M E I KO C SR R E P O R T

2016

M E I K O

C O R P O R A T E

S O C I A L

R E S P O N S I B I L I T Y

Meiko’s ethical business practices
are known throughout the world.

INDEX

Editorial policy

01 Meiko’s CSR

In publishing the CSR Report 2016 (English version)

03 Message from the President

We published CSR Report 2016, our ninth CSR report, consisting of Message from05 Special Feature

the President, Special Features, Sociality Report, Environmental Report and

MEIKO Solar Park Fukushima
Activities and Achievements
ReportManagement Report. We hope that many people will read this report, and will findin the Report that we are united in a constant commitment to earn your trust by
acting responsibly as a good corporate citizen.

Meiko’s CSR Declaration

07 Social Report
For Customers
For Business Partners
For Employees
For Shareholders and Investors
For Local Communities

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

Meiko’s Business Principles andactivities align with the global social responsibilities
and in turn support
an environmentally sustainable society.

Coverage
Meiko Electronics Co., Ltd. and affiliated companies

17 Environmental Report

Reporting period

Basic Environmental Policy
Environmental Management
Promotion Framework
Prevention of Global Warming
Cyclical Use of Resources
Preventing Pollution of the Ecosystem
Management of Chemical
Substances Contained in ProductsThis report primarily refers to CSR activities undertaken during Fiscal 2015 (April 1,2015 to March 31, 2016). Sections outlining past activities might include details
relating to prior periods. Similarly, to provide the latest information, this reportmight also contain details occurring after April 2016.

CSR promotion framework
Our CSR promotion framework is made up ofsite-specific committee members

Reference guidelines
Board of Directors“Environmental Reporting Guideline (Fiscal Year 2012 Version)” (Ministry of the

CSR promotion framework

President & CEO

Area-specificcommittee members

CSR Officer

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

stakeholders.

Compliance Subcommittee

and respond in good faith to input from ourInformation Security Subcommittee

operations in line with our CSR Declaration

Quality Assurance Subcommittee

activities covering all areas of the group’s

Date of publication
Environmental Management Subcommittee

wide basis. This makes it possible to organize

Secretariat

committee members operating on a group

This report: September 2016

Conducting CSR activities throughout our value chain

ISO26000 Comparison

Manufacturing and quality assurance
Recycle and reuse●

EICC Framework
Human
RightsFor Local Communities→P15

Meiko fulfills its corporate social responsibility in the full range ofMaterials procurement

manufacturing, as it delivers products to customers, and achieves●

Four aspects＋
Aiming for a sustainable working
environment through the management system

For Employees→P12

Organizational
GovernanceConsumerIssuesfurther improvements through research and development. By

Corporate Governance→P24
Internal Controls→P25●Compliance→P26●Information Security→P28●Risk Management→P29

Labor
Practices●conducting consistent CSR activities throughout our value chain,●

Meiko strives to

For Customers→P7

conduct its businessactivities in a manner
worthy of the trust of all●

For Employees

For Business Partners

→P10

●
●

Protection of
dignity of,
and respect
for, employees

Labor

Consideration
Environmental for the global
protection environment

Management System→P12

Basic Environmental Plan→P17
System for Complying with Environmental Laws and Ordinances→P18●Prevention of Global Warming→P19●For Shareholders and Investors●Cyclical Use of Resources→P21→P14●Prevention of Contaminating the Ecosystem→P22●Management of Chemical Substances Contained in Products→P23
●

Sales

●

The
Environment

Fair Operating
Practices

relevant stakeholders.
Research and development

30 Corporate Profile* 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.

Community
Involvement andDevelopment

its business activities, through materials procurement andCorporate GovernanceInternal Control
Compliance
Information Security
Risk Management“G4 Sustainability Reporting Guidelines”

representing individual plants, sales offices
and other premises and area-specific

24 Management Report

Environment)

Evaluation andmanagement Health andsafetyof risks

Ethics

Maintenance ofa high levelof ethicalstandards

Uniform standards
by the industry
1. Simple
2. Efficient
3. Widely applicablein the industry

Marketing

1

CSR Report2016

2

Message from the President

Contributing to local
regions and communities
to earn their trust
President and CEO

Yuichiro Naya
A company is closely tied to the communities andregions in which it operates, as well as to the earth,
existing as a member of those social spheres. We at
Meiko always bear in mind the role that we need tofulfill in these spheres as we seek to be accepted andgrow to be a company worthy of the public’s trust.
Furthermore, we believe that it is an important social
responsibility to actively disclose our results withregard to these issues and to create greater value
through communication with our stakeholders.
Recently, for example, the earth has been facing
various challenges, including environmental
destruction, resource and energy issues, humanrights issues, and natural disasters and foodshortages. These challenges are common to all ofh u m a n i t y, a n d t h e y r e q u i r e i n t e r n a t i o n a lorganizations, national governments, companies andindividuals to work together and address theirrespective roles. We at Meiko are fully aware of therole we need to fulfill and are working earnestly onthese challenges.
In our business activities, we are working to reducet h e e nv i ro n m e n t a l b u rd e n a n d r i s k s o f o u r
production processes and enhance resource
efficiency, thereby contributing to a sustainable
society. We proceeded with the commercialization ofvarious products, including high electric current PCBs,
high heat dissipation PWBs and high-frequency
PWBs. These products are important components forphotovoltaic power generation, hybrid cars, electricvehicles and other applications that contribute to therealization of an environmental society or enablevarious functions relating to the safety and security ofdriving vehicles. Our supply chain approach does notconsist merely of low-cost procurement but also
takes into consideration resource depletion andecological degradation. In addition, we address the
problem of conflict minerals from and child labor inareas beset by civil wars and ethnic conflicts bysetting forth a Group policy of eliminating the
procurement of materials from the relevant areas andcompanies. As regards compliance, we provide
regulations and manuals for all employees with due

Corporate Charter
The Meiko Group aims to become a useful presence to as many members of society as possible.
Acting in accordance with the following nine principles, we aim to act as a global company contributing to thecreation of a sustainable society.

Meiko Group
Business
Principles

will develop and supply products and services that are both useful to society and highly reliable in order to guarantee
1 We
customer satisfaction and earn their trust, paying full attention to quality, safety and customer data protection.
2 We will strive to develop creative technology and pave the way for new business in order to help create a brighter future.
will engage in fair, free and transparent competition band fair trade and will maintain sound, healthy relationships with
3 We
political and administrative bodies.

respect to various norms and ethics around theworld. Each of our employees is work ing on
compliance issues in awareness of the global
standards with regard to corporate social
responsibility.
In June 2015, we constructed a photovoltaic power
plant at our Fukushima Factory in Hirono-cho,
Fukushima Prefecture. This photovoltaic power
generation system is designed to reduce theenvironmental burden and build a sustainable society
through the introduction of renewable energy, while
contributing to the local community’s reconstruction
after the Great East Japan Earthquake. The system
consists of 9,772 solar panels on about 40,000 m2 ofland within the premises of the Fukushima Factoryand generates 2,600 MWh a year, which is equivalent
to the annual power consumption of 720 typicalhouseholds.
Through these activities and other contributions, wewill continue to seek the trust of customers, investors,
local communities and society itself. I look forward to
your continued support and advice in the future.

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

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

We will communicate with our shareholders, customers, investors, business partners, employees and other stakeholders anddisclose corporate information in a fair and timely manner to ensure that our corporate activities are as transparent
4 actively
as possible.
will respect diversity and individual employee’s personalities and ensure that all working environments are safe,
5 We
motivating and comfortable.
will reduce environmental impact and contribute to the creation of a sustainable society, in recognition of the fact that
6 We
we all need to do our part to tackle environmental issues.
will actively engage in social contribution activities as a good corporate citizen, including research, education,
7 We
environmental preservation and community services, and will resolutely oppose antisocial individuals and organizations.
will comply with all applicable rules, laws and regulations, at both the local and global levels, as part of our international
8 We
business activities and will respect local cultures and customs and contribute to the development.

9Management 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 willcontinually monitor internal and external feedback, exercise effective governance and rigorously implement corporate
ethics.

Stakeholders
A company’s business revolves around interaction
with the various stakeholders who have an interestin the company. Here at Meiko, all of our employees
around the world recognize that CSR is central to
every aspect of our business activities and fulfill
their responsibilities at the local level as a memberof society with the aim of establishing trust in thecompany.

Employees
Enhancing
corporate value
Adequate disclosure

Sustainable Society

Continuing to Enhance Corporate Value

Shareholders

Society

Working together
with business partners
Reasonable andfair trade

Sales

Manufacturing

Customers

Business
Partners

Environment

Development

Local
Communities

Working together
Providing outstanding value
with local communities
and services
Improving customer Prioritizing environmental preservation
on a local and global scalesatisfaction

3

CSR Report2016

4

Special Feature

Contributing to regions and communities through efforts to reduce the environmental burden

Activity Report on MEIKO Solar
Park Fukushima
Meiko started photovoltaic power generation in June 2015 at the power plant constructed within thepremises of our Fukushima Factory in Hirono-cho, Fukushima Prefecture, aiming to contribute toregions and communities through reducing the environmental burden and building a sustainable
society by the introduction of renewable energy, while contributing to the local community’sreconstruction after the Great East Japan Earthquake.
Here we report on the status and future vision of MEIKO Solar Park Fukushima now that it has been
more than one year since it started power generation.

Contributing to the spread of renewable energies, the preservation of the global environment and the formation of a sustainable society
When the Great East Japan Earthquake occurred in March
2011, the subsequent accidents at Tokyo Electric Power
Company’s Fukushima No. 1 nuclear power plant led to
the restriction of entry to our Fukushima Factory in
Hirono-cho, Fukushima Prefecture, forcing it to shut
down temporarily.
Hirono-cho, where the Fukushima Factory stands, is 20
km from the Fukushima No. 1 nuclear power plant. In
April, immediately after the Earthquake, Hirono-cho wasdesignated as an Evacuation-Prepared Area, whichenabled entry to the Fukushima Factory, leading to therestart of operations in July. However, it will take moretime before residents feel safe coming back. The total sitearea of the Fukushima Factory is 86,910 m2. However, thearea occupied by the factory building (3,600 m 2 ),wastewater treatment and other facilities and parking
Overview of MEIKO Solar Park Fukushima
Installation area:

33,813 m2

Number of solar panels installed: 9,772
Generating capacity:
Estimated annual power generation:
Date power generation started:

5

2,492 KW
2,600 MWh(Annual power consumption of 720 typical households)

June 10, 2015

lots accounts for only about one-fourth of the total area.
Although there was a plan to construct the No. 2 Factoryon the unoccupied land, the plan was suspended
because of the earthquake and the nuclear power plant
accidents. We have since discussed utilizing theunoccupied land with something other than a factory.
Considering the scale and shape of the land, weconcluded that it would be best to introduce a
photovoltaic power plant, which would enable us tocontribute to the local community by introducing
renewable energy to reduce the environmental burden,while ensuring business continuity. MEIKO Solar Park
Fukushima occupies an area of about 40,000 m2 on thesite of the Fukushima Factory. The photovoltaic power
generation system consists of 9,772 solar panels with agenerating capacity of 2,492 KW. Its annual power
generation amounts to 2,600 MWh, which is equivalent
to the annual power consumption of 720 typicalhouseholds.

Results and future plan
Photovoltaic power generation is easily affected byweather conditions. In general, its power generating
capacity tends to be low in winter when the amount ofsunlight is relatively small, whereas it is high in summer
with a lot of sunlight. Results from last year, however,differed from what we expected. The photovoltaic power
output in the summer at MEIKO Solar Park Fukushima
was not as high as expected due to a long stretch ofcloudy weather, whereas the output in winter was
actually higher than expected due to the continuation ofsunny days. From a whole-year perspective, we enjoyedfavorable results as the power generation was more thanplanned during many months.
We are considering the enlargement of MEIKO Solar
Park Fukushima by adding a second solar power
generation area. Through the expansion of thephotovoltaic power generation business, Meiko willcontinue to contribute to the preservation of the global
environment and the formation of a sustainable society.
In addition, we will promote the expansion of the PCB
manufacturing business at the Fukushima Factory,
thereby contributing to the restoration and developmentof our hometown, Fukushima Prefecture.

Power generating capacity of MEIKO Solar Park Fukushima throughout the year(kWh)
300,000

200,000

100,000

0June 2015

July

AugustSeptember

OctoberNovember

December January 2016 February

March

April

May

June

July

VOICE from person in charge
Reviewing the first year of MEIKO Solar Park FukushimaMore than one year has passed since the opening ceremony of MEIKO Solar Park Fukushima in June 2015.
The photovoltaic power generation business was the first business that Meiko started without any prior experience.
Initially, there were many concerns as to whether we could sell the electricity as planned or how weather conditions andseasonal differences would affect the business. Despite these concerns, the business has produced profits significantly
higher than planned. This remarkable achievement led to us considering more additional panels to earn more profit. It wasa relief to see that the earnings by the solar power business could benefit the Meiko Group.
As the person in charge of the maintaining the solar panels, I often walk around the panels to check their condition.
Nearly 10,000 panels are lined up neatly, which is a rather monotonous scenery, but in here you can feel seasonal
differences. In autumn, dragonflies laid eggs on the panels mistaking them as puddles, which left stains that we struggled
to remove. In early spring, I found frog eggs in the puddles, which turned into
tadpoles several weeks later. I was worried about what would happen if allthese tadpoles became frogs, but these creatures are nowhere in sight now.
These scenes at MEIKO Solar Park Fukushima made me realize that nature is
still at work even at a site within 20 km of the Fukushima No. 1 nuclear power
plant. Looking at the various birds flying over the panels, I often consider
them a welcome sight, if only they would not leave their mess on the panels.
To contribute to the local communities of Fukushima, the “continuation ofbusiness” is of crucial importance. Exploring various businesses beyond theSumito Umetani
manufacturing of PCBs is a corporate priority of Meiko, and I am glad that
Deputy Manager, General Affairs Section
MEIKO Solar Park Fukushima has become a cornerstone of that policy.
Fukushima Factory

CSR Report2016

6

SOCIAL REPORTSOCIAL REPORT

for both overseas and Japanese factories that ensures our
products meet our customers’ needs.
Aiming at enhanced quality assurance andmanagement that includes plants around the globe, wewill implement manufacturing practice to fulfill ourcustomers’ demands.

At Meiko, we manufacture and sell PCBs, devices that are essential for industrial development, byinteracting with diverse people in various countries, regions, and communities.
We recognize that we are a social entity, and we fulfill our responsibilities accordingly. At theReceiving awards from our customers

same time, we give consideration to our stakeholders as we engage in our business activities.

Received an award

For Customers

from Panasonic
Automotive &Industrial Systems
Company

Initiatives for Quality Assurance

On March 17, 2016, the Wuhan
Plant won the “Best SupplierAward” of Panasonic
Automotive & Industrial
S y s te m s C o m p a ny fo r i t sactivities in the PCB quality
improvement project.

Major Activities in 2015

Future Plans‌Supervised
defective items identified by customer complaint andfactors thereof and conducted in-process quality improvement
activities.
‌In order to reinforce the sharing of past problems, the Quality
Assurance Headquarters held Defect Communication Committee
meetings to improve the system of identifying and sharing major
material defects.
‌Conducted an internal audit of manufacturing processes for all
factories to analyze and compare the strengths and weaknesses ofeach factory, followed by meetings to share case reports of eachfactory.
‌Implemented a review on our system to reinforce and strengthen the
5M1E change management.
‌Restructured activities of the Standardization Committee to promote
the company-wide standardization of the MES.

‌ ake improvements in terms of design and management, based onMcustomer complaint and information on in-process defects, in orderto achieve the target of “zero” market defects.
C‌ ontinue to share cases of past problems among relevant parties toprevent the occurrence of defective products.
C‌ ontinue to conduct and upgrade the internal audit of manufacturing
processes.
‌Further perform thorough management of modifications.
D‌ evelop a company-wide system to address and manage
abnormalities (review of the system).
I‌ nvolve the Standardization Committee in promoting thestandardization of the MES.

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 of our
products to guarantee the highest possible levels of customer satisfaction and contribute to society.

7

Our approach to quality assurance andorganizational efforts to ensure high quality

Assurance of quality that meets customer needs
Horizontal deployment of the group’s four overseas factories

Recently, market recalls due to defective automobile
components have attracted media attention, which is
becoming an increasingly serious risk that could threaten
corporate management.
Because Meiko products are chiefly incorporated into
automobiles and enjoy many other applications as well,ensuring high quality has increasingly become a criticalissue.
To address quality-related risk, we must totally change
our conventional attitude and set our goal at achieving“zero” defects.
To enhance the quality of design and manufacturing,
we are working to optimize our quality management
systems at all stages to eliminate the occurrence of
defective products.

Based on the Fiscal 2016 Group management policy, weare proceeding with a product quality assurance system
Quality Assurance Efforts at Meiko Flow of Receipt of Orders / Manufacturing / Shipment
Design Quality

DR1

Final Pre-Production Check(1) DRBFM(2) Confirm theconditions andenvironment where
PCBs are used(3) Share past problems(1) Reliability
evaluation(2) Final qualitycheck(3) Processcapacity

Plant, Toyota Motor Corporation
On May 27, 2016, theYa m a g a t a P l a n t w o n t h eexcellence award of Toyota
Motor Corporation for its
development of the “Activities
for In-process Three ZeroDefects,” the basis of directtransactions with Toyota Motor
Corporation.

Customer Satisfaction Survey
Meiko performs a survey every year to measure customer
satisfaction with its products and services in order toimprove its product and service quality.
In Fiscal 2015, 45 companies answered the survey,
responding to questions about (1) product quality, (2)product prices, (3) product delivery times, (4) service, and(5) technological response.
In their comments, many customers indicatedsatisfaction; some, however, expressed complaints, which
we will take as a guide for the improvement of products
and services as we strive to achieve even greater
customer satisfaction in the future.

Acquisition of ISO9001 and ISO/TS16949 certifications

Manufacturing Quality

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

To achieve “zero” defects, organized efforts at each step are necessary.
Receipt
Trialof
Mass Production
Shipment
Production
OrdersDR

Received an award from Hirose

Quality Improvement:
Quality targets, Past problems, Rollout of
information, QC efforts, FTA analysis, FMEA
Quality Management:
Addressing abnormality, 5M1E, Initial
production control chart, Check sheets, etc.
Quality Awareness:
5S (Sorting, Setting-in-order, Shining,Standardizing, Sustaining the discipline) and3F (Fixed-position, Fixed-item, Fixed-quantity),
Education, Target management

Shipping
inspection(1) Lot assurance
inspection(2) Traceability

Ability todeal withcustomers
Internal
audit ofmanufacturing
processes

The ISO9001 and ISO/TS16949 certifications we have obtained
ISO9001
May 13, 1997 Meiko Electronics Co., Ltd. obtained

certification for its PCBs.
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 PCBs).
Nov. 29, 2006 Wuhan Plant in China obtained certification.
Feb. 20, 2008 Extended certification obtained by Metal
Mask Dept.
Jun. 18, 2010 Vietnam Plant obtained certification.
Jan. 15, 2014 Ishinomaki Factory obtained certification
again.
Apr. 24, 2015 Thang Long Plant obtained certification.

ISO9001 (Japan)

ISO/TS16949
Apr. 19, 2004 Guangzhou Plant in China obtained certification.
Mar. 22, 2011 Wuhan Plant in China obtained certification.
Jan. 9, 2013

Vietnam Plant obtained certification.

* The plants in Japan obtained certification from Japan
Electrical safety & Environment Technology Laboratories(JET). The plants in China obtained certification fromTUV Rheinland. The Vietnam Plant obtained certificationfrom Bureau Veritas Certification (BVC).

ISO/TS16949(Vietnam Plant)

Employee’s VOICE
I am Yamamoto, and I am in charge of the Vietnam
Plant project to acquire certification as a supplier from
European clients that manufacture car-mounted
components. The automobile industry is not only
experiencing electrification, as seen in the shift fromengines to motors, but also the accelerating progressof electronic device technologies particularly in
automated driving. The technical requirements for
PCBs have advanced accordingly, and the demand forhigher quality, including durability, also has increased.
Meiko supplies its products to manufacturers of carmounted components chiefly in Japan. In recent years,
however, we have received an increasing number ofinquiries from manufacturers based in Europe. The
Vietnam Plant, which will be a leading location to serve
these potential clients, is making all-out efforts toacquire client certification as early as possible.
Although doing business with European
manufacturers involves various difficulties due to thedifferences in language, ways of thinking, mindset andculture, we provide our younger staff with
opportunities to take charge of such global projects sothat they can accumulate valuable experience andexpertise from overcoming suchdifficulties.
To survive in the drasticallychanging automobile industry
market, we will fully utilize ouraccumulated experience andexpertise so that we can supply
products of high quality andreliability to manufacturers of Toshinobu Yamamotoc a r - m o u n t e d c o m p o n e n t s Section Manager in charge of theVietnam Plant certification projectthroughout the world.
Quality Assurance Department

CSR Report2016

8

SOCIAL REPORTSOCIAL REPORTFor Customers

Product Development, Research and Development

Supply Chain

Major Activities in 2015

Future Plans

Major Activities in 2015

Future Plans

D‌ eveloped mass production of copper inlay PCBs.
‌Newly developed high-heat releasing, insulating resin materials formetal base PCBs.
‌Newly developed in-vehicle embedded passive devices PCBs.
‌Newly developed 3-D shaped PCBs.

P‌ repare for mass production of copper inlay PCBs.
‌Develop PCBs embedded in power semiconductors.
‌Newly develop onboard communication PCBs and sensing PCBs.
‌Improve the mounting reliability of 3-D shaped PCBs and make amass production plan of 3-D shaped PCBs.

E‌ stablished purchasing crisis management standards and carried out
purchasing audits in an effort to minimize procurement risks‌Performed conflict mineral survey in October 2012, using EICC
standard format‌Performed an environmental measure survey based on the latest versionof regulations such as REACH regulations <SVHC169 substances>‌
Continue
performing purchasing audits based on crisis management
standards‌Perform continued investigation for manufacturers for whom sourcing
locations are unknown‌Perform latest version management and clarify non-use guarantees

Meiko develops products that correspond to the current market’s demand for new products and technologies, and at
the same time develops new high-performance products and processes that correspond to next-generation
automatic operations of automotive. In addition, we are reviewing the methods of manufacturing PCBs from all
aspects, including materials, processes and waste treatment, with the initiative to minimize costs and reduce waste
generation based on our theme of “developing environmentally-friendly, low-cost production methods.”

Efforts in Product Development
The Product Development Department promotes
development and mass production of PCBs that meetthe needs of our customers. Since we have recently
received a number of requests from our automobile
related customers for electrification of power for electricvehicles and hybrid vehicles, etc. and automation ofvehicles, we are promoting development with a new
focus on the integration of heat releasing functions into
PCBs in addition to the technologies to manufacture
vehicle-embedded PCBs that we have developed thus far.
PCBs with heat releasing functions are separately
developed based on the direction of the flow of heatreleased by elements (Figure 1); (1) We have establishedthe manufacturing methods and preparing for mass
production of copper inlay PCBs that can dissipate heatfrom right below the elements; (2) As for metal base PCBs
with heat-generating elements that dissipate heat acrossthe sur face of the PCBs, we are promoting thedevelopment of high thermal conductivity resins toachieve high heat dissipation; in addition to thesedevelopments, (3) we are carrying out development ofheat dissipating structures for embedded passive devices
PCBs that contain heat generating elements. As all ofthese PCBs can promptly dissipate heat generated byelements, we believe that they can greatly contribute to
the stable operation of high heat-generating parts.

Figure 1
Flow of heat(2) Metal Base PCBs
Heat generating
element

High thermal
conductivity resin(2)
Metal plate(1)(1) Copper inlay PCBs

Heat generating
Copper inlay
element
Heat
sink

9

For Business Partners(3) Embedded passive devices PCBs
Heat generating element

Heat
sink

We believe that communication and sensing functions
will become important for automation technologies,
which are expected to greatly advance in the future. We
will combine our manufacturing technologies of highdensity PCBs, which have been developed for PCBs in
smartphones, and manufacturing technologies ofvehicle-embedded PCBs in order to widely respond to
our customers’ needs.

Efforts in Research and Development
The Research and Development Depar tment is
promoting collaborative research with government,
industrial and academia par ties related to next
generation products, and engaged in the developmentof Meiko’s original 3-D shaped PCBs.
In Fiscal 2015, we jointly developed the high-speed
electrolytic plating process for single wires with theMaterials and Surface Engineering Research Institute,
K anto Gakuin University and par ticipated in thedevelopment of high-frequency PWBs carried out by theHigh-speed Transmission Working Group. In addition, we
received the “METI (Ministry of Economy, Trade andIndustry) Minister’s Prize” under the Sixth “Monodzukuri
Nippon Grand Award” together with Sulfur Chemical
Laboratory Inc. and Toshiba Corporation. We received thesaid award for our work in the application of a molecularbonding technology to PCBs and the mass production ofsuch PCBs, in collaboration with Sulfur Chemical
Laboratory Inc.
We also developed 3-D shaped PCBs that arecompletely different from regular rigid PCBs and filed fivepatent applications for inventions. These 3-D shaped
PCBs have received a great response since their exhibitionat the INTERNEPCON Japan 2016 soon after our first press
release in January 2016. Many customers have showed
great interest in the 3-D shaped PCBs and we havereceived requests for sample evaluation and mounting
evaluation. While responding to those requests, we havebeen working in the improvement of processes and themounting reliability of the 3-D shaped PCBs.

Currently, a company is required to have, as its basic framework, a consistent supply chain covering the entire processfrom material procurement from business partners through to production, distribution, and sales of products.

Basic Procurement Policy

Request to our business partners

A t M e i k o, w e e n c o u r a g e t h e c o n t i n u a t i o n o f
procurement activities based on the Basic Procurement
Policy below. In line with this trend, we at Meiko believethat the most important aspect of our procurement
activities is to establish win-win relationships andrelationships of mutual trust with our business 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, andmanagement, as well as business continuity in case of an
accident and a disaster under the basic principles of (1)understanding our Basic Procurement Policy, (2)compliance with laws, ordinances, and social norms, (3)environmental protection, (4) exclusion of antisocial
forces and (5) the EICC Code of Conduct. In this way, weare strongly emphasizing CSR practices within our supply
chain.

In accordance with the measures for the environment
included in our Basic Procurement Policy, we are callingfor more than 300 business partners to understand andpractice 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
and recommend green procurement, and also requestthat distribution and sales activities be undertaken in anenvironmentally friendly manner. Specific results ofactivities for 2015 include the implementation of
initiatives such as establishing purchasing crisis
management standards and conducting purchasing
audits to minimize procurement risks, conflict mineralsurveys and surveys on employment of young workers
based on the EICC standard format and environmental
measure sur veys based on the latest version ofregulations such as REACH regulations.

Basic Procurement Policy
1. Procurement activities optimized for our global
production in accordance with the Action Guidelines
for Purchasing Deals
2. S mooth, fair, appropriate procurement activities
based on closer communication and strengthened
cooperation with our business partners
3. Strengthened environmental measures (chemical
substances / green procurement)

1. Focus on green procurement, compliance with theg re e n p ro c u re m e n t s t a n d a rd, p ro v i s i o n o f
information concerning “eco products”
2. No idling
3. Waste reduction
4. Cooperation with contact in case of an emergency

4. Promotion of elimination of conflict minerals by
supply chains and surveys on the employment ofyoung workers.

CSR Report2016

10

SOCIAL REPORTSOCIAL REPORTBusiness Partner’s VOICE
We are sincerely grateful to Meiko Electronics Co., Ltd.,for its patronage of products from Rohm and Haas
Electronic Materials K.K., a member of the Dow
Chemical Company Group.
D o w h a s a c o r p o r a t e v i s i o n t o c re a t e t h e
i n n ov a t i o n s t h a t a re t r u l y n e c e s s a r y fo r t h eadvancement of human beings by utilizing scientifictechnologies. By mobilizing its expertise in chemistry,
physics and biology, Dow has addressed some of theissues that our world is facing, including clean water,
clean energy or energy conser vation and theadvancement of agricultural productivity. Since 1995,
Dow has set 10-year sustainability goals to reduce
waste, water and energy consumption and to develop
products with high sustainability.
In 2015, Dow embarked on the third stage of its
sustainability journey by announcing the “2025
Sustainability Goals.” These goals are set to capitalize
on its innovative capabilities, broad coverage of theworld markets and the dedication of its capable
employees, and to help find advanced solutions to theissues of local communities and the global
environment.
Rohm and Haas Electronic Materials K.K. hascontributed to the development of electronic parts,
display materials and next-generation semiconductors
through its leading-edge technologies, thereby
helping to reduce the environmental burden andpromote interconnection in society. We have also
continued projects to contribute to local communities
near the factory site. Since 2010, we have donatedmusical instruments and AEDs to junior high schoolsin Agano City, where our Sasakami Factory is located.
Since 1998, we have participated in the Fukushimagata
Cleanup Campaign hosted by Niigata City.
We will continue to value our partnership with animportant stakeholder such as Meiko to address theissues of the global environment. Your continued
patronage of our products would be appreciated.

Yasuharu Yamago

Interconnect Technologies Business Division
Rohm and Haas Electronic Materials K.K.

Measures concerning purchasing and procurement
Internal control and compliance
At Meiko, we undertake smooth operations with ourbusiness partners by complying with the following rules
on purchasing and procurement activities. At Meiko, we
undertake smooth operations with our business partners
by complying with the following rules on purchasing andprocurement. We carry out appropriate transactions withour business partners by undertaking internal training
and confirming compliance in relation to adherence tolaws, ordinances, and social codes, including the Act
against Delays in the Payment of Subcontract Proceeds
to Subcontracts in Japan, as well as compliance withcustoms regulations and the relevant regional andnational laws, ordinances, and social codes in our global
procurement activities.

11

For Employees

1. Fair, appropriate operations with business partners
shall be undertaken through compliance with laws
and ordinances concerning purchasing andprocurement activities.
2. B usiness partners’ information that we obtainthrough purchasing and procurement activities shallbe kept confidential and the information security
system for preventing the leakage of confidential
and personal information shall be strengthened.
3. Entertainment and gifts for business partners shall bepermitted to the extent that would normally beconsidered reasonable, but shall be prohibited if
such acts result in personal profits.
4. Efforts shall be geared toward eliminating antisocial
forces, procurement of conflict minerals and young labor.

Environmental measures (green procurement)
In accordance with the “standards concerning theenvironment,” we encourage environmentally-friendly
purchasing and procurement activities together with ourbusiness partners.
1. We confirm laws and regulations (RoHS Directive, ELV
Directive, and REACH Regulations) and the content
of environmentally hazardous substances toencourage the procurement of compliant products
and maintain and improve the environmental qualityof our products.
(1) RoHS Directive: EU restriction on the use ofcertain hazardous substancesin electrical and electronicequipment(2) ELV Directive: A directive adopted by the EU
to reduce the environmental
burdens of end-of-life vehicles(3) REACH Regulations: EU law for protecting people’s
health and the environment: Legally controlled substances(4) JIG (1-R)
specified in the guidelines
concerning the disclosure of
information regarding chemical
substances contained in electricaland electronic equipment(5) Customers’ standards
2. We encourage the signing of the Memorandum on
Environmental Protection and Guarantee of Non-Useof Environmentally Hazardous Substances to ensure
environmental protection together with our businessp a r t n e r s. We a re p u r s u i n g t h e s i gn i n g t h i s
Memorandum and Guarantee with our major
business partners, including manufacturers to whom
we outsource processing.
3. We strive to reduce the discharge of industrial waste
and encourage the use of this waste as a valuable
resource by recycling it or using it in other ways
together with our business partners.

Conflict-Free Procurement Policy
In August 2012, the U.S. Securities and Exchange
Commission (SEC) adopted the rules on conflict minerals
under the Dodd-Frank Wall Street Reform and Consumer
Protection Act. Meiko is eliminating conflict minerals
from its supply chains. Meiko has defined a Conflict-Free
Procurement Policy which consists of using EICC/GeSIquestionnaire-based surveys, response disclosure, andfollow-up actions to eliminate resource procurement
which includes conflict minerals.

Creation of a Comfortable Working Environment

Major Activities in 2015

Future Plans‌
Promoted
the creation of a comfortable working environment andsystem for women‌Developed next-generation leaders who epitomize the values to beshared by all employees‌Initiated management training for employees stationed overseas andthe dispatch of employees to overseas locationsC‌ ontinue promotion efforts‌Cultivate next-generation management‌Provide intensive education on manufacturing technologies andreinforce self-development programs

In line with the concept that “the greatest asset of a company is its human resources,” we focus on the creation of acomfortable working environment that is safe, secure, hygienic for all our employees, respects their diversity, andallows them to develop.

Respect for diversity

Employment and exchanges of global human resources

At Meiko, we respect human rights and strive to recruit,evaluate, and treat our employees without discriminationon the basis of race, creed, religion, nationality, age,gender, disability, and other attributes, so that diverse
employees are able to exercise their abilities. For women
employees, a reduced work hour system is promoted for
those returning from maternity or parental leave. In fiscal
2015, five employees took parental leave, four employees
returned to work and ten used the reduced work hoursystem (excluding Group companies).
At oversea locations, many Japanese employees are atwork in addition to local employees, and in Japan as well,dozens of foreign national employees are at work. We
also transfer personnel and exchange employees
between Meiko Group companies, both in Japan andoverseas, to develop global human resources andstimulate the further revitalization of our humanresources.

Employment of persons with disabilities
Since Fiscal 1991, Meiko Electronics Co., Ltd. (excluding its
Group companies) has continued to achieve the legallyrequired number of employees with disabilities ina c c o rd a n c e w i t h t h e A c t o n E n c o u r a g i n g t h e
Employment of Persons with Disabilities up until Fiscal
2009. In Fiscal 2010 and Fiscal 2011, however, we were
not able to meet the legal requirement, partly because
the overall number of employees increased. Since Fiscal
2012, we have continued to achieve the legally required
number of employees with disabilities.
 hanges in the number of our employees with disabilities andCthe number required by law (Fiscal 2011–2015)■Total Employees (Persons)
1,000
750

824

Legal requirement

803

767

40

756

697

500

15

15

17

15

250

14

14

15

15

0

2011

2012

2013

2014

Employees (Persons)
30

13
13
2015

20
10
0

(Note) L egally required number of employees with disabilities = Numberof permanent employees × Legal rate of employment (rounded
down to the nearest whole number)

Currently, approximately 37 employees from overseas
countries, including China and Vietnam, are working at
Meiko’s business establishments in Japan, while morethan 80 Japanese employees are working overseas.
Until Fiscal 2015, a total of 201 persons had completed
the language and skill training in Japan intended for
future executives of our overseas subsidiaries, which has
been offered every year since Fiscal 2003.
*As of June 30, 2016

Parental Leave and Reduced Work Hour System User’s VOICE
After giving birth to my first son in July 2015, I tookparental leave for one year. The staff at my workplacewillingly shared the workload caused by my absence,and my supervisor and coworkers kept in touch withme during the leave. Therefore, I was able to return towork without any problems.
Currently, I am using the reduced work hour systemfor child care so that I can return home early to havetime for housework and child care. The system is
helpful in that it allows me to set the working hours
myself. Without this system, I would have beenworking full time and my situation would have beendifficult.
This system is readily accessible to working mothers,
and it is widely supported by
the employees. Keeping a goodframe of mind is important inbalancing work and family, andI greatly appreciate theaccessibility to the child-caresystem at Meiko.
I would like to help create abetter working environment
Mari Shimizu
where this system is easily
Team Leader
available for employees who Manufacturing Headquarters
want to use it.

CSR Report2016

12

SOCIAL REPORTSOCIAL REPORT

Employee safety and health initiatives
Global Employee’s VOICEI joined Meiko in 2006 as a new graduate, and since then I am in charge of domestic marketing.
The marketing of PCBs involves being a contact for various sections of client companies,
including purchasing and engineering. As such, we listen to the clients’ needs to provide
technological proposals, and then we proceed from design to trial, to volume production, toshipping and to inspection.
During these marketing activities, we receive various requests from clients. It is a challenging
but joyful experience to meet such requests.
To further expand our sales, amid the maturing domestic PCB market, I would like to extend thesphere of our marketing activities outside Japan, including Southeast Asia, Taiwan and China, for

Huang Weifeng

Section Manager
Second Marketing Department

which my understanding of the language and culture of Japan and China could be an advantage.

Industrial Safety and Health Guideline

We conduct safety and health initiatives at Meiko basedon our Industrial Safety and Health Guidelines for the
purpose of eliminating work accidents and improving
the working environment in all workplaces, andencouraging the good health of all employees. To ensurethat problems are found efficiently, not to mention
prevent work accidents, we have arranged for our
workplaces to be audited by industrial physicians,
industrial health consultants, and other experts. In
addition, our Safety and Health Committee members
undertake audits of the plants. What is more, we estimate
risks through risk assessments, based upon which we
implement measures to prevent work accidents andimprove the level of our safety and health management.

In line with the concept that “the greatest asset of acompany is its human resources,” at Meiko Group we
focus on the creation of a working environment thatis safe and secure for the mental and physical healthof all our employees, and allows them to fully
demonstrate their individual capabilities.
1. We will comply with the regulations and in-houserules related to industrial health and safety as we
endeavor to eliminate dangers in all workplaces.
2. We will conduct risk assessments for our workplaces,
set goals for work environment improvements andcontinually work toward reducing work accident risks.
3. We will ensure that each and every employee isaware of industrial safety and health initiatives as we
endeavor to improve awareness of safety and health.
4. W e w i l l e n d e a v o r t o a c t i v e l y s u p p o r t t h emaintenance and improvement of the mental andphysical health of our employees.

For Shareholders and Investors

Improvement and Expansion of IR Activities

To contribute to the realization of Meiko’s aim to be the world’s No. 1 supplier of PCBs, we willcontinue aggressive marketing efforts to secure continued growth in sales and profits.

Educational programs
At Meiko, we provide job-class-specific training to newrecruits, 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, andimproving their overall abilities that are universal to allorganizations. In addition, we offer qualification programs
and provide financial assistance with correspondence
courses to help our employees with their selfdevelopment and encourage them to obtain technicalqualifications. In particular, we position training for next
generation leaders as a primary task, and promote a oneof a-kind research to extract the shared distinctive values
that must be passed on from the leaders of today tothose of next generation, and to reflect these to thetraining program.
In addition, we offer qualification programs andprovide financial assistance with correspondence courses
to help our employees with their self-development andencourage them to obtain technical qualifications, aswell as operate foundation schools by foreign instructors
and full financial assistance of examination fees for TOEIC
Institutional Test.
Moreover, we are also developing employees who areable to work globally at the forefront of oversea
establishments which are increasing its importance, byimproving and expanding foreign language training
programs for domestic workers and the training ofoversea workers in Japan. In addition, we are planning todevelop management ability as well as overseas
assignment (trainee system).

Job-class-specific training
New recruits• Business simulation training• Manufacturing and sales hands-on training andproblem-solving

Major Activities in 2015

Future Plans

Mid-career
employees• MBA (Meiko Board Academy)• Cultivation of next-generation management• MAPS (Management Academy for Problem Solving)• Problem solving capability improvement

C‌ ontinue holding explanatory meetings‌Continue globalization and deliver valuable information for investors

Managerial
employees‌ meetings including results briefings for institutional investors,Heldanalyst meetings, and small meetings, also made several investor
calls‌Produced English versions of IR tools for foreign investors

Department
heads• President school• Cultivation of an implementer of Meiko’s corporate
DNA in order to produce even greater results

Field-specific training
Technical
personnel
training• Meiko PCB school (basic and advanced courses)• Improve technical abilities of new recruits,
midcareer employees, and core technical personnel

Globaltraining• R egular TOEIC Institutional Tests and incentive
system• English training for selected employees• Chinese and Vietnamese language trainings

Self-development
Distance
learning• Subsidize 80% of fees when language courses arecompleted

Timely and adequate disclosure of information

Shareholders’ report

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 thetransparency of our management practices.

To ensure a better understanding of Meiko, we publish
the MEIKO REPORT twice a year to provide shareholders
with information on Meiko.

For foreign investors

Employees attending a training seminar

13

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

I n order for foreign investors to have a better
understanding of our business activities, we have beenpromoting the globalization of IR activities, including the
production of IR tools in English, such as convocation
notice of the shareholders’ meeting, presentation
documents, shareholders’ report and documents forresults briefing.

MEIKO REPORTCSR Report2016

14

SOCIAL REPORTSOCIAL REPORTFor Local Communities

Social Contribution

Action2Major Activities in 2015

Future Plans

I‌mplemented CSR activities addressing local issues at each site
‌Improved information sharing to enable sites to implement activities
performed at other sites.

‌Createa framework that enables more employees to participate
autonomously.

Blood donation activities

Meiko is actively involved in blood donation activities at bases in Japan and overseas. At the Fukushima Factory, 12
employees in September and 19 employees in March donated blood as a small part of their contribution to society, hoping they
can help save someone’s life. At the Yamagata Factory, a blood drive took place in February because the winter season tends to seea shortfall in available blood.
From the Guangzhou Plant, 61 employees participated in a blood donation activity in
July held by the Nansha District government.

At Meiko, we encourage social contributions by our Headquarters and group companies to build close relationships
with local communities. We will continue to actively participate in environmental beautification activities and otherevents organized by the local governments in the various areas. At the same time, we will fulfill our responsibility as agood corporate citizen by encouraging social contribution activities in each local community.

Yamagata
Wuhan‌Local clean-up activities
Thang Long‌Local clean-up activities‌
Provisionof internships for students from local highschools and middle schools‌Local clean-up activities / Yachi Industrial Park
Blood donation activity at the Fukushima Factory Blood donation activity at the Yamagata Factory

Fukushima‌Co-sponsoring
the Hirono-cho Summer Festival(provided co-sponsorship money and fireworks)‌Semiannual participation in blood donation activities(12 participants in September, 19 in March)

Vietnam‌
Distributionof mooncakes (confectionery gifts) tochildren with disabilities and elderly people‌Presentation of new year gifts to the blind‌Sponsorship of a local wrestling tournament

Guangzhou‌
Receptionof award for “Advanced Company Supporting
People with Disabilities”‌Participation in a blood donation activity held by the
Nansha District government (61 participants in June)

Action1

Headquarters and KanagawaC‌ o-sponsoring the Ayase Environmental Network‌Co-sponsoring the Ayase Commerce and Industry Fair
‌Co-sponsoring the “Ayase Fureai-no-ie” managed by
the Ayase Council of Social Welfare‌Co-sponsoring the Ayase City Fireworks Display‌Held the spring game of the Ayase City Children’s
Baseball Foundation and the Meiko Cup‌Co-sponsoring the 14th Kanagawa Prefecture’s Skills
Competition for People with Disabilities, Abilympics
2016

Action3Social contribution activities suited to the local community

Meiko’s Guangzhou Plant was recognized by the Guangzhou Nansha
Association of Persons with Disabilities for its support of disabled people at the 26th
Nansha District Support Event for Persons with Disabilities.
Meiko’s Vietnam Plant distributed mooncakes to children, disabled children andsenior citizens in Phung Xa Village. Mooncakes are considered as a confectionery forgood fortune in Vietnam and are often given as presents. To the winner of the Wrestling
Festival in Phung Xa Village, the plant presented a personal computer as the first-placeprize.
2016 plaque awarded for the supporting disabled persons

Providing programs for middle and high school students

To raise the vocational understanding ofstudents through hands-on experience in society andincrease the awareness of local companies, theYamagata Factory provides internship opportunities andfactory tours every year for local middle and high school
students. This year, students from Murayama Industrial
High School experienced the factory’s PCB contour
processing and final inspection processes. Through suchfirst-hand experience, the students learned the difficulty,
importance and enjoyment of manufacturing.

15

Blood donation activity at the Guangzhou Plant

Internship for Murayama Industrial High School

Mooncakes handed out to the local citizenry

Wrestling Festival in Phung Xa Village

CSR Report2016

16

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

ENVIRONMENT REPORT

System for complying with environmental laws and ordinances
To implement our Basic Environmental Policy, we have established an ISO environmental management system, and haveappointed a person responsible for controlling the environmental management system (EMS) at each plant in Japan andoverseas. We also strive to protect the environment through CO2 reduction and zero emissions activities, etc. conducted by
the cross-company Energy Saving Committee.

System for furthering Environmental Management
Board of Directors

Major Activities in 2015

Future Plans

President & CEO

CO2 emissions increased slightly compared with the previous year

‌Reduce CO2 emissions by 1% or more

Added 16 hybrid cars to the company-owned vehicle fleet

Promote the replacement of fluorescent lamps with LED lamps‌
Maintained
a 99% or higher waste recycling rate (Plants in Japan
only)

Strive for 100% waste recycling rate‌Employedsystems such as our waste exchange system to utilize
disused items

General Manager Responsible for EMS (Japan)‌ abreast of additional restricted substances under the RoHS
Stay
Directive and perform supplier surveys

Internal 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

Vietnam 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 way that iscompatible with our living environment.”

Reusing
naturalresources

Preventing
pollution of theecosystem

Environmental Action Guideline
Meiko’s businesses include the patterndesign and manufacturing of printed wiringboards and the manufacturing of metalmasks, as well as the development andmanufacturing of electronic devices. We
consider the implications of these activities
for the environment, and emphasize theimportance of reducing their impact interms 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 business activities have on
the environment. We make every effort toprevent environmental pollution andreduce our environmental footprint
through the following measures:

17

Thang Long Plant

Person responsible for EMS at Kanagawa Factory

Person responsible for EMS at Ishinomaki Factory

Preventing
globalwarming

General Manager Responsible for EMS (Vietnam)

Internal environmental auditor from the ISO Promotion Office

Person responsible for EMS at Yamagata Factory

Basic Environmental Policy

General Manager Responsible for EMS (Wuhan)Internal environmental auditor from the ISO Promotion Secretary

Person responsible for EMS at Fukushima Factory‌Stayed abreast of the added SVHCs and performed supplier surveys

General Manager Responsible for EMS (Guangzhou)

ISO14001 Promotion Secretariat at Headquarters
Management concerning ISO14001
Promotion of environmental improvement•Energy conservation•Waste reduction

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 in Japan and overseas.
Our acquisition of ISO 14001 certification

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 productdoes not contain harmful chemicals.
4. We properly manage chemical substances contained in our products and makesure 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

President & CEO Yuichiro Naya

Mar. 27, 2001 Headquarters and Kanagawa Factory
Sept.25, 2001 Yamagata Factory
Apr. 17, 2003 Extended certification obtained by the Fukushima Factory
Apr. 30, 2003 Guangzhou Plant in China obtained certification
Apr. 22, 2005 Integrated certification obtained by the three Factories in Japan

ISO14001 Certificate for factories in Japan ISO14001 Certificate for Guangzhou Plant in China

Apr. 22, 2005 Extended certification obtained by M. D. Systems Co., Ltd.
Apr. 28, 2006 Extended certification obtained by Solder Stencil Dept.
Feb. 20, 2007 Wuhan Plant in China obtained certification
Mar. 26, 2009 Extended certification obtained by Meiko Research andDevelopment Center and Yamato Technology Center
Jun. 18, 2010 Extended certification obtained by Thach That Plant in Vietnam
Jan. 15, 2014 Ishinomaki Branch Factory obtained certification again
Apr. 24, 2015 Thang Long Plant in Vietnam obtained certification* The factories in Japan obtained certification from Japan Electrical Safety& Environment Technology Laboratories (JET ). The plants in China
obtained certification from TUV Rheinland. The Vietnam Plant obtained
certification from Bureau Veritas Certification (BVC).
ISO14001 Certificate for Wuhan Plant in China ISO14001 Certificate for Thang Long Plant in Vietnam

CSR Report2016

18

ENVIRONMENT REPORTENVIRONMENT REPORT

Complying with environmental laws and Ordinance
Environmental laws and ordinances have been amended
due to increasing awareness of environmental impact.
We believe that ensuring our compliance with all theamended laws and ordinances of individual regions willlead to our contributing to environmental protection ineach local community. In accordance with ISO14001, we
identify the laws and ordinances of individual regionsthat are related to our business activities, and watch for
any amendments to ensure full compliance.

Promotion of environmental targets plan
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 including electricity, heavy oil, gas, andgasoline. Also closely related to environmental impact are
resources such as raw materials, water, and paper, andwaste, including plastic waste, sludge, waste acid, andwaste alkali. In Fiscal 2015, we reset the benchmark andtargets and continued action toward the new targets. We
will continue to improve production efficiency andconduct further energy-saving initiatives to achieve
steady reductions in per production volume metrics.

General Manager Responsible for EMS / Senior Executive Officer

Junya Wada

Based on Meiko’senvironmental policy, we
a re t a k i n g m e a s u re s toconser ve resources ande n e r g y, r e d u c e w a s t e ,encourage recycling andproperly manage chemical
substances contained in
products, as well as those in
the production processes, to limit their usage andreduce their environmental impact.
These environmental efforts have the best effectwhen both the tangibles, such as systems andequipment, and the intangibles, such as employees’
persistent effor ts, wor k together. Apar t fromintroducing new initiatives, we also encourage theimprovement of conventional efforts to produce better
results companywide.
The examples of energy-saving improvements
presented in last year’s CSR report have already beenshared with other plants to expand the scope of
application. The MEIKO Solar Park Fukushima has been
operating favorably since it started power generation.
We will continue to reduce environmental risks tohelp conserve the global environment and contributeto society as we aim to conduct environmentallyfriendly manufacturing.

Changes in the amount of our CO2 emissions(based on the figure for Fiscal 2011 set to 1.0)

Rate of emissions per production volume

Total amount of emissions (1,000 tons of CO)

Changes in our electricity consumption(based on the figure for Fiscal 2011 set to 1.0)

Rate of consumption per production volume

Total consumption (Million kWh)

400

2.0

500

2.0

300

1.5

375

1.5

200

1.0

250

1.0

100

0.5

125

0.5

0

0

0

2011

2012

2013

2014

Changes in our fuel oil consumption

2015(based on the figure for Fiscal 2011 set to 1.0)

Rate of consumption per production volume

Total consumption (1,000L)

2011

2012

2013

2014

Changes in our natural gas consumption

2015

0

(based on the figure for Fiscal 2011 set to 1.0)

Rate of consumption per production volume

Total consumption (1,000 m3)

4,000

2.0

10,000

2.0

3,000

1.5

7,500

1.5

2,000

1.0

5,000

1.0

1,000

0.5

2,500

0.5

0

0

0

2011

2012

2013

2014

Changes in our gasoline consumption

2015(based on the figure for Fiscal 2011 set to 1.0)

Rate of consumption per production volume

Total consumption (1,000L)
200

2.0

150

1.5

100

1.0

50

0.5

0

2011

2012

2013

2014

2015

2011

2012

2013

2014

2015

0

* R esults of the Vietnam Plant and Ishinomaki Branch Factory areincluded in the data from Fiscal 2012 and Fiscal 2013, respectively.
* Although the volume of energy consumption has recently increased
due to growth in production volume, the rate of consumption per
production volume remains unchanged.

0

Examples of energy saving improvements
An example at the Vietnam Plant

Prevention of Global Warming
Meiko views the issue of greenhouse gases as a significant threat to our
precious earth. Efforts to prevent global warming constitute energy saving
activities to reduce the amount of CO2 emissions generated from energy
consumption.
We have formulated and promoted the annual plans and the medium-tolong term plan to reduce the amount CO2 emissions in accordance withlaws and regulations not only in Japan but also in overseas plants, throughwhich we promote global activities to prevent global warming.
In Fiscal 2015, we could reduce a small amount of CO2 emissions by theexamples of energy saving improvements presented in this report andother similar efforts. We will continue working toward the goal of reducing
the amount of CO2 emissions in accordance with the aforementioned plansby promoting further efforts.

Three steam boilers supply steam to the plant.
Although we are already using the system to control the number of boilers
in operation and combustion based on the demand for steam, we achieved
further reduction of the amount of consumption of fuel by reviewing thepressure control of steam and the number of boilers on standby.
Reduction in CO2 emissions per year

1,070 tons (23.5% reduced compared to the past)
Steam boilers

An example at Thang Long Plant

Energy Saving Committee

Six compressors supply compressed air to the plant.
Although we used to set the delivery pressure at high for facilities thatneed high pressure air such as drill machine, we were able to reduce theamount of electric power to operate the compressors by making adjustments
to boost pressure at each facility and reviewing the level of air pressure foreach facility.
Reduction in CO2 emissions per year

147 tons (21.4% reduced compared to the past)
Compressors

19

CSR Report2016

20

ENVIRONMENT REPORTENVIRONMENT REPORT

Cyclical Use of Resources

Preventing pollution of the ecosystem
Measures for Reducing Environmental Burdens

Water consumption
A large amount of water is used in the manufacture of PCBs forcleaning. We have reduced the amount of water used bymanaging the amount used at each facility and using reverse
osmosis (RO) water*.
We continue to carry out efforts to use the minimum amountof water required to maintain product quality in each process
and to use discharged water through the introduction of a RO
concentrated water system. These efforts have proven effectivein achieving reductions.

Changes in our water consumption(based on the figure for Fiscal 2011 set to 1.0)

Rate of consumption per production volume

Total consumption (1,000 m3)

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

10,000

2.0

7,500

1.5

5,000

1.0

Activities for reducing environmentally hazardous emissions

2,500

0.5

We control the quality of the water we discharge and the state of the gases we emit into the atmosphere by measuring
them on a regular basis to help maintain the local environment. The table below shows the levels of the substances wehave emitted from our plants, all of which are below the standard.

0

2011

2012

2013

2014

0

2015

* RO water refers to water purified using reverse osmosis. It is used for cleaning the
PCBs.

Paper consumption

Measured values for discharged water quality and atmospheric measurements

We have been making comprehensive efforts by employing
electronic media for all company data, eliminating unnecessary
copying, and introducing electronic certification system, etc., tohelp protect forest resources.

Reduction and recycling of waste

Changes in our photocopying paper consumption
12,000

2.0

9,000

1.5

6,000

1.0

3,000

0.5

0

We have been reducing waste based on the 3R strategy (reuse,
reduce, and recycle). Continuing on from Fiscal 2014, efforts
were actively made to recycle waste into valuable resources. The
recycling rate of waste, the percentage of waste that was used
for purposes other than landfill, exceeded 99% at our plants inJapan in Fiscal 2015.

Water quality(based on the figure for Fiscal 2011 set to 1.0)

Rate of consumption per production volume

Total consumption (thousand sheets)

2011

2012

2013

2014

2015

Plant name

Kanagawa
Plant

Yamagata
Plant

Ishinomaki
Factory

Examples of waste reduction efforts

Internal resource recovery
Guangzhou
Plant

We collect resources from some industrial wastes generated in
our plants through treatment plants and facilities establishedwithin the premises of the Company.
1. Collecting gold from gold plating waste liquid
2. Collecting copper from soft etching waste liquid
3. Collecting copper carbonate and copper sulfate generated
from copper collected from etching waste liquid

The cyclical use of resources prevents the exhaustion of natural
resources and contributes to the protection of the global
environment.

BOD

COD

SS

Measurement
unit

—

mg/L

mg/L

mg/L

Actual value

7.27

12.6

17.8

—

Standard value

5.7-8.6

25

25

70

Measurement
unit

—

mg/L

mg/L

mg/L

Actual value

6.65

12.1

9.1

0.9

Equipment

Steam boilerStandard value

5.8-8.6

25

25

70

Measurement
unit

—

mg/L

mg/L

mg/L

Actual value

6.80

8.5

8.8

2.0

Standard value

5.8-8.6

25

160

60

Measurement
unit

—

mg/L

mg/L

mg/L

Actual value

6.84

17.1

16.6

3.7

Standard value

5.8-8.625(20)

160(120)60(50)

Measurement
unit

—

mg/L

mg/L

mg/L

Actual value

6.98

5.1

74.0

17.0

Standard value

6-9

300

500

Measurement
unit

—

mg/L

Actual value

7.01

Standard value

Substance

Nitrogen oxide
Soot and dust concentration
concentration(NOx)

Measurement
unit

g/m3N

v/vppmActual value

0.001259

0.3Standard value (Air Pollution
Control Act)
Measurement
g/m3N
unit
Steam boiler

Actual value

0.00400.3
Standard value (Air Pollution
Control Act)
Measurement
g/m3N
unit
Steam boiler

Actual value

0.00400.3
Standard value (Air Pollution
Control Act)
Measurement
g/m3N
unit
Steam boiler

Actual value

0.01200.3
Standard value (Air Pollution
Control Act)
Measurementmg/m3N
unit

180(Air Pollution
Control Act)v/vppm58
180(Air Pollution
Control Act)v/vppm63
180(Air Pollution
Control Act)v/vppm46
180(Air Pollution
Control Act)mg/m3N

Actual value

14.3

123

400

Standard value

National std:
100
Local std:80

400

mg/L

mg/L

Measurement
unit

mg/m3N

mg/m3N

6.1

21.1

18.0

Actual value

17.2

128

6-9

20

80

50

Standard value

50

400

Measurement
unit

—

mg/L

mg/L

mg/L

Measurement
unit

mg/m3N

mg/m3N

Vietnam Plant Actual value

7.16

7.9

16.5

5.1

Actual value

41.8

65

Standard value

6-9

30

75

50

Standard value

200

850

Wuhan Plant

Photo: Soft etching waste liquid processing equipment inGuangzhou Plant.

pH

0

Fukushima
Plant* “Recycling” above includes thermal recycling* The recycling rates at our plants in China (Guangzhou and Wuhan) and Vietnam(Vietnam and Thang Long) are excluded.

Atmosphere

BoilerSteam boiler

Boiler* The water quality measurement items are partial disclosures of the living environment items of the Water Pollution Control Act.
* The water quality measurement values are average values.

21

CSR Report2016

22

ENVIRONMENT REPORTMANAGEMENT REPORT

Table showing environmental burdens
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 2015. We will aim to achieve greater by accurately classifying the inputs into
energy, water, materials, and chemical agents, and the outputs into atmospheric release, water discharge, waste andresources, and recycling.

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

Environmental burdens of our business activities
Scope: Headquarters and the 7 major plants Period: Fiscal 2015 (April 1, 2015-March 31, 2016) Outline of business: Manufacture of PCBsINPUTOUTPUT

Corporate GovernanceElectricity(MWh)441,088

CO2 emissions(kt)429

Heavy oil(kl)1,128

NOx emissions(t)105Natural gas(km3)

9,748

Soot and dust(t)6.3Light oil(kl)2,400

PRTR substances(t)3.6

Our organization

Gasoline(kl)108

3

Water(km )9,884Discharge into PRTR substances(t)water table

0.21

Photocopying paper(thousand sheets)

8,015

At the Meiko Group, the Board of Directors and the
Executive Board is the principal decision-making body.
Our auditors audit and check the execution of duties
by each Director and Executive Officers in accordance

Chemical substances PRTR substances(t)329Energy input

Resources

AtmosphericreleaseChemical
substances

3,435
Amount of waste
generated(t) (in Japan only)
PRTR substances(t)with the policies of our Board of Auditors. The Internal
Audit Department improves and expands our internal
check system and ensures that corporate governanceand compliance function effectively based on the policy
for our internal control system.

18

Corporate Governance Framework at Meiko
Shareholders’ Meeting

Management of Chemical Substances Contained in Products
Appointment/
Dismissal

In accordance with our Environmental Action Guidelines, we strictly manage our production process in accordancewith our chemical substance control rules that stipulate prohibited substances to ensure that our products do notcontain hazardous substances prohibited by the RoHS Directive and other laws and regulations. We request that ourbusiness partners submit environmental data such as guarantees of non-use and analysis reports, so that we canproperly communicate this information in response to our customers’ requests for research.

Appointment/
Dismissal

Accounting Auditor

Board of Directors

Environmental data
Guarantee of non-use
Tables of ingredients
Analysis reports

Cooperation

Meiko• Chemical substance control for purchased goods(Green procurement standard)• Environmental assessment of business partners• Environmental data management• Product environmental survey

Environmental demands
Communication of information

Risk Management Committee

Internal auditing

General Affairs Headquarters

Accounting Headquarters

Sales Headquarters

Quality Assurance Headquarters

Production Headquarters

Research and Development Group

Affiliated companies

Nguen Ba Cuong

Internal Audit Department

Compliance Committee

Employee’s VOICEThe Thang Long Plant began operations in September 2014 after passing theVietnamese government’s environmental assessment. In April 2015, the plant acquired
the ISO 14001 certification.
Currently, I am engaged in environment-related jobs which include the operationof wastewater and exhaust treatment facilities, efforts for waste reduction, proper
disposal of waste and energy conservation. Through these efforts to reduce theenvironmental burden, I would like to contribute not only to our plant but also to thebetterment of Vietnamese society.

President & CEO

Internal Control Committee

Rules for chemical substances contained in products* RoHS Directive: An EU regulation on hazardous substances used in electrical and electronic equipment* ELV Directive: An EU directive aimed at reducing the burden of end of life vehicles (ELV) on the environment* REACH Regulations: An EU regulation aimed at protecting people’s health and the environment Chemical substance

23

Supervision

SelectCustomers

Business partners

Environmental audit

Board of Auditors

Executive Board

Supervision

Management system for chemical substances contained in products
Environmental contract

Appointment/
Dismissal

Manager, Production
Engineering Section
Thang Long Plant

CSR Report2016

24

MANAGEMENT REPORTMANAGEMENT REPORTInternal Control
Major Activities in 2015
‌Compliance with J-SOX‌Performed J-SOX evaluation of Chinese subsidiaries

Measures for Ensuring Compliance
Future Plans

Major Activities in 2015

‌
Facilitate
and implement internal controls on consolidated overseas
subsidiaries‌
Providedmonthly updates showing examples that are helpful incompliance promotion activities on Meiko’s internal website(examples are provided in easy-to-understand formats such as“e-mail magazines” and “four-frame cartoons”)E‌ xpanded J-SOX evaluation to subsidiaries in Vietnam and the UnitedStatesMeiko’s corporate governance system includes external directors, auditors as corporate monitoring function,accounting auditors, and the Internal Audit Department for ensuring fair management and high level oftransparency. These coordinate with each other to establish corporate governance. Internal control, as part ofcorporate governance, is essential for ensuring increased management efficiency and the fairness of all company
activities. The effectiveness of Meiko’s internal control is evaluated, and the results of these evaluations are used tomake further management improvements. This is our mission to fulfill our corporate social responsibility and we, as
the Meiko Group, will promote these activities.

Internal Control System

Internal control concerning financial reporting

Our Board of Directors passes resolutions and seeks torefine 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.

Under its Basic Policy on Internal Control System andaccording to the Practice Standards for Management
Assessment and Audit concerning Internal Control overFinancial Reporting set by the Financial Services Agency,
Meiko developed policies and plans concerning thepolicy, procedures and methods for evaluating ourinternal control, the framework of evaluations, the scopeof evaluations, evaluation schedules and recording andstorage of evaluation results, and we have set a framework
for evaluations led by management. In line with thesepolicies and plans, following Fiscal 2014, we evaluated theeffectiveness of our Companywide internal controls(including account settlement and financial reporting
processes) that could have a substantial effect on ourconsolidated financial reporting once again in Fiscal 2015.
As a result of this evaluation, we stated that “Our internal
control over financial reporting has been effective” in ourinternal control report for Fiscal 2015 and received
appropriate opinions from our auditors.

Basic Policy on Internal Control System
1. A system for ensuring that the duties of our Directors
and employees comply with laws and regulations
and our Articles of Incorporation
2. A system for storage and management of information
concerning the execution of duties by our Directors
3. A system regarding rules, etc., on the managementof the risk of loss
4. A system for ensuring that the duties of our Directors
are executed efficiently
5. A system for ensuring proper operations by the
Meiko Group6. Matters relating to employees if their placement has
been requested by Auditors to assist with their duties
7. Matters relating to the independence of employees
assisting with the duties of Auditors from Directors
8. Matters relating to ensuring the effectiveness of
directions from Auditors to employees assisting withthe duties thereof
9. A system for reporting to Auditors by Directors andemployees and other systems related to thereporting to Auditors
10. A system for ensuring that the person who hasreported to Auditors shall not be treated adversely
by reason of such report
11. M a t t e r s r e g a r d i n g t h e p r o c e d u r e s f o r t h eadvancement or indemnification of expenses arisingfrom the execution of Auditors’ duties and the policy
for processing of expenses or liabilities arising fromthe execution of other duties
12. A system for ensuring the effective execution ofaudits by Auditors

Internal Control of the Meiko Group in Fiscal 2015
Internal Control Committee

Board of Directors

Board of Auditors•A s s i s t a n c e i n
improving internal
control, preparations
for evaluations andcreation of reports• Passing resolutions on
internal control policies• Passing resolutions on the
improvement/promotionof internal control• Audits and validates ofthe effectiveness ofinternal control

President• Operations and directions concerning internal control• Confirmation of the effectiveness and coordination of internal control

Group companies’ departments responsible for implementing internal control

Future Plans‌Promote the training of compliance leaders

Meiko positions compliance as a critical aspect of management. Each of our employees complies with laws andordinances, 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 Handbook shows more specific compliance rules to be observed by the Company
and its employees.

Compliance Regulations

Compliance Handbook

The regulation rules, systems, and procedures regarding
compliance rules of the Company and its affiliates are
stipulated in the Compliance Regulations which explainsin detail the rules to be observed by the executive andemployees.

In order to raise awareness of compliance, theCompany´s own unique Compliance Handbook is
distributed to all executives and employees.

Compliance Manual (Areas Requiring Compliance)
1. Compliance for our customers(1) Confidentiality obligation (2) Sincere attitudes (3) Product liability(4) Eliminating inappropriate relationships with customers(5) Prohibiting transactions based on personal considerations
2. Compliance for our suppliers(1) Fair selection of business partners(2) Prohibition of requests for kickbacks(3) Prohibition of excessive gifts and entertainment(4) Prohibition of the reception of other conveniences and facilities
3. Compliance for our investors(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

Compliance Handbook

Provision of compliance education
At Meiko, we provide compliance education because webelieve that the idea of compliance will be effective 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 byproviding examples ofcompliance violations, in our
newsletters and on our in-house
website.

In-house newsletter

25

CSR Report2016

26

MANAGEMENT REPORTMANAGEMENT REPORT

Measures for Information Security

Introduction of the Help Line
VOICE from Person in Charge

We have introduced a whistleblowing system (Helpline),
which permits our employees to report violations or
possible violations of laws, ordinances, or otherregulations without hesitations. We protect informationand conduct fact-finding with particular care so as toprotect whistleblowers from any disadvantages.
Whistleblowers can choose to remain anonymous.

The Meiko Group complies with laws and ordinances,and internal regulations, led by the spirit of theCompany, encapsulated in our Business Principles andCorporate Charter. Our company activities place heavyemphasis on social and corporate ethics.
Our compliance initiatives are not meant merely toprevent misconduct and incidents, but to help us carryout our responsibilities as members of society, earning
the trust of our customers, shareholders, investors,
business partners, local communities, and employees.
We consider these compliance initiatives to be
essential to our continuing business operations.
Our Group has both large scale manufacturing sites
in China and Vietnam, as well as sales bases in theAmericas, Europe, and ASEAN countries. This is why it
is extremely important for us to cultivate a high levelof ethics and spirit of legal compliance worldwide.
We will continue coordination between thedepartments in charge at each of our sites andcommittees of experts, such as the Compliance
Committee, and provide
ongoing, systematic
education, training andawareness raising activities
aimed at both executives
and employees to build acompliance system well
adapted to changing
business and social
e n v i r o n m e n t s , t h e r e b y Naoki Saito
promoting our growth in a Deputy General Manager
h a r m o n i o u s w a y w i t h General Affairs Group
Human Resources & Generalsociety.
Affairs Department

Antisocial forces
Meiko refuses to have anything to do with any individuals
and organizations perceived as antisocial forces thatthreaten the social order and safety, not only its
attributes, but pursuit of economic gain using 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 accordancewith “Regulations for dealing with antisocial forces” andvarious “Manuals.”Compliance Organizations
The Compliance Committee has been established as anorganization that ensures compliance is being faithfully
conducted throughout the Meiko Group. The Committee
is convened regularly every year or as otherwise requiredby the Compliance Officer and Administrative Section(General Affairs Department), with activities focusing on
the Auditors and other responsible executives from
General Affairs Department, Human Resources
Department, and the relevant departments.

Major Activities in 2015
‌Responded
to the My Number System (by establishing regulations
and developing the safety management system)

Information Security Policy
Based on our Business Principles, we implement measures tostrengthen our information security system in order to protect
our customer information and information assets from threats
including fraudulent access, disasters and criminal acts. We also
take steps to raise awareness about information security amongst
the management and employees. To this end, we have set out
the following policy on information security and declare that, inline with our Business Principles, all management and employees
should devote concerted efforts to implementing these policies.
1. We pursue continuous improvement in our
information security system.
2. We provide every protection of our information
assets and continuously enhance the information
management function.
3. We comply with laws, ordinances, and norms andfulfill social responsibilities.
4. We conduct continuous education and training forthe management and employees.
5. We swiftly respond to a problem as soon as it occurs
and conduct risk management practices.

We take comprehensive measures to protect theconfidential information of our customer in accordancewith our Information Security Policy.

Board of Directors
Corporate lawyer

Reports

Board of Auditors

Audit
Instructions

Reports

Instructions

Compliance Committee
Administrative Section

Cooperation

Information Security Education
At Meiko, we hold an annual training program on
information security through e-learning and lectures so
as to ensure that internal rules are thoroughly complied.

Reports

Report Review Office
Reports

Instructions‌Renewed ISO27001 certification

Our business is the manufacture and sales of electronic PCBs. To continue our business, we believe that it is essentialthat our customers have faith that we properly manage customers’ important information. As a company-wide
initiative on information security, we have obtained ISO27001 certification in Information Security Management
System (ISMS), with which we will establish, maintain and strengthen information management systems with ourcustomers.

Protecting customer information
Organizational Chart on Compliance

Future Plans

Reports

Protection of personal information
To comply with laws concerning the protection of
personal information and to handle personal information
appropriately, Meiko has adopted the “Personal
Information Protection Regulations.” Based on theseregulations, we handle information with particular care.
In addition, Meiko has established policies and internal
regulations and developed safety management measuresin accordance with the guidelines prescribed by laws andregulations, etc. to cope with the My Number Systemthat was introduced from Fiscal 2015.

Past information security initiatives
At Meiko, we receive important information from
customers. We therefore recognize the importance of
information security, and the Information System Divisionof our Headquarters obtained ISO27001 certification in2006. Since then, we have been taking steps so that our
entire company can obtain the certification.
January
2006

The Information System Division of our
Headquarters obtained BS7799-2 certification.

October2009

Four applicable departments at Wuhan Plant in
China obtained the certification.

December2010

Six applicable departments at the Guangzhou
Plant in China obtained the certification

November
2012

Renewal of ISO27001 certification has been
completed for business locations in Japan.

December
2014

Transition to ISO27001:2013 certification has been
completed for business locations in Japan and six
departments of the Guangzhou Plant

February
2015

Transition to ISO27001:2013 certification has been
completed for four departments of the Wuhan Plant

Reporting Contact Office
Helpline
Departments and employees at Headquarters and affiliates
Information security lecture

27

CSR Report2016

28

MANAGEMENT REPORT

Corporate Profile (As of June 28, 2016)

Measures for Risk Management
Major Activities in 2015
‌Conducted safety confirmation drills twice during the year
‌Conducted a risk survey by a third-party organization

Headquarters 5-14-15, Ogami, Ayase, Kanagawa, Japan 252-1104

Established November 25, 1975

Production
Sites

Kanagawa Factory
5-14-15, Ogami, Ayase, Kanagawa, Japan 252-1104

CapitalFukushima Factory

Executives Yuichiro Naya

Future Plans

12,888.47 million yen	
1-2, Iwasawa, Kamikitaba, Hirono-cho, Futaba-gun, Fukushima

Director and Senior
Takahide Hirayama
Managing Executive Officer

Prefecture, Japan 979-0401‌ business continuity plans (BCPs) updated and re-organize theKeeprisk management system at each business site to properly address avariety of risks

Ishinomaki Branch Factory (Yamagata Meiko Electronics Co., Ltd.)
8-5, Shigeyoshi-cho, Ishinomaki, Miyagi, Japan 986-0844

Masakuni ShinozakiDirector and Senior
Managing Executive Officer

Yamagata Factory (Yamagata Meiko Electronics Co., Ltd.)
250, Maki, Yachi, Kahoku-cho, Nishimurayama-gun, Yamagata, Japan
999-3511‌Establish an information-gathering system using the internal network

Seiichi Naya

Director

Maren Schweizer

Director

Guangzhou Plant (Meiko Electronics (Guangzhou Nansha) Co., Ltd.)
No.2 Guangsheng Road, Western Industrial District, Nansha Economic
Technological Development Zone, Guangzhou, Guangdong
andProvince, P. R. China

Yoon Ho, ShinDirector

Hajime Nakano

Director

Wuhan Plant (Meiko Electronics (Wuhan) Co., Ltd.)
No.9 Shenlong Road, Wuhan Economic and Technological
Development Zone, Hubei Province, P. R. China

Hitoshi Iyomoto  Senior Corporate Auditor

MEIKO Research and Development Center
3-35-6, Sugikubo-minami, Ebina, Kanagawa, Japan 243-0414

Meiko has created a set of Crisis Management Regulations, and also BCP Basic Policy and Emergency Manual
thereunder, which assume a variety of risks associated with environments, disasters, quality and information security.
We have also created a Business Continuity Plan (BCP) for each of our factories 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 aserver at the Yamagata Factory 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 and take comprehensive
future measures, to quickly cope with risk and prevent reoccurrence.

Vietnam Plant (Meiko Electronics Vietnam Co., Ltd.)
Lot LD4, Thach That -Quoc Oai Industrial Zone, Hanoi
Thang Long Plant (Meiko Electronics Thang Long Co., Ltd.)
Lot J1-J2, Thang Long Industrial Park, Vong La Commune, Dong Anh
district, Hanoi City

Creation of Group BCP

Many risks could potentially affect the Meiko’s operating
environment, including risks of natural disasters such as
earthquakes and tsunamis, changes in the management
environment such as currency fluctuations and changes
in macroeconomic conditions, and country risk atoverseas bases relating to politics, economics, andinfrastructure. Meiko has created the Business Continuity
Plan (BCP) for each site in preparation for emergencies.
These plans describe various measures against relevantrisk factors, ranging from a consideration of risk
prevention measures to post-disaster recovery work.

Meiko conducts business impact analyses of various risk
factors, and creates manuals for each site setting therecovery time objective (RTO) and simulating initialemergency response systems. We will continue toregularly perform BCP reviews as well as simulation drills,
equipment and supply preparation, and employee
awareness raising in order to ensure that BCP can be
carried out smoothly.

Auditor

Main

Design, manufacturing and sales of PCBs,
associated electronics-related businesses
and mounting of PCBs

Business

Fiscal 2011

Fiscal 2012

Fiscal 2013

Fiscal 2014

Fiscal 2015

Net sales

(Millions of yen)

62,97260,70979,23190,895

95,287

Operating income(Millions of yen)

812

(605)

922

(2,865)

3,325

(%)

1.3

(1.0)

1.2

(3.2)

3.5

(Millions of yen)

222

(386)

1,931

1,075

(491)

Operating margin
Ordinary income
Ordinary income margin

(%)

0.4

(0.6)

2.4

1.2

(0.5)

Net income (loss) attributable to owners of the Company (Millions of yen)

1,158

(1,567)23(9,573)(11,250)

Net margin

(%)

1.8

(2.6)

0.0

(10.5)(11.8)(Millions of yen)

61.73

(83.52)

1.11(365.76)(429.83)

ROE(%)

3.4

(4.4)

0.1

(23.0)(33.7)

ROA(%)

1.3

(1.6)

0.0

(7.9)

(10.3)Net income (loss) per share

Changes in consolidated net sales

Changes in consolidated ordinary income

Changes in ROE/ROA(Millions of yen)
100,000(Millions of yen)
4,000

（％）

80,000Assistant Chief

60,000Local Response
Headquarters

Group in charge ofrecoveryGroup in charge of
operations measures

Group in charge ofGeneral affairs and humanresources

Division in charge of individual risks

79,23190,895 95,287

1,000

20,00000-1,000Fiscal 2011 Fiscal 2012 Fiscal 2013 Fiscal 2014 Fiscal 2015

Sales composition by application (Fiscal 2015)

3.4

0

1,931

2,000

40,000

ROE

10

3,000

62,972 60,709

222

△386

1.3

-10

1,075
△491

Fiscal 2011 Fiscal 2012 Fiscal 2013 Fiscal 2014 Fiscal 2015

Sales composition by customer´s national origin (Fiscal 2015)

-30
-40

Other than PCB 7%
Other PCBs
2%

Storage
5%0.0△7.9 △10.3

Sales composition by product (Fiscal 2015)

Europe andthe United States 7%
Korea 13%

△4.4

0.1

△33.7
Fiscal 2011 Fiscal 2012 Fiscal 2013 Fiscal 2014 Fiscal 2015

Other PCBs 12%
Automobiles
48%

△1.6

△23.0

China and ASEAN 12%

Digital audiovisualequipment
3%

ROA

-20

Other than PCB 7%

Smart phones 25%

29

Takashi Harada
9,491 (consolidated)(Japan: 786; Overseas: 8,705)
Employees:*As of March 31, 2016

M. D. Systems Co., Ltd.
4-9-14, Naka-machi, Atsugi, Kanagawa, Japan 243-0018

Chief of Emergency Headquarters (President & CEO)Risk Management Committee
Administrative Section
Group in charge ofcollection of company-wide
information

We introduced a safety confirmation system for all
employees in Group companies in Japan, as well as
employees stationed overseas, in order to confirm thesafety of employees and convey information in the eventof an earthquake with a seismic intensity of 5 lower orhigher, or other disasters or accidents. We perform
company-wide educational training twice a year toensure effective use of the system in the event ofdisasters.

AuditorFive-year Financial Summary

Emergency Headquarters

Introduction of employee safety confirmation system

Arifumi Sunada

No. ofMeiko Techno Co., Ltd.
1-14-1, Daikan, Yamato, Kanagawa, Japan 242-0025

Type of crises and risks

President & CEO

HDI PCB34%

Double-sided PCB
8%Four-layer PCB
33%

Japan 68%
Six-layer or more PCB 16%

CSR Report2016

30

Product Lineup that Meet the New Needs of Our Changing World
Meiko’s PCBs contribute to a richer society and more comfortable lives.
Heavy copper
PCB

AnyLayer PCB
AnyLayer PCBs are HDI PCBs which permit
unlimited connections between layers thanks to
cutting edge technologies such as ultraprecise
CO 2 lasers and filled plating.
These PCBs are mainly used insmartphones.

Heavy copper PCBs are usedin products which use large
amounts of electricity, suchas solar power generationequipment and highpowered eco-friendly car
motors. Their copper circuit
patterns are far thicker thanthose of conventional PCBs,
therefore they have improved
the heat dissipation capacity.

Double-sided/
Multi Layer PCB

Metal Base Heat Dissipation PCB
Metal base heat dissipation PCBs are long-lastingboards and are used for mounting
environmentally friendly LED chips. They are usedin home and office lighting, LCD television
backlights, and automobile headlights, etc.

There is a variety of double-sided, multi-layer PCBs, fromtwo layer PCBs to ten layer PCBs, from standard PCBs to
PCBs with special high heat dissipation or physicalcharacteristics, to suit a wide range of applications.

Embedded Passive Devices PCB

HDI PCBHDI PCBs are made by creating conductive
patterns on insulation layers, and then stacking
these layers to create a multi-layer board. The
ability to place wires above connections onother layers makes it possible to achieve highdensity and integration. These PCBs can beused in mobile phones, digital cameras, andother devices which require high density wiring
within a limited amount of space.

Embedded passive devices PCBs contain embedded
devices such as chip condensers and chip resistors.
They use the shortest possible wiring distance
between surface mounted ICs and embedded passive
device PCBs to improve electrical characteristics.

Module PCB
Module PCBs are ultra-thin HDI PCBs
which support bare chip mounting andhigh density mounting. They are used inpackage modules such as transmission
and camera modules.

31