MEIKO CSR REPORTM E I K O

C O R P O R A T E

S O C I A L

2015

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

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

INDEX

Editorial policy
In publishing the CSR Report 2015 (English version)

01 Meiko’s CSR

We published CSR Report 2015, our eighth CSR report, consisting of Message

03 Message from the President

from the President, Special Features, Sociality Report, Environmental Report and05 Special Feature 1

Management 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 your

MEIKO Solar Park Fukushima

trust by acting responsibly as a good corporate citizen.

Special Feature 2
Providing the RICOH Future House
with printed circuit boards (PCBs)
for educational purposes

Intended audience

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

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

09 Sociality Report

Coverage

For Customers
For Business Partners
For Employees
For Shareholders and Investors
For Local Communities

Meiko Electronics Co., Ltd. and affiliated companies
Reporting period
This report primarily refers to CSR activities undertaken during Fiscal 2014 (April 1,

19 Environmental Report2014 to March 31, 2015). Sections outlining past activities might include details

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

relating to prior periods. Similarly, to provide the latest information, this report

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

might also contain details occurring after April 2015.
Board of Directors

CSR promotion framework

President & CEO

Area-specificcommittee members

CSR Officer

Site-specificcommittee members

Environment)

representing individual plants, sales offices
News Reports

Technology and Development Subcommittee

Supply Chain Subcommittee

Corporate Governance Subcommittee

Social Contribution Subcommittee

Human Rights and Safety Management Subcommittee

stakeholders.

Risk Management Subcommittee

and respond in good faith to input from ourCompliance Subcommittee

operations in line with our CSR Declaration

Information Security Subcommittee

activities covering all areas of the group’s

Quality Assurance Subcommittee

wide basis. This makes it possible to organize

Environmental Management Subcommittee

committee members operating on a group

Secretariat

and other premises and area-specific

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

26 Management Report“G4 Sustainability Reporting Guidelines”

Corporate GovernanceInternal Control
Compliance
Information Security
Risk Management

Date of publication
This report: September 2015
* For the purposes of this report, “Meiko” refers to the Meiko Group as a whole, consisting of
Meiko Electronics Co., Ltd. and its affiliated companies.

32 Corporate Profile

ISO26000 Comparison
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●For Local Communities→P17

Materials procurement

Community
Involvement andDevelopment

Human
Rights●For Employees→P14

manufacturing, as it delivers products to customers, and achieves
further improvements through research and development. By
conducting consistent CSR activities throughout our value chain,

Organizational
Governance

Meiko strives to
conduct its business●

For Customers→P9

activities in a manner

ConsumerIssuesCorporate Governance→P26
Internal Controls→P27●Compliance→P28●Information Security→P30●Risk Management→P31

Labor
Practices●

For Employees

→P14

●

worthy of the trust of all●

relevant stakeholders.

Basic Environmental Plan→P19
System for Complying with Environmental Laws and Ordinances→P20●Prevention of Global Warming→P21
The
Environment ●●Cyclical Use of Resources→P23
Prevention of Contaminating the Ecosystem→P24●Management of Chemical Substances Contained in Products→P25●

Research and development
Sales

●

For Business Partners●

For Shareholders and Investors

→P12
→P16

Fair Operating
Practices●

Marketing

1

CSR Report2015

2

Message from the President

Seeking the trust of regions
and communities

Meiko Group
Business
Principles

President and CEO

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.

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 important social
responsibility to actively disclose our results withregard to these issues and to create greater value
through communication with our stakeholders.
Recently, for example, the earth has been facing
various challenges, including environmental
destruction, resource and energy issues, humanrights issues, and natural disasters and foodshortages. These are challenges common to all ofh u m a n i t y, a n d t h e y r e q u i r e i n t e r n a t i o n a lorganizations, national governments, companies thatare active in each region and all individuals in society
to work together to play their respective roles. As amember of the global community, we at Meiko are
fully aware of the role we need to fulfill and areworking earnestly on these challenges.
In our R&D efforts, we are working to develop
technologies that can reduce the environmental
burdens and risks produced from our PCB production
processes and enhance resource efficiency tocontribute to reducing the environmental impact on
our society as a whole. For example, we havesucceeded in developing a technology called MDiM
that greatly reduces the amount of copper andenergy needed for the manufacturing of PCBs. This
technology is expected to be applied in our massproduction processes.
In our products, we have proceeded with thecommercialization of various products, including
high electric current PCBs, high heat dissipation PWB,
high frequency PWB and high density SMT PWB.
These PCBs are important components for thephotovoltaic power generation, hybrid cars, electric3

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

Stakeholders

Employees

vehicles and LED lights that contribute to therealization of an environmental society or enablevarious functions relating to the safety and security ofdriving vehicles.

Working together
A company’s business revolves around interaction with thewith business partners
Enhancing corporate value
Reasonable andvarious stakeholders who have an interest in the company.
Sustainable Society
Adequate disclosure
fair trade
Continuing to Enhance Corporate Value
Here at Meiko, all of our employees around the world
Business
Shareholders
Sales
recognize that CSR is central to every aspect of our business
Partners
activities and fulfill their responsibilities at the local level as aSociety
Environment
member of society with the aim of establishing trust in the
Manufacturing
Development
company.

Customers

Our supply chain approach does not consist merelyof “procuring materials from low-cost countries” butalso takes into consideration resource depletion andecological degradation. In addition, we view the
problem of conflict minerals from and child labor inareas beset by civil wars and ethnic conflicts aspressing human rights issues, and our Group policy is
to completely eliminate the procurement of materials
from the relevant areas and companies.
In 2015, we started photovoltaic power generation inJune at the power plant construc ted in our
Fukushima Factor y in Hirono-cho, Fukushima
Prefecture, aiming to reduce the environmental
burden and build a sustainable society through theintroduction of renewable energy, while contributing
to the local community’s reconstruction after theGreat East Japan Earthquake. This photovoltaic power
generation system consists of 9,772 solar panels set
on land of about 40,000 m2 within the premises of
the Fukushima Factory and generates 2,600 MWh ayear, which is equivalent to the annual power
consumption of 720 typical households.
Taking contribution to local community and society
as a key priority, all of our employees act under therecognition that M eik o´s effor ts 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 and advice
in the future.

Local
Communities

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

Corporate Charter
The Meiko Group aims to become a useful presence to as many members of society as possible.
Acting in accordance with the following nine principles, we aim to act as a global company contributing to thecreation of a sustainable society.
will develop and supply products and services that are both useful to society and highly reliable in order to guarantee
1 We
customer satisfaction and earn their trust, paying full attention to quality, safety and customer data protection.
2 We will strive to develop creative technology and pave the way for new business in order to help create a brighter future.
will engage in fair, free and transparent competition band fair trade and will maintain sound, healthy relationships with
3 We
political and administrative bodies.
We will communicate with our shareholders, customers, investors, business partners, employees and other stakeholders anddisclose corporate information in a fair and timely manner to ensure that our corporate activities are as transparent
4 actively
as possible.
will respect diversity and individual employee’s personalities and ensure that all working environments are safe,
5 We
motivating and comfortable.
will reduce environmental impact and contribute to the creation of a sustainable society, in recognition of the fact that
6 We
we all need to do our part to tackle environmental issues.
will actively engage in social contribution activities as a good corporate citizen, including research, education,
7 We
environmental preservation and community services, and will resolutely oppose antisocial individuals and organizations.
will comply with all applicable rules, laws and regulations, at both the local and global levels, as part of our international
8 We
business activities and will respect local cultures and customs and contribute to the development.

9Management will enforce this charter within the company, leading by example in recognition that it is their responsibility to
put the spirit of this charter into practice, and raise awareness amongst group companies and suppliers. Management willcontinually monitor internal and external feedback, exercise effective governance and rigorously implement corporate
ethics.

CSR Report2015

4

Special Feature 1
Contributing to regions and communities through efforts to reduce the environmental burden

MEIKO Solar Park Fukushima

renewable energy sources. The town of Hirono is particularly

V·O·I·C·E from the local community
Mr. Satoshi Endo, Mayor of Hirono-cho, Futaba-gun, Fukushima Prefecture

suitable for solar power generation as it has abundantsunshine throughout the year and a nice and cool easterly
wind in the summer. As the mayor of Hirono, we are working

Meiko started photovoltaic power generation in June 2015 at the power plant constructedwithin the premises of our Fukushima Factory in Hirono-cho, Fukushima Prefecture, aiming
to contribute to regions and communities through reducing the environmental burden andbuilding a sustainable society by the introduction of renewable energy, while contributing
to the local community’s reconstruction after the Great East Japan Earthquake.
Our Miyagi Factor y,located in Ishinomakishi, Miyagi Prefecture,
was struck by theGreat East Japan
Earthquake and thetsunami. Due to thesubsequent accidents
at Tokyo Electric Power Company’s Fukushima No. 1
nuclear power plant, our Fukushima Factory in Hironocho, Fukushima Prefecture, became a restricted area. As aresult, the two factories were forced to shut down
temporarily.
After the restoration efforts, the Miyagi Factory, renamed
the Ishinomaki Factory, made a new start in May 2013.
Meanwhile, Hirono-cho, where the Fukushima Factory
stands, is 20 km from the Fukushima No. 1 nuclear power
plant. In April, immediately after the Earthquake, Hironocho was designated as an Evacuation-Prepared Area,
which enabled entry to the Fukushima Factory, leading
to the restart of operations in July. However, it will takemore time before residents feel safe coming back.
The total site area of the Fukushima Factory is 86,910 m2.
However, the area occupied by the factory buildings(3,600 m2), including wastewater treatment and otherfacilities and parking lots, accounts for only about onefourth of the total area. Although there was a plan toconstruct the No. 2 Factory on the unoccupied land, theplan was suspended because of the earthquake and thenuclear power plant accidents.
We have since discussed utilizing the unoccupied landwith something other than a factory. Considering thescale and shape of the land, we concluded that it would
be best to introduce a photovoltaic power plant, which

5would enable us to contribute to the local community byintroducing renewable energy to reduce theenvironmental burden, while ensuring business
continuity.
MEIKO Solar Park Fukushima occupies an area of about
40,000 m2 on the site of the Fukushima Factory. The
photovoltaic power generation system consists of 9,772
solar panels with a generating capacity of 2,492 KW. Itsannual power generation amounts to 2,600 MWh, whichis equivalent to the annual power consumption of 720
typical households.
By operating this photovoltaic power plant, we will
support Fukushima Prefecture and Hirono-cho in actively
promoting the spread of renewable energy, thepreser vation of the global environment and theformation of a sustainable society.

Overview of MEIKO Solar Park Fukushima
Installation area:

Estimated annual power generation:on our recovery from the disaster and it is a great pleasure to

Earthquake inflicted

see the MEIKO Solar Park Fukushima start operations here.

tremendous damage to all

The local community places many expectations on MEIKO Solar

companies situated in thePark Fukushima. It is expected to contribute to ensuring a stablelocal community. Amongenergy supply and addressing increasingly severe environmental

them, Meiko made great

issues, and to play a symbolic role in promoting the town’s

efforts to restore its factory

recovery programs and encouraging the reconstruction of disaster-and resumed operations in just four months after the disaster,afflicted companies in Futaba-gun. That would help enhance thebringing great hope for the disaster victims to rebuild theirimage of Hirono and likely attract companies to the community.

lives, for which I would like to extend my deepest gratitude.

Deepening the town’s collaborative relationship with Meiko’s

Fukushima Prefecture set forth a vision for promoting

Fukushima Factory, which is making aggressive efforts toward

renewable energy and aims to produce enough power toa positive future, we will continue to move forward to achieve

cover more than 100% of the prefecture’s energy demand fromthe restoration of the entire community.

did not restrict itself to the use of domestic panels; rather,

V·O·I·C·E from a project partner

it provided an option to use foreign-made panels, allowing

Mr. Taizo Suzuki, NTT FACILITIES, INC.

flexible adjustments to the construction schedule.
From MEIKO Solar Park Fukushima, you can have a viewthat symbolizes the transition of energy systems.
Beyond the vast expanse of solar panels, you can see
high-tension wires for offshore wind power generation,
an emerging renewable energy source of which

Hidetaka Maruyama,
General Manager ofGeneral Affairs
Division, Meiko
Electronics Co., Ltd.

experimental studies are being conducted by thenation. Looking beyond those, you can see the site
Mr. Taizo Suzuki,
NTT FACILITIES, INC.

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

Date power generation started: June 10, 2015

where an experimental facility for the decommissioningof nuclear plants is being constructed.

33,813 m2

Number of solar panels installed: 9,772
Generating capacity:

The Great East Japan

Allow me to begin by celebrating the completion of

MEIKO Solar Park Fukushima provides an at-a-glance

MEIKO Solar Park Fukushima.

view of photovoltaic power generation, a renewable

Since July 2013, I have engaged in the MEIKO Solar Park

energy source now in use; offshore wind power

Fukushima project, with earnest hope for the project’s

generation, a promising renewable energy source

success.

for the next generation; and nuclear power, which isI think this project’s success owes much to Meiko’s swift

disappearing from the world.

decision making, which enabled the timely start of plant

It is my hope that such a good locale for encouraging

operations at the earliest possible time.

thoughts on future energy options will lead to many

When the supply of domestic panels was in danger, Meikoapplications for environmental education at the park.

CSR Report2015

6

Special Feature 2
Contributing to the future of local communities, in tandem with customers

Providing the RICOH Future House
with printed circuit boards (PCBs) for
educational purposes

We were invited to thepre-opening event.
By courtesy of Ricoh, we were allowed to shoot the preopening event and received detailed information on thelearning laboratory within the RICOH Future House, where
Meiko’s PCBs are used.
Named COSCIE, the learning laboratory is designed todevelop “creators of the future” who can play a role in the
future development of scientific technologies and open up
their own possibilities. Through scientific education, thelaboratory programs encourage children to raise theirinquisitive, creative and cooperative minds so that they canfind their own future and deepen their thoughts on that.

Contributing to the future of local communities
Ebina-shi, Kanagawa Prefecture, a city close to the headquarters of Meiko, has been promoting a land readjustment
project on the west side of Ebina Station. The city of Ebina is also home to the technology center of Meiko customer Ricoh
Company, Ltd., which has started a new effort to help local development.
Ricoh’s effort is called the RICOH Future House. The house is designed to provide a place to encourage the creation of new
businesses for the future in collaboration with local communities.
On the third floor of the RICOH Future House, there is a technical learning laboratory for elementary and junior high school
students to inspire them to become future scientists and engineers. This laboratory holds various workshops, such as anelectronic engineering workshop to make robots, for which Meiko’s printed circuit boards are used. These PCBs areprovided for free as a contribution to the local community.

The laboratory provides various professional tools aswell as Meiko PCBs. Children can enjoy electronicengineering at the laboratory to experience the fun ofcreating something.

Designing and manufacturing PCBs for education
The PCBs used at the learning laboratory are manufactured at Meiko’s Kanagawa Factory.
Because they are intended for use by elementary and junior high school students, thedesign of the educational PCBs is fairly simple, but their manufacturing processes are thesame as those of the regular PCBs that will be on the market. Careful attention to quality isgiven throughout the manufacturing processes beginning with design and while they gothrough the processes at the factory. Improvement proposals from Meiko, such as rounding
the corners of PCBs to prevent injury, were also made.

V·O·I·C·E of a customer

Ms. Kaori Fujii RFH Promotion Group, UD Business Office, New Business Development Center, New Business Development Headquarters, Ricoh Company, Ltd.
The RICOH Future House (RFH) is a large four-story house. It is designed forpeople to gather and learn, growing themselves, and we hope that they will
Outer layer circuit pattern process

eventually create future businesses.
We are grateful to Meiko for its supply of PCBs upon agreement with thephilosophy of the RFH.
Meiko’s participation was highly encouraging as it made us feel that we were getting

V·O·I·C·E of the staff

Atsushi Hasegawa, Manager of 1st PCB Sales Dept.

Mr. Tetsuya Sakayori
Corporate Headquarters,
Ricoh Company, Ltd.

a like-minded partner to develop “creators of the future” who can play a role in the
future development of scientific technologies and open up their own possibilities.

Upon the request of Ricoh, we have decided to supply our
PCBs as teaching aids for children in the community. It is ourgreat pleasure to play a part in satisfying children’s curiosityand appetite for learning.
We wish great success for the RICOH Future House.

7

Ms. Kaori Fujii
RFH Promotion Group, UD Business Office, New
Business Development Center, New Business
Development Headquarters, Ricoh Company, Ltd.

Atsushi Hasegawa
Manager of 1st PCB Sales Dept.,
Meiko Electronics Co., Ltd.

CSR Report2015

8

SOCIAL REPORT

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

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

Receiving awards from our customers

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

Received an award from DENSO Manufacturing
Tennessee, Inc.

For Customers

Initiatives for Quality Assurance

Major Activities in 2014

Future Plans

The Quality Assurance Headquarters was established to reinforce
the company-wide quality assurance system. Meetings of theCompany-Wide Quality Check Committee were held once amonth to promote the rollout of information.

Continue the operation of the Company-Wide Quality Check
Committee to prevent the occurrence of defective products.

An internal audit of manufacturing processes was conducted toanalyze the strengths and weaknesses of each factory.

Continue to conduct the internal audit of manufacturing
processes.

The status of application of the Quality Management System(QMS) was confirmed, while the necessary support for thefactories to operate the system was provided.

Continue to check the status of application of the QMS and toprovide factory support.

The Standardization Committee was established to promote thecompany-wide standardization of the MES.

Continue the standardization of the MES through theStandardization Committee.

A process inspection method was established to prevent theoccurrence of defective products.

Ensure the confirmation of quality checks and promote thesharing of information between factories.

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

9

According to theannouncement of winnersof the supplier awards for
Fiscal 2014 from DENSO
Manufacturing Tennessee,
Meiko’s Guangzhou Plant
received the Certificate of
Merit from the BODY
ELECTRONICS DIV. and the
ELECTRONICS DIV. for its excellent product quality, priceand delivery time. We will continue our efforts so that we
can receive the premier “Superior Performance” award.

Received an award from Fuji Xerox Co., Ltd.

Fuji Xerox selected its PremierPartners at the Fuji Xerox
Procurement Partners’ Forum2015 on April 25, 2015, andM e i k o ’s o u t s t a n d i n g
performance was recognized
for the fifth consecutive year as
a Premier Partner.
The five stars engraved on the
golden award plaque testify to
our five consecutive wins.
At the same time, we won the
Bronze Award, from among thethree Awards—Gold, Silver andBronze—granted to suppliers
that received a certain level of
evaluation points.

Quality Assurance Efforts at Meiko Flow of Receipt of Orders / Manufacturing / Shipment
Design Quality

Manufacturing Quality

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

DR1

Final Pre-Production Check

DRBFM
Confirm theconditions andenvironment where
PCBs are used
Share past problems

Reliability
evaluation
Final quality
check
Process
capacity

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

Ability todeal withcustomers
Internal
audit ofmanufacturing
processes

Assurance of quality that meets customer needs
Horizontal deployment of the group’s three overseas factories
Based on the Fiscal 2015 Group management policy, weare proceeding with a product quality assurance systemfor both overseas and Japanese factories that ensures ourCustomer 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 2014, 40
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 th eir commen ts, ma ny cu stomers in d ica ted
satisfaction; 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.

SOCIAL REPORTSOCIALREPORT

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
May 13, 1997 Meiko Electronics Co., Ltd. obtained

certification for its PCBs.
May 1, 2002 Guangzhou Plant in China obtained
certification.
Jan. 27, 2003 ISO9001:2000 became the unified standard
in JapanJan. 27, 2003 Extended certification obtained by MD
SYSTEMS Co., Ltd. (Design of PCBs)
Nov. 29, 2006 Wuhan Plant in China obtained certification
Feb. 20, 2008 Extended certification obtained by Metal
Mask Dept.
Jan. 27, 2010 Extended certification obtained by Tool
Department.
Jun. 18, 2010 Vietnam Plant obtained certification.
Jan. 15, 2014 Ishinomaki Factory obtained certification
again

ISO9001 (Japan)

ISO/TS16949
Apr. 19, 2004 Guangzhou Plant in China obtained

certification.

Mar. 22, 2011 Wuhan Plant in China obtained certification.
Jan. 9, 2013 Vietnam Plant obtained certification* The plants in Japan obtained certification fromJ a p a n E l e c t r i c a l s a fe t y & E nv i ro n m e n t
Technology Laboratories (JET ). The plants in
China obtained certification from TUV Rheinland.
The Vietnam Plant obtained certification from
Bureau Veritas Certification (BVC).

ISO/TS16949(Vietnam Plant)

V·O·I·C·E
Employee´s VOICEThe duties of the Quality Assurance Section areroughly divided into two fields: quality assurance andquality management.
To assure quality, manufacturing process control isimportant. At the Yamagata Factory, car-mounted PCBs
account for 80% of its production. Quality demand istherefore extremely high, because the occurrence of
defective products could threaten somebody’s life. To
meet this demand, it is required to formulate andmaintain the manufacturing processes that can ensure
quality and establish procedures to ensure that. We
establish and ensure compliance with work standards
for quality assurance and management. Otherwise, wewould fail to prevent defective
p ro d u c t s f ro m l e av i n g t h e
fac tor y, losing the trust ofcustomers.
To ensure continuing trustfrom customers, we will becommitted to preventing
defective products fromoccurring or leaving the factory, Takashi Sasaki,
Deputy Manager of Quality
thereby maintaining outstanding Assurance Section,
product quality.
Yamagata Factory

CSR Report201510

For Business Partners

Research and Development

Major Activities in 2014

Future Plans

Promoted the development of ultrathin flexible MDiM PCBs.

Strengthen industry-academia collaboration.

Newly developed high frequency PWB.

Promote the application of ultrathin flexible MDiM PCBs.

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, lowcost production methods & processes.” We are reviewing the method 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.

Industry-academia collaborative research

Improvement Support Operation, which is coordinated by
the Iwate Industry Promotion Center, engaging in thedevelopment of a manufacturing technology for ultrathinfilm conductive polyimide substrates for the semi-additive
process by stationing one engineer in Morioka.
In addition, Meiko has a joint development agreementwith the Materials and Surface Engineering Research Instituteof Kanto Gakuin University regarding plating technology, anelement technology for the PCB manufacturing process, tokeep us updated on plating technologies.
Since last year, we have joined the high-speed transmission
working group led by the Materials and Surface Engineering
Research Institute. Although Japan’s PCB industry has been
faltering, we, as a Japanese maker of PCBs, are determined totake the lead in the development of high frequency PWB.

To develop new products and conduct market surveys,
we promote the development and exchange oftechnologies in collaboration with academic andgovernmental entities. Regarding molecular junction
technology, a base for the development of the Molecular
Direct Metalizing (MDiM) technology, we engage in joint
development efforts with Sulfur Chemical Laboratory Inc.
(Iwate University). We are not only applying the molecularjunction technology to printed circuit boards but also
promoting component development to develop otherapplications in accordance with market trends.
Meiko also participates in the Ministry of Economy,
Trade and Industry’s Strategic Foundational Technology

Road Map for the Development of MDiM PCBs2015

Low-cost FPC

2016

2017

Polyimide

2018

PEN
PET

HDI PCBs(low roughness)

Prepreg

High-speedtransmission PCBs

LCP

ABF(Ajinomoto)New material

PTFE

65μm

50μm

4 layer
150μm

135μm

120μm
6layer
200μm

11Major Activities in 2014

Future Plans

Established purchasing crisis management standards and carriedout purchasing audits in an effort to minimize procurement risks

Continue performing purchasing audits based on crisis management
standards

Performed conflict mineral survey since October 2012, using EICC
standard format

Perform continued investigation for manufacturers for whomsourcing locations are unknown

Performed an environmental measure survey based on the latest
version of regulations such as REACH regulations <SVHC161
substances>

Perform latest version management and clarify non-use guarantees

Currently, a company is required to have, as its basic framework, a consistent supply chain covering the entire process frommaterial 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, (4) exclusion of antisocial forces and (5)elimination of conflict minerals by supply chains. 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 activities for 2014 include theimplementation of initiatives such as establishingpurchasing crisis management standards and conducting
purchasing audits to minimize procurement risks, conflictmineral surveys based on the EICC standard format andenvironmental measure surveys based on the latest
version of regulations such as REACH regulations.

Basic Procurement Policy

Double layer

Ultrathin FPC

Supply Chain

COP
PE

100μm

SOCIAL REPORTSOCIAL REPORTFor Customers

1. Procurement activities optimized for our global
production in accordance with the Action Guidelines
for Purchasing Deals
2. Smooth, fair, appropriate procurement activities
based on closer communication and strengthened
cooperation with our business partners
3. Strengthened environmental measures (chemical
substances / green procurement)
4. Promotion of elimination of conflict minerals by
supply chains

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

CSR Report2015

12

Business Partner´s VOICE
We are sincerely grateful to Meiko Electronics Co., Ltd.,for its patronage of our company’s materials in Japanand overseas.
Global environmental issues, such as increasingly
serious global warming, are the largest social issues
faced by the entire world. Since its establishment, NAN
YA PLASTICS CORP. has focused on the “environment”
in carrying out all its business operations, specificallypromoting the application of green processes andenergy-saving measures to be a “green enterprise,” andwill continue to do so.
In addition, we will actively introduce the latest
equipment and technologies to enhance our recycling
system for maximum effect. We are promoting
environmental efforts not only within our company
but also throughout the supply chain, asking for the
supply of environment-friendly products.
Through the business with Meiko, we will continue
to pursue activities that reduce the environmental
burden. Your continuing patronage would be greatly
appreciated.
NAN YA PLASTICS CORP.
SALES DEPARTMENT

Vincent Cheng

Measures concerning purchasing andprocurement
Internal control and compliance
At Meiko, we undertake smooth operations with our business
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 thefollowing rules on purchasing and procurement. We carry out
appropriate transactions with our business partners byundertaking internal training and confirming compliance inrelation to adherence to laws, ordinances, and social codes,
including the Act against Delays in the Payment of
Subcontract Proceeds to Subcontracts in Japan, as well ascompliance with customs regulations and the relevant
regional and national laws, ordinances, and social codes in our
global procurement activities.
1. Fair, appropriate operations with business partners
shall be undertaken through compliance with laws
and ordinances concerning purchasing andprocurement activities.
2. Business partners’ information that we obtainthrough purchasing and procurement activities shallbe kept confidential and the information security
system for preventing the leakage of confidential
and personal information shall be strengthened.
3. Entertainment and gifts for business partners shallbe permitted to the extent that would normally beconsidered reasonable, but shall be prohibited if
such acts result in personal profits.
4. Exclusion of antisocial forces shall be exercised.

13

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 thecontent of environmentally hazardous substances toencourage the procurement of compliant products
and maintain and improve the environmental qualityof our products.
(1) RoHS Directive: EU restriction on the use ofcertain hazardous
substances in electrical andelectronic equipment(2) ELV Directive: A directive adopted by the
EU to reduce theenvironmental burdens of
end-of-life vehicles(3) REACH Regulations : E U l a w f o r p r o t e c t i n gpeople’s health and theenvironment(4) JIG (1-R): Legally controlled substances
specified in the guidelines
concerning the disclosure of
information regarding
chemical substances
contained in electrical andelectronic equipment(5) Customers’ standards
2. We encourage the signing of the Memorandum on
Environmental Protection and Guarantee of Non-Useof Environmentally Hazardous Substances to ensure
environmental protection together with our businessp a r t ner s. We a re p ur s u i ng t he s i gni ng thi sMemorandum and Guarantee with our major
business partners, including manufacturers to whom
we outsource processing.
3. We strive to reduce the discharge of industrial waste
and encourage the use of this waste as a valuable
resource by recycling it or using it in other ways
together with our business partners.

For Employees

Creation of a Comfortable Working Environment

Major Activities in 2014

Future Plans

Promoted the creation of a comfortable working environmentand system for womenDeveloped next-generation leaders who epitomize the values tobe shared by all employees
Initiated management training for employees stationed overseas
and the dispatch of employees to overseas locations

Continue promotion efforts
Cultivate next-generation management
Provide intensive education on manufacturing technologies andreinforce self-development programs

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

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, a
reduced work hour system is promoted for those returningfrom maternity or parental leave. In fiscal 2014, six
employees took parental leave, five employees returned towork and three used the reduced work hour system(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 alsotransfer personnel and exchange employees between
Meiko Group companies, both in Japan and overseas, todevelop global human resources and stimulate the further
revitalization of our human resources.

Employment of persons with disabilities
Conflict-Free Procurement Policy
In August 2012, the U.S. Securities and Exchange Commission(SEC) adopted the rules on conflict minerals under the Dodd–
Frank Wall Street Reform and Consumer Protection Act. Meikois eliminating conflict minerals from its supply chains. Meikohas defined a Conflict-Free Procurement Policy which consistsof using EICC/GeSI questionnaire-based surveys, response
disclosure, and follow-up actions to eliminate resource
procurement which includes conflict minerals.

SOCIAL REPORTSOCIAL REPORT

V·O·I·C·E

Since Fiscal 1991, Meiko Electronics Co., Ltd. (excluding its
Group companies) has continued to achieve the legallyrequired number of employees with disabilities ina c c o rd a n c e w i t h t h e A c t o n E n c o u r a g i n g t h e
Employment of Persons with Disabilities up until Fiscal
2009. In Fiscal 2010 and Fiscal 2011, however, we were
not able to meet the legal requirement, partly because
the overall number of employees increased. Since Fiscal
2012, we have continued to achieve the legally required
number of employees with disabilities.
Changes in the number of our employees with disabilities and the number required by law (Fiscal 2010–2014)
Total Employees (Persons)
1,000

Legal requirement

926

824

750

803

767

16

15

15

17

250

15

14

14

15

2010

2011

2012

2013

40

756

500

0

Employees (Persons)
30

15
15
2014

20
10
0

(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 and Vietnam, are working at
Meiko’s business establishments in Japan, while morethan 100 Japanese employees are working overseas.
Until Fiscal 2014, a total of 168 persons had completed
the language and skill training in Japan intended for
future executives of our overseas subsidiaries, which has
been offered every year since Fiscal 2003.
*As of June 30, 2015

V·O·I·C·E
Parental Leave and Reduced Work Hour System User’s VOICE
After giving birth in January 2014, I took a parental
leave for one year and three months, during which I
looked for daycare, and returned to work in April 2015.
At the workplace, I have seen working mothers
who balance career and child-raising using the
reduced work hour system after the parental leave.
Therefore, I had no intention of resigning from workand being a stay-at-home mother.
I also use the reduced work hour system to set myworking hours at 9 a.m. to 4 p.m., which gives me
enough time to take my child to and from the daycare
center.
Because my child is still young, sometimes I have totake time off on short notice when the child is sick or
for other reasons. This causes inconveniences to mycolleagues, but their kindunderstanding and thecompany ’s system haveenabled me to continue
work ing, for which I am
grateful.
I am busy with work
during the daytime andchild care af ter getting
home, but I lead a fulfilling Shizuka Oda, Operations
life every day.
Management Department

CSR Report2015

14

SOCIAL REPORTSOCIAL REPORT

V·O·I·C·E
Employee safety and health initiatives

Global Employee´s VOICEI joined Meiko in 2005 as a new graduate from a Japanese university.
Soon after, I was assigned to the Information System Department where I have been involved
with IT-related jobs throughout my career at Meiko, being in charge of developing internal
information systems and operating information security management systems.
In 2013, I was assigned to the Wuhan Plant in China, my home country, where I engaged in
improving the IT systems there, including the enhancement of production control systems, forabout a year and a half. Since I returned to the headquarters in Japan at the end of 2014, I havebeen involved with the development of internal information systems for the entire Meiko Groupin the Information System Department.
The scale of Meiko has more than doubled compared with when I joined Meiko. Meiko’s
manufacturing and selling activities have been increasingly globalized, with an increasing numberof employees with foreign nationalities, including myself. Regardless of nationality or age, highly
motivated employees are given important assignments at Meiko.
With the growing company scale, I can also feel my own growth through my jobs at Meiko,which brings me great joy. Capitalizing on the strength of my background, I will continue tocontribute to the Big Family called Meiko.

Educational programs
At Meiko, we provide job-class-specific training to newrecruits, midcareer employees, and executives. We also holddepartmental training specific to functions and job
categories. These training programs are aimed at extracting
the potential ability of individual employees, strengthening
their ability to work in teams, and improving their overall
abilities that are universal to all organizations. In addition, weoffer qualification programs and provide financial assistancewith correspondence courses to help our employees with
their self development and encourage them to obtain
technical qualifications. In particular, we position training fornext generation leaders as a primary task, and promote a
one of a-kind research to extract the shared distinctive values
that must be passed on from the leaders of today to those ofnext generation, and to reflect these to the training program.
In addition, we offer qualification programs and provide
financial assistance with correspondence courses to help
our employees with their self-development and encouragethem to obtain technical qualifications, as well as operatefoundation 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 of oversea
workers in Japan. In addition, we are planning to develop
management ability as well as overseas assignment (trainee
system).

15

Zhang Liaoyang,
Manager of Information
System Department

Job-class-specific training
New recruits• Business simulation training• Manufacturing and sales hands-on training andproblem-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• Cultivation of an implementer of Meiko’s corporate
DNA in order to produce even greater results

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

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

For Shareholders and Investors

Improvement and Expansion of IR Activities

Major Activities in 2014

Future Plans

Held meetings including results briefings for institutional
investors, analyst meetings, and small meetings, also madeseveral investor callsContinue holding explanatory meetings

Produced English versions of IR tools for foreign investors

Continue globalization and deliver valuable information forinvestors

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• Regular TOEIC Institutional Tests and incentive
system• English training for selected employees• Chinese and Vietnamese language trainings

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 will continue to bea trustworthy company to our shareholders and investors to generate corporate value.” Based on this pledge, we are striving tomaximize our corporate value by engaging in sound, fair corporate activities while complying with laws and ordinances.

Timely and adequate disclosure of information

Shareholders’ report

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

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

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

For foreign investors

Employees attending a training seminar

We have been promoting the globalization of IR activities,
including the production of IR tools in English, such as
convocation notice of the shareholders’ meeting,presentation documents, shareholders’ report anddocuments for results briefing.

MEIKO REPORTCSR Report201516

Social Contribution

Major Activities in 2014

Future Plans

Implemented CSR activities addressing local issues at each site

Create a framework that enables more employees to participate
autonomously.

Improved information sharing to enable sites to implement
activities performed at other sites.
At Meiko, we encourage social contributions by our Headquarters and group companies to build close relationships withlocal communities. We will continue to actively participate in environmental beautification activities and other events
organized by the local governments in the various areas. At the same time, we will fulfill our responsibility as a good
corporate citizen by encouraging social contribution activities in each local community.

ActionThang Long

Local clean-up activities

VietnamPresentation of gifts to local centenarians
Presentation of gifts and donations to local
bereaved families of war victims
Visits to children with HIV
Sponsorship of a local wrestling tournament
Guangzhou

Participation in a visit to senior citizens in thecommunity, with a donation (2 participants)
Participation in a blood donation activity held by
the Nansha District government (61 participantsin June)ActionFukushima

Co-sponsoring the Hirono-cho Summer Festival(provided 50,000 yen for co-sponsorship and
50,000 yen for fireworks)
Semiannual participation in blood donation
activities (12 participants in September, 19 inMarch)
Headquarters and Kanagawa

Local clean-up activities / Participation in a local
event to clean-up around Koza District rivers
Participation in a local government campaign foreliminating illegal waste dumping in central
Kanagawa

Blood donation activities

2

Meiko is actively involvedin blood donation activities at bases
i n J a p a n a n d ove r s e a s. B l o o ddonation activities at the Fukushima
Fa c t o r y w e r e c o n d u c t e d o n
September 5, 2014 and March 17,
2015, in keeping with the annual
tradition. There have beencomments from the staff about
wanting to do what they can as partof their contribution to society.
At the Guangzhou Plant, 61
employees participated in a blood
donation ac tivit y held by the
Nansha District government.

Yamagata

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

SOCIAL REPORTSOCIAL REPORTFor Local Communities

Blood donation activity at the Fukushima Factory

Blood donation activity at the Guangzhou Plant

ActionRiver clean-up activities

3

E m p l oye e s a t t h e K a n a g aw a Fa c to r y h ave
participated in the environment beautification campaigns
organized by the Koza District River Clean-up Society and the
Samukawa Eco Net. We have been continuously involved inthese campaigns for the past several years. With the increase in
the number of similar environmental groups, the areas coveredby the clean-up activities have become far more beautiful thanthey were four years ago when we first joined the effort. Now
there are almost no problems such as illegal dumping or
littering, a remarkable change highly appreciated by neighbors.
We will continue to participate in these activities.
* Samukawa Eco Net is a volunteer group based in Samukawa Town,
Kanagawa Prefecture, to help preserve the natural environment byconducting energy-saving and garbage-reduction campaigns.

ActionEmployees attending the river clean-up campaign

Social contribution activities suited to the local community

4

Meiko’s Vietnam Plant presented gifts to the centenarians in Phung Xa Village to celebrate their longevity. The Plant’s
employees are also involved in various support activities for the local community, such as the presentation of gifts and donations tolocal bereaved families of war victims and visits to children with HIV in Ha Tien.

Providing programs for local middle school and high school students

1

For the purpose of raising vocational awareness of students
through hand-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. Having experienced the manufacturing process for Meiko’s
PCBs, they could understand first-hand the importance, difficulty andenjoyment of manufacturing.

Internship for Sagae Industrial High School

17

Presenting a congratulatory gift to a centenarian Handing out a commemorative gift

Visiting child patients

CSR Report2015

18

ENVIRONMENT REPORTENVIRONMENT REPORTENVIRONMENTREPORT

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

At Meiko, we believe that minimizing the environmental burdens of ourbusiness activities is our mission and our responsibility as a company helping toachieve a sustainable society.

System for furthering Environmental Management
Board of Directors

Major Activities in 2014

Future Plans

CO2 emissions increased slightly compared with the previous year
Added 16 hybrid cars to the company-owned vehicle fleet

Reduce CO2 emissions by 1% or more
Promote the replacement of fluorescent lamps with LED lamps

Maintained a 99% or higher waste recycling rate (Plants in Japan
only)
Employed systems such as our waste exchange system to utilize
disused items

Strive for 100% waste recycling rate

President & CEO

General Manager Responsible for EMS (Japan)

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

Person responsible for EMS at Headquarters District

Guangzhou Plant in China

Wuhan Plant in China

Vietnam Plant

Person responsible for EMS at Kanagawa Factory

Stay abreast of additional restricted substances under the RoHS
Directive and perform supplier surveys

Basic Environmental Policy“Meiko recognizes that protecting the global environment and committing toclean air and water are critical responsibilities that we have for the generations
that come after us. We use resources effectively and operate in a way that iscompatible with our living environment.”

Preventing
globalwarmingReusing
naturalresources

Preventing
pollution of theecosystem

Environmental Action Guideline

19

General Manager Responsible for EMS (Vietnam)

Internal environmental auditor from the ISO Promotion Office

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

Meiko’s businesses include the patterndesign and manufacturing of printed wiringboards and the manufacturing of metalmasks, as well as the development andmanufacturing of electronic devices. We
consider the implications of these activities
for the environment, and emphasize theimportance of reducing their impact interms of prevention of global warming,
cyclical use of resources and prevention ofcontaminating the ecosystem.
In accordance with our basic
environmental policy, we fully comprehend
the impact our business activities have on
the environment. We make every effort toprevent environmental pollution andreduce our environmental footprint
through the following measures:

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

Person responsible for EMS at Fukushima Factory

Stayed abreast of the added SVHCs and performed suppliersurveys

General Manager Responsible for EMS (Guangzhou)

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

Acquisition of ISO14001 certification
We view ISO14001 as an important standard for environmental
management, began to take action toward obtaining
certification in Fiscal 2000, and have since continued these
initiatives at our plants in Japan and overseas.
Our acquisition of ISO 14001 certification

1.

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

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 and makesure 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 NayaISO14001
Mar. 27, 2001 Headquarters and Kanagawa Factory
Sept. 25, 2001 Yamagata Factory
Apr. 17, 2003 Extended certification obtained by the Fukushima Factory

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

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 Meiko Research 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*The factories in Japan obtained certification from Japan Electrical Safety& Environment Technology Laboratories (JET ). The plants in China
obtained certification from TUV Rheinland. The Vietnam Plant obtained
certification from Bureau Veritas Certification (BVC).

ISO14001 Certificate for Wuhan Plant in China ISO14001 Certificate for Vietnam Plant

CSR Report2015

20

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

Promotion of environmental targets plan
Meiko conducted an assessment of the environmental
impact of our corporate activities. As a result, we foundthat the types of energy that have a significant impact on
the environment including electricity, heavy oil, gas, andgasoline. Also closely related to environmental impact are
resources such as raw materials, water, and paper, andwaste, including plastic waste, sludge, waste acid, andwaste alkali. In Fiscal 2014, we reset the benchmark andtargets and continued action toward the new targets. We
will continue to improve production efficiency andconduct further energy-saving initiatives to achieve
steady reductions in per production volume metrics.

General Manager Responsible for EMS Managing Executive Officer

Junya Wada

Based on Meiko’senvironmental policy, we
a re t a k i n g m e a s u re s toconser ve resources ande n e r g y, r e d u c e w a s t e ,encourage recycling andproperly manage chemical
substances contained in
products, as well as those in
the production processes, to limit their usage andreduce their environmental impact. This year, MEIKO
Solar Park Fukushima for photovoltaic power
generation was completed at the Fukushima Factory,
having started operations on June 10, 2015. This
photovoltaic power generation system consists of
9,772 solar panels set on land of about 40,000 m2
within the premises of the Fukushima Factory andgenerates 2,600 MWh a year, which is equivalent to theannual power consumption of 720 typical households.
Through the operation of this system, we willcontribute to the protection of the global environment
and the creation of a sustainable society, as well as thereconstruction and development of Fukushima.
Meiko is also promoting the replacement offluorescent lamps with LED lamps at the headquarters
and all its production and sales facilities.
We will continue to reduce environmental risks tohelp conserve the global environment and contributeto society as we aim to conduct environmentallyfriendly 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 we have held a regular Energy Saving Committee since Fiscal 2009
throughout the company 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 in Fiscal 2014 increased year on year due
to growth in production volume, the rates of emissions and consumption
per production volume remained unchanged. We will continue to reduce
CO2 emissions with further initiatives, particularly those involving efficient
operation of facilities

Changes in the amount of our CO2 emission(based on the figure for Fiscal 2010 set to 1.0)

Rate of emissions per production volume

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

Changes in our electricity consumption(based on the figure for Fiscal 2010 set to 1.0)

Rate of consumption per production volume

Total consumption (Million kWh)

400

2.0

500

2.0

300

1.5

375

1.5

200

1.0

250

1.0

100

0.5

125

0.5

0

0

0

2010

2011

2012

2013

Changes in our heavy oil consumption

2014(based on the figure for Fiscal 2010 set to 1.0)

Rate of consumption per production volume

Total consumption (1,000 ℓ)

2010

2011

2012

2013

Changes in our natural gas consumption

0

2014

(based on the figure for Fiscal 2010 set to 1.0)

Rate of consumption per production volume

Total consumption (1,000 m3)

4,000

2.0

10,000

2.0

3,000

1.5

7,500

1.5

2,000

1.0

5,000

1.0

1,000

0.5

2,500

0.5

0

0

0

2010

2011

2012

2013

Changes in our gasoline consumption

2014(based on the figure for Fiscal 2010 set to 1.0)

Rate of consumption per production volume

Total consumption (1,000 ℓ)
200

2.0

150

1.5

100

1.0

50

0.5

0

2010

2011

2012

2013

2014

ENVIRONMENT REPORTENVIRONMENT REPORT

Complying with environmental laws andOrdinance

2010

2011

2012

2013

0

2014

*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 and2012 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.
*Although the volume of energy consumption has increased since Fiscal
2012 due to growth in production volume, the rate of consumption per
production volume remains unchanged.

0

Examples of energy saving improvements
An example at the Vietnam Plant

An example at the Ishinomaki Factory

If emitted to the atmosphere, the hightemperature exhaust heat from a boiler would
not only form greenhouse gas but also be awaste of thermal energy. Installing a heatexchanger on the chimney to save energy has
resulted in cutting down the environmental
impact, or CO2 emissions.

In the process of making deionized water with the factory’s production equipment, we used todrain concentrated water into general drainage after filtering it through the reverse osmosis (RO)membranes. By recycling concentrated water through the use of a water-receiving tank, we have
reduced the amount of water used.
City
water

Water-receiving tank

General drainage
CF unit
RO
PF
P

Concentrated water is recycled bybranching the pipe leading to generaldrainage so that the water returns to
the water-receiving tank.

Raw water tank

RO

RO

RO

RO

Primary RO

Secondary RO

Zero water discharged to general drainage
Recycling of water of 22 m3 per day
reduces water use by 24.5% per month
22 m3 per day × 20 (operating days) = 440 m3
per month

Energy Saving Committee

To filteredwater tank

To waterreceiving tank
To general drainage

Reduction in CO2 emissions per year

1,313.2 × 350 / 1,000 = 459.62 tons

21

Reduction in drainage water quantity

22 m3 / 89.76 m3 = 24.5% (22 tons)

CSR Report2015

22

Preventing pollution of the ecosystem

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

ENVIRONMENT REPORTENVIRONMENT REPORT

Cyclical Use of Resources

Measures for Reducing Environmental Burdens

Changes in our water consumption(based on the figure for Fiscal 2010 set to 1.0)

Rate of consumption per production volume

Total consumption (1,000 m3)

Meiko is aware of the significance of the impact of its plant operations on the local environment and 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.

10,000

2.0

7,500

1.5

5,000

1.0

2,500

0.5

Activities for reducing environmentally hazardous emissions

0

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

0

2010

2011

2012

2013

2014

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

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.

Reduction and recycling of waste

Changes in our photocopying paper consumption(based on the figure for Fiscal 2010 set to 1.0)

Rate of consumption per production volume

Total consumption (thousand sheets)
12,000

2.0

9,000

1.5

6,000

1.0

3,000

0.5

0

We have been reducing waste based on the 3R strategy (reuse,
reduce, and recycle). Continuing on from Fiscal 2013, efforts
were actively made to recycle waste into valuable resources. The
recycling rate of waste, the percentage of waste that was used
for purposes other than landfill, exceeded 99% at our plants inJapan in Fiscal 2014.

2010

2011

2012

2013

2014

Water quality
Plant name

Kanagawa
Plant

Yamagata
Plant

Ishinomaki
FactoryE x a m p l e s of waste redu c tion ef for ts

Extension of sand filtration life and reduction of waste generation
Guangzhou
Plant

Raw
water

Filter pump
Discharged water
Filtering media

The state of aeration

Two functions—aeration andautomatic backwash triggeredby sensing the load pressure—
have been added. (Aeration of
about one minute normalizes
the load pressure.)

Support gravel

Filtrated water
Backwash pump23

We have discharged effluents amounting to 250 m3 a year. Adding
these functions will achieve a 34 m 3 (13%) reduction in waste
generated when replacing filtering media, etc., and eliminate theneed to replace filtering media for two years.

Atmosphere

pH

BOD

COD

SS

Measurement
unit

—

mg/L

mg/L

mg/L

Actual value

7.27

12.6

17.8

—

Standard value

5.7 8.6

25

25

70

Measurement
unit

—

mg/L

mg/L

mg/L

Actual value

6.65

12.1

9.1

0.9

Equipment

Steam boilerStandard value

5.8 8.6

25

25

70

Measurement
unit

—

mg/L

mg/L

mg/L

Actual value

6.8

8.5

8.8

2.0

Standard value

5.8 8.6

25

160

60

Measurement
unit

—

mg/L

mg/L

mg/L

Actual value

6.84

17.1

16.6

3.7

Standard value

5.8 8.625(20)

160(120)60(50)

Measurement
unit

—

mg/L

mg/L

mg/L

Actual value

6.98

5.1

74.0

17.0

Standard value

6 9

300

500

Measurement
unit

—

mg/L

Actual value

7.01

Standard value

Substance

Nitrogen oxide
Soot and dust concentration
concentration(NOx)

Measurement
unit

g/m3N

v/vppmActual value

0.001259

0.30Standard value (Air Pollution
Control Act)
Measurement
g/m3N
unit

0

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

Kanagawa Factory

Measured values for discharged water quality and atmospheric measurements

Steam boiler

Actual value

0.00400.30
Standard value (Air Pollution
Control Act)
Measurement
g/m3N
unit
Steam boiler

Actual value

0.00400.30
Standard value (Air Pollution
Control Act)
Measurement
g/m3N
unit
Steam boiler

Actual value

0.01200.30
Standard value (Air Pollution
Control Act)
Measurement
g/m3N
unit

180
(Air Pollution
Control Act)v/vppm58
180(Air Pollution
Control Act)v/vppm63
180(Air Pollution
Control Act)v/vppm46
180(Air Pollution
Control Act)v/vppmActual value

0.014395

400Standard value

National std:
0.10
Local std:0.08

310

mg/L

mg/L

Measurement
unit

g/m3N

v/vppm

6.1

21.1

18.0

Actual value

0.0172

99

6 9

20

80

50

Standard value

0.05

310

Measurement
unit

—

mg/L

mg/L

mg/L

Measurement
unit

g/m3N

v/vppmVietnam Plant Actual value

7

7.9

16.5

5.1

Actual value

0.041850Standard value

6 9

30

75

50

Standard value

0.20

660

Wuhan Plant

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 Report2015

24

ENVIRONMENT REPORTMANAGEMENTREPORT

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 2014. 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 and resources, and recycling.

Management Report
To ensure that operations are efficient and appropriate, Meiko has improved its
transparency and established a management framework that will earn the trustof its stakeholders, establishing a system that allows audits and internal control

E nv i ro n m e nt a l b u rdens of ou r bu siness ac tivities

to function appropriately.

Scope: Headquarters and the 6 major plants Period: Fiscal 2014 (April 1, 2014-March 31, 2015) Outline of business: Manufacture of PCBs

INPUT

Energy input

Resources

OUTPUT

Electricity(MWh)465,751

Heavy oil

(kℓ)

1,172

Natural gas

3

(km )

10,268Light oil

(kℓ)

1,290

Gasoline

(kℓ)

126

Water

(km3)

11,287

Photocopying paper(thousand sheets)

7,710

Chemical substances PRTR substances(t)

CO2 emissions

(kt)

404

NOX emissions

(t)

107

Soot and dust

(t)

5.4

PRTR substances

(t)

3.7

Discharge into PRTR substances
water table

(t)

0.22

AtmosphericreleaseChemical
substances

321

Amount of waste
generated

3,703(t) (in Japan only)

PRTR substances

(t)

23

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

Management of Chemical Substances Contained in Products

Appointment/
Dismissal

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

Appointment/
Dismissal

Accounting Auditor

Appointment/
Dismissal

Board of Directors

Supervision

Board of Auditors

SelectSupervision
Cooperation

Management system for chemical substances contained in products

Environmental audit
Environmental data

President & CEO

Environmental demands
Communication of information

Compliance Committee

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

Risk Management Committee

Internal auditing

General Administrative Headquarters

Operating Headquarters

Sales Headquarters

Chief of Environment
Conservation andEquipment Maintenance,
Production Engineering
Section,Fukushima Factory

Quality Assurance Headquarter

Yasuhiro Watabe,

Production Headquarters

The photovoltaic power generation system at the Fukushima Factory is
automated. The occurrence of any trouble, however, could cause great damage.
Therefore, we ensure proper maintenance and inspection of the system toprevent the occurrence of failure or any other trouble.
It is important to ensure that the system will continue generating power foryears to come. Therefore, we will continue with steady maintenance efforts,
believing that they will eventually add up to a significant reduction of theenvironmental burden and a great social contribution.

Research and Development Group

Employee’s VOICE

Associated Business Headquarters

V·O·I·C·E

25Internal Control Committee
Internal Audit Department

Guarantee of non-use
Tables of ingredients
Analysis reports

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

Customers

Business partners

Environmental contract

CSR Report2015

26

Major Activities in 2014
Compliance with J-SOX
Performed J-SOX evaluation of Chinese subsidiaries in Chinese
language
Added a consolidated overseas subsidiary (Vietnam Plant)

Measures for Ensuring Compliance
Future Plans

Major Activities in 2014

Prepare for J-SOX evaluation of the Chinese (Hong Kong)
subsidiary in Chinese language
Facilitate and implement internal controls on consolidated
overseas subsidiaries

Our corporate governance system includes external directors, auditors as corporate monitoring function, accounting
auditors, and the Internal Audit Department for ensuring fair management and high level 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
and our Articles of Incorporation
2. A s y s t e m fo r s t o r a g e a n d m a n a g e m e n t o f
information concerning the execution of duties by
our Directors
3. A system regarding rules, etc., on the managementof the risk of loss
4. A system for ensuring that the duties of our Directors
are executed efficiently
5. A system for ensuring proper operations by the
corporate group consisting of Meiko Electronics Co.,
Ltd. and its parent company and subsidiaries
6. Matters relating to employees if their placement has
been requested by Auditors to assist with their duties
7. Matters relating to the independence of employees
assisting with the duties of Auditors from Directors
8. Matters relating to ensuring the effectiveness of
directions from Auditors to employees assisting withthe duties thereof
9. A system for reporting to Auditors by Directors andemployees and other systems related to thereporting to Auditors
10.A system for ensuring that the person who hasreported to Auditors shall not be treated adversely
by reason of such report
11. M a t t e r s r e g a r d i n g t h e p r o c e d u r e s fo r t h eadvancement or indemnification of expenses arisingfrom the execution of Auditors’ duties and the policy
for processing of expenses or liabilities arising fromthe execution of other duties
12.A system for ensuring the effective execution ofaudits by Auditors

Management ReportManagement Report

Internal Control

Internal control concerning financial
reporting
Under its Basic Policy on Internal Control System andaccording to the Practice Standards for Management
Assessment and Audit concerning Internal Control overFinancial Reporting set by the Financial Services Agency,
Meiko developed policies and plans concerning thepolicy, procedures and methods for evaluating ourinternal control, the framework of evaluations, the scopeof evaluations, evaluation schedules and recording andstorage of evaluation results, and we have set aframework for evaluations led by management.
In line with these policies and plans, we again evaluatedin Fiscal 2014 the effectiveness of our Companywide
internal controls (including account settlement andfinancial repor ting processes) that could have asubstantial effect on our consolidated financial reporting.
As a result of this evaluation, we stated that “Ourinternal control over financial reporting has beeneffective” in our internal control report for Fiscal 2014 andreceived appropriate opinions from our auditors.
Internal Control of the Meiko Group in Fiscal 2014
Internal Control Committee

Board of Directors

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

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

Group companies’ departments responsible for implementing internal control

Reviewed and revised the Code of Conduct based on Compliance
Regulations

Future Plans

Provide compliance education to all employees

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´sown unique Compliance Handbook is distributed to all
executives and employees.

Compliance Manual (Areas Requiring Compliance)
1. Compliance for our customers(1) Confidentiality obligation (2) Sincere attitudes (3) Product liability(4) Eliminating inappropriate relationships with customers(5) Prohibiting transactions based on personal considerations
2. Compliance for our suppliers(1) Fair selection of business partners(2) Prohibition of requests for kickbacks(3) Prohibition of excessive gifts and entertainment(4) Prohibition of the reception of other conveniences and facilities
3. Compliance for our investors(1) Disclosure of appropriate corporate information(2) Correct recording (3) Comprehensive internal auditing
4. Compliance for our community(1) Compliance with related laws and ordinances, etc.
(2) Compliance with the Antimonopoly Act(3) Compliance with the Act against Delay in Payment of Subcontract
Proceeds, Etc. to Subcontractors(4) Compliance with laws and ordinances on insider trading(5) Respect for intellectual property rights(6) Confrontation with antisocial forces
5. Compliance for our employees(1) Respect for human rights (2) Prohibition of sexual harassment(3) Prohibition of power harassment (4) Protection of personal information(5) Compliance with labor laws
6. Compliance for the profits and assets of the Company(1) Compliance with internal rules (2) Prohibition of conflicts of interest(3) Respect for the Company’s assets (4) Fair reporting of expenses

Compliance Handbook

Provision of compliance education
At Meiko, we provide compliance education because webelieve that the idea of compliance will be effective only
when it is adopted by all executives and employees
across the entire organization.
We issue warnings on insider
trading to all employees at 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

27

CSR Report201528

VOICE from Person in Charge

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

The Meiko Group complies with laws and ordinances,and internal regulations, led by the spirit of theCompany, encapsulated in our Business Principles andCorporate Charter. Our company activities place
heavy emphasis on social and corporate ethics.
Our compliance initiatives are not meant merely toprevent misconduct and incidents, but to help us
carry out our responsibilities as members of society,earning the trust of our customers, shareholders,investors, business partners, local communities, andemployees. We consider these compliance initiatives
to be essential to our continuing business operations.
Our Group has both large scale manufacturing sites
in China and Vietnam, as well as sales bases in theAmericas, Europe, and ASEAN countries, and our
stakeholders possess an extremely diverse set ofvalues. This is why it is extremely important for us tocultivate a high level of ethics and spirit of legal
compliance worldwide.
We will continue coordination between thedepartments in charge ateach of our sites andcommittees of exper ts,
such as the Compliance
Committee, and provide
ongoing, systematic
education, training, andawareness raising activities
aimed at both executives
and employees in order to
Saito,
build an even more robust Naoki
Deputy General Manager ofcompliance system.
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.

Major Activities in 2014

Future Plans

Headquarters, Guangzhou, Wuhan: Transition to ISO27001:2013

Headquarters, Guangzhou, Wuhan: Renewed ISO27001
certification

Our business is the manufacture and sales of electronic PCBs. To continue our business, we believe that it is essentialthat our customers have faith that 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
our customer information and information assets from threats
including fraudulent access, disasters and criminal acts. We
also take steps to raise awareness about information security
amongst the management and employees.
To this end, we have set out the following policy on
information security and declare that, in line with our Business
Principles, all management and employees should devote
concerted efforts to implementing these policies.
1. We pursue continuous improvement in our information
security system.
2. We provide every protection of our information assets 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 andconduct risk management practices.

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

Organizational Chart on Compliance
Board of Directors
Reports

Board of Auditors

Audit
Instructions

Reports

Information Security Education

Instructions

Corporate lawyer

Compliance Committee

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

Reports

Instructions

Helpline

Whistleblowing

Departments and employees at Headquarters and affiliates
Information security lecture

29

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 and six
departments of the Guangzhou Plant

February
2015

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

Future information security initiatives

Administrative Section

Cooperation

Management ReportManagement Report

Measures for Information Security

V·O·I·C·E

Introduction of the Help LineWe will continue to strive to expand the scope of ourcertification. ISMS has been introduced for all domestic
production, sales and R&D bases, and overseas
Guangzhou, Wuhan and Vietnam production
departments.

CSR Report2015

30

Management Report

Corporate Profile

Measures for Risk Management
Major Activities in 2014
Conducted safety confirmation drills twice during the year
Conducted a risk survey by a third-party organization(As of June 25, 2015)

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

Established November 25, 1975

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

Future Plans

Executives Yuichiro Naya

President & CEO

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

Seiichi Naya

Director and Senior
Managing Executive Officer

Ishinomaki Factory

Takahide Hirayama
Director and Senior
Managing Executive Officer

Fukushima Factory

Keep business continuity plans (BCPs) updated at each businesssite
Establish an information-gathering system using the internal
network

8-5, Shigeyoshi-cho, Ishinomaki, Miyagi, Japan 986-0844

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

Masakuni Shinozaki
Director and Senior
Managing Executive Officer

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

Kunihiko Sato

Director

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

Marc Schweizer

Director

Yamato Office

Yoon Ho, Shin

Director

MEIKO Research and Development Center

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.

12,888.47 million yen

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

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

Hitoshi Iyomoto

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

Hiroshi Tsukii

AuditorYasunobu Koshimura

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

Senior Corporate Auditor

No. of
10,895 (consolidated)
Employees: (Japan: 862; Overseas: 10,033)*As of March 31, 2015

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

Type of crises and risks

Main
BusinessThang Long Plant (Meiko Electronics Thang Long Co., Ltd.)Creation of Group BCP

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

M. D. Systems Co., Ltd.

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.

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. We perform
company-wide educational training twice a year toensure effective use of the system in the event ofdisasters.

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.

4-9-14, Naka-machi, Atsugi, Kanagawa, Japan 243-0018

Five-year Financial Summary
Fiscal 2010

Fiscal 2011

Fiscal 2012

Fiscal 2013

Net sales(Millions of yen)

74,72462,97260,70979,23190,895

Operating income(Millions of yen)

3,297

812

(605)

922

(2,865)

Operating margin
Ordinary income

4.4

1.3

(1.0)

1.2

(3.2)

2,127

222

(386)

1,931

1,075

(%)

2.8

0.4

(0.6)

2.4

1.2

(Millions of yen)

(3,094)

1,158(1,567)23(9,573)

(%)

—

1.8

(2.6)

0.0

(10.5)(Millions of yen)

(166.32)

61.73(83.52)

1.11(365.76)

ROE

(%)

(8.7)

3.4

(4.4)

0.1

(23.0)

ROA

(%)

(3.5)

1.3

(1.6)

0.0

Assistant Chief(7.9)

Changes in consolidated net sales

Risk Management Committee
Administrative Section(Millions of yen)
100,000
80,000 74,724
60,000Group in charge ofGroup in charge of Group in chargecollection of company-wide General affairs and of operations
information
human resources
measuresGroup incharge ofrecovery

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

(％)
10

ROE

0

△3.5

3,000

62,972 60,709

2,127

2,000
1,000

20,0000

0Division in charge of individual risks

79,23190,895

Changes in consolidated ordinary income

40,000Fiscal 2010 Fiscal 2011 Fiscal 2012 Fiscal 2013 Fiscal 2014

-1,000

1,931
1,075
222

△386

-10

ROA

3.4
1.3

△8.7

△1.6
△4.4

0.1
0.0

△7.9

-20

Fiscal 2010 Fiscal 2011 Fiscal 2012 Fiscal 2013 Fiscal 2014

-30

△23.0
Fiscal 2010 Fiscal 2011 Fiscal 2012 Fiscal 2013 Fiscal 2014

Sales composition by application (Fiscal 2014)

Sales composition by customer´s national origin (Fiscal 2014)

Sales composition by product (Fiscal 2014)

Others 20%
Other PCBs
13%
Other than PCB 7%

China and ASEAN 12%

Others 10%
Other PCBs
3%
Other than PCB 7%

Digital audiovisualequipment
5%
Storage 6%
Smart phones andmobile phones
20%

31

(%)

Net margin
Net income (loss) per share

Chief of Emergency Headquarters (President & CEO)Fiscal 2014

(Millions of yen)

Ordinary income margin
Net income (loss)

Emergency Headquarters

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

Europe andthe United States 8%
Automobiles
49%

Korea 9%HDI PCB 28%

Double-sided PCB
9%Four-layer PCB
37%

Japan 71%
Six-layer or more PCB 16%

CSR Report2015

32

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 CO2
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, such as solar
power generation equipment
and high 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 suita wide range of applications.

33

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