Sustainability

Reporting in the fiscal year 2011 (April 1, 2010 - March 31, 2011)

Top Message

Nissha's CSR

Message from Junya Suzuki,
President and CEO,
Representative Director of the
Board

Nissha divides its corporate social responsibilities
into "internal CSR" and "external CSR".

Organizational Governance

Human Rights
Respect for Human Rights and Anti-discrimination

Corporate GovernanceDistribution of Added Value to Stakeholders

Labor Practices

The Environment

Human Resources Development
Work-Life Balance/Respect for Diversity
Safety and Health

Policy and Management Structures
Objectives and Status of Achievement
Impact as a Result of Business Operations
Environmental Accounting
Prevention of Further Global Warming
Waste Management and Zero Emissions
Monitoring and Prevention of Pollution
Status of Environmental Activities at BasesFair Operating Practices

Consumer Issues
As a manufacturing company, Nissha considers
its most important mission to be the provision ofhigh quality products that are safe and reliable touse.

Initiatives Related to Information Security
Trade Management Improvement Project
Initiatives Related to Intellectual Property
Partnership with Our Suppliers

Community Involvement and Development
Nissha emphasizes first fulfilling its basic
responsibilities as a company, second
implementing social contribution activities as aconstructive company, and ultimately keeping
these two wheels in motion in an aim to deepen
mutual understanding and achieve mutual growthwith local communities.

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Top Message
Present circumstances
To revive our business performance from today's stagnation andcontinue contributing to society, we need to develop and market
products that will be embraced by our customers. This requires that
we develop new technologies that reflect our corporate mission in
addition to building on our existing businesses. To this end, we are
striving to accelerate product innovation so that we may quickly,
vigorously, and continuously supply products offered by no othercompany.
True to our corporate mission
We are currently implementing measures to regain performance andlay the foundation for subsequent growth, both of which must be insync with our corporate mission. Nissha sets forth the corporate
mission of "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." This statement
represents our identity and sense of values and serves as a guide to point us in the right direction whatever
the situation. Understanding and appreciating it is essential, particularly in realizing innovation. And at a time
when innovation is expected of each of us, it is important that the steps we take are in line with thiscorporate mission.
Turning risk into chance
The social environment surrounding the company presents an increasing prevalence of risks, from financial
risk rooted in the euro crisis to business continuation risk brought about by abnormal weather due to global
warming. We believe that on top of coping with such risks, in future it will become crucial to perceive thoserisks as opportunities, and to assess them from the customer's point of view and create chances for new
business development. We see the resolution of social issues by turning risk into chance as the trump card
to our future.
In closing
We are carrying out measures to strengthen structural reform. This is a period of trial for us to overcome andresume growth hereafter.
We will continue to devote ourselves to achieving Co-Existence with our stakeholders, and look forward to
your understanding and support.
January 2012
President and CEO
Representative Director of the Board

Top Message

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Nissha's CSR
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 tohelp preserve the Earth's environment and support future
generations in keeping with our commitment to thesestakeholders.

Nissha's Circle of Trust

Nissha divides its corporate social responsibilities into "internal CSR" and "external CSR". We have set
specific items 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.

Nissha's CSR

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Organizational GovernanceCorporate GovernanceCorporate GovernanceDistribution of Added Value to
Stakeholders

We are promoting the enhancement of ourcorporate governance system.

Organizational Governance

The entire Nissha Group will work to improve our
performance and increase distribution of added
value to stakeholders.

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Corporate GovernanceReinforcement of the Internal Control System
We have in place an internal control system that supports management in promoting the effectivefunctioning of our management system from the perspective of corporate governance, based on our Policy
for Internal Control drawn up in accordance with the Companies Law and the Ordinance for Enforcement of
the Companies Law.
In response to the internal control reporting system introduced by the Financial Instruments and ExchangeAct, in fiscal year 2011, we conducted activities to ensure reliable financial reporting, re-examined thestructure and operation of work processes, and through the PDCA (plan-do-check-act) cycle, ensured that
our internal control system works effectively.
To further solidify corporate governance, in fiscal year 2012, we are working to support the activities ofcommittees including the Corporate Ethics and Compliance Committee to improve their management
systems, and enhance our response to the internal control reporting system. Through these efforts, we will
pursue effectiveness and efficiency in the work processes of our business units and throughout the Nissha
Group.

Risk Management
Nissha Printing Co., Ltd. conducts annual investigations
and checks for changes in the status of risks at all our
subsidiaries and bases.
The Risk Management Committee creates a risk map
mainly of our business units, evaluates the urgency andscale of effects by risk item, and deliberates on anddetermines measures such as to reduce the frequency ofrisks and the damage or loss caused by them. In fiscal
year 2011, we redefined risks as “anything or situation thathinders NISSHA’s implementation of the Corporate
Emergency evacuation training
Mission,” and categorized risks into clearer, more specificitems. We also strengthened and made more substantive the management functions of each risk item byappointing the general managers of business units and the managers responsible for risk management at
departments as members of the Risk Management Committee.
To respond to risks caused by factors outside our business, we clarified the roles of the dedicatedcommittee that manages serious risks across the Nissha Group, and Administration and Corporate Strategy,
which manage specific risk items.
Following the Great East Japan Earthquake on March 11, 2011, we set up a headquarters led by thepresident and drew up and implemented disaster response measures. We immediately contacted andcoordinated with each of our bases to confirm and ensure the safety of employees and protect corporate
assets such as buildings and equipment. We also confirmed the status of our suppliers and, where supplies
ran short, worked to secure alternatives to ensure a continuous supply to NISSHA so that, in turn, we may
fulfill our responsibility to supply products and services to our customers. As a result, NISSHA’s business
was not disrupted, yet we continued to verify and identify issues and review our response process. We willreflect these measures in our risk management system and carry on building an even stronger structure.

Initiatives of the Internal Audit Office
The Internal Audit Office, to maintain impartiality and objectivity in its functions, serves as an independent
corporate staff organization to audit whether business activities are carried out appropriately and efficiently
in accordance with the annual auditing plan, and offer advice and recommendations to internal

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organizations. The office offers suggestions based the results of its audits to the President at monthly
meetings, and presents important matters at the Monthly Business Review meetings attended by all
corporate officers. It conducts follow-up audits to confirm how each issue that has surfaced through theaudits is improving, and reports the results to the President. Furthermore, the office holds meetings with fulltime corporate auditors every two months to establish mutual cooperation with the Board of Corporate
Auditors.
Internal audits in fiscal year 2011 focused on the establishment of new subsidiaries, the use andadministration of NISSHA-issued standard personal computers, business unit education, and suppliermanagement, while monitoring the progress of fiscal year 2010 audits on compliance, credit management,
and safety and health management. As a third party, the Internal Audit Office also performed an
independent assessment of financial reporting-related internal controls in response to the internal control
reporting system prescribed by the Financial Instruments and Exchange Act.

Nissha’s Management and Business Execution System

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Distribution of Added Value to Stakeholders
This is our second publishing of distribution of added value to stakeholders, since our first in fiscal year
2011.
Compared to last year, dividends for government agencies (national and local) and the company (Nissha
Printing Co., Ltd. internal reserves) notably decreased due to impacts on business performance.
The entire Nissha Group will work to improve our performance and increase distribution of added value tostakeholders so that we may achieve sustainable growth in Co-Existence.

Distribution of Added Value to Stakeholders
Amount(million yen)

Shareholders

Description

1,937

Remarks

Dividends

Figures published infinancial results

Employees

5,039

Sum of expenses forsalaries, 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)

Creditors (financial
institutions)

152

Interests

Figures published infinancial results

Government agencies(national, local)

642

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

Government agencies(national, local)

Society

16

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

Company (Nissha
Printing Co., Ltd. internal
reserves)-4,403

Amount of increase insurpluses (Amountwithdrawn from surpluses)

Figures published infinancial results

3,383

-

-

Total

Distribution of Added Value to Stakeholders

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Human Rights
Respect for Human Rights and Anti-discrimination
Corporate Ethics and Compliance Declaration
In 2008, we drafted the Corporate Ethics and Compliance Declaration to ensure solid response to societal
awareness regarding the observance of corporate ethics and to emphasize a shared understanding of theissue within the Group. This declaration, based on our Policy for Internal Control, comprises ten
requirements, which we display on posters at bases in and outside Japan as a foundation on which tothoroughly familiarize and encourage the practice of corporate ethics and compliance throughout the Group.

Corporate Ethics and Compliance Declaration
We hereby declare that we fully understand the importance of the words “wideranging co-existence withsociety based on trust” that are raised in the corporate motto of the Nissha Group, and that all directors
and employees will work on the maintenance and improvement of corporate ethics and the practice ofcompliance in order 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 the handling of private information anddo not disclose information relating to personal privacy without due cause.
3. Environmental protection
In the research, development, manufacture, sale and disposal of products, we always 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 of free and faircompetition in business activities, conduct business transactions based on the motto of coexistence 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 and observe 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 information of the Nissha
Group and along with disclosing information promptly and appropriately, we also pay attention to
its accuracy, fairness and continuity. Also, in regard to the control of important information
related to Nissha and other listed companies, we strive for the prevention of insider trading andnever pursue unfair transactions.
7. Workplace health and safety
We strive for the maintenance of a safe and hygienic workplace environment. In the event of anindustrial 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 so that suchinformation is not disclosed to others without permission nor used for any purpose other thanthat 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

Human Rights

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CSR Report 2011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.

Corporate Ethics and Compliance Committee
We hold Corporate Ethics and Compliance Committee meetings each quarter to report on theimplementation status of such initiatives as compliance study meetings and response made to mattersreported through the Hotline (we hold meetings to respond to and discuss urgent matters as they arise).
The committee holds regular internal compliance study meetings, reviews training programs, periodicallyshares information with education supervisors at each base, and serves the role of further fortifying ourcompliance promotion structure.
Compliance Study Meetings
Recognizing the need for all Nissha People to observe and practice corporate ethics and compliance, and inline with one of the major issues of the medium-term business plan “building a Nissha compliance system”,
in fiscal year 2010 to 2011 Nissha Group appointed an education supervisor at all bases in and 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 a system to implement
participant awareness surveys and respond to and discuss their views and questions after each study
meeting.
Nissha Hotline
To minimize risks and promote ethical conduct and compliance, as well as to enable the company toimmediately verify facts, Nissha has established a system for internal reporting in the event of fraud, illegal
activity or unethical conduct by either the organization or an individual employee. The Nissha Hotline, adedicated telephone line enables reporting from within the company and from outside.
In fiscal year 2011, the Nissha Hotline was used nine times. Many of the reports concerned human rights.
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 our compliance structure, however, we
recognize the need to establish a hotline system that can sufficiently cope with the current number of
employees and business sites, enhance employee awareness of the system, and improve the system’s levelof response.

Nissha Hotline

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CSR Report 2011

Nissha Printing Co., Ltd.’s Employment Regulations prohibit discriminatory treatment based on nationality or
faith, so as to prevent the unfair treatment of employees during work hours.

Employment Regulations (excerpt)
Article 3 Employees shall not receive discriminatory treatment due to nationality, faith, gender, or social
status.

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Labor Practices
Human Resources Development

Work-Life Balance/Respect for Diversity

Nissha believes that its employees are its mostimportant management resources. We are aiming
to achieve growth for both the company and our
employees.

You can see many initiatives to support ouremployees’ work-life balance and related systems
and regulations.

Safety and Health
Our Basic Policy on Safety and Health puts safety
first above all else and declares we will actively
promote the creation of safe and comfortable
work environments as well as the sound mental
and physical health of employees.

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Human Resources Development
Basic Approach to Human Resources Development
We believe that its employees are its most important management resources. We are aiming to achieve
growth for both the company and our employees by actively supporting the growth of each individual
employee and developing human resources who are equipped with the skills and experience required towork at the company.
We approach human resources development in the three areas of “planned human resource development”,“skill development” and “career development.” For each area, we promote comprehensive education
comprising training programs, on-the-job training (OJT), medium- to long-term career path development, andthe preparation of personnel systems to support these programs.

Human Resource Development Model

Training Systems
Our internal training programs, which have continuously expanded since fiscal year 2008, currently include
rank-specific training programs, theme-specific training programs, and foreign language training programs.
In fiscal year 2011, we restructured the company’s HRM (Human Resource Management) system forgeneral employees. This clarified the roles expected of each new grade, and accordingly, incorporated
necessary training into the rank-specific programs.
From the perspective of “career development,” we implemented training for employees over the age of 30.
As a means to achieve our medium-term vision “Become a truly global company,” we are working to fortify
foreign language training. We introduced a program involving a foreign instructor dedicated to educating
NISSHA employees and an increased number of classes, had all company-wide applicants take the TOEIC
test, and then gave business English conversation lessons for each work type and level. From fiscal year
2012 onward, we will clarify the proficiency level required for each work type and implement further efforts tostrengthen employees’ English skills.
In fiscal year 2011, 512 employees applied for theme-specific training (voluntary selection-based programs),
and more than 100 used the self-development support system, which helps cover the expenses of distancelearning. We actively encourage employees to engage in self-study.
Department- and Group-specific Human Resources Education
In addition to enriching our company-wide training programs, we are also working to educate humanresources at the department and group level. To address department- or group-specific strategic issues, we
implement programs that incorporate training into specific action plans.

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CSR Report 2011

Group work training

Human Resources Development

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Work-Life Balance/Respect for Diversity
Work-Life Balance
We have many initiatives to support our employees’ work-life balance.
Reduction of Overtime WorkWe made efforts to reduce overtime work by raising employees’ awareness through the operation of apromotional website on which we introduced quick estimates and the activities of each department andworkplace. Thanks to this company-wide initiative, we achieved a 16% reduction compared to the previous
fiscal year.
Promotion of the Use of paid leave
In fiscal year 2011, we made efforts to increase the rate of paid leave taken by raising all employees’
awareness through the announcement of the rates of each department and workplace on a monthly basis. In
fiscal year 2012, we will introduce a winter vacation planning system where employees may take two days of
paid leave between December and February, and work to create an atmosphere in which it is even easier totake paid leave.
Child-rearing and family care support
We saw in increase in both men and women employees
who took advantage of the new child-rearing and familycare support systems. In August 2010, our first male
employee to take child-rearing leave had the opportunity
to talk about his experiences in a work-life balance support
and promotion seminar hosted by the Japan Institute ofWorkers’ Evolution.

Panel participation in a work-life balance support andpromotion seminar

Volunteer activity support
Since October 2010, a female employee is participating in rural community development in the Philippines
as a Japan Overseas Cooperation Volunteer. We are treating her two-year activity as paid leave andkeeping in touch with her regularly so as to support a smooth return to work. We will continue to build on oursystems and raise awareness about them throughout the company in an aim to offer thorough support foreach employee’s work-life balance.
Related Systems and Regulations- Flexible work hours- Staggered work hours- Leave regulations (shorter hours after reinstatement)- Child-rearing leave regulations (including shorter hours for child-rearing and child care leave1) ）- Family care leave regulations (including family care leave2) and shorter hours for family care)- Accrued non-statutory annual paid leave- Child-rearing support

Work-Life Balance/Respect for Diversity

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1) and 2) are new systems introduced in fiscal year 2011. The following are theirdescriptions.
1) five days per year until a child enters elementary school, or a maximum of 10 days for
two or more children. *Paid leave may be taken in half-day units
2) five days per year for a family member requiring care, or a maximum of 10 days for two
or more members. *Paid leave may be taken in half-day units

Status of long-term leave and time taken off from work
scope of data: Nissha group in Japan. FY 2011

Rate of paid
leave taken

43.1%

Number of
employees who tooktime off from work
during pregnancy andafter childbirth

Number of
employees
who took time offfromwork 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

20

25

20

2

Respect for Diversity
Diversity of Nissha People
The Nissha Group comprises a variety of employees in terms of gender, nationality, age, and employment
status. Non-Japanese employees make up one-fourth of our work force. With a rise in the number of female
employees in recent years, we expect women to play an increasingly larger role in the Group.

Breakdown by gender (permanent employees) (Fiscal year 2011)

Breakdown by nationality (all employees) (Fiscal year 2011)

Breakdown by employment status (all employees) (Fiscal year 2011)(scope of data: NISSHA)
Ratio of Disabled People Employed at Major GroupThe Nissha Group periodically interviews disabled people and promotes their long-term employment. We
work to create jobs by preparing workplace environments and spreading understanding about employment
for disabled people.
Nissha Printing
1.84%

NII
2.11%

NME
1.34%

NPI
2.27%

NBS
2.71%

Reinstatement Support Bylaws
In fiscal year 2011, we enacted the Reinstatement Support Bylaws, which stipulates the consideration to betaken by workplaces for employees after reinstatement, according to the condition of their health. This aims
to prevent recurrence of illnesses and achieve a smooth return to work for employees.

Work-Life Balance/Respect for Diversity

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CSR Report 2011

Safety and Health
Basic Policy on Safety and Health/Safety and Health Objectives
Our Basic Policy on Safety and Health puts safety first above all else and declares we will actively promote
the creation of safe and comfortable work environments as well as the sound mental and physical health of
employees. To this end, we have set Our Safety and Health Objectives and familiarized all employees withthe following contents toward their achievement.
(1) Make continuous improvements toward eliminating workplace casualties(2) Establish structures to ensure the sound mental and physical health of employees(3) Observe laws, rules, stakeholder demands, and voluntary standards related to safety and health(4) Perform risk assessment(5) Create safe and comfortable workplaces
Safety and Health Committee/Safety and Health Management Structure
The Safety and Health Committee oversees the area-specific Safety and Health Subcommittees operated byeach base, and undertakes the role of a corporate-wide function that works to standardize and upgrade
initiatives throughout the Nissha Group.
The committee receives reports on individual base’s initiatives toward the Safety and Health Objectives andensures the sharing of information and the horizontal implementation of improvement and accident
prevention measures.

Safety and Health Management Structure

Safety Patrols
Selected members of the Safety and Health Committee (representatives of the company and of employees)
make annual plans and conduct monthly patrols of workplaces from various viewpoints, such as whether
there are any hidden risk factors and whether dangerous work processes are not employed. The 6S* patrols
at Headquarters are particularly notable, as they enable a number of Nissha Group companies locatedwithin Headquarters premises to work together and improve each other’s level of safety.
* 6S: (1) Sort (2) Set in order, (3) Shine, (4) Standardize, (5) Sustain, and (6) Safety

Frequency of Work-related Accidents
We comprehend and manage the frequency of work-related accidents.
* Frequency of work-related accidents: Refers to the number of injuries and casualties resulting fromwork-related accidents per one million actual working hours.

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Headquarters
0.0

Tokyo Division
Headquarters
0.0

NII Tsu
0.0

0.0

0.0

0.0

NPT Himeji

NisshaKameoka

NME
Kameoka

NII Kyoto
0.0

0.0

Osaka Division
Headquarters

0.0

NME Kumihama
0.0

NPC Kyoto
0.6

NII
Kameoka

NII Koka
1.9

NPI Kaga
0.81

0.0

NPC Yachiyo
0.0

NPI Kyoto

NBS
0.0

Prevention of Lifestyle Diseases
We held an anti-smoking event at Nissha Group
companies in Japan to deepen the understanding thatsmoking is a cause of lifestyle diseases.
We exhibited a cigarette-related display, screened a DVDof overseas anti-smoking commercials, and measured theamount of carbon monoxide in participants’ breath with a
Smokerlyzer.
The participants actively inquired and sought advice about
their test results and gave their various views on smoking
cessation.
Anti-smoking event

We also held an event to estimate the age of bloodvessels, where a dietician offered participants one-on-one
advice about their test results. This event had sections tomeasure grip strength and body fat, which served toarouse interest in health.
With participation of more than 200 mostly younger
employees, the event was a good opportunity to recognize
anew the importance of constantly being aware of one’s
health and practicing good habits in daily life.

Blood vessel age-checking event

Risk Assessment Initiatives
We are working to assess risks and prevent work-related
accidents. To learn the assessment process andstandardize the recognition of risks across workplaces, wehold video training sessions through which employees
learn to identify and estimate the impact of risk andadverse factors, and propose risk reduction measures in agroup discussion. This group discussion is joined not only
by production but also by management, so that views canbe exchanged and we may promote this initiative from awider perspective.
Group discussion

Mental Health Care Support
We invite a clinical psychologist to provide education in an effort to improve mental health and support
mental health care.
In fiscal year 2009, the initiative comprised self-care education. From fiscal year 2010 to fiscal year 2012, it
comprises line-care education for managers (including corporate officers).
All managers participate in the line-care education and discuss issues presented by the instructor. The

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sessions are proving popular, as participants havediscovered that ways of thinking vary from workplaceand from the contents of their work.
We are also carrying on with the web counseling service
we launched in fiscal year 2009, through which a
specialized counselor offers mental health advice online.

Line-care education

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The Environment
Policy and Management Structures

Objectives and Status of Achievement

Introductions to environmental policy,
environmental management structures andspecific initiatives.

Introductions to achievements of initiatives in
FY2011 and renewed environmental objectives in
FY2012 through FY2015.

Impact as a Result of Business Operations

Environmental Accounting

Reports of counting of input and output generated
from business operations at production bases inJapan.

The scope for calculations this time includes allbases in Japan, in contrast to Headquarters in thepast. We plan to continue preparing
environmental accounting data in the next fiscal
year.

Prevention of Further Global Warming

Waste Management and Zero Emissions

In fiscal year 2011, CO2 emissions from Nissha
operations increased significantly. The increase
was due to emissions at new factories.

Reports of conditions of the waste recycling andresource reuse rate and the waste management
standards.

Monitoring and Prevention of Pollution

Status of Environmental Activities at Bases

Reports of environmental measurement results at
production bases in Japan and substances
subject to the PRTR Law.

The Environment

The status of environmental activities at
production and sales & marketing bases in Japan.

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CSR Report 2011

Policy and Management Structures
Environmental Policy and Environmental Management Structures
To achieve our Corporate Mission, we list environmental management as an item of the Management Policy
and describe it as “global environmentally oriented solutions, products and activities.” We state in theEnvironmental Policy that we “consider that global environment protection is the most important issue,” andthrough the operation of management systems based on ISO 14001 certification, implement initiatives
focused on the PCDA (plan-do-check-act) cycle toward environmental preservation and the reduction ofenvironmental impact.
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 andservices. And we make effort to preserve the global environment by environmentally conscious activities.
1. We actively promote environmental conservation by establishing and continually improving aenvironmental management system.
2. We comply with applicable legal requirements and agreements and customer requirements related toenvironmental 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 the following measures for environmental
management:(1) We promote zero emission by recycling waste.
(2) We promote the appropriate management of specified chemicals (Target chemical for PRTRetc.), as well as reduction in percentage of these chemicals used in our operations.
(3) We make efforts to reduce carbon dioxide emissions by decreasing the usage rate of electricaland gas energy.
(4) We devise and implement manufacturing methods that impose fewer burdens on theenvironment.
(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 and prevent pollution by setting
environmental objectives and targets, by executing 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.
Management Reviews and Systems
We conduct internal environmental audits and hold Environment System Committee each year to ensurethat management systems are functioning smoothly. We position the Environment System Committee as
management reviews and strive to make continuous improvements using the PDCA cycle.
The Environmental Conservation Committee meets once a month for monitoring and prevention.
Environmental Conservation Committee members chosen from throughout the company participate in themeetings, which consist of three parts: dialogue with customers and local communities, global environmental
initiatives, and sharing of environmental information. They report on topics such as environmental
performance, customer demand, changes in environment-related laws and regulations, and environmental
monitoring around production bases, and confirm the status of initiatives.
Energy and Environmental Management Structures/Support for Bases
The Nissha Group as a whole promotes the efficient use of energy. To comply with the Japanese Act on the

Policy and Management Structures

20

CSR Report 2011

Rational Use of Energy, in particular, we are making continuous efforts to strengthen the energy
management structures of each base and prepare management standards for related equipment. We haveworked not only toward energy-related goals but also to build a unified system for communicating a varietyof environmental information, and to provide industrial pretreatment facilities and physically fortify the
support structures for production bases.

Nissha Environmental Management Structure

Energy Management and Environmental Communication Structures

Policy and Management Structures

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CSR Report 2011

Objectives and Status of Achievement
The company-wide environmental objectives we set in April 2009 covered the three-year period until fiscal
year 2012. In fiscal year 2011, the second year of implementation, individual environmental activity units
such as departments and workplaces set their own objectives and activity plans, and worked to achieve theoverall objectives. Despite the fall in sales, however, many targets per basic unit (=[emissions volume]/[netsales]) were not met due to an increase in electricity and gas use.
Triggered by factors such as the revised Act on the Rational Use of Energy, in late fiscal year 2011, werevised the environmental objectives in line with a change in targets per basic unit. The new company-wide
objectives will apply to the four-year period between fiscal years 2012 and 2015.
NISSHA environmental objectives (FY2012-2015)
1. Prevention of global warming
Base: average of fiscal year 2010 results * Compliant with the Act on the Rational Use of Energy.
Reduce CO2 emissions rate (basic unit*) by 5% or more from fiscal year 2010 levels by fiscal year 2015 across NISSHA(1) Nissha Printing Co., Ltd. and group companies reduce annual CO2 emissions rate (basic unit*) by 1% or more compared tothe previous year.
･ Basic unit* is set by company [Nissha Printing Co., Ltd. and individual affiliated companies].
･ Companies classified as "specified business operator" in the Act on the Rational Use of Energy use the basic unit* reported
under that act.
(2) Individual departments reduce energy consumption by improving work processes (efficiency) and quality.

2. Reduction of waste
Base: average of fiscal year 2011 results
Reduce waste generation rate (basic unit*) by 5% or more by fiscal year 2015 across NISSHA(1) Control waste generation
Division headquarters and factories set annual reduction targets based on a basic unit derived from production volume.
- Targets are set based on the same indicators as the CO2 emissions rate basic unit* for each company.
Production departments control waste generation by aiming to reduce the ratio of nonconforming products.
(2) Promote the selling of waste for recycling
Division headquarters and factories set individual target rates and work to sell waste for recycling.
(3) Maintain zero emissions (recycle ratio: 99.5% or more) across NISSHA
Division headquarters and factories set individual maintenance indicators for recycle rates and implement them.

3. Reduction of organic solvent usage rate
Base: average of fiscal year 2011 results(1) Production and development departments reduce usage rate {(usage or purchase volume) / (production or treatment
volume)} of PRTR-designated chemical substances (toluene, xylene, etc.) by 2% or more annually.
(2) Production and development departments reduce usage rate {(usage or purchase volume) / (production or treatment
volume)} of organic solvents not PRTR-designated by 1 % or more annually.

4. Environmental conservation activities through efforts in daily work
Environment-consciousness at each stage of development, product design, purchase of materials and sub-materials,
production, transport, and sales(1) Design environment-conscious products(2) Provide environment-conscious services(3) Select environment-conscious materials, sub-materials, production methods, and logistics(4) Install environment-conscious equipment

Objectives and Status of Achievement

22

CSR Report 2011

Fiscal year 2011 results
Self-assessment rating
achieved: Targets achieved△ : Targets partially achieved: Targets not

Waste reduction, recycling
Fiscal year 2010-2012
Nissha environmental objective

Fiscal year 2011 results

Waste zero emission (recycle ratio:
99.8% or more)
5% or more reduction in ratio of waste(including items sold for recycling) to
net sales

Recycle ratio at Nissha Group in Japan:
99.9% (Objective achieved)
We were able to reduce waste, but
certain units did not achieve theirobjective due to decreased sales.

Evaluation- (Base year: the average for the period
between April and September 2008)
Production departments to prevent
waste generation by reducing the ratio
of nonconforming products (Numericaltargets to be established for eachproduction unit)

Certain business units did not achieve
their objective due to changes in
production methods such as toaccommodate ever-stricter productappearance standards and the shift indemand to highly complex products.

Prevention of global warming
Fiscal year 2010-2012
Nissha environmental objective
New challenges
Reduce the CO2 emissions rate (total
emissions volume/net sales) by 5%(even a 5% increase in sales will not
result in increased total CO2
emissions)-Administrative offices to set goals per
square meter

Fiscal year 2011 results

Evaluation

Fiscal year 2011 CO2 emission rate at
Nissha Group in Japan: 0.79. This
was a 0.3-point increase compared tofiscal year 2009. Despite our
promoting the reduction of fluorescentlighting and the installation of energysaving machinery, we did not achieve
our objective due to decreased sales
and increased electricity and gas use.

Prevention of environmental pollution
Fiscal year 2010-2012
Nissha environmental objective
Reduction in usage ratio of organic
solvents (Base: the average for theperiod between April and September
2008)

Objectives and Status of Achievement

Fiscal year 2011 results

Evaluation

We did not achieve our objective due tosmall production lots at Nitec
Industries, Inc and increases in thevolume of ink usage to accommodate
the shift in demand to highly complex
products.

23

CSR Report 2011

Burden reduction by manufacturing and development
Fiscal year 2010-2012
Nissha environmental objective

Fiscal year 2011 results

Adoption of environment-friendly
manufacturing processes, raw andprocessed materials, sub materials,
packaging, and logistics

Nitec Industries, Inc Kameoka Factory
implemented green purchasing of submaterials
Nitec Printing Co., Ltd. established the
CTP (Computer to Plate) technology inthe film output process

Development of environmentconscious products

Developed and tested dye-sensitizedsolar cell modules
Developed de-chlorinated foil andcommenced mass production

Offering manufacturing processes andproducts that reduce the environmentalload of customers

NCP Co., Ltd. promoted the proposalof websites, a paperless media
Revised the Nissha Control Criteria forEnvironmental Management Substance

Evaluation

OthersFiscal year 2010-2012
Nissha environmental objective
Promotion of environmental
conservation activities through efforts
in daily work

Fiscal year 2011 results

Evaluation

Conducted monthly Lights Down
Events at Nissha Group offices
Implemented audits of major Nissha
suppliers
Implemented internal audits of eachbase related to environmental laws andregulations
Conducted 6S patrols at Nitec
Industries, Inc plants
Conducted environmental workshops
for elementary schools

Growing of (Wild) Thoroughwort
In one of our initiatives to preserve biodiversity, we obtained and grew wild thoroughwort. This is aperennial plant of the Compositae family listed as Near Threatened in the Red Data Book of Japan’s
Ministry of Environment and Critically Endangered in that of Kyoto Prefecture. Ours bloomed onschedule, between September and October, and we displayed them in the company in an effort tospread knowledge about preserving biodiversity.

Thoroughwort blooming on Headquarter premises

Objectives and Status of Achievement

Thoroughwort displayed in the company

24

CSR Report 2011

Impact as a Result of Business Operations
We strive to identify the impact of our business operations on the environment in terms of resources andenergy usage (INPUT) and gas, water and waste emissions (OUTPUT). This section shows the volumes ofeach category in a list covering Nissha Group’s business operations in Japan in fiscal year 2011.

Environmental Impact Caused by Nissha Production Bases in JapanThe use of major raw materials in the Devices Business has come to comprise about 10% of the whole, witha nearly 1.5-fold increase compared to fiscal year 2010, due to rises in production volume at the Kaga
Factory (Nitec Precision, Inc.), the key production factory. That in the Industrial Materials Businesscomprises about 26% of the whole, for an approximately 7% decrease compared to fiscal year 2010, despite
the new opening of the Tsu Factory. That in the Information and Communication Business, at about 64%,
continues to comprise the largest part of the whole, with the majority of materials used being paper for
printing.
In resources “INPUT,” the use of major raw materials slightly decreased compared to the previous year,
whereas energy use increased some 18% in electricity and some 16% in gas. As a consequence,“OUTPUT” in terms of CO2 emissions increased approximately 11% as well.
Emissions of VOC from the use of solvents and ink in the Industrial Materials Business remained
approximately the same as fiscal year 2010 levels, however, actual emissions into the atmosphere havedecreased substantially due to the installation of a VOC combustion and treatment facility at the Kameoka
Factory(Nitec Industries, Inc.)in late fiscal year 2010.

Impact as a Result of Business Operations

25

CSR Report 2011

Environmental Accounting
Fiscal Year 2011 Environmental Accounting Results and Issues
Environmental conservation costs amounted to some 1.33 billion yen in fiscal year 2011. By category,business area costs made up the largest portion, at around 75%. Costs for three Factories of Nitec
Industries, Inc., which handles production for the Industrial Materials Business, were highest, mostly
consisting of the depreciation cost for large facilities we installed in fiscal year 2011, such as the VOC
combustion unit and the scrubber unit for the plate making process. We are striving to comply withenvironment-relate laws by responding to new issues that are expected to arise from the building of new
factories. Following business area costs, R&D costs made up the second largest portion of the whole, ataround 15%, mostly consisting of the cost for an analyzing device for chemical substances and personnel
costs. Administration costs made up around 7% of the whole but are decreasing.
A large part of our environmental conservation expenditure comprised costs, of which depreciation costs
and property taxes for industrial pretreatment facilities totaled 46%. This was followed by external costs suchas facility maintenance and administration fees, at around 29%, and personnel costs, at around 20%. We
have calculated upstream/downstream costs mainly from the cost of our supplier management group’s
activities, which started in fiscal year 2011.
The scope for calculations this time includes all bases in Japan, in contrast to Headquarters in the past.
We plan to continue preparing environmental accounting data in the next fiscal year and onward, and hopeto make the data even more meaningful such as by dividing it into maintenance costs for complying withenvironment-related laws and regulations and costs for actively reducing environmental impact (toward ourenvironmental objectives and targets).

Environmental Accounting

26

CSR Report 2011

Environmental Conservation Cost(Categories Corresponding to Business Activities)
Scope of calculations:Nissha Group companies in Japan
Target period: April 1, 2010 – March 31, 2011
Unit: (Thousand) yen
Category

Investment amount

Cost amountContent

981,269- Pollution prevention cost,
Global environmental
conservation cost, Resource
circulation cost

20,400- Requesting / testing
suppliers for the reduction ofenvironmental impact fromraw and packaging materials- Educating / guiding
outsourcing companies onenvironmental conservation- Cost for recycling
containers, packaging, etc.

96,802- Cost for measuring
environmental impact- Building / maintaining anenvironmental management
system- Environmental training of
employees- Greening business units

173,891- Developing / improving
products toward the
reduction of environmental
impact(5) Social activity cost

15,436- Social contribution
activities, etc.

(6) Environmental
remediation cost0(1) Business area cost

22,700(2)Upstream/
downstream cost(3) Administration cost(4) R&D cost

Total

Environmental Accounting

20,00042,7001,287,798

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CSR Report 2011

Environmental Conservation Benefit
Scope:NISSHA in Japan
Target period: April 1, 2010 – March 31, 2011

FY2009FY2010Change from
FY2010FY2011

Total energy input
volume (GJ)

1,285

1,280

1,612

332

Electricity consumption
volume (MWh)94,397

94,216

111,055

16,839Town gas consumption
volume (thousand m3)

7,027

8,197

9,540

1,343

Gasoline, diesel fuel,and fuel oil consumption
volume (kl)

182

164

121

- 43

PRTR-designatedchemical substances(toluene) consumption
volume (t)

1,049

1,084

1,084

- 327

Major rawmaterials/production
department materials
input volume (t)43,50044,80044,310- 490

Water resources input
volume (thousand m3)

671

705

730

25

-

-

140

-

Tap water (thousand m3)

435

499

461

- 38

Underground water(thousand m3)

236

206

129

- 77

Greenhouse gas
emissions volume (tCO2)

62,534

72,984

81,1238,139

VOC emissions volume(including that before
combustion andtreatment) (t)

3,386

3,370

3,300

- 70

Waste, etc.(includingthat sold for recycling)
emissions volume (t)12,56913,45812,541

- 917

Waste
combustion/landfill
treatment volume (t)

73

82

16

- 66

Total wastewater volume(thousand m3)

600

670

710

40

NOX Kameoka (MAX)
(ppm)

110

99

110

11

Noise Kameoka (MAX)
(dB)

63

63

63

0

Vibration Kameoka(MAX) (dB)

32

35

31

-4

Wastewater SS Kaga(MAX) (mg/L)

22

13

8

-5

Wastewater BOD Kaga(MAX) (mg/L)

15

35

28

-7

Industrial water(thousand m3)

Environmental Accounting

28

CSR Report 2011

Prevention of Further Global Warming
Status of CO2 Emissions at NISSHA
In fiscal year 2011, CO2 emissions from Nissha bases in Japan totaled 81,123 tons, significantly exceeding
72,984 tons in fiscal year 2010 by about 11% (approximately 8,139 tons).
CO2 Emissions from overseas production bases amounted to 8,456 tons, for an increase of approximately
9% compared to 7,732 tons in the previous year.
The increase at bases in Japan resulted from the new addition of emissions from the Tsu Factory (Nitec
Industries, Inc.) and Himeji Factory (Nitec Precision and Technologies, Inc.). Equipped with large facilities
such as VOC control equipment and clean rooms, the two factories combined emitted some 15,054 tons of
CO2 even before the start of their full-fledged operation. Conversely, emissions from Headquarters
decreased by 30% (4,521 tons), and that from existing bases continued to generally decrease or to remainlevel.
Despite the closing of Nissha Korea High Precision Plastics Inc., CO2 emissions from overseas bases
significantly increased at Southern Nissha Sdn. Bhd., Nissha (Kunshan) Precision IMD Mold Co., Ltd., and a
subsidiary of Nissha USA, Inc., Eimo Technologies, Inc. At 4,755 tons, emissions from Eimo Technologies,
Inc. accounted for more than half of total overseas base emissions.
Trends in CO2 Emissions Volumes and Basic Unit

Prevention of Further Global Warming

29

CSR Report 2011

Trends in Gas Consumption

Trends in Gasoline, Diesel,and heavy oil
Consumption

Trends in Electricity Consumption

Trends in Energy Consumption

Prevention of Further Global Warming

30

CSR Report 2011

Basic Unit* Management in Line with Legal Requirements
In fiscal year 2011, with the current basic unit targets, our CO2 emissions rate (per net sales) was 0.79,
significantly higher than 0.61 in the previous year, due to the drop in sales and an increased use ofelectricity and gas.
In addition to this outcome, with the enactment of the revised Act on the Rational Use of Energy, thecomprehension and management of energy use became obligatory per company. To comply with this shift,
we have started managing emissions under a basic unit* management in line with legal requirements basedon factors such as production volume per company. With 1.00 indicating the benchmark fiscal year 2010
results of Nissha Printing Co., Ltd., and each affiliated company (production base), fiscal year 2011 resultsin light of targets (0.99 or less) were as follows. We have calculated the basic unit* for NISSHA in Japan
from a sum obtained by multiplying the energy use rates of each company. Nitec Industries, Inc., which uses
the largest portion of energy, affected the total, and we did not meet our fiscal year 2011 overall target.

Basic Unit
FY2010 Results

FY2011 Targets

FY2011 Results

Nissha Printing Co.,Ltd.
(Headquarters, Others)

1.00

0.99 or less

0.91

Nitec Industries, Inc.
(Kameoka, Koka, Tsu)

1.00

0.99 or less

1.26

Nitec Precision, Inc.
(Kaga, Kyoto)

1.00

0.99 or less

0.74

Nitec Printing Co., Ltd.
(Yachiyo, Kyoto)

1.00

0.99 or less

0.91

Nitec Mold Engineering, Inc.

1.00

0.99 or less

0.61

Total

1.00

0.99 or less

1.04

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Prevention of Further Global Warming

31

CSR Report 2011

Waste Management and Zero Emissions
Waste Management
In fiscal year 2011, Nissha bases in Japan generated a total 12,543 tons of waste for an approximately 7%
reduction compared to fiscal year 2010, and 16 tons of combustible/landfill waste for a more than 80%
reduction. We maintained zero emissions (a recycling rate of 99.5% or more), and achieved a high standardof 99.9% in fiscal year 2011.
Improvements in Recycling Initiatives
Amid a steady waste recycling rate of 99.9% at Nissha bases in Japan, we continued to work toward
improving the level of our initiatives by converting from material recycling to selling waste for recycling.
Each factory made efforts to sell waste for recycling, as it has the benefit of great cost reductions, andachieved a rate of 41.8% for a 3.2 percentage point increase compared to fiscal year 2010.
Due to fluctuations in waste treatment costs, however, the amount of waste plastic converted into solid fuel(thermal recycling) increased, for a material recycling rate of 61.4%, or a 4.3 percentage point decrease
compared to fiscal year 2010.
Status of Initiatives at Overseas Production Bases
Asian production bases Southern Nissha Sdn. Bhd., Guangzhou Nissha High Precision Plastics Co., Ltd.
Nissha (Kunshan) Precision IMD Mold Co.,Ltd. generated a total 192 tons of waste in fiscal year 2011 for an
approximately 17% increase (at the four bases) compared to fiscal year 2010.
Southern Nissha Sdn. Bhd., however, achieved its target recycle rate (87% or more), at 96.4%. Guangzhou
Nissha High Precision Plastics Co., Ltd.also achieved its target (70.9% or more), at 73.3%. Nissha(Kunshan) Precision IMD Mold Co., Ltd.saw changes in the contents of waste due to a shift in business
operations, and did not achieve its target.
Waste-related Risk Management
We recognize largely three types of waste-related risk:- Accidents and disasters caused by waste (including at outsourced treatment facilities)- Environmental pollution and violation of laws caused by inappropriate waste treatment- Leakage of confidential information from waste
We check the properties of our waste, down to each spray can, and monitor it so as to prevent spillage
during transportation and accidents at treatment facilities. We have set forth Nissha Guidelines for Waste
Management Standards, based on laws such as the Act on Waste Treatment and Cleaning and the Act on
the Control of Hazardous Materials, which we periodically review and strive to enable all bases to manage
waste safely under the same guidelines.
The guidelines also stipulate criteria for the selection of outsourced treatment facilities and for the regularinspection of such facilities that use their own checklists.
We further have in place standards for the management of waste containing confidential information, andpromote management in tandem with our information security management system (ISMS).

Waste Management and Zero Emissions

32

CSR Report 2011

Transition of Waste Converted Into Resources[Nissha Operations in Japan]

Exhibition at 11th Environment Forum Kyoto
In February 2011, we participated as an exhibitor at the
11th Environment Forum Kyoto sponsored by Kyoto
City.
Our showcase consisted of panels and samples of ourenvironmental initiatives such as the development ofdye-sensitized solar cell modules, environmental
workshop for elementary schools, company greening
and biodiversity activities, and the promotion of zero
emissions and selling waste for recycling.
The samples of recycled goods (trash bags) made ofEnvironment Forum Kyoto
waste plastic from the Nitec Precision, Inc. Kaga
Factory, in particular, invited visitor feedback: “I didn’t know much about NISSHA’s environmental efforts,and hope they will take more advantage of opportunities like this to share environment-related
information.”
We hope to continue communicating about our environmental initiatives.
Lecture on Waste-related Risk Management
In March 2011, we gave a lecture about waste-related
risk management at a seminar on the revised Waste
Disposal Act sponsored by the Environment
Conservation Association of Shiga Prefecture. We
presented our initiatives toward safe waste disposal,
the management of outsourced treatment facilities, andpreventing the leakage of confidential information
through waste.
The audience consisted of nearly 80 companies with
Lectureoffices in Shiga Prefecture, many of which shared theirimpressions through a post-seminar questionnaire: “The lecture helped to deepen my knowledge.”“NISSHA is a good company. It has a solid system for managing waste.” “I now understand not only theimportance but also specific methods of waste-related risk management.”

Waste Management and Zero Emissions

33

CSR Report 2011

Monitoring and Prevention of Pollution
Measures to Help Prevent Further Pollution
We undertake monitoring and measuring activities to prevent pollution. Based on strict voluntary standards,
we conduct periodic testing to voluntarily determine the level of atmospheric pollutants, wastewater quality,
noise, and foul odor.
Nitec Precision, Inc. (Kaga Factory) Measurements of Wastewater Quality

Nitec Industries, Inc. (Kameoka Factory) Measurements of Site Outer Boundaries

Nitec Printing Co., Ltd. (Yachiyo Factory) Measurements of Soot and Smoke

Monitoring and Prevention of Pollution

34

CSR Report 2011

Management of Chemical Substances
In fiscal year 2011, we reported the use of seven PRTR-designated chemical substances, of which two (nhexane and 1,2,4-Trimethylbenzene) were newly added with the revision of the PRTR Act.
Nitec Industries, Inc. (Kameoka Factory)

Nitec Industries, Inc. (Koka Factory)

Nitec Industries, Inc. (Tsu Factory)

Nitec Precision, Inc. (Kaga Factory)

Monitoring and Prevention of Pollution

35

CSR Report 2011

Status of Environmental Activities at Bases
Nitec Industries, Inc. (Kameoka Factory)
Location: Kameoka City, Kyoto Prefecture
Acquisition of ISO14001 Certification: December 2003
Production items: Transfer foils (the Industrial Materials business)

Nitec Industries, Inc. (Koka Factory)
Location: Koka City, Shiga Prefecture
Acquisition of ISO14001 Certification: June 2007
Production items: Transfer foils (the Industrial Materials business)

Status of Environmental Activities at Bases36

CSR Report 2011

Nitec Industries, Inc. (Tsu Factory)
Location: Tsu City, Mie Prefecture
Production items: Transfer foils (the Industrial Materials business)

Nitec Precision, Inc. (Kaga Factory)
Location: Kaga City, Ishikawa Prefecture
Acquisition of ISO14001 Certification: July 2003
Production items: Touch input devices (the Devices business)

Nitec Mold Engineering, Inc.
Location: Kameoka City, Kyoto Prefecture
Kyotango City, Kyoto Prefecture
Acquisition of ISO14001 Certification: June 2006
Production items: Molds (the Industrial Materials business)

Status of Environmental Activities at Bases37

CSR Report 2011

Nitec Precision and Technologies, Inc. (Headquarters / Himeji Factory)
Location: Himeji City, Hyogo Prefecture

Nitec Printing Co., Ltd. (Yachiyo Factory)
Location: Yachiyo City, Chiba Prefecture
Acquisition of ISO14001 Certification: December 2004
Production items: Printing and binding of books, catalogs, leaflets, etc., using sheet
offset press and rotary press

Status of Environmental Activities at Bases38

CSR Report 2011

Nissha Printing Co., Ltd. (Tokyo Division Headquarters)
Location: Minato-ku, Tokyo
Acquisition of ISO14001 Certification: December 2004
Services:- Sales and marketing (the Industrial Materials business, the Devices business)- Sales and marketing / planning and production (the Information and Communication
business)

Nissha Printing Co., Ltd. (Osaka Division Headquarters)
Location: Chuo-ku, Osaka City
Acquisition of ISO14001 Certification: December 2004
Services: Sales and marketing / planning and production (the Information andCommunication business)

Status of Environmental Activities at Bases39

CSR Report 2011

Fair Operating Practices
Initiatives Related to Information Security

Trade Management Improvement Project

We have established a highly reliable and secure
information security management system and arecommitted to maintaining and further improving its
effectiveness.

We launched the Corporate Logistics Planning
Office, whose mission is compliance and the
optimization of logistics from a corporate-wide
perspective.

Initiatives Related to Intellectual Property

Partnership with Our SuppliersWith the aim of expanding the performance ofbusiness units and ensuring a competitive
advantage for new businesses, it works toestablish intellectual property strategies for theentire Nissha Group and meet internal needs tosecure intellectual property rights.

Fair Operating Practices

In fiscal year 2011, we established the Nissha
Supplier Requirements (NSR), which sum up ourneeds concerning topics like quality, information
security, and environmental conservation.

40

CSR Report 2011

Initiatives Related to Information Security
We have in place an Information Security Policy, which expresses our basic approach to maintaining andfurther improving our highly reliable and secure information security management system. Based on thispolicy, every employee is working to ensure continuous security in handling personal information andconfidential information provided us by customers.

Information Security Policy
Nissha and its subsidiaries are committed to establish, maintain, and improve a highly reliable andsecure information security management system to protect our own business information and theinformation assets, which we acquire from customers, suppliers and employees, etc., through ourbusiness activities performed in Japan, from any kinds of threat. And we take internal and external
information security requirements into consideration and reduce all risks below the acceptable levels.
1.We continually improve the Information security management system by establishing,implementing, and reviewing the information security objectives, so that the confidentiality,
integrity, and availability of information can be maintained and improved.
2.We 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 the information
security levels that contribute to corporate development.
4.We make the Information Security Policy known to all employees working in the premises ofNissha and its subsidiaries to raise their awareness of the issues related to information security.

Initiatives Related to Information Security
We are striving to improve our information security management system to respond to customers’ andsociety’s expectations toward information security and the convenience and risk that accompany progresses
in information technology.
In addition to physical and system-based management, we believe that raising each employee’s awarenessis crucial to information security, and accordingly have in place and implement education programs byposition such as for new employees and for more experienced workers.
We address issues that have become evident throughout society, for instance, cases in which pre-releaseproducts are posted on YouTube. To prevent such incidents in NISSHA, we have taken on original
measures by confirming that all business units are appropriately managing, including preventing theft of,assets like documents, products, work in progress goods, and samples. We are also focusing on issues
hidden around us, such as the management of confidential information regarding our transactions with
suppliers, by implementing risk assessment from various angles to raise the level of our measures.
We recognize ISO 27001 inspections, ISMS internal audits, and even questionnaires filled out by customers
as opportunities for improvement, and strive to link them to the continuous spiraling up of information
security levels. Our efforts extend beyond the operation level to improving mechanisms toward the goal offurther optimizing information security.
We periodically publish these initiatives in the “Information Security-related Incidents” internal newsletter inan effort to raise employee awareness and allay security-related risks.

Initiatives Related to Information Security

41

CSR Report 2011

Trade Management Improvement Project
In an aim to enhance the level of our export operations and achieve trade management at the corporate
level, in April 2010, we set up a Trade Management Improvement Project Team, which has implemented
compliance with trade-related laws, security export control, deliberations over related internal regulations,education of project team members, and preparations for in-house training.
In October that year, we launched the Corporate Logistics Planning Office, whose mission is complianceand the optimization of logistics from a corporate-wide perspective, to take over the project team’s
implementation items and operations.

Trade Management Improvement Project42

CSR Report 2011

Initiatives Related to Intellectual Property
Approach to Intellectual Property
We stipulate the protection of intellectual property in our basic policy. The Corporate Ethics and ComplianceDeclaration established in 2008 stipulates: “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 throughthe proper channels.” Based on this policy, we make active efforts to respect the intellectual property of third
parties and to obtain rights for and use that of our own.
The Intellectual Property Department acts as the central body for protecting intellectual property. With theaim of expanding the performance of business units and ensuring a competitive advantage for new
businesses, it works to establish intellectual property strategies for the entire Nissha Group and meetinternal needs to secure intellectual property rights.

Major initiatives
Intellectual Property Training Programs
We organize internal training programs so that employees
may deepen their understanding of and properly protect
intellectual property. Through several sessions a year,
participants learn in detail about intellectual property law,
how to research other companies’ patents, and about
promoting technological development and filing for patentapplication. We either invite an outside specialist or
appoint a member of the Intellectual Property Department
to serve as instructor for these sessions.

Instructor: Naoki Akiyoshi, TechnoProducer
Corporation

Monitoring of Other Companies’ Patents
We periodically research and continuously monitor other companies’ patents so that our products do not
infringe others’ patent rights. For monitoring, we input the subjects as the search criteria in a patent
database and obtain results on a regular basis using a selective dissemination of information (SDI) system.
Promotion of Patent Application
We aim to file for patent application and obtain rights for new technologies developed in the production
departments. To respond to the increasing globalization of our business activities, this requires us to file forapplication not only in Japan but also abroad. But since the promotion of technological development and theobtaining of patent rights help to differentiate our products, made with our own distinctive technologies, fromother companies’ products—meaning that our products were not made with the inappropriate use of others’
technologies—it also helps to reduce intellectual property-related risks for customers in connection with our
products.

Initiatives Related to Intellectual Property

43

CSR Report 2011

Partnership with Our Suppliers
Partnership with Our Suppliers
To retain the trust of global markets, we believe it isimportant to work in unity with our suppliers toward
strengthening our organization and improving ourcapabilities.
In fiscal year 2010, we established the Basic Purchasing
Policy, which sets forth our approach to purchasing, andimplemented CSR procurement briefings mainly formaterials suppliers. During fiscal years 2010 and 2011, we
attracted participation from a total 108 suppliers
representing over 70% (in monetary value) of thematerials we purchase.
CSR procurement briefing session
In fiscal year 2011, we established the Nissha SupplierRequirements (NSR), which sum up our needs concerning topics like quality, information security, andenvironmental conservation. We explained the NSR items to major suppliers, including materials suppliers
and outsourcing companies and, having obtained their understanding, conducted audits of eight factories. In
a number of cases, through discussions with the suppliers, we found solutions for issues that emerged in theaudits.
We also conducted a survey on our requirements using a Supplier Check Sheet. We received responses
from 111 companies, and depending on the contents, confirmed the situation with the individual supplier andmade the opportunity to hold discussions toward improvement.
In fiscal year 2012, we are holding CSR procurement briefings mainly for outsourcing companies and work
to revise the NSR. And with understanding from our suppliers, we plan to carry on conducting audits in linewith NSR items. We will continue to work as one with our suppliers toward enhancing the level of our supply
chain and meeting the demands of our customers and local communities.

Partnership with Our Suppliers

44

CSR Report 2011

Consumer Issues
Initiatives to Enhance Quality
Revision of Quality Policy/Initiatives to Enhance Quality
We have seen rapid expansions in the Industrial Materials and Devices businesses in recent years. We are
no longer a mere printing company but a manufacturing company founded on printing technologies. From aneed to establish quality structures on a par with the company’s scale, on April 1, 2011, we revised our
Quality Policy. It now clearly states that we will return to our origins as a manufacturing company and 1) aim
to stand up to the customers’ expectations and 2) pursue zero defects.
We are making company-wide efforts to build a mechanism to actualize these Quality Policy items, that is, toimprove our quality management system. Traditionally, we have employed a quality management system
based on ISO 9001 standards. We are currently focusing on establishing quality from the upstream to further
improve our products and services, and on applying the principles of process approach in all functions tobuild and improve our system.

Quality Policy
Nissha and its subsidiaries are committed to contributing widely to society through customer's trust andsatisfaction of quality, cost, delivery, services and speed.
1. We aim for quality that stands up to the customer's expectations.
2. We pursue Zero Defects in our products.
3. We provide products which satisfy customer requirements and conform to relevant legislation andregulations.
4. We establish and maintain a quality management system, and continually improve its effectiveness.

Nissha Quality Assurance Structure
We are promoting quality assurance initiatives to provide customers with reliable products.
In addition to the sales division, Quality Assurance responds to customer demands through on-site support
and customer service. It gives specific instructions to the relevant production department or group, whichacts swiftly and makes first contact with the customer within 24 hours of receiving the inquiry. All information
regarding customer enquiries is stored in a digital database. Relevant employees within the company canaccess 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, so that we may
implement appropriate quality activities based on their demands.
Quality managers from Japan are assigned to our bases in China (Shanghai, Beijing, and Shenzhen) andIndia (Chennai) to enable speedy responses to customers in the respective countries. Further, onsite
internal meetings are held with representatives from our bases in Europe and North America. Nissha is thus
constantly in tune with customer needs.

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Quality Assurance Structure

Quality Training
In fiscal year 2011, we implemented training for managers in the production departments of our Devices
Business. Having raised awareness of their roles and acquired necessary skills, the managers then returnedto their posts and conducted actual activities to improve the non-defective product rate.
We recognize human resources training in production departments as an important issue, and plan to widen
the scope and continue offering training in fiscal year 2012.
We also implemented project management training tailored to persons in charge of projects in our Devices
Business. This consisted of a practical-training program where participants could aim to learn the rules andprinciples of project management, acquire skills, and apply them to improving the contents of day-to-day
projects.
The activities to enhance project management that started with this training program are being implemented
into fiscal year 2012.
Control Criteria for Environmental Management SubstanceIn the fiscal year 2007, we formulated its Control Criteria for Environmental Management Substance thatclearly specifies the substances prohibited from use and those whose usage must be regulated. By
implementing these standards, we aim to ensure thorough compliance with relevant rules and regulations,
reduce environmental impact, and lessen the harmful effects on living organisms, including human beings.
The management standards have been set at a level that meets customer expectations, and are revised in atimely manner to respond to changes in those expectations.
Acquisition of ISO9001 Certification
All Nissha production bases in Japan and overseas have completed theacquisition of ISO9001 certification, the international standard for quality
assurance. In line with ISO9001 standards, we are operating an objective
quality management system based on facts and figures and are working to
make continual improvements to quality.

ISO9001 certificate

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Community Involvement and Development
Promoting Communication with Local Communities
In fiscal year 2010, we launched communication activities to build mutual trust with local communities. In
fiscal year 2011, each production base, led by Local Communication Promotion Commissioners, carried on
setting and working toward targets appropriate to their respective communities. Our approach to thisinitiative is given in the Framework for Promoting Communication with Local Communities (see figure
below).
Basic responsibilities consist of the duties the company ought to fulfill as a member of society. This includes
reducing environmental impacts that arise from business activities, and raising employees’ awareness ofcorporate ethics and compliance such as by boosting their morale. Social contribution activities, on the other
hand, involve verifying the issues and needs of a given community and making efforts to respond to them.
Our goal is to be a constructive company that is needed by society.
Basic responsibilities and social contribution activities are both important; neither alone can achieve CoExistence with society. Our aim is to keep the two wheels of “responsibilities” and “efforts” in motion, andthereby to be a constructive company that is needed by local communities.

Framework for Promoting Communication with Local Communities

Basic Social Contribution Policy
We set forth our approach to social contribution in the Basic Social Contribution Policy. With a focus on fourmain fields—environmental protection, next generation support, promotion and support of arts and culture,and human support—the policy expresses our desire to use our management resources effectively andcontribute to society under the spirit of global citizenship. With this policy as a base, we hope to engage
more effectively and more actively in social contribution activities.

Basic Social Contribution Policy
Nissha and Nissha People contribute to society under the spirit of global citizenship by using their
management resources effectively toward the achievement of the Corporate Mission.
• Main fields of contribution: environmental protection, next generation support, promotion and support ofarts and culture, and human support activities.

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Machikusa (“Wild Town Plants”) Workshop in Cooperation with Local NPO
We and non-profit organization (NPO) Kids Meet Artists, based in Kyoto City, jointly hold Machikusa
Workshops. Children explore the local community for weeds, give them original names, and present theirfindings to each other. The initiative aims to spark interest in the immediate natural environment, nurturehearts that care for all life, and stir the children’s imagination.
In fiscal year 2011, we held the workshop with third-grade students attending Suzaku dai7 Public elementary
school in Kyoto city, located near Nissha Printing Co., Ltd. Headquarters.
On day one, under the direction of artist Shinpei Shigemoto, aka Doctor Machikusa, the children went on aquest for wild plants on their school premises. They photographed the weeds, gave them names of theirchoice, and then returned to class and made their presentations. “Straight Spine,” “Elephant Nose,” “Palmof-the-Hand” The creative names invited both nods of approval and giggles.
On day two, the children divided into groups and arranged the plants they found on the school grounds into
maps. They discovered that much vegetation thrived in places they didn’t give a second thought to before.
And on day three, Shigeru Matsutani, director emeritus of the Kyoto Botanical Garden, visited the school
and delivered a speech titled “The Wonders of Plants.” He gave a lesson filled with surprises and awe in
which the children examined burs, or prickly clinging plants, with a magnifying glass, and experimented withgreens in the pea family that were traditionally substituted for soap.
We contributed to the workshop in a way we know best: we made posters and leaflets of the maps thechildren compiled and gave them to the participants as gifts.

Machikusa Workshop on school
premises

Map-making by group

Lesson by Shigeru Matsutani

Local Community Power Map in Cooperation with Ritsumeikan University
From October to December 2010, we participated with the Sasatani Laboratory at Ritsumeikan University ina Local Community Power Map-making project undertaken by Suzaku dai3 public elementary school in
Kyoto city. The elementary school district is rich with history and tradition, with temples linked to theShinsengumi special police force from Japan’s late shogunate period and Yuzen textile-dyeing studios
nearby. The university students helped a group of third graders, who call themselves the “community culture
explorers,” to gather material and photograph these sites and compile a map that introduces the local
community. We printed the map into a leaflet and gave them to the participants as gifts.
The event was organized to educate the children about their wonderful community and to encourage them tointeract with university students as well as local residents and businesses. For us too, it was a good
opportunity to strengthen communication with the local community.

Local community power map-making
Local community power map leaflet

Publicity on Environmental Conservation at China’s Kunshan City
In October 2010, group company Nissha (Kunshan) Precision IMD Mold Co., Ltd. conducted publicity toraise awareness about environmental conservation and cleaned up litter at a park in Kunshan City. The
activity communicated that our smallest efforts lead to the preservation of the global environment, and was

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even covered by a local newspaper.

Environmental conservation publicity and cleaning up
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Independent Report
On the Nissha Printing Co., Ltd. CSR ReportCreating Structures for Building a Stronger, Truly Global Company
Nissha Printing Co., Ltd. is currently implementing internal reforms. I
highly evaluate that it recognizes the urgency of building management
structures to oversee the entire group, which has expanded globallywith the shift in the company’s businesses to reflect changes in thesocial landscape, and that based on this recognition, it is reviewing
the large framework of its quality management system, including
strategies for supply chain and logistics, in an aim to create evenmore efficient structures committed to CSR management.

Professor, Graduate School of Business
Administration,Kobe University, Japan
Katsuhiko Kokubu

Necessity of Indexing CSR Items
This report is compiled in line with the seven core subjects of ISO 26000. I welcome that they are aware of
the international standards of CSR, as listing activities based on those standards can clarify the strengths
and weaknesses of the global company’s initiatives. One challenge henceforth might be to compare CSRrelated objectives with actual performance. I hope the company will consider informing stakeholders of the
progress of its CSR activities as much as possible in quantitative data, as this would demonstrate that its
PDCA cycle for CSR-related issues is working effectively.
Response to Environmental Conservation
In fiscal year 2011, they saw an increase in environmental impact, as evidenced by rises in energy use andCO2 emission volumes; that is, its performance declined in terms of basic-unit environmental indicators per
net sales. While this was due to changes in product lineup and the operation of new factories—inevitable for
a company during transition period—in this day and age where total reductions are the norm, a company’s
measures are required to take into account growing environmental impact from changes and expansions in
its business. I recommend setting common targets throughout the group, like resource productivity, as
environmental performance is best improved when linked with production efficiency.
Change in Publishing Media
Their CSR Report is published only online starting in fiscal year 2011. This is friendly to users who rely on
web search functions, and very convenient for those who know what they are looking for, as it is easy to findneeded information. However, I feel it would be better to continue releasing PDF-format reports, which givea fuller picture of the entire document. I hope that in the future, they will build a closer link between its CSR
Reports and other information, and work to further enhance the value of its corporate information as awhole.

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CSR Report 2011

Editorial Policy
Editorial Policy, Period Covered and Scope of Reporting, and Guidelines Used as Reference
Editorial Policy
CSR Report 2011 has been compiled with the objective of disclosing to our numerous stakeholders,
including customers, information regarding Nissha’s initiatives and business performance in the fiscal year
2011 (April 1, 2010-March 31, 2011). Please note that CSR Report 2011 is released only in online format,
and a paper-based report has not been printed.
Period Covered and Scope of Reporting
Period covered: Information and numerical data contained in this report, in principle, covers the period from
April 2010 to March 2011. Some reporting has also been done regarding activities carried out after April
2011. Numerical data has been compared with corresponding data for the three-year period between April
2008 and March 2011.
Scope of reporting: The information and numerical data contained in this report mainly focus on activities
conducted by Nissha Group. Where information for the entire group is not available, the scope of reportinghas been indicated separately in footnotes on each relevant page.
Nissha Printing Co., Ltd. refers to the parent company alone. NISSHA and Nissha Group refer to Nissha
Printing Co., Ltd. and its group companies. The Headquarters and affiliated companies, such as Nissha
Intersystems Co., Ltd., located within the headquarter premises are collectively referred to as the“Headquarters”.
Technical terms and other terminology unique to Nissha have been explained within the text or in separate
footnotes throughout the report.

Guidelines used as reference- Environmental Reporting Guidelines 2007, issued by the Japanese Ministry of the Environment- Sustainability Reporting Guidelines 2006 (Global Reporting Initiative)- ISO26000

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