CSR Report 2010

CSR Report 2010

Medium-term Vision

Become a truly global company
Nissha (Nissha Printing Co., Ltd. and its group companies) started implementing the Third Medium-term Business Plan in
April 2009. We are working to enhance our personal capabilities, strengthen our organizational structure, and upgrade ourbusiness management so as to befit a global company in an effort to maximize enterprise value and achieve the medium-term
vision “Become a truly global company”.
The medium-term business plan is also a story of growth, which all employees implement in an aim toward our goal.

Corporate Mission

We are committed to pursuing a mutually trustful
Co-Existence with society through our businessactivities utilizing a unique technology
development, based on PRINTING as a core.

Management Policy

Code of Conduct• Technology Oriented• Passion

Maximizing our business value by continued technology

Passion for quality resulting in customer satisfaction

development and engineering excellence• Proactive• QCDS and Speed for Customer Satisfaction

Action driven by a proactive culture

Customer satisfaction through quality, cost, delivery,
services and speed• Can-do Spirit
Succeeding by believing and executing excellence• Maximize Enterprise Value
Capital efficiency and optimization• Global CitizenshipTo practice ethical and fair spirited behavior• Environmental Management
Global environmentally oriented solutions, products andactivities• Learning and Growth
Continuous improvement by supporting human capability
and training• Communication and Teamwork
Effective communication and efficient teamwork

CSR Report 2010

Approach to CSR (Corporate Social Responsibility)
Nissha identifies the stakeholders that support its operations as Customer, Shareholder, Supplier, Society and
Employee. We are implementing CSR activities to help preserve the Earth’s environment and support future
generations in keeping with our commitment to these stakeholders.
Nissha divides its corporate social responsibilities into “internal CSR” and “external CSR”. We have set specificitems in the medium-term business plan to cover issues in both internal and external CSR areas, and are
implementing strategic initiatives to tackle these key performance indicators.

External CSR
Business-oriented

Society-oriented

CSR activities throughour business operations

Social contribution throughour business operations

Quality Assurance, Environmental Preservation, Information Security
Personnel Systems, Development of Human Resources,
Employee Welfare and Benefits, Safety and HealthCorporate Governance, Corporate Ethics, ComplianceInternal CSR

Editorial Policy

Contents

The CSR Report 2010 has been compiled with the objective of disclosing to our

2Company Outline/Business Operations

numerous stakeholders, including customers, information regarding Nissha’s

4

Executive Message

initiatives and business performance in the fiscal year 2010 (April 1, 2009-March

6

The Third Medium-term Business Plan

31, 2010).

8

Corporate Governance Structure

The information contained in this report is in accordance with the guidelines listed

9

Initiatives to Ensure Observance of Corporate Ethics and Compliancebelow, and is also based on several corporate evaluation questionnaire topics.

10

CSR Initiatives in Manufacturing

13

Report on Social Aspects

Period Covered and Scope of Reporting	Customer/Shareholders and Investors/Suppliers/Society andCommunities/Employees

Period covered: Information and numerical data contained in this report, in principle,
covers the period from April 2009 to March 2010. Some reporting has also been done

22

regarding activities carried out after April 2010. Numerical data has been compared	Environmental Policy and Environmental Management Structures/

Environmental Aspects

with corresponding data for the three-year period between April 2007 and March 2010.

Environmental Objectives and Status of Achievement/Environmental

Scope of reporting: The information and numerical data contained in this report mainly

Impact as a Result of Nissha Business Operations/Energy Conservation

focus on activities conducted by Nissha Group. Where information for the entire group

and Measures to Help Prevent Further Global Warming/Waste
Management and Zero Emissions

is not available, the scope of reporting has been indicated separately in footnotes oneach relevant page.

28	Distribution of Added Value to Stakeholders/CSR Report Reading• Nissha refers to Nissha Printing Co., Ltd. and its group companies. The Headquarters

29

Workshop
Independent Reportand affiliated companies, such as Nissha Intersystems Co., Ltd., located within the
Publication date June 2010

headquarter premises are collectively referred to as the “Headquarters”.
• Technical terms and other terminology unique to Nissha have been explained within

Next publication (planned) June 2011

the text or in separate footnotes throughout the report.
• The Nissha CSR Report is published every year, and is also posted on the company

Division in charge of publication and contact details

website.

Nissha Printing Co., Ltd.
Corporate Communications, CSR

Guidelines used as reference

Tel: +81-(0)75-823-5143— Environmental Reporting Guidelines 2007, issued by the Japanese Ministry of
the Environment— Sustainability Reporting Guidelines 2006 (Global Reporting Initiative)Company Outline

Nissha is providing valuable products and services to its customers andsociety at large through proprietary technologies developed based on
printing as its core area of business.
Nissha was founded by Naoki Suzuki in Kyoto, Japan, in 1929 with theaim of "creating a company that specializes, at an unparalleled level, in
sophisticated photographic printing rather than the more commonplace
typesetting”. Based on this founding principle, Nissha gradually
expanded business activities by applying the technical expertise it
acquired in the field of artistic printing to various other fields.
Currently, Nissha conducts operations in three business fields—
Industrial Materials, Input Devices, Information and Communication.
The Industrial Materials business accounts for 45.0% of total income,while the Input Devices business and the Information andCommunication business contribute 38.5% and 16.5% respectively(fiscal year 2010 financial results).
Nissha has also stepped up global expansion of business operations. In
the fiscal year 2010, 68.5% of total sales were from overseas businessactivities. Nissha’s current overseas network comprises 25 sales andproduction bases in different parts of the world.
Nissha will continue to develop innovative technologies that will evolvewith the times to provide ever greater value and satisfaction.

Net Sales
120,000(million yen)
100,000

127,767

126,9652009

2010(FY)

101,649

80,00060,00040,00020,00002008

Operating Income
16,77016,302

15,000(million yen)
11,257
10,000

5,000

0

2008

2009

2010(FY)

Ordinary Income

Company Name: Nissha Printing Co., Ltd.
Headquarters:
3 Mibu Hanai-cho, Nakagyo-ku, Kyoto 604-8551, Japan
President and CEO: Junya Suzuki
President and CEO, Representative Director of the Board
Founded on:
October 6, 1929
Established:
December 28, 1946
Number of Permanent Employees (as of the end of March 2010):
3,728 (on a consolidated basis);1,023 (on an unconsolidated basis)
Capitalization:
5,684,790 thousand yen

15,58015,49415,000(million yen)

12,061

10,000

5,000

0

2008

2009

2010(FY)

Breakdown of Consolidated Sales in Fiscal Year 2010

Map of Nissha’s Worldwide Bases

1) Breakdown of sales by business

Copenhagen
LondonKristianstad
Oulu
Helsinki
Dusseldorf
Ulm

Information andCommunications

Seoul

Beijing
KunshanShenzhen
ChennaiHong Kong
Kuala Lumpur

Sales bases
Production bases

16.5%
Kyoto
Gumi
ShanghaiTaipei
Guangzhou

Vicksburg
Chicago Detroit
San Jose
AustinTokyo
Osaka
NagoyaKobe
Chiba
Kameoka
Koka
Tsu
Kaga
Himeji
Kumihama

HoustonInput Devices

38.5%

Industrial Materials
Consolidated sales
in fiscal year 2010

45.0%

126,965(million yen)

2) Breakdown of sales by region

Overseas68.5%

2010 (FY)In Japan

31.5%

Business Operations

Industrial Materials Business
Nissha’s market-leading decoration
technologies ensure superior design,
beauty of form and functionality.

CSR Report 2010

Surface decorations are an integral part of products in the world’s markets today. They provide
identity to the myriad of items making up our daily lives, such as personal computers, mobile
phones, home appliances, automotive parts, and even cosmetic packaging. Nissha IMD
enables the simultaneous transfer of color, pattern, and even functional ink to various plastic
products at the molding stage, and is thus more eco-friendly and offers greater cost benefit
compared to paint. Through continuous evolution of material, molding, printing, and shaping
technologies in response to the latest trends in designs and functions of industrial materials,
we are consistently expanding the application range of our decoration technologies.
Major Products• Nissha IMD (Simultaneous Molding and Decorative
Film Transfer System)• Nissha IML (Simultaneous Molding and Decorative
Film Insert System)• Heat Transfer foil
Major Applications• Personal computers, mobile phones, home
appliances, automotive parts, and cosmetic
packaging etc.

Input Devices Business
Nissha’s cutting-edge input devices
expand personal horizons, future, andfreedom with a touch of the finger.

Major affiliated companies• Nitec Industries, Inc. (Kameoka, Koka and Tsu
factories)• Nitec Mold Engineering, Inc. (Kameoka andKumihama factories)• Eimo Technologies, Inc.
• Southern Nissha Sdn. Bhd.
• Guangzhou Nissha High Precision Plastics Co., Ltd.
• Nissha (Kunshan) Precision IMD Mold Co., Ltd.

Touch input devices facilitate the manipulation of information and functions by a simple
touch. Nissha FineTouch is at the forefront of the touch input technology, and is widely usedin mobile phones and digital devices, opening new possibilities in communications, business,and entertainment. TouchWindow combines the features of FineTouch with Nissha’s
decoration technologies, to deliver beautiful, user-friendly flat-panel displays.
Going beyond touch-input functionality, we are also proposing new concepts for design andapplication of touch input devices.

Major Products•D ecorative Resistive-type: FineTouch “Touch
Window”, FineTouch “Classic”• Capacitive-type: FineTouch “Capacitive”

Major affiliated companies• Nitec Precision, Inc.
• Nitec Precision and Technologies, Inc.
• Nissha (Kunshan) Precision IMD Mold Co., Ltd.

Major Applications•M obile phones, portable gaming gears, electronic
dictionaries, car navigation systems, note book PCs,
digital cameras, video cameras, PND etc.

Information and Communication BusinessCollecting, utilizing and communicating
information, Nissha provides comprehensive
project and strategy solutions.

Interactive media fully exploits the features of the Internet and mobile communications. RealSP media supports sales promotion activities originating directly from stores. Printing mediadelivers powerful expressions through advanced printing technologies, and art solutions
integrate high-precision imaging technologies. Drawing on our unexcelled command of thesetools, we give shape to information, increase its value, and communicate it by the mosteffective means, produce new and more useful information. From marketing to promotion
needs, we provide one-stop support for all aspects of our customers’ communication
strategies.
Major Products• Printing & Publishing• Commercial Printing• Sales promotion• Art solutions• Planning & Production

In September 2009 Nissha became a constituent member of the FTSE4Good Global
Index, one of the leading socially responsible investing (SRI) indices for companies
worldwide.
The FTSE4Good Global Index is provided by the FTSE Group, a British company jointly
owned by the Financial Times and the London Stock Exchange, and consists ofcompanies whose CSR initiatives meet global standards in such areas as environment,
climate change, human rights, bribery prevention, and labor standards at supply chains.



Major affiliated companies• Nitec Printing Co., Ltd. (Kyoto and Yachiyo factories)• NCP Co., Ltd.
• Nissha Sales Promotion & Products Co., Ltd.
• Nissha Interactive Corporation

Executive Message

Nissha will always keep in mind thevirtues of integrity and strive to achieve
Co-Existence with society at large.

Junya Suzuki
President and CEO
Representative Director of the Board

CSR Report 2010

the PDCA (plan-do-check-act) cycle to swiftly adapt tochanges in the business environment.
With regard to dialogue with Nissha’s stakeholders, we
believe that the establishment of the Corporate
Communications Division in fiscal year 2010 has helped us
promote enhanced IR activities and improve communication
with local communities.
We are also fortifying communications with our suppliersin hopes of building win-win relationships and working
together to respond to customer needs in the global market.
Nissha will continue to live up to our stakeholders’expectations by being open to their requests and views andstriving to realize optimal communications.

The Third Medium-term Business Plan
Fiscal year 2010 rolled off to a thunderous start amid thelingering influences of economic stability originating in the
global financial crisis two years ago. In the Third Mediumterm Business Plan spanning from this rough fiscal year
2010 to fiscal year 2012, we have established “Become atruly global company” as our medium-term vision.
Generating maximum profits in the global market requiresthat we form the sense of values and capabilities that live up
to competitive markets, and that we continually strive forreform. Under the Third Medium-term Business Plan, we
have set about tackling structural reform toward the goal to“Become a truly global company”.
Fiscal year 2010 also marked the 80 th anniversary of
Nissha’s establishment. We have designated this year
Milestone 80, an important milestone that spurs thecompany’s growth into the future, and launched various
reform initiatives such as technology awarding systems tofurther enhance the tradition of Nissha’s technologyoriented culture, and new human resources management(HRM) systems that aim to achieve growth for employees aswell as the company.
The financial results of fiscal year 2010, however, were
not nearly satisfactory.
A major cause for the drastic drop in profit ratio was thatcost reductions could not fully absorb declining sales prices
brought on by the slow recovery in demand. With our highest
priority on improving customer satisfaction, we will aim to
maximize profits in individual business units, and thecompany will work as one to restore profitability.
Being under intense pressure to lower the prices of
products and services, Nissha recognizes that the markets
surrounding the company have yet to exit the deflation.
Under the circumstances, we believe it is important to adapt
our strategies to the “new normal” economy in which
demand and customer preferences are inclined to fluctuate
quickly, and expand business operations with a strong
awareness of securing a competitive advantage in the Asianmarkets.

Consideration for the Environment
We recognize that Nissha’s various CSR initiatives aimed
at the environment are attracting more attention fromstakeholders than ever before. We feel particularly strongly
about the need to inventory and grasp the impacts and risks
that global warming imposes on the company. At the sametime, considering it important to embrace global warming as
a new business opportunity, we are accelerating thedevelopment of environment-friendly products that reducegreenhouse gas emissions, regarding which related divisions
are currently taking measures to respond to rising demandfor disclosure from investors.
Further, we have started to prepare initiatives to help
preserve biodiversity. We will explore the possibilities that
relate to Nissha’s operations through the Guidelines for
Biodiversity Initiatives set up at the beginning of fiscal year
2011.

In Conclusion
In the Third Medium-term Business Plan, achieving the
medium-term vision to “Become a truly global company” isof paramount importance to Nissha’s survival in thecompetitive global market. To achieve this vision, all Nissha
People must be mindful of improving their personalcapabilities from a globally oriented perspective and that
their work style is constantly being watched. In other words,
it is essential that we stand on corporate ethics andcompliance and be aware of our commitment to ourstakeholders, and that we put our own safety first ininvigorating the workplace and approaching our work with
passion.
As a global manufacturing company, Nissha will always
keep in mind the virtues of integrity and strive to achieve CoExistence with society at large into the future.
We look forward to your continued understanding andsupport.

Communication through Dialogue and Action
Fiscal year 2011 is the second year of the Third Mediumterm Business Plan. While we will continue to tackle CSR
issues through the strategic implementation of the Corporate
Mission, the medium-term business plan is a blueprint thatindicates the gap between the type of company Nissha
ought to be and its current state, and draws up a plan to fillthat gap. The plan sets forth implementation items
pertaining to CSR issues as well as a road map and numericaltargets toward our goals, under which it is crucial that we useMedium-term Business Plan

The Third Medium-term Business Plan
Nissha views CSR initiatives as the strategic implementation of the Corporate Mission. Our initiatives underthe medium-term vision “Become a truly global company” started in April 2009. Here we introduce an
excerpt of the implementation items of the medium-term business plan (strategies) related to CSR, alongwith our self-evaluation of the items.
Medium-term
visionCategory

Major issue

Major implementation item for FY2010

Improving comprehensive risk
management functions

Corporate governanceImproving operations management

ev

Upgrade risk management systems
Consider company-wide disaster prevention systems
Reinforce internal controls
Improve levels of information security management

Expediting financial reporting and Contract financial reporting processes
strengthening response to internal
controls
Review internal controls with installation of ERP

Become a truly global company

Enhancing the Nissha complianceReinforce collaboration between corporate divisions and bases
Corporate ethics and systemcompliance
Promoting management that
Observe compliance/Thoroughly adhere to rules
facilitates fair trade

Customer

Provide stable supply of products
Improving QCDS (Quality, Cost,
Enrich customer support and service systems
Delivery and Support) and speed
Improve speed/flexibility
Providing high value-added products

Provide products in line with customer needs
Increase and enhance the quality of meeting opportunities

Shareholder

Promoting IR

Supplier

Conduct supplier factory audits/Conclude basic transaction contracts with
Implementing strategic procurement/ major suppliers
Researching purchased materials
Promote CSR procurement/Concentrate procurement functions/Hold training
and technology briefing sessions

Society

Promoting communication with
Hold environmental workshops and other communicative events
communities

Enrich IR tools

Implement training by position (managerial staff/general employees)
Reinforcing personnel development

Implement selective human resources development
Implement global/divisional human resources development

Employee

Improving communication skills

Raise employees’ capabilities through continual/reinforced development
supportPromoting employee relations

Enrich Publication Information “IN” and intranet “NisshaPortal”

Building/implementing new HRM Implement/establish HRM system for managerial staff
systems
Revise/consider systems for general employees and affiliated companies
Promote labor measures to stabilize organizational administration
P r o m o t i n g l a b o r m a n a g e m e n t Enrich employee welfare and benefits
measures suited to changes in business Thoroughly implement safety and health measuresenvironment
Enrich Nissha healthcare systems
Expand implementation of re-employment system for retired employees
Develop environment-friendly products
Reinforce environmental responses (VOC [Volatile Organic Compounds]
emissions)
Reinforcing environmental responses

Reduce CO2 emissions
Unify management of industrial waste processing companies within Group

Environment

Respond to changes in society’s environmental demands (preserve biodiversity)
Raise level of zero waste emissions
Install energy conservation systems
Preparing company-wide energy
Install clean energy systems
conservation equipment
Refine management of improvements through visualization

Self-evaluatioCSR Report 2010

About the Third Medium-Term Business Plan

Daisuke Inoue
Corporate Strategy Planning
Department Manager,
Corporate Strategy* Excerpt of BSC “strategy items”

Selfvaluation

Ref.

A

P8

Strengthen/standardize risk management functions

A

P8

Strengthen disaster prevention functions

A

P8

Respond in advance to the Companies Law, Financial
Instruments and Exchange Act, stock exchange rules andguidelines

A

P14

Reduce information security risks

A

P8

Reinforce internal controls (prepare and promote
implementation of work processes)

A

P8

Reinforce various accounting functions with installation of ERP

C

P9

Improve overall compliance standards (collaborate with businessdivisions)

B—

Promote trade management enhancement projects

Major implementation item for FY2011

B

P13

Provide stable supply of products

A

P13

Enhance response to customers

B

P13

Improve speed/flexibility

B—

Provide new and function-added products

A

P15

Promote communication with institutional investors

A

P15

Promote communication with individual investors

B

P18

Enhance supplier management systems

A

P18

Promote CSR procurement

A

P16, 17

Implement environmental workshops/Promote bases’
communication with communities

A

P20

Implement human resources development by position and
expected role

B

P20

Strengthen business-oriented mindsets in selected personnel

C

P20

Implement global human resources development

A

P20

Raise employees’ capabilities through development support

A—

Promote two-way internal communications

A

P19

Develop effectiveness measuring indices for and monitor
implementation of new HRM systems

A

P19

Integrate human resources evaluation systems and strategies

C—

Improve employee satisfaction by supporting work-life balanceA

P21

Reinforce internal publicity of employee welfare and benefits

A

P21

Implement safety and health improvement measures

A

P21

Prepare healthcare systems

A—(Maintain)A

P12(Maintain)

B

P24(Maintain)

C

P25

Reduce CO2 emissions

A

P26

Reduce wasteA

P22, 27B

P26(Maintain)

A

P25(Maintain)

A

P25(Maintain)C
on standards

Nissha draws up a medium-term business plan
every three years, making the current plan we are
implementing since fiscal year 2010 the Third
Medium-Term Business Plan.
In formulating the business plan, we first set a
medium-term vision of the type of company
Nissha aims to be, and then considered thestrategies to fill the gap between this vision and thecompany’s current state. We have established“Become a truly global company” as the ultimate
company-wide medium-term vision.
For Nissha, a truly global company is one whose
presence and value are recognized in the global
market and which can Co-Exist with society atlarge as a global citizen. In order to realize ourideal, we consider it crucial for all the company’s
internal capabilities, ways of thinking, functions
and organizations to live up to global standards.
We organize and manage the progress of
specific strategic targets using a performance
management tool called Balances Score Card
(BSC). The BSC is distinctive in that it comprises
not only financial targets but also targets from
customers’ and other stakeholders’ points of view,and determines strategies from such perspectives
as internal processes and employee training andgrowth. Examples of Nissha’s strategic targets infiscal year 2010 are given in the table on the left.
Nissha’s value-added products that met
customer needs earned a reputation and led toincreased demand in the global market in fiscal
year 2010. Our business environment remains
harsh, nevertheless, as we were forced to lower
selling prices to accommodate the declining pricesof the final products due to the prolonged
stagnation of the global economy. Nissha aims tocounter this trend and achieve our medium-term
vision by streamlining production processes and,as a technology-oriented company, further
fortifying research and development and personnel
training.

Promote preservation of biodiversity—
Identify/prepare required function at each base
A: Accomplished B: Mostly accomplished C: Did not accomplishCorporate Governance Structure

Shareholders’ Meeting
Appointment
Termination

Appointment
Termination

Appointment
Termination

Management Supervision / Creation of Strategies
Board of Directors

9 Directors (including 2 Outside
Directors)

Audit

Board of Corporate
Auditors

4 Auditors (including 2 Outside
Corporate Auditors)

Auditors’ Office

Audit

Internal Audit Office

President and CEO

Representative Director of the Board

Investment Committee

Disclosure Control Committee
Corporate Ethics and Compliance Committee
Quality System Committee
Environmental System Committee
Information Security Committee
Safety and Health Committee
Risk management Committee

Management Meetings

Corporate Officers

Customer Satisfaction
Enhancement Committee

Audit

Accounting Auditor

Business
Execution

Business Units / Corporate Strategy / Administration / Subsidiaries

Corporate Mission / Management Policy / Code of Conduct / Brand Statement
Corporate Governance Structure

Reinforcement of the Internal Control System
Nissha is preparing structures to ensure proper conduct ofbusiness based on the Policy for Internal Control and inaccordance with the Companies Law and the Ordinance for
Enforcement of the Companies Law in an aim to reinforce its
internal control system.
We have also worked to build structures in tandem with
our response to the internal control reporting system
introduced by the Financial Instruments and Exchange Act
to ensure reliability and legitimacy in financial reporting andthe disclosure of other important matters towardshareholders and investors. To eliminate errors and omissions
from such documents as marketable securities reports andquarterly financial reports, for instance, we have prepared aprocedure for creating the documents and confirming theircontent, and thoroughly abiding by a set of rules in which the
documents are approved first by the Disclosure Control
Committee and then by relevant managerial staff before
disclosure.

are registered by risk item and the relevant unit.
In our deliberations about a Group-wide disasterprevention system, we have installed an earthquake alert
system in the Headquarters that sounds an alarm
throughout the Headquarters’ premises prior to earthquakesof level 4 or above on the Japan Meteorological Agency
seismic intensity scale. Each workplace has concurrently
worked to prepare earthquake response standards.
Initiatives of the Internal Audit Office
The Internal Audit Office serves as a separate entity frombusiness execution units to audit whether business activities
are carried out appropriately and efficiently in accordancewith the medium-term and annual auditing plans andensure impartiality and objectivity in internal auditing
functions.
In fiscal year 2010, the office implemented financerelated internal control audits as prescribed by the Financial
Instruments and Exchange Act and business operation audits
selected by risk approach. It provided feedback to relevant
units regarding issues that surfaced through the audits alongwith suggestions for improvement, and conducted follow-up
audits as needed to verify the effectiveness of the
improvement measures. The office reports all the results of
its audits to the President and CEO, and presents importantmatters at the Monthly Business Review meetings attended
by Corporate Officers. In addition, it holds meetings with the
President and CEO once a month for reporting based on the
BSC (Balanced Score Card), and with corporate auditors twicea month and with accounting auditors as appropriate in aneffort to share information.

Risk Management
In fiscal year 2010, Nissha made efforts to improve
comprehensive risk management functions.
Our risk management system involves carrying out
semiannual investigations on the Nissha Group-wide basis tocheck for changes in the status of risks. The Risk
Management Committee verifies the content of theseinvestigations and the responses being made to the risks forreporting to the Board of Directors and the Board of
Corporate Auditors.
We have strived to share risk awareness throughout theGroup by creating various opportunities for risk
communication under the policy of “bad news first”. While
the Risk Management Committee, which overseas the entire
Group, has used various systems to manage risks that requirea Group-wide response, we plan to make modifications
whereby risks with a direct bearing on specific business lines

Remuneration for Executivesst
The 91 marketable securities report contains thefollowing information.
Total amount of remuneration for directors (excluding
outside directors): 247 million yenInitiatives to Ensure Observance of Corporate Ethics and ComplianceCorporate Ethics and Compliance Declaration
In order to respond in an appropriate manner to increasingsocietal awareness regarding the observance of corporate
ethics and to emphasize a shared understanding of the issue
within the Group, the Corporate Ethics and ComplianceDeclaration comprised of ten compliance requirements wasdrafted in 2008 based on the Policy for Internal Control We
post the ten requirements of this declaration on posters atbases in and outside Japan in an effort to thoroughlyfamiliarize and encourage practice of corporate ethics andcompliance throughout the Group.

CSR Report 2010

Compliance Study Meetings
Recognizing the need for all Nissha People to observe andpractice corporate ethics and compliance, and in line with
one of the major issues of the medium-term business plan“building a Nissha compliance system”, in fiscal year 2010
to 2011 we appointed an education supervisor at all bases inand outside Japan under the direction of corporate officers
and held study meetings based on a manual compiled by the
Corporate Ethics and Compliance Committee Secretariat.
We are currently preparing asystem to implement
participant awarenesssurveys and respond to anddiscuss their views andquestions after each study
meeting.

Corporate Ethics and Compliance Declaration

We hereby declare that we fully understand the importance of the words “wideranging co-existence with society based on trust” that are raised in the corporatemotto of the Nissha Group, and that all directors and employees will work on themaintenance and improvement of corporate ethics and the practice of compliance inorder to put that motto into practice.
1. Observance of laws and regulations	We respect not only laws and regulations but also social norms, and pursue
sound and sensible corporate activities.
2. Respect of human rights
	We respect human rights and do not discriminate against, bully or harass others.
Furthermore, we act in accordance with laws and regulations related to thehandling of private information and do not disclose information relating topersonal privacy without due cause.
3. Environmental protection	In the research, development, manufacture, sale and disposal of products, wealways comply with treaties, laws and regulations concerning environmental
preservation, and strive to protect the environment.
4. Free and fair competition	We observe laws and regulations relating to the securement and promotion offree and fair competition in business activities, conduct business transactions
based on the motto of co-existence and fulfill our social responsibilities.
5. Product safety	We always keep safety in mind when manufacturing, developing, importing,storing, selling, transporting and exporting products. We fully understand andobserve laws and regulations relating to the safety of products as well as safety
standards.
6. Control of insider trading	We observe related laws and regulations in regard to the corporate informationof the Nissha Group and along with disclosing information promptly andappropriately, we also pay attention to its accuracy, fairness and continuity.
	Also, in regard to the control of important information related to Nissha andother listed companies, we strive for the prevention of insider trading and neverpursue unfair transactions.
7. Workplace health and safety	We strive for the maintenance of a safe and hygienic workplace environment. In
the event of an industrial accident, we will make efforts to minimize the damage
and prevent reoccurrence.
8. Appropriate information management
	We take extremely good care in the management of confidential information sothat such information is not disclosed to others without permission nor used forany purpose other than that intended.
9. Intellectual property protection
	We take extremely good care so that other people’s intellectual property is not
used without permission and if acquiring intellectual property for the company,
do so through the proper channels.
10. Severing relations with antisocial forces	We take a firm stand against antisocial activities and forces and never enter into
any relations with them.

Nissha Hotline
To minimize risks and promote ethical conduct andcompliance, as well as to enable the company toimmediately verify facts, Nissha has established a system forinternal reporting in the event of fraud, illegal activity orunethical conduct by either the organization or an individual
employee. The Nissha Hotline, a dedicated telephone line
enables reporting from within the company and fromoutside.

Person Making the Report
Identity disclosed

Identity disclosed
Investigation, response
Unidentified caller

Hotline (External)

Hotline (Internal)

Corporate lawyer

Corporate Ethics and Compliance Committee Secretariat

Unidentified reporter

Unidentified reporter

Corporate Ethics andCompliance Committee

Corporate Auditor

Board of Directors
System Diagram of the Hotline

Compliance Promotion Structure
Nissha holds Corporate Ethics and Compliance Committee
meetings each quarter to report on the implementation
status of such initiatives as compliance study meetings andresponses made to matters reported through the Hotline (wehold meetings to respond to and discuss urgent matters as
they arise). In fiscal year 2010 we established an antidrinking and driving month and an emphasize respect forhuman rights month, and held campaigns such as bypublishing feature articles on the company’s portal website.
We will continue to implement regular internal
compliance study meetings, review our training programs,
and periodically share information with education supervisors
at each base in an effort to further fortify our compliancepromotion structure.

Hotline Usage
Since its establishment in 2006, the Nissha Hotline has
been used 15 times. Many of the reports concerned humanrights.
Employees can also continue to report instances to their
immediate supervisor or to the person in charge at Corporate
Human Resources. From the perspective of reinforcing ourcompliance structure, however, Nissha recognizes the needto establish a hotline system that can sufficiently cope withthe current number of employees and business sites,
enhance employee awareness of the system, and improve
the system’s level of response.

CSR Initiatives in Manufacturing
Nissha embraces CSR as a business-oriented solution toenvironmental and social problems. This section focuses on CSR
initiatives in manufacturing within our three businesses ofindustrial materials, input devices, and information andcommunication.

Nissha IMD
Nissha uses two types of resin to enable designs with a senseof depth.
Nissha IMD is a contracted method of surface decoration thatdelivers excellent yields in the plastic molding stage to reduce waste
and enable the efficient use of energy. With a thin ink layer thatsignificantly reduces VOCs (Volatile Organic Compounds) in thefinished product and other environment-friendly features, Nissha
IMD is a method of choice for many customers. Here we introduce a
decoration using two types of resin, or double molding decoration,
which was conceived to meet the demand for a sense of dimension
amid increasing competition for differentiation.
HP Mini 110 by Studio Tord Boontje

10

Sensor Modules
Nissha contributes to intuitive controlling and freedom incommunicating information.
Sensor modules are products that integrate capacitive-type touch
sensors with plastic molded components and glass components thatuse Nissha’s decorative films. The patterns are difficult to discern toproduce superior levels of display quality. By supplying the sensor
modules affixed to cover parts of IMD or glass products, Nissha
contributes to stable inputting, the slimlining of products, and highlevels of readability in addition to fine decorations. Here we introduce
an example supplied in four colorways.
NEC N-01A

11

Ino Chuzu, Part 5: Chubu Region (Partial Middle-scale Map of Japan by Ino Tadataka found in France) property of
Nissha Printing Co., Ltd. (formerly owned by Mr. Yves Peyré)

Image photographed in eight sections

Single image achieved by combining the sections

Documenting, Archiving and Inheriting
Nissha’s high-definition digital archiving technologies use photography and contribute to documenting and passing
down cultural assets.

Nissha recognizes that making progress in the high-precision, high-definition digital archiving of precious cultural
assets is an important issue in society. In digitizing large-sized and elaborate historical materials, we have made it
possible to reproduce minute details in their original proportions by correcting aberrations in color and distortions in
the camera lens, and combining sections of the work not in 2D but in 3D. Nissha’s digital archiving technologies
that deliver a well-balanced, optimal composition of the five quality requirements of resolution, symmetry, color,density and form provide solutions for passing down cultural assets and having them utilized by future generations.

Nissha Joint-Develops and Starts Sample Shipments of DyeSensitized Solar Cells
In September 2009, Nissha succeeded in developing dye-sensitizedsolar cells (DSC) with outstanding durability in partnership with the
Shimane Institute for Industrial Technology (SIIT). We aimed to adhere
to environmental management, one of the pillars of Nissha’s
Management Policy, and make full use of Nissha’s unique printing
technology in developing solar cells, which are gaining attention as aform of energy that reduces the burden on the global environment.
We have achieved commercial viability in terms of durability, a weak
point in conventional DSC, and by selecting pigments made it possible
to display a wider variety of colors. Combining this with Nissha’s
unique technologies has facilitated the designing of colorful solar cells.
We started shipment of sample products in 2010.

12

CSR Report 2010

Report on Social Aspects Customer-oriented Initiatives

As a manufacturing company, Nissha considers its most important mission to be the provision of high quality
products that are safe and reliable to use. We are implementing several initiatives to ensure overall product quality,
taking into consideration not only functions and a beautiful finish, but also safety features.

that initial response is made within 24 hours of receiving theenquiry. All information regarding customer enquiries isstored in a digital database. Relevant employees within thecompany can quickly access this information and confirm
the status of investigations and response via the Intranet
using the Nissha Quality Report (NQR) system.
We also hold regular meetings with our customers to
discuss quality-related issues and are implementing optimal
quality assurance activities. Quality managers from Japan are
assigned to our bases in China (Shanghai, Beijing, andShenzhen) and India (Chennai) to enable speedy responses
to customers in the respective countries. Further, onsite
internal meetings are held with representatives from ourbases in Europe and North America. Nissha is thus constantly
in tune with customer needs.

Nissha Quality Assurance Structure
Nissha is promoting company-wide quality assurance
measures to provide customers with products they can safely
use.
Quality assurance structures (see figure below) have been
put in place in the Industrial Materials and Input Devices
Business Unit to enable appropriate and speedy responses tocustomer enquiries. The sales division, that is the contact
point for customers, immediately reports any enquiries it
receives from customers to the Quality Management. Under
the guidance of the Quality Assurance, response measures
are investigated jointly with relevant departments. The
Quality Control then sends out instructions to all production
bases and the Quality Control group established within eachproduction base takes immediate action. Nissha ensures

Marketing and Sales

Customers
Enquiries

Quality Assurance

Overseas Assignment
Shanghai, Beijing, Shenzhen, Chennai

Onsite Meetings

Quality Management
Quality Control

Technical Support

Quality Control Group
within each Plant

Production Engineering

Quality assurance structures of the Industrial Materials and Input Devices Business Unit

responsibility, we formulated the Quality Policy in 1997 thatput forth to the whole company Nissha’s basic stance on
quality as a priority management issue.

Control Criteria for Environmental Management SubstanceIn the fiscal year 2007, Nissha formulated its Control
Criteria for Environmental Management Substance thatclearly specifies the various substances prohibited from use
and those whose usage must be regulated. By implementing
these standards, Nissha aims to ensure thorough compliancewith relevant rules and regulations, reduce environmental
impact, and lessen the harmful effects on living organisms,
including human beings. The management standards havebeen set at a level that meets customer expectations, andare revised in a timely manner to respond to changes inthose expectations.

• Quality Policy
Nissha and its subsidiaries are committed to widely contribute to
global society by providing products and services economically thatgain customer reliance and satisfaction.
1. We establish and maintain a quality management system, andcontinually improve its effectiveness.
2. We provide products which satisfy customer requirements andconform to relevant legislation and regulations.
3. We achieve our quality objectives economically, and fulfill
customer satisfaction.

Quality Policy
As a manufacturing company, consistently raising thequality of products manufactured at its plants is of utmost
importance to Nissha. It is our mission to constantly live up
to the trust that consumers, the end users of our products,
place in us by responding to their needs and expectations.
Based on the awareness that enhancing and maintaining
quality is an important aspect of the company’s social

Acquisition of ISO9001 Certification
Almost all Nissha production bases in Japan and overseas
have completed the acquisition of ISO9001 certification, theinternational standard for quality assurance. In line with
ISO9001 standards, we are operating an objective quality
management system based on facts and figures and areworking to make continual improvements to quality.

13

based management, raising each employee’s awareness is
crucial to information security, and accordingly has in placeand implements education programs by position such as for
new employees and for more experienced workers. We
periodically publish these
initiatives in the “Information
Security-related Incidents”
newsletter and also introduce
them on our portal website
in an effort to raise employee
An internal training program in progressawareness.

Information Security Policy
The creation of security structures for the safe handling ofvital information assets, such as personal and otherinformation provided us by customers, is an issue of foremost
importance at Nissha. We have established a highly reliable
and secure information security management system andare committed to maintaining and further improving its
effectiveness. The Information Security Policy (first
formulated in 2005) expresses our fundamental approach
to information security. We are working to enhancecompany-wide awareness of this policy through the Intranet,
workplace displays, and other measures.

Reinforcement of Personal Information Management
One of Nissha’s subcontractors experienced an accident inJanuary 2010 in which a notebook PC containing personal
information collected from a customer by the supplier wasstolen along with other home appliances. The notebook PC
was password protected, and we have not received a reportabout leakage of the personal information, which consistedof an incomplete list of subscribers to an e-newsletter
operated by the customer. Nissha called in a report to police
immediately after being informed of the theft, reported
about the incident and apologized to the e-newsletter
subscribers after first consulting with the customer, and also
filed a report to the presiding Ministry of Economy, Trade andIndustry.
Viewing the accident as a significant issue, Nissha hastaken measures to prevent recurrence by further reinforcing
management of its suppliers.

Information Security Policy
Nissha and its subsidiaries are committed to establish, maintain,
and improve a highly reliable and secure information security
management system to protect our own business information andthe information assets, which we acquire from customers, suppliersand employees, etc., through our business activities performed inJapan, from any kinds of threat. And we take internal and external
information security requirements into consideration and reduce allrisks below the acceptable levels.
1. We continually improve the Information security management
system by establishing, implementing, and reviewing theinformation security objectives, so that the confidentiality,
integrity, and availability of information can be maintained andimproved.
2. W e comply with legal and regulatory requirements for
information security and with contractual security obligations.
3. We establish and improve the criteria for reasonably evaluating
risks concerning information security as well as the risk
assessment methods, to mitigate risks and to maintain theinformation security levels that contribute to corporate
development.
4. We make the Information Security Policy known to all employees
working in the premises of Nissha and its subsidiaries to raise
their awareness of the issues related to information security.

Commendations for Nissha Products
The HP Mini by Studio Tord
Boontje (black and silver),notebook PCs produced with
Nissha’s IMD foil, have won
an IF Design gold award,
which recognizes superior
design f r om among theworld’s industrial products.
HP Mini 110 by Studio Tord Boontje
Honda Acura’s Door Trim
manufactured by EIMOTechnologies, a subsidiary of
Nissha USA, has beencommended by customer Ts
Tech.

Initiatives Related to Information Security
Nissha is striving to improve its information security
management system to respond to customers’ and society’s
expectations toward information security and rises in levelsof convenience and risk due to progresses in information
technology.
To respond to issues that have become obvious
throughout society, we have issued Information Security Risk
Prevention Guidelines with which each business unit inspects
its risk management status and promotes preventive
measures. And to respond to issues that are hidden aroundus, we are implementing risk assessment from multiple
angles in an effort to raise the level of our measures.
Nissha believes that in addition to physical and system-

Trophy from Ts Tech

14

CSR Report 2010

Co-Existence with Shareholders and Investors

Nissha discloses information in a prompt and timely manner to enhance understanding of the company and ensure
appropriate evaluation of its enterprise value. We make opportunities to directly exchange dialogue with ourshareholders and investors as well as promoting communication through various information tools.

Information Disclosure Policy
Nissha discloses corporate information in a prompt andtimely manner, with due consideration to the accuracy,
fairness and continuity of information disclosed, so as topromote understanding of the company among shareholders
and investors, and garner an appropriate evaluation of thecompany’s enterprise value. We have in place a Disclosure
Control Committee, which undertakes decision-making
related to the disclosure of information. Further, by providing
feedback to senior management regarding evaluation byshareholders and investors of the information disclosed,
Nissha is working to raise enterprise value.

We are also focusing on enhancing the contents of our
website as a means of disclosing information in a fair andspeedy manner. In addition to various IR materials, thewebsite has a “What’s Nissha?” page
with easy-to-understand introductions
to our business fields and a “Nissha IR
News Mail” service that sends updates toregistered email addresses.
http://www.nissha.co.jp/ir

Shareholders’ Meeting
Nissha sends out early notices of convocation, adopts theinternet exercise of voting rights, and participates in theElectronic Voting Platform for Institutional and Foreign
Investors in consideration of convenience for shareholders
exercising their voting rights.
In 2009, we scheduled our shareholders’ meeting
deliberately avoiding the dates on which other companies
hold their meetings, and attracted a larger than usual
attendance of shareholders.
We made an effort to visualize business reports and in otherways make explanations easier to understand, and for the firsttime held a tour of the headquarters’ facilities after the meeting.

Proactive Implementation of IR Activities
Nissha holds approximately 500 meetings a year withinstitutional investors in and outside Japan in an effort tomaintain continuous communication. We explain about thecompany’s businesses and strategies through such events asfinancial results briefings four times a year (including two
telephone conferences) and factory tours.
In order to provide information to overseas investors in a
speedy manner as well, we disclose English-languageve r s i o n s o f s u c h documents aspresentation material for financial
results. We also publish annual
reports, fact books and otherinformation tools, and attach great
importance to overseas road shows,conferences and other opportunities
in which to directly exchange dialogue.
(Fiscal year 2010 implementation
regions: US, UK, Switzerland, Singapore) Annual Report 2009

Dividend Policy
Based on the fundamental policy of continuing to pay stabledividends to its shareholders, Nissha will determine the rate forthe current and future fiscal terms taking wide-ranging factors
such as business performance, payout ratio, and the financial
state of the company into consideration. Regarding effective
utilization of internal cash reserves, the current focus is on
investments in facilities and R&D in areas of high growth, with aview to enhancing enterprise value in the medium- to long-term.

We are working to enhance communication withindividual investors through various events. In fiscal year
2010, we exhibited at the IR Fair in September 2009 andheld four company briefings at securities companies’ branch
offices in Tokyo and Osaka. We held a company briefing andfacility tour for the first time in March 2010, where we
invited investors to Nissha’s headquarters to visit the productshowroom.

IR Fair“Investors” page

Shareholder Composition (as of the end of March 2010)
Total number of shares issued: 45,029,493
Number of shareholders: 12,355
The number of shareholders
Treasury stockincreased by more than 5,000,
4.0% Financial
Individual
investors,
institutions
centering on individual investors,
other
and
investment
from the end of March 2009 to
18.5%
companies
Overseas
the end of March 2010. In thecompanies,
35.4
%
other
breakdown by shareholder
16.1% Other Japanesecompanies
holding size, the ration of shares
26.0%
owned by “individual investors,
other” increased by 4.3 percentage
Status of Breakdown by Shareholder
points.
Holding Size (Ration of shares owned)

Company briefing and facility tour

15

Initiatives in Collaboration with Society and Communities
Nissha emphasizes first fulfilling its basic responsibilities as a company, second implementing social contribution
activities as a constructive company, and ultimately keeping these two wheels in motion in an aim to deepen mutual
understanding and achieve mutual growth with local communities. In an effort to better communicate with local
communities, we will listen to the voices of their members and work to resolve issues together.

Basic Policy
Proposing New Ideas for Co-Existence with Local
Communities
Nissha perceives local communities as a constituent ofNissha’s Circle of Trust. We are setting forth initiatives that
aim for the company to be not only a reliable member ofsociety in the eyes of community members but also a
constructive company within society.
Based on a strong awareness of the importance of
exchanging dialogue, in fiscal year 2010 we set the goal of
proposing new ideas for Co-Existence with local
communities and launched communication activities. Thiswas because we recognized that the first step in realizing “amutually trustful Co-Existence with society” stated in Nissha’s
Corporate Mission was to communicate with members of
the local communities closest to us.

what we can do in the perspective of Co-Existence with thelocal community, and ultimately on moving forward while
keeping these two wheels in motion.
We perceive basic responsibilities as matters that must be
abided by necessarily as a member of society, such as
reducing environmental impacts that arise from businessactivities and coping with issues related to employee morale.
These are also efforts aimed at corporate ethics andcompliance, which are required to be managed atsustainable high levels throughout the Nissha Group.
Social contribution activities, on the other hand, involve
verifying the issues and needs of a given community andmaking efforts to respond to them. Our goal is to be aconstructive company that is needed by society.
Neither basic responsibilities nor social contribution
activities alone can achieve Co-Existence with society. The
important issue for Nissha is to always lend our ears to thevoices of local communities and while keeping the twowheels in motion.
Each of Nissha’s production bases is currently reviewing its
basic responsibilities in the relevant community and verifying
what urgent responses to implement if necessary, andconcurrently promoting communication to grasp thecommunity’s needs to carry out social contribution activities.
The following page introduces a handful of their activities.

Setting in motion the two wheels of basic
responsibilities and social contribution activities
Specifically, we have appointed a Local Communication
Promotion Commissioner at each production base, prepareda structure under which to implement initiatives in line witheach community and, in the second half of fiscal year 2010,
set unique goals for each base and started promoting
activities. In promoting the activities, we focused strongly firston basic responsibilities, or the duties any company ought tofulfill in society, second on social contribution activities, orFramework for Promoting Communication with Local Communities
Basic Responsibilities

Social Contribution Activities• Grasp the circumstances ofeach base• Respond according to thecircumstances– Briefings– Factory tours– Networking, etc.

• Investigate local contribution
needs• Select activities that can be
implemented– Environmental workshop forelementary schools– Collaboration with NPOs, etc.

Deepen mutual understanding and achieve mutual growth with local communities

16

CSR Report 2010

Examples of Specific Activities
areas. In consideration of the circumstances, thefactory has provided the space in front of its main
entrance as bus stop for kindergarten shuttles,
contributing to the safety of members of the local
community. It has also
asked the neighborhood
community association
for help in submitting arequest for the government
to place a crosswalk on
this street, helping to an
A kindergarten shuttle utilizing the bus stopeven safer community.

Environmental Workshop for Elementary Schools
Nissha’s employees visit elementary schools mainly inareas around our production bases in Japan and conduct
environmental workshops. In fiscal year 2010, we gave
workshops to approximately 700 children in 12 schools.
The initiative started in 2007 from an awareness that
although, as a manufacturing company, we make efforts topreserve the global environment as a matter of course, weshould also spread our feelings of consideration for theenvironment to the communities. We have given workshops
to approximately 1,700 participants at 26 schools to date.
We teach the children through quizzes and work groups
about the mechanism of global warming and about
separating waste, and think about environment-friendly
activities in which we could lend a hand. Drawing on ourstrengths as a printing company, we also conduct a fun
session demonstrating how “dots” create the different colors
on printed matter and studying the various techniques usedin the printing process under the theme “The Secret Behind
Printing”.
The Nitec Industries Tsu Factory conducted environmental
workshops at three elementary schools in November 2009,prior to its starting operationsin April 2010. While fostering
an environmentally friendly
mindset in the future
generation, it has taken a large
step toward communicating
An environmental workshop for anwith the community.

Machikusa Workshop(“Wild Town Plants Workshop”)
In January 2010, Nissha and non-profit
organization Kids Meet Artists jointly held a
Machikusa Workshop for students of Uji City Todo
Second Elementary School. Under the direction ofartist Shinpei Shigemoto, aka Doctor Machikusa, thechildren observed weeds growing in the streetsaround their school, gave the weeds original names,
photographed them, and made presentations of theirfindings to each other.
Nissha later compiled photographs of theworkshop into a booklet and delivered copies to eachparticipating student. The workshop became a fun
opportunity for the children to think about the naturalenvironment that surrounds them and also to learn
about the mechanisms of printing.

elementary school

Cleaning Activities Around Nissha Factories
The Kameoka Factory in Kyoto Prefecture – whichaccommodates Nitec Industries, Nitec Mold Engineering,and the Molding Technologies Development Center – cleans
the streets between Japan
Railway’s Namikawa Stationand the factory, which
Nissha employees use, andthe areas around the factory
once a month from a wish to
express gratitude and give Cleaning activities in the factory’s
surrounding area
back to the community.
Provision of a Bus Stop for Kindergarten Shuttles

The Nitec Printing Yachiyo Factory is located in thecentral area of Yachiyo City, Chiba Prefecture, where in
the past several years developers have built anincreasing number of residences in the surrounding

Top: The Machikusa Workshop
bookletRight: Activities conducted in
the workshop

17

Initiatives in Collaboration with Suppliers
Procurement and Sourcing implemented various initiatives in fiscal year 2010, the first year of the Third Mediumterm Business Plan, in an effort to reinforce strategic purchasing that further compliments Nissha’s businessactivities. This section introduces major initiatives.

Promotion of CSR Purchasing
In March 2010, Nissha held CSR procurement briefings
for 66 material suppliers with which the company concludes
more than 90% of its purchasing transactions. We explained
about Nissha’s company outline and business performance,
the backdrop to our promotion of CSR purchasing and, giving
specific examples, each section of the newly drafted Supply
Chain CSR Purchasing Guidelines.
The briefings became a valuable experience for us as well,as it gave us the opportunity to hear about many of our
suppliers’ own initiatives. We sought the understanding ofparticipating suppliers regarding the purpose and content of
the guidelines, and asked them to sign and seal a letter ofconsent for submission.
In the future, we hope to
expand the scope of CSR
purchasing to outsidecontractors and eventually
to our entire supply chain so
as to fulfill the social responsibilities required of a A CSR procurement briefing session
global company.

Establishment of Tighter Partnerships with Suppliers
Procurement and Sourcing has been reviewing thecontents of and concluding new Basic Supplier Agreements
in an effort to further strengthen partnerships with our
suppliers and promote strategic purchasing. The agreements
cover all issues from quality assurance to safety and health,environmental preservation and the protection of personaland confidential information in accordance with the Basic
Purchasing Policy. The initiative, which began in September
2008, has involved examining suppliers’ factories whenneeded. This has enabled us to observe various initiatives
centering on quality assurance and environmental
preservation, and in one case even firefighting training inwhich the community, the local fire department and the
supplier worked as one, where we witnessed the supplier’s
high awareness for safety
and its strong connection
with the community.
We will continue to makeefforts to strengthen partnerships with our suppliers
and work as one to meet Observance of a firefighting training
sessioncustomer needs.

Basic Purchasing Policy (Established in April 2009)
For the achievement of the Corporate Mission, “We are committed to pursuing a mutually trustful CoExistence with society through our business activities utilizing a unique technology development, based on
PRINTING as a core”, we at Nissha are always committed to creating enterprise value by establishing thepartnership for Co-Existence and co-prosperity with suppliers and carrying out mutually fair procurement.
We at Nissha evaluate suppliers impartially, fairly and comprehensively, based on the following points.
Stable business foundation and reliable business attitude
Excellent technology development and supply abilities
Flexibility to adapt to changes in the business environment
Safety of products and services, stable quality and lead time and competitive prices
Supply chain management aimed for business continuation
We at Nissha promote CSR procurement by working with suppliers on the following points.
Full consideration to the global environment
Observance of laws and regulations and raising corporate ethics
Respect of fundamental human rights
Promotion of labor safety and health
Maintenance and improvement of information security level
Information disclosure
Fair tradeSocial contribution

18

CSR Report 2010

Initiatives in Collaboration with Employees

Nissha has restructured the company’s HRM (Human Resource Management) systems. We began operating a new
system for managerial staff in fiscal year 2010, and that for general employees in fiscal year 2011. Under the new
systems, we are aiming to achieve growth for both the company and our employees.

overseas employees has reached one-fifth of our total
workforce.

Structuring and Operation of the New HRM Systems
Nissha restructured its HRM system for managerial staff in
April 2009. In an aim to promote a correct understanding of
the objectives and operational rules of the new system, we
have implemented internal training programs at each baseinvolving target setting and evaluation. The training sessions
covered the purpose of personnel evaluation, how toappropriately set targets, andwhat points to keep in mind
during evaluation so as tocultivate an awareness about
the operation of a fair andhighly convincing system.
The Human Resource A target-setting training session
Management System Review Committee has taken theinitiative in exchanging views with the labor union andholding discussions regarding the new personnel system forgeneral employees. In April 2010, we started operation of asystem shared throughout the Nissha Group in Japan, whichaims for enhanced growth and motivation in each employee.
We have also reorganized various allowances in line with
the new systems, newly incorporating allowances for childrearing support and subsidies for qualification acquisition,and increasing the amount paid as allowances for dependent
family members, for a new salary system that helps to
support diversifying work styles.

Ratio of female employees(as a percentage ofpermanent employees)

MaleFemale

72.8%

27.2%

Permanent

Temporary

79.9%

20.1%

Japan

Overseas Ratio of overseas employees

79.2%

20.8%

Ratio of temporary employees(as a percentage of the total
number of employees)(as a percentage of the total
number of employees)(scope of data: Nissha)

Promotion of Work-Life Balance
In April 2009, Nissha was approved to be a generalbusiness owner that conforms to the standards of the Next
Generation Nurturing Support Measures Promotion Law.
One of our male employees returned from ayear and two month’s child-rearing leave in2009 and continues to work shorter hours
for child-rearing, an indication that ouremployees’ awareness is beginning to“KURUMIN mark”
change as well.
Examples of Work-Life Balance Support Systems(1) Child-rearing leave: Leave granted until an employee’s childturns two years old(2) Shorter hours for child-rearing: Work time shortened by twohours per day until an employee’s child finishes the fourth gradeof elementary school(3) Family care leave: Leave of up to total 240 working days perfamily member who requires care(4) Shorter hours for family care: Apart from family care leave, work
time shortened by two hours per day for up to total 480 working
days per family member who requires care [effective April 2010](5) Accrued non-statutory annual paid leave: Leave granted, forexample, for illness of a family member (5 days/year) andparticipation in a child’s school event (3 days/year)

Notable aspects of the new HRM system for general employees(1) Six grades are reorganized into four (roles and responsibilities
are clarified)(2) Basic salary is divided into qualification-based and (fundamental)
age-based salaries(3) Personnel evaluation is based on performance-related
responsibilities, basic conduct-related responsibilities, andcapabilities displayed

Rate of paid
leave taken

Number of employees
who took time off fromwork for child-rearing

Number of employees
who worked shorter
hours for child-rearing

Number of employees
who took time off fromwork for family care leave

47.8%

17

20

1

Status of long-term leave and time taken off from work during the fiscal year 2010

Newly incorporated allowances, etc.
Short-term incentives for highly evaluated employees
Incentives paid each half-year to employees who were highly
evaluated while keeping the number overtime hours undercontrol
Subsidies for qualification acquisition
Subsidies paid to employees who acquired a specific qualification,
appropriate to the qualification acquired, in order to support
growth for employees
Allowances for child-rearing support
Fixed allowances paid for events such as childbirth and the child’sentry to a new school, as part of Nissha’s initiative to help realize
work-life balance(scope of data: Nissha group in Japan)

Ratio of Disabled People Employed at Major Group
Companies (As of the End of March 2010)
The Nissha Group will continue to create jobs by preparing
workplace environments and spreading understanding about
employment for disabled people.
Nissha Printing

NII

NME

NPI

1.36%

2.11%

1.27%

2.4%

Status of Temporary Production Workers Since Fiscal
Year 2010

Diversity of Nissha People
Nissha employs a wide variety of people crossing theboundaries of gender, nationality, age, location of work, andemployment status. In recent years, female employees areplaying an increasingly larger role, while the number ofConverted to permanent
employee: 80

Converted to contractor: 231

Left Nissha: 81
Total: 392(scope of data: Nissha group in Japan)Initiatives in Collaboration with Employees

Fortification of Human Resources Development
Nissha believes that its employees are its most importantmanagement resources. We are aiming to achieve growthfor both the company and our employees by actively
supporting the growth of each individual employee anddeveloping human resources who are equipped with the skills
and experience required to work at Nissha.

Basic Approach to Human Resources Development
Nissha approaches human resources development in thethree areas of “planned human resource development”, “skill
development” and “career development”, and aims topromote comprehensive programs for each area comprisingtraining programs, on-the-job training (OJT), medium- tolong-term career path development, and the preparation of
personnel systems to support these programs.

Strategy
promotion
The human
resource system

Plannedhuman
resource
development

Nissha cultivates and secures the necessary
human resources in planned fashion in orderto realize the company's management vision(including long-term strategy, business
continuity, creating an atmosphere, etc.)

Career path

Individual people develop their skills in order
to increase their market value.

Forming the foundations

By supporting such activities on thecompany side, we increase the humanresource power of the company.

Skill development

Guidance(OJT)

Training system
Nissha supports the mid- to long-term
career formation of employees, andp r o m o t e s g r o w t h i n t o t h e fi g u r e a n
employee wants to become (Nissha provides
awareness of the importance of careerformation and a place for it to happen).

Career development

Human Resource Development Model

more than 300 employees utilized the self-development
support system that helps cover the expenses of distancelearning.

Training Systems
Nissha’s internal training programs, which havecontinuously expanded since fiscal year 2008, currently
include rank-specific training programs, specialized
education for technical personnel, foreign language training
programs, and theme-specific training programs.
In fiscal year 2010, we implemented middlemanagement training for all managerial staff to concur withthe restructuring of the relevant personnel system. We arealso implementing a standardized entry-level training
program in the English and Japanese languages for local staff
at overseas bases in an aim to be a truly global company.
Moreover, we actively encourage employees to engage inself-study. In fiscal year 2010, 431 employees voluntary
applied to selective theme-specific training programs, andA middle-management training
sessionFurther Enhancement of Human Resources
Development Programs
With the restructuring of the HRM system for generalemployees in fiscal year 2011, and the clarification of
expected roles according to new grades, we plan to newly
incorporate necessary training into the rank-specificprograms and also enhance selective training programs forhuman resources with high growth potential.
In addition to training, the new HRM system will alsoestablish target management and emphasize work-based
human resources development by superiors as amanagement tool. The system will also further enhance
active promotion of human resources and development
through collaboration between units in line with Nissha’s
business strategies.
Nissha plans to continue implementing these initiatives
into the future in an aim to become a truly global company
that can achieve growth for both the company and our
employees.

An Entry-level training session for local
staff at overseas bases

20

CSR Report 2010

Basic Policy on Safety and Health
Nissha has in place a group-wide basic policy on safety andhealth formulated on the belief that safety comes first above all
else, and which declares that the company will actively promote thecreation of safe and comfortable work environments as well assound mental and physical health of employees. To achieve this, we
are working to make continuous improvements toward eliminating
workplace casualties; establish structures to ensure the soundmental and physical health of employees; observe laws, rules,
stakeholder demands, and voluntary standards related to safety
and health; perform risk assessment; create safe and comfortableworkplaces; and familiarize all employees with the basic policy.

Frequency of Work-related Accidents
Nissha comprehends and manages the frequency of workrelated accidents by business office.
Headquarters

Safety and Health Subcommittees(per business unit)

NII Koka

NME
Kameoka

0.6

0.0

0.0

1.2

3.4

0.8

3.4

NME
Kumihama

NPI Kaga

NPI Kyoto

NPC Kyoto

NPC Yachiyo

NBS

Average

0.0

0.0

0.0

0.0

0.0

0.0

0.6

Precautions against the New Influenza Virus
Nissha responded to the new influenza epidemic last year
by establishing an emergency task force in April. To prevent
infection to employees, the task force stockpiled suchsupplies as face masks and antiseptic sanitizers anddistributed them to all bases in Japan and overseas, andissued the “Notification Regarding the New Influenza” (No.
1-9) and the “Guidelines to Preventing Infection” (No. 1-7).
It also prepared for the event an infection occurs by providing
information on Nissha’s internal portal website about how toprevent further spreading of the virus.
Employee Healthcare Initiatives
Employees’ Healthcare within the Headquarters has
implemented initiatives focused on countermeasures formetabolic syndrome and the enhancement of mental
health. In countermeasures for metabolic syndrome, it held
instructional events using the “Guide
to a Balanced Diet” and displayed
educational posters. In the enhancement of mental health, it held atotal of eight line-care training
sessions for supervisors at majorbases in Japan, which 328 employees(including 241 managerial staff ) A consultation session
using check sheets
attended.

President

Safety and Health Subcommittees(per business unit)

NII Kyoto* F requency of work-related accidents: Refers to the number of injuries and casualties
resulting from work-related accidents per one million actual working hours

Safety and Health Management Structures
Nissha has in place a Safety and Health Committee thatoversees the entire group and supervises area-specific Safety
and Health Subcommittees operated by each business unit.
The committee undertakes the role of a corporate-wide
function that reports on the individual unit’s initiatives
toward safety and health, ensures the sharing of information
between units and the horizontal implementation of
improvement and accident prevention measures, and works
to standardize and upgrade initiatives throughout the group.

Safety and HealthCommittee

Tokyo Division Osaka Division
NII Kameoka
Headquarters Headquarters

Corporate-wide function

Safety and Health Subcommittees(per business unit)

Display of the “Safety” Slogan
To emphasize a unified awareness of safety throughout theentire group, all of Nissha’s production departments in Japanand overseas display slogan posters in their native language.
We encourage employees to actively engage in workplace
saf ety activities
with an awarenessthat they are notfor the company
but to protect theemployees’ own
safety.
Slogan design

Preparation of Employee Welfare and Benefits Systems
In addition to continuing to hold regular “Kids Days” and“Nissha Special Days”, we have worked to expand ourmutual aid organization throughout all group companies inJapan and enhance its benefits. On April 1, 2010, theorganization will start operations anew as the NP Club
(Nissha People’s Club).

21

Environmental Aspects Environmental Policy and Environmental Management Structures
Nissha positions environmental management as a top priority item of the Management Policy and defines it as“environmentally-oriented solutions, products and activities”. Through management systems based on ISO 14001
certifications obtained in and outside Japan, the company continuously implements initiatives toward the reductionof environmental impact in line with the Environmental Policy.

Guidelines for Biodiversity Initiatives
For the preservation of biodiversity, one of two major
issues regarding the global environment, in April 2010,
Nissha established group-wide Guidelines for Biodiversity
Initiatives in line with the Ministry of the Environment’s
Guidelines for Private Sector Engagement in Biodiversity.

Environmental Policy
Nissha and its subsidiaries consider that the global environmental
protection is the most important issue in our activities of production,
development, sales and administration in Japan, and also on our
products and services. And we make effort to preserve the global
environment by environmentally conscious activities.
1. We actively promote environmental conservation by establishing andcontinually improving a environmental management system.
2. We comply with applicable legal requirements and agreements andcustomer requirements related to environmental aspects. And we
make efforts in environmental conservation by establishing standards
on autonomous environmental management, as long as such efforts
are feasible in technological and economic terms.
3. We strive to prevent environmental pollution, with a focus on thefollowing measures for environmental management:(1) We promote zero emission by recycling waste.
(2) We promote the appropriate management of specified chemicals(Target chemical for PRTR etc.), as well as reduction in percentageof these chemicals used in our operations.
(3) W e make efforts to reduce carbon dioxide emissions bydecreasing the usage rate of electrical and gas energy.
(4) We devise and implement manufacturing methods that impose
fewer burdens on the environment.
(5) We develop environmentally friendly products.
(6) We propose products with low environmental loads to customers.
4. We endeavor to continually improve our environmental activities andprevent pollution by setting environmental objectives and targets, byexecuting it, and by reviewing it.
5. We make Environmental Policy known to all employees working in
the premises of Nissha and its subsidiaries to raise their awareness of
the issues related to environmental conservation.
6. We make Environmental Policy available to the general public.

Guidelines for Biodiversity Initiatives
Recognizing biodiversity as an important issue in all aspects of our
products and corporate activities, Nissha promotes environmental
management in an aim for “Co-Existence” with the global environment.
We will take action to respond to the biodiversity preservation andthe potential risks through the following items/activities.
1. C onduct the investigations necessary to set standards forvoluntary management of emissions.
2. Review our activities, together those in supply chain.
3. S elect activities that each base can implement to conserve endangered
and native species and create a safe environment for them.
4. Investigate the operating risk and consider countermeasures.

Management Reviews and Systems
Nissha conducts internal environmental audits andmanagement reviews twice a year to verify thatmanagement systems are functioning smoothly, and strives
to make continuous improvements using the PDCA cycle.
The Environmental Conservation Committee comprised ofmembers from each base meets once a month to confirm
the status of initiatives – which are divided into the threesegments of “preservation of the local environment”,“measures for the global environment” and “customers
needs” – and report on such issues as environmental
performance, customer requirements concerning chemical
substances contained in products, changes in related laws
and regulations, and findings from monitoring theenvironments surrounding production bases.

Energy Management and Environmental
Communication Structures
In addition to preparing a management structure for theuse of energy at affiliated companies, Nissha has also set up
a communication structure to comprehensively control
group-wide environmental information, including the use ofenergy, in response to the revised Act on the Rational Use ofEnergy.
Headquarters

President(specified business operator)

Energy Management Control Officer
Energy Management Planning Promoter

Division Headquarters/
Sales Offices

Environmental Management
System Committee

Environmental Information
Control Supervisor

Environmental Communication Personnel

Affiliated companies Environmental Communication Personnel(not relevant)(held twice a year)

Affiliated companies Energy Management Control Officers

Environmental Conservation
Committee(specified business operators)(held monthly)

Environmental Conservation
Committee Members

Environmental Conservation
Committee Members

Environmental Conservation
Committee Members

Nissha Environmental Management Structure

Energy Management Planning PromotersType 1 Designated Energy
Management Factories

Energy Managers
Environmental Communication Personnel

Type 2 Designated Energy
Management Factories

Energy Managers
Environmental Communication Personnel

Non-designatedBusiness Bases

Environmental Communication Personnel

Environmental
Communication Supervisor

Energy Management and Environmental Communication Structures

22

CSR Report 2010

Environmental Objectives and Status of Achievement

In April 2009, Nissha set new company-wide environmental objectives for the three-year period until fiscal year
2012. Fiscal year 2010 was the first year of implementation of these initiatives. Each business unit has set up an
action plan and is working toward their individual objectives in order to achieve the company-wide environmental
objectives.

Subject

Fiscal year 2010-2012 Nissha environmental objectives

Fiscal year 2010 results

Waste reduction,
recycling and reuse– Waste zero emission (recycle/reuse ratio: 99.8%)– 5% or more reduction in ratio of waste (including
items sold for recycling) to net sales (Base year:
the average for the period between April and
September 2008)– Recycle/reuse ratio at Nissha Group in Japan: 99.4%
Note that we achieved zero-emission in December.
– Three of the ﬁve bases that undertook the initiative achieved the objective
Certain business units did not achieve the objective due todeclines in average selling price (ASP).

– Production departments to prevent waste generation by
Certain business units did not achieve the objective due to changes in
reducing the ratio of nonconforming products (Numerical production methods such as to accommodate ever-stricter producttargets to be established for each production unit)
appearance standards and the shift in demand to highly complex products.
Prevention of global
warming

New objectives– CO 2 emission rate at Nissha Group in Japan: 0.61
Reduce the CO 2 emissions rate (total emissions
This was a 0.12-point increase compared to 0.49 in FY2009.
volume/net sales) by 5% (even a 5% increase in
Despite our promoting the installation of energy-conserving
sales will not result in increased total CO 2 emissions)
machinery, we did not achieve the objective due to declines in ASP andother factors.
*Administrative offices to set goals per square meter

Prevention ofenvironmental
pollution

Reduction in usage ratio of organic solvents (Base: the– We did not achieve the objective due to small production lots at NII and increases in the
average for the period between April and September 2008)
volume of ink usage to accommodate the shift in demand to highly complex products.

Burden reduction by
Manufacturing anddevelopment– Adoption of environment-friendly manufacturing
processes, raw and processed materials, submaterials, packaging, and logistics– NII Kameoka implemented green purchasing of sub-materials– NPC implemented CTP (Computer To Plate) technology in the ﬁlm output process– NPC tested waterless printing and non-VOC (Volatile Organic Compounds) inks

– Development of environment-conscious products – Used environmentally considerate designs to develop products– Developed de-chlorinated foil and made mass production possible

Other– Offering manufacturing processes and productsthat reduce the environmental load of customers– NPC promoted the proposal of websites, a paperless media– Revised the Nissha Control Criteria for Environmental Management Substance– Promotion of environmental conservation
activities in the course of carrying out work

– Conducted monthly Lights Down Events at Nissha Group offices– Conducted investigations of major suppliers as to the appropriate management of waste– Implemented internal audits of each base related to environmental laws and regulations– NII Kyoto and Kameoka implemented 6S patrols– Conducted environmental workshops for elementary schools* For the calculation of usage and occurrence ratios, we use net sales.

Environmental Initiatives and Results
We have used the first half of fiscal year 2009, whenbusiness performance and factory production were stable, asa benchmark in setting environmental objectives. Conditions
were severe in fiscal year 2010, however, and Nissha could
not get on a path to recovery.
In waste reduction, though the Nissha Group (in Japan)
achieved zero-emission in the second half, certain business
units did not achieve the target waste emission ratio (to net
sales).
In the prevention of global warming, we had set a newtarget to reduce the CO2 emissions rate (total emissions
volume/net sales) by 5%, however, the figure for Nissha
Group in Japan notably worsened from 0.49 in the previous
fiscal year to 0.61 under the impact of declines in average
selling price (ASP).
In the prevention of environmental pollution as well, we
did not achieve our reduction target in usage of organic
solvents due to not only declines in ASP but also small
production lots of gravure printing and increases in thevolume of ink usage in highly complex products.
In burden reduction by manufacturing and development,
nevertheless, we achieved a certain degree of results such as
the de-chlorination of transfer foil.

Implementation of Internal Audits Related toEnvironmental Laws and Regulations
The Environmental Control and Management
Department implemented specialized internal
audits of all bases in Japan and inspected thestatus of adherence to environment-related laws
and regulations. Inspection items included
specified facilities, the monitoring of wastewater,
gas and noise discharges, and the outsourcing andmanagement of waste treatment. Though no
obvious violation of laws was confirmed, thedepartment conducted follow-ups on individual
risks that might be in breach of laws depending on
the circumstances. Nissha will continue to
implement yearlyinternal audits related
to environmental laws
and regulations in aneffort to improve ourmanagement level.

23

Evaluation

Environmental Impact as a Result of Nissha Business Operations
Nissha strives to identify the impact of the group’s business operations on the environment in terms of resources andenergy usage (INPUT) and gas, water and waste emissions (OUTPUT). This section shows the volumes of eachcategory in a list covering Nissha’s business operations in Japan in fiscal year 2010.

at approximately 66%, continues to comprise thelargest part of the whole with the majority of materials
used being paper.
The “input” of resources in Nissha’s business
operations overall increased 3% compared to the previous
year. In terms of energy, the use of electricity increased
17%, and gas 19%. As a consequence, “output” in termsof CO2 emissions increased 17% as well.
Emissions of VOC, however, decreased somewhat
due to slight reductions in the use of solvents and inks
in the Industrial Materials Business.

Environmental Impact Caused by Nissha’s Business
Operations in JapanThe use of major raw materials in the Input Devices
Business has come to comprise 6% of the whole with anearly twofold increase compared to the previous year
due to rises in production volume at the Kaga Factory(Nitec Precision), Nissha’s key production factory. Thatin the Industrial Materials Business comprises
approximately 27% of the whole, for a 13% decrease
despite usage almost doubling at the Koka Factory(Nitec Industries), one of Nissha’s production bases.
That in the Information and Communication Business,
Primary raw materials, production parts and materials
Industrial Materials

PET film
Solvents
Gravure Ink
Other

5,160t3,650t2,710t
770t

Recyclable resources(including items soldfor recycling)

Scrap containing gold, silver, copper, aluminum
Resin waste
Paper scrap
5,196tInput Devices

Materials used in productmanufacturing processes
Other2,070tRecyclable resources(Industrial materials)

Waste plastic
Iron scrap, waste cans
Waste solvents, waste ink, waste cloth
Waste acid, alkali, Wood waste, etc.

Information andCommunication

810t

Paper
Ink
Other

29,090t
380t
160t

Total:

44,800t

EnergyElectricity
Gas

Water

Tap water
499,000m3
Underground water 206,000m3

Combustible andlandfill waste(Industrial materials)

8,180tGeneral business waste
Other (industrial waste)
82t
Total:

13,458t

EmissionsCO2
VOC

72,984t
3,370tWastewater

Wastewater volume

94,217MWh
8,235,000m3

670,000m3(scope of data: Nissha production bases in Japan)

Kameoka Factory (Nitec Industries) Receives theJapan Federation of Printing Industries Chairman’s
Award as an Environmentally Excellent Factory

Kameoka Factory (Nitec Industries) Installs VOC
Combustion and Disposal Equipment
In fiscal year 2010, the Nitec Industries
Kameoka Factory installed large equipment tocollect, combust and destroy VOCs from thegravure printing and drying facilities and local
exhaust facilities throughout its premises. The
factory practices environment friendliness throughthese efforts to minimize atmospheric emissions
and eliminate air pollution and odors.

The Nitec Industries Kameoka Factory received aJapan Federation of Printing Industries Chairman’s
Award at the 8th Printing Industry Environmentally
Excellent Factory Awards, following the awarding of
the Nissha Headquarters Factory in the 7th awards
last year.
Representatives from Nissha attended thecommemoration ceremony in September.
The Kameoka Factory appreciates this highevaluation of its ongoing environmental initiatives,and plans to continue making efforts to further
improve the level of its measures.

24

CSR Report 2010

Energy Conservation and Measures to Help Prevent Further Global Warming

In fiscal year 2010, CO2 emissions from Nissha operations increased significantly in Japan, while they decreased overseas.
The increase in Japan was due to emissions at new factories, as those at existing bases either decreased or remainedlevel. Drops in average selling price (ASP) have also largely impacted our reduction targets per basic unit this year.

Status of CO2 Emissions at Nissha
In fiscal year 2010, CO2 emissions from Nissha operationsin Japan totaled 72,984 tons, significantly exceeding
62,534 tons in fiscal year 2009 by approximately 17%(10,450 tons).
Emissions from overseas production bases amounted to
7,732 tons for a decrease of approximately 4% compared to
8,076 tons in the previous year.
The increase of CO2 emissions in Japan resulted from theKoka Factory (Nitec Industries) launching full-fledged
operations of Factory No. 2 and establishing a new printing
plate factory in 2008 (for an increase of approximately
9,181 tons), and the Kaga Factory (Nitec Precision) building
new facilities at Factory No. 3, also established in 2008 (foran increase of 5,798 tons). Emissions from existing bases,on the other hand, generally decreased or remained level,with the Headquarters area decreasing by 38% (4,380 tons).
In overseas production bases, CO2 emissions amounted to
4,129 tons at Eimo Technologies, a subsidiary of Nissha
USA, comprising more than half of all emissions at overseas
production bases.

Trends in CO2 Emissions Volumes and Basic Unit
Basic Unit ((t-CO2)

Total CO2 emissions volume
Net sales

)

0.61
0.60

100,000

0.50

0.49

80,00060,00080,3950.50

70,6100.40

55,7810.30
40,0000.20
20,000

0.10

0

2008

2009

2010 (FY)

0.00

Total for overseas production bases

NME (Yodo Factory, Kameoka Factory, Kumihama Factory)NII Koka Factory

NII (Kameoka Factory)

NPI Kaga Factory (includes NME Kaga Factory)

Headquarters

Other (Tokyo Division Headquarters, Osaka, Yachiyo)

Changes in CO 2 emissions per unit of sales* Calculated based on the Manual for Calculating and Reporting Greenhouse Gas Emissions Volumes.
* All decimals have been rounded off to the nearest whole number, so the total may not tally in some cases.
* Figures for overseas production bases have been included since the fiscal year 2008.
* The CO2 emissions volume used for the calculation of the basic unit is the total for Nissha production basesin Japan.

Trends in Gas Consumption(1,000m )3Trends in Gasoline, Diesel,and Heavy Oil Consumption

9,000

Initiatives to Reduce CO2 Emissions
Nissha has also worked toward reduction targets per basic
unit, which we have set up as a new environmental objective.
Due to the prolonged instability of operations at a number of
production bases and the impact of drops in ASP in fiscal
year 2010, however, the CO2 emissions rate (per net sales)
was 0.61 tons per million yen, significantly exceeding 0.49
in the previous year.
We expect the challenges of fiscal year 2010 to continue
for some time, and plan to make efforts toward new targets.
The specific initiatives we undertook in fiscal year 2010
include equipment-related measures such as updating the
air conditioning system from gas absorption heat pumps to
air-cooled chillers in several factories in the Headquarters
area, contributing to reduced CO2 emissions.

8,235
7,500

(kI)

248

250

7,027

197

200

6,000

5,134
4,500

150

3,000

100

1,500

50

0

2008

2009

2010 (FY)

Trends in Energy Consumption(1,000GJ)

1,530

1,500

0

2008

182

2009

Trends in Electricity Consumption(MWh)120,000

107,788

1,285
1,250

The revised Act on the Rational Use of Energy requires the
tracking and management of the use of energy by business
entity (affiliated company). This report, however, lists
Nissha’s use of energy by business base, as we are at the
moment devising measures to identify the amounts ofcertain energy types used by the separate offices at basesthat accommodate multiple offices.
We plan to announce the volumes of energy use and CO2
emissions by business entity when we have reported thefigures of fiscal year 2010 to the presiding government
agency.

1,000

2010 (FY)

100,000

1,007

94,39780,00068,278750

60,000500

40,000250

20,000

0

25

2008

2009

2010 (FY)

0

2008

2009

2010 (FY)Waste Management and Zero Emissions
In fiscal year 2010, Nissha operations in Japan generated a total of 13,458 tons of waste for an approximately 7%
increase compared to fiscal year 2009; and 83 tons of combustible and landfill waste for an approximately 13%
increase. Though our average yearly recycling and reuse rate was 99.4%, we achieved zero emissions (a rate of 99.5%
or more) in the second half alone.

Volume of Waste Generated and Treatment Methods in Fiscal Year 2010

Recycling and reuse of resources

Items sold for recycling

Type of Recyclable Resource or Waste

Treatment Method

Waste containing metals

Recovery of metals and refining

432t

3.2%

Metals, iron waste

Reuse of metals

304t

Waste oils

Recycling of oil and fuel

3t

2.3%
0.0%

Resin (plastic) waste
Paper waste (recyclable used paper)

Reuse of resin chips
Paper material (recycled paper)

1,440t10.7%

3,017t22.4%

5,196t38.6%

462t
4,766t
72t
46t
23t
12t
1,982t
173t
231t
267t
135t
11t

3.4%
35.4%
0.5%
0.3%
0.2%
0.1%
14.7%
1.3%
1.7%
2.0%
1.0%
0.1%

8,180t60.8%

General waste
Other (landfill waste)

11t
70t
2t

0.1%
0.5%
0.0%

Subtotal (D)

82t

0.6%

Total (V + R+ D)

13,458t

100.00%Recycling and resource reuse rate (V + R) /(V + R + D)

99.4%

Subtotal (V)Iron scrap
Waste plastics
Paper waste
Wood waste (discarded pallets)
Timber waste (after pruning trees)

Reuse of iron (*when an expense is incurred)

Glass and ceramic waste
Waste oils and solvents
Waste cloth (used to wipe solvents)
Waste acids
Waste alkaline liquids
Sludge* General waste

Made into cullets, civil engineering and construction materials, etc.

Used to make artificial plants, Refuse Paper & Plastic Fuel (RPF), and as combustion heat source
Used to make Refuse Paper & Plastic Fuel (RPF), and as combustion heat source

Used to make wooden chips, etc.
Used to make fertilizers, etc.
Reused as thinners, combustion improvers, and as combustion heat source
Used as combustion improvers, and as combustion heat source
Used as neutralizing agents and cooling liquids in incineration ovens (spray combustion)
Used as neutralizing agents and cooling liquids in incineration ovens (spray combustion)
Refined after recovery of metals; used as civil engineering and construction materials* When used as a combustion heat source

Subtotal (R)Combustible and landfill waste

Emissions in FY2010(scope of data: Nissha production bases in Japan)

Achievement of Zero Emissions at Nissha Operations in JapanThe waste recycling and resource reuse rate for Nissha
operations in Japan reached 99.9% in December 2009, andhas remained stable thereafter for a rate of 99.6% and anachievement of zero emissions in the second half of fiscal
year 2010. A major factor in this accomplishment was that
we were able to recycle sludge from wastewater treatment
facilities at the Kameoka Factory (Nitec Industries) and newlyat the Kaga Factory (Nitec Precision) and convert them into
raw fuel for cement.
Nissha will work to maintain zero emissions in the future
as well as promote initiatives at certain bases with a lower
recycling and reuse rate in an aim to achieve zero emissions
at all bases throughout the group.

Status of Initiatives at Overseas Production Bases
The four production bases of Southern Nissha (Malaysia),
Guangzhou Nissha, Nissha Kunshan and Nissha Korea (HighPrecision Plastics) generated a total 164 tons of waste.
Southern Nissha had a recycling and resource reuse rateof 94.8%, achieving its target of 87% or more. Being able tooutsource recycling to an excellent contractor helped thebase maintain a minimum rate of 96% throughout thesecond half of the year. Nissha Kunshan had a rate of
88.4%, also achieving its target of 88% or more. Though
Guangzhou Nissha and Nissha Korea did not achieve theirtarget rates, both have started to implement measures
toward new targets in fiscal year 2011. Eimo Technologies,
a subsidiary of Nissha USA, plans to launch initiatives to
identify and reduce the amount of waste it generates.

26

CSR Report 2010

Promotion of Material Recycling
Nissha calculates a material recycling rate for bases inJapan in an aim to improve the level of our recycling
initiatives. In fiscal year 2010, we had a rate of 65.7%,
achieving our target of 65%.
We have promoted the outsourcing of each item of waste
to two treatment facilities in an endeavor to avoid wasterelated risks. Unfortunately, this resulted in the amount ofwaste plastic converted into solid fuel (thermal recycling)exceeding that converted into artificial plants (material
recycling), and prevented us from achieving our target in thesecond half of the year alone.
Although Nissha views the avoidance of waste-relatedrisks a priority issue, we plan to select contractors withconsideration to improving the level of our recycling
measures.

Environment-friendly Development of New Factory
Site and the Planting of “Potential Trees” toConserve Biodiversity
The Kaga Factory (Nitec Precision) has
developed the adjacent land area it acquired toconstruct Factory No. 5.
In developing the site, the factory not only
made use of recycled macadam and asphalt but
also reused all on-site resources – including
excavated soil, and concrete and asphalt debris
generated during
construction – within
the premises, withouttransporting them toexternal locations. Iteven used cardboard
scraps as a substitutefor anti-weed sheets.

Guidelines for Waste Management Standards andWaste Risk Management
Nissha has reviewed and added items to the Waste
Management Standards for business sites in Japan and set
forth the Nissha Group Guidelines for Waste Management
Standards. We have implemented internal audits related toenvironmental laws and regulations, and verified the statusof waste management, based on these guidelines.
We have also created a list of all the facilities to which
Nissha bases in Japan outsource waste treatment, which we
use to consolidate waste management and at the same time
promote the outsourcing of each item of waste to twotreatment facilities in efforts to avoid waste-related risks.

Development of the site

Anti-weed sheets made ofcardboard scrap

The factory also planted within the site
approximately 1,800 saplings of Persea,
Ligustrum and Rhaphiolepis, which wereoriginally indigenous to the area and thus
designated by Kaga City as “potential trees” toprotect the traditional natural environment.
Nissha took part in the initiative in hopes it willlead to the conservation of biodiversity.

Transition of Waste Converted Into Resources[Nissha Operations in Japan]
Waste discharge volume(tons)

99.4%

99.4%

99.4%

Recycling and resource
reuse rate (%)
100

8,180

8,000

7,548

Zero emissions
refers to a rate of
99.5% or more

6,339

Waste sold forrecycling

6,000
5,196

4,948

Waste that isreused as resources

4,520

Combustible/
landfill waste

4,000

Recycling andresource reuse rate

2,000“Potential trees”
0

61
2008

73
2009

Planting of the saplings

82
2010 (FY)27

Distribution of Added Value to Stakeholders
This section is a new addition to Nissha’s CSR Report. The following table shows the content of value-added dividends
paid to major stakeholders in fiscal year 2010. Value-added dividends for society mainly comprise the expenses
incurred to conduct social contribution activities, and are calculated according to methods established by Nippon
Keidanren. Nissha’s current focus regarding surpluses is to effectively invest in facilities and R&D in areas of highgrowth to enhance enterprise value in the medium to long term.

Value-added Dividends Paid to Stakeholders
Stakeholder

Amount(million yen)

Shareholders

1,945

Employees

Creditors (financial institutions)
Government agencies(national, local)

SocietyCompany (Nissha Printing
Co., Ltd. internal reserves)

Total

5,076

Description

Remarks
Figures published in financial

Dividends

results

Sum of expenses for salaries, wages,
bonuses, and retirement benefits

Calculated by Corporate Communications,
CSR, using results of the year ended March
31, 2010 (excluding personnel expenses
included in manufacturing costs)

Interests

Figures published in financial
results

4,577

Sum of taxes paid including corporation tax,
inhabitant tax, and enterprise tax

Figures published in financial
results

17

Money and in-kind donations, provision offacilities, and employees’ volunteering
services converted into monetary value (using
methods established by Nippon Keidanren)

Calculated by Corporate
Communications, CSR

Amount of increase in surpluses

Figures published in financial
results

199

4,989

16,803

Dialogue with Members of the Kyoto CSR Research Society at a CSR Report Reading Workshop
Nissha’s CSR report was featured for discussion at a CSR Report Reading Workshop hosted by the Kyoto CSR
Research Society on November 25, 2009, at Campus Plaza Kyoto (Shimogyo-ku, Kyoto).
With an attendance of 40 including company employees in charge of CSR and members from Nissha suppliers,
government agencies, research institutions and non-profit organizations, the workshop was Nissha’s first opportunity
to exchange dialogue with multiple stakeholders in one session.
We were able to obtain many precious views about our CSR initiatives and reports through group discussions
evolving around two themes.
Themes of the CSR Report Reading Workshop
1. Roles, objectives and expectations of a CSR report
2. The present and future of Nissha’s CSR initiatives

We took to heart one view in particular – that theefforts of individual Nissha employees are not coming
through in our reports – and reflected this in the 2010
edition. Specifically, we included implementation itemsof the Third Medium-term Business Plan, and thestatus of their progress, in hopes that these would
reveal how each Nissha employee is tackling the various
issues related to CSR. We will continue in our endeavors
to exchange dialogue with stakeholders and act on
their feedback in the future.

28

Independent Report

CSR Report 2010

On the Nissha Printing Co., Ltd. CSR Report

CSR Activities in Tune with the Medium-term Business Plan
The significance of Nissha Printing Co., Ltd.’s activities this year lies in thecompany’s endeavors to seek coordination between its CSR initiatives and its
Medium-term Business Plan. I have high expectations of Nissha’s utilization ofa Balanced Score Card in managing the progress of its activities. The company’sefforts toward disclosure could be further enhanced if its CSR reports contained
more details about how it utilizes the card, such as the card’s connection withits business plan and the company’s evaluation of the card.

Katsuhiko Kokubu
Professor, Graduate School ofBusiness Administration,
Kobe University, Japan

Communication with Stakeholders
I highly welcome Nissha’s active efforts to exchange dialogue with its
stakeholders, such as by participating in the CSR Report Reading Workshop,
and to reflect feedback in the company’s activities and reports. External
communication is extremely important. Though space may be limited inprinted CSR reports, disclosure on the website could help the company provide
precious information to not only external but also internal individuals andentities.
Disclosure of Value-added Dividends for Stakeholders
This year’s report goes beyond disclosing remuneration for directors toinclude Nissha’s approach to distributing profits and the amounts it has paid asvalue-added dividends. This can be evaluated highly, as relatively few Japanesecompanies disclose financial information in CSR reports. A company’s firstsocial responsibility is to create value for society, so it would help if the reportemphasized this aspect such as by linking the value-added dividends with thebusiness plan, and indicating the company’s perspective.
Response to Environmental Conservation
Despite Nissha’s active efforts toward environmental conservation, its nonachievement of targets rather stood out this year. The setting of impracticallyhigh targets should not necessarily be a source of criticism, however, thecompany could explain this point in more detail. It is also important for Nissha
to incorporate medium-term perspectives in reviewing its business process
overall, whether it be countermeasures for global warming or waste reduction.
The Aim of Becoming a Truly Global Company
Nissha is working to become a truly global company, and I have highexpectations of the company expanding its CSR activities to include overseas
bases as well as those in Japan. In future reports, I recommend that thecompany become more aware about its comprehensive value chain, and aim
to create reports that include more about its activities overseas.

29

Nissha Printing Co., Ltd.
CSR Report 2010
For enquiries regarding this report:
Nissha Printing Co., Ltd.
Corporate Communications, CSR
3, Mibu Hanaicho, Nakagyo-ku, Kyoto
604-8551, Japan
Tel: +81-(0)75-823-5143
Fax: +81-(0)75-823-5344
http://www.nissha.co.jp/english/index.html

1. Soyseal: Indicates that the printing was done using
environmentally-friendly soybean oil as an ink solvent
instead of a petroleum-based solvent.
2. Butterﬂy mark: Indicates that the printing was done using awaterless offset printing method with no discharge ofharmful liquid waste.
3. This report has been printed on paper certiﬁed by the
Forest Stewardship Council (FSC certiﬁed paper).
4. Nissha is promoting green procurement.
5. Only green electricity was used in the production of thisreport.
This report sets environmental standards. When discarding thereport, please do so in accordance with the recycling rules
speciﬁed by your local town or municipality.

About the front cover of the CSR report
The front cover of this report was designed by Reinei
Chou, winner of the Nissha Award at “AMUSEARTJAM 2009 in Kyoto”. The art competition
recognized by young artists as a gateway tosuccess welcomed its eighth holding in 2009.
Nissha has supported young artists through theevent since fiscal year 2004.
Profile of Reinei Chou
1981 Born in Shenyang, China
2007 Graduated the Nihon University College of Art
Department of Fine Arts
2009 Completed the Nihon University Graduate Schoolof Art Fine Arts and Design Course
Major exhibitions
2007 Group exhibition “Ten-kairi ” at Nerima Art
Museum (Nerima, Tokyo)
2008 Two solo exhibitions at Serikawa Gallery (Ginza,
Tokyo)
2009 Group exhibition “Ecole de Shibuya” at NHK
Fureai Hall Gallery (Shibuya, Tokyo)
Solo exhibition at Galleria Grafica Bis (Ginza,
Tokyo)
2010 Guest exhibitor in “Showakai-ten ” at Galerie
Nichido (Ginza, Tokyo)
Exhibitor in “ARTJAM TOKYO 2010” at ArtJamContemporary (Ebisu, Tokyo)
Exhibitor in “Furusato-no-fukei-ten ” at Kitakata
City Museum of Art (Kitakata, Fukushima)
Exhibitor in “N+N 2010 Haru-no-arashi ” atNerima Art Museum (Nerima, Tokyo)
Winning exhibitor in “Ushiku National Open
Invitation Art Biennale” (Ushiku, Ibaraki)
Major awards
2006 N i h o n U n i v e r s i t y C o l l e g e o f A r t S t u d e n t
Encouragement Award
2009 Nihon University College of Industrial Technology
Award
Nihon University Graduate School of Art Tokumi
Sawamoto Award“AMUSE ARTJAM 2009 in Kyoto” Sponsor Award(Nissha Award)