CSR Report 2011

CSR Report

2011
M E I K O C O R P O R AT E S O C I A L R E S P O N S I B I L I T Y

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

Message from the President

Meiko Group Business Principles

We published our fourth CSR Report 2011 (Japanese version)in late July. This report has been organized to be comprised
Message from the President, Special Feature, Management
System, Sociality Report, Environmental Report, Communication
Tools and Financial Performance sections. We hope that many
people will read this report, and will find in the Report that weare united in a constant commitment to earn your trust by
acting responsibly as a good corporate citizen.

1
2
3
5

Meiko Group Business Principles
In publishing the CSR Report 2011
Message from the President
Meiko’s Approach to CSR

Special Feature

Our Green Society
Initiatives

7

Management System

11

Measures for Ensuring Compliance
Measures for Risk Management

Corporate Charter

1.

1

We will respect diversity and individual employees’ personalities and ensure that all working
environments are safe, motivating and comfortable.
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 part to tackle environmental issues.
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.
We will comply with all applicable rules, laws and regulations, at both the local and global levels,
as part of our international business activities and will respect local cultures and customs andcontribute to the development.
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.

CSR Report 2011

Meiko Electronics Co., Ltd. and affiliated companies*Please see page 37 for a list of organizations

Creation of Comfortable Working Environment
Social Contribution
Supply Chain

27

Environmental Report
Reporting period
This report refers to CSR activities undertaken during
Fiscal 2010 (April 1, 2010 to March 31, 2011) as a rule.
Sections outlining past activities however may include
details relating to before that period. Similarly, in orderto provide the very latest information, this report may
also contain details relating to April 2011 onwards.

Meiko Basic Environmental Policy
System for Environmental Management
Prevention of Global Warming
Cyclical Use of Resources
Prevention of Contamination in Ecosystem
Measures for Reducing Environmental Burdens

Reference guidelines- “Environmental Reporting Guideline (Fiscal Year 2007
Version)” (Ministry of the Environment)- “Sustainability Reporting Guidelines 2006”

Date of publication
Previous report: June 2010
This report: July 2011
* 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.

Communication Tools
Communication with Stakeholders
Financial Performance
Fiscal 2010 Annual Report
Corporate Profile

27
28
30
31
32
33

35
35

36
36

Financial Performance / Corporate Profile

9.

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.

Coverage

Improvement and Expansion of IR Activities

Communication Tools

8.

We will engage in fair, free and transparent competition and fair trade and will maintain sound,
healthy relationships with political and administrative bodies.

All stakeholders with an interest in Meiko Electronics
Co., Ltd.

Research and Development

17
19
20
21
23
25

Environmental Report

5.
6.
7.

We will strive to develop creative technology and pave the way for new business in order to help
create a brighter future.

Initiatives for Quality AssuranceSociality Report

2.
3.
4.

17

Sociality Report
Intended audience

Management System

11
13
15
16

Corporate Governance
Measures for Information Security

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 toquality, safety and customer data protection.

Special Feature

In addition to trying to make reasonable profit through fair competition, our aim
is to establish the Meiko Group as a useful presence to as many members ofsociety as possible. Acting in accordance with the following nine principles, weare therefore committed to the respect of human rights and compliance with thelaw and other applicable rules, in letter and in spirit, both at home and overseas.
By upholding these lofty ideals, our aim is to act as a global company
contributing to the creation of a sustainable society.

We would first like to express our sympathy for the victims of
the Great East Japan Earthquake that occurred a short time ago.
We pray for the safety and speedy recovery of all.

INDEX

Meiko’s Approach to CSR

Provide the best quality and service to customers
and contribute to betterment of society.
Strive to create “the best”.
Elevate our corporate value to improve
the well-being of our employees and society.

In publishing the CSR Report 2011(English version)

37

CSR Report 20112

Message from the President

Message from the President

Through all our business activities,
Meiko is working to implement
sustainable production methods
that are in alignment
with environmentallyconscience practices.

President and CEO

Yuichiro Naya3

CSR Report 2011

We would like to express our condolences to thevictims of the Great East Japan Earthquake that
occurred in March this year. Our plants in
I sh i nom a k i Cit y, M iya gi Pr e f e c t u r e a nd
Hironomachi, Fukushima Prefecture, were also
damaged in the earthqu a ke disa ster. Five
individuals unfortunately lost their lives at the
Miyagi Plant and one person is yet unaccountedfor. The Fukushima Plant had been inaccessible
and the production line consequently stopped dueto the accident at the nuclear power plant. The
plant has currently resumed operation following
modification of the evacuation zone.
The accident at the nuclear power plant drew theattention of the world and has rekindled debate
over the safety of nuclear power. As the world
accelerates the movement to realize a low-carbon
society, it is likely that people will begin to search
for renewable and clean energies to take the place of
nuclear power generation.
If we are to continue to thrive on this planet,then coexisting with the environment has to be our
top priority. Here at Meiko, making a contribution
to this process is one of our top priorities as acompany.
Meiko is actively involved in solving energy
problems and environmental issues such as global
warming. We are making efforts to reduce
environmental burdens and risks produced fromour production process and enhancing resource
efficiency in order to contribute to reduction of theenvironmental impact on our society as a whole
and to promote the construction of a sustainable
society. Attention has been focused on photovoltaic
power generation, which produces clean andrenewable energy, and environmentally-friendly
products such as hybrid cars, electric vehicles, LED
TVs and LED lighting, together with a future
potential of smart grid society. For our part, wehave quickly established production lines for the
likes of high-power and Heat Dissipation PWBs
(Printed Wiring Boards), without which suchproducts couldn’t function, at our second plant in
Wuhan China.
In addition to incorporating environmentallyfriendly technology and expertise into the
manufacturing process for electronic PWB’s, we
intend to actively supply PWB’s that are capable ofmaking a difference to the environment on the
product front as well.
In addition to focusing on the environment, it is
crucial that we also gain trust from all of our
stakeholders, including our customers, investors,
employees and members of the local community, inorder to sustain our corporate activities within our
modern day society. Each and every one of ouremployees here at Meiko is made aware of this fact
and trained to effectively promote CSR initiatives.
The bare minimum that we can do to earn the
public’s trust is to ensure that we comply with thelaw and adhere to rules, regulations and ethicalstandards in different societies around the world.
With that in mind, we have formulated a set ofCompliance Regulations and a Compliance Manual
for trainings to our employees.
The quality of our products is one of our key
priorities as a manufacturer. Once you start to haveissues in terms of quality, not only do you lose allof the trust that you worked so hard to earn, but
you also create problems for customers using yourproducts and all of the other stakeholders with aninterest in the company. As we appreciate just how
important quality is here at Meiko and reflect theawareness in our Business Principles, we arecommitted to achieving levels of quality andreliability that guarantee the highest possible levelsof customer satisfaction.
We will continue to contribute to the creation of asustainable society through activities such as theseas we strive to earn the public’s trust. I hope we cancontinue to rely on your support and cooperation in
the future.

CSR Report 20114

Working and prospering in partnership with our stakeholders

Meiko’s Approach to CSR

Employees

Enhancing corporate value
Adequate disclosure

Working together with business partners
Reasonable and fair trade
Continuing to enhance corporate value

Sustainable Society

Shareholders

Business
partners

Sales

Society

Environment
Manufacturing

Meiko’s CSR Declaration
Meiko’s Business Principles and activities alignwith the global social responsibilities
and in turn support an environmentally
sustainable society.

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 turn engage
in Corporate Social Responsibility (CSR) activities.

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

Development

Customers

Localcommunities

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
We have established a CSR Committee and make every effort to improve and expand our CSR activities
here at Meiko.
The CSR Committee is made up of site-specific committee members representing individual plants,
sales offices and other premises and area-specific committee members operating on a groupwide basis.
This makes it possible to organize activities covering all areas of the group’s operations in line with our
CSR Declaration and respond in good faith to input from our stakeholders.

CSR Promotion Framework (CSR Committee)
Actively expanding and maintaining CSR activities
All of our CSR activities here at Meiko are underpinned by our Business Principles and our accompanying
Corporate Charter. We are confident that we can contribute to the creation of a sustainable society bycontinuing to provide our customers with outstanding value and services via our core electronic PWB
operations.

Board of Directors

CSR Committee
President & CEO

Site-specificcommittee members
News reports

Technology and Development Subcommittee

Supply Chain Subcommittee

Corporate Governance Subcommittee

Social Contribution Subcommittee

Human Rights and Safety Management Subcommittee

Risk Management Subcommittee

Compliance Subcommittee

CSR Report 2011

Information Security Subcommittee

5

Quality Assurance Subcommittee

A company’s business revolves around interaction with the various stakeholders who have an interest in
the company, including its customers, business partners, investors, shareholders, employees and the
local community. Establishing relationships with and effectively handling the various matters of interest
to each of these stakeholders is therefore of the utmost importance. Here at Meiko, all of our employees
around the world recognize that CSR is central to every aspect of our business activities and carry out
their duties at the local level with the aim of establishing trust in the company. Through our CSR
activities, we will continue to fulfill our responsibilities as a member of society as we strive to establish
a sustainable society through environmental and social contribution initiatives.

Environmental Management Subcommittee

Secretariat

Working and prospering in partnership with our stakeholders

Area-specificcommittee members

CSR Committee
Chair

CSR Report 20116

Special
FeatureCutting CO2 emission
to counter global warming

Our Green Society
Initiatives

1. Saving energy by automatic cleaning of cooling water piping used for
air-conditioning at our Guangzhou Plant

Special Feature

Meiko recognizes that protecting the global environmentand committing to clean air and water are critical responsibilities
that we have for the generations that come after us.
We use resources effectively and operate in a waythat is compatible with our living environment.
Under this Basic Environmental Policy,
we aspire to create an environmentally friendly society
through our business activities.
In this Special Feature, this year again,
we look at the following examples ofour diverse environmental activities:
I. Taking steps to cut CO2 emissions to counter global warming
II. Helping to create a green society with eco-friendly products.
(Heat Dissipation PWBs and Large Electric Current PWBs)

Meiko believes that it needs to adopt its own, voluntary initiatives to address global warming. We
have been 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 Guangzhou Plant and the
Wuhan Plant in China. These are examples of the initiatives we take at our plants, which are thesource of the reductions we achieve in CO2 emissions.

At the Guangzhou Plant, freezers used for air-conditioners used to be shut down periodically and the inside of
the cooling water piping was cleaned by hand. We have since introduced automatic washing equipment thatenhances operating efficiency by automatically cleaning the piping 18 times a day without shutting down thefreezers. It also saves electricity by keeping the freezing function in optimal condition. As a result, we
succeeded in reducing the amount of electric power used and CO2 emission by 15%.
BeforeAfter

Inside of piping is cleaned bycirculating sponge-shaped balls
through the system.

Inside offreezer

Automatic washing equipment
installed

2. Saving energy by introduction of LED lighting at our Wuhan Plant
Reduction of energy consumption was planned for the Fiscal 2010 at the office and first plant by replacing
fluorescent lighting (1548 40W lamps, 1082 20W lamps) with LED lighting. As a result, we were able to reduce
the amount of power and amount of CO2 emitted by the lighting by 50%. In the future we plan to continue
the switch to LED lighting gradually to further cut down on the amount of electric power used.
BeforeAfter

Comparison of amount of electric power used and CO2 emitted before and after improvement(CO2 conversion factor = 0.00092)

Amount of electric power used (kWh)80,00060,00060,00040,00040,00020,00020,0000
Fluorescent lamp, 4 20W lamps

7

CSR Report 2011

Amount of CO2 emitted (kg-CO2)

80,000

BeforeAfter0

LED lamp, 4 20W lamps

CSR Report 20118

Helping to create a green society
with eco-friendly products

2. More powerful PWBs encourage the rise of photovoltaic power generation and eco-cars
Structural drawing ofLarge Electric Current
PWBs (Example)

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, andhybrid cars. The emergence of these new products and technologies require the use ofcorresponding PWBs.
At Meiko, we aspire to contribute to the creation of a green society by manufacturing
and supplying the high-quality PWBs that these eco-friendly products need.

Feature of the new production method
Thickness of copper is optionally selectable at each layer(105 μm to 500 μm)

Special Feature

1. Heat Dissipation PWB: promoting the use of LED lighting
Heat Dissipation PWB for the backlights of LCD TVs

Heat Dissipation PWB for
the LED downlights

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

LEDs are promising, next-generation light source, andimportant eco-friendly products. They boast low
power consumption and great durability. In addition,
they contain no harmful substances like mercury.
LEDs are likely to find even broader application in the
future, in areas such as lighting equipment for homes,
offices, and vehicles, and backlights for LCD TVs.
Although the light from LEDs generate less heatcompared with conventional incandescent lamps andfluorescent lamps, the LED elements themselves
generate heat and are vulnerable to heat, too. In
addition, LED elements are a type of semiconductor
and are mounted directly on PWBs in many cases. As
a consequence, these PWBs are required to dissipate
heat more efficiently than conventional models.
Meiko is aiming to boost the heat dissipation
performance of PWBs while keeping prices low throughthe establishment of a mass production system. We are
9

CSR Report 2011leading the way in research and development focusedon Aluminum base Heat Dissipation PWBs which
combine highly cost-effective aluminum with highquality heat dissipation resin, and have established mass
production system both inside and outside of Japan.
Characteristics required of LEDs differ significantly
according to applications. LED headlights used byautomobiles, for example, must offer both heat dissipation
and reliability at an extremely high level. At Meiko, we are
therefore involved in research and development of materials
and production methods that fit each application best.
Thus, the emergence of LED lighting requires solutions
to technical issues and the establishment of a systemthat ensures a stable supply of high-quality products at
low prices. At Meiko, we will help protect the global
environment by supporting the growth of LED lighting
through the development and mass production of Heat
Dissipation PWBs using aluminum and other materials.

The issue of global warming caused by greenhousegases is a pressing problem that requires a concerted
effort on the part of the international community. One
technology for countering the problem is photovoltaic
power, a natural and clean energy source that emits
only tiny quantities of CO 2 . The installation ofphotovoltaic power generators is consequently being
encouraged all over the world, and the devices arebeing promoted in Japan under the initiative of thegovernment.
A solar cell used for photovoltaic power generation
directly converts light energy into an electric current
and accumulates the current via PWB. Photovoltaic
power generation requires the use of Large Electric
Current PWBs that are capable of passing a higher
current than conventional PWBs used for personal
computers and other devices.
In addition, the automobile industry is experiencing ashift from gasoline-powered cars to hybrid cars andelectric vehicles. The next-generation vehicles also
require Large Electric Current PWBs, because electronic
controls are used for many of the parts, including
high-power motors used as alternatives to gasoline
engines.
A Large Electric Current PWB needs to have a muchwider area for the current path than is seen withconventional PWBs. Therefore, the copper pattern for
its circuit needs to be much thicker. Meiko has
pioneered the development of heavy copper PWBs,
and has successfully mass produced low-cost, highquality, Large Electric Current PWBs and haveestablished a mass production line at our second plantin Wuhan, China.
The Large Electric Current PWBs we are researchingand developing at Meiko feature an ecologicalmanufacturing process whereby waste liquid drainage
is dramatically reduced by adopting a new production
method developed exclusively by Meiko in place of
conventional etching when forming circuits. We havefurthermore combined technologies for Large Electric
Current PWBs with those of Heat Dissipation PWBs,
and are conducting research and development ofLarge Electric Current PWBs that create a superior heatdissipation effect employing materials such asaluminum and heat dissipation resin.
Thus, to contribute to a low-carbon society, Meikowill continue to evolve and develop Large Electric
Current PWBs that will become the components ofphotovoltaic power generation and eco-friendly
products such as hybrid cars.

From Product Development Kouji Nakayama, General Manager, Meiko Research and Development CenterWe aim to take on the new challenges that will accompany the growth of LEDs.

L

EDs can be made to fit diverse product designs, as they permit diverse combinationsof small 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 usedin more fields, the level of performance required will rise, leading to the generation of
new issues. We plan to overcome these issues by calling on the same accumulated
technologies and enthusiasm we bring to the development of any new technology.

CSR Report 2011 10

Management System

Internal Control System
Our Board of Directors passes resolutions and seeks to refine the following aspects of our system (Basic
Policy on Internal Control System) for ensuring proper operations in accordance with the Companies Act andOrdinance for Enforcement of the Companies Act.

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

Basic Policy on Internal Control System
1. A system for ensuring that the duties of our Directors and employees comply with laws and regulations andour 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

Our organization
At the Meiko Group, the Board of Directors is the principal decision-making body.
Our auditors audit and check the execution of duties by each Director in accordance with the policies of our
Board of Auditors. The Internal Audit Department improves and expands our internal check system andensures that corporate governance and compliance function effectively based on the policy for our internal
control system.

Corporate Governance Framework at Meiko
Shareholder Meeting
Appointment/Dismissal

Appointment/Dismissal

Accounting Auditor

Appointment/Dismissal

Board of Directors

Supervision

Board of Auditors
Supervision

SelectCooperation

President & CEO

Risk Management Committee
Internal
auditing

CSR Committee

Management Department

PWB Sales Department

PWB Manufacturing Department

Research and Development Department

Subsidiaries

Internal Audit Department

Compliance Committee

Internal Control of the Meiko Group in Fiscal 2010
Internal Audit Office

Board of Directors

Board of Auditors- Assistance in improving internal
control, preparations for evaluations,and creation of reports- Passing resolutions on internal control
policies- Passing resolutions on the improvement/
promotion of internal control- Audits and validates of the effectivenessof internal control

President- Operations and directions concerninginternal control- Confirmation of the effectiveness andcoordination of internal control

Group companies’ departments responsible for implementing internal control

11

CSR Report 2011

CSR Report 2011 12Management System

Corporate GovernanceWith the full enforcement of the Financial Instruments and Exchange Act, it became mandatory in Fiscal 2008 for listedcompanies to evaluate their internal control over financial reporting and create and submit internal control reports basedon the outcomes of the evaluations to ensure that their financial reporting was reliable.
Under the Basic Policy on Internal Control System shown above, we developed policies and plans concerning the policy,
procedures, and methods of evaluating our internal control, the framework of evaluations, scope of evaluations, schedulesof evaluations, and recording and storage of evaluation outcomes. We have established a framework for evaluations to be
led by management. In this process, we followed the Practice Standards for Management Assessment and Audit concerning
Internal Control over Financial Reporting set by the Financial Services Agency.
Based on these policies and plans, we again evaluated in Fiscal 2010 the effectiveness of our Companywide internal
control (including account settlement and financial reporting processes) which would have a substantial influence on ouroverall consolidated financial reporting. Based on the outcome, we evaluated the effectiveness of our IT control and internal
control, which is incorporated in our business process and executed in an integrated manner (internal control concerningbusiness processes including account settlement, financial reporting, sales and inventory management, and purchases).
All issues with our internal control identified through the evaluation processes were rectified during the term.
As a result of these processes, we stated that “Our internal control over financial reporting has been effective” in ourinternal control report for Fiscal 2010, and received appropriate opinions from our auditors.
We have submitted our internal control report and financial reports for Fiscal 2010 to the Kanto Finance Bureau following a
resolution by the Board of Directors.

Measures for Ensuring Compliance

Compliance Manual

Meiko positions compliance as a critical aspect of management. Each of our employees complies withlaws and ordinances, social ethics, and morals in their work. We have codified our standards in the
Corporate Charter of the Meiko Group and the Code of Conduct. We also explain the framework of
our activities in our Compliance Regulations, while the Compliance Manual shows more specificcompliance rules to be observed by the Company and its employees.

The Compliance Manual provides specific explanations of Meiko’s approach to compliance, the compliancestructure, and areas requiring compliance by executives and employees. These are listed below.

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

Past and Future Initiatives(1) Fair selection of business partners (2) Prohibition of requests for kickbacks (3) Prohibition of excessive gifts andentertainment (4) Prohibition of the reception of other conveniences and facilities

The initiatives we have taken to ensure compliance include setting up a Compliance Committee,
developing Compliance Regulations and a Compliance Manual. We have also introduced awhistleblowing system and set up the Help Line as a direct point of contact with employees. Mattersreported under this system are discussed by the Compliance Committee as necessary and responses are
considered by the Committee.
In order to have everyone in the Company striving for compliance, we believe it is essential not only
to prepare a system, but to foster an atmosphere and sense of compliance awareness. The Company's
own unique Compliance Handbook can be accessed on our in-house website and pamphlets are
distributed to all executives and employees in order to raise awareness of employees.

Meiko has established its own framework for compliance activities. The figure below shows the major
elements of the Compliance Regulations.

Major components of the Compliance Regulations
Set-up of Compliance Committee
Establishment of a whistleblowing system (Help Line), obligation to provide notification and measures
following notification
Responsibilities of executives and employees
Provide compliance trainings(1) Disclosure of appropriate corporate information (2) Correct recording (3) Comprehensive internal auditing

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

Introduction of the Help LineWe have introduced a whistleblowing system (Help Line), which permits our employees to reportviolations or possible violations of laws, ordinances, or other regulations without hesitations. We protect
information and conduct fact-finding with particular care so as to protect whistleblowers from any
disadvantages. Whistleblowers can choose to remain anonymous.

Provision of compliance education
At Meiko, we provide compliance education because we believe that the idea of compliance will beeffective only when it is adopted by all executives and employees across the entire organization. We
issue warnings on insider trading to all employees at the time of quarterly settlement. In addition,
efforts are made to raise awareness by providing examples of compliance violations, in our newslettersand on our in-house website.

Organizational Chart on ComplianceProtection of intellectual property rights
Board of Directors

Board of Auditors

Meiko recognizes the importance of protecting intellectual property rights and take steps to avoid
infringing, or allowing others to infringe, on such rights.
*

Reports

Instructions

Reports

Corporate lawyer

At Meiko Group, we respect the intellectual property rights of others, including patent rights and copyrights. We
develop a new product only after confirming that it will not infringe on any intellectual property rights held by others.
Compliance Committee
Administrative Section

Cooperation

Antisocial forces
Reports

Instructions

Help Line
Whistleblowing

Departments and employees at Headquarters and affiliates

13

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

Instructions

CSR Report 2011

Meiko refuses to have anything to do with any individuals and organizations perceived as antisocial
forces that threaten the social order and safety, not only its attributes, but pursuit of economic gainusing violence, force or fraudulent techniques or its use, and is resolutely determined to work in close
cooperation with external dedicated institutions such as the police in accordance with “Regulations for
dealing with antisocial forces” and various “Manuals”.

CSR Report 2011 14

Management System

Compliance Regulations and Organizations

3. Compliance for our investors

Measures for Information Security

Measures for Risk Management

Our business is the manufacture and sales of electronic PWBs. To continue our business, we believe that it
is essential that our customers have faith that our information security is sufficiently reliable that we will
never leak important information.
As a company-wide initiative on information security, we have obtained ISO27001 certification inInformation Security Management System (ISMS), with which we will strengthen information management
systems with our customers.

Meiko has created a set of Crisis Management Regulations and also Emergency Manual, which assume avariety of risks associated with environments, disasters, quality and information security. We have also
created a Business Continuity Plan (BCP) to minimize impact on the customer's production plan in
preparation for emergencies. As a measure to prevent information-related crises, we have set up a serverat the Yamagata Plant as well as at Headquarters and we constantly back up our data to the additional
server.
In the event of a disaster or accident, we will immediately set up an Emergency Headquarters led by the
President & CEO, and we have prepared an organization to determine the cause, assess the situation andtake comprehensive future measures, to quickly cope with risk and prevent reoccurrence.

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

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." Basedon these regulations, we handle information with particular care.

Type of crises and risks
Risk factors

Protecting customer information
Protecting the confidential information of our customers is the most fundamental requirement. We takecomprehensive measures to protect customer information in accordance with Section 1 of ourInformation 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 whenrequired to do so by laws or ordinances or when our customers have approved the disclosure for compelling business reasons.

Past information security initiatives
At Meiko, we receive important
information from customers. We
therefore recognize the importance ofinf o r m at i o n s e c u r i t y, a n d t h eInformation System Division of our
Headquarters obtained ISO27001
certification in 2006. Since then, we
have been taking steps so that our entire
company can obtain the certification.

When the Great East Japan Earthquake occurred on March 11, 2011, we established the Emergency
Headquarters with allocation of staff immediately following the quake. This group assessed the damage andconfirmed what needed to be done including coming up with ways to care for employees, restoring the factory,
continuing to conduct business, explaining the situation to customers and studying future measures. Throughthis set of actions, we were able to determine progress, make decisions and give instructions in real time.
At the Miyagi Plant, the route to the site was confirmed and staff in charge was immediately dispatched to
set up local relief headquarters, whereby safety of all local employees was checked and aid was provided.
Immediately following the earthquake, because the Fukushima Plant was in the evacuation zone for the
nuclear power accident, employees were emergency-evacuated, and emergency shelter and care were
provided for the evacuees with the cooperation of Ayase City in Kanagawa Prefecture, where our Head Office
is located. Concerning production activities, production of the items that were being produced at the stricken
plant was shifted to other plants in Japan and overseas.

January 2006
January 2007

October 2009
March 2010
December 2010
March 2011

The Information System Division obtained BS7799-2 certification.
Transfer to ISO27001 certification was completed. (At the same time, we
expanded the scope to eight departments and successfully obtained
certification.)
Four applicable departments at Wuhan Plant in China obtained ISO27001
certification.
We obtained ISO27001 certification after expanding the applicable range to 20
departments at the Headquarters and four sales branches.
Six applicable departments at the Guangzhou Plant in China obtained ISO27001
certification
We obtained ISO27001 certification after expanding the applicable range to all
four PWB plants in Japan and four sales and research bases.

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

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 and tsunamis (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

Future information security initiatives
We will continue to strive to expand the scope of our certification. ISMS has been introduced for all domestic
production, sales and R&D bases, and overseas Guangzhou, Wuhan and Vietnam production departments.

15

CSR Report 2011

CSR Report 2011 16

Management System

1. We protect customer information and in doing so build trust with our customers in accordance with one of our Business
Principles, namely, "We will provide our customers with outstanding value and services and make a contribution 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).

Response to Great East Japan Earthquake

Sociality Report

Acquisition of ISO9001 and ISO/TS16949 certifications
At Meiko, we have obtained ISO9001 and ISO/TS16949 certifications, which are global standards, and have beenworking on continuous improvements.
The ISO9001 and ISO/TS16949 certifications we have obtained
ISO9001

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, andwe fulfill our responsibilities accordingly.
At the same time, we give consideration to
our stakeholders as we engage in our business activities.

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)

Jan.

27, 2006 Extended certification obtained by the Miyagi Plant

Nov. 29, 2006 Wuhan Plant in China obtained certificationFeb.

20, 2008 Extended certification obtained by Metal Mask Dept.

Jan.

27, 2010 Extended certification obtained by Tool Department.

Jun. 18, 2010 Vietnam Plant obtained certification.
ISO9001 (Japan)

ISO/TS16949

TS16949 (Guangzhou Plant, China)* The plants in Japan obtained certification from Japan Electrical Safety & Environment
Technology Laboratories (JET). The plants in China obtained certification from TÜV Rheinland.

Apr. 19, 2004
March 22, 2011

Guangzhou Plant in China obtained certification.
Wuhan Plant in China obtained certification.

Initiatives for Quality Assurance

Examples of our activities

At Meiko, we have defined a Quality Policy aimed at achieving one of our Business Principles: We will provide ourcustomers with outstanding value and services and make a contribution to society. We improve the reliability ofour products to guarantee the highest possible levels of customer satisfaction and contribute to society.

Design Review (DR) meeting using a video conference call system

Ensuring quality that meets customer
expectations and instills confidence
Quality demanded by customers
Expectations
and confidence

Ensuring quality thatt
meets customer needs

DR meeting (video conference call)Sociality Report

Q ual i ttyy Po
Poll i c y

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

Use of four-terminal electric checkers
Meiko Quality Manual
Mei
Meiko Technology and Control Standard
Meik
Meiko Operation Standard and Specifications
Operating instructions, drawings, and instructions forOperat

It is difficult to ensure the connection reliability of HDI PWBs with the twoterminal electric checkers we used previously. Through introduction of fourterminal electric checkers, we now utilize a method that detects changes in
conductor resistance to supply highly-reliable products.
Four-terminal electric checker

Quality record
QualitPursue cause of defects by introducing FT-IR and identifying foreign matter

Quality assurance by the Meiko Group
Improvement of customer
satisfaction

The cause of defects is investigated by introducing FT-IR and analyzing foreign
matter. Through in-house analysis, the cause can be determined and measures
to deal with the problem can be devised more quickly.
*Fourier Transform Infrared Spectroscopy (FT-IR) is a method of acquiring information about molecular
structure by measuring infrared ray absorption through vibration of molecules of a compound.
FT-IR

Our approach to quality assurance aandd organizational efforts to ensure high quality
In the Quality Policy, we have stipulated that we need to continuously improve the quality of ouroperations as well as our products by ensuring that the management cycle operates in every process of
our operations. The management cycle targets continuous innovations in technologies and operations.
In terms of quality assurance, we assure the quality of all products within the plant where they are
manufactured. In the middle of globalization, we intend to assure quality as promptly as possible bystrengthening our cooperation with our plants and sales offices.

Initiatives for Cutting in-process defect ratio in half and Emphasis on job site
and Shift from quantity to quality
Measures for cutting the in-process defect ratio in half and shift emphasis from quantity to quality
In Fiscal 2011, we will expand our business activities with the emphasis on establishing quality under the threemanagement policies; “Cutting in-process defect ratio in half”, “Emphasis on job site”, and “Shift from quantity to quality”.

17

CSR Report 2011

5 principles sheet training for manufacturing andmanagement department staff at plants in China
A workshop was held for manufacturing and management department staff at
plants in China to enhance the ability to solve problems by 5-principles sheet and“why-why” analysis. By repeatedly asking why, the underlying cause can be learned
from direct cause and consequently recurrence of defects can be prevented.
Guangzhou chief training

Foreign matter elimination activities at plants in China (plant cleaning)
The most significant factor behind PWB problems is “foreign matter.” In
addition to countermeasures against foreign matter by voluntary improvementof the manufacturing department, our manufacturing department and the
management department work together to promote cleaner plants and raise
employees’ awareness of foreign matter by taking part in the plant-wide
cleaning before starting the afternoon work.

Plant-wide cleaning in the office

CSR Report 2011 18

Research and Development

Improvement and Expansion of IR Activities

The evolution of electronics means the evolution of PWBs. By making use of our laser processing
technologies and B2it technology* in our PWB business, we at Meiko have created a number ofstate-of-the-art technologies, including the any-layer PWB, flexi PWB, flex-rigid PWB, package
module PWB, and PWB-incorporating components.
*B2it: Buried Bump Interconnection Technology

One of the pledges made in our Code of Conduct is: “We will ensure that our corporate activities andmanagement practices are sound and transparent, and we will continue to be a trustworthy company
to our shareholders and investors to generate corporate value.” Based on this pledge, we are striving
to maximize our corporate value by engaging in sound, fair corporate activities while complying withlaws and ordinances.

Activities in Fiscal 2010

Timely and adequate disclosure of information

In Fiscal 2010, our research and development activities were conducted by the following: the Meiko Researchand Development Center, which is responsible for the development of elements for state-of-the-art
technologies; the Product Development Dept., which is responsible for developing products andmanufacturing processes two or three years in advance, including any-layer PWBs and embedded PWBs; andengineers from individual plants who commercialize those products using the developed technologies.
The following sections introduce our research and development efforts with regard to advanced PWBs.

In accordance with the timely disclosure regulations, we adequately disclose key information considered toinfluence the investment decisions of our shareholders and investors. We also disclose other key information
via prompt, adequate, and fair means to ensure the transparency of our management practices.

1

We ensure that our financial statements and other data are
published on our website at the same time as they aredisclosed, so that the information is disclosed in a fair, prompt
manner. For institutional investors and securities analysts, wehold 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 generalinvestors on our website so they can use them to improve theirunderstanding of Meiko.

Development of Any-Layer PWBs

2

10-layer Any-Layer PWBs
Φ50μm

6-layer Any-Layer PWBs

L／S=75／75μm

L／S=50／50μm

L／S=40／40μm

L／S=30／30μm

L／S=25／25μm

L／S=20／20μm

Publication of the MEIKO REPORT
Smaller diameter of laser via Ultra fine wiring

Development of Embedded PWBs

Embedded PWB components have passive components (chip capacitors or chip
resisters, etc.) embedded in them. We developed these PWBs in response to theincreasing density and higher performance of PWBs. The use of these PWBs has
contributed to three-dimensional mounting and consequently, smaller equipment
dimensions. It has also enabled the shortest possible wiring distance between thesurface-mount IC and embedded PWBs passive components, thereby improving
the electric properties. Since starting mass production in 2009, we have striven toachieve thinner circuit boards capable of higher density.
In 2010, concerning layer-to-layer connection of embedded components, inaddition to conventional connection by solder, we are developing a connection
process using laser via and plating. This contributes to enhanced heat resistanceand higher mounting density thanks to narrower component pitch.

2009
2010
2011

Mass production commenced atplants in Japan
Plating connection processdevelopment promotion
Development of embedded active
devices PWBMEIKO REPORT

Discussion sessions with our shareholders
Solder connection
embedded PWBs

Plate connection
embedded PWBs

Plans and objectives of activities for Fiscal 2011

Level we aim to reach within three to five years

1. Development of embedded active devices PWB
2. Development of PWBs for 0.4mm-pitch CSP Wiring
3. Carrying out new development projects

1. Mass production of products under development (thin, embedded HDIs,
PWBs for 0.4mm-pitch CSP Wiring, etc.) (within one to two years)
2. Furthering the development projects of the Research and Development Center

CSR Report 2011

We publish and send the MEIKO REPORT to our shareholders at
the halfway point and at the end of each fiscal year to improvetheir understanding of the Meiko Group as a whole. The reportprovides business reporting, topics, an overview of ourperformance and financial statements, and corporate data forthe relevant period in an easy-to-understand format. The
MEIKO REPORT for Fiscal 2010 included dividend information
and an interview article in which our president provided amessage and briefings on Meiko’s business.

Mass production of product Development product3. Studying, selecting, and undertaking new development projects in line with the road map

19

Results briefings

Sociality Report

Smartphones and mobile phones, which have thestrictest requirements for thinner profile andhigher function, use Any-Layer PWBs that realize
the most advanced high-density wiring.
Any-Layer PWBs permit unlimited connections
between layers. They combine laser technologies
and filled plating technology, which permit ultrafine processing and allow free connection between
all layers by via filling. We provide many customers,
primarily overseas businesses, with Any-Layer PWBs.
We are currently working on higher density byfiner wiring and smaller diameter of laser via.

Fair, prompt disclosure of information on our website

We hold a "Discussion Session with Shareholders" after theshareholder meeting every year. In this session, our president
reports on our business activities during the past year andexplains our business strategies for the future. This is followed
by informal discussions and exchanges of opinions between our
executives and shareholders.

Discussion session with shareholders

CSR Report 2011 20

Creation of a Comfortable Working Environment

Educational and training programs for Fiscal 2011
Departmental training
Job-class-specific training

GlobalEngineering

Selfdevelopment
Correspondence course program

On-the-job
training

Japanese language training for overseas employees

TOEIC registration/examination program

Foreign language training (English, Chinese, and Vietnamese)

Specialized training

Program to support qualification acquisition

Safety and health training

Program to support qualification acquisition

Generalemployee

Sales skill training

Assistant manager training
Mid-career employee training
Follow-up training
New recruit training

Program to support qualification acquisition

Supervisory employee

Safety and health training

Managerial
employee

Program to support qualification acquisition

Department head training
Follow-up training for managerial workers
Training for new managerial workers

Training for mid-career employees

Department head

OJT

Manufacturing Clerical work
Plant manager and supervisor training

Executive training

FMEA and quality/statistics training

Executive

Sales

Respect for diversity
At Meiko, we respect human rights and strive to recruit, evaluate, and treat our employees without
discrimination on the basis of race, creed, religion, nationality, age, gender, disability, and other attributes, sothat diverse employees are able to exercise their abilities. We also transfer personnel and exchange employees
between Meiko Group companies, both in Japan and overseas, to develop global human resources andstimulate the further revitalization of our human resources.

Employee safety and health initiatives

Employment of persons with disabilities

Safety and health patrol by Safety and Health Committee members

Since Fiscal 1991, Meiko Electronics Co., Ltd.
(excluding its Group companies) has
continued to achieve the legally required
number of employees with disabilities inaccordance with the Act on Encouraging the
Employment of Persons with Disabilities up
until Fiscal 2009. In Fiscal 2010 and Fiscal
2011, however, we were not able to meet thelegal requirement, partly because the overall
number of employees increased. We will
strive to meet it again in Fiscal 2012.

Changes in the number of our employees with disabilities and the number required by law(Fiscal 2005 – 2011)
Legal requirement

Total Employees (Persons)
1,000
750
500

565
11

578
11

10

10

663
12

877
16
15

869
15
15

Employees (Persons)

894
16

926
16

15

15

20
15
10

11

250

5

0

0
2005

2006

2007

2008

2009

2010

2011

(Note) Legally required number of employees with disabilities = Number of permanent employees
× Legal rate of employment (rounded down to the nearest whole number)

Employment and exchanges of global human resources
Firefighting training

Currently, approximately 40 employees from overseas countries, including China, are working at Meiko’s
business establishments in Japan, while approximately 100 Japanese employees are working overseas. These
numbers have been increasing every year. In addition, up until Fiscal 2010, a total of 139 persons hadcompleted the language and skill training in Japan intended for future executives of our overseas subsidiaries,
which has been offered every year since Fiscal 2003.

Educational programs
At Meiko, we provide job-class-specific training to new recruits, midcareer employees, and executives. We also hold departmental training
specific to functions and job categories. These training programs are
aimed at extracting the potential ability of individual employees,
strengthening their ability to work in teams, and improving theiroverall abilities that are universal to all organizations. In addition, weoffer qualification programs and provide financial assistance withcorrespondence courses to help our employees with their selfdevelopment and encourage them to obtain technical qualifications.
We are also developing employees who can work globally by
improving and expanding foreign language training programs fordomestic workers and the training of overseas workers in Japan.

21

CSR Report 2011

From a Global Employee

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

I

Training session for new recruits (manufacturing simulation training)

completed a master’s degree program at a university in Japan in 2005 and joined Meikoas a new graduate. I am now assigned to the Guangzhou Plant as a member of theInternation al Sales Department, in charge of customers outside Japan. The level ofcustomer demand regarding the products is quite high, but I am striving to provide theoptimum value and service in my sales activities.
As our production and sales are globalized, Meiko has been recruiting a large number of
non-Japanese employees like me, and we are assigned to important jobs, regardless of ournationality and age.
At Meiko, our objective is to be the world leader in the PWB field. I would like to contributeto achieving this ambitious goal as much as possible through my daily sales activities.

CSR Report 2011 22

Sociality Report

The objectives of these initiatives are to eliminate dangers improve theenvironment in all workplaces, and to encourage the good health of all
employees.
We have established a PDCA cycle, in which problems found during safety
and health patrols by Safety and Health Committee members are deliberated
by the Committee, corrective measures are introduced to workplaces, andthe results of the measures are validated. These efforts are aimed at creating
better working environments, not to mention preventing work accidents.
To ensure that problems are found efficiently, we have arranged for our
workplaces to be patrolled by industrial physicians, industrial health consultants,
and other experts. In addition, our Safety and Health Committee members
undertake patrols of the plants. What is more, we estimate risks through risk
assessments, based upon which we implement measures to prevent work
accidents and improve the level of our safety and health management.
We also strive to raise each employee’s awareness of safety and health. Our
measures to this end include accident-free record activities, training inpredicting dangers, and continued safety and health training for each job class.
In recent years, damage to health caused by long working hours andmental health problems have been social issues. At Meiko, we encourage
the good health of all employees by providing training on mental healthproblems to managerial workers, having those in charge of occupational
health conduct interviews with workers, offering counseling provided bymental healthcare professionals, and implementing a variety of othermeasures through cooperation between employers and workers.

Rank

Employeeevaluation
training

At Meiko, we have accelerated the progress of our globalization in recent years. We already have plants inGuangzhou and Wuhan in China, and we have also newly set up a plant in Vietnam. We have also opened
sales offices in Europe and the United States in addition to Asia.
A large number of local people work at these overseas plants and offices.
In addition, numerous Japanese employees are dispatched overseas, while dozens of workers fromoverseas, including China, work at our Headquarters and plants in Japan.
This means that employees of different nationalities and from diverse cultural backgrounds are involvedin the business activities of Meiko.
In line with the concept that “the greatest asset of a company is its human resources,” we focus on thecreation of a comfortable working environment that is safe, secure, hygienic for all our employees,
respects their diversity, and allows them to develop.

Social Contribution

Action1

At Meiko, we encourage social contributions by our Headquarters and group companies to build close
relationships with local communities. We will continue to ensure harmony between all our business bases,
including the Headquarters and local communities, and undertake activities for mutual development.
Headquarters and Kanagawa

Assistance with the Ayase Commerce and Industry Fair
organized by the Ayase City Commerce and Industry
Association
Assistance with the Ayase Iki Iki Matsuri Festivalorganized 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 BaseballFederation
Assistance with Abilympics Kanagawa 2010 organizedby the Commerce, Industry, and Labor Bureau of
Kanagawa Prefecture
Fukushima

Plant Tour for elementary school children

On November 16, 2010, we organized a plant tour for 77 third-gradestudents from Ayase City Kitanodai Elementary School, a local
elementary school in the area where our Headquarters and Kanagawa
Plant are located. The children were able to handle real PWBs, andreceived explanations about their functions and use. They later
observed the manufacturing processes at the plant. The children’scomments included, “We gained a good understanding of the fact thatthese PWBs are used in electrical appliances that we are familiar with.”

Action2

Kitanodai Elementary School plant tour

Blood donation activities

Meiko is actively involved in blood donation activities at bases inJapan and overseas. The blood donation activity was conducted at the
Yamagata Plant on February 4, 2010 in keeping with the annual
tradition that has continued for more than 10 years now. There havebeen comments from the staff about wanting to do what they can aspart of their contribution to society.
Yamagata Plant blood donation activity

Assistance with Hironomachi Summer Festival 2010
Miyagi

Continued relief activities for victims of the
Sichuan Earthquake in China
Participation in blood donation activities

Assistance with fireworks display in the Ishinomaki
Kawabiraki Festival
Clean-up around North Kitakami Canal levees

Vietnam

Yamagata

Cooperation in refurbishment of local
soccer stadium

Acceptance of local junior high school students to
help them learn through work experience
Provision of company tour to local high school
students
Internship program for local high school students

Planting activities

Activities in local communities

We assisted with the planting activities organized
by Ayase City, Kanagawa Prefecture, where our
Headquarters is located. In addition, our employees
from the Headquarters and the Kanagawa Plant
planted flowers in the green belt on the walkway infront of our main gate as part of our own activities
for beautifying the local area. We planted salvias,
begonias, and marigolds in the spring and pansies,
violas, and tulips in the autumn. The pedestrians
enjoyed the beautiful flowers as they passed down
the walkway. We will continue to plant flowers
twice every year to help beautify the local area.

At Meiko, we deepen exchanges with communities where our business bases are located by actively
participating in environmental beautification activities and other events organized by the local
governments in the various areas. We will continue to fulfill our responsibility as a good corporate
citizen by encouraging social contribution activities in each local community.

Action4

From the Local Community

M

Mr. Torao Ichinosawa, Chairman of the Ayase City Ogami Area Council of Social Welfare

eiko, a company born and raised in the area, takes care of the locals. We are proud
to have such a wonderful company in Ogami, Ayase City.
The Ayase City Ogami Area Council of Social Welfare is a volunteer group consisting of
230 local resident applicants. The main activities of the group are holding social gatherings
and taking care of the elderly and those who need assistance, watching elementary
schools student go to school, and anti-crime patrol for local safety and security.
It is because of Meiko's generous support that we have been able to willingly conduct
such wide-ranging activities. We shall continue to play our role as a volunteer activities
organization needed by the local community. We pray that Meiko will continue to growand prosper as a local symbol.

23

Action3

CSR Report 2011

Sociality Report

Guangzhou

Kanagawa area planting activities

Activities to beautify the local areas

Each Meiko plant undertakes activities tobeautify the local area and participates in theenvironment beautification activities organizedby the local government.
We clean up the area surrounding the
Headquarters and the Kanagawa Plant every
year. In Fiscal 2010, a large number of workers
participated voluntarily in the activities andpicked up garbage in a nearby park and the areaaround our premises. In addition, employees ofour other plants in Japan have also actively
participated in beautification activities organizedby the industrial parks.
We will continue to protect local environments
through our cleanup activities.

Beautification activities at the
Headquarters and the Kanagawa Plant

Beautification activities at the Miyagi Plant

CSR Report 2011 24

Supply ChainAt Meiko, we have formulated a Basic Procurement Policy to serve as the guidelines for ensuring that ourbusiness partners understand our CSR Policy, Environmental Policy, and so on. In accordance with thisPolicy, we strengthen our measures concerning environmental protection and response to environmental
issues, and further our CSR activities by cooperating with other companies.
Currently, a company is required to have, as its basic framework, a consistent supply chain covering theentire process from material procurement from business partners through to production, distribution, andsales of products. In line with this trend, we at Meiko believe that the most important aspect of our
procurement activities is to establish win-win relationships and relationships of mutual trust with ourbusiness partners We ensure cooperation not only between the production and sales bases in Japan but
also with overseas bases, and select business partners through a comprehensive assessment of quality,
delivery punctuality, price, and management, under the basic principles of (1) understanding our Basic
Procurement Policy, (2) compliance with laws, ordinances, and social norms, (3) environmental protectionand (4) exclusion of antisocial forces, along with consideration of back-up system in case of an accident
and a disaster. In this way, we are strongly emphasizing CSR practices within our supply chain.

Measures concerning purchase and procurement
Internal control and compliance
At Meiko, we undertake smooth operations with our business partners by complying with the following rules onpurchasing and procurement. We carry out 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.

1. Fair, appropriate operations with business partners shall be undertaken through compliance with laws andordinances concerning purchase and procurement activities.
2. Business partners’ information that we obtain through purchase and procurement activities shall be kept confidential, andthe information security system for preventing the leakage of confidential and personal information shall be strengthened.
3. Entertainment and gifts for business partners shall be permitted to the extent that would normally be consideredreasonable, but shall be prohibited if such acts result in personal profits.
4. Exclusion of antisocial forces shall be exercised.

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

Basic Procurement Policy

In accordance with the "standards concerning the environment," we encourage environmentally-friendly
purchase and procurement activities together with our business partners.

1. We confirm laws and regulations (RoHS Directive, ELV Directive, and REACH Regulations) and the content of environmentally hazardous
substances to encourage the procurement of compliant products and maintain and improve the environmental quality of our products.
(1) RoHS Directive(2) ELV Directive(3) REACH Regulations(4) JIG (1-R)

Request for our business partners
In accordance with the measures for the environment included in our Basic Procurement Policy, we are callingfor more than 300 business partners to understand and practice matters concerning the four points below. In
addition to control of greenhouse gas emissions, waste reduction, and management of specified chemical
substances, which we naturally undertake in our internal production activities, we also implement a variety ofmeasures to ensure environmentally-friendly procurement. We ask our business partners to implement andrecommend green procurement, and also request that distribution and sales activities be undertaken in anenvironmentally friendly manner.
In addition, from Fiscal 2009 onward, we have been promoting to reduce the environmental burden of
distribution and packaging with the results for Fiscal 2008 as the benchmark.
Requests for our business partners(1) Focus on green procurement, compliance with the green procurement standard, provision of information concerning"eco products"(2) No idling(3) Waste reduction(4) Cooperation with contact in case of an emergency

25

CSR Report 2011

: EU restriction on the use of certain hazardous substances in electrical and electronic equipment: A directive adopted by the EU to reduce the environmental burdens of end-of-life vehicles: EU law for protecting people’s health and the environment: Legally controlled substances specified in the guidelines concerning the disclosure of information
regarding chemical substances contained in electrical and electronic equipment

Sociality Report

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)

Environmental measures (green procurement)(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 havesigned these documents with approximately 52 companies, including 2 companies added in Fiscal 2010.
3. We strive to reduce the discharge of industrial waste and encourage the use of this waste as a valuable resourceby recycling it or using it in other ways together with our business partners.

From Our Business Partners

Mr. Hiroshi Takada, Copper Fail Sales Group, EFE Sales dept, FUKUDA METAL FOIL & POWDER CO., LTD.

ounded in 1700, FUKUDA METAL FOIL & POWDER CO., LTD. has over 310 years of history.
As a comprehensive manufacturer of nonferrous metal foil and powder, we provide safe,
high quality products to various fields of industry including the PWB industry. We acquired
environmental ISO14001 in September 2000, and announced that we would "pursue businessactivities that protect the environment" as the basic environmental policy in December of thatyear, and have since carried out environmentally friendly business activities.
We have had a long relationship of over 20 years with Meiko, the leading company in
the PWB industry. Meiko gives "strengthened environmental measures (chemical substances/green procurement) " as one ofits basic procurement policies, and we focus on it especially.
We strives to contribute to preservation of the environment by providing products that use environmentally friendly
materials , such as the electrolytic foil that Meiko uses.
We will devote ourselves to continue to become a better supplier for your company with a high sense of awareness ofenvironmental conservation/social contribution, and we hope to continue our partnership for many years to come.

F

CSR Report 2011 26

Environmental Report

System for Environmental Management
To implement our Basic Environmental Policy, we have established an ISO environmental management
system, and have appointed a person responsible for controlling the environmental management system(EMS) at each plant in Japan and overseas. We have also launched a comprehensive project named the“Eco Project,” in which we undertake activities to reduce CO 2 emissions and achieve zero emissions.

At Meiko, we believe that minimizing
the environmental burdens ofour business activities is our mission
and our responsibility as a company
helping to achieve a sustainable society.

System for furthering Environmental Management
Board of Directors

Eco Project

President & CEO

CO2 Reduction Project

Project for reducing CO2 emissions from plants

Zero Emission Project

Project for achieving zero emissions from plants

General Manager Responsible for EMS (Japan)

Prev
eventtingglobbalwarminng

General Manager Responsible for EMS (Guangzhou)

Internal environmental auditor from the ISO Environment GroupInternal environmental auditor from the ISO Promotion OfficeInternal environmental auditor from the ISO Promotion Office

Person responsible for EMS at Headquarters District

Guangzhou Plant in China

Wuhan Plant in China

Person responsible for EMS at Kanagawa District

Basic Environmental Policy

Person responsible for EMS at Fukushima Plant
Person responsible for EMS at Yamagata Plant“Meiko recognizes that protecting
the global environment and committing toclean air and water are critical responsibilities
that we have for the generations that come after us.
We use resources effectively and operate in a waythat is compatible with our living environment.”

Person responsible for EMS at Miyagi Plant

Re ng
Reusinnatu
uralresourcees

Pre enntingg
Prevpolllluttio
poionn off thetecosysystetemMeiko’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 prevention of global warming, cyclical use of resources and prevention ofcontaminating the ecosystem.
In accordance with our basic environmental policy, we fully comprehend the impact our businessactivities have on the environment. We make every effort to prevent environmental pollution and reduce
our environmental footprint through the following measures:

CSR Report 2011

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

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

Beginning in Fiscal 2010, we introduced TPM and IE activities as part of production reform
at our plants in Japan and overseas. Through these activities, we have improved theoperational efficiency of facilities and reduce the amount of raw material consumption,
mainly at production sites, thereby achieving energy savings and preservation of resources.
While our domestic operations have been affected by the Great East Japan Earthquakethat occurred on March 11, we will carry out further production reform and contributeto environmental management by working on prevention of global warming, cyclicaluse of resources, and prevention of environmental pollution in Fiscal 2011.

Acquisition of ISO14001 certification
We view ISO14001 as an important standard for environmental management, began to take action
toward obtaining certification in Fiscal 2000, and have since continued these initiatives at our plants inJapan and overseas.
<Our acquisition of ISO14001 certification>
Mar. 27, 2001
Sept. 25, 2001
Apr. 17, 2003
Apr. 30, 2003
Apr. 22, 2005
Apr. 22, 2005
Apr. 28, 2006
Apr. 28, 2006
Feb. 20, 2007
Mar. 26, 2009

President & CEO Yuichiro NayaISO14001 Certificate (Japan)

27

Management concerning ISO 14001
Furthering environmental improvement

General Manager Responsible for EMS Haruyuki Naya Director, Managing Executive Officer

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 will properly manage chemical substances in products so that the product does not contain harmful chemicals.
4. We properly manage chemical substances contained in our products and make sure our products do not contain toxic chemical substances.
5. We properly manage chemical substances in the production process to limit their usage and reduce their environmental impact.
6. We observe all laws, regulations, ordinances, and other requirements concerning the environment.
7. We set environmental goals and objectives, conduct environmental conservation activities, and strive to improve these activities.
8. We provide training and instruction to all our employees with the aim of instilling a strong awareness of environmental
conservation activities in them.
9. We are documenting this environmental policy and distributing it to all our employees, and are also making it available to the public.
Revised (No. 6) on December 1, 2010
Established on March 6, 2000

Safe Environment Management OfficeEnvironmental Report

En v i r on me ntal Ac ti o n G ui d el i nes

General Manager Responsible for EMS (Wuhan)

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.
Extended certification obtained by Miyagi Plant
Extended certification obtained by Metal Mask Dept.
Wuhan Plant in China obtained certification
Extended certification obtained by Meiko Research andDevelopment Center, Yamato Technology Center, and Tool
Department

ISO14001 Certificate (Guangzhou, China)

CSR Report 2011 28

Prevention of Global Warming

System for complying with environmental laws and ordinances
Environmental laws and ordinances have been amended due to increasing awareness of environmental
impact. We believe that ensuring our compliance with all the amended laws and ordinances of individual
regions will lead to our contributing to environmental protection in each local community.
In accordance with ISO14001, we identify the laws and ordinances of individual regions that are
related to our business activities, and watch for any amendments to ensure full compliance.

Environmental laws and ordinances- Basic Act on Establishing a Sound Material-Cycle Society- Act on Improvement of Pollution Prevention Systems
in Specified Factories

Basic acts

Ozone layer
protection- Act on the Protection of the Ozone Layer through theControl of Specified Substances and Other Measures- Act on Ensuring the Implementation of Recovery and
Destruction of Fluorocarbons concerning Designated Products

Pollution control - 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

Energy conservation - Act on the Rational Use of Energy (Energy Saving Act)
Ordinances andrelated regulations

Prevention of global warming - Act on Promotion of Global Warming Countermeasures
Waste regulation - Waste Management and Public Cleansing Act- Fukushima Prefecture Basic Environmental Ordinance- Fukushima Prefecture Basic Environmental Plan
- Fukushima Prefectural Ordinance on Conservation of Living Environment- Act on the Promotion of Effective Utilization of Resources (Recycling Law)
- Act on Recycling of Specified Kinds of Home Appliances (HomeAppliance Recycling Act)- Act on the Evaluation of Chemical Substances and Regulation of
Their Manufacture, (Chemical Substances Control Law)

- 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

Toxic substancecontrol- Kanagawa Prefecture Basic Environmental Ordinance- Kanagawa Prefecture Basic Environmental Plan
- Kanagawa Prefectural Ordinance on Conservation of Living Environment- Ayase City Ordinance on Sewerage- Miyagi Prefecture Basic Environmental Ordinance- Miyagi Prefecture Basic Environmental Plan
- Miyagi Prefecture Pollution Prevention Ordinance(water, air, noise, vibration, and offensive odors)

Promotion of environmental targets plan

Initiatives concerning electricity
The greatest source of CO2 emissions at Meiko is the use ofelectricity. While the result for Fiscal 2010 showed anincrease in the total amount of energy used due to anincrease in production volume following thecommencement of operation of the Wuhan No. 2 Plant, we
also succeeded in reducing the rate of consumption per
production volume by improved energy saving.

Initiatives concerning heavy oil
We completed switching at the Guangzhou Plant over tonatural gas and were able to dramatically decrease thetotal amount of heavy oil consumption for Fiscal 2010,
but were unable to reduce the rate of consumption per
production volume for our plants in Japan, resulting in an
overall increase in comparison with Fiscal 2009. We will
reduce the use of heavy oil by improving the fuel usage
method, etc.

Initiatives concerning natural gas<Goals and results of initiatives we took in Fiscal 2010>
Fiscal 2010 results - status of achievement of environmental targets and initiatives taken
Target: 5% reduction from Fiscal 2008 level
Status ofachievement
Electricity
Heavy oil
Natural gas
Gasoline
Water
Photocopying
paper
Plastic waste
Waste acid
Waste alkali
SludgeDown 0.33%
Up 7.3%
Down 13.2%
Down 37.5%
Down 27.5%

Initiatives taken at each plant for achieving environmental targets
Kanagawa Fukushima××××

Yamagata

Miyagi
×
×

×

Wuhan

×

×
×

×

×

×

×
×
×

×

Note 1: The results above show the extent to which we have achieved the targets. They are not the aggregated values of all the plants. The results shown at left are thevalues per square meter of production in comparison with the Fiscal 2008 results, which are the benchmark of the environmental targets we set according to athree-year plan that runs from Fiscal 2009 to 2011.

29

CSR Report 2011

Total amount of emissions(1,000 tons of CO2)

Rate of emissions per production volume(based on the figure for Fiscal 2008 set to 100)

400

120

300

90

200

60

100

30

0

08

09

10

0

Changes in our electricity consumption
Total consumption(Million kWh)Rate of consumption per production volume(based on the figure for Fiscal 2008 set to 100)

400

120

300

90

200

60

100

30
0

0
08

09

10

Changes in our heavy oil consumption
Total consumption

Rate of consumption per production volume(1,000ℓ)(based on the figure for Fiscal 2008 set to 100)

10,000

120

7,500

90

5,000

60

2,500

30

0

0
08

09

10

Changes in our natural gas consumption
Total consumption

Rate of consumption per production volume(1,000m2)(based on the figure for Fiscal 2008 set to 100)

10,000

120

7,500

90

5,000

60

2,500

30
0

0
08

09

10

Changes in our gasoline consumption
Total consumption

Rate of consumption per production volume(1,000ℓ)(based on the figure for Fiscal 2008 set to 100)

300

120

×

Down 19.7%
Up 2.6%Up 14.9%
Down 32.5%
Up 1.3%

Guangzhou×

We use natural gas as boiler fuel at the Guangzhou andthe Wuhan Plants in China. While the result for Fiscal
2010 included a dramatic increase in that total amountof energy consumption due to switching our Guangzhou
Plant’s boiler fuel over to natural gas, we were able todecrease the rate of consumption per production volume
by efficient facility operations.

Changes in the amount of our CO2 emissions

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

90
200
60
100
30
0

0
08

09

10

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

CSR Report 2011 30

Environmental Report

Meiko conducted an assessment of the environmental impact of our corporate activities. As a result, we foundthat the types of energy that have a significant impact on the environment include electricity, heavy oil, gas, andgasoline. Also closely related to environmental impact are resources such as raw materials, water, and paper, whichshould be saved, and waste, including plastic waste, sludge, waste acid, and waste alkali, which should be reduced.
Given these results, we have been taking actions under a new medium-term plan for Fiscal 2009 to 2011,
with Fiscal 2008 being the benchmark year.

Meiko views the issue of greenhouse gas as a significant threat
to our precious earth. As a result, since Fiscal 2008, we havebeen undertaking initiatives focused on the reduction of CO 2
emissions to respond to the revised Energy Saving Act and the
Act on Promotion of Global Warming Countermeasures. The total
amount of energy consumption increased in conjunction with anincrease in production volume in Fiscal 2010, however, we
succeeded in reducing the rate of CO2 emission per production
volume in comparison with the previous year through initiatives
to improve energy saving at the various plants.
We will continue reducing CO2 emissions with further
initiatives, particularly those involving efficient operationof facilities.

Cyclical Use of Resources

Prevention of contamination in ecosystem
Chemical substances contained in products

Water consumption
A large amount of water is used in the manufacture of
PWBs for cleaning. We have reduced the amount of waterused by managing the amount used at each facility andusing reverse osmosis (RO) water. In Fiscal 2010, from
Fiscal 2009 onward, we carried on our efforts to use theminimum amount of water required to maintain productquality in each process and to use discharged water
through ion exchanging. These efforts have proveneffective in terms of achieving reductions.
*RO water refers to water purified using reverse osmosis. It is used for cleaning the PWBs.

Paper consumption
We have been making comprehensive efforts by employing
electronic media for all company data, eliminating
unnecessary copying, etc., to help protect forest resources.

Changes in our water consumption
Total consumption

Rate of consumption per production volume

1,000m3(converted with the figure for fiscal 2008 set to 100)

10,000

120

7,500

90

5,000

60

2,500

30

0

08

09

10

0

12,000120(Note) At Meiko, our initiatives for ensuring the superior environmental quality of our products have beenhighly rated by our customers. As a result, we have been recognized as a Green Partner by many of ourcustomers, who have issued us with Green Certificates.

9,000

90

*

6,000

60

3,000

30

Changes in our photocopying paper consumption
Total consumption
1,000 sheets

Rate of consumption per production volume(converted with the figure for fiscal 2008 set to 100)

*
0

08

09

10

0

Prohibited chemical substances (substances the manufacturing and use of which isprohibited by the laws of Japan and other countries)

We have been reducing waste based on the 3R strategy (reuse, reduce, and recycle). In Fiscal 2010, from FY2009 onward, efforts were actively made to reduce the amount of waste liquid disposed of by outsidecontractors by internally treating it and recycling waste into valuable resources, both of which have shown
positive results. The recycling rate of waste – the percentage of waste that was used for purposes other thanlandfill - exceeded 98% at our plants in Japan in Fiscal 2010.
*"Recycling" above includes thermal recycling.
*The recycling rates at our plants in China (Guangzhou and Wuhan) are excluded because they are not fully known.

Internal treatment of waste alkali liquid (Kanagawa Plant)
We used to dispose of waste alkali liquid, which is
generated in the production process, by outsourcing fortreatment as waste liquid.
We achieved an internal treatment of waste alkali liquid
by installing waste alkali liquid treatment device in July
2010, thereby enabling a dramatic reduction.
Waste alkali liquid treatment device at the Kanagawa Plant

Recycling soft etching waste liquid into valuable resources
We used to dispose of soft etching waste liquid, which is
generated in the production process, as waste liquid.
By working together with partner companies, weestablished a method for extracting copper contained insoft etching waste liquid into electrodes, thus enabling us
to recycle it into valuable resources.
Soft etching waste liquid treatment device

We have specified the following 25 substances as prohibited chemical substances and request that ourbusiness partners submit a guarantee of the non-use of these substances and an analysis report when we
procure materials from them.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.

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

Environmental Report

Examples of our initiatives for reducing and recycling waste

CSR Report 2011*

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 of six substances - lead, cadmium, mercury, hexavalent chromium, polybrominated biphenyl (PBB), and polybrominateddiphenyl ether (PBDE) - in electrical and electronic equipment released in EU countries from July 1, 2006 onward.
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).
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.

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

Reduction and recycling of waste

31

In accordance with our Environmental Action Guidelines, we strictly manage our production process to ensurethat our products do not contain hazardous substances prohibited by the RoHS Directive, ELV Directive, REACH
Regulations, and other laws and regulations. Specifically, we stipulate prohibited substances ourselves in our
chemical substance control rules, and request that our business partners submit guarantees of non-use andanalysis reports. We respond to our customers’ requests for research by using tables of ingredients submitted byour business partners so that our customers can use our products with a sense of security.

CSR Report 2011 32

Measures for Reducing Environmental Burdens

Table showing environmental burdens

Meiko is aware of the significance of the impact of its plant operations on the local environment andbelieve it has a duty to reduce these burdens.
Specifically, we comply strictly with laws and ordinances for preventing pollution and the standards
agreed on with local communities. We are also striving to reduce the total emissions, water consumption,and paper consumption confirmed in accordance with the PRTR Act.

At Meiko, we take measures to gain an understanding of the full scope of our environmental burdens. The
table below shows our environmental burdens for Fiscal 2010. We will aim to achieve greater by accurately
classifying the inputs into energy, water, materials, and chemical agents, and the outputs into atmosphericrelease, water discharge, waste and resources, and recycling.

Environmental burdens of our business activities

Activities for reducing environmentally hazardous emissions
We control the quality of the water we discharge and the state of the gases we emit into the atmosphereby measuring them on a regular basis to help maintain the local environment. The table below shows thelevels of the substances we have emitted from our plants, all of which are below the standard.

INPUT
Energy input

Measured values for discharged water quality and atmospheric measurements
Water quality
Plant namepH
Measurement
unit

Kanagawa
Plant

Actual valueStandard
value

8.3

Fukushima Actual value
7.9
Plant
Standard
5.8 8.6
value
Measurement
unit
Yamagata
Plant

Actual valueStandard
value

7.15
5.8 8.6

Standardvalue
Measurement
unit
Guangzhou Actual value
Plant
Standard
value

7.3

Standard
value

SS

mg/L

mg/L

mg/L

16.0

22.0

Equipment

Substance
Measurement
unit

g/m3N

Steam boiler Actual value

0.0036v / v ppm
70

Natural gas

(km3)

9,357

Gasoline

(kℓ)

202

Kerosene

(kℓ)

14

mg/L

Measurement
unit

g/m3N

v / v ppm

18.0

16.0

2.8

Actual value

25(20)

25(20)

70(50)

Standard
value

0.050
0.3
Air Pollution
Control Act

88
180
Air Pollution
Control Act

mg/L

mg/L

mg/L

Measurement
unit

g/m3N

v / v ppm

9.38

12.7

2.2

Actual value

0.004
0.3
Air Pollution
Control Act

77
180
Air Pollution
Control Act

CO2 emissions

(kt)

353

NOX emissions

(t)

38

Soot and dust

(t)

5.8

PRTR substances(t)5

25(20)

160(120)

Steam boiler

Steam boilerStandardvalue

60(50)

mg/L

mg/L

mg/L

110.0

86.0

17.0

boilerMeasurement
unit

g/m N

v / v ppm

Actual value

0.016
0.3

86
180
Air Pollution
Control Act

3

mg/L

mg/L

mg/L

Measurement
unit

mg/m3Nv / v ppm

7.2

26.6

73.8

13.5

Actual value

92

6 9

20
(300)*

90(500)*

60

Standardvalue

32
National std:
100
Local std: 80

mg/L

mg/L

mg/L

Measurement
unit

mg/m3Nv / v ppm

15.9

39.0

26.0

Actual value

45

196

Standard
value

50

400

20

100

70

boilerSteam boiler

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.

Water

(km3)

Photocopying paper(thousand sheets)

9,048

PRTR substances

(t)

611

11,155

Scope: Headquarters and the 6 major plants
Period: Fiscal 2010 (April 1, 2010 - March 31, 2011)
Outline of business: Manufacture of PWBs

OUTPUT
Atmospheric release

Discharge into water table
PRTR substances

(t)

0.50

Chemical substances
Amount of waste
generated(t)

Amount of chemical
substances discharged (t)

6,652
46

400

* 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.

CSR Report 2011

2,073

mg/L

- 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.

33

(kℓ)

mg/L

200(150)

6 9

Heavy oilStandard
value

180
Air Pollution
Control Act

160(120)

7.08

381,164

River: 70
Publicsewerage: 300

160(120)

5.8 8.6(MWh)River: 25
Publicsewerage: -Standardvalue

Measurement
unit
Wuhan Plant Actual value

COD

Soot and dust Nitrogen oxide
concentration
concentration(NOx)

Electricity

Chemical substances

Environmental Report

Measurement
unit
Miyagi Plant Actual value

BOD

River: 25
5.7 8.6
Publicsewerage: 300

Measurement
unit

Atmosphere

Resources

From the Field

Shigenori Shiratori, Intermediate process engineer, Environmental Preservation Department, Guangzhou Plant

I

was involved in environmental preservation activities primarily for reducing consumption ofenergy and resources at our Miyagi Plant. For the purpose of promoting environmental
improvement that can contribute to company management, we strove to reduce heavy oil
consumption by enhancing combustion efficiency by supplying oxygen to boiler fuel andreduce the amount of tap water used through recycling waste water from the production
process by ion conversion. These have shown good results. The Miyagi Plant was unfortunately
damaged by the Great East Japan Earthquake, but the improvement expertise gained was not
lost. I hope that putting experience accumulated thus far to use at the Guangzhou Plant in
China will contribute to further advancement of environment conservation.

CSR Report 2011 34

Communication Tools

Financial Performance

Communication with Stakeholders

Fiscal 2010 Annual Report

One of the pledges made in our Code of Conduct is that “we will ensure that our corporate activities andmanagement practices are sound and transparent and continue to be a trustworthy company in order togenerate corporate value.” In addition to complying with fair disclosure and other related laws andregulations in every aspect of our operating activities and services and in response to inquiries frominvestors and shareholders, we avoid using any expressions that could potentially contradict the facts
with regard to our management practices, products or services. We also implement measures such as
securely managing personal data in order to firmly establish Meiko as a company that can be trusted.

While the environment of the global economy for Fiscal 2010 was initially expected to remain severe due
mainly to financial uncertainty in Europe and fading effect of economic stimulus measures, led byeconomic growth primarily in Asia, the overall economy showed a trend toward recovery. The electronics
industry, the Group's main customers, showed a tendency toward recovery due to increased demand for
digital household appliances and soaring popularity of new products such as smartphones in emerging
countries. The automobile industry also showed a sign of recovery due primarily to increased demand forautomobiles and successful launches of fuel-efficient cars in emerging countries. The number of orders
received by the Group steadily increased as a result of growing sales for overseas corporations promoted
since the year before last, development of new customers and active investment in products for which
new growth was foreseen. The Great East Japan Earthquake that occurred in March 2011 however
damaged our Miyagi and Fukushima Plants, and consequently we posted an extraordinary loss.
As a result, in spite of an increase in net sales, income was significantly lower compared to the previous year.

Participating in exhibitions
We took part in the JPCA Show in June 2010 and thePrinted Wiring Board Expo in January 2011. In addition to
attracting a lot of attention with energy-saving, ecofriendly products such as our aluminum heat dissipating
PWBs and Large Electric Current PWB, the Meiko booths atboth exhibitions also showcased embedded PWBs usingstate-of-the-art technology. A great many customers cameto see our booths and shared their honest opinions andrequests, making both events a great success.

(Thousand of U.S. dollars)

A scene from the JPCA Show 2010 in June 2010

Publication of the MEIKO REPORT and renewal of an in-house newsletter and website

Fiscal 2009

Fiscal 2010

Net sales

771,727

750,384

898,670

Operating income

17,926

40,772

39,662

Operating margin

2.3%

5.4%

4.4%

Net income (loss)

5,319

19,650(37,220)

Net margin

0.7%

2.6%

-4.1%

ROA

0.6%

2.1%

2.0%

ROE

1.4%

5.0%

-8.7%

Net income (loss) per share

$0.31

$1.15

($2.00)Printed wiring board (PWB) sales according to product and item
According to product
Others 15%
Flat-screen TVs 23%

Leisure 4%
Office equipment 5%

Fiscal 2010

Computers 7%$898 billion

Office equipment 5%

Fiscal 2009

Computers 9%$750 billion

Audiovisualequipment, etc. 8%

Automotive 30%

Communications
8%

Automotive 25%

In-house newsletter, “MEIKO”

In-house website, “MEIKO EXPRESS”

According to item
Others 11%

We take every opportunity to publicize information on subjects such as trends within the group and ourstrategies and philosophy via newspapers, magazines, company websites and other media. Once again
in Fiscal 2010, we published a large amount of information via economic newspapers, industry journals
and media aimed at shareholders. We will continue to keep our individual and institutional investors,
customers, business partners, employees and all of our other stakeholders informed about Meiko so as
to give them a better understanding of the group as a whole.

Double-sided PWB
13%Modules/PKG
2%
Stack-up PWB
14%Flex / F/R 1%
Modules/PKG
2%
Stack-up PWB
12%

Fiscal 2010

$898 billion
Six-layer PWB 16%

Others 13%

Four-layer
PWB 43%

Double-sided PWB
11%Financial Performance / Corporate Profile

Releasing information via a range of different media

CSR Report 2011

Audiovisualequipment, etc. 3%
DSC DVC 3%

Flat-screen TVs 23%

Leisure 4%

DSC DVC 3%
Communications
10%

Flex / F/R 1%

35

Others 15%

Communication Tools

We publish the MEIKO REPORT at
the halfway point and at the end ofeach fiscal year in order to provide
our shareholders with an overview
of our performance and activities
during the relevant period andimprove their understanding of the
Meiko Group as a whole. For our
employees, we publish an in-housenewsletter entitled MEIKO, with an
aim to providing information,
including messages from the
President and details ofmanagement policies, and have also
renewed an in-house website called
MEIKO EXPRESS to use as tools forcommunication between employees.

Fiscal 2008

Fiscal 2009

$771 billion

Six-layer PWB 16%

Four-layer
PWB 45%

CSR Report 2011 36

Corporate Profile
Headquarters(as of July 1, 2011)5-14-15, Ogami, Ayase City, Kanagawa Prefecture, Japan 252-1104

P l a n t sKanagawa Plant
5-14-15, Ogami, Ayase City, Kanagawa Prefecture, Japan 252-1104

Established

Fukushima Plant
1-2, Aza-Iwasawa, Kamikitaba, Hironomachi, Futaba-gun, Fukushima Prefecture, Japan 979-0401
Miyagi Plant
8-5, Shigeyoshi-cho, Ishinomaki City, Miyagi Prefecture, Japan 986-0844
Yamagata Plant (Yamagata Meiko Electronics Co., Ltd.)
250, Aza-Maki, Yachi, Kahoku-cho, Nishimurayama-gun, Yamagata Prefecture, Japan 999-3511
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.)
No.9 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
November 25, 1975

Capital10,545.63 million yen

Executives

Yuichiro Naya, President & CEO
Seiichi Naya, Director, Senior Managing Executive Officer
Takahide Hirayama, Director, Senior Managing Executive Officer
Masakuni Shinozaki, Director, Senior Managing Executive Officer
Haruyuki Naya, Director, Managing Executive Officer

No. of Employees

13,161 (Japan: 981; Overseas: 12,180) *As of March 31, 2011

Business

Design, manufacturing, and sales of PWBs
Design: Pattern design
Manufacturing: Double-sided through-hole PWBs, multi-layer through-hole PWBs, HDI PWBs, flexible
PWBs, Flex-rigid PWBs, high current copper thickness PWBs, Heat Dissipation PWBs, embedded PWBs, etc.
EMS, Metal Mask
Development, manufacturing, and sales of electronic equipment
PWB testers
Simultaneous multi-image display systems

Organizational Chart

Tetsuro Suzuki, Director, Managing Executive Officer
Kunihiko Sato, Director
Hitoshi Iyomoto, Senior Corporate Auditor
Kunihiro Sugawara, Auditor
Yutaka Gotoh, Auditor

Board of Directors

Board of Auditors(As of July 1, 2011)

President & CEO

Management Reform OfficeInternal Audit OfficeFinancial Performance / Corporate Profile

General Affairs Dept.

Personnel Affairs Dept.

Accounting Dept.

Information System Dept.

Purchase Dept.

Safe Environment Management

Legal and Intellectual Property

PCB Sales Dept. No. 1

PCB Sales Dept. No. 2

PCB Sales Dept. No. 3

Nagoya Sales OfficeOsaka Sales OfficeOmiya Sales Office

1st International Sales Dept.

2nd International Sales Dept.

Sales Operation Dept.

Overseas Sales Dept.

Quality Assurance Dept.

Production Design Dept.

Kanagawa Plant

Fukushima Plant

Miyagi Plant

Yamagata Plant

Guangzhou Plant, China

Wuhan Plant, China

Vietnam Plant

CAD Center

Product Development Dept.

Equipment Technology Dept.

Engineering Department

CSR Report 2011

Management Planning Office

Meiko Research and Development

Metal Mask Dept.

EMS Dept.

Guangzhou EMS Business Dept.

Vietnam EMS Business Dept.

Yamato Technology Center

PI Department

37

Business Management Office

CSR Report 2011 38