Sustainability Report 2010
Year

ended

March

31,

2010

USHIO GroupAt a GlanceContents

USHIO INC. began operations as a manufacturer of industrial light sources in 1964. The Company has sinceevolved into a “light creator” that provides light units, equipment, and systems as well as “light solutions”
through developing new light sources and developing and applying proprietary optical technology.
USHIO’s light technology is not only for “illumination” but also is widely employed in cutting-edge industrial
segments and the science and technology arena as an energy source. In addition to producing countless productsthat have captured the top global share, we are currently cultivating new business fields in such areas asbiotechnology, medical science, microelectronic mechanical systems (MEMS), and visual imaging.

Visual Image
Equipment

Net Sales
Office Automation
Equipment

5%

OthersC2 USHIO GroupAt a Glance

2 Top Message
4 Feature
Main Products

Main Group Companies

Digital cinema projectors
Film cinema projectors
Lamps for cinema projectors
Lamps for data projectors• CHRISTIE DIGITAL SYSTEMS
U.S.A., INC.
• CHRISTIE DIGITAL SYSTEMSCANADA, INC.
• XEBEX INC.
• CHRISTIE DIGITAL SYSTEMS
U.S.A., INC. Japan Branch

6%

My Job Is CSRUSHIO Group Management
Philosophy and CSR Management
8 Management Philosophy
9 Corporate Governance

Illumination

8%

Electronics¥119.0 billion

Lamps/lasers/EUVs for photolithography
Exposure systems for various electronic circuit substrates
LCD panel bonding systems
LCD panel optical cleansing systems
UV systems
Photoheating systems

Visual Image
Equipment

51%

Electronics• GIGAPHOTON INC.
• XTREME technologies GmbH

Working with Society
11 10 Action Guidelines
12 Working Together with Employees
14 Working Together with Customers
15 Working Together with Business
Partners

30%
Illumination

Halogen lamps
Metal halide lamps
Xenon short arc lamps
LED
Various spotlights• USHIO LIGHTING, INC.
• USHIO SPAX INC.

16 Working Together with Local
Communities

Environmental Measures
18 USHIO’s Environmental Policy

Corporate Profile

19 Highlights of Phase Two of USHIO’s
Environmental Action Plan

Company NameUSHIO INC.

Head Office

6-1 Otemachi 2-chome,
Chiyoda-ku, Tokyo, Japan

EstablishedMarch 1964

20 Phase Three of Environmental
Action Plan

Paid-In Capital¥19,556,326,316

22 Environmental Management System

Number of Employees

4,732 (Group-wide)

Office Automation
Equipment

Light sources for scanners
Light sources for toner fixation• USHIO HONG KONG LTD.
• USHIO (SUZHOU) CO., LTD.

USHIO’s 2020 Environmental Vision

23 Global Warming Countermeasures
25 Green Products
26 Conserving Resources
27 Environmental Communication

In choosing the material for this Sustainability Report, we focused in particular on identifying
what readers would be most interested in and what the most critical matters for reporting
would be. These matters were selected as indicated in the diagram on the right. In thisreport, we adhered to the “triple bottom line” format of economic, social and environmental reporting used in previous reports. At the same time, this year’s report was preparedwith an emphasis on the themes of People, the Environment and CSR Activities in order toincrease understanding and interest in the USHIO Group’s activities among as many stakeholders as possible.
This report was written in our own format based on: Global Reporting Initiative (GRI)
Sustainability Reporting Guidelines, Generation 3 (GRI G3); Environmental Report
Guidelines (2007 edition) from the Japanese Ministry of the Environment.

Approach to Materiality at the USHIO GroupHigh

Importance to stakeholders

Information Provided by This Sustainability ReportHigh

Rank C

Rank B

Rank A

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Reportingin printed
material• Use of Website• Scope of Report

In addition to preparing the Sustainability Report 2010
based on the approaches outlined on the left, we provide
more comprehensive and detailed reporting on our website.
Please refer to the USHIO corporate website for details on
matters with the label shown below.

Time Period:

http://www.ushio.co.jp/en/csr/index.html

This report basically covers
FY2009 (April 1, 2009 to
March 31, 2010), but also
includes some continuing
activities from before
FY2009, and some activities
in FY2010.

Organizations: All USHIO business sites andGroup companies worldwide

Reporting throughweb and other media

Financial Reporting
28 Financial Reporting
29 Third-Party Opinion
Response to Third-Party Opinion

High

Importance to USHIO

1Top Message

Top Message
Striving for a 21st Century
Model of Management

Providing Satisfaction andHope to All Stakeholders

It has now been ten years since the start of the 21st century.

The third difference is human resources. It is important

We face many challenges as a society, including environmental

that each and every employee consider how to balance theirproblems—specifically, global warming and loss of biodiversity—

work life and private life. Having a purpose in life, a sense ofand the loosening of social ties due to material wealth.

mission and aspirations, feeling that you are useful to and

Takada Koin, who was abbot of Yakushi-ji Temple,

needed by others, and having friends and family to share insounded the warning bell with the phrase, “Prosper materi-

life’s joys and sorrows are all extremely important factors.

ally, perish spiritually.” People may be starting to notice that

We must build a society in which each individual has auton-

important things were lost during Japan’s extended period of

omy and demonstrates their individuality and imagination.

rapid economic growth and may be striving to regain them.

Volunteer activities rooted in compassion will play an impor-

I suspect that this movement is reflected in current con-tant role in the 21st century society. That is to say, excellent

sumption trends.

companies need excellent employees with an excellent out-

Companies today need to establish a model of management suitable for the 21st century. The first difference

look on life.
The mission of the USHIO Group remains unchanged since

between conventional management and 21st century man-its founding. It is to deliver high-quality light and high-quality

agement is the initiative to address environmental issues.

lighting products to the market and to solve the problems

This takes the form of corporate activities that do not destroy

customers face. Believing in the potential of light, we will

nature and do not waste finite natural resources as well as

convert light into a force for solving problems and use lightmaking products and services that meet the environmental

to create markets yet to be seen. This is the social responsibility

needs of customers. The second difference is furtherof the USHIO Group.

response to globalization. Japan must revitalize regional
economies in step with expansion in Asia and develop
opportunities to catalyze its own growth. It is essential that
we understand each other’s national and cultural differencesand embrace the fact that we live together with the rest of
the world’s inhabitants.
Jiro Ushio
Chairman and USHIO Group Representative

Business Development in Step with Socialand Environmental Change
The major recession that enveloped the globe starting in thesecond half of 2008 vastly changed the social and environmental demands placed on companies. On the environmentalside, requests for greater energy savings and higher efficiency
have mounted, and on the societal side, the social responsibilities of companies, including employment, have beenstrongly called into question. The USHIO Group has included
eco-conscious business development in its Medium-term
Vision. We will incorporate further environmental considerations into existing products and actively engage in new
areas of business, such as solid-state light sources withexceptional environmental performance, in order to meetthe needs of society.

Environmental Initiatives Rooted in Our
Core Business
The USHIO Group’s environmental initiatives have entered
their third phase based on achievements from and criticalreflection on the past six years.
USHIO has identified challenges for 2012 that must be
tackled in order to realize the goals for 2020 laid out in ourEnvironmental Vision. We have set an absolute target for CO2
reduction in order to help prevent global warming and haveincorporated new initiatives for preserving biodiversity into
our goals. We led the industry in recycling super high-pressure
UV lamps used in semiconductor manufacturing equipment
and xenon lamps for movie theaters. This new initiative
meets the needs of customers while simultaneously helping
to protect the environment.

Guided by the USHIO Group Management Philosophy,
which states, “Contribute to society through superior products and innovative research and development,” we will
actively work to help the environment through our products.
We regard this as an important responsibility of the USHIOGroup. In particular, customers recently have come to havean extremely high awareness of environmental issues. We
will redouble efforts to develop and provide products thatare beneficial to the environment even after they are delivered
to customers.

CSR in the Broad Sense
Corporate social responsibility means legal compliance,
environmental considerations and social contribution in the
narrow sense, but in the broad sense it means contributing tosociety by providing better products and services, ensuring
stable profits, and returning profits at appropriate levels.
In order to steadily execute these duties and achievesustainable growth and development, we will sketch a clear
vision for the Company, conduct the necessary businessdevelopment and enhance programs and systems. In theprocess, we aim to provide satisfaction and hope to all
stakeholders—employees, customers, suppliers, local
communities, and shareholders.

Shiro Sugata
President and Chief Executive Officer(Chairman of the Environmental Committee
and Group Environmental Council)

2

3

FeatureFeatureMy Job Is CSR

Quality & Customer Satisfaction

In this feature, we spotlight how individual employees think about and approach the five aspects of CSR weemphasize—people, quality, the environment, society, and compliance.

PeopleNobuo Inoue
Quality Control Department, USHIO INC.

I wanted to use my many years of experience to help in some way
even in retirement, so I chose to take part in the Senior Expert
Program. I have been involved in making lamps for a long time, butthere are still many, many discoveries to be made and everyday
there is something to spark my interest. In an environment where I
can think together with my worksite colleagues, I plan to continue
working to create even better xenon lamps.

A company provides a stage for people
with differing personalities and values
to come together and work toward
common goals while fully demonstrating their respective skills and abilities.
Communicating aspirations and experiences developed over many years
even after reaching retirement age
serves to pass those aspirations andexperiences down to the next generation. For further details, see page 12,“Working Together With Employees.”
For details

P12

Lü Ying

Ruut Schouten

Quality Engineering Section,
USHIO (SUZHOU) CO., LTD

Sales Department, USHIO EUROPE B.V.

I promote sales of USHIO Group products(excluding equipment) and develop OEM
customers in Benelux, Scandinavia, thethree Baltic states, and the Turkish region.
In order to comply with a law on sterilizing
ballast water used by cargo vessels, etc.
that is slated to go into effect in 2012, we
proposed not only lamps for sterilizationequipment manufacturers but lamps packaged with power supplies developed anddesigned by USHIO EUROPE in an effort tomeet user needs in a highly detailed
manner. Going forward, we intend tocontinue maximizing USHIO’s strengths towork to resolve customer concerns andprovide products that benefit society.

I am responsible for technology used in
office automation equipment. Design
work has started to be transferred fromJapan, giving me the opportunity to think
about many new things. I am gradually
coming to understand the thought that
goes into designing the lamps producedin Suzhou. In the past when trouble
occurred in the process, I would consult
with the technology team in Japan andwould ask them to make changes in thetechnical drawings or specifications, but I
now intend to do my best to handle suchproblems in-house.

Yumiko Nakata
Sales Department, USHIO INC.

Masahito Kadota
Production Department, USHIO INC.

We are delighted yet daunted by the challenge of increasing production to meet growing demand for lamps used indigital cinema projectors. While the production line is extremely busy as a result, our first priority is to ensure safety
as we work to improve operational efficiency, and maintain and improve quality.

We conduct a recycling program for xenon lamps used by movie
theaters. The program was started in response to customers telling
us that they didn’t know how to dispose of the xenon lamps andthat they were piling up, which was a headache for them. We
created a collection and recycling system, previously thought to be
exceedingly difficult to achieve. More than anything, I am thrilled tosee the faces of our happy customers. The program also benefits
the environment by reducing waste.

We put customer satisfaction first andwill continue to engage in sociallysignificant businesses that help createa happy, enriching society throughexceptional products and new researchand development. The xenon lamp
recycling program is a product of these
efforts. For further details, see P26,
“Conserving Resources.”
For details

P26

Brenda Esoy
As our customers have entered overseas markets, USHIO Group products
manufactured at overseas production
sites have increased. To ensure thatoverseas manufacturing plants provide
the same quality and customer support
as Japan, we are focused on training
local human resources through suchinitiatives as personnel exchanges
between Japan and overseas sites.

Production Department, USHIO PHILIPPINES, INC.

I had the opportunity to work at the Harima Division for half a year
from 2007 to 2008 in order to learn about the manufacturing
process for lamps. For the first two months I studied the language,
and starting in 2008 training was conducted on the manufacturing
floor. Training on the manufacturing floor was difficult because of
the language barrier and the winter weather, but I was able to learn
the manufacturing technology used in the sealing process, which
has a major impact on quality. The things I learned in Japan have
proven extremely useful back at the Philippines plant. A tangible
result is the confidence we have gained in creating products.

Xia Gao
The USHIO Group believes that thefundamental task of a company iscreating and providing exceptional
products, new products and better
services. This year, USHIO is integrating
its policies on quality and conducting
initiatives from the customer’s viewpoint, which include creating “Hikarino Torisetsu,” a reference guide tolighting options. For further details,
see P14, “Working Together with
Customers.”
For details

P14

Sachiyo Kitada
Production Department, USHIO INC.

I know many people who are working while raising their children,
so I didn’t feel too anxious about taking childcare leave. Since
returning to work, the days of focusing solely on my children
now seem like a dream, and every day is quite hectic. To
employees thinking about taking childcare leave, I say not toworry and take full advantage of it. When you return, thosehectic days will start again!

4

USHIO INC. has earned Kurumin certification under Japan’s Act for Measures
to Support the Development of the
Next Generation for two consecutive
years, illustrating our commitment tobalancing work and raising children
through various work-life balance
programs. For further details, see page12, “Working Together With Employees.”
For details

P12

Management Department, USHIO SHANGHAI, INC.

USHIO SHANGHAI and USHIO (SUZHOU) CO., LTD. have publishedthe USI & UZI internal newsletter China Window since July of lastyear. The newsletter features monthly messages from top management and information on company activities, and has the goal ofenhancing communication within the Company. It is also useful asa tool for building relationships with distributors, which play animportant role in promoting sales of USHIO products in the Chinese
market. Recently, the newsletter has begun to run a series of articles
on the day-to-day work of employees and events in their lives
outside of work. We intend to continue China Window in order tocreate an even better company.

Mitsuaki Kai
Public Relations Office, USHIO LIGHTING, INC.

Fulfilling corporate social responsibilities involves “bridging the gap.” This means not only creating a bridge between
the Company and its stakeholders but also working to provide information to fill the gap between stakeholder perceptions and the reality of USHIO and constantly convey our true colors. We are currently working to raise the satisfaction of stakeholders by promptly and accurately identifying the information desired by the market and customers,
and providing such information on a “just-in-time” basis.

5FeatureFeatureEnvironment & Social Contributions

Compliance & Society

Kazuaki Imamichi

Junko Yabuuchi

Technology & Engineering Department, NIHON DENSHI GIJUTSU CO., LTD.

IT Solutions Department, Administration Division, USHIO INC.

NIHON DENSHI GIJUTSU (NDG) participates in volunteer activities every year. This year we participated in clearing
underbrush from the “21st Century Forest” in the city of Minamiashigara. Cutting away brush allows light to reachseedlings that have been planted and prevents nutrients from being taken by weeds, helping the seedlings to grow.
Working in the hot, summer sun really made us sweat, but the aroma of the freshly cut grass and learning about theinsects and plants that emerge as you cut the grass were fresh, new discoveries not normally encountered in daily
life. Working together with others outdoors also provides a great opportunity to communicate with co-workers on alevel not possible at the office.

We regard compliance as including
observance of societal rules and conventions, not just laws and regulations. The USHIO Group is committed
to open and fair corporate activities
that abide by the law and societal
conventions. For further details, seepage 8.

The IT Solutions Group (Tokyo Office) provides support for EDI
operations in sales activities. (Electronic Data Interchange (EDI) is asystem for sending and receiving data, such as order and estimate
information, between companies via the Internet.) EDI involves
handling information that is important to companies, but we sometimes need to know user IDs for operational purposes, so we exercise caution when handling such information. We also work to raiseawareness of this issue among users as well.

For details

P8

Christie Dubal
The USHIO Group is engaged in avariety of social contribution andenvironmental communication initiatives. At USHIO AMERICA, people
referred to as “USHIO Angels” conduct
support activities for people fighting
cancer. For further details on the
USHIO Group’s social contribution
initiatives, see page 16, “Working
Together with Local Communities,”and page 27, “Environmental
Communication.”
For details

P16

Production Operator, USHIO AMERICA, INC.

Cancer shakes up our lives in many ways. It brings heartache whena friend or loved one dies from it and jolts us when we are diagnosed with it. I cheer on the American Cancer Society’s Relay forLife while thinking of friends who have lost the battle to cancer
and others who have overcome it. And, for myself, and for everyone currently fighting the disease, I plan to continue supporting
the American Cancer Society.

P27

Pam Lothman
EMS Division Manager, CHRISTIE DIGITAL SYSTEMS U.S.A., INC.

As the manager of the EMS Division at CHRISTIE DIGITAL SYSTEMS
U.S.A., INC., I am involved in continuous efforts to strengthen
environmental management system (EMS) compliance and eco-sys
programs. I promote various initiatives, including recycling projects
for employees, events related to electric/electronic device waste,ride-sharing in minivans for commuting to work and community
events. I am proud to work for a company that places top priority
on environmental matters, issues and actively promotes environmental responsibility and awareness.

The USHIO Group conducts environmental initiatives on a unified groupbasis. The USHIO Group’s Third
Environmental Action Plan calls forstrengthening coordination across theGroup. For further details on the
USHIO Group’s environmental initiatives, see “Working for the Environment,” which starts on page 18.
For details

P18

Kazumasa Yoshioka
The USHIO Group is focused not only
on reducing the power we consume
but also on initiatives that help theenvironment after products are delivered to customers by making themmore energy efficient. For further
details, see page 25, “Green Products.”
For details

6

P25

Technology & Engineering Department, USHIO INC.

I am involved in designing LED modules as a new light source forscanners. Office copy machines primarily use rare gas fluorescentlamps. Using the LED modules currently being developed will
improve efficiency (power consumption and light for illuminating
the paper) by 70% compared to rare gas lamps. We are working to
make the modules commercially viable and conscious of the factthat reduced environmental impact is an important element that
determines a product’s value.

Kay Matsuda

Kumiko Sakioka

Director of Internal Audit/J-SOX,CHRISTIE DIGITAL SYSTEMS, INC.

Sales Management Section,
Sales Administration Department, USHIO INC.

I am responsible for corporate internal
audits and J-SOX for Christie group companies. The scope of corporate internal
audits includes checking for compliancewith regulations, company policies andprocedures, and accounting rules. Discrepancies in each area are identified andfollowed up on for proper compliance. For
J-SOX, the risks and controls are identified
and documented, and the design andoperation of internal controls are tested for
effectiveness. In order to perform effective
audits, I try to understand the company
system and process flows. These are challenging and rewarding tasks.

I am currently responsible for receivables and credit management, centeredon internal control, for sales divisions.
Internal control compliance, which ismandatory for companies listed on thefirst sections of stock exchanges, isbased on proper daily administration on
an ongoing basis. I strive to develop
systems that ensure everyone in thesales division carries out their work withsuch an awareness. I also provide
instruction and training to facilitate
understanding of the significance of theprocess and impart the knowledge thatis needed to question bad practices.

Koichi Yamada
We believe that companies should betransparent and open to society. Properly and proactively disclosing management policies, technologies, products
and other information on our businessactivities earns the trust of the
public and gives us a positive reputation in society. We actively disclose
information while also respecting
the value and rights associated withthird-party information.

IR & Public Relations, USHIO INC.

Raising corporate value is one factor behind USHIO’s emphasis on
CSR. I am involved in ensuring USHIO’s initiatives are properly
understood in building even better relationships with stakeholders.
Communication activities are one means of accomplishing this, andthe IR & Public Relations team is adept in this area. We will continue
to promote proactive, interactive communications through the Web,
trade shows, PR newsletters and company newsletters.

Tomoko Nakao
Intellectual Property Department, USHIO INC.

As a member of the Intellectual Property Dept., I am involved in applying for
and administering patents and other intellectual property rights. Intellectual
property rights are a company asset. I make sure that information does notleak out before a patent is filed or the information is made public. I constantly
work to ensure rights are properly maintained and managed after they havebeen registered.
Naturally, it is equally important to respect the rights of other companies like our own. In the event of a patent conflict, we will address theissue as a top priority, while working to avoid related risks.

Conducting activities while
respecting property rights is
one of a corporation’s important social responsibilities. We
constantly strive to ensurethat property and assets
possessed by us and others
are respected and not
infringed upon.

7

USHIO Group Management Philosophy and CSR Management

Basic Policy
The basic policy of the USHIO Group is to ensure the transparency and efficiency of the Group’s management,
and increase corporate value to meet the expectations of all of the Group’s stakeholders. To this end, we place
the establishment and maintenance of systems of internal control, incorporating compliance with laws,
regulations, social norms, corporate ethics, and J-SOX regulations, as a top management priority and makeevery effort to promote these systems.

Four key emphases have constituted the management philosophy underpinning all activities of USHIO and USHIO Group members since the Company’s
foundation. These emphases were created based on the desire to make
USHIO an indispensable company for everyone by drawing on the wisdom of
employees to grow. While the wording of the four key emphases has undergone two revisions over the years to reflect the changing times, this management philosophy remains a beacon for the USHIO Group.

Approach to Internal Control

Within the management control structures of USHIO, we haveestablished the Board of Directors, which determines management policies and makes decisions about other matters of thehighest importance. The directors also oversee the managementof business operations. Meanwhile, the representative directors
are responsible for conducting business operations. The Board of
Directors has a regular meeting once a month, and unscheduled
meetings are held when necessary. We also have a Board of
Corporate Auditors as an auditing body with five members
including three outside corporate auditors. Each corporate auditor
conducts audits within their specialized field of auditing. Furthermore, to assist the Board of Directors in reaching decisions, weestablished the Executive Council and the Group Coordination
Council. These advisory units examine and discuss management
strategies and medium- and long-term management policies withrespect to USHIO and the entire Group. In addition, the USHIOGroup has a business unit structure and an executive officer
system for the purposes of strengthening and speeding up the
execution of business operations by the representative directors.

In the USHIO Group, we have established action guidelines inorder to define standards for conduct that require everyone at
the Group to comply with laws, regulations, the Articles ofIncorporation and ethical standards. To ensure strict compliance,
we have established a department responsible for compliance.
The Internal Auditing Office works together with the department responsible for compliance to audit the design andoperation status of the compliance system, and reports its
results to the Board of Directors and the Board of Corporate
Auditors when appropriate.
The USHIO Group must deal with risks associated withcompliance, the environment, product quality, finances, legal
matters, natural and other disasters, information management,
export controls and other aspects of business operations. The
respective supervising departments prepare rules and guidelines,
conduct training, prepare and distribute manuals and carry out
other activities.

Corporate Governance

USHIO Group Management Philosophy
and CSR Management

Corporate Governance Framework

USHIO’s Internal Control Framework

General Meeting of Shareholders
Appointments
and removals

Appointments
and removals
Reporting
ReportingBoard of Directors
Auditing
Appointments
and removals

Appointments
and removals• Appointments Reporting
and removals• Supervision

Board of Corporate Auditors
Auditing

Independent Auditing Firm

• Approval of appointments andreappointments• Evaluation of appropriatenessof financial audits

Reporting

Reporting

Representative Directors
Product Liability Committee
Instructions andsupervision

Reporting about
important matters

Security Export Control Committee
Environmental Management Office

Executive Council• Deliberate important matters• Oversee implementation

Compliance Committee
Business Auditing Department
Submitting policy
proposals and plans

Authorization of policy
proposals and plans

Divisions, subsidiaries, affiliates

89

USHIO Group Management Philosophy and CSR Management

Corporate Governance

Strengthening Business Audits

The USHIO Hotline

The importance of internal audits has increased along with theenactment of the Companies Act and Financial Instruments andExchange Act of Japan, in order to prevent corporate impropriety.
Besides compliance audits of laws and regulations, and assessments of the design and operation of internal controls, internal
audits must now also offer proposals for improvement, serving asa consulting function.
At USHIO, we conduct various audits, including compliance
audits and audits of export controls. Moving forward, we will
look closely at business processes and workplaces, going beyondlaws and regulations, in accordance with internal audit regulations.
Based on these wider audits, we will make proposals thatstreamline management, improve business processes, protect
assets, minimize management risks and lead to improved
operations. Moreover, audits will be conducted with deeper
cooperation from other divisions and the corporate auditors.

The USHIO Hotline has been in operation in the USHIO Groupsince October 2006. All Group employees in Japan can use thishotline for direct communications with individuals outside theGroup to consult or report on workplace violations of laws andregulations, internal rules,
ethics and other standardsof behavior. The hotline
allows for quick discovery
and correction of improper
behavior and provides
access to consultations
while protecting individuals
who use the hotline fromany negative consequences.

10 Action Guidelines

Compliance With Export Control Regulations
When exporting products, the USHIO Group must comply with ahost of laws and regulations, including the Foreign Exchange andForeign Trade Act, and Export Administration Regulations. If the
USHIO Group fails to comply with any of these laws and regulations, it may be unable to transact with customers. Accordingly,
at USHIO, compliance with laws and regulations for exports isbased on the Internal Rules for Compliance with Export Controls
and the Security Export Control Committee is responsible forputting the required measures in place.
In fiscal 2009, we established a fundamental policy and codeof behavior for export controls. Through the Joint Council of
Security Export Controls Committees we shared and standardized
information in all USHIO business and sales sites and divisions.
At the same time, we held regularly scheduled meetings of theExport Controls Group Liaison Conference to centralize oversightof export controls for all Group companies, and established asystem for visualizing export controls. We also started using asearch system for parties requiring special attention, thereby
reinforcing customer management activities. Looking ahead,
we will continue efforts to share and standardize information
throughout the USHIO Group and strengthen the PDCA cycle
framework for enhancing education, awareness and auditing ofexport controls.

Working with Society

The USHIO Hotline

Information Security
The use of IT is essential for business activities. On the other
hand, there has been an endless stream of security issues related
to IT in society. Among various others, these include leakage ofconfidential and personal information, infection from computerviruses, unauthorized system access, and work stoppages due tosystem malfunctions.
USHIO acquires and holds a variety of information in thecourse of conducting its business operations. We are well awareof the importance of safeguarding important information about
customers and suppliers. We have established rules for theproper handling of this information and have imposed stringent
requirements concerning the protection of confidential information. Another priority is compliance with Japan’s Personal
Information Protection Law. To reinforce everyone’s understanding of the need to comply with this law and ensure its effective
enforcement, all USHIO departments use a cycle of selfassessments to determine the status of compliance and carry out
continuous improvements based on these assessments. In termsof physical access, IC cards are one way that the USHIO Group
protects information. We use these cards to keep track of whenemployees enter and leave particular rooms and record theirworking hours. Using servers for the centralized oversight ofcomputer software assets and computer virus protection isanother measure that protects information while reducing theburden of system management.

Chapter 1
We shall aim to be a company that accepts diverse individual qualities and values
and where people work together and pursue self-learning and self-improvement.
Chapter 2
We shall strive for the company’s sustainable growth through our innovative,
proactive and prompt management.
Chapter 3
We shall respect the basic human rights of all individuals
and endeavor to create bright, safe and pleasant working environment.
Chapter 4
We shall provide high-quality, safe products and services at appropriate prices
and carry out fair and equitable business transactions.
Chapter 5
We shall work to earn the understanding and trust of society.
Chapter 6
We shall comply with laws and regulations and carry out fair business activities
in accordance with socially accepted practices.
Chapter 7
We shall fulfill our duties to the best of our abilities in conformity
with internal regulations and standards.
Chapter 8
We shall promote environmental protection and the efficient use of resources.
Chapter 9
We shall carry out proactive public relations activities while respecting the value of
information and intellectual property rights of third parties.
Chapter 10
We shall contribute to the development of respective regions
where we conduct business as a member of the international community.

http://www.ushio.co.jp/en/csr/manage/index.html

1011

Working with Society

Working with Society

Working Together with Employees
Based on a management philosophy that calls on us to “Build both a prosperous Company
and prosperous employees,” we are engaged in developing and utilizing a diverse group ofhuman resources and creating workplaces that motivate employees.

Respecting Human Rights

Support for Working Women

Occupational Health and Safety

The USHIO Group respects the International Labour Organization’s
Declaration on Fundamental Principles and Rights at Work. Our
10 Action Guidelines for Business Activities commit us to working to eliminate discrimination on the basis of race, sex, religion
and nationality and for any other reason unrelated to ability or
job performance, and to forming and maintaining good labormanagement relations through dialogue based on good faithand mutual trust.

USHIO INC. strives to help employees balance their work responsibilities with having and raising children, which is said to be themajor reason women quit their jobs, and to create conditions
that make it easier for women to perform at the Company. As aresult, the percentage of women employees in sales and technical positions has been increasing.

USHIO INC. engages in occupational health and safety initiatives
to maintain a workplace that provides total peace of mind to
employees. Various systems have been established to help
employees maintain their health. Health-related counseling isprovided to employees with health or weight issues identified byhealth exams, and industrial physicians consult with employees
working long hours.

Utilizing Global Human Resources

Employment of People With Disabilities
USHIO INC. employs 26 people with disabilities as of March 31,
2010. Employees with disabilities make up 1.91% of the Company’s workforce, which is above the legal requirement of 1.8%.
Various initiatives are also conducted to promote employment ofpeople with disabilities. They include holding workplace tours,
participating in group presentations and actively recruiting at
local schools. Workplace considerations include putting sliding
doors on restrooms, installing handrails on stairways and othermeasures to make our business sites barrier-free. We intend tocontinue promoting
Employment of People With Disabilities
employment of(%)
people with disabili2.0
ties and working to
make the workplace
1.9
readily conducive to
them.
1.8

1.7

2007

2008

2009

(FY)

Re-Employment System
USHIO INC. actively supports employment for seniors. We haveestablished extended employment programs (Senior Partner
Program and Senior Expert Program) that are conducted throughour re-employment system. These popular programs allow
employees to work up to the age of 65.

http://www.ushio.co.jp/en/csr/society/employee/index.html

12

We are committed to developing a working environment thatenables both men and women to balance their jobs and home
life without excess worry. We offer childcare leave and othersupport programs that go beyond legal mandates. In March2009 we created the Work-Life Balance Handbook, whichcontains information on programs for balancing work. It also
contains information on child-raising and maternal welfare, howmanagers should respond, and other tips for employees who
would use the programs and for their managers.
In June 2009 we earned Kurumin certification under the Act
for Measures to Support the Development of the Next Generation
for the second time. There are only 67 companies nationwide
that have earned the certification twice (as of June 2009 andannounced by the Ministry of Health, Labour and Welfare).

Preventing Work-Related Accidents
Safety patrols are conducted at each office and worksite with thegoal of completely eliminating work-related accidents. We arealso switching to alternatives for organic solvents that have been
implicated in health problems.

Education and Training for Human Resources
Development
Various training programs have been established to facilitate thedevelopment of personnel capable of acting autonomously andto make it possible to align the Company’s prosperity withenriching the lives of individual employees.

Globalization Training

Employees Using Childcare Leave
FY2007

FY2008FY2009

Men

2

0

0

Women

25

23

26

Total

27

23

26

Work-Life Balance, Paid Vacation andNo-Overtime Days
Based on a commitment to work-life balance, we designate
certain days as no-overtime days and prearrange paid vacation
days to give employees time to spend with their friends andfamily or on their own pursuits and to help create a more
dynamic working
Percentage of Paid Vacation Days Usedenvironment. We(%)
believe that perfor75
mance improves
when employees
70
maintain their physical and mental
65
health by taking
time off to relax andrejuvenate.
60
2007

2008

2009

(FY)

Working Together with Employees

Working Together with Employees

Overseas sales account for over 50% of the USHIO Group’s total.
We are therefore working to develop and utilize global humanresources by conducting international study programs, hiring
international students, sending personnel from Group companies
overseas to the parent company in Japan, and providing opportunities for interaction between Group companies.

Work-Life Balance Support Programs

Employees who impart their skills and know-how at the technical training dojo are certified as “Meisters” by the Company.
Employees who are passionate about passing down skills andtraining successors and who possess the teaching ability to do soare certified by the Company as accomplished technicians in
special, high-precision processes and as having exceptional ability.

• International study program: This program is designed toprovide employees with specialized knowledge and technicalskills and give them an international outlook through exposure
to culture and knowledge in Japan and overseas.

Support for Self-Development• Correspondence courses: This fiscal year we have a lineup ofroughly 295 courses on subjects ranging from management
to computer skills, in addition to basic classes on foreign
languages and technical topics and certification courses. Whenemployees finish a course, they are paid a bonus. The courses
accommodate the desire of employees to keep learning. In
fiscal 2009, a total of 456 courses were taken.
• TOEIC testing: TOEIC tests are given to employees who want togauge their English ability and further improve it. The Company
pays a portion of the testing fees. A total of 230 employees
took the test in fiscal 2009.

A meister with trainees from overseas manufacturing sites

USHIO Learning Center
USHIO AMERICA, INC. (UAI) values the importance of continued
education in improving employees’ required skills and knowledge,
in an effort to attain the Company’s long-term vision and toenhance the competitive edge of the Company. During FY2008,
UAI established the USHIO Learning Center*1 as a forum forcontinued learning. UAI employees are allowed to spend up to
5% of their working hours on improving their skills and engaging
in other educational programs.
The USHIO Learning Center uses Web-based seminars(Webinars), which allows anyone to take classes regardless of theirlocation, as long as they have access to a PC and the internet, andprovided they have approval from their department manager.
The Lighting Specialist I course, which started in June 2008
and lasted for almost one year, was taken by nine employees
who work in customer service and sales departments. Throughthe course they acquired NAILD certification, an applaudable
accomplishment. The center intends to offer additional programs
and plans to help even more employees improve their skills.

Technical Training “Dojo”
The Discharge Lamp Division of the Harima Division has a technical training “dojo” (martial arts training hall) where veteranworkers with many years of experience impart their skills andknow-how to younger employees.
Lamp manufacturing is an extremely delicate process, so
passing on skills and know-how is very important from thestandpoint of maintaining quality. At the technical training dojo,
trainees from all over the USHIO Group’s global network,
including overseas manufacturing sites, work hard to acquire
these skills.

USHIO Learning Center* A new educational program on lighting fundamentals and application knowledge
created and publicized by the National Association of Independent Lighting
Distributors (NAILD). The program is intended for people not directly involved in
the design of lighting solutions.

13

Working with Society

Working with Society

Working Together with Customers

Working Together with Business Partners

We strive to think from the perspective of our customers and provide products andservices with appealing quality that goes above and beyond run-of-the-mill quality.

We are committed to thinking and acting together with our business partners in connection withachieving harmony and mutual prosperity while respecting each other’s position and rights.

“Hikari no Torisetsu”

Fair and Impartial Procurement

USHIO INC.’s product catalogs generally introduce the products
we sell and manufacture, but up until now they have not been
designed to allow customers to browse through products basedon their particular objectives. We have therefore created a catalog called “Hikari no Torisetsu,” which straightforwardly explains
the functions of light to customers without extensive backgroundin the field and makes it easy for customers to consult with us on
any additional concerns they may have. At the same time, the
USHIO Techno-Lab was established at the Harima Division forjoint research in order to help customers solve some of thebottleneck-type issues they face. Customers can request a copyof “Hikari no Torisetsu” on our website, and it will be sent out
within several days.

USHIO INC. regards free and fair competition between companies
as the source of dynamic development for society. In our relationships with business partners, we always respect the position
and rights of suppliers, comply with Japan’s Subcontract Act andother legal requirements, observe social norms and engage insound business practices.
Procurement activities are the responsibility of purchasing
staff in procurement divisions who have received special training
and instruction. For new transactions, quality, cost, delivery
dates, environmental performance and other factors are determined on the basis of objective criteria and fair, impartial transactions are conducted.

Reinforcing Process Patrols (Harima Division)

In April 2010 USHIO INC. unified policies on quality that had
been established separately by the Harima Division and Gotemba
Division in an effort to raise quality even further into the future.

In fiscal 2009 the Harima Division reinforced patrols of manufacturing processes as a part of efforts to improve quality. Previously,
improvement activities had been conducted by forming working
groups, and improvement initiatives on the production floor were
centered on small-group activities. The process patrols, which
always include personnel from other departments, are conductedby identifying particular areas of focus. The division expects tobenefit from observations made from an outside perspective.

Action Guidelines
1. We will act rigorously in putting the customer first andputting quality first, and will develop appealing products with cutting-edge technology to fulfill the requirements of customers and earn their trust.
2. We will strive to further improve quality by developing
entity-level quality management systems and continually working to improve their effectiveness in order tomeet the needs of customers.
3. We will work to share information with customers,
make cost improvements, develop new products,
pioneer new markets, and promptly provide global
markets with high quality, safe products that arehighly reliable and economical.
April 1, 2010
Shiro Sugata
President andChief Executive Officer
USHIO INC.

http://www.ushio.co.jp/en/csr/society/customer.html

Creation of a Quality Management Database(Gotemba Division)
Many of the products manufactured at the Gotemba Division
have over 1,000 individual components. There is therefore anenormous number of items for which quality control must be
conducted. To help in the process we created a database of past
instances of non-conformance, created a TO DO list of controlled
items, and made it possible to post and share non-conformance
information in technical manuals.
Working groups are also formed for processes and utilized tohelp share information and improve quality.

Initiatives at the Gotemba Division
At the Gotemba Division, all employees involved in procurementtake a seminar on the Subcontract Act in order to deepen theirunderstanding of it.
In addition, the division emphasizes thinking and acting
together with suppliers, and when an issue occurs related toquality or a missed delivery deadline, it investigates the causewith the supplier and takes steps to address the problem.
As a result of these efforts, initiatives to improve on-time
delivery by suppliers and reduce non-conformance rates achieved
their targets for fiscal 2009.

Initiatives at the Harima Division
As overseas transactions have increased, the Harima Division has
consolidated trade operations into its materials division, including
procurement of parts and materials from overseas and supply tooverseas manufacturing sites. The division works to acquire
specialized knowledge of laws and regulations pertaining tooverseas transactions, which are growing increasingly diverse
and include national security guarantee regulations and Export
Administration Regulations, and accommodate them in an
appropriate manner.
It also runs an educational program for personnel involved in
procurement that covers such topics as Japan’s Subcontract Act,environmental regulations and the Foreign Exchange and Foreign
Trade Act. The program helps ensure that we remain in strict
compliance with laws and regulations.
To help us respond quickly and appropriately to requests andinquiries from customers at overseas sites regarding the environment, joint teams have been established by the Harima Divisionand overseas sites and measures are being taken to raise thelevel of our environmental responsiveness.

http://www.ushio.co.jp/en/csr/society/partner.html

We have held Eco-Action 21 (EA21) seminars since fiscal 2006
in order to help develop harmonious relations with business
partners based on mutual prosperity. In fiscal 2009, we
expanded and enhanced the EA21 seminar and held a courseon acquiring EA21 certification, an initiative that began in fiscal
2008. As a result, in fiscal 2009, the percentage of certified
suppliers of the Gotemba Division acquiring environmental
management system (EMS) certification stood at 57.1%, above
our target of 50%. Activities are underway in fiscal 2010 toachieve our goal of having at least 60% of certified suppliers
acquire EMS certification.
At the Harima Division, of the 11 companies that participatedin the EA21 certification course and progressed to the screeningstage in fiscal 2008, ten acquired EA21 certification. In fiscal
2009, suppliers participated in an environmental program put onby the city of Himeji, and one company is currently preparing toacquire certification.

Working Together with Business Partners

Working Together with Customers

Quality Policy

Basic Philosophy
USHIO regards product quality as an overriding priority
and will promptly provide global markets with highquality, safe products and services that are highly reliable
and economical in order to fulfill the requirements ofcustomers.

14

Hikari no Torisetsu

Support for Acquiring Eco-Action 21
Certification

Green Procurement Standards
At USHIO, we have established Green Procurement Standards toguide material purchasing, and these standards are posted on
our website. While complying with the RoHS directive and otherlaws and regulations specific to each country, we stipulate ourown list of chemical substances with an environmental impact,
and comply with both internal and external requirements relating
to chemical substances contained in products. In March 2010,
we issued a revised list in order to comply with the latest laws
and regulations, such as REACH. Under the Green Procurement
Standards, we issue forms for self-assessment of standard compliance systems, and request that our business partners put inplace an Environmental Management System (EMS).
http://www.ushio.co.jp/en/eco/approach/green.html

Supplier Seminars
The Harima Division held a briefing for suppliers in March 2010
to explain recent revisions to the USHIO Group’s Green Procurement Standards. Seventy-five companies participated in thebriefing, which included explanations of revisions made to thestandards, the latest trends in REACH and other environmental
regulations, and USHIO INC.’s environmental and CSR initiatives.
We worked tofurther strengthen
relations with suppliers by promoting
greater understanding of USHIO INC.’s
current status andactivities.

Supplier briefing in progress

15

Working with Society

Working with Society

Working Together with Local Communities
We shall contribute to the development of respective regions where we conduct businessas a member of the international community.

Participation in the United Way

Joint Ecocap Movement Initiative

Solar Decathlon Contests

USHIO INC.’s business sites give factory tours to local high school
students as a way to communicate with the local community. In
July 2009, high school students from Himeji, the location of theHarima Division, visited the plant and received a tour of manufacturing lines and other facilities. A similar tour was given in
September to high school students from Gotemba, the locationof the Gotemba Division. At the Harima Division, group work on
the topic of learning was conducted by the high school students
together with employee alumni of the school. At the Gotemba
Division, the students toured UV lamp production lines andmanufacturing processes for equipment embedded within thelamps. These experiences served as good opportunities todeepen interest and understanding of USHIO INC. as a specialized lighting company.

CHRISTIE DIGITAL SYSTEMS CANADA, INC. has been an ongoing participant in the United Way Campaign run by UnitedWay, a large non-profit organization which gathers and distributes contributions to fund volunteer and NPO activities.
The fiscal 2009 campaign, titled “Christie’s Got Talent,” borrowed its name from the popular UK talent TV series. Througha wide variety of fun events, including silent auctions, bakesales, mini ice hockey tournaments, the campaign collected
65,330 Canadian dollars (about ¥5,730,000) in contributions,up 90% from fiscal 2006. All contributions to The United Way
are distributed to local facilities for families and children
facing difficult circumstances.

USHIO INC. is involved in a campaign to collect bottle caps fromplastic bottles, recycle them and use the proceeds to send vaccines to children in developing countries. This year, the Company
was joined in the campaign by USHIO LIGHTING INC. and XEBEXINC. The first round of the initiative resulted in collection of some
20,000 bottle caps weighing a total of 51.6 kilograms, enoughto fund polio vaccines for 25.8 people.

USHIO AMERICA, INC. donated Synergie LED MR-16 Lamps to
the University of Louisiana-Lafayette. The LEDs were placed in a
residence designed and built by the university to compete in the
Solar Decathlon sponsored by the Department of Energy, an
event that takes place once every two years. The Solar Decathlon
challenges collegiate teams to design, build and operate solarpowered houses thatare cost-effective,
energy-efficient andattractive. Thoughparticipating in thisevent for the firsttime, the Universityof Louisiana-Lafayette
took first place in themarket viability andHousing designed by the University ofpeople’s choiceLouisiana-Lafayette
categories.

Gotemba Division tour

Participating in Himeji Akari Fantasy World
The non-profit Akari no Machi Himeji, which is supported by
USHIO LIGHTING INC., takes part in the Himeji Castle Festival as apart of activities related to light education, promotion of culture
and the arts, and promotion of healthy youth development.
Himeji Akari Fantasy World 2009, one of the events at the
Himeji Castle Festival, was held on August 1, 2009, and Akari no
Machi Himeji made the event a truly exciting spectacle.
“Star Night Domes,” monuments of light three to six meters indiameter created by middle school and high school students using
bamboo, transported festival-goers into a fantasy world. USHIOLIGHTING helped out by supplying halogen lamps for the domes.
We also take partin Star Night Zoo, an
event that involves
illuminating the local
zoo at night, andprovide multifaceted
support for a numberof other lightthemed events.

Star Night Domes

16

USHIO Angels
Employees of USHIO America-Oregon Operation Division, locatedin the town of Newberg, are called “USHIO Angels” by somemembers of the community. The nickname was given by people
aware of the charitable spirit and activities of the employees of
the Oregon Operation Division, which started when a co-worker
succumbed to cancer. It is now the name of the team formed by
USHIO employees for the Relay for Life, an event held in cities andtowns around the country every year by the American Cancer
Society. The Relay for Life involves continuous walking for 24hours, on the grounds of local schools, through parks and on
sidewalks, with teams taking part in a relay format. Walking for
24 hours without resting is meant as a way of signifying support
for people battling cancer, which is a 24 hour-a-day fight thattakes a toll on the body. The USHIO America-Oregon Operation
Division raises money by selling homemade cakes and cookies
and auctioning off handmade gift baskets and other items nolonger used at home. At the Relay for Life in June 2009, theteam donated over $1,000.

Volunteer Cleanup Around Fuchinobe Station
NIHON DENSHI GIJUTSU CO., LTD. participated in a cleanup
campaign on May 9 for the area around Fuchinobe Station on
the JR Yokohama Line, the closest station to the Company. While
enjoying the wonderful weather, employees worked together
with community members for about two hours from 9:00 in themorning, pulling weeds from roads and picking up litter. Some
employees were a little hesitant about hanging around thestation picking up trash while wearing white work gloves, but
looking around, they noticed there was a lot to be done. Everyone pulled weeds near bus stops and picked up garbage while
walking between taxicabs. While cleaning up the rotary in frontof the station in particular, the volunteers had fun surveying thescene from angles not normally experienced.

Donating Relief Funds for Typhoon No. 8
USHIO TAIWAN, INC. donated NTD150,000 through the
Taiwanese Ministry of the Interior to victims of Typhoon No. 8(Morakot), which occurred in August 2009. The typhoon, said tobe the worst disaster in fifty years, caused devastating damage insouthern Taiwan in particular. Agricultural and fishing industries
were hit especially hard, with total losses estimated at some
NTD30.0 billion. The Company’s donation was intended to assist
the people and local areas affected by the disaster and help
Taiwan recover as quickly as possible.

Working Together with Local Communities

Working Together with Local Communities

Factory Tours Held for High School Students

USHIO Foundation
The Group’s USHIO Foundation was established in 1994 tocommemorate the 30th anniversary of the founding of USHIO.
Its purpose is to contribute to the development of humanresources, learning and culture. Its projects include scholarships
for students, and financial support for academic research andcultural activities. In 2009, the foundation provided scholarships to 52 graduate students (including foreign students) and11 students in specialized courses at colleges of technology.

Establishment of Scholarship Fund at Suzhou
University in China
USHIO (SUZHOU) CO., LTD. signed an agreement in January
2009 with China’s Suzhou University to establish the Suzhou
University USHIO Scholarship Fund. This is the university’s firstscholarship sponsored by a foreign-owned company with
operations in the Suzhou province. Establishing the scholarshipis the first project of Jiangsu USHIO Scholarship Fund for Gifted
Students, a non-profit foundation established in 2008 to makecontributions to education in that country. In October, a scholarship ceremony was held at Suzhou University, with certificates presented to the 35 Suzhou University students making
up the first class of USHIO Scholarship Fund recipients.

Members of the USHIO Angels

The first class of USHIO Scholarship Fund recipients pose for a group photograph

http://www.ushio.co.jp/en/csr/society/community.html

17

Environmental Measures

Highlights of Phase Two of USHIO’s Environmental Action Plan
During the three-year period from 2007 to 2009, the USHIO Group worked to achieve the targets of Phase Two of
its Environmental Action Plan. Key achievements of our activities under Phase Two of the Environmental Action
Plan are outlined below. Despite this progress, we did not achieve satisfactory results in terms of environmental
productivity, CO2 reduction targets at the parent company, introducing environmentally conscious product assessment standards at Group companies, and developing super green products. Heeding the lessons learned during
Phase Two of the Environmental Action Plan, the USHIO Group launched Phase Three of the Environmental
Action Plan in fiscal 2010.
* Please visit our corporate website for further details on Phase Two of the Environmental Action Plan and achievements.

23,953 tons-CO

2

Environmental Measures
USHIO’s Environmental Policy
Basic Philosophy

We at USHIO recognize symbiosis with the global environment to be
one of today’s most important challenges for enterprises. We pledge to contributeto the creation of a sustainable society by incorporating measuresfor environmental protection into every aspect of our business activities.

In fiscal 2009, the amount of CO2
emissions was 23,953 tons in absolute terms. On a non-consolidated
basis, the Company reduced CO2
emissions per actual unit sales by
17.4% from the fiscal 1990 level.
CO2 emissions per actual unit sales
were reduced by 6% from the fiscal
2005 level.

Reduction of

26%

Group-wide waste volume in Japanwas reduced by 26% from thefiscal 2006 level.

Action Guidelines

Reduction of

45%

USHIO’s flash lamp annealing device,
which was approved as a supergreen product, reduces power
consumption per wafer by 45%
compared with conventional
annealing devices based on
halogen lamps.

Reduction of18%

The waste ratio for fused quartz
was reduced by 18 percentage
points as a result of Material Flow
Cost Accounting (MFCA) measures.

Reduction of

50.5%

CO2 emissions from distribution
were reduced by 50.5% from thefiscal 2006 level.

Four business sites
USHIO now has four business sitesthat have achieved “zero emissions” status.

Highlights of Phase Two of USHIO’s Environmental Action Plan

1
We will make every effort to achieve our own environmental protection goals,
in compliance with the laws, regulations and environmental rules
both in Japan and abroad.
2
We will endeavor to reduce waste and the use of hazardous substances,and to recycle and save resources and energy to reduce environmental impact
in all fields of business.
3
We will continue to work on the development and supply of environmentallyconscious “Lighting-edge Technologies and Products.”
4
We will strive to prevent environmental risks, such as contamination ofnatural resources by chemicals or waste.
5
We will improve the environmental management system continuously
through the regular audit of environmental protection activities.
6
We will provide public information on our environmental protection activities
and make every effort to enhance the quality of that information basedon close communication and mutual understanding.

2020 Environmental Vision
The USHIO Group has formulated a 2020 Environmental Vision looking beyond its 2010 Environmental
Vision. While continuing to work toward a lowcarbon, recycling-oriented society, we will identify
the specific contributions the USHIO Group can maketo achieve a society that supports biological diversity
in Phase Three of our Environmental Action Plan
(3-year plan) starting in fiscal 2010.

USHIO’s 2020 Environmental Vision

Through Lighting-edge technologies,
we will contribute to:• Creation of a low-carbon society• Conservation of resources• Preservation of biodiversity

7
Every employee of USHIO will contribute to realize a recycling-based society
through the awareness of each individual’s role in protecting the environment.
March 1, 2005
President and Chief Executive Officer(Chairman of the Environmental Committee)
USHIO INC.

http://www.ushio.co.jp/en/csr/eco/manage/vision.html

18

19

Environmental Measures

Environmental Measures

Phase Three of the Environmental Action Plan
When formulating Phase Three of the Environmental Action Plan, we started with our vision for the environmentand society for 2020, and extrapolated back in time to break down our vision into a set of specific goals (BackCasting). We also frequently exchanged opinions with each USHIO Group site in order to establish Action Plan
targets and objectives taking into account conditions specific to each region.

Environmental Themes
Environmental
management

Activities topromoteenvironmentallyconscious
product
performance

Fiscal 2011 Targets

Fiscal 2012 Targets

Identify issues at the Environmental Management
Representatives Council (EMR Council) and share bestpractices across the Group (domestic production sites)

Identify issues at the Environmental Management Representatives Council(EMR Council) and share best practices across the Group (all domestic sites)

Identify issues at the Environmental Management Representatives Council(EMR Council) and share best practices across the Group (all sites worldwide)

MeasuresFiscal 2010 Targets

Enhance USHIOGroup EMS

Carbon management

Disclose carbon accounting

Establish guidelines

Test implementation within the Group

Disclose carbon accounting

Expand lineup ofenvironmentallyconscious products

Enhance super green products

Develop super green products Group-wideGroup-wide: 5 products cumulatively

Develop super green products Group-wideGroup-wide: 10 products cumulatively

Develop super green products Group-wideGroup-wide: 15 products cumulatively

Reduce CO2
emissions fromproducts

Enhance eco-efficiency
Basis: Fiscal 2000

Enhance the eco-efficiency of core products by 15%

Enhance the eco-efficiency of core products by 20%

Enhance the eco-efficiency of core products by 25%

Materials 3R(Reduce, reuse
and recycle)

Improve the recycling rate forcertain materials
Scope: Tungsten

Establish materials collection systems
Establish designs that make products more easily reusable
Monitor materials collection results and consider numericaltargets for 2011 and beyond

Improve the recycling ratio

Improve the recycling ratio

Reduce CO2 emissions from energy usage(energy-saving measures)
Base level: Average annual emissions from fiscal
2006 to fiscal 2008
Scope: All Group companies

Reduce by 1% from base level

Reduce by 2% from base level

Reduce by 4% from base level

Reduce CO2 emissions from distribution
Base level: Average annual emissions from fiscal
2006 to fiscal 2008
Scope: Domestic Group companies and production
sites in Asia

Reduce by 2% from base level

Reduce by 5% from base level

Reduce by 10% from base level

Reduce waste emissions

Promote zero emissions

Promote zero emissions

Continue zero emissions

Improve the ratio of waste
volume to the total input ofcore materials
Basis year: Fiscal 2009
Scope: Lamp production sites
in Japan

Improve the ratio of waste volume to the total input
of core materials by 2 percentage points

Improve the ratio of waste volume to the total input of core materials by
5 percentage points

Improve the ratio of waste volume to the total input of core materials by
10 percentage points

Effectively utilize water resources
Input basis: Average annual
water usage from fiscal 2006 to
fiscal 2008

Reduce by 2% from input basis

Reduce by 5% from input basis

Reduce by 10% from input basis

Increase cooperation on
Group-wide CMS

Establish CMS for Group production sites and operate
CMS at domestic production sites

Operate CMS at overseas Group production sites

Establish CMS-related collaboration and shared framework within the Group

Enhance cooperation amongsupply chains

Establish guidelines for environmental impact
assessments of materials in use

Implement and conduct trials related to supply-chain communications onenvironmental impact assessments of materials in use

Establish information management systems for the environmental impact ofmaterials in use

Eliminate the usage of hazardous
chemical substances
Input basis: Average annual input
from fiscal 2006 to fiscal 2008

Selection of key chemical substances

Reduce key chemical substances by 5% from the input basis

Reduce key chemical substances by 10% from the input basis

Disclose environmental information

Continue publishing the Group Sustainability Report

Continue publishing the Group Sustainability Report
Prepare for the disclosure of environmental information for each Group company

Continue publishing the Group Sustainability Report
Disclose environmental information for each Group company

Stakeholder dialogue

Conduct environmental PR activities at exhibitions

Conduct environmental PR activities at exhibitions
Conduct a stakeholder dialogue

Conduct environmental PR activities at exhibitions

Social contribution
activities

Participate and conduct environmental and social
contribution activities

Expand participation in community environmental activities

Actively participate community environmental activities
Hold events related to environmental and social contribution activities

Participate and conduct environmental and social contribution activities

Preserve biodiversity

Evaluate and reduce the impact of business activities
on biodiversity

Establish guidelines for activities to preserve biodiversity

Conduct impact assessments

Generate feedback based on assessments

Expand lineup ofenvironmentallyconscious products

Phase Three of the Environmental Action Plan

Improving resource
productivity
Conserving resources

Raise resource
usage efficiency

Respond to global
regulations
Chemical substancemanagement system(CMS)Management of
hazardous chemical
substances

Enhance cooperation with Group
companies to implement theEnvironmental Action Plan

Communication withstakeholders
Environmental
and social
contribution
activities

20

Phase Three of the Environmental Action Plan

Strengthen
environmental
governance

Strengthen global
warming
countermeasures(energy-saving
measures)

Activities topromoteenvironmentallyconscious
operations(enhance
environmental
productivity)

http://www.ushio.co.jp/en/csr/eco/manage/plan.html

21

Environmental Measures

Environmental Measures

Environmental Management System

Global Warming Countermeasures
We have set goals for 2012 of reducing baseline CO2 emissions from energy consumption
by 4% and from logistical operations by 10%.

Group Organization Chart for Environmental Management

Green Products
Committee

Environmental
Committee(chaired byPresident)

3R Committee
Green Procurement
Committee

President

Formulation, Group-wide implementationand promotion of environmental plans

Eight Items for Enhanced Group
Environmental Governance (G8)
1. Environmental activities shall be conducted by all Group companies
2. The USHIO Environmental Action Plan shall apply to all Group companies
3. Activities in Japan shall be based on ISO standards, activities overseas
shall be based on ISO standards or independent EMS standards
4. Manufacturing companies shall adhere to ISO standards
5. The implementation status of environmental activities shall be verified
by internal audits (implement mutual audits)
6. Environmental communication shall be coordinated and conducted
through the Environmental Management Department
7. Environmental performance figures, environmental accounting andother environmental data shall be disclosed
8. Group environmental production activities shall be supported

CSR Department, Environmental
Management GroupUSHIO Green Network
Shares information among
21 subsidiaries worldwide

Environmental Management
Representatives Council(EMR Council)
Convenes to resolve issues related to theGroup’s EMS and share information
starting from fiscal 2008

Group Environmental Council(chaired by President)
Decides on the direction of matters related to
the USHIO Group’s environmental activities

Joint Training Session to Develop Internal
Environmental Auditors—Kanto Region
On August 27, 2009, a joint training session to develop internal
environmental auditors in the Kanto region was held at the
USHIO head office. A total of 11 individuals attended the event,including participants from Group companies such as XEBEX INC.
and USHIO LIGHTING, INC. The training session was previously
held over a two-day period. Starting in fiscal 2009, e-learning
was introduced for the first time, and on-site instruction was
reduced to only one day. Compared with previous years, timespent on exercises was increased to ensure effective training
activities.

Head Office
DivisionsGroup Companies (Japan)

Reducing CO2 Emissions from Energy
Consumption

Initiatives at Harima Division

We were not successful in achieving the target for USHIO INC. of
reducing emissions per actual unit of sales by 17% compared tofiscal 1990 levels. However, the USHIO Group did achieve its
target of a 6% reduction per unit of sales compared to fiscal
2005. Deteriorating economic conditions were a factor in our
failure to achieve the non-consolidated target. At the same time,
promoting greater energy efficiency, an effort led by the EnergySaving Working Group, resulted in the Harima Division improvingby 1.8% on a per unit basis compared to fiscal 2008.
CO2 Emissions per Unit of Sales
15,000178.5
13,775

10,000107.1
CO2 emissions(tons)

105.7

13,958

112.2

101.8

180
13,262

122.0

11,693
126.3

120
98.2

94.6

5,741

5,000

0

60

1990

2006

2007

2008

0

2009 (Fiscal year)■ Head Office, Sales Offices ■ Yokohama Division ■ Gotemba Division ■ Harima Division
CO2 emissions per unit of sales (results)
CO2 emissions per unit of sales (targets)

Carbon dioxide emissions by the Harima Division account forroughly 35% of the USHIO Group’s total emissions. The Harima
Plant is therefore working to reduce emissions, primarily in
production divisions, through efficient operation of production
facilities, and has been successful in making improvements on a
per unit basis. Specifically, the division has conducted the following initiatives.
1. Energy consumption was divided into energy used in production and energy used in administration. Initiatives wereconducted primarily by manufacturing departments for theformer and by three working groups for the latter (Ventilation/
Air Conditioning/Lighting Working Group, Energy Standardization Working Group, and Life Test/Aging Working Group).
2. In fiscal 2009, the Life Test/Aging Working Group led thefollowing efforts: CO2 reduction at the development stage
was discussed with technology departments, which use large
amounts of electricity for life tests, life test times, quantities;
grounds for power settings and judgment criteria were established for each product; and absolute targets were set.
3. Manufacturing departments began process patrols conductedby members of the TPM Group and representatives from the
manufacturing departments in order to identify items forenergy-saving initiatives. The Production Engineering Department, Administration Section and Environmental Management
Group joined the patrols as of the second half of fiscal 2009 inorder to incorporate different perspectives.
4. The Energy-Saving Promotion Council held monthly meetings
to discuss the activities of working groups and production
departments.
5. In December 2009, employees were called on to submit ideas
for improvements related to energy conservation, andemployees responded by making 509 proposals.

Global Warming Countermeasures

Environmental Management System

USHIO’s top
environmental body

Global WarmingCountermeasures
Committee

In tandem with leveraging each company’s distinct characteristics,
Group-wide environmental initiatives are exemplified by acommon direction based on the Eight Items for Enhanced Group
Environmental Governance (G8) formulated by the Group Environmental Council in February 2005. Since fiscal 2008, in addition to activities by the USHIO Green Network (UGN), we havebeen convening meetings made up of environmental management representatives from each site to share information andraise mutual awareness aimed at furthering the integration ofGroup environmental activities. Looking ahead to the formulation of Phase Three of the Environmental Action Plan, in fiscal
2009, we held more than 20 meetings with various groups
where we discussed proposals for the Environmental Action Plan
and cooperation on achieving the plan’s targets.

CO2 emissions per unit of sales (kg-CO2/million yen)

The Environment Committee, chaired by the company president,
is the top decision-making body for environmental activities at
USHIO. The Group Environmental Council, which is also chairedby the company president, determines the environmental policyof the entire USHIO Group. Meetings of the Group Environmental Council are held once a year and are attended by the CEOs ofeach Group company. Under the Environment Committee are
four environmental issue committees that promote activities at
the worksite level. Each decision made is relayed to each in-housecompany and Group company through the CSR Department andthe USHIO Green Network. Each division and Group company
promotes environmental activities independently and strives toachieve Group-wide targets.

Group Environmental Governance (G8)

CO2 emissions (tons)

System for Promoting Environmental
Management

Initiatives at Gotemba Division
The CO2 emissions of the Gotemba Division account for around
10% of the USHIO Group’s total. The division established theEnergy-Saving Committee in 2008, and the following year thecommittee was made an advisory unit for the Facilities Department,
which manages energy use for the division. The committee
promotes the following energy conservation initiatives.
1. Installation of power monitoring systems
2. Lunchtime workplace patrols by committee members (to checkthat lights and computer monitors have been turned off, etc.)
3. Staggered fluorescent lighting at offices
4. Establishment of night overtime area (limited office floors
allowed to keep lights on at night and restricted overtime
work to those offices)
5. Air conditioner temperature settings and displays (28°C insummer, 20°C in winter)
6. Automated control of compressors

Group Companies (Overseas)

http://www.ushio.co.jp/en/csr/eco/manage/system.html

22

Joint training held for internal environmental auditors

23

Environmental Measures

Environmental Measures

Green Products

Global Warming Countermeasures

We will strive to ensure that our activities benefit customers who use our products, while aiming to developSuper Green (SG) products and to achieve a 25% improvement in the eco-efficiency of products by 2012.

Initiatives at BLV Licht-und Vakuumtechnik GmbH

Reducing CO2 Emissions in Logistics Operations

BLV Licht-und Vakuumtechnik GmbH uses heat given off by life
tests on heat lamps to help heat its warehouses.
It is also establishing new standards for life test facilities
predicated on using the heat given off by lamps for 2 kW
stadium lighting.

USHIO INC. set a target of at least a 10% reduction in CO2 emissions from logistics operations and ended up achieving a reduction of 50%. This was the result of the Harima Division reducing
emissions by 32%, and the Gotemba Division by 70%.
Specifically, both divisions conducted joint transport, shortening domestic transport distances, and reducing deliveries by
consolidating loads.
USHIO INC. CO2 Emissions in Logistics per Unit of Sales
800

10.65
694

12.00

10.88
10.21
649

600

8.38

9.00

492

400

344

200

0

■ Emissions

6.00

3.00

2006

2007

2008

2009

0

(Fiscal year)

CO2 emissions per unit of sales (t-CO2/million yen)

USHIO America-Oregon Operation Division reviewed the lighting
facilities currently installed at its plant. Reducing power consumption has the largest impact on CO2 emissions reduction andit also helps lower costs. The plant therefore converted its current
four-foot fluorescent lights to energy efficient light bulbs handled
by USHIO AMERICA. The plant expects the new light bulbs toboth conserve energy and produce cost savings. At the Cypress
Office, it was decided to sign up a new online electricity consumption monitoring program, which was made available by the
local power company. Using the program the office will monitor
and analyze usage patterns in order to identify any items that
consume vast amounts of power and to see if the power consumption level can be linear throughout the day, not exceeding
200kW at any time. If we have three days or more per year of
power consumption exceeding 200 kW, the electric company
places us in a higher pricing bracket.

CO2 emissions (tons)

Initiatives at USHIO AMERICA, INC.

Per unit of sales

Initiatives Going Forward

CHRISTIE DIGITAL SYSTEMS is currently dealing with substantial
production increases associated with rapid expansion in digital
cinema projectors. In fiscal 2009, the Company conducted thefollowing programs to reduce power consumption per unit ofproduction by roughly 60% compared to the previous fiscal year.
· Shortened electrical testing times for products· Reduced use of natural gas through better insulation on
factory roofs, greater opacity for windows and higher thermal
efficiency at facilities· Heat given off during thermal load tests for projector products
reused as heating energy during the winter

1. USHIO INC. will extend successful initiatives between businesssites. We will add domestic Group companies to this framework at an early stage and work towards joint development.
2. We will create lists of successful energy-saving initiatives andlists of focus points for energy conservation in order to boost
the capacity of Group companies, including overseas affiliates,
to save energy.
3. We will encourage visual monitoring of energy usage at
Group companies.
4. We will reduce CO2 emissions from logistics operations byrevising loading ratios for charter deliveries, upping delivery
efficiency, and reviewing logistics in Asia.

At USHIO, we incorporate our Environmentally Conscious Product
Assessment Manual into our Design Standards so we can preevaluate the environmental impact of our products starting in thedesign stage. When the environmental performance of a producthas been improved based on this evaluation, it is certified as an
Environmentally Conscious Product. If a product is outstanding
even among environmentally conscious products, and uses innovative environmental technology on a completely different levelfrom existing products, it is certified as an SG product.
USHIO’s System of Environmentally Conscious Products

Development Road Map

Super
Green
Products

Environmentally
Conscious ProductsSuper Green Product Standards· 80 points or higher in environmentallyconscious product standards· Environmental factor of 1.5 or higher· Transparency assurance

Environmentally Conscious
Product Standards· Satisfies essential conditions· 60 points or higher· Factor improvement

Implementing LCA
No matter how much CO2 emissions are reduced at factories,
these activities are not meaningful if CO2 emissions increase
when the manufactured products are actually used by customers.
Meanwhile, products can provide both cost and environmental
benefits for customers if they use energy-efficient products.
Therefore, we must now quantitatively measure the environmental impact of products and services over the entire lifecycle, fromthe cradle to the grave. That is why USHIO formulated LCA
guidelines in 2006 and has implemented LCAs ever since. In
fiscal 2009, LCAs were implemented for all major USHIO lamp
products. Going forward, we will expand LCA activities to various
devices in order to satisfy the needs of customers.

Initiatives Ahead
During Phase Three of the Environmental Action Plan, we will
extend environmentally conscious products to Group companies,
expand the range of SG products, and implement LCAs of various devices, which have yet to be accomplished. Furthermore,
we will strive to ensure that these activities do not end within the
Company. We will step up initiatives that include development
and sales operations to increase our customers’ understanding of
our environmental activities.

Green Products

Global Warming Countermeasures

Initiatives at CHRISTIE DIGITAL SYSTEMS

Development of Environmentally
Conscious Products

Development of Super Green Products
Products eligible for certification as an SG product must be thebest in their class, while offering superior environmental performance in terms of energy efficiency, extended lifetime, 3R
design, materials used, applications and so forth. In addition, theproduct must satisfy our new environmental factor* requirement,
which was established to clarify our standards following a fiscal
2009 review of certification requirements in light of recent trends
in society. SG products that have passed a strict screening process are qualified to carry USHIO’s “Super Green Products” label.
* Environmental factor= (Power output ratio x lifetime ratio) √{(Input ratio)2 + (3R volume ratio)2 +(Chemical substance content ratio)2}

Super Green Products Label

http://www.ushio.co.jp/en/csr/eco/effect.html

24

http://www.ushio.co.jp/en/csr/eco/g-products.html

25

Environmental Measures

Environmental Measures

Conserving Resources

Environmental Communication

We regard it as a given that corporations have a responsibility to society to protect the environment and preserve
biodiversity. We therefore intend to improve our ratio of waste volume to material input by 10% by 2012 bylinking environmental initiatives with business performance. This will be accomplished by eliminating inefficiencies
through material flow cost initiatives, improving recycling rates for specific materials and other measures.

USHIO believes that it is important for individuals to take action on their own initiative, rather than relying onothers to step forward. This belief drives us to build a company that gives back to society.

Reducing Waste

California Coastal Cleanup Day

Light-Down Campaign

CHRISTIE DIGITAL SYSTEMS U.S.A., Inc. and USHIO AMERICA, INC.
jointly participated in the California Beach Cleanup Day, whichcelebrated its 25th anniversary. (Cleanup events are held on thethird Saturday of September every year.) From the EMS team, 20
members participated in coastline and riverbed cleanup activities
sponsored by The Save Our Beach Organization. The participants
worked hard to clean a beach, riverbed and marina at three sites.
On the beach, some unusual items were found, including asingle shoe, an old doll’s head and a pair of crutches.
On this day, approximately 70,000 volunteers across the stateof California collected 412 tons of trash, including approximately
41 tons of recyclable resources.

USHIO participated in the “Carbon Dioxide (CO2) Reduction/
Light-Down Campaign 2010” organized by the Ministry of theEnvironment. As part of the campaign, USHIO turned off thelighting for its main outdoor signage and advertising displays
during designated periods. Held from June 20 to July 7, the campaign was highlighted by the “Black Illumination 2010” event on
the June 21 summer solstice and the “Tanabata Light-Down”
event to mark the traditional Japanese Tanabata festival on July 7.
On both days, the campaign called on people to simultaneously
turn off lighting at facilities illuminated at night and households
from 20:00 to 22:00. In other developments, we are promoting
the importance of environmental activities both within and outside the company through a “CoolBiz” program (air-conditioner
settings maintained at 28°C), and other initiatives.

We reduced waste processing costs of domestic Group companies
by 29.8% versus fiscal 2008, as we successfully achieved our
final target. At the Harima Division, we worked to turn waste intoa valuable resource, reduced processing costs and utilized material
flow cost accounting to improve the waste ratio for quartz glassmaterial by 18%.
Waste Volume(t)(t/100 million yen)

1.09

2,000

1.10

1,649

1,500

1.08

1,213

1,000

1,283

Recycling Program
In August of fiscal 2008, CHRISTIE DIGITAL SYSTEMS USA
reviewed its recycle programs to date to improve their functionality.
The Company further clarified procedures for achieving targets
and created two types of new documents (container recycling
guidelines and solid waste processing procedures). The initiativewas called EMP (Environmental Management Program) Number
02. The Company is currently involved in EMP No. 4, checking on
progress made on targets since that time and revising programs
accordingly. As a result of its efforts, CHRISTIE DIGITAL SYSTEMS
has succeeded in greatly reducing waste volume.

1.00

1.00
0.96
515

0

2006

Continuing from fiscal 2008, we have been focusing on applying
MFCA for lamp manufacturing processes. In fiscal 2009, initiatives
were led by the Energy Conservation and Loss Cost Reduction
Committee, to extend MFCA to all production divisions at theHarima Division. Quartz glass waste was successfully reduced by
18% by resizing cut tubes, making changes to grips in lamp
processing and revamping processing methods. We are striving
not only to reduce the amount of waste itself but also to raise
environmental productivity by sorting waste that is produced
and effectively using it as a valuable resource.

1.05

1,424

500

Implementation of Material Flow Cost
Accounting (MFCA)

379

386

2007

2008

■ Waste volume ■ Final disposal volume

352

0.95

0.90

2009 (Fiscal year)

Waste volume per unit of sales

Lamp Recycling

Initiatives Going Forward
We plan to extend material flow cost accounting to lamp-relatedsites and improve the ratio of waste to material input by 10% inthree years. We will also promote effective use by sharing wasterelated information and work toward zero-emissions status at all
domestic sites. At overseas sites as well, we will continue to raise
our rate of effective utilization.

USHIO INC. Harima Division employees participate every monthin local woodland maintenance at Benzaiten Mountain in
Kakogawa City as part of volunteer activities organized by the
non-profit organization, the Hyogo-moriclub. Participation by
employees’ family members is welcomed by members of the
Hyogo-moriclub, and energizes the site of volunteer activities.
We strive to raise awareness so that the importance and enjoyment of volunteer woodland maintenance activities are conveyed
to as many employees as possible. For example, monthly activity
reports are distributed in USHIO’s in-house environmental email
newsletter “Eco no Kaze (Eco Wind).” Our extensive photogallery has also proven to be popular. The gallery features photosof hillside maintenance activities that have opened new pathways for breezes, and photos of plants, insects and other aspectsof nature at Benzaiten Mountain. Despite these low-key recruitment efforts, a total of 34 volunteers participated in activities infiscal 2009. In addition, USHIO employees who are also membersof the Hyogo-moriclub participate as instructors in the “Forest
Building for Companies” program supported by Hyogo-moriclub
as well as a workshop for forest management volunteers organized by Hyogo Prefecture.

RecycleReuse as a resource

Used lamps

Use lamps

USHIO INC. (Harima Division)

RecoveryDisassemble

End of life

Transport box

Pulverize/sortMoviegoers

MOVIES

Reuse
Harnesses

Distributors

Electrodes

Production (designed for recycling)
Unused lamps

http://www.ushio.co.jp/en/csr/eco/resource.html

26

RecycleProtective cases

On Earth Day (April 22), the “Green Team” of CHRISTIE DIGITALSYSTEMS CANADA, INC. held an exhibition to raise awareness ofenvironmental activities and present its activities to employees.
On display at the exhibition were electrical vehicles (batterypowered cars) made by local high school students with thesupport of CHRISTIE DIGITAL SYSTEMS CANADA. These vehicles
will participate in a driving distance competition. With the teamof students in attendance, a discussion session was also held inwhich opinions on various topics were exchanged. Examples ofother activities included
adding an organic refuse
bin for “food residue” tothe trash sorting and recycling bins in the Company’s
offices and holding a presentation on their use, as
well as a picture contest
for depicting the growth of
CHRISTIE DIGITAL SYSTEMS CANADA Earthtree saplings distributed at
Day eventlast year’s Earth Day event.

21st Century Forest

Xenon Lamp Recycling Flowchart (In Japan)

Customers (Movie Theaters)

Earth Day Event

Environmental Communication

Conserving Resources

A recycling program was started in 2007 for super-high-pressure
UV lamps for semiconductor and LCD exposure operations. We
have since also launched a recycling initiative for xenon lamps for
projection equipment. Xenon lamps contain valuable xenon gas
and tungsten, a rare metal. Lamps collected by the program areturned into products or returned to society through 3R activities.

Forest Volunteer Activities

Working together with Hyogo-moriclub

Reducehttp://www.ushio.co.jp/en/csr/eco/communication.html

A total of six employees from NIHON DENSHI GIJUTSU CO., LTD.
participated in undergrowth cutting at 21st Century, an event
organized by the Kanagawa Trust Midori Foundation. Undergrowth is cut with a sickle, but first-time participants need notworry because an instructor is on hand to carefully guide themthrough the process.
The event was held in
August under a strong
summer sun in sweltering heat, but theplanned undergrowthcutting work was safely
completed without
any injuries.
Participation in undergrowth cutting at
21st Century

27

Financial Reporting

Third-Party Opinion
Sustainability Report 2010

Key Performance Indicators

Masaatsu Doi

Net sales

Operating income/Operating income ratio(Billions of yen)(Billions of yen)

200

20
151.4

150

148.1

129.2

15
120.8

19.7

Net income/Return on equity (ROE)
(%)

20.0

20

18.5
14.3
13.0

13.5

(Billions of yen)

20

15

15

10

10

5

5

10.7

14.8

(%)

12
10.3
9.4

16.5

9

15.4

119.0

100

10

8.9
7.4

5

50

6.1

6

4.7

7.2
2.3

7.0

3

3.4

0

2005 2006 2007 2008 2009 (Fiscal year)

0

Total assets/Equity ratio(Billions of yen)

(%)

300
250
200

70.7
213.0

71.5
237.5

74.3

90

2005 2006 2007 2008 2009 (Fiscal year)
Operating income ratio

184.4(Billions of yen)

(Yen)

10.0

100

30

50

15

120

7.6
6.8

5.0

6.7

4.8

4.6

5.1

5.4

5.8

5.5

0

2005 2006 2007 2008 2009 (Fiscal year)

Total assets

Equity ratio

120.16107.81

(Yen)

24

25
20

90

52.95

30

2005 2006 2007 2008 2009 (Fiscal year)

Capital expenditures

20
15

60

0

20

112.96

4.8

2.5

0

24

150
20

60
45

Return on equity

Net income per share/Dividends per
share

7.5

150

2005 2006 2007 2008 2009 (Fiscal year)

Net income

76.8

202.1

0

Capital expenditures/R&D expenses

75

216.6

0

0

Operating income

78.5

Associate Professor
Faculty of Regional Policy
Takasaki City Universityof Economics

R&D expenses

0

25.76

10
5
0

USHIO’s Sustainability Report 2010 is highlighted by a structureemphasizing the importance of people, the environment, andCSR activities, while retaining the “triple-bottom line” approachto economic, environmental and social performance consideredin previous reports. In particular, the feature section of the report
adopts a format whereby input was gathered from individual
employees at the Company’s business sites. This format is inaccordance with the USHIO tradition, since employees are thefirst consideration in the Company’s management philosophy.
The corporate message that USHIO is committed to fulfilling CSR
management goals at the Company-wide level comes across well.
On the environmental front, from the current fiscal year theCompany has formulated the USHIO Group’s Third Environmental Action Plan, incorporating both its past successes and reflections on earlier environmental action plans, including unmet
targets in several areas. From this standpoint, the Company’senvironmental initiatives can be said to be growing stronger withevery passing year.

The current discussion in CSR concerns not only whether acompany’s business activities contribute to society in their own
right or how profit should be returned to society, but also thenature of core businesses themselves and how they are operated.
In other words, the real question is “What kinds of businessprocesses are implemented to generate profit?” In that sense, inthis report it is somewhat difficult to see how CSR is incorporated into USHIO’s business processes. The same is true of theCompany’s expressed commitment to returning profits to society.
For example, with the social contribution activities mentioned on
pages 16 and 27, reader understanding would be further
enhanced by an explanation of the basic policies that guideefforts to contribute to communities.
In order to achieve these improvements, I believe that USHIO
must clearly present a basic CSR policy and core principles for
CSR activities, establish annual targets and strategies for social
categories, similar to those found in the Third Environmental
Action Plan, and ensure that these priorities are implemented byeach relevant department. I would also like to see communication with stakeholders and social contribution activities reframed
as a discussion covering the breadth of CSR, rather than limiting
the discussion to the environment, as on page 20. These processes cannot be achieved overnight. Nevertheless, as USHIO
takes full advantage of dialogue with stakeholders and otherobjectives for fiscal 2011 as outlined in the Third Environmental
Action Plan, I hope to see core CSR discussions deepen at theCompany-wide level.

2005 2006 2007 2008 2009 (Fiscal year)

Net income per share

Dividends per share

Response to Third-Party Opinion
Overseas Sales
Asia

North America

Europe(Billions of yen)(Billions of yen)(Billions of yen)

50

50

20
44.1

Financial Reporting

41.3

40

35.8
31.9

37.8

15.9

39.3

40

30

30

20

20

10

10

0

0

29.9

27.7

27.5

10

28

2005 2006 2007 2008 2009 (Fiscal year)

14.7

15

34.5

13.2

14.2

10.3

5

2005 2006 2007 2008 2009 (Fiscal year)0

2005 2006 2007 2008 2009 (Fiscal year)

We appreciate the frank and valuable feedback received from Dr.
Masaatsu Doi, Associate Professor of the Faculty of Regional
Policy, Takasaki City University of Economics on our Sustainability
Report 2010. A new Environmental Vision was established in thecurrent fiscal year. Based on the USHIO Group’s Third Environmental Action Plan, we will redouble our efforts to make aunique contribution to the environment.
This year, we reported on our approach of having every
employee bear social responsibilities in the course of their daily
duties in order to fulfill the USHIO Group’s CSR management
philosophy. The commendation we received for reporting on thisapproach is a source of encouragement for all of us.

In the current fiscal year, we will conduct surveys to gauge
employee awareness and identify priority issues that we should
address as part of active efforts to conduct CSR activities that are
fully integrated with our core business. Going forward, we
intend to build a solid track record in this area by further developing this framework, and by conducting repeated PDCA cycles
in accordance with a clear vision and plan.
For next fiscal year, Dr. Doi has suggested that we need toreport more clearly on such activities for incorporating CSR into
our business processes. We will certainly strive to produce thereport in line with this helpful advice.

Seiji Oshima
Director,
Corporate Executive Vice President,
Chief Financial Officer
Officer in Charge of CSR

29

The Things You Can Do with Light!
Sometimes it feels as if technology is moving forward at the speed of light,
getting smaller, faster, and more precise every day.
Light is helping to solve some of the problems this dizzying pace of change causes.
Light—more indispensable than ever.
USHIO the light creation company—more promising than ever.
Lighting the Way to the Future: USHIO.

For further information on USHIO or our products,
please contact the Company’s head office or visit our website:

http://www.ushio.co.jp/global
Environmental Consciousness of this Publication
This publication is printed on paper approved by the Forest Stewardship Council
at a green printing certified plant using waterless printing, which is highly effective in reducing volatile organic compounds (VOC). In addition, the computer-toplate (CTP) method of printing is used to eliminate the intermediary materials
required for the plate-making process.

Environmental Management Group
Corporate Social Responsibility Department
Administration Division
2-6-1, Otemachi, Chiyoda-ku, Tokyo 100-8150, Japan
E-mail:kankyo@ushio.co.jp

1010G -3000S

Printed in Japan