Contents
Message from the President on Casio’s Social Responsibility ..................................02
Corporate Profile
History of Casio..........................................................................................................04
Business Overview ....................................................................................................06
Casio’s Unique Strengths ..........................................................................................12
CSR Highlights
Research & Development—Next Generation Fuel Cell .............................................15
Production—Yamagata Casio Receives 2005 Nikkei “Monozukuri ” Grand Prix .......16
Social Contribution—Factory Tours for 10,000 People..............................................18
Environment—Initiatives to Help Prevent Global Warming: Working to Achieve
Fiscal 2011 Targets ...................................................................................................20
European Regulation Initiatives .................................................................................21
CSR Management
Corporate Creed and Charter of Creativity................................................................22
Corporate Governance ..............................................................................................23
Compliance and Risk Management ..........................................................................24
Casio and the Market
Responsibilities to Customers—Stable Supply of Products .............................26
Responsibilities to Customers—Research and Development of
Next Generation Products ................................................................................27
Responsibilities to Customers—Customer Satisfaction andQuality Assurance ............................................................................................32
Responsibilities to Suppliers—Building Strong Partnerships ...........................35
Responsibilities to Shareholders and Investors—Optimum
Shareholder Return and Information Disclosure ..............................................36
Casio and the Global Environment
Environmental Management Vision ..................................................................37
Casio Environment Charter and Casio Fundamental
Environmental Policies......................................................................................38
Environmental Action Plan, “Clean & Green 21” Initiative ................................39
Environmental Management System ................................................................41
From Eco-product Design to CSR Design........................................................43
LCA Evaluation Report .....................................................................................44
Green Procurement and Green Purchasing .....................................................45
Material Balance of Business Activities ............................................................46
Material Balance by Business ..........................................................................47
Environmental Accounting................................................................................48
Initiatives to Prevent Global Warming...............................................................50
Prevention of Air and Water Pollution and Reduction ofIndustrial Water Usage .....................................................................................51
Control of Chemical Substances and Reducing Their Use..............................52
Reduction of Waste Generation and Landfill Disposal.....................................53
Environmentally Friendly Distribution ...............................................................54
Environmentally Friendly Packaging Materials.................................................55
Communication and Disclosure about the Environment ..................................56

Editorial Policy
Casio began publishing its Environmental Report in 1999. In 2004, thepublication was changed to the
Sustainability Report with the additionof social and economic content. In
2005, the content was further improved
to create the Corporate Social
Responsibility Report. In 2006, it has
been renamed the Corporate Report,
and now includes the previously separate Corporate Profile. By also adding a
Web version to the printed publication,offering more detailed data, Casio is
striving to provide more accessible information to all of its stakeholders.*● The report has been presented in aneasy-to-understand format, so that all
stakeholders,* including theconsumers who love Casio products,
can easily read the material.
● In this report, the name “Casio
Computer Co., Ltd.,” refers only to theparent company, while “Casio” isused to indicate the entire Casio
group of companies.
● Beginning with this report, Casio haschanged the way it designates the
fiscal year to match the other reports
it regularly publishes:
In this report: FY2006 means from
April 1, 2005 to March 31, 2006
Previous reports: FY2006 meant from
April 1, 2006 to March 31, 2007
● Graphs and diagrams have been designed so that they are easy foreveryone to view, including those withdifferent visual and color perception.
*Stakeholders
Stakeholders of Casio include customers, suppliers, investors,
shareholders, employees, local residents, NGOs, NPOs, the mass media,
financial institutions, researchers, andgovernment agencies.

Forecasts andForward-looking Statements

The future forecasts andforward-looking statements published in this report for Casio
Computer Co., Ltd., and Casio
are based on information available at the time of publication.
These forecasts and statements
include potential risk and uncertainty, and the reader should beaware that the actual results ofbusiness activities may differ
from these predictions.

Casio and Employees
Creating Employment Opportunities ................................................................57
Appointing and Effectively Deploying Qualified Workers.................................58
Building a Supportive Work Environment .........................................................59
Efforts on Occupational Safety and Health ......................................................60

Issued December 2006●

Casio and Society
Social Contribution Initiatives
Philosophy, Local Communities,
Civil Society, International Community ................................................61
Company Data
Company Data..................................................................................................65
Recognition from Society/Scope of the Report ................................................67
Independent Opinion........................................................................................68
GRI Content Index ............................................................................................69

Previous publication
December 2005: Corporate Social
Responsibility Report 2005

Introduction

Growing with Society through Creativity
and Contribution“Let’s build the ideal calculator with our very own hands.”
This was the mantra adopted by the four Kashio brothers as
they developed a calculator that used only electricalcircuits—back when gear-operated mechanical calculators
were the only available technology. By 1957, the fourbrothers had already succeeded, introducing the world’s
first small, fully electric calculator (the “14-A”), andfounding Casio Computer Co., Ltd.
Ever since, Casio has been leveraging its digitaltechnologies to advance into new business fields—
timepieces, musical instruments, and LCD
monitors, to name a few. Casio’s dynamism
comes from its profound ability to develop
innovative products that meet latent but
universal needs. Again and again, Casio has
defied conventional wisdom to give people
the things they really need but haven’t
even thought of yet. The company iscontributing to societies around the world
by delivering convenience andentertainment, creating new markets,and facilitating cultural development.
True to its corporate creed,“Creativity and Contribution,”
Casio’s greatest responsibility isimproving people’s lives bydeveloping groundbreaking
new products. Along with thiscore commitment, Casio isproud to say that all of its
employees have, as partof their job descriptions,determined their own
personal commitment
to social contribution.
The goal of thecompany and all of
its people is to
grow by helping
society to grow.

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Casio Corporate Report 2006

Message from the President on Casio’s Social Responsibility“Casio has been pursuing ‘Creativity andContribution’ since the beginning. Theseunchanging values define our commitment tofulfilling our corporate social responsibility.”

Our Corporate Creed: “Creativity
and Contribution”
Casio’s corporate creed has been “Creativity andContribution” since we established Casio Computer
Co., Ltd., after inventing a small, fully electriccalculator in an era when mechanical calculators
were the norm. Ever since, our commitment has
been to contribute to society by offering the kind oforiginal, useful products that only Casio can.
We have accomplished this over the years byidentifying latent needs that people have yet to
discover, and then meeting those needs with
innovative products and services, which soon
become an integral part of people’s daily lives.
In doing so, we always strive to think bigger than themere provision of new technology, products, orservices—our real goal is to inspire new lifestyles
and contribute to culture.
Times may change, but our commitment to“Creativity and Contribution” is unwavering. This
creed defines the company’s very reason for being.
Looking to the future, Casio has its sights set onbringing joy and wonder to people everywhere andcontinuing to make a real difference in the world. To
earn its place in a sustainable global society, Casio
must keep demonstrating the meaning of “Creativity
and Contribution.”

CSR Initiatives
In Japan, 2004 has been called the dawn of the “ageof CSR,” as many companies introduced a variety of
CSR initiatives. Many also came out with their own
definitions of CSR, but these definitions are by nomeans universal. The scope of CSR and the rolecompanies expect themselves to play differs witheach organization’s perspective.

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In 2004, Casio inaugurated its CSR Operations
Section, and set up a CSR Committee comprised of
the company directors and auditors. These steps
have provided a forum for discussion of a broad
range of CSR issues. Also in that year, we added asection on social contributions to our Environmental
Report (published since 1999) to create theexpanded Sustainability Report.
Since 2004, we have promoted a wide range of
CSR initiatives, including strengthening ourcompliance system, obtaining Privacy Markcertification for personal data protection, achieving
zero emission standards in Casio’s main operations
sites in Japan, taking steps to comply withenvironmental regulations, promoting CSR
procurement, and issuing the Corporate Social
Responsibility Report in 2005.

Pursuing CSR-driven Management
Despite all of these achievements, Casio—like allother companies today—is subject to ever stronger
demands and higher expectations from society. In
order to secure fair and transparent management
and continue to improve corporate value, we recognize the need to once more return to the founding
principles of “Creativity and Contribution.” In doing
so, we intend to find and exploit synergies between
our everyday business activities and CSR initiatives.
We shall make CSR a core driver ofmanagement by faithfully executing on thefollowing commitments.
● To continue realizing the unchanging,foundational principles of “Creativity andContribution,” Casio will adhere to the Charterof Creativity for Casio and the Casio
Common Commitment.

Casio Corporate Report 2006

● Casio will observe all applicable laws andregulations, and will strive to improve corporate
value by reinforcing its system of internal controls
and implementing effective compliance and risk
management throughout its entire global
supply chain.
● Through its primary business activities, Casio willcontinue to create new value to help resolve
various issues facing the global community.
● Casio will consistently implement environmental
innovations that integrate eco-efficiency as well as
resource conservation and energy saving features
into all processes related to creating products
and services.
● Casio will disclose financial and other information
in a simple, accessible format to all
stakeholders, and increase managementtransparency by creating more opportunities forinteractive communication.

Kazuo Kashio

In past years, Casio has published the Corporate
Profile and Corporate Social Responsibility Report
separately. This year, however, we have combined
the two into an integrated Corporate Report—the
one you are reading now—in order to present a fuller
picture of Casio to readers of both publications. I
hope this Corporate Report will serve as animportant means of communication between Casio
and all of its stakeholders. For a variety of details
that could not be included in this publication due tospace limitations, I invite you to visit the
Casio Website (http://world.casio.com).
I am committed to managing Casio for socially
responsible business success, and I would
appreciate hearing your frank opinions of our efforts.

President & CEO

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Casio Corporate Report 2006

History of Casio

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

CSR Activities

1957
1957 Commercial production of the world's
first small, fully electric calculator starts.
Casio Computer Co., Ltd. founded.

1965

Export of electronic desktop calculators to overseas markets begins.

1966

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

1972

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

1974

Electronic cash register released.

1976
1977
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

Certificate of commendation

First CASIO WORLD OPEN GOLF
TOURNAMENT held.

First G-SHOCK, a 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

The first CASIO WORLD OPEN

Company Data

Dedicated office, the Consumer Section,
established to receive inquiries fromgeneral consumers.
1982

TR-2000

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

Casio Science Promotion Foundation
established.

Casio Science Promotion
Foundation

1986
G-SHOCK

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Company-wide Quality Improvement
Campaign launched.

Casio Corporate Report 2006

Casio and Society

Casio Tone

Production of liquid crystal panels
for watches begins.

Casio Eight Club

Casio and Employees

Casiotron

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

Casio andthe Global Environment

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

Casio and the Market

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

1967

CSR Management

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

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

CSR Highlights

1964

Corporate Profile

Business Activities

Company-wide Quality
Improvement Campaign

History of Casio

Business Activities

CSR Activities
1989

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

Name Land (KL-1000) label printer released.

1991

Casio Environmental Conservation Committee established.

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

1992

QV-10

QV-10, the first digital camera in the world withan LCD monitor, released.

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.

“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.

VeriPat TM, a fingerprint verification algorithm, developed.

2000

ISO14001 certification now acquired at all manufacturing sites in Japan andfour 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.
Casio delivers first camera-equipped cellular
phone with GPS to au of KDDI.
EXILIM, the world’s thinnest, wearable cardsized digital camera, released.

2002

Three Casio sites (the head office and Ichinomiya factory of Kofu Casio Co.,
Ltd., and the Yamanashi facility of Casio Micronics Co., Ltd.), achieve zero
emissions (less than 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 Co., Ltd., awarded the Natural Resources and Energy Agency
Director-General’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.

2005

Corporate Sustainability Report 2005 issued, replacing the Sustainability
Report.
Casio Computer Co., Ltd., and Casio Lease Corporation obtain Privacy Markcertification.
Improvements completed on all products destined for Europe in compliancewith the RoHS Directive.

2006

Corporate Report 2006 issued, replacing both the Corporate Sustainability
Report and Corporate Profile.

GPS cellular phone withbuilt-in camera for au

EXILIM

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Casio Corporate Report 2006

Company Data

1999

Casio and Society

World’s first watch equipped with GPS function released.
C303CA, a shock- and water-resistant, cdma One-compatible
cellular phone, released.

Casio and Employees

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

Casio andthe Global Environment

1998

Casio and the Market

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

CSR Management

1997

CSR Highlights

1993

Corporate Profile

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

Business Overview

Casio’s two main businesses are electronics and electronic
components. The company creates products that are compact,
lightweight, slim, and energy efficient for the global market.

Sales by category(FY 2006)
Others
5.7%
Electronic Components
12.7%
System Equipment
8.4%

Consumer
36.8%

Electronic
Components
and Others

18.4%
Electronics
81.6%

Timepieces category

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

Digital watches, analog watches, clocks

Electronic Components
category
LCDs, BUMP processing consignments,
TCP assembly and test consignments,
carrier tape

Digital cameras

Cellular phones, handy terminals

Solar-powered radio-controlled watches

System Equipment category
Electronic cash registers (including POS
system), office computers, page printers,
data projectors

TFT LCD module

Others category
Electronic cash
registerPage printer

Main products: Factory automation,molds, etc.

Chip mounter

Handy terminal

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Casio Corporate Report 2006

Company Data

Cellular phones

Casio and Society

Mobile Network Solutions(MNS) category

Casio and Employees

COF

Casio andthe Global Environment

Consumer category

Casio and the Market

Electronic Components andOthers Segment

Electronics Segment

CSR Management

Timepieces
12.3%

Mobile Network Solutions
24.1%

Electronic dictionaries

CSR Highlights

The Casio Group is comprised of Casio Computer
Co., Ltd., 56 consolidated subsidiaries, and 4
equity-method affiliates (as of March 2006). 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 isdivided into two categories: Electronic Components,
and Others. In all of these categories, Casio’s
business activities range from development andproduction to sales and service.

Corporate Profile

Business Fields

Business Overview
Consumer Category

Greater Convenience,
More Enjoyment

CSR Highlights
CSR Management
Casio and the Market

This electronic dictionary forJapanese high school students
boasts voice functionality and has
50 content categories that are
useful for various subject areas. In
11 of these categories, students
can listen to accurate pronunciation
by native speakers of English.

Corporate Profile

EX-word XD-ST4800
electronic dictionary

Casio offers a wide array of
products to make everyday
life more convenient andfun. They include everythingfrom calculators for a myriadof commercial andeducational applications, toelectronic musicalinstruments that even
beginners can easily master.
Casio has also introduced
many new industry-leading
digital cameras andelectronic dictionaries.

EN-100/EN-200
electronic calculators
Privia PX-110 electronic musicalinstrument

Digital Dictionaries Save Forest Resources

onmental
Environmental
Highlight

It would have taken 26,221 tons of paper to print paper versions of all the dictionaries contained in theelectronic dictionaries sold by Casio from April 2005 to March 2006. At an average yield of 50 kilogramsof paper per tree, this would be equal to 520,000 trees that did not have to be used to makepaper dictionaries.

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Casio Corporate Report 2006

Company Data

This affordable digital pianodelivers true piano sound in acompact, lightweight, andstylish design. From real
pianists to everyday amateurs,
anyone can take advantage of
the PX-110’s superior soundquality and natural keyboard
touch to practice freely in theprivacy of their own location.

Casio and Society

These are the industry’s first hyaku masu
keisan (“one hundred calculations drill”)
training calculators, developed with theassistance of Professor Hideo Kageyama
of Ritsumeikan University. By repeatingeach of the basic arithmetic functions
one hundred times, children are able tostrengthen their basic calculation ability,and develop active learning habits. With
the same device, adults are able to keep
their minds sharp by exercising theirgray matter with arithmetic drills.

Casio and Employees

This stylish digital camera delivers 10.1-megapixels in a slim,
compact body. With a large 2.8-inch, super-bright, wide-screen
LCD, Casio has revolutionized the use of the camera monitor byadding powerful new image display features and an easy-to-read
information layout.

Casio andthe Global Environment

EX-Z1000 digital camera

Business Overview
Timepieces

Solar Power and Radio
Control—Always Evolving
Corporate Profile
CSR Highlights

G-SHOCK GW-810D

Casio and the Market

The G-SHOCK watch with the high-capacity
Tough Solar power system receives accurate time
data from any of five transmitters worldwide (two inJapan, and one each in the US, UK, andGermany). By combining a metal wristband with acompact, slim case made from metal materials, a
simple and refined, rounded form has beenrealized. Perfect for a casual look or even a suitand tie, this design has wearers arriving on timeand looking smart.

CSR Management

Casio consistently leads the timepiecemarket in innovation. Casio products havecontinued to evolve by incorporating newtechnology into their construction,
performance, features, design andmaterials. Solar power is the driving force
behind Casio’s timepieces that receive
standard radio waves containing time data,
resulting in watches that always display thecorrect time and will keep running as longas there will be light. Solar-powered radiocontrolled timepieces represent a major
leap forward in the perfection of the watch.
Never satisfied, Casio is determined todrive the evolution of timepieces evenfurther forward with original technology andunique ideas.

Casio andthe Global Environment

LILANA LNA-100LJ

Ultimate Solar-powered Timepieces

onmental
Environmental
Highlight

Solar-powered, radio-controlled watches continue to work without resetting as longas a light source is available. Casio’s Tough Solar power system combines a highcapacity rechargeable battery and a small solar panel that generates electricity,even from fluorescent lights. The watches also take advantage of advancedenergy-saving large-scale integration (LSI) chips, and a power-saving function thatturns off the display when left for a long time in the dark. This means that they canoperate for a long time in places without light. Casio has achieved the ultimate in a
maintenance-free watch that needs only natural energy to run.

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Casio Corporate Report 2006

Company Data

The LILANA is a solar-powered, radio-controlled watch
for women with a full metal case and an elegant andsimple look. In addition to a beautiful face with multiple
hands, the watch features a leather wristband with an
elegant arabesque design on the inside, as well as a
15-facet cut bezel that shines differently depending on
the direction of the light. This sophisticated wristwatch
incorporates all the fine details preferred by women.

Casio and SocietyWith a full metal case, the OCEANUS
solar-powered, radio-controlled watch
offers both high functionality and a sporty
design that originated in Europe. Alongwith compatibility for standard radio waves
from the five transmitters worldwide, a slim
module of the OCEANUS features multiple
hands for chronograph, tide graph, andmany other measurements.

Casio and Employees

OCEANUS OCW-M700TDJ

Business Overview
Mobile Network Solutions

Anytime, Anywhere
Corporate Profile

W41CA

Casio and the Market

DT- 5200

onmental
Environmental
Highlight

The W42CA cellular phone not only complies with the RoHS Directive, the European regulation on
environmentally harmful substances, but also offers high durability for a long product life. Based on a uniquedesign concept, it delivers great shock resistance and an IPX7* grade waterproof designation, enablingusers to enjoy the latest technology in a tough, long-lasting body.
* IPX7 waterproof designation (formerly JIS-7 grade water resistant construction): The handset will continue to operate as a phone and resist
water intrusion when submerged at the bottom of a one-meter-deep tank of fresh, still water at a normal temperature for as long as 30 minutes.

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Casio Corporate Report 2006

Company Data

Complying with the RoHS Directive

Casio and Society

G'zOne
W42CA

Casio and Employees

This mobile communication
terminal combines the featuresof a handy terminal with theportability of a PDA. By
operating it in combination
with Excellent Store® shop
support solutions, the user canperform everything from datatransmission to routine retailtasks with one device. The DT5200 leverages information toincrease total in-store
productivity and contributes tothe standardization ofbusiness management.

Casio andthe Global Environment

While offering superior water and shock
resistance, this tough cellular phone iscompatible with CDMA2000 1X EV-DO
technology, enabling access to the latest
communication services. Featuring a 2.1megapixel camera and a 50MB data
folder, it can also be used with external
memory. A mobile electronic dictionary is
also built into the phone.

CSR Management

The slim W41CA cellular phone is compatible with CDMA2000 1X
EV-DO (high-speed data communication) technology and has abuilt-in camera with 2.1 megapixels and a 2.6-inch wide LCD. It isalso compatible with Osaifu Keitai® (“Mobile Wallet”) and Mobile
Suica (electronic train pass) services, and can view Websites
for PCs.

CSR Highlights

The aim of Casio’s Mobile Network
Solutions strategy is to provide an
optimal usage environment forbusiness and personal applications,regardless of time or place. Casio iscontributing to the development of atruly mobile society with solutions
focusing on compact cellular
phones with advanced functions,and mobile terminals for a wide
range of business needs.

Business Overview
System Equipment

Casio and the Market
Casio andthe Global Environment

This compact printer offers high-resolution printing using
super-fine toner plus high-speed printing at 24 color
pages or 30 monochrome pages in a minute. It provides
print security functions such as individual authenticatedprinting. At the same time, a complete recovery system
for toner cartridges reduces environmental impact andprinting costs.

Casio and Employees

ADPS Strategic Integrated
Personnel System 7

Casio and Society

TE-300

Casio page printers realize low operating costs through efficient recovery and recycling, thanks to theadoption of the “Return Toner Cartridge” program, a complete recovery system for reusing toner cartridges.
The printers comply with various environmental standards such as the RoHS Directive on environmentally
harmful substances, Eco Mark, the International Energy Star Program, and the “designated procurement
goods, etc.” stipulated under the Japanese Law on Promoting Green Purchasing.

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Casio Corporate Report 2006

Company Data

The TE-300 is a cash register that fits well with the interior design of astore by enabling the cash drawer to be placed in a separate locationfrom the slim and compact letter-sized main unit. It also features an antimicrobial treated keypad for use in medical and restaurant settings.

Reducing Operating Costs through Efficient Recycling Systems

onmental
Environmental
Highlight

CSR Management

Page Printer N3500

This comprehensive solution supports thestreamlining of administrative work in humanresources departments. The system has been
demonstrated to realize a task application rateof 95%, thanks to an expanded list of ready-touse applications to meet the diverse needs ofenterprise users. In addition to basic humanresources and payroll tasks, the system utilizes
a newly added HR-Library programmed with
13 types of personnel development systems,
such as systems for internal transfer andannouncement of open positions.

CSR Highlights

Casio provides original solutions for all
kinds of businesses, integrating
hardware and software. Casio makes
page printers for all manner of color
documents, systems for enhancing theefficiency of administrative functions at
financial institutions, cash registers for awide variety of retail formats, and theADPS Personnel System for supporting
company human resource strategies.
Casio has earned the praise and trust of
business professionals.

Corporate Profile

Reliability Delivers
Efficiency

Business Overview
Electronic Components and Others

Creating
the Cutting Edge

Casio and the Market
Casio and Employees

COF refers to a film on which LSI chips for LCD
panels are mounted. The film is thinner andmore 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 towards ultra-fine pitch LSI grows,
so too does the demand for COF technology.

Casio andthe Global Environment

WLP refers to the creation of chip-sizedpackages right on a silicon wafer
through copper redistribution formation,
electrode post formation and resin
sealing. WLP is cost effective, and is themost advanced LSI miniaturization
technology, making it possible toproduce ever-smaller devices withproducts such as cellular phones anddigital cameras.

COF

CSR Management

Hyper Amorphous Silicon TFT (HAST) is Casio's original superfine LCD
technology. Able to produce vivid photographic images using amorphoussilicon, HAST is based on COG technology and the development of low
resistance circuits and a high-aperture ratio for TFT arrays, multipin-slim
LSI and other technologies. The clarity of the images it produces has madeCasio's HAST technology a favorite for application in cellular phones,
digital cameras and a wide variety of other mobile devices.

CSR Highlights

TFT LCD Modules

Corporate Profile

Cutting-edge products are bornof the latest advances inelectronic components. Takefor instance the LCD panel, an
indispensable interface
between man and machine,where Casio specializes insmall- and medium-sized LCDs
for mobile devices, including
TN, STN, and TFT panels. In
another advanced field, Casio
Micronics conducts bumpprocessing, as well as COF andother packaging operations.
Casio's electronic components
are hard at work in applications
across the industrial spectrum.

WLP (Wafer Level Package)

Manufacturing Process Achieves Broad Reduction of Global Warming Impact

onmental
Environmental
Highlight

Casio used to use a common cleaning agent called nitrogen trifluoride (NF3) in its manufacturing process for TFT
LCDs. Now, however, Casio has made a complete switchover to carbonyl difluoride (COF2), becoming the firstcompany in the industry to do so. This change has dramatically reduced the global warming impact of the process
to 0.04% of the previous level. Casio has also completely eliminated environmentally harmful substances fromproducts as required by the RoHS Directive, now using, for instance, lead-free solder for BUMP.

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Casio Corporate Report 2006

Company Data

BUMP is a technology that forms
microelectrodes for LSI chips, which
are essential for high-density
packaging. Using gold or solder,
protruding electrodes are formed on an
LSI wafer terminal. BUMP technology isessential for circuits in cellular phones
and other advanced mobile devices.

Casio and Society

BUMP

Casio’s Unique Strengths

Casio’s Originality and Technology Bring Growth
to Both Society and the Company
Casio contributes to society by developing original products that never existed
before, yet meet universal needs. This enables Casio to grow side-by-side with allof its stakeholders.

CSR Management

The accumulation of technologies through daily R&D enables Casio
to realize outstanding original ideas. Casio makes the most of theexpertise in digital circuits it has developed since the early years tocarry out its own LSI design. As a result, the company has invented

very small circuits with high performance and low power
consumption. Casio utilizes these digital circuits in the EXILIM
engine, an image processing module at the heart of its digital
cameras. In another field, Casio began producing LCDs in 1978, andhas become a master in the development of small and mediumsized panels. In addition to meeting the LCD needs of its own
products, Casio also provides LCDs as product components to othercompanies. Casio’s highly original product planning extends to many
cutting-edge fields, including chip on film (COF), chip on glass(COG), and other high-density mounting technologies, as well as thewater and shock resistance technologies that go into G-SHOCK
watches and other products.

CSR Highlights

The driving force behind product planning at Casio is the company’s
unwavering practice of initiating product development from scratch,never just copying the ideas of others. Casio recognizes theunlimited potential to develop products that have yet to be invented
but are needed by everyone. By identifying this latent demands andmeeting it with bold, new products, Casio not only helps to create
new markets and cultural phenomena, but also fosters thedevelopment of related industries.

Corporate Profile

Casio’s Concept Development and Core Technologies Give the World Innovative Products

Casio and the Market
Casio andthe Global Environment

Water and shock resistancetechnologies

Casio and Employees
Casio and Society

Technology for radiocontrolled watches

Small and mediumsize high-resolution
TFT LCDs
Chip on film technologies (COF)

W12

Casio Corporate Report 2006

Company Data

The EXILIM engine, ahigh-performance image
processing moduleCasio’s Unique Strengths

Business Strategy: Generate Both Profitability and Future Potential

Fiscal 2006 figures (April 2005 - March 2006)

Cellular phones

Operating income margin: 5.7%

Casio’s W41CA model
enjoyed the highest
number sold of any phone
across all of Japan’s
wireless providers for 13
consecutive weeks.*

Sales: ¥318.2 billion(+6.7% year-on-year)

DigitalcamerasCSR Highlights

Expansive Businesses

4.6 million
cameras delivered
worldwide.

CSR Management

TFT LCDs
30% of the worldwide
digital camera market.
(Source: Casio survey)(February 6, 2006 to May 7, 2006)

Electronic dictionaries

Casio and the Market

Stable Businesses

Timepieces
35 million units delivered
worldwide.

Operating income margin: 11.8%

Radio-controlled timepieces

Casio andthe Global Environment

2.4 million units delivered
worldwide.
Top global market share.

Sales: ¥262.1 billion(+0.5% year-on-year)(Source: Casio survey)

Top market sharein Japan(over 50%).*

Casio and Employees

Electronic musical instruments, systemequipment, etc.

* Source: Survey by GfK Japan of the total sales results of over 3,000 consumer electronics dealers.

Net sales (unit: ¥ million)
600,000

559,006

Operating income margin (unit: %)Stock price (highest value, unit: ¥ )

8.0

2,500

580,309523,528

7.0

2,000

6.0

400,000

1,663

5.3

1,500

4.1

300,000

1,283

4.0
1,000

200,000
2.0

100,000
FY2003

FY2004

FY2005

FY2006

0

773

500
0
FY2003

FY2004

FY2005

Performance Target: Fiscal 2007

Performance Target: Fiscal 2007

¥630 billion

8.1%

Development throughSustainable Growth

Sharp Focus on Operating
Income Margin

Since net sales will continue to grow,driven mostly by the Expansive
Businesses, Casio plans to reach¥630 billion in net sales in fiscal 2007.

For Casio, operating income margin
is a vital management indicator.
Casio has set an operating income
margin target of 8.1% in fiscal 2007,
and is working to achieve 10%.
W13FY2003

FY2004

FY2005

FY2006

Dividends ¥12.50(yen per year)¥15.00¥17.00¥20.00FY2006

Casio Corporate Report 2006

Contributing to Society by
Using Capital Effectively
Casio is contributing to the developmentof new technologies and markets byinvesting the capital entrusted to it byshareholders in new business areas with
future growth potential. By returning theresulting profits to shareholders, Casio
is also helping to create a more
affluent society.

Company Data

0

2,190

7.4

440,567

Casio and Society

500,000

Corporate Profile

in Expansive Businesses. Going forward, this approach to management
can secure both sustainable growth and profitability.
Casio is working to reduce the cost-sales ratio for productdevelopment across the entire group. Through efforts beginning in thedesign stage, the number of parts required to produce a product is being
reduced. Common product platforms have another benefit, too:accelerated product development.

Casio has positioned businesses that have maintained top market shareand yield steady profits as Stable Businesses. It has positioned
businesses that are expected to experience significant global market
growth in the future, while also seeing intensifying competition as alarge number of companies enter the market, as Expansive Businesses.
Casio is following a successful strategy of securing stable profits fromthe Stable Businesses while increasing both sales and operating income

CSR Highlights

Casio and the Market
Casio andthe Global Environment
Casio and Employees

Casio people ask themselves questions like these every day.
The following pages provide an overview of Casio’s CSR
initiatives. We invite you to explore this unique Casio
process and take note of its outstanding results.

CSR Management

The questioning doesn’t stop there, however. Casio goes on
to ask: How original is this approach? Does the project havea clear focus on sustainability? Has it really given customers
happiness and delight? Have we provided value that inspires
new trends in the culture?

CSR Highlights

Casio values persistent questioning: “What is this for? Who
is it for? Why are we doing this? What needs improvement?
And to what degree?”Corporate Profile

Casio is committed to frankly reflecting on itself as a public
entity, and is constantly re-envisioning its own futurecontribution to society.

Casio and Society■ Creating Energy from Natural Environmentally Friendly Fuels . . . . . . . . . . . . . . . . . . . . . . . P15■ Providing a Place for Young People to Gain Resiliency for a Meaningful Life . . . . . . . . . . . P18, 19■ Reducing Casio’s Greenhouse Gas Emissions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P20■ Complying with European Environmental Laws . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P21

W14

Casio Corporate Report 2006

Company Data

■ Applying the Mechanisms of Human Intelligence to Manufacturing Technologies . . . . . . . P16, 17

Creating Energy from Natural Environmentally Friendly Fuels

Research & Development

Generator Electricity
cell
stack
H2O and CO2(emissions)

Key Person

Masaharu Shioya
Core Technologies R&D Division
Casio Computer Co., Ltd.

Batteries are a wonderful technology with a history of over 100
years, but they do have shortcomings. Many people find it annoying
to separate spent household batteries from the rest of the trash, as
is required in many developed countries. It seems we have gotten
used to this, however, so we keep using conventional batteries inour mobile electronic devices.

W15

After giving this issue some thought in 1998, I decided to look
into up-and-coming battery technologies. Worldwide concern overthe environment was reaching new heights at the time, and it was
clear to me that the time had come to question the common
assumptions about the manufacture and sales of mobile electronic
devices. I searched for ways to resolve the problem, going back tothe basic principles of physics and chemistry, and reconsidering allof them.
The technology that I finally decided to pursue was fuel cells.
Tiny, easily disposable PET containers (photo 2, right) are filled withmethanol or another fuel, and the fuel is used to generate electricity
to run a mobile electronic device. The empty plastic containers canthen be recycled along with other plastic materials.
A necessity that people everywhere take for granted becomes auniversal need. Casio creates products that meet these needs andmake a real contribution to society. We will continue to develop
technologies and deliver practical applications that help people
achieve the goal of living in harmony with the environment.

Casio Corporate Report 2006

Company Data

“The Solution Was Right in Frontof Us”—Meeting Latent
Universal Needs

Casio and Society

Figure 1: Basic Mechanism

Casio and Employees

Microreformer

Casio has combined its micro reformer
module and its newly developed
fuelcell stack to create a compact,
high-power fuel cell for mobile devices.
Casio’s fuel cell (including the methanol cartridge) (photo 2, right) can
power a notebook PC for about fourtimes longer than a conventionallithium-ion battery of the same volume.
Casio is now
working on thenecessary peripheral
parts and circuits,
and plans to startdelivering samples
for performance
evaluation by fiscal
2008. Casio is well on Photo 2
its way to creating yet Left: Conventional
batteryanother successful
Right: Methanol cartridge(PET bottle)
new business.

Casio andthe Global Environment

Fuel

Methanolcartridge

Oxygenfrom airHydrogen

Casio’s fuelcell stack, which creates
electricity from hydrogen (photo 1, left),has a laminatedstructure of twenty
power-generating
cells consisting ofseparators andmembrane electrode assemblies(MEA).
Photo 1
The highLeft: Fuelcell stackdensity component Right: Micro reformer

Practical Applications for Micro
High-Output Fuel Cells

Casio and the Market

Development of theFuelcell Stack*W/r: A unit for measuring electrical output (watts)
per one liter of volume, used as an index forminiaturization.

CSR Management

The most difficult phase of thisdevelopment project was inventing thereformer (photo 1, right), which extractshydrogen from methanol. Casio applied
its expertise in semiconductor
processing—a long-time corecompetency—and combined it with thelatest nano catalyst and chemical
reaction technologies to develop a
successful micro reformer module.
Casio’s latest module, announced
to the public in spring 2006, integrates
three chemical reactors that producehydrogen and render emissions
harmless and a heater/temperature
sensor on a single chip, which
achieves startup in just six seconds.
The module also boasts a thermallyinsulated construction that keeps theouter surface of the device at only
40°C, despite internal heat of up to
280°C. The module’s specifications
are fully compatible with mobile
device requirements.

mounting is based on Casio’s corecompetencies in water-resistance anddurability. The company has also integrated technologies that optimize gas
flow channels for the characteristics ofthe hydrogen produced by the microreformer, and that improve MEA resistance to carbon monoxide. The result is
19.4 watts of rated output in a cellstack with a volume of only 22 milliliters(65H x 18W x 19Dmm). The rated
power output per unit volume (power
density per unit volume) has reached
882W/r,* the highest in the worldamong cells for use in mobile devices.

CSR Highlights

Casio is striving to realize a truly mobile
society by developing micro fuel cells
that can produce electrical energy
from methanol.
Global research in this field ishighly competitive, and various
methods have been proposed. Casio
has developed and recommended theReformed Methanol Fuel Cell System, atechnology that combines the highpower output and environmental
friendliness required for the mobile
devices of the future.
The basic mechanism of thissophisticated technology involves
extracting hydrogen from methanol, atype of alcohol, and then converting it
into electricity. (Figure 1)
The mechanism behind thistechnology has been known for many
years, but before Casio, most scientists
have never thought it to be viable.

Development of the Micro
Reformer Module

Corporate Profile

Original Casio Technology—
Reformed Methanol Fuel
Cell System

Next Generation Fuel Cellthe Mechanisms of Human Intelligence
CSR Highlights Applying
to Manufacturing Technologies

Production Yamagata Casio Receives 2005 Nikkei“Monozukuri ” Grand Prix

AE system

Flow analysis

Molding CAM

Molding
monitoring

Mold
monitoring

Unigraphics

Product design
specifications

Molded partmodeling

Mold design

Mold production

Jig design

Jig productionMassproduction

Trial production
evaluation
Production
materials

Processmonitoring

Mold process management system(paperless mold drawing)
Production study
CAD-LINE

Measurement
programSmartScorp

NAPO system

SNAPO system

Mold inspection

Quality control

Automatic
measurement

External view ofmetal mold

W16

Casio Corporate Report 2006

Piece inside metal mold

Company Data

MOLD24

Casio and Society

MOLDES

Casio and Employees

Advance study

3D-TIMON

Using the completed 3D design data,
the mold manufacturing process
begins using equipment such as amachining center and an electricaldischarge machine. The 3D digital data
is sent from CAD/CAM design tools toa machine tool connected via the
network, and the tool automaticallystarts processing a mold; all theoperator has to do is to confirm theoperation using a computer. Throughthis process, a mold is completed withminimal errors or problems.
Also, tasks previously performed
only by experts such as shaving andpolishing in units of microns and otherminute adjustments are all done
through the digital network. There arecomputer screens in front of all theoperators in charge of shaving andpolishing, which display the mold partsin 3D. The parts are coded by several
colors, and each color shows each
operator’s part in the processing.
Through this system, it is now possible
for a person with a basic level ofexperience to do the work of a skilled
technician. The computer has enabledregular operators with a basic level ofexperience to do the work previously
done only by experts looking atcomplicated drawings. This technician
support system has greatly increased
accuracy and improved the quality ofmold processing once done by hand.

Casio andthe Global Environment

The Digital Network System for a plastic molding
and precise metal molds factory

Metal mold production

Casio and the Market

Here is an explanation of how thesystem actually works.

After receiving 3D digital data for acellular phone or a timepiece from
Casio Product Design Department, thedata is used to design a metal mold fora plastic housing. Then the completed
metal mold design data is used tocreate a computer simulation of actual
resin flow inside the mold at the time oftrial production with an injection
molding machine. This way, any
problems can be discovered inadvance and resolved.

CSR Management

The Digital Network System
for a Plastic Molding andPrecise Metal Molds Factory

Metal mold design and datapreparation

CSR Highlights

The reasons Yamagata Casio won theaward are described below.
Cellular phone and digital camera
products are subject to rapid
replacement by new models. In order tomeet the short and intensive production
periods for these products and tointegrate the process from metal moldcreation to part molding, Yamagata
Casio has incorporated IT into the entire
production process. As a result, thelead time for metal mold production has
been greatly reduced. This innovation
was recognized for advancing
monozukuri (“true craftsmanship”) inJapanese production technologies.
● All 500 PCs and devices such as
CAD/CAM systems and machine
tools are connected to a network,and each person has a PC.
● Computer intensively manages
ongoing conditions for each metal
mold along with drawings, and all

personnel share the production
schedule through PCs. No paper
drawings are used anywhere in themold factory.
● A mold diagnostic system wasintroduced in the molding process toprevent fatal flaws in the metal
molds. This system measuresultrasound emitted by the moldduring each molding operation,assessing the condition of the moldusing a point system. If the result is
below 40 points, the molding
machine is shut down and the moldis repaired. This enables the impactof a flawed mold to be minimized in a
production period that is shortand intensive.
Thanks to this Digital Network
System for a plastic molding andprecise metal molds factory, Casio’s
cellular phones and wristwatches movefrom development, to production, tomarket in a very short period of time.
Japanese monozukuri manufacturing technologies are facing stiffcompetition from overseas today.
Yamagata Casio is leading the way forother Japanese manufacturers with thissystem. This was another factor in thejudges’ decision to give the award to
Yamagata Casio for implementing
this system.

Corporate Profile

Yamagata Casio Co., Ltd., manufactures cellular phones, wristwatchessuch as the G-SHOCK series, anddigital cameras, as well as metal molds
and molded plastic components for the
products. It also develops and sells
chip mounters for electronic
component mounting equipment.
The Mold Making & Molding
Division, which makes metal molds andproduces molded plastic components
at Yamagata Casio, received Japan’s
2005 Nikkei “Monozukuri ” Grand Prix
for a Digital Network System installedat its plastic molding and precise metal
molds factory.

Trial molding

Casio and the Market
Casio andthe Global Environment

Yamagata Casio

Casio and Employees

Yamagata Casio has pursued thegreatest competitive edge in

CSR Management

Using the conditions just determined,
the mold moves on to the mass
production stage. The factory contains
about 40 injection molding machines,
enabling a molded part to be produced
every 10 seconds. All these machines
are also connected to the network.
Each time one part is finished,process-result data are sent to thecomputer server. The computer
monitors all operations of eachmachine. If there are any irregularities,
an alarm goes off, and if there is apossibility of a defective product, themachine is shut down. The systemprevents defective products fromcoming off the line.
However, since mold production
runs at a very high speed, some moldmonozukuri manufacturing
technologies in Japan by connecting
the entire plant via a digital networkand compiling various kinds ofproduction data. The company is now
determined to keep moving forward,
striving to achieve the greatest
competitive edge in the world in
manufacturing technologies.

CSR Highlights

Mass production and monitoring

breakdowns and damage haveoccurred in the past. Therefore, thismold diagnostic system has beendeveloped in order to prevent suchoccurrences. The system employs
ultrasound sensors and analysis
equipment to check irregularities andassign numerical rating per shot. There
are always symptoms before a moldbreaks down or becomes damaged.
The system identifies these symptoms
and notifies an operator. Preventive
maintenance has eliminated major
mold damage in recent years.
Since the monitoring in the molding
factory produces an enormous amountof data, the difficulty lies in how toconvey it to operators and managers
when a problem occurs. Since one
machine produces 10,000 parts in one
day, the relevant information needs tobe conveyed immediately after aproblem arises. A system has been set
up in the molding factory to send areal-time audio message to atransceiver of an operator, and an
email to the manager’s PC. Even if theoperator is performing other tasks in a
separate location of the factory, he/shewill know right away if there is aproblem. Moreover, though machines
operate with no one around in the moldfactory at night or on holidays, an alarm
email is sent to the cellular phone of
the factory manager in the event of
any trouble.

Corporate Profile

Even for trial molding with a moldalready completed in this way, theinitial 3D data plays an active role. The
system determines the optimal molding
conditions after making close reference
to the database of metal molds &molding, together with the database ofmolding machine & resin, which havebeen built up over the past 15 years.
The optimal conditions are sought inthe shortest possible time by sending
the initial 3D design data to the said
system and running a simulation. The
resulting data is then also compiled,which helps reduce development leadtime, improve quality, and raise
production yields in the future.

Casio and Society

Taking on the Challenge ofCreating Monozukuri
Manufacturing Technologies for
People on Site: How to Work
Smarter, Not Harder
Toshihiko Kuroda
Mold Making & Molding Division
Yamagata Casio, Co., Ltd.

In the Digital Network System recently developed by the Mold
Making & Molding Division, I was in charge of integratingprocessing information such as paper drawings and production
instructions into 3D data to develop a completely paperless molddrawing system that could be accessed whenever needed.

W17

While developing this system, I focused my energies on how
people on site can work smarter. It is natural for mold production tohave paper drawings, and there is a unique culture in which highlevel technicians understand and perform tasks that cannot beshown explicitly on a drawing. To abolish that source, paper
drawings, I had difficulties in seeing processing know-how inheritedfor many years in a new light.
However, owing to the enthusiasm and teamwork of members
involved in mold production, I managed to accomplish my task.
Our customers have expressed astonishment and admiration at
the sight of skilled technicians making molds only by computers
without any paper drawings in a factory. But I feel most rewarded by
the gratitude of my colleagues—people actually working on site.
Although Japanese manufacturing faces a very challenging
environment, I would like to pursue monozukuri and contribute toour business expansion.

Casio Corporate Report 2006

Company Data

Key Person

a Place for Young People to Gain
CSR Highlights Providing
Resiliency for a Meaningful Life

Social Contribution Factory Tours for 10,000 People

Company Data

Casio Corporate Report 2006

Casio and Society

W18

the declining birthrate, aging population, nuclear family lifestyle, andadvance of information technology.
Today’s changing society requires
more youth development initiatives tosecure a positive future. As a good
corporate citizen, Casio sees youth
development as a major component of
its social contribution, and is working todevelop new initiatives in this area.
The “resiliency for a meaningful life”
advocated by Casio is based on threefundamental concepts: awareness (aproper understanding of today’ssociety); integrity (sincere action basedon that understanding); and responsibility (properly taking that action).
Several education institutions in theTokyo metropolitan area haveexpressed interest in participating in
the program. Casio hopes that thisprogram, by providing new sources ofresiliency to youth, will contribute to thedevelopment and sustainability of thesociety of the future. The company isworking on plans to keep expanding
the program.

Casio and Employees

Kofu Casio

Briefing at Casio group company

Casio andthe Global Environment

held at the Tokyo International Exhibition Center (Tokyo Big Sight) in
December 2005, the Casio booth
offered a calculator assembly experience for elementary school students
and presented information on the
Factory Tours for 10,000 People program. During the three days of theevent, 124 children participated in thisactivity, and Casio was able to expand
its community outreach.
In fiscal 2007, Casio will further
expand the scope of these activities to

Casio and the Market

Classroom activity

CSR Management

Young people discover the value offamily ties by coming to see the place
where their parents work. They also
learn that there are close ties between
households, schools, the local community, and companies. They learn about
product construction by having the rare
chance to see how advanced products
are made, and actually trying simple
product assembly themselves. Througha close-up look at the history of Casio
products, they also learn the history ofscientific and technological development behind the various devices theysee every day. All this gives the young
visitors a glimpse into the wonders ofscience. Inspiring presentations by
Casio employees help the children to
discover that they can realize their
dreams through hard work and perseverance. Finally, by witnessing Casio
environmental activities, they learn theimportance of protecting the global
environment. Casio’s dream—theinspiration behind this factory tour
program—is to provide opportunities
for young people to make the discoveries that will help them become theleaders of the future.
Fiscal 2006, the second year of the
program, brought advances to theprogram. The tours became a part ofthe career education promotion program for elementary and junior highschool students sponsored by theJapanese government and the integrated study periods of school curriculums.
The program was entitled, “Make a
Proposal to Casio: Your Own Idea for a
New Calculator,” since calculators are
one of Casio’s main products. Theinterested schools in the Tokyo metropolitan area.
Casio is now actively pursuing
opportunities to advance the Factory
Tours for 10,000 People program
throughout the group. Casio is holding
briefings on the program for groupcompanies under the theme of lifetime
learning for local communities, and is
working to raise employee awarenessabout lifetime learning.
Through joint initiatives with several
companies, Casio is also pursuingplans to promote career skills training
for local youth.
Japanese youth today are facedwith a very different environment, given

CSR Highlights

Factory tour

participants thought about the ideal
calculator, and came up with ideas for
new models. They then prepared theplans, and gave product concept
presentations to Casio employees
actually in charge of product planning.
The students learned how hard it is tothink up a new idea and then try andconvince strangers of the merits of theirproduct concepts.
Through this experience, they got
a better idea of what it means to work,
as well as the satisfaction and selfrealization that work can bring. This
new development has enabled Casio
to further improve the content of theoriginal Factory Tours for 10,000
People program.
Casio was thus able to provide
educational opportunities in fiscal 2006
by bringing together the corporate,
government, and scholastic realms.
The Factory Tours for 10,000 People
program has earned strong approvalfor Casio from both government andlocal communities.
In fiscal 2006, Kofu Casio Co., Ltd.,
invited six schools, or 278 students andteachers, to participate in factory tours.
At the Eco-products 2005 exhibition

Corporate Profile

Casio launched its “Factory Tours for
10,000 People” program in February
2004. The goal of the program is toprovide a place for young people todiscover that family ties, the power ofscience, and pursuing one's dreams
are all important sources of strength fora meaningful life, and also to learn theimportance of being considerateof others.

Otoguro Cherry Trees

W19

Casio Corporate Report 2006

Company Data

While CSR management has gained prominence recently, we
actually had an opportunity to think about corporate social
contribution several years ago within our company.
We were discussing ways to help children become the leadersof tomorrow by using the operations of the plant, and to strengthenties with the local community. These desires led to the creation of
the “Factory Tours for 10,000 People” program.

Casio and Society

General Affairs Department
Kofu Casio, Co., Ltd.

Casio and Employees

Tomoaki Furuya

When children visit our plant and have a different experiencefrom the classroom, they discover and appreciate things such as
family ties, the wonder of science, the power of pursuing one’s
dreams, consideration for others, and the importance of protecting
the global environment. The factory tours are filled with carefullyplanned activities in order to leave a lasting impression on
the students.
These factory tours would not be possible without the support ofmany people. Despite their busy schedules, all of our employees
have worked hard to help out. In the process, the deeper ties havebeen fostered among our staff. We have all gained a sense offulfillment and wonder by watching the children learn.
We are now in the third year of this program, and we havereceived inquiries from various customers. Even activities stemmingfrom a small project such as this can grow into something that tells
the world what Casio is all about.
We hope to keep providing these tours to better contributeto society.

Casio andthe Global Environment

Providing a Place for Young
People to Gain Resiliency for a
Meaningful Life throughDiscovery and Wonder

Casio and the Market

There are currently 30 Otoguro cherry trees growing at the Kofu Casio site. These
cherry trees produce beautiful blossoms every spring, giving wonder and joy to allthat see them.
The Otoguro cherry grows along the banks of the Fuefuki River, which flows
through Chuo-shi, Yamanashi, where Kofu Casio located. Spring blossoms and newleaves appear at the same time on this variety of cherry. With the unusually large
white blossom of the Otoguro cherry, these trees are very special to the local
people. In 1932 however, the banks of the river were reconstructed as a flood
prevention measure, and the original trees were removed. Now, the people in thiscommunity have decided that they want to bring back their beloved Otoguro cherry.
Efforts have been made to propagate and replant the species, using the few
remaining descendants of the original trees.
Kofu Casio has also stepped in to help preserve the Otoguro cherry tree.
In spring 2004, the company planted 15
Otoguro cherries on its premises to help
preserve these historically popular trees
and to beautify the plant. In spring
2005, 15 more trees were planted.
These trees have become a symbol of
the close ties between Casio and the
local community. Casio is committed toproviding more community support,
through tree planting and otherOtoguro cherry blossoms“greening” activities.

CSR Management

Key Person

environment—to have a multiplier effectwithin society. Casio is actively
promoting the program. Further, since
the program is effective in humandevelopment as well as environmental
protection, Casio will also make it a partof its lifetime learning initiative. In the
future, Casio intends to deploy certified
employee instructors throughout Japan
to extend the reach of the Kids’ ISO
14000 Program.

CSR Highlights

Participants in Casio’s “Factory Tours
for 10,000 People” program can see
the steps the company is taking torecycle waste and save energy in its
cafeterias. This gives young people afirst-hand look at an operational sitethat practices environmental
conservation. By making a comparison
with the everyday environmental steps
involving electricity, water and trashthat children take at home or
school, the tours are helping topromote awareness of global
environmental concerns.
Casio is also participating in the
Kid’s ISO 14000 Program developed by
the non-profit, non-governmental
International Art and Technology
Cooperation Organization (ArTech).
Casio employees with instructor
certification in the program are taking
an active leadership role inenvironmental activities for children,
based on ISO principles. Since fiscal
2005, these activities have included
introducing various elementary schools
to the Kids' ISO 14000 Program as partof the Factory Tours for 10,000
People program.
The Kids’ ISO 14000 Program is anenvironmental education program
carried out in Japan and around theworld through UN agencies and theInternational Organization forStandardization (ISO). Based on theconcept of children themselves discovering things that lead to moreenvironmental awareness, the programaims to develop youth with hope andconfidence for the future. This is doneby learning about environmental management and facilitating networking,which helps the children to acquire theresiliency they need to lead a meaningful life.
Casio recognizes the potential of
the Kids’ ISO 14000 Program—aneffective, sustainable method forhelping to preserve the global

Corporate Profile

Promoting ISO Activities
for Kids

CSR Highlights Reducing Casio’s Greenhouse Gas Emissions
Environment Initiatives to Help Prevent Global Warming:
Working to Achieve Fiscal 2011 Targets

Hachioji OfficeCasio Business Service
Co., Ltd.
(Pictured at far right, together
with team members)

I am serving on the energy-saving study team at the Hachioji R&D
Center. I was also a project team member in the planning phase for anew, energy-efficient building that has now been completed. The
building accommodates both the Tokyo Technical Center and the

W20

Casio Corporate Report 2006

Company Data

Katsuyuki Tada

Hachioji Laboratory. After discussions with the building planners, we
adopted the latest in energy-saving technologies, and achieved 20%
savings in energy consumption compared to the combined energy
usage of the former Tokyo Technical Center and Hachioji Laboratory. Theenergy-saving technologies include a weather-optimized thermal storage
system that takes into account weather forecasts to save energy anduses vertical thermal storage tanks to save on power needed to circulate
cold water. The building also boasts a natural ventilation system,completely automatic air-conditioning, lighting, ventilation, and blinds, afree cooling system, and special insulation methods for windows and thebuilding as a whole.
In fiscal 2006, in addition to our Cool Biz efforts, we also saved
energy by adding manual intermediate modes to the nine automatic
operation modes of the heating and cooling system. As a result, we
saved 220,000 KWh of electricity and 31,000 m3 of natural gas,compared to fiscal 2005. The energy-saving study team continues topromote more energy saving measures.

Casio and Society

Working to Reduce CO2Emissions at the Hachioji R&D
CenterCasio and Employees

Key Person

2

Casio andthe Global Environment

Casio has been a leader in innovation
since its founding, thanks to the corecompetence the company has developed in compact, lightweight, slim, andenergy-efficient products. Today, Casio
is working to equip all of its radiocontrolled watches with a solar powersystem that is able to obtain power
even from weak light sources such as
fluorescent lights. The 10.0-megapixel
Casio EX-Z1000 digital camera now
has a still-picture continuous viewing
time of about 13 hours on just a single
battery charge, even with its superbright 2.8-inch wide LCD. The
company’s W43CA mobile phoneoffers continuous talk time of about
220 minutes.
Casio is committed to continuing to
improve the energy-efficiency of its
products. The company is also pushing
forward with R&D to commercialize its

Greenhouse gas emissions

Product Initiatives

Casio and the Market

CO2 Reduction Targets in Three Areas

Casio’s total CO2 equivalent emissions
worldwide in fiscal 2006 were 132,000
tons. In fiscal 2006, Casio joined in theDistribution-Stage Initiatives
Japanese government’s new “TeamCasio continues to close down, comMinus 6%” campaign and also adoptbine, and relocate its distribution
ed the government-encouraged “Coolcenters in Japan. As for overseas
Biz” dress code (casual summer
distribution, part of the cargo being
clothes to reduce office cooling insent to Europe from China directly bysummer). Cool Biz reduced 190,000
air has now been changed to ocean
kWh of electrical consumption at Casio
cargo to Dubai, followed by air cargo
headquarters, compared to fiscal 2005.
to Europe. Cargo to the United States,
At the Hachioji R&D Center, in addition
which was previously sent by sea andto implementing Cool Biz, the company
rail, is now being shipped only by sea.
improved the energy-saving manageThese steps have all helped reduce
ment system, reducing both electricity
Casio’s CO2 emissions.
and natural gas consumption as
described in the box below.
As described above, Casio is
The Hachioji R&D Center is now
actively engaged in efforts to help
examining technologies for reducing
prevent global warming—in the three
the use of sulfur hexafluoride (SF6) gas,
distinct areas of products, business/after the successful replacement of
production sites, and distribution.
NF3 cleaning agent at the Kochi Casio
manufacturing site.
Casio has already achieved CO2 and SF6 emissions, and emissions per unit,
at sites in Japan and overseas
the fiscal 2011 energy-saving
SF6 emissions in Japan
SF6 emissions (CO2 equivalent emissions)(CO2 equivalent emissions)(FY2001 basis) (%)
targets (fiscal 1991 basis) set by
CO2 emissions per unit of production
Overseas
CO2 emissions
Japan’s four electrical andat overseas sites (FY2005 basis) (%)
CO2 emissions per unit of actual production
CO2 emissions in Japan
electronic industry associations.
at sites in Japan (FY2004 basis) (%)
300%
241
220
Further steps are required,206
271(Thousands of tons-CO )however, in order to achieve
100
107
105
Casio’s own, more challenging
90
100
100
100
89
95
targets. The company is formulat- 80
100%
86 10082
81
94
ing the following measures in
78
70
75%
fiscal 2007 to step up its efforts60
to achieve its fiscal 2011 targets.
50
50%
40
(1) Setting targets and managing
30
24
24
measures by site.
19
20
16
15
(2) Introducing IT mechanisms to
19
17
15
14
10
provide monthly updates on
7770FY2001 FY2002 FY2003 FY2004 FY2005 FY2006
FY2011 targets
environmental performance.

CSR Management

Business andproduction Distribution
sites

Business and Production
Site Initiatives(3) Introducing supplementary measures based on the Kyoto
Mechanisms (Clean Development
Mechanism [CDM], emission credit
transactions, Certification of GreenPower, Joint Implementation [JI]).
(4) Establishing a strategy for investment in energy-saving facilities.

CSR Highlights

Products

Reformed Methanol Fuel Cell System,
which has less impact on the environment than batteries (see page 15).

Corporate Profile

Casio has put in place the following
Casio Environmental Action Plans tocounter global warming, each of which
has targets to be achieved by fiscal
2011: (1) developing eco-products;(2) saving energy and reducing greenhouse gas emissions at business andproduction sites; and (3) lowering
emissions in the distribution stage (seepages 32 and 33).

Complying with European Environmental Laws

European Regulation Initiatives

Products at the end of the life cycle
Recovery point (collection location designated by local authorities)
Communication

Reference: Casio Europe Website
Recovery andrecycling fee

RecoveryCasio Europe

Recovery and recycling provider

Information details disclosed to
product recyclers● Product net weight● Presence of harmful substances thatmust be removed, and location
inside end-life-cycle product

Shigeo Kojima
Casio Europe GmbH
(Pictured at right, with Andrés García,
Environmental Manager)

I serve as a coordinator between our Tokyo headquarters and the
local sites for the WEEE and RoHS Directive compliance project.
Stationed in Europe, my job is to build recovery and recycling
systems for Casio products in the EU member states, and to planand coordinate information gathering for smooth and efficient

W21

compliance with the WEEE and RoHS Directives. Through thecourse of my work, I have become aware that regulatory thinking
and culture are different in the EU and Japan. For example,
directives and regulations in the EU are often created before all
ambiguities are cleared up, based on the assumption that there will
be further technological progress. Even when the regulations cameinto effect, the final specifications and decision-making standards
still seemed vague to me.
The most difficult thing about this process was that, aftergathering as much information as possible in Europe, and thenmaking comprehensive determinations from the standpoint of risk
management, I had to decide on the policies myself. Fortunately,
the implementation went smoothly thanks to the complete
cooperation of the people in the relevant departments in Tokyo.
Given European consumers’ high level of concern for theenvironment, an active commitment to legal compliance willcontinue to be important as we work to ensure that our customers
can keep enjoying Casio products.

Casio Corporate Report 2006

Company Data

Completed Inspection and Onsite
Measures for the WEEE andRoHS Directives

Casio and Society

Key Person

Looking to the future, Casio plans totake steps in accordance with thedevelopment of the REACH Regulationand EuP Directive. Casio Europe is
exchanging information with theEnvironment Center at Casio Computer
Co., Ltd., to determine what measures
Casio needs to take.

Casio and Employees

Recycling

Future Compliance withHarmful Substance
Regulations

Casio andthe Global Environment

Joint management organization (EAR)

http://www.casio-europe.com/de/
unternehmen/umwelt/weee/

Website page (image)

In January 2006, Casio factories beganshipping products that comply with theall stipulations of the RoHS Directive.
Casio Europe has constructed amanagement system for RoHScompliant products in cooperation withthe headquarters of Casio Computer
Co., Ltd. Inventory progress management for products that do not conformto the RoHS Directive was carried out,
and the switchover was completed by
July 1, 2006, the date the directive
took effect.
Casio will continue to prepare
declarations in conformity with the
RoHS Directive for each product or
product line.

Casio and the Market

Consumers (end users)

Complying with the European
RoHS Directive

CSR Management

Example recycling system
in Germany● Presence of batteries and theirlocation during use● Presence of LCD panels that exceed
100 cm2, and their location during use● Other information required byrecycling providers

CSR Highlights

Casio has started to set up a recovery
and recycling system that meets EU
standards in order to comply with theEuropean WEEE Directive for proper
disposal of electrical and electronic
devices. Casio Europe GmbH, locatedin Germany, has been the host for thecompany’s WEEE promotion projectsince 2004.
In fiscal 2006, Casio completed thefollowing legal requirements:● Printing or labeling required marks
on products● Registering as a manufacturer in EU
member states which have established new WEEE Directive regulations● Contracting with recycling providers
in principal countries
Companies must conform to theindividual regulations of each of the 25
EU member states. This is made morechallenging in that interpretations of the
WEEE Directive, language, and culture
vary a great deal across the EU. Casio
is expending enormous resources—
including manpower, time, andcommunication effort—to develop
consistent policies to guide decisionmaking on this issue at Casio Europe.
In July 2006, Casio completed thenecessary product information
disclosure to recycling providers. The
information provided includes productweights, as well as the presence andlocation of specified substances—andis intended to ensure proper recyclingof products at the end of the life cycle.

Corporate Profile

Complying with the European
WEEE Directive

CSR Management

Corporate Creed and Charter of Creativity
The Charter of Creativity for Casio has been established based on Casio’s corporate creed of “Creativity
and Contribution.” The creed and charter provide the foundation for the execution of Casio’s CSRdriven management.

Casio and Employees

We will value creativity, and ensure that our products meet universal needs*.

Casio andthe Global Environment

First Chapter

Casio and the Market

Charter of Creativity for Casio and Casio Common Commitment- A Promise from Everyone Working at Casio-

CSR Management

Charter of Creativity (card)

CSR Highlights

stakeholders, and to achieve uncompromisingly fair,transparent corporate governance.
Given this situation, Casio is encouraging all of its
employees to reconsider the significance of Creativity andContribution, and to maintain their awareness of the corporate
creed. This will enable Casio to sustain its creative corporate
culture, while continuing to contribute to societies aroundthe world.
In light of these trends, on June 1, 2003—the anniversaryof the company’s founding—the Charter of Creativity for
Casio was established to better articulate the meaning of thecorporate creed today for all employees. In December of thesame year, the Casio Common Commitment was also
instituted to provide a more specific description of theemployee conduct that is expected and valued at Casio.
All Casio employees carry a card printed with the Charterof Creativity and Common Commitment. Top management
has also issued messages describing the kind of company
that Casio ought to be, and published them on the company’s
intranet. These steps are enabling Casio to secure a groupwide understanding of its commitment to CSR.

Corporate Profile

The calligraphy in the photo
here—“Creativity andContribution” in Japanese—
was done by Casio’s founder,
the late Tadao Kashio.
Casio got its start with theinvention of a small fully
electric calculator, which was
unique in an era whenmechanical calculators were
the norm. Ever since, thecompany has been true to its
commitment to contribute tosociety by offering the kind of
Corporate creed
original, useful products that
only Casio can.
The people of Casio prioritize the values of Creativity andContribution in the performance of their work. These values
are deeply ingrained in the company and its people: they are
passed down from generation to generation of employees
almost like a genetic heritage.
Today’s shorter product development cycles andincreasingly complex specifications, however, have made thecompany’s operations more and more specialized. Along withthis trend, each person’s job requires increasingly specificknowledge and skills. As Casio grows and its operations
stretch around the globe, the “distance” between top
management and frontline employees is growing wider.
At the same time, society now expects companies tostrengthen their CSR management with an awareness of all[Casio Common Commitment][Casio Common Commitment]

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

We will back up our words and actions with trustworthiness and integrity, and work as
professionals.

[Casio Common Commitment]

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

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Casio Corporate Report 2006

Company Data

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

Casio and Society

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

CSR Management

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

Board of Auditors
The board of auditors consists of three auditors, two of themexternal. In accordance with audit policies and responsibilities approved by the board of auditors, auditors attend
board of directors’ meetings and meetings of the operating
officers. In addition, they perform careful audits by gathering
information and receiving reports from directors and others,
and by reviewing resolution documents relating to important
decisions.

CSR Committee

Board of Directors
The board of directors is tasked with making prompt,
reasonable management decisions. Board meetings areattended by directors and auditors, who discuss and makedecisions on important business issues.

Board of Operating Officers

Casio andthe Global Environment

The CSR Committee is comprised of the directors andauditors, and the company president serves as chairman.
The committee discusses matters related to CSR, including
the determination of CSR priority issues, initiatives, policies,
and systems for execution. The decisions made by the CSR
Committee for each CSR issue are then transformed into
specific activities by each department concerned. The CSR
Committee is currently addressing the issues of compliance,risk management, and protection of personal information.

Casio and the Market

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.

CSR Management

Internal Audit Department

CSR Highlights

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 businessgoals and continuing to raise corporate value. This recognition guides the company’s ongoing efforts to improve
corporate governance.
In June 1999, Casio Computer Co., Ltd., made a change
in its board of directors, reducing its size by half, from 24 to
12 directors. At the same time, the company adopted asystem of operating officers to clearly separate the management oversight and execution functions. In December 2004, a
CSR Committee was also established to drive the company’sefforts to fulfill its corporate social responsibility.
With the adoption of this system, Casio Computer Co.,
Ltd., has built a corporate governance system that consists of
the operating officer system, internal audit system, and CSR
Committee, in addition to the board of directors and theboard of auditors. The objective, role and membership ofeach of these bodies are described below.

Corporate Profile

important affairs relating to the execution of business
operations. This mechanism enables smooth implementationof company-wide adjustments and measures.

Corporate Governance System

Casio and Employees

Meetings of the board of operating officers are attended byoperating officers, directors and auditors. They deliberate on

Election anddischarge

Casio and Society

Audit

Board of Auditors
Auditors

Audit staff

Audit

Election anddischarge

Appointment,

Board of Directors dismissal,
Directors

andoversight

Oversight

President and CEO

Board of operating Oversightofficers
Operating officers

Business divisions
Group companies

CSR Committee
Subcommittees

Internal audit

Internal Audit Department
Accounting audit
Election anddischarge

Accounting auditor

Accounting audit

W23

Casio Corporate Report 2006

Company Data

General Meeting of Shareholders

Corporate governance system diagram

CSR Management

Compliance and Risk Management
Casio is executing CSR-driven management that emphasizes the complete integration of everyday
business and CSR initiatives. This is the most direct, pragmatic route to realizing the corporate creed of“Creativity and Contribution.”

Company Data

CSR Committee
Officer in charge of audits
Chief Risk Officer
Risk Management Committee Office
Risk Management Committee
Risk managing departments
Person responsible fordepartmental risk management

Person responsible fordepartmental risk management

Person responsible fordepartmental risk management

Person in charge of
departmental risk management

Person in charge of
departmental risk management

Person in charge of
departmental risk management

W24

Casio Corporate Report 2006

Casio and Society

Risk management system

CASIO Style

Casio and Employees

Along with the establishment of the Charter of Creativity for
Casio and the Casio Common Commitment in 2003, printed
cards featuring both texts were issued to each employee.
Every employee has signed one and carries it as a reminder.
Every year, company officers and department heads signa pledge that they will observe these company policies andCasio andthe Global Environment

Compliance and Risk Management

Casio and the Market

On September 22, 2005, Casio Computer Co., Ltd., received arecommendation from the Fair Trade Commission for a violation of the
Act against Delay in Payment of Subcontract Proceeds, etc. to
Subcontractors (the Subcontract Act) concerning a reduction inamounts paid to subcontractors.
Casio Computer Co., Ltd., and certain suppliers had agreed inadvance that, when the company ordered work exceeding a certain
normal value within a given period of time, it would pay an agreed
reduced amount, less than the actual value of the order. Despite themutual consent of the parties, however, the Fair Trade Commission
determined that part of this operation constituted a violation of the
Subcontract Act.
Casio Computer Co., Ltd., regarded this recommendation with theutmost seriousness, and set up a Compliance Committee on the
Subcontract Act that includes group companies. The company also reinspected all of its subcontractor transactions, educated the persons
involved, revised its procedures, and made other efforts to improveCasio’s compliance system. The company has taken thorough action toensure legal compliance and prevent any reoccurrence of suchan incident.

CSR Management

Recommendation from Japan Fair Trade Commission
Following a Violation of the Subcontract Act

CSR Highlights

As president Kazuo Kashio said in his message at the front of
this report, Casio has been: (1) striving to realize its corporate
creed of “Creativity and Contribution” since the very beginning; (2) working towards improvement of its corporate value
by reinforcing its system of internal controls; (3) creating newvalue to help resolve various issues facing the global community; (4) implementing environmental innovations that
integrate resource conservation and energy saving features;and (5) increasing transparency by creating interactive
communication.
In order to realize these commitments, Casio is promoting
various policies such as adherence to the Charter of Creativity for Casio and the Casio Common Commitment, effective
compliance and risk management, environmental protection
activities that include management of harmful chemical substances, and interactive communication with stakeholders.
In order to integrate everyday business with CSR
activities, Casio set up a CSR Committee in 2004, consistingof the company directors and auditors. This committee
discusses and mandates specific policies and strategies foreach CSR issue.
Casio has also been working urgently to reinforce its
system of internal controls, responding to legislation in thewake of the recent series of corporate scandals both in andoutside Japan. The company is committed to meeting stakeholder demands for fair and transparent corporate
management.
Each management department at Casio has long been
independently engaged in preventive measures for anticipated risks and in ensuring compliance with all relevant laws,social norms, and corporate ethics. Now however, Casio isalso pursuing a group-wide approach to strengthening
compliance and risk management efforts.

take responsibility for educating their subordinates andcolleagues about them. The previously established Casio
Code of Conduct has also been revised, and serves as thebasis for the good conduct of all employees.
In order to ensure that all Casio employees are wellinformed about and adhere to all compliance requirements,
Casio has launched CASIO Style, an intranet site for its
employees. The site includes messages from top management on the type of company Casio should strive
to be.
In addition, subcommittees have been set up under the
CSR Committee to deal with important laws that affect theentire company such as the laws on the protection of personal information and export management. This is part of acompliance system that also includes the group companies.
Meanwhile, Casio has established basic policies for risk
management that include group-wide compliance, based on
the corporate creed and the Charter of Creativity for Casio.
The company is working to create a risk management systemthat complies with Japan’s Company Law, which took effectin May 2006, and the revised Securities Exchange Law,
which was passed in June 2006 and will take effect in thenear future.

Corporate Profile

Executing CSR-driven Management

Subcommittees

CSR Management

Personal information protection system

Casio and Employees
Casio and Society

Personal information protection system
CSR Committee
Officer in chargeof audits

CPO* and personal
information manager

Personal Information
Protection Office
PersonPersonresponsible forresponsible forcustomer service information systems
Contact for mattersrelating to personal
information*CPO=(Chief Privacy Officer)

Personresponsible
for education

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

Casio Corporate Report 2006

*Privacy Mark :A program where theJapan Information
Processing Development Corporation, apublic-service foundation, evaluates theadequacy of corporate
protective measuresrelated to the handlingof personal data.
Companies that arefound to have adequate
protective measures inplace are certified andpermitted to display thePrivacy Mark.

Company Data

W25

Casio andthe Global Environment

Casio is aware of its important social responsibility to keep
secure information that it collects from customers and otherstakeholders in relation to its business activities. Casio strives
to maintain the highest level of information security. In anticipation of full implementation of Japan’s Act on the Protectionof Personal Information in April 2005, Casio launched its
Protection of Personal Data Project in June 2004, to ensurethat all employees of the group are able to manage personal
information properly. At this time, Casio began formulating
and implementing specific policies and procedures. Then, in
February 2005, Casio established its Policies on Personal
Information Protection to specify the methods of properly
securing personal information. Casio has established all therules needed to ensure full protection of personal information,and is ensuring that all its officers and employees have athorough understanding of them.

Casio and the Market

Philosophy on personal information security

As part of Casio’s drive to strengthen its
system for safe and proper handling of
personal data, Casio Computer Co., Ltd., has
worked hard to qualify for the Privacy Mark*certification. As a result of these efforts, the company received the Privacy Mark certification on December 27, 2005.
In fiscal 2005, all personal data held by the company wasinventoried, rated, and subjected to a risk analysis, meeting
the requirements of the JIS Q 15001 compliance program
relating to personal information protection. Based on the
results of this analysis, the company established various rules
and took additional steps. These steps promoted as a PDCA
cycle (plan, do, check, act) management system, including
education for all employees and officers, tighter control of
information system access and computer logs, reexaminationof agreements on the handling of personal data signed withits business partners, and implementation of internal auditing,correction, and other improvements. After completing these
efforts, Casio Computer Co., Ltd., filed an application forcertification in March 2005. After a documentary audit andonsite inspection, the company was granted Privacy Markcertification in December of the same year.
Accompanying the Privacy Mark certification, Casio willcontinue to take further measures for the protection of personal information in and outside the company. By strengthening
its information security and personal information protection,
Casio strives to maintain the confidence of its customers.

CSR Management

Personal Information Protection

Privacy Mark certification

CSR Highlights

In April 2006, after Japan’s Whistleblower Protection Act tookeffect, Casio established a Whistleblower Hotline and appointed an employee in charge of the whistleblower system at
each of the group companies.
The hotline has been created to respond to opinions,questions and queries not only from current and retired fulltime Casio employees, but also from contract, part-time, anddispatched workers, as well as subcontractors, and anyone
else doing work for Casio in any capacity. The hotline enables
Casio to discover problems in the early stages, so thatmeasures can be taken to avoid incidents, with the goal ofpracticing fair and honest management. The confidential
hotline has offices in and outside the company, and people
with important information to report are able to call a special
number, send an email, fax, or letter, or directly visit theoffices in person. Accordingly, this hotline serves as a neutral
and fair intermediary between the company and people withinformation to report. The information provided to the hotline
is subject to factual confirmation by the Whistleblower Hotline
Office, which is headed by an officer of Casio Computer Co.,
Ltd. The office checks whether the reported activity may beillegal, dishonest, or unethical. If any problems are discovered, an investigation team is immediately formed tocheck and verify the activity, and then appropriate measures
are taken.
As the Whistleblower Hotline Office controls all theinformation obtained from the group companies in Japan
regarding these activities, the privacy of those making calls
and those that are the subject of the calls is thoroughly
protected. Casio has also established Basic Regulations for
the Whistleblower Hotline, which prohibit the dismissal of an
employee for making a hotline report. They also prohibit
demoting, or cutting the pay of such an employee, or ordering the employee to stay at home, discriminating against theperson through pay, or forcing the employee to retire. The
protection of hotline callers is carefully secured.

Casio Computer Co., Ltd., has appointed the Executive Vice
President to the position of Chief Privacy Officer (CPO) andpersonal information manager and constructed a system forpersonal information protection under his direction. With thesupport of top management, all employees and officers arebeing urged to cooperate with measures to protect personal
information. In March 2005, the company set up the Personal
Information Protection Office, which inherited the functions of
the Protection of Personal Data Project. Three positions werecreated in this office to handle customer service, information
systems, and employee education, respectively. In addition,
two leaders were appointed in each department to promote
efforts relating to personal information protection at the
department level.

Corporate Profile

Whistleblower Hotline

Casio and the Market

Stable Supply of Products

Responsibilities
Casio is working to strengthen its global supply chain andto Customers

meet the rising demand for its products by making the mostof digitalization and expanding the reach of its network.

Policies on Stable Product Supply●Yamagata Casio●Casio Korea
Timepieces●■Jiu Shui Keng Casio
Electronics Factory

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

Electronic dictionaries, electronic musicalinstruments, TFT LCDs

●Contract
manufacturers●Guandu Bohsei Electronics Limited(Wengyuan County)

Cellular phones

Timepieces■Casio Micronics●Casio Electronic Technology(Zhongshan)

Electronic components

Electronic dictionaries, electronic
musical instruments●Kofu Casio●Casio Electronics(Guangzhou)

Systems, LCDs

Timepieces■Kochi Casio●Casio (Thailand)

TFT LCDs

Timepieces●■Contract manufacturers
TFT LCDs, ECR■Casio Singapore
LCDs

At work at Casio Electronic Technology(Zhongshan)

W26

Casio Corporate Report 2006

Company Data

Electronic calculators, electronic
musical instruments, printers,
timepieces, digital cameras, systems,
cellular phones

Casio and Society●Electronics segment ■Electronic Components segment●Contract manufacturers

In December 2005, Casio liquidated two subsidiaries: Casio
Electronics (Zhongshan) Co., Ltd., a production site for electronic dictionaries and calculators, and Casio Electronics(Zhuhai) Co., Ltd., a production site for electronic musicalinstruments. The production for both these product types wasthen taken over by a newly established company, Casio
Electronic Technology (Zhongshan) Co., Ltd. (floor space
40,000 m2). As the two product categories are in demand indifferent seasons of the year, this reorganization has evenedout production load fluctuation in a mutually complementary
form, thereby greatly improving overall plant operating efficiency. At the same time, a common production format was
adopted for Casio Electronic Technology (Zhongshan) andJiu Shui Keng Casio Electronics Factory (operated by Casio
Computer (HongKong) Ltd.), which
has increased mutualcompatibility andreduced risk related
to level of operation.
In the future,
Casio plans to use
Casio Electronic
Technology (ZhongCasio Electronic Technology (Zhongshan)shan) in order to carryout concentrated
management andoptimization of load
distribution for all ofSouthern China,
including production
consignment companies outside of thegroup.

Casio and Employees

Production and supply systems for individual products

Production System for Electronic
Products

Casio and

(1) Shortening production lead-time and improving planning and execution accuracy through the streamliningof the supply chain (part vendors – factories – distribution – sales – service) based on information technology.
(2) Building good relationships with contracted suppliers
that provide Casio with the needed parts so as to realize stabile material procurement.
(3) Creating a decentralized production system, featuring
production at dual sites, that can help manage various
risks involved in manufacturing. Maintaining flexibility todeal with risk by having at least two Casio Group sites
produce each item, and ensuring each factory produces multiple items.
(4) Constructing an optimum production system that corresponds to characteristics of location for each product(market proximity, technological level, material procurement environment, labor costs, logistics costs, andforeign-exchange risk).

Casio and the Market the Global Environment

In order to provide customers with products at more reasonable prices, Casio performs 60% of its manufacturing (on amonetary basis) outside of Japan.
Consequently, issues such as changes in various politicaland economic systems and cultural backgrounds that differ
from those in Japan, economic conditions, exchange rate
fluctuations, and compromise of technological secrets havebecome important risks for which the company needs
to prepare.
Casio is reorganizing and strengthening each production
site in the group to produce multiple items, while increasing
efficiency and reducing cost rates. By optimizing the deployment of human resources at management sites in Southern
China, promoting functional efficiency, and strengthening
internal control, Casio aims to increase the speed of its
response in the event of an accident.

CSR Management

Satisfying and supporting customers with a stable supply of
products is one of the most basic responsibilities of a manufacturer. Market conditions depend on the economic situation
in a particular region, as well as Casio’s competitiveness inthe market. Casio must maintain an effective supply chain
system in order to deliver products to customers at the righttime with the right quality and price.
Based on this point of view, Casio is striving to strengthen
and improve the quality of its global supply chain by upholding the four policies listed below.

CSR Highlights

Strengthening Production and
Supply Systems

Corporate Profile

Philosophy on Stable Supply

Casio and the Market

Responsibilities
to Customers

Research and Development of
Next Generation Products
Pursuing research and development of creative technologies
and products with sights set on the next generation.

10,0005,000
0FY2002

FY2003

FY2004 FY2005 FY2006

Research and Development
Organization
Casio’s research and development is organized into a primary Research and Development System tasked with basic
research and developing elemental technologies and nextgeneration products, and a Department-based Development
System that handles product development that is directly
linked to individual departments.

Research and Development System
The Research and Development System includes the CoreTechnologies R&D Division and the Research andDevelopment Center, which are set up within Casio Computer
Co., Ltd. These departments develop technologies to makeinroads in new business fields, as well as fundamental technologies that are shared by all business operations. They also
perform research and development, including developmentof next-generation products and process technologies. In
order to tackle technological fields where long-term growth isprojected and technology themes that have the potential of
becoming next-generation core technologies, Casio is promoting joint research with outside research organizations andthe formation of alliances with other corporations.

Department-based Development System
Development organizations set up within various departments
and Casio group companies operate under the Departmentbased Development System. Here, research anddevelopment of new technologies and production technologies relating to individual products are carried out incooperation with sales departments.

Core Technologies R&D Division
Development of next-generation compact and energy-saving technologies,
process development, and the creation of high-density packaging technologies.
Research and Development Center
Exploration of new business fields and development of next-generation products.

List of research themes / joint research partners (in random order)
List of research themes
Fuel cells, WLP/EWLP®, organic EL, thin film nanotechnology for next-generation information devices, basic
technology for the building of a nano-medicine production

Department-based
Development
Systembase, equipment noise reduction, environmental noise
Product
Development HQIndividual departments
Development of products that are directly tied to the items soldmeasurement, etc.

Design Center
Development and planning of designs that are directly tied to the items sold

List of joint research partners

Electronic Component Department
Development of products that are directly tied to display products

Kochi Prefecture, Kyoto City, Kochi University of Technology,
Kyushu University, Kyoto University, Kogakuin University,
Yokohama National University, Saitama University, University

Casio Micronics
Development of high-density packaging technology for semiconductorsof Tokyo, Tokyo Institute of Technology, University of ElectroCommunications, Tohoku University, Tokyo University of

Casio Hitachi Mobile Communications
Development of cellular phones

Agriculture and Technology, etc.

W27

Casio Corporate Report 2006

Company Data

Research andDevelopment
System

14,085 14,114 14,187

Casio and Society

Cooperation

15,00018,205

Casio and Employees

Research and development system diagram

16,616

Casio and* IP technology: Internet protocol (IP) technology manages communicationroutes and device addresses on networks.

Research andDevelopment System

Casio and the Market the Global Environment

Casio’s core competence lies in high density packaging, LSI,
software/IP,* communications and digital broadcast, information system, and electronic component technologies.
Accordingly, the company is developing products and technologies that are focused on these proprietary technologies
and are also compact, lightweight, slim, and energy efficient.
Casio is creating advantage through the human interface
technologies and expertise that the company has amassed
by developing its diverse range of consumer products.
Casio is also currently concentrating its efforts on development in the field of image digitalization (digital cameras).
This effort capitalizes on the company’s digital technologies,
which have their roots in Casio electronic calculators andhave now expanded into fields like sound (electronic musicalinstruments) and text digitalization (electronic dictionaries).
Casio is also stepping up its efforts to construct a mechanism to consolidate the knowledge of experts within andoutside the company. It is doing this through the formation ofpartnerships and alliances with outside organizations, suchas public research centers and universities, in fields where
medium to long-term growth is anticipated, and in technicalfields with potential to become innovative core technologies.

Department-based
Development

CSR Management

Research and Development Strategies

Breakdown of research and development
expenditure by business division (Unit: ¥ million)

CSR Highlights

Guided by its corporate creed of “Creativity andContribution,” Casio is moving forward vigorously with its
research and development efforts, aiming to contribute tosociety through the development of innovative products.
The electronics industry is a place of rapid technologicalinnovation. Committed to building cutting-edge technology
and the latest electronic components into its products, Casio
continues to provide the world with original product concepts
and designs that stimulate new demand.

The company
spent ¥18,205 million
on research anddevelopment in fiscal
2006. The expenditure was broken
down by businesstype and by segment
as shown at right.

Corporate Profile

Research and Development Policies

Casio and the Market

Earlier technology

True Voice

True Voice expands the sound reproduction range.

Casio and the Market the Global Environment

Digital Terrestrial Broadcasting High-sensitivity
Tuner Technology

Casio andW41H cellular phone with terrestrial
digital broadcast receiver

Casio and Society

Products featuring part of this technology were releasedin February 2006. Casio will continue to develop technologythat incorporates OFDM demodulation circuits together withantenna and tuner RF circuits. Casio is constantly improving
the efficiency of this tuner technology, thereby increasing theperformance of One Segment receivers, most notably cellular
phones.

Casio and Employees

Following the start of digital terrestrial broadcasting in Japanin December 2003, One Segment broadcasting for reception
by cellular phones commenced on April 1, 2006. To maintain
good cellular phone reception, tuner technology that enables
reception of digital broadcast signals while on the go over awide area is indispensable. For several years, Casio worked
to develop such tuner technology and has come up withorthogonal frequency-division multiplexing (OFDM) demodulation circuits, which can greatly improve sensitivity compared
to conventional technology. The circuits incorporate threetechnologies: (1) technology that not only performs analysis
and correction of digital broadcast frequency and signal
strength, but also signal processing even with time fluctuations; (2) technology that controls an RF tuner so that optimal
signal reception conditions are maintained even when signals
are distorted by reflection off a building or for other reasons;and (3) technology that controls the directional characteristicsof the primary antenna by raising the voltage of the auxiliary
antenna to receive stronger signals.

CSR Management

electronic dictionary’s CPU instead. This has resulted in a
low-cost, energy-saving product with improved battery life. In
the future, Casio will expand the number of word and dialogue pronunciations through better compression rates, andwill apply the technology to products other than electronic
dictionaries by adapting it for other applications.

CSR Highlights

Casio Computer Co., Ltd., has developed a voice function for
its electronic dictionaries, far surpassing the potential of
paper dictionaries. With sound quality that is close to a real
voice, this technology provides more realistic sound andlonger battery life, all at a reasonable price.
Since 2005, Casio electronic dictionaries have featured
Casio’s own True Voice sound compression format for better
language learning. This technology has expanded the soundreproduction range compared to previous electronic dictionaries. By faithfully reproducing vowels and consonants it is
now possible for users to more clearly hear the sound of anative speaker pronouncing the word by itself or in a dialogue. Moreover, the specialized LSI has been eliminatedthrough technology that decodes the compressed sound athigh speed, and the computing is performed by the

Corporate Profile

Development of Sound Compression
Technology

Company Data

Development of Biometric
Authentication Technology
Given the popularity of online transactions and the exchangeof documents over the Internet via computers and mobile
devices, information security has become a pressing issue.
That is why Casio Computer Co., Ltd., has been researchingand developing core technologies related to information
security. In particular, Casio has been developing fingerprintscanning devices and fingerprint authentication algorithms
that can serve as biometric authentication technologies that
help identify the user of the device. Casio’s devices have thespecial ability to obtain high-quality images from various
types of fingerprints, and the authentication algorithms can
W28

handle a wide rangeof fingerprint image
quality. Consequently,
it is now possible tohandle a variety ofBiometric authentication device
fingerprint images,
which vary by the person’s lifestyle and occupation. This
technology can affect vast numbers of people, and is particularly important for applications such as online transactions
and document exchange, where easy-to-use fingerprint
authentication systems are required.
Casio Corporate Report 2006

Casio and the Market

Cross-sectional view of a WLP
Copper post

Protective film

systems-in-a-package (SiP), making mass production
possible at Casio’s partner manufacturers of printed circuitboards. The company has also established the EWLP Consortium in order to promote greater use of EWLP technology
in the industry.

Genetic diagnosis using biosensors
Excitation lightdevelopment of biosensor technology. The aim is to realize
compact, easy-to-use biosensor systems that can enable
genetic diagnosis in hospitals, and eventually at home.
* Single Nucleotide Polymorphism (SNP): A DNA sequence variation occurring in a single nucleotide (A, T, C, or G) of the genome that enables thedetermination of susceptibility to a disease. It is estimated that there arethree million SNPs for human beings.

*OLED display: A device that displays text
and images by using organic light emitting
diodes that produce light when an electric
current is passed through them. Because
they are self illuminating, OLED displays
require no backlighting. They thus consume less electricity and are thinner thanliquid crystal displays. OLEDs provide awide viewing angle and a fast response
speed for smooth picture movement. For
these reasons, they are expected to
OLED display become the next-generation display.

Casio’s own distinct printing OLED process and amorphoussilicon TFT device design.
In the future Casio will focus on the printing OLED
process and hyper amorphous silicon TFT (HAST) technology
application for small displays. In addition to developing highresolution, high-productivity technology, the company aims to
reduce flame area (outside of the view area) to increase
added value in small size displays.
Casio Corporate Report 2006

Company Data

W29

Emitted light detection
by photosensor

Casio and Society

Casio Computer Co., Ltd., is pursuing the development oforganic light emitting diode displays (OLEDs) that employ anamorphous silicon TFT drive and a printing OLED. This effort
is guided by the company’s commitment to developing
energy-saving, space-saving and environmentally friendly
technologies that are based on a simple design and manufacturing process.
In fiscal 2006, Casio began developing small flat panel
displays (FPDs) for portable information devices, adding thisto its existing development program for large FPDs. As aresult of this effort, Casio has realized improved peak brightness, aperture ratio, writing ratio, and image characteristics.
This was achieved through the adoption of custom driver LSI
and a new drive method, as well as high aperture ratio andhigh definition technologies. These technologies utilize

Emitted light

Casio and Employees

Research and Development of OLED
Display*DNA
Absorption

Casio and

There is a growing need today for new technologies that canhelp reduce medical costs. Casio Computer is carrying out
joint R&D with Tokyo University of Agriculture and Technology
in order to realize DNA diagnosis utilizing TFT photosensors
which form the core of biometric authentication devices, which
Casio is also developing. Presently, basic research is being
carried out in the following technological areas: (1) immobilization of DNA on a sensor; (2) chemical reaction processing
on a sensor; and (3) single nucleotide polymorphism (SNP)*
determination based on fluorescent labeling, in diagnosis
models that perform SNP determination, which has a strong
relation to human alcohol sensitivity. By directly immobilizing
DNA on a sensor, it is possible to make the entire system
more compact. In the future, Casio will continue research andCasio and the Market the Global Environment*1. Wafer Level Package (WLP): This is a new semiconductor-packaging
technology that enables copper redistribution, electrode terminal
formation and resin encapsulation to be done in the wafer stage.
*2. Embedded Wafer Level Package (EWLP): This technology embeds
WLPs in a printed circuit board.

CSR Management

R&D for Biosensor Technology

Terminal
Encapsulation
resin

Redistribution

CSR Highlights

With the advancement of digital products, semiconductors
need to be ever more compact and feature ever greater
performance. Casio is researching high-density packaging
technology to contribute to the realization of better
semiconductors.
Casio has been developing Wafer Level Package (WLP)
technology since 1997, and in 2001 Casio Micronics started
WLP mass production. In 2002, WLP was widely adopted in
the image signal processing devices for GPS cellular phones
with built-in cameras. Since 2003, WLP has spread to otherareas such as flash memory for digital cameras and soundgenerator LSIs for cellular phones.
In fiscal 2006, the Casio Micronics No. 2 Factory set up
300-mm wafer-size processing for WLP technology, andstarted mass production of the industry’s most advanced
semiconductors in 2006. Casio is also promoting thedevelopment of Embedded Wafer Level Package (EWLP)
technology*2, which is gaining attention as next-generation

Corporate Profile

Development of High-density Packaging
Technology (WLP Technology*1)

Casio and the Market

Kochi Prefecture
Development of Thin Film Nano Technology for
Next-Generation Information Devices

Kyoto City
Development of Fundamental Technology to Createa Key Location for Nano Medicine

Casio andCasio and Employees

Prototype of a second-generation wristwatch-type device

Casio and the Market the Global Environment

World’s first zinc-oxide TFT display

CSR Management

Kyoto City’s Collaboration of Regional Entities for the
Advancement of Technological Excellence project began in
January 2005 and is led by Kyoto University. It aims to develop fundamental technology to create a major site for nanomedicine. This five-year project will operate until December
2009.
There are four groups in this project working closely
together and sharing results. These groups are involved indevelopment of: (1) portable devices for blood analysis
focusing on several markers for tumors; (2) wristwatch-typedevices that perform painless blood collection and analysis
using a micro-needle; (3) nano materials that enable imaging
and targeting of tumor markers that are unique to cancer; and(4) imaging and targeting materials based on magnetic resonance imaging (MRI) technology that uses nano particles.
The goal of this research is to create new technology thatwill help build a future society where people can feel secureby knowing the current status of their health. Casio Computeris participating in the group for development of wristwatchtype devices, and is promoting the development of systems
devices for medical testing.

CSR Highlights

Casio has been participating in the above-named projectsince January 2003. At a results briefing exactly halfway
through the project period, it was announced that a working
prototype of a 60,000-pixel zinc-oxide TFT display had beencreated, and that the theory behind this technology had been
proven. The project has already shown that low-resistancezinc oxide offers the same properties as indium tin oxide(ITO) at 180µ Ω-cm, and the aim is now to improve upon thisperformance to less than 100µ Ω-cm. Based on these results,
it is expected that a high aperture-ratio, power-saving display
with a low-temperature, energy-saving manufacturing
process will be realized.
Field emission lamp (FEL) technology uses thin nanodiamond film as an electron source, and was originallydeveloped for display backlighting. The project has created asample of FEL for use in vehicle taillights, in a joint research
project with an automobile manufacturer. Subsequently, thistechnology has gained a lot of attention at various exhibitions,as well as through the official results announcements. FEL
has become a reality for a wide range of uses as a powersaving, mercury-free lighting technology.

Corporate Profile

Participation in Collaboration ofRegional Entities for the Advancementof Technological Excellence*

Kickoff meeting
March 23, 2006

Japanese-language Website of Kochi Prefecture’s
Collaboration of Regional Entities for the Advancement ofTechnological Excellence
http://www.kochi-create.com

Exhibit at the joint symposium
May 29, 2006

Japanese-language Website of Kyoto City’s Collaborationof Regional Entities for the Advancement of Technological
Excellence
http://www.astem.or.jp/kyotokesshu/index.html* Collaboration of Regional Entities for the Advancement of Technological Excellence (CREATE):
Projects conducted by various communities (prefectures or government-designated cities) in one of the eight priority research fields specified by theJapanese government—life sciences, information and telecommunications, environment, nano technology, materials, energy, manufacturing technology, and social foundation/frontiers. The projects draw upon the collective efforts of community research potential (R&D-oriented corporations,
universities, public testing and research organizations) to advance research and development in the community’s chosen field. The goal is to contributetoward the creation of new technology and new industries throughout Japan.

W30

Casio Corporate Report 2006

Company Data

Prototype of a Four-Color Field
Emission Lamp Using Thin Nanodiamond Film

Casio and Society

Second research results presentation
October 14, 2005
Panel Discussion: Creating New
Industries in Kochi PrefectureCasio and the Market

Intellectual Property Activities
Casio has various systems in place to properly manage theintellectual properties that it has amassed over the years. They
also ensure that research and development results will continue to be produced, resulting in new intellectual properties.

Policies and goals(1) Patent application and acquisition activities
The aim of these activities is to establish basic and de facto
patents based on the improvement of quality, while building
a patent network through patent application and acquisition
in important fields (selection and concentration).

(2) Utilizing intellectual property rights(3) Patent Advisory Engineer System
Intellectual Property Management Policies(4) Techno Power

W31(6) Intellectual Property Education System
Casio conducts various educational activities in order toraise the employee awareness of the importance of competitive intellectual property acquisition. The company
holds internal seminars to increase interest and understanding of intellectual property, discloses information on
the utilization of the Website (the contents of the intellectual property homepage), and utilizes outside educationalorganizations, such as the Japan Intellectual Property
Association and the Japan Institute of Invention andInnovation.

Casio Corporate Report 2006

Company Data

Creation of innovative new technologies and products has
been Casio’s approach to development since the beginning.
The competitiveness of a corporation is heavily influenced by
its ability to protect its innovations through patents. At thesame time, companies must patent their brands and designs,
in order to protect themselves from fakes and imitation
products.
The Intellectual Property Center is tasked with managing
Casio’s intellectual property worldwide. Its role is to ensure
the competitiveness of Casio’s business by making use of
secured patent rights, design rights, trademarks and otherrights. The center is also responsible for resolving disputes
and signing agreements with third parties, while broadly managing all intangible assets and intellectual property rights
such as copyrights and trade secrets.

Casio and Society

Role of the Intellectual Property CenterIn 1968, Casio created an Award Program to recognize
employees’ contribution through inventions and creative
work. By providing incentives to inventors and creators,
the program serves to motivate the company’s engineers
to tackle new technology. In addition, Casio recently
revised its intellectual property regulations in compliancewith Article 35 of the new Patent Law (Employee
Inventions), which came into effect in April 2005. In the
new regulations, the company added a discussion
process to allow inventors to express their opinions, alongwith a mechanism for inventors to dispute the amount of amonetary award. The regulations were again revised in
April 2006, to better meet the needs of inventors.

Casio and Employees(5) Invention Prize System

Casio andThe Techno Power awards were launched in 1992 toprovide incentive to technology developers while encouraging the sharing and accumulation of technology. They
provide engineers and designers with an opportunity topresent their work to top management, and awards are
given for outstanding achievements. By properly evaluating and rewarding intellectual property accomplishments,
the Techno Power awards encourage engineers to take on
new technological challenges with pride and motivation.

Casio and the Market the Global Environment

This system was initiated in 1994 for the ongoing creationof outstanding intellectual properties. Highly qualified
engineers with good technical knowledge and strong
leadership qualities are appointed as patent advisory
engineers and assigned to divisions. Their responsibility is
to strengthen the intellectual properties within their individual divisions by helping to create core inventions, explore
opportunities for new inventions, evaluate inventions, andavoid infringement of other companies’ patents.

1. Making Casio a company with strong technologies andintellectual property rights● Establishment and promotion of intellectual property
strategy based on business, technology, and product strategies● Global acquisition of strong intellectual property
rights based on competitive technologies● Creation of better awareness in order to strengthen
intellectual property
2. Utilizing intellectual property rights● Making the most of intellectual property using theoverall activities of the entire company● Promotion of licensing (cross licensing)● Elimination of Casio product imitations
3. Avoiding the risk of intellectual property infringement● Prevention of use of third-party intellectual property
rights by always placing importance on technological advancement● Thorough investigation of third-party intellectual
property rights
4. Developing human resources for intellectual property● Intellectual property education for employees of thecompany at all levels● Training of intellectual property specialists

CSR Management

Using intellectual property rights already obtained, Casio
provides licensing to other companies (including crosslicensing). At the same time, the company rigorously pursues and eliminates imitations of Casio products.

CSR Highlights

Casio is promoting a unified business strategy while linking
research and development with its management of intellectual property. The company aims to increase profitability andprotect its business through proper management of intellectual property. Casio views intellectual property as an important
indicator of corporate value. The company has set out the following four points as its policies and goals for effectively
promoting intellectual property management and properly
administering its results.

Corporate Profile

Management of Intellectual Property

Casio and the Market

Responsibilities
to Customers

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

Activities of Casio Customer Support
CenterBack-

Super High light
Resolution LCD

Customer Comments

Super High Resolution LCD
with backlight★ Make the text display easier to read!

Two pronunciation
formats★ Provide audio pronunciation
samples in other languages!
★ Make the dictionary expandable!

Native-speakerpronunciation

It talks!

Audio output
function in
six languages

The EX-VOICE Systemprovides clear audio

Contents Plus
Data
card

Text

Contents Plus allows you to
add the content you need

Prompt response

Reasonable fees that satisfy customers

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, and design, but also to ease of use andcustomer service. The results are then reflected in thecreation of future products.

W32

Casio works hard to reduce any unnecessary burden on
customers by controlling repair costs. This is done throughimprovement of repair methods and setting repair fees that
customers can accept. Repair method improvements are also
important because they help to reduce discarding of parts
during repair work. In fiscal 2006, Casio’s new and improved
system of digital camera repair operations—the first of its kindin Japan—was also implemented at overseas repair locations.

Casio Corporate Report 2006

Company Data

Casio is working to improve its repair technology in order tomaintain customer confidence and realize the kind of repair
quality that customers expect. In addition, Casio is striving to
improve product quality by sending feedback from the repair
sites to the Product Development HQ and the Manufacturing
Department.

Casio and Society

Dependable technology

Casio and Employees

Casio is taking steps to improve its operations by focusing onpart procurement, repair work, and repair technology, so as
to shorten the 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
overseas markets too, Casio is striving to shorten repair times
to match Japan levels. Moreover, Casio has repair locations
for system equipment across Japan, enabling prompt dispatch of repair technicians to client sites.

Casio andThe Service Department, which is responsible for productrepairs, strives to satisfy customers by providing service
based on the following three points: prompt response,
dependable technology, and reasonable fees that satisfy
customers.

Casio and the Market the Global Environment

Customer Service Improvement

CSR Management

Can be expanded
gradually

CSR Highlights

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. The Customer Support Center operates under the CS Control Group with thegoal of improving customer satisfaction (CS) across thedevelopment, manufacturing, sales, and service
departments. The center
strives to continually deliver
high-quality service tocustomers by conducting
regular skill checks on all
staff and ensuring theyobserve the following four
points when receiving callsfrom customers:
Customer Support Center● Prompt, accurate andpolite response● Acceptance of customer’s remarks with sincerity andaccurate understanding of the facts● Efforts to tie the viewpoint of customers to a solution● Reflecting customer opinions in product andservice improvements.
In this way, Casio is striving to ensure the satisfaction andhappiness of customers. The operating hours of the Customer
Support Center are also being steadily expanded to include
weekends and holidays, in an effort to offer more customer
convenience. Finally, the Customer Support Center also
operates an Overseas Customer Support Center. The
Overseas Customer Support Center cooperates with thecustomer support centers at Casio’s overseas sales
companies. The Overseas
Customer Support Center is Types of inquiries(Fiscal 2006)
carrying out various activities
to foster good relationships
Other 8.6%of trust with overseas users
Requests forof Casio products as well.
catalogues anduser manuals
In the future, Casio will
5.5%
continue to increase the levelof its high-quality customer
Post-purchaseservice, and use worldwide
inquiries
Pre-purchase71.2%
inquiries
customer opinions to further
14.7%
improve its business.

Easy to seefrom every angle
Corporate Profile● Example of an Electronic
Dictionary that Reflects
Customer Opinions

Casio and the Market

Quality Concept

Quality at Casio
Functions,performance,
design, priceEnvironmental
conservation,
recycling

Casio
quality

Serviceability

Reliability,
durability

Safety, legal
compliance

CSR Management

Quality Management Policies

Quality Assurance System● To build a good corporate image, we offer products andCompany Data

Casio Corporate Report 2006

Casio and Society

This gathering provided
important material for future
product development. It
was also a fantastic, special
opportunity for the membersof Casio’s development
team to meet and talk withteachers in person.

Teachers Meeting

W33

Casio and Employees

Teachers Meeting (Product Feedback from Educators)
On December 19 and 20, 2005, Casio invited 11 mathematics teachers
from Australia, the United States, South Africa, Iran, Turkey, South Korea,
Malaysia, Singapore, and the Philippines to the Teachers Meeting at the
Hamura Research and Development Center. The event was held in orderto get product feedback from overseas educators.
The main purpose of the meeting was to hear opinions on thefunctions of Casio’s current scientific calculator models. The teachers
submitted product evaluation reports to Casio in advance outlining over
100 points for improvement. During the discussion, Casio responded tothese suggestions, and there was a lively exchange of opinions among
the teachers.

Casio and

To offer goods and services that please and impress
customers, it is necessary to create products that can win
their solid approval in all areas. In addition to function, design
and price, these areas include reliability, durability, serviceability, environmental soundness, and compliance with
relevant laws and regulations.
For Casio, all of these factors that affect the evaluation of
its products are elements of quality. Group-wide efforts havebeen made to improve quality, based on Casio’s Quality
Concept and Quality Management Policies. In 1996, Casio

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 the Electronics business segment (consumer, timepiece and systemequipment 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 reflectedin specific quality assurance activities within the departments.
In 2004, the CS Control Group was created within theSales Department of the Electronics Equipment business toimprove consumer services. Since then, the CS Control
Group has been conducting activities to ensure quality inproduct development in cooperation with the Engineering
Department (within the Product Development HQ) in an effort
to further improve quality and services.
Moreover, persons responsible for quality assurance havebeen appointed in the development departments to look after
product specifications, software, mounting, outer packaging,circuits, devices, and manufacturing, respectively, in eachbusinesses. In addition, the quality managers who oversee
the entire operations ensure product quality in each business.

Casio and the Market the Global Environment

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

CSR Highlights

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

started its “Delight Our
Customers” program toensure that all
employees of thegroup would become
thoroughly familiar with
Casio’s philosophy
concerning products
and services.
The program is
continuing to raise
employee awareness.

Corporate Profile

Casio’s Commitment to Quality

Casio and the Market

Partial List of ISO 9001 Certified Sites

Domestic Production
Sites / Services

Initial Version
Registration Date
June 25, 1999

Kofu Casio(including Ichinomiya Factory)

August 1, 1994

Casio Electronic Manufacturing

August 5, 1994

Yamagata Casio

December 16, 1994

Kochi Casio

January 12, 1996

Casio Micronics

March 29, 1996

Casio Techno

May 21, 2004

Casio Korea

September 15, 1994

Casio Computer (Hong Kong)(including Jin Shui Keng Casio Electronics Factory)

July 29, 1998

Casio (Thailand)

October 24, 2000

Guandu Bohsei Electronics Limited

March 22, 2002

(Wengyuan County)

Status of Quality Assurance Activities

New product shipment Start Approval System

Quality Information Assistance System
Casio uses reliable data to quantitatively analyze market andproduction conditions, and furnishes the results to its quality
professionals. The company also has a quality assurance
W34

In order to improve new products, customer comments
were gathered and analyzed, and points for improvement
were provided as feedback to the development anddesign departments. The resulting cases of productimprovements were then publicized within the company,
allowing Casio products to compete in the effort toimprove customer satisfaction.

(2) Implementation of Post-sale Accident Prevention
Measures
Along with the reexamination and revision of internal
design policies and standards based on the lessons
learned from product-related accidents reported in newspapers and on television, Casio made unified efforts toraise awareness towards the elimination of such accidents. Casio also actively disclosed information on design
and manufacturing defects that posed the risk of causing
an accident. The company thus reconfirmed that customer
safety is its highest priority.

(3) Activities to Reduce Monetary Losses Due to
Quality Issues
Casio addressed quality issues for each item in order toreduce quality-related losses, which serve as an indicatorfor quality improvement. The company made effective
efforts to prevent problems from occurring or reoccurring,and losses were reduced compared to the previous year.
Casio Corporate Report 2006

Company Data

In the event that an accident, complaint or quality problem
occurs after a product sale, an information channel is established according to the type and level of the problem. Thismechanism ensures that the necessary information is communicated promptly to the departments and supervisors who
can quickly determine the appropriate actions. In addition,
Casio has Web-based mechanisms that enable responsible
persons and other involved individuals to check on the statusof problem resolution online, to discuss and decide countermeasures including notification, and to clearly report andannounce measures to prevent recurrence of the problem.
Casio is able to respond promptly and accurately to any
problem that may occur.

(1) Promotion of Efforts to Improve Customer
Satisfaction Levels

Casio and Society

Post-sale Problem Response System

Accomplishments relating to priority tasks in Casio’s quality
assurance activities in fiscal 2006 were as follows.

Casio and Employees

Before starting shipment of a new product, the quality assurance persons responsible for planning, design, evaluationand production, with their quality control supervisor, reconfirm
each process involved. This is followed by objective verifications by the senior general manager of the ProductDevelopment Headquarters, and the general manager of theEngineering Department. Only then is a decision made toship the new product.

Casio andCasio Computer Co., Ltd.
System Product Unit

Casio and the Market the Global Environment

Overseas
Production Sites

Certified and Registered Site

Casio makes every effort to ensure product safety so that
customers can always use Casio products with peaceof mind.
Casio’s product specifications include explicit safety
specifications. In addition, a Product Safety Responsibility
System has been implemented to evaluate product safety inevery process and for every product to ensure that all Casio
products are safe.
Casio has established permanent sub-committees toensure safety under the Casio Promotion Committee forGroup-Wide Quality Enhancement. These sub-committees
guarantee compliance with electrical safety standards andelectromagnetic compatibility (EMC) standards. Dedicatedstaff on these sub-committees provide technical guidance
and operational support for the entire group.
Extraordinary committee meetings are also held as necessary to establish rules and exchange information. These andother activities ensure that Casio complies with safety laws
and regulations.

CSR Management

Product Development HQClassification

Efforts to Ensure Product Safety
CSR Highlights

Casio has constructed a quality assurance system based on
the ISO 9001 quality management system. Casio strives toimprove quality by applying the PDCA (plan, do, check, act)
approach to all stages in the process chain, from productplanning, to design, evaluation, purchasing, production, sales
and service.

Corporate Profile

Website on its Intranet, ensuring that all employees are thoroughly informed of laws and regulations, as well as Casio’s
internal standards and rules. Casio provides solid support for
quality assurance.

Quality Management System

Casio and the Market

Building Strong Partnerships

Responsibilities
Casio is building strong partnerships with suppliers in and outside Japan that shareto Suppliers
Casio’s procurement policies.

Fulfilling Social Responsibilities
Together with Suppliers

Procurement Policies

Social Responsibility Guidelines

1. Fair and equitable transactions
Casio carries out fair and equitable transactions byproviding equal opportunities to all suppliers (andcandidates) in and outside Japan in accordance with its
internally established procedures.

11. Compliance with laws and social norms

CSR Management

Guidelines covering the following areas have been
established in order to fulfill social responsibilities
through procurement.

CSR Highlights

Casio has set forth the Social Responsibility Guidelines,
including compliance with laws and social norms, andenvironmental protection, in order to fulfill its social
responsibilities together with its suppliers throughprocurement activities.

Casio aims to fulfill its social responsibilities, including
compliance with relevant laws and social norms, andprotection of the environment, through fair and equitabletransactions throughout the supply chain by strengthening
partnerships with suppliers.

Corporate Profile

Basic Thoughts behind the Approachto Procurement Policies

12. Environmental protection

Casio’s procurement activities comply with all relevantlaws, social norms, standards, and treaties worldwide,
including the protection of human rights, prohibition ofchild labor, forced labor and discrimination. Therefore,
Casio also requires its suppliers to observe the same legal
and social requirements.

13. Proper information security
14. Respect for intellectual property
15. Sound and stable corporate management
16. Superior technological development abilities

3. Environmental protection

17. Right price and quality
18. Stable supply
19. Electronic transaction systems

Casio builds relationships of trust with its suppliers throughreciprocal efforts, such as merging and complementing of
mutual technological development abilities, supply chain
cooperation, compliance with laws and social norms, andprotection of the global environment, which will benefit
both parties.

6. Right price and quality
Casio endeavors to secure right price and quality in orderto provide its customers with a stable supply of optimal
products, to ensure that Casio gains the full confidence ofcustomers around the world.

Managing the Guidelines
Company Data

Casio initiates and continues transactions with suppliers
based on comprehensive evaluation criteria, which include
compliance with laws and social norms, environmental
protection, proper information security, respect for intellectual property, sound and stable corporate management,
superior technological development ability, right price andquality, stable supply capabilities, and electronic transaction systems.

Sharing the Guidelines
By holding of Procurement Policy Presentation Meetings andindividual consultations, Casio is conveying its policies tosuppliers in and outside Japan. The Guidelines have beenposted on Casio’s Website and also distributed in printed
form to the people concerned.

Casio works together with
suppliers to resolve such
issues as may be identified in the regular surveys,
which are conducted bymeans of answering prescribed questionnaires.

Procurement Policy Presentation Meeting

Reporting on the Guidelines

7. Prohibition of personal-interest relationships

Casio releases regular reports on its fulfillment of the Social
Responsibility Guidelines.

Casio does not allow any employee to have personalinterest relationships with suppliers.

W35

Casio and Society

5. Policies on supplier selection and transaction
continuation

10. Prohibition of personal-interest relationship

Casio and Employees

4. Strengthening partnerships with suppliers

Casio andCasio helps to protect the global environment throughenvironmentally friendly procurement, which is based on
the Casio Environment Charter and Fundamental
Environmental Policies, in cooperation with suppliers.

Casio and the Market the Global Environment

2. Compliance with laws and social norms

Casio Corporate Report 2006

Casio and the Market

Responsibilities
to Shareholders
and Investors

Optimum Shareholder Return andInformation Disclosure
Casio is striving to improve business performance and strengthen its financial
position in order to increase returns to shareholders.

Communication with Shareholders
and Investors

Financial results briefing

Casio and Employees

Inclusion in SRI Index and Funds

Casio Annual Report

Investor Relations Website

IR Website http://world.casio.com/ir/

Along with fuller information disclosure on its Website, Casio
is actively providing more information to individual investors.
These efforts include not just improvement of general shareholder meeting content, but also holding management
presentations for shareholders after the meeting.

(as of June 1, 2006)

SRI Index Inclusion● Morningstar SRI Index(May 1, 2006)

SRI Fund Inclusion

Inquiries to the IR Department● STB Asset Management Co. Ltd.
● STB SRI Japan Open “Good Company”

In cooperation with the General Affairs Department, the IR
Department coordinates Casio’s investor relation activities,
and responds to all manner of inquiries from Japanese andoverseas shareholders and investors.

● Sumitomo Mitsui Asset Management Co. Ltd.
● Eco-Balance “Umi to Sora” (Sea and Sky)

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Casio Corporate Report 2006

Company Data

Communication with Individual Investors

Casio in SRI Index and Funds

Casio and Society

Socially responsible investment (SRI) represents a commitment to evaluate and select corporations for investment on
the basis of their performance on the triple bottom line. In
addition to conventional investment criteria such as financial
analysis, companies are also evaluated based on their CSR
performance including legal compliance, employment andhuman rights issues, social contribution, and environmental
protection. SRI funds have been gaining popularity in recent
years, and Casio is included in the following index and funds.

Casio andA wide array of IR tools
IR tools used by Casio include quarterly financial results,
annual reports, and business reports. The same information is
also provided on the Casio Website.

Casio and the Market the Global Environment

In fiscal 2006, Casio moved forward aggressively with expansion of its strategic businesses, including timepieces, digital
cameras, electronic dictionaries, cellular phones and TFT
LCDs. At the same time, the company strove to improve
management efficiency by raising the profit margin andimproving capital efficiency. As a result, record-high net sales
and net income figures were achieved for the third consecutive year: ¥580.3 billion and ¥23.7 billion, respectively (on aconsolidated basis). Dividends were raised by ¥3 per sharefrom ¥17 in the previous fiscal year to ¥20, marking the third
consecutive year of growing dividends.

IR events
After the release of financial results each quarter, Casio holds
financial results briefings. As the main speaker at these
events, the company president or director in charge of IR
explains the financial results and future outlook to institutional
investors and securities analysts. On occasion, the company
also meets individually withJapanese or overseas institutional investors and securities
analysts. Factory tours andsmall meetings for specificbusiness segments areprovided as well.

CSR Management

Operating Results and Dividends in
Fiscal 2006

Casio is actively engaged in a variety of investor-relations
initiatives, true to the company’s policy of disclosing corporate information appropriately and in a timely fashion, as
outlined in the Casio Code of Conduct.

CSR Highlights

Casio considers maintenance and expansion of profit distribution to shareholders to be an important management goal.
Accordingly, it is striving to improve its business performanceand strengthen its financial position. Casio distributes returns
to shareholders by comprehensively considering the company’s profit level, financial situation and dividend payout ratio,
based on a policy of maintaining stable dividends. Internal
reserves are also being appropriated for the R&D and investment necessary for stable corporate growth. These steps
allow Casio to improve its business results and strengthen its
management structure.

Corporate Profile

Basic Policies on Profit Distribution
to Shareholders

Casio and the Global Environment

Environmental Management Vision
Environmental Management Activities in Fiscal 2006 and Future Efforts

Corporate Profile

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

Company Data

Casio Corporate Report 2006

Casio and Society* See page 32 for explanation of terms.

Casio and Employees

W37

Future product initiatives
Now that we are compliant with the WEEE and RoHS
Directives in Europe, we will steadily take steps to respond to
the phase-outs of hazardous substances that are expected tobe legislated in North America, China, Japan, and South
Korea. We will also monitor legal and regulatory trends, suchas the EuP Directive* and REACH Regulation* in Europe, andpursue product compliance.
Future business site initiatives
Starting this fiscal year, we established new action plans forenergy conservation, resource-saving (i.e. the reduction ofwater consumption at production sites), and waste
reduction at business sites outside Japan. This is a major
step in the worldwide expansion of our environmental
conservation programs.
In Japan, we introduced a new action plan at electronic
component business sites to combat global warming by
reducing emissions of greenhouse gases other than CO2,
targeting a reduction of total emissions in 2010 to at or below
the 2000 emissions level. Through this and other steps, we
are working to realize the reduction targets set under the
Kyoto Protocol. We are also planning to use other new
measures, such as CDM, emissions trading, and other Kyoto
mechanisms, toward the fulfillment of our new target of a 20%
reduction in actual CO2 emissions by fiscal 2011.
Pursuing CSR management
Casio is making CSR a core driver of its management
practices. In one new initiative, we are recasting our ecoproduct designs as CSR designs by taking universal designconcepts into account and rethinking our green procurementof materials as CSR procurement by verifying the status of ourbusiness partners’ fulfillment of CSR. We are preparing therelevant guidelines and manuals and are moving ahead
quickly to implement these new practices.
See the following pages for details.

Casio andthe Global Environment

Product-related activities and results
Our product initiatives in fiscal 2006 included adding 114 newmodels to the Casio Green Products lineup; the Casio Green
Products (C.G.P.) 70 Activity raised the percentage of green
products in total sales to 68%. We will continue to work at
eco-product design with a view to achieving our target during
fiscal 2007, one year ahead of schedule.
In addition, we reduced by 22.6% the total packaging
materials used per unit of sales by optimizing our packaging
capacity.
We also pursued the target of completely phasing out
specified hazardous substances by the end of 2005 in
response to the European RoHS Directive, and completed thecompliance requirements with the cooperation of relevant
departments and business partners.
Business site-related activities and results
Our business site initiatives included energy conservation
efforts. The target we pursued was to reduce CO2 emissions
per unit of actual production* by 10% in fiscal 2006 compared to the fiscal 2004 level. However, CO2 emissions
increased 5% due to a unit price decline in our TFTLCD business.
Our waste reduction targets were to achieve zero
emissions and to reduce the generation of waste per unit ofproduction by 30% from the fiscal 2001 level. Casio Micronics
Co., Ltd., (Ome) and Casio Soft Co., Ltd., achieved zero
emissions status, bringing the number of sites to do so up to
13. The generation of waste per unit of production remained
equal to the fiscal 2001 level.

Future initiatives

Casio and the Market

Activities and results

Our hazardous substance phase-out target was todetoxify PCB-containing equipment currently in storage by
the end of fiscal 2006. We completed the application forcontracting the treatment of PCBs stored at the Hachioji R&D
Center and the Hamura R&D Center. PCBs stored at Kofu
Casio are waiting for the treatment facility in Hokkaido to start
receiving deliveries.

CSR Management

Casio approaches its environmental management activities
as a top priority issue for the realization of its corporate creed,“Creativity and Contribution.” In January 1993, we established
the Casio Environment Charter and Casio Fundamental
Environmental Policies to serve as a framework for executing
our environmental management activities. We then established the Casio Voluntary Plan for the Environment, anenvironmental management guideline that spells out how wewill conduct specific activities. In February 2006, we updated
the plan for the 10th time.
Within this plan, we have established an Environmental
Action Plan (EAP), the “Clean & Green 21” Initiative, whichclearly sets specific numerical targets and deadlines for
execution. The EAP covers the entire group, and serves as
our medium-term action plan. The company is moving forward toward the achievement of its goals. In February 2006,
we updated the EAP for the 9th time.

CSR Highlights

Yukio Kashio

Casio and the Global Environment

Casio Environment Charter and Casio
Fundamental Environmental Policies
Consistent with its corporate creed of “Creativity and Contribution,” Casio sets specific guidelines andtargets in line with the Casio Environment Charter and Casio Fundamental Environmental Policies inorder to ensure proactive execution of environmental management.
Corporate Profile

Corporate Creed
Creativity and Contribution

Casio Environment Charter
CSR Highlights

To conserve the global environment, Casio recognizes the importance of its corporate
environmental responsibility across the operations of its entire group. Casio establishes
basic policies and specific measures for contributing to world prosperity and humanhappiness from the broad perspective of international society, and endeavors to
implement them.

CSR Management

Fundamental Environmental Policies

Casio and the Market

1. Casio Group members shall comply with all environmental laws, agreements, andstandards in Japan and overseas.
2. The Group shall establish voluntary “Casio Environmental Conservation Rules”* basedon consideration for the environment at all product stages of development, design,
manufacture, distribution, repair services, and recovery/disposal. All Casio businessdivisions shall assume responsibility for their implementation, additionally auditing thedegree of compliance and making continual improvements.
3. From the standpoint of corporate social responsibility, and as good corporate citizens,
all Casio Group members shall apprehend the importance of global environmental
conservation and try to heighten their awareness.
4. These policies shall apply to all Casio Group business divisions in Japan and overseas.

Casio andthe Global Environment*The Casio Environmental Conservation Rules are specific action programs forenvironmental conservation, set forth in the “Casio Voluntary Plan for
the Environment (CVPE).”

Casio and Employees

Casio Environmental
Conservation Committee
PDCA
PDCA ateach site

Environmental Action Plan,“Clean & Green 21” Initiative(PLAN)

Casio and Society

Casio Voluntary Plan for the Environment(Casio Environmental Conservation Rules)(PLAN)

Company Data

Improve and strengthen
environmental activities(ACT)

Globalconservation

Environmental activities of
implementing organizations(DO)

Environmental performanceassessment(CHECK)

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Casio Corporate Report 2006

Casio and the Global Environment

Environmental Action Plan, “Clean & Green 21”
Initiative
Fiscal 2006 Performance and Future Targets
Casio establishes targets that take account of environmental changes in and outside Japan andcontinually strives to achieve these goals.

Item

Rate of achievement

Green product sales grewto 68%.

✩✩

Continuing

32

Reduce the total usageof packaging materials
per unit of sales by 30%
by FY2008 comparedto FY2001.

A 22.6% reduction wasachieved.

✩

Continuing

55 of
Web
versionDiscontinue the use of
RoHS Directive-specified
toxic substances,namely, lead (leadcontained in purchased
products), cadmium,mercury, and hexavalentchromium, by the endof FY2006.

Discontinued the use oflead, cadmium, mercury,and hexavalent chromiumin products bound forEurope. (PBB and PBDE
were already phased out.)

Page number

Discontinue the use of lead, cadmium, mercury, and hexavalentchromium by June 2006 in compliance with hazardous substanceregulations other than those for
products bound for Europe.

✩✩✩*Hazardous substances regulations
outside Europe: Hazardous substanceregulations equivalent to Europe’s RoHS
Directive in North America, China, Japan,
and other locations.

52 of
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versionCasio and the Market

Future initiatives

FY2007 targets

Share of green products in total sales

Casio set and worked toward the goal of raisingsales of green products to 70% of total sales by
fiscal 2008 (C.G.P. 70) in order to spur
aggressive development and evaluation of ecoproducts. In fiscal 2006, green product sales roseto 68% of total sales. Casio will continue todevelop eco-products that satisfy Casio’s Green
Product Certification Criteria, with a view towardachieving the goal set for fiscal 2008 one year
ahead of schedule.

70

68.0
59.0

60
50

Casio andthe Global Environment

Share of green products
in total sales (%)

80
70

44.4
35.3

40
30
20
10

1
FY2002

FY2003

FY2004

FY2005

FY2006

FY2007

FY2008targetExplanation of terms■ C.G.P. 70 Activity

Abbreviation of “Casio Green Products 70.” An effort to raise the percentage of green products (products that meet Casio’s Green ProductA proposed directive on environmentally friendly design of energy-using products in the European Union (EU).

■ PBB

Polybrominated biphenyl. One of the substances prohibited under the RoHS Directive.

■ PBDE

Polybrominated diphenyl ether. One of the substances prohibited under the RoHS Directive.
Pollutant Release and Transfer Register system.
The system was institutionalized in Japan in 1999 with the Law concerning Reporting, etc. of Releases to the Environment of SpecificCasio and Society

Certification Criteria) in total sales to 70%■ EuP Directive■ PRTR

Casio and Employees

0

CSR Management

Hazardous
substance
phase-out targets

FY2006 performance

CSR Highlights

Development
targets for ecoproducts

FY2006 targets
Raise green productsales to 70% of total
sales by FY2008.

Corporate Profile* Rate of achievement: Ratio of fiscal 2006 performance against the target fiscal year.
✩✩✩:100% of target achieved. ✩✩:80% or higher achieved. ✩:Below 80% achieved.

Product-related targets

Chemical Substances and Promoting Improvements in Their Management (PRTR Law).
■ REACH Regulation

A new EU regulation for chemical substances that controls the Registration, Evaluation and Authorization of CHemicals under a single,
Restriction of the use of certain Hazardous Substances in Electrical and Electronic Equipment.
A regulation that came into effect in the EU on July 1, 2006, prohibiting the use of six specified hazardous substances in electrical andelectronic equipment.

■ WEEE Directive

A directive that came into effect in the EU on August 13, 2005, mandating the recycling of Waste Electrical and Electronic Equipment.

■ Unit of sales

A basic unit of measure calculated by dividing a figure by Casio’s consolidated sales.

■ Unit of production

A basic unit of measure calculated by dividing a figure by total production at specified production sites.
■ Unit of actual production A basic unit of measure calculated by dividing a figure by production, where the value for production in the denominator (i.e. nominal
production) is replaced with the value for actual production as corrected using the Bank of Japan’s Domestic Corporate Goods Price Index(electrical equipment).

Nominal production
Actual production =Bank of Japan’s Domestic Corporate
Goods Price Index (electrical equipment)

The following table shows the yearly ratios in comparison with the base year of fiscal 1991 for the Bank ofJapan’s Domestic Corporate Goods Price Index (electrical equipment).

Fiscal year
Price index corrected values

1991

2001

2002

2003

2004

2005

2006

1

0.69

0.62

0.58

0.54

0.52

0.50

(Decimals are rounded to the nearest hundredth.)

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Casio Corporate Report 2006

Company Data

unified system.
■ RoHS Directive

Casio and the Global Environment

Business-site related targets
Item

Energyconservation
targets––––

Sites outside Japan: Reduce CO2
emissions per unit of production by
10% by FY2011 compared to FY2005.

––

––

––

Reduce total emissions of greenhousegases other than CO2 (CO2 equivalent)by 2010 to at or below the 2000
level.*6

Reduce water usage per unitof production at production
sites in Japan*1 by 5% by
FY2006 compared to
FY2001.

Water usage increased by about
34% over the FY2001 level due togreater water usage accompanying
increased production at Casio
Micronics.*5✩

Production sites in Japan*1: Reducewater usage per unit of actual
production by 10% by FY2009
compared to FY2001.

––

––

––

Production sites outside Japan*2:
Reduce water usage per unit ofproduction by 5% by FY2009
compared to FY2005.

––

––

––

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

Achieve zero emissions*3 attargeted sites in Japan by
FY2006.

Casio Micronics (Ome) and Casio
Soft newly achieved zero emissions
status, bringing the total number ofsites to do so to 13.*7✩✩

Removed from FY2007 targets.

Reduce the generation ofwaste per unit of production
by 30% by FY2006
compared to FY2001.

The generation of waste remained
equal to the FY2001 level despite
increased production.

✩

Production sites in Japan*1: Reduce
the generation of waste per unit ofactual production by 40% by FY2009
compared to FY2001.

––

Production sites outside Japan*2:
Reduce the generation of waste perunit of production by 10% by FY2009
compared to FY2005.

✩

Detoxify PCB-containing equipment
currently in storage as the Japan
Environmental Safety Corporation
opens facilities in different areas.
● By FY2008 all PCBs stored at the
Hamura R&D Center and theHachioji R&D Center.
● By FY2008 PCBs stored at Kofu
Casio.

––

Achieved a 100% response rate.

✩✩✩

Achieve a 100% response rate
(percent of parts covered by suppliersurveys) for green parts at sites inJapan in FY2007.

Achieve a 100% response
rate (percent of parts
covered by supplier surveys)
for green parts at sites
outside Japan in FY2006.

Achieved a 99.2% response rate.

✩✩

Achieve a 100% response rate
(percent of parts covered by suppliersurveys) for green parts at sites
outside Japan in FY2007.

Achieved 58.7%.

✩✩

Continuing

Reduce CO2 emissions per unitof sales by 50% by the end of
FY2008 compared to FY2001
by improving the efficiency of
distribution in Japan.

Achieved a 40% reduction.

✩✩

Continuing

Reduce CO2 emissions perunit of sales by 5% by
FY2008 compared to FY2005
by improving the efficiency of
distribution outside Japan.

Achieved a 3% reduction.

Raise the green purchasing
ratio to 60% of total purchasesof stationery products, officesupplies, and OA equipment atsites in Japan by the end of
FY2008 (based on the numberof purchases).

––

53 of
Web
version52 ofWebversion45 ofWebversionCasio and Society

Achieve a 100% response
rate (percent of parts
covered by supplier surveys)
for green parts at sites inJapan in FY2006.

51 of
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versionCasio and Employees

Detoxify PCB-containing
equipment currently instorage by the end of
FY2006.

Reservations have been made witha waste treatment contractor for thetreatment of PCBs stored at the
Hamura R&D Center and theHachioji R&D Center. The PCBs arestill on the waiting list for treatment.
The PCBs stored at Kofu Casio areawaiting the opening of a treatment
facility in Hokkaido in October 2007.

20, 50 ofWebversionCasio andthe Global Environment

Green purchasing
implementation
targets

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

Page number

Casio and the Market

Greenprocurement
implementation
targets✩––––

Hazardous
substance phaseout targets

FY2007 targets

CSR Management

Waste reduction
targets

CO2 emissions rose 5% due toincreased production and a unit
price decline in TFT-LCDs

Rate of achievement

CSR Highlights

Resource-saving
targets

FY2006 performance

Corporate Profile

Reduction targets forgreenhouse gases
other than CO2

FY2006 targets
Reduce CO2 emissions perunit of actual production by
10% by FY2006 and by 20%
by FY2011 compared to
FY2004.

* Rate of achievement: Ratio of fiscal 2006 performance against the target fiscal year.
✩✩✩:100% of target achieved. ✩✩:80% or higher achieved. ✩:Below 80% achieved.

*At sites that have adopted the*CATS e-P system.*4

54 of
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version✩Continuing*1: Production sites in Japan: Kofu Casio (head office and Ichinomiya branch), Kochi Casio, Casio Micronics (in Ome and Yamanashi), Casio Electronic Manufacturing, and Yamagata Casio.
*2: Production sites outside Japan: Casio Korea Co., Ltd., Casio Taiwan Co., Ltd., Casio Computer (Hong Kong) Ltd., Casio Electronic Technology (Zhongshan) Co., Ltd., Casio Electronics (Shenzhen) Co.,
Ltd., Pt. Asahi Electronics Indonesia, and Casio (Thailand) Co., Ltd.
*3: Zero emissions: (Final disposal / Waste generated) x 100 <= 1%.
*4: Sites that have adopted the CATS e-P system: Head Office of Casio Computer Co., Ltd., Hamura R&D Center, Hachioji R&D Center, East Nihon Hub Centers (Chiyoda, Sendai, Saitama, Yokohama,
Chiba, and Special Sales Office), West Nihon Hub Centers (Nagoya, Osaka, Hiroshima, and Kyoto), and Casio Hitachi Mobile Communications.
*5: In terms of units of actual production, water usage decreased 2.7% from the fiscal 2001 level.
*6: Greenhouse gases other than CO2: PFCs, SF6, and NF3 (based on JEITA’s voluntary action guidelines). Casio has already completed the complete elimination of these gases other than SF6.
*7: The three sites that had not achieved zero emissions status by the end of fiscal 2006 will continue to pursue this goal as part of their ISO 14001 initiatives.

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Casio Corporate Report 2006

Company Data

Targets against
distributionrelated global
warmingCasio and the Global Environment

Environmental Management System
The Casio Environmental Conservation Committee System and ISO14001
are at the core of Casio’s work to conserve the global environment.

Promotion Office (Plan)

Casio Environmental Conference (Act)Specialized committees (Plan)

Environmental Audit Organization (Check)■ Specialized committees are made up of dedicated committee members who oversee strategic topics that should beManagement System of the Casio Environmental Conservation Committee
Casio Environmental Conference
Promotion OfficeEnvironmental Audit Organization

Specialized
Committee Chairmen

General Manager,
Product Development
HQ Divisions

Casio sites general
responsible person

Responsible person
for R&D and staff functions

Responsible person
for sales

Presidents of major
consolidated companies

Special Committee on Packaging

Implementation
organizations● Product Development HQ

Implementation
organizations● Headquarters at Hatsudai● Hachioji R&D Center● Hamura R&D Center

Implementation
organizations● R&D, and staff function
departments

Implementation
organizations● Sales departments● Branches● Sales offices● Consolidated domestic
sales companies● Consolidated overseas
sales companies

Implementation
organizations● Consolidated domestic
manufacturing
companies● Consolidated overseas
manufacturing
companies

Green Procurement Committee

Consumer
Timepiece
Visual● System●●Green Product Development
Conference
Environmental Accounting
Committee●● Casio Hitachi

Mobile Communications●Electronic Components

Green Purchase Committee(division)

W41

Casio Corporate Report 2006

Company Data

Committee Chairman:
Yukio Kashio, Executive Vice President

Casio and Society■ Consists of internal auditors of the Promotion Office andthose of the implementation organizations. Conducts environmental performance research in the implementation
organizations and environmental self-audits in manufacturing sites to improve Casio’s group-wide environmental
management.

Casio and Employees■ Makes decisions on the direction of Casio’s environmental
policies, and establishes action plans and targets.
■ Examines the environmental policies of the implementationand specialized committees and reports on the performance of their activities.
■ Exchanges information about environmental trends andamong implementation organizations.

■ Promote environmental improvement activities in response
to decisions made by the Casio Environmental Conference.
■ Establish an environmental management system constructed for all implementation organizations.
■ Clearly establish the structure and responsibilities for the
implementation of the environmental management system,
define objectives and targets, control the operation of thesystem, conduct self-audits, and take remedial action.

Casio andthe Global Environment■ Committee that oversees the continuous improvement of
Casio’s environmental conservation through the “Plan, Do,
Check, Act” cycle.

Casio and the Market

Implementation organizations (Do)
Casio Environmental Conservation Committee

CSR Management■ Plans the direction of Casio’s environmental policies and its
action targets and plans.
■ Controls the implementation of the Casio Voluntary Plan for
the Environment and revises the environmental management guidelines.
■ Ascertains environmental trends in and outside Japan andforwards information to the implementation organizations,etc.
■ Manages the Casio Environmental Conservation
Committee and the theme-based specialized committees.

CSR Highlights

Casio’s environmental efforts are led by the Casio
Environmental Conservation Committee, which is chaired by
the vice president and consists of five specialized committees and five implementation organizations. The committee
oversees the environmental activities of Casio Computer Co.,
Ltd., and its group companies. Under this system, Casio pursues responsible environmental management by working
constantly to improve all of its environmental conservation initiatives through the “Plan, Do, Check, Act” cycle. All of these
efforts are guided by the Casio Voluntary Plan for theEnvironment and Casio’s Environmental Action Plan.
Specifically, the Promotion Office and five specializedcommittees are responsible for the “Plan” part of the cycle,
the five implementation organizations handle the “Do” part,the Environmental Audit Organization and the Promotion
Office performs the “Check,” and the Casio Environmental
Conference takes responsibility for the “Act” part in the organization that is shown in the diagram below.

tackled not by implementation groups alone but jointly bygroup companies and divisions. Each committee chairman
is appointed by the chairman of the Casio Environmental
Conservation Committee.
■ Each specialized committee is made up of implementation
members who are appointed by the specialized committee
chairman and implementation committee chairman. The
Promotion Office manages these committees.

Corporate Profile

Casio’s Environmental Conservation
SystemCasio and the Global Environment

As for the status of compliance with environmental laws andregulations, Casio had no violations of laws or regulations,penalties, fines, complaints, or lawsuits in the past five years.

Apology and correction:
Last year, Casio’s CSR Report 2005 reported that certified business sites represented 78.2% of all employees. The correct figure
was 83.1%.

Date of certification
November 1997
January 1998
March 1998
September 1999
January 2000
March 2000
October 2000
October 2000
December 2000
December 2001
May 2002

Site name
Casio Korea Co., Ltd.
Jiu Shui Keng Casio
Electronics Factory
Casio Computer(Hong Kong) Ltd.
Casio Electronics(Zhuhai) Co., Ltd.
Pt. Asahi Electronics
Indonesia
Casio (Thailand)Co., Ltd.
Casio Taiwan Ltd.
Casio Electronics(Shenzhen) Co., Ltd.
Casio Electronics(Zhongshan) Co., Ltd.

Date of certification
April 1998
September 1999

FY2002

FY2003

FY2004

FY2005

0

0

0

0

0

0

0

0

0

0

In October 2005, Kofu Casio’s headquarters implemented
an emergency earthquake response drill for all employees aspart of its environmental risk management program. In November
2005 and March 2006, the company also implemented response
drills that supposed the leakage oflarge quantities of heavy oil andEmergency drill supposing theoccurrence of an earthquake
isopropyl alcohol (IPA).

December 1999
September 2000
February 2001
September 2001

Key Person

A Word from a Leader in
Promoting ISO14001

December 2001
February 2002
April 2002

June 2004

Environmental Education and Awards

Casio Corporate Report 2006

Company Data

W42

Casio and Society

Casio promotes environmental education and awareness-raising activities so that every employee can be mindful of theenvironment on a daily basis.
New employees are first given general education about
the environment before they are assigned to their posts. In
addition, general employees, managers, and those who areresponsible for the environment are provided with generaland specialized education once a year depending on their
responsibilities and job ranks. By taking these steps, Casio
endeavors to raise employees’ awareness and their level ofknowledge about the environment.
In addition, as an award system, Casio runs a program ofsuggestions for improvement at each site, and gives awards
twice a year to individuals or groups who submit excellent
suggestions. Six sites (Kofu Casio, Casio Micronics,
Yamagata Casio, Kochi Casio, Casio Hitachi Mobile
Communications, and Casio Techno) also have their own
award systems. Furthermore, Casio has various other award
programs to encourage employees’ commitment to conserve
the environment. Included among these awards are the Eco
Bonus Award (awarded on an ad hoc basis), the President’sAward (given twice a year), and the POINT Evaluation System(given twice a year).

Casio and Employees

June 2006

Casio Hitachi Mobile Communications
Co., Ltd. (CHMC) was established in
April 2004 as a joint venture between
Casio Computer Co., Ltd., andHitachi, Ltd. The company’s businessis the development and design of cellular phones under both the Hitachi
and Casio brands.
Casio Hitachi Mobile
Eco-products are certified as such
Communications Co., Ltd.
under the Hitachi Group’s eco-prodKatsuhiro Wakita
ucts criteria for the Hitachi brand andunder the Casio Green Products certification criteria for the
Casio brand.
In particular, Casio brand products have been certified as
Casio Green Products since 2001, before the joint venture wasformed. Since 2002, Casio Green Products have continued toaccount for 100% of cellular phone sales under the Casio
brand.
In the future, we plan to make use of the strengths of thejoint venture company and increase the completeness of ourlife cycle assessment method.
CHMC has a high percentage of technically expert temporary and contract employees, and there is a lot of turnover as
development themes are completed and new ones begun.
Accordingly, at orientations for new staff members we distribute a guidebook of trash separation rules and a new staff
guidebook that includes basics on information security.
In addition, we implemented a one-month long campaign
last year starting in June in conjunction with Environment
Month, and have been working to make environmental issues
more familiar by publishing a monthly email magazine since
October 2005.

Casio andthe Global Environment

Site nameYamagata Casio Co., Ltd.
Kofu Casio Co., Ltd.
Kochi Casio Co., Ltd.
Casio Electronic ManufacturingCo., Ltd.
Casio Support System Co., Ltd.
Casio Micronics Co., Ltd.
Hamura R&D Center,
Casio Computer Co., Ltd.
Hachioji R&D Center,
Casio Computer Co., Ltd.
Headquarters,
Casio Computer Co., Ltd.
Casio Soft Co., Ltd.
Casio Techno Co., Ltd.
Casio Hitachi Mobile
Communications Co., Ltd.
CCP Co., Ltd.

FY2001
Number ofincidents
Monetary
value

Casio and the Market

Overseas

Japan

Violation of regulations, etc., over the past five years

CSR Management

CCP Co., Ltd., in Japan acquired certification in June 2006.
With this new acquisition, 13 sites in Japan and 9 sites outside Japan have acquired certification or switched over toISO14001: 2004.
Activities from this point onward will shift to continuous
improvement of systems and performance.
Casio will also expand the acquisition of the certification
to sales sites in Japan in order to further establish its systemof environmental conservation.
As of fiscal 2006, the certified business sites represented
84.8% of all employees.

CSR Highlights

Environmental Risk Management /Status of Compliance withEnvironmental Laws and Regulations

Corporate Profile

ISO14001 Certification Status

Casio and the Global Environment

From Eco-product Design to CSR Design
Casio is committed to broadening its design considerations, moving from eco-product designs to designs
that are environmentally friendly and offer a high-quality experience for the user, in line with the universal
design guidelines established by the company.

From the customer’s perspective

Design Guidelines+ Universal(currently being prepared)

Casio Universal Design Policies
Future initiatives

3. Reduce physical and mental stress.
4. Provide safety and reliability.
5. Pursue product value.

Universal Design Activities

Casio and Employees

Casio has already worked out the Casio Universal Design
Policies during the current fiscal year in order to share policy
on universal design activities with all group companies.
Casio is determined
to pursue high-quality
experience for the user.
Going forward, Casio
will continue developing its HCD guidelines
and create products
based on them in evenmore business areas.

2. Simple, understandable operability.

Casio andthe Global Environment

1. Easily understood display and expression.

Casio and the Market

Guidelines for Green
Product Development

CSR Management

CSR Design Guidelines

CSR Highlights

Casio introduced eco-product design in 1993. Since 2001,
it has been developing ISO Type II environmental labelling
products based on Casio’s green product development
guidelines.
Since 2005, Casio’s Design Center, with the help of theEnvironment Center, has been working on the concept ofdeveloping a new product lineup featuring eco-productdesigns. The idea is to systematize and combine eco-productdesigns with universal design as a new CSR design initiative.
Casio has already worked out Universal Design Policies, andis performing assessments of electronic dictionaries andelectronic musical instruments with a view to improving thequality of the user experience.

Obtaining evaluations from customers who actually use theproducts and reflecting that feedback in product development 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.
In fiscal 2006, Casio conducted user tests on the usability
and design features of products by enlisting the cooperationof a wide spectrum of customers, including high school
students, housewives, and the elderly. Casio made specificimprovements to the quality of
the user experience, in termsof both hardware and software, by analyzing the test
results across the lateralorganization made up of thespecialized departments for
Casio’s own UD activity markplanning, development, anddesign.

Corporate Profile

Broader Design Goals: Moving from
Eco-product Designs to CSR Designs

A user test

Basic cycle of the universal design (UD) process

Establish UD goals

To customers
Finalspecifications

Correctly understandusage conditions

Improving thequality ofexperience forthe user

Evaluation by
specialists/users*ISO 13407: An international standard that provides human-centered
design guidelines that should be incorporated whendeveloping interactive systems using computers.

W43

Company Data

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 a highquality 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
applies these concepts not only to the products themselves,
but also to improve packaging and user manuals.

Casio and Society

Delivering a high-quality user experience

Casio Corporate Report 2006

Understand andarrange user needs

Lateral organization
prepares proposedsolutionsCasio and the Global Environment

LCA Evaluation Report
Casio evaluated its Super Slim Projector using life cycle assessment (LCA).

LCA evaluation case study

Total for all stages
0.28 kg

Energy use

4,313.63 MJ

XJ-S30's effect on global warming (CO2 equivalent)(Unit: kg)
250.0

164.60
150.0
100.0

28.87

0.0

2.16

0.57

Raw material Product Distribution
production Production

Use

Disposition

Total

Super Slim Projector XJ-S30/S35

Product characteristics
1. Projection system: DLP ®
2. Brightness: 2000ANSI lumens
3. Display resolution
True: XGA (1,024 x 768)
Compressed: Maximum SXGA (1,280 x 1,024)
4. Slim construction: 43 mm thick (32 mm at
thinnest point)
5. USB compatible, the XJ-S35 enables PC-freepresentations
DLP, the DLP logo and the DLP medallion are trademarks of Texas
Instruments.

W44

Casio Corporate Report 2006

Company Data

1. Energy conservation: Energy consumption can be
reduced by switching the projector from Normal mode
to Eco mode.
2. Resource-saving:Compared to thepredecessor XJ-360,
a. The body of thisPackaging for XJ-S30/S35 (left) and theirpredecessor (XJ-360)
product has been
● Reduced by 14% in volume● Reduced by 40% in thickness
b. The packaging (all made from paper except the softcase) has been
● Reduced by 24% in volume● Reduced by 17% in weight
3. Recyclability: The housing is made of a magnesium
alloy and is easily recycled.
4. Elimination of hazardous substances: The productdoes not contain substances prohibited by the
RoHS Directive.

Casio and Society

Green product technology points

Casio and Employees*ECO-LEAF Environmental Label:
An environmental labelling originating in Japan that
displays quantitative LCA-derived environmental
aspects covering the entire lifecycle of a productfrom the extraction of resources through production,
distribution, use, disposal, and recycling.

Casio andthe Global Environment

Ways to lower the value for the use stage need to be studied
in order to improve the projector’s LCA data. Future challenges are to make further headway in reducing energy useby the light source, improving product parts, and reducing
overall weight.

Casio and the Market

50.0

CSR Management

201.53

200.0

5.33

Future challenges

201.53 kg

Acidification impact (SO2 equivalent)

CSR Highlights

As a mobile projector, the XJ-S30/S35 has a super slim
construction that makes it easy to carry around. It has a highpressure mercury lamp with 2000 ANSI lumens. The lamp
itself consumes 200 W of electricity, resulting in the use stageof the LCA data accounting for a large 82% of the overall
environmental impact.
Accordingly, the product offers an Eco mode, whichboasts lower energy consumption than the Normal mode. By
switching from Normal mode to Eco mode, the projector isput into an energy conservation mode where the lamp is lessbright and the high static pressure Sirocco fan runs quieter.
The Eco mode is effective for use in quiet surroundings andwhen one wishes to adjust the brightness to create a betterbalance with the room lighting.

Global warming impact (CO2 equivalent)

Corporate Profile

LCA Evaluation of the Super Slim Projector XJ-S30/S35, a Casio Green ProductCasio and the Global Environment

Green Procurement and Green Purchasing
Casio promotes procurement that is consistent with the Casio Group Green Procurement Standard
Manual, and is striving to improve the green purchasing ratio throughout the group.

specifications for purchased parts in order to verify in shortorder product conformity with laws and regulations.
In addition, in order to improve the efficiency of its surveys, in February 2006 Casio adopted a system for inputting
answers via the Web, and opened this system for use bysome business partners.

Revision of the Casio Group Green Procurement
Standard ManualParts DB

Database of the inclusion ofchemical substances inparts and conformity withlaws and regulations●

Database of parts that makeup products

Chemical Substance
Environmental Audit Sheet

Decision to clear shipment

Green purchasing rate (number of purchases basis)
Green purchasing rate (%)

by supplier surveys) in Japan: 100%
● Response rate for green parts*1 (percent of parts coveredby supplier surveys) outside Japan: 100%
*1 Response rate for green parts: The percent of the number of parts

50

41.2

30

The response rate for green parts was 100% in Japan and
99.2% outside Japan. The target was not achieved outside
Japan because there were some non-responses on the survey regarding products bound for regions other than Europe,
for which there was a 100% response rate.
This time, in addition to conducting a green procurement
survey, Casio made acceptance inspections of drawings and
W45

25.8

20
10
0

subject to monitoring under Casio’s green procurement survey to thenumber of parts for which responses were obtained from suppliers.

36.7

40

Company Data

● Response rate for green parts*1 (percent of parts covered

60

58.7

60

Performance against fiscal 2006 targets

FY2003

FY2004

FY2005

FY2006

FY2007

FY2008target*2 Green purchasing rate (%):=

Casio and Society

Casio promotes green purchasing, or the purchasing of environmentally friendly stationery, office supplies, and OA
equipment (excluding software).
Casio is working toward the goal of achieving a 60%
green purchasing rate*2 by fiscal 2008 at sites that haveadopted the CATS e-P System*3. The CATS e-P System is acentralized purchasing system for indirect materials. Casio
attaches its own environmental mark to eco-products that areincluded in the system’s catalog and encourages purchasers
to purchase these products.
In fiscal 2006, Casio achieved a 58.7% green purchasingrate. Going forward, Casio will continue to promote this system with the aim of achieving a 60% green purchasing rate infiscal 2007, one year ahead of schedule.

Casio and Employees●

Green Purchasing

Casio andthe Global Environment

Green DB

Casio and the Market

Casio has created a database — the “Green DB”— of information obtained from its green procurement surveys (e.g., theinclusion of chemical substances in parts and conformity withlaws and regulations). By checking this database against a
database of parts that make up products — the “Parts DB”—
designers are able to verify whether a product is designed incompliance with laws and regulations, and department heads
are able to approve products for shipment.

Like fiscal 2006, Casio’s fiscal 2007 target is to achieve a
response rate for green parts of 100% both in an outside
Japan, and to further improve the efficiency of its surveys.
Casio also plans to move beyond green procurement
based on conventional environmental concern to preferential
procurement from companies that are working not only on theenvironment, but also on their corporate social responsibility
as a whole (from “green procurement” to “CSR procurement”). In fiscal 2007, Casio plans to work out CSR
procurement standards and request business partners tocooperate in its survey.

CSR Management

Checking compliance with laws and regulations
using a green database

Future initiatives

CSR Highlights

Since November 2000, Casio has practiced green procurement, or the preferential procurement of parts that have as
little environmental impact as possible, in accordance with
the Casio Group Green Procurement Standard Manual.
In recent years, a number of environmental laws and regulations have been introduced outside Japan, and therequirements imposed on products have expanded. In orderto respond appropriately to these requirements, Casio revised
the Casio Group Green Procurement Standard Manual in
February 2005, publishing a fifth version.

Corporate Profile

Green Procurement

Number of purchases of stationery, office products, and OA equipment(excluding software) with an environmental mark
X 100
Number of purchases of stationery, office prodcts, and OA equipment(excluding software)*3 Sites that have adopted the CATS e-P System:
The headquarters, Hamura R&D Center, and Hachioji R&D Center of Casio Computer Co.,
Ltd., Casio Hitachi Mobile Communications, Eastern Japan hub centers (Chiyoda, Sendai,
Yokohama, Chiba, and Special Sales Office), and Western Japan hub centers (Nagoya,
Osaka, Hiroshima, and Kyoto). Casio plans to expand this group in the future.

Casio Corporate Report 2006

Casio and the Global Environment

Material Balance of Business Activities
Below is a report of the lifecycle inputs and outputs associated with Casio’s business activities.

In Japan, Casio does business in the Electronic Components segment and Electronics segment. Outside Japan, Casio's businessis in the Electronics segment only.
Corporate Profile

Material balance of business activities in fiscal 2006

Inputs

Outputs
Greenhouse gases
R&D/design

Electricity 185.56 million kWh

CO2 emissions 113,482 tons-CO2

Fuel 12,172 (crude oil equivalent) kL
SF6 emissions 18,714 tons-CO2

CSR Highlights

Energy 59,480 (crude oil equivalent) kL

Water resources 3.315 million m3
Air pollutants*2
NOx 138 tons

SF6 (sulfur hexafluoride) 2 tons
Procurement

Paper usage 782 tons

SOx 37 tons

PRTR substance input 209 tons

Dust 3 tons

Wastewater 2.504 million m3

Manuals (recycled material)

4,557 tons (2,117 tons)

Manufacture

Generated waste 8,527 tons

12,984 tons (10,128 tons)

Recycled waste 5,680 tons

CO2 emissions 99,692 tons-CO2

Total products sold 150 million
Sales
TFT-LCD packaging 14 tons

CO2 emissions 40,680 tons

Recovered

Recycled

System equipment from corporate
customers
83 tons

System equipment from corporate customers 71 tons

Household PCs 0.4 tons
Recovery/recycling

Label printer tape cartridges

3 tonsLabel printer tape cartridges 3 tons

Drums and toner cartridges

672 tons

Drums and toner cartridges 635 tons

Rechargeable batteries■ Material balance for business sites■ Material balance for products

1 ton*1: Product distribution is consigned to transportation companies.
*2: Ozone depleting substances are not listed because they havebeen fully phased out.

W46

Casio Corporate Report 2006

Company Data

0.5 tons

Casio and Society

UseElectricity 87.68 million kWh

Casio and Employees

Distribution*1

Casio andthe Global Environment

Landfill disposal 625 tons

Packaging material (recycled material)

Casio and the Market

Releases and transfers of PRTR substances 127 tons
Parts and materials 24,759 tons

Household PCs

CSR Management

Recycled industrial water 208,000 m3

Casio and the Global Environment

Material Balance by BusinessCasio’s Electronic Components segment, which operates only in Japan, includes six sites
at four companies. Casio’s Electronics segment, which operates in and outside Japan,
includes 21 sites at 15 companies in Japan and 17 companies outside Japan.
Material balance of the Electronics segment

Outputs

Electricity 51.06 million kWh

Greenhouse gases
R&D/design

Fuel 4,309 (crude oil equivalent) kL

CO2 emissions 41,964 tons-CO2
Air pollutants*2

Water resources 523,000 m3

Corporate Profile

InputsEnergy 17,454 (crude oil equivalent) kL

NOx 118 tons
SOx 30 tons
Dust 2 tons

Paper usage 328 tons
Procurement
Parts and materials 23,995 tons

Releases and transfers of PRTR substances
1 ton
Wastewater 335,000 m3

Manuals (recycled material)
4,557 tons (2,177 tons)

Generated waste 3,422 tons
Manufacture

Landfill disposal 619 tons
Recycled waste 2,632 tons

CO2 emissions 99,692 tons-CO2

Sales

Total sold products 100 million

Use

CO2 emissions 40,680 tons

Electricity 87.68 million kWh

Recovered

Recycled
83 tons

Household PCs

0.5 tons

Label printer tape cartridges

System equipment from
corporate customers 71 tons
Recovery/recycling

Household PCs 0.4 tons

3 tonsLabel printer tape cartridges 3 tons

Drums and toner cartridges 672 tons
Drums and toner cartridges 635 tons
1 ton

*1: Product distribution is consigned to transportation companies.
*2: Ozone depleting substances are not listed because they have been fully phased out.

Material balance of the Electronic Components segment

Outputs
Greenhouse gases
CO2 emissions 71,518 tons-CO2

Electricity 13.45 million kWh
Fuel 7,863 (crude oil equivalent) kL

R&D/design

Water resources 2.792 million m3

NOx 20 tons
SOx 7 tons

Recycled industrial water 208,000 m3
Paper usage 454 tons
Procurement

SF6 (sulfur hexafluoride) 2 tons

Releases and transfers of PRTR substances
126 tons
Wastewater 2,169 thousand m3
Generated waste 5,105 tons

Parts and materials 764 tons
Packaging material (recycled material)
594 tons (498 tons)

Manufacture

Landfill disposal 6 tons
Recycled waste 3,048 tons

Distribution*1

Total sold products 50 million
Sales
TFT-LCD packaging 14 tons

■ Material balance for business sites■ Material balance for products

W47

Casio Corporate Report 2006

Company Data

PRTR substance input 208 tons

SF6 emissions 18,714 tons-CO2
Air pollutants*2

Casio and Society

InputsEnergy 42,026 (crude oil equivalent) kL

Casio and Employees

Rechargeable batteries

Casio andthe Global Environment

System equipment from
corporate customers

Casio and the Market

Distribution*1

CSR Management

Packaging material (recycled material)
12,390 tons (9,630 tons)

CSR Highlights

PRTR substance input 1 ton

Casio and the Global Environment

Environmental Accounting
Fiscal 2006 performance
2. Environmental conservation cost by conservation measure(Unit: ¥ million)(Unit: ¥ million)
Capital investment
Category

Electronics

Electronic
Components

Environmental cost
Electronic
Components

Electronics

Total

Capital investment
Total

Category

2006 2005 2006 2005 2006 2005 2006 2005 2006 2005 2006 200531

Pollution
prevention cost
Globalenvironmental
conservation cost

12

Resource
circulation cost

19

132

105

473

136

605

245

246

457

453

702

699

8

64

314

64

322

11

13

295

296

306

309

122

41

82

53

204

65

26

20

8

85

34

2

77

19

79

169

207

142

149

311

356

Electronic
Components

Electronics

Total

Global warming
measures11

122

Ozone layer
protection measures

41

148

52

8

Air quality
conservation
measures

3

270

5

11

6

25

R&D cost

29

20

95

73

3

5

76

74

79

79

8

51

28

54

28

12

12

25

265

20

12

368

277

201

167

68

74

269

241

64

56

66

130

4

60

1

Conservation
measures for theaquatic, ground, andgeologic environments

1

13

Waste andrecycling measures

4

Measures forchemical substances

28

254

14

43

12

6

12

Social activity cost

6

6

4

7

7

206

204

213

211

47

379

376

140

148

519

524

34

132

91

104

3

236

94

6

3

6

7

12

10

271

202

50

86

321

288

864

738

611

543 1,475 1,281

31

148

641

864

738

611

543 1,475 1,281

162

117

479

148

641

* See page 67 of Web version for details on the scope of coverage.
* The accounting procedure for fiscal 2006 newly accounted for depreciation costs in environmental
costs (depreciation costs for fiscal 2005 were retroactively accounted for to enable comparison with theprevious fiscal year).
* Personnel expenses are calculated using the average unit price.

<< Environmental cost >>Global warming
measures

Air quality conservation
Conservation measures forthe aquatic, ground, andgeologic environments
Waste/recycling

Amount of capital investment

Item by areaof measures

Main details for current term

52

54
13
1

Chemical
substances/other

28

Total

148

Ensuring the power source capacity andconserving energy in power systemtransformers for production and construction
equipment, and installation of highly energy
efficient transformers.
Installation of COF2 cylinder cabinets
and COF2 mixing devices.
Increasing CVD gas removal equipment toincrease the performance of TFT-LCD panels.
Installation of wastewater treatment tanks
and neutralization tanks.
Storage warehouses and equipment forrecyclables
Evaluation equipment / Installation of a solar
water heater on the roof of Casio Electronic
Technology (Zhongshan) employee dormitory.

W48

Global warming measures
Air quality conservation(Unit: ¥ million)

Environmental cost
Main details for current term
95 Boiler modifications, air-conditioner renewals
Maintenance and management of exhaust
79 gas treatment equipment

Conservation measures forthe aquatic, ground, andgeologic environments

213 Repair of wastewater treatment equipment

Waste/recycling

519 Recovery and recycling of toner and drum sets
Respond to RoHS Directive survey, trial
manufacture cost of lead-free products

Chemical substances

236

Natural environmental
conservation

12 Landscape planting within company grounds

Other
Total

Casio Corporate Report 2006

Preparation of an environmental report,
321 ISO maintenance and management,
WEEE compliance
1,475Company Data

Item by areaof measures(Unit: ¥ million)

Casio and Society<< Capital investment >>gas: A gas emitted during the CVD process, which creates film of silicon orother substance on the board during the manufacture of TFT-LCD panels.)Casio and Employees

In terms of the environmental efficiency of sales, CO2
environmental efficiency came to 5.11 (¥ million/ton-CO2 ) andwaste environmental efficiency came to 68 (¥ million/ton) due
to increased business activities, while the amount of waste
sent to landfill disposal improved over the previous fiscal year
(a year-on-year decrease of 436.9 tons) due to the company’s
aggressive recycling efforts. In addition, environmental
efficiency for chemical substances specified in the PRTR Law
was 2,777 (¥ million/ton), and 32% of the amount used wasrecovered and recycled.
In the future, Casio will steadily implement medium-term
measures with the aim of expanding economic andenvironmental conservation effects through energy andresource conservation-associated cost savings and theimprovement of environmental performance indicators. (*CVD

Casio andthe Global Environment

In fiscal 2006, capital investment came to ¥148 million,
environmental conservation costs totaled ¥1.475 billion, andeconomic effects came to ¥133 million.
Following last fiscal year’s investments in energy
conserving air conditioning equipment, water supply anddrainage treatment equipment, and equipment to prevent
global warming, during the current fiscal year Casio
continued to work on air quality conservation by installing
equipment to detoxify the higher CVD gas* emissions
accompanying increased production of TFT-LCD panels.
Environmental costs increased over the previous fiscal
year due mainly to strengthened responses to Europe’s RoHS
and WEEE Directives.
Economic effects were ¥263 million in business revenue
from recycling and absorption of ¥130 million in increased
costs related to energy conservation, resulting in a total
economic effect of ¥133 million.

Casio and the Market

479

117

16

16
Total

Other cost
162

2

4
Other

31

1

254

Natural environmental
conservation

Total

53

CSR Management

Administration cost

348

Total

66

Noise and vibration
measures

Upstream/
downstream cost

Electronic
Components

2006 2005 2006 2005 2006 2005 2006 2005 2006 2005 2006 2005

CSR Highlights

Breakdown

Business area cost

Electronics

Environmental cost

Corporate Profile

1. Environmental conservation cost by business activity

Casio and the Global Environment

4. Environmental conservation effect(Unit: ¥ million)
FY2006
FY2006

Energy cost savings through energy
conservation activities*2

Environmental performanceindicators

Unit

–184

Water and sewerage savings and copy
paper purchase savings throughresource-saving activities

1

Electronics

FY2005DifferenceElectronic
Electronic Electronics Electronic
Electronics
component
component
component

Total energy input

Crude oilequivalent (kL)17,45442,026

15,45840,357

1,996

1,669

Water resources input

Thousands m3

523

2,792

466

2,551

58

241

Emissions of greenhouse gases
CO2

Tons-CO2

41,96471,51840,35069,083

1,614

2,435

Business revenue from recycling

263

SF6

Tons-CO2018,7140

16,551

0

2,163

242

Usage of substances specified
under the PRTR Law
Emissions of substances
specified under the PRTR Law

Tons

1

208

16

167

–15

41

Tons

0

37

0

29

0

8

Tons

3,422

5,105

3,085

4,359

337

746

(Amount sent to landfill disposal) Tons

Breakdown

Profits

19

Reuse of parts and materials
Sale of cardboard and scrap metal

21

Total generation of waste

Customers effect*3

7Total wastewater

Other (distribution cost savings throughdownsizing of products)

619

6

1,051

11

– 432

–5

Thousands m3

335

2,169

256

1,301

79

868

27

Total

Tons

11

23

7

19

4

4

Tons

12

0

0

0

12

0

NOx

Tons

118

20

83

16

35

4

SOx

Tons

30

7

23

8

7

–1

Soot and dust

Tons

0

Other emissions*1 Cost savings: Adjusted by turnover increase rate.
*2 Minus sign: Indicates a negative result.
These are mainly due to increased energy consumption accompanying
increased production and the large effect of surges in oil prices.
*3 Customer effect: Environmental effects generated by customers to powersaving technology converted to monetary value.
(Difference between annual electrical power usage/consumption for total soldunits in fiscal 2005 and fiscal 2006) x Unit price of electrical power

2

0

2

1

1

316

0

317

0

–2

0

Tons

13,065511

12,350

483

715

28

Tons

12,390594

11,676

607

714

–13

Energy consumption during usage

Thousands GJ

Recycled amount of used and recovered
products, containers, and packaging
Containers and packaging usage

Environmental efficiency in terms of sales

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

Environmental efficiency
Sales (¥ million)in terms of sales=
Usage of PRTR substances (tons)(PRTR substances)Environmental
Sales (¥ million)
efficiency in terms of =Waste emissions (tons)
sales (waste)

6

5.16

5.11

5.11

*PRTR substances: Chemical substances specified in the
PRTR Law (Law Concerning Reporting, etc. of Release ofSpecific Chemical Substances to the Environment andPromotion of the Improvement of Their Management)
90

4,000

75

5

68

66

3,000

2,927

3,055

2,777

60

4

Company Data

2,000

3
30

2

1,000
1
0

Casio and Society*Tons-CO2: Various greenhouse gases converted to their
CO2 equivalent amount and expressed in tons.
*The CO2 conversion factor has been revised and applied
retroactively.

Casio and Employees

Casio’s environmental efficiency in terms of sales is given below in terms of CO2, waste, and substances specified
under the PRTR Law. These indicators have changed due to increased production, but Casio intends to continue
improving them.

Casio andthe Global Environment* Some of the calculated results shown in the difference columns in the table may not match due to the rounding of fractions.
* CO2 conversions are calculated using the coefficient from the Ministry of the Environment’s Guidelines for Calculating
Greenhouse Gas Emissions from Businesses (2003) and applied retroactively.

Casio and the Market

BOD
COD

133

CSR Management

Waste treatment cost savings throughresource-saving or recycling

CSR Highlights

Cost savings*1

EffectCorporate Profile

3. Economic effects accompanying
environment conservation measures

FY2004

Consolidated
sales(¥ million)

CO2 emissions(tons-CO2)

FY2005

FY2006

FY2004

FY2005

FY2006

523,528

559,006

580,309

101,374

109,432

113,4820

FY2004

Consolidated
sales(¥ million)

Total generationof waste (tons)

FY2005

FY2006

FY2004

FY2005

FY2006

523,528

559,006

580,309

7,884

7,444

8,527

0

FY2004

Consolidated
sales(¥ million)

Usage of PRTR
substances (tons)

FY2005

FY2006

FY2004

FY2005

FY2006

523,528

559,006

580,309

179

183

209

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

W49

Casio Corporate Report 2006

Casio and the Global Environment

Initiatives to Prevent Global Warming
Casio is committed to reducing the emission of greenhouse gases derived from its
business activities.

In Japan

20,00015,00010,000
5,000
0

0.33

18,562

18,024

14,747

11,8000.32

0.32

FY2003

FY2004

FY2005

FY2006

Other greenhouse gas reductions
The global warming potential of SF6 is 23,900 times greaterthan CO2. Reducing SF6 emissions is therefore an important
issue.
Kochi Casio has implemented a number of measures toreduce the SF6 (sulfur hexafluoride) that it uses in the etchingprocess during TFT manufacturing.
In fiscal 2006, usage increased 0.2 ton compared to theprevious fiscal year. This was due to increased production of
TFT-LCDs.
Emissions increased 270% compared to the 2000 level,
which is the reduction target. Bringing emissions down to the2000 level by 2010 is proving to be a high hurdle.

SF6 usage

SF6 emissions

SF6 emissions (CO2 equivalent)

Tons-CO2(CO2 equivalent)
18,00016,00014,200 1.28
1.19
15,20014,0001.39
16,5511.40
1.20

12,0001.00

10,000
8,000

0.58

6,931

0.55

6,000
4,000

0.59

0.64

0.69

0.79 0.80
0.60

6,585
0.23

0.29

0.40
0.20

0

Fiscal 2006 CO2 emissions increased by 4,600 tons compared to the previous fiscal year. This increase was due to thestart of operations at Casio Electronic Technology (Zhongshan) Co., Ltd., in February 2006 and to the fact that, as inJapan, the factor for converting electrical power to CO2 wasrevised. Previously, Casio used the values shown in the reporton the estimation of CO2 emissions per unit production in the
power generation sector of each country published by theJapan Electrical Manufacturers’ Association (JEMA) in March
2002. As of the current fiscal year, Casio uses the updated
report published by JEMA in March 2004.
Casio, Inc., has taken steps to reduce emissions such as
installing fans that re-circulate heat and reduce emissions by

W50

FY2001

FY2002

FY2003

FY2004

FY2005

FY20060.00

In fiscal 2006, Kochi Casio considered the following two
measures to achieve its target:
1. Switch SF6 to an alternative gas that has a lower global
warming potential.
2. Installation of scrubbers.
The company plans to form a conclusion by the end of fiscal
2008 about which method it will adopt.

Casio Corporate Report 2006

Company Data

2,000

Outside Japan

Casio and Society

Tons
18,700 1.80
1.57
1.60

20,000

Casio and Employees

Usage and emissions of a greenhouse gas (SF6) other than CO2,and equivalent CO2 emissions

Casio andthe Global Environment

An example of Casio’s efforts is the installation of energy
conserving equipment at Casio Micronics (Yamanashi),including a free cooling system and energy conserving powertransformers.
In the future, Casio Micronics (Ome) is planning to
replace a compressor with an energy conserving model, andKochi Casio is also planning to use demand control (a meansof conserving energy by controlling peak energy demand).

25,000

Production related
Non-production related(Tons-CO2/
Emissions per unit of production¥ million)
5,697
0.37
5,774
0.37
0.36
4,740
0.35
3,280
0.34
0.34

Casio and the Market

CO2 emissions and emissions per unit of actual production (in Japan)
Electronics(Thousands ofElectronic Components(Tons-CO2/
tons-CO2)¥ million)
Emissions per unit of actual production
100.0
71.5
0.30
0.30
69.0
90.0
68.2
0.29
80.0
57.8
67.8
0.28
62.8
70.0
60.0 0.27
0.26
0.25
50.0
0.24
0.24
40.0
30.0
0.23
0.22
20.0
10.0
15.3
17.8
16.6
0.20
15.2
12.9
13.7
0.0
FY2002
FY2003
FY2004
FY2005
FY2001
FY200630,000CSR Management*1 Previously, Casio used the conversion factor from four electrical andelectronic industry associations’ Voluntary Action Plan for Global
Environmental Protection, since fiscal 1991 was the index year for its
environmental action plans in Japan. However, because the index year
was revised, in Japan Casio now uses the Guidelines for Calculating
Greenhouse Gas Emissions from Businesses (draft version 1.6).

CO2 emissions and emissions per unit of production (outside Japan)(Tons-CO2)

CSR Highlights

Fiscal 2006 CO2 emissions increased by 3,700 tons (+ 5.6%)
in Japan over the fiscal 2005 level. Reasons for the increase
include expanded COF production by Casio Micronics(Yamanashi) and an expansion of Kofu Casio’s (Ichinomiya)molding business in the Electronic Components segment,
and a shift to a 24-hour system for toner production at Casio
Electronics Manufacturing in the Electronics segment, as well
as a different calculation method to convert electrical power
to CO2 using a conversion factor.*1
In addition, CO2 emissions per unit of actual production
increased by 23% compared to fiscal 2004.

an amount equivalent to 20% of the company’s natural gas
consumption, and adding energy conserving equipment thatcut energy consumption by 163.8 kWh per year. Casio(Thailand) Co., Ltd., has also implemented energy conserving
measures, such as enhancing the thermal insulation in theplant roof.

Corporate Profile

Each group company in and outside Japan has set reduction
targets and is undertaking a variety of initiatives to meet the
reduction targets under the Kyoto Protocol.

Casio and the Global Environment

Prevention of Air and Water Pollution andReduction of Industrial Water Usage
Casio is working to reduce emissions of SOx, NOx, soot and dust, BOD, and other pollutants,
and is also working to reduce industrial water usage.

Periodic measurement of emissions andcompliance with laws and regulations

Industrial water usage and usage per unit of actual production and per unit of production (in and outside Japan)
Thousands m3
3,500

0.00760.0072

3,000

Fiscal 2006 performance

2,500

0.0062
170

0.002
500

NOx emissions (tons)

15
10
5
0

FY2003

FY2004

FY200590
60
30
0FY2003

FY2004

FY2005

FY2006

Casio was not involved inany soil pollution incidents
in fiscal 2006.

11

250

254

274

318

FY2003

FY2004

FY2005

FY20060.001
0Casio sets strict voluntary standards for water pollutants andmeasures emissions periodically (twice a year) at sites inJapan to ensure compliance with its own and legal standards.
At sites outside Japan, Casio periodically (once a year)
measures emissions where regulatory standards havebeen established. In either case, Casio observes all
regulatory limits.

Emissions trends

2.5
2.0
1.5
1.0
0.5
0

FY2003

FY2004

FY2005

FY2006

Reduction of Industrial Water Usage

In fiscal 2006, BOD increased compared to fiscal 2005. This
increase was due to increased wastewater and to the factthat Casio (Thailand)’s
BOD emissions
measurements were added
35
in. BOD for the Electronic
30
Components business25
accounted for 68% of the20
15
overall BOD value.

Future initiatives
In fiscal 2006, industrial water usage per unit of production at
production sites in Japan increased 34% from the fiscal 2001
level despite the target of a 5% reduction.
W51

Casio will continue working
to ensure it remains in compliance with regulatory limits.
Casio Corporate Report 2006

10
50

FY2003

FY2004

FY2005

FY2006

Electronics business outside Japan
Electronic Components business in Japan
Electronics business in Japan

Company Data

Electronics business in Japan

Soot and dust emissions (tons)

Soot and dust emissions
Electronic Components business in Japan

11

120

FY2006

Electronics business outside Japan13

BOD emissions (tons)

20

13

Water usage – Production
sites outside Japan
Usage per unit of actual
production (in Japan)
Usage per unit of production(outside Japan)

Casio and Society

SOx emissions (tons)

25

0.003

Casio and Employees

30

0.004

Periodic measurement of emissions and compliance with laws and regulations

150

35

Water usage – Non-production
sites outside Japan

Casio andthe Global Environment

NOx emissions

40

2,792

2,545

2,468

2,121

1,000

Water usage – Electronic
Components business in Japan

0.006
0.005

0.0043

Water usage – Electronics
business in Japan

0.007

Reduction of Water Pollutants (BOD)

Casio is considering changing from heavy fuel oil A to fuelssuch as city gas, kerosene, and LPG, which emit fewer air
pollutants.

SOx emissions

0.0041

0.009
0.008

168

1,500

0

Future initiatives

180

0.0079194

0.00502,000

Casio Micronics (Ome) reduced its emissions of SOx from 1.4
tons in fiscal 2005 to 0.8 tons in fiscal 2006 by switching fromheavy fuel oil A to city gas as the fuel for cold and hot water
generators.

Thousands m3/ ¥ millions

0.0085

Casio and the Market

Since fiscal 2004, emissions of air pollutants from theElectronics business in Japan have increased greatly. This
increase was due to the installation of a cogeneration system
at Yamagata Casio and due to the initiation of full-scale
operations.

Casio aims to achieve the following targets.
■ Sites in Japan: 10% reduction in industrial water usage perunit of actual production by fiscal 2009 compared to fiscal
2001.
■ Sites outside Japan: 5% reduction in industrial water usage
per unit of production by fiscal 2009 compared to fiscal
2005.

CSR Management

Emissions trends

Future initiatives

CSR Highlights

Casio sets strict voluntary standards for air pollutants andmeasures emissions periodically (twice a year) at sites inJapan to ensure compliance with its own and legal standards.
At sites outside Japan, Casio periodically (once a year)
measures emissions where regulatory standards havebeen established. In either case, Casio observes all
regulatory limits.

This increase was due to the fact that even though water
usage (i.e., the numerator) increased by 301,000 m3 to 3,311
thousand m3, compared to fiscal 2005, the production value(i.e., the denominator) was lower, owing to a unit pricedecrease in TFT-LCDs.
Moreover, in fiscal 2006, Casio used 249,000 m3 of recycling water, which corresponds to 7.5% of its water usage.

Corporate Profile

Reduction of Air Pollutants (SOx, NOx,and Soot and Dust)

Casio and the Global Environment

Control of Chemical Substances andReducing Their Use
Casio observes laws and regulations on chemical substances, exercises proper managementof them, and endeavors to reduce the use of those that are potentially harmful.

Laws and regulations that must be complied with for purchasedmaterials with an A or B classification (based on investigation)
No. ProductEnvironmental
classification

CAS #Applicable laws

A

7439-92-1 RoHS Directive

2

A

7439-92-1 RoHS Directive

Phase-out and registration of hazardous substancesB

7664-93-9

Industrial Safety
and Health Law

30

Ethylbenzene

40

1

9.38

Ethylene glycol

43

1

4.36

N,N-Dimethylformamide

58

0.05
4.12

3.88

0.07

0.11

Xylene

63

1

42.23

20.36

21.87

2-Ethoxyethyl acetate

101

3

17.42

10.16

7.26

Organotin compounds

176

1

5.51

5.51

Theouria

181

1

30.54

30.53

Water-soluble copper salt

207

1

47.99

0.01

Toluene

227

0.37

0.2

Lead and its compounds

230

Nickel compounds
Hydrogen fluoride and its
water-soluble salts
Octylphenyl ether

232

1

1.2

283

1

8.18

308

1

3.65

Total

47.86

0.12
0.17

0.46

208.57

Dealing with asbestos

4.36

0.18

0.44

0.02

68.39

1.2

In fiscal 2006, Casio conducted studies into
asbestos that can become airborne at companyowned buildings in Japan. Asbestos that canbecome airborne was found at four sites (Hamura
R&D Center, Kofu Casio (head office), Casio
Hitachi Mobile Communications, and the HealthResort at Yugawara). However, no airborne
asbestos above regulatory limits was found at
any of the sites.
Casio will finish safely removing the asbestos
from these four sites by the end of 2006.

0.04

1.59

6.54

35.02

1.71 13.61

87.94

0.49

W52

Casio Corporate Report 2006

3.65

Company Data

0.05

Bisphenol A epoxy resin

Casio and Society

Casio completed its compliance with the EU’s RoHS Directiveby the end of 2005.
Chemical substances control system
Going forward, Casio will work to phase out
Compliance
ChemicalMaterial
Environmental Division
Non-inclusion
and register hazardous substances in compliProduct
MSDS substance inclusion manual by laws ICP data Catalogue
code
control No. classification
guarantee
research sheet and regulations
ance with J-Moss (a directive requiring a mark to
0001
123
B
be placed on products that contain more than a
0002
456
B
certain content rate of specific chemical sub0003
789
B
stances), which became mandatory with Japan’s
revised Law for the Promotion of Effective
Amounts of PRTR-controlled chemical substances
Utilization of Resources. It will do the same tohandled, released, and transferred in fiscal 2006
(Unit: Tons)
comply with laws and regulations on lead, cadmiAmountusing 1 or Amount Amount released
Class 1 designated
AmountSubstance Sites
AmountAmounttransferredmore tons ofchemical substanceNo.
um, mercury, and hexavalent chromium in Norththe substance handled Atmosphere Public waters removed Amount of waste consumed recycled
2-Amino ethanol
0.07
20.51
36.75
13.61
2.56
2
16
America and China equivalent to the RoHS
Antimony and its compounds
0.3
0.3
25
Directive, as well as the REACH Regulation.
3

Casio and Employees

1

A: Restricted substances
B: Substances to be
reduced
C: Substances to be controlled
E: General substances

Casio andthe Global Environment

Casio Micronics case study

Casio and the Market

Casio uses 16 substances subject to Japan’s Pollutant
Release and Transfer Register (PRTR) Law. The Electronic
Components business uses 14 of these chemical substances,accounting for 99.7% of Casio’s usage.

Casio is storing PCB-containing equipment (19 high pressure
condensers and 258 small ballasts) according to legally prescribed methods at the Hamura R&D Center, Hachioji R&D
Center, and Kofu Casio (head office).
The 13 high pressure condensers and all 258 small ballasts stored at the Hamura R&D Center and Hachioji R&D
Center are scheduled to be properly disposed of by fiscal
2008, as regional sites of the Japan Environmental Safety
Corporation open. The six high pressure condensers stored
at Kofu Casio (head office) are scheduled to be properly disposed of by fiscal 2009 as regional sites open.

CSR Management

Control of substances subject to Japan’s PRTR Law

Storage and treatment of PCB-containing equipment

CSR Highlights

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.
1. Risks from chemical substances used during the production process are:
• Health effects to people engaged in productmanufacturing• Health and environmental effects to neighborhood
residents and the local area
2. Risks from chemical substances included in products are:
• Health effects to customers while using the products• Environmental effects after the products are disposed
Casio controls these chemical substances appropriately andis striving to replace them with chemical substances thathave lower risks.

The Electronic Components business receives a highnumber of requests for chemical controls from customers.
In November 2005, Casio Micronics built a unique systemfor disclosing information on the control of chemical substances in order to respond to such requests. In this system,
chemical substances included in products to be delivered tocustomers and those included in materials used during the
manufacturing process were divided into four categories (A,B, C, and E) based on the level of control, and then investigated. The investigation results were then used to enter
information on the control of chemical substances on the
Casio Micronics Website.
Furthermore, in February 2006, the company built a chemical substances control system that enables information on
the control of chemical substances to be entered into Casio
Micronics backbone management system, AS 100. This movemade it possible to efficiently understand and monitor theusage of individual chemical substances included in enteredmaterials as well as applicable laws and regulations.

Corporate Profile

Risk Management and Reduction
Policy for Chemical SubstancesCasio and the Global Environment

Reduction of Waste Generation andLandfill Disposal
Casio is promoting zero emissions in order to reduce the generation of waste andthe amount of landfill disposal.
Fiscal 2006 targets (in Japan)

Outside Japan – Generation ofwaste
In Japan – Generation of waste• Achieve zero emissions at sites in Japan by fiscal 2006
• Reduce the generation of waste per unit of production by
30% by fiscal 2006 compared to fiscal 2001

Tons
9,000

1,832
1,123

8,000

Fiscal 2006 performance (in Japan)

246

5,000
4,000
3,000

5,699

1,000
0

0.80

FY2002

FY2003

FY2004

FY2005

FY2006

Electronics – Amount
generated
Electronics – Amount sent
to landfills
Waste per unit of production
Tons
8,000

Electronic Components – Amount
generated
Electronic Components – Amountsent to landfills

0.034

0.034

0.035

0.031

4,225
3,885

5,131

4,944

5,105

4,359

3,000
2,000

0.035

0.90

0.030

0.70

0.025

74
FY2006

1,814

68

225
FY2002

1,392
46

103
FY2003

1,629

19

1,428

11

0.96
1.00

0.72

0.86

0.76

0.50

0.60 *

0.69

0.020

FY2001 FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009

0.015* Casio is basing its projections on the Bank of Japan’s Domestic
Corporate Goods Price Index (electrical equipment) for 2008.

0.010

254

FY2001

551

101
FY2005

0.005

1,590
6.2

80

90

68

FY2004

FY2005

FY2006

0.000

1,20

1.00
1.00

0.98
0.90

0.80
FY2005

Casio Corporate Report 2006

FY2006

FY2007

FY2008FY2009Company Data

W53

CO2 emissions per unit of production(fiscal 2005 index of 1, target year fiscal 2009)

Casio and Society

Sites outside JapanThe generation of waste (i.e., the numerator in calculating
generation of waste per unit of production) increased 908
tons compared to fiscal 2005. The generation of waste in theElectronic Components business in particular increased dramatically, by 746 tons. This increase in the generation ofwaste was due to increased business activity.
In contrast, production value (i.e., the denominator)
decreased, in part due to a unit price decline in TFT-LCDs.
The amount of landfill disposal decreased 27 tons.
This decrease was attributable to aggressive recycling
efforts in the Electronic Components business, including the
production of eco-cement by Kochi Casio and the selection of
a waste-resource recycler by Kofu Casio.
Looking at the generation of waste in Japan versus outside Japan in fiscal 2006, sites in Japan generated 6,695 tons
(78.5%) while sites outside Japan generated 1,832 tons
(21.5%) of the total 8,527 tons.
In fiscal 2006, the amount of landfill disposal was 74 tons
(11.8%) in Japan and 551 tons (88.2%) outside Japan, for a
total of 625 tons.

Casio and Employees

5,000

835

688

■ Sites in Japan
Reduce the generation of waste per unit of actual production
by 40% by fiscal 2009 compared to fiscal 2001.

1.10

0.040

0.035

2,389

99
FY2004Sites in Japan
CO2 emissions per unit of actual production(fiscal 2001 index of 1, target year fiscal 2009)

Tons / ¥ million
0.045

0.040

6,000

0

319

148
FY2003

Casio andthe Global Environment

Generation of waste, amount of landfill disposal,
and waste per unit of production (in Japan)

1,000

410

■ Sites outside Japan
Reduce the generation of waste per unit of production by
10% by fiscal 2009 compared to fiscal 2005. Casio will workto achieve the reductions shown in the graphs below.

0.88

0.60

4,000

19
293
FY2002

1.00
0.97

0.97

7,000

6,695

Casio and the Market

1.14

FY2001

5,787

Future targets

Generation of waste per unit of production (fiscal 2001 index of 1)
1.00

6,760

CSR Management■ Reduction of the generation of waste
The generation of waste per unit of production remained at
the fiscal 2001 level.

1.00

6,336

2,000

CSR Highlights

6,000

1,656

712

7,000

■ Achievement of zero emissions
Casio Micronics (Ome) and Casio Soft newly achieved zero
emissions status. With the addition of these two sites, all sites
relating to the Electronic Components business haveachieved zero emissions status, and overall, 13 of the 16 targeted sites have done so.

1.20

Outside Japan – Amount oflandfill disposal
In Japan – Amount oflandfill disposal

Corporate Profile

Generation of waste and amount of landfill disposal(total for in and outside Japan)

Casio and the Global Environment

Environmentally Friendly Distribution
Casio is taking bold steps to reduce environmental impact by improving the efficiency
of distribution through a modal shift and other measures.

Distribution Initiatives in Japan

Air

Rail

North America

11,751

28,812

1,611

42,174

Europe10,19831,695041,892

Japan

3,126

8,718

0

11,844

China

134

211

0

345

ASEAN

118

0

0

118

Total

25,327

69,436

1,611

96,373* Finished products only

Noteworthy efforts■ Shipments to Europe
Casio reduced CO2 emissions by switching someshipments to Europe from air, to sea and air throughDubai.

16.0
11.0

10.2

9.6

FY2001

FY2004

FY2005

FY2006

Switched sea and rail shipments
through the west coast of
North America to all water.

Casio andthe Global Environment

5.0

Switched some air shipments to
Europe to sea and air through Dubai● CO2 emissions
5,000

4,000

(Unit: tons-CO2)

Suzuka ➝ Customer
Distribution Center ➝ Customer

4,323
296

Suzuka ➝ Distribution Center
Plant/port ➝ Suzuka

3,000

1,758

3,321

697

742

1,155

1,126

FormerNoteworthy efforts

1,077

2,000

■ Improved shippingboxes for printers

1,868
1,249

0

401

364

344

FY2001

FY2004

FY2005

Prevailing container load New container load
capacity for printers:
capacity for printers:

78 (2005)

162 (2006)

1256
245
FY2006* Finished products in Japan only, excluding the shipment of system products.
* Totals in the graph may not be perfect due to the rounding of fractions.

Casio improved thecontainer load efficiency twofold byimproving productand packaging
designs.

Container load efficiency improved twofold byimproving product and packaging designs.
Accordingly, the number of containers shippedfrom plants in China was cut in half.

■ Target: Reduce CO2 emissions per unit of sales by 5% by
fiscal 2008 compared to fiscal 2005.
■ Fiscal 2006 performance:
Fiscal 2006 CO2 emissions were nearly level with those of
fiscal 2005, at 100.6%, but were 96.9% on a per-unit-ofsales basis, a roughly 3% decrease.

W54

Casio needs to gain an understanding of its overall shipment
volume in order to comply with Japan’s revised Energy
Conservation Law that came into effect in April 2006.
Going forward, Casio will first work to gain an understanding of this year’s shipments that are not currently monitored—that is, shipments of system products and shipments of items
other than finished products, including parts. In addition,
Casio will continue to promote the consolidation of sites andthe modal shift with a view toward achieving its fiscal 2008
targets in and outside Japan.
Casio Corporate Report 2006

Company Data

Future initiatives

Distribution initiatives outside Japan

Casio and Society

1,324

1,000

Current (2005 and after)

Casio and Employees

3,417

435

3,279

Casio and the Market(Unit: tons-CO2 / ¥ billion)
20.0

CSR Management● CO2 emissions per unit of sales

10.0

Total

■ Shipments to North America
Casio reduced CO2 emissions by adopting all-water
shipments over the prevailing sea and rail shipments
to the east coast of North America.

Distribution-related CO2 emissions per unit of sales

15.0

Unit: Tons-CO2

Sea

CSR Highlights■ Target: Reduce CO2 emissions per unit of sales by 50% by
fiscal 2008 compared to fiscal 2001.
■ Fiscal 2006 performance:
Fiscal 2006 CO2 emissions were 97.2% those of the previous fiscal year and 94.8% on a per-unit-of-sales basis. CO2
emissions per unit of sales were reduced by 40% compared to fiscal 2001.

Fiscal 2006 CO2 emissions by region/route

Corporate Profile

Casio is working to reduce environmental impact under a policy that targets both environmentally friendly distribution andimproved distribution services for customers.

Casio and the Global Environment

Environmentally Friendly
Packaging Materials
Casio is moving forward with improvements in packaging todevelop environmentally friendly packaging.

Gross usage of packaging materials and usage per unit of sales(Unit: tons)
14000

Gross usage of packaging
materials

27.6

Per unit of sales(Unit: tons / ¥ billion)
30.0

27.8
24.3

12,000

23.2

22.0

25.0
19.4

8,000
6,000

20.0
15.0

12,27010,627

10,70812,155

12,284

12,422

13,600

10.0

4,000

0

FY2001

FY2002

FY2003

FY2004

FY2005

FY2006

FY20080.0*The figures for gross usage of packaging materials are paper-based,
cardboard, polystyrene foam and plastic materials.

Example of effort to improve packaging in fiscal 2006

● Implementation organizations
The Development Headquarters, Electronic Component
Department and Casio Hitachi Mobile Communications implement
the plans (Do).

W55

Future initiatives● Casio will develop universal desing packaging that is easy
to open, allows easy removal of products, and is easy todispose of or recycle.
● Casio will reduce the usage of plastic by switching fromdiverse packaging designs for sales promotion displays,
which have been using more plastic due to diversificationof packaging designs, to common forms.
● Casio will pursue ideal packaging designs while improving
the efficiency and rationalization of the process of distribution from manufacturing to delivery to customers.

Casio Corporate Report 2006

Company Data

Since fiscal 2001, Casio has used a database to track thegross usage of packaging materials. Casio is taking action to

Before improvement (left) and after
improvement (right)

Casio and Society

Fiscal 2006 results■ Improved packaging boxes for page printers
The downsizing of products has resulted
in a 40% reduction in box volumes and a 37% reduction inpackaging boxes for accessories. In addition, Casio has
increased the shipping container load capacity from 78
to 162, thereby improving
transportation efficiency.

Casio and Employees

Action Policies of the Special Committee on Packaging[Main Objectives]
Volume reduction of packaging wastes is an important part ofenvironmental conservation activities for a sustainable society.
Casio’s key philosophy is that packaging that is gentle on theenvironment must be created, and that this is a responsibility thatcompanies should accept willingly.
[Policies]
1. Establishment, implementation and evaluation of action plansfor environmentally friendly packaging.
2. Support for development of environmentally friendly packaging,and sharing and utilization of technologies.
3. Compliance with laws and regulations of various countries
regarding environmentally friendly packaging.
4. Ascertainment of the total quantities of packaging materials
used by Casio.
5. Establishment of packaging quality guidelines.
[Operation]
The Special Committee on Packaging meets on a quarterly basis.
[Description of Actions]
1. Use of resource-saving materials and reclaimed resources: Useof reclaimed paper, non-wood paper and reclaimed plastics.
2. Reduction of packaging materials: Weight reductions and size
reductions
3. Safety of materials: Compliance with regulations concerning
hazardous substance contents.
4. Recyclability: Use of a single material, ease of disposal, compliance with regulations concerning package labeling.

■ Improved packaging for digital cameras
Previously, Casio had different specifications for packaging
boxes in and outside Japan. By adopting common specifications, the company reduced
For other countries
the usage of packaging
materials by 36% and box
volumes by 15%. The common specifications also
improved the efficiency ofCommon box
ordering packaging materials and packaging assembly.
For US and Japan

Casio andthe Global Environment● Special Committee on Packaging
The Committee establishes the Environmental Action Plans for
packaging (Plan), evaluates the results (Check), and reviews theplans (Action).

5.0

2,000

Casio and the Market

Casio’s organization for developing environmentally friendly
packaging consists of the Special Committee on Packaging
with the company’s Environmental Conservation Committee
and implementation organizations.

CSR Management

21.4

10,000Organization for Developing
Environmentally Friendly Packaging

CSR Highlights

Casio is working to develop optimal packaging designs fortransportation that are perfectly suited to specific products andthe method of distribution. These designs also aim to reduce
the amount of packaging that is ultimately disposed of, aiming
to realize packaging that is truly easy on the environment.
Specifically, Casio has been working to reduce the size
and weight of packaging by developing its construction andshape based on an understanding of product strength. Casio
has also quickly stepped up its use of recycled resources for
packaging and made its packaging easier to recycle.

reduce the usage of packaging materials per unit of sales by
30% by fiscal 2008 compared to fiscal 2001.
In fiscal 2006, the value of sales increased 3.8% from fiscal 2005 and gross usage of packaging materials increased
1.1%. Accordingly, usage of packaging materials per unit ofsales was 21.4 tons per billion yen, a decrease of 2.1% compared to fiscal 2005 and a decrease of 22.6% compared tofiscal 2001.

Corporate Profile

Policy on Developing Environmentally
Friendly Packaging

Casio and the Global Environment

Communication and Disclosure about
the Environment
Casio communicates actively with stakeholders to help build a sustainable society.

In August 2005, Casio held the CSR Report 2005 Reading
Session under the second Teacher’s Business Training
Program.
Normally, there are few opportunities for companies andschools to get together and talk. Accordingly, while participants examined some actual Casio Green Products forthemselves, Casio personnel gave a presentation on their
manufacturing process in order to provide a slightly deeper
understanding of Casio’s environmental activities. The
teacher’s remarks included interest in the Kids’ ISO 14000
program and environmental education as well as the factthat their social responsibility as educators is being
questioned nowadays.
Casio plans to continue toactively accommodate this typeof training.

Participation in Exhibitions(Eco-products 2005)

CSR Report 2005 Reading Session

Casio and Employees
Casio and Society

Casio renewed its website for Japan in March 2006 andworldwide website in June 2006. The website for Japan was
ranked seventh on the Usability Ranking sponsored by Nikkei
Personal Computing. This ranking evaluates user-friendlinessand design. The company’s Japanese environmental website
was also renewed, following the same pattern. Casio
uses its Environmental
Report website to publish
the latest Corporate Social
Responsibility Report.

Casio andthe Global Environment

Information on the Web

Casio and the Market

Casio has participated in the Eco-products Exhibition every
year since it started in 1999. The Eco-products Exhibition,
which is the largest general environmental exhibition in
Japan, is a place where people from different walks of life
can think about environmental issues and learn about ways torealize their own eco-lifestyles. Casio’s commitment topromoting environmental awareness extended even to theactual construction of its exhibition booth, which was made of
eco-materials (Eco-Palette Haru-Color / Moiss). The exhibition
was an opportunity for Casio to introduce its overall environmental initiatives while showcasing Casio Green Products—
eco-products that make use of Casio’s core competence incompact, lightweight, slim, energy efficient technologies. For
the 2005 exhibition, Casio planed a hands-on learning
experience for children, giving them the chance to practicebuilding a calculator. The company also introduced its
environmental initiatives using an easy-to-understand video
presentation on the main stage.
Casio plans to take part again in the Eco-products
2006 Exhibition.

CSR Management

Casio is making an effort to help build a sustainable society
by engaging in dialogue with various stakeholders. The
company is also aggressively undertaking environmental
conservation activities aimed at protecting biodiversity,
including humankind, and pursuing preservation of the
global environment, including natural resources andthe atmosphere.

CSR Highlights

CSR Report 2005 Reading Session
Held

Corporate Profile

Casio’s Philosophy and Policy on Communication
and Disclosure about the Environment

Eco-products panel
WebsiteEnvironmental Report website
http://world.casio.com/env/

Building a calculator

Major awards and commendations in fiscal 2006
Year
2005

2006

Month

Site

Award / commendation

June

Yamagata Casio Co., Ltd.

Yamagata Prefectural Governor’s award for excellencein promotion of environmental conservation

Yamagata Prefecture

June

Casio Micronics Co., Ltd.

Award of excellence for electrical safety and rationalization

Tama Electric Association

Award of excellence for rationalization of electrical use

Kanto Region Electricity Usage
Rationalization Committee

February

Casio Micronics Co., Ltd.
Hamura R&D Center

W56

Casio Corporate Report 2006

Awarding organization

Company Data

Eco-products 2005

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 basedon gender, disability, or other trait.

Regularly-scheduled hiring, by gender●Male ■Female(Casio Computer Co., Ltd.)

49
50
37

40
30

32

30

19

20

0

1

2

FY2001

FY2002610
1
0

FY2003

FY20042
FY2005

FY2006

Hiring persons with disabilities

Employment, by gender (Casio Computer Co., Ltd.)●Male ■Female
3,000
3,035

3,017

2,960

2,827

2,958

1,000

399

0

373

354

333

304

362

FY2001

FY2002

FY2003

FY2004

FY2005

FY2006

Average number of service years, by gender (Casio Computer Co., Ltd.)
14.4

15.1

9.8

10.2

FY2002

FY2003

16.0

16.3

16.6

11.4

12.0

11.1

FY2004

FY2005

FY2006

15

10
8.7
5

FY2001

Employees worldwide, by region (as of March 31, 2006)
Europe 4%

North America 2%

Asia 38%

Hiring senior workers
Total number of Casio group employees: 12,673

Employment-related initiatives

W57

Casio Corporate Report 2006

Company Data

Based on the philosophy and policies described above,
Casio respects every person’s human rights and individuality.
Casio hires individuals who are highly motivated to work,irrespective of their gender, creed, religion, ethnicity, social
status, or disability, while responding to changes in theenvironment that surrounds the labor market and society.
In Japan, Casio supports the Charter of Corporate Ethics
for Screening and Employing New Graduates issued by
Nippon Keidanren (Japan Business Federation), and helps tominimize the impact on students’ learning caused by themarket tendency to hire them at extremely early stages of thehiring season. In addition, Casio holds its interviews on
Saturdays or at other times that are convenient for students
so that more applicants will have the opportunity to beinterviewed. In fiscal 2006, Casio introduced the following
methods to promote more student-friendly recruitment:
seminars were held to deepen students’ understanding of theSince 2001, Casio has been operating the Casio Senior Staff
Program (CSP). Its purpose is to provide employees whoreach the mandatory retirement age with employment
opportunities, and to effectively utilize the skills and know-howthat these employees have accumulated within the group.
Under this program, employees who reach the retirement age
can register with the group’s personnel dispatch company.
The program is designed for retirement-age employees withthe desire to continue
Employment of senior workers
working, and who are(Casio Computer Co., Ltd.)
healthy and possess
12knowledge and skills that11
are needed within the group. 1098Starting in fiscal 2007, the8senior staff program has
6
6
been expanded to all group
44companies in Japan, and2
the opportunities for senior
employees are expected
0
FY2002 FY2003 FY2004 FY2005 FY2006
to increase.

Casio and Society

Recruitment Website for applicants with disabilities(Japanese-language)
http://www.casio.co.jp/saiyou/career2/policy.html

Japan 56%

Casio and Employees

15.2

Casio andthe Global Environment●Male ■Female
Years

Casio seeks to hire individuals with the courage, determination, and creativity to take on challenges and realize their
dreams, regardless of any disabilities they may have.
Presently there are 50 employees with disabilities working at
Casio Computer Co., Ltd. (1.27% of the workforce). However,in order to reach the legally required employment level of
1.8% as soon as possible, a five-year plan was established forthe hiring of persons with disabilities. In fiscal 2006, Casio
actively promoted activities for sensitivity awareness, including
workplace training. Consequently, six persons with disabilities
were hired and joined the company in the spring of 2006.
Casio is also improving its workplace facilities to enableeach and every employee to maximize their abilities andaptitude. Examples of such work include the creation ofaccessible lavatories at both the Hamura R&D Center and theHachioji R&D Center, as well as measures to allow employeeswith disabilities to commute by car to work. Casio will continue
to hire persons with disabilities and promote the creation of awork environment that is suitable for everyone to work in.

Casio and the Market

3,008
2,000

CSR Management

10

CSR Highlights

The Casio Code of Conduct states that, “We respect others
and value cooperation that is free of discrimination. We holdin high regard every individual’s human rights, eliminate
harassment, remarks and behaviors that are discriminatory on
the basis of gender, beliefs, religion, ethnicity, social status orphysical 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 and strives tocreate as many employment opportunities as possible.
Casio has also been working to secure jobs internally bybringing in work that had previously been contracted tocompanies outside the group.

working world; the Casio recruitment Website was updatedwith more content; hiring for specific job types was increased,
and interviews were held in various regions. As a result, hiringof women grew dramatically. Casio hired 66 new graduates,
including 13 women, who joined the company in the spring of
2006. In addition, eight mid-career professionals were hired,including two women.

Corporate Profile

Employment Philosophy and Policies

Casio and Employees

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

Off-JT

Staff
Entry-level

CareerDevelopment
Training

OJT-MAP
Follow-up Training
New Employee
Training

Mentor for New Employee

W58

Casio Corporate Report 2006

Patent Award System

Techno Power / President’s Award

Assistant Manager
Candidate Training

Sales Training System for Engineers

Assistant Manager
Career Training

Skill Selective Training

Job Posting System

Career Challenge System

Career Roadmap

Development
Evaluation
SystemCareer Challenge: Advanced

Senior Staff

Assessment of Job PerformanceSupervisor

New Manager
Training

Company Data

AssistantManager

Multi
Evaluation
System forManagers

Section Manager
Career Training

Chief
Rank 1EngineerAwardsystemOther

Training for Each Department / Professional Ability

Department Manager
Career Training

Skill
selective
training

Casio and Society

DivisionManager
Consulting Rank 4
Engineer
Department
Manager
Rank 3
SeniorEngineer
SectionManager
Advisory Rank 2
Engineer

Training forTraining for
Selected Employees Specific Job Grade

Advanced Technology Seminars / Language Training / Correspondence Education

Measures forproper placement

Casio and Employees

OJT
Measures to train
existing workers tomake them professionals

Casio andthe Global Environment

Organization of Casio’s human resources system

Casio and the Market

Casio’s human resource system consists of threesubsystems: the Grade System, Appraisal System andCompensation System.
The Grade System forms the base of Casio’s humanresource system. The Qualification System applies to nonmanagerial employees, who are promoted based on thegrowth of their ability to perform their duties. The Professional
System applies to managers and specialists, who are graded
and ranked based on their individual functions andaccomplishments.
In the Appraisal System, employees are evaluated inthree areas, namely, target achievement under management

Casio has various programs for human resource developmentwith the intention of developing creative employees that are
eager to take on challenges and training professionals withearly tracking into specialized fields.
There are two basic types of employee professionals at
Casio. One is the strategic generalist that passes on thecompany’s corporate culture. The other is the technicalspecialist 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 drive. Based on this belief,
Casio supports its employees to grow and improve their 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 supplementarytraining programs, including systematic study of theory, arealso offered as off-the-job training (Off-JT).

CSR Management

Human resource system

Human resource development

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 the abilities required for their position,
irrespective of their academic background, age, or length ofservice. To complement this, Casio’s performance-based
approach determines the grade and compensation of
employees based on the results they actually achieve in theirassigned roles. The objective of Casio’s human resource
system is to strike an optimal balance between the development of employees under the merit-driven system, and thegrowth of the company that is facilitated by the performancebased 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 with each
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 withperformance evaluation and salary levels. Bonuses are
distributed in a balanced way, depending on the evaluation.

Corporate Profile

Philosophy and Policies

Casio and Employees

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

(Casio Computer Co., Ltd.)

35

31
28

30

16
15

19

19

20

15

10
5
0

FY2001 FY2002 FY2003 FY2004 FY2005 FY2006

Communication between Labor andManagement
Through regular communication between management andthe labor union, Casio hopes to raise the awareness of
W59

Action Plan: April 1, 2005 to March 31, 2007
Target 1: To create an environment that encourages
employees to utilize vacation time.
Target 2: To create an environment that permits
employees to take time off for child or familycare (leave time or shorter working hours).
Target 3: To enable workers returning from childcare
leave to be reintegrated smoothly.
Target 4: To construct a system that reflects the opinionsof employees on this action plan.
In fiscal 2006, Casio promoted the taking of planned paidvacation in order to improve vacation time utilization rates.
The company also worked on improvements that reflect
employee needs. Under the shorter working hours system for
employees with childcare needs, the eligibility was extended
to the time that the employee’s child starts elementary school.
Time off was also expanded for fathers at the time of theirchild’s birth, and for maternity protection.
In fiscal 2007, Casio aims to further expand the leavesystem based on a dialogue with all employees. The
company plans to design systems that take into accountemployee needs, to post information for employees on theWeb, and to educate all managers about support for fostering
the next generation.
Casio Corporate Report 2006

Company Data

25

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 Law Concerning the Promotionof Measures to Aid the Nurturing of the Next Generation ofChildren in April 2005, Casio set up the Special Committee on
Measures to Aid the Nurturing of the Next Generation ofChildren, in order to further help employees achieve abalance between work and family life. The committee has
established the action plan shown below.

Casio and Society

Employees taking child care leave

Report by the Special Committee on Measures to Aid the
Nurturing of the Next Generation of Children

Casio and Employees

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 the environment.
In addition, the Rules Concerning Nursing Care Leave coveremployees who have a family member requiring care. These
rules also have been revised as necessary since theirestablishment in 1999.

Continued support for achieving a balance
between work and family

Casio andthe Global Environment

Child and nursing care leave

Building a Supportive Work
Environment

Casio and the Market

With 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 2006, an average of 21.9 paid vacation days
were offered to each employee at Casio Computer Co., Ltd.,and 58.4% of these days were utilized. The average numberof paid vacation days taken was 10.4 full days and 4.8
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, partof 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.

CSR Management

Vacations

CSR Highlights

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 andother family members, with special consideration forfemale employees.

employees about their right to participate in the managementof 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 isheld 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.
At the end of fiscal 2006, 4,641 of the 7,135 employees of
Casio Computer Co., Ltd., and its domestic group companies
were members of the labor union.

Corporate Profile

Policies on Building Positive Work
Environments

Casio and Employees

Efforts on Occupational Safety and Health
Casio is taking various steps to maintain and enhance employee health and prevent occupational injuries.

Casio Corporate Report 2006

Company Data

Casio has been working to achieve zero occupational injuries
and is engaged in safety activities targeting an accident-freerecord at all Casio work sites. In addition, each site and groupcompany conducts fire and disaster prevention/evacuation
drills, as well as automated external defibrillator (AED) classes
to ensure emergency preparedness.
On September 12, 2005, a disaster and fire drill was heldat headquarters involving over 200 participants—not only thecompany’s volunteer fire brigade, but also other employees.
The drill began with practicing measures for physicalprotection from the initial effects of an earthquake, followedby reporting, fire extinguishing, and evacuation guidance inthe event of street evacuation on foot from all floors of thebuilding. The drill continued with simulation of safety
protection measures, evacuation from the building by firetruck ladders, spraying water on the fire by the fire brigade
and pump trucks, and emergency medical treatment.
AEDs were incorpoTime off due to occupational
rated into Casio’s
injuries (last five years)
Regular Lifesaving
Number of
Seminar on March 1,
employees Number of days
2006. The devices have
FY200200been installed at the
FY2003
1
73
head office and theHachioji R&D Center,
FY200400
and will soon be made
FY200500available at all sites and
FY20063
13
group companies.

Casio and Society

W60

Prevention of occupational injuries

Casio and Employees

Casio offers annual physical checkups to all employees. The
company is working to increase the number of items coveredby the checkups, and also emphasizes the importance of
secondary checkups and other follow-up.
There is a clinic (internal medicine and dentistry) at theheadquarters of Casio Computer Co., Ltd., and other major
Casio sites, each one staffed by a full-time doctor who looks
after the health of Casio employees. In July 2005, 924 annual
physical checkups were conducted at Casio headquarters,
representing a 100% participation rate by headquarters
employees.
Casio held aWalking Campaign tohelp maintain andenhance employee
health as well as prevent
lifestyle-related diseases. The campaign
was run at various
locations between
September andNovember 2005, andWellness Fairs● Manager Seminars to Promote HealthA special seminar for managers entitled, “Promotion of Healthand the Role of Supervisors,” was held at the head office in
May 2004, at the Hamura R&D Center in November 2004, andat the Hachioji R&D Center in June 2005.
With many managers in attendance, the occupational
health physician from the head office clinic gave a lecture,systematically covering diverse subjects, including physicalcheckups, taking steps to be healthy, overwork and healthproblems, duty to pay attention to safety, and mental health.
In particular, the doctor stressed the role that supervisors
should play in the health management of workers.

Casio andthe Global Environment

Promotion of employee health

In 2000, Japan’s Ministry of Health, Labour and Welfare issued
a publication entitled, Guidelines for Promoting Mental HealthCare in Enterprises. Through the holding of special seminars
for managers, Casio is trying to raise the awareness of mental
health issues throughout the company. Employees can also
discuss their personal health concerns at the company clinics,
or by using the external Physical and Mental Health Hotline.

Casio and the Market

The Casio Occupational Safety and Health Committee wasestablished in accordance with Japan’s Industrial Safety and
Health Law. Meeting on a monthly basis, the committee iscomprised of the company physician, occupational healthmanagers, and representatives of labor and management.
It promotes various measures to keep employees physicallyand mentally healthy and to ensure occupational safety. In
fiscal 2006, the committee advanced the creation of acomfortable workplace promotion plan, based on the
Guidelines for Measures to Be Taken by Employers for theCreation of Comfortable Working Environments, issued by
Japan’s Ministry of Health, Labour and Welfare. On January
25, 2006, the Casio headquarters received approval as a
Comfortable Workplace Plan Promoter, and these measures
are now being implemented.
In order to further promote occupational health education
and activities, Casio is training occupational health managers.
At the Hamura R&D Center and the Hachioji R&D Center,
Casio is implementing various safety policies through regularmeetings of the Occupational Safety and Health Committees.
Just like at the group companies, regular physical examinations are provided to employees, and health management isalso promoted by holding mental health seminars.

Mental health care
CSR Management

Activities of the Occupational Safety and
Health Committee

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 offering anenvironment that ensures employees can work with peace ofmind. Casio works to maintain and enhance employee healthand to prevent occupational injuries and their recurrence.
Similar measures have been adopted at overseas groupcompanies in compliance with the national laws and regulations concerned.

many people participated, including employees’ family
members. Casio has also signed an agreement with a fitnessclub, providing additional opportunities for employees toimprove their health.
Casio is striving to raise the awareness of employees
about oral hygiene. A column entitled, “Diseases Originate in
the Mouth,” written by the dentist at the head office clinic, ispublished regularly on the company’s internal Website. In
order to improve and prevent lifestyle-related diseases andobesity, the employee cafeterias provide healthy menu
choices featuring a balance of calories and nutrition.
Wellness Fairs are also held at all Casio sites.

Corporate Profile

Basic Philosophy

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.

Visit to Hatashiro Elementary School

Casio and the Market
Casio andthe Global Environment
Casio and Employees

On February 10, 2006, the General Manager of theEnvironment Center of Casio Computer, Co., Ltd., visited
fifth-graders at Hatashiro Elementary School in Shibuya-ku,
Tokyo. He went as a guest teacher to talk about Casio’s
efforts to help stop global warming. He spoke to 90 students
in three classes.
After a video presentation on environmental activities, heexplained the mechanisms behind global warming and thespecific environmental efforts being made on products anddistribution at various Casio sites. This was followed by an
opportunity to ask questions. The students enjoyed thepresentation immensely. They were particularly interested in
the samples of eco-products shown to them, such as digital
cameras and solar-powered radio-controlled watches thatexemplify Casio’s compact, lightweight, slim, energy efficienttechnology. The students were all amazed by, and expressed
their admiration for the products, and continued to ask
questions even when the class was over.
Although global warming is a complex issue, Casio heard
from the students’ teachers that the kids were still talking
about the presentation for days afterwards. Casio hopes thatthe youngsters are now taking steps individually and with
their families to help prevent global warming.

CSR Management

Casio and Society

Contribution to Local Communities

Support for comprehensive studies classes:

CSR Highlights

Based on its corporate creed of “Creativity and Contribution,”
Casio seeks to contribute to society by creating products thatprovide people with joy and wonder.
Casio also leverages its proprietary know-how andmanagement resources for the betterment of society. Casio
uses its core competence in compact, lightweight, slim,
energy efficient technologies to make unique contributions
that no other company can.
Rather than merely performing indirect activities such asproviding donations, another important channel of social
contribution for Casio is to offer the knowledge andexperience of its employees to society.
Through communication with various stakeholders, Casio
is constantly assessing its responsibilities as a good
corporate citizen. Casio is also aware of the importance of
establishing its own creative social contribution initiatives tofulfill its responsibilities. The company is currently working toenhance its current range of CSR activities.
Casio continues to dedicate itself to social contribution
initiatives in five key areas: (1) environmental conservation toprotect irreplaceable global resources and the environment;(2) education to fulfill Casio’s responsibility to the next
generation who are the future leaders of the world; (3) culture
and arts to provide people with joy and wonder; (4) study andresearch that contribute to the development of the cuttingedge science and technology that are indispensable forsociety to grow; and (5) community activities to be a usefulmember of local society.
Casio plans to continue improving its social contribution
initiatives by, for instance, developing mechanisms that focus
the entire group’s efforts, and making them known to the
public in an appropriate way.

Casio is actively promoting this kind of social contribution
initiative for local communities, while providing places foryouth to learn resiliency for a meaningful life, and to practiceself-reliance and independence. These activities havereceived the appreciated of the public. Currently, Casio hasreceived requests for classroom visits and factory tours frommany educational institutions around the nation of Japan, andCasio is now preparing to undertake these activities andmake other new efforts. By maintaining close ties with local
communities, Casio is working hard to foster the society of the
future, through both economic development and protection of
the global environment. Teaching resiliency for a meaningful
life to young people forms the foundation of these efforts.

Corporate Profile

Philosophy on Social Contribution

Educational activities with the Tokyo Bureau
of Environment

W61

Company Data

As an effective policy for environmental education andmeasures against global warming, the Tokyo Metropolitan
Government has been promoting the Kids’ ISO 14000
Program, developed by ArTech. Already, 8,700 Tokyo
children are taking part in the program. As a participatingcompany, Casio Computer Co., Ltd., is sending employeeswith instructor certification to actively participate in the
program, and is developing a wide range of activities. In
fiscal 2006, based on a request from the Tokyo Bureau ofEnvironment, Casio made case-study presentations to
educators and company officials responsible for CSR in theTokyo area. In the presentations, along with activities todeepen understanding of the Kids’ ISO 14000 Program,Casio undertook part of an environmental education leader
follow-up course, and provided a seminar on the importanceof educational activities for children and Casio’s local
educational initiatives.

School visit by Casio

The clover “”symbol indicates disclosure and communication activities in the area of social contribution.

Casio Corporate Report 2006

Casio and Society

Number of grants

49,80040

55,6404237

Total amount of grants awarded

50,74050,40040

Unit: ¥1000
60,00044

50,00050,00039

40,00030
30,00020
20,00010

10,0000
19th year(FY2002)

20th year(FY2003)

21st year(FY2004)

22nd year(FY2005)

23rd year(FY2006)

Website of the Casio Science Promotion Foundation(Japanese-language)
http://www.casio.co.jp/company/zaidan
Casio Corporate Report 2006

Company Data

Unit: Number of grants
50

Casio and Society

Number and amount of research grants awarded by
Casio Science Promotion Foundation

Casio and Employees

Basic research forms the foundation for science andtechnology. The new principles discovered in the realm ofbasic research often end up having an enormous impact on
the wider world. However, since basic research does notproduce any immediate profits, researchers are often
supported by limited budgets from the government oruniversities. The Casio Science Promotion Foundation isproviding funding for this type of research and thereby
contributing to the advancement of science and technology.
The Casio Science Promotion Foundation was establishedin 1982 by the four Kashio brothers, and the late former
chairman, Shigeru Kashio, to contribute to the growth andpromotion of academic research in Japan. The foundation’s
main focus is on assisting cutting-edge, creative research in
the early stages conducted by younger researchers. Every
year, assistance is given to approximately 40 projects. In
addition, approximately 10 grants are awarded to send
researchers abroad and 10 more to host research meetings.
In fiscal 2006, 44 research projects received grants,
totaling ¥50 million. The recipients included Professor
Takeyoshi Dohi of the University of Tokyo, Professor Michio
Umino of Tohoku University, and Professor Yasufumi Fujiwaraof Osaka University. The grants were awarded to therecipients at the 23rd presentation ceremony held on
December 2, 2005.

Casio andthe Global Environment

W62

Fostering young science andtechnology researchers—Casio Science
Promotion Foundation—

Casio and the Market

The CASIO WORLD OPEN GOLF TOURNAMENT has been
held since 1981, part of Casio’s social contribution
through sport
Starting in 2005, the location of the tournament was
switched to the Kochi Kuroshio Country Club in Kochi
Prefecture, Japan—the birthplace of Casio’s founder andwhere Casio has a major manufacturing subsidiary. In order
to convey the enjoyment of golf to a wider range of people,
the CASIO WORLD OPEN invited Michelle Wie, the young
female golf phenomenon with worldwide fans, to her first
tournament in Japan. Although she played on weekdays,
huge crowds filled the gallery in order to see her perform, andthere were also large contingents from the Japanese andinternational mass media. Although Michelle Wie just narrowly
missed making it to the weekend championship round by one
shot, many fans were impressed by the sight of her battling
against the top male players.
Casio is making various contributions to the people of
Kochi Prefecture, which hosted the tournament.
Casio Computer Co., Ltd., donated digital cameras to the
local government organizations that helped with the hostingof the golf tournament. A special golf lesson area was also set
up for golfers from the tournament to give pointers to local
youth on the proper golf swing. In addition, Casio worked withlocal elementary schools to provide students with a guided
tour of the backstage
sites of the tournamentthat are usually closed
to the public, including
the press conference
area and the television
broadcast facilities. In
order to help promote
sport among the local
Local youth receiving golf lessons
residents, Casio used

Contribution to Civic Society

CSR Management

CASIO WORLD OPEN GOLF TOURNAMENTCSR Highlights

Every April 28, the Shibuya-ku
ward office holds a generalcleanup in order to help
beautify the district, with theparticipation of residents andbusinesses in this area ofTokyo. In fiscal 2006, theheadquarters of Casio
Computer Co., Ltd., pitched in
Cleanup around the head office building
to help clean up and restore
the appearance of the local neighborhood.
Although participation was purely voluntary, 25 head
office employees from all departments showed up on thatday. In just 30 minutes, the participants were able to gather
up a large amount of garbage from around the head
office building.
Starting in fiscal 2006, staff from the Hamura R&D Center
began participating in a regular volunteer cleanup activity at
the nearest station, JR Ozaku. The employees at Casio
Micronics (Ome) also carry out regular cleanup activities intheir neighborhood. Casio will continue to actively participate
in this kind of community activity whenever possible, at all
Casio sites.

the charity proceeds raised during the tournament topurchase sporting equipment and donated it to localorganizations that serve the welfare of the community.
Casio plans to hold the same kind of tournament infiscal 2007, with the goal of benefiting the people of thelocal community.

Corporate Profile

Beautification and cleanup in thesurrounding community

Casio and Society

Social Contribution Initiatives

hands-on activities rather than just classroom learning. Casio
will apply the feedback in planning next year’s activities.

Supporting the Teacher’s BusinessTraining Program

Casio Corporate Report 2006

Company Data

World Children's Baseball Fair

Casio and Society

W63

Since 1992, Casio Computer Co., Ltd., has been supporting
the World Children’s Baseball Fair, which seeks to promote
friendship among the world’s youth.
The baseball fair was initially proposed by Hank Aaron
and Sadaharu Oh, home-run kings of the US and Japan. With
the goals of promoting the spirit of baseball the world overand increasing international friendships between children, thefirst World Children’s Baseball Fair was held in Los Angeles in1990. Since then, around 250 boys and girls from 20 countries worldwide have participated in the event with great
enthusiasm every year.
In 2005, the 16th annual baseball fair was held in Gunma
Prefecture from July 28 to August 5. Baseball workshops
were held in addition to cultural exchange activities with local
children, thereby fostering international friendship.
The promotion of the sporting spirit has become
increasingly important for the sound development of youth
and the effective utilization of their leisure time.
Through the sport of baseball, children can learn tounderstand eachother better. By
supporting thisbaseball fair that
fosters friendship,
Casio is contributing
to the sound development of young
people.

Casio and Employees

The clover “” symbol indicates disclosure and communication activities
in the area of social contribution.

Support for the World Children’s Baseball Fair

Casio andthe Global Environment

This year Casio once again participated in the Teacher’s
Business Training Program, sponsored by the Keizai Koho
Center (Japan Institute for Social and Economic Affairs), in
order to promote communication between the worlds ofbusiness and education.
This program provides elementary, junior high and highschool teachers an opportunity to experience corporate
activities and share their experience and what they learned
with students in the classroom. Started in 1983, the program
places teachers with participating corporations during theirsummer breaks. In recent years there has been increasing
interest in this kind of training in the education sector. The
business sector and the general public have also become
interested in companies’ cooperative effort to provide training
for teachers, as a way to fulfill their CSR.
During a three-day training course from August 3 to 5,
2005, Casio welcomed seven elementary and middle school
teachers from Tokyo and Hyogo Prefecture. It marked Casio’s
second consecutive year of participation in the Teachers’
Business Training Program.
The teachers received training from frontline employee
instructors at the Casio head office and the Hachioji R&D
Center. The course also included a lively exchange of
opinions and ended as a complete success.
The teachers who participated were surprised at the way
a private company like Casio is putting its energy into
environmental activities, while pursuing its business withgoals and dreams. They werevery pleased with what theylearned in just three days,
saying that they would apply
this new knowledge in theclassroom. The participantsalso expressed a desire to hearfrom female managers at Casio
next time, and to do more
Program for teachers

The Casio Monetary Fund Committee for Peking University
Japan Study has been established by Casio (Shanghai) Co.,
Ltd., in cooperation with Peking University, China’s premierinstitution for education and research relating to Japanesestudies. The goal of this fund is to support the ongoing
improvement of the research and educational level for studies
in Japanese language, literature, and culture.
The fund awards one-time scholarships to students withexcellent academic results in Peking University’s foreignlanguage program for Japanese language or cultural studies
and professors who have published outstanding academic
papers or research. The awards are designed to further
promote research in this field.
On November 9, 2005, aceremony was held to commemorate
both the founding of the fund and toaward the first scholarships. The
scholarships were presented to three
students and five professors.
Scholarship award ceremony

Casio and the Market

G-SHOCK model to support theDolphin & Whale Eco-Research
Network

Casio Monetary Fund Committee for
Peking University Japan Study

CSR Management* Joint exhibit with Japan Environmental
Action Network (JEAN), from August 1
to 31, 2005.

Contribution to the International
Community

CSR Highlights

Since the International Dolphin and Whale Conference held in
1994, Casio Computer Co., Ltd., has 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 2005, thecompany participated in the Fifth Dolphin & Whale EcoResearch Network Project., Casio provided support for the
I.C.E.R.C. exhibit* at Expo 2005 Aichi, Japan, (NGO Global
Village) and the realization of better dolphin and whale
watching activities in Japan.
Casio is also promoting public awareness of I.C.E.R.C.
activities by setting up a dolphin
and whale display at the
Cetacean, Casio’s pilot retailshop in Odaiba, Tokyo, and bysending out the organization’s
free paper to the retail stores of
Casio Distribution.

Corporate Profile

Supporting the Fifth Dolphin & Whale
Eco-Research Network ProjectCasio and Society

Ching Ling Foundation was invited to visit Japan in October
2005. As part of this activity, a special China-Japan (Casioand Soong Ching Ling Foundation) keyboard concert washeld at the Casio headquarters. The concert featured 10groups of children aged 9 to 18, who performed solo and in
ensembles. The delegation also included a reporter from thePeople’s Daily of China, and this cultural exchange was
widely reported throughout that country.

Casio has been supporting the Nationwide Youth Keyboard
Contest in China since the Soong Ching Ling Foundation* firstestablished the contest in 1986. To commemorate almost 20
years of support by Casio, a delegation from the keyboard
contest including Vice Chairman Chi Liqun of the Soong

CSR Highlights* With the goal of helping underprivileged children across China, the Soong Ching Ling Foundation was established by the wife of Sun
Yat-sen, Soong Ching Ling, also famous as one of the three Soong Sisters in Japan. The organization is highly respected by the generalpublic and the government for its activities, which have produced many outstanding instructors and students across China.

Corporate Profile

Sponsoring the Nationwide Youth Keyboard
Contest in China

Major social contribution initiatives in fiscal 2006

Socialeducation

Casio Information
Systems Co., Ltd.

Hosting interns

As part of occupational education activities, actively participated inplanning as a corporate participant in university internship programs andhosted 21 interns in fiscal 2006.

Kochi Casio Co., Ltd.

Company tours

Provided company tours for 281 students from 16 schools in fiscal 2006, aspart of comprehensive studies classes and school excursions.

Casio Computer
Co., Ltd.

Classroom visits

Visited Fuchu Dai 4 Elementary School, and gave presentations to about
100 students, teachers, and parents concerning the fun and difficulty ofcreating products.

Casio Computer
Co., Ltd.

Cleanup Day

In fiscal 2006, 140 employees participated in the twice yearly cleaning of
the areas around a company site, and the route between the site andnearby Higashi Hanawa station.

Kofu Casio Co., Ltd.

Beautiful Yamagata andMogami River Forum

Cooperating with the local people, NPOs, universities, and government
agencies to support cherry tree planting and maintenance along
Mogami River.

Yamagata Casio
Co., Ltd.

Nikkei Education Challenge 2005

Support for the Nihon Keizai Shimbun’s high school education program in
economics and industry. Dispatch of employee instructors.

Casio Computer
Co., Ltd.

Participation in blood donation drive

In fiscal 2006, 189 employees at the head office and 264 employees at the
Casio Group
Hamura R&D Center participated.

Jobs offered to physically or mentally disabled
persons

Product disassembly, parts sorting and other types of light work are offered
on a contract basis.

Casio TechnoCo., Ltd.

Training students as part ofuniversity programs

Providing practical training to students as part of university programs (fortwo or three months). About ten students per year receive practical training
at Casio (Thailand).

Casio (Thailand)Co., Ltd.

Training local high school students

Occasionally some local high school students are provided work
experience at Pt. Asahi Electronics Indonesia.

Pt. Asahi Electronics
Indonesia

International
community

Civic society

Environment

Socialeducation

WelfareSocialeducation

The clover “” symbol indicates disclosure and communication activities in the area of social contribution.

Major donations in fiscal 2006
Donation recipient

Implementing organization

Support for the “Think the Earth Project” FY2006

Think the Earth Project (NPO)

Casio Computer Co., Ltd.

Donation to the Japan Industrial Waste Management Foundation

Japan Industrial Waste Management Foundation

Casio Computer Co., Ltd.

Donation to the Keidanren Nature Conservation Fund

Keidanren Nature Conservation Fund

Casio Computer Co., Ltd.

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

WWF Japan (NGO)

Casio Computer Co., Ltd.

Support for the International University of Japan

International University of Japan

Casio Computer Co., Ltd.

Scholarship provision

Costco Scholarship Fund

Casio, Inc.

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 Fruit Nation Higashine - Cherry Marathon

City of Higashine

Yamagata Casio Co., Ltd.

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

City of Hamura

Casio Computer Co., Ltd.

Contribution to the victims of Hurricane Katrina

Japanese Red Cross Society, etc.

Casio Group

Contribution to the victims of the Pakistan earthquake

Japanese Red Cross Society

Casio GroupInternational exchange /cooperation

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.

Social welfare

Donation to the fund for rehabilitation of disabled persons

A FUND FOR REHABILITATION OF DISABLE PERSONS

Casio (Thailand) Co., Ltd.

Donation to the Japanese Foundation for Cancer Research

Japanese Foundation for Cancer Research

Casio Computer Co., Ltd.

Support for PH-Japan

PH-Japan (NPO)

Casio Computer Co., Ltd.

Environment

Education
Culture and arts
Local
communities
Disaster relief

Healthcare

W64

Casio Corporate Report 2006

Company Data

Project title

Category

Casio and Society

Implementing organization

Street activities during the national traffic safety weeks in the spring
and the fall.

Casio and Employees

Content

Cooperation with a traffic safety campaign

Casio andthe Global Environment

Theme

Casio and the Market

Local communities

Traffic safety

CSR Management

Category

Company Data

Casio Network

Sites outside Japan (as of Sept. 30, 2006)

In order to deliver products to customers in all parts of theworld, Casio has development, manufacturing, and sales
centers across the globe with a focus on four major
regions: Japan, North America, Europe, and Asia (excluding Japan). R&D and electronic component manufacturing
are performed in Japan, while other manufacturing facilities are located mainly in other parts of Asia. As foroverseas sales, Casio, Inc., handles the North American
market, while Casio Electronics Co., Ltd., Casio Europe
GmbH, Casio France S.A., Casio Benelux B.V., Casio
Scandinavia AS, and Casio Espana S.L., handle Europeansales. In other regions, distributors have been set up to
handle direct and indirect exports to these markets.

Casio Europe GmbH
Casio Scandinavia AS

Casio Benelux B.V.
Casio Espana S.L.
Casio France S.A.

CSR Highlights

Sales, by region(FY2006)
Asia and other
16.8%

Overseas
40.6%

CSR Management

North America
10.2%

Corporate Profile

Casio Electronics Co., Ltd.

Japan
59.4%

Europe13.6%

Casio and the Market
Casio andthe Global Environment

Sites in Japan (as of Sept. 30, 2006)

Casio and Employees

Casio Computer Co., Ltd. - Headquarters
Casio Computer Co., Ltd. - Hamura Research & Development Center
Casio Computer Co., Ltd. - Hachioji Research & Development Center
Casio Techno Co., Ltd.
Casio Micronics Co., Ltd.
Casio Information Systems Co., Ltd.

Casio Electronic Manufacturing Co., Ltd.

Shin Nihon Casio Information Co., Ltd.

Kochi Casio Co., Ltd.

Kofu Casio Co., Ltd.
SEIYO Electronics Corporation

W65

Casio Corporate Report 2006

Company Data

Casio Electronic Devices Co., Ltd.
Casio Soft Co., Ltd.
Casio Support System Co., Ltd.
Casio Hitachi Mobile Communications Co., Ltd.
Casio Communication Brains, Inc.
Casio Entertainment, Inc.
Casio Marketing, Inc.
Casio I-net Solution Co., Ltd.
Casio Business Services Co., Ltd.
Mas Inc.
Photohighway Japan Co., Ltd.

Casio and Society

Yamagata Casio Co., Ltd.

Company Data

Sites outside Japan (as of Sept. 30, 2006)

Corporate Profile

Casio Korea Co., Ltd.
Casio, Inc.
Casio (Shanghai) Co., Ltd.

Casio Canada Ltd.
CSR Highlights

Casio Taiwan Co., Ltd.
Casio Electronics (Shenzhen) Co., Ltd.
Casio Computer (Hong Kong) Ltd.
Casio Electronic Technology (Zhongshan) Co., Ltd.
Casio Electronics (Guangzhou) Co., Ltd.

CSR Management

Casio Singapore Pte., Ltd.

Casio and the Market

Casio (Thailand) Co., Ltd.
Casio India Co., Pvt., Ltd.

Consolidated business results

Net income (Unit: ¥ million)

Net sales (Unit: ¥ million)

600,000
500,000

523,528

559,006

580,30925,00023,745
21,53420,000440,567

400,000

14,17615,000

Casio and Employees

Paid-in capital: ¥41,549 million
Employees:
3,320 (non-consolidated)
12,673 (consolidated)
Consolidated companies: Subsidiaries (Japan and overseas) 56
Equity-method affiliates (Japan andOverseas) 4

Name:
Casio Computer Co., Ltd.
Established:
June 1, 1957
Headquarters:
1-6-2 Hon-machi, Shibuya-ku, Tokyo
President & CEO: Kazuo Kashio

Casio andthe Global Environment

Data on Casio Computer Co., Ltd. (as of March 31, 2006)

300,000
5,000

100,000
00
FY2003

FY2004

FY2005

FY2006

Total assets (Unit: ¥ million)

FY2005495,743
21,534

191,011
162,271

501,960

150,000

14,176

131,957

144,403

100,000

200,000

50,0005,647

FY2003

FY2006Company Data459,113300,000

0

FY2004200,000
496,039

400,000

100,000

FY2003

Shareholders’ equity (Unit: ¥ million)

600,000
500,000

5,647

FY2004

FY2005

FY2006

Capital investment (Unit: ¥ million)

0

FY2003

FY2004

FY2005

FY2006

12,14012,673

FY2005

FY2006

Employees (Unit: persons)

15,00025,00019,711

20,00016,213

12,00017,782

11,481

11,637

FY2003

FY20049,000

15,00011,16810,000

6,000

5,000

3,000

0

FY2003

FY2004

FY2005

FY2006

W66

Casio and Society

10,000200,000

0

Casio Corporate Report 2006

Company Data
Social Recognition■ Major Awards and Commendations in Fiscal 2006
Year

2005

June

Award or Commendation
Yamagata Prefectural Governor's Award for Excellence
Yamagata Casio Co., Ltd. in Promotion of Environmental Conservation

June

Casio Micronics Co., Ltd.

Month

December
2006

February

Award of Excellence for Electrical Safety and Rationalization
Promotion
Yamagata Casio Co., Ltd. Grand Prize of the 2nd Nikkei Monozukuri Grand-prix
Ome Labor Standards Bureau Chief Award
Hamura R&D Center
Annual Quality Management Activity Award: Outstanding
Kofu Casio Co., Ltd.
Production Site
Casio Micronics Co., Ltd.
Award for Excellence in Activities to Reduce Electricity Use
Hamura R&D Center

Awarding Organization
Yamagata Prefecture
Tama Electric Association
Nihon Keizai Shimbun, Inc.
Ome Labor Standards Bureau
Yamanashi Prefecture Quality
Management Research Council
Kanto Region Electricity Usage
Rationalization Committee

Corporate Profile

OctoberNovember

Site

Scope of the Report

Number of sites
1
2
1
2
1

■ Electronics Segment

Company Data

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

Casio and Society

Company 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 Electronics (Guangzhou) Co., Ltd.
Casio (Shanghai) Co., Ltd.
Casio (Thailand) Co., Ltd.
Casio Singapore Pte., Ltd.
Pt. Asahi Electronics Indonesia
Casio India Co., Pvt. Ltd.
Casio, Inc.
Casio Canada Ltd.
Casio Europe GmbH
Casio Electronics Co., Ltd.
Casio France S.A.
Casio Electronics (Zhuhai) Co., Ltd.
Casio Electronics (Zhongshan) Co., Ltd.

Number of sites
1
1
1
2
1
1
1
1
1
5
1
1
1
1
1
1

* These sites are included in the report only with respect to their environmental
conservation cost and economic impact.

●Topics Reported
This 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).
W67

Casio and Employees

Overseas Group Companies

Company 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
CCP Co., Ltd.

Casio andthe Global Environment

Company 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.*■ Electronics Segment

Casio and the Market■ Electronic Components Segment

CSR Management

Group Companies in JapanCSR Highlights●Reporting Period
The Casio Corporate Report 2006 provides a general summary of the business and CSR activities of the worldwide Casio Groupof companies in fiscal 2006 (from April 1, 2005 to March 31, 2006). However, some important reporting on the Casio organizational structure and products contains information from fiscal 2007.
●Business Units Covered by the Report
The following table shows the scope of environmental accounting and that of environmental impact data compilation and description. Please note that any reference made to “Casio” in this report indicates the Casio Group, while “Casio Computer Co., Ltd.”
refers only to the parent company.

Casio Corporate Report 2006

Independent Opinion

Outside Opinion on the Casio Corporate Report 2006
The following opinion was written based on the content of this report. In the area of corporate social responsibility,
Casio has begun to promote the PDCA (plan, do, check, action) management cycle for a wide range of issues,
such as reducing environmental impact and encouraging suppliers to take similar efforts.

Commendable Efforts by Casio

CSR Management

Preparation of an EHS Foundation

The greater than expected increase in production anddecrease in costs for the Electronic Components
segment had a major impact on the achievement of
Casio’s environmental targets. Therefore, Casio is now
making a priority of setting targets for each electronic
component production site, while clarifying the achievement plans and individual measures, in order to facilitate
progress management.
The company will also set targets for the individualsites of the Electronics segment in addition to the existinggroup targets, while sharing information that shows theaction plans and promotion policies for each site, as wellas the progress conditions and results. In particular,
Casio is constructing mechanisms to clarify the site policies, including equipment introduction, investigation of
new environmental technologies, and verification of successful cases, which suit the characteristics, role andfunctions of each production site.
In this way, Casio intends to realize its group targets,by raising planning accuracy at each site.

While group companies continue to share the corporate
creed and the Charter of Creativity for Casio, and havebroadly kept pace with Casio Computer Co., Ltd., individual companies have carried out initiatives according
to their individual circumstances, based on individual
policies. In the future, Casio Computer Co., Ltd. will
establish an EHS (environment, health, human rights, andsafety) foundation on which to promote CSR improvements for the entire group.
Based on t h e Material Procurement Policy that
includes provisions for the environment, health, humanrights, and safety, Casio is ascertaining and evaluating
the conditions at each supplier. The company will thenprovide education and guidance for those suppliers thatneed assistance, thereby raising the CSR level of theentire supply chain.

Casio Corporate Report 2006

Company Data

Environment

Casio and Society

immediately implemented. These concerned the methodof reporting responsibilities toward suppliers, employment of persons with disabilities, and efforts to help
prevent global warming.
In response to Mr. Kawakita’s points for improvement
however, Casio is addressing these items as futureissues, and is working to reflect them in its current activities as outlined below.

Casio and Employees

Casio asked Hideto Kawakita, Chief Executive Officer of
the International Institute for Human, Organization andthe Earth (IIHOE) to provide an independent opinion forthis report. IIHOE has a record of successful consulting
to organizations concerning the promotion of CSR as wellas environmental and social communication.
We have endeavored to incorporate into this reportvarious suggestions from Mr. Kawakita that could be

Casio andthe Global Environment

Profile of IIHOEInternational Institute for Human, Organization andthe Earth (IIHOE) is a nonprofit organization (NPO)that has been supporting NPO management andCSR capacity building since 1994.
URL: http://www.iihoe.com/ (in Japanese only)

Casio and the Market

Hideto Kawakita, Chief Executive Officer
International Institute for Human, Organizationand the Earth (IIHOE)

Response to the Independent Opinion – Points for Improvement

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CSR Highlights

Points for Improvement● Casio has not achieved its targets for the amounts ofcarbon dioxide emissions, water usage and waste fortwo consecutive years. It appears that the targets areeither too difficult or that the management systems are
not functioning properly (pages 20 and 40). Based on
the active incorporation of changes in businessperformance and market value, Casio needs to disclose its annual targets and details of actual measures

Corporate Profile● In consideration of people with visual disabilities, thisreport uses barrier-free design in graphs anddiagrams.
● Active initiatives in the development of products that
reduce environmental impact, such as “electronic dictionaries,” “Tough Solar” and other wristwatches withenergy-saving LSI, and next-generation fuel cells(pages 6 to 8, and 15).
● Active provision of opportunities for the families of
employees and local elementary and middle school
students to experience and learn about the workplace,through the “Factory Tours for 10,000 People” program(page 18).
● Provision of more detailed CSR information on the Web
including material balances for each business area.

taken for initiatives to be completed by 2010. In particular, it needs to disclose both the basic units andoverall amounts of actual production of carbon
dioxide emissions.
The company must also actively learn from successful cases and thoroughly promote methods forenergy saving in daily operations at production sites.
Furthermore, the committees and departments operating under Casio Environmental Conservation
Committee have to go beyond the reporting of results,
to the promotion of initiatives based on future forecasts.
● Casio should actively support the establishment of theproper foundation for EHS (environment, health &human rights, safety) for its supply-chain, includinggroup companies and principal suppliers.

GRI Content Index

1. Vision and Strategy

5. Performance Indicators
Item

Corresponding page numbers

Item

Corresponding page numbers

1.1 Statement of the organization’s vision and strategy regarding its contribution
to sustainable development

2-3, 22, 37

Integrated Indicators

1.2 Statement from the CEO describing key elements of the report

2-3, 37

Economic Performance Indicators
Customers
EC1
13, 66

Item

EC2

65

Providers of CapitalEC629, 36

Public Sector

EC9

63-64

EC10

61-64

Corresponding page numbers

Organizational Profile
2.1 Name of reporting organization

65-67

2.2 Major products and/or services

6-13

2.3 Operational structure of the organization

6, 23, 65-67

2.4 Description of major divisions, operating companies, subsidiaries, and joint ventures

Environmental Performance Indicators
Materials
EN1
46-47

20, 46-47

65-67

EN4

44

2.5 Countries in which the organization’s operations are located

65-66

EN18

44

2.6 Nature of ownership; legal form

65-66

EN19

44

2.7 Nature of markets served

65-66

EN5

46-47, 51

2.8 Scale of the reporting organization

65-66

EN22

45-46

2.9 List of stakeholders, key attributes of each, and relationship to the reporting organization

Table of contents page

Report Scope
2.10 Contact person(s) for the reportEN8

20-21, 46-47

Back cover

EN9

46-47

2.11 Reporting period for information provided

67

EN10

46-47, 51

2.12 Date of most recent previous report

Table of contents pageEN11

46-47, 53

2.13 Boundaries of report

67

EN12

46-47, 51

2.14 Significant changes that have occurred since the previous report

Table of contents page, 65-67

EN13

42

2.15 Basic matters for comparison from period to period, and/or between reporting organizations Table of contents page, 65-67

EN30

21, 46-47

20-21, 42

2.16 Re-statement of information provided in earlier reports

Emissions, Effluents and Waste

Products and Services EN14

44-47

EN15

46-47

Compliance

EN16

21, 422.18 Criteria/definitions used in any accounting for costs and benefits

48-49

Transport

EN34

46-47, 54

2.19 Significant changes in measurement methods since the previous report48

Overall

EN35

48-50

2.20 Policies and internal practices to enhance and provide assurance about the accuracy,completeness and reliability

56, 68Social Performance Indicators

2.21 Policy and current practice with regard to providing independent assurance

68

2.22 Means by which report users can obtain additional information and reports

Notation of a URL on each page

Labor Practices and Decent Work
Employment
LA1
57, 66

Labor/Management
Relations

3. Governance Structure and Management Systems
Item

Corresponding page numbers

23-24

3.2 Percentage of the board of directors that are independent, non-executive directors

23

3.3 Process for selecting and appointing board members

23

3.4 Board-level process for oversight

23-24

3.5 Linkage between executive compensation and achievement of goals

Omitted

3.6 Organizational structure and key individuals responsible

23, 41

3.7 Mission and values statements (codes of conduct, principles, performance policies, etc.)

22-23, 26-31, 33,
35-36, 38, 52,

Table of contents page, 56

3.10-12 Approaches to stakeholder consultation, type of information generated byconsultation and its use

18, 26-27, 33-36,

3.16 Policies and/or systems for managing upstream and downstream impacts

26-28, 33, 35

3.17 Approach to managing indirect impacts

29, 44, 46-47,
65-66

3.19 Programs and procedures regarding performance24, 41, 61

3.20 Status of certification regarding management systems

25, 34, 42

4. GRI Content Index
Item

Corresponding page numbers

4.1 A table indicating location of each element of the GRI Report Content, by section and indicator

69

Casio Corporate Report 2006

60

LA14

60

LA15

59, 6058
58

Diversity and Opportunity LA10

57

LA11

57

HR1

22, 24, 57

HR2

28

HR3

28

HR8

22, 24, 57, 58

HR4

22, 24, 57

Human Rights
Strategy andManagement

Freedom of Association andCollective Bargaining
HR559Child Labor

HR6

22, 24, 28, 57

Forced andHR7Compulsory Labor
Disciplinary Practices HR922, 24, 28, 57

SocietyCommunity

25

HR10

25

SO1

24, 61-62, 64

SO4

56, 67

Bribery and Corruption SO2

24

Product Responsibility
Customer Health
PR1and Safety
PR626-27, 34

Products and Services PR2

26-27, 34

Respect for Privacy

W69

60

LA7

LA17

56, 61-66
3.18 Changes in the location or operations during the reporting period

60

LA6

44, 56

PR8

26

PR3

25

Company Data

23-27, 34, 42

59

LA5

58

Non-discrimination

3.14-15 Charters, sets of principles, various associations, etc. which the organization subscribes 16-17, 61-64
to, endorses or participates in

59

LA13

LA16

59, 61-64

Overarching Policies and Management Systems
3.13 Precautionary approach or principle

57

LA4

Casio and Society

23, 29, 36

3.9 Definition of major stakeholders

59

LA3

Training and Education LA955-59, 61
Stakeholder Engagement
3.8 Mechanism for shareholders to provide recommendations or direction

57

LA12

Casio and Employees

Structure and Governance
3.1 Governance structure of the organization

Health and Safety

LA2

Casio andthe Global Environment

67

Casio and the Market

Report Profile
2.17 Decisions not to apply GRI principles or protocols in the preparation of the report

Water

CSR Management

46-47

CSR Highlights

EN2
EN3

EnergyCorporate Profile

2. Profile

13, 65-66

Contact Information

Casio Computer Co., Ltd.
http://world.casio.com
For inquiries on CSR in general:
CSR Operations Section
Casio Computer Co., Ltd.
1-6-2 Honmachi, Shibuya-ku Tokyo 151-8543
Tel.: +81-3-5334-4901 Fax: +81-3-5334-4547
Email: csr-report@casio.co.jp
For inquiries on environmental issues:
Environment Center
Casio Computer Co., Ltd.
3-2-1 Sakae-cho, Hamura-shi Tokyo 205-8555
Tel.: +81-42-579-7256 Fax: +81-42-579-7718
Email: eco-report@casio.co.jp
Published: December 2006