MEIKO CSR REPORTM E I K O

C O R P O R A T E

S O C I A L

2014

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

Meiko’s CSR Declaration

01 Meiko’s CSR

In publishing the CSR Report 2014 (English version)

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

03 Message from the President

We published our sixth CSR Report 2014 (Japanese version) in late July. This
report has been organized to be comprised of the Message from the
President, Special Feature, Sociality Report, Environmental Report andManagement Report. We hope that many people will read this report, and willfind in the Report that we are united in a constant commitment to earn yourtrust by acting responsibly as a good corporate citizen.

05 Sociality 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.

15 Environmental Report
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 Products●Coverage

Meiko Electronics Co., Ltd. and affiliated companies■ CSR promotion framework
Our CSR promotion framework is made up ofsite-specific committee members representing●Reporting period

Board of Directors

CSR promotion framework

President & CEO

Area-specificcommittee members

CSR Officer

Site-specificcommittee members

individual plants, sales offices and otherNews Reports

Technology and Development Subcommittee

Supply Chain Subcommittee

Corporate Governance Subcommittee

Social Contribution Subcommittee

Human Rights and Safety Management Subcommittee

Risk Management Subcommittee

to input from our stakeholders.

Compliance Subcommittee

our CSR Declaration and respond in good faithInformation Security Subcommittee

all areas of the group’s operations in line with

Quality Assurance Subcommittee

makes it possible to organize activities covering

Environmental Management Subcommittee

members operating on a groupwide basis. This

Secretariat

p re m i s e s a n d a re a - s p e c i f i c c o m m i t te eThis report refers to CSR activities undertaken during Fiscal 2013 (April 1,2013 to March 31, 2014) as a rule. Sections outlining past activities however
may include details relating to before that period. Similarly, in order toprovide the very latest information, this report may also contain details
relating to April 2014 onwards.

22 Management Report
Corporate GovernanceInternal Control
Compliance
Information Security
Risk Management●Reference guidelines“Environmental Reporting Guideline (Fiscal Year 2012 Version)” (Ministry of
the Environment)“G4 Sustainability Reporting Guidelines”

28 Corporate Profile●Date of publication

This report: November 2014
* For the purposes of this report, "Meiko" refers to the Meiko Group as a whole, consistingof Meiko Electronics Co., Ltd. and its affiliated companies.

■ Conducting CSR activities throughout our value chain

Manufacturing and quality assurance
Recycle and reuse

Meiko fulfills its corporate social responsibility in the full range ofits business activities, through materials procurement and■ ISO26000 Comparison

Materials procurement●

For Local Communities→P13

manufacturing, as it delivers products to customers, and achieves
further improvements through research and development. By

Community
Involvement andDevelopment

Human
Rights●For Employees→P10

conducting consistent CSR activities throughout our value chain,
Meiko strives to
conduct its businessactivities in a manner●

worthy of the trust of all

For Customers→P5

ConsumerIssuesOrganizational
GovernanceCorporate Governance→P22
Internal Controls→P23●Compliance→P24●Information Security→P26●Risk Management→P27●

For Employees

→P10

●

relevant stakeholders.

●

Research and development●●

For Business Partners●

For Shareholders and Investors→P8
Marketing

Basic Environmental Plan→P15
System for Complying with Environmental Laws and Ordinances→P16●Prevention of Global Warming→P17
The
Environment ●●Cyclical Use of Resources→P19
Prevention of Contaminating the Ecosystem→P20●Management of Chemical Substances Contained in Products→P21
●

Sales

1

Labor
Practices→P12

Fair Operating
Practices

CSR Report2014

2

Message from the President

Meiko will continue to earn
the public’s trust throughcontributions to regions andcommunities.
President and CEO

Yuichiro Naya

A company is closely tied to the community, theregion, and to the earth, and must continue to exist
as a member of those social spheres. We at Meiko
respond sincerely to the issues in these spheres,always remaining aware of the role that we need tofulfill and what we can contribute in each. By doing
so, we seek to be accepted globally and locally and togrow to be a company worthy of the public’s trust.
Furthermore, we believe that it is an importantsocial responsibility to actively disclose our resultswith regard 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 food shortages
occurring around the world. These are challenges
common to all of humanity, and they requireinternational organizations, national governments,
companies that are active in each region, and all
individuals in society to work together to play theirrespective roles.
As a member of the global community, we at
Meiko are fully aware of the role we need to fulfill,
and are working earnestly to solve these problems.
In our environmental efforts, we are working on
research and development of technology that can
reduce the environmental burdens and risks produced
from our production processes, and enhance resource
efficiency in order to contribute to reducing theenvironmental impact on our society as a whole. For
example, we are pressing ahead with development of
new technology that greatly reduces the amount ofcopper and energy needed for the manufacturing ofprinted circuit boards (PCBs) and expect to utilize thistechnology in our mass-production of flexible PCBs
3

and heavy copper PCBs.
In our products as well, we quickly initiatedproduction of High Electric Current PCBs and Heat
Dissipation PCBs, essential for the various products,
such as photovoltaic power generation, hybrid cars,
electric vehicles, and LED lights, which will contributeto realization of an environmental society by reducing
the burden on the environment.
Our supply chain approach does not consist
merely of "procuring materials from low cost
countries," but takes into consideration resource
depletion and ecological degradation. In addition, weview the problem of conflict minerals from areas
beset by civil wars and ethnic conflicts as a pressing
human rights issue, and our Group policy is tocompletely eliminate the procurement of materials
that include conflict minerals in order to contributeto the resolution of these issues.
Here at Meiko, where our business ismanufacturing, quality of our products is one of our
key priorities. Once you start to have issues in termsof quality, not only do you lose all of the trust you
have earned, but you also cause problems forcustomers using your products as well as all otherstakeholders with an interest in the company.
Appreciating just how important quality is, we havecreated a Quality Policy committed to achieving
levels of quality and reliability that guarantee thehighest possible customer satisfaction.
Unfortunately, a fire broke out at Meiko’s Vietnam
Plant last year, disrupting supply of products andcausing considerable inconvenience for the

Meiko Group
Business
Principles

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.

customers involved. In order ensure that such
accidents do not happen again, we will re-inspect all
domestic and foreign plants to determine thepotential risk of fires or other hazards, and take steps
to prevent their occurrence.
Taking contribution to local community andsociety as a key priority, all of our employees act
under the recognition that Meiko´s efforts to create asustainable society are vital to earning the trust ofcustomers, investors, local communities and society
itself, and will continue to dedicate themselves topromoting such initiatives.
I look forward to your continued support andadvice in the future.

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 the creation of a sustainable society.
will develop and supply products and services that
1 We
are both useful to society and highly reliable in orderto guarantee customer satisfaction and earn theirtrust, paying full attention to quality, safety andcustomer data protection.
will strive to develop creative technology and pave
2 We
the way for new business in order to help create abrighter future.
will engage in fair, free and transparent competition
3 We
and fair trade and will maintain sound, healthy■ Stakeholders

relationships with political and administrative bodies.

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

will communicate with our shareholders,
4 We
customers, investors, business partners, employees
and other stakeholders and actively disclose corporate
information in a fair and timely manner to ensure that
our corporate activities are as transparent as possible.
will respect diversity and individual employee’s
5 We
personalities and ensure that all working
environments are safe, motivating and comfortable.
will reduce environmental impact and contribute
6 We
to the creation of a sustainable society, in recognitionof the fact that we all need to do our part to tackle
environmental issues.
will actively engage in social contribution activities
7 We
as a good corporate citizen, including research,

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

Employees
Enhancing corporate value
Adequate disclosure

Working together
with business partners
Reasonable andfair trade

Sustainable Society

Continuing to Enhance Corporate Value

Shareholders

Society

Sales

Manufacturing

Customerse d u c a t i o n , e nv i ro n m e n t a l p re s e r v a t i o n a n dcommunity services, and will resolutely oppose
antisocial individuals and organizations.

Business
Partners

Environment

Development

Local
Communities

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

will comply with all applicable rules, laws and8 We
regulations, at both the local and global levels, as partof our international business activities and will respect
local cultures and customs and contribute to thedevelopment.
will enforce this charter within the
9 Managementcompany, leading by example in recognition that it istheir responsibility to put the spirit of this charter into
practice, and raise awareness amongst groupcompanies and suppliers.
Management will continually monitor internal andexternal feedback, exercise effective governance andrigorously implement corporate ethics.

CSR Report2014

4

SOCIAL REPORTAt Meiko, we manufacture and sell PCBs, devices that are
essential for industrial development, by interacting with diverse
people in various countries, regions, and communities.
We recognize that we are social entity, and we fulfill our
responsibilities accordingly. At the same time, we giveconsideration to our stakeholders as we engage in our businessactivities.

For Customers

Initiatives for Quality Assurance

M a j or Ac ti vi ti e s i n 2 013

Fu tu re Pl ans

Under a zero shipment of serious defective products initiative, a significant reduction

Newly establish the Quality Assurance Headquarters with a viewin the number of defective product shipments to customers was achieved

to facilitating a cross-functional plant management program

The data on past problems concerning serious defective

Establish a company-wide quality check committee to promote active exchange of information about plants

products was successfully organizedEliminate crisis management defects

The development of a prototype for high temperature checkers was completed

Ensure and strengthen an organization-level approach to major complaints

Enhanced the company-wide 5M1E management and change point management.

Ensure and enhance change point management

Streamlined customer accreditation systems were fully recognized by all plants
Domestic ISO9001 and ISO14001 combined audit was conductedWe aim to develop the Meiko-wide standard that allows continual management of latest version of MES standards

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.
Our approach to quality assurance andorganizational efforts to ensure high quality

Quality Assurance System at MeikoPresident

In the Quality Policy, we have stipulated that we need tocontinuously improve the quality of our operations as wellas our products by ensuring that the CAPDo* operates inevery process of our operations. The CAPDo targets
continuous innovations in technologies and operations. In
terms of quality assurance, we assure the quality of all
products within the plant where they are manufactured. In
the middle of globalization, we intend to assure quality as
promptly as possible by strengthening our cooperation
with our plants and sales offices.
* CAPDo: Check-Act-Plan-Do cycle. The term “PDCA” is more commonly
used.

Quality Assurance Headquarters
Quality Assurance
Department

Production Headquarters

Structure enhancement, internal audit andQuality Management collection of company-wide information

Department

Setting quality assurance conditions and sharing past problem issues
CS operations

Improvement support
Manufacturing
indicators management

Meiko Group´s manufacturing plants
Products

Customers

Assurance of quality that meets customer needs
Horizontal deployment of the group’s
three overseas factories
Based on the Fiscal 2014 Group management policy, weare proceeding with a product quality assurance systemfor both overseas and Japanese factories that ensures our5Sociality Report

products meet our customers’ needs. Aiming at
enhanced quality assurance and management that
includes plants around the globe, we will implement
manufacturing practice to fulfill our customers’ demands.

Receiving awards from our customers
Received an award from DENSO Manufacturing Tennessee, Inc.
Meiko´s Guangzhou Plant received a supplier award fromDENSO Manufacturing Tennessee. Winners of the supplierawards for the year were announced on August 26, 2013, and
the Guangzhou Plant was honorably recognized for Excellent
Performance in the BODY MEXICO DIVISION for its quality,
price, and delivery time track record. DENSO Manufacturing
Tennessee also gives a Certificate of Merit for overall
evaluation, we will continue our efforts to receive the award
for Superior Performance in the future.

Acquisition of ISO9001 and
ISO/TS16949 certifications
At Meiko, we have obtained ISO9001 and ISO/TS16949
certifications, which are global standards, and have beenworking on continuous improvements.
The ISO9001 and ISO/TS16949 certifications we have obtained
ISO9001
Meiko Electronics Co., Ltd. obtained
certification for its PCBs.
Guangzhou Plant in China obtained
May 1,2002
certification.
ISO9001:2000 became the unified standard
Jan. 27,2003
in Japan.
Extended certification obtained by MD
Jan. 27,2003
SYSTEMS Co., Ltd. (Design of PCBs)
Nov. 29,2006 Wuhan Plant in China obtained certification
ISO9001 (Japan)
Extended certification obtained by Metal
Feb. 20,2008
Mask Dept.
Extended certification obtained by Tool
Jan. 27,2010
Department.
Jun. 18, 2010 Vietnam Plant obtained certification.
Jan. 15, 2014 Ishinomaki Factory obtained certification again
May 13,1997

ISO/TS16949
Apr. 19, 2004

Received an award from Fuji Xerox Co., Ltd.
We were recognized as a Premier Partner by Fuji Xerox Co., Ltd.
for the fourth consecutive year. Fuji Xerox selected its PremierPartners at the Fuji Xerox Procurement Partners´ Forum 2014
on April 25, 2014, and Meiko´s outstanding performance wasrecognized for the fourth consecutive year as a PremierPartner. We received continuing recognition due to being
awarded over a certain number of points on our evaluation in
the QCD category
for Fiscal 2013. The
four stars engravedon the golden
award plaque testify
to our four
consecutive wins.

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 2013, 50
companies answered the survey, responding to questions
about (1) product quality, (2) product prices, (3) productdelivery times, (4) service, and (5) technological response.
I n t h e i r c o m m en t s, m a ny c u sto m er s i nd i c ate dsatisfaction; 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.

Guangzhou Plant in China obtained
certification.

Mar. 22, 2011 Wuhan Plant in China obtained certification.
ISO/TS16949 (Guangzhou
Plant, China)

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 from TÜV Rheinland. The Vietnam Plant obtained
certification from Bureau Veritas Certification (BVC).

V

I C E

Employee´s VOICE
Quality assurance operations include product analysis. We
perform not only in-process product analysis, but also analysis
of products that have been delivered to customers. The work
must therefore be done swiftly and accurately. If analysis takes
a long time, it can cause worry and inconvenience forcustomers. Analysis results must be submitted quickly, and,because we are dealing with only one actual product, failure isunacceptable; if we fail, there is no way to investigate thecause. We are responsible for an important task that directly
impacts customer trust in our company.
I have been conducting product analysis for approximately
five years, confirming phenomena and estimating the natureof the cause from that. After leaving analysis operations, I will
be involved in inspection techniques, where I hope to use thetechniques and knowledge I´veacquired so f ar in analysis toinvestigate why defective products
were made, to identify the reasonsincidents happen and the reasons
they are not caught, and to put inplace thorough countermeasures. In
doing so, I will strive to deliver Meiko
Quality Assurance Headquarters
products that will satisfy customer Quality Management Department
needs for safety and security.
Takeshi Kojima

CSR Report2014

6Sociality Report

For Customers ── Research and Development
M a j or Ac ti vi ti e s i n 2 013

Fu tu re Pl ans

Developed ultrathin flexible MDiM PCBs (double-sided/four-layer)

Launch of ultrathin flexible MDiM PCB mass-production

Developed combined heavy copper PCBs

Production of the prototype of combined heavy copper PCBs and preparation of its mass-production

The Meiko Research and Development Center plays a role in developing printed wiring boards for the Meiko Group. The center´s development policy is to“halve the production costs through the development of environmentally-friendly, low-cost production methods & processes.” We are reviewing themethod of manufacturing printed wiring boards from all aspects, including materials, processes and waste treatment, with an eye to pressing ahead with
the initiative to reduce costs to minimum levels by adopting upstream operations, eliminating overlapping processes and reducing waste generation.

Development of
ultrathin flexible MDiM PCB
Meiko has succeeded in the development of ultrathin flexible
PCB, by proactively exploiting its superior feature, which allows asignificant reduction in its thickness. As a result, we havedeveloped an ultrathin PCB; the thickness of a double-sided
board measures 70 μm (Figure 1: 2/3 of conventional PCBs) and afour-layer PCB at 135 μm (Figure 2: 1/2 of conventional PCBs).
The MDiM PCB allows a direct fusion of copper with the resin
using molecular junction technology; this helps eliminate theneed for copper foil or adhesives applications, as used in the
manufacture of conventional PCBs, thus enabling a significant
reduction in board thickness. The four-layer PCB is a multilayer
flexible board. It is a highly effective solution to challenging
designs such as high precision wirings. By exploiting this specificfeature, we can manufacture this PCB using the HDI technique.
Meiko believes that it is able to contribute to the developmentof smaller, lighter and power-saving devices by delivering ultrathin and flexible PCBs, which are now an integral wiring board
particularly for wearable, healthcare and mobile devices.

to improve its combined heavy copper PCBs. We work to make the
combined heavy copper PCBs be a de facto world standard for PCBs
which can be used for power-controlled electric conversion units for
HV and EV, where we expect to see steady demand growth, as wellas units for converting natural energy into power.
Figure 1: Ultrathin double-sided flexible PCB
CVL-PIAD
Cu
Ｐ
Ｉ

Cross section of PCB (TH part)

Figure 2: Ultrathin four-layer flexible PCB

Figure 3: Combined heavy copper PCB
L1：50/200μm
L2：200μm
L3：200μm
L1：50/200μm

Development of
combined heavy copper PCB
The heavy copper PCB is a printed circuit board to conduct anelectric current up to 10A. It is principally used in power inverters, anelectronic device that changes DC into AC or voltage converters.
These devices are also loaded with a semiconductor; therefore they
have another PCB, which processes signals to control asemiconductor, meaning that they have two types of PCB unit.
Meiko not only succeeded in significantly reducing the amountof copper required for the manufacture of a heavy copper PCB toless than half of that for conventional PCBs but also developed a
combined copper PCB which is smaller in size and comprises thetwo types of PCB units as mentioned above.
We adopted the “additive process” to form heavy copper wiring
layers. As a result we have minimized copper waste. In addition, inthe conventional PCBs, only layers with same layer thickness areformed, but Meiko´s heavy copper PCB allows two different
thicknesses of layer, enabling the high electric current and signallines on a single PCB (Figure 3).
The Meiko Group will continue research and development efforts

7

500μm

Participating in exhibitions
During this fiscal year, in January 2014, Meiko took part in
the Printed Wiring Boards Expo.
At our booths, we demonstrated a combined heavy
copper PCB which helps lessen the burden on the naturalenvironment, and showcased other PCBs targeting thein-vehicle power electronics field and themicroelectronics field that caters to the demand forminiaturization and high performance as functions of thesmartphone.
A great manycustomers came to see
our booths and shared
their honest opinions
and requests, making
both events a great
success.
A scene of Meiko´s booth in the Printed Wiring Boards
Expo 2014

Sociality Report

For Business Partners ── Supply Chain
M a j or Ac ti vi ti e s i n 2 013

Fu tu re Pl ans

Established purchasing crisis management standards and carried out purchasing

Continue performing purchasing audits based on crisis

audits in an effort to minimize procurement risks (audited 22 companies in Japan)

management standards

Performed conflict mineral survey since October 2012,

Perform continued investigation for manufacturers forusing EICC standard format

whom sourcing locations are unknown

Performed environmental measure survey based on the latest version

Perform latest version management and clarify non-useof regulations such as REACH regulations <SVHC155 substances>guarantees

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 for 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 believe that themost important aspect of our procurement activities is toestablish win-win relationships and relationships 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 selectbusiness partners through a comprehensive assessmentof quality, delivery punctuality, price, and management,
as well as business continuity in case of an accident anda disaster under the basic principles of (1) understanding
our Basic Procurement Policy, (2) compliance with laws,
ordinances, and social norms, (3) environmental
protection and (4) exclusion of antisocial forces. In thisway, we are 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 of ac tivities for 2012 include
implementation of initiatives such as establishingpurchasing crisis management standards and carryingout purchasing audits in an effor t to minimize
procurement risks, conducting conflict mineral survey
based on EICC standard format, and environmental
measure survey based on the latest version of regulations
such as REACH regulations

Basic Procurement Policy
1. Procurement activities best suited to our global
production
2. Smooth, fair, appropriate procurement activities basedon closer communication and strengthened cooperation
with our business partners

1. Focus on green procurement, compliance with the green
procurement standard, provision of information
concerning “eco products”
2.		No idling
3.		Waste reduction
4.		Cooperation with contact in case of an emergency

3. Strengthened environmental measures (chemical
substances / green procurement)
4. Promotion of elimination of conflict minerals by supply
chainsCSR Report20148

Sociality Report

V

I C E

Business Partner´s VOICE
We are sincerely grateful to Meiko Electronics Co., Ltd. for theirpatronage of our company´s products in Japan and overseas. Basedon our cutting-edge technology and exhaustive quality
management, we have a long-lasting relationship stretching over 20
years with Meiko, one of today’s leading global companies in theprinted wiring board industry, where our PCB drills are used to makeholes in pre-processing of circuit boards, and our routers are used in
the final cutting of PCBs.
Global warming is the cause behind the abnormal weather ofrecent years, and CO2 reduction is a challenge for the whole world.
Union Tool Co. obtained environmental management system
ISO14001 certification in 2000, and in line with aggressive energysaving activities to reduce the electricity consumption that accounts
for 90% of CO2 emissions, we revised specifications for equipment
developed in-house and improved the efficiency of plant
equipment. We pursue our environmental initiatives under our basic
philosophy of “contributing to the rich global environment throughthe corporate activities of loving nature and human beings.”
As part of our environmental initiatives, we are working on green
procurement and the effective utilization of rare metals. The rare
metal tungsten is a key material in cemented carbide, which is usedin making our PCB tools. Action is required to reduce the use of
cemented carbide, a rare metal. Putting our technology to work, wedeveloped the coating drill, and reduced material costs byextending the product lifespan, with the aim of providing a productthat conforms to Meiko’s Basic Environmental Policy of “operating ina way that is compatible with ourliving environment.”
We will continue to pursue
activities that reduce theenvironmental burden through ourbusiness with Meiko, as we strive to
be a company mindful of the global
environment and to provide ecoTOOL CO.
friendly products. We look forward UNION
Sales Management Division
Overseas
Sales Section
to your continuing kind patronage.
Section Chief

Katsuaki Torigoe

Measures concerning purchasing
and procurement9

1. Fair, appropriate operations with business partners shall be
undertaken through compliance with laws and ordinances
concerning purchasing and procurement activities.
2. Business partners’ information that we obtain through purchasing
and procurement activities shall be kept confidential and theinformation security system for preventing the leakage ofconfidential and personal information shall be strengthened.
3. Entertainment and gifts for business partners shall be permitted
to the extent that would normally be considered reasonable,
but shall be prohibited if such acts result in personal profits.
4. Exclusion of antisocial forces shall be exercised.
5. With regard to the issue of child labor overseas, particularly in China, wehave prepared a written agreement prohibiting use of child labor for each of
our business partners. We sign the agreement with suppliers as necessary,and plan to create an updated version including stipulations regarding
employment of foreign workers, racial discrimination and other matters.

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 environmentallyhazardous substances to encourage the procurement ofcompliant products and maintain and improve theenvironmental quality of our products.
(1)	RoHS Directive : EU restriction on the use of certain hazardous
substances in electrical and electronic equipment(2)	ELV Directive : A directive adopted by the EU to reduce theenvironmental burdens of end-of-life vehicles(3)	REACH Regulations : EU law for protecting people’s health andthe environment(4)	JIG (1-R) : Legally controlled substances specified in the guidelines
concerning the disclosure of information regarding chemical
substances contained in electrical and electronic equipment(5) Customers’ standards
2. We encourage the signing of the Memorandum on
Environmental Protection and Guarantee of Non-Use of
E nv i ro n m e n t a l l y H a z a rd o u s S u b s t a n c e s t o e n s u reenvironmental protection together with our business partners.
We are pursuing the signing this Memorandum and Guaranteewith our major business partners, including manufacturers towhom we outsource processing.
3.	
We strive to reduce the discharge of industrial waste andencourage the use of this waste as a valuable resource by recycling
it or using it in other ways together with our business partners.

Internal control and compliance

Conflict-Free Procurement Policy

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 with our business
partners by undertaking internal training and confirming
compliance in relation to adherence to laws, ordinances,and social codes, including the Act against Delays in the
Payment of Subcontract Proceeds to Subcontracts inJapan, as well as compliance with customs regulations
and the relevant regional and national laws, ordinances,and social codes in our global procurement activities.

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. This launched a study on the minerals(gold, tin, tungsten, and tantalum) originated in the
Democratic Republic of the Congo and adjoining
countries to identify minerals of which trade profits maylead to human rights abuses and environmental
destruction. Meiko is eliminating conflict minerals fromits 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.

Sociality Report

For Employees ── Creation of a Comfortable Working Environment
M a j or Ac ti vi ti e s i n 2 013

Fu tu re Pl ans

Promoted the creation of a comfortable working environment and system for womenContinue promotion efforts

Cultivated next generation managers from mid-careerIdentify which specific values should be shared by all employees,

employees

and raise next generation leaders that epitomize these values

Enriched our systems for concentrated manufacturing

Continue manufacturing technology training, establishing manufacturing

technology training and self-development

plant operation methods as systematic methods for company-wide trainingImplemented TOEIC Institutional Test regularly, established anB egin management training for employees stationed

incentive system, and carried out language training courses

overseas or temporarily dispatched to overseas locations

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.

Employment and exchanges of global human resources

Respect for diversity
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, reduced work hour system is promoted for
those returning from maternity or parental leave. In Fiscal
2012, 9 employees took parental leave, 4 employees
returned to work, and 2 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 inaccordance with the Act on Encouraging the
Employment of Persons with Disabilities up until Fiscal
2009. In Fiscal 2010 and Fiscal 2011, however, we were
not able to meet the legal requirement, partly because
the overall number of employees increased. We achieved
the legally required number of employees withdisabilities in Fiscal 2012 and 2013.
C hanges in the number of our employees with disabilities and thenumber required by law (Fiscal 2009 – 2013)
Total Employees (Persons)
926
1,000
894

750
500
250
0

16
15

16
15

Legal requirement

824
15
14

803

Employees (Persons)
40

15
14

767

17
15

30
20
10

0
2009
2010
2011
2012
2013
(Note) Legally required number of employees with disabilities = Numberof permanent employees × Legal rate of employment (rounded down
to the nearest whole number)

Currently, approximately 33 employees from overseas
countries, including China, are working at Meiko’s
business establishments in Japan, while approximately
130 Japanese employees are working overseas. These
numbers have been increasing every year. In addition, as
of Fiscal 2012, a total of 152 persons had completed thelanguage and skill training in Japan intended for future
executives of our overseas subsidiaries, which has beenoffered every year since Fiscal 2003.

I C E
Parental Leave and Reduced Work Hour System User´s VOICEV

After giving birth in October 2012, I took the maximum year
and a half of parental leave because I was on a waiting list
for daycare, and returned to work in April of this year using
Meiko´s reduced work hour system.
When I joined Meiko, I never dreamed that I would one
day be raising a child while working. However, these days
many of my senior colleagues are mothers who, like me, areusing the reduced work hour system to do their jobs whileraising children, so I was also able to use the system without
any worries.
Of course there are things I missed while on leave, andmany new things to learn, so since I came back I struggle
every day to pick these things up as fast as I can in a limited
amount of time.
Even so, there are many occasions when I have to taketime off because somethingcomes up with the daycare orwith my child and this causes
inconvenience to my colleagues,
but everyone always helps meout. I t ’s tough at times, but
thanks to the use of this system, I
have a vibrant life every day
enriched by both wor k and Operations Management Department
raising my child.
Michiyo Mori

CSR Report201410

Sociality Report

V

I C E

Global Employee´s VOICE
I was hired as a new graduate in July 2011 at Meiko Electronics (Guangzhou Nansha) Co. Ltd.
For a year and a half after joining the company, I trained in the manufacturing, technology and quality
assurance departments, and came to Japan in May 2013.
In Japan, I did hands-on training for about a year at the Yamagata Factory, and am now responsible for
product analysis at the Quality Assurance Department at Headquarters and for English, Chinese, andJapanese translation of related materials.
When I came to Japan, I was deeply impressed by the serious and passionate attitude that Japanesepeople bring to their work.
Looking at them, I always feel in my heart that I must give my best efforts too.
Under the motto “For the best, try my best, do my best!” I will continue striving to exert my capabilities
to the maximum for our company´s development and to provide our customers with products of thehighest quality.

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 started 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).

11

Quality Assurance Department

Jiang Tengda

Job-class-specific training
New recruits

 Business simulation training
 Manufacturing and sales hands-on training and problem-solving

Mid-career
employees

 MBA (Meiko Board Academy) Cultivation of next generation management

Managerial
employees

 MAPS (Management Academy for Problem Solving) Problem solving capability improvement

Department
heads President school	Become 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

MAPS training for managerial employees

Sociality Report

Employee safety and health initiatives
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 ensure that problems are found efficiently, not tomention prevent work accidents, we have arranged forour 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 and improve the level of oursafety and health management.

Industrial Safety and Health Guideline
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 that issafe and secure for the mental and physical health of all
our employees, and allows them to fully demonstrate
their individual capabilities .
1. We will comply with the regulations and in-house rules
related to industrial health and safety as we endeavor toeliminate dangers in all workplaces.
2. We will conduct risk assessments for our workplaces, setgoals for work environment improvements andcontinually work toward reducing work accident risks.
3. We will ensure that each and every employee is aware ofindustrial safety and health initiatives as we endeavor to
improve awareness of safety and health.
4. We will endeavor to actively support the maintenanceand improvement of the mental and physical health of
our employees.

For Shareholders and Investors ── Improvement and Expansion of IR Activities
M a j or Ac ti vi ti e s i n 2 013

Fu tu re Pl ans

Held meetings including results briefings for institutional investors,

Continue holding explanatory meetings

analyst meetings, and small meetings, also made several investor callsContinue globalization and deliver valuable information for investors

Produced English versions of IR tools for foreign investors

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.

Timely and adequate disclosure of information
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.

we have begun to produce IR tools for foreign investors
in Fiscal 2012, such as convocation notice of theshareholders´ meeting, presentation documents,
shareholders´ report, documents for results briefing.

Enhancing IR tools
To provide a better understanding of Meiko, we haveenhanced the IR page of our website by providing amessage from the President and other content for private
investors, as well as an IR library that includes past andpresent financial statements and annual reports. In
addition, in light of increasing globalization of IR activities,

MEIKO REPORTCSR Report201412

Sociality Report

For Local Communities ── Social Contribution
M a j or Ac ti vi ti e s i n 2 013

Fu tu re Pl ans

I mplemented CSR activities addressing local issues at

I mprove information sharing to enable sites toeach site

implement activities performed at other sites, and createa framework which enables more employees toparticipate autonomously

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

Provision of internships for students fromlocal high schools and middle schools
Participation in blood donation
activities
Local clean-up activities / Yachi
Industrial Park
Wuhan

Fukushima

Local clean-up activities

Participation in an event held by the
Reconstruction and Employment Support Center
Participation in blood donation activities

VietnamHeadquarters and Kanagawa

Donation to fund for the repair workof an elementary school library inPhung Xa village
Sponsorship of a local wrestling
tournament (donated a laptop PC)
Presentation of gifts to the Son Tay
District Support and Care Center for
the Disabled

Assistance with the Ayase Commerceand Industry Fair organized by the
Ayase City Commerce and Industry
Association
Assistance with the Ayase Iki Iki
Matsuri Festival organized by the
Youth Group of Ayase City
Commerce and Industry Association
Assistance with the Spring
Tournament (Meiko Cup) of the
Ayase City Children’s BaseballFederation organized by the Ayase
City Children’s Baseball Federation
Provision of manufacturing practicaltraining for an external organization
Local clean-up activities/
Participation in a local event toclean-up around Koza District rivers

Guangzhou

Active employment of personnel
with disabilities (44 employees)
Participation in blood donation
activities

ActionBlood donation activities

1

Meiko is actively involved in blood donation activities at bases inJapan and overseas. The blood donation activity was conducted at
Fukushima Factory on March 25, 2014 in keeping with the annual tradition.
There have been comments from the staff about wanting to do what they
can as part of their contribution to society.

Blood donation activities at Fukushima Factory13

Sociality Report

Action2

Providing programs for local middle school and high school students

For the purpose of raising vocational awareness of students throughhand-on experience in actual society and increasing awareness of local
companies, we conduct hands-on work experience events and factory visits
every year for local middle school and high school students at Yamagata Meiko.
During Fiscal 2013 we invited students from three middle school and high schools.
Having experiences in the manufacturing process for Meiko´s PCBs, they could
understand first-hand the difficulty, importance, as well as the enjoyment of
manufacturing. We received valuable feedback from students after they completed theworkplace experience. Students commented how “I was very impressed and interested
as I watched how one small mistake could lead to a critical large mistake” and “I feltthat I really grew as I was able to do things on day two that I couldn’t do on day one.”
Action3Internship for Sagae Industrial High School

Gifts Donated to Support and Care Center for the Disabled

Following the Japanese tradition ofgiving “winter gifts,” the Vietnam Plant donated50 parcels containing sweets and seasonings
to a support and care center for the visually
impaired, which is run by the Tien Thuong
Cooperative in Son Tay City about 40 km fromthe plant. We will continue to engage in efforts
to support persons with disabilities throughactivities rooted in the local community.
Presenting gift parcels

ActionAssistance with the Spring Tournament of the Ayase City Children´s Baseball Federation

4

In the region where our Kanagawa Factory and Headquarters arelocated, Meiko has been donating funds to help with running of the
Ayase City Children´s Baseball Federation since Fiscal 2009.
This financial assistance is used to hold the spring tournament, where 10
children´s baseball teams made up of elementary school students from the city
show off the results of their daily practice as they vie for the Meiko Cup. Meikowill continue to contribute to local communities by supporting organizations
that help raise healthy young people through baseball.

The Meiko Cup is presented to children

V

I C E

Community’s VOICE
Since it was founded in 2007, Meiko Electronics Vietnam has actively contributed to the community in avariety of fields.
Its contributions to employment have been particularly notable, and many young people have begun
working at Meiko Electronics Vietnam, lowering the unemployment rate and boosting the economic
vitality of the area. It has also engaged in a wide range of other support activities, such as promoting local
culture and sports by building a new athletic field in the Lan Bun village and supporting education throughits donations of teaching materials, stationery, and study supplies to junior high and high school students.
During traditional Vietnamese holidays and New Year, Meiko employees also visited injured war veteransand their families.
On behalf of community leadership and residents, I would like to express my gratitude to Meiko
Electronics Vietnam for its tremendous role in the development of Phung Xa village and Hanoi City, andextend my hopes for its continued bold growth.

Thach That, Hanoi City
Chairman of Phung Xa
Village People’s Committee

Mr. Chu Van Bay

CSR Report2014

14

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

M a j or Ac ti vi ti e s i n 2 013

Fu tu re Pl ansHeld Energy Saving Committee meetings

Reduce CO2 emissions by 1% or moreReplaced fluorescent bulbs with LED bulbs



Maintained 99% or higher waste recycling rate (Plants in Japan only)

Add more hybrid vehicles to the company-owned vehicle fleet
Strive for 100% waste recycling rate

Utilized systems such as our waste exchange system toutilize disused items


Stayed abreast of the added SVHCs and performed supplier study

Stayed abreast of the added SVHCs and performed supplier studyBasic Environmental Policy“Meiko recognizes that protecting the global environment and committing
to clean air and water are critical responsibilities that we have for thegenerations that come after us.
We use resources effectively and operate in a way that is compatible with ourliving environment.”
Environmental Action Guideline
Meiko’s businesses include the pattern design
and manufacturing of printed wiring boards
and the manufacturing of metal masks, as wellas the development and manufacturing ofelectronic devices. We consider the implicationsof these activities for the environment, andemphasize the importance of reducing theirimpact in terms of prevention of global
warming, cyclical use of resources andprevention of contaminating the ecosystem.
In accordance with our basic environmental
policy, we fully comprehend the impact ourbusiness activities have on the environment.
We make every effort to prevent environmental
pollution and reduce our environmental
footprint through the following measures:

15

1.

2.
3.
4.
5.
6.
7.
8.
9.

Preventing
globalwarmingReusing
naturalresources

Preventing
pollution of theecosystem

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.
We contribute to environmental conservation by making efforts to conserve
resources and energy, reduce waste, and encourage recycling.
We will properly manage chemical substances in products so that the productdoes not contain harmful chemicals.
We properly manage chemical substances contained in our products andmake sure our products do not contain toxic chemical substances.
We properly manage chemical substances in the production process to limit
their usage and reduce their environmental impact.
We observe all laws, regulations, ordinances, and other requirements
concerning the environment.
We set environmental goals and objectives, conduct environmental
conservation activities, and strive to improve these activities.
We provide training and instruction to all our employees with the aim of
instilling a strong awareness of environmental conservation activities in them.
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

Environmental Report

System for complying with environmental laws and ordinances
To implement our Basic Environmental Policy, we have established an ISO environmental management system, andhave appointed a person responsible for controlling the environmental management system (EMS) at each plant inJapan and overseas. 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
President & CEO

General Manager Responsible for EMS (Japan)

General Manager Responsible for EMS (Guangzhou)

General Manager Responsible for EMS (Wuhan)

General Manager Responsible for EMS (Vietnam)

Internal environmental auditor from the ISO Promotion Secretary

Internal environmental auditor from the ISO Promotion OfficeInternal 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

Person responsible for EMS at Kanagawa Factory
Person responsible for EMS at Fukushima Factory
Person responsible for EMS at Yamagata Factory
Person responsible for EMS at Ishinomaki Factory

ISO14001 Promotion Secretariat at Headquarters
Management concerning ISO14001
Furthering environmental improvement and reducing waste

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
ISO9001Mar. 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

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 MeikoResearch and Development Center, Yamato
Technology Center, and Tool Department

June 18, 2010

Extended certification obtained by Vietnam Plant

Jan. 15, 2014

Ishinomaki Factory obtained certification again

ISO14001 Certificate for factories in Japan ISO14001 Certificate for Guangzhou Plant in China* The factories in Japan obtained certification from Japan
Electrical Safety & Environment Technology Laboratories(JET). The plants in China obtained certification from TÜV
Rheinland. The Vietnam Plant obtained certification from
Bureau Veritas Certification (BVC).
ISO14001 Certificate for Wuhan Plant in China ISO14001 Certificate for Vietnam Plant

CSR Report2014

16

Environmental ReportComplying 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 regions thatare 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 2013, we continued to take action
based on targets set using Fiscal 2010 as a benchmark.
In Fiscal 2013, in terms of energy, the amount ofelectricity consumed increased slightly from the previous
year, and in waste, emissions of plastic waste and sludge,
increased slightly on a per production volume basis.
Nevertheless, these are steadily trending downwards
when compared to the benchmarks. We aim to improve
production efficiency, conduct further energy saving
initiatives, and make steady reductions in per production
volume metrics.

General Manager Responsible for EMS
Managing Executive Officer

Junya Wada

Three years have passed
since the Great East Japan
Earthquake, and our threefactories in Tohoku havebeen active in restoratione f fo r t s . T h e I s h i n o m a k i
Factory suffered enormous
damage due to the tsunami,
but thanks to the united efforts of all of our employees,
the plant resumed operations in May 2013 and has
continued steady production since then.
The shutdown of nuclear power plants in Japanfollowing the earthquake has caused electrical supply
problems, which we have had to grapple with. In Fiscal
2013, we continued to make up for these electricalsupply shortages by reducing peak power usage,
adjusting room temperature, shifting operations tonight hours, and actively implementing other power
conservation measures.
In addition, we installed solar panels at the
Fukushima Factory in preparation for developing asolar power project (in the fall of 2015). With annual
power generation volume estimated at approximately
2.6 million kWh, we hope to contribute to the region
and to society through our efforts to spread andpromote renewable energy that is friendly to thenatural environment.
I n t h e f u t u re, we w i l l c o n t i n u e to re d u c eenvironmental risks in order to help conserve theglobal environment and contribute to society as we
aim to conduct environmentally-friendly
manufacturing.

Prevention of Global Warming
Meiko views the issue of greenhouse gas as a significant threat to our precious
earth. We have focused on the reduction of CO2 emissions, and to this end wehave held a regular Energy Saving Committee since Fiscal 2009 throughout thecompany via television conferences in which we share information on energy
saving improvement plans and improvement examples for each factory/plant.
Although the volume of CO2 emissions and energy and fuel consumption
increased in Fiscal 2013 amid growth in production volume, there is a
downward trend when this is converted to per production volume terms.
We will continue to reduce CO2 emissions with further initiatives, particularly
those involving efficient operation of facilities.

17

Energy Saving Committee

Environmental Report

Changes in the amount of our CO2 emission
Total amount of emissions(1,000 tons of CO2)(based on the figure for Fiscal 2009 set to 1.0)
Rate of emissions per
production volume

Changes in our electricity consumption
Total consumption(Million kWh)(based on the figure for Fiscal 2009 set to 1.0)
Rate of consumption per
production volume

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

400

0

2009

2010

2011

Changes in our heavy oil consumption

2012

2013

(based on the figure for Fiscal 2009 set to 1.0)

Total consumption(1,000ℓ)

Rate of consumption per
production volume

2009

2010

2011

Changes in our natural gas consumption
Total consumption(1,000m3)

2012

2013

0

(based on the figure for Fiscal 2009 set to 1.0)
Rate of consumption per
production volume

2.0

2.0

10,000

7,500

1.5

7,500

1.5

5,000

1.0

5,000

1.0

2,500

0.5

2,500

0.5

0

0

10,000

0

2009

2010

2011

Changes in our gasoline consumption

2012

2013

(based on the figure for Fiscal 2009 set to 1.0)

Total consumption(1,000ℓ)

Rate of consumption per
production volume

200

2.0

150

1.5

100

1.0

50

0.5

0

2009

2010

2011

2012

2013

2009

2010

2011

2012

2013

0

*	Guangzhou Plant switched from heavy oil to natural gas from Fiscal
2010.
*	Although the Miyagi Plant results are included in the data up until
Fiscal 2010, operations at the Miyagi Plant were suspended in Fiscal
2011 and 2012 due to the Great East Japan Earthquake.
*	Results of the Vietnam Plant and Ishinomaki Factory are included in thedata from Fiscal 2012 and Fiscal 2013, respectively.

0

Ex a mp l e s of energ y saving improvements
An example at the Yamagata Factory

An example at the Wuhan Plant

Utilization of compressor exhausts to raise the temperatureof a boiler feed tank. The heat from compressor exhausts
reduces the amount of steam generated by the boiler to afeed tank, thereby improving the fuel efficiency of the boiler.

The plant has introduced a system, with which, in winter, it
uses cold air outside to lower the temperature of cold
water before using a heat exchanger to produce chilledwater of lower temperature.
Cooling tower

Feed
tank

Feed water

BoilerSteam supply
Freezing machine

It is used to raise
the temperatureof a boiler feedtank.

Terminal equipment

With the system, the plant can
produce chilled water during thewinter months when the outside
temperature is low just by using
the cooling tower, without
operating a freezing machine;
the system is now expected tohelp the plant save energy.

Heat ex changer

Compressor

Compressed air supply
Newly-introduced equipment

Comparison in the amount of heavy fuel oil used (based on the results for thetwo months preceding and following the introduction of the equipment)
Before introduction

After introduction

74,000 L/month

68,000 L/month

8% reduction of fuel usage

Photo: Heat exchanger

Following this improvement, power consumption of the refrigeration
and air conditioning system at Energy Wing 1 during the winter months:

12,003.33 kWh/day x 50 days = 600,166.5 kWh

Energy reduction effect: 471,783.5 kWh/year

CSR Report2014

18

Environmental Report

Cyclical Use of Resources
Reduction and recycling of waste
We have been reducing waste based on the 3R strategy (reuse, reduce, and recycle). Continuing on from Fiscal 2011,
efforts were actively made to recycle wastes into valuable resources. The recycling rate of waste, the percentage of wastethat was used for purposes other than landfill, exceeded 99% at our plants in Japan in Fiscal 2012.
* “Recycling” above includes thermal recycling.
*	The recycling rates at our plants in China (Guangzhou and Wuhan) and Vietnam are excluded.

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 theminimum amount of water required to maintain product quality
in each process and to use discharged water through theintroduction of a RO concentrated water system. These efforts
have proven effective in achieving reductions.

Changes in our water consumption
Total consumption(1,000m3)(based on the figure for Fiscal 2009 set to 1.0)
Rate of consumption per
production volume

10,000

2.0

7,500

1.5

5,000

1.0

2,500

0.5

0

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

2009

2010

2011

2012

2013

0

Paper consumption
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.

Changes in our photocopying paper consumption(based on the figure for Fiscal 2009 set to 1.0)

Total consumption(thousand sheets)

Rate of consumption per
production volume

12,000

2.0

9,000

1.5

6,000

1.0

3,000

0.5

0

2009

2010

2011

2012

2013

Ex a mp l e s of waste redu c tion ef for ts
Vietnam Plant

Utilization of “copper carbonate recycling facility”

The Vietnam Plant has established a copper carbonate
recycling facility on its premises, with the aim of recovering
copper (by generating copper carbonate). (The facility went
into operation on July 1, 2013.)
Etching waste generated by the PCB manufacturing
process contains a high level of copper.
Therefore, the Vietnam Plant recovers copper (generally inthe form of copper compounds) by treating etching waste aspart of its initiative for cyclical use of resources.
Recoveredc o p p e r
carbonate issold in the
product
marketplace.
Reactor tanks (reacting process)19

Centrifuge

Process of a copper carbonate recycling facility

Etching waste
Neutralization

Hydrochloric acid contained in etching waste isneutralized with sodium hydroxide (caustic soda).

Reducing copper concentration

To induce stable chemical reactions, the concentration ofcopper is reduced to 90 to 95 g/L by the addition of water.

Reactions

Addition of sodium carbonate to induce chemical
reactions that generate copper carbonate.

Precipitation separation

Separate the precipitated copper carbonate
generated by chemical reactions.

Centrifugation

Using a centrifuge to separate water fromcopper carbonate.

Copper carbonate

0Environmental Report

Preventing pollution of the ecosystem
Measures for Reducing Environmental Burdens
Meiko is aware of the significance of the impact of its plant operations on the local environment and believe 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.

Activities for reducing environmentally hazardous emissions
We control the quality of the water we discharge and the state of the gases we emit into the 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.
Measured values for discharged water quality and atmospheric measurements
Water quality
Plant name

Kanagawa
Plant

Fukushima
Plant

Yamagata
Plant

Guangzhou
Plant

Wuhan
Plant

Vietnam
Plant

Atmosphere

pH

BOD

COD

SS

Measurement
unit

―

mg/L

mg/L

mg/L

Actual value

8.1

11.1

5.2

―

Standard
value

5.7〜8.6

25

25

Measurement
unit

―

mg/L

Actual value

7.1

Standard
value

Equipment

Substance

Nitrogen oxide
Soot and dust
concentration
concentration(NOx)

Measurement
unit

g/m3N

v/vppmActual value

0.003572

70

Standard
value

0.3
Air Pollution
Control Act

180
Air Pollution
Control Act

mg/L

mg/L

Measurement
unit

g/m3N

v/vppm

12.6

9.9

0.9

Actual value

0.009

48

5.8〜8.6

25

25

70

Standard
value

0.3
Air Pollution
Control Act

180
Air Pollution
Control Act

Measurement
unit

―

mg/L

mg/L

mg/L

Measurement
unit

g/m3N

v/vppmActual value

7.0

8.4

10.4

1.8

Actual value

0.007

63

Standard
value

5.8〜8.6

25

160

60

Standard
value

0.3
Air Pollution
Control Act

180
Air Pollution
Control Act

Measurement
unit

―

mg/L

mg/L

mg/L

Measurement
unit

mg/m3N

mg/m3N

Actual value

7.2

21.9

72.9

13.7

Actual value

17.7

134.3

Standard
value

6〜9

300

500

400

Standard
value

National std:
100
Local std: 80

400

Measurement
unit

―

mg/L

mg/L

mg/L

Measurement
unit

mg/m3N

mg/m3N

Actual value

7.4

7.8

19.6

21.7

Actual value

25.4

165

Standard
value

6〜9

20

80

50

Standard
value

50

400

Measurement
unit

―

mg/L

mg/L

mg/L

Measurement
unit

mg/m3N

mg/m3N

Actual value

7.7

15.8

54.6

9.6

Actual value

36.3

54.00

Standard
value

6〜9

30

75

50

Standard
value

200

850

Steam boiler

Steam boiler

Steam boiler

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.

CSR Report2014

20

Environmental 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 2011. 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.
Environmental burdens of our business activities
Scope: Headquarters and the 6 major plants Period: Fiscal 2013 (April 1, 2013 - March 31, 2014) Outline of business: Manufacture of PCBs

INPUTElectricity

Energy input

Resources

OUTPUT(MWh)

431,327

Heavy oil

(kℓ)

1,129

Natural gas

(km3)

10,111

Light oil 

(kℓ)

2,056

Gasoline

(kℓ)

137

Water

(km3)

10,297

Photocopying paper(thousand sheets)

6,067

Chemical substances PRTR substances(t)

CO2 emissions(kt)385

NOX emissions(t)115

Soot and dust(t)9.5PRTR substances(t)3.9Discharge into PRTR substances(t)water table

1.96

Amount of waste generated(t)3,343AtmosphericreleaseChemical substances Amount of chemical

16

substances discharged (t)345Management of Chemical Substances Contained in Products
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.
Management system for chemical substances contained in products

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

Meiko• C hemical substance control for purchased goods• Green procurement standard• Environmental assessment of business partners• Environmental data management• Product environmental survey

Environmental demands
Communication of information

Customers

Business partners

Environmental contract

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 substanceV
Employee´s VOICEThe Ishinomaki Factory, its environmental facilities included, sustained enormous damage in the Great East Japan Earthquake of March
2011. Although the factory resumed operations in May 2013, some of the environmental activities we had built up prior to the earthquake
were not functioning properly, and disposal operations for strong acids and value recovery from sludge have been inadequate.
The earthquake reminded us of the precious value of water and electricity. We are grateful that we
Ishinomaki Factorywere able to restart the factory, and hope to use the know-how we acquired before the earthquake to PCB Manufacturing Section
contribute to the local community and our customers, and to make the Ishinomaki Factory a place where Assistant Manager
Shuichi Abe
our employees can engage in their work with peace of mind.

21

I C E

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

Corporate GovernanceOur organization
At the Meiko Group, the Board of Directors is the principal
decision-making body.
Our auditors audit and check the execution of duties

by each Director in accordance with the policies of our
Board of Auditors. The Internal Audit Department
improves and expands our internal check system andensures that corporate governance and compliancefunction effectively based on the policy for our internal
control system.

Corporate Governance Framework at Meiko
Shareholders’ Meeting
Appointment/
Dismissal

Appointment/
Dismissal

Accounting Auditor

Appointment/
Dismissal

Board of Directors

Supervision

Board of Auditors

SelectSupervision
Cooperation

President & CEO
Internal Control Committee
Compliance Committee

Internal auditing

General Administrative
Headquarters

Operating
Headquarters

Sales
Headquarters

Quality Assurance
Headquarters

Production
Headquarters

Research andDevelopment Group

Associated Business
Headquarters

Internal Audit Department

Risk Management Committee

CSR Report201422

Management Report

Internal Control
M a j or Ac ti vi ti e s i n 2 013
Compliance with J-SOX
Performed J-SOX evaluation of Chinese subsidiaries in

Chinese language
Added a consolidated overseas subsidiary (Vietnam Plant)Fu tu re Pl ans
Prepare for J-SOX evaluation of the Chinese (Hong Kong)

subsidiary in Chinese language
F a c i l i t a te a n d i m p l e m e n t i n te r n a l c o n t ro l s o n
consolidated overseas subsidiaries

Our corporate governance system includes external directors, audit & supervisory board members as corporate
monitoring function, accounting auditors, and the Internal Audit Department for ensuring fair management andhigh level of transparency. These coordinate with each other to establish corporate governance.
Internal control, as part of corporate governance, is essential for ensuring increased management efficiency andthe fairness of all company activities. The effectiveness of Meiko’s internal control is evaluated, and the results ofthese evaluations are used to make further management improvements. This is our mission to fulfill our corporatesocial responsibility and we, as the Meiko Group, will promote these activities.

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

Based on these policies and plans, we again evaluatedin Fiscal 2013 the effectiveness of our Companywide
internal control (including account settlement andfinancial reporting processes) which would have asubstantial influence on our overall consolidated financial
reporting. Based on the outcome, we evaluated theeffectiveness of our IT control and internal control, whichis incorporated in our business process and executed in
an integrated manner (internal control concerningbusiness processes including account settlement,
financial reporting, sales and inventory management,
and purchases).
All issues with our internal control identified throughthe evaluation processes were rectified during the term.
As a result of these processes, we stated that “Ourinternal control over financial reporting has beeneffective” in our internal control report for Fiscal 2013,
and received appropriate opinions from our auditors.
We have submitted our internal control report andfinancial reports for Fiscal 2013 to the Kanto Finance
Bureau following a resolution by the Board of Directors.
Internal Control of the Meiko Group in Fiscal 2013

Internal control concerning financial
reportingInternal Control
Committee●

At Meiko, under the Basic Policy on Internal Control
System shown above, we developed policies and plansconcerning the policy, procedures, and methods ofevaluating our internal control, the framework ofevaluations, scope of evaluations, schedules of
evaluations, and recording and storage of evaluation
outcomes. We have established a framework forevaluations to be led by management. In this process, wefollowed the Practice Standards for Management
Assessment and Audit concerning Internal Control overFinancial Reporting set by the Financial Services Agency.

23

Assistance inimprovinginternal control,
preparations forevaluations,and creation ofreports

Board of Directors●●

Passing resolutions
on internal control
policies
Passing resolutions
on the improvement/
promotion of internal
control

Board of Auditors●

Audits andvalidates of theeffectiveness 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

Management Report

Measures for Ensuring Compliance
M a j or A c ti vi ti e s i n 2 013
Revised Compliance Regulations
Reviewed Compliance Handbook

Fu tu re Pl ans
Provide compliance education to all employees
R eview and revise the Code of Conduct based onCompliance Regulations

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
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.

Compliance Handbook
In order to raise awareness of compliance, the Company´s own
unique Compliance Handbook is distributed to all executives
and employees. At the same time, with a view to informing all
Company staff, the handbook can be accessed on our in-house
website. Further, we implement an education program usinge-learning for all employees to promote understanding.

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 andfacilities

Compliance Handbook

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

Provision of compliance education

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

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 thetime of quarterly settlement. In
addition, efforts are made toraise awareness by providing
examples of complianceviolations, in our newslettersand on our in-house website.

In-house newsletter

CSR Report201424

Management Report

I C E

V

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, andinternal regulations, led by the spirit of the Company,
encapsulated in our Business Principles and Corporate Charter.
Our company activities place heavy emphasis on social andcorporate ethics.
Our compliance initiatives are not meant merely to prevent
misconduct and incidents, but to help us carry out our
responsibilities as members of society, earning the trust of ourcustomers, shareholders, investors, business partners, local
communities, and employees. We consider these complianceinitiatives 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 the Americas, Europe, and
ASEAN countries, and our stakeholders possess an extremely
diverse set of values. This is why it is extremely important for us
to cultivate a high level of ethics and spirit of legal complianceworldwide.
We will continue coordination between the departments incharge at each of our sites andcommittees of experts, such as
the Compliance Committee, andprovide ongoing, systematic
education, training, andawareness raising activities aimed
at both executives andemployees in order to build aneven more robust compliance
Deputy General Manager ofsystem.
General 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
G eneral Affairs D epar tment, Human R esources
Department, and the relevant departments.

Masamichi Takahashi

Organizational Chart on Compliance
Board of Directors
Reports

Board of Auditors

監査
Instructions

Reports

Corporate lawyer

Compliance Committee
Administrative Section

Cooperation

Reports

Instructions

Departments and employees at Headquarters and affiliates

25

Instructions

Helpline

Whistleblowing

Management Report

Measures for Information Security
M a j or A c ti vi ti e s i n 2 013
Headquarters, Guangzhou, Wuhan: Renewed ISO27001
certification
Fu tu re Pl ans
Headquarters: Transition to ISO27001:2013

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 our information security is sufficiently reliable that we will never leak important
information.
As a company-wide initiative on information security, we have obtained ISO27001 certification in Information
Security Management System (ISMS), with which we will strengthen information management systems with ourcustomers.

Information Security Policy
Based on our Business Principles, we implement measures tostrengthen our information security system in order to protect ourcustomer information and information assets from threats including
fraudulent access, disasters and criminal acts. We also take steps toraise 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, in line with our Business Principles, allmanagement and employees should devote concerted efforts toimplementing these policies.
1. We pursue continuous improvement in our information security
system.
2. We provide every protection of our information assets andcontinuously enhance the information management function.
3. We comply with laws, ordinances, and norms and fulfill social
responsibilities.
4. We conduct continuous education and training for the management
and employees.
5. We swiftly respond to a problem as soon as it occurs and conduct risk
management practices.

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

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.

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.

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(expected to be completed).

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

CSR Report201426

Management Report

Measures for Risk Management
M a j or A c ti vi ti e s i n 2 013

Fu tu re Pl ans

 eld study sessions about the initial response in theHevent of disaster jointly with local residents’ associations
C onducted disaster drills with the use of a safety
confirmation system for each site

 erform regular company-wide safety confirmation drills
PEstablish measures against risks involved with each site,ranging from prevention to post-disaster

Meiko has created a set of Crisis Management Regulations and also Emergency Manual, which assume a variety ofrisks associated with environments, disasters, quality and information security. We have also created a BusinessContinuity Plan (BCP) to minimize impact on the customer's production plan in preparation for emergencies. As ameasure to prevent information related crises, we have set up a server 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.

Type of crises and risks
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.

Creation of Group BCP
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.

Introduction of employee safety
confirmation system
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. In the future, wewill perform company-wide educational training on aregular basis, including employees working outside theoffice, to ensure that all employees can make full use of
the system.

27

In the event of a disaster, it is necessary not only to recover our company
but to engage in the rehabilitation of the local area as a whole. With due
consideration of this, during this fiscal year, we conducted disaster drills
jointly with local residents’ associations focusing on various aspects ofactions and attitudes in the event of a disaster and methods of handlingdisaster prevention equipment. (Photo: A scene of a joint disaster drill
undertaken in the Kanagawa block)Corporate Profile(As of June 26, 2014)

Established November 25, 1975

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

12,888.47 million yen

Executives Yuichiro Naya

President & CEO

Seiichi Naya

Director and Senior
Managing Executive Officer

Takahide Hirayama

Director and Senior
Managing Executive Officer

Masakuni ShinozakiDirector and Senior
Managing Executive Officer

Fukushima Factory
1-2, Iwasawa, Kamikitaba, Hirono-cho, Futaba-gun, Fukushima Prefecture,
Japan 979-0401

Ishinomaki Factory
8-5, Shigeyoshi-cho, Ishinomaki, Miyagi, Japan

Yamagata Factory (Yamagata Meiko Electronics Co., Ltd.)
250, Maki, Yachi, Kahoku-cho, Nishimurayama-gun, Yamagata, Japan
999-3511

Kunihiko Sato

MEIKO Research and Development Center

Marc SchweizerDirector

3-35-6, Sugikubo-minami, Ebina, Kanagawa, Japan 243-0414

Director

Director

Yoon Ho, ShinYamato Office

Hitoshi Iyomoto

1-14-1, Daikan, Yamato, Kanagawa, Japan 242-0025

Senior Corporate Auditor

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

Hiroshi Tsukii

AuditorNo.2 Guangsheng Road, Western Industrial District, Nansha Economic andTechnological Development Zone, Guangzhou, Guangdong Province, P. R. China

Yasunobu Koshimura

AuditorNo. of
11,858 (Japan: 802; Overseas: 11,056)
Employees *As of March 31, 2014

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

Main

Vietnam Plant (Meiko Electronics Vietnam Co., Ltd.)Business

Lot LD4, Thach That -Quoc Oai Industrial Zone., Hanoi

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

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

Five-year Financial Summary
Fiscal 2009

Fiscal 2010

Fiscal 2011

Fiscal 2012

Fiscal 2013

Net sales

(Millions of yen)

69,82374,72462,97260,70979,231

Operating income(Millions of yen)

3,793

3,297

812

(605)

922

(%)

5.4

4.4

1.3

(1.0)

1.2

(Millions of yen)

2,695

2,127

222

(386)

1,931
2.4

Operating margin
経常利益
経常利益率
Net income (loss)

(%)

3.9

2.8

0.4

(0.6)

(Millions of yen)

1,828

(3,094)

1,158(1,567)

23

(%)

2.6

—

1.8

(2.6)

0.0

Net marginNet income (loss) per share

(Millions of yen)

107.39(166.32)

61.73(83.52)

1.11

ROE

(%)

5

(8.7)

3.4

(4.4)

0.1

ROA

(%)

2.1

(3.5)

1.3

(1.6)

0.0

Changes in consolidated net sales

Changes in consolidated ordinary income

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

(%)
10

80,000 69,823 74,724
60,00079,231
62,972 60,709

3,000 2,695
2,000

40,0001,000

20,000

0

0

Fiscal 2009 Fiscal 2010 Fiscal 2011 Fiscal 2012 Fiscal 2013

Sales composition by application (Fiscal 2013)
Other than PCB
7%Digital consumer
electronics 6%-1,000Smartphones
19%
Other PCBs 20%

1,931

5
0

222

△386

Fiscal 2009 Fiscal 2010 Fiscal 2011 Fiscal 2012 Fiscal 2013

ROA

5.0
2.1

3.4
△3.5

-5
-10

1.3

△1.6

0.1
0.0

△4.4

△8.7
Fiscal 2009 Fiscal 2010 Fiscal 2011 Fiscal 2012 Fiscal 2013

Sales composition by customer´s national origin (Fiscal 2013)

Sales composition by product (Fiscal 2013)

Europe andthe United States 7%

Other than PCB 7%
Double-sided PCB
9%Korea 11%
Automobiles
48%

2,127

ROE

China and ASEAN 6%

Japan 75%

Other PCBs 3%
Four-layer PCB
38%

Six-layer ormore PCB 16%
HDI PCB 27%

CSR Report2014

28

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

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 on otherlayers makes it possible to achieve high density
and integration. These PCBs can be used in
mobile phones, digital cameras, and otherdevices which require high density wiring within
a limited amount of space.

Metal Base Heat Dissipation PCB
Metal base heat dissipation PCBs are
long-lasting boards and are used for
mounting environmentally friendly LED
chips. They are used in home and officelighting, LCD television backlights, andautomobile headlights, etc.

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 usedin smartphones.

Heavy copper PCB
Heavy copper PCBs are used in products
which use large amounts of electricity, suchas solar power generation equipment andhigh powered eco-friendly car
motors. Their copper circuit
patterns are far thicker thanthose of conventional PCBs,
therefore they have improved
the heat dissipation capacity.

Module PCB
Module PCBs are ultra-thin HDI PCBs
which support bare chip mounting andhigh density mounting. They are used inpackage modules such astransmission andcamera modules.

Double-sided/Multi Layer PCB
There is a variety of double-sided, multi-layer PCBs, from twolayer PCBs to ten layer PCBs, from standard PCBs to PCBs withspecial high heat dissipation or physical characteristics, to suit awide range of applications.

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

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