began,’
remarked Ms. Watanabe,‘and everyone has improved
so much that they can no
Ms. Watanabe
longer be called beginners.’
She went on to explain: ‘They have a goodtime talking with each other, encouraging
each other and filling theroom with laughter. As a
CMC instructor I feel happy
and very motivated when I
see their enthusiastic faces.’
One of the students, Ms.
Amano, commented, ‘I have
Ms. Amano
wanted to learn how to play
the keyboard for a long time. Ms. Watanabe
has a wonderful personality and teachingstyle, and the other people in the class are
great too. It really is a lot of fun every time.’
Every one of the students conveyed thesentiment that the class is helping them toenjoy their later years.

Employee Pride

Casio and Employees

Classroom Visit

November 2006 in the Science Hall of the Science
Museum, Tokyo

Casio andthe Global Environment■ 2006 CMC Festival

While the pupils vary from small children
to university students, office workers,
housewives, and senior citizens, they all
share the same enthusiasm about being able
to play music. For CMC there is nothing moresatisfying that providing many students withthe opportunity to experience the joy andexcitement of musical performance.
Through electronic musical instruments,
Casio is contributing to the creation of a richmusical culture.

Casio and the Market

The Casio Music Circle (CMC) is anorganization for keyboard instructors which
was established with the aim of providing thejoy of musical performance to as many
people as possible.
Although many music schools prioritize
educational demands, the CMC keyboard
classes emphasize having fun. CMC uses its
own curriculum, original textbooks, andlesson tools that support performance. In
this way, CMC offers lessons that people of
all ages can easily enjoy as a pastime.
Moreover, the annual CMC Festival brings
many students from across Japan together
to share the results of their lessons.

CMC Class (photos)
Casio Corporate Report 200721

CSR Management

Dedicated to Socially Responsible Management
At Casio, management is driven by the principles of CSR enshrined in the Charter of Creativity for
Casio and Casio Common Commitment, which set out the path to realizing the corporate creed,”Creativity and Contribution.”

Pursuing CSR-driven
Management
The idea of making something from nothing—going from “0”
to “1”—was the driving force behind the establishment of
Casio. The four Kashio brothers founded the company withthe goal of contributing to social progress by producing theirown unique products. Thanks to their uncompromising commitment and spirit of challenge, they overcame innumerable
obstacles along the road to realizing this goal. The corporate
creed, “Creativity and Contribution,” emerged from theseexperiences in Casio’s early days.
Casio has been guided by this corporate creed throughout the years, maintaining a creative corporate culture all thewhile. More recently, it established the Charter of Creativity
for Casio and Casio Common Commitment in order to ensurethat its business activities will continue to contribute to society. Casio is united in its commitment to live up to thestandards in these declarations.

In addition to a basic attitude and awareness about work,
the Charter of Creativity for Casio and Casio Common
Commitment incorporate many CSR concepts. By observing
the Charter and Commitment, Casio employees are both
implementing Casio’s social responsibility and realizing thecorporate creed—really one and the same endeavor.
Casio believes that its efforts to realize Creativity andContribution will continue to earn the trust of people aroundthe world.

CSR concepts incorporated in the Charter of Creativity
for Casio and Casio Common Commitment■ Social contribution throughbusiness activities■ Responsibility to customers■ Responsibility for the global
environment■ Responsibility to stakeholders■ Responsibility for complianceFirst Chapter, 1 (1)Second Chapter, 1 (1) to (3)Second Chapter, 2 (1)Second Chapter, 3 (1)Third Chapter, 1 (1) to (3)▲The Charter of Creativity for Casio and Casio Common Commitment— A Promise from Everyone Working at Casio —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” andthis includes not only manufactured goods, but also services andsupport, and everything else that we do.
(1) We will accurately understand the universal desires of people all over theworld. Our business is creating what people need and delivering satisfaction.
(2) We will look at things from a variety of perspectives, constantly seeking new
insights, and avoid adhering to conventional ideas, fixed notions or thinking
that is dependent on precedent.
(3) We will take the way of original thinking, never imitating others.
2. We will be idealistic in all of our work.
(1) We will go beyond conventional thinking to envision the ideal state of affairs.
(2) With this ideal as our goal, we will think and act creatively to discover themeans of realizing it.
(3) We will remain idealistic at heart, constantly striving with intense
determination to realize our vision.

3.We will foster relationships of “respect and trust.”(1) We will share growth and development with all of our stakeholders, never
simply prioritizing our own gain. We will always adopt a “give-and-take”
approach, respecting others and appreciating their points of view.
(2) We will be sincere and transparent in disclosing information to the public, andaddress any issue that may arise rapidly and accurately.
(3) As Casio Group employees, we will value and exercise “respect and trust”
toward one another, be sincere in our actions, and be justifiably proud of the
Casio brand.

Third Chapter
We will back up our words and actions with trustworthiness andintegrity, and work as professionals.
1. We will take complete responsibility for all of our words and actions inaccordance with all laws and regulations.

3. We will carry our work through to completion, with a strong
determination to take on every challenge that comes our way.
(1) We will always set our sights high, and continue striving to accomplish what
we have set out to do, without compromise.
(2) We will make bold and detailed plans for fulfilling our commitments, thinking
rationally, without over-dependence on intuition or emotion.
(3) We will thoroughly analyze all results, whether successful or not, and makeuse of what we learn in taking on the next challenge.

(1) We will comply with every law and regulation, whether external or in-house, in
all of our business activities.
(2) We will, as members of the Casio Group and vital participants instrengthening the Casio brand, take complete responsibility for all of ourwords and actions, being aware that we each represent the company and, as
a citizen of our own community, also have a responsibility to society.
(3) We will distinguish between right and wrong in all matters, and act according
to proper judgment and personal conscience.

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

2.We will each take responsibility for our results and success, according to
our individual role.
(1) We will each obtain a clear understanding of our personal role andorganizational mission, and perform our work accordingly.
(2) We will each always be responsible for our personal conduct, and will neverabdicate our own responsibility or attempt to shift blame to another person.
(3) We will each genuinely accept the consequences of our own conduct, anduse such experiences as lessons for further improvement.

1. We will provide people with “limitless inspiration.”(1) We will take a focused, customer-oriented stance, and consider everythingfrom the customer’s point of view.
(2) We will be strongly conscious of the need to offer inspiration and delighttranscending mere “satisfaction” to the customer, by providing products andservices that dramatically exceed our customers’ expectations.
(3) We will always respect the actual opinions of customers, and contribute tosociety by adding new value in accordance with the wishes of customers.
2. We will share a “life of spiritual and material prosperity” with people.
(1) We will carefully consider the irreplaceable resources and environment of theearth, and conduct business activities with concern for the environment as a
top priority.
(2) We will work to continue providing products and services that offer people alife of spiritual and material prosperity and provide convenience to thebusiness world, always at a reasonable price.

22(3) We will contribute to the improvement of people’s lives by working in such a
way that people recognize “the essence of Casio” in everything we do, making
the most of our company’s unique core technologies and expertise.

Casio Corporate Report 2007

3.We will strive daily to improve everything we do.
(1) We will do our best to improve ourselves, and will value self-reliance as we
strive to improve the scope and level of our skills.
(2) We will always exercise critical thinking, asking ourselves questions such as“why?” and “what caused this?” in order to find ways to improve.
(3) We will not merely fulfill our own duties, but will also, as professionals,
think about the good of the larger group and seek solutions for larger issues
each day.
*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.

Corporate Profile

Corporate GovernanceCasio is constantly striving to strengthen its corporate governance, focusing on the priority issues of quick
decision making, proper execution of operations, and improved transparency of business management.

Corporate Governance
Framework

System of Internal Controls
CSR Highlights

As part of efforts to strengthen its governance, Casio has set
the basic policy for reinforcement of its system of internal
controls. The measure was adopted at the board of directors’
meeting held in May 2006, and Casio has since beenworking to execute it.
Specifically, Casio established the Basic Risk
Management Policy to reform its group-wide risk
management system. In addition, Casio has built amanagement mechanism with specific links to the laws thatare especially pertinent to Casio’s operations. The policy isdesigned to further improve Casio’s risk management
processes, while also taking into account the need for
efficient interface with the systems that secure proper
operations at group companies.
In terms of securing the effectiveness of auditing, Casio
has built a framework to provide support for the corporate
auditors. Casio’s corporate auditors attend all the important
meetings of committees including the board of directors,
board of corporate officers, and the CSR committee, but with
the new framework, they are also able to rapidly produce
reports on important matters whenever needed.
Casio is also building a system for securing even greater
reliability in financial reporting, in response to Japan’s new
Financial Instruments and Exchange Law, which will first
apply in the fiscal year ending March 31, 2009. This system
primarily involves the Accounting Department, theInformation Systems Department, and the CSR Operations
Section. The aim of the effort is to increase the effectivenessof Casio’s internal controls, under the unifying policies of
top management.

CSR Management
Casio and the Market
Casio andthe Global Environment

Casio recognizes that quick decision making, proper
execution of operations, and a robust management oversightfunction that increases the transparency of business
management are extremely important factors in achieving
business goals and continuing to raise corporate value. This
recognition guides Casio’s ongoing efforts to improve
corporate governance.
In June 1999, Casio adopted a corporate officer systemthat clearly separates the management oversight andexecution functions.
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 ofbusiness operations. This mechanism enables smooth
implementation of group-wide adjustments and measures.
The board of directors is tasked with making prompt,
reasonable management decisions. Board meetings areattended by directors and corporate auditors, who discussand make decisions on important business issues.
In accordance with audit policies approved by the boardof corporate auditors, corporate auditors attend board of
directors’ meetings and meetings of the corporate officers.
In addition, they perform careful audits by gathering
information and receiving reports from directors andothers, and by reviewing resolution documents relating toimportant decisions.
The internal audit department performs audits of Casio
operations to ensure they are in conformity with laws andregulations as well as internal standards such as theorganization control standard. It also conducts evaluations
and offers recommendations for improvement.

Board ofCorporate Auditors

Audit

Corporate auditors

Audit staff

Audit

Election anddischarge

Appointment,
dismissal,
Board of Directors and oversight

Directors

Board ofCorporate
Officers
President
and CEO

Oversight

Oversight

Business
divisionsGroupcompanies

Corporate
officers

Casio and SocietyInternal audit

CSR Committee

Internal Audit Department
Subcommittees

Election anddischarge

Accounting
audit

Accounting auditor

Company Data

General Meeting of Shareholders

Election anddischarge

Casio and Employees

Corporate governance framework

Accounting audit

11 directors and 3 corporate auditors, 2 of which are external auditors (as of March 31, 2007)

Casio Corporate Report 200723

CSR Management

Compliance and Risk Management
Casio is reinforcing its internal controls while working to improve employee awareness of compliance andcontinually improve risk management.

Compliance andRisk Management
The Charter of Creativity for Casio and Casio Common
Commitment were established in 2003 in order to realize thespirit of Casio’s corporate creed, “Creativity andContribution.” Annually, officers and department heads makea pledge that they will follow the Charter and Commitment
and take responsibility for educating their subordinates andcolleagues to do the same. All employees also sign a card
printed with the Charter and Commitment, and carry the cardwith them at all times. The Casio Code of Conduct has also
been established to ensure that all employees know exactly
what it means to act as responsible working people, so thatevery day they spend on the job helps Casio contribute tosociety. It serves as a guideline for specific employee
actions, and has further improved Casio’s levelof compliance.
“CASIO Style,” an intranet site dedicated to raising theawareness of employees, includes messages from top management on the type of company that management andemployees should strive to build, as well as articles basedon the personal experiences of top executives.
Certain major laws and regulations have a major impact
on society and are also deeply related to Casio’s corporate
activities, including Japan’s Subcontract Act, and export
control laws and regulations. Casio has set up individual
specialized committees to deal with legislation, and has constructed relevant compliance systems for the entire group.
Meanwhile, Casio is moving forward with revisions to its
risk management mechanisms and systems based on the
Basic Risk Management Policy established in May 2006. A
Risk Management Committee chaired by the Chief Risk
Management Officer (CRO) has been established, and asystem is in place that brings together the risk management
departments and the committee secretariat, which is theprinciple executor of risk management activities under thecommittee. This mechanism enables the continual
implementation of management activities for each risk basedon the PDCA management cycle of Plan (planning), Do(implementing and operating), Check (evaluating andauditing), and Act (revising and improving). This also
includes monitoring by the Internal Audit Department.

In fiscal 2007, Casio’s main risk management
departments led the effort to take an inventory of risks,
focusing especially on risks related to compliance. They
analyzed risks using the indicators of probability ofoccurrence and level of potential impact and drew up
concrete measures for individual risks. Casio will continue toimprove its risk management system in the future, andstrengthen internal controls.

Charter of Creativity for Casio (card)

Casio Code of Conduct website
http://world.casio.com/corporate/principle/conduct.html

Responding to Emergencies
The environment in which companies operate presents avariety of risks, and it is crucial that management respond tothese risks quickly and flexibly. In the event of an
emergency, it is critical to prioritize the saving of human life,
and this requires an initial response that is both rapid
and appropriate.
In order to prepare for such an effective response, Casio
has created a Crisis Management Manual.
The manual contains the following basic priorities, andwill be revised whenever necessary based on changes in thebusiness environment.
1. Securing the safety of all employees and their families
2. Preserving corporate assets
3. Maintaining business activities
Volunteer fire brigades have been organized at eachsite, and fire drills are held once a year with the participationof all employees.

Risk management system
CSR Committee
Internal Audit
Department
Chief Risk Management Officer

Risk Management Committee
Main risk management
departments

Staff function departments,
Subcommittees

Risk management
departments

Casio Computer Co., Ltd.,Group companies

Risk Management
Committee Secretariat

Emergency response drill

24

Casio Corporate Report 2007

Corporate Profile

Whistleblower Hotline

Information Security

Contact for mattersrelating topersonal information

Person responsible for
information systems

Person responsible
for education

Peron responsible for departmental
personal information management

Hotline Office

Investigation

ReportingInstructions

Applicabledepartments

Improvements/notification

Top management

Activities of the Compliance
Committee on the Subcontract Act
Casio Computer Co., Ltd., has set up a Compliance
Committee on the Subcontract Act, which includes groupcompanies. The company’s efforts to ensure all transactions
are fair and in accordance with Japan’s Act against Delay inPayment of Subcontract Proceeds, etc., to Subcontractors(Subcontract Act) are as follows.
Every fiscal year the committee makes an activity plan.
Each department is then audited by committee members,
and instructions for improvement are given for addressing
any irregularities found. Based on an education plan, thecommittee carries out activities to ensure that employees
maintain the necessary knowledge on subcontractor
transactions and compliance concerns. Moreover, thecommittee obtains the latest compliance information by
participating in courses sponsored by the Japan Fair Trade
Commission and monitoring government websites. This
information is then shared throughout the group.

Company Data

Person responsible
for customer service

External hotline
agencyInternal hotline

Casio and Society

Personal Information
Protection OfficeHotlineCasio and Employees

Chief Privacy Officer (CPO)
and personal
information manager

Whistleblowers

Casio andthe Global Environment

CSR Committee
Officer in charge of audits

Casio’s hotline system

Casio and the Market

Personal information protection system

In April 2006, Casio set up a Whistleblower Hotline, andappointed an officer to be responsible for its operation. The
hotline has access points both in and outside the company,
and responds to opinions, questions and queries fromanyone doing work for Casio in any capacity. By protecting
the identity of the whistleblower, this hotline serves as aneutral, fair intermediary between the company and people
with information to report.
The hotline received 21 contacts in fiscal 2007.
Investigations were made to confirm the situation behindeach contact, based on the background and environment
surrounding each one. Casio is genuinely dedicated to fair,honest management.

CSR Management*1 Privacy Mark: A program where the Japan Information Processing
Development Corporation, a public-service foundation, evaluates theadequacy of corporate protective measures related to the handling of
personal data. Companies that are found to have adequate protective
measures in place are certified and permitted to display the Privacy Mark.
*2 ISMS: A framework which companies or organizations can adopt to ensure
and maintain personal information security by setting security levels basedon rules (security policies) and implementing continuous risk management.
ISMS became a global standard (ISO 27001) in October 2006.

CSR Highlights

Casio is aware of its important social responsibility tomaintain the security of information that it collects from
customers and other stakeholders in relation to its businessactivities. Casio strives to maintain the highest level of
information security. In anticipation of full implementation ofJapan’s Act on the Protection of Personal Information, Casio
launched its Protection of Personal Data Project to ensurethat all Casio employees are able to manage personal
information properly. Casio is working to formulate andimplement specific policies and procedures. Furthermore, aspart of Casio’s drive to strengthen its system for safe andproper handling of personal data, Casio Computer Co., Ltd.,
worked to qualify for the Privacy Mark*1 certification andreceived it on December 27, 2005.
After qualifying for the Privacy Mark,
Casio carried out appropriate measures tomeet the requirements of the JIS Q 15001
compliance program, which concerns
personal information protection. These
measures included education for all
employees and officers, control of information system accessand computer logs, signed agreements with business
partners on the handling of personal data, and internal
auditing. Along with the revision of JIS Q 15001 in May 2006,
Casio revised its applicable rules on April 1, 2007, and is
working to strengthen supervision of information consignees
as well as risk analysis.
The Information System Department, which manages
Casio’s information assets, is working to obtain ISMS*2 (ISO27001) certification by the end of 2007, and implementing
comprehensive security measures. Through these efforts,
Casio will continue to strengthen information security andpersonal information protection, in order to maintain the trustof customers.

Person in charge of departmental
personal information management

Casio Corporate Report 200725

Casio and the Market

Technology R&D to Create
Responsibilities
Next-Generation Products
to Customers
Guided by its commitment to Creativity and Contribution, Casio is achieving constantadvances in the core technologies required to develop one-of-a-kind products.

Casio’s Technology Strategy andDevelopment Policies
The developer’s spirit
A company’s contribution to society depends on the successof its business. Casio’s corporate creed, “Creativity andContribution,” recognizes this truth. Contribution toemployees, investors, partner companies, and local
communities is premised on the creation and continual
production of products and services that are truly useful tosociety. This is also the source of a company’s profitability.
At Casio, making creative contributions begins withtechnology and product development.
Casio’s product developers understand that it takes
constant creativity to ensure that the technologies they
develop contribute to stakeholders and society. Thisdeveloper’s spirit has been with Casio since the beginning.

R&D objectives
With the pace of technological progress becoming fasterand faster, development of successful new products andservices requires a keen understanding of new technologicaltrends and a firm commitment to developing originaltechnologies.
Casio applies the latest technologies to create productswith new added value never seen before. Casio products
offer more convenient functions, improved usability, better
affordability, and superior portability, compared toconventional models. Just as when black and white TVs weretransformed by color, when fixed phones went mobile, andwhen various types of information became instantly
accessible on the Internet, Casio’s development of newtechnologies has made life more convenient and enjoyablefor people everywhere.
Casio prioritizes research themes that are most likely togenerate completely new value from original technology
development, for the consumer, office, and electronic
component markets.

Development for a sustainable society
Casio is well known for developing products that arecompact, lightweight, slim, and energy efficient. Casio
development seeks to achieve energy and resource savings
coupled with high performance and ease of use. All of theseobjectives have been met in Casio products such as
electronic dictionaries, digital timepieces, digital cameras,
cellular phones and handy terminals.
Specifically, Casio is working to reduce the number ofcomponents by using high-performance semiconductor
technology; to reduce energy consumption, utilize solar
power, and use smaller batteries; and to use less plastic bydeveloping high-density mounting technology. Casio also
actively seeks to reduce overall environmental impact byusing recycled materials in its products and avoiding harmful
substances. All of Casio’s product development aims to help
build a sustainable society.
Priority technological fields●LSI technologies•New systems •Advanced design tools•Low power consumption technology●High-density mounting technology•High-density mounting devices•Production technology●Device technologies•Output devices (displays and printers)•Input devices (image sensors)•Energy devices (solar cells and batteries) •Optical lenses•New devices (MEMS and organic)●Communication and digital broadcast technologies•CDMA •Ultra-compact batteries •GPS •Proximity wireless•Digital broadcasting●Information network and system technologies•Network technology •Software platform technology•System applications●Software and IP (algorithm) technologies•Image and audio compression/decompression and detection
technologies •Security●Environmental technologies

Development that advances products
Casio is focusing on seven technological fields to drive its
effort to develop original products.
Casio’s goals for all of these technological fields are
as follows.
1. Strengthening and expanding Casio’s existing Stable
Businesses
2. Remaining competitive in the strategic business areas
where competition is intense, and making businesses
profitable in these areas
3. Providing next-generation products and services that fulfillchanging social, environmental, and consumer
requirements.
Casio has set individual technology development themesfor each business, and is undertaking development
accordingly.

26

Casio Corporate Report 2007

•Lead-free, resource saving, recycling, part reduction,and elimination of harmful chemicals

Eiichi Takeuchi
Senior General Manager & Corporate Officer
responsible for intellectual property
General Manager, Core Technologies R&D Division

Casio has a history of fostering new
cultural developments by creating newtechnologies and products, true to ourcreed of “Creativity and Contribution.”
Going forward, Casio will take on thechallenge of producing even more technological innovations
by undertaking environmentally friendly initiatives in areas
such as resource and energy savings, focusing on the sevenpriority technology fields detailed above. We fully intend tokeep contributing to society by offering products that provide
convenience and excitement.

Corporate Profile

Specific Initiatives
Responsibilities
in Technology R&D
to Customers
Casio consistently pursues resource and energy savings in order to promote a sustainable
society and preserve the global environment, and its R&D aims to foster new lifestyles.

Development of Radio-controlled
Watches and Antennas◆ Message from the prize winner ◆It has been a fantastic experience
for me to present Casio
technology to researchers from allover the world. I would like tothank Casio’s Timepiece Division
for its considerable support. I wantto continue contributing to thedevelopmentof Casio.

Casio and the Market
Casio andthe Global Environment

Kazuaki Abe
Core Technologies
R&D Division

Fall 2006 Demonstration Model

Casio and Employees
Casio and Society

Basic mechanism of fuel cell
Oxygen from air

Fuel
Fuel
cartridge

HydrogenMicroreformer

Generator
cell
stack

Company Data

Further environmental considerations are needed for
portable devices. In anticipation of future needs, Casio has
researched environmentally friendly micro-energy sources
for mobile devices, including solar cells.
Casio is already developing the clean energy technologyof the future, namely fuel cells. With this kind of energy
source, the hydrogen contained in fuels such as methanol is
extracted and made to react with oxygen in the air, thereby
generating electricity. By replenishing the fuel whenever itruns out, it is possible to operate a device continuously
without the need to recharge. As the interchangeable fuelcartridges are made of PET plastic or aluminum for easy
recycling, there is less environmental impact compared toconventional batteries. Additionally, since these fuel cell
cartridges can be used continuously for four times longer
than conventional rechargeable lithium ion batteries andenable device weight to be halved, the performance ofmobile devices will significantly improve.
In order to achieve both the compact design and highperformance required for cutting-edge mobile devices,
Casio has developed its own reformer using semiconductor
processing technology. This has enabled the miniaturizationof the reformed fuel cell, which people thought could never
be incorporated into mobile devices because of its size.
An academic presentation was made on the test system
for this technology in the autumn of 2006. In the coming
months and years, Casio will continue its R&D with the aim ofachieving the practical application of reformed fuel cells,
thereby enabling the development of more environmentallyfriendly mobile devices.

CSR Management

Fuel Cells—A Next-Generation
Source of Clean Energy

At the Asia-Pacific Microwave Conference (APMC) held in
Yokohama in December 2006, an employee of the CoreTechnologies R&D Division at Casio Computer Co., Ltd.,
received the APMC 2006 Prize. APMC is the one of threemajor microwave conferences held worldwide. The prize isawarded to an outstanding paper presented at thisconference that is considered to present advanced
microwave research. The recent winning paper described
the theory and development of simulation technology
relating to more efficient design of antennas for radiocontrolled timepieces.

CSR Highlights

To produce radio-controlled watches with superior design, it
is necessary to miniaturize the high performance antenna as
much as possible. As these types of watches are
increasingly being made with the antenna built into the metal
casing, it has become particularly important to decrease theantenna size without reducing the reception sensitivity.
However, with the current “cut-and-try” designs, antenna
miniaturization is reaching its limit. Furthermore, since radiocontrolled watches use long wave radio signals, which
prevent the use of high-frequency antenna analysis tools,
original technology development is needed. By using
magnetic field simulation that facilitates an antenna designfor optimal speed and efficiency, Casio is developing
technologies needed to produce radio-controlled watches
that are more compact and highly sensitive than ever before.

Best paper award at an international microwave conferenceElectricity

H2O and CO2 (emissions)

Casio Corporate Report 200727

Casio and the Market

Specific Initiatives in Technology R&D

Cellular Phone and Wireless
Technologies
One Segment (1-Seg) broadcasting for mobile devices
began in Japan in April 2006. Programming can be seen invarious places across Japan, and new uses for the service
are being devised. Casio has been working on developing
technology that enables proper reception of 1-Seg broadcasts even in places where the signal is weak. The research
has achieved not only analysis and correction functions forfrequency and signal strength, but also time axis analysis.
Another technology was created to minimize the Doppler
deterioration that occurs due to building reflection or whenmoving at high speed on a Bullet Train (figure below). Finally,
Casio succeeded in designing the most sensitive receivermodule in the industry by selecting the optimum combinationof antenna and RF device, and setting and executing optimal
conditions for reception on mobile devices.

Signal correction technology
Time

Casio Collaborates with Kochi Prefecture on
Government Program for Technological Excellence
Since 2003, Casio Computer Co., Ltd., and Kochi Casio Co.,
Ltd., have been participating in a program called“Collaboration of Regional Entities for the Advancement ofTechnological Excellence” being promoted by the Japan
Science and Technology Agency and Kochi Prefecture.
This research program is being carried out at Kochi
University of Technology and other universities with theparticipation of local companies, and aims to develop newtechnologies which foster new regional industrial activities.
There are several research themes, but the primary one
involves developing new transparent conductive film materials, which are indispensable for the production of LCDs. It is
expected that the demand for transparent electrodes will beever greater for flat panel displays, including liquid-crystal,
plasma and EL devices, and touch panel applications such as
car navigation systems, game consoles, and cellular phones.

Links between research themes

Frequency

Features of Zn0

Previous
correction range•Low temperature deposition•Material is plentiful and inexpensive, In ➝ Zn
• Simple process equipment possible• Wide gap semiconductors (optical applications)

Ideal for energy and resource saving industries

Signal for
Correction
standard signal correction

Correction rangeof new technology
Low-resistancetransparent
conductive film

W51CA cellular
phones with built-in,
high-performancereceiver modules

Casio has researched and developed a number of coretechnologies related to information security. In the area of
biometrics, it has conducted R&D of fingerprint input devices
and fingerprint authentication algorithms. The devices areable to obtain high-quality images of diverse fingerprints,
and the authentication algorithms can handle fingerprint
images of greatly varying quality. Casio has also developed
original encryption algorithms and tailored them for various
Casio products, including in its business products, alongwith fingerprint authentication technology.

Transparent
electrode/
input device

n-Zn0

Authentication and Security
Technologies

Kochi Universityof Technology

Kochi University of Technology,
Casio Computer Co., Ltd.,
Kochi Casio Co., Ltd.,
Tosa Denshi Kogyo Co., Ltd.,
Konica Minolta Technology
Center, Inc.,
Nagoya University

Zn0TFT
i-Zn0

Si-Ge

New material
system LCD

Backlighting

Backlighting

Ultraviolet
LED
Kochi Universityof Technology,
Kyoto University

Flat panels
and solar cells

p-Zn0

Display withbuilt-in hard
driveParticipating agencies
Nippon Kodoshi Corporation,
Kochi Toyonaka Giken Co., Ltd.,
Kamahara Chukosho, Ltd.,
Kochi Prefectural Industrial
Technology Center

Agricultural
lamps,
fluorescentlights,and projector
light sources

Light source
based onfield electron
emission
Kochi Industrial
Promotion Center,Fuji Heavy Industries, Ltd.,
Kochi University

ND / CNW Features
High efficiency, high luminescence, and low heat emission

Rakuichi BX200: A device
incorporating Casio’s own
fingerprint authentication
technology. An opticalfingerprint sensor is astandard feature on the sideof the LCD monitor.

28

Casio Corporate Report 2007

* See page 45 for R&D information on materials used to replace therare metal indium.

Responsibilities
to Customers

Casio is developing systems for creating intellectual property, and working to securecompetitive business advantage and flexibly use its intellectual property toincrease revenues.

Basic Policies

Encouraging Invention

Respecting third-party intellectual property

Intellectual property activities

Initiatives for creating intellectual property

Personnel
training

Patent Advisory
Engineer System
Techno Power

Patent application and rights
acquisition activities

Invention award system

Leveraging
intellectual
property
Securing superiority by making
the most of owned rights
Licensing activities

Protection of brands
and designs
Avoiding third-party
patent risks

Company DataIntellectual
property
educationsystemProtectionof intellectual
property

1. Filing patent applications and acquisition of patent rights
Casio is working to create strategic patent groups consistingof patent applications and patent rights (selection andconcentration) falling in priority technology areas and toestablish basic and de-facto patents in such technology
areas. It is also actively engaged in filing patent applications
and acquiring patent rights not only in the US and Europe
but also in Asian markets such as China, South Korea,
and Taiwan.
2. Protection of brands and designs
Casio strives to protect and maintain the value of its brands,
which have earned the trust of customers. Moreover, it
secures rights
Design rights
to brands and Trademark rights
designs globally, and takes
active steps incooperation
with theauthorities ofrelated countries to protect its brands from unlawful manufacturers ofimitation goods, in order to protect customers’ interests andavoid any harm to the Casio brand image.

Casio and Society

Casio promotes effective intellectual property activities bymaintaining a variety of intellectual property systems. Casio
aims to generate a continuous stream of R&D outcomes that
become new intellectual property, while properly managing
the intellectual property that it has already amassed.

Protecting Intellectual Property
Casio and Employees

From a CSR standpoint, Casio respects the intellectual
property rights of others, and observes all relevant laws. It
makes every effort to avoid infringing on the patents of third
parties, in all stages from R&D to practical application.
Casio also takes prompt, appropriate steps against any
infringement of its own patent rights.

Casio andthe Global Environment

Casio’s Intellectual Property Management Policies(details)

Casio and the Market

The following four policies guide Casio’s efforts to properly
secure, protect, and manage its intellectual property.
1. Making Casio a company with strong technologies andintellectual property rights
2. Utilizing intellectual property rights
3. Avoiding the risk of intellectual property infringement
4. Developing human resources for intellectual property

1. Patent Advisory Engineer System
This system was initiated in 1994 for the ongoing creation ofoutstanding intellectual properties. Highly qualified engineers with good technicalknowledge and strong leadership qualities are appointed as
patent advisory engineers andassigned to technical divisions.
Their responsibility is tostrengthen the intellectual prop- Company-wide patent advisory
engineers conference (November 2006)
erties within their individual
divisions by helping to create core inventions, explore opportunities for new inventions, evaluate inventions, and avoid
infringement of other companies’ patents.
2. Techno PowerThis program aims to energize
technology developers andfacilitate the sharing and accumulation of technology.
Intellectual property results areannounced to management,
Techno Power (September 2006)
engineers share information,
and an exhibit is held to showcase the resulting inventions
and patents. In addition, awards are given to the inventors ofoutstanding patented technology. Employees are inspired todevelop new technologies through the resulting pride andmotivation, and a climate has been created where the resultsof hard work are well appreciated.

CSR Management

Casio’s Intellectual Property Management Policies

CSR Highlights

Casio’s corporate creed is “Creativity and Contribution.”
Casio undertakes creative processes such as invention anddiscovery, and seeks to fulfill latent needs and develop newmarkets. This ensures that Casio continues to produce
unique products that have never been seen before.
Casio recognizes that intellectual property is an
important management resource for companies. While
respecting the intellectual property rights of others, Casio
protects its own businesses using a unique approach tointellectual property management, and also strives toincrease its corporate earnings by leveraging its
intellectual property.

Support for
invention
creation

Corporate Profile

Intellectual Property Initiatives• Global Patent Portfolio• Conditions for Trademark and Design Rights
Infringement Countermeasures
Casio Corporate Report 200729

Casio and the Market

Customer Satisfaction andResponsibilities
Quality Assurance
to Customers
Casio is striving to improve the quality of its products and services, in order toincrease the satisfaction and confidence of customers.

Activities of the Casio Customer
Support Center
Communication is an important way for Casio to create longlasting relationships of trust with customers. Casio’s
Customer Support Center is the contact point for customers
to submit their opinions, requests and questions. Staff at theCenter carefully listen to each caller, and always strive to put
the following three objectives into practice.
● Confidently explaining Casio products to customers
before purchase● Sincerely responding to customer questions or concerns
after purchase● Earning the confidence of customers throughattentive communication
Training is the key to ensuring that support center staff are
effective, and the skills of each call taker are checked
regularly so improvements can be made. Moreover, all thestaff are given time to do their own research so they can staythoroughly informed about all the convenient functions of
Casio products.
The Customer Support Center also operates an Overseas
Customer Support Center. This center cooperates with thecustomer support centers at Casio’s overseas sales
companies. The Overseas Customer Support Center iscarrying out various activities
to foster good relationships oftrust with overseas users of
Casio products as well.
Another important missionof the Customer Support
Center is to faithfully relay
customer comments to theproper internal departments
Customer Support Centeras feedback. Customer
opinions are never ignored,
Types of Inquiries
and Casio is working to build
mechanisms for the full-scaleinternal application of such feedback. A page on Casio’s
intranet features customer comments not only from Japanbut also around the world, in order to encourage constantimprovement worldwide.
Going forward, Casio will continue to work to improve its
response to customers group-wide by upgrading the skills of
support center staff. Nothing short of the highest level ofcustomer service should be offered each and every day.

Customer Satisfaction Surveys
Casio periodically conducts customer satisfaction surveys toidentify customer opinions on a product-by-product basis. The
surveys relate not just to product function, performance, anddesign, but also to ease of use and customer service. The
results are then reflected in the creation of future products.

Example of digital camera improvements based on
customer comments

CustomerComments
EX-V7★I need a very portable, slim and compact camera
with a powerful zoom.
● Optical 7x high-magnification zoom lens
★I want to take good photos even in dark placesor when the subject is moving.
● CCD shift anti-shake mechanism● Anti-Shake DSP to reduce blur, using
high-sensitivity settings● Automatic sensitivity adjustment byanalyzing the subject’s movement● Auto-tracking AF that follows the
subject’s movement

Providing Support Information
Casio’s Support website offers easy-to-understandinformation on operation and repair, helping customers to
use their Casio products with confidence. Casio strives toresolve any customer issues online by making information
available in various local languages.

International
Support website“Customer Comments”
intranet page30

Casio Corporate Report 2007

List of URLs for local Support websites

Corporate Profile

Service System Earns
Customer Confidence

Casio’s Commitment to Quality

Quality Management Policies

Casio andthe Global Environment
Casio and Employees

To offer goods and services
Functions,that please and impress
performance,
customers, it is necessary todesign,pricecreate products that can win
Environmental
Reliability,
conservation,
their solid approval in all areas.
durability
Casio
recycling
In addition to function, design
qualityand price, these areas include
Safety,reliability, durability,
Serviceability
legal
complianceserviceability, environmental
soundness, and compliancewith relevant laws and regulations.

Casio and the Market● To build a good corporate image, we offer products and services
that please and impress our customers, gain their strong trust, andensure their peace of mind.
● We respond to our customers’ requests and inquiries with sincerity
and speed, and reflect their important comments on our products
and services.
● In all our business processes, we base our actions on the Principleof the Five “Gens”—in Japanese, genba (on site), genbutsu (actual
goods), genjitsu (reality), genri (theory) and gensoku (rule)—andadhere to the basics of business operations.
● We capture and analyze quality assurance activities quantitatively,
using reliable data, and use the analysis to make continuous
improvements. We also maintain a quality information system thatenables the sharing of the quality information and prevention ofproblems before they occur, and prevents recurrence ofquality problems.

Casio’s service departments, which are responsible for
product repairs, strive to satisfy customers by providing
service that fulfills three commitments: prompt and proper
response, dependable technology, and reasonable fees thatmeet with customer approval.
●Prompt and proper response
Casio’s service departments are taking steps to improve
operations by focusing on part procurement, the repair
system, repair technology, and repair consultation so as toshorten repair time and return repaired products tocustomers as quickly as possible. In Japan, Casio aims to be
the electronics manufacturer with the shortest repair time. In
other markets too, Casio is striving to shorten repair times tomatch levels in Japan. Moreover, Casio has repair locations
for system equipment across Japan, enabling prompt
dispatch of repair technicians to client sites.
●Dependable technology
Casio’s service departments are working to improve theirrepair technology, product knowledge, and customer service
skills in order to maintain customer confidence and realize
the kind of repair quality that customers expect. In addition,
Casio is striving to improve product quality by sending
customer comments from the repair sites as feedback to the
product development and manufacturing departments.
●Reasonable fees that meet with customer approval
Casio works hard to reduce any unnecessary burden on
customers by controlling repair costs. This is done throughimprovement of repair methods, such as the use of recycledparts, and setting repair fees that customers feel are fair.
Part recycling is important because it helps to reduce
discarded parts during repair work, and to control inventory.
Since fiscal 2007, this recycling has had a substantial
positive effect.

CSR Management

Casio maintains a strong quality assurance system, based on its
belief in “Quality First.” This system requires all employees to makequality their first concern in every task they perform, enabling thecompany to offer products and services 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 them peaceof mind.

CSR Highlights

Quality Concept

How customer comments are utilized for products and services
Quality issues

Questionnaire surveys

Customer
Customer satisfaction surveys

Sales
departments•Opinions•Complaints

Quality issues
Database

Dealers and agents

Information
retrieved

Customer Support Centers
Repair centers

Objectives

Cooperation

Dealers and agents

Quality
improvement

Customer Support Centers
Repair centers
WebsiteImprovement suggestions

Servicedepartments

Products
adopting
improvements

Investigation/analysis

Deciding response
Improvement
suggestions

Company Data

•To create
Casio fans
•To obtain productsatisfaction•To obtain service
satisfaction

Casio and Society

Meetings with customers•Requests

Product
development
departments

Examining adopted
improvements
Improvements built
into products

Service improvements

Casio Corporate Report 200731

Casio and the Market

Customer Satisfaction and Quality Assurance

Quality Assurance System
Casio has constructed a quality assurance system andconstantly strives to improve quality across the group.
The Casio Promotion Committee for Groupwide Quality
Enhancement is Casio’s highest quality assurance authority. It
meets semiannually by convening the heads from theElectronics business segment (consumer, timepiece andsystem equipment categories), the Electronic Components
segment and the communications business, as well as quality
managers of manufacturing and service affiliate companies.
Decisions are made at these meetings on company policies
and important issues relating to quality. The resolutions arethen communicated to individual departments and reflected in
specific quality assurance activities within the departments.
In 2004, the CS Control Group was created within the Sales
Department of the Electronics Equipment business to improve
consumer services. Since then, the CS Control Group has been
conducting activities toensure quality in productdevelopment incooperation with theEngineering Department(within the ProductDevelopment HQ) in aneffort to further improve
Promotion Committee for Groupwide
quality and services.
Quality Enhancement

Quality Management System
Casio continuously implements the plan-do-check-act (PDCA)
cycle throughout its process chain from product planning,
design, and evaluation, to purchasing, manufacturing, sales,and service. Casio’s thorough implementation of the PDCA
cycle ensures that quality constantly improves.
The following are the major initiatives of Casio’s quality
management system.
■ New Product Shipment Start Approval System
Before starting shipment of a new product, the quality
assurance persons responsible for each development process,with their business control supervisor, reconfirm each process
involved. This is followed by objective verifications by thesenior general manager of the Product Development
Headquarters, and the general manager of the Engineering
Department. Only then is a decision made to ship the new
product.
■ Post-sale Problem Response System
In the event that an accident or quality problem occurs after a
product sale, an information channel is established according
to the type and level of the problem. This mechanism ensuresthat the necessary information is communicated promptly. In
addition, Casio has mechanisms that enable the individuals
involved to share information on the status of problem
resolution, to discuss and decide countermeasures including
notification, and to clearly report and announce measures toprevent recurrence of the problem. Casio is able to respondpromptly and accurately to any problem that may occur.

32

Casio Corporate Report 2007

Efforts to Ensure Product Safety
Casio makes every effort to ensure product safety so that
customers can always use Casio products with peaceof mind.
Casio strives to secure product safety in each processincluding development, design, parts, manufacturing,
operating manuals, and repairs. The company examines
ways to increase safety, while carrying out precautionary
measures and activities to prevent problem reoccurrence.
Casio collects and analyzes incident information, in
accordance with the spirit and the aims of the revised
Consumer Product Safety Law, which went into force inJapan on May 14, 2007. With the goal of placing customer
safety first in the event of any mishap, it strives to disclose
accident information in order to prevent any further damage,as well as recalling products and making repairs.
Casio will continue to inspect its current information
gathering, notification, and disclosure systems, whilestrengthening its product safety initiatives, all with a clear
awareness of the company’s social responsibilities.

Status of Quality Assurance
Activities
Accomplishments relating to priority tasks in Casio’s quality
assurance activities in fiscal 2007 were as follows.
1. Ensuring customer safety and observing safety
standards and regulations
While placing the highest priority on design safety initiatives,
Casio has been carrying out comprehensive design safety
checks since fiscal 2006, and is using the results asfeedback for its design and evaluation standards. All ofthese are also designed to raise safety awareness.
2. Market initiatives for improvement of product quality
Each month Casio collects information from the market on
product quality. Using this information as feedback, a system
is maintained where product quality can be rapidly
corrected, and a trend of quality improvement has been
seen as a result. Nevertheless, since future products are
expected to have more complicated functions and higher
density mounting, more effort will be devoted to improving
design accuracy and ensuring quality in production.
3. Activities to reduce monetary losses due toquality issues
Casio addressed quality issues for each item in order toreduce quality-related losses, which serve as an indicator for
quality improvement. It made effective efforts to prevent
problems from occurring or reoccurring. As a result, Casio
has succeeded in reducing quality losses for many items
that experienced problems in fiscal 2006.

List of ISO 9001 Certified Sites

Corporate Profile

Universal Design Activities● A handwriting recognition function was adopted,
making the electronic dictionaries easier to use,
especially for those not familiar with keyboard
operation.
● The user manuals were completely reorganized,
making it is easier to master the basic operations.
● The design of the main-unit packaging was revised,making it easier to take out and replace the productand its accessories.

CSR Management

Casio and the Market

Strategically focused on its core competence in compact,
lightweight, slim, energy efficient technologies, Casio
develops products with as little environmental impact as
possible. Moreover, in addition to reducing product size
while increasing performance, Casio also strives to achieve ahigh-quality experience for the user so that people who are
unfamiliar with electronic devices and those who are lessconfident about IT can use Casio’s products comfortably.
Looking ahead at the future social environment, Casio iscommitted to providing products and services that are truly
beneficial to customer’s lives.
Casio has set the main objective for its universal design
activities: improve the quality of the user experience. Casio
works to develop products using human-centered design(HCD) in conformity with ISO 13407 processes.

Casio’s electronic dictionaries are used by a wide range ofcustomers in Japan, from junior high school students tosenior citizens. In fiscal 2007, Casio implemented
improvements not only to the electronic dictionaries
themselves, but also to the usability of the packaging anduser manuals.

CSR Highlights

Delivering a high-quality user experience

Example of quality improvements driven by universal design

Casio Universal Design Policies
1. Easily understood display andexpression.

Casio andthe Global Environment

2. Simple, understandable operability.
3. Reduce physical and mental stress.

An electronic dictionary that is easier to use

4. Provide safety and reliability.
5. Pursue product value.

Casio and Society

Obtaining direct evaluations from customers who actually
use the products and reflecting that feedback in productdevelopment are essential parts of HCD.
Casio has made it a top priority to develop products fromthe customer’s perspective, and requires its development
staff themselves to listen to customers’ opinions. Casio isdedicated to improving usability by applying evaluations
from user tests and feedback given to the Customer
Support Center.

When carrying out development, design, and sales activities,
Casio shares important concepts by posting universal
design guidelines on its intranet, making it possible to realize
the concepts while verifying quality objectives and specificconsiderations for improving product usability are met.
Casio is also enhancing employee education andawareness by holding internal universal design seminars, sothat every employee can understand the purpose andnecessity of universal design and individual themes canbe addressed.

Casio and Employees

From the customer’s perspective

Sharing universal design concepts

Company Data

Casio’s own UD activity markIn-house seminar

Casio Corporate Report 200733

Casio and the Market

Stable Supply of Products
Responsibilities
to Customers

Casio is working to strengthen its global supply chain and meet the rising demandfor its products by making the most of digitalization and expanding the reach ofits network.

Approach to Stable ProductSupplyActions for Reinforcing
Production Systems
When production of electronic dictionaries and electronic
musical instruments began at Casio Electronic Technology(Zhongshan) Co., Ltd., which was established in 2005, twoolder plants were closed, followed by Casio Electronics(Guangzhou) Co., Ltd., in 2006, whose production of digital
watches was taken over by Casio Electronic Technology(Zhongshan) in the spring of 2007. As a result of this, fivefactories in Southern China were consolidated into three factories, enabling factory management to be standardized at
the same time. In the future, Casio will pursue better management efficiency and promote further scale optimizationfor each plant in this region. The aim is to improve overall
productivity and to accelerate risk response measuresthrough the standardization of factory management.
Moreover, due to the rising cost of production in China,
which is being more accelerated along with the economic
development of that country, Casio is also working tostrengthen its system to protect itself against cost inflation
within the entire East Asian region including ASEAN.
Major changes are also required to the way of producing
products. Up to now, “production” often meant the mass
production based on inexpensive labor. In the future, it will
require more flexibility to be able to rapidly switch
production items, in order to quickly respond to market
trends, without any loss of quality or efficiency. In order tomaintain customer’s satisfaction and demand for safety,
production sites must fulfill these requirements bystrengthening supply chain control and enhancing functional
cooperation between manufacturing technology and productdesign. If this can be realized, then the ability of production
sites, regardless of the country or region, to recover fromsudden crises will be strengthened, and businesssustainability can be improved. It also helps lower the cost
rate by reducing excess inventory.
Casio is aiming to achieve all these effects bystrengthening each of the functions said above and byimproving efficiency thereof.

Based on its corporate creed of “Creativity andContribution,” Casio’s mission is to offer customers
enjoyment and wonder by providing original Casio products.
As a foundational part of this effort, Casio has establishedthe following policies to ensure the essential objective of astable product supply.
Policies on Stable Product Supply
1. Shortening production lead-time and improving planning andexecution accuracy through the streamlining of the supply
chain (procurement – production – distribution – sales –service) based on information technology.
2. Building good relationships with contracted suppliers thatprovide Casio with the needed parts so as to realize stabilematerial procurement.
3. Creating a decentralized production system, featuring at least
two production sites producing the same product and Casio
Group production sites producing multiple products, thatcan maintain flexibility to deal with various risks involvedin manufacturing.
4. Constructing an optimum production system for each productthat corresponds to characteristics of location (market
proximity, technological level, material procurement
environment, labor costs, logistics costs, and foreignexchange risk).

Initiatives to Strengthen
Production Quality
Casio is focusing on enhancing production quality at its
production sites in order to provide customers with productsof high quality at a reasonable cost. Daily improvements in
production quality are made under the basic conviction thatthe production line never allows any defective pieces either
to be produced in the first place or to be sent on tosubsequent processing. The results of these activities havebeen shared with all production sites around the world in theform of Production Improvement Case Report. This sharingof expertise in achieving quality improvements has helped to
upgrade production quality.

Production and supply systems for individual products● Contracted manufacturers
Electronic calculators, electronic
musical instruments, printers, timepieces,
digital cameras, system equipment,
cellular phones, data projectors●Casio Korea
Timepieces● ■ Jiu Shui Keng Casio
Electronics Factory

Timepieces, cellular phones●Casio Electronic
Manufacturing
Systems equipment (printers)■Casio Micronics

Electronic dictionaries, electronic musicalinstruments, TFT LCDs

Electronic components● Guandu Bohsei Electronics Limited(Wengyuan County)●■ Kofu Casio

Timepieces

System equipment, LCDs

● Casio Electronic Technology(Zhongshan)
Electronic dictionaries, electronic
musical instruments, timepieces●Yamagata Casio■Kochi Casio■Casio Singapore

TFT LCDs

LCDs● Casio (Thailand)
Timepieces● ■ Contracted
manufacturers
TFT LCDs, ECR● Electronic segment■Electronic Components segment

Production rate in China: 79% (production man-hour rate forfiscal 2007)
Labor-saving production line at Casio (Thailand)34

Casio Corporate Report 2007

Responsibilities
to Suppliers

Corporate Profile

Building Strong Partnerships
Casio is building strong partnerships with suppliers in and outside Japan that share Casio’s
procurement policies.

Basic Thoughts behind theProcurement Policies

Although the Supplier Guidelines are distributed in hard
copy to suppliers and available to everyone on the Casio
website, briefing conferences on Materials Procurement
Policy were held in Southern China and Thailand in fiscal
2007 to promote better understanding among suppliers in
the regions of China and Southeast Asia.

CSR Highlights

As Casio is working to strengthen its partnerships with
suppliers through fair and equitable transactions, it hasestablished the following Procurement Policies in order to
execute its social responsibilities throughout the supply
chain, covering matters including legal compliance,
respecting human rights, safety, and health, as well as
environmental protection.

Disseminating the Guidelines

CSR Management

Procurement Policies (main topics)
1. Fair and equitable transactions
2. Compliance with laws and social norms
3. Environmental protection

5. Policies on supplier selection and transaction
continuation

Casio and the Market

4. Strengthening partnerships with suppliers
Supplier briefing
in China

6. Securing right price and quality
7. Prohibition of personal-interest relationships

Procurement Policies

Supplier Guidelines (main topics)
16. Superior technologicaldevelopment abilities
17. Securing right price andquality
18. Securing stable supply
19. Ability to deal withelectronic transaction
systems
10. Prohibition of personalinterest relationshipAward ceremony

Casio is striving to further improve its social responsibility
fulfillment by seeking feedback from the relevant authorities
or institutions on its publication of the efforts for humanrights, safety, health, and environmental protection made atits overseas production and procurement sites.

Casio and Society

1. Compliance with laws
and social norms
2. Environmental protection
3. Proper information
security
4. Respect for intellectual
property
5. Sound and stablecorporate management

Casio and Employees

In order to ensure compliance with the Procurement Policies
together with its suppliers, Casio has established thefollowing Supplier Guidelines. All of Casio’s suppliers inJapan and elsewhere have agreed to these guidelines tohelp Casio fulfill its social responsibilities.
Casio has also introduced regular monitoring system toensure that these guidelines are properly fulfilled throughout
the supply chain.

Once a year, each supplier is audited to ensure guideline
fulfillment. By providing suppliers with feedback in the formof requests for improvement, Casio aims to strengthen social
responsibility fulfillment throughout the supply chain. Awards
are given annually to those suppliers with outstanding
guideline achievement results.

Casio andthe Global Environment

Fulfilling Social Responsibilities
Together with Suppliers

Managing fulfillment of the Guidelines

Company Data

Supplier Guidelines
Inspection teamvisiting Casio(Thailand)

Casio Corporate Report 200735

Casio and the Market

Responsibilities
to Shareholders
and Investors

Communication with Shareholders
and Investors
Along with increasing returns for shareholders, Casio provides appropriate and timely
information disclosure.

Basic Policies on Profit
Distribution to Shareholders
Casio considers maintenance and expansion of profit
distribution to shareholders to be an important management
goal. Accordingly, it is striving to improve its businessperformance and strengthen its financial position. Casio
distributes returns to shareholders by comprehensively
considering the company’s profit level, financial situation anddividend payout ratio, based on a policy of maintaining
stable dividends. Internal reserves are also being
appropriated for the R&D and investment necessary forstable corporate growth. These steps allow Casio toimprove its business results and strengthen its
management structure.
Dividends in fiscal 2007 were raised by ¥3 per sharefrom ¥20 in the previous fiscal year to ¥23, marking the fourthconsecutive year of growing dividends.

IR events
Casio holds financial results briefings for institutional
investors and securities analysts on the day that the results
are released each quarter. As the main speaker at these
events, the president or director in charge of IR explains thefinancial results summary and future outlook. On occasion,
Casio also meets individually with Japanese or otherinstitutional investors and securities analysts. Factory tours
and small meetings for specific business segments areprovided as well.

Growing dividends
25

¥23.0
¥20.0

20

¥17.0

Financial results briefing

¥15.0

15

¥12.5

A wide array of IR tools

10

5

0

FY2003

FY2004

FY2005

FY2006

FY2007

Casio provides various tools for investors and shareholders,
including quarterly financial results, semi-annual business
reports (in Japanese), and annual reports. By handing out,
mailing, as well as posting this information on the IR pages of
the Casio website, it is distributing IR information globally ina timely manner.

Communication with
Shareholders and Investors
The Casio Code of Conduct states, “We will aim to win
greater social trust in our open and transparent management
by disclosing corporate information appropriately and in atimely fashion, and by promoting communications with all our
stakeholders, including shareholders.” Based on thiscommitment, Casio is working hard to improve shareholder
and investor relations.

Business report

Annual report

Investor Relations website
http://world.casio.com/ir/

36

Casio Corporate Report 2007

Corporate Profile

Communication with individual investors

CSR Highlights

Along with fuller information disclosure on its website, Casio
is actively providing more information to individual investors.
These efforts include not just improvement of generalshareholder meeting content, but also holding management
presentations for shareholders after the meeting, and setting
up product display and explanation areas.

Inclusion in an SRI Index

CSR Management

Socially responsible investment (SRI) represents a
commitment to evaluate and select corporations forinvestment on the basis of their performance on the triple
bottom line. In addition to conventional investment criteriasuch as financial analysis, companies are also evaluatedbased on their CSR performance including legal compliance,
employment and human rights issues, social contribution,and environmental protection. SRI funds have been gaining
popularity in recent years, and the idea of SRI is becoming
familiar to investors. Casio actively responds toquestionnaires and information requests from SRI survey
institutions. Reflecting the positive evaluation of its CSR
approach and initiatives, Casio is listed in the Morningstar
Socially Responsible Investment Index (MS-SRI), as ofFebruary 1, 2007.

Casio and the Market

Investor Relations website

To create the MS-SRI, Morningstar Japan K.K., selected 150 listed
Japanese companies according to an evaluation of excellence insocial responsibility. It is the first SRI index in Japan based on
stock prices.

Casio andthe Global Environment

Shareholder Profile
As of March 31, 2007, the total number of shareholders is
29,560. The breakdown of these shareholders is as follows.
Product display

Stockholder composition

Inquiries to IR Department
In cooperation with the General Affairs Department, the IR
Department coordinates Casio’s investor relations activities,
and responds to all manner of inquiries from the many
shareholders and investors worldwide.

Financial
institutions

10.57%

46.89%

Individuals
and others
18.86%

Foreigninvestors
21.56%

Casio and Society

Casio’s communication with shareholders and investors isdesigned to ensure that they have a sound understanding of
Casio’s current condition and future outlook. In addition, theopinions obtained from investors are used internally as
feedback, and efforts are made to utilize this information in
future business management and decisions.

Casio and Employees

Other
corporations

Securities
companies
2.12%

Company Data

Casio Corporate Report 200737

Casio and the Global Environment

Environmental Management Vision
Environmental Management Activities in Fiscal 2007 and Future Efforts

projects to ensure that our products comply with the Chineseversion of the EU’s RoHS Directive as well as the Japaneseversion (J-Moss) and the North American version(California SB 50).
We are also taking steps to prepare for compliance with
the RoHS regulations that are expected to be enacted in the
future in South Korea, Australia, and Argentina.
Moreover, thanks to our commitment to proactive
information disclosure, Casio has been listed in various
indices (Morningstar, STB Good Company, etc.), which we
believe helps to increase our corporate value.

Yukio Kashio
Executive Vice President
and Representative Director
Chairman, Casio
Environmental Conservation
Committee

Performance in the Previous
Fiscal Year

Casio’s environmental management initiatives are driven by
the Casio Environment Charter and Casio Fundamental
Environmental Policies, which were established in January
1993 to articulate how the corporate creed, “Creativity andContribution,” applies to the environment. In fiscal 2007, werevised our Environmental Action Plan, adding targets for the
reduction of environmental impact at sites outside Japan. In
particular, in an effort to fulfill our responsibility as amanufacturer by complying with today’s globalizing
environmental laws and regulations, we firmly executed

Business-site initiatives
We have traditionally pursued initiatives based on theEnvironmental Action Plan separately at each business site.
In fiscal 2007, we set specific goals for energy and resource
conservation and global warming countermeasures for eachindividual site and have launched programs designed toachieve the targets. In fiscal 2008, we will establish a newcommittee dedicated to the task of reducing environmental

Performance report for Casio Environmental Action Plan
Category

Theme

TargetProduct targets
1. Eco-products
2. Hazardous substance phase-out

Raise share of green product sales in total sales.

Increase green product sales to 70% of total sales by FY2008.

Reduce total usage of packaging materials.

Reduce total usage of packaging materials per unit of sales by 30% in FY2008 compared to FY2001.

Discontinue use of lead, mercury, cadmium, hexavalent chromium
covered by EU RoHS Directive in all applicable products.

Discontinue use of these substances by end December 2006.

Reduce CO2 emissions (Japan sites).

Reduce CO2 emissions per unit of actual production by 20% in FY2011 compared to FY2004.

Reduce CO2 emissions (sites outside Japan).

Reduce CO2 emissions per unit of production by 10%
in FY2011 compared to FY2005.

Reduce total emissions of greenhouse gases other than
CO2 (CO2 equivalent) to below 2000 level.

Reduce total emissions of greenhouse gases to the 2000 level of
7,278 tons-CO2 or below in FY2011.

Plant and business-site targets
1. Energy conservation(electrical power, fuel, etc.)
2. Reduction of greenhouse gases

Reduce water usage (Japan production sites).

Reduce water usage per unit of actual production by 10% in FY2009 compared to FY2001.

Reduce water usage (production sites outside Japan).

Reduce water usage per unit of production by 5% in FY2009
compared to FY2005.

Reduce paper usage (Japan sites).

Reduce paper usage per unit of actual production by 30% in FY2009 compared to FY2004.

Reduce generation of waste (Japan sites).

Reduce generation of waste per unit of actual production by 40%
in FY2009 compared to FY2001.

Reduce generation of waste (production sites outside Japan).

Reduce generation of waste per unit of production by 10%
in FY2009 compared to FY2005.

5. Reduction of volatile organic compounds (VOCs)

Reduce emission of VOCs to atmosphere (Japan production sites).

Reduce emission of VOCs by 30% in FY2011 compared to FY2001.

6. Hazardous substance phase-out

Detoxify PCB-containing equipment now in storage as Japan
Environmental Safety Corporation starts programin each region.
(Hamura, Hachioji R&D Centers, Kofu Casio)• Detoxify all PCBs stored at the Hamura and Hachioji R&D Centers
by FY2008.
• Detoxify all PCBs stored at Kofu Casio by FY2009.

7. Output reduction of PRTR
substances

Reduce output of PRTR substances (Japan production sites).

Reduce output of PRTR substances per unit of actual production
by 10% in FY2011 compared to FY2004.

8. Green procurement

Achieve 100% response rate (percent of parts covered bysupplier surveys) for green parts (sites in and outside Japan).

Achieve a 100% response rate in Japan during FY2007.
Achieve a 100% response rate outside Japan during FY2007.

9. Green purchasing

Raise green purchasing ratio to 60% of total purchases ofoffice supplies and office equipment (Japan sites).

Raise the green purchasing ratio to 60% of total purchases in FY2008(based on the number of purchases).

Reduce CO2 emissions (distribution in Japan).

Reduce CO2 emissions per unit of sales in Japan by 50% in FY2008
compared to FY2001.

Reduce CO2 emissions (distribution outside Japan).

Reduce CO2 emissions per unit of sales outside Japan by 5% in FY2008
compared to FY2005.

3. Resource conservation(water, paper)

4. Volume of waste output

10. Distribution-related global
warming countermeasures

Progress assessment key

38✩✩✩✩: Target was achieved and a new, higher target was established. ✩✩✩: Target was achieved.
✩: Making progress toward achieving target and expect results next fiscal year and beyond.

See the following reference material for per-unit figures for base years and target years:
Fiscal 2007 Performance Report for Casio Environmental Action Plan
Casio Corporate Report 2007

Corporate Profile

Product initiatives*See page 49 for more about our initiatives to reduce packaging materials.

Casio and the Market

Future Initiatives

CSR Management

In fiscal 2007, one year ahead of schedule, we hit our fiscal
2008 target of raising the share of Casio Green Products intotal sales to 70%. This year we raised the bar by setting agoal to reach 80% by fiscal 2009. We will continue to focus
on advancing our eco-product designs to meet this goal. We
are also moving forward with initiatives meant to realize a
30% reduction in the total packaging materials used per unitof sales in fiscal 2008 compared to fiscal 2001, which is thetarget for packaging materials set in the Environmental
Action Plan.

we are making the following environmental management
measures an integral part of our plans:● Revise the Environmental Action Plan and launch
campaigns to achieve all of its targets.
● Provide compact, lightweight, slim, and energy efficient
eco-products.
● Continue to reduce environmental impact at all Casio
Group business sites.
● Keep implementing proactive information disclosure to
stakeholders.
● Build a group-wide environmental management systemcovering the entire supply chain.
● Dependably comply with environmental laws andregulations.
We will continue to strengthen Casio’s foundation as
an environmentally advanced enterprise by executing
these measures. We are determined to help realize asustainable world.

CSR Highlights

impact. The committee will consider the adoption of more
efficient equipment and machinery and will move ahead withefforts pertaining to certification of green power, emissions
trading, and the adoption of renewable energy.

• Casio Environment Charter and Casio Fundamental
Environmental Policies• Green Products Sales Ratio Targets

Casio celebrates its 50th anniversary in 2007. We see thismajor milestone as an opportunity for a “second birth,” andProgress
assessment

Grew to 70.5%. (Target achieved one year ahead of schedule.)✩✩✩✩

Achieved a 23.7% reduction.

✩✩

Completely discontinued use(excluding some special purpose products).

✩✩✩

Plans for FY2008 and beyond■ Set FY2009 target at 80%.
■ Start planning and establishing standards for the next generation of eco-products.
■ Set new targets for FY2009 and beyond during FY2008.

■ Set targets for each site and consider/implement additional measures for each site.

✩✩✩■ Set new targets during FY2008.
■ Set targets for each site and consider/implement additional measures for each site.

Increased by 13,168 tons-CO2 over base year andby 1,732 tons-CO2 over previous year.

●■ Currently evaluating and considering reduction measures (introduction of alternative gases for, scrubbing,and recycling of SF6). Decide method in FY2009. Set FY2011 target at 7,278 tons-CO2.
■ Consider measures to increase percentage of recycled and reused water in total water usage.

✩✩✩■ Set new targets during FY2008. ■ Implement water reduction measures at new Chinese plants(including employee dormitories), which account for nearly 40% of water usage outside Japan.

Reduced by 5.0% from base year and by 9.5% from previous year.

✩✩■ Promote the shift to paperless work, including using projectors in meetings and reading data on the internet.

Reduced by 29.1% from base year and by 5.5% fromprevious year.

✩✩■ Continue reducing total waste output and set targets during FY2008 for higher ratio of valuables
in waste output.

Reduced by 25% from base year and by 18.1% fromprevious year.

✩✩✩■ Set new targets during FY2008. ■ Implement waste reduction measures at new Chinese plants,
which account for 1/3 of waste production outside Japan.

●■ Consider VOC alternatives or consider installation of scrubbing equipment (in Electronic Components segment).

Finished delivering PCB-containing equipment from Hamura andHachioji R&D Centers to waste treatment contractor for
detoxification. (Still waiting to deliver low concentration items per
JESCO treatment policy.)✩✩■ Complete detoxification of all PCB-containing equipment during FY2009 as JESCO program begins
in each region.

Reduced by 54.5% from base year and by 51% fromprevious year.

✩✩✩■ Rearrange targets during FY2008.

Achieved a 100% response rate in and outside Japan.

✩✩✩■ Install and expand GP-Web System to group production companies outside Japan.

Achieved 64.9%. (Target achieved one year ahead of schedule.)
Increased by 6.2% over previous year.

✩✩✩■ Set new targets during FY2008 (add monetary basis to number of purchases bases).

Reduced by 39% from base year and by 1.4% from previous year.

✩✩■ Revise target year of FY2008 for a 50% reduction and reestablish during current fiscal year.
(Due to effect of changes in integrated schedule of distribution bases in Japan.)

Increased by 3.3% over base year and by 6.7% over previous year.

●■ Expect CO2 increase due to increased sales of digital cameras. ■ Push for a reduction of about
2,800 tons-CO2 by moving ahead with smaller packaging for digital cameras in FY2008.

Company Data

Situation remains worse than base year at 52 tons of emissions, same as previous year.

Casio and Society✩

Reduced by 12.8% from base year and by 19.0% fromprevious year.

Reduced by 3.9% from base year and by 1.3% from previous year.

Casio and Employees●

Reduced by 26.5% from base year and by 21.9%
from previous year.

Same level as base year, and down 4.1% from previous year.

Casio andthe Global Environment

Performance by end of FY2007✩✩: Target not achieved, but steady improvement made over previous fiscal year.
●: Same as or worse than base value.

Casio Corporate Report 2007

39

Casio and the Global Environment

Material Balance of Business Activities
Below is a report of the lifecycle inputs and outputs of all of Casio’s business activities.
In fiscal 2007, the following two items were added to the
Casio Environmental Action Plan:● Reduce emission of volatile organic compounds (VOCs) tothe atmosphere.
● Reduce output of PRTR substances.
The group’s output of VOCs remained the same as theprevious fiscal year (fiscal 2006), while its output of PRTR
substances dropped 51% from the previous fiscal year.

The scope of this report changed in fiscal 2007 with theaddition of two sites in Japan (Seiyo Electronics Corporationand the Casio Micronics Second Plant). Outside Japan, theintegration of Casio Electronics (Zhongshan) and Casio
Electronics (Zhuhai) into Casio Electronic Technology(Zhongshan) expanded the scale of business operations andresulted in both increased energy inputs and higher CO2
emissions.

Material balance of business activities in fiscal 2007

Inputs

Outputs

Energy 60,382 (crude oil equivalent) kL

Greenhouse gases
R&D/design

Electricity 193.35 million kWh

CO2 emissions 115,483 tons-CO2
SF6 emissions 21,140 tons-CO2

Fuel 11,272 (crude oil equivalent) kL

Air pollutants*1
Water resources 3.342 million m3

NOx 77 tons

SF6 (sulfur hexafluoride) 2 tons

SOx 22 tons
Dust 2 tons

VOCs 211 tons
Paper usage 803 tons

Procurement

VOC emissions to atmosphere 52 tons
Wastewater 2.610 million m3

PRTR substance input 183 tons

BOD 36 tons
Releases and transfers of PRTR
substances 94 tons

Parts and materials 25,113 tons

Releases 18 tons

Manuals 4,406 tons

Transfers 76 tons

Recycled material 173 tons

Generated waste, etc. 8,417 tons

Packaging material 13,090 tons

Manufacture

Waste 6,738 tons
Valuables 1,679 tons

Recycled material 10,215 tons

Landfill disposal 658 tons
Recycled waste*2 6,320 tons

Recycled industrial water 263,000 m3
Reused plastics 6 tons

Distribution*3

CO2 emissions*4 112,368 tons-CO2 equivalent
Total products sold 150 million

Sales
TFT-LCD packaging 16 tons
Electricity 32.38 million kWh

Use*5

Recovered

Recycled
System equipment from corporate
customers 31 tons

System equipment from corporate
customers 40 tons
Household PCs 0.2 tons

CO2 emissions 13,655 tons

Recovery/recycling

Household PCs 0.2 tons

Label printer tape cartridges 3 tons
Drums and toner cartridges 649 tons
Rechargeable batteries 1 ton■ Material balance for business sites ■ Material balance for products

Material Balance for the Electronic Components
Segment and the Electronics Segment

40

Casio Corporate Report 2007

Label printer tape cartridges 3 tons
Drums and toner cartridges 655 tons

*1. Ozone depleting substances have been fully phased out.
*2. Recycled waste includes thermally recycled material.
*3. Product distribution is consigned to transportation companies.
*4. Distribution in Japan is calculated using the improved ton-kilometer method.
*5. The computation parameters for use were revised according to a detailed classification of products.

Corporate Profile

Initiatives to Prevent Global Warming
Global warming is undeniably progressing. Casio is doing everything in its power to contribute to asolution. Casio sees the reduction of CO2 emissions as a vital necessity for maintaining the viability of lifeon Earth.

Reducing CO2 Emissions at
Production Sites

Efforts to Reduce a Greenhouse
Gas (SF6)

20% reduction
0.23

0.240

0.160

0.080

35,000

0

0.320

0.18

88,922

85,64081,87980,672

77,98973,06789,3180.24 0.24

0.23
70,000(tons-CO2/¥ million)

2001

2002

2003

2004

2005

2006

2007

2008

2009

Emissions per unit of actual production

Base year

105,000

Emissions per unit ofactual production

0.000
2011 (FY)2010

Casio andthe Global Environment

CO2 emissions

0.27

0.29 0.30

Target year

CO2 emissions(tons-CO2)
140,000

Casio and the Market

CO2 emissions and emissions per unit of actual
production (in Japan)

Kochi Casio uses SF6 in the etching process during TFT
panel manufacturing. The company purchases a little lessthan 2 tons per year. But, because the global warming
potential of SF6 is 23,900 times greater than CO2, it accounts
for nearly 20% of the greenhouse gases, including CO2,
emitted by the Electronic Components segment of Casio
Computer Co., Ltd.
Reducing SF6 emissions is therefore an extremely
important issue for Casio Computer Co., Ltd., overall. The
Hachioji R&D Center is exploring three technologicalsolutions for reducing SF6 emissions during the TFT
manufacturing process.
1. Developing a dry etching process using an alternative gas
with a lower global warming potential.
2. Installing SF6 scrubbers.
3. Recycling SF6.
Consideration of alternative gas processes started in
2004, and a new gas has been selected for potential use.
The Center has also begun considering the installation of
SF6 scrubbers and recycling equipment.
The Center expects to finish developing an alternativegas process and evaluating various emissions reduction
equipment by the end of 2007. It plans to decide which
method will be used to reduce SF6 emissions, based on acomprehensive assessment of effectiveness and cost
performance, and to achieve its published goals infiscal 2011.

CSR Management

The target year for Casio’s energy conservation initiatives isfiscal 2011. In fiscal 2006, the group cut gross CO2
emissions at production sites in Japan by 396 tons-CO2.
Approximately 80% of CO2 emissions at production sites inJapan is accounted for by Electronic Components segmentsites. The reduction in fiscal 2007 was due to Yamagata
Casio switching to energy saving equipment and the effortsof other sites to conserve energy despite expansion of Casio
Micronics’ Yamanashi Plant and the inclusion of additionalsites, such as Seiyo Electronics Corporation, in the group’s
environmental impact data. Per-unit CO2 emissions were flat,
remaining significantly short of the per-unit emissions target
for fiscal 2011. Going forward, Casio will continue to devise
new measures to hit the newly established targets for eachsite, and will also look into emissions trading after assessing
the discrepancy.

CSR Highlights

Initiatives in Japan

Usage and Emissions of SF6, and Equivalent CO2
Emissions

Initiatives outside Japan

0

2006

0.35
0.30
0.25
0.20
0.15
0.10
0.05

2004

2007

2008

2009

2007

2008

2009

Alternative
Trial
Productgas
manufacturing evaluation
evaluation

SF6
scrubbingSF6
recycling

Equipment
investigation

Methoddetermination•Reduction
results•Processsuitability•Running costOrderequipment
Installation

2010

Reduceemissions to
below 2000
level
< 7,278 tonsCO2/year* SF6 is a greenhouse gas targeted for reduction in the Japan Electronics
and Information Technology Industries Association’s (JEITA) voluntaryaction guidelines. Casio has already fully phased out the target gases
PFCs and NF3, and is working to eliminate SF6.

2010

2011

Emissions per unit of production

2005

0.31

0.25

Target year

Base year2003

24,25910,00019,48720,00015,080CO2 emissions

30,00010% reduction
0.32

2006

Company Data

40,0000.34

26,561

0.37

Reductionmeasures(tons-CO2/¥ million)
0.40

Emissions per unit ofactual production

CO2 emissions

0.36

23,798(tons-CO2)
50,000Measures and schedule for reduction of SF6

Casio and Society

CO2 emissions and emissions per unit of actual
production (outside Japan)

Casio and Employees

Fiscal 2007 CO2 emissions at sites outside Japan, of whichapproximately 78% is accounted for by production sites,
increased by about 2,300 tons-CO2 compared to theprevious fiscal year. This increase was due mainly to
expanded production following the consolidation anddecommissioning of Casio Electronics (Zhongshan) andCasio Electronics (Zhuhai), which had become too small, into
a new plant, Casio Electronic Technology (Zhongshan). On a
per-unit of production basis, the group cleared its target of
0.31 tons-CO2/million yen due to an increase in total
production outside Japan. Going forward, Casio willreconsider the targets for each site and keep pushing its
energy conservation initiatives ahead.

0.00
(FY)

Casio Corporate Report 2007

41

Casio and the Global Environment

Initiatives to Comply with Environmental Laws
and Regulations
In addition to observing laws and regulations, Casio undertakes voluntary efforts to ensure thorough risk
management of chemical substances.

Risk Management and Reduction
Policy for Chemical Substances
Risk management of chemical substances can be divided
into the control of chemical substances used during the
production process and the control of chemical substances
included in products.
More specifically, the categories include:
1. Risk management of chemical substances used during
the production process• Health effects on people engaged in productmanufacturing• Health and environmental effects on neighborhood
residents and the local area
2. Risk management of chemical substances included
in products• Health effects on customers while using the products• Environmental effects after the products are disposed
Casio controls these chemical substances appropriately
and is striving to replace them with chemical substances thathave lower risks.
In fiscal 2007, Casio established the following new
objectives for the reduction of chemical substances:● Reduce output of PRTR substances.
● Reduce emissions of VOCs to atmosphere.
Five sites—Casio Micronics (First and Second Plant,
Yamanashi), Kofu Casio (headquarters), and Kochi Casio—in Casio’s Electronic Components segment account for over
99% of Casio’s usage of these PRTR substances and
VOCs. Casio will reduce their usage to achieve its fiscal
2011 targets.

Environmental Laws and Regulations
Related to Products (Laws and Regulationsfor Hazardous Substances)
Complying with RoHS: From Europe to China
By June 2006, Casio had made products bound for Europe
compliant with all items in the EU’s RoHS Directive. Then, in
December 2006, Casio finished making its products for all
destinations, except for some special purpose products,
compliant with the directive.
Unlike the EU’s RoHS Directive, the new Chinese RoHS
(Measures for Administration of the Pollution Control ofElectronic Information Products) does not prohibit the use of
the regulated substances; rather, it mandates that
information on regulated substances contained in all parts
must be provided to customers. The Chinese RoHS does notinclude exceptions for parts for which it is technologicallydifficult to make alternatives. Accordingly, information on the
inclusion of regulated substances in all parts must be added
to users’ manuals, marks indicating the inclusion of regulated
substances must be affixed to the bodies of products, andthe date of manufacture and a recycling mark must be
displayed on packaging. Casio was fully compliant by
February 2007.
What is the Chinese RoHS?

42

Casio Corporate Report 2007

Overview of Chinese RoHS
Chinese RoHS
Effective date
March 1, 2007
Subject substances Six RoHS substances
Subject productsElectronic and electricaldevices and components

Manner ofenforcement

Products manufactured on
or after March 1, 2007
must carry a markindicated whether they
contain or do not containthe regulated substances.

Marks that must be displayed

Does notcontainsubstances

Contains
substances

Complying with REACH
The Registration, Evaluation, Authorization and Restriction ofChemicals (REACH) regulation, promulgated in June 2007,
requires companies to track 30,000 chemical substances
contained in chemical products and nearly 1,500 chemical
substances contained in various articles. This regulation
cannot be managed with conventional green purchasing
practices and will require a completely different program.
Casio is looking into a management system (a new chemical
substance management database) for streamlining
compliance with this regulation without causing confusion inor outside the group, while considering coordination withrelated industries.

Environmental Laws and Regulations
Related to Production Sites
Reducing releases of PRTR substances
In fiscal 2007, Casio used 183 tons and released 18 tons ofchemical substances subject to Japan’s Pollutant Release
and Transfer Register (PRTR) Law. Casio controls thesesubstances on a per-unit of actual production basis as anindicator of release reductions. In fiscal 2007, this figure
reached 0.00005 tons/million yen, thereby achieving the
fiscal 2011 target of 0.00010 tons/million yen. Accordingly,
Casio plans to establish a new reduction target during
fiscal 2008.
Releases of PRTR Substances

Reducing VOC emissions
In fiscal 2007, Casio used 211 tons of VOCs and emitted
52 tons to the atmosphere. The Electronic Components
segment accounts for nearly 100% of this usage. Casio
will continue to reduce emissions by improving
manufacturing processes and equipment and by increasing
production efficiency.
VOC Inputs and Emissions to the Atmosphere(Japan production sites)Corporate Profile

Initiatives to Reduce the Environmental Impactof Products
Casio is a leader in energy-saving designs, which enables it to produce products with high energy efficiency.
At Casio, energy conservation is part and parcel of the effort to improve overall stakeholder satisfaction.

Energy-saving Design:
Solar-powered Watch

N6000(conventional)

N3500

Reduction

Warm-up

99 seconds

30 seconds

70%

Printing

930W

560W

40%

Alert

290W

80W

72%

Standby

150W

80W

47%

Sleep

25W

10W

60%

Mode

Total (TEC comparison)

62%

CSR Management

Compare the energy use of a light bulb to that of a solarpowered radio-controlled watch: the energy consumed by
one 54 W silica light bulb could power about 6.75 million of
Casio’s solar-powered radio-controlled watches. This
comparison with an everyday product highlights the efficacy
of Casio’s energy-saving design for solar-powered radiocontrolled watches.

Comparison of energy use
CSR Highlights

Casio has been creating energy-saving designs for half acentury. Today, the group offers Casio Green Products
which deliver high-speed computing on less energy andenable long-lasting viewing of beautiful, vivid images. This
page introduces success stories in the reduction ofenvironmental impact—a solar-powered radio-controlled
watch and a page printer—from the user’s perspective.

Ecology
The N3500 complies with international environmental
standards such as the RoHS Directive (hazardous substanceregulation), Eco Mark, the International Energy Star Program,and the Japanese Law on Promoting Green Purchasing.

Casio and the Market

Comparison of energy use
54 W
silica light bulb

Solar-powered
radio-controlled watch

Label (mark), most ofwhose certified
products comply withJapan’s Law on
Promoting Green
Purchasing

Eco Mark certification number:
03122009

Casio andthe Global Environment

As an International
ENERGY STAR partner,
Casio Computer Co.,
Ltd., has determinedthat this product meets
the ENERGY STAR
guidelines.

Recycling

EconomyThe N3500 can spark an office revolution by realizing energy
savings in each mode during use.

Recycling diagram
Recover all
cartridges

Customers

Casio

Sell toner

N3500

¥

¥

Full color

Monochrome

About ¥11.1 About ¥2.8

N3000

¥

¥

Full color

Monochrome

Casio and Society

The N3500 page printer delivers superior economy alongwith energy savings. This, and its compliance withenvironmental standards, toner recyclability, and small
footprint, can be shown with a comparison to theconventional N6000 model.

Casio and Employees

Energy-saving Design:Page Printer (N3500)

In July 2005, Casio started its own resource recycling
recovery program. By completely recovering tonercartridges, which are a consumable item, Casio maximizes
its resource recycling rate and reduces customers’ operating
costs. With the N3500, one monochrome sheet prints for lessthan ¥3 and one color sheet prints for about ¥10.

Reduce cost with “Return Toner Cartridge”

About
6.75 million“Return Toner Cartridge” program

One

About ¥13.0 About ¥3.2

Size comparison
N6000(conventional)

N3500

Reduction

Width

695mm

590mm

15%

Depth

655mm

539mm

18%

Height

497mm

388mm

21.9%

Weight

72kg

45kg

37.5%

Volume

0.23m

0.12m

47.8%

3

3

Casio Corporate Report 2007

Company Data

Size

43

Casio and the Global Environment

Reducing Waste and Usage of Water Resources
Casio strives to convert waste to valuable resources, and works hard to promote recycling and reuse.
Priority efforts include recovering parts for maintenance use from end-of-life products, and improving
resource recovery throughout the supply chain.

Waste Reduction Policy
Casio is committed to implementing the “3 Rs” (reduce,reuse, and recycle) and seeks to minimize waste generationand landfill disposal in order to help create a sustainable
society.
● All Casio business activities include programs designed toreduce the amount of waste generated, to convert what isleft to valuable reusable resources, and to ensure zero
landfill disposal.
● Casio products feature resource-saving designs based on
the 3 Rs to ensure greater reutilization of resources.

Reducing waste generated by business activities
In fiscal 2007, Casio generated 8,417 tons of waste, 4,728 ofwhich came from its Electronic Components segment and3,689 from its Electronics segment. In response, the group is
implementing the following measures to reduce thegeneration of waste in the Electronic Components segment.
1. Improving the manufacturing process conditions.
2. Increasing production efficiency by improving capitalutilization and yield.
3. Reducing the volume of waste through volume
reduction processing.
4. Converting waste to valuable resources throughcomplete separation.
In fiscal 2006, Casio Micronics (Yamanashi) installed
dehydration waste compacting equipment for reducing thevolume of waste alkali liquid. In fiscal 2007, Kochi Casio
created 355 tons of valuable reusable resources throughseparation and recovery of waste stripping liquid.

Recovery of consumer products
Casio Business Services operates a growing business in therecovery of parts for maintenance use from products
returned by consumers in Japan for various reasons. Before,such returned products were simply disposed of as waste.
Since fiscal 2005, the push to recover parts for maintenanceuse has resulted in a monetary conversion rate*1 of 44.5%
and a parts resale rate*2 of 90%.
*1. Monetary conversion rate: An index that expresses the ratio of themonetary value of parts from returned products that can beconverted to parts for maintenance use to the monetary value of
non-repairable parts that cannot be converted.
Monetaryconversion rate (%) =Monetary value of maintenanceparts conversion
Monetary value of
non-repairable parts× 100*2. Parts resale rate: An index that expresses the percentage of parts
from returned products that are convertible.
Parts resale rate (%) =Number of parts that can be
resold in a month
Number of products
recovered in previous month

× 100● Recovery and recycling of used computers and system equipment from
corporate customers
Recovery

Recycled goods● Recovery of used drum toner modules

RecoveryReuse● Recovery of consumer products
Reuse
RecoveryRecovery and recycling (in Japanese)
http://www.casio.co.jp/csr/env/recycle/

Pay
money

Landfill
Waste
RemovalRecycled goods
Receivemoney

Generation
Valuable resources

Recycled goods• Generation of Waste, Volume of Landfill Disposal, andWaste per Unit of Actual Production (all sites in Japan)• Generation of Waste, Volume of Landfill Disposal, andWaste per Unit of Production (production sites outside Japan)

Reducing waste from products
Recovery of used computers, system equipment, and drum
toner modules from corporate customers
Casio is working to reduce waste by recovering usedproducts from customers.

44

Casio Corporate Report 2007

Reducing Usage of Water
Resources
In fiscal 2007, Casio used 3,342,000 m3 of water resources.
Of this amount, 2,765,000 m3, or about 83%, was used by
five electronic component sites—Kochi Casio, Kofu Casio(headquarters), and Casio Micronics (First and Second
Plant, Yamanashi)—and two electronics sites—Casio
Electronic Technology (Zhongshan) and Jiu Shui Keng Casio
Electronics Factory. These sites are making an effort to
reduce their usage of water resources by using recycledwater. In fiscal 2007, they used 262,900 m3 of recycledwater, corresponding to 9.5% of their water usage.
• Usage of Water Resources and Recycled Industrial
Water, and Use per Unit of Actual Production(Japan production sites)• Usage of Water Resources and Recycled Industrial
Water, and Use per Unit of Production(production sites outside Japan)• Usage of Paper

Corporate Profile

From Eco-product Design to Next-generation
Eco-product Design
Casio is moving from conventional eco-product designs to next-generation eco-product designs thatbroaden design considerations to cover an array of issues, including the problem of resource depletion.

From Green Products to Nextgeneration Green Products

Developing transparent conductive film material

Casio assesses all of its products against its own Green
Product Development Guidelines at each stage of planningand design. Products that meet the environmental designand eco-product criteria are approved and certified as Casio
Green Products.

Casio sees life cycle assessment (LCA) as an important tool.
LCA is excellent for identifying potential ways to reduce
environmental impact at each stage of the product life
cycle—including procurement of raw materials,
manufacturing, distribution, use, disposal, and recycling.
LCA also helps to ensure the accountability of improvement
efforts. Its downside, however, is being time-intensive. Casio
pursues efficiency by using the best LCA assessment
method for each different purpose.

Casio and Employees

ISO type III environmental labeling
One of Casio’s data projectors has acquired
the Eco-leaf Environmental Label granted by
the Japan Environmental Management
Association for Industry. The Label program ishighly objective and enables comparisons of
products within the same category.

Eco-leaf
Environmental
Label

Casio and Society

In addition to slowing the depletion of global resources, theR&D of alternative materials to replace rare metals
represents the pursuit of sustainable technology that will
ensure resources for future generations and help maintainbiodiversity.
New alternative materials have significant hidden
possibilities as raw materials suited for energy- andresource-efficient industry, in that they could potentially
improve the device manufacturing process and simplify
manufacturing equipment.
Casio sees this R&D as a highly advanced effort tosecure and effectively utilize rare resources at the far
upstream end of the supply chain.

Making the Most of LCA

Casio andthe Global Environment

Sustainable technologies

Casio’s target for the percentage of Casio Green Products intotal sales was to reach 70% by fiscal 2008, but the group hit
70.5% early in fiscal 2007. Casio has thus set itself the midterm goal of developing “Next-Generation Casio Green
Products” by expanding the scope and number ofassessment items and formulating new standards that add
the following criteria to the existing guidelines.
1. Employs sustainable technology.
2. Meets top level standards.
3. Leads green marketing.

Casio and the Market* See page 28 for a “Links between research themes.”

Next-Generation Casio Green Products
CSR Management

Indium tin oxide (ITO), a transparent oxide film made ofindium and tin, is used as a transparent conductive film
material in LCDs.
Indium is a rare metal whose production is very limited
and whose reserves are unevenly distributed. For thisreason, there are worries over its depletion and concerns
about stable supplies, making the development of alternativetechnologies to ITO transparent conductive film material asubject of importance to various nations.
Zinc oxide (ZnO) is gaining attention as an alternativetransparent electrode material to ITO.
Specifically, Casio is conducting R&D to realize theapplication of a ZnO film as a transparent electrode material
in LCDs and other products. The ZnO film, developed byProfessor Tetsuya Yamamoto of the Kochi University ofTechnology, boasts a high transmission rate and fast deposition. In addition to its application as a transparent electrodefilm, this ZnO material has potential applications in various
semiconductor devices as a compound semiconductormaterial. R&D on its applications in ultraviolet light emitting
diodes (LED) and solar cells is also being conducted in agovernment-related “Collaboration of Regional Entities for the
Advancement of Technological Excellence.” Casio Computer
Co., Ltd., and Kochi Casio are participating in this project,focusing on the R&D of applications for this new ZnO transparent conductive film in LCDs.

CSR Highlights

R&D to Find Alternatives for theRare Metal Indium

LCA in product environmental assessments

Casio Corporate Report 2007

Company Data

Casio has adopted the LCA method to evaluate theenvironmental impact of cellular phones. During the LCA, it
conducts assessments specific to raw material procurement,
product use, disposal, and recycling, evaluating
improvement compared to products in the same category.
Going forward, Casio will expand the scope of products
assessed.

45

Casio and the Global Environment

Environmental Accounting

economic effect, including customer effects, of ¥567 million.
Indicators of the environmental efficiency of sales—CO2
emissions, waste output, and use of PRTR substances—all
improved.

Overview of Fiscal 2007
Performance
In fiscal 2007, capital investment under environmental
conservation costs came to ¥941 million with theconstruction of a new environmentally conscious plant,
featuring a super-insulated building, highly efficientmachinery, green space, and a water recycling system, for
Casio Micronics (Yamanashi). Environmental costs totaled¥2,094 million for upgrading energy-saving equipment andwastewater treatment facilities, maintenance, waste andrecycling, and other measures.
The follow-on economic effects were ¥121 million in costsavings and business revenue of ¥282 million from therecovery and recycling of toner and parts, resulting in a total

Using Environmental Accounting
to Increase Accountability
Casio will step up its use of environmental accounting withthe aim of reducing medium-term environmental impact. In
the near future, it will use the detailed results of the costbenefit analysis to measure the effects of each measuretaken and to move forward with the development of a groupwide feedback and accountability system.

Fiscal 2007 performance (April 2006-March 2007)

Business area cost

935

1,491

301

CO2 conversion
NOx
SOx
BOD
Soot and dust
Input of water
resources
Waste(1) Pollution
prevention cost

Prevention of air pollution, water pollution, noise, vibrations,foul odors, soil pollution, and ground subsidence

773

610

—

(2) Global environmental
conservation cost

Prevention of global warming and ozone depletion, andenergy conservation

159

579

116

(3) Resource
circulation cost

Resource conservation efforts, reduction of industrial andgeneral waste, recycling, treatment and disposal, and landfill

3

302

185

Upstream/
downstream cost

Green purchasing, recycling of products and packaging,recovery, and remerchandising

—

294

102

Administration cost

Acquisition of ISO certification, environmental education of
employees, environment monitoring and measurement, officeadministration, greening and beautification of business sites,and environmental information disclosure

4

289

—

R&D cost

R&D related to eco-products, the control of environmental impact
at the production stage, and the reduction of environmental
impact during the distribution and marketing stages

2

13

—

Social activity cost

Donations to groups that protect the environment, off-site
greening and beautification, and support for environmental
activities conducted by community residents

—

7

—

Customer effectEnvironment conservation and economic effects of customers’ use of Casio products
Annual power consumption reduction during product use × energy charges
Total

Environmental conservation
effect (reduction effect)(FY2006-FY2007)

941

2,094

164

567

Use of PRTRcontrolled
substances–2,001 tonCO2
61 tons
15 tons-2 tons
0 ton–27,000 m3
110 tons

Economic effect (breakdown)
Item

26 tonProfits

Details

Economic
effect(¥ million)

Cost savings

Environmental Environmental
investment
cost*(¥ million)(¥ million)

Reduction ofenergy use during 39,000 GJ*
product use(¥ million)

Energy cost savings throughenergy conservation activities

53

Water and sewerage savings andcopy paper purchase savings
through resource-saving activities

1

Waste treatment cost savings
through resource-saving or
recycling
Gas and scrubbing cost savings
through adoption of alternative
gases

67

Business revenue from recycling

282

Breakdown

Category bybusiness activity* Depreciation costs are included in the costs.

Reuse of partsand materials

83

Sale of parts, wastepaper,and waste plastic, etc.

199

Customer effect

164

Total

567

* GJ (gigajoule): the SI unit of energy(quantity of heat, quantity of work)

Main details of current term (Category of measure)

Category of measure

Global warming measures

Air quality conservation

Amount of environmental investment(¥ million)
Main details of current term

159

Installation of energy-saving equipment in new plant.
Increasing efficiency of and installing inverters forfluorescent lighting ballast (energy conservation).
Electrical power control system (energy conservation).

76

Foul odor countermeasures and installation of odor removal
equipment.

Noise and vibration measures

6

Conservation of the aquatic,ground, and geologic
environments

694

Waste and recycling
Natural environmental
conservation
Total

3
3

Installation of double-paned windows in buildings.
New wastewater treatment facilities.
Installation of rain water recycling system(measure to reduce use of public water supplies).

941

Casio Corporate Report 2007

Amount of environmental investment(¥ million)
Main details of current term
441

Maintenance of energy-saving equipment(air-conditioners, air compressors, chillers, and exhaust fans).

Ozone layer protection measures

33

Purchase of alternative chlorofluorocarbons and non-toxic solvents.

Air quality conservation

414

Asbestos removal.

Global warming measures

Noise and vibration measurement.

Noise and vibration measures

1

Conservation of the aquatic,ground, and geologic
environments

316

Operation and management of wastewater treatment facilities.

Waste and recycling

514

Recovery and recycling of toner and parts.

Chemical substances

87

Green procurement survey to comply with environmental laws
and regulations.

Natural environmental
conservation

15

Environmental maintenance such as greening and beatification of
on-site grounds.

Other

273

Preparation of environmental report, and ISO management.

Total

2,094

On-site planting

Detailed Data on Environmental Conservation Effects,
Detailed Data on Customer Effects

46

Category of measureCorporate Profile

Effects of certain projects
CSR Highlights

In conjunction with group-wide efforts, Casio’s business and other sites are also working independently to reduce environmental
impact. Shown below are some specific examples of investments made with a view to reducing environmental impact.

Example of effect in fiscal 2007 from investments made during fiscal 2005 and fiscal 2006
Investment theme

Category of measure

FY2007 gas scrubbing andtreatment cost-savings
FY2005-FY2006 investment

Global warming measures= 1.19Environmental effect and investment details

Switched CVD cleaning gas from NF3 to COF2 ➝Greatly reduced global warming effect by 2,500 times
1. Remodeling of production equipment; mixing
equipment
2. Installation of HF exhaust gas scrubber
3. COF2 cylinder cabinet

CSR Management

Adoption of COF2
as an alternative
gas to NF3(Kochi Casio)

Cost-benefit formula (economic effect indicator*)*An economic effect indicator of 1 or greater is considered a sign that the situation is favorable in terms of responsible environmental management.

Example of forecasted effect from investments made in fiscal 2007(environmentally conscious plant: constructed February 2007)
Investment theme

Category of measure

Environmental effectInvestment details● Water recycling rate 40%
Volume recovered (recycled) 14m3/h¥644 million

Total volume of wastewater 35m3/h

1. Water recycling equipment
2. Industrial sludge control equipment
3. Relay tanks
4. Central monitoring equipment

Casio and the Market

Construction of a newenvironmentallyconscious plant(Casio Micronics)

Investment amount

Environmentally conscious
wastewater treatment facility(conservation of the aquatic,ground, and geologic
nvironments)

1. Reduce the number of air compressors● Annual CO2 conversion reduction 3,604 tons 2. Air conditioning and air supply

Energy-saving air conditioning
and air supply equipment(global warming measures)

Annual energy reduction 9,533 MWh¥62 million

Calculated on the basis of existing plants(ductless air conditioning system, etc.)
3. Heat source equipment(high-efficiency turbo chiller, etc.)
4. Lighting(high-efficiency lighting fixtures, etc.)

Casio andthe Global Environment

Environmental efficiency of sales
Casio tracks the environmental efficiency of sales (in terms of CO2, waste, PRTR substances) as an indicator of the effectivenessof its environmental conservation initiatives. The calculation used is the value of sales per ton of environmental impact. An
increasing figure indicates improving environmental efficiency. Aiming to make the indicator rise, Casio will continue to
implement various measures and work to reduce its environmental impact.
Environmental
efficiency of =sales (waste)

Environmental
efficiency of=sales(PRTR substances)

Sales (¥ million)
Waste output (tons)*Tons-CO2: Various types of energy converted to their
CO2 equivalent amount and expressed in tons.

Casio and Employees

Environmental
Sales (¥ million)
efficiency of =CO2 emissions (tons-CO2)
sales (CO2)

Sales (¥ million)
Usage of PRTR
substances (tons)*PRTR substances are chemical substances specified inJapan’s PRTR Law (Law Concerning Reporting, etc., of
Release of Specific Chemical Substances to theEnvironment and Promotion of the Improvement of Their
Management).
4,000

90
6

5.11

5.38

5.11

60

75.1

3,000

73.8

68.1

3,392

3,055

2,777

2,000
30

2

0

Casio and Society

4

1,000

FY2005

FY2006

FY2005

FY2007

FY2006

559,006

580,309

CO2 emissions(tons-CO2)

109,432

113,482

Main measures to reduce CO2
Renovate air compressors
Increase efficiency of and install inverters
for fluorescent lighting ballast
Adopt COF2 as an alternative gas to NF3

FY2005

FY2007

FY2006

FY2005

FY2007

FY2006

620,769

Consolidated
sales (¥ million)

559,006

580,309

115,483

Waste generated,etc. (tons)

7,444

8,527

Main measures to reduce waste
Volume reduction treatment of waste alkalis
Reduce waste by reducing paper use

0

FY2005

FY2006

FY2007

FY2005

FY2006

FY2007620,769

Consolidated
sales (¥ million)

559,006

580,309620,769

8,417

Usage of PRTR
substances (tons)

183

209

183

FY2007Company Data

Consolidated
sales (¥ million)0

Main measures to reduce use of PRTR-controlled substances
Switch to alternative to 2-ethoxyethyl acetate
Discontinue painting process for resins

Scope of data compilation for environmental accounting: Casio Computer Co., Ltd., and consolidated subsidiaries in and outside Japan.
Reference guideline: Environmental Accounting Guidelines 2005, Ministry of the Environment, Japan
Casio Corporate Report 2007

47

Casio and the Global Environment

Green Procurement and Green Purchasing
To ensure peace of mind for customers, procurement at Casio adheres to the principle of verifying that allmaterials are both safe for people and easy on the environment.

Green Procurement
Revision of the Green Procurement Standard Manual
Casio has developed environmental management systems at
plants and practices green procurement based on standards
for the environmental performance of purchased items, with
the intention of ensuring that Casio products comply withlaws and regulations in and outside Japan.
In fiscal 2007, Casio achieved a 100% response rate
(percent of parts covered by supplier surveys) for green
parts in and outside Japan, one of its environmental action
plan targets. The group will continue to promote this target,
utilizing it to ensure the legal and regulatory compliance ofthe products it delivers in all places.
Going forward, Casio will transition to the practice of“CSR procurement” by adding social responsibility as aprocurement standard to its existing green procurement
standards. In so doing, the group is pursuing mutual
development and deeper relationships with suppliers,
which ensures that Casio will keep furnishing safe andreliable products.

Online green procurement system, GP-Web, adopted
Along with society’s growing concern over environmental
problems in recent years, environmental performancerequirements have become stricter with the introduction andstrengthening of environmental laws and regulations. As aresult, the list of green procurement standards has
increased, calling for the efficient practice of green
procurement including early collection of data and making
the status of surveys more accessible.
Accordingly, Casio has started to use a GP-Web systemand finished building a survey system covering 133
suppliers as of March 2007.
The adoption of the GP-Web system has, from theperspective of suppliers, made it possible to send responses
for individual parts in real time instead of the bulk responses
provided in the past. In addition, the ability to input data
directly to an online interface with an upload function has

GP-Web system flowchart

made it easier to respond to surveys. It is also possible foreach user to change the language of the interface between
Japanese, English, and Chinese.
As a next step, Casio is preparing to extend the systembeyond Japan (specifically, to China), and will ultimately also
put it into use at its production sites to reinforce the foundation of the group’s environmental management system.

Green Purchasing
Casio is committed to green purchasing, or the proactive
effort to purchase environmentally friendly indirect materials
such as stationery, office supplies, and office equipment(excluding software).
In fiscal 2007, one year ahead of schedule, Casio
achieved its goal of a 60% green purchasing rate*1 in fiscal
2008 at sites that have adopted the CATS e-P System*2, a
goal established in fiscal 2004.
In fiscal 2008, Casio will reconsider its green purchasingrate goals and expand the number of sites committed togreen purchasing in an effort to ensure that green
purchasing is practiced by the entire group.

Green purchasing rate
(in terms of number of purchases)
(%)

58.7

60

25.8

Designing

Non-chemical Cert.
Inspection

Guarantee (Parts + Mfr)

Entry

AccessNew Parts

0
FY2003

FY2004

FY2005

FY2006*1 Green purchasing rate (%):
Number of purchases of stationery, office supplies, and officeequipment (excluding software) with an environmental markNumber of purchases of stationery, office supplies, and officeequipment (excluding software)

SurveyGuarantee

Engineering

Supplier
Internal Collaboration

Application

Marketing

Provide ID/PW

Counterpart and
Reply Tool
Upload Reply

CSV

GP-WEB

Assessment
GP WEB Reply Data

Chemical Content

WEB Reply

1st Supply
SourceA Dept/Company

Quotation Request+

48

Casio Corporate Report 2007

2nd Supply
SourceC Dept/Company

D Dept/Company
WEB Reply

3. Transaction

EXCEL Reply Data

Reply

(ASSY)

Casio Green DB
EXCEL Data +GP-WEB Data

Order Place

Order Processing

EDI

×100

*2 Sites that have adopted the CATS e-P System:
Headquarters, Hamura R&D Center, Hachioji R&D Center, Eastern Japan hub
centers (Chiyoda, Sendai, Saitama, Yokohama, Chiba, and Special Sales
Office), and Western Japan hub centers (Nagoya, Osaka, Hiroshima, andKyoto) of Casio Computer Co., Ltd., and Casio Hitachi Mobile
Communications. Casio plans to extend this system to the entire group.

Supply Spec

Green Survey

FY200820

2. Content Survey

Purchasing

FY200736.7

DrawingSpecify Threshold

60.0

41.2
40

1. Threshold Guarantee

CASIO

64.9

Quotation
Order Receive

B Dept/Company

Corporate Profile

Environmentally Friendly Distribution andPackaging Materials
Casio is endeavoring to shift modes of transportation, improve packaging, and increase transportation
efficiency in order to reduce CO2 generated during product distribution.

Distribution

Packaging
Performance against fiscal 2007 targets and future initiatives

Plant/port ➝ Logistics C

2,397
373

2,525

2,460

2,417

597

635

554

554

530

550

2,000
569
1,500
1,000

8,000
7,000

1,614
1,144

1,080

1,085

1,139

10.0
5.0

6,000
5,000

500
0

12,600Logistics C ➝ Distribution C

Distribution C ➝ Customer

13,090Logistics C ➝ Customer

12,422

FY2007

12,284

FY2006

12,155

FY2005

10,708866

7.0

Casio and the Market

2,500

7.1

CSR Management(Unit: tons-CO2)
3,500
3,076
3,000
254

7.5

Casio is taking action to reduce the usage of packaging
material per unit of sales by 30% by fiscal 2008 compared tofiscal 2001.
In fiscal 2007, the usage of packaging materials per unitof sales was 21.1 tons per billion yen, 1.1% lower than theprevious fiscal year and down 23.7% compared to fiscal
2001.
In an effort to achieve its fiscal 2008 goal, Casio will continue striving to
Gross usage ofuse fewer
Per unit of sales
packaging materials(tons/ ¥ billion)
packaging(tons)
30.0
14,000materials and
21.1
24.3
19.4
13,000 27.6 27.8
23.2
25.0
22.0 21.4
to reduce CO2
12,000by decreasing
20.0
11,000the size of
10,000
15.0
product boxes.
9,000
10,627

Fiscal 2007 CO2 emissions in Japan were 1.8% less than inof the previous fiscal year and down 2.1% on a per-unit-ofsales basis.
*A 39% reduction compared to fiscal 2001.

12,270Fiscal 2007 CO2 reduction performance(Unit: tons-CO2/¥ billion)
12.0
10.0
11.4
8.0
8.0
6.0
4.0
2.0
0.0
FY2001
FY2004

CSR Highlights

Distribution initiatives in Japan

312

294

210

174

FY2001

FY2004

FY2005

FY2006

FY2007

FY2001 FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008

0.0* The figures for gross usage of packaging materials are paperbased, cardboard, plastic materials and polystyrene foam.

Casio andthe Global Environment

343*Finished products in Japan only, excluding the shipment of system products.

Initially, the target year was fiscal 2008, but it will bechanged due to the influence of schedule changes for the
integration of distribution bases in Japan.

Distribution initiatives outside Japan(tons-CO2)
120000109,951
1,683

96,373
1,611

80000

21,53025,32772,92669,43682,074

FY2005

FY2006

FY2007

Air

Sea

Rail

26,193

60000
40000

(Unit: tons-CO2/¥ billion)

180.0
175.0

20000
171.3

177.1

170.0

0

165.0
160.0

166.1
FY2005As legal and regulatory controls of packaging waste spreadworldwide, there is a need to make information relating to
distribution and packaging more centralized, accurate, andaccessible. For that reason, in fiscal 2007 Casio built a
database of packaging-related information and started
managing detailed information. Expanding this to include all
products has increased the efficiency of internal work and, atthe same time, enabled Casio to provide suppliers withinformation sooner.

Company Data

10000095,7591,303

Database of packaging-related information

Casio and Society

Fiscal 2007 CO2 emissions outside Japan were 14.1% morethan in the previous fiscal year and up 6.7% per unit of sales.
In the field of general merchandise, Casio reduced its
CO2 emissions by striving to reduce air transportation, but
increased sales of digital cameras—which are mainly
shipped by air—resulted in increased CO2 emissions.
However, in fiscal 2008, Casio expects to reduce CO2
emissions from the transportation of digital cameras by about
2,800 tons by further reducing packaging for all destinations.

Casio reduced its
usage of packaging materials by
about 30% byusing polystyrene
foam on only thefour corners ofelectronic instruments.
Further, an effort to decrease the size of boxes for all
products generated a space savings equivalent to 14 40-footcontainers, which increased transportation efficiency andcontributed to CO2 reduction.

Casio and Employees

Fiscal 2007 CO2 reduction performance

Example effort to improve packaging in fiscal 2007

FY2006

FY2007

Database of Packaging-related Information*Finished products

Casio Corporate Report 200749

Casio and the Global Environment

Environmental Communication
Casio proactively discloses environmental information in order to increase understanding of its
environmental conservation initiatives, and works closely with stakeholders to protect the global
environment.

Publishing Site Reports
In fiscal 2007, Kofu Casio, Casio Micronics, Casio Hitachi
Mobile Communications, Yamagata Casio, and Kochi Casio
each published a site report. (Three sites had publishedreports the previous year.)This yearly increase in the number of site reports being
published is underpinned by the desire to help neighborhood residents and suppliers understand Casio’s
commitment to the environment by proactively disclosing
environmental information to them.

Yamagata Casio

Kofu Casio

Casio Hitachi Mobile
Communications

Kochi Casio

Casio Micronics

Participating in the Environment-related
Committees of Industrial Associations
Casio does not limit itself to its own environmental
management efforts, but actively participates in the industrial
associations that represent its industries and theenvironment-related committees and subcommittees withinthose associations.
Following is a list of the representative associations andcommittees in which Casio participates.
● Japan Business Machine and Information System
Industries Association (JBMIA)• Environment Committee• Environment related subcommittees(five subcommittees)• Project groups, investigative committees,
and research committees● Japan Electronics and Information Technology
Industries Association (JEITA)• Environment Promotion Committee• Japan Green Procurement Service Standardization
Initiative

50

Casio Corporate Report 2007

• Display Devices Environment and Safety Committee
and working groups under the Display Devices Board● Japan Machinery Center for Trade and Investment(JMC)• Trade and Environment Committee• Specialized environmental committees (twocommittees)● Camera & Imaging Products Association (CIPA)• Environment Working Group● Japan Clock & Watch Association (JCWA)• Environment Committee
Casio cooperates with other companies in its industries
in an effort to disseminate information, including providing
information on the industries’ voluntary environmental
initiatives, expressing its opinions on environmental laws inand outside Japan, or responding to legal requirements
regarding products and services.
The results of these efforts are reflected in thedevelopment of Casio Green Products, in Casio’s
establishment of environmental performance goals, and ininternal environment-related standards.

Environmental Management
System (EMS)The Casio Environmental Conservation Committee, which
supervises Casio’s group-wide environmental management,
and the ISO 14001 certification system, which has been
adopted by each production and business site are the two
hubs of the group’s environmental management
system (EMS).
In the future, Casio will gradually expand the scope of its
EMS to include sales sites in Japan, service centers, andmarketing companies in and outside Japan, which had not
adopted an EMS, aiming for fiscal 2010.
By implementing a group-wide EMS, Casio will expand
the scope of its environmental management, ensure reliable
implementation of environmental management commitments,and expand and improve its global environmental communication by disseminating environmental information todifferent countries and regions.

● Alliances with other companies for planning,surveying, and research:
The example of Kofu Casio
Kofu Casio listened to thetroubles of the waste
treatment company it
contracts work to, anddeveloped, designed, andmanufactured a separator
for hamburger condimentcontainers. This resulted in
the separated aluminum
Separator for condiment containers
being recycled as a raw
material and the plastic
becoming a housing material. The cooperation of four
companies produced a recycling loop. (Taken from a Kofu
Casio site report.)

Corporate Profile

Participating in Exhibitions inand outside JapanCSR Highlights

Eco-products 2006
Display concept: Compact, Lightweight, Slim, and Energy Efficient
At the Eco-products 2006 Exhibition in December 2006, Casio introduced its group-wide
environmental initiatives with a stage presentation and by showcasing Casio Green Products—
environmentally friendly products that make use of the core competence Casio has developedin compact, lightweight, slim, and energy efficient technologies.

CSR Management

History of the electronic calculator
The history of the electronic calculator was presented in a visual
exhibit that allowed visitors to experience the history of Casio’s 50
years of developing energy-saving technologies.

Casio Booth at Eco-products 2006 (Photo)

Casio has participated in the Ecoproducts Exhibition every year
since it began (now eight times).
The number of visitors grows
steadily every year, and the exhibition has now become one of thebiggest in Japan. In the future, wewill continue to work with theEnvironment Center to communicate Casio’s environmental
initiatives to the public.

Casio andthe Global Environment*See page 58 for information about “Factory Tours for 10,000 People.”

Casio and the Market

Calculator assembly
experience
At the 2006 exhibition, Casio
again gave children a chance topractice building calculators inorder to give them an experience of the fun of putting
things together.
This hands-on learning experience offered at the Casio booth
reproduced part of a CSR activity undertaken at Casio group sites inJapan. It was conducted twice a day (morning and afternoon) for
three days.

Hiromi Yokomori
Casio Communication
Brains, Inc.

Casio and Employees

CES 2007 (Consumer Electronics Show)

Compared to Japan and Europe, I
feel that the American public has arelatively low awareness ofenvironmental conservation. That
is why it is so important for us toaggressively communicate Casio’s
environmental conservation
Hirofumi Hamashima
initiatives now. This year’s CES
Casio America, Inc.
was an efficient way for us to
improve people’s understanding of Casio’s
environmental initiatives—focusing on resource andenergy conservation.
We will keep working to convey Casio’s
environmental commitment to the public in the
United States.

Casio and Society

Casio held its first environmental exhibition in the United States at
the CES 2007 held in Los Vegas in January 2007. Casio’s unique“breakdown exhibition,” which displayed how and which parts in
Casio products are environmentally friendly, drew the attention ofmany visitors.
During the press conference conducted at the Casio booth, thecompany promoted its environmental initiatives, including supportof the Kids’ ISO 14000 program, which also drew a lot of attention.

Company Data

*See page 20 for information about Kids’ ISO 14000.

Casio Corporate Report 2007

51

Casio and Employees

Creating Employment Opportunities
Casio constantly strives to create opportunities for highly satisfying employment. In all of its interactions
with employees, Casio respects the human rights of individuals and refrains from discrimination based on
gender, disability, or other trait.
Regularly-scheduled hiring, by gender● Male(Casio Computer Co., Ltd.)

Employment Philosophy
and Policies

60

49

53

10

13

FY2006

FY2007

61

50

The Casio Code of Conduct states, “We respect others andvalue cooperation that is free of discrimination. We hold inhigh regard every individual’s human rights, eliminate
harassment, remarks and behaviors that are discriminatoryon the basis of gender, beliefs, religion, ethnicity, social
status or physical handicap, and protect the privacy of
individuals.” This is the most important standard for value
judgments in Casio’s hiring. Casio adheres to this philosophy
as it continues to create new employment opportunities.
Casio has also been working to increase job opportunities
internally by bringing in work that had previously been
contracted to companies outside the group.

Employment, by gender(Casio Computer Co., Ltd.)● Male■ Female

3,000
3,035

3,017

2,960

2,827

2,958

2,915

373

354

333

304

362

331

FY2002

FY2003

FY2004

FY2005

FY2006

FY2007

2,000
1,000
0

Employees worldwide, by region (as of March 31, 2007)
North America 2%
Europe 4%
Asia
40%

Japan
54%

Total number of
Casio Group
employees: 13,013

Employment-related initiatives
Based on the policies described above, Casio respects every
person’s human rights and individuality. Casio hires individuals who are highly motivated to work, irrespective of theirgender, creed, religion, ethnicity, social status, or disability.
In Japan, Casio supports the Charter of Corporate Ethics
issued by Nippon Keidanren (Japan Business Federation),and helps to minimize the impact on students’ learningcaused by the market tendency to hire them at extremely
early stages of the hiring season. Casio also tries to provide
career opportunities to as many students as possible inJapan by offering a diverse range of recruitment days andtimes. In addition to the traditional hiring information sessions,in fiscal 2007 Casio held seminars to foster students’ understanding of the working world and provided them with
opportunities to talk with many employees, in order to better
meet the needs of student job seekers. As a result, there
were 1.3 times more people hired to start work in the springof 2007 than the previous year, and 1.8 times more women
were hired. Employment initiatives like these are part of thereason that only 2% of the new graduates hired leave thecompany within the first five years, an extremely low turnoverrate. Casio also actively engaged in career position hiring infiscal 2007, and 3.6 times more people were hired for these
positions than the previous year.

52

Casio Corporate Report 2007

40

37

32

30

30

23

20
10
0

■ Female261

FY2002

FY2003

FY20040

2
FY2005

FY2008Hiring persons with disabilities
Casio actively seeks to hire individuals with the courage,
determination, and creativity to take on challenges andrealize their dreams, regardless of any disabilities they may
have. Presently there are 55 employees with disabilities
working at Casio Computer Co., Ltd. (1.5% of the workforce
as of March 2007). However, in order to reach Japan’s
legally required employment level of 1.8% as soon as
possible, an employment plan has been established for thehiring of persons with disabilities, and it is now being
implemented. In fiscal 2007, Casio visited schools forchildren with disabilities, participated in hiring events
sponsored by Hello Work (an agency of the Employment
Security Bureau of Japan’s Ministry of Health, Labour andWelfare), carried out online recruitment, and held on-the-job
training sessions. Casio is also improving its workplacefacilities to enable all employees to maximize their abilities
and aptitudes. Examples of such work include theintroduction of fully accessible lavatories at both the Hamura
R&D Center and the Hachioji R&D Center, as well as
measures to allow employees with disabilities to commute by
car to work. Casio will continue to build a work environmentthat is suitable for all people.
Recruitment website for applicants with disabilities(in Japanese)
http://www.casio.co.jp/saiyou/career2/policy.html

Hiring senior workers
Casio has been running its Casio Senior Staff Program (CSP)
since 2001, and in fiscal 2007, it introduced a new Senior
Employee Program at all group companies in Japan. The
purpose of both these programs is to provide retirement-age
employees who desire to continue working with employment
opportunities within the group, and to effectively utilize theskills and know-how that these personnel have accumulated
during their
Employment of senior workers
careers.
(Casio Computer Co., Ltd.)
Through these14
13
two programs,
12
11
Casio is further
10
expanding988employment
66opportunities for4
4seniors.
20
FY2002 FY2003 FY2004 FY2005 FY2006 FY2007•Average Number of Service Years by Gender•Number of Employees with Disabilities

Corporate Profile

Appointing and Effectively Deploying
Qualified Employees
Casio has built a sound corporate culture by appointing qualified employees through a fair process, using
a merit-driven system and a performance-based approach.

Philosophy and Policies

Human resource development
Casio has various programs for human resource development with the intention of developing creative employeesthat are eager to take on challenges and training professionals with early tracking into specialized fields.There are twobasic types of employee professionals at Casio. One is thestrategic generalist that passes on the company’s corporate
culture. The other is the technical specialist that passes on
the company’s unique technology and know-how.
Casio approaches the development of these employeeswith the philosophy that people grow through their work, andthat the source of growth is one’s own drive. Based on thisbelief, Casio supports its employees to grow and improvetheir skills by providing them with an environment in which
new abilities are constantly required. The company also
gives employees opportunities to rise to challenges by relying on their own determination and hard work.
For this reason, Casio’s system of human resource development is rooted in skills improvement through actual work,or on-the-job training (OJT). Various supplementary training
programs, including systematic study of theory, are alsooffered as off-the-job training (Off-JT).

Casio and the Market
Casio andthe Global Environment

Casio’s human resource system consists of threesubsystems: the Grade System, Appraisal System andCompensation System.The Grade System forms the base of
Casio’s human resource system. The Qualification Systemapplies to non-managerial employees, who are promoted
based on the growth of their ability to perform their duties.
The Professional System applies to managers andspecialists, who are graded and ranked based on theirindividual functions and accomplishments.
In the Appraisal System, employees are evaluated inthree areas, namely, target achievement under management

CSR Management

Human resource system

CSR Highlights

Casio’s human resource system is based on fairness anddesigned to maximize “Creativity and Contribution,” thecorporate creed. The company continually reviews its
personnel system, as it seeks to better reflect the changes inthe surrounding environment.
Under Casio’s merit-driven system, employees are
rewarded according to their demonstration of the abilities
required for their position, irrespective of their academic
background, age, or length of service. To complement this,Casio’s performance-based approach determines the grade
and compensation of employees based on the results they
actually achieve in their assigned roles. The objective of
Casio’s human resource system is to strike an optimalbalance between the development of employees under the
merit-driven system, and the growth of the company that is
facilitated by the performance-based approach.

by objectives, work performance (competency) in their job
type, and contribution made toward the department. The
evaluation is made on a five-point scale, relative to other
employees, and the results are reflected in remuneration.
Superiors discuss the evaluation results individually witheach employee in order to seek a high level of understanding. The Compensation System applies a salary range that isbased on job grade under the principle of a merit-based
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.

OJT

Off-JT
Training for selected
employees

Training for specificjob grade

Department
Manager
Rank 3
SeniorEngineer

Department Manager
Career Training

Multi
Evaluation
Systemfor Managers

SectionManager
Advisory
Engineer

Rank 2

Section Manager
Career Training

Chief
Engineer

Rank 1

Measures to train staff tomake them professionals

Measures for proper
deployment

Skill selective
training

Casio and Employees

Casio’s human resources development programsAwardsystem

Other

Staff
Entry-level

Mentor for
New Employee

Patent Award System

Techno Power/President’s Award

Training for Each Department/Professional Ability

Sales Training System for Engineers

CareerDevelopment
Training

Skill Selective Training

Job Posting System

Career Challenge System

Career Challenge: Advanced

Assistant Manager
Candidate Training

Advanced Technology Seminars/
Language Training/Correspondence Education

OJT-MAP

Assistant Manager
Career Training

Company Data

Senior Staff

Development
Evaluation
SystemCareer Roadmap

Supervisor

New Manager
Training

Casio and Society

Assistant Manager

Assessment of Job Performance

DivisionManager
Consulting Rank 4
Engineer

Follow-up Training
New Employee
Training

Details of Human Resource Development Programs
Casio Corporate Report 2007

53

Casio and Employees

Building a Supportive Work Environment
Casio is building work environments and systems that permit all employees to demonstrate theirfull potential.

Policies on Building Positive
Work Environments
Casio strives to build work environments that are friendly to
all employees so that every person can realize his or her
full potential.
As part of this effort, Casio is endeavoring to reduce thetotal annual hours worked by employees. The company isalso expanding support programs that help employees tomeet family obligations, such as taking care of children
and other family members, with special consideration forfemale employees.

Building a Supportive Work
Environment
VacationsWith the goal of shortening the hours worked by employees
each year, Casio is promoting an environment and culturethat encourages employees to fully utilize paid vacation time.
In fiscal 2007, an average of 21.8 paid vacation days
were offered to each employee at Casio Computer Co., Ltd.,and 59.7% of these days were utilized. The average numberof paid vacation days taken was 10.4 full days and 5.2
half days.
Casio also offers a Vacation Day Accumulation Program.
Under the program, when an employee is unable to work
due to injury or illness, 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.

Child and nursing care leave
Casio established its Rules Concerning Child Care Leave in1996 in accordance with the company’s employment
regulations. The rules are applicable to employees withchildren younger than one year, and have been continually
updated in response to changes in laws and theenvironment.
In addition, the Rules Concerning Nursing Care Leave
cover employees who have a family member requiring care.
These rules also have been revised as necessary since theirestablishment in 1999.

Employees taking child care leave
35

31
28

30

25

25
20

19

19
15

15
10
5
0

54

FY2002

FY2003

Casio Corporate Report 2007

FY2004

FY2005

FY2006

FY2007

Communication between Laborand Management
Through regular communication between management andthe labor 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
the Group Workers’ Labor-Management Conference, which
is held twice a year in September and February. At these
conferences, opinions from management and labor, together
representing the entire Casio 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.

Continued Support for Achieving a
Balance between Work and Family
Report by the Special Committee on Measures to Aid
the Nurturing of the Next Generation of Children
Casio has always worked on establishing various vacation
programs, including child and nursing care leave, so that all
employees may demonstrate their full capabilities in a work
environment that accommodates their needs.
With the implementation of the Law Concerning thePromotion of Measures to Aid the Nurturing of the Next
Generation of Children in April 2005, Casio set up theSpecial Committee on Measures to Aid the Nurturing of the
Next Generation of Children, in order to do more to help
employees achieve a good balance between work andfamily life. The committee has established a new action plan,
shown below. The goal is to encourage the taking of paid
time off, improve the system for child and nursing care leave,
and to incorporate the opinions of employees into the action
plan for the next period.
Action Plan II: April 1, 2007 to March 31, 2009
Target 1: To create an environment that encourages employees toutilize vacation time, and make more leave available for
special purposes.
Target 2: To normalize the use of child or nursing care leave, andimprove the system.
Target 3: To ensure workers returning from childcare leave arereintegrated smoothly.
Target 4: To improve awareness of Measures to Aid the Nurturing of
the Next Generation of Children.

In fiscal 2007, Casio made a special effort to encourage
employees to take planned paid vacation. The company also
worked on improving employee awareness of the child andnursing care leave system and considered new support
measures for those on leave by soliciting input from all
employees.
Based on the employee opinions gathered, in fiscal 2008
Casio aims to further expand the leave system, to improve
workplace awareness of activities for nurturing the next
generation, and to popularize use of its various leave
programs. In all these endeavors, Casio aims to make its
work environments as supportive of employees as possible.

Corporate Profile

Initiatives for Occupational Health and Safety,
and for Health Management
Casio is taking a variety of steps designed to help maintain and improve employee health and prevent
occupational injuries.

Basic Policy

Mental health care
In April 2006, measures for promoting workers’ mental healthwere added to the mandate of the industrial healthcommittees called for by Japan’s Industrial Safety and
Health Law. Through the holding of special seminars for
managers, Casio is raising awareness of mental healthissues. Employees can also discuss their personal healthconcerns at the company clinics, or by using the external
Physical and Mental Health Hotline. In November 2006, anoverseas version of the hotline was established for Casio
employees posted outside Japan.

Casio and the Market

The Casio Occupational Safety and Health Committee
complies with the requirements of Japan’s Industrial Safety
and Health Law. The committee is comprised of industrial
physicians, occupational health managers, andrepresentatives of labor and management. It promotes
policies to keep employees physically and mentally healthy
and to ensure occupational safety. The committee conducts
workplace inspection tours and holds regular meetings, andthe details of both are published on the company’s intranet.
It plays a central role in Casio’s efforts to raise awareness ofhealth and safety issues.

CSR Management

Occupational health and safety activities

CSR Highlights

Based on Japan’s Industrial Safety and Health Law, various
other legal requirements, and Casio’s employment
regulations, the entire Casio Group is dedicated to building
an environment that ensures employees can work with peaceof 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 group companies outside Japan incompliance with each nation’s laws and regulations.

With the cooperation of the Health Insurance Union,
employees are receiving more health information throughvarious seminars.
Through thesupport of various
companies thatprovide catering
services to Casio,
the employee
cafeterias provide
healthy menu
choices featuring abalance of calories
Wellness Fairand nutrition.
Wellness Fairs are also held at all Casio cafeterias.

Casio andthe Global Environment

Preventing occupational injuries

Casio and Employees

Online activity report from the Casio Occupational Safety and Health Committee

Casio is committed to the goal of zero occupational injuries
and operates regular safety programs with the aim ofmaintaining an accident-free record at all Casio work sites. In
addition, each site
and group company
conducts fire anddisaster prevention/
evacuation drills, aswell as general
lifesaving classes toensure emergency
preparedness.
General lifesaving class

Occupational injuries at Casio Computer Co., Ltd.
(last 5 years)
Injuries on the job

Injuries during commute

FY20034

3FY200474FY200592

FY200610

6FY2007

7

4

Casio Corporate Report 2007

Company Data

Casio offers annual health checks to all employees, and thenumber of items covered by the checks has been
increasing. Casio also emphasizes the importance of
secondary checkups andother health follow-up.
From September toNovember, 2006, Casio
held a Walking Campaign tohelp maintain and enhance
employee health as well as
prevent lifestyle-relateddiseases. Casio made a
Health advice at a Senior Life Style Seminar
point of encouraging
employees and their family members to participate.

Casio and Society

Promoting employee health55

Casio and Society

Social Contribution Initiatives
Casio fulfills the full range of its responsibilities to society by making the most of its proprietary know-how
and management resources.

Philosophy on Social
Contribution

Total value of research grants awarded by Casio
Science Promotion Foundation
1,120

1,200

True to its founding corporate creed of “Creativity andContribution,” Casio seeks to contribute to society byproviding products and services that give people joy
and wonder.
Casio pursues social contribution initiatives in five key
areas: (1) environmental conservation to protect the planet
and all life on it; (2) education to foster the next generation of
future leaders worldwide; (3) culture and arts to foster
spiritual growth; (4) study and research that contribute to thesustainability of society; and (5) community activities befitting
a responsible member of each local neighborhood.
The Charter of Creativity for Casio and Casio Common
Commitment emphasize the concept of give and take. Casio
believes it must first consider what it can do for others, andwhat kind of contribution it can best make to society.
Casio’s awareness of what it must do as a good
corporate citizen is also shaped by communication with all
kinds of stakeholders. Casio’s original creativity, combinedwith the good input of its stakeholders, has resulted in aunique range of social contribution initiatives, each of whichplays a role in helping Casio fulfill its responsibilities tothe world.

Activities of the Casio Science
Promotion Foundation
The Casio Science Promotion Foundation was established in1982 by the four Kashio brothers, and the late former
chairman, Shigeru Kashio. The foundation’s main focus is on
assisting cutting-edge, creative research in the early stages
conducted by younger researchers. Every year, assistanceis given to approximately 40 projects. In addition,
approximately 10 grants are awarded to send Japanese
researchers abroad and 10 more to host research meetings.
In fiscal 2007, 46 research projects received grants,
totaling ¥51.99 million. The recipients included Professor
Takayuki Sato of Kochi University, Professor Haruhiko
Yamamoto of Yamaguchi University, and Research Assistant
Kenta Miura of Gunma University. The grants were awarded
to the recipients at the 24th presentation ceremony held on
December 1, 2006. The foundation has awarded 880 grants
since its inception, totaling ¥1.122 billion.

Total amount (¥ million)

1,020
920

1,000
810
710

800
610
510

600
410
320

400
230
150

200
0

2

4

6

8

10

12

14

16

18

20

22

24

(Year since inception)◆ New Steps for the Foundation ◆The environment in whichassistance foundations operate ischanging. To respond to thischange, in fiscal 2007 we launched
the two pilot projects described
below in an effort to make thefoundation’s activities easier for the
public to understand.

Iwao Tahara
Secretary General
Casio Science Promotion
Foundation

1. Implementing new assistance categories basedon special themes
During the foundation’s 23 years of operation, the numberof categories in which assistance is granted has increased
to 21. These categories have become the basis of thefoundation’s activities, so it is not easy to change them.
On the other hand, the research environment has beenchanging dramatically, even in the field of basic research.
The privatization of Japan’s national universities beginningfrom April 2004 is one example of these changes.
Therefore, an important role of the foundation is to meet theneeds of researchers applying for assistance, while flexibly
adapting to the changing situation.
As a result, we have introduced a mechanism to enable
the relatively easy establishment of new assistancecategories, each fiscal year, or every three to five years.

2. Research presentations by grant recipients
Website of the Casio Science Promotion Foundation(in Japanese)
http://www.casio.co.jp/company/zaidan

56

Casio Corporate Report 2007

In the past, the relationship between the foundation and theresearcher was essentially ended one year after issuing the
grant, at the point when the research report was submitted.
To improve this situation, the secretariat now follows up on
the results produced by the researchers, and provides
them opportunities to visit and give lectures on topicalsubjects. I think these events will be welcoming for generalparticipants and will assist them to discover the kind of
results the foundation is helping to achieve.

Corporate Profile

Supporting the Sixth Dolphin & Whale
Eco-Research Network Project

Casio Worldwide
Education Website

Casio (Shanghai) Establishes
Fund for Three Local Universities

Casio and Employees

On November 27 and 28, 2006, Casio (Shanghai) Co., Ltd.,
set up the Casio Education Fellowship in cooperation with
Fudan University, Shanghai International Studies University,and East China University of Political Science and Law, alllocated in Shanghai. This fund follows the company’s
establishment of the Casio Monetary Fund Committee for
Peking University Japan Study, in 2005.
Fudan University is one of the leading national universities under direct control of China’s State Council; theShanghai International Studies University is an authority on
foreign language learning in China; and the East China
University of Political Science and Law is a school specializing in legal studies. These universities have produced manyhigh-profile alumni in and outside China, and they are allleading research institutions. Through the donation of educational grants to each of these
universities over the next
decade, Casio will contributeto higher education in China
while actively promoting ongoing cooperation including theexchange of information andtalented people.

Casio and Society
Company Data

Director
International Cetacean Education ResearchCenter (I.C.E.R.C.) of Japan

Casio andthe Global Environment

Hidekazu Ohshita

Casio and the Market

I.C.E.R.C. Japan is pursuing environmental education
activities based on the idea of helping people toappreciate the importance of the natural environment bylearning about and encountering dolphins and whales.
I would like to thank the people of Casio Computer Co.,
Ltd., for supporting our activities for more than a decade.
Through the adoption of packaging made from recycledmaterials and Tough Solar technology, each year the
special G-SHOCK models made for I.C.E.R.C. havebecome more and more environmentally friendly. By
attracting the interest of many young people, the G-SHOCK
and Casio’s environmental initiatives are having a
tremendous impact. I hope that
Casio will always be a company
that values the naturalenvironment.

CSR Management

The Casio Worldwide Education Website (WEW) wasestablished in 1998. Since the site’s inception, it has been
visited by many educators in the field of mathematics, andtoday, over 15,000 educators regularly utilize the site.
The purpose of the website is to educate as many people
as possible about Casio’s scientific calculators, and how to
use them effectively in schools. In addition to productinformation on Casio’s scientific calculators and software
download services, the site describes and provides many
lesson plans and textbooks prepared in various countries, tohelp instructors to utilize Casio scientific calculators
effectively in the mathematics classroom.
In February 2007, site content was updated, and an
online forum was held for educators. The forum provided an
opportunity for the free exchange of opinions anddiscussions on Casio products and lesson plans preparedby educators.
This website has enabled
Casio to provide lesson-planning
expertise to a wide range ofeducators while obtaining a wide
variety of opinions and usefulfeedback to apply to thedevelopment of future Casio
products.
Casio Worldwide
Education Website
http://edu.casio.com/

G-SHOCK models that support theDolphin & Whale Eco-Research
Network

CSR Highlights

Ever since 1994 when the International Dolphin and Whale
Conference was held in Japan, Casio’s G-SHOCK and
Baby-G watch brands have been working with theInternational Cetacean Education Research Center(I.C.E.R.C.) of Japan to support educational and research
activities involving dolphins and whales. In 2006, Casio
participated in the Dolphin and Whale Watching Campaign
2006 at the Sixth Dolphin & Whale Eco-Research Network
Project, and provided support for the realization of betterdolphin and whale watching activities in Japan.
Special G-SHOCK models have been released printed
with the message of “All as One” to express that the lives ofdolphins, whales, people, and all other organisms exist in
oneness on the Earth. These models feature Tough Solartechnology that reduces the need for battery disposal, andthe packaging contains paper recycled from Casio’s
corporate activities. A pamphlet is also included that outlines
the activities of I.C.E.R.C., in order to promote awarenessand understanding of its
activities. Finally, aportion of the proceedsfrom sales of thesemodels is contributed to
I.C.E.R.C. Japan.

Casio’s Educational Website

Grant award ceremony

Casio Corporate Report 200757

Casio and Society

Social Contribution Initiatives

Communication Activities
Educational support for high school students (Kashiwa High School, Chiba)
Casio Computer Co., Ltd., welcomed a visit by students from
Kashiwa High School in Chiba prefecture to the Hamura R&D
Center in August 2006. The visit was organized based on theschool’s request for the students to learn about the logic
circuitry of the calculator and to visit a research anddevelopment site. The curriculum at Kashiwa High School
places priority on science and mathematics. Based on thecooperation of universities and research laboratories, it has
been designated by Japan’s Ministry of Education, Culture,
Sports, Science and Technology as a super-science highschool that seeks to develop the scientific experts andengineers of tomorrow. The students are able to select topics
that interest them, and are required to take an active
approach to learning. On the day of the visit, a teacher andfive students who were researching how calculators work,
arrived at Casio with the desire to see physical evidence ofthe scientific theory they had been studying.
First, members of the Consumer Division of the ProductDevelopment Headquarters introduced the guests to Casio’s
corporate activities, explained logical circuits that performthe four arithmetic functions, and lectured on the basic
technology related to calculators. Then the students were
given a tour of the new product development labs andequipment. The young people were captivated by the visit,
and posed a steady stream of articulate questions.
Several days later, theteacher sent a thank-you
message indicating thatthe tour had made thestudents more enthusiastic
about learning. Casio ispursuing activities likethese to encourage young
people to become more
Lecture demonstration
impassioned about
learning, help build a better society, and realize thesignificance of work.

Teacher’s Business Training Program

working in departments ranging from development to sales.
The participants were especially interested in Casio’s initiatives for social contribution and environmental protection, as
well as the way the company’s corporate creed, “Creativity
and Contribution,” is being realized through its businessactivities. The training ended with a discussion among theteachers about how to apply what they had learned in theirclassrooms.
The participants expressed the desire for further
enhancement of relations
between the business andeducational worlds, andCasio plans to expand thisprogram in the future.

Teacher training

Factory Tours for 10,000 People
Providing a place for young people to gain inspiration
for a meaningful life
With Kofu Casio leading the way, Casio launched the“Factory Tours for 10,000 People” program in February 2004.
The goal of the program is to provide a place for young
people to discover that family ties, the power of science, andpursuing one’s dreams are three important sources ofinspiration for a meaningful life.
Young people discover the value of family ties by coming
to see the place where their parents work, while also learning
about the close ties that bind together their entire society.
They learn about product construction and function byhaving the rare chance to see how advanced products are
made, and actually trying simple product assembly
themselves. This gives the young visitors a glimpse into thewonders of science, and they discover that they can realize
their dreams through hard work and perseverance. The
program is an outstanding way for Casio to provide
opportunities for young people to make the discoveries thatwill help them become the leaders of the future.
In fiscal 2007, Casio invited five schools, or 262 students
and teachers, to participate in factory tours. Moreover, at the
Eco-products 2006 exhibition held at the Tokyo International
Exhibition Center, the Casio booth also offered a calculator
assembly experience for elementary school students. During
the three days of the event, about 130 children participatedin this well-received activity.

The annual Teacher’s Business Training Program was heldfrom July 24 to 26, 2006, and was sponsored by the Keizai
Koho Center (Japan Institute for Social and Economic
Affairs). Now in its fourth year, the program hosted teachers
from Ohta Ward, Tokyo.
In line with the Japanese government’s priority policy onrevitalizing education, this program utilizes cooperation
between schools and industry to provide elementary, juniorhigh and high school teachers with opportunities toexperience corporate activities and share what they havelearned with the students who will be the leaders of
tomorrow. This gives Casio Computer Co., Ltd., opportunities
to convey its various messages to young people.
The teachers that participated in the training enjoyed avariety of in-house presentations by frontline personnel
Thank-you letter from students at Kugayama Elementary School,
Suginami Ward, Tokyo

58

Casio Corporate Report 2007

Category

Environment

The star “✩” symbol indicates communication activities in the area of social contribution.

Implementing
organization

Cleanup performed along the streets around the company site, on the road tothe nearby station, and in the park adjacent to the company. More than 100
employees participated twice during the year.

Kofu Casio Co., Ltd.

Community cleanup andbeautification activities

Carried out at 16 sites across Japan before the start of the workday.
Contributed to local beautification activities.

Casio Techno Co., Ltd.

Volunteer cleanup around Casio premises

Cleanup carried out around the Hamura R&D Center between 8 a.m. and 8:30
a.m. on June 30, September 8, November 17, and February 23. About 20
people participated each time.

Casio Computer
Co., Ltd.

Sent an engineering instructor to give a lecture at the Higashi Yamato Minami
High School in Tokyo. The lecture, about working at a cellular phone company,
was given to about 560 students in grades 10 and 11.

Casio Hitachi Mobile
Communications Co., Ltd.
Casio Computer
Co., Ltd.

Lecture given to 52 students of the Graduate School of Engineering at
Yamagata University on theme of digital network utilization in a plastic molding
and precise metal molds factory.

Yamagata Casio
Co., Ltd.

Welcomed students as part of their social studies, and others, for factory tours,
for a total of 345 people.

Yamagata Casio
Co., Ltd.

Welcomed students on school trips as part of their comprehensive studies, andothers, for a total of 244 people.

Casio Computer
Co., Ltd.

Hosting interns ✩Actively participated as an internship hosting company as part of college
vocational programs. 17 interns were welcomed.

Kochi Casio Co., Ltd.

Student training as part ofcollege courses ✩Practical business training for students that is relevant to their academic
majors, as part of college courses. Hosted 35 students over three months.

Casio (Thailand)Co., Ltd.

Participation in blood donation drive

203, 282, 79, and 59 employees participated at headquarters of Casio
Computer Co., Ltd, Hamura R&D Center, Kofu Casio, and Kochi Casio,
respectively.

Casio Computer
Co., Ltd.
Kofu Casio Co., Ltd.
Kochi Casio Co., Ltd.

Jobs offered to persons with physical ormental disabilities

Provided outsourcing in the form of light tasks such as product disassemblyand parts sorting.

Casio Business Service
Co., Ltd.

Hosting the CASIO WORLD OPEN GOLF
TOURNAMENT

Event held at the Kochi Kuroshio Country Club. Donated digital cameras tolocal governments in Kochi Prefecture. Gave behind-the-scene tours toelementary school students, and provided golf lessons to local children. Used
donations obtained during the tournament to buy sporting equipment for local
welfare organizations.

Casio Computer
Co., Ltd.

Education
Company Tours ✩WelfareSports

Casio and the Market

Cleanup Day

CSR Management

Details/Results

CSR Highlights

Theme

Lecture visits ✩Corporate Profile

Major social contribution initiatives in fiscal 2007

Major donations in fiscal 2007

Environment

Education

Implementing
organization

Project title

Donation recipient

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.

Scholarship provision

Costco Scholarship Fund

Casio America, Inc.

Support for the International University of Japan

International University of Japan

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.

Study and research Donation to Antiquity Studies Society

Casio Computer Co., Ltd.

Sponsorship of the Fruit Nation Higashine – 5th Cherry Marathon

City of Higashine, Yamagata

Yamagata Casio Co., Ltd.

Support for “adopted” tulip bulbs and Ohga lotus

Hamura Sightseeing Association

Casio Computer Co., Ltd.

Healthcare

Donation to the fund for rehabilitation of persons with disabilities

Fund for Rehabilitation of Disabled Persons

Casio (Thailand) Co., Ltd.

Social welfare

Support for PH-Japan

PH-Japan (NPO)

Casio Computer Co., Ltd.

SportsSupport for World Children’s Baseball Fairs

World Children’s Baseball Foundation

Casio Computer Co., Ltd.

Casio and Society

Antiquity Studies Society

Localcommunities

Casio and Employees

Culture and arts

Casio andthe Global Environment

Category

Major awards and commendations in fiscal 2007
Year Month Site
JulyAwarding organization

G'zOne (TYPE-R) receives outstanding performance award in the mobile
hardware category at the Mobile Project Awards 2006.

MCF Mobile Project Award Committee,
Mobile Content Forum

Casio Computer Co., Ltd.

Letter of appreciation from Japan’s Minister of Health, Labour andWelfare for ongoing support of Japan Red Cross disaster relief

Ministry of Health, Labour and Welfare, Japan

Received Judges’ Special Prize at the 9th Ozone Depletion and
Global Warming Prevention Awards

The Nikkan Kogyo Shimbun, Ltd.

Casio (Thailand) Co., Ltd.

Good corporation in labor relation & welfare

Ministry of Labor & Social Welfare, Thailand

Casio Computer Co., Ltd.

Eight Casio products honored at the Good Design Award 2006 (G Mark)Japan Industrial Design Promotion Organization

Received three 2006 Invention Promotion Awards

Japan Institute of Invention and Innovation

2006 Sept. Kochi Casio Co., Ltd.

Oct.

Nov. Casio Computer Co., Ltd.
Jan.
2007

Casio Computer Co., Ltd.

Three Casio products honored at the iF product design awards 2007 in Germany International Forum Design HanoverCasio Computer Co., Ltd. (headquarters)
Received highest award for rationalization of electrical use in the
Casio Computer Co., Ltd.
Kanto region

Feb. (Hachioji R&D Center)
Kofu Casio Co., Ltd.

Company Data

Award or commendation

Casio Computer Co., Ltd.
Casio Hitachi Mobile
Communications Co., Ltd.

Kanto Region Electricity Usage Rationalization
Committee, Kanto Electric Association

Letter of appreciation for contribution to safe community promotion activities Minami Kofu Police Station

Casio Corporate Report 200759

Independent Opinion

Outside Opinion on the Casio Corporate Report 2007
The opinions given here were written based on the content of this report and interviews with Casio personnel responsible forhuman resources, procurement, and environmental initiatives.
Casio’s CSR initiatives have begun to use the PDCA (plan, do, check, act) management cycle for a wide range of social
efforts including reducing the company’s environmental impact.
Commendable efforts by Casio● Energy conservation targets were established from the design stage forthe new Hachioji R&D Center building. Through the verification of dataon energy consumption outcomes, a 33% reduction in CO2 emissions
compared to the previous building was achieved (page 19). In the future,
the energy-saving study team meetings held monthly should be continually improved, and the knowledge gained from these efforts ought to be
actively shared with other Casio offices as well.
● Casio is using environmental accounting to calculate and manage economic effects on a project unit basis, as well as the environmental
efficiency of sales in terms of CO2, waste, and PRTR substances (page47). Now Casio needs to further increase the projects covered, andexpand the efforts to its suppliers.
● The number of contacts to the Whistleblower Hotline was disclosed(page 25). However, Casio should be more active in raising awareness ofthe hotline and how it is used among employees, group companies, andsuppliers, in order to resolve various small problems before they becomelarge ones.
● The “Factory Tours for 10,000 People” program is providing opportunities
for local children to gain the inspiration needed for a meaningful life
(page 58). In the future, Casio ought to improve the structure and management of the program so that more children can have the opportunity
to participate, on an ongoing basis.

with mutual support. Since this is the time when Casio is actively expanding its production sites in and outside Japan, the company needs tocarry out these initiatives as soon as possible.
● A flextime system needs to be introduced as a support measure for
employees with child or nursing care responsibilities. This includes shorter or revised work times, not only providing leave opportunities(page 54).
● Supplier Guidelines are given to part suppliers and business outsourcers. However, clear guidelines also need to be created to ensure
the safety of the people living in the places where raw materials are
obtained. Moreover, support should be actively provided to promote
such initiatives (page 35), for example, by creating a system for commending department activities and outstanding cases based on
initiative themes.
● In its emergency response measures, Casio aims to secure the safety of
employees and their families, preserve corporate assets, and maintainbusiness activities (page 24). In addition to these goals, Casio must also
position support for the local communities around Casio offices as animportant social element of its business continuity plan, and prepare toprovide this support.
● Casio has not yet achieved the legal employment rate for persons withdisabilities (page 52). In order to fulfill this requirement, the company
must promptly carry out more active development of suitable job types.

Points for improvement● In addition to stating whether or not the environmental action targets forbusiness sites have been achieved, the main causes of success or failure should be described (page 39). It is also important to indicate
whether analyses of results and problems were appropriately carried out.
● In order to promote initiatives at each individual office site for addressing
environmental and social problems (especially reducing CO2), Casio
should commend proposals and practices introduced by small groups,
and create a corporate climate where all employees provide one another

Hideto Kawakita, Chief Executive Officer
International Institute for Human, Organization and theEarth (IIHOE)Profile of IIHOEInternational 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 on the 2006 Report
Outside Opinion

Outside Opinion● Casio has not achieved its targets for the amounts of carbon
dioxide emissions, water usage and waste for two consecutive
years. It appears that the targets are either too difficult or that the
management systems are not functioning properly (pages 20 and40). Based on the active incorporation of changes in businessperformance and market value, Casio needs to disclose its annual
targets and details of actual measures taken for initiatives to becompleted by 2010. In particular, it needs to disclose both thebasic units and overall amounts of actual production of carbon
dioxide emissions.
The company must also actively learn from successful cases
and thoroughly promote methods for energy saving in daily
operations at production sites. Furthermore, the committees anddepartments operating under Casio Environmental Conservation
Committee have to go beyond the reporting of results, to thepromotion of initiatives based on future forecasts.

Casio’s Response▼

It is true that the levels of three environment indicators (CO2emissions, water usage, and waste output) increased for Casio inJapan in the previous two years, both per unit of production and interms of gross weight. In fiscal 2007, however, Casio achieved a
reduction in all three indicators, measured both ways. This was due
to clear target setting at each site, the switchover to energy-saving
equipment at Yamagata Casio, the rebuilding of Kofu Casio’s water
system, and the promotion of waste reduction activities at each site.
Additional measures for achieving targets are now being
investigated, and the measures are to be announced along with theresults tally midway through fiscal 2008. Steps will be taken to ensurethat the careful study and planning for fiscal 2011 targets willtranslate into concrete actions. Moreover, in the latter half of fiscal
2008, Casio will introduce a system for reporting actual vs. target
environmental performance results each month, and use it to drive
the realization of group-wide targets.

60

Casio Corporate Report 2007

● Casio should actively support the establishment of the proper foundation for EHS (environment, health & human rights, safety) for its
supply-chain, including group companies and principal suppliers.

Casio’s Response▼

Measures for group companies● Starting in fiscal 2007, Senior Life Style Seminars for employees
who are approaching the age of mandatory retirement have been
expanded from Casio Computer Co., Ltd., to some Casio
subsidiaries. These seminars deal with topics such as lifestyles
and programs relevant to seniors, including information on healthmanagement, as well as finances and living with family after
retirement.
● A guideline for the prevention of sexual harassment has beencreated. This information is being directly conveyed to employees
and group companies, as well as being posted on the company’s
intranet, in order to raise awareness. A hotline has also been
established to provide consultation.

Measures for suppliers● In line with its Procurement Policies, Casio has establishedevaluation standards relating to the environment, health, humanrights, and safety. Through supplier meetings, guidance is being
given on how to implement the standards and achieve
improvements.
● Casio carries out green procurement of parts that make up
products (including the purchase of completed products). As partof this effort, the company is actively purchasing from groupcompanies and suppliers that have implemented ISO 14001 or anequivalent environmental management system. Casio is also
providing support for all group companies and suppliers to
implement such systems.

Company Data

Data on Casio Computer Co., Ltd. (as of March 31, 2007)
Name:

Casio Computer Co., Ltd.

Headquarters:

1-6-2 Hon-machi, Shibuya-ku, Tokyo, Japan
Tel.: +81-3-5334-4111

Established:

June 1, 1957

President & CEO:

Kazuo Kashio

Paid-in capital:¥48,592 million

Employees:

3,246 (non-consolidated)
13,013 (consolidated)

Consolidated companies: Subsidiaries 52
Equity-method affiliates 3

Contact Information

Casio Computer Co., Ltd.
http://world.casio.com

Published: September 2007

For inquiries on CSR in general:

For inquiries on environmental issues:

CSR Operations Section

Environment Center

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

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

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