MEIKO CSR Report 2010

CSR Report

2010

MEIKO Corporate Social Responsibility

5-14-15 Ogami, Ayase City, Kanagawa Prefecture, Japan 252-1104
Tel: 0467-76-6001 (switchboard)
ＵＲＬ：http://www.meiko-elec.com/

MEIKO GROUP
Corporate Social Responsibility

Message fromthe President
Meiko’s Approach
to CSR
Special Feature

Meiko Group Business Principles

Management
SystemIn publishing the CSR Report 2010 (English version)

Sociality Report

We will provide our customers with outstanding
value and services and makea contribution to society.
We will strive to be the very best.
We will enhance our corporate value and bringhappiness to our employees and the community.

Fiscal 2009 was a challenging year, which we began with a

In the hope of communicating our intentions to all stakeholders,determination to work our way through an unprecedented

we have been working on an English version of the Report,

global economic downturn. Demand fortunately showed signs

and I am pleased to announce that it has now been published.

of recovering, and we spent the year working on procedural

We hope that many people will read it and that you will find inreforms prompted by the lessons of the recession, and on heat

the Report that we are united in a constant commitment toreleasing circuit boards and high current circuit boards,

earn your trust by acting responsibly as a good corporate

preparing us for our Recovery Strategy starting in Fiscal 2010.

citizen.

Environmental
ReportCommunication
Tools
Financial Performance・
Corporate Profile

We published our third CSR Report 2010 (Japanese version) inlate June. However, we have plants in China and Vietnam, andcustomers worldwide.

Tsuneyoshi Kawahito
Executive Officer (CSR)

In addition to trying to make reasonable profit throughhuman rights and compliance with the law and other

Intended audience

fair competition, our aim is establish the Meiko Groupapplicable rules, in letter and in spirit, both at home andAll stakeholders with an interest in Meiko Electronics Co., Ltd.

as a useful presence to as many members of society as

overseas. By upholding these lofty ideals, our aim is to

Coveragepossible. Acting in accordance with the following nine

act as a global company contributing to the creation ofprinciples, we are therefore committed to respect fora sustainable society.

Meiko Electronics Co., Ltd. and aﬃliated companies*Please see page 39 for a list of organizations covered.

Reporting period

Corporate Charter
１．We will develop and supply products and services that are both useful to society and highly reliable

in order to guarantee customer satisfaction and earn their trust, paying full attention to quality,
safety and customer data protection.
2．We will strive to develop creative technology and pave the way for new business in order to help

This report refers to CSR activities undertaken during Fiscal 2009 (April 1, 2009 to March 31, 2010) as a rule. Sections outlining
past activities however may include details relating to before that period. Similarly, in order to provide the very latest information,
this report may also contain details relating to April 2010 onwards.

Date of publication
Previous report: August 2009This report: June 2010
*For the purposes of this report, "Meiko" refers to the Meiko Group as a whole, consisting of Meiko Electronics Co., Ltd. and its affiliated companies.

create a brighter future.

INDEX

3．We will engage in fair, free and transparent competition and fair trade and will maintain sound,

healthy relationships with political and administrative bodies.
4．We will communicate with our shareholders, customers, investors, business partners, employees

and other stakeholders and actively disclose corporate information in a fair and timely manner toensure that our corporate activities are as transparent as possible.
5．We will respect diversity and individual employees’ personalities and ensure that all working

environments are safe, motivating and comfortable.
6．We will reduce environmental impact and contribute to the creation of a sustainable society, inrecognition of the fact that we all need to do our bit to tackle environmental issues.
7．We will actively engage in social contribution activities as a good corporate citizen, including

research, education, environmental preservation and community services, and will resolutely
oppose antisocial individuals and organizations.
8．We will comply with all applicable rules, at both the local and global levels, as part of ourinternational business activities and will respect and contribute to the development of local
cultures and customs.
9．Management will enforce this charter within the company, leading by example in recognition that

it is their responsibility to put the spirit of this charter into practice, and raise awareness amongst
group companies and suppliers. Management will continually monitor internal and external
feedback, exercise effective governance and rigorously implement corporate ethics.

1■ Meiko Group Business Principles

01■ In publishing the CSR Report 201002●

■ Message from the President

03●■ Meiko’s Approach to CSR

05

●

●

■ Special Feature

Our Green Society Initiatives

07

●

●

●

Corporate Governance
Measures for Ensuring Compliance
Measures for Information Security
Measures for Risk Management●●

Initiatives for Quality Assurance
Research and Development
Improvement and Expansion of IR Activities
Creation of Comfortable Working Environment
Social Contribution
Supply Chain

17
19
20
21
23
27

■ Environmental Report■ Management System●■ Sociality Report

11

●

13

●

15

●

16

●

●

System for Environmental Management
Initiatives for Preventing Global Warming
Zero Emissions
Environmental Quality of Products
Measures for Reducing Environmental Burdens

30
31
33
34
35

■ Communication Tools●

Communication with Stakeholders

37■ Financial Performance●

Fiscal 2009 Annual Report■Corporate Profile

38
39

2

MEIKO GROUP
Corporate Social Responsibility

Message from the President

Message fromthe President
Meiko’s Approach
to CSR
Special FeatureManagement
SystemSociality Report
Environmental
ReportCommunication
Tools
Financial Performance・
Corporate Profile

As part of the global community,
Meiko is working to implement sustainableproduction methods that are in alignment
with environmentally conscience practices.

In an effort to put an end to the global economic
downturn that hit the year before last, governments theworld over have issued a range of economic stimulus
packages. One of the key elements in these packages
is infrastructure redevelopment, revolving aroundinitiatives such as harnessing renewable energy andactively investing in clean energy. Efforts to establish a
low-carbon society are gathering momentum in every
corner of the world. If we are to continue to thrive on
this planet, then coexisting with the environment has tobe our top priority. Here at Meiko, making a contribution
to this process is one of our top priorities as a company.
As we, just like everyone else, benefit from everythingthat the planet has to offer, we are fully committed totackling issues such as these. We will continue to reduce
environmental impact and minimize the environmental
risks inherent in our business activities, whilst also
promoting resource efficiency in an effort to reduce theenvironmental impact of society as a whole and help
create a sustainable society. More and more attention is
being focused on solar cells, which are expected to
become a key source of clean, renewable energy in the
future, and environmentally friendly products such as
hybrid cars, electric vehicles, LED TVs and LED
lighting. For our part, we have quickly establishedproduction lines for the likes of high-power and heatdissipation PWBs (Printed Wiring Boards), without
which such products couldn’t function, at our second
plant in Wuhan in China.
In addition to incorporating environmentally friendly
technology and expertise into the manufacturing
process for electronic PWB on the production side ofthings, we intend to actively manufacture PWB that arecapable of making a difference to the environment on
the product front as well.

3

In addition to focusing on the environment, it is crucial
that we also build trusting relationships with all of our
stakeholders, from our customers, suppliers, investors
and shareholders to our employees and members of
the local community, in order to sustain our corporate
activities within our modern day society. Each andevery one of our employees here at Meiko is madeaware of this fact and trained to effectively promote
CSR initiatives. The bare minimum that we can do toearn the public’s trust is to ensure that we comply withthe law and adhere to rules, regulations and ethicalstandards in different societies around the world. With
that in mind, we have formulated a set of Compliance
Regulations and a Compliance Manual in an effort toreinforce compliance amongst all of our employees.
The quality of our products is one of our key priorities
as a manufacturer. Once you start to have issues interms of quality, not only do you lose all of the trustthat you worked so hard to earn, but you also create
problems for customers using your products and all of
the other stakeholders with an interest in the company.
As we appreciate just how important quality is here at
Meiko, we have set out a Quality Policy and arecommitted to achieving levels of quality and reliability
that guarantee the highest possible levels of customer
satisfaction.
We will continue to contribute to the creation of asustainable society through activities such as these as
we strive to earn the public’s trust. I hope we cancontinue to rely on your support and cooperation in the
future.

President & CEO Yuichiro Naya

4

Message fromthe President

MEIKO GROUP
Corporate Social Responsibility

Meiko’s Approach
to CSR

Meiko’s Approach to CSRWith customers and operations all over the world, Meiko works in harmony with its
environment and communities. We are thankful for this harmony and in turnengage in Corporate Social Responsibility (CSR) activities.

Special FeatureManagement
SystemSociality Report
Environmental
ReportWorking and prosperingin partnershipwith our stakeholders

Communication
Tools
Financial Performance・
Corporate Profile

Respect for diversity and individual personalities
Workplaces that are safe and rewarding

Employees

Sustainable Society

Meiko s CSR Declaration

Continuing to enhance corporate value

Society

Meiko’s Business Principles
and activities align withthe global social responsibilities
and in turn support an environmentally
sustainable society.

Shareholders

Business
partners

Enhancing corporate value
Adequate disclosure

Working together withbusiness partners
Reasonable and fair trade

Sales

Manufacturing

Development

Environment

Local
communities

Customers

Providing outstanding value and services
Improving customer satisfaction

Working together with local communities
Prioritizing environmental preservation on a local and global scale

CSR promotion framework

Actively expanding and maintaining CSR activities
All of our CSR activities here at Meiko are underpinned

continuing to provide our customers with outstandingby our Business Principles and our accompanying

value and services via our core electronic PWB

Corporate Charter. We are confident that we canoperations.

contribute to the creation of a sustainable society by

We have established a CSR Committee and makecommittee members operating on a groupwide

every effort to improve and expand our CSR activities

basis. This makes it possible to organize activities

here at Meiko.

covering all areas of the group s operations in line

The CSR Committee is made up of site-specificwith our CSR Declaration and respond in good faithcommittee members representing individual plants,

to input from our stakeholders.

sales offices and other premises and area-specific

CSR Promotion Framework (CSR Committee)
CSR Committee

Board of Directors
President & CEO

Area-specificcommittee members

CSR Committee Chair

Site-specificcommittee members
Technology and Development Subcommittee

contribution initiatives.

Supply Chain Subcommittee

sustainable society through environmental and social

importance. Here at Meiko, all of our employees

Corporate Governance Subcommittee

as a member of society as we strive to establish a

to each of these stakeholders is therefore of the utmost

Social Contribution Subcommittee

activities, we will continue to fulfill our responsibilities

effectively handling the various matters of interest

Human Rights and Safety
Management Subcommittee

establishing trust in the company. Through our CSR

local community. Establishing relationships with andRisk Management Subcommittee

their duties at the local level with the aim ofpartners, investors, shareholders, employees and theCompliance Subcommittee

every aspect of our business activities and carry out

in the company, including its customers, businessInformation Security Subcommitteewith the various stakeholders who have an interest

Secretariat

Quality Assurance Subcommittee

around the world recognize that CSR is central toEnvironmental Management Subcommittee

5

A company s business revolves around interaction

News reports

Working and prospering in partnership with our stakeholders

6

Message fromthe President

MEIKO GROUP
Corporate Social Responsibility

Meiko’s Approach
to CSR

Special FeatureSpecial FeatureManagement
SystemSociality Report

Our Green Society Initiatives"Meiko recognizes that protecting the global environment and committing to clean air andwater are critical responsibilities that we have for the generations that come after us.
We use resources effectively and operate in a way that is compatible with our living environment."
Under this Basic Environmental Policy, we aspire to create an environmentally friendly society throughour business activities.
In this Special Feature, we look at the following examples of our diverse environmental activities:
I. Helping to create a green society with eco-friendly products (heat dissipation PWBs and high-power PWBs)
II. Taking steps to cut CO2 emissions to counter global warmingⅠ

Environmental
ReportHelping to create a green society
with eco-friendly products

Communication
Tools
Financial Performance・
Corporate Profile

Given rising concern over environmental issues such as global warming and pollution, we are witnessing a
rapid development and practical application of eco-friendly products and technologies, including LED lighting,photovoltaic power generation, and hybrid cars. The emergence of these new products and technologies
require the use of corresponding PWBs.
At Meiko, we aspire to contribute to the creation of a green society by manufacturing and supplying thehigh-quality PWBs that these eco-friendly products need.
Heat dissipation PWB for the backlights of LCD TVs

01

Heat dissipation PWB
for the backlights of LED lights

Heat dissipation PWB:
promoting the use of
LED lighting

The PWB efficiently dissipates the heat generated by LED elements via the heat dissipation resin and aluminum.

LEDs are promising, next-generation light source, and

PWBs

important eco-friendly products. They boast low

establishment of a mass production system, Meiko is

power consumption and great durability. In addition,

leading the way in research and development focused

they contain no harmful substances like mercury. LEDs

on aluminum heat dissipation PWBs, which combine

are likely to find even broader application in the future,highly cost-effective aluminum with high-quality heatin areas such as lighting equipment for homes, offices,dissipation resin. We began producing these PWBs inand vehicles, and backlights for LCD TVs.

Japan this year. We are also planning to establish a

Although the light from LEDs generate less heatmass production line at our Wuhan Plant in China in thecompared with conventional incandescent lamps andnear future.

fluorescent lamps, the LED elements themselves

The emergence of LED lighting requires solutions togenerate heat and are vulnerable to heat, too. In

technical issues and the establishment of a system that

addition, LED elements are a type of semiconductor

ensures a stable supply of high-quality products at low

and are mounted directly on PWBs in many cases. As aprices. At Meiko, we will help protect the global

consequence, these PWBs are required to dissipate

environment by supporting the growth of LED lighting

heat more efficiently than conventional models.

through the development and mass production of heat

Aiming to boost the heat dissipation performance ofdissipation PWBs using aluminum and other materials.

From Product Developmentwhile

keeping

priceslow

throughtheKouji Nakayama Manager 2 Product Development Dept.
nd

We aim to take on the new challenges
that will accompany the growth of LEDs.
LEDs can be made to fit diverse product designs, as they permit diverse combinations ofsmall elements. In addition, they are environmentally friendly and boast superior
durability. So we believe that LEDs will find new applications in the future. As it is used in
more fields, the level of performance required will rise, leading to the generation of newissues. We plan to overcome these issues by calling on the same accumulated
technologies and enthusiasm we bring to the development of any new technology.

78

Message fromthe President

MEIKO GROUP
Corporate Social Responsibility

Meiko’s Approach
to CSR

Special FeatureSpecial FeatureManagement
SystemSociality Report
Environmental
ReportⅠ
02
More powerful PWBs
encourage the rise ofphotovoltaic power
generation and eco-cars

Heavy copper PWBs, which are capable of passing a much higher current than conventional PWBs,
are enjoying widespread demand as society increasingly depends on electronics.

High-power PWBs (structural drawing and cross-section photo)Ⅰ
Ⅰ Cutting CO emission to counter global warming
2

01 A creative measure for saving energy used for air-conditioners at the Kanagawa Plant
The process of manufacturing PWBs involves the use

Kanagawa Plant, we installed a CFC gas condensationof a range of machines. As a consequence of this,promoter and a hybrid fan on the plant s air-conditioner

air-conditioners are in full operation to dispel theto reduce power consumption. This has enabled us toheat generated by the machines, and the cooling load

reduce power consumption and CO2 emissions by

is extremely high in summer. To improve air-conditioning

17%.

efficiency and reduce energy consumption at ourelectric vehicles. The next-generation vehicles also

gases is a pressing problem that requires a concerted

require high-power PWBs, because electronic controls

effort on the part of the international community. One

are used for many of the parts, including high-power

technology for countering the problem is photovoltaic

motors used as alternatives to gasoline engines.

power, a natural and clean energy source that

A high-power PWB needs to have a much wider areaemits only tiny quantities of CO2. The installation of

for the current path than is seen with conventional

photovoltaic power generators is consequently being

PWBs. Therefore, the copper pattern for its circuit

encouraged all over the world, and the devices areneeds to be much thicker. Meiko has pioneered

being promoted in Japan under the initiative of thethe development of heavy copper PWBs, and has

government.

successfully mass produced low-cost, high-quality,

A solar cell used for photovoltaic power generation

high-power PWBs. As with heat dissipation PWBs, we

directly converts light energy into an electric current

plan to establish a mass production line for high-power

and accumulates the current via PWB. Photovoltaic

PWBs at our second plant in Wuhan, China.

power generation requires the use of high-power

To contribute to a low-carbon society, Meiko will

02 Saving energy used for freezers and compressors at the Guangzhou Plant

PWBs that are capable of passing a higher current thancontinue to evolve and develop high-power PWBs

Because of its rapid economic development, China isused for freezers and the compressors included in theconventional PWBs used for personal computers andthat will become the components of photovoltaic

experiencing a dramatic rise in its CO2 emissions. A

infrastructure equipment, which consume much moreother devices.

power generation and eco-friendly products such as

response is urgently needed.

power than is used by manufacturing equipment. For the

In addition, the automobile industry is experiencing a

hybrid cars.

We began operating our first plant in China in Guangzhou

freezers, we introduced a system that meticulously

in 2001, followed by a second plant in the same area incontrols the number of rotations by using inverters. For

2004. We are striving to reduce CO2 emissions fromthe compressors, we adopting a system for controllingthese plants to fulfill our own responsibilities and to

the number of units to eliminate waste. This resulted incontribute to the initiatives being taken by China as aa 270-ton reduction in annual CO2 emissions.

From the Wuhan Plant

Toshihiko Kimura

Plant Manager Wuhan Plant

Aiming for "harmony" with the land of Wuhan

Financial Performance・
Corporate Profile

Meiko believes that it needs to adopt its own, voluntary initiatives to address global warming. We havebeen striving to cut CO2 emissions by combining the creative ideas of our employees.
In this Special Feature, we describe the steps we have taken at the Kanagawa Plant and the Guangzhou
Plant in China. These are examples of the initiatives we take at our plants, which are the source of the
reductions we achieve in CO2 emissions.

The issue of global warming caused by greenhouse

shift from gasoline-powered cars to hybrid cars andCommunication
Tools

Air cooled by CFC gas

Supplies cooled CFC gas
CFC gasCondensation
promoterHeated air in the plant

Heat exchanger

Compressor

Returns heated
CFC gasHot CFC gas, which was gasified after it was used to cool the air, is cooled in advance in the condensation promoter before it enters the compressor. In
this way, the gas condensation promoter improves the efficiency of CFC gas liquefaction.

nation. Above all, we took steps to reduce the energy
Before the initiative

After the initiative

The national slogan of China is "harmony." This means harmony between acompany s production activities, the natural environment, and the people in thelocal community with whom the company shares its environment. Wuhan, where
our plants are located, is a historic location with a rich natural environment
nurtured by the Chang Jiang river that has produced many prominent figures. I am
highly motivated when I think about the great significance and potential that is associated with the
production of heat dissipation PWBs and high-power PWBs for eco-friendly products, here at Wuhan.

9Introduction

Four more inverters (90kW)
were installed.

The conventional method of operating the freezing machines by using a contactor was inefficient, because workers had to switch the freezing pump on/off
manually depending on the cooling load. We therefore installed inverters and a touch panel for the freezing pump, permitting automatic operation control(by measuring the temperature of freezing water and controlling the flow volume accordingly). In addition, the operational state (efficiency) of the freezing
pump is displayed for constant monitoring.

10

Message fromthe President

MEIKO GROUP
Corporate Social Responsibility

Meiko’s Approach
to CSR

Management System

Special Feature

To ensure that operations are efficient and appropriate, Meiko has improved its
transparency and established a management framework that will earn the trust of its
stakeholders, establishing a system that allows audits and internal control to function
appropriately.

Management
SystemSociality Report

Internal control system
Our Board of Directors passes resolutions and seeks

operations in accordance with the Companies Act andto refine the following aspects of our system (Basic

Ordinance for Enforcement of the Companies Act.

Environmental
ReportCommunication
Tools
Financial Performance・
Corporate Profile

Policy on Internal Control System) for ensuring proper

Basic Policy on Internal Control System
1. A system for ensuring that the duties of our Directors and employees comply with laws and regulations
and our Articles of Incorporation
2. A system for ensuring that the duties of our Directors are executed efficiently
3. A system for storage and management of information concerning the execution of duties by our Directors
4. A system regarding rules, etc. on the management of the risk of loss
5. Improvement of the auditing environment for our Auditors
6. A system for ensuring proper operations by Meiko Electronics Co., Ltd. and its Group companies

Internal control concerning ﬁnancial reporting

Corporate GovernanceOur organization

With the full enforcement of the Financial Instruments andcontrol (including account settlement and financial

Exchange Act, it became mandatory in Fiscal 2008 forreporting processes) which would have a substantial

listed companies to evaluate their internal control overinfluence on our overall consolidated financial reporting.

financial reporting and create and submit internal control

Based on the outcome, we evaluated the effectiveness ofreports based on the outcomes of the evaluations to

our IT control and internal control, which is incorporated inensure that their financial reporting was reliable.

our business process and executed in an integrated

Under the Basic Policy on Internal Control System shownmanner (internal control concerning business processes

above, we develop policies and plans concerning theincluding account settlement, financial reporting, sales andAt the Meiko Group, the Board of Directors andBoard of Auditors. The Internal Audit Department

policy, procedures, and methods of evaluating our internal

inventory management, and purchases).

Management Council are the principal decision-making

improves and expands our internal check system andcontrol, the framework of evaluations, scope of evalua-

All issues with our internal control identified through thebodies.

ensures that corporate governance and compliancetions, schedules of evaluations, and recording and storage ofevaluation processes were rectified during the term.

Our auditors audit and check the execution of duties byfunction effectively based on the policy for our internal

evaluation outcomes. We have established a framework for

As a result of these processes, we will state that Our

each Director in accordance with the policies of ourcontrol system.

evaluations to be led by management. In this process,internal control over financial reporting has been effective

we followed the Practice Standards for Managementin our internal control report for Fiscal 2009, and will

Assessment and Audit concerning Internal Control overreceive appropriate opinions from our auditors.

Financial Reporting set by the Financial Services Agency.

We will submit our internal control report and financial

Based on these policies and plans, we again evaluated inreports for Fiscal 2009 to the Kanto Finance Bureau

Fiscal 2009 the effectiveness of our Companywide internalfollowing a resolution by the Board of Directors.

Corporate Governance Framework at Meiko
Appointment/Dismissal
Appointment/Dismissal

Auditors
Board ofAuditors

Shareholder Meeting
Board of Directors

Auditing

Internal Control Committee

Appointment/Dismissal/Supervision

Compliance Committee
President & CEO

Risk Management Committee

Management
Council

CSR Committee

Internal Control of the Meiko Group in Fiscal 2009
Board of Directors

Board of Auditors- Passing resolutions on internal control policies- Passing resolutions on the improvement/promotion of internal
control- Audits and validation of the effectiveness of internal control

President & CEO
Administration GroupPWB Sales GroupPWB Manufacturing GroupEMS Dept. and others

Subsidiaries

Internal
Audit Internal
auditing
Department

Board of Directors: Met 22 times during Fiscal 2009
(Note) Meiko is a company with a Board of Auditors, and therefore does not appoint Outside Directors.
Board of Auditors: Met 12 times during Fiscal 2009
(Note) Two of the three auditors are Outside Auditors. They attended all meetings of the Board of Directors.
Our Outside Auditors Kunihiro Sugawara and Yutaka Gotoh do not have any personal, capital, or business relationships with
Meiko or otherwise have any interest in the Company.

11- Operations and directions concerning internal control- Confirmation of the effectiveness and coordination of internal
control

Meiko Group’s Internal Control Committee in Fiscal 2009
Assisted the President & CEO and Board of Directors in internal control- Directed and controlled the management of the entire Group for internal control
based on directions from the President & CEO and the Board of Directors

Examples: Discussed and improved plans for internal control, confirmed operations, and examined and approved guidelines (manuals, etc.)
for operation and review, among other activities

Internal Control Secretariat- Assistance in improving internal control,
preparations for evaluations,and creation of reports

Group companies’ departments responsible for implementing internal control

12

Message fromthe President

MEIKO GROUP
Corporate Social Responsibility

Meiko’s Approach
to CSR

Management System

Special FeatureManagement
SystemSociality ReportCompliance Manual

Measures for Ensuring Compliance
Meiko positions compliance as a critical aspect ofCode of Conduct. We also explain the framework

management. Each of our employees complies withof our activities in our Compliance Regulations,laws and ordinances, social ethics, and morals inwhile the Compliance Manual shows more specifictheir work. We have codified our standards incompliance rules to be observed by the Company

the Corporate Charter of the Meiko Group and theand its employees.

The Compliance Manual provides specific explanations

structure, and areas requiring compliance by executivesof Meiko s approach to compliance, the complianceand employees. These are listed below.

Environmental
ReportCommunication
Tools
Financial Performance・
Corporate Profile

Compliance Manual (Areas Requiring Compliance)
1. Compliance for our customers(1) Confidentiality obligation (2) Sincere attitudes (3) Product liability(4) Eliminating inappropriate relationships with customers (5) Prohibiting transactions based on personal considerations

2. Compliance for our suppliers(1) Fair selection of business partners (2) Prohibition of requests for kickbacks(3) Prohibition of excessive gifts and entertainment (4) Prohibition of the reception of other conveniences and facilities

Past and Future Initiatives

3. Compliance for our investors(1) Disclosure of appropriate corporate information (2) Correct recording (3) Comprehensive internal auditing

The initiatives we have taken to ensure compliance

Committee.

include setting up a Compliance Committee and

In Fiscal 2009, we placed the Compliance Manualdeveloping Compliance Regulations and a Compli-

and Compliance Handbook, which summarizes familiarance Manual. We also introduced a whistleblowing

examples of compliance matters, on our in-housesystem and set up the Help Line as a direct point of

website to raise awareness among our executives andcontact with employees. Matters reported under this

employees.

system are discussed by the Compliance Committee

In the future, we will use the Handbook to provide

as necessary and responses are considered by thegroup education to all of our employees.

4. Compliance for our community(1) Compliance with related laws and ordinances, etc. (2) Compliance with the Antimonopoly Act(3) Compliance with the Act against Delay in Payment of Subcontract Proceeds, Etc. to Subcontractors(4) Compliance with laws and ordinances on insider trading (5) Respect for intellectual property rights (6) Confrontation with antisocial forces

5. Compliance for our employees(1) Respect for human rights (2) Prohibition of sexual harassment (3) Prohibition of power harassment(4) Protection of personal information (5) Compliance with labor laws

6. Compliance for the profits and assets of the Company(1) Compliance with internal rules (2) Prohibition of conflicts of interest (3) Respect for the Company’s assets(4) Fair reporting of expenses

Compliance Regulations and Organizations
Meiko has established its own framework for compliance activities. The figure below shows the major elementsof the Compliance Regulations.

Major components of the Compliance Regulations● Organization for promoting compliance● Whistleblowing system (Help Line)● Responsibilities of executives and employees● Compliance training

Introduction of the Help LineWe have introduced a whistleblowing system (Helpand conduct fact-finding with particular care so asLine), which permits our employees to report violations

to protect whistleblowers from any disadvantages.

or possible violations of laws, ordinances, or other

Whistleblowers can choose to remain anonymous.

regulations without hesitations. We protect information

Provision of compliance education
Organizational Chart on Compliance
Board of Directors
Reports

Instructions

Auditing

Board of Auditors

At Meiko, we provide compliance education because

insider trading to all employees at the time of quarterly

we believe that the idea of compliance will be effective

settlement. In addition, we placed the Complianceonly when it is adopted by all executives and employees

Handbook on our in-house website in Fiscal 2009.

across the entire organization. We issue warnings on

Reports

Instructions

Compliance Handbook made accessible on our in-house website
Compliance Committee

Corporate
lawyer Cooperation

Administrative Section

We have been providing compliance education to our employees, and thecontents of the education programs are summarized in the ComplianceHandbook, which we made accessible on our internal website in March 2010.
The Handbook contains 50 specific case examples that employees are mostReports

Instructions

likely to face. It gives easy-to-understand case studies that clarify problems

HelpLine Whistleblowing

Departments and employees
at Headquarters and affiliatesfrom a compliance perspective and highlight the points employees need tonote.
The in-house website is accessible to all employees. The ComplianceHandbook has been uploaded to the site to further strengthen Meiko s compliance.

13

14

Message fromthe President

MEIKO GROUP
Corporate Social Responsibility

Meiko’s Approach
to CSR

Management System

Special FeatureManagement
SystemSociality Report

Measures for Information Security

Measures for Risk Management

Environmental
ReportCommunication
Tools

Our business is the manufacture and sales of electronic

As a company-wide initiative on information security,

Meiko has created a set of Crisis Management Regula-

PWBs. To continue our business, we believe that it is

we have obtained ISO27001 certification in Informa-tions, which assume a variety of risks associated withessential that our customers have faith that ourtion Security Management System (ISMS), with which

management, information, plants, and facilities.

information security is sufficiently reliable that we will

we will strengthen information management systems

If a major crisis should take place, we will set up an

never leak important information.

with our customers.

Emergency Headquarters led by the President & CEO,President & CEO
Emergency

crisis promptly and prevent any recurrence. In addition,
as a measure to prevent information-related crises, we

To protect customer information and maintain stable corporate activities, security measures toprotect our information assets from threats are vital.
To this end, Meiko Electronics Co., Ltd. has instituted the following policy on information security.

have set up a server at the Yamagata Plant as well as

1. We protect customer information and in doing so build trust with our customers in accordance with one of ourBusiness Principles, namely, "We will provide our customers with outstanding value and services and make acontribution to society."
2. We maintain and improve our corporate ethics and fulfill our corporate social responsibility by adopting
information security measures and complying with relevant laws and ordinances.
3. We secure the resources needed to sustain our corporate activities.
4. To facilitate information security action, we ensure and continuously improve our Information Security
Management System (ISMS).

We have also created a Business Continuity Plan (BCP)at Headquarters and we constantly back up our data
to the additional server.

Normal state

Emergency
Headquarters

Crisis Management
Committee

Chief: President & CEO
Deputy chief: Senior Managing
Executive Officer
Directors
Executive Officers
Manager of the related plant
Manager of the related
department

Chairperson:
Director in charge of generalaffairs
Committee members:
Representatives of departments,
etc.

and will take comprehensive measures to deal with theInformation Security Policy

Financial Performance・
Corporate Profile

Crisis Management Organization

for the four plants in Japan, to ensure a quick recovery
and continuous supply in the event of an emergency

Departments and units

such as a major earthquake.

■ Protection of personal information
To comply with laws concerning the protection of personal information and to handle personal information appropriately, Meiko has adopted the"Personal Information Protection Regulations." Based on these regulations, we handle information with particular care.

■ Protecting customer information
Protecting the confidential information of our customers is the most fundamental requirement. We take comprehensive measures to protect customer
information in accordance with Section 1 of our Information Security Policy.
*The following is an excerpt from the "Confidentiality Obligations" section of the Compliance Manual.

We will never disclose to third parties any confidential information obtained through transactions
with our customers, except when required to do so by laws or ordinances or when our customers
have approved the disclosure for compelling business reasons.

Excerpt from BCP■ Type of crises and risks

Risk factors
1. Management(1) Downturn in profitability (2) Competitive advantage (3) Market disruption (4) Decline/fluctuation in stock price (5) Shareholder lawsuit(6) Overstepping of authority (7) Unstable labor-management relations (8) Labor shortages (9) Violations of laws or ordinances

2. Information(1) Leakage of important or confidential information (2) False information (3) Data falsification (4) Loss of information concerning customer, supplier, etc, (5) Internet harassment

3. Plants and facilities (1) Damage to major plants and facilities (2) Damage to the supply route of major raw materials (3) Closure of major plants or facilities (4) Disruption to major plants

Past information security initiatives
At Meiko, we receive important information from customers. We
therefore recognize the importance of information security, andthe Information System Division of our Headquarters obtained
ISO27001 certification in 2006. Since then, we have been taking

4. Human resources(1) Estrangement of core management personnel or staff (2) Increase in absence without permission (3) Illegal acts (4) Increases in accidents(5) Violence and blackmail in the workplace (6) Discrimination and sexual harassment

5. Trust(1) Slander (2) Gossip (3) Falsification of corporate logo (4) Problems related to intellectual property right (5) Collapse of credit (6) Pollution/environmental problems

6. Antisocial acts

(1) Product tampering (2) Kidnapping (3) Threats to business or intimidation (4) Terrorism (5) Connections with antisocial forces (6) Wars

7. Natural disasters(1) Earthquakes (2) Fires (3) Floods (4) Typhoons (5) Lightning strikes, blackouts

8. Organization(1) Organizational culture (2) Insufficient systems for internal checks (3) Deviations from standards and regulations (4) Dishonest acts (5) Overseas risks

steps so that our entire company can obtain the certification.

■ Protection of intellectual property rights
Meiko recognizes the importance of protecting intellectual property rights and takes steps to avoid infringing, or allowing others to infringe, on such rights.
January 2006: The Information System Division obtained BS7799-2 certification.
January 2007: Transfer to ISO27001 certification was completed.
(At the same time, we expanded the scope to eight departments and successfully obtained certification.)
October 2009: Four applicable departments at Wuhan Plant in China obtained ISO27001 certification.
March 2010: We obtained ISO27001 certification after expanding the applicable range to 20 departments at the Headquarters and four sales branches.

*The following is an excerpt from the section titled "Protection of Intellectual Property Rights" in the Compliance Manual.

At Meiko Group, we respect the intellectual property rights of others, including patent rights andcopyrights. We develop a new product after confirming that it will not infringe on any intellectual
property rights held by others.
■ Antisocial forces
Meiko is committed to building a fair society and maintains a resolute stance against dealing with antisocial forces.

Future information security initiatives

15

We will continue to strive to expand the scope of ourmanufacturing electronic PWBs and sales branches incertification. We are introducing ISMS at all plants

Japan and at our overseas manufacturing bases.

*The following is an excerpt from the section on "Antisocial Forces" in the Compliance Manual.

Meiko Group resolutely rejects any unfair demands for transactions or money from antisocial
forces and will never enter into any kind of relationship with such forces. We will never provide
corporate racketeers with economic benefits concerning the exercise of shareholder’s rights.

16

Message fromthe President

MEIKO GROUP
Corporate Social Responsibility

Meiko’s Approach
to CSR

Sociality Report

Special Feature

At Meiko, we manufacture and sell PWBs, devices that are essential for industrial development,
by interacting with diverse people in various countries, regions, and communities.
We recognize that we are a social entity, and we fulfill our responsibilities accordingly. At thesame time, we give consideration to our stakeholders as we engage in our business activities.

Management
SystemSociality Report

Acquisition of ISO9001 and ISO/TS16949 certiﬁcations

Environmental
ReportAt Meiko, we have obtained ISO9001 and ISO/TS16949 certifications, which

Communication
Tools

are global standards, and have been working on continuous improvements.

Financial Performance・
Corporate Profile

The ISO9001 and ISO/TS16949 certifications we have obtained
ISO9001

May 13, 1997 Meiko Electronics Co., Ltd. obtained certification for its PWBs.
May 1, 2002

Guangzhou Plant in China obtained certification.

Jan. 27, 2003 ISO9001:2000 became the unified standard in Japan.
Jan. 27, 2003 Extended certification obtained by MD SYSTEMS Co., Ltd. (Design of PWBs)

ISO9001 (Japan)

Jan. 27, 2006 Extended certification obtained by the Miyagi Plant
Nov. 29, 2006 Wuhan Plant in China obtained certification
Feb. 20, 2008 Extended certification obtained by Metal Mask Dept.
Jan. 27, 2010 Integrated certification obtained by MEIKO FINE Co., Ltd. (Mounting of PWBs)(Obtained individually on February 28, 1998)
ISO/
TS16949

Initiatives for Quality Assurance
At Meiko, we have defined a Quality Policy aimed at

the Quality Policy and improve the reliability of ourachieving one of our Business Principles: We willproducts to guarantee the highest possible levels ofprovide our customers with outstanding value andcustomer satisfaction and contribute to society.

services and make a contribution to society. We apply

Quality Policy
Ensuring quality that meets
customer expectations andinstills confidence
Quality demanded by customers
Expectations andconfidence

Ensuring quality thatmeets customer needs

Quality assurance by the Meiko Group

Meiko Quality Manual
Meiko Technology and Control Standard
Meiko Operation Standard and Specifications
Operating instructions, drawings,
and instructions for manufacturing

Quality record

Improvement ofcustomer satisfaction

Apr. 19, 2004 Guangzhou Plant in China obtained certification.

*The plants in Japan obtained certification from Japan Electrical Safety & Environment
Technology Laboratories (JET). The plants in China obtained certification from TÜV Rheinland.

TS16949 (Guangzhou Plant, China)

Examples of our activities

Design Review (DR) meeting using a video conference
call system
Based on design data, specifications, and drawings from customers, we review the design of the product (DR meeting)by linking our plant, sales office, and Headquarters via a video conference call system. The aim of the meeting is toprevent problems with mass production through initial production control.
DR meeting (video conference call)

Expansion of TPM activities into plants in China(production reform)
In furthering production reform for Fiscal 2010, we will expand our TPM activities into our plants in China. Starting with the 5S’s and self-maintenance, we will
reduce defects by eliminating foreign substances as the root cause of defects and improving production conditions to ensure superior quality.

Use of four-terminal electric checkers
It is difficult to ensure the connection reliability of HDI PWBs with the two-terminal electric checkers we used previously.
We now utilize a method that detects changes in resistance to conduction to supply highly-reliable products.

Our approach to quality assurance and organizational eﬀorts to ensure high quality
In the Quality Policy, we have stipulated that we need totechnologies and operations. In terms of quality assurance,

continuously improve the quality of our operations as

we assure the quality of all products within the plant

well as our products by ensuring that the management

where they are manufactured. We intend to assure quality

cycle operates in every process of our operations. The

as promptly as possible by strengthening our cooperation

management cycle targets continuous innovations inwith our plants and sales offices in Japan and overseas.

Measures for eliminating malfunctions and reducing defects
At Meiko, we have specified malfunctions that

Starting from Fiscal 2010, we will undertake production

affect the performance of our customers products as

and quality process reforms under the management

crisis management defects, and have been striving topolicy of No serious defect in shipped products. We

eliminate such defects at each of our plants.

will also carry out companywide activities to reduce

In Fiscal 2008 and 2009, we implemented projects

defects under a three-year plan we have formulated.

to reduce the defect rate as part of the Eco Project.

17

Four-terminal electric checker

Confirmation of workers’ skills with dedicated cards showing
individual workers’ familiarity with their work
At our plants in China, we clarify the details of the work to be undertaken by each worker (specific tasks, measures for
ensuring safety, and how to handle abnormalities). In addition, we regularly check whether individual workers arefamiliar with the work assigned to them in order to maintain and improve their skills.

A card showing a worker’s familiarity with his work

Training in Japan provided for future executives ofour plants in China
We regularly provide training in Japan for future executives of our plants in China. After returning from Japan, the trainees
discuss the differences between the plants in Japan and China and identify problems in the way they work and the way
they think so as to improve their operations.
Discussion held by trainees after returning from Japan18

Message fromthe President

MEIKO GROUP
Corporate Social Responsibility

Meiko’s Approach
to CSR

Sociality Report

Special FeatureManagement
SystemSociality Report

Research and Development

Improvement and Expansion of IR Activities

Environmental
ReportCommunication
Tools

The evolution of electronics means the evolution

technologies, including the any-layer construction,

One of the pledges made in our Code of Conduct is:value.

of PWBs. By making use of our laser processing

flexible PWB, flex-rigid PWB, package module PWB,

We will ensure that our corporate activities andmaximize our corporate value by engaging in sound,technologies and B2it technology* in our PWB business,

and PWB-incorporating components.

management practices are sound and transparent,

fair corporate activities while complying with laws

and we will continue to be a trustworthy company toand ordinances.

we at Meiko have created a number of state-of-the-art* B2it: Buried Bump Interconnection Technology

Based on this pledge, we are striving to

Financial Performance・
Corporate Profile

our shareholders and investors to generate corporate

Activities in Fiscal 2009
2nd Product Development Dept., which is responsible

were conducted by the following: the Meiko Researchfor developing products and manufacturing processes

and Development Center, which is responsible for thefor aluminum heat dissipation PWBs and heavy

In accordance with the timely disclosure regulations,and investors. We also disclose other key information

development of elements for state-of-the-art technologies;

copper PWBs; and engineers from individual plants

we adequately disclose key information considered to

via prompt, adequate, and fair means to ensure thethe 1st Product Development Dept., which is responsible

who undertake mass production using the developed

influence the investment decisions of our shareholders

transparency of our management practices.

for developing products and manufacturing processes

technologies.

two or three years in advance, including any-layer HDIs

The following sections introduce our research and(High Deusity Interconnects) and embedded PWBs

development efforts with regard to advanced PWBs.

1 Development of Embedded PWBs

Embedded PWBs components have chip capacitors or chip resisters embedded in them. We developed
these PWBs in response to the increasing density and higher performance of PWBs. The use of these
PWBs has contributed to wider areas for mounting PWBs, and consequently, smaller equipment
dimensions. It has also enabled the shortest possible wiring distance between the surface-mount IC andembedded PWBs passive components, thereby improving the electric properties. We commenced themass production of these PWBs at our plants in Japan in October 2009.
2008: Development of element technologies completed
March 2009: Press release
October 2009: Mass production commenced at plants in Japan
As of June 2010: Development efforts are underway toward even thinner PWBs with higher density

Photo showing cross-section of an embedded PWB

2 Development of any-layer PWBs

Fair, prompt disclosure of
information on our website
We ensure that our financial statements and other data
are published on our website at the same time as they
are disclosed, so that the information is disclosed in a fair,
prompt manner. For institutional investors and securities
analysts, we hold not only biannual results briefings but
also individual explanatory meetings to communicate
better with them. We provide the materials used for the
results briefings to general investors on our website sothey can use them to improve their understanding of
Meiko.

Results briefings

Publication of the MEIKO REPORT

Any-layer PWBs permit unlimited connections between layers. They combine laser technologies andfilled plating technology, which permit ultra-fine processing, B2it technology, which permits thinnerplates, and other technologies. The use of this PWB enables 0.4mm-pitch CSP wiring and slimmer
equipment dimensions. We mass-produce the "10-layer M-VIAIII" and "8-layer/10-layer M-VIAB PWB"
used for mobile phones and smartphones.
10-layer M-VIAIII PWB

10-layer M-VIAB PWB(Cross-section photos)

3 Development of aluminum heat dissipation PWBs
PWBs used for LED lights are required to dissipate heat, because the LED
elements themselves generate heat and lose brightness whenoverheated. In response, we developed an aluminum heat dissipation
PWB, which disipate the heat of LED elements. We began producing thisPWB at the Yamagata Plant in September 2009 and at the Guangzhou
Plant and Wuhan Plant in China in June 2010. (See page 8 for details.)

We publish and send the MEIKO REPORT to ourshareholders at the halfway point and at the end ofeach fiscal year to improve their understanding of the
Meiko Group as a whole. The report provides business
reporting, topics, an overview of our performance andfinancial statements, and corporate data for the relevant
period in an easy-to-understand format. The MEIKOREPORT for Fiscal 2009 included dividend information
and an interview article in which our president provided
a message and briefings on Meiko’s business.

Heat source: LED elements

Heat dissipation

19

Timely and adequate disclosure of information

In Fiscal 2009, our research and development activities

Aluminum

Heat dissipation resin

Plans and objectives ofactivities for Fiscal 2010

1) Development of thin embedded PWBs
2) Development of PWBs for 0.3mm-pitch CSP Wiring
3) Carrying out new development projects

Level we aim to reach
within three to five years

1) Mass production of products under development (thin, embedded HDIs,
PWBs for 0.3mm-pitch CSP Wiring, etc.) (within one to two years)
2) Furthering the development projects of the Research and Development Center3) Studying, selecting, and undertaking new development projects in line with the road map

Discussion sessions with ourshareholders
We hold a "Discussion Session with Shareholders" after
the shareholder meeting every year. In this session, ourpresident reports on our business activities during thepast year and explains our business strategies for the
future. This is followed by informal discussions andexchanges of opinions between our executives andshareholders.
Discussion session with shareholders

20

Message fromthe President

MEIKO GROUP
Corporate Social Responsibility

Meiko’s Approach
to CSR

Sociality Report

Special FeatureManagement
System

Educational and training programs for Fiscal 2010

Creation of a Comfortable Working Environment

and exchange employees between Meiko Groupdiscrimination on the basis of race, creed, religion,

companies, both in Japan and overseas, to develop
global human resources and stimulate the further

and improve the environment in all workplaces, and tointerviews with workers, offering counseling provided by mental

attributes, so that diverse employees are able toencourage the good health of all employees.

healthcare professionals, and implementing a variety of otherWe have established a PDCA cycle, in which problems foundmeasures through cooperation between employers andduring safety and health patrols by Safety and Healthworkers.

Financial Performance・
Corporate Profile

age,

gender,disability,

and

other

revitalization of our human resources.

■ Employment of persons with disabilities
In Fiscal 1991, Meiko Electronics Co., Ltd. (excluding its group companies) first achieved the legally required number of employees with disabilities in accordance with the Act on
Encouraging the Employment of Persons with Disabilities. Since then, we met the legal requirement for 19 consecutive years up until Fiscal 2009. In April 2010, however, we were notable to meet the legal requirement, partly because the overall number of employees increased due to the employment of new graduates. We will strive to meet it again in Fiscal 2011.
(Note) Legally required number of employees with disabilities = Number of permanent employees×Legal rate of employment (rounded down to the nearest whole number)

results of the measures are validated. These efforts are

Changes in the number of our employees with disabilities andthe number required by law (Fiscal 2004 – 2010)

aimed at creating better working environments, not to

Fiscal year
No. ofemployees
No. of employeeswith disabilities
Legal
requirement

mention preventing work accidents.
To ensure that problems are found efficiently, we havearranged for our workplaces to be patrolled by industrial
physicians, industrial health consultants, and other experts,

2004

2005

2006

2007

2008

(Persons) 18

2009

Safety and health patrol by Safety and Health Committee members

measures to prevent work accidents and improve the level ofour safety and health management.
We also strive to raise each employee s awareness of safety
and health. Our measures to this end include accident-freerecord activities, training in predicting dangers, andcontinued safety and health training for each job class.

14
12

12

538

565

578

663

877

869

894

14

11

11

12

16

15

15

10
8
6

6

4

9

10

10

11

15

15

16

2
0

2004

2005

2006

2007

2008

2009

2010

0

Numberof employees
Legalrequirement

Employment and exchanges of global human resources
Currently, approximately 40 employees from overseas countries,

year. In addition, up until Fiscal 2009, a total of 114 persons had

including China, are working at Meiko s business establishmentscompleted the language and skill training in Japan intended forin Japan, while approximately 80 Japanese employees are

future executives of our overseas subsidiaries, which has beenworking overseas. These numbers have been increasing every

offered every year since Fiscal 2003.

From a Global Employee

In recent years, damage to health caused by long working

16

2010

(Note) The numbers of employees and employees with disabilities shown above are those of Meiko Electronics Co., Ltd. only as of April 1 each year.

and Safety and Health Committee members undertake
risk assessments, based upon which we implement

Environmental
ReportCorrespondence course program

exercise their abilities. We also transfer personnel

recruit, evaluate, and treat our employees without
nationality,

patrols of the plants. What is more, we estimate risks throughOn-the-job training

At Meiko, we respect human rights and strive toworkers, having those in charge of occupational health conduct

corrective measures are introduced to workplaces, and theSociality Report

Respect for diversity

The objectives of these initiatives are to eliminate dangers

Committee members are deliberated by the Committee,

Selfdevelopment

Communication
Tools

TOEIC registration/examination program

Employee safety and health initiatives

Japanese language training for overseas employees

respects their diversity, and allows them to develop.

Foreign language training (English, Chinese, and Vietnamese)

safe, secure, and hygienic for all our employees,

dispatched overseas, while dozens of workers from

Program to support qualification acquisition

creation of a comfortable working environment that is

In addition, numerous Japanese employees are

Specialized training

plants and offices.

Follow-up training
New recruit training

Safety and health training

company is its human resources, we focus on the

Program to support qualification acquisition

A large number of local people work at these overseas

Generalemployee

Plant manager and supervisor training

In line with the concept that the greatest asset of a

Assistant manager training
Mid-career employee training

Program to support qualification acquisitionin addition to Asia.

Supervisory employee

Sales skill training

the business activities of Meiko.

Safety and health training

and from diverse cultural backgrounds are involved in

opened sales offices in Europe and the United States

Training for new managerial
workers

Program to support qualification acquisition

This means that employees of different nationalities

constructing a plant in Vietnam as well. We have also

Department head training
FMEA and quality/statistics training

in Guangzhou and Wuhan in China, and we are now

OJT

GlobalClerical work

Executive training
Follow-up training for
managerial workers

Managerial
employee

Departmental training
Sales
Manufacturing

Engineering

Training for mid-career employees

and plants in Japan.

Executive
Department head

Overseas training

overseas, including China, work at our Headquarters

globalization in recent years. We already have plants

Job-class-specific training

Employee evaluation training

At Meiko, we have accelerated the progress of our

Rank

Division Chief International Sales Division
Wang Yi Deputy
International Sales Dept. Guangzhou Plant

hours and mental health problems have been social issues.
At Meiko, we encourage the good health of all employees by
providing training on mental health problems to managerial

To make Meiko the No. 1 company in the worldFirefighting training

I completed a master s degree program at a university in Japan in 2005 and joined Meiko as a new
graduate. I am now assigned to the Guangzhou Plant as a member of the International Sales Department,in charge of customers outside Japan. The level of customer demand regarding the products is quite high,Educational programsthem to obtain technical qualifications. We are also

customer requests and select a Meiko Group plant for the mass production of the corresponding product.

recruits, mid-career employees, and executives. We also

developing employees who can work globally by improving

I then serve as the liaison between the customer and the plant from the test production phase until thehold departmental training specific to functions and job

and expanding overseas

commencement of mass production of the new product. I continue to follow up on the process after mass production begins.

categories. These training programs are aimed attraining programs andIn addition to the four plants in Japan, Meiko has production bases in Guangzhou and Wuhan in China, as well as one in Vietnam. Our

extracting the potential ability of individual employees,

the training of overseas

customer base is not limited to Japan, but has expanded into North America, Europe, and Southeast Asia.

strengthening their ability to work in teams, and improving

workers in Japan.

As our production and sales are globalized, Meiko has been recruiting a large number of non-Japanese employees like me.

their overall abilities that are universal to all organizations.

Highly-motivated employees are assigned to important jobs, regardless of their nationality and age.

In addition, we offer qualification programs and provide

At Meiko, our objective is to be the world leader in the PWB field. I would like to contribute to achieving this ambitious goal as much as

financial assistance with correspondence courses to help
our employees with their self-development and encourage

21

but I am striving to provide the optimum value and service in my sales activities. Specifically, I check

At Meiko, we provide job-class-specific training to newTraining session for new recruits(manufacturing simulation training)

possible through my daily sales activities.

22

Message fromthe President

MEIKO GROUP
Corporate Social Responsibility

Meiko’s Approach
to CSR

Sociality Report

Special FeatureManagement
SystemAction 1

Sociality Report

Donation of LED light bulbs to facilities in Ayase City,
Kanagawa Prefecture

Social Contribution
At Meiko, we encourage social contributions by ourto ensure harmony between all our business bases,

Headquarters and group companies to build close

including the Headquarters and local communities,

As part of our social contributions, we donated 225 LED light bulbs to the Citizens

relationships with local communities. We will continue

and undertake activities for mutual development.

Cultural Center of Ayase City. The aim of the donation is to help Ayase City with its

Environmental
ReportCommunication
Tools
Financial Performance・
Corporate Profile

activities for cutting CO2 emissions. At the certificate of appreciation presentation
ceremony held in May 2010, the Mayor of Ayase City thanked us, saying We will
make full use of these bulbs to reduce our energy consumption and cut CO2

Yamagata

emissions in Ayase City, and to make savings on the maintenance and management

Miyagi●Acceptance of local junior high school students to help

●Assistance with fireworks display in the Ishimaki Kawabiraki Festival●Provision of company tour to high school students●Internship program for local high school students

Headquarters and Kanagawa

them learn through work experience

Fukushima●Assistance with Hironomachi Summer Festival 2009
●Environment beautification campaign in the industrial park

costs of the Citizens Cultural Center.

●Assistance with the Ayase Commerce and Industry Fair organized by the Ayase City

Commerce and Industry Association●Assistance with the Ayase Iki Iki Matsuri Festival organized by the Youth Group of

Ayase City Commerce and Industry Association●Assistance with the Spring Tournament (Meiko Cup) of the Ayase City Children’s

Baseball Federation organized by the Ayase City Children’s Baseball Federation●Assistance with Abilympics Kanagawa 2009 organized by the Commerce, Industry,and Labor Bureau of Kanagawa Prefecture

Certificate of appreciation presentation ceremony

The Citizens’ Cultural Center of Ayase City

Action 2

Plant Tour for elementary school children
Wuhan

On November 25, 2009, we organized a plant tour for approximately 50 third-grade●Social event with a local university

students from Ayase City Kitanodai Elementary School, a local elementary school in
the area where our Headquarters and Kanagawa Plant are located. The children wereable to handle real PWBs, and received explanations about their functions and use.
They later observed the manufacturing processes at the plant. The children s

Guangzhou

comments included, We gained a good understanding of the fact that these PWBs

●Donation to Qinghai Yushu quake victims●Participation in blood donation activities

are used in electrical appliances that we are familiar with.

Activities in local communities
At Meiko, we deepen exchanges with communities

in the various areas. We will continue to fulfill ourwhere our business bases are located by actively

responsibility

participating in environmental beautification activities

encouraging social contribution activities in each local

and other events organized by the local governments

community.

as

a

good

corporate

citizenby

Explanation about PWBs being given to the children

23

The children listening to the explanation provided by one of our employees

24Message fromthe President

MEIKO GROUP
Corporate Social Responsibility

Meiko’s Approach
to CSR

Sociality Report

Special FeatureManagement
SystemAction 3

Action 5

Sociality Report
Environmental
ReportDonation to Qinghai Yushu quake victims

Planting activities

Early in the morning of April 14, 2010, two large earthquakes of magnitude 7.1 hit Yushu,

We assisted with the planting activities organized by Ayase City, Kanagawa Prefecture, where our Headquarters is

Qinghai in China. The earthquakes killed around 2,300 people and injured more thanlocated. In addition, our employees from the Headquarters and Kanagawa Plant planted flowers in the green belt on the

10,000. The quakes also caused the collapse of 90% of the local houses made of earth

walkway in front of our main gate as part of our own activities for beautifying the local area. We planted salvias, begonias,

and wood, resulting in a significant impact on the local people. Immediately after theand marigolds in the spring and pansies, violas, and tulips in the autumn. The pedestrians enjoyed the beautiful flowers

disaster, people from all over the country gave donations and carried out various relief

as they passed down the walkway. We will continue to plant flowers twice every year to help beautify the local area.

Communication
Tools
Financial Performance・
Corporate Profile

activities. At Meiko s Guangzhou Plant, we called for the assistance of our employees,
collected a total of 57,720 yuan, and donated the money to the quake victims.

Flower planting activity in the autumn

Flower planting activity in the spring

Action 6

Activities to beautify the local areas
Area hit by the Qinghai Yushu earthquake

Each Meiko plant undertakes activities to beautify the local area and participates in the environment beautification activities

Action 4organized by the local government.
We clean up the area surrounding the Headquarters and Kanagawa Plant every year. In fiscal 2009, 60 workers participatedParticipation in blood donation activities
Seventy employees from our Guangzhou Plant participated in the Fiscal 2009 Blood

voluntarily in the activities and picked up garbage in a nearby park and the area around our premises.
In addition, our Fukushima Plant employees cleaned up the area from the entrance of the industrial park to around the plant.
We will continue to protect local environments through our cleanup activities.

Donation Activity organized by the Nansha District of Guangzhou City in China. The
Guangzhou Plant has been proactive with regard to these activities, and was selected
as the Fiscal 2008 Guangzhou City Blood Donation Activity Advanced Unit.

Meiko employees cleaning up a nearby park
(Kanagawa Plant)

Participating in a river cleanup activity organized by
the local community association (Kanagawa Plant)

Meiko employees cleaning up the entrance
to the industrial park (Fukushima Plant)of Ogami Community
From the Local Community Mr. Masanobu Mikami President
Association of Ayase City

Meiko Electronics was established in Ayase, and its Headquarters are located in Ogami. The
company always assists with a variety of activities organized by our Ogami Community
Association. I hereby express my sincere gratitude to Meiko.
In the Community Association, we have been supporting local activities under the slogan,
Let s make Ogami a town where you want to live forever. We are strongly supported by theactivities of Meiko, which has encouraged community-based social contribution activities by
displaying the slogan, Working together with local communities.

Meiko employees donating blood

I really hope that Meiko will develop further as a community-based company loved by the
local communities, and that it will become an even more reliable and trustworthy company.

25

26

Message fromthe President

MEIKO GROUP
Corporate Social Responsibility

Meiko’s Approach
to CSR

Sociality Report

Special FeatureManagement
SystemSociality Report

Measures concerning purchase and procurement

Supply Chain

Environmental
Report■ Internal control and compliance

At Meiko, we have formulated a Basic Procurement Policy

the most important aspect of our procurement activities is

to serve as the guidelines for ensuring that our businessto establish win-win relationships and relationships ofpartners understand our CSR Policy, Environmental Policy,

mutual trust with our business partners. We ensureand so on. In accordance with this Policy, we strengthen

cooperation between the production and sales bases inour measures concerning environmental protection andJapan and overseas, and select business partners throughresponse to environmental issues, and further our CSR

a comprehensive assessment of quality, delivery punctuality,

activities by cooperating with other companies.

price, and management, under the basic principles ofCurrently, a company is required to have, as its basic(1) understanding our Basic Procurement Policy,

framework, a consistent supply chain covering the entire(2) compliance with laws, ordinances, and social norms,

process from material procurement from businessand (3) environmental protection. In this way, we arepartners through to production, distribution, and sales ofstrongly emphasizing CSR practices within our supply

products. In line with this trend, we at Meiko believe thatchain.

Communication
Tools

At Meiko, we undertake smooth operations with our business partners by complying with the following rules on purchasing and procurement. We carryout appropriate transactions with our business partners by undertaking internal training concerning adherence to laws and ordinances, including the Act
against Delays in the Payment of Subcontract Proceeds to Subcontractors, and confirmation of compliance with other regulations.

Financial Performance・
Corporate Profile

1. Fair, appropriate operations with business partners shall be undertaken through compliance withlaws and ordinances concerning purchase and procurement activities.
2. Business partners’ information that we obtain through purchase and procurement activities shallbe kept confidential, and the information security system for preventing the leakage ofconfidential and personal information shall be strengthened.
3. Entertainment and gifts for business partners shall be permitted to the extent that would
normally be considered reasonable, but shall be prohibited if such acts result in personal profits.
■ Environmental measures (green procurement)
In accordance with the "standards concerning the environment," we encourage environmentally-friendly purchase and procurement activities together
with our business partners.

Basic Procurement Policy
At Meiko, we encourage the continuation of procurement activities based on the Basic Procurement Policy below.

Basic Procurement Policy
1. Procurement activities best suited to our global production
2. Smooth, fair, appropriate procurement activities based on closer communication andstrengthened cooperation with our business partners
3. Strengthened environmental measures (chemical substances/green procurement)

Request for our business partners
In accordance with the measures for the environment

In addition, in Fiscal 2009, we sought the assistanceincluded in our Basic Procurement Policy, we areof our business partners and began to take action to

calling for more than 300 business partners to

reduce the environmental burden of distribution andunderstand and practice matters concerning the four

packaging with the results for Fiscal 2008 as thepoints below. In addition to control of greenhouse gas

benchmark.

emissions, waste reduction, and management ofFor example, we succeeded in reducing industrial

specified chemical substances, which we naturally

waste by 4% at our Headquarters and the Kanagawa

undertake in our internal production activities, we also

Plant, as described below.

implementavarietyofmeasurestoensureenvironmentally-friendly procurement. We ask ourbusiness partners to implement and recommend green
procurement, and also request that distribution andsales activities be undertaken in an environmentallyfriendly manner.

1. We confirm laws and regulations (RoHS Directive, ELV Directive, and REACH Regulations) andthe content of environmentally hazardous substances to encourage the procurement ofcompliant products and maintain and improve the environmental quality of our products.
(1) RoHS Directive: EU restriction on the use of certain hazardous substances in electrical and electronic equipment(2) ELV Directive: A directive adopted by the EU to reduce the environmental burdens of end-of-life vehicles(3) REACH Regulations: EU law for protecting people’s health and the environment(4) JIG (1-R): Legally controlled substances specified in the guidelines concerning the disclosure of information regarding chemical
substances contained in electrical and electronic equipment(5) Customers’ standards

2. We encourage the signing of the Memorandum on Environmental Protection and Guarantee of
Non-Use of Environmentally Hazardous Substances to ensure environmental protection together
with our business partners. We sign this Memorandum and Guarantee with our major business
partners, including manufacturers to whom we outsource processing. We have signed these
documents with approximately 50 companies, including 20 companies added in Fiscal 2009.
3. We strive to reduce the discharge of industrial waste and encourage the use of this waste asa valuable resource by recycling it or using it in other ways together with our business
partners.

From Our Business Partners

Assistant General Manager

Department
Mr. Kiyohito Nakayama Electronics
The Kouyoh Trading Company, Ltd.

Industrial waste from Headquarters andKanagawa Plant

In accordance with our belief that a company cannot

Fiscal 2008

2,000,000m3

environment, in 2004 we obtained Environmental ISO 14001

Fiscal 2009

1,920,000m3 (down 4%)

We have made it our corporate policy to devote ourselves tocontinue to exist unless it is in harmony with the global
certification after being examined by LRQA.
building a sustainable world together with society, local
communities, and our business partners through theRequests for our business
partners

27(1) Focus on green procurement,compliance with the green procurement standard,
provision of information concerning "eco products"(2) No idling(3) Waste reduction(4) Emergency communication channels

corporate activities we practice as a trading company.
In providing materials for PWBs to Meiko Electronics Co.,
Ltd., we would like to propose a variety of products that

*Mr. Nakayama is second from the left.

comply with environmental regulations in accordance with the company s Basic Procurement Policy. In
addition, we would like to reduce the environmental burdens of the company s products by taking the
manufacture, collection, and disposal of the products into consideration. In doing so, we aim to contributeto the global environment while continuing to do business with Meiko Electronics Co., Ltd.

28

Message fromthe President

MEIKO GROUP
Corporate Social Responsibility

Meiko’s Approach
to CSR

Environmental Report

Special Feature

At Meiko, we believe that minimizing the environmental burdens of our businessactivities is our mission and our responsibility as a company helping to achieve asustainable society.

Management
SystemSociality Report

System for Environmental Management

Environmental
ReportCommunication
Tools

To implement our Basic Environmental Policy, we have

CO2 emissions and achieve zero emissions.

established an ISO environmental management system, and have

In April 2009 we established a Safe Environment Management

appointed a person responsible for controlling the environmental

Office, which controls the environmental management

management system (EMS) at each plant in Japan and overseas.

activities of the entire company. Through these initiatives, we

We have also launched a comprehensive project named

are further strengthening our measures as we engage inthe Eco Project, in which we undertake activities to reduce

environmentally-friendly business activities.

Financial Performance・
Corporate Profile

System for furthering Environmental Management
Board of Directors
President & CEO
General Manager Responsible for EMS (Japan)
Internal environmental auditor from the ISO Environment Group

Basic Environmental Policy“Meiko recognizes that protecting the global
environment and committing to clean air andwater are critical responsibilities that we havefor the generations that come after us.
We use resources effectively and operate in a waythat is compatible with our living environment.”
Environmental Action Guidelines
Meiko’s businesses include the pattern design and manufacture of printed wiring boards and the
manufacture of metal masks, as well as the development and manufacture of electronic devices. We
consider the implications of these activities for the environment, and emphasize the importance of reducing
their impact in terms of air, noise, water quality and use, and energy consumption.
In accordance with our basic environmental policy, we fully comprehend the impact our business activities
have on local communities. We make every effort, in both technical and financial terms, to prevent
environmental pollution and reduce our environmental footprint through the following measures:
1. We have established a structure for strengthening our environmental conservation activities, and we develop and revise our environmental
management system, operate the system appropriately to reduce our impact on the environment, and work continuously to improve both.
2. We contribute to environmental conservation by making efforts to conserve resources and energy, reduce waste, and encourage recycling.
3. We properly manage chemical substances to limit their usage and reduce their environmental impact.
4. We fully comprehend the impact of environmental pollutants and work to prevent environmental pollution.
5. We observe all laws, regulations, ordinances, and other requirements concerning the environment.
6. We set environmental goals and objectives, conduct environmental conservation activities, and strive to improve these activities.
7. We provide training and instruction to all our employees with the aim of instilling a strong awareness of environmental conservation
activities in them.
8. We are documenting this environmental policy and distributing it to all our employees, and are also making it available to the public.
Revised (No. 5) on October 1, 2009
Established on March 6, 2000
President & CEO Yuichiro Naya29

Eco Project
CO2 Reduction Project

Project for reducing CO2 emissions from plants

Zero Emission Project

Project for achieving zero emissions from plants

Person responsible for EMS at Headquarters District

Safe Environment Management Office

Person responsible for EMS at Kanagawa District●Management concerning ISO 14001

Person responsible for EMS at Fukushima Plant

・Energy conservation
・Reduction of raw material consumption
・Waste reduction

Person responsible for EMS at Yamagata Plant●Furthering environmental improvement

Kanagawa Plant
Fukushima Plant
Yamagata Plant
Miyagi Plant
Guangzhou Plant
Wuhan Plant

Person responsible for EMS at Miyagi Plant
General Manager Responsible for EMS (Wuhan)
General Manager Responsible for EMS (Guangzhou)
Internal environmental auditor from the ISO Promotion Office
Guangzhou Plant in China

General Manager Responsible for EMS

Internal environmental auditor from the ISO Promotion OfficeWuhan Plant in China

Haruyuki Naya Director, Managing Executive Officer

At Meiko, we have been encouraging environmentally friendly production activities with a focus on energy conservation, resource
conservation, and waste reduction.
In Fiscal 2009, we held monthly committee meetings on energy conservation and the reduction of raw material consumption with
employees from our bases in Japan.
Beginning in Fiscal 2010, we will introduce TPM activities as part of production reform at our plants in Japan and overseas. Throughthese activities, we will aim to improve the operational efficiency of facilities and reduce raw material consumption, mainly at
production sites, thereby furthering our environmental management to address environmental issues.

Acquisition of ISO14001 certiﬁcation
We view ISO14001 as an important standard forall our production bases have now obtained ISO14001

environmental management, and began to take action

certification.

toward obtaining certification in Fiscal 2000. Since ourEach of our plants has been striving to maintain and improve

Headquarters and Kanagawa Plant obtained certification in

its ISO14001 system, and their efforts have been recognized in

Fiscal 2001, all our existing plants in Japan and overseas

regular examinations and update examinations.

began to work toward obtaining certification. We also took
prompt action to obtain it at newly constructed andexpanded plants, including the Wuhan Plant. Consequently,

Our acquisition of ISO14001 certification
Mar. 27, 2001
Sept. 25, 2001
Apr. 17, 2003
Apr. 30, 2003
Apr. 22, 2005

Headquarters and Kanagawa Plant
Yamagata Plant
Extended certification obtained by the Fukushima Plant
Guangzhou Plant in China obtained certification
Integrated certification obtained by the three Plants in Japan
Extended certification obtained by MD SYSTEMS Co., Ltd.

Apr. 28, 2006 Extended certification obtained by Miyagi Plant
Extended certification obtained by Metal Mask Dept.
Feb. 20, 2007 Wuhan Plant in China obtained certification
Mar. 26, 2009 Extended certification obtained by Meiko Research andDevelopment Center, Yamato Technology Center, and
MEIKO FINE Co., Ltd.

30

Message fromthe President

MEIKO GROUP
Corporate Social Responsibility

Meiko’s Approach
to CSR

Environmental Report

Special FeatureManagement
SystemSystem for complying with environmental laws and ordinances
Environmental

laws

and

ordinances

have

been

protection in each local community.

In accordance with our Environmental Policy andamended due to increasing awareness of environmental

In accordance with ISO14001, we identify the laws

Environmental Action Guidelines, we have been striving

impact. We believe that ensuring our compliance withand ordinances of individual regions that are related toto reduce the use of electricity, heavy oil, and otherall the amended laws and ordinances of individual

our business activities, and watch for any amendments

sources of energy that cause CO2 emissions. In Fiscal

regions will lead to our contributing to environmental

to ensure full compliance.

2009, however, both the total amount of emissions and・Basic Act on Establishing a Sound Material-Cycle Society
・Act on Improvement of Pollution Prevention Systems in Specified Factories

Basic acts
Pollution control

Prevention of
global warming

・Air Pollution Control Act・Water Pollution Control Act・Sewerage Act
・Noise Regulation Act・Vibration Regulation Act・Offensive Odor Control Act
・Industrial Water Act・Soil Contamination Countermeasures Act
・Purification Tank Act
・Act on Promotion of Global Warming Countermeasures

Waste regulation

Toxic substance control

volume in the first half of the fiscal year.
In the next fiscal year, we will save even more energy to

Energy conservation

・Act on the Rational Use of Energy (Energy Saving Act)

Initiatives concerning electricity

Ordinances and related
regulations

・Kanagawa Prefecture Basic Environmental Ordinance・Kanagawa Prefecture Basic Environmental Plan
・Kanagawa Prefectural Ordinance on Conservation of Living Environment
・Ayase City Ordinance on Sewerage

・Waste Management and Public Cleansing Act
・Act on the Promotion of Effective Utilization of Resources (Recycling Law)
・Act on Recycling of Specified Kinds of Home Appliances (Home Appliance Recycling Act)・Act on the Evaluation of Chemical Substances and Regulation of Their Manufacture,(Chemical Substances Control Law)

・Fukushima Prefecture Basic Environmental Ordinance・Fukushima Prefecture Basic Environmental Plan
・Fukushima Prefectural Ordinance on Conservation of Living Environment
・Yamagata Prefecture Basic Environmental Ordinance・Yamagata Prefectural Ordinance on Conservation of Living Environment

・Act on Confirmation, of Release Amounts of Specific Chemical Substances in theEnvironment and Promotion of Improvements to the Management Thereof (PRTR Act)・Fire Service Act (Hazardous Materials Regulations)・Poisonous and Deleterious Substances Control Act
・Industrial Safety and Health Act・Miyagi Prefecture Basic Environmental Ordinance・Miyagi Prefecture Basic Environmental Plan・Miyagi Prefecture Pollution Prevention Ordinance (water, air, noise, vibration, and offensive odors)

ensure that the emission rate is reduced.

materials, water, and paper, which should be saved, andof our corporate activities. As a result, we found that the types

waste, including plastic waste, sludge, waste acid, and wasteof energy that have a significant impact on the environment

alkali, which should be reduced. Given these results, we haveinclude electricity, heavy oil, gas, and gasoline. Also closely

been taking actions under a new medium-term plan for Fiscal

related to environmental impact are resources such as raw

2009 to 2011, with Fiscal 2008 being the benchmark year.

Fiscal 2009 results - status of achievement of environmental targets and initiatives taken

The greatest source of CO2 emissions at Meiko is the use of electricity. In Fiscal
2009, both the total amount of consumption and rate of consumption per
production volume increased from the previous year because of the operation loss
caused by the decrease in orders in the first half of the fiscal year and the delay inimproving our energy-saving measures.
We will save on the amount of electricity used for the air-conditioning system andother facilities.

125

280

100

260

75

240

50

220

25

(1,000 tons of CO2) 200

07

08

0

09

Changes in our electricity consumption
Rate of consumption per production volume(based on the figure for Fiscal 2007 set to 100)

Total consumption
350

150

300

125

250

100

200

75

150

50

100

25

50

(Million kWh)Heavy oil is the second greatest source of our CO2 emissions, followed byelectricity, because we use it as boiler fuel at our plants in Japan and the
Guangzhou Plant in China. In Fiscal 2009, we reduced both the total amount ofconsumption and the rate of consumption per production volume thanks to more
efficient facility operations.
We will reduce the use of heavy oil by improving how we use it or by switching tonatural gas, for example.

0

07

08

0

09

Miyagi Guangzhou Wuhan

△

×

△

×

×

×

×

×

×

×

×

-

-

-

-

-

-

○

○

○

×

-

○

○

×

×

○

△

○

×

△

○

○

○

○

○

○

○

○

○

-

△

○

○

○

○

×

-

○

×

○

○

-

-

×

○

○

×

×

×

Changes in our heavy oil consumption
Rate of consumption per production volume(based on the figure for fiscal 2007 set to 100)

Total consumption
12,000150

10,000

125

8,000

100

6,000

75

4,000

50

2,000

25

(1,000ℓ) 0Initiatives taken at each plant for achieving environmental targets
Kanagawa Fukushima Yamagata

300

Financial Performance・
Corporate Profile*The rate of consumption shown above is per production of 1m of PWBs.

Target: 5% reduction from Fiscal 2008 level

Up 13.8%
Up 3.7%
Down 4.4%
Down 12.5%
Down 1.4%
Down 9.2%
Down 19.0%
Up 5.6%
Down 17.7%
Up 1.1%150

2

Initiatives concerning heavy oil

Meiko conducted an assessment of the environmental impact

Electricity
Heavy oil
Natural gas
Gasoline
Water
Photocopying paper
Plastic waste
Waste acid
Waste alkali
Sludge320*The rate of consumption shown above is per production of 1m2 of PWBs.

Results of the initiatives we took in Fiscal 2009

Status of achievement

Communication
Tools

Rate of emissions per production volume(based on the figure for Fiscal 2007 set to 100)

Total amount of emissions

the previous year due to the decrease in production

・Act on the Protection of the Ozone Layer through the Control of Specified
Substances and Other Measures
・Act on Ensuring the Implementation of Recovery and Destruction of
Fluorocarbons concerning Designated Products

Ozone layer protection

Environmental
ReportChanges in the amount of our CO2 emissions

rate of emissions per production volume increased from

Environmental laws and ordinances

Sociality Report

Our CO2 emissions and initiatives for their reduction (electricity, heavy oil, natural gas, and gasoline)

07

08

0

09

*The rate of consumption shown above is per production of 1m2 of PWBs.

Initiatives concerning natural gas
Note 1: The results at left show the extent towhich we have achieved the targets. They are
not the aggregated values of all the plants.
The results shown at left are the values per
square meter of production in comparison
with the Fiscal 2008 results, which are thebenchmark of the environmental targets we
set according to a three-year plan that runs
from Fiscal 2009 to 2011.

We use natural gas as boiler fuel at the Wuhan Plant in China. In Fiscal 2009, wereduced the rate of consumption per production volume thanks to more efficientfacility operations.

Changes in our natural gas consumption
Rate of consumption per production volume(based on the figure for fiscal 2007 set to 100)

Total consumption
3,500

150

3,000

125

2,500

100

2,000

75

1,500

50

1,000
500

25

1,000m2 0

0

07

08

09

*The rate of consumption shown above is per production of 1m2 of PWBs.

Initiatives for Preventing Global Warming
Meiko views the issue of greenhouse gas as a significant

2008 continued until the first half of Fiscal 2009, and ourthreat to our precious earth. As a result, since Fiscal

electricity consumption increased from the previous year,

2008, we have been undertaking initiatives focused on

both in terms of the total amount of consumption and thethe reduction of CO2 emissions to respond to the revised

rate of consumption per production volume.

Energy Saving Act and the Act on Promotion of Global

31

A reduction trend commenced in the latter half of Fiscal

Warming Countermeasures. However, the impact of the2009, and we will focus on strengthening measures for

decrease in orders due to the economic crisis in Fiscal

further reduction.

Initiatives concerning gasoline
Meiko has been striving to reduce the volume of gasoline used inCompany-owned vehicles. These efforts have proved successful.
In addition, we are implementing activities for reducing CO2 emissions due to
distribution.

Changes in our gasoline consumption
Rate of consumption per production volume(based on the figure for fiscal 2007 set to 100)

Total consumption
250

150

200

125
100

150

75
100

50

50

(1,000ℓ) 0

25
07

08

0

09

*The rate of consumption shown above is per production of 1m of PWBs.
2

32

Message fromthe President

MEIKO GROUP
Corporate Social Responsibility

Meiko’s Approach
to CSR

Environmental Report

Special FeatureManagement
SystemSociality Report

Zero Emissions

Environmental Quality of Products

Environmental
ReportCommunication
Tools

Reduction and recycling of waste
We have been reducing waste based on the 3R

Emission Pro to reduce waste and recycle it into

In accordance with our Environmental Action Guidelines,

substance control rules, and request that our businessstrategy (reuse, reduce, and recycle). In the last

valuable resources. The recycling rate of waste - thewe strictly manage our production process to ensure

partners submit guarantees of non-use and analysis

three years, we have been particularly focusing ourpercentage of waste that was used for purposesthat our products do not contain hazardous substances

reports. We respond to our customers requests for

efforts on the separation of waste for recycling. In

other than landfill - exceeded 95% at our plants inprohibited by the RoHS Directive, ELV Directive, REACH

research by using tables of ingredients submitted by our

Fiscal 2009, we carried out a project named ZeroJapan in Fiscal 2009.

Regulations, and other laws and regulations. Specifically,business partners so that our customers can use ourwe stipulate prohibited substances ourselves in our chemical

products with a sense of security.

*"Recycling" above includes thermal recycling.
*The recycling rates at our plants in China (Guangzhou and Wuhan) are excluded because they are not fully known.

(Note) At Meiko, our initiatives for ensuring the superior environmental quality of our products have been highly
rated by our customers. As a result, we have been recognized as a Green Partner by many of our customers, whohave issued us with Green Certificates.

Examples of our initiatives for reducing and recycling waste*RoHS Directive: RoHS is an acronym for Restriction of Hazardous Substances used in electrical and electronic equipment. The RoHS Directive is an EU regulation on hazardous substances that restricts the use ofsix substances - lead, cadmium, mercury, hexavalent chromium, polybrominated biphenyl (PBB), and polybrominated diphenyl ether (PBDE) - in electrical and electronic equipment released in EU countries
from July 1, 2006 onward.

Internal treatment of concentrated waste acid
(Miyagi Plant)

Recycling of craft paper(Guangzhou Plant)*ELV Directive: An EU directive that restricts the use of environmentally hazardous substances - lead, cadmium, mercury, and hexavalent chromium - in vehicles. This regulation is aimed at recycling end of life
vehicles (ELV).

We used to dispose of concentrated waste acid, which is generated in the
production process, as waste liquid. In August 2009, we introduced atreatment device with which we internally treat all the concentrated
waste acid. This resulted in a reduction in the amount of our waste liquid
disposal.

We used to purchase white sponges to use as cushioning materials when
packaging products. We succeeded in recycling waste craft paper, whichis generated in the buildup process, into cushioning materials. The
efficient use of the waste was enabled by using a dedicated processor to
cut the paper.

Before33

Financial Performance・
Corporate Profile

Our initiatives for ensuring the superior environmental quality of our products

After

Waste reduction through garbage separation(Kanagawa Plant)

Reduction of waste sensitive material and developer(Wuhan Plant)

We have been encouraging the careful separation of garbage, which used
to be disposed of as industrial waste. This has resulted in a significant
reduction of waste and an increased garbage recycling rate. The separated
garbage is collected by specialized contractors and recycled into resources
such as raw materials and fuel. This is an efficient means of reducing ourenvironmental burdens that requires no initial investment ormaintenance costs.

We reduced waste dry film and developer sludge, which are industrial
waste, by steam-heating and draining them and compressing them witha vacuum pump to achieve a volume reduction.

BeforeAfter

Weight before volume reduction:
50.86kg

Weight after volume reduction:
25.38kg*REACH Regulations: REACH stands for Registration, Evaluation, Authorization of Chemicals. These are EU regulations on the use of chemical substances that came into force in June 2007 to protect people’s
health and the environment from hazardous chemical substances.

■ Prohibited chemical substances (substances the manufacturing anduse of which is prohibited by the laws of Japan and other countries)
We have specified the following 25 substances as prohibited chemical substances and request that our business partners submit a guarantee of the
non-use of these substances and an analysis report when we procure materials from them.

1. Asbestos
2. Azo dyes and pigments that form specific amines
3. Cadmium and its compounds
4. Hexavalent chromium and its compounds
5. Lead and its compounds
6. Mercury and its compounds
7. Specific bromine series flame retardant (PBB/PBDEs)
8. Cobalt chloride
9. Polychlorinated terphenyls (PCTs)
10. Polychlorinated biphenyls (PCBs)
11. Polychlorinated naphthalene (with three or more chlorine atoms)
12. Polyvinyl chloride (PVC)
13. Short-chain chlorinated paraffins (C10 - C13)
14. Specific organotin compounds (TBT, TPT, trisubstituted organotin compound)
15. Radioactive materials
16. Ozone depleting substances (CFCs, halons, carbon tetrachloride, 1.1.1-trichloroethane)
17. Fluorinated greenhouse gases (PFC, SF6, HFC)
18. Phthalic acid/phthalate compounds, di-isobutyl (DEHP, DBP, BBP, DINP, DIDP, DNOP, DIBP)
19. Perfluorooctane sulfonate and its salts (PFOSs)
20. Chlorinated flame retardant (TCEP etc.)
21. Dimethyl fumarate
22. Specific benzotriazole
23. Tetrabromo-bisphenol A
24. Inorganic phosphorus flame retardant
25. Dioxins (including dibenzofurans)

A-1
A-2
A-3
A-4
A-5
A-6
A-7
A-8
A-9
A-10
A-11
A-12
A-13
A-14
A-15
A-16
A-17
A-18
A-19
A-20
A-21
A-22
B-1
B-2
B-3

34

Message fromthe President

MEIKO GROUP
Corporate Social Responsibility

Meiko’s Approach
to CSR

Environmental Report

Special FeatureManagement
SystemPaper consumption

Measures for Reducing Environmental Burdens
Meiko is aware of the significance of the impact of its

pollution and the standards agreed on with local

plant operations on the local environment and believecommunities. We are also striving to reduce the total

it has a duty to reduce these burdens. Specifically, weemissions, water consumption, and paper consumption

comply strictly with laws and ordinances for preventing

confirmed in accordance with the PRTR Act.

Sociality Report

Changes in our photocopying paper consumption

We have been making comprehensive efforts to reduce the use of paper to help
save and protect forest resources.
We also purchase FSC-certified paper, which is made from materials fromwell-managed forests. We also encourage reduced use by promoting a paperlessoffice through computerization.

Environmental
ReportRate of consumption per production volume(based on the figure for Fiscal 2007 set to 100)

Total consumption
12,000150

10,000

125

8,000

100

6,000

75

4,000

50

2,000

25

1,000 sheets 00708Communication
Tools
Financial Performance・
Corporate Profile

0

09*The rate of consumption shown above is per production of 1m2 of PWBs.

Activities for reducing environmentally hazardous emissions＊FSC certification: The FSC, the Forest Stewardship Council, is an international organization that certifies forests that produce timber and checks whether or not the timber from such forests is used in the

We control the quality of the water we discharge andthe local environment. The table below shows thethe state of the gases we emit into the atmosphere bylevels of the substances we have emitted from ourmeasuring them on a regular basis to help maintainplants, all of which are below the standard.

production and processing of goods. The FSC certifies that the timber is produced using methods that are friendly to the forest environment, profitable for local communities, and economically sustainable. In
addition, consumers can contribute indirectly to the protection of the world’s forests by purchasing products with FSC labels.

Table showing burdens

Measured values for discharged water quality and atmospheric measurements
Water quality

Plant name
Kanagawa
Plant

Fukushima
Plant

Yamagata
Plant

Miyagi
Plant

Atmosphere
Soot and dust
concentration

Nitrogen oxide
concentration (NOx)Measurement unit

g/m3N

v/vppmSteam boiler Actual value

pH

BOD

COD

SS

Equipment Substance

Measurement unit

─

mg/L

mg/L

mg/L

Actual value

8.2

14.0

17

─

Standard value 5.7〜8.6

0.004493

River: 25
River: 25
River: 70
Public sewerage:300 Public sewerage: - Public sewerage:300

Standard value─

180
Air Pollution Control Act

Measurement unit

g/m3N

v/vppmSteam boiler Actual value

0.046

99

Measurement unit

─

mg/L

mg/L

mg/L

Actual value

7.7

18.0

13.0

3

Standard value 5.8〜8.625（20）

25（20）

70（50）

Standard value

0.3
Air Pollution Control Act

180
Air Pollution Control Act

Measurement unit

─

mg/L

mg/L

mg/L

Measurement unit

g/m3N

v/vppmActual value

7.12

17.7

16.69

2.81

Actual value

0.004559.5

boilerStandard value 5.8〜8.625（20） 160（120） 60（50）Standard value

0.3
Air Pollution Control Act

180
Air Pollution Control Act

Measurement unit

─

mg/L

mg/L

mg/L

Measurement unit

g/m3N

v/vppmActual value

7.3

110

68

6.0

Actual value

0.012

76

Standard value 5.8〜8.6 160（120） 160（120） 200（150）Standard value

0.3

180
Air Pollution Control Act

Measurement unit

─

mg/L

mg/L

mg/L

Measurement unit

g/m3N

v/vppmGuangzhou
Actual value
Plant

7.3

18.6

79.7

13.0

Standard value

6〜9

20.0
（300）*

90.0（500）*

Measurement unit

─

mg/L

mg/L

Actual value

7.45

15.2

50.0

Standard value

6〜9

20.0

100

Wuhan
Plant

boilerActual value

48.10

60

Standard value

National std: 100
Local std: 80

400

mg/L

Measurement unit

g/m3N

v/vppm

61.0

Steam boiler Actual value

40.1

130.1070Standard value

50

400

boiler339.65-The value in each "Standard value" column represents the upper limit per product, and the value in parentheses in the column represents theupper limit of the daily average.
-The water quality measurement items are partial disclosures of the living environment items of the Water Pollution Control Act.
*In consideration of the fluctuations in the measured values of BOD and COD, the pipes of the Guangzhou Plant have been connected to the sewage treatment center of Guangzhou City.
As a result, the standard value of BOD was changed from 20 to 300 and that of COD was changed from 90 to 500 in November 2009.

At Meiko, we take measures to gain an understandingby classifying the inputs into energy, water, materials,of the full scope of our environmental burdens.

andThe table below shows our environmental burdens foratmospheric release, water discharge, waste andFiscal 2009. We will aim to achieve greater

resources, and recycling.

chemical

agents,andtheoutputs

into

Environmental burdens of our business activities
Energy input

InputsResources

Electricity

326,937 MWh

Heavy oil

7,335 kℓNatural gas

3,251 km3

Gasoline

187 kℓKerosene

21 kℓ

Water
Photocopying paper

Chemical substances

9,315 km3

PRTR substances

555 t

9,362,000 sheets

Scope: Headquarters and the 6 major plants
Period: Fiscal 2009 (April 1, 2009 - March 31, 2010)
Outline of business: Manufacture of PWBs

Atmospheric release

Outputs

Discharge into water table

CO2 emissions

307 ktNOx emissions

33t

Soot and dust

7.3t

PRTR substances

5t

From the field

PRTR substances

0.30 tChemical substances
Amount of waste generated

10,389 t

Amount of chemical substances discharged 70 t

Assistant Manager

Technology Section
Hiroshi Fukushima Environmental
General Affairs Division Kanagawa Plant

At Kanagawa Plant, our environmental policy is voluntary action. We do not have

Water consumption
A large amount of water is used in the manufacture of PWBs for cleaning them.
We have reduced the amount of water used by improving the manufacturing
processes and using reverse osmosis (RO) water. In Fiscal 2009, we launched ourefforts to use the minimum amount of water required to maintain product quality
in each process and to use discharged water through ion exchanging. These efforts
have proven effective in terms of achieving reductions.

complicated rules or agreements, and all employees take part in activities on a

Changes in our water consumption
Rate of consumption per production volume(converted with the figure for fiscal 2007 set to 100)

Total consumption
10,000

150

8,000

125
100

6,000

75
4,000

50

2,000

1,000m3*RO water refers to water purified using reverse osmosis. It is used for cleaning the PWBs.

35

0

25
07

08

09

0

voluntary basis. Many employees have made suggestions to reduce waste andsave water, which demonstrates a widespread increase in awareness of the needto reduce our environmental footprint.
In our Environmental Technology Section, we provide the latest information andtechnical support for reducing environmental burdens so that all our employees
can take action with a sense of security.
We plan to cooperate with the Safe Environment Management Office of the
Headquarters to send information on our successes at the Kanagawa Plant toother production bases.

*The rate of consumption shown above is per production of 1m2 of PWBs.

36

MEIKO GROUP
Corporate Social Responsibility

Communication Tools

Financial Performance

Message fromthe President
Meiko’s Approach
to CSR
特集

Special FeatureManagement
SystemSociality Report

Communication with Stakeholders

Fiscal 2009 Annual Report

Environmental
ReportCommunicationTools

One of the pledges made in our Code of Conduct isand services and in response to inquiries from investors

At the start of Fiscal 2009, our earnings were down andthrough restructuring and our dedication to sales activities

that we will ensure that our corporate activities andand shareholders, we avoid using any expressions that

we were facing tough conditions due to the continuing

on a global scale, enabled us to steadily increase ordermanagement practices are sound and transparent

could potentially contradict the facts with regard to

impact of the global economic downturn that hit during

volumes and bring about a recovery, to the extent thatand continue to be a trustworthy company in order toour management practices, products or services. We

fall the previous year. Since then however, economic

we were able to achieve close to full production at ourgenerate corporate value. In addition to complying

also implement measures such as securely managing

stimulus packages issued by national governments thecore Guangzhou and Wuhan Plants in China during thewith fair disclosure and other related laws andpersonal data in order to firmly establish Meiko as aworld over have started to take effect and demandsecond half of the year. In spite of a decline in net sales,

regulations in every aspect of our operating activities

company that can be trusted.

from emerging countries has continued to increase.

we therefore managed to significantly increase income

This, along with efforts to strengthen our foundations

compared to the previous year.

Participating in exhibitions

Thousands of U.S. dollars

Fiscal 2007

Fiscal 2008

Fiscal 2009

We took part in the JPCA Show in June 2009 and thebooths at both exhibitions also showcased embedded

Printed Wiring Board Expo in January 2010. In addition

PWBs using state-of-the-art technology. A great many

Net sales

783,674

771,727

750,384

to attracting a lot of attention with energy-saving,customers came to see our booths and shared their

Operating income

72,941

17,926

40,772eco-friendly products such as our aluminum heathonest opinions and requests, making both events a

dissipating PWBs and high-power PWBs, the Meikogreat success.

Operating margin

9.3%

2.3%

5.4%

Net income

56,296

5,319

19,650Net margin

7.2%

0.7%

2.6%

Ratio of interest-bearing debt

32.4%

40.1%

37.2%

ROA

7.0%

0.6%

2.1%

ROE

17.2%

1.4%

5.0%

Net income per share

$3.28

$0.31

$1.15

Meiko’s President chaired the organizing committee for the JPCA Show in June 2009

Financial Performance・
Corporate Profile

Our booth at the Printed Wiring Board Expo in January 2010

■ Printed wiring board (PWB) sales according to product and item

Publication of the MEIKO REPORT and creation of an in-house newsletter and website
We publish the MEIKO REPORT at the halfway point
and at the end of each fiscal year in order to provide■ According to productFiscal 2009
$750.4 billion

our shareholders with an overview of our performance

Leisure 4%

and activities during the relevant period and improve

Office equipment 5%

their understanding of the Meiko Group as a whole. For

Computers

our employees, we publish an in-house newsletter

9%entitled MEIKO and have established an in-house

Fiscal 2008
$771.7 billion

OthersAutomotive

information, including messages from the President andOur in-house newsletter MEIKO

details of management policies, we use these as tools
for communication between employees.

Fiscal 2009

aimed at shareholders. We will continue to keep our

subjects such as trends within the group and our

individual

strategies and philosophy via newspapers, magazines,

business partners, employees and all of our otherandinstitutional

investors,

Flex / F/R 1%
Otherscustomers,company websites and other media. Once again instakeholders informed about Meiko so as to give them

Fiscal 2009, we published a large amount of information

a better understanding of the group as a whole.

Double-sided PWB 11%

13%

Modules/PKG 2%

We take every opportunity to publicize information on

DSC DVC 3%

25%

Audiovisual equipment, etc.

Office equipment 6%

7%

Computers
8%

Communications 7%

Automotive

DSC DVC 8%

18%■ According to item
$750.4 billion

Releasing information via a range of diﬀerent media

23%

Leisure 9%
8%website called MEIKO EXPRESS. In addition to providing

Flat-screen TVs

14%

23%

Audiovisual equipment, etc.

Communications 8%

Others

Flat-screen TVs

15%

Six-layer PWB
16%

OthersDouble-sided PWB 9%

13%

Modules/PKG 1%

Stack-up PWB
12%

Fiscal 2008
Flex / F/R 1%$771.7 billion
Stack-up PWB

Four-layer PWB
45%

16%

Four-layer PWB
39%

Six-layer PWB
21%

via economic newspapers, industry journals and media

37

38

Corporate Profile
CorporateProfile
Headquarters: 5-14-15, Ogami, Ayase City, Kanagawa Prefecture, Japan 252-1104
Plants:■Kanagawa Plant

5-14-15, Ogami, Ayase City, Kanagawa Prefecture, Japan 252-1104■

Fukushima Plant

1-2, Aza-Iwasawa, Kamikitaba, Hironomachi, Futaba-gun, Fukushima Prefecture, Japan 979-0401■

Yamagata Plant (Yamagata Meiko Electronics Co., Ltd.)

250, Aza-Maki, Yachi, Kahoku-cho, Nishimurayama-gun, Yamagata Prefecture, Japan 999-3511■

Miyagi Plant (Miyagi Meiko Electronics Co., Ltd.)

8-5, Shigeyoshi-cho, Ishinomaki City, Miyagi Prefecture, Japan 986-0844■

Ebina Office1012, Kamigo, Ebina City, Kanagawa Prefecture, Japan 243-0434■

Guangzhou Plant (Meiko Electronics (Guangzhou Nansha) Co., Ltd.)

No.2 Guangsheng Road, Western Industrial District, Nansha Economic and Technological Development Zone,
Guangzhou, Guangdong Province, P. R. China■

Wuhan Plant (Meiko Electronics (Wuhan) Co., Ltd.)

Shenlong Road, Wuhan Economic and Technological Development Zone, Hubei Province, P. R. China■

Vietnam Plant (Meiko Electronics Vietnam Co., Ltd.)
Lot LD4, Thach That-Quoc Oai Industrial Zone, Hanoi

Established: November 25, 1975
Capital: 10,545.63 million yen
Executives:

Yuichiro Naya, President & CEO
Seiichi Naya, Director, Senior Managing Executive Officer
Takahide Hirayama, Director, Senior Managing Executive Officer
Haruyuki Naya, Director, Managing Executive Officer
Tetsuro Suzuki, Director, Managing Executive Officer

Masanori Matsuura, Director, Executive Officer
Koichi Suzuki, Director
Yasuo Nishiwaki, Senior Corporate Auditor
Kunihiro Sugawara, Auditor
Yutaka Gotoh, Auditor

10,149 (Japan: 983; Overseas: 9,166) *As of March 31, 2010

No. of Employees:

Design, manufacturing, and sales of PWBs

Business:

Design: Pattern design
Manufacturing: Double-sided through-hole PWBs, multi-layer through-hole PWBs, IVH multi-layer PWBs, HDI PWBs,
Flex-rigid PWBs, package modules, etc.
Component mounting

Development, manufacturing, and sales of electronic equipment
PWB testers
Simultaneous multi-image display systems

Organizational Chart (As of May 1, 2010)
Board of Directors

Board of Auditors

President & CEO
Management Reform Headquarters
Management Planning OfficeBusiness Management OfficeInternal Audit Office

General Affairs Dept.

Personnel Affairs Dept.

Accounting Dept.

Information System Dept.

Purchase Dept.

Safe Environment Management Office

Legal and Intellectual Property Dept.

PCB Sales Dept. No. 1

PCB Sales Dept. No. 2

PCB Sales Dept. No. 3

Nagoya Sales Office

Koriyama Sales OfficeOsaka Sales Office

Tokorozawa Sales Office

Nagano Sales Office

Osaki Sales Dept.

Special PWB Sales Dept.

International Sales Dept.

Sales Operation Dept.

International Sales(China) Dept.

Quality Assurance Dept.

Production Design Dept.

Kanagawa Plant

Fukushima Plant

Yamagata Plant

Miyagi Plant

Guangzhou Plant, China

Wuhan Plant, China

Vietnam Plant

CAD Center

2nd Product Development Dept.

1st Product Development Dept.

Equipment Technology Dept.

Meiko Research and Development Center

Metal Mask Dept.

EMS Dept.

Guangzhou EMS Business Dept.

Vietnam EMS Business Dept.

Yamato Plant

Yamato Technology CenterIndustrial Equipment Dept.

Video Equipment Dept.

3940