2016 Edition

The Akita Plant

Table of Contents
Subject
Page
Message from the President ........................................................... 3
Company Overview ......................................................................... 4
Map of NLT Technologies Business Sites ....................................... 5
Main Products ................................................................................. 6
Environmental Policy ....................................................................... 7
Environmental Management Organizational Structure ................... 8
Environmental Management System .............................................. 92015 Results .................................................................................. 10
Environmentally Friendly Products …...…………………………… 11
Chemical Substances Contained in Products System .................. 12
Environmental Impact Mass Balance ............................................ 15
Preventing Global Warming (Promoting Energy Conservation) .... 16
Controlling Chemical Substances ................................................. 17
Waste Control ............................................................................... 18
Legal Compliance ......................................................................... 19
Risk Management ......................................................................... 202016 Targets ................................................................................. 21-2-

Message from the President
Based on a keen awareness of our natural environment,
NLT Technologies strives to achieve earth-friendly
production methods.
Having set the goal of becoming the premier supplier of industrial display solutions
globally, we will continue strengthening our customer focus and maintain a strong
commitment to innovation and a willingness to take on new challenges in order tomaintain our technical advantage, as we deepen our alliances with our parent
company Tianma Micro-Electronics Group and other members of its group ofcompanies.
We proactively and consistently address environmental issues as a cornerstone of ourcorporate social responsibility (CSR) activities. In 2015, as part of environmental
initiatives in the sphere of product development, we developed SFT2 forcommercialization, a technology that helps reduce display power consumption bysignificantly increasing aperture ratios. We also eliminated all use of mercury from ourbacklights and reduced product power consumption by completely replacing the cold
cathode fluorescent lamps (CCFLs) formerly used in product backlights with LEDs.
We are making progress in the following areas under the company slogan, to achieve
earth-friendly production methods, based on an awareness of nature. These efforts
are based on a keen awareness of the impact company activities have on the naturalenvironment.
• Contributing to the development of an energy-onserving society by developing
applications for LCD displays with low environmental impact, such as low energy
consumption and light weight.
• Creating environmentally sensitive products in various ways, including green
procurement and compliance with RoHS directives.
• Continuing initiatives to reduce the environmental impact of manufacturing activities
at our plants.
We intend to continue contributing to thedevelopment of a sustainable society byappropriately directing the knowledge andexperience of all our employees.
We welcome frank comments and opinionsfrom our stakeholders to help guide our future
actions in the area of environmental management.

Deshu Yu, President
NLT Technologies, Ltd.

-3-

Company Overview
Name: NLT Technologies, Ltd.
Address: 1753 Shimonumabe, Nakahara-Ku, Kawasaki, Kanagawa, Japan
Established: April 1, 2003
President: Deshu Yu
Capital: 4.3 billion yen
Lines of business: Research, development, design, manufacture, sale, andmaintenance of color / monochrome display modules and related electronic
devicesNumber of employees: Approximately 600[History]
Mar. 1989

Color LCD Development Promotion Headquarters established.

Apr. 1992

Color LCD Division establishedNov. 1993

Acquired ISO 9002 certification

Feb. 1994

Acquired ISO 9001 certification

Jul. 1997

Acquired ISO 14001 certification

Apr. 2003

NEC LCD Technologies, Ltd. established as independentcompany

Apr. 2007

NEC Akita and NEC Kagoshima were merged into NEC LCD
Technologies

Dec. 2009

Production consolidated at Akita Plant

Jul. 2011

Under the joint venture with Shenzhen AVICOPTOELECTRONICS, LTD., the company name haschanged to NLT Technologies, Ltd.

Aug. 2014

Acquired ISO/TS 16949 certification-4-

Map of NLT Technologies Business Sites
NLT Technologies sells products researched and developed at the Head Office andproduced at the Akita Plant. It produces TFT LCD displays in a wide range of sizes,
based on intended applications, from two sizes of glass substrates.

Akita Plant

Product
Production line A1
Starting substrate size: 370470 mm
Production line A2
Starting substrate size: 550660 mm

Akita, Akita
Prefecture

Kawasaki,Kanagawa Prefecture
Osaka,
Osaka Prefecture
Sales Dept I(West Japan Area)

Sales

-5-

Head Office

R&D and sales

Main Products
Shown below are some of the main products. These products are characterized by energyconserving performance achieved through low power consumption.

<Monitors>
These are used as monitor panels in highend and professional fields: for example,
as high-definition monitors for the medical
and graphics applications.

<Industrial use>
These are used across a wide range offields, including panel computers andmeasurement equipment andbroadcasting.

-6-

Environmental Policy
One of our goals as a global corporation is to help achieve a sustainable society.
We are actively engaged in global environmental preservation activities in thedevelopment of our display products and production technologies. Key objectivesof our environmental policy are:
1. Make continual improvements to NLT Technologies’ environmental management
system to enhance our environmental performance.
2. Reduce the environmental impact associated with our products and manufacturing
processes as far upstream as possible to prevent pollution and protect theenvironment.
i Throughout a product’s life cycles, from material procurement to disposal,
NLT Technologies strives to save energy and purchase green wheneverpossible to provide green products, and minimize the environmental impactof our products and technologies.
ii Endeavor to reduce the environmental impact in our manufacturing processes
using measures such as energy and resource conservation and waste reduction.
3. Comply with applicable legal requirements and with other requirements to which
NLT Technologies subscribes related to its environmental aspects.

Established: April 1, 2016
Deshu Yu, President
NLT Technologies, Ltd.

-7-

Environmental Management Organizational Structure
We established the environmental management organization outlined below to advance
activities in accordance with our environmental management system (EMS).
The President appoints the Corporate EMS Representative, Deputy Representative, District
EMS Representatives, Corporate EMS Secretariat, Chief Auditors and others. The District
EMS Representatives make decisions and appointments related to the organization ofthese structures within their districts, establishing clear roles and responsibilities of eachposition through in-house rules.

-8-

Environmental Management System
We perform the following audits to accurately identify and confirm aspects of various issues,
such as the state of compliance with ISO 14001 standards, environmental impact reductions,environmental conservation, and the control of chemical substances occurring in products:
environmental internal audits performed by in-house audit teams; and environmental
management system audits performed by third-party auditing agencies.
We share information on issues and improvements in each district to promote sustained
improvements.

An EMS audit at Akita Plant

Certificate Number: 09642
Original Issue Date
: 13 August 2013
Certificate Expiry Date : 21 December 2017-9-

2015 Results
Summarized below are the results of CY 2015 initiatives. 2016 initiatives will be based onthese results.

Assessment: Achieved : Achieved at rate of 80% or higher : Achieved at rate of under 80%

Targets

Results

Assessment

Promoting new supplier assessment

100%

100%



Maintaining a 100% green procurement rate

100%

100%



Maintaining 100% compliance with RoHS

100%

100%



Promoting paperless of specifications

60%
or more

98.3%



736.7
kg-CO2 /m2 or less

809.4
kg-CO2 /m2Reduction of chemical substances

38.6
kg/m2 or less

39.9
kg/m2



Reduction in waste emissions

17.7
kg/m2 or less

17.5
kg/m2



Items

Reduction in energy-derived CO2 emissions- 10 -

Environmentally Friendly Products
 NEW 4K2K LCD WITH THE PROPRIETARY SFT2TECHNOLOGY FOR ULTRA-HIGH TRANSMISSIVITYNLT Technologies, Ltd. has developed a new 19.5” diagonal 4K2K resolution LCD with aproprietary pixel structure that delivers high transmissivity and high-density color display.
The new LCD utilizes NLT’s proprietary new Super Fine TFT2 (SFT2) technology, whichis comparable to In-Plane Switching (IPS) and an evolutionary version of NLT’s
proprietary wide viewing angle technology, Super Fine TFT. NLT has attained an ultrahigh aperture ratio to achieve transmissivity levels 180% higher than those of
conventional technology even at high density LCD panels.
(1) Low power consumption
By improving the panel's light-utilization efficiency, high luminance is achieved while
keeping power consumption low. Combined with an optimal backlight design, thisenables power consumption to be reduced, delivering a power savings of approximately
35% compared with existing displays.
(2) Reduction of heat generation
Because the amount of power consumed by the backlight is dramatically reduced, theamount of heat generated by the LCD module is also reduced.
(3) Wide color gamut
NLT's proprietary new SFT2 technology combines outstanding viewing angle
characteristics with high transmissivity. A wide color gamut (NTSC ratio in excess of80%) is achieved without sacrificing luminance.

◆Figure: Comparison of aperture ratio

Conventional
Technology

SFT2
Technology- 11 -

Chemical Substances Contained in Products System (1) Green Procurement
We do our part to further green procurement, in this way helping to establish a recycling
society. We do this by expanding markets for green products, promoting the developmentof environmentally sensitive products, and raising awareness among designers anddevelopers. Green procurement prioritizes the purchase of materials with low
environmental impact. We have established green-procurement requirements for partsand materials and a green certification program for suppliers who meet theserequirements. Since 2005, we have maintained a green procurement rate of 100%. In
2015, we continue to make 100% of our purchases from green certified suppliers.

Essential Condition for Green Procurement of Parts and Materials
Category

Items to Be Checked

Approach
Environmental
management

Establishment of environmental management system
Non-use of substances banned from manufacturing
Process
Establishment of system for examination of chemical
Substance content

Products

Non-use of substances banned from products

 Restrictions on the Purchase of Substances
Prohibited from Use in Products
In addition to green procurement, we provided a list of environmental substances
restricted by NLT Technologies. These restrictions also include chemical substances
prohibited by specific customers and other individually designated chemical
substances. Copies of these restrictions are distributed to suppliers of parts andmaterials under the title Common Specification of Green Procurement. We ask
suppliers to assess the chemical substances found in parts and materials delivered tous, based on design diagrams and the Common Specification of Green Procurement.
The data collected in this way is registered into an internal database and shared foruse in selecting parts and materials at the design stage, as well as for productassessment. Procurement restrictions also apply to chemical substances occurring inshipping and packaging materials, for which similar surveying, data registration, andmaterials selection are conducted.

- 12 -

Chemical Substances Contained in Products System (2) Our products are RoHS compliant
The European Union (EU) issued a RoHS Directive,*1 taking effect from July 1, 2006, that
restricts the use of certain hazardous substances. As a result, electrical and electronicequipment containing any of the six target substances (lead, mercury, cadmium, hexavalentchromium, PBB*2 and PBDE*3) is restricted from the EU market.
Out of concern for the environment, NLT Technologies began reducing theuse of hazardous substances in our LCD modules prior to the RoHS directive. We
have eliminated the six substances targeted in the RoHS directives as well asother substances we have identified as potentially hazardous, so that our products
are now RoHS compliant.
The RoHS Directive underwent major revisions in July 2011. The updated RoHS Directive(RoHS II) went into effect in January 2013.
In June 2015, the Official Journal of the European Union also announced that the numberof restricted substances would grow from six to ten substances and that the addition of
restrictions on four phthalates*4 would enter into effect on July 22, 2019.*5 We remaincommitted to meeting all RoHS II requirements, including restrictions on phthalic acids.

Now

Starting July 22, 2019
Lead

Mercury
DEHP

DBP

BBP

DIBP

Hexavalent chromium
PBB

PBDE

*1 RoHS: The Restriction Of The Use Of Certain Hazardous Substances
In Electrical And Electronic Equipment*2 PBB: Poly brominated biphenyl*3 PBDE: Poly brominated diphenyl ether*4 Four phthalates
ＤＥＨＰ： Bis（2-ethylhexyl）phthalate
ＤＢＰ： Dibutyl phthalate
ＢＢＰ： Butyl benzyl phthalate
ＤＩＢＰ： Diisobutyl phthalate*5 The restriction shall not apply to monitoring and control instruments placed on the market
before 22 July 2021.

- 13 -

Chemical Substances Contained in Products System (3) Compliance with chemical substances restriction(REACH regulations)
In place from June 1, 2007, the EU REACH*1 regulations require the registration,
evaluation, and authorization of all chemical substances entering the EU, based on factors
such as volumes imported or produced.
For molded products containing substances of very high concern (SVHC*2) and SVHC
candidates in concentrations of 0.1% or more, a system must be in place throughout the
supply chain to communicate information such as substance names, volumes included, andinformation enabling safe use.
To comply with REACH regulations, we are currently developing a management systemthat incorporates BOM*3 management of the parts and materials used in products, surveysof the chemical ingredients used therein, and processing of the data collected.
*1 REACH: Registration, Evaluation, Authorization and Restriction of Chemicals*2 SVHC: Substances of Very High Concern*3 BOM: Bill of Materials

 Joint Efforts with Suppliers
As required by various measures such as the European Union’s RoHS directive, specificallydesignated harmful chemical substances occurring in products must be controlled. Eachcompany in the supply chain must implement efforts to ensure proper control of the chemical
substances found in various products.
As part of these efforts, we have developed an evaluation tool that promotes the proactive
control of chemical substances occurring in products among the suppliers themselves. To
ensure PMR*4 assessments, we distribute supplier assessment check forms to our suppliers.
These forms are used to control various chemical substances occurring in products.
Alongside spot inspections by NLT Technologies, such efforts improve supplier control
systems by enabling supplier self-assessments.
*4 PMR: Process Management Review- 14 -

Environmental Impact Mass Balance
The diagram below shows the resource volumes used in and the wastewater, carbon
dioxide, and waste generated at the Akita Plant in CY 2015.
In 2016, we will continue to strive to promote effective resource use; to promote energy
conservation initiatives; and to reduce resource use and emissions still further.

Production processes,
chemical substances
892 tElectricity
82,638 MWh

High-pressure gases(Nitrogen, oxygen, etc.)
23,701 t

Kerosene
34 kl

Akita Plant
City gas
4,855 km3

Industrial water
1,095 km3

CO2 emissions
71,172 t-CO2

Industrial waste
1,365 tProcess
wastewater
1,079 km3

Sale
190 t

- 15 -

General waste
20 t

Recycling
rate: 100%

Preventing Global Warming(Promoting Energy Conservation)
Recognizing global warming as an important environmental issue, we promote a wide
range of efforts to reduce carbon-dioxide emissions, including reductions in energy usedby plants, turning off lights when not needed, and using air-conditioning system inenergy conservation mode at our offices.
Pure-water humidification system adopted (from January 2009)

Previously, we used steam in air handling units
to maintain humidity levels inside clean rooms.
We are now switching to pure-water spray
humidification to cut the fuel and electricity
needed to produce steam.

 Pure water sprayed from spray nozzles

Factory wastewater waste heat recovery system adopted (from January 2014)
Production lines at the Akita Plant use pure water at temperatures of roughly 23°C,
generated using industrial water as the source water.
Since the temperature of the industrial water can fall to as low as roughly 4°C in thecoldest months of the year, the plant previously used steam to heat the water totemperatures suitable for use on production lines. Adoption of this system, which heats theindustrial water by running the waste heat from factory wastewater (roughly 20°C year
round) through a heat exchanger, has made it possible to reduce the amount of steam
used, reducing the volume of city gas used to produce steam.
Free-cooling system adopted (from January 2014)

Cooling tower

Taking advantage of Akita’s northern climate,this system conserves electricity for producing
cold water for air-conditioning use. This is doneby passing water cooled in a cooling tower by
outdoor air through a heat exchanger (or arefrigeration unit in summer and between
seasons).
(This is an application of a similar system
first adopted in 2010.)

Cooling waterpump

Heat exchanger
Refrigeration
unit

Header (S)Header (R)Load- 16 -

Chilled waterpump

Controlling Chemical Substances
Various chemical substances are used in processes related to manufacturing andprocessing wastewater and exhaust gas emitted from manufacturing processes. For
purposes of monitoring environmental impact and control over handling safety, we maintaina control structure of chemical substances, reduce the volumes of materials used, andpromote the transition to substances with lower levels of toxicity and environmental impact.

PRTR: Abbreviation for Pollutant Release andTransfer Register; used to control environmental
pollutant input and output.
Chemical substances(chemicals, gases)

PRTR (input/output) control

Assessment of the feasibility of adopting new
chemical substances(advance meeting to review environmental/
safety repercussions)• Advance confirmation of issues such as conditions
and behavior, volumes used, methods deployed,
and applicable laws and regulations
Exhaust gas,
wastewater

Periodic analysis andmeasurement(compliance with exhaust
restrictions)

Reducing environmental impact• Reducing volumes of chemical
substances used
• Transitioning to other chemicals• Halting use of chemical substances• Recycling, reuse

Controlling daily
handling• Locking storerooms• Managing trends involumes of chemical
substances used

Occupational health andsafety controls• Work environment
measurements• MSDS education, review- 17 -

MSDS: Abbreviation for Material Safety
Data Sheet. These documents provide
information, including the characteristics
and toxicity of various chemical
substances.

Waste Control
The Akita Plant continues to recycle all generated waste and to implement zeroemissions efforts through waste segregation and the “three Rs” (reduce, reuse, recycle).
To ensure all waste is disposed of properly, waste processing is contracted out tolicensed, specialized waste processing firms. Final processing is confirmed using
manifests. In addition, waste-processing facilities are periodically subjected to on-site
inspections.
Reduce: Streamlining processes, reducing volumes, reducing capacity, segregating waste

Segregating wasteby type

Reducing plastic
capacities
Increasing fluid
concentrations

Reuse
Waste
fluidsWaste plastics
Waste metals

Recycling by
manufacture

DeliveryReused as raw materials

Adding one more "R" to the "3 R's"

RecycleUse of aspavementmaterials

Solid fluid

Replace Shifting to lead-free solder

Materials at
processing
facilities

 Shifting to less toxic chemical
substances- 18 -

Reducing
negative
impactLegal Compliance
We confirm legal compliance in various ways, including internal environmental audits,and environmental compliance audits. No notable problems emerged in CY 2015.

Results of analysis and measurement at the Akita Plant (2015)<Wastewater measurements in mg/l (excluding pH)>
Subject

Value establishedjointly by the company
and Akita city

Item

Self-imposed
standard value

Measured value(average)

6.0 to 8.5

6.2 to 8.3

7.4

Biochemical oxygen demand (BOD)

25

20

1.9

Chemical oxygen demand (COD)

25

20

3.8

Suspended substances (SS)

30

15

1.4

Nonvolatile oil (normal hexane) content

10

1

<1

Chrome content

1

0.05

< 0.050.1

0.05< 0.05

Fluorine content

8

6

1.7

Phosphor content

To be measured

4

0.06

Nitrogen content

To be measured

60

8.3

Hydrogen ion density (pH)

Industrial wastewater

Hexavalent chromium compounds<Soot and smoke measurements>
Subject

Item

Value establishedjointly by the company
and Akita city

Sulfur oxide (SOx)
Cogeneration

Nitrogen oxide (NOx)Soot particles

Nitrogen oxide (NOx)Soot particles

K = 0.5

K= 0.12130 ppm

120 ppm

73 ppm3

0.1 g/m N

0.015 g/m N< 0.02 g/m3N

K=5

K = 0.5

K < 0.1

150 ppm

120 ppm

40 ppm3

Nitrogen oxide (NOx)Soot particles

30.15 g/m N

0.12 g/m N< 0.01 g/m3N

K=5

K = 0.5

K < 0.1

150 ppm

120 ppm

80 ppmSulfur oxide (SOx)
Smoke-tube boiler

Measured value(average)

K=5

Sulfur oxide (SOx)Once-through boiler

Self-imposed
standard value

30.15 g/m N

3

30.12 g/m N< 0.01 g/m3N<Exhaust gas measurements>
Subject

Acid/organic exhaustgas cleaning tower

Acid exhaust gas
cleaning tower
Separation exhaust gas
cleaning tower

Item

Value establishedjointly by the company
and Akita city

Self-imposed
standard value

Measured value(average)

Hydrogen chloride

To be measured

10 mg/m3N

0.33 mg/m3N

Hydrogen fluoride

To be measured

10 mg/m3N

0.25 mg/m3N

Isopropyl alcohol

To be measured

450 ppm

0.27 ppm

Ammonia

To be measured

3 mg/m N< 0.05 mg/m3N

Hydrogen chloride

To be measured

10 mg/m3N

0.19 mg/m3N

Hydrogen fluoride

To be measured

10 mg/m3N< 0.23 mg/m3N

Ammonia

To be measured

3 mg/m3N< 0.05 mg/m3N

Isopropyl alcohol

To be measured

450 ppm

20 ppm- 19 -

3

Risk Management
In-house facilities are inspected and swift countermeasures taken to prevent accidents.
These activities incorporate information shared on cases arising common plant
accidents across Japan.
We patrol facilities involved in environment activities and undertake periodic drills toensure appropriate response to chemical leaks and other incidents. A certification
system for operators based on certain standards has been established for firms
involved in supplying or transporting chemicals or collecting or transporting waste fluids.
Overall schedules are meticulously confirmed and comprehensive safety warnings
issued.
Before using any new equipment or chemical substances, we undertake advanceassessments and development procedures to closely examine aspects such as thepotential impact of chemical substances on the environment, safety, and products.

Drills in responding to environmental incidents such as chemical or gas leaks- 20 -

2016 Environmental Activity Targets
Based on inputs and the results of activities in the previous year, our CY 2016activities will have the following targets:

Items

Targets

Maintaining a 100% green procurement rate

100%

Maintaining 100% compliance with RoHS

100%

Reduction in carbon-dioxide emissions (from energy)

126.0
kg-CO2/m2 or less*

Reduction of chemical substances

6.7
kg/m2 or less*

Reduction in Waste emissions

2.9
kg/m2 or less** A method of calculating the intensity has been changed from the previous years.

- 21 -

NLT Technologies, Ltd.
[HEAD OFFICE]
1753, SHIMONUMABE, NAKAHARA, KAWASAKI, KANAGAWA 211-8666,JAPANContact: Development Division
TEL: +81-44-435-1666 (main switchboard)
FAX: +81-44-435-1927[AKITA PLANT]
3-1-1, SHIMOTSUTSUMI, GOSHONO, AKITA 010-1412,JAPAN

Information on our environmental initiatives is also available on the Internet:

http://www.nlt-technologies.co.jp

Published: April 2016 (subject: environmental activities in CY 2015)

Thank you for taking part in this survey.
Return to: Development Division, NLT Technologies, Ltd.
Fax: +81-44-435-1927

Please answer the following questions concerning your reactions to and impressions of the
NLT Technologies, Ltd. Annual Environmental Report 2016 Edition.
Q1. Did you find the Annual Environmental Report clear and easy to understand?
 Easy to understand Average

 Hard to understandQ2. How comprehensive was the coverage of the Annual Environmental Report?
 Full Average

 InsufficientQ3. Did you find any of the subjects of this year’s report particularly interesting? (Chose all answers that apply.) Message from the President

 Company Overview

 Map of NLT Technologies Business Sites

 Main Products

 Environmental Policy

 Environmental Management Organizational Structure

 Environmental Management System 2015 Results

 Environmentally Friendly Products

 Chemical Substances Contained in Products System

 Environmental Impact Mass Balance Preventing Global Warming (Promoting Energy Conservation)

 Controlling Chemical Substances Waste Control

 Risk Management

 Legal Compliance 2016 Targets
Q4. Can you describe your relationship to the company and your perspective as a reader of this report?
 Active in business transactions with NLT Technologies

 Product user

 Government, administrative body Environmental NGO or NPO staff

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 Media Other ( Student or educational institution affiliate)

Q5. How did you first learn about this Annual Environmental Report?
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 Newspaper, magazine)

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